In the Senate of the United States,
June 12, 2003.
Resolved, That the bill from the House of Representa-
tives (H.R. 2115) entitled ‘‘An Act to amend title 49, United
States Code, to reauthorize programs for the Federal Avia-
tion Administration, and for other purposes.’’, do pass with
the following
AMENDMENT:
Strike out all after the enacting clause and insert:
SECTION 1. SHORT TITLE; AMENDMENT OF TITLE 49.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Aviation Investment and Revitalization Vision Act’’.
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(b) AMENDMENT OF TITLE 49.—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 consid-
ered to be made to a section or other provision of title 49,
United States Code.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title; amendment of title 49.
Sec. 2. Table of contents.
TITLE I—REAUTHORIZATIONS; FAA MANAGEMENT
Sec. 101. Airport improvement program.
Sec. 102. Airway facilities improvement program.
Sec. 103. FAA operations.
Sec. 104. Research, engineering, and development.
Sec. 105. Other programs.
Sec. 106. Reorganization of the Air Traffic Services Subcommittee.
Sec. 107. Clarification of responsibilities of chief operating officer.
Sec. 108. Whistle-blower protection under Acquisition Management System.
TITLE II—AIRPORT DEVELOPMENT
Sec. 201. National capacity projects.
Sec. 202. Categorical exclusions.
Sec. 203. Alternatives analysis.
Sec. 204. Increase in apportionment for, and flexibility of, noise compatibility
planning programs.
Sec. 205. Secretary of Transportation to identify airport congestion-relief projects.
Sec. 206. Design-build contracting.
Sec. 207. Special rule for airport in Illinois.
Sec. 208. Elimination of duplicative requirements.
Sec. 209. Streamlining the passenger facility fee program.
Sec. 210. Quarterly status reports.
Sec. 211. Noise disclosure.
Sec. 212. Prohibition on requiring airports to provide rent-free space for FAA or
TSA.
Sec. 213. Special rules for fiscal year 2004.
Sec. 214. Agreements for operation of airport facilities.
Sec. 215. Public agencies.
Sec. 216. Flexible funding for nonprimary airport apportionments.
Sec. 217. Share of airport project costs.
Sec. 218. Pilot program for purchase of airport development rights.
Sec. 219. Gary/Chicago Airport funding.
Sec. 220. Civil penalty for closure of an airport without providing sufficient no-
tice.
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Sec. 221. Anchorage air traffic control.
TITLE III—AIRLINE SERVICE DEVELOPMENT
Subtitle A—Program Enhancements
Sec. 301. Delay reduction meetings.
Sec. 302. Small community air service development pilot program.
Sec. 303. DOT study of competition and access problems at large and medium
hub airports.
Sec. 304. Competition disclosure requirement for large and medium hub airports.
Sec. 305. Location of shuttle service at Ronald Reagan Washington National Air-
port.
Sec. 306. Air carriers required to honor tickets for suspended service.
Subtitle B—Small Community and Rural Air Service Revitalization
Sec. 351. Reauthorization of essential air service program.
Sec. 352. Incentive program.
Sec. 353. Pilot programs.
Sec. 354. EAS program authority changes.
Sec. 355. One-year extension of EAS eligibility for communities terminated in
2003 due to decreased air travel.
Subtitle C—Financial Improvement Effort and Executive Compensation Report
Sec. 371. GAO report on airlines actions to improve finances and on executive
compensation.
TITLE IV—AVIATION SECURITY
Sec. 401. Study of effectiveness of transportation security system.
Sec. 402. Aviation security capital fund.
Sec. 403. Technical amendments related to security-related airport development.
Sec. 404. Armed forces charters.
Sec. 405. Arming cargo pilots against terrorism.
Sec. 406. General aviation and air charters.
Sec. 407. Air defense identification zone.
Sec. 408. Report on passenger prescreening program.
Sec. 409. Removal of cap on TSA staffing level.
Sec. 410. Foreign repair station safety and security.
TITLE V—MISCELLANEOUS
Sec. 501. Extension of war risk insurance authority.
Sec. 502. Cost-sharing of air traffic modernization projects.
Sec. 503. Counterfeit or fraudulently represented parts violations.
Sec. 504. Clarifications to procurement authority.
Sec. 505. Judicial review.
Sec. 506. Civil penalties.
Sec. 507. Miscellaneous amendments.
Sec. 508. Low-emission airport vehicles and infrastructure.
Sec. 509. Low-emission airport vehicles and ground support equipment.
Sec. 510. Pacific emergency diversion airport.
Sec. 511. Gulf of Mexico aviation service improvements.
Sec. 512. Air traffic control collegiate training initiative.
Sec. 513. Air transportation oversight system plan.
Sec. 514. National small community air service development Ombudsman.
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Sec. 515. National commission on small community air service.
Sec. 516. Training certification for cabin crew.
Sec. 517. Aircraft manufacturer insurance.
Sec. 518. Ground-based precision navigational aids.
Sec. 519. Standby power efficiency program.
Sec. 520. Certain interim and final rules.
Sec. 521. Air fares for members of armed forces.
Sec. 522. Modification of requirements regarding training to operate aircraft.
Sec. 523. Exemption for Jackson Hole Airport.
Sec. 524. Distance requirement applicable to eligibility for essential air service
subsidies.
Sec. 525. Reimbursement for losses incurred by general aviation entities.
Sec. 526. Recommendations concerning travel agents.
Sec. 527. Pass-through of refunded passenger security fees to code-share partners.
Sec. 528. Air carrier citizenship.
Sec. 529. United States presence in global air cargo industry.
TITLE VI—SECOND CENTURY OF FLIGHT
Sec. 601. Findings.
Subtitle A—The Office of Aerospace and Aviation Liaison
Sec. 621. Office of Aerospace and Aviation Liaison.
Sec. 622. National Air Traffic Management System Development Office.
Sec. 623. Report on certain market developments and government policies.
Sec. 624. Transfer of certain air traffic control functions prohibited.
Subtitle B—Technical Programs
Sec. 641. Aerospace and aviation safety workforce initiative.
Sec. 642. Scholarships for service.
Subtitle C—FAA Research, Engineering, and Development
Sec. 661. Research program to improve airfield pavements.
Sec. 662. Ensuring appropriate standards for airfield pavements.
Sec. 663. Assessment of wake turbulence research and development program.
Sec. 664. Air quality in aircraft cabins.
Sec. 665. International role of the FAA.
Sec. 666. FAA report on other nations’ safety and technological advancements.
Sec. 667. Development of analytical tools and certification methods.
Sec. 668. Pilot program to provide incentives for development of new technologies.
Sec. 669. FAA center for excellence for applied research and training in the use
of advanced materials in transport aircraft.
Sec. 670. FAA certification of design organizations.
Sec. 671. Report on long term environmental improvements.
TITLE VII—EXTENSION OF AIRPORT AND AIRWAY TRUST FUND
EXPENDITURE AUTHORITY
Sec. 701. Extension of expenditure authority.
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TITLE I—REAUTHORIZATIONS;
FAA MANAGEMENT
SEC. 101. AIRPORT IMPROVEMENT PROGRAM.
(a) AUTHORIZATION
OF APPROPRIATIONS.—Section
48103 is amended—
(1) by inserting ‘‘(a) IN GENERAL.—’’ before
‘‘The’’;
(2) by striking ‘‘and’’ in paragraph (4);
(3) by striking ‘‘2003.’’ in paragraph (5) and in-
serting ‘‘2003;’’;
(4) by inserting after paragraph (5) the fol-
lowing:
‘‘(6) $3,400,000,000 for fiscal year 2004;
‘‘(7) $3,500,000,000 for fiscal year 2005; and
‘‘(8) $3,600,000,000 for fiscal year 2006.’’; and
(5) by adding at the end the following:
‘‘(b) ADMINISTRATIVE EXPENSES.—From the amounts
authorized by paragraphs (6) through (8) of subsection (a),
there shall be available for administrative expenses relating
to the airport improvement program, passenger facility fee
approval and oversight, national airport system planning,
airport standards development and enforcement, airport
certification, airport-related environmental activities (in-
cluding legal service), to remain available until expended—
‘‘(1) for fiscal year 2004, $69,737,000;
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‘‘(2) for fiscal year 2005, $71,816,000; and
‘‘(3) for fiscal year 2006, $74,048,000.’’.
(b) OBLIGATIONAL AUTHORITY.—Section 47104(c) is
amended by striking ‘‘2003,’’ and inserting ‘‘2006,’’.
SEC. 102. AIRWAY FACILITIES IMPROVEMENT PROGRAM.
(a) IN GENERAL.—Section 48101(a) is amended by
adding at the end the following:
‘‘(6) $2,916,000,000 for fiscal year 2004.
‘‘(7) $2,971,000,000 for fiscal year 2005.
‘‘(8) $3,030,000,000 for fiscal year 2006.’’.
(b) BIANNUAL REPORTS.—Beginning 180 days after
the date of enactment of Act, the Administrator of the Fed-
eral Aviation Administration shall transmit a report to the
Senate Committee on Commerce, Science, and Transpor-
tation and the House of Representatives Committee on
Transportation and Infrastructure every 6 months that
describes—
(1) the 10 largest programs funded under section
48101(a) of title 49, United States Code;
(2) any changes in the budget for such programs;
(3) the program schedule; and
(4) technical risks associated with the programs.
SEC. 103. FAA OPERATIONS.
(a) IN GENERAL.—Section 106(k)(1) is amended—
(1) by striking ‘‘and’’ in subparagraph (C);
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(2) by striking ‘‘2003.’’ in subparagraph (D)
and inserting ‘‘2003;’’; and
(3) by adding at the end the following:
‘‘(E) $7,591,000,000 for fiscal year 2004;
‘‘(F) $7,732,000,000 for fiscal year 2005;
and
‘‘(G) $7,889,000,000 for fiscal year 2006.’’.
(b) ANNUAL REPORT.—Beginning with the submission
of the Budget of the United States to the Congress for fiscal
year 2004, the Administrator of the Federal Aviation Ad-
ministration shall transmit a report to the Senate Com-
mittee on Commerce, Science, and Transportation and the
House of Representatives Committee on Transportation and
Infrastructure that describes the overall air traffic controller
staffing plan, including strategies to address anticipated re-
tirement and replacement of air traffic controllers.
SEC. 104. RESEARCH, ENGINEERING, AND DEVELOPMENT.
(a) AMOUNTS AUTHORIZED.—Section 48102(a) is
amended—
(1) by striking ‘‘and’’ at the end of paragraph
(7);
(2) by striking the period at the end of para-
graph (8) and inserting a semicolon; and
(3) by adding at the end the following:
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‘‘(9) 
for 
fiscal 
year 
2004, 
$289,000,000,
including—
‘‘(A) $200,000,000 to improve aviation safe-
ty, including icing, crashworthiness, and aging
aircraft;
‘‘(B) $18,000,000 to improve the efficiency
of the air traffic control system;
‘‘(C) $27,000,000 to reduce the environ-
mental impact of aviation;
‘‘(D) $16,000,000 to improve the efficiency
of mission support; and
‘‘(E) $28,000,000 to improve the durability
and maintainability of advanced material struc-
tures in transport airframe structures;
‘‘(10) 
for 
fiscal 
year 
2005, 
$304,000,000,
including—
‘‘(A) $211,000,000 to improve aviation safe-
ty;
‘‘(B) $19,000,000 to improve the efficiency
of the air traffic control system;
‘‘(C) $28,000,000 to reduce the environ-
mental impact of aviation;
‘‘(D) $17,000,000 to improve the efficiency
of mission support; and
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‘‘(E) $29,000,000 to improve the durability
and maintainability of advanced material struc-
tures in transport airframe structures; and
‘‘(11) 
for 
fiscal 
year 
2006, 
$317,000,000,
including—
‘‘(A) $220,000,000 to improve aviation safe-
ty;
‘‘(B) $20,000,000 to improve the efficiency
of the air traffic control system;
‘‘(C) $29,000,000 to reduce the environ-
mental impact of aviation;
‘‘(D) $18,000,000 to improve the efficiency
of mission support; and
‘‘(E) $30,000,000 to improve the durability
and maintainability of advanced material struc-
tures in transport airframe structures.’’.
