[108th Congress Public Law 176]
[From the U.S. Government Printing Office]


[DOCID: f:publ176.108]

[[Page 2489]]

           VISION 100--CENTURY OF AVIATION REAUTHORIZATION ACT

[[Page 117 STAT. 2490]]

Public Law 108-176
108th Congress

                                 An Act


 
 To amend title 49, United States Code, to reauthorize programs for the 
 Federal Aviation Administration, and for other purposes. <<NOTE: Dec. 
                       12, 2003 -  [H.R. 2115]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress <<NOTE: Vision 100--Century of 
Aviation Reauthorization Act.>> assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This <<NOTE: 49 USC 40101 note.>> Act may be cited 
as the ``Vision 100--Century of Aviation Reauthorization Act''.

    (b) Table of Contents.--The table of contents for this Act is as 
follows:

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

                TITLE I--AIRPORT AND AIRWAY IMPROVEMENTS

                   Subtitle A--Funding of FAA Programs

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

                   Subtitle B--Passenger Facility Fees

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

                      Subtitle C--AIP Modifications

Sec. 141. Airfield pavement.
Sec. 142. Replacement of baggage conveyor systems.
Sec. 143. Authority to use certain funds for airport security programs 
           and activities.
Sec. 144. Grant assurances.
Sec. 145. Clarification of allowable project costs.
Sec. 146. Apportionments to primary airports.
Sec. 147. Cargo airports.
Sec. 148. Considerations in making discretionary grants.
Sec. 149. Flexible funding for nonprimary airport apportionments.
Sec. 150. Use of apportioned amounts.
Sec. 151. Increase in apportionment for, and flexibility of, noise 
           compatibility planning programs.
Sec. 152. Pilot program for purchase of airport development rights.
Sec. 153. Military airport program.
Sec. 154. Airport safety data collection.
Sec. 155. Airport privatization pilot program.
Sec. 156. Innovative financing techniques.
Sec. 157. Airport security program.

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Sec. 158. Emission credits for air quality projects.
Sec. 159. Low-emission airport vehicles and infrastructure.
Sec. 160. Compatible land use planning and projects by State and local 
           governments.
Sec. 161. Temporary increase in Government share of certain AIP project 
           costs.
Sec. 162. Share of airport project costs.
Sec. 163. Federal share for private ownership of airports.
Sec. 164. Disposition of land acquired for noise compatibility purposes.
Sec. 165. Hangar construction grant assurance.
Sec. 166. Terminal development costs.

                        Subtitle D--Miscellaneous

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

                       TITLE II--FAA ORGANIZATION

                         Subtitle A--FAA Reform

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

                        Subtitle B--Miscellaneous

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

                    TITLE III--ENVIRONMENTAL PROCESS

              Subtitle A--Aviation Development Streamlining

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

                        Subtitle B--Miscellaneous

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

                 TITLE IV--AIRLINE SERVICE IMPROVEMENTS

                 Subtitle A--Small Community Air Service

Sec. 401. Exemption from hold-in requirements.
Sec. 402. Adjustments to account for significantly increased costs.
Sec. 403. Joint proposals.

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Sec. 404. Essential air service authorization.
Sec. 405. Community and regional choice programs.
Sec. 406. Code-sharing pilot program.
Sec. 407. Tracking service.
Sec. 408. EAS local participation program.
Sec. 409. Measurement of highway miles for purposes of determining 
           eligibility of essential air service subsidies.
Sec. 410. Incentive program.
Sec. 411. National Commission on Small Community Air Service.
Sec. 412. Small community air service.

                        Subtitle B--Miscellaneous

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

                        TITLE V--AVIATION SAFETY

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

                       TITLE VI--AVIATION SECURITY

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

                      TITLE VII--AVIATION RESEARCH

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

                        TITLE VIII--MISCELLANEOUS

Sec. 801. Definitions.
Sec. 802. Report on aviation safety reporting system.
Sec. 803. Anchorage air traffic control.
Sec. 804. Extension of Metropolitan Washington Airports Authority.
Sec. 805. Improvement of aviation information collection.

[[Page 117 STAT. 2493]]

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

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

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

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

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

SEC. 3. <<NOTE: 49 USC 106 note.>> APPLICABILITY.

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

SEC. 4. <<NOTE: 49 USC 40101 note.>> FINDINGS.

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

[[Page 117 STAT. 2494]]

        security, aviation system capabilities, aircraft noise, 
        emissions, and fuel consumption.
            (6) Revitalization and coordination of the United States 
        efforts to maintain its leadership in aviation and aeronautics 
        are critical and must begin now.
            (7) A recent report by the Commission on the Future of the 
        United States Aerospace Industry outlined the scope of the 
        problems confronting the aerospace and aviation industries in 
        the United States and found that--
                    (A) aerospace will be at the core of the Nation's 
                leadership and strength throughout the 21st century;
                    (B) aerospace will play an integral role in the 
                Nation's economy, security, and mobility; and
                    (C) global leadership in aerospace is a national 
                imperative.
            (8) Despite the downturn in the global economy, projections 
        of the Federal Aviation Administration indicate that upwards of 
        1,000,000,000 people will fly annually by 2013. Efforts must 
        begin now to prepare for future growth in the number of airline 
        passengers.
            (9) The United States must increase its investment in 
        research and development to revitalize the aviation and 
        aerospace industries, to create jobs, and to provide educational 
        assistance and training to prepare workers in those industries 
        for the future.

                TITLE I--AIRPORT AND AIRWAY IMPROVEMENTS

                   Subtitle A--Funding of FAA Programs

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

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

    (b) Obligational Authority.--Section 47104(c) is amended by striking 
``September 30, 2003'' and inserting ``September 30, 2007''.

SEC. 102. AIR NAVIGATION FACILITIES AND EQUIPMENT.

    Section 48101 is amended--
            (1) in subsection (a) by striking paragraphs (1) through (5) 
        and inserting the following:
            ``(1) $3,138,000,000 for fiscal year 2004;
            ``(2) $2,993,000,000 for fiscal year 2005;
            ``(3) $3,053,000,000 for fiscal year 2006; and
            ``(4) $3,110,000,000 for fiscal year 2007.'';

[[Page 117 STAT. 2495]]

            (2) by striking subsections (b), (d), and (e) and 
        redesignating subsection (c) as subsection (b);
            (3) by inserting after subsection (b) (as so redesignated) 
        the following:

    ``(c) Enhanced Safety and Security for Aircraft Operations in the 
Gulf of Mexico.--Of amounts appropriated under subsection (a), such sums 
as may be necessary for fiscal years 2004 through 2007 may be used to 
expand and improve the safety, efficiency, and security of air traffic 
control, navigation, low altitude communications and surveillance, and 
weather services in the Gulf of Mexico.
    ``(d) Operational Benefits of Wake Vortex Advisory System.--Of 
amounts appropriated under subsection (a), such sums as may be necessary 
for each of fiscal years 2004 through 2007 may be used for the 
development and analysis of wake vortex advisory systems.
    ``(e) Ground-Based Precision Navigational Aids.--Of amounts 
appropriated under subsection (a), such sums as may be necessary for 
each of fiscal years 2004 to 2007 may be used to establish a program for 
the installation of a precision approach aid designed to improve 
aircraft accessibility at mountainous airports with limited land if the 
approach aid is able to provide curved and segmented approach guidance 
for noise abatement purposes and other such approach aids and is 
certified or approved by the Administrator.'';
            (4) in subsection (f)--
                    (A) by striking ``for fiscal years beginning after 
                September 30, 2000''; and
                    (B) by inserting ``may be used'' after 
                ``necessary''; and
            (5) by adding at the end the following:

    ``(h) Standby Power Efficiency Program.--Of amounts appropriated 
under subsection (a), such sums as may be necessary for each of fiscal 
years 2004 through 2007 may be used by the Secretary of Transportation, 
in cooperation with the Secretary of Energy and, where applicable, the 
Secretary of Defense, to establish a program to improve the efficiency, 
cost effectiveness, and environmental performance of standby power 
systems at Federal Aviation Administration sites, including the 
implementation of fuel cell technology.
    ``(i) Pilot Program To Provide Incentives for Development of New 
Technologies.--Of amounts appropriated under subsection (a), $500,000 
for fiscal year 2004 may be used for the conduct of a pilot program to 
provide operating incentives to users of the airspace for the deployment 
of new technologies, including technologies to facilitate expedited 
flight routing and sequencing of takeoffs and landings.''.

SEC. 103. FEDERAL AVIATION ADMINISTRATION OPERATIONS.

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

[[Page 117 STAT. 2496]]

                    ``(D) $8,064,000,000 for fiscal year 2007.
        Such sums shall remain available until expended.''.

    (b) Authorized Expenditures.--Section 106(k)(2) is amended--
            (1) by striking subparagraphs (A) and (B) and subparagraphs 
        (F) through (I);
            (2) by redesignating subparagraphs (C), (D), and (E) as 
        subparagraphs (A), (B), and (C), respectively;
            (3) in subparagraphs (A), (B), and (C) (as so redesignated) 
        by striking ``fiscal years 2000 through 2003'' and inserting 
        ``fiscal years 2004 through 2007''; and
            (4) by adding after subparagraph (C) (as so redesignated) 
        the following:
                    ``(D) Such sums as may be necessary for fiscal years 
                2004 through 2007 for the Center for Management 
                Development of the Federal Aviation Administration to 
                operate training courses and to support associated 
                student travel for both residential and field courses.
                    ``(E) Such sums as may be necessary for fiscal years 
                2004 through 2007 to carry out and expand the Air 
                Traffic Control Collegiate Training Initiative.
                    ``(F) Such sums as may be necessary for fiscal years 
                2004 through 2007 for the completion of the Alaska 
                aviation safety project with respect to the 3 
                dimensional mapping of Alaska's main aviation corridors.
                    ``(G) Such sums as may be necessary for fiscal years 
                2004 through 2007 to carry out the Aviation Safety 
                Reporting System.''.

    (c) Airline Data and Analysis.--There <<NOTE: Appropriation 
authorization.>> is authorized to be appropriated to the Secretary of 
Transportation, out of the Airport and Airway Trust Fund established by 
section 9502 of the Internal Revenue Code of 1986 (26 U.S.C. 9502), 
$3,971,000 for fiscal year 2004, $4,045,000 for fiscal year 2005, 
$4,127,000 for fiscal year 2006, and $4,219,000 for fiscal year 2007 to 
gather aviation data and conduct analyses of such data in the Bureau of 
Transportation Statistics of the Department of Transportation.

SEC. 104. FUNDING FOR AVIATION PROGRAMS.

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

``Sec. 48114. Funding for aviation programs

    ``(a) Authorization of Appropriations.--
            ``(1) Airport and airway trust fund guarantee.--
                    ``(A) In general.--The total budget resources made 
                available from the Airport and Airway Trust Fund each 
                fiscal year through fiscal year 2007 pursuant to 
                sections 48101, 48102, 48103, and 106(k) of title 49, 
                United States Code, shall be equal to the level of 
                receipts plus interest credited to the Airport and 
                Airway Trust Fund for that fiscal year. Such amounts may 
                be used only for aviation investment programs listed in 
                subsection (b).
                    ``(B) Guarantee.--No funds may be appropriated or 
                limited for aviation investment programs listed in 
                subsection (b) unless the amount described in 
                subparagraph (A) has been provided.

[[Page 117 STAT. 2497]]

            ``(2) Additional authorizations of appropriations from the 
        general fund.--In any fiscal year through fiscal year 2007, if 
        the amount described in paragraph (1) is appropriated, there is 
        further authorized to be appropriated from the general fund of 
        the Treasury such sums as may be necessary for the Federal 
        Aviation Administration Operations account.

    ``(b) Definitions.--In this section, the following definitions 
apply:
            ``(1) Total budget resources.--The term `total budget 
        resources' means the total amount made available from the 
        Airport and Airway Trust Fund for the sum of obligation 
        limitations and budget authority made available for a fiscal 
        year for the following budget accounts that are subject to the 
        obligation limitation on contract authority provided in this 
        title and for which appropriations are provided pursuant to 
        authorizations contained in this title:
                    ``(A) 69-8106-0-7-402 (Grants in Aid for Airports).
                    ``(B) 69-8107-0-7-402 (Facilities and Equipment).
                    ``(C) 69-8108-0-7-402 (Research and Development).
                    ``(D) 69-8104-0-7-402 (Trust Fund Share of 
                Operations).
            ``(2) Level of receipts plus interest.--The term `level of 
        receipts plus interest' means the level of excise taxes and 
        interest credited to the Airport and Airway Trust Fund under 
        section 9502 of the Internal Revenue Code of 1986 for a fiscal 
        year as set forth in the President's budget baseline projection 
        as defined in section 257 of the Balanced Budget and Emergency 
        Deficit Control Act of 1985 (Public Law 99-177) (Treasury 
        identification code 20-8103-0-7-402) for that fiscal year 
        submitted pursuant to section 1105 of title 31, United States 
        Code.

    ``(c) Enforcement of Guarantees.--
            ``(1) Total airport and airway trust fund funding.--It shall 
        not be in order in the House of Representatives or the Senate to 
        consider any bill, joint resolution, amendment, motion, or 
        conference report that would cause total budget resources in a 
        fiscal year for aviation investment programs described in 
        subsection (b) to be less than the amount required by subsection 
        (a)(1)(A) for such fiscal year.
            ``(2) Capital priority.--It shall not be in order in the 
        House of Representatives or the Senate to consider any bill, 
        joint resolution, amendment, motion, or conference report that 
        provides an appropriation (or any amendment thereto) for any 
        fiscal year through fiscal year 2007 for Research and 
        Development or Operations if the sum of the obligation 
        limitation for Grants-in-Aid for Airports and the appropriation 
        for Facilities and Equipment for such fiscal year is below the 
        sum of the authorized levels for Grants-in-Aid for Airports and 
        for Facilities and Equipment for such fiscal year.''.

    (b) Conforming Amendment.--The analysis for chapter 481 is amended 
by adding at the end the following:

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

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

[[Page 117 STAT. 2498]]

SEC. 105. AGREEMENTS FOR OPERATION OF AIRPORT FACILITIES.

    Section 47124 is amended--
            (1) by striking subsection (a) and inserting the following:

    ``(a) Government Relief From Liability.--The Secretary of 
Transportation shall ensure that an agreement under this subchapter with 
a qualified entity (as determined by the Secretary), State, or a 
political subdivision of a State to allow the entity, State, or 
subdivision to operate an airport facility relieves the United States 
Government from any liability arising out of, or related to, acts or 
omissions of employees of the entity, State, or subdivision in operating 
the airport facility.'';
            (2) by striking subsection (b)(2) and inserting the 
        following:

    ``(2) The Secretary may make a contract with a qualified entity (as 
determined by the Secretary) or, on a sole source basis, with a State or 
a political subdivision of a State to allow the entity, State, or 
subdivision to operate an airport traffic control tower classified as a 
level I (Visual Flight Rules) tower if the Secretary decides that the 
entity, State, or subdivision has the capability to 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) in subsection (b)(3)--
                    (A) in the paragraph heading by striking ``pilot'';
                    (B) by striking ``pilot'' each place it appears; and
                    (C) in subparagraph (E) by striking ``$6,000,000 per 
                fiscal year'' and inserting ``$6,500,000 for fiscal 
                2004, $7,000,000 for fiscal year 2005, $7,500,000 for 
                fiscal year 2006, and $8,000,000 for fiscal year 2007''; 
                and
            (4) in subsection (b)(4)(C) by striking ``$1,100,000.'' and 
        inserting ``$1,500,000.''.

SEC. 106. INSURANCE.

    (a) Aircraft Manufacturers.--
            (1) In general.--Section 44302 is amended by adding at the 
        end the following:

    ``(g) Aircraft Manufacturers.--
            ``(1) In general.--The Secretary may provide to an aircraft 
        manufacturer insurance for loss or damage resulting from 
        operation of an aircraft by an air carrier and involving war or 
        terrorism.
            ``(2) Amount.--Insurance provided by the Secretary under 
        this subsection shall be for loss or damage in excess of the 
        greater of the amount of available primary insurance or 
        $50,000,000.
            ``(3) Terms and conditions.--Insurance provided by the 
        Secretary under this subsection shall be subject to the terms 
        and conditions set forth in this chapter and such other terms 
        and conditions as the Secretary may prescribe.''.
            (2) Definition of aircraft manufacturer.--Section 44301 is 
        amended--
                    (A) by redesignating paragraphs (1) and (2) as 
                paragraphs (2) and (3), respectively; and
                    (B) by inserting before paragraph (2) (as so 
                redesignated) the following:

[[Page 117 STAT. 2499]]

            ``(1) `aircraft manufacturer' means any company or other 
        business entity, the majority ownership and control of which is 
        by United States citizens, that manufactures aircraft or 
        aircraft engines.''.
            (3) Coverage.--Section 44303(a) is amended--
                    (A) in the subsection heading by striking ``In 
                general'' and inserting ``In General''; and
                    (B) by adding at the end the following:
            ``(6) loss or damage of an aircraft manufacturer resulting 
        from operation of an aircraft by an air carrier and involving 
        war or terrorism.''.

    (b) Aircraft Manufacturer Liability for Third-Party Claims Arising 
Out of Acts of Terrorism.--Section 44303(b) is amended by adding at the 
end the following: ``The Secretary may extend the provisions of this 
subsection to an aircraft manufacturer (as defined in section 44301) of 
the aircraft of the air carrier involved.''.
    (c) Premiums and Limitations on Coverage and Claims.--Section 
44306(b) is amended by striking ``air'' and inserting ``insurance''.
    (d) Ending Effective Date.--Section 44310 is amended by striking 
``December 31, 2004'' and inserting ``March 30, 2008''.
    (e) Technical Correction.--Effective <<NOTE: Effective 
date.>> November 19, 2001, section 124(b) of the Aviation and 
Transportation Security Act (115 Stat. 631) <<NOTE: 49 USC 44306.>> is 
amended by striking ``to carry out foreign policy'' and inserting ``to 
carry out the foreign policy''.

                   Subtitle B--Passenger Facility Fees

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

    (a) In General.--Section 40117(a)(3) is amended by inserting at the 
end the following:
                    ``(G) A project for converting vehicles and ground 
                support equipment used at a commercial service airport 
                to low-emission technology (as defined in section 47102) 
                or to use cleaner burning conventional fuels, 
                retrofitting of any such vehicles or equipment that are 
                powered by a diesel or gasoline engine with emission 
                control technologies certified or verified by the 
                Environmental Protection Agency to reduce emissions, or 
                acquiring for use at a commercial service airport 
                vehicles and ground support equipment that include low-
                emission technology or use cleaner burning fuels if the 
                airport is located in an air quality nonattainment area 
                (as defined in section 171(2) of the Clean Air Act (42 
                U.S.C. 7501(2))) or a maintenance area eferred to in 
                section 175A of such Act (42 U.S.C. 7505a) and if such 
                project will result in an airport receiving appropriate 
                emission credits as described in section 47139.''.

    (b) Maximum Cost for Certain Low-Emission Technology Projects.--
Section 40117(b) is amended by adding at the end the following:
            ``(5) Maximum cost for certain low-emission technology 
        projects.--The maximum cost that may be financed by imposition 
        of a passenger facility fee under this section

[[Page 117 STAT. 2500]]

        for a project described in subsection (a)(3)(G) with respect to 
        a vehicle or ground support equipment may not exceed the 
        incremental amount of the project cost that is greater than the 
        cost of acquiring a vehicle or equipment that is not low-
        emission and would be used for the same purpose, or the cost of 
        low-emission retrofitting, as determined by the Secretary.''.

    (c) Ground Support Equipment Defined.--Section 40117(a) is amended--
            (1) by redesignating paragraphs (4) and (5) as paragraphs 
        (5) and (6), respectively; and
            (2) by inserting after paragraph (3) the following:
            ``(4) Ground support equipment.--The term `ground support 
        equipment' means service and maintenance equipment used at an 
        airport to support aeronautical operations and related 
        activities.''.

    (d) Guidance.--The <<NOTE: 49 USC 40117 note.>> Secretary, in 
consultation with the Administrator of the Environmental Protection 
Agency, shall issue guidance determining eligibility of projects, and 
how benefits to air quality must be demonstrated, under the amendments 
made by this section.

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

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

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

    (a) Application Requirements.--Section 40117(c) is amended--
            (1) by adding at the end of paragraph (2) the following:
            ``(E) The agency must include in its application or notice 
        submitted under subparagraph (A) copies of all certifications of 
        agreement or disagreement received under subparagraph (D).
            ``(F) For the purpose of this section, an eligible agency 
        providing notice and an opportunity for consultation to an air 
        carrier or foreign air carrier is deemed to have satisfied the 
        requirements of this paragraph if the eligible agency limits 
        such notices and consultations to air carriers and foreign air 
        carriers that have a significant business interest at the 
        airport. In the subparagraph, the term `significant business 
        interest' means an air carrier or foreign air carrier that had 
        no less than 1.0 percent of passenger boardings at the airport 
        in the prior calendar year, had at least 25,000 passenger 
        boardings at the airport in the prior calendar year, or provides 
        scheduled service at the airport.'';
            (2) by redesignating paragraph (3) as paragraph (4);
            (3) by inserting after paragraph (2) the following:

[[Page 117 STAT. 2501]]

    ``(3) <<NOTE: Notice. Regulations.>> Before submitting an 
application, the eligible agency must provide reasonable notice and an 
opportunity for public comment. The Secretary shall prescribe 
regulations that define reasonable notice and provide for at least the 
following under this paragraph:
            ``(A) A requirement that the eligible agency provide public 
        notice of intent to collect a passenger facility fee so as to 
        inform those interested persons and agencies that may be 
        affected. The public notice may include--
                    ``(i) publication in local newspapers of general 
                circulation;
                    ``(ii) publication in other local media; and
                    ``(iii) posting the notice on the agency's Internet 
                website.
            ``(B) A requirement for submission of public comments no 
        sooner than 30 days, and no later than 45 days, after the date 
        of the publication of the notice.
            ``(C) A requirement that the agency include in its 
        application or notice submitted under subparagraph (A) copies of 
        all comments received under subparagraph (B).''; and
            (4) in the first sentence of paragraph (4) (as redesignated 
        by paragraph (2) of this subsection) by striking ``shall'' and 
        inserting ``may''.

    (b) Pilot Program for Passenger Facility Fee Authorizations at 
Nonhub Airports.--Section 40117 is amended by adding at the end the 
following:
    ``(l) Pilot Program for Passenger Facility Fee Authorizations at 
Nonhub Airports.--
            ``(1) In general.--The Secretary shall establish a pilot 
        program to test alternative procedures for authorizing eligible 
        agencies for nonhub airports to impose passenger facility fees. 
        An eligible agency may impose in accordance with the provisions 
        of this subsection a passenger facility fee under this 
        section. <<NOTE: Applicability.>> For purposes of the pilot 
        program, the procedures in this subsection shall apply instead 
        of the procedures otherwise provided in this section.
            ``(2) Notice and opportunity for consultation.--The eligible 
        agency must provide reasonable notice and an opportunity for 
        consultation to air carriers and foreign air carriers in 
        accordance with subsection (c)(2) and must provide reasonable 
        notice and opportunity for public comment in accordance with 
        subsection (c)(3).
            ``(3) Notice of intention.--The eligible agency must submit 
        to the Secretary a notice of intention to impose a passenger 
        facility fee under this subsection. The notice shall include--
                    ``(A) information that the Secretary may require by 
                regulation on each project for which authority to impose 
                a passenger facility fee is sought;
                    ``(B) the amount of revenue from passenger facility 
                fees that is proposed to be collected for each project; 
                and
                    ``(C) the level of the passenger facility fee that 
                is proposed.
            ``(4) Acknowledgement <<NOTE: Deadline.>> of receipt and 
        indication of objection.--The Secretary shall acknowledge 
        receipt of the

[[Page 117 STAT. 2502]]

        notice and indicate any objection to the imposition of a 
        passenger facility fee under this subsection for any project 
        identified in the notice within 30 days after receipt of the 
        eligible agency's notice.
            ``(5) Authority <<NOTE: Deadline.>> to impose fee.--Unless 
        the Secretary objects within 30 days after receipt of the 
        eligible agency's notice, the eligible agency is authorized to 
        impose a passenger facility fee in accordance with the terms of 
        its notice under this subsection.
            ``(6) Regulations.--Not <<NOTE: Deadline.>> later than 180 
        days after the date of enactment of this subsection, the 
        Secretary shall propose such regulations as may be necessary to 
        carry out this subsection.
            ``(7) Sunset.--This subsection shall cease to be effective 
        beginning on the date that is 3 years after the date of issuance 
        of regulations to carry out this subsection.
            ``(8) Acknowledgement not an order.--An acknowledgement 
        issued under paragraph (4) shall not be considered an order 
        issued by the Secretary for purposes of section 46110.''.

    (c) Clarification of Applicability of PFC's to Military Charters.--
Section 40117(e)(2) is amended--
            (1) by striking the period at the end of subparagraph (C) 
        and inserting a semicolon;
            (2) by striking ``and'' at the end of subparagraph (D);
            (3) by striking the period at the end of subparagraph (E) 
        and inserting ``; and''; and
            (4) by adding after subparagraph (E) the following:
            ``(F) enplaning at an airport if the passenger did not pay 
        for the air transportation which resulted in such enplanement 
        due to charter arrangements and payment by the Department of 
        Defense.''.

    (d) Technical Amendments.--Section 40117(a)(3)(C) is amended--
            (1) by striking ``for costs'' and inserting ``A project for 
        costs''; and
            (2) by striking the semicolon and inserting a period.

    (e) Eligibility <<NOTE: Deadline. Federal Register, publication. 49 
USC 40117 note.>> of Airport Ground Access Transportation Projects.--Not 
later than 60 days after the enactment of this Act, the Administrator of 
the Federal Aviation Administration shall publish in the Federal 
Register the current policy of the Administration, consistent with 
current law, with respect to the eligibility of airport ground access 
transportation projects for the use of passenger facility fees under 
section 40117 of title 49, United States Code.

SEC. 124. FINANCIAL MANAGEMENT OF PASSENGER FACILITY FEES.

    Section 40117 is further amended by adding at the end the following:
    ``(m) Financial Management of Fees.--
            ``(1) Handling of fees.--A covered air carrier shall 
        segregate in a separate account passenger facility revenue equal 
        to the average monthly liability for fees collected under this 
        section by such carrier or any of its agents for the benefit of 
        the eligible agencies entitled to such revenue.
            ``(2) Trust fund status.--If a covered air carrier or its 
        agent fails to segregate passenger facility revenue in violation 
        of the subsection, the trust fund status of such revenue shall

[[Page 117 STAT. 2503]]

        not be defeated by an inability of any party to identify and 
        trace the precise funds in the accounts of the air carrier.
            ``(3) Prohibition.--A covered air carrier and its agents may 
        not grant to any third party any security or other interest in 
        passenger facility revenue.
            ``(4) Compensation to eligible entities.--A covered air 
        carrier that fails to comply with any requirement of this 
        subsection, or otherwise unnecessarily causes an eligible entity 
        to expend funds, through litigation or otherwise, to recover or 
        retain payment of passenger facility revenue to which the 
        eligible entity is otherwise entitled shall be required to 
        compensate the eligible agency for the costs so incurred.
            ``(5) Interest on amounts.--A covered air carrier that 
        collects passenger facility fees is entitled to receive the 
        interest on passenger facility fee accounts if the accounts are 
        established and maintained in compliance with this subsection.
            ``(6) Existing regulations.--The provisions of section 
        158.49 of title 14, Code of Federal Regulations, that permit the 
        commingling of passenger facility fees with other air carrier 
        revenue shall not apply to a covered air carrier.
            ``(7) Covered air carrier defined.--In this section, the 
        term `covered air carrier' means an air carrier that files for 
        chapter 7 or chapter 11 of title 11 bankruptcy protection, or 
        has an involuntary chapter 7 of title 11 bankruptcy proceeding 
        commenced against it, after the date of enactment of this 
        subsection.''.

                      Subtitle C--AIP Modifications

SEC. 141. AIRFIELD PAVEMENT.

