    [United States Statutes at Large, Volume 117, 108th Congress, 1st Session]
    [From the U.S. Government Publishing Office, www.gpo.gov]

    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. <>

    Be it enacted by the Senate and House of Representatives of the
    United States of America in Congress <> assembled,

    SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

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

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

    TITLE I--AIRPORT AND AIRWAY IMPROVEMENTS

    Subtitle A--Funding of FAA Programs

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

    Subtitle B--Passenger Facility Fees

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

    Subtitle C--AIP Modifications

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

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    117 STAT. 2491

    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.

    [[Page 2492]]
    117 STAT. 2492

    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 2493]]
    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. <> APPLICABILITY.

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

    SEC. 4. <> FINDINGS.

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

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    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 2495]]
    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 2496]]
    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 <> 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 2497]]
    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 2498]]
    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 2499]]
    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 <> November 19, 2001, section 124(b) of the Aviation and
    Transportation Security Act (115 Stat. 631) <> is
    amended by striking ``to carry out foreign policy'' and inserting ``to
    carry out the foreign policy''.

    Subtitle B--Passenger Facility Fees

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

    (a) In General.--Section 40117(a)(3) is amended by inserting at the
    end the following:
    ``(G) A project for converting vehicles and ground
    support equipment used at a commercial service airport
    to low-emission technology (as defined in section 47102)
    or to use cleaner burning conventional fuels,
    retrofitting of any such vehicles or equipment that are
    powered by a diesel or gasoline engine with emission
    control technologies certified or verified by the
    Environmental Protection Agency to reduce emissions, or
    acquiring for use at a commercial service airport
    vehicles and ground support equipment that include low-
    emission technology or use cleaner burning fuels if the
    airport is located in an air quality nonattainment area
    (as defined in section 171(2) of the Clean Air Act (42
    U.S.C. 7501(2))) or a maintenance area 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 2500]]
    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 <> 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 2501]]
    117 STAT. 2501

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

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

    [[Page 2502]]
    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 <> to impose fee.--Unless
    the Secretary objects within 30 days after receipt of the
    eligible agency's notice, the eligible agency is authorized to
    impose a passenger facility fee in accordance with the terms of
    its notice under this subsection.
    ``(6) Regulations.--Not <> later than 180
    days after the date of enactment of this subsection, the
    Secretary shall propose such regulations as may be necessary to
    carry out this subsection.
    ``(7) Sunset.--This subsection shall cease to be effective
    beginning on the date that is 3 years after the date of issuance
    of regulations to carry out this subsection.
    ``(8) Acknowledgement not an order.--An acknowledgement
    issued under paragraph (4) shall not be considered an order
    issued by the Secretary for purposes of section 46110.''.

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

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

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

    SEC. 124. FINANCIAL MANAGEMENT OF PASSENGER FACILITY FEES.

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

    [[Page 2503]]
    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 2504]]
    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 2505]]
    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 2506]]
    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 2507]]
    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 2508]]
    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 <> air carrier shall be deemed to
    have approved a sponsor's application for an exemption
    under subparagraph (A) unless the air carrier has
    submitted an objection, in writing, to the sponsor
    within 60 days of the filing of the sponsor's
    application with the Secretary, or within 60 days of the
    service of the application upon that air carrier,
    whichever is later.''.

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

    SEC. 156. INNOVATIVE FINANCING TECHNIQUES.

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

    SEC. 157. AIRPORT SECURITY PROGRAM.

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

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

    SEC. 158. EMISSION CREDITS FOR AIR QUALITY PROJECTS.

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

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

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

    [[Page 2509]]
    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 2510]]
    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) <> 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 2511]]
    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 2512]]
    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 2513]]
    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. <> TEMPORARY INCREASE IN GOVERNMENT
    SHARE OF CERTAIN AIP PROJECT COSTS.

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

    SEC. 162. SHARE OF AIRPORT PROJECT COSTS.

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

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

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

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

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

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

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

    [[Page 2514]]
    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 2515]]
    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. <> 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 2516]]
    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 2517]]
    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. <> FACILITIES AND EQUIPMENT REPORTS.

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

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

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

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

    [[Page 2518]]
    117 STAT. 2518

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

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

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

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

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

    SEC. 186. MIDWAY ISLAND AIRPORT.

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

    SEC. 187. INTERMODAL PLANNING.

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

    [[Page 2519]]
    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. <> CONVEYANCE OF AIRPORT.

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

    [[Page 2520]]
    117 STAT. 2520

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

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

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

    [[Page 2521]]
    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 2522]]
    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 2523]]
    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 2524]]
    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. <> 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 2525]]
    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 2526]]
    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. <> CONTROLLER STAFFING.

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

    [[Page 2527]]
    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 <> later than 30 days
    after the date on which the strategy is completed, the
    Administrator shall transmit to Congress a report describing the
    strategy.

    SEC. 222. WHISTLEBLOWER PROTECTION UNDER ACQUISITION MANAGEMENT SYSTEM.

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

    SEC. 223. FAA PURCHASE CARDS.

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

    SEC. 224. PROCUREMENT.

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

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

    [[Page 2528]]
    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 2529]]
    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 2530]]
    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 <> Date.--
    (1) In general.--This section and the amendments made by
    this section--
    (A) shall take effect on the 60th day after the date
    of enactment of this Act; and
    (B) <> shall apply with
    respect to--
    (i) any annuity entitlement to which is based
    on an individual's separation from service
    occurring on or after the effective date of this
    section; and
    (ii) any service performed by any such
    individual before, on, or after the effective date
    of this section, subject to paragraph (2).
    (2) Special rule.--
    (A) Deposit requirement.--For purposes of
    determining eligibility for immediate retirement under
    section 8412(e) of title 5, United States Code, the
    amendment made by subsection (a)(2) shall, with respect
    to any service described in subparagraph (B), be
    disregarded unless there is deposited into the Civil
    Service Retirement and Disability Fund, with respect to
    such service, in such time, form, and manner as the
    Office of Personnel Management by regulation requires,
    an amount equal to the amount by which--
    (i) the deductions from pay which would have
    been required for such service if the amendments
    made

    [[Page 2531]]
    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 <> paragraph applies with
    respect to any service performed by an individual before
    the effective date of this section as an employee
    described in section 8401(35)(B) of title 5, United
    States Code (as amended by subsection (a)(2)).

    SEC. 227. DESIGN ORGANIZATION CERTIFICATES.

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

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

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

    [[Page 2532]]
    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. <> 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 2533]]
    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 <> III--ENVIRONMENTAL PROCESS

    Subtitle A--Aviation Development Streamlining

    SEC. 301. <> SHORT TITLE.

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

    SEC. 302. <> FINDINGS.

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

    SEC. 303. AIRPORT CAPACITY ENHANCEMENT.

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

    SEC. 304. AVIATION PROJECT STREAMLINING.

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

    [[Page 2534]]
    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 <> 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 2535]]
    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 <> 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 2536]]
    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 2537]]
    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 2538]]
    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 2539]]
    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. <> ISSUANCE OF ORDERS.

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

    SEC. 308. <> LIMITATIONS.

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

    [[Page 2540]]
    117 STAT. 2540

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

    SEC. 309. <> RELATIONSHIP TO OTHER
    REQUIREMENTS.

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

    Subtitle B--Miscellaneous

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

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

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

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

    SEC. 322. <> NOISE DISCLOSURE.

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

    [[Page 2541]]
    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 <> 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 2542]]
    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. <> IMPLEMENTATION OF
    CHAPTER 4 NOISE STANDARDS.

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

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

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

    SEC. 327. SPECIAL RULE FOR AIRPORT IN ILLINOIS.

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

    TITLE IV--AIRLINE SERVICE IMPROVEMENTS

    Subtitle A--Small Community Air Service

    SEC. 401. EXEMPTION FROM HOLD-IN REQUIREMENTS.

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

    [[Page 2543]]
    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 <> 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 2544]]
    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 2545]]
    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. <> 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 2546]]
    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 2547]]
    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. <> 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 2548]]
    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 <> later than
    60 days after receiving a request under subsection (a), the Secretary
    shall--
    (1) determine whether the eligible place would have been
    subject to an elimination of compensation eligibility for
    essential air service, or termination of the eligibility of such
    place for essential air service, under the provisions of law
    referred to in subsection (a) based on the determination of the
    highway mileage of such place from the nearest medium hub
    airport or large hub airport under subsection (b); and
    (2) issue a final order with respect to the eligibility of
    such place for essential air service compensation under
    subchapter II of chapter 417 of title 49, United States Code.

    (d) Limitation on Period of Final Order.--A <> final order issued under subsection (c) shall terminate on
    September 30, 2007.

    SEC. 410. <> INCENTIVE PROGRAM.

