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(c) SAVINGS CLAUSE.—The amendments made by 
this section shall not affect applications approved under 
section 47135 of title 49, United States Code, before the 
date of enactment of this Act. 
SEC. 520. AIRPORT SECURITY PROGRAM. 
Section 47137 is amended—
(1) by redesignating subsections (e) and (f) as 
subsections (f) and (g), respectively; and 
(2) by inserting after subsection (d) the fol-
lowing: 
‘‘(e) ADMINISTRATION.—The Secretary, in coopera-
tion with the Secretary of Homeland Security, shall ad-
minister the program authorized by this section.’’. 
SEC. 521. LOW-EMISSION AIRPORT VEHICLES AND INFRA-
STRUCTURE. 
(a) EMISSIONS CREDITS.—Subchapter I of chapter 
471 is amended by adding at the end the following: 
‘‘§ 47138. Emission credits for air quality projects 
‘‘(a) IN GENERAL.—The Secretary of Transportation 
and the Administrator of the Environmental Protection 
Agency shall jointly agree on how to assure that airport 
sponsors receive appropriate emission credits for carrying 
out projects described in sections 40117(a)(3)(G), 
47102(3)(K), and 47102(3)(L). Such agreement must in-
clude, at a minimum, the following conditions:
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‘‘(1) The provision of credits is consistent with 
the Clean Air Act (42 U.S.C. 7402 et seq.). 
‘‘(2) Credits generated by the emissions reduc-
tions are kept by the airport sponsor and may only 
be used for purposes of any current or future gen-
eral conformity determination under the Clean Air 
Act or as offsets under the Environmental Protec-
tion Agency’s new source review program for 
projects on the airport or associated with the air-
port. 
‘‘(3) Credits are calculated and provided to air-
ports on a consistent basis nationwide. 
‘‘(4) Credits are provided to airport sponsors in 
a timely manner. 
‘‘(5) The establishment of a method to assure 
the Secretary that, for any specific airport project 
for which funding is being requested, the appro-
priate credits will be granted. 
‘‘(b) ASSURANCE OF RECEIPT OF CREDITS.—
‘‘(1) IN GENERAL.—As a condition for making 
a grant for 
a 
project 
described 
in 
section 
47102(3)(K), 47102(3)(L), or 47139 or as a condi-
tion for granting approval to collect or use a pas-
senger facility fee for a project described in section 
40117(a)(3)(G), 
47102(3)(K), 
47102(3)(L), 
or
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47139, the Secretary must receive assurance from 
the State in which the project is located, or from the 
Administrator of the Environmental Protection 
Agency where there is a Federal implementation 
plan, that the airport sponsor will receive appro-
priate emission credits in accordance with the condi-
tions of this section. 
‘‘(2) AGREEMENT ON PREVIOUSLY APPROVED 
PROJECTS.—The Secretary and the Administrator of 
the Environmental Protection Agency shall jointly 
agree on how to provide emission credits to airport 
projects previously approved under section 47136 
under terms consistent with the conditions enumer-
ated in this section.’’. 
(b) AIRPORT GROUND SUPPORT EQUIPMENT EMIS-
SIONS RETROFIT PILOT PROGRAM.—Subchapter I of 
chapter 471 is further amended by adding at the end the 
following: 
‘‘§ 47139. Airport ground support equipment emis-
sions retrofit pilot program 
‘‘(a) IN GENERAL.—The Secretary of Transportation 
shall carry out a pilot program at not more than 10 com-
mercial service airports under which the sponsors of such 
airports may use an amount made available under section 
48103 to retrofit existing eligible airport ground support
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equipment that burns conventional fuels to achieve lower 
emissions utilizing emission control technologies certified 
or verified by the Environmental Protection Agency. 
‘‘(b) LOCATION IN AIR QUALITY NONATTAINMENT 
OR MAINTENANCE AREAS.—A commercial service airport 
shall be eligible for participation in the pilot program only 
if the airport is located in an air quality nonattainment 
area (as defined in section 171(2) of the Clean Air Act 
(42 U.S.C. 7501(2)) or a maintenance area referred to 
in section 175A of such Act (42 U.S.C. 7505a). 
‘‘(c) SELECTION
CRITERIA.—In selecting from 
among applicants for participation in the pilot program, 
the Secretary shall give priority consideration to appli-
cants that will achieve the greatest air quality benefits 
measured by the amount of emissions reduced per dollar 
of funds expended under the pilot program. 
‘‘(d) MAXIMUM AMOUNT.—Not more than $500,000 
may be expended under the pilot program at any single 
commercial service airport. 
‘‘(e) GUIDELINES.—The Secretary, in consultation 
with the Administrator of the Environmental Protection 
Agency, shall establish guidelines regarding the types of 
retrofit projects eligible under the pilot program by consid-
ering remaining equipment useful life, amounts of emis-
sion reduction in relation to the cost of projects, and other
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factors necessary to carry out this section. The Secretary 
may give priority to ground support equipment owned by 
the airport and used for airport purposes. 
