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[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2115 Reported in House (RH)]

                                                  Union Calendar No. 72
108th CONGRESS
  1st Session
                                H. R. 2115

                          [Report No. 108-143]

To amend title 49, United States Code, to reauthorize programs for the 
        Federal Aviation Administration, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              May 15, 2003

   Mr. Young of Alaska (for himself, Mr. Mica, Mr. Oberstar, and Mr. 
   DeFazio) introduced the following bill; which was referred to the 
             Committee on Transportation and Infrastructure

                              June 6, 2003

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
[For text of introduced bill, see copy of bill as introduced on May 15, 
                                 2003]

_______________________________________________________________________

                                 A BILL

 
To amend title 49, United States Code, to reauthorize programs for the 
        Federal Aviation Administration, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Flight 100--
Century of Aviation Reauthorization Act''.
    (b) Table of Contents.--

Sec. 1. Short title; table of contents.
Sec. 2. Amendments to title 49, United States Code.
Sec. 3. Effective date.

                        TITLE I--AUTHORIZATIONS

Sec. 101. Federal Aviation Administration operations.
Sec. 102. Air navigation facilities and equipment.
Sec. 103. Airport planning and development and noise compatibility 
                            planning and programs.
Sec. 104. Additional reauthorizations.
Sec. 105. Insurance.
Sec. 106. Pilot program for innovative financing for terminal 
                            automation replacement systems.

                 TITLE II--AIRPORT PROJECT STREAMLINING

Sec. 201. Short title.
Sec. 202. Findings.
Sec. 203. Promotion of new runways.
Sec. 204. Airport project streamlining.
Sec. 205. Governor's certificate.
Sec. 206. Construction of certain airport capacity projects.
Sec. 207. Limitations.
Sec. 208. Relationship to other requirements.

                   TITLE III--FEDERAL AVIATION REFORM

Sec. 301. Management advisory committee members.
Sec. 302. Reorganization of the Air Traffic Services Subcommittee.
Sec. 303. Clarification of the responsibilities of the Chief Operating 
                            Officer.
Sec. 304. Small Business Ombudsman.
Sec. 305. FAA purchase cards.

                 TITLE IV--AIRLINE SERVICE IMPROVEMENTS

Sec. 401. Improvement of aviation information collection.
Sec. 402. Data on incidents and complaints involving passenger and 
                            baggage security screening.
Sec. 403. Definitions.
Sec. 404. Clarifications to procurement authority.
Sec. 405. Low-emission airport vehicles and ground support equipment.
Sec. 406. Streamlining of the passenger facility fee program.
Sec. 407. Financial management of passenger facility fees.
Sec. 408. Government contracting for air transportation.
Sec. 409. Overflights of national parks.
Sec. 410. Collaborative decisionmaking pilot program.
Sec. 411. Availability of aircraft accident site information.
Sec. 412. Slot exemptions at Ronald Reagan Washington National Airport.
Sec. 413. Notice concerning aircraft assembly.
Sec. 414. Special rule to promote air service to small communities.
Sec. 415. Small community air service.
Sec. 416. Type certificates.
Sec. 417. Design organization certificates.
Sec. 418. Counterfeit or fraudulently represented parts violations.
Sec. 419. Runway safety standards.
Sec. 420. Availability of maintenance information.
Sec. 421. Certificate actions in response to a security threat.
Sec. 422. Flight attendant certification.
Sec. 423. Civil penalty for closure of an airport without providing 
                            sufficient notice.
Sec. 424. Noise exposure maps.
Sec. 425. Amendment of general fee schedule provision.
Sec. 426. Improvement of curriculum standards for aviation maintenance 
                            technicians.
Sec. 427. Task force on future of air transportation system.
Sec. 428. Air quality in aircraft cabins.
Sec. 429. Recommendations concerning travel agents.
Sec. 430. Task force on enhanced transfer of applications of technology 
                            for military aircraft to civilian aircraft.
Sec. 431. Reimbursement for losses incurred by general aviation 
                            entities.
Sec. 432. Impasse procedures for National Association of Air Traffic 
                            Specialists.
Sec. 433. FAA inspector training.
Sec. 434. Prohibition on air traffic control privatization.
Sec. 435. Airfares for members of the Armed Forces.
Sec. 436. Air carriers required to honor tickets for suspended air 
                            service.
Sec. 437. International air show.
Sec. 438. Definition of air traffic controller.
Sec. 439. Justification for air defense identification zone.
Sec. 440. International air transportation.
Sec. 441. Reimbursement of air carriers for certain screening and 
                            related activities.
Sec. 442. General aviation flights at Ronald Reagan Washington National 
                            Airport.

                      TITLE V--AIRPORT DEVELOPMENT

Sec. 501. Definitions.
Sec. 502. Replacement of baggage conveyor systems.
Sec. 503. Security costs at small airports.
Sec. 504. Withholding of program application approval.
Sec. 505. Runway safety areas.
Sec. 506. Disposition of land acquired for noise compatibility 
                            purposes.
Sec. 507. Grant assurances.
Sec. 508. Allowable project costs.
Sec. 509. Apportionments to primary airports.
Sec. 510. Cargo airports.
Sec. 511. Considerations in making discretionary grants.
Sec. 512. Flexible funding for nonprimary airport apportionments.
Sec. 513. Use of apportioned amounts.
Sec. 514. Military airport program.
Sec. 515. Terminal development costs.
Sec. 516. Contract towers.
Sec. 517. Airport safety data collection.
Sec. 518. Airport privatization pilot program.
Sec. 519. Innovative financing techniques.
Sec. 520. Airport security program.
Sec. 521. Low-emission airport vehicles and infrastructure.
Sec. 522. Compatible land use planning and projects by State and local 
                            governments.
Sec. 523. Prohibition on requiring airports to provide rent-free space 
                            for Federal Aviation Administration.
Sec. 524. Midway Island Airport.

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

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

SEC. 3. EFFECTIVE DATE.

    Except as otherwise expressly provided, this Act and the amendments 
made by this Act shall be effective on the date of enactment of this 
Act.

                        TITLE I--AUTHORIZATIONS

SEC. 101. FEDERAL AVIATION ADMINISTRATION OPERATIONS.

    (a) In General.--Section 106(k) is amended to read as follows:
    ``(k) Authorization of Appropriations.--
            ``(1) Salaries, operations, and maintenance.--There is 
        authorized to be appropriated to the Secretary of 
        Transportation for salaries, operations, and maintenance of the 
        Administration--
                    ``(A) $7,591,000,000 for fiscal year 2004;
                    ``(B) $7,732,000,000 for fiscal year 2005;
                    ``(C) $7,889,000,000 for fiscal year 2006; and
                    ``(D) $8,064,000,000 for fiscal year 2007.
        Such sums shall remain available until expended.
            ``(2) Operation of center for management and development.--
        Out of amounts appropriated under paragraph (1), such sums as 
        may be necessary may be expended by the Center for Management 
        Development of the Federal Aviation Administration to operate 
        at least 200 courses each year and to support associated 
        student travel for both residential and field courses.
            ``(3) Air traffic management system.--Out of amounts 
        appropriated under paragraph (1), such sums as may be necessary 
        may be expended by the Federal Aviation Administration for the 
        establishment and operation of a new office to develop, in 
        coordination with the Department of Defense, the National 
        Aeronautics and Space Administration, and the Department of 
        Homeland Security, the next generation air traffic management 
        system and a transition plan for the implementation of that 
        system. The office shall be known as the `Next Generation Air 
        Transportation System Joint Program Office'.
            ``(4) Helicopter and tiltrotor procedures.--Out of amounts 
        appropriated under paragraph (1), such sums as may be necessary 
        may be expended by the Federal Aviation Administration for the 
        establishment of helicopter and tiltrotor approach and 
        departure procedures using advanced technologies, such as the 
        Global Positioning System and automatic dependent surveillance, 
        to permit operations in adverse weather conditions to meet the 
        needs of air ambulance services.
            ``(5) Additional air traffic controllers.--Out of amounts 
        appropriated under paragraph (1), such sums as may be necessary 
        may be expended to hire additional air traffic controllers in 
        order to meet increasing air traffic demands and to address the 
        anticipated increase in the retirement of experienced air 
        traffic controllers.
            ``(6) Completion of alaska aviation safety project.--Out of 
        amounts appropriated under paragraph (1), $6,000,000 may be 
        expended for the completion of the Alaska aviation safety 
        project with respect to the 3 dimensional mapping of Alaska's 
        main aviation corridors.
            ``(7) Aviation safety reporting system.--Out of amounts 
        appropriated under paragraph (1), $3,400,000 may be expended on 
        the Aviation Safety Reporting System.''.
    (b) Airline Data and Analysis.--There is authorized to be 
appropriated to the Secretary of Transportation, out of the Airport and 
Airway Trust Fund established by section 9502 of the Internal Revenue 
Code of 1986 (26 U.S.C. 9502), $3,971,000 for fiscal year 2004, 
$4,045,000 for fiscal year 2005, $4,127,000 for fiscal year 2006, and 
$4,219,000 for fiscal year 2007 to gather airline data and conduct 
analyses of such data in the Bureau of Transportation Statistics of the 
Department of Transportation.
    (c) Human Capital Workforce Strategy.--
            (1) Development.--The Administrator of the Federal Aviation 
        Administration shall develop a comprehensive human capital 
        workforce strategy to determine the most effective method for 
        addressing the need for more air traffic controllers that is 
        called for in the June 2002 report of the General Accounting 
        Office.
            (2) Completion date.--The Administrator shall complete 
        development of the strategy not later than 1 year after the 
        date of enactment of this Act.
            (3) Report.--Not later than 30 days after the date on which 
        the strategy is completed, the Administrator shall transmit to 
        Congress a report describing the strategy.
    (d) Goals and Objectives of Aviation Safety Reporting System.--Not 
later than 90 days after the date of enactment of this Act, the 
Administrator shall transmit to Congress a report on the long-term 
goals and objectives of the Aviation Safety Reporting System and how 
such system interrelates with other safety reporting systems of the 
Federal Government.

SEC. 102. AIR NAVIGATION FACILITIES AND EQUIPMENT.

    Section 48101 is amended--
            (1) in subsection (a) by striking paragraphs (1) through 
        (5) and inserting the following:
            ``(1) $3,138,000,000 for fiscal year 2004;
            ``(2) $2,993,000,000 for fiscal year 2005;
            ``(3) $3,053,000,000 for fiscal year 2006; and
            ``(4) $3,110,000,000 for fiscal year 2007.'';
            (2) by striking subsection (b);
            (3) by redesignating (c) as subsection (b);
            (4) by striking subsections (d) and (e) and inserting the 
        following:
    ``(c) Enhanced Safety and Security for Aircraft Operations in the 
Gulf of Mexico.--Of amounts appropriated under subsection (a), such 
sums as may be necessary for fiscal years 2004 through 2007 may be used 
to expand and improve the safety, efficiency, and security of air 
traffic control, navigation, low altitude communications and 
surveillance, and weather services in the Gulf of Mexico.
    ``(d) Operational Benefits of Wake Vortex Advisory System.--Of 
amounts appropriated under subsection (a), $20,000,000 for each of 
fiscal years 2004 through 2007 may be used to document and demonstrate 
the operational benefits of a wake vortex advisory system.
    ``(e) Ground-Based Precision Navigational Aids.--Of amounts 
appropriated under subsection (a), $20,000,000 for each of fiscal years 
2004 to 2007 may be used to establish a program for the installation, 
operation, and maintenance of a closed-loop precision approach aid 
designed to improve aircraft accessibility at mountainous airports with 
limited land if the approach aid is able to provide curved and 
segmented approach guidance for noise abatement purposes and has been 
certified or approved by the Administrator.''; and
            (5) in subsection (f)--
                    (A) by striking ``for fiscal years beginning after 
                September 30, 2000''; and
                    (B) by inserting ``may be used'' after 
                ``necessary''.

SEC. 103. AIRPORT PLANNING AND DEVELOPMENT AND NOISE COMPATIBILITY 
              PLANNING AND PROGRAMS.

    (a) Authorization.--Section 48103 is amended--
            (1) by striking ``September 30, 1998'' and inserting 
        ``September 30, 2003''; and
            (2) by striking paragraphs (1) through (5) and inserting:
            ``(1) $3,400,000,000 for fiscal year 2004;
            ``(2) $3,600,000,000 for fiscal year 2005;
            ``(3) $3,800,000,000 for fiscal year 2006; and
            ``(4) $4,000,000,000 for fiscal year 2007.''.
    (b) Obligational Authority.--Section 47104(c) is amended by 
striking ``September 30, 2003'' and inserting ``September 30, 2007''.

SEC. 104. ADDITIONAL REAUTHORIZATIONS.

    (a) Contract Air Traffic Control Tower Pilot Program.--Section 
47124(b)(3)(E) is amended by striking ``$6,000,000 per fiscal year'' 
and inserting ``$6,500,000 for fiscal year 2004, $7,000,000 for fiscal 
year 2005, $7,500,000 for fiscal year 2006, and $8,000,000 for fiscal 
year 2007''.
    (b) Small Community Air Service.--Section 41743(e)(2) is amended--
            (1) by striking ``and'' the first place it appears and 
        inserting a comma; and
            (2) by inserting after ``2003'' the following ``, and 
        $35,000,000 for each of fiscal years 2004 through 2008''.
    (c) Regional Air Service Incentive Program.--Section 41766 is 
amended by striking ``2003'' and inserting ``2007''.
    (d) Funding for Aviation Programs.--Section 106 of the Wendell H. 
Ford Aviation Investment and Reform Act for the 21st Century (49 U.S.C. 
48101 note) is amended by striking ``2003'' each place it appears and 
inserting ``2007''.
    (e) Design-Build Contracting.--Section 139(e) of the Wendell H. 
Ford Aviation Investment and Reform Act for the 21st Century (49 U.S.C. 
47104 note) is amended by striking ``2003'' and inserting ``2007''.
    (f) Metropolitan Washington Airports Authority.--Section 49108 is 
amended by striking ``2004'' and inserting ``2007''.

SEC. 105. INSURANCE.

    (a) Termination.--Section 44310 is amended to read as follows:
``Sec. 44310. Termination date
    ``Effective December 31, 2007, the authority of the Secretary of 
Transportation to provide insurance and reinsurance under this chapter 
shall be limited to--
            ``(1) the operation of an aircraft by an air carrier or 
        foreign air carrier in foreign air commerce or between at least 
        2 points, all of which are outside the United States; and
            ``(2) insurance obtained by a department, agency, or 
        instrumentality of the United States under section 44305.''.
    (b) Extension of Policies.--Section 44302(f)(1) is amended by 
striking ``through December 31, 2004,'' and inserting ``thereafter''.
    (c) Aircraft Manufacturer Liability for Third Party Claims Arising 
Out of Acts of Terrorism.--Section 44303(b) is amended by adding at the 
end the following: ``The Secretary may extend the provisions of this 
subsection to the United States manufacturer (as defined in section 
44310) of the aircraft of the air carrier involved.''.
    (d) Vendors, Agents, Subcontractors, and Manufacturers.--
            (1) In general.--Chapter 443 is amended--
                    (A) by redesignating section 44310 (as amended by 
                subsection (a) of this section) as section 44311; and
                    (B) by inserting after section 44309 the following:
``Sec. 44310. Vendors, agents, subcontractors, and manufacturers
    ``(a) In General.--The Secretary of Transportation may extend the 
application of any provision of this chapter to a loss by a vendor, 
agent, and subcontractor of an air carrier and a United States 
manufacturer of an aircraft used by an air carrier but only to the 
extent that the loss involved an aircraft of an air carrier.
    ``(b) United States Manufacturer Defined.--In this section, the 
term `United States manufacturer' means a manufacturer incorporated 
under the laws of a State of the United States and having its principal 
place of business in the United States.''.
            (2) Conforming amendment.--The analysis for chapter 443 is 
        amended by striking the item relating to section 44310 and 
        inserting the following:

``44310. Vendors, agents, subcontractors, and manufacturers.
``44311. Termination date.''.
    (e) Technical Corrections.--Effective November 19, 2001, section 
124(b) of the Aviation and Transportation Security Act (115 Stat. 631) 
is amended by striking ``to carry out foreign policy'' and inserting 
``to carry out the foreign policy''.

SEC. 106. PILOT PROGRAM FOR INNOVATIVE FINANCING FOR TERMINAL 
              AUTOMATION REPLACEMENT SYSTEMS.

    (a) In General.--In order to test the cost-effectiveness and 
feasibility of long-term financing of modernization of major air 
traffic control systems, the Administrator of the Federal Aviation 
Administration may establish a pilot program to test innovative 
financing techniques through amending a contract, subject to section 
1341 of title 31, United States Code, of more than one, but not more 
than 20, fiscal years to purchase and install terminal automation 
replacement systems for the Administration. Such amendments may be for 
more than one, but not more than 10 fiscal years.
    (b) Cancellation.--A contract described in subsection (a) may 
include a cancellation provision if the Administrator determines that 
such a provision is necessary and in the best interest of the United 
States. Any such provision shall include a cancellation liability 
schedule that covers reasonable and allocable costs incurred by the 
contractor through the date of cancellation plus reasonable profit, if 
any, on those costs. Any such provision shall not apply if the contract 
is terminated by default of the contractor.
    (c) Contract Provisions.--If feasible and practicable for the pilot 
program, the Administrator may make an advance contract provision to 
achieve economic-lot purchases and more efficient production rates.
    (d) Limitation.--The Administrator may not amend a contract under 
this section until the program for the terminal automation replacement 
systems has been rebaselined in accordance with the acquisition 
management system of the Administration.
    (e) Annual Reports.--At the end of each fiscal year during the term 
of the pilot program, the Administrator shall transmit to the Committee 
on Commerce, Science, and Transportation of the Senate and the 
Committee on Transportation and Infrastructure of the House of 
Representatives a report on how the Administrator has implemented in 
such fiscal year the pilot program, the number and types of contracts 
or contract amendments that are entered into under the program, and the 
program's cost-effectiveness.
    (f) Funding.--Out of amounts appropriated under section 48101 for 
fiscal year 2004, $200,000,000 shall be used to carry out this section.

                 TITLE II--AIRPORT PROJECT STREAMLINING

SEC. 201. SHORT TITLE.

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

SEC. 202. FINDINGS.

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

SEC. 203. PROMOTION OF NEW RUNWAYS.