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

SEC. 142. REPLACEMENT OF BAGGAGE CONVEYOR SYSTEMS.

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

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

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

SEC. 144. GRANT ASSURANCES.

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

[[Page 117 STAT. 2504]]

SEC. 145. CLARIFICATION OF ALLOWABLE PROJECT COSTS.

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

SEC. 146. APPORTIONMENTS TO PRIMARY AIRPORTS.

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

    (b) Special Rule for Transitioning Airports.--Section 47114(f)(3) is 
amended--
            (1) in the paragraph heading by striking ``airorts'' and 
        inserting ``airports''; and
            (2) in subparagraph (B) by striking ``fiscal years 2000 
        through 2003'' and inserting ``fiscal year 2004''.

SEC. 147. CARGO AIRPORTS.

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

SEC. 148. CONSIDERATIONS IN MAKING DISCRETIONARY GRANTS.

    Section 47115(d) is amended to read as follows:
    ``(d) Considerations.--
            ``(1) For capacity enhancement projects.--In selecting a 
        project for a grant to preserve and improve capacity funded in 
        whole or in part from the fund, the Secretary shall consider--
                    ``(A) the effect that the project will have on 
                overall national transportation system capacity;
                    ``(B) the benefit and cost of the project, 
                including, in the case of a project at a reliever 
                airport, the number of operations projected to be 
                diverted from a primary airport to the reliever airport 
                as a result of the project, as well as the cost savings 
                projected to be realized by users of the local airport 
                system;
                    ``(C) the financial commitment from non-United 
                States Government sources to preserve or improve airport 
                capacity;
                    ``(D) the airport improvement priorities of the 
                States to the extent such priorities are not in conflict 
                with subparagraphs (A) and (B);

[[Page 117 STAT. 2505]]

                    ``(E) the projected growth in the number of 
                passengers or aircraft that will be using the airport at 
                which the project will be carried out; and
                    ``(F) the ability of the project to foster United 
                States competitiveness in securing global air cargo 
                activity at a United States airport.
            ``(2) For all projects.--In selecting a project for a grant 
        under this section, the Secretary shall consider among other 
        factors whether--
                    ``(A) funding has been provided for all other 
                projects qualifying for funding during the fiscal year 
                under this chapter that have attained a higher score 
                under the numerical priority system employed by the 
                Secretary in administering the fund; and
                    ``(B) the sponsor will be able to commence the work 
                identified in the project application in the fiscal year 
                in which the grant is made or within 6 months after the 
                grant is made, whichever is later.''.

SEC. 149. FLEXIBLE FUNDING FOR NONPRIMARY AIRPORT APPORTIONMENTS.

    (a) Project Grant Agreements.--Section 47108(a) is amended by 
inserting ``or 47114(d)(3)(A)'' after ``under section 47114(c)''.
    (b) Allowable Project Costs.--Section 47110 is amended--
            (1) in subsection (b)(2)(C) by striking ``of this title'' 
        and inserting ``or section 47114(d)(3)(A)'';
            (2) in subsection (g)--
                    (A) by inserting ``or section 47114(d)(3)(A)'' after 
                ``of section 47114(c)''; and
                    (B) by striking ``of project'' and inserting ``of 
                the project''; and
            (3) by adding at the end the following:

    ``(h) Nonprimary Airports.--The Secretary may decide that the costs 
of revenue producing aeronautical support facilities, including fuel 
farms and hangars, are allowable for an airport development project at a 
nonprimary airport if the Government's share of such costs is paid only 
with funds apportioned to the airport sponsor under section 
47114(d)(3)(A) and if the Secretary determines that the sponsor has made 
adequate provision for financing airside needs of the airport.''.
    (c) Waiver.--Section 47117(c)(2) is amended to read as follows:
            ``(2) Waiver.--A sponsor of an airport may make an agreement 
        with the Secretary of Transportation waiving the sponsor's claim 
        to any part of the amount apportioned for the airport under 
        sections 47114(c) and 47114(d)(3)(A) if the Secretary agrees to 
        make the waived amount available for a grant for another public-
        use airport in the same State or geographical area as the 
        airport, as determined by the Secretary.''.

    (d) Terminal Development Costs.--Section 47119(b) is amended--
            (1) by striking ``or'' at the end of paragraph (3);
            (2) by striking the period at the end of paragraph (4) and 
        inserting ``; or''; and
            (3) by adding at the end the following:
            ``(5) to a sponsor of a nonprimary airport, any part of 
        amounts apportioned to the sponsor for the fiscal year under

[[Page 117 STAT. 2506]]

        section 47114(d)(3)(A) for project costs allowable under section 
        47110(d).''.

SEC. 150. USE OF APPORTIONED AMOUNTS.

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

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

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

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

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

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

    ``(a) In General.--The Secretary of Transportation shall establish a 
pilot program to support the purchase, by a State or political 
subdivision of a State, of development rights associated with, or 
directly affecting the use of, privately owned public use airports 
located in that State. Under the program, the Secretary may make a grant 
to a State or political subdivision of a State from funds apportioned 
under section 47114 for the purchase of such rights.
    ``(b) Grant Requirements.--
            ``(1) In general.--The Secretary may not make a grant under 
        subsection (a) unless the grant is made--
                    ``(A) to enable the State or political subdivision 
                to purchase development rights in order to ensure that 
                the airport property will continue to be available for 
                use as a public airport; and
                    ``(B) subject to a requirement that the State or 
                political subdivision acquire an easement or other 
                appropriate covenant requiring that the airport shall 
                remain a public use airport in perpetuity.
            ``(2) Matching requirement.--The amount of a grant under the 
        program may not exceed 90 percent of the costs of acquiring the 
        development rights.

    ``(c) Grant Standards.--The Secretary shall prescribe standards for 
grants under subsection (a), including--
            ``(1) grant application and approval procedures; and

[[Page 117 STAT. 2507]]

            ``(2) requirements for the content of the instrument 
        recording the purchase of the development rights.

    ``(d) Release of Purchased Rights and Covenant.--Any development 
rights purchased under the program shall remain the property of the 
State or political subdivision unless the Secretary approves the 
transfer or disposal of the development rights after making a 
determination that the transfer or disposal of that right is in the 
public interest.
    ``(e) Limitation.--The Secretary may not make a grant under the 
pilot program for the purchase of development rights at more than 10 
airports.''.
    (b) Conforming Amendment.--The analysis for chapter 471 is amended 
by inserting after the item relating to section 47137 the following:

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

SEC. 153. MILITARY AIRPORT PROGRAM.

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

SEC. 154. AIRPORT SAFETY DATA COLLECTION.

    Section 47130 is amended to read as follows:

``Sec. 47130. Airport safety data collection

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

[[Page 117 STAT. 2508]]

SEC. 155. AIRPORT PRIVATIZATION PILOT PROGRAM.

    (a) In General.--Section 47134(b)(1) is amended--
            (1) in subparagraph (A) by striking clauses (i) and (ii) and 
        inserting the following:
                          ``(i) in the case of a primary airport, by at 
                      least 65 percent of the scheduled air carriers 
                      serving the airport and by scheduled and 
                      nonscheduled air carriers whose aircraft landing 
                      at the airport during the preceding calendar year, 
                      had a total landed weight during the preceding 
                      calendar year of at least 65 percent of the total 
                      landed weight of all aircraft landing at the 
                      airport during such year; or
                          ``(ii) in the case of a nonprimary airport, by 
                      the Secretary after the airport has consulted with 
                      at least 65 percent of the owners of aircraft 
                      based at that airport, as determined by the 
                      Secretary.'';
            (2) by redesignating subparagraph (B) as subparagraph (C); 
        and
            (3) by inserting after subparagraph (A) the following:
                    ``(B) Objection to exemption.--
                An <<NOTE: Deadline.>> air carrier shall be deemed to 
                have approved a sponsor's application for an exemption 
                under subparagraph (A) unless the air carrier has 
                submitted an objection, in writing, to the sponsor 
                within 60 days of the filing of the sponsor's 
                application with the Secretary, or within 60 days of the 
                service of the application upon that air carrier, 
                whichever is later.''.

    (b) Effective Date.--The <<NOTE: 49 USC 47134 note.>> amendments 
made by subsection (a) shall not affect any application submitted before 
the date of enactment of this Act.

SEC. 156. INNOVATIVE FINANCING TECHNIQUES.

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

SEC. 157. AIRPORT SECURITY PROGRAM.

    Section 47137 is amended--
            (1) by redesignating subsections (e) and (f) as subsections 
        (f) and (g), respectively; and
            (2) by inserting after subsection (d) the following:

    ``(e) Administration.--The Secretary, in cooperation with the 
Secretary of Homeland Security, shall administer the program authorized 
by this section.''.

SEC. 158. EMISSION CREDITS FOR AIR QUALITY PROJECTS.

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

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

    ``(a) In General.--The Administrator of the Environmental Protection 
Agency, in consultation with the Secretary of Transportation, shall 
issue guidance on how to ensure that airport sponsors receive 
appropriate emission reduction credits for carrying out projects 
described in sections 40117(a)(3)(G), 47102(3)(F), 47102(3)(K), and 
47102(3)(L). Such guidance shall include, at a minimum, the following 
conditions:
            ``(1) The provision of credits is consistent with the Clean 
        Air Act (42 U.S.C. 7402 et seq.).

[[Page 117 STAT. 2509]]

            ``(2) Credits generated by the emissions reductions are kept 
        by the airport sponsor and may only be used for purposes of any 
        current or future general conformity determination under the 
        Clean Air Act or as offsets under the Environmental Protection 
        Agency's new source review program for projects on the airport 
        or associated with the airport.
            ``(3) Credits are calculated and provided to airports on a 
        consistent basis nationwide.
            ``(4) Credits are provided to airport sponsors in a timely 
        manner.
            ``(5) The establishment of a method to assure the Secretary 
        that, for any specific airport project for which funding is 
        being requested, the appropriate credits will be granted.

    ``(b) Assurance of Receipt of Credits.--As a condition for making a 
grant for a project described in section 47102(3)(F), 47102(3)(K), 
47102(3)(L), or 47140 or as a condition for granting approval to collect 
or use a passenger facility fee for a project described in section 
40117(a)(3)(G), 47103(3)(F), 47102(3)(K), 47102(3)(L), or 47140, the 
Secretary must receive assurance from the State in which the project is 
located, or from the Administrator of the Environmental Protection 
Agency where there is a Federal implementation plan, that the airport 
sponsor will receive appropriate emission credits in accordance with the 
conditions of this section.
    ``(c) Previously Approved Projects.--The Administrator of the 
Environmental Protection Agency, in consultation with the Secretary, 
shall determine how to provide appropriate emissions credits to airport 
projects previously approved under section 47136 consistent with the 
guidance and conditions specified in subsection (a).
    ``(d) State Authority Under CAA.--Nothing in this section shall be 
construed as overriding existing State law or regulation pursuant to 
section 116 of the Clean Air Act (42 U.S.C. 7416).''.
    (b) Conforming Amendment.--The analysis for chapter 471 is further 
amended by inserting after the item relating to section 47138 the 
following:

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

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

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

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

    ``(a) In General.--The Secretary of Transportation shall carry out a 
pilot program at not more than 10 commercial service airports under 
which the sponsors of such airports may use an amount made available 
under section 48103 to retrofit existing eligible airport ground support 
equipment that burns conventional fuels to achieve lower emissions 
utilizing emission control technologies certified or verified by the 
Environmental Protection Agency.
    ``(b) Location in Air Quality Nonattainment or Maintenance Areas.--A 
commercial service airport shall be eligible for participation in the 
pilot program only if the airport is located in an air quality 
nonattainment area (as defined in section 171(2)

[[Page 117 STAT. 2510]]

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

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

    (b) Activities Added to Definition of Airport Development.--
            (1) In general.--Section 47102(3) is amended--
                    (A) by striking subparagraphs (J), (K), and (L) and 
                redesignating subparagraph (M) as subparagraph (J); and
                    (B) by adding at the end the following:
                    ``(K) work necessary to construct or modify airport 
                facilities to provide low-emission fuel systems, gate 
                electrification, and other related air quality 
                improvements at a commercial service airport if the 
                airport is located in an air quality nonattainment or 
                maintenance area (as defined in sections 171(2) and 175A 
                of the Clean Air Act (42 U.S.C. 7501(2); 7505a) and if 
                such project will result in an airport receiving 
                appropriate emission credits, as described in section 
                47139.
                    ``(L) a project for the acquisition or conversion of 
                vehicles and ground support equipment, owned by a 
                commercial service airport, to low-emission technology, 
                if the airport is located in an air quality 
                nonattainment or maintenance area (as defined in 
                sections 171(2) and 175A of the Clean Air Act (42 U.S.C. 
                7501(2); 7505a) and if such project will result in an 
                airport receiving appropriate emission credits as 
                described in section 47139.''.
            (2) <<NOTE: 49 USC 47102 note.>> Guidance.--
                    (A) Eligible low-emission modifications and 
                improvements.--The Secretary of Transportation, in 
                consultation with the Administrator of the Environmental 
                Protection Agency, shall issue guidance describing 
                eligible low-emission modifications and improvements, 
                and stating

[[Page 117 STAT. 2511]]

                how airport sponsors will demonstrate benefits, under 
                section 47102(3)(K) of title 49, United States Code, as 
                added by this subsection.
                    (B) Eligible low-emission vehicle technology.--The 
                Secretary, in consultation with the Administrator, shall 
                issue guidance describing eligible low-emission vehicle 
                technology, and stating how airport sponsors will 
                demonstrate benefits, under section 47102(3)(L) of title 
                49, United States Code, as added by this subsection.

    (c) Allowable Project Cost.--Section 47110(b) is amended--
            (1) by striking ``and'' at the end of paragraph (4);
            (2) by striking the period at the end of paragraph (5) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(6) if the cost is for a project not described in section 
        47102(3) for acquiring for use at a commercial service airport 
        vehicles and ground support equipment owned by an airport that 
        include low-emission technology, but only to the extent of the 
        incremental cost of equipping such vehicles or equipment with 
        low-emission technology, as determined by the Secretary.''.

    (d) Low-Emission Technology Equipment.--Section 47102 (as amended by 
section 801 of this Act) is further amended by inserting after paragraph 
(10) the following:
            ``(11) `low-emission technology' means technology for 
        vehicles and equipment whose emission performance is the best 
        achievable under emission standards established by the 
        Environmental Protection Agency and that relies exclusively on 
        alternative fuels that are substantially nonpetroleum based, as 
        defined by the Department of Energy, but not excluding hybrid 
        systems or natural gas powered vehicles.''.

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

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

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

    ``(a) In General.--The Secretary of Transportation may make grants, 
from amounts set aside under section 47117(e)(1)(A), to States and units 
of local government for development and implementation of land use 
compatibility plans and implementation of land use compatibility 
projects resulting from those plans for the purposes of making the use 
of land areas around large hub airports and medium hub airports 
compatible with aircraft operations. The Secretary may make a grant 
under this section for a land use compatibility plan or a project 
resulting from such plan only if--
            ``(1) the airport operator has not submitted a noise 
        compatibility program to the Secretary under section 47504 or 
        has not updated such program within the preceding 10 years; and
            ``(2) the land use plan or project meets the requirements of 
        this section.

    ``(b) Eligibility.--In order to receive a grant under this section, 
a State or unit of local government must--

[[Page 117 STAT. 2512]]

            ``(1) have the authority to plan and adopt land use control 
        measures, including zoning, in the planning area in and around a 
        large or medium hub airport;
            ``(2) enter into an agreement with the airport owner or 
        operator that the development of the land use compatibility plan 
        will be done cooperatively; and
            ``(3) provide written assurance to the Secretary that it 
        will achieve, to the maximum extent possible, compatible land 
        uses consistent with Federal land use compatibility criteria 
        under section 47502(3) and that those compatible land uses will 
        be maintained.

    ``(c) Assurances.--The Secretary shall require a State or unit of 
local government to which a grant may be made under this section for a 
land use plan or a project resulting from such plan to provide--
            ``(1) assurances satisfactory to the Secretary that the 
        plan--
                    ``(A) is reasonably consistent with the goal of 
                reducing existing noncompatible land uses and preventing 
                the introduction of additional noncompatible land uses;
                    ``(B) addresses ways to achieve and maintain 
                compatible land uses, including zoning, building codes, 
                and any other land use compatibility measures under 
                section 47504(a)(2) that are within the authority of the 
                State or unit of local government to implement;
                    ``(C) uses noise contours provided by the airport 
                operator that are consistent with the airport operation 
                and planning, including any noise abatement measures 
                adopted by the airport operator as part of its own noise 
                mitigation efforts;
                    ``(D) does not duplicate, and is not inconsistent 
                with, the airport operator's noise compatibility 
                measures for the same area; and
                    ``(E) has been approved jointly by the airport owner 
                or operator and the State or unit of local government; 
                and
            ``(2) such other assurances as the Secretary determines to 
        be necessary to carry out this section.

    ``(d) Guidelines.--The Secretary shall establish guidelines to 
administer this section in accordance with the purposes and conditions 
described in this section. The Secretary may require a State or unit of 
local government to which a grant may be made under this section to 
provide progress reports and other information as the Secretary 
determines to be necessary to carry out this section.
    ``(e) Eligible Projects.--The Secretary may approve a grant under 
this section to a State or unit of local government for a project 
resulting from a land use compatibility plan only if the Secretary is 
satisfied that the project is consistent with the guidelines established 
by the Secretary under this section, the State or unit of local 
government has provided the assurances required by this section, the 
State or unit of local government has implemented (or has made provision 
to implement) those elements of the plan that are not eligible for 
Federal financial assistance, and that the project is not inconsistent 
with applicable Federal Aviation Administration standards.
    ``(f) Sunset.--This section shall not be in effect after September 
30, 2007.''.

[[Page 117 STAT. 2513]]

    (b) Conforming Amendment.--The analysis of subchapter I of chapter 
471 is further amended by adding at the end the following:

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

SEC. 161. <<NOTE: 49 USC 47109 note.>> TEMPORARY INCREASE IN GOVERNMENT 
            SHARE OF CERTAIN AIP PROJECT COSTS.

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

SEC. 162. SHARE OF AIRPORT PROJECT COSTS.

    (a) In General.--Section 47109 is amended--
            (1) by redesignating subsection (c) as subsection (d); and
            (2) by inserting after subsection (b) the following:

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

    (b) Conforming Amendment.--Subsection (a) of section 47109 is 
amended by striking ``Except as provided in subsection (b)'' and 
inserting ``Except as provided in subsection (b) or subsection (c)''.

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

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

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

    Section 47107(c)(2)(A)(iii) is amended by inserting before the 
semicolon at the end the following: ``, including the purchase of 
nonresidential buildings or property in the vicinity of residential

[[Page 117 STAT. 2514]]

buildings or property previously purchased by the airport as part of a 
noise compatibility program''.

SEC. 165. HANGAR CONSTRUCTION GRANT ASSURANCE.

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

SEC. 166. TERMINAL DEVELOPMENT COSTS.

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

[[Page 117 STAT. 2515]]

                    ``(C) amounts available for airport development 
                under this subchapter will not be used for additional 
                terminal development projects at the airport for at 
                least 1 year beginning on the date the grant is used to 
                repay the borrowed money.
            ``(5) Applicability of certain limitations.--A grant under 
        this subsection shall be subject to the limitations in 
        subsection (b)(1) and (2).''.

                        Subtitle D--Miscellaneous

SEC. 181. DESIGN-BUILD CONTRACTING.

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

``Sec. 47142. Design-build contracting

    ``(a) In General.--The Administrator of the Federal Aviation 
Administration may approve an application of an airport sponsor under 
this section to authorize the airport sponsor to award a design-build 
contract using a selection process permitted under applicable State or 
local law if--
            ``(1) the Administrator approves the application using 
        criteria established by the Administrator;
            ``(2) the design-build contract is in a form that is 
        approved by the Administrator;
            ``(3) the Administrator is satisfied that the contract will 
        be executed pursuant to competitive procedures and contains a 
        schematic design adequate for the Administrator to approve the 
        grant;
            ``(4) use of a design-build contract will be cost effective 
        and expedite the project;
            ``(5) the Administrator is satisfied that there will be no 
        conflict of interest; and
            ``(6) the Administrator is satisfied that the selection 
        process will be as open, fair, and objective as the competitive 
        bid system and that at least 3 or more bids will be submitted 
        for each project under the selection process.

    ``(b) Reimbursement of Costs.--The Administrator may reimburse an 
airport sponsor for design and construction costs incurred before a 
grant is made pursuant to this section if the project is approved by the 
Administrator in advance and is carried out in accordance with all 
administrative and statutory requirements that would have been 
applicable under this chapter if the project were carried out after a 
grant agreement had been executed.
    ``(c) Design-Build Contract Defined.--In this section, the term 
`design-build contract' means an agreement that provides for both design 
and construction of a project by a contractor.''.
    (b) Conforming Amendment.--The analysis for chapter 471 is further 
amended by inserting after the item relating to section 47141 the 
following:

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

SEC. 182. <<NOTE: 49 USC 44502 note.>> PILOT PROGRAM FOR INNOVATIVE 
            FINANCING OF AIR TRAFFIC CONTROL EQUIPMENT.

    (a) In General.--In order to test the cost effectiveness and 
feasibility of long-term financing of modernization of major air

[[Page 117 STAT. 2516]]

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

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

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

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

    ``(a) In General.--Subject to the requirements of this section, the 
Secretary may carry out a program under which the Secretary may make 
grants to project sponsors for not more than 10 eligible projects per 
fiscal year for the purpose of improving aviation safety and enhancing 
mobility of the Nation's air transportation system by encouraging non-
Federal investment in critical air traffic control equipment and 
software.
    ``(b) Federal Share.--The Federal share of the cost of an eligible 
project carried out under the program shall not exceed 33 percent. The 
non-Federal share of the cost of an eligible project shall be provided 
from non-Federal sources, including revenues collected pursuant to 
section 40117.
    ``(c) Limitation on Grant Amounts.--No eligible project may receive 
more than $5,000,000 in Federal funds under the program.
    ``(d) Funding.--The Secretary shall use amounts appropriated under 
section 48101(a) to carry out the program.

[[Page 117 STAT. 2517]]

    ``(e) Definitions.--In this section, the following definitions 
apply:
            ``(1) Eligible project.--The term `eligible project' means a 
        project to purchase equipment or software relating to the 
        Nation's air traffic control system that is certified or 
        approved by the Administrator of the Federal Aviation 
        Administration and that promotes safety, efficiency, or 
        mobility. Such projects may include--
                    ``(A) airport-specific air traffic facilities and 
                equipment, including local area augmentation systems, 
                instrument landing systems, weather and wind shear 
                detection equipment, and lighting improvements;
                    ``(B) automation tools to effect improvements in 
                airport capacity, including passive final approach 
                spacing tools and traffic management advisory equipment; 
                and
                    ``(C) equipment and software that enhance airspace 
                control procedures or assist in en route surveillance, 
                including oceanic and offshore flight tracking.
            ``(2) Project sponsor.--The term `project sponsor' means any 
        major user of the national airspace system, as determined by the 
        Secretary, including a public-use airport or a joint venture 
        between a public-use airport and one or more air carriers.

    ``(f) Transfers of Equipment.--Notwithstanding any other provision 
of law, and upon agreement by the Administrator, a project sponsor may 
transfer, without consideration, to the Federal Aviation Administration, 
facilities, equipment, or automation tools, the purchase of which was 
assisted by a grant made under this section, if such facilities, 
equipment or tools meet Federal Aviation Administration operation and 
maintenance criteria.
    ``(g) Guidelines.--The Administrator shall issue advisory guidelines 
on the implementation of the program. The guidelines shall not be 
subject to administrative rulemaking requirements under subchapter II of 
chapter 5 of title 5.''.
    (b) Conforming Amendment.--The analysis for chapter 445 is amended 
by adding at the end the following:

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

SEC. 184. <<NOTE: 49 USC 48101 note.>> FACILITIES AND EQUIPMENT REPORTS.

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

    (b) Sunset Provision.--This section shall cease to be effective 
beginning on the date that is 4 years after the date of enactment of 
this Act.

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

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

[[Page 117 STAT. 2518]]

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

    ``(a) Prohibition.--A <<NOTE: Deadline.>> public agency (as defined 
in section 47102) may not permanently close an airport listed in the 
national plan of integrated airport systems under section 47103 without 
providing written notice to the Administrator of the Federal Aviation 
Administration at least 30 days before the date of the closure.

    ``(b) Publication of Notice.--The <<NOTE: Federal Register, 
publication.>> Administrator shall publish each notice received under 
subsection (a) in the Federal Register.

    ``(c) Civil Penalty.--A public agency violating subsection (a) shall 
be liable for a civil penalty of $10,000 for each day that the airport 
remains closed without having given the notice required by this 
section.''.
    (b) Conforming Amendment.--The analysis for chapter 463 is amended 
by adding at the end the following:

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

SEC. 186. MIDWAY ISLAND AIRPORT.

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

SEC. 187. INTERMODAL PLANNING.

    Section 47106(c)(1)(A) is amended--
            (1) by striking ``and'' at the end of clause (i);
            (2) by adding ``and'' at the end of clause (ii); and
            (3) by adding at the end the following:
                    ``(iii) with respect to an airport development 
                project involving the location of an airport, runway, or 
                major runway extension at a medium or large hub airport, 
                the airport

[[Page 117 STAT. 2519]]

                sponsor has made available to and has provided upon 
                request to the metropolitan planning organization in the 
                area in which the airport is located, if any, a copy of 
                the proposed amendment to the airport layout plan to 
                depict the project and a copy of any airport master plan 
                in which the project is described or depicted;''.

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

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

SEC. 189. LIMITATION ON APPROVAL OF CERTAIN PROGRAMS.

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

SEC. 190. <<NOTE: Alaska.>> CONVEYANCE OF AIRPORT.

    (a) Offer of Conveyance.--Subject to the requirements of this 
section, the Chaluka Corporation is hereby offered ownership of the 
surface estate in the former Nikolski Radio Relay Site on Umnak Island, 
Alaska, and the Aleut Corporation is hereby offered the subsurface 
estate of that Site, in exchange for relinquishment by the Chaluka 
Corporation and the Aleut Corporation of Lot 1, Section 14, Township 81 
South, Range 133 West, Seward Meridian, Alaska.
    (b) Acceptance and Relinquishment.--
            (1) In general.--The Secretary of the Interior shall convey 
        the land as provided in subsection (c) if the Chaluka 
        Corporation and the Aleut Corporation take the actions specified 
        in paragraphs (2) and (3), respectively.
            (2) Chaluka corporation.--
        As <<NOTE: Notification. Deadline.>> a condition for conveyance 
        under subsection (c), the Chaluka Corporation shall notify the 
        Secretary of the Interior within 180 days after the date of 
        enactment of this Act that, by means of a legally binding 
        resolution of the Board of Directors, the Chaluka Corporation--
                    (A) accepts the offer under subsection (a);
                    (B) confirms that the area surveyed by the Bureau of 
                Land Management for the purpose of fulfilling the 
                Chaluka Corporation's final entitlements under sections 
                12(a) and 12(b) of the Alaska Native Claims Settlement 
                Act (43 U.S.C. 1611(a) and (b)), identified as Group 
                Survey Number 773, accurately represents the Chaluka 
                Corporation's final, irrevocable Alaska Native Claims 
                Settlement Act priorities and entitlements unless any 
                tract in Group Survey Number 773 is ultimately not 
                conveyed as the result of an appeal; and
                    (C) relinquishes Lot 1, Section 14, Township 81 
                South, Range 133 West, Seward Meridian, Alaska, which 
                will be charged against the Chaluka Corporation's final 
                entitlement under section 12(b) of the Alaska Native 
                Claims Settlement Act (43 U.S.C. 1611(b)).

[[Page 117 STAT. 2520]]

            (3) Aleut corporation.--
        As <<NOTE: Notification. Deadline.>> a condition for the 
        conveyance under subsection (c), the Aleut Corporation shall 
        notify the Secretary of the Interior within 180 days after the 
        date of enactment of this Act that, by means of a legally 
        binding resolution of the Board of Directors, accompanied by the 
        written legal opinion of counsel as to the legal sufficiency of 
        the Board of Directors' action, the Aleut Corporation--
                    (A) accepts the offer under subsection (a); and
                    (B) relinquishes all rights to Lot 1, Section 14, 
                Township 81 South, Range 133 West, Seward Meridian, 
                Alaska.

    (c) Requirement To Convey.--
            (1) Conveyance.--Notwithstanding the existence of Public 
        Land Order 2374, upon receipt from the Chaluka Corporation and 
        from the Aleut Corporation of their acceptances made in 
        accordance with the requirements of subsections (b)(2) and 
        (b)(3), respectively, of the offer under subsection (a), the 
        Secretary of the Interior shall convey to the Chaluka 
        Corporation the surface estate, and to the Aleut Corporation the 
        subsurface estate, of--
                    (A) Phase I lands as soon as practicable; and
                    (B) each parcel of Phase II lands upon completion of 
                environmental restoration of Phase II lands in 
                accordance with applicable law.
            (2) Phase i liability limit.--Notwithstanding section 107 of 
        the Comprehensive Environmental Response, Compensation, and 
        Liability Act of 1980 (42 U.S.C. 9607), neither the Chaluka 
        Corporation nor the Aleut Corporation shall be subject to any 
        liability for--
                    (A) the presence or release of a hazardous 
                substance, as that term is defined by section 101(14) of 
                that Act (16 U.S.C. 9601(14)), on Phase I lands or the 
                presence of solid waste on Phase I lands, which predates 
                conveyance of those lands to the Chaluka Corporation and 
                the Aleut Corporation pursuant to this section; or
                    (B) any release, from any of the hazardous 
                substances or solid wastes referred to in subparagraph 
                (A), following conveyance of Phase I lands under this 
                section, so long as the presence of or releases from 
                those hazardous substances or solid wastes are not the 
                result of actions by the Chaluka Corporation or the 
                Aleut Corporation.
            (3) Continued access over hill and beach streets.--The 
        surface estate conveyed under paragraph (1) shall be subject to 
        the public's right of access over Hill and Beach Streets, 
        located on Tract B of United States Survey 4904.

    (d) Treatment as ancsa lands.--Conveyances made under subsection (c) 
shall be considered to be conveyances under the Alaska Native Claims 
Settlement Act (43 U.S.C. 1601 et seq.), and are subject to the 
provisions of that Act except sections 14(c)(3), 14(c)(4), and 17(b)(3) 
(43 U.S.C. 1613(c)(3), 1613(c)(4), and 1616(b)(3)).
    (e) Authority To Convey Certain Other Lands.--The Secretary of the 
Interior shall at no cost to the recipient convey ownership of--
            (1) an estate in fee simple in--

[[Page 117 STAT. 2521]]

                    (A) each of Lots 1, 2, 5, 6, and 9 of Tract B of 
                Amended United States Survey 4904 that is the subject of 
                an Aleutian Housing Authority mutual help occupancy 
                agreement, to the Aleutian Housing Authority; and
                    (B) the remainder of such Lots to the current 
                occupants; and
            (2) an estate in fee simple in the Nikolski powerhouse land, 
        to--
                    (A) the Indian Reorganization Act Tribal Government 
                for the Native Village of Nikolski, upon completion of 
                the environmental restoration described in subsection 
                (f), if after the restoration the powerhouse continues 
                to be located on the Nikolski powerhouse land; or
                    (B) the surface estate to the Chaluka Corporation 
                and the subsurface estate to the Aleut Corporation, if 
                after the restoration, the Nikolski powerhouse is no 
                longer located on the Nikolski powerhouse land. -

    (f) Restoration of Powerhouse Land.--The Denali Commission, in 
consultation with the appropriate agency of the State of Alaska, is 
authorized to arrange for environmental restoration, in accordance with 
applicable law, of the areas on, beneath, and adjacent to the Nikolski 
powerhouse land that are contaminated as a result of powerhouse 
operations and activities.
    (g) Access.--As a condition of the conveyance of land under 
subsection (c), the Chaluka Corporation shall permit the United States 
Government, and its agents, employees, and contractors, to have 
unrestricted access to the airfield at Nikolski in perpetuity for site 
investigation, restoration, remediation, and environmental monitoring of 
the former Nikolski Radio Relay Site and reasonable access to that 
airfield, and to other land conveyed under this section, for any 
activity associated with management of lands owned by the United States 
and for other governmental purposes without cost to the Government.
    (h) Survey Requirements.--
            (1) BLM surveys.--The Bureau of Land Management is not 
        required to conduct additional on-the-ground surveys as a result 
        of conveyances under this section. The patent to the Chaluka 
        Corporation may be based on protracted section lines and lotting 
        where relinquishment under subsection (b)(2)(C) results in a 
        change to the Chaluka Corporation's final boundaries.
            (2) Monumentation.--No additional monumentation is required 
        to complete those final boundaries.

    (i) Authorization of Appropriations.--
            (1) Federal agencies.--There is authorized to be 
        appropriated to the Department of the Interior and other 
        appropriate agencies such sums as are necessary to carry out the 
        provisions of this section.
            (2) Powerhouse land restoration.--There is authorized to be 
        appropriated $1,500,000 to reimburse the appropriate State of 
        Alaska agency for costs required for environmental restoration 
        of the Nikolski powerhouse land, in accordance with applicable 
        law.

    (j) Termination.--This section shall cease to be effective if either 
the Chaluka Corporation or the Aleut Corporation affirmatively rejects 
the offer under subsection (a) or if after 180 days following the date 
of enactment of this Act either corporation has

[[Page 117 STAT. 2522]]

not taken the actions specified in subsection (b)(2) or (b)(3), 
respectively.
    (k) Definitions.--In this section, the following definitions apply:
            (1) The term ``Aleut Corporation'' means the regional 
        corporation established under the Alaska Native Claims 
        Settlement Act (43 U.S.C. 1601 et seq.) for the region in which 
        the Native Village of Nikolski, Alaska, is located.
            (2) The term ``Chaluka Corporation'' means the village 
        corporation established under the Alaska Native Claims 
        Settlement Act (43 U.S.C. 1601 et seq.) for the Native Village 
        of Nikolski, Alaska.
            (3) The term ``former Nikolski Radio Relay Site'' means the 
        portions of Tracts A, B, and C of Public Land Order 2374 that 
        are surveyed as Tracts 37, 37A, 38, 39, and 39A of Township 83 
        South, Range 136 West, Seward Meridian, Alaska, and Tract B of 
        United States Survey 4904, Alaska, except--
                    (A) Lots 1, 2, 5, 6, and 9 of Tract B of Amended 
                United States Survey 4904; and
                    (B) the Nikolski powerhouse land.
            (4) The term ``Nikolski powerhouse land'' means the parcel 
        of land upon which is located the power generation building for 
        supplying power to the Native Village of Nikolski, the 
        boundaries of which are described generally as follows: 
        Beginning at the point at which the southerly boundary of Tract 
        39 of Township 83 South, Range 136 West, Seward Meridian, 
        Alaska, intersects the easterly boundary of the road that 
        connects the Native Village of Nikolski and the airfield at 
        Nikolski; then meandering in a northeasterly direction along the 
        easterly boundary of that road until the road intersects the 
        westerly boundary of the road that connects Umnak Lake and the 
        airfield; then meandering in a southerly direction along the 
        western boundary of that Umnak Lake road until that western 
        boundary intersects the southern boundary of such Tract 39; then 
        proceeding eastward along the southern boundary of such Tract 39 
        to the beginning point.
            (5) The term ``Phase I lands'' means Tract 39 of Township 83 
        South, Range 136 West, Seward Meridian, excluding the Nikolski 
        powerhouse land.
            (6) The term ``Phase II lands'' means the portion of the 
        former Nikolski Radio Relay Site not conveyed as Phase I lands.

                       TITLE II--FAA ORGANIZATION

                         Subtitle A--FAA Reform

SEC. 201. MANAGEMENT ADVISORY COMMITTEE MEMBERS.

    Section 106(p) is amended--
            (1) in the subsection heading by inserting ``and Air Traffic 
        Services Board'' after ``Council''; and
            (2) in paragraph (2)--
                    (A) by striking ``consist of'' and all that follows 
                through ``members, who'' and inserting ``consist of 13 
                members, who'';

[[Page 117 STAT. 2523]]

                    (B) by inserting after ``Senate'' in subparagraph 
                (C)(i) ``, except that initial appointments made after 
                May 1, 2003, shall be made by the Secretary of 
                Transportation'';
                    (C) by striking the semicolon at the end of 
                subparagraph (C)(ii) and inserting ``; and''; and
                    (D) by striking ``employees, by--'' in subparagraph 
                (D) and all that follows through the period at the end 
                of subparagraph (E) and inserting ``employees, by the 
                Secretary of Transportation.''.

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

    Section 106(p) is amended--
            (1) by striking paragraph (3) and inserting the following:
            ``(3) Qualifications.--No officer or employee of the United 
        States Government may be appointed to the Council under 
        paragraph (2)(C) or to the Air Traffic Services Committee.'';
            (2) in paragraph (4)(C) by inserting ``or Air Traffic 
        Services Committee'' after ``Council'' each place it appears;
            (3) in paragraph (5) by inserting ``, the Air Traffic 
        Services Committee,'' after ``Council'';
            (4) in paragraph (6)(C)--
                    (A) by striking ``subcommittee'' in the subparagraph 
                heading and inserting ``committee'';
                    (B) by striking ``member'' and inserting 
                ``members'';
                    (C) by striking ``under paragraph (2)(E)'' the first 
                place it appears and inserting ``to the Air Traffic 
                Services Committee''; and
                    (D) by striking ``of the members first'' and all 
                that follows through the period at the end and inserting 
                ``the first members of the Committee shall be the 
                members of the Air Traffic Services Subcommittee of the 
                Council on the day before the date of enactment of the 
                Vision 100--Century of Aviation Reauthorization Act who 
                shall serve in an advisory capacity until such time as 
                the President appoints the members of the Committee 
                under paragraph (7).'';
            (5) in paragraph (6)(D) by striking ``under paragraph 
        (2)(E)'' and inserting ``to the Committee'';
            (6) in paragraph (6)(E) by inserting ``or Committee'' after 
        ``Council'';
            (7) in paragraph (6)(F) by inserting ``of the Council or 
        Committee'' after ``member'';
            (8) in the second sentence of subparagraph (6)(G)--
                    (A) by striking ``Council'' and inserting 
                ``Committee''; and
                    (B) by striking ``appointed under paragraph 
                (2)(E)'';
            (9) in paragraph (6)(H)--
                    (A) by striking ``subcommittee'' in the subparagraph 
                heading and inserting ``committee'';
                    (B) by striking ``under paragraph (2)(E)'' in clause 
                (i) and inserting ``to the Committee''; and
                    (C) by striking ``Air Traffic Services 
                Subcommittee'' and inserting ``Committee'';
            (10) in paragraph (6)(I)(i)--
                    (A) by striking ``appointed under paragraph (2)(E) 
                is'' and inserting ``is serving as''; and

[[Page 117 STAT. 2524]]

                    (B) by striking ``Subcommittee'' and inserting 
                ``Committee'';
            (11) in paragraph (6)(I)(ii)--
                    (A) by striking ``appointed under paragraph (2)(E)'' 
                and inserting ``who is a member of the Committee''; and
                    (B) by striking ``Subcommittee'' and inserting 
                ``Committee'';
            (12) in paragraph (6)(K) by inserting ``or Committee'' after 
        ``Council'';
            (13) in paragraph (6)(L) by inserting ``or Committee'' after 
        ``Council'' each place it appears; and
            (14) in paragraph (7)--
                    (A) by striking ``subcommittee'' in the paragraph 
                heading and inserting ``committee'';
                    (B) by striking subparagraph (A) and inserting the 
                following:
                    ``(A) Establishment.--The Administrator shall 
                establish a committee that is independent of the Council 
                by converting the Air Traffic Services Subcommittee of 
                the Council, as in effect on the day before the date of 
                enactment of the Vision 100--Century of Aviation 
                Reauthorization Act, into such committee. The committee 
                shall be known as the Air Traffic Services Committee (in 
                this subsection referred to as the `Committee').'';
                    (C) by redesignating subparagraphs (B) through (F) 
                as subparagraphs (D) through (H), respectively;
                    (D) by inserting after subparagraph (A) the 
                following:
                    ``(B) Membership and qualifications.--Subject to 
                paragraph (6)(C), the Committee shall consist of five 
                members, one of whom shall be the Administrator and 
                shall serve as 
                chairperson. <<NOTE: President. Congress.>> 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;

[[Page 117 STAT. 2525]]

                          ``(ii) engage in another business related to 
                      aviation or aeronautics; or
                          ``(iii) be a member of any organization that 
                      engages, as a substantial part of its activities, 
                      in activities to influence aviation-related 
                      legislation.'';
                    (E) by striking ``Subcommittee'' each place it 
                appears in subparagraphs (D) and (E) (as redesignated by 
                subparagraph (C) of this paragraph) and inserting 
                ``Committee'';
                    (F) by striking ``approve'' in subparagraph 
                (E)(v)(I) (as so redesignated) and inserting ``make 
                recommendations on'';
                    (G) by striking ``request'' in subparagraph 
                (E)(v)(II) (as so redesignated) and inserting 
                ``recommendations'';
                    (H) by striking ``ensure that the budget request 
                supports'' in subparagraph (E)(v)(III) (as so 
                redesignated) and inserting ``base such budget 
                recommendations on'';
                    (I) by striking ``The Secretary shall submit'' in 
                subparagraph (E) (as so redesignated) and all that 
                follows through the period at the end of such 
                subparagraph (E);
                    (J) by striking subparagraph (F) (as so 
                redesignated) and inserting the following:
                    ``(F) Committee personnel matters and expenses.--
                          ``(i) Personnel matters.--The Committee may 
                      appoint and terminate for purposes of employment 
                      by the Committee any personnel that may be 
                      necessary to enable the Committee to perform its 
                      duties, and may procure temporary and intermittent 
                      services under section 40122.
                          ``(ii) Travel expenses.--Each member of the 
                      Committee shall receive travel expenses, including 
                      per diem in lieu of subsistence, in accordance 
                      with applicable provisions under subchapter I of 
                      chapter 57 of title 5, United States Code.'';
                    (K) in subparagraph (G) (as so redesignated)--
                          (i) by striking clause (i);
                          (ii) by redesignating clauses (ii), (iii), and 
                      (iv) as clauses (i), (ii), and (iii), 
                      respectively; and
                          (iii) by striking ``Subcommittee'' each place 
                      it appears in clauses (i), (ii), and (iii) (as so 
                      redesignated) and inserting ``Committee'';
                    (L) in subparagraph (H) (as so redesignated)--
                          (i) by striking ``Subcommittee'' each place it 
                      appears and inserting ``Committee'';
                          (ii) by striking ``Administrator, the 
                      Council'' each place it appears in clauses (i) and 
                      (ii) and inserting ``Secretary''; and
                          (iii) in clause (ii) by striking ``(B)(i)'' 
                      and inserting ``(D)(i)''; and
                    (M) by adding at the end the following:
                    ``(I) Authorization.--There are authorized to be 
                appropriated to the Committee such sums as may be 
                necessary for the Committee to carry out its 
                activities.''.

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

    Section 106(r) is amended--
            (1) in each of paragraphs (1)(A) and (2)(A) by striking 
        ``Air Traffic Services Subcommittee of the Aviation Management

[[Page 117 STAT. 2526]]

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

SEC. 204. DEPUTY ADMINISTRATOR.

    Section 106(d) is amended--
            (1) by redesignating paragraphs (2) and (3) as (3) and (4), 
        respectively; and
            (2) by inserting after paragraph (1) the following:

    ``(2) The annual rate of basic pay of the Deputy Administrator shall 
be set by the Secretary but shall not exceed the annual rate of basic 
pay payable to the Administrator of the Federal Aviation 
Administration.''.

                        Subtitle B--Miscellaneous

SEC. 221. <<NOTE: 49 USC 44506 note.>> CONTROLLER STAFFING.

    (a) Annual Report.--Beginning <<NOTE: Effective date.>> with the 
submission of the Budget of the United States to the Congress for fiscal 
year 2005, the Administrator of the Federal Aviation Administration 
shall transmit a report to the Senate Committee on Commerce, Science, 
and Transportation and the House of Representatives Committee

[[Page 117 STAT. 2527]]

on Transportation and Infrastructure that describes the overall air 
traffic controller staffing plan, including strategies to address 
anticipated retirement and replacement of air traffic controllers.

    (b) Human Capital Workforce Strategy.--
            (1) Development.--The Administrator shall develop a 
        comprehensive human capital workforce strategy to determine the 
        most effective method for addressing the need for more air 
        traffic controllers that is identified in the June 2002 report 
        of the General Accounting Office.
            (2) Completion date.--Not later than 1 year after the date 
        of enactment of this Act, the Administrator shall complete 
        development of the strategy.
            (3) Report.--Not <<NOTE: Deadline.>> later than 30 days 
        after the date on which the strategy is completed, the 
        Administrator shall transmit to Congress a report describing the 
        strategy.

SEC. 222. WHISTLEBLOWER PROTECTION UNDER ACQUISITION MANAGEMENT SYSTEM.

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

SEC. 223. FAA PURCHASE CARDS.

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

SEC. 224. PROCUREMENT.

    (a) Duties and Powers.--Section 40110(c) is amended--
            (1) by striking ``Administration--'' and all that follows 
        through ``(2) may--'' and inserting ``Administration may--'';
            (2) by striking subparagraph (D);
            (3) by redesignating subparagraphs (A), (B), (C), (E), and 
        (F) as paragraphs (1), (2), (3), (4), and (5), respectively; and
            (4) by moving such paragraphs (1) through (5) 2 ems to the 
        left.

    (b) Acquisition Management System.--Section 40110(d) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``, not later than January 1, 
                1996,''; and
                    (B) by striking ``provides for more timely and cost-
                effective acquisitions of equipment and materials.'' and 
                inserting the following:
        ``provides for--
                    ``(A) more timely and cost-effective acquisitions of 
                equipment, services, property, and materials; and

[[Page 117 STAT. 2528]]

                    ``(B) the resolution of bid protests and contract 
                disputes related thereto, using consensual alternative 
                dispute resolution techniques to the maximum extent 
                practicable.''; and
            (2) by striking paragraph (4), relating to the effective 
        date, and inserting the following:
            ``(4) Adjudication of certain bid protests and contract 
        disputes.--A bid protest or contract dispute that is not 
        addressed or resolved through alternative dispute resolution 
        shall be adjudicated by the Administrator through Dispute 
        Resolution Officers or Special Masters of the Federal Aviation 
        Administration Office of Dispute Resolution for Acquisition, 
        acting pursuant to sections 46102, 46104, 46105, 46106 and 46107 
        and shall be subject to judicial review under section 46110 and 
        to section 504 of title 5.''.

    (c) Authority of Administrator To Acquire Services.--Section 
106(f)(2)(A)(ii) is amended by inserting ``, services,'' after 
``property''.

SEC. 225. DEFINITIONS.

    (a) In General.--Section 40102(a) is amended--
            (1) by redesignating paragraphs (38) through (42) as 
        paragraphs (43) through (47), respectively;
            (2) by inserting after paragraph (37) the following:
            ``(42) `small hub airport' means a commercial service 
        airport (as defined in section 47102) that has at least 0.05 
        percent but less than 0.25 percent of the passenger 
        boardings.'';
            (3) by redesignating paragraphs (33) through (37) as 
        paragraphs (37) through (41) respectively;
            (4) by inserting after paragraph (32) the following:
            ``(36) `passenger boardings'--
                    ``(A) means, unless the context indicates otherwise, 
                revenue passenger boardings in the United States in the 
                prior calendar year on an aircraft in service in air 
                commerce, as the Secretary determines under regulations 
                the Secretary prescribes; and
                    ``(B) includes passengers who continue on an 
                aircraft in international flight that stops at an 
                airport in the 48 contiguous States, Alaska, or Hawaii 
                for a nontraffic purpose.'';
            (5) by redesignating paragraph (32) as paragraph (35);
            (6) by inserting after paragraph (31) the following:
            ``(34) `nonhub airport' means a commercial service airport 
        (as defined in section 47102) that has less than 0.05 percent of 
        the passenger boardings.'';
            (7) by redesignating paragraphs (30) and (31) as paragraphs 
        (32) and (33), respectively;
            (8) by inserting after paragraph (29) the following:
            ``(31) `medium hub airport' means a commercial service 
        airport (as defined in section 47102) that has at least 0.25 
        percent but less than 1.0 percent of the passenger boardings.'';
            (9) by redesignating paragraph (29) as paragraph (30); and
            (10) by inserting after paragraph (28) the following:
            ``(29) `large hub airport' means a commercial service 
        airport (as defined in section 47102) that has at least 1.0 
        percent of the passenger boardings.''.

    (b) Conforming Amendments.--

[[Page 117 STAT. 2529]]

            (1) Air service termination notice.--Section 41719(d) is 
        amended--
                    (A) by striking paragraph (1); and
                    (B) by redesignating paragraphs (2) through (5) as 
                paragraphs (1) through (4), respectively.
            (2) Small community air service.--Section 41731(a) is 
        amended by striking paragraphs (3) through (5).
            (3) Airports not receiving sufficient service.--Section 
        41743 is amended--
                    (A) in subsection (c)(1) by striking ``(as that term 
                is defined in section 41731(a)(5))''; and
                    (B) in subsection (f) by striking ``(as defined in 
                section 41731(a)(3))''.
            (4) Preservation of basic essential air service at single 
        carrier dominated hub airports.--Section 41744(b) is amended by 
        striking ``(as defined in section 41731)''.
            (5) Regional air service incentive program.--Section 41762 
        is amended--
                    (A) by striking paragraphs (11) and (15); and
                    (B) by redesignating paragraphs (12), (13), (14), 
                and (16) as paragraphs (11), (12), (13), and (14), 
                respectively.

SEC. 226. AIR TRAFFIC CONTROLLER RETIREMENT.

    (a) Air Traffic Controller Defined.--
            (1) Civil service retirement system.--Section 8331 of title 
        5, United States Code, is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (27);
                    (B) by striking the period at the end of paragraph 
                (28) and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(29) the term `air traffic controller' or `controller' 
        means--
                    ``(A) a controller within the meaning of section 
                2109(1); and
                    ``(B) a civilian employee of the Department of 
                Transportation or the Department of Defense who is the 
                immediate supervisor of a person described in section 
                2109(1)(B).''.
            (2) Federal employees' retirement system.--Section 8401 of 
        title 5, United States Code, is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (33);
                    (B) by striking the period at the end of paragraph 
                (34) and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(35) the term `air traffic controller' or `controller' 
        means--
                    ``(A) a controller within the meaning of section 
                2109(1); and
                    ``(B) a civilian employee of the Department of 
                Transportation or the Department of Defense who is the 
                immediate supervisor of a person described in section 
                2109(1)(B).''.
            (3) Mandatory separation treatment not affected.--
                    (A) Civil service retirement system.--Section 
                8335(a) of title 5, United States Code, is amended by 
                adding at the end the following: ``For purposes of this 
                subsection, the term `air traffic controller' or 
                `controller' has the meaning given to it under section 
                8331(29)(A).''.
                    (B) Federal employees' retirement system.--Section 
                8425(a) of title 5, United States Code, is amended by 
                adding at the end the following: ``For purposes of this

[[Page 117 STAT. 2530]]

                subsection, the term `air traffic controller' or 
                `controller' has the meaning given to it under section 
                8401(35)(A).''.

    (b) Modified Annuity Computation Rule for Certain Air Traffic 
Controllers Under FERS.--
            (1) In general.--Section 8415 of title 5, United States 
        Code, is amended--
                    (A) by redesignating subsections (e) through (j) as 
                subsections (f) through (k), respectively, and by 
                redesignating the second subsection (i) as subsection 
                (l); and
                    (B) by inserting after subsection (d) the following:

    ``(e) The annuity of an air traffic controller or former air traffic 
controller retiring under section 8412(a) is computed under subsection 
(a), except that if the individual has had at least 5 years of service 
as an air traffic controller as defined by section 2109(1)(A)(i), so 
much of the annuity as is computed with respect to such type of service 
shall be computed by multiplying 1\7/10\ percent of the individual's 
average pay by the years of such service.''.
            (2) Conforming amendments.--(A) Section 8422(d)(2) of title 
        5, United States Code, is amended by striking ``8415(i)'' and 
        inserting ``8415(j)''.
            (B) Section 8452(d)(1) of such title is amended by striking 
        ``subsection (f)'' and inserting ``subsection (g)''.
            (C) Section 8468(b)(1)(A) of such title is amended by 
        striking ``through (g)'' and inserting ``through (h)''.
            (D) Section 302(a) of the Federal Employees' Retirement 
        System Act of 1986 (5 U.S.C. 8331 note) is amended--
                    (i) in paragraph (1)(D)(VI), by striking 
                ``subsection (g)'' and inserting ``subsection (h)'';
                    (ii) in paragraph (9), by striking ``8415(f)'' and 
                inserting ``8415(g)''; and
                    (iii) in paragraph (12)(B)(ii), by striking 
                ``through (f)'' and inserting ``through (g)''.

    (c) Effective <<NOTE: 5 USC 8401 note.>> Date.--
            (1) In general.--This section and the amendments made by 
        this section--
                    (A) shall take effect on the 60th day after the date 
                of enactment of this Act; and
                    (B) <<NOTE: Applicability.>> shall apply with 
                respect to--
                          (i) any annuity entitlement to which is based 
                      on an individual's separation from service 
                      occurring on or after the effective date of this 
                      section; and
                          (ii) any service performed by any such 
                      individual before, on, or after the effective date 
                      of this section, subject to paragraph (2).
            (2) Special rule.--
                    (A) Deposit requirement.--For purposes of 
                determining eligibility for immediate retirement under 
                section 8412(e) of title 5, United States Code, the 
                amendment made by subsection (a)(2) shall, with respect 
                to any service described in subparagraph (B), be 
                disregarded unless there is deposited into the Civil 
                Service Retirement and Disability Fund, with respect to 
                such service, in such time, form, and manner as the 
                Office of Personnel Management by regulation requires, 
                an amount equal to the amount by which--
                          (i) the deductions from pay which would have 
                      been required for such service if the amendments 
                      made

[[Page 117 STAT. 2531]]

                      by subsection (a)(2) had been in effect when such 
                      service was performed, exceeds
                          (ii) the unrefunded deductions or deposits 
                      actually made under subchapter II of chapter 84 of 
                      such title with respect to such service.
                An amount under this subparagraph shall include 
                interest, computed under paragraphs (2) and (3) of 
                section 8334(e) of such title 5.
                    (B) Prior service described.--
                This <<NOTE: Applicability.>> paragraph applies with 
                respect to any service performed by an individual before 
                the effective date of this section as an employee 
                described in section 8401(35)(B) of title 5, United 
                States Code (as amended by subsection (a)(2)).

SEC. 227. DESIGN ORGANIZATION CERTIFICATES.

    (a) General <<NOTE: Effective date. 49 USC 44702 note.>> Authority 
To Issue Certificates.--Effective on the last day of the 7-year period 
beginning on the date of enactment of this Act, section 44702(a) is 
amended by inserting ``design organization certificates,'' after 
``airman certificates,''.

    (b) Design Organization Certificates.--
            (1) Plan.--Not <<NOTE: Deadline. 49 USC 44704 note.>> later 
        than 4 years after the date of enactment of this Act, the 
        Administrator of the Federal Aviation Administration shall 
        transmit to the Committee on Transportation and Infrastructure 
        of the House of Representatives and the Committee on Commerce, 
        Science, and Transportation of the Senate a plan for the 
        development and oversight of a system for certification of 
        design organizations to certify compliance with the requirements 
        and minimum standards prescribed under section 44701(a) of title 
        49, United States Code, for the type certification of aircraft, 
        aircraft engines, propellers, or appliances.
            (2) Issuance of certificates.--Section 44704 is amended by 
        adding at the end the following:

    ``(e) Design Organization Certificates.--
            ``(1) Issuance.--Beginning 7 <<NOTE: Effective date.>> years 
        after the date of enactment of this subsection, the 
        Administrator may issue a design organization certificate to a 
        design organization to authorize the organization to certify 
        compliance with the requirements and minimum standards 
        prescribed under section 44701(a) for the type certification of 
        aircraft, aircraft engines, propellers, or appliances.
            ``(2) Applications.--On receiving an application for a 
        design organization certificate, the Administrator shall examine 
        and rate the design organization submitting the application, in 
        accordance with regulations to be prescribed by the 
        Administrator, to determine whether the design organization has 
        adequate engineering, design, and testing capabilities, 
        standards, and safeguards to ensure that the product being 
        certificated is properly designed and manufactured, performs 
        properly, and meets the regulations and minimum standards 
        prescribed under section 44701(a).
            ``(3) Issuance of type certificates based on design 
        organization certification.--The Administrator may rely on 
        certifications of compliance by a design organization when 
        making a finding under subsection (a).

[[Page 117 STAT. 2532]]

            ``(4) Public safety.--The Administrator shall include in a 
        design organization certificate issued under this subsection 
        terms required in the interest of safety.
            ``(5) No effect on power of revocation.--Nothing in this 
        subsection affects the authority of the Secretary of 
        Transportation to revoke a certificate.''.

    (c) Reinspection and Reexamination.--Section 44709(a) is amended by 
inserting ``design organization, production certificate holder,'' after 
``appliance,''.
    (d) Prohibitions.--Section 44711(a)(7) is amended by striking 
``agency'' and inserting ``agency, design organization certificate, ''.
    (e) Conforming Amendments.--
            (1) Section heading.--Section 44704 is amended by striking 
        the section designation and heading and inserting the following:

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

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

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

SEC. 228. JUDICIAL REVIEW.

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

SEC. 229. <<NOTE: 49 USC 45301 note.>> OVERFLIGHT FEES.

    (a) Adoption and Legalization of Certain Rules.--
            (1) Applicability and effect of certain law.--
        Notwithstanding section 141(d)(1) of the Aviation and 
        Transportation Security Act (49 U.S.C. 44901 note), section 
        45301(b)(1)(B) of title 49, United States Code, is deemed to 
        apply to and to have effect with respect to the authority of the 
        Administrator of the Federal Aviation Administration with 
        respect to the interim final rule and final rule, relating to 
        overflight fees, issued by the Administrator on May 30, 2000, 
        and August 13, 2001, respectively.
            (2) Adoption and legalization.--The interim final rule and 
        final rule referred to in subsection (a), including the fees 
        issued pursuant to those rules, are adopted, legalized, and 
        confirmed as fully to all intents and purposes as if the same 
        had, by prior Act of Congress, been specifically adopted, 
        authorized, and directed as of the date those rules were 
        originally issued.
            (3) Fees to which applicable.--This subsection applies to 
        fees assessed after November 19, 2001, and before April 8, 2003, 
        and fees collected after the requirements of subsection (b) have 
        been met.

    (b) Deferred Collection of Fees.--The Administrator shall defer 
collecting fees under section 45301(a)(1) of title 49, United States 
Code, until the Administrator (1) reports to Congress

[[Page 117 STAT. 2533]]

responding to the issues raised by the court in Air Transport 
Association of Canada v. Federal Aviation Administration and 
Administrator, FAA, decided on April 8, 2003, and (2) consults with 
users and other interested parties regarding the consistency of the fees 
established under such section with the international obligations of the 
United States.
    (c) Enforcement.--The Administrator shall take an appropriate 
enforcement action under subtitle VII of title 49, United States Code, 
against any user that does not pay a fee under section 45301(a)(1) of 
such title.

      TITLE <<NOTE: Aviation Streamlining Approval Process Act of 
2003.>> III--ENVIRONMENTAL PROCESS

              Subtitle A--Aviation Development Streamlining

SEC. 301. <<NOTE: 49 USC 40101 note.>> SHORT TITLE.

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

SEC. 302. <<NOTE: 49 USC 47171 note.>> FINDINGS.

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

SEC. 303. AIRPORT CAPACITY ENHANCEMENT.

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

SEC. 304. AVIATION PROJECT STREAMLINING.

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

[[Page 117 STAT. 2534]]

           ``SUBCHAPTER III--AVIATION DEVELOPMENT STREAMLINING

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

    ``(a) Aviation Project Review Process.--The Secretary of 
Transportation shall develop and implement an expedited and coordinated 
environmental review process for airport capacity enhancement projects 
at congested airports, aviation safety projects, and aviation security 
projects that--
            ``(1) provides for better coordination among the Federal, 
        regional, State, and local agencies concerned with the 
        preparation of environmental impact statements or environmental 
        assessments under the National Environmental Policy Act of 1969 
        (42 U.S.C. 4321 et seq.);
            ``(2) provides that all environmental reviews, analyses, 
        opinions, permits, licenses, and approvals that must be issued 
        or made by a Federal agency or airport sponsor for such a 
        project will be conducted concurrently, to the maximum extent 
        practicable; and
            ``(3) provides that any environmental review, analysis, 
        opinion, permit, license, or approval that must be issued or 
        made by a Federal agency or airport sponsor for such a project 
        will be completed within a time period established by the 
        Secretary, in cooperation with the agencies identified under 
        subsection (d) with respect to the project.

    ``(b) Aviation Projects Subject to a Streamlined Environmental 
Review Process.--
            ``(1) Airport capacity enhancement projects at congested 
        airports.--An airport capacity enhancement project at a 
        congested airport shall be subject to the coordinated and 
        expedited environmental review process requirements set forth in 
        this section.
            ``(2) Aviation safety and aviation security projects.--
                    ``(A) In general.--The Administrator of the Federal 
                Aviation Administration may designate an aviation safety 
                project or aviation security project for priority 
                environmental review. The Administrator may not delegate 
                this designation authority. A designated project shall 
                be subject to the coordinated and expedited 
                environmental review process requirements set forth in 
                this section.
                    ``(B) Project <<NOTE: Guidelines.>> designation 
                criteria.--The Administrator shall establish guidelines 
                for the designation of an aviation safety project or 
                aviation security project for priority environmental 
                review. Such guidelines shall provide for consideration 
                of--
                          ``(i) the importance or urgency of the 
                      project;
                          ``(ii) the potential for undertaking the 
                      environmental review under existing emergency 
                      procedures under the National Environmental Policy 
                      Act of 1969 (42 U.S.C. 4321 et seq.);
                          ``(iii) the need for cooperation and 
                      concurrent reviews by other Federal or State 
                      agencies;
                          ``(iv) the prospect for undue delay if the 
                      project is not designated for priority review; and
                          ``(v) for aviation security projects, the 
                      views of the Department of Homeland Security.

[[Page 117 STAT. 2535]]

    ``(c) High Priority of and Agency Participation in Coordinated 
Reviews.--
            ``(1) High priority for environmental reviews.--Each Federal 
        agency with jurisdiction over an environmental review, analysis, 
        opinion, permit, license, or approval shall accord any such 
        review, analysis, opinion, permit, license, or approval 
        involving an airport capacity enhancement project at a congested 
        airport or a project designated under subsection (b)(2) the 
        highest possible priority and conduct the review, analysis, 
        opinion, permit, license, or approval expeditiously.
            ``(2) Agency participation.--
        Each <<NOTE: Procedures.>> Federal agency described in 
        subsection (d) shall formulate and implement administrative, 
        policy, and procedural mechanisms to enable the agency to 
        participate in the coordinated environmental review process 
        under this section and to ensure completion of environmental 
        reviews, analyses, opinions, permits, licenses, and approvals 
        described in subsection (a) in a timely and environmentally 
        responsible manner.

    ``(d) Identification of Jurisdictional Agencies.--With respect to 
each airport capacity enhancement project at a congested airport or a 
project designated under subsection (b)(2), the Secretary shall 
identify, as soon as practicable, all Federal and State agencies that 
may have jurisdiction over environmental-related matters that may be 
affected by the project or may be required by law to conduct an 
environmental-related review or analysis of the project or determine 
whether to issue an environmental-related permit, license, or approval 
for the project.
    ``(e) State Authority.--Under a coordinated review process being 
implemented under this section by the Secretary with respect to a 
project at an airport within the boundaries of a State, the Governor of 
the State, consistent with State law, may choose to participate in such 
process and provide that all State agencies that have jurisdiction over 
environmental-related matters that may be affected by the project or may 
be required by law to conduct an environmental-related review or 
analysis of the project or determine whether to issue an environmental-
related permit, license, or approval for the project, be subject to the 
process.
    ``(f) Memorandum of Understanding.--The coordinated review process 
developed under this section may be incorporated into a memorandum of 
understanding for a project between the Secretary and the heads of other 
Federal and State agencies identified under subsection (d) with respect 
to the project and, if applicable, the airport sponsor.
    ``(g) Use of Interagency Environmental Impact Statement Teams.--
            ``(1) In general.--The Secretary may utilize an interagency 
        environmental impact statement team to expedite and coordinate 
        the coordinated environmental review process for a project under 
        this section. When utilizing an interagency environmental impact 
        statement team, the Secretary shall invite Federal, State and 
        Tribal agencies with jurisdiction by law, and may invite such 
        agencies with special expertise, to participate on an 
        interagency environmental impact statement team.
            ``(2) Responsibility of interagency environmental impact 
        statement team.--Under a coordinated environmental review 
        process being implemented under this section, the interagency 
        environmental impact statement team shall assist the

[[Page 117 STAT. 2536]]

        Federal Aviation Administration in the preparation of the 
        environmental impact statement. To facilitate timely and 
        efficient environmental review, the team shall agree on agency 
        or Tribal points of contact, protocols for communication among 
        agencies, and deadlines for necessary actions by each individual 
        agency (including the review of environmental analyses, the 
        conduct of required consultation and coordination, and the 
        issuance of environmental opinions, licenses, permits, and 
        approvals). The members of the team may formalize their 
        agreement in a written memorandum.

    ``(h) Lead Agency Responsibility.--The Federal Aviation 
Administration shall be the lead agency for projects designated under 
subsection (b)(2) and airport capacity enhancement projects at congested 
airports and shall be responsible for defining the scope and content of 
the environmental impact statement, consistent with regulations issued 
by the Council on Environmental Quality. Any other Federal agency or 
State agency that is participating in a coordinated environmental review 
process under this section shall give substantial deference, to the 
extent consistent with applicable law and policy, to the aviation 
expertise of the Federal Aviation Administration.
    ``(i) Effect of Failure To Meet Deadline.--
            ``(1) Notification of congress and ceq.--If the Secretary 
        determines that a Federal agency, State agency, or airport 
        sponsor that is participating in a coordinated review process 
        under this section with respect to a project has not met a 
        deadline established under subsection (a)(3) for the project, 
        the Secretary shall notify, within 30 days of the date of such 
        determination, the Committee on Commerce, Science, and 
        Transportation of the Senate, the Committee on Transportation 
        and Infrastructure of the House of Representatives, the Council 
        on Environmental Quality, and the agency or sponsor involved 
        about the failure to meet the deadline.
            ``(2) Agency report.--Not later than 30 days after date of 
        receipt of a notice under paragraph (1), the agency or sponsor 
        involved shall submit a report to the Secretary, the Committee 
        on Transportation and Infrastructure of the House of 
        Representatives, the Committee on Commerce, Science, and 
        Transportation of the Senate, and the Council on Environmental 
        Quality explaining why the agency or sponsor did not meet the 
        deadline and what actions it intends to take to complete or 
        issue the required review, analysis, opinion, permit, license, 
        or approval.

    ``(j) Purpose and Need.--For any environmental review, analysis, 
opinion, permit, license, or approval that must be issued or made by a 
Federal or State agency that is participating in a coordinated review 
process under this section and that requires an analysis of purpose and 
need for the project, the agency, notwithstanding any other provision of 
law, shall be bound by the project purpose and need as defined by the 
Secretary.
    ``(k) Alternatives Analysis.--The Secretary shall determine the 
reasonable alternatives to an airport capacity enhancement project at a 
congested airport or a project designated under subsection (b)(2). Any 
other Federal agency, or State agency that is participating in a 
coordinated review process under this section with respect to the 
project shall consider only those alternatives to the project that the 
Secretary has determined are reasonable.

[[Page 117 STAT. 2537]]

    ``(l) Solicitation and Consideration of Comments.--In applying 
subsections (j) and (k), the Secretary shall solicit and consider 
comments from interested persons and governmental entities in accordance 
with the National Environmental Policy Act of 1969 (42 U.S.C. 4371 et 
seq.).
    ``(m) Monitoring by Task Force.--The Transportation Infrastructure 
Streamlining Task Force, established by Executive Order 13274 (67 Fed. 
Reg. 59449; relating to environmental stewardship and transportation 
infrastructure project reviews), may monitor airport projects that are 
subject to the coordinated review process under this section.

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

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

``Sec. 47173. Airport funding of FAA staff

    ``(a) Acceptance of Sponsor-Provided Funds.--Notwithstanding any 
other provision of law, the Administrator of the Federal Aviation 
Administration may accept funds from an airport sponsor, including funds 
provided to the sponsor under section 47114(c), to hire additional staff 
or obtain the services of consultants in order to facilitate the timely 
processing, review, and completion of environmental activities 
associated with an airport development project.
    ``(b) Administrative Provision.--Instead of payment from an airport 
sponsor from funds apportioned to the sponsor under section 47114, the 
Administrator, with agreement of the sponsor, may transfer funds that 
would otherwise be apportioned to the sponsor under section 47114 to the 
account used by the Administrator for activities described in subsection 
(a).
    ``(c) Receipts Credited as Offsetting Collections.--Notwithstanding 
section 3302 of title 31, any funds accepted under this section, except 
funds transferred pursuant to subsection (b)--
            ``(1) shall be credited as offsetting collections to the 
        account that finances the activities and services for which the 
        funds are accepted;
            ``(2) shall be available for expenditure only to pay the 
        costs of activities and services for which the funds are 
        accepted; and
            ``(3) shall remain available until expended.

[[Page 117 STAT. 2538]]

    ``(d) Maintenance of Effort.--No funds may be accepted pursuant to 
subsection (a), or transferred pursuant to subsection (b), in any fiscal 
year in which the Federal Aviation Administration does not allocate at 
least the amount it expended in fiscal year 2002 (excluding amounts 
accepted pursuant to section 337 of the Department of Transportation and 
Related Agencies Appropriations Act, 2002 (115 Stat. 862)) for the 
activities described in subsection (a).

``Sec. 47174. Authorization of appropriations

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

``Sec. 47175. Definitions

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

    (b) Conforming Amendment.--The analysis for such chapter is amended 
by adding at the end the following:


[[Page 117 STAT. 2539]]



           ``SUBCHAPTER III--AVIATION DEVELOPMENT STREAMLINING

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

SEC. 305. ELIMINATION OF DUPLICATIVE REQUIREMENTS.

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

SEC. 306. CONSTRUCTION OF CERTAIN AIRPORT CAPACITY PROJECTS.

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

SEC. 307. <<NOTE: Deadlines. Publications.>> ISSUANCE OF ORDERS.

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

SEC. 308. <<NOTE: 49 USC 47171 note.>> LIMITATIONS.

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

[[Page 117 STAT. 2540]]

        et seq.) and the regulations issued by the Council on 
        Environmental Quality to carry out such Act.

SEC. 309. <<NOTE: 49 USC 47171 note.>> RELATIONSHIP TO OTHER 
            REQUIREMENTS.

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

                        Subtitle B--Miscellaneous

SEC. 321. <<NOTE: 49 USC 40101 note.>> REPORT ON LONG-TERM ENVIRONMENTAL 
            IMPROVEMENTS.

    (a) In General.--The Secretary of Transportation, in consultation 
with the Administrator of the National Aeronautics and Space 
Administration, shall conduct a study of ways to reduce aircraft noise 
and emissions and to increase aircraft fuel efficiency. The study 
shall--
            (1) explore new operational procedures for aircraft to 
        achieve those goals;
            (2) identify both near-term and long-term options to achieve 
        those goals;
            (3) identify infrastructure changes that would contribute to 
        attainment of those goals;
            (4) identify emerging technologies that might contribute to 
        attainment of those goals;
            (5) develop a research plan for application of such emerging 
        technologies, including new combustor and engine design concepts 
        and methodologies for designing high bypass ratio turbofan 
        engines so as to minimize the effects on climate change per unit 
        of production of thrust and flight speed; and
            (6) develop an implementation plan for exploiting such 
        emerging technologies to attain those goals.

    (b) Report.--The <<NOTE: Deadline.>> Secretary shall transmit a 
report on the study to the Senate Committee on Commerce, Science, and 
Transportation and the House of Representatives Committee on 
Transportation and Infrastructure within 1 year after the date of 
enactment of this Act.

    (c) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary $500,000 for fiscal year 2004 to carry out 
this section.

SEC. 322. <<NOTE: 49 USC 47503 note.>> NOISE DISCLOSURE.

    (a) Noise Disclosure System Implementation Study.--The Administrator 
of the Federal Aviation Administration shall conduct a study to 
determine the feasibility of developing a program under which 
prospective home buyers of property located in the vicinity of an 
airport could be notified of information derived from noise exposure 
maps that may affect the use and enjoyment of the property. The study 
shall assess the scope, administration, usefulness, and burdensomeness 
of any such program, the costs and benefits of such a program, and 
whether participation in such a program should be voluntary or 
mandatory.
    (b) Public Availability of Noise Exposure Maps.--The Administrator 
shall make noise exposure and land use information

[[Page 117 STAT. 2541]]

from noise exposure maps available to the public via the Internet on its 
website in an appropriate format.
    (c) Noise Exposure Map.--In this section, the term ``noise exposure 
map'' means a noise exposure map prepared under section 47503 of title 
49, United States Code.

SEC. 323. OVERFLIGHTS OF NATIONAL PARKS.

    (a) In General.--Section 40128 is amended--
            (1) in subsection (a)(1) by inserting ``, as defined by this 
        section,'' after ``lands'' the first place it appears;
            (2) in subsections (b)(3)(A) and (b)(3)(B) by inserting 
        ``over a national park'' after ``operations'';
            (3) in subsection (b)(3)(C) by inserting ``over a national 
        park that are also'' after ``operations'';
            (4) in subsection (b)(3)(D) by striking ``at the park'' and 
        inserting ``over a national park'';
            (5) in subsection (b)(3)(E) by inserting ``over a national 
        park'' after ``operations'' the first place it appears;
            (6) in subsections (c)(2)(A)(i) and (c)(2)(B) by inserting 
        ``over a national park'' after ``operations'';
            (7) in subsection (f)(1) by inserting ``over a national 
        park'' after ``operation'';
            (8) in subsection (f)(4)(A)--
                    (A) by striking ``commercial air tour operation'' 
                and inserting ``commercial air tour operation over a 
                national park''; and
                    (B) by striking ``park, or over tribal lands,'' and 
                inserting ``park (except the Grand Canyon National 
                Park), or over tribal lands (except those within or 
                abutting the Grand Canyon National Park),'';
            (9) in subsection (f)(4)(B) by inserting ``over a national 
        park'' after ``operation''; and
            (10) in the heading for paragraph (4) of subsection (f) by 
        inserting ``over a national park'' after ``operation''.

    (b) Quiet <<NOTE: 49 USC 40128 note.>> Technology Rulemaking for Air 
Tours Over Grand Canyon National Park.--
            (1) Deadline for rule.--No later than January 2005, the 
        Secretary of Transportation shall issue a final rule to 
        establish standards for quiet technology that are reasonably 
        achievable at Grand Canyon National Park, based on the 
        Supplemental Notice of Proposed Rulemaking on Noise Limitations 
        for Aircraft Operations in the Vicinity of Grand Canyon National 
        Park, published in the Federal Register on March 24, 2003.
            (2) Resolution of disputes.--Subject to applicable 
        administrative law and procedures, if the Secretary determines 
        that a dispute among interested parties (including outside 
        groups) or government agencies cannot be resolved within a 
        reasonable time frame and could delay finalizing the rulemaking 
        described in subsection (a), or implementation of final 
        standards under such rule, due to controversy over adoption of 
        quiet technology routes, establishment of incentives to 
        encourage adoption of such routes, establishment of incentives 
        to encourage adoption of quite technology, or other measures to 
        achieve substantial restoration of natural quiet, the Secretary 
        shall refer such dispute to a recognized center for 
        environmental conflict resolution.

[[Page 117 STAT. 2542]]

SEC. 324. NOISE EXPOSURE MAPS.

    Section 47503 is amended--
            (1) in subsection (a) by striking ``1985,'' and inserting 
        ``a forecast period that is at least 5 years in the future''; 
        and
            (2) by striking subsection (b) and inserting the following:

    ``(b) Revised Maps.--If, in an area surrounding an airport, a change 
in the operation of the airport would establish a substantial new 
noncompatible use, or would significantly reduce noise over existing 
noncompatible uses, that is not reflected in either the existing 
conditions map or forecast map currently on file with the Federal 
Aviation Administration, the airport operator shall submit a revised 
noise exposure map to the Secretary showing the new noncompatible use or 
noise reduction.''.

SEC. 325. <<NOTE: Deadline. 49 USC 47508 note.>> IMPLEMENTATION OF 
            CHAPTER 4 NOISE STANDARDS.

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

SEC. 326. <<NOTE: 49 USC 40101 note.>> REDUCTION OF NOISE AND EMISSIONS 
            FROM CIVILIAN AIRCRAFT.

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

SEC. 327. SPECIAL RULE FOR AIRPORT IN ILLINOIS.

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

                 TITLE IV--AIRLINE SERVICE IMPROVEMENTS

                 Subtitle A--Small Community Air Service

SEC. 401. EXEMPTION FROM HOLD-IN REQUIREMENTS.

    Section 41734 is amended by adding at the end the following:
    ``(i) Exemption From Hold-In Requirements.--If, after the date of 
enactment of this subsection, an air carrier commences

[[Page 117 STAT. 2543]]

air transportation to an eligible place that is not receiving scheduled 
passenger air service as a result of the failure of the eligible place 
to meet requirements contained in an appropriations Act, the air carrier 
shall not be subject to the requirements of subsections (b) and (c) with 
respect to such air transportation.''.

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

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

    (b) Effective Date.--The <<NOTE: 49 USC 41737 note.>> amendment made 
by subsection (a) shall take effect 30 days after the date of enactment 
of this Act.

SEC. 403. JOINT PROPOSALS.

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

SEC. 404. ESSENTIAL AIR SERVICE AUTHORIZATION.

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

[[Page 117 STAT. 2544]]

            (3) by striking subsection (c).

SEC. 405. COMMUNITY AND REGIONAL CHOICE PROGRAMS.

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

``Sec. 41745. Community and regional choice programs

    ``(a) Alternate Essential Air Service Pilot Program.--
            ``(1) Establishment.--The Secretary of Transportation shall 
        establish an alternate essential air service pilot program in 
        accordance with the requirements of this section.
            ``(2) Assistance to eligible places.--In carrying out the 
        program, the Secretary, instead of paying compensation to an air 
        carrier to provide essential air service to an eligible place, 
        may provide assistance directly to a unit of local government 
        having jurisdiction over the eligible place or a State within 
        the boundaries of which the eligible place is located.
            ``(3) Use of assistance.--A unit of local government or 
        State receiving assistance for an eligible place under the 
        program may use the assistance for any of the following 
        purposes:
                    ``(A) To provide assistance to air carriers that 
                will use smaller equipment to provide the service and to 
                consider increasing the frequency of service using such 
                smaller equipment if the Secretary determines that 
                passenger safety would not be compromised by the use of 
                such smaller equipment and if the State or unit of local 
                government waives the minimum service requirements under 
                section 41732(b).
                    ``(B) To provide assistance to an air carrier to 
                provide on-demand air taxi service to and from the 
                eligible place.
                    ``(C) To provide assistance to a person to provide 
                scheduled or on-demand surface transportation to and 
                from the eligible place and an airport in another place.
                    ``(D) In combination with other units of local 
                government in the same region, to provide transportation 
                services to and from all the eligible places in that 
                region at an airport or other transportation center that 
                can serve all the eligible places in that region.
                    ``(E) To purchase aircraft to provide transportation 
                to and from the eligible place or to purchase a 
                fractional share in an aircraft to provide such 
                transportation after the effective date of a rule the 
                Secretary issues relating to fractional ownership.
                    ``(F) To pay for other transportation or related 
                services that the Secretary may permit.

    ``(b) Community Flexibility Pilot Program.--
            ``(1) In general.--The Secretary shall establish a pilot 
        program for not more than 10 eligible places or consortia of 
        units of local government.
            ``(2) Election.--Under the program, the sponsor of an 
        airport serving an eligible place may elect to forego any 
        essential air service for which compensation is being provided 
        under this subchapter for a 10-year period in exchange for a 
        grant from the Secretary equal in value to twice the 
        compensation paid to provide such service in the most recent 12-
        month period.

[[Page 117 STAT. 2545]]

            ``(3) Grant.--Notwithstanding any other provision of law, 
        the Secretary shall make a grant to each airport sponsor 
        participating in the program for use on any project that--
                    ``(A) is eligible for assistance under chapter 471 
                and complies with the requirements of that chapter;
                    ``(B) is located on the airport property; or
                    ``(C) will improve airport facilities in a way that 
                would make such facilities more usable for general 
                aviation.

    ``(c) Fractionally Owned Aircraft.--After the effective date of the 
rule referred to in subsection (a)(3)(E), only those operating rules 
that relate to an aircraft that is fractionally owned apply when an 
aircraft described in subsection (a)(3)(E) is used to provide 
transportation described in subsection (a)(3)(E).
    ``(d) Applications.--
            ``(1) In general.--An entity seeking to participate in a 
        program under this section shall submit to the Secretary an 
        application in such form and containing such information as the 
        Secretary may require.
            ``(2) Required information.--At a minimum, the application 
        shall include--
                    ``(A) a statement of the amount of compensation or 
                assistance required; and
                    ``(B) a description of how the compensation or 
                assistance will be used.

    ``(e) Participation Requirements.--An eligible place for which 
compensation or assistance is provided under this section in a fiscal 
year shall not be eligible in that fiscal year for the essential air 
service that it would otherwise be entitled to under this subchapter.
    ``(f) Subsequent Participation.--A unit of local government 
participating in the program under this subsection (a) in a fiscal year 
shall not be prohibited from participating in the basic essential air 
service program under this subchapter in a subsequent fiscal year if 
such unit is otherwise eligible to participate in such program.
    ``(g) Funding.--Amounts appropriated or otherwise made available to 
carry out the essential air service program under this subchapter shall 
be available to carry out this section.''.

SEC. 406. <<NOTE: 49 USC 41731 note.>> CODE-SHARING PILOT PROGRAM.

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

SEC. 407. TRACKING SERVICE.

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

[[Page 117 STAT. 2546]]

``Sec. 41746. Tracking service

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

SEC. 408. EAS LOCAL PARTICIPATION PROGRAM.

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

``Sec. 41747. EAS local participation program

    ``(a) In General.--The Secretary of Transportation shall establish a 
pilot program under which not more than 10 designated essential air 
service communities located in proximity to hub airports are required to 
assume 10 percent of their essential air service subsidy costs for a 4-
year period.
    ``(b) Designation of Communities.--
            ``(1) In general.--The Secretary may not designate any 
        community under this section unless it is located within 100 
        miles by road of a hub airport and is not located in a 
        noncontiguous State. In making the designation, the Secretary 
        may take into consideration the total traveltime between a 
        community and the nearest hub airport, taking into account 
        terrain, traffic, weather, road conditions, and other relevant 
        factors.
            ``(2) One community per state.--The Secretary may not 
        designate--
                    ``(A) more than 1 community per State under this 
                section; or
                    ``(B) a community in a State in which another 
                community that is eligible to participate in the 
                essential air service program has elected not to 
                participate in the essential air service program as part 
                of a pilot program under section 41745.

