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[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2115 Engrossed Amendment Senate (EAS)]

  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  

                  In the Senate of the United States,

                                                         June 12, 2003.
    Resolved, That the bill from the House of Representatives (H.R. 
2115) entitled ``An Act to amend title 49, United States Code, to 
reauthorize programs for the Federal Aviation Administration, and for 
other purposes.'', do pass with the following

                               AMENDMENT:

            Strike out all after the enacting clause and insert:

SECTION 1. SHORT TITLE; AMENDMENT OF TITLE 49.

    (a) Short Title.--This Act may be cited as the ``Aviation 
Investment and Revitalization Vision Act''.
    (b) Amendment of Title 49.--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. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title; amendment of title 49.
Sec. 2. Table of contents.

               TITLE I--REAUTHORIZATIONS; FAA MANAGEMENT

Sec. 101. Airport improvement program.
Sec. 102. Airway facilities improvement program.
Sec. 103. FAA operations.
Sec. 104. Research, engineering, and development.
Sec. 105. Other programs.
Sec. 106. Reorganization of the Air Traffic Services Subcommittee.
Sec. 107. Clarification of responsibilities of chief operating officer.
Sec. 108. Whistle-blower protection under Acquisition Management 
                            System.

                     TITLE II--AIRPORT DEVELOPMENT

Sec. 201. National capacity projects.
Sec. 202. Categorical exclusions.
Sec. 203. Alternatives analysis.
Sec. 204. Increase in apportionment for, and flexibility of, noise 
                            compatibility planning programs.
Sec. 205. Secretary of Transportation to identify airport congestion-
                            relief projects.
Sec. 206. Design-build contracting.
Sec. 207. Special rule for airport in Illinois.
Sec. 208. Elimination of duplicative requirements.
Sec. 209. Streamlining the passenger facility fee program.
Sec. 210. Quarterly status reports.
Sec. 211. Noise disclosure.
Sec. 212. Prohibition on requiring airports to provide rent-free space 
                            for FAA or TSA.
Sec. 213. Special rules for fiscal year 2004.
Sec. 214. Agreements for operation of airport facilities.
Sec. 215. Public agencies.
Sec. 216. Flexible funding for nonprimary airport apportionments.
Sec. 217. Share of airport project costs.
Sec. 218. Pilot program for purchase of airport development rights.
Sec. 219. Gary/Chicago Airport funding.
Sec. 220. Civil penalty for closure of an airport without providing 
                            sufficient notice.
Sec. 221. Anchorage air traffic control.

                 TITLE III--AIRLINE SERVICE DEVELOPMENT

                    Subtitle A--Program Enhancements

Sec. 301. Delay reduction meetings.
Sec. 302. Small community air service development pilot program.
Sec. 303. DOT study of competition and access problems at large and 
                            medium hub airports.
Sec. 304. Competition disclosure requirement for large and medium hub 
                            airports.
Sec. 305. Location of shuttle service at Ronald Reagan Washington 
                            National Airport.
Sec. 306. Air carriers required to honor tickets for suspended service.

    Subtitle B--Small Community and Rural Air Service Revitalization

Sec. 351. Reauthorization of essential air service program.
Sec. 352. Incentive program.
Sec. 353. Pilot programs.
Sec. 354. EAS program authority changes.
Sec. 355. One-year extension of EAS eligibility for communities 
                            terminated in 2003 due to decreased air 
                            travel.

  Subtitle C--Financial Improvement Effort and Executive Compensation 
                                 Report

Sec. 371. GAO report on airlines actions to improve finances and on 
                            executive compensation.

                      TITLE IV--AVIATION SECURITY

Sec. 401. Study of effectiveness of transportation security system.
Sec. 402. Aviation security capital fund.
Sec. 403. Technical amendments related to security-related airport 
                            development.
Sec. 404. Armed forces charters.
Sec. 405. Arming cargo pilots against terrorism.
Sec. 406. General aviation and air charters.
Sec. 407. Air defense identification zone.
Sec. 408. Report on passenger prescreening program.
Sec. 409. Removal of cap on TSA staffing level.
Sec. 410. Foreign repair station safety and security.

                         TITLE V--MISCELLANEOUS

Sec. 501. Extension of war risk insurance authority.
Sec. 502. Cost-sharing of air traffic modernization projects.
Sec. 503. Counterfeit or fraudulently represented parts violations.
Sec. 504. Clarifications to procurement authority.
Sec. 505. Judicial review.
Sec. 506. Civil penalties.
Sec. 507. Miscellaneous amendments.
Sec. 508. Low-emission airport vehicles and infrastructure.
Sec. 509. Low-emission airport vehicles and ground support equipment.
Sec. 510. Pacific emergency diversion airport.
Sec. 511. Gulf of Mexico aviation service improvements.
Sec. 512. Air traffic control collegiate training initiative.
Sec. 513. Air transportation oversight system plan.
Sec. 514. National small community air service development Ombudsman.
Sec. 515. National commission on small community air service.
Sec. 516. Training certification for cabin crew.
Sec. 517. Aircraft manufacturer insurance.
Sec. 518. Ground-based precision navigational aids.
Sec. 519. Standby power efficiency program.
Sec. 520. Certain interim and final rules.
Sec. 521. Air fares for members of armed forces.
Sec. 522. Modification of requirements regarding training to operate 
                            aircraft.
Sec. 523. Exemption for Jackson Hole Airport.
Sec. 524. Distance requirement applicable to eligibility for essential 
                            air service subsidies.
Sec. 525. Reimbursement for losses incurred by general aviation 
                            entities.
Sec. 526. Recommendations concerning travel agents.
Sec. 527. Pass-through of refunded passenger security fees to code-
                            share partners.
Sec. 528. Air carrier citizenship.
Sec. 529. United States presence in global air cargo industry.

                   TITLE VI--SECOND CENTURY OF FLIGHT

Sec. 601. Findings.

        Subtitle A--The Office of Aerospace and Aviation Liaison

Sec. 621. Office of Aerospace and Aviation Liaison.
Sec. 622. National Air Traffic Management System Development Office.
Sec. 623. Report on certain market developments and government 
                            policies.
Sec. 624. Transfer of certain air traffic control functions prohibited.

                     Subtitle B--Technical Programs

Sec. 641. Aerospace and aviation safety workforce initiative.
Sec. 642. Scholarships for service.

         Subtitle C--FAA Research, Engineering, and Development

Sec. 661. Research program to improve airfield pavements.
Sec. 662. Ensuring appropriate standards for airfield pavements.
Sec. 663. Assessment of wake turbulence research and development 
                            program.
Sec. 664. Air quality in aircraft cabins.
Sec. 665. International role of the FAA.
Sec. 666. FAA report on other nations' safety and technological 
                            advancements.
Sec. 667. Development of analytical tools and certification methods.
Sec. 668. Pilot program to provide incentives for development of new 
                            technologies.
Sec. 669. FAA center for excellence for applied research and training 
                            in the use of advanced materials in 
                            transport aircraft.
Sec. 670. FAA certification of design organizations.
Sec. 671. Report on long term environmental improvements.

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

Sec. 701. Extension of expenditure authority.

               TITLE I--REAUTHORIZATIONS; FAA MANAGEMENT

SEC. 101. AIRPORT IMPROVEMENT PROGRAM.

    (a) Authorization of Appropriations.--Section 48103 is amended--
            (1) by inserting ``(a) In General.--'' before ``The'';
            (2) by striking ``and'' in paragraph (4);
            (3) by striking ``2003.'' in paragraph (5) and inserting 
        ``2003;'';
            (4) by inserting after paragraph (5) the following:
            ``(6) $3,400,000,000 for fiscal year 2004;
            ``(7) $3,500,000,000 for fiscal year 2005; and
            ``(8) $3,600,000,000 for fiscal year 2006.''; and
            (5) by adding at the end the following:
    ``(b) Administrative Expenses.--From the amounts authorized by 
paragraphs (6) through (8) of subsection (a), there shall be available 
for administrative expenses relating to the airport improvement 
program, passenger facility fee approval and oversight, national 
airport system planning, airport standards development and enforcement, 
airport certification, airport-related environmental activities 
(including legal service), to remain available until expended--
            ``(1) for fiscal year 2004, $69,737,000;
            ``(2) for fiscal year 2005, $71,816,000; and
            ``(3) for fiscal year 2006, $74,048,000.''.
    (b) Obligational Authority.--Section 47104(c) is amended by 
striking ``2003,'' and inserting ``2006,''.

SEC. 102. AIRWAY FACILITIES IMPROVEMENT PROGRAM.

    (a) In General.--Section 48101(a) is amended by adding at the end 
the following:
            ``(6) $2,916,000,000 for fiscal year 2004.
            ``(7) $2,971,000,000 for fiscal year 2005.
            ``(8) $3,030,000,000 for fiscal year 2006.''.
    (b) Biannual Reports.--Beginning 180 days after the date of 
enactment of 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.

SEC. 103. FAA OPERATIONS.

    (a) In General.--Section 106(k)(1) is amended--
            (1) by striking ``and'' in subparagraph (C);
            (2) by striking ``2003.'' in subparagraph (D) and inserting 
        ``2003;''; and
            (3) by adding at the end the following:
                    ``(E) $7,591,000,000 for fiscal year 2004;
                    ``(F) $7,732,000,000 for fiscal year 2005; and
                    ``(G) $7,889,000,000 for fiscal year 2006.''.
    (b) Annual Report.--Beginning with the submission of the Budget of 
the United States to the Congress for fiscal year 2004, the 
Administrator of the Federal Aviation Administration shall transmit a 
report to the Senate Committee on Commerce, Science, and Transportation 
and the House of Representatives Committee on Transportation and 
Infrastructure that describes the overall air traffic controller 
staffing plan, including strategies to address anticipated retirement 
and replacement of air traffic controllers.

SEC. 104. RESEARCH, ENGINEERING, AND DEVELOPMENT.

    (a) Amounts Authorized.--Section 48102(a) is amended--
            (1) by striking ``and'' at the end of paragraph (7);
            (2) by striking the period at the end of paragraph (8) and 
        inserting a semicolon; and
            (3) by adding at the end the following:
            ``(9) for fiscal year 2004, $289,000,000, including--
                    ``(A) $200,000,000 to improve aviation safety, 
                including icing, crashworthiness, and aging aircraft;
                    ``(B) $18,000,000 to improve the efficiency of the 
                air traffic control system;
                    ``(C) $27,000,000 to reduce the environmental 
                impact of aviation;
                    ``(D) $16,000,000 to improve the efficiency of 
                mission support; and
                    ``(E) $28,000,000 to improve the durability and 
                maintainability of advanced material structures in 
                transport airframe structures;
            ``(10) for fiscal year 2005, $304,000,000, including--
                    ``(A) $211,000,000 to improve aviation safety;
                    ``(B) $19,000,000 to improve the efficiency of the 
                air traffic control system;
                    ``(C) $28,000,000 to reduce the environmental 
                impact of aviation;
                    ``(D) $17,000,000 to improve the efficiency of 
                mission support; and
                    ``(E) $29,000,000 to improve the durability and 
                maintainability of advanced material structures in 
                transport airframe structures; and
            ``(11) for fiscal year 2006, $317,000,000, including--
                    ``(A) $220,000,000 to improve aviation safety;
                    ``(B) $20,000,000 to improve the efficiency of the 
                air traffic control system;
                    ``(C) $29,000,000 to reduce the environmental 
                impact of aviation;
                    ``(D) $18,000,000 to improve the efficiency of 
                mission support; and
                    ``(E) $30,000,000 to improve the durability and 
                maintainability of advanced material structures in 
                transport airframe structures.''.

SEC. 105. OTHER PROGRAMS.

    Section 106 of the Wendell H. Ford Aviation Investment and Reform 
Act for the 21st Century is amended--
            (1) by striking ``2003'' in subsection (a)(1)(A) and 
        subsection (c)(2) and inserting ``2006''; and
            (2) by striking ``2003,'' in subsection (a)(2) and 
        inserting ``2006,''.

SEC. 106. REORGANIZATION OF THE AIR TRAFFIC SERVICES SUBCOMMITTEE.

    (a) In General.--Section 106 is amended--
            (1) by redesignating subsections (q) and (r) as subsections 
        (r) and (s), respectively; and
            (2) by inserting after subsection (p) the following:
    ``(q) Air Traffic Management Committee.--
            ``(1) Establishment.--The Secretary of Transportation shall 
        establish an advisory committee which shall be known as the Air 
        Traffic Services Committee (in this subsection referred to as 
        the `Committee').
            ``(2) Membership.--
                    ``(A) Composition and appointment.--The Committee 
                shall be composed of--
                            ``(i) the Administrator of the Federal 
                        Aviation Administration, who shall serve as 
                        chair; and
                            ``(ii) 4 members, to be appointed by the 
                        Secretary, after consultation with the 
                        Committee on Transportation and Infrastructure 
                        of the House of Representatives, and the 
                        Committee on Commerce, Science, and 
                        Transportation of the Senate.
                    ``(B) No federal officer or employee.--No member 
                appointed under subparagraph (A)(ii) may serve as an 
                officer or employee of the United States Government 
                while serving as a member of the Committee.
                    ``(C) Eligibility.--Members appointed under 
                subparagraph (A)(ii) shall--
                            ``(i) have a fiduciary responsibility to 
                        represent the public interest;
                            ``(ii) be citizens of the United States; 
                        and
                            ``(iii) 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:
                                    ``(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.
                        At least one of such members should have a 
                        background in managing large organizations 
                        successfully. In the aggregate, such members 
                        should collectively bring to bear expertise in 
                        all of the areas described in subclauses (I) 
                        through (VI).
                    ``(D) Prohibitions on members of committee.--No 
                member appointed under subparagraph (A)(ii) may--
                            ``(i) have a pecuniary interest in, or own 
                        stock in or bonds of, an aviation or 
                        aeronautical enterprise, except an interest in 
                        a diversified mutual fund or an interest that 
                        is exempt from the application of section 208 
                        of title 18;
                            ``(ii) engage in another business related 
                        to aviation or aeronautics; or
                            ``(iii) be a member of any organization 
                        that engages, as a substantial part of its 
                        activities, in activities to influence 
                        aviation-related legislation.
                    ``(E) Claims against members.--
                            ``(i) In general.--A member appointed under 
                        subparagraph (A)(ii) shall have no personal 
                        liability under Federal law with respect to any 
                        claim arising out of or resulting from an act 
                        or omission by such member within the scope of 
                        service as a member of the Air Traffic Services 
                        Committee.
                            ``(ii) Effect on other law.--This 
                        subparagraph shall not be construed--
                                    ``(I) to affect any other immunity 
                                or protection that may be available to 
                                a member of the Committee under 
                                applicable law with respect to such 
                                transactions;
                                    ``(II) to affect any other right or 
                                remedy against the United States under 
                                applicable law; or
                                    ``(III) to limit or alter in any 
                                way the immunities that are available 
                                under applicable law for Federal 
                                officers and employees.
                    ``(F) Ethical considerations.--
                            ``(i) Financial disclosure.--During the 
                        entire period that an individual appointed 
                        under subparagraph (A)(ii) is a member of the 
                        Committee, such individual shall be treated as 
                        serving as an officer or employee referred to 
                        in section 101(f) of the Ethics in Government 
                        Act of 1978 for purposes of title I of such 
                        Act; except that section 101(d) of such Act 
                        shall apply without regard to the number of 
                        days of service in the position.
                            ``(ii) Restrictions on post-employment.--
                        For purposes of section 207(c) of title 18, an 
                        individual appointed under subparagraph (A)(ii) 
                        shall be treated as an employee referred to in 
                        section 207(c)(2)(A)(i) of such title during 
                        the entire period the individual is a member of 
                        the Committee; except that subsections 
                        (c)(2)(B) and (f) of section 207 of such title 
                        shall not apply.
                    ``(G) Terms for air traffic services committee 
                members.--A member appointed under subparagraph (A)(ii) 
                shall be appointed for a term of 5 years.
                    ``(H) Reappointment.--An individual may not be 
                appointed under subparagraph (A)(ii) to more than two 
                5-year terms.
                    ``(I) Vacancy.--Any vacancy on the Committee shall 
                be filled in the same manner as the original 
                appointment. Any member appointed to fill a vacancy 
                occurring before the expiration of the term for which 
                the member's predecessor was appointed shall be 
                appointed for the remainder of that term.
                    ``(J) Continuation in office.--A member whose term 
                expires shall continue to serve until the date on which 
                the member's successor takes office.
                    ``(K) Removal.--Any member appointed under 
                subparagraph (A)(ii) may be removed for cause by the 
                Secretary.
            ``(3) General responsibilities.--
                    ``(A) Oversight.--The Committee shall oversee the 
                administration, management, conduct, direction, and 
                supervision of the air traffic control system.
                    ``(B) Confidentiality.--The Committee shall ensure 
                that appropriate confidentiality is maintained in the 
                exercise of its duties.
            ``(4) Specific responsibilities.--The Committee shall have 
        the following specific responsibilities:
                    ``(A) Strategic plans.--To review, approve, and 
                monitor the strategic plan for the air traffic control 
                system, including the establishment of--
                            ``(i) a mission and objectives;
                            ``(ii) standards of performance relative to 
                        such mission and objectives, including safety, 
                        efficiency, and productivity; and
                            ``(iii) annual and long-range strategic 
                        plans.
                    ``(B) Modernization and improvement.--To review and 
                approve--
                            ``(i) methods to accelerate air traffic 
                        control modernization and improvements in 
                        aviation safety related to air traffic control; 
                        and
                            ``(ii) procurements of air traffic control 
                        equipment in excess of $100,000,000.
                    ``(C) Operational plans.--To review the operational 
                functions of the air traffic control system, 
                including--
                            ``(i) plans for modernization of the air 
                        traffic control system;
                            ``(ii) plans for increasing productivity or 
                        implementing cost-saving measures; and
                            ``(iii) plans for training and education.
                    ``(D) Management.--To--
                            ``(i) review and approve the 
                        Administrator's appointment of a Chief 
                        Operating Officer under section 106(s);
                            ``(ii) review the Administrator's 
                        selection, evaluation, and compensation of 
                        senior executives of the Administration who 
                        have program management responsibility over 
                        significant functions of the air traffic 
                        control system;
                            ``(iii) review and approve the 
                        Administrator's plans for any major 
                        reorganization of the Administration that would 
                        impact on the management of the air traffic 
                        control system;
                            ``(iv) review and approve the 
                        Administrator's cost accounting and financial 
                        management structure and technologies to help 
                        ensure efficient and cost-effective air traffic 
                        control operation; and
                            ``(v) review the performance and 
                        compensation of managers responsible for major 
                        acquisition projects, including the ability of 
                        the managers to meet schedule and budget 
                        targets.
                    ``(E) Budget.--To--
                            ``(i) review and approve the budget request 
                        of the Administration related to the air 
                        traffic control system prepared by the 
                        Administrator;
                            ``(ii) submit such budget request to the 
                        Secretary; and
                            ``(iii) ensure that the budget request 
                        supports the annual and long-range strategic 
                        plans.
            ``(5) Congressional review of pre-omb budget request.--The 
        Secretary shall submit the budget request referred to in 
        paragraph (4)(E)(ii) for any fiscal year to the President who 
        shall transmit such request, without revision, to the 
        Committees on Transportation and Infrastructure and 
        Appropriations of the House of Representatives and the 
        Committees on Commerce, Science, and Transportation and 
        Appropriations of the Senate, together with the President's 
        annual budget request for the Federal Aviation Administration 
        for such fiscal year.
            ``(6) Committee personnel matters.--
                    ``(A) Compensation of members.--Each member of the 
                Committee, other than the chair, shall be compensated 
                at a rate of $25,000 per year.
                    ``(B) Staff.--The chair of the Committee may 
                appoint and terminate any personnel that may be 
                necessary to enable the Committee to perform its 
                duties.
                    ``(C) Procurement of temporary and intermittent 
                services.--The chair of the Committee may procure 
                temporary and intermittent services under section 
                3109(b) of title 5, United States Code.
            ``(7) Administrative matters.--
                    ``(A) Powers of chair.--Except as otherwise 
                provided by a majority vote of the Committee, the 
                powers of the chair shall include--
                            ``(i) establishing subcommittees;
                            ``(ii) setting meeting places and times;
                            ``(iii) establishing meeting agendas; and
                            ``(iv) developing rules for the conduct of 
                        business.
                    ``(B) Meetings.--The Committee shall meet at least 
                quarterly and at such other times as the chair 
                determines appropriate.
                    ``(C) Quorum.--Three members of the Committee shall 
                constitute a quorum. A majority of members present and 
                voting shall be required for the Committee to take 
                action.
                    ``(D) Application of subsection (p) provisions.--
                The following provisions of subsection (p) apply to the 
                Committee to the same extent as they apply to the 
                Management Advisory Council:
                            ``(i) Paragraph (4)(C) (relating to access 
                        to documents and staff).
                            ``(ii) Paragraph (5) (relating to 
                        nonapplication of Federal Advisory Committee 
                        Act).
                            ``(iii) Paragraph (6)(G) (relating to 
                        travel and per diem).
                            ``(iv) Paragraph (6)(H) (relating to detail 
                        of personnel).
            ``(8) Annual report.--The Committee shall each year report 
        with respect to the conduct of its responsibilities under this 
        title to the Administrator, the Management Advisory Council, 
        the Committee on Transportation and Infrastructure of the House 
        of Representatives, and the Committee on Commerce, Science, and 
        Transportation of the Senate.''.
    (b) Conforming Amendments.--
            (1) Subsection (p) of section 106 is amended--
                    (A) by striking ``18'' in paragraph (2) and 
                inserting ``13'';
                    (B) by inserting ``and'' after the semicolon in 
                subparagraph (C) of paragraph (2);
                    (C) by striking ``Transportation; and'' in 
                subparagraph (D) of paragraph (2) and inserting 
                ``Transportation.'';
                    (D) by striking subparagraph (E) of paragraph (2);
                    (E) by striking paragraph (3) and inserting the 
                following:
            ``(3) No federal officer or employee.--No member appointed 
        under paragraph (2)(C) may serve as an officer or employee of 
        the United States Government while serving as a member of the 
        Council.'';
                    (F) by striking subparagraphs (C), (D), (H), and 
                (I) of paragraph (6) and redesignating subparagraphs 
                (E), (F), (G), (J), (K), and (L) as subparagraphs (C), 
                (D), (E), (F), (G), and (H), respectively; and
                    (G) by striking paragraphs (7) and (8).
            (2) Section 106(s) (as redesignated by subsection (a) of 
        this section) is amended--
                    (A) by striking ``Air Traffic Services Subcommittee 
                of the Aviation Management Advisory Council.'' and 
                inserting ``Air Traffic Services Committee.'' in 
                paragraphs (1)(A) and (2)(A); and
                    (B) by striking ``Air Traffic Services Subcommittee 
                of the Aviation Management Advisory Council,'' and 
                inserting ``Air Traffic Services Committee,'' in 
                paragraph (3).
            (3) Section 106 is amended by adding at the end the 
        following:
    ``(t) Air Traffic Control System Defined.--In this section, the 
term `air traffic control system' has the meaning such term has under 
section 40102(a).''.
    (c) Transition From Air Traffic Service Subcommittee to Air Traffic 
Service Committee.--
            (1) Termination of management advisory council 
        membership.--Effective on the day after the date of enactment 
        of this Act, any member of the Management Advisory Council 
        appointed under section 106(p)(2)(E) of title 49, United States 
        Code, (as such section was in effect on the day before such 
        date of enactment) who is a member of the Council on such date 
        of enactment shall cease to be a member of the Council.
            (2) Commencement of membership on air traffic services 
        committee.--Effective on the day after the date of enactment of 
        this Act, any member of the Management Advisory Council whose 
        membership is terminated by paragraph (1) shall become a member 
        of the Air Traffic Services Committee as provided by section 
        106(q)(2)(G) of title 49, United States Code, to serve for the 
        remainder of the term to which that member was appointed to the 
        Council.

SEC. 107. CLARIFICATION OF RESPONSIBILITIES OF CHIEF OPERATING OFFICER.

    Section 106(s) (as redesignated by section 106(a)(1) of this Act) 
is amended--
            (1) by striking ``Transportation and Congress'' in 
        paragraph (4) 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,'';
            (2) by striking ``develop a strategic plan of the 
        Administration for the air traffic control system, including 
        the establishment of--'' in paragraph (5)(A) and inserting 
        ``implement the strategic plan of the Administration for the 
        air traffic control system in order to further--'';
            (3) by striking ``To review the operational functions of 
        the Administration,'' in paragraph (5)(B) and inserting ``To 
        oversee the day-to-day operational functions of the 
        Administration for air traffic control,'';
            (4) by striking ``system prepared by the Administrator;'' 
        in paragraph (5)(C)(i) and inserting ``system;'';
            (5) by striking ``Administrator and the Secretary of 
        Transportation;'' in paragraph (5)(C)(ii) and inserting 
        ``Administrator;''; and
            (6) by striking paragraph (5)(C)(iii) and inserting the 
        following:
                            ``(iii) ensure that the budget request 
                        supports the agency's annual and long-range 
                        strategic plans for air traffic control 
                        services.''.

SEC. 108. WHISTLE-BLOWER 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.''.

                     TITLE II--AIRPORT DEVELOPMENT

SEC. 201. NATIONAL CAPACITY PROJECTS.

    (a) In General.--Part B of subtitle VII is amended by adding at the 
end the following:

               ``CHAPTER 477. NATIONAL CAPACITY PROJECTS

``47701. Capacity enhancement.
``47702. Designation of national capacity projects.
``47703. Expedited coordinated environmental review process; project 
                            coordinators and environment impact teams.
``47704. Compatible land use initiative for national capacity projects.
``47705. Air traffic procedures at national capacity projects.
``47706. Pilot program for environmental review at national capacity 
                            projects.
``47707. Definitions.
``Sec. 47701. Capacity enhancement
    ``(a) In General.--Within 30 days after the date of enactment of 
the Aviation Investment and Revitalization Vision Act, the Secretary of 
Transportation shall identify those airports among the 31 airports 
covered by the Federal Aviation Administration's Airport Capacity 
Benchmark Report 2001 with delays that significantly affect the 
national air transportation system.
    ``(b) Task Force; Capacity Enhancement Study.--
            ``(1) In general.--The Secretary shall direct any airport 
        identified by the Secretary under subsection (a) that is not 
        engaged in a runway expansion process and has not initiated a 
        capacity enhancement study (or similar capacity assessment) 
        since 1996--
                    ``(A) to establish a delay reduction task force to 
                study means of increasing capacity at the airport, 
                including air traffic, airline scheduling, and airfield 
                expansion alternatives; or
                    ``(B) to conduct a capacity enhancement study.
            ``(2) Scope.--The scope of the study shall be determined by 
        the airport and the Federal Aviation Administration, and where 
        appropriate shall consider regional capacity solutions.
            ``(3) Recommendations submitted to secretary.--
                    ``(A) Task force.--A task force established under 
                this subsection shall submit a report containing its 
                findings and conclusions, together with any 
                recommendations for capacity enhancement at the 
                airport, to the Secretary within 9 months after the 
                task force is established.
                    ``(B) CES.--A capacity enhancement study conducted 
                under this subsection shall be submitted, together with 
                its findings and conclusions, to the Secretary as soon 
                as the study is completed.
    ``(c) Runway Expansion and Reconfiguration.--If the report or study 
submitted under subsection (b)(3) includes a recommendation for the 
construction or reconfiguration of runways at the airport, then the 
Secretary and the airport shall complete the planning and environmental 
review process within 5 years after report or study is submitted to the 
Secretary. The Secretary may extend the 5-year deadline under this 
subsection for up to 1 year if the Secretary determines that such an 
extension is necessary and in the public interest. The Secretary shall 
notify the Senate Committee on Commerce, Science, and Transportation, 
and to the House of Representatives Committee on Transportation and 
Infrastructure of any such extension.
    ``(d) Airports That Decline To Undertake Expansion Projects.--
            ``(1) In general.--If an airport at which the construction 
        or reconfiguration of runways is recommended does not take 
        action to initiate a planning and environmental assessment 
        process for the construction or reconfiguration of those 
        runways within 30 days after the date on which the report or 
        study is submitted to the Secretary, then--
                    ``(A) the airport shall be ineligible for planning 
                and other expansion funds under subchapter I of chapter 
                471, notwithstanding any provision of that subchapter 
                to the contrary; and
                    ``(B) no passenger facility fee may be approved at 
                that airport during the 5-year period beginning 30 days 
                after the date on which the report or study is 
                submitted to the Secretary, for--
                            ``(i) projects that, but for subparagraph 
                        (A), could have been funded under chapter 471; 
                        or
                            ``(ii) any project other than on-airport 
                        airfield-side capacity or safety-related 
                        projects.
            ``(2) Safety-related and environmental projects excepted.--
        Paragraph (1) does not apply to the use of funds for safety-
        related, security, or environment projects.
    ``(e) Airports That Take Action.--The Secretary shall take all 
actions possible to expedite funding and provide options for funding to 
any airport undertaking runway construction or reconfiguration projects 
in response to recommendations by its task force.
``Sec. 47702. Designation of national capacity projects
    ``(a) In General.--In response to a petition from an airport 
sponsor, or in the case of an airport on the list of airports covered 
by the Federal Aviation Administration's Airport Capacity Benchmarks 
study, the Secretary of Transportation may designate an airport 
development project as a national capacity project if the Secretary 
determines that the project to be designated will significantly enhance 
the capacity of the national air transportation system.
    ``(b) Designation To Remain in Effect for 5 Years.--The designation 
of a project as a national capacity project under paragraph (1) shall 
remain in effect for 5 years. The Secretary may extend the 5-year 
period for up to 2 additional years upon request if the Secretary finds 
that substantial progress is being made toward completion of the 
project.
``Sec. 47703. Expedited coordinated environmental review process; 
              project coordinators and environment impact teams
    ``(a) In General.--The Secretary of Transportation shall implement 
an expedited coordinated environmental review process for national 
capacity 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 for an expedited and coordinated process in 
        the conduct of environmental reviews that ensures that, where 
        appropriate, the reviews are done concurrently and not 
        consecutively; and
            ``(3) provides for a date certain for completing all 
        environmental reviews.
    ``(b) High Priority for Airport Environmental Reviews.--Each 
department and agency of the United States Government with jurisdiction 
over environmental reviews shall accord any such review involving a 
national capacity project the highest possible priority and conduct the 
review expeditiously. If the Secretary finds that any such department 
or agency is not complying with the requirements of this subsection, 
the Secretary shall notify the Senate Committee on Commerce, Science, 
and Transportation, and to the House of Representatives Committee on 
Transportation and Infrastructure immediately.
    ``(c) Project Coordinators; EIS Teams.--
            ``(1) Designation.--For each project designated by the 
        Secretary as a national capacity project under subsection (a) 
        for which an environmental impact statement or environmental 
        assessment must be filed, the Secretary shall--
                    ``(A) designate a project coordinator within the 
                Department of Transportation; and
                    ``(B) establish an environmental impact team within 
                the Department.
            ``(2) Function.--The project coordinator and the 
        environmental impact team shall--
                    ``(A) coordinate the activities of all Federal, 
                State, and local agencies involved in the project;
                    ``(B) to the extent possible, working with Federal, 
                State and local officials, reduce and eliminate 
                duplicative and overlapping Federal, State, and local 
                permit requirements;
                    ``(C) to the extent possible, eliminate duplicate 
                Federal, State, and local environmental review 
                procedures; and
                    ``(D) provide direction for compliance with all 
                applicable Federal, State, and local environmental 
                requirements for the project.
``Sec. 47704. Compatible land use initiative for national capacity 
              projects
    ``(a) In General.--The Secretary of Transportation may make grants 
under chapter 471 to States and units of local government for land use 
compatibility plans directly related to national capacity projects for 
the purposes of making the use of land areas around the airport 
compatible with aircraft operations if the land use plan or project 
meets the requirements of this section.
    ``(b) Conditions.--A land use plan or project meets the 
requirements of this section if it--
            ``(1) is sponsored by the public agency that has the 
        authority to plan and adopt land use control measures, 
        including zoning, in the planning area in and around the 
        airport and that agency provides written assurances to the 
        Secretary that it will work with the affected airport to 
        identify and adopt such measures;
            ``(2) does not duplicate, and is not inconsistent with, an 
        airport noise compatibility program prepared by an airport 
        owner or operator under chapter 475 or with other planning 
        carried out by the airport;
            ``(3) is subject to an agreement between the public agency 
        sponsor and the airport owner or operator that the development 
        of the land use compatibility plan will be done cooperatively;
            ``(4) is consistent with the airport operation and 
        planning, including the use of any noise exposure contours on 
        which the land use compatibility planning or project is based; 
        and
            ``(5) has been approved jointly by the airport owner or 
        operator and the public agency sponsor.
    ``(c) Assurances From Sponsors.--The Secretary may require the 
airport sponsor, public agency, or other entity to which a grant may be 
awarded under this section to provide such additional assurances, 
progress reports, and other information as the Secretary determines to 
be necessary to carry out this section.
``Sec. 47705. Air traffic procedures at national capacity projects
    ``(a) In General.--The Secretary of Transportation may consider 
prescribing flight procedures to avoid or minimize potentially 
significant adverse noise impacts of the project during the 
environmental planning process for a national capacity project that 
involves the construction of new runways or the reconfiguration of 
existing runways. If the Secretary determines that noise mitigation 
flight procedures are consistent with safe and efficient use of the 
navigable airspace, then, at the request of the airport sponsor, the 
Administrator may, in a manner consistent with applicable Federal law, 
commit to prescribing such procedures in any record of decision 
approving the project.
    ``(b) Modification.--Notwithstanding any commitment by the 
Secretary under subsection (a), the Secretary may initiate changes to 
such procedures if necessary to maintain safety and efficiency in light 
of new information or changed circumstances.
``Sec. 47706. Pilot program for environmental review at national 
              capacity projects
    ``(a) In General.--The Secretary of Transportation shall initiate a 
5-year pilot program funded by airport sponsors--
            ``(1) to hire additional fulltime-equivalent environmental 
        specialists and attorneys, or
            ``(2) to obtain the services of such specialists and 
        attorneys from outside the United States Government, to assist 
        in the provision of an appropriate nationwide level of staffing 
        for planning and environmental review of runway development 
        projects for national capacity projects at the Federal Aviation 
        Administration.
    ``(b) Eligible Participants.--Participation in the pilot program 
shall be available, on a voluntary basis, to airports with an annual 
passenger enplanement of not less than 3 million passengers. The 
Secretary shall specify the minimum contribution necessary to qualify 
for participation in the pilot program, which shall be not less than 
the amount necessary to compensate the Department of Transportation for 
the expense of a fulltime equivalent environmental specialist and 
attorney qualified at the GS-14 equivalent level.
    ``(c) Retention of Revenues.--The salaries and expenses account of 
the Federal Aviation Administration shall retain as an offsetting 
collection such sums as may be necessary from such proceeds for the 
costs of developing and implementing the program required by subsection 
(a). Such offsetting collections shall be available for obligation 
subject to the terms and conditions of the receiving appropriations 
account, and shall be deposited in such accounts on a quarterly basis. 
Such offsetting collections are authorized to remain available until 
expended for such purpose.
``Sec. 47707. Definitions
    ``In this chapter:
            ``(1) National capacity project.--The term `national 
        capacity project' means a project designated by the Secretary 
        under section 44702.
            ``(2) Other terms.--The definitions in section 47102 apply 
        to any terms used in this chapter that are defined in that 
        section.''.
    (b) Additional Staff Authorized.--The Secretary of Transportation 
is authorized to hire additional environmental specialists and 
attorneys needed to process environmental impact statements in 
connection with airport construction projects and to serve as project 
coordinators and environmental impact team members under section 47703 
of title 49, United States Code.
    (c) Clerical Amendment.--The analysis for subtitle VII is amended 
by inserting after the item relating to section 475 the following:

``477. National capacity projects..............................47701''.

SEC. 202. CATEGORICAL EXCLUSIONS.

    Not later than 30 days after the date of enactment of this Act, the 
Secretary of Transportation shall report to the Senate Committee on 
Commerce, Science, and Transportation on the categorical exclusions 
currently recognized and provide a list of proposed additional 
categorical exclusions from the requirement that an environmental 
assessment or an environmental impact statement be prepared under the 
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) for 
projects at airports. In determining the list of additional proposed 
categorical exclusions, the Secretary shall include such other projects 
as the Secretary determines should be categorically excluded in order 
to ensure that Department of Transportation environmental staff 
resources are not diverted to lower priority tasks and are available to 
expedite the environmental reviews of airport capacity enhancement 
projects at congested airports.

SEC. 203. ALTERNATIVES ANALYSIS.

    (a) Notice Requirement.--Not later than 30 days after the date on 
which the Secretary of Transportation identifies an airport capacity 
enhancement project at a congested airport under section 47171(c) of 
title 49, United States Code, the Secretary shall publish a notice in 
the Federal Register requesting comments on whether reasonable 
alternatives exist to the project.
    (b) Certain Reasonable Alternatives Defined.--For purposes of this 
section, an alternative shall be considered reasonable if--
            (1) the alternative does not create an unreasonable burden 
        on interstate commerce, the national aviation system, or the 
        navigable airspace;
            (2) the alternative is not inconsistent with maintaining 
        the safe and efficient use of the navigable airspace;
            (3) the alternative does not conflict with a law or 
        regulation of the United States;
            (4) the alternative would result in at least the same 
        reduction in congestion at the airport or in the national 
        aviation system as the proposed project; and
            (5) in any case in which the alternative is a proposed 
        construction project at an airport other than a congested 
        airport, firm commitments to provide such alternate airport 
        capacity exists, and the Secretary determines that such 
        alternate airport capacity will be available no later than 4 
        years after the date of the Secretary's determination under 
        this section.
    (c) Comment Period.--The Secretary shall provide a period of 60 
days for comments on a project identified by the Secretary under this 
section after the date of publication of notice with respect to the 
project.
    (d) Determination of Existence of Reasonable Alternatives.--Not 
later than 90 days after the last day of a comment period established 
under subsection (c) for a project, the Secretary shall determine 
whether reasonable alternatives exist to the project. The determination 
shall be binding on all persons, including Federal and State agencies, 
acting under or applying Federal laws when considering the availability 
of alternatives to the project.
    (e) Limitation on Applicability.--This section does not apply to--
            (1) any alternatives analysis required under the National 
        Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.); or
            (2) a project at an airport if the airport sponsor 
        requests, in writing, to the Secretary that this section not 
        apply to the project.

SEC. 204. INCREASE IN APPORTIONMENT FOR, AND FLEXIBILITY OF, NOISE 
              COMPATIBILITY PLANNING PROGRAMS.

    Section 47117(e)(1)(A) is amended--
            (1) by striking the first sentence and inserting: ``At 
        least 35 percent for grants for airport noise compatibility 
        planning under section 47505(a)(2) for a national capacity 
        project, for carrying out noise compatibility programs under 
        section 47504(c) of this title, and for noise mitigation 
        projects approved in an environmental record of decision for an 
        airport development project designated as a national capacity 
        project under section 47702.''; and
            (2) by striking ``or not such 34 percent requirement'' in 
        the second sentence and inserting ``the funding level required 
        by the preceding sentence''.

SEC. 205. SECRETARY OF TRANSPORTATION TO IDENTIFY AIRPORT CONGESTION-
              RELIEF PROJECTS.

    (a) In General.--Within 90 days after the date of enactment of this 
Act, the Secretary of Transportation shall provide to the Senate 
Committee on Commerce, Science, and Transportation, and to the House of 
Representatives Committee on Transportation and Infrastructure--
            (1) a list of planned air traffic and airport-capacity 
        projects at congested airport capacity benchmark airports the 
        completion of which will substantially relieve congestion at 
        those airports; and
            (2) a list of options for expanding capacity at the 8 
        airports on the list at which the most severe delays are 
        occurring.
    (b) 2-year Update.--The Secretary shall provide updated lists under 
subsection (a) to the Committees 2 years after the date of enactment of 
this Act.
    (c) Delisting of Projects.--The Secretary shall remove a project 
from the list provided to the Committees under this section upon the 
request, in writing, of an airport operator if the operator states in 
the request that construction of the project will not be completed 
within 10 years from the date of the request.

SEC. 206. DESIGN-BUILD CONTRACTING.

    (a) In General.--Subchapter I of chapter 471 is amended by adding 
at the end the following:
``Sec. 47138. Design-build contracting
    ``(a) In General.--The Administrator 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 three 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 471, 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 chapter analysis for chapter 471 is 
amended by inserting after the item relating to section 47137 the 
following:

``47138. Design-build contracting.''.

SEC. 207. 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.

SEC. 208. ELIMINATION OF DUPLICATIVE REQUIREMENTS.

    (a) In General.--Section 47106(c)(1) is amended--
            (1) by inserting ``and'' after ``project;'' in subparagraph 
        (A)(ii);
            (2) by striking subparagraph (B); and
            (3) by redesignating subparagraph (C) as subparagraph (B).
    (b) Conforming Amendments.--Section 47106(c) of such title is 
amended--
            (1) by striking paragraph (4);
            (2) by redesignating paragraph (5) as paragraph (4); and
            (3) by striking ``(1)(C)'' in paragraph (4), as 
        redesignated, and inserting ``(1)(B)''.

SEC. 209. STREAMLINING THE PASSENGER FACILITY FEE PROGRAM.

    Section 40117 is amended--
            (1) by striking from ``finds--'' in paragraph (4) of 
        subsection (b) through the end of that paragraph and inserting 
        ``finds that the project cannot be paid for from funds 
        reasonably expected to be available for the programs referred 
        to in section 48103.'';
            (2) by adding at the end of subsection (c)(2) the 
        following:
                    ``(E) The agency will include in its application or 
                notice submitted under subsection (1) 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 consultation to an air 
                carrier and foreign air carrier is deemed to have 
                satisfied this requirement if it limits such notices 
                and consultations to air carriers and foreign air 
                carriers that have a significant business interest on 
                the airport. In developing regulations to implement 
                this provision, the Secretary shall consider a 
                significant business interest to be defined as an air 
                carrier or foreign air carrier that has no less than 
                1.0 percent of boardings at the airport in the prior 
                calendar year, except that no air carrier or foreign 
                air carrier may be considered excluded under this 
                section if it has at least 25,000 boardings at the 
                airport in the prior calendar year, or if it operates 
                scheduled service, without regard to such percentage 
                requirements.'';
            (3) by redesignating paragraph (3) of subsection (c) as 
        paragraph (4) and inserting after paragraph (2) the following:
            ``(3) Before submitting an application, the eligible agency 
        must provide reasonable notice and an opportunity for public 
        comment. The Secretary shall prescribe regulations that define 
        reasonable notice and provide for at least--
                    ``(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 who may be affected, including--
                            ``(i) publication in local newspapers of 
                        general circulation;
                            ``(ii) publication in other local media; 
                        and
                            ``(iii) posting the notice on the agency's 
                        website;
                    ``(B) a requirement for submission of public 
                comments no sooner than 30 days after publishing of the 
                notice and not later than 45 days after publication; 
                and
                    ``(C) a requirement that the agency include in its 
                application or notice submitted under paragraph (1) 
                copies of all comments received under subparagraph 
                (B).'';
            (4) by striking ``shall'' in the first sentence of 
        paragraph (4), as redesignated, of subsection (c) and inserting 
        ``may''; and
            (5) by adding at the end the following:
    ``(l) Pilot Program for Passenger Facility Fee Authorizations at 
Small Airports.--
            ``(1) There is established a pilot program for the 
        Secretary to test alternative procedures for authorizing small 
        airports to impose passenger facility fees. An eligible agency 
        may impose a passenger facility fee at a nonhub airport (as 
        defined in section 41762(11) of this title) that it controls 
        for use on eligible airport-related projects at that airport, 
        in accordance with the provisions of this subsection. These 
        procedures shall be in lieu of the procedures otherwise 
        specified in this section.
            ``(2) 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) The eligible agency must submit to the Secretary a 
        notice of intention to impose a passenger facility fee, which 
        notice shall include--
                    ``(A) information that the Secretary may require by 
                regulation on each project for which authority to 
                impose a passenger facility charge is sought;
                    ``(B) the amount of revenue from passenger facility 
                charges that is proposed to be collected for each 
                project; and
                    ``(C) the level of the passenger facility charge 
                that is proposed.
            ``(4) The Secretary shall acknowledge receipt of the notice 
        and indicate any objection to the imposition of a passenger 
        facility fee for any project identified in the notice within 30 
        days after receipt of the eligible agency's notice.
            ``(5) 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.
            ``(6) 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) The authority granted under this subsection shall 
        expire three years after the issuance of the regulation 
        required by paragraph (6).
            ``(8) An acknowledgement issued under paragraph (4) shall 
        not be considered an order of the Secretary issued under 
        section 46110 of this title.''.

SEC. 210. QUARTERLY STATUS REPORTS.

    Beginning with the second calendar quarter ending after the date of 
enactment of this Act, the Secretary of Transportation shall provide 
quarterly status reports to the Senate Committee on Commerce, Science, 
and Transportation and the House of Representatives Committee on 
Transportation and Infrastructure on the status of construction of each 
major runway project undertaken at the largest 40 commercial airports 
in terms of annual enplanements.

SEC. 211. 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 Federal 
Aviation Administration shall make copies or facsimiles of 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. 212. PROHIBITION ON REQUIRING AIRPORTS TO PROVIDE RENT-FREE SPACE 
              FOR FAA OR TSA.

    (a) In General.--Chapter 401 is amended by adding at the end the 
following:
``Sec. 40129. Prohibition on rent-free space requirements for FAA or 
              TSA
    ``(a) In General.--Neither the Secretary of Transportation nor the 
Secretary of Homeland Security may require airport sponsors to provide 
building construction, maintenance, utilities and expenses, or space in 
airport sponsor-owned buildings to the Federal Aviation Administration 
or the Transportation Security Administration without cost for services 
relating to air traffic control, air navigation, aviation security, or 
weather reporting.
    ``(b) Negotiated Agreements.--Subsection (a) does not prohibit--
            ``(1) the negotiation of agreements between either 
        Secretary and an airport sponsor to provide building 
        construction, maintenance, utilities and expenses, or space in 
        airport sponsor-owned buildings to the Federal Aviation 
        Administration or the Transportation Security Administration 
        without cost or at below-market rates; or
            ``(2) either Secretary from requiring airport sponsors to 
        provide land without cost to the Federal Aviation 
        Administration for air traffic control facilities or space 
        without cost to the Transportation Security Administration for 
        necessary security checkpoints.''.
    (b) Conforming Amendment.--The chapter analysis for chapter 401 is 
amended by adding at the end the following:

``40129. Prohibition on rent-free space requirements for FAA or TSA.''.

SEC. 213. SPECIAL RULES FOR FISCAL YEAR 2004.

    (a) Apportionment to Certain Airports With Declining Boardings.--
            (1) In general.--For fiscal year 2004, the Secretary of 
        Transportation may apportion funds under section 47114 of title 
        49, United States Code, to the sponsor of an airport described 
        in paragraph (2) in an amount equal to the amount apportioned 
        to that airport under that section for fiscal year 2002, 
        notwithstanding any provision of section 47114 to the contrary.
            (2) Airports to which paragraph (1) applies.--Paragraph (1) 
        applies to any airport determined by the Secretary to have 
        had--
                    (A) less than 0.05 percent of the total United 
                States passenger boardings (as defined in section 
                47102(10) of title 49, United States Code) for the 
                calendar year used for determining apportionments under 
                section 47114 for fiscal year 2004;
                    (B) less than 10,000 passenger boardings in 
                calendar year 2002; and
                    (C) 10,000 or more passenger boardings in calendar 
                year 2000.
    (b) 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 fiscal year 2004 under chapter 471 of that title for a project 
described in paragraph (2) or (3) of that section shall be 95 percent.

SEC. 214. AGREEMENTS FOR OPERATION OF AIRPORT FACILITIES.

    Section 47124 is amended--
            (1) by inserting ``a qualified entity or'' after ``with'' 
        in subsection (a);
            (2) by inserting ``entity or '' after ``allow the'' in 
        subsection (a);
            (3) by inserting ``entity or'' before ``State'' the last 
        place it appears in subsection (a);
            (4) by striking ``contract,'' in subsection (b)(2) and 
        inserting ``contract with a qualified entity, or'';
            (5) by striking ``the State'' each place it appears in 
        subsection (b)(2) and inserting ``the entity or State'';
            (6) by striking ``pilot'' in the caption of subsection 
        (b)(3);
            (7) by striking ``pilot'' in subsection (b)(3)(A);
            (8) by striking ``pilot'' in subsection (b)(3)(D);
            (9) by striking ``$6,000,000 per fiscal year'' in 
        subsection (b)(3)(E) and inserting ``$6,500,000 for fiscal 
        2004, $7,000,000 for fiscal year 2005, and $7,500,000 for 
        fiscal year 2006''; and
            (10) by striking ``$1,100,000.'' in subsection (b)(4)(C) 
        and inserting ``$1,500,000.''.

SEC. 215. PUBLIC AGENCIES.

    Section 47102(15) is amended--
            (1) by striking ``or'' after the semicolon in subparagraph 
        (B);
            (2) by redesignating subparagraph (C) as subparagraph (D); 
        and
            (3) by inserting after subparagraph (B) the following:
                    ``(C) the Department of the Interior with respect 
                to an airport owned by the Department that is required 
                to be maintained for commercial aviation safety at a 
                remote location; or''.

SEC. 216. FLEXIBLE FUNDING FOR NONPRIMARY AIRPORT APPORTIONMENTS.

    (a) In General.--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)(2)(A) of this 
        title 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.''.
    (b) Conforming Amendments.--
            (1) Section 47108(a) is amended by inserting ``or section 
        47114(d)(2)(A)'' after ``under section 47114(c)''.
            (2) Section 47110 is amended--
                    (A) by inserting ``or section 47114(d)(2)(A)'' in 
                subsection (b)(2)(C) after ``of section 47114(c)'';
                    (B) by inserting ``or section 47114(d)(2)(A)'' in 
                subsection (g) after ``of section 47114(c)'';
                    (C) by striking ``of project.'' in subsection (g) 
                and inserting ``of the project.''; and
                    (D) 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 and for which the Government's share is paid only 
with funds apportioned to a sponsor under section 47114(d)(3)(A), if 
the Secretary determines that the sponsor has made adequate provision 
for financing airside needs of the airport.''.
            (3) Section 47119(b) is amended by--
                    (A) striking ``or'' after the semicolon in 
                paragraph (3);
                    (B) striking ``1970.'' in paragraph (4) and 
                inserting ``1970; or''; and
                    (C) adding at the end the following:
            ``(5) to a sponsor of a nonprimary airport referred to in 
        subparagraph (A) or (B) paragraph (2), any part of amounts 
        apportioned to the sponsor for the fiscal year under section 
        47114(d)(3)(A) of this title for project costs allowable under 
        section 47110(d) of this title.''.
    (c) Apportionment for All-Cargo Airports.--Section 47114(c)(2)(A) 
is amended by striking ``3'' and inserting ``3.5''.
    (d) Considerations for Cargo Operations.--Section 47115(d) is 
amended--
            (1) by striking ``and'' at the end of paragraph (5);
            (2) by striking the period at the end of paragraph (6) and 
        inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(7) the ability of the project to foster United States 
        competitiveness in securing global air cargo activity at a 
        United States airport.''.
    (e) Terminal Development Costs.--Section 47119(a)(1)(C) is amended 
by striking ``3 years'' and inserting ``1 year''.

SEC. 217. SHARE OF AIRPORT PROJECT COSTS.

    (a) In General.--Section 47109 of title 49, United States Code, is 
amended by redesignating subsection (c) as subsection (d) and inserting 
after subsection (b) the following:
    ``(c) Grandfather Rule.--
            ``(1) In general.--In the case of any project approved 
        after September 30, 2001, at an airport that has less than .25 
        percent of the total number of passenger boardings at all 
        commercial service airports, and 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, title 
49, United States Code, is amended by striking ``Except as provided in 
subsection (b)'', and inserting in lieu thereof ``Except as provided in 
subsection (b) or subsection (c)''.

SEC. 218. PILOT PROGRAM FOR PURCHASE OF AIRPORT DEVELOPMENT RIGHTS.

    (a) In General.--Chapter 471 is amended by adding at the end the 
following:
``Sec. 47141. Pilot program for purchase of airport development rights
    ``(a) In General.--The Secretary of Transportation shall establish 
a pilot program to support the purchase, by a State or political 
subdivision of a State, of development rights associated with, or 
directly affecting the use of, privately owned public use airports 
located in that State. Under the program, the Secretary may make a 
grant to a State or political subdivision of a State from funds 
apportioned under section 47114 for the purchase of such rights.
    ``(b) Grant Requirements.--
            ``(1) In general.--The Secretary may not make a grant under 
        subsection (a) unless the grant is made--
                    ``(A) to enable the State or political subdivision 
                to purchase development rights in order to ensure that 
                the airport property will continue to be available for 
                use as a public airport; and
                    ``(B) subject to a requirement that the State or 
                political subdivision acquire an easement or other 
                appropriate covenant requiring that the airport shall 
                remain a public use airport in perpetuity.
            ``(2) Matching requirement.--The amount of a grant under 
        the program may not exceed 90 percent of the costs of acquiring 
        the development rights.
    ``(c) Grant Standards.--The Secretary shall prescribe standards for 
grants under subsection (a), including--
            ``(1) grant application and approval procedures; and
            ``(2) requirements for the content of the instrument 
        recording the purchase of the development rights.
    ``(d) Release of Purchased Rights and Covenant.--Any development 
rights purchased under the program shall remain the property of the 
State or political subdivision unless the Secretary approves the 
transfer or disposal of the development rights after making a 
determination that the transfer or disposal of that right is in the 
public interest.
    ``(e) Limitation.--The Secretary may not make a grant under the 
pilot program for the purchase of development rights at more than 10 
airports''.
    (b) Conforming Amendment.--The chapter analysis for chapter 471 is 
amended by inserting after the item relating to section 47140 the 
following:

``47141. Pilot program for purchase of airport development rights''.

SEC. 219. GARY/CHICAGO AIRPORT FUNDING.

    The Administrator of the Federal Aviation Administration shall, for 
purposes of chapter 471 of title 49, United States Code, give priority 
consideration to a letter of intent application for funding submitted 
by the City of Gary, Indiana, or the State of Indiana, for the 
extension of the main runway at the Gary/Chicago Airport. The letter of 
intent application shall be considered upon completion of the 
environmental impact statement and benefit cost analysis in accordance 
with Federal Aviation Administration requirements. The Administrator 
shall consider the letter of intent application not later than 90 days 
after receiving it from the applicant.

SEC. 220. CIVIL PENALTY FOR CLOSURE OF AN AIRPORT WITHOUT PROVIDING 
              SUFFICIENT NOTICE.

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

``SEC. 46319. CLOSURE OF AN AIRPORT WITHOUT PROVIDING SUFFICIENT 
              NOTICE.

    ``(a) Prohibition.--A public agency (as defined in section 47102) 
may not 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. Closure of an airport without providing sufficient note.''.

SEC. 221. 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.

                 TITLE III--AIRLINE SERVICE DEVELOPMENT

                    Subtitle A--Program Enhancements

SEC. 301. DELAY REDUCTION MEETINGS.

    (a) In General.--Subchapter I of chapter 417 is amended by adding 
at the end the following new section:
``Sec. 41723. Delay reduction actions
    ``(a) Delay Reduction Meetings.--
            ``(1) 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--
                    ``(A) the Administrator of the Federal Aviation 
                Administration determines that it is necessary to 
                convene such a meeting; and
                    ``(B) the Secretary determines that the meeting is 
                necessary to meet a serious transportation need or 
                achieve an important public benefit.
            ``(2) Meeting conditions.--Any meeting under paragraph 
        (1)--
                    ``(A) shall be chaired by the Administrator;
                    ``(B) shall be open to all scheduled air carriers; 
                and
                    ``(C) shall be limited to discussions involving the 
                airports and time periods described in the 
                Administrator's determination.
            ``(3) 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.
            ``(4) Delay reduction offers.--An air carrier attending the 
        meeting shall make any delay reduction offer to the 
        Administrator rather than to another carrier.
            ``(5) 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) Stormy Weather Agreements Limited Exemption.--
            ``(1) In general.--The Secretary may establish a program to 
        authorize by order discussions and agreements between 2 or more 
        air carriers for the purpose of reducing flight delays during 
        periods of inclement weather.
            ``(2) Requirements.--An authorization issued under 
        paragraph (1)--
                    ``(A) may only be issued by the Secretary after a 
                determination by the Federal Aviation Administration 
                that inclement weather is likely to adversely and 
                directly affect capacity at an airport for a period of 
                at least 3 hours;
                    ``(B) shall apply only to discussions and 
                agreements concerning flights directly affected by the 
                inclement weather; and
                    ``(C) shall remain in effect for a period of 24 
                hours.
            ``(3) Procedure.--The Secretary shall establish procedures 
        within 30 days after such date of enactment for--
                    ``(A) filing requests for an authorization under 
                paragraph (1);
                    ``(B) participation under paragraph (5) by 
                representatives of the Department of Transportation in 
                any meetings or discussions held pursuant to such an 
                order; and
                    ``(C) the determination by the Federal Aviation 
                Administration about the impact of inclement weather.
            ``(4) Copy of participation request filed with secretary.--
        Before an air carrier may request an order under paragraph (1), 
        it shall file a request with the Secretary, in such form and 
        manner as the Secretary may prescribe, to participate in the 
        program established under paragraph (1).
            ``(5) DOT participation.--The Secretary shall ensure that 
        the Department is represented at any meetings authorized under 
        this subsection.
    ``(c) Exemption Authorized.--When the Secretary finds that it is 
required by the public interest, the Secretary, as part of an order 
issued under subsection (b)(1), shall exempt a person affected by the 
order from the antitrust laws to the extent necessary to allow the 
person to proceed with the activities approved in the order.
    ``(d) 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).
    ``(e) Sunset.--The authority of the Secretary to issue an order 
under subsection (b)(1) of this section expires at the end of the 2-
year period that begins 45 days after the date of enactment of the 
Aviation Investment and Revitalization Vision Act. The Secretary may 
extend the 2-year Period for an additional 2 years if the Secretary 
determines that such an extension is necessary and in the public 
interest. The Secretary shall notify the Senate Committee on Commerce, 
Science, and Transportation, and to the House of Representatives 
Committee on Transportation and Infrastructure of any such 
extension.''.
    (b) Conforming Amendment.--The chapter analysis for chapter 417 is 
amended by inserting after the item relating to section 41722 the 
following new item:

``41723. Delay reduction actions.''.

SEC. 302. SMALL COMMUNITY AIR SERVICE DEVELOPMENT PILOT PROGRAM.

    (a) 3-Year Extension.--Section 41743(e)(2) is amended--
            (1) by striking ``There is'' and inserting ``There are'';
            (2) by striking ``2001 and'' and inserting ``2001,'';
            (3) by striking ``2003'' and inserting ``2003, and 
        $27,500,000 for each of fiscal years 2004, 2005, and 2006''; 
        and
            (4) by striking ``section.'' and inserting ``section, not 
        more than $275,000 per year of which may be used for 
        administrative costs in fiscal years 2004 through 2006.''.
    (b) Additional Communities.--Section 41743(c)(4) of such title is 
amended by striking ``program.'' and inserting ``program each year. 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.

SEC. 303. DOT STUDY OF COMPETITION AND ACCESS PROBLEMS AT LARGE AND 
              MEDIUM HUB AIRPORTS.

    (a) In General.--The Secretary of Transportation shall study 
competition and airline access problems at hub airports (as defined in 
section 41731(a)(3)) of title 49, United States Code, and medium hub 
airports (as defined in section 41714(h)(9) of that title). In the 
study, the Secretary shall examine, among other matters--
            (1) gate usage and availability; and
            (2) the effects of the pricing of gates and other 
        facilities on competition and access.
    (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 competition and airline access at such airports 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.

SEC. 304. COMPETITION DISCLOSURE REQUIREMENT FOR LARGE AND MEDIUM HUB 
              AIRPORTS.

    Section 47107 is amended by adding at the end the following:
    ``(q) 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 hub airport or a medium hub 
        airport only if the Secretary receives assurances that the 
        airport sponsor will provide the information required by 
        paragraph (2) at such time and in such form as the Secretary 
        may require.
            ``(2) Competitive access.--If an airport denies an 
        application by an air carrier to receive access to gates or 
        other facilities at that airport in order to provide service to 
        the airport or to expand service at the airport, then, within 
        30 days after denying the request, the airport sponsor shall--
                    ``(A) notify the Secretary of the denial; and
                    ``(B) transmit a report to the Secretary that--
                            ``(i) describes the request;
                            ``(ii) explains the reasons for the denial; 
                        and
                            ``(iii) provides a time frame within which, 
                        if any, the airport will be able to accommodate 
                        the request.
            ``(3) Definitions.--In this subsection:
                    ``(A) Hub airport.--The term `hub airport' has the 
                meaning given that term by section 41731(a)(3).
                    ``(B) Medium hub airport.--The term `medium hub 
                airport' has the meaning given that term by section 
                41714(h)(9).''.

SEC. 305. LOCATION OF SHUTTLE SERVICE AT RONALD REAGAN WASHINGTON 
              NATIONAL AIRPORT.

    The Airports Authority (as defined in section 49103(1) of title 49, 
United States Code) shall, in conjunction with the Department of 
Transportation, conduct a study on the feasibility of housing the gates 
used by all air carriers providing shuttle service from Ronald Reagan 
Washington National Airport in the same terminal.

SEC. 306. AIR CARRIERS REQUIRED TO HONOR TICKETS FOR SUSPENDED SERVICE.

    (a) In General.--Section 145(a) of the Aviation and Transportation 
Security Act of 2001 (49 U.S.C. 40101 note) is amended by adding at the 
end the following: ``The Secretary of Transportation shall give 
favorable consideration to waiving the terms and conditions established 
by this section, including those set forth in the guidance provided by 
the Department in notices, dated August 8, 2002, November 14, 2002, and 
January 23, 2003, in cases where remaining carriers operate additional 
flights to accommodate passengers whose service was suspended, 
interrupted, or discontinued under circumstances described in the 
preceding sentence over routes located in isolated areas that are 
unusually dependent on air transportation.''.
    (b) Extension.--Section 145(c) of such 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''.

    Subtitle B--Small Community and Rural Air Service Revitalization

SEC. 351. REAUTHORIZATION OF ESSENTIAL AIR SERVICE PROGRAM.

    Section 41742(a) of title 49, United States Code, is amended to 
read as follows:
    ``(a) In General.--There are authorized to be appropriated to the 
Secretary of Transportation to carry out the essential air service 
under this subchapter, $113,000,000 for each of fiscal years 2004 
through 2007, $50,000,000 of which for each such year shall be derived 
from amounts received by the Federal Aviation Administration credited 
to the account established under section 45303 of this title or 
otherwise provided to the Administration.''.

SEC. 352. INCENTIVE PROGRAM.

    (a) In General.--Chapter 417 of title 49, United States Code, is 
amended by adding at the end the following:

              ``SUBCHAPTER IV--MARKETING INCENTIVE PROGRAM

``Sec. 41781. Purpose.
``Sec. 41782. Marketing program.
``Sec. 41783. State marketing assistance.
``Sec. 41784. Definitions.
``Sec. 41785. Authorization of appropriations.
``Sec. 41781. Purposes
    ``The purposes of this subchapter 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.
``Sec. 41782. Marketing program
    ``(a) In General.--The Secretary of Transportation shall establish 
a marketing incentive program for communities that receive subsidized 
service by an air carrier under section 41733 under which the airport 
sponsor in such a community may receive a grant of not more than 
$50,000 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 the marketing plan shall come from non-Federal 
        sources. For purposes of this paragraph--
                    ``(A) the non-Federal portion of the publicly 
                financed costs may be derived from contributions in 
                kind; and
                    ``(B) State or local matching contributions may not 
                be derived, directly or indirectly, from Federal funds, 
                but the use by a state or local government of proceeds 
                from the sale of bonds to provide the matching 
                contribution is not considered to be a contribution 
                derived directly or indirectly from Federal funds, 
                without regard to the Federal income tax treatment of 
                interest paid on those bonds or the Federal income tax 
                treatment of those bonds.
            ``(2) Bonus for 25-percent increase in usage.--Except as 
        provided in paragraph (3), if, after any 12-month period during 
        which a marketing plan has been in effect, the Secretary 
        determines that the marketing plan has increased average 
        monthly boardings, or the level of passenger usage, at the 
        airport facilities at 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 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, the Secretary determines that the marketing plan has 
        increased average monthly boardings, or the level of passenger 
        usage, at the airport facilities at 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 for the following 12-month period.
``Sec. 41783. State marketing assistance
    ``The Secretary of Transportation may provide up to $50,000 in 
technical assistance to any State within which an eligible point that 
receives subsidized service by an air carrier under section 41733 is 
located for the purpose of assisting the State and such communities to 
develop methods to increase boardings in such communities. At least 10 
percent of the costs of the activity with which the assistance is 
associated shall come from non-Federal sources, including contributions 
in kind.
``Sec. 41784. Definitions
    ``In this subchapter:
            ``(1) Eligible place.--The term `eligible place' has the 
        meaning given that term in section 41731(a)(1), subject to the 
        provisions of section 332 of the Department of Transportation 
        and Related Agencies Appropriations Act, 2000 (49 U.S.C. 41731 
        note).
            ``(2) Eligible essential air service community.--The term 
        `eligible essential air service community' means an eligible 
        place that--
                    ``(A) submits an application to the Secretary in 
                such form, at such time, and containing such 
                information as the Secretary may require, including a 
                detailed marketing plan, or specifications for the 
                development of such a plan, to increase average 
                boardings, or the level of passenger usage, at its 
                airport facilities; and
                    ``(B) provides assurances, satisfactory to the 
                Secretary, that it is able to meet the non-Federal 
                funding requirements of section 41782(b)(1).
            ``(3) Passenger boardings.--The term `passenger boardings' 
        has the meaning given that term by section 47102(10).
            ``(4) Sponsor.--The term `sponsor' has the meaning given 
        that term in section 47102(19).
``Sec. 41785. Authorization of appropriations
    ``There are authorized to be appropriated to the Secretary of 
Transportation $12,000,000 for each of fiscal years 2004 through 2006, 
to carry out this subchapter, not more than $200,000 per year of which 
may be used for administrative costs.''.
    (b) Conforming Amendment.--The chapter analysis for chapter 417 of 
such title is amended by inserting after the item relating to section 
41767 the following:

              ``subchapter iv--marketing incentive program
``41781. Purpose.
``41782. Marketing program.
``41783. State marketing assistance.
``41784. Definitions.
``41785. Authorization of appropriations.''.

SEC. 353. PILOT PROGRAMS.

    (a) In General.--Subchapter II of chapter 417 of title 49, United 
States Code, is amended by adding at the end the following:
``Sec. 41745. Other pilot programs
    ``(a) In General.--If the entire amount authorized to be 
appropriated to the Secretary of Transportation by section 41785 is 
appropriated for fiscal years 2004 through 2007, the Secretary of 
Transportation shall establish pilot programs that meet the 
requirements of this section for improving service to communities 
receiving essential air service assistance under this subchapter or 
consortia of such communities.
    ``(b) Programs Authorized.--
            ``(1) Community flexibility.--The Secretary shall establish 
        a pilot program for not more than 10 communities or consortia 
        of communities under which the airport sponsor of an airport 
        serving the community or consortium may elect to forego any 
        essential air service assistance under preceding sections of 
        this subchapter for a 10-year period in exchange for a grant 
        from the Secretary equal in value to twice the annual essential 
        air service assistance received for the most recently ended 
        calendar year. Under the program, and notwithstanding any 
        provision of law to the contrary, the Secretary shall make a 
        grant to each participating sponsor for use by the recipient 
        for any project that--
                    ``(A) is eligible for assistance under chapter 471;
                    ``(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.
            ``(2) Equipment changes.--
                    ``(A) In general.--The Secretary shall establish a 
                pilot program for not more than 10 communities or 
                consortia of communities under which, upon receiving a 
                petition from the sponsor of the airport serving the 
                community or consortium, the Secretary shall authorize 
                and request the essential air service provider for that 
                community or consortium to use smaller equipment to 
                provide the service and to consider increasing the 
                frequency of service using such smaller equipment. 
                Before granting any such petition, the Secretary shall 
                determine that passenger safety would not be 
                compromised by the use of such smaller equipment. Any 
                community that participates in a pilot program under 
                this subparagraph is deemed to have waived the minimum 
                service requirements under section 41732(b) for 
                purposes of its participation in that pilot program.
                    ``(B) Alternative services.--For any 3 aiport 
                sponsors participating in the program established under 
                subparagraph (A), the Secretary may establish a pilot 
                program under which--
                            ``(i) the Secretary provides 100 percent 
                        Federal funding for reasonable levels of 
                        alternative transportation services from the 
                        eligible place to the nearest hub airport or 
                        small hub airport;
                            ``(ii) the Secretary will authorize the 
                        sponsor to use its essential air service 
                        subsidy funds provided under preceding sections 
                        of this subchapter for any airport-related 
                        project that would improve airport facilities; 
                        and
                            ``(iii) the sponsor may make an irrevocable 
                        election to terminate its participation in the 
                        pilot program established under this paragraph 
                        after 1 year.
            ``(3) Cost-sharing.--The Secretary shall establish a pilot 
        program under which the sponsors of airports serving a 
        community or consortium of communities share the cost of 
        providing air transportation service greater than the basic 
        essential air service provided under this subchapter.
    ``(c) Code-Sharing.--Under the pilot program established under 
subsection (a), the Secretary is authorized to require air carriers 
providing service to participating communities and major air carriers 
(as defined in section 41716(a)(2)) serving large hub airports (as 
defined in section 41731(a)(3)) 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. The Secretary 
may not require air carriers to participate in such arrangements under 
this subsection for more than 10 such communities.
    ``(d) Tracking Service.--The Secretary shall require carriers 
providing subsidy for service under section 41733 to track changes in 
services, including on-time arrivals and departures, on such subsidized 
routes, and to report such information to the Secretary on a semi-
annual basis in such form as the Secretary may require.
    ``(e) Administrative Provisions.--In order to participate in a 
pilot program established under this section, the airport sponsor for a 
community or consortium of communities shall submit an application to 
the Secretary in such form, at such time, and containing such 
information as the Secretary may require.''.
    (b) Conforming Amendment.--The chapter analysis for chapter 417 of 
such title is amended by inserting after the item relating to section 
41744 the following:

``41745. Other pilot programs.''.

SEC. 354. EAS PROGRAM AUTHORITY CHANGES.

    (a) Rate Renegotiation.--If the Secretary of Transportation 
determines that essential air service providers are experiencing 
significantly increased costs of providing service under subchapter II 
of chapter 417 of title 49, United States Code, the Secretary of 
Transportation may increase the rates of compensation payable under 
that subchapter within 30 days after the date of enactment of this Act 
without regard to any agreements or requirements relating to the 
renegotiation of contracts. For purposes of this subsection, the term 
``significantly increased costs'' means an average annual total unit 
cost increase (but not increases in individual unit costs) of 10 
percent or more in relation to the unit rates used to construct the 
subsidy rate, based on the carrier's internal audit of its financial 
statements.
    (b) Returned Funds.--Notwithstanding any provision of law to the 
contrary, any funds made available under subchapter II of chapter 417 
of title 49, United States Code, that are returned to the Secretary by 
an airport sponsor because of decreased subsidy needs for essential air 
service under that subchapter shall remain available to the Secretary 
and may be used by the Secretary under that subchapter to increase the 
frequency of flights at that airport.
    (c) Small Community Air Service Development Pilot Program.--Section 
41743(h) of such title is amended by striking ``an airport'' and 
inserting ``each airport''.

SEC. 355. ONE-YEAR EXTENSION OF EAS ELIGIBILITY FOR COMMUNITIES 
              TERMINATED IN 2003 DUE TO DECREASED AIR TRAVEL.

    Notwithstanding the rate of subsidy limitation in section 332 of 
the Department of Transportation and Related Agencies Appropriations 
Act, 2000, the Secretary of Transportation may not terminate an 
essential air service subsidy provided under chapter 417 of title 49, 
United States Code, before the end of calendar year 2004 for air 
service to a community--
            (1) whose calendar year ridership for 2000 was sufficient 
        to keep the per passenger subsidy below that limitation; and
            (2) that has received notice that its subsidy will be 
        terminated during calendar year 2003 because decreased 
        ridership has caused the subsidy to exceed that limitation.

  Subtitle C--Financial Improvement Effort and Executive Compensation 
                                 Report

SEC. 371. GAO REPORT ON AIRLINES ACTIONS TO IMPROVE FINANCES AND ON 
              EXECUTIVE COMPENSATION.

    (a) Finding.--The 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, the Congress needs more frequent information and 
independently verified information about the financial condition of 
these airlines.
    (b) Semiannual Reports.--The Comptroller General shall prepare a 
semiannual report to the Congress--
            (1) analyzing measures being taken by air carriers engaged 
        in air transportation and intrastate air transportation (as 
        such terms are used in subtitle VII of title 49, United States 
        Code) to reduce costs and to improve their earnings and profits 
        and balance sheets; and
            (2) stating--
                    (A) the total compensation (as defined in section 
                104(b) of the Air Transportation Safety and System 
                Stabilization Act (49 U.S.C. 40101 note)) paid by the 
                air carrier to each officer or employee of that air 
                carrier to whom that section applies for the period to 
                which the report relates; and
                    (B) the terms and value (determined on the basis of 
                the closing price of the stock on the last business day 
                of the period to which the report relates) of any stock 
                options awarded to such officer during that period.
    (c) GAO authority.--In order to compile the reports 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 reports. The Comptroller General shall submit 
with each such 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 compilation of reports required by subsection (c) to the Senate 
Committee on Commerce, Science, and Transportation and the House of 
Representatives Committee on Transportation and Infrastructure.

                      TITLE IV--AVIATION SECURITY

SEC. 401. STUDY OF EFFECTIVENESS OF TRANSPORTATION SECURITY SYSTEM.

    (a) In General.--The Secretary of Homeland Security, in 
consultation with representatives of the airport 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.

SEC. 402. AVIATION SECURITY CAPITAL FUND.

    (a) In General.--There may be established within the Department of 
Homeland Security a fund to be known as the Aviation Security Capital 
Fund. There are authorized to be appropriated to the Fund up to 
$500,000,000 for each of the fiscal years 2004 through 2007, such 
amounts to be derived from fees received under section 44940 of title 
49, United States Code. Amounts in the fund shall be allocated in such 
a manner that---
            (1) 40 percent shall be made available for hub airports;-
            (2) 20 percent shall be made available for medium hub 
        airports;-
            (3) 15 percent shall be made available for small hub 
        airports and nonhub airports; and-
            (4) 25 percent may be distributed at the Secretary's 
        discretion.
    (b) Purpose.--Amounts in the Fund shall be available to the 
Secretary of Homeland Security to provide financial assistance to 
airport sponsors to defray capital investment in transportation 
security at airport facilities in accordance with the provisions of 
this section. The program shall be administered in concert with the 
airport improvement program under chapter 417 of title 49, United 
States Code.
    (c) Apportionment.--Amounts made available under subsection (a)(1), 
(a)(2), or (a)(3) shall be apportioned among the airports in each 
category in accordance with a formula based on the ratio that passenger 
enplanements at each airport in the category bears to the total 
passenger enplanements at all airports in that category.
    (d) Letters of Intent.--The Secretary of Homeland Security, or his 
delegate, may execute letters of intent to commit funding to airport 
sponsors from the Fund.
    (e) Conforming Amendment.--Section 44940(a)(1) of title 49, United 
States Code, is amended by adding at the end the following:
                    ``(H) The costs of security-related capital 
                improvements at airports.''.
    (f) Definitions.--Any term used in this section that is defined or 
used in chapter 417 of title 49, United States Code, has the meaning 
given that term in that chapter.

SEC. 403. TECHNICAL AMENDMENTS RELATED TO SECURITY-RELATED AIRPORT 
              DEVELOPMENT.

    (a) Definition of Airport Development.--Section 47102(3)(B) is 
amended--
            (1) by inserting ``and'' after the semicolon in clause 
        (viii);
            (2) by striking ``circular; and'' in clause (ix) and 
        inserting ``circular.''; and
            (3) by striking clause (x).
    (b) Improvement of Facilities and Equipment.--Section 308(a) of the 
Federal Aviation Reauthorization Act of 1996 (49 U.S.C. 44901 note) is 
amended by striking ``travel.'' and inserting ``travel if the 
improvements or equipment will be owned and operated by the airport.''.

SEC. 404. ARMED FORCES CHARTERS.

    Section 132 of the Aviation and Transportation Security Act (49 
U.S.C. 44903 note) is amended by adding at the end the following:
    ``(c) Exemption for Armed Forces Charters.--
            ``(1) In general.--Subsections (a) and (b) of this section, 
        and chapter 449 of title 49, United States Code, do not apply 
        to passengers and property carried by aircraft when employed to 
        provide charter transportation to members of the armed forces.
            ``(2) In general.--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) of 
        title 49, United States Code.
            ``(3) Armed forces defined.--In this subsection, the term 
        `armed forces' has the meaning given that term by section 
        101(a)(4) of title 10, United States Code.''.

SEC. 405. ARMING CARGO PILOTS AGAINST TERRORISM.

    (a) Short Title.--This section may be cited as the ``Arming Cargo 
Pilots Against Terrorism Act''.
    (b) Findings.--Congress makes the following findings:
            (1) During the 107th Congress, both the Senate and the 
        House of Representatives overwhelmingly passed measures that 
        would have armed pilots of cargo aircraft.
            (2) Cargo aircraft do not have Federal air marshals, 
        trained cabin crew, or determined passengers to subdue 
        terrorists.
            (3) Cockpit doors on cargo aircraft, if present at all, 
        largely do not meet the security standards required for 
        commercial passenger aircraft.
            (4) Cargo aircraft vary in size and many are larger and 
        carry larger amounts of fuel than the aircraft hijacked on 
        September 11, 2001.
            (5) Aircraft cargo frequently contains hazardous material 
        and can contain deadly biological and chemical agents and 
        quantities of agents that cause communicable diseases.
            (6) Approximately 12,000 of the nation's 90,000 commercial 
        pilots serve as pilots and flight engineers on cargo aircraft.
            (7) There are approximately 2,000 cargo flights per day in 
        the United States, many of which are loaded with fuel for 
        outbound international travel or are inbound from foreign 
        airports not secured by the Transportation Security 
        Administration.
            (8) Aircraft transporting cargo pose a serious risk as 
        potential terrorist targets that could be used as weapons of 
        mass destruction.
            (9) Pilots of cargo aircraft deserve the same ability to 
        protect themselves and the aircraft they pilot as other 
        commercial airline pilots.
            (10) Permitting pilots of cargo aircraft to carry firearms 
        creates an important last line of defense against a terrorist 
        effort to commandeer a cargo aircraft.
    (c) 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 
and 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.
    (d) Arming Cargo Pilots Against Terrorism.--Section 44921 of title 
49, United States Code, is amended--
            (1) in subsection (a), by striking ``passenger'' each place 
        that it appears; and
            (2) in subsection (k)--
                    (A) in paragraph (2)--
                            (i) by striking ``or,'' and all that 
                        follows; and
                            (ii) by inserting ``or any other flight 
                        deck crew member.''; and
                    (B) by adding at the end the following new 
                paragraph:
            ``(3) All-cargo air transportation.--For the purposes of 
        this section, the term air transportation includes all-cargo 
        air transportation.''.
    (e) Time for Implementation.--The training of pilots as Federal 
flight deck officers required in the amendments made by subsection (d) 
shall begin as soon as practicable and no later than 90 days after the 
date of enactment of this Act.
    (f) 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. 406. GENERAL AVIATION AND AIR CHARTERS.

    Section 132(a) of the Aviation and Transportation Security Act (49 
U.S.C. 44944 note) is amended by striking ``12,500 pounds or more'' and 
inserting ``more than 12,500 pounds''.

SEC. 407. 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, not later 
than 60 days after the date of establishing the ADIZ, 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 of the 
need for the ADIZ. The Administrator shall provide the Committees an 
updated report every 60 days until the establishment of 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) 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 30 
days after the date of enactment of this Act.
    (c) Reporting Requirements.--If a report required under subsection 
(a) or (b) indicates that the ADIZ is to be continued, the 
Administrator shall outline changes in procedures and requirements to 
improve operational efficiency and minimize the operational impacts of 
the ADIZ on pilots and air traffic controllers.
    (d) Definition.--In this section, the terms ``Air Defense 
Identification Zone'' and ``ADIZ'' 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. 408. 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 CAPPS II, on the privacy and civil liberties of United States 
citizens.
    (b) Specific Issues To Be Addressed.--The report shall address the 
following:
            (1) Whether and for what period of time data gathered on 
        individual travelers will be retained, who will have access to 
        such data, and who will make decisions concerning access to 
        such data.
            (2) How the Transportation Security Administration will 
        treat the scores assigned to individual travelers to measure 
        the likelihood they may pose a security threat, including how 
        long such scores will be retained and whether and under what 
        circumstances they may be shared with other governmental, 
        nongovernmental, or commercial entities.
            (3) The role airlines and outside vendors or contractors 
        will have in implementing and operating the system, and to what 
        extent will they have access, or the means to obtain access, to 
        data, scores, or other information generated by the system.
            (4) The safeguards that will be implemented to ensure that 
        data, scores, or other information generated by the system will 
        be used only as officially intended.
            (5) The procedures that will be implemented to mitigate the 
        effect of any errors, and what procedural recourse will be 
        available to passengers who believe the system has wrongly 
        barred them from taking flights.
            (6) The oversight procedures that will be implemented to 
        ensure that, on an ongoing basis, privacy and civil liberties 
        issues will continue to be considered and addressed with high 
        priority as the system is installed, operated and updated.

SEC. 409. 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. 410. FOREIGN REPAIR STATION SAFETY AND SECURITY.

    (a) Definitions.--In this section:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Federal Aviation Administration.
            (2) Domestic repair station.--The term ``domestic repair 
        station'' means a repair station or shop that--
                    (A) is described in section 44707(2) of title 49, 
                United States Code; and
                    (B) is located in the United States.
            (3) Foreign repair station.--The term ``foreign repair 
        station'' means a repair station or shop that--
                    (A) is described in section 44707(2) of title 49, 
                United States Code; and
                    (B) is located outside of the United States.
            (4) Under secretary.--The term ``Under Secretary'' means 
        the Under Secretary for Border and Transportation Security of 
        the Department of Homeland Security.
    (b) Applicability of Standards.--Within 180 days after the date of 
enactment of this Act, the Administrator shall issue regulations to 
ensure that foreign repair stations meet the same level of safety 
required of domestic repair stations.
    (c) Specific Standards.--In carrying out subsection (b), the 
Administrator shall, at a minimum, specifically ensure that foreign 
repair stations, as a condition of being certified to work on United 
States registered aircraft--
            (1) institute a program of drug and alcohol testing of its 
        employees working on United States registered aircraft and that 
        such a program provides an equivalent level of safety achieved 
        by the drug and alcohol testing requirements that workers are 
        subject to at domestic repair stations;
            (2) agree to be subject to the same type and level of 
        inspection by the Federal Aviation Administration as domestic 
        repair stations and that such inspections occur without prior 
        notice to the country in which the station is located; and
            (3) follow the security procedures established under 
        subsection (d).
    (d) Security Audits.--
            (1) In general.--To ensure the security of maintenance and 
        repair work conducted on United States aircraft and components 
        at foreign repair stations, the Under Secretary, in 
        consultation with the Administrator, shall complete a security 
        review and audit of foreign repair stations certified by the 
        Administrator under part 145 of title 14, Code of Federal 
        Regulations. The review shall be completed not later than 180 
        days after the date on which the Under Secretary issues 
        regulations under paragraph (6).
            (2) 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 paragraph (1) within 90 days of providing 
        notice to the repair station of the security issues and 
        vulnerabilities identified.
            (3) Suspensions and revocations of certificates.--
                    (A) Failure to carry out effective security 
                measures.--If the Under Secretary determines as a 
                result of a security audit that a foreign repair 
                station does not maintain and carry out effective 
                security measures or if a foreign repair station does 
                not address the security issues and vulnerabilities as 
                required under subsection (d)(2), 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 has addressed the security issues 
                identified in the audit, and transmits the 
                determination to the Administrator.
                    (B) 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.
            (4) Failure to meet audit deadline.--If the security audits 
        required by paragraph (1) are not completed on or before the 
        date that is 180 days after the date on which the Under 
        Secretary issues regulations under paragraph (6), the 
        Administrator may not certify, or renew the certification of, 
        any foreign repair station until such audits are completed.
            (5) Priority for audits.--In conducting the audits 
        described in paragraph (1), the Under Secretary and the 
        Administrator shall give priority to foreign repair stations 
        located in countries identified by the United States Government 
        as posing the most significant security risks.
            (6) Regulations.--Not later than 180 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 repair stations. If final 
        regulations are not issued within 180 days of the date of 
        enactment of this Act, the Administrator may not certify, or 
        renew the certification of, any foreign repair station until 
        such regulations have been issued.

                         TITLE V--MISCELLANEOUS

SEC. 501. EXTENSION OF WAR RISK INSURANCE AUTHORITY.

    Section 44310 is amended by striking ``2004.'' and inserting 
``2006.''.

SEC. 502. 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 facilities and 
equipment.
    ``(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 of this title.
    ``(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) of this title to carry out this program.
    ``(e) Definitions.--In this section:
            ``(1) Eligible project.--The term `eligible project' means 
        a project relating to the Nation's air traffic control system 
        that is certified or approved by the Administrator 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, lighting improvements, and control 
                towers;
                    ``(B) automation tools to effect improvements in 
                airport capacity, including passive final approach 
                spacing tools and traffic management advisory 
                equipment; and
                    ``(C) facilities and equipment that enhance 
                airspace control procedures, including consolidation of 
                terminal radar control facilities and equipment, 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 of the Federal Aviation 
Administration, project sponsors 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, which shall not be 
subject to administrative rulemaking requirements under subchapter II 
of chapter 5 of title 5.''.
    (b) Conforming Amendment.--The chapter analyses for chapter 445 is 
amended by adding at the end the following:

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

SEC. 503. COUNTERFEIT OR FRAUDULENTLY REPRESENTED PARTS VIOLATIONS.

    Section 44726(a)(1) is amended--
            (1) by striking ``or'' after the semicolon in subparagraph 
        (A);
            (2) by redesignating subparagraph (B) as subparagraph (D);
            (3) by inserting after subparagraph (A) the following:
                    ``(B) who knowingly, and with intent to defraud, 
                carried out or facilitated an activity punishable under 
                a law described in subparagraph (A);
                    ``(C) whose certificate is revoked under subsection 
                (b) of this section; or''; and
            (4) by striking ``convicted of such a violation.'' in 
        subparagraph (D), as redesignated, and inserting ``described in 
        subparagraph (A), (B) or (C).''.

SEC. 504. CLARIFICATIONS TO PROCUREMENT AUTHORITY.

    (a) Update and Clarification of Authority.--
            (1) Section 40110(c) is amended to read as follows:
    ``(c) Duties and Powers.--When carrying out subsection (a) of this 
section, the Administrator of the Federal Aviation Administration may--
            ``(1) notwithstanding section 1341(a)(1) of title 31, lease 
        an interest in property for not more than 20 years;
            ``(2) consider the reasonable probable future use of the 
        underlying land in making an award for a condemnation of an 
        interest in airspace; and
            ``(3) dispose of property under subsection (a)(2) of this 
        section, except for airport and airway property and technical 
        equipment used for the special purposes of the Administration, 
        only under subchapter III of chapter 5 of title 40, United 
        States Code.''.
            (2) Section 40110(d)(1) is amended by striking ``implement, 
        not later than January 1, 1996,'' and inserting ``implement''.
    (b) Clarification.--Section 106(f)(2)(A)(ii) is amended by striking 
``property'' and inserting ``property, services,''.

SEC. 505. JUDICIAL REVIEW.

    Section 46110(c) is amended by adding at the end the following: 
``Except as otherwise provided in this subtitle, judicial review of an 
order issued, in whole or in part, pursuant to this part, part B of 
this subtitle , or subsection (l) or (s) of section 114 of this title, 
shall be in accordance with the provisions of this section.''.

SEC. 506. 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'';
            (2) by striking ``or'' the last time 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; and
            (5) by striking ``paragraphs (1) and (2)'' in paragraph 
        (4), as redesignated, and inserting ``paragraph (1)''.
    (b) Increase in Limit on Administrative Authority and Civil 
Penalty.--Section 46301(d) is amended--
            (1) by striking ``$50,000;'' in paragraph (4)(A) by 
        inserting ``$50,000, if the violation occurred before the date 
        of enactment of the Aviation Authorization Act of 2003, or 
        $1,000,000, if the violation occurred on or after that date;''; 
        and
            (2) by striking ``$50,000.'' in paragraph (8) and inserting 
        ``$50,000, if the violation occurred before the date of 
        enactment of the Aviation Authorization Act of 2003, or 
        $1,000,000, if the violation occurred on or after that date.''.

SEC. 507. MISCELLANEOUS AMENDMENTS.

    (a) Amounts Subject to Apportionment Under Chapter 471.--
            (1) In general.--Section 47102 is amended--
                    (A) by striking paragraph (6) and inserting the 
                following:
            ``(6) `amount newly made available' means the amount newly 
        made available under section 48103 of this title as an 
        authorization for grant obligations for a fiscal year, as that 
        amount may be limited in that year by a provision in an 
        appropriations Act, but as determined without regard to grant 
        obligation recoveries made in that year or amounts covered by 
        section 47107(f).''; and
                    (B) by redesignating paragraphs (7) through (20) as 
                paragraphs (8) through (21), and inserting after 
                paragraph (6) the following:
            ``(7) `amount subject to apportionment' means the amount 
        newly made available, less the amount made available for the 
        fiscal year for administrative expenses under section 48105.''.
            (2) Conforming Amendments.--
                    (A) Section 41742(b) is amended by striking 
                ``Notwithstanding section 47114(g) of this title, any'' 
                and inserting ``Any''.
                    (B) Section 47104(b) is amended to read as follows:
    ``(b) Incurring Obligations.--The Secretary may incur obligations 
to make grants from the amount subject to apportionment as soon as the 
apportionments required by sections 47114(c) and (d)(2) of this title 
have been issued.''.
                    (C) Section 47107(f)(3) is amended by striking 
                ``made available to the Secretary under section 48103 
                of this title and'' and inserting ``subject to 
                apportionment, and is''.
                    (D) Section 47114 is amended--
                            (i) by striking subsection (a);
                            (ii) by striking ``apportionment for that 
                        fiscal year'' in subsection (b) and inserting 
                        ``apportionment'';
                            (iii) by striking ``total amount made 
                        available under section 48103'' in subsections 
                        (c)(2)(C), (d)(3), and (e)(4) and inserting 
                        ``amount subject to apportionment'';
                            (iv) by striking ``each fiscal year'' in 
                        subsection (c)(2)(A); and
                            (v) by striking ``for each fiscal year'' in 
                        subsection (d)(2).
                    (E) Subsection 47116(b) is amended by striking 
                ``amounts are made available under section 48103 of 
                this title'' and inserting ``an amount is subject to 
                apportionment''.
                    (F) Section 47117 is amended--
                            (i) by striking ``amounts are made 
                        available under section 48103 of this title.'' 
                        in subsection (a) and inserting ``an amount is 
                        subject to apportionment.'';
                            (ii) by striking ``a sufficient amount is 
                        made available under section 48103.'' in 
                        subsection (f)(2)(A) and inserting ``there is a 
                        sufficient amount subject to apportionment.'';
                            (iii) in subsection (f)(2)(B), by inserting 
                        ``in'' before ``the succeeding'';
                            (iv) by striking ``Newly available'' in the 
                        caption of subsection (f)(3) and inserting 
                        ``Restored'';
                            (v) by striking ``newly available under 
                        section 48103 of this title,'' in subsection 
                        (f)(3)(A) and inserting ``subject to 
                        apportionment,'';
                            (vi) by striking ``made available under 
                        section 48103 for such obligations for such 
                        fiscal year.'' in subsection (f)(4) and 
                        inserting ``subject to apportionment.''; and
                            (vii) by striking ``enacted after September 
                        3, 1982,'' in subsection (g).
    (b) Recovered Funds.--Section 47117 is amended by adding at the end 
the following:
    ``(h) Crediting of Recovered Funds.--For the purpose of determining 
compliance with a limitation on the amount of grant obligations that 
may be incurred in a fiscal year imposed by an appropriations Act, an 
amount that is recovered by canceling or reducing a grant obligation--
            ``(1) shall be treated as a negative obligation that is to 
        be netted against the gross obligation limitation, and
            ``(2) may permit the gross limitation to be exceeded by an 
        equal amount.''.
    (c) 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. If a grant is provided, the United States 
Government's share of the cost of the data collection shall be 100 
percent.''.
    (d) Statute of Limitations.--Section 47107(l)(5)(A) is amended by 
inserting ``or any other governmental entity'' after ``sponsor''.
    (e) Audit Certification.--Section 47107(m) is amended--
            (1) by striking ``promulgate regulations that'' in 
        paragraph (1) and inserting ``include a provision in the 
        compliance supplement provisions to'';
            (2) by striking ``and opinion of the review'' in paragraph 
        (1); and
            (3) by striking paragraph (3).
    (f) Noise Exposure Maps.--Section 47503(a) is amended by striking 
``1985,'' and inserting ``a forecast year that is at least 5 years in 
the future,''.
    (g) Clarification of Applicability of PFCs to Military Charters.--
Section 40117(e)(2) is amended--
            (1) by striking ``and'' after the semicolon in subparagraph 
        (D);
            (2) by striking ``passengers.'' in subparagraph (E) and 
        inserting ``passengers; and''; and
            (3) by adding at the end 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 United States 
        Department of Defense.''.

SEC. 508. LOW-EMISSION AIRPORT VEHICLES AND INFRASTRUCTURE.

    (a) Purpose.--The purpose of this section is to permit the use of 
funds made available under subchapter 471 to encourage commercial 
service airports in air quality nonattainment and maintenance areas to 
undertake projects for gate electrification, acquisition or conversion 
of airport vehicles and airport-owned ground support equipment to 
acquire low-emission technology, low-emission technology fuel systems, 
and other related air quality projects on a voluntary basis to improve 
air quality and more aggressively address the constraints that 
emissions can impose on future aviation growth. Use of those funds is 
conditioned on airports receiving credits for emissions reductions that 
can be used to mitigate the air quality effects of future airport 
development. Making these projects eligible for funding in addition to 
those projects that are already eligible under section 47102(3)(F) is 
intended to support those projects that, at the time of execution, may 
not be required by the Clean Air Act (42 U.S.C. 7501 et seq.), but may 
be needed in the future.
    (b) Activities Added to Definition of ``Airport Development''.--
Section 47102(3) is amended 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 
                175(A) 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 of this title. The Secretary, in consultation 
                with the Administrator of the Environmental Protection 
                Agency, shall issue guidance describing eligible low-
                emission modifications and improvements and stating how 
                airport sponsors will demonstrate benefits.
                    ``(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 175(A) 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 of this title. The 
                Secretary, in consultation with the Administrator of 
                the Environmental Protection Agency, shall issue 
                guidance describing eligible low-emission vehicle 
                technology and stating how airport sponsors will 
                demonstrate benefits. For airport-owned vehicles and 
                equipment, the acquisition of which are not otherwise 
                eligible for assistance under this subchapter, the 
                incremental cost of equipping such vehicles or 
                equipment with low-emission technology shall be treated 
                as eligible for assistance.''.
    (c) Low-emission Technology Defined.--Section 47102 is amended by 
redesignating paragraphs (10) through (20), as paragraphs (11) through 
(21) respectively, and inserting after paragraph (9) the following:
            ``(11) `low-emission technology' means technology for new 
        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 non-petroleum based, 
        as defined by the Department of Energy, but not excluding 
        hybrid systems.''.
    (d) Emissions Credits.--
            (1) In general.--Subchapter I of chapter 471, as amended by 
        section 206 of this Act, is further amended by adding at the 
        end the following:
``Sec. 47139. Emission credits for air quality projects
    ``(a) In General.--The Secretary and the Administrator of the 
Environmental Protection Agency shall jointly agree on how to assure 
that airport sponsors receive appropriate emission credits for projects 
described in sections 40117(a)(3)(G), 47102(3)(K), or 47102(3)(L) of 
this title. The agreement must, at a minimum, include provisions to 
ensure that--
            ``(1) the credits will be consistent with the Clean Air Act 
        (42 U.S.C. 7402 et seq.);
            ``(2) credits generated by the emissions reductions in 
        criteria pollutants are kept by the airport sponsor and may be 
        used for purposes of any current or future general conformity 
        determination or as offsets under the New Source Review 
        program;
            ``(3) there is national consistency in the way credits are 
        calculated and are provided to airports;
            ``(4) credits are provided to airport sponsors in a timely 
        manner; and
            ``(5) there is a method by which the Secretary can be 
        assured that, for any specific project for which funding is 
        being requested, the appropriate credits will be granted.
    ``(b) Assurance of Receipt of Credits.--
            ``(1) In general.--As a condition for making a grant for a 
        project described in section 47102(3)(K), 47102(3)(L), or 47140 
        of this title, or as a condition for granting approval to 
        collect or use a passenger facility fee for a project described 
        in sections 40117(a)(3)(G), 47102(3)(K), 47102(3)(L), or 47140 
        of this title, 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 subsection.
            ``(2) Credits for certain existing projects.--The Secretary 
        and the Administrator of the Environmental Protection Agency 
        shall jointly agree on how to provide emission credits to 
        projects previously approved under section 47136 of this title 
        during fiscal years 2001 through 2003, under terms consistent 
        with this section.''.
            (2) Conforming amendment.--The chapter analysis for chapter 
        471 is amended by inserting after the item relating to section 
        47138 the following:

``47139. Emission credits for air quality projects.''.
    (e) 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 subject to 
apportionment to retrofit existing eligible airport ground support 
equipment which 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 or maintenance area (as defined in sections 171(2) and 
175(A) of the Clean Air Act (42 U.S.C. 7501(2), 7505a)).
    ``(c) Selection Criteria.--In selecting 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 this 
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.--For purposes of this section, 
the term `eligible equipment' means ground service or maintenance 
equipment that--
            ``(1) is located at the airport;
            ``(2) used to support aeronautical and related activities 
        on the airport; and
            ``(3) will remain in operation at the airport.''.
            (2) Conforming amendment.--The chapter 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.''.

SEC. 509. LOW-EMISSION AIRPORT VEHICLES AND GROUND SUPPORT EQUIPMENT.

    Section 40117(a)(3) is amended by inserting at the end the 
following:
                    ``(G) A project for the acquisition or conversion 
                of ground support equipment or airport-owned vehicles 
                used at a commercial service airport with, or to, low-
                emission technology or cleaner burning conventional 
                fuels, or the retrofitting of such equipment or 
                vehicles that are powered by a diesel or gasoline 
                engine with emission control technologies certified or 
                verified by the Environmental Protection Agency to 
                reduce emissions, if the airport is located in an air 
                quality nonattainment or maintenance area (as defined 
                in sections 171(2) and 175(A) 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 of this title. The 
                Secretary, in consultation with the Administrator of 
                the Environmental Protection Agency, shall issue 
                guidance for eligible projects and for how benefits 
                must be demonstrated. The eligible cost is limited to 
                the incremental amount that exceeds the cost of 
                acquiring other vehicles or equipment that are not low-
                emission and would be used for the same purpose, or to 
                the cost of low-emission retrofitting. For purposes of 
                this paragraph, the term ``ground support equipment'' 
                means service and maintenance equipment used at an 
                airport to support aeronautical operations and related 
                activities.''.

SEC. 510. PACIFIC EMERGENCY DIVERSION AIRPORT.

    (a) In General.--The Secretary of Transportation shall enter into a 
memorandum of understanding with the Secretaries of Defense, the 
Interior, and Homeland Security to facilitate the sale of aircraft fuel 
on Midway Island, so that the revenue from the fuel sales can be used 
to operate Midway Island Airport in accordance with Federal Aviation 
Administration airport standards. The memorandum shall also address the 
long term potential for promoting tourism as a means of generating 
revenue to operate the airport.
    (b) Navigational Aids.--The Administrator of the Federal Aviation 
Administration may support and be responsible for maintaining all 
aviation-related navigational aids at Midway Island Airport.

SEC. 511. GULF OF MEXICO AVIATION SERVICE IMPROVEMENTS.

    (a) In General.--The Secretary of Transportation may develop and 
carry out a program designed to expand and improve the safety, 
efficiency, and security of--
            (1) air traffic control services provided to aviation in 
        the Gulf of Mexico area; and
            (2) aviation-related navigational, low altitude 
        communications and surveillance, and weather services in that 
        area.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Transportation such sums as may be 
necessary to carry out this section for the 4 fiscal year period 
beginning with fiscal year 2004.

SEC. 512. AIR TRAFFIC CONTROL COLLEGIATE TRAINING INITIATIVE.

    The Secretary of Transportation may use, from funds available to 
the Secretary and not otherwise obligated or expended, such sums as may 
be necessary to carry out and expand the Air Traffic Control Collegiate 
Training Initiative.

SEC. 513. 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 an action plan, with an 
implementation schedule--
            (1) to provide adequate oversight of repair stations (known 
        as Part 145 repair stations) and ensure that Administration-
        approved repair stations outside the United States are subject 
        to the same level of oversight and quality control as those 
        located in the United States; and
            (2) 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)(2) shall set forth the action the Administration 
will take under the plan--
            (1) to develop specific, clear, and meaningful inspection 
        checklists for the use of 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.

SEC. 514. NATIONAL SMALL COMMUNITY AIR SERVICE DEVELOPMENT OMBUDSMAN.

    (a) In General.--Subchapter II of chapter 417, as amended by 
section 353 of this Act, is amended by adding at the end the following:
``Sec. 41746. National Small Community Air Service Development 
              Ombudsman
    ``(a) Establishment.--There is established in the Department of 
Transportation the position of National Small Community Air Service 
Ombudsman (in this section referred to as the `Ombudsman'). The 
Secretary of Transportation shall appoint the Ombudsman. The Ombudsman 
shall report to the Secretary.
    ``(b) Purpose.--The Ombudsman, in consultation with officials from 
small communities in the United States, State aviation agencies, and 
State and local economic development agencies, shall develop strategies 
for retaining and enhancing the air service provided to small 
communities in the United States.
    ``(c) Outreach.--The Ombudsman shall solicit and receive comments 
from small communities regarding strategies for retaining and enhancing 
air service, and shall act as a liaison between the communities and 
Federal agencies for the purpose of developing such strategies.''
    (b) Conforming Amendment.--The chapter analysis for chapter 417 is 
amended by inserting after the item relating to section 47145 the 
following:

``47146. National small community air service development ombudsman.''.

SEC. 515. 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 9 
        members of whom--
                    (A) 3 members shall be appointed by the Secretary;
                    (B) 2 members shall be appointed by the Majority 
                Leader of the Senate;
                    (C) 1 member shall be appointed by the Minority 
                Leader of the Senate;
                    (D) 2 members shall be appointed by the Speaker of 
                the House of Representatives; and
                    (E) 1 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) 1 member shall be a representative of a 
                regional airline;
                    (B) 1 member shall be a representative of an FAA-
                designated small-hub airport; and
                    (C) 1 member shall be a representative of a State 
                aviation agency.
            (3) Terms.--Members shall be appointed for the life of the 
        Commission.
            (4) Vacancies.--A vacancy in the Commission shall be filled 
        in the manner in which the original appointment was made.
            (5) Travel expenses.--Members shall serve without pay but 
        shall receive travel expenses, including per diem in lieu of 
        subsistence, in accordance with subchapter I of chapter 57 of 
        title 5, United States Code.
    (c) Chairperson.--The Secretary shall designate, from among the 
individuals appointed under subsection (b)(1), an individual to serve 
as Chairperson of the Commission.
    (d) Duties.--
            (1) Study.--The Commission shall undertake a study of--
                    (A) the challenges faced by small communities in 
                the United States with respect to retaining and 
                enhancing their scheduled commercial air service; and
                    (B) whether the existing Federal programs charged 
                with helping small communities are adequate for them to 
                retain and enhance their existing air service.
            (2) Essential air service communities.--In conducting the 
        study, the Commission shall pay particular attention to the 
        state of scheduled commercial air service in communities 
        currently served by the Essential Air Service program.
    (e) Recommendations.--Based on the results of the study under 
subsection (d), the Commission shall make such recommendations as it 
considers necessary to--
            (1) improve the state of scheduled commercial air service 
        at small communities in the United States, especially 
        communities described in subsection (d)(2); and
            (2) improve the ability of small communities to retain and 
        enhance their existing air service.
    (f) Report.--Not later than 6 months after the date on which 
initial appointments of members to the Commission are completed, the 
Commission shall transmit to the President and Congress a report on the 
activities of the Commission, including recommendations made by the 
Commission under subsection (e).
    (g) Commission Panels.--The Chairperson 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, the head of any department or agency of the United 
        States may detail, on a reimbursable basis, any of the 
        personnel of that department or agency to the Commission to 
        assist it in carrying out its duties under this section.
            (3) Other staff and support.--Upon the request of the 
        Commission, or a panel of the Commission, the Secretary shall 
        provide the Commission or panel with professional and 
        administrative staff and other support, on a reimbursable 
        basis, to assist the Commission or panel in carrying out its 
        responsibilities.
    (i) Obtaining Official Data.--The Commission may secure directly 
from any department or agency of the United States information (other 
than information required by any statute of the United States to be 
kept confidential by such department or agency) necessary for the 
Commission to carry out its duties under this section. Upon request of 
the Chairperson, 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 of Transportation $250,000 to be used to 
fund the Commission.

SEC. 516. TRAINING CERTIFICATION FOR CABIN CREW.

    Section 44935 is amended by adding at the end the following:
    ``(g) Training Standards for Cabin Crew.--
            ``(1) In general.--The Administrator shall establish 
        standards for cabin crew training, consistent with the Homeland 
        Security Act of 2002, and the issuance of certification. The 
        Administrator shall require cabin crew members to complete a 
        cabin crew training courses approved by the Federal Aviation 
        Administration and the Transportation Security Administration.
            ``(2) Certification.--
                    ``(A) In general.--The Administrator shall provide 
                for the issuance of an appropriate certificate to each 
                individual who successfully completes such a course.
                    ``(B) Contents.--The cabin crew certificate shall--
                            ``(i) be numbered and recorded by the 
                        Administrator of the Federal Aviation 
                        Administration;
                            ``(ii) contain the name, address, and 
                        description of the individual to whom the 
                        certificate is issued; and
                            ``(iii) contain the name of the current air 
                        carrier employer of the certificate holder;
                            ``(iv) contain terms the Administrator 
                        determines are necessary to ensure safety in 
                        air commerce, including terms that the 
                        certificate shall remain valid unless the 
                        Administrator suspends or revokes the 
                        certificate; and
                            ``(v) designate the type and model of 
                        aircraft on which the certificate holder cabin 
                        crew member has successfully completed all 
                        Federal Aviation Administration and 
                        Transportation Security Administration required 
                        training in order to be assigned duties on 
                        board such type and model of aircraft.
            ``(3) Cabin crew defined.--In this subsection, the term 
        `cabin crew' means individuals working in an aircraft cabin on 
        board a transport category aircraft with 20 or more seats.''.

SEC. 517. AIRCRAFT MANUFACTURER INSURANCE.

    (a) In General.--Section 44302(f) is amended by adding at the end 
the following:
            ``(3) Aircraft manufacturers.--The Secretary may offer to 
        provide war and terrorism insurance to aircraft manufacturers 
        for loss or damage arising from the operation of an aircraft by 
        an air carrier, in excess of $50,000,000 in the aggregate or in 
        excess of such other amounts of available primary insurance, on 
        such terms and conditions as the Secretary may prescribe.''.
    (b) Conforming Amendments.--
            (1) Definition of aircraft manufacturer.--Section 44301 is 
        amended by adding at the end the following:
            ``(3) `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.''.
            (2) Coverage.--Section 44303(a) is amended by adding at the 
        end the following:
            ``(6) war and terrorism losses or damages of an aircraft 
        manufacturer arising from the operation of an aircraft by an 
        air carrier.''.

SEC. 518. GROUND-BASED PRECISION NAVIGATIONAL AIDS.

    (a) In General.--The Secretary of Transportation may establish a 
program for the installation, operation, and maintenance of ground-
based precision navigational aids for terrain-challenged airports. The 
program shall include provision for--
            (1) preventative and corrective maintenance for the life of 
        each system of such aids; and
            (2) requisite staffing and resources for the Federal 
        Aviation Administration's efficient maintenance of the program.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Transportation to carry out the 
program established under subsection (a) such sums as may be necessary.

SEC. 519. STANDBY POWER EFFICIENCY PROGRAM.

    (a) Establishment.--The Secretary of Transportation, in cooperation 
with the Secretary of Energy and, where applicable, the Secretary of 
Defense, may 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.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Transportation such sums as may be 
necessary for each of fiscal years 2004 through 2008 to carry out the 
provisions of this section.

SEC. 520. CERTAIN INTERIM AND FINAL RULES.

    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, as amended by section 
119(d) of that Act, is deemed to apply to, and to have been in effect 
with respect to, the authority of the Administrator of the Federal 
Aviation Administration with respect to the Interim Final Rule and 
Final Rule issued by the Administrator on May 30, 2000, and August 13, 
2001, respectively.

SEC. 521. AIR FARES FOR MEMBERS OF ARMED FORCES.

    It is the sense of the Senate that each United States air carrier 
should--
            (1) make every effort to allow active duty members of the 
        Armed Forces to purchase tickets, on a space-available basis, 
        for the lowest fares offered for the flights desired, without 
        regard to advance purchase requirements and other restrictions; 
        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, or penalties.

SEC. 522. MODIFICATION OF REQUIREMENTS REGARDING TRAINING TO OPERATE 
              AIRCRAFT.

    (a) In General.--Section 44939 of title 49, United States Code, is 
amended to read as follows:
``Sec. 44939. Training to operate certain aircraft
    ``(a) In General.--
            ``(1) Waiting period.--A person subject to regulation under 
        this part may provide training in the United States in the 
        operation of an aircraft to an individual who is 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 Under Secretary of Homeland Security for Border and 
        Transportation Security only if--
                    ``(A) that person has notified the Under Secretary 
                that the individual has requested such training and 
                furnished the Under Secretary with that individual's 
                identification in such form as the Under Secretary may 
                require; and
                    ``(B) the Under Secretary has not directed, within 
                30 days after being notified under subparagraph (A), 
                that person not to provide the requested training 
                because the Under Secretary has determined that the 
                individual presents a risk to aviation security or 
                national security.
            ``(2) Notification-only individuals.--
                    ``(A) In general.--The requirements of paragraph 
                (1) shall not apply to an alien individual who holds a 
                visa issued under title I of the Immigration and 
                Nationality Act (8 U.S.C. 1101 et seq.) and who--
                            ``(i) has earned a Federal Aviation 
                        Administration type rating in an aircraft or 
                        has undergone type-specific training, or
                            ``(ii) holds a current pilot's license or 
                        foreign equivalent commercial pilot's license 
                        that permits the person to fly an aircraft with 
                        a maximum certificated takeoff weight of more 
                        than 12,500 pounds as defined by the 
                        International Civil Aviation Organization in 
                        Annex 1 to the Convention on International 
                        Civil Aviation,
                if the person providing the training has notified the 
                Under Secretary that the individual has requested such 
                training and furnished the Under Secretary with that 
                individual's visa information.
                    ``(B) Exception.--Subparagraph (A) does not apply 
                to an alien individual whose airman's certificate has 
                been suspended or revoked under procedures established 
                by the Under Secretary.
            ``(3) Expedited processing.--The waiting period under 
        paragraph (1) shall be expedited for an individual who--
                    ``(A) has previously undergone a background records 
                check by the Foreign Terrorist Tracking Task Force;
                    ``(B) is employed by a foreign air carrier 
                certified under part 129 of title 49, Code of Federal 
                Regulations, that has a TSA 1546 approved security 
                program and who is undergoing recurrent flight 
                training;
                    ``(C) is a foreign military pilot endorsed by the 
                United States Department of Defense for flight 
                training; or
                    ``(D) who has unescorted access to a secured area 
                of an airport designated under section 
                44936(a)(1)(A)(ii).
            ``(4) Investigation authority.--In order to determine 
        whether an individual requesting training described in 
        paragraph (1) presents a risk to aviation security or national 
        security the Under Secretary is authorized to use the 
        employment investigation authority provided by section 
        44936(a)(1)(A) for individuals applying for a position in which 
        the individual has unescorted access to a secured area of an 
        airport designated under section 44936(a)(1)(A)(ii).
            ``(5) Fee.--
                    ``(A) In general.--The Under Secretary 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 Under Secretary 
                may adjust the maximum amount of the fee to reflect the 
                costs of such an investigation.
                    ``(B) Offset.--Notwithstanding section 3302 of 
                title 31, United States Code, any fee collected under 
                this section--
                            ``(i) shall be credited to the account in 
                        the Treasury from which the expenses were 
                        incurred and shall be available to the Under 
                        Secretary for those expenses; and
                            ``(ii) shall remain available until 
                        expended.
    ``(b) Interruption of Training.--If the Under Secretary, more than 
30 days after receiving notification under subsection (a)(1)(A) from a 
person providing training described in subsection (a)(1) or at any time 
after receiving notice from such a person under subsection (a)(2)(A), 
determines that an individual receiving such training presents a risk 
to aviation or national security, the Under Secretary shall immediately 
notify the person providing the training of the determination and that 
person shall immediately terminate the training.
    ``(c) Covered Training.--For purposes of subsection (a), the term -
`training'--
            ``(1) includes in-flight training, training in a simulator, 
        and any other form or aspect of training; but
            ``(2) does not include classroom instruction (also known as 
        ground school training), which may be provided during the 30-
        day period described in subsection (a)(1)(B).
    ``(d) Interagency Cooperation.--The Attorney General, the Director 
of Central Intelligence, and the Administrator of the Federal Aviation 
Administration shall cooperate with the Under Secretary in implementing 
this section.
    ``(e) Security Awareness Training for Employees.--The Under 
Secretary shall require flight schools to conduct a security awareness 
program for flight school employees, and for certified instructors who 
provide instruction for the flight school but who are not employees 
thereof, 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 Under Secretary of Homeland Security 
        for Border and Transportation 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 
        Under Secretary requires fingerprints in the administration of 
        that section, and shall transmit the fingerprints to the Under 
        Secretary or other agency designated by the Under Secretary. 
        The Attorney General and the Secretary of State shall cooperate 
        with the Under Secretary in carrying out this paragraph.
            (3) Use of united states facilities.--If the Under 
        Secretary requires fingerprinting in the administration of 
        section 44939 of title 49, United States Code, the Under 
        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. 523. EXEMPTION FOR JACKSON HOLE AIRPORT.

    (a) In General.--Notwithstanding chapter 475 of title 49, United 
States Code, or any other provision of law, if the Board of the Jackson 
Hole Airport in Wyoming and the Secretary of the Interior agree that 
Stage 3 aircraft technology represents a prudent and feasible 
technological advance which, if implemented at the Jackson Hole 
Airport, will result in a reduction in noise at Grand Teton National 
Park--
            (1) the Jackson Hole Airport may impose restrictions on, or 
        prohibit, the operation of Stage 2 aircraft weighing less than 
        75,000 pounds, with reasonable exemptions for public health and 
        safety;
            (2) the notice, study, and comment provisions of subchapter 
        II of chapter 475 of title 49, United States Code, and part 161 
        of title 14, Code of Federal Regulations, shall not apply to 
        the imposition of the restrictions;
            (3) the imposition of the restrictions shall not affect the 
        Airport's eligibility to receive a grant under title 49, United 
        States Code; and
            (4) the restrictions shall not be deemed to be 
        unreasonable, discriminatory, a violation of the assurances 
        required by section 47107(a) of title 49, United States Code, 
        or an undue burden on interstate commerce.
    (b) 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. 524. DISTANCE REQUIREMENT APPLICABLE TO ELIGIBILITY FOR ESSENTIAL 
              AIR SERVICE SUBSIDIES.

    (a) Measurement of Highway Mileage for Purposes of Determining 
Eligibility for Essential Air Service Subsidies.--
            (1) Determination of eligibility.--Subchapter II of Chapter 
        417 of title 49, United States Code, is amended by adding at 
        the end the following new section:
``Sec. 41746. Distance requirement applicable to eligibility for 
              essential air service subsidies
    ``(a) In General.--The Secretary shall not provide assistance under 
this subchapter with respect to a place in the 48 contiguous States 
that--
            ``(1) is less than 70 highway miles from the nearest hub 
        airport; or
            ``(2) requires a rate of subsidy per passenger in excess of 
        $200, unless such place is greater than 210 highway miles from 
        the nearest hub airport.
    ``(b) Determination of Mileage.--For purposes of Lancaster, 
Pennsylvania, the highway mileage between a place and the nearest hub 
airport is the highway mileage of the most commonly used route between 
the place and the hub airport. In identifying such route, the Secretary 
shall--
            ``(1) promulgate by regulation a standard for calculating 
        the mileage between Lancaster, Pennsylvania and a hub airport; 
        and
            ``(2) identify the most commonly used route for a community 
        by--
                    ``(A) consulting with the Governor of a State or 
                the Governor's designee; and
                    ``(B) considering the certification of the Governor 
                of a State or the Governor's designee as to the most 
                commonly used route.''.
            (2) Conforming amendment.--The analysis for subchapter II 
        of chapter 417 of title 49, United States Code, is amended by 
        inserting after the item relating to section 41745 the 
        following new item:

    ``41746. Distance requirement applicable to eligibility for 
                            essential air service subsidies.''.
    (b) Repeal.--The following provisions of law are repealed:
            (1) Section 332 of the Department of Transportation and 
        Related Agencies Appropriations Act, 2000 (49 U.S.C. 41731 
        note).
            (2) Section 205 of the Wendell H. Ford Aviation Investment 
        and Reform Act for the 21st Century (49 U.S.C. 41731 note).
            (3) Section 334 of the Department of Transportation and 
        Related Agencies Appropriations Act, 1999 (section 101(g) of 
        division A of the Omnibus Consolidated and Emergency 
        Supplemental Appropriations Act, 1999) (Public Law 105-277; 112 
        Stat. 2681-471).
    (c) Secretarial Review.--
            (1) Request for review.--Any community with respect to 
        which the Secretary has, between September 30, 1993, and the 
        date of the enactment of this Act, eliminated subsidies or 
        terminated subsidy eligibility 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, may request the Secretary to review such 
        action.
            (2) Eligibility determination.--Not later than 60 days 
        after receiving a request under subsection (i), the Secretary 
        shall--
                    (A) determine whether the community would have been 
                subject to such elimination of subsidies or termination 
                of eligibility under the distance requirement enacted 
                by the amendment made by subsection (g) of this bill to 
                subchapter II of chapter 417 of title 49, United States 
                Code; and
                    (B) issue a final order with respect to the 
                eligibility of such community for essential air service 
                subsidies under subchapter II of chapter 417 of title 
                49, United States Code, as amended by this Act.

SEC. 525. 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 economic losses 
as a result of the restrictions imposed by the Federal Government 
following the terrorist attacks on the United States that occurred on 
September 11, 2001:
            (1) General aviation entities that operate at Ronald Reagan 
        Washington National Airport.
            (2) Airports that are located within 15 miles of Ronald 
        Reagan Washington National Airport and were operating under 
        security restrictions on the date of enactment of this Act and 
        general aviation entities operating at those airports.
            (3) Any other general aviation entity that is prevented 
        from doing business or operating by an action of the Federal 
        Government prohibiting access to airspace by that entity.
    (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) provides services necessary for nonmilitary operations 
        under such part 91; or
            (3) 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, persons engaged in 
nonscheduled air taxi service or aircraft rental.
    (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. 526. 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. 527. PASS-THROUGH OF REFUNDED PASSENGER SECURITY FEES TO CODE-
              SHARE PARTNERS.

    (a) In General.--Within 30 days after the date of enactment of this 
Act, each United States flag air carrier that received a payment made 
under the second proviso of first appropriation in title IV of the 
Emergency Wartime Supplemental Appropriations Act, 2003 (Pub. L. 108-
011; 117 Stat. 604) shall transfer to each air carrier with which it 
had a code-share arrangement during the period covered by the passenger 
security fees remitted under that proviso an amount equal to that 
portion of the remittance under the proviso that was attributable to 
passenger security fees paid or collected by that code-share air 
carrier and taken into account in determining the amount of the payment 
to the United States flag air carrier.
    (b) DOT Inspector General Oversight.--The Inspector General of the 
Department of Transportation shall review the compliance of United 
States flag air carriers with subsection (a), including determinations 
of amounts, determinations of eligibility of code-share air carriers, 
and transfers of funds to such air carriers under subsection (a).
    (c) Certification.--The chief executive officer of each United 
States flag air carrier to which subsection (a) applies shall certify 
to the Under Secretary of Homeland Security for Border and 
Transportation Security, under penalty of perjury, the air carrier's 
compliance with subsection (a).

SEC. 528. AIR CARRIER CITIZENSHIP.

    Section 40102(a)(15)(C) of title 49, United States Code, is amended 
by inserting ``which is under the actual control of citizens of the 
United States,'' before ``and in which''.

SEC. 529. UNITED STATES PRESENCE IN GLOBAL AIR CARGO INDUSTRY.

    Section 41703 is amended by adding at the end the following new 
subsection:
    ``(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.''.

                   TITLE VI--SECOND CENTURY OF FLIGHT

SEC. 601. FINDINGS.

    The Congress finds the following:
            (1) Since 1990, the United States has lost more than 
        600,000 aerospace jobs.
            (2) Over the last year, approximately 100,000 airline 
        workers and aerospace workers have lost their jobs as a result 
        of the terrorist attacks in the United States on September 11, 
        2001, and the slowdown in the world economy.
            (3) The United States has revolutionized the way people 
        travel, developing new technologies and aircraft to move people 
        more efficiently and more safely.
            (4) Past Federal investment in aeronautics research and 
        development have benefited the economy and national security of 
        the United States and the quality of life of its citizens.
            (5) The total impact of civil aviation on the United States 
        economy exceeds $900,000,000,000 annually--9 percent of the 
        gross national product--and 11 million 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 America's highly skilled, 
        technologically qualified work force.
            (6) Aerospace technologies, products and services underpin 
        the advanced capabilities of our men and women in uniform and 
        those charged with homeland security.
            (7) Future growth in civil aviation increasingly will be 
        constrained by concerns related to aviation system safety and 
        security, aviation system capabilities, aircraft noise, 
        emissions, and fuel consumption.
            (8) The United States is in danger of losing its aerospace 
        leadership to international competitors aided by persistent 
        government intervention. Many governments take their funding 
        beyond basic technology development, choosing to fund product 
        development and often bring the product to market, even if the 
        products are not fully commercially viable. Moreover, 
        international competitors have recognized the importance of 
        noise, emission, fuel consumption, and constraints of the 
        aviation system and have established aggressive agendas for 
        addressing each of these concerns.
            (9) Efforts by the European Union, through a variety of 
        means, will challenge the United States' leadership position in 
        aerospace. A recent report outlined the European Union's goal 
        of becoming the world's leader in aviation and aeronautics by 
        the end of 2020, utilizing better coordination among research 
        programs, planning, and funding to accomplish this goal.
            (10) Revitalization and coordination of the United States' 
        efforts to maintain its leadership in aviation and aeronautics 
        are critical and must begin now.
            (11) 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 America's 
                leadership and strength throughout the 21st century;
                    (B) Aerospace will play an integral role in our 
                economy, our security, and our mobility; and
                    (C) global leadership in aerospace is a national 
                imperative.
            (12) Despite the downturn in the global economy, Federal 
        Aviation Administration projections indicate that upwards of 1 
        billion people will fly annually by 2013. Efforts must begin 
        now to prepare for future growth in the number of airline 
        passengers.
            (13) 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.
            (14) Current and projected levels of Federal investment in 
        aeronautics research and development are not sufficient to 
        address concerns related to the growth of aviation.

        Subtitle A--The Office of Aerospace and Aviation Liaison

SEC. 621. OFFICE OF AEROSPACE AND AVIATION LIAISON.

    (a) Establishment.--There is established within the Department of 
Transportation an Office of Aerospace and Aviation Liaison.
    (b) Function.--The Office shall--
            (1) coordinate aviation and aeronautics research programs 
        to achieve the goal of more effective and directed programs 
        that will result in applicable research;
            (2) coordinate goals and priorities and coordinate research 
        activities within the Federal Government with United States 
        aviation and aeronautical firms;
            (3) coordinate 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;
            (4) facilitate the transfer of technology from research 
        programs such as the National Aeronautics and Space 
        Administration program established under section 681 and the 
        Department of Defense Advanced Research Projects Agency program 
        to Federal agencies with operational responsibilities and to 
        the private sector;
            (5) review 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;
            (6) review aircraft operating procedures intended to reduce 
        noise and emissions, identify and coordinate research efforts 
        on aircraft noise and emissions reduction, and ensure that 
        aircraft noise and emissions reduction regulatory measures are 
        coordinated; and
            (7) work with the National Air Traffic Management System 
        Development Office to coordinate research needs and 
        applications for the next generation air traffic management 
        system.
    (c) Public-Private Participation.--In carrying out its functions 
under this section, the Office shall consult with, and ensure 
participation by, the private sector (including representatives of 
general aviation, commercial aviation, and the space industry), members 
of the public, and other interested parties.
    (d) Reporting Requirements.--
            (1) Initial status report.--Not later than 90 days after 
        the date of enactment of this Act, the Secretary of 
        Transportation shall submit a report to the Senate Committee on 
        Commerce, Science, and Transportation and the House of 
        Representatives Committee on Transportation and Infrastructure 
        on the status of the establishment of the Office of Aerospace 
        and Aviation Liaison, including the name of the program 
        manager, the list of staff from each participating department 
        or agency, names of the national team participants, and the 
        schedule for future actions.
            (2) Plan.--The Office shall submit to the Senate Committee 
        on Commerce, Science, and Transportation and the House of 
        Representatives Committee on Science a plan for implementing 
        paragraphs (1) and (2) of subsection (b) and a proposed budget 
        for implementing the plan.
            (3) Annual report.--The Office shall submit to the Senate 
        Committee on Commerce, Science, and Transportation, the House 
        of Representatives Committee on Transportation and 
        Infrastructure, and the House of Representatives Committee on 
        Science an annual report that--
                    (A) contains a unified budget that combines the 
                budgets of each program coordinated by the Office; and
                    (B) describes the coordination activities of the 
                Office during the preceding year.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Transportation $2,000,000 for fiscal 
years 2004 and 2005 to carry out this section, such sums to remain 
available until expended.

SEC. 622. NATIONAL AIR TRAFFIC MANAGEMENT SYSTEM DEVELOPMENT OFFICE.

    (a) Establishment.--There is established within the Federal 
Aviation Administration a National Air Traffic Management System 
Development Office, the head of which shall report directly to the 
Administrator.
    (b) Development of Next Generation Air Traffic Management System.--
            (1) In general.--The Office shall develop a next generation 
        air traffic management system plan for the United States that 
        will--
                    (A) transform the national airspace system to meet 
                air transportation mobility, efficiency, and capacity 
                needs beyond those currently included in the Federal 
                Aviation Administration's operational evolution plan;
                    (B) result in a national airspace system that can 
                safely and efficiently accommodate the needs of all 
                users;
                    (C) build upon current air traffic management and 
                infrastructure initiatives;
                    (D) improve the security, safety, quality, and 
                affordability of aviation services;
                    (E) utilize a system-of-systems, multi-agency 
                approach to leverage investments in civil aviation, 
                homeland security, and national security;
                    (F) develop a highly integrated, secure 
                architecture to enable common situational awareness for 
                all appropriate system users; and
                    (G) ensure seamless global operations for system 
                users, to the maximum extent possible.
            (2) Multi-agency and stakeholder involvement.--In 
        developing the system, the Office shall--
                    (A) include staff from the Federal Aviation 
                Administration, the National Aeronautics and Space 
                Administration, the Department of Homeland Security, 
                the Department of Defense, the Department of Commerce, 
                and other Federal agencies and departments determined 
                by the Secretary of Transportation to have an important 
                interest in, or responsibility for, other aspects of 
                the system; and
                    (B) consult with, and ensure participation by, the 
                private sector (including representatives of general 
                aviation, commercial aviation, and the space industry), 
                members of the public, and other interested parties.
            (3) Development criteria and requirements.--In developing 
        the next generation air traffic management system plan under 
        paragraph (1), the Office shall--
                    (A) develop system performance requirements;
                    (B) select an operational concept to meet system 
                performance requirements for all system users;
                    (C) ensure integration of civil and military system 
                requirements, balancing safety, security, and 
                efficiency, in order to leverage Federal funding;
                    (D) utilize modeling, simulation, and analytical 
                tools to quantify and validate system performance and 
                benefits;
                    (E) develop a transition plan, including necessary 
                regulatory aspects, that ensures operational 
                achievability for system operators;
                    (F) develop transition requirements for ongoing 
                modernization programs, if necessary;
                    (G) develop a schedule for aircraft equipment 
                implementation and appropriate benefits and incentives 
                to make that schedule achievable; and
                    (H) assess, as part of its function within the 
                Office of Aeronautical and Aviation Liaison, the 
                technical readiness of appropriate research 
                technological advances for integration of such research 
                and advances into the plan.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Administrator of the Federal Aviation 
Administration $300,000,000 for the period beginning with fiscal year 
2004 and ending with fiscal year 2010 to carry out this section.

SEC. 623. REPORT ON CERTAIN MARKET DEVELOPMENTS AND GOVERNMENT 
              POLICIES.

    Within 6 months after the date of enactment of this Act, the 
Department of Transportation's Office of Aerospace and Aviation 
liaison, in cooperation with 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. 624. TRANSFER OF CERTAIN AIR TRAFFIC CONTROL FUNCTIONS PROHIBITED.

    (a) In General.--The Secretary of Transportation may not authorize 
the transfer to a private entity or to a public entity other than the 
United States Government of--
            (1) the air traffic separation and control functions 
        operated by the Federal Aviation Administration on the date of 
        enactment of this Act; or
            (2) the maintenance of certifiable systems and other 
        functions related to certification of national airspace systems 
        and services operated by the Federal Aviation Administration on 
        the date of enactment of this Act or flight service station 
        personnel.
    (b) Contract Tower Program.--Subsection (a)(1) shall not apply to a 
Federal Aviation Administration air traffic control tower operated 
under the contract tower program as of the date of enactment of this 
Act.

                     Subtitle B--Technical Programs

SEC. 641. AEROSPACE AND AVIATION SAFETY WORKFORCE INITIATIVE.

    (a) In General.--The Administrator of the National Aeronautics and 
Space Administration and the Administrator of the Federal Aviation 
Administration shall establish a joint program of competitive, merit-
based grants for eligible applicants to increase the number of students 
studying toward and completing technical training programs, certificate 
programs, and associate's, bachelor's, master's, or doctorate degrees 
in fields related to aerospace and aviation safety.
    (b) Increased Participation Goal.--In selecting projects under this 
paragraph, the Director shall consider means of increasing the number 
of students studying toward and completing technical training and 
apprenticeship programs, certificate programs, and associate's or 
bachelor's degrees in fields related to aerospace and aviation safety 
who are individuals identified in section 33 or 34 of the Science and 
Engineering Equal Opportunities Act (42 U.S.C. 1885a or 1885b).
    (c) Supportable Projects.--The types of projects the Administrators 
may consider under this paragraph include those that promote high 
quality--
            (1) interdisciplinary teaching;
            (2) undergraduate-conducted research;
            (3) mentor relationships for students;
            (4) graduate programs;
            (5) bridge programs that enable students at community 
        colleges to matriculate directly into baccalaureate aerospace 
        and aviation safety related programs;
            (6) internships, including mentoring programs, carried out 
        in partnership with the aerospace and aviation industry;
            (7) technical training and apprenticeship that prepares 
        students for careers in aerospace manufacturing or operations; 
        and
            (8) innovative uses of digital technologies, particularly 
        at institutions of higher education that serve high numbers or 
        percentages of economically disadvantaged students.
    (d) Grantee Requirements.--In developing grant requirements under 
this section, the Administrators shall consider means, developed in 
concert with applicants, of increasing the number of students studying 
toward and completing technical training and apprenticeship programs, 
certificate programs, and associate's or bachelor's degrees in fields 
related to aerospace and aviation safety.
    (e) Definitions.--In this section:
            (1) Eligible applicant defined.--The term ``eligible 
        applicant'' means--
                    (A) an institution of higher education;
                    (B) a consortium of institutions of higher 
                education; or
                    (C) a partnership between--
                            (i) an institution of higher education or a 
                        consortium of such institutions; and
                            (ii) a nonprofit organization, a State or 
                        local government, or a private company, with 
                        demonstrated experience and effectiveness in 
                        aerospace education.
            (2) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning given that 
        term by subsection (a) of section 101 of the Higher Education 
        Act of 1965 (20 U.S.C. 1001(a)), and includes an institution 
        described in subsection (b) of that section.
    (f) Authorization of Appropriations.--
            (1) NASA.--There are authorized to be appropriated to the 
        Administrator of the National Aeronautics and Space 
        Administration such sums as may be necessary for fiscal year 
        2004 to carry out this section.
            (2) FAA.--There are authorized to be appropriated to the 
        Administrator of the Federal Aviation Administration such sums 
        as may be necessary for fiscal year 2004 to carry out this 
        section.
    (g) Report, Budget, and Plan.--Within 180 days after the date of 
enactment of this Act, the Administrators jointly shall submit to the 
Senate Committee on Commerce, Science, and Transportation and the House 
of Representatives Committee on Transportation and Infrastructure a 
report setting forth--
            (1) recommendations as to whether the program authorized by 
        this section should be extended for multiple years;
            (2) a budget for such a multi-year program; and
            (3) a plan for conducting such a program.

SEC. 642. SCHOLARSHIPS FOR SERVICE.

    (a) In General.--The Administrator of the National Aeronautics and 
Space Administration and the Administrator of the Federal Aviation 
Administration shall develop a joint student loan program for fulltime 
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.
    (b) Internships.--The Administrators may provide temporary 
internships to such students.
    (c) Authorization of Appropriations.--
            (1) NASA.--There are authorized to be appropriated to the 
        Administrator of the National Aeronautics and Space 
        Administration such sums as may be necessary for fiscal year 
        2004 to carry out this section.
            (2) FAA.--There are authorized to be appropriated to the 
        Administrator of the Federal Aviation Administration such sums 
        as may be necessary for fiscal year 2004 to carry out this 
        section.
    (g) Report, Budget, and Plan.--Within 180 days after the date of 
enactment of this Act, the Administrators jointly shall submit to the 
Senate Committee on Commerce, Science, and Transportation and the House 
of Representatives Committee on Transportation and Infrastructure a 
report setting forth--
            (1) recommendations as to whether the program authorized by 
        this section should be extended for multiple years;
            (2) a budget for such a multi-year program; and
            (3) a plan for conducting such a program.

         Subtitle C--FAA Research, Engineering, and Development

SEC. 661. RESEARCH PROGRAM TO IMPROVE AIRFIELD PAVEMENTS.

    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 rigid concrete airfield 
pavements to aid in the development of safer, more cost-effective, and 
more durable airfield pavements. The Administrator may use grants or 
cooperative agreements in carrying out this section. 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. 662. 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.

SEC. 663. ASSESSMENT OF WAKE TURBULENCE RESEARCH AND DEVELOPMENT 
              PROGRAM.

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

SEC. 664. 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. 665. INTERNATIONAL ROLE OF THE FAA.

    Section 40101(d) is amended by adding at the end the following:
            ``(8) 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 to promote and achieve global improvements in the 
        safety, efficiency, and environmental effect of air travel.''.

SEC. 666. FAA REPORT ON OTHER NATIONS' SAFETY AND TECHNOLOGICAL 
              ADVANCEMENTS.

    The Administrator of the Federal Aviation Administration shall 
review aviation and aeronautical safety, and research funding and 
technological actions in other countries. The Administrator shall 
submit a report to the Committee on Science of the House of 
Representatives and to the Committee on Commerce, Science, and 
Transportation of the Senate, together with any recommendations as to 
how such activities might be utilized in the United States.

SEC. 667. 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. 668. PILOT PROGRAM TO PROVIDE INCENTIVES FOR DEVELOPMENT OF NEW 
              TECHNOLOGIES.

    (a) In General.--The Administrator of the Federal Aviation 
Administration may conduct a limited 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 take-offs and landings.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Administrator $500,000 for fiscal year 2004.

SEC. 669. 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, including the use of 
polymeric composites in large transport aircraft. 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 are authorized to be 
appropriated to the Administrator $500,000 for fiscal year 2004 to 
carry out this section.

SEC. 670. FAA CERTIFICATION OF DESIGN ORGANIZATIONS.

    (a) General Authority To Issue Certificates.--Section 44702(a) is 
amended by inserting ``design organization certificates,'' after 
``airman certificates,''.
    (b) Design Organization Certificates.--
            (1) In general.--Section 44704 is amended--
                    (A) by striking the section heading and inserting 
                the following:
``Sec. 44704. Design organization certificates, type certificates, 
              production certificates, and airworthiness 
certificates'' ;
                    (B) by redesignating subsections (a) through (d) as 
                subsections (b) through (e);
                    (C) by inserting before subsection (b) the 
                following:
    ``(a) Design Organization Certificates.--
            ``(1) Plan.--Within 3 years after the date of enactment of 
        the Aviation Investment and Revitalization Vision Act, the 
        Administrator of the Federal Aviation Administration shall 
        submit a plan to the Senate Committee on Commerce, Science, and 
        Transportation and the House of Representatives Committee on 
        Transportation and Infrastructure for the development and 
        oversight of a system for certification of design organizations 
        under paragraph (2) that ensures that the system meets the 
        highest standards of safety.
            ``(2) Implementation of plan.--Within 5 years after the 
        date of enactment of the Aviation Investment and Revitalization 
        Vision Act, the Administrator of the Federal Aviation 
        Administration may commence the issuance of design organization 
        certificates under paragraph (3) to authorize design 
        organizations 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.
            ``(3) Issuance of certificates.--On receiving an 
        application for a design organization certificate, the 
        Administrator shall examine and rate the design organization in 
        accordance with the regulations prescribed by the Administrator 
        to determine that 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 
        that section. The Administrator shall include in a design 
        organization certificate terms required in the interest of 
        safety.
            ``(4) No effect on power of revocation.--Nothing in this 
        subsection affects the authority of the Secretary of 
        Transportation to revoke a certificate.'';
                    (D) by striking subsection (b), as redesignated, 
                and inserting the following:
    ``(b) Type Certificates.--
            ``(1) In general.--The Administrator may issue a type 
        certificate for an aircraft, aircraft engine, or propeller, or 
        for an appliance specified under paragraph (2)(A) of this 
        subsection--
                    ``(A) when the Administrator finds that the 
                aircraft, aircraft engine, or propeller, or appliance 
                is properly designed and manufactured, performs 
                properly, and meets the regulations and minimum 
                standards prescribed under section 44701(a) of this 
                title; or
                    ``(B) based on a certification of compliance made 
                by a design organization certificated under subsection 
                (a).
            ``(2) Investigation and hearing.--On receiving an 
        application for a type certificate, the Administrator shall 
        investigate the application and may conduct a hearing. The 
        Administrator shall make, or require the applicant to make, 
        tests the Administrator considers necessary in the interest of 
        safety.''.
    (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) Chapter analysis.--The chapter analysis for chapter 447 
        is amended by striking the item relating to section 44704 and 
        inserting the following:

``44704. Design organization certificates, type certificates, 
                            production certificates, and airworthiness 
                            certificates.''.
            (2) Cross reference.--Section 44715(a)(3) is amended by 
        striking ``44704(a)'' and inserting ``44704(b)''.

SEC. 671. REPORT ON LONG TERM ENVIRONMENTAL IMPROVEMENTS.

    (a) In General.--The Administrator of the Federal Aviation 
Administration, in consultation with the Administrator of the National 
Aeronautics and Space Administration and the head of the Department of 
Transportation's Office of Aerospace and Aviation Liaison, 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 combuster 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 Administrator 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 are authorized to be 
appropriated to the Administrator of the Federal Aviation 
Administration $500,000 for fiscal year 2004 to carry out this section.

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

SEC. 701. 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, 2006'', and
            (2) by inserting before the semicolon at the end of 
        subparagraph (A) the following: ``or the Aviation Investment 
        and Revitalization Vision 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, 2006''.

            Attest:

                                                             Secretary.
108th CONGRESS

  1st Session

                               H. R. 2115

_______________________________________________________________________

                               AMENDMENT
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