[United States Statutes at Large, Volume 117, 108th Congress, 1st Session]
[From the U.S. Government Printing 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.

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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.