be incorporated into a memorandum of understanding for
a project between the Secretary and the heads of other
Federal and State agencies identified under subsection (c)
with respect to the project and the airport sponsor.
‘‘(f) EFFECT OF FAILURE TO MEET DEADLINE.—
‘‘(1) NOTIFICATION OF CONGRESS AND CEQ.—
If the Secretary determines that a Federal agency,
State agency, or airport sponsor that is participating
in a coordinated review process under this section
with respect to a project has not met a deadline es-
tablished under subsection (b) for the project, the
Secretary shall notify, within 30 days of the date of
such determination, the Committee on Transpor-
tation and Infrastructure of the House of Represent-
atives, the Committee on Commerce, Science, and
Transportation of the Senate, the Council on Envi-
ronmental Quality, and the agency or sponsor in-
volved about the failure to meet the deadline.
‘‘(2) AGENCY REPORT.—Not later than 30 days
after date of receipt of a notice under paragraph (1),
the agency or sponsor involved shall submit a report
to the Secretary, the Committee on Transportation
and Infrastructure of the House of Representatives,
the Committee on Commerce, Science, and Trans-
portation of the Senate, and the Council on Environ-
mental Quality explaining why the agency or sponsor
did not meet the deadline and what actions it in-
tends to take to complete or issue the required re-
view, analysis, opinion, permit, license, or approval.
‘‘(g) PURPOSE AND NEED.—For any environmental
review, analysis, opinion, permit, license, or approval that
must be issued or made by a Federal or State agency that
is participating in a coordinated review process under this
section with respect to an airport capacity enhancement
project at a congested airport and that requires an anal-
ysis of purpose and need for the project, the agency, not-
withstanding any other provision of law, shall be bound
by the project purpose and need as defined by the Sec-
retary.
‘‘(h) ALTERNATIVES ANALYSIS.—The Secretary shall
determine the reasonable alternatives to an airport capac-
ity enhancement project at a congested airport. Any other
Federal or State agency that is participating in a coordi-
nated review process under this section with respect to the
project shall consider only those alternatives to the project
that the Secretary has determined are reasonable.
‘‘(i) SOLICITATION AND CONSIDERATION OF COM-
MENTS.—In applying subsections (g) and (h), the Sec-
retary shall solicit and consider comments from interested
persons and governmental entities.
‘‘(j) MONITORING BY TASK FORCE.—The Transpor-
tation Infrastructure Streamlining Task Force, estab-
lished by Executive Order 13274 (67 Fed. Reg. 59449;
relating to environmental stewardship and transportation
infrastructure project reviews), may monitor airport
projects that are subject to the coordinated review process
under this section.
‘‘§ 47172. Categorical exclusions
‘‘Not later than 120 days after the date of enactment
of this section, the Secretary of Transportation shall de-
velop and publish a list of categorical exclusions from the
requirement that an environmental assessment or an envi-
ronmental impact statement be prepared under the Na-
tional Environmental Policy Act of 1969 (42 U.S.C. 4321
et seq.) for projects at airports.
‘‘§ 47173. Access restrictions to ease construction
‘‘At the request of an airport sponsor for a congested
airport, the Secretary of Transportation may approve a
restriction on use of a runway to be constructed at the
airport to minimize potentially significant adverse noise
impacts from the runway only if the Secretary determines
that imposition of the restriction—
‘‘(1) is necessary to mitigate those impacts and
expedite construction of the runway;
‘‘(2) is the most appropriate and a cost-effective
measure to mitigate those impacts, taking into con-
sideration any environmental tradeoffs associated
with the restriction; and
‘‘(3) would not adversely affect service to small
communities, adversely affect safety or efficiency of
the national airspace system, unjustly discriminate
against any class of user of the airport, or impose
an undue burden on interstate or foreign commerce.
‘‘§ 47174. Airport revenue to pay for mitigation
‘‘(a) 
IN
GENERAL.—Notwithstanding 
section
47107(b), section 47133, or any other provision of this
title, the Secretary of Transportation may allow an airport
sponsor carrying out an airport capacity enhancement
project at a congested airport to make payments, out of
revenues generated at the airport (including local taxes on
aviation fuel), for measures to mitigate the environmental
impacts of the project if the Secretary finds that—
‘‘(1) the mitigation measures are included as
part of, or support, the preferred alternative for the
project in the documentation prepared pursuant to
the National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.);
‘‘(2) the use of such revenues will provide a sig-
nificant incentive for, or remove an impediment to,
approval of the project by a State or local govern-
ment; and
‘‘(3) the cost of the mitigation measures is rea-
sonable in relation to the mitigation that will be
achieved.
‘‘(b) MITIGATION OF AIRCRAFT NOISE.—Mitigation
measures described in subsection (a) may include the insu-
lation of residential buildings and buildings used primarily
for educational or medical purposes to mitigate the effects
of aircraft noise and the improvement of such buildings
as required for the insulation of the buildings under local
building codes.
‘‘§ 47175. Airport funding of FAA staff
‘‘(a) 
ACCEPTANCE
OF
SPONSOR-PROVIDED
FUNDS.—Notwithstanding any other provision of law, the
Administrator of the Federal Aviation Administration may
accept funds from an airport sponsor, including funds pro-
vided to the sponsor under section 47114(c), to hire addi-
tional staff or obtain the services of consultants in order
to facilitate the timely processing, review, and completion
of environmental activities associated with an airport de-
velopment project.
‘‘(b) ADMINISTRATIVE PROVISION.—Instead of pay-
ment from an airport sponsor from funds apportioned to
the sponsor under section 47114, the Administrator, with
agreement of the sponsor, may transfer funds that would
otherwise be apportioned to the sponsor under section
47114 to the account used by the Administrator for activi-
ties described in subsection (a).
‘‘(c) RECEIPTS CREDITED AS OFFSETTING COLLEC-
TIONS.—Notwithstanding section 3302 of title 31, any
funds accepted under this section, except funds trans-
ferred pursuant to subsection (b)—
‘‘(1) shall be credited as offsetting collections to
the account that finances the activities and services
for which the funds are accepted;
‘‘(2) shall be available for expenditure only to
pay the costs of activities and services for which the
funds are accepted; and
‘‘(3) shall remain available until expended.
‘‘(d) MAINTENANCE OF EFFORT.—No funds may be
accepted pursuant to subsection (a), or transferred pursu-
ant to subsection (b), in any fiscal year in which the Fed-
eral Aviation Administration does not allocate at least the
amount it expended in fiscal year 2002, excluding
amounts accepted pursuant to section 337 of the Depart-
ment of Transportation and Related Agencies Appropria-
tions Act, 2002 (115 Stat. 862), for the activities de-
scribed in subsection (a).
‘‘§ 47176. Authorization of appropriations
‘‘In addition to the amounts authorized to be appro-
priated under section 106(k), there is authorized to be ap-
propriated to the Secretary of Transportation, out of the
Airport and Airway Trust Fund established under section
9502 of the Internal Revenue Code of 1986 (26 U.S.C.
9502), $4,200,000 for fiscal year 2004 and for each fiscal
year thereafter to facilitate the timely processing, review,
and completion of environmental activities associated with
airport capacity enhancement projects at congested air-
ports.
‘‘§ 47177. Designation of aviation safety and aviation
security projects for priority environ-
mental review
‘‘(a) IN GENERAL.—The Administrator of the Fed-
eral Aviation Administration may designate an aviation
safety or aviation security project for priority environ-
mental review. The Administrator may not delegate this
designation authority.
‘‘(b) PROJECT DESIGNATION CRITERIA.—The Ad-
ministrator shall establish guidelines for the designation
of an aviation safety or aviation security project for pri-
ority environmental review. Such guidelines shall include
consideration of—
‘‘(1) the importance or urgency of the project;
‘‘(2) the potential for undertaking the environ-
mental review under existing emergency procedures
under the National Environmental Policy Act of
1969 (42 U.S.C. 4321 et seq.);
‘‘(3) the need for cooperation and concurrent
reviews by other Federal or State agencies; and
‘‘(4) the prospect for undue delay if the project
is not designated for priority review.
‘‘(c) COORDINATED ENVIRONMENTAL REVIEWS.—
‘‘(1) TIMELINES AND HIGH PRIORITY FOR CO-
ORDINATED
ENVIRONMENTAL
REVIEWS.—The Ad-
ministrator, in consultation with the heads of af-
fected agencies, shall establish specific timelines for
the coordinated environmental review of an aviation
safety or aviation security project designated under
subsection (a). Such timelines shall be consistent
with the timelines established in existing laws and
regulations. Each Federal agency with responsibility
for project environmental reviews, analyses, opinions,
permits, licenses, and approvals shall accord any
such review a high priority and shall conduct the re-
view expeditiously and, to the maximum extent pos-
sible, concurrently with other such reviews.
‘‘(2) AGENCY
PARTICIPATION.—Each Federal
agency identified under subsection (c) shall formu-
late and implement administrative, policy, and pro-
cedural mechanisms to enable the agency to ensure
completion of environmental reviews, analyses, opin-
ions, permits, licenses, and approvals described in
paragraph (1) in a timely and environmentally re-
sponsible manner.
‘‘(d) STATE PARTICIPATION.—
‘‘(1) INVITATION TO PARTICIPATE.—If a pri-
ority environmental review process is being imple-
mented under this section with respect to a project
within the boundaries of a State with applicable
State environmental requirements and approvals, the
Administrator shall invite the State to participate in
the process.
‘‘(2) STATE CHOICE.—A State invited to par-
ticipate in a priority environmental review process,
consistent with State law, may choose to participate
in such process and direct that all State agencies,
which have jurisdiction by law to conduct an envi-
ronmental review or analysis of the project to deter-
mine whether to issue an environmentally related
permit, license, or approval for the project, be sub-
ject to the process.
‘‘(e) FAILURE TO GIVE PRIORITY REVIEW.—
‘‘(1) NOTICE.—If the Secretary of Transpor-
tation determines that a Federal agency or a partici-
pating State is not complying with the requirements
of this section and that such noncompliance is un-
dermining the environmental review process, the
Secretary shall notify, within 30 days of such deter-
mination, the head of the Federal agency or, with
respect to a State agency, the Governor of the State.
‘‘(2) REPORT TO SECRETARY.—A Federal agen-
cy that receives a copy of a notification relating to
that agency made by the Secretary under paragraph
(1) shall submit, within 30 days after receiving such
copy, a written report to the Secretary explaining
the reasons for the situation described in the notifi-
cation and what remedial actions the agency intends
to take.
‘‘(3) NOTIFICATION
OF
CEQ
AND
COMMIT-
TEES.—If the Secretary determines that a Federal
agency has not satisfactorily addressed the problems
within a reasonable period of time following a notifi-
cation under paragraph (1), the Secretary shall no-
tify the Committee on Transportation and Infra-
structure of the House of Representatives, the Com-
mittee on Commerce, Science and Transportation of
the Senate, and the Council on Environmental Qual-
ity.
‘‘(f) PROCEDURAL PROVISIONS.—The procedures set
forth in subsections (c), (e), (g), (h), and (i) of section
47171 shall apply with respect to an aviation safety or
aviation security project under this section in the same
manner and to the same extent as such procedures apply
to an airport capacity enhancement project at a congested
airport under section 47171.
‘‘(g) DEFINITIONS.—In this section, the following
definitions apply:
‘‘(1) AVIATION
SAFETY
PROJECT.—The term
‘aviation safety project’ means an aviation project
that—
‘‘(A) has as its primary purpose reducing
the risk of injury to persons or damage to air-
craft and property, as determined by the Ad-
ministrator; and
‘‘(B)(i) is needed to respond to a rec-
ommendation from the National Transportation
Safety Board; or
‘‘(ii) is necessary for an airport to comply
with part 139 of title 14, Code of Federal Reg-
ulations (relating to airport certification).
‘‘(2) AVIATION SECURITY PROJECT.—The term
‘aviation security project’ means a security project
at an airport required by the Department of Home-
land Security.
‘‘(3) FEDERAL
AGENCY.—The term ‘Federal
agency’ means a department or agency of the United
States Government.
‘‘§ 47178. Definitions
‘‘In this subchapter, the following definitions apply:
‘‘(1) AIRPORT
SPONSOR.—The term ‘airport
sponsor’ has the meaning given the term ‘sponsor’
under section 47102.
‘‘(2) CONGESTED
AIRPORT.—The term ‘con-
gested airport’ means an airport that accounted for
at least 1 percent of all delayed aircraft operations
in the United States in the most recent year for
which such data is available and an airport listed in
table 1 of the Federal Aviation Administration’s Air-
port Capacity Benchmark Report 2001.
‘‘(3) 
AIRPORT
CAPACITY
ENHANCEMENT
PROJECT.—The term ‘airport capacity enhancement
project’ means—
‘‘(A) a project for construction or exten-
sion of a runway, including any land acquisi-
tion, taxiway, or safety area associated with the
runway or runway extension; and
‘‘(B) such other airport development
projects as the Secretary may designate as fa-
cilitating a reduction in air traffic congestion
and delays.’’.
(b) CONFORMING AMENDMENT.—The analysis for
chapter 471 of such title is amended by adding at the end
the following:
‘‘SUBCHAPTER III—AIRPORT PROJECT STREAMLINING
‘‘47171. DOT as lead agency.
‘‘47172. Categorical exclusions.
‘‘47173. Access restrictions to ease construction.
‘‘47174. Airport revenue to pay for mitigation.
‘‘47175. Airport funding of FAA staff.
‘‘47176. Authorization of appropriations.
‘‘47177. Designation of aviation safety and aviation security projects for priority
environmental review.
‘‘47178. Definitions.’’.
SEC. 205. GOVERNOR’S CERTIFICATE.
Section 47106(c) of title 49, United States Code, is
amended—
(1) in paragraph (1)—
(A) by inserting ‘‘and’’ after the semicolon
at the end of subparagraph (A)(ii);
(B) by striking subparagraph (B); and
(C) by redesignating subparagraph (C) as
subparagraph (B);
(2) in paragraph (2)(A) by striking ‘‘stage 2’’
and inserting ‘‘stage 3’’;
(3) by striking paragraph (4); and
(4) by redesignating paragraph (5) as para-
graph (4).
SEC. 206. CONSTRUCTION OF CERTAIN AIRPORT CAPACITY
PROJECTS.
Section 47504(c)(2) of title 49, United States Code,
is amended—
(1) by moving subparagraphs (C) and (D) 2
ems to the right;
(2) by striking ‘‘and’’ at the end of subpara-
graph (C);
(3) by striking the period at the end of sub-
paragraph (D) and inserting ‘‘; and’’; and
(4) by adding at the end the following:
‘‘(E) to an airport operator of a congested
airport (as defined in section 47178) and a unit
of local government referred to in paragraph
(1)(B) of this subsection to carry out a project
to mitigate noise in the area surrounding the
airport if the project is included as a commit-
ment in a record of decision of the Federal
Aviation Administration for an airport capacity
enhancement project (as defined in section
47178) even if that airport has not met the re-
quirements of part 150 of title 14, Code of Fed-
eral Regulations.’’.
SEC. 207. LIMITATIONS.
Nothing in this title, including any amendment made
by this title, shall preempt or interfere with—
(1) any practice of seeking public comment;
(2) any power, jurisdiction, or authority that a
State agency or an airport sponsor has with respect
to carrying out an airport capacity enhancement
project; and
(3) any obligation to comply with the provisions
of the National Environmental Policy Act of 1969
(42 U.S.C. 4371 et seq.) and the regulations issued
by the Council on Environmental Quality to carry
out such Act.
SEC. 208. RELATIONSHIP TO OTHER REQUIREMENTS.
The coordinated review process required under the
amendments made by this title shall apply to an airport
capacity enhancement project at a congested airport
whether or not the project is designated by the Secretary
of Transportation as a high-priority transportation infra-
structure project under Executive Order 13274 (67 Fed.
Reg. 59449; relating to environmental stewardship and
transportation infrastructure project reviews).
TITLE III—FEDERAL AVIATION
REFORM
SEC. 301. MANAGEMENT ADVISORY COMMITTEE MEMBERS.
Section 106(p) is amended—
(1) in the subsection heading by inserting ‘‘AND
AIR TRAFFIC SERVICES BOARD’’ after ‘‘COUNCIL’’;
and
(2) in paragraph (2)—
(A) by striking ‘‘consist of’’ and all that
follows through ‘‘members, who’’ and inserting
‘‘consist of 13 members, who’’;
(B) by inserting after ‘‘Senate’’ in sub-
paragraph (C)(i) ‘‘, except that initial appoint-
ments made after May 1, 2003, shall be made
by the Secretary of Transportation’’;
(C) by striking the semicolon at the end of
subparagraph (C)(ii) and inserting ‘‘; and’’; and
(D) by striking ‘‘employees, by—’’ in sub-
paragraph (D) and all that follows through the
period at the end of subparagraph (E) and in-
serting ‘‘employees, by the Secretary of Trans-
portation.’’.
SEC. 302. REORGANIZATION OF THE AIR TRAFFIC SERV-
ICES SUBCOMMITTEE.
Section 106(p) is amended—
(1) in paragraph (3)—
(A) by striking ‘‘(A) NO FEDERAL OFFI-
CER OR EMPLOYEE.—’’;
(B) by striking ‘‘or (2)(E)’’ and inserting
‘‘or to the Air Traffic Services Board’’; and
(C) by striking subparagraphs (B) and
(C);
(2) in paragraph (4)(C) by inserting ‘‘or Air
Traffic Services Board’’ after ‘‘Council’’ each place
it appears;
(3) in paragraph (5) by inserting ‘‘, the Air
Traffic Services Board,’’ after ‘‘Council’’;
(4) in paragraph (6)(C)—
(A) by striking ‘‘SUBCOMMITTEE’’ in the
subparagraph heading and inserting ‘‘BOARD’’;
(B) by striking ‘‘member’’ and inserting
‘‘members’’;
(C) by striking ‘‘under paragraph (2)(E)’’
the first place it appears and inserting ‘‘to the
Air Traffic Services Board’’; and
(D) by striking ‘‘of the members first’’ and
all that follows through the period at the end
and inserting ‘‘the first members of the Board
shall be the members of the Air Traffic Services
Subcommittee of the Council on the day before
the date of enactment of the Flight 100—Cen-
tury of Aviation Reauthorization Act who shall
serve as members of the Board until their re-
spective terms as members of the Subcommittee
would have ended under this subparagraph, as
in effect on such day.’’;
(5) in paragraph (6)(D) by striking ‘‘under
paragraph (2)(E)’’ and inserting ‘‘to the Board’’;
(6) in paragraph (6)(E) by inserting ‘‘or
Board’’ after ‘‘Council’’;
(7) in paragraph (6)(F) by inserting ‘‘of the
Council or Board’’ after ‘‘member’’;
(8) in the second sentence of subparagraph
(6)(G)—
(A) by striking ‘‘Council’’ and inserting
‘‘Board’’; and
(B) by striking ‘‘appointed under para-
graph (2)(E)’’;
(9) in paragraph (6)(H)—
(A) by striking ‘‘SUBCOMMITTEE’’ in the
subparagraph heading and inserting ‘‘BOARD’’;
(B) by striking ‘‘under paragraph (2)(E)’’
in clause (i) and inserting ‘‘to the Board’’; and
(C) by striking ‘‘Air Traffic Services Sub-
committee’’ and inserting ‘‘Board’’;
(10) in paragraph (6)(I)(i)—
(A) by striking ‘‘appointed under para-
graph (2)(E) is’’ and inserting ‘‘is serving as’’;
and
(B) by striking ‘‘Subcommittee’’ and in-
serting ‘‘Board’’;
(11) in paragraph (6)(I)(ii)—
(A) by striking ‘‘appointed under para-
graph (2)(E)’’ and inserting ‘‘who is a member
of the Board’’; and
(B) by striking ‘‘Subcommittee’’ and in-
serting ‘‘Board’’;
(12) in paragraph (6)(K) by inserting ‘‘or
Board’’ after ‘‘Council’’;
(13) in paragraph (6)(L) by inserting ‘‘or
Board’’ after ‘‘Council’’ each place it appears; and
(14) in paragraph (7)—
(A) by striking ‘‘SUBCOMMITTEE’’ in the
paragraph heading and inserting ‘‘BOARD’’;
(B) by striking subparagraph (A) and in-
serting the following:
‘‘(A) 
ESTABLISHMENT.—The 
Adminis-
trator shall establish a board that is inde-
pendent of the Council by converting the Air
Traffic Services Subcommittee of the Council,
as in effect on the day before the date of enact-
ment of the Flight 100—Century of Aviation
Reauthorization Act, into such board. The
board shall be known as the Air Traffic Serv-
ices Board (in this subsection referred to as the
‘Board’).’’;
(C) by redesignating subparagraphs (B)
through (F) as subparagraphs (D) through
(H), respectively;
(D) by inserting after subparagraph (A)
the following:
‘‘(B) 
MEMBERSHIP
AND
QUALIFICA-
TIONS.—Subject to paragraph (6)(C), the
Board shall consist of 5 members, one of whom
shall be the Administrator and shall serve as
chairperson. The remaining members shall be
appointed by the President with the advice and
consent of the Senate and—
‘‘(i) shall have a fiduciary responsi-
bility to represent the public interest;
‘‘(ii) shall be citizens of the United
States; and
‘‘(iii) shall be appointed without re-
gard to political affiliation and solely on
the basis of their professional experience
and expertise in one or more of the fol-
lowing areas and, in the aggregate, should
collectively bring to bear expertise in all of
the following areas:
‘‘(I) Management of large service
organizations.
