IB 
Union Calendar No. 72
108TH CONGRESS 
1ST SESSION H. R. 2115
[Report No. 108–143] 
To amend title 49, United States Code, to reauthorize programs for the 
Federal Aviation Administration, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 15, 2003
Mr. YOUNG of Alaska (for himself, Mr. MICA, Mr. OBERSTAR, and Mr. 
DEFAZIO) introduced the following bill; which was referred to the Com-
mittee on Transportation and Infrastructure 
JUNE 6, 2003 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on May 15, 2003] 
A BILL 
To amend title 49, United States Code, to reauthorize pro-
grams for the Federal Aviation Administration, and for 
other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Flight 100—Century of Aviation Reauthorization Act’’. 
(b) TABLE OF CONTENTS.—
Sec. 1. Short title; table of contents. 
Sec. 2. Amendments to title 49, United States Code. 
Sec. 3. Effective date. 
TITLE I—AUTHORIZATIONS 
Sec. 101. Federal Aviation Administration operations. 
Sec. 102. Air navigation facilities and equipment. 
Sec. 103. Airport planning and development and noise compatibility planning 
and programs. 
Sec. 104. Additional reauthorizations. 
Sec. 105. Insurance. 
Sec. 106. Pilot program for innovative financing for terminal automation re-
placement systems. 
TITLE II—AIRPORT PROJECT STREAMLINING 
Sec. 201. Short title. 
Sec. 202. Findings. 
Sec. 203. Promotion of new runways. 
Sec. 204. Airport project streamlining. 
Sec. 205. Governor’s certificate. 
Sec. 206. Construction of certain airport capacity projects. 
Sec. 207. Limitations. 
Sec. 208. Relationship to other requirements. 
TITLE III—FEDERAL AVIATION REFORM 
Sec. 301. Management advisory committee members. 
Sec. 302. Reorganization of the Air Traffic Services Subcommittee. 
Sec. 303. Clarification of the responsibilities of the Chief Operating Officer. 
Sec. 304. Small Business Ombudsman. 
Sec. 305. FAA purchase cards. 
TITLE IV—AIRLINE SERVICE IMPROVEMENTS 
Sec. 401. Improvement of aviation information collection. 
Sec. 402. Data on incidents and complaints involving passenger and baggage se-
curity screening. 
Sec. 403. Definitions. 
Sec. 404. Clarifications to procurement authority. 
Sec. 405. Low-emission airport vehicles and ground support equipment. 
Sec. 406. Streamlining of the passenger facility fee program. 
Sec. 407. Financial management of passenger facility fees. 
Sec. 408. Government contracting for air transportation. 
Sec. 409. Overflights of national parks. 
Sec. 410. Collaborative decisionmaking pilot program. 
Sec. 411. Availability of aircraft accident site information. 
Sec. 412. Slot exemptions at Ronald Reagan Washington National Airport.
Sec. 413. Notice concerning aircraft assembly. 
Sec. 414. Special rule to promote air service to small communities. 
Sec. 415. Small community air service. 
Sec. 416. Type certificates. 
Sec. 417. Design organization certificates. 
Sec. 418. Counterfeit or fraudulently represented parts violations. 
Sec. 419. Runway safety standards. 
Sec. 420. Availability of maintenance information. 
Sec. 421. Certificate actions in response to a security threat. 
Sec. 422. Flight attendant certification. 
Sec. 423. Civil penalty for closure of an airport without providing sufficient no-
tice. 
Sec. 424. Noise exposure maps. 
Sec. 425. Amendment of general fee schedule provision. 
Sec. 426. Improvement of curriculum standards for aviation maintenance techni-
cians. 
Sec. 427. Task force on future of air transportation system. 
Sec. 428. Air quality in aircraft cabins. 
Sec. 429. Recommendations concerning travel agents. 
Sec. 430. Task force on enhanced transfer of applications of technology for mili-
tary aircraft to civilian aircraft. 
Sec. 431. Reimbursement for losses incurred by general aviation entities. 
Sec. 432. Impasse procedures for National Association of Air Traffic Specialists. 
Sec. 433. FAA inspector training. 
Sec. 434. Prohibition on air traffic control privatization. 
Sec. 435. Airfares for members of the Armed Forces. 
Sec. 436. Air carriers required to honor tickets for suspended air service. 
Sec. 437. International air show. 
Sec. 438. Definition of air traffic controller. 
Sec. 439. Justification for air defense identification zone. 
Sec. 440. International air transportation. 
Sec. 441. Reimbursement of air carriers for certain screening and related activi-
ties. 
Sec. 442. General aviation flights at Ronald Reagan Washington National Air-
port. 
TITLE V—AIRPORT DEVELOPMENT 
Sec. 501. Definitions. 
Sec. 502. Replacement of baggage conveyor systems. 
Sec. 503. Security costs at small airports. 
Sec. 504. Withholding of program application approval. 
Sec. 505. Runway safety areas. 
Sec. 506. Disposition of land acquired for noise compatibility purposes. 
Sec. 507. Grant assurances. 
Sec. 508. Allowable project costs. 
Sec. 509. Apportionments to primary airports. 
Sec. 510. Cargo airports. 
Sec. 511. Considerations in making discretionary grants. 
Sec. 512. Flexible funding for nonprimary airport apportionments. 
Sec. 513. Use of apportioned amounts. 
Sec. 514. Military airport program. 
Sec. 515. Terminal development costs. 
Sec. 516. Contract towers. 
Sec. 517. Airport safety data collection.
Sec. 518. Airport privatization pilot program. 
Sec. 519. Innovative financing techniques. 
Sec. 520. Airport security program. 
Sec. 521. Low-emission airport vehicles and infrastructure. 
Sec. 522. Compatible land use planning and projects by State and local govern-
ments. 
Sec. 523. Prohibition on requiring airports to provide rent-free space for Federal 
Aviation Administration. 
Sec. 524. Midway Island Airport.
SEC. 2. AMENDMENTS TO TITLE 49, UNITED STATES CODE. 
Except as otherwise expressly provided, whenever in 
this Act an amendment or repeal is expressed in terms of 
an amendment to, or a repeal of, a section or other provi-
sion, the reference shall be considered to be made to a section 
or other provision of title 49, United States Code. 
SEC. 3. EFFECTIVE DATE. 
Except as otherwise expressly provided, this Act and 
the amendments made by this Act shall be effective on the 
date of enactment of this Act. 
TITLE I—AUTHORIZATIONS 
SEC. 101. FEDERAL AVIATION ADMINISTRATION OPER-
ATIONS. 
(a) IN GENERAL.—Section 106(k) is amended to read 
as follows: 
‘‘(k) AUTHORIZATION OF APPROPRIATIONS.—
‘‘(1) SALARIES, 
OPERATIONS, 
AND
MAINTE-
NANCE.—There is authorized to be appropriated to 
the Secretary of Transportation for salaries, oper-
ations, and maintenance of the Administration—
‘‘(A) $7,591,000,000 for fiscal year 2004;
‘‘(B) $7,732,000,000 for fiscal year 2005; 
‘‘(C) $7,889,000,000 for fiscal year 2006; 
and 
‘‘(D) $8,064,000,000 for fiscal year 2007. 
Such sums shall remain available until expended. 
‘‘(2) OPERATION OF CENTER FOR MANAGEMENT 
AND DEVELOPMENT.—Out of amounts appropriated 
under paragraph (1), such sums as may be necessary 
may be expended by the Center for Management De-
velopment of the Federal Aviation Administration to 
operate at least 200 courses each year and to support 
associated student travel for both residential and field 
courses. 
‘‘(3) AIR TRAFFIC MANAGEMENT SYSTEM.—Out 
of amounts appropriated under paragraph (1), such 
sums as may be necessary may be expended by the 
Federal Aviation Administration for the establish-
ment and operation of a new office to develop, in co-
ordination with the Department of Defense, the Na-
tional Aeronautics and Space Administration, and 
the Department of Homeland Security, the next gen-
eration air traffic management system and a transi-
tion plan for the implementation of that system. The 
office shall be known as the ‘Next Generation Air 
Transportation System Joint Program Office’.
‘‘(4) HELICOPTER
AND
TILTROTOR
PROCE-
DURES.—Out of amounts appropriated under para-
graph (1), such sums as may be necessary may be ex-
pended by the Federal Aviation Administration for 
the establishment of helicopter and tiltrotor approach 
and departure procedures using advanced tech-
nologies, such as the Global Positioning System and 
automatic dependent surveillance, to permit oper-
ations in adverse weather conditions to meet the needs 
of air ambulance services.
‘‘(5) ADDITIONAL AIR TRAFFIC CONTROLLERS.—
Out of amounts appropriated under paragraph (1), 
such sums as may be necessary may be expended to 
hire additional air traffic controllers in order to meet 
increasing air traffic demands and to address the an-
ticipated increase in the retirement of experienced air 
traffic controllers. 
‘‘(6) COMPLETION OF ALASKA AVIATION SAFETY 
PROJECT.—Out of amounts appropriated under para-
graph (1), $6,000,000 may be expended for the com-
pletion of the Alaska aviation safety project with re-
spect to the 3 dimensional mapping of Alaska’s main 
aviation corridors. 
‘‘(7) AVIATION
SAFETY
REPORTING
SYSTEM.—
Out of amounts appropriated under paragraph (1),
$3,400,000 may be expended on the Aviation Safety 
Reporting System.’’. 
(b) AIRLINE DATA AND ANALYSIS.—There is author-
ized to be appropriated to the Secretary of Transportation, 
out of the Airport and Airway Trust Fund established by 
section 9502 of the Internal Revenue Code of 1986 (26 
U.S.C. 9502), $3,971,000 for fiscal year 2004, $4,045,000 
for fiscal year 2005, $4,127,000 for fiscal year 2006, and 
$4,219,000 for fiscal year 2007 to gather airline data and 
conduct analyses of such data in the Bureau of Transpor-
tation Statistics of the Department of Transportation.
(c) HUMAN CAPITAL WORKFORCE STRATEGY.—
(1) DEVELOPMENT.—The Administrator of the 
Federal Aviation Administration shall develop a com-
prehensive human capital workforce strategy to deter-
mine the most effective method for addressing the need 
for more air traffic controllers that is called for in the 
June 2002 report of the General Accounting Office. 
(2) COMPLETION
DATE.—The Administrator 
shall complete development of the strategy not later 
than 1 year after the date of enactment of this Act. 
(3) REPORT.—Not later than 30 days after the 
date on which the strategy is completed, the Adminis-
trator shall transmit to Congress a report describing 
the strategy.
(d) GOALS AND OBJECTIVES OF AVIATION SAFETY RE-
PORTING SYSTEM.—Not later than 90 days after the date 
of enactment of this Act, the Administrator shall transmit 
to Congress a report on the long-term goals and objectives 
of the Aviation Safety Reporting System and how such sys-
tem interrelates with other safety reporting systems of the 
Federal Government. 
SEC. 102. AIR NAVIGATION FACILITIES AND EQUIPMENT. 
Section 48101 is amended—
(1) in subsection (a) by striking paragraphs (1) 
through (5) and inserting the following: 
‘‘(1) $3,138,000,000 for fiscal year 2004; 
‘‘(2) $2,993,000,000 for fiscal year 2005; 
‘‘(3) $3,053,000,000 for fiscal year 2006; and 
‘‘(4) $3,110,000,000 for fiscal year 2007.’’; 
(2) by striking subsection (b); 
(3) by redesignating (c) as subsection (b); 
(4) by striking subsections (d) and (e) and in-
serting the following: 
‘‘(c) ENHANCED SAFETY
AND SECURITY
FOR AIR-
CRAFT
OPERATIONS
IN
THE
GULF
OF
MEXICO.—Of 
amounts appropriated under subsection (a), such sums as 
may be necessary for fiscal years 2004 through 2007 may 
be used to expand and improve the safety, efficiency, and 
security of air traffic control, navigation, low altitude com-
munications and surveillance, and weather services in the 
Gulf of Mexico. 
‘‘(d) OPERATIONAL BENEFITS OF WAKE VORTEX ADVI-
SORY SYSTEM.—Of amounts appropriated under subsection 
(a), $20,000,000 for each of fiscal years 2004 through 2007 
may be used to document and demonstrate the operational 
benefits of a wake vortex advisory system. 
‘‘(e) 
GROUND-BASED
PRECISION
NAVIGATIONAL 
AIDS.—Of amounts appropriated under subsection (a), 
$20,000,000 for each of fiscal years 2004 to 2007 may be 
used to establish a program for the installation, operation, 
and maintenance of a closed-loop precision approach aid 
designed to improve aircraft accessibility at mountainous 
airports with limited land if the approach aid is able to 
provide curved and segmented approach guidance for noise 
abatement purposes and has been certified or approved by 
the Administrator.’’; and 
(5) in subsection (f)—
(A) by striking ‘‘for fiscal years beginning 
after September 30, 2000’’; and 
(B) by inserting ‘‘may be used’’ after ‘‘nec-
essary’’.
SEC. 103. AIRPORT PLANNING AND DEVELOPMENT AND 
NOISE COMPATIBILITY PLANNING AND PRO-
GRAMS. 
(a) AUTHORIZATION.—Section 48103 is amended—
(1) by striking ‘‘September 30, 1998’’ and insert-
ing ‘‘September 30, 2003’’; and 
(2) by striking paragraphs (1) through (5) and 
inserting: 
‘‘(1) $3,400,000,000 for fiscal year 2004; 
‘‘(2) $3,600,000,000 for fiscal year 2005; 
‘‘(3) $3,800,000,000 for fiscal year 2006; and 
‘‘(4) $4,000,000,000 for fiscal year 2007.’’. 
(b) OBLIGATIONAL AUTHORITY.—Section 47104(c) is 
amended by striking ‘‘September 30, 2003’’ and inserting 
‘‘September 30, 2007’’. 
SEC. 104. ADDITIONAL REAUTHORIZATIONS. 
(a) CONTRACT AIR TRAFFIC CONTROL TOWER PILOT 
PROGRAM.—Section 47124(b)(3)(E) is amended by striking 
‘‘$6,000,000 per fiscal year’’ and inserting ‘‘$6,500,000 for 
fiscal year 2004, $7,000,000 for fiscal year 2005, $7,500,000 
for fiscal year 2006, and $8,000,000 for fiscal year 2007’’. 
(b) 
SMALL
COMMUNITY
AIR
SERVICE.—Section 
41743(e)(2) is amended—
(1) by striking ‘‘and’’ the first place it appears 
and inserting a comma; and
(2) by inserting after ‘‘2003’’ the following ‘‘, 
and $35,000,000 for each of fiscal years 2004 through 
2008’’. 
(c) REGIONAL AIR SERVICE INCENTIVE PROGRAM.—
Section 41766 is amended by striking ‘‘2003’’ and inserting 
‘‘2007’’. 
(d) FUNDING FOR AVIATION PROGRAMS.—Section 106 
of the Wendell H. Ford Aviation Investment and Reform 
Act for the 21st Century (49 U.S.C. 48101 note) is amended 
by striking ‘‘2003’’ each place it appears and inserting 
‘‘2007’’. 
(e) DESIGN-BUILD CONTRACTING.—Section 139(e) of 
the Wendell H. Ford Aviation Investment and Reform Act 
for the 21st Century (49 U.S.C. 47104 note) is amended 
by striking ‘‘2003’’ and inserting ‘‘2007’’. 
(f) METROPOLITAN WASHINGTON AIRPORTS AUTHOR-
ITY.—Section 49108 is amended by striking ‘‘2004’’ and 
inserting ‘‘2007’’. 
SEC. 105. INSURANCE. 
(a) TERMINATION.—Section 44310 is amended to read 
as follows: 
‘‘§ 44310. Termination date 
‘‘Effective December 31, 2007, the authority of the Sec-
retary of Transportation to provide insurance and reinsur-
ance under this chapter shall be limited to—
‘‘(1) the operation of an aircraft by an air car-
rier or foreign air carrier in foreign air commerce or 
between at least 2 points, all of which are outside the 
United States; and 
‘‘(2) insurance obtained by a department, agen-
cy, or instrumentality of the United States under sec-
tion 44305.’’. 
(b) EXTENSION OF POLICIES.—Section 44302(f)(1) is 
amended by striking ‘‘through December 31, 2004,’’ and in-
serting ‘‘thereafter’’. 
(c) AIRCRAFT MANUFACTURER LIABILITY FOR THIRD 
PARTY CLAIMS ARISING OUT OF ACTS OF TERRORISM.—
Section 44303(b) is amended by adding at the end the fol-
lowing: ‘‘The Secretary may extend the provisions of this 
subsection to the United States manufacturer (as defined 
in section 44310) of the aircraft of the air carrier in-
volved.’’. 
(d) VENDORS, AGENTS, SUBCONTRACTORS, AND MANU-
FACTURERS.—
(1) IN GENERAL.—Chapter 443 is amended—
(A) by redesignating section 44310 (as 
amended by subsection (a) of this section) as sec-
tion 44311; and 
(B) by inserting after section 44309 the fol-
lowing:
‘‘§ 44310. Vendors, agents, subcontractors, and manu-
facturers 
‘‘(a) IN GENERAL.—The Secretary of Transportation 
may extend the application of any provision of this chapter 
to a loss by a vendor, agent, and subcontractor of an air 
carrier and a United States manufacturer of an aircraft 
used by an air carrier but only to the extent that the loss 
involved an aircraft of an air carrier. 
‘‘(b) UNITED STATES MANUFACTURER DEFINED.—In 
this section, the term ‘United States manufacturer’ means 
a manufacturer incorporated under the laws of a State of 
the United States and having its principal place of business 
in the United States.’’. 
(2) CONFORMING AMENDMENT.—The analysis for 
chapter 443 is amended by striking the item relating 
to section 44310 and inserting the following:
‘‘44310. Vendors, agents, subcontractors, and manufacturers. 
‘‘44311. Termination date.’’.
(e) TECHNICAL CORRECTIONS.—Effective November 
19, 2001, section 124(b) of the Aviation and Transportation 
Security Act (115 Stat. 631) is amended by striking ‘‘to 
carry out foreign policy’’ and inserting ‘‘to carry out the 
foreign policy’’.
SEC. 106. PILOT PROGRAM FOR INNOVATIVE FINANCING 
FOR TERMINAL AUTOMATION REPLACEMENT 
SYSTEMS. 
(a) IN GENERAL.—In order to test the cost-effectiveness 
and feasibility of long-term financing of modernization of 
major air traffic control systems, the Administrator of the 
Federal Aviation Administration may establish a pilot pro-
gram to test innovative financing techniques through 
amending a contract, subject to section 1341 of title 31, 
United States Code, of more than one, but not more than 
20, fiscal years to purchase and install terminal automa-
tion replacement systems for the Administration. Such 
amendments may be for more than one, but not more than 
10 fiscal years. 
(b) CANCELLATION.—A contract described in sub-
section (a) may include a cancellation provision if the Ad-
ministrator determines that such a provision is necessary 
and in the best interest of the United States. Any such pro-
vision shall include a cancellation liability schedule that 
covers reasonable and allocable costs incurred by the con-
tractor through the date of cancellation plus reasonable 
profit, if any, on those costs. Any such provision shall not 
apply if the contract is terminated by default of the con-
tractor. 
(c) CONTRACT PROVISIONS.—If feasible and prac-
ticable for the pilot program, the Administrator may make
an advance contract provision to achieve economic-lot pur-
chases and more efficient production rates. 
(d) LIMITATION.—The Administrator may not amend 
a contract under this section until the program for the ter-
minal automation replacement systems has been rebaselined 
in accordance with the acquisition management system of 
the Administration. 
(e) ANNUAL REPORTS.—At the end of each fiscal year 
during the term of the pilot program, the Administrator 
shall transmit to the Committee on Commerce, Science, and 
Transportation of the Senate and the Committee on Trans-
portation and Infrastructure of the House of Representa-
tives a report on how the Administrator has implemented 
in such fiscal year the pilot program, the number and types 
of contracts or contract amendments that are entered into 
under the program, and the program’s cost-effectiveness. 
(f) FUNDING.—Out of amounts appropriated under 
section 48101 for fiscal year 2004, $200,000,000 shall be 
used to carry out this section. 
TITLE II—AIRPORT PROJECT 
STREAMLINING 
SEC. 201. SHORT TITLE. 
This title may be cited as the ‘‘Airport Streamlining 
Approval Process Act of 2003’’.
SEC. 202. FINDINGS. 
Congress finds that—
(1) airports play a major role in interstate and 
foreign commerce; 
(2) congestion and delays at our Nation’s major 
airports have a significant negative impact on our 
Nation’s economy; 
(3) airport capacity enhancement projects at 
congested airports are a national priority and should 
be constructed on an expedited basis; 
(4) airport capacity enhancement projects must 
include an environmental review process that pro-
vides local citizenry an opportunity for consideration 
of and appropriate action to address environmental 
concerns; and 
(5) the Federal Aviation Administration, airport 
authorities, communities, and other Federal, State, 
and local government agencies must work together to 
develop a plan, set and honor milestones and dead-
lines, and work to protect the environment while sus-
taining the economic vitality that will result from the 
continued growth of aviation. 
SEC. 203. PROMOTION OF NEW RUNWAYS. 
