In the Senate of the United States,

June 12, 2003.

Resolved, That the bill from the House of Representatives (H.R. 2115) entitled ‘‘An Act to amend title 49, United

States Code, to reauthorize programs for the Federal Aviation Administration, and for other purposes.’’, do pass with

the following

AMENDMENT:

Strike out all after the enacting clause and insert:

1 SECTION 1. SHORT TITLE; AMENDMENT OF TITLE 49.

2 (a) SHORT TITLE.—This Act may be cited as the

3 ‘‘Aviation Investment and Revitalization Vision Act’’.
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1 (b) AMENDMENT OF TITLE 49.—Except as otherwise

2 expressly provided, whenever in this Act an amendment or

3 repeal is expressed in terms of an amendment to, or a repeal

4 of, a section or other provision, the reference shall be consid5 ered to be made to a section or other provision of title 49,

6 United States Code.

7 SEC. 2. TABLE OF CONTENTS.

8 The table of contents for this Act is as follows:

Sec. 1. Short title; amendment of title 49.

Sec. 2. Table of contents.

TITLE I—REAUTHORIZATIONS; FAA MANAGEMENT

Sec. 101. Airport improvement program.

Sec. 102. Airway facilities improvement program.

Sec. 103. FAA operations.

Sec. 104. Research, engineering, and development.

Sec. 105. Other programs.

Sec. 106. Reorganization of the Air Traffic Services Subcommittee.

Sec. 107. Clarification of responsibilities of chief operating officer.

Sec. 108. Whistle-blower protection under Acquisition Management System.

TITLE II—AIRPORT DEVELOPMENT

Sec. 201. National capacity projects.

Sec. 202. Categorical exclusions.

Sec. 203. Alternatives analysis.

Sec. 204. Increase in apportionment for, and flexibility of, noise compatibility

planning programs.

Sec. 205. Secretary of Transportation to identify airport congestion-relief projects.

Sec. 206. Design-build contracting.

Sec. 207. Special rule for airport in Illinois.

Sec. 208. Elimination of duplicative requirements.

Sec. 209. Streamlining the passenger facility fee program.

Sec. 210. Quarterly status reports.

Sec. 211. Noise disclosure.

Sec. 212. Prohibition on requiring airports to provide rent-free space for FAA or

TSA.

Sec. 213. Special rules for fiscal year 2004.

Sec. 214. Agreements for operation of airport facilities.

Sec. 215. Public agencies.

Sec. 216. Flexible funding for nonprimary airport apportionments.

Sec. 217. Share of airport project costs.

Sec. 218. Pilot program for purchase of airport development rights.

Sec. 219. Gary/Chicago Airport funding.

Sec. 220. Civil penalty for closure of an airport without providing sufficient notice.
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Sec. 221. Anchorage air traffic control.

TITLE III—AIRLINE SERVICE DEVELOPMENT

Subtitle A—Program Enhancements

Sec. 301. Delay reduction meetings.

Sec. 302. Small community air service development pilot program.

Sec. 303. DOT study of competition and access problems at large and medium

hub airports.

Sec. 304. Competition disclosure requirement for large and medium hub airports.

Sec. 305. Location of shuttle service at Ronald Reagan Washington National Airport.

Sec. 306. Air carriers required to honor tickets for suspended service.

Subtitle B—Small Community and Rural Air Service Revitalization

Sec. 351. Reauthorization of essential air service program.

Sec. 352. Incentive program.

Sec. 353. Pilot programs.

Sec. 354. EAS program authority changes.

Sec. 355. One-year extension of EAS eligibility for communities terminated in

2003 due to decreased air travel.

Subtitle C—Financial Improvement Effort and Executive Compensation Report

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

compensation.

TITLE IV—AVIATION SECURITY

Sec. 401. Study of effectiveness of transportation security system.

Sec. 402. Aviation security capital fund.

Sec. 403. Technical amendments related to security-related airport development.

Sec. 404. Armed forces charters.

Sec. 405. Arming cargo pilots against terrorism.

Sec. 406. General aviation and air charters.

Sec. 407. Air defense identification zone.

Sec. 408. Report on passenger prescreening program.

Sec. 409. Removal of cap on TSA staffing level.

Sec. 410. Foreign repair station safety and security.

TITLE V—MISCELLANEOUS

Sec. 501. Extension of war risk insurance authority.

Sec. 502. Cost-sharing of air traffic modernization projects.

Sec. 503. Counterfeit or fraudulently represented parts violations.

Sec. 504. Clarifications to procurement authority.

Sec. 505. Judicial review.

Sec. 506. Civil penalties.

Sec. 507. Miscellaneous amendments.

Sec. 508. Low-emission airport vehicles and infrastructure.

Sec. 509. Low-emission airport vehicles and ground support equipment.

Sec. 510. Pacific emergency diversion airport.

Sec. 511. Gulf of Mexico aviation service improvements.

Sec. 512. Air traffic control collegiate training initiative.

Sec. 513. Air transportation oversight system plan.

Sec. 514. National small community air service development Ombudsman.
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Sec. 515. National commission on small community air service.

Sec. 516. Training certification for cabin crew.

Sec. 517. Aircraft manufacturer insurance.

Sec. 518. Ground-based precision navigational aids.

Sec. 519. Standby power efficiency program.

Sec. 520. Certain interim and final rules.

Sec. 521. Air fares for members of armed forces.

Sec. 522. Modification of requirements regarding training to operate aircraft.

Sec. 523. Exemption for Jackson Hole Airport.

Sec. 524. Distance requirement applicable to eligibility for essential air service

subsidies.

Sec. 525. Reimbursement for losses incurred by general aviation entities.

Sec. 526. Recommendations concerning travel agents.

Sec. 527. Pass-through of refunded passenger security fees to code-share partners.

Sec. 528. Air carrier citizenship.

Sec. 529. United States presence in global air cargo industry.

TITLE VI—SECOND CENTURY OF FLIGHT

Sec. 601. Findings.

Subtitle A—The Office of Aerospace and Aviation Liaison

Sec. 621. Office of Aerospace and Aviation Liaison.

Sec. 622. National Air Traffic Management System Development Office.

Sec. 623. Report on certain market developments and government policies.

Sec. 624. Transfer of certain air traffic control functions prohibited.

Subtitle B—Technical Programs

Sec. 641. Aerospace and aviation safety workforce initiative.

Sec. 642. Scholarships for service.

Subtitle C—FAA Research, Engineering, and Development

Sec. 661. Research program to improve airfield pavements.

Sec. 662. Ensuring appropriate standards for airfield pavements.

Sec. 663. Assessment of wake turbulence research and development program.

Sec. 664. Air quality in aircraft cabins.

Sec. 665. International role of the FAA.

Sec. 666. FAA report on other nations’ safety and technological advancements.

Sec. 667. Development of analytical tools and certification methods.

Sec. 668. Pilot program to provide incentives for development of new technologies.

Sec. 669. FAA center for excellence for applied research and training in the use

of advanced materials in transport aircraft.

Sec. 670. FAA certification of design organizations.

Sec. 671. Report on long term environmental improvements.

TITLE VII—EXTENSION OF AIRPORT AND AIRWAY TRUST FUND

EXPENDITURE AUTHORITY

Sec. 701. Extension of expenditure authority.
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1 TITLE I—REAUTHORIZATIONS;

2 FAA MANAGEMENT

3 SEC. 101. AIRPORT IMPROVEMENT PROGRAM.

4 (a) AUTHORIZATION OF APPROPRIATIONS.—Section

5 48103 is amended—

6 (1) by inserting ‘‘(a) IN GENERAL.—’’ before

7 ‘‘The’’;

8 (2) by striking ‘‘and’’ in paragraph (4);

9 (3) by striking ‘‘2003.’’ in paragraph (5) and in10 serting ‘‘2003;’’;

11 (4) by inserting after paragraph (5) the fol12 lowing:

13 ‘‘(6) $3,400,000,000 for fiscal year 2004;

14 ‘‘(7) $3,500,000,000 for fiscal year 2005; and

15 ‘‘(8) $3,600,000,000 for fiscal year 2006.’’; and

16 (5) by adding at the end the following:

17 ‘‘(b) ADMINISTRATIVE EXPENSES.—From the amounts

18 authorized by paragraphs (6) through (8) of subsection (a),

19 there shall be available for administrative expenses relating

20 to the airport improvement program, passenger facility fee

21 approval and oversight, national airport system planning,

22 airport standards development and enforcement, airport

23 certification, airport-related environmental activities (in24 cluding legal service), to remain available until expended—

25 ‘‘(1) for fiscal year 2004, $69,737,000;
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1 ‘‘(2) for fiscal year 2005, $71,816,000; and

2 ‘‘(3) for fiscal year 2006, $74,048,000.’’.

3 (b) OBLIGATIONAL AUTHORITY.—Section 47104(c) is

4 amended by striking ‘‘2003,’’ and inserting ‘‘2006,’’.

5 SEC. 102. AIRWAY FACILITIES IMPROVEMENT PROGRAM.

6 (a) IN GENERAL.—Section 48101(a) is amended by

7 adding at the end the following:

8 ‘‘(6) $2,916,000,000 for fiscal year 2004.

9 ‘‘(7) $2,971,000,000 for fiscal year 2005.

10 ‘‘(8) $3,030,000,000 for fiscal year 2006.’’.

11 (b) BIANNUAL REPORTS.—Beginning 180 days after

12 the date of enactment of Act, the Administrator of the Fed13 eral Aviation Administration shall transmit a report to the

14 Senate Committee on Commerce, Science, and Transpor15 tation and the House of Representatives Committee on

16 Transportation and Infrastructure every 6 months that

17 describes—

18 (1) the 10 largest programs funded under section

19 48101(a) of title 49, United States Code;

20 (2) any changes in the budget for such programs;

21 (3) the program schedule; and

22 (4) technical risks associated with the programs.

23 SEC. 103. FAA OPERATIONS.

24 (a) IN GENERAL.—Section 106(k)(1) is amended—

25 (1) by striking ‘‘and’’ in subparagraph (C);
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1 (2) by striking ‘‘2003.’’ in subparagraph (D)

2 and inserting ‘‘2003;’’; and

3 (3) by adding at the end the following:

4 ‘‘(E) $7,591,000,000 for fiscal year 2004;

5 ‘‘(F) $7,732,000,000 for fiscal year 2005;

6 and

7 ‘‘(G) $7,889,000,000 for fiscal year 2006.’’.

8 (b) ANNUAL REPORT.—Beginning with the submission

9 of the Budget of the United States to the Congress for fiscal

10 year 2004, the Administrator of the Federal Aviation Ad11 ministration shall transmit a report to the Senate Com12 mittee on Commerce, Science, and Transportation and the

13 House of Representatives Committee on Transportation and

14 Infrastructure that describes the overall air traffic controller

15 staffing plan, including strategies to address anticipated re16 tirement and replacement of air traffic controllers.

17 SEC. 104. RESEARCH, ENGINEERING, AND DEVELOPMENT.

18 (a) AMOUNTS AUTHORIZED.—Section 48102(a) is

19 amended—

20 (1) by striking ‘‘and’’ at the end of paragraph

21 (7);

22 (2) by striking the period at the end of para23 graph (8) and inserting a semicolon; and

24 (3) by adding at the end the following:
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1 ‘‘(9) for fiscal year 2004, $289,000,000,

2 including—

3 ‘‘(A) $200,000,000 to improve aviation safe4 ty, including icing, crashworthiness, and aging

5 aircraft;

6 ‘‘(B) $18,000,000 to improve the efficiency

7 of the air traffic control system;

8 ‘‘(C) $27,000,000 to reduce the environ9 mental impact of aviation;

10 ‘‘(D) $16,000,000 to improve the efficiency

11 of mission support; and

12 ‘‘(E) $28,000,000 to improve the durability

13 and maintainability of advanced material struc14 tures in transport airframe structures;

15 ‘‘(10) for fiscal year 2005, $304,000,000,

16 including—

17 ‘‘(A) $211,000,000 to improve aviation safe18 ty;

19 ‘‘(B) $19,000,000 to improve the efficiency

20 of the air traffic control system;

21 ‘‘(C) $28,000,000 to reduce the environ22 mental impact of aviation;

23 ‘‘(D) $17,000,000 to improve the efficiency

24 of mission support; and
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1 ‘‘(E) $29,000,000 to improve the durability

2 and maintainability of advanced material struc3 tures in transport airframe structures; and

4 ‘‘(11) for fiscal year 2006, $317,000,000,

5 including—

6 ‘‘(A) $220,000,000 to improve aviation safe7 ty;

8 ‘‘(B) $20,000,000 to improve the efficiency

9 of the air traffic control system;

10 ‘‘(C) $29,000,000 to reduce the environ11 mental impact of aviation;

12 ‘‘(D) $18,000,000 to improve the efficiency

13 of mission support; and

14 ‘‘(E) $30,000,000 to improve the durability

15 and maintainability of advanced material struc16 tures in transport airframe structures.’’.

17 SEC. 105. OTHER PROGRAMS.

18 Section 106 of the Wendell H. Ford Aviation Invest19 ment and Reform Act for the 21st Century is amended—

20 (1) by striking ‘‘2003’’ in subsection (a)(1)(A)

21 and subsection (c)(2) and inserting ‘‘2006’’; and

22 (2) by striking ‘‘2003,’’ in subsection (a)(2) and

23 inserting ‘‘2006,’’.
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1 SEC. 106. REORGANIZATION OF THE AIR TRAFFIC SERVICES

2 SUBCOMMITTEE.

3 (a) IN GENERAL.—Section 106 is amended—

4 (1) by redesignating subsections (q) and (r) as

5 subsections (r) and (s), respectively; and

6 (2) by inserting after subsection (p) the fol7 lowing:

8 ‘‘(q) AIR TRAFFIC MANAGEMENT COMMITTEE.—

9 ‘‘(1) ESTABLISHMENT.—The Secretary of Trans10 portation shall establish an advisory committee which

11 shall be known as the Air Traffic Services Committee

12 (in this subsection referred to as the ‘Committee’).

13 ‘‘(2) MEMBERSHIP.—

14 ‘‘(A) COMPOSITION AND APPOINTMENT.—

15 The Committee shall be composed of—

16 ‘‘(i) the Administrator of the Federal

17 Aviation Administration, who shall serve as

18 chair; and

19 ‘‘(ii) 4 members, to be appointed by the

20 Secretary, after consultation with the Com21 mittee on Transportation and Infrastruc22 ture of the House of Representatives, and

23 the Committee on Commerce, Science, and

24 Transportation of the Senate.

25 ‘‘(B) NO FEDERAL OFFICER OR EM26 PLOYEE.—No member appointed under subpara-
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1 graph (A)(ii) may serve as an officer or em2 ployee of the United States Government while

3 serving as a member of the Committee.

4 ‘‘(C) ELIGIBILITY.—Members appointed

5 under subparagraph (A)(ii) shall—

6 ‘‘(i) have a fiduciary responsibility to

7 represent the public interest;

8 ‘‘(ii) be citizens of the United States;

9 and

10 ‘‘(iii) be appointed without regard to

11 political affiliation and solely on the basis

12 of their professional experience and exper13 tise in one or more of the following areas:

14 ‘‘(I) Management of large service

15 organizations.

16 ‘‘(II) Customer service.

17 ‘‘(III) Management of large pro18 curements.

19 ‘‘(IV) Information and commu20 nications technology.

21 ‘‘(V) Organizational development.

22 ‘‘(VI) Labor relations.

23 At least one of such members should have a

24 background in managing large organiza25 tions successfully. In the aggregate, such
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1 members should collectively bring to bear

2 expertise in all of the areas described in

3 subclauses (I) through (VI).

4 ‘‘(D) PROHIBITIONS ON MEMBERS OF COM5 MITTEE.—No member appointed under subpara6 graph (A)(ii) may—

7 ‘‘(i) have a pecuniary interest in, or

8 own stock in or bonds of, an aviation or

9 aeronautical enterprise, except an interest

10 in a diversified mutual fund or an interest

11 that is exempt from the application of sec12 tion 208 of title 18;

13 ‘‘(ii) engage in another business related

14 to aviation or aeronautics; or

15 ‘‘(iii) be a member of any organization

16 that engages, as a substantial part of its ac17 tivities, in activities to influence aviation18 related legislation.

19 ‘‘(E) CLAIMS AGAINST MEMBERS.—

20 ‘‘(i) IN GENERAL.—A member ap21 pointed under subparagraph (A)(ii) shall

22 have no personal liability under Federal

23 law with respect to any claim arising out

24 of or resulting from an act or omission by

25 such member within the scope of service as
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1 a member of the Air Traffic Services Com2 mittee.

3 ‘‘(ii) EFFECT ON OTHER LAW.—This

4 subparagraph shall not be construed—

5 ‘‘(I) to affect any other immunity

6 or protection that may be available to

7 a member of the Committee under ap8 plicable law with respect to such trans9 actions;

10 ‘‘(II) to affect any other right or

11 remedy against the United States

12 under applicable law; or

13 ‘‘(III) to limit or alter in any

14 way the immunities that are available

15 under applicable law for Federal offi16 cers and employees.

17 ‘‘(F) ETHICAL CONSIDERATIONS.—

18 ‘‘(i) FINANCIAL DISCLOSURE.—During

19 the entire period that an individual ap20 pointed under subparagraph (A)(ii) is a

21 member of the Committee, such individual

22 shall be treated as serving as an officer or

23 employee referred to in section 101(f) of the

24 Ethics in Government Act of 1978 for pur25 poses of title I of such Act; except that sec-
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1 tion 101(d) of such Act shall apply without

2 regard to the number of days of service in

3 the position.

4 ‘‘(ii) RESTRICTIONS ON POST-EMPLOY5 MENT.—For purposes of section 207(c) of

6 title 18, an individual appointed under

7 subparagraph (A)(ii) shall be treated as an

8 employee referred to in section

9 207(c)(2)(A)(i) of such title during the en10 tire period the individual is a member of

11 the Committee; except that subsections

12 (c)(2)(B) and (f) of section 207 of such title

13 shall not apply.

14 ‘‘(G) TERMS FOR AIR TRAFFIC SERVICES

15 COMMITTEE MEMBERS.—A member appointed

16 under subparagraph (A)(ii) shall be appointed

17 for a term of 5 years.

18 ‘‘(H) REAPPOINTMENT.—An individual

19 may not be appointed under subparagraph

20 (A)(ii) to more than two 5-year terms.

21 ‘‘(I) VACANCY.—Any vacancy on the Com22 mittee shall be filled in the same manner as the

23 original appointment. Any member appointed to

24 fill a vacancy occurring before the expiration of

25 the term for which the member’s predecessor was
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1 appointed shall be appointed for the remainder

2 of that term.

3 ‘‘(J) CONTINUATION IN OFFICE.—A member

4 whose term expires shall continue to serve until

5 the date on which the member’s successor takes

6 office.

7 ‘‘(K) REMOVAL.—Any member appointed

8 under subparagraph (A)(ii) may be removed for

9 cause by the Secretary.

10 ‘‘(3) GENERAL RESPONSIBILITIES.—

11 ‘‘(A) OVERSIGHT.—The Committee shall

12 oversee the administration, management, con13 duct, direction, and supervision of the air traffic

14 control system.

15 ‘‘(B) CONFIDENTIALITY.—The Committee

16 shall ensure that appropriate confidentiality is

17 maintained in the exercise of its duties.

18 ‘‘(4) SPECIFIC RESPONSIBILITIES.—The Com19 mittee shall have the following specific responsibil20 ities:

21 ‘‘(A) STRATEGIC PLANS.—To review, ap22 prove, and monitor the strategic plan for the air

23 traffic control system, including the establish24 ment of—

25 ‘‘(i) a mission and objectives;
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1 ‘‘(ii) standards of performance relative

2 to such mission and objectives, including

3 safety, efficiency, and productivity; and

4 ‘‘(iii) annual and long-range strategic

5 plans.

6 ‘‘(B) MODERNIZATION AND IMPROVE7 MENT.—To review and approve—

8 ‘‘(i) methods to accelerate air traffic

9 control modernization and improvements in

10 aviation safety related to air traffic control;

11 and

12 ‘‘(ii) procurements of air traffic control

13 equipment in excess of $100,000,000.

14 ‘‘(C) OPERATIONAL PLANS.—To review the

15 operational functions of the air traffic control

16 system, including—

17 ‘‘(i) plans for modernization of the air

18 traffic control system;

19 ‘‘(ii) plans for increasing productivity

20 or implementing cost-saving measures; and

21 ‘‘(iii) plans for training and edu22 cation.

23 ‘‘(D) MANAGEMENT.—To—
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1 ‘‘(i) review and approve the Adminis2 trator’s appointment of a Chief Operating

3 Officer under section 106(s);

4 ‘‘(ii) review the Administrator’s selec5 tion, evaluation, and compensation of sen6 ior executives of the Administration who

7 have program management responsibility

8 over significant functions of the air traffic

9 control system;

10 ‘‘(iii) review and approve the Adminis11 trator’s plans for any major reorganization

12 of the Administration that would impact on

13 the management of the air traffic control

14 system;

15 ‘‘(iv) review and approve the Adminis16 trator’s cost accounting and financial man17 agement structure and technologies to help

18 ensure efficient and cost-effective air traffic

19 control operation; and

20 ‘‘(v) review the performance and com21 pensation of managers responsible for major

22 acquisition projects, including the ability of

23 the managers to meet schedule and budget

24 targets.

25 ‘‘(E) BUDGET.—To—
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1 ‘‘(i) review and approve the budget re2 quest of the Administration related to the

3 air traffic control system prepared by the

4 Administrator;

5 ‘‘(ii) submit such budget request to the

6 Secretary; and

7 ‘‘(iii) ensure that the budget request

8 supports the annual and long-range stra9 tegic plans.

10 ‘‘(5) CONGRESSIONAL REVIEW OF PRE-OMB

11 BUDGET REQUEST.—The Secretary shall submit the

12 budget request referred to in paragraph (4)(E)(ii) for

13 any fiscal year to the President who shall transmit

14 such request, without revision, to the Committees on

15 Transportation and Infrastructure and Appropria16 tions of the House of Representatives and the Com17 mittees on Commerce, Science, and Transportation

18 and Appropriations of the Senate, together with the

19 President’s annual budget request for the Federal

20 Aviation Administration for such fiscal year.

21 ‘‘(6) COMMITTEE PERSONNEL MATTERS.—

22 ‘‘(A) COMPENSATION OF MEMBERS.—Each

23 member of the Committee, other than the chair,

24 shall be compensated at a rate of $25,000 per

25 year.
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1 ‘‘(B) STAFF.—The chair of the Committee

2 may appoint and terminate any personnel that

3 may be necessary to enable the Committee to per4 form its duties.

5 ‘‘(C) PROCUREMENT OF TEMPORARY AND

6 INTERMITTENT SERVICES.—The chair of the

7 Committee may procure temporary and inter8 mittent services under section 3109(b) of title 5,

9 United States Code.

10 ‘‘(7) ADMINISTRATIVE MATTERS.—

11 ‘‘(A) POWERS OF CHAIR.—Except as other12 wise provided by a majority vote of the Com13 mittee, the powers of the chair shall include—

14 ‘‘(i) establishing subcommittees;

15 ‘‘(ii) setting meeting places and times;

16 ‘‘(iii) establishing meeting agendas;

17 and

18 ‘‘(iv) developing rules for the conduct

19 of business.

20 ‘‘(B) MEETINGS.—The Committee shall

21 meet at least quarterly and at such other times

22 as the chair determines appropriate.

23 ‘‘(C) QUORUM.—Three members of the Com24 mittee shall constitute a quorum. A majority of
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1 members present and voting shall be required for

2 the Committee to take action.

3 ‘‘(D) APPLICATION OF SUBSECTION (p) PRO4 VISIONS.—The following provisions of subsection

5 (p) apply to the Committee to the same extent as

6 they apply to the Management Advisory Council:

7 ‘‘(i) Paragraph (4)(C) (relating to ac8 cess to documents and staff).

9 ‘‘(ii) Paragraph (5) (relating to non10 application of Federal Advisory Committee

11 Act).

12 ‘‘(iii) Paragraph (6)(G) (relating to

13 travel and per diem).

14 ‘‘(iv) Paragraph (6)(H) (relating to

15 detail of personnel).

16 ‘‘(8) ANNUAL REPORT.—The Committee shall

17 each year report with respect to the conduct of its re18 sponsibilities under this title to the Administrator,

19 the Management Advisory Council, the Committee on

20 Transportation and Infrastructure of the House of

21 Representatives, and the Committee on Commerce,

22 Science, and Transportation of the Senate.’’.

23 (b) CONFORMING AMENDMENTS.—

24 (1) Subsection (p) of section 106 is amended—
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1 (A) by striking ‘‘18’’ in paragraph (2) and

2 inserting ‘‘13’’;

3 (B) by inserting ‘‘and’’ after the semicolon

4 in subparagraph (C) of paragraph (2);

5 (C) by striking ‘‘Transportation; and’’ in

6 subparagraph (D) of paragraph (2) and insert7 ing ‘‘Transportation.’’;

8 (D) by striking subparagraph (E) of para9 graph (2);

10 (E) by striking paragraph (3) and inserting

11 the following:

12 ‘‘(3) NO FEDERAL OFFICER OR EMPLOYEE.—No

13 member appointed under paragraph (2)(C) may serve

14 as an officer or employee of the United States Govern15 ment while serving as a member of the Council.’’;

16 (F) by striking subparagraphs (C), (D),

17 (H), and (I) of paragraph (6) and redesignating

18 subparagraphs (E), (F), (G), (J), (K), and (L)

19 as subparagraphs (C), (D), (E), (F), (G), and

20 (H), respectively; and

21 (G) by striking paragraphs (7) and (8).

22 (2) Section 106(s) (as redesignated by subsection

23 (a) of this section) is amended—

24 (A) by striking ‘‘Air Traffic Services Sub25 committee of the Aviation Management Advisory
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1 Council.’’ and inserting ‘‘Air Traffic Services

2 Committee.’’ in paragraphs (1)(A) and (2)(A);

3 and

4 (B) by striking ‘‘Air Traffic Services Sub5 committee of the Aviation Management Advisory

6 Council,’’ and inserting ‘‘Air Traffic Services

7 Committee,’’ in paragraph (3).

8 (3) Section 106 is amended by adding at the end

9 the following:

10 ‘‘(t) AIR TRAFFIC CONTROL SYSTEM DEFINED.—In

11 this section, the term ‘air traffic control system’ has the

12 meaning such term has under section 40102(a).’’.

13 (c) TRANSITION FROM AIR TRAFFIC SERVICE SUB14 COMMITTEE TO AIR TRAFFIC SERVICE COMMITTEE.—

15 (1) TERMINATION OF MANAGEMENT ADVISORY

16 COUNCIL MEMBERSHIP.—Effective on the day after

17 the date of enactment of this Act, any member of the

18 Management Advisory Council appointed under sec19 tion 106(p)(2)(E) of title 49, United States Code, (as

20 such section was in effect on the day before such date

21 of enactment) who is a member of the Council on such

22 date of enactment shall cease to be a member of the

23 Council.

24 (2) COMMENCEMENT OF MEMBERSHIP ON AIR

25 TRAFFIC SERVICES COMMITTEE.—Effective on the day
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1 after the date of enactment of this Act, any member

2 of the Management Advisory Council whose member3 ship is terminated by paragraph (1) shall become a

4 member of the Air Traffic Services Committee as pro5 vided by section 106(q)(2)(G) of title 49, United

6 States Code, to serve for the remainder of the term to

7 which that member was appointed to the Council.

8 SEC. 107. CLARIFICATION OF RESPONSIBILITIES OF CHIEF

9 OPERATING OFFICER.

10 Section 106(s) (as redesignated by section 106(a)(1) of

11 this Act) is amended—

12 (1) by striking ‘‘Transportation and Congress’’

13 in paragraph (4) and inserting ‘‘Transportation, the

14 Committee on Transportation and Infrastructure of

15 the House of Representatives, and the Committee on

16 Commerce, Science, and Transportation of the Sen17 ate,’’;

18 (2) by striking ‘‘develop a strategic plan of the

19 Administration for the air traffic control system, in20 cluding the establishment of—’’ in paragraph (5)(A)

21 and inserting ‘‘implement the strategic plan of the

22 Administration for the air traffic control system in

23 order to further—’’;

24 (3) by striking ‘‘To review the operational func25 tions of the Administration,’’ in paragraph (5)(B)
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1 and inserting ‘‘To oversee the day-to-day operational

2 functions of the Administration for air traffic con3 trol,’’;

4 (4) by striking ‘‘system prepared by the Admin5 istrator;’’ in paragraph (5)(C)(i) and inserting ‘‘sys6 tem;’’;

7 (5) by striking ‘‘Administrator and the Secretary

8 of Transportation;’’ in paragraph (5)(C)(ii) and in9 serting ‘‘Administrator;’’; and

10 (6) by striking paragraph (5)(C)(iii) and insert11 ing the following:

12 ‘‘(iii) ensure that the budget request

13 supports the agency’s annual and long14 range strategic plans for air traffic control

15 services.’’.

16 SEC. 108. WHISTLE-BLOWER PROTECTION UNDER ACQUISI17 TION MANAGEMENT SYSTEM.

18 Section 40110(d)(2)(C) is amended by striking ‘‘355).’’

19 and inserting ‘‘355), except for section 315 (41 U.S.C. 265).

20 For the purpose of applying section 315 of that Act to the

21 system, the term ‘executive agency’ is deemed to refer to the

22 Federal Aviation Administration.’’.
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1 TITLE II—AIRPORT

2 DEVELOPMENT

3 SEC. 201. NATIONAL CAPACITY PROJECTS.

4 (a) IN GENERAL.—Part B of subtitle VII is amended

5 by adding at the end the following:

‘‘CHAPTER 477. NATIONAL CAPACITY PROJECTS

‘‘47701. Capacity enhancement.

‘‘47702. Designation of national capacity projects.

‘‘47703. Expedited coordinated environmental review process; project coordinators

and environment impact teams.

‘‘47704. Compatible land use initiative for national capacity projects.

‘‘47705. Air traffic procedures at national capacity projects.

‘‘47706. Pilot program for environmental review at national capacity projects.

‘‘47707. Definitions.

6 ‘‘§ 47701. Capacity enhancement

7 ‘‘(a) IN GENERAL.—Within 30 days after the date of

8 enactment of the Aviation Investment and Revitalization

9 Vision Act, the Secretary of Transportation shall identify

10 those airports among the 31 airports covered by the Federal

11 Aviation Administration’s Airport Capacity Benchmark

12 Report 2001 with delays that significantly affect the na13 tional air transportation system.

14 ‘‘(b) TASK FORCE; CAPACITY ENHANCEMENT

15 STUDY.—

16 ‘‘(1) IN GENERAL.—The Secretary shall direct

17 any airport identified by the Secretary under sub18 section (a) that is not engaged in a runway expan19 sion process and has not initiated a capacity en-
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1 hancement study (or similar capacity assessment)

2 since 1996—

3 ‘‘(A) to establish a delay reduction task

4 force to study means of increasing capacity at

5 the airport, including air traffic, airline sched6 uling, and airfield expansion alternatives; or

7 ‘‘(B) to conduct a capacity enhancement

8 study.

9 ‘‘(2) SCOPE.—The scope of the study shall be de10 termined by the airport and the Federal Aviation Ad11 ministration, and where appropriate shall consider

12 regional capacity solutions.

13 ‘‘(3) RECOMMENDATIONS SUBMITTED TO SEC14 RETARY.—

15 ‘‘(A) TASK FORCE.—A task force established

16 under this subsection shall submit a report con17 taining its findings and conclusions, together

18 with any recommendations for capacity enhance19 ment at the airport, to the Secretary within 9

20 months after the task force is established.

21 ‘‘(B) CES.—A capacity enhancement study

22 conducted under this subsection shall be sub23 mitted, together with its findings and conclu24 sions, to the Secretary as soon as the study is

25 completed.
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1 ‘‘(c) RUNWAY EXPANSION AND RECONFIGURATION.—

2 If the report or study submitted under subsection (b)(3) in3 cludes a recommendation for the construction or reconfig4 uration of runways at the airport, then the Secretary and

5 the airport shall complete the planning and environmental

6 review process within 5 years after report or study is sub7 mitted to the Secretary. The Secretary may extend the 5-

8 year deadline under this subsection for up to 1 year if the

9 Secretary determines that such an extension is necessary

10 and in the public interest. The Secretary shall notify the

11 Senate Committee on Commerce, Science, and Transpor12 tation, and to the House of Representatives Committee on

13 Transportation and Infrastructure of any such extension.

14 ‘‘(d) AIRPORTS THAT DECLINE TO UNDERTAKE EX15 PANSION PROJECTS.—

16 ‘‘(1) IN GENERAL.—If an airport at which the

17 construction or reconfiguration of runways is rec18 ommended does not take action to initiate a planning

19 and environmental assessment process for the con20 struction or reconfiguration of those runways within

21 30 days after the date on which the report or study

22 is submitted to the Secretary, then—

23 ‘‘(A) the airport shall be ineligible for plan24 ning and other expansion funds under sub-
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1 chapter I of chapter 471, notwithstanding any

2 provision of that subchapter to the contrary; and

3 ‘‘(B) no passenger facility fee may be ap4 proved at that airport during the 5-year period

5 beginning 30 days after the date on which the re6 port or study is submitted to the Secretary, for—

7 ‘‘(i) projects that, but for subparagraph

8 (A), could have been funded under chapter

9 471; or

10 ‘‘(ii) any project other than on-airport

11 airfield-side capacity or safety-related

12 projects.

13 ‘‘(2) SAFETY-RELATED AND ENVIRONMENTAL

14 PROJECTS EXCEPTED.—Paragraph (1) does not apply

15 to the use of funds for safety-related, security, or envi16 ronment projects.

17 ‘‘(e) AIRPORTS THAT TAKE ACTION.—The Secretary

18 shall take all actions possible to expedite funding and pro19 vide options for funding to any airport undertaking run20 way construction or reconfiguration projects in response to

21 recommendations by its task force.

22 ‘‘§ 47702. Designation of national capacity projects

23 ‘‘(a) IN GENERAL.—In response to a petition from an

24 airport sponsor, or in the case of an airport on the list

25 of airports covered by the Federal Aviation Administra-
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1 tion’s Airport Capacity Benchmarks study, the Secretary

2 of Transportation may designate an airport development

3 project as a national capacity project if the Secretary deter4 mines that the project to be designated will significantly

5 enhance the capacity of the national air transportation sys6 tem.

7 ‘‘(b) DESIGNATION TO REMAIN IN EFFECT FOR 5

8 YEARS.—The designation of a project as a national capac9 ity project under paragraph (1) shall remain in effect for

10 5 years. The Secretary may extend the 5-year period for

11 up to 2 additional years upon request if the Secretary finds

12 that substantial progress is being made toward completion

13 of the project.

14 ‘‘§ 47703. Expedited coordinated environmental re15 view process; project coordinators and en16 vironment impact teams

17 ‘‘(a) IN GENERAL.—The Secretary of Transportation

18 shall implement an expedited coordinated environmental

19 review process for national capacity projects that—

20 ‘‘(1) provides for better coordination among the

21 Federal, regional, State, and local agencies concerned

22 with the preparation of environmental impact state23 ments or environmental assessments under the Na24 tional Environmental Policy Act of 1969 (42 U.S.C.

25 4321 et seq.);
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1 ‘‘(2) provides for an expedited and coordinated

2 process in the conduct of environmental reviews that

3 ensures that, where appropriate, the reviews are done

4 concurrently and not consecutively; and

5 ‘‘(3) provides for a date certain for completing

6 all environmental reviews.

7 ‘‘(b) HIGH PRIORITY FOR AIRPORT ENVIRONMENTAL

8 REVIEWS.—Each department and agency of the United

9 States Government with jurisdiction over environmental re10 views shall accord any such review involving a national

11 capacity project the highest possible priority and conduct

12 the review expeditiously. If the Secretary finds that any

13 such department or agency is not complying with the re14 quirements of this subsection, the Secretary shall notify the

15 Senate Committee on Commerce, Science, and Transpor16 tation, and to the House of Representatives Committee on

17 Transportation and Infrastructure immediately.

18 ‘‘(c) PROJECT COORDINATORS; EIS TEAMS.—

19 ‘‘(1) DESIGNATION.—For each project designated

20 by the Secretary as a national capacity project under

21 subsection (a) for which an environmental impact

22 statement or environmental assessment must be filed,

23 the Secretary shall—

24 ‘‘(A) designate a project coordinator within

25 the Department of Transportation; and
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1 ‘‘(B) establish an environmental impact

2 team within the Department.

3 ‘‘(2) FUNCTION.—The project coordinator and

4 the environmental impact team shall—

5 ‘‘(A) coordinate the activities of all Federal,

6 State, and local agencies involved in the project;

7 ‘‘(B) to the extent possible, working with

8 Federal, State and local officials, reduce and

9 eliminate duplicative and overlapping Federal,

10 State, and local permit requirements;

11 ‘‘(C) to the extent possible, eliminate dupli12 cate Federal, State, and local environmental re13 view procedures; and

14 ‘‘(D) provide direction for compliance with

15 all applicable Federal, State, and local environ16 mental requirements for the project.

17 ‘‘§ 47704. Compatible land use initiative for national

18 capacity projects

19 ‘‘(a) IN GENERAL.—The Secretary of Transportation

20 may make grants under chapter 471 to States and units

21 of local government for land use compatibility plans di22 rectly related to national capacity projects for the purposes

23 of making the use of land areas around the airport compat24 ible with aircraft operations if the land use plan or project

25 meets the requirements of this section.
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1 ‘‘(b) CONDITIONS.—A land use plan or project meets

2 the requirements of this section if it—

3 ‘‘(1) is sponsored by the public agency that has

4 the authority to plan and adopt land use control

5 measures, including zoning, in the planning area in

6 and around the airport and that agency provides

7 written assurances to the Secretary that it will work

8 with the affected airport to identify and adopt such

9 measures;

10 ‘‘(2) does not duplicate, and is not inconsistent

11 with, an airport noise compatibility program pre12 pared by an airport owner or operator under chapter

13 475 or with other planning carried out by the air14 port;

15 ‘‘(3) is subject to an agreement between the pub16 lic agency sponsor and the airport owner or operator

17 that the development of the land use compatibility

18 plan will be done cooperatively;

19 ‘‘(4) is consistent with the airport operation and

20 planning, including the use of any noise exposure

21 contours on which the land use compatibility plan22 ning or project is based; and

23 ‘‘(5) has been approved jointly by the airport

24 owner or operator and the public agency sponsor.
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1 ‘‘(c) ASSURANCES FROM SPONSORS.—The Secretary

2 may require the airport sponsor, public agency, or other

3 entity to which a grant may be awarded under this section

4 to provide such additional assurances, progress reports, and

5 other information as the Secretary determines to be nec6 essary to carry out this section.

7 ‘‘§ 47705. Air traffic procedures at national capacity

8 projects

9 ‘‘(a) IN GENERAL.—The Secretary of Transportation

10 may consider prescribing flight procedures to avoid or min11 imize potentially significant adverse noise impacts of the

12 project during the environmental planning process for a na13 tional capacity project that involves the construction of new

14 runways or the reconfiguration of existing runways. If the

15 Secretary determines that noise mitigation flight procedures

16 are consistent with safe and efficient use of the navigable

17 airspace, then, at the request of the airport sponsor, the Ad18 ministrator may, in a manner consistent with applicable

19 Federal law, commit to prescribing such procedures in any

20 record of decision approving the project.

21 ‘‘(b) MODIFICATION.—Notwithstanding any commit22 ment by the Secretary under subsection (a), the Secretary

23 may initiate changes to such procedures if necessary to

24 maintain safety and efficiency in light of new information

25 or changed circumstances.
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1 ‘‘§ 47706. Pilot program for environmental review at

2 national capacity projects

3 ‘‘(a) IN GENERAL.—The Secretary of Transportation

4 shall initiate a 5-year pilot program funded by airport

5 sponsors—

6 ‘‘(1) to hire additional fulltime-equivalent envi7 ronmental specialists and attorneys, or

8 ‘‘(2) to obtain the services of such specialists and

9 attorneys from outside the United States Government,

10 to assist in the provision of an appropriate nation11 wide level of staffing for planning and environmental

12 review of runway development projects for national

13 capacity projects at the Federal Aviation Administra14 tion.

15 ‘‘(b) ELIGIBLE PARTICIPANTS.—Participation in the

16 pilot program shall be available, on a voluntary basis, to

17 airports with an annual passenger enplanement of not less

18 than 3 million passengers. The Secretary shall specify the

19 minimum contribution necessary to qualify for participa20 tion in the pilot program, which shall be not less than the

21 amount necessary to compensate the Department of Trans22 portation for the expense of a fulltime equivalent environ23 mental specialist and attorney qualified at the GS-14

24 equivalent level.

25 ‘‘(c) RETENTION OF REVENUES.—The salaries and ex26 penses account of the Federal Aviation Administration shall
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1 retain as an offsetting collection such sums as may be nec2 essary from such proceeds for the costs of developing and

3 implementing the program required by subsection (a). Such

4 offsetting collections shall be available for obligation subject

5 to the terms and conditions of the receiving appropriations

6 account, and shall be deposited in such accounts on a quar7 terly basis. Such offsetting collections are authorized to re8 main available until expended for such purpose.

9 ‘‘§ 47707. Definitions

10 ‘‘In this chapter:

11 ‘‘(1) NATIONAL CAPACITY PROJECT.—The term

12 ‘national capacity project’ means a project designated

13 by the Secretary under section 44702.

14 ‘‘(2) OTHER TERMS.—The definitions in section

15 47102 apply to any terms used in this chapter that

16 are defined in that section.’’.

17 (b) ADDITIONAL STAFF AUTHORIZED.—The Secretary

18 of Transportation is authorized to hire additional environ19 mental specialists and attorneys needed to process environ20 mental impact statements in connection with airport con21 struction projects and to serve as project coordinators and

22 environmental impact team members under section 47703

23 of title 49, United States Code.
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1 (c) CLERICAL AMENDMENT.—The analysis for subtitle

2 VII is amended by inserting after the item relating to sec3 tion 475 the following:

‘‘477. National capacity projects ..................................................................... 47701’’.

4 SEC. 202. CATEGORICAL EXCLUSIONS.

5 Not later than 30 days after the date of enactment of

6 this Act, the Secretary of Transportation shall report to the

7 Senate Committee on Commerce, Science, and Transpor8 tation on the categorical exclusions currently recognized

9 and provide a list of proposed additional categorical exclu10 sions from the requirement that an environmental assess11 ment or an environmental impact statement be prepared

12 under the National Environmental Policy Act of 1969 (42

13 U.S.C. 4321 et seq.) for projects at airports. In determining

14 the list of additional proposed categorical exclusions, the

15 Secretary shall include such other projects as the Secretary

16 determines should be categorically excluded in order to en17 sure that Department of Transportation environmental

18 staff resources are not diverted to lower priority tasks and

19 are available to expedite the environmental reviews of air20 port capacity enhancement projects at congested airports.

21 SEC. 203. ALTERNATIVES ANALYSIS.

22 (a) NOTICE REQUIREMENT.—Not later than 30 days

23 after the date on which the Secretary of Transportation

24 identifies an airport capacity enhancement project at a

25 congested airport under section 47171(c) of title 49, United
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1 States Code, the Secretary shall publish a notice in the Fed2 eral Register requesting comments on whether reasonable al3 ternatives exist to the project.

4 (b) CERTAIN REASONABLE ALTERNATIVES DE5 FINED.—For purposes of this section, an alternative shall

6 be considered reasonable if—

7 (1) the alternative does not create an unreason8 able burden on interstate commerce, the national

9 aviation system, or the navigable airspace;

10 (2) the alternative is not inconsistent with main11 taining the safe and efficient use of the navigable air12 space;

13 (3) the alternative does not conflict with a law

14 or regulation of the United States;

15 (4) the alternative would result in at least the

16 same reduction in congestion at the airport or in the

17 national aviation system as the proposed project; and

18 (5) in any case in which the alternative is a pro19 posed construction project at an airport other than a

20 congested airport, firm commitments to provide such

21 alternate airport capacity exists, and the Secretary

22 determines that such alternate airport capacity will

23 be available no later than 4 years after the date of the

24 Secretary’s determination under this section.
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1 (c) COMMENT PERIOD.—The Secretary shall provide

2 a period of 60 days for comments on a project identified

3 by the Secretary under this section after the date of publica4 tion of notice with respect to the project.

5 (d) DETERMINATION OF EXISTENCE OF REASONABLE

6 ALTERNATIVES.—Not later than 90 days after the last day

7 of a comment period established under subsection (c) for

8 a project, the Secretary shall determine whether reasonable

9 alternatives exist to the project. The determination shall be

10 binding on all persons, including Federal and State agen11 cies, acting under or applying Federal laws when consid12 ering the availability of alternatives to the project.

13 (e) LIMITATION ON APPLICABILITY.—This section does

14 not apply to—

15 (1) any alternatives analysis required under the

16 National Environmental Policy Act of 1969 (42

17 U.S.C. 4321 et seq.); or

18 (2) a project at an airport if the airport sponsor

19 requests, in writing, to the Secretary that this section

20 not apply to the project.

21 SEC. 204. INCREASE IN APPORTIONMENT FOR, AND FLEXI22 BILITY OF, NOISE COMPATIBILITY PLANNING

23 PROGRAMS.

24 Section 47117(e)(1)(A) is amended—
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1 (1) by striking the first sentence and inserting:

2 ‘‘At least 35 percent for grants for airport noise com3 patibility planning under section 47505(a)(2) for a

4 national capacity project, for carrying out noise com5 patibility programs under section 47504(c) of this

6 title, and for noise mitigation projects approved in an

7 environmental record of decision for an airport devel8 opment project designated as a national capacity

9 project under section 47702.’’; and

10 (2) by striking ‘‘or not such 34 percent require11 ment’’ in the second sentence and inserting ‘‘the fund12 ing level required by the preceding sentence’’.

13 SEC. 205. SECRETARY OF TRANSPORTATION TO IDENTIFY

14 AIRPORT CONGESTION-RELIEF PROJECTS.

15 (a) IN GENERAL.—Within 90 days after the date of

16 enactment of this Act, the Secretary of Transportation shall

17 provide to the Senate Committee on Commerce, Science,

18 and Transportation, and to the House of Representatives

19 Committee on Transportation and Infrastructure—

20 (1) a list of planned air traffic and airport-ca21 pacity projects at congested airport capacity bench22 mark airports the completion of which will substan23 tially relieve congestion at those airports; and
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1 (2) a list of options for expanding capacity at

2 the 8 airports on the list at which the most severe

3 delays are occurring.

4 (b) 2-YEAR UPDATE.—The Secretary shall provide up5 dated lists under subsection (a) to the Committees 2 years

6 after the date of enactment of this Act.

7 (c) DELISTING OF PROJECTS.—The Secretary shall re8 move a project from the list provided to the Committees

9 under this section upon the request, in writing, of an air10 port operator if the operator states in the request that con11 struction of the project will not be completed within 10

12 years from the date of the request.

13 SEC. 206. DESIGN-BUILD CONTRACTING.

14 (a) IN GENERAL.—Subchapter I of chapter 471 is

15 amended by adding at the end the following:

16 ‘‘§ 47138. Design-build contracting

17 ‘‘(a) IN GENERAL.—The Administrator may approve

18 an application of an airport sponsor under this section to

19 authorize the airport sponsor to award a design-build con20 tract using a selection process permitted under applicable

21 State or local law if—

22 ‘‘(1) the Administrator approves the application

23 using criteria established by the Administrator;

24 ‘‘(2) the design-build contract is in a form that

25 is approved by the Administrator;
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1 ‘‘(3) the Administrator is satisfied that the con2 tract will be executed pursuant to competitive proce3 dures and contains a schematic design adequate for

4 the Administrator to approve the grant;

5 ‘‘(4) use of a design-build contract will be cost ef6 fective and expedite the project;

7 ‘‘(5) the Administrator is satisfied that there will

8 be no conflict of interest; and

9 ‘‘(6) the Administrator is satisfied that the selec10 tion process will be as open, fair, and objective as the

11 competitive bid system and that at least three or more

12 bids will be submitted for each project under the selec13 tion process.

14 ‘‘(b) REIMBURSEMENT OF COSTS.—The Administrator

15 may reimburse an airport sponsor for design and construc16 tion costs incurred before a grant is made pursuant to this

17 section if the project is approved by the Administrator in

18 advance and is carried out in accordance with all adminis19 trative and statutory requirements that would have been

20 applicable under this chapter 471, if the project were car21 ried out after a grant agreement had been executed.

22 ‘‘(c) DESIGN-BUILD CONTRACT DEFINED.—In this sec23 tion, the term ‘design-build contract’ means an agreement

24 that provides for both design and construction of a project

25 by a contractor.’’.
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1 (b) CONFORMING AMENDMENT.—The chapter analysis

2 for chapter 471 is amended by inserting after the item relat3 ing to section 47137 the following:

‘‘47138. Design-build contracting.’’.

4 SEC. 207. SPECIAL RULE FOR AIRPORT IN ILLINOIS.

5 (a) IN GENERAL.—Nothing in this title shall be con6 strued to preclude the application of any provision of this

7 Act to the State of Illinois or any other sponsor of a new

8 airport proposed to be constructed in the State of Illinois.

9 (b) AUTHORITY OF THE GOVERNOR.—Nothing in this

10 title shall be construed to preempt the authority of the Gov11 ernor of the State of Illinois as of August 1, 2001, to ap12 prove or disapprove airport development projects.

13 SEC. 208. ELIMINATION OF DUPLICATIVE REQUIREMENTS.

14 (a) IN GENERAL.—Section 47106(c)(1) is amended—

15 (1) by inserting ‘‘and’’ after ‘‘project;’’ in sub16 paragraph (A)(ii);

17 (2) by striking subparagraph (B); and

18 (3) by redesignating subparagraph (C) as sub19 paragraph (B).

20 (b) CONFORMING AMENDMENTS.—Section 47106(c) of

21 such title is amended—

22 (1) by striking paragraph (4);

23 (2) by redesignating paragraph (5) as para24 graph (4); and
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1 (3) by striking ‘‘(1)(C)’’ in paragraph (4), as re2 designated, and inserting ‘‘(1)(B)’’.

3 SEC. 209. STREAMLINING THE PASSENGER FACILITY FEE

4 PROGRAM.

5 Section 40117 is amended—

6 (1) by striking from ‘‘finds—’’ in paragraph (4)

7 of subsection (b) through the end of that paragraph

8 and inserting ‘‘finds that the project cannot be paid

9 for from funds reasonably expected to be available for

10 the programs referred to in section 48103.’’;

11 (2) by adding at the end of subsection (c)(2) the

12 following:

13 ‘‘(E) The agency will include in its applica14 tion or notice submitted under subsection (1)

15 copies of all certifications of agreement or dis16 agreement received under subparagraph (D).

17 ‘‘(F) For the purpose of this section, an eli18 gible agency providing notice and consultation to

19 an air carrier and foreign air carrier is deemed

20 to have satisfied this requirement if it limits

21 such notices and consultations to air carriers

22 and foreign air carriers that have a significant

23 business interest on the airport. In developing

24 regulations to implement this provision, the Sec25 retary shall consider a significant business inter-
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1 est to be defined as an air carrier or foreign air

2 carrier that has no less than 1.0 percent of

3 boardings at the airport in the prior calendar

4 year, except that no air carrier or foreign air

5 carrier may be considered excluded under this

6 section if it has at least 25,000 boardings at the

7 airport in the prior calendar year, or if it oper8 ates scheduled service, without regard to such

9 percentage requirements.’’;

10 (3) by redesignating paragraph (3) of subsection

11 (c) as paragraph (4) and inserting after paragraph

12 (2) the following:

13 ‘‘(3) Before submitting an application, the eligi14 ble agency must provide reasonable notice and an op15 portunity for public comment. The Secretary shall

16 prescribe regulations that define reasonable notice and

17 provide for at least—

18 ‘‘(A) a requirement that the eligible agency

19 provide public notice of intent to collect a pas20 senger facility fee so as to inform those interested

21 persons and agencies who may be affected,

22 including—

23 ‘‘(i) publication in local newspapers of

24 general circulation;
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1 ‘‘(ii) publication in other local media;

2 and

3 ‘‘(iii) posting the notice on the agen4 cy’s website;

5 ‘‘(B) a requirement for submission of public

6 comments no sooner than 30 days after pub7 lishing of the notice and not later than 45 days

8 after publication; and

9 ‘‘(C) a requirement that the agency include

10 in its application or notice submitted under

11 paragraph (1) copies of all comments received

12 under subparagraph (B).’’;

13 (4) by striking ‘‘shall’’ in the first sentence of

14 paragraph (4), as redesignated, of subsection (c) and

15 inserting ‘‘may’’; and

16 (5) by adding at the end the following:

17 ‘‘(l) PILOT PROGRAM FOR PASSENGER FACILITY FEE

18 AUTHORIZATIONS AT SMALL AIRPORTS.—

19 ‘‘(1) There is established a pilot program for the

20 Secretary to test alternative procedures for author21 izing small airports to impose passenger facility fees.

22 An eligible agency may impose a passenger facility

23 fee at a nonhub airport (as defined in section

24 41762(11) of this title) that it controls for use on eli25 gible airport-related projects at that airport, in ac-
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1 cordance with the provisions of this subsection. These

2 procedures shall be in lieu of the procedures otherwise

3 specified in this section.

4 ‘‘(2) The eligible agency must provide reasonable

5 notice and an opportunity for consultation to air car6 riers and foreign air carriers in accordance with sub7 section (c)(2), and must provide reasonable notice and

8 opportunity for public comment in accordance with

9 subsection (c)(3).

10 ‘‘(3) The eligible agency must submit to the Sec11 retary a notice of intention to impose a passenger fa12 cility fee, which notice shall include—

13 ‘‘(A) information that the Secretary may

14 require by regulation on each project for which

15 authority to impose a passenger facility charge

16 is sought;

17 ‘‘(B) the amount of revenue from passenger

18 facility charges that is proposed to be collected

19 for each project; and

20 ‘‘(C) the level of the passenger facility

21 charge that is proposed.

22 ‘‘(4) The Secretary shall acknowledge receipt of

23 the notice and indicate any objection to the imposi24 tion of a passenger facility fee for any project identi-
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1 fied in the notice within 30 days after receipt of the

2 eligible agency’s notice.

3 ‘‘(5) Unless the Secretary objects within 30 days

4 after receipt of the eligible agency’s notice, the eligible

5 agency is authorized to impose a passenger facility fee

6 in accordance with the terms of its notice.

7 ‘‘(6) Not later than 180 days after the date of en8 actment of this subsection, the Secretary shall propose

9 such regulations as may be necessary to carry out this

10 subsection.

11 ‘‘(7) The authority granted under this subsection

12 shall expire three years after the issuance of the regu13 lation required by paragraph (6).

14 ‘‘(8) An acknowledgement issued under para15 graph (4) shall not be considered an order of the Sec16 retary issued under section 46110 of this title.’’.

17 SEC. 210. QUARTERLY STATUS REPORTS.

18 Beginning with the second calendar quarter ending

19 after the date of enactment of this Act, the Secretary of

20 Transportation shall provide quarterly status reports to the

21 Senate Committee on Commerce, Science, and Transpor22 tation and the House of Representatives Committee on

23 Transportation and Infrastructure on the status of con24 struction of each major runway project undertaken at the
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1 largest 40 commercial airports in terms of annual

2 enplanements.

3 SEC. 211. NOISE DISCLOSURE.

4 (a) NOISE DISCLOSURE SYSTEM IMPLEMENTATION

5 STUDY.—The Administrator of the Federal Aviation Ad6 ministration shall conduct a study to determine the feasi7 bility of developing a program under which prospective

8 home buyers of property located in the vicinity of an air9 port could be notified of information derived from noise ex10 posure maps that may affect the use and enjoyment of the

11 property. The study shall assess the scope, administration,

12 usefulness, and burdensomeness of any such program, the

13 costs and benefits of such a program, and whether partici14 pation in such a program should be voluntary or manda15 tory.

16 (b) PUBLIC AVAILABILITY OF NOISE EXPOSURE

17 MAPS.—The Federal Aviation Administration shall make

18 copies or facsimiles of noise exposure maps available to the

19 public via the Internet on its website in an appropriate

20 format.

21 (c) NOISE EXPOSURE MAP.—In this section, the term

22 ‘‘noise exposure map’’ means a noise exposure map pre23 pared under section 47503 of title 49, United States Code.
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1 SEC. 212. PROHIBITION ON REQUIRING AIRPORTS TO PRO2 VIDE RENT-FREE SPACE FOR FAA OR TSA.

3 (a) IN GENERAL.—Chapter 401 is amended by adding

4 at the end the following:

5 ‘‘§ 40129. Prohibition on rent-free space requirements

6 for FAA or TSA

7 ‘‘(a) IN GENERAL.—Neither the Secretary of Transpor8 tation nor the Secretary of Homeland Security may require

9 airport sponsors to provide building construction, mainte10 nance, utilities and expenses, or space in airport sponsor11 owned buildings to the Federal Aviation Administration or

12 the Transportation Security Administration without cost

13 for services relating to air traffic control, air navigation,

14 aviation security, or weather reporting.

15 ‘‘(b) NEGOTIATED AGREEMENTS.—Subsection (a) does

16 not prohibit—

17 ‘‘(1) the negotiation of agreements between either

18 Secretary and an airport sponsor to provide building

19 construction, maintenance, utilities and expenses, or

20 space in airport sponsor-owned buildings to the Fed21 eral Aviation Administration or the Transportation

22 Security Administration without cost or at below23 market rates; or

24 ‘‘(2) either Secretary from requiring airport

25 sponsors to provide land without cost to the Federal

26 Aviation Administration for air traffic control facili-
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1 ties or space without cost to the Transportation Secu2 rity Administration for necessary security check3 points.’’.

4 (b) CONFORMING AMENDMENT.—The chapter analysis

5 for chapter 401 is amended by adding at the end the fol6 lowing:

‘‘40129. Prohibition on rent-free space requirements for FAA or TSA.’’.

7 SEC. 213. SPECIAL RULES FOR FISCAL YEAR 2004.

8 (a) APPORTIONMENT TO CERTAIN AIRPORTS WITH

9 DECLINING BOARDINGS.—

10 (1) IN GENERAL.—For fiscal year 2004, the Sec11 retary of Transportation may apportion funds under

12 section 47114 of title 49, United States Code, to the

13 sponsor of an airport described in paragraph (2) in

14 an amount equal to the amount apportioned to that

15 airport under that section for fiscal year 2002, not16 withstanding any provision of section 47114 to the

17 contrary.

18 (2) AIRPORTS TO WHICH PARAGRAPH (1) AP19 PLIES.—Paragraph (1) applies to any airport deter20 mined by the Secretary to have had—

21 (A) less than 0.05 percent of the total

22 United States passenger boardings (as defined in

23 section 47102(10) of title 49, United States

24 Code) for the calendar year used for determining
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1 apportionments under section 47114 for fiscal

2 year 2004;

3 (B) less than 10,000 passenger boardings in

4 calendar year 2002; and

5 (C) 10,000 or more passenger boardings in

6 calendar year 2000.

7 (b) TEMPORARY INCREASE IN GOVERNMENT SHARE OF

8 CERTAIN AIP PROJECT COSTS.—Notwithstanding section

9 47109(a) of title 49, United States Code, the Government’s

10 share of allowable project costs for a grant made in fiscal

11 year 2004 under chapter 471 of that title for a project de12 scribed in paragraph (2) or (3) of that section shall be 95

13 percent.

14 SEC. 214. AGREEMENTS FOR OPERATION OF AIRPORT FA15 CILITIES.

16 Section 47124 is amended—

17 (1) by inserting ‘‘a qualified entity or’’ after

18 ‘‘with’’ in subsection (a);

19 (2) by inserting ‘‘entity or ’’ after ‘‘allow the’’ in

20 subsection (a);

21 (3) by inserting ‘‘entity or’’ before ‘‘State’’ the

22 last place it appears in subsection (a);

23 (4) by striking ‘‘contract,’’ in subsection (b)(2)

24 and inserting ‘‘contract with a qualified entity, or’’;
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1 (5) by striking ‘‘the State’’ each place it appears

2 in subsection (b)(2) and inserting ‘‘the entity or

3 State’’;

4 (6) by striking ‘‘PILOT’’ in the caption of sub5 section (b)(3);

6 (7) by striking ‘‘pilot’’ in subsection (b)(3)(A);

7 (8) by striking ‘‘pilot’’ in subsection (b)(3)(D);

8 (9) by striking ‘‘$6,000,000 per fiscal year’’ in

9 subsection (b)(3)(E) and inserting ‘‘$6,500,000 for fis10 cal 2004, $7,000,000 for fiscal year 2005, and

11 $7,500,000 for fiscal year 2006’’; and

12 (10) by striking ‘‘$1,100,000.’’ in subsection

13 (b)(4)(C) and inserting ‘‘$1,500,000.’’.

14 SEC. 215. PUBLIC AGENCIES.

15 Section 47102(15) is amended—

16 (1) by striking ‘‘or’’ after the semicolon in sub17 paragraph (B);

18 (2) by redesignating subparagraph (C) as sub19 paragraph (D); and

20 (3) by inserting after subparagraph (B) the fol21 lowing:

22 ‘‘(C) the Department of the Interior with re23 spect to an airport owned by the Department

24 that is required to be maintained for commercial

25 aviation safety at a remote location; or’’.
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1 SEC. 216. FLEXIBLE FUNDING FOR NONPRIMARY AIRPORT

2 APPORTIONMENTS.

3 (a) IN GENERAL.—Section 47117(c)(2) is amended to

4 read as follows:

5 ‘‘(2) WAIVER.—A sponsor of an airport may

6 make an agreement with the Secretary of Transpor7 tation waiving the sponsor’s claim to any part of the

8 amount apportioned for the airport under sections

9 47114(c) and 47114(d)(2)(A) of this title if the Sec10 retary agrees to make the waived amount available

11 for a grant for another public-use airport in the same

12 State or geographical area as the airport, as deter13 mined by the Secretary.’’.

14 (b) CONFORMING AMENDMENTS.—

15 (1) Section 47108(a) is amended by inserting

16 ‘‘or section 47114(d)(2)(A)’’ after ‘‘under section

17 47114(c)’’.

18 (2) Section 47110 is amended—

19 (A) by inserting ‘‘or section

20 47114(d)(2)(A)’’ in subsection (b)(2)(C) after ‘‘of

21 section 47114(c)’’;

22 (B) by inserting ‘‘or section

23 47114(d)(2)(A)’’ in subsection (g) after ‘‘of sec24 tion 47114(c)’’;

25 (C) by striking ‘‘of project.’’ in subsection

26 (g) and inserting ‘‘of the project.’’; and
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1 (D) by adding at the end the following:

2 ‘‘(h) NONPRIMARY AIRPORTS.—The Secretary may de3 cide that the costs of revenue producing aeronautical sup4 port facilities, including fuel farms and hangars, are allow5 able for an airport development project at a nonprimary

6 airport and for which the Government’s share is paid only

7 with funds apportioned to a sponsor under section

8 47114(d)(3)(A), if the Secretary determines that the sponsor

9 has made adequate provision for financing airside needs of

10 the airport.’’.

11 (3) Section 47119(b) is amended by—

12 (A) striking ‘‘or’’ after the semicolon in

13 paragraph (3);

14 (B) striking ‘‘1970.’’ in paragraph (4) and

15 inserting ‘‘1970; or’’; and

16 (C) adding at the end the following:

17 ‘‘(5) to a sponsor of a nonprimary airport re18 ferred to in subparagraph (A) or (B) paragraph (2),

19 any part of amounts apportioned to the sponsor for

20 the fiscal year under section 47114(d)(3)(A) of this

21 title for project costs allowable under section 47110(d)

22 of this title.’’.

23 (c) APPORTIONMENT FOR ALL-CARGO AIRPORTS.—

24 Section 47114(c)(2)(A) is amended by striking ‘‘3’’ and in25 serting ‘‘3.5’’.
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1 (d) CONSIDERATIONS FOR CARGO OPERATIONS.—Sec2 tion 47115(d) is amended—

3 (1) by striking ‘‘and’’ at the end of paragraph

4 (5);

5 (2) by striking the period at the end of para6 graph (6) and inserting ‘‘; and’’; and

7 (3) by adding at the end the following new para8 graph:

9 ‘‘(7) the ability of the project to foster United

10 States competitiveness in securing global air cargo ac11 tivity at a United States airport.’’.

12 (e) TERMINAL DEVELOPMENT COSTS.—Section

13 47119(a)(1)(C) is amended by striking ‘‘3 years’’ and in14 serting ‘‘1 year’’.

15 SEC. 217. SHARE OF AIRPORT PROJECT COSTS.

16 (a) IN GENERAL.—Section 47109 of title 49, United

17 States Code, is amended by redesignating subsection (c) as

18 subsection (d) and inserting after subsection (b) the fol19 lowing:

20 ‘‘(c) GRANDFATHER RULE.—

21 ‘‘(1) IN GENERAL.—In the case of any project

22 approved after September 30, 2001, at an airport

23 that has less than .25 percent of the total number of

24 passenger boardings at all commercial service air25 ports, and that is located in a State containing unap-
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1 propriated and unreserved public lands and non2 taxable Indian lands (individual and tribal) of more

3 than 5 percent of the total area of all lands in the

4 State, the Government’s share of allowable costs of the

5 project shall be increased by the same ratio as the

6 basic share of allowable costs of a project divided into

7 the increased (Public Lands States) share of allowable

8 costs of a project as shown on documents of the Fed9 eral Aviation Administration dated August 3, 1979,

10 at airports for which the general share was 80 percent

11 on August 3, 1979. This subsection shall apply only

12 if—

13 ‘‘(A) the State contained unappropriated

14 and unreserved public lands and nontaxable In15 dian lands of more than 5 percent of the total

16 area of all lands in the State on August 3, 1979;

17 and

18 ‘‘(B) the application under subsection (b),

19 does not increase the Government’s share of al20 lowable costs of the project

21 ‘‘(2) LIMITATION.—The Government’s share of

22 allowable project costs determined under this sub23 section shall not exceed the lesser of 93.75 percent or

24 the highest percentage Government share applicable to

25 any project in any State under subsection (b).’’.
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1 (b) CONFORMING AMENDMENT.—Subsection (a) of Sec2 tion 47109, title 49, United States Code, is amended by

3 striking ‘‘Except as provided in subsection (b)’’, and insert4 ing in lieu thereof ‘‘Except as provided in subsection (b)

5 or subsection (c)’’.

6 SEC. 218. PILOT PROGRAM FOR PURCHASE OF AIRPORT DE7 VELOPMENT RIGHTS.

8 (a) IN GENERAL.—Chapter 471 is amended by adding

9 at the end the following:

10 ‘‘§ 47141. Pilot program for purchase of airport devel11 opment rights

12 ‘‘(a) IN GENERAL.—The Secretary of Transportation

13 shall establish a pilot program to support the purchase, by

14 a State or political subdivision of a State, of development

15 rights associated with, or directly affecting the use of, pri16 vately owned public use airports located in that State.

17 Under the program, the Secretary may make a grant to

18 a State or political subdivision of a State from funds ap19 portioned under section 47114 for the purchase of such

20 rights.

21 ‘‘(b) GRANT REQUIREMENTS.—

22 ‘‘(1) IN GENERAL.—The Secretary may not make

23 a grant under subsection (a) unless the grant is

24 made—
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1 ‘‘(A) to enable the State or political subdivi2 sion to purchase development rights in order to

3 ensure that the airport property will continue to

4 be available for use as a public airport; and

5 ‘‘(B) subject to a requirement that the State

6 or political subdivision acquire an easement or

7 other appropriate covenant requiring that the

8 airport shall remain a public use airport in per9 petuity.

10 ‘‘(2) MATCHING REQUIREMENT.—The amount of

11 a grant under the program may not exceed 90 percent

12 of the costs of acquiring the development rights.

13 ‘‘(c) GRANT STANDARDS.—The Secretary shall pre14 scribe standards for grants under subsection (a),

15 including—

16 ‘‘(1) grant application and approval procedures;

17 and

18 ‘‘(2) requirements for the content of the instru19 ment recording the purchase of the development

20 rights.

21 ‘‘(d) RELEASE OF PURCHASED RIGHTS AND COV22 ENANT.—Any development rights purchased under the pro23 gram shall remain the property of the State or political

24 subdivision unless the Secretary approves the transfer or

25 disposal of the development rights after making a deter-
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1 mination that the transfer or disposal of that right is in

2 the public interest.

3 ‘‘(e) LIMITATION.—The Secretary may not make a

4 grant under the pilot program for the purchase of develop5 ment rights at more than 10 airports’’.

6 (b) CONFORMING AMENDMENT.—The chapter analysis

7 for chapter 471 is amended by inserting after the item relat8 ing to section 47140 the following:

‘‘47141. Pilot program for purchase of airport development rights’’.

9 SEC. 219. GARY/CHICAGO AIRPORT FUNDING.

10 The Administrator of the Federal Aviation Adminis11 tration shall, for purposes of chapter 471 of title 49, United

12 States Code, give priority consideration to a letter of intent

13 application for funding submitted by the City of Gary, In14 diana, or the State of Indiana, for the extension of the main

15 runway at the Gary/Chicago Airport. The letter of intent

16 application shall be considered upon completion of the envi17 ronmental impact statement and benefit cost analysis in

18 accordance with Federal Aviation Administration require19 ments. The Administrator shall consider the letter of intent

20 application not later than 90 days after receiving it from

21 the applicant.

22 SEC. 220. CIVIL PENALTY FOR CLOSURE OF AN AIRPORT

23 WITHOUT PROVIDING SUFFICIENT NOTICE.

24 (a) IN GENERAL.—Chapter 463 is amended by adding

25 at the end the following:
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1 ‘‘SEC. 46319. CLOSURE OF AN AIRPORT WITHOUT PRO2 VIDING SUFFICIENT NOTICE.

3 ‘‘(a) PROHIBITION.—A public agency (as defined in

4 section 47102) may not close an airport listed in the na5 tional plan of integrated airport systems under section

6 47103 without providing written notice to the Adminis7 trator of the Federal Aviation Administration at least 30

8 days before the date of the closure.

9 ‘‘(b) PUBLICATION OF NOTICE.—The Administrator

10 shall publish each notice received under subsection (a) in

11 the Federal Register.

12 ‘‘(c) CIVIL PENALTY.—A public agency violating sub13 section (a) shall be liable for a civil penalty of $10,000 for

14 each day that the airport remains closed without having

15 given the notice required by this section.’’.

16 (b) CONFORMING AMENDMENT.—The analysis for

17 chapter 463 is amended by adding at the end the following:

‘‘46319. Closure of an airport without providing sufficient note.’’.

18 SEC. 221. ANCHORAGE AIR TRAFFIC CONTROL.

19 (a) IN GENERAL.—Not later than September 30, 2004,

20 the Administrator of the Federal Aviation Administration

21 shall complete a study and transmit a report to the appro22 priate committees regarding the feasibility of consolidating

23 the Anchorage Terminal Radar Approach Control and the

24 Anchorage Air Route Traffic Control Center at the existing

25 Anchorage Air Route Traffic Control Center facility.
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1 (b) APPROPRIATE COMMITTEES.—In this section, the

2 term ‘‘appropriate committees’’ means the Committee on

3 Commerce, Science, and Transportation of the Senate and

4 the Committee on Transportation and Infrastructure of the

5 House of Representatives.

6 TITLE III—AIRLINE SERVICE

7 DEVELOPMENT

8 Subtitle A—Program Enhancements

9 SEC. 301. DELAY REDUCTION MEETINGS.

10 (a) IN GENERAL.—Subchapter I of chapter 417 is

11 amended by adding at the end the following new section:

12 ‘‘§ 41723. Delay reduction actions

13 ‘‘(a) DELAY REDUCTION MEETINGS.—

14 ‘‘(1) SCHEDULING REDUCTION MEETINGS.—The

15 Secretary of Transportation may request that air car16 riers meet with the Administrator of the Federal

17 Aviation Administration to discuss flight reductions

18 at severely congested airports to reduce overscheduling

19 and flight delays during hours of peak operation if—

20 ‘‘(A) the Administrator of the Federal Avia21 tion Administration determines that it is nec22 essary to convene such a meeting; and

23 ‘‘(B) the Secretary determines that the

24 meeting is necessary to meet a serious transpor-
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1 tation need or achieve an important public ben2 efit.

3 ‘‘(2) MEETING CONDITIONS.—Any meeting under

4 paragraph (1)—

5 ‘‘(A) shall be chaired by the Administrator;

6 ‘‘(B) shall be open to all scheduled air car7 riers; and

8 ‘‘(C) shall be limited to discussions involv9 ing the airports and time periods described in

10 the Administrator’s determination.

11 ‘‘(3) FLIGHT REDUCTION TARGETS.—Before any

12 such meeting is held, the Administrator shall establish

13 flight reduction targets for the meeting and notify the

14 attending air carriers of those targets not less than 48

15 hours before the meeting.

16 ‘‘(4) DELAY REDUCTION OFFERS.—An air car17 rier attending the meeting shall make any delay re18 duction offer to the Administrator rather than to an19 other carrier.

20 ‘‘(5) TRANSCRIPT.—The Administrator shall en21 sure that a transcript of the meeting is kept and

22 made available to the public not later than 3 business

23 days after the conclusion of the meeting.

24 ‘‘(b) STORMY WEATHER AGREEMENTS LIMITED EX25 EMPTION.—
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1 ‘‘(1) IN GENERAL.—The Secretary may establish

2 a program to authorize by order discussions and

3 agreements between 2 or more air carriers for the

4 purpose of reducing flight delays during periods of in5 clement weather.

6 ‘‘(2) REQUIREMENTS.—An authorization issued

7 under paragraph (1)—

8 ‘‘(A) may only be issued by the Secretary

9 after a determination by the Federal Aviation

10 Administration that inclement weather is likely

11 to adversely and directly affect capacity at an

12 airport for a period of at least 3 hours;

13 ‘‘(B) shall apply only to discussions and

14 agreements concerning flights directly affected by

15 the inclement weather; and

16 ‘‘(C) shall remain in effect for a period of

17 24 hours.

18 ‘‘(3) PROCEDURE.—The Secretary shall establish

19 procedures within 30 days after such date of enact20 ment for—

21 ‘‘(A) filing requests for an authorization

22 under paragraph (1);

23 ‘‘(B) participation under paragraph (5) by

24 representatives of the Department of Transpor-
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1 tation in any meetings or discussions held pur2 suant to such an order; and

3 ‘‘(C) the determination by the Federal Avia4 tion Administration about the impact of inclem5 ent weather.

6 ‘‘(4) COPY OF PARTICIPATION REQUEST FILED

7 WITH SECRETARY.—Before an air carrier may request

8 an order under paragraph (1), it shall file a request

9 with the Secretary, in such form and manner as the

10 Secretary may prescribe, to participate in the pro11 gram established under paragraph (1).

12 ‘‘(5) DOT PARTICIPATION.—The Secretary shall

13 ensure that the Department is represented at any

14 meetings authorized under this subsection.

15 ‘‘(c) EXEMPTION AUTHORIZED.—When the Secretary

16 finds that it is required by the public interest, the Secretary,

17 as part of an order issued under subsection (b)(1), shall

18 exempt a person affected by the order from the antitrust

19 laws to the extent necessary to allow the person to proceed

20 with the activities approved in the order.

21 ‘‘(d) ANTITRUST LAWS DEFINED.—In this section, the

22 term ‘antitrust laws’ has the meaning given that term in

23 the first section of the Clayton Act (15 U.S.C. 12).

24 ‘‘(e) SUNSET.—The authority of the Secretary to issue

25 an order under subsection (b)(1) of this section expires at
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1 the end of the 2-year period that begins 45 days after the

2 date of enactment of the Aviation Investment and Revital3 ization Vision Act. The Secretary may extend the 2-year

4 Period for an additional 2 years if the Secretary determines

5 that such an extension is necessary and in the public inter6 est. The Secretary shall notify the Senate Committee on

7 Commerce, Science, and Transportation, and to the House

8 of Representatives Committee on Transportation and Infra9 structure of any such extension.’’.

10 (b) CONFORMING AMENDMENT.—The chapter analysis

11 for chapter 417 is amended by inserting after the item relat12 ing to section 41722 the following new item:

‘‘41723. Delay reduction actions.’’.

13 SEC. 302. SMALL COMMUNITY AIR SERVICE DEVELOPMENT

14 PILOT PROGRAM.

15 (a) 3-YEAR EXTENSION.—Section 41743(e)(2) is

16 amended—

17 (1) by striking ‘‘There is’’ and inserting ‘‘There

18 are’’;

19 (2) by striking ‘‘2001 and’’ and inserting

20 ‘‘2001,’’;

21 (3) by striking ‘‘2003’’ and inserting ‘‘2003, and

22 $27,500,000 for each of fiscal years 2004, 2005, and

23 2006’’; and

24 (4) by striking ‘‘section.’’ and inserting ‘‘section,

25 not more than $275,000 per year of which may be
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1 used for administrative costs in fiscal years 2004

2 through 2006.’’.

3 (b) ADDITIONAL COMMUNITIES.—Section 41743(c)(4)

4 of such title is amended by striking ‘‘program.’’ and insert5 ing ‘‘program each year. No community, consortia of com6 munities, nor combination thereof may participate in the

7 program in support of the same project more than once,

8 but any community, consortia of communities, or combina9 tion thereof may apply, subsequent to such participation,

10 to participate in the program in support of a different

11 project.

12 SEC. 303. DOT STUDY OF COMPETITION AND ACCESS PROB13 LEMS AT LARGE AND MEDIUM HUB AIRPORTS.

14 (a) IN GENERAL.—The Secretary of Transportation

15 shall study competition and airline access problems at hub

16 airports (as defined in section 41731(a)(3)) of title 49,

17 United States Code, and medium hub airports (as defined

18 in section 41714(h)(9) of that title). In the study, the Sec19 retary shall examine, among other matters—

20 (1) gate usage and availability; and

21 (2) the effects of the pricing of gates and other

22 facilities on competition and access.

23 (b) REPORT.—The Secretary shall transmit a report

24 of the Secretary’s findings and conclusions together with

25 any recommendations, including legislative recommenda-
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1 tions, the Secretary may have for improving competition

2 and airline access at such airports to the Senate Committee

3 on Commerce, Science, and Transportation and the House

4 of Representatives Committee on Transportation and Infra5 structure within 6 months after the date of enactment of

6 this Act.

7 SEC. 304. COMPETITION DISCLOSURE REQUIREMENT FOR

8 LARGE AND MEDIUM HUB AIRPORTS.

9 Section 47107 is amended by adding at the end the

10 following:

11 ‘‘(q) COMPETITION DISCLOSURE REQUIREMENT.—

12 ‘‘(1) IN GENERAL.—The Secretary of Transpor13 tation may approve an application under this sub14 chapter for an airport development project grant for

15 a hub airport or a medium hub airport only if the

16 Secretary receives assurances that the airport sponsor

17 will provide the information required by paragraph

18 (2) at such time and in such form as the Secretary

19 may require.

20 ‘‘(2) COMPETITIVE ACCESS.—If an airport denies

21 an application by an air carrier to receive access to

22 gates or other facilities at that airport in order to

23 provide service to the airport or to expand service at

24 the airport, then, within 30 days after denying the re25 quest, the airport sponsor shall—
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1 ‘‘(A) notify the Secretary of the denial; and

2 ‘‘(B) transmit a report to the Secretary

3 that—

4 ‘‘(i) describes the request;

5 ‘‘(ii) explains the reasons for the de6 nial; and

7 ‘‘(iii) provides a time frame within

8 which, if any, the airport will be able to ac9 commodate the request.

10 ‘‘(3) DEFINITIONS.—In this subsection:

11 ‘‘(A) HUB AIRPORT.—The term ‘hub air12 port’ has the meaning given that term by section

13 41731(a)(3).

14 ‘‘(B) MEDIUM HUB AIRPORT.—The term

15 ‘medium hub airport’ has the meaning given

16 that term by section 41714(h)(9).’’.

17 SEC. 305. LOCATION OF SHUTTLE SERVICE AT RONALD

18 REAGAN WASHINGTON NATIONAL AIRPORT.

19 The Airports Authority (as defined in section 49103(1)

20 of title 49, United States Code) shall, in conjunction with

21 the Department of Transportation, conduct a study on the

22 feasibility of housing the gates used by all air carriers pro23 viding shuttle service from Ronald Reagan Washington Na24 tional Airport in the same terminal.
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1 SEC. 306. AIR CARRIERS REQUIRED TO HONOR TICKETS

2 FOR SUSPENDED SERVICE.

3 (a) IN GENERAL.—Section 145(a) of the Aviation and

4 Transportation Security Act of 2001 (49 U.S.C. 40101

5 note) is amended by adding at the end the following: ‘‘The

6 Secretary of Transportation shall give favorable consider7 ation to waiving the terms and conditions established by

8 this section, including those set forth in the guidance pro9 vided by the Department in notices, dated August 8, 2002,

10 November 14, 2002, and January 23, 2003, in cases where

11 remaining carriers operate additional flights to accommo12 date passengers whose service was suspended, interrupted,

13 or discontinued under circumstances described in the pre14 ceding sentence over routes located in isolated areas that

15 are unusually dependent on air transportation.’’.

16 (b) EXTENSION.—Section 145(c) of such Act (49

17 U.S.C. 40101 note) is amended by striking ‘‘more than’’

18 and all that follows through ‘‘after’’ and inserting ‘‘more

19 than 36 months after’’.

20 Subtitle B—Small Community and

21 Rural Air Service Revitalization

22 SEC. 351. REAUTHORIZATION OF ESSENTIAL AIR SERVICE

23 PROGRAM.

24 Section 41742(a) of title 49, United States Code, is

25 amended to read as follows:
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1 ‘‘(a) IN GENERAL.—There are authorized to be appro2 priated to the Secretary of Transportation to carry out the

3 essential air service under this subchapter, $113,000,000 for

4 each of fiscal years 2004 through 2007, $50,000,000 of

5 which for each such year shall be derived from amounts re6 ceived by the Federal Aviation Administration credited to

7 the account established under section 45303 of this title or

8 otherwise provided to the Administration.’’.

9 SEC. 352. INCENTIVE PROGRAM.

10 (a) IN GENERAL.—Chapter 417 of title 49, United

11 States Code, is amended by adding at the end the following:

12 ‘‘SUBCHAPTER IV—MARKETING INCENTIVE

13 PROGRAM

‘‘Sec. 41781. Purpose.

‘‘Sec. 41782. Marketing program.

‘‘Sec. 41783. State marketing assistance.

‘‘Sec. 41784. Definitions.

‘‘Sec. 41785. Authorization of appropriations.

14 ‘‘§ 41781. Purposes

15 ‘‘The purposes of this subchapter are—

16 ‘‘(1) to enable essential air service communities

17 to increase boardings and the level of passenger usage

18 of airport facilities at an eligible place by providing

19 technical, financial, and other marketing assistance to

20 such communities and to States;
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1 ‘‘(2) to reduce subsidy costs under subchapter II

2 of this chapter as a consequence of such increased

3 usage; and

4 ‘‘(3) to provide such communities with opportu5 nities to obtain, retain, and improve transportation

6 services.

7 ‘‘§ 41782. Marketing program

8 ‘‘(a) IN GENERAL.—The Secretary of Transportation

9 shall establish a marketing incentive program for commu10 nities that receive subsidized service by an air carrier under

11 section 41733 under which the airport sponsor in such a

12 community may receive a grant of not more than $50,000

13 to develop and implement a marketing plan to increase pas14 senger boardings and the level of passenger usage of its air15 port facilities.

16 ‘‘(b) MATCHING REQUIREMENT; SUCCESS BONUSES—

17 ‘‘(1) IN GENERAL.—Except as provided in para18 graphs (2) and (3), not less than 25 percent of the

19 publicly financed costs associated with the marketing

20 plan shall come from non-Federal sources. For pur21 poses of this paragraph—

22 ‘‘(A) the non-Federal portion of the publicly

23 financed costs may be derived from contributions

24 in kind; and
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1 ‘‘(B) State or local matching contributions

2 may not be derived, directly or indirectly, from

3 Federal funds, but the use by a state or local gov4 ernment of proceeds from the sale of bonds to

5 provide the matching contribution is not consid6 ered to be a contribution derived directly or in7 directly from Federal funds, without regard to

8 the Federal income tax treatment of interest paid

9 on those bonds or the Federal income tax treat10 ment of those bonds.

11 ‘‘(2) BONUS FOR 25-PERCENT INCREASE IN

12 USAGE.—Except as provided in paragraph (3), if,

13 after any 12-month period during which a marketing

14 plan has been in effect, the Secretary determines that

15 the marketing plan has increased average monthly

16 boardings, or the level of passenger usage, at the air17 port facilities at the eligible place, by 25 percent or

18 more, then only 10 percent of the publicly financed

19 costs associated with the marketing plan shall be re20 quired to come from non-Federal sources for the fol21 lowing 12-month period.

22 ‘‘(3) BONUS FOR 50-PERCENT INCREASE IN

23 USAGE.—If, after any 12-month period during which

24 a marketing plan has been in effect, the Secretary de25 termines that the marketing plan has increased aver-
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1 age monthly boardings, or the level of passenger

2 usage, at the airport facilities at the eligible place, by

3 50 percent or more, then no portion of the publicly

4 financed costs associated with the marketing plan

5 shall be required to come from non-Federal sources for

6 the following 12-month period.

7 ‘‘§ 41783. State marketing assistance

8 ‘‘The Secretary of Transportation may provide up to

9 $50,000 in technical assistance to any State within which

10 an eligible point that receives subsidized service by an air

11 carrier under section 41733 is located for the purpose of

12 assisting the State and such communities to develop meth13 ods to increase boardings in such communities. At least 10

14 percent of the costs of the activity with which the assistance

15 is associated shall come from non-Federal sources, including

16 contributions in kind.

17 ‘‘§ 41784. Definitions

18 ‘‘In this subchapter:

19 ‘‘(1) ELIGIBLE PLACE.—The term ‘eligible place’

20 has the meaning given that term in section

21 41731(a)(1), subject to the provisions of section 332 of

22 the Department of Transportation and Related Agen23 cies Appropriations Act, 2000 (49 U.S.C. 41731

24 note).
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1 ‘‘(2) ELIGIBLE ESSENTIAL AIR SERVICE COMMU2 NITY.—The term ‘eligible essential air service commu3 nity’ means an eligible place that—

4 ‘‘(A) submits an application to the Sec5 retary in such form, at such time, and con6 taining such information as the Secretary may

7 require, including a detailed marketing plan, or

8 specifications for the development of such a plan,

9 to increase average boardings, or the level of pas10 senger usage, at its airport facilities; and

11 ‘‘(B) provides assurances, satisfactory to the

12 Secretary, that it is able to meet the non-Federal

13 funding requirements of section 41782(b)(1).

14 ‘‘(3) PASSENGER BOARDINGS.—The term ‘pas15 senger boardings’ has the meaning given that term by

16 section 47102(10).

17 ‘‘(4) SPONSOR.—The term ‘sponsor’ has the

18 meaning given that term in section 47102(19).

19 ‘‘§ 41785. Authorization of appropriations

20 ‘‘There are authorized to be appropriated to the Sec21 retary of Transportation $12,000,000 for each of fiscal

22 years 2004 through 2006, to carry out this subchapter, not

23 more than $200,000 per year of which may be used for ad24 ministrative costs.’’.
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1 (b) CONFORMING AMENDMENT.—The chapter analysis

2 for chapter 417 of such title is amended by inserting after

3 the item relating to section 41767 the following:

‘‘SUBCHAPTER IV—MARKETING INCENTIVE PROGRAM

‘‘41781. Purpose.

‘‘41782. Marketing program.

‘‘41783. State marketing assistance.

‘‘41784. Definitions.

‘‘41785. Authorization of appropriations.’’.

4 SEC. 353. PILOT PROGRAMS.

5 (a) IN GENERAL.—Subchapter II of chapter 417 of

6 title 49, United States Code, is amended by adding at the

7 end the following:

8 ‘‘§ 41745. Other pilot programs

9 ‘‘(a) IN GENERAL.—If the entire amount authorized

10 to be appropriated to the Secretary of Transportation by

11 section 41785 is appropriated for fiscal years 2004 through

12 2007, the Secretary of Transportation shall establish pilot

13 programs that meet the requirements of this section for im14 proving service to communities receiving essential air serv15 ice assistance under this subchapter or consortia of such

16 communities.

17 ‘‘(b) PROGRAMS AUTHORIZED.—

18 ‘‘(1) COMMUNITY FLEXIBILITY.—The Secretary

19 shall establish a pilot program for not more than 10

20 communities or consortia of communities under which

21 the airport sponsor of an airport serving the commu22 nity or consortium may elect to forego any essential
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1 air service assistance under preceding sections of this

2 subchapter for a 10-year period in exchange for a

3 grant from the Secretary equal in value to twice the

4 annual essential air service assistance received for the

5 most recently ended calendar year. Under the pro6 gram, and notwithstanding any provision of law to

7 the contrary, the Secretary shall make a grant to each

8 participating sponsor for use by the recipient for any

9 project that—

10 ‘‘(A) is eligible for assistance under chapter

11 471;

12 ‘‘(B) is located on the airport property; or

13 ‘‘(C) will improve airport facilities in a

14 way that would make such facilities more usable

15 for general aviation.

16 ‘‘(2) EQUIPMENT CHANGES.—

17 ‘‘(A) IN GENERAL.—The Secretary shall es18 tablish a pilot program for not more than 10

19 communities or consortia of communities under

20 which, upon receiving a petition from the spon21 sor of the airport serving the community or con22 sortium, the Secretary shall authorize and re23 quest the essential air service provider for that

24 community or consortium to use smaller equip25 ment to provide the service and to consider in-
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1 creasing the frequency of service using such

2 smaller equipment. Before granting any such pe3 tition, the Secretary shall determine that pas4 senger safety would not be compromised by the

5 use of such smaller equipment. Any community

6 that participates in a pilot program under this

7 subparagraph is deemed to have waived the min8 imum service requirements under section

9 41732(b) for purposes of its participation in that

10 pilot program.

11 ‘‘(B) ALTERNATIVE SERVICES.—For any 3

12 aiport sponsors participating in the program es13 tablished under subparagraph (A), the Secretary

14 may establish a pilot program under which—

15 ‘‘(i) the Secretary provides 100 percent

16 Federal funding for reasonable levels of al17 ternative transportation services from the

18 eligible place to the nearest hub airport or

19 small hub airport;

20 ‘‘(ii) the Secretary will authorize the

21 sponsor to use its essential air service sub22 sidy funds provided under preceding sec23 tions of this subchapter for any airport-re24 lated project that would improve airport fa25 cilities; and
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1 ‘‘(iii) the sponsor may make an irrev2 ocable election to terminate its participa3 tion in the pilot program established under

4 this paragraph after 1 year.

5 ‘‘(3) COST-SHARING.—The Secretary shall estab6 lish a pilot program under which the sponsors of air7 ports serving a community or consortium of commu8 nities share the cost of providing air transportation

9 service greater than the basic essential air service pro10 vided under this subchapter.

11 ‘‘(c) CODE-SHARING.—Under the pilot program estab12 lished under subsection (a), the Secretary is authorized to

13 require air carriers providing service to participating com14 munities and major air carriers (as defined in section

15 41716(a)(2)) serving large hub airports (as defined in sec16 tion 41731(a)(3)) to participate in multiple code-share ar17 rangements consistent with normal industry practice when18 ever and wherever the Secretary determines that such mul19 tiple code-sharing arrangements would improve air trans20 portation services. The Secretary may not require air car21 riers to participate in such arrangements under this sub22 section for more than 10 such communities.

23 ‘‘(d) TRACKING SERVICE.—The Secretary shall require

24 carriers providing subsidy for service under section 41733

25 to track changes in services, including on-time arrivals and
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1 departures, on such subsidized routes, and to report such

2 information to the Secretary on a semi-annual basis in

3 such form as the Secretary may require.

4 ‘‘(e) ADMINISTRATIVE PROVISIONS.—In order to par5 ticipate in a pilot program established under this section,

6 the airport sponsor for a community or consortium of com7 munities shall submit an application to the Secretary in

8 such form, at such time, and containing such information

9 as the Secretary may require.’’.

10 (b) CONFORMING AMENDMENT.—The chapter analysis

11 for chapter 417 of such title is amended by inserting after

12 the item relating to section 41744 the following:

‘‘41745. Other pilot programs.’’.

13 SEC. 354. EAS PROGRAM AUTHORITY CHANGES.

14 (a) RATE RENEGOTIATION.—If the Secretary of Trans15 portation determines that essential air service providers are

16 experiencing significantly increased costs of providing serv17 ice under subchapter II of chapter 417 of title 49, United

18 States Code, the Secretary of Transportation may increase

19 the rates of compensation payable under that subchapter

20 within 30 days after the date of enactment of this Act with21 out regard to any agreements or requirements relating to

22 the renegotiation of contracts. For purposes of this sub23 section, the term ‘‘significantly increased costs’’ means an

24 average annual total unit cost increase (but not increases

25 in individual unit costs) of 10 percent or more in relation
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1 to the unit rates used to construct the subsidy rate, based

2 on the carrier’s internal audit of its financial statements.

3 (b) RETURNED FUNDS.—Notwithstanding any provi4 sion of law to the contrary, any funds made available under

5 subchapter II of chapter 417 of title 49, United States Code,

6 that are returned to the Secretary by an airport sponsor

7 because of decreased subsidy needs for essential air service

8 under that subchapter shall remain available to the Sec9 retary and may be used by the Secretary under that sub10 chapter to increase the frequency of flights at that airport.

11 (c) SMALL COMMUNITY AIR SERVICE DEVELOPMENT

12 PILOT PROGRAM.—Section 41743(h) of such title is amend13 ed by striking ‘‘an airport’’ and inserting ‘‘each airport’’.

14 SEC. 355. ONE-YEAR EXTENSION OF EAS ELIGIBILITY FOR

15 COMMUNITIES TERMINATED IN 2003 DUE TO

16 DECREASED AIR TRAVEL.

17 Notwithstanding the rate of subsidy limitation in sec18 tion 332 of the Department of Transportation and Related

19 Agencies Appropriations Act, 2000, the Secretary of Trans20 portation may not terminate an essential air service sub21 sidy provided under chapter 417 of title 49, United States

22 Code, before the end of calendar year 2004 for air service

23 to a community—
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1 (1) whose calendar year ridership for 2000 was

2 sufficient to keep the per passenger subsidy below that

3 limitation; and

4 (2) that has received notice that its subsidy will

5 be terminated during calendar year 2003 because de6 creased ridership has caused the subsidy to exceed

7 that limitation.

8 Subtitle C—Financial Improvement

9 Effort and Executive Compensa10 tion Report

11 SEC. 371. GAO REPORT ON AIRLINES ACTIONS TO IMPROVE

12 FINANCES AND ON EXECUTIVE COMPENSA13 TION.

14 (a) FINDING.—The Congress finds that the United

15 States government has by law provided substantial finan16 cial assistance to United States commercial airlines in the

17 form of war risk insurance and reinsurance and other eco18 nomic benefits and has imposed substantial economic and

19 regulatory burdens on those airlines. In order to determine

20 the economic viability of the domestic commercial airline

21 industry and to evaluate the need for additional measures

22 or the modification of existing laws, the Congress needs

23 more frequent information and independently verified in24 formation about the financial condition of these airlines.
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1 (b) SEMIANNUAL REPORTS.—The Comptroller General

2 shall prepare a semiannual report to the Congress—

3 (1) analyzing measures being taken by air car4 riers engaged in air transportation and intrastate air

5 transportation (as such terms are used in subtitle VII

6 of title 49, United States Code) to reduce costs and

7 to improve their earnings and profits and balance

8 sheets; and

9 (2) stating—

10 (A) the total compensation (as defined in

11 section 104(b) of the Air Transportation Safety

12 and System Stabilization Act (49 U.S.C. 40101

13 note)) paid by the air carrier to each officer or

14 employee of that air carrier to whom that section

15 applies for the period to which the report relates;

16 and

17 (B) the terms and value (determined on the

18 basis of the closing price of the stock on the last

19 business day of the period to which the report re20 lates) of any stock options awarded to such offi21 cer during that period.

22 (c) GAO AUTHORITY.—In order to compile the reports

23 required by subsection (b), the Comptroller General, or any

24 of the Comptroller General’s duly authorized representa25 tives, shall have access for the purpose of audit and exam-
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1 ination to any books, accounts, documents, papers, and

2 records of such air carriers that relate to the information

3 required to compile the reports. The Comptroller General

4 shall submit with each such report a certification as to

5 whether the Comptroller General has had access to sufficient

6 information to make informed judgments on the matters

7 covered by the report.

8 (d) REPORTS TO CONGRESS.—The Comptroller Gen9 eral shall transmit the compilation of reports required by

10 subsection (c) to the Senate Committee on Commerce,

11 Science, and Transportation and the House of Representa12 tives Committee on Transportation and Infrastructure.

13 TITLE IV—AVIATION SECURITY

14 SEC. 401. STUDY OF EFFECTIVENESS OF TRANSPORTATION

15 SECURITY SYSTEM.

16 (a) IN GENERAL.—The Secretary of Homeland Secu17 rity, in consultation with representatives of the airport

18 community, shall study the effectiveness of the aviation se19 curity system, including the air marshal program, hard20 ening of cockpit doors, and security screening of passengers,

21 checked baggage, and cargo.

22 (b) REPORT.—The Secretary shall transmit a report

23 of the Secretary’s findings and conclusions together with

24 any recommendations, including legislative recommenda25 tions, the Secretary may have for improving the effective-
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1 ness of aviation security to the Senate Committee on Com2 merce, Science, and Transportation and the House of Rep3 resentatives Committee on Transportation and Infrastruc4 ture within 6 months after the date of enactment of this

5 Act. In the report the Secretary shall also describe any rede6 ployment of Transportation Security Administration re7 sources based on those findings and conclusions. The Sec8 retary may submit the report to the Committees in classi9 fied and redacted form.

10 SEC. 402. AVIATION SECURITY CAPITAL FUND.

11 (a) IN GENERAL.—There may be established within the

12 Department of Homeland Security a fund to be known as

13 the Aviation Security Capital Fund. There are authorized

14 to be appropriated to the Fund up to $500,000,000 for each

15 of the fiscal years 2004 through 2007, such amounts to be

16 derived from fees received under section 44940 of title 49,

17 United States Code. Amounts in the fund shall be allocated

18 in such a manner that—

19 (1) 40 percent shall be made available for hub

20 airports;

21 (2) 20 percent shall be made available for me22 dium hub airports;

23 (3) 15 percent shall be made available for small

24 hub airports and nonhub airports; and
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1 (4) 25 percent may be distributed at the Sec2 retary’s discretion.

3 (b) PURPOSE.—Amounts in the Fund shall be avail4 able to the Secretary of Homeland Security to provide fi5 nancial assistance to airport sponsors to defray capital in6 vestment in transportation security at airport facilities in

7 accordance with the provisions of this section. The program

8 shall be administered in concert with the airport improve9 ment program under chapter 417 of title 49, United States

10 Code.

11 (c) APPORTIONMENT.—Amounts made available under

12 subsection (a)(1), (a)(2), or (a)(3) shall be apportioned

13 among the airports in each category in accordance with a

14 formula based on the ratio that passenger enplanements at

15 each airport in the category bears to the total passenger

16 enplanements at all airports in that category.

17 (d) LETTERS OF INTENT.—The Secretary of Homeland

18 Security, or his delegate, may execute letters of intent to

19 commit funding to airport sponsors from the Fund.

20 (e) CONFORMING AMENDMENT.—Section 44940(a)(1)

21 of title 49, United States Code, is amended by adding at

22 the end the following:

23 ‘‘(H) The costs of security-related capital

24 improvements at airports.’’.
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1 (f) DEFINITIONS.—Any term used in this section that

2 is defined or used in chapter 417 of title 49, United States

3 Code, has the meaning given that term in that chapter.

4 SEC. 403. TECHNICAL AMENDMENTS RELATED TO SECU5 RITY-RELATED AIRPORT DEVELOPMENT.

6 (a) DEFINITION OF AIRPORT DEVELOPMENT.—Section

7 47102(3)(B) is amended—

8 (1) by inserting ‘‘and’’ after the semicolon in

9 clause (viii);

10 (2) by striking ‘‘circular; and’’ in clause (ix)

11 and inserting ‘‘circular.’’; and

12 (3) by striking clause (x).

13 (b) IMPROVEMENT OF FACILITIES AND EQUIPMENT.—

14 Section 308(a) of the Federal Aviation Reauthorization Act

15 of 1996 (49 U.S.C. 44901 note) is amended by striking

16 ‘‘travel.’’ and inserting ‘‘travel if the improvements or

17 equipment will be owned and operated by the airport.’’.

18 SEC. 404. ARMED FORCES CHARTERS.

19 Section 132 of the Aviation and Transportation Secu20 rity Act (49 U.S.C. 44903 note) is amended by adding at

21 the end the following:

22 ‘‘(c) EXEMPTION FOR ARMED FORCES CHARTERS.—

23 ‘‘(1) IN GENERAL.—Subsections (a) and (b) of

24 this section, and chapter 449 of title 49, United

25 States Code, do not apply to passengers and property
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1 carried by aircraft when employed to provide charter

2 transportation to members of the armed forces.

3 ‘‘(2) IN GENERAL.—The Secretary of Defense, in

4 consultation with the Secretary of Homeland Security

5 and the Secretary of Transportation, shall establish

6 security procedures relating to the operation of air7 craft when employed to provide charter transpor8 tation to members of the armed forces to or from an

9 airport described in section 44903(c) of title 49,

10 United States Code.

11 ‘‘(3) ARMED FORCES DEFINED.—In this sub12 section, the term ‘armed forces’ has the meaning given

13 that term by section 101(a)(4) of title 10, United

14 States Code.’’.

15 SEC. 405. ARMING CARGO PILOTS AGAINST TERRORISM.

16 (a) SHORT TITLE.—This section may be cited as the

17 ‘‘Arming Cargo Pilots Against Terrorism Act’’.

18 (b) FINDINGS.—Congress makes the following findings:

19 (1) During the 107th Congress, both the Senate

20 and the House of Representatives overwhelmingly

21 passed measures that would have armed pilots of

22 cargo aircraft.

23 (2) Cargo aircraft do not have Federal air mar24 shals, trained cabin crew, or determined passengers to

25 subdue terrorists.
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1 (3) Cockpit doors on cargo aircraft, if present at

2 all, largely do not meet the security standards re3 quired for commercial passenger aircraft.

4 (4) Cargo aircraft vary in size and many are

5 larger and carry larger amounts of fuel than the air6 craft hijacked on September 11, 2001.

7 (5) Aircraft cargo frequently contains hazardous

8 material and can contain deadly biological and chem9 ical agents and quantities of agents that cause com10 municable diseases.

11 (6) Approximately 12,000 of the nation’s 90,000

12 commercial pilots serve as pilots and flight engineers

13 on cargo aircraft.

14 (7) There are approximately 2,000 cargo flights

15 per day in the United States, many of which are

16 loaded with fuel for outbound international travel or

17 are inbound from foreign airports not secured by the

18 Transportation Security Administration.

19 (8) Aircraft transporting cargo pose a serious

20 risk as potential terrorist targets that could be used

21 as weapons of mass destruction.

22 (9) Pilots of cargo aircraft deserve the same abil23 ity to protect themselves and the aircraft they pilot as

24 other commercial airline pilots.
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1 (10) Permitting pilots of cargo aircraft to carry

2 firearms creates an important last line of defense

3 against a terrorist effort to commandeer a cargo air4 craft.

5 (c) SENSE OF CONGRESS.—It is the sense of Congress

6 that members of a flight deck crew of a cargo aircraft should

7 be armed with a firearm and taser to defend the cargo air8 craft against an attack by terrorists that could result in

9 the use of the aircraft as a weapon of mass destruction or

10 for other terrorist purposes.

11 (d) ARMING CARGO PILOTS AGAINST TERRORISM.—

12 Section 44921 of title 49, United States Code, is amended—

13 (1) in subsection (a), by striking ‘‘passenger’’

14 each place that it appears; and

15 (2) in subsection (k)—

16 (A) in paragraph (2)—

17 (i) by striking ‘‘or,’’ and all that fol18 lows; and

19 (ii) by inserting ‘‘or any other flight

20 deck crew member.’’; and

21 (B) by adding at the end the following new

22 paragraph:

23 ‘‘(3) ALL-CARGO AIR TRANSPORTATION.—For the

24 purposes of this section, the term air transportation

25 includes all-cargo air transportation.’’.
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1 (e) TIME FOR IMPLEMENTATION.—The training of pi2 lots as Federal flight deck officers required in the amend3 ments made by subsection (d) shall begin as soon as prac4 ticable and no later than 90 days after the date of enact5 ment of this Act.

6 (f) EFFECT ON OTHER LAWS.—The requirements of

7 subsection (e) shall have no effect on the deadlines for imple8 mentation contained in section 44921 of title 49, United

9 States Code, as in effect on the day before the date of enact10 ment of this Act.

11 SEC. 406. GENERAL AVIATION AND AIR CHARTERS.

12 Section 132(a) of the Aviation and Transportation Se13 curity Act (49 U.S.C. 44944 note) is amended by striking

14 ‘‘12,500 pounds or more’’ and inserting ‘‘more than 12,500

15 pounds’’.

16 SEC. 407. AIR DEFENSE IDENTIFICATION ZONE.

17 (a) IN GENERAL.—If the Administrator of the Federal

18 Aviation Administration establishes an Air Defense Identi19 fication Zone (in this section referred as an ‘‘ADIZ’’), the

20 Administrator shall, not later than 60 days after the date

21 of establishing the ADIZ, transmit to the Committee on

22 Transportation and Infrastructure of the House of Rep23 resentatives and the Committee on Commerce, Science, and

24 Transportation of the Senate, a report containing an expla25 nation of the need for the ADIZ. The Administrator shall
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1 provide the Committees an updated report every 60 days

2 until the establishment of the ADIZ is rescinded. The re3 ports and updates shall be transmitted in classified form.

4 (b) EXISTING ADIZ.—If an ADIZ is in effect on the

5 date of enactment of this Act, the Administrator shall trans6 mit an initial report under subsection (a) to the Committee

7 on Transportation and Infrastructure of the House of Rep8 resentatives and the Committee on Commerce, Science, and

9 Transportation of the Senate not later than 30 days after

10 the date of enactment of this Act.

11 (c) REPORTING REQUIREMENTS.—If a report required

12 under subsection (a) or (b) indicates that the ADIZ is to

13 be continued, the Administrator shall outline changes in

14 procedures and requirements to improve operational effi15 ciency and minimize the operational impacts of the ADIZ

16 on pilots and air traffic controllers.

17 (d) DEFINITION.—In this section, the terms ‘‘Air De18 fense Identification Zone’’ and ‘‘ADIZ’’ mean a zone estab19 lished by the Administrator with respect to airspace under

20 18,000 feet in approximately a 15 to 38 mile radius around

21 Washington, District of Columbia, for which security meas22 ures are extended beyond the existing 15-mile-no-fly zone

23 around Washington and in which general aviation aircraft

24 are required to adhere to certain procedures issued by the

25 Administrator.
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1 SEC. 408. REPORT ON PASSENGER PRESCREENING PRO2 GRAM.

3 (a) IN GENERAL.—Within 90 days after the date of

4 enactment of this Act, the Secretary of Homeland Security,

5 after consultation with the Attorney General, shall submit

6 a report in writing to the Senate Committee on Commerce,

7 Science, and Transportation and the House of Representa8 tives Committee on Transportation and Infrastructure on

9 the potential impact of the Transportation Security Admin10 istration’s proposed Computer Assisted Passenger

11 Prescreening system, commonly known as CAPPS II, on

12 the privacy and civil liberties of United States citizens.

13 (b) SPECIFIC ISSUES TO BE ADDRESSED.—The report

14 shall address the following:

15 (1) Whether and for what period of time data

16 gathered on individual travelers will be retained, who

17 will have access to such data, and who will make de18 cisions concerning access to such data.

19 (2) How the Transportation Security Adminis20 tration will treat the scores assigned to individual

21 travelers to measure the likelihood they may pose a

22 security threat, including how long such scores will be

23 retained and whether and under what circumstances

24 they may be shared with other governmental, non25 governmental, or commercial entities.
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1 (3) The role airlines and outside vendors or con2 tractors will have in implementing and operating the

3 system, and to what extent will they have access, or

4 the means to obtain access, to data, scores, or other

5 information generated by the system.

6 (4) The safeguards that will be implemented to

7 ensure that data, scores, or other information gen8 erated by the system will be used only as officially in9 tended.

10 (5) The procedures that will be implemented to

11 mitigate the effect of any errors, and what procedural

12 recourse will be available to passengers who believe

13 the system has wrongly barred them from taking

14 flights.

15 (6) The oversight procedures that will be imple16 mented to ensure that, on an ongoing basis, privacy

17 and civil liberties issues will continue to be considered

18 and addressed with high priority as the system is in19 stalled, operated and updated.

20 SEC. 409. REMOVAL OF CAP ON TSA STAFFING LEVEL.

21 The matter appearing under the heading ‘‘AVIATION

22 SECURITY’’ in the appropriations for the Transportation

23 Security Administration in the Transportation and Re24 lated Agencies Appropriation Act, 2003 (Public Law 108–

25 7; 117 Stat. 386) is amended by striking the fifth proviso.
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1 SEC. 410. FOREIGN REPAIR STATION SAFETY AND SECU2 RITY.

3 (a) DEFINITIONS.—In this section:

4 (1) ADMINISTRATOR.—The term ‘‘Adminis5 trator’’ means the Administrator of the Federal Avia6 tion Administration.

7 (2) DOMESTIC REPAIR STATION.—The term ‘‘do8 mestic repair station’’ means a repair station or shop

9 that—

10 (A) is described in section 44707(2) of title

11 49, United States Code; and

12 (B) is located in the United States.

13 (3) FOREIGN REPAIR STATION.—The term ‘‘for14 eign repair station’’ means a repair station or shop

15 that—

16 (A) is described in section 44707(2) of title

17 49, United States Code; and

18 (B) is located outside of the United States.

19 (4) UNDER SECRETARY.—The term ‘‘Under Sec20 retary’’ means the Under Secretary for Border and

21 Transportation Security of the Department of Home22 land Security.

23 (b) APPLICABILITY OF STANDARDS.—Within 180 days

24 after the date of enactment of this Act, the Administrator

25 shall issue regulations to ensure that foreign repair stations
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1 meet the same level of safety required of domestic repair

2 stations.

3 (c) SPECIFIC STANDARDS.—In carrying out subsection

4 (b), the Administrator shall, at a minimum, specifically en5 sure that foreign repair stations, as a condition of being

6 certified to work on United States registered aircraft—

7 (1) institute a program of drug and alcohol test8 ing of its employees working on United States reg9 istered aircraft and that such a program provides an

10 equivalent level of safety achieved by the drug and al11 cohol testing requirements that workers are subject to

12 at domestic repair stations;

13 (2) agree to be subject to the same type and level

14 of inspection by the Federal Aviation Administration

15 as domestic repair stations and that such inspections

16 occur without prior notice to the country in which the

17 station is located; and

18 (3) follow the security procedures established

19 under subsection (d).

20 (d) SECURITY AUDITS.—

21 (1) IN GENERAL.—To ensure the security of

22 maintenance and repair work conducted on United

23 States aircraft and components at foreign repair sta24 tions, the Under Secretary, in consultation with the

25 Administrator, shall complete a security review and
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1 audit of foreign repair stations certified by the Ad2 ministrator under part 145 of title 14, Code of Fed3 eral Regulations. The review shall be completed not

4 later than 180 days after the date on which the Under

5 Secretary issues regulations under paragraph (6).

6 (2) ADDRESSING SECURITY CONCERNS.—The

7 Under Secretary shall require a foreign repair station

8 to address the security issues and vulnerabilities iden9 tified in a security audit conducted under paragraph

10 (1) within 90 days of providing notice to the repair

11 station of the security issues and vulnerabilities iden12 tified.

13 (3) SUSPENSIONS AND REVOCATIONS OF CERTIFI14 CATES.—

15 (A) FAILURE TO CARRY OUT EFFECTIVE SE16 CURITY MEASURES.—If the Under Secretary de17 termines as a result of a security audit that a

18 foreign repair station does not maintain and

19 carry out effective security measures or if a for20 eign repair station does not address the security

21 issues and vulnerabilities as required under sub22 section (d)(2), the Under Secretary shall notify

23 the Administrator of the determination. Upon re24 ceipt of the determination, the Administrator

25 shall suspend the certification of the repair sta-
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1 tion until such time as the Under Secretary de2 termines that the repair station maintains and

3 carries out effective security measures and has

4 addressed the security issues identified in the

5 audit, and transmits the determination to the

6 Administrator.

7 (B) IMMEDIATE SECURITY RISK.—If the

8 Under Secretary determines that a foreign repair

9 station poses an immediate security risk, the

10 Under Secretary shall notify the Administrator

11 of the determination. Upon receipt of the deter12 mination, the Administrator shall revoke the cer13 tification of the repair station.

14 (4) FAILURE TO MEET AUDIT DEADLINE.—If the

15 security audits required by paragraph (1) are not

16 completed on or before the date that is 180 days after

17 the date on which the Under Secretary issues regula18 tions under paragraph (6), the Administrator may

19 not certify, or renew the certification of, any foreign

20 repair station until such audits are completed.

21 (5) PRIORITY FOR AUDITS.—In conducting the

22 audits described in paragraph (1), the Under Sec23 retary and the Administrator shall give priority to

24 foreign repair stations located in countries identified
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1 by the United States Government as posing the most

2 significant security risks.

3 (6) REGULATIONS.—Not later than 180 days

4 after the date of enactment of this section, the Under

5 Secretary, in consultation with the Administrator,

6 shall issue final regulations to ensure the security of

7 foreign and domestic repair stations. If final regula8 tions are not issued within 180 days of the date of

9 enactment of this Act, the Administrator may not cer10 tify, or renew the certification of, any foreign repair

11 station until such regulations have been issued.

12 TITLE V—MISCELLANEOUS

13 SEC. 501. EXTENSION OF WAR RISK INSURANCE AUTHOR14 ITY.

15 Section 44310 is amended by striking ‘‘2004.’’ and in16 serting ‘‘2006.’’.

17 SEC. 502. COST-SHARING OF AIR TRAFFIC MODERNIZATION

18 PROJECTS.

19 (a) IN GENERAL.—Chapter 445 is amended by adding

20 at the end the following:

21 ‘‘§ 44517. Program to permit cost-sharing of air traf22 fic modernization projects

23 ‘‘(a) IN GENERAL.—Subject to the requirements of this

24 section, the Secretary may carry out a program under

25 which the Secretary may make grants to project sponsors
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1 for not more than 10 eligible projects per fiscal year for

2 the purpose of improving aviation safety and enhancing

3 mobility of the Nation’s air transportation system by en4 couraging non-Federal investment in critical air traffic

5 control facilities and equipment.

6 ‘‘(b) FEDERAL SHARE.—The Federal share of the cost

7 of an eligible project carried out under the program shall

8 not exceed 33 percent. The non-Federal share of the cost of

9 an eligible project shall be provided from non-Federal

10 sources, including revenues collected pursuant to section

11 40117 of this title.

12 ‘‘(c) LIMITATION ON GRANT AMOUNTS.—No eligible

13 project may receive more than $5,000,000 in Federal funds

14 under the program.

15 ‘‘(d) FUNDING.—The Secretary shall use amounts ap16 propriated under section 48101(a) of this title to carry out

17 this program.

18 ‘‘(e) DEFINITIONS.—In this section:

19 ‘‘(1) ELIGIBLE PROJECT.—The term ‘eligible

20 project’ means a project relating to the Nation’s air

21 traffic control system that is certified or approved by

22 the Administrator and that promotes safety, effi23 ciency, or mobility. Such projects may include—

24 ‘‘(A) airport-specific air traffic facilities

25 and equipment, including local area augmenta-
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1 tion systems, instrument landing systems, weath2 er and wind shear detection equipment, lighting

3 improvements, and control towers;

4 ‘‘(B) automation tools to effect improve5 ments in airport capacity, including passive

6 final approach spacing tools and traffic manage7 ment advisory equipment; and

8 ‘‘(C) facilities and equipment that enhance

9 airspace control procedures, including consolida10 tion of terminal radar control facilities and

11 equipment, or assist in en route surveillance, in12 cluding oceanic and offshore flight tracking.

13 ‘‘(2) PROJECT SPONSOR.—The term ‘project

14 sponsor’ means any major user of the National Air15 space System, as determined by the Secretary, includ16 ing a public-use airport or a joint venture between a

17 public-use airport and one or more air carriers.

18 ‘‘(f) TRANSFERS OF EQUIPMENT.—Notwithstanding

19 any other provision of law, and upon agreement by the Ad20 ministrator of the Federal Aviation Administration, project

21 sponsors may transfer, without consideration, to the Fed22 eral Aviation Administration, facilities, equipment, or au23 tomation tools, the purchase of which was assisted by a

24 grant made under this section, if such facilities, equipment
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1 or tools meet Federal Aviation Administration operation

2 and maintenance criteria.

3 ‘‘(g) GUIDELINES.—The Administrator shall issue ad4 visory guidelines on the implementation of the program,

5 which shall not be subject to administrative rulemaking re6 quirements under subchapter II of chapter 5 of title 5.’’.

7 (b) CONFORMING AMENDMENT.—The chapter analyses

8 for chapter 445 is amended by adding at the end the fol9 lowing:

‘‘44517. Program to permit cost-sharing of air traffic modernization projects.’’.

10 SEC. 503. COUNTERFEIT OR FRAUDULENTLY REPRESENTED

11 PARTS VIOLATIONS.

12 Section 44726(a)(1) is amended—

13 (1) by striking ‘‘or’’ after the semicolon in sub14 paragraph (A);

15 (2) by redesignating subparagraph (B) as sub16 paragraph (D);

17 (3) by inserting after subparagraph (A) the fol18 lowing:

19 ‘‘(B) who knowingly, and with intent to de20 fraud, carried out or facilitated an activity pun21 ishable under a law described in subparagraph

22 (A);

23 ‘‘(C) whose certificate is revoked under sub24 section (b) of this section; or’’; and
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1 (4) by striking ‘‘convicted of such a violation.’’

2 in subparagraph (D), as redesignated, and inserting

3 ‘‘described in subparagraph (A), (B) or (C).’’.

4 SEC. 504. CLARIFICATIONS TO PROCUREMENT AUTHORITY.

5 (a) UPDATE AND CLARIFICATION OF AUTHORITY.—

6 (1) Section 40110(c) is amended to read as fol7 lows:

8 ‘‘(c) DUTIES AND POWERS.—When carrying out sub9 section (a) of this section, the Administrator of the Federal

10 Aviation Administration may—

11 ‘‘(1) notwithstanding section 1341(a)(1) of title

12 31, lease an interest in property for not more than 20

13 years;

14 ‘‘(2) consider the reasonable probable future use

15 of the underlying land in making an award for a

16 condemnation of an interest in airspace; and

17 ‘‘(3) dispose of property under subsection (a)(2)

18 of this section, except for airport and airway prop19 erty and technical equipment used for the special pur20 poses of the Administration, only under subchapter

21 III of chapter 5 of title 40, United States Code.’’.

22 (2) Section 40110(d)(1) is amended by striking

23 ‘‘implement, not later than January 1, 1996,’’ and

24 inserting ‘‘implement’’.
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1 (b) CLARIFICATION.—Section 106(f)(2)(A)(ii) is

2 amended by striking ‘‘property’’ and inserting ‘‘property,

3 services,’’.

4 SEC. 505. JUDICIAL REVIEW.

5 Section 46110(c) is amended by adding at the end the

6 following: ‘‘Except as otherwise provided in this subtitle,

7 judicial review of an order issued, in whole or in part, pur8 suant to this part, part B of this subtitle , or subsection

9 (l) or (s) of section 114 of this title, shall be in accordance

10 with the provisions of this section.’’.

11 SEC. 506. CIVIL PENALTIES.

12 (a) INCREASE IN MAXIMUM CIVIL PENALTY.—Section

13 46301(a) is amended—

14 (1) by striking ‘‘$1,000’’ in paragraph (1) and

15 inserting ‘‘$25,000’’;

16 (2) by striking ‘‘or’’ the last time it appears in

17 paragraph (1)(A);

18 (3) by striking ‘‘section )’’ in paragraph (1)(A),

19 and inserting ‘‘section), or section 47133’’;

20 (4) by striking paragraphs (2), (3), (6), and (7)

21 and redesignating paragraphs (4), (5), and (8) as

22 paragraphs (2), (3), and (4), respectively; and

23 (5) by striking ‘‘paragraphs (1) and (2)’’ in

24 paragraph (4), as redesignated, and inserting ‘‘para25 graph (1)’’.
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1 (b) INCREASE IN LIMIT ON ADMINISTRATIVE AUTHOR2 ITY AND CIVIL PENALTY.—Section 46301(d) is amended—

3 (1) by striking ‘‘$50,000;’’ in paragraph (4)(A)

4 by inserting ‘‘$50,000, if the violation occurred before

5 the date of enactment of the Aviation Authorization

6 Act of 2003, or $1,000,000, if the violation occurred

7 on or after that date;’’; and

8 (2) by striking ‘‘$50,000.’’ in paragraph (8) and

9 inserting ‘‘$50,000, if the violation occurred before the

10 date of enactment of the Aviation Authorization Act

11 of 2003, or $1,000,000, if the violation occurred on or

12 after that date.’’.

13 SEC. 507. MISCELLANEOUS AMENDMENTS.

14 (a) AMOUNTS SUBJECT TO APPORTIONMENT UNDER

15 CHAPTER 471.—

16 (1) IN GENERAL.—Section 47102 is amended—

17 (A) by striking paragraph (6) and inserting

18 the following:

19 ‘‘(6) ‘amount newly made available’ means the

20 amount newly made available under section 48103 of

21 this title as an authorization for grant obligations for

22 a fiscal year, as that amount may be limited in that

23 year by a provision in an appropriations Act, but as

24 determined without regard to grant obligation recov-
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1 eries made in that year or amounts covered by section

2 47107(f).’’; and

3 (B) by redesignating paragraphs (7)

4 through (20) as paragraphs (8) through (21),

5 and inserting after paragraph (6) the following:

6 ‘‘(7) ‘amount subject to apportionment’ means

7 the amount newly made available, less the amount

8 made available for the fiscal year for administrative

9 expenses under section 48105.’’.

10 (2) CONFORMING AMENDMENTS.—

11 (A) Section 41742(b) is amended by strik12 ing ‘‘Notwithstanding section 47114(g) of this

13 title, any’’ and inserting ‘‘Any’’.

14 (B) Section 47104(b) is amended to read as

15 follows:

16 ‘‘(b) INCURRING OBLIGATIONS.—The Secretary may

17 incur obligations to make grants from the amount subject

18 to apportionment as soon as the apportionments required

19 by sections 47114(c) and (d)(2) of this title have been

20 issued.’’.

21 (C) Section 47107(f)(3) is amended by

22 striking ‘‘made available to the Secretary under

23 section 48103 of this title and’’ and inserting

24 ‘‘subject to apportionment, and is’’.

25 (D) Section 47114 is amended—
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1 (i) by striking subsection (a);

2 (ii) by striking ‘‘apportionment for

3 that fiscal year’’ in subsection (b) and in4 serting ‘‘apportionment’’;

5 (iii) by striking ‘‘total amount made

6 available under section 48103’’ in sub7 sections (c)(2)(C), (d)(3), and (e)(4) and in8 serting ‘‘amount subject to apportionment’’;

9 (iv) by striking ‘‘each fiscal year’’ in

10 subsection (c)(2)(A); and

11 (v) by striking ‘‘for each fiscal year’’

12 in subsection (d)(2).

13 (E) Subsection 47116(b) is amended by

14 striking ‘‘amounts are made available under sec15 tion 48103 of this title’’ and inserting ‘‘an

16 amount is subject to apportionment’’.

17 (F) Section 47117 is amended—

18 (i) by striking ‘‘amounts are made

19 available under section 48103 of this title.’’

20 in subsection (a) and inserting ‘‘an amount

21 is subject to apportionment.’’;

22 (ii) by striking ‘‘a sufficient amount is

23 made available under section 48103.’’ in

24 subsection (f)(2)(A) and inserting ‘‘there is
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1 a sufficient amount subject to apportion2 ment.’’;

3 (iii) in subsection (f)(2)(B), by insert4 ing ‘‘in’’ before ‘‘the succeeding’’;

5 (iv) by striking ‘‘NEWLY AVAILABLE’’

6 in the caption of subsection (f)(3) and in7 serting ‘‘RESTORED’’;

8 (v) by striking ‘‘newly available under

9 section 48103 of this title,’’ in subsection

10 (f)(3)(A) and inserting ‘‘subject to appor11 tionment,’’;

12 (vi) by striking ‘‘made available under

13 section 48103 for such obligations for such

14 fiscal year.’’ in subsection (f)(4) and insert15 ing ‘‘subject to apportionment.’’; and

16 (vii) by striking ‘‘enacted after Sep17 tember 3, 1982,’’ in subsection (g).

18 (b) RECOVERED FUNDS.—Section 47117 is amended

19 by adding at the end the following:

20 ‘‘(h) CREDITING OF RECOVERED FUNDS.—For the

21 purpose of determining compliance with a limitation on the

22 amount of grant obligations that may be incurred in a fis23 cal year imposed by an appropriations Act, an amount that

24 is recovered by canceling or reducing a grant obligation—
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1 ‘‘(1) shall be treated as a negative obligation that

2 is to be netted against the gross obligation limitation,

3 and

4 ‘‘(2) may permit the gross limitation to be ex5 ceeded by an equal amount.’’.

6 (c) AIRPORT SAFETY DATA COLLECTION.—Section

7 47130 is amended to read as follows:

8 ‘‘§ 47130. Airport safety data collection

9 ‘‘Notwithstanding any other provision of law, the Ad10 ministrator of the Federal Aviation Administration may

11 award a contract, using sole source or limited source au12 thority, or enter into a cooperative agreement with, or pro13 vide a grant from amounts made available under section

14 48103 to, a private company or entity for the collection of

15 airport safety data. If a grant is provided, the United

16 States Government’s share of the cost of the data collection

17 shall be 100 percent.’’.

18 (d) STATUTE OF LIMITATIONS.—Section

19 47107(l)(5)(A) is amended by inserting ‘‘or any other gov20 ernmental entity’’ after ‘‘sponsor’’.

21 (e) AUDIT CERTIFICATION.—Section 47107(m) is

22 amended—

23 (1) by striking ‘‘promulgate regulations that’’ in

24 paragraph (1) and inserting ‘‘include a provision in

25 the compliance supplement provisions to’’;
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1 (2) by striking ‘‘and opinion of the review’’ in

2 paragraph (1); and

3 (3) by striking paragraph (3).

4 (f) NOISE EXPOSURE MAPS.—Section 47503(a) is

5 amended by striking ‘‘1985,’’ and inserting ‘‘a forecast year

6 that is at least 5 years in the future,’’.

7 (g) CLARIFICATION OF APPLICABILITY OF PFCS TO

8 MILITARY CHARTERS.—Section 40117(e)(2) is amended—

9 (1) by striking ‘‘and’’ after the semicolon in sub10 paragraph (D);

11 (2) by striking ‘‘passengers.’’ in subparagraph

12 (E) and inserting ‘‘passengers; and’’; and

13 (3) by adding at the end the following:

14 ‘‘(F) enplaning at an airport if the passenger

15 did not pay for the air transportation which resulted

16 in such enplanement due to charter arrangements and

17 payment by the United States Department of De18 fense.’’.

19 SEC. 508. LOW-EMISSION AIRPORT VEHICLES AND INFRA20 STRUCTURE.

21 (a) PURPOSE.—The purpose of this section is to permit

22 the use of funds made available under subchapter 471 to

23 encourage commercial service airports in air quality non24 attainment and maintenance areas to undertake projects for

25 gate electrification, acquisition or conversion of airport ve-
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1 hicles and airport-owned ground support equipment to ac2 quire low-emission technology, low-emission technology fuel

3 systems, and other related air quality projects on a vol4 untary basis to improve air quality and more aggressively

5 address the constraints that emissions can impose on future

6 aviation growth. Use of those funds is conditioned on air7 ports receiving credits for emissions reductions that can be

8 used to mitigate the air quality effects of future airport de9 velopment. Making these projects eligible for funding in ad10 dition to those projects that are already eligible under sec11 tion 47102(3)(F) is intended to support those projects that,

12 at the time of execution, may not be required by the Clean

13 Air Act (42 U.S.C. 7501 et seq.), but may be needed in

14 the future.

15 (b) ACTIVITIES ADDED TO DEFINITION OF ‘‘AIRPORT

16 DEVELOPMENT’’.—Section 47102(3) is amended by adding

17 at the end the following:

18 ‘‘(K) work necessary to construct or modify

19 airport facilities to provide low-emission fuel

20 systems, gate electrification, and other related

21 air quality improvements at a commercial serv22 ice airport, if the airport is located in an air

23 quality nonattainment or maintenance area (as

24 defined in sections 171(2) and 175(A) of the

25 Clean Air Act (42 U.S.C. 7501(2), 7505a) and
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1 if such project will result in an airport receiving

2 appropriate emission credits, as described in sec3 tion 47139 of this title. The Secretary, in con4 sultation with the Administrator of the Environ5 mental Protection Agency, shall issue guidance

6 describing eligible low-emission modifications

7 and improvements and stating how airport

8 sponsors will demonstrate benefits.

9 ‘‘(L) a project for the acquisition or conver10 sion of vehicles and ground support equipment,

11 owned by a commercial service airport, to low12 emission technology, if the airport is located in

13 an air quality nonattainment or maintenance

14 area (as defined in sections 171(2) and 175(A)

15 of the Clean Air Act (42 U.S.C. 7501(2), 7505a)

16 and if such project will result in an airport re17 ceiving appropriate emission credits as described

18 in section 47139 of this title. The Secretary, in

19 consultation with the Administrator of the Envi20 ronmental Protection Agency, shall issue guid21 ance describing eligible low-emission vehicle tech22 nology and stating how airport sponsors will

23 demonstrate benefits. For airport-owned vehicles

24 and equipment, the acquisition of which are not

25 otherwise eligible for assistance under this sub-
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1 chapter, the incremental cost of equipping such

2 vehicles or equipment with low-emission tech3 nology shall be treated as eligible for assist4 ance.’’.

5 (c) LOW-EMISSION TECHNOLOGY DEFINED.—Section

6 47102 is amended by redesignating paragraphs (10)

7 through (20), as paragraphs (11) through (21) respectively,

8 and inserting after paragraph (9) the following:

9 ‘‘(11) ‘low-emission technology’ means technology

10 for new vehicles and equipment whose emission per11 formance is the best achievable under emission stand12 ards established by the Environmental Protection

13 Agency and that relies exclusively on alternative fuels

14 that are substantially non-petroleum based, as defined

15 by the Department of Energy, but not excluding hy16 brid systems.’’.

17 (d) EMISSIONS CREDITS.—

18 (1) IN GENERAL.—Subchapter I of chapter 471,

19 as amended by section 206 of this Act, is further

20 amended by adding at the end the following:

21 ‘‘§ 47139. Emission credits for air quality projects

22 ‘‘(a) IN GENERAL.—The Secretary and the Adminis23 trator of the Environmental Protection Agency shall jointly

24 agree on how to assure that airport sponsors receive appro25 priate emission credits for projects described in sections
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1 40117(a)(3)(G), 47102(3)(K), or 47102(3)(L) of this title.

2 The agreement must, at a minimum, include provisions to

3 ensure that—

4 ‘‘(1) the credits will be consistent with the Clean

5 Air Act (42 U.S.C. 7402 et seq.);

6 ‘‘(2) credits generated by the emissions reduc7 tions in criteria pollutants are kept by the airport

8 sponsor and may be used for purposes of any current

9 or future general conformity determination or as off10 sets under the New Source Review program;

11 ‘‘(3) there is national consistency in the way

12 credits are calculated and are provided to airports;

13 ‘‘(4) credits are provided to airport sponsors in

14 a timely manner; and

15 ‘‘(5) there is a method by which the Secretary

16 can be assured that, for any specific project for which

17 funding is being requested, the appropriate credits

18 will be granted.

19 ‘‘(b) ASSURANCE OF RECEIPT OF CREDITS.—

20 ‘‘(1) IN GENERAL.—As a condition for making a

21 grant for a project described in section 47102(3)(K),

22 47102(3)(L), or 47140 of this title, or as a condition

23 for granting approval to collect or use a passenger fa24 cility fee for a project described in sections

25 40117(a)(3)(G), 47102(3)(K), 47102(3)(L), or 47140
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1 of this title, the Secretary must receive assurance

2 from the State in which the project is located, or from

3 the Administrator of the Environmental Protection

4 Agency where there is a Federal Implementation

5 Plan, that the airport sponsor will receive appro6 priate emission credits in accordance with the condi7 tions of this subsection.

8 ‘‘(2) CREDITS FOR CERTAIN EXISTING

9 PROJECTS.—The Secretary and the Administrator of

10 the Environmental Protection Agency shall jointly

11 agree on how to provide emission credits to projects

12 previously approved under section 47136 of this title

13 during fiscal years 2001 through 2003, under terms

14 consistent with this section.’’.

15 (2) CONFORMING AMENDMENT.—The chapter

16 analysis for chapter 471 is amended by inserting

17 after the item relating to section 47138 the following:

‘‘47139. Emission credits for air quality projects.’’.

18 (e) AIRPORT GROUND SUPPORT EQUIPMENT EMIS19 SIONS RETROFIT PILOT PROGRAM.—

20 (1) IN GENERAL.—Subchapter I of chapter 471

21 is further amended by adding at the end the fol22 lowing:
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1 ‘‘§ 47140. Airport ground support equipment emissions

2 retrofit pilot program

3 ‘‘(a) IN GENERAL.—The Secretary of Transportation

4 shall carry out a pilot program at not more than 10 com5 mercial service airports under which the sponsors of such

6 airports may use an amount subject to apportionment to

7 retrofit existing eligible airport ground support equipment

8 which burns conventional fuels to achieve lower emissions

9 utilizing emission control technologies certified or verified

10 by the Environmental Protection Agency.

11 ‘‘(b) LOCATION IN AIR QUALITY NONATTAINMENT OR

12 MAINTENANCE AREAS.—A commercial service airport shall

13 be eligible for participation in the pilot program only if

14 the airport is located in an air quality nonattainment or

15 maintenance area (as defined in sections 171(2) and 175(A)

16 of the Clean Air Act (42 U.S.C. 7501(2), 7505a)).

17 ‘‘(c) SELECTION CRITERIA.—In selecting applicants

18 for participation in the pilot program, the Secretary shall

19 give priority consideration to applicants that will achieve

20 the greatest air quality benefits measured by the amount

21 of emissions reduced per dollar of funds expended under the

22 pilot program.

23 ‘‘(d) MAXIMUM AMOUNT.—Not more than $500,000

24 may be expended under the pilot program at any single

25 commercial service airport.
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1 ‘‘(e) GUIDELINES.—The Secretary, in consultation

2 with the Administrator of the Environmental Protection

3 Agency, shall establish guidelines regarding the types of ret4 rofit projects eligible under this pilot program by consid5 ering remaining equipment useful life, amounts of emission

6 reduction in relation to the cost of projects, and other fac7 tors necessary to carry out this section. The Secretary may

8 give priority to ground support equipment owned by the

9 airport and used for airport purposes.

10 ‘‘(f) ELIGIBLE EQUIPMENT DEFINED.—For purposes

11 of this section, the term ‘eligible equipment’ means ground

12 service or maintenance equipment that—

13 ‘‘(1) is located at the airport;

14 ‘‘(2) used to support aeronautical and related ac15 tivities on the airport; and

16 ‘‘(3) will remain in operation at the airport.’’.

17 (2) CONFORMING AMENDMENT.—The chapter

18 analysis for chapter 471 is further amended by insert19 ing after the item relating to section 47139 the fol20 lowing:

‘‘47140. Airport ground support equipment emissions retrofit pilot program.’’.

21 SEC. 509. LOW-EMISSION AIRPORT VEHICLES AND GROUND

22 SUPPORT EQUIPMENT.

23 Section 40117(a)(3) is amended by inserting at the

24 end the following:
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1 ‘‘(G) A project for the acquisition or conver2 sion of ground support equipment or airport3 owned vehicles used at a commercial service air4 port with, or to, low-emission technology or

5 cleaner burning conventional fuels, or the retro6 fitting of such equipment or vehicles that are

7 powered by a diesel or gasoline engine with

8 emission control technologies certified or verified

9 by the Environmental Protection Agency to re10 duce emissions, if the airport is located in an air

11 quality nonattainment or maintenance area (as

12 defined in sections 171(2) and 175(A) of the

13 Clean Air Act (42 U.S.C. 7501(2), 7505a), and

14 if such project will result in an airport receiving

15 appropriate emission credits as described in sec16 tion 47139 of this title. The Secretary, in con17 sultation with the Administrator of the Environ18 mental Protection Agency, shall issue guidance

19 for eligible projects and for how benefits must be

20 demonstrated. The eligible cost is limited to the

21 incremental amount that exceeds the cost of ac22 quiring other vehicles or equipment that are not

23 low-emission and would be used for the same

24 purpose, or to the cost of low-emission retro25 fitting. For purposes of this paragraph, the term
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1 ‘‘ground support equipment’’ means service and

2 maintenance equipment used at an airport to

3 support aeronautical operations and related ac4 tivities.’’.

5 SEC. 510. PACIFIC EMERGENCY DIVERSION AIRPORT.

6 (a) IN GENERAL.—The Secretary of Transportation

7 shall enter into a memorandum of understanding with the

8 Secretaries of Defense, the Interior, and Homeland Security

9 to facilitate the sale of aircraft fuel on Midway Island, so

10 that the revenue from the fuel sales can be used to operate

11 Midway Island Airport in accordance with Federal Avia12 tion Administration airport standards. The memorandum

13 shall also address the long term potential for promoting

14 tourism as a means of generating revenue to operate the

15 airport.

16 (b) NAVIGATIONAL AIDS.—The Administrator of the

17 Federal Aviation Administration may support and be re18 sponsible for maintaining all aviation-related navigational

19 aids at Midway Island Airport.

20 SEC. 511. GULF OF MEXICO AVIATION SERVICE IMPROVE21 MENTS.

22 (a) IN GENERAL.—The Secretary of Transportation

23 may develop and carry out a program designed to expand

24 and improve the safety, efficiency, and security of—
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1 (1) air traffic control services provided to avia2 tion in the Gulf of Mexico area; and

3 (2) aviation-related navigational, low altitude

4 communications and surveillance, and weather serv5 ices in that area.

6 (b) AUTHORIZATION OF APPROPRIATIONS.—There are

7 authorized to be appropriated to the Secretary of Transpor8 tation such sums as may be necessary to carry out this sec9 tion for the 4 fiscal year period beginning with fiscal year

10 2004.

11 SEC. 512. AIR TRAFFIC CONTROL COLLEGIATE TRAINING

12 INITIATIVE.

13 The Secretary of Transportation may use, from funds

14 available to the Secretary and not otherwise obligated or

15 expended, such sums as may be necessary to carry out and

16 expand the Air Traffic Control Collegiate Training Initia17 tive.

18 SEC. 513. AIR TRANSPORTATION OVERSIGHT SYSTEM PLAN.

19 (a) IN GENERAL.—Within 90 days after the date of

20 enactment of this Act, the Administrator of the Federal

21 Aviation Administration shall transmit to the Senate Com22 mittee on Commerce, Science, and Transportation and the

23 House of Representatives Committee on Transportation and

24 Infrastructure an action plan, with an implementation

25 schedule—
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1 (1) to provide adequate oversight of repair sta2 tions (known as Part 145 repair stations) and ensure

3 that Administration-approved repair stations outside

4 the United States are subject to the same level of over5 sight and quality control as those located in the

6 United States; and

7 (2) for addressing problems with the Air Trans8 portation Oversight System that have been identified

9 in reports by the Comptroller General and the Inspec10 tor General of the Department of Transportation.

11 (b) PLAN REQUIREMENTS.—The plan transmitted by

12 the Administrator under subsection (a)(2) shall set forth the

13 action the Administration will take under the plan—

14 (1) to develop specific, clear, and meaningful in15 spection checklists for the use of Administration avia16 tion safety inspectors and analysts;

17 (2) to provide adequate training to Administra18 tion aviation safety inspectors in system safety con19 cepts, risk analysis, and auditing;

20 (3) to ensure that aviation safety inspectors with

21 the necessary qualifications and experience are phys22 ically located where they can satisfy the most impor23 tant needs;

24 (4) to establish strong national leadership for the

25 Air Transportation Oversight System and to ensure
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1 that the System is implemented consistently across

2 Administration field offices; and

3 (5) to extend the Air Transportation Oversight

4 System beyond the 10 largest air carriers, so it gov5 erns oversight of smaller air carriers as well.

6 SEC. 514. NATIONAL SMALL COMMUNITY AIR SERVICE DE7 VELOPMENT OMBUDSMAN.

8 (a) IN GENERAL.—Subchapter II of chapter 417, as

9 amended by section 353 of this Act, is amended by adding

10 at the end the following:

11 ‘‘§ 41746. National Small Community Air Service De12 velopment Ombudsman

13 ‘‘(a) ESTABLISHMENT.—There is established in the De14 partment of Transportation the position of National Small

15 Community Air Service Ombudsman (in this section re16 ferred to as the ‘Ombudsman’). The Secretary of Transpor17 tation shall appoint the Ombudsman. The Ombudsman

18 shall report to the Secretary.

19 ‘‘(b) PURPOSE.—The Ombudsman, in consultation

20 with officials from small communities in the United States,

21 State aviation agencies, and State and local economic devel22 opment agencies, shall develop strategies for retaining and

23 enhancing the air service provided to small communities

24 in the United States.
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1 ‘‘(c) OUTREACH.—The Ombudsman shall solicit and

2 receive comments from small communities regarding strate3 gies for retaining and enhancing air service, and shall act

4 as a liaison between the communities and Federal agencies

5 for the purpose of developing such strategies.’’

6 (b) CONFORMING AMENDMENT.—The chapter analysis

7 for chapter 417 is amended by inserting after the item relat8 ing to section 47145 the following:

‘‘47146. National small community air service development ombudsman.’’.

9 SEC. 515. NATIONAL COMMISSION ON SMALL COMMUNITY

10 AIR SERVICE.

11 (a) ESTABLISHMENT.—There is established a commis12 sion to be known as the ‘‘National Commission on Small

13 Community Air Service’’ (in this section referred to as the

14 ‘‘Commission’’).

15 (b) MEMBERSHIP.—

16 (1) COMPOSITION.—The Commission shall be

17 composed of 9 members of whom—

18 (A) 3 members shall be appointed by the

19 Secretary;

20 (B) 2 members shall be appointed by the

21 Majority Leader of the Senate;

22 (C) 1 member shall be appointed by the Mi23 nority Leader of the Senate;

24 (D) 2 members shall be appointed by the

25 Speaker of the House of Representatives; and
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1 (E) 1 member shall be appointed by the Mi2 nority Leader of the House of Representatives.

3 (2) QUALIFICATIONS.—Of the members ap4 pointed by the Secretary under paragraph (1)(A)—

5 (A) 1 member shall be a representative of a

6 regional airline;

7 (B) 1 member shall be a representative of

8 an FAA-designated small-hub airport; and

9 (C) 1 member shall be a representative of a

10 State aviation agency.

11 (3) TERMS.—Members shall be appointed for the

12 life of the Commission.

13 (4) VACANCIES.—A vacancy in the Commission

14 shall be filled in the manner in which the original

15 appointment was made.

16 (5) TRAVEL EXPENSES.—Members shall serve

17 without pay but shall receive travel expenses, includ18 ing per diem in lieu of subsistence, in accordance

19 with subchapter I of chapter 57 of title 5, United

20 States Code.

21 (c) CHAIRPERSON.—The Secretary shall designate,

22 from among the individuals appointed under subsection

23 (b)(1), an individual to serve as Chairperson of the Com24 mission.

25 (d) DUTIES.—
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1 (1) STUDY.—The Commission shall undertake a

2 study of—

3 (A) the challenges faced by small commu4 nities in the United States with respect to re5 taining and enhancing their scheduled commer6 cial air service; and

7 (B) whether the existing Federal programs

8 charged with helping small communities are ade9 quate for them to retain and enhance their exist10 ing air service.

11 (2) ESSENTIAL AIR SERVICE COMMUNITIES.—In

12 conducting the study, the Commission shall pay par13 ticular attention to the state of scheduled commercial

14 air service in communities currently served by the

15 Essential Air Service program.

16 (e) RECOMMENDATIONS.—Based on the results of the

17 study under subsection (d), the Commission shall make such

18 recommendations as it considers necessary to—

19 (1) improve the state of scheduled commercial air

20 service at small communities in the United States, es21 pecially communities described in subsection (d)(2);

22 and

23 (2) improve the ability of small communities to

24 retain and enhance their existing air service.
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1 (f) REPORT.—Not later than 6 months after the date

2 on which initial appointments of members to the Commis3 sion are completed, the Commission shall transmit to the

4 President and Congress a report on the activities of the

5 Commission, including recommendations made by the Com6 mission under subsection (e).

7 (g) COMMISSION PANELS.—The Chairperson shall es8 tablish such panels consisting of members of the Commis9 sion as the Chairperson determines appropriate to carry

10 out the functions of the Commission.

11 (h) COMMISSION PERSONNEL MATTERS.—

12 (1) STAFF.—The Commission may appoint and

13 fix the pay of such personnel as it considers appro14 priate.

15 (2) STAFF OF FEDERAL AGENCIES.—Upon re16 quest of the Chairperson, the head of any department

17 or agency of the United States may detail, on a reim18 bursable basis, any of the personnel of that depart19 ment or agency to the Commission to assist it in car20 rying out its duties under this section.

21 (3) OTHER STAFF AND SUPPORT.—Upon the re22 quest of the Commission, or a panel of the Commis23 sion, the Secretary shall provide the Commission or

24 panel with professional and administrative staff and

25 other support, on a reimbursable basis, to assist the
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1 Commission or panel in carrying out its responsibil2 ities.

3 (i) OBTAINING OFFICIAL DATA.—The Commission

4 may secure directly from any department or agency of the

5 United States information (other than information required

6 by any statute of the United States to be kept confidential

7 by such department or agency) necessary for the Commis8 sion to carry out its duties under this section. Upon request

9 of the Chairperson, the head of that department or agency

10 shall furnish such nonconfidential information to the Com11 mission.

12 (j) TERMINATION.—The Commission shall terminate

13 on the 30th day following the date of transmittal of the re14 port under subsection (f).

15 (k) APPLICABILITY OF THE FEDERAL ADVISORY COM16 MITTEE ACT.—The Federal Advisory Committee Act (5

17 U.S.C. App.) shall not apply to the Commission.

18 (l) AUTHORIZATION OF APPROPRIATIONS.—There are

19 authorized to be appropriated to the Secretary of Transpor20 tation $250,000 to be used to fund the Commission.

21 SEC. 516. TRAINING CERTIFICATION FOR CABIN CREW.

22 Section 44935 is amended by adding at the end the

23 following:

24 ‘‘(g) TRAINING STANDARDS FOR CABIN CREW.—
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1 ‘‘(1) IN GENERAL.—The Administrator shall es2 tablish standards for cabin crew training, consistent

3 with the Homeland Security Act of 2002, and the

4 issuance of certification. The Administrator shall re5 quire cabin crew members to complete a cabin crew

6 training courses approved by the Federal Aviation

7 Administration and the Transportation Security Ad8 ministration.

9 ‘‘(2) CERTIFICATION.—

10 ‘‘(A) IN GENERAL.—The Administrator

11 shall provide for the issuance of an appropriate

12 certificate to each individual who successfully

13 completes such a course.

14 ‘‘(B) CONTENTS.—The cabin crew certifi15 cate shall—

16 ‘‘(i) be numbered and recorded by the

17 Administrator of the Federal Aviation Ad18 ministration;

19 ‘‘(ii) contain the name, address, and

20 description of the individual to whom the

21 certificate is issued; and

22 ‘‘(iii) contain the name of the current

23 air carrier employer of the certificate hold24 er;
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1 ‘‘(iv) contain terms the Administrator

2 determines are necessary to ensure safety in

3 air commerce, including terms that the cer4 tificate shall remain valid unless the Ad5 ministrator suspends or revokes the certifi6 cate; and

7 ‘‘(v) designate the type and model of

8 aircraft on which the certificate holder

9 cabin crew member has successfully com10 pleted all Federal Aviation Administration

11 and Transportation Security Administra12 tion required training in order to be as13 signed duties on board such type and model

14 of aircraft.

15 ‘‘(3) CABIN CREW DEFINED.—In this subsection,

16 the term ‘cabin crew’ means individuals working in

17 an aircraft cabin on board a transport category air18 craft with 20 or more seats.’’.

19 SEC. 517. AIRCRAFT MANUFACTURER INSURANCE.

20 (a) IN GENERAL.—Section 44302(f) is amended by

21 adding at the end the following:

22 ‘‘(3) AIRCRAFT MANUFACTURERS.—The Sec23 retary may offer to provide war and terrorism insur24 ance to aircraft manufacturers for loss or damage

25 arising from the operation of an aircraft by an air
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1 carrier, in excess of $50,000,000 in the aggregate or

2 in excess of such other amounts of available primary

3 insurance, on such terms and conditions as the Sec4 retary may prescribe.’’.

5 (b) CONFORMING AMENDMENTS.—

6 (1) DEFINITION OF AIRCRAFT MANUFACTURER.—

7 Section 44301 is amended by adding at the end the

8 following:

9 ‘‘(3) ‘aircraft manufacturer’ means any com10 pany or other business entity the majority ownership

11 and control of which is by United States citizens that

12 manufactures aircraft or aircraft engines.’’.

13 (2) COVERAGE.—Section 44303(a) is amended

14 by adding at the end the following:

15 ‘‘(6) war and terrorism losses or damages of an

16 aircraft manufacturer arising from the operation of

17 an aircraft by an air carrier.’’.

18 SEC. 518. GROUND-BASED PRECISION NAVIGATIONAL AIDS.

19 (a) IN GENERAL.—The Secretary of Transportation

20 may establish a program for the installation, operation,

21 and maintenance of ground-based precision navigational

22 aids for terrain-challenged airports. The program shall in23 clude provision for—

24 (1) preventative and corrective maintenance for

25 the life of each system of such aids; and
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1 (2) requisite staffing and resources for the Fed2 eral Aviation Administration’s efficient maintenance

3 of the program.

4 (b) AUTHORIZATION OF APPROPRIATIONS.—There are

5 authorized to be appropriated to the Secretary of Transpor6 tation to carry out the program established under sub7 section (a) such sums as may be necessary.

8 SEC. 519. STANDBY POWER EFFICIENCY PROGRAM.

9 (a) ESTABLISHMENT.—The Secretary of Transpor10 tation, in cooperation with the Secretary of Energy and,

11 where applicable, the Secretary of Defense, may establish

12 a program to improve the efficiency, cost-effectiveness, and

13 environmental performance of standby power systems at

14 Federal Aviation Administration sites, including the imple15 mentation of fuel cell technology.

16 (b) AUTHORIZATION OF APPROPRIATIONS.—There are

17 authorized to be appropriated to the Secretary of Transpor18 tation such sums as may be necessary for each of fiscal

19 years 2004 through 2008 to carry out the provisions of this

20 section.

21 SEC. 520. CERTAIN INTERIM AND FINAL RULES.

22 Notwithstanding section 141(d)(1) of the Aviation and

23 Transportation Security Act (49 U.S.C. 44901 note), sec24 tion 45301(b)(1)(B) of title 49, United States Code, as

25 amended by section 119(d) of that Act, is deemed to apply
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1 to, and to have been in effect with respect to, the authority

2 of the Administrator of the Federal Aviation Administra3 tion with respect to the Interim Final Rule and Final Rule

4 issued by the Administrator on May 30, 2000, and August

5 13, 2001, respectively.

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

7 It is the sense of the Senate that each United States

8 air carrier should—

9 (1) make every effort to allow active duty mem10 bers of the Armed Forces to purchase tickets, on a

11 space-available basis, for the lowest fares offered for

12 the flights desired, without regard to advance pur13 chase requirements and other restrictions; and

14 (2) offer flexible terms that allow members of the

15 Armed Forces on active duty to purchase, modify, or

16 cancel tickets without time restrictions, fees, or pen17 alties.

18 SEC. 522. MODIFICATION OF REQUIREMENTS REGARDING

19 TRAINING TO OPERATE AIRCRAFT.

20 (a) IN GENERAL.—Section 44939 of title 49, United

21 States Code, is amended to read as follows:

22 ‘‘§ 44939. Training to operate certain aircraft

23 ‘‘(a) IN GENERAL.—

24 ‘‘(1) WAITING PERIOD.—A person subject to reg25 ulation under this part may provide training in the
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1 United States in the operation of an aircraft to an

2 individual who is an alien (as defined in section

3 101(a)(3) of the Immigration and Nationality Act (8

4 U.S.C. 1101(a)(3))) or to any other individual speci5 fied by the Under Secretary of Homeland Security for

6 Border and Transportation Security only if—

7 ‘‘(A) that person has notified the Under

8 Secretary that the individual has requested such

9 training and furnished the Under Secretary with

10 that individual’s identification in such form as

11 the Under Secretary may require; and

12 ‘‘(B) the Under Secretary has not directed,

13 within 30 days after being notified under sub14 paragraph (A), that person not to provide the re15 quested training because the Under Secretary has

16 determined that the individual presents a risk to

17 aviation security or national security.

18 ‘‘(2) NOTIFICATION-ONLY INDIVIDUALS.—

19 ‘‘(A) IN GENERAL.—The requirements of

20 paragraph (1) shall not apply to an alien indi21 vidual who holds a visa issued under title I of

22 the Immigration and Nationality Act (8 U.S.C.

23 1101 et seq.) and who—
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1 ‘‘(i) has earned a Federal Aviation Ad2 ministration type rating in an aircraft or

3 has undergone type-specific training, or

4 ‘‘(ii) holds a current pilot’s license or

5 foreign equivalent commercial pilot’s license

6 that permits the person to fly an aircraft

7 with a maximum certificated takeoff weight

8 of more than 12,500 pounds as defined by

9 the International Civil Aviation Organiza10 tion in Annex 1 to the Convention on Inter11 national Civil Aviation,

12 if the person providing the training has notified

13 the Under Secretary that the individual has re14 quested such training and furnished the Under

15 Secretary with that individual’s visa informa16 tion.

17 ‘‘(B) EXCEPTION.—Subparagraph (A) does

18 not apply to an alien individual whose airman’s

19 certificate has been suspended or revoked under

20 procedures established by the Under Secretary.

21 ‘‘(3) EXPEDITED PROCESSING.—The waiting pe22 riod under paragraph (1) shall be expedited for an

23 individual who—
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1 ‘‘(A) has previously undergone a back2 ground records check by the Foreign Terrorist

3 Tracking Task Force;

4 ‘‘(B) is employed by a foreign air carrier

5 certified under part 129 of title 49, Code of Fed6 eral Regulations, that has a TSA 1546 approved

7 security program and who is undergoing recur8 rent flight training;

9 ‘‘(C) is a foreign military pilot endorsed by

10 the United States Department of Defense for

11 flight training; or

12 ‘‘(D) who has unescorted access to a secured

13 area of an airport designated under section

14 44936(a)(1)(A)(ii).

15 ‘‘(4) INVESTIGATION AUTHORITY.—In order to

16 determine whether an individual requesting training

17 described in paragraph (1) presents a risk to aviation

18 security or national security the Under Secretary is

19 authorized to use the employment investigation au20 thority provided by section 44936(a)(1)(A) for indi21 viduals applying for a position in which the indi22 vidual has unescorted access to a secured area of an

23 airport designated under section 44936(a)(1)(A)(ii).

24 ‘‘(5) FEE.—
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1 ‘‘(A) IN GENERAL.—The Under Secretary

2 may assess a fee for an investigation under this

3 section, which may not exceed $100 per indi4 vidual (exclusive of the cost of transmitting fin5 gerprints collected at overseas facilities) during

6 fiscal years 2003 and 2004. For fiscal year 2005

7 and thereafter, the Under Secretary may adjust

8 the maximum amount of the fee to reflect the

9 costs of such an investigation.

10 ‘‘(B) OFFSET.—Notwithstanding section

11 3302 of title 31, United States Code, any fee col12 lected under this section—

13 ‘‘(i) shall be credited to the account in

14 the Treasury from which the expenses were

15 incurred and shall be available to the Under

16 Secretary for those expenses; and

17 ‘‘(ii) shall remain available until ex18 pended.

19 ‘‘(b) INTERRUPTION OF TRAINING.—If the Under Sec20 retary, more than 30 days after receiving notification under

21 subsection (a)(1)(A) from a person providing training de22 scribed in subsection (a)(1) or at any time after receiving

23 notice from such a person under subsection (a)(2)(A), deter24 mines that an individual receiving such training presents

25 a risk to aviation or national security, the Under Secretary
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1 shall immediately notify the person providing the training

2 of the determination and that person shall immediately ter3 minate the training.

4 ‘‘(c) COVERED TRAINING.—For purposes of subsection

5 (a), the term ‘training’—

6 ‘‘(1) includes in-flight training, training in a

7 simulator, and any other form or aspect of training;

8 but

9 ‘‘(2) does not include classroom instruction (also

10 known as ground school training), which may be pro11 vided during the 30-day period described in sub12 section (a)(1)(B).

13 ‘‘(d) INTERAGENCY COOPERATION.—The Attorney

14 General, the Director of Central Intelligence, and the Ad15 ministrator of the Federal Aviation Administration shall

16 cooperate with the Under Secretary in implementing this

17 section.

18 ‘‘(e) SECURITY AWARENESS TRAINING FOR EMPLOY19 EES.—The Under Secretary shall require flight schools to

20 conduct a security awareness program for flight school em21 ployees, and for certified instructors who provide instruc22 tion for the flight school but who are not employees thereof,

23 to increase their awareness of suspicious circumstances and

24 activities of individuals enrolling in or attending flight

25 school.’’.
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1 (b) PROCEDURES.—

2 (1) IN GENERAL.—Not later than 60 days after

3 the date of enactment of this Act, the Under Secretary

4 of Homeland Security for Border and Transportation

5 Security shall promulgate an interim final rule to

6 implement section 44939 of title 49, United States

7 Code, as amended by subsection (a).

8 (2) USE OF OVERSEAS FACILITIES.—In order to

9 implement section 44939 of title 49, United States

10 Code, as amended by subsection (a), United States

11 Embassies and Consulates that possess appropriate

12 fingerprint collection equipment and personnel cer13 tified to capture fingerprints shall provide fingerprint

14 services to aliens covered by that section if the Under

15 Secretary requires fingerprints in the administration

16 of that section, and shall transmit the fingerprints to

17 the Under Secretary or other agency designated by the

18 Under Secretary. The Attorney General and the Sec19 retary of State shall cooperate with the Under Sec20 retary in carrying out this paragraph.

21 (3) USE OF UNITED STATES FACILITIES.—If the

22 Under Secretary requires fingerprinting in the ad23 ministration of section 44939 of title 49, United

24 States Code, the Under Secretary may designate loca25 tions within the United States that will provide
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1 fingerprinting services to individuals covered by that

2 section.

3 (c) EFFECTIVE DATE.—The amendment made by sub4 section (a) takes effect on the effective date of the interim

5 final rule required by subsection (b)(1).

6 (d) REPORT.—Not later than 1 year after the date of

7 enactment of this Act, the Secretary of Homeland Security

8 shall submit to the Senate Committee on Commerce,

9 Science, and Transportation and the House of Representa10 tives Committee on Transportation and Infrastructure a re11 port on the effectiveness of the activities carried out under

12 section 44939 of title 49, United States Code, in reducing

13 risks to aviation security and national security.

14 SEC. 523. EXEMPTION FOR JACKSON HOLE AIRPORT.

15 (a) IN GENERAL.—Notwithstanding chapter 475 of

16 title 49, United States Code, or any other provision of law,

17 if the Board of the Jackson Hole Airport in Wyoming and

18 the Secretary of the Interior agree that Stage 3 aircraft

19 technology represents a prudent and feasible technological

20 advance which, if implemented at the Jackson Hole Airport,

21 will result in a reduction in noise at Grand Teton National

22 Park—

23 (1) the Jackson Hole Airport may impose re24 strictions on, or prohibit, the operation of Stage 2
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1 aircraft weighing less than 75,000 pounds, with rea2 sonable exemptions for public health and safety;

3 (2) the notice, study, and comment provisions of

4 subchapter II of chapter 475 of title 49, United States

5 Code, and part 161 of title 14, Code of Federal Regu6 lations, shall not apply to the imposition of the re7 strictions;

8 (3) the imposition of the restrictions shall not af9 fect the Airport’s eligibility to receive a grant under

10 title 49, United States Code; and

11 (4) the restrictions shall not be deemed to be un12 reasonable, discriminatory, a violation of the assur13 ances required by section 47107(a) of title 49, United

14 States Code, or an undue burden on interstate com15 merce.

16 (b) DEFINITIONS.—In this section, the terms ‘‘Stage

17 2 aircraft’’ and ‘‘Stage 3 aircraft’’ have the same meaning

18 as those terms have in chapter 475 of title 49, United States

19 Code.

20 SEC. 524. DISTANCE REQUIREMENT APPLICABLE TO ELIGI21 BILITY FOR ESSENTIAL AIR SERVICE SUB22 SIDIES.

23 (a) MEASUREMENT OF HIGHWAY MILEAGE FOR PUR24 POSES OF DETERMINING ELIGIBILITY FOR ESSENTIAL AIR

25 SERVICE SUBSIDIES.—
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1 (1) DETERMINATION OF ELIGIBILITY.—Sub2 chapter II of Chapter 417 of title 49, United States

3 Code, is amended by adding at the end the following

4 new section:

5 ‘‘§ 41746. Distance requirement applicable to eligi6 bility for essential air service subsidies

7 ‘‘(a) IN GENERAL.—The Secretary shall not provide

8 assistance under this subchapter with respect to a place in

9 the 48 contiguous States that—

10 ‘‘(1) is less than 70 highway miles from the

11 nearest hub airport; or

12 ‘‘(2) requires a rate of subsidy per passenger in

13 excess of $200, unless such place is greater than 210

14 highway miles from the nearest hub airport.

15 ‘‘(b) DETERMINATION OF MILEAGE.—For purposes of

16 Lancaster, Pennsylvania, the highway mileage between a

17 place and the nearest hub airport is the highway mileage

18 of the most commonly used route between the place and the

19 hub airport. In identifying such route, the Secretary shall—

20 ‘‘(1) promulgate by regulation a standard for

21 calculating the mileage between Lancaster, Pennsyl22 vania and a hub airport; and

23 ‘‘(2) identify the most commonly used route for

24 a community by—
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1 ‘‘(A) consulting with the Governor of a

2 State or the Governor’s designee; and

3 ‘‘(B) considering the certification of the

4 Governor of a State or the Governor’s designee as

5 to the most commonly used route.’’.

6 (2) CONFORMING AMENDMENT.—The analysis for

7 subchapter II of chapter 417 of title 49, United States

8 Code, is amended by inserting after the item relating

9 to section 41745 the following new item:

‘‘41746. Distance requirement applicable to eligibility for essential air service

subsidies.’’.

10 (b) REPEAL.—The following provisions of law are re11 pealed:

12 (1) Section 332 of the Department of Transpor13 tation and Related Agencies Appropriations Act,

14 2000 (49 U.S.C. 41731 note).

15 (2) Section 205 of the Wendell H. Ford Aviation

16 Investment and Reform Act for the 21st Century (49

17 U.S.C. 41731 note).

18 (3) Section 334 of the Department of Transpor19 tation and Related Agencies Appropriations Act,

20 1999 (section 101(g) of division A of the Omnibus

21 Consolidated and Emergency Supplemental Appro22 priations Act, 1999) (Public Law 105–277; 112 Stat.

23 2681–471).

24 (c) SECRETARIAL REVIEW.—
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1 (1) REQUEST FOR REVIEW.—Any community

2 with respect to which the Secretary has, between Sep3 tember 30, 1993, and the date of the enactment of this

4 Act, eliminated subsidies or terminated subsidy eligi5 bility under section 332 of the Department of Trans6 portation and Related Agencies Appropriations Act,

7 2000 (49 U.S.C. 41731 note), section 205 of the Wen8 dell H. Ford Aviation Investment and Reform Act for

9 the 21st Century (49 U.S.C. 41731 note), or any

10 prior law of similar effect, may request the Secretary

11 to review such action.

12 (2) ELIGIBILITY DETERMINATION.—Not later

13 than 60 days after receiving a request under sub14 section (i), the Secretary shall—

15 (A) determine whether the community

16 would have been subject to such elimination of

17 subsidies or termination of eligibility under the

18 distance requirement enacted by the amendment

19 made by subsection (g) of this bill to subchapter

20 II of chapter 417 of title 49, United States Code;

21 and

22 (B) issue a final order with respect to the

23 eligibility of such community for essential air

24 service subsidies under subchapter II of chapter
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1 417 of title 49, United States Code, as amended

2 by this Act.

3 SEC. 525. REIMBURSEMENT FOR LOSSES INCURRED BY

4 GENERAL AVIATION ENTITIES.

5 (a) IN GENERAL.—The Secretary of Transportation

6 may make grants to reimburse the following general avia7 tion entities for economic losses as a result of the restrictions

8 imposed by the Federal Government following the terrorist

9 attacks on the United States that occurred on September

10 11, 2001:

11 (1) General aviation entities that operate at

12 Ronald Reagan Washington National Airport.

13 (2) Airports that are located within 15 miles of

14 Ronald Reagan Washington National Airport and

15 were operating under security restrictions on the date

16 of enactment of this Act and general aviation entities

17 operating at those airports.

18 (3) Any other general aviation entity that is pre19 vented from doing business or operating by an action

20 of the Federal Government prohibiting access to air21 space by that entity.

22 (b) DOCUMENTATION.—Reimbursement under this sec23 tion shall be made in accordance with sworn financial

24 statements or other appropriate data submitted by each
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1 general aviation entity demonstrating the costs incurred

2 and revenue foregone to the satisfaction of the Secretary.

3 (c) GENERAL AVIATION ENTITY DEFINED.—In this

4 section, the term ‘‘general aviation entity’’ means any per5 son (other than a scheduled air carrier or foreign air car6 rier, as such terms are defined in section 40102 of title 49,

7 United States Code) that—

8 (1) operates nonmilitary aircraft under part 91

9 of title 14, Code of Federal Regulations, for the pur10 pose of conducting its primary business;

11 (2) provides services necessary for nonmilitary

12 operations under such part 91; or

13 (3) operates an airport, other than a primary

14 airport (as such terms are defined in such section

15 40102), that—

16 (A) is listed in the national plan of inte17 grated airport systems developed by the Federal

18 Aviation Administration under section 47103 of

19 such title; or

20 (B) is normally open to the public, is lo21 cated within the confines of enhanced class B

22 airspace (as defined by the Federal Aviation Ad23 ministration in Notice to Airmen FDC 1/0618),

24 and was closed as a result of an order issued by

25 the Federal Aviation Administration in the pe-
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1 riod beginning September 11, 2001, and ending

2 January 1, 2002, and remained closed as a re3 sult of that order on January 1, 2002.

4 Such term includes fixed based operators, persons engaged

5 in nonscheduled air taxi service or aircraft rental.

6 (d) AUTHORIZATION OF APPROPRIATIONS.—There is

7 authorized to be appropriated to carry out this section

8 $100,000,000. Such sums shall remain available until ex9 pended.

10 SEC. 526. RECOMMENDATIONS CONCERNING TRAVEL

11 AGENTS.

12 (a) REPORT.—Not later than 6 months after the date

13 of enactment of this Act, the Secretary of Transportation

14 shall transmit to Congress a report on any actions that

15 should be taken with respect to recommendations made by

16 the National Commission to Ensure Consumer Information

17 and Choice in the Airline Industry on—

18 (1) the travel agent arbiter program; and

19 (2) the special box on tickets for agents to in20 clude their service fee charges.

21 (b) CONSULTATION.—In preparing this report, the

22 Secretary shall consult with representatives from the airline

23 and travel agent industry.
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1 SEC. 527. PASS-THROUGH OF REFUNDED PASSENGER SECU2 RITY FEES TO CODE-SHARE PARTNERS.

3 (a) IN GENERAL.—Within 30 days after the date of

4 enactment of this Act, each United States flag air carrier

5 that received a payment made under the second proviso of

6 first appropriation in title IV of the Emergency Wartime

7 Supplemental Appropriations Act, 2003 (Pub. L. 108–011;

8 117 Stat. 604) shall transfer to each air carrier with which

9 it had a code-share arrangement during the period covered

10 by the passenger security fees remitted under that proviso

11 an amount equal to that portion of the remittance under

12 the proviso that was attributable to passenger security fees

13 paid or collected by that code-share air carrier and taken

14 into account in determining the amount of the payment to

15 the United States flag air carrier.

16 (b) DOT INSPECTOR GENERAL OVERSIGHT.—The In17 spector General of the Department of Transportation shall

18 review the compliance of United States flag air carriers

19 with subsection (a), including determinations of amounts,

20 determinations of eligibility of code-share air carriers, and

21 transfers of funds to such air carriers under subsection (a).

22 (c) CERTIFICATION.—The chief executive officer of each

23 United States flag air carrier to which subsection (a) ap24 plies shall certify to the Under Secretary of Homeland Se25 curity for Border and Transportation Security, under pen-
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1 alty of perjury, the air carrier’s compliance with subsection

2 (a).

3 SEC. 528. AIR CARRIER CITIZENSHIP.

4 Section 40102(a)(15)(C) of title 49, United States

5 Code, is amended by inserting ‘‘which is under the actual

6 control of citizens of the United States,’’ before ‘‘and in

7 which’’.

8 SEC. 529. UNITED STATES PRESENCE IN GLOBAL AIR

9 CARGO INDUSTRY.

10 Section 41703 is amended by adding at the end the

11 following new subsection:

12 ‘‘(e) CARGO IN ALASKA.—

13 ‘‘(1) IN GENERAL.—For the purposes of sub14 section (c), eligible cargo taken on or off any aircraft

15 at a place in Alaska in the course of transportation

16 of that cargo by any combination of 2 or more air

17 carriers or foreign air carriers in either direction be18 tween a place in the United States and a place out19 side the United States shall not be deemed to have

20 broken its international journey in, be taken on in,

21 or be destined for Alaska.

22 ‘‘(2) ELIGIBLE CARGO.—For purposes of para23 graph (1), the term ‘eligible cargo’ means cargo trans24 ported between Alaska and any other place in the

25 United States on a foreign air carrier (having been
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1 transported from, or thereafter being transported to,

2 a place outside the United States on a different air

3 carrier or foreign air carrier) that is carried—

4 ‘‘(A) under the code of a United States air

5 carrier providing air transportation to Alaska;

6 ‘‘(B) on an air carrier way bill of an air

7 carrier providing air transportation to Alaska;

8 ‘‘(C) under a term arrangement or block

9 space agreement with an air carrier; or

10 ‘‘(D) under the code of a United States air

11 carrier for purposes of transportation within the

12 United States.’’.

13 TITLE VI—SECOND CENTURY OF

14 FLIGHT

15 SEC. 601. FINDINGS.

16 The Congress finds the following:

17 (1) Since 1990, the United States has lost more

18 than 600,000 aerospace jobs.

19 (2) Over the last year, approximately 100,000

20 airline workers and aerospace workers have lost their

21 jobs as a result of the terrorist attacks in the United

22 States on September 11, 2001, and the slowdown in

23 the world economy.
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1 (3) The United States has revolutionized the way

2 people travel, developing new technologies and air3 craft to move people more efficiently and more safely.

4 (4) Past Federal investment in aeronautics re5 search and development have benefited the economy

6 and national security of the United States and the

7 quality of life of its citizens.

8 (5) The total impact of civil aviation on the

9 United States economy exceeds $900,000,000,000 an10 nually—9 percent of the gross national product—and

11 11 million jobs in the national workforce. Civil avia12 tion products and services generate a significant sur13 plus for United States trade accounts, and amount to

14 significant numbers of America’s highly skilled, tech15 nologically qualified work force.

16 (6) Aerospace technologies, products and services

17 underpin the advanced capabilities of our men and

18 women in uniform and those charged with homeland

19 security.

20 (7) Future growth in civil aviation increasingly

21 will be constrained by concerns related to aviation

22 system safety and security, aviation system capabili23 ties, aircraft noise, emissions, and fuel consumption.

24 (8) The United States is in danger of losing its

25 aerospace leadership to international competitors
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1 aided by persistent government intervention. Many

2 governments take their funding beyond basic tech3 nology development, choosing to fund product develop4 ment and often bring the product to market, even if

5 the products are not fully commercially viable. More6 over, international competitors have recognized the

7 importance of noise, emission, fuel consumption, and

8 constraints of the aviation system and have estab9 lished aggressive agendas for addressing each of these

10 concerns.

11 (9) Efforts by the European Union, through a

12 variety of means, will challenge the United States’

13 leadership position in aerospace. A recent report out14 lined the European Union’s goal of becoming the

15 world’s leader in aviation and aeronautics by the end

16 of 2020, utilizing better coordination among research

17 programs, planning, and funding to accomplish this

18 goal.

19 (10) Revitalization and coordination of the

20 United States’ efforts to maintain its leadership in

21 aviation and aeronautics are critical and must begin

22 now.

23 (11) A recent report by the Commission on the

24 Future of the United States Aerospace Industry out25 lined the scope of the problems confronting the aero-
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1 space and aviation industries in the United States

2 and found that—

3 (A) Aerospace will be at the core of Amer4 ica’s leadership and strength throughout the 21st

5 century;

6 (B) Aerospace will play an integral role in

7 our economy, our security, and our mobility;

8 and

9 (C) global leadership in aerospace is a na10 tional imperative.

11 (12) Despite the downturn in the global econ12 omy, Federal Aviation Administration projections in13 dicate that upwards of 1 billion people will fly annu14 ally by 2013. Efforts must begin now to prepare for

15 future growth in the number of airline passengers.

16 (13) The United States must increase its invest17 ment in research and development to revitalize the

18 aviation and aerospace industries, to create jobs, and

19 to provide educational assistance and training to pre20 pare workers in those industries for the future.

21 (14) Current and projected levels of Federal in22 vestment in aeronautics research and development are

23 not sufficient to address concerns related to the

24 growth of aviation.
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1 Subtitle A—The Office of Aerospace

2 and Aviation Liaison

3 SEC. 621. OFFICE OF AEROSPACE AND AVIATION LIAISON.

4 (a) ESTABLISHMENT.—There is established within the

5 Department of Transportation an Office of Aerospace and

6 Aviation Liaison.

7 (b) FUNCTION.—The Office shall—

8 (1) coordinate aviation and aeronautics research

9 programs to achieve the goal of more effective and di10 rected programs that will result in applicable re11 search;

12 (2) coordinate goals and priorities and coordi13 nate research activities within the Federal Govern14 ment with United States aviation and aeronautical

15 firms;

16 (3) coordinate the development and utilization of

17 new technologies to ensure that when available, they

18 may be used to their fullest potential in aircraft and

19 in the air traffic control system;

20 (4) facilitate the transfer of technology from re21 search programs such as the National Aeronautics

22 and Space Administration program established under

23 section 681 and the Department of Defense Advanced

24 Research Projects Agency program to Federal agencies
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1 with operational responsibilities and to the private

2 sector;

3 (5) review activities relating to noise, emissions,

4 fuel consumption, and safety conducted by Federal

5 agencies, including the Federal Aviation Administra6 tion, the National Aeronautics and Space Adminis7 tration, the Department of Commerce, and the De8 partment of Defense;

9 (6) review aircraft operating procedures intended

10 to reduce noise and emissions, identify and coordinate

11 research efforts on aircraft noise and emissions reduc12 tion, and ensure that aircraft noise and emissions re13 duction regulatory measures are coordinated; and

14 (7) work with the National Air Traffic Manage15 ment System Development Office to coordinate re16 search needs and applications for the next generation

17 air traffic management system.

18 (c) PUBLIC-PRIVATE PARTICIPATION.—In carrying

19 out its functions under this section, the Office shall consult

20 with, and ensure participation by, the private sector (in21 cluding representatives of general aviation, commercial

22 aviation, and the space industry), members of the public,

23 and other interested parties.

24 (d) REPORTING REQUIREMENTS.—
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1 (1) INITIAL STATUS REPORT.—Not later than 90

2 days after the date of enactment of this Act, the Sec3 retary of Transportation shall submit a report to the

4 Senate Committee on Commerce, Science, and Trans5 portation and the House of Representatives Com6 mittee on Transportation and Infrastructure on the

7 status of the establishment of the Office of Aerospace

8 and Aviation Liaison, including the name of the pro9 gram manager, the list of staff from each partici10 pating department or agency, names of the national

11 team participants, and the schedule for future ac12 tions.

13 (2) PLAN.—The Office shall submit to the Senate

14 Committee on Commerce, Science, and Transpor15 tation and the House of Representatives Committee

16 on Science a plan for implementing paragraphs (1)

17 and (2) of subsection (b) and a proposed budget for

18 implementing the plan.

19 (3) ANNUAL REPORT.—The Office shall submit to

20 the Senate Committee on Commerce, Science, and

21 Transportation, the House of Representatives Com22 mittee on Transportation and Infrastructure, and the

23 House of Representatives Committee on Science an

24 annual report that—
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1 (A) contains a unified budget that combines

2 the budgets of each program coordinated by the

3 Office; and

4 (B) describes the coordination activities of

5 the Office during the preceding year.

6 (e) AUTHORIZATION OF APPROPRIATIONS.—There are

7 authorized to be appropriated to the Secretary of Transpor8 tation $2,000,000 for fiscal years 2004 and 2005 to carry

9 out this section, such sums to remain available until ex10 pended.

11 SEC. 622. NATIONAL AIR TRAFFIC MANAGEMENT SYSTEM

12 DEVELOPMENT OFFICE.

13 (a) ESTABLISHMENT.—There is established within the

14 Federal Aviation Administration a National Air Traffic

15 Management System Development Office, the head of which

16 shall report directly to the Administrator.

17 (b) DEVELOPMENT OF NEXT GENERATION AIR TRAF18 FIC MANAGEMENT SYSTEM.—

19 (1) IN GENERAL.—The Office shall develop a

20 next generation air traffic management system plan

21 for the United States that will—

22 (A) transform the national airspace system

23 to meet air transportation mobility, efficiency,

24 and capacity needs beyond those currently in-
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1 cluded in the Federal Aviation Administration’s

2 operational evolution plan;

3 (B) result in a national airspace system

4 that can safely and efficiently accommodate the

5 needs of all users;

6 (C) build upon current air traffic manage7 ment and infrastructure initiatives;

8 (D) improve the security, safety, quality,

9 and affordability of aviation services;

10 (E) utilize a system-of-systems, multi-agen11 cy approach to leverage investments in civil

12 aviation, homeland security, and national secu13 rity;

14 (F) develop a highly integrated, secure ar15 chitecture to enable common situational aware16 ness for all appropriate system users; and

17 (G) ensure seamless global operations for

18 system users, to the maximum extent possible.

19 (2) MULTI-AGENCY AND STAKEHOLDER INVOLVE20 MENT.—In developing the system, the Office shall—

21 (A) include staff from the Federal Aviation

22 Administration, the National Aeronautics and

23 Space Administration, the Department of Home24 land Security, the Department of Defense, the

25 Department of Commerce, and other Federal
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1 agencies and departments determined by the Sec2 retary of Transportation to have an important

3 interest in, or responsibility for, other aspects of

4 the system; and

5 (B) consult with, and ensure participation

6 by, the private sector (including representatives

7 of general aviation, commercial aviation, and

8 the space industry), members of the public, and

9 other interested parties.

10 (3) DEVELOPMENT CRITERIA AND REQUIRE11 MENTS.—In developing the next generation air traffic

12 management system plan under paragraph (1), the

13 Office shall—

14 (A) develop system performance require15 ments;

16 (B) select an operational concept to meet

17 system performance requirements for all system

18 users;

19 (C) ensure integration of civil and military

20 system requirements, balancing safety, security,

21 and efficiency, in order to leverage Federal fund22 ing;

23 (D) utilize modeling, simulation, and ana24 lytical tools to quantify and validate system per25 formance and benefits;
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1 (E) develop a transition plan, including

2 necessary regulatory aspects, that ensures oper3 ational achievability for system operators;

4 (F) develop transition requirements for on5 going modernization programs, if necessary;

6 (G) develop a schedule for aircraft equip7 ment implementation and appropriate benefits

8 and incentives to make that schedule achievable;

9 and

10 (H) assess, as part of its function within

11 the Office of Aeronautical and Aviation Liaison,

12 the technical readiness of appropriate research

13 technological advances for integration of such re14 search and advances into the plan.

15 (c) AUTHORIZATION OF APPROPRIATIONS.—There are

16 authorized to be appropriated to the Administrator of the

17 Federal Aviation Administration $300,000,000 for the pe18 riod beginning with fiscal year 2004 and ending with fiscal

19 year 2010 to carry out this section.

20 SEC. 623. REPORT ON CERTAIN MARKET DEVELOPMENTS

21 AND GOVERNMENT POLICIES.

22 Within 6 months after the date of enactment of this

23 Act, the Department of Transportation’s Office of Aerospace

24 and Aviation liaison, in cooperation with appropriate Fed25 eral agencies, shall submit to the Senate Committee on
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1 Commerce, Science, and Transportation, the House of Rep2 resentatives Committee on Science, and the House of Rep3 resentatives Committee on Transportation and Infrastruc4 ture a report about market developments and government

5 policies influencing the competitiveness of the United States

6 jet transport aircraft industry that—

7 (1) describes the structural characteristics of the

8 United States and the European Union jet transport

9 industries, and the markets for these industries;

10 (2) examines the global market factors affecting

11 the jet transport industries in the United States and

12 the European Union, such as passenger and freight

13 airline purchasing patterns, the rise of low-cost car14 riers and point-to-point service, the evolution of new

15 market niches, and direct and indirect operating cost

16 trends;

17 (3) reviews government regulations in the United

18 States and the European Union that have altered the

19 competitive landscape for jet transport aircraft, such

20 as airline deregulation, certification and safety regu21 lations, noise and emissions regulations, government

22 research and development programs, advances in air

23 traffic control and other infrastructure issues, cor24 porate and air travel tax issues, and industry consoli25 dation strategies;
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1 (4) analyzes how changes in the global market

2 and government regulations have affected the competi3 tive position of the United States aerospace and avia4 tion industry vis-a`-vis the European Union aerospace

5 and aviation industry; and

6 (5) describes any other significant developments

7 that affect the market for jet transport aircraft.

8 SEC. 624. TRANSFER OF CERTAIN AIR TRAFFIC CONTROL

9 FUNCTIONS PROHIBITED.

10 (a) IN GENERAL.—The Secretary of Transportation

11 may not authorize the transfer to a private entity or to

12 a public entity other than the United States Government

13 of—

14 (1) the air traffic separation and control func15 tions operated by the Federal Aviation Administra16 tion on the date of enactment of this Act; or

17 (2) the maintenance of certifiable systems and

18 other functions related to certification of national air19 space systems and services operated by the Federal

20 Aviation Administration on the date of enactment of

21 this Act or flight service station personnel.

22 (b) CONTRACT TOWER PROGRAM.—Subsection (a)(1)

23 shall not apply to a Federal Aviation Administration air

24 traffic control tower operated under the contract tower pro25 gram as of the date of enactment of this Act.
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1 Subtitle B—Technical Programs

2 SEC. 641. AEROSPACE AND AVIATION SAFETY WORKFORCE

3 INITIATIVE.

4 (a) IN GENERAL.—The Administrator of the National

5 Aeronautics and Space Administration and the Adminis6 trator of the Federal Aviation Administration shall estab7 lish a joint program of competitive, merit-based grants for

8 eligible applicants to increase the number of students study9 ing toward and completing technical training programs,

10 certificate programs, and associate’s, bachelor’s, master’s, or

11 doctorate degrees in fields related to aerospace and aviation

12 safety.

13 (b) INCREASED PARTICIPATION GOAL.—In selecting

14 projects under this paragraph, the Director shall consider

15 means of increasing the number of students studying to16 ward and completing technical training and apprenticeship

17 programs, certificate programs, and associate’s or bachelor’s

18 degrees in fields related to aerospace and aviation safety

19 who are individuals identified in section 33 or 34 of the

20 Science and Engineering Equal Opportunities Act (42

21 U.S.C. 1885a or 1885b).

22 (c) SUPPORTABLE PROJECTS.—The types of projects

23 the Administrators may consider under this paragraph in24 clude those that promote high quality—

25 (1) interdisciplinary teaching;
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1 (2) undergraduate-conducted research;

2 (3) mentor relationships for students;

3 (4) graduate programs;

4 (5) bridge programs that enable students at com5 munity colleges to matriculate directly into bacca6 laureate aerospace and aviation safety related pro7 grams;

8 (6) internships, including mentoring programs,

9 carried out in partnership with the aerospace and

10 aviation industry;

11 (7) technical training and apprenticeship that

12 prepares students for careers in aerospace manufac13 turing or operations; and

14 (8) innovative uses of digital technologies, par15 ticularly at institutions of higher education that serve

16 high numbers or percentages of economically dis17 advantaged students.

18 (d) GRANTEE REQUIREMENTS.—In developing grant

19 requirements under this section, the Administrators shall

20 consider means, developed in concert with applicants, of in21 creasing the number of students studying toward and com22 pleting technical training and apprenticeship programs,

23 certificate programs, and associate’s or bachelor’s degrees

24 in fields related to aerospace and aviation safety.

25 (e) DEFINITIONS.—In this section:
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1 (1) ELIGIBLE APPLICANT DEFINED.—The term

2 ‘‘eligible applicant’’ means—

3 (A) an institution of higher education;

4 (B) a consortium of institutions of higher

5 education; or

6 (C) a partnership between—

7 (i) an institution of higher education

8 or a consortium of such institutions; and

9 (ii) a nonprofit organization, a State

10 or local government, or a private company,

11 with demonstrated experience and effective12 ness in aerospace education.

13 (2) INSTITUTION OF HIGHER EDUCATION.—The

14 term ‘‘institution of higher education’’ has the mean15 ing given that term by subsection (a) of section 101

16 of the Higher Education Act of 1965 (20 U.S.C.

17 1001(a)), and includes an institution described in

18 subsection (b) of that section.

19 (f) AUTHORIZATION OF APPROPRIATIONS.—

20 (1) NASA.—There are authorized to be appro21 priated to the Administrator of the National Aero22 nautics and Space Administration such sums as may

23 be necessary for fiscal year 2004 to carry out this sec24 tion.
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1 (2) FAA.—There are authorized to be appro2 priated to the Administrator of the Federal Aviation

3 Administration such sums as may be necessary for

4 fiscal year 2004 to carry out this section.

5 (g) REPORT, BUDGET, AND PLAN.—Within 180 days

6 after the date of enactment of this Act, the Administrators

7 jointly shall submit to the Senate Committee on Commerce,

8 Science, and Transportation and the House of Representa9 tives Committee on Transportation and Infrastructure a re10 port setting forth—

11 (1) recommendations as to whether the program

12 authorized by this section should be extended for mul13 tiple years;

14 (2) a budget for such a multi-year program; and

15 (3) a plan for conducting such a program.

16 SEC. 642. SCHOLARSHIPS FOR SERVICE.

17 (a) IN GENERAL.—The Administrator of the National

18 Aeronautics and Space Administration and the Adminis19 trator of the Federal Aviation Administration shall develop

20 a joint student loan program for fulltime students enrolled

21 in an undergraduate or post-graduate program leading to

22 an advanced degree in an aerospace-related or aviation

23 safety-related field of endeavor.

24 (b) INTERNSHIPS.—The Administrators may provide

25 temporary internships to such students.
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1 (c) AUTHORIZATION OF APPROPRIATIONS.—

2 (1) NASA.—There are authorized to be appro3 priated to the Administrator of the National Aero4 nautics and Space Administration such sums as may

5 be necessary for fiscal year 2004 to carry out this sec6 tion.

7 (2) FAA.—There are authorized to be appro8 priated to the Administrator of the Federal Aviation

9 Administration such sums as may be necessary for

10 fiscal year 2004 to carry out this section.

11 (g) REPORT, BUDGET, AND PLAN.—Within 180 days

12 after the date of enactment of this Act, the Administrators

13 jointly shall submit to the Senate Committee on Commerce,

14 Science, and Transportation and the House of Representa15 tives Committee on Transportation and Infrastructure a re16 port setting forth—

17 (1) recommendations as to whether the program

18 authorized by this section should be extended for mul19 tiple years;

20 (2) a budget for such a multi-year program; and

21 (3) a plan for conducting such a program.
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1 Subtitle C—FAA Research,

2 Engineering, and Development

3 SEC. 661. RESEARCH PROGRAM TO IMPROVE AIRFIELD

4 PAVEMENTS.

5 The Administrator of the Federal Aviation Adminis6 tration shall continue the program to consider awards to

7 nonprofit concrete and asphalt pavement research founda8 tions to improve the design, construction, rehabilitation,

9 and repair of rigid concrete airfield pavements to aid in

10 the development of safer, more cost-effective, and more dura11 ble airfield pavements. The Administrator may use grants

12 or cooperative agreements in carrying out this section.

13 Nothing in this section requires the Administrator to

14 prioritize an airfield pavement research program above

15 safety, security, Flight 21, environment, or energy research

16 programs.

17 SEC. 662. ENSURING APPROPRIATE STANDARDS FOR AIR18 FIELD PAVEMENTS.

19 (a) IN GENERAL.—The Administrator of the Federal

20 Aviation Administration shall review and determine wheth21 er the Federal Aviation Administration’s standards used to

22 determine the appropriate thickness for asphalt and con23 crete airfield pavements are in accordance with the Federal

24 Aviation Administration’s standard 20-year-life require25 ment using the most up-to-date available information on
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1 the life of airfield pavements. If the Administrator deter2 mines that such standards are not in accordance with that

3 requirement, the Administrator shall make appropriate ad4 justments to the Federal Aviation Administration’s stand5 ards for airfield pavements.

6 (b) REPORT.—Within 1 year after the date of enact7 ment of this Act, the Administrator shall report the results

8 of the review conducted under subsection (a) and the adjust9 ments, if any, made on the basis of that review to the Senate

10 Committee on Commerce, Science, and Transportation and

11 the House of Representatives Committee on Transportation

12 and Infrastructure.

13 SEC. 663. ASSESSMENT OF WAKE TURBULENCE RESEARCH

14 AND DEVELOPMENT PROGRAM.

15 (a) ASSESSMENT.—The Administrator of the Federal

16 Aviation Administration shall enter into an arrangement

17 with the National Research Council for an assessment of

18 the Federal Aviation Administration’s proposed wake tur19 bulence research and development program. The assessment

20 shall include—

21 (1) an evaluation of the research and develop22 ment goals and objectives of the program;

23 (2) a listing of any additional research and de24 velopment objectives that should be included in the

25 program;
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1 (3) any modifications that will be necessary for

2 the program to achieve the program’s goals and objec3 tives on schedule and within the proposed level of re4 sources; and

5 (4) an evaluation of the roles, if any, that should

6 be played by other Federal agencies, such as the Na7 tional Aeronautics and Space Administration and the

8 National Oceanic and Atmospheric Administration,

9 in wake turbulence research and development, and

10 how those efforts could be coordinated.

11 (b) REPORT.—A report containing the results of the

12 assessment shall be provided to the Committee on Science

13 of the House of Representatives and to the Committee on

14 Commerce, Science, and Transportation of the Senate not

15 later than 1 year after the date of enactment of this Act.

16 (c) AUTHORIZATION OF APPROPRIATIONS.—There are

17 authorized to be appropriated to the Administrator of the

18 Federal Aviation Administration $500,000 for fiscal year

19 2004 to carry out this section.

20 SEC. 664. AIR QUALITY IN AIRCRAFT CABINS.

21 (a) IN GENERAL.—The Administrator of the Federal

22 Aviation Administration shall undertake the studies and

23 analysis called for in the report of the National Research

24 Council entitled ‘‘The Airliner Cabin Environment and the

25 Health of Passengers and Crew’’.
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1 (b) REQUIRED ACTIVITIES.—In carrying out this sec2 tion, the Administrator, at a minimum, shall—

3 (1) conduct surveillance to monitor ozone in the

4 cabin on a representative number of flights and air5 craft to determine compliance with existing Federal

6 Aviation Regulations for ozone;

7 (2) collect pesticide exposure data to determine

8 exposures of passengers and crew;

9 (3) analyze samples of residue from aircraft ven10 tilation ducts and filters after air quality incidents to

11 identify the contaminants to which passengers and

12 crew were exposed;

13 (4) analyze and study cabin air pressure and al14 titude; and

15 (5) establish an air quality incident reporting

16 system.

17 (c) REPORT.—Not later than 30 months after the date

18 of enactment of this Act, the Administrator shall transmit

19 to Congress a report on the findings of the Administrator

20 under this section.

21 SEC. 665. INTERNATIONAL ROLE OF THE FAA.

22 Section 40101(d) is amended by adding at the end the

23 following:

24 ‘‘(8) Exercising leadership with the Administra25 tor’s foreign counterparts, in the International Civil
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1 Aviation Organization and its subsidiary organiza2 tions, and other international organizations and fora,

3 and with the private sector to promote and achieve

4 global improvements in the safety, efficiency, and en5 vironmental effect of air travel.’’.

6 SEC. 666. FAA REPORT ON OTHER NATIONS’ SAFETY AND

7 TECHNOLOGICAL ADVANCEMENTS.

8 The Administrator of the Federal Aviation Adminis9 tration shall review aviation and aeronautical safety, and

10 research funding and technological actions in other coun11 tries. The Administrator shall submit a report to the Com12 mittee on Science of the House of Representatives and to

13 the Committee on Commerce, Science, and Transportation

14 of the Senate, together with any recommendations as to how

15 such activities might be utilized in the United States.

16 SEC. 667. DEVELOPMENT OF ANALYTICAL TOOLS AND CER17 TIFICATION METHODS.

18 The Federal Aviation Administration shall conduct re19 search to promote the development of analytical tools to im20 prove existing certification methods and to reduce the over21 all costs for the certification of new products.

22 SEC. 668. PILOT PROGRAM TO PROVIDE INCENTIVES FOR

23 DEVELOPMENT OF NEW TECHNOLOGIES.

24 (a) IN GENERAL.—The Administrator of the Federal

25 Aviation Administration may conduct a limited pilot pro-
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1 gram to provide operating incentives to users of the air2 space for the deployment of new technologies, including

3 technologies to facilitate expedited flight routing and se4 quencing of take-offs and landings.

5 (b) AUTHORIZATION OF APPROPRIATIONS.—There are

6 authorized to be appropriated to the Administrator

7 $500,000 for fiscal year 2004.

8 SEC. 669. FAA CENTER FOR EXCELLENCE FOR APPLIED RE9 SEARCH AND TRAINING IN THE USE OF AD10 VANCED MATERIALS IN TRANSPORT AIR11 CRAFT.

12 (a) IN GENERAL.—The Administrator of the Federal

13 Aviation Administration shall develop a Center for Excel14 lence focused on applied research and training on the dura15 bility and maintainability of advanced materials in trans16 port airframe structures, including the use of polymeric

17 composites in large transport aircraft. The Center shall—

18 (1) promote and facilitate collaboration among

19 academia, the Federal Aviation Administration’s

20 Transportation Division, and the commercial aircraft

21 industry, including manufacturers, commercial air

22 carriers, and suppliers; and

23 (2) establish goals set to advance technology, im24 prove engineering practices, and facilitate continuing

25 education in relevant areas of study.
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1 (b) AUTHORIZATION OF APPROPRIATIONS.—There are

2 authorized to be appropriated to the Administrator

3 $500,000 for fiscal year 2004 to carry out this section.

4 SEC. 670. FAA CERTIFICATION OF DESIGN ORGANIZATIONS.

5 (a) GENERAL AUTHORITY TO ISSUE CERTIFICATES.—

6 Section 44702(a) is amended by inserting ‘‘design organiza7 tion certificates,’’ after ‘‘airman certificates,’’.

8 (b) DESIGN ORGANIZATION CERTIFICATES.—

9 (1) IN GENERAL.—Section 44704 is amended—

10 (A) by striking the section heading and in11 serting the following:

12 ‘‘§ 44704. Design organization certificates, type cer13 tificates, production certificates, and air14 worthiness certificates’’ ;

15 (B) by redesignating subsections (a) through

16 (d) as subsections (b) through (e);

17 (C) by inserting before subsection (b) the

18 following:

19 ‘‘(a) DESIGN ORGANIZATION CERTIFICATES.—

20 ‘‘(1) PLAN.—Within 3 years after the date of en21 actment of the Aviation Investment and Revitaliza22 tion Vision Act, the Administrator of the Federal

23 Aviation Administration shall submit a plan to the

24 Senate Committee on Commerce, Science, and Trans25 portation and the House of Representatives Com-
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1 mittee on Transportation and Infrastructure for the

2 development and oversight of a system for certifi3 cation of design organizations under paragraph (2)

4 that ensures that the system meets the highest stand5 ards of safety.

6 ‘‘(2) IMPLEMENTATION OF PLAN.—Within 5

7 years after the date of enactment of the Aviation In8 vestment and Revitalization Vision Act, the Adminis9 trator of the Federal Aviation Administration may

10 commence the issuance of design organization certifi11 cates under paragraph (3) to authorize design organi12 zations to certify compliance with the requirements

13 and minimum standards prescribed under section

14 44701(a) for the type certification of aircraft, aircraft

15 engines, propellers, or appliances.

16 ‘‘(3) ISSUANCE OF CERTIFICATES.—On receiving

17 an application for a design organization certificate,

18 the Administrator shall examine and rate the design

19 organization in accordance with the regulations pre20 scribed by the Administrator to determine that the de21 sign organization has adequate engineering, design,

22 and testing capabilities, standards, and safeguards to

23 ensure that the product being certificated is properly

24 designed and manufactured, performs properly, and

25 meets the regulations and minimum standards pre-
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1 scribed under that section. The Administrator shall

2 include in a design organization certificate terms re3 quired in the interest of safety.

4 ‘‘(4) NO EFFECT ON POWER OF REVOCATION.—

5 Nothing in this subsection affects the authority of the

6 Secretary of Transportation to revoke a certificate.’’;

7 (D) by striking subsection (b), as redesig8 nated, and inserting the following:

9 ‘‘(b) TYPE CERTIFICATES.—

10 ‘‘(1) IN GENERAL.—The Administrator may

11 issue a type certificate for an aircraft, aircraft en12 gine, or propeller, or for an appliance specified under

13 paragraph (2)(A) of this subsection—

14 ‘‘(A) when the Administrator finds that the

15 aircraft, aircraft engine, or propeller, or appli16 ance is properly designed and manufactured,

17 performs properly, and meets the regulations and

18 minimum standards prescribed under section

19 44701(a) of this title; or

20 ‘‘(B) based on a certification of compliance

21 made by a design organization certificated under

22 subsection (a).

23 ‘‘(2) INVESTIGATION AND HEARING.—On receiv24 ing an application for a type certificate, the Adminis25 trator shall investigate the application and may con-
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1 duct a hearing. The Administrator shall make, or re2 quire the applicant to make, tests the Administrator

3 considers necessary in the interest of safety.’’.

4 (c) REINSPECTION AND REEXAMINATION.—Section

5 44709(a) is amended by inserting ‘‘design organization,

6 production certificate holder,’’ after ‘‘appliance,’’.

7 (d) PROHIBITIONS.—Section 44711(a)(7) is amended

8 by striking ‘‘agency’’ and inserting ‘‘agency, design organi9 zation certificate, ’’.

10 (e) CONFORMING AMENDMENTS.—

11 (1) CHAPTER ANALYSIS.—The chapter analysis

12 for chapter 447 is amended by striking the item relat13 ing to section 44704 and inserting the following:

‘‘44704. Design organization certificates, type certificates, production certificates,

and airworthiness certificates.’’.

14 (2) CROSS REFERENCE.—Section 44715(a)(3) is

15 amended by striking ‘‘44704(a)’’ and inserting

16 ‘‘44704(b)’’.

17 SEC. 671. REPORT ON LONG TERM ENVIRONMENTAL IM18 PROVEMENTS.

19 (a) IN GENERAL.—The Administrator of the Federal

20 Aviation Administration, in consultation with the Admin21 istrator of the National Aeronautics and Space Administra22 tion and the head of the Department of Transportation’s

23 Office of Aerospace and Aviation Liaison, shall conduct a
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1 study of ways to reduce aircraft noise and emissions and

2 to increase aircraft fuel efficiency. The study shall—

3 (1) explore new operational procedures for air4 craft to achieve those goals;

5 (2) identify both near term and long term op6 tions to achieve those goals;

7 (3) identify infrastructure changes that would

8 contribute to attainment of those goals;

9 (4) identify emerging technologies that might

10 contribute to attainment of those goals;

11 (5) develop a research plan for application of

12 such emerging technologies, including new combuster

13 and engine design concepts and methodologies for de14 signing high bypass ratio turbofan engines so as to

15 minimize the effects on climate change per unit of

16 production of thrust and flight speed; and

17 (6) develop an implementation plan for exploit18 ing such emerging technologies to attain those goals.

19 (b) REPORT.—The Administrator shall transmit a re20 port on the study to the Senate Committee on Commerce,

21 Science, and Transportation and the House of Representa22 tives Committee on Transportation and Infrastructure

23 within 1 year after the date of enactment of this Act.

24 (c) AUTHORIZATION OF APPROPRIATIONS.—There are

25 authorized to be appropriated to the Administrator of the
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1 Federal Aviation Administration $500,000 for fiscal year

2 2004 to carry out this section.

3 TITLE VII—EXTENSION OF AIR4 PORT AND AIRWAY TRUST

5 FUND EXPENDITURE AU6 THORITY

7 SEC. 701. EXTENSION OF EXPENDITURE AUTHORITY.

8 (a) IN GENERAL.—Paragraph (1) of section 9502(d)

9 of the Internal Revenue Code of 1986 (relating to expendi10 tures from Airport and Airway Trust Fund) is amended—

11 (1) by striking ‘‘October 1, 2003’’ and inserting

12 ‘‘October 1, 2006’’, and

13 (2) by inserting before the semicolon at the end

14 of subparagraph (A) the following: ‘‘or the Aviation

15 Investment and Revitalization Vision Act’’.

16 (b) CONFORMING AMENDMENT.—Paragraph (2) of sec17 tion 9502(f) of the Internal Revenue Code of 1986 is amend18 ed by striking ‘‘October 1, 2003’’ and inserting ‘‘October

19 1, 2006’’.

Attest:

Secretary.
108TH CONGRESS

1ST SESSION H. R. 2115

AMENDMENT