‘‘(f) ELIGIBLE EQUIPMENT DEFINED.—In this sec-
tion, the term ‘eligible equipment’ means ground service 
or maintenance equipment that is located at the airport, 
is used to support aeronautical and related activities at 
the airport, and will remain in operation at the airport 
for the life or useful life of the equipment, whichever is 
earlier.’’. 
(c) ADDITION TO AIRPORT DEVELOPMENT.—Section 
47102(3) is further amended by striking subparagraphs 
(K) and (L) and inserting the following: 
‘‘(K) work necessary to construct or mod-
ify airport facilities to provide low-emission fuel 
systems, gate electrification, and other related 
air quality improvements at a commercial serv-
ice airport if the airport is located in an air 
quality nonattainment or maintenance area (as 
defined in sections 171(2) and 175A of the 
Clean Air Act (42 U.S.C. 7501(2), 7505a) and 
if such project will result in an airport receiving 
appropriate emission credits, as described in 
section 47138.
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‘‘(L) converting vehicles and ground sup-
port equipment owned by a commercial service 
airport to low-emission technology or acquiring 
for use at a commercial service airport vehicles 
and ground support equipment that include 
low-emission technology if the airport is located 
in an air quality nonattainment area (as de-
fined in section 171(2) of the Clean Air Act (42 
U.S.C. 7501(2)) or a maintenance area referred 
to in section 175A of such Act (42 U.S.C. 
7505a) and if such project will result in an air-
port receiving appropriate emission credits as 
described in section 47138.’’. 
(d) ALLOWABLE PROJECT COST.—Section 47110(b) 
is further amended—
(1) by striking ‘‘and’’ at the end of paragraph 
(4); 
(2) by striking the period at the end of para-
graph (5) and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(6) in the case of a project for acquiring for 
use at a commercial service airport vehicles and 
ground support equipment owned by an airport that 
is not described in section 47102(3) and that include 
low-emission technology, if the total costs allowed for
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SEC. 
522. 
COMPATIBLE 
LAND 
USE 
PLANNING 
AND 
PROJECTS BY STATE AND LOCAL GOVERN-
MENTS. 
(a) IN GENERAL.—Subchapter I of chapter 471 is 
further amended by adding at the end the following: 
‘‘§ 47140. Compatible land use planning and projects 
by State and local governments 
‘‘(a) IN GENERAL.—The Secretary of Transportation 
may make grants from amounts set aside under section 
47117(e)(1)(A) to States and units of local government 
for land use compatibility plans or projects resulting from 
those plans for the purposes of making the use of land 
areas around large hub airports and medium hub airports 
compatible with aircraft operations if—
‘‘(1) the airport operator has not submitted a 
noise compatibility program to the Secretary under 
section 47504 or has not updated such program 
within the past 10 years; and 
‘‘(2) the land use plan meets the requirements 
of this section and any project resulting from the 
plan meets such requirements. 
‘‘(b) ELIGIBILITY.—In order to receive a grant under 
this section, a State or unit of local government must—
‘‘(1) have the authority to plan and adopt land 
use control measures, including zoning, in the plan-
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ning area in and around a large or medium hub air-
port; 
‘‘(2) provide written assurance to the Secretary 
that it will work with the affected airport to identify 
and adopt such measures; and 
‘‘(3) provide written assurance to the Secretary 
that it will achieve, to the maximum extent possible, 
compatible land uses consistent with Federal land 
use compatibility criteria under section 47502(3) 
and that those compatible land uses will be main-
tained. 
‘‘(c) ASSURANCES.—The Secretary shall require a 
State or unit of local government to which a grant may 
be awarded under this section for a land use plan or a 
project resulting from such a plan to provide—
‘‘(1) assurances satisfactory to the Secretary 
that the plan—
‘‘(A) is reasonably consistent with the goal 
of reducing existing noncompatible land uses 
and preventing the introduction of additional 
noncompatible land uses; 
‘‘(B) addresses ways to achieve and main-
tain compatible land uses, including zoning, 
building codes, and any other projects under 
section 47504(a)(2) that are within the author-
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ity of the State or unit of local government to 
implement; 
‘‘(C) uses noise contours provided by the 
airport operator that are consistent with the 
airport operation and planning, including any 
noise abatement measures adopted by the air-
port operator as part of its own noise mitiga-
tion efforts; 
‘‘(D) does not duplicate, and is not incon-
sistent with, the airport operator’s noise com-
patibility measures for the same area; and 
‘‘(E) has received concurrence by the air-
port operator prior to adoption by the State or 
unit of local government; and 
‘‘(2) such other assurances as the Secretary de-
termines to be necessary to carry out this section. 
‘‘(d) GUIDELINES.—The Secretary shall establish 
guidelines to administer this section in accordance with 
the purposes and conditions described in this section. The 
Secretary may require the State or unit of local govern-
ment to which a grant may be awarded under this section 
to provide progress reports and other information as the 
Secretary determines to be necessary to carry out this sec-
tion.
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‘‘(e) ELIGIBLE PROJECTS.—The Secretary may ap-
prove a grant under this section to a State or unit of local 
government for a land use compatibility project only if the 
Secretary is satisfied that the project is consistent with 
the guidelines established by the Secretary under this sec-
tion, that the State or unit of local government has pro-
vided the assurances required by this section, that the Sec-
retary has received evidence that the State or unit of local 
government has implemented (or has made provision to 
implement) those elements of the plan that are not eligible 
for Federal financial assistance, and that the project is 
not inconsistent with Federal standards. 
‘‘(f) SUNSET.—This section shall not be in effect 
after September 30, 2007.’’. 
(b) CONFORMING AMENDMENT.—The analysis of 
subchapter I of chapter 471 is further amended by adding 
at the end the following:
‘‘47140. Compatible land use planning and projects by State and local govern-
ments.’’.
SEC. 523. PROHIBITION ON REQUIRING AIRPORTS TO PRO-
VIDE RENT-FREE SPACE FOR FEDERAL AVIA-
TION ADMINISTRATION. 
(a) IN GENERAL.—Subchapter I of chapter 471 is 
further amended by adding at the end the following:
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‘‘§ 47141. Prohibition on rent-free space requirements 
for Federal Aviation Administration 
‘‘(a) IN GENERAL.—The Secretary of Transportation 
may not require an airport sponsor to provide to the Fed-
eral Aviation Administration, without compensation, space 
in a building owned by the sponsor and costs associated 
with such space for building construction, maintenance, 
utilities, and other expenses. 
‘‘(b) NEGOTIATED AGREEMENTS.—Subsection (a) 
does not prohibit—
‘‘(1) the negotiation of agreements between the 
Secretary and an airport sponsor to provide building 
construction, maintenance, utilities and expenses, or 
space in airport sponsor-owned buildings to the Fed-
eral Aviation Administration without cost or at 
below-market rates; or 
‘‘(2) the Secretary of Transportation from re-
quiring airport sponsors to provide land without cost 
to the Federal Aviation Administration for air traffic 
control facilities.’’. 
(b) CONFORMING AMENDMENT.—The analysis for 
subchapter I of chapter 471 is further amended by adding 
at the end the following:
‘‘47141. Prohibition on rent-free space requirements for Federal Aviation Ad-
ministration.’’.
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SEC. 524. MIDWAY ISLAND AIRPORT. 
(a) FINDINGS.—Congress finds that the continued 
operation of the Midway Island Airport in accordance with 
the standards of the Federal Aviation Administration ap-
plicable to commercial airports is critical to the safety of 
commercial, military, and general aviation in the mid-Pa-
cific Ocean region. 
(b) MEMORANDUM OF UNDERSTANDING ON SALE OF 
AIRCRAFT FUEL.—The Secretary of Transportation shall 
enter into a memorandum of understanding with the Sec-
retaries of Defense, Interior, and Homeland Security to 
facilitate the sale of aircraft fuel on Midway Island at a 
price that will generate sufficient revenue to improve the 
ability of the airport to operate on a self-sustaining basis 
in accordance with the standards of the Federal Aviation 
Administration applicable to commercial airports. The 
memorandum shall also address the long-range potential 
of promoting tourism as a means to generate revenue to 
operate the airport. 
(c) TRANSFER OF NAVIGATION AIDS AT MIDWAY IS-
LAND AIRPORT.—The Midway Island Airport may trans-
fer, without consideration, to the Administrator the navi-
gation aids at the airport. The Administrator shall accept 
the navigation aids and operate and maintain the naviga-
tion aids under criteria of the Administrator.
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(d) FUNDING TO THE SECRETARY OF INTERIOR FOR 
MIDWAY ISLAND AIRPORT.—
(1) IN GENERAL.—Chapter 481 is amended by 
adding at the end the following: 
‘‘§ 48114. Funding to the Secretary of Interior for 
Midway Island Airport 
‘‘The following amounts shall be available (and shall 
remain available until expended) to the Secretary of Inte-
rior, out of the Airport and Airway Trust Fund estab-
lished under section 9502 of the Internal Revenue Code 
of 1986 (26 U.S.C. 9502), for airport capital projects at 
the Midway Island Airport: 
‘‘(1) $750,000 for fiscal year 2004. 
‘‘(2) $2,500,000 for fiscal year 2005. 
‘‘(3) $1,000,000 for fiscal year 2006. 
‘‘(4) $1,000,000 for fiscal year 2007.’’. 
(2) CONFORMING AMENDMENT.—The analysis 
for chapter 481 is amended by adding at the end the 
following:
‘‘48114. Funding to the Secretary of Interior for Midway Island Airport.’’.
SEC. 525. INTERMODAL PLANNING. 
Section 47106(c)(1)(A) is amended—
(1) by striking ‘‘and’’ at the end of clause (i); 
(2) by adding ‘‘and’’ at the end of clause (ii); 
and 
(3) by adding at the end the following: