Sec. 102. Air navigation facilities and equipment. 
Sec. 103. Airport planning and development and noise compatibility planning 
and programs. 
Sec. 104. Additional reauthorizations. 
Sec. 105. Insurance. 
TITLE II—AIRPORT PROJECT STREAMLINING 
Sec. 201. Short title. 
Sec. 202. Findings. 
Sec. 203. Promotion of new runways. 
Sec. 204. Airport project streamlining. 
Sec. 205. Governor’s certificate. 
Sec. 206. Construction of certain airport capacity projects. 
Sec. 207. Limitations. 
Sec. 208. Relationship to other requirements. 
TITLE III—FEDERAL AVIATION REFORM 
Sec. 301. Management advisory committee members. 
Sec. 302. Reorganization of the Air Traffic Services Subcommittee. 
Sec. 303. Clarification of the responsibilities of the Chief Operating Officer. 
Sec. 304. Small Business Ombudsman. 
Sec. 305. FAA purchase cards. 
TITLE IV—AIRLINE SERVICE IMPROVEMENTS 
Sec. 401. Improvement of aviation information collection. 
Sec. 402. Data on incidents and complaints involving passenger and baggage 
security screening. 
Sec. 403. Definitions. 
Sec. 404. Clarifications to procurement authority. 
Sec. 405. Low-emission airport vehicles and ground support equipment. 
Sec. 406. Streamlining of the passenger facility fee program. 
Sec. 407. Financial management of passenger facility fees. 
Sec. 408. Overflights of national parks. 
Sec. 409. Collaborative decision making pilot program. 
Sec. 410. Availability of aircraft accident site information. 
Sec. 411. Slot exemptions at Ronald Reagan Washington National Airport. 
Sec. 412. Notice concerning aircraft assembly. 
Sec. 413. Small community air service. 
Sec. 414. Protection of employees providing air safety information. 
Sec. 415. Type certificates. 
Sec. 416. Design organization certificates. 
Sec. 417. Counterfeit or fraudulently represented parts violations. 
Sec. 418. Runway safety standards. 
Sec. 419. Availability of maintenance information. 
Sec. 420. Flight attendant certification. 
Sec. 421. Civil penalty for closure of an airport without providing sufficient no-
tice. 
Sec. 422. Amendment of general fee schedule provision. 
Sec. 423. Improvement of curriculum standards for aviation maintenance tech-
nicians. 
Sec. 424. Task force on future of air transportation system. 
Sec. 425. Air quality in aircraft cabins. 
Sec. 426. Recommendations concerning travel agents.
Sec. 427. Task force on enhanced transfer of applications of technology for 
military aircraft to civilian aircraft. 
Sec. 428. Reimbursement for losses incurred by general aviation entities. 
Sec. 429. Impasse procedures for national association of air traffic specialists. 
Sec. 430. FAA inspector training. 
Sec. 431. Prohibition on air traffic control privatization. 
Sec. 432. Airfares for members of the Armed Forces. 
TITLE V—AIRPORT DEVELOPMENT 
Sec. 501. Definitions. 
Sec. 502. Replacement of baggage conveyor systems. 
Sec. 503. Security costs at small airports. 
Sec. 504. Withholding of program application approval. 
Sec. 505. Runway safety areas. 
Sec. 506. Disposition of land acquired for noise compatibility purposes. 
Sec. 507. Grant assurances. 
Sec. 508. Allowable project costs. 
Sec. 509. Apportionments to primary airports. 
Sec. 510. Cargo airports. 
Sec. 511. Considerations in making discretionary grants. 
Sec. 512. Flexible funding for nonprimary airport apportionments. 
Sec. 513. Use of apportioned amounts. 
Sec. 514. Military airport program. 
Sec. 515. Contract towers. 
Sec. 516. Airport safety data collection. 
Sec. 517. Airport privatization pilot program. 
Sec. 518. Innovative financing techniques. 
Sec. 519. Airport security program. 
Sec. 520. Low-emission airport vehicles and infrastructure. 
Sec. 521. Compatible land use planning and projects by State and local govern-
ments. 
Sec. 522. Midway Island Airport.
SEC. 2. AMENDMENTS TO TITLE 49, UNITED STATES CODE. 
Except as otherwise expressly provided, whenever in 
this Act an amendment or repeal is expressed in terms 
of an amendment to, or a repeal of, a section or other 
provision, the reference shall be considered to be made to 
a section or other provision of title 49, United States 
Code.
SEC. 3. EFFECTIVE DATE. 
Except as otherwise expressly provided, this Act and 
the amendments made by this Act shall be effective on 
the date of enactment of this Act. 
TITLE I—AUTHORIZATIONS 
SEC. 101. FEDERAL AVIATION ADMINISTRATION OPER-
ATIONS. 
(a) IN GENERAL.—Section 106(k) is amended to 
read as follows: 
‘‘(k) AUTHORIZATION OF APPROPRIATIONS.—
‘‘(1) SALARIES, OPERATIONS, AND
MAINTE-
NANCE.—There is authorized to be appropriated to 
the Secretary of Transportation for salaries, oper-
ations and maintenance of the Administration—
‘‘(A) $7,591,000,000 for fiscal year 2004; 
‘‘(B) $7,732,000,000 for fiscal year 2005; 
‘‘(C) $7,889,000,000 for fiscal year 2006; 
and 
‘‘(D) $8,064,000,000 for fiscal year 2007. 
Such sums shall remain available until expended.’’. 
‘‘(2) OPERATION
OF
CENTER
FOR
MANAGE-
MENT AND DEVELOPMENT.—Out of amounts appro-
priated under paragraph (1), such sums as may be 
necessary may be expended by the Center for Man-
agement Development of the Federal Aviation Ad-
ministration to operate at least 200 courses each
year and to support associated student travel for 
both residential and field courses. 
‘‘(3) AIR TRAFFIC MANAGEMENT SYSTEM.—Out 
of amounts appropriated under paragraph (1), such 
sums as may be necessary may be expended by the 
Federal Aviation Administration for the establish-
ment and operation of a new office to develop, in co-
ordination with the Department of Defense, the Na-
tional Aeronautics and Space Administration, and 
the Department of Homeland Security, the next gen-
eration air traffic management system and a transi-
tion plan for the implementation of that system. The 
office shall be known as the ‘Next Generation Air 
Transportation System Joint Program Office’. 
‘‘(4) HELICOPTER
AND
TILTROTOR
PROCE-
DURES.—Out of amounts appropriated under para-
graph (1), such sums as may be necessary may be 
expended by the Federal Aviation Administration for 
the establishment of helicopter and tiltrotor ap-
proach and departure procedures using advanced 
technologies, such as the Global Positioning System 
and automatic dependent surveillance, to permit op-
erations in adverse weather conditions to meet the 
needs of air ambulance services.
‘‘(5) ADDITIONAL
AIR
TRAFFIC
CONTROL-
LERS.—Out of amounts appropriated under para-
graph (1), such sums as may be necessary may be 
expended to hire additional air traffic controllers in 
order to meet increasing air traffic demands and to 
address the anticipated increase in the retirement of 
experienced air traffic controllers. 
‘‘(6) COMPLETION OF ALASKA AVIATION SAFE-
TY PROJECT.—Out of amounts appropriated under 
paragraph (1), $6,000,000 may be expended for the 
completion of the Alaska aviation safety project with 
respect to the 3 dimensional mapping of Alaska’s 
main aviation corridors.’’. 
(b) AIRLINE DATA AND ANALYSIS.—There is author-
ized to be appropriated to the Secretary of Transportation, 
out of the Airport and Airway Trust Fund established by 
section 9502 of the Internal Revenue Code of 1986 (26 
U.S.C. 
9502), 
$3,971,000 
for 
fiscal 
year 
2004, 
$4,045,000 for fiscal year 2005, $4,127,000 for fiscal year 
2006, and $4,219,000 for fiscal year 2007 to gather air-
line data and conduct analyses of such data in the Bureau 
of Transportation Statistics of the Department of Trans-
portation.
(c) HUMAN CAPITAL WORKFORCE STRATEGY.—
(6) in subsection (f)—
(A) by striking ‘‘for fiscal years beginning 
after September 30, 2000’’; and 
(B) by inserting ‘‘may be used’’ after ‘‘nec-
essary’’. 
SEC. 103. AIRPORT PLANNING AND DEVELOPMENT AND 
NOISE COMPATIBILITY PLANNING AND PRO-
GRAMS. 
(a) AUTHORIZATION.—Section 48103 is amended—
(1) by striking ‘‘September 30, 1998’’ and in-
serting ‘‘September 30, 2003’’; and 
(2) by striking subparagraphs (1) through (5) 
and inserting: 
‘‘(1) $3,400,000,000 for fiscal year 2004; 
‘‘(2) $3,600,000,000 for fiscal year 2005; 
‘‘(3) $3,800,000,000 for fiscal year 2006; and 
‘‘(4) $4,000,000,000 for fiscal year 2007.’’. 
(b) OBLIGATIONAL AUTHORITY.—Section 47104(c) 
is amended by striking ‘‘September 30, 2003’’ and insert-
ing ‘‘September 30, 2007’’. 
SEC. 104. ADDITIONAL REAUTHORIZATIONS. 
(a) CONTRACT AIR TRAFFIC CONTROL TOWER PILOT 
PROGRAM.—Section 47124(b)(3)(E) is amended by strik-
ing 
‘‘$6,000,000 
per 
fiscal 
year’’ 
and 
inserting 
‘‘$6,500,000 for fiscal year 2004, $7,000,000 for fiscal
year 2005, $7,500,000 for fiscal year 2006, and 
$8,000,000 for fiscal year 2007’’. 
(b) SMALL
COMMUNITY
AIR
SERVICE.—Section 
41743(e)(2) is amended—
(1) by striking ‘‘and’’ the first place it appears 
and inserting a comma; and 
(2) by inserting after ‘‘2003’’ the following ‘‘, 
and $35,000,000 for each of fiscal years 2004 
through 2008’’. 
(c) REGIONAL AIR SERVICE INCENTIVE PROGRAM.—
Section 41766 is amended by striking ‘‘2003’’ and insert-
ing ‘‘2007’’. 
(d) FUNDING FOR AVIATION PROGRAMS.—Section 
106 of the Wendell H. Ford Aviation Investment and Re-
form Act for the 21st Century (49 U.S.C. 48101 note) 
is amended by striking ‘‘2003’’ each place it appears and 
inserting ‘‘2007’’. 
(e) DESIGN-BUILD CONTRACTING.—Section 139(e) 
of the Wendell H. Ford Aviation Investment and Reform 
Act for the 21st Century (49 U.S.C. 47104 note) is 
amended by striking ‘‘2003’’ and inserting ‘‘2007’’. 
(f) METROPOLITAN WASHINGTON AIRPORTS AU-
THORITY.—Section 49108 is amended by striking ‘‘2004’’ 
and inserting ‘‘2007’’.
SEC. 105. INSURANCE. 
(a) TERMINATION.—Section 44310 is amended to 
read as follows: 
‘‘§ 44310. Termination date 
‘‘Effective December 31, 2007, the authority of the 
Secretary of Transportation to provide insurance and rein-
surance under this chapter shall be limited to—
‘‘(1) the operation of an aircraft by an air car-
rier or foreign air carrier in foreign air commerce or 
between at least 2 points, all of which are outside 
the United States; and 
‘‘(2) insurance obtained by a department, agen-
cy, or instrumentality of the United States under 
section 44305.’’. 
(b) EXTENSION OF POLICIES.—Section 44302(f)(1) 
is amended by striking ‘‘through December 31, 2003,’’ 
and inserting ‘‘thereafter’’. 
(c) AIRCRAFT
MANUFACTURER
LIABILITY
FOR 
THIRD PARTY CLAIMS ARISING OUT OF ACTS OF TER-
RORISM.—Section 44303(b) is amended by adding at the 
end the following: ‘‘The Secretary may extend the provi-
sions of this subsection to the United States manufacturer 
(as defined in section 44310) of the aircraft of the air 
carrier involved.’’. 
(d) VENDORS, AGENTS, SUBCONTRACTORS, AND 
MANUFACTURERS.—
(1) IN GENERAL.—Chapter 443 is amended—
(A) by redesignating section 44310 (as 
amended by subsection (a) of this section) as 
section 44311; and 
(B) by inserting after section 44309 the 
following:
‘‘§ 44310. Vendors, agents, subcontractors, and manu-
facturers 
‘‘(a) IN GENERAL.—The Secretary of Transportation 
may extend the application of any provision of this chapter 
to a loss of a vendor, agent, and subcontractor of an air 
carrier and a United States manufacturer of an aircraft 
used by an air carrier but only to the extent that the loss 
involved an aircraft of an air carrier. 
‘‘(b) UNITED STATES MANUFACTURER DEFINED.—
In this section, the term ‘‘United States manufacturer’’ 
means a manufacturer incorporated under the laws of the 
United States.’’. 
(2) CONFORMING
AMENDMENT.—The analysis for 
chapter 443 is amended by striking the item relating to 
section 44310 and inserting the following:
‘‘44310. Vendors, agents, subcontractors, and manufacturers. 
‘‘44311. Termination date’’.
(e) TECHNICAL CORRECTIONS.—Effective November 
19, 2001, the Aviation and Transportation Security Act 
(115 Stat. 597) is amended—
(1) in section 147 by striking ‘‘44306(b)’’ and 
inserting ‘‘44306(c)’’; and 
(2) in section 124(b) by striking ‘‘to carry out 
foreign policy’’ and inserting ‘‘to carry out the for-
eign policy’’. 
TITLE II—AIRPORT PROJECT 
STREAMLINING 
SEC. 201. SHORT TITLE. 
This title may be cited as the ‘‘Airport Streamlining 
Approval Process Act of 2003’’. 
SEC. 202. FINDINGS. 
Congress finds that—
(1) airports play a major role in interstate and 
foreign commerce; 
(2) congestion and delays at our Nation’s major 
airports have a significant negative impact on our 
Nation’s economy; 
(3) airport capacity enhancement projects at 
congested airports are a national priority and should 
be constructed on an expedited basis; 
(4) airport capacity enhancement projects must 
include an environmental review process that pro-
vides local citizenry an opportunity for consideration 
of and appropriate action to address environmental 
concerns; and
(5) the Federal Aviation Administration, airport 
authorities, communities, and other Federal, State, 
and local government agencies must work together 
to develop a plan, set and honor milestones and 
deadlines, and work to protect the environment while 
sustaining the economic vitality that will result from 
the continued growth of aviation. 
SEC. 203. PROMOTION OF NEW RUNWAYS. 
Section 40104 is amended by adding at the end the 
following: 
‘‘(c) AIRPORT CAPACITY ENHANCEMENT PROJECTS 
AT CONGESTED AIRPORTS.—In carrying out subsection 
(a), the Administrator shall take action to encourage the 
construction of airport capacity enhancement projects at 
congested airports as those terms are defined in section 
47178.’’. 
SEC. 204. AIRPORT PROJECT STREAMLINING. 
(a) IN GENERAL.—Chapter 471 is amended by in-
serting after section 47153 the following: 
‘‘SUBCHAPTER III—AIRPORT PROJECT 
STREAMLINING 
‘‘§ 47171. DOT as lead agency 
‘‘(a) AIRPORT PROJECT REVIEW PROCESS.—The 
Secretary of Transportation shall develop and implement
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 Council on Environmental Quality, the Com-
mittee on Transportation and Infrastructure of the 
House of Representatives, and the Committee on 
Commerce, Science and Transportation of the Sen-
ate. 
‘‘(f) PROCEDURAL PROVISIONS.—The procedures set 
forth in subsections (c), (e), (g), (h), and (i) of section
‘‘(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.’’.
(c) JUDICIAL REVIEW.—The first sentence of section 
46110(a) is amended—
(1) by inserting ‘‘in whole or in part’’ after the 
’’the Administrator)’’; and 
(2) by inserting ‘‘and under part B’’ after 
‘‘under this part’’. 
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 47177) 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
47177) 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’’; 
(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’’; 
and 
(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)—
(i) by striking ‘‘Council’’ and inserting 
‘‘Board’’; and 
(ii) by striking ‘‘appointed under 
paragraph (2)(E)’’; 
(9) in paragraph (6)(H)—
(i) by striking ‘‘SUBCOMMITTEE’’ in 
the subparagraph heading and inserting 
‘‘BOARD’’; 
(ii) by striking ‘‘under paragraph 
(2)(E)’’ in clause (i) and inserting ‘‘to the 
Board’’; and
(iii) by striking ‘‘Air Traffic Services 
Subcommittee’’ 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’’; and 
(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’’; and 
(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’’; 
and 
(ii) by striking ‘‘Administrator, the 
Council’’ each place it appears in clauses 
(i) and (ii) and inserting ‘‘Secretary’’; and 
(M) by adding at the end the following: 
‘‘(I) AUTHORIZATION.—There is 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 Council’’ and inserting ‘‘Air Traffic Serv-
ices Board’’; and 
(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-
reimburseable 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 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 re-
duces 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 the Secretary of 
Transportation in the publication of data under 
paragraph (1), the Secretary of Homeland Security 
shall submit monthly to the Secretary of Transpor-
tation a report on the number of complaints about 
security screening received by the Secretary of 
Homeland Security.’’. 
SEC. 403. DEFINITIONS. 
(a) IN GENERAL.—Section 40102(a) is amended—
(1) by redesignating paragraphs (38) through 
(42) as paragraphs (43) through (47), respectively; 
(2) by inserting after paragraph (37) the 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 (32) through 
(37) as paragraphs (36) through (41) respectively; 
(4) by inserting after paragraph (32) the following:
‘‘(36) PASSENGER BOARDINGS.—The term ‘pas-
senger 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); 
(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(a) 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); and
(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 and shall be sub-
ject to judicial review under section 46110 and to 
the provisions of the Equal Access to Justice Act (5 
U.S.C. 504).’’. 
(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 applica-
tion or notice submitted under subparagraph 
(A) copies of all certifications of agreement or 
disagreement received under subparagraph (D). 
‘‘(F) For the purpose of this section, an el-
igible agency providing notice and an oppor-
tunity for consultation to an air carrier or for-
eign air carrier is deemed to have satisfied the 
requirements of this paragraph if the eligible
agency limits such notices and consultations to 
air carriers and foreign air carriers that have a 
significant business interest at the airport. In 
the subparagraph, the term ‘significant busi-
ness interest’ means an air carrier or foreign 
air carrier that had no less than 1.0 percent of 
passenger boardings at the airport in the prior 
calendar year, had at least 25,000 passenger 
boardings at the airport in the prior calendar 
year, or provides scheduled service at the air-
port.’’; 
(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 agen-
cy provide public notice of intent to collect a 
passenger facility fee so as to inform those in-
terested persons and agencies who may be af-
fected, which public notice may include—
‘‘(i) publication in local newspapers of 
general circulation; 
‘‘(ii) publication in other local media; 
and 
‘‘(ii) posting the notice on the agen-
cy’s web-site. 
‘‘(B) A requirement for submission of pub-
lic comments no sooner than 30 days, and no 
later than 45 days, after the date of the publi-
cation of the notice. 
‘‘(C) A requirement that the agency in-
clude in its application or notice submitted 
under subparagraph (A) copies of all comments 
received under subparagraph (B).’’; and 
(4) in the first sentence of paragraph (4) (as 
redesignated by paragraph (2) of this subsection) by 
striking ‘‘shall’’ and inserting ‘‘may’’. 
(b) PILOT PROGRAM FOR PASSENGER FACILITY FEE 
AUTHORIZATIONS
AT
NONHUB
AIRPORTS.—Section 
40117 is amended by adding at the end the following: 
‘‘(l) PILOT PROGRAM FOR PASSENGER FACILITY FEE 
AUTHORIZATIONS AT NONHUB AIRPORTS.—
‘‘(1) IN GENERAL.—The Secretary shall 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 amend-
ed—
(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 pas-
senger did not pay for the air transportation 
which resulted in such enplanement due to 
charter arrangements and payment by the De-
partment of Defense.’’. 
(d) TECHNICAL AMENDMENTS.—Section 40117 is 
amended—
(1) in subsection (a)(3)(C) by striking ‘‘for 
costs’’ and inserting ‘‘A project’’; 
(2) in subsection (a)(3)(C) by striking the semi-
colon and inserting a period; and 
(3) in subsection (e)(2)(C) by striking the pe-
riod and inserting a semicolon.
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.
‘‘(3) 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. 
‘‘(4) PROHIBITION.—An air carrier and its 
agents may not grant to any third party any secu-
rity or other interest in passenger facility revenue. 
‘‘(5) 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. 
‘‘(6) 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. 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), (b)(3)(B), and 
(b)(3)(C) by inserting ‘‘over a national park’’ after 
‘‘operations’’; 
(3) in subsection (b)(3)(D) by striking ‘‘at the 
park’’ and inserting ‘‘over a national park’’; 
(4) in subsection (b)(3)(E) by inserting ‘‘over a 
national park’’ after ‘‘operations’’ the first place it 
appears; 
(5) in subsections (c)(2)(A)(i) and (c)(2)(B) by 
inserting ‘‘over a national park’’ after ‘‘operations’’;
(6) in subsection (f)(1) by inserting ‘‘over a na-
tional park’’ after ‘‘operation’’; 
(7) 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),’’; and 
(8) in subsection (f)(4)(B) by inserting ‘‘over a 
national park’’ after ‘‘operation’’. 
(b) GRAND
CANYON
NATIONAL
PARK
SPECIAL 
FLIGHT RULES AREA OPERATION CURFEW.—
(1) IN
GENERAL.—The Administrator of the 
Federal Aviation Administration may not restrict 
commercial Special Flight Rules Area operations in 
the Dragon and Zuni Point corridors of the Grand 
Canyon National Park during the period beginning 
1-hour after sunrise and ending 1-hour before sun-
set, unless required for aviation safety purposes. 
(2) EFFECT ON EXISTING REGULATIONS.—Be-
ginning on the date of enactment of this Act, section
93.317 of title 14, Code of Federal Regulations, 
shall not be in effect. 
SEC. 409. COLLABORATIVE DECISION MAKING PILOT PRO-
GRAM. 
(a) IN GENERAL.—Chapter 401 is amended by add-
ing at the end the following: 
‘‘§ 40129. Collaborative decision making pilot pro-
gram 
‘‘(a) ESTABLISHMENT.—Not later than 90 days after 
the date of enactment of this section, the Administrator 
of the Federal Aviation Administration shall establish a 
collaborative decisionmaking pilot program in accordance 
with this section. 
‘‘(b) DURATION.—Except as provided in subsection 
(k), the pilot program shall be in effect for a period of 
2 years. 
‘‘(c) GUIDELINES.—
‘‘(1) ISSUANCE.—The Administrator shall issue 
guidelines concerning the pilot program. Such 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 under the pilot program, 
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 con-
cerning changes in their respective flight schedules in 
order to most effectively use air traffic capacity. The Ad-
ministration shall facilitate and monitor such communica-
tion. 
‘‘(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, in consultation with the Attorney General, finds 
that the pilot program or the participation of an air car-
rier or foreign air carrier in the pilot program has had, 
or is having, an adverse effect on competition among car-
riers. 
‘‘(h) ANTITRUST IMMUNITY.—
‘‘(1) IN GENERAL.—Unless, within 5 days after 
receiving notice from the Secretary of the Sec-
retary’s intention to exercise authority under this 
subsection, the Attorney General submits to the Sec-
retary a written objection to such action, including 
reasons for such objection, the Secretary may ex-
empt an air carrier’s or foreign air carrier’s activi-
ties that are necessary to participate in the pilot 
program under this section from the antitrust laws 
for the sole purpose of participating in the pilot pro-
gram. Such exemption shall not extend to any dis-
cussions, agreements, or activities outside the scope 
of the pilot program. 
‘‘(2) ANTITRUST LAWS DEFINED.—In this sec-
tion, the term ‘antitrust laws’ has the meaning given 
that term in the first section of the Clayton Act (15 
U.S.C. 12). 
‘‘(i) CONSULTATION WITH ATTORNEY GENERAL.—
The Secretary shall consult with the Attorney General re-
garding the design and implementation of the pilot pro-
gram, including determining whether a limit should be set 
on the number of occasions collaborative decisionmaking 
could be employed during the initial 2-year period of the 
pilot program. 
‘‘(j) 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, in consultation with the Attorney 
General, shall determine whether the pilot program 
has had an adverse effect on airline competition or 
the availability of air services to communities. The 
Administrator shall also examine whether capacity 
benefits resulting from the participation in the pilot 
program of an airport resulted in capacity benefits 
to other parts of the national airspace system. 
‘‘(2) OBTAINING NECESSARY DATA.—The Ad-
ministrator may require participating air carriers 
and airports to provide data necessary to evaluate 
the pilot program’s impact. 
‘‘(k) 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 (j) that the pilot 
program has facilitated more effective use of air traffic 
capacity and if the Secretary, in consultation with the At-
torney General, determines that the pilot program has had 
no adverse effect on airline competition or the availability 
of air services to communities. The Administrator shall se-
lect 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. Pilot program for improved collaborative decisionmaking during times 
of reduced capacity.’’.
SEC. 410. 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 second 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 
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. 411. SLOT EXEMPTIONS AT RONALD REAGAN WASH-
INGTON NATIONAL AIRPORT. 
(a) 
BEYOND-PERIMETER
EXEMPTIONS.—Section 
41718(a) is amended by striking ‘‘12’’ and inserting ‘‘36’’. 
(b) 
WITHIN-PERIMETER
EXEMPTIONS.—Section 
41718(b) is amended—
(1) by striking ‘‘12’’ and inserting ‘‘24’’; 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 ‘‘4’’. 
(2) ALLOCATION
OF
WITHIN-PERIMETER
EX-
EMPTIONS.—Section 41718(c)(3) is amended—
(A) in subparagraph (A)—
(i) by striking ‘‘four’’ and inserting 
‘‘six’’; and 
(ii) by striking ‘‘and’’ at the end; 
(B) in subparagraph (B)—
(i) by striking ‘‘eight’’ and inserting 
‘‘twelve’’; and 
(ii) by striking the period at the end 
and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(C) six 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) 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. 
(3) 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. 
SEC. 412. 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. 413. SMALL COMMUNITY AIR SERVICE. 
(a) COMPENSATION GUIDELINES, LIMITATION, AND 
CLAIMS.—
(1) PAYMENT
OF
PROMOTIONAL
AMOUNTS.—
Section 41737(a)(2) is amended by inserting before 
the period at the end ‘‘or may be paid directly to the 
unit of local government having jurisdiction over the 
eligible place served by the air carrier’’. 
(2) 
LOCAL
SHARE.—Section 
41737(a) 
is 
amended by adding at the end the following: 
‘‘(3) The guidelines may require a unit of local gov-
ernment having jurisdiction over an eligible place that is 
less than 170 miles from a medium or large hub or less 
than 75 miles from a small hub or a State within the 
boundaries of which the eligible place is located to pay 2.5 
percent in fiscal year 2005, 5 percent in fiscal year 2006, 
7.5 percent in fiscal year 2007, and 10 percent in fiscal 
year 2008 of the amount of compensation payable under 
this subchapter for air transportation with respect to the
eligible place to ensure the continuation of that air trans-
portation. In determining the mileage between the eligible 
place and a hub, the Secretary shall use the most com-
monly used highway route between the eligible place and 
the hub.’’. 
(3) AUTHORITY
TO
MAKE
AGREEMENTS
AND 
INCUR OBLIGATIONS.—Section 41737(d) is amend-
ed—
(A) by striking ‘‘(1) The Secretary’’ and 
inserting the ‘‘The Secretary’’; and 
(B) by striking paragraph (2). 
(b) AIRPORTS NOT RECEIVING SUFFICIENT SERV-
ICE.—Section 41743(c) is amended—
(1) by striking paragraph (3); 
(2) by redesignating paragraphs (4) and (5) as 
paragraphs (3) and (4), respectively; and 
(3) in paragraph (4) (as so redesignated)—
(A) by striking ‘‘and’’ at the end of sub-
paragraph (C); 
(B) by striking the period at the end of 
subparagraph (D) and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(E) the assistance can be used in the fis-
cal year in which it is received.’’.
(c) ESSENTIAL AIR SERVICE AUTHORIZATION.—Sec-
tion 41742 is amended—
(1) in subsection (a)(1) by striking ‘‘otherwise 
provided to the Administration, the sum ’’ and in-
serting ‘‘any amounts in the Treasury,’’; 
(2) 
in 
subsection 
(a)(2) 
by 
striking 
‘‘$15,000,000’’ and inserting ‘‘$65,000,000’’; 
(3) by adding at the end of subsection (a) the 
following: 
‘‘(3) AUTHORIZATION
FOR
ADDITIONAL 
EMPLOYEES.—In addition to amounts author-
ized under paragraphs (1) and (2), there is au-
thorized to be appropriated such sums as may 
be necessary for the Secretary of Transpor-
tation to hire and employ 4 additional employ-
ees for the office responsible for carrying out 
the essential air service program.’’; and 
(4) by striking subsection (c). 
(d) PROCESS FOR DISCONTINUING CERTAIN SUB-
SIDIES.—Section 41734 is amended by adding at the end 
the following: 
‘‘(f) 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), the Sec-
retary shall notify the affected community that the subsidy 
will cease but shall continue to provide the subsidy for 90 
days after providing the notice to the community.’’. 
(e) JOINT PROPOSALS.—Section 41740 is amended 
by inserting ‘‘, including joint fares,’’ after ‘‘joint pro-
posals’’. 
(f) 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.—
‘‘(1) ELIGIBLE PLACES.—An eligible place for 
which compensation is received under the program 
in a fiscal year shall not be eligible to receive in that
fiscal year the essential air service that it would oth-
erwise be entitled to under this subchapter. 
‘‘(2) GOVERNMENTAL
ENTITIES.—A unit of 
local government or State receiving compensation for 
an eligible place under the program in a fiscal year 
shall not be required to pay the 10 percent local 
share described in 41737(a)(3) in such fiscal year. 
‘‘(g) SUBSEQUENT PARTICIPATION.—A unit of local 
government participating in the program under this 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.’’.
SEC. 414. PROTECTION OF EMPLOYEES PROVIDING AIR 
SAFETY INFORMATION. 
Section 42121 is amended—
(1) by redesignating subsection (e) as sub-
section (f); and
(2) by inserting after subsection (d) the fol-
lowing: 
‘‘(e) ACTION IN DISTRICT COURT.—If the Secretary 
has not issued a final order within the time period estab-
lished by subsection (b)(3) with respect to a complaint and 
there is no showing that the delay is due to the bad faith 
of the complainant, the complainant may bring an action 
at law or equity for de novo review of the complaint in 
the appropriate district court of the United States. The 
district court shall have jurisdiction over the action with-
out regard to the amount in controversy. The action shall 
be subject to the standards of proof provided in subsection 
(b)(2)(B).’’.
SEC. 415. 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. 416. 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 3 years after the 
date of enactment of this Act, the Administrator of 
the Federal Aviation Administration shall transmit
to the Committee on Commerce, Science, and Trans-
portation of the Senate and the Committee on 
Transportation and Infrastructure of the House of 
Representatives a plan for the development and 
oversight of a system for certification of design orga-
nizations to certify compliance with the requirements 
and minimum standards prescribed under section 
44701(a) of title 49, United States Code, for the 
type certification of aircraft, aircraft engines, propel-
lers, or appliances. 
(2) 
ISSUANCE
OF
CERTIFICATES.—Section 
44704 is further amended by adding at the end the 
following: 
‘‘(f) DESIGN ORGANIZATION CERTIFICATES.—
‘‘(1) ISSUANCE.—Beginning 7 years after the 
date of enactment of this subsection, the 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. 
417. 
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. 418. 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. 419. 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 cost not to exceed the 
cost of preparation and distribution. 
‘‘(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 maintenance manuals, overhaul 
manuals, standard practice manuals, and other man-
ufacturer’s service information that sets forth the 
methods, techniques, and practices for performing 
maintenance on civil aircraft, aircraft engines, pro-
pellers, appliances or any part installed thereon. The 
term also includes changes to such manuals and in-
formation in the form of revisions, service bulletins, 
service letters, or similar documents. 
‘‘(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 require design approval holders that 
prepared instructions for continued airworthiness or 
maintenance manuals before January 29, 1981, to 
make the manuals available (including any changes
thereto), to any person required by parts 1 through 
199 of title 14, Code of Federal Regulations, to 
comply with any of the terms of those manuals. 
‘‘(4) To require design approval holders that—
‘‘(A) are operating an ongoing business 
concern; 
‘‘(B) were required to produce mainte-
nance manuals or instructions for continued 
airworthiness under the applicable sections of 
parts 1 through 199 of title 14, Code of Fed-
eral Regulations; and 
‘‘(C) have not done so, 
to prepare those documents and make them available 
as required by this section not later than 1 year 
after date on which the regulations are published. 
‘‘(d) LIMITATION ON STATUTORY CONSTRUCTION.—
Nothing is this section shall be construed as requiring the 
holder of a design approval to make available proprietary 
information unless it is deemed essential to continued 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. 420. FLIGHT ATTENDANT CERTIFICATION. 
(a) IN GENERAL.—Chapter 447 is further amended 
by adding at the end the following: 
‘‘§ 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. 
‘‘(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 training and subsequent certifi-
cation 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 
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 air carrier that 
employs or will employ the certificate holder on the 
date that the certificate is issued; 
‘‘(4) is similar in size and appearance to certifi-
cates issued to airmen; 
‘‘(5) contain the airplane group for which the 
certificate is issued; and
SEC. 421. 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.’’. 
(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. 422. 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). 
SEC. 423. 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 
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. 424. 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. 
(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. 425. 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-
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 contaminants to which pas-
sengers and crew were exposed. 
(c) REPORT.—Not later than 30 months after the 
date of enactment of this Act, the Administrator shall 
transmit to Congress a report on the findings of the Ad-
ministrator under this section. 
SEC. 
426. 
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. 
(b) CONSULTATION.—In preparing this report, the 
Secretary shall consult with representatives from the air-
line and travel agent industry. 
SEC. 427. 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 
Congress on the methods looked at by the task force for 
ensuring the transfer of applications described in sub-
section (a).
SEC. 428. 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 Notice to Air-
men FDC 2/0199 and section 352 of the Depart-
ment of Transportation and Related Agencies Ap-
propriations Act, 2003 (P.L. 108–7, Division 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;
100
(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
101
$100,000,000. Such sums shall remain available until ex-
pended. 
SEC. 429. 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
102
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. 430. 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
103
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.
104
(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.
105
SEC. 431. 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) CONTRACT TOWER PROGRAM.—Subsection (a) 
shall not apply to the contract tower program authorized 
by section 47124 of title 49, United States Code. 
SEC. 432. 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; 
(3) military service, especially in the current 
war against terrorism, often requires members of the 
Armed Forces to be separated from their families on
106
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.
TITLE V—AIRPORT 
DEVELOPMENT 
SEC. 501. DEFINITIONS. 
(a) IN GENERAL.—Section 47102 is amended—
107
(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 
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:
108
‘‘(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).’’. 
(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
109
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) or 47114(d)(3)(A).’’. 
(b) 
CONFORMING
AMENDMENT.—Section 
47110(b)(2) is amended—
(1) in subparagraph (D) by striking ‘‘, 
47102(3)(K), or 47102(3)(L)’’; and 
(2) by aligning the margin of subparagraph (D) 
with the margin of subparagraph (B). 
SEC. 504. WITHHOLDING OF PROGRAM APPLICATION AP-
PROVAL. 
Section 47106(d) is amended—
110
(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. 
(a) APPROVAL OF PROJECT GRANT APPLICATIONS.—
Section 47106 is amended by adding at the end the fol-
lowing: 
‘‘(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, 
to the maximum extent practical, improvement of the run-
way’s safety area to meet the standards of the Federal 
Aviation Administration.’’.
111
SEC. 506. DISPOSITION OF LAND ACQUIRED FOR NOISE 
COMPATIBILITY PURPOSES. 
Section 47107(c) is amended by adding at the end 
the following: 
‘‘(4) Notwithstanding paragraph (2)(A)(iii), an air-
port owner or operator may retain all or any portion of 
the proceeds from a land disposition described in that 
paragraph if the Secretary finds that the use of the land 
will be compatible with airport purposes and the proceeds 
retained will be used for airport development or to carry 
out a noise compatibility program under section 
47504(c).’’. 
SEC. 507. GRANT ASSURANCES. 
(a) HANGAR CONSTRUCTION.—Section 47107(a) is 
amended—
(1) by striking ‘‘and’’ at the end of paragraph 
(19); 
(2) by striking the period at the end of 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)
112
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’’; and 
(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-
113
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(c) 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:
114
‘‘(iv) $.65 for each of the next 500,000 
passenger boardings at the airport during the 
prior calendar year; 
‘‘(v) $.50 cents for each of the next 
2,500,000 passenger boardings at the airport 
during the prior calendar year; and 
‘‘(vi) $.45 cents for each additional pas-
senger boarding at the airport during the prior 
calendar year.’’. 
(b) SPECIAL RULE FOR FISCAL YEAR 2004.—Sec-
tion 47114(c)(1) is amended by adding at the end the fol-
lowing: 
‘‘(F) SPECIAL
RULE
FOR
FISCAL
YEAR 
2004.—Notwithstanding subparagraph (A) and 
the absence of scheduled passenger aircraft 
service at an airport, the Secretary may appor-
tion in fiscal year 2004 to the sponsor of the 
airport an amount equal to the amount appor-
tioned to that sponsor in fiscal year 2002 or 
2003, whichever amount is greater, if the Sec-
retary finds that—
‘‘(i) the passenger boardings at the 
airport were below 10,000 in calendar year 
2002;
115
‘‘(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—
116
‘‘(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-
117
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) of this title is available for grants 
for any public-use airport of the sponsor included in 
the national plan of integrated airport systems. 
‘‘(2) 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
118
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-
119
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) 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; 
(2) by striking ‘‘of this title’’ the second place 
it appears and inserting ‘‘, for noise mitigation 
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-
120
scribed in section 47102(3)(K) or 47102(3)(L) to 
comply with the Clean Air Act (42 U.S.C. 7401 et 
seq.)’’. 
(b) ELIMINATION
OF
SUPER
RELIEVER
SET-
ASIDE.—Section 47117(e)(1)(C) is repealed. 
(c) RECOVERED FUNDS.—Section 47117 is further 
amended by adding at the end the following: 
‘‘(h) TREATMENT
OF
CANCELED
OR
REDUCED 
GRANT OBLIGATIONS.—For the purpose of determining 
compliance with a limitation, enacted in an appropriations 
Act, on the amount of grant obligations of funds made 
available by section 48103 that may be incurred in a fiscal 
year, an amount that is recovered by canceling or reducing 
a grant obligation of funds made available by section 
48103 shall be treated as a negative obligation that is to 
be netted against the obligation limitation as enacted and 
thus may permit the obligation limitation to be exceeded 
by an equal amount.’’. 
SEC. 514. MILITARY AIRPORT PROGRAM. 
Subsections (e) and (f) of section 47118 are each 
amended 
by 
striking 
‘‘$7,000,000’’ 
and 
inserting 
‘‘$10,000,000’’. 
SEC. 515. CONTRACT TOWERS. 
Section 47124(b) is amended—
121
(1) in paragraph (1) by striking ‘‘December 30, 
1987,’’ and inserting ‘‘on date of enactment of the 
Flight 100—Century of Aviation Reauthorization 
Act’’; 
(2) in the heading for paragraph (3) by striking 
‘‘PILOT’’; 
(3) 
in 
paragraph 
(4)(C) 
by 
striking 
‘‘$1,100,000’’ and inserting ‘‘$1,500,000’’; and 
(4) by striking ‘‘pilot’’ each place it appears. 
SEC. 516. 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 
under this section, the United States Government’s share 
of the cost of the data collection shall be 100 percent.’’. 
SEC. 517. AIRPORT PRIVATIZATION PILOT PROGRAM. 
Section 47134(b)(1) is amended—
(1) in subparagraph (A) by striking clauses (i) 
and (ii) and inserting the following:
122
‘‘(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 the users of that airport, as de-
termined by the Secretary.’’; 
(2) by redesignating subparagraph (B) as sub-
paragraph (C); and 
(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
123
days of the service of the application upon that 
air carrier, whichever is later.’’. 
SEC. 518. INNOVATIVE FINANCING TECHNIQUES. 
(a) ELIGIBLE
PROJECTS.—Section 47135(a) is 
amended—
(1) in the first sentence by striking ‘‘20’’ and 
inserting ‘‘10’’; and 
(2) by striking the second sentence and insert-
ing the following: ‘‘Such projects shall be located at 
airports that are not medium or large hub air-
ports.’’. 
(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; and 
(4) in subparagraph (B) (as so redesignated) by 
striking the period at the end and inserting ‘‘; and’’. 
SEC. 519. AIRPORT SECURITY PROGRAM. 
Section 47137 is amended—
(1) by redesignating subsections (e) and (f) as 
subsections (f) and (g), respectively; and
124
(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. 520. 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: 
‘‘(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
125
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 
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.
126
‘‘(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 
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
127
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 
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 owned by and located 
at the airport, is used to support aeronautical and related
128
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. 
‘‘(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
129
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 that is not described in 
section 47102(3) and that include low-emission tech-
nology, if the total cost allowed for the project are 
not more than the incremental cost of equipping 
such vehicles or equipment with low-emission tech-
nology, as determined by the Secretary.’’. 
(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:
130
‘‘(11) ‘low-emission technology’ means technology for 
vehicles and equipment whose emission performance is the 
best achievable under emission standards established by 
the Environmental Protection Agency and that relies ex-
clusively on alternative fuels that are substantially non-
petroleum based, as defined by the Department of Energy, 
but not excluding hybrid systems or natural gas powered 
vehicles.’’. 
(f) CONFORMING AMENDMENTS.—The analysis of 
subchapter I of chapter 471 is amended by adding at the 
end the following:
‘‘47138. Emission credits for air quality projects. 
‘‘47139. Airport ground support equipment emissions retrofit pilot program.’’.
SEC. 
521. 
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
131
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-
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.
132
‘‘(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-
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
133
‘‘(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. 
‘‘(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.
134
‘‘(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. 522. 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.