    Section 40104 is amended by adding at the end the following:
    ``(c) Airport Capacity Enhancement Projects at Congested 
Airports.--In carrying out subsection (a), the Administrator shall take 
action to encourage the construction of airport capacity enhancement 
projects at congested airports as those terms are defined in section 
47178.''.

SEC. 204. AIRPORT PROJECT STREAMLINING.

    (a) In General.--Chapter 471 is amended by inserting after section 
47153 the following:

             ``SUBCHAPTER III--AIRPORT PROJECT STREAMLINING

``Sec. 47171. DOT as lead agency
    ``(a) Airport Project Review Process.--The Secretary of 
Transportation shall develop and implement a coordinated review process 
for airport capacity enhancement projects at congested airports.
    ``(b) Coordinated Reviews.--
            ``(1) In general.--The coordinated review process under 
        this section shall provide that all environmental reviews, 
        analyses, opinions, permits, licenses, and approvals that must 
        be issued or made by a Federal agency or airport sponsor for an 
        airport capacity enhancement project at a congested airport 
        will be conducted concurrently, to the maximum extent 
        practicable, and completed within a time period established by 
        the Secretary, in cooperation with the agencies identified 
        under subsection (c) with respect to the project.
            ``(2) Agency participation.--Each Federal agency identified 
        under subsection (c) shall formulate and implement 
        administrative, policy, and procedural mechanisms to enable the 
        agency to ensure completion of environmental reviews, analyses, 
        opinions, permits, licenses, and approvals described in 
        paragraph (1) in a timely and environmentally responsible 
        manner.
    ``(c) Identification of Jurisdictional Agencies.--With respect to 
each airport capacity enhancement project at a congested airport, the 
Secretary shall identify, as soon as practicable, all Federal and State 
agencies that may have jurisdiction over environmental-related matters 
that may be affected by the project or may be required by law to 
conduct an environmental-related review or analysis of the project or 
determine whether to issue an environmental-related permit, license, or 
approval for the project.
    ``(d) State Authority.--If a coordinated review process is being 
implemented under this section by the Secretary with respect to a 
project at an airport within the boundaries of a State, the State, 
consistent with State law, may choose to participate in such process 
and provide that all State agencies that have jurisdiction over 
environmental-related matters that may be affected by the project or 
may be required by law to conduct an environmental-related review or 
analysis of the project or determine whether to issue an environmental-
related permit, license, or approval for the project, be subject to the 
process.
    ``(e) Memorandum of Understanding.--The coordinated review process 
developed under this section may be incorporated into a memorandum of 
understanding for a project between the Secretary and the heads of 
other Federal and State agencies identified under subsection (c) with 
respect to the project and the airport sponsor.
    ``(f) Effect of Failure To Meet Deadline.--
            ``(1) Notification of congress and ceq.--If the Secretary 
        determines that a Federal agency, State agency, or airport 
        sponsor that is participating in a coordinated review process 
        under this section with respect to a project has not met a 
        deadline established under subsection (b) for the project, the 
        Secretary shall notify, within 30 days of the date of such 
        determination, the Committee on Transportation and 
        Infrastructure of the House of Representatives, the Committee 
        on Commerce, Science, and Transportation of the Senate, the 
        Council on Environmental Quality, and the agency or sponsor 
involved about the failure to meet the deadline.
            ``(2) Agency report.--Not later than 30 days after date of 
        receipt of a notice under paragraph (1), the agency or sponsor 
        involved shall submit a report to the Secretary, the Committee 
        on Transportation and Infrastructure of the House of 
        Representatives, the Committee on Commerce, Science, and 
        Transportation of the Senate, and the Council on Environmental 
        Quality explaining why the agency or sponsor did not meet the 
        deadline and what actions it intends to take to complete or 
        issue the required review, analysis, opinion, permit, license, 
        or approval.
    ``(g) Purpose and Need.--For any environmental review, analysis, 
opinion, permit, license, or approval that must be issued or made by a 
Federal or State agency that is participating in a coordinated review 
process under this section with respect to an airport capacity 
enhancement project at a congested airport and that requires an 
analysis of purpose and need for the project, the agency, 
notwithstanding any other provision of law, shall be bound by the 
project purpose and need as defined by the Secretary.
    ``(h) Alternatives Analysis.--The Secretary shall determine the 
reasonable alternatives to an airport capacity enhancement project at a 
congested airport. Any other Federal or State agency that is 
participating in a coordinated review process under this section with 
respect to the project shall consider only those alternatives to the 
project that the Secretary has determined are reasonable.
    ``(i) Solicitation and Consideration of Comments.--In applying 
subsections (g) and (h), the Secretary shall solicit and consider 
comments from interested persons and governmental entities.
    ``(j) Monitoring by Task Force.--The Transportation Infrastructure 
Streamlining Task Force, established by Executive Order 13274 (67 Fed. 
Reg. 59449; relating to environmental stewardship and transportation 
infrastructure project reviews), may monitor airport projects that are 
subject to the coordinated review process under this section.
``Sec. 47172. Categorical exclusions
    ``Not later than 120 days after the date of enactment of this 
section, the Secretary of Transportation shall develop and publish a 
list of 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.
``Sec. 47173. Access restrictions to ease construction
    ``At the request of an airport sponsor for a congested airport, the 
Secretary of Transportation may approve a restriction on use of a 
runway to be constructed at the airport to minimize potentially 
significant adverse noise impacts from the runway only if the Secretary 
determines that imposition of the restriction--
            ``(1) is necessary to mitigate those impacts and expedite 
        construction of the runway;
            ``(2) is the most appropriate and a cost-effective measure 
        to mitigate those impacts, taking into consideration any 
        environmental tradeoffs associated with the restriction; and
            ``(3) would not adversely affect service to small 
        communities, adversely affect safety or efficiency of the 
        national airspace system, unjustly discriminate against any 
        class of user of the airport, or impose an undue burden on 
        interstate or foreign commerce.
``Sec. 47174. Airport revenue to pay for mitigation
    ``(a) In General.--Notwithstanding section 47107(b), section 47133, 
or any other provision of this title, the Secretary of Transportation 
may allow an airport sponsor carrying out an airport capacity 
enhancement project at a congested airport to make payments, out of 
revenues generated at the airport (including local taxes on aviation 
fuel), for measures to mitigate the environmental impacts of the 
project if the Secretary finds that--
            ``(1) the mitigation measures are included as part of, or 
        support, the preferred alternative for the project in the 
        documentation prepared pursuant to the National Environmental 
        Policy Act of 1969 (42 U.S.C. 4321 et seq.);
            ``(2) the use of such revenues will provide a significant 
        incentive for, or remove an impediment to, approval of the 
        project by a State or local government; and
            ``(3) the cost of the mitigation measures is reasonable in 
        relation to the mitigation that will be achieved.
    ``(b) Mitigation of Aircraft Noise.--Mitigation measures described 
in subsection (a) may include the insulation of residential buildings 
and buildings used primarily for educational or medical purposes to 
mitigate the effects of aircraft noise and the improvement of such 
buildings as required for the insulation of the buildings under local 
building codes.
``Sec. 47175. Airport funding of FAA staff
    ``(a) Acceptance of Sponsor-Provided Funds.--Notwithstanding any 
other provision of law, the Administrator of the Federal Aviation 
Administration may accept funds from an airport sponsor, including 
funds provided to the sponsor under section 47114(c), to hire 
additional staff or obtain the services of consultants in order to 
facilitate the timely processing, review, and completion of 
environmental activities associated with an airport development 
project.
    ``(b) Administrative Provision.--Instead of payment from an airport 
sponsor from funds apportioned to the sponsor under section 47114, the 
Administrator, with agreement of the sponsor, may transfer funds that 
would otherwise be apportioned to the sponsor under section 47114 to 
the account used by the Administrator for activities described in 
subsection (a).
    ``(c) Receipts Credited as Offsetting Collections.--Notwithstanding 
section 3302 of title 31, any funds accepted under this section, except 
funds transferred pursuant to subsection (b)--
            ``(1) shall be credited as offsetting collections to the 
        account that finances the activities and services for which the 
        funds are accepted;
            ``(2) shall be available for expenditure only to pay the 
        costs of activities and services for which the funds are 
        accepted; and
            ``(3) shall remain available until expended.
    ``(d) Maintenance of Effort.--No funds may be accepted pursuant to 
subsection (a), or transferred pursuant to subsection (b), in any 
fiscal year in which the Federal Aviation Administration does not 
allocate at least the amount it expended in fiscal year 2002, excluding 
amounts accepted pursuant to section 337 of the Department of 
Transportation and Related Agencies Appropriations Act, 2002 (115 Stat. 
862), for the activities described in subsection (a).
``Sec. 47176. Authorization of appropriations
    ``In addition to the amounts authorized to be appropriated under 
section 106(k), there is authorized to be appropriated to the Secretary 
of Transportation, out of the Airport and Airway Trust Fund established 
under section 9502 of the Internal Revenue Code of 1986 (26 U.S.C. 
9502), $4,200,000 for fiscal year 2004 and for each fiscal year 
thereafter to facilitate the timely processing, review, and completion 
of environmental activities associated with airport capacity 
enhancement projects at congested airports.
``Sec. 47177. Designation of aviation safety and aviation security 
              projects for priority environmental review
    ``(a) In General.--The Administrator of the Federal Aviation 
Administration may designate an aviation safety or aviation security 
project for priority environmental review. The Administrator may not 
delegate this designation authority.
    ``(b) Project Designation Criteria.--The Administrator shall 
establish guidelines for the designation of an aviation safety or 
aviation security project for priority environmental review. Such 
guidelines shall include consideration of--
            ``(1) the importance or urgency of the project;
            ``(2) the potential for undertaking the environmental 
        review under existing emergency procedures under the National 
        Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.);
            ``(3) the need for cooperation and concurrent reviews by 
        other Federal or State agencies; and
            ``(4) the prospect for undue delay if the project is not 
        designated for priority review.
    ``(c) Coordinated Environmental Reviews.--
            ``(1) Timelines and high priority for coordinated 
        environmental reviews.--The Administrator, in consultation with 
        the heads of affected agencies, shall establish specific 
        timelines for the coordinated environmental review of an 
        aviation safety or aviation security project designated under 
        subsection (a). Such timelines shall be consistent with the 
        timelines established in existing laws and regulations. Each 
        Federal agency with responsibility for project environmental 
        reviews, analyses, opinions, permits, licenses, and approvals 
        shall accord any such review a high priority and shall conduct 
        the review expeditiously and, to the maximum extent possible, 
        concurrently with other such reviews.
            ``(2) Agency participation.--Each Federal agency identified 
        under subsection (c) shall formulate and implement 
        administrative, policy, and procedural mechanisms to enable the 
        agency to ensure completion of environmental reviews, analyses, 
        opinions, permits, licenses, and approvals described in 
        paragraph (1) in a timely and environmentally responsible 
        manner.
    ``(d) State Participation.--
            ``(1) Invitation to participate.--If a priority 
        environmental review process is being implemented under this 
        section with respect to a project within the boundaries of a 
        State with applicable State environmental requirements and 
        approvals, the Administrator shall invite the State to 
        participate in the process.
            ``(2) State choice.--A State invited to participate in a 
        priority environmental review process, consistent with State 
        law, may choose to participate in such process and direct that 
        all State agencies, which have jurisdiction by law to conduct 
        an environmental review or analysis of the project to determine 
        whether to issue an environmentally related permit, license, or 
        approval for the project, be subject to the process.
    ``(e) Failure To Give Priority Review.--
            ``(1) Notice.--If the Secretary of Transportation 
        determines that a Federal agency or a participating State is 
        not complying with the requirements of this section and that 
        such noncompliance is undermining the environmental review 
        process, the Secretary shall notify, within 30 days of such 
        determination, the head of the Federal agency or, with respect 
        to a State agency, the Governor of the State.
            ``(2) Report to secretary.--A Federal agency that receives 
        a copy of a notification relating to that agency made by the 
        Secretary under paragraph (1) shall submit, within 30 days 
        after receiving such copy, a written report to the Secretary 
        explaining the reasons for the situation described in the 
        notification and what remedial actions the agency intends to 
        take.
            ``(3) Notification of ceq and committees.--If the Secretary 
        determines that a Federal agency has not satisfactorily 
        addressed the problems within a reasonable period of time 
        following a notification under paragraph (1), the Secretary 
        shall notify the Committee on Transportation and Infrastructure 
        of the House of Representatives, the Committee on Commerce, 
        Science and Transportation of the Senate, and the Council on 
        Environmental Quality.
    ``(f) Procedural Provisions.--The procedures set forth in 
subsections (c), (e), (g), (h), and (i) of section 47171 shall apply 
with respect to an aviation safety or aviation security project under 
this section in the same manner and to the same extent as such 
procedures apply to an airport capacity enhancement project at a 
congested airport under section 47171.
    ``(g) Definitions.--In this section, the following definitions 
apply:
            ``(1) Aviation safety project.--The term `aviation safety 
        project' means an aviation project that--
                    ``(A) has as its primary purpose reducing the risk 
                of injury to persons or damage to aircraft and 
                property, as determined by the Administrator; and
                    ``(B)(i) is needed to respond to a recommendation 
                from the National Transportation Safety Board; or
                    ``(ii) is necessary for an airport to comply with 
                part 139 of title 14, Code of Federal Regulations 
                (relating to airport certification).
            ``(2) Aviation security project.--The term `aviation 
        security project' means a security project at an airport 
        required by the Department of Homeland Security.
            ``(3) Federal agency.--The term `Federal agency' means a 
        department or agency of the United States Government.
``Sec. 47178. Definitions
    ``In this subchapter, the following definitions apply:
            ``(1) Airport sponsor.--The term `airport sponsor' has the 
        meaning given the term `sponsor' under section 47102.
            ``(2) Congested airport.--The term `congested airport' 
        means an airport that accounted for at least 1 percent of all 
        delayed aircraft operations in the United States in the most 
        recent year for which such data is available and an airport 
        listed in table 1 of the Federal Aviation Administration's 
        Airport Capacity Benchmark Report 2001.
            ``(3) Airport capacity enhancement project.--The term 
        `airport capacity enhancement project' means--
                    ``(A) a project for construction or extension of a 
                runway, including any land acquisition, taxiway, or 
                safety area associated with the runway or runway 
                extension; and
                    ``(B) such other airport development projects as 
                the Secretary may designate as facilitating a reduction 
                in air traffic congestion and delays.''.
    (b) Conforming Amendment.--The analysis for chapter 471 of such 
title is amended by adding at the end the following:

             ``SUBCHAPTER III--AIRPORT PROJECT STREAMLINING

``47171. DOT as lead agency.
``47172. Categorical exclusions.
``47173. Access restrictions to ease construction.
``47174. Airport revenue to pay for mitigation.
``47175. Airport funding of FAA staff.
``47176. Authorization of appropriations.
``47177. Designation of aviation safety and aviation security projects 
                            for priority environmental review.
``47178. Definitions.''.

SEC. 205. GOVERNOR'S CERTIFICATE.

    Section 47106(c) of title 49, United States Code, is amended--
            (1) in paragraph (1)--
                    (A) by inserting ``and'' after the semicolon at the 
                end of subparagraph (A)(ii);
                    (B) by striking subparagraph (B); and
                    (C) by redesignating subparagraph (C) as 
                subparagraph (B);
            (2) in paragraph (2)(A) by striking ``stage 2'' and 
        inserting ``stage 3'';
            (3) by striking paragraph (4); and
            (4) by redesignating paragraph (5) as paragraph (4).

SEC. 206. CONSTRUCTION OF CERTAIN AIRPORT CAPACITY PROJECTS.

    Section 47504(c)(2) of title 49, United States Code, is amended--
            (1) by moving subparagraphs (C) and (D) 2 ems to the right;
            (2) by striking ``and'' at the end of subparagraph (C);
            (3) by striking the period at the end of subparagraph (D) 
        and inserting ``; and''; and
            (4) by adding at the end the following:
                    ``(E) to an airport operator of a congested airport 
                (as defined in section 47178) and a unit of local 
                government referred to in paragraph (1)(B) of this 
                subsection to carry out a project to mitigate noise in 
                the area surrounding the airport if the project is 
                included as a commitment in a record of decision of the 
                Federal Aviation Administration for an airport capacity 
                enhancement project (as defined in section 47178) even 
                if that airport has not met the requirements of part 
                150 of title 14, Code of Federal Regulations.''.

SEC. 207. LIMITATIONS.

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

SEC. 208. RELATIONSHIP TO OTHER REQUIREMENTS.

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

                   TITLE III--FEDERAL AVIATION REFORM

SEC. 301. MANAGEMENT ADVISORY COMMITTEE MEMBERS.

    Section 106(p) is amended--
            (1) in the subsection heading by inserting ``and Air 
        Traffic Services Board'' after ``Council''; and
            (2) in paragraph (2)--
                    (A) by striking ``consist of'' and all that follows 
                through ``members, who'' and inserting ``consist of 13 
                members, who'';
                    (B) by inserting after ``Senate'' in subparagraph 
                (C)(i) ``, except that initial appointments made after 
                May 1, 2003, shall be made by the Secretary of 
                Transportation'';
                    (C) by striking the semicolon at the end of 
                subparagraph (C)(ii) and inserting ``; and''; and
                    (D) by striking ``employees, by--'' in subparagraph 
                (D) and all that follows through the period at the end 
                of subparagraph (E) and inserting ``employees, by the 
                Secretary of Transportation.''.

SEC. 302. REORGANIZATION OF THE AIR TRAFFIC SERVICES SUBCOMMITTEE.

    Section 106(p) is amended--
            (1) in paragraph (3)--
                    (A) by striking ``(A) No federal officer or 
                employee.--'';
                    (B) by striking ``or (2)(E)'' and inserting ``or to 
                the Air Traffic Services Board''; and
                    (C) by striking subparagraphs (B) and (C);
            (2) in paragraph (4)(C) by inserting ``or Air Traffic 
        Services Board'' after ``Council'' each place it appears;
            (3) in paragraph (5) by inserting ``, the Air Traffic 
        Services Board,'' after ``Council'';
            (4) in paragraph (6)(C)--
                    (A) by striking ``subcommittee'' in the 
                subparagraph heading and inserting ``board'';
                    (B) by striking ``member'' and inserting 
                ``members'';
                    (C) by striking ``under paragraph (2)(E)'' the 
                first place it appears and inserting ``to the Air 
                Traffic Services Board''; and
                    (D) by striking ``of the members first'' and all 
                that follows through the period at the end and 
                inserting ``the first members of the Board shall be the 
                members of the Air Traffic Services Subcommittee of the 
                Council on the day before the date of enactment of the 
                Flight 100--Century of Aviation Reauthorization Act who 
                shall serve as members of the Board until their 
                respective terms as members of the Subcommittee would 
                have ended under this subparagraph, as in effect on 
                such day.'';
            (5) in paragraph (6)(D) by striking ``under paragraph 
        (2)(E)'' and inserting ``to the Board'';
            (6) in paragraph (6)(E) by inserting ``or Board'' after 
        ``Council'';
            (7) in paragraph (6)(F) by inserting ``of the Council or 
        Board'' after ``member'';
            (8) in the second sentence of subparagraph (6)(G)--
                    (A) by striking ``Council'' and inserting 
                ``Board''; and
                    (B) by striking ``appointed under paragraph 
                (2)(E)'';
            (9) in paragraph (6)(H)--
                    (A) by striking ``subcommittee'' in the 
                subparagraph heading and inserting ``board'';
                    (B) by striking ``under paragraph (2)(E)'' in 
                clause (i) and inserting ``to the Board''; and
                    (C) by striking ``Air Traffic Services 
                Subcommittee'' and inserting ``Board'';
            (10) in paragraph (6)(I)(i)--
                    (A) by striking ``appointed under paragraph (2)(E) 
                is'' and inserting ``is serving as''; and
                    (B) by striking ``Subcommittee'' and inserting 
                ``Board'';
            (11) in paragraph (6)(I)(ii)--
                    (A) by striking ``appointed under paragraph 
                (2)(E)'' and inserting ``who is a member of the 
                Board''; and
                    (B) by striking ``Subcommittee'' and inserting 
                ``Board'';
            (12) in paragraph (6)(K) by inserting ``or Board'' after 
        ``Council'';
            (13) in paragraph (6)(L) by inserting ``or Board'' after 
        ``Council'' each place it appears; and
            (14) in paragraph (7)--
                    (A) by striking ``subcommittee'' in the paragraph 
                heading and inserting ``board'';
                    (B) by striking subparagraph (A) and inserting the 
                following:
                    ``(A) Establishment.--The Administrator shall 
                establish a board that is independent of the Council by 
                converting the Air Traffic Services Subcommittee of the 
                Council, as in effect on the day before the date of 
                enactment of the Flight 100--Century of Aviation 
                Reauthorization Act, into such board. The board shall 
                be known as the Air Traffic Services Board (in this 
                subsection referred to as the `Board').'';
                    (C) by redesignating subparagraphs (B) through (F) 
                as subparagraphs (D) through (H), respectively;
                    (D) by inserting after subparagraph (A) the 
                following:
                    ``(B) Membership and qualifications.--Subject to 
                paragraph (6)(C), the Board shall consist of 5 members, 
                one of whom shall be the Administrator and shall serve 
                as chairperson. The remaining members shall be 
                appointed by the President with the advice and consent 
                of the Senate and--
                            ``(i) shall have a fiduciary responsibility 
                        to represent the public interest;
                            ``(ii) shall be citizens of the United 
                        States; and
                            ``(iii) shall be appointed without regard 
                        to political affiliation and solely on the 
                        basis of their professional experience and 
                        expertise in one or more of the following areas 
                        and, in the aggregate, should collectively 
                        bring to bear expertise in all of the following 
                        areas:
                                    ``(I) Management of large service 
                                organizations.
                                    ``(II) Customer service.
                                    ``(III) Management of large 
                                procurements.
                                    ``(IV) Information and 
                                communications technology.
                                    ``(V) Organizational development.
                                    ``(VI) Labor relations.
                    ``(C) Prohibitions on members of board.--No member 
                of the Board 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) by striking ``Subcommittee'' each place it 
                appears in subparagraphs (D) and (E) (as redesignated 
                by subparagraph (C) of this paragraph) and inserting 
                ``Board'';
                    (F) by striking ``approve'' in subparagraph 
                (E)(v)(I) (as so redesignated) and inserting ``make 
                recommendations on'';
                    (G) by striking ``request'' in subparagraph 
                (E)(v)(II) (as so redesignated) and inserting 
                ``recommendations'';
                    (H) by striking ``ensure that the budget request 
                supports'' in subparagraph (E)(v)(III) (as so 
                redesignated) and inserting ``base such budget 
                recommendations on'';
                    (I) by striking ``The Secretary shall submit'' in 
                subparagraph (E) (as so redesignated) and all that 
                follows through the period at the end of such 
                subparagraph (E) and inserting ``The Secretary shall 
                submit the budget recommendations referred to in clause 
                (v) to the President who shall transmit such 
                recommendations to the Committee on Transportation and 
                Infrastructure and the Committee on Appropriations of 
                the House of Representatives and the Committee on 
                Commerce, Science, and Transportation and the Committee 
                on Appropriations of the Senate together with the 
                annual budget request of the Federal Aviation 
                Administration.'';
                    (J) by striking subparagraph (F) (as so 
                redesignated) and inserting the following:
                    ``(F) Board personnel matters.--The Board may 
                appoint and terminate any personnel that may be 
                necessary to enable the Board to perform its duties, 
                and may procure temporary and intermittent services 
                under section 40122.'';
                    (K) in subparagraph (G) (as so redesignated)--
                            (i) by striking clause (i);
                            (ii) by redesignating clauses (ii), (iii), 
                        and (iv) as clauses (i), (ii), and (iii), 
                        respectively; and
                            (iii) by striking ``Subcommittee'' each 
                        place it appears in clauses (i), (ii), and 
                        (iii) (as so redesignated) and inserting 
                        ``Board'';
                    (L) in subparagraph (H) (as so redesignated)--
                            (i) by striking ``Subcommittee'' each place 
                        it appears and inserting ``Board'';
                            (ii) by striking ``Administrator, the 
                        Council'' each place it appears in clauses (i) 
                        and (ii) and inserting ``Secretary''; and
                            (iii) in clause (ii) by striking ``(B)(i)'' 
                        and inserting ``(D)(i)''; and
                    (M) by adding at the end the following:
                    ``(I) Authorization.--There are authorized to be 
                appropriated to the Board such sums as may be necessary 
                for the Board to carry out its activities.''.

SEC. 303. CLARIFICATION OF THE RESPONSIBILITIES OF THE CHIEF OPERATING 
              OFFICER.

    Section 106(r) is amended--
            (1) in each of paragraphs (1)(A) and (2)(A) by striking 
        ``Air Traffic Services Subcommittee of the Aviation Management 
        Advisory Council'' and inserting ``Air Traffic Services 
        Board'';
            (2) in paragraph (2)(B) by inserting ``in'' before 
        ``paragraph (3).'';
            (3) in paragraph (3) by striking ``Air Traffic Control 
        Subcommittee of the Aviation Management Advisory Committee'' 
        and inserting ``Air Traffic Services Board'';
            (4) in paragraph (4) by striking ``Transportation and 
        Congress'' and inserting ``Transportation, the Committee on 
        Transportation and Infrastructure of the House of 
        Representatives, and the Committee on Commerce, Science, and 
        Transportation of the Senate'';
            (5) in paragraph (5)(A)--
                    (A) by striking ``develop a'' and inserting 
                ``implement the''; and
                    (B) by striking ``, including the establishment 
                of'' and inserting ``in order to further'';
            (6) in paragraph (5)(B)--
                    (A) by striking ``review'' and all that follows 
                through ``Administration,'' and inserting ``oversee the 
                day-to-day operational functions of the Administration 
                for air traffic control,'';
                    (B) by striking ``and'' at the end of clause (ii);
                    (C) by striking the period at the end of clause 
                (iii) and inserting ``; and''; and
                    (D) by adding at the end the following:
                            ``(iv) the management of cost-reimbursable 
                        contracts.'';
            (7) in paragraph (5)(C)(i) by striking ``prepared by the 
        Administrator'';
            (8) in paragraph (5)(C)(ii) by striking ``and the Secretary 
        of Transportation'' and inserting ``and the Board''; and
            (9) in paragraph (5)(C)(iii)--
                    (A) by inserting ``agency's'' before ``annual''; 
                and
                    (B) by striking ``developed under subparagraph (A) 
                of this subsection.'' and inserting ``for air traffic 
                control services.''.

SEC. 304. SMALL BUSINESS OMBUDSMAN.

    Section 106 is amended by adding at the end the following:
    ``(s) Small Business Ombudsman.--
            ``(1) Establishment.--There shall be in the Administration 
        a Small Business Ombudsman.
            ``(2) General duties and responsibilities.--The Ombudsman 
        shall--
                    ``(A) be appointed by the Administrator;
                    ``(B) serve as a liaison with small businesses in 
                the aviation industry;
                    ``(C) be consulted when the Administrator proposes 
                regulations that may affect small businesses in the 
                aviation industry;
                    ``(D) provide assistance to small businesses in 
                resolving disputes with the Administration; and
                    ``(E) report directly to the Administrator.''.

SEC. 305. FAA PURCHASE CARDS.

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

                 TITLE IV--AIRLINE SERVICE IMPROVEMENTS

SEC. 401. IMPROVEMENT OF AVIATION INFORMATION COLLECTION.

    (a) In General.--Section 329(b)(1) is amended by striking ``except 
that in no case'' and all that follows through the semicolon at the 
end.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on the date of the issuance of a final rule to modernize 
the Origin and Destination Survey of Airline Passenger Traffic, 
pursuant to the Advance Notice of Proposed Rulemaking published July 
15, 1998 (Regulation Identifier Number 2105-AC71), that reduces the 
reporting burden for air carriers through electronic filing of the 
survey data collected under section 329(b)(1) of title 49, United 
States Code.

SEC. 402. DATA ON INCIDENTS AND COMPLAINTS INVOLVING PASSENGER AND 
              BAGGAGE SECURITY SCREENING.

    Section 329 is amended by adding at the end the following:
    ``(e) Incidents and Complaints Involving Passenger and Baggage 
Security Screening.--
            ``(1) Publication of data.--The Secretary of Transportation 
        shall publish data on incidents and complaints involving 
        passenger and baggage security screening in a manner comparable 
        to other consumer complaint and incident data.
            ``(2) Monthly reports from secretary of homeland 
        security.--To assist the Secretary of Transportation in the 
        publication of data under paragraph (1), the Secretary of 
        Homeland Security shall submit monthly to the Secretary of 
        Transportation a report on the number of complaints about 
        security screening received by the Secretary of Homeland 
        Security.''.

SEC. 403. DEFINITIONS.

    (a) In General.--Section 40102(a) is amended--
            (1) by redesignating paragraphs (38) through (42) as 
        paragraphs (43) through (47), respectively;
            (2) by inserting after paragraph (37) the following:
            ``(42) `small hub airport' means a commercial service 
        airport (as defined in section 47102) that has at least 0.05 
        percent but less than 0.25 percent of the passenger 
        boardings.'';
            (3) by redesignating paragraphs (33) through (37) as 
        paragraphs (37) through (41) respectively;
            (4) by inserting after paragraph (32) the following:
            ``(36) `passenger boardings'--
                    ``(A) means, unless the context indicates 
                otherwise, revenue passenger boardings in the United 
                States in the prior calendar year on an aircraft in 
                service in air commerce, as the Secretary determines 
                under regulations the Secretary prescribes; and
                    ``(B) includes passengers who continue on an 
                aircraft in international flight that stops at an 
                airport in the 48 contiguous States, Alaska, or Hawaii 
                for a nontraffic purpose.'';
            (5) by redesignating paragraph (32) as paragraph (35);
            (6) by inserting after paragraph (31) the following:
            ``(34) `nonhub airport' means a commercial service airport 
        (as defined in section 47102) that has less than 0.05 percent 
        of the passenger boardings.'';
            (7) by redesignating paragraphs (30) and (31) as paragraphs 
        (32) and (33), respectively;
            (8) by inserting after paragraph (29) the following:
            ``(31) `medium hub airport' means a commercial service 
        airport (as defined in section 47102) that has at least 0.25 
        percent but less than 1.0 percent of the passenger 
        boardings.'';
            (9) by redesignating paragraph (29) as paragraph (30); and
            (10) by inserting after paragraph (28) the following:
            ``(29) `large hub airport' means a commercial service 
        airport (as defined in section 47102) that has at least 1.0 
        percent of the passenger boardings.''.
    (b) Conforming Amendments.--
            (1) Air service termination notice.--Section 41719(d) is 
        amended--
                    (A) by striking paragraph (1); and
                    (B) by redesignating paragraphs (2) through (5) as 
                paragraphs (1) through (4), respectively.
            (2) Small community air service.--Section 41731(a) is 
        amended by striking paragraphs (3) through (5).
            (3) Airports not receiving sufficient service.--Section 
        41743 is amended--
                    (A) in subsection (c)(1) by striking ``(as that 
                term is defined in section 41731(a)(5))''; and
                    (B) in subsection (f) by striking ``(as defined in 
                section 41731(a)(3))''.
            (4) Preservation of basic essential air service at single 
        carrier dominated hub airports.--Section 41744(b) is amended by 
        striking ``(as defined in section 41731)''.
            (5) Regional air service incentive program.--Section 41762 
        is amended--
                    (A) by striking paragraphs (11) and (15); and
                    (B) by redesignating paragraphs (12), (13), (14), 
                and (16) as paragraphs (11), (12), (13), and (14), 
                respectively.

SEC. 404. CLARIFICATIONS TO PROCUREMENT AUTHORITY.

    (a) Duties and Powers.--Section 40110(c) is amended--
            (1) by striking ``Administration--'' and all that follows 
        through ``(2) may--'' and inserting ``Administration may--'';
            (2) by striking subparagraph (D);
            (3) by redesignating subparagraphs (A), (B), (C), (E), and 
        (F) as paragraphs (1), (2), (3), (4), and (5) respectively; and
            (4) by moving such paragraphs (1) through (5) 2 ems to the 
        left.
    (b) Acquisition Management System.--Section 40110(d) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``, not later than January 1, 
                1996,''; and
                    (B) by striking ``provides for more timely and 
                cost-effective acquisitions of equipment and 
                materials.'' and inserting the following:
        ``provides for--
                    ``(A) more timely and cost-effective acquisitions 
                of equipment, services, property, and materials; and
                    ``(B) the resolution of bid protests and contract 
                disputes related thereto, using consensual alternative 
                dispute resolution techniques to the maximum extent 
                practicable.''; and
            (2) by striking paragraph (4), relating to the effective 
        date, and inserting the following:
            ``(4) Adjudication of certain bid protests and contract 
        disputes.--A bid protest or contract dispute that is not 
        addressed or resolved through alternative dispute resolution 
        shall be adjudicated by the Administrator through Dispute 
        Resolution Officers or Special Masters of the Federal Aviation 
        Administration Office of Dispute Resolution for Acquisition, 
        acting pursuant to sections 46102, 46104, 46105, 46106 and 
        46107.''.
    (c) Authority of Administrator To Acquire Services.--Section 
106(f)(2)(A)(ii) is amended by inserting ``, services,'' after 
``property''.

SEC. 405. LOW-EMISSION AIRPORT VEHICLES AND GROUND SUPPORT EQUIPMENT.

    (a) In General.--Section 40117(a)(3) is amended by inserting at the 
end the following:
                    ``(G) A project for the acquisition or conversion 
                of ground support equipment or airport-owned vehicles 
                used at a commercial service airport with, or to, low-
                emission technology (as defined in section 47102) 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 area (as 
                defined in section 171(2) of the Clean Air Act (42 
                U.S.C. 7501(2)) or a maintenance area referred to in 
                section 175A of such Act (42 U.S.C. 7505a), and if such 
                project will result in an airport receiving appropriate 
                emission credits as described in section 47138.''.
    (b) Maximum Cost for Certain Low-Emission Technology Projects.--
Section 40117(b) is amended by adding at the end the following:
            ``(5) Maximum cost for certain low-emission technology 
        projects.--The maximum cost that may be financed by imposition 
        of a passenger facility fee under this section for a project 
        described in subsection (a)(3)(G) with respect to vehicle or 
        ground support equipment may not exceed the incremental amount 
        of the project cost that is greater than the cost of acquiring 
        a vehicle or equipment that is not low-emission and would be 
        used for the same purpose, or the cost of low-emission 
        retrofitting, as determined by the Secretary.''.
    (c) Ground Support Equipment Defined.--Section 40117(a) is 
amended--
            (1) by redesignating paragraphs (4) and (5) as paragraphs 
        (5) and (6), respectively;
            (2) by inserting after paragraph (3) the following:
            ``(4) Ground support equipment.--The term `ground support 
        equipment' means service and maintenance equipment used at an 
        airport to support aeronautical operations and related 
        activities.''.

SEC. 406. STREAMLINING OF THE PASSENGER FACILITY FEE PROGRAM.

    (a) Application Requirements.--Section 40117(c) is amended--
            (1) by adding at the end of paragraph (2) the following:
            ``(E) The agency will include in its application or notice 
        submitted under subparagraph (A) copies of all certifications 
        of agreement or disagreement received under subparagraph (D).
            ``(F) For the purpose of this section, an eligible agency 
        providing notice and an opportunity for consultation to an air 
        carrier or foreign air carrier is deemed to have satisfied the 
        requirements of this paragraph if the eligible agency limits 
        such notices and consultations to air carriers and foreign air 
        carriers that have a significant business interest at the 
        airport. In the subparagraph, the term `significant business 
        interest' means an air carrier or foreign air carrier that had 
        no less than 1.0 percent of passenger boardings at the airport 
        in the prior calendar year, had at least 25,000 passenger 
        boardings at the airport in the prior calendar year, or 
        provides scheduled service at the airport.'';
            (2) by redesignating paragraph (3) as paragraph (4);
            (3) by inserting after paragraph (2) the following:
    ``(3) Before submitting an application, the eligible agency must 
provide reasonable notice and an opportunity for public comment. The 
Secretary shall prescribe regulations that define reasonable notice and 
provide for at least the following under this paragraph:
            ``(A) A requirement that the eligible agency provide public 
        notice of intent to collect a passenger facility fee so as to 
        inform those interested persons and agencies who may be 
        affected, which public notice may include--
                    ``(i) publication in local newspapers of general 
                circulation;
                    ``(ii) publication in other local media; and
                    ``(iii) posting the notice on the agency's Web 
                site.
            ``(B) A requirement for submission of public comments no 
        sooner than 30 days, and no later than 45 days, after the date 
        of the publication of the notice.
            ``(C) A requirement that the agency include in its 
        application or notice submitted under subparagraph (A) copies 
        of all comments received under subparagraph (B).''; and
            (4) in the first sentence of paragraph (4) (as redesignated 
        by paragraph (2) of this subsection) by striking ``shall'' and 
        inserting ``may''.
    (b) Pilot Program for Passenger Facility Fee Authorizations at 
Nonhub Airports.--Section 40117 is amended by adding at the end the 
following:
    ``(l) Pilot Program for Passenger Facility Fee Authorizations at 
Nonhub Airports.--
            ``(1) In general.--The Secretary shall establish a pilot 
        program to test alternative procedures for authorizing eligible 
        agencies for nonhub airports to impose passenger facility fees. 
        An eligible agency may impose in accordance with the provisions 
        of this subsection a passenger facility fee under this section. 
        For purposes of the pilot program, the procedures in this 
        subsection shall apply instead of the procedures otherwise 
        provided in this section.
            ``(2) Notice and opportunity for consultation.--The 
        eligible agency must provide reasonable notice and an 
        opportunity for consultation to air carriers and foreign air 
        carriers in accordance with subsection (c)(2) and must provide 
        reasonable notice and opportunity for public comment in 
        accordance with subsection (c)(3).
            ``(3) Notice of intention.--The eligible agency must submit 
        to the Secretary a notice of intention to impose a passenger 
        facility fee under this subsection. This shall include--
                    ``(A) information that the Secretary may require by 
                regulation on each project for which authority to 
                impose a passenger facility fee is sought;
                    ``(B) the amount of revenue from passenger facility 
                fees that is proposed to be collected for each project; 
                and
                    ``(C) the level of the passenger facility fee that 
                is proposed.
            ``(4) Acknowledgement of receipt and indication of 
        objection.--The Secretary shall acknowledge receipt of the 
        notice and indicate any objection to the imposition of a 
        passenger facility fee under this subsection for any project 
        identified in the notice within 30 days after receipt of the 
        eligible agency's notice.
            ``(5) Authority to impose fee.--Unless the Secretary 
        objects within 30 days after receipt of the eligible agency's 
        notice, the eligible agency is authorized to impose a passenger 
        facility fee in accordance with the terms of its notice under 
        this subsection.
            ``(6) Deadline.--Not later than 180 days after the date of 
        enactment of this subsection, the Secretary shall propose such 
        regulations as may be necessary to carry out this subsection.
            ``(7) Sunset.--This subsection shall not be in effect 3 
        years after the date of issuance of regulations to carry out 
        this subsection.
            ``(8) Acknowledgement not an order.--An acknowledgement 
        issued under paragraph (4) shall not be considered an order of 
        the Secretary issued under section 46110.''.
    (c) Clarification of Applicability of PFCS to Military Charters.--
Section 40117(e)(2) is amended--
            (1) by striking the period at the end of subparagraph (C) 
        and inserting a semicolon;
            (2) by striking ``and'' at the end of subparagraph (D);
            (3) by striking the period at the end of subparagraph (E) 
        and inserting ``; and''; and
            (4) by inserting after subparagraph (E) the following:
            ``(F) enplaning at an airport if the passenger did not pay 
        for the air transportation which resulted in such enplanement 
        due to charter arrangements and payment by the Department of 
        Defense.''.
    (d) Technical Amendments.--Section 40117(a)(3)(C) is amended--
            (1) by striking ``for costs'' and inserting ``A project''; 
        and
            (2) by striking the semicolon and inserting a period.

SEC. 407. FINANCIAL MANAGEMENT OF PASSENGER FACILITY FEES.

    (a) In General.--Section 40117 is further amended by adding at the 
end the following:
    ``(m) Financial Management of Fees.--
            ``(1) Handling of fees.--
                    ``(A) Placement of fees in escrow account.--Subject 
                to subparagraph (B), passenger facility revenue held by 
                an air carrier or any of its agents shall be segregated 
                from the carrier's cash and other assets and placed in 
                an escrow account for the benefit of the eligible 
                agencies entitled to such revenue.
                    ``(B) Alternative method of compliance.--Instead of 
                placing amounts in an escrow account under subparagraph 
                (A), an air carrier may provide to the eligible agency 
                a letter of credit, bond, or other form of adequate and 
                immediately available security in an amount equal to 
                estimated remittable passenger facility fees for 180 
                days, to be assessed against later audit, upon which 
                security the eligible agency shall be entitled to draw 
                automatically, without necessity of any further legal 
                or judicial action to effectuate foreclosure.
            ``(2) Trust fund status.--If an air carrier or its agent 
        commingles passenger facility revenue in violation of the 
        subsection, the trust fund status of such revenue shall not be 
        defeated by an inability of any party to identify and trace the 
        precise funds in the accounts of the air carrier.
            ``(3) Prohibition.--An air carrier and its agents may not 
        grant to any third party any security or other interest in 
        passenger facility revenue.
            ``(4) Compensation to eligible entities.--An air carrier 
        that fails to comply with any requirement of this subsection, 
        or otherwise unnecessarily causes an eligible entity to expend 
        funds, through litigation or otherwise, to recover or retain 
        payment of passenger facility revenue to which the eligible 
        entity is otherwise entitled shall be required to compensate 
        the eligible agency for the costs so incurred.
            ``(5) Interest on amounts.--An air carrier that collects 
        passenger facility fees is entitled to receive the interest on 
        passenger facility fee accounts, if the accounts are 
        established and maintained in compliance with this 
        subsection.''.
    (b) Effective Date.--
            (1) In general.--The amendment made by subsection (a) shall 
        take effect 60 days after the date of enactment of this Act.
            (2) Existing regulations.--Beginning 60 days after the date 
        of enactment of this Act, the provisions of section 158.49 of 
        title 14, Code of Federal Regulations, that permit the 
        commingling of passenger facility fees with other air carrier 
        revenue shall have no force or effect.

SEC. 408. GOVERNMENT CONTRACTING FOR AIR TRANSPORTATION.

    (a) Government-Financed Air Transportation.--Section 40118(f)(2) is 
amended by inserting before the period at the end the following: ``, 
except that it shall not include a contract for the transportation by 
air of passengers''.
    (b) Airlift Service.--Section 41106(b) is amended by inserting 
after ``military department'' the following: ``, or by a person that 
has contracted with the Secretary of Defense or the Secretary of a 
military department,''.

SEC. 409. OVERFLIGHTS OF NATIONAL PARKS.

    (a) Air Tour Management Act Clarifications.--Section 40128 is 
amended--
            (1) in subsection (a)(1) by inserting ``, as defined by 
        this section,'' after ``lands'' the first place it appears;
            (2) in subsections (b)(3)(A), (b)(3)(B), and (b)(3)(C) by 
        inserting ``over a national park'' after ``operations'';
            (3) in subsection (b)(3)(D) by striking ``at the park'' and 
        inserting ``over a national park'';
            (4) in subsection (b)(3)(E) by inserting ``over a national 
        park'' after ``operations'' the first place it appears;
            (5) in subsections (c)(2)(A)(i) and (c)(2)(B) by inserting 
        ``over a national park'' after ``operations'';
            (6) in subsection (f)(1) by inserting ``over a national 
        park'' after ``operation'';
            (7) in subsection (f)(4)(A)--
                    (A) by striking ``commercial air tour operation'' 
                and inserting ``commercial air tour operation over a 
                national park''; and
                    (B) by striking ``park, or over tribal lands,'' and 
                inserting ``park (except the Grand Canyon National 
                Park), or over tribal lands (except those within or 
                abutting the Grand Canyon National Park),'';
            (8) in subsection (f)(4)(B) by inserting ``over a national 
        park'' after ``operation''; and
            (9) in the heading for paragraph (4) of subsection (f) by 
        inserting ``over a national park'' after ``operation''.
    (b) Grand Canyon National Park Special Flight Rules Area Operation 
Curfew.--
            (1) In general.--The Administrator of the Federal Aviation 
        Administration may not restrict commercial Special Flight Rules 
        Area operations in the Dragon and Zuni Point corridors of the 
        Grand Canyon National Park during the period beginning 1 hour 
        after sunrise and ending 1 hour before sunset, unless required 
        for aviation safety purposes.
            (2) Effect on existing regulations.--Beginning on the date 
        of enactment of this Act, section 93.317 of title 14, Code of 
        Federal Regulations, shall not be in effect.

SEC. 410. COLLABORATIVE DECISIONMAKING PILOT PROGRAM.

    (a) In General.--Chapter 401 is amended by adding at the end the 
following:
``Sec. 40129. Collaborative decisionmaking pilot program
    ``(a) Establishment.--Not later than 90 days after the date of 
enactment of this section, the Administrator of the Federal Aviation 
Administration shall establish a collaborative decisionmaking pilot 
program in accordance with this section.
    ``(b) Duration.--Except as provided in subsection (k), the pilot 
program shall be in effect for a period of 2 years.
    ``(c) Guidelines.--
            ``(1) Issuance.--The Administrator shall issue guidelines 
        concerning the pilot program. Such guidelines, at a minimum, 
        shall define the criteria and process for determining when a 
        capacity reduction event exists that warrants the use of 
        collaborative decisionmaking among carriers at airports 
        participating in the pilot program and that prescribe the 
        methods of communication to be implemented among carriers 
        during such an event.
            ``(2) Views.--The Administrator may obtain the views of 
        interested parties in issuing the guidelines.
    ``(d) Effect of Determination of Existence of Capacity Reduction 
Event.--Upon a determination by the Administrator that a capacity 
reduction event exists, the Administrator may authorize air carriers 
and foreign air carriers operating at an airport participating in the 
pilot program to communicate for a period of time not to exceed 24 
hours with each other concerning changes in their respective flight 
schedules in order to use air traffic capacity most effectively. The 
Administration shall facilitate and monitor such communication.
    ``(e) Selection of Participating Airports.--Not later than 30 days 
after the date on which the Administrator establishes the pilot 
program, the Administrator shall select 3 airports to participate in 
the pilot program from among the most capacity-constrained airports in 
the country based on the Administration's Airport Capacity Benchmark 
Report 2001 or more recent data on airport capacity that is available 
to the Administrator. The Administrator shall select an airport for 
participation in the pilot program if the Administrator determines that 
collaborative decisionmaking among air carriers and foreign air 
carriers would reduce delays at the airport and have beneficial effects 
on reducing delays in the national airspace system as a whole.
    ``(f) Eligibility of Air Carriers.--An air carrier or foreign air 
carrier operating at an airport selected to participate in the pilot 
program is eligible to participate in the pilot program if the 
Administrator determines that the carrier has the operational and 
communications capability to participate in the pilot program.
    ``(g) Modification or Termination of Pilot Program at an Airport.--
The Administrator may modify or end the pilot program at an airport 
before the term of the pilot program has expired, or may ban an air 
carrier or foreign air carrier from participating in the program, if 
the Administrator determines that the purpose of the pilot program is 
not being furthered by participation of the airport or air carrier or 
if the Secretary of Transportation finds that the pilot program or the 
participation of an air carrier or foreign air carrier in the pilot 
program has had, or is having, an adverse effect on competition among 
carriers.
    ``(h) Evaluation.--
            ``(1) In general.--Before the expiration of the 2-year 
        period for which the pilot program is authorized under 
        subsection (b), the Administrator shall determine whether the 
        pilot program has facilitated more effective use of air traffic 
        capacity and the Secretary shall determine whether the pilot 
        program has had an adverse effect on airline competition or the 
        availability of air services to communities. The Administrator 
        shall also examine whether capacity benefits resulting from the 
        participation in the pilot program of an airport resulted in 
        capacity benefits to other parts of the national airspace 
        system.
            ``(2) Obtaining necessary data.--The Administrator may 
        require participating air carriers and airports to provide data 
        necessary to evaluate the pilot program's impact.
    ``(i) Extension of Pilot Program.--At the end of the 2-year period 
for which the pilot program is authorized, the Administrator may 
continue the pilot program for an additional 2 years and expand 
participation in the program to up to 7 additional airports if the 
Administrator determines pursuant to subsection (h) that the pilot 
program has facilitated more effective use of air traffic capacity and 
if the Secretary determines that the pilot program has had no adverse 
effect on airline competition or the availability of air services to 
communities. The Administrator shall select the additional airports to 
participate in the extended pilot program in the same manner in which 
airports were initially selected to participate.''.
    (b) Conforming Amendment.--The analysis for chapter 401 is amended 
by adding at the end the following:

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

SEC. 411. AVAILABILITY OF AIRCRAFT ACCIDENT SITE INFORMATION.

    (a) Domestic Air Transportation.--Section 41113(b) is amended--
            (1) in paragraph (16) by striking ``the air carrier'' the 
        third place it appears; and
            (2) by adding at the end the following:
            ``(17)(A) An assurance that, in the case of an accident 
        that results in significant damage to a man-made structure or 
        other property on the ground that is not government-owned, the 
        air carrier will promptly provide notice, in writing, to the 
        extent practicable, directly to the owner of the structure or 
        other property about liability for any property damage and 
        means for obtaining compensation.
            ``(B) At a minimum, the written notice shall advise an 
        owner (i) to contact the insurer of the property as the 
        authoritative source for information about coverage and 
        compensation; (ii) to not rely on unofficial information 
        offered by air carrier representatives about compensation by 
        the air carrier for accident-site property damage; and (iii) to 
        obtain photographic or other detailed evidence of property 
        damage as soon as possible after the accident, consistent with 
        restrictions on access to the accident site.
            ``(18) An assurance that, in the case of an accident in 
        which the National Transportation Safety Board conducts a 
        public hearing or comparable proceeding at a location greater 
        than 80 miles from the accident site, the air carrier will 
        ensure that the proceeding is made available simultaneously by 
        electronic means at a location open to the public at both the 
        origin city and destination city of the air carrier's flight if 
        that city is located in the United States.''.
    (b) Foreign Air Transportation.--Section 41313(c) is amended by 
adding at the end the following:
            ``(17) Notice concerning liability for man-made 
        structures.--
                    ``(A) In general.--An assurance that, in the case 
                of an accident that results in significant damage to a 
                man-made structure or other property on the ground that 
                is not government-owned, the foreign air carrier will 
                promptly provide notice, in writing, to the extent 
                practicable, directly to the owner of the structure or 
                other property about liability for any property damage 
                and means for obtaining compensation.
                    ``(B) Minimum contents.--At a minimum, the written 
                notice shall advise an owner (i) to contact the insurer 
                of the property as the authoritative source for 
                information about coverage and compensation; (ii) to 
                not rely on unofficial information offered by foreign 
                air carrier representatives about compensation by the 
                foreign air carrier for accident-site property damage; 
                and (iii) to obtain photographic or other detailed 
                evidence of property damage as soon as possible after 
the accident, consistent with restrictions on access to the accident 
site.
            ``(18) Simultaneous electronic transmission of ntsb 
        hearing.--An assurance that, in the case of an accident in 
        which the National Transportation Safety Board conducts a 
        public hearing or comparable proceeding at a location greater 
        than 80 miles from the accident site, the foreign air carrier 
        will ensure that the proceeding is made available 
        simultaneously by electronic means at a location open to the 
        public at both the origin city and destination city of the 
        foreign air carrier's flight if that city is located in the 
        United States.''.
    (c) Update Plans.--Air carriers and foreign air carriers shall 
update their plans under sections 41113 and 41313 of title 49, United 
States Code, respectively, to reflect the amendments made by 
subsections (a) and (b) of this section not later than 90 days after 
the date of enactment of this Act.

SEC. 412. SLOT EXEMPTIONS AT RONALD REAGAN WASHINGTON NATIONAL AIRPORT.

    (a) Beyond-Perimeter Exemptions.--Section 41718(a) is amended by 
striking ``12'' and inserting ``24''.
    (b) Within-Perimeter Exemptions.--Section 41718(b) is amended--
            (1) by striking ``12'' and inserting ``20''; and
            (2) by striking ``that were designated as medium hub or 
        smaller airports''.
    (c) Limitations.--
            (1) General exemptions.--Section 41718(c)(2) is amended by 
        striking ``two'' and inserting ``3''.
            (2) Allocation of within-perimeter exemptions.--Section 
        41718(c)(3) is amended--
                    (A) in subparagraph (A)--
                            (i) by striking ``four'' and inserting 
                        ``six''; and
                            (ii) by striking ``and'' at the end;
                    (B) in subparagraph (B)--
                            (i) by striking ``eight'' and inserting 
                        ``ten''; and
                            (ii) by striking the period at the end and 
                        inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(C) four shall be for air transportation to 
                airports without regard to their size.''.
    (d) Application Procedures.--Section 41718(d) is amended to read as 
follows:
    ``(d) Application Procedures.--The Secretary shall establish 
procedures to ensure that all requests for exemptions under this 
section are granted or denied within 90 days after the date on which 
the request is made.''.
    (e) Effect of Perimeter Rules on Competition and Air Service.--
            (1) Identification of other airports.--The Secretary of 
        Transportation shall identify airports (other than Ronald 
        Reagan Washington National Airport) that have imposed perimeter 
        rules like those in effect with respect to Ronald Reagan 
        Washington National Airport.
            (2) Limitation on applicability.--This subsection does not 
        apply to perimeter rules imposed by Federal law.
            (3) Study.--The Secretary shall conduct a study of the 
        effect that perimeter rules for airports identified under 
        paragraph (1) have on competition and on air service to 
        communities outside the perimeter.
            (4) Report.--Not later than 120 days after the date of 
        enactment of this Act, the Secretary shall transmit to Congress 
        a report on the results of the study.
    (f) Effect of Changing Definition of Commuter Air Carrier.--
            (1) Study.--The Secretary shall study the effects of 
        changing the definition of commuter air carrier in regulations 
        of the Federal Aviation Administration to increase the maximum 
        size of aircraft of such carriers to 76 seats or less on air 
        service to small communities and on commuter air carriers 
        operating aircraft with 56 seats or less.
            (2) Report.--Not later than 90 days after the date of 
        enactment of this Act, the Secretary shall transmit to Congress 
        a report on the results of the study.

SEC. 413. NOTICE CONCERNING AIRCRAFT ASSEMBLY.

