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‘‘(29) ‘air traffic controller’ or ‘controller’ 
means—
‘‘(A) a controller within the meaning of 
section 2109(1); and 
‘‘(B) a civilian employee of the Depart-
ment of Transportation or the Department of 
Defense holding a supervisory, managerial, ex-
ecutive, technical, semiprofessional, or profes-
sional position for which experience as a con-
troller (within the meaning of section 2109(1)) 
is a prerequisite.’’. 
(b) FEDERAL EMPLOYEES’ RETIREMENT SYSTEM.—
Section 8401 of title 5, United States Code, is amended—
(1) by striking ‘‘and’’ at the end of paragraph 
(33); 
(2) by striking the period at the end of para-
graph (34) and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(35) ‘air traffic controller’ or ‘controller’ 
means—
‘‘(A) a controller within the meaning of 
section 2109(1); and 
‘‘(B) a civilian employee of the Depart-
ment of Transportation or the Department of 
Defense holding a supervisory, managerial, ex-
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ecutive, technical, semiprofessional, or profes-
sional position for which experience as a con-
troller (within the meaning of section 2109(1)) 
is a prerequisite.’’. 
(c) MANDATORY SEPARATION TREATMENT NOT AF-
FECTED.—
(1) CIVIL SERVICE RETIREMENT SYSTEM.—Sec-
tion 8335(a) of title 5, United States Code, is 
amended by adding at the end the following: ‘‘For 
purposes of this subsection, the term ‘air traffic con-
troller’ or ‘controller’ has the meaning given to it 
under section 8331(29)(A).’’. 
(2) FEDERAL EMPLOYEES’ RETIREMENT SYS-
TEM.—Section 8425(a) of title 5, United States 
Code, is amended by adding at the end the fol-
lowing: ‘‘For purposes of this subsection, the term 
‘air traffic controller’ or ‘controller’ has the meaning 
given to it under section 8401(35)(A).’’. 
(d) EFFECTIVE DATE.—This section and the amend-
ments made by this section—
(1) shall take effect on the 60th day after the 
date of enactment of this Act; and 
(2) shall apply with respect to—
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(A) any annuity entitlement to which is 
based on an individual’s separation from service 
occurring on or after that 60th day; and 
(B) any service performed by any such in-
dividual before, on, or after that 60th day, sub-
ject to subsection (e). 
(e) DEPOSIT REQUIRED FOR CERTAIN PRIOR SERV-
ICE TO BE CREDITABLE AS CONTROLLER SERVICE.—
(1) DEPOSIT REQUIREMENT.—For purposes of 
determining eligibility for immediate retirement 
under section 8412(e) of title 5, United States Code, 
the amendment made by subsection (b) shall, with 
respect to any service described in paragraph (2), be 
disregarded unless there is deposited into the Civil 
Service Retirement and Disability Fund, with re-
spect to such service, in such time, form, and man-
ner as the Office of Personnel Management by regu-
lation requires, an amount equal to the amount by 
which—
(A) the deductions from pay which would 
have been required for such service if the 
amendments made by this section had been in 
effect when such service was performed, exceeds
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(B) the unrefunded deductions or deposits 
actually made under subchapter II of chapter 
84 of such title 5 with respect to such service. 
The amount under the preceding sentence shall in-
clude interest, computed under paragraphs (2) and 
(3) of section 8334(e) of such title 5. 
(2) PRIOR
SERVICE
DESCRIBED.—This sub-
section applies with respect to any service performed 
by an individual, before the 60th day following the 
date of enactment of this Act, as an employee de-
scribed in section 8401(35)(B) of such title 5 (as set 
forth in subsection (b)). 
SEC. 439. JUSTIFICATION FOR AIR DEFENSE IDENTIFICA-
TION ZONE. 
(a) IN GENERAL.—If the Administrator of the Fed-
eral Aviation Administration establishes an Air Defense 
Identification Zone (in this section referred as an 
‘‘ADIZ’’), the Administrator shall transmit, not later than 
60 days after the date of establishing the ADIZ, to the 
Committee on Transportation and Infrastructure of the 
House of Representatives and the Committee on Com-
merce, Science, and Transportation of the Senate a report 
containing an explanation of the need for the ADIZ. The 
Administrator also shall transmit to the Committees up-
dates of the report every 60 days until the ADIZ is re-
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scinded. The reports and updates shall be transmitted in 
classified form. 
(b) EXISTING ADIZ.—If an ADIZ is in effect on the 
date of enactment of this Act, the Administrator shall 
transmit an initial report under subsection (a) not later 
than 30 days after such date of enactment. 
(c) DESCRIPTION OF CHANGES TO IMPROVE OPER-
ATIONS.—A report transmitted by the Administrator 
under this section shall include a description of any 
changes in procedures or requirements that could improve 
operational efficiency or minimize operational impacts of 
the ADIZ on pilots and controllers. This portion of the 
report may be transmitted in classified or unclassified 
form. 
(d) DEFINITION.—In this section, the terms ‘‘Air De-
fense Identification Zone’’ and ‘‘ADIZ’’ each mean a zone 
established by the Administrator with respect to airspace 
under 18,000 feet in approximately a 15- to 38-mile ra-
dius around Washington, District of Columbia, for which 
security measures are extended beyond the existing 15-
mile no-fly zone around Washington and in which general 
aviation aircraft are required to adhere to certain proce-
dures issued by the Administrator.
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SEC. 440. INTERNATIONAL AIR TRANSPORTATION. 
It is the sense of Congress that, in an effort to mod-
ernize its regulations, the Department of Transportation 
should formally define ‘‘Fifth Freedom’’ and ‘‘Seventh 
Freedom’’ consistently for both scheduled and charter pas-
senger and cargo traffic. 
SEC. 441. REIMBURSEMENT OF AIR CARRIERS FOR CER-
TAIN SCREENING AND RELATED ACTIVITIES. 
The Secretary of Transportation, subject to the avail-
ability of funds (other than amounts in the Aviation Trust 
Fund) provided for this purpose, shall reimburse air car-
riers and airports for the following: 
(1) All screening and related activities that the 
air carriers or airports are still performing or con-
tinuing to be responsible for, including—
(A) the screening of catering supplies; 
(B) checking documents at security check-
points; 
(C) screening of passengers; and 
(D) screening of persons with access to 
aircraft. 
(2) The provision of space and facilities used to 
perform screening functions if such space and facili-
ties have been previously used, or were intended to 
be used, for revenue-producing purposes.
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SEC. 
442. 
GENERAL 
AVIATION 
FLIGHTS 
AT 
RONALD 
REAGAN WASHINGTON NATIONAL AIRPORT. 
It is the sense of Congress that Ronald Reagan 
Washington National Airport should be open to general 
aviation flights as soon as possible. 
SEC. 443. CHARTER AIRLINES. 
(a) IN GENERAL.—Section 41104(b)(1) is amend-
ed—
(1) by striking ‘‘paragraph (3)’’ and inserting 
‘‘paragraphs (3) and (4)’’; 
(2) by inserting a comma after ‘‘regularly 
scheduled charter air transportation’’; and 
(3) by striking ‘‘flight unless such air transpor-
tation’’ and all that follows through the period at 
the end and inserting the following: ‘‘flight, to or 
from an airport that—
‘‘(A) does not have an airport operating 
certificate issued under part 139 of title 14, 
Code of Federal Regulations (or any subsequent 
similar regulation); or 
‘‘(B) has an airport operating certificate 
issued under part 139 of title 14, Code of Fed-
eral Regulations (or any subsequent similar reg-
ulation) if the airport—
‘‘(i) is a reliever airport (as defined in 
section 47102) and is designated as such
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in the national plan of integrated airports 
maintained under section 47103; and 
‘‘(ii) is located within 20 nautical 
miles (22 statute miles) of 3 or more air-
ports that annually account for at least 1 
percent of the total United States pas-
senger enplanements and at least 2 of 
which are operated by the sponsor of the 
reliever airport.’’. 
(b) WAIVERS.—Section 41104(b) is amended by add-
ing at the end the following: 
‘‘(4) WAIVERS.—The Secretary may waive the 
application of paragraph (1)(B) in cases in which 
the Secretary determines that the public interest so 
requires.’’. 
SEC. 444. IMPLEMENTATION OF CHAPTER 4 NOISE STAND-
ARDS. 
Not later than July 1, 2004, the Secretary of Trans-
portation shall issue regulations to implement Chapter 4 
noise standards, consistent with the recommendations 
adopted by the International Civil Aviation Organization. 
SEC. 445. CREW TRAINING. 
Section 44918 is amended to read as follows: 
‘‘§ 44918. Crew training 
‘‘(a) BASIC SECURITY TRAINING.—
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‘‘(1) IN GENERAL.—Each air carrier providing 
scheduled passenger air transportation shall carry 
out a training program for flight and cabin crew 
members to prepare the crew members for potential 
threat conditions. 
‘‘(2) PROGRAM
ELEMENTS.—An air carrier 
training program under this subsection shall include, 
at a minimum, elements that address each of the fol-
lowing: 
‘‘(A) Recognizing suspicious activities and 
determining the seriousness of any occurrence. 
‘‘(B) Crew communication and coordina-
tion. 
‘‘(C) The proper commands to give pas-
sengers and attackers. 
‘‘(D) Appropriate responses to defend one-
self. 
‘‘(E) Use of protective devices assigned to 
crew members (to the extent such devices are 
required by the Administrator of the Federal 
Aviation Administration or the Under Secretary 
for Border and Transportation Security of the 
Department of Homeland Security). 
‘‘(F) Psychology of terrorists to cope with 
hijacker behavior and passenger responses.
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‘‘(G) Situational training exercises regard-
ing various threat conditions. 
‘‘(H) Flight deck procedures or aircraft 
maneuvers to defend the aircraft and cabin 
crew responses to such procedures and maneu-
vers. 
‘‘(I) The proper conduct of a cabin search. 
‘‘(J) Any other subject matter considered 
appropriate by the Under Secretary. 
‘‘(3) APPROVAL.—An air carrier training pro-
gram under this subsection shall be subject to ap-
proval by the Under Secretary. 
‘‘(4) MINIMUM
STANDARDS.—Not later than 
one year after the date of enactment of the Flight 
100—Century of Aviation Reauthorization Act, the 
Under Secretary shall establish minimum standards 
for the training provided under this subsection and 
for recurrent training. 
‘‘(5) EXISTING
PROGRAMS.—Notwithstanding 
paragraph (3), any training program of an air car-
rier to prepare flight and cabin crew members for 
potential threat conditions that was approved by the 
Administrator or the Under Secretary before the 
date of enactment of the Flight 100—Century of 
Aviation Reauthorization Act may continue in effect
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until disapproved or ordered modified by the Under 
Secretary. 
‘‘(6) MONITORING.—The Under Secretary, in 
consultation with the Administrator, shall monitor 
air carrier training programs under this subsection 
and periodically shall review an air carrier’s training 
program to ensure that the program is adequately 
preparing crew members for potential threat condi-
tions. In determining when an air carrier’s training 
program should be reviewed under this paragraph, 
the Under Secretary shall consider complaints from 
crew members. The Under Secretary shall ensure 
that employees responsible for monitoring the train-
ing programs have the necessary resources and 
knowledge. 
‘‘(7) UPDATES.—The Under Secretary, in con-
sultation with the Administrator, shall order air car-
riers to modify training programs under this sub-
section to reflect new or different security threats. 
‘‘(b) ADVANCED SELF DEFENSE TRAINING.—
‘‘(1) IN GENERAL.—Not later than one year 
after the date of enactment of the Flight 100—Cen-
tury of Aviation Reauthorization Act, the Under 
Secretary shall develop and provide a voluntary 
training program for flight and cabin crew members
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of air carriers providing scheduled passenger air 
transportation. 
‘‘(2) PROGRAM ELEMENTS.—The training pro-
gram under this subsection shall include both class-
room and effective hands-on training in the following 
elements of self-defense: 
‘‘(A) Deterring a passenger who might 
present a threat. 
‘‘(B) Advanced control, striking, and re-
straint techniques. 
‘‘(C) Training to defend oneself against 
edged or contact weapons. 
‘‘(D) Methods to subdue and restrain an 
attacker. 
‘‘(E) Use of available items aboard the air-
craft for self-defense. 
‘‘(F) Appropriate and effective responses 
to defend oneself, including the use of force 
against an attacker. 
‘‘(G) Explosive device recognition. 
‘‘(H) Any other element of training that 
the Under Secretary considers appropriate. 
‘‘(3) PARTICIPATION NOT REQUIRED.—A crew 
member shall not be required to participate in the 
training program under this subsection.
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‘‘(4) COMPENSATION.—Neither the Federal 
Government nor an air carrier shall be required to 
compensate a crew member for participating in the 
training program under this subsection. 
‘‘(5) FEES.—A crew member shall not be re-
quired to pay a fee for the training program under 
this subsection. 
‘‘(6) CONSULTATION.—In developing the train-
ing program under this subsection, the Under Sec-
retary shall consult with law enforcement personnel 
and security experts who have expertise in self-de-
fense training, terrorism experts, representatives of 
air carriers, the director of self-defense training in 
the Federal Air Marshals Service, flight attendants, 
labor organizations representing flight attendants, 
and educational institutions offering law enforce-
ment training programs. 
‘‘(7) DESIGNATION
OF
TSA
OFFICIAL.—The 
Under Secretary shall designate an official in the 
Transportation Security Administration to be re-
sponsible for implementing the training program 
under this subsection. The official shall consult with 
air carriers and labor organizations representing 
crew members before implementing the program to
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ensure that it is appropriate for situations that may 
arise on board an aircraft during a flight. 
‘‘(c) LIMITATION.—Actions by crew members under 
this section shall be subject to the provisions of section 
44903(k).’’. 
SEC. 446. REVIEW OF COMPENSATION CRITERIA. 
Not later than 6 months after the date of enactment 
of this Act, the Comptroller General shall review the cri-
teria used by the Air Transportation Stabilization Board 
to compensate air carriers following the terrorist attack 
of September 11, 2001, with a particular focus on whether 
it is appropriate to compensate air carriers for the de-
crease in value of their aircraft after September 11th. 
SEC. 447. REVIEW OF CERTAIN AIRCRAFT OPERATIONS IN 
ALASKA. 
Not later than 6 months after the date of enactment 
of this Act, the Administrator of the Federal Aviation Ad-
ministration shall report to Congress on whether, in light 
of the demands of business within Alaska, it would be ap-
propriate to permit an aircraft to be operated under part 
91 of title 14, Code of Federal Regulations, where com-
mon carriage is not involved but (1) the operator of the 
aircraft organizes an entity where the only purpose of such 
entity is to provide transportation by air of persons and 
property to related business entities, individuals, and em-
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ployees of such entities, and (2) the charge for such trans-
portation does not to exceed the cost of owning, operating, 
and maintaining the aircraft. 
TITLE V—AIRPORT 
DEVELOPMENT 
SEC. 501. DEFINITIONS. 
(a) IN GENERAL.—Section 47102 is amended—
(1) by redesignating paragraphs (19) and (20) 
as paragraphs (24) and (25), respectively; 
(2) by inserting after paragraph (18) the fol-
lowing: 
‘‘(23) ‘small hub airport’ means a commercial 
service airport that has at least 0.05 percent but less 
than 0.25 percent of the passenger boardings.’’; 
(3) in paragraph (10) by striking subpara-
graphs (A) and (B) and inserting following: 
‘‘(A) means, unless the context indicates 
otherwise, revenue passenger boardings in the 
United States in the prior calendar year on an 
aircraft in service in air commerce, as the Sec-
retary determines under regulations the Sec-
retary prescribes; and 
‘‘(B) includes passengers who continue on 
an aircraft in international flight that stops at
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an airport in the 48 contiguous States, Alaska, 
or Hawaii for a nontraffic purpose.’’; 
(4) by redesignating paragraphs (10) through 
(18) as paragraphs (14) through (22), respectively; 
(5) by inserting after paragraph (9) the fol-
lowing: 
‘‘(10) ‘large hub airport’ means a commercial 
service airport that has at least 1.0 percent of the 
passenger boardings. 
‘‘(12) ‘medium hub airport’ means a commer-
cial service airport that has at least 0.25 percent but 
less than 1.0 percent of the passenger boardings. 
‘‘(13) ‘nonhub airport’ means a commercial 
service airport that has less than 0.05 percent of the 
passenger boardings.’’; and 
(6) by striking paragraph (6) and inserting the 
following: 
‘‘(6) ‘amount made available under section 
48103’ or ‘amount newly made available’ means the 
amount authorized for grants under section 48103 
as that amount may be limited in that year by a 
subsequent law, but as determined without regard to 
grant obligation recoveries made in that year or 
amounts covered by section 47107(f).’’.
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(b) 
CONFORMING
AMENDMENT.—Section 
47116(b)(1) is amended by striking ‘‘(as defined in section 
41731 of this title)’’. 
SEC. 502. REPLACEMENT OF BAGGAGE CONVEYOR SYS-
TEMS. 
Section 47102(3)(B)(x) is amended by striking the 
period at the end and inserting the following: ‘‘; except 
that such activities shall be eligible for funding under this 
subchapter only using amounts apportioned under section 
47114.’’. 
SEC. 503. SECURITY COSTS AT SMALL AIRPORTS. 
(a) SECURITY
COSTS.—Section 47102(3)(J) is 
amended to read as follows: 
‘‘(J) in the case of a nonhub airport or an 
airport that is not a primary airport in fiscal 
year 2004, direct costs associated with new, ad-
ditional, or revised security requirements im-
posed on airport operators by law, regulation, 
or order on or after September 11, 2001, if the 
Government’s share is paid only from amounts 
apportioned 
to 
a 
sponsor 
under 
section 
47114(c), 47114(d)(3)(A), or 47114(e)’’. 
(b) 
CONFORMING
AMENDMENT.—Section 
47110(b)(2) is amended—
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(1) in subparagraph (D) by striking ‘‘, 
47102(3)(K), or 47102(3)(L)’’; and 
(2) by aligning the margin of subparagraph (D) 
with the margin of subparagraph (B). 
SEC. 504. WITHHOLDING OF PROGRAM APPLICATION AP-
PROVAL. 
Section 47106(d) is amended—
(1) in paragraph (1) by striking ‘‘section 
47114(c) and (e) of this title’’ and inserting ‘‘sub-
sections (c), (d), and (e) of section 47114’’; and 
(2) by adding at the end the following: 
‘‘(4) If the Secretary withholds a grant to an airport 
from the discretionary fund under section 47115 or from 
the small airport fund under section 47116 on the grounds 
that the sponsor has violated an assurance or requirement 
of this subchapter, the Secretary shall follow the proce-
dures of this subsection.’’. 
SEC. 505. RUNWAY SAFETY AREAS. 
Section 47106 is amended by adding at the end the 
following: 
‘‘(h) RUNWAY SAFETY AREAS.—The Secretary may 
approve an application under this chapter for a project 
grant to construct, reconstruct, repair, or improve a run-
way only if the Secretary receives written assurances, sat-
isfactory to the Secretary, that the sponsor will undertake,
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to the maximum extent practical, improvement of the run-
way’s safety area to meet the standards of the Federal 
Aviation Administration.’’. 
SEC. 506. DISPOSITION OF LAND ACQUIRED FOR NOISE 
COMPATIBILITY PURPOSES. 
Section 47107(c)(2)(A)(iii) is amended by inserting 
before the semicolon at the end the following: ‘‘, including 
the purchase of nonresidential buildings or property in the 
vicinity of residential buildings or property previously pur-
chased by the airport as part of a noise compatibility pro-
gram’’. 
SEC. 507. GRANT ASSURANCES. 
(a) HANGAR CONSTRUCTION.—Section 47107(a) is 
amended—
(1) by striking ‘‘and’’ at the end of paragraph 
(19); 
(2) by striking the period at the end of para-
graph (20) and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(21) if the airport owner or operator and a 
person who owns an aircraft agree that a hangar is 
to be constructed at the airport for the aircraft at 
the aircraft owner’s expense, the airport owner or 
operator will grant to the aircraft owner for the 
hangar a long-term lease (of not less than 50 years)
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that is subject to such terms and conditions on the 
hangar as the airport owner or operator may im-
pose.’’. 
(b) 
STATUTE
OF
LIMITATIONS..—Section 
47107(l)(5)(A) is amended by inserting ‘‘or any other gov-
ernmental entity’’ after ‘‘sponsor’’. 
(c) AUDIT CERTIFICATION.—Section 47107(m) is 
amended—
(1) in paragraph (1) by striking ‘‘promulgate 
regulations that’’ and inserting ‘‘include a provision 
in the compliance supplement provisions to’’; 
(2) in paragraph (1) by striking ‘‘and opinion 
of the review’’; and 
(3) by striking paragraph (3). 
SEC. 508. ALLOWABLE PROJECT COSTS. 
(a) CONSTRUCTION OR MODIFICATION OF PUBLIC 
PARKING FACILITIES FOR SECURITY PURPOSES.—Section 
47110 is amended—
(1) in subsection (f) by striking ‘‘subsection 
(d)’’ and inserting ‘‘subsections (d) and (h)’’; and 
(2) by adding at the end the following: 
‘‘(h) CONSTRUCTION OR MODIFICATION OF PUBLIC 
PARKING FACILITIES FOR SECURITY PURPOSES.—Not-
withstanding subsection (f)(1), a cost of constructing or 
modifying a public parking facility for passenger auto-
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mobiles to comply with a regulation or directive of the De-
partment of Homeland Security shall be treated as an al-
lowable airport development project cost.’’. 
(b) DEBT FINANCING.—Section 47110 is further 
amended by adding at the end the following: 
‘‘(i) DEBT FINANCING.—In the case of an airport 
that is not a medium hub airport or large hub airport, 
the Secretary may determine that allowable airport devel-
opment project costs include payments of interest, com-
mercial bond insurance, and other credit enhancement 
costs associated with a bond issue to finance the project.’’. 
(c) CLARIFICATION OF ALLOWABLE COSTS..—Sec-
tion 47110(b)(1) is amended by inserting before the semi-
colon at the end ‘‘and any cost of moving a Federal facility 
impeding the project if the rebuilt facility is of an equiva-
lent size and type’’. 
(d) TECHNICAL AMENDMENTS.—Section 47110(e) is 
amended by aligning the margin of paragraph (6) with 
the margin of paragraph (5). 
SEC. 509. APPORTIONMENTS TO PRIMARY AIRPORTS. 
(a) FORMULA CHANGES.—Section 47114(c)(1)(A) is 
amended by striking clauses (iv) and (v) and by inserting 
the following:
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‘‘(iv) $.65 for each of the next 
500,000 passenger boardings at the airport 
during the prior calendar year; 
‘‘(v) $.50 cents for each of the next 
2,500,000 passenger boardings at the air-
port during the prior calendar year; and 
‘‘(vi) $.45 cents for each additional 
passenger boarding at the airport during 
the prior calendar year.’’. 
(b) SPECIAL RULE FOR FISCAL YEARS 2004 AND 
2005.—Section 47114(c)(1) is amended by adding at the 
end the following: 
‘‘(F) SPECIAL
RULE
FOR
FISCAL
YEARS 
2004 AND 2005.—Notwithstanding subparagraph 
(A) and the absence of scheduled passenger air-
craft service at an airport, the Secretary may 
apportion in fiscal years 2004 and 2005 to the 
sponsor of the airport an amount equal to the 
amount apportioned to that sponsor in fiscal 
year 2002 or 2003, whichever amount is great-
er, if the Secretary finds that—
‘‘(i) the passenger boardings at the 
airport were below 10,000 in calendar year 
2002 or 2003;
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‘‘(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—
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‘‘(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-
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tained a higher score under the numerical pri-
ority system employed by the Secretary in ad-
ministering the fund; and 
‘‘(B) the sponsor will be able to commence 
the work identified in the project application in 
the fiscal year in which the grant is made or 
within 6 months after the grant is made, which-
ever is later.’’. 
SEC. 512. FLEXIBLE FUNDING FOR NONPRIMARY AIRPORT 
APPORTIONMENTS. 
(a) IN GENERAL.—Section 47117(c) is amended to 
read as follows: 
‘‘(c) USE OF SPONSOR’S APPORTIONED AMOUNTS AT 
PUBLIC USE AIRPORTS.—
‘‘(1) OF SPONSOR.—An amount apportioned to 
a sponsor of an airport under section 47114(c) or 
47114(d)(3)(A) is available for grants for any pub-
lic-use airport of the sponsor included in the na-
tional plan of integrated airport systems. 
‘‘(2) IN SAME STATE OR AREA.—A sponsor of 
an airport may make an agreement with the Sec-
retary of Transportation waiving the sponsor’s claim 
to any part of the amount apportioned for the air-
port under section 47114(c) or 47114(d)(3)(A) if 
the Secretary agrees to make the waived amount
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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-
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mines that the sponsor has made adequate provision for 
financing airside needs of the airport.’’. 
(d) TERMINAL
DEVELOPMENT
COSTS.—Section 
47119(b) is amended—
(1) by striking ‘‘or’’ at the end of paragraph 
(3); 
(2) by striking the period at the end of para-
graph (4) and inserting ‘‘; or’’; and 
(3) by adding at the end the following: 
‘‘(5) to a sponsor of a nonprimary airport, any 
part of amounts apportioned to the sponsor for the 
fiscal year under section 47114(d)(3)(A) for project 
costs allowable under section 47110(d).’’. 
SEC. 513. USE OF APPORTIONED AMOUNTS. 
(a) PERIOD OF AVAILABILITY.—Section 47117(b) is 
amended by striking ‘‘primary airport’’ and all that fol-
lows through ‘‘calendar year’’ and inserting ‘‘nonhub air-
port or any airport that is not a commercial service air-
port’’. 
(b) SPECIAL APPORTIONMENT CATEGORIES.—Sec-
tion 47117(e)(1)(A) is amended—
(1) by striking ‘‘of this title’’ the first place it 
appears and inserting a comma; and 
(2) by striking ‘‘of this title’’ the second place 
it appears and inserting ‘‘, for noise mitigation
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projects approved in an environmental record of de-
cision for an airport development project under this 
title, for compatible land use planning and projects 
carried out by State and local governments under 
section 47140, and for airport development de-
scribed in section 47102(3)(F) or 47102(3)(K) to 
comply with the Clean Air Act (42 U.S.C. 7401 et 
seq.)’’. 
(c) ELIMINATION
OF
SUPER
RELIEVER
SET-
ASIDE.—Section 47117(e)(1)(C) is repealed. 
(d) RECOVERED FUNDS.—Section 47117 is further 
amended by adding at the end the following: 
‘‘(h) TREATMENT
OF
CANCELED
OR
REDUCED 
GRANT OBLIGATIONS.—For the purpose of determining 
compliance with a limitation, enacted in an appropriations 
Act, on the amount of grant obligations of funds made 
available by section 48103 that may be incurred in a fiscal 
year, an amount that is recovered by canceling or reducing 
a grant obligation of funds made available by section 
48103 shall be treated as a negative obligation that is to 
be netted against the obligation limitation as enacted and 
thus may permit the obligation limitation to be exceeded 
by an equal amount.’’.
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SEC. 514. MILITARY AIRPORT PROGRAM. 
(a) INCREASED FUNDING LEVELS.—Subsections (e) 
and (f) of section 47118 are each amended by striking 
‘‘$7,000,000’’ and inserting ‘‘$10,000,000’’. 
(b) REIMBURSEMENT FOR CERTAIN CONSTRUCTION 
COSTS.—Section 47118(f) is amended—
(1) by striking ‘‘Not more than’’ and inserting 
the following: 
‘‘(1) CONSTRUCTION.—Not more than’’; and 
(2) by adding at the end the following: 
‘‘(2) REIMBURSEMENT.—Upon approval of the 
Secretary, the sponsor of a current or former mili-
tary airport the Secretary designates under this sec-
tion may use an amount apportioned under section 
47114, or made available under section 47119(b), to 
the airport for reimbursement of costs incurred by 
the airport in fiscal years 2003 and 2004 for con-
struction, improvement, or repair described in para-
graph (1).’’. 
SEC. 515. TERMINAL DEVELOPMENT COSTS. 
Section 47119(a) is amended to read as follows: 
‘‘(a) REPAYING BORROWED MONEY.—
‘‘(1) TERMINAL
DEVELOPMENT
COSTS
IN-
CURRED AFTER JUNE 30, 1970, AND BEFORE JULY 
12, 1976.—An amount apportioned under section 
47114 and made available to the sponsor of a com-
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mercial service airport at which terminal develop-
ment was carried out after June 30, 1970, and be-
fore July 12, 1976, is available to repay immediately 
money borrowed and used to pay the costs for such 
terminal development if those costs would be allow-
able project costs under section 47110(d) if they had 
been incurred after September 3, 1982. 
‘‘(2) TERMINAL
DEVELOPMENT
COSTS
IN-
CURRED BETWEEN JANUARY 1, 1992, AND OCTOBER 
31, 1992.—An amount apportioned under section 
47114 and made available to the sponsor of a 
nonhub airport at which terminal development was 
carried out between January 1, 1992, and October 
31, 1992, is available to repay immediately money 
borrowed and to pay the costs for such terminal de-
velopment if those costs would be allowable project 
costs under section 47110(d). 
‘‘(3) TERMINAL DEVELOPMENT COSTS AT PRI-
MARY
AIRPORTS.—An amount apportioned under 
section 47114 or available under subsection (b)(3) to 
a primary airport—
‘‘(A) that was a nonhub airport in the 
most recent year used to calculate apportion-
ments under section 47114;
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‘‘(B) that is a designated airport under 
section 47118 in fiscal year 2003; and 
‘‘(C) at which terminal development is car-
ried out between January 2003 and August 
2004, 
is available to repay immediately money borrowed 
and used to pay the costs for such terminal develop-
ment if those costs would be allowable project costs 
under section 47110(d). 
‘‘(4) CONDITIONS FOR GRANT.—An amount is 
available for a grant under this subsection only if—
‘‘(A) the sponsor submits the certification 
required under section 47110(d); 
‘‘(B) the Secretary of Transportation de-
cides that using the amount to repay the bor-
rowed money will not defer an airport develop-
ment project outside the terminal area at that 
airport; and 
‘‘(C) amounts available for airport develop-
ment under this subchapter will not be used for 
additional terminal development projects at the 
airport for at least 3 years beginning on the 
date the grant is used to repay the borrowed 
money.
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‘‘(5) APPLICABILITY
OF
CERTAIN
LIMITA-
TIONS.—A grant under this subsection shall be sub-
ject to the limitations in subsection (b)(1) and (2).’’. 
SEC. 516. CONTRACT TOWERS. 
Section 47124(b) is amended—
(1) in paragraph (1) by striking ‘‘on December 
30, 1987,’’ and inserting ‘‘on date of enactment of 
the Flight 100—Century of Aviation Reauthoriza-
tion Act’’; 
(2) in the heading for paragraph (3) by striking 
‘‘PILOT’’; 
(3) 
in 
paragraph 
(4)(C) 
by 
striking 
‘‘$1,100,000’’ and inserting ‘‘$1,500,000’’; and 
(4) by striking ‘‘pilot’’ each place it appears. 
SEC. 517. AIRPORT SAFETY DATA COLLECTION. 
Section 47130 is amended to read as follows: 
‘‘§ 47130. Airport safety data collection 
‘‘Notwithstanding any other provision of law, the Ad-
ministrator of the Federal Aviation Administration may 
award a contract, using sole source or limited source au-
thority, or enter into a cooperative agreement with, or pro-
vide a grant from amounts made available under section 
48103 to, a private company or entity for the collection 
of airport safety data. In the event that a grant is provided
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under this section, the United States Government’s share 
of the cost of the data collection shall be 100 percent.’’. 
SEC. 518. AIRPORT PRIVATIZATION PILOT PROGRAM. 
(a) IN GENERAL.—Section 47134(b)(1) is amend-
ed—
(1) in subparagraph (A) by striking clauses (i) 
and (ii) and inserting the following: 
‘‘(i) in the case of a primary airport, 
by at least 65 percent of the scheduled air 
carriers serving the airport and by sched-
uled and nonscheduled air carriers whose 
aircraft landing at the airport during the 
preceding calendar year, had a total landed 
weight during the preceding calendar year 
of at least 65 percent of the total landed 
weight of all aircraft landing at the airport 
during such year; or 
‘‘(ii) by the Secretary at any nonpri-
mary airport after the airport has con-
sulted with at least 65 percent of the own-
ers of aircraft based at that airport, as de-
termined by the Secretary.’’; 
(2) by redesignating subparagraph (B) as sub-
paragraph (C); and
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(3) by inserting after subparagraph (A) the fol-
lowing: 
‘‘(B) OBJECTION TO EXEMPTION.—An air 
carrier shall be deemed to have approved a 
sponsor’s application for an exemption under 
subparagraph (A) unless the air carrier has 
submitted an objection, in writing, to the spon-
sor within 60 days of the filing of the sponsor’s 
application with the Secretary, or within 60 
days of the service of the application upon that 
air carrier, whichever is later.’’. 
(b) FEDERAL SHARE.—Section 47109(a) is amend-
ed—
(1) by inserting ‘‘and’’ at the end of paragraph 
(3); 
(2) by striking paragraph (4); and 
(3) by redesignating paragraph (5) as para-
graph (4). 
SEC. 519. INNOVATIVE FINANCING TECHNIQUES. 
(a) ELIGIBLE
PROJECTS.—Section 47135(a) is 
amended—
(1) in the first sentence by inserting after ‘‘ap-
prove’’ the following: ‘‘after the date of enactment of 
the Flight 100—Century of Aviation Reauthoriza-
tion Act’’;
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(2) in the first sentence by striking ‘‘20’’ and 
inserting ‘‘12’’; and 
(3) by striking the second sentence and insert-
ing the following: ‘‘A project using an innovative fi-
nancing technique described in subsection (c)(2)(A) 
or (c)(2)(B) shall be located at an airport that is not 
a medium or large hub airport. A project using the 
innovative financing technique described in sub-
section (c)(2)(C) shall be located at an airport that 
is a medium or large hub airport.’’. 
(b) INNOVATIVE FINANCING TECHNIQUES.—Section 
47135(c)(2) is amended—
(1) by striking subparagraphs (A) and (B); 
(2) by redesignating subparagraphs (C) and 
(D) as subparagraphs (A) and (B), respectively; 
(3) in subparagraph (A) (as so redesignated) by 
striking ‘‘and’’ at the end; 
(4) in subparagraph (B) (as so redesignated) by 
striking the period at the end and inserting ‘‘; and’’; 
and 
(5) by adding at the end the following: 
‘‘(C) payment of interest on indebtedness 
incurred to carry out a project for airport devel-
opment.’’.
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the project are not more than the incremental cost 
of equipping such vehicles or equipment with low-
emission technology, as determined by the Sec-
retary.’’. 
(e) LOW-EMISSION TECHNOLOGY EQUIPMENT.—Sec-
tion 47102 (as amended by section 501 of this Act) is 
further amended by inserting after paragraph (10) the fol-
lowing: 
‘‘(11) ‘low-emission technology’ means tech-
nology for vehicles and equipment whose emission 
performance is the best achievable under emission 
standards established by the Environmental Protec-
tion Agency and that relies exclusively on alternative 
fuels that are substantially non-petroleum based, as 
defined by the Department of Energy, but not ex-
cluding hybrid systems or natural gas powered vehi-
cles.’’. 
(f) CONFORMING AMENDMENTS.—The analysis of 
subchapter I of chapter 471 is amended by adding at the 
end the following:
‘‘47138. Emission credits for air quality projects. 
‘‘47139. Airport ground support equipment emissions retrofit pilot program.’’.