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[Senate Report 107-162]
[From the U.S. Government Publishing Office]

                                                       Calendar No. 421
107th Congress                                                   Report
                                 SENATE
 2d Session                                                     107-162

======================================================================

 
                     AVIATION DELAY PREVENTION ACT

                                _______
                                

                 June 13, 2002.--Ordered to be printed

                                _______
                                

      Mr. Hollings, from the Committee on Commerce, Science, and 
                Transportation, submitted the following

                              R E P O R T

                         [To accompany S. 633]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill (S. 633) TITLE deg. to 
provide for the review and management of airport congestion, 
and for other purposes, having considered the same, reports 
favorably thereon with an amendment in the nature of a 
substitute and recommends that the bill (as amended) do pass.

                          Purpose of the Bill

  The purpose of this bill, as reported, is to expedite the 
environmental processes related to the review and management of 
airport capacity projects, reduce airport congestion, and for 
other purposes.

                          Background and Needs

  Prior to September 11, 2001, major delays and congestion had 
become an increasing problem at our nation's airports. Capacity 
of the aviation system had not been keeping up with demand, and 
traveler frustration was at an all-time high. While the events 
of September 11 caused an immediate and significant drop-off in 
air travel, consumer confidence is beginning to return, and air 
travel is beginning to rebound. Current estimates indicate that 
air travel will return to pre-September 11 levels, and we will 
again be faced with a capacity crisis.
  The Federal Aviation Administration (FAA) has been working 
with air carriers to mitigate delays at airports. While new 
technologies and schedule changes provided some relief prior to 
September 11, it has become clear that expanding the system's 
capacity will be necessary to adaquately address this problem. 
FAA estimates that by 2013 there will be one billion commercial 
air passengers in the U.S., up by more than 300 million from 
2000. Expanding the system must be a national priority or our 
economy, our communities, and the millions of Americans 
travelling will suffer.
  Prior to September 11, according to the Department of 
Transportation (DOT), one in four flights would arrive late. 
Between 1995-2000, departure and arrival delays increased 33 
percent, and in the year 2000 alone, DOT reported an almost 19 
percent increase in departure and arrival delays. Historically, 
weather accounts for 70 percent of the delays that occur at our 
nation's airports.
  Today, with the exception of four airports that are subject 
to flight limitations, airlines are free to schedule flights to 
meet demand. Each carrier develops its own schedules. Carriers 
have recognized that at times scheduling can exceed capacity, 
but an individual carrier will not unilaterally cut its flights 
because another carrier could then add flights. A carrier has 
little incentive to reduce flights if the result is the loss of 
business to a competitor. However, some carriers have made an 
effort to address capacity issues at larger airports. For 
example, United Airlines announced that it would cut flights 
and replace others with larger aircraft at five of its hubs. 
Delta revamped its entire schedule at Hartsfield Atlanta 
International Airport, spreading its arrivals and departures 
over 12 time periods (banks) instead of 10. American has also 
changed its flight patterns at Chicago O'Hare in an effort to 
reduce delays.
  In April 2001, DOT/FAA issued capacity benchmarks for each of 
the largest airports (31 facilities) in the U.S. These 
benchmarks, which focused on arrivals and departures, raise the 
issue of ``demand management''--leaving two choices: incurring 
additional delays or mandating fewer flights.
  The U.S. cannot continue with an air transportation system 
that does not meet the needs of the public. Efforts to reduce 
delays involve many issues including: increasing capacity at 
airports; increasing air traffic control (ATC) capacity and 
efficiency (e.g., the use of satellites to more precisely track 
aircraft); changing carrier scheduling practices; and ensuring 
that the FAA has a chief operating officer (COO) to run the ATC 
system.
  Over the last several years, it has been recognized that 
given growing demand, capacity had to be increased. For 
example, in 1997, the congressionally-created National Civil 
Aviation Review Commission (NCARC) found that gridlock in the 
skies is a certainty in the near future unless the ATC system 
is modernized and infrastructure is expanded. In January 1997, 
the White House Commission on Aviation Security and Safety, 
chaired by Vice President Gore, recommended that modernization 
of the ATC system be expedited from 2015 to 2005. Likewise, in 
1995 and 1996, the Senate Committee on Commerce, Science, and 
Transportation (Committee) recognized that the FAA needed more 
funding to meet the growing demand on the system.
  To address concerns that the need to expand our airports was 
not given a high enough priority, Congress passed in 1999 the 
Wendell H. Ford Aviation Investment and Reform Act (AIR-21; 
P.L. 106-181). This legislation increased funding for airport 
construction from $1.9 billion (FY 2000) to $3.2-3.4 billion 
(FY 2001-03), and increased passenger facility charges from 
$3.00 to $4.50 to further enable airports to fund airport 
expanison projects. AIR-21 also increased funding for ATC 
equipment. While AIR-21 provides critical funding to build new 
runways and buy new ATC equipment, additional expedited 
processes are needed to meet the ever growing demand for 
capacity.
  In the next 10 years, several runways will be built, but more 
must be done to promote viable options to expand capacity. 
There is simply not enough runway space in the country to land 
all of the current and projected flights. Expanding airport 
capacity, while complex, essentially comes down to building 
more runways and using improved technology. At some airports, 
expanding runways can dramatically increase capacity--in some 
cases by 50 percent.
  In the last 25 years, only one new major airport, Denver 
International Airport, has been built, and at a cost of more 
than $6 billion. Denver is already in the process of adding a 
new 16,000 foot runway. A smaller airport opened in Arkansas, 
and three military bases slated for closing have been converted 
to civilian use under an FAA program created by Congress. In a 
report to Congress last May, the FAA noted that out of the top 
31 airports, 18 are involved in the various stages of studying, 
planning, or constructing new runways. The cost of a new runway 
can range from $50 million (Boston's Logan is planning a short 
runway for commuter flights) to $850 million (St. Louis) and 
can take 10 years or longer to complete.
  Airports begin the runway planning process when an existing 
runway reaches 60 percent of its capacity. The FAA traffic 
growth forecasts assume about a 3-4 percent growth in traffic 
traditionally. Ideally, at the end of the approximately 10-year 
completion process, the existing runway is at capacity and a 
new one is ready to be opened. However, delays in the process 
also occur. A May 2001 report by the FAA highlighted a number 
of areas where changes could be made to facilitate the 
completion of the environmental review process and mitigation 
of local concerns.
  Runway construction is a complicated task, involving state 
and local officials, state environmental laws and procedures, 
Federal environmental processes or reviews, issuance of state 
and Federal permits (e.g., permits for storm water systems or 
for actions that affect wetlands), and legal challenges. The 
Environmental Impact Statement (EIS) process can involve up to 
40 different statutes and many Federal agencies. It also must 
include an analysis of how the runway will impact the FAA's air 
traffic control operations and ability to coordinate flight 
paths and traffic that will result from the new runway (e.g., 
some proposed runway configurations may not increase capacity 
because of aircraft traffic flow patterns). The time needed to 
build a runway includes consideration of a number of factors, 
including the following:
             Local determination on whether or not to 
        build a runway, and the location of the runway.
             The formal National Environmental Policy 
        Act (NEPA) process--the FAA is the lead agency for the 
        EIS for all airport construction projects.
             Within 60 days of the final FAA decision--
        (Record of Decision, or ROD), legal challenges must be 
        filed.
             Permits to build the airport (state and/or 
        Federal) must then be obtained.
             And finally, construction--which can take 
        3-4 years.
  The FAA has been sued many times on its RODs, but has never 
lost a challenge. The EIS process can involve many Federal 
agencies with different expertise and responsibilities, and 
requires their approval or sign-off for various aspects of a 
project. Each project is unique and the FAA holds public 
meetings to solicit comments at various stages of the process. 
For example, in St. Louis, the FAA received and responded to 
over 15,000 comments regarding a new runway. The thoroughness 
of that review and analysis was noted by the court in upholding 
the challenge to the FAA's St. Louis ROD.
  Efforts to streamline this long and cumbersome process, 
without changing the existing environmental laws and rights of 
various communities, are the basis for S. 633. The 
Administration, as part of AIR-21, was directed to report to 
Congress on how to improve the environmental review process for 
runway construction. A report was released in May 2001, as 
noted earlier.
  S. 633 seeks to address delay problems in three ways: by 
requiring FAA to expedite and streamline the airport 
construction process; by allowing carriers to talk about 
reducing flights or changing schedules where needed; and, by 
increasing the salary for the FAA COO.

                      Summary of Major Provisions

  S. 633 directs the Secretary to develop and implement an 
expedited coordinated environmental review process for airport 
capacity-enhancement projects that provides for: (1) 
coordination among Federal, regional, state, and local agencies 
concerned with the preparation of EISs or environmental 
assessments under the NEPA; (2) an expedited and coordinated 
process for environmental reviews that ensures that all 
necessary reviews and permits are done concurrently and not 
consecutively; and (3) a date certain for completing all 
environmental reviews.
  S. 633 directs the Secretary of Transportation to review and 
report to specified congressional committees on air carrier 
overscheduling at large hub airports.
  This bill amends Federal aviation law to authorize an air 
carrier to file with the Secretary a request for authority for 
a group of two or more air carriers to discuss cooperative 
scheduling arrangements, provided its sole purpose is to reach 
an agreement between or among such carriers to reduce 
overscheduling and flight delays during peak hours of operation 
and periods of inclement weather at any large hub airport. It 
authorizes the Secretary to approve such an agreement only if 
it will reduce congestion at the affected airport, will not 
reduce service to small communities, and is not adverse to the 
public interest. Additionally, it enables the Secretary to 
exempt such arrangements from U.S. antitrust laws if it is 
found to be in the public interest.

                          Legislative History

  On March 27, 2001, Senator Hutchison introduced S. 633, a 
bill to provide for the review and management of airport 
congestion. The bill was originally cosponsored by Senator 
Rockefeller. Senator McCain subsequently cosponsored the bill.
  On March 29, 2001, the Committee held a hearing on S. 633 and 
the need to expedite expansion to minimize congestion at U.S. 
airports.
  On August 2, 2001, the Committee ordered S. 633 to be 
reported with an amendment in the nature of a substitute by 
voice vote.

                            Estimated Costs

  In accordance with paragraph 11(a) of rule XXVI of the 
Standing Rules of the Senate and section 403 of the 
Congressional Budget Act of 1974, the Committee provides the 
following cost estimate, prepared by the Congressional Budget 
Office:

               CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

S. 633--Aviation Delay Prevention Act

    Summary: S. 633 would allow the Federal Aviation 
Administration (FAA) to provide some airport operators with 
grants to construct and equip certain types of control towers. 
The bill would authorize the FAA to accept fees from airport 
operators so it could hire more staff to expedite the planning 
and environmental review of runway construction projects. S. 
633 would allow the Secretary of Transportation to exempt air 
carriers from antitrust laws through 2005, under certain 
conditions. In addition, the bill would expand the requirements 
for a study on air quality in passenger cabins on commercial 
aircraft that is required under current law. Finally, the bill 
would require the Department of Transportation to prepare a 
report on overscheduling, flight cancellations, and the status 
of runway construction.
    Based on information from the FAA and historical spending 
patterns, CBO estimates that implementing S. 633 would cost $47 
million over the 2002-2006 period, subject to appropriation of 
the necessary amounts. By allowing FAA to receive and spend 
fees to hire additional staff S. 633 would affect direct 
spending; therefore, pay-as-you-go procedures would apply, but 
CBO estimates that any such effects would be negligible.
    S. 633 contains an intergovernmental mandate as defined in 
the Unfunded Mandates Reform Act (UMRA) because it would place 
a duty upon certain airport authorities (public entities) to 
study options for increasing their capacity. CBO estimates, 
however, that the costs of this mandate would not exceed the 
threshold established in that act ($56 million in 2001, 
adjusted annually for inflation). Other provisions of the bill 
would benefit certain state and local governments by amending 
existing grant programs to broaden eligibility and reduce 
required matching funds. This bill contains no new private-
sector mandates as defined in UMRA.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of S. 633 is shown in the following table. For 
this estimate we assume that the bill will be enacted near the 
start of 2002 and that the estimated amounts will be provided 
each year. The costs of this legislation fall within budget 
function 400 (transportation).

----------------------------------------------------------------------------------------------------------------
                                                                       By fiscal year, in millions of dollars--
                                                                    --------------------------------------------
                                                                       2002     2003     2004     2005     2006
----------------------------------------------------------------------------------------------------------------
                                CHANGES IN SPENDING SUBJECT TO APPROPRIATION a,b

Estimated Authorization Level......................................        1        5        6        7        7
Estimated Outlays..................................................        5       13       12        9        8
----------------------------------------------------------------------------------------------------------------
a Enactment of S. 633 also would have a negligible impact on direct spending.
b A portion of the estimated outlays would come from contract authority already provided to FAA under current
  law. Use of that authority, however, is subject to approval in annual appropriations acts.

    Basis of estimate: CBO estimates that implementing S. 633 
would cost $47 million over the 2002-2006 period, assuming 
appropriation of the necessary amounts. The bill also would 
have a negligible effect on direct spending.

Spending subject to appropriation

    CBO estimates that providing federal grants for control 
tower construction would cost about $22 million over the 2002-
2006 period. In addition, CBO estimates that federal assistance 
for operating these towers would cost an additional $25 million 
over this period.
    Control Towers. S. 633 would authorize the FAA to provide 
grants to airport operators to construct and equip control 
towers. Such grants could be no more than $1.1 million per 
tower. Based on information from the FAA and the American 
Association of Airport Executives, CBO estimates that FAA would 
provide grants for about 20 control towers over the next five 
years. Under the bill, grants would be made from the Airport 
Improvement Program (AIP), which is funded with contract 
authority (a mandatory form of budget authority) through 2003. 
S. 633 would not change the total amount of contract authority 
available to the Airport Improvement Program. Expenditures from 
AIP contract authority are governed by obligation limitations 
contained in annual appropriation acts, and are considered 
discretionary spending. Assuming appropriation acts increase 
the obligation limitation for this program by the necessary 
amounts, CBO estimates that implementing S. 633 would cost 
about $22 million over the 2002-2006 period.
    Operation of Control Towers. The additional towers 
constructed under the bill would be eligible to participate in 
the Contract Tower program. Under that program, the FAA shares 
the cost of operating towers with airport operators. FAA spends 
on average $35,000 annually to support each contract tower. CBO 
estimates that supporting 20 additional towers would cost about 
$7 million a year. Because the FAA would incur operating costs 
only after the towers are constructed and equipped, CBO 
estimates that FAA would spend about $25 million over the 2002-
2006 period to support additional towers, assuming 
appropriations of the necessary amounts.
    Study on Air Quality. S. 633 would require the National 
Academy of Sciences to work with the Centers for Disease 
Control and Prevention to measure the air quality in passenger 
cabins on commercial aircraft. The bill would require the FAA 
to report the results of the study by January 31, 2002. Based 
on information from the National Academy of Sciences, CBO 
estimates that completing the study would cost about $1 million 
in 2002, subject to the availability of appropriated funds.
    Antitrust Exemption. Under the bill, air carriers could 
cooperate to limit flights at airports where scheduled flights 
exceed capacity if the Secretary of Transportation determines 
that such agreements are necessary to reduce travel delays due 
to congestion or bad weather. S. 633 would require that a 
representative of the Department of Transportation monitor 
discussions among airlines for this purpose, and that any 
discussions be open to the public. Based on information from 
the Department of Transportation, CBO estimates that the annual 
cost of monitoring discussions between air carriers would be 
negligible and subject to the availability of appropriated 
funds.

 Direct spending

    S. 633 would allow the FAA to accept fees from airport 
operators in order to hire more attorneys and environmental 
specialists to expedite the planning and environmental review 
of runway construction projects. Based on the number of airport 
operators that are likely to participate and the cost of 
qualified employees, CBO estimates FAA would collect about $3 
million a year over the 2002-2006 period. These payments could 
then be spent without further appropriation action to plan and 
conduct environmental reviews. Because the additional 
collections and spending would be approximately equal in each 
year, we estimate that the net impact on direct spending of 
this provision would be negligible.
    Pay-as-you-go considerations: The Balanced Budget and 
Emergency Deficit Control Act sets up pay-as-you-go procedures 
for legislation affecting direct spending or receipts. CBO 
estimates that enacting S. 633 would have a negligible effect 
on direct spending.
    Estimated impact on state, local, and tribal governments: 
S. 633 would require certain airport authorities to establish a 
delay reduction task force or to conduct a capacity enhancement 
study to determine means of increasing airport capacity. This 
requirement would be a mandate under UMRA, but CBO estimates 
that the cost of complying with the mandate would not exceed 
the threshold established by that act ($56 million in 2001, 
adjusted annually for inflation). Airport authorities would 
incur costs only to manage the task force or study and to 
produce a report. The costs of developing alternatives to 
enhance capacity would be paid by the Federal Aviation 
Administration through grants and technical assistance.
    The bill would authorize grants to state and local 
governments that abut certain airports to develop land use 
compatibility plans with the goal of making land areas around 
airports compatible with aircraft operations. The bill also 
would amend an existing grant program that provides funds to 
install air traffic control towers by expanding eligibility for 
the grants and lowering matching fund requirements from 25 
percent of the project cost to 10 percent.
    Estimated impact on the private sector: This bill contains 
no new private-sector mandates as defined in UMRA.
    Previous CBO estimates: On May 18, 2001, CBO transmitted a 
cost estimate for H.R. 1407, as ordered reported by the House 
Committee on Transportation and Infrastructure on May 16, 2001. 
That version of the bill would require representatives of the 
Department of Transportation to monitor certain discussions 
among airlines and would result in negligible costs.
    On June 22, 2001, CBO transmitted a cost estimate for H.R. 
1407, as ordered reported by the House Committee on the 
Judiciary on June 20, 2001. That version of the bill would 
require representatives of the Department of Justice to monitor 
certain discussions among airlines and also would result in 
negligible costs.
    Estimate prepared by: Federal Costs: Mark Hadley; Impact on 
State, Local, and Tribal Governments: Susan Sieg Thompkins; and 
Impact on the Private Sector: Paige Piper/Bach.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                      Regulatory Impact Statement

  In accordance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee provides the 
following evaluation of the regulatory impact of the 
legislation, as reported:
  Because S. 633 does not create any new programs, the 
legislation will have no additional regulatory impact, and will 
result in no additional reporting requirements for businesses 
or individuals. The legislation will have no further effect on 
the number or types of individuals and businesses regulated, 
the economic impact of such regulation, the personal privacy of 
affected individuals, or the paperwork required from such 
individuals and businesses.

                       NUMBER OF PERSONS COVERED

  S. 633 is intended to improve airport capacity management and 
reduce airport congestion in the United States. The number of 
persons covered should be consistent with current levels of 
individuals effected.

                            ECONOMIC IMPACT

  S. 633 does not authorize or appropriate any funds or 
expenditures. Its intended purpose to improve the nation's 
airport capacity needs should have a beneficial impact on the 
economy of the United States.

                                PRIVACY

  S. 633 will not have an adverse effect on the personal 
privacy of any individuals that will be impacted by this 
legislation.

                               PAPERWORK

  S. 633 will have a minimal impact on current paperwork 
levels, and seeks to reduce duplication in some areas. The 
legislation requires the DOT to identify reasonable 
alternatives that exist to capacity enhancement projects for 
publication in the Federal Register, and to identify airports 
which cause significant delays to the national air 
transportation system. Airports that are identified as 
contributing considerably to air traffic delays in the U.S. 
will be required to generate a study on the matter, or develop 
a task force to submit recommendations for capacity 
enhancement.
  Additionally, the Department is required to produce a number 
of reports on aviation capacity issues, including an annual 
report on air carrier scheduling practices over the next 5 
years, and must ensure that transcripts of any scheduled 
``delay reduction meetings'' are made available for public 
release.

                      Section-by-Section Analysis

Section 1. Short Title

  Section 1 designates the short title of the bill as the 
``Aviation Delay Prevention Act.''

Section 2. Table of Sections

  Section 2 cites the title of each section of the legislation.

Section 101. Definitions

  Section 101 sets out definitions for the terms ``air 
carrier,'' ``enplanement,'' ``large hub airport,'' 
``overscheduling,'' and ``Secretary.'' These are based on 
existing definitions except for ``overscheduling,'' which would 
mean the airline practice of scheduling more departures at a 
particular time than the airport can accommodate.

Section 102. DOT Study and Report

  Section 102 requires DOT to complete a study, within 12 
months of enactment, of all large hub airports (approximately 
the top 31 airports in regard to total passenger enplanements). 
The study would determine the hourly capacity of each airport 
and the hours in which overscheduling takes place. It would 
also provide an analysis of what authority DOT has to mitigate 
congestion and any recommendations for providing DOT with 
additional authority: (1) to alleviate airport congestion and 
overscheduling; and (2) to expedite construction related to 
airport capacity expansion. This study would be repeated every 
year for five years.

Section 103. Delay Reduction Meetings

  Section 103 allows the Secretary to call for meetings between 
air carriers and the FAA Administrator to consider flight 
reductions at heavily congested airports if the Secretary and 
Administrator determine that conditions necessitate such 
discussions. Any meetings that are called will be chaired by 
the Administrator and will be open to all scheduled air 
carriers only to discuss the conditions that prompted the 
meeting, and the air carriers must be informed of these 
conditions at least two days prior to meeting. Any delay 
reduction proposals are required to be made to the 
Administrator rather than to another carrier. The DOT is 
required to be represented at any meetings, and the 
Administrator must make a transcript of the meeting available 
to the public within three working days.
  This section also mandates that the Secretary develop 
procedures for this program within 30 days, and requests air 
carriers to file a request with the Secretary to participate in 
this program. The Secretary will also have the option of 
developing a program to address the unique situation presented 
by inclement weather.

Section 104. Chief Operating Officer

  Section 104 removes statutory restrictions on the annual pay 
rate for the Chief Operating Officer of the Air Traffic 
Organization within the FAA.

Section 105. Passenger Facility Fee Definitional Changes

  Section 105 permits the use of passenger facility fees at 
large hub airports to finance expansion that will facilitate 
the ability of a competing air carrier to provide air service 
if that air carrier intends to initiate new or expand existing 
service at the airport, but is not a carrier at that facility. 
It is intended to provide a new entrant or non-dominant carrier 
at that airport an outlet to enter the market.

Section 106. DOT Rulemaking to Define On-Time Departure

  Section 106 requires the Secretary to define ``on-time 
departure'' through rulemaking required by AIR-21. The 
definition must be determined within 120 days of enactment of 
this Act, and must be made available to passengers in an 
efficient and reliable manner.

Section 107. Construction of Air Traffic Control Towers

  Section 107 expands the Secretary's ability to provide grants 
to airports for building, improving or purchasing ATC equipment 
for non-approach control towers. To receive a grant, the 
airports are required to participate in the FAA Contract Tower 
Program or pilot program and provide 10 percent of the cost of 
the project. Numerous airports without towers have expressed an 
interest in participating in this program. Issues such as 
funding for specific tower equipment continue to be raised and 
are addressed through this provision.
  The benefits of the Contract Tower Program have been 
compelling to date and the Committee is convinced that 
additional actions going forward to enhance it are warranted. 
The need to upgrade and enhance tower buildings, facilities, 
and equipment must be addressed. Facilities and equipment 
resource limitations have increasingly necessitated that 
airport sponsors in smaller communities build contract towers 
on their own that meet standards acceptable to the FAA.
  As a result, the Committee believes that airport sponsors in 
these smaller communities should have the added flexibility to 
utilize AIP funds to construct and equip tower facilities based 
on current FAA contract tower construction standards.
  The result will be a local/federal partnership providing 
substantial aviation safety/capacity/efficiency benefits. The 
Committee is proposing statutory language and funding 
authorization permitting the use of AIP entitlement funds for 
future contract tower construction and related equipment that 
will be consistent with FAA standards utilized for recently 
completed contract tower projects at airports eligible for the 
FAA contract tower program. By doing so, airport sponsors that 
have already acted to build their own towers using non-FAA 
funds should in no way expect to be repaid for those actions as 
the decisions to build were done knowing the legal limitations 
at the time of that decision. The provisions under this Act 
should in no way create any expectation that the Committee 
would ever consider ``backdating'' the program.
  The Committee has supported the contract tower program from 
its inception, first providing a pilot program under a cost 
sharing arrangement to build new towers at small airports, 
using the FAA's cost benefit criteria as a benchmark. The 
provisions included in this bill extend the ability to 
construct towers in the future for other airports. The program, 
initially objected to by the FAA and air traffic controllers, 
has to date converted its critics. However, future actions or 
overreaching could jeopardize that effort and support.

Section 108. Air Quality Standards Report

  Section 108 requires the National Academy of Sciences to work 
with the Center for Disease Control and Prevention when 
developing an air quality standard report mandated by AIR-21, 
and orders the Secretary to report the results of this study to 
the Committee no later than January 31, 2002.

Section 109. Special Rule for Airport in Illinois

  Section 109 retains the power of the Governor of Illinois to 
approve or disapprove airport projects in the State, but 
ensures that the provisions of the Act may be applied to 
projects in Illinois, and that airports in the state would be 
eligible to utilize the expedited process. In Illinois, a 
debate over expansion of O'Hare and the construction of a new 
airport, at Peotone, has been on-going for a number of years. 
During consideration of this Act, no final agreement between 
the Mayor of Chicago and Governor of Illinois existed, and thus 
this provision was added to ensure that nothing in this Act 
affected that debate.

Section 110. Categorical Exclusions

  Section 110 requires the Secretary to provide a report on 
recognized and proposed categorical exclusions from an 
environmental assessment or EIS on airport projects to the 
Committee within 30 days of enactment of the Act.

Section 111. Alternative Analysis

  Section 111 requires the Secretary to request public comments 
within 30 days of identifying airport enhancement projects to 
examine potential alternatives. Sixty days will be provided for 
public comment, and within 90 days after that point the 
Secretary will make the determination whether reasonable 
alternatives exist to the proposed project.

Section 112. Elimination of Duplicative Requests

  Section 112 eliminates redundant requirements within the law 
regarding project grant applications that emphasize airport 
development.

Section 201. Findings

  Section 201 sets forth six congressional findings 
establishing the general basis for enactment of the 
legislation.

Section 202. National Capacity Projects

  Section 202 requires the Secretary to identify any large hub 
airports with delays that markedly affect the national air 
transportation system. Any airport that is identified and is 
not currently participating in the runway expansion process or 
has not begun a capacity enhancement study (CES) must perform a 
CES or establish a delay reduction task force to report to the 
Secretary. Any airport that is the subject of a report or study 
recommending construction in response to delays must have the 
planning and environmental review process to address this 
matter completed within 5 years. Any airport that does not take 
recommended expansion action will be ineligible for federal 
planning and expansion funds or approval of passenger facility 
fees during that 5-year period for any projects that are not 
environment, safety, or security-related.
  Section 202 allows the Secretary to designate projects, which 
are determined to have a significant impact on enhancing the 
national air transportation system, as a national capacity 
project. The Secretary is also empowered to make grants to 
state and local government for land use compatibility plans 
directly related to national capacity projects.
  Section 202 requires DOT to develop and implement an 
expedited, coordinated environmental review process that 
encompasses all Federal, state, regional, and local agencies' 
reviews for airport projects. This process would provide for 
concurrent reviews and conclude by a date certain. The 
Secretary will also be required to start a pilot program to be 
funded by airport sponsors to improve environmental review of 
national capacity projects. The pilot program will provide for 
the hiring of full-time staff from outside the U.S. Government 
with an expertise in environmental policy.
  Section 202 provides the Secretary the option of prescribing 
air traffic procedures at facilities that are working on 
national capacity projects in an effort to minimize any adverse 
impacts of construction. Section 202 sets out definitions for 
``national capacity project,'' and other terms based on 
existing statutory meanings.

Section 203. Increase in Apportionment For, and Flexibility of, Noise 
        Compatibility Planning Programs

  Section 203 amends title 49 of the United States Code to 
ensure that at least 35 percent of special apportionment grants 
are used to address airport noise compatibility planning 
issues.

Section 204. Secretary of Transportation to Identify Airport 
        Congestion-Relief Projects and Forecast Airport Operations 
        Annually

  Section 204 requires the Secretary to provide to the 
Committee within 90 days of enactment of this legislation a 
list of planned projects and a list of options for expanding 
capacity at the 8 airports with the most severe delays.

Section 205. Quarterly Status Reports

  Section 205 requires the Secretary to provide quarterly 
status reports to the Committee on the status of major runway 
construction projects at the nation's 40 largest airports.

                        Changes in Existing Law

  In compliance with paragraph 12 of rule XXVI of the Standing 
Rules of the Senate, changes in existing law made by the bill, 
as reported, are shown as follows (existing law proposed to be 
omitted is enclosed in black brackets, new material is printed 
in italic, existing law in which no change is proposed is shown 
in roman):

                        TITLE 49. TRANSPORTATION

                SUBTITLE I. DEPARTMENT OF TRANSPORTATION

                        CHAPTER 1. ORGANIZATION

Sec. 106. Federal Aviation Administration

  (a) The Federal Aviation Administration is an administration 
in the Department of Transportation.
  (b) The head of the Administration is the Administrator. The 
Administration has a Deputy Administrator. They are appointed 
by the President, by and with the advice and consent of the 
Senate. When making an appointment, the President shall 
consider the fitness of the individual to carry out efficiently 
the duties and powers of the office. Except as provided in 
subsection (f) or in other provisions of law, the Administrator 
reports directly to the Secretary of Transportation. The term 
of office for any individual appointed as Administrator after 
August 23, 1994, shall be 5 years.
  (c) The Administrator must--
          (1) be a citizen of the United States;
          (2) be a civilian; and (3) have experience in a field 
        directly related to aviation.
  (d)(1) The Deputy Administrator must be a citizen of the 
United States and have experience in a field directly related 
to aviation. An officer on active duty in an armed force may be 
appointed as Deputy Administrator. However, if the 
Administrator is a former regular officer of an armed force, 
the Deputy Administrator may not be an officer on active duty 
in an armed force, a retired regular officer of an armed force, 
or a former regular officer of an armed force.
  (2) An officer on active duty or a retired officer serving as 
Deputy Administrator is entitled to hold a rank and grade not 
lower than that held when appointed as Deputy Administrator. 
The Deputy Administrator may elect to receive
                  (A) the pay provided by law for the Deputy 
                Administrator, or
                  (B) the pay and allowances or the retired pay 
                of the military grade held. If the Deputy 
                Administrator elects to receive the military 
                pay and allowances or retired pay, the 
                Administration shall reimburse the appropriate 
                military department from funds available for 
                the expenses of the Administration.
  (3) The appointment and service of a member of the armed 
forces as a Deputy Administrator does not affect the status, 
office, rank, or grade held by that member, or a right or 
benefit arising from the status, office, rank, or grade. The 
Secretary of a military department does not control the member 
when the member is carrying out duties and powers of the Deputy 
Administrator.
  (e) The Administrator and the Deputy Administrator may not 
have a pecuniary interest in, or own stock in or bonds of, an 
aeronautical enterprise, or engage in another business, 
vocation, or employment.
  (f) Authority of the Secretary and the Administrator.--
          (1) Authority of the secretary.--Except as provided 
        in paragraph (2), the Secretary of Transportation shall 
        carry out the duties and powers, and controls the 
        personnel and activities, of the Administration. 
        Neither the Secretary nor the Administrator may submit 
        decisions for the approval of, or be bound by the 
        decisions or recommendations of, a committee, board, or 
        organization established by executive order.
          (2) Authority of the administrator.--The 
        Administrator--
                  (A) is the final authority for carrying out 
                all functions, powers, and duties of the 
                Administration relating to--
                          (i) the appointment and employment of 
                        all officers and employees of the 
                        Administration (other than Presidential 
                        and political appointees);
                          (ii) the acquisition and maintenance 
                        of property and equipment of the 
                        Administration;
                          (iii) except as otherwise provided in 
                        paragraph (3), the promulgation of 
                        regulations, rules, orders, circulars, 
                        bulletins, and other official 
                        publications of the Administration; and
                          (iv) any obligation imposed on the 
                        Administrator, or power conferred on 
                        the Administrator, by the Air Traffic 
                        Management System Performance 
                        Improvement Act of 1996 (or any 
                        amendment made by that Act);
                  (B) shall offer advice and counsel to the 
                President with respect to the appointment and 
                qualifications of any officer or employee of 
                the Administration to be appointed by the 
                President or as a political appointee;
                  (C) may delegate, and authorize successive 
                redelegations of, to an officer or employee of 
                the Administration any function, power, or duty 
                conferred upon the Administrator, unless such 
                delegation is prohibited by law; and
                  (D) except as otherwise provided for in this 
                title, and notwithstanding any other provision 
                of law, shall not be required to coordinate, 
                submit for approval or concurrence, or seek the 
                advice or views of the Secretary or any other 
                officer or employee of the Department of 
                Transportation on any matter with respect to 
                which the Administrator is the final authority.
          (3) Regulations.--
                  (A) In general.--In the performance of the 
                functions of the Administrator and the 
                Administration, the Administrator is authorized 
                to issue, rescind, and revise such regulations 
                as are necessary to carry out those functions. 
                The issuance of such regulations shall be 
                governed by the provisions of chapter 5 of 
                title 5. The Administrator shall act upon all 
                petitions for rulemaking no later than 6 months 
                after the date such petitions are filed by 
                dismissing such petitions, by informing the 
                petitioner of an intention to dismiss, or by 
                issuing a notice of proposed rulemaking or 
                advanced notice of proposed rulemaking. The 
                Administrator shall issue a final regulation, 
                or take other final action, not later than 16 
                months after the last day of the public comment 
                period for the regulations or, in the case of 
                an advanced notice of proposed rulemaking, if 
                issued, not later than 24 months after the date 
                of publication in the Federal Register of 
                notice of the proposed rulemaking. On February 
                1 and August 1 of each year the Administrator 
                shall submit to the Committee on Transportation 
                and Infrastructure of the House of 
                Representatives and the Committee on Commerce, 
                Science, and Transportation of the Senate a 
                letter listing each deadline the Administrator 
                missed under this subparagraph during the 6-
                month period ending on such date, including an 
                explanation for missing the deadline and a 
                projected date on which the action that was 
                subject to the deadline will be taken.
                  (B) Approval of secretary of 
                transportation.--
                          (i) The Administrator may not issue a 
                        proposed regulation or final regulation 
                        that is likely to result in the 
                        expenditure by State, local, and tribal 
                        governments in the aggregate, or by the 
                        private sector, of $250,000,000 or more 
                        (adjusted annually for inflation 
                        beginning with the year following the 
                        date of the enactment of the Wendell H. 
                        Ford Aviation Investment and Reform Act 
                        for the 21st Century in any year, or 
                        any regulation which is significant, 
                        unless the Secretary of Transportation 
                        approves the issuance of the regulation 
                        in advance). For purposes of this 
                        paragraph, a regulation is significant 
                        if the Administrator, in consultation 
                        with the Secretary (as appropriate), 
                        determines that the regulation is 
                        likely to--
                                  (I) have an annual effect on 
                                the economy of $250,000,000 or 
                                more or adversely affect in a 
                                substantial material way the 
                                economy, a sector of the 
                                economy, productivity, 
                                competition, jobs, the 
                                environment, public health or 
                                safety, or State, local, or 
                                tribal governments or 
                                communities; or
                                  (II) raise novel or 
                                significant legal or policy 
                                issues arising out of legal 
                                mandates that may substantially 
                                and materially affect other 
                                transportation modes.
                          (ii) In an emergency, the 
                        Administrator may issue a regulation 
                        described in clause (i) without prior 
                        approval by the Secretary, but any such 
                        emergency regulation is subject to 
                        ratification by the Secretary after it 
                        is issued and shall be rescinded by the 
                        Administrator within 5 days (excluding 
                        Saturdays, Sundays, and legal public 
                        holidays) after issuance if the 
                        Secretary fails to ratify its issuance.
                          (iii) Any regulation that does not 
                        meet the criteria of clause (i), and 
                        any regulation or other action that is 
                        a routine or frequent action or a 
                        procedural action, may be issued by the 
                        Administrator without review or 
                        approval by the Secretary.
                          (iv) The Administrator shall submit a 
                        copy of any regulation requiring 
                        approval by the Secretary under clause 
                        (i) to the Secretary, who shall either 
                        approve it or return it to the 
                        Administrator with comments within 45 
                        days after receiving it.
                  (C) Periodic review.--
                          (i) Beginning on the date which is 3 
                        years after the date of the enactment 
                        of the Air Traffic Management System 
                        Performance Improvement Act of 1996, 
                        the Administrator shall review any 
                        unusually burdensome regulation issued 
                        by the Administrator after such date of 
                        enactment beginning not later than 3 
                        years after the effective date of the 
                        regulation to determine if the cost 
                        assumptions were accurate, the benefit 
                        of the regulations, and the need to 
                        continue such regulations in force in 
                        their present form.
                          (ii) The Administrator may identify 
                        for review under the criteria set forth 
                        in clause (i) unusually burdensome 
                        regulations that were issued before the 
                        date of the enactment of the Air 
                        Traffic Management System Performance 
                        Improvement Act of 1996 and that have 
                        been in force for more than 3 years.
                          (iii) For purposes of this 
                        subparagraph, the term ``unusually 
                        burdensome regulation'' means any 
                        regulation that results in the annual 
                        expenditure by State, local, and tribal 
                        governments in the aggregate, or by the 
                        private sector, of $25,000,000 or more 
                        (adjusted annually for inflation 
                        beginning with the year following the 
                        date of the enactment of the Air 
                        Traffic Management System Performance 
                        Act of 1996) in any year.
                          (iv) The periodic review of 
                        regulations may be performed by 
                        advisory committees and the Management 
                        Advisory Council established under 
                        subsection (p).
          (4) Definition of political appointee.--For purposes 
        of this subsection, the term ``political appointee'' 
        means any individual who--
                  (A) is employed in a position listed in 
                sections 5312 through 5316 of title 5 (relating 
                to the Executive Schedule);
                  (B) is a limited term appointee, limited 
                emergency appointee, or noncareer appointee in 
                the Senior Executive Service, as defined under 
                paragraphs (5), (6), and (7), respectively, of 
                section 3132(a) of title 5; or
                  (C) is employed in a position in the 
                executive branch of the Government of a 
                confidential or policy-determining character 
                under schedule C of subpart C of part 213 of 
                title 5 of the Code of Federal Regulations.
  (g) Duties and Powers of Administrator.--
          (1) Except as provided in paragraph (2) of this 
        subsection, the Administrator shall carry out--
                  (A) duties and powers of the Secretary of 
                Transportation under subsection (f) of this 
                section related to aviation safety (except 
                those related to transportation, packaging, 
                marking, or description of hazardous material) 
                and stated in sections 308(b), 1132(c) and (d), 
                40101(c), 40103(b), 40106(a), 40108, 40109(b), 
                40113(a), 40113(c), 40113(d), 40113(e), 
                40114(a), and 40119, chapter 445 (except 
                sections 44501(b), 44502(a)(2), 44502(a)(3), 
                44502(a)(4), 44503, 44506, 44509, 44510, 44514, 
                and 44515), chapter 447 (except sections 44717, 
                44718(a), 44718(b), 44719, 44720, 44721(b), 
                44722, and 44723), chapter 449 (except sections 
                44903(d), 44904, 44905, 44907-44911, 44913, 
                44915, and 44931-44934), chapter 451, chapter 
                453, sections 46104, 46301(d) and (h)(2), 
                46303(c), 46304-46308, 46310, 46311, and 46313-
                46316, chapter 465, and sections 47504(b) 
                (related to flight procedures), 47508(a), and 
                48107 of this title; and
                  (B) additional duties and powers prescribed 
                by the Secretary of Transportation.
          (2) In carrying out sections 40119, 44901, 44903(a)-
        (c) and (e), 44906, 44912, 44935-44937, 44938(a) and 
        (b), and 48107 of this title, paragraph (1)(A) of this 
        subsection does not apply to duties and powers vested 
        in the Director of Intelligence and Security by section 
        44931 of this title.
  (h) Section 40101(d) of this title applies to duties and 
powers specified in subsection (g)(1) of this section. Any of 
those duties and powers may be transferred to another part of 
the Department only when specifically provided by law or a 
reorganization plan submitted under chapter 9 of title 5. A 
decision of the Administrator in carrying out those duties or 
powers is administratively final.
  (i) The Deputy Administrator shall carry out duties and 
powers prescribed by the Administrator. The Deputy 
Administrator acts for the Administrator when the Administrator 
is absent or unable to serve, or when the office of the 
Administrator is vacant.
  (j) There is established within the Federal Aviation 
Administration an institute to conduct civil aeromedical 
research under section 44507 of this title. Such institute 
shall be known as the ``Civil Aeromedical Institute''. Research 
conducted by the institute should take appropriate advantage of 
capabilities of other government agencies, universities, or the 
private sector.
  (k) Authorization of Appropriations for Operations.--
          (1) In general.--There is authorized to be 
        appropriated to the Secretary of Transportation for 
        operations of the Administration--
                  (A) such sums as may be necessary for fiscal 
                year 2000;
                  (B) $6,592,235,000 for fiscal year 2001;
                  (C) $6,886,000,000 for fiscal year 2002; and
                  (D) $7,357,000,000 for fiscal year 2003. Such 
                sums shall remain available until expended.
          (2) Authorized expenditures.--Out of amounts 
        appropriated under paragraph (1), the following 
        expenditures are authorized:
                  (A) $450,000 for each of fiscal years 2000 
                through 2003 for wildlife hazard mitigation 
                measures and management of the wildlife strike 
                database of the Federal Aviation 
                Administration.
                  (B) $9,100,000 for the 3-fiscal-year period 
                beginning with fiscal year 2001 to support a 
                university consortium established to provide an 
                air safety and security management certificate 
                program, working cooperatively with the Federal 
                Aviation Administration and United States air 
                carriers, except that funds under this 
                subparagraph--
                          (i) may not be used for the 
                        construction of a building or other 
                        facility; and
                          (ii) may only be awarded on the basis 
                        of open competition.
                  (C) Such sums as may be necessary for fiscal 
                years 2000 through 2003 to support 
                infrastructure systems development for both 
                general aviation and the vertical flight 
                industry.
                  (D) Such sums as may be necessary for fiscal 
                years 2000 through 2003 to establish helicopter 
                approach procedures using current technologies 
                (such as the Global Positioning System) to 
                support all-weather, emergency medical service 
                for trauma patients.
                  (E) Such sums as may be necessary for fiscal 
                years 2000 through 2003 to revise existing 
                terminal and en route procedures and instrument 
                flight rules to facilitate the takeoff, flight, 
                and landing of tiltrotor aircraft and to 
                improve the national airspace system by 
                separating such aircraft from congested flight 
                paths of fixed-wing aircraft.
                  (F) $3,300,000 for fiscal year 2000 and 
                $3,000,000 for each of fiscal years 2001 
                through 2003 to implement the 1998 airport 
                surface operations safety action plan of the 
                Federal Aviation Administration.
                  (G) $9,100,000 for fiscal year 2001 to 
                support air safety efforts through payment of 
                United States membership obligations in the 
                International Civil Aviation Organization, to 
                be paid as soon as practicable.
                  (H) Such sums as may be necessary for fiscal 
                years 2000 through 2003 for the Secretary to 
                hire additional inspectors in order to enhance 
                air cargo security programs.
                  (I) Such sums as may be necessary for fiscal 
                years 2000 through 2003 to develop and improve 
                training programs (including model training 
                programs and curriculum) for security screening 
                personnel at airports that will be used by 
                airlines to meet regulatory requirements 
                relating to the training and testing of such 
                personnel.
  (l) Personnel and Services.--
          (1) Officers and employees.--Except as provided in 
        subsections (a) and (g) of section 40122, the 
        Administrator is authorized, in the performance of the 
        functions of the Administrator, to appoint, transfer, 
        and fix the compensation of such officers and 
        employees, including attorneys, as may be necessary to 
        carry out the functions of the Administrator and the 
        Administration. In fixing compensation and benefits of 
        officers and employees, the Administrator shall not 
        engage in any type of bargaining, except to the extent 
        provided for in section 40122(a), nor shall the 
        Administrator be bound by any requirement to establish 
        such compensation or benefits at particular levels.
          (2) Experts and consultants.--The Administrator is 
        authorized to obtain the services of experts and 
        consultants in accordance with section 3109 of title 5.
          (3) Transportation and per diem expenses.--The 
        Administrator is authorized to pay transportation 
        expenses, and per diem in lieu of subsistence expenses, 
        in accordance with chapter 57 of title 5.
          (4) Use of personnel from other agencies.--The 
        Administrator is authorized to utilize the services of 
        personnel of any other Federal agency (as such term is 
        defined under section 551(1) of title 5).
          (5) Voluntary services.--
                  (A) General rule.--In exercising the 
                authority to accept gifts and voluntary 
                services under section 326 of this title, and 
                without regard to section 1342 of title 31, the 
                Administrator may not accept voluntary and 
                uncompensated services if such services are 
                used to displace Federal employees employed on 
                a full-time, part-time, or seasonal basis.
                  (B) Incidental expenses.--The Administrator 
                is authorized to provide for incidental 
                expenses, including transportation, lodging, 
                and subsistence, for volunteers who provide 
                voluntary services under this subsection.
                  (C) Limited treatment as federal employees.--
                An individual who provides voluntary services 
                under this subsection shall not be considered a 
                Federal employee for any purpose other than for 
                purposes of chapter 81 of title 5, relating to 
                compensation for work injuries, and chapter 171 
                of title 28, relating to tort claims.
          (6) Contracts.--The Administrator is authorized to 
        enter into and perform such contracts, leases, 
        cooperative agreements, or other transactions as may be 
        necessary to carry out the functions of the 
        Administrator and the Administration. The Administrator 
        may enter into such contracts, leases, cooperative 
        agreements, and other transactions with any Federal 
        agency (as such term is defined in section 551(1) of 
        title 5) or any instrumentality of the United States, 
        any State, territory, or possession, or political 
        subdivision thereof, any other governmental entity, or 
        any person, firm, association, corporation, or 
        educational institution, on such terms and conditions 
        as the Administrator may consider appropriate.
  (m) Cooperation by Administrator.--With the consent of 
appropriate officials, the Administrator may, with or without 
reimbursement, use or accept the services, equipment, 
personnel, and facilities of any other Federal agency (as such 
term is defined in section 551(1) of title 5) and any other 
public or private entity. The Administrator may also cooperate 
with appropriate officials of other public and private agencies 
and instrumentalities concerning the use of services, 
equipment, personnel, and facilities. The head of each Federal 
agency shall cooperate with the Administrator in making the 
services, equipment, personnel, and facilities of the Federal 
agency available to the Administrator. The head of a Federal 
agency is authorized, notwithstanding any other provision of 
law, to transfer to or to receive from the Administration, 
without reimbursement, supplies, personnel, services, and 
equipment other than administrative supplies or equipment.
  (n) Acquisition.--
          (1) In general.--The Administrator is authorized--
                  (A) to acquire (by purchase, lease, 
                condemnation, or otherwise), construct, 
                improve, repair, operate, and maintain--
                          (i) air traffic control facilities 
                        and equipment;
                          (ii) research and testing sites and 
                        facilities; and
                          (iii) such other real and personal 
                        property (including office space and 
                        patents), or any interest therein, 
                        within and outside the continental 
                        United States as the Administrator 
                        considers necessary;
                  (B) to lease to others such real and personal 
                property; and
                  (C) to provide by contract or otherwise for 
                eating facilities and other necessary 
                facilities for the welfare of employees of the 
                Administration at the installations of the 
                Administration, and to acquire, operate, and 
                maintain equipment for these facilities.
          (2) Title.--Title to any property or interest therein 
        acquired pursuant to this subsection shall be held by 
        the Government of the United States.
  (o) Transfers of Funds.--The Administrator is authorized to 
accept transfers of unobligated balances and unexpended 
balances of funds appropriated to other Federal agencies (as 
such term is defined in section 551(1) of title 5) to carry out 
functions transferred by law to the Administrator or functions 
transferred pursuant to law to the Administrator on or after 
the date of the enactment of the Air Traffic Management System 
Performance Improvement Act of 1996.
  (p) Management Advisory Council.--
          (1) Establishment.--Within 3 months after the date of 
        the enactment of the Air Traffic Management System 
        Performance Improvement Act of 1996, the Administrator 
        shall establish an advisory council which shall be 
        known as the Federal Aviation Management Advisory 
        Council (in this subsection referred to as the 
        ``Council''). With respect to Administration 
        management, policy, spending, funding, and regulatory 
        matters affecting the aviation industry, the Council 
        may submit comments, recommended modifications, and 
        dissenting views to the Administrator. The 
        Administrator shall include in any submission to 
        Congress, the Secretary, or the general public, and in 
        any submission for publication in the Federal Register, 
        a description of the comments, recommended 
        modifications, and dissenting views received from the 
        Council, together with the reasons for any differences 
        between the views of the Council and the views or 
        actions of the Administrator.
          (2) Membership.--The Council shall consist of 18 
        members, who shall consist of--
                  (A) a designee of the Secretary of 
                Transportation;
                  (B) a designee of the Secretary of Defense;
                  (C) 10 members representing aviation 
                interests, appointed by--
                          (i) in the case of initial 
                        appointments to the Council, the 
                        President by and with the advice and 
                        consent of the Senate; and
                          (ii) in the case of subsequent 
                        appointments to the Council, the 
                        Secretary of Transportation;
                  (D) 1 member appointed, from among 
                individuals who are the leaders of their 
                respective unions of air traffic control system 
                employees, by--
                          (i) in the case of initial 
                        appointments to the Council, the 
                        President by and with the advice and 
                        consent of the Senate; and
                          (ii) in the case of subsequent 
                        appointments to the Council, the 
                        Secretary of Transportation; and
                  (E) 5 members appointed by the Secretary 
                after consultation with the Committee on 
                Transportation and Infrastructure of the House 
                of Representatives and the Committee on 
                Commerce, Science, and Transportation of the 
                Senate.
          (3) Qualifications.--
                  (A) No federal officer or employee.--No 
                member appointed under paragraph (2)(C) or 2(E) 
                may serve as an officer or employee of the 
                United States Government while serving as a 
                member of the Council.
                  (B) Air traffic services subcommittee.--
                Members appointed under paragraph (2)(E) 
                shall--
                          (i) have a fiduciary responsibility 
                        to represent the public interest;
                          (ii) be citizens of the United 
                        States; and
                          (iii) be appointed without regard to 
                        political affiliation and solely on the 
                        basis of their professional experience 
                        and expertise in one or more of the 
                        following areas:
                                  (I) Management of large 
                                service organizations.
                                  (II) Customer service.
                                  (III) Management of large 
                                procurements.
                                  (IV) Information and 
                                communications technology.
                                  (V) Organizational 
                                development.
                                  (VI) Labor relations. At 
                                least one of such members 
                                should have a background in 
                                managing large organizations 
                                successfully. In the aggregate, 
                                such members should 
                                collectively bring to bear 
                                expertise in all of the areas 
                                described in subclauses (I) 
                                through (VI).
                  (C) Prohibitions on members of 
                subcommittee.--No member appointed under 
                paragraph (2)(E) may--
                          (i) have a pecuniary interest in, or 
                        own stock in or bonds of, an aviation 
                        or aeronautical enterprise, except an 
                        interest in a diversified mutual fund 
                        or an interest that is exempt from the 
                        application of section 208 of title 18;
                          (ii) engage in another business 
                        related to aviation or aeronautics; or
                          (iii) be a member of any organization 
                        that engages, as a substantial part of 
                        its activities, in activities to 
                        influence aviation-related legislation.
          (4) Functions.--
                  (A) In general.--
                          (i) The Council shall provide advice 
                        and counsel to the Administrator on 
                        issues which affect or are affected by 
                        the operations of the Administrator. 
                        The Council shall function as an 
                        oversight resource for management, 
                        policy, spending, and regulatory 
                        matters under the jurisdiction of the 
                        Administration.
                          (ii) The Council shall review the 
                        rulemaking cost-benefit analysis 
                        process and develop recommendations to 
                        improve the analysis and ensure that 
                        the public interest is fully protected.
                          (iii) The Council shall review the 
                        process through which the 
                        Administration determines to use 
                        advisory circulars and service 
                        bulletins.
                  (B) Meetings.--The Council shall meet on a 
                regular and periodic basis or at the call of 
                the chairman or of the Administrator.
                  (C) Access to documents and staff.--The 
                Administration may give the Council appropriate 
                access to relevant documents and personnel of 
                the Administration, and the Administrator shall 
                make available, consistent with the authority 
                to withhold commercial and other proprietary 
                information under section 552 of title 5 
                (commonly known as the ``Freedom of Information 
                Act''), cost data associated with the 
                acquisition and operation of air traffic 
                service systems. Any member of the Council who 
                receives commercial or other proprietary data 
                from the Administrator shall be subject to the 
                provisions of section 1905 of title 18, 
                pertaining to unauthorized disclosure of such 
                information.
          (5) Federal Advisory Committee Act not to apply. The 
        Federal Advisory Committee Act (5 U.S.C. App.) does not 
        apply to the Council or such aviation rulemaking 
        committees as the Administrator shall designate.
          (6) Administrative matters.--
                  (A) Terms of members appointed under 
                paragraph (2)(c).--Members of the Council 
                appointed under paragraph (2)(C) shall be 
                appointed for a term of 3 years. Of the members 
                first appointed by the President under 
                paragraph (2)(C)--
                          (i) 3 shall be appointed for terms of 
                        1 year;
                          (ii) 4 shall be appointed for terms 
                        of 2 years; and
                          (iii) 3 shall be appointed for terms 
                        of 3 years.
                  (B) Term for air traffic control 
                representative.--The member appointed under 
                paragraph (2)(D) shall be appointed for a term 
                of 3 years, except that the term of such 
                individual shall end whenever the individual no 
                longer meets the requirements of paragraph 
                (2)(D).
                  (C) Terms for air traffic services 
                subcommittee members.--The member appointed 
                under paragraph (2)(E) shall be appointed for a 
                term of 5 years, except that of the members 
                first appointed under paragraph (2)(E)--
                          (i) 2 members shall be appointed for 
                        a term of 3 years;
                          (ii) 2 members shall be appointed for 
                        a term of 4 years; and
                          (iii) 1 member shall be appointed for 
                        a term of 5 years.
                  (D) Reappointment.--An individual may not be 
                appointed under paragraph (2)(E) to more than 
                two 5-year terms.
                  (E) Vacancy.--Any vacancy on the Council 
                shall be filled in the same manner as the 
                original appointment, except that any vacancy 
                caused by a member appointed by the President 
                under paragraph (2)(C)(i) shall be filled by 
                the Secretary in accordance with paragraph 
                (2)(C)(ii). Any member appointed to fill a 
                vacancy occurring before the expiration of the 
                term for which the member's predecessor was 
                appointed shall be appointed for the remainder 
                of that term.
                  (F) Continuation in office.--A member whose 
                term expires shall continue to serve until the 
                date on which the member's successor takes 
                office.
                  (G) Removal.--Any member of the Council 
                appointed under paragraph (2)(D) may be removed 
                for cause by the President or Secretary whoever 
                makes the appointment. Any member of the 
                Council appointed under paragraph (2)(E) may be 
                removed for cause by the Secretary.
                  (H) Claims against members of subcommittee.--
                          (i) In general.--A member appointed 
                        under paragraph (2)(E) shall have no 
                        personal liability under Federal law 
                        with respect to any claim arising out 
                        of or resulting from an act or omission 
                        by such member within the scope of 
                        service as a member of the Air Traffic 
                        Services Subcommittee.
                          (ii) Effect on other law.--This 
                        subparagraph shall not be construed--
                                  (I) to affect any other 
                                immunity or protection that may 
                                be available to a member of the 
                                Subcommittee under applicable 
                                law with respect to such 
                                transactions;
                                  (II) to affect any other 
                                right or remedy against the 
                                United States under applicable 
                                law; or
                                  (III) to limit or alter in 
                                any way the immunities that are 
                                available under applicable law 
                                for Federal officers and 
                                employees.
                  (I) Ethical considerations.--
                          (i) Financial disclosure.--During the 
                        entire period that an individual 
                        appointed under paragraph (2)(E) is a 
                        member of the Subcommittee, such 
                        individual shall be treated as serving 
                        as an officer or employee referred to 
                        in section 101(f) of the Ethics in 
                        Government Act of 1978 for purposes of 
                        title I of such Act; except that 
                        section 101(d) of such Act shall apply 
                        without regard to the number of days of 
                        service in the position.
                          (ii) Restrictions on post-
                        employment.--For purposes of section 
                        207(c) of title 18, an individual 
                        appointed under paragraph (2)(E) shall 
                        be treated as an employee referred to 
                        in section 207(c)(2)(A)(i) of such 
                        title during the entire period the 
                        individual is a member of the 
                        Subcommittee; except that subsections 
                        (c)(2)(B) and (f) of section 207 of 
                        such title shall not apply.
                  (J) Chairman; vice chairman.--The Council 
                shall elect a chair and a vice chair from among 
                the members appointed under paragraph (2)(C), 
                each of whom shall serve for a term of 1 year. 
                The vice chair shall perform the duties of the 
                chairman in the absence of the chairman.
                  (K) Travel and per diem.--Each member of the 
                Council shall be paid actual travel expenses, 
                and per diem in lieu of subsistence expenses 
                when away from his or her usual place of 
                residence, in accordance with section 5703 of 
                title 5.
                  (L) Detail of personnel from the 
                administration.--The Administrator shall make 
                available to the Council such staff, 
                information, and administrative services and 
                assistance as may reasonably be required to 
                enable the Council to carry out its 
                responsibilities under this subsection.
          (7) Air traffic services subcommittee.--
                  (A) In general.--The Management Advisory 
                Council shall have an air traffic services 
                subcommittee (in this paragraph referred to as 
                the ``Subcommittee'') composed of the five 
                members appointed under paragraph (2)(E).
                  (B) General responsibilities.--
                          (i) Oversight.--The Subcommittee 
                        shall oversee the administration, 
                        management, conduct, direction, and 
                        supervision of the air traffic control 
                        system.
                          (ii) Confidentiality.--The 
                        Subcommittee shall ensure that 
                        appropriate confidentiality is 
                        maintained in the exercise of its 
                        duties.
                  (C) Specific responsibilities.--The 
                Subcommittee shall have the following specific 
                responsibilities:
                          (i) Strategic plans.--To review, 
                        approve, and monitor the strategic plan 
                        for the air traffic control system, 
                        including the establishment of--
                                  (I) a mission and objectives;
                                  (II) standards of performance 
                                relative to such mission and 
                                objectives, including safety, 
                                efficiency, and productivity; 
                                and
                                  (III) annual and long-range 
                                strategic plans.
                          (ii) Modernization and improvement.--
                        To review and approve--
                                  (I) methods to accelerate air 
                                traffic control modernization 
                                and improvements in aviation 
                                safety related to air traffic 
                                control; and
                                  (II) procurements of air 
                                traffic control equipment in 
                                excess of $100,000,000.
                          (iii) Operational plans.--To review 
                        the operational functions of the air 
                        traffic control system, including--
                                  (I) plans for modernization 
                                of the air traffic control 
                                system;
                                  (II) plans for increasing 
                                productivity or implementing 
                                cost-saving measures; and
                                  (III) plans for training and 
                                education.
                          (iv) Management.--To--
                                  (I) review and approve the 
                                Administrator's appointment of 
                                a Chief Operating Officer under 
                                section 106(r);
                                  (II) review the 
                                Administrator's selection, 
                                evaluation, and compensation of 
                                senior executives of the 
                                Administration who have program 
                                management responsibility over 
                                significant functions of the 
                                air traffic control system;
                                  (III) review and approve the 
                                Administrator's plans for any 
                                major reorganization of the 
                                Administration that would 
                                impact on the management of the 
                                air traffic control system;
                                  (IV) review and approve the 
                                Administrator's cost accounting 
                                and financial management 
                                structure and technologies to 
                                help ensure efficient and cost-
                                effective air traffic control 
                                operation; and
                                  (V) review the performance 
                                and compensation of managers 
                                responsible for major 
                                acquisition projects, including 
                                the ability of the managers to 
                                meet schedule and budget 
                                targets.
                          (v) Budget.--To--
                                  (I) review and approve the 
                                budget request of the 
                                Administration related to the 
                                air traffic control system 
                                prepared by the Administrator;
                                  (II) submit such budget 
                                request to the Secretary; and
                                  (III) ensure that the budget 
                                request supports the annual and 
                                long-range strategic plans. The 
                                Secretary shall submit the 
                                budget request referred to in 
                                clause (v)(II) for any fiscal 
                                year to the President who shall 
                                transmit such request, without 
                                revision, to the Committees on 
                                Transportation and 
                                Infrastructure and 
                                Appropriations of the House of 
                                Representatives and the 
                                Committees on Commerce, 
                                Science, and Transportation and 
                                Appropriations of the Senate, 
                                together with the President's 
                                annual budget request for the 
                                Federal Aviation Administration 
                                for such fiscal year.
                  (D) Subcommittee personnel matters.--
                          (i) Compensation of members.--Each 
                        member of the Subcommittee shall be 
                        compensated at a rate of $25,000 per 
                        year.
                          (ii) Compensation of chairperson.--
                        Notwithstanding clause (i), the 
                        chairperson of the Subcommittee shall 
                        be compensated at a rate of $40,000 per 
                        year.
                          (iii) Staff.--The chairperson of the 
                        Subcommittee may appoint and terminate 
                        any personnel that may be necessary to 
                        enable the Subcommittee to perform its 
                        duties.
                          (iv) Procurement of temporary and 
                        intermittent services.--The chairperson 
                        of the Subcommittee may procure 
                        temporary and intermittent services 
                        under section 3109(b) of title 5, 
                        United States Code.
                  (E) Administrative matters.--
                          (i) Term of chair.--The members of 
                        the Subcommittee shall elect for a 2-
                        year term a chairperson from among the 
                        members of the Subcommittee.
                          (ii) Powers of chair.--Except as 
                        otherwise provided by a majority vote 
                        of the Subcommittee, the powers of the 
                        chairperson shall include--
                                  (I) establishing committees;
                                  (II) setting meeting places 
                                and times;
                                  (III) establishing meeting 
                                agendas; and
                                  (IV) developing rules for the 
                                conduct of business.
                          (iii) Meetings.--The Subcommittee 
                        shall meet at least quarterly and at 
                        such other times as the chairperson 
                        determines appropriate.
                          (iv) Quorum.--Three members of the 
                        Subcommittee shall constitute a quorum. 
                        A majority of members present and 
                        voting shall be required for the 
                        Subcommittee to take action.
                  (F) Reports.--
                          (i) Annual.--The Subcommittee shall 
                        each year report with respect to the 
                        conduct of its responsibilities under 
                        this title to the Administrator, the 
                        Council, the Committee on 
                        Transportation and Infrastructure of 
                        the House of Representatives, and the 
                        Committee on Commerce, Science, and 
                        Transportation of the Senate.
                          (ii) Additional report.--If a 
                        determination by the Subcommittee under 
                        subparagraph (B)(i) that the 
                        organization and operation of the air 
                        traffic control system are not allowing 
                        the Administration to carry out its 
                        mission, the Subcommittee shall report 
                        such determination to the 
                        Administrator, the Council, the 
                        Committee on Transportation and 
                        Infrastructure of the House of 
                        Representatives, and the Committee on 
                        Commerce, Science, and Transportation 
                        of the Senate.
                          (iii) Action of administrator on 
                        report.--Not later than 60 days after 
                        the date of a report of the 
                        Subcommittee under this subparagraph, 
                        the Administrator shall take action 
                        with respect to such report. If the 
                        Administrator overturns a 
                        recommendation of the Subcommittee, the 
                        Administrator shall report such action 
                        to the President, the Committee on 
                        Transportation and Infrastructure of 
                        the House of Representatives, and the 
                        Committee on Commerce, Science, and 
                        Transportation of the Senate.
                          (iv) Comptroller general's report.--
                        Not later than April 30, 2003, the 
                        Comptroller General of the United 
                        States shall transmit to the Committee 
                        on Transportation and Infrastructure of 
                        the House of Representatives and the 
                        Committee on Commerce, Science, and 
                        Transportation of the Senate a report 
                        on the success of the Subcommittee in 
                        improving the performance of the air 
                        traffic control system.
          (8) Air traffic control system defined.--In this 
        section, the term ``air traffic control system'' has 
        the meaning such term has under section 40102(a).
  (q) Aircraft Noise Ombudsman.--
          (1) Establishment.--There shall be in the 
        Administration an Aircraft Noise Ombudsman.
          (2) General duties and responsibilities.--The 
        Ombudsman shall--
                  (A) be appointed by the Administrator;
                  (B) serve as a liaison with the public on 
                issues regarding aircraft noise; and
                  (C) be consulted when the Administration 
                proposes changes in aircraft routes so as to 
                minimize any increases in aircraft noise over 
                populated areas.
          (3) Number of full-time equivalent employees.--The 
        appointment of an Ombudsman under this subsection shall 
        not result in an increase in the number of full-time 
        equivalent employees in the Administration.
  (r) Chief Operating Officer.--
          (1) In general.--
                  (A) Appointment.--There shall be a Chief 
                Operating Officer for the air traffic control 
                system to be appointed by the Administrator, 
                with the approval of the Air Traffic Services 
                Subcommittee of the Aviation Management 
                Advisory Council. The Chief Operating Officer 
                shall report directly to the Administrator and 
                shall be subject to the authority of the 
                Administrator.
                  (B) Qualifications.--The Chief Operating 
                Officer shall have a demonstrated ability in 
                management and knowledge of or experience in 
                aviation.
                  (C) Term.--The Chief Operating Officer shall 
                be appointed for a term of 5 years.
                  (D) Removal.--The Chief Operating Officer 
                shall serve at the pleasure of the 
                Administrator, except that the Administrator 
                shall make every effort to ensure stability and 
                continuity in the leadership of the air traffic 
                control system.
                  (E) Vacancy.--Any individual appointed to 
                fill a vacancy in the position of Chief 
                Operating Officer occurring before the 
                expiration of the term for which the 
                individual's predecessor was appointed shall be 
                appointed for the remainder of that term.
          [(2) Compensation.--
                  [(A) In general.--The Chief Operating Officer 
                shall be paid at an annual rate of basic pay to 
                be determined by the Administrator, with the 
                approval of the Air Traffic Services 
                Subcommittee of the Aviation Management 
                Advisory Council. The annual rate may not 
                exceed the annual compensation paid under 
                section 102 of title 3. The Chief Operating 
                Officer shall be subject to the post-employment 
                provisions of section 207 of title 18 as if the 
                position of Chief Operating Officer were 
                described in section 207(c)(2)(A)(i) of that 
                title.
                  [(B) Bonus.--In addition to the annual rate 
                of basic pay authorized by subparagraph (A), 
                the Chief Operating Officer may receive a bonus 
                for any calendar year not to exceed 30 percent 
                of the annual rate of basic pay, based upon the 
                Administrator's evaluation of the Chief 
                Operating Officer's performance in relation to 
                the performance goals set forth in the 
                performance agreement described paragraph (3).]
          (2) Compensation.--The Chief Operating Officer shall 
        be paid at an annual rate of basic pay determined by 
        the Secretary of Transportation before the appointment 
        and without regard to any other provision of law. The 
        Chief Operating Officer shall be subject to the post-
        employment provisions of section 207 of title 18 as if 
        the position of Chief Operating Officer were described 
        in section 207(c)(2)(A)(i) of that title.
          (3) Annual performance agreement.--The Administrator 
        and the Chief Operating Officer, in consultation with 
        the Air Traffic Control Subcommittee of the Aviation 
        Management Advisory Committee, shall enter into an 
        annual performance agreement that sets forth measurable 
        organization and individual goals for the Chief 
        Operating Officer in key operational areas. The 
        agreement shall be subject to review and renegotiation 
        on an annual basis.
          (4) Annual performance report.--The Chief Operating 
        Officer shall prepare and transmit to the Secretary of 
        Transportation and Congress an annual management report 
        containing such information as may be prescribed by the 
        Secretary.
          (5) Responsibilities.--The Administrator may delegate 
        to the Chief Operating Officer, or any other authority 
        within the Administration responsibilities, including 
        the following:
                  (A) Strategic plans.--To develop a strategic 
                plan of the Administration for the air traffic 
                control system, including the establishment 
                of--
                          (i) a mission and objectives;
                          (ii) standards of performance 
                        relative to such mission and 
                        objectives, including safety, 
                        efficiency, and productivity;
                          (iii) annual and long-range strategic 
                        plans; and
                          (iv) methods of the Administration to 
                        accelerate air traffic control 
                        modernization and improvements in 
                        aviation safety related to air traffic 
                        control.
                  (B) Operations.--To review the operational 
                functions of the Administration, including--
                          (i) modernization of the air traffic 
                        control system;
                          (ii) increasing productivity or 
                        implementing cost-saving measures; and
                          (iii) training and education.
                  (C) Budget.--To--
                          (i) develop a budget request of the 
                        Administration related to the air 
                        traffic control system prepared by the 
                        Administrator;
                          (ii) submit such budget request to 
                        the Administrator and the Secretary of 
                        Transportation; and
                          (iii) ensure that the budget request 
                        supports the annual and long-range 
                        strategic plans developed under 
                        subparagraph (A) of this subsection.

                        TITLE 49. TRANSPORTATION

                    SUBTITLE VII. AVIATION PROGRAMS

                    PART A. AIR COMMERCE AND SAFETY

                           SUBPART I. GENERAL

                    CHAPTER 401. GENERAL PROVISIONS

Sec. 40117. Passenger facility fees

  (a) Definitions.--In this section, the following definitions 
apply:
          (1) Airport, commercial service airport, and public 
        agency.--The terms ``airport'', ``commercial service 
        airport'', and ``public agency'' have the meaning those 
        terms have under section 47102.
          (2) Eligible agency.--The term ``eligible agency'' 
        means a public agency that controls a commercial 
        service airport.
          (3) Eligible airport-related project.--The term 
        ``eligible airport-related project'' means any of the 
        following projects:
                  (A) A project for airport development or 
                airport planning under subchapter I of chapter 
                471.
                  (B) A project for terminal development 
                described in section 47110(d).
                  (C) for costs of terminal development 
                referred to in subparagraph (B) incurred after 
                August 1, 1986, at an airport that did not have 
                more than .25 percent of the total annual 
                passenger boardings in the United States in the 
                most recent calendar year for which data is 
                available and at which total passenger 
                boardings declined by at least 16 percent 
                between calendar year 1989 and calendar year 
                1997.
                  (D) A project for airport noise capability 
                planning under section 47505.
                  (E) A project to carry out noise 
                compatibility measures eligible for assistance 
                under section 47504, whether or not a program 
                for those measures has been approved under 
                section 47504.
                  [(F) A project for constructing gates and 
                related areas at which passengers board or exit 
                aircraft. In the case of a project required to 
                enable additional air service by an air carrier 
                with less than 50 percent of the annual 
                passenger boardings at an airport, the project 
                for constructing gates and related areas may 
                include structural foundations and floor 
                systems, exterior building walls and load-
                bearing interior columns or walls, windows, 
                door and roof systems, building utilities 
                (including heating, air conditioning, 
                ventilation, plumbing, and electrical service), 
                and aircraft fueling facilities adjacent to the 
                gate.]
                  (F) A project for constructing gates and 
                related areas at which passengers board or exit 
                aircraft.
                  (G) In the case of a project required to 
                enable air service by a competing air carrier 
                at a large hub airport (as defined in section 
                41731):
                          (i) A project for constructing gates 
                        and related areas may include 
                        structural foundations and floor 
                        systems, exterior building walls and 
                        load-bearing interior columns or walls, 
                        windows, door and roof systems, 
                        building utilities (including heating, 
                        air conditioning, ventilation, 
                        plumbing, and electrical service) 
                        above, below, and within the footprint 
                        of the gates and related areas.
                          (ii) Revenue-producing areas in the 
                        remainder of the terminal building 
                        allocable to the competing air carrier, 
                        and aircraft fueling facilities 
                        adjacent to the gate, may be included 
                        in an eligible airport-related project 
                        to the extent the facilities to be 
                        constructed in such areas are for the 
                        basic accommodation of air passengers 
                        and not for general commercial retail 
                        sales, rental car facilities, or 
                        passenger lodging. For purposes of this 
                        clause, the determination of what 
                        revenue-producing areas in the terminal 
                        building are allocable to the competing 
                        air carrier shall be based on the 
                        relationship that the square footage of 
                        the competing air carrier's gates and 
                        related areas bears to the square 
                        footage of all gates and related areas 
                        in the terminal building.
          (4) Passenger facility fee.--The term ``passenger 
        facility fee'' means a fee imposed under this section.
          (5) Passenger facility revenue.--The term ``passenger 
        facility revenue'' means revenue derived from a 
        passenger facility fee.
          (6) Competing air carrier.--The term ``competing air 
        carrier'' means an air carrier that--
                  (A) is initiating new air service or 
                expanding existing air service at a large hub 
                airport (as defined in section 41731); and
                  (B) is not an air carrier described in 
                section 47106(f)(3)(B) at that airport.
  (b) General Authority.--
          (1) The Secretary of Transportation may authorize 
        under this section an eligible agency to impose a 
        passenger facility fee of $1, $2, or $3 on each paying 
        passenger of an air carrier or foreign air carrier 
        boarding an aircraft at an airport the agency controls 
        to finance an eligible airport-related project, 
        including making payments for debt service on 
        indebtedness incurred to carry out the project, to be 
        carried out in connection with the airport or any other 
        airport the agency controls.
          (2) A State, political subdivision of a State, or 
        authority of a State or political subdivision that is 
        not the eligible agency may not regulate or prohibit 
        the imposition or collection of a passenger facility 
        fee or the use of the passenger facility revenue.
          (3) A passenger facility fee may be imposed on a 
        passenger of an air carrier or foreign air carrier 
        originating or connecting at the commercial service 
        airport that the agency controls.
          (4) In lieu of authorizing a fee under paragraph (1), 
        the Secretary may authorize under this section an 
        eligible agency to impose a passenger facility fee of 
        $4.00 or $4.50 on each paying passenger of an air 
        carrier or foreign air carrier boarding an aircraft at 
        an airport the agency controls to finance an eligible 
        airport-related project, including making payments for 
        debt service on indebtedness incurred to carry out the 
        project, if the Secretary finds--
                  (A) in the case of an airport that has more 
                than .25 percent of the total number of annual 
                boardings in the United States, that the 
                project will make a significant contribution to 
                improving air safety and security, increasing 
                competition among air carriers, reducing 
                current or anticipated congestion, or reducing 
                the impact of aviation noise on people living 
                near the airport; and
                  (B) that the project cannot be paid for from 
                funds reasonably expected to be available for 
                the programs referred to in section 48103.
  (c) Applications.--
          (1) An eligible agency must submit to the Secretary 
        an application for authority to impose a passenger 
        facility fee. The application shall contain information 
        and be in the form that the Secretary may require by 
        regulation.
          (2) Before submitting an application, the eligible 
        agency must provide reasonable notice to, and an 
        opportunity for consultation with, air carriers and 
        foreign air carriers operating at the airport. The 
        Secretary shall prescribe regulations that define 
        reasonable notice and contain at least the following 
        requirements:
                  (A) The agency must provide written notice of 
                individual projects being considered for 
                financing by a passenger facility fee and the 
                date and location of a meeting to present the 
                projects to air carriers and foreign air 
                carriers operating at the airport.
                  (B) Not later than 30 days after written 
                notice is provided under subparagraph (A) of 
                this paragraph, each air carrier and foreign 
                air carrier operating at the airport must 
                provide to the agency written notice of receipt 
                of the notice. Failure of a carrier to provide 
                the notice may be deemed certification of 
                agreement with the project by the carrier under 
                subparagraph (D) of this paragraph.
                  (C) Not later than 45 days after written 
                notice is provided under subparagraph (A) of 
                this paragraph, the agency must conduct a 
                meeting to provide air carriers and foreign air 
                carriers with descriptions of projects and 
                justifications and a detailed financial plan 
                for projects.
                  (D) Not later than 30 days after the meeting, 
                each air carrier and foreign air carrier must 
                provide to the agency certification of 
                agreement or disagreement with projects (or 
                total plan for the projects). Failure to 
                provide the certification is deemed 
                certification of agreement with the project by 
                the carrier. A certification of disagreement is 
                void if it does not contain the reasons for the 
                disagreement.
          (3) After receiving an application, the Secretary 
        shall provide notice and an opportunity to air 
        carriers, foreign air carriers, and other interested 
        persons to comment on the application. The Secretary 
        shall make a final decision on the application not 
        later than 120 days after receiving it.
  (d) Limitations on Approving Applications.--The Secretary may 
approve an application that an eligible agency has submitted 
under subsection (c) of this section to finance a specific 
project only if the Secretary finds, based on the application, 
that--
          (1) the amount and duration of the proposed passenger 
        facility fee will result in revenue (including interest 
        and other returns on the revenue) that is not more than 
        the amount necessary to finance the specific project;
          (2) each project is an eligible airport-related 
        project that will--
                  (A) preserve or enhance capacity, safety, or 
                security of the national air transportation 
                system;
                  (B) reduce noise resulting from an airport 
                that is part of the system; or
                  (C) provide an opportunity for enhanced 
                competition between or among air carriers and 
                foreign air carriers;
          (3) the application includes adequate justification 
        for each of the specific projects; and
          (4) in the case of an application to impose a fee of 
        more than $3.00 for an eligible surface transportation 
        or terminal project, the agency has made adequate 
        provision for financing the airside needs of the 
        airport, including runways, taxiways, aprons, and 
        aircraft gates.
  (e) Limitations on Imposing Fees.--
          (1) An eligible agency may impose a passenger 
        facility fee only--
                  (A) if the Secretary approves an application 
                that the agency has submitted under subsection 
                (c) of this section; and
                  (B) subject to terms the Secretary may 
                prescribe to carry out the objectives of this 
                section.
          (2) A passenger facility fee may not be collected 
        from a passenger--
                  (A) for more than 2 boardings on a one-way 
                trip or a trip in each direction of a round 
                trip;
                  (B) for the boarding to an eligible place 
                under subchapter II of chapter 417 of this 
                title for which essential air service 
                compensation is paid under subchapter II;
                  (C) enplaning at an airport if the passenger 
                did not pay for the air transportation which 
                resulted in such enplanement, including any 
                case in which the passenger obtained the ticket 
                for the air transportation with a frequent 
                flier award coupon without monetary payment;
                  (D) on flights, including flight segments, 
                between 2 or more points in Hawaii; and
                  (E) in Alaska aboard an aircraft having a 
                seating capacity of less than 60 passengers.
  (f) Limitations on Contracts, Leases, and Use Agreements.--
          (1) A contract between an air carrier or foreign air 
        carrier and an eligible agency made at any time may not 
        impair the authority of the agency to impose a 
        passenger facility fee or to use the passenger facility 
        revenue as provided in this section.
          (2) A project financed with a passenger facility fee 
        may not be subject to an exclusive long-term lease or 
        use agreement of an air carrier or foreign air carrier, 
        as defined by regulations of the Secretary.
          (3) A lease or use agreement of an air carrier or 
        foreign air carrier related to a project whose 
        construction or expansion was financed with a passenger 
        facility fee may not restrict the eligible agency from 
        financing, developing, or assigning new capacity at the 
        airport with passenger facility revenue.
  (g) Treatment of Revenue.--
          (1) Passenger facility revenue is not airport revenue 
        for purposes of establishing a price under a contract 
        between an eligible agency and an air carrier or 
        foreign air carrier.
          (2) An eligible agency may not include in its price 
        base the part of the capital costs of a project paid 
        for by using passenger facility revenue to establish a 
        price under a contract between the agency and an air 
        carrier or foreign air carrier.
          (3) For a project for terminal development, gates and 
        related areas, or a facility occupied or used by at 
        least one air carrier or foreign air carrier on an 
        exclusive or preferential basis, a price payable by an 
        air carrier or foreign air carrier using the facilities 
        must at least equal the price paid by an air carrier or 
        foreign air carrier using a similar facility at the 
        airport that was not financed with passenger facility 
        revenue.
          (4) Passenger facility revenues that are held by an 
        air carrier or an agent of the carrier after collection 
        of a passenger facility fee constitute a trust fund 
        that is held by the air carrier or agent for the 
        beneficial interest of the eligible agency imposing the 
        fee. Such carrier or agent holds neither legal nor 
        equitable interest in the passenger facility revenues 
        except for any handling fee or retention of interest 
        collected on unremitted proceeds as may be allowed by 
        the Secretary.
  (h) Compliance.--
          (1) As necessary to ensure compliance with this 
        section, the Secretary shall prescribe regulations 
        requiring recordkeeping and auditing of accounts 
        maintained by an air carrier or foreign air carrier and 
        its agent collecting a passenger facility fee and by 
        the eligible agency imposing the fee.
          (2) The Secretary periodically shall audit and review 
        the use by an eligible agency of passenger facility 
        revenue. After review and a public hearing, the 
        Secretary may end any part of the authority of the 
        agency to impose a passenger facility fee to the extent 
        the Secretary decides that the revenue is not being 
        used as provided in this section.
          (3) The Secretary may set off amounts necessary to 
        ensure compliance with this section against amounts 
        otherwise payable to an eligible agency under 
        subchapter I of chapter 471 of this title if the 
        Secretary decides a passenger facility fee is excessive 
        or that passenger facility revenue is not being used as 
        provided in this section.
  (i) Regulations.--The Secretary shall prescribe regulations 
necessary to carry out this section. The regulations--
          (1) may prescribe the time and form by which a 
        passenger facility fee takes effect;
          (2) shall--
                  (A) require an air carrier or foreign air 
                carrier and its agent to collect a passenger 
                facility fee that an eligible agency imposes 
                under this section;
                  (B) establish procedures for handling and 
                remitting money collected;
                  (C) ensure that the money, less a uniform 
                amount the Secretary determines reflects the 
                average necessary and reasonable expenses (net 
                of interest accruing to the carrier and agent 
                after collection and before remittance) 
                incurred in collecting and handling the fee, is 
                paid promptly to the eligible agency for which 
                they are collected; and
                  (D) require that the amount collected for any 
                air transportation be noted on the ticket for 
                that air transportation; and
          (3) may permit an eligible agency to request that 
        collection of a passenger facility fee be waived for--
                  (A) passengers enplaned by any class of air 
                carrier or foreign air carrier if the number of 
                passengers enplaned by the carriers in the 
                class constitutes not more than one percent of 
                the total number of passengers enplaned 
                annually at the airport at which the fee is 
                imposed; or
                  (B) passengers enplaned on a flight to an 
                airport--
                          (i) that has fewer than 2,500 
                        passenger boardings each year and 
                        receives scheduled passenger service; 
                        or
                          (ii) in a community which has a 
                        population of less than 10,000 and is 
                        not connected by a land highway or 
                        vehicular way to the land-connected 
                        National Highway System within a State.
  (j) Limitation on Certain Actions.--A State, political 
subdivision of a State, or authority of a State or political 
subdivision that is not the eligible agency may not tax, 
regulate, or prohibit or otherwise attempt to control in any 
manner, the imposition or collection of a passenger facility 
fee or the use of the revenue from the passenger facility fee.
  (k) Competition Plans.--
          (1) In general.--Beginning in fiscal year 2001, no 
        eligible agency may impose a passenger facility fee 
        under this section with respect to a covered airport 
        (as such term is defined in section 47106(f)) unless 
        the agency has submitted to the Secretary a written 
        competition plan in accordance with such section. This 
        subsection does not apply to passenger facility fees in 
        effect before the date of the enactment of this 
        subsection.
          (2) Secretary shall ensure implementation and 
        compliance.--The Secretary shall review any plan 
        submitted under paragraph (1) to ensure that it meets 
        the requirements of this section, and shall review its 
        implementation from time-to-time to ensure that each 
        covered airport successfully implements its plan.

                        TITLE 49. TRANSPORTATION

                    SUBTITLE VII. AVIATION PROGRAMS

                 PART B. AIRPORT DEVELOPMENT AND NOISE

                    CHAPTER 471. AIRPORT DEVELOPMENT

                   SUBCHAPTER I. AIRPORT IMPROVEMENT

Sec. 47106. Project grant application approval conditioned on 
                    satisfaction of project requirements

  (a) Project Grant Application Approval.--The Secretary of 
Transportation may approve an application under this subchapter 
for a project grant only if the Secretary is satisfied that--
          (1) the project is consistent with plans (existing at 
        the time the project is approved) of public agencies 
        authorized by the State in which the airport is located 
        to plan for the development of the area surrounding the 
        airport;
          (2) the project will contribute to carrying out this 
        subchapter;
          (3) enough money is available to pay the project 
        costs that will not be paid by the United States 
        Government under this subchapter;
          (4) the project will be completed without 
        unreasonable delay; and
          (5) the sponsor has authority to carry out the 
        project as proposed.
  (b) Airport Development Project Grant Application Approval.--
The Secretary may approve an application under this subchapter 
for an airport development project grant for an airport only if 
the Secretary is satisfied that--
          (1) the sponsor, a public agency, or the Government 
        holds good title to the areas of the airport used or 
        intended to be used for the landing, taking off, or 
        surface maneuvering of aircraft, or that good title 
        will be acquired;
          (2) the interests of the community in or near which 
        the project may be located have been given fair 
        consideration; and
          (3) the application provides touchdown zone and 
        centerline runway lighting, high intensity runway 
        lighting, or land necessary for installing approach 
        light systems that the Secretary, considering the 
        category of the airport and the kind and volume of 
        traffic using it, decides is necessary for safe and 
        efficient use of the airport by aircraft.
  (c) Environmental Requirements.--
          (1) The Secretary may approve an application under 
        this subchapter for an airport development project 
        involving the location of an airport or runway or a 
        major runway extension--
                  (A) only if the sponsor certifies to the 
                Secretary that--
                          (i) an opportunity for a public 
                        hearing was given to consider the 
                        economic, social, and environmental 
                        effects of the location and the 
                        location's consistency with the 
                        objectives of any planning that the 
                        community has carried out; and
                          (ii) the airport management board has 
                        voting representation from the 
                        communities in which the project is 
                        located or has advised the communities 
                        that they have the right to petition 
                        the Secretary about a proposed project; 
                        and
                  [(B) only if the chief executive officer of 
                the State in which the project will be located 
                certifies in writing to the Secretary that 
                there is reasonable assurance that the project 
                will be located, designed, constructed, and 
                operated in compliance with applicable air and 
                water quality standards, except that the 
                Administrator of the Environmental Protection 
                Agency shall make the certification instead of 
                the chief executive officer if--
                          [(i) the State has not approved any 
                        applicable State or local standards; 
                        and
                          [(ii) the Administrator has 
                        prescribed applicable standards; and]
                  [(C)] (B) if the application is found to have 
                a significant adverse effect on natural 
                resources, including fish and wildlife, 
                natural, scenic, and recreation assets, water 
                and air quality, or another factor affecting 
                the environment, only after finding that no 
                possible and prudent alternative to the project 
                exists and that every reasonable step has been 
                taken to minimize the adverse effect.
          (2) The Secretary may approve an application under 
        this subchapter for an airport development project that 
        does not involve the location of an airport or runway, 
        or a major runway extension, at an existing airport 
        without requiring an environmental impact statement 
        related to noise for the project if--
                  (A) completing the project would allow 
                operations at the airport involving aircraft 
                complying with the noise standards prescribed 
                for ``stage 2'' aircraft in section 36.1 of 
                title 14, Code of Federal Regulations, to 
                replace existing operations involving aircraft 
                that do not comply with those standards; and
                  (B) the project meets the other requirements 
                under this subchapter.
          (3) At the Secretary's request, the sponsor shall 
        give the Secretary a copy of the transcript of any 
        hearing held under paragraph (1)(A) of this subsection.
          [(4)(A) Notice of certification or of refusal to 
        certify under paragraph (1)(B) of this subsection shall 
        be provided to the Secretary not later than 60 days 
        after the Secretary receives the application.
          [(B) The Secretary shall condition approval of the 
        application on compliance with the applicable standards 
        during construction and operation.]
          [(5)] (4) The Secretary may make a finding under 
        paragraph [(1)(C)] (1)(B) of this subsection only after 
        completely reviewing the matter. The review and finding 
        must be a matter of public record.
  (d) Withholding Approval.--
          (1) The Secretary may withhold approval of an 
        application under this subchapter for amounts 
        apportioned under section 47114(c) and (e) of this 
        title for violating an assurance or requirement of this 
        subchapter only if--
                  (A) the Secretary provides the sponsor an 
                opportunity for a hearing; and
                  (B) not later than 180 days after the later 
                of the date of the application or the date the 
                Secretary discovers the noncompliance, the 
                Secretary finds that a violation has occurred.
          (2) The 180-day period may be extended by--
                  (A) agreement between the Secretary and the 
                sponsor; or
                  (B) the hearing officer if the officer 
                decides an extension is necessary because the 
                sponsor did not follow the schedule the officer 
                established.
          (3) A person adversely affected by an order of the 
        Secretary withholding approval may obtain review of the 
        order by filing a petition in the United States Court 
        of Appeals for the District of Columbia Circuit or in 
        the court of appeals of the United States for the 
        circuit in which the project is located. The action 
        must be brought not later than 60 days after the order 
        is served on the petitioner.
  (e) Reports Relating to Construction of Certain New Hub 
Airports.--At least 90 days prior to the approval under this 
subchapter of a project grant application for construction of a 
new hub airport that is expected to have 0.25 percent or more 
of the total annual enplanements in the United States, the 
Secretary shall submit to Congress a report analyzing the 
anticipated impact of such proposed new airport on--
          (1) the fees charged to air carriers (including 
        landing fees), and other costs that will be incurred by 
        air carriers, for using the proposed airport;
          (2) air transportation that will be provided in the 
        geographic region of the proposed airport; and
          (3) the availability and cost of providing air 
        transportation to rural areas in such geographic 
        region.
  (f) Competition Plans.--
          (1) Prohibition.--Beginning in fiscal year 2001, no 
        passenger facility fee may be approved for a covered 
        airport under section 40117 and no grant may be made 
        under this subchapter for a covered airport unless the 
        airport has submitted to the Secretary a written 
        competition plan in accordance with this subsection.
          (2) Contents.--A competition plan under this 
        subsection shall include information on the 
        availability of airport gates and related facilities, 
        leasing and sub-leasing arrangements, gate-use 
        requirements, patterns of air service, gate-assignment 
        policy, financial constraints, airport controls over 
        air- and ground-side capacity, whether the airport 
        intends to build or acquire gates that would be used as 
        common facilities, and airfare levels (as compiled by 
        the Department of Transportation) compared to other 
        large airports.
          (3) Special rule for fiscal year 2002.--This 
        subsection does not apply to any passenger facility fee 
        approved, or grant made, in fiscal year 2002 if the fee 
        or grant is to be used to improve security at a covered 
        airport.
          (4) Covered airport defined.--In this subsection, the 
        term ``covered airport'' means a commercial service 
        airport--
                  (A) that has more than .25 percent of the 
                total number of passenger boardings each year 
                at all such airports; and
                  (B) at which one or two air carriers control 
                more than 50 percent of the passenger 
                boardings.

                             * * * * * * *

Sec. 47117. Use of apportioned amounts

  (a) Grant Purpose.--Except as provided in this section, an 
amount apportioned under section 47114(c)(1) or (d)(2) of this 
title is available for making grants for any purpose for which 
amounts are made available under section 48103 of this title.
  (b) Period of Availability.--An amount apportioned under 
section 47114 of this title is available to be obligated for 
grants under the apportionment only during the fiscal year for 
which the amount was apportioned and the 2 fiscal years 
immediately after that year or the 3 fiscal years immediately 
following that year in the case of a primary airport that had 
less than .05 percent of the total boardings in the United 
States in the preceding calendar year. If the amount is not 
obligated under the apportionment within that time, it shall be 
added to the discretionary fund.
  (c) Primary Airports.--
          (1) An amount apportioned to a sponsor of a primary 
        airport under section 47114(c)(1) of this title is 
        available for grants for any public-use airport of the 
        sponsor included in the national plan of integrated 
        airport systems.
          (2) A sponsor of a primary airport may make an 
        agreement with the Secretary of Transportation waiving 
        any part of the amount apportioned for the airport 
        under section 47114(c)(1) of this title if the 
        Secretary makes the waived amount available for a grant 
        for another public-use airport in the same State or 
        geographical area as the primary airport.
  (d) State Use.--An amount apportioned to a State under--
          (1) section 47114(d)(2)(A) of this title is available 
        for grants for airports located in the State; and
          (2) section 47114(d)(2)(B) or (C) of this title is 
        available for grants for airports described in section 
        47114(d)(2)(B) or (C) and located in the State.
  (e) Special Apportionment Categories.--
          (1) The Secretary shall use amounts available to the 
        discretionary fund under section 47115 of this title 
        for each fiscal year as follows:
                  (A) [At least 34 percent for grants for 
                airport noise compatibility planning under 
                section 47505(a)(2) of this title and for 
                carrying out noise compatibility programs under 
                section 47504(c)(1) of this title.] At least 35 
                percent for grants for airport noise 
                compatibility planning under section 
                47505(a)(2) for a national capacity project, 
                for carrying out noise compatibility programs 
                under section 47504(c) of this title, and for 
                noise mitigation projects approved in an 
                environmental record of decision for an airport 
                development project designated as a national 
                capacity project under section 47702. The 
                Secretary may count the amount of grants made 
                for such planning and programs with funds 
                apportioned under section 47114 in that fiscal 
                year in determining whether [or not such 34 
                percent requirement] the funding level required 
                by the preceding sentence is being met in that 
                fiscal year.
                  (B) At at least 4 percent to sponsors of 
                current or former military airports designated 
                by the Secretary under section 47118(a) of this 
                title for grants for developing current and 
                former military airports to improve the 
                capacity of the national air transportation 
                system and to sponsors of noncommercial service 
                airports for grants for operational and 
                maintenance expenses at any such airport if the 
                amount of such grants to the sponsor of the 
                airport does not exceed $30,000 in that fiscal 
                year, if the Secretary determines that the 
                airport is adversely affected by the closure or 
                realignment of a military base, and if the 
                sponsor of the airport certifies that the 
                airport would otherwise close if the airport 
                does not receive the grant.
                  (C) In any fiscal year in which the total 
                amount made available under section 48103 is 
                $3,200,000,000 or more, at least two-thirds of 
                1 percent for grants to sponsors of reliever 
                airports which have--
                          (i) more than 75,000 annual 
                        operations;
                          (ii) a runway with a minimum usable 
                        landing distance of 5,000 feet;
                          (iii) a precision instrument landing 
                        procedure;
                          (iv) a minimum number of aircraft, to 
                        be determined by the Secretary, based 
                        at the airport; and
                          (v) been designated by the Secretary 
                        as a reliever airport to an airport 
                        with 20,000 hours of annual delays in 
                        commercial passenger aircraft takeoffs 
                        and landings.
          (2) If the Secretary decides that an amount required 
        to be used for grants under paragraph (1) of this 
        subsection cannot be used for a fiscal year because 
        there are insufficient qualified grant applications, 
        the amount the Secretary determines cannot be used is 
        available during the fiscal year for grants for other 
        airports or for other purposes for which amounts are 
        authorized for grants under section 48103 of this 
        title.
          (3) Priority.--The Secretary shall give priority in 
        making grants under paragraph (1)(A) to applications 
        for airport noise compatibility planning and programs 
        at and around--
                  (A) Chicago O'Hare International Airport;
                  (B) LaGuardia Airport;
                  (C) John F. Kennedy International Airport; 
                and
                  (D) Ronald Reagan Washington National 
                Airport.
  (f) Discretionary Use of Apportionments.--
          (1) In general.--Subject to paragraph (2), if the 
        Secretary finds that all or part of an amount of an 
        apportionment under section 47114 is not required 
        during a fiscal year to fund a grant for which the 
        apportionment may be used, the Secretary may use during 
        such fiscal year the amount not so required to make 
        grants for any purpose for which grants may be made 
        under section 48103. The finding may be based on the 
        notifications that the Secretary receives under section 
        47105(f) or on other information received from airport 
        sponsors.
          (2) Restoration of apportionments.--
                  (A) In general.--Of the fiscal year for which 
                a finding is made under paragraph (1) with 
                respect to an apportionment is not the last 
                fiscal year of availability of the 
                apportionment under subsection (b), the 
                Secretary shall restore to the apportionment an 
                amount equal to the amount of the apportionment 
                used under paragraph (1) for a discretionary 
                grant whenever a sufficient amount is made 
                available under section 48103.
                  (B) Period of availability.--If restoration 
                under this paragraph is made in the fiscal year 
                for which the finding is made or the succeeding 
                fiscal year, the amount restored shall be 
                subject to the original period of availability 
                of the apportionment under subsection (b). If 
                the restoration is made thereafter, the amount 
                restored shall remain available in accordance 
                with subsection (b) for the original period of 
                availability of the apportionment plus the 
                number of fiscal years during which a 
                sufficient amount was not available for the 
                restoration.
          (3) Newly available amounts.--
                  (A) Restored amounts to be unavailable for 
                discretionary grants.--Of an amount newly 
                available under section 48103 of this title, an 
                amount equal to the amounts restored under 
                paragraph (2) shall not be available for 
                discretionary grant obligations under section 
                47115.
                  (B) Use of remaining amounts.--Subparagraph 
                (A) does not impair the Secretary's authority 
                under paragraph (1), after a restoration under 
                paragraph (2), to apply all or part of a 
                restored amount that is not required to fund a 
                grant under an apportionment to fund 
                discretionary grants.
          (4) Limitations on obligations apply.--Nothing in 
        this subsection shall be construed to authorize the 
        Secretary to incur grant obligations under section 
        47104 for a fiscal year in an amount greater than the 
        amount made available under section 48103 for such 
        obligations for such fiscal year.
  (g) Limiting Authority of Secretary.--The authority of the 
Secretary to make grants during a fiscal year from amounts that 
were apportioned for a prior fiscal year and remain available 
for approved airport development project grants under 
subsection (b) of this section may be impaired only by a law 
enacted after September 3, 1982, that expressly limits that 
authority.

Sec. 41723. Delay reduction actions

  (a) Delay Reduction Meetings.--
          (1) Scheduling reduction meetings.--The Secretary of 
        Transportation may request that air carriers meet with 
        the Administrator of the Federal Aviation 
        Administration to discuss flight reductions at severely 
        congested airports to reduce overscheduling and flight 
        delays during hours of peak operation if--
                  (A) the Administrator of the Federal Aviation 
                Administration determines that it is necessary 
                to convene such a meeting; and
                  (B) the Secretary determines that the meeting 
                is necessary to meet a serious transportation 
                need or achieve an important public benefit.
          (2) Meeting conditions.--Any meeting under paragraph 
        (1)--
                  (A) shall be chaired by the Administrator;
                  (B) shall be open to all scheduled air 
                carriers; and
                  (C) shall be limited to discussions involving 
                the airports and time periods described in the 
                Administrator's determination.
          (3) Flight reduction targets.--Before any such 
        meeting is held, the Administrator shall establish 
        flight reduction targets for the meeting and notify the 
        attending air carriers of those targets not less than 
        48 hours before the meeting.
          (4) Delay reduction offers.--An air carrier attending 
        the meeting shall make any delay reduction offer to the 
        Administrator rather than to another carrier.
          (5) Transcript.--The Administrator shall ensure that 
        a transcript of the meeting is kept and made available 
        to the public not later than 3 business days after the 
        conclusion of the meeting.
  (b) Stormy Weather Agreements Limited Exemption.--
          (1) In general.--The Secretary may establish a 
        program to authorize by order discussions and 
        agreements between 2 or more air carriers for the 
        purpose of reducing flight delays during periods of 
        inclement weather.
          (2) Requirements.--An authorization issued under 
        paragraph (1)--
                  (A) may only be issued by the Secretary after 
                a determination by the Federal Aviation 
                Administration that inclement weather is likely 
                to adversely and directly affect capacity at an 
                airport for a period of at least 3 hours;
                  (B) shall apply only to discussions and 
                agreements concerning flights directly affected 
                by the inclement weather; and
                  (C) shall remain in effect for a period of 24 
                hours.
          (3) Procedure.--The Secretary shall establish 
        procedures within 30 days after such date of enactment 
        for--
                  (A) filing requests for an authorization 
                under paragraph (1);
                  (B) participation under paragraph (5) by 
                representatives of the Department of 
                Transportation in any meetings or discussions 
                held pursuant to such an order; and
                  (C) the determination by the Federal Aviation 
                Administration about the impact of inclement 
                weather.
          (4) Copy of participation request filed with 
        secretary.--Before an air carrier may request an order 
        under paragraph (1), it shall file a request with the 
        Secretary, in such form and manner as the Secretary may 
        prescribe, to participate in the program established 
        under paragraph (1).
          (5) DOT Participation.--The Secretary shall ensure 
        that the Department is represented at any meetings 
        authorized under this subsection.
  (c) Exemption Authorized.--When the Secretary finds that it 
is required by the public interest, the Secretary, as part of 
an order issued under subsection (b)(1), shall exempt a person 
affected by the order from the antitrust laws to the extent 
necessary to allow the person to proceed with the activities 
approved in the order.
  (d) Antitrust Laws Defined.--In this section, the term 
``antitrust laws'' has the meaning given that term in the first 
section of the Clayton Act (15 U.S.C. 12).
  (e) Sunset.--The authority of the Secretary to issue an order 
under subsection (b)(1) of this section expires at the end of 
the 2-year period that begins 45 days after the date of 
enactment of the Aviation Delay Prevention Act. The Secretary 
may extend the 2-year for an additional 2 years if the 
Secretary determines that such an extension is necessary and in 
the public interest. The Secretary shall notify the Senate 
Committee on Commerce, Science, and Transportation, and to the 
House of Representatives Committee on Transportation and 
Infrastructure of any such extension.

                             * * * * * * *

Sec. 47124. Agreements for State and local operation of airport 
                    facilities

  (a) Government Relief From Liability.--The Secretary of 
Transportation shall ensure that an agreement under this 
subchapter with a State or a political subdivision of a State 
to allow the State or subdivision to operate an airport 
facility in the State or subdivision relieves the United States 
Government from any liability arising out of, or related to, 
acts or omissions of employees of the State or subdivision in 
operating the airport facility.
  (b) Air Traffic Control Contract Program.--
          (1) The Secretary shall continue the low activity 
        (Visual Flight Rules) level I air traffic control tower 
        contract program established under subsection (a) of 
        this section for towers existing on December 30, 1987, 
        and extend the program to other towers as practicable.
          (2) The Secretary may make a contract, on a sole 
        source basis, with a State or a political subdivision 
        of a State to allow the State or subdivision to operate 
        an airport traffic control tower classified as a level 
        I (Visual Flight Rules) tower if the Secretary decides 
        that the State or subdivision has the capability to 
        comply with the requirements of this paragraph. The 
        contract shall require that the State or subdivision 
        comply with applicable safety regulations in operating 
        the facility and with applicable competition 
        requirements in making a subcontract to perform work to 
        carry out the contract.
          (3) Contract air traffic control tower pilot 
        program.--
                  (A) In general.--The Secretary shall 
                establish a pilot program to contract for air 
                traffic control services at [Level I air 
                traffic control towers, as defined by the 
                Secretary,] nonapproach control towers that do 
                not qualify for the contract tower program 
                established under subsection (a) and continued 
                under paragraph (1) (in this paragraph referred 
                to as the ``Contract Tower Program'').
                  (B) Program components.--In carrying out the 
                pilot program, the Secretary shall--
                          (i) utilize for purposes of cost-
                        benefit analyses, current, actual, 
                        site-specific data, forecast estimates, 
                        or airport master plan data provided by 
                        a facility owner or operator and 
                        verified by the Secretary; and
                          (ii) approve for participation only 
                        facilities willing to fund a pro rata 
                        share of the operating costs of the air 
                        traffic control tower to achieve a 1-
                        to-1 benefit-to-cost ratio using actual 
                        site-specific contract tower operating 
                        costs in any case in which there is an 
                        operating air traffic control tower, as 
                        required for eligibility under the 
                        Contract Tower Program.
                  (C) Priority.--In selecting facilities to 
                participate in the pilot program, the Secretary 
                shall give priority to the following 
                facilities:
                          (i) Air traffic control towers that 
                        are participating in the Contract Tower 
                        Program but have been notified that 
                        they will be terminated from such 
                        program because the Secretary has 
                        determined that the benefit-to-cost 
                        ratio for their continuation in such 
                        program is less than 1.0.
                          (ii) Air traffic control towers that 
                        the Secretary determines have a 
                        benefit-to-cost ratio of at least .50.
                          (iii) Air traffic control towers of 
                        the Federal Aviation Administration 
                        that are closed as a result of the air 
                        traffic controllers strike in 1981.
                          (iv) Air traffic control towers 
                        located at airports or points at which 
                        an air carrier is receiving 
                        compensation under the essential air 
                        service program under this chapter.
                          (v) Air traffic control towers 
                        located at airports that are prepared 
                        to assume partial responsibility for 
                        maintenance costs.
                          (vi) Air traffic control towers 
                        located at airports with safety or 
                        operational problems related to 
                        topography, weather, runway 
                        configuration, or mix of aircraft.
                          (vii) Air traffic control towers 
                        located at an airport at which the 
                        community has been operating the tower 
                        at its own expense.
                  (D) Costs exceeding benefits. If the costs of 
                operating an air traffic tower under the pilot 
                program exceed the benefits, the airport 
                sponsor or State or local government having 
                jurisdiction over the airport shall pay the 
                portion of the costs that exceed such benefit.
                  (E) Funding.--Subject to paragraph (4)(D), of 
                the amounts appropriated pursuant to section 
                106(k), not more than $6,000,000 per fiscal 
                year may be used to carry out this paragraph.
          [(4) Construction of air traffic control towers.--
                  [(A) In general.--Notwithstanding any other 
                provision of this subchapter, the Secretary may 
                provide grants under this subchapter to not 
                more than two airport sponsors for the 
                construction of a low-level activity visual 
                flight rule (level 1) air traffic control 
                tower, as defined by the Secretary.
                  [(B) Eligibility.--A sponsor shall be 
                eligible for a grant under this paragraph if--
                          [(i) the sponsor would otherwise be 
                        eligible to participate in the pilot 
                        program established under paragraph (3) 
                        except for the lack of the air traffic 
                        control tower proposed to be 
                        constructed under this subsection; and
                          [(ii) the sponsor agrees to fund not 
                        less than 25 percent of the costs of 
                        construction of the air traffic control 
                        tower.
                  [(C) Project costs.--Grants under this 
                paragraph shall be paid only from amounts 
                apportioned to the sponsor under section 
                47114(c)(1).
                  [(D) Federal share.--The Federal share of the 
                cost of construction of an air traffic control 
                tower under this paragraph may not exceed 
                $1,100,000.]
          (4) Construction of air traffic control towers.--
                  (A) In general.--Notwithstanding any other 
                provision of this subchapter, the Secretary may 
                provide grants under this subchapter to an 
                airport sponsor for--
                          (i) the construction or improvement 
                        of a nonapproach control tower; or
                          (ii) the acquisition and installation 
                        of air traffic control equipment to be 
                        used in a nonapproach control tower 
                        that will assist in sustaining or 
                        improving the safe and efficient 
                        movement of air traffic.
                  (B) Eligibility.--A sponsor shall be eligible 
                for a grant under this paragraph if--
                          (i)(I) the sponsor is a participant 
                        in the Federal Aviation Administration 
                        Contract Tower Program (as described in 
                        paragraph (3)(A)) or the pilot program 
                        established under paragraph (3); or
                          (II) construction of a nonapproach 
                        control tower would qualify the sponsor 
                        to be eligible to participate in the 
                        Federal Aviation Administration 
                        Contract Tower Program or pilot 
                        program; and
                          (ii) the sponsor agrees to fund not 
                        less than 10 percent of the cost of the 
                        activities receiving assistance under 
                        this paragraph.
                  (C) Project costs.--Grants under this 
                paragraph shall be paid only from amounts made 
                available to the sponsor under sections 
                47114(c)(1) and (d)(3)(A).
                  (D) Federal share.--The Federal share of the 
                cost of construction of a nonapproach control 
                tower under this paragraph may not exceed 
                $1,100,000.
          (5) Non-approach control tower defined.--In this 
        subsection, the term ``nonapproach control tower'' has 
        the meaning given such term in Federal Aviation 
        Administration Order 7110.65 (as in effect on the date 
        of enactment of the Aviation Delay Prevention Act) and 
        the Aeronautical Information Manual (as in effect on 
        such date of enactment).

                        title 49. transportation

                    subtitle vii. aviation programs

                 part b. airport development and noise

                 CHAPTER 477. NATIONAL CAPACITY PROJECTS

47701. Capacity enhancement
47702. Designation of national capacity projects
47703. Expedited coordinated environmental review process; project 
          coordinators and environment impact teams.
47704. Compatible land use initiative for national capacity projects
47705. Air traffic procedures at national capacity projects
47706. Pilot program for environmental review at national capacity 
          projects
47707. Definitions

Sec. 47701. Capacity enhancement

  (a) In General.--Within 30 days after the date of enactment 
of the Aviation Delay Prevention Act, the Secretary of 
Transportation shall identify those airports among the 31 
airports covered by the Federal Aviation Administration's 
Airport Capacity Benchmark Report 2001 with delays that 
significantly affect the national air transportation system.
  (b) Task Force; Capacity Enhancement Study.--
          (1) In general.--The Secretary shall direct any 
        airport identified by the Secretary under subsection 
        (a) that is not engaged in a runway expansion process 
        and has not initiated a capacity enhancement study (or 
        similar capacity assessment) since 1996--
                  (A) to establish a delay reduction task force 
                to study means of increasing capacity at the 
                airport, including air traffic, airline 
                scheduling, and airfield expansion 
                alternatives; or
                  (B) to conduct a capacity enhancement study.
          (2) Scope.--The scope of the study shall be 
        determined by the airport and the Federal Aviation 
        Administration, and where appropriate shall consider 
        regional capacity solutions.
          (3) Recommendations submitted to secretary.--
                  (A) Task force.--A task force established 
                under this subsection shall submit a report 
                containing its findings and conclusions, 
                together with any recommendations for capacity 
                enhancement at the airport, to the Secretary 
                within 9 months after the task force is 
                established.
                  (B) CES.--A capacity enhancement study 
                conducted under this subsection shall be 
                submitted, together with its findings and 
                conclusions, to the Secretary as soon as the 
                study is completed.
  (c) Runway Expansion and Reconfiguration.--If the report or 
study submitted under subsection (b)(3) includes a 
recommendation for the construction or reconfiguration of 
runways at the airport, then the Secretary and the airport 
shall complete the planning and environmental review process 
within 5 years after report or study is submitted to the 
Secretary. The Secretary may extend the 5-year deadline under 
this subsection for up to 1 year if the Secretary determines 
that such an extension is necessary and in the public interest. 
The Secretary shall notify the Senate Committee on Commerce, 
Science, and Transportation, and to the House of 
Representatives Committee on Transportation and Infrastructure 
of any such extension.
  (d) Airports That Decline To Undertake Expansion Projects.--
          (1) In general.--If an airport at which the 
        construction or reconfiguration of runways is 
        recommended does not take action to initiate a planning 
        and environmental assessment process for the 
        construction or reconfiguration of those runways within 
        30 days after the date on which the report or study is 
        submitted to the Secretary, then--
                  (A) the airport shall be ineligible for 
                planning and other expansion funds under 
                subchapter I of chapter 471, notwithstanding 
                any provision of that subchapter to the 
                contrary;
                  (B) no passenger facility fee may be approved 
                at that airport operator during the 5-year 
                period beginning 30 days after the date on 
                which the report or study is submitted to the 
                Secretary, for--
                          (i) projects that, but for 
                        subparagraph (A), could have been 
                        funded under chapter 471; or
                          (ii) any project other than on-
                        airport airfield-side capacity or 
                        safety-related projects.
          (2) Safety-related and environmental projects 
        excepted.--Paragraph (1) does not apply to the use of 
        funds for safety-related, security, or environment 
        projects.
  (e) Airports That Take Action.--The Secretary shall take all 
actions possible to expedite funding and provide options for 
funding to any airport undertaking runway construction or 
reconfiguration projects in response to recommendations by its 
task force.

Sec. 47702. Designation of national capacity projects

  (a) In General.--In response to a petition from an airport 
sponsor, or in the case of an airport on the list of airports 
covered by the Federal Aviation Administration's Airport 
Capacity Benchmarks study, the Secretary of Transportation may 
designate an airport development project as a national capacity 
project if the Secretary determines that the project to be 
designated will significantly enhance the capacity of the 
national air transportation system.
  (b) Designation To Remain in Effect for 5 Years.--The 
designation of a project as a national capacity project under 
paragraph (1) shall remain in effect for 5 years. The Secretary 
may extend the 5-year period for up to 2 additional years upon 
request if the Secretary finds that substantial progress is 
being made toward completion of the project.

Sec. 47703. Expedited coordinated environmental review process; project 
                    coordinators and environment impact teams.

  ``(a) In General.--The Secretary of Transportation shall 
implement an expedited coordinated environmental review process 
for national capacity projects that--
          ``(1) provides for better coordination among the 
        Federal, regional, State, and local agencies concerned 
        with the preparation of environmental impact statements 
        or environmental assessments under the National 
        Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
        seq.);
          ``(2) provides for an expedited and coordinated 
        process in the conduct of environmental reviews that 
        ensures that, where appropriate, the reviews are done 
        concurrently and not consecutively; and
          ``(3) provides for a date certain for completing all 
        environmental reviews.
  (b) High Priority for Airport Environmental Reviews.--Each 
department and agency of the United States Government with 
jurisdiction over environmental reviews shall accord any such 
review involving a national capacity project the highest 
possible priority and conduct the review expeditiously. If the 
Secretary finds that any such department or agency is not 
complying with the requirements of this subsection, the 
Secretary shall notify the Senate Committee on Commerce, 
Science, and Transportation, and to the House of 
Representatives Committee on Transportation and Infrastructure 
immediately.
  (c) Project Coordinators; EIS Teams.--
          (1) Designation.--For each project designated by the 
        Secretary as a national capacity project under 
        subsection (a) for which an environmental impact 
        statement or environmental assessment must be filed, 
        the Secretary shall--
                  (A) designate a project coordinator within 
                the Department of Transportation; and
                  (B) establish an environmental impact team 
                within the Department.
          (2) Function.--The project coordinator and the 
        environmental impact team shall--
                  (A) coordinate the activities of all Federal, 
                State, and local agencies involved in the 
                project;
                  (B) to the extent possible, working with 
                Federal, State and local officials, reduce and 
                eliminate duplicative and overlapping Federal, 
                State, and local permit requirements;
                  (C) to the extent possible, eliminate 
                duplicate Federal, State, and local 
                environmental review procedures; and
                  (D) provide direction for compliance with all 
                applicable Federal, State, and local 
                environmental requirements for the project.

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

  (a) In General.--The Secretary of Transportation may make 
grants under chapter 471 to States and units of local 
government for land use compatibility plans directly related to 
national capacity projects for the purposes of making the use 
of land areas around the airport compatible with aircraft 
operations if the land use plan or project meets the 
requirements of this section.
  (b) Conditions.--A land use plan or project meets the 
requirements of this section if it--
          (1) is sponsored by the public agency that has the 
        authority to plan and adopt land use control measures, 
        including zoning, in the planning area in and around 
        the airport and that agency provides written assurances 
        to the Secretary that it will work with the affected 
        airport to identify and adopt such measures;
          (2) does not duplicate, and is not inconsistent with, 
        an airport noise compatibility program prepared by an 
        airport owner or operator under chapter 475 or with 
        other planning carried out by the airport.
          (3) is subject to an agreement between the public 
        agency sponsor and the airport owner or operator that 
        the development of the land use compatibility plan will 
        be done cooperatively;
          (4) is consistent with the airport operation and 
        planning, including the use of any noise exposure 
        contours on which the land use compatibility planning 
        or project is based; and
          (5) has been approved jointly by the airport owner or 
        operator and the public agency sponsor.
  (c) Assurances From Sponsors.-- The Secretary may require the 
airport sponsor, public agency, or other entity to which a 
grant may be awarded under this section to provide such 
additional assurances, progress reports, and other information 
as the Secretary determines to be necessary to carry out this 
section.

Sec. 47705. Air traffic procedures at national capacity projects

  (a) In General.--The Secretary of Transportation may consider 
prescribing flight procedures to avoid or minimize potentially 
significant adverse noise impacts of the project during the 
environmental planning process for a national capacity project 
that involves the construction of new runways or the 
reconfiguration of existing runways. If the Secretary 
determines that noise mitigation flight procedures are 
consistent with safe and efficient use of the navigable 
airspace, then, at the request of the airport sponsor, the 
Administrator may, in a manner consistent with applicable 
Federal law, commit to prescribing such procedures in any 
record of decision approving the project.
  (b) Modification.--Notwithstanding any commitment by the 
Secretary under subsection (a), the Secretary may initiate 
changes to such procedures if necessary to maintain safety and 
efficiency in light of new information or changed 
circumstances.

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

  (a) In General.--The Secretary of Transportation shall 
initiate a 5-year pilot program funded by airport sponsors--
          (1) to hire additional fulltime-equivalent 
        environmental specialists and attorneys, or
          (2) to obtain the services of such specialists and 
        attorneys from outside the United States Government, to 
        assist in the provision of an appropriate nationwide 
        level of staffing for planning and environmental review 
        of runway development projects for national capacity 
        projects at the Federal Aviation Administration.
  (b) Eligible Participants.--Participation in the pilot 
program shall be available, on a voluntary basis, to airports 
with an annual passenger enplanement of not less than 3 million 
passengers. The Secretary shall specify the minimum 
contribution necessary to qualify for participation in the 
pilot program, which shall be not less than the amount 
necessary to compensate the Department of Transportation for 
the expense of a fulltime equivalent environmental specialist 
and attorney qualified at the GS-14 equivalent level.
  (c) Retention of Revenues.--The salaries and expenses account 
of the Federal Aviation Administration shall retain as an 
offsetting collection such sums as may be necessary from such 
proceeds for the costs of developing and implementing the 
program required by subsection (a). Such offsetting collections 
shall be available for obligation subject to the terms and 
conditions of the receiving appropriations account, and shall 
be deposited in such accounts on a quarterly basis. Such 
offsetting collections are authorized to remain available until 
expended for such purpose.

Sec. 47707. Definitions

  In this chapter:
          (1) National capacity project.--The term ``national 
        capacity project'' means a project designated by the 
        Secretary under section 44702.
          (2) Other terms.--The definitions in section 47102 
        apply to any terms used in this chapter that are 
        defined in that section.

                                 
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