    (a) In General.--Subchapter I of chapter 417 is amended by adding 
at the end the following:
``Sec. 41722. Notice concerning aircraft assembly
    ``The Secretary of Transportation shall require, beginning after 
the last day of the 1-year period following the date of enactment of 
this section, an air carrier using an aircraft to provide scheduled 
passenger air transportation to display a notice, on an information 
placard available to each passenger on the aircraft, that informs the 
passengers of the nation in which the aircraft was finally 
assembled.''.
    (b) Conforming Amendment.--The analysis for chapter 417 is amended 
by striking the item relating to section 41721 and inserting the 
following:

``41721. Reports by carriers on incidents involving animals during air 
                            transport.
``41722. Notice concerning aircraft assembly.''.

SEC. 414. SPECIAL RULE TO PROMOTE AIR SERVICE TO SMALL COMMUNITIES.

    (a) In General.--Subchapter I of chapter 417 is further amended by 
adding at the end the following:
``Sec. 41723. Special rule to promote air service to small communities
    ``In order to promote air service to small communities, the 
Secretary of Transportation shall permit an operator of a turbine 
powered or multiengine piston powered aircraft with 10 passenger seats 
or less (1) to provide air transportation between an airport that is a 
nonhub airport and another airport or between an airport that is not a 
commercial service airport and another airport, and (2) to sell 
individual seats on that aircraft at a negotiated price, if the 
aircraft is otherwise operated in accordance with parts 119 and 135 of 
title 14, Code of Federal Regulations, and the air transportation is 
otherwise provided in accordance with part 298 of such title 14.''.
    (b) Conforming Amendment.--The analysis for chapter 417 is further 
amended by adding at the end the following:

``41723. Special rule to promote air service to small communities.''.

SEC. 415. SMALL COMMUNITY AIR SERVICE.

    (a) Compensation Guidelines, Limitation, and Claims.--
            (1) Payment of promotional amounts.--Section 41737(a)(2) is 
        amended by inserting before the period at the end ``or may be 
        paid directly to the unit of local government having 
        jurisdiction over the eligible place served by the air 
        carrier''.
            (2) Local share.--Section 41737(a) is amended by adding at 
        the end the following:
            ``(3) Payment of cost by local government.--
                    ``(A) General requirement.--The guidelines may 
                require a unit of local government having jurisdiction 
                over an eligible place that is less than 170 miles from 
                a medium or large hub or less than 75 miles from a 
                small hub or a State within the boundaries of which the 
                eligible place is located to pay 2.5 percent in fiscal 
                year 2005, 5 percent in fiscal year 2006, 7.5 percent 
                in fiscal year 2007, and 10 percent in fiscal year 2008 
                of the amount of compensation payable under this 
                subchapter for air transportation with respect to the 
                eligible place to ensure the continuation of that air 
                transportation.
                    ``(B) Waiver.--The Secretary may waive the 
                requirement, or reduce the amount, of a payment from a 
                unit of local government under subparagraph (A) if the 
                Secretary finds that--
                            ``(i) the unit of local government lacks 
                        the ability to pay; and
                            ``(ii) the loss of essential air service to 
                        the eligible place would have an adverse effect 
                        on the eligible place's access to the national 
                        air transportation system.
                    ``(C) Determination of mileage.--In determining the 
                mileage between the eligible place and a hub under this 
                paragraph, the Secretary shall use the most commonly 
                used highway route between the eligible place and the 
                hub.''.
            (3) Authority to make agreements and incur obligations.--
        Section 41737(d) is amended--
                    (A) by striking ``(1) The Secretary'' and inserting 
                the ``The Secretary''; and
                    (B) by striking paragraph (2).
    (b) Airports Not Receiving Sufficient Service.--Section 41743 is 
amended--
            (1) in the heading of subsection (a) by striking ``Pilot'';
            (2) in subsection (a) by striking ``pilot'';
            (3) in subsection (c)--
                    (A) by striking paragraph (3);
                    (B) by redesignating paragraphs (4) and (5) as 
                paragraphs (3) and (4), respectively; and
                    (C) in paragraph (4) (as so redesignated)--
                            (i) by striking ``and'' at the end of 
                        subparagraph (C);
                            (ii) by striking the period at the end of 
                        subparagraph (D) and inserting ``; and''; and
                            (iii) by adding at the end the following:
                    ``(E) the assistance can be used in the fiscal year 
                in which it is received.''; and
            (4) in subsection (f) by striking ``pilot''.
    (c) Essential Air Service Authorization.--Section 41742 is 
amended--
            (1) in subsection (a)(2) by striking ``$15,000,000'' and 
        inserting ``$65,000,000'';
            (2) by adding at the end of subsection (a) the following:
            ``(3) Authorization for additional employees.--In addition 
        to amounts authorized under paragraphs (1) and (2), there are 
        authorized to be appropriated such sums as may be necessary for 
        the Secretary of Transportation to hire and employ 4 additional 
        employees for the office responsible for carrying out the 
        essential air service program.''; and
            (3) by striking subsection (c).
    (d) Process for Discontinuing Certain Subsidies.--Section 41734 is 
amended by adding at the end the following:
    ``(i) Process for Discontinuing Certain Subsidies.--If the 
Secretary determines that no subsidy will be provided to a carrier to 
provide essential air service to an eligible place because the eligible 
place does not meet the requirements of section 332 of the Department 
of Transportation and Related Agencies Appropriations Act, 2000 (49 
U.S.C. 41731 note; 113 Stat. 1022), the Secretary shall notify the 
affected community that the subsidy will cease but shall continue to 
provide the subsidy for 90 days after providing the notice to the 
community.''.
    (e) Joint Proposals.--Section 41740 is amended by inserting ``, 
including joint fares,'' after ``joint proposals''.
    (f) Community and Regional Choice Program.--
            (1) In general.--Subchapter II of chapter 417 is amended by 
        adding at the end the following:
``Sec. 41745. Community and regional choice program
    ``(a) Establishment.--The Secretary of Transportation shall 
establish an alternate essential air service pilot program in 
accordance with the requirements of this section.
    ``(b) Compensation to Eligible Places.--In carrying out the 
program, the Secretary, instead of paying compensation to an air 
carrier to provide essential air service to an eligible place, may pay 
compensation directly to a unit of local government having jurisdiction 
over the eligible place or a State within the boundaries of which the 
eligible place is located.
    ``(c) Use of Compensation.--A unit of local government or State 
receiving compensation for an eligible place under the program shall 
use the compensation for any of the following purposes:
            ``(1) To provide assistance to an air carrier to provide 
        scheduled air service to and from the eligible place, without 
        being subject to the requirements of 41732(b).
            ``(2) To provide assistance to an air carrier to provide 
        on-demand air taxi service to and from the eligible place.
            ``(3) To provide assistance to a person to provide 
        scheduled or on-demand surface transportation to and from the 
        eligible place and an airport in another place.
            ``(4) In combination with other units of local government 
        in the same region, to provide transportation services to and 
        from all the eligible places in that region at an airport or 
        other transportation center that can serve all the eligible 
        places in that region.
            ``(5) To purchase aircraft, or a fractional share in 
        aircraft, to provide transportation to and from the eligible 
        place.
            ``(6) To pay for other transportation or related services 
        that the Secretary may permit.
    ``(d) Fractionally Owned Aircraft.--Notwithstanding any other 
provision of law, only those operating rules that relate to an aircraft 
that is fractionally owned apply when an aircraft described in 
subsection (c)(5) is used to provide transportation described in 
subsection (c)(5).
    ``(e) Applications.--
            ``(1) In general.--A unit of local government or State 
        seeking to participate in the program for an eligible place 
        shall submit to the Secretary an application in such form and 
        containing such information as the Secretary may require.
            ``(2) Required information.--At a minimum, the application 
        shall include--
                    ``(A) a statement of the amount of compensation 
                required; and
                    ``(B) a description of how the compensation will be 
                used.
    ``(f) Participation Requirements.--
            ``(1) Eligible places.--An eligible place for which 
        compensation is received under the program in a fiscal year 
        shall not be eligible to receive in that fiscal year the 
        essential air service that it would otherwise be entitled to 
        under this subchapter.
            ``(2) Governmental entities.--A unit of local government or 
        State receiving compensation for an eligible place under the 
        program in a fiscal year shall not be required to pay the local 
        share described in 41737(a)(3) in such fiscal year.
    ``(g) Subsequent Participation.--A unit of local government 
participating in the program under this section in a fiscal year shall 
not be prohibited from participating in the basic essential air service 
program under this chapter in a subsequent fiscal year if such unit is 
otherwise eligible to participate in such program.
    ``(h) Funding.--Amounts appropriated or otherwise made available to 
carry out the essential air service program under this subchapter shall 
be available to carry out this section.''.
            (2) Conforming amendment.--The analysis for chapter 417 is 
        amended by inserting after the item relating to section 41744 
        the following:

``41745. Community and regional choice program.''.

SEC. 416. TYPE CERTIFICATES.

    (a) Agreements To Permit Use of Certificates by Other Persons.--
Section 44704(a) is amended by adding at the end the following:
    ``(3) If the holder of a type certificate agrees to permit another 
person to use the certificate to manufacture a new aircraft, aircraft 
engine, propeller, or appliance, the holder shall provide the other 
person with written evidence, in a form acceptable to the 
Administrator, of that agreement. A person may manufacture a new 
aircraft, aircraft engine, propeller, or appliance based on a type 
certificate only if the person is the holder of the type certificate or 
has permission from the holder.''.
    (b) Certification of Products Manufactured in Foreign Nations.--
Section 44704 is further amended by adding at the end the following:
    ``(e) Certification of Products Manufactured in Foreign Nations.--
In order to ensure safety, the Administrator shall spend at least the 
same amount of time and perform a no-less-thorough review in 
certifying, or validating the certification of, an aircraft, aircraft 
engine, propeller, or appliance manufactured in a foreign nation as the 
regulatory authorities of that nation employ when the authorities 
certify, or validate the certification of, an aircraft, aircraft 
engine, propeller, or appliance manufactured in the United States.''.

SEC. 417. DESIGN ORGANIZATION CERTIFICATES.

    (a) General Authority To Issue Certificates.--Effective on the last 
day of the 7-year period beginning on the date of enactment of this 
Act, section 44702(a) is amended by inserting ``design organization 
certificates,'' after ``airman certificates,''.
    (b) Design Organization Certificates.--
            (1) Plan.--Not later than 3 years after the date of 
        enactment of this Act, the Administrator of the Federal 
        Aviation Administration shall transmit to the Committee on 
        Transportation and Infrastructure of the House of 
        Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate a plan for the development and oversight 
of a system for certification of design organizations to certify 
compliance with the requirements and minimum standards prescribed under 
section 44701(a) of title 49, United States Code, for the type 
certification of aircraft, aircraft engines, propellers, or appliances.
            (2) Issuance of certificates.--Section 44704 is further 
        amended by adding at the end the following:
    ``(f) Design Organization Certificates.--
            ``(1) Issuance.--Beginning 7 years after the date of 
        enactment of this subsection, the Administrator may issue a 
        design organization certificate to a design organization to 
        authorize the organization to certify compliance with the 
        requirements and minimum standards prescribed under section 
        44701(a) for the type certification of aircraft, aircraft 
        engines, propellers, or appliances.
            ``(2) Applications.--On receiving an application for a 
        design organization certificate, the Administrator shall 
        examine and rate the design organization submitting the 
        application, in accordance with regulations to be prescribed by 
        the Administrator, to determine whether the design organization 
        has adequate engineering, design, and testing capabilities, 
        standards, and safeguards to ensure that the product being 
        certificated is properly designed and manufactured, performs 
        properly, and meets the regulations and minimum standards 
        prescribed under section 44701(a).
            ``(3) Issuance of type certificates based on design 
        organization certification.--On receiving an application for a 
        type certificate under subsection (a) that is accompanied by a 
        certification of compliance by a design organization 
        certificated under this subsection, instead of conducting an 
        independent investigation under subsection (a), the 
        Administrator may issue the type certificate based on the 
        certification of compliance.
            ``(4) Public safety.--The Administrator shall include in a 
        design organization certificate issued under this subsection 
        terms required 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) Section heading.--Section 44704 is amended by striking 
        the section designation and heading and inserting the 
        following:
``Sec. 44704. Type certificates, production certificates, airworthiness 
              certificates, and design organization certificates''.
            (2) Chapter analysis.--The analysis for chapter 447 is 
        amended by striking the item relating to section 44704 and 
        inserting the following:

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

SEC. 418. COUNTERFEIT OR FRAUDULENTLY REPRESENTED PARTS VIOLATIONS.

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

SEC. 419. RUNWAY SAFETY STANDARDS.

    (a) In General.--Chapter 447 is amended by adding at the end the 
following:
``Sec. 44727. Runway safety areas
    ``An airport owner or operator shall not be required to reduce the 
length of a runway or declare the length of a runway to be less than 
the actual pavement length in order to meet standards of the Federal 
Aviation Administration applicable to runway safety areas.''.
    (b) Conforming Amendment.--The analysis for chapter 447 is amended 
by adding at the end the following:

``44727. Runway safety areas.''.

SEC. 420. AVAILABILITY OF MAINTENANCE INFORMATION.

    (a) In General.--Chapter 447 is further amended by adding at the 
end the following:
``Sec. 44728. Availability of maintenance information
    ``(a) In General.--The Administrator of the Federal Aviation 
Administration shall continue in effect the requirement of section 
21.50(b) of title 14, Code of Federal Regulations, that the holder of a 
design approval--
            ``(1) shall prepare and furnish at least one set of 
        complete instructions for continued airworthiness as prescribed 
        in such section to the owner of each type of aircraft, aircraft 
        engine, or propeller upon its delivery or upon the issuance of 
        the first standard airworthiness certificate for the affected 
        aircraft, whichever occurs later; and
            ``(2) thereafter shall make the instructions, and any 
        changes thereto, available to any other person required by 
        parts 1 through 199 of title 14, Code of Federal Regulations, 
        to comply with any of the terms of the instructions.
    ``(b) Definitions.--In this section, the following definitions 
apply:
            ``(1) Make available.--The term `make available' means 
        providing at a cost not to exceed the cost of preparation and 
        distribution.
            ``(2) Design approval.--The term `design approval' means a 
        type certificate, supplemental type certificate, amended type 
        certificate, parts manufacturer approval, technical standard 
        order authorization, and any other action as determined by the 
        Administrator pursuant to subsection (c)(2).
            ``(3) Instructions for continued airworthiness.--The term 
        `instructions for continued airworthiness' means any 
        information (and any changes to such information) considered 
        essential to continued airworthiness that sets forth the 
        methods, techniques, and practices for performing maintenance 
        and alteration on civil aircraft, aircraft engines, propellers, 
        appliances or any part installed thereon. Such information may 
        include maintenance, repair, and overhaul manuals, standard 
        practice manuals, service bulletins, service letters, or 
        similar documents issued by a design approval holder.
    ``(c) Rulemaking.--The Administrator shall conduct a rulemaking 
proceeding for the following purposes:
            ``(1) To determine the meaning of the phrase `essential to 
        continued airworthiness' of the applicable aircraft, aircraft 
        engine, and propeller as that term is used in parts 23 through 
        35 of title 14, Code of Federal Regulations.
            ``(2) To determine if a design approval should include, in 
        addition to those approvals specified in subsection (b)(2), any 
        other activity in which persons are required to have technical 
        data approved by the Administrator.
            ``(3) To revise existing rules to reflect the definition of 
        design approval holder in subsections (b)(2) and (c)(2).
            ``(4) To determine if design approval holders that prepared 
        instructions for continued airworthiness or maintenance manuals 
        before January 29, 1981, should be required to make the manuals 
        available (including any changes thereto) to any person 
        required by parts 1 through 199 of title 14, Code of Federal 
        Regulations, to comply with any of the terms of those manuals.
            ``(5) To require design approval holders that--
                    ``(A) are operating an ongoing business concern;
                    ``(B) were required to produce maintenance manuals 
                or instructions for continued airworthiness under 
                section 21.50(b) of title 14, Code of Federal 
                Regulations; and
                    ``(C) have not done so,
        to prepare those documents and make them available as required 
        by this section not later than 1 year after date on which the 
        regulations are published.
            ``(6) To revise its rules to reflect the changes made by 
        this section.
    ``(d) Limitation on Statutory Construction.--Nothing is this 
section shall be construed as requiring the holder of a design approval 
to make available proprietary information unless it is deemed essential 
to continued airworthiness.''.
    (b) Conforming Amendment.--The analysis for chapter 447 is further 
amended by adding at the end the following:

``44728. Availability of maintenance information.''.

SEC. 421. CERTIFICATE ACTIONS IN RESPONSE TO A SECURITY THREAT.

    (a) In General.--Chapter 461 is amended by adding at the end the 
following:
``Sec. 46111. Certificate actions in response to a security threat
    ``(a) Orders.--The Administrator of Federal Aviation Administration 
shall issue an order amending, modifying, suspending, or revoking any 
part of a certificate issued under this title if the Administrator is 
notified by the Under Secretary for Border and Transportation Security 
of the Department of Homeland Security that the holder of the 
certificate poses, or is suspected of posing, a risk of air piracy or 
terrorism or a threat to airline or passenger safety. If requested by 
the Under Secretary, the order shall be effective immediately.
    ``(b) Hearings for Citizens.--An individual who is a citizen of the 
United States who is adversely affected by an order of the 
Administrator under subsection (a) is entitled to a hearing on the 
record.
    ``(c) Hearings.--When conducting a hearing under this section, the 
administrative law judge shall not be bound by findings of fact or 
interpretations of laws and regulations of the Administrator or the 
Under Secretary.
    ``(d) Appeals.--An appeal from a decision of an administrative law 
judge as the result of a hearing under subsection (b) shall be made to 
the Transportation Security Oversight Board established by section 115. 
The Board shall establish a panel to review the decision. The members 
of this panel (1) shall not be employees of the Transportation Security 
Administration, (2) shall have the level of security clearance needed 
to review the determination made under this section, and (3) shall be 
given access to all relevant documents that support that determination. 
The panel may affirm, modify, or reverse the decision.
    ``(e) Review.--A person substantially affected by an action of a 
panel under subsection (d), or the Under Secretary when the Under 
Secretary decides that the action of the panel under this section will 
have a significant adverse impact on carrying out this part, may obtain 
review of the order under section 46110. The Under Secretary and the 
Administrator shall be made a party to the review proceedings. Findings 
of fact of the panel are conclusive if supported by substantial 
evidence.
    ``(f) Explanation of Decisions.--An individual who commences an 
appeal under this section shall receive a written explanation of the 
basis for the determination or decision and all relevant documents that 
support that determination to the maximum extent that the national 
security interests of the United States and other applicable laws 
permit.
    ``(g) Classified Evidence.--
            ``(1) In general.--The Under Secretary, in consultation 
        with the Administrator, shall issue regulations to establish 
        procedures by which the Under Secretary, as part of a hearing 
        conducting under this section, may substitute an unclassified 
        summary of classified evidence upon the approval of the 
        administrative law judge.
            ``(2) Approval and disapproval of summaries.--Under the 
        procedures, an administrative law judge shall--
                    ``(A) approve a summary if the judge finds that it 
                is sufficient to enable the certificate holder to 
                appeal an order issued under subsection (a); or
                    ``(B) disapprove a summary if the judge finds that 
                it is not sufficient to enable the certificate holder 
                to appeal such an order.
            ``(3) Modifications.--If an administrative law judge 
        disapproves a summary under paragraph (2)(B), the judge shall 
        direct the Under Secretary to modify the summary and resubmit 
        the summary for approval.
            ``(4) Insufficient modifications.--If an administrative law 
        judge is unable to approve a modified summary, the order issued 
        under subsection (a) that is the subject of the hearing shall 
        be set aside unless the judge finds that such a result--
                    ``(A) would likely cause serious and irreparable 
                harm to the national security; or
                    ``(B) would likely cause death or serious bodily 
                injury to any person.
            ``(5) Special procedures.--If an administrative law judge 
        makes a finding under subparagraph (A) or (B) of paragraph (4), 
        the hearing shall proceed without an unclassified summary 
        provided to the certificate holder. In such a case, subject to 
        procedures established by regulation by the Under Secretary in 
        consultation with the Administrator, the administrative law 
        judge shall appoint a special attorney to assist the accused 
        by--
                    ``(A) reviewing in camera the classified evidence; 
                and
                    ``(B) challenging, through an in camera proceeding, 
                the veracity of the evidence contained in the 
                classified information.''.
    (b) Conforming Amendment.--The analysis for chapter 461 is amended 
by adding at the end the following:

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

SEC. 422. FLIGHT ATTENDANT CERTIFICATION.

    (a) In General.--Chapter 447 is further amended by adding at the 
end the following:
``Sec. 44729. Flight attendant certification
    ``(a) Certificate Required.--
            ``(1) In general.--No person may serve as a flight 
        attendant aboard an aircraft of an air carrier unless that 
        person holds a certificate of demonstrated proficiency from the 
        Administrator of the Federal Aviation Administration. Upon the 
        request of the Administrator or an authorized representative of 
        the National Transportation Safety Board or another Federal 
        agency, a person who holds such a certificate shall present the 
        certificate for inspection within a reasonable period of time 
        after the date of the request.
            ``(2) Special rule for current flight attendants.--An 
        individual serving as a flight attendant on the effective date 
        of this section may continue to serve aboard an aircraft as a 
        flight attendant until completion by that individual of the 
        required recurrent or requalification training and subsequent 
        certification under this section.
            ``(3) Treatment of flight attendant after notification.--On 
        the date that the Administrator is notified by an air carrier 
        that an individual has the demonstrated proficiency to be a 
        flight attendant, the individual shall be treated for purposes 
of this section as holding a certificate issued under the section.
    ``(b) Issuance of Certificate.--The Administrator shall issue a 
certificate of demonstrated proficiency under this section to an 
individual after the Administrator is notified by the air carrier that 
the individual has successfully completed all the training requirements 
for flight attendants approved by the Administrator.
    ``(c) Designation of Person To Determine Successful Completion of 
Training.--In accordance with part 183 of chapter 14, Code of Federal 
Regulation, the director of operations of an air carrier is designated 
to determine that an individual has successfully completed the training 
requirements approved by the Administrator for such individual to serve 
as a flight attendant.
    ``(d) Specifications Relating to Certificates.--Each certificate 
issued under this section shall--
            ``(1) be numbered and recorded by the Administrator;
            ``(2) contain the name, address, and description of the 
        individual to whom the certificate is issued;
            ``(3) contain the name of the air carrier that employs or 
        will employ the certificate holder on the date that the 
        certificate is issued;
            ``(4) is similar in size and appearance to certificates 
        issued to airmen;
            ``(5) contain the airplane group for which the certificate 
        is issued; and
            ``(6) be issued not later than 30 days after the 
        Administrator receives notification from the air carrier of 
        demonstrated proficiency and, in the case of an individual 
        serving as flight attendant on the effective date of this 
        section, not later than 1 year after such effective date.
    ``(e) Approval of Training Programs.--Air carrier flight attendant 
training programs shall be subject to approval by the Administrator. 
All flight attendant training programs approved by the Administrator in 
the 1-year period ending on the date of enactment of this section shall 
be treated as providing a demonstrated proficiency for purposes of 
meeting the certification requirements of this section.
    ``(f) Flight Attendant Defined.--In this section, the term `flight 
attendant' means an individual working as a flight attendant in the 
cabin of an aircraft that has 20 or more seats and is being used by an 
air carrier to provide air transportation.''.
    (b) Conforming Amendment.--The analysis for chapter 447 is further 
amended by adding at the end the following:

``44729. Flight attendant certification.''.
    (c) Effective Date.--The amendments made by subsections (a) and (b) 
shall take effect on the 365th day following the date of enactment of 
this Act.

SEC. 423. 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 notice.''.

SEC. 424. NOISE EXPOSURE MAPS.

    Section 47503 is amended--
            (1) in subsection (a) by striking ``1985,'' and inserting 
        ``a forecast period that is at least 5 years in the future''; 
        and
            (2) by striking subsection (b) and inserting the following:
    ``(b) Revised Maps.--If, in an area surrounding an airport, a 
change in the operation of the airport would establish a substantial 
new noncompatible use, or would significantly reduce noise over 
existing noncompatible uses, that is not reflected in either the 
existing conditions map or forecast map currently on file with the 
Federal Aviation Administration, the airport operator shall submit a 
revised noise exposure map to the Secretary showing the new 
noncompatible use or noise reduction.''.

SEC. 425. AMENDMENT OF GENERAL FEE SCHEDULE PROVISION.

    The amendment made by section 119(d) of the Aviation and 
Transportation Security Act (115 Stat. 629) shall not be affected by 
the savings provisions contained in section 141 of that Act (115 Stat. 
643).

SEC. 426. IMPROVEMENT OF CURRICULUM STANDARDS FOR AVIATION MAINTENANCE 
              TECHNICIANS.

    (a) In General.--The Administrator of the Federal Aviation 
Administration shall ensure that the training standards for airframe 
and powerplant mechanics under part 65 of title 14, Code of Federal 
Regulations, are updated and revised in accordance with this section. 
The Administrator may update and revise the training standards through 
the initiation of a formal rulemaking or by issuing an advisory 
circular or other agency guidance.
    (b) Elements for Consideration.--The updated and revised standards 
required under subsection (a) shall include those curriculum 
adjustments that are necessary to more accurately reflect current 
technology and maintenance practices.
    (c) Minimum Training Hours.--In making adjustments to the 
maintenance curriculum requirements pursuant to this section, the 
current requirement of 1900 minimum training hours shall be maintained.
    (d) Certification.--Any adjustment or modification of current 
curriculum standards made pursuant to this section shall be reflected 
in the certification examinations of airframe and powerplant mechanics.
    (e) Completion.--The revised and updated training standards 
required by subsection (a) shall be completed not later than 12 months 
after the date of enactment of this Act.
    (f) Periodic Reviews and Updates.--The Administrator shall review 
the content of the curriculum standards for training airframe and 
powerplant mechanics referred to in subsection (a) every 3 years after 
completion of the revised and updated training standards required under 
subsection (a) as necessary to reflect current technology and 
maintenance practices.

SEC. 427. TASK FORCE ON FUTURE OF AIR TRANSPORTATION SYSTEM.

    (a) In General.--The President shall establish a task force to work 
with the Next Generation Air Transportation System Joint Program Office 
authorized under section 106(k)(3).
    (b) Membership.--The task force shall be composed of 
representatives, appointed by the President, from air carriers, general 
aviation, pilots, and air traffic controllers and the following 
government organizations:
            (1) The Federal Aviation Administration.
            (2) The National Aeronautics and Space Administration.
            (3) The Department of Defense.
            (4) The Department of Homeland Security.
            (5) The National Oceanic and Atmospheric Administration.
            (6) Other government organizations designated by the 
        President.
    (c) Function.--The function of the task force shall be to develop 
an integrated plan to transform the Nation's air traffic control system 
and air transportation system to meet its future needs.
    (d) Plan.--Not later than 1 year after the date of establishment of 
the task force, the task force shall transmit to the President and 
Congress a plan outlining the overall strategy, schedule, and resources 
needed to develop and deploy the Nation's next generation air traffic 
control system and air transportation system.

SEC. 428. 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; and
            (3) analyze samples of residue from aircraft ventilation 
        ducts and filters after air quality incidents to identify the 
        allergens, diseases, and other contaminants to which passengers 
        and crew were exposed.
    (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. 429. 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. 430. TASK FORCE ON ENHANCED TRANSFER OF APPLICATIONS OF TECHNOLOGY 
              FOR MILITARY AIRCRAFT TO CIVILIAN AIRCRAFT.

    (a) In General.--The President shall establish a task force to look 
for better methods for ensuring that technology developed for military 
aircraft is more quickly and easily transferred to applications for 
improving and modernizing the fleet of civilian aircraft.
    (b) Membership.--The task force shall be composed of the Secretary 
of Transportation who shall be the chair of the task force and 
representatives, appointed by the President, from the following:
            (1) The Department of Transportation.
            (2) The Federal Aviation Administration.
            (3) The Department of Defense.
            (4) The National Aeronautics and Space Administration.
            (5) The aircraft manufacturing industry.
            (6) Such other organizations as the President may 
        designate.
    (c) Report.--Not later than 1 year after the date of enactment of 
this Act, the task force shall report to Congress on the methods looked 
at by the task force for ensuring the transfer of applications 
described in subsection (a).

SEC. 431. REIMBURSEMENT FOR LOSSES INCURRED BY GENERAL AVIATION 
              ENTITIES.

    (a) In General.--The Secretary of Transportation may make grants to 
reimburse the following general aviation entities for the security 
costs incurred and revenue foregone as a result of the restrictions 
imposed by the Federal Government following the terrorist attacks on 
the United States that occurred on September 11, 2001, or the military 
action to free the people of Iraq that commenced in March 2003:
            (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) General aviation entities that were affected by Federal 
        Aviation Administration Notices to Airmen FDC 2/0199 and 3/1862 
        and section 352 of the Department of Transportation and Related 
        Agencies Appropriations Act, 2003 (P.L. 108-7, Division I).
            (4) General aviation entities affected by implementation of 
        section 44939 of title 49, United States Code.
            (5) 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) manufactures nonmilitary aircraft with a maximum 
        seating capacity of fewer than 20 passengers or aircraft parts 
        to be used in such aircraft;
            (3) provides services necessary for nonmilitary operations 
        under such part 91; or
            (4) operates an airport, other than a primary airport (as 
        such terms are defined in such section 40102), that--
                    (A) is listed in the national plan of integrated 
                airport systems developed by the Federal Aviation 
                Administration under section 47103 of such title; or
                    (B) is normally open to the public, is located 
                within the confines of enhanced class B airspace (as 
                defined by the Federal Aviation Administration in 
                Notice to Airmen FDC 1/0618), and was closed as a 
                result of an order issued by the Federal Aviation 
                Administration in the period beginning September 11, 
                2001, and ending January 1, 2002, and remained closed 
                as a result of that order on January 1, 2002.
Such term includes fixed based operators, flight schools, manufacturers 
of general aviation aircraft and products, persons engaged in 
nonscheduled aviation enterprises, and general aviation independent 
contractors.
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $100,000,000. Such sums shall 
remain available until expended.

SEC. 432. IMPASSE PROCEDURES FOR NATIONAL ASSOCIATION OF AIR TRAFFIC 
              SPECIALISTS.

    (a) Failure of Current Negotiations.--If, within 30 days after the 
date of enactment of this Act, the Federal Aviation Administration and 
the exclusive bargaining representative of the National Association of 
Air Traffic Specialists have failed to achieve agreement through a 
mediation process of the Federal Mediation and Conciliation Service, 
the current labor negotiation shall be treated for purposes of this 
section to have failed.
    (b) Submission to Impasse Panel.--Not later than 30 days after the 
negotiation has failed under subsection (a), the parties to the 
negotiation shall submit unresolved issues to the Federal Service 
Impasses Panel described in section 7119(c) of title 5, United States 
Code, for final and binding resolution.
    (c) Assistance.--The Panel shall render assistance to the parties 
in resolving their dispute in accordance with section 7119 of title 5, 
United States Code, and parts 2470 and 2471 of title 5, Code of Federal 
Regulations.
    (d) Determination.--The Panel shall make a just and reasonable 
determination of the matters in dispute. In arriving at such 
determination, the Panel shall specify the basis for its findings, 
taking into consideration such relevant factors as are normally and 
customarily considered in the determination of wages or impasse Panel 
proceedings. The Panel shall also take into consideration the financial 
ability of the Administration to pay.
    (e) Effect of Panel Determination.--The determination of the Panel 
shall be final and binding upon the parties for the period prescribed 
by the Panel or a period otherwise agreed to by the parties.
    (f) Review.--The determination of the Panel shall be subject to 
review in the manner prescribed in chapter 71 of title 5, United States 
Code.

SEC. 433. FAA INSPECTOR TRAINING.

    (a) Study.--
            (1) In general.--The Comptroller General shall conduct a 
        study of the training of the aviation safety inspectors of the 
        Federal Aviation Administration (in this section referred to as 
        ``FAA inspectors'').
            (2) Contents.--The study shall include--
                    (A) an analysis of the type of training provided to 
                FAA inspectors;
                    (B) actions that the Federal Aviation 
                Administration has undertaken to ensure that FAA 
                inspectors receive up-to-date training on the latest 
                technologies;
                    (C) the extent of FAA inspector training provided 
                by the aviation industry and whether such training is 
provided without charge or on a quid-pro-quo basis; and
                    (D) the amount of travel that is required of FAA 
                inspectors in receiving training.
            (3) Report.--Not later than 1 year after the date of 
        enactment of this Act, the Comptroller General shall transmit 
        to the Committee on Transportation and Infrastructure of the 
        House of Representatives and the Committee on Commerce, 
        Science, and Transportation of the Senate a report on the 
        results of the study.
    (b) Sense of the House.--It is the sense of the House of 
Representatives that--
            (1) FAA inspectors should be encouraged to take the most 
        up-to-date initial and recurrent training on the latest 
        aviation technologies;
            (2) FAA inspector training should have a direct relation to 
        an individual's job requirements; and
            (3) if possible, a FAA inspector should be allowed to take 
        training at the location most convenient for the inspector.
    (c) Workload of Inspectors.--
            (1) Study by national academy of sciences.--Not later than 
        90 days after the date of enactment of this Act, the 
        Administrator of the Federal Aviation Administration shall make 
        appropriate arrangements for the National Academy of Sciences 
        to conduct a study of the assumptions and methods used by the 
        Federal Aviation Administration to estimate staffing standards 
        for FAA inspectors to ensure proper oversight over the aviation 
        industry, including the designee program.
            (2) Contents.--The study shall include the following:
                    (A) A suggested method of modifying FAA inspectors 
                staffing models for application to current local 
                conditions or applying some other approach to 
                developing an objective staffing standard.
                    (B) The approximate cost and length of time for 
                developing such models.
            (3) Report.--Not later than 12 months after the initiation 
        of the arrangements under subsection (a), the National Academy 
        of Sciences shall transmit to Congress a report on the results 
        of the study.

SEC. 434. PROHIBITION ON AIR TRAFFIC CONTROL PRIVATIZATION.

    (a) In General.--The Secretary of Transportation may not authorize 
the transfer of the air traffic separation and control functions 
operated by the Federal Aviation Administration on the date of 
enactment of this Act to a private entity or to a public entity other 
than the United States Government.
    (b) Contract Tower Program.--Subsection (a) shall not apply to the 
contract tower program authorized by section 47124 of title 49, United 
States Code.

SEC. 435. AIRFARES FOR MEMBERS OF THE ARMED FORCES.

    (a) Findings.--Congress finds that--
            (1) the Armed Forces is comprised of approximately 
        1,400,000 members who are stationed on active duty at more than 
        6,000 military bases in 146 different countries;
            (2) the United States is indebted to the members of the 
        Armed Forces, many of whom are in grave danger due to their 
        engagement in, or exposure to, combat;
            (3) military service, especially in the current war against 
        terrorism, often requires members of the Armed Forces to be 
        separated from their families on short notice, for long periods 
        of time, and under very stressful conditions;
            (4) the unique demands of military service often preclude 
        members of the Armed Forces from purchasing discounted advance 
        airline tickets in order to visit their loved ones at home; and
            (5) it is the patriotic duty of the people of the United 
        States to support the members of the Armed Forces who are 
        defending the Nation's interests around the world at great 
        personal sacrifice.
    (b) Sense of Congress.--It is the sense of Congress that each 
United States air carrier should--
            (1) establish for all members of the Armed Forces on active 
        duty reduced air fares that are comparable to the lowest 
        airfare for ticketed flights; and
            (2) offer flexible terms that allow members of the Armed 
        Forces on active duty to purchase, modify, or cancel tickets 
        without time restrictions, fees, and penalties.

SEC. 436. AIR CARRIERS REQUIRED TO HONOR TICKETS FOR SUSPENDED AIR 
              SERVICE.

    Section 145(c) of the Aviation and Transportation Security Act (49 
U.S.C. 40101 note; 115 stat. 645) is amended by striking ``more than'' 
and all that follows through ``after'' and inserting ``more than 36 
months after''.

SEC. 437. INTERNATIONAL AIR SHOW.

    (a) Study.--The Secretary of Transportation shall study the 
feasibility of the United States hosting a world-class international 
air show.
    (b) Report.--Not later than 9 months after the date of enactment of 
this Act, the Secretary shall transmit to Congress a report on the 
results of the study conducted under subsection (a) together with 
recommendations concerning potential locations at which the air show 
could be held.