‘‘(II) Customer service.
‘‘(III) Management of large pro-
curements.
‘‘(IV) Information and commu-
nications technology.
‘‘(V) Organizational development.
‘‘(VI) Labor relations.
‘‘(C) PROHIBITIONS
ON
MEMBERS
OF
BOARD.—No member of the Board may—
‘‘(i) have a pecuniary interest in, or
own stock in or bonds of, an aviation or
aeronautical enterprise, except an interest
in a diversified mutual fund or an interest
that is exempt from the application of sec-
tion 208 of title 18;
‘‘(ii) engage in another business re-
lated to aviation or aeronautics; or
‘‘(iii) be a member of any organization
that engages, as a substantial part of its
activities, in activities to influence aviation-
related legislation.’’;
(E) by striking ‘‘Subcommittee’’ each place
it appears in subparagraphs (D) and (E) (as
redesignated by subparagraph (C) of this para-
graph) and inserting ‘‘Board’’;
(F) by striking ‘‘approve’’ in subparagraph
(E)(v)(I) (as so redesignated) and inserting
‘‘make recommendations on’’;
(G) by striking ‘‘request’’ in subparagraph
(E)(v)(II) (as so redesignated) and inserting
‘‘recommendations’’;
(H) by striking ‘‘ensure that the budget
request supports’’ in subparagraph (E)(v)(III)
(as so redesignated) and inserting ‘‘base such
budget recommendations on’’;
(I) by striking ‘‘The Secretary shall sub-
mit’’ in subparagraph (E) (as so redesignated)
and all that follows through the period at the
end of such subparagraph (E) and inserting
‘‘The Secretary shall submit the budget rec-
ommendations referred to in clause (v) to the
President who shall transmit such recommenda-
tions to the Committee on Transportation and
Infrastructure and the Committee on Appro-
priations of the House of Representatives and
the Committee on Commerce, Science, and
Transportation and the Committee on Appro-
priations of the Senate together with the annual
budget request of the Federal Aviation Admin-
istration.’’;
(J) by striking subparagraph (F) (as so re-
designated) and inserting the following:
‘‘(F) BOARD PERSONNEL MATTERS.—The
Board may appoint and terminate any per-
sonnel that may be necessary to enable the
Board to perform its duties, and may procure
temporary and intermittent services under sec-
tion 40122.’’;
(K) in subparagraph (G) (as so redesig-
nated)—
(i) by striking clause (i);
(ii) by redesignating clauses (ii), (iii),
and (iv) as clauses (i), (ii), and (iii), re-
spectively; and
(iii) by striking ‘‘Subcommittee’’ each
place it appears in clauses (i), (ii), and (iii)
(as 
so 
redesignated) 
and 
inserting
‘‘Board’’;
(L) in subparagraph (H) (as so redesig-
nated)—
(i) by striking ‘‘Subcommittee’’ each
place it appears and inserting ‘‘Board’’;
(ii) by striking ‘‘Administrator, the
Council’’ each place it appears in clauses
(i) and (ii) and inserting ‘‘Secretary’’; and
(iii) in clause (ii) by striking ‘‘(B)(i)’’
and inserting ‘‘(D)(i)’’; and
(M) by adding at the end the following:
‘‘(I) AUTHORIZATION.—There are author-
ized to be appropriated to the Board such sums
as may be necessary for the Board to carry out
its activities.’’.
SEC. 303. CLARIFICATION OF THE RESPONSIBILITIES OF
THE CHIEF OPERATING OFFICER.
Section 106(r) is amended—
(1) in each of paragraphs (1)(A) and (2)(A) by
striking ‘‘Air Traffic Services Subcommittee of the
Aviation Management Advisory Council’’ and insert-
ing ‘‘Air Traffic Services Board’’;
(2) in paragraph (2)(B) by inserting ‘‘in’’ be-
fore ‘‘paragraph (3).’’;
(3) in paragraph (3) by striking ‘‘Air Traffic
Control Subcommittee of the Aviation Management
Advisory Committee’’ and inserting ‘‘Air Traffic
Services Board’’;
(4) in paragraph (4) by striking ‘‘Transpor-
tation and Congress’’ and inserting ‘‘Transportation,
the Committee on Transportation and Infrastructure
of the House of Representatives, and the Committee
on Commerce, Science, and Transportation of the
Senate’’;
(5) in paragraph (5)(A)—
(A) by striking ‘‘develop a’’ and inserting
‘‘implement the’’; and
(B) by striking ‘‘, including the establish-
ment of’’ and inserting ‘‘in order to further’’;
(6) in paragraph (5)(B)—
(A) by striking ‘‘review’’ and all that fol-
lows through ‘‘Administration,’’ and inserting
‘‘oversee the day-to-day operational functions of
the Administration for air traffic control,’’;
(B) by striking ‘‘and’’ at the end of clause
(ii);
(C) by striking the period at the end of
clause (iii) and inserting ‘‘; and’’; and
(D) by adding at the end the following:
‘‘(iv) the management of cost-reim-
bursable contracts.’’;
(7) in paragraph (5)(C)(i) by striking ‘‘pre-
pared by the Administrator’’;
(8) in paragraph (5)(C)(ii) by striking ‘‘and the
Secretary of Transportation’’ and inserting ‘‘and the
Board’’; and
(9) in paragraph (5)(C)(iii)—
(A) by inserting ‘‘agency’s’’ before ‘‘an-
nual’’; and
(B) by striking ‘‘developed under subpara-
graph (A) of this subsection.’’ and inserting
‘‘for air traffic control services.’’.
SEC. 304. SMALL BUSINESS OMBUDSMAN.
Section 106 is amended by adding at the end the fol-
lowing:
‘‘(s) SMALL BUSINESS OMBUDSMAN.—
‘‘(1) ESTABLISHMENT.—There shall be in the
Administration a Small Business Ombudsman.
‘‘(2) GENERAL
DUTIES
AND
RESPONSIBIL-
ITIES.—The Ombudsman shall—
‘‘(A) be appointed by the Administrator;
‘‘(B) serve as a liaison with small busi-
nesses in the aviation industry;
‘‘(C) be consulted when the Administrator
proposes regulations that may affect small busi-
nesses in the aviation industry;
‘‘(D) provide assistance to small businesses
in resolving disputes with the Administration;
and
‘‘(E) report directly to the Adminis-
trator.’’.
SEC. 305. FAA PURCHASE CARDS.
(a) IN GENERAL.—The Administrator of the Federal
Aviation Administration shall take appropriate actions to
implement the recommendations contained in the report
of the General Accounting Office entitled ‘‘FAA Purchase
Cards: Weak Controls Resulted in Instances of Improper
and Wasteful Purchases and Missing Assets’’, numbered
GAO–03–405 and dated March 21, 2003.
(b) REPORT.—Not later than 1 year after the date
of enactment of this Act, the Administrator shall transmit
to Congress a report containing a description of the ac-
tions taken by the Administrator under this section.
TITLE IV—AIRLINE SERVICE
IMPROVEMENTS
SEC. 401. IMPROVEMENT OF AVIATION INFORMATION COL-
LECTION.
(a) IN GENERAL.—Section 329(b)(1) is amended by
striking ‘‘except that in no case’’ and all that follows
through the semicolon at the end.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect on the date of the issuance
of a final rule to modernize the Origin and Destination
Survey of Airline Passenger Traffic, pursuant to the Ad-
vance Notice of Proposed Rulemaking published July 15,
1998 (Regulation Identifier Number 2105–AC71), that
reduces the reporting burden for air carriers through elec-
tronic filing of the survey data collected under section
329(b)(1) of title 49, United States Code.
SEC. 402. DATA ON INCIDENTS AND COMPLAINTS INVOLV-
ING PASSENGER AND BAGGAGE SECURITY
SCREENING.
Section 329 is amended by adding at the end the fol-
lowing:
‘‘(e) INCIDENTS AND COMPLAINTS INVOLVING PAS-
SENGER AND BAGGAGE SECURITY SCREENING.—
‘‘(1) PUBLICATION OF DATA.—The Secretary of
Transportation shall publish data on incidents and
complaints involving passenger and baggage security
screening in a manner comparable to other con-
sumer complaint and incident data.
‘‘(2) MONTHLY REPORTS FROM SECRETARY OF
HOMELAND SECURITY.—To assist in the publication
of data under paragraph (1), the Secretary of
Transportation may request the Secretary of Home-
land Security to periodically report on the number of
complaints about security screening received by the
Secretary of Homeland Security.’’.
SEC. 403. DEFINITIONS.
(a) IN GENERAL.—Section 40102(a) is amended—
(1) by redesignating paragraphs (38) through
(42) as paragraphs (43) through (47), respectively;
(2) by inserting after paragraph (37) the fol-
lowing:
‘‘(42) ‘small hub airport’ means a commercial
service airport (as defined in section 47102) that
has at least 0.05 percent but less than 0.25 percent
of the passenger boardings.’’;
(3) by redesignating paragraphs (33) through
(37) as paragraphs (37) through (41) respectively;
(4) by inserting after paragraph (32) the fol-
lowing:
‘‘(36) ‘passenger boardings’—
‘‘(A) means, unless the context indicates
otherwise, revenue passenger boardings in the
United States in the prior calendar year on an
aircraft in service in air commerce, as the Sec-
retary determines under regulations the Sec-
retary prescribes; and
‘‘(B) includes passengers who continue on
an aircraft in international flight that stops at
an airport in the 48 contiguous States, Alaska,
or Hawaii for a nontraffic purpose.’’;
(5) by redesignating paragraph (32) as para-
graph (35);
(6) by inserting after paragraph (31) the fol-
lowing:
‘‘(34) ‘nonhub airport’ means a commercial
service airport (as defined in section 47102) that
has less than 0.05 percent of the passenger
boardings.’’;
(7) by redesignating paragraphs (30) and (31)
as paragraphs (32) and (33), respectively;
(8) by inserting after paragraph (29) the fol-
lowing:
‘‘(31) ‘medium hub airport’ means a commer-
cial service airport (as defined in section 47102)
that has at least 0.25 percent but less than 1.0 per-
cent of the passenger boardings.’’;
(9) by redesignating paragraph (29) as para-
graph (30); and
(10) by inserting after paragraph (28) the fol-
lowing:
‘‘(29) ‘large hub airport’ means a commercial
service airport (as defined in section 47102) that
has 
at 
least 
1.0 
percent 
of 
the 
passenger
boardings.’’.
(b) CONFORMING AMENDMENTS.—
(1) AIR SERVICE TERMINATION NOTICE.—Sec-
tion 41719(d) is amended—
(A) by striking paragraph (1); and
(B) 
by 
redesignating 
paragraphs 
(2)
through (5) as paragraphs (1) through (4), re-
spectively.
(2) SMALL COMMUNITY AIR SERVICE.—Section
41731(a) is amended by striking paragraphs (3)
through (5).
(3) AIRPORTS
NOT
RECEIVING
SUFFICIENT
SERVICE.—Section 41743 is amended—
(A) in subsection (c)(1) by striking ‘‘(as
that term is defined in section 41731(a)(5))’’;
and
(B) in subsection (f) by striking ‘‘(as de-
fined in section 41731(a)(3))’’.
(4) PRESERVATION OF BASIC ESSENTIAL AIR
SERVICE AT SINGLE CARRIER DOMINATED HUB AIR-
PORTS.—Section 41744(b) is amended by striking
‘‘(as defined in section 41731)’’.
(5) REGIONAL
AIR
SERVICE
INCENTIVE
PRO-
GRAM.—Section 41762 is amended—
(A) by striking paragraphs (11) and (15);
and
(B) by redesignating paragraphs (12),
(13), (14), and (16) as paragraphs (11), (12),
(13), and (14), respectively.
SEC. 404. CLARIFICATIONS TO PROCUREMENT AUTHORITY.
(a) DUTIES
AND POWERS.—Section 40110(c) is
amended—
(1) by striking ‘‘Administration—’’ and all that
follows through ‘‘(2) may—’’ and inserting ‘‘Admin-
istration may—’’;
(2) by striking subparagraph (D);
(3) by redesignating subparagraphs (A), (B),
(C), (E), and (F) as paragraphs (1), (2), (3), (4),
and (5) respectively; and
(4) by moving such paragraphs (1) through (5)
2 ems to the left.
(b) ACQUISITION MANAGEMENT SYSTEM.—Section
40110(d) is amended—
(1) in paragraph (1)—
(A) by striking ‘‘, not later than January
1, 1996,’’; and
(B) by striking ‘‘provides for more timely
and cost-effective acquisitions of equipment and
materials.’’ and inserting the following:
‘‘provides for—
‘‘(A) more timely and cost-effective acqui-
sitions of equipment, services, property, and
materials; and
‘‘(B) the resolution of bid protests and
contract disputes related thereto, using consen-
sual alternative dispute resolution techniques to
the maximum extent practicable.’’; and
(2) by striking paragraph (4), relating to the
effective date, and inserting the following:
‘‘(4) ADJUDICATION OF CERTAIN BID PROTESTS
AND CONTRACT DISPUTES.—A bid protest or con-
tract dispute that is not addressed or resolved
through alternative dispute resolution shall be adju-
dicated by the Administrator through Dispute Reso-
lution Officers or Special Masters of the Federal
Aviation Administration Office of Dispute Resolution
for Acquisition, acting pursuant to sections 46102,
46104, 46105, 46106 and 46107.’’.
(c) AUTHORITY
OF ADMINISTRATOR TO ACQUIRE
SERVICES.—Section 106(f)(2)(A)(ii) is amended by in-
serting ‘‘, services,’’ after ‘‘property’’.
SEC. 405. LOW-EMISSION AIRPORT VEHICLES AND GROUND
SUPPORT EQUIPMENT.
(a) IN GENERAL.—Section 40117(a)(3) is amended
by inserting at the end the following:
‘‘(G) A project for the acquisition or con-
version of ground support equipment or airport-
owned vehicles used at a commercial service air-
port with, or to, low-emission technology (as de-
fined in section 47102) or cleaner burning con-
ventional fuels, or the retrofitting of such
equipment or vehicles that are powered by a
diesel or gasoline engine with emission control
technologies certified or verified by the Environ-
mental Protection Agency to reduce emissions,
if the airport is located in an air quality non-
attainment area (as defined in section 171(2) of
the Clean Air Act (42 U.S.C. 7501(2)) or a
maintenance area referred to in section 175A of
such Act (42 U.S.C. 7505a), and if such project
will result in an airport receiving appropriate
emission 
credits 
as 
described 
in 
section
47138.’’.
(b) MAXIMUM COST FOR CERTAIN LOW-EMISSION
TECHNOLOGY PROJECTS.—Section 40117(b) is amended
by adding at the end the following:
‘‘(5) MAXIMUM COST FOR CERTAIN LOW-EMIS-
SION TECHNOLOGY PROJECTS.—The maximum cost
that may be financed by imposition of a passenger
facility fee under this section for a project described
in subsection (a)(3)(G) with respect to vehicle or
ground support equipment may not exceed the incre-
mental amount of the project cost that is greater
than the cost of acquiring a vehicle or equipment
that is not low-emission and would be used for the
same purpose, or the cost of low-emission retro-
fitting, as determined by the Secretary.’’.
(c) GROUND SUPPORT EQUIPMENT DEFINED.—Sec-
tion 40117(a) is amended—
(1) by redesignating paragraphs (4) and (5) as
paragraphs (5) and (6), respectively;
(2) by inserting after paragraph (3) the fol-
lowing:
‘‘(4) 
GROUND
SUPPORT
EQUIPMENT.—The
term ‘ground support equipment’ means service and
maintenance equipment used at an airport to sup-
port aeronautical operations and related activities.’’.
SEC. 406. STREAMLINING OF THE PASSENGER FACILITY
FEE PROGRAM.
(a) 
APPLICATION
REQUIREMENTS.—Section
40117(c) is amended—
(1) by adding at the end of paragraph (2) the
following:
‘‘(E) The agency will include in its application
or notice submitted under subparagraph (A) copies
of all certifications of agreement or disagreement re-
ceived under subparagraph (D).
‘‘(F) For the purpose of this section, an eligible
agency providing notice and an opportunity for con-
sultation to an air carrier or foreign air carrier is
deemed to have satisfied the requirements of this
paragraph if the eligible agency limits such notices
and consultations to air carriers and foreign air car-
riers that have a significant business interest at the
airport. In the subparagraph, the term ‘significant
business interest’ means an air carrier or foreign air
carrier that had no less than 1.0 percent of pas-
senger boardings at the airport in the prior calendar
year, had at least 25,000 passenger boardings at the
airport in the prior calendar year, or provides sched-
uled service at the airport.’’;
(2) by redesignating paragraph (3) as para-
graph (4);
(3) by inserting after paragraph (2) the fol-
lowing:
‘‘(3) Before submitting an application, the eligible
agency must provide reasonable notice and an opportunity
for public comment. The Secretary shall prescribe regula-
tions that define reasonable notice and provide for at least
the following under this paragraph:
‘‘(A) A requirement that the eligible agency
provide public notice of intent to collect a passenger
facility fee so as to inform those interested persons
and agencies who may be affected, which public no-
tice may include—
‘‘(i) publication in local newspapers of gen-
eral circulation;
‘‘(ii) publication in other local media; and
‘‘(iii) posting the notice on the agency’s
Web site.
‘‘(B) A requirement for submission of public
comments no sooner than 30 days, and no later than
45 days, after the date of the publication of the no-
tice.
‘‘(C) A requirement that the agency include in
its application or notice submitted under subpara-
graph (A) copies of all comments received under
subparagraph (B).’’; and
(4) in the first sentence of paragraph (4) (as
redesignated by paragraph (2) of this subsection) by
striking ‘‘shall’’ and inserting ‘‘may’’.
(b) PILOT PROGRAM FOR PASSENGER FACILITY FEE
AUTHORIZATIONS
AT
NONHUB
AIRPORTS.—Section
40117 is amended by adding at the end the following:
‘‘(l) PILOT PROGRAM FOR PASSENGER FACILITY FEE
AUTHORIZATIONS AT NONHUB AIRPORTS.—
‘‘(1) IN GENERAL.—The Secretary shall estab-
lish a pilot program to test alternative procedures
for authorizing eligible agencies for nonhub airports
to impose passenger facility fees. An eligible agency
may impose in accordance with the provisions of this
subsection a passenger facility fee under this section.
For purposes of the pilot program, the procedures in
this subsection shall apply instead of the procedures
otherwise provided in this section.
‘‘(2) NOTICE
AND
OPPORTUNITY
FOR
CON-
SULTATION.—The eligible agency must provide rea-
sonable notice and an opportunity for consultation to
air carriers and foreign air carriers in accordance
with subsection (c)(2) and must provide reasonable
notice and opportunity for public comment in ac-
cordance with subsection (c)(3).
‘‘(3) NOTICE
OF
INTENTION.—The eligible
agency must submit to the Secretary a notice of in-
tention to impose a passenger facility fee under this
subsection. This shall include—
‘‘(A) information that the Secretary may
require by regulation on each project for which
authority to impose a passenger facility fee is
sought;
‘‘(B) the amount of revenue from pas-
senger facility fees that is proposed to be col-
lected for each project; and
‘‘(C) the level of the passenger facility fee
that is proposed.
‘‘(4) ACKNOWLEDGEMENT OF RECEIPT AND IN-
DICATION OF OBJECTION.—The Secretary shall ac-
knowledge receipt of the notice and indicate any ob-
jection to the imposition of a passenger facility fee
under this subsection for any project identified in
the notice within 30 days after receipt of the eligible
agency’s notice.
‘‘(5) AUTHORITY TO IMPOSE FEE.—Unless the
Secretary objects within 30 days after receipt of the
eligible agency’s notice, the eligible agency is author-
ized to impose a passenger facility fee in accordance
with the terms of its notice under this subsection.
‘‘(6) DEADLINE.—Not later than 180 days
after the date of enactment of this subsection, the
Secretary shall propose such regulations as may be
necessary to carry out this subsection.
‘‘(7) SUNSET.—This subsection shall not be in
effect 3 years after the date of issuance of regula-
tions to carry out this subsection.
‘‘(8) ACKNOWLEDGEMENT NOT AN ORDER.—An
acknowledgement issued under paragraph (4) shall
not be considered an order of the Secretary issued
under section 46110.’’.
(c) CLARIFICATION OF APPLICABILITY OF PFCS TO
MILITARY
CHARTERS.—Section 
40117(e)(2) 
is
amended—
(1) by striking the period at the end of sub-
paragraph (C) and inserting a semicolon;
(2) by striking ‘‘and’’ at the end of subpara-
graph (D);
(3) by striking the period at the end of sub-
paragraph (E) and inserting ‘‘; and’’; and
(4) by inserting after subparagraph (E) the fol-
lowing:
‘‘(F) enplaning at an airport if the passenger
did not pay for the air transportation which resulted
in such enplanement due to charter arrangements
and payment by the Department of Defense.’’.
(d) 
TECHNICAL
AMENDMENTS.—Section
40117(a)(3)(C) is amended—
(1) by striking ‘‘for costs’’ and inserting ‘‘A
project’’; and
(2) by striking the semicolon and inserting a
period.
(e) ELIGIBILITY
OF
AIRPORT
GROUND
ACCESS
TRANSPORTATION PROJECTS.—Not later than 60 days
after the enactment of this Act, the Administrator of the
Federal Aviation Administration shall publish in the Fed-
eral Register the current policy of the Administration with
respect to the eligibility of airport ground access transpor-
tation projects for the use of passenger facility fees under
section 40117 of title 49, United States Code.
SEC. 407. FINANCIAL MANAGEMENT OF PASSENGER FACIL-
ITY FEES.
(a) IN GENERAL.—Section 40117 is further amended
by adding at the end the following:
‘‘(m) FINANCIAL MANAGEMENT OF FEES.—
‘‘(1) HANDLING OF FEES.—
‘‘(A) PLACEMENT OF FEES IN ESCROW AC-
COUNT.—Subject to subparagraph (B), pas-
senger facility revenue held by an air carrier or
any of its agents shall be segregated from the
carrier’s cash and other assets and placed in an
escrow account for the benefit of the eligible
agencies entitled to such revenue.
‘‘(B) ALTERNATIVE METHOD OF COMPLI-
ANCE.—Instead of placing amounts in an es-
crow account under subparagraph (A), an air
carrier may provide to the eligible agency a let-
ter of credit, bond, or other form of adequate
and immediately available security in an
amount equal to estimated remittable passenger
facility fees for 180 days, to be assessed against
later audit, upon which security the eligible
agency shall be entitled to draw automatically,
without necessity of any further legal or judicial
action to effectuate foreclosure.
‘‘(2) TRUST FUND STATUS.—If an air carrier or
its agent commingles passenger facility revenue in
violation of the subsection, the trust fund status of
such revenue shall not be defeated by an inability of
any party to identify and trace the precise funds in
the accounts of the air carrier.
‘‘(3) PROHIBITION.—An air carrier and its
agents may not grant to any third party any secu-
rity or other interest in passenger facility revenue.
‘‘(4) COMPENSATION TO ELIGIBLE ENTITIES.—
An air carrier that fails to comply with any require-
ment of this subsection, or otherwise unnecessarily
causes an eligible entity to expend funds, through
litigation or otherwise, to recover or retain payment
of passenger facility revenue to which the eligible en-
tity is otherwise entitled shall be required to com-
pensate the eligible agency for the costs so incurred.
‘‘(5) INTEREST ON AMOUNTS.—An air carrier
that collects passenger facility fees is entitled to re-
ceive the interest on passenger facility fee accounts,
if the accounts are established and maintained in
compliance with this subsection.’’.
(b) EFFECTIVE DATE.—
(1) IN
GENERAL.—The amendment made by
subsection (a) shall take effect 60 days after the
date of enactment of this Act.
(2) EXISTING
REGULATIONS.—Beginning 60
days after the date of enactment of this Act, the
provisions of section 158.49 of title 14, Code of Fed-
eral Regulations, that permit the commingling of
passenger facility fees with other air carrier revenue
shall have no force or effect.
SEC. 408. GOVERNMENT CONTRACTING FOR AIR TRANS-
PORTATION.
(a) 
GOVERNMENT-FINANCED
AIR
TRANSPOR-
TATION.—Section 40118(f)(2) is amended by inserting be-
fore the period at the end the following: ‘‘, except that
it shall not include a contract for the transportation by
air of passengers’’.
(b) AIRLIFT SERVICE.—Subsections (a)(1), (b), and
(c) of section 41106 are each amended—
(1) by striking ‘‘through a contract for airlift
service’’ and inserting ‘‘, or by a person that has
contracted with the Secretary of Defense or the Sec-
retary of a military department,’’; and
(2) by inserting ‘‘through a contract for airlift
service’’ after ‘‘obtained’’.
SEC. 409. OVERFLIGHTS OF NATIONAL PARKS.
(a) AIR
TOUR
MANAGEMENT
ACT
CLARIFICA-
TIONS.—Section 40128 is amended—
(1) in subsection (a)(1) by inserting ‘‘, as de-
fined by this section,’’ after ‘‘lands’’ the first place
it appears;
(2) in subsections (b)(3)(A) and (b)(3)(B) by
inserting ‘‘over a national park’’ after ‘‘operations’’;
(3) in subsection (b)(3)(C) by inserting ‘‘over a
national park that are also’’ after ‘‘operations’’;
(4) in subsection (b)(3)(D) by striking ‘‘at the
park’’ and inserting ‘‘over a national park’’;
(5) in subsection (b)(3)(E) by inserting ‘‘over a
national park’’ after ‘‘operations’’ the first place it
appears;
(6) in subsections (c)(2)(A)(i) and (c)(2)(B) by
inserting ‘‘over a national park’’ after ‘‘operations’’;
(7) in subsection (f)(1) by inserting ‘‘over a na-
tional park’’ after ‘‘operation’’;
(8) in subsection (f)(4)(A)—
(A) by striking ‘‘commercial air tour oper-
ation’’ and inserting ‘‘commercial air tour oper-
ation over a national park’’; and
(B) by striking ‘‘park, or over tribal
lands,’’ and inserting ‘‘park (except the Grand
Canyon National Park), or over tribal lands
(except those within or abutting the Grand
Canyon National Park),’’;
(9) in subsection (f)(4)(B) by inserting ‘‘over a
national park’’ after ‘‘operation’’; and
(10) in the heading for paragraph (4) of sub-
section (f) by inserting ‘‘OVER A NATIONAL PARK’’
after ‘‘OPERATION’’.
(b) GRAND
CANYON
NATIONAL
PARK
SPECIAL
FLIGHT RULES AREA OPERATION CURFEW.—
collaborative decisionmaking pilot program in accordance
with this section.
‘‘(b) DURATION.—Except as provided in subsection
(k), the pilot program shall be in effect for a period of
2 years.
‘‘(c) GUIDELINES.—
‘‘(1) ISSUANCE.—The Administrator shall issue
guidelines concerning the pilot program. Such guide-
lines, at a minimum, shall define the criteria and
process for determining when a capacity reduction
event exists that warrants the use of collaborative
decisionmaking among carriers at airports partici-
pating in the pilot program and that prescribe the
methods of communication to be implemented among
carriers during such an event.
‘‘(2) VIEWS.—The Administrator may obtain
the views of interested parties in issuing the guide-
lines.
‘‘(d) EFFECT OF DETERMINATION OF EXISTENCE OF
CAPACITY REDUCTION EVENT.—Upon a determination by
the Administrator that a capacity reduction event exists,
the Administrator may authorize air carriers and foreign
air carriers operating at an airport participating in the
pilot program to communicate for a period of time not
to exceed 24 hours with each other concerning changes
in their respective flight schedules in order to use air traf-
fic capacity most effectively. The Administration shall fa-
cilitate and monitor such communication.
‘‘(e) SELECTION OF PARTICIPATING AIRPORTS.—Not
later than 30 days after the date on which the Adminis-
trator establishes the pilot program, the Administrator
shall select 3 airports to participate in the pilot program
from among the most capacity-constrained airports in the
country based on the Administration’s Airport Capacity
Benchmark Report 2001 or more recent data on airport
capacity that is available to the Administrator. The Ad-
ministrator shall select an airport for participation in the
pilot program if the Administrator determines that col-
laborative decisionmaking among air carriers and foreign
air carriers would reduce delays at the airport and have
beneficial effects on reducing delays in the national air-
space system as a whole.
‘‘(f) ELIGIBILITY OF AIR CARRIERS.—An air carrier
or foreign air carrier operating at an airport selected to
participate in the pilot program is eligible to participate
in the pilot program if the Administrator determines that
the carrier has the operational and communications capa-
bility to participate in the pilot program.
‘‘(g) MODIFICATION
OR TERMINATION
OF PILOT
PROGRAM AT AN AIRPORT.—The Administrator may mod-
ify or end the pilot program at an airport before the term
of the pilot program has expired, or may ban an air carrier
or foreign air carrier from participating in the program,
if the Administrator determines that the purpose of the
pilot program is not being furthered by participation of
the airport or air carrier or if the Secretary of Transpor-
tation finds that the pilot program or the participation
of an air carrier or foreign air carrier in the pilot program
has had, or is having, an adverse effect on competition
among carriers.
‘‘(h) EVALUATION.—
‘‘(1) IN
GENERAL.—Before the expiration of
the 2-year period for which the pilot program is au-
thorized under subsection (b), the Administrator
shall determine whether the pilot program has facili-
tated more effective use of air traffic capacity and
the Secretary shall determine whether the pilot pro-
gram has had an adverse effect on airline competi-
tion or the availability of air services to commu-
nities. The Administrator shall also examine whether
capacity benefits resulting from the participation in
the pilot program of an airport resulted in capacity
benefits to other parts of the national airspace sys-
tem.
‘‘(2) OBTAINING NECESSARY DATA.—The Ad-
ministrator may require participating air carriers
and airports to provide data necessary to evaluate
the pilot program’s impact.
‘‘(i) EXTENSION OF PILOT PROGRAM.—At the end
of the 2-year period for which the pilot program is author-
ized, the Administrator may continue the pilot program
for an additional 2 years and expand participation in the
program to up to 7 additional airports if the Adminis-
trator determines pursuant to subsection (h) that the pilot
program has facilitated more effective use of air traffic
capacity and if the Secretary determines that the pilot pro-
gram has had no adverse effect on airline competition or
the availability of air services to communities. The Admin-
istrator shall select the additional airports to participate
in the extended pilot program in the same manner in
which airports were initially selected to participate.’’.
(b) CONFORMING AMENDMENT.—The analysis for
chapter 401 is amended by adding at the end the fol-
lowing:
‘‘40129. Collaborative decisionmaking pilot program.’’.
SEC. 411. AVAILABILITY OF AIRCRAFT ACCIDENT SITE IN-
FORMATION.
(a) 
DOMESTIC
AIR
TRANSPORTATION.—Section
41113(b) is amended—
(1) in paragraph (16) by striking ‘‘the air car-
rier’’ the third place it appears; and
(2) by adding at the end the following:
‘‘(17)(A) An assurance that, in the case of an
accident that results in significant damage to a man-
made structure or other property on the ground that
is not government-owned, the air carrier will
promptly provide notice, in writing, to the extent
practicable, directly to the owner of the structure or
other property about liability for any property dam-
age and means for obtaining compensation.
‘‘(B) At a minimum, the written notice shall
advise an owner (i) to contact the insurer of the
property as the authoritative source for information
about coverage and compensation; (ii) to not rely on
unofficial information offered by air carrier rep-
resentatives about compensation by the air carrier
for accident-site property damage; and (iii) to obtain
photographic or other detailed evidence of property
damage as soon as possible after the accident, con-
sistent with restrictions on access to the accident
site.
‘‘(18) An assurance that, in the case of an acci-
dent in which the National Transportation Safety
Board conducts a public hearing or comparable pro-
ceeding at a location greater than 80 miles from the
accident site, the air carrier will ensure that the pro-
ceeding is made available simultaneously by elec-
tronic means at a location open to the public at both
the origin city and destination city of the air car-
rier’s flight if that city is located in the United
States.’’.
(b) 
FOREIGN
AIR
TRANSPORTATION.—Section
41313(c) is amended by adding at the end the following:
‘‘(17) NOTICE
CONCERNING
LIABILITY
FOR
MAN-MADE STRUCTURES.—
‘‘(A) IN GENERAL.—An assurance that, in
the case of an accident that results in signifi-
cant damage to a man-made structure or other
property on the ground that is not government-
owned, the foreign air carrier will promptly pro-
vide notice, in writing, to the extent practicable,
directly to the owner of the structure or other
property about liability for any property dam-
age and means for obtaining compensation.
‘‘(B) MINIMUM
CONTENTS.—At a min-
imum, the written notice shall advise an owner
(i) to contact the insurer of the property as the
authoritative source for information about cov-
erage and compensation; (ii) to not rely on un-
official information offered by foreign air car-
rier representatives about compensation by the
foreign air carrier for accident-site property
damage; and (iii) to obtain photographic or
other detailed evidence of property damage as
soon as possible after the accident, consistent
with restrictions on access to the accident site.
‘‘(18) SIMULTANEOUS
ELECTRONIC
TRANS-
MISSION OF NTSB HEARING.—An assurance that, in
the case of an accident in which the National Trans-
portation Safety Board conducts a public hearing or
comparable proceeding at a location greater than 80
miles from the accident site, the foreign air carrier
will ensure that the proceeding is made available si-
multaneously by electronic means at a location open
to the public at both the origin city and destination
city of the foreign air carrier’s flight if that city is
located in the United States.’’.
(c) UPDATE PLANS.—Air carriers and foreign air
carriers shall update their plans under sections 41113 and
41313 of title 49, United States Code, respectively, to re-
flect the amendments made by subsections (a) and (b) of
this section not later than 90 days after the date of enact-
ment of this Act.
SEC. 412. SLOT EXEMPTIONS AT RONALD REAGAN WASH-
INGTON NATIONAL AIRPORT.
(a) 
BEYOND-PERIMETER
EXEMPTIONS.—Section
41718(a) is amended by striking ‘‘12’’ and inserting ‘‘24’’.
(b) 
WITHIN-PERIMETER
EXEMPTIONS.—Section
41718(b) is amended—
(1) by striking ‘‘12’’ and inserting ‘‘20’’; and
(2) by striking ‘‘that were designated as me-
dium hub or smaller airports’’.
(c) LIMITATIONS.—
(1) 
GENERAL
EXEMPTIONS.—Section
41718(c)(2) is amended by striking ‘‘two’’ and in-
serting ‘‘3’’.
(2) ALLOCATION
OF
WITHIN-PERIMETER
EX-
EMPTIONS.—Section 41718(c)(3) is amended—
(A) in subparagraph (A)—
(i) by striking ‘‘four’’ and inserting
‘‘without regard to the criteria contained
in subsection (b)(1), six’’; and
(ii) by striking ‘‘and’’ at the end;
(B) in subparagraph (B)—
(i) by striking ‘‘eight’’ and inserting
‘‘ten’’; and
(ii) by striking the period at the end
and inserting ‘‘; and’’; and
(C) by adding at the end the following:
‘‘(C) four shall be for air transportation to
airports without regard to their size.’’.
(d) APPLICATION PROCEDURES.—Section 41718(d)
is amended to read as follows:
‘‘(d) APPLICATION PROCEDURES.—The Secretary
shall establish procedures to ensure that all requests for
exemptions under this section are granted or denied within
90 days after the date on which the request is made.’’.
(e) EFFECT OF PERIMETER RULES ON COMPETITION
AND AIR SERVICE.—
(1) IDENTIFICATION
OF
OTHER
AIRPORTS.—
The Secretary of Transportation shall identify air-
ports (other than Ronald Reagan Washington Na-
tional Airport) that have imposed perimeter rules
like those in effect with respect to Ronald Reagan
Washington National Airport.
(2) LIMITATION ON APPLICABILITY.—This sub-
section does not apply to perimeter rules imposed by
Federal law.
(3) STUDY.—The Secretary shall conduct a
study of the effect that perimeter rules for airports
identified under paragraph (1) have on competition
and on air service to communities outside the perim-
eter.
(4) REPORT.—Not later than 120 days after
the date of enactment of this Act, the Secretary
shall transmit to Congress a report on the results of
the study.
(f) COMMUTERS DEFINED.—
(1) IN GENERAL.—Section 41718 is amended
by adding at the end the following:
‘‘(f) COMMUTERS DEFINED.—For purposes of air-
craft operations at Ronald Reagan Washington National
Airport under subpart K of part 93 of title 14, Code of
Federal Regulations, the term ‘commuters’ means aircraft
operations using aircraft having a certificated maximum
seating capacity of 76 or less.’’.
(2) REGULATIONS.—The Administrator of the
Federal Aviation Administration shall revise regula-
tions to take into account the amendment made by
paragraph (1).
(g) REMOVAL OF CERTAIN LIMITATIONS ON METRO-
POLITAN WASHINGTON AIRPORTS AUTHORITY.—Section
49108 and the item relating to such section in the analysis
of chapter 491 are repealed.
SEC. 413. NOTICE CONCERNING AIRCRAFT ASSEMBLY.
(a) IN GENERAL.—Subchapter I of chapter 417 is
amended by adding at the end the following:
‘‘§ 41722. Notice concerning aircraft assembly
‘‘The Secretary of Transportation shall require, be-
ginning after the last day of the 1-year period following
the date of enactment of this section, an air carrier using
an aircraft to provide scheduled passenger air transpor-
tation to display a notice, on an information placard avail-
able to each passenger on the aircraft, that informs the
passengers of the nation in which the aircraft was finally
assembled.’’.
(b) CONFORMING AMENDMENT.—The analysis for
chapter 417 is amended by striking the item relating to
section 41721 and inserting the following:
‘‘41721. Reports by carriers on incidents involving animals during air transport.
‘‘41722. Notice concerning aircraft assembly.’’.
SEC. 414. SPECIAL RULE TO PROMOTE AIR SERVICE TO
SMALL COMMUNITIES.
(a) IN GENERAL.—Subchapter I of chapter 417 is
further amended by adding at the end the following:
‘‘§ 41723. Special rule to promote air service to small
communities
‘‘In order to promote air service to small commu-
nities, the Secretary of Transportation shall permit an op-
erator of a turbine powered or multiengine piston powered
aircraft with 10 passenger seats or less (1) to provide air
transportation between an airport that is a nonhub airport
and another airport or between an airport that is not a
commercial service airport and another airport, and (2)
to sell individual seats on that aircraft at a negotiated
price, if the aircraft is otherwise operated in accordance
with parts 119 and 135 of title 14, Code of Federal Regu-
lations, and the air transportation is otherwise provided
in accordance with part 298 of such title 14.’’.
(b) CONFORMING AMENDMENT.—The analysis for
chapter 417 is further amended by adding at the end the
following:
‘‘41723. Special rule to promote air service to small communities.’’.
SEC. 415. SMALL COMMUNITY AIR SERVICE.
(a) COMPENSATION GUIDELINES, LIMITATION, AND
CLAIMS.—
(1) PAYMENT
OF
PROMOTIONAL
AMOUNTS.—
Section 41737(a)(2) is amended by inserting before
the period at the end ‘‘or may be paid directly to the
unit of local government having jurisdiction over the
eligible place served by the air carrier’’.
(2) AUTHORITY
TO
MAKE
AGREEMENTS
AND
INCUR
OBLIGATIONS.—Section 
41737(d) 
is
amended—
(A) by striking ‘‘(1) The Secretary’’ and
inserting the ‘‘The Secretary’’; and
(B) by striking paragraph (2).
(3) ADJUSTMENTS.—Section 41737 is amended
by adding at the end the following:
‘‘(e) ADJUSTMENTS TO ACCOUNT
FOR SIGNIFI-
CANTLY INCREASED COSTS.—
‘‘(1) IN GENERAL.—If the Secretary determines
that air carriers are experiencing significantly in-
creased costs in providing air service or air transpor-
tation under this subchapter, the Secretary may in-
crease the rates of compensation payable under this
subchapter without regard to any agreement or re-
quirement relating to the renegotiation of contracts
or any notice requirement under section 41734.
‘‘(2) SIGNIFICANTLY
INCREASED
COSTS
DE-
FINED.—In this subsection, the term ‘significantly
increased costs’ means an average monthly cost in-
crease of 10 percent or more.’’.
(b) AIRPORTS NOT RECEIVING SUFFICIENT SERV-
ICE.—Section 41743 is amended—
(1) in the heading of subsection (a) by striking
‘‘PILOT’’;
(2) in subsection (a) by striking ‘‘pilot’’;
(3) in subsection (c)—
(A) by striking paragraph (3);
(B) by redesignating paragraphs (4) and
(5) as paragraphs (3) and (4), respectively; and
(C) in paragraph (4) (as so redesig-
nated)—
(i) by striking ‘‘and’’ at the end of
subparagraph (C);
(ii) by striking the period at the end
of subparagraph (D) and inserting ‘‘;
and’’; and
(iii) by adding at the end the fol-
lowing:
‘‘(E) the assistance can be used in the fis-
cal year in which it is received.’’; and
(4) in subsection (f) by striking ‘‘pilot’’.
(c) ESSENTIAL AIR SERVICE AUTHORIZATION.—Sec-
tion 41742 is amended—
(1) 
in 
subsection 
(a)(2) 
by 
striking
‘‘$15,000,000’’ and inserting ‘‘$65,000,000’’;
(2) by adding at the end of subsection (a) the
following:
‘‘(3) AUTHORIZATION
FOR
ADDITIONAL
EM-
PLOYEES.—In addition to amounts authorized under
paragraphs (1) and (2), there are authorized to be
appropriated such sums as may be necessary for the
Secretary of Transportation to hire and employ 4
additional employees for the office responsible for
carrying out the essential air service program.’’; and
(3) by striking subsection (c).
(d) PROCESS FOR DISCONTINUING CERTAIN SUB-
SIDIES.—Section 41734 is amended by adding at the end
the following:
‘‘(i) PROCESS FOR DISCONTINUING CERTAIN SUB-
SIDIES.—If the Secretary determines that no subsidy will
be provided to a carrier to provide essential air service
to an eligible place because the eligible place does not meet
the requirements of section 332 of the Department of
Transportation and Related Agencies Appropriations Act,
2000 (49 U.S.C. 41731 note; 113 Stat. 1022) or require-
ments contained in a subsequent appropriations Act, the
Secretary shall notify the affected community that the
subsidy will cease but shall continue to provide the subsidy
for 90 days after providing the notice to the community.’’.
(e) EXEMPTION FROM HOLD-IN REQUIREMENTS.—
Section 41734 is further amended by adding at the end
the following:
‘‘(j) EXEMPTION FROM HOLD-IN REQUIREMENTS.—
If, after the date of enactment of this subsection, an air
carrier commences air transportation to an eligible place
that is not receiving essential air service as a result of
the failure of the eligible place to meet requirements con-
tained in an appropriations Act, the air carrier shall not
be subject to the requirements of subsections (b) and (c)
with respect to such air transportation.’’.
(f) JOINT PROPOSALS.—Section 41740 is amended
by inserting ‘‘, including joint fares,’’ after ‘‘joint pro-
posals’’.
(g) COMMUNITY
AND
REGIONAL
CHOICE
PRO-
GRAM.—
(1) IN
GENERAL.—Subchapter II of chapter
417 is amended by adding at the end the following:
‘‘§ 41745. Community and regional choice program
‘‘(a) ESTABLISHMENT.—The Secretary of Transpor-
tation shall establish an alternate essential air service pilot
program in accordance with the requirements of this sec-
tion.
‘‘(b) COMPENSATION TO ELIGIBLE PLACES.—In car-
rying out the program, the Secretary, instead of paying
compensation to an air carrier to provide essential air
service to an eligible place, may pay compensation directly
to a unit of local government having jurisdiction over the
eligible place or a State within the boundaries of which
the eligible place is located.
‘‘(c) USE OF COMPENSATION.—A unit of local gov-
ernment or State receiving compensation for an eligible
place under the program shall use the compensation for
any of the following purposes:
‘‘(1) To provide assistance to an air carrier to
provide scheduled air service to and from the eligible
place, without being subject to the requirements of
41732(b).
‘‘(2) To provide assistance to an air carrier to
provide on-demand air taxi service to and from the
eligible place.
‘‘(3) To provide assistance to a person to pro-
vide scheduled or on-demand surface transportation
to and from the eligible place and an airport in an-
other place.
‘‘(4) In combination with other units of local
government in the same region, to provide transpor-
tation services to and from all the eligible places in
that region at an airport or other transportation
center that can serve all the eligible places in that
region.
‘‘(5) To purchase aircraft, or a fractional share
in aircraft, to provide transportation to and from the
eligible place.
‘‘(6) To pay for other transportation or related
services that the Secretary may permit.
‘‘(d) FRACTIONALLY OWNED AIRCRAFT.—Notwith-
standing any other provision of law, only those operating
rules that relate to an aircraft that is fractionally owned
apply when an aircraft described in subsection (c)(5) is
used to provide transportation described in subsection
(c)(5).
‘‘(e) APPLICATIONS.—
‘‘(1) IN GENERAL.—A unit of local government
or State seeking to participate in the program for an
eligible place shall submit to the Secretary an appli-
cation in such form and containing such information
as the Secretary may require.
‘‘(2) REQUIRED
INFORMATION.—At a min-
imum, the application shall include—
‘‘(A) a statement of the amount of com-
pensation required; and
‘‘(B) a description of how the compensa-
tion will be used.
‘‘(f) PARTICIPATION REQUIREMENTS.—An eligible
place for which compensation is received under the pro-
gram in a fiscal year shall not be eligible to receive in
that fiscal year the essential air service that it would oth-
erwise be entitled to under this subchapter.
‘‘(g) SUBSEQUENT PARTICIPATION.—A unit of local
government participating in the program under this sec-
tion in a fiscal year shall not be prohibited from partici-
pating in the basic essential air service program under this
chapter in a subsequent fiscal year if such unit is other-
wise eligible to participate in such program.
‘‘(h) FUNDING.—Amounts appropriated or otherwise
made available to carry out the essential air service pro-
gram under this subchapter shall be available to carry out
this section.’’.
(2) CONFORMING AMENDMENT.—The analysis
for chapter 417 is amended by inserting after the
item relating to section 41744 the following:
‘‘41745. Community and regional choice program.’’.
(h) MEASUREMENT
OF HIGHWAY MILEAGE
FOR
PURPOSES OF DETERMINING ELIGIBILITY FOR ESSEN-
TIAL AIR SERVICE SUBSIDIES.—
(1) DETERMINATION
OF
ELIGIBILITY.—Sub-
chapter II of Chapter 417 of title 49, United States
Code, (as amended by subsection (f) of this bill) is
further amended by adding at the end the following
new section:
‘‘§ 41746. Distance requirement applicable to eligi-
bility for essential air service subsidies
‘‘(a) IN GENERAL.—The Secretary shall not provide
assistance under this subchapter with respect to a place
in the 48 contiguous States that—
‘‘(1) is less than 70 highway miles from the
nearest hub airport; or
‘‘(2) requires a rate of subsidy per passenger in
excess of $200, unless such place is greater than
210 highway miles from the nearest hub airport.
‘‘(b) DETERMINATION OF MILEAGE.—For purposes
of this section, the highway mileage between a place and
the nearest hub airport is the highway mileage of the most
commonly used route between the place and the hub air-
port. In identifying such route, the Secretary shall—
‘‘(1) promulgate by regulation a standard for
calculating the mileage between an eligible place and
a hub airport; and
‘‘(2) identify the most commonly used route for
a community by—
‘‘(A) consulting with the Governor of a
State or the Governor’s designee; and
‘‘(B) considering the certification of the
Governor of a State or the Governor’s designee
as to the most commonly used route.’’.
(2) CONFORMING AMENDMENT.—The analysis
for subchapter II of chapter 417 of title 49, United
States Code, (as amended by subsection (f) of this
bill) is further amended by inserting after the item
relating to section 41745 the following new item:
‘‘41746. Distance requirement applicable to eligibility for essential air serv-
ice subsidies.’’.
(i) REPEAL.—The following provisions of law are re-
pealed:
(1) Section 332 of the Department of Trans-
portation and Related Agencies Appropriations Act,
2000 (49 U.S.C. 41731 note).
(2) Section 205 of the Wendell H. Ford Avia-
tion Investment and Reform Act for the 21st Cen-
tury (49 U.S.C. 41731 note).
(3) Section 334 of the Department of Trans-
portation and Related Agencies Appropriations Act,
1999 (section 101(g) of division A of the Omnibus
Consolidated and Emergency Supplemental Appro-
priations Act, 1999) (Public Law 105–277; 112
Stat. 2681–471).
(j) SECRETARIAL REVIEW.—
(1) REQUEST FOR REVIEW.—Any community
with respect to which the Secretary has, between
September 30, 1993, and the date of the enactment
of this Act, eliminated subsidies or terminated sub-
sidy eligibility under section 332 of the Department
of Transportation and Related Agencies Appropria-
tions Act, 2000 (49 U.S.C. 41731 note), Section
205 of the Wendell H. Ford Aviation Investment
and Reform Act for the 21st Century (49 U.S.C.
41731 note), or any prior law of similar effect, may
request the Secretary to review such action.
(2) ELIGIBILITY
DETERMINATION.—Not later
than 60 days after receiving a request under sub-
section (i), the Secretary shall—
(A) determine whether the community
would have been subject to such elimination of
subsidies or termination of eligibility under the
distance requirement enacted by the amend-
ment made by subsection (g) of this bill to sub-
chapter II of chapter 417 of title 49, United
States Code; and
(B) issue a final order with respect to the
eligibility of such community for essential air
service subsidies under subchapter II of chapter
417 of title 49, United States Code, as amend-
ed by this Act.
SEC. 416. TYPE CERTIFICATES.
(a) AGREEMENTS TO PERMIT USE OF CERTIFICATES
BY OTHER PERSONS.—Section 44704(a) is amended by
adding at the end the following:
‘‘(3) If the holder of a type certificate agrees to per-
mit another person to use the certificate to manufacture
a new aircraft, aircraft engine, propeller, or appliance, the
holder shall provide the other person with written evi-
dence, in a form acceptable to the Administrator, of that
agreement. A person may manufacture a new aircraft, air-
craft engine, propeller, or appliance based on a type cer-
tificate only if the person is the holder of the type certifi-
cate or has permission from the holder.’’.
(b) CERTIFICATION OF PRODUCTS MANUFACTURED
IN FOREIGN NATIONS.—Section 44704 is further amend-
ed by adding at the end the following:
‘‘(e) CERTIFICATION OF PRODUCTS MANUFACTURED
IN FOREIGN NATIONS.—In order to ensure safety, the Ad-
ministrator shall spend at least the same amount of time
and perform a no-less-thorough review in certifying, or
validating the certification of, an aircraft, aircraft engine,
propeller, or appliance manufactured in a foreign nation
as the regulatory authorities of that nation employ when
the authorities certify, or validate the certification of, an
aircraft, aircraft engine, propeller, or appliance manufac-
tured in the United States.’’.
SEC. 417. DESIGN ORGANIZATION CERTIFICATES.
(a) GENERAL
AUTHORITY
TO
ISSUE
CERTIFI-
CATES.—Effective on the last day of the 7-year period be-
ginning on the date of enactment of this Act, section
44702(a) is amended by inserting ‘‘design organization
certificates,’’ after ‘‘airman certificates,’’.
(b) DESIGN ORGANIZATION CERTIFICATES.—
(1) PLAN.—Not later than 4 years after the
date of enactment of this Act, the Administrator of
the Federal Aviation Administration shall transmit
to the Committee on Transportation and Infrastruc-
ture of the House of Representatives and the Com-
mittee on Commerce, Science, and Transportation of
the Senate a plan for the development and oversight
of a system for certification of design organizations
to certify compliance with the requirements and min-
imum standards prescribed under section 44701(a)
of title 49, United States Code, for the type certifi-
cation of aircraft, aircraft engines, propellers, or ap-
pliances.
(2) 
ISSUANCE
OF
CERTIFICATES.—Section
44704 is further amended by adding at the end the
following:
‘‘(f) DESIGN ORGANIZATION CERTIFICATES.—
‘‘(1) ISSUANCE.—Beginning 7 years after the
date of enactment of this subsection, the Adminis-
trator may issue a design organization certificate to
a design organization to authorize the organization
to certify compliance with the requirements and min-
imum standards prescribed under section 44701(a)
for the type certification of aircraft, aircraft engines,
propellers, or appliances.
‘‘(2) APPLICATIONS.—On receiving an applica-
tion for a design organization certificate, the Admin-
istrator shall examine and rate the design organiza-
tion submitting the application, in accordance with
regulations to be prescribed by the Administrator, to
determine whether the design organization has ade-
quate engineering, design, and testing capabilities,
standards, and safeguards to ensure that the prod-
uct being certificated is properly designed and man-
ufactured, performs properly, and meets the regula-
tions and minimum standards prescribed under sec-
tion 44701(a).
‘‘(3) ISSUANCE OF TYPE CERTIFICATES BASED
ON DESIGN ORGANIZATION CERTIFICATION.—On re-
ceiving an application for a type certificate under
subsection (a) that is accompanied by a certification
of compliance by a design organization certificated
under this subsection, instead of conducting an inde-
pendent investigation under subsection (a), the Ad-
ministrator may issue the type certificate based on
the certification of compliance.
‘‘(4) PUBLIC SAFETY.—The Administrator shall
include in a design organization certificate issued
under this subsection terms required in the interest
of safety.’’.
(c) REINSPECTION AND REEXAMINATION.—Section
44709(a) is amended by inserting ‘‘design organization,
production certificate holder,’’ after ‘‘appliance,’’.
(d) PROHIBITIONS.—Section 44711(a)(7) is amended
by striking ‘‘agency’’ and inserting ‘‘agency, design orga-
nization certificate, ’’.
(e) CONFORMING AMENDMENTS.—
(1) SECTION
HEADING.—Section 44704 is
amended by striking the section designation and
heading and inserting the following:
‘‘§ 44704. Type certificates, production certificates,
airworthiness certificates, and design or-
ganization certificates’’.
(2) CHAPTER
ANALYSIS.—The analysis for
chapter 447 is amended by striking the item relating
to section 44704 and inserting the following:
‘‘44704. Type certificates, production certificates, airworthiness certificates, and
design organization certificates.’’.
SEC. 
418. 
COUNTERFEIT 
OR 
FRAUDULENTLY 
REP-
RESENTED PARTS VIOLATIONS.
Section 44726(a)(1) is amended—
(1) by striking ‘‘or’’ at the end of subparagraph
(A);
(2) by redesignating subparagraph (B) as sub-
paragraph (C);
(3) by inserting after subparagraph (A) the fol-
lowing:
‘‘(B) whose certificate is revoked under
subsection (b); or’’; and
(4) in subparagraph (C) (as redesignated by
paragraph (2) of this section) by striking ‘‘convicted
of such a violation.’’ and inserting ‘‘described in sub-
paragraph (A) or (B).’’.
SEC. 419. RUNWAY SAFETY STANDARDS.
(a) IN GENERAL.—Chapter 447 is amended by add-
ing at the end the following:
‘‘§ 44727. Runway safety areas
‘‘An airport owner or operator shall not be required
to reduce the length of a runway or declare the length
of a runway to be less than the actual pavement length
in order to meet standards of the Federal Aviation Admin-
istration applicable to runway safety areas.’’.
(b) CONFORMING AMENDMENT.—The analysis for
chapter 447 is amended by adding at the end the fol-
lowing:
‘‘44727. Runway safety areas.’’.
SEC. 420. AVAILABILITY OF MAINTENANCE INFORMATION.
(a) IN GENERAL.—Chapter 447 is further amended
by adding at the end the following:
‘‘§ 44728. Availability of maintenance information
‘‘(a) IN GENERAL.—The Administrator of the Fed-
eral Aviation Administration shall continue in effect the
requirement of section 21.50(b) of title 14, Code of Fed-
eral Regulations, that the holder of a design approval—
‘‘(1) shall prepare and furnish at least one set
of complete instructions for continued airworthiness
as prescribed in such section to the owner of each
type of aircraft, aircraft engine, or propeller upon its
delivery or upon the issuance of the first standard
airworthiness certificate for the affected aircraft,
whichever occurs later; and
‘‘(2) thereafter shall make the instructions, and
any changes thereto, available to any other person
required by parts 1 through 199 of title 14, Code of
Federal Regulations, to comply with any of the
terms of the instructions.
‘‘(b) DEFINITIONS.—In this section, the following
definitions apply:
‘‘(1) MAKE AVAILABLE.—The term ‘make avail-
able’ means providing at a fair and reasonable price.
Such price may include recurring and non-recurring
costs associated with post-certification development,
preparation, and distribution. Such price may not
include the initial product development costs related
to the issuance of a design approval.
‘‘(2) DESIGN APPROVAL.—The term ‘design ap-
proval’ means a type certificate, supplemental type
certificate, amended type certificate, parts manufac-
turer approval, technical standard order authoriza-
tion, and any other action as determined by the Ad-
ministrator pursuant to subsection (c)(2).
‘‘(3) INSTRUCTIONS
FOR
CONTINUED
AIR-
WORTHINESS.—The term ‘instructions for continued
airworthiness’ means any information (and any
changes to such information) considered essential to
continued airworthiness that sets forth instructions
and requirements for performing maintenance and
alteration.
‘‘(c) RULEMAKING.—The Administrator shall con-
duct a rulemaking proceeding for the following purposes:
‘‘(1) To determine the meaning of the phrase
‘essential to continued airworthiness’ of the applica-
ble aircraft, aircraft engine, and propeller as that
term is used in parts 23 through 35 of title 14,
Code of Federal Regulations.
‘‘(2) To determine if a design approval should
include, in addition to those approvals specified in
subsection (b)(2), any other activity in which per-
sons are required to have technical data approved by
the Administrator.
‘‘(3) To determine if design approval holders
for aircraft, aircraft engines, and propellers that are
in production on the date of enactment of this sec-
tion and for which application for a type certificate
or supplemental type certificate was made before
January 29, 1981, should be required to make in-
structions for continued airworthiness or mainte-
nance manuals available (including any changes
thereto) to any person required by Federal Aviation
Administration rules to comply with any of the
terms of the instructions or manuals.
‘‘(4) To revise its rules to reflect the changes
made by this section.
‘‘(d) DEADLINES FOR RULEMAKING.—
‘‘(1) NOTICE
OF
PROPOSED
RULEMAKING.—
The Administrator shall issue a notice of proposed
rulemaking to carry out subsection (c) not later than
one year after the date of enactment of this section.
‘‘(2) FINAL
RULE.—The Administrator shall
issue a final rule with respect to subsection (c) not
later than one year after the final date for the sub-
mission of comments with respect to the proposed
rulemaking.
‘‘(e) ENFORCEMENT OF CURRENT REGULATION.—
The Administrator shall review design approval holders
that were required to produce instructions for continued
airworthiness under section 21.50(b) of title 14, Code of
Federal Regulations. If the Administrator determines that
a design approval holder has not produced such instruc-
tions, the Administrator shall require the design approval
holder to prepare such instructions and make them avail-
able as required by this section not later than 1 year after
the design approval holder is notified by the Administrator
of the determination.
‘‘(f) LIMITATION ON STATUTORY CONSTRUCTION.—
Nothing is this section shall be construed as requiring the
holder of a design approval to make available proprietary
information unless it is deemed essential to continued air-
worthiness.’’.
(b) CONFORMING AMENDMENT.—The analysis for
chapter 447 is further amended by adding at the end the
following:
‘‘44728. Availability of maintenance information.’’.
SEC. 421. CERTIFICATE ACTIONS IN RESPONSE TO A SECU-
RITY THREAT.
(a) IN GENERAL.—Chapter 461 is amended by add-
ing at the end the following:
‘‘§ 46111. Certificate actions in response to a security
threat
‘‘(a) ORDERS.—The Administrator of Federal Avia-
tion Administration shall issue an order amending, modi-
fying, suspending, or revoking any part of a certificate
issued under this title if the Administrator is notified by
the Under Secretary for Border and Transportation Secu-
rity of the Department of Homeland Security that the
holder of the certificate poses, or is suspected of posing,
a risk of air piracy or terrorism or a threat to airline or
passenger safety. If requested by the Under Secretary, the
order shall be effective immediately.
‘‘(b) HEARINGS FOR CITIZENS.—An individual who
is a citizen of the United States who is adversely affected
by an order of the Administrator under subsection (a) is
entitled to a hearing on the record.
‘‘(c) HEARINGS.—When conducting a hearing under
this section, the administrative law judge shall not be
bound by findings of fact or interpretations of laws and
regulations of the Administrator or the Under Secretary.
‘‘(d) APPEALS.—An appeal from a decision of an ad-
ministrative law judge as the result of a hearing under
subsection (b) shall be made to the Transportation Secu-
rity Oversight Board established by section 115. The
Board shall establish a panel to review the decision. The
members of this panel (1) shall not be employees of the
Transportation Security Administration, (2) shall have the
level of security clearance needed to review the determina-
tion made under this section, and (3) shall be given access
to all relevant documents that support that determination.
The panel may affirm, modify, or reverse the decision.
‘‘(e) REVIEW.—A person substantially affected by an
action of a panel under subsection (d), or the Under Sec-
retary when the Under Secretary decides that the action
of the panel under this section will have a significant ad-
verse impact on carrying out this part, may obtain review
of the order under section 46110. The Under Secretary
and the Administrator shall be made a party to the review
proceedings. Findings of fact of the panel are conclusive
if supported by substantial evidence.
‘‘(f) EXPLANATION OF DECISIONS.—An individual
who commences an appeal under this section shall receive
a written explanation of the basis for the determination
or decision and all relevant documents that support that
determination to the maximum extent that the national
security interests of the United States and other applica-
ble laws permit.
‘‘(g) CLASSIFIED EVIDENCE.—
‘‘(1) IN GENERAL.—The Under Secretary, in
consultation with the Administrator, shall issue reg-
ulations to establish procedures by which the Under
Secretary, as part of a hearing conducting under
this section, may substitute an unclassified summary
of classified evidence upon the approval of the ad-
ministrative law judge.
‘‘(2) APPROVAL
AND
DISAPPROVAL
OF
SUM-
MARIES.—Under the procedures, an administrative
law judge shall—
‘‘(A) approve a summary if the judge finds
that it is sufficient to enable the certificate
holder to appeal an order issued under sub-
section (a); or
‘‘(B) disapprove a summary if the judge
finds that it is not sufficient to enable the cer-
tificate holder to appeal such an order.
‘‘(3) MODIFICATIONS.—If an administrative law
judge disapproves a summary under paragraph
(2)(B), the judge shall direct the Under Secretary to
modify the summary and resubmit the summary for
approval.
‘‘(4) INSUFFICIENT MODIFICATIONS.—If an ad-
ministrative law judge is unable to approve a modi-
fied summary, the order issued under subsection (a)
that is the subject of the hearing shall be set aside
unless the judge finds that such a result—
‘‘(A) would likely cause serious and irrep-
arable harm to the national security; or
100
‘‘(B) would likely cause death or serious
bodily injury to any person.
‘‘(5) SPECIAL PROCEDURES.—If an administra-
tive law judge makes a finding under subparagraph
(A) or (B) of paragraph (4), the hearing shall pro-
ceed without an unclassified summary provided to
the certificate holder. In such a case, subject to pro-
cedures established by regulation by the Under Sec-
retary in consultation with the Administrator, the
administrative law judge shall appoint a special at-
torney to assist the accused by—
‘‘(A) reviewing in camera the classified evi-
dence; and
‘‘(B) challenging, through an in camera
proceeding, the veracity of the evidence con-
tained in the classified information.’’.
(b) CONFORMING AMENDMENT.—The analysis for
chapter 461 is amended by adding at the end the fol-
lowing:
‘‘46111. Certificate actions in response to a security threat.’’.
(c) REVIEW.—The first sentence of section 46110(a)
is amended by striking ‘‘part’’ and inserting ‘‘subtitle’’.
SEC. 422. FLIGHT ATTENDANT CERTIFICATION.
(a) IN GENERAL.—Chapter 447 is further amended
by adding at the end the following:
101
‘‘§ 44729. Flight attendant certification
‘‘(a) CERTIFICATE REQUIRED.—
‘‘(1) IN GENERAL.—No person may serve as a
flight attendant aboard an aircraft of an air carrier
unless that person holds a certificate of dem-
onstrated proficiency from the Administrator of the
Federal Aviation Administration. Upon the request
of the Administrator or an authorized representative
of the National Transportation Safety Board or an-
other Federal agency, a person who holds such a
certificate shall present the certificate for inspection
within a reasonable period of time after the date of
the request.
‘‘(2) SPECIAL RULE FOR CURRENT FLIGHT AT-
TENDANTS.—An individual serving as a flight at-
tendant on the effective date of this section may
continue to serve aboard an aircraft as a flight at-
tendant until completion by that individual of the re-
quired recurrent or requalification training and sub-
sequent certification under this section.
‘‘(3) TREATMENT
OF
FLIGHT
ATTENDANT
AFTER NOTIFICATION.—On the date that the Ad-
ministrator is notified by an air carrier that an indi-
vidual has the demonstrated proficiency to be a
flight attendant, the individual shall be treated for
102
purposes of this section as holding a certificate
issued under the section.
‘‘(b) ISSUANCE
OF CERTIFICATE.—The Adminis-
trator shall issue a certificate of demonstrated proficiency
under this section to an individual after the Administrator
is notified by the air carrier that the individual has suc-
cessfully completed all the training requirements for flight
attendants approved by the Administrator.
‘‘(c) DESIGNATION OF PERSON TO DETERMINE SUC-
CESSFUL COMPLETION
OF TRAINING.—In accordance
with part 183 of chapter 14, Code of Federal Regulation,
the director of operations of an air carrier is designated
to determine that an individual has successfully completed
the training requirements approved by the Administrator
for such individual to serve as a flight attendant.
‘‘(d) 
SPECIFICATIONS
RELATING
TO
CERTIFI-
CATES.—Each certificate issued under this section shall—
‘‘(1) be numbered and recorded by the Adminis-
trator;
‘‘(2) contain the name, address, and description
of the individual to whom the certificate is issued;
‘‘(3) contain the name of the employer that em-
ploys or will employ the certificate holder on the
date that the certificate is issued;
103
‘‘(4) is similar in size and appearance to certifi-
cates issued to airmen;
‘‘(5) contain the airplane group for which the
certificate is issued; and
‘‘(6) be issued not later than 30 days after the
Administrator receives notification from the air car-
rier of demonstrated proficiency and, in the case of
an individual serving as flight attendant on the ef-
fective date of this section, not later than 1 year
after such effective date.
‘‘(e) APPROVAL OF TRAINING PROGRAMS.—Air car-
rier flight attendant training programs shall be subject to
approval by the Administrator. All flight attendant train-
ing programs approved by the Administrator in the 1-year
period ending on the date of enactment of this section
shall be treated as providing a demonstrated proficiency
for purposes of meeting the certification requirements of
this section.
‘‘(f) FLIGHT ATTENDANT DEFINED.—In this section,
the term ‘flight attendant’ means an individual working
as a flight attendant in the cabin of an aircraft that has
20 or more seats and is being used by an air carrier to
provide air transportation.’’.
104
(b) CONFORMING AMENDMENT.—The analysis for
chapter 447 is further amended by adding at the end the
following:
‘‘44729. Flight attendant certification.’’.
(c) EFFECTIVE DATE.—The amendments made by
subsections (a) and (b) shall take effect on the 365th day
following the date of enactment of this Act.
SEC. 423. CIVIL PENALTY FOR CLOSURE OF AN AIRPORT
WITHOUT PROVIDING SUFFICIENT NOTICE.
(a) IN GENERAL.—Chapter 463 is amended by add-
ing at the end the following:
‘‘§ 46319. Closure of an airport without providing suf-
ficient notice
‘‘(a) PROHIBITION.—A public agency (as defined in
section 47102) may not close an airport listed in the na-
tional plan of integrated airport systems under section
47103 without providing written notice to the Adminis-
trator of the Federal Aviation Administration at least 30
days before the date of the closure.
‘‘(b) PUBLICATION OF NOTICE.—The Administrator
shall publish each notice received under subsection (a) in
the Federal Register.
‘‘(c) CIVIL PENALTY.—A public agency violating sub-
section (a) shall be liable for a civil penalty of $10,000
for each day that the airport remains closed without hav-
ing given the notice required by this section.’’.
105
(b) CONFORMING AMENDMENT.—The analysis for
chapter 463 is amended by adding at the end the fol-
lowing:
‘‘46319. Closure of an airport without providing sufficient notice.’’.
SEC. 424. NOISE EXPOSURE MAPS.
Section 47503 is amended—
(1) in subsection (a) by striking ‘‘1985,’’ and
inserting ‘‘a forecast period that is at least 5 years
in the future’’; and
(2) by striking subsection (b) and inserting the
following:
‘‘(b) REVISED MAPS.—If, in an area surrounding an
airport, a change in the operation of the airport would
establish a substantial new noncompatible use, or would
significantly reduce noise over existing noncompatible
uses, that is not reflected in either the existing conditions
map or forecast map currently on file with the Federal
Aviation Administration, the airport operator shall submit
a revised noise exposure map to the Secretary showing the
new noncompatible use or noise reduction.’’.
SEC. 425. AMENDMENT OF GENERAL FEE SCHEDULE PRO-
VISION.
The amendment made by section 119(d) of the Avia-
tion and Transportation Security Act (115 Stat. 629)
shall not be affected by the savings provisions contained
in section 141 of that Act (115 Stat. 643).
106
SEC. 426. IMPROVEMENT OF CURRICULUM STANDARDS
FOR AVIATION MAINTENANCE TECHNICIANS.
(a) IN GENERAL.—The Administrator of the Federal
Aviation Administration shall ensure that the training
standards for airframe and powerplant mechanics under
part 65 of title 14, Code of Federal Regulations, are up-
dated and revised in accordance with this section. The Ad-
ministrator may update and revise the training standards
through the initiation of a formal rulemaking or by issuing
an advisory circular or other agency guidance.
(b) ELEMENTS FOR CONSIDERATION.—The updated
and revised standards required under subsection (a) shall
include those curriculum adjustments that are necessary
to more accurately reflect current technology and mainte-
nance practices.
(c) MINIMUM TRAINING HOURS.—In making adjust-
ments to the maintenance curriculum requirements pursu-
ant to this section, the current requirement of 1900 min-
imum training hours shall be maintained.
(d) CERTIFICATION.—Any adjustment or modifica-
tion of current curriculum standards made pursuant to
this section shall be reflected in the certification examina-
tions of airframe and powerplant mechanics.
(e) COMPLETION.—The revised and updated training
standards required by subsection (a) shall be completed
107
not later than 12 months after the date of enactment of
this Act.
(f) PERIODIC REVIEWS AND UPDATES.—The Admin-
istrator shall review the content of the curriculum stand-
ards for training airframe and powerplant mechanics re-
ferred to in subsection (a) every 3 years after completion
of the revised and updated training standards required
under subsection (a) as necessary to reflect current tech-
nology and maintenance practices.
SEC. 427. TASK FORCE ON FUTURE OF AIR TRANSPOR-
TATION SYSTEM.
(a) IN GENERAL.—The President shall establish a
task force to work with the Next Generation Air Transpor-
tation System Joint Program Office authorized under sec-
tion 106(k)(3).
(b) MEMBERSHIP.—The task force shall be composed
of representatives, appointed by the President, from air
carriers, general aviation, pilots, and air traffic controllers
and the following government organizations:
(1) The Federal Aviation Administration.
(2) The National Aeronautics and Space Ad-
ministration.
(3) The Department of Defense.
(4) The Department of Homeland Security.
108
(5) The National Oceanic and Atmospheric Ad-
ministration.
(6) Other government organizations designated
by the President.
(c) FUNCTION.—The function of the task force shall
be to develop an integrated plan to transform the Nation’s
air traffic control system and air transportation system
to meet its future needs.
(d) PLAN.—Not later than 1 year after the date of
establishment of the task force, the task force shall trans-
mit to the President and Congress a plan outlining the
overall strategy, schedule, and resources needed to develop
and deploy the Nation’s next generation air traffic control
system and air transportation system.
SEC. 428. AIR QUALITY IN AIRCRAFT CABINS.
(a) IN GENERAL.—The Administrator of the Federal
Aviation Administration shall undertake the studies and
analysis called for in the report of the National Research
Council entitled ‘‘The Airliner Cabin Environment and the
Health of Passengers and Crew’’.
(b) REQUIRED ACTIVITIES.—In carrying out this sec-
tion, the Administrator, at a minimum, shall—
(1) conduct surveillance to monitor ozone in the
cabin on a representative number of flights and air-
109
craft to determine compliance with existing Federal
Aviation Regulations for ozone;
(2) collect pesticide exposure data to determine
exposures of passengers and crew; and
(3) analyze samples of residue from aircraft
ventilation ducts and filters after air quality inci-
dents to identify the allergens, diseases, and other
contaminants to which passengers and crew were ex-
posed.
(c) REPORT.—Not later than 30 months after the
date of enactment of this Act, the Administrator shall
transmit to Congress a report on the findings of the Ad-
ministrator under this section.
SEC. 
429. 
RECOMMENDATIONS 
CONCERNING 
TRAVEL
AGENTS.
(a) REPORT.—Not later than 6 months after the date
of enactment of this Act, the Secretary of Transportation
shall transmit to Congress a report on any actions that
should be taken with respect to recommendations made
by the National Commission to Ensure Consumer Infor-
mation and Choice in the Airline Industry on—
(1) the travel agent arbiter program; and
(2) the special box on tickets for agents to in-
clude their service fee charges.
110
(b) CONSULTATION.—In preparing this report, the
Secretary shall consult with representatives from the air-
line and travel agent industry.
SEC. 430. TASK FORCE ON ENHANCED TRANSFER OF APPLI-
CATIONS OF TECHNOLOGY FOR MILITARY
AIRCRAFT TO CIVILIAN AIRCRAFT.
(a) IN GENERAL.—The President shall establish a
task force to look for better methods for ensuring that
technology developed for military aircraft is more quickly
and easily transferred to applications for improving and
modernizing the fleet of civilian aircraft.
(b) MEMBERSHIP.—The task force shall be composed
of the Secretary of Transportation who shall be the chair
of the task force and representatives, appointed by the
President, from the following:
(1) The Department of Transportation.
(2) The Federal Aviation Administration.
(3) The Department of Defense.
(4) The National Aeronautics and Space Ad-
ministration.
(5) The aircraft manufacturing industry.
(6) Such other organizations as the President
may designate.
(c) REPORT.—Not later than 1 year after the date
of enactment of this Act, the task force shall report to
111
Congress on the methods looked at by the task force for
ensuring the transfer of applications described in sub-
section (a).
SEC. 431. REIMBURSEMENT FOR LOSSES INCURRED BY
GENERAL AVIATION ENTITIES.
(a) IN GENERAL.—The Secretary of Transportation
may make grants to reimburse the following general avia-
tion entities for the security costs incurred and revenue
foregone as a result of the restrictions imposed by the
Federal Government following the terrorist attacks on the
United States that occurred on September 11, 2001, or
the military action to free the people of Iraq that com-
menced in March 2003:
(1) General aviation entities that operate at
Ronald Reagan Washington National Airport.
(2) Airports that are located within 15 miles of
Ronald Reagan Washington National Airport and
were operating under security restrictions on the
date of enactment of this Act and general aviation
entities operating at those airports.
(3) General aviation entities that were affected
by Federal Aviation Administration Notices to Air-
men FDC 2/0199 and 3/1862 and section 352 of the
Department of Transportation and Related Agencies
112
Appropriations Act, 2003 (Public Law 108–7, divi-
sion I).
(4) General aviation entities affected by imple-
mentation of section 44939 of title 49, United
States Code.
(5) Any other general aviation entity that is
prevented from doing business or operating by an
action of the Federal Government prohibiting access
to airspace by that entity.
(b) DOCUMENTATION.—Reimbursement under this
section shall be made in accordance with sworn financial
statements or other appropriate data submitted by each
general aviation entity demonstrating the costs incurred
and revenue foregone to the satisfaction of the Secretary.
(c) GENERAL AVIATION ENTITY DEFINED.—In this
section, the term ‘‘general aviation entity’’ means any per-
son (other than a scheduled air carrier or foreign air car-
rier, as such terms are defined in section 40102 of title
49, United States Code) that—
(1) operates nonmilitary aircraft under part 91
of title 14, Code of Federal Regulations, for the pur-
pose of conducting its primary business;
(2) manufactures nonmilitary aircraft with a
maximum seating capacity of fewer than 20 pas-
sengers or aircraft parts to be used in such aircraft;
113
(3) provides services necessary for nonmilitary
operations under such part 91; or
(4) operates an airport, other than a primary
airport (as such terms are defined in such section
40102), that—
(A) is listed in the national plan of inte-
grated airport systems developed by the Federal
Aviation Administration under section 47103 of
such title; or
(B) is normally open to the public, is lo-
cated within the confines of enhanced class B
airspace (as defined by the Federal Aviation
Administration in Notice to Airmen FDC 1/
0618), and was closed as a result of an order
issued by the Federal Aviation Administration
in the period beginning September 11, 2001,
and ending January 1, 2002, and remained
closed as a result of that order on January 1,
2002.
Such term includes fixed based operators, flight schools,
manufacturers of general aviation aircraft and products,
persons engaged in nonscheduled aviation enterprises, and
general aviation independent contractors.
(d) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to carry out this section
114
$100,000,000. Such sums shall remain available until ex-
pended.
SEC. 432. IMPASSE PROCEDURES FOR NATIONAL ASSOCIA-
TION OF AIR TRAFFIC SPECIALISTS.
(a) FAILURE OF CURRENT NEGOTIATIONS.—If, with-
in 30 days after the date of enactment of this Act, the
Federal Aviation Administration and the exclusive bar-
gaining representative of the National Association of Air
Traffic Specialists have failed to achieve agreement
through a mediation process of the Federal Mediation and
Conciliation Service, the current labor negotiation shall be
treated for purposes of this section to have failed.
(b) SUBMISSION
TO IMPASSE PANEL.—Not later
than 30 days after the negotiation has failed under sub-
section (a), the parties to the negotiation shall submit un-
resolved issues to the Federal Service Impasses Panel de-
scribed in section 7119(c) of title 5, United States Code,
for final and binding resolution.
(c) ASSISTANCE.—The Panel shall render assistance
to the parties in resolving their dispute in accordance with
section 7119 of title 5, United States Code, and parts
2470 and 2471 of title 5, Code of Federal Regulations.
(d) DETERMINATION.—The Panel shall make a just
and reasonable determination of the matters in dispute.
In arriving at such determination, the Panel shall specify
115
the basis for its findings, taking into consideration such
relevant factors as are normally and customarily consid-
ered in the determination of wages or impasse Panel pro-
ceedings. The Panel shall also take into consideration the
financial ability of the Administration to pay.
(e) EFFECT OF PANEL DETERMINATION.—The de-
termination of the Panel shall be final and binding upon
the parties for the period prescribed by the Panel or a
period otherwise agreed to by the parties.
(f) REVIEW.—The determination of the Panel shall
be subject to review in the manner prescribed in chapter
71 of title 5, United States Code.
SEC. 433. FAA INSPECTOR TRAINING.
(a) STUDY.—
(1) IN
GENERAL.—The Comptroller General
shall conduct a study of the training of the aviation
safety inspectors of the Federal Aviation Adminis-
tration (in this section referred to as ‘‘FAA inspec-
tors’’).
(2) CONTENTS.—The study shall include—
(A) an analysis of the type of training pro-
vided to FAA inspectors;
(B) actions that the Federal Aviation Ad-
ministration has undertaken to ensure that
116
FAA inspectors receive up-to-date training on
the latest technologies;
(C) the extent of FAA inspector training
provided by the aviation industry and whether
such training is provided without charge or on
a quid-pro-quo basis; and
(D) the amount of travel that is required
of FAA inspectors in receiving training.
(3) REPORT.—Not later than 1 year after the
date of enactment of this Act, the Comptroller Gen-
eral shall transmit to the Committee on Transpor-
tation and Infrastructure of the House of Represent-
atives and the Committee on Commerce, Science,
and Transportation of the Senate a report on the re-
sults of the study.
(b) SENSE OF THE HOUSE.—It is the sense of the
House of Representatives that—
(1) FAA inspectors should be encouraged to
take the most up-to-date initial and recurrent train-
ing on the latest aviation technologies;
(2) FAA inspector training should have a direct
relation to an individual’s job requirements; and
(3) if possible, a FAA inspector should be al-
lowed to take training at the location most conven-
ient for the inspector.
117
(c) WORKLOAD OF INSPECTORS.—
(1) 
STUDY
BY
NATIONAL
ACADEMY
OF
SCIENCES.—Not later than 90 days after the date of
enactment of this Act, the Administrator of the Fed-
eral Aviation Administration shall make appropriate
arrangements for the National Academy of Sciences
to conduct a study of the assumptions and methods
used by the Federal Aviation Administration to esti-
mate staffing standards for FAA inspectors to en-
sure proper oversight over the aviation industry, in-
cluding the designee program.
(2) CONTENTS.—The study shall include the
following:
(A) A suggested method of modifying FAA
inspectors staffing models for application to
current local conditions or applying some other
approach to developing an objective staffing
standard.
(B) The approximate cost and length of
time for developing such models.
(3) REPORT.—Not later than 12 months after
the initiation of the arrangements under subsection
(a), the National Academy of Sciences shall transmit
to Congress a report on the results of the study.
118
SEC. 434. PROHIBITION ON AIR TRAFFIC CONTROL PRIVAT-
IZATION.
(a) IN GENERAL.—The Secretary of Transportation
may not authorize the transfer of the air traffic separation
and control functions operated by the Federal Aviation
Administration on the date of enactment of this Act to
a private entity or to a public entity other than the United
States Government.
(b) LIMITATION.—Subsection (a) shall not apply to
a Federal Aviation Administration air traffic control tower
operated under the contract tower program on the date
of enactment of this Act or to any expansion of that pro-
gram under section 47124(b)(3) or 47124(b)(4) of title
49, United States Code.
SEC. 435. AIRFARES FOR MEMBERS OF THE ARMED
FORCES.
(a) FINDINGS.—Congress finds that—
(1) the Armed Forces is comprised of approxi-
mately 1,400,000 members who are stationed on ac-
tive duty at more than 6,000 military bases in 146
different countries;
(2) the United States is indebted to the mem-
bers of the Armed Forces, many of whom are in
grave danger due to their engagement in, or expo-
sure to, combat;
119
(3) military service, especially in the current
war against terrorism, often requires members of the
Armed Forces to be separated from their families on
short notice, for long periods of time, and under
very stressful conditions;
(4) the unique demands of military service often
preclude members of the Armed Forces from pur-
chasing discounted advance airline tickets in order
to visit their loved ones at home; and
(5) it is the patriotic duty of the people of the
United States to support the members of the Armed
Forces who are defending the Nation’s interests
around the world at great personal sacrifice.
(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that each United States air carrier should—
(1) establish for all members of the Armed
Forces on active duty reduced air fares that are
comparable to the lowest airfare for ticketed flights;
and
(2) offer flexible terms that allow members of
the Armed Forces on active duty to purchase, mod-
ify, or cancel tickets without time restrictions, fees,
and penalties.
120
SEC. 436. AIR CARRIERS REQUIRED TO HONOR TICKETS
FOR SUSPENDED AIR SERVICE.
Section 145(c) of the Aviation and Transportation
Security Act (49 U.S.C. 40101 note; 115 stat. 645) is
amended by striking ‘‘more than’’ and all that follows
through ‘‘after’’ and inserting ‘‘more than 36 months
after’’.
SEC. 437. INTERNATIONAL AIR SHOW.
(a) STUDY.—The Secretary of Transportation, in
consultation with the Secretary of Defense, shall study the
feasibility of the United States hosting a world-class inter-
national air show.
(b) REPORT.—Not later than September 30, 2004,
the Secretary shall transmit to Congress a report on the
results of the study conducted under subsection (a) to-
gether with recommendations concerning potential loca-
tions at which the air show could be held.
SEC. 438. DEFINITION OF AIR TRAFFIC CONTROLLER.
(a) CIVIL SERVICE RETIREMENT SYSTEM.—Section
8331 of title 5, United States Code, is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(27);
(2) by striking the period at the end of para-
graph (28) and inserting ‘‘; and’’; and
(3) by adding at the end the following:
121
‘‘(29) ‘air traffic controller’ or ‘controller’
means—
‘‘(A) a controller within the meaning of
section 2109(1); and
‘‘(B) a civilian employee of the Depart-
ment of Transportation or the Department of
Defense holding a supervisory, managerial, ex-
ecutive, technical, semiprofessional, or profes-
sional position for which experience as a con-
troller (within the meaning of section 2109(1))
is a prerequisite.’’.
(b) FEDERAL EMPLOYEES’ RETIREMENT SYSTEM.—
Section 8401 of title 5, United States Code, is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(33);
(2) by striking the period at the end of para-
graph (34) and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(35) ‘air traffic controller’ or ‘controller’
means—
‘‘(A) a controller within the meaning of
section 2109(1); and
‘‘(B) a civilian employee of the Depart-
ment of Transportation or the Department of
Defense holding a supervisory, managerial, ex-
122
ecutive, technical, semiprofessional, or profes-
sional position for which experience as a con-
troller (within the meaning of section 2109(1))
is a prerequisite.’’.
(c) MANDATORY SEPARATION TREATMENT NOT AF-
FECTED.—
(1) CIVIL SERVICE RETIREMENT SYSTEM.—Sec-
tion 8335(a) of title 5, United States Code, is
amended by adding at the end the following: ‘‘For
purposes of this subsection, the term ‘air traffic con-
troller’ or ‘controller’ has the meaning given to it
under section 8331(29)(A).’’.
(2) FEDERAL EMPLOYEES’ RETIREMENT SYS-
TEM.—Section 8425(a) of title 5, United States
Code, is amended by adding at the end the fol-
lowing: ‘‘For purposes of this subsection, the term
‘air traffic controller’ or ‘controller’ has the meaning
given to it under section 8401(35)(A).’’.
(d) EFFECTIVE DATE.—This section and the amend-
ments made by this section—
(1) shall take effect on the 60th day after the
date of enactment of this Act; and
(2) shall apply with respect to—
123
(A) any annuity entitlement to which is
based on an individual’s separation from service
occurring on or after that 60th day; and
(B) any service performed by any such in-
dividual before, on, or after that 60th day, sub-
ject to subsection (e).
(e) DEPOSIT REQUIRED FOR CERTAIN PRIOR SERV-
ICE TO BE CREDITABLE AS CONTROLLER SERVICE.—
(1) DEPOSIT REQUIREMENT.—For purposes of
determining eligibility for immediate retirement
under section 8412(e) of title 5, United States Code,
the amendment made by subsection (b) shall, with
respect to any service described in paragraph (2), be
disregarded unless there is deposited into the Civil
Service Retirement and Disability Fund, with re-
spect to such service, in such time, form, and man-
ner as the Office of Personnel Management by regu-
lation requires, an amount equal to the amount by
which—
(A) the deductions from pay which would
have been required for such service if the
amendments made by this section had been in
effect when such service was performed, exceeds
124
(B) the unrefunded deductions or deposits
actually made under subchapter II of chapter
84 of such title 5 with respect to such service.
The amount under the preceding sentence shall in-
clude interest, computed under paragraphs (2) and
(3) of section 8334(e) of such title 5.
(2) PRIOR
SERVICE
DESCRIBED.—This sub-
section applies with respect to any service performed
by an individual, before the 60th day following the
date of enactment of this Act, as an employee de-
scribed in section 8401(35)(B) of such title 5 (as set
forth in subsection (b)).
SEC. 439. JUSTIFICATION FOR AIR DEFENSE IDENTIFICA-
TION ZONE.
(a) IN GENERAL.—If the Administrator of the Fed-
eral Aviation Administration establishes an Air Defense
Identification Zone (in this section referred as an
‘‘ADIZ’’), the Administrator shall transmit, not later than
60 days after the date of establishing the ADIZ, to the
Committee on Transportation and Infrastructure of the
House of Representatives and the Committee on Com-
merce, Science, and Transportation of the Senate a report
containing an explanation of the need for the ADIZ. The
Administrator also shall transmit to the Committees up-
dates of the report every 60 days until the ADIZ is re-
125
scinded. The reports and updates shall be transmitted in
classified form.
(b) EXISTING ADIZ.—If an ADIZ is in effect on the
date of enactment of this Act, the Administrator shall
transmit an initial report under subsection (a) not later
than 30 days after such date of enactment.
(c) DESCRIPTION OF CHANGES TO IMPROVE OPER-
ATIONS.—A report transmitted by the Administrator
under this section shall include a description of any
changes in procedures or requirements that could improve
operational efficiency or minimize operational impacts of
the ADIZ on pilots and controllers. This portion of the
report may be transmitted in classified or unclassified
form.
(d) DEFINITION.—In this section, the terms ‘‘Air De-
fense Identification Zone’’ and ‘‘ADIZ’’ each mean a zone
established by the Administrator with respect to airspace
under 18,000 feet in approximately a 15- to 38-mile ra-
dius around Washington, District of Columbia, for which
security measures are extended beyond the existing 15-
mile no-fly zone around Washington and in which general
aviation aircraft are required to adhere to certain proce-
dures issued by the Administrator.
126
SEC. 440. INTERNATIONAL AIR TRANSPORTATION.
It is the sense of Congress that, in an effort to mod-
ernize its regulations, the Department of Transportation
should formally define ‘‘Fifth Freedom’’ and ‘‘Seventh
Freedom’’ consistently for both scheduled and charter pas-
senger and cargo traffic.
SEC. 441. REIMBURSEMENT OF AIR CARRIERS FOR CER-
TAIN SCREENING AND RELATED ACTIVITIES.
The Secretary of Transportation, subject to the avail-
ability of funds (other than amounts in the Aviation Trust
Fund) provided for this purpose, shall reimburse air car-
riers and airports for the following:
(1) All screening and related activities that the
air carriers or airports are still performing or con-
tinuing to be responsible for, including—
(A) the screening of catering supplies;
(B) checking documents at security check-
points;
(C) screening of passengers; and
(D) screening of persons with access to
aircraft.
(2) The provision of space and facilities used to
perform screening functions if such space and facili-
ties have been previously used, or were intended to
be used, for revenue-producing purposes.
127
SEC. 
442. 
GENERAL 
AVIATION 
FLIGHTS 
AT 
RONALD
REAGAN WASHINGTON NATIONAL AIRPORT.
It is the sense of Congress that Ronald Reagan
Washington National Airport should be open to general
aviation flights as soon as possible.
SEC. 443. CHARTER AIRLINES.
(a) 
IN
GENERAL.—Section 
41104(b)(1) 
is
amended—
(1) by striking ‘‘paragraph (3)’’ and inserting
‘‘paragraphs (3) and (4)’’;
(2) by inserting a comma after ‘‘regularly
scheduled charter air transportation’’; and
(3) by striking ‘‘flight unless such air transpor-
tation’’ and all that follows through the period at
the end and inserting the following: ‘‘flight, to or
from an airport that—
‘‘(A) does not have an airport operating
certificate issued under part 139 of title 14,
Code of Federal Regulations (or any subsequent
similar regulation); or
‘‘(B) has an airport operating certificate
issued under part 139 of title 14, Code of Fed-
eral Regulations (or any subsequent similar reg-
ulation) if the airport—
‘‘(i) is a reliever airport (as defined in
section 47102) and is designated as such
128
in the national plan of integrated airports
maintained under section 47103; and
‘‘(ii) is located within 20 nautical
miles (22 statute miles) of 3 or more air-
ports that annually account for at least 1
percent of the total United States pas-
senger enplanements and at least 2 of
which are operated by the sponsor of the
reliever airport.’’.
(b) WAIVERS.—Section 41104(b) is amended by add-
ing at the end the following:
‘‘(4) WAIVERS.—The Secretary may waive the
application of paragraph (1)(B) in cases in which
the Secretary determines that the public interest so
requires.’’.
SEC. 444. IMPLEMENTATION OF CHAPTER 4 NOISE STAND-
ARDS.
Not later than July 1, 2004, the Secretary of Trans-
portation shall issue regulations to implement Chapter 4
noise standards, consistent with the recommendations
adopted by the International Civil Aviation Organization.
SEC. 445. CREW TRAINING.
Section 44918 is amended to read as follows:
‘‘§ 44918. Crew training
‘‘(a) BASIC SECURITY TRAINING.—
129
‘‘(1) IN GENERAL.—Each air carrier providing
scheduled passenger air transportation shall carry
out a training program for flight and cabin crew
members to prepare the crew members for potential
threat conditions.
‘‘(2) PROGRAM
ELEMENTS.—An air carrier
training program under this subsection shall include,
at a minimum, elements that address each of the fol-
lowing:
‘‘(A) Recognizing suspicious activities and
determining the seriousness of any occurrence.
‘‘(B) Crew communication and coordina-
tion.
‘‘(C) The proper commands to give pas-
sengers and attackers.
‘‘(D) Appropriate responses to defend one-
self.
‘‘(E) Use of protective devices assigned to
crew members (to the extent such devices are
required by the Administrator of the Federal
Aviation Administration or the Under Secretary
for Border and Transportation Security of the
Department of Homeland Security).
‘‘(F) Psychology of terrorists to cope with
hijacker behavior and passenger responses.
130
‘‘(G) Situational training exercises regard-
ing various threat conditions.
‘‘(H) Flight deck procedures or aircraft
maneuvers to defend the aircraft and cabin
crew responses to such procedures and maneu-
vers.
‘‘(I) The proper conduct of a cabin search.
‘‘(J) Any other subject matter considered
appropriate by the Under Secretary.
‘‘(3) APPROVAL.—An air carrier training pro-
gram under this subsection shall be subject to ap-
proval by the Under Secretary.
‘‘(4) MINIMUM
STANDARDS.—Not later than
one year after the date of enactment of the Flight
100—Century of Aviation Reauthorization Act, the
Under Secretary shall establish minimum standards
for the training provided under this subsection and
for recurrent training.
‘‘(5) EXISTING
PROGRAMS.—Notwithstanding
paragraph (3), any training program of an air car-
rier to prepare flight and cabin crew members for
potential threat conditions that was approved by the
Administrator or the Under Secretary before the
date of enactment of the Flight 100—Century of
Aviation Reauthorization Act may continue in effect
131
until disapproved or ordered modified by the Under
Secretary.
‘‘(6) MONITORING.—The Under Secretary, in
consultation with the Administrator, shall monitor
air carrier training programs under this subsection
and periodically shall review an air carrier’s training
program to ensure that the program is adequately
preparing crew members for potential threat condi-
tions. In determining when an air carrier’s training
program should be reviewed under this paragraph,
the Under Secretary shall consider complaints from
crew members. The Under Secretary shall ensure
that employees responsible for monitoring the train-
ing programs have the necessary resources and
knowledge.
‘‘(7) UPDATES.—The Under Secretary, in con-
sultation with the Administrator, shall order air car-
riers to modify training programs under this sub-
section to reflect new or different security threats.
‘‘(b) ADVANCED SELF DEFENSE TRAINING.—
‘‘(1) IN GENERAL.—Not later than one year
after the date of enactment of the Flight 100—Cen-
tury of Aviation Reauthorization Act, the Under
Secretary shall develop and provide a voluntary
training program for flight and cabin crew members
132
of air carriers providing scheduled passenger air
transportation.
‘‘(2) PROGRAM ELEMENTS.—The training pro-
gram under this subsection shall include both class-
room and effective hands-on training in the following
elements of self-defense:
‘‘(A) Deterring a passenger who might
present a threat.
‘‘(B) Advanced control, striking, and re-
straint techniques.
‘‘(C) Training to defend oneself against
edged or contact weapons.
‘‘(D) Methods to subdue and restrain an
attacker.
‘‘(E) Use of available items aboard the air-
craft for self-defense.
‘‘(F) Appropriate and effective responses
to defend oneself, including the use of force
against an attacker.
‘‘(G) Explosive device recognition.
‘‘(H) Any other element of training that
the Under Secretary considers appropriate.
‘‘(3) PARTICIPATION NOT REQUIRED.—A crew
member shall not be required to participate in the
training program under this subsection.
133
‘‘(4) COMPENSATION.—Neither the Federal
Government nor an air carrier shall be required to
compensate a crew member for participating in the
training program under this subsection.
‘‘(5) FEES.—A crew member shall not be re-
quired to pay a fee for the training program under
this subsection.
‘‘(6) CONSULTATION.—In developing the train-
ing program under this subsection, the Under Sec-
retary shall consult with law enforcement personnel
and security experts who have expertise in self-de-
fense training, terrorism experts, representatives of
air carriers, the director of self-defense training in
the Federal Air Marshals Service, flight attendants,
labor organizations representing flight attendants,
and educational institutions offering law enforce-
ment training programs.
‘‘(7) DESIGNATION
OF
TSA
OFFICIAL.—The
Under Secretary shall designate an official in the
Transportation Security Administration to be re-
sponsible for implementing the training program
under this subsection. The official shall consult with
air carriers and labor organizations representing
crew members before implementing the program to
134
ensure that it is appropriate for situations that may
arise on board an aircraft during a flight.
‘‘(c) LIMITATION.—Actions by crew members under
this section shall be subject to the provisions of section
44903(k).’’.
SEC. 446. REVIEW OF COMPENSATION CRITERIA.
Not later than 6 months after the date of enactment
of this Act, the Comptroller General shall review the cri-
teria used by the Air Transportation Stabilization Board
to compensate air carriers following the terrorist attack
of September 11, 2001, with a particular focus on whether
it is appropriate to compensate air carriers for the de-
crease in value of their aircraft after September 11th.
SEC. 447. REVIEW OF CERTAIN AIRCRAFT OPERATIONS IN
ALASKA.
Not later than 6 months after the date of enactment
of this Act, the Administrator of the Federal Aviation Ad-
ministration shall report to Congress on whether, in light
of the demands of business within Alaska, it would be ap-
propriate to permit an aircraft to be operated under part
91 of title 14, Code of Federal Regulations, where com-
mon carriage is not involved but (1) the operator of the
aircraft organizes an entity where the only purpose of such
entity is to provide transportation by air of persons and
property to related business entities, individuals, and em-
135
ployees of such entities, and (2) the charge for such trans-
portation does not to exceed the cost of owning, operating,
and maintaining the aircraft.
TITLE V—AIRPORT
DEVELOPMENT
SEC. 501. DEFINITIONS.
(a) IN GENERAL.—Section 47102 is amended—
(1) by redesignating paragraphs (19) and (20)
as paragraphs (24) and (25), respectively;
(2) by inserting after paragraph (18) the fol-
lowing:
‘‘(23) ‘small hub airport’ means a commercial
service airport that has at least 0.05 percent but less
than 0.25 percent of the passenger boardings.’’;
(3) in paragraph (10) by striking subpara-
graphs (A) and (B) and inserting following:
‘‘(A) means, unless the context indicates
otherwise, revenue passenger boardings in the
United States in the prior calendar year on an
aircraft in service in air commerce, as the Sec-
retary determines under regulations the Sec-
retary prescribes; and
‘‘(B) includes passengers who continue on
an aircraft in international flight that stops at
136
an airport in the 48 contiguous States, Alaska,
or Hawaii for a nontraffic purpose.’’;
(4) by redesignating paragraphs (10) through
(18) as paragraphs (14) through (22), respectively;
(5) by inserting after paragraph (9) the fol-
lowing:
‘‘(10) ‘large hub airport’ means a commercial
service airport that has at least 1.0 percent of the
passenger boardings.
‘‘(12) ‘medium hub airport’ means a commer-
cial service airport that has at least 0.25 percent but
less than 1.0 percent of the passenger boardings.
‘‘(13) ‘nonhub airport’ means a commercial
service airport that has less than 0.05 percent of the
passenger boardings.’’; and
(6) by striking paragraph (6) and inserting the
following:
‘‘(6) ‘amount made available under section
48103’ or ‘amount newly made available’ means the
amount authorized for grants under section 48103
as that amount may be limited in that year by a
subsequent law, but as determined without regard to
grant obligation recoveries made in that year or
amounts covered by section 47107(f).’’.
137
(b) 
CONFORMING
AMENDMENT.—Section
47116(b)(1) is amended by striking ‘‘(as defined in section
41731 of this title)’’.
SEC. 502. REPLACEMENT OF BAGGAGE CONVEYOR SYS-
TEMS.
Section 47102(3)(B)(x) is amended by striking the
period at the end and inserting the following: ‘‘; except
that such activities shall be eligible for funding under this
subchapter only using amounts apportioned under section
47114.’’.
SEC. 503. SECURITY COSTS AT SMALL AIRPORTS.
(a) SECURITY
COSTS.—Section 47102(3)(J) is
amended to read as follows:
‘‘(J) in the case of a nonhub airport or an
airport that is not a primary airport in fiscal
year 2004, direct costs associated with new, ad-
ditional, or revised security requirements im-
posed on airport operators by law, regulation,
or order on or after September 11, 2001, if the
Government’s share is paid only from amounts
apportioned 
to 
a 
sponsor 
under 
section
47114(c), 47114(d)(3)(A), or 47114(e)’’.
(b) 
CONFORMING
AMENDMENT.—Section
47110(b)(2) is amended—
138
(1) in subparagraph (D) by striking ‘‘,
47102(3)(K), or 47102(3)(L)’’; and
(2) by aligning the margin of subparagraph (D)
with the margin of subparagraph (B).
SEC. 504. WITHHOLDING OF PROGRAM APPLICATION AP-
PROVAL.
Section 47106(d) is amended—
(1) in paragraph (1) by striking ‘‘section
47114(c) and (e) of this title’’ and inserting ‘‘sub-
sections (c), (d), and (e) of section 47114’’; and
(2) by adding at the end the following:
‘‘(4) If the Secretary withholds a grant to an airport
from the discretionary fund under section 47115 or from
the small airport fund under section 47116 on the grounds
that the sponsor has violated an assurance or requirement
of this subchapter, the Secretary shall follow the proce-
dures of this subsection.’’.
SEC. 505. RUNWAY SAFETY AREAS.
Section 47106 is amended by adding at the end the
following:
‘‘(h) RUNWAY SAFETY AREAS.—The Secretary may
approve an application under this chapter for a project
grant to construct, reconstruct, repair, or improve a run-
way only if the Secretary receives written assurances, sat-
isfactory to the Secretary, that the sponsor will undertake,
139
to the maximum extent practical, improvement of the run-
way’s safety area to meet the standards of the Federal
Aviation Administration.’’.
SEC. 506. DISPOSITION OF LAND ACQUIRED FOR NOISE
COMPATIBILITY PURPOSES.
Section 47107(c)(2)(A)(iii) is amended by inserting
before the semicolon at the end the following: ‘‘, including
the purchase of nonresidential buildings or property in the
vicinity of residential buildings or property previously pur-
chased by the airport as part of a noise compatibility pro-
gram’’.
SEC. 507. GRANT ASSURANCES.
(a) HANGAR CONSTRUCTION.—Section 47107(a) is
amended—
(1) by striking ‘‘and’’ at the end of paragraph
(19);
(2) by striking the period at the end of para-
graph (20) and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(21) if the airport owner or operator and a
person who owns an aircraft agree that a hangar is
to be constructed at the airport for the aircraft at
the aircraft owner’s expense, the airport owner or
operator will grant to the aircraft owner for the
hangar a long-term lease (of not less than 50 years)
140
that is subject to such terms and conditions on the
hangar as the airport owner or operator may im-
pose.’’.
(b) 
STATUTE
OF
LIMITATIONS..—Section
47107(l)(5)(A) is amended by inserting ‘‘or any other gov-
ernmental entity’’ after ‘‘sponsor’’.
(c) AUDIT CERTIFICATION.—Section 47107(m) is
amended—
(1) in paragraph (1) by striking ‘‘promulgate
regulations that’’ and inserting ‘‘include a provision
in the compliance supplement provisions to’’;
(2) in paragraph (1) by striking ‘‘and opinion
of the review’’; and
(3) by striking paragraph (3).
SEC. 508. ALLOWABLE PROJECT COSTS.
(a) CONSTRUCTION OR MODIFICATION OF PUBLIC
PARKING FACILITIES FOR SECURITY PURPOSES.—Section
47110 is amended—
(1) in subsection (f) by striking ‘‘subsection
(d)’’ and inserting ‘‘subsections (d) and (h)’’; and
(2) by adding at the end the following:
‘‘(h) CONSTRUCTION OR MODIFICATION OF PUBLIC
PARKING FACILITIES FOR SECURITY PURPOSES.—Not-
withstanding subsection (f)(1), a cost of constructing or
modifying a public parking facility for passenger auto-
141
mobiles to comply with a regulation or directive of the De-
partment of Homeland Security shall be treated as an al-
lowable airport development project cost.’’.
(b) DEBT FINANCING.—Section 47110 is further
amended by adding at the end the following:
‘‘(i) DEBT FINANCING.—In the case of an airport
that is not a medium hub airport or large hub airport,
the Secretary may determine that allowable airport devel-
opment project costs include payments of interest, com-
mercial bond insurance, and other credit enhancement
costs associated with a bond issue to finance the project.’’.
(c) CLARIFICATION OF ALLOWABLE COSTS..—Sec-
tion 47110(b)(1) is amended by inserting before the semi-
colon at the end ‘‘and any cost of moving a Federal facility
impeding the project if the rebuilt facility is of an equiva-
lent size and type’’.
(d) TECHNICAL AMENDMENTS.—Section 47110(e) is
amended by aligning the margin of paragraph (6) with
the margin of paragraph (5).
SEC. 509. APPORTIONMENTS TO PRIMARY AIRPORTS.
(a) FORMULA CHANGES.—Section 47114(c)(1)(A) is
amended by striking clauses (iv) and (v) and by inserting
the following:
142
‘‘(iv) $.65 for each of the next
500,000 passenger boardings at the airport
during the prior calendar year;
‘‘(v) $.50 cents for each of the next
2,500,000 passenger boardings at the air-
port during the prior calendar year; and
‘‘(vi) $.45 cents for each additional
passenger boarding at the airport during
the prior calendar year.’’.
(b) SPECIAL RULE FOR FISCAL YEARS 2004 AND
2005.—Section 47114(c)(1) is amended by adding at the
end the following:
‘‘(F) SPECIAL
RULE
FOR
FISCAL
YEARS
2004 AND 2005.—Notwithstanding subparagraph
(A) and the absence of scheduled passenger air-
craft service at an airport, the Secretary may
apportion in fiscal years 2004 and 2005 to the
sponsor of the airport an amount equal to the
amount apportioned to that sponsor in fiscal
year 2002 or 2003, whichever amount is great-
er, if the Secretary finds that—
‘‘(i) the passenger boardings at the
airport were below 10,000 in calendar year
2002 or 2003;
143
‘‘(ii) the airport had at least 10,000
passenger boardings and scheduled pas-
senger aircraft service in either calendar
year 2000 or 2001; and
‘‘(iii) 
the 
reason 
that 
passenger
boardings described in clause (i) were
below 10,000 was the decrease in pas-
sengers following the terrorist attacks of
September 11, 2001.’’.
SEC. 510. CARGO AIRPORTS.
Section 47114(c)(2) is amended—
(1) in the paragraph heading by striking
‘‘ONLY’’; and
(2) in subparagraph (A) by striking ‘‘3 per-
cent’’ and inserting ‘‘3.5 percent’’.
SEC. 511. CONSIDERATIONS IN MAKING DISCRETIONARY
GRANTS.
Section 47115(d) is amended to read as follows:
‘‘(d) CONSIDERATIONS.—
‘‘(1) 
FOR
CAPACITY
ENHANCEMENT
PROJECTS.—In selecting a project for a grant to
preserve and improve capacity funded in whole or in
part from the fund, the Secretary shall consider—
144
‘‘(A) the effect that the project will have
on overall national transportation system capac-
ity;
‘‘(B) the benefit and cost of the project,
including, in the case of a project at a reliever
airport, the number of operations projected to
be diverted from a primary airport to the re-
liever airport as a result of the project, as well
as the cost savings projected to be realized by
users of the local airport system;
‘‘(C) the financial commitment from non-
United States Government sources to preserve
or improve airport capacity;
‘‘(D) the airport improvement priorities of
the States to the extent such priorities are not
in conflict with subparagraphs (A) and (B); and
‘‘(E) the projected growth in the number
of passengers or aircraft that will be using the
airport at which the project will be carried out.
‘‘(2) FOR
ALL
PROJECTS.—In selecting a
project for a grant described in paragraph (1), the
Secretary shall consider whether—
‘‘(A) funding has been provided for all
other projects qualifying for funding during the
fiscal year under this chapter that have at-
145
tained a higher score under the numerical pri-
ority system employed by the Secretary in ad-
ministering the fund; and
‘‘(B) the sponsor will be able to commence
the work identified in the project application in
the fiscal year in which the grant is made or
within 6 months after the grant is made, which-
ever is later.’’.
SEC. 512. FLEXIBLE FUNDING FOR NONPRIMARY AIRPORT
APPORTIONMENTS.
(a) IN GENERAL.—Section 47117(c) is amended to
read as follows:
‘‘(c) USE OF SPONSOR’S APPORTIONED AMOUNTS AT
PUBLIC USE AIRPORTS.—
‘‘(1) OF SPONSOR.—An amount apportioned to
a sponsor of an airport under section 47114(c) or
47114(d)(3)(A) is available for grants for any pub-
lic-use airport of the sponsor included in the na-
tional plan of integrated airport systems.
‘‘(2) IN SAME STATE OR AREA.—A sponsor of
an airport may make an agreement with the Sec-
retary of Transportation waiving the sponsor’s claim
to any part of the amount apportioned for the air-
port under section 47114(c) or 47114(d)(3)(A) if
the Secretary agrees to make the waived amount
146
available for a grant for another public-use airport
in the same State or geographical area as the air-
port, as determined by the Secretary.’’.
(b) 
PROJECT
GRANT
AGREEMENTS.—Section
47108(a) is amended by inserting ‘‘or 47114(d)(3)(A)’’
after ‘‘under section 47114(c)’’.
(c) ALLOWABLE PROJECT COSTS.—Section 47110 is
further amended—
(1) in subsection (b)(2)(C) by striking ‘‘of this
title’’ and inserting ‘‘or section 47114(d)(3)(A)’’;
(2) in subsection (g)—
(A) 
by 
inserting 
‘‘or 
section
47114(d)(3)(A)’’ after ‘‘of section 47114(c)’’;
and
(B) by striking ‘‘of project’’ and inserting
‘‘of the project’’; and
(3) by adding at the end the following:
‘‘(j) NONPRIMARY AIRPORTS.—The Secretary may
decide that the costs of revenue producing aeronautical
support facilities, including fuel farms and hangars, are
allowable for an airport development project at a nonpri-
mary airport if the Government’s share of such costs is
paid only with funds apportioned to the airport sponsor
under section 47114(d)(3)(A) and if the Secretary deter-
147
mines that the sponsor has made adequate provision for
financing airside needs of the airport.’’.
(d) TERMINAL
DEVELOPMENT
COSTS.—Section
47119(b) is amended—
(1) by striking ‘‘or’’ at the end of paragraph
(3);
(2) by striking the period at the end of para-
graph (4) and inserting ‘‘; or’’; and
(3) by adding at the end the following:
‘‘(5) to a sponsor of a nonprimary airport, any
part of amounts apportioned to the sponsor for the
fiscal year under section 47114(d)(3)(A) for project
costs allowable under section 47110(d).’’.
SEC. 513. USE OF APPORTIONED AMOUNTS.
(a) PERIOD OF AVAILABILITY.—Section 47117(b) is
amended by striking ‘‘primary airport’’ and all that fol-
lows through ‘‘calendar year’’ and inserting ‘‘nonhub air-
port or any airport that is not a commercial service air-
port’’.
(b) SPECIAL APPORTIONMENT CATEGORIES.—Sec-
tion 47117(e)(1)(A) is amended—
(1) by striking ‘‘of this title’’ the first place it
appears and inserting a comma; and
(2) by striking ‘‘of this title’’ the second place
it appears and inserting ‘‘, for noise mitigation
148
projects approved in an environmental record of de-
cision for an airport development project under this
title, for compatible land use planning and projects
carried out by State and local governments under
section 47140, and for airport development de-
scribed in section 47102(3)(F) or 47102(3)(K) to
comply with the Clean Air Act (42 U.S.C. 7401 et
seq.)’’.
(c) ELIMINATION
OF
SUPER
RELIEVER
SET-
ASIDE.—Section 47117(e)(1)(C) is repealed.
(d) RECOVERED FUNDS.—Section 47117 is further
amended by adding at the end the following:
‘‘(h) TREATMENT
OF
CANCELED
OR
REDUCED
GRANT OBLIGATIONS.—For the purpose of determining
compliance with a limitation, enacted in an appropriations
Act, on the amount of grant obligations of funds made
available by section 48103 that may be incurred in a fiscal
year, an amount that is recovered by canceling or reducing
a grant obligation of funds made available by section
48103 shall be treated as a negative obligation that is to
be netted against the obligation limitation as enacted and
thus may permit the obligation limitation to be exceeded
by an equal amount.’’.
149
SEC. 514. MILITARY AIRPORT PROGRAM.
(a) INCREASED FUNDING LEVELS.—Subsections (e)
and (f) of section 47118 are each amended by striking
‘‘$7,000,000’’ and inserting ‘‘$10,000,000’’.
(b) REIMBURSEMENT FOR CERTAIN CONSTRUCTION
COSTS.—Section 47118(f) is amended—
(1) by striking ‘‘Not more than’’ and inserting
the following:
‘‘(1) CONSTRUCTION.—Not more than’’; and
(2) by adding at the end the following:
‘‘(2) REIMBURSEMENT.—Upon approval of the
Secretary, the sponsor of a current or former mili-
tary airport the Secretary designates under this sec-
tion may use an amount apportioned under section
47114, or made available under section 47119(b), to
the airport for reimbursement of costs incurred by
the airport in fiscal years 2003 and 2004 for con-
struction, improvement, or repair described in para-
graph (1).’’.
SEC. 515. TERMINAL DEVELOPMENT COSTS.
Section 47119(a) is amended to read as follows:
‘‘(a) REPAYING BORROWED MONEY.—
‘‘(1) TERMINAL
DEVELOPMENT
COSTS
IN-
CURRED AFTER JUNE 30, 1970, AND BEFORE JULY
12, 1976.—An amount apportioned under section
47114 and made available to the sponsor of a com-
150
mercial service airport at which terminal develop-
ment was carried out after June 30, 1970, and be-
fore July 12, 1976, is available to repay immediately
money borrowed and used to pay the costs for such
terminal development if those costs would be allow-
able project costs under section 47110(d) if they had
been incurred after September 3, 1982.
‘‘(2) TERMINAL
DEVELOPMENT
COSTS
IN-
CURRED BETWEEN JANUARY 1, 1992, AND OCTOBER
31, 1992.—An amount apportioned under section
47114 and made available to the sponsor of a
nonhub airport at which terminal development was
carried out between January 1, 1992, and October
31, 1992, is available to repay immediately money
borrowed and to pay the costs for such terminal de-
velopment if those costs would be allowable project
costs under section 47110(d).
‘‘(3) TERMINAL DEVELOPMENT COSTS AT PRI-
MARY
AIRPORTS.—An amount apportioned under
section 47114 or available under subsection (b)(3) to
a primary airport—
‘‘(A) that was a nonhub airport in the
most recent year used to calculate apportion-
ments under section 47114;
151
‘‘(B) that is a designated airport under
section 47118 in fiscal year 2003; and
‘‘(C) at which terminal development is car-
ried out between January 2003 and August
2004,
is available to repay immediately money borrowed
and used to pay the costs for such terminal develop-
ment if those costs would be allowable project costs
under section 47110(d).
‘‘(4) CONDITIONS FOR GRANT.—An amount is
available for a grant under this subsection only if—
‘‘(A) the sponsor submits the certification
required under section 47110(d);
‘‘(B) the Secretary of Transportation de-
cides that using the amount to repay the bor-
rowed money will not defer an airport develop-
ment project outside the terminal area at that
airport; and
‘‘(C) amounts available for airport develop-
ment under this subchapter will not be used for
additional terminal development projects at the
airport for at least 3 years beginning on the
date the grant is used to repay the borrowed
money.
152
‘‘(5) APPLICABILITY
OF
CERTAIN
LIMITA-
TIONS.—A grant under this subsection shall be sub-
ject to the limitations in subsection (b)(1) and (2).’’.
SEC. 516. CONTRACT TOWERS.
Section 47124(b) is amended—
(1) in paragraph (1) by striking ‘‘on December
30, 1987,’’ and inserting ‘‘on date of enactment of
the Flight 100—Century of Aviation Reauthoriza-
tion Act’’;
(2) in the heading for paragraph (3) by striking
‘‘PILOT’’;
(3) 
in 
paragraph 
(4)(C) 
by 
striking
‘‘$1,100,000’’ and inserting ‘‘$1,500,000’’; and
(4) by striking ‘‘pilot’’ each place it appears.
SEC. 517. AIRPORT SAFETY DATA COLLECTION.
Section 47130 is amended to read as follows:
‘‘§ 47130. Airport safety data collection
‘‘Notwithstanding any other provision of law, the Ad-
ministrator of the Federal Aviation Administration may
award a contract, using sole source or limited source au-
thority, or enter into a cooperative agreement with, or pro-
vide a grant from amounts made available under section
48103 to, a private company or entity for the collection
of airport safety data. In the event that a grant is provided
153
under this section, the United States Government’s share
of the cost of the data collection shall be 100 percent.’’.
SEC. 518. AIRPORT PRIVATIZATION PILOT PROGRAM.
(a) 
IN
GENERAL.—Section 
47134(b)(1) 
is
amended—
(1) in subparagraph (A) by striking clauses (i)
and (ii) and inserting the following:
‘‘(i) in the case of a primary airport,
by at least 65 percent of the scheduled air
carriers serving the airport and by sched-
uled and nonscheduled air carriers whose
aircraft landing at the airport during the
preceding calendar year, had a total landed
weight during the preceding calendar year
of at least 65 percent of the total landed
weight of all aircraft landing at the airport
during such year; or
‘‘(ii) by the Secretary at any nonpri-
mary airport after the airport has con-
sulted with at least 65 percent of the own-
ers of aircraft based at that airport, as de-
termined by the Secretary.’’;
(2) by redesignating subparagraph (B) as sub-
paragraph (C); and
154
(3) by inserting after subparagraph (A) the fol-
lowing:
‘‘(B) OBJECTION TO EXEMPTION.—An air
carrier shall be deemed to have approved a
sponsor’s application for an exemption under
subparagraph (A) unless the air carrier has
submitted an objection, in writing, to the spon-
sor within 60 days of the filing of the sponsor’s
application with the Secretary, or within 60
days of the service of the application upon that
air carrier, whichever is later.’’.
(b) 
FEDERAL
SHARE.—Section 
47109(a) 
is
amended—
(1) by inserting ‘‘and’’ at the end of paragraph
(3);
(2) by striking paragraph (4); and
(3) by redesignating paragraph (5) as para-
graph (4).
SEC. 519. INNOVATIVE FINANCING TECHNIQUES.
(a) ELIGIBLE
PROJECTS.—Section 47135(a) is
amended—
(1) in the first sentence by inserting after ‘‘ap-
prove’’ the following: ‘‘after the date of enactment of
the Flight 100—Century of Aviation Reauthoriza-
tion Act’’;
155
(2) in the first sentence by striking ‘‘20’’ and
inserting ‘‘12’’; and
(3) by striking the second sentence and insert-
ing the following: ‘‘A project using an innovative fi-
nancing technique described in subsection (c)(2)(A)
or (c)(2)(B) shall be located at an airport that is not
a medium or large hub airport. A project using the
innovative financing technique described in sub-
section (c)(2)(C) shall be located at an airport that
is a medium or large hub airport.’’.
(b) INNOVATIVE FINANCING TECHNIQUES.—Section
47135(c)(2) is amended—
(1) by striking subparagraphs (A) and (B);
(2) by redesignating subparagraphs (C) and
(D) as subparagraphs (A) and (B), respectively;
(3) in subparagraph (A) (as so redesignated) by
striking ‘‘and’’ at the end;
(4) in subparagraph (B) (as so redesignated) by
striking the period at the end and inserting ‘‘; and’’;
and
(5) by adding at the end the following:
‘‘(C) payment of interest on indebtedness
incurred to carry out a project for airport devel-
opment.’’.
156
(c) SAVINGS CLAUSE.—The amendments made by
this section shall not affect applications approved under
section 47135 of title 49, United States Code, before the
date of enactment of this Act.
SEC. 520. AIRPORT SECURITY PROGRAM.
Section 47137 is amended—
(1) by redesignating subsections (e) and (f) as
subsections (f) and (g), respectively; and
(2) by inserting after subsection (d) the fol-
lowing:
‘‘(e) ADMINISTRATION.—The Secretary, in coopera-
tion with the Secretary of Homeland Security, shall ad-
minister the program authorized by this section.’’.
SEC. 521. LOW-EMISSION AIRPORT VEHICLES AND INFRA-
STRUCTURE.
(a) EMISSIONS CREDITS.—Subchapter I of chapter
471 is amended by adding at the end the following:
‘‘§ 47138. Emission credits for air quality projects
‘‘(a) IN GENERAL.—The Secretary of Transportation
and the Administrator of the Environmental Protection
Agency shall jointly agree on how to assure that airport
sponsors receive appropriate emission credits for carrying
out projects described in sections 40117(a)(3)(G),
47102(3)(K), and 47102(3)(L). Such agreement must in-
clude, at a minimum, the following conditions:
157
‘‘(1) The provision of credits is consistent with
the Clean Air Act (42 U.S.C. 7402 et seq.).
‘‘(2) Credits generated by the emissions reduc-
tions are kept by the airport sponsor and may only
be used for purposes of any current or future gen-
eral conformity determination under the Clean Air
Act or as offsets under the Environmental Protec-
tion Agency’s new source review program for
projects on the airport or associated with the air-
port.
‘‘(3) Credits are calculated and provided to air-
ports on a consistent basis nationwide.
‘‘(4) Credits are provided to airport sponsors in
a timely manner.
‘‘(5) The establishment of a method to assure
the Secretary that, for any specific airport project
for which funding is being requested, the appro-
priate credits will be granted.
‘‘(b) ASSURANCE OF RECEIPT OF CREDITS.—
‘‘(1) IN GENERAL.—As a condition for making
a grant for 
a 
project 
described 
in 
section
47102(3)(K), 47102(3)(L), or 47139 or as a condi-
tion for granting approval to collect or use a pas-
senger facility fee for a project described in section
40117(a)(3)(G), 
47102(3)(K), 
47102(3)(L), 
or
158
47139, the Secretary must receive assurance from
the State in which the project is located, or from the
Administrator of the Environmental Protection
Agency where there is a Federal implementation
plan, that the airport sponsor will receive appro-
priate emission credits in accordance with the condi-
tions of this section.
‘‘(2) AGREEMENT ON PREVIOUSLY APPROVED
PROJECTS.—The Secretary and the Administrator of
the Environmental Protection Agency shall jointly
agree on how to provide emission credits to airport
projects previously approved under section 47136
under terms consistent with the conditions enumer-
ated in this section.’’.
(b) AIRPORT GROUND SUPPORT EQUIPMENT EMIS-
SIONS RETROFIT PILOT PROGRAM.—Subchapter I of
chapter 471 is further amended by adding at the end the
following:
‘‘§ 47139. Airport ground support equipment emis-
sions retrofit pilot program
‘‘(a) IN GENERAL.—The Secretary of Transportation
shall carry out a pilot program at not more than 10 com-
mercial service airports under which the sponsors of such
airports may use an amount made available under section
48103 to retrofit existing eligible airport ground support
159
equipment that burns conventional fuels to achieve lower
emissions utilizing emission control technologies certified
or verified by the Environmental Protection Agency.
‘‘(b) LOCATION IN AIR QUALITY NONATTAINMENT
OR MAINTENANCE AREAS.—A commercial service airport
shall be eligible for participation in the pilot program only
if the airport is located in an air quality nonattainment
area (as defined in section 171(2) of the Clean Air Act
(42 U.S.C. 7501(2)) or a maintenance area referred to
in section 175A of such Act (42 U.S.C. 7505a).
‘‘(c) SELECTION
CRITERIA.—In selecting from
among applicants for participation in the pilot program,
the Secretary shall give priority consideration to appli-
cants that will achieve the greatest air quality benefits
measured by the amount of emissions reduced per dollar
of funds expended under the pilot program.
‘‘(d) MAXIMUM AMOUNT.—Not more than $500,000
may be expended under the pilot program at any single
commercial service airport.
‘‘(e) GUIDELINES.—The Secretary, in consultation
with the Administrator of the Environmental Protection
Agency, shall establish guidelines regarding the types of
retrofit projects eligible under the pilot program by consid-
ering remaining equipment useful life, amounts of emis-
sion reduction in relation to the cost of projects, and other
160
factors necessary to carry out this section. The Secretary
may give priority to ground support equipment owned by
the airport and used for airport purposes.
‘‘(f) ELIGIBLE EQUIPMENT DEFINED.—In this sec-
tion, the term ‘eligible equipment’ means ground service
or maintenance equipment that is located at the airport,
is used to support aeronautical and related activities at
the airport, and will remain in operation at the airport
for the life or useful life of the equipment, whichever is
earlier.’’.
(c) ADDITION TO AIRPORT DEVELOPMENT.—Section
47102(3) is further amended by striking subparagraphs
(K) and (L) and inserting the following:
‘‘(K) work necessary to construct or mod-
ify airport facilities to provide low-emission fuel
systems, gate electrification, and other related
air quality improvements at a commercial serv-
ice airport if the airport is located in an air
quality nonattainment or maintenance area (as
defined in sections 171(2) and 175A of the
Clean Air Act (42 U.S.C. 7501(2), 7505a) and
if such project will result in an airport receiving
appropriate emission credits, as described in
section 47138.
161
‘‘(L) converting vehicles and ground sup-
port equipment owned by a commercial service
airport to low-emission technology or acquiring
for use at a commercial service airport vehicles
and ground support equipment that include
low-emission technology if the airport is located
in an air quality nonattainment area (as de-
fined in section 171(2) of the Clean Air Act (42
U.S.C. 7501(2)) or a maintenance area referred
to in section 175A of such Act (42 U.S.C.
7505a) and if such project will result in an air-
port receiving appropriate emission credits as
described in section 47138.’’.
(d) ALLOWABLE PROJECT COST.—Section 47110(b)
is further amended—
(1) by striking ‘‘and’’ at the end of paragraph
(4);
(2) by striking the period at the end of para-
graph (5) and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(6) in the case of a project for acquiring for
use at a commercial service airport vehicles and
ground support equipment owned by an airport that
is not described in section 47102(3) and that include
low-emission technology, if the total costs allowed for
162
the project are not more than the incremental cost
of equipping such vehicles or equipment with low-
emission technology, as determined by the Sec-
retary.’’.
(e) LOW-EMISSION TECHNOLOGY EQUIPMENT.—Sec-
tion 47102 (as amended by section 501 of this Act) is
further amended by inserting after paragraph (10) the fol-
lowing:
‘‘(11) ‘low-emission technology’ means tech-
nology for vehicles and equipment whose emission
performance is the best achievable under emission
standards established by the Environmental Protec-
tion Agency and that relies exclusively on alternative
fuels that are substantially non-petroleum based, as
defined by the Department of Energy, but not ex-
cluding hybrid systems or natural gas powered vehi-
cles.’’.
(f) CONFORMING AMENDMENTS.—The analysis of
subchapter I of chapter 471 is amended by adding at the
end the following:
‘‘47138. Emission credits for air quality projects.
‘‘47139. Airport ground support equipment emissions retrofit pilot program.’’.
163
SEC. 
522. 
COMPATIBLE 
LAND 
USE 
PLANNING 
AND
PROJECTS BY STATE AND LOCAL GOVERN-
MENTS.
(a) IN GENERAL.—Subchapter I of chapter 471 is
further amended by adding at the end the following:
‘‘§ 47140. Compatible land use planning and projects
by State and local governments
‘‘(a) IN GENERAL.—The Secretary of Transportation
may make grants from amounts set aside under section
47117(e)(1)(A) to States and units of local government
for land use compatibility plans or projects resulting from
those plans for the purposes of making the use of land
areas around large hub airports and medium hub airports
compatible with aircraft operations if—
‘‘(1) the airport operator has not submitted a
noise compatibility program to the Secretary under
section 47504 or has not updated such program
within the past 10 years; and
‘‘(2) the land use plan meets the requirements
of this section and any project resulting from the
plan meets such requirements.
‘‘(b) ELIGIBILITY.—In order to receive a grant under
this section, a State or unit of local government must—
‘‘(1) have the authority to plan and adopt land
use control measures, including zoning, in the plan-
164
ning area in and around a large or medium hub air-
port;
‘‘(2) provide written assurance to the Secretary
that it will work with the affected airport to identify
and adopt such measures; and
‘‘(3) provide written assurance to the Secretary
that it will achieve, to the maximum extent possible,
compatible land uses consistent with Federal land
use compatibility criteria under section 47502(3)
and that those compatible land uses will be main-
tained.
‘‘(c) ASSURANCES.—The Secretary shall require a
State or unit of local government to which a grant may
be awarded under this section for a land use plan or a
project resulting from such a plan to provide—
‘‘(1) assurances satisfactory to the Secretary
that the plan—
‘‘(A) is reasonably consistent with the goal
of reducing existing noncompatible land uses
and preventing the introduction of additional
noncompatible land uses;
‘‘(B) addresses ways to achieve and main-
tain compatible land uses, including zoning,
building codes, and any other projects under
section 47504(a)(2) that are within the author-
165
ity of the State or unit of local government to
implement;
‘‘(C) uses noise contours provided by the
airport operator that are consistent with the
airport operation and planning, including any
noise abatement measures adopted by the air-
port operator as part of its own noise mitiga-
tion efforts;
‘‘(D) does not duplicate, and is not incon-
sistent with, the airport operator’s noise com-
patibility measures for the same area; and
‘‘(E) has received concurrence by the air-
port operator prior to adoption by the State or
unit of local government; and
‘‘(2) such other assurances as the Secretary de-
termines to be necessary to carry out this section.
‘‘(d) GUIDELINES.—The Secretary shall establish
guidelines to administer this section in accordance with
the purposes and conditions described in this section. The
Secretary may require the State or unit of local govern-
ment to which a grant may be awarded under this section
to provide progress reports and other information as the
Secretary determines to be necessary to carry out this sec-
tion.
166
‘‘(e) ELIGIBLE PROJECTS.—The Secretary may ap-
prove a grant under this section to a State or unit of local
government for a land use compatibility project only if the
Secretary is satisfied that the project is consistent with
the guidelines established by the Secretary under this sec-
tion, that the State or unit of local government has pro-
vided the assurances required by this section, that the Sec-
retary has received evidence that the State or unit of local
government has implemented (or has made provision to
implement) those elements of the plan that are not eligible
for Federal financial assistance, and that the project is
not inconsistent with Federal standards.
‘‘(f) SUNSET.—This section shall not be in effect
after September 30, 2007.’’.
(b) CONFORMING AMENDMENT.—The analysis of
subchapter I of chapter 471 is further amended by adding
at the end the following:
‘‘47140. Compatible land use planning and projects by State and local govern-
ments.’’.
SEC. 523. PROHIBITION ON REQUIRING AIRPORTS TO PRO-
VIDE RENT-FREE SPACE FOR FEDERAL AVIA-
TION ADMINISTRATION.
(a) IN GENERAL.—Subchapter I of chapter 471 is
further amended by adding at the end the following:
167
‘‘§ 47141. Prohibition on rent-free space requirements
for Federal Aviation Administration
‘‘(a) IN GENERAL.—The Secretary of Transportation
may not require an airport sponsor to provide to the Fed-
eral Aviation Administration, without compensation, space
in a building owned by the sponsor and costs associated
with such space for building construction, maintenance,
utilities, and other expenses.
‘‘(b) NEGOTIATED AGREEMENTS.—Subsection (a)
does not prohibit—
‘‘(1) the negotiation of agreements between the
Secretary and an airport sponsor to provide building
construction, maintenance, utilities and expenses, or
space in airport sponsor-owned buildings to the Fed-
eral Aviation Administration without cost or at
below-market rates; or
‘‘(2) the Secretary of Transportation from re-
quiring airport sponsors to provide land without cost
to the Federal Aviation Administration for air traffic
control facilities.’’.
(b) CONFORMING AMENDMENT.—The analysis for
subchapter I of chapter 471 is further amended by adding
at the end the following:
‘‘47141. Prohibition on rent-free space requirements for Federal Aviation Ad-
ministration.’’.
168
SEC. 524. MIDWAY ISLAND AIRPORT.
(a) FINDINGS.—Congress finds that the continued
operation of the Midway Island Airport in accordance with
the standards of the Federal Aviation Administration ap-
plicable to commercial airports is critical to the safety of
commercial, military, and general aviation in the mid-Pa-
cific Ocean region.
(b) MEMORANDUM OF UNDERSTANDING ON SALE OF
AIRCRAFT FUEL.—The Secretary of Transportation shall
enter into a memorandum of understanding with the Sec-
retaries of Defense, Interior, and Homeland Security to
facilitate the sale of aircraft fuel on Midway Island at a
price that will generate sufficient revenue to improve the
ability of the airport to operate on a self-sustaining basis
in accordance with the standards of the Federal Aviation
Administration applicable to commercial airports. The
memorandum shall also address the long-range potential
of promoting tourism as a means to generate revenue to
operate the airport.
(c) TRANSFER OF NAVIGATION AIDS AT MIDWAY IS-
LAND AIRPORT.—The Midway Island Airport may trans-
fer, without consideration, to the Administrator the navi-
gation aids at the airport. The Administrator shall accept
the navigation aids and operate and maintain the naviga-
tion aids under criteria of the Administrator.
169
(d) FUNDING TO THE SECRETARY OF INTERIOR FOR
MIDWAY ISLAND AIRPORT.—
(1) IN GENERAL.—Chapter 481 is amended by
adding at the end the following:
‘‘§ 48114. Funding to the Secretary of Interior for
Midway Island Airport
‘‘The following amounts shall be available (and shall
remain available until expended) to the Secretary of Inte-
rior, out of the Airport and Airway Trust Fund estab-
lished under section 9502 of the Internal Revenue Code
of 1986 (26 U.S.C. 9502), for airport capital projects at
the Midway Island Airport:
‘‘(1) $750,000 for fiscal year 2004.
‘‘(2) $2,500,000 for fiscal year 2005.
‘‘(3) $1,000,000 for fiscal year 2006.
‘‘(4) $1,000,000 for fiscal year 2007.’’.
(2) CONFORMING AMENDMENT.—The analysis
for chapter 481 is amended by adding at the end the
following:
‘‘48114. Funding to the Secretary of Interior for Midway Island Airport.’’.
SEC. 525. INTERMODAL PLANNING.
Section 47106(c)(1)(A) is amended—
(1) by striking ‘‘and’’ at the end of clause (i);
(2) by adding ‘‘and’’ at the end of clause (ii);
and
(3) by adding at the end the following:
170
‘‘(iii) with respect to an airport develop-
ment project involving the location of an airport
or runway or major runway extension at a me-
dium or large hub airport, the airport sponsor
has made available to and has provided upon
request to the metropolitan planning organiza-
tion in the area in which the airport is located,
if any, a copy of the proposed amendment to
the airport layout plan to depict the project and
a copy of any airport master plan in which the
project is described or depicted;’’.
SEC. 526. STATUS REVIEW OF MARSHALL ISLANDS AIR-
PORT.
Not later than 6 months after the date of enactment
of this Act, the Secretary of Transportation shall review
the status of the airport on the Marshall Islands and re-
port to Congress on whether it is appropriate and nec-
essary for that airport to receive grants under the airport
improvement program.
SEC. 527. REPORT ON WAIVERS OF PREFERENCE FOR BUY-
ING GOODS PRODUCED IN THE UNITED
STATES.
Not later than 90 days after the date of the enact-
ment of this Act, the Secretary of Transportation shall
submit to Congress a report on the waiver contained in