Section 40104 is amended by adding at the end the 
following:
‘‘(c) AIRPORT CAPACITY ENHANCEMENT PROJECTS AT 
CONGESTED AIRPORTS.—In carrying out subsection (a), 
the Administrator shall take action to encourage the con-
struction of airport capacity enhancement projects at con-
gested airports as those terms are defined in section 
47178.’’. 
SEC. 204. AIRPORT PROJECT STREAMLINING. 
(a) IN GENERAL.—Chapter 471 is amended by insert-
ing after section 47153 the following: 
‘‘SUBCHAPTER III—AIRPORT PROJECT 
STREAMLINING 
‘‘§ 47171. DOT as lead agency 
‘‘(a) AIRPORT PROJECT REVIEW PROCESS.—The Sec-
retary of Transportation shall develop and implement a co-
ordinated review process for airport capacity enhancement 
projects at congested airports. 
‘‘(b) COORDINATED REVIEWS.—
‘‘(1) IN GENERAL.—The coordinated review proc-
ess under this section shall provide that all environ-
mental reviews, analyses, opinions, permits, licenses, 
and approvals that must be issued or made by a Fed-
eral agency or airport sponsor for an airport capac-
ity enhancement project at a congested airport will be 
conducted concurrently, to the maximum extent prac-
ticable, and completed within a time period estab-
lished by the Secretary, in cooperation with the agen-
cies identified under subsection (c) with respect to the 
project. 
‘‘(2) AGENCY
PARTICIPATION.—Each Federal 
agency identified under subsection (c) shall formulate 
and implement administrative, policy, and proce-
dural mechanisms to enable the agency to ensure com-
pletion of environmental reviews, analyses, opinions, 
permits, licenses, and approvals described in para-
graph (1) in a timely and environmentally respon-
sible manner. 
‘‘(c) IDENTIFICATION
OF
JURISDICTIONAL
AGEN-
CIES.—With respect to each airport capacity enhancement 
project at a congested airport, the Secretary shall identify, 
as soon as practicable, all Federal and State agencies that 
may have jurisdiction over environmental-related matters 
that may be affected by the project or may be required by 
law to conduct an environmental-related review or analysis 
of the project or determine whether to issue an environ-
mental-related permit, license, or approval for the project. 
‘‘(d) STATE AUTHORITY.—If a coordinated review 
process is being implemented under this section by the Sec-
retary with respect to a project at an airport within the 
boundaries of a State, the State, consistent with State law, 
may choose to participate in such process and provide that
all State agencies that have jurisdiction over environ-
mental-related matters that may be affected by the project 
or may be required by law to conduct an environmental-
related review or analysis of the project or determine wheth-
er to issue an environmental-related permit, license, or ap-
proval for the project, be subject to the process. 
‘‘(e) MEMORANDUM OF UNDERSTANDING.—The coordi-
nated review process developed under this section may be 
incorporated into a memorandum of understanding for a 
project between the Secretary and the heads of other Federal 
and State agencies identified under subsection (c) with re-
spect to the project and the airport sponsor. 
‘‘(f) EFFECT OF FAILURE TO MEET DEADLINE.—
‘‘(1) NOTIFICATION OF CONGRESS AND CEQ.—If 
the Secretary determines that a Federal agency, State 
agency, or airport sponsor that is participating in a 
coordinated review process under this section with re-
spect to a project has not met a deadline established 
under subsection (b) for the project, the Secretary 
shall notify, within 30 days of the date of such deter-
mination, the Committee on Transportation and In-
frastructure of the House of Representatives, the Com-
mittee on Commerce, Science, and Transportation of 
the Senate, the Council on Environmental Quality,
and the agency or sponsor involved about the failure 
to meet the deadline. 
‘‘(2) AGENCY REPORT.—Not later than 30 days 
after date of receipt of a notice under paragraph (1), 
the agency or sponsor involved shall submit a report 
to the Secretary, the Committee on Transportation 
and Infrastructure of the House of Representatives, 
the Committee on Commerce, Science, and Transpor-
tation of the Senate, and the Council on Environ-
mental Quality explaining why the agency or sponsor 
did not meet the deadline and what actions it intends 
to take to complete or issue the required review, anal-
ysis, opinion, permit, license, or approval. 
‘‘(g) PURPOSE AND NEED.—For any environmental 
review, analysis, opinion, permit, license, or approval that 
must be issued or made by a Federal or State agency that 
is participating in a coordinated review process under this 
section with respect to an airport capacity enhancement 
project at a congested airport and that requires an analysis 
of purpose and need for the project, the agency, notwith-
standing any other provision of law, shall be bound by the 
project purpose and need as defined by the Secretary. 
‘‘(h) ALTERNATIVES ANALYSIS.—The Secretary shall 
determine the reasonable alternatives to an airport capacity 
enhancement project at a congested airport. Any other Fed-
eral or State agency that is participating in a coordinated 
review process under this section with respect to the project 
shall consider only those alternatives to the project that the 
Secretary has determined are reasonable. 
‘‘(i) SOLICITATION
AND CONSIDERATION
OF COM-
MENTS.—In applying subsections (g) and (h), the Secretary 
shall solicit and consider comments from interested persons 
and governmental entities. 
‘‘(j) MONITORING BY TASK FORCE.—The Transpor-
tation Infrastructure Streamlining Task Force, established 
by Executive Order 13274 (67 Fed. Reg. 59449; relating 
to environmental stewardship and transportation infra-
structure project reviews), may monitor airport projects 
that are subject to the coordinated review process under this 
section. 
‘‘§ 47172. Categorical exclusions 
‘‘Not later than 120 days after the date of enactment 
of this section, the Secretary of Transportation shall develop 
and publish a list of categorical exclusions from the require-
ment that an environmental assessment or an environ-
mental impact statement be prepared under the National 
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) 
for projects at airports.
‘‘§ 47173. Access restrictions to ease construction 
‘‘At the request of an airport sponsor for a congested 
airport, the Secretary of Transportation may approve a re-
striction on use of a runway to be constructed at the airport 
to minimize potentially significant adverse noise impacts 
from the runway only if the Secretary determines that im-
position of the restriction—
‘‘(1) is necessary to mitigate those impacts and 
expedite construction of the runway; 
‘‘(2) is the most appropriate and a cost-effective 
measure to mitigate those impacts, taking into con-
sideration any environmental tradeoffs associated 
with the restriction; and 
‘‘(3) would not adversely affect service to small 
communities, adversely affect safety or efficiency of 
the national airspace system, unjustly discriminate 
against any class of user of the airport, or impose an 
undue burden on interstate or foreign commerce. 
‘‘§ 47174. Airport revenue to pay for mitigation 
‘‘(a) IN GENERAL.—Notwithstanding section 47107(b), 
section 47133, or any other provision of this title, the Sec-
retary of Transportation may allow an airport sponsor car-
rying out an airport capacity enhancement project at a 
congested airport to make payments, out of revenues gen-
erated at the airport (including local taxes on aviation
fuel), for measures to mitigate the environmental impacts 
of the project if the Secretary finds that—
‘‘(1) the mitigation measures are included as 
part of, or support, the preferred alternative for the 
project in the documentation prepared pursuant to 
the National Environmental Policy Act of 1969 (42 
U.S.C. 4321 et seq.); 
‘‘(2) the use of such revenues will provide a sig-
nificant incentive for, or remove an impediment to, 
approval of the project by a State or local govern-
ment; and 
‘‘(3) the cost of the mitigation measures is rea-
sonable in relation to the mitigation that will be 
achieved. 
‘‘(b) MITIGATION OF AIRCRAFT NOISE.—Mitigation 
measures described in subsection (a) may include the insu-
lation of residential buildings and buildings used primarily 
for educational or medical purposes to mitigate the effects 
of aircraft noise and the improvement of such buildings as 
required for the insulation of the buildings under local 
building codes. 
‘‘§ 47175. Airport funding of FAA staff 
‘‘(a) ACCEPTANCE OF SPONSOR-PROVIDED FUNDS.—
Notwithstanding any other provision of law, the Adminis-
trator of the Federal Aviation Administration may accept
funds from an airport sponsor, including funds provided 
to the sponsor under section 47114(c), to hire additional 
staff or obtain the services of consultants in order to facili-
tate the timely processing, review, and completion of envi-
ronmental activities associated with an airport development 
project. 
‘‘(b) ADMINISTRATIVE PROVISION.—Instead of pay-
ment from an airport sponsor from funds apportioned to 
the sponsor under section 47114, the Administrator, with 
agreement of the sponsor, may transfer funds that would 
otherwise be apportioned to the sponsor under section 47114 
to the account used by the Administrator for activities de-
scribed in subsection (a). 
‘‘(c) RECEIPTS CREDITED AS OFFSETTING COLLEC-
TIONS.—Notwithstanding section 3302 of title 31, any 
funds accepted under this section, except funds transferred 
pursuant to subsection (b)—
‘‘(1) shall be credited as offsetting collections to 
the account that finances the activities and services 
for which the funds are accepted; 
‘‘(2) shall be available for expenditure only to 
pay the costs of activities and services for which the 
funds are accepted; and 
‘‘(3) shall remain available until expended.
‘‘(d) MAINTENANCE OF EFFORT.—No funds may be ac-
cepted pursuant to subsection (a), or transferred pursuant 
to subsection (b), in any fiscal year in which the Federal 
Aviation Administration does not allocate at least the 
amount it expended in fiscal year 2002, excluding amounts 
accepted pursuant to section 337 of the Department of 
Transportation and Related Agencies Appropriations Act, 
2002 (115 Stat. 862), for the activities described in sub-
section (a). 
‘‘§ 47176. Authorization of appropriations 
‘‘In addition to the amounts authorized to be appro-
priated under section 106(k), there is authorized to be ap-
propriated to the Secretary of Transportation, out of the 
Airport and Airway Trust Fund established under section 
9502 of the Internal Revenue Code of 1986 (26 U.S.C. 
9502), $4,200,000 for fiscal year 2004 and for each fiscal 
year thereafter to facilitate the timely processing, review, 
and completion of environmental activities associated with 
airport capacity enhancement projects at congested air-
ports.
‘‘§ 47177. Designation of aviation safety and aviation 
security projects for priority environ-
mental review 
‘‘(a) IN GENERAL.—The Administrator of the Federal 
Aviation Administration may designate an aviation safety
or aviation security project for priority environmental re-
view. The Administrator may not delegate this designation 
authority. 
‘‘(b) PROJECT DESIGNATION CRITERIA.—The Admin-
istrator shall establish guidelines for the designation of an 
aviation safety or aviation security project for priority en-
vironmental review. Such guidelines shall include consider-
ation of—
‘‘(1) the importance or urgency of the project; 
‘‘(2) the potential for undertaking the environ-
mental review under existing emergency procedures 
under the National Environmental Policy Act of 1969 
(42 U.S.C. 4321 et seq.); 
‘‘(3) the need for cooperation and concurrent re-
views by other Federal or State agencies; and 
‘‘(4) the prospect for undue delay if the project 
is not designated for priority review. 
‘‘(c) COORDINATED ENVIRONMENTAL REVIEWS.—
‘‘(1) TIMELINES AND HIGH PRIORITY FOR CO-
ORDINATED ENVIRONMENTAL REVIEWS.—The Admin-
istrator, in consultation with the heads of affected 
agencies, shall establish specific timelines for the co-
ordinated environmental review of an aviation safety 
or aviation security project designated under sub-
section (a). Such timelines shall be consistent with the
timelines established in existing laws and regulations. 
Each Federal agency with responsibility for project 
environmental reviews, analyses, opinions, permits, 
licenses, and approvals shall accord any such review 
a high priority and shall conduct the review expedi-
tiously and, to the maximum extent possible, concur-
rently with other such reviews. 
‘‘(2) AGENCY
PARTICIPATION.—Each Federal 
agency identified under subsection (c) shall formulate 
and implement administrative, policy, and proce-
dural mechanisms to enable the agency to ensure com-
pletion of environmental reviews, analyses, opinions, 
permits, licenses, and approvals described in para-
graph (1) in a timely and environmentally respon-
sible manner. 
‘‘(d) STATE PARTICIPATION.—
‘‘(1) INVITATION TO PARTICIPATE.—If a priority 
environmental review process is being implemented 
under this section with respect to a project within the 
boundaries of a State with applicable State environ-
mental requirements and approvals, the Adminis-
trator shall invite the State to participate in the 
process. 
‘‘(2) STATE CHOICE.—A State invited to partici-
pate in a priority environmental review process, con-
sistent with State law, may choose to participate in 
such process and direct that all State agencies, which 
have jurisdiction by law to conduct an environmental 
review or analysis of the project to determine whether 
to issue an environmentally related permit, license, or 
approval for the project, be subject to the process. 
‘‘(e) FAILURE TO GIVE PRIORITY REVIEW.—
‘‘(1) NOTICE.—If the Secretary of Transpor-
tation determines that a Federal agency or a partici-
pating State is not complying with the requirements 
of this section and that such noncompliance is under-
mining the environmental review process, the Sec-
retary shall notify, within 30 days of such determina-
tion, the head of the Federal agency or, with respect 
to a State agency, the Governor of the State. 
‘‘(2) REPORT TO SECRETARY.—A Federal agency 
that receives a copy of a notification relating to that 
agency made by the Secretary under paragraph (1) 
shall submit, within 30 days after receiving such 
copy, a written report to the Secretary explaining the 
reasons for the situation described in the notification 
and what remedial actions the agency intends to take. 
‘‘(3) NOTIFICATION OF CEQ AND COMMITTEES.—
If the Secretary determines that a Federal agency has 
not satisfactorily addressed the problems within a
reasonable period of time following a notification 
under paragraph (1), the Secretary shall notify the 
Committee on Transportation and Infrastructure of 
the House of Representatives, the Committee on Com-
merce, Science and Transportation of the Senate, and 
the Council on Environmental Quality. 
‘‘(f) PROCEDURAL PROVISIONS.—The procedures set 
forth in subsections (c), (e), (g), (h), and (i) of section 47171 
shall apply with respect to an aviation safety or aviation 
security project under this section in the same manner and 
to the same extent as such procedures apply to an airport 
capacity enhancement project at a congested airport under 
section 47171. 
‘‘(g) DEFINITIONS.—In this section, the following defi-
nitions apply: 
‘‘(1) AVIATION
SAFETY
PROJECT.—The term 
‘aviation safety project’ means an aviation project 
that—
‘‘(A) has as its primary purpose reducing 
the risk of injury to persons or damage to air-
craft and property, as determined by the Admin-
istrator; and 
‘‘(B)(i) is needed to respond to a rec-
ommendation from the National Transportation 
Safety Board; or
‘‘(ii) is necessary for an airport to comply 
with part 139 of title 14, Code of Federal Regu-
lations (relating to airport certification). 
‘‘(2) AVIATION
SECURITY
PROJECT.—The term 
‘aviation security project’ means a security project at 
an airport required by the Department of Homeland 
Security. 
‘‘(3) FEDERAL
AGENCY.—The term ‘Federal 
agency’ means a department or agency of the United 
States Government. 
‘‘§ 47178. Definitions 
‘‘In this subchapter, the following definitions apply: 
‘‘(1) AIRPORT
SPONSOR.—The term ‘airport 
sponsor’ has the meaning given the term ‘sponsor’ 
under section 47102. 
‘‘(2) CONGESTED AIRPORT.—The term ‘congested 
airport’ means an airport that accounted for at least 
1 percent of all delayed aircraft operations in the 
United States in the most recent year for which such 
data is available and an airport listed in table 1 of 
the Federal Aviation Administration’s Airport Capac-
ity Benchmark Report 2001. 
‘‘(3) 
AIRPORT
CAPACITY
ENHANCEMENT 
PROJECT.—The term ‘airport capacity enhancement 
project’ means—
‘‘(A) a project for construction or extension 
of a runway, including any land acquisition, 
taxiway, or safety area associated with the run-
way or runway extension; and 
‘‘(B) 
such 
other 
airport 
development 
projects as the Secretary may designate as facili-
tating a reduction in air traffic congestion and 
delays.’’. 
(b) CONFORMING
AMENDMENT.—The analysis for 
chapter 471 of such title is amended by adding at the end 
the following:
‘‘SUBCHAPTER III—AIRPORT PROJECT STREAMLINING 
‘‘47171. DOT as lead agency. 
‘‘47172. Categorical exclusions. 
‘‘47173. Access restrictions to ease construction. 
‘‘47174. Airport revenue to pay for mitigation. 
‘‘47175. Airport funding of FAA staff. 
‘‘47176. Authorization of appropriations. 
‘‘47177. Designation of aviation safety and aviation security projects for priority 
environmental review. 
‘‘47178. Definitions.’’.
SEC. 205. GOVERNOR’S CERTIFICATE. 
Section 47106(c) of title 49, United States Code, is 
amended—
(1) in paragraph (1)—
(A) by inserting ‘‘and’’ after the semicolon 
at the end of subparagraph (A)(ii); 
(B) by striking subparagraph (B); and 
(C) by redesignating subparagraph (C) as 
subparagraph (B);
(2) in paragraph (2)(A) by striking ‘‘stage 2’’ 
and inserting ‘‘stage 3’’; 
(3) by striking paragraph (4); and 
(4) by redesignating paragraph (5) as para-
graph (4). 
SEC. 206. CONSTRUCTION OF CERTAIN AIRPORT CAPACITY 
PROJECTS. 
Section 47504(c)(2) of title 49, United States Code, is 
amended—
(1) by moving subparagraphs (C) and (D) 2 ems 
to the right; 
(2) by striking ‘‘and’’ at the end of subpara-
graph (C); 
(3) by striking the period at the end of subpara-
graph (D) and inserting ‘‘; and’’; and 
(4) by adding at the end the following: 
‘‘(E) to an airport operator of a congested 
airport (as defined in section 47178) and a unit 
of local government referred to in paragraph 
(1)(B) of this subsection to carry out a project 
to mitigate noise in the area surrounding the 
airport if the project is included as a commit-
ment in a record of decision of the Federal Avia-
tion Administration for an airport capacity en-
hancement project (as defined in section 47178)
even if that airport has not met the requirements 
of part 150 of title 14, Code of Federal Regula-
tions.’’. 
SEC. 207. LIMITATIONS. 
Nothing in this title, including any amendment made 
by this title, shall preempt or interfere with—
(1) any practice of seeking public comment; 
(2) any power, jurisdiction, or authority that a 
State agency or an airport sponsor has with respect 
to carrying out an airport capacity enhancement 
project; and 
(3) any obligation to comply with the provisions 
of the National Environmental Policy Act of 1969 (42 
U.S.C. 4371 et seq.) and the regulations issued by the 
Council on Environmental Quality to carry out such 
Act. 
SEC. 208. RELATIONSHIP TO OTHER REQUIREMENTS. 
The coordinated review process required under the 
amendments made by this title shall apply to an airport 
capacity enhancement project at a congested airport wheth-
er or not the project is designated by the Secretary of Trans-
portation as a high-priority transportation infrastructure 
project under Executive Order 13274 (67 Fed. Reg. 59449; 
relating to environmental stewardship and transportation 
infrastructure project reviews).
TITLE III—FEDERAL AVIATION 
REFORM 
SEC. 301. MANAGEMENT ADVISORY COMMITTEE MEMBERS. 
Section 106(p) is amended—
(1) in the subsection heading by inserting ‘‘AND 
AIR TRAFFIC SERVICES BOARD’’ after ‘‘COUNCIL’’; 
and 
(2) in paragraph (2)—
(A) by striking ‘‘consist of’’ and all that fol-
lows through ‘‘members, who’’ and inserting 
‘‘consist of 13 members, who’’; 
(B) by inserting after ‘‘Senate’’ in subpara-
graph (C)(i) ‘‘, except that initial appointments 
made after May 1, 2003, shall be made by the 
Secretary of Transportation’’; 
(C) by striking the semicolon at the end of 
subparagraph (C)(ii) and inserting ‘‘; and’’; and 
(D) by striking ‘‘employees, by—’’ in sub-
paragraph (D) and all that follows through the 
period at the end of subparagraph (E) and in-
serting ‘‘employees, by the Secretary of Trans-
portation.’’. 
SEC. 302. REORGANIZATION OF THE AIR TRAFFIC SERVICES 
SUBCOMMITTEE. 
Section 106(p) is amended—
(1) in paragraph (3)—
(A) by striking ‘‘(A) NO FEDERAL OFFICER 
OR EMPLOYEE.—’’; 
(B) by striking ‘‘or (2)(E)’’ and inserting 
‘‘or to the Air Traffic Services Board’’; and 
(C) by striking subparagraphs (B) and (C); 
(2) in paragraph (4)(C) by inserting ‘‘or Air 
Traffic Services Board’’ after ‘‘Council’’ each place it 
appears; 
(3) in paragraph (5) by inserting ‘‘, the Air 
Traffic Services Board,’’ after ‘‘Council’’; 
(4) in paragraph (6)(C)—
(A) by striking ‘‘SUBCOMMITTEE’’ in the 
subparagraph heading and inserting ‘‘BOARD’’; 
(B) by striking ‘‘member’’ and inserting 
‘‘members’’; 
(C) by striking ‘‘under paragraph (2)(E)’’ 
the first place it appears and inserting ‘‘to the 
Air Traffic Services Board’’; and 
(D) by striking ‘‘of the members first’’ and 
all that follows through the period at the end and 
inserting ‘‘the first members of the Board shall 
be the members of the Air Traffic Services Sub-
committee of the Council on the day before the 
date of enactment of the Flight 100—Century of
Aviation Reauthorization Act who shall serve as 
members of the Board until their respective 
terms as members of the Subcommittee would 
have ended under this subparagraph, as in effect 
on such day.’’; 
(5) in paragraph (6)(D) by striking ‘‘under 
paragraph (2)(E)’’ and inserting ‘‘to the Board’’; 
(6) in paragraph (6)(E) by inserting ‘‘or Board’’ 
after ‘‘Council’’; 
(7) in paragraph (6)(F) by inserting ‘‘of the 
Council or Board’’ after ‘‘member’’; 
(8) in the second sentence of subparagraph 
(6)(G)—
(A) by striking ‘‘Council’’ and inserting 
‘‘Board’’; and 
(B) by striking ‘‘appointed under para-
graph (2)(E)’’; 
(9) in paragraph (6)(H)—
(A) by striking ‘‘SUBCOMMITTEE’’ in the 
subparagraph heading and inserting ‘‘BOARD’’; 
(B) by striking ‘‘under paragraph (2)(E)’’ 
in clause (i) and inserting ‘‘to the Board’’; and 
(C) by striking ‘‘Air Traffic Services Sub-
committee’’ and inserting ‘‘Board’’; 
(10) in paragraph (6)(I)(i)—
(A) by striking ‘‘appointed under para-
graph (2)(E) is’’ and inserting ‘‘is serving as’’; 
and 
(B) by striking ‘‘Subcommittee’’ and insert-
ing ‘‘Board’’; 
(11) in paragraph (6)(I)(ii)—
(A) by striking ‘‘appointed under para-
graph (2)(E)’’ and inserting ‘‘who is a member 
of the Board’’; and 
(B) by striking ‘‘Subcommittee’’ and insert-
ing ‘‘Board’’; 
(12) in paragraph (6)(K) by inserting ‘‘or 
Board’’ after ‘‘Council’’; 
(13) in paragraph (6)(L) by inserting ‘‘or 
Board’’ after ‘‘Council’’ each place it appears; and 
(14) in paragraph (7)—
(A) by striking ‘‘SUBCOMMITTEE’’ in the 
paragraph heading and inserting ‘‘BOARD’’; 
(B) by striking subparagraph (A) and in-
serting the following: 
‘‘(A) ESTABLISHMENT.—The Administrator 
shall establish a board that is independent of the 
Council by converting the Air Traffic Services 
Subcommittee of the Council, as in effect on the 
day before the date of enactment of the Flight
100—Century of Aviation Reauthorization Act, 
into such board. The board shall be known as the 
Air Traffic Services Board (in this subsection re-
ferred to as the ‘Board’).’’; 
(C) by redesignating subparagraphs (B) 
through (F) as subparagraphs (D) through (H), 
respectively; 
(D) by inserting after subparagraph (A) the 
following: 
‘‘(B) MEMBERSHIP AND QUALIFICATIONS.—
Subject to paragraph (6)(C), the Board shall 
consist of 5 members, one of whom shall be the 
Administrator and shall serve as chairperson. 
The remaining members shall be appointed by 
the President with the advice and consent of the 
Senate and—
‘‘(i) shall have a fiduciary responsi-
bility to represent the public interest; 
‘‘(ii) shall be citizens of the United 
States; and 
‘‘(iii) shall be appointed without re-
gard to political affiliation and solely on 
the basis of their professional experience 
and expertise in one or more of the fol-
lowing areas and, in the aggregate, should
collectively bring to bear expertise in all of 
the following areas: 
‘‘(I) Management of large service 
organizations. 
‘‘(II) Customer service. 
‘‘(III) Management of large pro-
curements. 
‘‘(IV) Information and commu-
nications technology. 
‘‘(V) Organizational development. 
‘‘(VI) Labor relations. 
‘‘(C) 
PROHIBITIONS
ON
MEMBERS
OF 
BOARD.—No member of the Board may—
‘‘(i) have a pecuniary interest in, or 
own stock in or bonds of, an aviation or 
aeronautical enterprise, except an interest 
in a diversified mutual fund or an interest 
that is exempt from the application of sec-
tion 208 of title 18; 
‘‘(ii) engage in another business 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) by striking ‘‘Subcommittee’’ each place 
it appears in subparagraphs (D) and (E) (as re-
designated by subparagraph (C) of this para-
graph) and inserting ‘‘Board’’; 
(F) by striking ‘‘approve’’ in subparagraph 
(E)(v)(I) (as so redesignated) and inserting 
‘‘make recommendations on’’; 
(G) by striking ‘‘request’’ in subparagraph 
(E)(v)(II) (as so redesignated) and inserting 
‘‘recommendations’’; 
(H) by striking ‘‘ensure that the budget re-
quest supports’’ in subparagraph (E)(v)(III) (as 
so redesignated) and inserting ‘‘base such budget 
recommendations on’’; 
(I) by striking ‘‘The Secretary shall submit’’ 
in subparagraph (E) (as so redesignated) and all 
that follows through the period at the end of such 
subparagraph (E) and inserting ‘‘The Secretary 
shall submit the budget recommendations re-
ferred to in clause (v) to the President who shall 
transmit such recommendations to the Com-
mittee on Transportation and Infrastructure and 
the Committee on Appropriations of the House of 
Representatives and the Committee on Com-
merce, Science, and Transportation and the
Committee on Appropriations of the Senate to-
gether with the annual budget request of the Fed-
eral Aviation Administration.’’; 
(J) by striking subparagraph (F) (as so re-
designated) and inserting the following: 
‘‘(F) BOARD
PERSONNEL
MATTERS.—The 
Board may appoint and terminate any per-
sonnel that may be necessary to enable the Board 
to perform its duties, and may procure tem-
porary and intermittent services under section 
40122.’’; 
(K) in subparagraph (G) (as so redesig-
nated)—
(i) by striking clause (i); 
(ii) by redesignating clauses (ii), (iii), 
and (iv) as clauses (i), (ii), and (iii), re-
spectively; and 
(iii) by striking ‘‘Subcommittee’’ each 
place it appears in clauses (i), (ii), and 
(iii) (as so redesignated) and inserting 
‘‘Board’’; 
(L) in subparagraph (H) (as so redesig-
nated)—
(i) by striking ‘‘Subcommittee’’ each 
place it appears and inserting ‘‘Board’’;
(ii) by striking ‘‘Administrator, the 
Council’’ each place it appears in clauses 
(i) and (ii) and inserting ‘‘Secretary’’; and 
(iii) in clause (ii) by striking ‘‘(B)(i)’’ 
and inserting ‘‘(D)(i)’’; and 
(M) by adding at the end the following: 
‘‘(I) AUTHORIZATION.—There are author-
ized to be appropriated to the Board such sums 
as may be necessary for the Board to carry out 
its activities.’’. 
SEC. 303. CLARIFICATION OF THE RESPONSIBILITIES OF 
THE CHIEF OPERATING OFFICER. 
Section 106(r) is amended—
(1) in each of paragraphs (1)(A) and (2)(A) by 
striking ‘‘Air Traffic Services Subcommittee of the 
Aviation Management Advisory Council’’ and insert-
ing ‘‘Air Traffic Services Board’’; 
(2) in paragraph (2)(B) by inserting ‘‘in’’ before 
‘‘paragraph (3).’’; 
(3) in paragraph (3) by striking ‘‘Air Traffic 
Control Subcommittee of the Aviation Management 
Advisory Committee’’ and inserting ‘‘Air Traffic 
Services Board’’; 
(4) in paragraph (4) by striking ‘‘Transpor-
tation and Congress’’ and inserting ‘‘Transportation,
the Committee on Transportation and Infrastructure 
of the House of Representatives, and the Committee 
on Commerce, Science, and Transportation of the 
Senate’’; 
(5) in paragraph (5)(A)—
(A) by striking ‘‘develop a’’ and inserting 
‘‘implement the’’; and 
(B) by striking ‘‘, including the establish-
ment of’’ and inserting ‘‘in order to further’’; 
(6) in paragraph (5)(B)—
(A) by striking ‘‘review’’ and all that fol-
lows through ‘‘Administration,’’ and inserting 
‘‘oversee the day-to-day operational functions of 
the Administration for air traffic control,’’; 
(B) by striking ‘‘and’’ at the end of clause 
(ii); 
(C) by striking the period at the end of 
clause (iii) and inserting ‘‘; and’’; and 
(D) by adding at the end the following: 
‘‘(iv) the management of cost-reimburs-
able contracts.’’; 
(7) in paragraph (5)(C)(i) by striking ‘‘prepared 
by the Administrator’’;
(8) in paragraph (5)(C)(ii) by striking ‘‘and the 
Secretary of Transportation’’ and inserting ‘‘and the 
Board’’; and 
(9) in paragraph (5)(C)(iii)—
(A) by inserting ‘‘agency’s’’ before ‘‘an-
nual’’; and 
(B) by striking ‘‘developed under subpara-
graph (A) of this subsection.’’ and inserting ‘‘for 
air traffic control services.’’. 
SEC. 304. SMALL BUSINESS OMBUDSMAN. 
Section 106 is amended by adding at the end the fol-
lowing: 
‘‘(s) SMALL BUSINESS OMBUDSMAN.—
‘‘(1) ESTABLISHMENT.—There shall be in the 
Administration a Small Business Ombudsman. 
‘‘(2) 
GENERAL
DUTIES
AND
RESPONSIBIL-
ITIES.—The Ombudsman shall—
‘‘(A) be appointed by the Administrator; 
‘‘(B) serve as a liaison with small busi-
nesses in the aviation industry; 
‘‘(C) be consulted when the Administrator 
proposes regulations that may affect small busi-
nesses in the aviation industry;
‘‘(D) provide assistance to small businesses 
in resolving disputes with the Administration; 
and 
‘‘(E) report directly to the Administrator.’’. 
SEC. 305. FAA PURCHASE CARDS. 
(a) IN GENERAL.—The Administrator of the Federal 
Aviation Administration shall take appropriate actions to 
implement the recommendations contained in the report of 
the General Accounting Office entitled ‘‘FAA Purchase 
Cards: Weak Controls Resulted in Instances of Improper 
and Wasteful Purchases and Missing Assets’’, numbered 
GAO–03–405 and dated March 21, 2003. 
(b) REPORT.—Not later than 1 year after the date of 
enactment of this Act, the Administrator shall transmit to 
Congress a report containing a description of the actions 
taken by the Administrator under this section. 
TITLE IV—AIRLINE SERVICE 
IMPROVEMENTS 
SEC. 401. IMPROVEMENT OF AVIATION INFORMATION COL-
LECTION. 
(a) IN GENERAL.—Section 329(b)(1) is amended by 
striking ‘‘except that in no case’’ and all that follows 
through the semicolon at the end. 
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect on the date of the issuance of
a final rule to modernize the Origin and Destination Sur-
vey of Airline Passenger Traffic, pursuant to the Advance 
Notice of Proposed Rulemaking published July 15, 1998 
(Regulation Identifier Number 2105–AC71), that reduces 
the reporting burden for air carriers through electronic fil-
ing of the survey data collected under section 329(b)(1) of 
title 49, United States Code. 
SEC. 402. DATA ON INCIDENTS AND COMPLAINTS INVOLV-
ING PASSENGER AND BAGGAGE SECURITY 
SCREENING. 
Section 329 is amended by adding at the end the fol-
lowing: 
‘‘(e) INCIDENTS
AND COMPLAINTS INVOLVING PAS-
SENGER AND BAGGAGE SECURITY SCREENING.—
‘‘(1) PUBLICATION OF DATA.—The Secretary of 
Transportation shall publish data on incidents and 
complaints involving passenger and baggage security 
screening in a manner comparable to other consumer 
complaint and incident data. 
‘‘(2) MONTHLY REPORTS FROM SECRETARY OF 
HOMELAND
SECURITY.—To assist the Secretary of 
Transportation in the publication of data under 
paragraph (1), the Secretary of Homeland Security 
shall submit monthly to the Secretary of Transpor-
tation a report on the number of complaints about se-
curity screening received by the Secretary of Home-
land Security.’’. 
SEC. 403. DEFINITIONS. 
(a) IN GENERAL.—Section 40102(a) is amended—
(1) by redesignating paragraphs (38) through 
(42) as paragraphs (43) through (47), respectively; 
(2) by inserting after paragraph (37) the fol-
lowing: 
‘‘(42) ‘small hub airport’ means a commercial 
service airport (as defined in section 47102) that has 
at least 0.05 percent but less than 0.25 percent of the 
passenger boardings.’’; 
(3) by redesignating paragraphs (33) through 
(37) as paragraphs (37) through (41) respectively; 
(4) by inserting after paragraph (32) the fol-
lowing: 
‘‘(36) ‘passenger boardings’—
‘‘(A) means, unless the context indicates 
otherwise, revenue passenger boardings in the 
United States in the prior calendar year on an 
aircraft in service in air commerce, as the Sec-
retary determines under regulations the Sec-
retary prescribes; and 
‘‘(B) includes passengers who continue on 
an aircraft in international flight that stops at
an airport in the 48 contiguous States, Alaska, 
or Hawaii for a nontraffic purpose.’’; 
(5) by redesignating paragraph (32) as para-
graph (35); 
(6) by inserting after paragraph (31) the fol-
lowing: 
‘‘(34) ‘nonhub airport’ means a commercial serv-
ice airport (as defined in section 47102) that has less 
than 0.05 percent of the passenger boardings.’’; 
(7) by redesignating paragraphs (30) and (31) 
as paragraphs (32) and (33), respectively; 
(8) by inserting after paragraph (29) the fol-
lowing: 
‘‘(31) ‘medium hub airport’ means a commercial 
service airport (as defined in section 47102) that has 
at least 0.25 percent but less than 1.0 percent of the 
passenger boardings.’’; 
(9) by redesignating paragraph (29) as para-
graph (30); and 
(10) by inserting after paragraph (28) the fol-
lowing: 
‘‘(29) ‘large hub airport’ means a commercial 
service airport (as defined in section 47102) that has 
at least 1.0 percent of the passenger boardings.’’. 
(b) CONFORMING AMENDMENTS.—
(1) AIR SERVICE TERMINATION NOTICE.—Section 
41719(d) is amended—
(A) by striking paragraph (1); and 
(B) 
by 
redesignating 
paragraphs 
(2) 
through (5) as paragraphs (1) through (4), re-
spectively. 
(2) SMALL COMMUNITY AIR SERVICE.—Section 
41731(a) is amended by striking paragraphs (3) 
through (5). 
(3) AIRPORTS NOT RECEIVING SUFFICIENT SERV-
ICE.—Section 41743 is amended—
(A) in subsection (c)(1) by striking ‘‘(as 
that term is defined in section 41731(a)(5))’’; 
and 
(B) in subsection (f) by striking ‘‘(as de-
fined in section 41731(a)(3))’’. 
(4) PRESERVATION
OF
BASIC
ESSENTIAL
AIR 
SERVICE AT SINGLE CARRIER DOMINATED HUB AIR-
PORTS.—Section 41744(b) is amended by striking 
‘‘(as defined in section 41731)’’. 
(5) REGIONAL
AIR
SERVICE
INCENTIVE
PRO-
GRAM.—Section 41762 is amended—
(A) by striking paragraphs (11) and (15); 
and
(B) by redesignating paragraphs (12), (13), 
(14), and (16) as paragraphs (11), (12), (13), 
and (14), respectively. 
SEC. 404. CLARIFICATIONS TO PROCUREMENT AUTHORITY. 
(a) DUTIES
AND
POWERS.—Section 40110(c) is 
amended—
(1) by striking ‘‘Administration—’’ and all that 
follows through ‘‘(2) may—’’ and inserting ‘‘Adminis-
tration may—’’; 
(2) by striking subparagraph (D); 
(3) by redesignating subparagraphs (A), (B), 
(C), (E), and (F) as paragraphs (1), (2), (3), (4), and 
(5) respectively; and 
(4) by moving such paragraphs (1) through (5) 
2 ems to the left. 
(b) ACQUISITION
MANAGEMENT
SYSTEM.—Section 
40110(d) is amended—
(1) in paragraph (1)—
(A) by striking ‘‘, not later than January 
1, 1996,’’; and 
(B) by striking ‘‘provides for more timely 
and cost-effective acquisitions of equipment and 
materials.’’ and inserting the following: 
‘‘provides for—
‘‘(A) more timely and cost-effective acquisi-
tions of equipment, services, property, and mate-
rials; and 
‘‘(B) the resolution of bid protests and con-
tract disputes related thereto, using consensual 
alternative dispute resolution techniques to the 
maximum extent practicable.’’; and 
(2) by striking paragraph (4), relating to the ef-
fective date, and inserting the following: 
‘‘(4) ADJUDICATION OF CERTAIN BID PROTESTS 
AND CONTRACT DISPUTES.—A bid protest or contract 
dispute that is not addressed or resolved through al-
ternative dispute resolution shall be adjudicated by 
the Administrator through Dispute Resolution Offi-
cers or Special Masters of the Federal Aviation Ad-
ministration Office of Dispute Resolution for Acquisi-
tion, acting pursuant to sections 46102, 46104, 
46105, 46106 and 46107.’’. 
(c) AUTHORITY
OF ADMINISTRATOR TO ACQUIRE 
SERVICES.—Section 106(f)(2)(A)(ii) is amended by insert-
ing ‘‘, services,’’ after ‘‘property’’. 
SEC. 405. LOW-EMISSION AIRPORT VEHICLES AND GROUND 
SUPPORT EQUIPMENT. 
(a) IN GENERAL.—Section 40117(a)(3) is amended by 
inserting at the end the following:
‘‘(G) A project for the acquisition or conver-
sion of ground support equipment or airport-
owned vehicles used at a commercial service air-
port with, or to, low-emission technology (as de-
fined in section 47102) or cleaner burning con-
ventional fuels, or the retrofitting of such equip-
ment or vehicles that are powered by a diesel or 
gasoline engine with emission control tech-
nologies certified or verified by the Environ-
mental Protection Agency to reduce emissions, if 
the airport is located in an air quality non-
attainment area (as defined in section 171(2) of 
the Clean Air Act (42 U.S.C. 7501(2)) or a 
maintenance area referred to in section 175A of 
such Act (42 U.S.C. 7505a), and if such project 
will result in an airport receiving appropriate 
emission credits as described in section 47138.’’. 
(b) MAXIMUM COST
FOR CERTAIN LOW-EMISSION 
TECHNOLOGY PROJECTS.—Section 40117(b) is amended by 
adding at the end the following: 
‘‘(5) MAXIMUM COST FOR CERTAIN LOW-EMIS-
SION
TECHNOLOGY
PROJECTS.—The maximum cost 
that may be financed by imposition of a passenger fa-
cility fee under this section for a project described in 
subsection (a)(3)(G) with respect to vehicle or ground
support equipment may not exceed the incremental 
amount of the project cost that is greater than the cost 
of acquiring a vehicle or equipment that is not low-
emission and would be used for the same purpose, or 
the cost of low-emission retrofitting, as determined by 
the Secretary.’’. 
(c) GROUND SUPPORT EQUIPMENT DEFINED.—Sec-
tion 40117(a) is amended—
(1) by redesignating paragraphs (4) and (5) as 
paragraphs (5) and (6), respectively; 
(2) by inserting after paragraph (3) the fol-
lowing: 
‘‘(4) GROUND SUPPORT EQUIPMENT.—The term 
‘ground support equipment’ means service and main-
tenance equipment used at an airport to support 
aeronautical operations and related activities.’’. 
SEC. 406. STREAMLINING OF THE PASSENGER FACILITY 
FEE PROGRAM. 
(a) APPLICATION REQUIREMENTS.—Section 40117(c) 
is amended—
(1) by adding at the end of paragraph (2) the 
following: 
‘‘(E) The agency will include in its application 
or notice submitted under subparagraph (A) copies of
all certifications of agreement or disagreement re-
ceived under subparagraph (D). 
‘‘(F) For the purpose of this section, an eligible 
agency providing notice and an opportunity for con-
sultation to an air carrier or foreign air carrier is 
deemed to have satisfied the requirements of this 
paragraph if the eligible agency limits such notices 
and consultations to air carriers and foreign air car-
riers that have a significant business interest at the 
airport. In the subparagraph, the term ‘significant 
business interest’ means an air carrier or foreign air 
carrier that had no less than 1.0 percent of passenger 
boardings at the airport in the prior calendar year, 
had at least 25,000 passenger boardings at the airport 
in the prior calendar year, or provides scheduled serv-
ice at the airport.’’; 
(2) by redesignating paragraph (3) as para-
graph (4); 
(3) by inserting after paragraph (2) the fol-
lowing: 
‘‘(3) Before submitting an application, the eligible 
agency must provide reasonable notice and an opportunity 
for public comment. The Secretary shall prescribe regula-
tions that define reasonable notice and provide for at least 
the following under this paragraph:
‘‘(B) the amount of revenue from passenger 
facility fees that is proposed to be collected for 
each project; and 
‘‘(C) the level of the passenger facility fee 
that is proposed. 
‘‘(4) ACKNOWLEDGEMENT OF RECEIPT AND INDI-
CATION OF OBJECTION.—The Secretary shall acknowl-
edge receipt of the notice and indicate any objection 
to the imposition of a passenger facility fee under this 
subsection for any project identified in the notice 
within 30 days after receipt of the eligible agency’s 
notice. 