SEC. 438. DEFINITION OF AIR TRAFFIC CONTROLLER.

    (a) Civil Service Retirement System.--Section 8331 of title 5, 
United States Code, is amended--
            (1) by striking ``and'' at the end of paragraph (27);
            (2) by striking the period at the end of paragraph (28) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(29) `air traffic controller' or `controller' means--
                    ``(A) a controller within the meaning of section 
                2109(1); and
                    ``(B) a civilian employee of the Department of 
                Transportation or the Department of Defense holding a 
                supervisory, managerial, executive, technical, 
                semiprofessional, or professional position for which 
                experience as a controller (within the meaning of 
                section 2109(1)) is a prerequisite.''.
    (b) Federal Employees' Retirement System.--Section 8401 of title 5, 
United States Code, is amended--
            (1) by striking ``and'' at the end of paragraph (33);
            (2) by striking the period at the end of paragraph (34) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(35) `air traffic controller' or `controller' means--
                    ``(A) a controller within the meaning of section 
                2109(1); and
                    ``(B) a civilian employee of the Department of 
                Transportation or the Department of Defense holding a 
                supervisory, managerial, executive, technical, 
                semiprofessional, or professional position for which 
                experience as a controller (within the meaning of 
                section 2109(1)) is a prerequisite.''.
    (c) Mandatory Separation Treatment Not Affected.--
            (1) Civil service retirement system.--Section 8335(a) of 
        title 5, United States Code, is amended by adding at the end 
        the following: ``For purposes of this subsection, the term `air 
        traffic controller' or `controller' has the meaning given to it 
        under section 8331(29)(A).''.
            (2) Federal employees' retirement system.--Section 8425(a) 
        of title 5, United States Code, is amended by adding at the end 
        the following: ``For purposes of this subsection, the term `air 
        traffic controller' or `controller' has the meaning given to it 
        under section 8401(35)(A).''.
    (d) Effective Date.--This section and the amendments made by this 
section--
            (1) shall take effect on the 60th day after the date of 
        enactment of this Act; and
            (2) shall apply with respect to--
                    (A) any annuity entitlement to which is based on an 
                individual's separation from service occurring on or 
                after that 60th day; and
                    (B) any service performed by any such individual 
                before, on, or after that 60th day, subject to 
                subsection (e).
    (e) Deposit Required for Certain Prior Service To Be Creditable as 
Controller Service.--
            (1) Deposit requirement.--For purposes of determining 
        eligibility for immediate retirement under section 8412(e) of 
        title 5, United States Code, the amendment made by subsection 
        (b) shall, with respect to any service described in paragraph 
        (2), be disregarded unless there is deposited into the Civil 
        Service Retirement and Disability Fund, with respect to such 
        service, in such time, form, and manner as the Office of 
        Personnel Management by regulation requires, an amount equal to 
        the amount by which--
                    (A) the deductions from pay which would have been 
                required for such service if the amendments made by 
                this section had been in effect when such service was 
                performed, exceeds
                    (B) the unrefunded deductions or deposits actually 
                made under subchapter II of chapter 84 of such title 5 
                with respect to such service.
        The amount under the preceding sentence shall include interest, 
        computed under paragraphs (2) and (3) of section 8334(e) of 
        such title 5.
            (2) Prior service described.--This subsection applies with 
        respect to any service performed by an individual, before the 
        60th day following the date of enactment of this Act, as an 
        employee described in section 8401(35)(B) of such title 5 (as 
        set forth in subsection (b)).

SEC. 439. JUSTIFICATION FOR AIR DEFENSE IDENTIFICATION ZONE.

    (a) In General.--If the Administrator of the Federal Aviation 
Administration establishes an Air Defense Identification Zone (in this 
section referred as an ``ADIZ''), the Administrator shall transmit, not 
later than 60 days after the date of establishing the ADIZ, 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 also shall transmit to the 
Committees updates of the report every 60 days until the ADIZ is 
rescinded. The reports and updates shall be transmitted in classified 
form.
    (b) Existing ADIZ.--If an ADIZ is in effect on the date of 
enactment of this Act, the Administrator shall transmit an initial 
report under subsection (a) not later than 30 days after such date of 
enactment.
    (c) Definition.--In this section, the terms ``Air Defense 
Identification Zone'' and ``ADIZ'' each mean a zone established by the 
Administrator with respect to airspace under 18,000 feet in 
approximately a 15- to 38-mile radius around Washington, District of 
Columbia, for which security measures are extended beyond the existing 
15-mile no-fly zone around Washington and in which general aviation 
aircraft are required to adhere to certain procedures issued by the 
Administrator.

SEC. 440. INTERNATIONAL AIR TRANSPORTATION.

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

SEC. 441. REIMBURSEMENT OF AIR CARRIERS FOR CERTAIN SCREENING AND 
              RELATED ACTIVITIES.

    The Secretary of Transportation, subject to the availability of 
funds (other than amounts in the Aviation Trust Fund) provided for this 
purpose, shall reimburse air carriers and airports for the following:
            (1) All screening and related activities that the air 
        carriers or airports are still performing or continuing to be 
        responsible for, including--
                    (A) the screening of catering supplies;
                    (B) checking documents at security checkpoints;
                    (C) screening of passengers; and
                    (D) screening of persons with access to aircraft.
            (2) The provision of space and facilities used to perform 
        screening functions if such space and facilities have been 
        previously used, or were intended to be used, for revenue-
        producing purposes.

SEC. 442. GENERAL AVIATION FLIGHTS AT RONALD REAGAN WASHINGTON NATIONAL 
              AIRPORT.

    It is the sense of Congress that Ronald Reagan Washington National 
Airport should be open to general aviation flights as soon as possible.

                      TITLE V--AIRPORT DEVELOPMENT

SEC. 501. DEFINITIONS.

    (a) In General.--Section 47102 is amended--
            (1) by redesignating paragraphs (19) and (20) as paragraphs 
        (24) and (25), respectively;
            (2) by inserting after paragraph (18) the following:
            ``(23) `small hub airport' means a commercial service 
        airport that has at least 0.05 percent but less than 0.25 
        percent of the passenger boardings.'';
            (3) in paragraph (10) by striking subparagraphs (A) and (B) 
        and inserting following:
                    ``(A) means, unless the context indicates 
                otherwise, revenue passenger boardings in the United 
                States in the prior calendar year on an aircraft in 
                service in air commerce, as the Secretary determines 
                under regulations the Secretary prescribes; and
                    ``(B) includes passengers who continue on an 
                aircraft in international flight that stops at an 
                airport in the 48 contiguous States, Alaska, or Hawaii 
                for a nontraffic purpose.'';
            (4) by redesignating paragraphs (10) through (18) as 
        paragraphs (14) through (22), respectively;
            (5) by inserting after paragraph (9) the following:
            ``(10) `large hub airport' means a commercial service 
        airport that has at least 1.0 percent of the passenger 
        boardings.
            ``(12) `medium hub airport' means a commercial service 
        airport that has at least 0.25 percent but less than 1.0 
        percent of the passenger boardings.
            ``(13) `nonhub airport' means a commercial service airport 
        that has less than 0.05 percent of the passenger boardings.''; 
        and
            (6) by striking paragraph (6) and inserting the following:
            ``(6) `amount made available under section 48103' or 
        `amount newly made available' means the amount authorized for 
        grants under section 48103 as that amount may be limited in 
        that year by a subsequent law, but as determined without regard 
        to grant obligation recoveries made in that year or amounts 
        covered by section 47107(f).''.
    (b) Conforming Amendment.--Section 47116(b)(1) is amended by 
striking ``(as defined in section 41731 of this title)''.

SEC. 502. REPLACEMENT OF BAGGAGE CONVEYOR SYSTEMS.

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

SEC. 503. SECURITY COSTS AT SMALL AIRPORTS.

    (a) Security Costs.--Section 47102(3)(J) is amended to read as 
follows:
                    ``(J) in the case of a nonhub airport or an airport 
                that is not a primary airport in fiscal year 2004, 
                direct costs associated with new, additional, or 
                revised security requirements imposed on airport 
                operators by law, regulation, or order on or after 
                September 11, 2001, if the Government's share is paid 
                only from amounts apportioned to a sponsor under 
                section 47114(c) or 47114(d)(3)(A).''.
    (b) Conforming Amendment.--Section 47110(b)(2) is amended--
            (1) in subparagraph (D) by striking ``, 47102(3)(K), or 
        47102(3)(L)''; and
            (2) by aligning the margin of subparagraph (D) with the 
        margin of subparagraph (B).

SEC. 504. WITHHOLDING OF PROGRAM APPLICATION APPROVAL.

    Section 47106(d) is amended--
            (1) in paragraph (1) by striking ``section 47114(c) and (e) 
        of this title'' and inserting ``subsections (c), (d), and (e) 
        of section 47114''; and
            (2) by adding at the end the following:
    ``(4) If the Secretary withholds a grant to an airport from the 
discretionary fund under section 47115 or from the small airport fund 
under section 47116 on the grounds that the sponsor has violated an 
assurance or requirement of this subchapter, the Secretary shall follow 
the procedures of this subsection.''.

SEC. 505. RUNWAY SAFETY AREAS.

    Section 47106 is amended by adding at the end the following:
    ``(h) Runway Safety Areas.--The Secretary may approve an 
application under this chapter for a project grant to construct, 
reconstruct, repair, or improve a runway only if the Secretary receives 
written assurances, satisfactory to the Secretary, that the sponsor 
will undertake, to the maximum extent practical, improvement of the 
runway's safety area to meet the standards of the Federal Aviation 
Administration.''.

SEC. 506. DISPOSITION OF LAND ACQUIRED FOR NOISE COMPATIBILITY 
              PURPOSES.

    Section 47107(c) is amended by adding at the end the following:
    ``(4) Notwithstanding paragraph (2)(A)(iii), an airport owner or 
operator may retain all or any portion of the proceeds from a land 
disposition described in that paragraph if the Secretary finds that the 
use of the land will be compatible with airport purposes and the 
proceeds retained will be used for airport development or to carry out 
a noise compatibility program under section 47504(c).''.

SEC. 507. GRANT ASSURANCES.

    (a) Hangar Construction.--Section 47107(a) is amended--
            (1) by striking ``and'' at the end of paragraph (19);
            (2) by striking the period at the end of paragraph (20) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(21) if the airport owner or operator and a person who 
        owns an aircraft agree that a hangar is to be constructed at 
        the airport for the aircraft at the aircraft owner's expense, 
the airport owner or operator will grant to the aircraft owner for the 
hangar a long-term lease (of not less than 50 years) that is subject to 
such terms and conditions on the hangar as the airport owner or 
operator may impose.''.
    (b) Statute of Limitations..--Section 47107(l)(5)(A) is amended by 
inserting ``or any other governmental entity'' after ``sponsor''.
    (c) Audit Certification.--Section 47107(m) is amended--
            (1) in paragraph (1) by striking ``promulgate regulations 
        that'' and inserting ``include a provision in the compliance 
        supplement provisions to'';
            (2) in paragraph (1) by striking ``and opinion of the 
        review''; and
            (3) by striking paragraph (3).

SEC. 508. ALLOWABLE PROJECT COSTS.

    (a) Construction or Modification of Public Parking Facilities for 
Security Purposes.--Section 47110 is amended--
            (1) in subsection (f) by striking ``subsection (d)'' and 
        inserting ``subsections (d) and (h)''; and
            (2) by adding at the end the following:
    ``(h) Construction or Modification of Public Parking Facilities for 
Security Purposes.--Notwithstanding subsection (f)(1), a cost of 
constructing or modifying a public parking facility for passenger 
automobiles to comply with a regulation or directive of the Department 
of Homeland Security shall be treated as an allowable airport 
development project cost.''.
    (b) Debt Financing.--Section 47110 is further amended by adding at 
the end the following:
    ``(i) Debt Financing.--In the case of an airport that is not a 
medium hub airport or large hub airport, the Secretary may determine 
that allowable airport development project costs include payments of 
interest, commercial bond insurance, and other credit enhancement costs 
associated with a bond issue to finance the project.''.
    (c) Clarification of Allowable Costs..--Section 47110(b)(1) is 
amended by inserting before the semicolon at the end ``and any cost of 
moving a Federal facility impeding the project if the rebuilt facility 
is of an equivalent size and type''.
    (d) Technical Amendments.--Section 47110(e) is amended by aligning 
the margin of paragraph (6) with the margin of paragraph (5).

SEC. 509. APPORTIONMENTS TO PRIMARY AIRPORTS.

    (a) Formula Changes.--Section 47114(c)(1)(A) is amended by striking 
clauses (iv) and (v) and by inserting the following:
                            ``(iv) $.65 for each of the next 500,000 
                        passenger boardings at the airport during the 
                        prior calendar year;
                            ``(v) $.50 cents for each of the next 
                        2,500,000 passenger boardings at the airport 
                        during the prior calendar year; and
                            ``(vi) $.45 cents for each additional 
                        passenger boarding at the airport during the 
                        prior calendar year.''.
    (b) Special Rule for Fiscal Years 2004 and 2005.--Section 
47114(c)(1) is amended by adding at the end the following:
                    ``(F) Special rule for fiscal years 2004 and 
                2005.--Notwithstanding subparagraph (A) and the absence 
                of scheduled passenger aircraft service at an airport, 
                the Secretary may apportion in fiscal years 2004 and 
                2005 to the sponsor of the airport an amount equal to 
                the amount apportioned to that sponsor in fiscal year 
                2002 or 2003, whichever amount is greater, if the 
                Secretary finds that--
                            ``(i) the passenger boardings at the 
                        airport were below 10,000 in calendar year 
                        2002;
                            ``(ii) the airport had at least 10,000 
                        passenger boardings and scheduled passenger 
                        aircraft service in either calendar year 2000 
                        or 2001; and
                            ``(iii) the reason that passenger boardings 
                        described in clause (i) were below 10,000 was 
                        the decrease in passengers following the 
                        terrorist attacks of September 11, 2001.''.

SEC. 510. CARGO AIRPORTS.

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

SEC. 511. CONSIDERATIONS IN MAKING DISCRETIONARY GRANTS.

    Section 47115(d) is amended to read as follows:
    ``(d) Considerations.--
            ``(1) For capacity enhancement projects.--In selecting a 
        project for a grant to preserve and improve capacity funded in 
        whole or in part from the fund, the Secretary shall consider--
                    ``(A) the effect that the project will have on 
                overall national transportation system capacity;
                    ``(B) the benefit and cost of the project, 
                including, in the case of a project at a reliever 
                airport, the number of operations projected to be 
                diverted from a primary airport to the reliever airport 
                as a result of the project, as well as the cost savings 
                projected to be realized by users of the local airport 
                system;
                    ``(C) the financial commitment from non-United 
                States Government sources to preserve or improve 
                airport capacity;
                    ``(D) the airport improvement priorities of the 
                States to the extent such priorities are not in 
                conflict with subparagraphs (A) and (B); and
                    ``(E) the projected growth in the number of 
                passengers or aircraft that will be using the airport 
                at which the project will be carried out.
            ``(2) For all projects.--In selecting a project for a grant 
        described in paragraph (1), the Secretary shall consider 
        whether--
                    ``(A) funding has been provided for all other 
                projects qualifying for funding during the fiscal year 
                under this chapter that have attained a higher score 
                under the numerical priority system employed by the 
                Secretary in administering the fund; and
                    ``(B) the sponsor will be able to commence the work 
                identified in the project application in the fiscal 
                year in which the grant is made or within 6 months 
                after the grant is made, whichever is later.''.

SEC. 512. FLEXIBLE FUNDING FOR NONPRIMARY AIRPORT APPORTIONMENTS.

    (a) In General.--Section 47117(c) is amended to read as follows:
    ``(c) Use of Sponsor's Apportioned Amounts at Public Use 
Airports.--
            ``(1) Of sponsor.--An amount apportioned to a sponsor of an 
        airport under section 47114(c) or 47114(d)(3)(A) is available 
        for grants for any public-use airport of the sponsor included 
        in the national plan of integrated airport systems.
            ``(2) In same state or area.--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 section 47114(c) or 47114(d)(3)(A) if the 
        Secretary agrees to make the waived amount available for a 
        grant for another public-use airport in the same State or 
        geographical area as the airport, as determined by the 
        Secretary.''.
    (b) Project Grant Agreements.--Section 47108(a) is amended by 
inserting ``or 47114(d)(3)(A)'' after ``under section 47114(c)''.
    (c) Allowable Project Costs.--Section 47110 is further amended--
            (1) in subsection (b)(2)(C) by striking ``of this title'' 
        and inserting ``or section 47114(d)(3)(A)'';
            (2) in subsection (g)--
                    (A) by inserting ``or section 47114(d)(3)(A)'' 
                after ``of section 47114(c)''; and
                    (B) by striking ``of project'' and inserting ``of 
                the project''; and
            (3) by adding at the end the following:
    ``(j) Nonprimary Airports.--The Secretary may decide that the costs 
of revenue producing aeronautical support facilities, including fuel 
farms and hangars, are allowable for an airport development project at 
a nonprimary airport if the Government's share of such costs is paid 
only with funds apportioned to the airport sponsor under section 
47114(d)(3)(A) and if the Secretary determines that the sponsor has 
made adequate provision for financing airside needs of the airport.''.
    (d) Terminal Development Costs.--Section 47119(b) is amended--
            (1) by striking ``or'' at the end of paragraph (3);
            (2) by striking the period at the end of paragraph (4) and 
        inserting ``; or''; and
            (3) by adding at the end the following:
            ``(5) to a sponsor of a nonprimary airport, any part of 
        amounts apportioned to the sponsor for the fiscal year under 
        section 47114(d)(3)(A) for project costs allowable under 
        section 47110(d).''.

SEC. 513. USE OF APPORTIONED AMOUNTS.

    (a) Special Apportionment Categories.--Section 47117(e)(1)(A) is 
amended--
            (1) by striking ``of this title'' the first place it 
        appears and inserting a comma; and
            (2) by striking ``of this title'' the second place it 
        appears and inserting ``, for noise mitigation projects 
        approved in an environmental record of decision for an airport 
        development project under this title, for compatible land use 
        planning and projects carried out by State and local 
        governments under section 47140, and for airport development 
        described in section 47102(3)(F) or 47102(3)(K) to comply with 
        the Clean Air Act (42 U.S.C. 7401 et seq.)''.
    (b) Elimination of Super Reliever Set-Aside.--Section 
47117(e)(1)(C) is repealed.
    (c) Recovered Funds.--Section 47117 is further amended by adding at 
the end the following:
    ``(h) Treatment of Canceled or Reduced Grant Obligations.--For the 
purpose of determining compliance with a limitation, enacted in an 
appropriations Act, on the amount of grant obligations of funds made 
available by section 48103 that may be incurred in a fiscal year, an 
amount that is recovered by canceling or reducing a grant obligation of 
funds made available by section 48103 shall be treated as a negative 
obligation that is to be netted against the obligation limitation as 
enacted and thus may permit the obligation limitation to be exceeded by 
an equal amount.''.

SEC. 514. MILITARY AIRPORT PROGRAM.

    Subsections (e) and (f) of section 47118 are each amended by 
striking ``$7,000,000'' and inserting ``$10,000,000''.

SEC. 515. TERMINAL DEVELOPMENT COSTS.

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

SEC. 516. CONTRACT TOWERS.

    Section 47124(b) is amended--
            (1) in paragraph (1) by striking ``on December 30, 1987,'' 
        and inserting ``on date of enactment of the Flight 100--Century 
        of Aviation Reauthorization Act'';
            (2) in the heading for paragraph (3) by striking ``pilot'';
            (3) in paragraph (4)(C) by striking ``$1,100,000'' and 
        inserting ``$1,500,000''; and
            (4) by striking ``pilot'' each place it appears.

SEC. 517. AIRPORT SAFETY DATA COLLECTION.

    Section 47130 is amended to read as follows:
``Sec.  47130. Airport safety data collection
    ``Notwithstanding any other provision of law, the Administrator of 
the Federal Aviation Administration may award a contract, using sole 
source or limited source authority, or enter into a cooperative 
agreement with, or provide a grant from amounts made available under 
section 48103 to, a private company or entity for the collection of 
airport safety data. In the event that a grant is provided under this 
section, the United States Government's share of the cost of the data 
collection shall be 100 percent.''.

SEC. 518. AIRPORT PRIVATIZATION PILOT PROGRAM.

    (a) In General.--Section 47134(b)(1) is amended--
            (1) in subparagraph (A) by striking clauses (i) and (ii) 
        and inserting the following:
                            ``(i) in the case of a primary airport, by 
                        at least 65 percent of the scheduled air 
                        carriers serving the airport and by scheduled 
                        and nonscheduled air carriers whose aircraft 
                        landing at the airport during the preceding 
                        calendar year, had a total landed weight during 
                        the preceding calendar year of at least 65 
                        percent of the total landed weight of all 
                        aircraft landing at the airport during such 
                        year; or
                            ``(ii) by the Secretary at any nonprimary 
                        airport after the airport has consulted with at 
                        least 65 percent of the owners of aircraft 
                        based at that airport, as determined by the 
                        Secretary.'';
            (2) by redesignating subparagraph (B) as subparagraph (C); 
        and
            (3) by inserting after subparagraph (A) the following:
                    ``(B) Objection to exemption.--An air carrier shall 
                be deemed to have approved a sponsor's application for 
                an exemption under subparagraph (A) unless the air 
                carrier has submitted an objection, in writing, to the 
                sponsor within 60 days of the filing of the sponsor's 
                application with the Secretary, or within 60 days of 
                the service of the application upon that air carrier, 
                whichever is later.''.
    (b) Federal Share.--Section 47109(a) is amended--
            (1) by inserting ``and'' at the end of paragraph (3);
            (2) by striking paragraph (4); and
            (3) by redesignating paragraph (5) as paragraph (4).

SEC. 519. INNOVATIVE FINANCING TECHNIQUES.

    (a) Eligible Projects.--Section 47135(a) is amended--
            (1) in the first sentence by inserting after ``approve'' 
        the following: ``after the date of enactment of the Flight 
        100--Century of Aviation Reauthorization Act'';
            (2) in the first sentence by striking ``20'' and inserting 
        ``10''; and
            (3) by striking the second sentence and inserting the 
        following: ``Such projects shall be located at airports that 
        are not medium or large hub airports.''.
    (b) Innovative Financing Techniques.--Section 47135(c)(2) is 
amended--
            (1) by striking subparagraphs (A) and (B); and
            (2) by redesignating subparagraphs (C) and (D) as 
        subparagraphs (A) and (B), respectively.
    (c) Savings Clause.--The amendments made by this section shall not 
affect applications approved under section 47135 of title 49, United 
States Code, before the date of enactment of this Act.

SEC. 520. AIRPORT SECURITY PROGRAM.

    Section 47137 is amended--
            (1) by redesignating subsections (e) and (f) as subsections 
        (f) and (g), respectively; and
            (2) by inserting after subsection (d) the following:
    ``(e) Administration.--The Secretary, in cooperation with the 
Secretary of Homeland Security, shall administer the program authorized 
by this section.''.

SEC. 521. LOW-EMISSION AIRPORT VEHICLES AND INFRASTRUCTURE.

    (a) Emissions Credits.--Subchapter I of chapter 471 is amended by 
adding at the end the following:
``Sec.  47138. Emission credits for air quality projects
    ``(a) In General.--The Secretary of Transportation and the 
Administrator of the Environmental Protection Agency shall jointly 
agree on how to assure that airport sponsors receive appropriate 
emission credits for carrying out projects described in sections 
40117(a)(3)(G), 47102(3)(K), and 47102(3)(L). Such agreement must 
include, at a minimum, the following conditions:
            ``(1) The provision of credits is consistent with the Clean 
        Air Act (42 U.S.C. 7402 et seq.).
            ``(2) Credits generated by the emissions reductions are 
        kept by the airport sponsor and may only be used for purposes 
        of any current or future general conformity determination under 
        the Clean Air Act or as offsets under the Environmental 
        Protection Agency's new source review program for projects on 
        the airport or associated with the airport.
            ``(3) Credits are calculated and provided to airports on a 
        consistent basis nationwide.
            ``(4) Credits are provided to airport sponsors in a timely 
        manner.
            ``(5) The establishment of a method to assure the Secretary 
        that, for any specific airport project for which funding is 
        being requested, the appropriate credits will be granted.
    ``(b) Assurance of Receipt of Credits.--
            ``(1) In general.--As a condition for making a grant for a 
        project described in section 47102(3)(K), 47102(3)(L), or 47139 
        or as a condition for granting approval to collect or use a 
        passenger facility fee for a project described in section 
        40117(a)(3)(G), 47102(3)(K), 47102(3)(L), or 47139, the 
        Secretary must receive assurance from the State in which the 
        project is located, or from the Administrator of the 
        Environmental Protection Agency where there is a Federal 
        implementation plan, that the airport sponsor will receive 
        appropriate emission credits in accordance with the conditions 
        of this section.
            ``(2) Agreement on previously approved projects.--The 
        Secretary and the Administrator of the Environmental Protection 
        Agency shall jointly agree on how to provide emission credits 
        to airport projects previously approved under section 47136 
        under terms consistent with the conditions enumerated in this 
        section.''.
    (b) Airport Ground Support Equipment Emissions Retrofit Pilot 
Program.--Subchapter I of chapter 471 is further amended by adding at 
the end the following:
``Sec. 47139. Airport ground support equipment emissions retrofit pilot 
              program
    ``(a) In General.--The Secretary of Transportation shall carry out 
a pilot program at not more than 10 commercial service airports under 
which the sponsors of such airports may use an amount made available 
under section 48103 to retrofit existing eligible airport ground 
support equipment that burns conventional fuels to achieve lower 
emissions utilizing emission control technologies certified or verified 
by the Environmental Protection Agency.
    ``(b) Location in Air Quality Nonattainment or Maintenance Areas.--
A commercial service airport shall be eligible for participation in the 
pilot program only if the airport is located in an air quality 
nonattainment area (as defined in section 171(2) of the Clean Air Act 
(42 U.S.C. 7501(2)) or a maintenance area referred to in section 175A 
of such Act (42 U.S.C. 7505a).
    ``(c) Selection Criteria.--In selecting from among applicants for 
participation in the pilot program, the Secretary shall give priority 
consideration to applicants that will achieve the greatest air quality 
benefits measured by the amount of emissions reduced per dollar of 
funds expended under the pilot program.
    ``(d) Maximum Amount.--Not more than $500,000 may be expended under 
the pilot program at any single commercial service airport.
    ``(e) Guidelines.--The Secretary, in consultation with the 
Administrator of the Environmental Protection Agency, shall establish 
guidelines regarding the types of retrofit projects eligible under the 
pilot program by considering remaining equipment useful life, amounts 
of emission reduction in relation to the cost of projects, and other 
factors necessary to carry out this section. The Secretary may give 
priority to ground support equipment owned by the airport and used for 
airport purposes.
    ``(f) Eligible Equipment Defined.--In this section, the term 
`eligible equipment' means ground service or maintenance equipment that 
is located at the airport, is used to support aeronautical and related 
activities at the airport, and will remain in operation at the airport 
for the life or useful life of the equipment, whichever is earlier.''.
    (c) Addition to Airport Development.--Section 47102(3) is further 
amended by striking subparagraphs (K) and (L) and inserting the 
following:
                    ``(K) work necessary to construct or modify airport 
                facilities to provide low-emission fuel systems, gate 
                electrification, and other related air quality 
                improvements at a commercial service airport if the 
                airport is located in an air quality nonattainment or 
                maintenance area (as defined in sections 171(2) and 
                175A of the Clean Air Act (42 U.S.C. 7501(2), 7505a) 
                and if such project will result in an airport receiving 
                appropriate emission credits, as described in section 
                47138.
                    ``(L) converting vehicles and ground support 
                equipment owned by a commercial service airport to low-
                emission technology or acquiring for use at a 
                commercial service airport vehicles and ground support 
                equipment that include low-emission technology if the 
                airport is located in an air quality nonattainment area 
                (as defined in section 171(2) of the Clean Air Act (42 
                U.S.C. 7501(2)) or a maintenance area referred to in 
                section 175A of such Act (42 U.S.C. 7505a) and if such 
                project will result in an airport receiving appropriate 
                emission credits as described in section 47138.''.
    (d) Allowable Project Cost.--Section 47110(b) is further amended--
            (1) by striking ``and'' at the end of paragraph (4);
            (2) by striking the period at the end of paragraph (5) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(6) in the case of a project for acquiring for use at a 
        commercial service airport vehicles and ground support 
        equipment owned by an airport that is not described in section 
47102(3) and that include low-emission technology, if the total costs 
allowed for the project are not more than the incremental cost of 
equipping such vehicles or equipment with low-emission technology, as 
determined by the Secretary.''.
    (e) Low-Emission Technology Equipment.--Section 47102 (as amended 
by section 501 of this Act) is further amended by inserting after 
paragraph (10) the following:
            ``(11) `low-emission technology' means technology for 
        vehicles and equipment whose emission performance is the best 
        achievable under emission standards established by the 
        Environmental Protection Agency and that relies exclusively on 
        alternative fuels that are substantially non-petroleum based, 
        as defined by the Department of Energy, but not excluding 
        hybrid systems or natural gas powered vehicles.''.
    (f) Conforming Amendments.--The analysis of subchapter I of chapter 
471 is amended by adding at the end the following:

``47138. Emission credits for air quality projects.
``47139. Airport ground support equipment emissions retrofit pilot 
                            program.''.

SEC. 522. COMPATIBLE LAND USE PLANNING AND PROJECTS BY STATE AND LOCAL 
              GOVERNMENTS.

    (a) In General.--Subchapter I of chapter 471 is further amended by 
adding at the end the following:
``Sec. 47140. Compatible land use planning and projects by State and 
              local governments
    ``(a) In General.--The Secretary of Transportation may make grants 
from amounts set aside under section 47117(e)(1)(A) to States and units 
of local government for land use compatibility plans or projects 
resulting from those plans for the purposes of making the use of land 
areas around large hub airports and medium hub airports compatible with 
aircraft operations if--
            ``(1) the airport operator has not submitted a noise 
        compatibility program to the Secretary under section 47504 or 
        has not updated such program within the past 10 years; and
            ``(2) the land use plan meets the requirements of this 
        section and any project resulting from the plan meets such 
        requirements.
    ``(b) Eligibility.--In order to receive a grant under this section, 
a State or unit of local government must--
            ``(1) have the authority to plan and adopt land use control 
        measures, including zoning, in the planning area in and around 
        a large or medium hub airport;
            ``(2) provide written assurance to the Secretary that it 
        will work with the affected airport to identify and adopt such 
        measures; and
            ``(3) provide written assurance to the Secretary that it 
        will achieve, to the maximum extent possible, compatible land 
        uses consistent with Federal land use compatibility criteria 
        under section 47502(3) and that those compatible land uses will 
        be maintained.
    ``(c) Assurances.--The Secretary shall require a State or unit of 
local government to which a grant may be awarded under this section for 
a land use plan or a project resulting from such a plan to provide--
            ``(1) assurances satisfactory to the Secretary that the 
        plan--
                    ``(A) is reasonably consistent with the goal of 
                reducing existing noncompatible land uses and 
                preventing the introduction of additional noncompatible 
                land uses;
                    ``(B) addresses ways to achieve and maintain 
                compatible land uses, including zoning, building codes, 
                and any other projects under section 47504(a)(2) that 
                are within the authority of the State or unit of local 
                government to implement;
                    ``(C) uses noise contours provided by the airport 
                operator that are consistent with the airport operation 
                and planning, including any noise abatement measures 
                adopted by the airport operator as part of its own 
                noise mitigation efforts;
                    ``(D) does not duplicate, and is not inconsistent 
                with, the airport operator's noise compatibility 
                measures for the same area; and
                    ``(E) has received concurrence by the airport 
                operator prior to adoption by the State or unit of 
                local government; and
            ``(2) such other assurances as the Secretary determines to 
        be necessary to carry out this section.
    ``(d) Guidelines.--The Secretary shall establish guidelines to 
administer this section in accordance with the purposes and conditions 
described in this section. The Secretary may require the State or unit 
of local government to which a grant may be awarded under this section 
to provide progress reports and other information as the Secretary 
determines to be necessary to carry out this section.
    ``(e) Eligible Projects.--The Secretary may approve a grant under 
this section to a State or unit of local government for a land use 
compatibility project only if the Secretary is satisfied that the 
project is consistent with the guidelines established by the Secretary 
under this section, that the State or unit of local government has 
provided the assurances required by this section, that the Secretary 
has received evidence that the State or unit of local government has 
implemented (or has made provision to implement) those elements of the 
plan that are not eligible for Federal financial assistance, and that 
the project is not inconsistent with Federal standards.
    ``(f) Sunset.--This section shall not be in effect after September 
30, 2007.''.
    (b) Conforming Amendment.--The analysis of subchapter I of chapter 
471 is further amended by adding at the end the following:

``47140. Compatible land use planning and projects by State and local 
                            governments.''.

SEC. 523. PROHIBITION ON REQUIRING AIRPORTS TO PROVIDE RENT-FREE SPACE 
              FOR FEDERAL AVIATION ADMINISTRATION.

    (a) In General.--Subchapter I of chapter 471 is further amended by 
adding at the end the following:
``Sec. 47141. Prohibition on rent-free space requirements for Federal 
              Aviation Administration
    ``(a) In General.--The Secretary of Transportation may not require 
an airport sponsor to provide to the Federal Aviation Administration, 
without compensation, space in a building owned by the sponsor and 
costs associated with such space for building construction, 
maintenance, utilities, and other expenses.
    ``(b) Negotiated Agreements.--Subsection (a) does not prohibit--
            ``(1) the negotiation of agreements between the 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 
        without cost or at below-market rates; or
            ``(2) the Secretary of Transportation from requiring 
        airport sponsors to provide land without cost to the Federal 
        Aviation Administration for air traffic control facilities.''.
    (b) Conforming Amendment.--The analysis for subchapter I of chapter 
471 is further amended by adding at the end the following:

``47141. Prohibition on rent-free space requirements for Federal 
                            Aviation Administration.''.

SEC. 524. MIDWAY ISLAND AIRPORT.

    (a) Findings.--Congress finds that the continued operation of the 
Midway Island Airport in accordance with the standards of the Federal 
Aviation Administration applicable to commercial airports is critical 
to the safety of commercial, military, and general aviation in the mid-
Pacific Ocean region.
    (b) Memorandum of Understanding on Sale of Aircraft Fuel.--The 
Secretary of Transportation shall enter into a memorandum of 
understanding with the Secretaries of Defense, Interior, and Homeland 
Security to facilitate the sale of aircraft fuel on Midway Island at a 
price that will generate sufficient revenue to improve the ability of 
the airport to operate on a self-sustaining basis in accordance with 
the standards of the Federal Aviation Administration applicable to 
commercial airports. The memorandum shall also address the long-range 
potential of promoting tourism as a means to generate revenue to 
operate the airport.
    (c) Transfer of Navigation Aids at Midway Island Airport.--The 
Midway Island Airport may transfer, without consideration, to the 
Administrator the navigation aids at the airport. The Administrator 
shall accept the navigation aids and operate and maintain the 
navigation aids under criteria of the Administrator.
    (d) Funding to the Secretary of Interior for Midway Island 
Airport.--
            (1) In general.--Chapter 481 is amended by adding at the 
        end the following:
``Sec. 48114. Funding to the Secretary of Interior for Midway Island 
              Airport
    ``The following amounts shall be available (and shall remain 
available until expended) to the Secretary of Interior, out of the 
Airport and Airway Trust Fund established under section 9502 of the 
Internal Revenue Code of 1986 (26 U.S.C. 9502), for airport capital 
projects at the Midway Island Airport:
            ``(1) $750,000 for fiscal year 2004.
            ``(2) $2,500,000 for fiscal year 2005.
            ``(3) $1,000,000 for fiscal year 2006.
            ``(4) $1,000,000 for fiscal year 2007.''.
            (2) Conforming amendment.--The analysis for chapter 481 is 
        amended by adding at the end the following:

``48114. Funding to the Secretary of Interior for Midway Island 
                            Airport.''.

                                                  Union Calendar No. 72

108th CONGRESS

  1st Session

                               H. R. 2115

                          [Report No. 108-143]

_______________________________________________________________________

                                 A BILL

To amend title 49, United States Code, to reauthorize programs for the 
        Federal Aviation Administration, and for other purposes.

_______________________________________________________________________

                              June 6, 2003

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
```