[Senate Report 111-82]
[From the U.S. Government Publishing Office]


111th Congress 
 1st Session                     SENATE                          Report
                                                                 111-82
_______________________________________________________________________

                                     

                                                       Calendar No. 168

              FAA MODERNIZATION AND SAFETY IMPROVEMENT ACT

                               __________

                              R E P O R T

                                 OF THE

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                                   on

                                S. 1451



                                     

               September 29, 2009.--Ordered to be printed


       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
                     one hundred eleventh congress
                             first session

            JOHN D. ROCKEFELLER IV, West Virginia, Chairman
DANIEL K. INOUYE, Hawaii             KAY BAILEY HUTCHISON, Texas
JOHN F. KERRY, Massachusetts         OLYMPIA J. SNOWE, Maine
BYRON L. DORGAN, North Dakota        JOHN ENSIGN, Nevada
BARBARA BOXER, California            JIM DeMINT, South Carolina
BILL NELSON, Florida                 JOHN THUNE, South Dakota
MARIA CANTWELL, Washington           ROGER F. WICKER, Mississippi
FRANK R. LAUTENBERG, New Jersey      JOHNNY ISAKSON, Georgia
MARK PRYOR, Arkansas                 DAVID VITTER, Louisiana
CLAIRE McCASKILL, Missouri           SAM BROWNBACK, Kansas
AMY KLOBUCHAR, Minnesota             GEORGE LeMIEUX, Florida
TOM UDALL, Colorado                  MIKE JOHANNS, Nebraska
MARK WARNER, Virginia
MARK BEGICH, Alaska
                     Ellen Doneski, Chief of Staff
                   James Reid, Deputy Chief of Staff
                     Bruce Andrews, General Counsel
             Ann Begeman, Acting Republican Staff Director
               Brian Hendricks, Republican Chief Counsel
                Todd Bertoson, Republican Senior Counsel


                                                       Calendar No. 168
111th Congress                                                   Report
                                 SENATE
 1st Session                                                     111-82

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



 
              FAA MODERNIZATION AND SAFETY IMPROVEMENT ACT

                                _______
                                

               September 29, 2009.--Ordered to be printed

                                _______
                                

     Mr. Rockefeller, from the Committee on Commerce, Science, and 
                Transportation, submitted the following

                                 REPORT

                         [To accompany S. 1451]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill (S. 1451) to modernize the air 
traffic control system, improve the safety, reliability, and 
availability of transportation by air in the United States, 
provide for modernization of the air traffic control system, 
reauthorize the Federal Aviation Administration, and for other 
purposes, having considered the same, reports favorably thereon 
with an amendment in that nature of a substitute and recommends 
that the bill (as amended) do pass.

                          Purpose of the Bill

  The FAA Air Transportation Modernization and Safety 
Improvement Act, S. 1451, as reported, would (1) reauthorize 
the Federal Aviation Administration (FAA) for two years, 
including the authorization of funding for the FAA's 
Operations, Facilities and Equipment (F&E), Airport Improvement 
Program (AIP), and Research, Engineering, and Development 
(RE&D) accounts; (2) provide dedicated funding for 
modernization of the air transportation system, improve 
oversight of the implementation of the Next Generation Air 
Transportation System (NextGen), and accelerate key NextGen 
technologies in a safe, efficient, and effective manner, (3) 
strengthen airline safety programs and FAA oversight of the 
industry, (4) bolster programs for traveling consumers and 
small community access to air service, and (5) promote 
environmental improvements to the National Airspace System 
(NAS).

                          Background and Needs

  The primary challenges facing the FAA and the aviation 
industry over the next decade are modernizing the FAA's air 
traffic control (ATC) system through the implementation of the 
NextGen, strengthening airline safety programs and the agency's 
oversight of the NAS, and ensuring small community access to 
adequate commercial air service. Expanding airport capacity, 
ensuring that the agency has enough controllers to operate the 
system, and providing adequate funding for the agency are also 
key issues. The FAA reauthorization presents an opportunity to 
make certain the agency addresses all of these concerns in an 
effective and efficient manner.
  The FAA employs about 45,000 people and has an annual budget 
of approximately $15 billion. It regulates nearly all aspects 
of aviation, including safety, manufacturing, and licensing. It 
also operates the nation's ATC system, which includes 18,000 
controllers and an extensive array of equipment and facilities. 
The United States (U.S.) airspace system remains the most 
complex network in the world, and its daily operation is one of 
the most difficult undertakings in our transportation system. 
Each day in the U.S., there are roughly 35,000 commercial 
flights, along with substantial general aviation (GA) activity. 
Despite the size and complexity of the NAS, U.S. scheduled air 
carriers transported over 4 billion commercial passengers with 
fewer than 100 passenger fatalities between 2002 and 2008.
  The existing air transportation system has been increasingly 
stretched to its limits over the past decade and needs to be 
modernized to improve capacity and efficiency. According to FAA 
statistics, an estimated 760 million passengers flew on U.S. 
commercial air carriers in 2008. This compares with 579 million 
in 1995 and 395 million in 1985. The FAA expects this figure to 
reach 1 billion passengers by 2021. This passenger growth has 
increasingly led to congestion and delay problems. In 2007, the 
NAS experienced the second worst level of congestion and delay 
on record with more than 26 percent of flights arriving late. 
Although the number of airline delays receded in 2008, the 
average delay time actually increased. These delays come with a 
significant economic cost. The Joint Economic Committee 
estimates that the cost of domestic air traffic delays to the 
American economy in 2007 was approximately $41 billion.
  All aviation stakeholders believe that modernization of the 
NAS must occur. The current ATC system simply does not have the 
capacity to accommodate projected traffic growth in a safe and 
efficient manner. The ATC system employed by the FAA is based 
on outdated technology, relying on ground-based radar systems, 
voice communications, and fragmented weather forecast services. 
To ensure safety, operations are often restricted and there is 
limited flexibility to deal with adverse weather conditions or 
other problematic events. Moreover, problems that develop in 
one sector of the system often cascade throughout the entire 
NAS. For example, congestion and delay in New York City quickly 
affect traffic in Chicago, Atlanta, Seattle, and Los Angeles. 
Small communities are hit particularly hard under these 
circumstances, as airlines often cut those routes first when 
capacity becomes limited.
  The FAA's NextGen initiative is intended to address these 
issues by fundamentally transforming the current ATC system and 
the way air traffic is managed. Through the development and 
integration of Global Positioning System (GPS) based navigation 
and surveillance, digital communications, and more accurate 
weather services, NextGen provides substantial operational, 
environmental, and safety benefits. More precise aircraft 
tracking and automated digital communications permit 
controllers and pilots to route flights throughout the entire 
airspace. Thus, aircraft are not limited to established flight 
paths required under the current system, which expands capacity 
and allows pilots to take more direct routes that result in 
lower fuel burn and fewer emissions. This flexibility, combined 
with better weather forecasting, will enable the system to re-
route aircraft around trouble spots and avoid many delays. Most 
importantly, the precision of NextGen improves safety by 
increasing the situational awareness of controllers and pilots. 
With NextGen, both pilots and controllers will have virtual 
maps in front of them displaying other flights and weather that 
provide real-time information to navigate aircraft more safely 
and efficiently.
  The FAA has made progress on ATC modernization, however, 
there is continuing concern about the speed of NextGen 
development and implementation as the bulk of FAA's efforts to 
date have fallen within the planning and development phase. 
Many stakeholders would like the integration of existing 
NextGen technologies accelerated, such as Required Navigation 
Performance (RNP) and Area Navigation (RNAV). The 
Administration has proposed $865 million for NextGen for the 
FAA's fiscal year (FY) 2010 budget, but it is unclear which 
specific programs this money will be spent on. While there is 
significant uncertainty over exact figures, the estimated cost 
of the modernization of the nation's ATC system ranges between 
$15 and $20 billion, or roughly $1 to $2 billion annually over 
the next 15 years. Industry estimates the price tag for 
equipping aircraft will be in a similar range. All industry 
stakeholders have expressed support for modernization efforts, 
but some have raised concerns regarding the potential scope of 
its implementation, unclear equipage standards, and the FAA's 
ability to lead and coordinate the effort, in addition to the 
pace of modernization.
  While the U.S. aviation industry has been experiencing the 
safest period in its history, the FAA has also been confronted 
by significant safety issues over the past two years. In 2008, 
the FAA discovered one airline had operated 46 aircraft that 
had not received all safety inspections required by 
airworthiness directives (ADs) issued by the agency. Subsequent 
to this, an additional 38 aircraft at the air carrier were 
grounded while FAA reviewed whether those aircraft complied 
with other AD safety requirements. Due to those incidents, the 
FAA began auditing the safety documentation at all airlines to 
determine if there were systemic problems throughout the entire 
Air Transportation Oversight System (ATOS). Results from this 
audit revealed that air carriers have complied in more than 99 
percent of the cases examined. Two additional air carriers, 
however, were forced to briefly ground more than 400 planes 
while specific wiring was reviewed for AD compliance, which 
caused substantial disruptions for hundreds of thousands of 
passengers. The inspections revealed that there were cases in 
which some aircraft were not in compliance, but were 
characterized by the FAA as resulting from ambiguities 
regarding application of the AD, rather than clear cases of 
non-compliance. These incidents, however, raised broader 
questions about FAA's oversight of air carriers and led the 
agency to adopt several reforms to its inspection and 
enforcement operations.
  Earlier this year, the crash of Flight 3407 on February 12, 
2009, in Buffalo, NY, further demonstrated the need to 
continually review and improve the safety of the air 
transportation system. The accident of Flight 3407, which 
resulted in 50 fatalities, was the worst U.S. aviation incident 
in more than seven years. While the investigation of the 
accident is not yet complete, public hearings held by the 
National Transportation Safety Board (NTSB) and recent 
Congressional hearings highlighted several factors that may 
have contributed to the accident, including: pilot experience 
and training, crew fatigue and commuting, and consistency of 
the safety practices between regional and major air carriers.
  A key issue identified is whether all air carriers operate at 
``one level of safety'' promoted by the FAA. Although all 
carriers must comply with Federal standards, each individual 
carrier implements the requirements through the operation of 
its own unique internal safety systems. For example, many air 
carriers' safety practices include an Aviation Safety Action 
Program (ASAP), a Flight Operational Quality Assurance (FOQA) 
program, and Line Operations Safety Audits (LOSA). None of 
these programs are required by the Federal Aviation Regulations 
(FARs), but have the potential to significantly increase the 
safety of the air carrier and the NAS. Thus, while all air 
carriers meet Federal standards, how airlines train pilots and 
manage employees may differ. Some industry experts suggest that 
these additional programs operated by major airlines make their 
overall safety systems more developed and extensive than those 
of regional airlines.
  Preliminary evidence from the crash of Flight 3407 suggests 
the pilots may not have been trained adequately. While the FAA 
has minimum training requirements that an air carrier must 
provide for its pilots, there are differences in the quality 
and comprehensiveness of these training programs. Air carriers 
provide a variety of different types of training to their 
pilots, including initial training for their new hires, initial 
training on equipment, transition training, upgrade training, 
recurrent training, and requalification training. Because many 
pilots view the regional airlines as a stepping-stone to the 
majors, there is often high turnover among their pilots. Many 
industry observers point to this as a reason that regional 
airlines do not have as much incentive to invest in extensive 
training for their pilots as the major airlines do.
  Several other aviation safety issues have raised continued 
Congressional interest. Air traffic controller staffing has 
been an on-going concern, with some questioning the extent to 
which controller fatigue may play a role in runway incursions 
and operational errors. Additional interest has centered on the 
FAA's oversight of aircraft repair stations, particularly those 
located overseas, and the adequacy of inspector staffing to 
address increased use of contract maintenance facilities. 
Additionally, there is interest in making certain the FAA 
adequately addresses NTSB safety recommendations.
  Ensuring small communities have access to commercial air 
service continues to be a challenge for the Department of 
Transportation (DOT). The Essential Air Service (EAS) program 
was created as part of airline deregulation legislation in the 
late 1970's to require that all communities that had received 
scheduled commercial air service prior to deregulation would 
continue to receive such service. The need for EAS funding in 
communities throughout the nation has grown, particularly since 
2001. The weakened financial condition of most major U.S. 
airlines after 9/11, the current economic crisis, and 
volatility in oil prices have led to service cutbacks. It is 
difficult for airlines to operate profitably in small markets 
with smaller airports and a limited population base. As a 
result, air carriers increasingly focus the vast majority of 
their service at the nation's largest airports and markets, and 
have eliminated service to small communities.
  As the need for financial support to maintain air service in 
some small communities has grown, pressure has increased within 
the Federal government to develop incentives and alternatives 
to improve the program. The Administration is seeking to 
increase EAS funding in its FY 2010 budget proposal to a total 
of $175 million. Congress has continued to look for solutions 
that would improve the fiscal stability of the EAS program. The 
Senate Commerce Committee held a symposium in 2007 to discuss 
ideas to address the problems identified by stakeholders, and 
the Government Accountability Office (GAO) has released a study 
of the issues and potential solutions. Several proposals have 
been put forward to improve the economics of the program, 
including reducing service level requirements, modifying 
aircraft requirements, and permitting greater DOT discretion in 
negotiating contracts. Many stakeholders, however, believe that 
while these proposals have some merit, the economics of small 
community air service will still require greater funding if all 
eligible communities are to continue receiving scheduled air 
service.

                         Summary of Provisions


                        TITLE I--AUTHORIZATIONS

  Title I would reauthorize all of the FAA's four major 
accounts: Operations; RE&D F&E and the AIP through FY 2011. 
Airport program administrative expenses would also be 
authorized in this legislation. Table 1 provides details of the 
exact proposed authorized amounts:

Table 1: Proposed Authorized Amounts for FAA Major Accounts (in millions
                               of dollars)
------------------------------------------------------------------------
                Account                       2010             2011
------------------------------------------------------------------------
Operations............................           9,336            9,620
Research, Engineering & Development...             200              206
Facilities & Equipment................           3,500            3,600
Airport Improvement Program...........           4,000            4,100
------------------------------------------------------------------------

  The authorized amount for Operations would be consistent with 
the Administration's proposal for the account in FY 2010, with 
a 3 percent increase to adjust for the rate of inflation in FY 
2011. The authorizations for F&E, RE&D, and AIP would be set at 
levels higher than the Administration's proposal to ensure 
modernization needs are met. The budgetary protections for 
FAA's authorized budget would also be extended through FY 2011.
  Title I would also direct $500 million from the newly created 
ATC System Modernization Account to be included in the F&E 
budget. Funds from this modernization account would only be 
used to support the development and implementation of the 
NextGen programs that advance the modernization of the ATC 
system. The purpose of the modernization sub-account, which was 
established within the Airport and Airways Trust Fund (AATF, or 
Trust Fund), would be to ensure there is adequate funding 
available for NextGen programs by directing the first $500 
million in annual AATF receipts to be deposited in the 
modernization sub-account.
  Other provisions included in the title would require the FAA 
to clearly identify NextGen programs and spending in the 
agency's 10-year investment plan, and broaden the FAA's grant 
program for undergraduate students conducting research aimed at 
supporting the FAA, including those that impact new 
technologies related to aircraft and air traffic management 
functions.

                     TITLE II--AIRPORT IMPROVEMENTS

  Title II focuses on the AIP and the Passenger Facility Charge 
(PFC) programs, and proposes a number of new initiatives to aid 
airport development. It would streamline the PFC process by 
simplifying approval requirements for imposing or amending 
PFCs, while still retaining audit controls, and FAA project and 
expenditure oversight. Additional requirements would be imposed 
on increasing PFC's or using the revenue for inter-modal 
projects. This process is based on a successful pilot program 
for streamlining the PFC process authorized in the last FAA 
Reauthorization bill enacted into law, Vision 100.
  The title would not change or increase the maximum allowable 
PFCs that are currently permitted under the program's 
authority. To assess potential improvements to the PFC program, 
it would direct the Secretary of Transportation to establish 
and conduct a pilot program in which an airport may impose a 
PFC without regard to dollar amount limitations if that airport 
collects the charge directly from passengers at the airport, 
via the Internet, or in any other reasonable manner. The same 
eligibility and oversight criteria applied under the regular 
PFC authority would also apply to this pilot program, which 
would be limited to six airports, and the airport may not 
collect the charge through an air carrier.
  To address airport infrastructure needs through the AIP, 
Title II would provide flexibility to use entitlement funds for 
relocation or replacement of facilities under certain 
circumstances, and would allow airports to sell land that is no 
longer needed for noise compatibility purposes and use the 
proceeds for other AIP projects at that facility rather than 
putting the money back into the Trust Fund. It would also 
provide increased Federal support for small airports by 
adjusting the government share of certain project costs to 95 
percent, and would allow small airports with increased 
operations to receive a higher Federal grant share for two 
years as they transition to a larger airport status. Other 
provisions include:
           An increase in the AIP noise set-aside to $300 
        million annually and expansion of project eligibility 
        requirements.
           Broader authority for AIP funds to be utilized to 
        streamline environmental reviews for airport capacity 
        projects, and to encourage the implementation of 
        environmentally-beneficial aircraft flight procedures.
           Technical edits to the AIP that include adding 
        veterans from the Afghanistan/Iraq conflict to the list 
        of veterans eligible for employment preference on AIP 
        projects.
    Title II would also (1) allow current or former military 
airports to be eligible for grant funding if an airport is 
found to be critical to the safety of trans-oceanic air 
traffic, (2) direct the FAA Administrator to provide a certain 
level of AIP funding for U.S. territories, and (3) make certain 
projects incurred in anticipation of severe weather or the 
acquisition of glycol recovery vehicles eligible for airport 
development funding.
  In an effort to promote environmental benefits at airports, 
Title II would establish a pilot program that permits the FAA 
to carry out a limited number of environmental mitigation 
projects at public-use airports focused on achieving reductions 
in aircraft noise, airport emissions, or airport water quality 
impacts. It would also expand the type of research that the FAA 
may conduct or supervise to include support programs designed 
to reduce gases and particulates emitted from aircraft engines.

              TITLE III--ATC MODERNIZATION AND FAA REFORM

  Title III focuses on advancing the NextGen initiative and 
improving FAA management practices and oversight of the 
agency's modernization efforts. If fully implemented, NextGen 
would fundamentally transform ATC from a ground-based radar 
system to a satellite-based system that uses GPS navigation and 
surveillance, digital communications, and more accurate weather 
services.
  The primary purpose of Title III would be to accelerate the 
planning and implementation of critical NextGen technology. To 
this end, it would establish clear deadlines for the adoption 
of existing GPS navigation technology including RNP and RNAV, 
which would allow aircraft to fly precise procedures into and 
out of airports, and in the ``en route'' environment. Title III 
would initially require the FAA to focus these efforts on the 
nation's most congested airports, mandating 100 percent RNP/
RNAV coverage at the top 35 airports by 2014. The entire NAS 
would be required to accommodate RNP/RNAV technology by 2018.
  The title also directs the FAA to accelerate planned 
timelines for integrating Automatic Dependent Surveillance-
Broadcast (ADS-B) technology into the NAS. ADS-B is considered 
the cornerstone GPS technology of the NextGen system and would 
provide substantial operational, environmental, and safety 
benefits by increasing the situational awareness of controllers 
and pilots through more precise aircraft tracking. FAA would be 
required to mandate the use of ``ADS-B Out'' technology, which 
permits the broadcast of ADS-B transmissions from aircraft to 
air traffic control, on all aircraft by 2015. The FAA would 
also be required to initiate a rulemaking that mandates the use 
of ``ADS-B In'' technology, which allows aircraft to receive 
ADS-B data on cockpit displays, on all aircraft by 2018.
  To strengthen stakeholder support for the objectives of 
NextGen, the FAA would be required to report to Congress with 
specific plans for implementation of ADS-B ground station 
infrastructure, milestones for transitioning these new 
capabilities into the NAS, detailed schedules for air-to-air 
applications, and baseline metrics to measure the agency's 
progress. In addition, the title directs the agency to identify 
possible incentives for equipping aircraft with ADS-B 
technology and the development of performance metrics that 
track the annual performance of the NAS, in detail, after the 
identification of optimal baselines.
  Title III would also establish an Air Traffic Control 
Modernization Oversight Board to provide specific oversight of 
FAA's modernization activities. The Board's responsibilities 
would include providing advice on strategic plans for FAA 
modernization, approving modernization expenditures in excess 
of $100 million, and approving selections of the leaders for 
the Air Traffic Organization (ATO) and the Joint Planning and 
Development Office (JPDO). The Board would be composed of ten 
members: the FAA Administrator, a Department of Defense (DOD) 
representative, one member representing the public interest, 
one Chief Executive Officer (CEO) of an airport, one CEO of a 
passenger or cargo airline, one member representing FAA 
employees involved with the operation of the ATC system, one 
member representing FAA employees involved with the maintenance 
of the ATC system, one aircraft manufacturer representative, 
and one GA representative. This Board would replace the FAA's 
Management Advisory Committee and its ATC subcommittee.
  Title III seeks further accountability for modernization at 
the FAA through the creation of a Chief NextGen Officer 
position to be designated by the FAA Administrator. This 
individual would be tasked with responsibility for 
implementation and coordination of all Administration programs 
associated with NextGen, and would be a tenth, ex-officio 
member of the ATC Modernization Oversight Board.
  Another step included in the title to strengthen government 
accountability for NextGen is a requirement that all Federal 
agencies participating in the airspace modernization effort 
designate a single office to be responsible for carrying out 
NextGen responsibilities within their Departments. This 
includes the DOD, the National Aeronautics and Space 
Administration (NASA), the Department of Commerce (DOC), and 
the Department of Homeland Security (DHS). This provision also 
seeks to improve communication and cooperation between each 
agency.
  To address the matter of ATC facility realignment or 
consolidation as the airspace system is modernized, Title III 
would require the FAA to create a specific process to complete 
a comprehensive study of this matter. This analysis would 
consider the agency's facility needs and how it may best move 
forward on realignment to help reduce capital, operating and 
maintenance costs, while still ensuring the safety of the air 
transportation system. Title III would also require the 
development of a process to include representatives of Federal 
employees in the planning of ATC modernization projects, and to 
take specific considerations into account if entering into 
agreements with non-government providers of NextGen air traffic 
services. A task force on ATC facilities would also be created 
to consider the condition of such facilities nationally and 
make recommendations to FAA, which would develop a plan to 
address their concerns.
  To ensure contracts cannot be ``imposed'' on FAA workforces 
in the future, Title III would set up a new process to make 
certain collective bargaining disputes at the FAA are 
adequately resolved. The FAA Administrator and employees' 
unions would first be required to use the mediation services of 
the Federal Mediation and Conciliation Service (FMCS) if an 
impasse is reached during the collective bargaining process. If 
mediation fails, the FAA Administrator and the employees' union 
would be required to use the Federal Services Impasses Panel 
(FSIP) to resolve their issues through binding arbitration by a 
private arbitration board consisting of three members. 
Decisions of the arbitrators would be reached within 90 days of 
appointment and would be conclusive and binding.
  The title would further direct the FAA to move forward on a 
number of initiatives associated with NextGen, including the 
following:
           Developing a plan to accelerate the certification 
        of NextGen technologies.
           Facilitating the integration of unmanned aerial 
        systems (UASs) into the NAS, including a pilot program 
        at four test sites in the U.S. by 2012.
           Creating a Surface Systems Program Office to 
        evaluate and implement airport surface detection 
        technology.
           Establishing a pilot program that permits the FAA 
        to work with up to five States to establish ADS-B 
        equipage banks for making loans to help facilitate 
        equipage of aircraft locally.
  In addition, there are technical changes regarding FAA 
management, the FAA's ability to enter into reimbursable 
agreements, FAA acquisition authority, management of property, 
providing assistance to foreign aviation authorities, and 
employee benefits.

   TITLE IV--AIRLINE SERVICE AND SMALL COMMUNITY SERVICE IMPROVEMENTS

  Title IV focuses on improving airline service and small 
community access to air service. Airline service provisions 
would require air carriers and airport operators to develop 
contingency plans to handle situations in which a flight is 
substantially delayed on the tarmac while passengers are 
confined to an aircraft. The plan would have to outline how the 
airline will ensure the passengers are provided (1) adequate 
food, potable water, and restroom facilities, and (2) timely 
and accurate information regarding the status of the flight. 
This plan would be filed with the DOT, which would be required 
to make the information publicly available. Under the plan, the 
air carrier would be required to provide the passengers with 
the option to deplane after three hours have elapsed, unless 
the pilot determines the flight will leave within 30 minutes 
after the three hour delay or that there is a safety or 
security concern with doing so.
  The airline service provisions also mandate improved 
disclosure of flight information to passengers when purchasing 
tickets. Airlines would be required to post the on-time 
performance of chronically delayed or cancelled flights on 
their website--including delays, diversions and cancellations--
updated on a monthly basis. Chronically delayed or cancelled 
flights would also be identified by the airline when a customer 
is booking a ticket on a website, prior to purchase. The title 
would further direct the DOT to expand the breadth of subjects 
it considers for airline consumer complaint investigations, and 
would establish an advisory committee for aviation consumer 
protection to advise the Secretary of Transportation in 
carrying out air passenger service improvements. The DOT would 
also be required to complete a rulemaking directing air 
carriers to provide the public with a list of passenger 
charges, besides airfare (i.e. baggage fees, meal fees, etc.), 
that may be imposed by the air carrier. Air carriers would be 
required to update the list every 90 days unless there is no 
increase in the amount or type of fees.
  Title IV provisions also propose a number of improvements to 
the EAS program and the Small Community Air Service Development 
Program (SCASDP). Authorized funding for EAS would be increased 
to $175 million annually, a $48 million increase, through FY 
2011. The SCASDP would be authorized at $35 million annually 
through FY 2011. Other provisions aimed at improving service to 
EAS communities include incorporation of financial incentives 
into contracts with EAS carriers to encourage better service, 
longer-term EAS contracts if it is determined to be in the 
public interest, development of a program to create incentives 
for large carriers to code-share on service to small 
communities, and requiring large airlines to code-share on EAS 
flights in up to 10 communities.
  Additional proposed EAS reforms include allowing an air 
carrier to provide service to a desired location, regardless of 
that location's per passenger subsidy level, if a State or 
local government is willing to pay the difference between the 
per passenger subsidy and the allowable dollar amount for such 
subsidy. It also authorizes a State or local government to 
submit a proposal for a preferred air carrier service if the 
State or local government is willing to pay the difference 
between the lowest bid and the preferred air carrier. The title 
would further require the establishment of an Office of Rural 
Aviation within DOT to focus on the development of longer-term 
EAS contracts and to review and compare air carrier 
applications for EAS service from different communities.
  Other provisions in this title include allowing AIP funding 
to be used for converting an EAS airport into a GA airport if 
the EAS community exits the program, increasing funding for 
contract towers that benefit small communities, and modifying 
language governing disputes between EAS communities and their 
air service providers.

                        TITLE V--AVIATION SAFETY

  Title V proposes measures to address various aviation safety 
matters. Among these are several provisions that target 
particular problem areas identified by the NTSB, including a 
requirement that FAA develop a plan to provide runway incursion 
information to pilots in the cockpit by December 31, 2009, and 
initiate an improved process for tracking and investigating 
runway incursions and operational errors. Two fatigue 
initiatives are also proposed that focus on the impact of 
fatigue on flight deck and cabin crews. One initiative would 
require a National Academy of Sciences study that would 
consider the latest research on fatigue, circadian rhythms and 
international standards. The FAA would have to apply this study 
to its required rulemaking on flight time limitation and rest 
requirements for pilots. A second provision would require the 
FAA to implement the findings of a flight attendant fatigue 
study performed by the Civil Aerospace Medical Institute.
  This title also seeks to improve safety for air emergency 
medical service operators and their patients by mandating an 
FAA rulemaking to require the use of a standardized checklist 
of risk factors when determining whether a mission should be 
initiated, and the creation of a standardized flight dispatch 
procedure for these operators. It would require emergency 
medical aircraft to have a terrain awareness and warning system 
on board within one year after the date of enactment, and the 
initiation of a rulemaking to require the use of flight data 
and cockpit voice recorders on board these aircraft.
  Title V includes provisions to ensure consistency in 
commercial air carriers' implementation of ADs. Among the 
corrective actions it would take are (1) improving the FAA's 
voluntary disclosure reporting process to ensure adequate 
actions are being taken in response to such reports, (2) 
adopting procedural improvements for inspections that prohibit, 
for three years, FAA inspectors from leaving the agency to work 
for the air carrier for which they had oversight, (3) an 
independent review of safety issues, on an annual basis, by the 
Department of Transportation Office of the Inspector General 
(DOT IG) to investigate air safety concerns identified by 
employees and reported to the FAA, (4) creation of a national 
review team to conduct periodic, random reviews of the FAA's 
oversight of air carriers, (5) establishment of an Aviation 
Safety Whistleblower Investigation Office to consider 
complaints and make recommendations for corrective actions, and 
(6) creation of a process by which the current ATOS database is 
reviewed on a monthly basis to assess trends and take 
appropriate corrective action.
  Title V would initiate a comprehensive review of the FAA's 
ATC Academy and facility training efforts for the air traffic 
controller workforce. It would require the FAA to clarify 
responsibility and direction of the facility training program 
at the national level and establish standards to identify the 
number of developmental controllers that can be accommodated by 
each facility. For the flight attendant workforce, it would 
require the FAA to move forward on efforts to apply 
Occupational Safety and Health Administration (OSHA) 
requirements to crewmembers while working in the aircraft. It 
would also require that flight attendants working in the U.S. 
be proficient in English language skills.
  Other provisions in the title would provide FAA continued 
access to criminal history databases to perform critical safety 
and security functions, and access to abandoned type 
certificates and supplemental type certificates to improve FAA 
safety reviews. It would further require the FAA to issue a 
final rule regarding re-registration and renewal of aircraft 
registration to promote the accuracy of the FAA's aircraft 
registry. Other provisions in this section would extend the 
timeline for FAA to begin to issue design organization 
certificates and allow for the use of third party contractors 
in the development and implementation of performance based 
navigation procedures.
  In an effort to take steps to ensure ``one level of safety'' 
exists across all commercial aircraft operations, the title 
mandates that all carriers adopt ASAP, FOQA, and LOSA programs, 
and promotes cooperation among carriers to share best practices 
and other critical safety information. Other actions would 
include: (1) requiring air carriers to examine a pilot's 
complete history when deciding whether to hire a pilot; (2) 
annual reporting on the implementation of NTSB recommendations; 
(3) the evaluation of flight crew training, testing and 
certification requirements; and (4) requiring biennial 
inspections of pilot training schools and annual inspections of 
regional air carriers.
  Title V would also require the FAA to ensure that FAA-
certified repair stations outside the U.S. performing work on 
U.S. commercial air carriers have drug and alcohol testing 
programs in place that are acceptable to the FAA and the laws 
of the country in which the station is located. It would also 
mandate that all part 145 repair stations, in foreign countries 
with which the U.S. does not have a maintenance safety or 
maintenance implementation agreement, be inspected twice each 
year by FAA safety inspectors. The use of FAA inspectors would 
not be required if there is a bilateral aviation safety 
agreement in place that allows for comparable inspection by 
local authorities. Similarly, Title V would also direct the FAA 
to issue regulations that limit the ability of a non-
certificated maintenance provider to be able to work on the 
aircraft of part 121 air carriers to several limited 
exceptions--all of which require the supervision or work in 
conjunction with the employees of a certificated repair station 
or air carrier.

                      TITLE VI--AVIATION RESEARCH

  Title VI is focused on improving the research activities of 
the FAA and promoting environmental benefits for the aviation 
industry. It proposes several new research efforts, as follows:
           Evaluation of proposals to address wake turbulence 
        effects, volcanic ash avoidance, and severe weather 
        research (including de-icing).
           Establishment of a Center of Excellence to study 
        the use of clean coal technology for aircraft.
           Creation of the ``Advisory Committee on the Future 
        of Aeronautics'' to examine the best governmental and 
        organizational structures for aeronautics research and 
        development.
           Implementation of a research program to evaluate 
        aircraft cabin air quality.
    The title would also extend a program to authorize grants 
to nonprofit research foundations to improve the construction 
and durability of runway pavements, and reauthorize funding for 
an Applied Research and Training Center of Excellence.
    Other programs in Title VI seek to reduce the impact of 
aviation on the environment, including the following:
           A permanent authorization for the Airport 
        Cooperative Research pilot program, which conducts 
        environmental and other research.
           Establishment of a consortium to study the 
        reduction of civilian aircraft noise, emissions, and 
        energy.
           Requiring the FAA to consider and issue guidelines 
        for the construction of wind farms in the proximity of 
        critical FAA facilities.
           Creation of a program to reduce harmful emissions 
        from airport power sources and increase energy 
        efficiency.
           Establishment of a pilot program to promote zero 
        emissions from airport vehicles.
  Another aviation research program is centered on 
incorporating UASs into the NAS. It would permit the FAA to 
conduct developmental research on UASs and would direct the 
agency to assess UAS capabilities.
  The title would also authorize funding for two environmental 
initiatives currently underway at the agency: (1) the 
Continuous, Low Energy, Emissions and Noise (CLEEN) program and 
(2) the Commercial Aviation Alternative Fuel Initiative 
(CAAFI). The CLEEN program would focus on expediting the 
integration of previously conceived noise, emission, and fuel 
burn reduction technologies into current and future aircraft. 
The CAAFI program would focus on developing alternative fuels, 
especially renewable fuels, that can be used in existing 
aircraft engines.

                        TITLE VII--MISCELLANEOUS

  Title VII contains the following provisions:
           An extension of the war-risk insurance program.
           A human intervention management study for flight 
        crews.
           Staffing, training and net worth adjustments for 
        the airport concessions disadvantaged business 
        enterprise initiative.
           A requirement for FAA to update its calculation of 
        over-flight fees.
           A required GAO study of training for technical 
        specialists.
           A permanent extension of the competitive access 
        report program for airports.
           Allowing air tour over flights of national parks 
        upon completion of a voluntary agreement between 
        operators and the park.
           A phase out of Stage I and II aircraft in the 
        continental U.S.
           A prohibition on the FAA taking action to challenge 
        aircraft weight restrictions imposed locally at New 
        Jersey's Teterboro Airport.
           A pilot program for the redevelopment of airport 
        properties.
           Adjustments to permit for the air transportation of 
        certain musical instruments.
           Adding a plan for recycling to the definition of 
        airport planning requirements.
           Miscellaneous program extensions and technical 
        corrections.

                          Legislative History

  Chairman Rockefeller and Ranking Member Hutchison, along with 
Senators Dorgan and DeMint, introduced S. 1451, the FAA Air 
Transportation Modernization and Safety Improvement Act, on 
July 14, 2009. The Committee held a series of hearings on 
reauthorizing the FAA in the 109th and 110th Congresses in 
preparation for the bill. These hearings were followed up by 
several hearings in the 111th Congress that were focused on the 
modernization and safety of the air transportation system. On 
March 25, 2009, a hearing was held on ``FAA Reauthorization--
NextGen and the Benefits of Modernization'', at which 
representatives from the FAA, the GAO, a labor union, an 
airline, and an aircraft manufacturer testified. On May 13, 
2009, a hearing was held on ``The Reauthorization of the FAA: 
Perspectives of Aviation Stakeholders'', at which 
representatives from airports, manufacturers, airlines, GA, and 
labor unions testified. On June 10, 2009, a hearing was held on 
``Aviation Safety: The FAA's Role in the Oversight of 
Commercial Air Carriers'', at which representatives from the 
FAA, the NTSB, the DOT IG, and the Flight Safety Foundation 
testified. On June 17, 2009, a hearing was held on ``Aviation 
Safety: The Role and Responsibility of Commercial Air Carriers 
and Employees'', at which representatives from the major 
airlines, the regional airlines, airline pilots, and the 
Families of Flight 3407 testified. On August 6, 2009, a hearing 
was held on ``Aviation Safety: The Relationship between Network 
Airlines and Regional Airlines'', at which representatives from 
the major airlines and regional airlines testified.
  On July 21, 2009, the Committee met in Executive Session 
during which S. 1451 was considered. A substitute manager's 
amendment that made technical and perfecting changes to the 
provisions of S. 1451 was offered and approved by voice vote. 
Technical fixes and modifications included in the manager's 
amendment included provisions that would (1) modify the 
composition of the Air Traffic Modernization Board, (2) require 
a study on mobile telemetry, (3) update and modify provisions 
in the bill pertaining to UASs, (4) extend airline review of 
pilot records from the previous 10 years to all records, (5) 
express Congressional findings on the Disadvantaged Business 
Enterprise (DBE) program, (6) require an FAA study on air cabin 
quality, (7) modify foreign repair station inspection 
requirements, (8) require the FAA to study the effectiveness of 
bird-detecting radar systems, (9) strengthen privacy 
protections for pilot records, (10) modify provisions in the 
bill for research on reducing aircraft noise, emissions, and 
energy consumption, (11) implement DOT IG recommendations on 
ATC staffing, (12) modify Air Traffic Control Contract Program 
reimbursement requirements, (13) make certain the FAA 
Administrator implement NextGen in a manner that permits the 
adoption of novel or currently unknown technologies, (14) 
continue AIP funding for certain airports, (15) modify 
requirements for the National Review Team, (16) include 
disabled veterans in the DBE program, (17) require a GAO study 
on helicopter emergency medical services, (18) require 
operators of helicopter emergency medical services to report 
certain information, (19) modify provisions related to the 
consolidation of terminal radar approach and control facilities 
(TRACONs), (20) require flight attendant training for serving 
alcohol and dealing with disruptive passengers, and (21) repeal 
certain limitations on AIP funding for the Metropolitan 
Washington Airports Authority.
  In addition to the manager's amendment, 5 amendments were 
offered during the Executive Session, all related to slot 
exemptions at Ronald Reagan Washington National Airport (DCA). 
Senator Ensign offered 3 amendments: a first-degree slot 
amendment that would allow an airline to use any within-
perimeter slot currently used for a flight to a large-hub 
airport to convert that slot and use it for a beyond-perimeter 
flight; another first-degree amendment that mirrored the first 
amendment offered, but also added 10 additional beyond-
perimeter slot exemptions; and a second-degree amendment that 
modified Senator Cantwell's first-degree slot amendment. 
Senator Ensign subsequently withdrew all 3 amendments. Senator 
Cantwell offered a first-degree amendment that would have added 
12 additional beyond-perimeter slot exemptions and 8 additional 
within-perimeter slot exemptions. Senator Warner offered a 
second-degree amendment that limited the additional beyond-
perimeter slot exemptions proposed in Senator Cantwell's 
amendment, and eliminated the additional within-perimeter 
slots. Before offering her first-degree amendment, which was 
defeated by voice vote, Senator Cantwell offered a modified 
version of that amendment. By rollcall vote of 12 yeas and 13 
nays as follows, the modified amendment was defeated:
        YEAS--12                      NAYS--13
Mr. Inouye\1\ (HI)                  Ms. Kerry\1\ (MA)
Mr. Dorgan (ND)                     Mr. Pryor\1\ (AR)
Mrs. Boxer (CA)                     Ms. Klobuchar (MN)
Mr. Nelson (FL)                     Mrs. Hutchison (TX)
Ms. Cantwell (WA)                   Ms. Snowe\1\ (ME)
Mr. Lautenberg (NJ)                 Mr. Ensign (NV)
Mrs. McCaskill (MO)                 Mr. DeMint (SC)
Mr. Udall (NM)                      Mr. Thune\1\ (SD)
Mr. Warner (VA)                     Mr. Isakson (GA)
Mr. Begich (AK)                     Mr. Vitter (LA)
Mr. Rockefeller (WV)                Mr. Brownback (KS)
Mr. Johanns(NE)                     Mr. Martinez (FL)

    \1\By proxy

  Staff assigned to this legislation are Gael Sullivan, 
Democratic Professional Staff Member, Rich Swayze, Democratic 
Professional Staff Member, and Jarrod Thompson, Republican 
Senior Professional Staff Member for Aviation.

                            Estimated Costs

  In accordance with paragraph 11(a) of rule XXVI of the 
Standing Rules of the Senate and section 403 of the 
Congressional Budget Act of 1974, the Committee provides the 
following cost estimate, prepared by the Congressional Budget 
Office:

                                                September 17, 2009.
Hon. John D. Rockefeller IV,
Chairman, Committee on Commerce, Science, and Transportation,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 1451, the FAA Air 
Transportation Modernization and Safety Improvement Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Megan 
Carroll.
            Sincerely,
                                              Douglas W. Elmendorf.
    Enclosure.

S. 1451--FAA Air Transportation Modernization and Safety Improvement 
        Act

    Summary: S. 1451 would authorize appropriations, mainly 
over the 2010-2011 period, for activities of the Federal 
Aviation Administration (FAA) and other federal programs 
related to aviation. Provisions of the legislation also would 
affect direct spending and revenues. CBO and the Joint 
Committee on Taxation (JCT) estimate that implementing S. 1451 
would:
           Increase discretionary spending by $27.9 
        billion over the 2010-2014 period;
           Reduce net direct spending by $67 million 
        over the 2010-2014 period and increase it by $283 
        million over the 2010-2019 period; and
           Reduce revenues by $6 million over the 2010-
        2014 period and $150 million over the 2010-2019 period.
    Enacting those provisions that would affect direct spending 
and revenues would reduce future deficits by $61 million over 
the 2010-2014 period and increase them by $433 million over the 
2010-2019 period.
    S. 1451 contains intergovernmental and private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
because it would impose new requirements on both public and 
private entities that own aircraft, helicopters, or airports. 
The bill also would require state and local governments to 
provide the FAA with access to data on certain criminal 
activity. CBO estimates that the aggregate cost of the 
intergovernmental mandates in the bill would fall below the 
annual threshold established in UMRA ($69 million in 2009, 
adjusted annually for inflation). In addition, the bill would 
impose private-sector mandates on owners and operators of 
certain aircraft, and commercial air carriers. Based on 
information from the FAA and industry sources, CBO estimates 
that the aggregate cost of complying with the private-sector 
mandates in the bill would exceed the annual threshold 
established in UMRA ($139 million in 2009, adjusted annually 
for inflation).
    Estimated cost to the federal government: The estimated 
budgetary impact of S. 1451 is shown in Table 1. The costs of 
this legislation fall primarily within budget function 400 
(transportation).
    Basis of estimate: For this estimate, CBO assumes that S. 
1451 will be enacted near the start of fiscal year 2010. Outlay 
estimates are based on historical spending patterns for 
affected programs and on information provided by the Department 
of Transportation (DOT) and the FAA.

Spending subject to appropriation

    S. 1451 would authorize appropriations, mainly over the 
2010-2011 period, for the FAA and other federal programs 
related to aviation. We estimate that fully funding S. 1451 
would increase discretionary spending by $27.9 billion over the 
2010-2014 period, primarily for major programs administered by 
the FAA. That estimate assumes that amounts authorized and 
estimated to be necessary for later years are provided near the 
start of each fiscal year.
    FAA operations. S. 1451 would authorize appropriations 
totaling about $19.0 billion over the 2010-2011 period for FAA 
operations, particularly for salaries and expenses related to 
operating the air traffic control system. (Slightly more than 
$9.0 billion for FAA operations was appropriated for 2009.) 
Assuming appropriation of the authorized amounts, CBO estimates 
that fully funding FAA operations as authorized in S. 1451 
would result in additional spending totaling about $19.0 
billion over the 2010-2014 period.

                                TABLE 1.--ESTIMATED BUDGETARY EFFECTS OF S. 1451
----------------------------------------------------------------------------------------------------------------
                                                             By fiscal year in millions of dollars--
                                                ----------------------------------------------------------------
                                                   2009     2010     2011     2012     2013     2014   2009-2014
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION

Spending Under Current Law:
    Budget Authority/Authorization Level\a\....   13,360      127       77       77       77       77    13,795
    Estimated Outlays\b\.......................   15,775    6,570    5,120    4,407    4,116    4,041    40,029
Proposed Changes:
    FAA Operations:
        Authorization Level....................        0    9,336    9,620        0        0        0    18,956
        Estimated Outlays......................        0    8,309    9,589    1,058        0        0    18,956
    Air Navigation Facilities and Equipment:
        Authorization Level....................        0    3,500    3,600        0        0        0     7,100
        Estimated Outlays......................        0    1,855    2,783    1,425      750      251     7,064
    Airport Improvement Program:\c\
        Authorization Level....................        0        0        0        0        0        0         0
        Estimated Outlays......................        0       73      169      250      290      311     1,093
    Research Engineering and Development:
        Authorization Level....................        0      200      206        0        0        0       406
        Estimated Outlays......................        0      106      177       92       27        4       406
    Essential Air Service:
        Authorization Level....................        0       48       48       48       48       48       240
        Estimated Outlays......................        0       38       48       48       48       48       230
    Other Provisions:
        Estimated Authorization Level..........        0       78       63       28       27       27       223
        Estimated Outlays......................        0       46       51       32       27       27       183
        Total Changes:
            Estimated Authorization Level......        0   13,162   13,537       76       75       75    26,925
            Estimated Outlays..................        0   10,427   12,817    2,905    1,142      641    27,932
Spending Under S. 1451:
    Estimated Authorization Level..............   13,360   13,289   13,614      153      152      152    40,720
    Estimated Outlays..........................   15,775   16,997   17,937    7,312    5,258    4,682    67,961

                                                 DIRECT SPENDING

Spending Under Current Law:
    Estimated Budget Authority\c\..............    3,870    3,870    3,870    3,870    3,870    3,870    23,220
    Estimated Outlays..........................       50       50       50       50       50       50       300
Proposed Changes:
    Estimated Budget Authority.................        0      180      299      294      280      180     1,233
    Estimated Outlays..........................        0        0       15       15        3     -100       -67
Spending Under S. 1451:\d\
    Estimated Authorization Level..............    3,870    4,050    4,169    4,164    4,150    4,050    24,453
    Estimated Outlays..........................       50       50       65       65       53      -50       233

                                               CHANGES IN REVENUES

Estimated Revenues:\e\                                 0       -1       16        7      -12      -16        -6

                      NET IMPACT OF CHANGES IN DIRECT SPENDING AND REVENUES ON THE DEFICIT

Net Increase or Decrease (-) in the Deficit            0        1       -1        8       15      -84      -61
----------------------------------------------------------------------------------------------------------------
\a\The 2009 level is the amount appropriated for that year for FAA operations; facilities and equipment;
  research, engineering, and development; essential air service; and other aviation-related activities. The 2010-
  2014 levels reflect amounts authorized to be appropriated under current law for essential air service.
\b\Estimated outlays under current law are from amounts appropriated for 2009 and previous years for FAA
  operations; facilities and equipment; research, engineering, and development; essential air service; and other
  aviation-related activities as well as discretionary outlays from the obligation limitations for the Airport
  Improvement Program.
\c\Budget authority for the Airport Improvement Program is provided as contract authority, a mandatory form of
  budget authority; however, outlays from that contract authority are subject to limitations on obligations
  specified in annual appropriation acts and are therefore considered discretionary.
\d\Enacting S. 1451 would increase direct spending by $283 million over the 2010-2019 period (see Table 2 for
  annual effects through 2019).
\e\Enacting S. 1451 would reduce revenues by $150 million over the 2010-2019 period (see Table 2 for annual
  effects through 2019).
Notes: FAA = Federal Aviation Administration.

    Air Navigation Facilities and Equipment. S. 1451 would 
authorize appropriations totaling $7.1 billion over the 2010-
2011 period for facilities and equipment--primarily 
infrastructure and systems for communication, navigation, and 
radar surveillance related to air travel. (Public Law 111-5 and 
Public Law 111-8 provided a total of $2.9 billion for 2009 for 
those activities.) Assuming appropriation of the amounts 
authorized under S. 1451, CBO estimates that outlays would 
increase by about $7.1 billion over the 2010-2014 period.
    By authorizing appropriations for air navigation facilities 
and equipment over the 2010-2011 period, S. 1451 would 
authorize adjustments to contract authority for the airport 
improvement program in those years. Current law provides for 
increases to contract authority (a mandatory form of budget 
authority) for that program in any year that the amounts 
authorized to be appropriated for facilities and equipment 
exceed amounts actually provided in appropriation acts for such 
activities. Any such changes authorized under S. 1451 and 
triggered by annual appropriation acts would be considered 
changes in direct spending and are discussed later in this 
estimate (see the following section entitled ``Direct 
Spending'').
    Airport Improvement Program (AIP). S. 1451 would provide 
$8.1 billion in contract authority (a mandatory form of budget 
authority) over the 2010-2011 period for the Airport 
Improvement Program. (Under current law, the FAA has about $3.8 
billion in contract authority available through 2009.) Through 
that program, the FAA provides grants to airports for projects 
to enhance safety and increase airports' capacity for 
passengers and aircraft. Outlays from AIP contract authority 
are controlled by limitations on obligations set in annual 
appropriation acts and are therefore considered discretionary.
    CBO estimates that enacting this provision would increase 
contract authority over levels assumed in CBO's current 
baseline by $460 million over the 2010-2011 period that is 
specifically covered under S. 1451 and by $280 million annually 
thereafter. (See the ``Direct Spending'' section of this 
estimate for a discussion of the budgetary treatment of AIP 
contract authority under the budget resolution baseline and for 
purposes of projecting costs under proposed legislation.)
    In total, assuming that obligation limitations for AIP 
spending, as set forth in annual appropriation acts, are equal 
to the levels of contract authority projected under S. 1451, 
CBO estimates that implementing this provision would increase 
discretionary spending by about $1.1 billion over the 2010-2014 
period, with additional spending occurring in later years. That 
amount includes about $900 million in spending from additional 
contract authority under the bill. It also includes nearly $200 
million in accelerated outlays from contract authority assumed 
in the current baseline that CBO estimates would be spent 
faster under S. 1451, largely due to provisions that would 
increase the maximum federal share of certain airport projects 
and expand eligibility criteria for AIP grants.
    Research, Engineering, and Development. S. 1451 would 
authorize appropriations totaling $406 million over the 2010-
2011 period for aviation-related research activities. (Public 
Law 111-8 appropriated $171 million for FAA's research programs 
for 2009.) Assuming appropriation of the authorized amounts, 
CBO estimates that resulting outlays would total $406 million 
over the 2010-2014 period.
    Essential Air Service (EAS). S. 1451 would permanently 
increase, from $77 million to $125 million a year, the amount 
authorized to be appropriated for the Essential Air Service 
program. Under that program, which received $73 million for 
2009 under Public Law 111-8, DOT makes payments to air carriers 
that provide air service to certain rural communities. CBO 
estimates that fully funding EAS under S. 1451 would require 
additional appropriations totaling $240 million over the 2010-
2014 period and result in outlays totaling $230 million over 
the next 5 years, with additional outlays occurring after 2014.
    Other Provisions. CBO estimates that implementing other 
provisions of S. 1451 would require appropriations totaling 
$223 million over the 2010-2014 period. That amount includes:
           $125 million to provide financial support 
        for projects related to modernizing the air traffic 
        control system, particularly the installation of 
        certain avionics equipment on aircraft;
           $70 million for the Small Community Air 
        Service Development Program;
           $10 million for the Department of the 
        Interior to develop a plan for managing air tours 
        within national parks; and
           $18 million for various studies, reports, 
        and activities to be carried out by the FAA, DOT, and 
        other agencies.
    Assuming appropriation of amounts specified and estimated 
to be necessary, CBO estimates that fully funding those 
activities would cost $183 million over the 2010-2014 period.

Direct spending

    CBO estimates that enacting S. 1451 would reduce net direct 
spending by $67 million over the 2010-2014 period and increase 
it by $283 million over the 2010-2019 period. Those changes, 
presented in detail in Table 2, would result from provisions 
that would provide additional contract authority for the AIP, 
increase direct spending of overflight fees, and extend the 
FAA's authority to sell certain insurance.

                                             TABLE 2.--EFFECTS ON DIRECT SPENDING AND REVENUES UNDER S. 1451
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                 By fiscal year in millions of dollars--
                                               ---------------------------------------------------------------------------------------------------------
                                                 2010   2011    2012   2013     2014     2015     2016     2017     2018     2019   2009-2014  2009-2019
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               CHANGES IN DIRECT SPENDING

AIP Contract Authority:\a\
    Estimated Budget Authority................    180     280    280     280      280      280      280      280      280      280     1,300      2,700
    Estimated Outlays.........................      0       0      0       0        0        0        0        0        0        0         0          0
Aviation War Risk Insurance:
    Estimated Budget Authority................      0       0      0       0     -100     -110      -50       30      240      240      -100        250
    Estimated Outlays.........................      0       0      0       0     -100     -110      -50       30      240      240      -100        250
Increased Spending of Overflight Fees:
    Estimated Budget Authority................      0      19     14       0        0        0        0        0        0        0        33         33
    Estimated Outlays.........................      0      15     15       3        0        0        0        0        0        0        33         33
    Total Changes:
        Estimated Budget Authority............    180     299    294     280      180      170      230      310      520      520     1,233      2,983
        Estimated Outlays.....................      0      15     15       3     -100     -110      -50       30      240      240       -67        283

                                                                   CHANGES IN REVENUES

Passenger Facility Fees.......................     -1      -3     -7     -12      -16      -20      -24      -29      -33      -37       -39       -183
Overflight Fees...............................      0      19     14       0        0        0        0        0        0        0        33         33
                                               ---------------------------------------------------------------------------------------------------------
    Total Estimated Revenues..................     -1      16      7     -12      -16      -20      -24      -29      -33      -37        -6       -150

                                         NET IMPACT ON THE DEFICIT FROM CHANGES IN DIRECT SPENDING AND REVENUES

Net Increase or Decrease (-) in the Deficit...      1      -1      8      15      -84      -90      -26       59      273      277       -61       433
--------------------------------------------------------------------------------------------------------------------------------------------------------
\a\Budget authority for the Airport Improvement Program is provided as contract authority, a mandatory form of budget authority; however, outlays from
  that contract authority are subject to limitations on obligations specified in appropriation acts and are therefore discretionary.
Note: AIP = Airport Improvement Program.

    Airport Improvement Program Contract Authority. CBO 
estimates that enacting S. 1451 would result in $2.7 billion in 
additional contract authority for the AIP over the 2010-2019 
period. (Under current law, the FAA has about $3.8 billion in 
contract authority available through 2009.) As previously 
noted, spending from contract authority is controlled by 
obligation limitations specified in annual appropriation acts. 
Thus, outlays of the AIP are considered discretionary.
    Baseline Treatment of AIP Contract Authority. Pursuant to 
rules that govern the calculation of CBO's baseline, funding 
for certain expiring programs--such as contract authority for 
AIP--is assumed to continue for budget projection purposes. 
Consistent with that practice, CBO's baseline assumes that AIP 
contract authority over the 2010-2019 period will remain at the 
2009 level of about $3.8 billion per year.
    Net Increases to Contract Authority. Under S. 1451, AIP 
contract authority would total $4.0 billion in 2010 and 
increase to $4.1 billion in 2011. Consistent with CBO's 
methodology for projecting contract authority under proposed 
legislation, we assume that contract authority for AIP would 
continue after 2011 and would remain at $4.1 billion annually 
over the 2012-2019 period. In total, CBO estimates that 
contract authority under S. 1451 would exceed levels of 
contract authority already assumed in the CBO baseline by $2.7 
billion over the 2010-2019 period.
    Potential Adjustments to AIP Contract Authority. Public Law 
106-181, the Wendell H. Ford Aviation Investment Reform Act for 
the 21st Century Act, enacted in 2000, created a permanent 
mechanism that provides for an increase to AIP contract 
authority in any year that the amount authorized to be 
appropriated for air navigation and facilities exceeds the 
amount provided for such activities in an appropriation act. By 
authorizing appropriations for facilities and equipment over 
the 2010-2011 period, S. 1451--in conjunction with that 
provision of current law--would authorize adjustments to AIP 
contract authority for those years. Any adjustment authorized 
under this legislation, once triggered by annual appropriation 
acts, would constitute new direct spending authority. All 
spending for AIP--including spending from such adjustments--
would remain subject to obligation limitations established in 
appropriation acts. Although S. 1451 could result in additional 
AIP contract authority of as much as $7.1 billion over the 
2010-2011 period if no appropriations were provided for air 
navigation facilities and equipment, CBO assumes that 
appropriations will equal the amounts authorized by the bill; 
thus, we project no additional increases to AIP contract 
authority under S. 1451.
    Aviation War Risk Insurance. Under current law, the FAA 
offers a program for commercial air carriers and aircraft and 
engine manufacturers that, in exchange for a premium payment, 
insures policyholders against liabilities arising from losses 
caused by terrorist events. The FAA also offers a nonpremium 
insurance program to air carriers that participate in the Civil 
Reserve Air Fleet (CRAF). The FAA's authority to operate both 
of those programs is scheduled to expire on December 31, 2013. 
S. 1451 would extend that authority through October 2017. CBO 
estimates that extending the CRAF program through that time 
would have no significant budgetary impact; however, extending 
the FAA's authority to offer insurance for commercial air 
carriers and manufacturers through fiscal year 2017 would 
increase net direct spending by $250 million over the 2014-2019 
period. Over the long run, we estimate that extending the 
authority to operate the program would result in additional net 
costs to the federal government after 2019.
    Program Extension Through 2017. For this estimate, CBO 
assumes that the FAA would continue to offer commercial 
aviation insurance at rates that would not fully offset the 
government's cost of providing that coverage. Initial savings 
under S. 1451 would result because the FAA would collect 
premiums in full when coverage is sold, while payments for 
expected losses would likely begin slowly and occur over 
several years. Based on information from the FAA about current 
insurance terms and rates, CBO estimates that expected losses 
for claims would total $850 million over the 2014-2019 period 
and about $750 million in later years for a total of roughly 
$1.6 billion over time. We further estimate that increased 
offsetting receipts from premiums (a credit against direct 
spending) would total $600 million over the 2014-2017 period. 
Thus, while we estimate that extending the commercial insurance 
program through 2017 would increase net direct spending by $250 
million over the 2014-2019 period, we also estimate the 
program's net costs over a longer time period would total 
nearly $1.0 billion.
    CBO cannot predict how much damage terrorists might cause 
in any specific year. Instead, our estimate of the cost of 
insurance coverage under S. 1451 represents an expected value 
of payments from the program--a weighted average that reflects 
the probability of various outcomes, from zero damages up to 
very large damages due to possible future terrorist attacks. 
The expected value can be thought of as the amount of an 
insurance premium that would be necessary to fully offset the 
risk of providing this insurance. CBO's estimate of the 
expected cost for S. 1451 is based on private-sector premiums 
for terrorism insurance that have been adjusted for differences 
in costs faced by private insurance firms that are not borne by 
the federal government. While this cost estimate reflects our 
best judgment on the basis of available information, costs are 
a function of inherently unpredictable future terrorist 
attacks. As such, actual costs could fall anywhere within an 
extremely broad range.
    Increased Spending of Overflight Fees. Under current law, 
DOT has authority to spend, without further appropriation, 
revenues from overflight fees paid by air carriers to reimburse 
the FAA for the costs of providing navigational support to 
flights that neither take off nor land in the United States. As 
discussed below, JCT estimates that enacting S. 1451 would 
increase revenues from such fees starting in fiscal year 2011. 
CBO estimates that resulting increases in direct spending would 
total $33 million over the 2010-2019 period. Under the bill, 
such spending would support activities related to enhancing air 
service to rural communities.

Revenues

    JCT estimates that enacting S. 1451 would reduce revenues 
by $6 million over the 2010-2014 period and $150 million over 
the 2010-2019 period. The estimated changes stem from 
provisions related to passenger facility fees and overflight 
fees.
    Passenger Facility Fees. Under current law, airport 
agencies may collect, subject to DOT approval, fees of up to 
$4.50 per passenger to fund airport infrastructure programs. 
(Such fees are collected and spent by airport agencies and are 
not included in the federal budget.) S. 1451 would direct the 
Secretary of Transportation to establish a pilot program to 
allow up to six airport agencies to test alternate means of 
collecting passenger fees. Participating airports would be 
permitted to charge fees in excess of the statutory limit. JCT 
expects that the proposed changes would increase revenues to 
airports from such passenger facility fees, subsequently lead 
to increased tax-exempt financing for airport construction and 
related projects, and consequently, reduce federal revenues. 
JCT estimates that federal revenue losses would total $39 
million over the 2010-2014 period and $183 million over the 
next 10 years
    Overflight Fees. S. 1451 would direct the FAA, through an 
expedited rulemaking process, to increase fees for certain 
navigational services provided for flights that neither take 
off nor land in the United States, known as overflight fees. 
Such fees are generally paid by foreign air carriers and are 
recorded as revenues. Under current law, JCT expects the FAA 
would not increase such fees before 2012. JCT estimates that 
the agency's costs to provide support for overflights exceeds 
revenues from fees by about $19 million annually. The expedited 
rulemaking would generate increased revenues for fiscal years 
2011 and 2012. JCT estimates that those resulting increases in 
revenues would total $33 million over the 2011-2012 period. (As 
discussed earlier, those increased revenues would result in 
corresponding increases in direct spending for certain 
activities related to enhancing air service to rural 
communities.)
    Intergovernmental and private-sector impact: S. 1451 
contains intergovernmental and private-sector mandates as 
defined in UMRA because it would impose new requirements on 
both public and private entities that own aircraft, 
helicopters, or airports. The bill also would require state and 
local governments to provide the FAA with access to data on 
criminal activity. CBO estimates that the aggregate cost of 
intergovernmental mandates in the bill would fall below the 
annual threshold established in UMRA ($69 million in 2009, 
adjusted annually for inflation). In addition, the bill would 
impose private-sector mandates on owners and operators of 
certain aircraft, and commercial air carriers. Based on 
information from the FAA and industry sources, CBO estimates 
that the aggregate cost of complying with the private-sector 
mandates in the bill would exceed the annual threshold 
established in UMRA ($139 million in 2009, adjusted annually 
for inflation).

Mandates that apply to both public and private entities

    Next Generation Air Transportation System (NextGen) 
Equipment Requirements. Section 315 would require owners of 
aircraft to install two different types of NextGen equipment on 
their aircraft, one by 2015 and the other by 2018. According to 
industry sources, the equipment costs would average at least 
$4,000 per aircraft, and approximately 240,000 aircraft could 
be affected. CBO expects that the cost to comply with the 
mandate would be largest in the year before each of the 
equipment types is required to be installed. Therefore, the 
cost to private entities to comply with this mandate could 
exceed the threshold in at least one of those years. Because of 
the relatively small number of public aircraft affected, CBO 
estimates the cost to state and local governments would be 
minimal.
    Helicopter Emergency Medical Service Safety Requirements. 
Section 507 would require operators of helicopters and fixed-
wing aircraft for emergency medical service to comply with 
certain operating procedures whenever a medical crewmember is 
on board. It also would require such helicopters and fixed-wing 
aircraft acquired after the bill's enactment to have an 
operational terrain awareness and warning system that meets FAA 
specifications. The bill would require flight operators to use 
a standardized checklist of risk evaluation factors and 
standardized dispatch procedures (both to be developed by the 
FAA). In addition, the bill would require flight data and 
cockpit voice recorders on all helicopters and fixed-wing 
aircraft used for emergency medical services. Because the 
specific standards have not been established by the FAA and 
because of the large number of private aircraft that could be 
affected by those standards, the incremental costs that would 
be incurred by private-sector entities to comply with those 
standards is uncertain. Due to the small number of public 
entities affected by the requirements, however, CBO estimates 
that the costs to state and local governments would be small.
    Procedural Requirements for PFC Charges. Section 201 would 
require airports that use passenger facility charges to submit 
annual reports of their activities. The bill also would reduce 
the number of activities for which airport operators could 
impose such charges. CBO estimates that the costs of the new 
requirements would be small relative to the annual threshold.
    Contingency plans. Section 401 would require certain 
airport operators to provide DOT contingency plans for 
emergency circumstances that ground aircraft. Depending on how 
many airports have to submit plans, CBO estimates that the 
costs to state and local governments would range from $5 
million to $10 million in the first year of implementation. 
According to the FAA, only a small number of private airports 
would be subject to the planning requirement. CBO, therefore, 
estimates that costs to private airports would be small.
    Pilot History Reporting Requirements. Section 551 would 
require air carriers and public entities to submit to the FAA 
the flight history of pilots they employ. According to industry 
sources, air carriers currently keep flight histories in a 
database used by the air carrier industry. This information 
could easily be transmitted to the FAA, and therefore, the 
mandate would impose minimal costs, CBO estimates.

Mandates that apply to public entities only

    Access to Criminal History Records. Section 505 would give 
the FAA the right to access criminal justice data maintained by 
the states. Requiring that access would be an intergovernmental 
mandate as defined in UMRA because state and local governments 
would be required to comply with requests for information from 
the FAA. Although we cannot predict the extent to which the FAA 
would request such access, CBO estimates that the additional 
costs to state, local, and tribal governments of complying 
would be small.

Mandates that apply to private entities only

    S. 1451 contains several private-sector mandates as defined 
in UMRA. Those mandates include a prohibition on operating 
certain aircraft not in compliance with low-noise criteria, and 
requirements on air carriers related to airline employees and 
passenger service.
    Prohibition on aircraft noise levels below stage 3. Section 
710 would prohibit, with certain exemptions, the operation of 
civil aircraft weighing 75,000 pounds or less in the 48 
contiguous states if the aircraft does not comply with stage-3 
noise levels. (The FAA classifies aircraft into four stages 
based on measurements of noise level: Stage-3 is one of the 
quietest of those stages.) The prohibition would take effect 5 
years after the date of enactment. According to industry 
sources, compliance could require engine modifications on 
existing aircraft when possible, or decommissioning of aircraft 
that cannot be adequately modified. Those sources estimate the 
total cost of bringing existing aircraft into compliance could 
range from a low of $300 million to more than $1 billion 
depending on the technology used. CBO expects that the direct 
cost to comply with the mandate would be largest in the year 
before the prohibition would take effect.
    Airline Employee and Service Requirements. The bill would 
impose several new requirements on air carriers related to 
airline employees and passenger service. Based on information 
from industry sources, CBO expects that none of those mandates 
would impose significant additional costs on air carriers 
relative to UMRA's threshold.
    Mandates related to airline employees would require air 
carriers to:
           Hire only maintenance workers for commercial 
        aircraft who are certified and have submitted to a drug 
        and alcohol test;
           Implement FAA standards that would help 
        combat flight crew fatigue;
           Comply with limitations on hiring or 
        contracting with safety inspectors previously employed 
        by the FAA;
           Provide training for flight attendants and 
        gate attendants that addresses serving alcohol, dealing 
        with disruptive passengers, and recognizing intoxicated 
        persons; and
           Hire only flight attendants on flights into 
        the United States that can read, speak, and write 
        English.
    Mandates related to airline passenger service and safety 
would require air carriers to:
           Allow passengers to deplane if 3 hours have 
        elapsed since the cabin doors were closed and the 
        aircraft has not departed or if the aircraft has landed 
        and has been on the ground for 3 hours;
           Develop and submit reports related to 
        certain emergency contingencies and diverted or 
        cancelled flights;
           Submit to random, unannounced, on-site 
        inspections at least once a year;
           Develop a Safety Management System under the 
        standards established by the FAA;
           Allow passengers to safely transport musical 
        instruments as carry-on or checked baggage without 
        charging an additional fee, or allow the instrument to 
        be carried in seat next to the owner if the owner has 
        purchased an additional seat; and
           Publish and disclose to customers 
        information on chronically delayed flights and fees 
        passengers might incur when the flight is being booked.

Other impacts

    The bill would benefit public and private airports by 
authorizing grants for planning, development, noise mitigation, 
and other initiatives. Any costs those entities incur to comply 
with grant requirements would result from complying with 
conditions of federal assistance.
    Previous CBO estimate: On April 22, 2009, CBO transmitted a 
cost estimate for H.R. 915, the FAA Reauthorization Act of 
2009, as ordered reported by the House Committee on 
Transportation and Infrastructure on April 3, 2009. Many 
provisions of S. 1451 are similar to H.R. 915.
    Both bills would authorize appropriations for major FAA 
programs. Differences in our estimates of spending subject to 
appropriation reflect differences in amounts authorized to be 
appropriated to the FAA. The estimate of spending under H.R. 
915 is higher, primarily because it would authorize one 
additional year of funding to continue FAA programs through 
2012.
    In total, S. 1451 would result in a greater increase in net 
direct spending over the 2010-2014 period than H.R. 915, 
primarily because of differences in estimates of provisions to 
extend FAA's authority to offer commercial aviation war-risk 
insurance. While S. 1451 would extend that authority only 
through fiscal year 2017, H.R. 915 would extend it through 
December 2019 thereby generating additional income from 
premiums that would help to offset the program's cost during 
the 2014-2019 period reflected in this cost estimate.
    Under both H.R. 915 and S. 1451, changes to federal 
revenues would be driven primarily by provisions that JCT 
expects would increase levels of passenger fees charged by 
airport agencies. Compared to estimated fees under H.R. 915, 
JCT estimates that increased passenger fees under S. 1451, and 
subsequent increases in tax-exempt financing, would be less.
    The House bill contains several private-sector mandates 
that are similar to those contained in S. 1451, including the 
prohibition on operating aircraft that do not meet certain 
noise standards and requirements on air carriers related to 
employees and passenger service. The House bill also contains a 
mandate that is not included in S. 1451 that would impose new 
standards on public and private airports for aircraft rescue 
and firefighting. CBO determined that the aggregate cost of 
mandates in the House bill would exceed UMRA's annual 
thresholds for both intergovernmental and private-sector 
mandates.
    Estimate prepared by: Federal Costs: FAA spending--Megan 
Carroll, Revenues--Grant Driessen; Impact on State, Local, and 
Tribal Governments: Ryan Miller; Impact on the Private Sector: 
Patrice Gordon.
    Estimate approved by: Theresa Gullo, Deputy Assistant 
Director for Budget Analysis; Frank J. Sammartino, Acting 
Assistant Director for Tax Analysis.

                      Regulatory Impact Statement

  In accordance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee provides the 
following evaluation of the regulatory impact of the 
legislation as reported:

                       NUMBER OF PERSONS COVERED

  The reported bill would reauthorize existing FAA activities, 
thus the number of persons covered should be consistent with 
the current level of individuals impacted under existing FAA 
activities.

                            ECONOMIC IMPACT

  S. 1451 is expected to have a positive impact on the U.S. 
economy. The air transportation system, which is a key 
component of the nation's economy, is experiencing growing 
congestion and delay issues. Provisions in this legislation aim 
to ensure the air transportation system is modernized in a 
timely, efficient, and effective manner to resolve congestion 
and delay, and meet the growing demand on the aviation system.

                                PRIVACY

  The reported bill is not expected to have any impact on the 
privacy rights of individuals.

                               PAPERWORK

  It is not anticipated that there will be a major increase in 
paperwork burdens resulting from the enactment of S. 1451.

                   Congressionally Directed Spending

  In compliance with paragraph 4(b) of rule XLIV of the 
Standing Rules of the Senate, the Committee provides that no 
provisions contained in the bill, as reported, meet the 
definition of congressionally directed spending items under the 
rule.

                      Section-by-Section Analysis


Sec. 1. Short title; table of contents.

  This section would provide that the legislation may be cited 
as the ``FAA Air Transportation Modernization and Safety 
Improvement Act'' and would set forth the table of contents for 
the bill.

Sec. 2. Amendments to title 49, United States Code.

  This section would stipulate that, except as otherwise 
expressly provided, all amendments in S. 1451 are made to title 
49 of the USC.

Sec. 3. Effective date.

  This section would require the provisions of the bill to take 
effect on the date of enactment unless expressly provided 
otherwise.

                        TITLE I--AUTHORIZATIONS

Sec. 101. Operations.

  This section would provide the authorization levels for the 
FAA's operations account at an amount of $9.336 billion in FY 
2010 and $9.62 billion in FY 2011.

Sec. 102. Air navigation facilities and equipment.

  This section would provide the authorization levels for the 
FAA's air navigation F&E account, which funds the maintenance 
and modernization of the ATC system. The F&E account would be 
authorized at $3.5 billion in FY 2010, of which $500 million 
would be derived from the newly-created Air Traffic System 
Modernization Account (ATSMA); and $3.6 billion in FY 2011, of 
which $500 million would be derived from the ATSMA.

Sec. 103. Research and development.

  This section would provide the authorization levels for the 
FAA's research and development account at an amount of $200 
million in FY 2010 and $206 million in FY 2011. It would 
require the FAA to establish a grant program to promote 
aviation research at undergraduate and technical colleges.

Sec. 104. Airport planning and development and noise compatibility 
        planning and programs.

  This section would provide the authorization levels for the 
FAA's AIP funding at an amount of $4.0 billion in FY 2010 and 
$4.1 billion in FY 2011.

Sec. 105. Other aviation programs.

  This section would extend the budgetary treatment for the 
FAA's accounts through 2011.

Sec. 106. Delineation of Next Generation Air Transportation System 
        projects.

  This section would require the FAA to specifically identify 
projects whose primary purpose is directly related to the 
NextGen initiative under the Plans and Policy section of 49 
United States Code (USC) 44501.

Sec. 107. Funding for administrative expenses for airport programs.

  This section would authorize the administrative expenses for 
the FAA's airports program at a level of $94 million in FY 2010 
and $98 million in FY 2011.

                     TITLE II--AIRPORT IMPROVEMENTS

Sec. 201. Reform of passenger facility charge authority.

  This section would streamline and simplify the administrative 
requirements associated with the PFC, while still retaining 
audit controls and FAA project and expenditure oversight. This 
section would impose additional requirements on any airport 
authority wishing to increase its PFC or wishing to impose a 
PFC to finance an intermodal ground facility.

Sec. 202. Passenger facility charge pilot program.

  This section would require the Secretary to establish and 
conduct a pilot program in which an airport may impose a PFC 
without regard to dollar amount limitations if that airport 
collects the charge from a passenger at the airport, via the 
Internet, or in any other reasonable manner. The same 
eligibility and oversight criteria applied under the regular 
PFC authority would still apply to the use of the revenue in 
this program. The program would be limited to six airports, and 
the airport may not collect the charge through an air carrier. 
It would also require the GAO to conduct a study of potential 
alternative means of PFC collection.

Sec. 203. Amendments to grant assurances.

  This section would make two improvements to required grant 
assurances (49 USC 47107) for AIP projects. First, a limited 
exception to a current requirement would permit an airport 
owner to use AIP entitlement funds to move or replace a 
facility when the need to relocate or replace it was beyond the 
owner's control (such as new design standards that render the 
facility a safety hazard). The section addresses the 
disposition of proceeds from the sale of land that an airport 
has acquired for a noise compatibility purpose, but for which 
the airport no longer needs for that purpose. Existing law 
would require that the proceeds from the sale proportional to 
the Federal government's share of the land acquisition be 
returned to the Trust Fund. This section would allow the 
Secretary to permit the government's share of these proceeds to 
be used at the airport for other purposes, giving priority, in 
descending order, to the following: (1) reinvestment in another 
noise compatibility project at the airport; (2) reinvestment in 
another environmentally related project at the airport; (3) 
reinvestment in another otherwise eligible AIP project at the 
airport; (4) transfer to another public airport for a noise 
compatibility project; and, last, (5) payment to the Trust 
Fund.

Sec. 204. Government share of project costs.

  Currently the government share of AIP grants to large and 
medium hub airports is generally 75 percent; for small hubs the 
government share is 95 percent. This section would establish a 
special rule to allow for small hub airports that have 
increased operations and therefore are being reclassified as 
medium hub airports to retain their eligibility for two years 
at up to a 95 percent government share of projects costs, in an 
effort to ease such a facility's transition to the new status.

Sec. 205. Amendments to allowable costs.

  This section would consolidate two provisions that indicate 
which costs for terminal development are allowable under the 
AIP program. It would move a provision (49 USC 47110(d)) in 
current law (relating to terminal development costs) to 49 USC 
47119 without substantive change. Having terminal development 
related provisions in both 49 USC 47110 and 47119 has created 
confusion and led to problems with interpretation.
  A new subsection would be added to 49 USC 47110 as subsection 
(d) relating to the relocation of airport-owned facilities, 
making such relocation an allowable cost if the sponsor must 
move a facility because of design standards beyond the 
sponsor's control. This is similar to a change made to the 
grant assurances provision in section 203.
  Finally, a conforming change would be made to subsection (f) 
to conform a cross-reference to the military airport program, 
and to subsection (h) to refer to the expanded definition of 
revenue producing support facilities added to 49 USC 47102.
  This section would also allow the FAA, after analyzing the 
conclusions of ongoing studies, to permit the purchase of bird-
detecting radar systems as an allowable airport development 
cost.

Sec. 206. Sale of private airport to public sponsor.

  This section would amend 49 USC 47133 (restriction on use of 
revenue) to facilitate the sale of a private airport, which in 
the past received AIP funds for improvement projects, to a 
public entity such as a State or local government. If a private 
owner wishes to dispose of the airport, a sale to a public 
sponsor usually benefits the airport through more stable and 
reliable ownership. Under current law, if an owner of a private 
airport sells to a public entity, the proceeds of the sale must 
be treated as airport revenue with all the restrictions 
attached to that characterization. Removal of such treatment 
would facilitate these sales without undermining revenue 
diversion protections. This amendment would be applicable to 
grant assistance provided to private airports back to October 
1, 1996.

Sec. 207. Government share of certain air project costs.

  This section would extend a provision included in Vision 100 
that sets the Federal share for certain projects at small 
airports at 95 percent.

Sec. 208. Miscellaneous amendments.

  This section would make a number of amendments to chapter 471 
to update provisions, remove outdated or obsolete language, or 
clarify provisions, as follows:
  Subsection (a) (technical Changes to the National Plan of 
Integrated Airport Systems (NPAIS)) would make technical 
changes to 49 USC 47103 in order to remove obsolete language 
and update the provision to conform to what the FAA is 
currently including in the NPIAS. For example, the NPIAS now 
works with only categories of airports so the language in 49 
USC 47103(a) that references ``each airport'' is deleted in 
favor of a reference to the ``airport system''. Similarly, 
further amendments to 49 USC 47103(a) reflect that the NPIAS 
does not try to forecast trends in other transportation 
sectors, but instead forecasts how airports connect to other 
modes of transportation (e.g. an airport and a transit system). 
49 USC 47103(b) is amended to delete two references that are 
obsolete: (1) the NPIAS does not consider how the height of 
structures may reduce safety and capacity (that is done 
separately under FAA Order 7460, which requires coordination 
for any construction of structures over 200 feet or within 
20,000 feet of an airport); and (2) the NPIAS no longer takes 
into account Short/Takeoff and Landing operations, etc. (which 
is an outdated requirement). Finally, in subsection 47103(d), 
the language would be clarified to state that the NPIAS must be 
published every 2 years, not just the ``status'' of the plan.
  Subsection (b) (update of veterans preference definition) 
would add veterans from the current Afghanistan/Iraq conflict 
to the definition of those veterans eligible for employment 
preference on AIP projects. This provision would also give 
preference to small businesses owned by disabled veterans for 
carrying out an airport development project.
  Subsection (c) (annual report) would modify the requirements 
for the annual AIP program report to conform to practice. The 
annual date of the AIP program report is moved from April 1 to 
June 1, and some content changes are made.
  Subsection (d) (sunset of program) would sunset the authority 
at the end of FY 2008 since the activities described in this 
section have been assumed by the DHS.
  Subsection (e) (correction to emission credits provision) 
would correct an inaccurate cross-reference in section 47139 
enacted by Vision 100, under which an airport is able to 
``bank'' credits when the airport does air quality work that is 
not required, but is ``surplus''. Section 47139, however, 
references a provision (49 USC 47103(3)(F)), which is for 
required air quality work, not surplus work.
  Subsection (f) (correction to surplus property authority) 
would remove restrictive language added by Vision 100 that was 
intended to address concerns over disposal of land due to 
particular military base closures occurring at that time. 
Removal of the obsolete restriction will aid FAA's effort to 
support the conversion of military airports to civilian use.
  Subsection (g) (airport capacity benchmark reports; 
definition of joint use airport) would provide for a reference 
to updated versions of the FAA's Airport Capacity Benchmark 
reports (not just the original 2001 Report). Also, for purposes 
of subchapter III of chapter 471 (aviation development 
streamlining), this section would provide a definition of 
``joint use airport'', as meaning a DOD airport that has both 
military and civil aircraft operations.
  Subsection (h) (use of apportioned amounts) would change the 
apportioned amount for noise compatibility programs, noise 
mitigation projects, and other airport developments.
  Subsection (i) (use of previous fiscal year's apportionment) 
would permit the DOT Secretary to apportion to an airport 
sponsor in a fiscal year an amount equal to the amount 
apportioned to the airport sponsor in the previous fiscal year, 
if the airport (1) had more than 10,000 passenger boardings 
from scheduled and unscheduled air service combined in that 
fiscal year or (2) had 10,000 passenger boardings through 
scheduled service in calendar year (CY) 2007. This provision 
would also continue a special apportionment for airports that 
remain affected by the decrease in passengers following the 
terrorist attacks of September 11, 2001.
  Subsection (j) (mobile refueler parking construction) would 
make the construction of parking pads for mobile refuelers used 
while fueling an aircraft eligible for AIP funding at non-
primary airports.
  Subsection (k) (discretionary fund) would ensure that the 
discretionary fund under 49 USC 47114 maintains a balance of at 
least $520,000,000.

Sec. 209. State block grant program.

  This section would codify current practice that State 
participants in the AIP State Block Grant program (SBGP) have 
the responsibility and authority to comply with applicable 
environmental requirements for projects at non-commercial 
service airports within the purview of the SBGP. The FAA 
administers the SBGP by authorizing participating States once a 
year to receive a block of funds for any eligible non-primary 
airport project. Currently, eight States participate in the 
program (Illinois, Michigan, Missouri, North Carolina, 
Pennsylvania, Tennessee, Texas, and Wisconsin). This section 
would also make a minor change to 49 USC 47128(a) by replacing 
the term ``regulations'' with ``guidance'' because the FAA has 
issued guidance in the form of the AIP Handbook, 5100.38, to 
implement its airport improvement program. This is an 
administrative change and does not impact the SBGP or the 
Secretary's ability to place requirements on the States under 
49 USC 47128.

Sec. 210. Airport funding of special studies or reviews.

  This section would broaden authority, under 49 USC 47173, to 
include voluntary agreements with airports that request FAA 
support to conduct special environmental studies that have 
research and development aspects for ongoing environmental 
reviews.

Sec. 211. Grant eligibility for assessment of flight procedures.

  This section would encourage the implementation of 
environmentally-beneficial aircraft flight procedures at 
airports by making the environmental review of airport-proposed 
procedures that are approved by the FAA AIP eligible 
(procedures approved under 14 CFR part 150, Airport Noise 
Compatibility Planning). This section would also authorize the 
FAA to accept funds, including AIP grant funds (also PFC 
revenue, which follows AIP eligibility), from an airport 
sponsor to hire staff or obtain services in order to provide 
timely environmental reviews for such flight procedures. This 
is similar to authority that the FAA has under 49 USC 47173 for 
environmental activities related to AIP projects.

Sec. 212. Safety-critical airports.

  This section would make current or former military airports 
eligible to be considered for a grant under 49 USC 47118 if 
that airport is found to be critical to the safety of trans-
oceanic air traffic.

Sec. 213. Environmental mitigation demonstration pilot program.

  This section would authorize the Secretary of Transportation 
to carry out up to six environmental mitigation projects at 
public-use airports and make grants under special apportionment 
funding for these demonstrations. To be eligible for the pilot 
program, an airport would be public with priority consideration 
given to projects that will achieve the greatest reductions in 
aircraft noise, airport emissions, or airport water quality 
impacts. The Federal government would be limited to providing 
50 percent of the cost for the projects and the Federal share 
would be limited to $2,500,000 per project.

Sec. 214. Allowable project costs for airport development program.

  This section would amend what types of prior costs are 
allowable under the airport development program to include 
costs incurred in anticipation of severe weather.

Sec. 215. Glycol recovery vehicles.

  This section would amend the definition of airport 
development under the Airport Development Program to ensure 
that the acquiring of glycol recovery vehicles is eligible for 
funding.

Sec. 216. Research improvement for aircraft.

  This section would expand the type of research that the FAA 
Administrator may conduct or supervise to include research to 
support programs designed to reduce gases and particulates 
emitted by aircraft.

Sec. 217. United States Territory minimum guarantee.

  This section would allow the FAA Administrator to provide AIP 
funding for U.S. territories.

Sec. 218. Merrill Field Airport, Anchorage, Alaska.

  This section would limit Federal restrictions that can be 
placed on Merrill Field Airport in Anchorage, Alaska. This 
section would also specify the Alaska DOT and Public Facilities 
as the governing body over both land use at Merrill Field 
Airport, and grant obligations originating from that land use.

      TITLE III--AIR TRAFFIC CONTROL MODERNIZATION AND FAA REFORM

Sec. 301. Air Traffic Control Modernization Oversight Board.

  This section would establish an ATC Modernization Oversight 
Board to provide specific oversight of FAA's modernization 
activities. The responsibilities of the Board would include 
providing advice on the FAA's modernization program and non-
safety portions of FAA's strategic plan; approving FAA's 
capital expenditures for modernization in excess of $100 
million and the agency's annual F&E budget request; and 
approving the Administrator's selections for the Chief 
Operating Officer of the ATO and the head of the JPDO. The 
Board is proposed to be composed of nine members: the FAA 
Administrator, a representative from the Department of Defense, 
one member representing the public interest, one member that is 
the CEO of an airport, one member that is the CEO of a 
passenger or cargo airline, one member from a labor union 
representing FAA employees involved with operation of the ATC 
system, one member from a labor union representing FAA 
employees involved with the maintenance of the ATC system, one 
member from an aircraft manufacturer, and one member from the 
GA community. The Chief NextGen Officer appointed under section 
302 would also serve, or designate someone, as a tenth, ex-
officio member of the board. This new board would replace the 
current Management Advisory Committee and its ATC subcommittee.

Sec. 302. NextGen management.

  This section would designate an individual as Chief NextGen 
Officer to be responsible for the implementation of the NextGen 
programs. This section would also direct this individual to (1) 
coordinate implementation of NextGen programs with the OMB, (2) 
develop an annual NextGen implementation plan, (3) ensure that 
the system architect allows for the potential incorporation of 
novel or currently unknown technology in the future, and (4) 
coordinate with other Federal agencies on NextGen programs.

Sec. 303. Facilitation of Next Generation air traffic services.

  This section would set forth factors that the FAA would 
consider in determining whether to accept the provision of air 
traffic services by non-governmental providers. Factors would 
include the effect on the safety and efficiency of the NAS, 
competition, the role of GA, and the widespread use of such 
services at affordable rates.

Sec. 304. Clarification of authority to enter into reimbursable 
        agreements.

  This section would make a change to section 106(m), to 
clarify the FAA's authority under that section (along with the 
FAA's broad contract authority under section 106(l)(6)) to 
enter into reimbursable interagency agreements.

Sec. 305. Clarification to acquisition reform authority.

  This section would repeal a provision of law that conflicts 
with the FAA's procurement reform authority that Congress 
granted the FAA in 1996.

Sec. 306. Assistance to other aviation authorities.

  This section would clarify the FAA's current authority to 
provide air traffic services abroad, whether or not the foreign 
entity is private or governmental, and that the FAA may 
participate in any competition to provide such services. It 
would also clarify that the Administrator may allow foreign 
authorities to pay in arrears rather than in advance, and that 
any payment for such assistance may be credited to the current 
applicable appropriations account.

Sec. 307. Presidential rank award program.

  In 1996, the FAA reformed its personnel system under special 
authority provided by Congress (now codified under 49 USC 
40122), which exempted the FAA from many requirements of the 
Federal government's personnel system under title 5, USC 
including the Presidential Rank Award Program. This section 
would change that and, through an amendment to 49 USC 40122, 
would allow the FAA's executives and senior professionals to 
participate in the program.

Sec. 308. Next generation facilities needs assessment.

  This section would create a specific process for the FAA to 
complete a comprehensive study and analysis of how the agency 
might realign its services and facilities to help reduce 
capital, operating, maintenance, and administrative costs on an 
agency-wide basis with no adverse effect on safety. The FAA 
would be required to develop criteria for realignment within 9 
months of passage and make any recommendations for action 
within 9 months of the publication of the criteria. The ATC 
Modernization Oversight Board would be required to study the 
FAA's recommendations, provide opportunity for public comment, 
and report the Board's recommendations to Congress. The 
Administrator would be prohibited from consolidating additional 
approach control facilities into the Southern California 
TRACON, the Northern California TRACON, the Miami TRACON or the 
Memphis TRACON until the Board's recommendations are completed.

Sec. 309. Next Generation Air Transportation System Implementation 
        Office.

  This section would require the Administrator of the FAA, the 
Secretary of Defense, the Administrator of NASA, the Secretary 
of Commerce, the Secretary of Homeland Security, and the head 
of any other Department or Federal agency from which the 
Secretary of Transportation requests assistance to designate an 
office responsible for carrying out NextGen responsibilities 
and coordinating with other agencies involved in the NextGen 
project. This section would also require, within 6 months of 
enactment, the development of a memorandum of understanding 
between the offices participating in the NextGen project that 
describes the responsibilities of each Department or agency and 
the budgetary and staff resources committed to the project.

Sec. 310. Definition of air navigation facility.

  This section would update and broaden the definition of an 
air navigation facility so that it is clear its scope includes 
the many capital expenses directly related to the acquisition 
or improvement of such facilities for the current or future 
NAS.

Sec. 311. Improved management of property inventory.

  This section would amend 49 USC 40110(a) to make clear that 
the FAA's current authority to purchase and sell property 
needed for airports and air navigation facilities includes the 
authority to retain funds associated with disposal of property.

Sec. 312. Educational requirements.

  This section would require the FAA to provide financial 
support to the DOD for the education of the dependent children 
of FAA employees in Puerto Rico and Guam.

Sec. 313. FAA personnel management system.

  This section would reform the process through which the FAA 
resolves labor disputes with employee unions arising in the 
collective bargaining process. If the Administrator of the FAA 
determines an impasse has been reached during the collective 
bargaining process, they would first be required to use the 
mediation services of the FMCS. Through this mediation process, 
the Administrator and the employees' union may by mutual 
agreement adopt procedures for the resolution of disputes or 
impasses arising during the collective bargaining process.
  If the services of the FMCS do not lead to an agreement, the 
Administrator and the employees' union would submit their 
unresolved issues to the FSIP. The FSIP would assert 
jurisdiction and order binding arbitration by a private 
arbitration board consisting of 3 members. To choose the 3 
members of the board, the Executive Director of FSIP would 
first request from the Director of FMCS not less than 15 
arbitrators with Federal government experience. This list would 
be provided to the Administrator and the employees' union, each 
of which would choose one arbitrator within 10 days of 
receiving the list. The 2 arbitrators chosen would then select 
a third arbitrator from the original list of 15 arbitrators 
within 7 days. If either the Administrator or the employees' 
union fail to choose an arbitrator, or if the 2 arbitrators are 
unable to agree on a third arbitrator, the selection would 
occur by the parties alternately striking names from the 
original list of 15 arbitrators until only one individual 
remains.
  If the Administrator and the employees' union do not agree on 
the framing of the issues to be submitted for arbitration, the 
arbitration board would frame the issues. The arbitration board 
would take into consideration the effect of its arbitration 
decisions on the FAA's ability to attract and retain a 
qualified workforce and the agency's budget. The arbitration 
board would render its decision within 90 days of appointment. 
Decisions of the arbitration board shall be conclusive and 
binding upon the FAA and the employees' union. Enforcement of 
the arbitration decisions shall be in the United State District 
Court for the District of Columbia.

Sec. 314. Acceleration of NextGen technologies.

  This section would require the FAA Administrator to publish a 
report within 6 months that includes the development of (1) 
RNP/ RNAV procedures at 35 Operational Evolution Partnership 
(OEP) airports identified by the FAA, (2) a description of the 
activities required for their implementation, (3) an 
implementation plan that includes baseline and performance 
metrics, (4) assessment of the benefits/costs of using third 
parties to develop the procedures, and (5) a process for the 
creation of future RNP and RNAV procedures. The Administrator 
would be required to implement 30 percent of the procedures 
within 18 months after the date of enactment, 60 percent within 
36 months after the date of enactment, and 100 percent by 2014.
  This section would also require the FAA Administrator to 
create a plan for the implementation of procedures at the 
remaining airports across the country. It requires 25 percent 
of the procedures at these airports to be implemented by 2015, 
50 percent by 2016, 75 percent by 2017, and 100 percent by 
2018.
  This section would extend the charter of the Performance 
Based Navigation Aviation Rulemaking Committee and would direct 
it to establish priorities for development of the RNP/RNAV 
procedures based on potential safety and congestion benefits. 
It would require that the process of the development of such 
procedures be subject to a previously established environmental 
review process.
  This section would also direct the FAA to provide Congress a 
deployment plan for the implementation of a nationwide data 
communications system to support NextGen air traffic control, 
and a report that evaluates the ability of NextGen technologies 
to facilitate improved performance standards for aircraft in 
the NAS.

Sec. 315. ADS-B development and implementation.

  This section would require the FAA administrator to submit a 
report to Congress within 90 days of enactment detailing the 
Administration's program for integrating ADS-B technology into 
the NAS. This report must include a defined budget and specific 
plans to implement ADS-B ground station infrastructure, a 
transition plan for NextGen which includes date specific 
milestones, workforce changes, and performance metrics to 
measure the agency's progress.
  The section would direct the FAA to complete the current 
rulemaking procedure regarding ``ADS-B Out'' within 45 days and 
that requires the FAA to identify the ADS-B Out technology that 
will be required under NextGen and mandate that all aircraft 
equip with ADS-B Out technology by 2015.
  This section would also require that the FAA initiate a 
rulemaking procedure in which the FAA must identify ``ADS-B 
In'' technology that will be required and directs the FAA to 
require all aircraft be equipped with ADS-B In technology by 
2018.
  This section would require the FAA to create a plan within 18 
months for the use of ADS-B technology by ATC by 2015. This 
plan requires the FAA to test the use of ADS-B prior to 2015, 
develop procedures for mixed-equipage environments, and 
establish a ``best equipped, best served'' policy to provide an 
incentive for early equipage.

Sec. 316. Equipage incentives.

  This section would require the FAA to issue a report within 6 
months that (1) identifies incentives to encourage the 
equipping of aircraft with NextGen technologies--including a 
``best equipped, best served'' approach, (2) includes costs and 
benefits of each approach identified, and (3) includes input 
from industry stakeholders.

Sec. 317. Performance metrics.

  This section would require the FAA to establish and track NAS 
performance metrics that include (1) operations per hour on 
runways, (2) average gate-to-gate times, (3) fuel burn between 
key cities, (4) operations using RNP/RNAV procedures, (5) time 
between pushing back from the gate and taking off, (6) 
uninterrupted climb and descent, (7) average gate arrival 
delay, (8) flown versus filed flight times, and (9) metrics to 
demonstrate reduced fuel burn and reduced emissions. The FAA is 
required to consult with industry stakeholders regarding 
optimal baselines, make the data available in a public format, 
and submit an annual report to Congress on the Administration's 
NextGen progress.

Sec. 318. Certification standards and resources.

  This section would require the FAA to develop a plan within 6 
months to accelerate the certification of NextGen technologies, 
including (1) updating project deadlines, (2) identifying 
specific activities needed to certify core NextGen 
technologies, (3) staffing requirements for certification, (4) 
assessing the use of third parties in the certification 
process, and (5) establishing performance metrics to measure 
the Agency's progress.
  This section would also prohibit the FAA from making any 
distinction between publicly and privately owned equipment when 
determining certification requirements.

Sec. 319. Unmanned Aerial Systems.

  This section would require the FAA to develop a plan within 1 
year to accelerate the integration of UASs into the NAS. This 
plan must include (1) a pilot project that includes the 
integration of UASs into 4 test sites by 2012, (2) development 
of certification, flight standards, and air traffic 
requirements for UASs, (3) the dedication of funding for 
research on UASs certification, flight standards and air 
traffic control, (4) coordination of research between NASA and 
DOD, and (5) verification of the safety of UASs before their 
integration into the NAS.

Sec. 320. Surface Systems Program Office.

  This section would require the ATO to evaluate the Airport 
Surface Detection Equipment-Model X (ASDE-X) program and 
associated technologies, and accelerate implementation of the 
ASDE-X program. The FAA would also be required to consider 
expediting the certification of Ground Based Augmentation 
System (GBAS) technology and develop a plan to utilize GBAS at 
the 35 OEP airports by September 30, 2012.

Sec. 321. Stakeholder coordination.

  This section would require the FAA to establish a process for 
including representatives of Federal employees that are 
affected by NextGen in the planning of ATC modernization. 
Within 180 days, the FAA would be required to submit a report 
to Congress on the implementation of this process.

Sec. 322. FAA task force on air traffic control facility conditions.

  This section would direct the FAA to create a task force on 
ATC facility conditions. This task force would be composed of 
11 members (7 appointed by the Administrator and 4 appointed by 
employees' unions). Four members would be required to have 
expertise in hazardous building conditions and two members 
would have expertise in rehabilitation of aging buildings. This 
task force would have the power to obtain official data.
  The task force's duties would include evaluating (1) the 
conditions of all ATC facilities, (2) reports from employees, 
(3) whether employees who reported illness were treated fairly, 
(4) utilization of remediation techniques, and (5) resources 
allocated to facility maintenance and renovation.
  The task force would be required to make recommendations 
necessary to ensure that (1) facilities needing the most 
immediate attention are prioritized, (2) the Administration is 
using scientifically approved remediation techniques, and (3) 
ATC facilities do not deteriorate to unsafe levels. The task 
force also would be required to submit a report to Congress and 
the Administrator regarding its recommendations and activities 
within 60 days. The Administrator is also required to submit a 
plan and timeline to implement the task force's recommendations 
within 30 days of receiving the task force's report.

Sec. 323. State ADS-B equipage bank pilot program.

  This section would authorize the Secretary of the DOT to 
enter into cooperative agreements with up to five States to 
establish ADS-B equipage banks for making loans and providing 
other assistance to public entities. States would be required 
to at least match the contribution granted by the Federal 
government for equipage. Borrowers would be required to repay 
the loan within 10 years. The section would authorize 
$25,000,000 to be appropriated from FY 2010 through FY 2014 for 
the band pilot program.

Sec. 324. Implementation of Inspector General ATC Recommendations.

  This section would direct the FAA to implement, within 1 year 
of enactment, the following recommendations of the Inspector 
General to (1) provide certain California-based ATC facilities 
a sufficient number of instructors and equipment to train a 
surge in new air traffic controllers, (2) distribute the 
placement of new ATC trainees evenly throughout the year, (3) 
commission an independent analysis of overtime scheduling, and 
(4) give priority to certified professional controllers in 
training to fill vacancies.

Sec. 325. Definitions.

  This section would define the terms ``Administration'', 
``Administrator'', ``NextGen'', and ``Secretary''.

 TITLE IV--AIRLINE SERVICE IMROVEMENTS AND SMALL COMMUNITY AIR SERVICE

                    SUBTITLE A--CONSUMER PROTECTION

Sec. 401. Airline customer service commitment.

  This section would require air carriers and airport operators 
to develop contingency plans to address situations in which the 
departure of a flight is substantially delayed while passengers 
are confined to an aircraft. Each plan would be submitted to 
the DOT for review and approval by the Secretary, and would be 
required to address minimum standards established by the 
Department. At a minimum the plans for air carriers would 
outline how the airline will ensure the passengers are provided 
(1) adequate food, potable water, and restroom facilities, (2) 
cabin ventilation and comfortable cabin temperatures, and (3) 
access to necessary medical treatment. This plan must include a 
clear time frame under which passengers are allowed to deplane 
a delayed aircraft, and the airline must allow passengers to 
deplane if 3 hours have elapsed since the doors have closed and 
the aircraft has not departed or the aircraft has landed for 3 
hours but passengers have been unable to deplane. Exceptions to 
the deplane requirements exist only when a pilot reasonably 
believes that the aircraft will depart within 30 minutes or if 
the pilot believes that deplaning the passengers would 
jeopardize passenger security or safety. Airport operators 
would be required to submit a plan to the DOT for approval that 
provides for the deplanement of passengers following extended 
tarmac delays. The Secretary would be required to perform 
periodic reviews of the air carrier and airport operator plans, 
and is authorized to impose civil penalties on air carriers or 
airport operators that fail to meet the requirements of such 
plans.
  Additionally, this section would require the DOT to create a 
consumer complaint telephone hotline.

Sec. 402. Publication of customer service data and flight delay 
        history.

  This section would require an air carrier to publish on their 
website, and update monthly, a list of chronically delayed 
flights operated by the air carrier. This section also requires 
the air carrier to disclose the on-time performance for a 
chronically delayed flight when a customer books a flight on 
the carrier's website, prior to actual purchase of a ticket.

Sec. 403. Expansion of DOT airline consumer complaint investigations.

  This section would direct the DOT Secretary to investigate 
consumer complaints regarding (1) flight cancelations, (2) 
overbooking flights, (3) lost or damaged baggage, (4) problems 
obtaining refunds, (5) incorrect information regarding fares, 
(6) frequent flyer programs, and (7) deceptive or misleading 
advertising.

Sec. 404. Establishment of advisory committee for aviation consumer 
        protection.

  This section would require the establishment of an advisory 
committee for the Secretary regarding aviation consumer 
protection. Membership would consist of one representative each 
from an air carrier, airport operator, and a State or local 
government with expertise with consumer protection matters, and 
one nonprofit group with expertise in consumer protection 
matters. The committee would be directed to provide 
recommendations to the Secretary and Congress.

Sec. 405. Disclosure of passenger fees.

  This section would direct the DOT Secretary to complete a 
rulemaking that requires air carriers to provide the public a 
list of charges, besides airfare (i.e. baggage fees and meal 
fees), that the air carrier may be imposing on passengers. The 
Secretary would be authorized to require an air carrier to make 
the list of fees public, and the list would be updated every 90 
days unless there is no increase in the amount or type of fees 
being imposed.

          SUBTITLE B--ESSENTIAL AIR SERVICE; SMALL COMMUNITIES

Sec. 411. EAS connectivity program.

  This section would direct the Secretary to establish a 
program under which the DOT shall require, in up to 10 
communities, that air carriers providing small community air 
service and major air carriers serving large hub airports 
participate in 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.

Sec. 412. Extension of final order establishing mileage adjustment 
        eligibility.

  This section would extend a provision in Vision 100 that 
specifies that the most commonly used route between an eligible 
place and the nearest medium hub airport or large hub airport 
is to be used to measure the highway mileage considered in 
reviewing any action to eliminate compensation for EAS to such 
place, or terminate the location's compensation eligibility for 
such service. The section would also require the Secretary, 
within 60 days after receiving a review request, to (1) 
determine whether the eligible place would have been subject to 
such elimination or termination under specified law based on 
such a determination of highway mileage, and (2) issue a final 
order regarding eligibility for EAS compensation. It would 
further terminate any such final order on September 30, 2011.

Sec. 413. EAS contract guidelines.

  This section would allow the Secretary to incorporate 
financial incentives in EAS contracts based on performance 
goals and to execute long-term EAS contracts when in the public 
interest to do so.

Sec. 414. Conversion of former EAS airports.

  This section would require the Secretary to establish a 
program to provide GA conversion funding for airports serving 
eligible places that the Secretary has determined no longer 
qualify as eligible places.

Sec. 415. EAS Reform.

  This section would require the FAA to continue to make funds 
available under 49 USC 45303 to support the EAS program. A 
total of $175 million would be authorized annually to carry out 
the program through FY 2011.

Sec. 416. Small community air service.

  This section would give priority to multiple communities who 
cooperate to submit a region or multi-state application for 
funding under the SCASDP. The section would also extend the 
authorization for SCASDP at a level of $35 million annually 
through FY 2011.

Sec. 417. EAS Marketing.

  This section would require that all applications for EAS are 
to include a marketing plan to promote community involvement in 
their EAS service.

Sec. 418. Rural Aviation Improvement.

  This section would authorize State and local governments to 
submit a proposal for compensation through EAS funding for an 
air carrier to provide service to a desired location, even when 
that location's per passenger subsidy is over the allowable 
dollar amount. To qualify, a State or local government must be 
willing to pay the difference between the per passenger subsidy 
and the allowable dollar amount for such subsidy. This section 
would also authorize a State or local government to submit a 
proposal for a preferred air carrier service. This proposal may 
be submitted when an air carrier is not the lowest cost bidder 
to provide air transportation to an eligible place, but a State 
or local government is willing to pay the difference between 
the lowest bid and the preferred air carrier.

                       SUBTITLE C--MISCELLANEOUS

Sec. 431. Clarification of air carrier fee disputes.

  This section would amend current law to clarify that 49 USC 
47129 applies to both air carriers and foreign air carriers. 
Current law provides an expedited administrative forum for 
determining whether significant carrier fees levied by airports 
are reasonable. The provision would require disputing airlines 
to continue to pay the contested fees, and would prohibit the 
charging airport from locking out complaining airlines. It 
would also require the charging airports to provide a mechanism 
such as a bond, surety or line of credit, to guarantee refunds 
to disputing airlines of fees determined to be unreasonable.
  The DOT has treated the provision as applying to both air 
carriers and foreign air carriers. There is currently pending a 
case in which the U.S. Court of Appeals for the District of 
Columbia Circuit may determine whether foreign airlines are 
covered by 49 USC 47129. The Department has argued that 
excluding foreign airlines from the coverage of 49 USC 47129 
would discriminate against them, contrary to the international 
commitments of the U.S. Government.

Sec. 432. Contract tower program.

  This section authorizes spending on the ATC contract tower 
program at a level of $9.5 million in FY 2010 and $10 million 
in FY 2011. The section would also adjust the timing of 
conducting benefit/cost criteria for such towers, increase the 
maximum Federal participation in new tower construction, and 
establish uniform standards for contract tower safety audits. 
This section would also amend the cost/benefit analysis to 
compare the costs of operating an air traffic tower against the 
benefit with the local or State government paying no more than 
20 percent for smaller airports.

Sec. 433. Airfares for members of the Armed Forces.

  In recognition of the contributions members of the Armed 
Forces and their families make to the nation, Congress 
recommends in this section that air carriers offer all members 
of the Armed Forces on active duty (1) reduced fares that are 
comparable to the lowest airfare for ticketed flights, and (2) 
flexible terms to purchase, modify, or cancel tickets without 
time restrictions, fees, or penalties.

                            TITLE V--SAFETY

                      SUBTITLE A--AVIATION SAFETY

Sec. 501. Runway safety equipment plan.

  This section would require the FAA to issue a plan to reduce 
runway incursions in the NAS not later than December 31, 2009, 
with a requirement for that plan to be integrated into the 
FAA's NextGen Implementation Plan.

Sec. 502. Judicial review of denial of airman certificates.

  This section would provide the FAA with the authority to seek 
judicial review of NTSB decisions involving airman certificate 
denials.

Sec. 503. Release of data relating to abandoned type certificates and 
        supplemental type certificates.

  This section would clarify that FAA may release data related 
to abandoned type certificates and supplemental type 
certificates, without the consent of the owner of record, if 
the FAA first determines that (1) there has been no proprietary 
interest exercised over the data for three years, (2) the type 
certificate owner has not been located, and (3) it would 
enhance safety if the data were released to aircraft operators 
in order to safely maintain and operate their vintage aircraft.

Sec. 504. Design organization certificates.

  This section would extend the timeline for FAA to begin to 
issue design organization certificates by one year.

Sec. 505. FAA access to criminal history records or database systems.

  This section would provide statutory authority for the FAA to 
continue to access the National Crime Information Center (NCIC) 
and related State criminal history databases so that FAA may 
continue to perform critical safety and security functions.

Sec. 506. Flight crew fatigue.

  This section would require a study of pilot fatigue to be 
conducted by the National Academy of Sciences, and for the FAA 
to consider the study's findings as part of its rulemaking 
proceeding on pilot flight time limitations and rest 
requirements. The section would also require the FAA to 
initiate a process to carry out the recommendations of the 
Civil Aerospace Medical Institute (CAMI) study on flight 
attendant fatigue.

Sec. 507. Increasing safety for helicopter and fixed wing emergency 
        medical service operators and patients.

  This section would require all helicopter emergency medical 
service operators to comply with the regulation in part 135 of 
title 14, CFR whenever there is a medical crew on board, 
without regard to whether there are patients on board the 
emergency medical aircraft. This section would also require the 
FAA to initiate a rulemaking to require these operators to use 
a standardized checklist of risk evaluation factors to 
determine whether a mission should be accepted. This section 
would require another FAA rulemaking to create a standardized 
flight dispatch procedure for these operators. This section 
would also require any aircraft used for these operations to 
have on board an operational terrain awareness and warning 
system within one year of the date of enactment. An additional 
rulemaking would be required, after a feasibility study, to 
require flight data and cockpit voice recorders on board these 
aircraft. Lastly, this section would require operators to 
submit to the FAA various data relating to flight requests, 
accident information, the number of flights conducted by the 
operator, and whether multiple aircraft responded to a call.

Sec. 508. Cabin crew communication.

  This section would require that flight attendants for FAA 
certificate holders must possess the ability to read, speak, 
and write English. This requirement would not apply to 
certificate holders' flights that are solely between points 
outside the United States.

Sec. 509. Clarification of Memorandum of Understanding with OSHA.

  This section would require the FAA Administrator to establish 
milestones and a policy statement for the completion of work 
with the OSHA begun under the August 2000 memorandum regarding 
the application of OSHA requirements to crewmembers while 
working in an aircraft.

Sec. 510. Acceleration of development and implementation of Required 
        Navigation Performance approach procedures.

  This section would require the FAA Administrator to set a 
target for achieving a minimum of 200 RNP procedures each 
fiscal year through FY 2012, with 25 percent of that target 
number meeting the low visibility approach criteria.

Sec. 511. Improved safety information.

  This section would require the FAA Administrator to issue a 
final rule regarding re-registration and renewal of aircraft 
registration which must include preparing for the expiration of 
aircraft registration certificates and periodic renewal process 
and other measures to promote the accuracy of the 
Administration's aircraft registry.

Sec. 512. Voluntary disclosure reporting process improvements.

  This section would require that FAA inspectors (1) evaluate 
corrective actions to ensure they are sufficiently 
comprehensive and apply to all affected aircraft before 
accepting a voluntary disclosure report, (2) verify that the 
corrective action is completed during the proposed timeframe, 
and (3) verify by inspection that the corrective action has 
occurred. This section would also require that the voluntary 
disclosure reporting process is reviewed by a second level 
supervisor before accepted and that this problem has not been 
previously identified by an FAA inspector and has not been 
previously disclosed within 5 years of being disclosed. The 
section also requires a GAO study of the Voluntary Disclosure 
Reporting Program.

Sec. 513. Procedural improvements for inspections.

  This section would require that the FAA, within 90 days of 
enactment, initiate rulemaking proceedings to prohibit, for 
three years, FAA inspectors from leaving the Agency to work for 
the air carrier that they were responsible for inspecting.
  This section would also require that the FAA implement within 
90 days a process for tracking field office reviews of air 
carrier compliance with airworthiness directives. Each air 
carrier is reviewed for 100 percent compliance on a 5 year 
cycle. Compliance reviews include physical inspections at each 
applicable carrier. Local and regional offices are directed to 
be contacted when a carrier is no longer in compliance with an 
airworthiness directive.

Sec. 514. Independent review of safety issues.

  This section would require the GAO to initiate a review and 
investigation of air safety issues identified by FAA employees 
and reported to the Administrator. The GAO must report any 
findings to the Administrator and relevant Congressional 
Committees on an annual basis.

Sec. 515. National review team.

  This section would require the FAA to create a national 
review team to conduct unannounced, periodic, random reviews of 
the Administration's oversight of air carriers which would 
report to the Administrator and the relevant Congressional 
Committees. Members of the team would not be permitted to 
review an air carrier that they previously had responsibility 
for overseeing. The section would also direct the DOT Inspector 
General to provide progress reports on the review team's 
effectiveness to Congress. The section would authorize the 
Administrator to hire a net increase of 200 additional safety 
inspectors.

Sec. 516. FAA Academy improvements.

  This section would require the FAA to conduct a comprehensive 
review of its Academy and facility training efforts within 1 
year after the date of enactment. The FAA would be required to 
clarify responsibility for oversight and direction of the 
facility training program at the national level and establish 
standards to identify the number of developmental controllers 
that can be accommodated by each facility.

Sec. 517. Reduction of runway incursions and operational errors.

  This section would require the FAA to develop a plan for 
reducing runway incursions by initiating action to improve 
airport lighting, provide better signage, and improve runway 
and taxiway markings. Within 1 year, the FAA must also develop 
a process for tracking operational errors and runway 
incursions.

Sec. 518. Aviation safety whistleblower investigation office.

  This section would establish an Aviation Safety Whistleblower 
Investigation Office to investigate complaints, and assess and 
make recommendations to the Administrator regarding further 
investigation or corrective actions. It would require the 
appointment of an independent Director of the Office for a 5 
year term and prohibits the disclosure of individuals who 
submit complaints or information. The Director would be 
required to report criminal violations to the DOT IG, and to 
provide annual reports to Congress to summarize the activities 
of the Office.

Sec. 519. Modification of customer service initiative.

  This section would direct the FAA to remove from their 
customer service initiative, mission statements, and vision 
statements, any reference to air carriers as ``customers''. 
Also, this section would instruct the agency to ensure that 
these statements should emphasize safety as the agency's 
highest priority when considering the dissatisfaction of any 
regulated entity.

Sec. 520. Headquarters review of Air Transportation Oversight System 
        database.

  This section would require the FAA to create a process by 
which the current ATOS database is reviewed internally on a 
monthly basis (1) to identify trends in regulatory compliance 
and (2) to ensure the appropriate corrective actions are taken. 
It also requires quarterly reports to Congress on the results 
of such reviews.

Sec. 521. Inspection of foreign repair stations.

  This section would require the FAA Administrator to establish 
and implement a safety assessment system for all FAA certified 
repair stations outside the U.S. This system would be required 
to ensure that foreign repair stations are subject to 
appropriate inspections. The inspection results for foreign 
civil aviation authorities would be considered if the foreign 
country has a maintenance safety agreement with the U.S. All 
maintenance service agreements would allow the FAA to conduct 
inspections of their repair stations, and the FAA would be 
required to notify Congress within 30 days of initiating formal 
negotiations with foreign aviation authorities. The FAA would 
also be required to provide annual reports on the agency's 
ability to track foreign repair work, staffing needs, and the 
level of training and quality of work being performed.
  This section would require the Secretaries of State and DOT 
to request that members of the International Civil Aviation 
Organization (ICAO) establish international standards for 
alcohol and controlled substance testing standards for 
maintenance workers. Within 1 year, the FAA Administrator would 
be required to establish a proposed rule requiring all repair 
stations abroad to implement alcohol and controlled substance 
testing for their workers that are acceptable to the FAA and 
consistent with the laws of the country in which it is located.
  Additionally, the FAA would be required to inspect all repair 
stations, including those abroad, at least twice a year in a 
manner consistent with U.S. obligations under international 
agreements, except that the use of FAA inspections would not be 
required if there is a bilateral aviation safety agreement in 
place that allows for comparable inspection by local 
authorities.

Sec. 522. Non-certificated maintenance providers.

  This section would require the FAA Administrator to issue 
regulations requiring all aircraft maintenance for air carriers 
to be performed by individuals who are (1) employed by an air 
carrier, (2) employed by a part 145 repair station, (3) 
employed by a contractor of a part 145 repair station or air 
carrier, which meets the requirements of a part 121 air carrier 
or part 145 repair station and who performs work under a part 
135 or part 121's supervision authorities and in accordance 
with the air carriers maintenance manual, or (4) employed by a 
holder of a production certificate that originally and 
continues to produce the article upon which the work is being 
conducted and in conjunction with a part 145 repair station or 
air carrier.

                       SUBTITLE B--FLIGHT SAFETY

Sec. 551. Pilot applicant employment records.

  This section would require that part 121 air carriers review 
a pilot's entire flight history before making hiring decisions. 
It would mandate that the FAA develop and maintain a 
comprehensive database of pilot records, including both FAA 
records and air carrier records. It also contains provisions 
permitting pilots to review and correct their records.

Sec. 552. Air carrier safety management systems.

  This section would require all part 121 air carriers to 
implement three safety programs as part of their Safety 
Management System (SMS): (1) an ASAP; (2) a FOQA program; and 
(3) a LOSA program. It would also require that the FAA 
implement employee protections for the ASAP and FOQA programs. 
It mandates that the FAA Administrator consider the viability 
of integrating cockpit voice recorder data into safety 
oversight practices and ensure that the agency enforce safety 
regulations in a consistent manner.

Sec. 553. Implementation of NTSB Recommendations.

  This section would require the Administrator to submit an 
annual report to Congress regarding the recommendations issued 
by the NTSB consisting of (1) whether the FAA plans to 
implement the recommendation, (2) if so, what actions the FAA 
plans to take to implement the recommendation, and (3) if the 
FAA chooses to not implement a NTSB recommendation, its 
reasoning for not doing so.
  This section would also require the FAA to, within 180 days, 
submit to Congress the above information on all current NTSB 
recommendations not implemented so far.

Sec. 554. Improved Flight Operational Quality Assurance, Aviation 
        Safety Action Programs, and Line Operational Safety Audit 
        Programs.

  This section would limit the use of FOQA and ASAP and LOSA 
data in judicial proceedings. FOQA, ASAP or LOSA data would 
only be allowed in a judicial proceeding if the judge finds 
that a party shows that the information is relevant, not 
otherwise known or available, and demonstrates a particularized 
need for the information that outweighs the intrusion upon the 
confidentiality of these programs. When this information is 
used in a judicial proceeding, the court would be required to 
protect it against further dissemination with a protective 
order and placing the information under seal. This section 
would also prevent disclosure of this data through the Freedom 
of Information Act (FOIA). This section would not prevent the 
NTSB from referring to information provided under the FOQA, 
ASAP, or LOSA programs.

Sec. 555. Re-evaluation of flight crew training, testing, and 
        certification requirements.

  This section would require the Administrator to develop and 
implement a plan to reevaluate flight crew training procedures 
and specifies what types of training would be included in the 
review. This section also would require the Administrator to 
initiate a new rulemaking to reevaluate minimum requirements to 
become a commercial pilot, certificated captain, and when 
transitioning to a new type of aircraft.

Sec. 556. Safety inspections of regional air carriers.

  This section would instruct the Administrator to make random, 
on-site safety inspections of regional air carriers at least 
once a year.

Sec. 557. Establishment of safety standards with respect to the 
        training, hiring and operation of aircraft by pilots.

  The section would require the FAA to issue a final rule 
establishing training safety standards for pilots within 180 
days after enactment of this Act, which would end the comment 
period that had been extended from January 12, 2009.

Sec. 558. Oversight of pilot training schools.

  This section would require the Administrator to submit a plan 
to Congress detailing the FAA's plans to enforce oversight over 
Pilot Training Schools.

Sec. 559. Enhanced Training for Flight Attendants and Gate Agents.

  This section would require that flight attendants and gate 
agents receive training related to serving alcohol to 
passengers, as well as recognizing and dealing with intoxicated 
passengers.

Sec. 560. Definitions.

  This section would define the terms ``Aviation Safety Action 
Program'', ``Administrator'', ``Air Carrier'', ``FAA'', ``FOQA 
Program'', ``Line Operation Safety Audit Program'', and ``Part 
121 Air Carrier''.

                      TITLE VI-- AVIATION RESEARCH

Sec. 601. Airport cooperative research program.

  This section would provide a permanent authorization for the 
Airport Cooperative Research Program (ACRP), which was 
originally established as a pilot research program under Vision 
100. This section would authorize funding at $15 million per 
year, of which at least $5 million is specifically targeted to 
perform research on airport environmental issues.

Sec. 602. Reduction of noise, emissions, and energy consumption from 
        civilian aircraft.

  This section would require the FAA to establish a research 
program related to reducing civilian aircraft energy use, 
emissions, and source noise through grants or other measures 
which may include cost-sharing. The section would also set 
performance objectives the program must accomplish.

Sec. 603. Production of alternative fuel technology for civilian 
        aircraft.

  This section would require DOT to establish a research 
program to develop jet fuel from natural gas, biomass, and 
other renewable sources. This section would also require that 
the FAA designate an institution a Center of Excellence for 
Alternative Jet-Fuel Research for Civil Aircraft within 180 
days.

Sec. 604. Production of clean coal fuel technology for civilian 
        aircraft.

  This section would require the Secretary of Transportation to 
establish a Center of Excellence for a research program related 
to developing jet fuel from clean coal through grants or other 
measures, with a requirement to include educational and 
research institutions in the initiative.

Sec. 605. Advisory committee on future of aeronautics.

  This section would establish the ``Advisory Committee on the 
Future of Aeronautics.'' The purpose of this advisory committee 
would be to examine the best governmental and organizational 
structures for aeronautics research and development.

Sec. 606. Research program to improve airfield pavements.

  This section would allow the FAA to continue a program that 
authorizes awards to nonprofit research foundations to improve 
the construction and durability of pavement for runways.

Sec. 607. Wake turbulence, volcanic ash, and weather research.

  This section would require the FAA to (1) evaluate proposals 
to reduce existing spacing requirements between aircraft, (2) 
implement a system to improve volcanic ash avoidance options 
for aircraft, and (3) establish weather research projects--
including research on ground de-icing and anti-icing.

Sec. 608. Incorporation of Unmanned Aircraft Systems into FAA plans and 
        policies.

  This section would allow the FAA to conduct developmental 
research on unmanned aircraft systems. It would also direct the 
FAA and the NAS to create an assessment of UAS capabilities and 
requires the NAS to submit a report to Congress on the subject. 
This section would require the FAA to issue a rule to update 
the most recent policy statement on unmanned aircraft systems, 
and would direct the FAA to identify permanent areas in the 
Arctic where unmanned aircraft may operate 24 hours a day. This 
section would also require the FAA to take part in cost-share 
pilot projects designed to accelerate the safe integration of 
UASs into the NAS.

Sec. 609. Reauthorization of center of excellence in applied research 
        and training in the use of advanced materials in transport 
        aircraft.

  This section would reauthorize funding for the Center of 
Excellence in Applied Research and Training through FY 2012 at 
a level of $1 million annually.

Sec. 610. Pilot program for zero emission airport vehicles.

  This section would direct the DOT Secretary to establish a 
pilot program to foster the acquisition and use of zero 
emissions vehicles at airports.

Sec. 611. Reduction of emissions from airport power sources.

  This section would establish a program through which the DOT 
Secretary will encourage airport operators to assess their 
energy requirements and identify opportunities to reduce 
harmful emissions and increase energy efficiency. This section 
would also authorize the Secretary to make grants to eligible 
airports relating to reducing harmful emissions and increasing 
energy efficiency.

Sec. 612. Siting of windfarms near FAA navigational aides and other 
        assets.

  This section would require the FAA Administrator to survey 
and assess the leases for critical FAA facility sites and 
determine how close these facilities are to wind farms or areas 
suitable for the construction of wind farms. Following the 
assessment, the FAA would be required to report to Congress and 
the GAO on its findings and recommendations. This section would 
also require GAO to assess the potential impact wind farms have 
on the FAA's navigational aides and methods and restrictions to 
mitigate the effects of wind farms on navigational aides. Upon 
receipt of the GAO report, the FAA would be directed to issue 
guidelines for the construction of wind farms near critical FAA 
facilities.

Sec. 613. Research and Development for Equipment to Clean and Monitor 
        the Engine and APU Bleed Air Supplied on Pressurized Aircraft.

  This section would require the FAA to conduct a research 
program for the identification or development of effective air 
cleaning technology and sensors technology for the engine and 
auxiliary power unit bleed air supplied to passenger cabin and 
flight deck of all pressurized aircraft. It would require the 
FAA submit a report to Congress within one year.

                        TITLE VII--MISCELLANEOUS

Sec. 701. General authority.

  This section would extend the program authority of the DOT 
Secretary to provide war-risk insurance and reinsurance until 
October 1, 2017. The section would also extend third party 
liability protections through CY 2012 and the war risk 
insurance program through CY 2011.

Sec. 702. Human intervention management study.

  This section would require the Administrator of the FAA to 
develop a Human Intervention Management Study program for cabin 
crews employed by commercial air carriers in the U.S.

Sec. 703. Airport program modifications.

  This section would require the Administrator of the FAA to 
establish a formal, structured certification training program 
for the airport concessions disadvantaged business enterprise 
program. The section would also allow the Administrator to 
appoint three additional staff to implement the program.

Sec. 704. Miscellaneous program extensions.

  This section would extend the current AIP eligibility for the 
Metropolitan Washington Airports Authority, which oversees both 
Ronald Reagan Washington National Airport and Washington Dulles 
International Airport, through FY 2011.
  This section would also extend AIP eligibility for the 
Marshall Islands, the Federated States of Micronesia, Palau, 
and Midway Island Airport through FY 2011.

Sec. 705. Extension of competitive access reports.

  This section would make permanent the requirement for air 
carriers to file competitive access reports by eliminating the 
current sunset provision.

Sec. 706. Update on overflights.

  This section would direct the FAA to ensure that existing 
overflight fees are reasonably related to agency costs of 
providing air traffic services, and would require that the FAA 
adjust the fees and begin collection of the appropriate amount 
after considering recommendations made by the Aviation 
Rulemaking Committee for Overflight Fees. The section would 
further permit the FAA to periodically modify the fee based on 
the cost of providing such service.

Sec. 707. Technical corrections.

  This section would provide technical corrections to ensure 
that the Merit Systems Protection Board has jurisdiction to 
investigate claims made against FAA, and has the enforcement 
ability at the agency that it does for all other Federal 
employees.

Sec. 708. FAA technical training and staffing.

  This section would instruct the GAO to conduct a study of the 
training of FAA systems specialists, including a recommendation 
for a future approach to training these employees. This section 
would also require the FAA to develop a staffing model for 
aviation safety inspectors within 18 months of passage.

Sec. 709. Commercial air tour operators in national parks.

  This section would allow air tour overflights over a national 
park when a voluntary agreement has been reached between the 
operator and the appropriate representative of the national 
park. This section would also provide a waiver from the general 
rule prohibiting tour operations over national parks for 
national parks that have 100 or fewer air tour operations each 
year.

Sec. 710. Phaseout of stage 1 and 2 aircraft.

  This section would prohibit the operation of a subsonic 
turbojet to or from an airport in the U.S. unless it complies 
with stage 3 noise levels. Airports would be able to opt out of 
the prohibition.

Sec. 711. Weight restrictions at Teterboro Airport.

  This section would prohibit the FAA from taking action 
designed to challenge or influence the weight restrictions at 
Teterboro Airport, New Jersey.

Sec. 712. Pilot program for redevelopment of airport properties.

  This section would direct the FAA to create a pilot program 
fostering the collaboration between airports that have 
submitted a noise compatibility program and the surrounding 
neighboring local jurisdictions to encourage airport-compatible 
land uses and generate economic benefits to the local airport 
authority and adjacent community. The FAA would also be able to 
issue grants for this program.

Sec. 713. Transporting musical instruments.

  This section would direct air carriers to allow the safe 
transportation of musical instruments as carry-on baggage in 
the seat next to the owner if the owner has purchased an 
additional seat, or as checked baggage.

Sec. 714. Recycling plans for airports.

  This section would amend the definition of airport planning 
to include a plan for recycling and minimizing the generation 
of airport solid waste.

Sec. 715. Disadvantaged Business Enterprise program adjustments.

  This section would define the purpose of the DBE program and 
set forth findings of Congress relating to the discrimination 
of minority and woman owned businesses in the field of airport 
concessions and contracts. This section would require the FAA 
to establish mandatory training for its employees on whether a 
small business concern in airport concessions qualifies as a 
small business concern under the DBE program. This section 
would also require the DOT to adjust the personal net worth cap 
for the impact of inflation and exclude the amount of 
retirement benefits in the calculation of net worth.

Sec. 716. Front line manager staffing.

  This section would require the FAA Administrator to initiate 
a study on front line manager staffing requirements in an ATC 
facility.

Sec. 717. Study of helicopter and fixed wing air ambulance services.

  This section would require GAO to conduct a detailed study of 
the air ambulance industry and to make recommendations related 
to the interaction of State and Federal regulations of air 
ambulances and whether there are systemic problems throughout 
the industry.

Sec. 718. Repeal of certain limitations on Metropolitan Washington 
        Airports Authority.

  This section would repeal a restriction that prevents the DOT 
from approving applications of the Metropolitan Washington 
Airports Authority for airport development projects and to 
impose a passenger facility fee.

Sec. 719. Study of aeronautical mobile telemetry.

  This section would require the FAA to conduct a report that 
identifies aeronautical mobile telemetry services needed over 
the next decade by civil aviation and the potential impact of 
the introduction of a new radio service operating at the same 
spectrum as aeronautical mobile telemetry service.

                        Changes in Existing Law

  In compliance with paragraph 12 of rule XXVI of the Standing 
Rules of the Senate, changes in existing law made by the bill, 
as reported, are shown as follows (existing law proposed to be 
omitted is enclosed in black brackets, new material is printed 
in italic, existing law in which no change is proposed is shown 
in roman):

                           UNITED STATES CODE

                        TITLE 49. TRANSPORTATION

                SUBTITLE I. DEPARTMENT OF TRANSPORTATION

                        CHAPTER 1. ORGANIZATION

Sec. 106. Federal Aviation Administration

  (a) The Federal Aviation Administration is an administration 
in the Department of Transportation.
  (b) The head of the Administration is the Administrator. The 
Administration has a Deputy Administrator. They are appointed 
by the President, by and with the advice and consent of the 
Senate. When making an appointment, the President shall 
consider the fitness of the individual to carry out efficiently 
the duties and powers of the office. Except as provided in 
subsection (f) or in other provisions of law, the Administrator 
reports directly to the Secretary of Transportation. The term 
of office for any individual appointed as Administrator after 
August 23, 1994, shall be 5 years.
  (c) The Administrator must--
          (1) be a citizen of the United States;
          (2) be a civilian; and
          (3) have experience in a field directly related to 
        aviation.
  (d)(1) The Deputy Administrator must be a citizen of the 
United States and have experience in a field directly related 
to aviation. An officer on active duty in an armed force may be 
appointed as Deputy Administrator. However, if the 
Administrator is a former regular officer of an armed force, 
the Deputy Administrator may not be an officer on active duty 
in an armed force, a retired regular officer of an armed force, 
or a former regular officer of an armed force.
  (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.
  (3) An officer on active duty or a retired officer serving as 
Deputy Administrator is entitled to hold a rank and grade not 
lower than that held when appointed as Deputy Administrator. 
The Deputy Administrator may elect to receive (A) the pay 
provided by law for the Deputy Administrator, or (B) the pay 
and allowances or the retired pay of the military grade held. 
If the Deputy Administrator elects to receive the military pay 
and allowances or retired pay, the Administration shall 
reimburse the appropriate military department from funds 
available for the expenses of the Administration.
  (4) The appointment and service of a member of the armed 
forces as a Deputy Administrator does not affect the status, 
office, rank, or grade held by that member, or a right or 
benefit arising from the status, office, rank, or grade. The 
Secretary of a military department does not control the member 
when the member is carrying out duties and powers of the Deputy 
Administrator.
  (e) The Administrator and the Deputy Administrator may not 
have a pecuniary interest in, or own stock in or bonds of, an 
aeronautical enterprise, or engage in another business, 
vocation, or employment.
  (f) Authority of the Secretary and the Administrator.--
          (1) Authority of the Secretary.--Except as provided 
        in paragraph (2), the Secretary of Transportation shall 
        carry out the duties and powers, and controls the 
        personnel and activities, of the Administration. 
        Neither the Secretary nor the Administrator may submit 
        decisions for the approval of, or be bound by the 
        decisions or recommendations of, a committee, board, or 
        organization established by executive order.
          (2) Authority of the Administrator.--The 
        Administrator--
                  (A) is the final authority for carrying out 
                all functions, powers, and duties of the 
                Administration relating to--
                          (i) the appointment and employment of 
                        all officers and employees of the 
                        Administration (other than Presidential 
                        and political appointees);
                          (ii) the acquisition and maintenance 
                        of property, services, and equipment of 
                        the Administration;
                          (iii) except as otherwise provided in 
                        paragraph (3), the promulgation of 
                        regulations, rules, orders, circulars, 
                        bulletins, and other official 
                        publications of the Administration; and
                          (iv) any obligation imposed on the 
                        Administrator, or power conferred on 
                        the Administrator, by the Air Traffic 
                        Management System Performance 
                        Improvement Act of 1996 (or any 
                        amendment made by that Act);
                  (B) shall offer advice and counsel to the 
                President with respect to the appointment and 
                qualifications of any officer or employee of 
                the Administration to be appointed by the 
                President or as a political appointee;
                  (C) may delegate, and authorize successive 
                redelegations of, to an officer or employee of 
                the Administration any function, power, or duty 
                conferred upon the Administrator, unless such 
                delegation is prohibited by law; and
                  (D) except as otherwise provided for in this 
                title, and notwithstanding any other provision 
                of law, shall not be required to coordinate, 
                submit for approval or concurrence, or seek the 
                advice or views of the Secretary or any other 
                officer or employee of the Department of 
                Transportation on any matter with respect to 
                which the Administrator is the final authority.
          (3) Regulations.--
                  (A) In general.--In the performance of the 
                functions of the Administrator and the 
                Administration, the Administrator is authorized 
                to issue, rescind, and revise such regulations 
                as are necessary to carry out those functions. 
                The issuance of such regulations shall be 
                governed by the provisions of chapter 5 of 
                title 5. The Administrator shall act upon all 
                petitions for rulemaking no later than 6 months 
                after the date such petitions are filed by 
                dismissing such petitions, by informing the 
                petitioner of an intention to dismiss, or by 
                issuing a notice of proposed rulemaking or 
                advanced notice of proposed rulemaking. The 
                Administrator shall issue a final regulation, 
                or take other final action, not later than 16 
                months after the last day of the public comment 
                period for the regulations or, in the case of 
                an advanced notice of proposed rulemaking, if 
                issued, not later than 24 months after the date 
                of publication in the Federal Register of 
                notice of the proposed rulemaking. On February 
                1 and August 1 of each year the Administrator 
                shall submit to the Committee on Transportation 
                and Infrastructure of the House of 
                Representatives and the Committee on Commerce, 
                Science, and Transportation of the Senate a 
                letter listing each deadline the Administrator 
                missed under this subparagraph during the 6-
                month period ending on such date, including an 
                explanation for missing the deadline and a 
                projected date on which the action that was 
                subject to the deadline will be taken.
                  (B) Approval of Secretary of 
                Transportation.--
                          (i) The Administrator may not issue a 
                        proposed regulation or final regulation 
                        that is likely to result in the 
                        expenditure by State, local, and tribal 
                        governments in the aggregate, or by the 
                        private sector, of $250,000,000 or more 
                        (adjusted annually for inflation 
                        beginning with the year following the 
                        date of the enactment of the Wendell H. 
                        Ford Aviation Investment and Reform Act 
                        for the 21st Century) in any year, or 
                        any regulation which is significant, 
                        unless the Secretary of Transportation 
                        approves the issuance of the regulation 
                        in advance. For purposes of this 
                        paragraph, a regulation is significant 
                        if the Administrator, in consultation 
                        with the Secretary (as appropriate), 
                        determines that the regulation is 
                        likely to--
                                  (I) have an annual effect on 
                                the economy of $250,000,000 or 
                                more or adversely affect in a 
                                substantial material way the 
                                economy, a sector of the 
                                economy, productivity, 
                                competition, jobs, the 
                                environment, public health or 
                                safety, or State, local, or 
                                tribal governments or 
                                communities; or
                                  (II) raise novel or 
                                significant legal or policy 
                                issues arising out of legal 
                                mandates that may substantially 
                                and materially affect other 
                                transportation modes.
                          (ii) In an emergency, the 
                        Administrator may issue a regulation 
                        described in clause (i) without prior 
                        approval by the Secretary, but any such 
                        emergency regulation is subject to 
                        ratification by the Secretary after it 
                        is issued and shall be rescinded by the 
                        Administrator within 5 days (excluding 
                        Saturdays, Sundays, and legal public 
                        holidays) after issuance if the 
                        Secretary fails to ratify its issuance.
                          (iii) Any regulation that does not 
                        meet the criteria of clause (i), and 
                        any regulation or other action that is 
                        a routine or frequent action or a 
                        procedural action, may be issued by the 
                        Administrator without review or 
                        approval by the Secretary.
                          (iv) The Administrator shall submit a 
                        copy of any regulation requiring 
                        approval by the Secretary under clause 
                        (i) to the Secretary, who shall either 
                        approve it or return it to the 
                        Administrator with comments within 45 
                        days after receiving it.
                  (C) Periodic review.--
                          (i) Beginning on the date which is 3 
                        years after the date of the enactment 
                        of the Air Traffic Management System 
                        Performance Improvement Act of 1996, 
                        the Administrator shall review any 
                        unusually burdensome regulation issued 
                        by the Administrator after such date of 
                        enactment beginning not later than 3 
                        years after the effective date of the 
                        regulation to determine if the cost 
                        assumptions were accurate, the benefit 
                        of the regulations, and the need to 
                        continue such regulations in force in 
                        their present form.
                          (ii) The Administrator may identify 
                        for review under the criteria set forth 
                        in clause (i) unusually burdensome 
                        regulations that were issued before the 
                        date of the enactment of the Air 
                        Traffic Management System Performance 
                        Improvement Act of 1996 and that have 
                        been in force for more than 3 years.
                          (iii) For purposes of this 
                        subparagraph, the term ``unusually 
                        burdensome regulation'' means any 
                        regulation that results in the annual 
                        expenditure by State, local, and tribal 
                        governments in the aggregate, or by the 
                        private sector, of $25,000,000 or more 
                        (adjusted annually for inflation 
                        beginning with the year following the 
                        date of the enactment of the Air 
                        Traffic Management System Performance 
                        Act of 1996) in any year.
                          (iv) The periodic review of 
                        regulations may be performed by 
                        advisory committees and the Management 
                        Advisory Council established under 
                        subsection (p).
          (4) Definition of political appointee.--For purposes 
        of this subsection, the term ``political appointee'' 
        means any individual who--
                  (A) is employed in a position listed in 
                sections 5312 through 5316 of title 5 (relating 
                to the Executive Schedule);
                  (B) is a limited term appointee, limited 
                emergency appointee, or noncareer appointee in 
                the Senior Executive Service, as defined under 
                paragraphs (5), (6), and (7), respectively, of 
                section 3132(a) of title 5; or
                  (C) is employed in a position in the 
                executive branch of the Government of a 
                confidential or policy-determining character 
                under schedule C of subpart C of part 213 of 
                title 5 of the Code of Federal Regulations.
  (g) Duties and powers of Administrator.--
          (1) Except as provided in paragraph (2) of this 
        subsection, the Administrator shall carry out--
                  (A) duties and powers of the Secretary of 
                Transportation under subsection (f) of this 
                section related to aviation safety (except 
                those related to transportation, packaging, 
                marking, or description of hazardous material) 
                and stated in sections 308(b), 1132(c) and (d), 
                40101(c), 40103(b), 40106(a), 40108, 40109(b), 
                40113(a), 40113(c), 40113(d), 40113(e), 
                40114(a), and 40119, chapter 445 (except 
                sections 44501(b), 44502(a)(2), 44502(a)(3), 
                44502(a)(4), 44503, 44506, 44509, 44510, 44514, 
                and 44515), chapter 447 (except sections 44717, 
                44718(a), 44718(b), 44719, 44720, 44721(b), 
                44722, and 44723), chapter 449 (except sections 
                44903(d), 44904, 44905, 44907-44911, 44913, 
                44915, and 44931-44934), chapter 451, chapter 
                453, sections 46104, 46301(d) and (h)(2), 
                46303(c), 46304-46308, 46310, 46311, and 46313-
                46316, chapter 465, and sections 47504(b) 
                (related to flight procedures), 47508(a), and 
                48107 of this title; and
                  (B) additional duties and powers prescribed 
                by the Secretary of Transportation.
          (2) In carrying out sections 40119, 44901, 44903(a)-
        (c) and (e), 44906, 44912, 44935-44937, 44938(a) and 
        (b), and 48107 of this title, paragraph (1)(A) of this 
        subsection does not apply to duties and powers vested 
        in the Director of Intelligence and Security by section 
        44931 of this title.
  (h) Section 40101(d) of this title applies to duties and 
powers specified in subsection (g)(1) of this section. Any of 
those duties and powers may be transferred to another part of 
the Department only when specifically provided by law or a 
reorganization plan submitted under chapter 9 of title 5. A 
decision of the Administrator in carrying out those duties or 
powers is administratively final.
  (i) The Deputy Administrator shall carry out duties and 
powers prescribed by the Administrator. The Deputy 
Administrator acts for the Administrator when the Administrator 
is absent or unable to serve, or when the office of the 
Administrator is vacant.
  (j) There is established within the Federal Aviation 
Administration an institute to conduct civil aeromedical 
research under section 44507 of this title. Such institute 
shall be known as the ``Civil Aeromedical Institute''. Research 
conducted by the institute should take appropriate advantage of 
capabilities of other government agencies, universities, or the 
private sector.
  (k) Authorization of appropriations for operations.--
          (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;
                  [(D) $8,064,000,000 for fiscal year 2007; and
                  [(E) $9,042,467,000 for fiscal year 2009.]
                  (A) $9,336,000,000 for fiscal year 2010; and
                  (B) $9,620,000,000 for fiscal year 2011.
  Such sums shall remain available until expended.
          (2) Authorized expenditures.--Out of amounts 
        appropriated under paragraph (1), the following 
        expenditures are authorized:
                  (A) Such sums as may be necessary for fiscal 
                years 2004 through 2007 to support 
                infrastructure systems development for both 
                general aviation and the vertical flight 
                industry.
                  (B) Such sums as may be necessary for fiscal 
                years 2004 through 2007 to establish helicopter 
                approach procedures using current technologies 
                (such as the Global Positioning System) to 
                support all-weather, emergency medical service 
                for trauma patients.
                  (C) Such sums as may be necessary for fiscal 
                years 2004 through 2007 to revise existing 
                terminal and en route procedures and instrument 
                flight rules to facilitate the takeoff, flight, 
                and landing of tiltrotor aircraft and to 
                improve the national airspace system by 
                separating such aircraft from congested flight 
                paths of fixed-wing aircraft.
                  (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.
  (l) Personnel and services.--
          (1) Officers and employees.--Except as provided in 
        subsections (a) and (g) of section 40122, the 
        Administrator is authorized, in the performance of the 
        functions of the Administrator, to appoint, transfer, 
        and fix the compensation of such officers and 
        employees, including attorneys, as may be necessary to 
        carry out the functions of the Administrator and the 
        Administration. In fixing compensation and benefits of 
        officers and employees, the Administrator shall not 
        engage in any type of bargaining, except to the extent 
        provided for in section 40122(a), nor shall the 
        Administrator be bound by any requirement to establish 
        such compensation or benefits at particular levels.
          (2) Experts and consultants.--The Administrator is 
        authorized to obtain the services of experts and 
        consultants in accordance with section 3109 of title 5.
          (3) Transportation and per diem expenses.--The 
        Administrator is authorized to pay transportation 
        expenses, and per diem in lieu of subsistence expenses, 
        in accordance with chapter 57 of title 5.
          (4) Use of personnel from other agencies.--The 
        Administrator is authorized to utilize the services of 
        personnel of any other Federal agency (as such term is 
        defined under section 551(1) of title 5).
          (5) Voluntary services.--
                  (A) General rule.--In exercising the 
                authority to accept gifts and voluntary 
                services under section 326 of this title, and 
                without regard to section 1342 of title 31, the 
                Administrator may not accept voluntary and 
                uncompensated services if such services are 
                used to displace Federal employees employed on 
                a full-time, part-time, or seasonal basis.
                  (B) Incidental expenses. The Administrator is 
                authorized to provide for incidental expenses, 
                including transportation, lodging, and 
                subsistence, for volunteers who provide 
                voluntary services under this subsection.
                  (C) Limited treatment as federal employees.--
                An individual who provides voluntary services 
                under this subsection shall not be considered a 
                Federal employee for any purpose other than for 
                purposes of chapter 81 of title 5, relating to 
                compensation for work injuries, and chapter 171 
                of title 28, relating to tort claims.
          (6) Contracts.--The Administrator is authorized to 
        enter into and perform such contracts, leases, 
        cooperative agreements, or other transactions as may be 
        necessary to carry out the functions of the 
        Administrator and the Administration. The Administrator 
        may enter into such contracts, leases, cooperative 
        agreements, and other transactions with any Federal 
        agency (as such term is defined in section 551(1) of 
        title 5) or any instrumentality of the United States, 
        any State, territory, or possession, or political 
        subdivision thereof, any other governmental entity, or 
        any person, firm, association, corporation, or 
        educational institution, on such terms and conditions 
        as the Administrator may consider appropriate.
          (7) Air Traffic Services.--In determining what 
        actions to take, by rule or through an agreement or 
        transaction under paragraph (6) or under section 44502, 
        to permit non-Government providers of communications, 
        navigation, surveillance or other services to provide 
        such services in the National Airspace System, or to 
        require the usage of such services, the Administrator 
        shall consider whether such actions would--
                  (A) promote the safety of life and property;
                  (B) improve the efficiency of the National 
                Airspace System and reduce the regulatory 
                burden upon National Airspace System users, 
                based upon sound engineering principles, user 
                operational requirements, and marketplace 
                demands;
                  (C) encourage competition and provide 
                services to the largest feasible number of 
                users; and
                  (D) take into account the unique role served 
                by general aviation.
  (m) Cooperation by Administrator.--With the consent of 
appropriate officials, the Administrator may, with or without 
reimbursement, use or accept the services, equipment, 
personnel, and facilities of any other Federal agency (as such 
term is defined in section 551(1) of title 5) and any other 
public or private entity. The Administrator may also cooperate 
with appropriate officials of other public and private agencies 
and instrumentalities concerning the use of services, 
equipment, personnel, and facilities. The head of each Federal 
agency shall cooperate with the Administrator in making the 
services, equipment, personnel, and facilities of the Federal 
agency available to the Administrator. The head of a Federal 
agency is authorized, notwithstanding any other provision of 
law, to transfer to or to receive from the Administration, 
[without] with or without reimbursement, supplies, personnel, 
services, and equipment other than administrative supplies or 
equipment.
  (n) Acquisition.--
          (1) In general.--The Administrator is authorized--
                  (A) to acquire (by purchase, lease, 
                condemnation, or otherwise), construct, 
                improve, repair, operate, and maintain--
                          (i) air traffic control facilities 
                        and equipment;
                          (ii) research and testing sites and 
                        facilities; and
                          (iii) such other real and personal 
                        property (including office space and 
                        patents), or any interest therein, 
                        within and outside the continental 
                        United States as the Administrator 
                        considers necessary;
                  (B) to lease to others such real and personal 
                property; and
                  (C) to provide by contract or otherwise for 
                eating facilities and other necessary 
                facilities for the welfare of employees of the 
                Administration at the installations of the 
                Administration, and to acquire, operate, and 
                maintain equipment for these facilities.
          (2) Title.--Title to any property or interest therein 
        acquired pursuant to this subsection shall be held by 
        the Government of the United States.
  (o) Transfers of funds.--The Administrator is authorized to 
accept transfers of unobligated balances and unexpended 
balances of funds appropriated to other Federal agencies (as 
such term is defined in section 551(1) of title 5) to carry out 
functions transferred by law to the Administrator or functions 
transferred pursuant to law to the Administrator on or after 
the date of the enactment of the Air Traffic Management System 
Performance Improvement Act of 1996.
  [(p) Management Advisory Council and Air Traffic Services 
Board.--
          [(1) Establishment.--Within 3 months after the date 
        of the enactment of the Air Traffic Management System 
        Performance Improvement Act of 1996, the Administrator 
        shall establish an advisory council which shall be 
        known as the Federal Aviation Management Advisory 
        Council (in this subsection referred to as the 
        ``Council''). With respect to Administration 
        management, policy, spending, funding, and regulatory 
        matters affecting the aviation industry, the Council 
        may submit comments, recommended modifications, and 
        dissenting views to the Administrator. The 
        Administrator shall include in any submission to 
        Congress, the Secretary, or the general public, and in 
        any submission for publication in the Federal Register, 
        a description of the comments, recommended 
        modifications, and dissenting views received from the 
        Council, together with the reasons for any differences 
        between the views of the Council and the views or 
        actions of the Administrator.
          [(2) Membership.--The Council shall consist of 13 
        members, who shall consist of--
                  [(A) a designee of the Secretary of 
                Transportation;
                  [(B) a designee of the Secretary of Defense;
                  (C) 10 members representing aviation 
                interests, appointed by--
                          [(i) in the case of initial 
                        appointments to the Council, the 
                        President by and with the advice and 
                        consent of the Senate, except that 
                        initial appointments made after May 1, 
                        2003, shall be made by the Secretary of 
                        Transportation; and
                          [(ii) in the case of subsequent 
                        appointments to the Council, the 
                        Secretary of Transportation; and
                  [(D) 1 member appointed, from among 
                individuals who are the leaders of their 
                respective unions of air traffic control system 
                employees, by the Secretary of Transportation.
          [(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.
          [(4) Functions.--
                  [(A) In general.--
                          [(i) The Council shall provide advice 
                        and counsel to the Administrator on 
                        issues which affect or are affected by 
                        the operations of the Administrator. 
                        The Council shall function as an 
                        oversight resource for management, 
                        policy, spending, and regulatory 
                        matters under the jurisdiction of the 
                        Administration.
                          [(ii) The Council shall review the 
                        rulemaking cost-benefit analysis 
                        process and develop recommendations to 
                        improve the analysis and ensure that 
                        the public interest is fully protected.
                          [(iii) The Council shall review the 
                        process through which the 
                        Administration determines to use 
                        advisory circulars and service 
                        bulletins.
                  [(B) Meetings.--The Council shall meet on a 
                regular and periodic basis or at the call of 
                the chairman or of the Administrator.
                  [(C) Access to documents and staff.--The 
                Administration may give the Council or Air 
                Traffic Services Committee appropriate access 
                to relevant documents and personnel of the 
                Administration, and the Administrator shall 
                make available, consistent with the authority 
                to withhold commercial and other proprietary 
                information under section 552 of title 5 
                (commonly known as the ``Freedom of Information 
                Act''), cost data associated with the 
                acquisition and operation of air traffic 
                service systems. Any member of the Council or 
                Air Traffic Services Committee who receives 
                commercial or other proprietary data from the 
                Administrator shall be subject to the 
                provisions of section 1905 of title 18, 
                pertaining to unauthorized disclosure of such 
                information.
          [(5) Federal Advisory Committee Act not to apply.--
        The Federal Advisory Committee Act (5 U.S.C. App.) does 
        not apply to the Council, the Air Traffic Services 
        Committee, or such aviation rulemaking committees as 
        the Administrator shall designate.
          [(6) Administrative matters.--
                  [(A) Terms of members appointed under 
                paragraph (2)(c).--Members of the Council 
                appointed under paragraph (2)(C) shall be 
                appointed for a term of 3 years. Of the members 
                first appointed by the President under 
                paragraph (2)(C)--
                          [(i) 3 shall be appointed for terms 
                        of 1 year;
                          [(ii) 4 shall be appointed for terms 
                        of 2 years; and
                          [(iii) 3 shall be appointed for terms 
                        of 3 years.
                  [(B) Term for air traffic control 
                representative.--The member appointed under 
                paragraph (2)(D) shall be appointed for a term 
                of 3 years, except that the term of such 
                individual shall end whenever the individual no 
                longer meets the requirements of paragraph 
                (2)(D).
                  [(C) Terms for Air Traffic Services Committee 
                members.--The members appointed to the Air 
                Traffic Services Committee shall be appointed 
                for a term of 5 years, except that 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).
                  [(D) Reappointment.--An individual may not be 
                appointed to the Committee to more than two 5-
                year terms.
                  [(E) Vacancy.--Any vacancy on the Council or 
                Committee shall be filled in the same manner as 
                the original appointment, except that any 
                vacancy caused by a member appointed by the 
                President under paragraph (2)(C)(i) shall be 
                filled by the Secretary in accordance with 
                paragraph (2)(C)(ii). Any member appointed to 
                fill a vacancy occurring before the expiration 
                of the term for which the member's predecessor 
                was appointed shall be appointed for the 
                remainder of that term.
                  [(F) Continuation in office.--A member of the 
                Council or Committee whose term expires shall 
                continue to serve until the date on which the 
                member's successor takes office.
                  [(G) Removal.--Any member of the Council 
                appointed under paragraph (2)(D) may be removed 
                for cause by the President or Secretary whoever 
                makes the appointment. Any member of the 
                Committee may be removed for cause by the 
                Secretary.
                  [(H) Claims against members of Committee.--
                          [(i) In general.--A member appointed 
                        to the Committee shall have no personal 
                        liability under Federal law with 
                        respect to any claim arising out of or 
                        resulting from an act or omission by 
                        such member within the scope of service 
                        as a member of the Committee.
                          [(ii) Effect on other law.--This 
                        subparagraph shall not be construed--
                                  [(I) to affect any other 
                                immunity or protection that may 
                                be available to a member of the 
                                Subcommittee under applicable 
                                law with respect to such 
                                transactions;
                                  [(II) to affect any other 
                                right or remedy against the 
                                United States under applicable 
                                law; or
                                  [(III) to limit or alter in 
                                any way the immunities that are 
                                available under applicable law 
                                for Federal officers and 
                                employees.
                  [(I) Ethical considerations.--
                          [(i) Financial disclosure.--During 
                        the entire period that an individual is 
                        serving as a member of the Committee, 
                        such individual shall be treated as 
                        serving as an officer or employee 
                        referred to in section 101(f) of the 
                        Ethics in Government Act of 1978 for 
                        purposes of title I of such Act; except 
                        that section 101(d) of such Act shall 
                        apply without regard to the number of 
                        days of service in the position.
                          [(ii) Restrictions on post-
                        employment.--For purposes of section 
                        207(c) of title 18, an individual who 
                        is a member of the Committee shall be 
                        treated as an employee referred to in 
                        section 207(c)(2)(A)(i) of such title 
                        during the entire period the individual 
                        is a member of the Committee; except 
                        that subsections (c)(2)(B) and (f) of 
                        section 207 of such title shall not 
                        apply.
                  [(J) Chairman; vice chairman.--The Council 
                shall elect a chair and a vice chair from among 
                the members appointed under paragraph (2)(C), 
                each of whom shall serve for a term of 1 year. 
                The vice chair shall perform the duties of the 
                chairman in the absence of the chairman.
                  [(K) Travel and per diem.--Each member of the 
                Council or Committee shall be paid actual 
                travel expenses, and per diem in lieu of 
                subsistence expenses when away from his or her 
                usual place of residence, in accordance with 
                section 5703 of title 5.
                  [(L) Detail of personnel from the 
                administration.--The Administrator shall make 
                available to the Council or Committee such 
                staff, information, and administrative services 
                and assistance as may reasonably be required to 
                enable the Council or Committee to carry out 
                its responsibilities under this subsection.
          [(7) Air Traffic Services Committee.--
                  [(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'').
                  [(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.
                  [(D) General responsibilities.--
                          [(i) Oversight.--The Committee shall 
                        oversee the administration, management, 
                        conduct, direction, and supervision of 
                        the air traffic control system.
                          [(ii) Confidentiality.--The Committee 
                        shall ensure that appropriate 
                        confidentiality is maintained in the 
                        exercise of its duties.
                  [(E) Specific responsibilities.--The 
                Committee shall have the following specific 
                responsibilities:
                          [(i) Strategic plans.--To review, 
                        approve, and monitor the strategic plan 
                        for the air traffic control system, 
                        including the establishment of--
                                  [(I) a mission and 
                                objectives;
                                  [(II) standards of 
                                performance relative to such 
                                mission and objectives, 
                                including safety, efficiency, 
                                and productivity; and
                                  [(III) annual and long-range 
                                strategic plans.
                          [(ii) Modernization and 
                        improvement.--To review and approve--
                                  [(I) methods to accelerate 
                                air traffic control 
                                modernization and improvements 
                                in aviation safety related to 
                                air traffic control; and
                                  [(II) procurements of air 
                                traffic control equipment in 
                                excess of $ 100,000,000.
                          [(iii) Operational plans.--To review 
                        the operational functions of the air 
                        traffic control system, including--
                                  [(I) plans for modernization 
                                of the air traffic control 
                                system;
                                  [(II) plans for increasing 
                                productivity or implementing 
                                cost-saving measures; and
                                  [(III) plans for training and 
                                education.
                          [(iv) Management.--To--
                                  [(I) review and approve the 
                                Administrator's appointment of 
                                a Chief Operating Officer under 
                                section 106(r);
                                  [(II) review the 
                                Administrator's selection, 
                                evaluation, and compensation of 
                                senior executives of the 
                                Administration who have program 
                                management responsibility over 
                                significant functions of the 
                                air traffic control system;
                                  [(III) review and approve the 
                                Administrator's plans for any 
                                major reorganization of the 
                                Administration that would 
                                impact on the management of the 
                                air traffic control system;
                                  [(IV) review and approve the 
                                Administrator's cost accounting 
                                and financial management 
                                structure and technologies to 
                                help ensure efficient and cost-
                                effective air traffic control 
                                operation; and
                                  [(V) review the performance 
                                and compensation of managers 
                                responsible for major 
                                acquisition projects, including 
                                the ability of the managers to 
                                meet schedule and budget 
                                targets.
                          [(v) Budget.--To--
                                  [(I) review and make 
                                recommendations on the budget 
                                request of the Administration 
                                related to the air traffic 
                                control system prepared by the 
                                Administrator;
                                  [(II) submit such budget 
                                recommendations to the 
                                Secretary; and
                                  [(III) base such budget 
                                recommendations on the annual 
                                and long-range strategic plans.
                  [(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.
                  [(G) Administrative matters.--
                          [(i) Powers of chair.--Except as 
                        otherwise provided by a majority vote 
                        of the Committee, the powers of the 
                        chairperson shall include--
                                  [(I) establishing committees;
                                  [(II) setting meeting places 
                                and times;
                                  [(III) establishing meeting 
                                agendas; and
                                  [(IV) developing rules for 
                                the conduct of business.
                          [(ii) Meetings.--The Committee shall 
                        meet at least quarterly and at such 
                        other times as the chairperson 
                        determines appropriate.
                          [(iii) Quorum.--Three members of the 
                        Committee shall constitute a quorum. A 
                        majority of members present and voting 
                        shall be required for the Committee to 
                        take action.
                  [(H) Reports.--
                          [(i) Annual.--The Committee shall 
                        each year report with respect to the 
                        conduct of its responsibilities under 
                        this title to the Secretary, the 
                        Committee on Transportation and 
                        Infrastructure of the House of 
                        Representatives, and the Committee on 
                        Commerce, Science, and Transportation 
                        of the Senate.
                          [(ii) Additional report.--If a 
                        determination by the Committee under 
                        subparagraph (D)(i) that the 
                        organization and operation of the air 
                        traffic control system are not allowing 
                        the Administration to carry out its 
                        mission, the Committee shall report 
                        such determination to the Secretary, 
                        the Committee on Transportation and 
                        Infrastructure of the House of 
                        Representatives, and the Committee on 
                        Commerce, Science, and Transportation 
                        of the Senate.
                          [(iii) Action of Administrator on 
                        report.--Not later than 60 days after 
                        the date of a report of the Committee 
                        under this subparagraph, the 
                        Administrator shall take action with 
                        respect to such report. If the 
                        Administrator overturns a 
                        recommendation of the Committee, the 
                        Administrator shall report such action 
                        to the President, the Committee on 
                        Transportation and Infrastructure of 
                        the House of Representatives, and the 
                        Committee on Commerce, Science, and 
                        Transportation of the Senate.
                          [(iv) Comptroller General's report.--
                        Not later than April 30, 2003, the 
                        Comptroller General of the United 
                        States shall transmit to the Committee 
                        on Transportation and Infrastructure of 
                        the House of Representatives and the 
                        Committee on Commerce, Science, and 
                        Transportation of the Senate a report 
                        on the success of the Committee in 
                        improving the performance of the air 
                        traffic control system.
                  [(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.
          [(8) Air traffic control system defined.--In this 
        section, the term ``air traffic control system'' has 
        the meaning such term has under section 40102(a).]
  (p) Air Traffic Control Modernization Oversight Board.--
          (1) Establishment.--Within 90 days after the date of 
        enactment of the FAA Air Transportation Modernization 
        and Safety Improvement Act, the Secretary shall 
        establish and appoint the members of an advisory Board 
        which shall be known as the Air Traffic Control 
        Modernization Oversight Board.
          (2) Membership.--The Board shall be comprised of the 
        individual appointed or designated under section 302 of 
        the FAA Air Transportation Modernization and Safety 
        Improvement Act (who shall serve ex officio without the 
        right to vote) and 9 other members, who shall consist 
        of--
                  (A) the Administrator and a representative 
                from the Department of Defense;
                  (B) 1 member who shall have a fiduciary 
                responsibility to represent the public 
                interest; and
                  (C) 6 members representing aviation 
                interests, as follows:
                          (i) 1 representative that is the 
                        chief executive officer of an airport.
                          (ii) 1 representative that is the 
                        chief executive officer of a passenger 
                        or cargo air carrier.
                          (iii) 1 representative of a labor 
                        organization representing employees at 
                        the Federal Aviation Administration 
                        that are involved with the operation of 
                        the air traffic control system.
                          (iv) 1 representative with extensive 
                        operational experience in the general 
                        aviation community.
                          (v) 1 representative from an aircraft 
                        manufacturer.
                          (vi) 1 representative of a labor 
                        organization representing employees at 
                        the Federal Aviation Administration who 
                        are involved with maintenance of the 
                        air traffic control system.
          (3) Appointment and qualifications.--
                  (A) Members of the Board appointed under 
                paragraphs (2)(B) and (2)(C) shall be appointed 
                by the President, by and with the advice and 
                consent of the Senate.
                  (B) Members of the Board appointed under 
                paragraph (2)(B) shall be citizens of the 
                United States and 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--
                          (i) management of large service 
                        organizations;
                          (ii) customer service;
                          (iii) management of large 
                        procurements;
                          (iv) information and communications 
                        technology;
                          (v) organizational development; and
                          (vi) labor relations.
                  (C) Of the members first appointed under 
                paragraphs (2)(B) and (2)(C)--
                          (i) 2 shall be appointed for terms of 
                        1 year;
                          (ii) 1 shall be appointed for a term 
                        of 2 years;
                          (iii) 1 shall be appointed for a term 
                        of 3 years; and
                          (iv) 1 shall be appointed for a term 
                        of 4 years.
          (4) Functions.--
                  (A) In general.--The Board shall--
                          (i) review and provide advice on the 
                        Administration's modernization 
                        programs, budget, and cost accounting 
                        system;
                          (ii) review the Administration's 
                        strategic plan and make recommendations 
                        on the non-safety program portions of 
                        the plan, and provide advice on the 
                        safety programs of the plan;
                          (iii) review the operational 
                        efficiency of the air traffic control 
                        system and make recommendations on the 
                        operational and performance metrics for 
                        that system;
                          (iv) approve procurements of air 
                        traffic control equipment in excess of 
                        $100,000,000;
                          (v) approve by July 31 of each year 
                        the Administrator's budget request for 
                        facilities and equipment prior to its 
                        submission to the Office of Management 
                        and budget, including which programs 
                        are proposed to be funded from the Air 
                        Traffic control system Modernization 
                        Account of the Airport and Airway Trust 
                        Fund;
                          (vi) approve the Federal Aviation 
                        Administration's Capital Investment 
                        Plan prior to its submission to the 
                        Congress;
                          (vii) annually review and make 
                        recommendations on the NextGen 
                        Implementation Plan;
                          (viii) approve the Administrator's 
                        selection of the Chief NextGen Officer 
                        appointed or designated under section 
                        302(a) of the FAA Air Transportation 
                        Modernization and Safety Improvement 
                        Act; and
                          (ix) approve the selection of the 
                        head of the Joint Planning and 
                        Development Office.
                  (B) Meetings.--The Board shall meet on a 
                regular and periodic basis or at the call of 
                the Chairman or of the Administrator.
                  (C) Access to documents and staff.--The 
                Administration may give the Board appropriate 
                access to relevant documents and personnel of 
                the Administration, and the Administrator shall 
                make available, consistent with the authority 
                to withhold commercial and other proprietary 
                information under section 552 of title 5, cost 
                data associated with the acquisition and 
                operation of air traffic control systems. Any 
                member of the Board who receives commercial or 
                other proprietary data from the Administrator 
                shall be subject to the provisions of section 
                1905 of title 18, pertaining to unauthorized 
                disclosure of such information.
          (5) Federal advisory committee act not to apply.--The 
        Federal Advisory Committee Act (5 U.S.C. App.) shall 
        not apply to the Board or such rulemaking committees as 
        the Administrator shall designate.
          (6) Administrative matters.--
                  (A) Terms of members.--Except as provided in 
                paragraph (3)(C), members of the Board 
                appointed under paragraph (2)(B) and (2)(C) 
                shall be appointed for a term of 4 years.
                  (B) Reappointment.--No individual may be 
                appointed to the Board for more than 8 years 
                total.
                  (C) Vacancy.--Any vacancy on the Board shall 
                be filled in the same manner as the original 
                position. Any member appointed to fill a 
                vacancy occurring before the expiration of the 
                term for which the member's predecessor was 
                appointed shall be appointed for a term of 4 
                years.
                  (D) Continuation in office.--A member of the 
                Board whose term expires shall continue to 
                serve until the date on which the member's 
                successor takes office.
                  (E) Removal.--Any member of the Board 
                appointed under paragraph (2)(B) or (2)(C) may 
                be removed by the President for cause.
                  (F) Claims against members of the board.--
                          (i) In general.--A member appointed 
                        to the Board shall have no personal 
                        liability under State or Federal law 
                        with respect to any claim arising out 
                        of or resulting from an act or omission 
                        by such member within the scope of 
                        service as a member of the Board.
                          (ii) Effect on other law.--This 
                        subparagraph shall not be construed--
                                  (I) to affect any other 
                                immunity or protection that may 
                                be available to a member of the 
                                Board under applicable law with 
                                respect to such transactions;
                                  (II) to affect any other 
                                right or remedy against the 
                                United States under applicable 
                                law; or
                                  (III) to limit or alter in 
                                any way the immunities that are 
                                available under applicable law 
                                for Federal officers and 
                                employees.
                  (G) Ethical considerations.--Each member of 
                the Board appointed under paragraph (2)(B) must 
                certify that the member--
                          (i) does not 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) does not engage in another 
                        business related to aviation or 
                        aeronautics; and
                          (iii) is not a member of any 
                        organization that engages, as a 
                        substantial part of its activities, in 
                        activities to influence aviation-
                        related legislation.
                  (H) Chairman; vice chairman.--The Board shall 
                elect a chair and a vice chair from among its 
                members, each of whom shall serve for a term of 
                2 years. The vice chair shall perform the 
                duties of the chairman in the absence of the 
                chairman.
                  (I) Compensaton.--No member shall receive any 
                compensation or other benefits from the Federal 
                Government for serving on the Board, except for 
                compensation benefits for injuries under 
                subchapter I of chapter 81 of title 5 and 
                except as provided under subparagraph (J).
                  (J) Expenses.--Each member of the Board shall 
                be paid actual travel expenses and per diem in 
                lieu of subsistence expenses when away from his 
                or her usual place of residence, in accordance 
                with section 5703 of title 5.
                  (K) Board resources.--From resources 
                otherwise available to the Administrator, the 
                Chairman shall appoint such staff to assist the 
                board and provide impartial analysis, and the 
                Administrator shall make available to the Board 
                such information and administrative services 
                and assistance, as may reasonably be required 
                to enable the Board to carry out its 
                responsibilities under this subsection.
                  (L) Quorum and voting.--A simple majority of 
                members of the Board duly appointed shall 
                constitute a quorum. A majority vote of members 
                present and voting shall be required for the 
                Committee to take action.
          (7) Air traffic control system defined.--In this 
        subsection, the term ``air traffic control system'' has 
        the meaning given that term in section 40102(a).
  (q) Aircraft Noise Ombudsman.--
          (1) Establishment.--There shall be in the 
        Administration an Aircraft Noise Ombudsman.
          (2) General duties and responsibilities.--The 
        Ombudsman shall--
                  (A) be appointed by the Administrator;
                  (B) serve as a liaison with the public on 
                issues regarding aircraft noise; and
                  (C) be consulted when the Administration 
                proposes changes in aircraft routes so as to 
                minimize any increases in aircraft noise over 
                populated areas.
          (3) Number of full-time equivalent employees.--The 
        appointment of an Ombudsman under this subsection shall 
        not result in an increase in the number of full-time 
        equivalent employees in the Administration.
  (r) Chief Operating Officer.--
          (1) In general.--
                  (A) Appointment.--There shall be a Chief 
                Operating Officer for the air traffic control 
                system to be appointed by the Administrator, 
                with the approval of the Air Traffic Services 
                Committee. The Chief Operating Officer shall 
                report directly to the Administrator and shall 
                be subject to the authority of the 
                Administrator.
                  (B) Qualifications.--The Chief Operating 
                Officer shall have a demonstrated ability in 
                management and knowledge of or experience in 
                aviation.
                  (C) Term.--The Chief Operating Officer shall 
                be appointed for a term of 5 years.
                  (D) Removal.--The Chief Operating Officer 
                shall serve at the pleasure of the 
                Administrator, except that the Administrator 
                shall make every effort to ensure stability and 
                continuity in the leadership of the air traffic 
                control system.
                  (E) Vacancy.--Any individual appointed to 
                fill a vacancy in the position of Chief 
                Operating Officer occurring before the 
                expiration of the term for which the 
                individual's predecessor was appointed shall be 
                appointed for the remainder of that term.
          (2) Compensation.--
                  (A) In general.--The Chief Operating Officer 
                shall be paid at an annual rate of basic pay to 
                be determined by the Administrator, with the 
                approval of the Air Traffic Services Committee. 
                The annual rate may not exceed the annual 
                compensation paid under section 102 of title 3. 
                The Chief Operating Officer shall be subject to 
                the post-employment provisions of section 207 
                of title 18 as if the position of Chief 
                Operating Officer were described in section 
                207(c)(2)(A)(i) of that title.
                  (B) Bonus.--In addition to the annual rate of 
                basic pay authorized by subparagraph (A), the 
                Chief Operating Officer may receive a bonus for 
                any calendar year not to exceed 30 percent of 
                the annual rate of basic pay, based upon the 
                Administrator's evaluation of the Chief 
                Operating Officer's performance in relation to 
                the performance goals set forth in the 
                performance agreement described in paragraph 
                (3).
          (3) Annual performance agreement.--The Administrator 
        and the Chief Operating Officer, in consultation with 
        the Air Traffic Services Committee, shall enter into an 
        annual performance agreement that sets forth measurable 
        organization and individual goals for the Chief 
        Operating Officer in key operational areas. The 
        agreement shall be subject to review and renegotiation 
        on an annual basis.
          (4) Annual performance report.--The Chief Operating 
        Officer shall prepare and transmit to the Secretary of 
        Transportation, the Committee on Transportation and 
        Infrastructure of the House of Representatives, and the 
        Committee on Commerce, Science, and Transportation of 
        the Senate an annual management report containing such 
        information as may be prescribed by the Secretary.
          (5) Responsibilities.--The Administrator may delegate 
        to the Chief Operating Officer, or any other authority 
        within the Administration responsibilities, including 
        the following:
                  (A) Strategic plans.--To implement the 
                strategic plan of the Administration for the 
                air traffic control system in order to 
                further--
                          (i) a mission and objectives;
                          (ii) standards of performance 
                        relative to such mission and 
                        objectives, including safety, 
                        efficiency, and productivity;
                          (iii) annual and long-range strategic 
                        plans; and
                          (iv) methods of the Administration to 
                        accelerate air traffic control 
                        modernization and improvements in 
                        aviation safety related to air traffic 
                        control.
                  (B) Operations.--To oversee the day-to-day 
                operational functions of the Administration for 
                air traffic control, including--
                          (i) modernization of the air traffic 
                        control system;
                          (ii) increasing productivity or 
                        implementing cost-saving measures;
                          (iii) training and education; and
                          (iv) the management of cost-
                        reimbursable contracts.
                  (C) Budget.--To--
                          (i) develop a budget request of the 
                        Administration related to the air 
                        traffic control system;
                          (ii) submit such budget request to 
                        the Administrator and the Committee; 
                        and
                          (iii) ensure that the budget request 
                        supports the agency's annual and long-
                        range strategic plans for air traffic 
                        control services.
  (s) Aviation Safety Whistleblower Investigation Office.--
          (1) Establishment.--There is established in the 
        Administration an Aviation Safety Whistleblower 
        Investigation Office.
          (2) Director.--
                  (A) Appointment.--The head of the Office 
                shall be the Director, who shall be appointed 
                by the Secretary of Transportation.
                  (B) Qualifications.--The Director shall have 
                a demonstrated ability in investigations and 
                knowledge of or experience in aviation.
                  (C) Term.--The Director shall be appointed 
                for a term of 5 years.
                  (D) Vacancy.--Any individual appointed to 
                fill a vacancy in the position of the Director 
                occurring before the expiration of the term for 
                which the individual's predecessor was 
                appointed shall be appointed for the remainder 
                of that term.
          (3) Complaints and investigations.--
                  (A) Authority of director.--The Director 
                shall--
                          (i) receive complaints and 
                        information submitted by employees of 
                        persons holding certificates issued 
                        under title 14, Code of Federal 
                        Regulations, and employees of the 
                        Administration concerning the possible 
                        existence of an activity relating to a 
                        violation of an order, regulation, or 
                        standard of the Administration or any 
                        other provision of Federal law relating 
                        to aviation safety;
                          (ii) assess complaints and 
                        information submitted under clause (i) 
                        and determine whether a substantial 
                        likelihood exists that a violation of 
                        an order, regulation, or standard of 
                        the Administration or any other 
                        provision of Federal law relating to 
                        aviation safety may have occurred; and
                          (iii) based on findings of the 
                        assessment conducted under clause (ii), 
                        make recommendations to the 
                        Administrator in writing for further 
                        investigation or corrective actions.
                  (B) Disclosure of identities.--The Director 
                shall not disclose the identity of an 
                individual who submits a complaint or 
                information under subparagraph (A)(i) unless--
                          (i) the individual consents to the 
                        disclosure in writing; or
                          (ii) the Director determines, in the 
                        course of an investigation, that the 
                        disclosure is unavoidable.
                  (C) Independence of director.--The Secretary, 
                the Administrator, or any officer or employee 
                of the Administration may not prevent or 
                prohibit the Director from initiating, carrying 
                out, or completing any assessment of a 
                complaint or information submitted subparagraph 
                (A)(i) or from reporting to Congress on any 
                such assessment.
                  (D) Access to information.--In conducting an 
                assessment of a complaint or information 
                submitted under subparagraph (A)(i), the 
                Director shall have access to all records, 
                reports, audits, reviews, documents, papers, 
                recommendations, and other material necessary 
                to determine whether a substantial likelihood 
                exists that a violation of an order, 
                regulation, or standard of the Administration 
                or any other provision of Federal law relating 
                to aviation safety may have occurred.
                  (4) Responses to recommendations.--The 
                Administrator shall respond to a recommendation 
                made by the Director under subparagraph 
                (A)(iii) in writing and retain records related 
                to any further investigations or corrective 
                actions taken in response to the 
                recommendation.
          (5) Incident reports.--If the Director determines 
        there is a substantial likelihood that a violation of 
        an order, regulation, or standard of the Administration 
        or any other provision of Federal law relating to 
        aviation safety may have occurred that requires 
        immediate corrective action, the Director shall report 
        the potential violation expeditiously to the 
        Administrator and the Inspector General of the 
        Department of Transportation.
          (6) Reporting of criminal violations to inspector 
        general.--If the Director has reasonable grounds to 
        believe that there has been a violation of Federal 
        criminal law, the Director shall report the violation 
        expeditiously to the Inspector General.
          (7) Annual reports to congress.--Not later than 
        October 1 of each year, the Director shall submit to 
        Congress a report containing--
                  (A) information on the number of submissions 
                of complaints and information received by the 
                Director under paragraph (3)(A)(i) in the 
                preceding 12-month period;
                  (B) summaries of those submissions;
                  (C) summaries of further investigations and 
                corrective actions recommended in response to 
                the submissions; and
                  (D) summaries of the responses of the 
                Administrator to such recommendations.

                        TITLE 49. TRANSPORTATION

                 SUBTITLE II. OTHER GOVERNMENT AGENCIES

            CHAPTER 11. NATIONAL TRANSPORTATION SAFETY BOARD

                SUBCHAPTER IV. ENFORCEMENT AND PENALTIES

Sec. 1153. Judicial review

  (a) General.--The appropriate court of appeals of the United 
States or the United States Court of Appeals for the District 
of Columbia Circuit may review a final order of the National 
Transportation Safety Board under this chapter. A person 
disclosing a substantial interest in the order may apply for 
review by filing a petition not later than 60 days after the 
order of the Board is issued.
  (b) Persons seeking judicial review of aviation matters.--
          (1) A person disclosing a substantial interest in an 
        order related to an aviation matter issued by the Board 
        under this chapter may apply for review of the order by 
        filing a petition for review in the United States Court 
        of Appeals for the District of Columbia Circuit or in 
        the court of appeals of the United States for the 
        circuit in which the person resides or has its 
        principal place of business. The petition must be filed 
        not later than 60 days after the order is issued. The 
        court may allow the petition to be filed after the 60 
        days only if there was a reasonable ground for not 
        filing within that 60-day period.
          (2) When a petition is filed under paragraph (1) of 
        this subsection, the clerk of the court immediately 
        shall send a copy of the petition to the Board. The 
        Board shall file with the court a record of the 
        proceeding in which the order was issued.
          (3) When the petition is sent to the Board, the court 
        has exclusive jurisdiction to affirm, amend, modify, or 
        set aside any part of the order and may order the Board 
        to conduct further proceedings. After reasonable notice 
        to the Board, the court may grant interim relief by 
        staying the order or taking other appropriate action 
        when cause for its action exists. Findings of fact by 
        the Board, if supported by substantial evidence, are 
        conclusive.
          (4) In reviewing an order under this subsection, the 
        court may consider an objection to an order of the 
        Board only if the objection was made in the proceeding 
        conducted by the Board or if there was a reasonable 
        ground for not making the objection in the proceeding.
          (5) A decision by a court under this subsection may 
        be reviewed only by the Supreme Court under section 
        1254 of title 28.
  (c) Administrator seeking judicial review of aviation 
matters.--When the Administrator of the Federal Aviation 
Administration decides that an order of the Board under section 
[44709 or] section 44703(d), 44709, or 46301(d)(5) of this 
title will have a significant adverse impact on carrying out 
this chapter related to an aviation matter, the Administrator 
may obtain judicial review of the order under section 46110 of 
this title. The Administrator shall be made a party to the 
judicial review proceedings. Findings of fact of the Board are 
conclusive if supported by substantial evidence.
  (d) Commandant seeking judicial review of maritime matters.--
If the Commandant of the Coast Guard decides that an order of 
the Board issued pursuant to a review of a Coast Guard action 
under section 1133 of this title will have an adverse impact on 
maritime safety or security, the Commandant may obtain judicial 
review of the order under subsection (a). The Commandant, in 
the official capacity of the Commandant, shall be a party to 
the judicial review proceedings.

                    SUBTITLE VII--AVIATION PROGRAMS

                           SUBPART I--GENERAL

                    CHAPTER 401. GENERAL PROVISIONOS

Sec. 40102. Definitions

  (a) General Definitions.--In this part--
          (1) ``aeronautics'' means the science and art of 
        flight.
          (2) ``air carrier'' means a citizen of the United 
        States undertaking by any means, directly or 
        indirectly, to provide air transportation.
          (3) ``air commerce'' means foreign air commerce, 
        interstate air commerce, the transportation of mail by 
        aircraft, the operation of aircraft within the limits 
        of a Federal airway, or the operation of aircraft that 
        directly affects, or may endanger safety in, foreign or 
        interstate air commerce.
          (4) ``air navigation facility'' means a facility 
        used, available for use, or designed for use, in aid of 
        air navigation, including--
                  (A) a landing area;
                  [(B) a light;]
                  (B) runway lighting and airport surface 
                visual and other navigation aids;
                  (C) apparatus or equipment for distributing 
                [weather information, signaling, radio-
                directional finding, or radio or other 
                electromagnetic communication; and] 
                aeronautical and meteorological information to 
                air traffic control facilities or aircraft, 
                supplying communication, navigation or 
                surveillance equipment for air-to-ground or 
                air-to-air applications;
                  (D) [another structure] any structure, 
                equipment,  or mechanism for guiding or 
                controlling flight in the air or the landing 
                and takeoff of [aircraft.] aircraft; and
                  (E) buildings, equipment, and systems 
                dedicated to the National Airspace System.
          (5) ``air transportation'' means foreign air 
        transportation, interstate air transportation, or the 
        transportation of mail by aircraft.
          (6) ``aircraft'' means any contrivance invented, 
        used, or designed to navigate, or fly in, the air.
          (7) ``aircraft engine'' means an engine used, or 
        intended to be used, to propel an aircraft, including a 
        part, appurtenance, and accessory of the engine, except 
        a propeller.
          (8) ``airman'' means an individual--
                  (A) in command, or as pilot, mechanic, or 
                member of the crew, who navigates aircraft when 
                under way;
                  (B) except to the extent the Administrator of 
                the Federal Aviation Administration may provide 
                otherwise for individuals employed outside the 
                United States, who is directly in charge of 
                inspecting, maintaining, overhauling, or 
                repairing aircraft, aircraft engines, 
                propellers, or appliances; or
                  (C) who serves as an aircraft dispatcher or 
                air traffic control-tower operator.
          (9) ``airport'' means a landing area used regularly 
        by aircraft for receiving or discharging passengers or 
        cargo.
          (10) ``all-cargo air transportation'' means the 
        transportation by aircraft in interstate air 
        transportation of only property or only mail, or both.
          (11) ``appliance'' means an instrument, equipment, 
        apparatus, a part, an appurtenance, or an accessory 
        used, capable of being used, or intended to be used, in 
        operating or controlling aircraft in flight, including 
        a parachute, communication equipment, and another 
        mechanism installed in or attached to aircraft during 
        flight, and not a part of an aircraft, aircraft engine, 
        or propeller.
          (12) ``cargo'' means property, mail, or both.
          (13) ``charter air carrier'' means an air carrier 
        holding a certificate of public convenience and 
        necessity that authorizes it to provide charter air 
        transportation.
          (14) ``charter air transportation'' means charter 
        trips in air transportation authorized under this part.
          (15) ``citizen of the United States'' means--
                  (A) an individual who is a citizen of the 
                United States;
                  (B) a partnership each of whose partners is 
                an individual who is a citizen of the United 
                States; or
                  (C) a corporation or association organized 
                under the laws of the United States or a State, 
                the District of Columbia, or a territory or 
                possession of the United States, of which the 
                president and at least two-thirds of the board 
                of directors and other managing officers are 
                citizens of the United States, which is under 
                the actual control of citizens of the United 
                States, and in which at least 75 percent of the 
                voting interest is owned or controlled by 
                persons that are citizens of the United States.
          (16) ``civil aircraft'' means an aircraft except a 
        public aircraft.
          (17) ``civil aircraft of the United States'' means an 
        aircraft registered under chapter 441 of this title.
          (18) ``conditional sales contract'' means a 
        contract--
                  (A) for the sale of an aircraft, aircraft 
                engine, propeller, appliance, or spare part, 
                under which the buyer takes possession of the 
                property but title to the property vests in the 
                buyer at a later time on--
                          (i) paying any part of the purchase 
                        price;
                          (ii) performing another condition; or
                          (iii) the happening of a contingency; 
                        or
                  (B) to bail or lease an aircraft, aircraft 
                engine, propeller, appliance, or spare part, 
                under which the bailee or lessee--
                          (i) agrees to pay an amount 
                        substantially equal to the value of the 
                        property; and
                          (ii) is to become, or has the option 
                        of becoming, the owner of the property 
                        on complying with the contract.
          (19) ``conveyance'' means an instrument, including a 
        conditional sales contract, affecting title to, or an 
        interest in, property.
          (20) ``Federal airway'' means a part of the navigable 
        airspace that the Administrator designates as a Federal 
        airway.
          (21) ``foreign air carrier'' means a person, not a 
        citizen of the United States, undertaking by any means, 
        directly or indirectly, to provide foreign air 
        transportation.
          (22) ``foreign air commerce'' means the 
        transportation of passengers or property by aircraft 
        for compensation, the transportation of mail by 
        aircraft, or the operation of aircraft in furthering a 
        business or vocation, between a place in the United 
        States and a place outside the United States when any 
        part of the transportation or operation is by aircraft.
          (23) ``foreign air transportation'' means the 
        transportation of passengers or property by aircraft as 
        a common carrier for compensation, or the 
        transportation of mail by aircraft, between a place in 
        the United States and a place outside the United States 
        when any part of the transportation is by aircraft.
          (24) ``interstate air commerce'' means the 
        transportation of passengers or property by aircraft 
        for compensation, the transportation of mail by 
        aircraft, or the operation of aircraft in furthering a 
        business or vocation--
                  (A) between a place in--
                          (i) a State, territory, or possession 
                        of the United States and a place in the 
                        District of Columbia or another State, 
                        territory, or possession of the United 
                        States;
                          (ii) a State and another place in the 
                        same State through the airspace over a 
                        place outside the State;
                          (iii) the District of Columbia and 
                        another place in the District of 
                        Columbia; or
                          (iv) a territory or possession of the 
                        United States and another place in the 
                        same territory or possession; and
                  (B) when any part of the transportation or 
                operation is by aircraft.
          (25) ``interstate air transportation'' means the 
        transportation of passengers or property by aircraft as 
        a common carrier for compensation, or the 
        transportation of mail by aircraft--
                  (A) between a place in--
                          (i) a State, territory, or possession 
                        of the United States and a place in the 
                        District of Columbia or another State, 
                        territory, or possession of the United 
                        States;
                          (ii) Hawaii and another place in 
                        Hawaii through the airspace over a 
                        place outside Hawaii;
                          (iii) the District of Columbia and 
                        another place in the District of 
                        Columbia; or
                          (iv) a territory or possession of the 
                        United States and another place in the 
                        same territory or possession; and
                  (B) when any part of the transportation is by 
                aircraft.
          (26) ``intrastate air carrier'' means a citizen of 
        the United States undertaking by any means to provide 
        only intrastate air transportation.
          (27) ``intrastate air transportation'' means the 
        transportation by a common carrier of passengers or 
        property for compensation, entirely in the same State, 
        by turbojet-powered aircraft capable of carrying at 
        least 30 passengers.
          (28) ``landing area'' means a place on land or water, 
        including an airport or intermediate landing field, 
        used, or intended to be used, for the takeoff and 
        landing of aircraft, even when facilities are not 
        provided for sheltering, servicing, or repairing 
        aircraft, or for receiving or discharging passengers or 
        cargo.
          (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.
          (30) ``mail'' means United States mail and foreign 
        transit mail.
          (31) ``medium hub airport'' means a commercial 
        service airport (as defined in section 47102) that has 
        at least 0.25 percent but less than 1.0 percent of the 
        passenger boardings.
          (32) ``navigable airspace'' means airspace above the 
        minimum altitudes of flight prescribed by regulations 
        under this subpart and subpart III of this part, 
        including airspace needed to ensure safety in the 
        takeoff and landing of aircraft.
          (33) ``navigate aircraft'' and ``navigation of 
        aircraft'' include piloting aircraft.
          (34) ``nonhub airport'' means a commercial service 
        airport (as defined in section 47102) that has less 
        than 0.05 percent of the passenger boardings.
          (35) ``operate aircraft'' and ``operation of 
        aircraft'' mean using aircraft for the purposes of air 
        navigation, including--
                  (A) the navigation of aircraft; and
                  (B) causing or authorizing the operation of 
                aircraft with or without the right of legal 
                control of the aircraft.
          (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.
          (37) ``person'', in addition to its meaning under 
        section 1 of title 1, includes a governmental authority 
        and a trustee, receiver, assignee, and other similar 
        representative.
          (38) ``predatory'' means a practice that violates the 
        antitrust laws as defined in the first section of the 
        Clayton Act (15 U.S.C. 12).
          (39) ``price'' means a rate, fare, or charge.
          (40) ``propeller'' includes a part, appurtenance, and 
        accessory of a propeller.
          (41) ``public aircraft'' means any of the following:
                  (A) Except with respect to an aircraft 
                described in subparagraph (E), an aircraft used 
                only for the United States Government, except 
                as provided in section 40125(b).
                  (B) An aircraft owned by the Government and 
                operated by any person for purposes related to 
                crew training, equipment development, or 
                demonstration, except as provided in section 
                40125(b).
                  (C) An aircraft owned and operated by the 
                government of a State, the District of 
                Columbia, or a territory or possession of the 
                United States or a political subdivision of one 
                of these governments, except as provided in 
                section 40125(b).
                  (D) An aircraft exclusively leased for at 
                least 90 continuous days by the government of a 
                State, the District of Columbia, or a territory 
                or possession of the United States or a 
                political subdivision of one of these 
                governments, except as provided in section 
                40125(b).
                  (E) An aircraft owned or operated by the 
                armed forces or chartered to provide 
                transportation or other commercial air service 
                to the armed forces under the conditions 
                specified by section 40125(c). In the preceding 
                sentence, the term ``other commercial air 
                service'' means an aircraft operation that (i) 
                is within the United States territorial 
                airspace; (ii) the Administrator of the Federal 
                Aviation Administration determines is available 
                for compensation or hire to the public, and 
                (iii) must comply with all applicable civil 
                aircraft rules under title 14, Code of Federal 
                Regulations.
          (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.
          (43) ``spare part'' means an accessory, appurtenance, 
        or part of an aircraft (except an aircraft engine or 
        propeller), aircraft engine (except a propeller), 
        propeller, or appliance, that is to be installed at a 
        later time in an aircraft, aircraft engine, propeller, 
        or appliance.
          (44) ``State authority'' means an authority of a 
        State designated under State law--
                  (A) to receive notice required to be given a 
                State authority under subpart II of this part; 
                or
                  (B) as the representative of the State before 
                the Secretary of Transportation in any matter 
                about which the Secretary is required to 
                consult with or consider the views of a State 
                authority under subpart II of this part.
          (45) ``ticket agent'' means a person (except an air 
        carrier, a foreign air carrier, or an employee of an 
        air carrier or foreign air carrier) that as a principal 
        or agent sells, offers for sale, negotiates for, or 
        holds itself out as selling, providing, or arranging 
        for, air transportation.
          (46) ``United States'' means the States of the United 
        States, the District of Columbia, and the territories 
        and possessions of the United States, including the 
        territorial sea and the overlying airspace.
          (47) ``air traffic control system'' means the 
        combination of elements used to safely and efficiently 
        monitor, direct, control, and guide aircraft in the 
        United States and United States-assigned airspace, 
        including--
                  (A) allocated electromagnetic spectrum and 
                physical, real, personal, and intellectual 
                property assets making up facilities, 
                equipment, and systems employed to detect, 
                track, and guide aircraft movement;
                  (B) laws, regulations, orders, directives, 
                agreements, and licenses;
                  (C) published procedures that explain 
                required actions, activities, and techniques 
                used to ensure adequate aircraft separation; 
                and
                  (D) trained personnel with specific technical 
                capabilities to satisfy the operational, 
                engineering, management, and planning 
                requirements for air traffic control.
  (b) Limited Definition.--In subpart II of this part, 
``control'' means control by any means.

Sec. 40110. General procurement authority

  (a) General.--In carrying out this part, the Administrator of 
the Federal Aviation Administration--
          (1) to the extent that amounts are available for 
        obligation, may acquire services or, by condemnation or 
        otherwise, an interest in property, including an 
        interest in airspace immediately adjacent to and needed 
        for airports and other air navigation facilities owned 
        by the United States Government and operated by the 
        Administrator;
          (2) may dispose of an interest in property for 
        adequate [compensation; and] compensation, and the 
        amount received may be credited to the appropriation 
        current when the amount is received; and
          (3) may construct and improve laboratories and other 
        test facilities.
  (b) Purchase of Housing Units.--
          (1) Authority.--In carrying out this part, the 
        Administrator may purchase a housing unit (including a 
        condominium or a housing unit in a building owned by a 
        cooperative) that is located outside the contiguous 
        United States if the cost of the unit is $300,000 or 
        less.
          (2) Adjustments for inflation.--For fiscal years 
        beginning after September 30, 1997, the Administrator 
        may adjust the dollar amount specified in paragraph (1) 
        to take into account increases in local housing costs.
          (3) Continuing obligations.--Notwithstanding section 
        1341 of title 31, the Administrator may purchase a 
        housing unit under paragraph (1) even if there is an 
        obligation thereafter to pay necessary and reasonable 
        fees duly assessed upon such unit, including fees 
        related to operation, maintenance, taxes, and 
        insurance.
          (4) Certification to Congress.--The Administrator may 
        purchase a housing unit under paragraph (1) only if, at 
        least 30 days before completing the purchase, the 
        Administrator transmits 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--
                  (A) a description of the housing unit and its 
                price;
                  (B) a certification that the price does not 
                exceed the median price of housing units in the 
                area; and
                  (C) a certification that purchasing the 
                housing unit is the most cost-beneficial means 
                of providing necessary accommodations in 
                carrying out this part.
          (5) Payment of [fee] charge._The Administrator may 
        pay, when due, [fee] charge resulting from the purchase 
        of a housing unit under this subsection from any 
        amounts made available to the Administrator.
  (c) Duties and Powers.--When carrying out subsection (a) of 
this section, the Administrator of the Federal Aviation 
Administration may--
          (1) notwithstanding section 1341(a)(1) of title 31, 
        lease an interest in property for not more than 20 
        years;
          (2) consider the reasonable probable future use of 
        the underlying land in making an award for a 
        condemnation of an interest in airspace;
          (3) construct, or acquire an interest in, a public 
        building (as defined in section 3301(a) of title 40) 
        only under a delegation of authority from the 
        Administrator of General Services; and
          [(4) use procedures other than competitive procedures 
        only when the property or services needed by the 
        Administrator of the Federal Aviation Administration 
        are available from only one responsible source or only 
        from a limited number of responsible sources and no 
        other type of property or services will satisfy the 
        needs of the Administrator; and]
          [(5)] (4) dispose of property under subsection (a)(2) 
        of this section, except for airport and airway property 
        and technical equipment used for the special purposes 
        of the Administration, only under sections 121, 123, 
        and 126 and chapter 5 of title 40.
  (d) Acquisition Management System.--
          (1) In general.--In consultation with such non-
        governmental experts in acquisition management systems 
        as the Administrator may employ, and notwithstanding 
        provisions of Federal acquisition law, the 
        Administrator shall develop and implement an 
        acquisition management system for the Administration 
        that addresses the unique needs of the agency and, at a 
        minimum, 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.
          (2) Applicability of federal acquisition law.--The 
        following provisions of Federal acquisition law shall 
        not apply to the new acquisition management system 
        developed and implemented pursuant to paragraph (1):
                  (A) Title III of the Federal Property and 
                Administrative Services Act of 1949 (41 U.S.C. 
                252-266).
                  (B) The Office of Federal Procurement Policy 
                Act (41 U.S.C. 401 et seq.).
                  (C) The Federal Acquisition Streamlining Act 
                of 1994 (Public Law 103-355), 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.
                  (D) The Small Business Act (15 U.S.C. 631 et 
                seq.), except that all reasonable opportunities 
                to be awarded contracts shall be provided to 
                small business concerns and small business 
                concerns owned and controlled by socially and 
                economically disadvantaged individuals.
                  (E) The Competition in Contracting Act.
                  (F) Subchapter V of chapter 35 of title 31, 
                relating to the procurement protest system.
                  (G) The Federal Acquisition Regulation and 
                any laws not listed in subparagraphs (A) 
                through (F) providing authority to promulgate 
                regulations in the Federal Acquisition 
                Regulation.
          (3) Certain provisions of the office of federal 
        procurement policy act.--Notwithstanding paragraph 
        (2)(B), section 27 of the Office of Federal Procurement 
        Policy Act (41 U.S.C. 423) shall apply to the new 
        acquisition management system developed and implemented 
        under paragraph (1) with the following modifications:
                  (A) Subsections (f) and (g) shall not apply.
                  (B) Within 90 days after the date of the 
                enactment of the Wendell H. Ford Aviation 
                Investment and Reform Act for the 21st Century, 
                the Administrator shall adopt definitions for 
                the acquisition management system that are 
                consistent with the purpose and intent of the 
                Office of Federal Procurement Policy Act.
                  (C) After the adoption of those definitions, 
                the criminal, civil, and administrative 
                remedies provided under the Office of Federal 
                Procurement Policy Act apply to the acquisition 
                management system.
                  (D) In the administration of the acquisition 
                management system, the Administrator may take 
                adverse personnel action under section 
                27(e)(3)(A)(iv) of the Office of Federal 
                Procurement Policy Act in accordance with the 
                procedures contained in the Administration's 
                personnel management system.
          (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.
  (e) Prohibition on Release of Offeror Proposals.--
          (1) General rule.--Except as provided in paragraph 
        (2), a proposal in the possession or control of the 
        Administrator may not be made available to any person 
        under section 552 of title 5.
          (2) Exception.--Paragraph (1) shall not apply to any 
        portion of a proposal of an offeror the disclosure of 
        which is authorized by the Administrator pursuant to 
        procedures published in the Federal Register. The 
        Administrator shall provide an opportunity for public 
        comment on the procedures for a period of not less than 
        30 days beginning on the date of such publication in 
        order to receive and consider the views of all 
        interested parties on the procedures. The procedures 
        shall not take effect before the 60th day following the 
        date of such publication.
          (3) Proposal defined.--In this subsection, the term 
        ``proposal'' means information contained in or 
        originating from any proposal, including a technical, 
        management, or cost proposal, submitted by an offeror 
        in response to the requirements of a solicitation for a 
        competitive proposal.

Sec. 40113. Administrative

  (a) General Authority.--The Secretary of Transportation (or 
the Under Secretary of Transportation for Security with respect 
to security duties and powers designated to be carried out by 
the Under Secretary or the Administrator of the Federal 
Aviation Administration with respect to aviation safety duties 
and powers designated to be carried out by the Administrator) 
may take action the Secretary, Under Secretary, or 
Administrator, as appropriate, considers necessary to carry out 
this part, including conducting investigations, prescribing 
regulations, standards, and procedures, and issuing orders.
  (b) Hazardous Material.--In carrying out this part, the 
Secretary has the same authority to regulate the transportation 
of hazardous material by air that the Secretary has under 
section 5103 of this title. However, this subsection does not 
prohibit or regulate the transportation of a firearm (as 
defined in section 232 of title 18) or ammunition for a 
firearm, when transported by an individual for personal use.
  (c) Governmental Assistance.--The Secretary (or the 
Administrator of the Federal Aviation Administration with 
respect to aviation safety duties and powers designated to be 
carried out by the Administrator) may use the assistance of the 
Administrator of the National Aeronautics and Space 
Administration and any research or technical department, 
agency, or instrumentality of the United States Government on 
matters related to aircraft fuel and oil, and to the design, 
material, workmanship, construction, performance, maintenance, 
and operation of aircraft, aircraft engines, propellers, 
appliances, and air navigation facilities. Each department, 
agency, and instrumentality may conduct scientific and 
technical research, investigations, and tests necessary to 
assist the Secretary or Administrator of the Federal Aviation 
Administration in carrying out this part. This part does not 
authorize duplicating laboratory research activities of a 
department, agency, or instrumentality.
  (d) Indemnification.--The Under Secretary of Transportation 
for Security or the Administrator of the Federal Aviation 
Administration may indemnify an officer or employee of the 
Transportation Security Administration or Federal Aviation 
Administration, as the case may be, against a claim or judgment 
arising out of an act that the Under Secretary or 
Administrator, as the case may be, decides was committed within 
the scope of the official duties of the officer or employee.
  (e) Assistance to Foreign Aviation Authorities.--
          (1) Safety-related training and operational 
        services.--The Administrator may provide safety-related 
        training and operational services to foreign aviation 
        authorities (whether public or private) with or without 
        reimbursement, if the Administrator determines that 
        providing such services promotes aviation [safety.] 
        safety or efficiency. The Administrator is authorized 
        to participate in, and submit offers in response to, 
        competitions to provide these services, and to contract 
        with foreign aviation authorities to provide these 
        services consistent with the provisions under section 
        106(l)(6) of this title. The Administrator is also 
        authorized, notwithstanding any other provision of law 
        or policy, to accept payments in arrears. To the extent 
        practicable, air travel reimbursed under this 
        subsection shall be conducted on United States air 
        carriers.
          (2) Reimbursement sought.--The Administrator shall 
        actively seek reimbursement for services provided under 
        this subsection from foreign aviation authorities 
        capable of providing such reimbursement.
          (3) Crediting appropriations.--Funds received by the 
        Administrator pursuant to this section shall be 
        credited to the [appropriation from which the expenses 
        were incurred in providing such services.] 
        appropriation current when the expenditures are or were 
        paid, or the appropriation current when the amount is 
        received.
          (4) Reporting.--Not later than December 31, 1995, and 
        annually thereafter, the Administrator shall transmit 
        to Congress a list of the foreign aviation authorities 
        to which the Administrator provided services under this 
        subsection in the preceding fiscal year. Such list 
        shall specify the dollar value of such services and any 
        reimbursement received for such services.
  (f) Application of Certain Regulations to Alaska.--In 
amending title 14, Code of Federal Regulations, in a manner 
affecting intrastate aviation in Alaska, the Administrator of 
the Federal Aviation Administration shall consider the extent 
to which Alaska is not served by transportation modes other 
than aviation, and shall establish such regulatory distinctions 
as the Administrator considers appropriate.

[Sec. 40117. Passenger facility fees]

Sec. 40117. Passenger facility charges

  (a) Definitions.--In this section, the following definitions 
apply:
          (1) Airport, commercial service airport, and public 
        agency.--The terms ``airport'', ``commercial service 
        airport'', and ``public agency'' have the meaning those 
        terms have under section 47102.
          (2) Eligible agency.--The term ``eligible agency'' 
        means a public agency that controls a commercial 
        service airport.
          (3) Eligible airport-related project.--The term 
        ``eligible airport-related project'' means any of the 
        following projects:
                  (A) A project for airport development or 
                airport planning under subchapter I of chapter 
                471.
                  (B) A project for terminal development 
                described in section 47110(d).
                  (C) A project for costs of terminal 
                development referred to in subparagraph (B) 
                incurred after August 1, 1986, at an airport 
                that did not have more than .25 percent of the 
                total annual passenger boardings in the United 
                States in the most recent calendar year for 
                which data is available and at which total 
                passenger boardings declined by at least 16 
                percent between calendar year 1989 and calendar 
                year 1997.
                  (D) A project for airport noise capability 
                planning under section 47505.
                  (E) A project to carry out noise 
                compatibility measures eligible for assistance 
                under section 47504, whether or not a program 
                for those measures has been approved under 
                section 47504.
                  (F) A project for constructing gates and 
                related areas at which passengers board or exit 
                aircraft. In the case of a project required to 
                enable additional air service by an air carrier 
                with less than 50 percent of the annual 
                passenger boardings at an airport, the project 
                for constructing gates and related areas may 
                include structural foundations and floor 
                systems, exterior building walls and load-
                bearing interior columns or walls, windows, 
                door and roof systems, building utilities 
                (including heating, air conditioning, 
                ventilation, plumbing, and electrical service), 
                and aircraft fueling facilities adjacent to the 
                gate.
                  (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.
          (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.
          (5) Passenger facility [fee] charge._The term 
        ``passenger facility [fee''] charge'' means a [fee] 
        charge imposed under this section.
          (6) Passenger facility revenue.--The term ``passenger 
        facility revenue'' means revenue derived from a 
        passenger facility [fee.] fee.
  (b) General Authority.--(1) The Secretary of Transportation 
may authorize under this section an eligible agency to impose a 
passenger facility [fee] charge of $1, $2, or $3 on each paying 
passenger of an air carrier or foreign air carrier boarding an 
aircraft at an airport the agency controls to finance an 
eligible airport-related project, including making payments for 
debt service on indebtedness incurred to carry out the project, 
to be carried out in connection with the airport or any other 
airport the agency controls.
  (2) A State, political subdivision of a State, or authority 
of a State or political subdivision that is not the eligible 
agency may not regulate or prohibit the imposition or 
collection of a passenger facility [fee] charge or the use of 
the passenger facility revenue.
  (3) A passenger facility [fee] charge may be imposed on a 
passenger of an air carrier or foreign air carrier originating 
or connecting at the commercial service airport that the agency 
controls.
  (4) In lieu of authorizing a [fee] charge under paragraph 
(1), the Secretary may authorize under this section an eligible 
agency to impose a passenger facility [fee] charge of $4.00 or 
$4.50 on each paying passenger of an air carrier or foreign air 
carrier boarding an aircraft at an airport the agency controls 
to finance an eligible airport-related project, including 
making payments for debt service on indebtedness incurred to 
carry out the project, if the Secretary finds--
          (A) in the case of an airport that has more than .25 
        percent of the total number of annual boardings in the 
        United States, that the project will make a significant 
        contribution to improving air safety and security, 
        increasing competition among air carriers, reducing 
        current or anticipated congestion, or reducing the 
        impact of aviation noise on people living near the 
        airport; and
          (B) that the project cannot be paid for from funds 
        reasonably expected to be available for the programs 
        referred to in section 48103.
  (5) Maximum cost for certain low-emission technology 
projects.--The maximum cost that may be financed by imposition 
of a passenger facility [fee] charge 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.
  (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] charge 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.
  (7) Noise mitigation for certain schools.--
          (A) In general.--In addition to the uses specified in 
        paragraphs (1), (4), and (6), the Secretary may 
        authorize a passenger facility [fee] charge imposed 
        under paragraph (1) or (4) at a large hub airport that 
        is the subject of an amended judgment and final order 
        in condemnation filed on January 7, 1980, by the 
        Superior Court of the State of California for the 
        county of Los Angeles, to be used for a project to 
        carry out noise mitigation for a building, or for the 
        replacement of a relocatable building with a permanent 
        building, in the noise impacted area surrounding the 
        airport at which such building is used primarily for 
        educational purposes, notwithstanding the air easement 
        granted or any terms to the contrary in such judgment 
        and final order, if--
                  (i) the Secretary determines that the 
                building is adversely affected by airport 
                noise;
                  (ii) the building is owned or chartered by 
                the school district that was the plaintiff in 
                case number 986,442 or 986,446, which was 
                resolved by such judgment and final order;
                  (iii) the project is for a school identified 
                in 1 of the settlement agreements effective 
                February 16, 2005, between the airport and each 
                of the school districts;
                  (iv) in the case of a project to replace a 
                relocatable building with a permanent building, 
                the eligible project costs are limited to the 
                actual structural construction costs necessary 
                to mitigate aircraft noise in instructional 
                classrooms to an interior noise level meeting 
                current standards of the Federal Aviation 
                Administration; and
                  (v) the project otherwise meets the 
                requirements of this section for authorization 
                of a passenger facility [fee] charge.
          (B) Eligible project costs.--In subparagraph (A)(iv), 
        the term ``eligible project costs'' means the 
        difference between the cost of standard school 
        construction and the cost of construction necessary to 
        mitigate classroom noise to the standards of the 
        Federal Aviation Administration.
  [(c) Applications.--(1) An eligible agency must submit to the 
Secretary an application for authority to impose a passenger 
facility fee. The application shall contain information and be 
in the form that the Secretary may require by regulation.
  [(2) Before submitting an application, the eligible agency 
must provide reasonable notice to, and an opportunity for 
consultation with, air carriers and foreign air carriers 
operating at the airport. The Secretary shall prescribe 
regulations that define reasonable notice and contain at least 
the following requirements:
          [(A) The agency must provide written notice of 
        individual projects being considered for financing by a 
        passenger facility fee and the date and location of a 
        meeting to present the projects to air carriers and 
        foreign air carriers operating at the airport.
          [(B) Not later than 30 days after written notice is 
        provided under subparagraph (A) of this paragraph, each 
        air carrier and foreign air carrier operating at the 
        airport must provide to the agency written notice of 
        receipt of the notice. Failure of a carrier to provide 
        the notice may be deemed certification of agreement 
        with the project by the carrier under subparagraph (D) 
        of this paragraph.
          [(C) Not later than 45 days after written notice is 
        provided under subparagraph (A) of this paragraph, the 
        agency must conduct a meeting to provide air carriers 
        and foreign air carriers with descriptions of projects 
        and justifications and a detailed financial plan for 
        projects.
          [(D) Not later than 30 days after the meeting, each 
        air carrier and foreign air carrier must provide to the 
        agency certification of agreement or disagreement with 
        projects (or total plan for the projects). Failure to 
        provide the certification is deemed certification of 
        agreement with the project by the carrier. A 
        certification of disagreement is void if it does not 
        contain the reasons for the disagreement.
          [(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.
  [(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).
  [(4) After receiving an application, the Secretary may 
provide notice and an opportunity to air carriers, foreign air 
carriers, and other interested persons to comment on the 
application. The Secretary shall make a final decision on the 
application not later than 120 days after receiving it.]
  (c) Procedural Requirements for Imposition of Passenger 
Facility Charge.--
          (1) In general.--An eligible agency must submit to 
        those air carriers and foreign air carriers operating 
        at the airport with a significant business interest, as 
        defined in paragraph (3), and to the Secretary and make 
        available to the public annually a report, in the form 
        required by the Secretary, on the status of the 
        eligible agency's passenger facility charge program, 
        including--
                  (A) the total amount of program revenue held 
                by the agency at the beginning of the 12 months 
                covered by the report;
                  (B) the total amount of program revenue 
                collected by the agency during the period 
                covered by the report;
                  (C) the amount of expenditures with program 
                revenue made by the agency on each eligible 
                airport-related project during the period 
                covered by the report;
                  (D) each airport-related project for which 
                the agency plans to collect and use program 
                revenue during the next 12-month period covered 
                by the report, including the amount of revenue 
                projected to be used for such project;
                  (E) the level of program revenue the agency 
                plans to collect during the next 12-month 
                period covered by the report;
                  (F) a description of the notice and 
                consultation process with air carriers and 
                foreign air carriers under paragraph (3), and 
                with the public under paragraph (4), including 
                a copy of any adverse comments received and how 
                the agency responded; and
                  (G) any other information on the program that 
                the Secretary may require.
          (2) Implementation.--Subject to the requirements of 
        paragraphs (3), (4), (5), and (6), the eligible agency 
        may implement the planned collection and use of 
        passenger facility charges in accordance with its 
        report upon filing the report as required in paragraph 
        (1).
          (3) Consultation with carriers for new projects.--
                  (A) An eligible agency proposing to collect 
                or use passenger facility charge revenue for a 
                project not previously approved by the 
                Secretary or not included in a report required 
                by paragraph (1) that was submitted in a prior 
                year shall provide to air carriers and foreign 
                air carriers operating at the airport 
                reasonable notice, and an opportunity to 
                comment on the planned collection and use of 
                program revenue before providing the report 
                required under paragraph (1). The Secretary 
                shall prescribe by regulation what constitutes 
                reasonable notice under this paragraph, which 
                shall at a minimum include--
                          (i) that the eligible agency provide 
                        to air carriers and foreign air 
                        carriers operating at the airport 
                        written notice of the planned 
                        collection and use of passenger 
                        facility charge revenue;
                          (ii) that the notice include a full 
                        description and justification for a 
                        proposed project;
                          (iii) that the notice include a 
                        detailed financial plan for the 
                        proposed project; and
                          (iv) that the notice include the 
                        proposed level for the passenger 
                        facility charge.
                  (B) An eligible agency providing notice and 
                an opportunity for comment shall be deemed to 
                have satisfied the requirements of this 
                paragraph if the eligible agency provides such 
                notice to air carriers and foreign air carriers 
                that have a significant business interest at 
                the airport. For purposes of this subparagraph, 
                the term ``significant business interest'' 
                means an air carrier or foreign air carrier 
                that--
                          (i) had not less than 1.0 percent of 
                        passenger boardings at the airport in 
                        the prior calendar year;
                          (ii) had at least 25,000 passenger 
                        boardings at the airport in the prior 
                        calendar year; or
                          (iii) provides scheduled service at 
                        the airport.
                  (C) Not later than 45 days after written 
                notice is provided under subparagraph (A), each 
                air carrier and foreign air carrier may provide 
                written comments to the eligible agency 
                indicating its agreement or disagreement with 
                the project or, if applicable, the proposed 
                level for a passenger facility charge.
                  (D) The eligible agency may include, as part 
                of the notice and comment process, a 
                consultation meeting to discuss the proposed 
                project or, if applicable, the proposed level 
                for a passenger facility charge. If the agency 
                provides a consultation meeting, the written 
                comments specified in subparagraph (C) shall be 
                due not later than 30 days after the meeting.
          (4) Public notice and comment.--
                  (A) An eligible agency proposing to collect 
                or use passenger facility charge revenue for a 
                project not previously approved by the 
                Secretary or not included in a report required 
                by paragraph (1) that was filed in a prior year 
                shall provide reasonable notice and an 
                opportunity for public comment on the planned 
                collection and use of program revenue before 
                providing the report required in paragraph (1).
                  (B) The Secretary shall prescribe by 
                regulation what constitutes reasonable notice 
                under this paragraph, which shall at a minimum 
                require--
                          (i) that the eligible agency provide 
                        public notice of intent to collect a 
                        passenger facility charge so as to 
                        inform those interested persons and 
                        agencies that may be affected;
                          (ii) appropriate methods of 
                        publication, which may include notice 
                        in local newspapers of general 
                        circulation or other local media, or 
                        posting of the notice on the agency's 
                        Internet website; and
                          (iii) submission of public comments 
                        no later than 45 days after the date of 
                        the publication of the notice.
          (5) Objections.--
                  (A) Any interested person may file with the 
                Secretary a written objection to a proposed 
                project included in a notice under this 
                paragraph provided that the filing is made 
                within 30 days after submission of the report 
                specified in paragraph (1).
                  (B) The Secretary shall provide not less than 
                30 days for the eligible agency to respond to 
                any filed objection.
                  (C) Not later than 90 days after receiving 
                the eligible agency's response to a filed 
                objection, the Secretary shall make a 
                determination whether or not to terminate 
                authority to collect the passenger facility 
                charge for the project, based on the filed 
                objection. The Secretary shall state the 
                reasons for any determination. The Secretary 
                may only terminate authority if--
                          (i) the project is not an eligible 
                        airport related project;
                          (ii) the eligible agency has not 
                        complied with the requirements of this 
                        section or the Secretary's implementing 
                        regulations in proposing the project;
                          (iii) the eligible agency has been 
                        found to be in violation of section 
                        47107(b) of this title and has failed 
                        to take corrective action, prior to the 
                        filing of the objection; or
                          (iv) in the case of a proposed 
                        increase in the passenger facility 
                        charge level, the level is not 
                        authorized by this section.
                  (D) Upon issuance of a decision terminating 
                authority, the public agency shall prepare an 
                accounting of passenger facility revenue 
                collected under the terminated authority and 
                restore the funds for use on other authorized 
                projects.
                  (E) Except as provided in subparagraph (C), 
                the eligible agency may implement the planned 
                collection and use of a passenger facility 
                charge in accordance with its report upon 
                filing the report as specified in paragraph 
                (1)(A).
          (6) Approval requirement for increased passenger 
        facility charge or intermodal ground access project.--
                  (A) An eligible agency may not collect or use 
                a passenger facility charge to finance an 
                intermodal ground access project, or increase a 
                passenger facility charge, unless the project 
                is first approved by the Secretary in 
                accordance with this paragraph.
                  (B) The eligible agency may submit to the 
                Secretary an application for authority to 
                impose a passenger facility charge for an 
                intermodal ground access project or to increase 
                a passenger facility charge. The application 
                shall contain information and be in the form 
                that the Secretary may require by regulation 
                but, at a minimum, must include copies of any 
                comments received by the agency during the 
                comment period described by subparagraph (C).
                  (C) Before submitting an application under 
                this paragraph, an eligible agency must provide 
                air carriers and foreign air carriers operating 
                at the airport, and the public, reasonable 
                notice of and an opportunity to comment on a 
                proposed intermodal ground access project or 
                the increased passenger facility charge. Such 
                notice and opportunity to comment shall conform 
                to the requirements of paragraphs (3) and (4).
                  (D) After receiving an application, the 
                Secretary may provide air carriers, foreign air 
                carriers and other interested persons notice 
                and an opportunity to comment on the 
                application. The Secretary shall make a final 
                decision on the application not later than 120 
                days after receiving it.
  (d) Limitations on Approving Applications.--The Secretary may 
approve an application that an eligible agency has submitted 
under [subsection (c) of this section to finance a specific] 
subsection (c)(6) of this section to finance an intermodal 
ground access  project only if the Secretary finds, based on 
the application, that--
          (1) the amount and duration of the proposed passenger 
        facility [fee] charge will result in revenue (including 
        interest and other returns on the revenue) that is not 
        more than the amount necessary to finance the 
        [specific] project;
          [(2) each project is an eligible airport-related 
        project that will--
                  [(A) preserve or enhance capacity, safety, or 
                security of the national air transportation 
                system;
                  [(B) reduce noise resulting from an airport 
                that is part of the system; or
                  [(C) provide an opportunity for enhanced 
                competition between or among air carriers and 
                foreign air carriers;]
          (2) the project is an eligible airport-related 
        project; and;
          (3) the application includes adequate justification 
        for [each of the specific projects; and] the project.
          [(4) in the case of an application to impose a [fee] 
        charge of more than $3.00 for an eligible surface 
        transportation or terminal project, the agency has made 
        adequate provision for financing the airside needs of 
        the airport, including runways, taxiways, aprons, and 
        aircraft gates.]
  (e) Limitations on Imposing [fees] charges._[(1) An eligible 
agency may impose a passenger facility fee only--
          [(A) if the Secretary approves an application that 
        the agency has submitted under subsection (c) of this 
        section; and
          [(B) subject to terms the Secretary may prescribe to 
        carry out the objectives of this section.] (1) An 
        eligible agency may impose a passenger facility charge 
        only subject to terms the Secretary may prescribe to 
        carry out the objectives of this section.
  (2) A passenger facility [fee] charge may not be collected 
from a passenger--
          (A) for more than 2 boardings on a one-way trip or a 
        trip in each direction of a round trip;
          (B) for the boarding to an eligible place under 
        subchapter II of chapter 417 of this title for which 
        essential air service compensation is paid under 
        subchapter II;
          (C) enplaning at an airport if the passenger did not 
        pay for the air transportation which resulted in such 
        enplanement, including any case in which the passenger 
        obtained the ticket for the air transportation with a 
        frequent flier award coupon without monetary payment;
          (D) on flights, including flight segments, between 2 
        or more points in Hawaii;
          (E) in Alaska aboard an aircraft having a seating 
        capacity of less than 60 passengers; and
          (F) enplaning at an airport if the passenger did not 
        pay for the air transportation which resulted in such 
        enplanement due to charter arrangements and payment by 
        the Department of Defense.
  (f) Limitations on Contracts, Leases, and Use Agreements.--
(1) A contract between an air carrier or foreign air carrier 
and an eligible agency made at any time may not impair the 
authority of the agency to impose a passenger facility [fee] 
charge or to use the passenger facility revenue as provided in 
this section.
  (2) A project financed with a passenger facility [fee] charge 
may not be subject to an exclusive [long-term] lease or use 
agreement of an air carrier or foreign air carrier, as defined 
by regulations of the Secretary.
  (3) A lease or use agreement of an air carrier or foreign air 
carrier related to a project whose construction or expansion 
was financed with a passenger facility [fee] charge may not 
restrict the eligible agency from financing, developing, or 
assigning new capacity at the airport with passenger facility 
revenue.
  (g) Treatment of Revenue.--(1) Passenger facility revenue is 
not airport revenue for purposes of establishing a price under 
a contract between an eligible agency and an air carrier or 
foreign air carrier.
  (2) An eligible agency may not include in its price base the 
part of the capital costs of a project paid for by using 
passenger facility revenue to establish a price under a 
contract between the agency and an air carrier or foreign air 
carrier.
  (3) For a project for terminal development, gates and related 
areas, or a facility occupied or used by at least one air 
carrier or foreign air carrier on an exclusive or preferential 
basis, a price payable by an air carrier or foreign air carrier 
using the facilities must at least equal the price paid by an 
air carrier or foreign air carrier using a similar facility at 
the airport that was not financed with passenger facility 
revenue.
  (4) Passenger facility revenues that are held by an air 
carrier or an agent of the carrier after collection of a 
passenger facility [fee] charge constitute a trust fund that is 
held by the air carrier or agent for the beneficial interest of 
the eligible agency imposing the [fee] charge. Such carrier or 
agent holds neither legal nor equitable interest in the 
passenger facility revenues except for any handling [fee] 
charge or retention of interest collected on unremitted 
proceeds as may be allowed by the Secretary.
  (h) Compliance.--(1) As necessary to ensure compliance with 
this section, the Secretary shall prescribe regulations 
requiring recordkeeping and auditing of accounts maintained by 
an air carrier or foreign air carrier and its agent collecting 
a passenger facility [fee] charge and by the eligible agency 
imposing the [fee] charge.
  (2) The Secretary periodically shall audit and review the use 
by an eligible agency of passenger facility revenue. After 
review and a public hearing, the Secretary may end any part of 
the authority of the agency to impose a passenger facility 
[fee] charge to the extent the Secretary decides that the 
revenue is not being used as provided in this section.
  (3) The Secretary may, on complaint of an interested person 
or on the Secretary's own initiative, conduct an investigation 
into an eligible agency's collection and use of passenger 
facility charge revenue to determine whether a passenger 
facility charge is excessive or that passenger facility revenue 
is not being used as provided in this section. The Secretary 
shall prescribe regulations establishing procedures for 
complaints and investigations. The regulations may provide for 
the issuance of a final agency decision without resort to an 
oral evidentiary hearing. The Secretary shall not accept 
complaints filed under this paragraph until after the issuance 
of regulations establishing complaint procedures.
  [(3)] (4) The Secretary may set off amounts necessary to 
ensure compliance with this section against amounts otherwise 
payable to an eligible agency under subchapter I of chapter 471 
of this title if the Secretary decides a passenger facility 
[fee] charge is excessive or that passenger facility revenue is 
not being used as provided in this section.
  (i) Regulations.--The Secretary shall prescribe regulations 
necessary to carry out this section. The regulations--
          (1) may prescribe the time and form by which a 
        passenger facility [fee] charge takes effect;
          (2) shall--
                  (A) require an air carrier or foreign air 
                carrier and its agent to collect a passenger 
                facility [fee] charge that an eligible agency 
                imposes under this section;
                  (B) establish procedures for handling and 
                remitting money collected;
                  (C) ensure that the money, less a uniform 
                amount the Secretary determines reflects the 
                average necessary and reasonable expenses (net 
                of interest accruing to the carrier and agent 
                after collection and before remittance) 
                incurred in collecting and handling the [fee] 
                charge, is paid promptly to the eligible agency 
                for which they are collected; and
                  (D) require that the amount collected for any 
                air transportation be noted on the ticket for 
                that air transportation; and
          (3) may permit an eligible agency to request that 
        collection of a passenger facility [fee] charge be 
        waived for--
                  (A) passengers enplaned by any class of air 
                carrier or foreign air carrier if the number of 
                passengers enplaned by the carriers in the 
                class constitutes not more than one percent of 
                the total number of passengers enplaned 
                annually at the airport at which the [fee] 
                charge is imposed; or
                  (B) passengers enplaned on a flight to an 
                airport--
                          (i) that has fewer than 2,500 
                        passenger boardings each year and 
                        receives scheduled passenger service; 
                        or
                          (ii) in a community which has a 
                        population of less than 10,000 and is 
                        not connected by a land highway or 
                        vehicular way to the land-connected 
                        National Highway System within a State.
  (j) Limitation on Certain Actions.--A State, political 
subdivision of a State, or authority of a State or political 
subdivision that is not the eligible agency may not tax, 
regulate, or prohibit or otherwise attempt to control in any 
manner, the imposition or collection of a passenger facility 
[fee] charge or the use of the revenue from the passenger 
facility [fee] charge.
  (k) Competition Plans.--
          (1) In general.--Beginning in fiscal year 2001, no 
        eligible agency may impose a passenger facility [fee] 
        charge under this section with respect to a covered 
        airport (as such term is defined in section 47106(f)) 
        unless the agency has submitted to the Secretary a 
        written competition plan in accordance with such 
        section. This subsection does not apply to passenger 
        facility [fees] charges in effect before the date of 
        the enactment of this subsection.
          (2) Secretary shall ensure implementation and 
        compliance.--The Secretary shall review any plan 
        submitted under paragraph (1) to ensure that it meets 
        the requirements of this section, and shall review its 
        implementation from time-to-time to ensure that each 
        covered airport successfully implements its plan.
  (l) Pilot Program for Passenger Facility [Fee] Charge  
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] charges. An eligible 
        agency may impose in accordance with the provisions of 
        this subsection a passenger facility [fee] charge 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)] (c)(3) 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] charge 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] 
                charge is sought;
                  (B) the amount of revenue from passenger 
                facility [fees] charges that is proposed to be 
                collected for each project; and
                  (C) the level of the passenger facility [fee] 
                charge 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] charge 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] charge._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] charge 
        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 [October 1, 2009.] the date of 
        issuance of regulations to carry out subsection (c) of 
        this section, as amended by the FAA Air Transportation 
        Modernization and Safety Improvement Act.
          (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.
  (m) Financial Management of [Fees] Charges.--
          (1) Handling of [fees] charges._A covered air carrier 
        shall segregate in a separate account passenger 
        facility revenue equal to the average monthly liability 
        for [fees] charges 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] charges is entitled 
        to receive the interest on passenger facility [fee] 
        charge 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] 
        charges 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.
  (n) Alternative Passenger Facility Charge Collection Pilot 
Program.--
          (1) In general.--The Secretary shall establish and 
        conduct a pilot program at not more than 6 airports 
        under which an eligible agency may impose a passenger 
        facility charge under this section without regard to 
        the dollar amount limitations set forth in paragraph 
        (1) or (4) of subsection (b) if the participating 
        eligible agency meets the requirements of paragraph 
        (2).
          (2) Collection requirements.--
                  (A) Direct collection.--An eligible agency 
                participating in the pilot program--
                          (i) may collect the charge from the 
                        passenger at the facility, via the 
                        Internet, or in any other reasonable 
                        manner; but
                          (ii) may not require or permit the 
                        charge to be collected by an air 
                        carrier or foreign air carrier for the 
                        flight segment.
                  (B) PFC collection requirement not to 
                apply.--Subpart C of part 158 of title 14, Code 
                of Federal Regulations, does not apply to the 
                collection of the passenger facility charge 
                imposed by an eligible agency participating in 
                the pilot program.

Sec. 40122. Federal Aviation Administration personnel management system

  (a) In General.--
          (1) Consultation and negotiation.--In developing and 
        making changes to the personnel management system 
        initially implemented by the Administrator of the 
        Federal Aviation Administration on April 1, 1996, the 
        Administrator shall negotiate with the exclusive 
        bargaining representatives of employees of the 
        Administration certified under section 7111 of title 5 
        and consult with other employees of the Administration.
          [(2) Mediation.--If the Administrator does not reach 
        an agreement under paragraph (1) with the exclusive 
        bargaining representatives, the services of the Federal 
        Mediation and Conciliation Service shall be used to 
        attempt to reach such agreement. If the services of the 
        Federal Mediation and Conciliation Service do not lead 
        to an agreement, the Administrator's proposed change to 
        the personnel management system shall not take effect 
        until 60 days have elapsed after the Administrator has 
        transmitted the proposed change, along with the 
        objections of the exclusive bargaining representatives 
        to the change, and the reasons for such objections, to 
        Congress. The 60-day period shall not include any 
        period during which Congress has adjourned sine die.]
          (2) Dispute resolution.--
                  (A) Mediation.--If the Administrator does not 
                reach an agreement under paragraph (1) or 
                subsection (g)(2)(C) with the exclusive 
                bargaining representatives, the services of the 
                Federal Mediation and Conciliation Service 
                shall be used to attempt to reach such 
                agreement in accordance with part 1425 of title 
                29, Code of Federal Regulations. The 
                Administrator and bargaining representatives 
                may by mutual agreement adopt procedures for 
                the resolution of disputes or impasses arising 
                in the negotiation of a collective-bargaining 
                agreement.
                  (B) Binding arbitration.--If the services of 
                the Federal Mediation and Conciliation Service 
                under subparagraph (A) do not lead to an 
                agreement, the Administrator and the bargaining 
                representatives shall submit their issues in 
                controversy to the Federal Service Impasses 
                Panel in accordance with section 7119 of title 
                5. The Panel shall assist the parties in 
                resolving the impasse by asserting jurisdiction 
                and ordering binding arbitration by a private 
                arbitration board consisting of 3 members in 
                accordance with section 2471.6(a)(2)(ii) of 
                title 5, Code of Federal Regulations. The 
                executive director of the Panel shall request a 
                list of not less than 15 names of arbitrators 
                with Federal sector experience from the 
                director of the Federal Mediation and 
                Conciliation Service to be provided to the 
                Administrator and the bargaining 
                representatives. Within 10 days after receiving 
                the list, the parties shall each select 1 
                person. The 2 arbitrators shall then select a 
                third person from the list within 7 days. If 
                the 2 arbitrators are unable to agree on the 
                third person, the parties shall select the 
                third person by alternately striking names from 
                the list until only 1 name remains. If the 
                parties do not agree on the framing of the 
                issues to be submitted, the arbitration board 
                shall frame the issues. The arbitration board 
                shall give the parties a full and fair hearing, 
                including an opportunity to present evidence in 
                support of their claims, and an opportunity to 
                present their case in person, by counsel, or by 
                other representative as they may elect. 
                Decisions of the arbitration board shall be 
                conclusive and binding upon the parties. The 
                arbitration board shall render its decision 
                within 90 days after its appointment. The 
                Administrator and the bargaining representative 
                shall share costs of the arbitration equally. 
                The arbitration board shall take into 
                consideration the effect of its arbitration 
                decisions on the Federal Aviation 
                Administration's ability to attract and retain 
                a qualified workforce and the Federal Aviation 
                Administration's budget.
                  (C) Effect.--Upon reaching a voluntary 
                agreement or at the conclusion of the binding 
                arbitration under subparagraph (B) above, the 
                final agreement, except for those matters 
                decided by the arbitration board, shall be 
                subject to ratification by the exclusive 
                representative, if so requested by the 
                exclusive representative, and approval by the 
                head of the agency in accordance with 
                subsection (g)(2)(C).
                  (D) Enforcement.--Enforcement of the 
                provisions of this paragraph shall be in the 
                United States District Court for the District 
                of Columbia.
          (3) Cost savings and productivity goals.--The 
        Administration and the exclusive bargaining 
        representatives of the employees shall use every 
        reasonable effort to find cost savings and to increase 
        productivity within each of the affected bargaining 
        units.
          (4) Annual budget discussions.--The Administration 
        and the exclusive bargaining representatives of the 
        employees shall meet annually for the purpose of 
        finding additional cost savings within the 
        Administration's annual budget as it applies to each of 
        the affected bargaining units and throughout the 
        agency.
  (b) Expert Evaluation.--On the date that is 3 years after the 
personnel management system is implemented, the Administration 
shall employ outside experts to provide an independent 
evaluation of the effectiveness of the system within 3 months 
after such date. For this purpose, the Administrator may 
utilize the services of experts and consultants under section 
3109 of title 5 without regard to the limitation imposed by the 
last sentence of section 3109(b) of such title, and may 
contract on a sole source basis, notwithstanding any other 
provision of law to the contrary.
  (c) Pay Restriction.--No officer or employee of the 
Administration may receive an annual rate of basic pay in 
excess of the annual rate of basic pay payable to the 
Administrator.
  (d) Ethics.--The Administration shall be subject to Executive 
Order No. 12674 and regulations and opinions promulgated by the 
Office of Government Ethics, including those set forth in 
section 2635 of title 5 of the Code of Federal Regulations.
  (e) Employee Protections.--Until July 1, 1999, basic wages 
(including locality pay) and operational differential pay 
provided employees of the Administration shall not be 
involuntarily adversely affected by reason of the enactment of 
this section, except for unacceptable performance or by reason 
of a reduction in force or reorganization or by agreement 
between the Administration and the affected employees' 
exclusive bargaining representative.
  (f) Labor-Management Agreements.--Except as otherwise 
provided by this title, all labor-management agreements 
covering employees of the Administration that are in effect on 
the effective date of the Air Traffic Management System 
Performance Improvement Act of 1996 shall remain in effect 
until their normal expiration date, unless the Administrator 
and the exclusive bargaining representative agree to the 
contrary.
  (g) Personnel Management System.--
          (1) In general.--In consultation with the employees 
        of the Administration and such non-governmental experts 
        in personnel management systems as he may employ, and 
        notwithstanding the provisions of title 5 and other 
        Federal personnel laws, the Administrator shall develop 
        and implement, not later than January 1, 1996, a 
        personnel management system for the Administration that 
        addresses the unique demands on the agency's workforce. 
        Such a new system shall, at a minimum, provide for 
        greater flexibility in the hiring, training, 
        compensation, and location of personnel.
          (2) Applicability of title 5.--The provisions of 
        title 5 shall not apply to the new personnel management 
        system developed and implemented pursuant to paragraph 
        (1), with the exception of--
                  (A) [section 2302(b), relating to 
                whistleblower protection,] sections 2301 and 
                2302, including the provisions for 
                investigation and enforcement as provided in 
                chapter 12 of title 5;
                  (B) sections 3308-3320, relating to veterans' 
                preference;
                  (C) chapter 71, relating to labor-management 
                relations;
                  (D) section 7204, relating to 
                antidiscrimination;
                  (E) chapter 73, relating to suitability, 
                security, and conduct;
                  (F) chapter 81, relating to compensation for 
                work injury;
                  (G) chapters 83-85, 87, and 89, relating to 
                retirement, unemployment compensation, and 
                insurance coverage; [and]
                  (H) sections 1204, 1211-1218, 1221, and 7701-
                7703, relating to the Merit Systems Protection 
                [Board.] Board; [and]
                  (I) subsections (b), (c), and (d) of section 
                4507 (relating to Meritorious Executive or 
                Distinguished Executive rank awards), and 
                subsections (b) and (c) of section 4507a 
                (relating to Meritorious Senior Professional or 
                Distinguished Senior Professional rank awards), 
                except that--
                          (i) for purposes of applying such 
                        provisions to the personnel management 
                        system--
                                  (I) the term ``agency'' means 
                                the Department of 
                                Transportation;
                                  (II) the term ``senior 
                                executive'' means a Federal 
                                Aviation Administration 
                                executive;
                                  (III) the term ``career 
                                appointee'' means a Federal 
                                Aviation Administration career 
                                executive; and
                                  (IV) the term ``senior career 
                                employee'' means a Federal 
                                Aviation Administration career 
                                senior professional;
                          (ii) receipt by a career appointee of 
                        the rank of Meritorious Executive or 
                        Meritorious Senior Professional 
                        entitles such individual to a lump-sum 
                        payment of an amount equal to 20 
                        percent of annual basic pay, which 
                        shall be in addition to the basic pay 
                        paid under the Federal Aviation 
                        Administration Executive Compensation 
                        Plan; and
                          (iii) receipt by a career appointee 
                        of the rank of Distinguished Executive 
                        or Distinguished Senior Professional 
                        entitles the individual to a lump-sum 
                        payment of an amount equal to 35 
                        percent of annual basic pay, which 
                        shall be in addition to the basic pay 
                        paid under the Federal Aviation 
                        Administration Executive Compensation 
                        Plan;
                  (J) section 5596, relating to back pay; and
                  (K) sections 6381 through 6387, relating to 
                Family and Medical Leave.
          (3) Appeals to Merit Systems Protection Board.--Under 
        the new personnel management system developed and 
        implemented under paragraph (1), an employee of the 
        Administration may submit an appeal to the Merit 
        Systems Protection Board and may seek judicial review 
        of any resulting final orders or decisions of the Board 
        from any action that was appealable to the Board under 
        any law, rule, or regulation as of March 31, 1996. 
        Notwithstanding any other provision of law, retroactive 
        to April 1, 1996, the Board shall have the same 
        remedial authority over such employee appeals that it 
        had as of March 31, 1996.
          (4) Effective date.--This subsection shall take 
        effect on April 1, 1996.
  (h) Right To Contest Adverse Personnel Actions.--An employee 
of the Federal Aviation Administration who is the subject of a 
major adverse personnel action may contest the action either 
through any contractual grievance procedure that is applicable 
to the employee as a member of the collective bargaining unit 
or through the Administration's internal process relating to 
review of major adverse personnel actions of the 
Administration, known as Guaranteed Fair Treatment, or under 
section 40122(g)(3).
  (i) Election of Forum.--Where a major adverse personnel 
action may be contested through more than one of the indicated 
forums (such as the contractual grievance procedure, the 
Federal Aviation Administration's internal process, or that of 
the Merit Systems Protection Board), an employee must elect the 
forum through which the matter will be contested. Nothing in 
this section is intended to allow an employee to contest an 
action through more than one forum unless otherwise allowed by 
law.
  (j) Definition.--In this section, the term ``major adverse 
personnel action'' means a suspension of more than 14 days, a 
reduction in pay or grade, a removal for conduct or 
performance, a nondisciplinary removal, a furlough of 30 days 
or less (but not including placement in a nonpay status as the 
result of a lapse of appropriations or an enactment by 
Congress), or a reduction in force action.

Sec. 40128. Overflights of national parks

  (a) In General.--
          (1) General requirements.--A commercial air tour 
        operator may not conduct commercial air tour operations 
        over a national park or tribal lands, as defined by 
        this section, except--
                  (A) in accordance with this section;
                  (B) in accordance with conditions and 
                limitations prescribed for that operator by the 
                Administrator; [and]
                  (C) in accordance with any applicable air 
                tour management plan for the park or tribal 
                [lands.] lands; and
                  (D) in accordance with a voluntary agreement 
                between the commercial air tour operator and 
                appropriate representatives of the national 
                park or tribal lands, as the case may be.
          (2) Application for operating authority.--
                  (A) Application required.--Before commencing 
                commercial air tour operations over a national 
                park or tribal lands, a commercial air tour 
                operator shall apply to the Administrator for 
                authority to conduct the operations over the 
                park or tribal lands.
                  (B) Competitive bidding for limited capacity 
                parks.--Whenever an air tour management plan 
                limits the number of commercial air tour 
                operations over a national park during a 
                specified time frame, the Administrator, in 
                cooperation with the [Director,] secretary of 
                the Interior, shall issue operation 
                specifications to commercial air tour operators 
                that conduct such operations. The operation 
                specifications shall include such terms and 
                conditions as the Administrator and the 
                [Director] Secretary of the Interior find 
                necessary for management of commercial air tour 
                operations over the park. The Administrator, in 
                cooperation with the [Director] Secretary of 
                the Interior, shall develop an open competitive 
                process for evaluating proposals from persons 
                interested in providing commercial air tour 
                operations over the park. In making a selection 
                from among various proposals submitted, the 
                Administrator, in cooperation with the 
                [Director] Secretary of the Interior, shall 
                consider relevant factors, including--
                          (i) the safety record of the person 
                        submitting the proposal or pilots 
                        employed by the person;
                          (ii) any quiet aircraft technology 
                        proposed to be used by the person 
                        submitting the proposal;
                          (iii) the experience of the person 
                        submitting the proposal with commercial 
                        air tour operations over other national 
                        parks or scenic areas;
                          (iv) the financial capability of the 
                        person submitting the proposal;
                          (v) any training programs for pilots 
                        provided by the person submitting the 
                        proposal; and
                          (vi) responsiveness of the person 
                        submitting the proposal to any relevant 
                        criteria developed by the [National 
                        Park Service] Department of the 
                        Interior for the affected park.
                  (C) Number of operations authorized.--In 
                determining the number of authorizations to 
                issue to provide commercial air tour operations 
                over a national park, the Administrator, in 
                cooperation with the [Director] Secretary of 
                the Interior, shall take into consideration the 
                provisions of the air tour management plan, the 
                number of existing commercial air tour 
                operators and current level of service and 
                equipment provided by any such operators, and 
                the financial viability of each commercial air 
                tour operation.
                  (D) Cooperation with NPS.--Before granting an 
                application under this paragraph, the 
                Administrator, in cooperation with the 
                [Director] Secretary of the Interior, shall 
                develop an air tour management plan in 
                accordance with subsection (b) and implement 
                such plan.
                  (E) Time limit on response to ATMP 
                applications.--The Administrator shall make 
                every effort to act on any application under 
                this paragraph and issue a decision on the 
                application not later than 24 months after it 
                is received or amended.
                  (F) Priority.--In acting on applications 
                under this paragraph to provide commercial air 
                tour operations over a national park, the 
                Administrator shall give priority to an 
                application under this paragraph in any case in 
                which a new entrant commercial air tour 
                operator is seeking operating authority with 
                respect to that national park.
          (3) Exception.--Notwithstanding paragraph (1), 
        commercial air tour operators may conduct commercial 
        air tour operations over a national park under part 91 
        of the title 14, Code of Federal Regulations if--
                  (A) such activity is permitted under part 119 
                of such title;
                  (B) the operator secures a letter of 
                agreement from the Administrator and the 
                national park superintendent for that national 
                park describing the conditions under which the 
                operations will be conducted; and
                  (C) the total number of operations under this 
                exception is limited to not more than five 
                flights in any 30-day period over a particular 
                park.
          (4) Special rule for safety requirements.--
        Notwithstanding subsection (c), an existing commercial 
        air tour operator shall apply, not later than 90 days 
        after the date of the enactment of this section, for 
        operating authority under part 119, 121, or 135 of 
        title 14, Code of Federal Regulations. A new entrant 
        commercial air tour operator shall apply for such 
        authority before conducting commercial air tour 
        operations over a national park or tribal lands. The 
        Administrator shall make every effort to act on any 
        such application for a new entrant and issue a decision 
        on the application not later than 24 months after it is 
        received or amended.
  (b) Air Tour Management Plans.--
          (1) Establishment.--
                  (A) In general.--The Administrator, in 
                cooperation with the [Director] Secretary of 
                the Interior, shall establish an air tour 
                management plan for any national park or tribal 
                land for which such a plan is not in effect 
                whenever a person applies for authority to 
                conduct a commercial air tour operation over 
                the park. The air tour management plan shall be 
                developed by means of a public process in 
                accordance with paragraph (4).
                  (B) Objective.--The objective of any air tour 
                management plan shall be to develop acceptable 
                and effective measures to mitigate or prevent 
                the significant adverse impacts, if any, of 
                commercial air tour operations upon the natural 
                and cultural resources, visitor experiences, 
                and tribal lands.
          (2) Environmental determination.--In establishing an 
        air tour management plan under this subsection, the 
        Administrator and the [Director] Secretary of the 
        Interior shall each sign the environmental decision 
        document required by section 102 of the National 
        Environmental Policy Act of 1969 (42 U.S.C. 4332) which 
        may include a finding of no significant impact, an 
        environmental assessment, or an environmental impact 
        statement and the record of decision for the air tour 
        management plan.
          (3) Contents.--An air tour management plan for a 
        national park--
                  (A) may prohibit commercial air tour 
                operations over a national park in whole or in 
                part;
                  (B) may establish conditions for the conduct 
                of commercial air tour operations over a 
                national park, including commercial air tour 
                routes, maximum or minimum altitudes, time-of-
                day restrictions, restrictions for particular 
                events, maximum number of flights per unit of 
                time, intrusions on privacy on tribal lands, 
                and mitigation of noise, visual, or other 
                impacts;
                  (C) shall apply to all commercial air tour 
                operations over a national park that are also 
                within 1/2 mile outside the boundary of a 
                national park;
                  (D) shall include incentives (such as 
                preferred commercial air tour routes and 
                altitudes, relief from caps and curfews) for 
                the adoption of quiet aircraft technology by 
                commercial air tour operators conducting 
                commercial air tour operations over a national 
                park;
                  (E) shall provide for the initial allocation 
                of opportunities to conduct commercial air tour 
                operations over a national park if the plan 
                includes a limitation on the number of 
                commercial air tour operations for any time 
                period; and
                  (F) shall justify and document the need for 
                measures taken pursuant to subparagraphs (A) 
                through (E) and include such justifications in 
                the record of decision.
          (4) Procedure.--In establishing an air tour 
        management plan for a national park or tribal lands, 
        the Administrator and the [Director] Secretary of the 
        Interior shall--
                  (A) hold at least one public meeting with 
                interested parties to develop the air tour 
                management plan;
                  (B) publish the proposed plan in the Federal 
                Register for notice and comment and make copies 
                of the proposed plan available to the public;
                  (C) comply with the regulations set forth in 
                sections 1501.3 and 1501.5 through 1501.8 of 
                title 40, Code of Federal Regulations (for 
                purposes of complying with the regulations, the 
                Federal Aviation Administration shall be the 
                lead agency and the [National Park Service] 
                Department of the Interior is a cooperating 
                agency); and
                  (D) solicit the participation of any Indian 
                tribe whose tribal lands are, or may be, 
                overflown by aircraft involved in a commercial 
                air tour operation over the park or tribal 
                lands to which the plan applies, as a 
                cooperating agency under the regulations 
                referred to in subparagraph (C).
          (5) Judicial review.--An air tour management plan 
        developed under this subsection shall be subject to 
        judicial review.
          (6) Amendments.--The Administrator, in cooperation 
        with the [Director] Secretary of the Interior, may make 
        amendments to an air tour management plan. Any such 
        amendments shall be published in the Federal Register 
        for notice and comment. A request for amendment of an 
        air tour management plan shall be made in such form and 
        manner as the Administrator may prescribe.
  (c) Interim Operating Authority.--
          (1) In general.--Upon application for operating 
        authority, the Administrator shall grant interim 
        operating authority under this subsection to a 
        commercial air tour operator for commercial air tour 
        operations over a national park or tribal lands for 
        which the operator is an existing commercial air tour 
        operator.
          (2) Requirements and limitations.--Interim operating 
        authority granted under this subsection--
                  (A) shall provide annual authorization only 
                for the greater of--
                          (i) the number of flights used by the 
                        operator to provide the commercial air 
                        tour operations over a national park 
                        within the 12-month period prior to the 
                        date of the enactment of this section; 
                        or
                          (ii) the average number of flights 
                        per 12-month period used by the 
                        operator to provide such operations 
                        within the 36-month period prior to 
                        such date of enactment, and, for 
                        seasonal operations, the number of 
                        flights so used during the season or 
                        seasons covered by that 12-month 
                        period;
                  (B) may not provide for an increase in the 
                number of commercial air tour operations over a 
                national park conducted during any time period 
                by the commercial air tour operator above the 
                number that the air tour operator was 
                originally granted unless such an increase is 
                agreed to by the Administrator and the 
                [Director] Secretary of the Interior;
                  (C) shall be published in the Federal 
                Register to provide notice and opportunity for 
                comment;
                  (D) may be revoked by the Administrator for 
                cause;
                  (E) shall terminate 180 days after the date 
                on which an air tour management plan is 
                established for the park or tribal lands;
                  (F) shall promote protection of national park 
                resources, visitor experiences, and tribal 
                lands;
                  (G) shall promote safe commercial air tour 
                operations;
                  (H) shall promote the adoption of quiet 
                technology, as appropriate; and
                  [(I) shall allow for modifications of the 
                interim operating authority based on experience 
                if the modification improves protection of 
                national park resources and values and of 
                tribal lands.]
                  (I) may allow for modifications of the 
                interim operating authority without further 
                environmental process, if--
                          (i) adequate information on the 
                        existing and proposed operations of the 
                        commercial air tour operator is 
                        provided to the Administrator and the 
                        Secretary by the operator seeking 
                        operating authority;
                          (ii) the Administrator determines 
                        that the modifications would not 
                        adversely affect aviation safety or the 
                        management of the national airspace 
                        system; and
                          (iii) the Secretary agrees that the 
                        modifications would not adversely 
                        affect park resources and visitor 
                        experiences.
          (3) New entrant air tour operators.--
                  (A) In general.--The Administrator, in 
                cooperation with the [Director] Secretary of 
                the Interior, may grant interim operating 
                authority under this paragraph to an air tour 
                operator for a national park or tribal lands 
                for which that operator is a new entrant air 
                tour operator if the Administrator determines 
                the authority is necessary to ensure 
                competition in the provision of commercial air 
                tour operations over the park or tribal lands.
                  (B) Safety limitation.--The Administrator may 
                not grant interim operating authority under 
                subparagraph (A) if the Administrator 
                determines that it would create a safety 
                problem at the park or on the tribal lands, or 
                the [Director] Secretary of the Interior 
                determines that it would create a noise problem 
                at the park or on the tribal lands.
                  (C) ATMP limitation.--The Administrator may 
                grant interim operating authority under 
                subparagraph (A) of this paragraph only if the 
                air tour management plan for the park or tribal 
                lands to which the application relates has not 
                been developed within 24 months after the date 
                of the enactment of this section.
  (d) Exemptions.--This section shall not apply to--
          (1) the Grand Canyon National Park; or
          (2) tribal lands within or abutting the Grand Canyon 
        National Park.
  (e) Lake Mead.--This section shall not apply to any air tour 
operator while flying over or near the Lake Mead National 
Recreation Area, solely as a transportation route, to conduct 
an air tour over the Grand Canyon National Park. For purposes 
of this subsection, an air tour operator flying over the Hoover 
Dam in the Lake Mead National Recreation Area en route to the 
Grand Canyon National Park shall be deemed to be flying solely 
as a transportation route.
  (f) Definitions.--In this section, the following definitions 
apply:
          (1) Commercial air tour operator.--The term 
        ``commercial air tour operator'' means any person who 
        conducts a commercial air tour operation over a 
        national park.
          (2) Existing commercial air tour operator.--The term 
        ``existing commercial air tour operator'' means a 
        commercial air tour operator that was actively engaged 
        in the business of providing commercial air tour 
        operations over a national park at any time during the 
        12-month period ending on the date of the enactment of 
        this section.
          (3) New entrant commercial air tour operator.--The 
        term ``new entrant commercial air tour operator'' means 
        a commercial air tour operator that--
                  (A) applies for operating authority as a 
                commercial air tour operator for a national 
                park or tribal lands; and
                  (B) has not engaged in the business of 
                providing commercial air tour operations over 
                the national park or tribal lands in the 12-
                month period preceding the application.
          (4) Commercial air tour operation over a national 
        park.--
                  (A) In general.--The term ``commercial air 
                tour operation over a national park'' means any 
                flight, conducted for compensation or hire in a 
                powered aircraft where a purpose of the flight 
                is sightseeing over a national park, within 1/2 
                mile outside the boundary of any national park 
                (except the Grand Canyon National Park), or 
                over tribal lands (except those within or 
                abutting the Grand Canyon National Park), 
                during which the aircraft flies--
                          (i) below a minimum altitude, 
                        determined by the Administrator in 
                        cooperation with the Director, above 
                        ground level (except solely for 
                        purposes of takeoff or landing, or 
                        necessary for safe operation of an 
                        aircraft as determined under the rules 
                        and regulations of the Federal Aviation 
                        Administration requiring the pilot-in-
                        command to take action to ensure the 
                        safe operation of the aircraft); or
                          (ii) less than 1 mile laterally from 
                        any geographic feature within the park 
                        (unless more than 1/2 mile outside the 
                        boundary).
                  (B) Factors to consider.--In making a 
                determination of whether a flight is a 
                commercial air tour operation over a national 
                park for purposes of this section, the 
                Administrator may consider--
                          (i) whether there was a holding out 
                        to the public of willingness to conduct 
                        a sightseeing flight for compensation 
                        or hire;
                          (ii) whether a narrative that 
                        referred to areas or points of interest 
                        on the surface below the route of the 
                        flight was provided by the person 
                        offering the flight;
                          (iii) the area of operation;
                          (iv) the frequency of flights 
                        conducted by the person offering the 
                        flight;
                          (v) the route of flight;
                          (vi) the inclusion of sightseeing 
                        flights as part of any travel 
                        arrangement package offered by the 
                        person offering the flight;
                          (vii) whether the flight would have 
                        been canceled based on poor visibility 
                        of the surface below the route of the 
                        flight; and
                          (viii) any other factors that the 
                        Administrator and the Director consider 
                        appropriate.
          (5) National park.--The term ``national park'' means 
        any unit of the National Park System.
          (6) Tribal lands.--The term ``tribal lands'' means 
        Indian country (as that term is defined in section 1151 
        of title 18) that is within or abutting a national 
        park.
          (7) Administrator.--The term ``Administrator'' means 
        the Administrator of the Federal Aviation 
        Administration.
          [(8) Director.--The term ``Director'' means the 
        Director of the National Park Service.]

Sec. 40130. FAA access to criminal history records or databases systems

  (a) Access to Records or Databases Systems.--
          (1) In general.--Notwithstanding section 534 of title 
        28 and the implementing regulations for such section 
        (28 C.F.R. part 20), the Administrator of the Federal 
        Aviation Administration is authorized to access a 
        system of documented criminal justice information 
        maintained by the Department of Justice or by a State 
        but may do so only for the purpose of carrying out its 
        civil and administrative responsibilities to protect 
        the safety and security of the National Airspace System 
        or to support the missions of the Department of 
        Justice, the Department of Homeland Security, and other 
        law enforcement agencies. The Administrator shall be 
        subject to the same conditions or procedures 
        established by the Department of Justice or State for 
        access to such an information system by other 
        governmental agencies with access to the system.
          (2) Limitation.The Administrator may not use the 
        access authorized under paragraph (1) to conduct 
        criminal investigations.
  (b) Designated Employees.--The Administrator shall, by order, 
designate those employees of the Administration who shall carry 
out the authority described in subsection (a). Such designated 
employees may--
          (1) have access to and receive criminal history, 
        driver, vehicle, and other law enforcement information 
        contained in the law enforcement databases of the 
        Department of Justice, or of any jurisdiction in a 
        State in the same manner as a police officer employed 
        by a State or local authority of that State who is 
        certified or commissioned under the laws of that State;
          (2) use any radio, data link, or warning system of 
        the Federal Government and of any jurisdiction in a 
        State that provides information about wanted persons, 
        be-on-the-lookout notices, or warrant status or other 
        officer safety information to which a police officer 
        employed by a State or local authority in that State 
        who is certified or commission under the laws of that 
        State has access and in the same manner as such police 
        officer; or
          (3) receive Federal, State, or local government 
        communications with a police officer employed by a 
        State or local authority in that State in the same 
        manner as a police officer employed by a State or local 
        authority in that State who is commissioned under the 
        laws of that State.
  (c) System of Documented Criminal Justice Information 
Defined.--In this section the term ``system of documented 
criminal justice information'' means any law enforcement 
databases, systems, or communications containing information 
concerning identification, criminal history, arrests, 
convictions, arrest warrants, or wanted or missing persons, 
including the National Crime Information Center and its 
incorporated criminal history databases and the National Law 
Enforcement Telecommunications System.

                    PART A--AIR COMMERCE AND SAFETY

                    SUBPART II--ECONOMIC REGULATIONS

                  CHAPTER 417. OPERATIONS OF CARRIERS

SUBCHAPTER I--REQUIREMENTS

           *       *       *       *       *       *       *


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.
  (f) Chronically Delayed Flights.--
          (1) Publication of list of flights.--Each air carrier 
        holding a certificate issued under section 41102 that 
        conducts scheduled passenger air transportation shall, 
        on a monthly basis--
                  (A) publish and update on the Internet 
                website of the air carrier a list of 
                chronically delayed flights operated by such 
                air carrier; and
                  (B) share such list with each entity that is 
                authorized to book passenger air transportation 
                for such air carrier for inclusion on the 
                Internet website of such entity.
          (2) Disclosure to customers when purchasing 
        tickets.--For each individual who books passenger air 
        transportation on the Internet website of an air 
        carrier, or the Internet website of an entity that is 
        authorized to book passenger air transportation for an 
        air carrier, for any flight for which data is reported 
        to the Department of Transportation under part 234 of 
        title 14, Code of Federal Regulations, such air carrier 
        or entity, as the case may be, shall prominently 
        disclose to such individual, before such individual 
        makes such booking, the following:
                  (A) The on-time performance for the flight if 
                the flight is a chronically delayed flight.
                  (B) The cancellation rate for the flight if 
                the flight is a chronically canceled flight.
          (3) Definitions.--In this subsection:
                  (A) Chronically delayed flight.--The term 
                ``chronically delayed flight'' means a 
                regularly scheduled flight that has failed to 
                arrive on time (as such term is defined in 
                section 234.2 of title 14, Code of Federal 
                Regulations) at least 40 percent of the time 
                during the most recent 3-month period for which 
                data is available.
                  (B) Chronically canceled flight.--The term 
                ``chronically canceled flight'' means a 
                regularly scheduled flight at least 30 percent 
                of the departures of which have been canceled 
                during the most recent 3-month period for which 
                data is available.

           *       *       *       *       *       *       *


Sec. 41724. Musical instruments

  (a) In General.--
          (1) Small instruments as carry-on baggage.--An air 
        carrier providing air transportation shall permit a 
        passenger to carry a violin, guitar, or other musical 
        instrument in the aircraft cabin without charge if--
                  (A) the instrument can be stowed safely in a 
                suitable baggage compartment in the aircraft 
                cabin or under a passenger seat; and
                  (B) there is space for such stowage at the 
                time the passenger boards the aircraft.
          (2) Larger instruments as carry-on baggage.--An air 
        carrier providing air transportation shall permit a 
        passenger to carry a musical instrument that is too 
        large to meet the requirements of paragraph (1) in the 
        aircraft cabin without charge if--
                  (A) the instrument is contained in a case or 
                covered so as to avoid injury to other 
                passengers;
                  (B) the weight of the instrument, including 
                the case or covering, does not exceed 165 
                pounds;
                  (C) the instrument can be secured by a seat 
                belt to avoid shifting during flight;
                  (D) the instrument does not restrict access 
                to, or use of, any required emergency exit, 
                regular exit, or aisle;
                  (E) the instrument does not obscure any 
                passenger's view of any illuminated exit, 
                warning, or other informational sign;
                  (F) neither the instrument nor the case 
                contains any object not otherwise permitted to 
                be carried in an aircraft cabin because of a 
                law or regulation of the United States; and
                  (G) the passenger wishing to carry the 
                instrument in the aircraft cabin has purchased 
                an additional seat to accommodate the 
                instrument.
          (3) Large instruments as checked baggage.--An air 
        carrier shall transport as baggage, without charge, a 
        musical instrument that is the property of a passenger 
        traveling in air transportation that may not be carried 
        in the aircraft cabin if--
                  (A) the sum of the length, width, and height 
                measured in inches of the outside linear 
                dimensions of the instrument (including the 
                case) does not exceed 150 inches; and
                  (B) the weight of the instrument does not 
                exceed 165 pounds.
  (b) Regulations.--The Secretary may prescribe such 
regulations as may be necessary or appropriate to implement 
subsection (a).

               SUBCHAPTER II--SMALL COMMUNITY AIR SERVICE

Sec. 41733. Level of basic essential air service

  (a) Decisions Made Before October 1, 1988.--For each eligible 
place for which a decision was made before October 1, 1988, 
under section 419 of the Federal Aviation Act of 1958, 
establishing the level of essential air transportation, the 
level of basic essential air service for that place shall be 
the level established by the Secretary of Transportation for 
that place by not later than December 29, 1988.
  (b) Decisions Not Made Before October 1, 1988.--(1) The 
Secretary shall decide on the level of basic essential air 
service for each eligible place for which a decision was not 
made before October 1, 1988, establishing the level of 
essential air transportation, when the Secretary receives 
notice that service to that place will be provided by only one 
air carrier. The Secretary shall make the decision by the last 
day of the 6-month period beginning on the date the Secretary 
receives the notice. The Secretary may impose notice 
requirements necessary to carry out this subsection. Before 
making a decision, the Secretary shall consider the views of 
any interested community and the appropriate State authority of 
the State in which the community is located.
  (2) Until the Secretary has made a decision on a level of 
basic essential air service for an eligible place under this 
subsection, the Secretary, on petition by an appropriate 
representative of the place, shall prohibit an air carrier from 
ending, suspending, or reducing air transportation to that 
place that appears to deprive the place of basic essential air 
service.
  (c) Availability of Compensation.--(1) If the Secretary 
decides that basic essential air service will not be provided 
to an eligible place without compensation, the Secretary shall 
provide notice that an air carrier may apply to provide basic 
essential air service to the place for compensation under this 
section. In selecting an applicant, the Secretary shall 
consider, among other factors--
          (A) the demonstrated reliability of the applicant in 
        providing scheduled air service;
          (B) the contractual and marketing arrangements the 
        applicant has made with a larger carrier to ensure 
        service beyond the hub airport;
          (C) the interline arrangements that the applicant has 
        made with a larger carrier to allow passengers and 
        cargo of the applicant at the hub airport to be 
        transported by the larger carrier through one 
        reservation, ticket, and baggage check-in;
          (D) the preferences of the actual and potential users 
        of air transportation at the eligible place, giving 
        substantial weight to the views of the elected 
        officials representing the users; and
          (E) for an eligible place in Alaska, the experience 
        of the applicant in providing, in Alaska, scheduled air 
        service, or significant patterns of non-scheduled air 
        service under an exemption granted under section 
        40109(a) and (c)-(h) of this title.
  (2) Under guidelines prescribed under section 41737(a) of 
this title, the Secretary shall pay the rate of compensation 
for providing basic essential air service under this section 
and section 41734 of this title.
  (d) Compensation Payments.--The Secretary shall pay 
compensation under this section at times and in the way the 
Secretary decides is appropriate. The Secretary shall end 
payment of compensation to an air carrier for providing basic 
essential air service to an eligible place when the Secretary 
decides the compensation is no longer necessary to maintain 
basic essential air service to the place.
  (e) Review.--The Secretary shall review periodically the 
level of basic essential air service for each eligible place. 
Based on the review and consultations with an interested 
community and the appropriate State authority of the State in 
which the community is located, the Secretary may make 
appropriate adjustments in the level of service, to the extent 
such adjustments are to a level not less than the basic 
essential air service level established under subsection (a) 
for the airport that serves the community.
  (f) Restoration of Eligibility for Subsidized Essential Air 
Service.--
          (1) In general.--If the Secretary of Transportation 
        terminates the eligibility of an otherwise eligible 
        place to receive basic essential air service by an air 
        carrier for compensation under subsection (c), a State 
        or local government may submit to the Secretary a 
        proposal for restoring such eligibility.
          (2) Determination by secretary.--If the per passenger 
        subsidy required by the proposal submitted by a State 
        or local government under paragraph (1) does not exceed 
        the per passenger subsidy cap provided under this 
        subchapter, the Secretary shall issue an order 
        restoring the eligibility of the otherwise eligible 
        place to receive basic essential air service by an air 
        carrier for compensation under subsection (c).

           *       *       *       *       *       *       *


Sec. 41737. Compensation guidelines, limitations, and claims

  (a) Compensation Guidelines.--(1) The Secretary of 
Transportation shall prescribe guidelines governing the rate of 
compensation payable under this subchapter. The guidelines 
shall be used to determine the reasonable amount of 
compensation required to ensure the continuation of air service 
or air transportation under this subchapter. The guidelines 
shall--
          (A) provide for a reduction in compensation when an 
        air carrier does not provide service or transportation 
        agreed to be provided;
          (B) consider amounts needed by an air carrier to 
        promote public use of the service or transportation for 
        which compensation is being paid; [and]
          (C) include expense elements based on representative 
        costs of air carriers providing scheduled air 
        transportation of passengers, property, and mail on 
        aircraft of the type the Secretary decides is 
        appropriate for providing the service or transportation 
        for which compensation is being [provided.] provided;
          (D) include provisions under which the Secretary may 
        encourage carriers to improve air service to small and 
        rural communities by incorporating financial incentives 
        in essential air service contracts based on specified 
        performance goals; and
          (E) include provisions under which the Secretary may 
        execute long-term essential air service contracts to 
        encourage carriers to provide air service to small and 
        rural communities where it would be in the public 
        interest to do so.
  (2) Promotional amounts described in paragraph (1)(B) of this 
subsection shall be a special, segregated element of the 
compensation provided to a carrier under this subchapter.
  (b) Required Finding.--The Secretary may pay compensation to 
an air carrier for providing air service or air transportation 
under this subchapter only if the Secretary finds the carrier 
is able to provide the service or transportation in a reliable 
way.
  (c) Claims.--Not later than 15 days after receiving a written 
claim from an air carrier for compensation under this 
subchapter, the Secretary shall--
          (1) pay or deny the United States Government's share 
        of a claim; and
          (2) if denying the claim, notify the carrier of the 
        denial and the reasons for the denial.
  (d) Authority To Make Agreements and Incur Obligations.--(1) 
The Secretary may make agreements and incur obligations from 
the Airport and Airway Trust Fund established under section 
9502 of the Internal Revenue Code of 1986 (26 U.S.C. 9502) to 
pay compensation under this subchapter. An agreement by the 
Secretary under this subsection is a contractual obligation of 
the Government to pay the Government's share of the 
compensation.
  (2) Not more than $38,600,000 is available to the Secretary 
out of the Fund for each of the fiscal years ending September 
30, 1993-1998, to incur obligations under this section. Amounts 
made available under this section remain available until 
expended.
  (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.
  (f) Fuel Cost Subsidy Disregard.--Any amount provided as an 
adjustment in compensation pursuant to subsection (a)(1)(D) 
shall be disregarded for the purpose of determining whether the 
amount of compensation provided under this subchapter with 
respect to an eligible place exceeds the per passenger subsidy 
exceeds the dollar amount allowable under this subchapter.

           *       *       *       *       *       *       *


Sec. 41742. Essential air service authorization

  (a) In General.--
          (1) Authorization.--Out of the amounts received by 
        the Federal Aviation Administration credited to the 
        account established under section 45303 of this title 
        or otherwise provided to the Administration, the sum of 
        $50,000,000 is authorized and shall be made available 
        immediately for obligation and expenditure to carry out 
        the essential air service program under this subchapter 
        for each fiscal year. Any amount in excess of 
        $50,000,000 credited for any fiscal year to the account 
        established under section 45303(c) shall be obligated 
        for programs under section 406 of the Vision 100--
        Century of Aviation Reauthorization Act (49 U.S.C. 
        40101 note) and section 41745 of this title. Amounts 
        appropriated pursuant to this section shall remain 
        available until expended.
          (2) Additional funds.--In addition to amounts 
        authorized under paragraph (1), there is authorized to 
        be appropriated [$77,000,000] $125,000,000 for each 
        fiscal year to carry out the essential air service 
        program under this subchapter 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.
          (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.
  (b) Funding for Small Community Air Service.--Notwithstanding 
any other provision of law, moneys credited to the account 
established under section 45303(a) of this title, including the 
funds derived from fees imposed under the authority contained 
in section 45301(a) of this title, shall be used to carry out 
the essential air service program under this subchapter. 
Notwithstanding section 47114(g) of this title, any amounts 
from those fees that are not obligated or expended at the end 
of the fiscal year for the purpose of funding the essential air 
service program under this subchapter shall be made available 
to the Administration for use in improving rural air safety 
under subchapter I of chapter 471 of this title and shall be 
used exclusively for projects at rural airports under this 
subchapter.

Sec. 41743. Airports not receiving sufficient service

  (a) Small Community Air Service Development Program.--The 
Secretary of Transportation shall establish a program that 
meets the requirements of this section for improving air 
carrier service to airports not receiving sufficient air 
carrier service.
  (b) Application Required.--In order to participate in the 
program established under subsection (a), a community or 
consortium of communities shall submit an application to the 
Secretary in such form, at such time, and containing such 
information as the Secretary may require, including--
          (1) an assessment of the need of the community or 
        consortium for access, or improved access, to the 
        national air transportation system; and
          (2) an analysis of the application of the criteria in 
        subsection (c) to that community or consortium.
  (c) Criteria for Participation.--In selecting communities, or 
consortia of communities, for participation in the program 
established under subsection (a), the Secretary shall apply the 
following criteria:
          (1) Size.--For calendar year 1997, the airport 
        serving the community or consortium was not larger than 
        a small hub airport, and--
                  (A) had insufficient air carrier service; or
                  (B) had unreasonably high air fares.
          (2) Characteristics.--The airport presents 
        characteristics, such as geographic diversity or unique 
        circumstances, that will demonstrate the need for, and 
        feasibility of, the program established under 
        subsection (a).
          (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.
          (4) Overall limit.--No more than 40 communities or 
        consortia of communities, or a combination thereof, may 
        be selected to participate in the program in each year 
        for which funds are appropriated for the program. 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.
          (5) Priorities.--The Secretary shall give priority to 
        communities or consortia of communities where--
                  (A) air fares are higher than the average air 
                fares for all communities;
                  (B) the community or consortium will provide 
                a portion of the cost of the activity to be 
                assisted under the program from local sources 
                other than airport revenues;
                  (C) the community or consortium has 
                established, or will establish, a public-
                private partnership to facilitate air carrier 
                service to the public;
                  (D) the assistance will provide material 
                benefits to a broad segment of the travelling 
                public, including business, educational 
                institutions, and other enterprises, whose 
                access to the national air transportation 
                system is limited; [and]
                  (E) the assistance will be used in a timely 
                [fashion.] fashion; and
                  (F) multiple communities cooperate to submit 
                a region or multistate application to improve 
                air service.
  (d) Types of Assistance.--The Secretary may use amounts made 
available under this section--
          (1) to provide assistance to an air carrier to 
        subsidize service to and from an underserved airport 
        for a period not to exceed 3 years;
          (2) to provide assistance to an underserved airport 
        to obtain service to and from the underserved airport; 
        and
          (3) to provide assistance to an underserved airport 
        to implement such other measures as the Secretary, in 
        consultation with such airport, considers appropriate 
        to improve air service both in terms of the cost of 
        such service to consumers and the availability of such 
        service, including improving air service through 
        marketing and promotion of air service and enhanced 
        utilization of airport facilities.
  (e) Authority To Make Agreements.--
          (1) In general.--The Secretary may make agreements to 
        provide assistance under this section.
          (2) Authorization of appropriations.--There is 
        authorized to be appropriated to the Secretary 
        $20,000,000 for fiscal year 2001, $27,500,000 for each 
        of fiscal years 2002 and 2003, and $35,000,000 for each 
        of fiscal years 2004 through [2009] 2011 to carry out 
        this section. Such sums shall remain available until 
        expended.
  (f) Additional Action.--Under the program established under 
subsection (a), the Secretary shall work with air carriers 
providing service to participating communities and major air 
carriers (as defined in section 41716(a)(2)) serving large hub 
airports to facilitate joint-fare arrangements consistent with 
normal industry practice.
  (g) Designation of Responsible Official.--The Secretary shall 
designate an employee of the Department of Transportation--
          (1) to function as a facilitator between small 
        communities and air carriers;
          (2) to carry out this section;
          (3) to ensure that the Bureau of Transportation 
        Statistics collects data on passenger information to 
        assess the service needs of small communities;
          (4) to work with and coordinate efforts with other 
        Federal, State, and local agencies to increase the 
        viability of service to small communities and the 
        creation of aviation development zones; and
          (5) to provide policy recommendations to the 
        Secretary and Congress that will ensure that small 
        communities have access to quality, affordable air 
        transportation services.
  (h) Air Service Development Zone.--The Secretary shall 
designate an airport in the program as an Air Service 
Development Zone and work with the community or consortium on 
means to attract business to the area surrounding the airport, 
to develop land use options for the area, and provide data, 
working with the Department of Commerce and other agencies.

           *       *       *       *       *       *       *


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) Conversion of Lost Eligibility Airports.--
          (1) In general.--The Secretary shall establish a 
        program to provide general aviation conversion funding 
        for airports serving eligible places that the Secretary 
        has determined no longer qualify for a subsidy.
          (2) Grants.--A grant under this subsection--
                  (A) may not exceed twice the compensation 
                paid to provide essential air service to the 
                airport in the fiscal year preceding the fiscal 
                year in which the Secretary determines that the 
                place served by the airport is no longer an 
                eligible place; and
                  (B) may be used--
                          (i) for airport development (as 
                        defined in section 47102(3)) that will 
                        enhance general aviation capacity at 
                        the airport;
                          (ii) to defray operating expenses, if 
                        such use is approved by the Secretary; 
                        or
                          (iii) to develop innovative air 
                        service options, such as on-demand or 
                        air taxi operations, if such use is 
                        approved by the Secretary.
          (3) AIP requirements.--An airport sponsor that uses 
        funds provided under this subsection for an airport 
        development project shall comply with the requirements 
        of subchapter I of chapter 471 applicable to airport 
        development projects funded under that subchapter with 
        respect to the project funded under this subsection.
          (4) Limitation.--The sponsor of an airport receiving 
        funding under this subsection is not eligible for 
        funding under section 41736.
  [(c)] (d) 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)] (e) 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)] (f) Participation Requirements.--[An eligible place] 
Neither an eligible place, nor a place to which subsection (c) 
applies 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)] (g) 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)] (h) Funding.--Amounts appropriated or otherwise made 
available to carry out the essential air service program under 
this subchapter shall be available to carry out this section.

           *       *       *       *       *       *       *


41749. Essential air service for eligible places above per passenger 
                    subsidy cap

  (a) Proposals.--A State or local government may submit a 
proposal to the Secretary of Transportation for compensation 
for an air carrier to provide air transportation to a place 
described in subsection (b).
  (b) Place Described.--A place described in this subsection is 
a place--
          (1) that is otherwise an eligible place; and
          (2) for which the per passenger subsidy exceeds the 
        dollar amount allowable under this subchapter.
  (c) Decisions.--Not later than 90 days after receiving a 
proposal under subsection (a) for compensation for an air 
carrier to provide air transportation to a place described in 
subsection (b), the Secretary shall--
          (1) decide whether to provide compensation for the 
        air carrier to provide air transportation to the place; 
        and
          (2) approve the proposal if the State or local 
        government or a person is willing and able to pay the 
        difference between--
                  (A) the per passenger subsidy; and
                  (B) the dollar amount allowable for such 
                subsidy under this subchapter.
  (d) Compensation Payments.--
          (1) In general.--The Secretary shall pay compensation 
        under this section at such time and in such manner as 
        the Secretary determines is appropriate.
          (2) Duration of payments.--The Secretary shall 
        continue to pay compensation under this section only as 
        long as--
                  (A) the State or local government or person 
                agreeing to pay compensation under subsection 
                (c)(2) continues to pay such compensation; and
                  (B) the Secretary decides the compensation is 
                necessary to maintain air transportation to the 
                place.
  (e) Review.--
          (1) In general.--The Secretary shall periodically 
        review the type and level of air service provided under 
        this section.
          (2) Consultation.--The Secretary may make appropriate 
        adjustments in the type and level of air service to a 
        place under this section based on the review under 
        paragraph (1) and consultation with the affected 
        community and the State or local government or person 
        agreeing to pay compensation under subsection (c)(2).
  (f) Ending, Suspending, and Reducing Air Transportation.--An 
air carrier providing air transportation to a place under this 
section may end, suspend, or reduce such air transportation if, 
not later than 30 days before ending, suspending, or reducing 
such air transportation, the air carrier provides notice of the 
intent of the air carrier to end, suspend, or reduce such air 
transportation to--
          (1) the Secretary;
          (2) the affected community; and
          (3) the State or local government or person agreeing 
        to pay compensation under subsection (c)(2).

41750. Preferred essential air service

  (a) Proposals.--A State or local government may submit a 
proposal to the Secretary of Transportation for compensation 
for a preferred air carrier described in subsection (b) to 
provide air transportation to an eligible place.
  (b) Preferred Air Carrier Described.--A preferred air carrier 
described in this subsection is an air carrier that--
          (1) submits an application under section 41733(c) to 
        provide air transportation to an eligible place;
          (2) is not the air carrier that submits the lowest 
        cost bid to provide air transportation to the eligible 
        place; and
          (3) is an air carrier that the affected community 
        prefers to provide air transportation to the eligible 
        place instead of the air carrier that submits the 
        lowest cost bid.
  (c) Decisions.--Not later than 90 days after receiving a 
proposal under subsection (a) for compensation for a preferred 
air carrier described in subsection (b) to provide air 
transportation to an eligible place, the Secretary shall--
          (1) decide whether to provide compensation for the 
        preferred air carrier to provide air transportation to 
        the eligible place; and
          (2) approve the proposal if the State or local 
        government or a person is willing and able to pay the 
        difference between--
                  (A) the rate of compensation the Secretary 
                would provide to the air carrier that submits 
                the lowest cost bid to provide air 
                transportation to the eligible place; and
                  (B) the rate of compensation the preferred 
                air carrier estimates to be necessary to 
                provide air transportation to the eligible 
                place.
  (d) Compensation Payments.--
          (1) In general.--The Secretary shall pay compensation 
        under this section at such time and in such manner as 
        the Secretary determines is appropriate.
          (2) Duration of payments.--The Secretary shall 
        continue to pay compensation under this section only as 
        long as--
                  (A) the State or local government or person 
                agreeing to pay compensation under subsection 
                (c)(2) continues to pay such compensation; and
                  (B) the Secretary decides the compensation is 
                necessary to maintain air transportation to the 
                eligible place.
  (e) Review.--
          (1) In general.--The Secretary shall periodically 
        review the type and level of air service provided under 
        this section.
          (2) Consultation.--The Secretary may make appropriate 
        adjustments in the type and level of air service to an 
        eligible place under this section based on the review 
        under paragraph (1) and consultation with the affected 
        community and the State or local government or person 
        agreeing to pay compensation under subsection (c)(2).
  (f) Ending, Suspending, and Reducing Air Transportation.--A 
preferred air carrier providing air transportation to an 
eligible place under this section may end, suspend, or reduce 
such air transportation if, not later than 30 days before 
ending, suspending, or reducing such air transportation, the 
preferred air carrier provides notice of the intent of the 
preferred air carrier to end, suspend, or reduce such air 
transportation to--
          (1) the Secretary;
          (2) the affected community; and
          (3) the State or local government or person agreeing 
        to pay compensation under subsection (c)(2).

           *       *       *       *       *       *       *


                SUBCHAPTER IV--AIRLINE CUSTOMER SERVICE

Sec. 41781. Air carrier and airport contingency plans for long on-board 
                    tarmac delays

  (a) Definition of Tarmac Delay.--The term ``tarmac delay'' 
means the holding of an aircraft on the ground before taking 
off or after landing with no opportunity for its passengers to 
deplane.
  (b) Submission of Air Carrier and Airport Plans.--Not later 
than 60 days after the date of the enactment of the FAA Air 
Transportation Modernization and Safety Improvement Act, each 
air carrier and airport operator shall submit, in accordance 
with the requirements under this section, a proposed 
contingency plan to the Secretary of Transportation for review 
and approval.
  (c) Minimum Standards.--The Secretary of Transportation shall 
establish minimum standards for elements in contingency plans 
required to be submitted under this section to ensure that such 
plans effectively address long on-board tarmac delays and 
provide for the health and safety of passengers and crew.
  (d) Air Carrier Plans.--The plan shall require each air 
carrier to implement at a minimum the following:
          (1) Provision of essential services.--Each air 
        carrier shall provide for the essential needs of 
        passengers on board an aircraft at an airport in any 
        case in which the departure of a flight is delayed or 
        disembarkation of passengers on an arriving flight that 
        has landed is substantially delayed, including--
                  (A) adequate food and potable water;
                  (B) adequate restroom facilities;
                  (C) cabin ventilation and comfortable cabin 
                temperatures; and
                  (D) access to necessary medical treatment.
          (2) Right to deplane.--
                  (A) In general.--Each air carrier shall 
                submit a proposed contingency plan to the 
                Secretary of Transportation that identifies a 
                clear time frame under which passengers would 
                be permitted to deplane a delayed aircraft. 
                After the Secretary has reviewed and approved 
                the proposed plan, the air carrier shall make 
                the plan available to the public.
                  (B) Delays.--
                          (i) In general.--As part of the plan, 
                        except as provided under clause (iii), 
                        an air carrier shall provide passengers 
                        with the option of deplaning and 
                        returning to the terminal at which such 
                        deplaning could be safely completed, or 
                        deplaning at the terminal if--
                                  (I) 3 hours have elapsed 
                                after passengers have boarded 
                                the aircraft, the aircraft 
                                doors are closed, and the 
                                aircraft has not departed; or
                                  (II) 3 hours have elapsed 
                                after the aircraft has landed 
                                and the passengers on the 
                                aircraft have been unable to 
                                deplane.
                          (ii) Frequency.--The option described 
                        in clause (i) shall be offered to 
                        passengers at a minimum not less often 
                        than once during each successive 3-hour 
                        period that the plane remains on the 
                        ground.
                          (iii) Exceptions.--This subparagraph 
                        shall not apply if--
                                  (I) the pilot of such 
                                aircraft reasonably determines 
                                that the aircraft will depart 
                                or be unloaded at the terminal 
                                not later than 30 minutes after 
                                the 3 hour delay; or
                                  (II) the pilot of such 
                                aircraft reasonably determines 
                                that permitting a passenger to 
                                deplane would jeopardize 
                                passenger safety or security.
                  (C) Application to diverted flights.--This 
                section applies to aircraft without regard to 
                whether they have been diverted to an airport 
                other than the original destination.
                  (D) Reports.--Not later than 30 days after 
                any flight experiences a tarmac delay lasting 
                at least 3 hours, the air carrier responsible 
                for such flight shall submit a written 
                description of the incident and its resolution 
                to the Aviation Consumer Protection Office of 
                the Department of Transportation.
  (e) Airport Plans.--Each airport operator shall submit a 
proposed contingency plan under subsection (b) that contains a 
description of--
          (1) how the airport operator will provide for the 
        deplanement of passengers following a long tarmac 
        delay; and
          (2) how, to the maximum extent practicable, the 
        airport operator will provide for the sharing of 
        facilities and make gates available at the airport for 
        use by aircraft experiencing such delays.
  (f) Updates.--The Secretary shall require periodic reviews 
and updates of the plans as necessary.
  (g) Approval.--
          (1) In general.--Not later than 6 months after the 
        date of the enactment of the FAA Air Transportation 
        Modernization and Safety Improvement Act, the Secretary 
        of Transportation shall--
                  (A) review the initial contingency plans 
                submitted under subsection (b); and
                  (B) approve plans that closely adhere to the 
                standards described in subsections (d) or (e), 
                whichever is applicable.
          (2) Updates.--Not later than 60 days after the 
        submission of an update under subsection (f) or an 
        initial contingency plan by a new air carrier or 
        airport, the Secretary shall--
                  (A) review the plan; and
                  (B) approve the plan if it closely adheres to 
                the standards described in subsections (d) or 
                (e), whichever is applicable.
  (h) Civil Penalties.--The Secretary may assess a civil 
penalty under section 46301 against any air carrier or airport 
operator that does not submit, obtain approval of, or adhere to 
a contingency plan submitted under this section.
  (i) Public Access.--Each air carrier and airport operator 
required to submit a contingency plan under this section shall 
ensure public access to an approved plan under this section 
by--
          (1) including the plan on the Internet Web site of 
        the carrier or airport; or
          (2) disseminating the plan by other means, as 
        determined by the Secretary.

Sec. 41782. Air passenger complaints hotline and information

  (a) Air Passenger Complaints Hotline Telephone Number.--The 
Secretary of Transportation shall establish a consumer 
complaints hotline telephone number for the use of air 
passengers.
  (b) Public Notice.--The Secretary shall notify the public of 
the telephone number established under subsection (a).
  (c) Authorization of Appropriations.--There are authorized to 
be appropriated such sums as may be necessary to carry out this 
section, which sums shall remain available until expended.

                         CHAPTER 443. INSURANCE

Sec. 44302. General authority

  (a) Insurance and Reinsurance.--(1) Subject to subsection (c) 
of this section and section 44305(a) of this title, the 
Secretary of Transportation may provide insurance and 
reinsurance against loss or damage arising out of any risk from 
the operation of an American aircraft or foreign-flag aircraft.
  (2) An aircraft may be insured or reinsured for not more than 
its reasonable value as determined by the Secretary in 
accordance with reasonable business practices in the commercial 
aviation insurance industry. Insurance or reinsurance may be 
provided only when the Secretary decides that the insurance 
cannot be obtained on reasonable terms from an insurance 
carrier.
  (b) Reimbursement of Insurance Cost Increases.--
          (1) In general.--The Secretary may reimburse an air 
        carrier for the increase in the cost of insurance, with 
        respect to a premium for coverage ending before October 
        1, 2002, against loss or damage arising out of any risk 
        from the operation of an American aircraft over the 
        insurance premium that was in effect for a comparable 
        operation during the period beginning September 4, 
        2001, and ending September 10, 2001, as the Secretary 
        may determine. Such reimbursement is subject to 
        subsections (a)(2), (c), and (d) of this section and to 
        section 44303.
          (2) Payment from revolving fund.--A reimbursement 
        under this subsection shall be paid from the revolving 
        fund established by section 44307.
          (3) Further conditions.--The Secretary may impose 
        such further conditions on insurance for which the 
        increase in premium is subject to reimbursement under 
        this subsection as the Secretary may deem appropriate 
        in the interest of air commerce.
          (4) Termination of authority.--The authority to 
        reimburse air carriers under this subsection shall 
        expire 180 days after the date of enactment of this 
        paragraph.
  (c) Presidential Approval.--The Secretary may provide 
insurance or reinsurance under subsection (a) of this section, 
or reimburse an air carrier under subsection (b) of this 
section, only with the approval of the President. The President 
may approve the insurance or reinsurance or the reimbursement 
only after deciding that the continued operation of the 
American aircraft or foreign-flag aircraft to be insured or 
reinsured is necessary in the interest of air commerce or 
national security or to carry out the foreign policy of the 
United States Government.
  (d) Consultation.--The President may require the Secretary to 
consult with interested departments, agencies, and 
instrumentalities of the Government before providing insurance 
or reinsurance or reimbursing an air carrier under this 
chapter.
  (e) Additional Insurance.--With the approval of the 
Secretary, a person having an insurable interest in an aircraft 
may insure with other underwriters in an amount that is more 
than the amount insured with the Secretary. However, the 
Secretary may not benefit from the additional insurance. This 
subsection does not prevent the Secretary from making contracts 
of coinsurance.
  (f) Extension of Policies.--
          (1) In general.--The Secretary shall extend through 
        [September 30, 2009,] September 30, 2011, and may 
        extend through [December 31, 2009,] December 31, 2011, 
        the termination date of any insurance policy that the 
        Department of Transportation issued to an air carrier 
        under subsection (a) and that is in effect on the date 
        of enactment of this subsection on no less favorable 
        terms to the air carrier than existed on June 19, 2002; 
        except that the Secretary shall amend the insurance 
        policy, subject to such terms and conditions as the 
        Secretary may prescribe, to add coverage for losses or 
        injuries to aircraft hulls, passengers, and crew at the 
        limits carried by air carriers for such losses and 
        injuries as of such date of enactment and at an 
        additional premium comparable to the premium charged 
        for third-party casualty coverage under such policy.
          (2) Special rules.--Notwithstanding paragraph (1)--
                  (A) in no event shall the total premium paid 
                by the air carrier for the policy, as amended, 
                be more than twice the premium that the air 
                carrier was paying to the Department of 
                Transportation for its third party policy as of 
                June 19, 2002; and
                  (B) the coverage in such policy shall begin 
                with the first dollar of any covered loss that 
                is incurred.
  (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.

Sec. 44303. Coverage

  (a) In General.--The Secretary of Transportation may provide 
insurance and reinsurance, or reimburse insurance costs, as 
authorized under section 44302 of this title for the following:
          (1) an American aircraft or foreign-flag aircraft 
        engaged in aircraft operations the President decides 
        are necessary in the interest of air commerce or 
        national security or to carry out the foreign policy of 
        the United States Government.
          (2) property transported or to be transported on 
        aircraft referred to in clause (1) of this section, 
        including--
                  (A) shipments by express or registered mail;
                  (B) property owned by citizens or residents 
                of the United States;
                  (C) property--
                          (i) imported to, or exported from, 
                        the United States; and
                          (ii) bought or sold by a citizen or 
                        resident of the United States under a 
                        contract putting the risk of loss or 
                        obligation to provide insurance against 
                        risk of loss on the citizen or 
                        resident; and
                  (D) property transported between--
                          (i) a place in a State or the 
                        District of Columbia and a place in a 
                        territory or possession of the United 
                        States;
                          (ii) a place in a territory or 
                        possession of the United States and a 
                        place in another territory or 
                        possession of the United States; or
                          (iii) 2 places in the same territory 
                        or possession of the United States.
          (3) the personal effects and baggage of officers and 
        members of the crew of an aircraft referred to in 
        clause (1) of this section and of other individuals 
        employed or transported on that aircraft.
          (4) officers and members of the crew of an aircraft 
        referred to in clause (1) of this section and other 
        individuals employed or transported on that aircraft 
        against loss of life, injury, or detention.
          (5) statutory or contractual obligations or other 
        liabilities, customarily covered by insurance, of an 
        aircraft referred to in clause (1) of this section or 
        of the owner or operator of that aircraft.
          (6) loss or damage of an aircraft manufacturer 
        resulting from operation of an aircraft by an air 
        carrier and involving war or terrorism.
  (b) Air Carrier Liability for Third Party Claims Arising Out 
of Acts of Terrorism.--For acts of terrorism committed on or to 
an air carrier during the period beginning on September 22, 
2001, and ending on [December 31, 2009,] December 31, 2012, the 
Secretary may certify that the air carrier was a victim of an 
act of terrorism and in the Secretary's judgment, based on the 
Secretary's analysis and conclusions regarding the facts and 
circumstances of each case, shall not be responsible for losses 
suffered by third parties (as referred to in section 
205.5(b)(1) of title 14, Code of Federal Regulations) that 
exceed $100,000,000, in the aggregate, for all claims by such 
parties arising out of such act. If the Secretary so certifies, 
the air carrier shall not be liable for an amount that exceeds 
$100,000,000, in the aggregate, for all claims by such parties 
arising out of such act, and the Government shall be 
responsible for any liability above such amount. No punitive 
damages may be awarded against an air carrier (or the 
Government taking responsibility for an air carrier under this 
subsection) under a cause of action arising out of such act. 
The Secretary may extend the provisions of this subsection to 
an aircraft manufacturer (as defined in section 44301) of the 
aircraft of the air carrier involved.

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44310. Ending effective date

  The authority of the Secretary of Transportation to provide 
insurance and reinsurance under this chapter is not effective 
after [December 31, 2013.] October 1, 2017.

            CHAPTER 445. FACILITIES, PERSONNEL, AND RESEARCH

Sec. 44501. Plans and policy

  (a) Long Range Plans and Policy Requirements.--The 
Administrator of the Federal Aviation Administration shall make 
long range plans and policy for the orderly development and use 
of the navigable airspace, and the orderly development and 
location of air navigation facilities, that will best meet the 
needs of, and serve the interests of, civil aeronautics and the 
national defense, except for needs of the armed forces that are 
peculiar to air warfare and primarily of military concern.
  (b) Airway Capital Investment Plan.--The Administrator of the 
Federal Aviation Administration shall review, revise, and 
publish a national airways system plan, known as the Airway 
Capital Investment Plan, before the beginning of each fiscal 
year. The plan shall set forth--
          (1) for a 10-year period, the research, engineering, 
        and development programs and the facilities and 
        equipment that the Administrator considers necessary 
        for a system of airways, air traffic services, and 
        navigation aids that will--
                  (A) meet the forecasted needs of civil 
                aeronautics;
                  (B) meet the requirements that the Secretary 
                of Defense establishes for the support of the 
                national defense; and
                  (C) provide the highest degree of safety in 
                air commerce;
          (2) for the first and 2d years of the plan, detailed 
        annual estimates of--
                  (A) the number, type, location, and cost of 
                acquiring, operating, and maintaining required 
                facilities and services;
                  (B) the cost of research, engineering, and 
                development required to improve safety, system 
                capacity, and efficiency; and
                  (C) personnel levels required for the 
                activities described in subclauses (A) and (B) 
                of this clause;
          (3) for the 3d, 4th, and 5th years of the plan, 
        estimates of the total cost of each major program for 
        the 3-year period, and additional major research 
        programs, acquisition of systems and facilities, and 
        changes in personnel levels that may be required to 
        meet long range objectives and that may have 
        significant impact on future funding requirements; 
        [and]
          (4) a 10-year investment plan that considers long 
        range objectives that the Administrator considers 
        necessary to--
                  (A) ensure that safety is given the highest 
                priority in providing for a safe and efficient 
                airway system; and
                  (B) meet the current and projected growth of 
                aviation and the requirements of interstate 
                commerce, the United States Postal Service, and 
                the national [defense.] defense; and
          (5) a list of projects that are part of the Next 
        Generation Air Transportation System and do not have as 
        a primary purpose to operate or maintain the current 
        air traffic control system.
  (c) National Aviation Research Plan.--(1) The Administrator 
of the Federal Aviation Administration shall prepare and 
publish annually a national aviation research plan and submit 
the plan to the Committee on Commerce, Science, and 
Transportation of the Senate and the Committee on Science of 
the House of Representatives. The plan shall be submitted not 
later than the date of submission of the President's budget to 
Congress.
  (2)(A) The plan shall describe, for a 5-year period, the 
research, engineering, and development that the Administrator 
of the Federal Aviation Administration considers necessary--
          (i) to ensure the continued capacity, safety, and 
        efficiency of aviation in the United States, 
        considering emerging technologies and forecasted needs 
        of civil aeronautics; and
          (ii) to provide the highest degree of safety in air 
        travel.
  (B) The plan shall--
          (i) provide estimates by year of the schedule, cost, 
        and work force levels for each active and planned major 
        research and development project under sections 40119, 
        44504, 44505, 44507, 44509, 44511-44513, and 44912 of 
        this title, including activities carried out under 
        cooperative agreements with other Federal departments 
        and agencies;
          (ii) specify the goals and the priorities for 
        allocation of resources among the major categories of 
        research and development activities, including the 
        rationale for the priorities identified;
          (iii) identify the allocation of resources among 
        long-term research, near-term research, and development 
        activities;
          (iv) identify the individual research and development 
        projects in each funding category that are described in 
        the annual budget request;
          (v) highlight the research and development activities 
        that address specific recommendations of the research 
        advisory committee established under section 44508 of 
        this title, and document the recommendations of the 
        committee that are not accepted, specifying the reasons 
        for nonacceptance; and
          (vi) highlight the research and development 
        technology transfer activities that promote technology 
        sharing among government, industry, and academia 
        through the Stevenson-Wydler Technology Innovation Act 
        of 1980.
  (3) Subject to section 40119(b) of this title and regulations 
prescribed under section 40119(b), the Administrator of the 
Federal Aviation Administration shall submit to the committees 
named in paragraph (1) of this subsection an annual report on 
the accomplishments of the research completed during the prior 
fiscal year, including a description of the dissemination to 
the private sector of research results and a description of any 
new technologies developed. The report shall be submitted with 
the plan required under paragraph (1) and be organized to allow 
comparison with the plan in effect for the prior fiscal year. 
The report shall be prepared in accordance with requirements of 
section 1116 of title 31.

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Sec. 44504. Improved aircraft, aircraft engines, propellers, and 
                    appliances

  (a) Developmental Work and Service Testing.--The 
Administrator of the Federal Aviation Administration may 
conduct or supervise developmental work and service testing to 
improve unmanned and manned aircraft, aircraft engines, 
propellers, and appliances.
  (b) Research.--The Administrator shall conduct or supervise 
research--
          (1) to develop technologies and analyze information 
        to predict the effects of aircraft design, maintenance, 
        testing, wear, and fatigue on the life of aircraft, 
        including nonstructural aircraft systems, and air 
        safety;
          (2) to develop methods of analyzing and improving 
        aircraft maintenance technology and practices, 
        including nondestructive evaluation of aircraft 
        structures;
          (3) to assess the fire and smoke resistance of 
        aircraft material;
          (4) to develop improved fire and smoke resistant 
        material for aircraft interiors;
          (5) to develop and improve fire and smoke containment 
        systems for inflight aircraft fires;
          (6) to develop advanced aircraft fuels with low 
        flammability and technologies that will contain 
        aircraft fuels to minimize post-crash fire hazards; 
        [and]
          (7) to develop technologies and methods to assess the 
        risk of and prevent defects, failures, and malfunctions 
        of products, parts, processes, and articles 
        manufactured for use in aircraft, aircraft engines, 
        propellers, and appliances that could result in a 
        catastrophic failure of an [aircraft.] aircraft;
          (8) to conduct research to support programs designed 
        to reduce gases and particulates [emitted.) emitted; 
        and
          (9) in conjunction with other Federal agencies as 
        appropriate, to develop technologies and methods to 
        assess the risk of and prevent defects, failures, and 
        malfunctions of products, parts, and processes, for use 
        in all classes of unmanned aircraft systems that could 
        result in a catastrophic failure.
  (c) Authority To Buy Items Offering Special Advantages.--In 
carrying out this section, the Administrator, by negotiation or 
otherwise, may buy or exchange experimental aircraft, aircraft 
engines, propellers, and appliances that the Administrator 
decides may offer special advantages to aeronautics.

Sec. 44505. Systems, procedures, facilities, and devices

  (a) General Requirements.--(1) The Administrator of the 
Federal Aviation Administration shall--
          (A) develop, alter, test, and evaluate systems, 
        procedures, facilities, and devices, and define their 
        performance characteristics, to meet the needs for safe 
        and efficient navigation and traffic control of civil 
        and military aviation, except for needs of the armed 
        forces that are peculiar to air warfare and primarily 
        of military concern; and
          (B) select systems, procedures, facilities, and 
        devices that will best serve those needs and promote 
        maximum coordination of air traffic control and air 
        defense systems.
  (2) The Administrator may make contracts to carry out this 
subsection without regard to section 3324(a) and (b) of title 
31.
  (3) When a substantial question exists under paragraph (1) of 
this subsection about whether a matter is of primary concern to 
the armed forces, the Administrator shall decide whether the 
Administrator or the Secretary of the appropriate military 
department has responsibility. The Administrator shall be given 
technical information related to each research and development 
project of the armed forces that potentially applies to, or 
potentially conflicts with, the common system to ensure that 
potential application to the common system is considered 
properly and that potential conflicts with the system are 
eliminated.
  (b) Research on Human Factors and Simulation Models.--The 
Administrator shall conduct or supervise research--
          (1) to develop a better understanding of the 
        relationship between human factors and aviation 
        accidents and between human factors and air safety;
          (2) to enhance air traffic controller, mechanic, and 
        flight crew performance;
          (3) to develop a human-factor analysis of the hazards 
        associated with new technologies to be used by air 
        traffic controllers, mechanics, and flight crews;
          (4) to identify innovative and effective corrective 
        measures for human errors that adversely affect air 
        safety; [and]
          (5) to develop dynamic simulation models of the air 
        traffic control system and airport design and operating 
        procedures that will provide analytical technology--
                  (A) to predict airport and air traffic 
                control safety and capacity problems;
                  (B) to evaluate planned research projects; 
                and
                  (C) to test proposed revisions in airport and 
                air traffic control operations [programs.] 
                programs; and
          (6) to develop a better understanding of the 
        relationship between human factors and unmanned 
        aircraft systems air safety; and
          (7) to develop dynamic simulation models of 
        integrating all classes of unmanned aircraft systems 
        into the National Airspace System.
  (c) Research on Developing and Maintaining a Safe and 
Efficient System.--The Administrator shall conduct or supervise 
research on--
          (1) airspace and airport planning and design;
          (2) airport capacity enhancement techniques;
          (3) human performance in the air transportation 
        environment;
          (4) aviation safety and security;
          (5) the supply of trained air transportation 
        personnel, including pilots and mechanics; and
          (6) other aviation issues related to developing and 
        maintaining a safe and efficient air transportation 
        system.
  (d) Cooperative Agreements.--The Administrator may enter into 
cooperative agreements on a cost-shared basis with Federal and 
non-Federal entities that the Administrator may select in order 
to conduct, encourage, and promote aviation research, 
engineering, and development, including the development of 
prototypes and demonstration models.

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Sec. 44511. Aviation research grants

  (a) General Authority.--The Administrator of the Federal 
Aviation Administration may make grants to institutions of 
higher education and nonprofit research organizations to 
conduct aviation research in areas the Administrator considers 
necessary for the long-term growth of civil aviation.
  (b) Applications.--An institution of higher education or 
nonprofit research organization interested in receiving a grant 
under this section may submit an application to the 
Administrator. The application must be in the form and contain 
the information the Administrator requires.
  (c) Solicitation, Review, and Evaluation Process.--The 
Administrator shall establish a solicitation, review, and 
evaluation process that ensures--
          (1) providing grants under this section for proposals 
        having adequate merit and relevancy to the mission of 
        the Administration;
          (2) a fair geographical distribution of grants under 
        this section; and
          (3) the inclusion of historically black institutions 
        of higher education and other minority nonprofit 
        research organizations for grant consideration under 
        this section.
  (d) Records.--Each person receiving a grant under this 
section shall maintain records that the Administrator requires 
as being necessary to facilitate an effective audit and 
evaluation of the use of money provided under the grant.
  (e) Annual Report.--The Administrator shall submit an annual 
report to the Committee on Science of the House of 
Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate on carrying out this section.
  (f) Airport Cooperative Research Program.--
          (1) Establishment.--The Secretary of Transportation 
        shall [establish a 4-year pilot] maintain an airport 
        cooperative research program to--
                  (A) identify problems that are shared by 
                airport operating agencies and can be solved 
                through applied research but that are not being 
                adequately addressed by existing Federal 
                research programs; and
                  (B) fund research to address those problems.
          (2) Governance.--The Secretary of Transportation 
        shall appoint an independent governing board for the 
        research program established under this subsection. The 
        governing board shall be appointed from candidates 
        nominated by national associations representing public 
        airport operating agencies, airport executives, State 
        aviation officials, and the scheduled airlines, and 
        shall include representatives of appropriate Federal 
        agencies. Section 14 of the Federal Advisory Committee 
        Act shall not apply to the governing board.
          (3) Implementation.--The Secretary of Transportation 
        shall enter into an arrangement with the National 
        Academy of Sciences to provide staff support to the 
        governing board established under paragraph (2) and to 
        carry out projects proposed by the governing board that 
        the Secretary considers appropriate.
          (4) Report.--Not later than 6 months after the 
        expiration of the pilot 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.] program.

                     CHAPTER 447. SAFETY REGULATION

Sec. 44703. Airman certificates

  (a) General.--The Administrator of the Federal Aviation 
Administration shall issue an airman certificate to an 
individual when the Administrator finds, after investigation, 
that the individual is qualified for, and physically able to 
perform the duties related to, the position to be authorized by 
the certificate.
  (b) Contents.--(1) An airman certificate shall--
          (A) be numbered and recorded by the Administrator of 
        the Federal Aviation Administration;
          (B) contain the name, address, and description of the 
        individual to whom the certificate is issued;
          (C) contain terms the Administrator decides are 
        necessary to ensure safety in air commerce, including 
        terms on the duration of the certificate, periodic or 
        special examinations, and tests of physical fitness;
          (D) specify the capacity in which the holder of the 
        certificate may serve as an airman with respect to an 
        aircraft; and
          (E) designate the class the certificate covers.
  (2) A certificate issued to a pilot serving in scheduled air 
transportation shall have the designation ``airline transport 
pilot'' of the appropriate class.
  (c) Public Information.--
          (1) In general.--Subject to paragraph (2) and 
        notwithstanding any other provision of law, the 
        information contained in the records of contents of any 
        airman certificate issued under this section that is 
        limited to an airman's name, address, and ratings held 
        shall be made available to the public after the 120th 
        day following the date of the enactment of the Wendell 
        H. Ford Aviation Investment and Reform Act for the 21st 
        Century.
          (2) Opportunity to withhold information.--Before 
        making any information concerning an airman available 
        to the public under paragraph (1), the airman shall be 
        given an opportunity to elect that the information not 
        be made available to the public.
          (3) Development and implementation of program.--Not 
        later than 60 days after the date of the enactment of 
        the Wendell H. Ford Aviation Investment and Reform Act 
        for the 21st Century, the Administrator shall develop 
        and implement, in cooperation with representatives of 
        the aviation industry, a one-time written notification 
        to airmen to set forth the implications of making 
        information concerning an airman available to the 
        public under paragraph (1) and to carry out paragraph 
        (2). The Administrator shall also provide such written 
        notification to each individual who becomes an airman 
        after such date of enactment.
  (d) Appeals.--(1) An individual whose application for the 
issuance or renewal of an airman certificate has been denied 
may appeal the denial to the National Transportation Safety 
Board, except if the individual holds a certificate that--
          (A) is suspended at the time of denial; or
          (B) was revoked within one year from the date of the 
        denial.
  (2) The Board shall conduct a hearing on the appeal at a 
place convenient to the place of residence or employment of the 
applicant. The Board is not bound by findings of fact of the 
Administrator of the Federal Aviation Administration but is 
bound by all validly adopted interpretations of laws and 
regulations the Administrator carries out unless the Board 
finds an interpretation is arbitrary, capricious, or otherwise 
not according to law. At the end of the hearing, the Board 
shall decide whether the individual meets the applicable 
regulations and standards. The Administrator is bound by that 
decision.
  (3) Judicial review.--A person substantially affected by an 
order of the Board under this subsection, or the Administrator 
when the Administrator decides that an order of the Board will 
have a significant adverse impact on carrying out this part, 
may obtain judicial review of the order under section 46110 of 
this title. The Administrator shall be made a party to the 
judicial review proceedings. The findings of fact of the Board 
in any such case are conclusive if supported by substantial 
evidence.
  (e) Restrictions and Prohibitions.--The Administrator of the 
Federal Aviation Administration may--
          (1) restrict or prohibit issuing an airman 
        certificate to an alien; or
          (2) make issuing the certificate to an alien 
        dependent on a reciprocal agreement with the government 
        of a foreign country.
  (f) Controlled Substance Violations.--The Administrator of 
the Federal Aviation Administration may not issue an airman 
certificate to an individual whose certificate is revoked under 
section 44710 of this title except--
          (1) when the Administrator decides that issuing the 
        certificate will facilitate law enforcement efforts; 
        and
          (2) as provided in section 44710(e)(2) of this title.
  (g) Modifications in System.--(1) The Administrator of the 
Federal Aviation Administration shall make modifications in the 
system for issuing airman certificates necessary to make the 
system more effective in serving the needs of airmen and 
officials responsible for enforcing laws related to the 
regulation of controlled substances (as defined in section 102 
of the Comprehensive Drug Abuse Prevention and Control Act of 
1970 (21 U.S.C. 802)) and related to combating acts of 
terrorism. The modifications shall ensure positive and 
verifiable identification of each individual applying for or 
holding a certificate and shall address at least each of the 
following deficiencies in, and abuses of, the existing system:
          (A) the use of fictitious names and addresses by 
        applicants for those certificates.
          (B) the use of stolen or fraudulent identification in 
        applying for those certificates.
          (C) the use by an applicant of a post office box or 
        ``mail drop'' as a return address to evade 
        identification of the applicant's address.
          (D) the use of counterfeit and stolen airman 
        certificates by pilots.
          (E) the absence of information about physical 
        characteristics of holders of those certificates.
  (2) The Administrator of the Federal Aviation Administration 
shall prescribe regulations to carry out paragraph (1) of this 
subsection and provide a written explanation of how the 
regulations address each of the deficiencies and abuses 
described in paragraph (1). In prescribing the regulations, the 
Administrator of the Federal Aviation Administration shall 
consult with the Administrator of Drug Enforcement, the 
Commissioner of Customs, other law enforcement officials of the 
United States Government, representatives of State and local 
law enforcement officials, representatives of the general 
aviation aircraft industry, representatives of users of general 
aviation aircraft, and other interested persons.
  (3) For purposes of this section, the term ``acts of 
terrorism'' means an activity that involves a violent act or an 
act dangerous to human life that is a violation of the criminal 
laws of the United States or of any State, or that would be a 
criminal violation if committed within the jurisdiction of the 
United States or of any State, and appears to be intended to 
intimidate or coerce a civilian population to influence the 
policy of a government by intimidation or coercion or to affect 
the conduct of a government by assassination or kidnaping.
  (4) The Administrator is authorized and directed to work with 
State and local authorities, and other Federal agencies, to 
assist in the identification of individuals applying for or 
holding airmen certificates.
  [(h) Records of Employment of Pilot Applicants.--
          [(1) In general.--Subject to paragraph (14), before 
        allowing an individual to begin service as a pilot, an 
        air carrier shall request and receive the following 
        information:
                  [(A) FAA records.--From the Administrator of 
                the Federal Aviation Administration, records 
                pertaining to the individual that are 
                maintained by the Administrator concerning--
                          [(i) current airman certificates 
                        (including airman medical certificates) 
                        and associated type ratings, including 
                        any limitations to those certificates 
                        and ratings; and
                          [(ii) summaries of legal enforcement 
                        actions resulting in a finding by the 
                        Administrator of a violation of this 
                        title or a regulation prescribed or 
                        order issued under this title that was 
                        not subsequently overturned.
                  [(B) Air carrier and other records.--From any 
                air carrier or other person (except a branch of 
                the United States Armed Forces, the National 
                Guard, or a reserve component of the United 
                States Armed Forces) that has employed the 
                individual as a pilot of a civil or public 
                aircraft at any time during the 5-year period 
                preceding the date of the employment 
                application of the individual, or from the 
                trustee in bankruptcy for such air carrier or 
                person--
                          [(i) records pertaining to the 
                        individual that are maintained by an 
                        air carrier (other than records 
                        relating to flight time, duty time, or 
                        rest time) under regulations set forth 
                        in--
                                  [(I) section 121.683 of title 
                                14, Code of Federal 
                                Regulations;
                                  (II) paragraph (A) of section 
                                VI, appendix I, part 121 of 
                                such title;
                                  [(III) paragraph (A) of 
                                section IV, appendix J, part 
                                121 of such title;
                                  [(IV) section 125.401 of such 
                                title; and
                                  [(V) section 135.63(a)(4) of 
                                such title; and
                          [(ii) other records pertaining to the 
                        individual's performance as a pilot 
                        that are maintained by the air carrier 
                        or person concerning--
                                  [(I) the training, 
                                qualifications, proficiency, or 
                                professional competence of the 
                                individual, including comments 
                                and evaluations made by a check 
                                airman designated in accordance 
                                with section 121.411, 125.295, 
                                or 135.337 of such title;
                                  [(II) any disciplinary action 
                                taken with respect to the 
                                individual that was not 
                                subsequently overturned; and
                                  [(III) any release from 
                                employment or resignation, 
                                termination, or 
                                disqualification with respect 
                                to employment.
                  [(C) National driver register records.--In 
                accordance with section 30305(b)(8) of this 
                title, from the chief driver licensing official 
                of a State, information concerning the motor 
                vehicle driving record of the individual.
          [(2) Written consent; release from liability.--An air 
        carrier making a request for records under paragraph 
        (1)--
                  [(A) shall be required to obtain written 
                consent to the release of those records from 
                the individual that is the subject of the 
                records requested; and
                  [(B) may, notwithstanding any other provision 
                of law or agreement to the contrary, require 
                the individual who is the subject of the 
                records to request to execute a release from 
                liability for any claim arising from the 
                furnishing of such records to or the use of 
                such records by such air carrier (other than a 
                claim arising from furnishing information known 
                to be false and maintained in violation of a 
                criminal statute).
          [(3) 5-year reporting period.--A person shall not 
        furnish a record in response to a request made under 
        paragraph (1) if the record was entered more than 5 
        years before the date of the request, unless the 
        information concerns a revocation or suspension of an 
        airman certificate or motor vehicle license that is in 
        effect on the date of the request.
          [(4) Requirement to maintain records.--The 
        Administrator and air carriers shall maintain pilot 
        records described in paragraphs (1)(A) and (1)(B) for a 
        period of at least 5 years.
          [(5) Receipt of consent; provision of information.--A 
        person shall not furnish a record in response to a 
        request made under paragraph (1) without first 
        obtaining a copy of the written consent of the 
        individual who is the subject of the records requested; 
        except that, for purposes of paragraph (15), the 
        Administrator may allow an individual designated by the 
        Administrator to accept and maintain written consent on 
        behalf of the Administrator for records requested under 
        paragraph (1)(A). A person who receives a request for 
        records under this subsection shall furnish a copy of 
        all of such requested records maintained by the person 
        not later than 30 days after receiving the request.
          [(6) Right to receive notice and copy of any record 
        furnished.--A person who receives a request for records 
        under paragraph (1) shall provide to the individual who 
        is the subject of the records--
                  [(A) on or before the 20th day following the 
                date of receipt of the request, written notice 
                of the request and of the individual's right to 
                receive a copy of such records; and
                  [(B) in accordance with paragraph (10), a 
                copy of such records, if requested by the 
                individual.
          [(7) Reasonable charges for processing requests and 
        furnishing copies.--A person who receives a request 
        under paragraph (1) or (6) may establish a reasonable 
        charge for the cost of processing the request and 
        furnishing copies of the requested records.
          [(8) Standard forms.--The Administrator shall 
        promulgate--
                  (A) standard forms that may be used by an air 
                carrier to request records under paragraph (1); 
                and
                  [(B) standard forms that may be used by an 
                air carrier to--
                          [(i) obtain the written consent of 
                        the individual who is the subject of a 
                        request under paragraph (1); and
                          [(ii) inform the individual of--
                                  [(I) the request; and
                                  ](II) the individual right of 
                                that individual to receive a 
                                copy of any records furnished 
                                in response to the request.
          [(9) Right to correct inaccuracies.--An air carrier 
        that maintains or requests and receives the records of 
        an individual under paragraph (1) shall provide the 
        individual with a reasonable opportunity to submit 
        written comments to correct any inaccuracies contained 
        in the records before making a final hiring decision 
        with respect to the individual.
          [(10) Right of pilot to review certain records.--
        Notwithstanding any other provision of law or 
        agreement, an air carrier shall, upon written request 
        from a pilot who is or has been employed by such 
        carrier, make available, within a reasonable time, but 
        not later than 30 days after the date of the request, 
        to the pilot for review, any and all employment records 
        referred to in paragraph (1)(B)(i) or (ii) pertaining 
        to the employment of the pilot.
          [(11) Privacy protections.--An air carrier that 
        receives the records of an individual under paragraph 
        (1) may use such records only to assess the 
        qualifications of the individual in deciding whether or 
        not to hire the individual as a pilot. The air carrier 
        shall take such actions as may be necessary to protect 
        the privacy of the pilot and the confidentiality of the 
        records, including ensuring that information contained 
        in the records is not divulged to any individual that 
        is not directly involved in the hiring decision.
          [(12) Periodic review.--Not later than 18 months 
        after the date of the enactment of the Pilot Records 
        Improvement Act of 1996, and at least once every 3 
        years thereafter, the Administrator shall transmit to 
        Congress a statement that contains, taking into account 
        recent developments in the aviation industry--
                  [(A) recommendations by the Administrator 
                concerning proposed changes to Federal Aviation 
                Administration records, air carrier records, 
                and other records required to be furnished 
                under subparagraphs (A) and (B) of paragraph 
                (1); or
                  [(B) reasons why the Administrator does not 
                recommend any proposed changes to the records 
                referred to in subparagraph (A).
          [(13) Regulations.--The Administrator may prescribe 
        such regulations as shall be necessary--
                  [(A) to protect--
                          [(i) the personal privacy of any 
                        individual whose records are requested 
                        under paragraph (1) and disseminated 
                        under paragraph (15); and
                          [(ii) the confidentiality of those 
                        records;
                  [(B) to preclude the further dissemination of 
                records received under paragraph (1) by the 
                person who requested those records; and
                  [(C) to ensure prompt compliance with any 
                request made under paragraph (1).
          [(14) Special rules with respect to certain pilots.--
                  [(A) Pilots of certain small aircraft.--
                Notwithstanding paragraph (1), an air carrier, 
                before receiving information requested about an 
                individual under paragraph (1), may allow the 
                individual to begin service for a period not to 
                exceed 90 days as a pilot of an aircraft with a 
                maximum payload capacity (as defined in section 
                119.3 of title 14, Code of Federal Regulations) 
                of 7,500 pounds or less, or a helicopter, on a 
                flight that is not a scheduled operation (as 
                defined in such section). Before the end of the 
                90-day period, the air carrier shall obtain and 
                evaluate such information. The contract between 
                the carrier and the individual shall contain a 
                term that provides that the continuation of the 
                individual's employment, after the last day of 
                the 90-day period, depends on a satisfactory 
                evaluation.
                  [(B) Good faith exception.--Notwithstanding 
                paragraph (1), an air carrier, without 
                obtaining information about an individual under 
                paragraph (1)(B) from an air carrier or other 
                person that no longer exists or from a foreign 
                government or entity that employed the 
                individual, may allow the individual to begin 
                service as a pilot if the air carrier required 
                to request the information has made a 
                documented good faith attempt to obtain such 
                information.
          [(15) Electronic access to FAA records.--For the 
        purpose of increasing timely and efficient access to 
        Federal Aviation Administration records described in 
        paragraph (1), the Administrator may allow, under terms 
        established by the Administrator, an individual 
        designated by the air carrier to have electronic access 
        to a specified database containing information about 
        such records. The terms shall limit such access to 
        instances in which information in the database is 
        required by the designated individual in making a 
        hiring decision concerning a pilot applicant and shall 
        require that the designated individual provide 
        assurances satisfactory to the Administrator that 
        information obtained using such access will not be used 
        for any purpose other than making the hiring decision.]
  (h) Records of Employment, Training, and Testing.--
          (1) In general.--The Administrator of the Federal 
        Aviation Administration shall establish and maintain a 
        pilot employment, training, and testing database and 
        shall publish notice in the Federal Register when the 
        database is operational. The database shall include the 
        following information:
                  (A) FAA records.--From the Federal Aviation 
                Administration, records pertaining to the 
                individual that are maintained by the 
                Administration concerning--
                          (i) current airman certificates 
                        (including airman medical certificates) 
                        and associated type ratings, including 
                        any limitations to those certificates 
                        and ratings;
                          (ii) any failed attempt of the 
                        individual to pass a practical test 
                        required to obtain a certificate or 
                        type rating under part 61 of title 14, 
                        Code of Federal Regulations; and
                          (iii) summaries of legal enforcement 
                        actions resulting in a finding by the 
                        Administrator of a violation of this 
                        title or a regulation prescribed or 
                        order issued under this title that was 
                        not subsequently overturned.
                  (B) Air carrier and other records.--From any 
                air carrier or other person (except a branch of 
                the United States Armed Forces, the National 
                Guard, or a reserve component of the United 
                States Armed Forces) that has employed the 
                individual as a pilot of a civil or public 
                aircraft, or from the trustee in bankruptcy for 
                such air carrier or person--
                          (i) records pertaining to the 
                        individual that are maintained by an 
                        air carrier (other than records 
                        relating to flight time, duty time, or 
                        rest time) under regulations set forth 
                        in--
                                  (I) section 121.683 of title 
                                14, Code of Federal 
                                Regulations;
                                  (II) paragraph (A) of section 
                                VI, appendix I, part 121 of 
                                such title;
                                  (III) paragraph (A) of 
                                section IV, appendix J, part 
                                121 of such title;
                                  (IV) section 125.401 of such 
                                title; and
                                  (V) section 135.63(a)(4) of 
                                such title; and
                          (ii) other records pertaining to the 
                        individual's performance as a pilot 
                        that are maintained by the air carrier 
                        or person concerning--
                                  (I) the training, 
                                qualifications, proficiency, or 
                                professional competence of the 
                                individual, including comments 
                                and evaluations made by a check 
                                airman designated in accordance 
                                with section 121.411, 125.295, 
                                or 135.337 of such title;
                                  (II) any disciplinary action 
                                taken with respect to the 
                                individual that was not 
                                subsequently overturned; and
                                  (III) any release from 
                                employment or resignation, 
                                termination, or 
                                disqualification with respect 
                                to employment.
                  (C) National driver register records.--In 
                accordance with section 30305(b)(8), from the 
                chief driver licensing official of a State, 
                information concerning the motor vehicle 
                driving record of the individual.
          (2) Records of current employees.--Each air carrier 
        shall submit to the Administrator, for inclusion in the 
        database established under paragraph (1)--
                  (A) not later than 180 days after the date on 
                which notice of the establishment of the 
                database is published, the records described in 
                paragraph (1)(B) concerning any pilot employed 
                by the air carrier; and
                  (B) after such date, not later than 30 days 
                after the generation of any new records 
                described in paragraph (1)(B), such new 
                records.
          (3) Right of pilot to review.--Notwithstanding any 
        other provision of law or agreement, the Administrator, 
        upon written request from a pilot, shall make available 
        to the pilot for review and correction, within a 
        reasonable time, but not later than 30 days after the 
        date of the request, a copy of all records referred to 
        in paragraph (1) pertaining to the pilot.
          (4) Right to receive notice and copy of any record 
        furnished.--A person who receives a request for records 
        described in paragraph (1) shall provide to the 
        individual who is the subject of the records--
                  (A) on or before the 20th day following the 
                date of receipt of the request, written notice 
                of the request and of the individual's right to 
                receive a copy of such records; and
                  (B) in accordance with paragraph (3), a copy 
                of such records, if requested by the 
                individual.
          (5) Right to correct inaccuracies.--An air carrier 
        that maintains or requests and receives the records of 
        an individual under paragraph (1) shall provide the 
        individual with a reasonable opportunity to submit 
        written comments to correct any inaccuracies contained 
        in the records before making a final hiring decision 
        with respect to the individual. After the database 
        established under paragraph (1) is operational, the air 
        carrier shall submit any corrections made or accepted 
        by the air carrier to the Administration for inclusion 
        in the database within 30 days after the corrections 
        are made or accepted by the air carrier.
          (6) Privacy protections.--An air carrier that 
        maintains, or requests and receives, the records 
        described in paragraph (1) of an individual may use 
        such records only to assess the qualifications of the 
        individual in deciding whether or not to hire the 
        individual as a pilot. The air carrier shall take such 
        actions as may be necessary to protect the privacy of 
        the pilot and the confidentiality of the records, 
        including ensuring that information contained in the 
        records is not divulged to any individual that is not 
        directly involved in the hiring decision.
          (7) Periodic review.--Not later than 18 months after 
        the date of the enactment of the FAA Air Transportation 
        Modernization and Safety Improvement Act, and at least 
        once every 3 years thereafter, the Administrator shall 
        submit to Congress a statement that contains, taking 
        into account recent developments in the aviation 
        industry--
                  (A) recommendations by the Administrator 
                concerning proposed changes to Administration 
                records, air carrier records, and other records 
                required to be furnished under paragraph (1); 
                or
                  (B) reasons why the Administrator does not 
                recommend any proposed changes to the records 
                referred to in paragraph (1).
          (8) Rulemaking.--The Administrator shall prescribe 
        such regulations as may be necessary--
                  (A) to protect--
                          (i) the personal privacy of any 
                        individual whose records are included 
                        in the database established under 
                        paragraph (1); and
                          (ii) the confidentiality of those 
                        records;
                  (B) to preclude the further dissemination of 
                records received under paragraph (1) by the 
                person who requested those records; and
                  (C) to ensure prompt compliance with any 
                request made under this subsection.
          (9) Special rules with respect to certain pilots.--
                  (A) Pilots of certain small aircraft.--
                Notwithstanding paragraph (1), an air carrier, 
                before receiving information requested about an 
                individual under this subsection, may allow the 
                individual to begin service for a period not to 
                exceed 90 days as a pilot of an aircraft with a 
                maximum payload capacity (as defined in section 
                119.3 of title 14, Code of Federal Regulations) 
                of 7,500 pounds or less, or a helicopter, on a 
                flight that is not a scheduled operation (as 
                defined in such section). Before the end of the 
                90-day period, the air carrier shall obtain and 
                evaluate such information. The contract between 
                the carrier and the individual shall contain a 
                term that provides that the continuation of the 
                individual's employment, after the last day of 
                the 90-day period, depends on a satisfactory 
                evaluation.
                  (B) Good faith exception.--Until the database 
                required by paragraph (1) is established, an 
                air carrier, without obtaining information 
                about an individual under paragraph (1) from an 
                air carrier or other person that no longer 
                exists or from a foreign government or entity 
                that employed the individual, may allow the 
                individual to begin service as a pilot if the 
                air carrier required to request the information 
                has made a documented good faith attempt to 
                obtain such information.
          (10) Review of prospective pilots' records.--Except 
        as provided in paragraph (9), before allowing an 
        individual to begin service as a pilot an air carrier 
        shall request a copy of all the records described in 
        paragraph (1) pertaining to the pilot and review the 
        records.
          (11) Electronic access to FAA records.--For the 
        purpose of increasing timely and efficient access to 
        Federal Aviation Administration records described in 
        paragraph (1), the Administrator may allow, under terms 
        established by the Administrator, an individual 
        designated by the air carrier to have electronic access 
        to a specified database containing information about 
        such records. The terms shall limit such access to 
        instances in which information in the database is 
        required by the designated individual in making a 
        hiring decision concerning a pilot applicant and shall 
        require that the designated individual provide 
        assurances satisfactory to the Administrator that 
        information obtained using such access will not be used 
        for any purpose other than making the hiring decision.
  (i) Limitation on Liability; Preemption of State Law.--
          (1) Limitation on liability.--No action or proceeding 
        may be brought by or on behalf of an individual who has 
        applied for or is seeking a position with an air 
        carrier as a pilot [and who has signed a release from 
        liability], as provided for under paragraph (2), 
        against--
                  (A) the air carrier requesting the records of 
                that individual under subsection (h)(1);
                  (B) a person who has [complied with such 
                request;] furnished records to the 
                Administrator in accordance with subsection 
                (h)(1);
                  (C) a person who has entered information 
                contained in the individual's records; or
                  (D) an agent or employee of a person 
                described in subparagraph (A) or (B);
        in the nature of an action for defamation, invasion of 
        privacy, negligence, interference with contract, or 
        otherwise, or under any Federal or State law with 
        respect to the furnishing or use of such records in 
        accordance with subsection (h).
          (2) Preemption.--No State or political subdivision 
        thereof may enact, prescribe, issue, continue in 
        effect, or enforce any law (including any regulation, 
        standard, or other provision having the force and 
        effect of law) that prohibits, penalizes, or imposes 
        liability for furnishing or using records in accordance 
        with subsection (h).
          (3) Provision of knowingly false information.--
        Paragraphs (1) and (2) shall not apply with respect to 
        a person who furnishes information in response to a 
        request made under subsection (h)(1), that--
                  (A) the person knows is false; and
                  (B) was maintained in violation of a criminal 
                statute of the United States.
  (j) Limitation on Statutory Construction.--Nothing in 
subsection (h) shall be construed as precluding the 
availability of the records of a pilot in an investigation or 
other proceeding concerning an accident or incident conducted 
by the Administrator, the National Transportation Safety Board, 
or a court.

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

  (a) Type Certificates.--
          (1) Issuance, investigations, and tests.--The 
        Administrator of the Federal Aviation Administration 
        shall issue a type certificate for an aircraft, 
        aircraft engine, or propeller, or for an appliance 
        specified under paragraph (2)(A) of this subsection 
        when the Administrator finds that the aircraft, 
        aircraft engine, propeller, or appliance is properly 
        designed and manufactured, performs properly, and meets 
        the regulations and minimum standards prescribed under 
        section 44701(a) of this title. On receiving an 
        application for a type certificate, the Administrator 
        shall investigate the application and may conduct a 
        hearing. The Administrator shall make, or require the 
        applicant to make, tests the Administrator considers 
        necessary in the interest of safety.
          (2) Specifications.--The Administrator may--
                  (A) specify in regulations those appliances 
                that reasonably require a type certificate in 
                the interest of safety;
                  (B) include in a type certificate terms 
                required in the interest of safety; and
                  (C) record on the certificate a numerical 
                specification of the essential factors related 
                to the performance of the aircraft, aircraft 
                engine, or propeller for which the certificate 
                is issued.
          (3) Special rules for new aircraft and appliances.--
        Except as provided in paragraph (4), 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.
          (4) Limitation for aircraft manufactured before 
        august 5, 2004.--Paragraph (3) shall not apply to a 
        person who began the manufacture of an aircraft before 
        August 5, 2004, and who demonstrates to the 
        satisfaction of the Administrator that such manufacture 
        began before August 5, 2004, if the name of the holder 
        of the type certificate for the aircraft does not 
        appear on the airworthiness certificate or 
        identification plate of the aircraft. The holder of the 
        type certificate for the aircraft shall not be 
        responsible for the continued airworthiness of the 
        aircraft. A person may invoke the exception provided by 
        this paragraph with regard to the manufacture of only 
        one aircraft.
  (5) Release of data.--
          (A) Notwithstanding any other provision of law, the 
        Administrator may designate, without the consent of the 
        owner of record, engineering data in the agency's 
        possession related to a type certificate or a 
        supplemental type certificate for an aircraft, engine, 
        propeller or appliance as public data, and therefore 
        releasable, upon request, to a person seeking to 
        maintain the airworthiness of such product, if the 
        Administrator determines that--
                  (i) the certificate containing the requested 
                data has been inactive for 3 years;
                  (ii) the owner of record, or the owner of 
                record's heir, of the type certificate or 
                supplemental certificate has not been located 
                despite a search of due diligence by the 
                agency; and
                  (iii) the designation of such data as public 
                data will enhance aviation safety.
          (B) In this section, the term ``engineering data'' 
        means type design drawings and specifications for the 
        entire product or change to the product, including the 
        original design data, and any associated supplier data 
        for individual parts or components approved as part of 
        the particular aeronautical product certificate.
  (b) Supplemental Type Certificates.--
          (1) Issuance.--The Administrator may issue a type 
        certificate designated as a supplemental type 
        certificate for a change to an aircraft, aircraft 
        engine, propeller, or appliance.
          (2) Contents.--A supplemental type certificate issued 
        under paragraph (1) shall consist of the change to the 
        aircraft, aircraft engine, propeller, or appliance with 
        respect to the previously issued type certificate for 
        the aircraft, aircraft engine, propeller, or appliance.
          (3) Requirement.--If the holder of a supplemental 
        type certificate agrees to permit another person to use 
        the certificate to modify an aircraft, aircraft engine, 
        propeller, or appliance, the holder shall provide the 
        other person with written evidence, in a form 
        acceptable to the Administrator, of that agreement. A 
        person may change an aircraft, aircraft engine, 
        propeller, or appliance based on a supplemental type 
        certificate only if the person requesting the change is 
        the holder of the supplemental type certificate or has 
        permission from the holder to make the change.
  (c) Production Certificates.--The Administrator shall issue a 
production certificate authorizing the production of a 
duplicate of an aircraft, aircraft engine, propeller, or 
appliance for which a type certificate has been issued when the 
Administrator finds the duplicate will conform to the 
certificate. On receiving an application, the Administrator 
shall inspect, and may require testing of, a duplicate to 
ensure that it conforms to the requirements of the certificate. 
The Administrator may include in a production certificate terms 
required in the interest of safety.
  (d) Airworthiness Certificates.--(1) The registered owner of 
an aircraft may apply to the Administrator for an airworthiness 
certificate for the aircraft. The Administrator shall issue an 
airworthiness certificate when the Administrator finds that the 
aircraft conforms to its type certificate and, after 
inspection, is in condition for safe operation. The 
Administrator shall register each airworthiness certificate and 
may include appropriate information in the certificate. The 
certificate number or other individual designation the 
Administrator requires shall be displayed on the aircraft. The 
Administrator may include in an airworthiness certificate terms 
required in the interest of safety.
  (2) A person applying for the issuance or renewal of an 
airworthiness certificate for an aircraft for which ownership 
has not been recorded under section 44107 or 44110 of this 
title must submit with the application information related to 
the ownership of the aircraft the Administrator decides is 
necessary to identify each person having a property interest in 
the aircraft and the kind and extent of the interest.
  (e) Design Organization Certificates.--
          (1) Issuance.--[Beginning 7 years after the date of 
        enactment of this subsection,] Effective January 1, 
        2013, 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] production 
        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).]
          (3) Issuance of certificate based on design 
        organization certification.--The Administrator may rely 
        on the Design Organization for certification of 
        compliance under this section.
          (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.

           *       *       *       *       *       *       *


Sec. 44711. Prohibitions and exemption

  (a) Prohibitions.--A person may not--
          (1) operate a civil aircraft in air commerce without 
        an airworthiness certificate in effect or in violation 
        of a term of the certificate;
          (2) serve in any capacity as an airman with respect 
        to a civil aircraft, aircraft engine, propeller, or 
        appliance used, or intended for use, in air commerce--
                  (A) without an airman certificate authorizing 
                the airman to serve in the capacity for which 
                the certificate was issued; or
                  (B) in violation of a term of the certificate 
                or a regulation prescribed or order issued 
                under section 44701(a) or (b) or any of 
                sections 44702-44716 of this title;
          (3) employ for service related to civil aircraft used 
        in air commerce an airman who does not have an airman 
        certificate authorizing the airman to serve in the 
        capacity for which the airman is employed;
          (4) operate as an air carrier without an air carrier 
        operating certificate or in violation of a term of the 
        certificate;
          (5) operate aircraft in air commerce in violation of 
        a regulation prescribed or certificate issued under 
        section 44701(a) or (b) or any of sections 44702-44716 
        of this title;
          (6) operate a seaplane or other aircraft of United 
        States registry on the high seas in violation of a 
        regulation under section 3 of the International 
        Navigational Rules Act of 1977 (33 U.S.C. 1602);
          (7) violate a term of an air agency, design 
        organization certificate, or production certificate or 
        a regulation prescribed or order issued under section 
        44701(a) or (b) or any of sections 44702-44716 of this 
        title related to the holder of the certificate;
          (8) operate an airport without an airport operating 
        certificate required under section 44706 of this title 
        or in violation of a term of the certificate; or
          (9) manufacture, deliver, sell, or offer for sale any 
        aviation fuel or additive in violation of a regulation 
        prescribed under section 44714 of this title.
  (b) Exemption.--On terms the Administrator of the Federal 
Aviation Administration prescribes as being in the public 
interest, the Administrator may exempt a foreign aircraft and 
airmen serving on the aircraft from subsection (a) of this 
section. However, an exemption from observing air traffic 
regulations may not be granted.
  (c) Prohibition on Employment of Convicted Counterfeit Part 
Traffickers.--No person subject to this chapter may knowingly 
employ anyone to perform a function related to the procurement, 
sale, production, or repair of a part or material, or the 
installation of a part into a civil aircraft, who has been 
convicted in a court of law of a violation of any Federal law 
relating to the installation, production, repair, or sale of a 
counterfeit or fraudulently-represented aviation part or 
material.
  (d) Post-employment restrictions for flight standards 
inspectors.--
          (1) Prohibition.--A person holding an operating 
        certificate issued under title 14, Code of Federal 
        Regulations, may not knowingly employ, or make a 
        contractual arrangement which permits, an individual to 
        act as an agent or representative of the certificate 
        holder in any matter before the Federal Aviation 
        Administration if the individual, in the preceding 3-
        year period--
                  (A) served as, or was responsible for 
                oversight of, a flight standards inspector of 
                the Administration; and
                  (B) had responsibility to inspect, or oversee 
                inspection of, the operations of the 
                certificate holder.
          (2) Written and oral communications.--For purposes of 
        paragraph (1), an individual shall be considered to be 
        acting as an agent or representative of a certificate 
        holder in a matter before the Federal Aviation 
        Administration if the individual makes any written or 
        oral communication on behalf of the certificate holder 
        to the Administration (or any of its officers or 
        employees) in connection with a particular matter, 
        whether or not involving a specific party and without 
        regard to whether the individual has participated in, 
        or had responsibility for, the particular matter while 
        serving as a flight standards inspector of the 
        Administration.

           *       *       *       *       *       *       *


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], Code of 
Federal Regulations, 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) ismilar 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) Minimum Language Skills.--
          (1) In general.--No certificate holder may use any 
        person to serve, nor may any person serve, as a flight 
        attendant under this part, unless that person has 
        demonstrated to an individual qualified to determine 
        proficiency the ability to read, speak, and write 
        English well enough to--
                  (A) read material written in English and 
                comprehend the information;
                  (B) speak and understand English sufficiently 
                to provide direction to, and understand and 
                answer questions from, English-speaking 
                individuals;
                  (C) write incident reports and statements and 
                log entries and statements; and
                  (D) carry out written and oral instructions 
                regarding the proper performance of their 
                duties.
          (2) Foreign flights.--The requirements of paragraph 
        (1) do not apply to service as a flight attendant 
        serving solely between points outside the United 
        States.
  [(f)] (g) 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.

           *       *       *       *       *       *       *


44730. Inspection of foreign repair stations

  (a) In General.--Within 1 year after the date of enactment of 
the FAA Air Transportation Modernization and Safety Improvement 
Act the Administrator of the Federal Aviation Administration 
shall establish and implement a safety assessment system for 
all part 145 repair stations based on the type, scope, and 
complexity of work being performed. The system shall--
          (1) ensure that repair stations outside the United 
        States are subject to appropriate inspections based on 
        identified risk and consistent with existing United 
        States requirements;
          (2) consider inspection results and findings 
        submitted by foreign civil aviation authorities 
        operating under a maintenance safety or maintenance 
        implementation agreement with the United States in 
        meeting the requirements of the safety assessment 
        system; and
          (3) require all maintenance safety or maintenance 
        implementation agreements to provide an opportunity for 
        the Federal Aviation Administration to conduct 
        independent inspections of covered part 145 repair 
        stations when safety concerns warrant such inspections.
  (b) Notice to Congress of Negotiations.--The Administrator 
shall notify the Senate Committee on Commerce, Science, and 
Transportation and the House of Representatives Committee on 
Transportation and Infrastructure within 30 days after 
initiating formal negotiations with foreign aviation 
authorities or other appropriate foreign government agencies on 
a new maintenance safety or maintenance implementation 
agreement.
  (c) Annual Report.--The Administrator shall publish an annual 
report on the Federal Aviation Administration's oversight of 
part 145 repair stations and implementation of the safety 
assessment system required by subsection (a). The report 
shall--
          (1) describe in detail any improvements in the 
        Federal Aviation Administration's ability to identify 
        and track where part 121 air carrier repair work is 
        performed;
          (2) include a staffing model to determine the best 
        placement of inspectors and the number of inspectors 
        needed;
          (3) describe the training provided to inspectors; and
          (4) include an assessment of the quality of 
        monitoring and surveillance by the Federal Aviation 
        Administration of work provided by its inspectors and 
        the inspectors of foreign authorities operating under a 
        maintenance safety or implementation agreement.
  (d) Alcohol and Controlled Substance Testing Program 
Requirements.--
          (1) In general.--The Secretaries of State and 
        Transportation jointly shall request the governments of 
        foreign countries that are members of the International 
        Civil Aviation Organization to establish international 
        standards for alcohol and controlled substances testing 
        of persons that perform safety sensitive maintenance 
        functions upon commercial air carrier aircraft.
          (2) Application to part 121 aircraft work.--Within 1 
        year after the date of enactment of the FAA Air 
        Transportation Modernization and Safety Improvement Act 
        the Administrator shall promulgate a proposed rule 
        requiring that all part 145 repair station employees 
        responsible for safety-sensitive functions on part 121 
        air carrier aircraft are subject to an alcohol and 
        controlled substance testing program determined 
        acceptable by the Administrator and consistent with the 
        applicable laws of the country in which the repair 
        station is located.
  (e) Biannual Inspections.--The Administrator shall require 
part 145 repair stations to be inspected twice each year by 
Federal Aviation Administration safety inspectors, regardless 
of where the station is located, in a manner consistent with 
United States obligations under international agreements.
  (f) Definitions.--In this section:
          (1) Part 121 air carrier.--The term ``part 121 air 
        carrier'' means an air carrier that holds a certificate 
        issued under part 121 of title 14, Code of Federal 
        Regulations.
          (2) Part 145 repair station.--The term ``part 145 
        repair station'' means a repair station that holds a 
        certificate issued under part 145 of title 14, Code of 
        Federal Regulations.

Sec. 44731. Training of flight attendants and gate agents

  (a) Training Required.--In addition to other training 
required under this chapter, each air carrier shall provide 
initial and annual recurring training for flight attendants and 
gate agents employed or contracted by such air carrier 
regarding--
          (1) serving alcohol to passengers;
          (2) recognizing intoxicated passengers; and
          (3) dealing with disruptive passengers.
  (b) Situational Training.--In carrying out the training 
required under subsection (a), each air carrier shall provide 
situational training to flight attendants and gate agents on 
the proper method for dealing with intoxicated passengers who 
act in a belligerent manner.
  (c) Definitions.--In this section:
          (1) Air carrier.--The term ``air carrier'' means a 
        person or commercial enterprise that has been issued an 
        air carrier operating certificate under section 44705.
          (2) Flight attendant.--The term ``flight attendant'' 
        has the meaning given the term in section 44728(f).
          (3) Gate agent.--The term ``gate agent'' means an 
        individual working at an airport whose responsibilities 
        include facilitating passenger access to commercial 
        aircraft.
          (4) Passenger.--The term ``passenger'' means an 
        individual traveling on a commercial aircraft, from the 
        time at which the individual arrives at the airport 
        from which such aircraft departs until the time the 
        individual leaves the airport to which such aircraft 
        arrives.

                            CHAPTER 53. FEES

Sec. 45301. General provisions

  (a) Schedule of Fees.--The Administrator shall establish a 
schedule of new fees, and a collection process for such fees, 
for the following services provided by the Administration:
          (1) Air traffic control and related services provided 
        to aircraft other than military and civilian aircraft 
        of the United States government or of a foreign 
        government that neither take off from, nor land in, the 
        United States.
          (2) Services (other than air traffic control 
        services) provided to a foreign government or services 
        provided to any entity obtaining services outside the 
        United States, except that the Administrator shall not 
        impose fees in any manner for production-certification 
        related service performed outside the United States 
        pertaining to aeronautical products manufactured 
        outside the United States.
  [(b) Limitations.--
          [(1) Authorization and impact considerations.--In 
        establishing fees under subsection (a), the 
        Administrator--
                  [(A) is authorized to recover in fiscal year 
                1997 $100,000,000; and
                  [(B) shall ensure that each of the fees 
                required by subsection (a) is reasonably 
                related to the Administration's costs, as 
                determined by the Administrator, of providing 
                the service rendered. Services for which costs 
                may be recovered include the costs of air 
                traffic control, navigation, weather services, 
                training and emergency services which are 
                available to facilitate safe transportation 
                over the United States, and other services 
                provided by the Administrator or by programs 
                financed by the Administrator to flights that 
                neither take off nor land in the United States. 
                The Determination of such costs by the 
                Administrator is not subject to judicial 
                review.
          [(2) Publication; comment.--The Administrator shall 
        publish in the Federal Register an initial fee schedule 
        and associated collection process as an interim final 
        rule, pursuant to which public comment will be sought 
        and a final rule issued.]
  (b) Limitations.--
          (1) In general.--In establishing fees under 
        subsection (a), the Administrator shall ensure that the 
        fees required by subsection (a) are reasonably related 
        to the Administration's costs, as determined by the 
        Administrator, of providing the services rendered. 
        Services for which costs may be recovered include the 
        costs of air traffic control, navigation, weather 
        services, training, and emergency services which are 
        available to facilitate safe transportation over the 
        United States, and other services provided by the 
        Administrator or by programs financed by the 
        Administrator to flights that neither take off nor land 
        in the United States. The determination of such costs 
        by the Administrator is not subject to judicial review.
          (2) Adjustment of fees.--The Administrator shall 
        adjust the overflight fees established by subsection 
        (a)(1) by expedited rulemaking and begin collections 
        under the adjusted fees by October 1, 2010. In 
        developing the adjusted overflight fees, the 
        Administrator shall seek and consider the 
        recommendations, if any, offered by the Aviation 
        Rulemaking Committee for Overflight Fees that are 
        intended to ensure that overflight fees are reasonably 
        related to the Administrator's costs of providing air 
        traffic control and related services to overflights. In 
        addition, the Administrator may periodically modify the 
        fees established under this section either on the 
        Administrator's own initiative or on a recommendation 
        from the Air Traffic Control Modernization Board.
          (3) Cost data.--The adjustment of overflight fees 
        under paragraph (2) shall be based on the costs to the 
        Administration of providing the air traffic control and 
        related activities, services, facilities, and equipment 
        using the available data derived from the 
        Administration's cost accounting system and cost 
        allocation system to users, as well as budget and 
        operational data.
          (4) Aircraft altitude.--Nothing in this section shall 
        require the Administrator to take into account aircraft 
        altitude in establishing any fee for aircraft 
        operations in en route or oceanic airspace.
          (5) Costs defined.--In this subsection, the term 
        ``costs'' means those costs associated with the 
        operation, maintenance, debt service, and overhead 
        expenses of the services provided and the facilities 
        and equipment used in such services, including the 
        projected costs for the period during which the 
        services will be provided.
          (6) Publication; comment.--The Administrator shall 
        publish in the Federal Register any fee schedule under 
        this section, including any adjusted overflight fee 
        schedule, and the associated collection process as a 
        proposed rule, pursuant to which public comment will be 
        sought and a final rule issued.
  (c) Use of Experts and Consultants.--In developing the 
system, the Administrator may consult with such nongovernmental 
experts as the Administrator may employ and the Administrator 
may utilize the services of experts and consultants under 
section 3109 of title 5 without regard to the limitation 
imposed by the last sentence of section 3109(b) of such title, 
and may contract on a sole source basis, notwithstanding any 
other provision of law to the contrary. Notwithstanding any 
other provision of law to the contrary, the Administrator may 
retain such experts under a contract awarded on a basis other 
than a competitive basis and without regard to any such 
provisions requiring competitive bidding or precluding sole 
source contract authority.
  (d) Production-Certification Related Service Defined.--In 
this section, the term ``production-certification related 
service'' has the meaning given that term in appendix C of part 
187 of title 14, Code of Federal Regulations.

           *       *       *       *       *       *       *


Sec. 45303. Administrative provisions

  (a) Fees Payable to Administrator.--All fees imposed and 
amounts collected under this chapter for services performed, or 
materials furnished, by the Federal Aviation Administration are 
payable to the Administrator of the Federal Aviation 
Administration.
  (b) Refunds.--The Administrator may refund any fee paid by 
mistake or any amount paid in excess of that required.
  (c) Receipts Credited to Account.--Notwithstanding section 
3302 of title 31, all fees and amounts collected by the 
Administration, except insurance premiums and other fees 
charged for the provision of insurance and deposited in the 
Aviation Insurance Revolving Fund and interest earned on 
investments of such Fund, and except amounts which on September 
30, 1996, are required to be credited to the general fund of 
the Treasury (whether imposed under this section or not)--
          (1) shall be credited to a separate account 
        established in the Treasury and made available for 
        Administration activities;
          [(2) shall be available immediately for expenditure 
        but only for congressionally authorized and intended 
        purposes; and]
          (2) shall be available to the Administrator for 
        expenditure for purposes authorized by Congress for the 
        Federal Aviation Administration, however, fees 
        established by section 45301(a)(1) of title 49 of the 
        United States Code shall be available only to pay the 
        cost of activities and services for which the fee is 
        imposed, including the costs to determine, assess, 
        review, and collect the fee; and
          (3) shall remain available until expended.
  (d) Annual Budget Report by Administrator.--The Administrator 
shall, on the same day each year as the President submits the 
annual budget to Congress, provide to the Committee on 
Commerce, Science, and Transportation of the Senate and the 
Committee on Transportation and Infrastructure of the House of 
Representatives--
          (1) a list of fee collections by the Administration 
        during the preceding fiscal year;
          (2) a list of activities by the Administration during 
        the preceding fiscal year that were supported by fee 
        expenditures and appropriations;
          (3) budget plans for significant programs, projects, 
        and activities of the Administration, including out-
        year funding estimates;
          (4) any proposed disposition of surplus fees by the 
        Administration; and
          (5) such other information as those committees 
        consider necessary.
  (e) Development of Cost Accounting System.--The 
Administration shall develop a cost accounting system that 
adequately and accurately reflects the investments, operating 
and overhead costs, revenues, and other financial measurement 
and reporting aspects of its operations.
  (f) Compensation to Carriers for Acting as Collection 
Agents.--The Administration shall prescribe regulations to 
ensure that any air carrier required, pursuant to the Air 
Traffic Management System Performance Improvement Act of 1996 
or any amendments made by that Act, to collect a fee imposed on 
another party by the Administrator may collect from such other 
party an additional uniform amount that the Administrator 
determines reflects the necessary and reasonable expenses (net 
of interest accruing to the carrier after collection and before 
remittance) incurred in collecting and handling the fee.

                 PART B--AIRPORT DEVELOPMENT AND NOISE

                    CHAPTER 471. AIRPORT DEVELOPMENT

Sec. 47102. Definitions

  In this subchapter--
          (1) ``air carrier airport'' means a public airport 
        regularly served by--
                  (A) an air carrier certificated by the 
                Secretary of Transportation under section 41102 
                of this title (except a charter air carrier); 
                or
                  (B) at least one air carrier--
                          (i) operating under an exemption from 
                        section 41101(a)(1) of this title that 
                        the Secretary grants; and
                          (ii) having at least 2,500 passenger 
                        boardings at the airport during the 
                        prior calendar year.
          (2) ``airport''--
                  (A) means--
                          (i) an area of land or water used or 
                        intended to be used for the landing and 
                        taking off of aircraft;
                          (ii) an appurtenant area used or 
                        intended to be used for airport 
                        buildings or other airport facilities 
                        or rights of way; and
                          (iii) airport buildings and 
                        facilities located in any of those 
                        areas; and
                  (B) includes a heliport.
          (3) ``airport development'' means the following 
        activities, if undertaken by the sponsor, owner, or 
        operator of a public-use airport:
                  (A) constructing, repairing, or improving a 
                public-use airport, including--
                          (i) removing, lowering, relocating, 
                        marking, and lighting an airport 
                        hazard; and
                          (ii) preparing a plan or 
                        specification, including carrying out a 
                        field investigation.
                  (B) acquiring for, or installing at, a 
                public-use airport--
                          (i) a navigation aid or another aid 
                        (including a precision approach system) 
                        used by aircraft for landing at or 
                        taking off from the airport, including 
                        preparing the site as required by the 
                        acquisition or installation;
                          (ii) safety or security equipment, 
                        including explosive detection devices, 
                        universal access systems, and emergency 
                        call boxes, the Secretary requires by 
                        regulation for, or approves as 
                        contributing significantly to, the 
                        safety or security of individuals and 
                        property at the airport and integrated 
                        in-pavement lighting systems for 
                        runways and taxiways and other runway 
                        and taxiway incursion prevention 
                        devices;
                          (iii) equipment to remove snow, to 
                        measure runway surface friction, or for 
                        aviation-related weather reporting, 
                        including closed circuit weather 
                        surveillance equipment if the airport 
                        is located in Alaska;
                          (iv) firefighting and rescue 
                        equipment at an airport that serves 
                        scheduled passenger operations of air 
                        carrier aircraft designed for more than 
                        20 passenger seats;
                          (v) aircraft deicing equipment and 
                        structures (except aircraft deicing 
                        fluids and storage facilities for the 
                        equipment and fluids);
                          (vi) interactive training systems;
                          (vii) windshear detection equipment 
                        that is certified by the Administrator 
                        of the Federal Aviation Administration;
                          (viii) stainless steel adjustable 
                        lighting extensions approved by the 
                        Administrator;
                          (ix) engineered materials arresting 
                        systems as described in the Advisory 
                        Circular No. 150/5220-22 published by 
                        the Federal Aviation Administration on 
                        August 21, 1998, including any revision 
                        to the circular; and
                          (x) replacement of baggage conveyor 
                        systems, and reconfiguration of 
                        terminal baggage areas, that the 
                        Secretary determines are necessary to 
                        install bulk explosive detection 
                        devices; except that such activities 
                        shall be eligible for funding under 
                        this subchapter only using amounts 
                        apportioned under section 47114.
                  (C) acquiring an interest in land or 
                airspace, including land for future airport 
                development, that is needed--
                          (i) to carry out airport development 
                        described in subclause (A) or (B) of 
                        this clause; or
                          (ii) to remove or mitigate an 
                        existing airport hazard or prevent or 
                        limit the creation of a new airport 
                        hazard.
                  (D) acquiring land for, or constructing, a 
                burn area training structure on or off the 
                airport to provide live fire drill training for 
                aircraft rescue and firefighting personnel 
                required to receive the training under 
                regulations the Secretary prescribes, including 
                basic equipment and minimum structures to 
                support the training under standards the 
                Administrator of the Federal Aviation 
                Administration prescribes.
                  (E) relocating after December 31, 1991, an 
                air traffic control tower and any navigational 
                aid (including radar) if the relocation is 
                necessary to carry out a project approved by 
                the Secretary under this subchapter or under 
                section 40117.
                  (F) constructing, reconstructing, repairing, 
                or improving an airport, or purchasing capital 
                equipment for an airport, if necessary for 
                compliance with the responsibilities of the 
                operator or owner of the airport under the 
                Americans with Disabilities Act of 1990 (42 
                U.S.C. 12101 et seq.), the Clean Air Act (42 
                U.S.C. 7401 et seq.), and the Federal Water 
                Pollution Control Act (33 U.S.C. 1251 et seq.), 
                except constructing or purchasing capital 
                equipment that would benefit primarily a 
                revenue-producing area of the airport used by a 
                nonaeronautical business.
                  (G) acquiring land for, or work necessary to 
                construct, a pad suitable for deicing aircraft 
                before takeoff at a commercial service airport, 
                including constructing or reconstructing paved 
                areas, drainage collection structures, 
                treatment and discharge systems, appropriate 
                lighting, paved access for deicing vehicles and 
                aircraft, including acquiring glycol recovery 
                vehicles, but not including acquiring aircraft 
                deicing fluids or constructing or 
                reconstructing storage facilities for aircraft 
                deicing equipment or fluids.
                  (H) routine work to preserve and extend the 
                useful life of runways, taxiways, and aprons at 
                nonhub airports and airports that are not 
                primary airports, under guidelines issued by 
                the Administrator of the Federal Aviation 
                Administration.
                  (I) constructing, reconstructing, or 
                improving an airport, or purchasing nonrevenue 
                generating capital equipment to be owned by an 
                airport, for the purpose of transferring 
                passengers, cargo, or baggage between the 
                aeronautical and ground transportation modes on 
                airport property.
                  (J) constructing an air traffic control tower 
                or acquiring and installing air traffic 
                control, communications, and related equipment 
                at an air traffic control tower under the terms 
                specified in section 47124(b)(4).
                  (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)d if 
                such project will result in an airport 
                receiving appropriate emission credits as 
                described in section 47139.
                  (M) construction of mobile refueler parking 
                within a fuel farm at a nonprimary airport 
                meeting the requirements of section 112.8 of 
                title 40, Code of Federal Regulations.
          (4) ``airport hazard'' means a structure or object of 
        natural growth located on or near a public-use airport, 
        or a use of land near the airport, that obstructs or 
        otherwise is hazardous to the landing or taking off of 
        aircraft at or from the airport.
          (5) ``airport planning'' means planning as defined by 
        regulations the Secretary prescribes and includes 
        integrated airport system [planning.] planning and a 
        plan for recycling and minimizing the generation of 
        airport solid waste, consistent with applicable State 
        and local recycling laws, including the cost of a waste 
        audit.
          (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).
          (7) ``commercial service airport'' means a public 
        airport in a State that the Secretary determines has at 
        least 2,500 passenger boardings each year and is 
        receiving scheduled passenger aircraft service.
          (8) ``integrated airport system planning'' means 
        developing for planning purposes information and 
        guidance to decide the extent, kind, location, and 
        timing of airport development needed in a specific area 
        to establish a viable, balanced, and integrated system 
        of public-use airports, including--
                  (A) identifying system needs;
                  (B) developing an estimate of systemwide 
                development costs;
                  (C) conducting studies, surveys, and other 
                planning actions, including those related to 
                airport access, needed to decide which 
                aeronautical needs should be met by a system of 
                airports; and
                  (D) standards prescribed by a State, except 
                standards for safety of approaches, for airport 
                development at nonprimary public-use airports.
          (9) ``landed weight'' means the weight of aircraft 
        transporting only cargo in intrastate, interstate, and 
        foreign air transportation, as the Secretary determines 
        under regulations the Secretary prescribes.
          (10) ``large hub airport'' means a commercial service 
        airport that has at least 1.0 percent of the passenger 
        boardings.
          (11) ``low-emission technology'' means technology for 
        vehicles and equipment whose emission performance is 
        the best achievable under emission standards 
        established by the Environmental Protection Agency and 
        that relies exclusively on alternative fuels that are 
        substantially nonpetroleum based, as defined by the 
        Department of Energy, but not excluding hybrid systems 
        or natural gas powered vehicles.
          (12) ``medium hub airport'' means a commercial 
        service airport that has at least 0.25 percent but less 
        than 1.0 percent of the passenger boardings.
          (13) ``nonhub airport'' means a commercial service 
        airport that has less than 0.05 percent of the 
        passenger boardings.
          (14) ``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.
          (15) ``primary airport'' means a commercial service 
        airport the Secretary determines to have more than 
        10,000 passenger boardings each year.
          (16) ``project'' means a project, separate projects 
        included in one project grant application, or all 
        projects to be undertaken at an airport in a fiscal 
        year, to achieve airport development or airport 
        planning.
          (17) ``project cost'' means a cost involved in 
        carrying out a project.
          (18) ``project grant'' means a grant of money the 
        Secretary makes to a sponsor to carry out at least one 
        project.
          (19) ``public agency'' means--
                  (A) a State or political subdivision of a 
                State;
                  (B) a tax-supported organization; or
                  (C) an Indian tribe or pueblo.
          (20) ``public airport'' means an airport used or 
        intended to be used for public purposes--
                  (A) that is under the control of a public 
                agency; and
                  (B) of which the area used or intended to be 
                used for the landing, taking off, or surface 
                maneuvering of aircraft is publicly owned.
          (21) ``public-use airport'' means--
                  (A) a public airport; or
                  (B) a privately-owned airport used or 
                intended to be used for public purposes that 
                is--
                          (i) a reliever airport; or
                          (ii) determined by the Secretary to 
                        have at least 2,500 passenger boardings 
                        each year and to receive scheduled 
                        passenger aircraft service.
          (22) ``reliever airport'' means an airport the 
        Secretary designates to relieve congestion at a 
        commercial service airport and to provide more general 
        aviation access to the overall community.
          (23) ``small hub airport'' means a commercial service 
        airport that has at least 0.05 percent but less than 
        0.25 percent of the passenger boardings.
          (24) ``sponsor'' means--
                  (A) a public agency that submits to the 
                Secretary under this subchapter an application 
                for financial assistance; and
                  (B) a private owner of a public-use airport 
                that submits to the Secretary under this 
                subchapter an application for financial 
                assistance for the airport.
          (25) ``State'' means a State of the United States, 
        the District of Columbia, Puerto Rico, the Virgin 
        Islands, American Samoa, the Northern Mariana Islands, 
        the Trust Territory of the Pacific Islands, and Guam.

Sec. 47103. National plan of integrated airport systems

  (a) General Requirements and Considerations.--The Secretary 
of Transportation shall maintain the plan for developing 
public-use airports in the United States, named ``the national 
plan of integrated airport systems''. The plan shall include 
the kind and estimated cost of eligible airport development the 
Secretary of Transportation considers necessary to provide a 
safe, efficient, and integrated system of public-use airports 
adequate to anticipate and meet the needs of civil aeronautics, 
to meet the national defense requirements of the Secretary of 
Defense, and to meet identified needs of the United States 
Postal Service. Airport development included in the plan may 
not be limited to meeting the needs of any particular classes 
or categories of public-use airports. In maintaining the plan, 
the Secretary of Transportation shall consider the needs of 
each segment of civil aviation and the relationship of [each 
airport to--] the airport system to--
          (1) the rest of the transportation [system in the 
        particular area;] system, including connection to the 
        surface transportation network; and
          (2) forecasted technological developments in 
        [aeronautics; and] aeronautics.
          [(3) forecasted developments in other modes of 
        intercity transportation.]
  (b) Specific Requirements.--In maintaining the plan, the 
Secretary of Transportation shall--
          (1) to the extent possible and as appropriate, 
        consult with departments, agencies, and 
        instrumentalities of the United States Government, with 
        public agencies, and with the aviation community; and
          [(2) consider tall structures that reduce safety or 
        airport capacity; and]
          [(3)] (2) make every reasonable effort to address the 
        needs of air cargo [operations, Short Takeoff and 
        Landing/Very Short Takeoff and Landing aircraft 
        operations,] operations and rotary wing aircraft 
        operations.
  (c) Availability of Domestic Military Airports and Airport 
Facilities.--To the extent possible, the Secretary of Defense 
shall make domestic military airports and airport facilities 
available for civil use. In advising the Secretary of 
Transportation under subsection (a) of this section, the 
Secretary of Defense shall indicate the extent to which 
domestic military airports and airport facilities are available 
for civil use.
  (d) Publication.--The Secretary of Transportation shall 
publish the [status of the] plan every 2 years.

           *       *       *       *       *       *       *


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

  (a) Project Grant Application Approval.--The Secretary of 
Transportation may approve an application under this subchapter 
for a project grant only if the Secretary is satisfied that--
          (1) the project is consistent with plans (existing at 
        the time the project is approved) of public agencies 
        authorized by the State in which the airport is located 
        to plan for the development of the area surrounding the 
        airport;
          (2) the project will contribute to carrying out this 
        subchapter;
          (3) enough money is available to pay the project 
        costs that will not be paid by the United States 
        Government under this subchapter;
          (4) the project will be completed without 
        unreasonable delay; [and]
          (5) the sponsor has authority to carry out the 
        project as [proposed.] proposed; and
          (6) if the project is for an airport that has an 
        airport master plan, the master plan addresses--
                  (A) the feasibility of solid waste recycling 
                at the airport;
                  (B) minimizing the generation of solid waste 
                at the airport;
                  (C) operation and maintenance requirements;
                  (D) the review of waste management contracts;
                  (E) the potential for cost savings or the 
                generation of revenue; and
                  (F) training and education requirements.
  (b) Airport Development Project Grant Application Approval.--
The Secretary may approve an application under this subchapter 
for an airport development project grant for an airport only if 
the Secretary is satisfied that--
          (1) the sponsor, a public agency, or the Government 
        holds good title to the areas of the airport used or 
        intended to be used for the landing, taking off, or 
        surface maneuvering of aircraft, or that good title 
        will be acquired;
          (2) the interests of the community in or near which 
        the project may be located have been given fair 
        consideration; and
          (3) the application provides touchdown zone and 
        centerline runway lighting, high intensity runway 
        lighting, or land necessary for installing approach 
        light systems that the Secretary, considering the 
        category of the airport and the kind and volume of 
        traffic using it, decides is necessary for safe and 
        efficient use of the airport by aircraft.
  (c) Environmental Requirements.--(1) The Secretary may 
approve an application under this subchapter for an airport 
development project involving the location of an airport or 
runway or a major runway extension--
          (A) only if the sponsor certifies to the Secretary 
        that--
                  (i) an opportunity for a public hearing was 
                given to consider the economic, social, and 
                environmental effects of the location and the 
                location's consistency with the objectives of 
                any planning that the community has carried 
                out;
                  (ii) the airport management board has voting 
                representation from the communities in which 
                the project is located or has advised the 
                communities that they have the right to 
                petition the Secretary about a proposed 
                project; and
                  (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; and
          (B) if the application is found to have a significant 
        adverse effect on natural resources, including fish and 
        wildlife, natural, scenic, and recreation assets, water 
        and air quality, or another factor affecting the 
        environment, only after finding that no possible and 
        prudent alternative to the project exists and that 
        every reasonable step has been taken to minimize the 
        adverse effect.
  (2) The Secretary may approve an application under this 
subchapter for an airport development project that does not 
involve the location of an airport or runway, or a major runway 
extension, at an existing airport without requiring an 
environmental impact statement related to noise for the project 
if--
          (A) completing the project would allow operations at 
        the airport involving aircraft complying with the noise 
        standards prescribed for ``stage 3'' aircraft in 
        section 36.1 of title 14, Code of Federal Regulations, 
        to replace existing operations involving aircraft that 
        do not comply with those standards; and
          (B) the project meets the other requirements under 
        this subchapter.
  (3) At the Secretary's request, the sponsor shall give the 
Secretary a copy of the transcript of any hearing held under 
paragraph (1)(A) of this subsection.
  (4) The Secretary may make a finding under paragraph (1)(B) 
of this subsection only after completely reviewing the matter. 
The review and finding must be a matter of public record.
  (d) Withholding Approval.--(1) The Secretary may withhold 
approval of an application under this subchapter for amounts 
apportioned under section 47114(c) and (e) of this title for 
violating an assurance or requirement of this subchapter only 
if--
          (A) the Secretary provides the sponsor an opportunity 
        for a hearing; and
          (B) not later than 180 days after the later of the 
        date of the application or the date the Secretary 
        discovers the noncompliance, the Secretary finds that a 
        violation has occurred.
  (2) The 180-day period may be extended by--
          (A) agreement between the Secretary and the sponsor; 
        or
          (B) the hearing officer if the officer decides an 
        extension is necessary because the sponsor did not 
        follow the schedule the officer established.
  (3) A person adversely affected by an order of the Secretary 
withholding approval may obtain review of the order by filing a 
petition in the United States Court of Appeals for the District 
of Columbia Circuit or in the court of appeals of the United 
States for the circuit in which the project is located. The 
action must be brought not later than 60 days after the order 
is served on the petitioner.
  (e) Reports Relating to Construction of Certain New Hub 
Airports.--At least 90 days prior to the approval under this 
subchapter of a project grant application for construction of a 
new hub airport that is expected to have 0.25 percent or more 
of the total annual enplanements in the United States, the 
Secretary shall submit to Congress a report analyzing the 
anticipated impact of such proposed new airport on--
          (1) the fees charged to air carriers (including 
        landing fees), and other costs that will be incurred by 
        air carriers, for using the proposed airport;
          (2) air transportation that will be provided in the 
        geographic region of the proposed airport; and
          (3) the availability and cost of providing air 
        transportation to rural areas in such geographic 
        region.
  (f) Competition Plans.--
          (1) Prohibition.--Beginning in fiscal year 2001, no 
        passenger facility fee may be approved for a covered 
        airport under section 40117 and no grant may be made 
        under this subchapter for a covered airport unless the 
        airport has submitted to the Secretary a written 
        competition plan in accordance with this subsection.
          (2) Contents.--A competition plan under this 
        subsection shall include information on the 
        availability of airport gates and related facilities, 
        leasing and sub-leasing arrangements, gate-use 
        requirements, patterns of air service, gate-assignment 
        policy, financial constraints, airport controls over 
        air-and ground-side capacity, whether the airport 
        intends to build or acquire gates that would be used as 
        common facilities, and airfare levels (as compiled by 
        the Department of Transportation) compared to other 
        large airports.
          (3) Special rule for fiscal year 2002.--This 
        subsection does not apply to any passenger facility fee 
        approved, or grant made, in fiscal year 2002 if the fee 
        or grant is to be used to improve security at a covered 
        airport.
          (4) Covered airport defined.--In this subsection, the 
        term ``covered airport'' means a commercial service 
        airport--
                  (A) that has more than .25 percent of the 
                total number of passenger boardings each year 
                at all such airports; and
                  (B) at which one or two air carriers control 
                more than 50 percent of the passenger 
                boardings.
  (g) Consultation with Secretary of Homeland Security.--The 
Secretary shall consult with the Secretary of Homeland Security 
before approving an application under this subchapter for an 
airport development project grant for activities described in 
section 47102(3)(B)(ii) only as they relate to security 
equipment or section 47102(3)(B)(x) only as they relate to 
installation of bulk explosive detection system.

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

  (a) General Written Assurances.--The Secretary of 
Transportation may approve a project grant application under 
this subchapter for an airport development project only if the 
Secretary receives written assurances, satisfactory to the 
Secretary, that--
          (1) the airport will be available for public use on 
        reasonable conditions and without unjust 
        discrimination;
          (2) air carriers making similar use of the airport 
        will be subject to substantially comparable charges--
                  (A) for facilities directly and substantially 
                related to providing air transportation; and
                  (B) regulations and conditions, except for 
                differences based on reasonable 
                classifications, such as between--
                          (i) tenants and nontenants; and
                          (ii) signatory and nonsignatory 
                        carriers;
          (3) the airport operator will not withhold 
        unreasonably the classification or status of tenant or 
        signatory from an air carrier that assumes obligations 
        substantially similar to those already imposed on air 
        carriers of that classification or status;
          (4) a person providing, or intending to provide, 
        aeronautical services to the public will not be given 
        an exclusive right to use the airport, with a right 
        given to only one fixed-base operator to provide 
        services at an airport deemed not to be an exclusive 
        right if--
                  (A) the right would be unreasonably costly, 
                burdensome, or impractical for more than one 
                fixed-base operator to provide the services; 
                and
                  (B) allowing more than one fixed-base 
                operator to provide the services would require 
                reducing the space leased under an existing 
                agreement between the one fixed-base operator 
                and the airport owner or operator;
          (5) fixed-base operators similarly using the airport 
        will be subject to the same charges;
          (6) an air carrier using the airport may service 
        itself or use any fixed-base operator allowed by the 
        airport operator to service any carrier at the airport;
          (7) the airport and facilities on or connected with 
        the airport will be operated and maintained suitably, 
        with consideration given to climatic and flood 
        conditions;
          (8) a proposal to close the airport temporarily for a 
        nonaeronautical purpose must first be approved by the 
        Secretary;
          (9) appropriate action will be taken to ensure that 
        terminal airspace required to protect instrument and 
        visual operations to the airport (including operations 
        at established minimum flight altitudes) will be 
        cleared and protected by mitigating existing, and 
        preventing future, airport hazards;
          (10) appropriate action, including the adoption of 
        zoning laws, has been or will be taken to the extent 
        reasonable to restrict the use of land next to or near 
        the airport to uses that are compatible with normal 
        airport operations;
          (11) each of the airport's facilities developed with 
        financial assistance from the United States Government 
        and each of the airport's facilities usable for the 
        landing and taking off of aircraft always will be 
        available without charge for use by Government aircraft 
        in common with other aircraft, except that if the use 
        is substantial, the Government may be charged a 
        reasonable share, proportionate to the use, of the cost 
        of operating and maintaining the facility used;
          (12) the airport owner or operator will provide, 
        without charge to the Government, property interests of 
        the sponsor in land or water areas or buildings that 
        the Secretary decides are desirable for, and that will 
        be used for, constructing at Government expense, 
        facilities for carrying out activities related to air 
        traffic control or navigation;
          (13) the airport owner or operator will maintain a 
        schedule of charges for use of facilities and services 
        at the airport--
                  (A) that will make the airport as self-
                sustaining as possible under the circumstances 
                existing at the airport, including volume of 
                traffic and economy of collection; and
                  (B) without including in the rate base used 
                for the charges the Government's share of costs 
                for any project for which a grant is made under 
                this subchapter or was made under the Federal 
                Airport Act or the Airport and Airway 
                Development Act of 1970;
          (14) the project accounts and records will be kept 
        using a standard system of accounting that the 
        Secretary, after consulting with appropriate public 
        agencies, prescribes;
          (15) the airport owner or operator will submit any 
        annual or special airport financial and operations 
        reports to the Secretary that the Secretary reasonably 
        requests and make such reports available to the public;
          (16) the airport owner or operator will maintain a 
        current layout plan of the airport that meets the 
        following requirements:
                  (A) the plan will be in a form the Secretary 
                prescribes;
                  (B) the Secretary will approve the plan and 
                any revision or modification before the plan, 
                revision, or modification takes effect;
                  (C) the owner or operator will not make or 
                allow any alteration in the airport or any of 
                its facilities if the alteration does not 
                comply with the plan the Secretary approves, 
                and the Secretary is of the opinion that the 
                alteration may affect adversely the safety, 
                utility, or efficiency of the airport; and
                  (D) when an alteration in the airport or its 
                facility is made that does not conform to the 
                approved plan and that the Secretary decides 
                adversely affects the safety, utility, or 
                efficiency of any property on or off the 
                airport that is owned, leased, or financed by 
                the Government, the owner or operator, if 
                requested by the Secretary, will--
                          (i) eliminate the adverse effect in a 
                        way the Secretary approves; or
                          (ii) bear all cost of relocating the 
                        property or its replacement to a site 
                        acceptable to the Secretary and of 
                        restoring the property or its 
                        replacement to the level of safety, 
                        utility, efficiency, and cost of 
                        operation that existed before the 
                        alteration was [made;] made, except 
                        that, if there is a change in airport 
                        design standards that the Secretary 
                        determines is beyond the owner or 
                        operator's control that requires the 
                        relocation or replacement of an 
                        existing airport facility, the 
                        Secretary, upon the request of the 
                        owner or operator, may grant funds 
                        available under section 47114 to pay 
                        the cost of relocating or replacing 
                        such facility;
          (17) each contract and subcontract for program 
        management, construction management, planning studies, 
        feasibility studies, architectural services, 
        preliminary engineering, design, engineering, 
        surveying, mapping, and related services will be 
        awarded in the same way that a contract for 
        architectural and engineering services is negotiated 
        under chapter 11 of title 40 or an equivalent 
        qualifications-based requirement prescribed for or by 
        the sponsor;
          (18) the airport and each airport record will be 
        available for inspection by the Secretary on reasonable 
        request, and a report of the airport budget will be 
        available to the public at reasonable times and places;
          (19) the airport owner or operator will submit to the 
        Secretary and make available to the public an annual 
        report listing in detail--
                  (A) all amounts paid by the airport to any 
                other unit of government and the purposes for 
                which each such payment was made; and
                  (B) all services and property provided to 
                other units of government and the amount of 
                compensation received for provision of each 
                such service and property;
          (20) the airport owner or operator will permit, to 
        the maximum extent practicable, intercity buses or 
        other modes of transportation to have access to the 
        airport, but the sponsor does not have any obligation 
        under this paragraph, or because of it, to fund special 
        facilities for intercity bus service or for other modes 
        of transportation; and
          (21) if the airport owner or operator and a person 
        who owns an aircraft agree that a hangar is to be 
        constructed at the airport for the aircraft at the 
        aircraft owner's expense, the airport owner or operator 
        will grant to the aircraft owner for the hangar a long-
        term lease that is subject to such terms and conditions 
        on the hangar as the airport owner or operator may 
        impose.
  (b) Written Assurances on Use of Revenue.--(1) The Secretary 
of Transportation may approve a project grant application under 
this subchapter for an airport development project only if the 
Secretary receives written assurances, satisfactory to the 
Secretary, that local taxes on aviation fuel (except taxes in 
effect on December 30, 1987) and the revenues generated by a 
public airport will be expended for the capital or operating 
costs of--
          (A) the airport;
          (B) the local airport system; or
          (C) other local facilities owned or operated by the 
        airport owner or operator and directly and 
        substantially related to the air transportation of 
        passengers or property.
  (2) Paragraph (1) of this subsection does not apply if a 
provision enacted not later than September 2, 1982, in a law 
controlling financing by the airport owner or operator, or a 
covenant or assurance in a debt obligation issued not later 
than September 2, 1982, by the owner or operator, provides that 
the revenues, including local taxes on aviation fuel at public 
airports, from any of the facilities of the owner or operator, 
including the airport, be used to support not only the airport 
but also the general debt obligations or other facilities of 
the owner or operator.
  (3) This subsection does not prevent the use of a State tax 
on aviation fuel to support a State aviation program or the use 
of airport revenue on or off the airport for a noise mitigation 
purpose.
  (c) Written Assurances on Acquiring Land.--(1) In this 
subsection, land is needed for an airport purpose (except a 
noise compatibility purpose) if--
          (A)(i) the land may be needed for an aeronautical 
        purpose (including runway protection zone) or serves as 
        noise buffer land; and
          (ii) revenue from interim uses of the land 
        contributes to the financial self-sufficiency of the 
        airport; and
          (B) for land purchased with a grant the owner or 
        operator received not later than December 30, 1987, the 
        Secretary of Transportation or the department, agency, 
        or instrumentality of the Government that made the 
        grant was notified by the owner or operator of the use 
        of the land and did not object to the use and the land 
        is still being used for that purpose.
  (2) The Secretary of Transportation may approve an 
application under this subchapter for an airport development 
project grant only if the Secretary receives written 
assurances, satisfactory to the Secretary, that if an airport 
owner or operator has received or will receive a grant for 
acquiring land and--
          (A) if the land was or will be acquired for a noise 
        compatibility purpose--
                  (i) the owner or operator will dispose of the 
                land at fair market value at the earliest 
                practicable time after the land no longer is 
                needed for a noise compatibility [purpose;] 
                purpose, which includes serving as noise buffer 
                land;
                  (ii) the disposition will be subject to 
                retaining or reserving an interest in the land 
                necessary to ensure that the land will be used 
                in a way that is compatible with noise levels 
                associated with operating the airport; and
                  (iii) the part of the proceeds from disposing 
                of the land that is proportional to the 
                Government's share of the cost of acquiring the 
                land will be paid to the Secretary for deposit 
                in the Airport and Airway Trust Fund 
                established under section 9502 of the Internal 
                Revenue Code of 1986 (26 U.S.C. 9502) or, as 
                the Secretary prescribes, reinvested in an 
                approved noise compatibility project, 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; or
          (B) if the land was or will be acquired for an 
        airport purpose (except a noise compatibility 
        purpose)--
                  (i) the owner or operator, when the land no 
                longer is needed for an airport purpose, will 
                dispose of the land at fair market value or 
                make available to the Secretary an amount equal 
                to the Government's proportional share of the 
                fair market value;
                  (ii) the disposition will be subject to 
                retaining or reserving an interest in the land 
                necessary to ensure that the land will be used 
                in a way that is compatible with noise levels 
                associated with operating the airport; and
                  (iii) the part of the proceeds from disposing 
                of the land that is proportional to the 
                Government's share of the cost of acquiring the 
                land will be reinvested, on application to the 
                Secretary, in another eligible airport 
                development project the Secretary approves 
                under this subchapter or [paid to the Secretary 
                for deposit in the Fund if another eligible 
                project does not exist.] reinvested in another 
                project at the airport or transferred to 
                another airport as the Secretary prescribes.
  (3) In approving the reinvestment or transfer of proceeds 
under paragraph (2)(C)(iii), the Secretary shall give 
preference, in descending order, to--
          (i) reinvestment in an approved noise compatibility 
        project;
          (ii) reinvestment in an approved project that is 
        eligible for funding under section 47117(e);
          (iii) reinvestment in an airport development project 
        that is eligible for funding under section 47114, 
        47115, or 47117 and meets the requirements of this 
        chapter;
          (iv) transfer to the sponsor of another public 
        airport to be reinvested in an approved noise 
        compatibility project at such airport; and
          (v) payment to the Secretary for deposit in the 
        Airport and Airway Trust Fund established under section 
        9502 of the Internal Revenue Code of 1986 (26 U.S.C. 
        9502).
  [(3)] (4) Proceeds referred to in paragraph (2)(A)(iii) and 
(B)(iii) of this subsection and deposited in the Airport and 
Airway Trust Fund are available as provided in subsection (f) 
of this section.
  (d) Assurances of Continuation as Public-Use Airport.--The 
Secretary of Transportation may approve an application under 
this subchapter for an airport development project grant for a 
privately owned public-use airport only if the Secretary 
receives appropriate assurances that the airport will continue 
to function as a public-use airport during the economic life 
(that must be at least 10 years) of any facility at the airport 
that was developed with Government financial assistance under 
this subchapter.
  (e) Written Assurances of Opportunities for Small Business 
Concerns.--(1) The Secretary of Transportation may approve a 
project grant application under this subchapter for an airport 
development project only if the Secretary receives written 
assurances, satisfactory to the Secretary, that the airport 
owner or operator will take necessary action to ensure, to the 
maximum extent practicable, that at least 10 percent of all 
businesses at the airport selling consumer products or 
providing consumer services to the public are small business 
concerns (as defined by regulations of the Secretary) owned and 
controlled by a socially and economically disadvantaged 
individual (as defined in section 47113(a) of this title) or 
qualified HUBZone small business concerns (as defined in 
section 3(p) of the Small Business Act).
  (2) An airport owner or operator may meet the percentage goal 
of paragraph (1) of this subsection by including any business 
operated through a management contract or subcontract. The 
dollar amount of a management contract or subcontract with a 
disadvantaged business enterprise shall be added to the total 
participation by disadvantaged business enterprises in airport 
concessions and to the base from which the airport's percentage 
goal is calculated. The dollar amount of a management contract 
or subcontract with a non-disadvantaged business enterprise and 
the gross revenue of business activities to which the 
management contract or subcontract pertains may not be added to 
this base.
  (3) Except as provided in paragraph (4) of this subsection, 
an airport owner or operator may meet the percentage goal of 
paragraph (1) of this subsection by including the purchase from 
disadvantaged business enterprises of goods and services used 
in businesses conducted at the airport, but the owner or 
operator and the businesses conducted at the airport shall make 
good faith efforts to explore all available options to achieve, 
to the maximum extent practicable, compliance with the goal 
through direct ownership arrangements, including joint ventures 
and franchises.
  (4)(A) In complying with paragraph (1) of this subsection, an 
airport owner or operator shall include the revenues of car 
rental firms at the airport in the base from which the 
percentage goal in paragraph (1) is calculated.
  (B) An airport owner or operator may require a car rental 
firm to meet a requirement under paragraph (1) of this 
subsection by purchasing or leasing goods or services from a 
disadvantaged business enterprise. If an owner or operator 
requires such a purchase or lease, a car rental firm shall be 
permitted to meet the requirement by including purchases or 
leases of vehicles from any vendor that qualifies as a small 
business concern owned and controlled by a socially and 
economically disadvantaged individual or as a qualified HUBZone 
small business concern (as defined in section 3(p) of the Small 
Business Act).
  (C) This subsection does not require a car rental firm to 
change its corporate structure to provide for direct ownership 
arrangements to meet the requirements of this subsection.
  (5) This subsection does not preempt--
          (A) a State or local law, regulation, or policy 
        enacted by the governing body of an airport owner or 
        operator; or
          (B) the authority of a State or local government or 
        airport owner or operator to adopt or enforce a law, 
        regulation, or policy related to disadvantaged business 
        enterprises.
  (6) An airport owner or operator may provide opportunities 
for a small business concern owned and controlled by a socially 
and economically disadvantaged individual or a qualified 
HUBZone small business concern (as defined in section 3(p) of 
the Small Business Act) to participate through direct 
contractual agreement with that concern.
  (7) An air carrier that provides passenger or property-
carrying services or another business that conducts 
aeronautical activities at an airport may not be included in 
the percentage goal of paragraph (1) of this subsection for 
participation of small business concerns at the airport.
                  (8) Mandatory training program for airport 
                concessions.--
                          (A) In general.--Not later than one 
                        year after the date of enactment of the 
                        FAA Air Transportation Modernization 
                        and Safety Improvement Act, the 
                        Secretary shall establish a mandatory 
                        training program for persons described 
                        in subparagraph (C) on the 
                        certification of whether a small 
                        business concern in airport concessions 
                        qualifies as a small business concern 
                        owned and controlled by a socially and 
                        economically disadvantaged individual 
                        for purposes of paragraph (1).
                          (B) Implementation.--The training 
                        program may be implemented by one or 
                        more private entities approved by the 
                        Secretary.
                          (C) Participants.--A person referred 
                        to in paragraph (1) is an official or 
                        agent of an airport owner or operator 
                        who is required to provide a written 
                        assurance under paragraph (1) that the 
                        airport owner or operator will meet the 
                        percentage goal of paragraph (1) or who 
                        is responsible for determining whether 
                        or not a small business concern in 
                        airport concessions qualifies as a 
                        small business concern owned and 
                        controlled by a socially and 
                        economically disadvantaged individual 
                        for purposes of paragraph (1).
                          (D) Authorization of 
                        appropriations.--There are authorized 
                        to be appropriated to the Secretary 
                        such sums as may be necessary to carry 
                        out this paragraph.
  [(8)] (9) Not later than April 29, 1993, the Secretary of 
Transportation shall prescribe regulations to carry out this 
subsection.
  (f) Availability of Amounts.--An amount deposited in the 
Airport and Airway Trust Fund under--
          (1) subsection (c)(2)(A)(iii) of this section is 
        available to the Secretary of Transportation to make a 
        grant for airport development or airport planning under 
        section 47104 of this title;
          (2) subsection (c)(2)(B)(iii) of this section is 
        available to the Secretary--
                  (A) to make a grant for a purpose described 
                in section 47115(b) of this title; and
                  (B) for use under section 47114(d)(2) of this 
                title at another airport in the State in which 
                the land was disposed of under subsection 
                (c)(2)(B)(ii) of this section; and
          (3) subsection (c)(2)(B)(iii) of this section is in 
        addition to an amount made available to the Secretary 
        under section 48103 of this title and not subject to 
        apportionment under section 47114 of this title.
  (g) Ensuring Compliance.--(1) To ensure compliance with this 
section, the Secretary of Transportation--
          (A) shall prescribe requirements for sponsors that 
        the Secretary considers necessary; and
          (B) may make a contract with a public agency.
  (2) The Secretary of Transportation may approve an 
application for a project grant only if the Secretary is 
satisfied that the requirements prescribed under paragraph 
(1)(A) of this subsection have been or will be met.
  (h) Modifying Assurances and Requiring Compliance With 
Additional Assurances.--
          (1) In general.--Subject to paragraph (2), before 
        modifying an assurance required of a person receiving a 
        grant under this subchapter and in effect after 
        December 29, 1987, or to require compliance with an 
        additional assurance from the person, the Secretary of 
        Transportation must--
                  (A) publish notice of the proposed 
                modification in the Federal Register; and
                  (B) provide an opportunity for comment on the 
                proposal.
          (2) Public notice before waiver of aeronautical land-
        use assurance.--Before modifying an assurance under 
        subsection (c)(2)(B) that requires any property to be 
        used for an aeronautical purpose, the Secretary must 
        provide notice to the public not less than 30 days 
        before making such modification.
  (i) Relief From Obligation To Provide Free Space.--When a 
sponsor provides a property interest in a land or water area or 
a building that the Secretary of Transportation uses to 
construct a facility at Government expense, the Secretary may 
relieve the sponsor from an obligation in a contract made under 
this chapter, the Airport and Airway Development Act of 1970, 
or the Federal Airport Act to provide free space to the 
Government in an airport building, to the extent the Secretary 
finds that the free space no longer is needed to carry out 
activities related to air traffic control or navigation.
  (j) Use of Revenue in Hawaii.--(1) In this subsection--
          (A) ``duty-free merchandise'' and ``duty-free sales 
        enterprise'' have the same meanings given those terms 
        in section 555(b)(8) of the Tariff Act of 1930 (19 
        U.S.C. 1555(b)(8)).
          (B) ``highway'' and ``Federal-aid system'' have the 
        same meanings given those terms in section 101(a) of 
        title 23.
  (2) Notwithstanding subsection (b)(1) of this section, Hawaii 
may use, for a project for construction or reconstruction of a 
highway on a Federal-aid system that is not more than 10 miles 
by road from an airport and that will facilitate access to the 
airport, revenue from the sales at off-airport locations in 
Hawaii of duty-free merchandise under a contract between Hawaii 
and a duty-free sales enterprise. However, the revenue 
resulting during a Hawaiian fiscal year may be used only if the 
amount of the revenue, plus amounts Hawaii receives in the 
fiscal year from all other sources for costs Hawaii incurs for 
operating all airports it operates and for debt service related 
to capital projects for the airports (including interest and 
amortization of principal costs), is more than 150 percent of 
the projected costs for the fiscal year.
  (3)(A) Revenue from sales referred to in paragraph (2) of 
this subsection in a Hawaiian fiscal year that Hawaii may use 
may not be more than the amount that is greater than 150 
percent as determined under paragraph (2).
  (B) The maximum amount of revenue Hawaii may use under 
paragraph (2) of this subsection is $250,000,000.
  (4) If a fee imposed or collected for rent, landing, or 
service from an aircraft operator by an airport operated by 
Hawaii is increased during the period from May 4, 1990, through 
December 31, 1994, by more than the percentage change in the 
Consumer Price Index of All Urban Consumers for Honolulu, 
Hawaii, that the Secretary of Labor publishes during that 
period and if revenue derived from the fee increases because 
the fee increased, the amount under paragraph (3)(B) of this 
subsection shall be reduced by the amount of the projected 
revenue increase in the period less the part of the increase 
attributable to changes in the Index in the period.
  (5) Hawaii shall determine costs, revenue, and projected 
revenue increases referred to in this subsection and shall 
submit the determinations to the Secretary of Transportation. A 
determination is approved unless the Secretary disapproves it 
not later than 30 days after it is submitted.
  (6) Hawaii is not eligible for a grant under section 47115 of 
this title in a fiscal year in which Hawaii uses under 
paragraph (2) of this subsection revenue from sales referred to 
in paragraph (2). Hawaii shall repay amounts it receives in a 
fiscal year under a grant it is not eligible to receive because 
of this paragraph to the Secretary of Transportation for 
deposit in the discretionary fund established under section 
47115.
  (7)(A) This subsection applies only to revenue from sales 
referred to in paragraph (2) of this subsection from May 5, 
1990, through December 30, 1994, and to amounts in the Airport 
Revenue Fund of Hawaii that are attributable to revenue before 
May 4, 1990, on sales referred to in paragraph (2).
  (B) Revenue from sales referred to in paragraph (2) of this 
subsection from May 5, 1990, through December 30, 1994, may be 
used under paragraph (2) in any Hawaiian fiscal year, including 
a Hawaiian fiscal year beginning after December 31, 1994.
  (k) Annual Summaries of Financial Reports.--The Secretary 
shall provide to the Committee on Commerce, Science, and 
Transportation of the Senate and the Committee on 
Transportation and Infrastructure of the House of 
Representatives an annual summary of the reports submitted to 
the Secretary under subsection (a)(19) of this section and 
under section 111(b) of the Federal Aviation Administration 
Authorization Act of 1994.
  (l) Policies and Procedures To Ensure Enforcement Against 
Illegal Diversion of Airport Revenue.--
          (1) In general.--Not later than 90 days after August 
        23, 1994, the Secretary of Transportation shall 
        establish policies and procedures that will assure the 
        prompt and effective enforcement of subsections (a)(13) 
        and (b) of this section and grant assurances made under 
        such subsections. Such policies and procedures shall 
        recognize the exemption provision in subsection (b)(2) 
        of this section and shall respond to the information 
        contained in the reports of the Inspector General of 
        the Department of Transportation on airport revenue 
        diversion and such other relevant information as the 
        Secretary may by law consider.
          (2) Revenue diversion.--Policies and procedures to be 
        established pursuant to paragraph (1) of this 
        subsection shall prohibit, at a minimum, the diversion 
        of airport revenues (except as authorized under 
        subsection (b) of this section) through--
                  (A) direct payments or indirect payments, 
                other than payments reflecting the value of 
                services and facilities provided to the 
                airport;
                  (B) use of airport revenues for general 
                economic development, marketing, and 
                promotional activities unrelated to airports or 
                airport systems;
                  (C) payments in lieu of taxes or other 
                assessments that exceed the value of services 
                provided; or
                  (D) payments to compensate nonsponsoring 
                governmental bodies for lost tax revenues 
                exceeding stated tax rates.
          (3) Efforts to be self-sustaining.--With respect to 
        subsection (a)(13) of this section, policies and 
        procedures to be established pursuant to paragraph (1) 
        of this subsection shall take into account, at a 
        minimum, whether owners and operators of airports, when 
        entering into new or revised agreements or otherwise 
        establishing rates, charges, and fees, have undertaken 
        reasonable efforts to make their particular airports as 
        self-sustaining as possible under the circumstances 
        existing at such airports.
          (4) Administrative safeguards.--Policies and 
        procedures to be established pursuant to paragraph (1) 
        shall mandate internal controls, auditing requirements, 
        and increased levels of Department of Transportation 
        personnel sufficient to respond fully and promptly to 
        complaints received regarding possible violations of 
        subsections (a)(13) and (b) of this section and grant 
        assurances made under such subsections and to alert the 
        Secretary to such possible violations.
          (5) Statute of limitations.--In addition to the 
        statute of limitations specified in subsection (n)(7), 
        with respect to project grants made under this 
        chapter--
                  (A) any request by a sponsor or any other 
                governmental entity to any airport for 
                additional payments for services conducted off 
                of the airport or for reimbursement for capital 
                contributions or operating expenses shall be 
                filed not later than 6 years after the date on 
                which the expense is incurred; and
                  (B) any amount of airport funds that are used 
                to make a payment or reimbursement as described 
                in subparagraph (A) after the date specified in 
                that subparagraph shall be considered to be an 
                illegal diversion of airport revenues that is 
                subject to subsection (n).
  (m) Audit Certification.--
          (1) In general.--The Secretary of Transportation, 
        acting through the Administrator of the Federal 
        Aviation Administration, shall include a provision in 
        the compliance supplement provisions to require a 
        recipient of a project grant (or any other recipient of 
        Federal financial assistance that is provided for an 
        airport) to include as part of an annual audit 
        conducted under sections 7501 through 7505 of title 31, 
        a review concerning the funding activities with respect 
        to an airport that is the subject of the project grant 
        (or other Federal financial assistance) and the 
        sponsors, owners, or operators (or other recipients) 
        involved.
          (2) Content of review.--A review conducted under 
        paragraph (1) shall provide reasonable assurances that 
        funds paid or transferred to sponsors are paid or 
        transferred in a manner consistent with the applicable 
        requirements of this chapter and any other applicable 
        provision of law (including regulations promulgated by 
        the Secretary or the Administrator).
  (n) Recovery of Illegally Diverted Funds.--
          (1) In general.--Not later than 180 days after the 
        issuance of an audit or any other report that 
        identifies an illegal diversion of airport revenues (as 
        determined under subsections (b) and (l) and section 
        47133), the Secretary, acting through the 
        Administrator, shall--
                  (A) review the audit or report;
                  (B) perform appropriate factfinding; and
                  (C) conduct a hearing and render a final 
                determination concerning whether the illegal 
                diversion of airport revenues asserted in the 
                audit or report occurred.
          (2) Notification.--Upon making such a finding, the 
        Secretary, acting through the Administrator, shall 
        provide written notification to the sponsor and the 
        airport of--
                  (A) the finding; and
                  (B) the obligations of the sponsor to 
                reimburse the airport involved under this 
                paragraph.
          (3) Administrative action.--The Secretary may 
        withhold any amount from funds that would otherwise be 
        made available to the sponsor, including funds that 
        would otherwise be made available to a State, 
        municipality, or political subdivision thereof 
        (including any multimodal transportation agency or 
        transit authority of which the sponsor is a member 
        entity) as part of an apportionment or grant made 
        available pursuant to this title, if the sponsor--
                  (A) receives notification that the sponsor is 
                required to reimburse an airport; and
                  (B) has had an opportunity to reimburse the 
                airport, but has failed to do so.
          (4) Civil action.--If a sponsor fails to pay an 
        amount specified under paragraph (3) during the 180-day 
        period beginning on the date of notification and the 
        Secretary is unable to withhold a sufficient amount 
        under paragraph (3), the Secretary, acting through the 
        Administrator, may initiate a civil action under which 
        the sponsor shall be liable for civil penalty in an 
        amount equal to the illegal diversion in question plus 
        interest (as determined under subsection (o)).
          (5) Disposition of penalties.--
                  (A) Amounts withheld.--The Secretary or the 
                Administrator shall transfer any amounts 
                withheld under paragraph (3) to the Airport and 
                Airway Trust Fund.
                  (B) Civil penalties.--With respect to any 
                amount collected by a court in a civil action 
                under paragraph (4), the court shall cause to 
                be transferred to the Airport and Airway Trust 
                Fund any amount collected as a civil penalty 
                under paragraph (4).
          (6) Reimbursement.--The Secretary, acting through the 
        Administrator, shall, as soon as practicable after any 
        amount is collected from a sponsor under paragraph (4), 
        cause to be transferred from the Airport and Airway 
        Trust Fund to an airport affected by a diversion that 
        is the subject of a civil action under paragraph (4), 
        reimbursement in an amount equal to the amount that has 
        been collected from the sponsor under paragraph (4) 
        (including any amount of interest calculated under 
        subsection (o)).
          (7) Statute of limitations.--No person may bring an 
        action for the recovery of funds illegally diverted in 
        violation of this section (as determined under 
        subsections (b) and (l)) or section 47133 after the 
        date that is 6 years after the date on which the 
        diversion occurred.
  (o) Interest.--
          (1) In general.--Except as provided in paragraph (2), 
        the Secretary, acting through the Administrator, shall 
        charge a minimum annual rate of interest on the amount 
        of any illegal diversion of revenues referred to in 
        subsection (n) in an amount equal to the average 
        investment interest rate for tax and loan accounts of 
        the Department of the Treasury (as determined by the 
        Secretary of the Treasury) for the applicable calendar 
        year, rounded to the nearest whole percentage point.
          (2) Adjustment of interest rates.--If, with respect 
        to a calendar quarter, the average investment interest 
        rate for tax and loan accounts of the Department of the 
        Treasury exceeds the average investment interest rate 
        for the immediately preceding calendar quarter, rounded 
        to the nearest whole percentage point, the Secretary of 
        the Treasury may adjust the interest rate charged under 
        this subsection in a manner that reflects that change.
          (3) Accrual.--Interest assessed under subsection (n) 
        shall accrue from the date of the actual illegal 
        diversion of revenues referred to in subsection (n).
          (4) Determination of applicable rate.--The applicable 
        rate of interest charged under paragraph (1) shall--
                  (A) be the rate in effect on the date on 
                which interest begins to accrue under paragraph 
                (3); and
                  (B) remain at a rate fixed under subparagraph 
                (A) during the duration of the indebtedness.
  (p) Payment by Airport to Sponsor.--If, in the course of an 
audit or other review conducted under this section, the 
Secretary or the Administrator determines that an airport owes 
a sponsor funds as a result of activities conducted by the 
sponsor or expenditures by the sponsor for the benefit of the 
airport, interest on that amount shall be determined in the 
same manner as provided in paragraphs (1) through (4) of 
subsection (o), except that the amount of any interest assessed 
under this subsection shall be determined from the date on 
which the Secretary or the Administrator makes that 
determination.
  (q) Notwithstanding any written assurances prescribed in 
subsections (a) through (p), a general aviation airport with 
more than 300,000 annual operations may be exempt from having 
to accept scheduled passenger air carrier service, provided 
that the following conditions are met:
          (1) No scheduled passenger air carrier has provided 
        service at the airport within 5 years prior to January 
        1, 2002.
          (2) The airport is located within or underneath the 
        Class B airspace of an airport that maintains an 
        airport operating certificate pursuant to section 44706 
        of title 49.
          (3) The certificated airport operating under section 
        44706 of title 49 does not contribute to significant 
        passenger delays as defined by DOT/FAA in the ``Airport 
        Capacity Benchmark Report 2001''.
  (r) An airport that meets the conditions of subsections 
(q)(1) through (3) is not subject to section 47524 of title 49 
with respect to a prohibition on all scheduled passenger 
service.
  (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, 2009.]

           *       *       *       *       *       *       *


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

  (a) General.--Except as provided in [subsection (b) or 
subsection (c)] subsection (b), (c), or (e) of this section, 
the United States Government's share of allowable project costs 
is--
          (1) 75 percent for a project at a primary airport 
        having at least .25 percent of the total number of 
        passenger boardings each year at all commercial service 
        airports;
          (2) not more than 90 percent for a project funded by 
        a grant issued to and administered by a State under 
        section 47128, relating to the State block grant 
        program;
          (3) 90 percent for a project at any other airport;
          (4) 70 percent for a project funded by the 
        Administrator from the discretionary fund under section 
        47115 at an airport receiving an exemption under 
        section 47134; and
          (5) for fiscal year 2002, 100 percent for a project 
        described in section 47102(3)(J), 47102(3)(K), or 
        47102(3)(L).
  (b) Increased Government Share.--If, under subsection (a) of 
this section, the Government's share of allowable costs of a 
project 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, is less than the share applied on June 30, 1975, 
under section 17(b) of the Airport and Airway Development Act 
of 1970, the Government's share under subsection (a) of this 
section shall be increased by the lesser of--
          (1) 25 percent;
          (2) one-half of the percentage that the area of 
        unappropriated and unreserved public lands and 
        nontaxable Indian lands in the State is of the total 
        area of the State; or
          (3) the percentage necessary to increase the 
        Government's share to the percentage that applied on 
        June 30, 1975, under section 17(b) of the Act.
  (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).
  (d) Special Rule for Privately Owned Reliever Airports.--If a 
privately owned reliever airport contributes any lands, 
easements, or rights-of-way to carry out a project under this 
subchapter, the current fair market value of such lands, 
easements, or rights-of-way shall be credited toward the non-
Federal share of allowable project costs.
  (e) Special Rule for Transition From Small Hub to Medium Hub 
Status.--If the status of a small hub primary airport changes 
to a medium hub primary airport, the United States Government's 
share of allowable project costs for the airport may not exceed 
95 percent for 2 fiscal years following such change in hub 
status.

Sec. 47110. Allowable project costs

  (a) General Authority.--Except as provided in section 47111 
of this title, the United States Government may pay or be 
obligated to pay, from amounts appropriated to carry out this 
subchapter, a cost incurred in carrying out a project under 
this subchapter only if the Secretary of Transportation decides 
the cost is allowable.
  (b) Allowable Cost Standards.--A project cost is allowable--
          (1) if the cost necessarily is incurred in carrying 
        out the project in compliance with the grant agreement 
        made for the project under this subchapter, including 
        any cost a sponsor incurs related to an audit the 
        Secretary requires under section 47121(b) or (d) of 
        this title and any cost of moving a Federal facility 
        impeding the project if the rebuilt facility is of an 
        equivalent size and type;
          (2)(A) if the cost is incurred after the grant 
        agreement is executed and is for airport development or 
        airport planning carried out after the grant agreement 
        is executed;
          (B) if the cost is incurred after June 1, 1989, by 
        the airport operator (regardless of when the grant 
        agreement is executed) as part of a Government-approved 
        noise compatability program (including project 
        formulation costs) and is consistent with all 
        applicable statutory and administrative requirements;
          (C) if the Government's share is paid only with 
        amounts apportioned under paragraphs (1) and (2) of 
        section 47114(c) or section 47114(d)(3)(A) and if the 
        cost is incurred--
                  (i) after September 30, 1996;
                  (ii) before a grant agreement is executed for 
                the project; and
                  (iii) in accordance with an airport layout 
                plan approved by the Secretary and with all 
                statutory and administrative requirements that 
                would have been applicable to the project if 
                the project had been carried out after the 
                grant agreement had been executed; or
          (D) if the cost is incurred after September 11, 2001, 
        for a project described in section 47102(3)(J), 
        47102(3)(K), or 47102(3)(L) and shall not depend upon 
        the date of execution of a grant agreement made under 
        this subchapter;
          (3) to the extent the cost is reasonable in amount;
          (4) if the cost is not incurred in a project for 
        airport development or airport planning for which other 
        Government assistance has been granted;
          (5) if the total costs allowed for the project are 
        not more than the amount stated in the grant agreement 
        as the maximum the Government will pay (except as 
        provided in section 47108(b) of this title); and
          (6) 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.
  (c) Certain Prior Costs as Allowable Costs.--The Secretary 
may decide that a project cost under subsection (b)(2)(A) of 
this section incurred after May 13, 1946, and before the date 
the grant agreement is executed is allowable if it is--
          (1) necessarily incurred in formulating an airport 
        development project, including costs incurred for field 
        surveys, plans and specifications, property interests 
        in land or airspace, and administration or other 
        incidental items that would not have been incurred 
        except for the project; [or]
          (2) necessarily and directly incurred in developing 
        the work scope of an airport planning [project.] 
        project; or
          (3) necessarily incurred in anticipation of severe 
        weather.
  [(d) Terminal Development Costs.--(1) The Secretary may 
decide that the cost of terminal development (including multi-
modal terminal development) in a nonrevenue-producing public-
use area of a commercial service airport is allowable for an 
airport development project at the airport--
          [(A) if the sponsor certifies that the airport, on 
        the date the grant application is submitted to the 
        Secretary, has--
                  [(i) all the safety equipment required for 
                certification of the airport under section 
                44706 of this title;
                  [(ii) all the security equipment required by 
                regulation; and
                  [(iii) provided for access, to the area of 
                the airport for passengers for boarding or 
                exiting aircraft, to those passengers boarding 
                or exiting aircraft, except air carrier 
                aircraft;
          [(B) if the cost is directly related to moving 
        passengers and baggage in air commerce within the 
        airport, including vehicles for moving passengers 
        between terminal facilities and between terminal 
        facilities and aircraft; and
          [(C) under terms necessary to protect the interests 
        of the Government.
  [(2) In making a decision under paragraph (1) of this 
subsection, the Secretary may approve as allowable costs the 
expenses of terminal development in a revenue-producing area 
and construction, reconstruction, repair, and improvement in a 
nonrevenue-producing parking lot if--
          [(A) except as provided in section 47108(e)(3), the 
        airport does not have more than .05 percent of the 
        total annual passenger boardings in the United States; 
        and
          [(B) the sponsor certifies that any needed airport 
        development project affecting safety, security, or 
        capacity will not be deferred because of the 
        Secretary's approval.]
  (d) Relocation of Airport-Owned Facilities.--The Secretary 
may determine that the costs of relocating or replacing an 
airport-owned facility are allowable for an airport development 
project at an airport only if--
          (1) the Government's share of such costs is paid with 
        funds apportioned to the airport sponsor under sections 
        47114(c)(1) or 47114(d)(2);
          (2) the Secretary determines that the relocation or 
        replacement is required due to a change in the 
        Secretary's design standards; and
          (3) the Secretary determines that the change is 
        beyond the control of the airport sponsor.
  (e) Letters of Intent.--(1) The Secretary may issue a letter 
of intent to the sponsor stating an intention to obligate from 
future budget authority an amount, not more than the 
Government's share of allowable project costs, for an airport 
development project (including costs of formulating the 
project) at a primary or reliever airport. The letter shall 
establish a schedule under which the Secretary will reimburse 
the sponsor for the Government's share of allowable project 
costs, as amounts become available, if the sponsor, after the 
Secretary issues the letter, carries out the project without 
receiving amounts under this subchapter.
  (2) Paragraph (1) of this subsection applies to a project--
          (A) about which the sponsor notifies the Secretary, 
        before the project begins, of the sponsor's intent to 
        carry out the project;
          (B) that will comply with all statutory and 
        administrative requirements that would apply to the 
        project if it were carried out with amounts made 
        available under this subchapter; and
          (C) that meets the criteria of section 47115(d) and, 
        if for a project at a commercial service airport having 
        at least 0.25 percent of the boardings each year at all 
        such airports, the Secretary decides will enhance 
        system-wide airport capacity significantly.
  (3) A letter of intent issued under paragraph (1) of 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 appropriation laws.
  (4) The total estimated amount of future Government 
obligations covered by all outstanding letters of intent under 
paragraph (1) of this subsection may not be more than the 
amount authorized to carry out section 48103 of this title, 
less an amount reasonably estimated by the Secretary to be 
needed for grants under section 48103 that are not covered by a 
letter.
  (5) Letters of intent.--The Secretary may not require an 
eligible agency to impose a passenger facility fee under 
section 40117 in order to obtain a letter of intent under this 
section.
  (6) Limitation on statutory construction.--Nothing in this 
section shall be construed to prohibit the obligation of 
amounts pursuant to a letter of intent under this subsection in 
the same fiscal year as the letter of intent is issued.
  (f) Nonallowable Costs.--Except as provided in subsection (d) 
of this section and section 47118(f) of this title, a cost is 
not an allowable airport development project cost if it is 
for--
          (1) constructing a public parking facility for 
        passenger automobiles;
          (2) constructing, altering, or repairing part of an 
        airport building, except to the extent the building 
        will be used for facilities or activities directly 
        related to the safety of individuals at the airport;
          (3) decorative landscaping; or
          (4) providing or installing sculpture or art works.
  (g) Use of Discretionary Funds.--A project for which cost 
reimbursement is provided under subsection (b)(2)(C) shall not 
receive priority consideration with respect to the use of 
discretionary funds made available under section 47115 of this 
title even if the amounts made available under paragraphs (1) 
and (2) of section 47114(c) or section 47114(d)(3)(A) are not 
sufficient to cover the Government's share of the cost of the 
project.
  (h) Nonprimary Airports.--The Secretary may decide that the 
costs of revenue producing aeronautical support [facilities, 
including fuel farms and hangars,] facilities, as defined by 
section 47102, 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.
  (i) Bird-Detecting Radar Systems.--Within 180 days after the 
date of enactment of the FAA Air Transportation Modernization 
and Safety Improvement Act, the Administrator shall analyze the 
conclusions of ongoing studies of various types of 
commercially-available bird radar systems, based upon that 
analysis, if the Administrator determines such systems have no 
negative impact on existing navigational aids and that the 
expenditure of such funds is appropriate, the Administrator 
shall allow the purchase of bird-detecting radar systems as an 
allowable airport development project costs subject to 
subsection (b). If a determination is made that such radar 
systems will not improve or negatively impact airport safety, 
the Administrator shall issue a report to the Senate Committee 
on Commerce, Science, and Transportation and the House of 
Representatives Committee on Transportation and Infrastructure 
on why that determination was made.

Sec. 47111. Payments under project grant agreements

    (a) General Authority.--After making a project grant 
agreement under this subchapter and consulting with the 
sponsor, the Secretary of Transportation may decide when and in 
what amounts payments under the agreement will be made. 
Payments totaling not more than 90 percent of the United States 
Government's share of the project's estimated allowable costs 
may be made before the project is completed if the sponsor 
certifies to the Secretary that the total amount expended from 
the advance payments at any time will not be more than the cost 
of the airport development work completed on the project at 
that time.
    (b) Recovering Payments.--If the Secretary determines that 
the total amount of payments made under a grant agreement under 
this subchapter is more than the Government's share of the 
total allowable project costs, the Government may recover the 
excess amount. If the Secretary finds that a project for which 
an advance payment was made has not been completed within a 
reasonable time, the Government may recover any part of the 
advance payment for which the Government received no benefit.
    (c) Payment Deposits.--A payment under a project grant 
agreement under this subchapter may be made only to an official 
or depository designated by the sponsor and authorized by law 
to receive public money.
    (d) Withholding Payments.--(1) The Secretary may withhold a 
payment under a grant agreement under this subchapter for more 
than 180 days after the payment is due only if the Secretary--
            (A) notifies the sponsor and provides an 
        opportunity for a hearing; and
            (B) finds that the sponsor has violated the 
        agreement.
    (2) The 180-day period may be extended by--
            (A) agreement of the Secretary and the sponsor; or
            (B) the hearing officer if the officer decides an 
        extension is necessary because the sponsor did not 
        follow the schedule the officer established.
    (3) A person adversely affected by an order of the 
Secretary withholding a payment may apply for review of the 
order by filing a petition in the United States Court of 
Appeals for the District of Columbia Circuit or in the court of 
appeals of the United States for the circuit in which the 
project is located. The petition must be filed not later than 
60 days after the order is served on the petitioner.
    (e) Action on Grant Assurances Concerning Airport 
Revenues.--If, after notice and opportunity for a hearing, the 
Secretary finds a violation of section 47107(b) of this title, 
as further defined by the Secretary under section 47107(l) of 
this title, or a violation of an assurance made under section 
47107(b) of this title, and the Secretary has provided an 
opportunity for the airport sponsor to take corrective action 
to cure such violation, and such corrective action has not been 
taken within the period of time set by the Secretary, the 
Secretary shall withhold approval of any new grant application 
for funds under this chapter, or any proposed modification to 
an existing grant that would increase the amount of funds made 
available under this chapter to the airport [sponsor, and 
withhold approval of any new application to impose a fee under 
section 40117 of this title. Such applications may thereafter 
be approved only upon a finding by the Secretary that such 
corrective action as the Secretary requires has been taken to 
address the violation and that the violation no longer exists.] 
sponsor. A sponsor shall not propose collection or use of 
passenger facility charges for any new projects under 
paragraphs (3) through (6) of section 40117(c) unless the 
Secretary determines that the sponsor has taken corrective 
action to address the violation and the violation no longer 
exists.
    (f) Judicial Enforcement.--For any violation of this 
chapter or any grant assurance made under this chapter, the 
Secretary may apply to the district court of the United States 
for any district in which the violation occurred for 
enforcement. Such court shall have jurisdiction to enforce 
obedience thereto by a writ of injunction or other process, 
mandatory or otherwise, restraining any person from further 
violation.

Sec. 47112. Carrying out airport development projects

  (a) Construction Work.--The Secretary of Transportation may 
inspect and approve construction work for an airport 
development project carried out under a grant agreement under 
this subchapter. The construction work must be carried out in 
compliance with regulations the Secretary prescribes. The 
regulations shall require the sponsor to make necessary cost 
and progress reports on the project. The regulations may amend 
or modify a contract related to the project only if the 
contract was made with actual notice of the regulations.
  (b) Prevailing Wages.--A contract for more than $2,000 
involving labor for an airport development project carried out 
under a grant agreement under this subchapter must require 
contractors to pay labor minimum wage rates as determined by 
the Secretary of Labor under sections 3141-3144, 3146, and 3147 
of title 40. The minimum rates must be included in the bids for 
the work and in the invitation for those bids.
  (c) Veterans' Preference.--(1) In this subsection--
          (A) ``disabled veteran'' has the same meaning given 
        that term in section 2108 of title 5.
          (B) ``Vietnam-era veteran'' means an individual who 
        served on active duty (as defined in section 101 of 
        title 38) in the armed forces for more than 180 
        consecutive days, any part of which occurred after 
        August 4, 1964, and before May 8, 1975, and who was 
        [separated from] discharged or released from active 
        duty in the armed forces under honorable conditions.
          (C) ``Afghanistan-Iraq war veteran'' means an 
        individual who served on active duty, as defined by 
        section 101(21) of title 38, at any time in the armed 
        forces for a period of more than 180 consecutive days, 
        any part of which occurred during the period beginning 
        on September 11, 2001, and ending on the date 
        prescribed by Presidential proclamation or by law as 
        the last date of Operation Iraqi Freedom.
  (2) A contract involving labor for carrying out an airport 
development project under a grant agreement under this 
subchapter must require that preference in the employment of 
labor (except in executive, administrative, and supervisory 
positions) be given to Vietnam-era [veterans and] veterans, 
Afghanistan-Iraq war veterans, and disabled veterans when they 
are available and qualified for the employment.
  (3) A contract involving labor for carrying out an airport 
development project under a grant agreement under this 
subchapter must require that a preference be given to the use 
of small business concerns (as defined in section 3 of the 
Small Business Act (15 U.S.C. 632)) owned and controlled by 
disabled veterans.

Sec. 47113. Minority and disadvantaged business participation

  (a) Definitions.--In this section--
          (1) ``small business concern''--
                  (A) has the same meaning given that term in 
                section 3 of the Small Business Act (15 U.S.C. 
                632); but
                  (B) does not include a concern, or group of 
                concerns controlled by the same socially and 
                economically disadvantaged individual, that has 
                average annual gross receipts over the prior 3 
                fiscal years of more than $16,015,000, as 
                adjusted by the Secretary of Transportation for 
                inflation;
          (2) ``socially and economically disadvantaged 
        individual'' has the same meaning given that term in 
        section 8(d) of the Act (15 U.S.C. 637(d)) and relevant 
        subcontracting regulations prescribed under section 
        8(d), except that women are presumed to be socially and 
        economically disadvantaged; and
          (3) the term ``qualified HUBZone small business 
        concern'' has the meaning given that term in section 
        3(p) of the Small Business Act (15 U.S.C. 632(o)).
  (b) General Requirement.--Except to the extent the Secretary 
decides otherwise, at least 10 percent of amounts available in 
a fiscal year under section 48103 of this title shall be 
expended with small business concerns owned and controlled by 
socially and economically disadvantaged individuals or 
qualified HUBZone small business concerns.
  (c) Uniform Criteria.--The Secretary shall establish minimum 
uniform criteria for State governments and airport sponsors to 
use in certifying whether a small business concern qualifies 
under this section. The criteria shall include on-site visits, 
personal interviews, licenses, analyses of stock ownership and 
bonding capacity, listings of equipment and work completed, 
resumes of principal owners, financial capacity, and type of 
work preferred.
  (d) Surveys and Lists.--Each State or airport sponsor 
annually shall survey and compile a list of small business 
concerns referred to in subsection (b) of this section and the 
location of each concern in the State.
  (e) Personal Net Worth Cap.--Not later than 180 days after 
the date of enactment of the FAA Air Transportation 
Modernization and Safety Improvement Act, the Secretary shall 
issue final regulations to adjust the personal net worth cap 
used in determining whether an individual is economically 
disadvantaged for purposes of qualifying under the definition 
contained in subsection (a)(2) and under section 47107(e). The 
regulations shall correct for the impact of inflation since the 
Small Business Administration established the personal net 
worth cap at $750,000 in 1989.
  (f) Exclusion of Retirement Benefits.--
          (1) In general.--In calculating a business owner's 
        personal net worth, any funds held in a qualified 
        retirement account owned by the business owner shall be 
        excluded, subject to regulations to be issued by the 
        Secretary.
          (2) Regulations.--Not later than one year after the 
        date of enactment of the FAA Air Transportation 
        Modernization and Safety Improvement Act, the Secretary 
        shall issue final regulations to implement paragraph 
        (1), including consideration of appropriate safeguards, 
        such as a limit on the amount of such accounts, to 
        prevent circumvention of personal net worth 
        requirements.
  (g) Prohibition on Excessive or Discriminatory Bonding 
Requirements.--
          (1) In general.--The Secretary shall establish a 
        program to eliminate barriers to small business 
        participation in airport-related contracts and 
        concessions by prohibiting excessive, unreasonable, or 
        discriminatory bonding requirements for any project 
        funded under this chapter or using passenger facility 
        revenues under section 40117.
          (2) Regulations.--Not later than one year after the 
        date of enactment of the FAA Air Transportation 
        Modernization and Safety Improvement Act, the Secretary 
        shall issue a final rule to establish the program under 
        paragraph (1).

Sec. 47114. Apportionments

  (a) Definition.--In this section, ``amount subject to 
apportionment'' means the amount newly made available under 
section 48103 of this title for a fiscal year.
  (b) Apportionment Date.--On the first day of each fiscal 
year, the Secretary of Transportation shall apportion the 
amount subject to apportionment for that fiscal year as 
provided in this section.
  (c) Amounts Apportioned to Sponsors.--
          (1) Primary airports.--
                  (A) Apportionment.--The Secretary shall 
                apportion to the sponsor of each primary 
                airport for each fiscal year an amount equal 
                to--
                          (i) $7.80 for each of the first 
                        50,000 passenger boardings at the 
                        airport during the prior calendar year;
                          (ii) $5.20 for each of the next 
                        50,000 passenger boardings at the 
                        airport during the prior calendar year;
                          (iii) $2.60 for each of the next 
                        400,000 passenger boardings at the 
                        airport during the prior calendar year;
                          (iv) $.65 for each of the next 
                        500,000 passenger boardings at the 
                        airport during the prior calendar year; 
                        and
                          (v) $.50 for each additional 
                        passenger boarding at the airport 
                        during the prior calendar year.
                  (B) Minimum and maximum apportionments.--Not 
                less than $650,000 nor more than $22,000,000 
                may be apportioned under subparagraph (A) of 
                this paragraph to an airport sponsor for a 
                primary airport for each fiscal year.
                  (C) Special rule.--In any fiscal year in 
                which the total amount made available under 
                section 48103 is $3,200,000,000 or more--
                          (i) the amount to be apportioned to a 
                        sponsor under subparagraph (A) shall be 
                        increased by doubling the amount that 
                        would otherwise be apportioned;
                          (ii) the minimum apportionment to a 
                        sponsor under subparagraph (B) shall be 
                        $1,000,000 rather than $650,000; and
                          (iii) the maximum apportionment to a 
                        sponsor under subparagraph (B) shall be 
                        $26,000,000 rather than $22,000,000.
                  (D) New airports.--Notwithstanding 
                subparagraph (A), the Secretary shall apportion 
                on the first day of the first fiscal year 
                following the official opening of a new airport 
                with scheduled passenger air transportation an 
                amount equal to the minimum amount set forth in 
                subparagraph (B) or (C), as appropriate, to the 
                sponsor of such airport.
                  (E) Use of previous fiscal year's 
                apportionment.--Notwithstanding subparagraph 
                (A), the Secretary may apportion to an airport 
                sponsor in a fiscal year an amount equal to the 
                amount apportioned to that sponsor in the 
                previous fiscal year if the Secretary finds 
                that--
                          (i) passenger boardings at the 
                        airport fell below 10,000 in the 
                        calendar year used to calculate the 
                        apportionment;
                          (ii) the airport had at least 10,000 
                        passenger boardings in the calendar 
                        year prior to the calendar year used to 
                        calculate apportionments to airport 
                        sponsors in a fiscal year; [and]
                          (iii) the cause of the shortfall in 
                        passenger boardings was a temporary but 
                        significant interruption in service by 
                        an air carrier to that airport due to 
                        an employment action, natural disaster, 
                        or other event unrelated to the demand 
                        for air transportation at the affected 
                        [airport.] airport; and
                          (iv) the airport received scheduled 
                        or unscheduled air service from a large 
                        certified air carrier (as defined in 
                        part 241 of title 14, Code of Federal 
                        Regulations, or such other regulations 
                        as may be issued by the Secretary under 
                        the authority of section 41709) and the 
                        Secretary determines that the airport 
                        had more than 10,000 passenger 
                        boardings in the preceding calendar 
                        year, based on data submitted to the 
                        Secretary under part 241 of title 14, 
                        Code of Federal Regulations.
                  (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.
                  (G) Special rule for [fiscal year 2006] 
                fiscal years 2008 through 2011._Notwithstanding 
                subparagraph (A) and the absence of scheduled 
                passenger aircraft service at an airport, the 
                Secretary may apportion in [fiscal year 2006] 
                fiscal years 2008 through 2011 to the sponsor 
                of the airport an amount equal to $500,000, if 
                the Secretary finds that--
                          [(i) the passenger boardings at the 
                        airport were below 10,000 in calendar 
                        year 2004;]
                          (i) the average annual passenger 
                        boardings at the airport for calendar 
                        years 2004 through 2006 were below 
                        10,000 per year;
                          (ii) the airport had at least 10,000 
                        passenger boardings and scheduled 
                        passenger aircraft service in either 
                        calendar year [2000 or 2001;] 2003; 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.
          (H) Special rule for fiscal years 2010 and 2011.--
        Notwithstanding subparagraph (A), for an airport that 
        had more than 10,000 passenger boardings and scheduled 
        passenger aircraft service in calendar year 2007, but 
        in either calendar years 2008 or 2009, or both years, 
        the number of passenger boardings decreased to a level 
        below 10,000 boardings per year at such airport, the 
        Secretary may apportion in fiscal years 2010 or 2011 to 
        the sponsor of such an airport an amount equal to the 
        amount apportioned to that sponsor in fiscal year 2009.
  (2) Cargo airports.--
          (A) Apportionment.--Subject to subparagraph (D), the 
        Secretary shall apportion an amount equal to 3.5 
        percent of the amount subject to apportionment each 
        fiscal year to the sponsors of airports served by 
        aircraft providing air transportation of only cargo 
        with a total annual landed weight of more than 
        100,000,000 pounds.
          (B) Suballocation formula.--Any funds apportioned 
        under subparagraph (A) to sponsors of airports 
        described in subparagraph (A) shall be allocated among 
        those airports in the proportion that the total annual 
        landed weight of aircraft described in subparagraph (A) 
        landing at each of those airports bears to the total 
        annual landed weight of those aircraft landing at all 
        those airports.
          (C) Limitation.--In any fiscal year in which the 
        total amount made available under section 48103 is less 
        than $3,200,000,000, not more than 8 percent of the 
        amount apportioned under subparagraph (A) may be 
        apportioned for any one airport.
          (D) Distribution to other airports.--Before 
        apportioning amounts to the sponsors of airports under 
        subparagraph (A) for a fiscal year, the Secretary may 
        set-aside a portion of such amounts for distribution to 
        the sponsors of other airports, selected by the 
        Secretary, that the Secretary finds will be served 
        primarily by aircraft providing air transportation of 
        only cargo.
          (E) Determination of landed weight.--Landed weight 
        under this paragraph is the landed weight of aircraft 
        landing at each airport described in subparagraph (A) 
        during the prior calendar year.
  (d) Amounts Apportioned for General Aviation Airports.--
          (1) Definitions.--In this subsection, the following 
        definitions apply:
                  (A) Area.--The term ``area'' includes land 
                and water.
                  (B) Population.--The term ``population'' 
                means the population stated in the latest 
                decennial census of the United States.
          (2) Apportionment.--Except as provided in paragraph 
        (3), the Secretary shall apportion to the States 18.5 
        percent of the amount subject to apportionment for each 
        fiscal year as follows:
                  (A) 0.66 percent of the apportioned amount to 
                Guam, American Samoa, the Northern Mariana 
                Islands, and the Virgin Islands.
                  (B) Except as provided in paragraph (4), 
                49.67 percent of the apportioned amount for 
                airports, excluding primary airports but 
                including reliever and nonprimary commercial 
                service airports, in States not named in 
                subparagraph (A) in the proportion that the 
                population of each of those States bears to the 
                total population of all of those States.
                  (C) Except as provided in paragraph (4), 
                49.67 percent of the apportioned amount for 
                airports, excluding primary airports but 
                including reliever and nonprimary commercial 
                service airports, in States not named in 
                subparagraph (A) in the proportion that the 
                area of each of those States bears to the total 
                area of all of those States.
          (3) Special rule.--In any fiscal year in which the 
        total amount made available under section 48103 is 
        $3,200,000,000 or more, rather than making an 
        apportionment under paragraph (2), the Secretary shall 
        apportion 20 percent of the amount subject to 
        apportionment for each fiscal year as follows:
                  (A) To each airport, excluding primary 
                airports but including reliever and nonprimary 
                commercial service airports, in States the 
                lesser of--
                          (i) $150,000; or
                          (ii) 1/5 of the most recently 
                        published estimate of the 5-year costs 
                        for airport improvement for the 
                        airport, as listed in the national plan 
                        of integrated airport systems developed 
                        by the Federal Aviation Administration 
                        under section 47103.
                  (B) Any remaining amount to States as 
                follows:
                          (i) 0.62 percent of the remaining 
                        amount to Guam, American Samoa, the 
                        Commonwealth of the Northern Mariana 
                        Islands, and the Virgin Islands.
                          (ii) Except as provided in paragraph 
                        (4), 49.69 percent of the remaining 
                        amount for airports, excluding primary 
                        airports but including reliever and 
                        nonprimary commercial service airports, 
                        in States not named in clause (i) in 
                        the proportion that the population of 
                        each of those States bears to the total 
                        population of all of those States.
                          (iii) Except as provided in paragraph 
                        (4), 49.69 percent of the remaining 
                        amount for airports, excluding primary 
                        airports but including reliever and 
                        nonprimary commercial service airports, 
                        in States not named in clause (i) in 
                        the proportion that the area of each of 
                        those States bears to the total area of 
                        all of those States.
          (4) Airports in Alaska, Puerto Rico, and Hawaii.--An 
        amount apportioned under paragraph (2) or (3) to 
        Alaska, Puerto Rico, or Hawaii for airports in such 
        State may be made available by the Secretary for any 
        public airport in those respective jurisdictions.
          (5) Use of state highway specifications.--
                  (A) In general.--The Secretary may permit the 
                use of State highway specifications for 
                airfield pavement construction using funds made 
                available under this subsection at nonprimary 
                airports with runways of 5,000 feet or shorter 
                serving aircraft that do not exceed 60,000 
                pounds gross weight if the Secretary determines 
                that--
                          (i) safety will not be negatively 
                        affected; and
                          (ii) the life of the pavement will 
                        not be shorter than it would be if 
                        constructed using Administration 
                        standards.
                  (B) Limitation.--An airport may not seek 
                funds under this subchapter for runway 
                rehabilitation or reconstruction of any such 
                airfield pavement constructed using State 
                highway specifications for a period of 10 years 
                after construction is completed unless the 
                Secretary determines that the rehabilitation or 
                reconstruction is required for safety reasons.
          (6) Integrated airport system planning.--
        Notwithstanding any other provision of this subsection, 
        funds made available under this subsection may be used 
        for integrated airport system planning that encompasses 
        one or more primary airports.
  (e) Supplemental Apportionment for Alaska and any United 
States Territory.--
          (1) In general.--Notwithstanding subsections (c) and 
        (d) of this section, the Secretary may apportion 
        amounts for airports in Alaska in the way in which 
        amounts were apportioned in the fiscal year ending 
        September 30, 1980, under section 15(a) of the Act. 
        However, in apportioning amounts for a fiscal year 
        under this subsection, the Secretary shall apportion--
                  (A) for each primary airport at least as much 
                as would be apportioned for the airport under 
                subsection (c)(1) of this section; and
                  (B) a total amount at least equal to the 
                minimum amount required to be apportioned to 
                airports in Alaska in the fiscal year ending 
                September 30, 1980, under section 15(a)(3)(A) 
                of the Act.
          (2) Authority for discretionary grants.--This 
        subsection does not prohibit the Secretary from making 
        project grants for airports in Alaska from the 
        discretionary fund under section 47115 of this title.
          (3) Airports eligible for funds.--An amount 
        apportioned under this subsection may be used for any 
        public airport in Alaska.
          (4) Special rule.--In any fiscal year in which the 
        total amount made available under section 48103 is 
        $3,200,000,000 or more, the amount that may be 
        apportioned for airports in Alaska under paragraph (1) 
        shall be increased by doubling the amount that would 
        otherwise be apportioned.
          (5) United states territory minimum guarantee.--In 
        any fiscal year in which the total amount apportioned 
        to airports in a United States Territory under 
        subsections (c) and (d) is less than 1.5 percent of the 
        total amount apportioned to all airports under those 
        subsections, the Secretary may apportion to the local 
        authority in any United States Territory responsible 
        for airport development projects in that fiscal year an 
        amount equal to the difference between 1.5 percent of 
        the total amounts apportioned under subsections (c) and 
        (d) in that fiscal year and the amount otherwise 
        apportioned under those subsections to airports in a 
        United States Territory in that fiscal year.
  (f) Reducing Apportionments.--
          (1) In general.--Subject to paragraph (3), an amount 
        that would be apportioned under this section (except 
        subsection (c)(2) in a fiscal year to the sponsor of an 
        airport having at least .25 percent of the total number 
        of boardings each year in the United States and for 
        which a fee is imposed in the fiscal year under section 
        40117 of this title shall be reduced by an amount equal 
        to--
                  (A) in the case of a fee of $3.00 or less, 50 
                percent of the projected revenues from the fee 
                in the fiscal year but not by more than 50 
                percent of the amount that otherwise would be 
                apportioned under this section; and
                  (B) in the case of a fee of more than $3.00, 
                75 percent of the projected revenues from the 
                fee in the fiscal year but not by more than 75 
                percent of the amount that otherwise would be 
                apportioned under this section.
          (2) Effective date of reduction.--A reduction in an 
        apportionment required by paragraph (1) shall not take 
        effect until the first fiscal year following the year 
        in which the collection of the fee imposed under 
        section 40117 is begun.
          (3) Special rule for transitioning airports.--
                  (A) In general.--Beginning with the fiscal 
                year following the first calendar year in which 
                the sponsor of an airport has more than .25 
                percent of the total number of boardings in the 
                United States, the sum of the amount that would 
                be apportioned under this section after 
                application of paragraph (1) in a fiscal year 
                to such sponsor and the projected revenues to 
                be derived from the fee in such fiscal year 
                shall not be less than the sum of the 
                apportionment to such airport for the preceding 
                fiscal year and the revenues derived from such 
                fee in the preceding fiscal year.
                  (B) Effective period.--Subparagraph (A) shall 
                be in effect for fiscal [year 2004.] years 2010 
                and 2011.

Sec. 47115. Discretionary fund

  (a) Existence and Amounts in Fund.--The Secretary of 
Transportation has a discretionary fund. The fund consists of--
          (1) amounts subject to apportionment for a fiscal 
        year that are not apportioned under section 47114(c)-
        (e) of this title; and
          (2) 12.5 percent of amounts not apportioned under 
        section 47114 of this title because of section 
        47114(f).
  (b) Availability of Amounts.--Subject to subsection (c) of 
this section and section 47117(e) of this title, the fund is 
available for making grants for any purpose for which amounts 
are made available under section 48103 of this title that the 
Secretary considers most appropriate to carry out this 
subchapter.
  (c) Minimum Percentage for Primary and Reliever Airports.--At 
least 75 percent of the amount in the fund and distributed by 
the Secretary in a fiscal year shall be used for making 
grants--
          (1) to preserve and enhance capacity, safety, and 
        security at primary and reliever airports; and
          (2) to carry out airport noise compatibility planning 
        and programs at primary and reliever airports.
  (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.
  (e) Waiving Percentage Requirement.--If the Secretary decides 
the Secretary cannot comply with the percentage requirement of 
subsection (c) of this section in a fiscal year because there 
are insufficient qualified grant applications to meet that 
percentage, the amount the Secretary determines will not be 
distributed as required by subsection (c) is available for 
obligation during the fiscal year without regard to the 
requirement.
  (f) Consideration of Diversion of Revenues in Awarding 
Discretionary Grants.--
          (1) General rule.--Subject to paragraph (2), in 
        deciding whether or not to distribute funds to an 
        airport from the discretionary funds established by 
        subsection (a) of this section and section 47116 of 
        this title, the Secretary shall consider as a factor 
        militating against the distribution of such funds to 
        the airport the fact that the airport is using revenues 
        generated by the airport or by local taxes on aviation 
        fuel for purposes other than capital or operating costs 
        of the airport or the local airports system or other 
        local facilities which are owned or operated by the 
        owner or operator of the airport and directly and 
        substantially related to the actual air transportation 
        of passengers or property.
          (2) Required finding.--Paragraph (1) shall apply only 
        when the Secretary finds that the amount of revenues 
        used by the airport for purposes other than capital or 
        operating costs in the airport's fiscal year preceding 
        the date of the application for discretionary funds 
        exceeds the amount of such revenues in the airport's 
        first fiscal year ending after August 23, 1994, 
        adjusted by the Secretary for changes in the Consumer 
        Price Index of All Urban Consumers published by the 
        Bureau of Labor Statistics of the Department of Labor.
  (g) Minimum Amount To Be Credited.--
          (1) General rule.--In a fiscal year, there shall be 
        credited to the fund, out of amounts made available 
        under section 48103 of this title, an amount that is at 
        least equal to the sum [of--
                  [(A) $148,000,000; plus
                  [(B) the total amount required from the fund 
                to carry out in the fiscal year letters of 
                intent issued before January 1, 1996, under 
                section 47110(e) of this title or the Airport 
                and Airway Improvement Act of 1982.
        [The amount credited is exclusive of amounts that have 
        been apportioned in a prior fiscal year under section 
        47114 of this title and that remain available for 
        obligation.]
        of $520,000,000. The amount credited is exclusive of 
        amounts that have been apportioned in a prior fiscal 
        year under section 47114 of this title and that remain 
        available for obligation.
          (2) Reduction of apportionments.--In a fiscal year in 
        which the amount credited under subsection (a) is less 
        than the minimum amount to be credited under paragraph 
        (1), the total amount calculated under paragraph (3) 
        shall be reduced by an amount that, when credited to 
        the fund, together with the amount credited under 
        subsection (a), equals such minimum amount.
          (3) Amount of reduction.--For a fiscal year, the 
        total amount available to make a reduction to carry out 
        paragraph (2) is the total of the amounts determined 
        under sections 47114(c)(1)(A), 47114(c)(2), 47114(d), 
        and 47117(e) of this title. Each amount shall be 
        reduced by an equal percentage to achieve the 
        reduction.
  (h) Priority for Letters of Intent.--In making grants in a 
fiscal year with funds made available under this section, the 
Secretary shall fulfill intentions to obligate under section 
47110(e).
  (i) Considerations for Project Under Expanded Security 
Eligibility.--In order to assure that funding under this 
subchapter is provided to the greatest needs, the Secretary, in 
selecting a project described in section 47102(3)(J) for a 
grant, shall consider the non-federal resources available to 
sponsor, the use of such non-federal resources, and the degree 
to which the sponsor is providing increased funding for the 
project.
  (j) Marshall Islands, Micronesia, and Palau.--For fiscal 
years 2004 through [2009,] 2011, 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. 47117. Use of apportioned amounts

  (a) Grant Purpose.--Except as provided in this section, an 
amount apportioned under section 47114(c)(1) or (d)(2) of this 
title is available for making grants for any purpose for which 
amounts are made available under section 48103 of this title.
  (b) Period of Availability.--An amount apportioned under 
section 47114 of this title is available to be obligated for 
grants under the apportionment only during the fiscal year for 
which the amount was apportioned and the 2 fiscal years 
immediately after that year or the 3 fiscal years immediately 
following that year in the case of a nonhub airport or any 
airport that is not a commercial service airport. If the amount 
is not obligated under the apportionment within that time, it 
shall be added to the discretionary fund.
  (c) Primary Airports.--(1) An amount apportioned to a sponsor 
of a primary airport under section 47114(c)(1) of this title is 
available for grants for any public-use airport of the sponsor 
included in the national plan of integrated airport systems.
  (2) 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) State Use.--An amount apportioned to a State under--
          (1) section 47114(d)(2)(A) of this title is available 
        for grants for airports located in the State; and
          (2) section 47114(d)(2)(B) or (C) of this title is 
        available for grants for airports described in section 
        47114(d)(2)(B) or (C) and located in the State.
  (e) Special Apportionment Categories.--(1) The Secretary 
shall use amounts available to the discretionary fund under 
section 47115 of this title for each fiscal year as follows:
          (A) At least [35 percent] $300,000,000 for grants for 
        airport noise compatibility planning under section 
        47505(a)(2), for carrying out noise compatibility 
        programs under section 47504(c), 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.).] et seq.), and for water quality mitigation 
        projects to comply with the Act of June 30, 1948 (33 
        U.S.C. 1251 et seq.), approved in an environmental 
        record of decision for an airport development project 
        under this title. The Secretary may count the amount of 
        grants made for such planning and programs with funds 
        apportioned under section 47114 in that fiscal year in 
        determining whether or not [such 35 percent requirement 
        is] the requirements of the preceding sentence are 
        being met in that fiscal year.
          (B) atast 4 percent to sponsors of current 
        or former military airports designated by the Secretary 
        under section 47118(a) of this title for grants for 
        developing current and former military airports to 
        improve the capacity of the national air transportation 
        system and to sponsors of noncommercial service 
        airports for grants for operational and maintenance 
        expenses at any such airport if the amount of such 
        grants to the sponsor of the airport does not exceed 
        $30,000 in that fiscal year, if the Secretary 
        determines that the airport is adversely affected by 
        the closure or realignment of a military base, and if 
        the sponsor of the airport certifies that the airport 
        would otherwise close if the airport does not receive 
        the grant.
          (C) In any fiscal year in which the total amount made 
        available under section 48103 is $3,200,000,000 or 
        more, at least two-thirds of 1 percent for grants to 
        sponsors of reliever airports which have--
                  (i) more than 75,000 annual operations;
                  (ii) a runway with a minimum usable landing 
                distance of 5,000 feet;
                  (iii) a precision instrument landing 
                procedure;
                  (iv) a minimum number of aircraft, to be 
                determined by the Secretary, based at the 
                airport; and
                  (v) been designated by the Secretary as a 
                reliever airport to an airport with 20,000 
                hours of annual delays in commercial passenger 
                aircraft takeoffs and landings.
  (2) If the Secretary decides that an amount required to be 
used for grants under paragraph (1) of this subsection cannot 
be used for a fiscal year because there are insufficient 
qualified grant applications, the amount the Secretary 
determines cannot be used is available during the fiscal year 
for grants for other airports or for other purposes for which 
amounts are authorized for grants under section 48103 of this 
title.
  (3) Priority.--The Secretary shall give priority in making 
grants under paragraph (1)(A) to applications for airport noise 
compatibility planning and programs at and around--
          (A) Chicago O'Hare International Airport;
          (B) LaGuardia Airport;
          (C) John F. Kennedy International Airport; and
          (D) Ronald Reagan Washington National Airport.
  (f) Discretionary Use of Apportionments.--
          (1) In general.--Subject to paragraph (2), if the 
        Secretary finds that all or part of an amount of an 
        apportionment under section 47114 is not required 
        during a fiscal year to fund a grant for which the 
        apportionment may be used, the Secretary may use during 
        such fiscal year the amount not so required to make 
        grants for any purpose for which grants may be made 
        under section 48103. The finding may be based on the 
        notifications that the Secretary receives under section 
        47105(f) or on other information received from airport 
        sponsors.
          (2) Restoration of apportionments.--
                  (A) In general.--If the fiscal year for which 
                a finding is made under paragraph (1) with 
                respect to an apportionment is not the last 
                fiscal year of availability of the 
                apportionment under subsection (b), the 
                Secretary shall restore to the apportionment an 
                amount equal to the amount of the apportionment 
                used under paragraph (1) for a discretionary 
                grant whenever a sufficient amount is made 
                available under section 48103.
                  (B) Period of availability.--If restoration 
                under this paragraph is made in the fiscal year 
                for which the finding is made or the succeeding 
                fiscal year, the amount restored shall be 
                subject to the original period of availability 
                of the apportionment under subsection (b). If 
                the restoration is made thereafter, the amount 
                restored shall remain available in accordance 
                with subsection (b) for the original period of 
                availability of the apportionment plus the 
                number of fiscal years during which a 
                sufficient amount was not available for the 
                restoration.
          (3) Newly available amounts.--
                  (A) Restored amounts to be unavailable for 
                discretionary grants.--Of an amount newly 
                available under section 48103 of this title, an 
                amount equal to the amounts restored under 
                paragraph (2) shall not be available for 
                discretionary grant obligations under section 
                47115.
                  (B) Use of remaining amounts.--Subparagraph 
                (A) does not impair the Secretary's authority 
                under paragraph (1), after a restoration under 
                paragraph (2), to apply all or part of a 
                restored amount that is not required to fund a 
                grant under an apportionment to fund 
                discretionary grants.
          (4) Limitations on obligations apply.--Nothing in 
        this subsection shall be construed to authorize the 
        Secretary to incur grant obligations under section 
        47104 for a fiscal year in an amount greater than the 
        amount made available under section 48103 for such 
        obligations for such fiscal year.
  (g) Limiting Authority of Secretary.--The authority of the 
Secretary to make grants during a fiscal year from amounts that 
were apportioned for a prior fiscal year and remain available 
for approved airport development project grants under 
subsection (b) of this section may be impaired only by a law 
enacted after September 3, 1982, that expressly limits that 
authority.

Sec. 47118. Designating current and former military airports

  (a) General Requirements.--The Secretary of Transportation 
shall designate current or former military airports for which 
grants may be made under section 47117(e)(1)(B) of this title. 
The maximum number of airports bearing such designation at any 
time is 15. The Secretary may only so designate an airport 
(other than an airport so designated before August 24, 1994) 
if--
          (1) the airport is a former military installation 
        closed or realigned under--
                  (A) section 2687 of title 10;
                  (B) section 201 of the Defense Authorization 
                Amendments and Base Closure and Realignment Act 
                (10 U.S.C. 2687 note); or
                  (C) section 2905 of the Defense Base Closure 
                and Realignment Act of 1990 (10 U.S.C. 2687 
                note); or
          (2) the airport is a military installation with both 
        military and civil aircraft operations.
  (b) Survey.--Not later than September 30, 1991, the Secretary 
shall complete a survey of current and former military airports 
to identify which airports have the greatest potential to 
improve the capacity of the national air transportation system. 
The survey shall identify the capital development needs of 
those airports to make them part of the system and which of 
those qualify for grants under section 47104 of this title.
  (c) Considerations.--In carrying out this section, the 
Secretary shall consider only current or former military 
airports for designation under this section if a grant under 
section 47117(e)(1)(B) would--
          (1) reduce delays at an airport with more than 20,000 
        hours of annual delays in commercial passenger aircraft 
        takeoffs and landings; [or]
          (2) enhance airport and air traffic control system 
        capacity in a metropolitan area or reduce current and 
        projected flight [delays.] delays; or
          (3) be critical to the safety of commercial, 
        military, or general aviation in trans-oceanic flights.
  (d) Grants.--Grants under section 47117(e)(1)(B) of this 
title may be made for an airport designated under subsection 
(a) of this section for the 5 fiscal years following the 
designation, and for subsequent periods, each not to exceed 5 
fiscal years, if the Secretary determines that the airport 
satisfies the designation criteria under subsection (a) at the 
beginning of each such subsequent period.
  (e) Terminal Building Facilities.--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 to the sponsor of a 
current or former military airport the Secretary designates 
under this section to construct, improve, or repair a terminal 
building facility, including terminal gates used for revenue 
passengers getting on or off aircraft. A gate constructed, 
improved, or repaired under this subsection--
          (1) may not be leased for more than 10 years; and
          (2) is not subject to majority in interest clauses.
  (f) Parking Lots, Fuel Farms, Utilities, Hangars, and Air 
Cargo Terminals.--
          (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 to the sponsor of a current or former 
        military airport the Secretary designates under this 
        section to construct, improve, or repair airport 
        surface parking lots, fuel farms, utilities, and 
        hangars and air cargo terminals of an area that is 
        50,000 square feet or less.
          (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).
  (g) Designation of General Aviation Airport.--Notwithstanding 
any other provision of this section, one of the airports 
bearing a designation under subsection (a) may be a general 
aviation airport that was a former military installation closed 
or realigned under a section referred to in subsection (a)(1).

           *       *       *       *       *       *       *


Sec. 47124. Agreements for State and local operation of airport 
                    facilities

  (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.
  (b) Air Traffic Control Contract Program.--(1)(A) The 
Secretary shall continue the low activity (Visual Flight Rules) 
level I air traffic control tower contract program established 
under subsection (a) of this section for towers existing on 
December 30, 1987, and extend the program to other towers as 
practicable.
  (B) If the Secretary determines that a tower already 
operating under this program has a benefit to cost ratio of 
less than 1.0, the airport sponsor or State or local government 
having jurisdiction over the airport shall not be required to 
pay the portion of the costs that exceeds the benefit for a 
period of 18 months after such determination is made.
  (C) If the Secretary finds that all or part of an amount made 
available to carry out the program continued under this 
paragraph is not required during a fiscal year, the Secretary 
may use during such fiscal year the amount not so required to 
carry out the program established under paragraph (3) of this 
section.
  (2) The Secretary may make a contract with a qualified entity 
(as determined by the Secretary) or, on a sole source basis, 
with a State or a political subdivision of a State to allow the 
entity, State, or subdivision to operate an airport traffic 
control tower classified as a level I (Visual Flight Rules) 
tower if the Secretary decides that the entity, State, or 
subdivision has the capability to comply with the requirements 
of this paragraph. The contract shall require that the entity, 
State, or subdivision comply with applicable safety regulations 
in operating the facility and with applicable competition 
requirements in making a subcontract to perform work to carry 
out the contract.
  (3) Contract air traffic control tower program.--
          (A) In general.--The Secretary shall establish a 
        program to contract for air traffic control services at 
        nonapproach control towers, as defined by the 
        Secretary, that do not qualify for the contract tower 
        program established under subsection (a) and continued 
        under paragraph (1) (in this paragraph referred to as 
        the ``Contract Tower Program'').
          (B) Program components.--In carrying out the program, 
        the Secretary shall--
                  (i) utilize for purposes of cost-benefit 
                analyses, current, actual, site-specific data, 
                forecast estimates, or airport master plan data 
                provided by a facility owner or operator and 
                verified by the Secretary; and
                  (ii) approve for participation only 
                facilities willing to fund a pro rata share of 
                the operating costs of the air traffic control 
                tower to achieve a 1-to-1 benefit-to-cost ratio 
                using actual site-specific contract tower 
                operating costs in any case in which there is 
                an operating air traffic control tower, as 
                required for eligibility under the Contract 
                Tower Program.
          (C) Priority.--In selecting facilities to participate 
        in the program, the Secretary shall give priority to 
        the following facilities:
                  (i) Air traffic control towers that are 
                participating in the Contract Tower Program but 
                have been notified that they will be terminated 
                from such program because the Secretary has 
                determined that the benefit-to-cost ratio for 
                their continuation in such program is less than 
                1.0.
                  (ii) Air traffic control towers that the 
                Secretary determines have a benefit-to-cost 
                ratio of at least .50.
                  (iii) Air traffic control towers of the 
                Federal Aviation Administration that are closed 
                as a result of the air traffic controllers 
                strike in 1981.
                  (iv) Air traffic control towers located at 
                airports or points at which an air carrier is 
                receiving compensation under the essential air 
                service program under this chapter.
                  (v) Air traffic control towers located at 
                airports that are prepared to assume partial 
                responsibility for maintenance costs.
                  (vi) Air traffic control towers located at 
                airports with safety or operational problems 
                related to topography, weather, runway 
                configuration, or mix of aircraft.
                  (vii) Air traffic control towers located at 
                an airport at which the community has been 
                operating the tower at its own expense.
          (D) Costs exceeding benefits.--If the costs of 
        operating an air traffic tower under the program exceed 
        the benefits, the airport sponsor or State or local 
        government having jurisdiction over the airport shall 
        pay the portion of the costs that exceed such 
        [benefit.] benefits, with the maximum allowable local 
        cost share for FAA Part 139 certified airports capped 
        at 20 percent for those airports with fewer than 50,000 
        annual passenger enplanements.
          (E) Funding.--Of the amounts appropriated pursuant to 
        section 106(k), not more than $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 
        $9,500,000 for fiscal year 2010, and $10,000,000 for 
        fiscal year 2011 may be used to carry out this 
        paragraph. If the Secretary finds that all or part of 
        an amount made available under this subparagraph is not 
        required during a fiscal year to carry out this 
        paragraph, the Secretary may use during such fiscal 
        year the amount not so required to carry out the 
        program continued under subsection (b)(1) of this 
        section.
  (4) Construction of air traffic control towers.--
          (A) Grants.--The Secretary may provide grants to a 
        sponsor of--
                  (i) a primary airport--
                          (I) from amounts made available under 
                        sections 47114(c)(1) and 47114(c)(2) 
                        for the construction or improvement of 
                        a nonapproach control tower, as defined 
                        by the Secretary, and for the 
                        acquisition and installation of air 
                        traffic control, communications, and 
                        related equipment to be used in that 
                        tower;
                          (II) from amounts made available 
                        under sections 47114(c)(1) and 
                        47114(c)(2) for reimbursement for the 
                        cost of construction or improvement of 
                        a nonapproach control tower, as defined 
                        by the Secretary, incurred after 
                        October 1, 1996, if the sponsor 
                        complied with the requirements of 
                        sections 47107(e), 47112(b), and 
                        47112(c) in constructing or improving 
                        that tower; and
                          (III) from amounts made available 
                        under sections 47114(c)(1) and 
                        47114(c)(2) for reimbursement for the 
                        cost of acquiring and installing in 
                        that tower air traffic control, 
                        communications, and related equipment 
                        that was acquired or installed after 
                        October 1, 1996; and
                  (ii) a public-use airport that is not a 
                primary airport--
                          (I) from amounts made available under 
                        sections 47114(c)(2) and 47114(d) for 
                        the construction or improvement of a 
                        nonapproach control tower, as defined 
                        by the Secretary, and for the 
                        acquisition and installation of air 
                        traffic control, communications, and 
                        related equipment to be used in that 
                        tower;
                          (II) from amounts made available 
                        under sections 47114(c)(2) and 
                        47114(d)(3)(A) for reimbursement for 
                        the cost of construction or improvement 
                        of a nonapproach control tower, as 
                        defined by the Secretary, incurred 
                        after October 1, 1996, if the sponsor 
                        complied with the requirements of 
                        sections 47107(e), 47112(b), and 
                        47112(c) in constructing or improving 
                        that tower; and
                          (III) from amounts made available 
                        under sections 47114(c)(2) and 
                        47114(d)(3)(A) for reimbursement for 
                        the cost of acquiring and installing in 
                        that tower air traffic control, 
                        communications, and related equipment 
                        that was acquired or installed after 
                        October 1, 1996.
          (B) Eligibility.--An airport sponsor shall be 
        eligible for a grant under this paragraph only if--
                  (i)(I) the sponsor is a participant in the 
                Federal Aviation Administration contract tower 
                program established under subsection (a) and 
                continued under paragraph (1) or the pilot 
                program established under paragraph (3); or
                  (II) construction of a nonapproach control 
                tower would qualify the sponsor to be eligible 
                to participate in such program;
                  (ii) the sponsor certifies that it will pay 
                not less than 10 percent of the cost of the 
                activities for which the sponsor is receiving 
                assistance under this paragraph;
                  (iii) the Secretary affirmatively accepts the 
                proposed contract tower into a contract tower 
                program under this section and certifies that 
                the Secretary will seek future appropriations 
                to pay the Federal Aviation Administration's 
                cost of the contract to operate the tower to be 
                constructed under this paragraph;
                  (iv) the sponsor certifies that it will pay 
                its share of the cost of the contract to 
                operate the tower to be constructed under this 
                paragraph; and
                  (v) in the case of a tower to be constructed 
                under this paragraph from amounts made 
                available under section 47114(d)(2) or 
                47114(d)(3)(B), the Secretary certifies that--
                          (I) the Federal Aviation 
                        Administration has consulted the State 
                        within the borders of which the tower 
                        is to be constructed and the State 
                        supports the construction of the tower 
                        as part of its State airport capital 
                        plan; and
                          (II) the selection of the tower for 
                        funding is based on objective criteria.
          (C) Limitation on Federal share.--The Federal share 
        of the cost of construction of a nonapproach control 
        tower under this paragraph may not exceed [$1,500,000.] 
        $2,000,000.
  (c)  Safety Audits.--The Secretary shall establish uniform 
standards and requirements for safety assessments of air 
traffic control towers that receive funding under this section 
in accordance with the Administration's safety management 
system.

           *       *       *       *       *       *       *


Sec. 47128. State block grant program

  (a) General Requirements.--The Secretary of Transportation 
shall prescribe [regulations] guidance to carry out a State 
block grant program. The [regulations] guidance shall provide 
that the Secretary may designate not more than 9 qualified 
States for fiscal years 2000 and 2001 and 10 qualified States 
for each fiscal year thereafter to assume administrative 
responsibility for all airport grant amounts available under 
this subchapter, except for amounts designated for use at 
primary airports.
  (b) Applications and Selection.--A State wishing to 
participate in the program must submit an application to the 
Secretary. The Secretary shall select a State on the basis of 
its application only after--
          (1) deciding the State has an organization capable of 
        effectively administering a block grant made under this 
        section;
          (2) deciding the State uses a satisfactory airport 
        system planning process;
          (3) deciding the State uses a programming process 
        acceptable to the Secretary;
          (4) finding that the State has agreed to comply with 
        United States Government standard requirements for 
        administering the block [grant;] grant, including 
        Federal environmental requirements or an agreed upon 
        equivalent; and
          (5) finding that the State has agreed to provide the 
        Secretary with program information the Secretary 
        requires.
  (c) Project Analysis and Coordination Requirements.--Any 
Federal agency that must approve, license, or permit a proposed 
action by a participating State shall coordinate and consult 
with the State. The agency shall utilize the environmental 
analysis prepared by the State, provided it is adequate, or 
supplement that analysis as necessary to meet applicable 
Federal requirements.
  [(c)] (d) Safety and Security Needs and Needs of System.--
Before deciding whether a planning process is satisfactory or a 
programming process is acceptable under subsection (b)(2) or 
(b)(3) of this section, the Secretary shall ensure that the 
process provides for meeting critical safety and security needs 
and that the programming process ensures that the needs of the 
national airport system will be addressed in deciding which 
projects will receive money from the Government. In carrying 
out this subsection, the Secretary shall permit a State to use 
the priority system of the State if such system is not 
inconsistent with the national priority system.
  (e) Pilot Program.--The Secretary shall establish a pilot 
program for up to 3 States that do not participate in the 
program established under subsection (a) that is consistent 
with the program under subsection (a).

[Sec. 47129. Resolution of airport-air carrier disputes concerning 
                    airport fees]

Sec. 47129. Resolution of airport-air carrier and foreign air carrier 
                    disputes concerning airport fees

  (a) Authority To Request Secretary's Determination.--
          (1) In general.--The Secretary of Transportation 
        shall issue a determination as to whether a fee imposed 
        upon one or more air carriers or foreign air carriers 
        [(as defined in section 40102 of this title)] (as those 
        terms are defined in section 40102 of this title) by 
        the owner or operator of an airport is reasonable if--
                  (A) a written request for such determination 
                is filed with the Secretary by such owner or 
                operator; or
                  (B) a written complaint requesting such 
                determination is filed with the Secretary by an 
                affected air carrier or foreign air carrier 
                within 60 days after such carrier receives 
                written notice of the establishment or increase 
                of such fee.
          (2) Calculation of fee.--A fee subject to a 
        determination of reasonableness under this section may 
        be calculated pursuant to either a compensatory or 
        residual fee methodology or any combination thereof.
          (3) Secretary not to set fee.--In determining whether 
        a fee is reasonable under this section, the Secretary 
        may only determine whether the fee is reasonable or 
        unreasonable and shall not set the level of the fee.
          (4) Fees imposed by privately-owned airports.--In 
        evaluating the reasonableness of a fee imposed by an 
        airport receiving an exemption under section 47134 of 
        this title, the Secretary shall consider whether the 
        airport has complied with section 47134(c)(4).
  (b) Procedural Regulations.--Not later than 90 days after 
August 23, 1994, the Secretary shall publish in the Federal 
Register final regulations, policy statements, or guidelines 
establishing--
          (1) the procedures for acting upon any written 
        request or complaint filed under subsection (a)(1); and
          (2) the standards or guidelines that shall be used by 
        the Secretary in determining under this section whether 
        an airport fee is reasonable.
  (c) Decisions By Secretary.--The final regulations, policy 
statements, or guidelines required in subsection (b) shall 
provide the following:
          (1) Not more than 120 days after an air carrier or 
        foreign air carrier files with the Secretary a written 
        complaint relating to an airport fee, the Secretary 
        shall issue a final order determining whether such fee 
        is reasonable.
          (2) Within 30 days after such complaint is filed with 
        the Secretary, the Secretary shall dismiss the 
        complaint if no significant dispute exists or shall 
        assign the matter to an administrative law judge; and 
        thereafter the matter shall be handled in accordance 
        with part 302 of title 14, Code of Federal Regulations, 
        or as modified by the Secretary to ensure an orderly 
        disposition of the matter within the 120-day period and 
        any specifically applicable provisions of this section.
          (3) The administrative law judge shall issue a 
        recommended decision within 60 days after the complaint 
        is assigned or within such shorter period as the 
        Secretary may specify.
          (4) If the Secretary, upon the expiration of 120 days 
        after the filing of the complaint, has not issued a 
        final order, the decision of the administrative law 
        judge shall be deemed to be the final order of the 
        Secretary.
          (5) Any party to the dispute may seek review of a 
        final order of the Secretary under this subsection in 
        the Circuit Court of Appeals for the District of 
        Columbia Circuit or the court of appeals in the circuit 
        where the airport which gives rise to the written 
        complaint is located.
          (6) Any findings of fact in a final order of the 
        Secretary under this subsection, if supported by 
        substantial evidence, shall be conclusive if challenged 
        in a court pursuant to this subsection. No objection to 
        such a final order shall be considered by the court 
        unless objection was urged before an administrative law 
        judge or the Secretary at a proceeding under this 
        subsection or, if not so urged, unless there were 
        reasonable grounds for failure to do so.
  (d) Payment Under Protest; Guarantee of Air Carrier and 
Foriegn Air Carrier Access.--
          (1) Payment under protest.--
                  (A) In general.--Any fee increase or newly 
                established fee which is the subject of a 
                complaint that is not dismissed by the 
                Secretary shall be paid by the complainant air 
                carrier or foreign air carrier to the airport 
                under protest.
                  (B) Referral or credit.--Any amounts paid 
                under this subsection by a complainant air 
                carrier or foreign air carrier to the airport 
                under protest shall be subject to refund or 
                credit to the air carrier or foreign air 
                carrier in accordance with directions in the 
                final order of the Secretary within 30 days of 
                such order.
                  (C) Assurance of timely repayment.--In order 
                to assure the timely repayment, with interest, 
                of amounts in dispute determined not to be 
                reasonable by the Secretary, the airport shall 
                obtain a letter of credit, or surety bond, or 
                other suitable credit facility, equal to the 
                amount in dispute that is due during the 120-
                day period established by this section, plus 
                interest, unless the airport and the 
                complainant air carrier agree otherwise.
                  (D) Deadline.--The letter of credit, or 
                surety bond, or other suitable credit facility 
                shall be provided to the Secretary within 20 
                days of the filing of the complaint and shall 
                remain in effect for 30 days after the earlier 
                of 120 days or the issuance of a timely final 
                order by the Secretary determining whether such 
                fee is reasonable.
          (2) Guarantee of air carrier and foreign air carrier  
        access.--Contingent upon an air carrier's or foreign 
        air carrier's compliance with the requirements of 
        paragraph (1) and pending the issuance of a final order 
        by the Secretary determining the reasonableness of a 
        fee that is the subject of a complaint filed under 
        subsection (a)(1)(B), an owner or operator of an 
        airport may not deny an air carrier or foreign air 
        carrier currently providing air service at the airport 
        reasonable access to airport facilities or service, or 
        otherwise interfere with an air carrier's or foreign 
        air carrier's prices, routes, or services, as a means 
        of enforcing the fee.
  (e) Applicability.--This section does not apply to--
          (1) a fee imposed pursuant to a written agreement 
        with air carriers or foreign air carriers using the 
        facilities of an airport;
          (2) a fee imposed pursuant to a financing agreement 
        or covenant entered into prior to August 23, 1994; or
          (3) any other existing fee not in dispute as of 
        August 23, 1994.
  (f) Effect On Existing Agreements.--Nothing in this section 
shall adversely affect--
          (1) the rights of any party under any existing 
        written agreement between an air carrier or foreign air 
        carrier and the owner or operator of an airport; or
          (2) the ability of an airport to meet its obligations 
        under a financing agreement, or covenant, that is in 
        force as of August 23, 1994.
  (g) Definition.--In this section, the term ``fee'' means any 
rate, rental charge, landing fee, or other service charge for 
the use of airport facilities.

           *       *       *       *       *       *       *


Sec. 47131. Annual report

  (a) General Rule.--Not later than [April 1] June 1 of each 
year, the Secretary of Transportation shall submit to Congress 
a report on activities carried out under this subchapter during 
the prior fiscal year. The report shall include--
          [(1) a detailed statement of airport development 
        completed;
          [(2) the status of each project undertaken;
          [(3) the allocation of appropriations;
          [(4) an itemized statement of expenditures and 
        receipts; and]
          (1) a summary of airport development and planning 
        completed;
          (2) a summary of individual grants issued;
          (3) an accounting of discretionary and apportioned 
        funds allocated; and
          (4) the allocation of appropriations; and
          (5) a detailed statement listing airports that the 
        Secretary believes are not in compliance with grant 
        assurances or other requirements with respect to 
        airport lands and including the circumstances of such 
        noncompliance, the timelines for corrective action, and 
        the corrective action the Secretary intends to take to 
        bring the airport sponsor into compliance.
  (b) Special Rule for Listing Noncompliant Airports.--The 
Secretary does not have to conduct an audit or make a final 
determination before including an airport on the list referred 
to in subsection (a)(5).

           *       *       *       *       *       *       *


Sec. 47133. Restriction on use of revenues

  (a) Prohibition.--Local taxes on aviation fuel (except taxes 
in effect on December 30, 1987) or the revenues generated by an 
airport that is the subject of Federal assistance may not be 
expended for any purpose other than the capital or operating 
costs of--
          (1) the airport;
          (2) the local airport system; or
          (3) any other local facility that is owned or 
        operated by the person or entity that owns or operates 
        the airport that is directly and substantially related 
        to the air transportation of passengers or property.
  (b) Exceptions.--
            (1) Subsection (a) shall not apply if a provision 
        enacted not later than September 2, 1982, in a law 
        controlling financing by the airport owner or operator, 
        or a covenant or assurance in a debt obligation issued 
        not later than September 2, 1982, by the owner or 
        operator, provides that the revenues, including local 
        taxes on aviation fuel at public airports, from any of 
        the facilities of the owner or operator, including the 
        airport, be used to support not only the airport but 
        also the general debt obligations or other facilities 
        of the owner or operator.
          (2) In the case of a privately owned airport, 
        subsection (a) shall not apply to the proceeds from the 
        sale of the airport to a public sponsor if--
                  (A) the sale is approved by the Secretary;
                  (B) funding is provided under this title for 
                the public sponsor's acquisition; and
                  (C) an amount equal to the remaining 
                unamortized portion of the original grant, 
                amortized over a 20-year period, is repaid to 
                the Secretary by the private owner for deposit 
                in the Trust Fund for airport acquisitions.
          (3) This subsection shall apply to grants issued on 
        or after October 1, 1996.
  (c) Rule of Construction.--Nothing in this section may be 
construed to prevent the use of a State tax on aviation fuel to 
support a State aviation program or the use of airport revenue 
on or off the airport for a noise mitigation purpose.

           *       *       *       *       *       *       *


Sec. 47136A. Zero emission airport vehicles and infrastructure

  (a) In General.--The Secretary of Transportation shall 
establish a pilot program under which the sponsor of a public-
use airport may use funds made available under section 47117 or 
section 48103 for use at such airports or passenger facility 
revenue (as defined in section 40117(a)(6)) to carry out 
activities associated with the acquisition and operation of 
zero emission vehicles (as defined in section 88.120-94 of 
title 40, Code of Federal Regulations), including the 
construction or modification of infrastructure to facilitate 
the delivery of fuel and services necessary for the use of such 
vehicles. Any use of funds authorized by the preceding sentence 
shall be considered to be an authorized use of funds under 
section 47117 or section 48103, or an authorized use of 
passenger facility revenue (as defined in section 40117(a)(6)), 
as the case may be.
  (b) Location in Air Quality Nonattainment Areas.--
          (1) In general.--A public-use 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))).
          (2) Shortage of candidates.--If the Secretary 
        receives an insufficient number of applications from 
        public-use airports located in such areas, then the 
        Secretary may consider applications from public-use 
        airports that are not located in such areas.
  (c) Selection Criteria.--In selecting from among applicants 
for participation in the 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 
program.
  (d) Federal Share.--Notwithstanding any other provision of 
this subchapter, the Federal share of the costs of a project 
carried out under the program shall be 50 percent.
  (e) Technical Assistance.--
          (1) In general.--The sponsor of a public-use airport 
        carrying out activities funded under the program may 
        not use more than 10 percent of the amounts made 
        available under the program in any fiscal year for 
        technical assistance in carrying out such activities.
          (2) Eligible consortium.--To the maximum extent 
        practicable, participants in the program shall use an 
        eligible consortium (as defined in section 5506 of this 
        title) in the region of the airport to receive 
        technical assistance described in paragraph (1).
  (f) Materials Identifying Best Practices.--The Secretary may 
develop and make available materials identifying best practices 
for carrying out activities funded under the program based on 
projects carried out under section 47136 and other sources.

[Sec. 47137. Airport security program

  [(a) General Authority.--To improve security at public 
airports in the United States, the Secretary of Transportation 
shall carry out not less than one project to test and evaluate 
innovative aviation security systems and related technology.
  [(b) Priority.--In carrying out this section, the Secretary 
shall give the highest priority to a request from an eligible 
sponsor for a grant to undertake a project that--
          [(1) evaluates and tests the benefits of innovative 
        aviation security systems or related technology, 
        including explosives detection systems, for the purpose 
        of improving aviation and aircraft physical security, 
        access control, and passenger and baggage screening; 
        and
          [(2) provides testing and evaluation of airport 
        security systems and technology in an operational, 
        testbed environment.
  [(c) Matching Share.--Notwithstanding section 47109, the 
United States Government's share of allowable project costs for 
a project under this section shall be 100 percent.
  [(d) Terms and Conditions.--The Secretary may establish such 
terms and conditions as the Secretary determines appropriate 
for carrying out a project under this section, including terms 
and conditions relating to the form and content of a proposal 
for a project, project assurances, and schedule of payments.
  [(e) Administration.--The Secretary, in cooperation with the 
Secretary of Homeland Security, shall administer the program 
authorized by this section.
  [(f) Eligible Sponsor Defined.--In this section, the term 
``eligible sponsor'' means a nonprofit corporation composed of 
a consortium of public and private persons, including a sponsor 
of a primary airport, with the necessary engineering and 
technical expertise to successfully conduct the testing and 
evaluation of airport and aircraft related security systems.
  [(g) Authorization of Appropriations.--Of the amounts made 
available to the Secretary under section 47115 in a fiscal 
year, the Secretary shall make available not less than 
$5,000,000 for the purpose of carrying out this section.]

           *       *       *       *       *       *       *


Sec. 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] 47102(3)(K) or 47102(3)(L) 
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,] 40117(a)(3)(G), 47102(3)(K), or 47102(3)(L), 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).

           *       *       *       *       *       *       *


Sec. 47140A. Reduction of emissions from airport power sources

  (a) In General.--The Secretary of Transportation shall 
establish a program under which the sponsor of each airport 
eligible to receive grants under section 48103 is encouraged to 
assess the airport's energy requirements, including heating and 
cooling, base load, back-up power, and power for on-road 
airport vehicles and ground support equipment, in order to 
identify opportunities to reduce harmful emissions and increase 
energy efficiency at the airport.
  (b) Grants.--The Secretary may make grants under section 
48103 to assist airport sponsors that have completed the 
assessment described in subsection (a) to acquire or construct 
equipment, including hydrogen equipment and related 
infrastructure, that will reduce harmful emissions and increase 
energy efficiency at the airport. To be eligible for such a 
grant, the sponsor of such an airport shall submit an 
application to the Secretary, at such time, in such manner, and 
containing such information as the Secretary may require.

Sec. 47143. Environmental mitigation demonstration pilot program

  (a) In General.--The Secretary of Transportation shall carry 
out a pilot program involving not more than 6 projects at 
public-use airports under which the Secretary may make grants 
to sponsors of such airports from funds apportioned under 
paragraph 47117(e)(1)(A) for use at such airports for 
environmental mitigation demonstration projects that will 
measurably reduce or mitigate aviation impacts on noise, air 
quality or water quality in the vicinity of the airport. 
Notwithstanding any other provision of this subchapter, an 
environmental mitigation demonstration project approved under 
this section shall be treated as eligible for assistance under 
this subchapter.
  (b) Participation in Pilot Program.--A public-use airport 
shall be eligible for participation in the pilot.
  (c) Selection Criteria.--In selecting from among applicants 
for participation in the pilot program, the Secretary may give 
priority consideration to environmental mitigation 
demonstration projects that--
          (1) will achieve the greatest reductions in aircraft 
        noise, airport emissions, or airport water quality 
        impacts either on an absolute basis, or on a per-
        dollar-of-funds expended basis; and
          (2) will be implemented by an eligible consortium.
  (d) Federal Share.--Notwithstanding any other provision of 
this subchapter, the United States Government's share of the 
costs of a project carried out under this section shall be 50 
percent.
  (e) Maximum Amount.--Not more than $2,500,000 may be made 
available by the Secretary in grants under this section for any 
single project.
  (f) Identifying Best Practices.--The Administrator may 
develop and publish information identifying best practices for 
reducing or mitigating aviation impacts on noise, air quality, 
or water quality in the vicinity of airports, based on the 
projects carried out under the pilot program.
  (g) Definitions.--In this section:
          (1) Eligible consortium.--The term ``eligible 
        consortium'' means a consortium that comprises 2 or 
        more of the following entities:
                  (A) Businesses operating in the United 
                States.
                  (B) Public or private educational or research 
                organizations located in the United States.
                  (C) Entities of State or local governments in 
                the United States.
                  (D) Federal laboratories.
          (2) Environmental mitigation demonstration project.--
        The term ``environmental mitigation demonstration 
        project'' means a project that--
                  (A) introduces new conceptual environmental 
                mitigation techniques or technology with 
                associated benefits, which have already been 
                proven in laboratory demonstrations;
                  (B) proposes methods for efficient adaptation 
                or integration of new concepts to airport 
                operations; and
                  (C) will demonstrate whether new techniques 
                or technology for environmental mitigation 
                identified in research are--
                          (i) practical to implement at or near 
                        multiple public use airports; and
                          (ii) capable of reducing noise, 
                        airport emissions, or water quality 
                        impacts in measurably significant 
                        amounts.

           *       *       *       *       *       *       *


          SUBCHAPTER II--SURPLUS PROPERTY FOR PUBLIC AIRPORTS

Sec. 47151. Authority to transfer an interest in surplus property

  (a) General Authority.--Subject to sections 47152 and 47153 
of this title, a department, agency, or instrumentality of the 
executive branch of the United States Government or a wholly 
owned Government corporation may convey to a State, political 
subdivision of a State, or tax-supported organization any 
interest in surplus property--
          (1) that the Secretary of Transportation decides is--
                  (A) desirable for developing, improving, 
                operating, or maintaining a public airport (as 
                defined in section 47102 of this title);
                  (B) reasonably necessary to fulfill the 
                immediate and foreseeable future requirements 
                for developing, improving, operating, or 
                maintaining a public airport; or
                  (C) needed for developing sources of revenue 
                from nonaviation businesses at a public 
                airport; and
          (2) if the Administrator of General Services approves 
        the conveyance and decides the interest is not best 
        suited for industrial use.
  (b) Ensuring Compliance.--Only the Secretary may ensure 
compliance with an instrument conveying an interest in surplus 
property under this subchapter. The Secretary may amend the 
instrument to correct the instrument or to make the conveyance 
comply with law.
  (c) Disposing of Interests Not Conveyed Under This 
Subchapter.--An interest in surplus property that could be used 
at a public airport but that is not conveyed under this 
subchapter shall be disposed of under other applicable law.
  (d) Waiver of Condition.--Before the Secretary may waive any 
condition imposed on an interest in surplus property conveyed 
under subsection (a) that such interest be used for an 
aeronautical purpose, the Secretary must provide notice to the 
public not less than 30 days before waiving such condition.
  (e) Requests by Public Agencies.--Except with respect to a 
request made by another department, agency, or instrumentality 
of the executive branch of the United States Government, such a 
department, agency, or instrumentality shall give priority 
consideration to a request made by a public agency (as defined 
in section 47102) for surplus property described in subsection 
(a) [(other than real property that is subject to section 2687 
of title 10, section 201 of the Defense Authorization 
Amendments and Base Closure and Realignment Act (10 U.S.C. 2687 
note),] or section 2905 of the Defense Base Closure and 
Realignment Act of 1990 (10 U.S.C. 2687 note)) for use at a 
public airport.

           *       *       *       *       *       *       *


           SUBCHAPTER III--AVIATION DEVELOPMENT STREAMLINING

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.] project, or to conduct 
special environmental studies related to a federally funded 
airport project or for special studies or reviews to support 
approved noise compatibility measures in a Part 150 program or 
environmental mitigation in a Federal Aviation Administration 
Record of Decision or Finding of No Significant Impact.
  (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. 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.] 2001 and 2004 Airport Capacity 
        Benchmark Reports or of the most recent Benchmark 
        report, Future Airport Capacity Task Report, or other 
        comparable FAA report.
          (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.
          (7) Joint use airport.--The term ``joint use 
        airport'' means an airport owned by the United States 
        Department of Defense, at which both military and 
        civilian aircraft make shared use of the airfield.

                           CHAPTER 475. NOISE

                     SUBCHAPTER I--NOISE ABATEMENT

Sec. 47504. Noise compatibility programs

  (a) Submissions.--(1) An airport operator that submitted a 
noise exposure map and related information under section 
47503(a) of this title may submit a noise compatibility program 
to the Secretary of Transportation after--
          (A) consulting with public agencies and planning 
        authorities in the area surrounding the airport, United 
        States Government officials having local responsibility 
        for the airport, and air carriers using the airport; 
        and
          (B) notice and an opportunity for a public hearing.
  (2) A program submitted under paragraph (1) of this 
subsection shall state the measures the operator has taken or 
proposes to take to reduce existing noncompatible uses and 
prevent introducing additional noncompatible uses in the area 
covered by the map. The measures may include--
          (A) establishing a preferential runway system;
          (B) restricting the use of the airport by a type or 
        class of aircraft because of the noise characteristics 
        of the aircraft;
          (C) constructing barriers and acoustical shielding 
        and soundproofing public buildings;
          (D) using flight procedures to control the operation 
        of aircraft to reduce exposure of individuals to noise 
        in the area surrounding the airport; [and]
          (E) acquiring land, air rights, easements, 
        development rights, and other interests to ensure that 
        the property will be used in ways compatible with 
        airport [operations.] operations; and
          (F) joint comprehensive land use planning including 
        master plans, traffic studies, environmental evaluation 
        and economic and feasibility studies, with neighboring 
        local jurisdictions undertaking community redevelopment 
        in the area where the land or other property interest 
        acquired by the airport operator pursuant to this 
        subsection is located, to encourage and enhance 
        redevelopment opportunities that reflect zoning and 
        uses that will prevent the introduction of additional 
        incompatible uses and enhance redevelopment potential.
  (b) Approvals.--(1) The Secretary shall approve or disapprove 
a program submitted under subsection (a) of this section 
(except as the program is related to flight procedures referred 
to in subsection (a)(2)(D) of this section) not later than 180 
days after receiving it. The Secretary shall approve the 
program (except as the program is related to flight procedures 
referred to in subsection (a)(2)(D)) if the program--
          (A) does not place an unreasonable burden on 
        interstate or foreign commerce;
          (B) is reasonably consistent with achieving the goal 
        of reducing noncompatible uses and preventing the 
        introduction of additional noncompatible uses; and
          (C) provides for necessary revisions because of a 
        revised map submitted under section 47503(b) of this 
        title.
  (2) A program (except as the program is related to flight 
procedures referred to in subsection (a)(2)(D) of this section) 
is deemed to be approved if the Secretary does not act within 
the 180-day period.
  (3) The Secretary shall submit any part of a program related 
to flight procedures referred to in subsection (a)(2)(D) of 
this section to the Administrator of the Federal Aviation 
Administration. The Administrator shall approve or disapprove 
that part of the program.
  (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.
  (c) Grants.--(1) The Secretary may incur obligations to make 
grants from amounts available under section 48103 of this title 
to carry out a project under a part of a noise compatibility 
program approved under subsection (b) of this section. A grant 
may be made to--
          (A) an airport operator submitting the program; and
          (B) a unit of local government in the area 
        surrounding the airport, if the Secretary decides the 
        unit is able to carry out the project.
  (2) Soundproofing and acquisition of certain residential 
buildings and properties.--The Secretary may incur obligations 
to make grants from amounts made available under section 48103 
of this title--
          (A) for projects to soundproof residential 
        buildings--
                  (i) if the airport operator received approval 
                for a grant for a project to soundproof 
                residential buildings pursuant to section 
                301(d)(4)(B) of the Airport and Airway Safety 
                and Capacity Expansion Act of 1987;
                  (ii) if the airport operator submits updated 
                noise exposure contours, as required by the 
                Secretary; and
                  (iii) if the Secretary determines that the 
                proposed projects are compatible with the 
                purposes of this chapter;
          (B) to an airport operator and unit of local 
        government referred to in paragraph (1)(A) or (1)(B) of 
        this subsection to soundproof residential buildings 
        located on residential properties, and to acquire 
        residential properties, at which noise levels are not 
        compatible with normal operations of an airport--
                  (i) if the airport operator amended an 
                existing local aircraft noise regulation during 
                calendar year 1993 to increase the maximum 
                permitted noise levels for scheduled air 
                carrier aircraft as a direct result of 
                implementation of revised aircraft noise 
                departure procedures mandated for aircraft 
                safety purposes by the Administrator of the 
                Federal Aviation Administration for 
                standardized application at airports served by 
                scheduled air carriers;
                  (ii) if the airport operator submits updated 
                noise exposure contours, as required by the 
                Secretary; and
                  (iii) if the Secretary determines that the 
                proposed projects are compatible with the 
                purposes of this chapter;
          (C) to an airport operator and unit of local 
        government referred to in paragraph (1)(A) or (1)(B) of 
        this subsection to carry out any part of a program 
        developed before February 18, 1980, or before 
        implementing regulations were prescribed, if the 
        Secretary decides the program is substantially 
        consistent with reducing existing noncompatible uses 
        and preventing the introduction of additional 
        noncompatible uses and the purposes of this chapter 
        will be furthered by promptly carrying out the program;
          (D) to an airport operator and unit of local 
        government referred to in paragraph (1)(A) or (1)(B) of 
        this subsection to soundproof a building in the noise 
        impact area surrounding the airport that is used 
        primarily for educational or medical purposes and that 
        the Secretary decides is adversely affected by airport 
        noise; and
          (E) to an airport operator of a congested airport (as 
        defined in section 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.
  (3) An airport operator may agree to make a grant made under 
paragraph (1)(A) of this subsection available to a public 
agency in the area surrounding the airport if the Secretary 
decides the agency is able to carry out the project.
  (4) The Government's share of a project for which a grant is 
made under this subsection is the greater of--
          (A) 80 percent of the cost of the project; or
          (B) the Government's share that would apply if the 
        amounts available for the project were made available 
        under subchapter I of chapter 471 of this title for a 
        project at the airport.
  (5) The provisions of subchapter I of chapter 471 of this 
title related to grants apply to a grant made under this 
chapter, except--
          (A) section 47109(a) and (b) of this title; and
          (B) any provision that the Secretary decides is 
        inconsistent with, or unnecessary to carry out, this 
        chapter.
  (6) Aircraft noise primarily caused by military aircraft.--
The Secretary may make a grant under this subsection for a 
project even if the purpose of the project is to mitigate the 
effect of noise primarily caused by military aircraft at an 
airport.
  (d) Government Relief From Liability.--The Government is not 
liable for damages from aviation noise because of action taken 
under this section.
  (e) Grants for Assessment of Flight Procedures.--
          (1) The Secretary is authorized in accordance with 
        subsection (c)(1) to make a grant to an airport 
        operator to assist in completing environmental review 
        and assessment activities for proposals to implement 
        flight procedures that have been approved for airport 
        noise compatibility planning purposes under subsection 
        (b).
          (2) The Administrator of the Federal Aviation 
        Administration may accept funds from an airport 
        sponsor, including funds provided to the sponsor under 
        paragraph (1), 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 proposals to 
        implement flight procedures submitted and approved for 
        airport noise compatibility planning purposes in 
        accordance with this section. Funds received under this 
        authority shall not be subject to the procedures 
        applicable to the receipt of gifts by the 
        Administrator.

             SUBCHAPTER II--NATIONAL AVIATION NOISE POLICY

47531. Penalties for violating sections 47528-47530

  A person violating section 47528, [47529, or 47530] 47529, 
47530, or 47534 of this title or a regulation prescribed under 
any of those sections is subject to the same civil penalties 
and procedures under chapter 463 of this title as a person 
violating section 44701(a) or (b) or any of sections 44702-
44716 of this title.47532. Judicial review
  An action taken by the Secretary of Transportation under any 
of sections [47528-47531] 47528 through 47531 or 47534 of this 
title is subject to judicial review as provided under section 
46110 of this title.

Sec. 47534. Prohibition on operating certain aircraft weighing 75,000 
                    pounds or less not complying with Stage 3 noise 
                    levels

  (a) Prohibition.--Except as provided in subsection (b), (c), 
or (d), a person may not operate a civil subsonic turbojet with 
a maximum weight of 75,000 pounds or less to or from an airport 
in the United States unless the Secretary of Transportation 
finds that the aircraft complies with stage 3 noise levels.
  (b) Exception.--Subsection (a) shall not apply to aircraft 
operated only outside the 48 contiguous States.
  (c) Opt-Out.--Subsection (a) shall not apply at an airport 
where the airport operator has notified the Secretary that it 
wants to continue to permit the operation of civil subsonic 
turbojets with a maximum weight of 75,000 pounds or less that 
do not comply with stage 3 noise levels. The Secretary shall 
post the notices received under this subsection on its website 
or in another place easily accessible to the public.
  (d) Limitation.--The Secretary shall permit a person to 
operate Stage 1 and Stage 2 aircraft with a maximum weight of 
75,000 pounds or less to or from an airport in the contiguous 
48 States in order--
          (1) to sell, lease, or use the aircraft outside the 
        48 contiguous States;
          (2) to scrap the aircraft;
          (3) to obtain modifications to the aircraft to meet 
        stage 3 noise levels;
          (4) to perform scheduled heavy maintenance or 
        significant modifications on the aircraft at a 
        maintenance facility located in the contiguous 48 
        states;
          (5) to deliver the aircraft to an operator leasing 
        the aircraft from the owner or return the aircraft to 
        the lessor;
          (6) to prepare or park or store the aircraft in 
        anticipation of any of the activities described in 
        paragraphs (1) through (5); or
          (7) to divert the aircraft to an alternative airport 
        in the 48 contiguous States on account of weather, 
        mechanical, fuel air traffic control or other safety 
        reasons while conducting a flight in order to perform 
        any of the activities described in paragraphs (1) 
        through (6).
  (e) Statutory Construction.--Nothing in the section may be 
construed as interfering with, nullifying, or otherwise 
affecting determinations made by the Federal Aviation 
Administration, or to be made by the Administration, with 
respect to applications under part 161 of title 14, Code of 
Federal Regulations, that were pending on the date of enactment 
of the Aircraft Noise Reduction Act of 2006.

           *       *       *       *       *       *       *


                           PART C--FINANCING

        CHAPTER 481 AIRPORT AND AIRWAY TRUST FUND AUTHORIZATIONS

Sec. 48101. Air navigation facilities and equipment

  (a) General Authorization of Appropriations.--Not more than a 
total of the following amounts may be appropriated to the 
Secretary of Transportation out of the Airport and Airway Trust 
Fund established under section 9502 of the Internal Revenue 
Code of 1986 (26 U.S.C. 9502) to acquire, establish, and 
improve air navigation facilities under section 44502(a)(1)(A) 
of this title:
          [(1) $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;
          [(4) $3,110,000,000 for fiscal year 2007; and
          [(5) $2,742,095,000 for fiscal year 2009.]
          (1) $3,500,000,000 for fiscal year 2010, of which 
        $500,000,000 is derived from the Air Traffic Control 
        System Modernization Account of the Airport and Airways 
        Trust Fund; and
          (2) $3,600,000,000 for fiscal year 2011, of which 
        $500,000,000 is derived from the Air Traffic Control 
        System Modernization Account of the Airport and Airways 
        Trust Fund.
  (b) Availability of Amounts.--Amounts appropriated under this 
section remain available until expended.
  (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.
  (f) Automated Surface Observation System/Automated Weather 
Observing System Upgrade.--Of the amounts appropriated under 
subsection (a), such sums as may be necessary may be used for 
the implementation and use of upgrades to the current automated 
surface observation system/automated weather observing system, 
if the upgrade is successfully demonstrated.
  (g) Life-Cycle Cost Estimates.--The Administrator of the 
Federal Aviation Administration shall establish life-cycle cost 
estimates for any air traffic control modernization project the 
total life-cycle costs of which equal or exceed $50,000,000.
  (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. 48102. Research and development

  [(a) Authorization of Appropriations.--Not more than the 
following amounts may be appropriated to the Secretary of 
Transportation out of the Airport and Airway Trust Fund 
established under section 9502 of the Internal Revenue Code of 
1986 (26 U.S.C. 9502) for conducting civil aviation research 
and development under sections 44504, 44505, 44507, 44509, and 
44511-44513 of this title:
          [(1) for fiscal year 1995--
                  [(A) $7,673,000 for management and analysis 
                projects and activities;
                  [(B) $80,901,000 for capacity and air traffic 
                management technology projects and activities;
                  [(C) $39,242,000 for communications, 
                navigation, and surveillance projects and 
                activities;
                  [(D) $2,909,000 for weather projects and 
                activities;
                  [(E) $8,660,000 for airport technology 
                projects and activities;
                  [(F) $51,004,000 for aircraft safety 
                technology projects and activities;
                  [(G) $36,604,000 for system security 
                technology projects and activities;
                  [(H) $26,484,000 for human factors and 
                aviation medicine projects and activities;
                  [(I) $8,124,000 for environment and energy 
                projects and activities; and
                  [(J) $5,199,000 for innovative/cooperative 
                research projects and activities;
          [(2) for fiscal year 1996--
                  [(A) $8,056,000 for management and analysis 
                projects and activities;
                  [(B) $84,946,000 for capacity and air traffic 
                management technology projects and activities;
                  [(C) $41,204,000 for communications, 
                navigation, and surveillance projects and 
                activities;
                  [(D) $3,054,000 for weather projects and 
                activities;
                  [(E) $9,093,000 for airport technology 
                projects and activities;
                  [(F) $53,554,000 for aircraft safety 
                technology projects and activities;
                  [(G) $38,434,000 for system security 
                technology projects and activities;
                  [(H) $27,808,000 for human factors and 
                aviation medicine projects and activities;
                  [(I) $8,532,000 for environment and energy 
                projects and activities; and
                  [(J) $5,459,000 for innovative/cooperative 
                research projects and activities;
          [(3) for fiscal year 1997--
                  [(A) $13,660,000 for system development and 
                infrastructure projects and activities;
                  [(B) $34,889,000 for capacity and air traffic 
                management technology projects and activities;
                  [(C) $19,000,000 for communications, 
                navigation, and surveillance projects and 
                activities;
                  [(D) $13,000,000 for weather projects and 
                activities;
                  [(E) $5,200,000 for airport technology 
                projects and activities;
                  [(F) $36,504,000 for aircraft safety 
                technology projects and activities;
                  [(G) $57,055,000 for system security 
                technology projects and activities;
                  [(H) $23,504,000 for human factors and 
                aviation medicine projects and activities;
                  [(I) $3,600,000 for environment and energy 
                projects and activities; and
                  [(J) $2,000,000 for innovative/cooperative 
                research projects and activities;
          [(4) for fiscal year 1998, $226,800,000, including--
                  [(A) $16,379,000 for system development and 
                infrastructure projects and activities;
                  [(B) $27,089,000 for capacity and air traffic 
                management technology projects and activities;
                  [(C) $23,362,000 for communications, 
                navigation, and surveillance projects and 
                activities;
                  [(D) $16,600,000 for weather projects and 
                activities;
                  [(E) $7,854,000 for airport technology 
                projects and activities;
                  [(F) $49,202,000 for aircraft safety 
                technology projects and activities;
                  [(G) $53,759,000 for system security 
                technology projects and activities;
                  [(H) $26,550,000 for human factors and 
                aviation medicine projects and activities;
                  [(I) $2,891,000 for environment and energy 
                projects and activities; and
                  [(J) $3,114,000 for innovative/cooperative 
                research projects and activities, of which 
                $750,000 shall be for carrying out the grant 
                program established under subsection (h);
          [(5) for fiscal year 1999, $229,673,000;
          [(6) for fiscal year 2000, $224,000,000, including--
                  [(A) $17,269,000 for system development and 
                infrastructure projects and activities;
                  [(B) $33,042,500 for capacity and air traffic 
                management technology projects and activities;
                  [(C) $11,265,400 for communications, 
                navigation, and surveillance projects and 
                activities;
                  [(D) $19,300,000 for weather projects and 
                activities;
                  [(E) $6,358,200 for airport technology 
                projects and activities;
                  [(F) $44,457,000 for aircraft safety 
                technology projects and activities;
                  [(G) $53,218,000 for system security 
                technology projects and activities;
                  [(H) $26,207,000 for human factors and 
                aviation medicine projects and activities;
                  [(I) $3,481,000 for environment and energy 
                projects and activities; and
                  [(J) $2,171,000 for innovative/cooperative 
                research projects and activities, of which 
                $750,000 shall be for carrying out subsection 
                (h);
          [(7) for fiscal year 2001, $237,000,000;
          [(8) for fiscal year 2002, $249,000,000; and
          [(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;
                  [(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;
                  v(C) $28,451,000 for Human Factors and 
                Aeromedical Research;
                  v(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; and
          [(13) $171,000,000 for fiscal year 2009.]
  (a) In General.--Not more than the following amounts may be 
appropriated to the Secretary of Transportation out of the 
Airport and Airway Trust Fund established under section 9502 of 
the Internal Revenue Code of 1986 (26 U.S.C. 9502) for 
conducting civil aviation research and development under 
sections 44504, 44505, 44507, 44509, and 44511 through 44513 of 
this title:
          (1) $200,000,000 for fiscal year 2010.
          (2) $206,000,000 for fiscal year 2011.
  (b) Research Priorities.--(1) The Administrator shall 
consider the advice and recommendations of the research 
advisory committee established by section 44508 of this title 
in establishing priorities among major categories of research 
and development activities carried out by the Federal Aviation 
Administration.
  (2) At least 15 percent of the amount appropriated under 
subsection (a) of this section shall be for long-term research 
projects.
  (3) At least 3 percent of the amount appropriated under 
subsection (a) of this section shall be available to the 
Administrator of the Federal Aviation Administration to make 
grants under section 44511 of this title.
  [(c) Transfers Between Categories.--(1) Not more than 10 
percent of the net amount authorized for a category of projects 
and activities in a fiscal year under subsection (a) of this 
section may be transferred to or from that category in that 
fiscal year.
  [(2) The Secretary may transfer more than 10 percent of an 
authorized amount to or from a category only after--
          [(A) submitting a written explanation of the proposed 
        transfer to the Committees on Science and 
        Appropriations of the House of Representatives and the 
        Committees on Commerce, Science, and Transportation and 
        Appropriations of the Senate; and
          [(B) 30 days have passed after the explanation is 
        submitted or each Committee notifies the Secretary in 
        writing that it does not object to the proposed 
        transfer.
  [(d) Airport Capacity Research and Development.--(1) Of the 
amounts made available under subsection (a) of this section, at 
least $25,000,000 may be appropriated each fiscal year for 
research and development under section 44505(a) and (c) of this 
title on preserving and enhancing airport capacity, including 
research and development on improvements to airport design 
standards, maintenance, safety, operations, and environmental 
concerns.
  [(2) The Administrator shall submit to the Committees on 
Science and Transportation and Infrastructure of the House of 
Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate a report on expenditures made 
under paragraph (1) of this subsection for each fiscal year. 
The report shall be submitted not later than 60 days after the 
end of the fiscal year.
  [(e) Air Traffic Controller Performance Research.--Necessary 
amounts may be appropriated to the Secretary out of amounts in 
the Fund available for research and development to conduct 
research under section 44506(a) and (b) of this title.
  [(f) Availability of Amounts.--Amounts appropriated under 
subsection (a) of this section remain available until expended.
  [(h)  Research Grants Program Involving Undergraduate 
Students.--
          [(1) Establishment.--The Administrator of the Federal 
        Aviation Administration shall establish a program to 
        utilize undergraduate and technical colleges, including 
        Historically Black Colleges and Universities and 
        Hispanic Serving Institutions, in research on subjects 
        of relevance to the Federal Aviation Administration. 
        Grants may be awarded under this subsection for--
                  [(A) research projects to be carried out at 
                primarily undergraduate institutions and 
                technical colleges;
                  [(B) research projects that combine research 
                at primarily undergraduate institutions and 
                technical colleges with other research 
                supported by the Federal Aviation 
                Administration;
                  [(C) research on future training requirements 
                on projected changes in regulatory requirements 
                for aircraft maintenance and power plant 
                licensees; or
                  [(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.
          [(2) Notice of criteria.--Within 6 months after the 
        date of the enactment of the FAA Research, Engineering, 
        and Development Authorization Act of 1998, the 
        Administrator of the Federal Aviation Administration 
        shall establish and publish in the Federal Register 
        criteria for the submittal of proposals for a grant 
        under this subsection, and for the awarding of such 
        grants.
          [(3) Principal criteria.--The principal criteria for 
        the awarding of grants under this subsection shall be--
                  [(A) the relevance of the proposed research 
                to technical research needs identified by the 
                Federal Aviation Administration;
                  [(B) the scientific and technical merit of 
                the proposed research; and
                  [(C) the potential for participation by 
                undergraduate students in the proposed 
                research.
          [(4) Competitive, merit-based evaluation.--Grants 
        shall be awarded under this subsection on the basis of 
        evaluation of proposals through a competitive, merit-
        based process.]
  (c) Research Grants Program Involving Undergraduate 
Students.--The Administrator of the Federal Aviation 
Administration shall establish a program to utilize 
undergraduate and technical colleges, including Historically 
Black Colleges and Universities, Hispanic Serving Institutions, 
tribally controlled colleges and universities, and Alaska 
Native and Native Hawaiian serving institutions in research on 
subjects of relevance to the Federal Aviation Administration. 
Grants may be awarded under this subsection for--
          (1) research projects to be carried out at primarily 
        undergraduate institutions and technical colleges;
          (2) research projects that combine research at 
        primarily undergraduate institutions and technical 
        colleges with other research supported by the Federal 
        Aviation Administration;
          (3) research on future training requirements on 
        projected changes in regulatory requirements for 
        aircraft maintenance and power plant licensees; or
          (4) research on the impact of new technologies and 
        procedures, particularly those related to aircraft 
        flight deck and air traffic management functions, and 
        on training requirements for pilots and air traffic 
        controllers.

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

    The total amounts which shall be available after September 
30, 2003, to the Secretary of Transportation out of the Airport 
and Airway Trust Fund established under section 9502 of the 
Internal Revenue Code of 1986 (26 U.S.C. 9502) to make grants 
for airport planning and airport development under section 
47104 of this title, airport noise compatibility planning under 
section 47505(a)(2) of this title, and carrying out noise 
compatibility programs under section 47504(c) of this title 
shall be--
            [(1) $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;
            [(4) $3,700,000,000 for fiscal year 2007;
            [(5) $3,675,000,000 for fiscal year 2008; and
            [(6) $3,900,000,000 for fiscal year 2009.]
          (1) $4,000,000,000 for fiscal year 2010; and
          (2) $4,100,000,000 for fiscal year 2011.
Such sums shall remain available until expended.

           *       *       *       *       *       *       *


[Sec. 48105. Weather reporting services

  [To reimburse the Secretary of Commerce for the cost incurred 
by the National Oceanic and Atmospheric Administration of 
providing weather reporting services to the Federal Aviation 
Administration, the Secretary of Transportation may expend from 
amounts available under section 48104 of this title not more 
than the following amounts:
          [(1) for the fiscal year ending September 30, 1993, 
        $35,596,000.
          [(2) for the fiscal year ending September 30, 1994, 
        $37,800,000.
          [(3) for the fiscal year ending September 30, 1995, 
        $39,000,000.]

Sec. 48105. Airport programs administrative expenses

  Of the amount made available under section 48103 of this 
title, the following may be available for administrative 
expenses relating to the Airport Improvement Program, passenger 
facility charge approval and oversight, national airport system 
planning, airport standards development and enforcement, 
airport certification, airport-related environmental activities 
(including legal services), and other airport-related 
activities (including airport technology research), to remain 
available until expended--
          (1) for fiscal year 2010, $94,000,000; and
          (2) for fiscal year 2011, $98,000,000.

           *       *       *       *       *       *       *


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] 2011 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,] 2011, 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] 2011 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.

                        PART D--PUBLIC AIRPORTS

             CHAPTER 491. METROPOLITAN WASHINGTON AIRPORTS

[Sec. 49108. Limitations

  [After September 30, 2009, the Secretary of Transportation 
may not approve an application of the Metropolitan Washington 
Airports Authority--
          [(1) for an airport development project grant under 
        subchapter I of chapter 471 of this title; or
          [(2) to impose a passenger facility fee under section 
        40117 of this title.]

          VISION 100--CENTURY OF AVIATION REAUTHORIZATION ACT

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, 
[2009,] 2011, 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. 406. CODE-SHARING PILOT PROGRAM.

    (a) In General.--The Secretary of Transportation shall 
establish a pilot program under which the Secretary [may] shall 
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. 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.] September 30, 2011.

           *       *       *       *       *       *       *


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] $1,000,000 for each of fiscal years 2008 through 2012 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 strategic and cross-
agency 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''). The office shall 
be headed by a Director, who shall report to the Chief NextGen 
Officer appointed or designated under section 302(a) of the FAA 
Air Transportation Modernization and Safety Improvement Act.
  (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)(A) 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.
                  (B) The Administrator, the Secretary of 
                Defense, the Administrator of the National 
                Aeronautics and Space Administration, the 
                Secretary of Commerce, the Secretary of 
                Homeland Security, and the head of any other 
                Department or Federal agency from which the 
                Secretary of Transportation requests assistance 
                under subparagraph (A) shall designate an 
                implementation office to be responsible for--
                          (i) carrying out the Department or 
                        agency's Next Generation Air 
                        Transportation System implementation 
                        activities with the Office;
                          (ii) liaison and coordination with 
                        other Departments and agencies involved 
                        in Next Generation Air Transportation 
                        System activities; and
                          (iii) managing all Next Generation 
                        Air Transportation System programs for 
                        the Department or agency, including 
                        necessary budgetary and staff 
                        resources, including, for the Federal 
                        Aviation Administration, those projects 
                        described in section 44501(b)(5) of 
                        title 49, United States Code).
                  (C) The head of any such Department or agency 
                shall ensure that--
                          (i) the Department's or agency's Next 
                        Generation Air Transportation System 
                        responsibilities are clearly 
                        communicated to the designated office; 
                        and
                          (ii) the performance of supervisory 
                        personnel in that office in carrying 
                        out the Department's or agency's Next 
                        Generation Air Transportation System 
                        responsibilities is reflected in their 
                        annual performance evaluations and 
                        compensation decisions.
                  (D)(i) Within 6 months after the date of 
                enactment of the FAA Air Transportation 
                Modernization and Safety Improvement Act, the 
                head of each such Department or agency shall 
                execute a memorandum of understanding with the 
                Office and with the other Departments and 
                agencies participating in the Next Generation 
                Air Transportation System project that--
                          (I) describes the respective 
                        responsibilities of each such 
                        Department and agency, including 
                        budgetary commitments; and
                          (II) the budgetary and staff 
                        resources committed to the project.
                  (ii) The memorandum shall be revised as 
                necessary to reflect any changes in such 
                responsibilities or commitments and be 
                reflected in each Department or agency's budget 
                request.
          (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] 
        implementation plan 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
                  (D) a schedule of rulemakings required to 
                issue regulations and guidelines for 
                implementation of the Next Generation Air 
                Transportation System within a timeframe 
                consistent with the integrated plan; and
          (4) a description of the operational concepts and key 
        technologies to meet the system performance 
        requirements for all system [users] users, an 
        implementation plan, and a timeline and anticipated 
        expenditures needed to develop and deploy the system to 
        meet the vision for 2025.
Within 6 months after the date of enactment of the FAA Air 
Transportation Modernization and Safety Improvement Act, the 
Administrator shall develop the implementation plan described 
in paragraph (3) of this subsection and shall update it 
annually thereafter.
  (c) Goals.--The Next Generation Air Transportation System 
shall--
          (1) improve the level of safety, security, 
        efficiency, quality, and affordability of the National 
        Airspace System and aviation services;
          (2) take advantage of data from emerging ground-based 
        and space-based communications, navigation, and 
        surveillance technologies;
          (3) integrate data streams from multiple agencies and 
        sources to enable situational awareness and seamless 
        global operations for all appropriate users of the 
        system, including users responsible for civil aviation, 
        homeland security, and national security;
          (4) leverage investments in civil aviation, homeland 
        security, and national security and build upon current 
        air traffic management and infrastructure initiatives 
        to meet system performance requirements for all system 
        users;
          (5) be scalable to accommodate and encourage 
        substantial growth in domestic and international 
        transportation and anticipate and accommodate 
        continuing technology upgrades and advances;
          (6) accommodate a wide range of aircraft operations, 
        including airlines, air taxis, helicopters, general 
        aviation, and unmanned aerial vehicles; and
          (7) take into consideration, to the greatest extent 
        practicable, design of airport approach and departure 
        flight paths to reduce exposure of noise and emissions 
        pollution on affected residents.
  (d) Reports.--The Administrator of the Federal Aviation 
Administration shall transmit to the Committee on Commerce, 
Science, and Transportation in the Senate and the Committee on 
Transportation and Infrastructure and the Committee on Science 
in the House of Representatives--
          (1) not later than 1 year after the date of enactment 
        of this Act, the integrated plan required in subsection 
        (b); and
          (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.] 2011.

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.] Secretary and shall meet at least 
once each quarter.
  (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.

             NATIONAL PARKS AIR TOUR MANAGEMENT ACT OF 2000

SEC. 804. QUIET AIRCRAFT TECHNOLOGY FOR GRAND CANYON.

                         [49 U.S.C. 40128 note]

  (a) Quiet technology requirements.--Within 12 months after 
the date of the enactment of this Act, the Administrator shall 
designate reasonably achievable requirements for fixed-wing and 
helicopter aircraft necessary for such aircraft to be 
considered as employing quiet aircraft technology for purposes 
of this section. If the Administrator determines that the 
Administrator will not be able to make such designation before 
the last day of such 12-month period, the Administrator shall 
transmit to Congress a report on the reasons for not meeting 
such time period and the expected date of such designation.
  (b) Routes or corridors.--In consultation with the [Director] 
Secretary of the Interior and the advisory group established 
under section 805, the Administrator shall establish, by rule, 
routes or corridors for commercial air tour operations (as 
defined in section 40128(f) of title 49, United States Code) by 
fixed-wing and helicopter aircraft that employ quiet aircraft 
technology for--
          (1) tours of the Grand Canyon originating in Clark 
        County, Nevada; and
          (2) 'local loop' tours originating at the Grand 
        Canyon National Park Airport, in Tusayan, Arizona, 
        provided that such routes or corridors can be located 
        in areas that will not negatively impact the 
        substantial restoration of natural quiet, tribal lands, 
        or safety.
  (c) Operational caps.--Commercial air tour operations by any 
fixed-wing or helicopter aircraft that employs quiet aircraft 
technology and that replaces an existing aircraft shall not be 
subject to the operational flight allocations that apply to 
other commercial air tour operations of the Grand Canyon, 
provided that the cumulative impact of such operations does not 
increase noise at the Grand Canyon.
  (d) Modification of existing aircraft to meet standards.--A 
commercial air tour operation by a fixed-wing or helicopter 
aircraft in a commercial air tour operator's fleet on the date 
of the enactment of this Act that meets the requirements 
designated under subsection (a), or is subsequently modified to 
meet the requirements designated under subsection (a), may be 
used for commercial air tour operations under the same terms 
and conditions as a replacement aircraft under subsection (c) 
without regard to whether it replaces an existing aircraft.
  (e) Mandate to restore natural quiet.--Nothing in this Act 
shall be construed to relieve or diminish--
          (1) the statutory mandate imposed upon the Secretary 
        of the Interior and the Administrator of the Federal 
        Aviation Administration under Public Law 100-91 (16 
        U.S.C. 1a-1 note) to achieve the substantial 
        restoration of the natural quiet and experience at the 
        Grand Canyon National Park; and
          (2) the obligations of the Secretary and the 
        Administrator to promulgate forthwith regulations to 
        achieve the substantial restoration of the natural 
        quiet and experience at the Grand Canyon National Park.

SEC. 805. ADVISORY GROUP.

                         [49 U.S.C. 40128 note]

  (a) Establishment.--Not later than 1 year after the date of 
the enactment of this Act, the Administrator and the [Director 
of the National Park Service] Secretary of the Interior shall 
jointly establish an advisory group to provide continuing 
advice and counsel with respect to commercial air tour 
operations over and near national parks.
  (b) Membership.--
          (1) In general.--The advisory group shall be composed 
        of--
                  (A) a balanced group of--
                          (i) representatives of general 
                        aviation;
                          (ii) representatives of commercial 
                        air tour operators;
                          (iii) representatives of 
                        environmental concerns; and
                          (iv) representatives of Indian 
                        tribes;
                  (B) a representative of the Federal Aviation 
                Administration; and
                  (C) a representative of the [National Park 
                Service.] Department of the Interior.
          (2) Ex officio members.--The Administrator (or the 
        designee of the Administrator) and the [Director] 
        Secretary of the Interior (or the designee of the 
        [Director] Secretary of the Interior) shall serve as ex 
        officio members.
          (3) Chairperson.--The representative of the Federal 
        Aviation Administration and the representative of the 
        [National Park Service] Department of the Interior 
        shall serve alternating 1-year terms as chairman of the 
        advisory group, with the representative of the Federal 
        Aviation Administration serving initially until the end 
        of the calendar year following the year in which the 
        advisory group is first appointed.
  (c) Duties.--The advisory group shall provide advice, 
information, and recommendations to the Administrator and the 
Director--
          (1) on the implementation of this title and the 
        amendments made by this title;
          (2) on commonly accepted quiet aircraft technology 
        for use in commercial air tour operations over a 
        national park or tribal lands, which will receive 
        preferential treatment in a given air tour management 
        plan;
          (3) on other measures that might be taken to 
        accommodate the interests of visitors to national 
        parks; and
          (4) at the request of the Administrator and the 
        [Director] Secretary of the Interior, safety, 
        environmental, and other issues related to commercial 
        air tour operations over a national park or tribal 
        lands.
  (d) Compensation; support; FACA.
          (1) Compensation and travel.--Members of the advisory 
        group who are not officers or employees of the United 
        States, while attending conferences or meetings of the 
        group or otherwise engaged in its business, or while 
        serving away from their homes or regular places of 
        business, may be allowed travel expenses, including per 
        diem in lieu of subsistence, as authorized by section 
        5703 of title 5, United States Code, for persons in the 
        Government service employed intermittently.
          (2) Administrative support.--The Federal Aviation 
        Administration and the [National Park Service] 
        Department of the Interior shall jointly furnish to the 
        advisory group clerical and other assistance.
          (3) Nonapplication of FACA.--Section 14 of the 
        Federal Advisory Committee Act (5 U.S.C. App.) does not 
        apply to the advisory group.

           *       *       *       *       *       *       *


SEC. 807. REPORTS.

                         [49 U.S.C. 40128 note]

  (a) Overflight fee report.--Not later than 180 days after the 
date of the enactment of this Act, the Administrator shall 
transmit to Congress a report on the effects overflight fees 
are likely to have on the commercial air tour operation 
industry. The report shall include, but shall not be limited 
to--
          (1) the viability of a tax credit for the commercial 
        air tour operators equal to the amount of any 
        overflight fees charged by the [National Park Service;] 
        Department of the Interior; and
          (2) the financial effects proposed offsets are likely 
        to have on Federal Aviation Administration budgets and 
        appropriations.
  (b) Quiet aircraft technology report.--Not later than 2 years 
after the date of the enactment of this Act, the Administrator 
and the [Director of the National Park Service] Secretary of 
the Interior shall jointly transmit a report to Congress on the 
effectiveness of this title in providing incentives for the 
development and use of quiet aircraft technology.

                                  
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