‘‘(5) AUTHORITY TO IMPOSE FEE.—Unless the 
Secretary objects within 30 days after receipt of the 
eligible agency’s notice, the eligible agency is author-
ized to impose a passenger facility fee in accordance 
with the terms of its notice under this subsection. 
‘‘(6) DEADLINE.—Not later than 180 days after 
the date of enactment of this subsection, the Secretary 
shall propose such regulations as may be necessary to 
carry out this subsection. 
‘‘(7) SUNSET.—This subsection shall not be in ef-
fect 3 years after the date of issuance of regulations 
to carry out this subsection.
‘‘(8) ACKNOWLEDGEMENT NOT AN ORDER.—An 
acknowledgement issued under paragraph (4) shall 
not be considered an order of the Secretary issued 
under section 46110.’’. 
(c) CLARIFICATION OF APPLICABILITY OF PFCS TO 
MILITARY CHARTERS.—Section 40117(e)(2) is amended—
(1) by striking the period at the end of subpara-
graph (C) and inserting a semicolon; 
(2) by striking ‘‘and’’ at the end of subpara-
graph (D); 
(3) by striking the period at the end of subpara-
graph (E) and inserting ‘‘; and’’; and 
(4) by inserting after subparagraph (E) the fol-
lowing: 
‘‘(F) enplaning at an airport if the passenger 
did not pay for the air transportation which resulted 
in such enplanement due to charter arrangements and 
payment by the Department of Defense.’’. 
(d) 
TECHNICAL
AMENDMENTS.—Section 
40117(a)(3)(C) is amended—
(1) by striking ‘‘for costs’’ and inserting ‘‘A 
project’’; and 
(2) by striking the semicolon and inserting a pe-
riod.
SEC. 407. FINANCIAL MANAGEMENT OF PASSENGER FACIL-
ITY FEES. 
(a) IN GENERAL.—Section 40117 is further amended 
by adding at the end the following: 
‘‘(m) FINANCIAL MANAGEMENT OF FEES.—
‘‘(1) HANDLING OF FEES.—
‘‘(A) PLACEMENT OF FEES IN ESCROW AC-
COUNT.—Subject to subparagraph (B), passenger 
facility revenue held by an air carrier or any of 
its agents shall be segregated from the carrier’s 
cash and other assets and placed in an escrow 
account for the benefit of the eligible agencies en-
titled to such revenue. 
‘‘(B) ALTERNATIVE
METHOD
OF
COMPLI-
ANCE.—Instead of placing amounts in an escrow 
account under subparagraph (A), an air carrier 
may provide to the eligible agency a letter of 
credit, bond, or other form of adequate and im-
mediately available security in an amount equal 
to estimated remittable passenger facility fees for 
180 days, to be assessed against later audit, 
upon which security the eligible agency shall be 
entitled to draw automatically, without necessity 
of any further legal or judicial action to effec-
tuate foreclosure.
‘‘(2) TRUST FUND STATUS.—If an air carrier or 
its agent commingles passenger facility revenue in 
violation of the subsection, the trust fund status of 
such revenue shall not be defeated by an inability of 
any party to identify and trace the precise funds in 
the accounts of the air carrier. 
‘‘(3) PROHIBITION.—An air carrier and its 
agents may not grant to any third party any security 
or other interest in passenger facility revenue. 
‘‘(4) COMPENSATION TO ELIGIBLE ENTITIES.—
An air carrier that fails to comply with any require-
ment of this subsection, or otherwise unnecessarily 
causes an eligible entity to expend funds, through liti-
gation or otherwise, to recover or retain payment of 
passenger facility revenue to which the eligible entity 
is otherwise entitled shall be required to compensate 
the eligible agency for the costs so incurred. 
‘‘(5) INTEREST ON AMOUNTS.—An air carrier 
that collects passenger facility fees is entitled to re-
ceive the interest on passenger facility fee accounts, if 
the accounts are established and maintained in com-
pliance with this subsection.’’. 
(b) EFFECTIVE DATE.—
(1) IN GENERAL.—The amendment made by sub-
section (a) shall take effect 60 days after the date of 
enactment of this Act. 
(2) EXISTING
REGULATIONS.—Beginning 60 
days after the date of enactment of this Act, the provi-
sions of section 158.49 of title 14, Code of Federal 
Regulations, that permit the commingling of pas-
senger facility fees with other air carrier revenue shall 
have no force or effect. 
SEC. 408. GOVERNMENT CONTRACTING FOR AIR TRANSPOR-
TATION. 
(a) GOVERNMENT-FINANCED AIR TRANSPORTATION.—
Section 40118(f)(2) is amended by inserting before the pe-
riod at the end the following: ‘‘, except that it shall not 
include a contract for the transportation by air of pas-
sengers’’. 
(b) AIRLIFT SERVICE.—Section 41106(b) is amended 
by inserting after ‘‘military department’’ the following: ‘‘, 
or by a person that has contracted with the Secretary of 
Defense or the Secretary of a military department,’’. 
SEC. 409. OVERFLIGHTS OF NATIONAL PARKS. 
(a) AIR TOUR MANAGEMENT ACT CLARIFICATIONS.—
Section 40128 is amended—
(1) in subsection (a)(1) by inserting ‘‘, as de-
fined by this section,’’ after ‘‘lands’’ the first place it 
appears; 
(2) in subsections (b)(3)(A), (b)(3)(B), and 
(b)(3)(C) by inserting ‘‘over a national park’’ after 
‘‘operations’’; 
(3) in subsection (b)(3)(D) by striking ‘‘at the 
park’’ and inserting ‘‘over a national park’’; 
(4) in subsection (b)(3)(E) by inserting ‘‘over a 
national park’’ after ‘‘operations’’ the first place it 
appears; 
(5) in subsections (c)(2)(A)(i) and (c)(2)(B) by 
inserting ‘‘over a national park’’ after ‘‘operations’’; 
(6) in subsection (f)(1) by inserting ‘‘over a na-
tional park’’ after ‘‘operation’’; 
(7) in subsection (f)(4)(A)—
(A) by striking ‘‘commercial air tour oper-
ation’’ and inserting ‘‘commercial air tour oper-
ation over a national park’’; and 
(B) by striking ‘‘park, or over tribal lands,’’ 
and inserting ‘‘park (except the Grand Canyon 
National Park), or over tribal lands (except those 
within or abutting the Grand Canyon National 
Park),’’;
(8) in subsection (f)(4)(B) by inserting ‘‘over a 
national park’’ after ‘‘operation’’; and 
(9) in the heading for paragraph (4) of sub-
section (f) by inserting ‘‘OVER A NATIONAL PARK’’ 
after ‘‘OPERATION’’. 
(b) GRAND CANYON NATIONAL PARK SPECIAL FLIGHT 
RULES AREA OPERATION CURFEW.—
(1) IN GENERAL.—The Administrator of the Fed-
eral Aviation Administration may not restrict com-
mercial Special Flight Rules Area operations in the 
Dragon and Zuni Point corridors of the Grand Can-
yon National Park during the period beginning 1 
hour after sunrise and ending 1 hour before sunset, 
unless required for aviation safety purposes. 
(2) EFFECT ON EXISTING REGULATIONS.—Begin-
ning on the date of enactment of this Act, section 
93.317 of title 14, Code of Federal Regulations, shall 
not be in effect. 
SEC. 410. COLLABORATIVE DECISIONMAKING PILOT PRO-
GRAM. 
(a) IN GENERAL.—Chapter 401 is amended by adding 
at the end the following: 
‘‘§ 40129. Collaborative decisionmaking pilot program 
‘‘(a) ESTABLISHMENT.—Not later than 90 days after 
the date of enactment of this section, the Administrator of
the Federal Aviation Administration shall establish a col-
laborative decisionmaking pilot program in accordance 
with this section. 
‘‘(b) DURATION.—Except as provided in subsection 
(k), the pilot program shall be in effect for a period of 2 
years. 
‘‘(c) GUIDELINES.—
‘‘(1) ISSUANCE.—The Administrator shall issue 
guidelines concerning the pilot program. Such guide-
lines, at a minimum, shall define the criteria and 
process for determining when a capacity reduction 
event exists that warrants the use of collaborative de-
cisionmaking among carriers at airports partici-
pating in the pilot program and that prescribe the 
methods of communication to be implemented among 
carriers during such an event. 
‘‘(2) VIEWS.—The Administrator may obtain the 
views of interested parties in issuing the guidelines. 
‘‘(d) EFFECT OF DETERMINATION OF EXISTENCE OF 
CAPACITY REDUCTION EVENT.—Upon a determination by 
the Administrator that a capacity reduction event exists, 
the Administrator may authorize air carriers and foreign 
air carriers operating at an airport participating in the 
pilot program to communicate for a period of time not to 
exceed 24 hours with each other concerning changes in their
respective flight schedules in order to use air traffic capac-
ity most effectively. The Administration shall facilitate and 
monitor such communication. 
‘‘(e) SELECTION OF PARTICIPATING AIRPORTS.—Not 
later than 30 days after the date on which the Adminis-
trator establishes the pilot program, the Administrator shall 
select 3 airports to participate in the pilot program from 
among the most capacity-constrained airports in the coun-
try based on the Administration’s Airport Capacity Bench-
mark Report 2001 or more recent data on airport capacity 
that is available to the Administrator. The Administrator 
shall select an airport for participation in the pilot pro-
gram if the Administrator determines that collaborative de-
cisionmaking among air carriers and foreign air carriers 
would reduce delays at the airport and have beneficial ef-
fects on reducing delays in the national airspace system as 
a whole. 
‘‘(f) ELIGIBILITY OF AIR CARRIERS.—An air carrier 
or foreign air carrier operating at an airport selected to 
participate in the pilot program is eligible to participate 
in the pilot program if the Administrator determines that 
the carrier has the operational and communications capa-
bility to participate in the pilot program. 
‘‘(g) MODIFICATION OR TERMINATION OF PILOT PRO-
GRAM AT AN AIRPORT.—The Administrator may modify or
end the pilot program at an airport before the term of the 
pilot program has expired, or may ban an air carrier or 
foreign air carrier from participating in the program, if 
the Administrator determines that the purpose of the pilot 
program is not being furthered by participation of the air-
port or air carrier or if the Secretary of Transportation 
finds that the pilot program or the participation of an air 
carrier or foreign air carrier in the pilot program has had, 
or is having, an adverse effect on competition among car-
riers. 
‘‘(h) EVALUATION.—
‘‘(1) IN GENERAL.—Before the expiration of the 
2-year period for which the pilot program is author-
ized under subsection (b), the Administrator shall de-
termine whether the pilot program has facilitated 
more effective use of air traffic capacity and the Sec-
retary shall determine whether the pilot program has 
had an adverse effect on airline competition or the 
availability of air services to communities. The Ad-
ministrator shall also examine whether capacity bene-
fits resulting from the participation in the pilot pro-
gram of an airport resulted in capacity benefits to 
other parts of the national airspace system. 
‘‘(2) OBTAINING NECESSARY DATA.—The Admin-
istrator may require participating air carriers and
airports to provide data necessary to evaluate the 
pilot program’s impact. 
‘‘(i) EXTENSION OF PILOT PROGRAM.—At the end of 
the 2-year period for which the pilot program is authorized, 
the Administrator may continue the pilot program for an 
additional 2 years and expand participation in the pro-
gram to up to 7 additional airports if the Administrator 
determines pursuant to subsection (h) that the pilot pro-
gram has facilitated more effective use of air traffic capac-
ity and if the Secretary determines that the pilot program 
has had no adverse effect on airline competition or the 
availability of air services to communities. The Adminis-
trator shall select the additional airports to participate in 
the extended pilot program in the same manner in which 
airports were initially selected to participate.’’. 
(b) CONFORMING
AMENDMENT.—The analysis for 
chapter 401 is amended by adding at the end the following:
‘‘40129. Collaborative decisionmaking pilot program.’’.
SEC. 411. AVAILABILITY OF AIRCRAFT ACCIDENT SITE IN-
FORMATION. 
(a) 
DOMESTIC
AIR
TRANSPORTATION.—Section 
41113(b) is amended—
(1) in paragraph (16) by striking ‘‘the air car-
rier’’ the third place it appears; and 
(2) by adding at the end the following:
‘‘(17)(A) An assurance that, in the case of an ac-
cident that results in significant damage to a man-
made structure or other property on the ground that 
is not government-owned, the air carrier will prompt-
ly provide notice, in writing, to the extent practicable, 
directly to the owner of the structure or other prop-
erty about liability for any property damage and 
means for obtaining compensation. 
‘‘(B) At a minimum, the written notice shall ad-
vise an owner (i) to contact the insurer of the prop-
erty as the authoritative source for information about 
coverage and compensation; (ii) to not rely on unoffi-
cial information offered by air carrier representatives 
about compensation by the air carrier for accident-
site property damage; and (iii) to obtain photo-
graphic or other detailed evidence of property damage 
as soon as possible after the accident, consistent with 
restrictions on access to the accident site. 
‘‘(18) An assurance that, in the case of an acci-
dent in which the National Transportation Safety 
Board conducts a public hearing or comparable pro-
ceeding at a location greater than 80 miles from the 
accident site, the air carrier will ensure that the pro-
ceeding is made available simultaneously by elec-
tronic means at a location open to the public at both
the origin city and destination city of the air car-
rier’s flight if that city is located in the United 
States.’’. 
(b) 
FOREIGN
AIR
TRANSPORTATION.—Section 
41313(c) is amended by adding at the end the following: 
‘‘(17) NOTICE CONCERNING LIABILITY FOR MAN-
MADE STRUCTURES.—
‘‘(A) IN GENERAL.—An assurance that, in 
the case of an accident that results in significant 
damage to a man-made structure or other prop-
erty on the ground that is not government-
owned, the foreign air carrier will promptly pro-
vide notice, in writing, to the extent practicable, 
directly to the owner of the structure or other 
property about liability for any property dam-
age and means for obtaining compensation. 
‘‘(B) MINIMUM CONTENTS.—At a minimum, 
the written notice shall advise an owner (i) to 
contact the insurer of the property as the author-
itative source for information about coverage and 
compensation; (ii) to not rely on unofficial infor-
mation offered by foreign air carrier representa-
tives about compensation by the foreign air car-
rier for accident-site property damage; and (iii) 
to obtain photographic or other detailed evidence
of property damage as soon as possible after the 
accident, consistent with restrictions on access to 
the accident site. 
‘‘(18) 
SIMULTANEOUS
ELECTRONIC
TRANS-
MISSION OF NTSB HEARING.—An assurance that, in 
the case of an accident in which the National Trans-
portation Safety Board conducts a public hearing or 
comparable proceeding at a location greater than 80 
miles from the accident site, the foreign air carrier 
will ensure that the proceeding is made available si-
multaneously by electronic means at a location open 
to the public at both the origin city and destination 
city of the foreign air carrier’s flight if that city is 
located in the United States.’’. 
(c) UPDATE PLANS.—Air carriers and foreign air car-
riers shall update their plans under sections 41113 and 
41313 of title 49, United States Code, respectively, to reflect 
the amendments made by subsections (a) and (b) of this 
section not later than 90 days after the date of enactment 
of this Act. 
SEC. 412. SLOT EXEMPTIONS AT RONALD REAGAN WASH-
INGTON NATIONAL AIRPORT. 
(a) 
BEYOND-PERIMETER
EXEMPTIONS.—Section 
41718(a) is amended by striking ‘‘12’’ and inserting ‘‘24’’.
(b) 
WITHIN-PERIMETER
EXEMPTIONS.—Section 
41718(b) is amended—
(1) by striking ‘‘12’’ and inserting ‘‘20’’; and 
(2) by striking ‘‘that were designated as medium 
hub or smaller airports’’. 
(c) LIMITATIONS.—
(1) GENERAL EXEMPTIONS.—Section 41718(c)(2) 
is amended by striking ‘‘two’’ and inserting ‘‘3’’. 
(2) ALLOCATION OF WITHIN-PERIMETER EXEMP-
TIONS.—Section 41718(c)(3) is amended—
(A) in subparagraph (A)—
(i) by striking ‘‘four’’ and inserting 
‘‘six’’; and 
(ii) by striking ‘‘and’’ at the end; 
(B) in subparagraph (B)—
(i) by striking ‘‘eight’’ and inserting 
‘‘ten’’; and 
(ii) by striking the period at the end 
and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(C) four shall be for air transportation to 
airports without regard to their size.’’. 
(d) APPLICATION PROCEDURES.—Section 41718(d) is 
amended to read as follows:
‘‘(d) APPLICATION PROCEDURES.—The Secretary shall 
establish procedures to ensure that all requests for exemp-
tions under this section are granted or denied within 90 
days after the date on which the request is made.’’. 
(e) EFFECT OF PERIMETER RULES ON COMPETITION 
AND AIR SERVICE.—
(1) IDENTIFICATION OF OTHER AIRPORTS.—The 
Secretary of Transportation shall identify airports 
(other than Ronald Reagan Washington National Air-
port) that have imposed perimeter rules like those in 
effect with respect to Ronald Reagan Washington Na-
tional Airport. 
(2) LIMITATION ON APPLICABILITY.—This sub-
section does not apply to perimeter rules imposed by 
Federal law. 
(3) STUDY.—The Secretary shall conduct a study 
of the effect that perimeter rules for airports identi-
fied under paragraph (1) have on competition and on 
air service to communities outside the perimeter. 
(4) REPORT.—Not later than 120 days after the 
date of enactment of this Act, the Secretary shall 
transmit to Congress a report on the results of the 
study.
(f) EFFECT OF CHANGING DEFINITION OF COMMUTER 
AIR CARRIER.—
(1) STUDY.—The Secretary shall study the effects 
of changing the definition of commuter air carrier in 
regulations of the Federal Aviation Administration to 
increase the maximum size of aircraft of such carriers 
to 76 seats or less on air service to small communities 
and on commuter air carriers operating aircraft with 
56 seats or less. 
(2) REPORT.—Not later than 90 days after the 
date of enactment of this Act, the Secretary shall 
transmit to Congress a report on the results of the 
study. 
SEC. 413. NOTICE CONCERNING AIRCRAFT ASSEMBLY. 
(a) IN GENERAL.—Subchapter I of chapter 417 is 
amended by adding at the end the following:
‘‘§ 41722. Notice concerning aircraft assembly 
‘‘The Secretary of Transportation shall require, begin-
ning after the last day of the 1-year period following the 
date of enactment of this section, an air carrier using an 
aircraft to provide scheduled passenger air transportation 
to display a notice, on an information placard available 
to each passenger on the aircraft, that informs the pas-
sengers of the nation in which the aircraft was finally as-
sembled.’’.
(b) CONFORMING
AMENDMENT.—The analysis for 
chapter 417 is amended by striking the item relating to sec-
tion 41721 and inserting the following:
‘‘41721. Reports by carriers on incidents involving animals during air transport. 
‘‘41722. Notice concerning aircraft assembly.’’.
SEC. 414. SPECIAL RULE TO PROMOTE AIR SERVICE TO 
SMALL COMMUNITIES. 
(a) IN GENERAL.—Subchapter I of chapter 417 is fur-
ther amended by adding at the end the following:
‘‘§ 41723. Special rule to promote air service to small 
communities 
‘‘In order to promote air service to small communities, 
the Secretary of Transportation shall permit an operator 
of a turbine powered or multiengine piston powered aircraft 
with 10 passenger seats or less (1) to provide air transpor-
tation between an airport that is a nonhub airport and an-
other airport or between an airport that is not a commer-
cial service airport and another airport, and (2) to sell in-
dividual seats on that aircraft at a negotiated price, if the 
aircraft is otherwise operated in accordance with parts 119 
and 135 of title 14, Code of Federal Regulations, and the 
air transportation is otherwise provided in accordance with 
part 298 of such title 14.’’.
(b) CONFORMING
AMENDMENT.—The analysis for 
chapter 417 is further amended by adding at the end the 
following:
‘‘41723. Special rule to promote air service to small communities.’’.
SEC. 415. SMALL COMMUNITY AIR SERVICE. 
(a) COMPENSATION GUIDELINES, LIMITATION, AND 
CLAIMS.—
(1) PAYMENT OF PROMOTIONAL AMOUNTS.—Sec-
tion 41737(a)(2) is amended by inserting before the 
period at the end ‘‘or may be paid directly to the unit 
of local government having jurisdiction over the eligi-
ble place served by the air carrier’’. 
(2) LOCAL SHARE.—Section 41737(a) is amend-
ed by adding at the end the following: 
‘‘(3) PAYMENT
OF
COST
BY
LOCAL
GOVERN-
MENT.—
‘‘(A) GENERAL REQUIREMENT.—The guide-
lines may require a unit of local government 
having jurisdiction over an eligible place that is 
less than 170 miles from a medium or large hub 
or less than 75 miles from a small hub or a 
State within the boundaries of which the eligible 
place is located to pay 2.5 percent in fiscal year 
2005, 5 percent in fiscal year 2006, 7.5 percent 
in fiscal year 2007, and 10 percent in fiscal year 
2008 of the amount of compensation payable
under this subchapter for air transportation 
with respect to the eligible place to ensure the 
continuation of that air transportation. 
‘‘(B) WAIVER.—The Secretary may waive 
the requirement, or reduce the amount, of a pay-
ment from a unit of local government under sub-
paragraph (A) if the Secretary finds that—
‘‘(i) the unit of local government lacks 
the ability to pay; and 
‘‘(ii) the loss of essential air service to 
the eligible place would have an adverse ef-
fect on the eligible place’s access to the na-
tional air transportation system. 
‘‘(C) DETERMINATION OF MILEAGE.—In de-
termining the mileage between the eligible place 
and a hub under this paragraph, the Secretary 
shall use the most commonly used highway route 
between the eligible place and the hub.’’. 
(3) AUTHORITY
TO
MAKE
AGREEMENTS
AND 
INCUR
OBLIGATIONS.—Section 41737(d) is amend-
ed—
(A) by striking ‘‘(1) The Secretary’’ and in-
serting the ‘‘The Secretary’’; and 
(B) by striking paragraph (2).
(b) AIRPORTS NOT RECEIVING SUFFICIENT SERV-
ICE.—Section 41743 is amended—
(1) in the heading of subsection (a) by striking 
‘‘PILOT’’; 
(2) in subsection (a) by striking ‘‘pilot’’; 
(3) in subsection (c)—
(A) by striking paragraph (3); 
(B) by redesignating paragraphs (4) and 
(5) as paragraphs (3) and (4), respectively; and 
(C) in paragraph (4) (as so redesignated)—
(i) by striking ‘‘and’’ at the end of sub-
paragraph (C); 
(ii) by striking the period at the end of 
subparagraph (D) and inserting ‘‘; and’’; 
and 
(iii) by adding at the end the fol-
lowing: 
‘‘(E) the assistance can be used in the fiscal 
year in which it is received.’’; and 
(4) in subsection (f) by striking ‘‘pilot’’. 
(c) ESSENTIAL AIR SERVICE AUTHORIZATION.—Sec-
tion 41742 is amended—
(1) 
in 
subsection 
(a)(2) 
by 
striking 
‘‘$15,000,000’’ and inserting ‘‘$65,000,000’’;
(2) by adding at the end of subsection (a) the fol-
lowing: 
‘‘(3) AUTHORIZATION FOR ADDITIONAL EMPLOY-
EES.—In addition to amounts authorized under 
paragraphs (1) and (2), there are authorized to be ap-
propriated such sums as may be necessary for the 
Secretary of Transportation to hire and employ 4 ad-
ditional employees for the office responsible for car-
rying out the essential air service program.’’; and 
(3) by striking subsection (c). 
(d) PROCESS
FOR DISCONTINUING CERTAIN SUB-
SIDIES.—Section 41734 is amended by adding at the end 
the following: 
‘‘(i) PROCESS
FOR DISCONTINUING CERTAIN SUB-
SIDIES.—If the Secretary determines that no subsidy will 
be provided to a carrier to provide essential air service to 
an eligible place because the eligible place does not meet 
the requirements of section 332 of the Department of Trans-
portation and Related Agencies Appropriations Act, 2000 
(49 U.S.C. 41731 note; 113 Stat. 1022), the Secretary shall 
notify the affected community that the subsidy will cease 
but shall continue to provide the subsidy for 90 days after 
providing the notice to the community.’’. 
(e) JOINT PROPOSALS.—Section 41740 is amended by 
inserting ‘‘, including joint fares,’’ after ‘‘joint proposals’’.
(f) COMMUNITY AND REGIONAL CHOICE PROGRAM.—
(1) IN GENERAL.—Subchapter II of chapter 417 
is amended by adding at the end the following:
‘‘§ 41745. Community and regional choice program 
‘‘(a) ESTABLISHMENT.—The Secretary of Transpor-
tation shall establish an alternate essential air service pilot 
program in accordance with the requirements of this sec-
tion. 
‘‘(b) COMPENSATION TO ELIGIBLE PLACES.—In car-
rying out the program, the Secretary, instead of paying 
compensation to an air carrier to provide essential air serv-
ice to an eligible place, may pay compensation directly to 
a unit of local government having jurisdiction over the eli-
gible place or a State within the boundaries of which the 
eligible place is located. 
‘‘(c) USE OF COMPENSATION.—A unit of local govern-
ment or State receiving compensation for an eligible place 
under the program shall use the compensation for any of 
the following purposes: 
‘‘(1) To provide assistance to an air carrier to 
provide scheduled air service to and from the eligible 
place, without being subject to the requirements of 
41732(b).
‘‘(2) To provide assistance to an air carrier to 
provide on-demand air taxi service to and from the 
eligible place. 
‘‘(3) To provide assistance to a person to provide 
scheduled or on-demand surface transportation to and 
from the eligible place and an airport in another 
place. 
‘‘(4) In combination with other units of local 
government in the same region, to provide transpor-
tation services to and from all the eligible places in 
that region at an airport or other transportation cen-
ter that can serve all the eligible places in that region. 
‘‘(5) To purchase aircraft, or a fractional share 
in aircraft, to provide transportation to and from the 
eligible place. 
‘‘(6) To pay for other transportation or related 
services that the Secretary may permit. 
‘‘(d) FRACTIONALLY
OWNED
AIRCRAFT.—Notwith-
standing any other provision of law, only those operating 
rules that relate to an aircraft that is fractionally owned 
apply when an aircraft described in subsection (c)(5) is 
used to provide transportation described in subsection 
(c)(5). 
‘‘(e) APPLICATIONS.—
‘‘(1) IN GENERAL.—A unit of local government 
or State seeking to participate in the program for an 
eligible place shall submit to the Secretary an appli-
cation in such form and containing such information 
as the Secretary may require. 
‘‘(2) REQUIRED INFORMATION.—At a minimum, 
the application shall include—
‘‘(A) a statement of the amount of com-
pensation required; and 
‘‘(B) a description of how the compensation 
will be used. 
‘‘(f) PARTICIPATION REQUIREMENTS.—
‘‘(1) ELIGIBLE PLACES.—An eligible place for 
which compensation is received under the program in 
a fiscal year shall not be eligible to receive in that fis-
cal year the essential air service that it would other-
wise be entitled to under this subchapter. 
‘‘(2) GOVERNMENTAL ENTITIES.—A unit of local 
government or State receiving compensation for an el-
igible place under the program in a fiscal year shall 
not be required to pay the local share described in 
41737(a)(3) in such fiscal year. 
‘‘(g) SUBSEQUENT PARTICIPATION.—A unit of local 
government participating in the program under this section 
in a fiscal year shall not be prohibited from participating
in the basic essential air service program under this chapter 
in a subsequent fiscal year if such unit is otherwise eligible 
to participate in such program. 
‘‘(h) FUNDING.—Amounts appropriated or otherwise 
made available to carry out the essential air service pro-
gram under this subchapter shall be available to carry out 
this section.’’. 
(2) CONFORMING AMENDMENT.—The analysis for 
chapter 417 is amended by inserting after the item re-
lating to section 41744 the following:
‘‘41745. Community and regional choice program.’’.
SEC. 416. TYPE CERTIFICATES. 
(a) AGREEMENTS TO PERMIT USE OF CERTIFICATES 
BY OTHER PERSONS.—Section 44704(a) is amended by 
adding at the end the following: 
‘‘(3) If the holder of a type certificate agrees to permit 
another person to use the certificate to manufacture a new 
aircraft, aircraft engine, propeller, or appliance, the holder 
shall provide the other person with written evidence, in a 
form acceptable to the Administrator, of that agreement. A 
person may manufacture a new aircraft, aircraft engine, 
propeller, or appliance based on a type certificate only if 
the person is the holder of the type certificate or has permis-
sion from the holder.’’.
(b) CERTIFICATION OF PRODUCTS MANUFACTURED IN 
FOREIGN NATIONS.—Section 44704 is further amended by 
adding at the end the following: 
‘‘(e) CERTIFICATION OF PRODUCTS MANUFACTURED IN 
FOREIGN NATIONS.—In order to ensure safety, the Admin-
istrator shall spend at least the same amount of time and 
perform a no-less-thorough review in certifying, or vali-
dating the certification of, an aircraft, aircraft engine, pro-
peller, or appliance manufactured in a foreign nation as 
the regulatory authorities of that nation employ when the 
authorities certify, or validate the certification of, an air-
craft, aircraft engine, propeller, or appliance manufactured 
in the United States.’’. 
SEC. 417. DESIGN ORGANIZATION CERTIFICATES. 
(a) GENERAL AUTHORITY TO ISSUE CERTIFICATES.—
Effective on the last day of the 7-year period beginning on 
the date of enactment of this Act, section 44702(a) is 
amended by inserting ‘‘design organization certificates,’’ 
after ‘‘airman certificates,’’. 
(b) DESIGN ORGANIZATION CERTIFICATES.—
(1) PLAN.—Not later than 3 years after the date 
of enactment of this Act, the Administrator of the 
Federal Aviation Administration shall transmit to 
the Committee on Transportation and Infrastructure 
of the House of Representatives and the Committee on
Commerce, Science, and Transportation of the Senate 
a plan for the development and oversight of a system 
for certification of design organizations to certify 
compliance with the requirements and minimum 
standards prescribed under section 44701(a) of title 
49, United States Code, for the type certification of 
aircraft, aircraft engines, propellers, or appliances. 
(2) ISSUANCE OF CERTIFICATES.—Section 44704 
is further amended by adding at the end the fol-
lowing: 
‘‘(f) DESIGN ORGANIZATION CERTIFICATES.—
‘‘(1) ISSUANCE.—Beginning 7 years after the 
date of enactment of this subsection, the Adminis-
trator may issue a design organization certificate to 
a design organization to authorize the organization to 
certify compliance with the requirements and min-
imum standards prescribed under section 44701(a) 
for the type certification of aircraft, aircraft engines, 
propellers, or appliances. 
‘‘(2) APPLICATIONS.—On receiving an applica-
tion for a design organization certificate, the Admin-
istrator shall examine and rate the design organiza-
tion submitting the application, in accordance with 
regulations to be prescribed by the Administrator, to 
determine whether the design organization has ade-
quate engineering, design, and testing capabilities, 
standards, and safeguards to ensure that the product 
being certificated is properly designed and manufac-
tured, performs properly, and meets the regulations 
and minimum standards prescribed under section 
44701(a). 
‘‘(3) ISSUANCE OF TYPE CERTIFICATES BASED 
ON DESIGN ORGANIZATION CERTIFICATION.—On re-
ceiving an application for a type certificate under 
subsection (a) that is accompanied by a certification 
of compliance by a design organization certificated 
under this subsection, instead of conducting an inde-
pendent investigation under subsection (a), the Ad-
ministrator may issue the type certificate based on 
the certification of compliance. 
‘‘(4) PUBLIC SAFETY.—The Administrator shall 
include in a design organization certificate issued 
under this subsection terms required in the interest of 
safety.’’. 
(c) REINSPECTION
AND
REEXAMINATION.—Section 
44709(a) is amended by inserting ‘‘design organization, 
production certificate holder,’’ after ‘‘appliance,’’. 
(d) PROHIBITIONS.—Section 44711(a)(7) is amended 
by striking ‘‘agency’’ and inserting ‘‘agency, design organi-
zation certificate, ’’.
(e) CONFORMING AMENDMENTS.—
(1) 
SECTION
HEADING.—Section 
44704 
is 
amended by striking the section designation and 
heading and inserting the following: 
‘‘§ 44704. Type certificates, production certificates, 
airworthiness certificates, and design or-
ganization certificates’’. 
(2) CHAPTER ANALYSIS.—The analysis for chap-
ter 447 is amended by striking the item relating to 
section 44704 and inserting the following:
‘‘44704. Type certificates, production certificates, airworthiness certificates, and 
design organization certificates.’’.
SEC. 418. COUNTERFEIT OR FRAUDULENTLY REPRESENTED 
PARTS VIOLATIONS. 
Section 44726(a)(1) is amended—
(1) by striking ‘‘or’’ at the end of subparagraph 
(A); 
(2) by redesignating subparagraph (B) as sub-
paragraph (C); 
(3) by inserting after subparagraph (A) the fol-
lowing: 
‘‘(B) whose certificate is revoked under sub-
section (b); or’’; and 
(4) in subparagraph (C) (as redesignated by 
paragraph (2) of this section) by striking ‘‘convicted
of such a violation.’’ and inserting ‘‘described in sub-
paragraph (A) or (B).’’. 
SEC. 419. RUNWAY SAFETY STANDARDS. 
(a) IN GENERAL.—Chapter 447 is amended by adding 
at the end the following:
‘‘§ 44727. Runway safety areas 
‘‘An airport owner or operator shall not be required 
to reduce the length of a runway or declare the length of 
a runway to be less than the actual pavement length in 
order to meet standards of the Federal Aviation Adminis-
tration applicable to runway safety areas.’’. 
(b) CONFORMING
AMENDMENT.—The analysis for 
chapter 447 is amended by adding at the end the following:
‘‘44727. Runway safety areas.’’.
SEC. 420. AVAILABILITY OF MAINTENANCE INFORMATION. 
(a) IN GENERAL.—Chapter 447 is further amended by 
adding at the end the following: 
‘‘§ 44728. Availability of maintenance information 
‘‘(a) IN GENERAL.—The Administrator of the Federal 
Aviation Administration shall continue in effect the re-
quirement of section 21.50(b) of title 14, Code of Federal 
Regulations, that the holder of a design approval—
‘‘(1) shall prepare and furnish at least one set of 
complete instructions for continued airworthiness as 
prescribed in such section to the owner of each type 
of aircraft, aircraft engine, or propeller upon its de-
livery or upon the issuance of the first standard air-
worthiness certificate for the affected aircraft, which-
ever occurs later; and 
‘‘(2) thereafter shall make the instructions, and 
any changes thereto, available to any other person re-
quired by parts 1 through 199 of title 14, Code of 
Federal Regulations, to comply with any of the terms 
of the instructions. 
‘‘(b) DEFINITIONS.—In this section, the following defi-
nitions apply: 
‘‘(1) MAKE AVAILABLE.—The term ‘make avail-
able’ means providing at a cost not to exceed the cost 
of preparation and distribution. 
‘‘(2) DESIGN APPROVAL.—The term ‘design ap-
proval’ means a type certificate, supplemental type 
certificate, amended type certificate, parts manufac-
turer approval, technical standard order authoriza-
tion, and any other action as determined by the Ad-
ministrator pursuant to subsection (c)(2). 
‘‘(3) INSTRUCTIONS FOR CONTINUED AIRWORTHI-
NESS.—The term ‘instructions for continued air-
worthiness’ means any information (and any changes 
to such information) considered essential to continued 
airworthiness that sets forth the methods, techniques, 
and practices for performing maintenance and alter-
ation on civil aircraft, aircraft engines, propellers, 
appliances or any part installed thereon. Such infor-
mation may include maintenance, repair, and over-
haul manuals, standard practice manuals, service 
bulletins, service letters, or similar documents issued 
by a design approval holder. 
‘‘(c) RULEMAKING.—The Administrator shall conduct 
a rulemaking proceeding for the following purposes: 
‘‘(1) To determine the meaning of the phrase ‘es-
sential to continued airworthiness’ of the applicable 
aircraft, aircraft engine, and propeller as that term 
is used in parts 23 through 35 of title 14, Code of 
Federal Regulations. 
‘‘(2) To determine if a design approval should 
include, in addition to those approvals specified in 
subsection (b)(2), any other activity in which persons 
are required to have technical data approved by the 
Administrator. 
‘‘(3) To revise existing rules to reflect the defini-
tion of design approval holder in subsections (b)(2) 
and (c)(2). 
‘‘(4) To determine if design approval holders 
that prepared instructions for continued airworthi-
ness or maintenance manuals before January 29, 
1981, should be required to make the manuals avail-
able (including any changes thereto) to any person re-
quired by parts 1 through 199 of title 14, Code of 
Federal Regulations, to comply with any of the terms 
of those manuals. 
‘‘(5) To require design approval holders that—
‘‘(A) are operating an ongoing business con-
cern; 
‘‘(B) were required to produce maintenance 
manuals or instructions for continued airworthi-
ness under section 21.50(b) of title 14, Code of 
Federal Regulations; and 
‘‘(C) have not done so, 
to prepare those documents and make them available 
as required by this section not later than 1 year after 
date on which the regulations are published. 
‘‘(6) To revise its rules to reflect the changes 
made by this section. 
‘‘(d) LIMITATION ON STATUTORY CONSTRUCTION.—
Nothing is this section shall be construed as requiring the 
holder of a design approval to make available proprietary 
information unless it is deemed essential to continued air-
worthiness.’’. 
(b) CONFORMING
AMENDMENT.—The analysis for 
chapter 447 is further amended by adding at the end the 
following:
‘‘44728. Availability of maintenance information.’’.
SEC. 421. CERTIFICATE ACTIONS IN RESPONSE TO A SECU-
RITY THREAT. 
(a) IN GENERAL.—Chapter 461 is amended by adding 
at the end the following: 
‘‘§ 46111. Certificate actions in response to a security 
threat 
‘‘(a) ORDERS.—The Administrator of Federal Avia-
tion Administration shall issue an order amending, modi-
fying, suspending, or revoking any part of a certificate 
issued under this title if the Administrator is notified by 
the Under Secretary for Border and Transportation Secu-
rity of the Department of Homeland Security that the hold-
er of the certificate poses, or is suspected of posing, a risk 
of air piracy or terrorism or a threat to airline or passenger 
safety. If requested by the Under Secretary, the order shall 
be effective immediately. 
‘‘(b) HEARINGS FOR CITIZENS.—An individual who is 
a citizen of the United States who is adversely affected by 
an order of the Administrator under subsection (a) is enti-
tled to a hearing on the record. 
‘‘(c) HEARINGS.—When conducting a hearing under 
this section, the administrative law judge shall not be bound 
by findings of fact or interpretations of laws and regula-
tions of the Administrator or the Under Secretary. 
‘‘(d) APPEALS.—An appeal from a decision of an ad-
ministrative law judge as the result of a hearing under sub-
section (b) shall be made to the Transportation Security 
Oversight Board established by section 115. The Board shall 
establish a panel to review the decision. The members of 
this panel (1) shall not be employees of the Transportation 
Security Administration, (2) shall have the level of security 
clearance needed to review the determination made under 
this section, and (3) shall be given access to all relevant 
documents that support that determination. The panel may 
affirm, modify, or reverse the decision. 
‘‘(e) REVIEW.—A person substantially affected by an 
action of a panel under subsection (d), or the Under Sec-
retary when the Under Secretary decides that the action 
of the panel under this section will have a significant ad-
verse impact on carrying out this part, may obtain review 
of the order under section 46110. The Under Secretary and 
the Administrator shall be made a party to the review pro-
ceedings. Findings of fact of the panel are conclusive if sup-
ported by substantial evidence. 
‘‘(f) EXPLANATION
OF DECISIONS.—An individual 
who commences an appeal under this section shall receive 
a written explanation of the basis for the determination or 
decision and all relevant documents that support that deter-
mination to the maximum extent that the national security 
interests of the United States and other applicable laws per-
mit.
‘‘(g) CLASSIFIED EVIDENCE.—
‘‘(1) IN
GENERAL.—The Under Secretary, in 
consultation with the Administrator, shall issue regu-
lations to establish procedures by which the Under 
Secretary, as part of a hearing conducting under this 
section, may substitute an unclassified summary of 
classified evidence upon the approval of the adminis-
trative law judge. 
‘‘(2) APPROVAL
AND
DISAPPROVAL
OF
SUM-
MARIES.—Under the procedures, an administrative 
law judge shall—
‘‘(A) approve a summary if the judge finds 
that it is sufficient to enable the certificate hold-
er to appeal an order issued under subsection 
(a); or 
‘‘(B) disapprove a summary if the judge 
finds that it is not sufficient to enable the certifi-
cate holder to appeal such an order. 
‘‘(3) MODIFICATIONS.—If an administrative law 
judge disapproves a summary under paragraph 
(2)(B), the judge shall direct the Under Secretary to 
modify the summary and resubmit the summary for 
approval. 
‘‘(4) INSUFFICIENT MODIFICATIONS.—If an ad-
ministrative law judge is unable to approve a modi-
fied summary, the order issued under subsection (a) 
that is the subject of the hearing shall be set aside un-
less the judge finds that such a result—
‘‘(A) would likely cause serious and irrep-
arable harm to the national security; or 
‘‘(B) would likely cause death or serious 
bodily injury to any person. 
‘‘(5) SPECIAL PROCEDURES.—If an administra-
tive law judge makes a finding under subparagraph 
(A) or (B) of paragraph (4), the hearing shall proceed 
without an unclassified summary provided to the cer-
tificate holder. In such a case, subject to procedures 
established by regulation by the Under Secretary in 
consultation with the Administrator, the administra-
tive law judge shall appoint a special attorney to as-
sist the accused by—
‘‘(A) reviewing in camera the classified evi-
dence; and 
‘‘(B) challenging, through an in camera 
proceeding, the veracity of the evidence contained 
in the classified information.’’. 
(b) CONFORMING
AMENDMENT.—The analysis for 
chapter 461 is amended by adding at the end the following:
‘‘46111. Certificate actions in response to a security threat.’’.
SEC. 422. FLIGHT ATTENDANT CERTIFICATION. 