SEC. 105. OTHER PROGRAMS.
Section 106 of the Wendell H. Ford Aviation Invest-
ment and Reform Act for the 21st Century is amended—
(1) by striking ‘‘2003’’ in subsection (a)(1)(A)
and subsection (c)(2) and inserting ‘‘2006’’; and
(2) by striking ‘‘2003,’’ in subsection (a)(2) and
inserting ‘‘2006,’’.
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SEC. 106. REORGANIZATION OF THE AIR TRAFFIC SERVICES
SUBCOMMITTEE.
(a) IN GENERAL.—Section 106 is amended—
(1) by redesignating subsections (q) and (r) as
subsections (r) and (s), respectively; and
(2) by inserting after subsection (p) the fol-
lowing:
‘‘(q) AIR TRAFFIC MANAGEMENT COMMITTEE.—
‘‘(1) ESTABLISHMENT.—The Secretary of Trans-
portation shall establish an advisory committee which
shall be known as the Air Traffic Services Committee
(in this subsection referred to as the ‘Committee’).
‘‘(2) MEMBERSHIP.—
‘‘(A) COMPOSITION
AND
APPOINTMENT.—
The Committee shall be composed of—
‘‘(i) the Administrator of the Federal
Aviation Administration, who shall serve as
chair; and
‘‘(ii) 4 members, to be appointed by the
Secretary, after consultation with the Com-
mittee on Transportation and Infrastruc-
ture of the House of Representatives, and
the Committee on Commerce, Science, and
Transportation of the Senate.
‘‘(B) 
NO
FEDERAL
OFFICER
OR
EM-
PLOYEE.—No member appointed under subpara-
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graph (A)(ii) may serve as an officer or em-
ployee of the United States Government while
serving as a member of the Committee.
‘‘(C) 
ELIGIBILITY.—Members 
appointed
under subparagraph (A)(ii) shall—
‘‘(i) have a fiduciary responsibility to
represent the public interest;
‘‘(ii) be citizens of the United States;
and
‘‘(iii) be appointed without regard to
political affiliation and solely on the basis
of their professional experience and exper-
tise in one or more 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.
At least one of such members should have a
background in managing large organiza-
tions successfully. In the aggregate, such
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members should collectively bring to bear
expertise in all of the areas described in
subclauses (I) through (VI).
‘‘(D) PROHIBITIONS ON MEMBERS OF COM-
MITTEE.—No member appointed under subpara-
graph (A)(ii) 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 related
to aviation or aeronautics; or
‘‘(iii) be a member of any organization
that engages, as a substantial part of its ac-
tivities, in activities to influence aviation-
related legislation.
‘‘(E) CLAIMS AGAINST MEMBERS.—
‘‘(i) IN
GENERAL.—A member ap-
pointed under subparagraph (A)(ii) shall
have no personal liability under Federal
law with respect to any claim arising out
of or resulting from an act or omission by
such member within the scope of service as
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a member of the Air Traffic Services Com-
mittee.
‘‘(ii) EFFECT ON OTHER LAW.—This
subparagraph shall not be construed—
‘‘(I) to affect any other immunity
or protection that may be available to
a member of the Committee under ap-
plicable law with respect to such trans-
actions;
‘‘(II) to affect any other right or
remedy against the United States
under applicable law; or
‘‘(III) to limit or alter in any
way the immunities that are available
under applicable law for Federal offi-
cers and employees.
‘‘(F) ETHICAL CONSIDERATIONS.—
‘‘(i) FINANCIAL DISCLOSURE.—During
the entire period that an individual ap-
pointed under subparagraph (A)(ii) is a
member of the Committee, such individual
shall be treated as serving as an officer or
employee referred to in section 101(f) of the
Ethics in Government Act of 1978 for pur-
poses of title I of such Act; except that sec-
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tion 101(d) of such Act shall apply without
regard to the number of days of service in
the position.
‘‘(ii) RESTRICTIONS ON POST-EMPLOY-
MENT.—For purposes of section 207(c) of
title 18, an individual appointed under
subparagraph (A)(ii) shall be treated as an
employee 
referred 
to 
in 
section
207(c)(2)(A)(i) of such title during the en-
tire period the individual is a member of
the Committee; except that subsections
(c)(2)(B) and (f) of section 207 of such title
shall not apply.
‘‘(G) TERMS
FOR
AIR
TRAFFIC
SERVICES
COMMITTEE
MEMBERS.—A member appointed
under subparagraph (A)(ii) shall be appointed
for a term of 5 years.
‘‘(H) 
REAPPOINTMENT.—An 
individual
may not be appointed under subparagraph
(A)(ii) to more than two 5-year terms.
‘‘(I) VACANCY.—Any vacancy on the Com-
mittee shall be filled in the same manner as the
original appointment. Any member appointed to
fill a vacancy occurring before the expiration of
the term for which the member’s predecessor was
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appointed shall be appointed for the remainder
of that term.
‘‘(J) CONTINUATION IN OFFICE.—A member
whose term expires shall continue to serve until
the date on which the member’s successor takes
office.
‘‘(K) REMOVAL.—Any member appointed
under subparagraph (A)(ii) may be removed for
cause by the Secretary.
‘‘(3) GENERAL RESPONSIBILITIES.—
‘‘(A) OVERSIGHT.—The Committee shall
oversee the administration, management, con-
duct, direction, and supervision of the air traffic
control system.
‘‘(B) CONFIDENTIALITY.—The Committee
shall ensure that appropriate confidentiality is
maintained in the exercise of its duties.
‘‘(4) SPECIFIC
RESPONSIBILITIES.—The Com-
mittee shall have the following specific responsibil-
ities:
‘‘(A) STRATEGIC
PLANS.—To review, ap-
prove, and monitor the strategic plan for the air
traffic control system, including the establish-
ment of—
‘‘(i) a mission and objectives;
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‘‘(ii) standards of performance relative
to such mission and objectives, including
safety, efficiency, and productivity; and
‘‘(iii) annual and long-range strategic
plans.
‘‘(B) 
MODERNIZATION
AND
IMPROVE-
MENT.—To review and approve—
‘‘(i) methods to accelerate air traffic
control modernization and improvements in
aviation safety related to air traffic control;
and
‘‘(ii) procurements of air traffic control
equipment in excess of $100,000,000.
‘‘(C) OPERATIONAL PLANS.—To review the
operational functions of the air traffic control
system, including—
‘‘(i) plans for modernization of the air
traffic control system;
‘‘(ii) plans for increasing productivity
or implementing cost-saving measures; and
‘‘(iii) plans for training and edu-
cation.
‘‘(D) MANAGEMENT.—To—
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‘‘(i) review and approve the Adminis-
trator’s appointment of a Chief Operating
Officer under section 106(s);
‘‘(ii) review the Administrator’s selec-
tion, evaluation, and compensation of sen-
ior executives of the Administration who
have program management responsibility
over significant functions of the air traffic
control system;
‘‘(iii) review and approve the Adminis-
trator’s plans for any major reorganization
of the Administration that would impact on
the management of the air traffic control
system;
‘‘(iv) review and approve the Adminis-
trator’s cost accounting and financial man-
agement structure and technologies to help
ensure efficient and cost-effective air traffic
control operation; and
‘‘(v) review the performance and com-
pensation of managers responsible for major
acquisition projects, including the ability of
the managers to meet schedule and budget
targets.
‘‘(E) BUDGET.—To—
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‘‘(i) review and approve the budget re-
quest of the Administration related to the
air traffic control system prepared by the
Administrator;
‘‘(ii) submit such budget request to the
Secretary; and
‘‘(iii) ensure that the budget request
supports the annual and long-range stra-
tegic plans.
‘‘(5) CONGRESSIONAL
REVIEW
OF
PRE-OMB
BUDGET REQUEST.—The Secretary shall submit the
budget request referred to in paragraph (4)(E)(ii) for
any fiscal year to the President who shall transmit
such request, without revision, to the Committees on
Transportation and Infrastructure and Appropria-
tions of the House of Representatives and the Com-
mittees on Commerce, Science, and Transportation
and Appropriations of the Senate, together with the
President’s annual budget request for the Federal
Aviation Administration for such fiscal year.
‘‘(6) COMMITTEE PERSONNEL MATTERS.—
‘‘(A) COMPENSATION OF MEMBERS.—Each
member of the Committee, other than the chair,
shall be compensated at a rate of $25,000 per
year.
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‘‘(B) STAFF.—The chair of the Committee
may appoint and terminate any personnel that
may be necessary to enable the Committee to per-
form its duties.
‘‘(C) PROCUREMENT
OF
TEMPORARY
AND
INTERMITTENT
SERVICES.—The chair of the
Committee may procure temporary and inter-
mittent services under section 3109(b) of title 5,
United States Code.
‘‘(7) ADMINISTRATIVE MATTERS.—
‘‘(A) POWERS OF CHAIR.—Except as other-
wise provided by a majority vote of the Com-
mittee, the powers of the chair shall include—
‘‘(i) establishing subcommittees;
‘‘(ii) setting meeting places and times;
‘‘(iii) establishing meeting agendas;
and
‘‘(iv) developing rules for the conduct
of business.
‘‘(B) MEETINGS.—The Committee shall
meet at least quarterly and at such other times
as the chair determines appropriate.
‘‘(C) QUORUM.—Three members of the Com-
mittee shall constitute a quorum. A majority of
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members present and voting shall be required for
the Committee to take action.
‘‘(D) APPLICATION OF SUBSECTION (p) PRO-
VISIONS.—The following provisions of subsection
(p) apply to the Committee to the same extent as
they apply to the Management Advisory Council:
‘‘(i) Paragraph (4)(C) (relating to ac-
cess to documents and staff).
‘‘(ii) Paragraph (5) (relating to non-
application of Federal Advisory Committee
Act).
‘‘(iii) Paragraph (6)(G) (relating to
travel and per diem).
‘‘(iv) Paragraph (6)(H) (relating to
detail of personnel).
‘‘(8) ANNUAL
REPORT.—The Committee shall
each year report with respect to the conduct of its re-
sponsibilities under this title to the Administrator,
the Management Advisory Council, the Committee on
Transportation and Infrastructure of the House of
Representatives, and the Committee on Commerce,
Science, and Transportation of the Senate.’’.
(b) CONFORMING AMENDMENTS.—
(1) Subsection (p) of section 106 is amended—
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(A) by striking ‘‘18’’ in paragraph (2) and
inserting ‘‘13’’;
(B) by inserting ‘‘and’’ after the semicolon
in subparagraph (C) of paragraph (2);
(C) by striking ‘‘Transportation; and’’ in
subparagraph (D) of paragraph (2) and insert-
ing ‘‘Transportation.’’;
(D) by striking subparagraph (E) of para-
graph (2);
(E) by striking paragraph (3) and inserting
the following:
‘‘(3) NO FEDERAL OFFICER OR EMPLOYEE.—No
member appointed under paragraph (2)(C) may serve
as an officer or employee of the United States Govern-
ment while serving as a member of the Council.’’;
(F) by striking subparagraphs (C), (D),
(H), and (I) of paragraph (6) and redesignating
subparagraphs (E), (F), (G), (J), (K), and (L)
as subparagraphs (C), (D), (E), (F), (G), and
(H), respectively; and
(G) by striking paragraphs (7) and (8).
(2) Section 106(s) (as redesignated by subsection
(a) of this section) is amended—
(A) by striking ‘‘Air Traffic Services Sub-
committee of the Aviation Management Advisory
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Council.’’ and inserting ‘‘Air Traffic Services
Committee.’’ in paragraphs (1)(A) and (2)(A);
and
(B) by striking ‘‘Air Traffic Services Sub-
committee of the Aviation Management Advisory
Council,’’ and inserting ‘‘Air Traffic Services
Committee,’’ in paragraph (3).
(3) Section 106 is amended by adding at the end
the following:
‘‘(t) AIR TRAFFIC CONTROL SYSTEM DEFINED.—In
this section, the term ‘air traffic control system’ has the
meaning such term has under section 40102(a).’’.
(c) TRANSITION FROM AIR TRAFFIC SERVICE SUB-
COMMITTEE TO AIR TRAFFIC SERVICE COMMITTEE.—
(1) TERMINATION
OF
MANAGEMENT
ADVISORY
COUNCIL MEMBERSHIP.—Effective on the day after
the date of enactment of this Act, any member of the
Management Advisory Council appointed under sec-
tion 106(p)(2)(E) of title 49, United States Code, (as
such section was in effect on the day before such date
of enactment) who is a member of the Council on such
date of enactment shall cease to be a member of the
Council.
(2) COMMENCEMENT
OF
MEMBERSHIP
ON
AIR
TRAFFIC SERVICES COMMITTEE.—Effective on the day
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after the date of enactment of this Act, any member
of the Management Advisory Council whose member-
ship is terminated by paragraph (1) shall become a
member of the Air Traffic Services Committee as pro-
vided by section 106(q)(2)(G) of title 49, United
States Code, to serve for the remainder of the term to
which that member was appointed to the Council.
SEC. 107. CLARIFICATION OF RESPONSIBILITIES OF CHIEF
OPERATING OFFICER.
Section 106(s) (as redesignated by section 106(a)(1) of
this Act) is amended—
(1) by striking ‘‘Transportation and Congress’’
in paragraph (4) and inserting ‘‘Transportation, the
Committee on Transportation and Infrastructure of
the House of Representatives, and the Committee on
Commerce, Science, and Transportation of the Sen-
ate,’’;
(2) by striking ‘‘develop a strategic plan of the
Administration for the air traffic control system, in-
cluding the establishment of—’’ in paragraph (5)(A)
and inserting ‘‘implement the strategic plan of the
Administration for the air traffic control system in
order to further—’’;
(3) by striking ‘‘To review the operational func-
tions of the Administration,’’ in paragraph (5)(B)
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and inserting ‘‘To oversee the day-to-day operational
functions of the Administration for air traffic con-
trol,’’;
(4) by striking ‘‘system prepared by the Admin-
istrator;’’ in paragraph (5)(C)(i) and inserting ‘‘sys-
tem;’’;
(5) by striking ‘‘Administrator and the Secretary
of Transportation;’’ in paragraph (5)(C)(ii) and in-
serting ‘‘Administrator;’’; and
(6) by striking paragraph (5)(C)(iii) and insert-
ing the following:
‘‘(iii) ensure that the budget request
supports the agency’s annual and long-
range strategic plans for air traffic control
services.’’.
SEC. 108. WHISTLE-BLOWER PROTECTION UNDER ACQUISI-
TION MANAGEMENT SYSTEM.
Section 40110(d)(2)(C) is amended by striking ‘‘355).’’
and inserting ‘‘355), except for section 315 (41 U.S.C. 265).
For the purpose of applying section 315 of that Act to the
system, the term ‘executive agency’ is deemed to refer to the
Federal Aviation Administration.’’.
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TITLE II—AIRPORT
DEVELOPMENT
SEC. 201. NATIONAL CAPACITY PROJECTS.
(a) IN GENERAL.—Part B of subtitle VII is amended
by adding at the end the following:
‘‘CHAPTER 477. NATIONAL CAPACITY PROJECTS
‘‘47701. Capacity enhancement.
‘‘47702. Designation of national capacity projects.
‘‘47703. Expedited coordinated environmental review process; project coordinators
and environment impact teams.
‘‘47704. Compatible land use initiative for national capacity projects.
‘‘47705. Air traffic procedures at national capacity projects.
‘‘47706. Pilot program for environmental review at national capacity projects.
‘‘47707. Definitions.
‘‘§ 47701. Capacity enhancement
‘‘(a) IN GENERAL.—Within 30 days after the date of
enactment of the Aviation Investment and Revitalization
Vision Act, the Secretary of Transportation shall identify
those airports among the 31 airports covered by the Federal
Aviation Administration’s Airport Capacity Benchmark
Report 2001 with delays that significantly affect the na-
tional air transportation system.
‘‘(b) 
TASK
FORCE; 
CAPACITY
ENHANCEMENT
STUDY.—
‘‘(1) IN GENERAL.—The Secretary shall direct
any airport identified by the Secretary under sub-
section (a) that is not engaged in a runway expan-
sion process and has not initiated a capacity en-
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hancement study (or similar capacity assessment)
since 1996—
‘‘(A) to establish a delay reduction task
force to study means of increasing capacity at
the airport, including air traffic, airline sched-
uling, and airfield expansion alternatives; or
‘‘(B) to conduct a capacity enhancement
study.
‘‘(2) SCOPE.—The scope of the study shall be de-
termined by the airport and the Federal Aviation Ad-
ministration, and where appropriate shall consider
regional capacity solutions.
‘‘(3) RECOMMENDATIONS
SUBMITTED
TO
SEC-
RETARY.—
‘‘(A) TASK FORCE.—A task force established
under this subsection shall submit a report con-
taining its findings and conclusions, together
with any recommendations for capacity enhance-
ment at the airport, to the Secretary within 9
months after the task force is established.
‘‘(B) CES.—A capacity enhancement study
conducted under this subsection shall be sub-
mitted, together with its findings and conclu-
sions, to the Secretary as soon as the study is
completed.
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chapter I of chapter 471, notwithstanding any
provision of that subchapter to the contrary; and
‘‘(B) no passenger facility fee may be ap-
proved at that airport during the 5-year period
beginning 30 days after the date on which the re-
port or study is submitted to the Secretary, for—
‘‘(i) projects that, but for subparagraph
(A), could have been funded under chapter
471; or
‘‘(ii) any project other than on-airport
airfield-side 
capacity 
or 
safety-related
projects.
‘‘(2) SAFETY-RELATED
AND
ENVIRONMENTAL
PROJECTS EXCEPTED.—Paragraph (1) does not apply
to the use of funds for safety-related, security, or envi-
ronment projects.
‘‘(e) AIRPORTS THAT TAKE ACTION.—The Secretary
shall take all actions possible to expedite funding and pro-
vide options for funding to any airport undertaking run-
way construction or reconfiguration projects in response to
recommendations by its task force.
‘‘§ 47702. Designation of national capacity projects
‘‘(a) IN GENERAL.—In response to a petition from an
airport sponsor, or in the case of an airport on the list
of airports covered by the Federal Aviation Administra-
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tion’s Airport Capacity Benchmarks study, the Secretary
of Transportation may designate an airport development
project as a national capacity project if the Secretary deter-
mines that the project to be designated will significantly
enhance the capacity of the national air transportation sys-
tem.
‘‘(b) DESIGNATION TO REMAIN
IN EFFECT
FOR 5
YEARS.—The designation of a project as a national capac-
ity project under paragraph (1) shall remain in effect for
5 years. The Secretary may extend the 5-year period for
up to 2 additional years upon request if the Secretary finds
that substantial progress is being made toward completion
of the project.
‘‘§ 47703. Expedited coordinated environmental re-
view process; project coordinators and en-
vironment impact teams
‘‘(a) IN GENERAL.—The Secretary of Transportation
shall implement an expedited coordinated environmental
review process for national capacity projects that—
‘‘(1) provides for better coordination among the
Federal, regional, State, and local agencies concerned
with the preparation of environmental impact state-
ments or environmental assessments under the Na-
tional Environmental Policy Act of 1969 (42 U.S.C.
4321 et seq.);
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‘‘(2) provides for an expedited and coordinated
process in the conduct of environmental reviews that
ensures that, where appropriate, the reviews are done
concurrently and not consecutively; and
‘‘(3) provides for a date certain for completing
all environmental reviews.
‘‘(b) HIGH PRIORITY FOR AIRPORT ENVIRONMENTAL
REVIEWS.—Each department and agency of the United
States Government with jurisdiction over environmental re-
views shall accord any such review involving a national
capacity project the highest possible priority and conduct
the review expeditiously. If the Secretary finds that any
such department or agency is not complying with the re-
quirements of this subsection, the Secretary shall notify the
Senate Committee on Commerce, Science, and Transpor-
tation, and to the House of Representatives Committee on
Transportation and Infrastructure immediately.
‘‘(c) PROJECT COORDINATORS; EIS TEAMS.—
‘‘(1) DESIGNATION.—For each project designated
by the Secretary as a national capacity project under
subsection (a) for which an environmental impact
statement or environmental assessment must be filed,
the Secretary shall—
‘‘(A) designate a project coordinator within
the Department of Transportation; and
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‘‘(B) establish an environmental impact
team within the Department.
‘‘(2) FUNCTION.—The project coordinator and
the environmental impact team shall—
‘‘(A) coordinate the activities of all Federal,
State, and local agencies involved in the project;
‘‘(B) to the extent possible, working with
Federal, State and local officials, reduce and
eliminate duplicative and overlapping Federal,
State, and local permit requirements;
‘‘(C) to the extent possible, eliminate dupli-
cate Federal, State, and local environmental re-
view procedures; and
‘‘(D) provide direction for compliance with
all applicable Federal, State, and local environ-
mental requirements for the project.
‘‘§ 47704. Compatible land use initiative for national
capacity projects
‘‘(a) IN GENERAL.—The Secretary of Transportation
may make grants under chapter 471 to States and units
of local government for land use compatibility plans di-
rectly related to national capacity projects for the purposes
of making the use of land areas around the airport compat-
ible with aircraft operations if the land use plan or project
meets the requirements of this section.
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‘‘(b) CONDITIONS.—A land use plan or project meets
the requirements of this section if it—
‘‘(1) is sponsored by the public agency that has
the authority to plan and adopt land use control
measures, including zoning, in the planning area in
and around the airport and that agency provides
written assurances to the Secretary that it will work
with the affected airport to identify and adopt such
measures;
‘‘(2) does not duplicate, and is not inconsistent
with, an airport noise compatibility program pre-
pared by an airport owner or operator under chapter
475 or with other planning carried out by the air-
port;
‘‘(3) is subject to an agreement between the pub-
lic agency sponsor and the airport owner or operator
that the development of the land use compatibility
plan will be done cooperatively;
‘‘(4) is consistent with the airport operation and
planning, including the use of any noise exposure
contours on which the land use compatibility plan-
ning or project is based; and
‘‘(5) has been approved jointly by the airport
owner or operator and the public agency sponsor.
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‘‘(c) ASSURANCES FROM SPONSORS.—The Secretary
may require the airport sponsor, public agency, or other
entity to which a grant may be awarded under this section
to provide such additional assurances, progress reports, and
other information as the Secretary determines to be nec-
essary to carry out this section.
‘‘§ 47705. Air traffic procedures at national capacity
projects
‘‘(a) IN GENERAL.—The Secretary of Transportation
may consider prescribing flight procedures to avoid or min-
imize potentially significant adverse noise impacts of the
project during the environmental planning process for a na-
tional capacity project that involves the construction of new
runways or the reconfiguration of existing runways. If the
Secretary determines that noise mitigation flight procedures
are consistent with safe and efficient use of the navigable
airspace, then, at the request of the airport sponsor, the Ad-
ministrator may, in a manner consistent with applicable
Federal law, commit to prescribing such procedures in any
record of decision approving the project.
‘‘(b) MODIFICATION.—Notwithstanding any commit-
ment by the Secretary under subsection (a), the Secretary
may initiate changes to such procedures if necessary to
maintain safety and efficiency in light of new information
or changed circumstances.
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‘‘§ 47706. Pilot program for environmental review at
national capacity projects
‘‘(a) IN GENERAL.—The Secretary of Transportation
shall initiate a 5-year pilot program funded by airport
sponsors—
‘‘(1) to hire additional fulltime-equivalent envi-
ronmental specialists and attorneys, or
‘‘(2) to obtain the services of such specialists and
attorneys from outside the United States Government,
to assist in the provision of an appropriate nation-
wide level of staffing for planning and environmental
review of runway development projects for national
capacity projects at the Federal Aviation Administra-
tion.
‘‘(b) ELIGIBLE PARTICIPANTS.—Participation in the
pilot program shall be available, on a voluntary basis, to
airports with an annual passenger enplanement of not less
than 3 million passengers. The Secretary shall specify the
minimum contribution necessary to qualify for participa-
tion in the pilot program, which shall be not less than the
amount necessary to compensate the Department of Trans-
portation for the expense of a fulltime equivalent environ-
mental specialist and attorney qualified at the GS-14
equivalent level.
‘‘(c) RETENTION OF REVENUES.—The salaries and ex-
penses account of the Federal Aviation Administration shall
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retain as an offsetting collection such sums as may be nec-
essary from such proceeds for the costs of developing and
implementing the program required by subsection (a). Such
offsetting collections shall be available for obligation subject
to the terms and conditions of the receiving appropriations
account, and shall be deposited in such accounts on a quar-
terly basis. Such offsetting collections are authorized to re-
main available until expended for such purpose.
‘‘§ 47707. Definitions
‘‘In this chapter:
‘‘(1) NATIONAL CAPACITY PROJECT.—The term
‘national capacity project’ means a project designated
by the Secretary under section 44702.
‘‘(2) OTHER TERMS.—The definitions in section
47102 apply to any terms used in this chapter that
are defined in that section.’’.
(b) ADDITIONAL STAFF AUTHORIZED.—The Secretary
of Transportation is authorized to hire additional environ-
mental specialists and attorneys needed to process environ-
mental impact statements in connection with airport con-
struction projects and to serve as project coordinators and
environmental impact team members under section 47703
of title 49, United States Code.
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(c) CLERICAL AMENDMENT.—The analysis for subtitle
VII is amended by inserting after the item relating to sec-
tion 475 the following:
‘‘477. National capacity projects ..................................................................... 47701’’.
SEC. 202. CATEGORICAL EXCLUSIONS.
Not later than 30 days after the date of enactment of
this Act, the Secretary of Transportation shall report to the
Senate Committee on Commerce, Science, and Transpor-
tation on the categorical exclusions currently recognized
and provide a list of proposed additional categorical exclu-
sions from the requirement that an environmental assess-
ment or an environmental impact statement be prepared
under the National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.) for projects at airports. In determining
the list of additional proposed categorical exclusions, the
Secretary shall include such other projects as the Secretary
determines should be categorically excluded in order to en-
sure that Department of Transportation environmental
staff resources are not diverted to lower priority tasks and
are available to expedite the environmental reviews of air-
port capacity enhancement projects at congested airports.
SEC. 203. ALTERNATIVES ANALYSIS.
(a) NOTICE REQUIREMENT.—Not later than 30 days
after the date on which the Secretary of Transportation
identifies an airport capacity enhancement project at a
congested airport under section 47171(c) of title 49, United
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States Code, the Secretary shall publish a notice in the Fed-
eral Register requesting comments on whether reasonable al-
ternatives exist to the project.
(b) 
CERTAIN
REASONABLE
ALTERNATIVES
DE-
FINED.—For purposes of this section, an alternative shall
be considered reasonable if—
(1) the alternative does not create an unreason-
able burden on interstate commerce, the national
aviation system, or the navigable airspace;
(2) the alternative is not inconsistent with main-
taining the safe and efficient use of the navigable air-
space;
(3) the alternative does not conflict with a law
or regulation of the United States;
(4) the alternative would result in at least the
same reduction in congestion at the airport or in the
national aviation system as the proposed project; and
(5) in any case in which the alternative is a pro-
posed construction project at an airport other than a
congested airport, firm commitments to provide such
alternate airport capacity exists, and the Secretary
determines that such alternate airport capacity will
be available no later than 4 years after the date of the
Secretary’s determination under this section.
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(c) COMMENT PERIOD.—The Secretary shall provide
a period of 60 days for comments on a project identified
by the Secretary under this section after the date of publica-
tion of notice with respect to the project.
(d) DETERMINATION OF EXISTENCE OF REASONABLE
ALTERNATIVES.—Not later than 90 days after the last day
of a comment period established under subsection (c) for
a project, the Secretary shall determine whether reasonable
alternatives exist to the project. The determination shall be
binding on all persons, including Federal and State agen-
cies, acting under or applying Federal laws when consid-
ering the availability of alternatives to the project.
(e) LIMITATION ON APPLICABILITY.—This section does
not apply to—
(1) any alternatives analysis required under the
National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.); or
(2) a project at an airport if the airport sponsor
requests, in writing, to the Secretary that this section
not apply to the project.
SEC. 204. INCREASE IN APPORTIONMENT FOR, AND FLEXI-
BILITY OF, NOISE COMPATIBILITY PLANNING
PROGRAMS.
Section 47117(e)(1)(A) is amended—
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(1) by striking the first sentence and inserting:
‘‘At least 35 percent for grants for airport noise com-
patibility planning under section 47505(a)(2) for a
national capacity project, for carrying out noise com-
patibility programs under section 47504(c) of this
title, and for noise mitigation projects approved in an
environmental record of decision for an airport devel-
opment project designated as a national capacity
project under section 47702.’’; and
(2) by striking ‘‘or not such 34 percent require-
ment’’ in the second sentence and inserting ‘‘the fund-
ing level required by the preceding sentence’’.
SEC. 205. SECRETARY OF TRANSPORTATION TO IDENTIFY
AIRPORT CONGESTION-RELIEF PROJECTS.
(a) IN GENERAL.—Within 90 days after the date of
enactment of this Act, the Secretary of Transportation shall
provide to the Senate Committee on Commerce, Science,
and Transportation, and to the House of Representatives
Committee on Transportation and Infrastructure—
(1) a list of planned air traffic and airport-ca-
pacity projects at congested airport capacity bench-
mark airports the completion of which will substan-
tially relieve congestion at those airports; and
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(2) a list of options for expanding capacity at
the 8 airports on the list at which the most severe
delays are occurring.
(b) 2-YEAR UPDATE.—The Secretary shall provide up-
dated lists under subsection (a) to the Committees 2 years
after the date of enactment of this Act.
(c) DELISTING OF PROJECTS.—The Secretary shall re-
move a project from the list provided to the Committees
under this section upon the request, in writing, of an air-
port operator if the operator states in the request that con-
struction of the project will not be completed within 10
years from the date of the request.
SEC. 206. DESIGN-BUILD CONTRACTING.
(a) IN GENERAL.—Subchapter I of chapter 471 is
amended by adding at the end the following:
‘‘§ 47138. Design-build contracting
‘‘(a) IN GENERAL.—The Administrator may approve
an application of an airport sponsor under this section to
authorize the airport sponsor to award a design-build con-
tract using a selection process permitted under applicable
State or local law if—
‘‘(1) the Administrator approves the application
using criteria established by the Administrator;
‘‘(2) the design-build contract is in a form that
is approved by the Administrator;
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(3) by striking ‘‘(1)(C)’’ in paragraph (4), as re-
designated, and inserting ‘‘(1)(B)’’.
SEC. 209. STREAMLINING THE PASSENGER FACILITY FEE
PROGRAM.
Section 40117 is amended—
(1) by striking from ‘‘finds—’’ in paragraph (4)
of subsection (b) through the end of that paragraph
and inserting ‘‘finds that the project cannot be paid
for from funds reasonably expected to be available for
the programs referred to in section 48103.’’;
(2) by adding at the end of subsection (c)(2) the
following:
‘‘(E) The agency will include in its applica-
tion or notice submitted under subsection (1)
copies of all certifications of agreement or dis-
agreement received under subparagraph (D).
‘‘(F) For the purpose of this section, an eli-
gible agency providing notice and consultation to
an air carrier and foreign air carrier is deemed
to have satisfied this requirement if it limits
such notices and consultations to air carriers
and foreign air carriers that have a significant
business interest on the airport. In developing
regulations to implement this provision, the Sec-
retary shall consider a significant business inter-
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est to be defined as an air carrier or foreign air
carrier that has no less than 1.0 percent of
boardings at the airport in the prior calendar
year, except that no air carrier or foreign air
carrier may be considered excluded under this
section if it has at least 25,000 boardings at the
airport in the prior calendar year, or if it oper-
ates scheduled service, without regard to such
percentage requirements.’’;
(3) by redesignating paragraph (3) of subsection
(c) as paragraph (4) and inserting after paragraph
(2) the following:
‘‘(3) Before submitting an application, the eligi-
ble agency must provide reasonable notice and an op-
portunity for public comment. The Secretary shall
prescribe regulations that define reasonable notice and
provide for at least—
‘‘(A) a requirement that the eligible agency
provide public notice of intent to collect a pas-
senger facility fee so as to inform those interested
persons and agencies who may be affected,
including—
‘‘(i) publication in local newspapers of
general circulation;
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‘‘(ii) publication in other local media;
and
‘‘(iii) posting the notice on the agen-
cy’s website;
‘‘(B) a requirement for submission of public
comments no sooner than 30 days after pub-
lishing of the notice and not later than 45 days
after publication; and
‘‘(C) a requirement that the agency include
in its application or notice submitted under
paragraph (1) copies of all comments received
under subparagraph (B).’’;
(4) by striking ‘‘shall’’ in the first sentence of
paragraph (4), as redesignated, of subsection (c) and
inserting ‘‘may’’; and
(5) by adding at the end the following:
‘‘(l) PILOT PROGRAM FOR PASSENGER FACILITY FEE
AUTHORIZATIONS AT SMALL AIRPORTS.—
‘‘(1) There is established a pilot program for the
Secretary to test alternative procedures for author-
izing small airports to impose passenger facility fees.
An eligible agency may impose a passenger facility
fee at a nonhub airport (as defined in section
41762(11) of this title) that it controls for use on eli-
gible airport-related projects at that airport, in ac-
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cordance with the provisions of this subsection. These
procedures shall be in lieu of the procedures otherwise
specified in this section.
‘‘(2) The eligible agency must provide reasonable
notice and an opportunity for consultation to air car-
riers and foreign air carriers in accordance with sub-
section (c)(2), and must provide reasonable notice and
opportunity for public comment in accordance with
subsection (c)(3).
‘‘(3) The eligible agency must submit to the Sec-
retary a notice of intention to impose a passenger fa-
cility fee, which notice shall include—
‘‘(A) information that the Secretary may
require by regulation on each project for which
authority to impose a passenger facility charge
is sought;
‘‘(B) the amount of revenue from passenger
facility charges that is proposed to be collected
for each project; and
‘‘(C) the level of the passenger facility
charge that is proposed.
‘‘(4) The Secretary shall acknowledge receipt of
the notice and indicate any objection to the imposi-
tion of a passenger facility fee for any project identi-
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fied in the notice within 30 days after receipt of the
eligible agency’s notice.
‘‘(5) Unless the Secretary objects within 30 days
after receipt of the eligible agency’s notice, the eligible
agency is authorized to impose a passenger facility fee
in accordance with the terms of its notice.
‘‘(6) Not later than 180 days after the date of en-
actment of this subsection, the Secretary shall propose
such regulations as may be necessary to carry out this
subsection.
‘‘(7) The authority granted under this subsection
shall expire three years after the issuance of the regu-
lation required by paragraph (6).
‘‘(8) An acknowledgement issued under para-
graph (4) shall not be considered an order of the Sec-
retary issued under section 46110 of this title.’’.
SEC. 210. QUARTERLY STATUS REPORTS.
Beginning with the second calendar quarter ending
after the date of enactment of this Act, the Secretary of
Transportation shall provide quarterly status reports to the
Senate Committee on Commerce, Science, and Transpor-
tation and the House of Representatives Committee on
Transportation and Infrastructure on the status of con-
struction of each major runway project undertaken at the
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largest 40 commercial airports in terms of annual
enplanements.
SEC. 211. NOISE DISCLOSURE.
(a) NOISE DISCLOSURE SYSTEM IMPLEMENTATION
STUDY.—The Administrator of the Federal Aviation Ad-
ministration shall conduct a study to determine the feasi-
bility of developing a program under which prospective
home buyers of property located in the vicinity of an air-
port could be notified of information derived from noise ex-
posure maps that may affect the use and enjoyment of the
property. The study shall assess the scope, administration,
usefulness, and burdensomeness of any such program, the
costs and benefits of such a program, and whether partici-
pation in such a program should be voluntary or manda-
tory.
(b) PUBLIC
AVAILABILITY
OF
NOISE
EXPOSURE
MAPS.—The Federal Aviation Administration shall make
copies or facsimiles of noise exposure maps available to the
public via the Internet on its website in an appropriate
format.
(c) NOISE EXPOSURE MAP.—In this section, the term
‘‘noise exposure map’’ means a noise exposure map pre-
pared under section 47503 of title 49, United States Code.
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SEC. 212. PROHIBITION ON REQUIRING AIRPORTS TO PRO-
VIDE RENT-FREE SPACE FOR FAA OR TSA.
(a) IN GENERAL.—Chapter 401 is amended by adding
at the end the following:
‘‘§ 40129. Prohibition on rent-free space requirements
for FAA or TSA
‘‘(a) IN GENERAL.—Neither the Secretary of Transpor-
tation nor the Secretary of Homeland Security may require
airport sponsors to provide building construction, mainte-
nance, utilities and expenses, or space in airport sponsor-
owned buildings to the Federal Aviation Administration or
the Transportation Security Administration without cost
for services relating to air traffic control, air navigation,
aviation security, or weather reporting.
‘‘(b) NEGOTIATED AGREEMENTS.—Subsection (a) does
not prohibit—
‘‘(1) the negotiation of agreements between either
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 or the Transportation
Security Administration without cost or at below-
market rates; or
‘‘(2) either Secretary from requiring airport
sponsors to provide land without cost to the Federal
Aviation Administration for air traffic control facili-
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ties or space without cost to the Transportation Secu-
rity Administration for necessary security check-
points.’’.
(b) CONFORMING AMENDMENT.—The chapter analysis
for chapter 401 is amended by adding at the end the fol-
lowing:
‘‘40129. Prohibition on rent-free space requirements for FAA or TSA.’’.
SEC. 213. SPECIAL RULES FOR FISCAL YEAR 2004.
(a) APPORTIONMENT TO CERTAIN AIRPORTS WITH
DECLINING BOARDINGS.—
(1) IN GENERAL.—For fiscal year 2004, the Sec-
retary of Transportation may apportion funds under
section 47114 of title 49, United States Code, to the
sponsor of an airport described in paragraph (2) in
an amount equal to the amount apportioned to that
airport under that section for fiscal year 2002, not-
withstanding any provision of section 47114 to the
contrary.
(2) AIRPORTS
TO
WHICH
PARAGRAPH
(1)
AP-
PLIES.—Paragraph (1) applies to any airport deter-
mined by the Secretary to have had—
(A) less than 0.05 percent of the total
United States passenger boardings (as defined in
section 47102(10) of title 49, United States
Code) for the calendar year used for determining
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apportionments under section 47114 for fiscal
year 2004;
(B) less than 10,000 passenger boardings in
calendar year 2002; and
(C) 10,000 or more passenger boardings in
calendar year 2000.
(b) TEMPORARY INCREASE IN GOVERNMENT SHARE OF
CERTAIN AIP PROJECT COSTS.—Notwithstanding section
47109(a) of title 49, United States Code, the Government’s
share of allowable project costs for a grant made in fiscal
year 2004 under chapter 471 of that title for a project de-
scribed in paragraph (2) or (3) of that section shall be 95
percent.
SEC. 214. AGREEMENTS FOR OPERATION OF AIRPORT FA-
CILITIES.
Section 47124 is amended—
(1) by inserting ‘‘a qualified entity or’’ after
‘‘with’’ in subsection (a);
(2) by inserting ‘‘entity or ’’ after ‘‘allow the’’ in
subsection (a);
(3) by inserting ‘‘entity or’’ before ‘‘State’’ the
last place it appears in subsection (a);
(4) by striking ‘‘contract,’’ in subsection (b)(2)
and inserting ‘‘contract with a qualified entity, or’’;
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(5) by striking ‘‘the State’’ each place it appears
in subsection (b)(2) and inserting ‘‘the entity or
State’’;
(6) by striking ‘‘PILOT’’ in the caption of sub-
section (b)(3);
(7) by striking ‘‘pilot’’ in subsection (b)(3)(A);
(8) by striking ‘‘pilot’’ in subsection (b)(3)(D);
(9) by striking ‘‘$6,000,000 per fiscal year’’ in
subsection (b)(3)(E) and inserting ‘‘$6,500,000 for fis-
cal 2004, $7,000,000 for fiscal year 2005, and
$7,500,000 for fiscal year 2006’’; and
(10) by striking ‘‘$1,100,000.’’ in subsection
(b)(4)(C) and inserting ‘‘$1,500,000.’’.
SEC. 215. PUBLIC AGENCIES.
Section 47102(15) is amended—
(1) by striking ‘‘or’’ after the semicolon in sub-
paragraph (B);
(2) by redesignating subparagraph (C) as sub-
paragraph (D); and
(3) by inserting after subparagraph (B) the fol-
lowing:
‘‘(C) the Department of the Interior with re-
spect to an airport owned by the Department
that is required to be maintained for commercial
aviation safety at a remote location; or’’.
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SEC. 216. FLEXIBLE FUNDING FOR NONPRIMARY AIRPORT
APPORTIONMENTS.
(a) IN GENERAL.—Section 47117(c)(2) is amended to
read as follows:
‘‘(2) WAIVER.—A sponsor of an airport may
make an agreement with the Secretary of Transpor-
tation waiving the sponsor’s claim to any part of the
amount apportioned for the airport under sections
47114(c) and 47114(d)(2)(A) of this title if the Sec-
retary agrees to make the waived amount available
for a grant for another public-use airport in the same
State or geographical area as the airport, as deter-
mined by the Secretary.’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 47108(a) is amended by inserting
‘‘or section 47114(d)(2)(A)’’ after ‘‘under section
47114(c)’’.
(2) Section 47110 is amended—
(A) 
by 
inserting 
‘‘or 
section
47114(d)(2)(A)’’ in subsection (b)(2)(C) after ‘‘of
section 47114(c)’’;
(B) 
by 
inserting 
‘‘or 
section
47114(d)(2)(A)’’ in subsection (g) after ‘‘of sec-
tion 47114(c)’’;
(C) by striking ‘‘of project.’’ in subsection
(g) and inserting ‘‘of the project.’’; and
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(D) by adding at the end the following:
‘‘(h) NONPRIMARY AIRPORTS.—The Secretary may de-
cide that the costs of revenue producing aeronautical sup-
port facilities, including fuel farms and hangars, are allow-
able for an airport development project at a nonprimary
airport and for which the Government’s share is paid only
with funds apportioned to a sponsor under section
47114(d)(3)(A), if the Secretary determines that the sponsor
has made adequate provision for financing airside needs of
the airport.’’.
(3) Section 47119(b) is amended by—
(A) striking ‘‘or’’ after the semicolon in
paragraph (3);
(B) striking ‘‘1970.’’ in paragraph (4) and
inserting ‘‘1970; or’’; and
(C) adding at the end the following:
‘‘(5) to a sponsor of a nonprimary airport re-
ferred to in subparagraph (A) or (B) paragraph (2),
any part of amounts apportioned to the sponsor for
the fiscal year under section 47114(d)(3)(A) of this
title for project costs allowable under section 47110(d)
of this title.’’.
(c) APPORTIONMENT
FOR ALL-CARGO AIRPORTS.—
Section 47114(c)(2)(A) is amended by striking ‘‘3’’ and in-
serting ‘‘3.5’’.
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(d) CONSIDERATIONS FOR CARGO OPERATIONS.—Sec-
tion 47115(d) is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(5);
(2) by striking the period at the end of para-
graph (6) and inserting ‘‘; and’’; and
(3) by adding at the end the following new para-
graph:
‘‘(7) the ability of the project to foster United
States competitiveness in securing global air cargo ac-
tivity at a United States airport.’’.
(e) 
TERMINAL
DEVELOPMENT
COSTS.—Section
47119(a)(1)(C) is amended by striking ‘‘3 years’’ and in-
serting ‘‘1 year’’.
SEC. 217. SHARE OF AIRPORT PROJECT COSTS.
(a) IN GENERAL.—Section 47109 of title 49, United
States Code, is amended by redesignating subsection (c) as
subsection (d) and inserting after subsection (b) the fol-
lowing:
‘‘(c) GRANDFATHER RULE.—
‘‘(1) IN GENERAL.—In the case of any project
approved after September 30, 2001, at an airport
that has less than .25 percent of the total number of
passenger boardings at all commercial service air-
ports, and that is located in a State containing unap-
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propriated and unreserved public lands and non-
taxable Indian lands (individual and tribal) of more
than 5 percent of the total area of all lands in the
State, the Government’s share of allowable costs of the
project shall be increased by the same ratio as the
basic share of allowable costs of a project divided into
the increased (Public Lands States) share of allowable
costs of a project as shown on documents of the Fed-
eral Aviation Administration dated August 3, 1979,
at airports for which the general share was 80 percent
on August 3, 1979. This subsection shall apply only
if—
‘‘(A) the State contained unappropriated
and unreserved public lands and nontaxable In-
dian lands of more than 5 percent of the total
area of all lands in the State on August 3, 1979;
and
‘‘(B) the application under subsection (b),
does not increase the Government’s share of al-
lowable costs of the project
‘‘(2) LIMITATION.—The Government’s share of
allowable project costs determined under this sub-
section shall not exceed the lesser of 93.75 percent or
the highest percentage Government share applicable to
any project in any State under subsection (b).’’.
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(b) CONFORMING AMENDMENT.—Subsection (a) of Sec-
tion 47109, title 49, United States Code, is amended by
striking ‘‘Except as provided in subsection (b)’’, and insert-
ing in lieu thereof ‘‘Except as provided in subsection (b)
or subsection (c)’’.
SEC. 218. PILOT PROGRAM FOR PURCHASE OF AIRPORT DE-
VELOPMENT RIGHTS.
(a) IN GENERAL.—Chapter 471 is amended by adding
at the end the following:
‘‘§ 47141. Pilot program for purchase of airport devel-
opment rights
‘‘(a) IN GENERAL.—The Secretary of Transportation
shall establish a pilot program to support the purchase, by
a State or political subdivision of a State, of development
rights associated with, or directly affecting the use of, pri-
vately owned public use airports located in that State.
Under the program, the Secretary may make a grant to
a State or political subdivision of a State from funds ap-
portioned under section 47114 for the purchase of such
rights.
‘‘(b) GRANT REQUIREMENTS.—
‘‘(1) IN GENERAL.—The Secretary may not make
a grant under subsection (a) unless the grant is
made—
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‘‘(A) to enable the State or political subdivi-
sion to purchase development rights in order to
ensure that the airport property will continue to
be available for use as a public airport; and
‘‘(B) subject to a requirement that the State
or political subdivision acquire an easement or
other appropriate covenant requiring that the
airport shall remain a public use airport in per-
petuity.
‘‘(2) MATCHING REQUIREMENT.—The amount of
a grant under the program may not exceed 90 percent
of the costs of acquiring the development rights.
‘‘(c) GRANT STANDARDS.—The Secretary shall pre-
scribe 
standards 
for 
grants 
under 
subsection 
(a),
including—
‘‘(1) grant application and approval procedures;
and
‘‘(2) requirements for the content of the instru-
ment recording the purchase of the development
rights.
‘‘(d) RELEASE
OF PURCHASED RIGHTS
AND COV-
ENANT.—Any development rights purchased under the pro-
gram shall remain the property of the State or political
subdivision unless the Secretary approves the transfer or
disposal of the development rights after making a deter-
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mination that the transfer or disposal of that right is in
the public interest.
‘‘(e) LIMITATION.—The Secretary may not make a
grant under the pilot program for the purchase of develop-
ment rights at more than 10 airports’’.
(b) CONFORMING AMENDMENT.—The chapter analysis
for chapter 471 is amended by inserting after the item relat-
ing to section 47140 the following:
‘‘47141. Pilot program for purchase of airport development rights’’.
SEC. 219. GARY/CHICAGO AIRPORT FUNDING.
The Administrator of the Federal Aviation Adminis-
tration shall, for purposes of chapter 471 of title 49, United
States Code, give priority consideration to a letter of intent
application for funding submitted by the City of Gary, In-
diana, or the State of Indiana, for the extension of the main
runway at the Gary/Chicago Airport. The letter of intent
application shall be considered upon completion of the envi-
ronmental impact statement and benefit cost analysis in
accordance with Federal Aviation Administration require-
ments. The Administrator shall consider the letter of intent
application not later than 90 days after receiving it from
the applicant.
SEC. 220. CIVIL PENALTY FOR CLOSURE OF AN AIRPORT
WITHOUT PROVIDING SUFFICIENT NOTICE.
(a) IN GENERAL.—Chapter 463 is amended by adding
at the end the following:
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‘‘SEC. 46319. CLOSURE OF AN AIRPORT WITHOUT PRO-
VIDING SUFFICIENT 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 having
given the notice required by this section.’’.
(b) CONFORMING
AMENDMENT.—The analysis for
chapter 463 is amended by adding at the end the following:
‘‘46319. Closure of an airport without providing sufficient note.’’.
SEC. 221. ANCHORAGE AIR TRAFFIC CONTROL.
(a) IN GENERAL.—Not later than September 30, 2004,
the Administrator of the Federal Aviation Administration
shall complete a study and transmit a report to the appro-
priate committees regarding the feasibility of consolidating
the Anchorage Terminal Radar Approach Control and the
Anchorage Air Route Traffic Control Center at the existing
Anchorage Air Route Traffic Control Center facility.
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(b) APPROPRIATE COMMITTEES.—In this section, the
term ‘‘appropriate committees’’ means the Committee on
Commerce, Science, and Transportation of the Senate and
the Committee on Transportation and Infrastructure of the
House of Representatives.
TITLE III—AIRLINE SERVICE
DEVELOPMENT
Subtitle A—Program Enhancements
SEC. 301. DELAY REDUCTION MEETINGS.
(a) IN GENERAL.—Subchapter I of chapter 417 is
amended by adding at the end the following new section:
‘‘§ 41723. Delay reduction actions
‘‘(a) DELAY REDUCTION MEETINGS.—
‘‘(1) SCHEDULING REDUCTION MEETINGS.—The
Secretary of Transportation may request that air car-
riers meet with the Administrator of the Federal
Aviation Administration to discuss flight reductions
at severely congested airports to reduce overscheduling
and flight delays during hours of peak operation if—
‘‘(A) the Administrator of the Federal Avia-
tion Administration determines that it is nec-
essary to convene such a meeting; and
‘‘(B) the Secretary determines that the
meeting is necessary to meet a serious transpor-
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tation need or achieve an important public ben-
efit.
‘‘(2) MEETING CONDITIONS.—Any meeting under
paragraph (1)—
‘‘(A) shall be chaired by the Administrator;
‘‘(B) shall be open to all scheduled air car-
riers; and
‘‘(C) shall be limited to discussions involv-
ing the airports and time periods described in
the Administrator’s determination.
‘‘(3) FLIGHT REDUCTION TARGETS.—Before any
such meeting is held, the Administrator shall establish
flight reduction targets for the meeting and notify the
attending air carriers of those targets not less than 48
hours before the meeting.
‘‘(4) DELAY REDUCTION OFFERS.—An air car-
rier attending the meeting shall make any delay re-
duction offer to the Administrator rather than to an-
other carrier.
‘‘(5) TRANSCRIPT.—The Administrator shall en-
sure that a transcript of the meeting is kept and
made available to the public not later than 3 business
days after the conclusion of the meeting.
‘‘(b) STORMY WEATHER AGREEMENTS LIMITED EX-
EMPTION.—
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‘‘(1) IN GENERAL.—The Secretary may establish
a program to authorize by order discussions and
agreements between 2 or more air carriers for the
purpose of reducing flight delays during periods of in-
clement weather.
‘‘(2) REQUIREMENTS.—An authorization issued
under paragraph (1)—
‘‘(A) may only be issued by the Secretary
after a determination by the Federal Aviation
Administration that inclement weather is likely
to adversely and directly affect capacity at an
airport for a period of at least 3 hours;
‘‘(B) shall apply only to discussions and
agreements concerning flights directly affected by
the inclement weather; and
‘‘(C) shall remain in effect for a period of
24 hours.
‘‘(3) PROCEDURE.—The Secretary shall establish
procedures within 30 days after such date of enact-
ment for—
‘‘(A) filing requests for an authorization
under paragraph (1);
‘‘(B) participation under paragraph (5) by
representatives of the Department of Transpor-
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tation in any meetings or discussions held pur-
suant to such an order; and
‘‘(C) the determination by the Federal Avia-
tion Administration about the impact of inclem-
ent weather.
‘‘(4) COPY OF PARTICIPATION REQUEST FILED
WITH SECRETARY.—Before an air carrier may request
an order under paragraph (1), it shall file a request
with the Secretary, in such form and manner as the
Secretary may prescribe, to participate in the pro-
gram established under paragraph (1).
‘‘(5) DOT PARTICIPATION.—The Secretary shall
ensure that the Department is represented at any
meetings authorized under this subsection.
‘‘(c) EXEMPTION AUTHORIZED.—When the Secretary
finds that it is required by the public interest, the Secretary,
as part of an order issued under subsection (b)(1), shall
exempt a person affected by the order from the antitrust
laws to the extent necessary to allow the person to proceed
with the activities approved in the order.
‘‘(d) ANTITRUST LAWS DEFINED.—In this section, the
term ‘antitrust laws’ has the meaning given that term in
the first section of the Clayton Act (15 U.S.C. 12).
‘‘(e) SUNSET.—The authority of the Secretary to issue
an order under subsection (b)(1) of this section expires at
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the end of the 2-year period that begins 45 days after the
date of enactment of the Aviation Investment and Revital-
ization Vision Act. The Secretary may extend the 2-year
Period for an additional 2 years if the Secretary determines
that such an extension is necessary and in the public inter-
est. The Secretary shall notify the Senate Committee on
Commerce, Science, and Transportation, and to the House
of Representatives Committee on Transportation and Infra-
structure of any such extension.’’.
(b) CONFORMING AMENDMENT.—The chapter analysis
for chapter 417 is amended by inserting after the item relat-
ing to section 41722 the following new item:
‘‘41723. Delay reduction actions.’’.
SEC. 302. SMALL COMMUNITY AIR SERVICE DEVELOPMENT
PILOT PROGRAM.
(a) 3-YEAR
EXTENSION.—Section 41743(e)(2) is
amended—
(1) by striking ‘‘There is’’ and inserting ‘‘There
are’’;
(2) by striking ‘‘2001 and’’ and inserting
‘‘2001,’’;
(3) by striking ‘‘2003’’ and inserting ‘‘2003, and
$27,500,000 for each of fiscal years 2004, 2005, and
2006’’; and
(4) by striking ‘‘section.’’ and inserting ‘‘section,
not more than $275,000 per year of which may be
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used for administrative costs in fiscal years 2004
through 2006.’’.
(b) ADDITIONAL COMMUNITIES.—Section 41743(c)(4)
of such title is amended by striking ‘‘program.’’ and insert-
ing ‘‘program each year. No community, consortia of com-
munities, nor combination thereof may participate in the
program in support of the same project more than once,
but any community, consortia of communities, or combina-
tion thereof may apply, subsequent to such participation,
to participate in the program in support of a different
project.
SEC. 303. DOT STUDY OF COMPETITION AND ACCESS PROB-
LEMS AT LARGE AND MEDIUM HUB AIRPORTS.
(a) IN GENERAL.—The Secretary of Transportation
shall study competition and airline access problems at hub
airports (as defined in section 41731(a)(3)) of title 49,
United States Code, and medium hub airports (as defined
in section 41714(h)(9) of that title). In the study, the Sec-
retary shall examine, among other matters—
(1) gate usage and availability; and
(2) the effects of the pricing of gates and other
facilities on competition and access.
(b) REPORT.—The Secretary shall transmit a report
of the Secretary’s findings and conclusions together with
any recommendations, including legislative recommenda-
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tions, the Secretary may have for improving competition
and airline access at such airports to the Senate Committee
on Commerce, Science, and Transportation and the House
of Representatives Committee on Transportation and Infra-
structure within 6 months after the date of enactment of
this Act.
SEC. 304. COMPETITION DISCLOSURE REQUIREMENT FOR
LARGE AND MEDIUM HUB AIRPORTS.
Section 47107 is amended by adding at the end the
following:
‘‘(q) COMPETITION DISCLOSURE REQUIREMENT.—
‘‘(1) IN GENERAL.—The Secretary of Transpor-
tation may approve an application under this sub-
chapter for an airport development project grant for
a hub airport or a medium hub airport only if the
Secretary receives assurances that the airport sponsor
will provide the information required by paragraph
(2) at such time and in such form as the Secretary
may require.
‘‘(2) COMPETITIVE ACCESS.—If an airport denies
an application by an air carrier to receive access to
gates or other facilities at that airport in order to
provide service to the airport or to expand service at
the airport, then, within 30 days after denying the re-
quest, the airport sponsor shall—
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‘‘(A) notify the Secretary of the denial; and
‘‘(B) transmit a report to the Secretary
that—
‘‘(i) describes the request;
‘‘(ii) explains the reasons for the de-
nial; and
‘‘(iii) provides a time frame within
which, if any, the airport will be able to ac-
commodate the request.
‘‘(3) DEFINITIONS.—In this subsection:
‘‘(A) HUB AIRPORT.—The term ‘hub air-
port’ has the meaning given that term by section
41731(a)(3).
‘‘(B) MEDIUM
HUB
AIRPORT.—The term
‘medium hub airport’ has the meaning given
that term by section 41714(h)(9).’’.
SEC. 305. LOCATION OF SHUTTLE SERVICE AT RONALD
REAGAN WASHINGTON NATIONAL AIRPORT.
The Airports Authority (as defined in section 49103(1)
of title 49, United States Code) shall, in conjunction with
the Department of Transportation, conduct a study on the
feasibility of housing the gates used by all air carriers pro-
viding shuttle service from Ronald Reagan Washington Na-
tional Airport in the same terminal.
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SEC. 306. AIR CARRIERS REQUIRED TO HONOR TICKETS
FOR SUSPENDED SERVICE.
(a) IN GENERAL.—Section 145(a) of the Aviation and
Transportation Security Act of 2001 (49 U.S.C. 40101
note) is amended by adding at the end the following: ‘‘The
Secretary of Transportation shall give favorable consider-
ation to waiving the terms and conditions established by
this section, including those set forth in the guidance pro-
vided by the Department in notices, dated August 8, 2002,
November 14, 2002, and January 23, 2003, in cases where
remaining carriers operate additional flights to accommo-
date passengers whose service was suspended, interrupted,
or discontinued under circumstances described in the pre-
ceding sentence over routes located in isolated areas that
are unusually dependent on air transportation.’’.
(b) EXTENSION.—Section 145(c) of such Act (49
U.S.C. 40101 note) is amended by striking ‘‘more than’’
and all that follows through ‘‘after’’ and inserting ‘‘more
than 36 months after’’.
Subtitle B—Small Community and
Rural Air Service Revitalization
SEC. 351. REAUTHORIZATION OF ESSENTIAL AIR SERVICE
PROGRAM.
Section 41742(a) of title 49, United States Code, is
amended to read as follows:
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‘‘(a) IN GENERAL.—There are authorized to be appro-
priated to the Secretary of Transportation to carry out the
essential air service under this subchapter, $113,000,000 for
each of fiscal years 2004 through 2007, $50,000,000 of
which for each such year shall be derived from amounts re-
ceived by the Federal Aviation Administration credited to
the account established under section 45303 of this title or
otherwise provided to the Administration.’’.
SEC. 352. INCENTIVE PROGRAM.
(a) IN GENERAL.—Chapter 417 of title 49, United
States Code, is amended by adding at the end the following:
‘‘SUBCHAPTER IV—MARKETING INCENTIVE
PROGRAM
‘‘Sec. 41781. Purpose.
‘‘Sec. 41782. Marketing program.
‘‘Sec. 41783. State marketing assistance.
‘‘Sec. 41784. Definitions.
‘‘Sec. 41785. Authorization of appropriations.
‘‘§ 41781. Purposes
‘‘The purposes of this subchapter are—
‘‘(1) to enable essential air service communities
to increase boardings and the level of passenger usage
of airport facilities at an eligible place by providing
technical, financial, and other marketing assistance to
such communities and to States;
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‘‘(2) to reduce subsidy costs under subchapter II
of this chapter as a consequence of such increased
usage; and
‘‘(3) to provide such communities with opportu-
nities to obtain, retain, and improve transportation
services.
‘‘§ 41782. Marketing program
‘‘(a) IN GENERAL.—The Secretary of Transportation
shall establish a marketing incentive program for commu-
nities that receive subsidized service by an air carrier under
section 41733 under which the airport sponsor in such a
community may receive a grant of not more than $50,000
to develop and implement a marketing plan to increase pas-
senger boardings and the level of passenger usage of its air-
port facilities.
‘‘(b) MATCHING REQUIREMENT; SUCCESS BONUSES—
‘‘(1) IN GENERAL.—Except as provided in para-
graphs (2) and (3), not less than 25 percent of the
publicly financed costs associated with the marketing
plan shall come from non-Federal sources. For pur-
poses of this paragraph—
‘‘(A) the non-Federal portion of the publicly
financed costs may be derived from contributions
in kind; and
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‘‘(B) State or local matching contributions
may not be derived, directly or indirectly, from
Federal funds, but the use by a state or local gov-
ernment of proceeds from the sale of bonds to
provide the matching contribution is not consid-
ered to be a contribution derived directly or in-
directly from Federal funds, without regard to
the Federal income tax treatment of interest paid
on those bonds or the Federal income tax treat-
ment of those bonds.
‘‘(2) BONUS
FOR
25-PERCENT
INCREASE
IN
USAGE.—Except as provided in paragraph (3), if,
after any 12-month period during which a marketing
plan has been in effect, the Secretary determines that
the marketing plan has increased average monthly
boardings, or the level of passenger usage, at the air-
port facilities at the eligible place, by 25 percent or
more, then only 10 percent of the publicly financed
costs associated with the marketing plan shall be re-
quired to come from non-Federal sources for the fol-
lowing 12-month period.
‘‘(3) BONUS
FOR
50-PERCENT
INCREASE
IN
USAGE.—If, after any 12-month period during which
a marketing plan has been in effect, the Secretary de-
termines that the marketing plan has increased aver-
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age monthly boardings, or the level of passenger
usage, at the airport facilities at the eligible place, by
50 percent or more, then no portion of the publicly
financed costs associated with the marketing plan
shall be required to come from non-Federal sources for
the following 12-month period.
‘‘§ 41783. State marketing assistance
‘‘The Secretary of Transportation may provide up to
$50,000 in technical assistance to any State within which
an eligible point that receives subsidized service by an air
carrier under section 41733 is located for the purpose of
assisting the State and such communities to develop meth-
ods to increase boardings in such communities. At least 10
percent of the costs of the activity with which the assistance
is associated shall come from non-Federal sources, including
contributions in kind.
‘‘§ 41784. Definitions
‘‘In this subchapter:
‘‘(1) ELIGIBLE PLACE.—The term ‘eligible place’
has the meaning given that term in section
41731(a)(1), subject to the provisions of section 332 of
the Department of Transportation and Related Agen-
cies Appropriations Act, 2000 (49 U.S.C. 41731
note).
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‘‘(2) ELIGIBLE ESSENTIAL AIR SERVICE COMMU-
NITY.—The term ‘eligible essential air service commu-
nity’ means an eligible place that—
‘‘(A) submits an application to the Sec-
retary in such form, at such time, and con-
taining such information as the Secretary may
require, including a detailed marketing plan, or
specifications for the development of such a plan,
to increase average boardings, or the level of pas-
senger usage, at its airport facilities; and
‘‘(B) provides assurances, satisfactory to the
Secretary, that it is able to meet the non-Federal
funding requirements of section 41782(b)(1).
‘‘(3) PASSENGER
BOARDINGS.—The term ‘pas-
senger boardings’ has the meaning given that term by
section 47102(10).
‘‘(4) SPONSOR.—The term ‘sponsor’ has the
meaning given that term in section 47102(19).
‘‘§ 41785. Authorization of appropriations
‘‘There are authorized to be appropriated to the Sec-
retary of Transportation $12,000,000 for each of fiscal
years 2004 through 2006, to carry out this subchapter, not
more than $200,000 per year of which may be used for ad-
ministrative costs.’’.
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(b) CONFORMING AMENDMENT.—The chapter analysis
for chapter 417 of such title is amended by inserting after
the item relating to section 41767 the following:
‘‘SUBCHAPTER IV—MARKETING INCENTIVE PROGRAM
‘‘41781. Purpose.
‘‘41782. Marketing program.
‘‘41783. State marketing assistance.
‘‘41784. Definitions.
‘‘41785. Authorization of appropriations.’’.
SEC. 353. PILOT PROGRAMS.
(a) IN GENERAL.—Subchapter II of chapter 417 of
title 49, United States Code, is amended by adding at the
end the following:
‘‘§ 41745. Other pilot programs
‘‘(a) IN GENERAL.—If the entire amount authorized
to be appropriated to the Secretary of Transportation by
section 41785 is appropriated for fiscal years 2004 through
2007, the Secretary of Transportation shall establish pilot
programs that meet the requirements of this section for im-
proving service to communities receiving essential air serv-
ice assistance under this subchapter or consortia of such
communities.
‘‘(b) PROGRAMS AUTHORIZED.—
‘‘(1) COMMUNITY
FLEXIBILITY.—The Secretary
shall establish a pilot program for not more than 10
communities or consortia of communities under which
the airport sponsor of an airport serving the commu-
nity or consortium may elect to forego any essential
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air service assistance under preceding sections of this
subchapter for a 10-year period in exchange for a
grant from the Secretary equal in value to twice the
annual essential air service assistance received for the
most recently ended calendar year. Under the pro-
gram, and notwithstanding any provision of law to
the contrary, the Secretary shall make a grant to each
participating sponsor for use by the recipient for any
project that—
‘‘(A) is eligible for assistance under chapter
471;
‘‘(B) is located on the airport property; or
‘‘(C) will improve airport facilities in a
way that would make such facilities more usable
for general aviation.
‘‘(2) EQUIPMENT CHANGES.—
‘‘(A) IN GENERAL.—The Secretary shall es-
tablish a pilot program for not more than 10
communities or consortia of communities under
which, upon receiving a petition from the spon-
sor of the airport serving the community or con-
sortium, the Secretary shall authorize and re-
quest the essential air service provider for that
community or consortium to use smaller equip-
ment to provide the service and to consider in-
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creasing the frequency of service using such
smaller equipment. Before granting any such pe-
tition, the Secretary shall determine that pas-
senger safety would not be compromised by the
use of such smaller equipment. Any community
that participates in a pilot program under this
subparagraph is deemed to have waived the min-
imum 
service 
requirements 
under 
section
41732(b) for purposes of its participation in that
pilot program.
‘‘(B) ALTERNATIVE SERVICES.—For any 3
aiport sponsors participating in the program es-
tablished under subparagraph (A), the Secretary
may establish a pilot program under which—
‘‘(i) the Secretary provides 100 percent
Federal funding for reasonable levels of al-
ternative transportation services from the
eligible place to the nearest hub airport or
small hub airport;
‘‘(ii) the Secretary will authorize the
sponsor to use its essential air service sub-
sidy funds provided under preceding sec-
tions of this subchapter for any airport-re-
lated project that would improve airport fa-
cilities; and
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‘‘(iii) the sponsor may make an irrev-
ocable election to terminate its participa-
tion in the pilot program established under
this paragraph after 1 year.
‘‘(3) COST-SHARING.—The Secretary shall estab-
lish a pilot program under which the sponsors of air-
ports serving a community or consortium of commu-
nities share the cost of providing air transportation
service greater than the basic essential air service pro-
vided under this subchapter.
‘‘(c) CODE-SHARING.—Under the pilot program estab-
lished under subsection (a), the Secretary is authorized to
require air carriers providing service to participating com-
munities and major air carriers (as defined in section
41716(a)(2)) serving large hub airports (as defined in sec-
tion 41731(a)(3)) to participate in multiple code-share ar-
rangements consistent with normal industry practice when-
ever and wherever the Secretary determines that such mul-
tiple code-sharing arrangements would improve air trans-
portation services. The Secretary may not require air car-
riers to participate in such arrangements under this sub-
section for more than 10 such communities.
‘‘(d) TRACKING SERVICE.—The Secretary shall require
carriers providing subsidy for service under section 41733
to track changes in services, including on-time arrivals and
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departures, on such subsidized routes, and to report such
information to the Secretary on a semi-annual basis in
such form as the Secretary may require.
‘‘(e) ADMINISTRATIVE PROVISIONS.—In order to par-
ticipate in a pilot program established under this section,
the airport sponsor for a community or consortium of com-
munities shall submit an application to the Secretary in
such form, at such time, and containing such information
as the Secretary may require.’’.
(b) CONFORMING AMENDMENT.—The chapter analysis
for chapter 417 of such title is amended by inserting after
the item relating to section 41744 the following:
‘‘41745. Other pilot programs.’’.
SEC. 354. EAS PROGRAM AUTHORITY CHANGES.
(a) RATE RENEGOTIATION.—If the Secretary of Trans-
portation determines that essential air service providers are
experiencing significantly increased costs of providing serv-
ice under subchapter II of chapter 417 of title 49, United
States Code, the Secretary of Transportation may increase
the rates of compensation payable under that subchapter
within 30 days after the date of enactment of this Act with-
out regard to any agreements or requirements relating to
the renegotiation of contracts. For purposes of this sub-
section, the term ‘‘significantly increased costs’’ means an
average annual total unit cost increase (but not increases
in individual unit costs) of 10 percent or more in relation
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to the unit rates used to construct the subsidy rate, based
on the carrier’s internal audit of its financial statements.
(b) RETURNED FUNDS.—Notwithstanding any provi-
sion of law to the contrary, any funds made available under
subchapter II of chapter 417 of title 49, United States Code,
that are returned to the Secretary by an airport sponsor
because of decreased subsidy needs for essential air service
under that subchapter shall remain available to the Sec-
retary and may be used by the Secretary under that sub-
chapter to increase the frequency of flights at that airport.
(c) SMALL COMMUNITY AIR SERVICE DEVELOPMENT
PILOT PROGRAM.—Section 41743(h) of such title is amend-
ed by striking ‘‘an airport’’ and inserting ‘‘each airport’’.
SEC. 355. ONE-YEAR EXTENSION OF EAS ELIGIBILITY FOR
COMMUNITIES TERMINATED IN 2003 DUE TO
DECREASED AIR TRAVEL.
Notwithstanding the rate of subsidy limitation in sec-
tion 332 of the Department of Transportation and Related
Agencies Appropriations Act, 2000, the Secretary of Trans-
portation may not terminate an essential air service sub-
sidy provided under chapter 417 of title 49, United States
Code, before the end of calendar year 2004 for air service
to a community—
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(1) whose calendar year ridership for 2000 was
sufficient to keep the per passenger subsidy below that
limitation; and
(2) that has received notice that its subsidy will
be terminated during calendar year 2003 because de-
creased ridership has caused the subsidy to exceed
that limitation.
Subtitle C—Financial Improvement
Effort and Executive Compensa-
tion Report
SEC. 371. GAO REPORT ON AIRLINES ACTIONS TO IMPROVE
FINANCES AND ON EXECUTIVE COMPENSA-
TION.
(a) FINDING.—The Congress finds that the United
States government has by law provided substantial finan-
cial assistance to United States commercial airlines in the
form of war risk insurance and reinsurance and other eco-
nomic benefits and has imposed substantial economic and
regulatory burdens on those airlines. In order to determine
the economic viability of the domestic commercial airline
industry and to evaluate the need for additional measures
or the modification of existing laws, the Congress needs
more frequent information and independently verified in-
formation about the financial condition of these airlines.
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(b) SEMIANNUAL REPORTS.—The Comptroller General
shall prepare a semiannual report to the Congress—
(1) analyzing measures being taken by air car-
riers engaged in air transportation and intrastate air
transportation (as such terms are used in subtitle VII
of title 49, United States Code) to reduce costs and
to improve their earnings and profits and balance
sheets; and
(2) stating—
(A) the total compensation (as defined in
section 104(b) of the Air Transportation Safety
and System Stabilization Act (49 U.S.C. 40101
note)) paid by the air carrier to each officer or
employee of that air carrier to whom that section
applies for the period to which the report relates;
and
(B) the terms and value (determined on the
basis of the closing price of the stock on the last
business day of the period to which the report re-
lates) of any stock options awarded to such offi-
cer during that period.
(c) GAO AUTHORITY.—In order to compile the reports
required by subsection (b), the Comptroller General, or any
of the Comptroller General’s duly authorized representa-
tives, shall have access for the purpose of audit and exam-
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ination to any books, accounts, documents, papers, and
records of such air carriers that relate to the information
required to compile the reports. The Comptroller General
shall submit with each such report a certification as to
whether the Comptroller General has had access to sufficient
information to make informed judgments on the matters
covered by the report.
(d) REPORTS TO CONGRESS.—The Comptroller Gen-
eral shall transmit the compilation of reports required by
subsection (c) to the Senate Committee on Commerce,
Science, and Transportation and the House of Representa-
tives Committee on Transportation and Infrastructure.
TITLE IV—AVIATION SECURITY
SEC. 401. STUDY OF EFFECTIVENESS OF TRANSPORTATION
SECURITY SYSTEM.
(a) IN GENERAL.—The Secretary of Homeland Secu-
rity, in consultation with representatives of the airport
community, shall study the effectiveness of the aviation se-
curity system, including the air marshal program, hard-
ening of cockpit doors, and security screening of passengers,
checked baggage, and cargo.
(b) REPORT.—The Secretary shall transmit a report
of the Secretary’s findings and conclusions together with
any recommendations, including legislative recommenda-
tions, the Secretary may have for improving the effective-
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ness of aviation security to the Senate Committee on Com-
merce, Science, and Transportation and the House of Rep-
resentatives Committee on Transportation and Infrastruc-
ture within 6 months after the date of enactment of this
Act. In the report the Secretary shall also describe any rede-
ployment of Transportation Security Administration re-
sources based on those findings and conclusions. The Sec-
retary may submit the report to the Committees in classi-
fied and redacted form.
SEC. 402. AVIATION SECURITY CAPITAL FUND.
(a) IN GENERAL.—There may be established within the
Department of Homeland Security a fund to be known as
the Aviation Security Capital Fund. There are authorized
to be appropriated to the Fund up to $500,000,000 for each
of the fiscal years 2004 through 2007, such amounts to be
derived from fees received under section 44940 of title 49,
United States Code. Amounts in the fund shall be allocated
in such a manner that—
(1) 40 percent shall be made available for hub
airports;
(2) 20 percent shall be made available for me-
dium hub airports;
(3) 15 percent shall be made available for small
hub airports and nonhub airports; and
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(4) 25 percent may be distributed at the Sec-
retary’s discretion.
(b) PURPOSE.—Amounts in the Fund shall be avail-
able to the Secretary of Homeland Security to provide fi-
nancial assistance to airport sponsors to defray capital in-
vestment in transportation security at airport facilities in
accordance with the provisions of this section. The program
shall be administered in concert with the airport improve-
ment program under chapter 417 of title 49, United States
Code.
(c) APPORTIONMENT.—Amounts made available under
subsection (a)(1), (a)(2), or (a)(3) shall be apportioned
among the airports in each category in accordance with a
formula based on the ratio that passenger enplanements at
each airport in the category bears to the total passenger
enplanements at all airports in that category.
(d) LETTERS OF INTENT.—The Secretary of Homeland
Security, or his delegate, may execute letters of intent to
commit funding to airport sponsors from the Fund.
(e) CONFORMING AMENDMENT.—Section 44940(a)(1)
of title 49, United States Code, is amended by adding at
the end the following:
‘‘(H) The costs of security-related capital
improvements at airports.’’.
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(f) DEFINITIONS.—Any term used in this section that
is defined or used in chapter 417 of title 49, United States
Code, has the meaning given that term in that chapter.
SEC. 403. TECHNICAL AMENDMENTS RELATED TO SECU-
RITY-RELATED AIRPORT DEVELOPMENT.
(a) DEFINITION OF AIRPORT DEVELOPMENT.—Section
47102(3)(B) is amended—
(1) by inserting ‘‘and’’ after the semicolon in
clause (viii);
(2) by striking ‘‘circular; and’’ in clause (ix)
and inserting ‘‘circular.’’; and
(3) by striking clause (x).
(b) IMPROVEMENT OF FACILITIES AND EQUIPMENT.—
Section 308(a) of the Federal Aviation Reauthorization Act
of 1996 (49 U.S.C. 44901 note) is amended by striking
‘‘travel.’’ and inserting ‘‘travel if the improvements or
equipment will be owned and operated by the airport.’’.
SEC. 404. ARMED FORCES CHARTERS.
Section 132 of the Aviation and Transportation Secu-
rity Act (49 U.S.C. 44903 note) is amended by adding at
the end the following:
‘‘(c) EXEMPTION FOR ARMED FORCES CHARTERS.—
‘‘(1) IN GENERAL.—Subsections (a) and (b) of
this section, and chapter 449 of title 49, United
States Code, do not apply to passengers and property
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carried by aircraft when employed to provide charter
transportation to members of the armed forces.
‘‘(2) IN GENERAL.—The Secretary of Defense, in
consultation with the Secretary of Homeland Security
and the Secretary of Transportation, shall establish
security procedures relating to the operation of air-
craft when employed to provide charter transpor-
tation to members of the armed forces to or from an
airport described in section 44903(c) of title 49,
United States Code.
‘‘(3) ARMED
FORCES
DEFINED.—In this sub-
section, the term ‘armed forces’ has the meaning given
that term by section 101(a)(4) of title 10, United
States Code.’’.
SEC. 405. ARMING CARGO PILOTS AGAINST TERRORISM.
(a) SHORT TITLE.—This section may be cited as the
‘‘Arming Cargo Pilots Against Terrorism Act’’.
(b) FINDINGS.—Congress makes the following findings:
(1) During the 107th Congress, both the Senate
and the House of Representatives overwhelmingly
passed measures that would have armed pilots of
cargo aircraft.
(2) Cargo aircraft do not have Federal air mar-
shals, trained cabin crew, or determined passengers to
subdue terrorists.
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(3) Cockpit doors on cargo aircraft, if present at
all, largely do not meet the security standards re-
quired for commercial passenger aircraft.
(4) Cargo aircraft vary in size and many are
larger and carry larger amounts of fuel than the air-
craft hijacked on September 11, 2001.
(5) Aircraft cargo frequently contains hazardous
material and can contain deadly biological and chem-
ical agents and quantities of agents that cause com-
municable diseases.
(6) Approximately 12,000 of the nation’s 90,000
commercial pilots serve as pilots and flight engineers
on cargo aircraft.
(7) There are approximately 2,000 cargo flights
per day in the United States, many of which are
loaded with fuel for outbound international travel or
are inbound from foreign airports not secured by the
Transportation Security Administration.
(8) Aircraft transporting cargo pose a serious
risk as potential terrorist targets that could be used
as weapons of mass destruction.
(9) Pilots of cargo aircraft deserve the same abil-
ity to protect themselves and the aircraft they pilot as
other commercial airline pilots.
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(10) Permitting pilots of cargo aircraft to carry
firearms creates an important last line of defense
against a terrorist effort to commandeer a cargo air-
craft.
(c) SENSE OF CONGRESS.—It is the sense of Congress
that members of a flight deck crew of a cargo aircraft should
be armed with a firearm and taser to defend the cargo air-
craft against an attack by terrorists that could result in
the use of the aircraft as a weapon of mass destruction or
for other terrorist purposes.
(d) ARMING CARGO PILOTS AGAINST TERRORISM.—
Section 44921 of title 49, United States Code, is amended—
(1) in subsection (a), by striking ‘‘passenger’’
each place that it appears; and
(2) in subsection (k)—
(A) in paragraph (2)—
(i) by striking ‘‘or,’’ and all that fol-
lows; and
(ii) by inserting ‘‘or any other flight
deck crew member.’’; and
(B) by adding at the end the following new
paragraph:
‘‘(3) ALL-CARGO AIR TRANSPORTATION.—For the
purposes of this section, the term air transportation
includes all-cargo air transportation.’’.
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meet the same level of safety required of domestic repair
stations.
(c) SPECIFIC STANDARDS.—In carrying out subsection
(b), the Administrator shall, at a minimum, specifically en-
sure that foreign repair stations, as a condition of being
certified to work on United States registered aircraft—
(1) institute a program of drug and alcohol test-
ing of its employees working on United States reg-
istered aircraft and that such a program provides an
equivalent level of safety achieved by the drug and al-
cohol testing requirements that workers are subject to
at domestic repair stations;
(2) agree to be subject to the same type and level
of inspection by the Federal Aviation Administration
as domestic repair stations and that such inspections
occur without prior notice to the country in which the
station is located; and
(3) follow the security procedures established
under subsection (d).
(d) SECURITY AUDITS.—
(1) IN
GENERAL.—To ensure the security of
maintenance and repair work conducted on United
States aircraft and components at foreign repair sta-
tions, the Under Secretary, in consultation with the
Administrator, shall complete a security review and
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tion until such time as the Under Secretary de-
termines that the repair station maintains and
carries out effective security measures and has
addressed the security issues identified in the
audit, and transmits the determination to the
Administrator.
(B) IMMEDIATE
SECURITY
RISK.—If the
Under Secretary determines that a foreign repair
station poses an immediate security risk, the
Under Secretary shall notify the Administrator
of the determination. Upon receipt of the deter-
mination, the Administrator shall revoke the cer-
tification of the repair station.
(4) FAILURE TO MEET AUDIT DEADLINE.—If the
security audits required by paragraph (1) are not
completed on or before the date that is 180 days after
the date on which the Under Secretary issues regula-
tions under paragraph (6), the Administrator may
not certify, or renew the certification of, any foreign
repair station until such audits are completed.
(5) PRIORITY FOR AUDITS.—In conducting the
audits described in paragraph (1), the Under Sec-
retary and the Administrator shall give priority to
foreign repair stations located in countries identified