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

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

    ``Sec. 41748. Marketing program

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

    [[Page 2549]]
    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 2550]]
    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 <> later than 6 months after the
    date on which initial appointments of members to the Commission are
    completed, the Commission shall transmit to the President and Congress a
    report on the activities of the Commission, including recommendations
    made by the Commission under subsection (e).

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

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

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

    [[Page 2551]]
    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 2552]]
    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 <> shall ensure that a transcript of the meeting
    is kept and made available to the public not later than 3 business days
    after the conclusion of the meeting.''.

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

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

    SEC. 423. COLLABORATIVE DECISIONMAKING PILOT PROGRAM.

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

    ``Sec. 40129. Collaborative decisionmaking pilot program

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

    [[Page 2553]]
    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 <> 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 2554]]
    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 2555]]
    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 <> February 1 and August 1 of each
    year, an airport that during the previous 6-month period has
    been unable to accommodate one or more requests by an air
    carrier for access to gates or other facilities at that airport
    in order to provide service to the airport or to expand service
    at the airport shall transmit a report to the Secretary that--
    ``(A) describes the requests;
    ``(B) provides an explanation as to why the requests
    could not be accommodated; and
    ``(C) provides a time frame within which, if any,
    the airport will be able to accommodate the requests.
    ``(3) Sunset provision.--This subsection shall cease to be
    effective beginning October 1, 2008.''.

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

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

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

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

    SEC. 426. DEFINITION OF COMMUTER AIRCRAFT.

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

    [[Page 2556]]
    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 <> 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 2557]]
    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 <> 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 2558]]
    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 2559]]
    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. <> IMPROVEMENT OF CURRICULUM
    STANDARDS FOR AVIATION MAINTENANCE TECHNICIANS.

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

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

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

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

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

    [[Page 2560]]
    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. <> FAA INSPECTOR TRAINING.

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

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

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

    [[Page 2561]]
    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 <> 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 2562]]
    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. <> The Board shall establish a panel to
    review the decision. The members of this panel (1) shall not be
    employees of the Transportation Security Administration, (2) shall have
    the level of security clearance needed to review the determination made
    under this section, and (3) shall be given access to all relevant
    documents that support that determination. The panel may affirm, modify,
    or reverse the decision.

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

    [[Page 2563]]
    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. <> JUSTIFICATION FOR AIR DEFENSE
    IDENTIFICATION ZONE.

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

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

    SEC. 603. CREW TRAINING.

    Section 44918 is amended to read as follows:

    ``Sec. 44918. Crew training

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

    [[Page 2564]]
    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 <> later than
    one year after the date of enactment of the Vision 100--Century
    of Aviation Reauthorization Act, the Under Secretary may
    establish minimum standards for the training provided under this
    subsection and for recurrent training.
    ``(5) Existing programs.--Notwithstanding paragraphs (3) and
    (4), any training program of an air carrier to prepare flight
    and cabin crew members for potential threat conditions that was
    approved by the Administrator or the Under Secretary before the
    date of enactment of the Vision 100--Century of Aviation
    Reauthorization Act may continue in effect until disapproved or
    ordered modified by the Under Secretary.
    ``(6) Monitoring.--The Under Secretary, in consultation with
    the Administrator, shall monitor air carrier training programs
    under this subsection and periodically shall review an air
    carrier's training program to ensure that the program is
    adequately preparing crew members for potential threat
    conditions. In determining when an air carrier's training
    program should be reviewed under this paragraph, the Under
    Secretary shall consider complaints from crew members. The Under
    Secretary shall ensure that employees responsible for monitoring
    the training programs have the necessary resources and
    knowledge.
    ``(7) Updates.--The Under Secretary, in consultation with
    the Administrator, shall order air carriers to modify training
    programs under this subsection to reflect new or different
    security threats.

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

    [[Page 2565]]
    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 <> 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 2566]]
    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 <> 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 2567]]
    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 2568]]
    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 <> (49 U.S.C. 44944 note)
    is repealed.

    SEC. 607. <> CAPPS2.

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

    [[Page 2569]]
    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 <> later than 90 days after
    the date on which certification is provided under subsection (a), the
    Comptroller General shall submit a report to the Committees on
    Appropriations of the House of Representatives and the Senate, the
    Committee on Transportation and Infrastructure of the House of
    Representatives, and the Committee on Commerce, Science and
    Transportation of the Senate that assesses the impact of CAPPS2 on the
    issues listed in subsection (a) and on privacy and civil liberties. The
    report shall include any recommendations for practices, procedures,
    regulations, or legislation to eliminate or minimize adverse effect of
    CAPPS2 on privacy, discrimination, and other civil liberties.

    SEC. 608. REPORT ON PASSENGER PRESCREENING PROGRAM.

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

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

    [[Page 2570]]
    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 <> carrying out the amendments made by subsection (d), the Under
    Secretary for Border and Transportation Security of the Department of
    Homeland Security shall ensure that passenger and cargo pilots are
    treated equitably in receiving access to training as Federal flight deck
    officers.

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

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

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

    SEC. 611. FOREIGN REPAIR STATIONS.

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

    [[Page 2571]]
    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. <> The review shall be
    completed not later than 18 months after the date on which the Under
    Secretary issues regulations under subsection (f).

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

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

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

    [[Page 2572]]
    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 <> 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 <> 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 2573]]
    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 <> 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 2574]]
    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) <> Procedures.--
    (1) In general.--Not <> later
    than 60 days after the date of enactment of this Act, the
    Secretary of Homeland Security shall promulgate an interim final
    rule to implement section 44939 of title 49, United States Code,
    as amended by subsection (a).
    (2) Use of overseas facilities.--In order to implement
    section 44939 of title 49, United States Code, as amended by
    subsection (a), United States Embassies and Consulates that
    possess appropriate fingerprint collection equipment and
    personnel certified to capture fingerprints shall provide
    fingerprint services to aliens covered by that section if the
    Secretary requires fingerprints in the administration of that
    section, and shall transmit the fingerprints to the Secretary or
    other agency designated by the Secretary. The Attorney General
    and the Secretary of State shall cooperate with the Secretary of
    Homeland Security in carrying out this paragraph.
    (3) Use of united states facilities.--If the Secretary of
    Homeland Security requires fingerprinting in the administration
    of section 44939 of title 49, United States Code, the Secretary
    may designate locations within the United States that will
    provide fingerprinting services to individuals covered by that
    section.

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

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

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

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

    TITLE VII--AVIATION RESEARCH

    SEC. 701. AUTHORIZATION OF APPROPRIATIONS.

    Section 48102(a) is amended--

    [[Page 2575]]
    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 2576]]
    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. <> FEDERAL AVIATION ADMINISTRATION
    SCIENCE AND TECHNOLOGY SCHOLARSHIP PROGRAM.

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

    [[Page 2577]]
    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) <> The Administrator shall
    make publicly available a list of academic programs and fields of study
    for which scholarships under the Program may be utilized and shall
    update the list as necessary.

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

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

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

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

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

    [[Page 2578]]
    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) <> The Administrator shall by regulation
    provide for the partial or total waiver or suspension of any obligation
    of service or payment incurred by an individual under the Program (or a
    contractual agreement thereunder) whenever compliance by the individual
    is impossible or would involve extreme hardship to the individual, or if
    enforcement of such obligation with respect to the individual would be
    contrary to the best interests of the Government.

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

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

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

    [[Page 2579]]
    117 STAT. 2579

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

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

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

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

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

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

    [[Page 2580]]
    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) <> Except as provided in subparagraph (B),
    obligated service under paragraph (1) shall begin not later than 60 days
    after the individual obtains the educational degree for which the
    scholarship was provided.

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

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

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

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

    [[Page 2581]]
    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) <> There is authorized to
    be appropriated to the National Aeronautics and Space Administration for
    the Program $10,000,000 for each fiscal year.

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

    SEC. 704. <> RESEARCH PROGRAM TO IMPROVE
    AIRFIELD PAVEMENTS.

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

    SEC. 705. <> ENSURING APPROPRIATE STANDARDS
    FOR AIRFIELD PAVEMENTS.

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

    [[Page 2582]]
    117 STAT. 2582

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

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

    SEC. 707. RESEARCH ON AVIATION TRAINING.

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

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

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

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

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

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

    [[Page 2583]]
    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 2584]]
    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 <> 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. <> NEXT GENERATION AIR
    TRANSPORTATION SENIOR POLICY COMMITTEE.

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

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

    [[Page 2585]]
    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. <> ROTORCRAFT RESEARCH AND
    DEVELOPMENT INITIATIVE.

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

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

    [[Page 2586]]
    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 <> Secretary of
    Transportation shall appoint an independent governing board for
    the research program established under this subsection. The
    governing board shall be appointed from candidates nominated by
    national associations representing public airport operating
    agencies, airport executives, State aviation officials, and the
    scheduled airlines, and shall include representatives of
    appropriate Federal agencies. Section 14 of the Federal Advisory
    Committee Act shall not apply to the governing board.
    ``(3) Implementation.--The <> Secretary of
    Transportation shall enter into an arrangement with the National
    Academy of Sciences to provide staff support to the governing
    board established under paragraph (2) and to carry out projects
    proposed by the governing board that the Secretary considers
    appropriate.
    ``(4) Report.--Not <> later than 6 months
    after the expiration of the program under this subsection, the
    Secretary shall transmit to the Congress a report on the
    program, including recommendations as to the need for
    establishing a permanent airport cooperative research
    program.''.

    TITLE VIII--MISCELLANEOUS

    SEC. 801. DEFINITIONS.

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

    [[Page 2587]]
    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. <> REPORT ON AVIATION SAFETY REPORTING
    SYSTEM.

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

    SEC. 803. ANCHORAGE AIR TRAFFIC CONTROL.

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

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

    SEC. 804. EXTENSION OF METROPOLITAN WASHINGTON AIRPORTS AUTHORITY.

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

    SEC. 805. IMPROVEMENT OF AVIATION INFORMATION COLLECTION.

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

    [[Page 2588]]
    117 STAT. 2588

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

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

    SEC. 806. GOVERNMENT-FINANCED AIR TRANSPORTATION.

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

    SEC. 807. AIR CARRIER CITIZENSHIP.

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

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

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

    SEC. 809. AVAILABILITY OF AIRCRAFT ACCIDENT SITE INFORMATION.

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

    [[Page 2589]]
    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) <> An assurance that,
    in the case of an accident in which the National Transportation
    Safety Board conducts a public hearing or comparable proceeding
    at a location greater than 80 miles from the accident site, the
    air carrier will ensure that the proceeding is made available
    simultaneously by electronic means at a location open to the
    public at both the origin city and destination city of the air
    carrier's flight if that city is located in the United
    States.''.

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

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

    [[Page 2590]]
    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. <> Notice concerning aircraft
    assembly

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

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

    SEC. 811. TYPE CERTIFICATES.

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

    SEC. 812. <> RECIPROCAL AIRWORTHINESS
    CERTIFICATION.

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

    SEC. 813. INTERNATIONAL ROLE OF THE FAA.

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

    SEC. 814. FLIGHT ATTENDANT CERTIFICATION.

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

    ``Sec. 44728. Flight attendant certification

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

    [[Page 2591]]
    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) <> 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 2592]]
    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 <> amendments
    made by subsections (a) and (b) shall take effect on the 365th day
    following the date of enactment of this Act.

    SEC. 815. <> AIR QUALITY IN AIRCRAFT CABINS.

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

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

    SEC. 816. RECOMMENDATIONS CONCERNING TRAVEL AGENTS.

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

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

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

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

    [[Page 2593]]
    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 2594]]
    117 STAT. 2594

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

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

    SEC. 820. INTERNATIONAL AIR TRANSPORTATION.

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

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

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

    SEC. 822. CHARTER AIRLINES.

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

    [[Page 2595]]
    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. <> GENERAL AVIATION FLIGHTS AT
    RONALD REAGAN WASHINGTON NATIONAL AIRPORT.

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

    SEC. 824. <> REVIEW OF AIR CARRIER
    COMPENSATION.

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

    SEC. 825. NOISE CONTROL PLAN FOR CERTAIN AIRPORTS.

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

    [[Page 2596]]
    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. <> GAO REPORT ON AIRLINES' ACTIONS
    TO IMPROVE FINANCES AND ON EXECUTIVE COMPENSATION.

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

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

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

    SEC. 827. PRIVATE AIR CARRIAGE IN ALASKA.

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

    [[Page 2597]]
    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. <> REPORT ON WAIVERS OF PREFERENCE FOR BUYING
    GOODS PRODUCED IN THE UNITED STATES.

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

    SEC. 829. NAVIGATION FEES.

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

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

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

    SEC. 901. EXTENSION OF EXPENDITURE AUTHORITY.

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

    [[Page 2598]]
    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 <> is amended by adding at the end the
    following new subparagraph:
    ``(D) Special rule for amounts paid for domestic
    segments beginning after 2002.--If an amount is paid
    during a calendar year for a domestic segment beginning
    in a later calendar year, then the rate of tax under
    subsection (b) on such amount shall be the rate in
    effect for the calendar year in which such amount is
    paid.''.

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

    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.