(a) IN GENERAL.—Chapter 447 is further amended by 
adding at the end the following: 
‘‘§ 44729. Flight attendant certification 
‘‘(a) CERTIFICATE REQUIRED.—
‘‘(1) IN GENERAL.—No person may serve as a 
flight attendant aboard an aircraft of an air carrier 
unless that person holds a certificate of demonstrated 
proficiency from the Administrator of the Federal 
Aviation Administration. Upon the request of the Ad-
ministrator or an authorized representative of the Na-
tional Transportation Safety Board or another Fed-
eral agency, a person who holds such a certificate 
shall present the certificate for inspection within a 
reasonable period of time after the date of the request. 
‘‘(2) SPECIAL RULE FOR CURRENT FLIGHT AT-
TENDANTS.—An individual serving as a flight attend-
ant on the effective date of this section may continue 
to serve aboard an aircraft as a flight attendant until 
completion by that individual of the required recur-
rent or requalification training and subsequent cer-
tification under this section. 
‘‘(3) TREATMENT OF FLIGHT ATTENDANT AFTER 
NOTIFICATION.—On the date that the Administrator 
is notified by an air carrier that an individual has 
the demonstrated proficiency to be a flight attendant,
the individual shall be treated for purposes of this sec-
tion as holding a certificate issued under the section. 
‘‘(b) ISSUANCE OF CERTIFICATE.—The Administrator 
shall issue a certificate of demonstrated proficiency under 
this section to an individual after the Administrator is no-
tified by the air carrier that the individual has successfully 
completed all the training requirements for flight attend-
ants approved by the Administrator. 
‘‘(c) DESIGNATION OF PERSON TO DETERMINE SUC-
CESSFUL COMPLETION OF TRAINING.—In accordance with 
part 183 of chapter 14, Code of Federal Regulation, the di-
rector of operations of an air carrier is designated to deter-
mine that an individual has successfully completed the 
training requirements approved by the Administrator for 
such individual to serve as a flight attendant. 
‘‘(d) SPECIFICATIONS RELATING TO CERTIFICATES.—
Each certificate issued under this section shall—
‘‘(1) be numbered and recorded by the Adminis-
trator; 
‘‘(2) contain the name, address, and description 
of the individual to whom the certificate is issued; 
‘‘(3) contain the name of the air carrier that em-
ploys or will employ the certificate holder on the date 
that the certificate is issued;
‘‘(4) is similar in size and appearance to certifi-
cates issued to airmen; 
‘‘(5) contain the airplane group for which the 
certificate is issued; and 
‘‘(6) be issued not later than 30 days after the 
Administrator receives notification from the air car-
rier of demonstrated proficiency and, in the case of 
an individual serving as flight attendant on the effec-
tive date of this section, not later than 1 year after 
such effective date. 
‘‘(e) APPROVAL OF TRAINING PROGRAMS.—Air carrier 
flight attendant training programs shall be subject to ap-
proval by the Administrator. All flight attendant training 
programs approved by the Administrator in the 1-year pe-
riod ending on the date of enactment of this section shall 
be treated as providing a demonstrated proficiency for pur-
poses of meeting the certification requirements of this sec-
tion. 
‘‘(f) FLIGHT ATTENDANT DEFINED.—In this section, 
the term ‘flight attendant’ means an individual working as 
a flight attendant in the cabin of an aircraft that has 20 
or more seats and is being used by an air carrier to provide 
air transportation.’’.
(b) CONFORMING
AMENDMENT.—The analysis for 
chapter 447 is further amended by adding at the end the 
following:
‘‘44729. Flight attendant certification.’’.
(c) EFFECTIVE DATE.—The amendments made by sub-
sections (a) and (b) shall take effect on the 365th day fol-
lowing the date of enactment of this Act. 
SEC. 423. CIVIL PENALTY FOR CLOSURE OF AN AIRPORT 
WITHOUT PROVIDING SUFFICIENT NOTICE. 
(a) IN GENERAL.—Chapter 463 is amended by adding 
at the end the following: 
‘‘§ 46319. Closure of an airport without providing suf-
ficient notice 
‘‘(a) PROHIBITION.—A public agency (as defined in 
section 47102) may not close an airport listed in the na-
tional plan of integrated airport systems under section 
47103 without providing written notice to the Adminis-
trator of the Federal Aviation Administration at least 30 
days before the date of the closure. 
‘‘(b) PUBLICATION OF NOTICE.—The Administrator 
shall publish each notice received under subsection (a) in 
the Federal Register. 
‘‘(c) CIVIL PENALTY.—A public agency violating sub-
section (a) shall be liable for a civil penalty of $10,000 for 
each day that the airport remains closed without 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 notice.’’.
SEC. 424. NOISE EXPOSURE MAPS. 
Section 47503 is amended—
(1) in subsection (a) by striking ‘‘1985,’’ and in-
serting ‘‘a forecast period that is at least 5 years in 
the future’’; and 
(2) by striking subsection (b) and inserting the 
following: 
‘‘(b) REVISED MAPS.—If, in an area surrounding an 
airport, a change in the operation of the airport would es-
tablish a substantial new noncompatible use, or would sig-
nificantly reduce noise over existing noncompatible uses, 
that is not reflected in either the existing conditions map 
or forecast map currently on file with the Federal Aviation 
Administration, the airport operator shall submit a revised 
noise exposure map to the Secretary showing the new non-
compatible use or noise reduction.’’.
SEC. 425. AMENDMENT OF GENERAL FEE SCHEDULE PROVI-
SION. 
The amendment made by section 119(d) of the Avia-
tion and Transportation Security Act (115 Stat. 629) shall 
not be affected by the savings provisions contained in sec-
tion 141 of that Act (115 Stat. 643).
100
SEC. 426. IMPROVEMENT OF CURRICULUM STANDARDS FOR 
AVIATION MAINTENANCE TECHNICIANS. 
(a) IN GENERAL.—The Administrator of the Federal 
Aviation Administration shall ensure that the training 
standards for airframe and powerplant mechanics under 
part 65 of title 14, Code of Federal Regulations, are up-
dated and revised in accordance with this section. The Ad-
ministrator may update and revise the training standards 
through the initiation of a formal rulemaking or by issuing 
an advisory circular or other agency guidance. 
(b) ELEMENTS FOR CONSIDERATION.—The updated 
and revised standards required under subsection (a) shall 
include those curriculum adjustments that are necessary to 
more accurately reflect current technology and maintenance 
practices. 
(c) MINIMUM TRAINING HOURS.—In making adjust-
ments to the maintenance curriculum requirements pursu-
ant to this section, the current requirement of 1900 min-
imum training hours shall be maintained. 
(d) CERTIFICATION.—Any adjustment or modification 
of current curriculum standards made pursuant to this sec-
tion shall be reflected in the certification examinations of 
airframe and powerplant mechanics. 
(e) COMPLETION.—The revised and updated training 
standards required by subsection (a) shall be completed not
101
later than 12 months after the date of enactment of this 
Act. 
(f) PERIODIC REVIEWS AND UPDATES.—The Adminis-
trator shall review the content of the curriculum standards 
for training airframe and powerplant mechanics referred 
to in subsection (a) every 3 years after completion of the 
revised and updated training standards required under sub-
section (a) as necessary to reflect current technology and 
maintenance practices. 
SEC. 427. TASK FORCE ON FUTURE OF AIR TRANSPOR-
TATION SYSTEM. 
(a) IN GENERAL.—The President shall establish a task 
force to work with the Next Generation Air Transportation 
System Joint Program Office authorized under section 
106(k)(3). 
(b) MEMBERSHIP.—The task force shall be composed 
of representatives, appointed by the President, from air car-
riers, general aviation, pilots, and air traffic controllers 
and the following government organizations: 
(1) The Federal Aviation Administration. 
(2) The National Aeronautics and Space Admin-
istration. 
(3) The Department of Defense. 
(4) The Department of Homeland Security.
102
(5) The National Oceanic and Atmospheric Ad-
ministration. 
(6) Other government organizations designated 
by the President. 
(c) FUNCTION.—The function of the task force shall be 
to develop an integrated plan to transform the Nation’s air 
traffic control system and air transportation system to meet 
its future needs. 
(d) PLAN.—Not later than 1 year after the date of es-
tablishment of the task force, the task force shall transmit 
to the President and Congress a plan outlining the overall 
strategy, schedule, and resources needed to develop and de-
ploy the Nation’s next generation air traffic control system 
and air transportation system. 
SEC. 428. AIR QUALITY IN AIRCRAFT CABINS. 
(a) IN GENERAL.—The Administrator of the Federal 
Aviation Administration shall undertake the studies and 
analysis called for in the report of the National Research 
Council entitled ‘‘The Airliner Cabin Environment and the 
Health of Passengers and Crew’’. 
(b) REQUIRED ACTIVITIES.—In carrying out this sec-
tion, the Administrator, at a minimum, shall—
(1) conduct surveillance to monitor ozone in the 
cabin on a representative number of flights and air-
103
craft to determine compliance with existing Federal 
Aviation Regulations for ozone; 
(2) collect pesticide exposure data to determine 
exposures of passengers and crew; and 
(3) analyze samples of residue from aircraft ven-
tilation ducts and filters after air quality incidents to 
identify the allergens, diseases, and other contami-
nants to which passengers and crew were exposed. 
(c) REPORT.—Not later than 30 months after the date 
of enactment of this Act, the Administrator shall transmit 
to Congress a report on the findings of the Administrator 
under this section. 
SEC. 
429. 
RECOMMENDATIONS 
CONCERNING 
TRAVEL 
AGENTS. 
(a) REPORT.—Not later than 6 months after the date 
of enactment of this Act, the Secretary of Transportation 
shall transmit to Congress a report on any actions that 
should be taken with respect to recommendations made by 
the National Commission to Ensure Consumer Information 
and Choice in the Airline Industry on—
(1) the travel agent arbiter program; and 
(2) the special box on tickets for agents to in-
clude their service fee charges.
104
(b) CONSULTATION.—In preparing this report, the 
Secretary shall consult with representatives from the airline 
and travel agent industry. 
SEC. 430. TASK FORCE ON ENHANCED TRANSFER OF APPLI-
CATIONS OF TECHNOLOGY FOR MILITARY 
AIRCRAFT TO CIVILIAN AIRCRAFT. 
(a) IN GENERAL.—The President shall establish a task 
force to look for better methods for ensuring that technology 
developed for military aircraft is more quickly and easily 
transferred to applications for improving and modernizing 
the fleet of civilian aircraft. 
(b) MEMBERSHIP.—The task force shall be composed 
of the Secretary of Transportation who shall be the chair 
of the task force and representatives, appointed by the Presi-
dent, from the following: 
(1) The Department of Transportation. 
(2) The Federal Aviation Administration. 
(3) The Department of Defense. 
(4) The National Aeronautics and Space Admin-
istration. 
(5) The aircraft manufacturing industry. 
(6) Such other organizations as the President 
may designate. 
(c) REPORT.—Not later than 1 year after the date of 
enactment of this Act, the task force shall report to Congress
105
on the methods looked at by the task force for ensuring the 
transfer of applications described in subsection (a).
SEC. 431. REIMBURSEMENT FOR LOSSES INCURRED BY 
GENERAL AVIATION ENTITIES. 
(a) IN GENERAL.—The Secretary of Transportation 
may make grants to reimburse the following general avia-
tion entities for the security costs incurred and revenue fore-
gone as a result of the restrictions imposed by the Federal 
Government following the terrorist attacks on the United 
States that occurred on September 11, 2001, or the military 
action to free the people of Iraq that commenced in March 
2003: 
(1) General aviation entities that operate at 
Ronald Reagan Washington National Airport. 
(2) Airports that are located within 15 miles of 
Ronald Reagan Washington National Airport and 
were operating under security restrictions on the date 
of enactment of this Act and general aviation entities 
operating at those airports. 
(3) General aviation entities that were affected 
by Federal Aviation Administration Notices to Air-
men FDC 2/0199 and 3/1862 and section 352 of the 
Department of Transportation and Related Agencies 
Appropriations Act, 2003 (P.L. 108–7, Division I).
106
(4) General aviation entities affected by imple-
mentation of section 44939 of title 49, United States 
Code. 
(5) Any other general aviation entity that is pre-
vented from doing business or operating by an action 
of the Federal Government prohibiting access to air-
space by that entity. 
(b) DOCUMENTATION.—Reimbursement under this sec-
tion shall be made in accordance with sworn financial 
statements or other appropriate data submitted by each 
general aviation entity demonstrating the costs incurred 
and revenue foregone to the satisfaction of the Secretary. 
(c) GENERAL AVIATION ENTITY DEFINED.—In this 
section, the term ‘‘general aviation entity’’ means any per-
son (other than a scheduled air carrier or foreign air car-
rier, as such terms are defined in section 40102 of title 49, 
United States Code) that—
(1) operates nonmilitary aircraft under part 91 
of title 14, Code of Federal Regulations, for the pur-
pose of conducting its primary business; 
(2) manufactures nonmilitary aircraft with a 
maximum seating capacity of fewer than 20 pas-
sengers or aircraft parts to be used in such aircraft; 
(3) provides services necessary for nonmilitary 
operations under such part 91; or
107
(4) operates an airport, other than a primary 
airport (as such terms are defined in such section 
40102), that—
(A) is listed in the national plan of inte-
grated airport systems developed by the Federal 
Aviation Administration under section 47103 of 
such title; or 
(B) is normally open to the public, is lo-
cated within the confines of enhanced class B 
airspace (as defined by the Federal Aviation Ad-
ministration in Notice to Airmen FDC 1/0618), 
and was closed as a result of an order issued by 
the Federal Aviation Administration in the pe-
riod beginning September 11, 2001, and ending 
January 1, 2002, and remained closed as a re-
sult of that order on January 1, 2002. 
Such term includes fixed based operators, flight schools, 
manufacturers of general aviation aircraft and products, 
persons engaged in nonscheduled aviation enterprises, and 
general aviation independent contractors. 
(d) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to carry out this section 
$100,000,000. Such sums shall remain available until ex-
pended.
108
SEC. 432. IMPASSE PROCEDURES FOR NATIONAL ASSOCIA-
TION OF AIR TRAFFIC SPECIALISTS. 
(a) FAILURE OF CURRENT NEGOTIATIONS.—If, within 
30 days after the date of enactment of this Act, the Federal 
Aviation Administration and the exclusive bargaining rep-
resentative of the National Association of Air Traffic Spe-
cialists have failed to achieve agreement through a medi-
ation process of the Federal Mediation and Conciliation 
Service, the current labor negotiation shall be treated for 
purposes of this section to have failed. 
(b) SUBMISSION TO IMPASSE PANEL.—Not later than 
30 days after the negotiation has failed under subsection 
(a), the parties to the negotiation shall submit unresolved 
issues to the Federal Service Impasses Panel described in 
section 7119(c) of title 5, United States Code, for final and 
binding resolution. 
(c) ASSISTANCE.—The Panel shall render assistance to 
the parties in resolving their dispute in accordance with 
section 7119 of title 5, United States Code, and parts 2470 
and 2471 of title 5, Code of Federal Regulations. 
(d) DETERMINATION.—The Panel shall make a just 
and reasonable determination of the matters in dispute. In 
arriving at such determination, the Panel shall specify the 
basis for its findings, taking into consideration such rel-
evant factors as are normally and customarily considered 
in the determination of wages or impasse Panel pro-
109
ceedings. The Panel shall also take into consideration the 
financial ability of the Administration to pay. 
(e) EFFECT OF PANEL DETERMINATION.—The deter-
mination of the Panel shall be final and binding upon the 
parties for the period prescribed by the Panel or a period 
otherwise agreed to by the parties. 
(f) REVIEW.—The determination of the Panel shall be 
subject to review in the manner prescribed in chapter 71 
of title 5, United States Code. 
SEC. 433. FAA INSPECTOR TRAINING. 
(a) STUDY.—
(1) IN GENERAL.—The Comptroller General shall 
conduct a study of the training of the aviation safety 
inspectors of the Federal Aviation Administration (in 
this section referred to as ‘‘FAA inspectors’’). 
(2) CONTENTS.—The study shall include—
(A) an analysis of the type of training pro-
vided to FAA inspectors; 
(B) actions that the Federal Aviation Ad-
ministration has undertaken to ensure that FAA 
inspectors receive up-to-date training on the lat-
est technologies; 
(C) the extent of FAA inspector training 
provided by the aviation industry and whether
110
such training is provided without charge or on 
a quid-pro-quo basis; and 
(D) the amount of travel that is required of 
FAA inspectors in receiving training. 
(3) REPORT.—Not later than 1 year after the 
date of enactment of this Act, the Comptroller General 
shall transmit to the Committee on Transportation 
and Infrastructure of the House of Representatives 
and the Committee on Commerce, Science, and Trans-
portation of the Senate a report on the results of the 
study. 
(b) SENSE OF THE HOUSE.—It is the sense of the 
House of Representatives that—
(1) FAA inspectors should be encouraged to take 
the most up-to-date initial and recurrent training on 
the latest aviation technologies; 
(2) FAA inspector training should have a direct 
relation to an individual’s job requirements; and 
(3) if possible, a FAA inspector should be al-
lowed to take training at the location most convenient 
for the inspector. 
(c) WORKLOAD OF INSPECTORS.—
(1) 
STUDY
BY
NATIONAL
ACADEMY
OF 
SCIENCES.—Not later than 90 days after the date of 
enactment of this Act, the Administrator of the Fed-
111
eral Aviation Administration shall make appropriate 
arrangements for the National Academy of Sciences to 
conduct a study of the assumptions and methods used 
by the Federal Aviation Administration to estimate 
staffing standards for FAA inspectors to ensure prop-
er oversight over the aviation industry, including the 
designee program. 
(2) CONTENTS.—The study shall include the fol-
lowing: 
(A) A suggested method of modifying FAA 
inspectors staffing models for application to cur-
rent local conditions or applying some other ap-
proach to developing an objective staffing stand-
ard. 
(B) The approximate cost and length of 
time for developing such models. 
(3) REPORT.—Not later than 12 months after the 
initiation of the arrangements under subsection (a), 
the National Academy of Sciences shall transmit to 
Congress a report on the results of the study. 
SEC. 434. PROHIBITION ON AIR TRAFFIC CONTROL PRIVAT-
IZATION. 
(a) IN GENERAL.—The Secretary of Transportation 
may not authorize the transfer of the air traffic separation 
and control functions operated by the Federal Aviation Ad-
112
ministration on the date of enactment of this Act to a pri-
vate entity or to a public entity other than the United 
States Government. 
(b) CONTRACT TOWER PROGRAM.—Subsection (a) 
shall not apply to the contract tower program authorized 
by section 47124 of title 49, United States Code. 
SEC. 435. AIRFARES FOR MEMBERS OF THE ARMED FORCES. 
(a) FINDINGS.—Congress finds that—
(1) the Armed Forces is comprised of approxi-
mately 1,400,000 members who are stationed on ac-
tive duty at more than 6,000 military bases in 146 
different countries; 
(2) the United States is indebted to the members 
of the Armed Forces, many of whom are in grave 
danger due to their engagement in, or exposure to, 
combat; 
(3) military service, especially in the current 
war against terrorism, often requires members of the 
Armed Forces to be separated from their families on 
short notice, for long periods of time, and under very 
stressful conditions; 
(4) the unique demands of military service often 
preclude members of the Armed Forces from pur-
chasing discounted advance airline tickets in order to 
visit their loved ones at home; and
113
(5) it is the patriotic duty of the people of the 
United States to support the members of the Armed 
Forces who are defending the Nation’s interests 
around the world at great personal sacrifice. 
(b) SENSE OF CONGRESS.—It is the sense of Congress 
that each United States air carrier should—
(1) establish for all members of the Armed Forces 
on active duty reduced air fares that are comparable 
to the lowest airfare for ticketed flights; and 
(2) offer flexible terms that allow members of the 
Armed Forces on active duty to purchase, modify, or 
cancel tickets without time restrictions, fees, and pen-
alties.
SEC. 436. AIR CARRIERS REQUIRED TO HONOR TICKETS 
FOR SUSPENDED AIR SERVICE. 
Section 145(c) of the Aviation and Transportation Se-
curity Act (49 U.S.C. 40101 note; 115 stat. 645) is amended 
by striking ‘‘more than’’ and all that follows through 
‘‘after’’ and inserting ‘‘more than 36 months after’’. 
SEC. 437. INTERNATIONAL AIR SHOW. 
(a) STUDY.—The Secretary of Transportation shall 
study the feasibility of the United States hosting a world-
class international air show. 
(b) REPORT.—Not later than 9 months after the date 
of enactment of this Act, the Secretary shall transmit to
114
Congress a report on the results of the study conducted 
under subsection (a) together with recommendations con-
cerning potential locations at which the air show could be 
held. 
SEC. 438. DEFINITION OF AIR TRAFFIC CONTROLLER. 
(a) CIVIL SERVICE RETIREMENT SYSTEM.—Section 
8331 of title 5, United States Code, is amended—
(1) by striking ‘‘and’’ at the end of paragraph 
(27); 
(2) by striking the period at the end of para-
graph (28) and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(29) ‘air traffic controller’ or ‘controller’ 
means—
‘‘(A) a controller within the meaning of sec-
tion 2109(1); and 
‘‘(B) a civilian employee of the Department 
of Transportation or the Department of Defense 
holding a supervisory, managerial, executive, 
technical, semiprofessional, or professional posi-
tion for which experience as a controller (within 
the meaning of section 2109(1)) is a pre-
requisite.’’. 
(b) FEDERAL EMPLOYEES’ RETIREMENT SYSTEM.—
Section 8401 of title 5, United States Code, is amended—
115
(1) by striking ‘‘and’’ at the end of paragraph 
(33); 
(2) by striking the period at the end of para-
graph (34) and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(35) ‘air traffic controller’ or ‘controller’ 
means—
‘‘(A) a controller within the meaning of sec-
tion 2109(1); and 
‘‘(B) a civilian employee of the Department 
of Transportation or the Department of Defense 
holding a supervisory, managerial, executive, 
technical, semiprofessional, or professional posi-
tion for which experience as a controller (within 
the meaning of section 2109(1)) is a pre-
requisite.’’. 
(c) MANDATORY SEPARATION TREATMENT NOT AF-
FECTED.—
(1) CIVIL SERVICE RETIREMENT SYSTEM.—Sec-
tion 8335(a) of title 5, United States Code, is amend-
ed by adding at the end the following: ‘‘For purposes 
of this subsection, the term ‘air traffic controller’ or 
‘controller’ has the meaning given to it under section 
8331(29)(A).’’.
116
(2) FEDERAL
EMPLOYEES’ RETIREMENT
SYS-
TEM.—Section 8425(a) of title 5, United States Code, 
is amended by adding at the end the following: ‘‘For 
purposes of this subsection, the term ‘air traffic con-
troller’ or ‘controller’ has the meaning given to it 
under section 8401(35)(A).’’. 
(d) EFFECTIVE DATE.—This section and the amend-
ments made by this section—
(1) shall take effect on the 60th day after the 
date of enactment of this Act; and 
(2) shall apply with respect to—
(A) any annuity entitlement to which is 
based on an individual’s separation from service 
occurring on or after that 60th day; and 
(B) any service performed by any such in-
dividual before, on, or after that 60th day, sub-
ject to subsection (e). 
(e) DEPOSIT REQUIRED FOR CERTAIN PRIOR SERVICE 
TO BE CREDITABLE AS CONTROLLER SERVICE.—
(1) DEPOSIT
REQUIREMENT.—For purposes of 
determining eligibility for immediate retirement 
under section 8412(e) of title 5, United States Code, 
the amendment made by subsection (b) shall, with re-
spect to any service described in paragraph (2), be 
disregarded unless there is deposited into the Civil
117
Service Retirement and Disability Fund, with respect 
to such service, in such time, form, and manner as 
the Office of Personnel Management by regulation re-
quires, an amount equal to the amount by which—
(A) the deductions from pay which would 
have been required for such service if the amend-
ments made by this section had been in effect 
when such service was performed, exceeds 
(B) the unrefunded deductions or deposits 
actually made under subchapter II of chapter 84 
of such title 5 with respect to such service. 
The amount under the preceding sentence shall in-
clude interest, computed under paragraphs (2) and 
(3) of section 8334(e) of such title 5. 
(2) PRIOR
SERVICE
DESCRIBED.—This sub-
section applies with respect to any service performed 
by an individual, before the 60th day following the 
date of enactment of this Act, as an employee de-
scribed in section 8401(35)(B) of such title 5 (as set 
forth in subsection (b)). 
SEC. 439. JUSTIFICATION FOR AIR DEFENSE IDENTIFICA-
TION ZONE. 
(a) IN GENERAL.—If the Administrator of the Federal 
Aviation Administration establishes an Air Defense Identi-
fication Zone (in this section referred as an ‘‘ADIZ’’), the
118
Administrator shall transmit, not later than 60 days after 
the date of establishing the ADIZ, to the Committee on 
Transportation and Infrastructure of the House of Rep-
resentatives and the Committee on Commerce, Science, and 
Transportation of the Senate a report containing an expla-
nation of the need for the ADIZ. The Administrator also 
shall transmit to the Committees updates of the report every 
60 days until the ADIZ is rescinded. The reports and up-
dates shall be transmitted in classified form. 
(b) EXISTING ADIZ.—If an ADIZ is in effect on the 
date of enactment of this Act, the Administrator shall trans-
mit an initial report under subsection (a) not later than 
30 days after such date of enactment. 
(c) DEFINITION.—In this section, the terms ‘‘Air De-
fense Identification Zone’’ and ‘‘ADIZ’’ each mean a zone 
established by the Administrator with respect to airspace 
under 18,000 feet in approximately a 15- to 38-mile radius 
around Washington, District of Columbia, for which secu-
rity measures are extended beyond the existing 15-mile no-
fly zone around Washington and in which general aviation 
aircraft are required to adhere to certain procedures issued 
by the Administrator. 
SEC. 440. INTERNATIONAL AIR TRANSPORTATION. 
It is the sense of Congress that, in an effort to mod-
ernize its regulations, the Department of Transportation
119
should formally define ‘‘Fifth Freedom’’ and ‘‘Seventh Free-
dom’’ consistently for both scheduled and charter passenger 
and cargo traffic.
SEC. 441. REIMBURSEMENT OF AIR CARRIERS FOR CERTAIN 
SCREENING AND RELATED ACTIVITIES. 
The Secretary of Transportation, subject to the avail-
ability of funds (other than amounts in the Aviation Trust 
Fund) provided for this purpose, shall reimburse air car-
riers and airports for the following: 
(1) All screening and related activities that the 
air carriers or airports are still performing or con-
tinuing to be responsible for, including—
(A) the screening of catering supplies; 
(B) checking documents at security check-
points; 
(C) screening of passengers; and 
(D) screening of persons with access to air-
craft. 
(2) The provision of space and facilities used to 
perform screening functions if such space and facili-
ties have been previously used, or were intended to be 
used, for revenue-producing purposes.
120
SEC. 442. GENERAL AVIATION FLIGHTS AT RONALD REAGAN 
WASHINGTON NATIONAL AIRPORT. 
It is the sense of Congress that Ronald Reagan Wash-
ington National Airport should be open to general aviation 
flights as soon as possible.
TITLE V—AIRPORT 
DEVELOPMENT 
SEC. 501. DEFINITIONS. 
(a) IN GENERAL.—Section 47102 is amended—
(1) by redesignating paragraphs (19) and (20) 
as paragraphs (24) and (25), respectively; 
(2) by inserting after paragraph (18) the fol-
lowing: 
‘‘(23) ‘small hub airport’ means a commercial 
service airport that has at least 0.05 percent but less 
than 0.25 percent of the passenger boardings.’’; 
(3) in paragraph (10) by striking subparagraphs 
(A) and (B) and inserting following: 
‘‘(A) means, unless the context indicates 
otherwise, revenue passenger boardings in the 
United States in the prior calendar year on an 
aircraft in service in air commerce, as the Sec-
retary determines under regulations the Sec-
retary prescribes; and 
‘‘(B) includes passengers who continue on 
an aircraft in international flight that stops at
121
an airport in the 48 contiguous States, Alaska, 
or Hawaii for a nontraffic purpose.’’; 
(4) by redesignating paragraphs (10) through 
(18) as paragraphs (14) through (22), respectively; 
(5) by inserting after paragraph (9) the fol-
lowing: 
‘‘(10) ‘large hub airport’ means a commercial 
service airport that has at least 1.0 percent of the 
passenger boardings. 
‘‘(12) ‘medium hub airport’ means a commercial 
service airport that has at least 0.25 percent but less 
than 1.0 percent of the passenger boardings. 
‘‘(13) ‘nonhub airport’ means a commercial serv-
ice airport that has less than 0.05 percent of the pas-
senger boardings.’’; and 
(6) by striking paragraph (6) and inserting the 
following: 
‘‘(6) ‘amount made available under section 
48103’ or ‘amount newly made available’ means the 
amount authorized for grants under section 48103 as 
that amount may be limited in that year by a subse-
quent law, but as determined without regard to grant 
obligation recoveries made in that year or amounts 
covered by section 47107(f).’’.
122
(b) CONFORMING AMENDMENT.—Section 47116(b)(1) 
is amended by striking ‘‘(as defined in section 41731 of this 
title)’’. 
SEC. 502. REPLACEMENT OF BAGGAGE CONVEYOR SYS-
TEMS. 
Section 47102(3)(B)(x) is amended by striking the pe-
riod at the end and inserting the following: ‘‘; except that 
such activities shall be eligible for funding under this sub-
chapter only using amounts apportioned under section 
47114.’’. 
SEC. 503. SECURITY COSTS AT SMALL AIRPORTS. 
(a) SECURITY COSTS.—Section 47102(3)(J) is amend-
ed to read as follows: 
‘‘(J) in the case of a nonhub airport or an 
airport that is not a primary airport in fiscal 
year 2004, direct costs associated with new, ad-
ditional, or revised security requirements im-
posed on airport operators by law, regulation, or 
order on or after September 11, 2001, if the Gov-
ernment’s share is paid only from amounts ap-
portioned to a sponsor under section 47114(c) or 
47114(d)(3)(A).’’. 
(b) CONFORMING AMENDMENT.—Section 47110(b)(2) 
is amended—
123
(1) in subparagraph (D) by striking ‘‘, 
47102(3)(K), or 47102(3)(L)’’; and 
(2) by aligning the margin of subparagraph (D) 
with the margin of subparagraph (B). 
SEC. 504. WITHHOLDING OF PROGRAM APPLICATION AP-
PROVAL. 
Section 47106(d) is amended—
(1) in paragraph (1) by striking ‘‘section 
47114(c) and (e) of this title’’ and inserting ‘‘sub-
sections (c), (d), and (e) of section 47114’’; and 
(2) by adding at the end the following: 
‘‘(4) If the Secretary withholds a grant to an airport 
from the discretionary fund under section 47115 or from 
the small airport fund under section 47116 on the grounds 
that the sponsor has violated an assurance or requirement 
of this subchapter, the Secretary shall follow the procedures 
of this subsection.’’.
SEC. 505. RUNWAY SAFETY AREAS. 
Section 47106 is amended by adding at the end the 
following: 
‘‘(h) RUNWAY SAFETY AREAS.—The Secretary may 
approve an application under this chapter for a project 
grant to construct, reconstruct, repair, or improve a run-
way only if the Secretary receives written assurances, satis-
factory to the Secretary, that the sponsor will undertake,
124
to the maximum extent practical, improvement of the run-
way’s safety area to meet the standards of the Federal Avia-
tion Administration.’’.
SEC. 506. DISPOSITION OF LAND ACQUIRED FOR NOISE 
COMPATIBILITY PURPOSES. 
Section 47107(c) is amended by adding at the end the 
following: 
‘‘(4) Notwithstanding paragraph (2)(A)(iii), an air-
port owner or operator may retain all or any portion of 
the proceeds from a land disposition described in that para-
graph if the Secretary finds that the use of the land will 
be compatible with airport purposes and the proceeds re-
tained will be used for airport development or to carry out 
a noise compatibility program under section 47504(c).’’. 
SEC. 507. GRANT ASSURANCES. 
(a) HANGAR CONSTRUCTION.—Section 47107(a) is 
amended—
(1) by striking ‘‘and’’ at the end of paragraph 
(19); 
(2) by striking the period at the end of para-
graph (20) and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(21) if the airport owner or operator and a per-
son who owns an aircraft agree that a hangar is to 
be constructed at the airport for the aircraft at the
125
aircraft owner’s expense, the airport owner or oper-
ator will grant to the aircraft owner for the hangar 
a long-term lease (of not less than 50 years) that is 
subject to such terms and conditions on the hangar 
as the airport owner or operator may impose.’’. 
(b) 
STATUTE
OF
LIMITATIONS..—Section 
47107(l)(5)(A) is amended by inserting ‘‘or any other gov-
ernmental entity’’ after ‘‘sponsor’’. 
(c) AUDIT
CERTIFICATION.—Section 47107(m) is 
amended—
(1) in paragraph (1) by striking ‘‘promulgate 
regulations that’’ and inserting ‘‘include a provision 
in the compliance supplement provisions to’’; 
(2) in paragraph (1) by striking ‘‘and opinion 
of the review’’; and 
(3) by striking paragraph (3). 
SEC. 508. ALLOWABLE PROJECT COSTS. 
(a) CONSTRUCTION
OR MODIFICATION
OF PUBLIC 
PARKING FACILITIES FOR SECURITY PURPOSES.—Section 
47110 is amended—
(1) in subsection (f) by striking ‘‘subsection (d)’’ 
and inserting ‘‘subsections (d) and (h)’’; and 
(2) by adding at the end the following: 
‘‘(h) CONSTRUCTION
OR MODIFICATION
OF PUBLIC 
PARKING FACILITIES FOR SECURITY PURPOSES.—Notwith-
126
standing subsection (f)(1), a cost of constructing or modi-
fying a public parking facility for passenger automobiles 
to comply with a regulation or directive of the Department 
of Homeland Security shall be treated as an allowable air-
port development project cost.’’. 
(b) DEBT
FINANCING.—Section 47110 is further 
amended by adding at the end the following: 
‘‘(i) DEBT FINANCING.—In the case of an airport that 
is not a medium hub airport or large hub airport, the Sec-
retary may determine that allowable airport development 
project costs include payments of interest, commercial bond 
insurance, and other credit enhancement costs associated 
with a bond issue to finance the project.’’. 
(c) CLARIFICATION OF ALLOWABLE COSTS..—Section 
47110(b)(1) is amended by inserting before the semicolon 
at the end ‘‘and any cost of moving a Federal facility im-
peding the project if the rebuilt facility is of an equivalent 
size and type’’. 
(d) TECHNICAL AMENDMENTS.—Section 47110(e) is 
amended by aligning the margin of paragraph (6) with the 
margin of paragraph (5). 
SEC. 509. APPORTIONMENTS TO PRIMARY AIRPORTS. 
(a) FORMULA CHANGES.—Section 47114(c)(1)(A) is 
amended by striking clauses (iv) and (v) and by inserting 
the following:
127
‘‘(iv) $.65 for each of the next 500,000 
passenger boardings at the airport during 
the prior calendar year; 
‘‘(v) $.50 cents for each of the next 
2,500,000 passenger boardings at the air-
port during the prior calendar year; and 
‘‘(vi) $.45 cents for each additional 
passenger boarding at the airport during 
the prior calendar year.’’. 
(b) SPECIAL RULE
FOR FISCAL YEARS 2004 AND 
2005.—Section 47114(c)(1) is amended by adding at the 
end the following: 
‘‘(F) SPECIAL RULE FOR FISCAL YEARS 2004 
AND
2005.—Notwithstanding subparagraph (A) 
and the absence of scheduled passenger aircraft 
service at an airport, the Secretary may appor-
tion in fiscal years 2004 and 2005 to the sponsor 
of the airport an amount equal to the amount 
apportioned to that sponsor in fiscal year 2002 
or 2003, whichever amount is greater, if the Sec-
retary finds that—
‘‘(i) the passenger boardings at the air-
port were below 10,000 in calendar year 
2002;
128
‘‘(ii) the airport had at least 10,000 
passenger boardings and scheduled pas-
senger aircraft service in either calendar 
year 2000 or 2001; and 
‘‘(iii) 
the 
reason 
that 
passenger 
boardings described in clause (i) were below 
10,000 was the decrease in passengers fol-
lowing the terrorist attacks of September 11, 
2001.’’. 
SEC. 510. CARGO AIRPORTS. 
Section 47114(c)(2) is amended—
(1) in the paragraph heading by striking 
‘‘ONLY’’; and 
(2) in subparagraph (A) by striking ‘‘3 percent’’ 
and inserting ‘‘3.5 percent’’. 
SEC. 511. CONSIDERATIONS IN MAKING DISCRETIONARY 
GRANTS. 
Section 47115(d) is amended to read as follows: 
‘‘(d) CONSIDERATIONS.—
‘‘(1) FOR CAPACITY ENHANCEMENT PROJECTS.—
In selecting a project for a grant to preserve and im-
prove capacity funded in whole or in part from the 
fund, the Secretary shall consider—
‘‘(A) the effect that the project will have on 
overall national transportation system capacity;
129
‘‘(B) the benefit and cost of the project, in-
cluding, in the case of a project at a reliever air-
port, the number of operations projected to be di-
verted from a primary airport to the reliever 
airport as a result of the project, as well as the 
cost savings projected to be realized by users of 
the local airport system; 
‘‘(C) the financial commitment from non-
United States Government sources to preserve or 
improve airport capacity; 
‘‘(D) the airport improvement priorities of 
the States to the extent such priorities are not in 
conflict with subparagraphs (A) and (B); and 
‘‘(E) the projected growth in the number of 
passengers or aircraft that will be using the air-
port at which the project will be carried out. 
‘‘(2) FOR ALL PROJECTS.—In selecting a project 
for a grant described in paragraph (1), the Secretary 
shall consider whether—
‘‘(A) funding has been provided for all other 
projects qualifying for funding during the fiscal 
year under this chapter that have attained a 
higher score under the numerical priority system 
employed by the Secretary in administering the 
fund; and
130
‘‘(B) the sponsor will be able to commence 
the work identified in the project application in 
the fiscal year in which the grant is made or 
within 6 months after the grant is made, which-
ever is later.’’. 
SEC. 512. FLEXIBLE FUNDING FOR NONPRIMARY AIRPORT 
APPORTIONMENTS. 
(a) IN GENERAL.—Section 47117(c) is amended to 
read as follows: 
‘‘(c) USE OF SPONSOR’S APPORTIONED AMOUNTS AT 
PUBLIC USE AIRPORTS.—
‘‘(1) OF SPONSOR.—An amount apportioned to a 
sponsor of an airport under section 47114(c) or 
47114(d)(3)(A) is available for grants for any public-
use airport of the sponsor included in the national 
plan of integrated airport systems. 
‘‘(2) IN SAME STATE OR AREA.—A sponsor of an 
airport may make an agreement with the Secretary 
of Transportation waiving the sponsor’s claim to any 
part of the amount apportioned for the airport under 
section 47114(c) or 47114(d)(3)(A) if the Secretary 
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 determined by 
the Secretary.’’.
131
(b) PROJECT GRANT AGREEMENTS.—Section 47108(a) 
is amended by inserting ‘‘or 47114(d)(3)(A)’’ after ‘‘under 
section 47114(c)’’. 
(c) ALLOWABLE PROJECT COSTS.—Section 47110 is 
further amended—
(1) in subsection (b)(2)(C) by striking ‘‘of this 
title’’ and inserting ‘‘or section 47114(d)(3)(A)’’; 
(2) in subsection (g)—
(A) 
by 
inserting 
‘‘or 
section 
47114(d)(3)(A)’’ after ‘‘of section 47114(c)’’; and 
(B) by striking ‘‘of project’’ and inserting 
‘‘of the project’’; and 
(3) by adding at the end the following: 
‘‘(j) NONPRIMARY AIRPORTS.—The Secretary may 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 if the Government’s share of such costs is paid only 
with funds apportioned to the airport sponsor under section 
47114(d)(3)(A) and if the Secretary determines that the 
sponsor has made adequate provision for financing airside 
needs of the airport.’’. 
(d) 
TERMINAL
DEVELOPMENT
COSTS.—Section 
47119(b) is amended—
(1) by striking ‘‘or’’ at the end of paragraph (3);
132
(2) by striking the period at the end of para-
graph (4) and inserting ‘‘; or’’; and 
(3) by adding at the end the following: 
‘‘(5) to a sponsor of a nonprimary airport, any 
part of amounts apportioned to the sponsor for the 
fiscal year under section 47114(d)(3)(A) for project 
costs allowable under section 47110(d).’’. 
SEC. 513. USE OF APPORTIONED AMOUNTS. 
(a) SPECIAL APPORTIONMENT CATEGORIES.—Section 
47117(e)(1)(A) is amended—
(1) by striking ‘‘of this title’’ the first place it 
appears and inserting a comma; and 
(2) by striking ‘‘of this title’’ the second place it 
appears and inserting ‘‘, for noise mitigation projects 
approved in an environmental record of decision for 
an airport development project under this title, for 
compatible land use planning and projects carried 
out by State and local governments under section 
47140, and for airport development described in sec-
tion 47102(3)(F) or 47102(3)(K) to comply with the 
Clean Air Act (42 U.S.C. 7401 et seq.)’’. 
(b) ELIMINATION OF SUPER RELIEVER SET-ASIDE.—
Section 47117(e)(1)(C) is repealed. 
(c) RECOVERED FUNDS.—Section 47117 is further 
amended by adding at the end the following:
133
‘‘(h) TREATMENT OF CANCELED OR REDUCED GRANT 
OBLIGATIONS.—For the purpose of determining compliance 
with a limitation, enacted in an appropriations Act, on 
the amount of grant obligations of funds made available 
by section 48103 that may be incurred in a fiscal year, 
an amount that is recovered by canceling or reducing a 
grant obligation of funds made available by section 48103 
shall be treated as a negative obligation that is to be netted 
against the obligation limitation as enacted and thus may 
permit the obligation limitation to be exceeded by an equal 
amount.’’. 
SEC. 514. MILITARY AIRPORT PROGRAM. 
Subsections (e) and (f) of section 47118 are each 
amended 
by 
striking 
‘‘$7,000,000’’ 
and 
inserting 
‘‘$10,000,000’’.
SEC. 515. TERMINAL DEVELOPMENT COSTS.