    ``(c) Appeal of Designation.--A community may appeal its designation 
under this section. The Secretary may withdraw the designation of a 
community under this section based on--
            ``(1) the airport sponsor's ability to pay; or
            ``(2) the relative lack of financial resources in a 
        community, based on a comparison of the median income of the 
        community with other communities in the State.

    ``(d) Non-Federal Share.--
            ``(1) Non-federal amounts.--For purposes of this section, 
        the non-Federal portion of the essential air service subsidy may 
        be derived from contributions in kind, or through reduction in 
        the amount of the essential air service subsidy through 
        reduction of air carrier costs, increased ridership, prepurchase 
        of tickets, or other means. The Secretary shall provide 
        assistance to designated communities in identifying potential 
        means of reducing the amount of the subsidy without adversely 
        affecting air transportation service to the community.
            ``(2) Application with other matching requirements.--This 
        section shall apply to the Federal share of essential air

[[Page 117 STAT. 2547]]

        service provided this subchapter, after the application of any 
        other non-Federal share matching requirements imposed by law.

    ``(e) Eligibility for Other Programs Not Affected.--Nothing in this 
section affects the eligibility of a community or consortium of 
communities, an airport sponsor, or any other person to participate in 
any program authorized by this subchapter. A community designated under 
this section may participate in any program (including pilot programs) 
authorized by this subchapter for which it is otherwise eligible--
            ``(1) without regard to any limitation on the number of 
        communities that may participate in that program; and
            ``(2) without reducing the number of other communities that 
        may participate in that program.

    ``(f) Secretary to Report to Congress on Impact.--The Secretary 
shall transmit a report to the Committee on Commerce, Science, and 
Transportation of the Senate and the Committee on Transportation and 
Infrastructure of the House of Representatives on--
            ``(1) the economic condition of communities designated under 
        this section before their designation;
            ``(2) the impact of designation under this section on such 
        communities at the end of each of the 3 years following their 
        designation; and
            ``(3) the impact of designation on air traffic patterns 
        affecting air transportation to and from communities designated 
        under this section.''.

    (b) Conforming Amendment.--The analysis for subchapter II of chapter 
417 is amended by adding at the end the following:

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

SEC. 409. <<NOTE: 49 USC 41731 note.>> 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--

[[Page 117 STAT. 2548]]

            (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 <<NOTE: Deadline.>> 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 <<NOTE: Termination 
date.>> final order issued under subsection (c) shall terminate on 
September 30, 2007.

SEC. 410. <<NOTE: 49 USC 41748 note.>> INCENTIVE PROGRAM.

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

    (b) Marketing Program.--Subchapter II of chapter 417 is further 
amended by adding at the end the following:

``Sec. 41748. Marketing program

    ``(a) In General.--The Secretary of Transportation shall establish a 
marketing incentive program for eligible places that receive subsidized 
service by an air carrier under section 41733. Under the program, the 
sponsor of the airport serving such an eligible place may receive a 
grant of not more than $50,000 in a fiscal year to develop and implement 
a marketing plan to increase passenger boardings and the level of 
passenger usage of its airport facilities.
    ``(b) Matching Requirement; Success Bonuses--
            ``(1) In general.--Except as provided in paragraphs (2) and 
        (3), not less than 25 percent of the publicly financed costs 
        associated with a marketing plan to be developed and implemented 
        under this section shall come from non-Federal sources. For 
        purposes of this section--
                    ``(A) the non-Federal portion of the publicly 
                financed costs may be derived from contributions in 
                kind; and
                    ``(B) matching contributions from a State or unit of 
                local government may not be derived, directly or 
                indirectly, from Federal funds, but the use by the State 
                or unit of local government of proceeds from the sale of 
                bonds to provide the matching contribution is not 
                considered to be a contribution derived directly or 
                indirectly from Federal funds, without regard to the 
                Federal income tax treatment

[[Page 117 STAT. 2549]]

                of interest paid on those bonds or the Federal income 
                tax treatment of those bonds.
            ``(2) Bonus for 25-percent increase in usage.--Except as 
        provided in paragraph (3), if, after any 12-month period during 
        which a marketing plan has been in effect under this section 
        with respect to an eligible place, the Secretary determines that 
        the marketing plan has increased average monthly boardings, or 
        the level of passenger usage, at the airport serving the 
        eligible place, by 25 percent or more, then only 10 percent of 
        the publicly financed costs associated with the marketing plan 
        shall be required to come from non-Federal sources under this 
        subsection for the following 12-month period.
            ``(3) Bonus for 50-percent increase in usage.--If, after any 
        12-month period during which a marketing plan has been in effect 
        under this section with respect to an eligible place, the 
        Secretary determines that the marketing plan has increased 
        average monthly boardings, or the level of passenger usage, at 
        the airport serving the eligible place, by 50 percent or more, 
        then no portion of the publicly financed costs associated with 
        the marketing plan shall be required to come from non-Federal 
        sources under this subsection for the following 12-month 
        period.''.

    (b) Conforming Amendment.--The analysis for subchapter II of chapter 
417 is further amended by adding at the end the following:

``41748. Marketing program.''.

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

    (a) Establishment.--There is established a commission to be known as 
the ``National Commission on Small Community Air Service'' (in this 
section referred to as the ``Commission'').
    (b) Membership.--
            (1) Composition.--The Commission shall be composed of nine 
        members of whom--
                    (A) three members shall be appointed by the 
                Secretary;
                    (B) two members shall be appointed by the majority 
                leader of the Senate;
                    (C) one member shall be appointed by the minority 
                leader of the Senate;
                    (D) two members shall be appointed by the Speaker of 
                the House of Representatives; and
                    (E) one member shall be appointed by the minority 
                leader of the House of Representatives.
            (2) Qualifications.--Of the members appointed by the 
        Secretary under paragraph (1)(A)--
                    (A) one member shall be a representative of a 
                regional airline;
                    (B) one member shall be a representative of a small 
                hub airport or nonhub airport (as such terms are defined 
                in section 40102 of title 49, United States Code); and
                    (C) one member shall be a representative of a State 
                aviation agency.
            (3) Terms.--Members shall be appointed for the life of the 
        Commission.

[[Page 117 STAT. 2550]]

            (4) Vacancies.--A vacancy in the Commission shall be filled 
        in the manner in which the original appointment was made.
            (5) Travel expenses.--Members shall serve without pay but 
        shall receive travel expenses, including per diem in lieu of 
        subsistence, in accordance with subchapter I of chapter 57 of 
        title 5, United States Code.

    (c) Chairperson.--The Secretary shall designate, from among the 
individuals appointed under subsection (b)(1), an individual to serve as 
chairperson of the Commission.
    (d) Duties.--
            (1) Study.--The Commission shall undertake a study of--
                    (A) the challenges faced by small communities in the 
                United States with respect to retaining and enhancing 
                their scheduled commercial air service; and
                    (B) whether the existing Federal programs charged 
                with helping small communities are adequate for them to 
                retain and enhance their existing air service.
            (2) Essential air service communities.--In conducting the 
        study, the Commission shall pay particular attention to the 
        state of scheduled commercial air service in communities 
        currently served by the essential air service program.

    (e) Recommendations.--Based on the results of the study under 
subsection (d), the Commission shall make such recommendations as it 
considers necessary to--
            (1) improve the state of scheduled commercial air service at 
        small communities in the United States, especially communities 
        described in subsection (d)(2); and
            (2) improve the ability of small communities to retain and 
        enhance their existing air service.

    (f) Report.--Not <<NOTE: Deadline.>> later than 6 months after the 
date on which initial appointments of members to the Commission are 
completed, the Commission shall transmit to the President and Congress a 
report on the activities of the Commission, including recommendations 
made by the Commission under subsection (e).

    (g) Commission Panels.--The <<NOTE: Establishment.>> chairperson of 
the Commission shall establish such panels consisting of members of the 
Commission as the chairperson determines appropriate to carry out the 
functions of the Commission.

    (h) Commission Personnel Matters.--
            (1) Staff.--The Commission may appoint and fix the pay of 
        such personnel as it considers appropriate.
            (2) Staff of federal agencies.--Upon request of the 
        chairperson of the Commission, the head of any department or 
        agency of the United States may detail, on a reimbursable basis, 
        any of the personnel of that department or agency to the 
        Commission to assist it in carrying out its duties under this 
        section.
            (3) Other staff and support.--Upon the request of the 
        Commission, or a panel of the Commission, the Secretary shall 
        provide the Commission or panel with professional and 
        administrative staff and other support, on a reimbursable basis, 
        to assist the Commission or panel in carrying out its 
        responsibilities.

    (i) Obtaining Official Data.--The Commission may secure directly 
from any department or agency of the United States information (other 
than information required by any statute of

[[Page 117 STAT. 2551]]

the United States to be kept confidential by such department or agency) 
necessary for the Commission to carry out its duties under this section. 
Upon request of the chairperson of the Commission, the head of that 
department or agency shall furnish such nonconfidential information to 
the Commission.
    (j) Termination.--The Commission shall terminate on the 30th day 
following the date of transmittal of the report under subsection (f).
    (k) Applicability of the Federal Advisory Committee Act.--The 
Federal Advisory Committee Act (5 U.S.C. App.) shall not apply to the 
Commission.
    (l) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary $250,000 to be used to fund the 
Commission.

SEC. 412. SMALL COMMUNITY AIR SERVICE.

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

                        Subtitle B--Miscellaneous

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

    Section 329 is amended by adding at the end the following:
    ``(e) Incidents and Complaints Involving Passenger and Baggage 
Security Screening.--

[[Page 117 STAT. 2552]]

            ``(1) Publication of data.--The Secretary of Transportation 
        shall publish data on incidents and complaints involving 
        passenger and baggage security screening in a manner comparable 
        to other consumer complaint and incident data.
            ``(2) Monthly reports from secretary of homeland security.--
        To assist in the publication of data under paragraph (1), the 
        Secretary of Transportation may request the Secretary of 
        Homeland Security to periodically report on the number of 
        complaints about security screening received by the Secretary of 
        Homeland Security.''.

SEC. 422. DELAY REDUCTION ACTIONS.

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

``Sec. 41722. Delay reduction actions

    ``(a) Scheduling Reduction Meetings.--The Secretary of 
Transportation may request that air carriers meet with the Administrator 
of the Federal Aviation Administration to discuss flight reductions at 
severely congested airports to reduce overscheduling and flight delays 
during hours of peak operation if--
            ``(1) the Administrator determines that it is necessary to 
        convene such a meeting; and
            ``(2) the Secretary determines that the meeting is necessary 
        to meet a serious transportation need or achieve an important 
        public benefit.

    ``(b) Meeting Conditions.--Any meeting under subsection (a)--
            ``(1) shall be chaired by the Administrator;
            ``(2) shall be open to all scheduled air carriers; and
            ``(3) shall be limited to discussions involving the airports 
        and time periods described in the Administrator's determination.

    ``(c) Flight Reduction Targets.--Before any such meeting is held, 
the Administrator shall establish flight reduction targets for the 
meeting and notify the attending air carriers of those targets not less 
than 48 hours before the meeting.
    ``(d) Delay Reduction Offers.--An air carrier attending the meeting 
shall make any offer to meet a flight reduction target to the 
Administrator rather than to another carrier.
    ``(e) Transcript.--The Administrator <<NOTE: Public 
information. Deadline.>> shall ensure that a transcript of the meeting 
is kept and made available to the public not later than 3 business days 
after the conclusion of the meeting.''.

    (b) Conforming Amendment.--The analysis for chapter 417 is amended 
by striking the item relating to section 41721 and inserting the 
following:

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

SEC. 423. COLLABORATIVE DECISIONMAKING PILOT PROGRAM.

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

``Sec. 40129. Collaborative decisionmaking pilot program

    ``(a) Establishment.--Not <<NOTE: Deadline.>> later than 90 days 
after the date of enactment of this section, the Administrator of the 
Federal Aviation Administration shall establish a collaborative 
decisionmaking pilot program in accordance with this section.

[[Page 117 STAT. 2553]]

    ``(b) Duration.--Except as provided in subsection (k), the pilot 
program shall be in effect for a period of 2 years.
    ``(c) Guidelines.--
            ``(1) Issuance.--The Administrator, with the concurrence of 
        the Attorney General, shall issue guidelines concerning the 
        pilot program. Such guidelines, at a minimum, shall--
                    ``(A) define a capacity reduction event;
                    ``(B) establish the criteria and process for 
                determining when a capacity reduction event exists that 
                warrants the use of collaborative decisionmaking among 
                carriers at airports participating in the pilot program; 
                and
                    ``(C) prescribe the methods of communication to be 
                implemented among carriers during such an event.
            ``(2) Views.--The Administrator may obtain the views of 
        interested parties in issuing the guidelines.

    ``(d) Effect of Determination of Existence of Capacity Reduction 
Event.--Upon a determination by the Administrator that a capacity 
reduction event exists, the Administrator may authorize air carriers and 
foreign air carriers operating at an airport participating in the pilot 
program to communicate for a period of time not to exceed 24 hours with 
each other concerning changes in their respective flight schedules in 
order to use air traffic capacity most effectively. The Administration 
shall facilitate and monitor such communication. The Attorney General, 
or the Attorney General's designee, may monitor such communication.
    ``(e) Selection <<NOTE: Deadline.>> of Participating Airports.--Not 
later than 30 days after the date on which the Administrator establishes 
the pilot program, the Administrator shall select 2 airports to 
participate in the pilot program from among the most capacity-
constrained airports in the Nation based on the Administration's Airport 
Capacity Benchmark Report 2001 or more recent data on airport capacity 
that is available to the Administrator. The Administrator shall select 
an airport for participation in the pilot program if the Administrator 
determines that collaborative decisionmaking among air carriers and 
foreign air carriers would reduce delays at the airport and have 
beneficial effects on reducing delays in the national airspace system as 
a whole.

    ``(f) Eligibility of Air Carriers.--An air carrier or foreign air 
carrier operating at an airport selected to participate in the pilot 
program is eligible to participate in the pilot program if the 
Administrator determines that the carrier has the operational and 
communications capability to participate in the pilot program.
    ``(g) Modification or Termination of Pilot Program at an Airport.--
The Administrator, with the concurrence of the Attorney General, may 
modify or end the pilot program at an airport before the term of the 
pilot program has expired, or may ban an air carrier or foreign air 
carrier from participating in the program, if the Administrator 
determines that the purpose of the pilot program is not being furthered 
by participation of the airport or air carrier or if the Secretary of 
Transportation, with the concurrence of the Attorney General, finds that 
the pilot program or the participation of an air carrier or foreign air 
carrier in the pilot program has had, or is having, an adverse effect on 
competition among carriers.
    ``(h) Antitrust Immunity.--
            ``(1) In general.--Unless, within 5 days after receiving 
        notice from the Secretary of the Secretary's intention to 
        exercise

[[Page 117 STAT. 2554]]

        authority under this subsection, the Attorney General submits to 
        the Secretary a written objection to such action, including 
        reasons for such objection, the Secretary may exempt an air 
        carrier's or foreign air carrier's activities that are necessary 
        to participate in the pilot program under this section from the 
        antitrust laws for the sole purpose of participating in the 
        pilot program. Such exemption shall not extend to any 
        discussions, agreements, or activities outside the scope of the 
        pilot program.
            ``(2) Antitrust laws defined.--In this section, the term 
        `antitrust laws' has the meaning given that term in the first 
        section of the Clayton Act (15 U.S.C. 12).

    ``(i) Consultation With Attorney General.--The Secretary shall 
consult with the Attorney General regarding the design and 
implementation of the pilot program, including determining whether a 
limit should be set on the number of occasions collaborative 
decisionmaking could be employed during the initial 2-year period of the 
pilot program.
    ``(j) Evaluation.--
            ``(1) In general.--Before the expiration of the 2-year 
        period for which the pilot program is authorized under 
        subsection (b), the Administrator shall determine whether the 
        pilot program has facilitated more effective use of air traffic 
        capacity and the Secretary, with the concurrence of the Attorney 
        General, shall determine whether the pilot program has had an 
        adverse effect on airline competition or the availability of air 
        services to communities. The Administrator shall also examine 
        whether capacity benefits resulting from the participation in 
        the pilot program of an airport resulted in capacity benefits to 
        other parts of the national airspace system.
            ``(2) Obtaining necessary data.--The Administrator may 
        require participating air carriers and airports to provide data 
        necessary to evaluate the pilot program's impact.

    ``(k) Extension of Pilot Program.--At the end of the 2-year period 
for which the pilot program is authorized, the Administrator, with the 
concurrence of the Attorney General, may continue the pilot program for 
an additional 2 years and expand participation in the program to up to 7 
additional airports if the Administrator determines pursuant to 
subsection (j) that the pilot program has facilitated more effective use 
of air traffic capacity and if the Secretary, with the concurrence of 
the Attorney General, determines that the pilot program has had no 
adverse effect on airline competition or the availability of air 
services to communities. The Administrator shall select the additional 
airports to participate in the extended pilot program in the same manner 
in which airports were initially selected to participate.''.
    (b) Conforming Amendment.--The analysis for chapter 401 is amended 
by adding at the end the following:

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

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

    Section 47107 is amended by adding at the end the following:
    ``(s) Competition Disclosure Requirement.--
            ``(1) In general.--The Secretary of Transportation may 
        approve an application under this subchapter for an airport 
        development project grant for a large hub airport or a medium

[[Page 117 STAT. 2555]]

        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 <<NOTE: Deadlines. Reports.>> February 1 and August 1 of each 
        year, an airport that during the previous 6-month period has 
        been unable to accommodate one or more requests by an air 
        carrier for access to gates or other facilities at that airport 
        in order to provide service to the airport or to expand service 
        at the airport shall transmit a report to the Secretary that--
                    ``(A) describes the requests;
                    ``(B) provides an explanation as to why the requests 
                could not be accommodated; and
                    ``(C) provides a time frame within which, if any, 
                the airport will be able to accommodate the requests.
            ``(3) Sunset provision.--This subsection shall cease to be 
        effective beginning October 1, 2008.''.

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

    (a) Beyond-Perimeter Exemptions.--Section 41718(a) is amended by 
striking ``12'' and inserting ``24''.
    (b) Within-Perimeter Exemptions.--Section 41718(b) is amended--
            (1) by striking ``12'' and inserting ``20''; and
            (2) by striking ``that were designated as medium hub or 
        smaller airports''.

    (c) Limitations.--
            (1) General exemptions.--Section 41718(c)(2) is amended by 
        striking ``two'' and inserting ``3''.
            (2) Allocation of within-perimeter exemptions.--Section 
        41718(c)(3) is amended--
                    (A) in subparagraph (A)--
                          (i) by striking ``four'' and inserting 
                      ``without regard to the criteria contained in 
                      subsection (b)(1), six''; and
                          (ii) by striking ``and'' at the end;
                    (B) in subparagraph (B)--
                          (i) by striking ``eight'' and inserting 
                      ``ten''; and
                          (ii) by striking the period at the end and 
                      inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(C) four shall be for air transportation to 
                airports without regard to their size.''.

    (d) Application Procedures.--Section 41718(d) is amended to read as 
follows:
    ``(d) Application Procedures.--The <<NOTE: Deadline.>> Secretary 
shall establish procedures to ensure that all requests for exemptions 
under this section are granted or denied within 90 days after the date 
on which the request is made.''.

SEC. 426. DEFINITION OF COMMUTER AIRCRAFT.

    (a) In General.--Section 41718 is amended by adding at the end the 
following:
    ``(f) Commuters Defined.--For purposes of aircraft operations at 
Ronald Reagan Washington National Airport under subpart K

[[Page 117 STAT. 2556]]

of part 93 of title 14, Code of Federal Regulations, the term 
`commuters' means aircraft operations using aircraft having a 
certificated maximum seating capacity of 76 or less.''.
    (b) Regulations.--The <<NOTE: 49 USC 41718 note.>> Administrator of 
the Federal Aviation Administration shall revise regulations to take 
into account the amendment made by subsection (a).

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

    (a) Findings.--Congress finds that--
            (1) the Armed Forces is comprised of approximately 1,400,000 
        members who are stationed on active duty at more than 6,000 
        military bases in 146 different countries;
            (2) the United States is indebted to the members of the 
        Armed Forces, many of whom are in grave danger due to their 
        engagement in, or exposure to, combat;
            (3) military service, especially in the current war against 
        terrorism, often requires members of the Armed Forces to be 
        separated from their families on short notice, for long periods 
        of time, and under very stressful conditions;
            (4) the unique demands of military service often preclude 
        members of the Armed Forces from purchasing discounted advance 
        airline tickets in order to visit their loved ones at home; and
            (5) it is the patriotic duty of the people of the United 
        States to support the members of the Armed Forces who are 
        defending the Nation's interests around the world at great 
        personal sacrifice.

    (b) Sense of Congress.--It is the sense of Congress that each United 
States air carrier should--
            (1) establish for all members of the Armed Forces on active 
        duty reduced air fares that are comparable to the lowest airfare 
        for ticketed flights; and
            (2) offer flexible terms that allow members of the Armed 
        Forces on active duty to purchase, modify, or cancel tickets 
        without time restrictions, fees, and penalties.

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

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

                        TITLE V--AVIATION SAFETY

SEC. 501. COUNTERFEIT OR FRAUDULENTLY REPRESENTED PARTS VIOLATIONS.

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

[[Page 117 STAT. 2557]]

SEC. 502. RUNWAY SAFETY STANDARDS.

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

``Sec. 44727. Runway safety areas

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

    (b) Conforming Amendment.--The analysis for chapter 447 is amended 
by adding at the end the following:

``44727. Runway safety areas.''.

SEC. 503. CIVIL PENALTIES.

    (a) Increase in Maximum Civil Penalty.--Section 46301(a) is 
amended--
            (1) by striking ``$1,000'' in paragraph (1) and inserting 
        ``$25,000 (or $1,100 if the person is an individual or small 
        business concern)'';
            (2) by striking ``or'' the last place it appears in 
        paragraph (1)(A);
            (3) by striking ``section)'' in paragraph (1)(A) and 
        inserting ``section), or section 47133'';
            (4) by striking paragraphs (2), (3), (6), and (7) and 
        redesignating paragraphs (4), (5), and (8) as paragraphs (2), 
        (3), and (4), respectively;
            (5) by striking ``41715'' each place it appears in paragraph 
        (2), as redesignated, and inserting ``41719'';
            (6) by striking ``paragraphs (1) and (2)'' in paragraph (4), 
        as redesignated, and inserting ``paragraph (1)''; and
            (7) by adding at the end the following:
            ``(5) Penalties applicable to individuals and small business 
        concerns.--
                    ``(A) An individual (except an airman serving as an 
                airman) or small business concern is liable to the 
                Government for a civil penalty of not more than $10,000 
                for violating--
                          ``(i) chapter 401 (except sections 40103(a) 
                      and (d), 40105, 40106(b), 40116, and 40117), 
                      section 44502 (b) or (c), chapter 447 (except 
                      sections 44717-44723), or

[[Page 117 STAT. 2558]]

                      chapter 449 (except sections 44902, 44903(d), 
                      44904, and 44907-44909) of this title; or
                          ``(ii) a regulation prescribed or order issued 
                      under any provision to which clause (i) applies.
                    ``(B) A civil penalty of not more than $10,000 may 
                be imposed for each violation under paragraph (1) 
                committed by an individual or small business concern 
                related to--
                          ``(i) the transportation of hazardous 
                      material;
                          ``(ii) the registration or recordation under 
                      chapter 441 of an aircraft not used to provide air 
                      transportation;
                          ``(iii) a violation of section 44718(d), 
                      relating to the limitation on construction or 
                      establishment of landfills;
                          ``(iv) a violation of section 44725, relating 
                      to the safe disposal of life-limited aircraft 
                      parts; or
                          ``(v) a violation of section 40127 or section 
                      41705, relating to discrimination.
                    ``(C) Notwithstanding paragraph (1), the maximum 
                civil penalty for a violation of section 41719 committed 
                by an individual or small business concern shall be 
                $5,000 instead of $1,000.
                    ``(D) Notwithstanding paragraph (1), the maximum 
                civil penalty for a violation of section 41712 
                (including a regulation prescribed or order issued under 
                such section) or any other regulation prescribed by the 
                Secretary by an individual or small business concern 
                that is intended to afford consumer protection to 
                commercial air transportation passengers shall be $2,500 
                for each violation.''.

    (b) Increase in Limit on Administrative Authority and Civil 
Penalty.--Section 46301(d) is amended--
            (1) by striking ``more than $50,000;'' in paragraph (4)(A) 
        and inserting ``more than--
                          ``(i) $50,000 if the violation was committed 
                      by any person before the date of enactment of the 
                      Vision 100--Century of Aviation Reauthorization 
                      Act;
                          ``(ii) $400,000 if the violation was committed 
                      by a person other than an individual or small 
                      business concern on or after that date; or
                          ``(iii) $50,000 if the violation was committed 
                      by an individual or small business concern on or 
                      after that date;''; and
            (2) by striking ``is $50,000.'' in paragraph (8) and 
        inserting ``is--
                    ``(A) $50,000 if the violation was committed by any 
                person before the date of enactment of the Vision 100--
                Century of Aviation Reauthorization Act;
                    ``(B) $400,000 if the violation was committed by a 
                person other than an individual or small business 
                concern on or after that date; or
                    ``(C) $50,000 if the violation was committed by an 
                individual or small business concern on or after that 
                date.''.

    (c) Small Business Concern Defined.--Section 46301 is amended by 
adding at the end the following:

[[Page 117 STAT. 2559]]

    ``(i) Small Business Concern Defined.--In this section, the term 
`small business concern' has the meaning given that term in section 3 of 
the Small Business Act (15 U.S.C. 632).''.
    (d) Conforming Amendments.--Title 49 is amended--
            (1) in section 41705(b) by striking ``46301(a)(3)(E)'' and 
        inserting ``46301''; and
            (2) in section 46304(a) by striking ``, (2), or (3)''.

SEC. 504. <<NOTE: 49 USC 44515 note.>> IMPROVEMENT OF CURRICULUM 
            STANDARDS FOR AVIATION MAINTENANCE TECHNICIANS.

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

    (e) Periodic Reviews and Updates.--The Administrator shall review 
the content of the curriculum standards for training airframe and 
powerplant mechanics referred to in subsection (a) every 3 years after 
completion of the revised and updated training standards required under 
subsection (a) as necessary to reflect current technology and 
maintenance practices.

SEC. 505. <<NOTE: 49 USC 44505 note.>> ASSESSMENT OF WAKE TURBULENCE 
            RESEARCH AND DEVELOPMENT PROGRAM.

    (a) Assessment.--The <<NOTE: Contracts.>> Administrator of the 
Federal Aviation Administration shall enter into an arrangement with the 
National Research Council for an assessment of the Federal Aviation 
Administration's proposed wake turbulence research and development 
program. The assessment shall include--
            (1) an evaluation of the research and development goals and 
        objectives of the program;
            (2) a listing of any additional research and development 
        objectives that should be included in the program;
            (3) any modifications that will be necessary for the program 
        to achieve the program's goals and objectives on schedule and 
        within the proposed level of resources; and
            (4) an evaluation of the roles, if any, that should be 
        played by other Federal agencies, such as the National 
        Aeronautics and Space Administration and the National Oceanic 
        and Atmospheric Administration, in wake turbulence research and 
        development, and how those efforts could be coordinated.

    (b) Report.--A <<NOTE: Deadline.>> report containing the results of 
the assessment shall be provided to the Committee on Science of the 
House of Representatives and to the Committee on Commerce, Science, and

[[Page 117 STAT. 2560]]

Transportation of the Senate not later than 1 year after the date of 
enactment of this Act.

    (c) Authorization of Appropriations.--There is authorized to be 
appropriated to the Administrator of the Federal Aviation Administration 
$500,000 for fiscal year 2004 to carry out this section.

SEC. 506. <<NOTE: 49 USC 44701 note.>> FAA INSPECTOR TRAINING.

    (a) Study.--
            (1) In general.--The Comptroller General shall conduct a 
        study of the training of the aviation safety inspectors of the 
        Federal Aviation Administration (in this section referred to as 
        ``FAA inspectors'').
            (2) Contents.--The study shall include--
                    (A) an analysis of the type of training provided to 
                FAA inspectors;
                    (B) actions that the Federal Aviation Administration 
                has undertaken to ensure that FAA inspectors receive up-
                to-date training on the latest technologies;
                    (C) the extent of FAA inspector training provided by 
                the aviation industry and whether such training is 
                provided without charge or on a quid pro quo basis; and
                    (D) the amount of travel that is required of FAA 
                inspectors in receiving training.
            (3) Report.--Not <<NOTE: Deadline.>> later than 1 year after 
        the date of enactment of this Act, the Comptroller General shall 
        transmit to the Committee on Transportation and Infrastructure 
        of the House of Representatives and the Committee on Commerce, 
        Science, and Transportation of the Senate a report on the 
        results of the study.

    (b) Sense of the House.--It is the sense of the House of 
Representatives that--
            (1) FAA inspectors should be encouraged to take the most up-
        to-date initial and recurrent training on the latest aviation 
        technologies;
            (2) FAA inspector training should have a direct relation to 
        an individual's job requirements; and
            (3) if possible, a FAA inspector should be allowed to take 
        training at the location most convenient for the inspector.

    (c) Workload <<NOTE: Deadlines.>> of Inspectors.--
            (1) Study by national academy of sciences.--Not later than 
        90 days after the date of enactment of this Act, the 
        Administrator of the Federal Aviation Administration shall make 
        appropriate arrangements for the National Academy of Sciences to 
        conduct a study of the assumptions and methods used by the 
        Federal Aviation Administration to estimate staffing standards 
        for FAA inspectors to ensure proper oversight over the aviation 
        industry, including the designee program.
            (2) Contents.--The study shall include the following:
                    (A) A suggested method of modifying FAA inspectors 
                staffing models for application to current local 
                conditions or applying some other approach to developing 
                an objective staffing standard.
                    (B) The approximate cost and length of time for 
                developing such models.
            (3) Report.--Not later than 12 months after the initiation 
        of the arrangements under subsection (a), the National

[[Page 117 STAT. 2561]]

        Academy of Sciences shall transmit to Congress a report on the 
        results of the study.

SEC. 507. AIR TRANSPORTATION OVERSIGHT SYSTEM PLAN.

    (a) In General.--Within <<NOTE: Deadline.>> 90 days after the date 
of enactment of this Act, the Administrator of the Federal Aviation 
Administration shall transmit to the Senate Committee on Commerce, 
Science, and Transportation and the House of Representatives Committee 
on Transportation and Infrastructure a plan containing an implementation 
schedule for addressing problems with the air transportation oversight 
system that have been identified in reports by the Comptroller General 
and the Inspector General of the Department of Transportation.

    (b) Plan Requirements.--The plan transmitted by the Administrator 
under subsection (a) shall set forth the action the Administration will 
take under the plan--
            (1) to develop specific, clear, and meaningful inspection 
        guidance for the use by Administration aviation safety 
        inspectors and analysts;
            (2) to provide adequate training to Administration aviation 
        safety inspectors in system safety concepts, risk analysis, and 
        auditing;
            (3) to ensure that aviation safety inspectors with the 
        necessary qualifications and experience are physically located 
        where they can satisfy the most important needs;
            (4) to establish strong national leadership for the air 
        transportation oversight system and to ensure that the system is 
        implemented consistently across Administration field offices; 
        and
            (5) to extend the air transportation oversight system beyond 
        the 10 largest air carriers, so it governs oversight of smaller 
        air carriers as well.

                       TITLE VI--AVIATION SECURITY

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

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

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

    ``(a) Orders.--The Administrator of Federal Aviation Administration 
shall issue an order amending, modifying, suspending, or revoking any 
part of a certificate issued under this title if the Administrator is 
notified by the Under Secretary for Border and Transportation Security 
of the Department of Homeland Security that the holder of the 
certificate poses, or is suspected of posing, a risk of air piracy or 
terrorism or a threat to airline or passenger safety. If requested by 
the Under Secretary, the order shall be effective immediately.
    ``(b) Hearings for Citizens.--An individual who is a citizen of the 
United States who is adversely affected by an order of the Administrator 
under subsection (a) is entitled to a hearing on the record.
    ``(c) Hearings.--When conducting a hearing under this section, the 
administrative law judge shall not be bound by findings of

[[Page 117 STAT. 2562]]

fact or interpretations of laws and regulations of the Administrator or 
the Under Secretary.
    ``(d) Appeals.--An appeal from a decision of an administrative law 
judge as the result of a hearing under subsection (b) shall be made to 
the Transportation Security Oversight Board established by section 
115. <<NOTE: Establishment.>> The Board shall establish a panel to 
review the decision. The members of this panel (1) shall not be 
employees of the Transportation Security Administration, (2) shall have 
the level of security clearance needed to review the determination made 
under this section, and (3) shall be given access to all relevant 
documents that support that determination. The panel may affirm, modify, 
or reverse the decision.

    ``(e) Review.--A person substantially affected by an action of a 
panel under subsection (d), or the Under Secretary when the Under 
Secretary decides that the action of the panel under this section will 
have a significant adverse impact on carrying out this part, may obtain 
review of the order under section 46110. The Under Secretary and the 
Administrator shall be made a party to the review proceedings. Findings 
of fact of the panel are conclusive if supported by substantial 
evidence.
    ``(f) Explanation of Decisions.--An individual who commences an 
appeal under this section shall receive a written explanation of the 
basis for the determination or decision and all relevant documents that 
support that determination to the maximum extent that the national 
security interests of the United States and other applicable laws 
permit.
    ``(g) Classified Evidence.--
            ``(1) In general.--
        The <<NOTE: Regulations. Procedures.>> Under Secretary, in 
        consultation with the Administrator and the Director of Central 
        Intelligence, shall issue regulations to establish procedures by 
        which the Under Secretary, as part of a hearing conducted under 
        this section, may provide an unclassified summary of classified 
        evidence upon which the order of the Administrator was based to 
        the individual adversely affected by the order.
            ``(2) Review of classified evidence by administrative law 
        judge.--
                    ``(A) Review.--As part of a hearing conducted under 
                this section, if the order of the Administrator issued 
                under subsection (a) is based on classified information 
                (as defined in section 1(a) of the Classified 
                Information Procedures Act (18 U.S.C. App.), such 
                information may be submitted by the Under Secretary to 
                the reviewing administrative law judge, pursuant to 
                appropriate security procedures, and shall be reviewed 
                by the administrative law judge ex parte and in camera.
                    ``(B) Security clearances.--Pursuant to existing 
                procedures and requirements, the Under Secretary shall, 
                in coordination, as necessary, with the heads of other 
                affected departments or agencies, ensure that 
                administrative law judges reviewing orders of the 
                Administrator under this section possess security 
                clearances appropriate for their work under this 
                section.
            ``(3) Unclassified summaries of classified evidence.--As 
        part of a hearing conducted under this section and upon the 
        request of the individual adversely affected by an order of the 
        Administrator under subsection (a), the Under Secretary shall 
        provide to the individual and reviewing administrative

[[Page 117 STAT. 2563]]

        law judge, consistent with the procedures established under 
        paragraph (1), an unclassified summary of any classified 
        information upon which the order of the Administrator is 
        based.''.

    (b) Conforming Amendment.--The analysis for chapter 461 is amended 
by adding at the end the following:

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

SEC. 602. <<NOTE: Deadlines. Reports.>> JUSTIFICATION FOR AIR DEFENSE 
            IDENTIFICATION ZONE.

    (a) In General.--If the Administrator of the Federal Aviation 
Administration establishes an Air Defense Identification Zone (in this 
section referred as an ``ADIZ''), the Administrator shall transmit to 
the Committee on Transportation and Infrastructure of the House of 
Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate, not later than 60 days after the date of 
establishing the ADIZ, a report containing an explanation of the need 
for the ADIZ. The Administrator also shall transmit to the Committees 
updates of the report every 60 days until the ADIZ is 
rescinded. <<NOTE: Classified information.>> The reports and updates 
shall be transmitted in classified form.

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

SEC. 603. CREW TRAINING.

    Section 44918 is amended to read as follows:

``Sec. 44918. Crew training

    ``(a) Basic Security Training.--
            ``(1) In general.--Each air carrier providing scheduled 
        passenger air transportation shall carry out a training program 
        for flight and cabin crew members to prepare the crew members 
        for potential threat conditions.
            ``(2) Program elements.--An air carrier training program 
        under this subsection shall include, at a minimum, elements that 
        address each of the following:
                    ``(A) Recognizing suspicious activities and 
                determining the seriousness of any occurrence.
                    ``(B) Crew communication and coordination.
                    ``(C) The proper commands to give passengers and 
                attackers.
                    ``(D) Appropriate responses to defend oneself.

[[Page 117 STAT. 2564]]

                    ``(E) Use of protective devices assigned to crew 
                members (to the extent such devices are required by the 
                Administrator of the Federal Aviation Administration or 
                the Under Secretary for Border and Transportation 
                Security of the Department of Homeland Security).
                    ``(F) Psychology of terrorists to cope with hijacker 
                behavior and passenger responses.
                    ``(G) Situational training exercises regarding 
                various threat conditions.
                    ``(H) Flight deck procedures or aircraft maneuvers 
                to defend the aircraft and cabin crew responses to such 
                procedures and maneuvers.
                    ``(I) The proper conduct of a cabin search, 
                including explosive device recognition.
                    ``(J) Any other subject matter considered 
                appropriate by the Under Secretary.
            ``(3) Approval.--An air carrier training program under this 
        subsection shall be subject to approval by the Under Secretary.
            ``(4) Minimum standards.--Not <<NOTE: Deadline.>> later than 
        one year after the date of enactment of the Vision 100--Century 
        of Aviation Reauthorization Act, the Under Secretary may 
        establish minimum standards for the training provided under this 
        subsection and for recurrent training.
            ``(5) Existing programs.--Notwithstanding paragraphs (3) and 
        (4), any training program of an air carrier to prepare flight 
        and cabin crew members for potential threat conditions that was 
        approved by the Administrator or the Under Secretary before the 
        date of enactment of the Vision 100--Century of Aviation 
        Reauthorization Act may continue in effect until disapproved or 
        ordered modified by the Under Secretary.
            ``(6) Monitoring.--The Under Secretary, in consultation with 
        the Administrator, shall monitor air carrier training programs 
        under this subsection and periodically shall review an air 
        carrier's training program to ensure that the program is 
        adequately preparing crew members for potential threat 
        conditions. In determining when an air carrier's training 
        program should be reviewed under this paragraph, the Under 
        Secretary shall consider complaints from crew members. The Under 
        Secretary shall ensure that employees responsible for monitoring 
        the training programs have the necessary resources and 
        knowledge.
            ``(7) Updates.--The Under Secretary, in consultation with 
        the Administrator, shall order air carriers to modify training 
        programs under this subsection to reflect new or different 
        security threats.

    ``(b) Advanced Self-Defense Training.--
            ``(1) In general.--Not <<NOTE: Deadline.>> later than one 
        year after the date of enactment of the Vision 100--Century of 
        Aviation Reauthorization Act, the Under Secretary shall develop 
        and provide a voluntary training program for flight and cabin 
        crew members of air carriers providing scheduled passenger air 
        transportation.
            ``(2) Program elements.--The training program under this 
        subsection shall include both classroom and effective hands-on 
        training in the following elements of self-defense:
                    ``(A) Deterring a passenger who might present a 
                threat.

[[Page 117 STAT. 2565]]

                    ``(B) Advanced control, striking, and restraint 
                techniques.
                    ``(C) Training to defend oneself against edged or 
                contact weapons.
                    ``(D) Methods to subdue and restrain an attacker.
                    ``(E) Use of available items aboard the aircraft for 
                self-defense.
                    ``(F) Appropriate and effective responses to defend 
                oneself, including the use of force against an attacker.
                    ``(G) Any other element of training that the Under 
                Secretary considers appropriate.
            ``(3) Participation not required.--A crew member shall not 
        be required to participate in the training program under this 
        subsection.
            ``(4) Compensation.--Neither the Federal Government nor an 
        air carrier shall be required to compensate a crew member for 
        participating in the training program under this subsection.
            ``(5) Fees.--A crew member shall not be required to pay a 
        fee for the training program under this subsection.
            ``(6) Consultation.--In developing the training program 
        under this subsection, the Under Secretary shall consult with 
        law enforcement personnel and security experts who have 
        expertise in self-defense training, terrorism experts, 
        representatives of air carriers, the director of self-defense 
        training in the Federal Air Marshals Service, flight attendants, 
        labor organizations representing flight attendants, and 
        educational institutions offering law enforcement training 
        programs.
            ``(7) Designation of tsa official.--The Under Secretary 
        shall designate an official in the Transportation Security 
        Administration to be responsible for implementing the training 
        program under this subsection. The official shall consult with 
        air carriers and labor organizations representing crew members 
        before implementing the program to ensure that it is appropriate 
        for situations that may arise on board an aircraft during a 
        flight.

    ``(c) Limitation.--Actions by crew members under this section shall 
be subject to the provisions of section 44903(k).''.

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

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

[[Page 117 STAT. 2566]]

required under section 44938(a) of title 49, United States Code, that is 
due March 31, 2004.

SEC. 605. AIRPORT SECURITY IMPROVEMENT PROJECTS.

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

``Sec. 44923. Airport security improvement projects

    ``(a) Grant Authority.--Subject to the requirements of this section, 
the Under Secretary for Border and Transportation Security of the 
Department of Homeland Security may make grants to airport sponsors--
            ``(1) for projects to replace baggage conveyer systems 
        related to aviation security;
            ``(2) for projects to reconfigure terminal baggage areas as 
        needed to install explosive detection systems;
            ``(3) for projects to enable the Under Secretary to deploy 
        explosive detection systems behind the ticket counter, in the 
        baggage sorting area, or in line with the baggage handling 
        system; and
            ``(4) for other airport security capital improvement 
        projects.

    ``(b) Applications.--A sponsor seeking a grant under this section 
shall submit to the Under Secretary an application in such form and 
containing such information as the Under Secretary prescribes.
    ``(c) Approval.--The Under Secretary, after consultation with the 
Secretary of Transportation, may approve an application of a sponsor for 
a grant under this section only if the Under Secretary determines that 
the project will improve security at an airport or improve the 
efficiency of the airport without lessening security.
    ``(d) Letters of Intent.--
            ``(1) Issuance.--The Under Secretary may issue a letter of 
        intent to a sponsor committing to obligate from future budget 
        authority an amount, not more than the Federal Government's 
        share of the project's cost, for an airport security improvement 
        project (including interest costs and costs of formulating the 
        project).
            ``(2) Schedule.--A letter of intent under this subsection 
        shall establish a schedule under which the Under Secretary will 
        reimburse the sponsor for the Government's share of the 
        project's costs, as amounts become available, if the sponsor, 
        after the Under Secretary issues the letter, carries out the 
        project without receiving amounts under this section.
            ``(3) Notice to under secretary.--A sponsor that has been 
        issued a letter of intent under this subsection shall notify the 
        Under Secretary of the sponsor's intent to carry out a project 
        before the project begins.
            ``(4) Notice to congress.--The <<NOTE: Deadline.>> Under 
        Secretary shall transmit to the Committees on Appropriations and 
        Transportation and Infrastructure of the House of 
        Representatives and the Committees on Appropriations and 
        Commerce, Science and Transportation of the Senate a written 
        notification at least 3 days before the issuance of a letter of 
        intent under this section.
            ``(5) Limitations.--A letter of intent issued under this 
        subsection is not an obligation of the Government under section

[[Page 117 STAT. 2567]]

        1501 of title 31, and the letter is not deemed to be an 
        administrative commitment for financing. An obligation or 
        administrative commitment may be made only as amounts are 
        provided in authorization and appropriations laws.
            ``(6) Statutory construction.--Nothing in this subsection 
        shall be construed to prohibit the obligation of amounts 
        pursuant to a letter of intent under this subsection in the same 
        fiscal year as the letter of intent is issued.

    ``(e) Federal Share.--
            ``(1) In general.--The Government's share of the cost of a 
        project under this section shall be 90 percent for a project at 
        a medium or large hub airport and 95 percent for a project at 
        any other airport.
            ``(2) Existing letters of intent.--The Under Secretary shall 
        revise letters of intent issued before the date of enactment of 
        this section to reflect the cost share established in this 
        subsection with respect to grants made after September 30, 2003.

    ``(f) Sponsor Defined.--In this section, the term `sponsor' has the 
meaning given that term in section 47102.
    ``(g) Applicability of Certain Requirements.--The requirements that 
apply to grants and letters of intent issued under chapter 471 (other 
than section 47102(3)) shall apply to grants and letters of intent 
issued under this section.
    ``(h) Aviation Security Capital Fund.--
            ``(1) In general.--There is established within the 
        Department of Homeland Security a fund to be known as the 
        Aviation Security Capital Fund. The first $250,000,000 derived 
        from fees received under section 44940(a)(1) in each of fiscal 
        years 2004 through 2007 shall be available to be deposited in 
        the Fund. The Under Secretary shall impose the fee authorized by 
        section 44940(a)(1) so as to collect at least $250,000,000 in 
        each of such fiscal years for deposit into the Fund. Amounts in 
        the Fund shall be available to the Under Secretary to make 
        grants under this section.
            ``(2) Allocations.--Of the amount made available under 
        paragraph (1) for a fiscal year, $125,000,000 shall be allocated 
        in such a manner that--
                    ``(A) 40 percent shall be made available for large 
                hub airports;
                    ``(B) 20 percent shall be made available for medium 
                hub airports;
                    ``(C) 15 percent shall be made available for small 
                hub airports and nonhub airports; and
                    ``(D) 25 percent shall be distributed by the 
                Secretary to any airport on the basis of aviation 
                security risks.
            ``(3) Discretionary grants.--Of the amount made available 
        under paragraph (1) for a fiscal year, $125,000,000 shall be 
        used to make discretionary grants, with priority given to 
        fulfilling intentions to obligate under letters of intent issued 
        under subsection (d).

    ``(i) Authorization of Appropriations.--
            ``(1) In general.--In addition to amounts made available 
        under subsection (h), there is authorized to be appropriated to 
        carry out this section $250,000,000 for each of fiscal years 
        2004 through 2007. Such sums shall remain available until 
        expended.

[[Page 117 STAT. 2568]]

            ``(2) Allocations.--50 percent of amounts appropriated 
        pursuant to this subsection for a fiscal year shall be used for 
        making allocations under subsection (h)(2) and 50 percent of 
        such amounts shall be used for making discretionary grants under 
        subsection (h)(3).''.

    (b) Conforming Amendments.--
            (1) Use of passenger fee funds.--Section 44940(a)(1) is 
        amended by inserting after subparagraph (G) the following:
                    ``(H) The costs of security-related capital 
                improvements at airports.
                    ``(I) The costs of training pilots and flight 
                attendants under sections 44918 and 44921.''.
            (2) Limitation on collection.--Section 44940(d)(4) is 
        amended by striking ``Act.'' and inserting ``Act or in section 
        44923.''.
            (3) Chapter analysis.--The analysis for subchapter I of 
        chapter 449 is amended by adding at the end the following:

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

SEC. 606. CHARTER SECURITY.

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

SEC. 607. <<NOTE: 49 USC 44903 note.>> CAPPS2.

    (a) In General.--The <<NOTE: Certification.>> Under Secretary for 
Border and Transportation Security of the Department of Homeland 
Security shall not implement, on other than a test basis, the computer 
assisted passenger prescreening system (commonly known as and in this 
section referred to as ``CAPPS2'') until the Under Secretary provides to 
Congress a certification that--
            (1) a procedure is established enabling airline passengers, 
        who are delayed or prohibited from boarding a flight because 
        CAPPS2 determined that they might pose a security threat,

[[Page 117 STAT. 2569]]

        to appeal such determination and correct information contained 
        in CAPPS2;
            (2) the error rate of the Government and private data bases 
        that will be used to both establish identity and assign a risk 
        level to a passenger under CAPPS2 will not produce a large 
        number of false positives that will result in a significant 
        number of passengers being mistaken as a security threat;
            (3) the Under Secretary has demonstrated the efficacy and 
        accuracy of all search tools in CAPPS2 and has demonstrated that 
        CAPPS2 can make an accurate predictive assessment of those 
        passengers who would constitute a security threat;
            (4) the Secretary of Homeland Security has established an 
        internal oversight board to oversee and monitor the manner in 
        which CAPPS2 is being implemented;
            (5) the Under Secretary has built in sufficient operational 
        safeguards to reduce the opportunities for abuse;
            (6) substantial security measures are in place to protect 
        CAPPS2 from -unauthorized access by hackers or other intruders;
            (7) the Under Secretary has adopted policies establishing 
        effective oversight of the use and operation of the system; and
            (8) there are no specific privacy concerns with the 
        technological architecture of the system.

    (b) GAO Report.--Not <<NOTE: Deadline.>> later than 90 days after 
the date on which certification is provided under subsection (a), the 
Comptroller General shall submit a report to the Committees on 
Appropriations of the House of Representatives and the Senate, the 
Committee on Transportation and Infrastructure of the House of 
Representatives, and the Committee on Commerce, Science and 
Transportation of the Senate that assesses the impact of CAPPS2 on the 
issues listed in subsection (a) and on privacy and civil liberties. The 
report shall include any recommendations for practices, procedures, 
regulations, or legislation to eliminate or minimize adverse effect of 
CAPPS2 on privacy, discrimination, and other civil liberties.

SEC. 608. REPORT ON PASSENGER PRESCREENING PROGRAM.

    (a) In General.--Within 90 days after the date 
of <<NOTE: Deadline.>> enactment of this Act, the Secretary of Homeland 
Security, after consultation with the Attorney General, shall submit a 
report in writing to the Senate Committee on Commerce, Science, and 
Transportation and the House of Representatives Committee on 
Transportation and Infrastructure on the potential impact of the 
Transportation Security Administration's proposed Computer Assisted 
Passenger Prescreening system, commonly known as CAPPS2, on the privacy 
and civil liberties of United States citizens.

    (b) Specific Issues To Be Addressed.--The report shall address the 
following:
            (1) Whether and for what period of time data gathered on 
        individual travelers will be retained, who will have access to 
        such data, and who will make decisions concerning access to such 
        data.
            (2) How the Transportation Security Administration will 
        treat the scores assigned to individual travelers to measure the 
        likelihood they may pose a security threat, including how long 
        such scores will be retained and whether and under what

[[Page 117 STAT. 2570]]

        circumstances they may be shared with other governmental, 
        nongovernmental, or commercial entities.
            (3) The role airlines and outside vendors or contractors 
        will have in implementing and operating the system, and to what 
        extent will they have access, or the means to obtain access, to 
        data, scores, or other information generated by the system.
            (4) The safeguards that will be implemented to ensure that 
        data, scores, or other information generated by the system will 
        be used only as officially intended.
            (5) The procedures that will be implemented to mitigate the 
        effect of any errors, and what procedural recourse will be 
        available to passengers who believe the system has wrongly 
        barred them from taking flights.
            (6) The oversight procedures that will be implemented to 
        ensure that, on an ongoing basis, privacy and civil liberties 
        issues will continue to be considered and addressed with high 
        priority as the system is installed, operated, and updated.

SEC. 609. ARMING CARGO PILOTS AGAINST TERRORISM.

    (a) Sense of Congress.--It is the sense of Congress that members of 
a flight deck crew of a cargo aircraft should be armed with a firearm or 
taser to defend the cargo aircraft against an attack by terrorists that 
could result in the use of the aircraft as a weapon of mass destruction 
or for other terrorist purposes.
    (b) Arming Cargo Pilots Against Terrorism.--Section 44921 is 
amended--
            (1) in subsection (a) by striking ``passenger'' each place 
        that it appears;
            (2) in subsection (k)(2) by striking ``or,'' and all that 
        follows before the period at the end and inserting ``or any 
        other flight deck crew member''; and
            (3) by adding at the end of subsection (k) the following:
            ``(3) All-cargo air transportation.--In this section, the 
        term `air transportation' includes all-cargo air 
        transportation.''.

    (c) Time for Implementation.--In <<NOTE: 49 USC 44921 
note.>> carrying out the amendments made by subsection (d), the Under 
Secretary for Border and Transportation Security of the Department of 
Homeland Security shall ensure that passenger and cargo pilots are 
treated equitably in receiving access to training as Federal flight deck 
officers.

    (d) Effect on Other Laws.--The <<NOTE: 49 USC 44921 
note.>> requirements of subsection (e) shall have no effect on the 
deadlines for implementation contained in section 44921 of title 49, 
United States Code, as in effect on the day before the date of enactment 
of this Act.

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

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

SEC. 611. FOREIGN REPAIR STATIONS.

    (a) Oversight Plan.--Within <<NOTE: Deadline.>> 90 days after the 
date of enactment of this Act, the Administrator of the Federal Aviation 
Administration shall transmit to the Senate Committee on Commerce, 
Science, and Transportation and the House of Representatives Committee 
on Transportation and Infrastructure a plan containing an

[[Page 117 STAT. 2571]]

implementation schedule to strengthen oversight of domestic and foreign 
repair stations and ensure that foreign repair stations that are 
certified by the Administrator under part 145 of title 14, Code of 
Federal Regulations, are subject to an equivalent level of safety, 
oversight, and quality control as those located in the United States.

    (b) Repair Station Security.--
            (1) In general.--Subchapter I of chapter 449 is further 
        amended by adding at the end the following:

``Sec. 44924. Repair station security

    ``(a) Security Review and Audit.--To ensure the security of 
maintenance and repair work conducted on air carrier aircraft and 
components at foreign repair stations, the Under Secretary for Border 
and Transportation Security of the Department of Homeland Security, in 
consultation with the Administrator of the Federal Aviation 
Administration, shall complete a security review and audit of foreign 
repair stations that are certified by the Administrator under part 145 
of title 14, Code of Federal Regulations, and that work on air carrier 
aircraft and components. <<NOTE: Deadline.>> The review shall be 
completed not later than 18 months after the date on which the Under 
Secretary issues regulations under subsection (f).

    ``(b) Addressing Security Concerns.--
The <<NOTE: Deadline. Notification.>> Under Secretary shall require a 
foreign repair station to address the security issues and 
vulnerabilities identified in a security audit conducted under 
subsection (a) within 90 days of providing notice to the repair station 
of the security issues and vulnerabilities so identified and shall 
notify the Administrator that a deficiency was identified in the 
security audit.

    ``(c) Suspensions and Revocations of Certificates.--
            ``(1) Failure <<NOTE: Notification.>> to carry out effective 
        security measures.--If, after the 90th day on which a notice is 
        provided to a foreign repair station under subsection (b), the 
        Under Secretary determines that the foreign repair station does 
        not maintain and carry out effective security measures, the 
        Under Secretary shall notify the Administrator of the 
        determination. Upon receipt of the determination, the 
        Administrator shall suspend the certification of the repair 
        station until such time as the Under Secretary determines that 
        the repair station maintains and carries out effective security 
        measures and transmits the determination to the Administrator.
            ``(2) Immediate security risk.--If the Under Secretary 
        determines that a foreign repair station poses an immediate 
        security risk, the Under Secretary shall notify the 
        Administrator of the determination. Upon receipt of the 
        determination, the Administrator shall revoke the certification 
        of the repair station.
            ``(3) Procedures for appeals.--The Under Secretary, in 
        consultation with the Administrator, shall establish procedures 
        for appealing a revocation of a certificate under this 
        subsection.

    ``(d) Failure To Meet Audit Deadline.--If the security audits 
required by subsection (a) are not completed on or before the date that 
is 18 months after the date on which the Under Secretary issues 
regulations under subsection (f), the Administrator shall be barred from 
certifying any foreign repair station until such audits are completed 
for existing stations.
    ``(e) Priority for Audits.--In conducting the audits described in 
subsection (a), the Under Secretary and the Administrator shall

[[Page 117 STAT. 2572]]

give priority to foreign repair stations located in countries identified 
by the Government as posing the most significant security risks.
    ``(f) Regulations.--Not <<NOTE: Deadline.>> later than 240 days 
after the date of enactment of this section, the Under Secretary, in 
consultation with the Administrator, shall issue final regulations to 
ensure the security of foreign and domestic aircraft repair stations.

    ``(g) Report to Congress.--If the Under Secretary does not issue 
final regulations before the deadline specified in subsection (f), the 
Under Secretary shall transmit to the Committee on Transportation and 
Infrastructure of the House of Representatives and the Committee on 
Commerce, Science, and Transportation of the Senate a report containing 
an explanation as to why the deadline was not met and a schedule for 
issuing the final regulations.''.
            (2) Conforming amendment.--The analysis for subchapter I of 
        chapter 449 is further amended by adding at the end the 
        following:

``44924. Repair station security.''.

SEC. 612. FLIGHT TRAINING.

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

``Sec. 44939. Training to operate certain aircraft

    ``(a) Waiting Period.--A person operating as a flight instructor, 
pilot school, or aviation training center or subject to regulation under 
this part may provide training in the operation of any aircraft having a 
maximum certificated takeoff weight of more than 12,500 pounds to an 
alien (as defined in section 101(a)(3) of the Immigration and 
Nationality Act (8 U.S.C. 1101(a)(3))) or to any other individual 
specified by the Secretary of Homeland Security only if--
            ``(1) that person has first notified the Secretary that the 
        alien or individual has requested such training and submitted to 
        the Secretary, in such form as the Secretary may prescribe, the 
        following information about the alien or individual:
                    ``(A) full name, including any aliases used by the 
                applicant or variations in spelling of the applicant's 
                name;
                    ``(B) passport and visa information;
                    ``(C) country of citizenship;
                    ``(D) date of birth;
                    ``(E) dates of training; and
                    ``(F) fingerprints collected by, or under the 
                supervision of, a Federal, State, or local law 
                enforcement agency or by another entity approved by the 
                Federal Bureau of Investigation or the Secretary of 
                Homeland Security, including fingerprints taken by 
                United States Government personnel at a United States 
                embassy or consulate; and
            ``(2) the Secretary has not directed, within 30 days after 
        being notified under paragraph (1), that person not to provide 
        the requested training because the Secretary has determined that 
        the individual presents a risk to aviation or national security.

    ``(b) Interruption of Training.--If <<NOTE: Notification.>> the 
Secretary of Homeland Security, more than 30 days after receiving 
notification under subsection (a) from a person providing training 
described in subsection (a), determines that the individual presents a 
risk to aviation or national security, the Secretary shall immediately 
notify the person

[[Page 117 STAT. 2573]]

providing the training of the determination and that person shall 
immediately terminate the training.

    ``(c) Notification.--A person operating as a flight instructor, 
pilot school, or aviation training center or subject to regulation under 
this part may provide training in the operation of any aircraft having a 
maximum certificated takeoff weight of 12,500 pounds or less to an alien 
(as defined in section 101(a)(3) of the Immigration and Nationality Act 
(8 U.S.C. 1101(a)(3))) or to any other individual specified by the 
Secretary of Homeland Security only if that person has notified the 
Secretary that the individual has requested such training and furnished 
the Secretary with that individual's identification in such form as the 
Secretary may require.
    ``(d) Expedited Processing.--Not <<NOTE: Deadline.>> later than 60 
days after the date of enactment of this section, the Secretary shall 
establish a process to ensure that the waiting period under subsection 
(a) shall not exceed 5 days for an alien (as defined in section 
101(a)(3) of the Immigration and Nationality Act (8 U.S.C. 1101(a)(3))) 
who--
            ``(1) holds an airman's certification of a foreign country 
        that is recognized by an agency of the United States, including 
        a military agency, that permits an individual to operate a 
        multi-engine aircraft that has a certificated takeoff weight of 
        more than 12,500 pounds;
            ``(2) is employed by a foreign air carrier that is certified 
        under part 129 of title 14, Code of Federal Regulations, and 
        that has a security program approved under section 1546 of title 
        49, Code of Federal Regulations;
            ``(3) is an individual that has unescorted access to a 
        secured area of an airport designated under section 
        44936(a)(1)(A)(ii); or
            ``(4) is an individual that is part of a class of 
        individuals that the Secretary has determined that providing 
        aviation training to presents minimal risk to aviation or 
        national security because of the aviation training already 
        possessed by such class of individuals.

    ``(e) Training.--In subsection (a), the term `training' means 
training received from an instructor in an aircraft or aircraft 
simulator and does not include recurrent training, ground training, or 
demonstration flights for marketing purposes.
    ``(f) Nonapplicability to Certain Foreign Military Pilots.--The 
procedures and processes required by subsections (a) through (d) shall 
not apply to a foreign military pilot endorsed by the Department of 
Defense for flight training in the United States and seeking training 
described in subsection (e) in the United States.
    ``(g) Fee.--
            ``(1) In general.--The Secretary of Homeland Security may 
        assess a fee for an investigation under this section, which may 
        not exceed $100 per individual (exclusive of the cost of 
        transmitting fingerprints collected at overseas facilities) 
        during fiscal years 2003 and 2004. For fiscal year 2005 and 
        thereafter, the Secretary may adjust the maximum amount of the 
        fee to reflect the costs of such an investigation.
            ``(2) Offset.--Notwithstanding section 3302 of title 31, any 
        fee collected under this section--
                    ``(A) shall be credited to the account in the 
                Treasury from which the expenses were incurred and shall 
                be available to the Secretary for those expenses; and

[[Page 117 STAT. 2574]]

                    ``(B) shall remain available until expended.

    ``(h) Interagency Cooperation.--The Attorney General, the Director 
of Central Intelligence, and the Administrator of the Federal Aviation 
Administration shall cooperate with the Secretary in implementing this 
section.
    ``(i) Security Awareness Training for Employees.--The Secretary 
shall require flight schools to conduct a security awareness program for 
flight school employees to increase their awareness of suspicious 
circumstances and activities of individuals enrolling in or attending 
flight school.''.
    (b) <<NOTE: 49 USC 44939 note.>> Procedures.--
            (1) In general.--Not <<NOTE: Deadline. Regulations.>> later 
        than 60 days after the date of enactment of this Act, the 
        Secretary of Homeland Security shall promulgate an interim final 
        rule to implement section 44939 of title 49, United States Code, 
        as amended by subsection (a).
            (2) Use of overseas facilities.--In order to implement 
        section 44939 of title 49, United States Code, as amended by 
        subsection (a), United States Embassies and Consulates that 
        possess appropriate fingerprint collection equipment and 
        personnel certified to capture fingerprints shall provide 
        fingerprint services to aliens covered by that section if the 
        Secretary requires fingerprints in the administration of that 
        section, and shall transmit the fingerprints to the Secretary or 
        other agency designated by the Secretary. The Attorney General 
        and the Secretary of State shall cooperate with the Secretary of 
        Homeland Security in carrying out this paragraph.
            (3) Use of united states facilities.--If the Secretary of 
        Homeland Security requires fingerprinting in the administration 
        of section 44939 of title 49, United States Code, the Secretary 
        may designate locations within the United States that will 
        provide fingerprinting services to individuals covered by that 
        section.

    (c) Effective Date.--The <<NOTE: 49 USC 44939 note.>> amendment made 
by subsection (a) takes effect on the effective date of the interim 
final rule required by subsection (b)(1).

    (d) Report.--Not <<NOTE: Deadline. 49 USC 44939 note.>> later than 1 
year after the date of enactment of this Act, the Secretary of Homeland 
Security shall submit to the Senate Committee on Commerce, Science, and 
Transportation and the House of Representatives Committee on 
Transportation and Infrastructure a report on the effectiveness of the 
activities carried out under section 44939 of title 49, United States 
Code, in reducing risks to aviation security and national security.

SEC. 613. <<NOTE: Deadline.>> DEPLOYMENT OF SCREENERS AT KENAI, HOMER, 
            AND VALDEZ, ALASKA.

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

                      TITLE VII--AVIATION RESEARCH

SEC. 701. AUTHORIZATION OF APPROPRIATIONS.

    Section 48102(a) is amended--

[[Page 117 STAT. 2575]]

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

[[Page 117 STAT. 2576]]

                activities related to reducing community exposure to 
                civilian aircraft noise or emissions;
                    ``(E) $7,156,000 for Research Mission Support;
                    ``(F) $10,000,000 for the Airport Cooperation 
                Research Program;
                    ``(G) $1,815,000 for carrying out subsection (h) of 
                this section;
                    ``(H) $42,200,000 for Advanced Technology 
                Development and Prototyping;
                    ``(I) $23,900,000 for Safe Flight 21;
                    ``(J) $100,000,000 for the Center for Advanced 
                Aviation System Development;
                    ``(K) $9,862,000 for Airports Technology-Safety; and
                    ``(L) $7,906,000 for Airports Technology-Efficiency; 
                and
            ``(12) for fiscal year 2007, $356,261,000, including--
                    ``(A) $67,244,000 for Improving Aviation Safety;
                    ``(B) $24,828,000 for Weather Safety Research;
                    ``(C) $28,451,000 for Human Factors and Aeromedical 
                Research;
                    ``(D) $30,586,000 for Environmental Research and 
                Development, of which $20,000,000 shall be for research 
                activities related to reducing community exposure to 
                civilian aircraft noise or emissions;
                    ``(E) $7,242,000 for Research Mission Support;
                    ``(F) $10,000,000 for the Airport Cooperation 
                Research Program;
                    ``(G) $1,837,000 for carrying out subsection (h) of 
                this section;
                    ``(H) $42,706,000 for Advanced Technology 
                Development and Prototyping;
                    ``(I) $24,187,000 for Safe Flight 21;
                    ``(J) $101,200,000 for the Center for Advanced 
                Aviation System Development;
                    ``(K) $9,980,000 for Airports Technology-Safety; and
                    ``(L) $8,000,000 for Airports Technology-
                Efficiency.''.

SEC. 702. <<NOTE: 49 USC 106 note.>> FEDERAL AVIATION ADMINISTRATION 
            SCIENCE AND TECHNOLOGY SCHOLARSHIP PROGRAM.

    (a)(1) The Administrator of the Federal Aviation Administration 
shall establish a Federal Aviation Administration Science and Technology 
Scholarship Program to award scholarships to individuals that is 
designed to recruit and prepare students for careers in the Federal 
Aviation Administration.
    (2) Individuals shall be selected to receive scholarships under this 
section through a competitive process primarily on the basis of academic 
merit, with consideration given to financial need and the goal of 
promoting the participation of individuals identified in section 33 or 
34 of the Science and Engineering Equal Opportunities Act.
    (3) <<NOTE: Contracts.>> To carry out the Program the Administrator 
shall enter into contractual agreements with individuals selected under 
paragraph (2) under which the individuals agree to serve as full-time 
employees of the Federal Aviation Administration, for the period 
described in subsection (f)(1), in positions needed by the Federal 
Aviation Administration and for which the individuals are qualified, in 
exchange for receiving a scholarship.

[[Page 117 STAT. 2577]]

    (b) In order to be eligible to participate in the Program, an 
individual must--
            (1) be enrolled or accepted for enrollment as a full-time 
        student at an institution of higher education, as a junior or 
        senior undergraduate or graduate student, in an academic field 
        or discipline described in the list made available under 
        subsection (d);
            (2) be a United States citizen or permanent resident; and
            (3) at the time of the initial scholarship award, not be an 
        employee (as defined in section 2105 of title 5, United States 
        Code).

    (c) An individual seeking a scholarship under this section shall 
submit an application to the Administrator at such time, in such manner, 
and containing such information, agreements, or assurances as the 
Administrator may require.
    (d) <<NOTE: Public information. Records.>> The Administrator shall 
make publicly available a list of academic programs and fields of study 
for which scholarships under the Program may be utilized and shall 
update the list as necessary.

    (e)(1) The Administrator may provide a scholarship under the Program 
for an academic year if the individual applying for the scholarship has 
submitted to the Administrator, as part of the application required 
under subsection (c), a proposed academic program leading to a degree in 
a program or field of study on the list made available under subsection 
(d).
    (2) An individual may not receive a scholarship under this section 
for more than 4 academic years, unless the Administrator grants a 
waiver.
    (3) <<NOTE: Regulations.>> The dollar amount of a scholarship under 
this section for an academic year shall be determined under regulations 
issued by the Administrator, but shall in no case exceed the cost of 
attendance.

    (4) <<NOTE: Regulations.>> A scholarship provided under this section 
may be expended for tuition, fees, and other authorized expenses as 
established by the Administrator by regulation.

    (5) The Administrator may enter into a contractual agreement with an 
institution of higher education under which the amounts provided for a 
scholarship under this section for tuition, fees, and other authorized 
expenses are paid directly to the institution with respect to which the 
scholarship is provided.
    (f)(1) The period of service for which an individual shall be 
obligated to serve as an employee of the Federal Aviation Administration 
is, except as provided in subsection (h)(2), 24 months for each academic 
year for which a scholarship under this section is provided.
    (2)(A) <<NOTE: Deadline.>> Except as provided in subparagraph (B), 
obligated service under paragraph (1) shall begin not later than 60 days 
after the individual obtains the educational degree for which the 
scholarship was provided.

    (B) The Administrator may defer the obligation of an individual to 
provide a period of service under paragraph (1) if the Administrator 
determines that such a deferral is 
appropriate. <<NOTE: Regulations.>> The Administrator shall prescribe 
the terms and conditions under which a service obligation may be 
deferred through regulation.

    (g)(1) <<NOTE: Regulations.>> Scholarship recipients who fail to 
maintain a high level of academic standing, as defined by the 
Administrator by regulation, who are dismissed from their educational 
institutions for disciplinary reasons, or who voluntarily terminate 
academic training before

[[Page 117 STAT. 2578]]

graduation from the educational program for which the scholarship was 
awarded, shall be in breach of their contractual agreement and, in lieu 
of any service obligation arising under such agreement, shall be liable 
to the United States for repayment within 1 year after the date of 
default of all scholarship funds paid to them and to the institution of 
higher education on their behalf under the agreement, except as provided 
in subsection (h)(2). The repayment period may be extended by the 
Administrator when determined to be necessary, as established by 
regulation.

    (2) Scholarship recipients who, for any reason, fail to begin or 
complete their service obligation after completion of academic training, 
or fail to comply with the terms and conditions of deferment established 
by the Administrator pursuant to subsection (f)(2)(B), shall be in 
breach of their contractual agreement. When recipients breach their 
agreements for the reasons stated in the preceding sentence, the 
recipient shall be liable to the United States for an amount equal to--
            (A) the total amount of scholarships received by such 
        individual under this section; plus
            (B) the interest on the amounts of such awards which would 
        be payable if at the time the awards were received they were 
        loans bearing interest at the maximum legal prevailing rate, as 
        determined by the Treasurer of the United States,

multiplied by 3.
    (h)(1) Any obligation of an individual incurred under the Program 
(or a contractual agreement thereunder) for service or payment shall be 
canceled upon the death of the individual.
    (2) <<NOTE: Regulations.>> The Administrator shall by regulation 
provide for the partial or total waiver or suspension of any obligation 
of service or payment incurred by an individual under the Program (or a 
contractual agreement thereunder) whenever compliance by the individual 
is impossible or would involve extreme hardship to the individual, or if 
enforcement of such obligation with respect to the individual would be 
contrary to the best interests of the Government.

    (i) For purposes of this section--
            (1) the term ``cost of attendance'' has the meaning given 
        that term in section 472 of the Higher Education Act of 1965;
            (2) the term ``institution of higher education'' has the 
        meaning given that term in section 101(a) of the Higher 
        Education Act of 1965; and
            (3) the term ``Program'' means the Federal Aviation 
        Administration Science and Technology Scholarship Program 
        established under this section.

    (j)(1) <<NOTE: Appropriation authorization.>> There is authorized to 
be appropriated to the Federal Aviation Administration for the Program 
$10,000,000 for each fiscal year.

    (2) Amounts appropriated under this section shall remain available 
for 2 fiscal years.
    (k) The Administrator may provide temporary internships to full-time 
students enrolled in an undergraduate or post-graduate program leading 
to an advanced degree in an aerospace-related or aviation safety-related 
field of endeavor.

[[Page 117 STAT. 2579]]

SEC. <<NOTE: 42 USC 2473e.>> 703. NATIONAL AERONAUTICS AND SPACE 
            ADMINISTRATION SCIENCE AND TECHNOLOGY SCHOLARSHIP PROGRAM.

    (a)(1) The Administrator of the National Aeronautics and Space 
Administration shall establish a National Aeronautics and Space 
Administration Science and Technology Scholarship Program to award 
scholarships to individuals that is designed to recruit and prepare 
students for careers in the National Aeronautics and Space 
Administration.
    (2) Individuals shall be selected to receive scholarships under this 
section through a competitive process primarily on the basis of academic 
merit, with consideration given to financial need and the goal of 
promoting the participation of individuals identified in section 33 or 
34 of the Science and Engineering Equal Opportunities Act.
    (3) <<NOTE: Contracts.>> To carry out the Program the Administrator 
shall enter into contractual agreements with individuals selected under 
paragraph (2) under which the individuals agree to serve as full-time 
employees of the National Aeronautics and Space Administration, for the 
period described in subsection (f)(1), in positions needed by the 
National Aeronautics and Space Administration and for which the 
individuals are qualified, in exchange for receiving a scholarship.

    (b) In order to be eligible to participate in the Program, an 
individual must--
            (1) be enrolled or accepted for enrollment as a full-time 
        student at an institution of higher education, as a junior or 
        senior undergraduate or graduate student, in an academic field 
        or discipline described in the list made available under 
        subsection (d);
            (2) be a United States citizen or permanent resident; and
            (3) at the time of the initial scholarship award, not be an 
        employee (as defined in section 2105 of title 5, United States 
        Code).

    (c) An individual seeking a scholarship under this section shall 
submit an application to the Administrator at such time, in such manner, 
and containing such information, agreements, or assurances as the 
Administrator may require.
    (d) <<NOTE: Public information. Records.>> The Administrator shall 
make publicly available a list of academic programs and fields of study 
for which scholarships under the Program may be utilized and shall 
update the list as necessary.

    (e)(1) The Administrator may provide a scholarship under the Program 
for an academic year if the individual applying for the scholarship has 
submitted to the Administrator, as part of the application required 
under subsection (c), a proposed academic program leading to a degree in 
a program or field of study on the list made available under subsection 
(d).
    (2) An individual may not receive a scholarship under this section 
for more than 4 academic years, unless the Administrator grants a 
waiver.
    (3) <<NOTE: Regulations.>> The dollar amount of a scholarship under 
this section for an academic year shall be determined under regulations 
issued by the Administrator, but shall in no case exceed the cost of 
attendance.

    (4) <<NOTE: Regulations.>> A scholarship provided under this section 
may be expended for tuition, fees, and other authorized expenses as 
established by the Administrator by regulation.

[[Page 117 STAT. 2580]]

    (5) The Administrator may enter into a contractual agreement with an 
institution of higher education under which the amounts provided for a 
scholarship under this section for tuition, fees, and other authorized 
expenses are paid directly to the institution with respect to which the 
scholarship is provided.
    (f)(1) The period of service for which an individual shall be 
obligated to serve as an employee of the National Aeronautics and Space 
Administration is, except as provided in subsection (h)(2), 24 months 
for each academic year for which a scholarship under this section is 
provided.
    (2)(A) <<NOTE: Deadline.>> Except as provided in subparagraph (B), 
obligated service under paragraph (1) shall begin not later than 60 days 
after the individual obtains the educational degree for which the 
scholarship was provided.

    (B) The Administrator may defer the obligation of an individual to 
provide a period of service under paragraph (1) if the Administrator 
determines that such a deferral is 
appropriate. <<NOTE: Regulations.>> The Administrator shall prescribe 
the terms and conditions under which a service obligation may be 
deferred through regulation.

    (g)(1) <<NOTE: Regulations.>> Scholarship recipients who fail to 
maintain a high level of academic standing, as defined by the 
Administrator by regulation, who are dismissed from their educational 
institutions for disciplinary reasons, or who voluntarily terminate 
academic training before graduation from the educational program for 
which the scholarship was awarded, shall be in breach of their 
contractual agreement and, in lieu of any service obligation arising 
under such agreement, shall be liable to the United States for repayment 
within 1 year after the date of default of all scholarship funds paid to 
them and to the institution of higher education on their behalf under 
the agreement, except as provided in subsection (h)(2). The repayment 
period may be extended by the Administrator when determined to be 
necessary, as established by regulation.

    (2) Scholarship recipients who, for any reason, fail to begin or 
complete their service obligation after completion of academic training, 
or fail to comply with the terms and conditions of deferment established 
by the Administrator pursuant to subsection (f)(2)(B), shall be in 
breach of their contractual agreement. When recipients breach their 
agreements for the reasons stated in the preceding sentence, the 
recipient shall be liable to the United States for an amount equal to--
            (A) the total amount of scholarships received by such 
        individual under this section; plus
            (B) the interest on the amounts of such awards which would 
        be payable if at the time the awards were received they were 
        loans bearing interest at the maximum legal prevailing rate, as 
        determined by the Treasurer of the United States,

multiplied by 3.
    (h)(1) Any obligation of an individual incurred under the Program 
(or a contractual agreement thereunder) for service or payment shall be 
canceled upon the death of the individual.
    (2) <<NOTE: Regulations.>> The Administrator shall by regulation 
provide for the partial or total waiver or suspension of any obligation 
of service or payment incurred by an individual under the Program (or a 
contractual agreement thereunder) whenever compliance by the individual 
is impossible or would involve extreme hardship to the individual,

[[Page 117 STAT. 2581]]

or if enforcement of such obligation with respect to the individual 
would be contrary to the best interests of the Government.

    (i) For purposes of this section--
            (1) the term ``cost of attendance'' has the meaning given 
        that term in section 472 of the Higher Education Act of 1965;
            (2) the term ``institution of higher education'' has the 
        meaning given that term in section 101(a) of the Higher 
        Education Act of 1965; and
            (3) the term ``Program'' means the National Aeronautics and 
        Space Administration Science and Technology Scholarship Program 
        established under this section.

    (j)(1) <<NOTE: Appropriation authorization.>> There is authorized to 
be appropriated to the National Aeronautics and Space Administration for 
the Program $10,000,000 for each fiscal year.

    (2) Amounts appropriated under this section shall remain available 
for 2 fiscal years.
    (k) The Administrator may provide temporary internships to full-time 
students enrolled in an undergraduate or post-graduate program leading 
to an advanced degree in an aerospace-related or aviation safety-related 
field of endeavor.

SEC. 704. <<NOTE: 49 USC 44505 note.>> RESEARCH PROGRAM TO IMPROVE 
            AIRFIELD PAVEMENTS.

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

SEC. 705. <<NOTE: 49 USC 44505 note.>> ENSURING APPROPRIATE STANDARDS 
            FOR AIRFIELD PAVEMENTS.

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

[[Page 117 STAT. 2582]]

SEC. 706. <<NOTE: 49 USC 44702 note.>> DEVELOPMENT OF ANALYTICAL TOOLS 
            AND CERTIFICATION METHODS.

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

SEC. 707. RESEARCH ON AVIATION TRAINING.

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

SEC. 708. <<NOTE: 49 USC 44504 note.>> FAA CENTER FOR EXCELLENCE FOR 
            APPLIED RESEARCH AND TRAINING IN THE USE OF ADVANCED 
            MATERIALS IN TRANSPORT AIRCRAFT.

    (a) In General.--The <<NOTE: Establishment.>> Administrator of the 
Federal Aviation Administration shall develop a Center for Excellence 
focused on applied research and training on the durability and 
maintainability of advanced materials in transport airframe structures. 
The Center shall--
            (1) promote and facilitate collaboration among academia, the 
        Federal Aviation Administration's Transportation Division, and 
        the commercial aircraft industry, including manufacturers, 
        commercial air carriers, and suppliers; and
            (2) establish goals set to advance technology, improve 
        engineering practices, and facilitate continuing education in 
        relevant areas of study.

    (b) Authorization of Appropriations.--There is authorized to be 
appropriated to the Administrator $500,000 for fiscal year 2004 to carry 
out this section.

SEC. 709. <<NOTE: 49 USC 40101 note.>> AIR TRANSPORTATION SYSTEM JOINT 
            PLANNING AND DEVELOPMENT OFFICE.

    (a) Establishment.--(1) The Secretary of Transportation shall 
establish in the Federal Aviation Administration a joint planning and 
development office to manage work related to the Next Generation Air 
Transportation System. The office shall be known as the Next Generation 
Air Transportation System Joint Planning and Development Office (in this 
section referred to as the ``Office'').
    (2) The responsibilities of the Office shall include--
            (A) creating and carrying out an integrated plan for a Next 
        Generation Air Transportation System pursuant to subsection (b);
            (B) overseeing research and development on that system;
            (C) creating a transition plan for the implementation of 
        that system;
            (D) coordinating aviation and aeronautics research programs 
        to achieve the goal of more effective and directed programs that 
        will result in applicable research;

[[Page 117 STAT. 2583]]

            (E) coordinating goals and priorities and coordinating 
        research activities within the Federal Government with United 
        States aviation and aeronautical firms;
            (F) coordinating the development and utilization of new 
        technologies to ensure that when available, they may be used to 
        their fullest potential in aircraft and in the air traffic 
        control system;
            (G) facilitating the transfer of technology from research 
        programs such as the National Aeronautics and Space 
        Administration program and the Department of Defense Advanced 
        Research Projects Agency program to Federal agencies with 
        operational responsibilities and to the private sector; and
            (H) reviewing activities relating to noise, emissions, fuel 
        consumption, and safety conducted by Federal agencies, including 
        the Federal Aviation Administration, the National Aeronautics 
        and Space Administration, the Department of Commerce, and the 
        Department of Defense.

    (3) The Office shall operate in conjunction with relevant programs 
in the Department of Defense, the National Aeronautics and Space 
Administration, the Department of Commerce and the Department of 
Homeland Security. The Secretary of Transportation may request 
assistance from staff from those Departments and other Federal agencies.
    (4) In developing and carrying out its plans, the Office shall 
consult with the public and ensure the participation of experts from the 
private sector including representatives of commercial aviation, general 
aviation, aviation labor groups, aviation research and development 
entities, aircraft and air traffic control suppliers, and the space 
industry.
    (b) Integrated Plan.--The integrated plan shall be designed to 
ensure that the Next Generation Air Transportation System meets air 
transportation safety, security, mobility, efficiency, and capacity 
needs beyond those currently included in the Federal Aviation 
Administration's operational evolution plan and accomplishes the goals 
under subsection (c). The integrated plan shall include--
            (1) a national vision statement for an air transportation 
        system capable of meeting potential air traffic demand by 2025;
            (2) a description of the demand and the performance 
        characteristics that will be required of the Nation's future air 
        transportation system, and an explanation of how those 
        characteristics were derived, including the national goals, 
        objectives, and policies the system is designed to further, and 
        the underlying socioeconomic determinants, and associated models 
        and analyses;
            (3) a multiagency research and development roadmap for 
        creating the Next Generation Air Transportation System with the 
        characteristics outlined under clause (ii), including--
                    (A) the most significant technical obstacles and the 
                research and development activities necessary to 
                overcome them, including for each project, the role of 
                each Federal agency, corporations, and universities;
                    (B) the annual anticipated cost of carrying out the 
                research and development activities; and
                    (C) the technical milestones that will be used to 
                evaluate the activities; and
            (4) a description of the operational concepts to meet the 
        system performance requirements for all system users and a

[[Page 117 STAT. 2584]]

        timeline and anticipated expenditures needed to develop and 
        deploy the system to meet the vision for 2025.

    (c) Goals.--The Next Generation Air Transportation System shall--
            (1) improve the level of safety, security, efficiency, 
        quality, and affordability of the National Airspace System and 
        aviation services;
            (2) take advantage of data from emerging ground-based and 
        space-based communications, navigation, and surveillance 
        technologies;
            (3) integrate data streams from multiple agencies and 
        sources to enable situational awareness and seamless global 
        operations for all appropriate users of the system, including 
        users responsible for civil aviation, homeland security, and 
        national security;
            (4) leverage investments in civil aviation, homeland 
        security, and national security and build upon current air 
        traffic management and infrastructure initiatives to meet system 
        performance requirements for all system users;
            (5) be scalable to accommodate and encourage substantial 
        growth in domestic and international transportation and 
        anticipate and accommodate continuing technology upgrades and 
        advances;
            (6) accommodate a wide range of aircraft operations, 
        including airlines, air taxis, helicopters, general aviation, 
        and unmanned aerial vehicles; and
            (7) take into consideration, to the greatest extent 
        practicable, design of airport approach and departure flight 
        paths to reduce exposure of noise and emissions pollution on 
        affected residents.

    (d) Reports.--The <<NOTE: Deadlines.>> 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.

SEC. 710. <<NOTE: 49 USC 40101 note.>> NEXT GENERATION AIR 
            TRANSPORTATION SENIOR POLICY COMMITTEE.

    (a) In General.--The <<NOTE: Establishment.>> Secretary of 
Transportation shall establish a senior policy committee to work with 
the Next Generation Air Transportation System Joint Planning and 
Development Office. The senior policy committee shall be chaired by the 
Secretary.

    (b) Membership.--In addition to the Secretary, the senior policy 
committee shall be composed of--
            (1) the Administrator of the Federal Aviation Administration 
        (or the Administrator's designee);
            (2) the Administrator of the National Aeronautics and Space 
        Administration (or the Administrator's designee);
            (3) the Secretary of Defense (or the Secretary's designee);

[[Page 117 STAT. 2585]]

            (4) the Secretary of Homeland Security (or the Secretary's 
        designee);
            (5) the Secretary of Commerce (or the Secretary's designee);
            (6) the Director of the Office of Science and Technology 
        Policy (or the Director's designee); and
            (7) designees from other Federal agencies determined by the 
        Secretary of Transportation to have an important interest in, or 
        responsibility for, other aspects of the system.

    (c) Function.--The senior policy committee shall--
            (1) advise the Secretary of Transportation regarding the 
        national goals and strategic objectives for the transformation 
        of the Nation's air transportation system to meet its future 
        needs;
            (2) provide policy guidance for the integrated plan for the 
        air transportation system to be developed by the Next Generation 
        Air Transportation System Joint Planning and Development Office;
            (3) provide ongoing policy review for the transformation of 
        the air transportation system;
            (4) identify resource needs and make recommendations to 
        their respective agencies for necessary funding for planning, 
        research, and development activities; and
            (5) make legislative recommendations, as appropriate, for 
        the future air transportation system.

    (d) Consultation.--In carrying out its functions under this section, 
the senior policy committee shall consult with, and ensure participation 
by, the private sector (including representatives of general aviation, 
commercial aviation, aviation labor, and the space industry), members of 
the public, and other interested parties and may do so through a special 
advisory committee composed of such representatives.

SEC. 711. <<NOTE: 49 USC 44504 note.>> ROTORCRAFT RESEARCH AND 
            DEVELOPMENT INITIATIVE.

    (a) Objective.--The Administrator of the Federal Aviation 
Administration shall establish a rotorcraft initiative with the 
objective of developing, and demonstrating in a relevant environment, 
within 10 years after the date of the enactment of this Act, 
technologies to enable rotorcraft with the following improvements 
relative to rotorcraft existing as of the date of the enactment of this 
Act:
            (1) 80 percent reduction in noise levels on takeoff and on 
        approach and landing as perceived by a human observer.
            (2) Factor of 10 reduction in vibration.
            (3) 30 percent reduction in empty weight.
            (4) Predicted accident rate equivalent to that of fixed-wing 
        aircraft in commercial service within 10 years after the date of 
        the enactment of this Act.
            (5) Capability for zero-ceiling, zero-visibility operations.

    (b) Implementation.--Within 180 <<NOTE: Deadline.>> days after the 
date of the enactment of this Act, the Administrator of the Federal 
Aviation Administration, in cooperation with the Administrator of the 
National Aeronautics and Space Administration, shall provide a plan to 
the Committee on Science of the House of Representatives and to the 
Committee on Commerce, Science, and Transportation of the Senate for the 
implementation of the initiative described in subsection (a).

[[Page 117 STAT. 2586]]

SEC. 712. AIRPORT COOPERATIVE RESEARCH PROGRAM.

    Section 44511 is amended by adding at the end the following new 
subsection:
    ``(f) Airport Cooperative Research Program.--
            ``(1) Establishment.--The Secretary of Transportation shall 
        establish a 4-year pilot airport cooperative research program 
        to--
                    ``(A) identify problems that are shared by airport 
                operating agencies and can be solved through applied 
                research but that are not being adequately addressed by 
                existing Federal research programs; and
                    ``(B) fund research to address those problems.
            ``(2) Governance.--The <<NOTE: Establishment.>> 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 <<NOTE: Contracts.>> 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 <<NOTE: Deadline.>> later than 6 months 
        after the expiration of the program under this subsection, the 
        Secretary shall transmit to the Congress a report on the 
        program, including recommendations as to the need for 
        establishing a permanent airport cooperative research 
        program.''.

                        TITLE VIII--MISCELLANEOUS

SEC. 801. DEFINITIONS.

    (a) In General.--Section 47102 is amended--
            (1) by redesignating paragraphs (19) and (20) as paragraphs 
        (24) and (25), respectively;
            (2) by inserting after paragraph (18) the following:
            ``(23) `small hub airport' means a commercial service 
        airport that has at least 0.05 percent but less than 0.25 
        percent of the passenger boardings.'';
            (3) in paragraph (10) by striking subparagraphs (A) and (B) 
        and inserting following:
                    ``(A) means, unless the context indicates otherwise, 
                revenue passenger boardings in the United States in the 
                prior calendar year on an aircraft in service in air 
                commerce, as the Secretary determines under regulations 
                the Secretary prescribes; and
                    ``(B) includes passengers who continue on an 
                aircraft in international flight that stops at an 
                airport in the 48 contiguous States, Alaska, or Hawaii 
                for a nontraffic purpose.'';
            (4) by redesignating paragraphs (10) through (18) as 
        paragraphs (14) through (22), respectively;

[[Page 117 STAT. 2587]]

            (5) by inserting after paragraph (9) the following:
            ``(10) `large hub airport' means a commercial service 
        airport that has at least 1.0 percent of the passenger 
        boardings.
            ``(12) `medium hub airport' means a commercial service 
        airport that has at least 0.25 percent but less than 1.0 percent 
        of the passenger boardings.
            ``(13) `nonhub airport' means a commercial service airport 
        that has less than 0.05 percent of the passenger boardings.''; 
        and
            (6) by striking paragraph (6) and inserting the following:
            ``(6) `amount made available under section 48103' or `amount 
        newly made available' means the amount authorized for grants 
        under section 48103 as that amount may be limited in that year 
        by a subsequent law, but as determined without regard to grant 
        obligation recoveries made in that year or amounts covered by 
        section 47107(f).''.

    (b) Conforming Amendment.--Section 47116(b)(1) is amended by 
striking ``(as defined in section 41731 of this title)''.

SEC. 802. <<NOTE: Deadline.>> REPORT ON AVIATION SAFETY REPORTING 
            SYSTEM.

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

SEC. 803. ANCHORAGE AIR TRAFFIC CONTROL.

    (a) In General.--Not <<NOTE: Deadline. Reports.>> later than 
September 30, 2004, the Administrator of the Federal Aviation 
Administration shall complete a study and transmit a report to the 
appropriate committees regarding the feasibility of consolidating the 
Anchorage Terminal Radar Approach Control and the Anchorage Air Route 
Traffic Control Center at the existing Anchorage Air Route Traffic 
Control Center facility.

    (b) Appropriate Committees.--In this section, the term ``appropriate 
committees'' means the Committee on Commerce, Science, and 
Transportation of the Senate and the Committee on Transportation and 
Infrastructure of the House of Representatives.

SEC. 804. EXTENSION OF METROPOLITAN WASHINGTON AIRPORTS AUTHORITY.

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

SEC. 805. IMPROVEMENT OF AVIATION INFORMATION COLLECTION.

    (a) In General.--Section 329(b)(1) is amended by striking ``except 
that in no case'' and all that follows through the semicolon at the end 
and inserting the following: ``except that, if the Secretary requires 
air carriers to provide flight-specific information, the Secretary--
                    ``(A) shall not disseminate fare information for a 
                specific flight to the general public for a period of at 
                least 9 months following the date of the flight; and
                    ``(B) shall give due consideration to and address 
                confidentiality concerns of carriers, including 
                competitive implications, in any rulemaking prior to 
                adoption of a

[[Page 117 STAT. 2588]]

                rule requiring the dissemination to the general public 
                of any flight-specific fare;''.

    (b) Effective Date.--The <<NOTE: 49 USC 329 note.>> amendment made 
by subsection (a) shall take effect on the date of the issuance of a 
final rule to modernize the Origin and Destination Survey of Airline 
Passenger Traffic, pursuant to the Advance Notice of Proposed Rulemaking 
published July 15, 1998 (Regulation Identifier Number 2105-AC71), that 
reduces the reporting burden for air carriers through electronic filing 
of the survey data collected under section 329(b)(1) of title 49, United 
States Code.

SEC. 806. GOVERNMENT-FINANCED AIR TRANSPORTATION.

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

SEC. 807. AIR CARRIER CITIZENSHIP.

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

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

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

SEC. 809. AVAILABILITY OF AIRCRAFT ACCIDENT SITE INFORMATION.

    (a) Domestic Air Transportation.--Section 41113(b) is amended--
            (1) in paragraph (16) by striking ``the air carrier'' the 
        third place it appears; and
            (2) by adding at the end the following:
            ``(17)(A) <<NOTE: Notice.>> An assurance that, in the case 
        of an accident that results in significant damage to a manmade 
        structure or other property on the ground that is not 
        government-owned, the air carrier will promptly provide notice, 
        in writing, to

[[Page 117 STAT. 2589]]

        the extent practicable, directly to the owner of the structure 
        or other property about liability for any property damage and 
        means for obtaining compensation.
            ``(B) At a minimum, the written notice shall advise an owner 
        (i) to contact the insurer of the property as the authoritative 
        source for information about coverage and compensation; (ii) to 
        not rely on unofficial information offered by air carrier 
        representatives about compensation by the air carrier for 
        accident-site property damage; and (iii) to obtain photographic 
        or other detailed evidence of property damage as soon as 
        possible after the accident, consistent with restrictions on 
        access to the accident site.
            ``(18) <<NOTE: Electronic information.>> An assurance that, 
        in the case of an accident in which the National Transportation 
        Safety Board conducts a public hearing or comparable proceeding 
        at a location greater than 80 miles from the accident site, the 
        air carrier will ensure that the proceeding is made available 
        simultaneously by electronic means at a location open to the 
        public at both the origin city and destination city of the air 
        carrier's flight if that city is located in the United 
        States.''.

    (b) Foreign Air Transportation.--Section 41313(c) is amended by 
adding at the end the following:
            ``(17) Notice concerning liability for manmade structures.--
                    ``(A) In general.--An assurance that, in the case of 
                an accident that results in significant damage to a 
                manmade structure or other property on the ground that 
                is not government-owned, the foreign air carrier will 
                promptly provide notice, in writing, to the extent 
                practicable, directly to the owner of the structure or 
                other property about liability for any property damage 
                and means for obtaining compensation.
                    ``(B) Minimum contents.--At a minimum, the written 
                notice shall advise an owner (i) to contact the insurer 
                of the property as the authoritative source for 
                information about coverage and compensation; (ii) to not 
                rely on unofficial information offered by foreign air 
                carrier representatives about compensation by the 
                foreign air carrier for accident-site property damage; 
                and (iii) to obtain photographic or other detailed 
                evidence of property damage as soon as possible after 
                the accident, consistent with restrictions on access to 
                the accident site.
            ``(18) Simultaneous electronic transmission of ntsb 
        hearing.--An assurance that, in the case of an accident in which 
        the National Transportation Safety Board conducts a public 
        hearing or comparable proceeding at a location greater than 80 
        miles from the accident site, the foreign air carrier will 
        ensure that the proceeding is made available simultaneously by 
        electronic means at a location open to the public at both the 
        origin city and destination city of the foreign air carrier's 
        flight if that city is located in the United States.''.

    (c) Update Plans.--Air <<NOTE: Deadline. 49 USC 41113 
note.>> carriers and foreign air carriers shall update their plans under 
sections 41113 and 41313 of title 49, United States Code, respectively, 
to reflect the amendments made by subsections (a) and (b) of this 
section not later than 90 days after the date of enactment of this Act.

[[Page 117 STAT. 2590]]

SEC. 810. NOTICE CONCERNING AIRCRAFT ASSEMBLY.

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

``Sec. 41723. <<NOTE: Effective date.>> Notice concerning aircraft 
                        assembly

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

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

SEC. 811. TYPE CERTIFICATES.

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

SEC. 812. <<NOTE: 49 USC 40105 note.>> RECIPROCAL AIRWORTHINESS 
            CERTIFICATION.

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

SEC. 813. INTERNATIONAL ROLE OF THE FAA.

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

SEC. 814. FLIGHT ATTENDANT CERTIFICATION.

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

``Sec. 44728. Flight attendant certification

    ``(a) Certificate Required.--
            ``(1) In general.--No person may serve as a flight attendant 
        aboard an aircraft of an air carrier unless that person

[[Page 117 STAT. 2591]]

        holds a certificate of demonstrated proficiency from the 
        Administrator of the Federal Aviation Administration. Upon the 
        request of the Administrator or an authorized representative of 
        the National Transportation Safety Board or another Federal 
        agency, a person who holds such a certificate shall present the 
        certificate for inspection within a reasonable period of time 
        after the date of the request.
            ``(2) Special rule for current flight attendants.--An 
        individual serving as a flight attendant on the effective date 
        of this section may continue to serve aboard an aircraft as a 
        flight attendant until completion by that individual of the 
        required recurrent or requalification training and subsequent 
        certification under this section.
            ``(3) Treatment of flight attendant after notification.--On 
        the date that the Administrator is notified by an air carrier 
        that an individual has the demonstrated proficiency to be a 
        flight attendant, the individual shall be treated for purposes 
        of this section as holding a certificate issued under the 
        section.

    ``(b) Issuance of Certificate.--The Administrator shall issue a 
certificate of demonstrated proficiency under this section to an 
individual after the Administrator is notified by the air carrier that 
the individual has successfully completed all the training requirements 
for flight attendants approved by the Administrator.
    ``(c) Designation of Person To Determine Successful Completion of 
Training.--In accordance with part 183 of chapter 14, Code of Federal 
Regulation, the director of operations of an air carrier is designated 
to determine that an individual has successfully completed the training 
requirements approved by the Administrator for such individual to serve 
as a flight attendant.
    ``(d) Specifications Relating to Certificates.--Each certificate 
issued under this section shall--
            ``(1) be numbered and recorded by the Administrator;
            ``(2) contain the name, address, and description of the 
        individual to whom the certificate is issued;
            ``(3) is similar in size and appearance to certificates 
        issued to airmen;
            ``(4) contain the airplane group for which the certificate 
        is issued; and
            ``(5) <<NOTE: Deadlines.>> be issued not later than 120 days 
        after the Administrator receives notification from the air 
        carrier of demonstrated proficiency and, in the case of an 
        individual serving as flight attendant on the effective date of 
        this section, not later than 1 year after such effective date.

    ``(e) Approval of Training Programs.--Air carrier flight attendant 
training programs shall be subject to approval by the Administrator. All 
flight attendant training programs approved by the Administrator in the 
1-year period ending on the date of enactment of this section shall be 
treated as providing a demonstrated proficiency for purposes of meeting 
the certification requirements of this section.
    ``(f) Flight Attendant Defined.--In this section, the term `flight 
attendant' means an individual working as a flight attendant in the 
cabin of an aircraft that has 20 or more seats and is being used by an 
air carrier to provide air transportation.''.

[[Page 117 STAT. 2592]]

    (b) Conforming Amendment.--The analysis for chapter 447 is further 
amended by adding at the end the following:

``44728. Flight attendant certification.''.

    (c) Effective Date.--The <<NOTE: 49 USC 44728 note.>> amendments 
made by subsections (a) and (b) shall take effect on the 365th day 
following the date of enactment of this Act.

SEC. 815. <<NOTE: 49 USC 40101 note.>> AIR QUALITY IN AIRCRAFT CABINS.

    (a) In General.--The Administrator of the Federal Aviation 
Administration shall undertake the studies and analysis called for in 
the report of the National Research Council entitled ``The Airliner 
Cabin Environment and the Health of Passengers and Crew''.
    (b) Required Activities.--In carrying out this section, the 
Administrator, at a minimum, shall--
            (1) conduct surveillance to monitor ozone in the cabin on a 
        representative number of flights and aircraft to determine 
        compliance with existing Federal Aviation Regulations for ozone;
            (2) collect pesticide exposure data to determine exposures 
        of passengers and crew;
            (3) analyze samples of residue from aircraft ventilation 
        ducts and filters after air quality incidents to identify the 
        contaminants to which passengers and crew were exposed;
            (4) analyze and study cabin air pressure and altitude; and
            (5) establish an air quality incident reporting system.

    (c) Report.--Not <<NOTE: Deadline.>> later than 30 months after the 
date of enactment of this Act, the Administrator shall transmit to 
Congress a report on the findings of the Administrator under this 
section.

SEC. 816. RECOMMENDATIONS CONCERNING TRAVEL AGENTS.

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

    (b) Consultation.--In preparing this report, the Secretary shall 
consult with representatives from the airline and travel agent industry.

SEC. 817. <<NOTE: 49 USC 40101 note.>> REIMBURSEMENT FOR LOSSES INCURRED 
            BY GENERAL AVIATION ENTITIES.

    (a) In General.--The Secretary of Transportation may make grants to 
reimburse the following general aviation entities for the security costs 
incurred and revenue foregone as a result of the restrictions imposed by 
the Federal Government following the terrorist attacks on the United 
States that occurred on September 11, 2001:
            (1) General aviation entities that operate at Ronald Reagan 
        Washington National Airport.
            (2) Airports that are located within 15 miles of Ronald 
        Reagan Washington National Airport and were operating under

[[Page 117 STAT. 2593]]

        security restrictions on the date of enactment of this Act and 
        general aviation entities operating at those airports.
            (3) General aviation entities affected by implementation of 
        section 44939 of title 49, United States Code.
            (4) General aviation entities that were affected by Federal 
        Aviation Administration Notices to Airmen FDC 2/1099 and 3/1862 
        or section 352 of the Department of Transportation and Related 
        Agencies Appropriations Act, 2003 (Public Law 108-7, division 
        I), or both.
            (5) Sightseeing operations that were not authorized to 
        resume in enhanced class B air space under Federal Aviation 
        Administration notice to airmen 1/1225.

    (b) Documentation.--Reimbursement under this section shall be made 
in accordance with sworn financial statements or other appropriate data 
submitted by each general aviation entity demonstrating the costs 
incurred and revenue foregone to the satisfaction of the Secretary.
    (c) General Aviation Entity Defined.--In this section, the term 
``general aviation entity'' means any person (other than a scheduled air 
carrier or foreign air carrier, as such terms are defined in section 
40102 of title 49, United States Code) that--
            (1) operates nonmilitary aircraft under part 91 of title 14, 
        Code of Federal Regulations, for the purpose of conducting its 
        primary business;
            (2) manufactures nonmilitary aircraft with a maximum seating 
        capacity of fewer than 20 passengers or aircraft parts to be 
        used in such aircraft;
            (3) provides services necessary for nonmilitary operations 
        under such part 91; or
            (4) operates an airport, other than a primary airport (as 
        such terms are defined in such section 40102), that--
                    (A) is listed in the national plan of integrated 
                airport systems developed by the Federal Aviation 
                Administration under section 47103 of such title; or
                    (B) is normally open to the public, is located 
                within the confines of enhanced class B airspace (as 
                defined by the Federal Aviation Administration in Notice 
                to Airmen FDC 1/0618), and was closed as a result of an 
                order issued by the Federal Aviation Administration in 
                the period beginning September 11, 2001, and ending 
                January 1, 2002, and remained closed as a result of that 
                order on January 1, 2002.

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

SEC. 818. INTERNATIONAL AIR SHOW.

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

[[Page 117 STAT. 2594]]

SEC. 819. <<NOTE: Deadline.>> REPORT ON CERTAIN MARKET DEVELOPMENTS AND 
            GOVERNMENT POLICIES.

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

SEC. 820. INTERNATIONAL AIR TRANSPORTATION.

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

SEC. 821. <<NOTE: 49 USC 44903 note.>> REIMBURSEMENT OF AIR CARRIERS FOR 
            CERTAIN SCREENING AND RELATED ACTIVITIES.

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

SEC. 822. CHARTER AIRLINES.

    (a) In General.--Section 41104(b)(1) is amended--
            (1) by striking ``paragraph (3)'' and inserting ``paragraphs 
        (3) and (4)'';
            (2) by inserting a comma after ``regularly scheduled charter 
        air transportation''; and
            (3) by striking ``flight unless such air transportation'' 
        and all that follows through the period at the end and inserting 
        the following: ``flight, to or from an airport that--

[[Page 117 STAT. 2595]]

                    ``(A) does not have an airport operating certificate 
                issued under part 139 of title 14, Code of Federal 
                Regulations (or any subsequent similar regulation); or
                    ``(B) has an airport operating certificate issued 
                under part 139 of title 14, Code of Federal Regulations 
                (or any subsequent similar regulation) if the airport--
                          ``(i) is a reliever airport (as defined in 
                      section 47102) and is designated as such in the 
                      national plan of integrated airports maintained 
                      under section 47103; and
                          ``(ii) is located within 20 nautical miles (22 
                      statute miles) of 3 or more airports that each 
                      annually account for at least 1 percent of the 
                      total United States passenger enplanements and at 
                      least 2 of which are operated by the sponsor of 
                      the reliever airport.''.

    (b) Waivers.--Section 41104(b) is amended by adding at the end the 
following:
            ``(4) Waivers.--The Secretary may waive the application of 
        paragraph (1)(B) in cases in which the Secretary determines that 
        the public interest so requires.''.

SEC. 823. <<NOTE: 49 USC 41718 note.>> GENERAL AVIATION FLIGHTS AT 
            RONALD REAGAN WASHINGTON NATIONAL AIRPORT.

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

SEC. 824. <<NOTE: Deadline. Reports.>> REVIEW OF AIR CARRIER 
            COMPENSATION.

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

SEC. 825. NOISE CONTROL PLAN FOR CERTAIN AIRPORTS.

    (a) In General.--Notwithstanding chapter 475 of title 49, United 
States Code, or any other provision of law or regulation,

[[Page 117 STAT. 2596]]

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

SEC. 826. <<NOTE: 49 USC 40101 note.>> GAO REPORT ON AIRLINES' ACTIONS 
            TO IMPROVE FINANCES AND ON EXECUTIVE COMPENSATION.

    (a) Finding.--Congress finds that the United States Government has 
by law provided substantial financial assistance to United States 
commercial airlines in the form of war risk insurance and reinsurance 
and other economic benefits and has imposed substantial economic and 
regulatory burdens on those airlines. In order to determine the economic 
viability of the domestic commercial airline industry and to evaluate 
the need for additional measures or the modification of existing laws, 
Congress needs more frequent information and independently verified 
information about the financial condition of these airlines.
    (b) GAO Report.--Not <<NOTE: Deadline.>> later than one year after 
the date of enactment of this Act, the Comptroller General shall prepare 
a report for Congress analyzing the financial condition of the United 
States airline industry in its efforts to reduce the costs, improve the 
earnings and profits and balances of each individual air carrier. The 
report shall recommend steps that the industry should take to become 
financially self-sufficient.

    (c) GAO Authority.--In order to compile the report required by 
subsection (b), the Comptroller General, or any of the Comptroller 
General's duly authorized representatives, shall have access for the 
purpose of audit and examination to any books, accounts, documents, 
papers, and records of such air carriers that relate to the information 
required to compile the report. <<NOTE: Certification.>> The Comptroller 
General shall submit with the report a certification as to whether the 
Comptroller General has had access to sufficient information to make 
informed judgments on the matters covered by the report.

    (d) Reports to Congress.--The Comptroller General shall transmit the 
report required by subsection (b) to the Senate Committee on Commerce, 
Science, and Transportation and the House of Representatives Committee 
on Transportation and Infrastructure.

SEC. 827. PRIVATE AIR CARRIAGE IN ALASKA.

    (a) In General.--Due to the demands of conducting business within 
and from the State of Alaska, the Secretary of Transportation shall 
permit, under the operating rules of part 91 of title 14 of the Code of 
Federal Regulations where common carriage is not involved, a company, 
located in the State of Alaska, to organize

[[Page 117 STAT. 2597]]

a subsidiary where the only enterprise of the subsidiary is to provide 
air carriage of officials, employees, guests, and property of the 
company, or its affiliate, when the carriage--
            (1) originates or terminates in the State of Alaska;
            (2) is by an aircraft with no more than 20 seats;
            (3) is within the scope of, and incidental to, the business 
        of the company or its affiliate; and
            (4) no charge, assessment, or fee is made for the carriage 
        in excess of the cost of owning, operating, and maintaining the 
        airplane.

    (b) Limitation on Statutory Construction.--Nothing in this 
subsection shall be construed as prohibiting a company from making 
intermediate stops in providing air carriage under this section.

SEC. 828. <<NOTE: Deadline.>> REPORT ON WAIVERS OF PREFERENCE FOR BUYING 
            GOODS PRODUCED IN THE UNITED STATES.

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

SEC. 829. NAVIGATION FEES.

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

    (b) Effective Date.--The <<NOTE: 33 USC 5 note.>> amendment made by 
subsection (a) is effective on and after November 25, 2002.

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

SEC. 901. EXTENSION OF EXPENDITURE AUTHORITY.

    (a) In General.--Paragraph (1) of section 9502(d) of the Internal 
Revenue Code of 1986 <<NOTE: 26 USC 9502.>> (relating to expenditures 
from Airport and Airway Trust Fund) is amended--
            (1) by striking ``October 1, 2003'' and inserting ``October 
        1, 2007'', and

[[Page 117 STAT. 2598]]

            (2) by inserting before the semicolon at the end of 
        subparagraph (A) the following: ``or the Vision 100--Century of 
        Aviation Reauthorization Act''.

    (b) Conforming Amendment.--Paragraph (2) of section 9502(f) of the 
Internal Revenue Code of 1986 is amended by striking ``October 1, 2003'' 
and inserting ``October 1, 2007''.

SEC. 902. TECHNICAL CORRECTION TO FLIGHT SEGMENT.

    (a) Special Rule.--Section 4261(e)(4) of the Internal Revenue Code 
of 1986 <<NOTE: 26 USC 4261.>> is amended by adding at the end the 
following new subparagraph:
                    ``(D) Special rule for amounts paid for domestic 
                segments beginning after 2002.--If an amount is paid 
                during a calendar year for a domestic segment beginning 
                in a later calendar year, then the rate of tax under 
                subsection (b) on such amount shall be the rate in 
                effect for the calendar year in which such amount is 
                paid.''.

    (b) Effective Date.--The <<NOTE: 26 USC 4261 note.>> amendment made 
by subsection (a) shall take effect as if included in the provisions of 
the Taxpayer Relief Act of 1997 to which they relate.

    Approved December 12, 2003.

LEGISLATIVE HISTORY--H.R. 2115 (S. 824):
---------------------------------------------------------------------------

HOUSE REPORTS: Nos. 108-143 (Comm. on Transportation and Infrastructure) 
and 108-240 and 108-334 (both from Comm. of Conference).
SENATE REPORTS: No. 108-41 accompanying S. 824 (Comm. on Commerce, 
Science, and Transportation).
CONGRESSIONAL RECORD, Vol. 149 (2003):
            June 11, considered and passed House.
            June 12, considered and passed Senate, amended, in lieu of 
                S. 824.
            Oct. 28, House recommitted conference report pursuant to H. 
                Res. 337.
            Oct. 30, House agreed to conference report.
            Nov. 21, Senate agreed to conference report.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 39 (2003):
            Dec. 12, Presidential statement.

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