Section 47119(a) is amended to read as follows: 
‘‘(a) REPAYING BORROWED MONEY.—
‘‘(1) TERMINAL DEVELOPMENT COSTS INCURRED 
AFTER JUNE 30, 1970, AND BEFORE JULY 12, 1976.—
An amount apportioned under section 47114 and 
made available to the sponsor of a commercial service 
airport at which terminal development was carried 
out after June 30, 1970, and before July 12, 1976, is 
available to repay immediately money borrowed and
134
used to pay the costs for such terminal development 
if those costs would be allowable project costs under 
section 47110(d) if they had been incurred after Sep-
tember 3, 1982. 
‘‘(2) TERMINAL DEVELOPMENT COSTS INCURRED 
BETWEEN
JANUARY
1, 1992, AND
OCTOBER
31, 
1992.—An amount apportioned under section 47114 
and made available to the sponsor of a nonhub air-
port at which terminal development was carried out 
between January 1, 1992, and October 31, 1992, is 
available to repay immediately money borrowed and 
to pay the costs for such terminal development if those 
costs would be allowable project costs under section 
47110(d). 
‘‘(3) TERMINAL
DEVELOPMENT
COSTS
AT
PRI-
MARY AIRPORTS.—An amount apportioned under sec-
tion 47114 or available under subsection (b)(3) to a 
primary airport—
‘‘(A) that was a nonhub airport in the most 
recent year used to calculate apportionments 
under section 47114; 
‘‘(B) that is a designated airport under sec-
tion 47118 in fiscal year 2003; and
135
‘‘(C) at which terminal development is car-
ried out between January 2003 and August 
2004, 
is available to repay immediately money borrowed 
and used to pay the costs for such terminal develop-
ment if those costs would be allowable project costs 
under section 47110(d). 
‘‘(4) CONDITIONS FOR GRANT.—An amount is 
available for a grant under this subsection only if—
‘‘(A) the sponsor submits the certification 
required under section 47110(d); 
‘‘(B) the Secretary of Transportation de-
cides that using the amount to repay the bor-
rowed money will not defer an airport develop-
ment project outside the terminal area at that 
airport; and 
‘‘(C) amounts available for airport develop-
ment under this subchapter will not be used for 
additional terminal development projects at the 
airport for at least 3 years beginning on the date 
the grant is used to repay the borrowed money. 
‘‘(5) APPLICABILITY OF CERTAIN LIMITATIONS.—
A grant under this subsection shall be subject to the 
limitations in subsection (b)(1) and (2).’’.
136
SEC. 516. CONTRACT TOWERS. 
Section 47124(b) is amended—
(1) in paragraph (1) by striking ‘‘on December 
30, 1987,’’ and inserting ‘‘on date of enactment of the 
Flight 100—Century of Aviation Reauthorization 
Act’’; 
(2) in the heading for paragraph (3) by striking 
‘‘PILOT’’; 
(3) 
in 
paragraph 
(4)(C) 
by 
striking 
‘‘$1,100,000’’ and inserting ‘‘$1,500,000’’; and 
(4) by striking ‘‘pilot’’ each place it appears. 
SEC. 517. AIRPORT SAFETY DATA COLLECTION. 
Section 47130 is amended to read as follows: 
‘‘§ 47130. Airport safety data collection 
‘‘Notwithstanding any other provision of law, the Ad-
ministrator of the Federal Aviation Administration may 
award a contract, using sole source or limited source au-
thority, or enter into a cooperative agreement with, or pro-
vide a grant from amounts made available under section 
48103 to, a private company or entity for the collection of 
airport safety data. In the event that a grant is provided 
under this section, the United States Government’s share 
of the cost of the data collection shall be 100 percent.’’. 
SEC. 518. AIRPORT PRIVATIZATION PILOT PROGRAM. 
(a) IN GENERAL.—Section 47134(b)(1) is amended—
137
(1) in subparagraph (A) by striking clauses (i) 
and (ii) and inserting the following: 
‘‘(i) in the case of a primary airport, 
by at least 65 percent of the scheduled air 
carriers serving the airport and by sched-
uled and nonscheduled air carriers whose 
aircraft landing at the airport during the 
preceding calendar year, had a total landed 
weight during the preceding calendar year 
of at least 65 percent of the total landed 
weight of all aircraft landing at the airport 
during such year; or 
‘‘(ii) by the Secretary at any nonpri-
mary airport after the airport has consulted 
with at least 65 percent of the owners of 
aircraft based at that airport, as deter-
mined by the Secretary.’’; 
(2) by redesignating subparagraph (B) as sub-
paragraph (C); and 
(3) by inserting after subparagraph (A) the fol-
lowing: 
‘‘(B) OBJECTION TO EXEMPTION.—An air 
carrier shall be deemed to have approved a spon-
sor’s application for an exemption under sub-
paragraph (A) unless the air carrier has sub-
138
mitted an objection, in writing, to the sponsor 
within 60 days of the filing of the sponsor’s ap-
plication with the Secretary, or within 60 days 
of the service of the application upon that air 
carrier, whichever is later.’’. 
(b) FEDERAL SHARE.—Section 47109(a) is amend-
ed—
(1) by inserting ‘‘and’’ at the end of paragraph 
(3); 
(2) by striking paragraph (4); and 
(3) by redesignating paragraph (5) as para-
graph (4). 
SEC. 519. INNOVATIVE FINANCING TECHNIQUES. 
(a) 
ELIGIBLE
PROJECTS.—Section 
47135(a) 
is 
amended—
(1) in the first sentence by inserting after ‘‘ap-
prove’’ the following: ‘‘after the date of enactment of 
the Flight 100—Century of Aviation Reauthorization 
Act’’; 
(2) in the first sentence by striking ‘‘20’’ and in-
serting ‘‘10’’; and 
(3) by striking the second sentence and inserting 
the following: ‘‘Such projects shall be located at air-
ports that are not medium or large hub airports.’’.
139
(b) INNOVATIVE FINANCING TECHNIQUES.—Section 
47135(c)(2) is amended—
(1) by striking subparagraphs (A) and (B); and 
(2) by redesignating subparagraphs (C) and (D) 
as subparagraphs (A) and (B), respectively. 
(c) SAVINGS CLAUSE.—The amendments made by this 
section shall not affect applications approved under section 
47135 of title 49, United States Code, before the date of 
enactment of this Act. 
SEC. 520. AIRPORT SECURITY PROGRAM. 
Section 47137 is amended—
(1) by redesignating subsections (e) and (f) as 
subsections (f) and (g), respectively; and 
(2) by inserting after subsection (d) the fol-
lowing: 
‘‘(e) ADMINISTRATION.—The Secretary, in cooperation 
with the Secretary of Homeland Security, shall administer 
the program authorized by this section.’’. 
SEC. 521. LOW-EMISSION AIRPORT VEHICLES AND INFRA-
STRUCTURE. 
(a) EMISSIONS CREDITS.—Subchapter I of chapter 
471 is amended by adding at the end the following: 
‘‘§ 47138. Emission credits for air quality projects 
‘‘(a) IN GENERAL.—The Secretary of Transportation 
and the Administrator of the Environmental Protection
140
Agency shall jointly agree on how to assure that airport 
sponsors receive appropriate emission credits for carrying 
out 
projects 
described 
in 
sections 
40117(a)(3)(G), 
47102(3)(K), and 47102(3)(L). Such agreement must in-
clude, at a minimum, the following conditions: 
‘‘(1) The provision of credits is consistent with 
the Clean Air Act (42 U.S.C. 7402 et seq.). 
‘‘(2) Credits generated by the emissions reduc-
tions are kept by the airport sponsor and may only 
be used for purposes of any current or future general 
conformity determination under the Clean Air Act or 
as offsets under the Environmental Protection Agen-
cy’s new source review program for projects on the 
airport or associated with the airport. 
‘‘(3) Credits are calculated and provided to air-
ports on a consistent basis nationwide. 
‘‘(4) Credits are provided to airport sponsors in 
a timely manner. 
‘‘(5) The establishment of a method to assure the 
Secretary that, for any specific airport project for 
which funding is being requested, the appropriate 
credits will be granted. 
‘‘(b) ASSURANCE OF RECEIPT OF CREDITS.—
‘‘(1) IN GENERAL.—As a condition for making a 
grant for a project described in section 47102(3)(K),
141
47102(3)(L), or 47139 or as a condition for granting 
approval to collect or use a passenger facility fee for 
a 
project 
described 
in 
section 
40117(a)(3)(G), 
47102(3)(K), 47102(3)(L), or 47139, the Secretary 
must receive assurance from the State in which the 
project is located, or from the Administrator of the 
Environmental Protection Agency where there is a 
Federal implementation plan, that the airport spon-
sor will receive appropriate emission credits in ac-
cordance with the conditions of this section. 
‘‘(2) AGREEMENT
ON
PREVIOUSLY
APPROVED 
PROJECTS.—The Secretary and the Administrator of 
the Environmental Protection Agency shall jointly 
agree on how to provide emission credits to airport 
projects previously approved under section 47136 
under terms consistent with the conditions enumer-
ated in this section.’’. 
(b) AIRPORT GROUND SUPPORT EQUIPMENT EMIS-
SIONS RETROFIT PILOT PROGRAM.—Subchapter I of chap-
ter 471 is further amended by adding at the end the fol-
lowing: 
‘‘§ 47139. Airport ground support equipment emissions 
retrofit pilot program 
‘‘(a) IN GENERAL.—The Secretary of Transportation 
shall carry out a pilot program at not more than 10 com-
142
mercial service airports under which the sponsors of such 
airports may use an amount made available under section 
48103 to retrofit existing eligible airport ground support 
equipment that burns conventional fuels to achieve lower 
emissions utilizing emission control technologies certified or 
verified by the Environmental Protection Agency. 
‘‘(b) LOCATION IN AIR QUALITY NONATTAINMENT OR 
MAINTENANCE AREAS.—A commercial service airport shall 
be eligible for participation in the pilot program only if 
the airport is located in an air quality nonattainment area 
(as defined in section 171(2) of the Clean Air Act (42 
U.S.C. 7501(2)) or a maintenance area referred to in sec-
tion 175A of such Act (42 U.S.C. 7505a). 
‘‘(c) SELECTION CRITERIA.—In selecting from among 
applicants for participation in the pilot program, the Sec-
retary shall give priority consideration to applicants that 
will achieve the greatest air quality benefits measured by 
the amount of emissions reduced per dollar of funds ex-
pended under the pilot program. 
‘‘(d) MAXIMUM AMOUNT.—Not more than $500,000 
may be expended under the pilot program at any single 
commercial service airport. 
‘‘(e) GUIDELINES.—The Secretary, in consultation 
with the Administrator of the Environmental Protection 
Agency, shall establish guidelines regarding the types of ret-
143
rofit projects eligible under the pilot program by consid-
ering remaining equipment useful life, amounts of emission 
reduction in relation to the cost of projects, and other fac-
tors necessary to carry out this section. The Secretary may 
give priority to ground support equipment owned by the 
airport and used for airport purposes. 
‘‘(f) ELIGIBLE EQUIPMENT DEFINED.—In this section, 
the term ‘eligible equipment’ means ground service or main-
tenance equipment that is located at the airport, is used 
to support aeronautical and related activities at the air-
port, and will remain in operation at the airport for the 
life or useful life of the equipment, whichever is earlier.’’. 
(c) ADDITION TO AIRPORT DEVELOPMENT.—Section 
47102(3) is further amended by striking subparagraphs (K) 
and (L) and inserting the following: 
‘‘(K) work necessary to construct or modify 
airport facilities to provide low-emission fuel 
systems, gate electrification, and other related 
air quality improvements at a commercial serv-
ice airport if the airport is located in an air 
quality nonattainment or maintenance area (as 
defined in sections 171(2) and 175A of the Clean 
Air Act (42 U.S.C. 7501(2), 7505a) and if such 
project will result in an airport receiving appro-
144
priate emission credits, as described in section 
47138. 
‘‘(L) converting vehicles and ground sup-
port equipment owned by a commercial service 
airport to low-emission technology or acquiring 
for use at a commercial service airport vehicles 
and ground support equipment that include low-
emission technology if the airport is located in 
an air quality nonattainment area (as defined 
in section 171(2) of the Clean Air Act (42 U.S.C. 
7501(2)) or a maintenance area referred to in 
section 175A of such Act (42 U.S.C. 7505a) and 
if such project will result in an airport receiving 
appropriate emission credits as described in sec-
tion 47138.’’. 
(d) ALLOWABLE PROJECT COST.—Section 47110(b) is 
further amended—
(1) by striking ‘‘and’’ at the end of paragraph 
(4); 
(2) by striking the period at the end of para-
graph (5) and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(6) in the case of a project for acquiring for use 
at a commercial service airport vehicles and ground 
support equipment owned by an airport that is not
145
described in section 47102(3) and that include low-
emission technology, if the total costs allowed for the 
project are not more than the incremental cost of 
equipping such vehicles or equipment with low-emis-
sion technology, as determined by the Secretary.’’. 
(e) LOW-EMISSION TECHNOLOGY EQUIPMENT.—Sec-
tion 47102 (as amended by section 501 of this Act) is fur-
ther amended by inserting after paragraph (10) the fol-
lowing: 
‘‘(11) ‘low-emission technology’ means technology 
for vehicles and equipment whose emission perform-
ance is the best achievable under emission standards 
established by the Environmental Protection Agency 
and that relies exclusively on alternative fuels that 
are substantially non-petroleum based, as defined by 
the Department of Energy, but not excluding hybrid 
systems or natural gas powered vehicles.’’. 
(f) CONFORMING AMENDMENTS.—The analysis of sub-
chapter I of chapter 471 is amended by adding at the end 
the following:
‘‘47138. Emission credits for air quality projects. 
‘‘47139. Airport ground support equipment emissions retrofit pilot program.’’.
146
SEC. 
522. 
COMPATIBLE 
LAND 
USE 
PLANNING 
AND 
PROJECTS BY STATE AND LOCAL GOVERN-
MENTS. 
(a) IN GENERAL.—Subchapter I of chapter 471 is fur-
ther amended by adding at the end the following: 
‘‘§ 47140. Compatible land use planning and projects 
by State and local governments 
‘‘(a) IN GENERAL.—The Secretary of Transportation 
may make grants from amounts set aside under section 
47117(e)(1)(A) to States and units of local government for 
land use compatibility plans or projects resulting from 
those plans for the purposes of making the use of land areas 
around large hub airports and medium hub airports com-
patible with aircraft operations if—
‘‘(1) the airport operator has not submitted a 
noise compatibility program to the Secretary under 
section 47504 or has not updated such program with-
in the past 10 years; and 
‘‘(2) the land use plan meets the requirements of 
this section and any project resulting from the plan 
meets such requirements. 
‘‘(b) ELIGIBILITY.—In order to receive a grant under 
this section, a State or unit of local government must—
‘‘(1) have the authority to plan and adopt land 
use control measures, including zoning, in the plan-
147
ning area in and around a large or medium hub air-
port; 
‘‘(2) provide written assurance to the Secretary 
that it will work with the affected airport to identify 
and adopt such measures; and 
‘‘(3) provide written assurance to the Secretary 
that it will achieve, to the maximum extent possible, 
compatible land uses consistent with Federal land use 
compatibility criteria under section 47502(3) and 
that those compatible land uses will be maintained. 
‘‘(c) ASSURANCES.—The Secretary shall require a 
State or unit of local government to which a grant may 
be awarded under this section for a land use plan or a 
project resulting from such a plan to provide—
‘‘(1) assurances satisfactory to the Secretary that 
the plan—
‘‘(A) is reasonably consistent with the goal 
of reducing existing noncompatible land uses and 
preventing the introduction of additional non-
compatible land uses; 
‘‘(B) addresses ways to achieve and main-
tain compatible land uses, including zoning, 
building codes, and any other projects under sec-
tion 47504(a)(2) that are within the authority of
148
the State or unit of local government to imple-
ment; 
‘‘(C) uses noise contours provided by the 
airport operator that are consistent with the air-
port operation and planning, including any 
noise abatement measures adopted by the airport 
operator as part of its own noise mitigation ef-
forts; 
‘‘(D) does not duplicate, and is not incon-
sistent with, the airport operator’s noise compat-
ibility measures for the same area; and 
‘‘(E) has received concurrence by the airport 
operator prior to adoption by the State or unit 
of local government; and 
‘‘(2) such other assurances as the Secretary de-
termines to be necessary to carry out this section. 
‘‘(d) GUIDELINES.—The Secretary shall establish 
guidelines to administer this section in accordance with the 
purposes and conditions described in this section. The Sec-
retary may require the State or unit of local government 
to which a grant may be awarded under this section to pro-
vide progress reports and other information as the Sec-
retary determines to be necessary to carry out this section. 
‘‘(e) ELIGIBLE PROJECTS.—The Secretary may ap-
prove a grant under this section to a State or unit of local
149
government for a land use compatibility project only if the 
Secretary is satisfied that the project is consistent with the 
guidelines established by the Secretary under this section, 
that the State or unit of local government has provided the 
assurances required by this section, that the Secretary has 
received evidence that the State or unit of local government 
has implemented (or has made provision to implement) 
those elements of the plan that are not eligible for Federal 
financial assistance, and that the project is not inconsistent 
with Federal standards. 
‘‘(f) SUNSET.—This section shall not be in effect after 
September 30, 2007.’’. 
(b) CONFORMING AMENDMENT.—The analysis of sub-
chapter I of chapter 471 is further amended by adding at 
the end the following:
‘‘47140. Compatible land use planning and projects by State and local govern-
ments.’’.
SEC. 523. PROHIBITION ON REQUIRING AIRPORTS TO PRO-
VIDE RENT-FREE SPACE FOR FEDERAL AVIA-
TION ADMINISTRATION. 
(a) IN GENERAL.—Subchapter I of chapter 471 is fur-
ther amended by adding at the end the following: 
‘‘§ 47141. Prohibition on rent-free space requirements 
for Federal Aviation Administration 
‘‘(a) IN GENERAL.—The Secretary of Transportation 
may not require an airport sponsor to provide to the Fed-
150
eral Aviation Administration, without compensation, space 
in a building owned by the sponsor and costs associated 
with such space for building construction, maintenance, 
utilities, and other expenses. 
‘‘(b) NEGOTIATED AGREEMENTS.—Subsection (a) does 
not prohibit—
‘‘(1) the negotiation of agreements between the 
Secretary and an airport sponsor to provide building 
construction, maintenance, utilities and expenses, or 
space in airport sponsor-owned buildings to the Fed-
eral Aviation Administration without cost or at 
below-market rates; or 
‘‘(2) the Secretary of Transportation from re-
quiring airport sponsors to provide land without cost 
to the Federal Aviation Administration for air traffic 
control facilities.’’. 
(b) CONFORMING AMENDMENT.—The analysis for sub-
chapter I of chapter 471 is further amended by adding at 
the end the following:
‘‘47141. Prohibition on rent-free space requirements for Federal Aviation Admin-
istration.’’.
SEC. 524. MIDWAY ISLAND AIRPORT. 
(a) FINDINGS.—Congress finds that the continued op-
eration of the Midway Island Airport in accordance with 
the standards of the Federal Aviation Administration ap-
plicable to commercial airports is critical to the safety of
151
commercial, military, and general aviation in the mid-Pa-
cific Ocean region. 
(b) MEMORANDUM OF UNDERSTANDING ON SALE OF 
AIRCRAFT FUEL.—The Secretary of Transportation shall 
enter into a memorandum of understanding with the Secre-
taries of Defense, Interior, and Homeland Security to facili-
tate the sale of aircraft fuel on Midway Island at a price 
that will generate sufficient revenue to improve the ability 
of the airport to operate on a self-sustaining basis in ac-
cordance with the standards of the Federal Aviation Ad-
ministration applicable to commercial airports. The memo-
randum shall also address the long-range potential of pro-
moting tourism as a means to generate revenue to operate 
the airport. 
(c) TRANSFER OF NAVIGATION AIDS AT MIDWAY IS-
LAND AIRPORT.—The Midway Island Airport may transfer, 
without consideration, to the Administrator the navigation 
aids at the airport. The Administrator shall accept the 
navigation aids and operate and maintain the navigation 
aids under criteria of the Administrator. 
(d) FUNDING TO THE SECRETARY OF INTERIOR FOR 
MIDWAY ISLAND AIRPORT.—
(1) IN GENERAL.—Chapter 481 is amended by 
adding at the end the following:
152
‘‘§ 48114. Funding to the Secretary of Interior for Mid-
way Island Airport 
‘‘The following amounts shall be available (and shall 
remain available until expended) to the Secretary of Inte-
rior, out of the Airport and Airway Trust Fund established 
under section 9502 of the Internal Revenue Code of 1986 
(26 U.S.C. 9502), for airport capital projects at the Midway 
Island Airport: 
‘‘(1) $750,000 for fiscal year 2004. 
‘‘(2) $2,500,000 for fiscal year 2005. 
‘‘(3) $1,000,000 for fiscal year 2006. 
‘‘(4) $1,000,000 for fiscal year 2007.’’. 
(2) CONFORMING AMENDMENT.—The analysis for 
chapter 481 is amended by adding at the end the fol-
lowing:
‘‘48114. Funding to the Secretary of Interior for Midway Island Airport.’’.
Union Calendar No. 72
108TH CONGRESS 
1ST SESSION 
H. R. 2115
[Report No. 108–143] 
A BILL 
To amend title 49, United States Code, to reau-
thorize programs for the Federal Aviation Ad-
ministration, and for other purposes. 
JUNE 6, 2003
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed