S. 824 (108th): Aviation Investment and Revitalization Vision Act

108th Congress, 2003–2004. Text as of May 02, 2003 (Reported by Senate Committee).

Status & Summary | PDF | Source: GPO

S 824 RS

Calendar No. 83

108th CONGRESS

1st Session

S. 824

[Report No. 108-41]

To reauthorize the Federal Aviation Administration, and for other purposes.

IN THE SENATE OF THE UNITED STATES

April 8, 2003

Mr. MCCAIN (for himself, Mr. HOLLINGS, Mr. LOTT, and Mr. ROCKEFELLER) introduced the following bill; which was read twice and referred to the Committee on Commerce, Science, and Transportation

May 2, 2003

Reported under authority of the order of the Senate of May 1, 2003, by Mr. MCCAIN, with an amendment

[Strike all after the enacting clause and insert the part in italic]


A BILL

To reauthorize the Federal Aviation Administration, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

[Struck out->] SECTION 1. SHORT TITLE; AMENDMENT OF TITLE 49. [<-Struck out]

    [Struck out->] (a) SHORT TITLE- This Act may be cited as the ‘Aviation Investment and Revitalization Vision Act’. [<-Struck out]

    [Struck out->] (b) Amendment of Title 49- Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or a repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of title 49, United States Code. [<-Struck out]

[Struck out->] SEC. 2. TABLE OF CONTENTS. [<-Struck out]

    [Struck out->] The table of contents for this Act is as follows: [<-Struck out]

[Struck out->]

Sec. 1. Short title; amendment of title 49.

[<-Struck out]

[Struck out->]

Sec. 2. Table of contents.

[<-Struck out]

[Struck out->] TITLE I--REAUTHORIZATIONS; FAA MANAGEMENT [<-Struck out]

[Struck out->]

Sec. 101. Airport improvement program.

[<-Struck out]

[Struck out->]

Sec. 102. Airway facilities improvement program.

[<-Struck out]

[Struck out->]

Sec. 103. FAA operations.

[<-Struck out]

[Struck out->]

Sec. 104. Research, engineering, and development.

[<-Struck out]

[Struck out->]

Sec. 105. Other programs.

[<-Struck out]

[Struck out->]

Sec. 106. Reorganization of the Air Traffic Services Subcommittee.

[<-Struck out]

[Struck out->]

Sec. 107. Clarification of responsibilities of chief operating officer.

[<-Struck out]

[Struck out->] TITLE II--AIRPORT DEVELOPMENT [<-Struck out]

[Struck out->]

Sec. 201. National capacity projects.

[<-Struck out]

[Struck out->]

Sec. 202. Categorical exclusions.

[<-Struck out]

[Struck out->]

Sec. 203. Alternatives analysis.

[<-Struck out]

[Struck out->]

Sec. 204. Increase in apportionment for, and flexibility of, noise compatibility planning programs.

[<-Struck out]

[Struck out->]

Sec. 205. Secretary of Transportation to identify airport congestion-relief projects and forecast airport operations annually.

[<-Struck out]

[Struck out->]

Sec. 206. Design-build contracting.

[<-Struck out]

[Struck out->]

Sec. 207. Special rule for airport in Illinois.

[<-Struck out]

[Struck out->]

Sec. 208. Elimination of duplicative requirements.

[<-Struck out]

[Struck out->]

Sec. 209. Streamlining the passenger facility fee program.

[<-Struck out]

[Struck out->]

Sec. 210. Quarterly status reports.

[<-Struck out]

[Struck out->]

Sec. 211. Noise disclosure requirements.

[<-Struck out]

[Struck out->]

Sec. 212. Prohibition on requiring airports to provide rent-free space for FAA or TSA.

[<-Struck out]

[Struck out->]

Sec. 213. Special rules for fiscal year 2004.

[<-Struck out]

[Struck out->] TITLE III--AIRLINE SERVICE DEVELOPMENT [<-Struck out]

[Struck out->]

Sec. 301. Delay reduction meetings.

[<-Struck out]

[Struck out->]

Sec. 302. Reauthorization of essential air service program.

[<-Struck out]

[Struck out->]

Sec. 303. Small community air service development pilot program.

[<-Struck out]

[Struck out->]

Sec. 304. DOT study of competition and access problems at large and medium hub airports.

[<-Struck out]

[Struck out->]

Sec. 305. Competition disclosure requirement for large and medium hub airports.

[<-Struck out]

[Struck out->] Title IV--Aviation Security [<-Struck out]

[Struck out->]

Sec. 401. Study of effectiveness of transportation security system.

[<-Struck out]

[Struck out->]

Sec. 402. Aviation security capital fund.

[<-Struck out]

[Struck out->]

Sec. 403. Technical amendments related to security-related airport development.

[<-Struck out]

[Struck out->] Title V--Miscellaneous [<-Struck out]

[Struck out->]

Sec. 501. Extension of war risk insurance authority.

[<-Struck out]

[Struck out->]

Sec. 502. Cost-sharing of air traffic modernization projects.

[<-Struck out]

[Struck out->]

Sec. 503. Counterfeit or fraudulently represented parts violations.

[<-Struck out]

[Struck out->]

Sec. 504. Clarifications to procurement authority.

[<-Struck out]

[Struck out->]

TITLE I--REAUTHORIZATIONS; FAA MANAGEMENT

[<-Struck out]

[Struck out->] SEC. 101. AIRPORT IMPROVEMENT PROGRAM. [<-Struck out]

    [Struck out->] (a) AUTHORIZATION OF APPROPRIATIONS- Section 48103 is amended-- [<-Struck out]

      [Struck out->] (1) by inserting ‘(a) IN GENERAL- ’ before ‘The’; [<-Struck out]

      [Struck out->] (2) by striking ‘and’ in paragraph (4); [<-Struck out]

      [Struck out->] (3) by striking ‘2003.’ in paragraph (5) and inserting ‘2003;’; [<-Struck out]

      [Struck out->] (4) by inserting after paragraph (5) the following: [<-Struck out]

      [Struck out->]

      ‘(6) $3,400,000,000 for fiscal year 2004; [<-Struck out]

      [Struck out->]

      ‘(7) $3,500,000,000 for fiscal year 2005; and [<-Struck out]

      [Struck out->]

      ‘(8) $3,600,000,000 for fiscal year 2006.’; and [<-Struck out]

      [Struck out->] (5) by adding at the end the following: [<-Struck out]

    [Struck out->]

    ‘(b) ADMINISTRATIVE EXPENSES- From the amounts authorized by paragraphs (6) through (8) of subsection (a), there shall be available for administrative expenses relating to the airport improvement program, passenger facility fee approval and oversight, national airport system planning, airport standards development and enforcement, airport certification, airport-related environmental activities (including legal service), to remain available until expended-- [<-Struck out]

      [Struck out->]

      ‘(1) for fiscal year 2004, $69,737,000; [<-Struck out]

      [Struck out->]

      ‘(2) for fiscal year 2005, $71,816,000; and [<-Struck out]

      [Struck out->]

      ‘(3) for fiscal year 2006, $74,048,000.’. [<-Struck out]

    [Struck out->] (b) OBLIGATIONAL AUTHORITY- Section 47104(c) is amended by striking ‘2003,’ and inserting ‘2006,’. [<-Struck out]

[Struck out->] SEC. 102. AIRWAY FACILITIES IMPROVEMENT PROGRAM. [<-Struck out]

    [Struck out->] Section 48101(a) is amended by adding at the end the following: [<-Struck out]

      [Struck out->]

      ‘(6) $2,916,000,000 for fiscal year 2004. [<-Struck out]

      [Struck out->]

      ‘(7) $2,971,000,000 for fiscal year 2005. [<-Struck out]

      [Struck out->]

      ‘(8) $3,030,000,000 for fiscal year 2006.’. [<-Struck out]

[Struck out->] SEC. 103. FAA OPERATIONS. [<-Struck out]

    [Struck out->] Section 106(k)(1) is amended-- [<-Struck out]

      [Struck out->] (1) by striking ‘and’ in subparagraph (C); [<-Struck out]

      [Struck out->] (2) by striking ‘2003.’ in subparagraph (D) and inserting ‘2003;’; and [<-Struck out]

      [Struck out->] (3) by adding at the end the following: [<-Struck out]

        [Struck out->]

        ‘(E) $7,591,000,000 for fiscal year 2004; [<-Struck out]

        [Struck out->]

        ‘(F) $7,732,000,000 for fiscal year 2005; and [<-Struck out]

        [Struck out->]

        ‘(G) $7,889,000,000 for fiscal year 2006.’. [<-Struck out]

[Struck out->] SEC. 104. RESEARCH, ENGINEERING AND DEVELOPMENT. [<-Struck out]

    [Struck out->] Section 48102 is amended-- [<-Struck out]

      [Struck out->] (1) by striking paragraphs (1) through (8) of subsection (a) and inserting: [<-Struck out]

      [Struck out->]

      ‘(1) For fiscal year 2004, $289,000,000. [<-Struck out]

      [Struck out->]

      ‘(2) For fiscal year 2005, $204,000,000. [<-Struck out]

      [Struck out->]

      ‘(3) For fiscal year 2006, $317,000,000.’; and [<-Struck out]

      [Struck out->] (2) by redesignating subsection (h) as subsection (g). [<-Struck out]

[Struck out->] SEC. 105. OTHER PROGRAMS. [<-Struck out]

    [Struck out->] Section 106 of the Wendell H. Ford Aviation Investment and Reform Act for the 21st Century is amended-- [<-Struck out]

      [Struck out->] (1) by striking ‘2003’ in subsection (a)(1)(A) and subsection (c)(2) and inserting ‘2006’; and [<-Struck out]

      [Struck out->] (2) by striking ‘2003,’ in subsection (a)(2) and inserting ‘2006,’. [<-Struck out]

[Struck out->] SEC. 106. REORGANIZATION OF THE AIR TRAFFIC SERVICES SUBCOMMITTEE. [<-Struck out]

    [Struck out->] (a) IN GENERAL- Section 106 is amended-- [<-Struck out]

      [Struck out->] (1) by redesignating subsections (q) and (r) as subsections (r) and (s), respectively; and [<-Struck out]

      [Struck out->] (2) by inserting after subsection (p) the following: [<-Struck out]

    [Struck out->]

    ‘(q) AIR TRAFFIC MANAGEMENT COMMITTEE- [<-Struck out]

      [Struck out->]

      ‘(1) ESTABLISHMENT- The Secretary of Transportation shall establish an advisory committee which shall be known as the Air Traffic Services Committee (in this subsection referred to as the ‘Committee’). [<-Struck out]

      [Struck out->]

      ‘(2) Membership- [<-Struck out]

        [Struck out->]

        ‘(A) COMPOSITION AND APPOINTMENT- The Committee shall be composed of-- [<-Struck out]

          [Struck out->]

          ‘(i) the Administrator of the Federal Aviation Administration, who shall serve as chair; and [<-Struck out]

          [Struck out->]

          ‘(ii) 4 members, to be appointed by the Secretary, after consultation with the Committee on Transportation and Infrastructure of the House of Representatives, and the Committee on Commerce, Science, and Transportation of the Senate. [<-Struck out]

        [Struck out->]

        ‘(B) NO FEDERAL OFFICER OR EMPLOYEE- No member appointed under subparagraph (A)(ii) may serve as an officer or employee of the United States Government while serving as a member of the Committee. [<-Struck out]

        [Struck out->]

        ‘(C) ELIGIBILITY- Members appointed under subparagraph (A)(ii) shall-- [<-Struck out]

          [Struck out->]

          ‘(i) have a fiduciary responsibility to represent the public interest; [<-Struck out]

          [Struck out->]

          ‘(ii) be citizens of the United States; and [<-Struck out]

          [Struck out->]

          ‘(iii) be appointed without regard to political affiliation and solely on the basis of their professional experience and expertise in one or more of the following areas: [<-Struck out]

            [Struck out->]

            ‘(I) Management of large service organizations. [<-Struck out]

            [Struck out->]

            ‘(II) Customer service. [<-Struck out]

            [Struck out->]

            ‘(III) Management of large procurements. [<-Struck out]

            [Struck out->]

            ‘(IV) Information and communications technology. [<-Struck out]

            [Struck out->]

            ‘(V) Organizational development. [<-Struck out]

            [Struck out->]

            ‘(VI) Labor relations. [<-Struck out]

          [Struck out->] At least one of such members should have a background in managing large organizations successfully. In the aggregate, such members should collectively bring to bear expertise in all of the areas described in subclauses (I) through (VI). [<-Struck out]

        [Struck out->]

        ‘(D) PROHIBITIONS ON MEMBERS OF COMMITTEE- No member appointed under subparagraph (A)(ii) may-- [<-Struck out]

          [Struck out->]

          ‘(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 section 208 of title 18; [<-Struck out]

          [Struck out->]

          ‘(ii) engage in another business related to aviation or aeronautics; or [<-Struck out]

          [Struck out->]

          ‘(iii) be a member of any organization that engages, as a substantial part of its activities, in activities to influence aviation-related legislation. [<-Struck out]

        [Struck out->]

        ‘(E) Claims against members- [<-Struck out]

          [Struck out->]

          ‘(i) IN GENERAL- A member appointed under subparagraph (A)(ii) shall have no personal liability under Federal law with respect to any claim arising out of or resulting from an act or omission by such member within the scope of service as a member of the Air Traffic Services Committee. [<-Struck out]

          [Struck out->]

          ‘(ii) EFFECT ON OTHER LAW- This subparagraph shall not be construed-- [<-Struck out]

            [Struck out->]

            ‘(I) to affect any other immunity or protection that may be available to a member of the Committee under applicable law with respect to such transactions; [<-Struck out]

            [Struck out->]

            ‘(II) to affect any other right or remedy against the United States under applicable law; or [<-Struck out]

            [Struck out->]

            ‘(III) to limit or alter in any way the immunities that are available under applicable law for Federal officers and employees. [<-Struck out]

        [Struck out->]

        ‘(F) Ethical considerations- [<-Struck out]

          [Struck out->]

          ‘(i) FINANCIAL DISCLOSURE- During the entire period that an individual appointed under subparagraph (A)(ii) is a member of the Committee, such individual shall be treated as serving as an officer or employee referred to in section 101(f) of the Ethics in Government Act of 1978 for purposes of title I of such Act; except that section 101(d) of such Act shall apply without regard to the number of days of service in the position. [<-Struck out]

          [Struck out->]

          ‘(ii) RESTRICTIONS ON POST-EMPLOYMENT- For purposes of section 207(c) of title 18, an individual appointed under subparagraph (A)(ii) shall be treated as an employee referred to in section 207(c)(2)(A)(i) of such title during the entire period the individual is a member of the Committee; except that subsections (c)(2)(B) and (f) of section 207 of such title shall not apply. [<-Struck out]

        [Struck out->]

        ‘(G) TERMS FOR AIR TRAFFIC SERVICES COMMITTEE MEMBERS- A member appointed under subparagraph (A)(ii) shall be appointed for a term of 5 years. [<-Struck out]

        [Struck out->]

        ‘(H) REAPPOINTMENT- An individual may not be appointed under subparagraph (A)(ii) to more than two 5-year terms. [<-Struck out]

        [Struck out->]

        ‘(I) VACANCY- Any vacancy on the Committee shall be filled in the same manner as the original appointment. Any member appointed to fill a vacancy occurring before the expiration of the term for which the member’s predecessor was appointed shall be appointed for the remainder of that term. [<-Struck out]

        [Struck out->]

        ‘(J) CONTINUATION IN OFFICE- A member whose term expires shall continue to serve until the date on which the member’s successor takes office. [<-Struck out]

        [Struck out->]

        ‘(K) REMOVAL- Any member appointed under subparagraph (A)(ii) may be removed for cause by the Secretary. [<-Struck out]

      [Struck out->]

      ‘(3) General responsibilities- [<-Struck out]

        [Struck out->]

        ‘(A) OVERSIGHT- The Committee shall oversee the administration, management, conduct, direction, and supervision of the air traffic control system. [<-Struck out]

        [Struck out->]

        ‘(B) CONFIDENTIALITY- The Committee shall ensure that appropriate confidentiality is maintained in the exercise of its duties. [<-Struck out]

      [Struck out->]

      ‘(4) SPECIFIC RESPONSIBILITIES- The Committee shall have the following specific responsibilities: [<-Struck out]

        [Struck out->]

        ‘(A) STRATEGIC PLANS- To review, approve, and monitor the strategic plan for the air traffic control system, including the establishment of-- [<-Struck out]

          [Struck out->]

          ‘(i) a mission and objectives; [<-Struck out]

          [Struck out->]

          ‘(ii) standards of performance relative to such mission and objectives, including safety, efficiency, and productivity; and [<-Struck out]

          [Struck out->]

          ‘(iii) annual and long-range strategic plans. [<-Struck out]

        [Struck out->]

        ‘(B) MODERNIZATION AND IMPROVEMENT- To review and approve-- [<-Struck out]

          [Struck out->]

          ‘(i) methods to accelerate air traffic control modernization and improvements in aviation safety related to air traffic control; and [<-Struck out]

          [Struck out->]

          ‘(ii) procurements of air traffic control equipment in excess of $100,000,000. [<-Struck out]

        [Struck out->]

        ‘(C) OPERATIONAL PLANS- To review the operational functions of the air traffic control system, including-- [<-Struck out]

          [Struck out->]

          ‘(i) plans for modernization of the air traffic control system; [<-Struck out]

          [Struck out->]

          ‘(ii) plans for increasing productivity or implementing cost-saving measures; and [<-Struck out]

          [Struck out->]

          ‘(iii) plans for training and education. [<-Struck out]

        [Struck out->]

        ‘(D) MANAGEMENT- To-- [<-Struck out]

          [Struck out->]

          ‘(i) review and approve the Administrator’s appointment of a Chief Operating Officer under section 106(s); [<-Struck out]

          [Struck out->]

          ‘(ii) review the Administrator’s selection, evaluation, and compensation of senior executives of the Administration who have program management responsibility over significant functions of the air traffic control system; [<-Struck out]

          [Struck out->]

          ‘(iii) review and approve the Administrator’s plans for any major reorganization of the Administration that would impact on the management of the air traffic control system; [<-Struck out]

          [Struck out->]

          ‘(iv) review and approve the Administrator’s cost accounting and financial management structure and technologies to help ensure efficient and cost-effective air traffic control operation; and [<-Struck out]

          [Struck out->]

          ‘(v) review the performance and compensation of managers responsible for major acquisition projects, including the ability of the managers to meet schedule and budget targets. [<-Struck out]

        [Struck out->]

        ‘(E) BUDGET- To-- [<-Struck out]

          [Struck out->]

          ‘(i) review and approve the budget request of the Administration related to the air traffic control system prepared by the Administrator; [<-Struck out]

          [Struck out->]

          ‘(ii) submit such budget request to the Secretary; and [<-Struck out]

          [Struck out->]

          ‘(iii) ensure that the budget request supports the annual and long-range strategic plans. [<-Struck out]

      [Struck out->]

      ‘(5) CONGRESSIONAL REVIEW OF PRE-OMB BUDGET REQUEST- The Secretary shall submit the budget request referred to in paragraph (4)(E)(ii) for any fiscal year to the President who shall transmit such request, without revision, to the Committees on Transportation and Infrastructure and Appropriations of the House of Representatives and the Committees on Commerce, Science, and Transportation and Appropriations of the Senate, together with the President’s annual budget request for the Federal Aviation Administration for such fiscal year. [<-Struck out]

      [Struck out->]

      ‘(6) Committee personnel matters- [<-Struck out]

        [Struck out->]

        ‘(A) COMPENSATION OF MEMBERS- Each member of the Committee, other than the chair and vice chair, shall be compensated at a rate of $25,000 per year. [<-Struck out]

        [Struck out->]

        ‘(B) STAFF- The chairperson of the Committee may appoint and terminate any personnel that may be necessary to enable the Committee to perform its duties. [<-Struck out]

        [Struck out->]

        ‘(C) PROCUREMENT OF TEMPORARY AND INTERMITTENT SERVICES- The chairperson of the Committee may procure temporary and intermittent services under section 3109(b) of title 5, United States Code. [<-Struck out]

      [Struck out->]

      ‘(7) Administrative matters- [<-Struck out]

        [Struck out->]

        ‘(A) POWERS OF CHAIR- Except as otherwise provided by a majority vote of the Committee, the powers of the chairperson shall include-- [<-Struck out]

          [Struck out->]

          ‘(i) establishing subcommittees; [<-Struck out]

          [Struck out->]

          ‘(ii) setting meeting places and times; [<-Struck out]

          [Struck out->]

          ‘(iii) establishing meeting agendas; and [<-Struck out]

          [Struck out->]

          ‘(iv) developing rules for the conduct of business. [<-Struck out]

        [Struck out->]

        ‘(B) MEETINGS- The Committee shall meet at least quarterly and at such other times as the chairperson determines appropriate. [<-Struck out]

        [Struck out->]

        ‘(C) QUORUM- Three members of the Committee shall constitute a quorum. A majority of members present and voting shall be required for the Committee to take action. [<-Struck out]

        [Struck out->]

        ‘(D) APPLICATION OF SUBSECTION (p) PROVISIONS- The following provisions of subsection (p) apply to the Committee to the same extent as they apply to the Management Advisory Council: [<-Struck out]

          [Struck out->]

          ‘(i) Paragraph (4)(C) (relating to access to documents and staff). [<-Struck out]

          [Struck out->]

          ‘(ii) Paragraph (5) (relating to nonapplication of Federal Advisory Committee Act). [<-Struck out]

          [Struck out->]

          ‘(iii) Paragraph (6)(G) (relating to travel and per diem). [<-Struck out]

          [Struck out->]

          ‘(iv) Paragraph (6)(H) (relating to detail of personnel). [<-Struck out]

      [Struck out->]

      ‘(8) Reports- [<-Struck out]

        [Struck out->]

        ‘(A) ANNUAL- The Committee shall each year report with respect to the conduct of its responsibilities under this title to the Administrator, the Management Advisory Council, the Committee on Transportation and Infrastructure of the House of Representatives, and the Committee on Commerce, Science, and Transportation of the Senate. [<-Struck out]

        [Struck out->]

        ‘(B) COMPTROLLER GENERAL’S REPORT- Not later than April 30, 2003, the Comptroller General of the United States 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 report on the success of the Committee in improving the performance of the air traffic control system.’. [<-Struck out]

    [Struck out->] (b) CONFORMING AMENDMENTS- [<-Struck out]

      [Struck out->] (1) Subsection (p) of section 106 is amended-- [<-Struck out]

        [Struck out->] (A) by striking ‘18’ in paragraph (2) and inserting ‘13’; [<-Struck out]

        [Struck out->] (B) by inserting ‘and’ after the semicolon in subparagraph (C) of paragraph (2); [<-Struck out]

        [Struck out->] (C) by striking ‘Transportation; and’ in subparagraph (D) of paragraph (2) and inserting ‘Transportation.’; [<-Struck out]

        [Struck out->] (D) by striking subparagraph (E) of paragraph (2); [<-Struck out]

        [Struck out->] (E) by striking paragraph (3) and inserting the following: [<-Struck out]

      [Struck out->]

      ‘(3) NO FEDERAL OFFICER OR EMPLOYEE- No member appointed under paragraph (2)(C) may serve as an officer or employee of the United States Government while serving as a member of the Council.’; [<-Struck out]

        [Struck out->] (F) by striking subparagraphs (C), (D), (H), and (I) of paragraph (6) and redesignating subparagraphs (E), (F), (G), (J), (K), and (L) as subparagraphs (C), (D), (E), (F), (G), and (H), respectively; and [<-Struck out]

        [Struck out->] (G) by striking paragraphs (7) and (8). [<-Struck out]

      [Struck out->] (2) Section 106(s) (as redesignated by subsection (a) of this section) is amended-- [<-Struck out]

        [Struck out->] (A) by striking ‘Air Traffic Services Subcommittee of the Aviation Management Advisory Council.’ and inserting ‘Air Traffic Services Committee.’ in paragraphs (1)(A) and (2)(A); and [<-Struck out]

        [Struck out->] (B) by striking ‘Air Traffic Services Subcommittee of the Aviation Management Advisory Council,’ and inserting ‘Air Traffic Services Committee,’ in paragraph (3). [<-Struck out]

      [Struck out->] (3) Section 106 is amended by adding at the end the following: [<-Struck out]

    [Struck out->]

    ‘(t) AIR TRAFFIC CONTROL SYSTEM DEFINED- In this section, the term ‘air traffic control system’ has the meaning such term has under section 40102(a).’. [<-Struck out]

    [Struck out->] (c) TRANSITION FROM AIR TRAFFIC SERVICE SUBCOMMITTEE TO AIR TRAFFIC SERVICE COMMITTEE- [<-Struck out]

      [Struck out->] (1) TERMINATION OF MANAGEMENT ADVISORY COUNCIL MEMBERSHIP- Effective on the day after the date of enactment of this Act, any member of the Management Advisory Council appointed under section 106(p)(2)(E) of title 49, United States Code, (as such section was in effect on the day before such date of enactment) who is a member of the Council on such date of enactment shall cease to be a member of the Council. [<-Struck out]

      [Struck out->] (2) COMMENCEMENT OF MEMBERSHIP ON AIR TRAFFIC SERVICES COMMITTEE- Effective on the day after the date of enactment of this Act, any member of the Management Advisory Council whose membership is terminated by paragraph (1) shall become a member of the Air Traffic Services Committee as provided by section 106(q)(2)(G) of title 49, United States Code, to serve for the remainder of the term to which that member was appointed to the Council. [<-Struck out]

[Struck out->] SEC. 107. CLARIFICATION OF RESPONSIBILITIES OF CHIEF OPERATING OFFICER. [<-Struck out]

    [Struck out->] Section 106(s) (as redesignated by section 106(a)(1) of this Act) is amended-- [<-Struck out]

      [Struck out->] (1) by striking ‘Transportation and Congress’ in paragraph (4) and inserting ‘Transportation, the Committee on Transportation and Infrastructure of the House of Representatives, and the Committee on Commerce, Science, and Transportation of the Senate,’; [<-Struck out]

      [Struck out->] (2) by striking ‘develop a strategic plan of the Administration for the air traffic control system, including the establishment of--’ in paragraph (5)(A) and inserting ‘implement the strategic plan of the Administration for the air traffic control system in order to further--’; [<-Struck out]

      [Struck out->] (3) by striking ‘To review the operational functions of the Administration,’ in paragraph (5)(B) and inserting ‘To oversee the day-to-day operational functions of the Administration for air traffic control,’; [<-Struck out]

      [Struck out->] (4) by striking ‘system prepared by the Administrator;’ in paragraph (5)(C)(i) and inserting ‘system;’; [<-Struck out]

      [Struck out->] (5) by striking ‘Administrator and the Secretary of Transportation;’ in paragraph (5)(C)(ii) and inserting ‘Administrator;’; and [<-Struck out]

      [Struck out->] (6) by striking paragraph (5)(C)(iii) and inserting the following: [<-Struck out]

          [Struck out->]

          ‘(iii) ensure that the budget request supports the agency’s annual and long-range strategic plans for air traffic control services.’. [<-Struck out]

[Struck out->]

TITLE II--AIRPORT DEVELOPMENT

[<-Struck out]

[Struck out->] SEC. 201. NATIONAL CAPACITY PROJECTS. [<-Struck out]

    [Struck out->] (a) IN GENERAL- Part B of subtitle VII is amended by adding at the end the following: [<-Struck out]

[Struck out->]
‘CHAPTER 477. NATIONAL CAPACITY PROJECTS [<-Struck out]

      [Struck out->]

      ‘47701. Capacity enhancement [<-Struck out]

      [Struck out->]

      ‘47702. Designation of national capacity projects [<-Struck out]

      [Struck out->]

      ‘47703. Expedited coordinated environmental review process; project coordinators and environment impact teams. [<-Struck out]

      [Struck out->]

      ‘47704. Compatible land use initiative for national capacity projects [<-Struck out]

      [Struck out->]

      ‘47705. Air traffic procedures at national capacity projects [<-Struck out]

      [Struck out->]

      ‘47706. Pilot program for environmental review at national capacity projects [<-Struck out]

      [Struck out->]

      ‘47707. Definitions [<-Struck out]

[Struck out->]
‘Sec. 47701. Capacity enhancement [<-Struck out]

    [Struck out->]

    ‘(a) IN GENERAL- Within 30 days after the date of enactment of the Aviation Investment and Revitalization Vision Act, the Secretary of Transportation shall identify those airports among the 31 airports covered by the Federal Aviation Administration’s Airport Capacity Benchmark Report 2001 with delays that significantly affect the national air transportation system. [<-Struck out]

    [Struck out->]

    ‘(b) Task Force; Capacity Enhancement Study- [<-Struck out]

      [Struck out->]

      ‘(1) IN GENERAL- The Secretary shall direct any airport identified by the Secretary under subsection (a) that is not engaged in a runway expansion process and has not initiated a capacity enhancement study (or similar capacity assessment) since 1996-- [<-Struck out]

        [Struck out->]

        ‘(A) to establish a delay reduction task force to study means of increasing capacity at the airport, including air traffic, airline scheduling, and airfield expansion alternatives; or [<-Struck out]

        [Struck out->]

        ‘(B) to conduct a capacity enhancement study. [<-Struck out]

      [Struck out->]

      ‘(2) SCOPE- The scope of the study shall be determined by the airport and the Federal Aviation Administration, and where appropriate shall consider regional capacity solutions. [<-Struck out]

      [Struck out->]

      ‘(3) Recommendations submitted to secretary- [<-Struck out]

        [Struck out->]

        ‘(A) TASK FORCE- A task force established under this subsection shall submit a report containing its findings and conclusions, together with any recommendations for capacity enhancement at the airport, to the Secretary within 9 months after the task force is established. [<-Struck out]

        [Struck out->]

        ‘(B) CES- A capacity enhancement study conducted under this subsection shall be submitted, together with its findings and conclusions, to the Secretary as soon as the study is completed. [<-Struck out]

    [Struck out->]

    ‘(c) RUNWAY EXPANSION AND RECONFIGURATION- If the report or study submitted under subsection (b)(3) includes a recommendation for the construction or reconfiguration of runways at the airport, then the Secretary and the airport shall complete the planning and environmental review process within 5 years after report or study is submitted to the Secretary. The Secretary may extend the 5-year deadline under this subsection for up to 1 year if the Secretary determines that such an extension is necessary and in the public interest. The Secretary shall notify the Senate Committee on Commerce, Science, and Transportation, and to the House of Representatives Committee on Transportation and Infrastructure of any such extension. [<-Struck out]

    [Struck out->]

    ‘(d) Airports That Decline To Undertake Expansion Projects- [<-Struck out]

      [Struck out->]

      ‘(1) IN GENERAL- If an airport at which the construction or reconfiguration of runways is recommended does not take action to initiate a planning and environmental assessment process for the construction or reconfiguration of those runways within 30 days after the date on which the report or study is submitted to the Secretary, then-- [<-Struck out]

        [Struck out->]

        ‘(A) the airport shall be ineligible for planning and other expansion funds under subchapter I of chapter 471, notwithstanding any provision of that subchapter to the contrary; [<-Struck out]

        [Struck out->]

        ‘(B) no passenger facility fee may be approved at that airport during the 5-year period beginning 30 days after the date on which the report or study is submitted to the Secretary, for-- [<-Struck out]

          [Struck out->]

          ‘(i) projects that, but for subparagraph (A), could have been funded under chapter 471; or [<-Struck out]

          [Struck out->]

          ‘(ii) any project other than on-airport airfield-side capacity or safety-related projects. [<-Struck out]

      [Struck out->]

      ‘(2) SAFETY-RELATED AND ENVIRONMENTAL PROJECTS EXCEPTED- Paragraph (1) does not apply to the use of funds for safety-related, security, or environment projects. [<-Struck out]

    [Struck out->]

    ‘(e) AIRPORTS THAT TAKE ACTION- The Secretary shall take all actions possible to expedite funding and provide options for funding to any airport undertaking runway construction or reconfiguration projects in response to recommendations by its task force. [<-Struck out]

[Struck out->]
‘Sec. 47702. Designation of national capacity projects [<-Struck out]

    [Struck out->]

    ‘(a) IN GENERAL- In response to a petition from an airport sponsor, or in the case of an airport on the list of airports covered by the Federal Aviation Administration’s Airport Capacity Benchmarks study, the Secretary of Transportation may designate an airport development project as a national capacity project if the Secretary determines that the project to be designated will significantly enhance the capacity of the national air transportation system. [<-Struck out]

    [Struck out->]

    ‘(b) Designation To Remain in Effect for 5 Years- The designation of a project as a national capacity project under paragraph (1) shall remain in effect for 5 years. The Secretary may extend the 5-year period for up to 2 additional years upon request if the Secretary finds that substantial progress is being made toward completion of the project. [<-Struck out]

[Struck out->]
‘Sec. 47703. Expedited coordinated environmental review process; project coordinators and environment impact teams. [<-Struck out]

    [Struck out->]

    ‘(a) IN GENERAL- The Secretary of Transportation shall implement an expedited coordinated environmental review process for national capacity projects that-- [<-Struck out]

      [Struck out->]

      ‘(1) provides for better coordination among the Federal, regional, State, and local agencies concerned with the preparation of environmental impact statements or environmental assessments under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.); [<-Struck out]

      [Struck out->]

      ‘(2) provides for an expedited and coordinated process in the conduct of environmental reviews that ensures that, where appropriate, the reviews are done concurrently and not consecutively; and [<-Struck out]

      [Struck out->]

      ‘(3) provides for a date certain for completing all environmental reviews. [<-Struck out]

    [Struck out->]

    ‘(b) HIGH PRIORITY FOR AIRPORT ENVIRONMENTAL REVIEWS- Each department and agency of the United States Government with jurisdiction over environmental reviews shall accord any such review involving a national capacity project the highest possible priority and conduct the review expeditiously. If the Secretary finds that any such department or agency is not complying with the requirements of this subsection, the Secretary shall notify the Senate Committee on Commerce, Science, and Transportation, and to the House of Representatives Committee on Transportation and Infrastructure immediately. [<-Struck out]

    [Struck out->]

    ‘(c) Project Coordinators; EIS Teams- [<-Struck out]

      [Struck out->]

      ‘(1) DESIGNATION- For each project designated by the Secretary as a national capacity project under subsection (a) for which an environmental impact statement or environmental assessment must be filed, the Secretary shall-- [<-Struck out]

        [Struck out->]

        ‘(A) designate a project coordinator within the Department of Transportation; and [<-Struck out]

        [Struck out->]

        ‘(B) establish an environmental impact team within the Department. [<-Struck out]

      [Struck out->]

      ‘(2) FUNCTION- The project coordinator and the environmental impact team shall-- [<-Struck out]

        [Struck out->]

        ‘(A) coordinate the activities of all Federal, State, and local agencies involved in the project; [<-Struck out]

        [Struck out->]

        ‘(B) to the extent possible, working with Federal, State and local officials, reduce and eliminate duplicative and overlapping Federal, State, and local permit requirements; [<-Struck out]

        [Struck out->]

        ‘(C) to the extent possible, eliminate duplicate Federal, State, and local environmental review procedures; and [<-Struck out]

        [Struck out->]

        ‘(D) provide direction for compliance with all applicable Federal, State, and local environmental requirements for the project. [<-Struck out]

[Struck out->]
‘Sec. 47704. Compatible land use initiative for national capacity projects [<-Struck out]

    [Struck out->]

    ‘(a) IN GENERAL- The Secretary of Transportation may make grants under chapter 471 to States and units of local government for land use compatibility plans directly related to national capacity projects for the purposes of making the use of land areas around the airport compatible with aircraft operations if the land use plan or project meets the requirements of this section. [<-Struck out]

    [Struck out->]

    ‘(b) CONDITIONS- A land use plan or project meets the requirements of this section if it-- [<-Struck out]

      [Struck out->]

      ‘(1) is sponsored by the public agency that has the authority to plan and adopt land use control measures, including zoning, in the planning area in and around the airport and that agency provides written assurances to the Secretary that it will work with the affected airport to identify and adopt such measures; [<-Struck out]

      [Struck out->]

      ‘(2) does not duplicate, and is not inconsistent with, an airport noise compatibility program prepared by an airport owner or operator under chapter 475 or with other planning carried out by the airport. [<-Struck out]

      [Struck out->]

      ‘(3) is subject to an agreement between the public agency sponsor and the airport owner or operator that the development of the land use compatibility plan will be done cooperatively; [<-Struck out]

      [Struck out->]

      ‘(4) is consistent with the airport operation and planning, including the use of any noise exposure contours on which the land use compatibility planning or project is based; and [<-Struck out]

      [Struck out->]

      ‘(5) has been approved jointly by the airport owner or operator and the public agency sponsor. [<-Struck out]

    [Struck out->]

    ‘(c) ASSURANCES FROM SPONSORS- The Secretary may require the airport sponsor, public agency, or other entity to which a grant may be awarded under this section to provide such additional assurances, progress reports, and other information as the Secretary determines to be necessary to carry out this section. [<-Struck out]

[Struck out->]
‘Sec. 47705. Air traffic procedures at national capacity projects [<-Struck out]

    [Struck out->]

    ‘(a) IN GENERAL- The Secretary of Transportation may consider prescribing flight procedures to avoid or minimize potentially significant adverse noise impacts of the project during the environmental planning process for a national capacity project that involves the construction of new runways or the reconfiguration of existing runways. If the Secretary determines that noise mitigation flight procedures are consistent with safe and efficient use of the navigable airspace, then, at the request of the airport sponsor, the Administrator may, in a manner consistent with applicable Federal law, commit to prescribing such procedures in any record of decision approving the project. [<-Struck out]

    [Struck out->]

    ‘(b) MODIFICATION- Notwithstanding any commitment by the Secretary under subsection (a), the Secretary may initiate changes to such procedures if necessary to maintain safety and efficiency in light of new information or changed circumstances. [<-Struck out]

[Struck out->]
‘Sec. 47706. Pilot program for environmental review at national capacity projects [<-Struck out]

    [Struck out->]

    ‘(a) IN GENERAL- The Secretary of Transportation shall initiate a 5-year pilot program funded by airport sponsors-- [<-Struck out]

      [Struck out->]

      ‘(1) to hire additional fulltime-equivalent environmental specialists and attorneys, or [<-Struck out]

      [Struck out->]

      ‘(2) to obtain the services of such specialists and attorneys from outside the United States Government, to assist in the provision of an appropriate nationwide level of staffing for planning and environmental review of runway development projects for national capacity projects at the Federal Aviation Administration. [<-Struck out]

    [Struck out->]

    ‘(b) ELIGIBLE PARTICIPANTS- Participation in the pilot program shall be available, on a voluntary basis, to airports with an annual passenger enplanement of not less than 3 million passengers. The Secretary shall specify the minimum contribution necessary to qualify for participation in the pilot program, which shall be not less than the amount necessary to compensate the Department of Transportation for the expense of a fulltime equivalent environmental specialist and attorney qualified at the GS-14 equivalent level. [<-Struck out]

    [Struck out->]

    ‘(c) RETENTION OF REVENUES- The salaries and expenses account of the Federal Aviation Administration shall retain as an offsetting collection such sums as may be necessary from such proceeds for the costs of developing and implementing the program required by subsection (a). Such offsetting collections shall be available for obligation subject to the terms and conditions of the receiving appropriations account, and shall be deposited in such accounts on a quarterly basis. Such offsetting collections are authorized to remain available until expended for such purpose. [<-Struck out]

[Struck out->]
‘Sec. 47707. Definitions [<-Struck out]

    [Struck out->]

    ‘In this chapter: [<-Struck out]

      [Struck out->]

      ‘(1) NATIONAL CAPACITY PROJECT- The term ‘national capacity project’ means a project designated by the Secretary under section 44702. [<-Struck out]

      [Struck out->]

      ‘(2) OTHER TERMS- The definitions in section 47102 apply to any terms used in this chapter that are defined in that section.’. [<-Struck out]

    [Struck out->] (b) ADDITIONAL STAFF AUTHORIZED- The Secretary of Transportation is authorized to hire additional environmental specialists and attorneys needed to process environmental impact statements in connection with airport construction projects and to serve as project coordinators and environmental impact team members under section 47703 of title 49, United States Code. [<-Struck out]

    [Struck out->] (c) CLERICAL AMENDMENT- The analysis for subtitle VII is amended by inserting after the item relating to section 475 the following: [<-Struck out]

[Struck out->]

‘477. National capacity projects [<-Struck out]

-- [Struck out->] 47701’. [<-Struck out]

[Struck out->] SEC. 202. CATEGORICAL EXCLUSIONS. [<-Struck out]

    [Struck out->] Not later than 30 days after the date of enactment of this Act, the Secretary of Transportation shall report to the Senate Committee on Commerce, Science, and Transportation on the categorical exclusions currently recognized and provide a list of proposed additional categorical exclusions from the requirement that an environmental assessment or an environmental impact statement be prepared under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) for projects at airports. In determining the list of additional proposed categorical exclusions, the Secretary shall include such other projects as the Secretary determines should be categorically excluded in order to ensure that Department of Transportation environmental staff resources are not diverted to lower priority tasks and are available to expedite the environmental reviews of airport capacity enhancement projects at congested airports. [<-Struck out]

[Struck out->] SEC. 203. ALTERNATIVES ANALYSIS. [<-Struck out]

    [Struck out->] (a) NOTICE REQUIREMENT- Not later than 30 days after the date on which the Secretary of Transportation identifies an airport capacity enhancement project at a congested airport under section 47171(c) of title 49, United States Code, the Secretary shall publish a notice in the Federal Register requesting comments on whether reasonable alternatives exist to the project. [<-Struck out]

    [Struck out->] (b) CERTAIN REASONABLE ALTERNATIVES DEFINED- For purposes of this section, an alternative shall be considered reasonable if-- [<-Struck out]

      [Struck out->] (1) the alternative does not create an unreasonable burden on interstate commerce, the national aviation system, or the navigable airspace; [<-Struck out]

      [Struck out->] (2) the alternative is not inconsistent with maintaining the safe and efficient use of the navigable airspace; [<-Struck out]

      [Struck out->] (3) the alternative does not conflict with a law or regulation of the United States; [<-Struck out]

      [Struck out->] (4) the alternative would result in at least the same reduction in congestion at the airport or in the national aviation system as the proposed project; and [<-Struck out]

      [Struck out->] (5) in any case in which the alternative is a proposed construction project at an airport other than a congested airport, firm commitments to provide such alternate airport capacity exists, and the Secretary determines that such alternate airport capacity will be available no later than 4 years after the date of the Secretary’s determination under this section. [<-Struck out]

    [Struck out->] (c) COMMENT PERIOD- The Secretary shall provide a period of 60 days for comments on a project identified by the Secretary under this section after the date of publication of notice with respect to the project. [<-Struck out]

    [Struck out->] (d) DETERMINATION OF EXISTENCE OF REASONABLE ALTERNATIVES- Not later than 90 days after the last day of a comment period established under subsection (c) for a project, the Secretary shall determine whether reasonable alternatives exist to the project. The determination shall be binding on all persons, including Federal and State agencies, acting under or applying Federal laws when considering the availability of alternatives to the project. [<-Struck out]

    [Struck out->] (e) LIMITATION ON APPLICABILITY- This section does not apply to-- [<-Struck out]

      [Struck out->] (1) any alternatives analysis required under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et. seq.); or [<-Struck out]

      [Struck out->] (2) a project at an airport if the airport sponsor requests, in writing, to the Secretary that this section not apply to the project. [<-Struck out]

[Struck out->] SEC. 204. INCREASE IN APPORTIONMENT FOR, AND FLEXIBILITY OF, NOISE COMPATIBILITY PLANNING PROGRAMS. [<-Struck out]

    [Struck out->] Section 47117(e)(1)(A) is amended-- [<-Struck out]

      [Struck out->] (1) by striking the first sentence and inserting: ‘At least 35 percent for grants for airport noise compatibility planning under section 47505(a)(2) for a national capacity project, for carrying out noise compatibility programs under section 47504(c) of this title, and for noise mitigation projects approved in an environmental record of decision for an airport development project designated as a national capacity project under section 47702.’; and [<-Struck out]

      [Struck out->] (2) by striking ‘or not such 34 percent requirement’ in the second sentence and inserting ‘the funding level required by the preceding sentence’. [<-Struck out]

[Struck out->] SEC. 205. SECRETARY OF TRANSPORTATION TO IDENTIFY AIRPORT CONGESTION-RELIEF PROJECTS AND FORECAST AIRPORT OPERATIONS ANNUALLY. [<-Struck out]

    [Struck out->] (a) Identification of Projects- [<-Struck out]

      [Struck out->] (1) IN GENERAL- Within 90 days after the date of enactment of this Act, the Secretary of Transportation shall provide-- [<-Struck out]

        [Struck out->] (A) a list of planned air traffic and airport-capacity projects at congested Airport Capacity Benchmark airports the completion of which will substantially relieve congestion at those airports; and [<-Struck out]

        [Struck out->] (B) a list of options for expanding capacity at the 8 airports on the list at which the most severe delays are occurring, to the Senate Committee on Commerce, Science, and Transportation, and to the House of Representatives Committee on Transportation and Infrastructure. The Secretary shall provide updated lists to those Committees 2 years after the date of enactment of this Act. [<-Struck out]

      [Struck out->] (2) DELISTING OF PROJECTS- The Secretary shall remove a project from the list provided to the Committees under paragraph (1) upon the request, in writing, of an airport operator if the operator states in the request that construction of the project will not be completed within 10 years from the date of the request. [<-Struck out]

[Struck out->] SEC. 206. DESIGN-BUILD CONTRACTING. [<-Struck out]

    [Struck out->] (a) IN GENERAL- Subchapter I of chapter 471 is amended by adding at the end the following: [<-Struck out]

[Struck out->]
‘ 47138. Design-build contracting [<-Struck out]

    [Struck out->]

    ‘(a) IN GENERAL- The Administrator may approve an application of an airport sponsor under this section to authorize the airport sponsor to award a design-build contract using a selection process permitted under applicable State or local law if-- [<-Struck out]

      [Struck out->]

      ‘(1) the Administrator approves the application using criteria established by the Administrator; [<-Struck out]

      [Struck out->]

      ‘(2) the design-build contract is in a form that is approved by the Administrator; [<-Struck out]

      [Struck out->]

      ‘(3) the Administrator is satisfied that the contract will be executed pursuant to competitive procedures and contains a schematic design adequate for the Administrator to approve the grant; [<-Struck out]

      [Struck out->]

      ‘(4) use of a design-build contract will be cost effective and expedite the project; [<-Struck out]

      [Struck out->]

      ‘(5) the Administrator is satisfied that there will be no conflict of interest; and [<-Struck out]

      [Struck out->]

      ‘(6) the Administrator is satisfied that the selection process will be as open, fair, and objective as the competitive bid system and that at least three or more bids will be submitted for each project under the selection process. [<-Struck out]

    [Struck out->]

    ‘(b) REIMBURSEMENT OF COSTS- The Administrator may reimburse an airport sponsor for design and construction costs incurred before a grant is made pursuant to this section if the project is approved by the Administrator in advance and is carried out in accordance with all administrative and statutory requirements that would have been applicable under this chapter 471, if the project were carried out after a grant agreement had been executed. [<-Struck out]

    [Struck out->]

    ‘(c) DESIGN-BUILD CONTRACT DEFINED- In this section, the term ‘design-build contract’ means an agreement that provides for both design and construction of a project by a contractor.’. [<-Struck out]

    [Struck out->] (b) CONFORMING AMENDMENT- The chapter analysis for chapter 471 is amended by inserting after the item relating to section 47137 the following: [<-Struck out]

[Struck out->]

‘47138. Design-build contracting.’.

[<-Struck out]

[Struck out->] SEC. 207. SPECIAL RULE FOR AIRPORT IN ILLINOIS. [<-Struck out]

    [Struck out->] (a) IN GENERAL- Nothing in this title shall be construed to preclude the application of any provision of this Act to the State of Illinois or any other sponsor of a new airport proposed to be constructed in the State of Illinois. [<-Struck out]

    [Struck out->] (b) AUTHORITY OF THE GOVERNOR- Nothing in this title shall be construed to preempt the authority of the Governor of the State of Illinois as of August 1, 2001, to approve or disapprove airport development projects. [<-Struck out]

[Struck out->] SEC. 208. ELIMINATION OF DUPLICATIVE REQUIREMENTS. [<-Struck out]

    [Struck out->] (a) IN GENERAL- Section 47106(c)(1) is amended-- [<-Struck out]

      [Struck out->] (1) by inserting ‘and’ after ‘project;’ in subparagraph (A)(ii); [<-Struck out]

      [Struck out->] (2) by striking subparagraph (B); and [<-Struck out]

      [Struck out->] (3) by redesignating subparagraph (C) as subparagraph (B). [<-Struck out]

    [Struck out->] (b) CONFORMING AMENDMENTS- Section 47106(c) of such title is amended-- [<-Struck out]

      [Struck out->] (1) by striking paragraph (4); [<-Struck out]

      [Struck out->] (2) by redesignating paragraph (5) as paragraph (4); and [<-Struck out]

      [Struck out->] (3) by striking ‘(1)(C)’ in paragraph (4), as redesignated, and inserting ‘(1)(B)’. [<-Struck out]

[Struck out->] SEC. 209. STREAMLINING THE PASSENGER FACILITY FEE PROGRAM. [<-Struck out]

    [Struck out->] Section 40117 is amended-- [<-Struck out]

      [Struck out->] (1) by striking from ‘finds--’ in paragraph (4) of subsection (b) through the end of that paragraph and inserting ‘finds that the project cannot be paid for from funds reasonably expected to be available for the programs referred to in section 48103.’; [<-Struck out]

      [Struck out->] (2) by adding at the end of subsection (c)(2) the following: [<-Struck out]

        [Struck out->]

        ‘(E) The agency will include in its application or notice submitted under subsection (1) copies of all certifications of agreement or disagreement received under subparagraph (D). [<-Struck out]

        [Struck out->]

        ‘(F) For the purpose of this section, an eligible agency providing notice and consultation to an air carrier and foreign air carrier is deemed to have satisfied this requirement if it limits such notices and consultations to air carriers and foreign air carriers that have a significant business interest on the airport. In developing regulations to implement this provision, the Secretary shall consider a significant business interest to be defined as an air carrier or foreign air carrier that has no less than 1.0 percent of boardings at the airport in the prior calendar year, except that no air carrier or foreign air carrier may be considered excluded under this section if it has at least 25,000 boardings at the airport in the prior calendar year, or if it operates scheduled service, without regard to such percentage requirements.’; [<-Struck out]

      [Struck out->] (3) by redesignating paragraph (3) of subsection (c) as paragraph (4) and inserting after paragraph (2) the following: [<-Struck out]

      [Struck out->]

      ‘(3) Before submitting an application, the eligible agency must provide reasonable notice and an opportunity for public comment. The Secretary shall prescribe regulations that define reasonable notice and provide for at least-- [<-Struck out]

        [Struck out->]

        ‘(A) a requirement that the eligible agency provide public notice of intent to collect a passenger facility fee so as to inform those interested persons and agencies who may be affected, including-- [<-Struck out]

          [Struck out->]

          ‘(i) publication in local newspapers of general circulation; [<-Struck out]

          [Struck out->]

          ‘(ii) publication in other local media; and [<-Struck out]

          [Struck out->]

          ‘(iii) posting the notice on the agency’s website; [<-Struck out]

        [Struck out->]

        ‘(B) a requirement for submission of public comments no sooner than 30 days after publishing of the notice and not later than 45 days after publication; and [<-Struck out]

        [Struck out->]

        ‘(C) a requirement that the agency include in its application or notice submitted under paragraph (1) copies of all comments received under subparagraph (B).’; [<-Struck out]

      [Struck out->] (4) by striking ‘shall’ in the first sentence of paragraph (4), as redesignated, of subsection (c) and inserting ‘may’; and [<-Struck out]

      [Struck out->] (5) by adding at the end the following: [<-Struck out]

    [Struck out->]

    ‘(l) Pilot Program for Passenger Facility Fee Authorizations at Small Airports- [<-Struck out]

      [Struck out->]

      ‘(1) There is established a pilot program for the Secretary to test alternative procedures for authorizing small airports to impose passenger facility fees. An eligible agency may impose a passenger facility fee at a non-hub airport (as defined in section 47102 of this title) that it controls for use on eligible airport-related projects at that airport, in accordance with the provisions of this subsection. These procedures shall be in lieu of the procedures otherwise specified in this section. [<-Struck out]

      [Struck out->]

      ‘(2) The eligible agency must provide reasonable notice and an opportunity for consultation to air carriers and foreign air carriers in accordance with subsection (c)(2), and must provide reasonable notice and opportunity for public comment in accordance with subsection (c)(3). [<-Struck out]

      [Struck out->]

      ‘(3) The eligible agency must submit to the Secretary a notice of intention to impose a passenger facility fee, which notice shall include-- [<-Struck out]

        [Struck out->]

        ‘(A) information that the Secretary may require by regulation on each project for which authority to impose a passenger facility charge is sought; [<-Struck out]

        [Struck out->]

        ‘(B) the amount of revenue from passenger facility charges that is proposed to be collected for each project; and [<-Struck out]

        [Struck out->]

        ‘(C) the level of the passenger facility charge that is proposed. [<-Struck out]

      [Struck out->]

      ‘(4) The Secretary shall acknowledge receipt of the notice and indicate any objection to the imposition of a passenger facility fee for any project identified in the notice within 30 days after receipt of the eligible agency’s notice. [<-Struck out]

      [Struck out->]

      ‘(5) Unless the Secretary objects within 30 days after receipt of the eligible agency’s notice, the eligible agency is authorized to impose a passenger facility fee in accordance with the terms of its notice. [<-Struck out]

      [Struck out->]

      ‘(6) 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. [<-Struck out]

      [Struck out->]

      ‘(7) The authority granted under this subsection shall expire three years after the issuance of the regulation required by paragraph (6). [<-Struck out]

      [Struck out->]

      ‘(8) An acknowledgement issued under paragraph (4) shall not be considered an order of the Secretary issued under section 46110 of this title.’. [<-Struck out]

[Struck out->] SEC. 210. QUARTERLY STATUS REPORTS. [<-Struck out]

    [Struck out->] Beginning with the second calendar quarter ending after the date of enactment of this Act, the Secretary of Transportation shall provide quarterly status reports to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Transportation and Infrastructure on the status of construction of each major runway project undertaken at the largest 40 commercial airports in terms of annual enplanements. [<-Struck out]

[Struck out->] SEC. 211. NOISE DISCLOSURE REQUIREMENTS. [<-Struck out]

    [Struck out->] (a) DEFINITIONS- Section 47501 is amended by adding at the end-- [<-Struck out]

      [Struck out->]

      ‘(3) ‘Federal agency’ means any department, agency, corporation, or other establishment or instrumentality of the executive branch of the Federal Government, and includes the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation. [<-Struck out]

      [Struck out->]

      ‘(4) ‘Federal entity for lending regulation’ means the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Comptroller of the Currency, the Office of Thrift Supervision, the National Credit Union Administration, and the Farm Credit Administration, and with respect to a particular regulated lending institution means the entity primarily responsible for the supervision of the institution. [<-Struck out]

      [Struck out->]

      ‘(5) ‘Federal agency lender’ means a Federal agency that makes direct loans secured by improved real estate or a mobile home, to the extent such agency acts in such capacity. [<-Struck out]

      [Struck out->]

      ‘(6) ‘residential real estate’ means real estate upon which a residential dwelling is located. [<-Struck out]

      [Struck out->]

      ‘(7) ‘noise exposure map’ means a noise exposure map that complies with section 47503 of this title and part 150 of title 14, Code of Federal Regulations. [<-Struck out]

      [Struck out->]

      ‘(8) ‘regulated lending institution’ means any bank, savings and loan association, credit union, farm credit bank, Federal land bank association, production credit association, or similar institution subject to the supervision of a Federal entity for lending regulation.’. [<-Struck out]

    [Struck out->] (b) NOISE EXPOSURE MAPS- Section 47503(b) is amended to read as follows: [<-Struck out]

    [Struck out->]

    ‘(b) REVISED MAPS- If, in an area surrounding an airport, a change in the operation of the airport would establish a substantial new noncompatible use, or would significantly reduce noise over existing noncompatible uses, beyond the forecast year, the airport operator shall submit a revised noise exposure map to the Secretary showing the new noncompatible use or noise reduction.’. [<-Struck out]

    [Struck out->] (c) NOTIFICATION OF NOISE EXPOSURE- Chapter 457 is amended by adding at the end the following: [<-Struck out]

[Struck out->]
‘Sec. 47511. Notification of noise exposure [<-Struck out]

    [Struck out->]

    ‘(a) NOISE EXPOSURE MAP- An airport operator shall make available to lending institutions, upon request, the most recent noise exposure map submitted under section 47503 of this title. [<-Struck out]

    [Struck out->]

    ‘(b) LIST OF AIRPORTS- The Secretary shall maintain a list of airports for which the airport operators have submitted a noise exposure map under section 47503 of this title. [<-Struck out]

    [Struck out->]

    ‘(c) REGULATED LENDING INSTITUTIONS- Each Federal entity for lending regulation (after consultation and coordination with the Federal Financial Institutions Examination Council) shall direct by regulation that a regulated lending institution may not make, increase, extend or renew any loan secured by residential real estate or a mobile home that is located or to be located in the vicinity of an airport on the Secretary’s list described in subsection (b), unless the loan applicant’s purchase agreement for the residential real estate or mobile home provides notice to the purchaser (or satisfactory assurances are provided that the seller has provided written notice to the purchaser prior to the purchaser’s signing of the purchase agreement) that the property is within the area of the noise contours on a noise exposure map submitted under section 47503 of this chapter. The notice to the purchaser shall be acknowledged by the purchaser’s signing of the purchase agreement or other notification document and the regulated lending institution shall retain a record of the receipt of the notice by the purchaser. [<-Struck out]

    [Struck out->]

    ‘(d) FEDERAL AGENCY LENDERS- Each Federal agency lender shall by regulation require notification in the manner provided in subsection (c) with respect to any loan that is made by the Federal agency lender and secured by residential real estate or a mobile home located or to be located in the vicinity of an airport on the Secretary’s list described in subsection (b). [<-Struck out]

    [Struck out->]

    ‘(e) CONTENTS OF NOTICE- The notice required under this section shall disclose-- [<-Struck out]

      [Struck out->]

      ‘(1) that the property is located within the noise contours depicted on the most recent noise exposure map submitted by the airport operator according to section 47503 of this chapter, and is subject to aircraft noise exposure; and [<-Struck out]

      [Struck out->]

      ‘(2) the name and telephone number of the airport where the purchaser may obtain more information on the aircraft noise exposure.’. [<-Struck out]

[Struck out->] SEC. 212. PROHIBITION ON REQUIRING AIRPORTS TO PROVIDE RENT-FREE SPACE FOR FAA OR TSA. [<-Struck out]

    [Struck out->] (a) IN GENERAL- Chapter 401 is amended by adding at the end the following: [<-Struck out]

[Struck out->]
‘ 40129. Prohibition on rent-free space requirements for FAA or TSA [<-Struck out]

    [Struck out->]

    ‘(a) IN GENERAL- Neither the Secretary of Transportation nor the Secretary of Homeland Security may require airport sponsors to provide building construction, maintenance, utilities and expenses, or space in airport sponsor-owned buildings to the Federal Aviation Administration or the Transportation Security Administration without cost for services relating to air traffic control, air navigation, aviation security, or weather reporting. [<-Struck out]

    [Struck out->]

    ‘(b) NEGOTIATED AGREEMENTS- Subsection (a) does not prohibit-- [<-Struck out]

      [Struck out->]

      ‘(1) the negotiation of agreements between either Secretary and an airport sponsor to provide building construction, maintenance, utilities and expenses, or space in airport sponsor-owned buildings to the Federal Aviation Administration or the Transportation Security Administration without cost or at below-market rates; or [<-Struck out]

      [Struck out->]

      ‘(2) either Secretary from requiring airport sponsors to provide land without cost to the Federal Aviation Administration for air traffic control facilities or space without cost to the Transportation Security Administration for necessary security checkpoints.’. [<-Struck out]

    [Struck out->] (b) CONFORMING AMENDMENT- The chapter analysis for chapter 401 is amended by adding at the end the following: [<-Struck out]

[Struck out->]

‘40129. Prohibition on rent-free space requirements for FAA or TSA.’.

[<-Struck out]

[Struck out->] SEC. 213. SPECIAL RULES FOR FISCAL YEAR 2004. [<-Struck out]

    [Struck out->] (a) Apportionment to certain airports with declining boardings- [<-Struck out]

      [Struck out->] (1) IN GENERAL- For fiscal year 2004, the Secretary of Transportation may apportion funds under section 47114 of title 49, United States Code, to the sponsor of an airport described in paragraph (2) in an amount equal to the amount apportioned to that airport under that section for fiscal year 2002, notwithstanding any provision of section 47114 to the contrary. [<-Struck out]

      [Struck out->] (2) AIRPORTS TO WHICH PARAGRAPH (1) APPLIES- Paragraph (1) applies to any airport determined by the Secretary to have had-- [<-Struck out]

        [Struck out->] (A) less than one-half of 1 percent of the total United States passenger boardings (as defined in section 47102(10) of title 49, United States Code) for the calendar year used for determining apportionments under section 47114 for fiscal year 2004; [<-Struck out]

        [Struck out->] (B) less than 10,000 passenger boardings in calendar year 2002; and [<-Struck out]

        [Struck out->] (C) 10,000 or more passenger boardings in calendar year 2000. [<-Struck out]

    [Struck out->] (b) TEMPORARY INCREASE IN GOVERNMENT SHARE OF AIP PROJECT COSTS AT CERTAIN AIRPORTS- Notwithstanding section 47109(a)(3) of title 49, United States Code, the Government’s share of allowable project costs for a grant made in fiscal year 2004 under chapter 471 of that title to an airport described in that section shall be 95 percent. [<-Struck out]

[Struck out->]

TITLE III--AIRLINE SERVICE DEVELOPMENT

[<-Struck out]

[Struck out->] SEC. 301. DELAY REDUCTION MEETINGS. [<-Struck out]

    [Struck out->] (a) IN GENERAL- Subchapter I of chapter 417 is amended by adding at the end the following new section: [<-Struck out]

[Struck out->]
‘Sec. 41723. Delay reduction actions [<-Struck out]

    [Struck out->]

    ‘(a) DELAY REDUCTION MEETINGS- [<-Struck out]

      [Struck out->]

      ‘(1) SCHEDULING REDUCTION MEETINGS- The Secretary of Transportation may request that air carriers meet with the Administrator of the Federal Aviation Administration to discuss flight reductions at severely congested airports to reduce overscheduling and flight delays during hours of peak operation if-- [<-Struck out]

        [Struck out->]

        ‘(A) the Administrator of the Federal Aviation Administration determines that it is necessary to convene such a meeting; and [<-Struck out]

        [Struck out->]

        ‘(B) the Secretary determines that the meeting is necessary to meet a serious transportation need or achieve an important public benefit. [<-Struck out]

      [Struck out->]

      ‘(2) MEETING CONDITIONS- Any meeting under paragraph (1)-- [<-Struck out]

        [Struck out->]

        ‘(A) shall be chaired by the Administrator; [<-Struck out]

        [Struck out->]

        ‘(B) shall be open to all scheduled air carriers; and [<-Struck out]

        [Struck out->]

        ‘(C) shall be limited to discussions involving the airports and time periods described in the Administrator’s determination. [<-Struck out]

      [Struck out->]

      ‘(3) FLIGHT REDUCTION TARGETS- Before any such meeting is held, the Administrator shall establish flight reduction targets for the meeting and notify the attending air carriers of those targets not less than 48 hours before the meeting. [<-Struck out]

      [Struck out->]

      ‘(4) DELAY REDUCTION OFFERS- An air carrier attending the meeting shall make any delay reduction offer to the Administrator rather than to another carrier. [<-Struck out]

      [Struck out->]

      ‘(5) TRANSCRIPT- The Administrator shall ensure that a transcript of the meeting is kept and made available to the public not later than 3 business days after the conclusion of the meeting. [<-Struck out]

    [Struck out->]

    ‘(b) Stormy Weather Agreements Limited Exemption- [<-Struck out]

      [Struck out->]

      ‘(1) IN GENERAL- The Secretary may establish a program to authorize by order discussions and agreements between 2 or more air carriers for the purpose of reducing flight delays during periods of inclement weather. [<-Struck out]

      [Struck out->]

      ‘(2) REQUIREMENTS- An authorization issued under paragraph (1)-- [<-Struck out]

        [Struck out->]

        ‘(A) may only be issued by the Secretary after a determination by the Federal Aviation Administration that inclement weather is likely to adversely and directly affect capacity at an airport for a period of at least 3 hours; [<-Struck out]

        [Struck out->]

        ‘(B) shall apply only to discussions and agreements concerning flights directly affected by the inclement weather; and [<-Struck out]

        [Struck out->]

        ‘(C) shall remain in effect for a period of 24 hours. [<-Struck out]

      [Struck out->]

      ‘(3) PROCEDURE- The Secretary shall establish procedures within 30 days after such date of enactment for-- [<-Struck out]

        [Struck out->]

        ‘(A) filing requests for an authorization under paragraph (1); [<-Struck out]

        [Struck out->]

        ‘(B) participation under paragraph (5) by representatives of the Department of Transportation in any meetings or discussions held pursuant to such an order; and [<-Struck out]

        [Struck out->]

        ‘(C) the determination by the Federal Aviation Administration about the impact of inclement weather. [<-Struck out]

      [Struck out->]

      ‘(4) COPY OF PARTICIPATION REQUEST FILED WITH SECRETARY- Before an air carrier may request an order under paragraph (1), it shall file a request with the Secretary, in such form and manner as the Secretary may prescribe, to participate in the program established under paragraph (1). [<-Struck out]

      [Struck out->]

      ‘(5) DOT PARTICIPATION- The Secretary shall ensure that the Department is represented at any meetings authorized under this subsection. [<-Struck out]

    [Struck out->]

    ‘(c) EXEMPTION AUTHORIZED- When the Secretary finds that it is required by the public interest, the Secretary, as part of an order issued under subsection (b)(1), shall exempt a person affected by the order from the antitrust laws to the extent necessary to allow the person to proceed with the activities approved in the order. [<-Struck out]

    [Struck out->]

    ‘(d) ANTITRUST LAWS DEFINED- In this section, the term ‘antitrust laws’ has the meaning given that term in the first section of the Clayton Act (15 U.S.C. 12). [<-Struck out]

    [Struck out->]

    ‘(e) SUNSET- The authority of the Secretary to issue an order under subsection (b)(1) of this section expires at the end of the 2-year period that begins 45 days after the date of enactment of the Aviation Investment and Revitalization Vision Act. The Secretary may extend the 2-year Period for an additional 2 years if the Secretary determines that such an extension is necessary and in the public interest. The Secretary shall notify the Senate Committee on Commerce, Science, and Transportation, and to the House of Representatives Committee on Transportation and Infrastructure of any such extension.’. [<-Struck out]

    [Struck out->] (b) CONFORMING AMENDMENT- The chapter analysis for chapter 417 is amended by inserting after the item relating to section 41722 the following new item: [<-Struck out]

      [Struck out->]

      ‘41723. Delay reduction actions.’. [<-Struck out]

[Struck out->] SEC. 302. REAUTHORIZATION OF ESSENTIAL AIR SERVICE PROGRAM. [<-Struck out]

    [Struck out->] There are authorized to be appropriated to the Secretary of Transportation to carry out the essential air service program under subchapter II of chapter 417 of title 49, United States Code, $113,000,000 for each of the fiscal years 2004, 2005, and 2006. [<-Struck out]

[Struck out->] SEC. 303. SMALL COMMUNITY AIR SERVICE DEVELOPMENT PILOT PROGRAM. [<-Struck out]

    [Struck out->] (a) 3-year Extension- Section 41743(e)(2) of title 49, United States Code, is amended-- [<-Struck out]

      [Struck out->] (1) by striking ‘There is’ and inserting ‘There are’; [<-Struck out]

      [Struck out->] (2) by striking ‘2001 and’ and inserting ‘2001,’; and [<-Struck out]

      [Struck out->] (3) by striking ‘2003’ and inserting ‘2003, and $27,500,000 for the 3 fiscal year period beginning with fiscal year 2004.’. [<-Struck out]

    [Struck out->] (b) ADDITIONAL COMMUNITIES- Section 41743(c)(4) of such title is amended by striking ‘program.’ and inserting‘program each year. No community, consortia of communities, or combination thereof may participate in the program twice.’. [<-Struck out]

[Struck out->] SEC. 304. DOT STUDY OF COMPETITION AND ACCESS PROBLEMS AT LARGE AND MEDIUM HUB AIRPORTS. [<-Struck out]

    [Struck out->] (a) IN GENERAL- The Secretary of Transportation shall study competition and airline access problems at hub airports (as defined in section 41731(a)(3)) of title 49, United States Code, and medium hub airports (as defined in section 41714(h)(9) of that title). In the study, the Secretary shall examine, among other matters-- [<-Struck out]

      [Struck out->] (1) gate usage and availability; and [<-Struck out]

      [Struck out->] (2) the effects of the pricing of gates and other facilities on competition and access. [<-Struck out]

    [Struck out->] (b) REPORT- The Secretary shall transmit a report of the Secretary’s findings and conclusions together with any recommendations, including legislative recommendations, the Secretary may have for improving competition and airline access at such airports to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Transportation and Infrastructure within 6 months after the date of enactment of this Act. [<-Struck out]

[Struck out->] SEC. 305. COMPETITION DISCLOSURE REQUIREMENT FOR LARGE AND MEDIUM HUB AIRPORTS. [<-Struck out]

    [Struck out->] Section 47107 is amended by adding at the end the following: [<-Struck out]

    [Struck out->]

    ‘(q) COMPETITION DISCLOSURE REQUIREMENT- [<-Struck out]

      [Struck out->]

      ‘(1) IN GENERAL- The Secretary of Transportation may approve an application under this subchapter for an airport development project grant for a hub airport or a medium hub airport only if the Secretary receives assurances that the airport sponsor will provide the information required by paragraph (2) at such time and in such form as the Secretary may require. [<-Struck out]

      [Struck out->]

      ‘(2) COMPETITIVE ACCESS- If an airport denies an application by an air carrier to receive access to gates or other facilities at that airport in order to provide service to the airport or to expand service at the airport, then, within 30 days after denying the request, the airport sponsor shall-- [<-Struck out]

        [Struck out->]

        ‘(A) notify the Secretary of the denial; and [<-Struck out]

        [Struck out->]

        ‘(B) transmit a report to the Secretary that-- [<-Struck out]

          [Struck out->]

          ‘(i) describes the request; [<-Struck out]

          [Struck out->]

          ‘(ii) explains the reasons for the denial; and [<-Struck out]

          [Struck out->]

          ‘(iii) provides a time frame within which, if any, the airport will be able to accommodate the request. [<-Struck out]

      [Struck out->]

      ‘(3) DEFINITIONS- In this subsection: [<-Struck out]

        [Struck out->]

        ‘(A) HUB AIRPORT- The term ‘hub airport’ has the meaning given that term by section 41731(a)(3). [<-Struck out]

        [Struck out->]

        ‘(B) MEDIUM HUB AIRPORT- The term ‘medium hub airport’ has the meaning given that term by section 41714(h)(9).’. [<-Struck out]

[Struck out->]

TITLE IV--AVIATION SECURITY

[<-Struck out]

[Struck out->] SEC. 401. STUDY OF EFFECTIVENESS OF TRANSPORTATION SECURITY SYSTEM. [<-Struck out]

    [Struck out->] (a) IN GENERAL- The Secretary of Homeland Security shall study the effectiveness of the aviation security system, including the air marshal program, hardening of cockpit doors, and security screening of passengers, checked baggage, and cargo. [<-Struck out]

    [Struck out->] (b) REPORT- The Secretary shall transmit a report of the Secretary’s findings and conclusions together with any recommendations, including legislative recommendations, the Secretary may have for improving the effectiveness of aviation security to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Transportation and Infrastructure within 6 months after the date of enactment of this Act. In the report the Secretary shall also describe any redeployment of Transportation Security Administration resources based on those findings and conclusions. The Secretary may submit the report to the Committees in classified and redacted form. [<-Struck out]

[Struck out->] SEC. 402. AVIATION SECURITY CAPITAL FUND. [<-Struck out]

    [Struck out->] (a) IN GENERAL- There is established within the Department of Transportation a fund to be known as the Aviation Security Capital Fund. There are appropriated to the Fund to $500,000,000 for each of the fiscal years 2004 through 2007, such amounts to be derived from fees received under section 44940 of title 49, United States Code. Amounts in the fund shall be allocated in such a manner that-- [<-Struck out]

      [Struck out->] (1) 40 percent shall be made available for hub airports; [<-Struck out]

      [Struck out->] (2) 20 percent shall be made available for medium hub airports; [<-Struck out]

      [Struck out->] (3) 15 percent shall be made available for small hub airports and non-hub airports; and [<-Struck out]

      [Struck out->] (4) 25 percent may be distributed at the Secretary’s discretion. [<-Struck out]

    [Struck out->] (b) PURPOSE- Amounts in the Fund shall be available to the Secretary of Transportation, after consultation with the Under Secretary of Homeland Security for Border and Transportation Security to provide financial assistance to airport sponsors to defray capital investment in transportation security at airport facilities in accordance with the provisions of this section. The program shall be administered in concert with the airport improvement program under chapter 417 of title 49, United States Code. [<-Struck out]

    [Struck out->] (c) APPORTIONMENT- Amounts made available under subsection (a)(1), (a)(2), or (a)(3) shall be apportioned among the airports in each category in accordance with a formula based on the ratio that passenger emplanements at each airport in the category bears to the total passenger emplanements at all airports in the that category. [<-Struck out]

    [Struck out->] (d) MATCHING REQUIREMENTS- [<-Struck out]

      [Struck out->] (1) IN GENERAL- Not less than the following percentage of the costs of any project funded under this section shall be derived from non-Federal sources: [<-Struck out]

        [Struck out->] (A) For hub airports and medium hub airports, 25 percent. [<-Struck out]

        [Struck out->] (B) For airports other than hub airports and medium hub airports, 10 percent. [<-Struck out]

      [Struck out->] (2) USE OF BOND PROCEEDS- In determining the amount of non-Federal sources of funds, the proceeds of State and local bond issues shall not be considered to be derived, directly or indirectly, from Federal sources without regard to the Federal income tax treatment of interest and principal of such bonds. [<-Struck out]

    [Struck out->] (e) LETTERS OF INTENT- The Secretary of Transportation, or his delegate, may execute letters of intent to commit funding to airport sponsors from the Fund. [<-Struck out]

    [Struck out->] (f) CONFORMING AMENDMENT- Section 44940(a)(1) of title 49, United States Code, is amended by adding at the end the following: [<-Struck out]

        [Struck out->]

        ‘(H) The costs of security-related capital improvements at airports.’. [<-Struck out]

    [Struck out->] (g) DEFINITIONS- Any term used in this section that is defined or used in chapter 417 of title 49 United States Code has the meaning given that term in that chapter. [<-Struck out]

[Struck out->] SEC. 403. TECHNICAL AMENDMENTS RELATED TO SECURITY-RELATED AIRPORT DEVELOPMENT. [<-Struck out]

    [Struck out->] (a) DEFINITION OF AIRPORT DEVELOPMENT- Section 47102(3)(B) is amended-- [<-Struck out]

      [Struck out->] (1) by inserting ‘and’ after the semicolon in clause (viii); [<-Struck out]

      [Struck out->] (2) by striking ‘circular; and’ in clause (ix) and inserting ‘circular.’; and [<-Struck out]

      [Struck out->] (3) by striking clause (x). [<-Struck out]

    [Struck out->] (b) IMPROVEMENT OF FACILITIES AND EQUIPMENT- Section 301(a) of the Federal Aviation Reauthorization Act of 1996 (49 U.S.C. 44901 note) is amended by striking ‘travel.’ and inserting ‘travel if the improvements or equipment will be owned and operated by the airport.’. [<-Struck out]

[Struck out->]

TITLE V--MISCELLANEOUS

[<-Struck out]

[Struck out->] SEC. 501. EXTENSION OF WAR RISK INSURANCE AUTHORITY. [<-Struck out]

    [Struck out->] (a) EXTENSION OF POLICIES- Section 44302(f)(1) is amended by striking ‘2003,’ each place it appears and inserting ‘2006,’. [<-Struck out]

    [Struck out->] (b) EXTENSION OF LIABILITY LIMITATION- Section 44303(b) is amended by striking ‘2003,’ and inserting ‘2006,’. [<-Struck out]

    [Struck out->] (c) EXTENSION OF AUTHORITY- Section 44310 is amended by striking ‘2003.’ and inserting ‘2006.’. [<-Struck out]

[Struck out->] SEC. 502. COST-SHARING OF AIR TRAFFIC MODERNIZATION PROJECTS. [<-Struck out]

    [Struck out->] (a) IN GENERAL- Chapter 445 is amended by adding at the end the following: [<-Struck out]

[Struck out->]
‘ 44517. Program to permit cost-sharing of air traffic modernization projects [<-Struck out]

    [Struck out->]

    ‘(a) IN GENERAL- Subject to the requirements of this section, the Secretary may carry out a program under which the Secretary may make grants to project sponsors for not more than 10 eligible projects per fiscal year for the purpose of improving aviation safety and enhancing mobility of the Nation’s air transportation system by encouraging non-Federal investment in critical air traffic control facilities and equipment. [<-Struck out]

    [Struck out->]

    ‘(b) FEDERAL SHARE- The Federal share of the cost of an eligible project carried out under the program shall not exceed 33 percent. The non-Federal share of the cost of an eligible project shall be provided from non-Federal sources, including revenues collected pursuant to section 40117 of this title. [<-Struck out]

    [Struck out->]

    ‘(c) LIMITATION ON GRANT AMOUNTS- No eligible project may receive more than $5,000,000 in Federal funds under the program. [<-Struck out]

    [Struck out->]

    ‘(d) FUNDING- The Secretary shall use amounts appropriated under section 48101(a) of this title to carry out this program. [<-Struck out]

    [Struck out->]

    ‘(e) DEFINITIONS- In this section: [<-Struck out]

      [Struck out->]

      ‘(1) ELIGIBLE PROJECT- The term ‘eligible project’ means a project relating to the Nation’s air traffic control system that is certified or approved by the Administrator and that promotes safety, efficiency, or mobility. Such projects may include-- [<-Struck out]

        [Struck out->]

        ‘(A) airport-specific air traffic facilities and equipment, including local area augmentation systems, instrument landing systems, weather and wind shear detection equipment, lighting improvements, and control towers; [<-Struck out]

        [Struck out->]

        ‘(B) automation tools to effect improvements in airport capacity, including passive final approach spacing tools and traffic management advisory equipment; and [<-Struck out]

        [Struck out->]

        ‘(C) facilities and equipment that enhance airspace control procedures, including consolidation of terminal radar control facilities and equipment, or assist in en route surveillance, including oceanic and offshore flight tracking. [<-Struck out]

      [Struck out->]

      ‘(2) PROJECT SPONSOR- The term ‘project sponsor’ means any major user of the National Airspace System, as determined by the Secretary, including a public-use airport or a joint venture between a public-use airport and one or more air carriers. [<-Struck out]

    [Struck out->]

    ‘(f) TRANSFERS OF EQUIPMENT- Notwithstanding any other provision of law, and upon agreement by the Administrator of the Federal Aviation Administration, project sponsors may transfer, without consideration, to the Federal Aviation Administration, facilities, equipment, or automation tools, the purchase of which was assisted by a grant made under this section, if such facilities, equipment or tools meet Federal Aviation Administration operation and maintenance criteria. [<-Struck out]

    [Struck out->]

    ‘(g) GUIDELINES- The Administrator shall issue advisory guidelines on the implementation of the program, which shall not be subject to administrative rulemaking requirements under subchapter II of chapter 5 of title 5.’. [<-Struck out]

    [Struck out->] (b) CONFORMING AMENDMENT- The chapter analyses for chapter 445 is amended by adding at the end the following: [<-Struck out]

[Struck out->]

‘44517. Program to permit cost-sharing of air traffic modernization projects.’.

[<-Struck out]

[Struck out->] SEC. 503. COUNTERFEIT OR FRAUDULENTLY REPRESENTED PARTS VIOLATIONS. [<-Struck out]

    [Struck out->] Section 44726(a)(1) is amended -- [<-Struck out]

      [Struck out->] (1) by striking ‘or’ after the semicolon in subparagraph (A); [<-Struck out]

      [Struck out->] (2) by redesignating subparagraph (B) as subparagraph (D); [<-Struck out]

      [Struck out->] (3) by inserting after subparagraph (A) the following: [<-Struck out]

        [Struck out->]

        ‘(B) who knowingly, and with intent to defraud, carried out or facilitated an activity punishable under a law described in subparagraph (A); [<-Struck out]

        [Struck out->]

        ‘(C) whose certificate is revoked under subsection (b) of this section; or’; and [<-Struck out]

      [Struck out->] (4) by striking ‘convicted of such a violation.’ in subparagraph (D), as redesignated, and inserting ‘described in subparagraph (A), (B) or (C).’. [<-Struck out]

[Struck out->] SEC. 504. CLARIFICATIONS TO PROCUREMENT AUTHORITY. [<-Struck out]

    [Struck out->] (a) Update and Clarification of Authority- [<-Struck out]

      [Struck out->] (1) Section 40110(c) is amended to read as follows: [<-Struck out]

    [Struck out->]

    ‘(c) DUTIES AND POWERS- When carrying out subsection (a) of this section, the Administrator of the Federal Aviation Administration may-- [<-Struck out]

      [Struck out->]

      ‘(1) notwithstanding section 1341(a)(1) of title 31, lease an interest in property for not more than 20 years; [<-Struck out]

      [Struck out->]

      ‘(2) consider the reasonable probable future use of the underlying land in making an award for a condemnation of an interest in airspace; and [<-Struck out]

      [Struck out->]

      ‘(3) dispose of property under subsection (a)(2) of this section, except for airport and airway property and technical equipment used for the special purposes of the Administration, only under sections 121, 123, and 126 and chapter 5 of title 40.’. [<-Struck out]

      [Struck out->] (2) Section 40110(d)(1) is amended by striking ‘implement, not later than January 1, 1996,’ and inserting ‘implement’. [<-Struck out]

    [Struck out->] (b) CLARIFICATION- Section 106(f)(2)(A)(ii) is amended by striking ‘property’ and inserting ‘property, services,’. [<-Struck out]

SECTION 1. SHORT TITLE; AMENDMENT OF TITLE 49.

    (a) SHORT TITLE- This Act may be cited as the ‘Aviation Investment and Revitalization Vision Act’.

    (b) Amendment of Title 49- Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or a repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of title 49, United States Code.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

      Sec. 1. Short title; amendment of title 49.

      Sec. 2. Table of contents.

TITLE I--REAUTHORIZATIONS; FAA MANAGEMENT

      Sec. 101. Airport improvement program.

      Sec. 102. Airway facilities improvement program.

      Sec. 103. FAA operations.

      Sec. 104. Research, engineering, and development.

      Sec. 105. Other programs.

      Sec. 106. Reorganization of the Air Traffic Services Subcommittee.

      Sec. 107. Clarification of responsibilities of chief operating officer.

TITLE II--AIRPORT DEVELOPMENT

      Sec. 201. National capacity projects.

      Sec. 202. Categorical exclusions.

      Sec. 203. Alternatives analysis.

      Sec. 204. Increase in apportionment for, and flexibility of, noise compatibility planning programs.

      Sec. 205. Secretary of Transportation to identify airport congestion-relief projects and forecast airport operations annually.

      Sec. 206. Design-build contracting.

      Sec. 207. Special rule for airport in Illinois.

      Sec. 208. Elimination of duplicative requirements.

      Sec. 209. Streamlining the passenger facility fee program.

      Sec. 210. Quarterly status reports.

      Sec. 211. Noise disclosure requirements.

      Sec. 212. Prohibition on requiring airports to provide rent-free space for FAA or TSA.

      Sec. 213. Special rules for fiscal year 2004.

      Sec. 214. Agreements for operation of airport facilities.

      Sec. 215. Public agencies.

      Sec. 216. Flexible funding for nonprimary airport apportionments.

TITLE III--AIRLINE SERVICE DEVELOPMENT

Subtitle A--Program Enhancements

      Sec. 301. Delay reduction meetings.

      Sec. 302. Small community air service development pilot program.

      Sec. 303. DOT study of competition and access problems at large and medium hub airports.

      Sec. 304. Competition disclosure requirement for large and medium hub airports.

Subtitle B--Small Community and Rural Air Service Revitalization

      Sec. 351. Reauthorization of essential air service program.

      Sec. 352. Incentive program.

      Sec. 353. Pilot programs.

      Sec. 354. EAS program authority changes.

TITLE IV--AVIATION SECURITY

      Sec. 401. Study of effectiveness of transportation security system.

      Sec. 402. Aviation security capital fund.

      Sec. 403. Technical amendments related to security-related airport development.

      Sec. 404. Armed forces charters.

TITLE V--MISCELLANEOUS

      Sec. 501. Extension of war risk insurance authority.

      Sec. 502. Cost-sharing of air traffic modernization projects.

      Sec. 503. Counterfeit or fraudulently represented parts violations.

      Sec. 504. Clarifications to procurement authority.

      Sec. 505. Judicial review.

      Sec. 506. Civil penalties.

      Sec. 507. Miscellaneous amendments.

      Sec. 508. Low-emission airport vehicles and infrastructure.

      Sec. 509. Low-emission airport vehicles and ground support equipment.

      Sec. 510. Pacific emergency diversion airport.

      Sec. 511. Gulf of Mexico aviation service improvements.

      Sec. 512. Air traffic control collegiate training initiative.

      Sec. 513. Increase in certain slots.

      Sec. 514. Air transportation oversight system plan.

      Sec. 515. National small community air service development ombudsman.

      Sec. 516. National commission on small community air service.

      Sec. 517. Training certification for cabin crew.

      Sec. 518. Aircraft manufacturer insurance.

      Sec. 519. Ground-based precision navigational aids.

      Sec. 520. Standby power efficiency program.

TITLE VI--SECOND CENTURY OF FLIGHT

      Sec. 601. Findings.

Subtitle A--The Office of Aerospace and Aviation Liaison

      Sec. 621. Office of Aerospace and Aviation Liaison.

      Sec. 622. National Air Traffic Management System Development Office.

      Sec. 623. Report on certain market developments and government policies.

Subtitle B--Technical Programs

      Sec. 641. Aerospace and Aviation Safety workforce initiative.

      Sec. 642. Scholarships for service.

Subtitle C--FAA Research, Engineering, and Development

      Sec. 661. Research program to improve airfield pavements.

      Sec. 662. Ensuring appropriate standards for airfield pavements.

      Sec. 663. Assessment of wake turbulence research and development program.

      Sec. 664. Cabin air quality research program.

      Sec. 665. International role of the FAA.

      Sec. 666. FAA report on other nations’ safety and technological advancements.

      Sec. 667. Development of analytical tools and certification methods.

      Sec. 668. Pilot program to provide incentives for development of new technologies.

      Sec. 669. FAA center for excellence for applied research and training in the use of advanced materials in transport aircraft.

      Sec. 670. FAA certification of design organizations.

      Sec. 671. Report on long term environmental improvements.

TITLE I--REAUTHORIZATIONS; FAA MANAGEMENT

SEC. 101. AIRPORT IMPROVEMENT PROGRAM.

    (a) AUTHORIZATION OF APPROPRIATIONS- Section 48103 is amended--

      (1) by inserting ‘(a) IN GENERAL- ’ before ‘The’;

      (2) by striking ‘and’ in paragraph (4);

      (3) by striking ‘2003.’ in paragraph (5) and inserting ‘2003;’;

      (4) by inserting after paragraph (5) the following:

      ‘(6) $3,400,000,000 for fiscal year 2004;

      ‘(7) $3,500,000,000 for fiscal year 2005; and

      ‘(8) $3,600,000,000 for fiscal year 2006.’; and

      (5) by adding at the end the following:

    ‘(b) ADMINISTRATIVE EXPENSES- From the amounts authorized by paragraphs (6) through (8) of subsection (a), there shall be available for administrative expenses relating to the airport improvement program, passenger facility fee approval and oversight, national airport system planning, airport standards development and enforcement, airport certification, airport-related environmental activities (including legal service), to remain available until expended--

      ‘(1) for fiscal year 2004, $69,737,000;

      ‘(2) for fiscal year 2005, $71,816,000; and

      ‘(3) for fiscal year 2006, $74,048,000.’.

    (b) OBLIGATIONAL AUTHORITY- Section 47104(c) is amended by striking ‘2003,’ and inserting ‘2006,’.

SEC. 102. AIRWAY FACILITIES IMPROVEMENT PROGRAM.

    (a) IN GENERAL- Section 48101(a) is amended by adding at the end the following:

      ‘(6) $2,916,000,000 for fiscal year 2004.

      ‘(7) $2,971,000,000 for fiscal year 2005.

      ‘(8) $3,030,000,000 for fiscal year 2006.’.

    (b) BIANNUAL REPORTS- Beginning 180 days after the date of enactment of Act, the Administrator of the Federal Aviation Administration shall transmit a report to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Transportation and Infrastructure every 6 months that describes--

      (1) the 10 largest programs funded under section 48101(a) of title 49, United States Code;

      (2) any changes in the budget for such programs;

      (3) the program schedule; and

      (4) technical risks associated with the programs.

SEC. 103. FAA OPERATIONS.

    (a) IN GENERAL- Section 106(k)(1) is amended--

      (1) by striking ‘and’ in subparagraph (C);

      (2) by striking ‘2003.’ in subparagraph (D) and inserting ‘2003;’; and

      (3) by adding at the end the following:

        ‘(E) $7,591,000,000 for fiscal year 2004;

        ‘(F) $7,732,000,000 for fiscal year 2005; and

        ‘(G) $7,889,000,000 for fiscal year 2006.’.

    (b) ANNUAL REPORT- Beginning with the submission of the Budget of the United States to the Congress for fiscal year 2004, the Administrator of the Federal Aviation Administration shall transmit a report to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Transportation and Infrastructure that describes the overall air traffic controller staffing plan, including strategies to address anticipated retirement and replacement of air traffic controllers.

SEC. 104. RESEARCH, ENGINEERING, AND DEVELOPMENT.

    (a) AMOUNTS AUTHORIZED- Section 48102(a) is amended--

      (1) by striking ‘and’ at the end of paragraph (7);

      (2) by striking the period at the end of paragraph (8) and inserting a semicolon; and

      (3) by adding at the end the following:

      ‘(9) for fiscal year 2004, $289,000,000, including--

        ‘(A) $200,000,000 to improve aviation safety, including icing, crashworthiness, and aging aircraft;

        ‘(B) $18,000,000 to improve the efficiency of the air traffic control system;

        ‘(C) $27,000,000 to reduce the environmental impact of aviation;

        ‘(D) $16,000,000 to improve the efficiency of mission support; and

        ‘(E) $28,000,000 to improve the durability and maintainability of advanced material structures in transport airframe structures;

      ‘(10) for fiscal year 2005, $304,000,000, including--

        ‘(A) $211,000,000 to improve aviation safety;

        ‘(B) $19,000,000 to improve the efficiency of the air traffic control system;

        ‘(C) $28,000,000 to reduce the environmental impact of aviation;

        ‘(D) $17,000,000 to improve the efficiency of mission support; and

        ‘(E) $29,000,000 to improve the durability and maintainability of advanced material structures in transport airframe structures; and

      ‘(11) for fiscal year 2006, $317,000,000, including--

        ‘(A) $220,000,000 to improve aviation safety;

        ‘(B) $20,000,000 to improve the efficiency of the air traffic control system;

        ‘(C) $29,000,000 to reduce the environmental impact of aviation;

        ‘(D) $18,000,000 to improve the efficiency of mission support; and

        ‘(E) $30,000,000 to improve the durability and maintainability of advanced material structures in transport airframe structures.’.

SEC. 105. OTHER PROGRAMS.

    Section 106 of the Wendell H. Ford Aviation Investment and Reform Act for the 21st Century is amended--

      (1) by striking ‘2003’ in subsection (a)(1)(A) and subsection (c)(2) and inserting ‘2006’; and

      (2) by striking ‘2003,’ in subsection (a)(2) and inserting ‘2006,’.

SEC. 106. REORGANIZATION OF THE AIR TRAFFIC SERVICES SUBCOMMITTEE.

    (a) IN GENERAL- Section 106 is amended--

      (1) by redesignating subsections (q) and (r) as subsections (r) and (s), respectively; and

      (2) by inserting after subsection (p) the following:

    ‘(q) AIR TRAFFIC MANAGEMENT COMMITTEE-

      ‘(1) ESTABLISHMENT- The Secretary of Transportation shall establish an advisory committee which shall be known as the Air Traffic Services Committee (in this subsection referred to as the ‘Committee’).

      ‘(2) Membership-

        ‘(A) COMPOSITION AND APPOINTMENT- The Committee shall be composed of--

          ‘(i) the Administrator of the Federal Aviation Administration, who shall serve as chair; and

          ‘(ii) 4 members, to be appointed by the Secretary, after consultation with the Committee on Transportation and Infrastructure of the House of Representatives, and the Committee on Commerce, Science, and Transportation of the Senate.

        ‘(B) NO FEDERAL OFFICER OR EMPLOYEE- No member appointed under subparagraph (A)(ii) may serve as an officer or employee of the United States Government while serving as a member of the Committee.

        ‘(C) ELIGIBILITY- Members appointed under subparagraph (A)(ii) shall--

          ‘(i) have a fiduciary responsibility to represent the public interest;

          ‘(ii) be citizens of the United States; and

          ‘(iii) be appointed without regard to political affiliation and solely on the basis of their professional experience and expertise in one or more of the following areas:

            ‘(I) Management of large service organizations.

            ‘(II) Customer service.

            ‘(III) Management of large procurements.

            ‘(IV) Information and communications technology.

            ‘(V) Organizational development.

            ‘(VI) Labor relations.

          At least one of such members should have a background in managing large organizations successfully. In the aggregate, such members should collectively bring to bear expertise in all of the areas described in subclauses (I) through (VI).

        ‘(D) PROHIBITIONS ON MEMBERS OF COMMITTEE- No member appointed under subparagraph (A)(ii) may--

          ‘(i) have a pecuniary interest in, or own stock in or bonds of, an aviation or aeronautical enterprise, except an interest in a diversified mutual fund or an interest that is exempt from the application of section 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 activities, in activities to influence aviation-related legislation.

        ‘(E) Claims against members-

          ‘(i) IN GENERAL- A member appointed under subparagraph (A)(ii) shall have no personal liability under Federal law with respect to any claim arising out of or resulting from an act or omission by such member within the scope of service as a member of the Air Traffic Services Committee.

          ‘(ii) EFFECT ON OTHER LAW- This subparagraph shall not be construed--

            ‘(I) to affect any other immunity or protection that may be available to a member of the Committee under applicable law with respect to such transactions;

            ‘(II) to affect any other right or remedy against the United States under applicable law; or

            ‘(III) to limit or alter in any way the immunities that are available under applicable law for Federal officers and employees.

        ‘(F) Ethical considerations-

          ‘(i) FINANCIAL DISCLOSURE- During the entire period that an individual appointed under subparagraph (A)(ii) is a member of the Committee, such individual shall be treated as serving as an officer or employee referred to in section 101(f) of the Ethics in Government Act of 1978 for purposes of title I of such Act; except that section 101(d) of such Act shall apply without regard to the number of days of service in the position.

          ‘(ii) RESTRICTIONS ON POST-EMPLOYMENT- For purposes of section 207(c) of title 18, an individual appointed under subparagraph (A)(ii) shall be treated as an employee referred to in section 207(c)(2)(A)(i) of such title during the entire period the individual is a member of the Committee; except that subsections (c)(2)(B) and (f) of section 207 of such title shall not apply.

        ‘(G) TERMS FOR AIR TRAFFIC SERVICES COMMITTEE MEMBERS- A member appointed under subparagraph (A)(ii) shall be appointed for a term of 5 years.

        ‘(H) REAPPOINTMENT- An individual may not be appointed under subparagraph (A)(ii) to more than two 5-year terms.

        ‘(I) VACANCY- Any vacancy on the Committee shall be filled in the same manner as the original appointment. Any member appointed to fill a vacancy occurring before the expiration of the term for which the member’s predecessor was appointed shall be appointed for the remainder of that term.

        ‘(J) CONTINUATION IN OFFICE- A member whose term expires shall continue to serve until the date on which the member’s successor takes office.

        ‘(K) REMOVAL- Any member appointed under subparagraph (A)(ii) may be removed for cause by the Secretary.

      ‘(3) General responsibilities-

        ‘(A) OVERSIGHT- The Committee shall oversee the administration, management, conduct, direction, and supervision of the air traffic control system.

        ‘(B) CONFIDENTIALITY- The Committee shall ensure that appropriate confidentiality is maintained in the exercise of its duties.

      ‘(4) SPECIFIC RESPONSIBILITIES- The Committee shall have the following specific responsibilities:

        ‘(A) STRATEGIC PLANS- To review, approve, and monitor the strategic plan for the air traffic control system, including the establishment of--

          ‘(i) a mission and objectives;

          ‘(ii) standards of performance relative to such mission and objectives, including safety, efficiency, and productivity; and

          ‘(iii) annual and long-range strategic plans.

        ‘(B) MODERNIZATION AND IMPROVEMENT- To review and approve--

          ‘(i) methods to accelerate air traffic control modernization and improvements in aviation safety related to air traffic control; and

          ‘(ii) procurements of air traffic control equipment in excess of $100,000,000.

        ‘(C) OPERATIONAL PLANS- To review the operational functions of the air traffic control system, including--

          ‘(i) plans for modernization of the air traffic control system;

          ‘(ii) plans for increasing productivity or implementing cost-saving measures; and

          ‘(iii) plans for training and education.

        ‘(D) MANAGEMENT- To--

          ‘(i) review and approve the Administrator’s appointment of a Chief Operating Officer under section 106(s);

          ‘(ii) review the Administrator’s selection, evaluation, and compensation of senior executives of the Administration who have program management responsibility over significant functions of the air traffic control system;

          ‘(iii) review and approve the Administrator’s plans for any major reorganization of the Administration that would impact on the management of the air traffic control system;

          ‘(iv) review and approve the Administrator’s cost accounting and financial management structure and technologies to help ensure efficient and cost-effective air traffic control operation; and

          ‘(v) review the performance and compensation of managers responsible for major acquisition projects, including the ability of the managers to meet schedule and budget targets.

        ‘(E) BUDGET- To--

          ‘(i) review and approve the budget request of the Administration related to the air traffic control system prepared by the Administrator;

          ‘(ii) submit such budget request to the Secretary; and

          ‘(iii) ensure that the budget request supports the annual and long-range strategic plans.

      ‘(5) CONGRESSIONAL REVIEW OF PRE-OMB BUDGET REQUEST- The Secretary shall submit the budget request referred to in paragraph (4)(E)(ii) for any fiscal year to the President who shall transmit such request, without revision, to the Committees on Transportation and Infrastructure and Appropriations of the House of Representatives and the Committees on Commerce, Science, and Transportation and Appropriations of the Senate, together with the President’s annual budget request for the Federal Aviation Administration for such fiscal year.

      ‘(6) Committee personnel matters-

        ‘(A) COMPENSATION OF MEMBERS- Each member of the Committee, other than the chair and vice chair, shall be compensated at a rate of $25,000 per year.

        ‘(B) STAFF- The chairperson of the Committee may appoint and terminate any personnel that may be necessary to enable the Committee to perform its duties.

        ‘(C) PROCUREMENT OF TEMPORARY AND INTERMITTENT SERVICES- The chairperson of the Committee may procure temporary and intermittent services under section 3109(b) of title 5, United States Code.

      ‘(7) Administrative matters-

        ‘(A) POWERS OF CHAIR- Except as otherwise provided by a majority vote of the Committee, the powers of the chairperson shall include--

          ‘(i) establishing subcommittees;

          ‘(ii) setting meeting places and times;

          ‘(iii) establishing meeting agendas; and

          ‘(iv) developing rules for the conduct of business.

        ‘(B) MEETINGS- The Committee shall meet at least quarterly and at such other times as the chairperson determines appropriate.

        ‘(C) QUORUM- Three members of the Committee shall constitute a quorum. A majority of members present and voting shall be required for the Committee to take action.

        ‘(D) APPLICATION OF SUBSECTION (p) PROVISIONS- The following provisions of subsection (p) apply to the Committee to the same extent as they apply to the Management Advisory Council:

          ‘(i) Paragraph (4)(C) (relating to access to documents and staff).

          ‘(ii) Paragraph (5) (relating to nonapplication of Federal Advisory Committee Act).

          ‘(iii) Paragraph (6)(G) (relating to travel and per diem).

          ‘(iv) Paragraph (6)(H) (relating to detail of personnel).

      ‘(8) ANNUAL REPORT- The Committee shall each year report with respect to the conduct of its responsibilities under this title to the Administrator, the Management Advisory Council, the Committee on Transportation and Infrastructure of the House of Representatives, and the Committee on Commerce, Science, and Transportation of the Senate.’.

    (b) CONFORMING AMENDMENTS-

      (1) Subsection (p) of section 106 is amended--

        (A) by striking ‘18’ in paragraph (2) and inserting ‘13’;

        (B) by inserting ‘and’ after the semicolon in subparagraph (C) of paragraph (2);

        (C) by striking ‘Transportation; and’ in subparagraph (D) of paragraph (2) and inserting ‘Transportation.’;

        (D) by striking subparagraph (E) of paragraph (2);

        (E) by striking paragraph (3) and inserting the following:

      ‘(3) NO FEDERAL OFFICER OR EMPLOYEE- No member appointed under paragraph (2)(C) may serve as an officer or employee of the United States Government while serving as a member of the Council.’;

        (F) by striking subparagraphs (C), (D), (H), and (I) of paragraph (6) and redesignating subparagraphs (E), (F), (G), (J), (K), and (L) as subparagraphs (C), (D), (E), (F), (G), and (H), respectively; and

        (G) by striking paragraphs (7) and (8).

      (2) Section 106(s) (as redesignated by subsection (a) of this section) is amended--

        (A) by striking ‘Air Traffic Services Subcommittee of the Aviation Management Advisory Council.’ and inserting ‘Air Traffic Services Committee.’ in paragraphs (1)(A) and (2)(A); and

        (B) by striking ‘Air Traffic Services Subcommittee of the Aviation Management Advisory Council,’ and inserting ‘Air Traffic Services Committee,’ in paragraph (3).

      (3) Section 106 is amended by adding at the end the following:

    ‘(t) AIR TRAFFIC CONTROL SYSTEM DEFINED- In this section, the term ‘air traffic control system’ has the meaning such term has under section 40102(a).’.

    (c) TRANSITION FROM AIR TRAFFIC SERVICE SUBCOMMITTEE TO AIR TRAFFIC SERVICE COMMITTEE-

      (1) TERMINATION OF MANAGEMENT ADVISORY COUNCIL MEMBERSHIP- Effective on the day after the date of enactment of this Act, any member of the Management Advisory Council appointed under section 106(p)(2)(E) of title 49, United States Code, (as such section was in effect on the day before such date of enactment) who is a member of the Council on such date of enactment shall cease to be a member of the Council.

      (2) COMMENCEMENT OF MEMBERSHIP ON AIR TRAFFIC SERVICES COMMITTEE- Effective on the day after the date of enactment of this Act, any member of the Management Advisory Council whose membership is terminated by paragraph (1) shall become a member of the Air Traffic Services Committee as provided by section 106(q)(2)(G) of title 49, United States Code, to serve for the remainder of the term to which that member was appointed to the Council.

SEC. 107. CLARIFICATION OF RESPONSIBILITIES OF CHIEF OPERATING OFFICER.

    Section 106(s) (as redesignated by section 106(a)(1) of this Act) is amended--

      (1) by striking ‘Transportation and Congress’ in paragraph (4) and inserting ‘Transportation, the Committee on Transportation and Infrastructure of the House of Representatives, and the Committee on Commerce, Science, and Transportation of the Senate,’;

      (2) by striking ‘develop a strategic plan of the Administration for the air traffic control system, including the establishment of--’ in paragraph (5)(A) and inserting ‘implement the strategic plan of the Administration for the air traffic control system in order to further--’;

      (3) by striking ‘To review the operational functions of the Administration,’ in paragraph (5)(B) and inserting ‘To oversee the day-to-day operational functions of the Administration for air traffic control,’;

      (4) by striking ‘system prepared by the Administrator;’ in paragraph (5)(C)(i) and inserting ‘system;’;

      (5) by striking ‘Administrator and the Secretary of Transportation;’ in paragraph (5)(C)(ii) and inserting ‘Administrator;’; and

      (6) by striking paragraph (5)(C)(iii) and inserting the following:

          ‘(iii) ensure that the budget request supports the agency’s annual and long-range strategic plans for air traffic control services.’.

TITLE II--AIRPORT DEVELOPMENT

SEC. 201. NATIONAL CAPACITY PROJECTS.

    (a) IN GENERAL- Part B of subtitle VII is amended by adding at the end the following:

‘CHAPTER 477. NATIONAL CAPACITY PROJECTS

‘47701. Capacity enhancement.

‘47702. Designation of national capacity projects.

‘47703. Expedited coordinated environmental review process; project coordinators and environment impact teams.

‘47704. Compatible land use initiative for national capacity projects.

‘47705. Air traffic procedures at national capacity projects.

‘47706. Pilot program for environmental review at national capacity projects.

‘47707. Definitions.

‘Sec. 47701. Capacity enhancement

    ‘(a) IN GENERAL- Within 30 days after the date of enactment of the Aviation Investment and Revitalization Vision Act, the Secretary of Transportation shall identify those airports among the 31 airports covered by the Federal Aviation Administration’s Airport Capacity Benchmark Report 2001 with delays that significantly affect the national air transportation system.

    ‘(b) Task Force; Capacity Enhancement Study-

      ‘(1) IN GENERAL- The Secretary shall direct any airport identified by the Secretary under subsection (a) that is not engaged in a runway expansion process and has not initiated a capacity enhancement study (or similar capacity assessment) since 1996--

        ‘(A) to establish a delay reduction task force to study means of increasing capacity at the airport, including air traffic, airline scheduling, and airfield expansion alternatives; or

        ‘(B) to conduct a capacity enhancement study.

      ‘(2) SCOPE- The scope of the study shall be determined by the airport and the Federal Aviation Administration, and where appropriate shall consider regional capacity solutions.

      ‘(3) Recommendations submitted to secretary-

        ‘(A) TASK FORCE- A task force established under this subsection shall submit a report containing its findings and conclusions, together with any recommendations for capacity enhancement at the airport, to the Secretary within 9 months after the task force is established.

        ‘(B) CES- A capacity enhancement study conducted under this subsection shall be submitted, together with its findings and conclusions, to the Secretary as soon as the study is completed.

    ‘(c) RUNWAY EXPANSION AND RECONFIGURATION- If the report or study submitted under subsection (b)(3) includes a recommendation for the construction or reconfiguration of runways at the airport, then the Secretary and the airport shall complete the planning and environmental review process within 5 years after report or study is submitted to the Secretary. The Secretary may extend the 5-year deadline under this subsection for up to 1 year if the Secretary determines that such an extension is necessary and in the public interest. The Secretary shall notify the Senate Committee on Commerce, Science, and Transportation, and to the House of Representatives Committee on Transportation and Infrastructure of any such extension.

    ‘(d) Airports That Decline To Undertake Expansion Projects-

      ‘(1) IN GENERAL- If an airport at which the construction or reconfiguration of runways is recommended does not take action to initiate a planning and environmental assessment process for the construction or reconfiguration of those runways within 30 days after the date on which the report or study is submitted to the Secretary, then--

        ‘(A) the airport shall be ineligible for planning and other expansion funds under subchapter I of chapter 471, notwithstanding any provision of that subchapter to the contrary; and

        ‘(B) no passenger facility fee may be approved at that airport during the 5-year period beginning 30 days after the date on which the report or study is submitted to the Secretary, for--

          ‘(i) projects that, but for subparagraph (A), could have been funded under chapter 471; or

          ‘(ii) any project other than on-airport airfield-side capacity or safety-related projects.

      ‘(2) SAFETY-RELATED AND ENVIRONMENTAL PROJECTS EXCEPTED- Paragraph (1) does not apply to the use of funds for safety-related, security, or environment projects.

    ‘(e) AIRPORTS THAT TAKE ACTION- The Secretary shall take all actions possible to expedite funding and provide options for funding to any airport undertaking runway construction or reconfiguration projects in response to recommendations by its task force.

‘Sec. 47702. Designation of national capacity projects

    ‘(a) IN GENERAL- In response to a petition from an airport sponsor, or in the case of an airport on the list of airports covered by the Federal Aviation Administration’s Airport Capacity Benchmarks study, the Secretary of Transportation may designate an airport development project as a national capacity project if the Secretary determines that the project to be designated will significantly enhance the capacity of the national air transportation system.

    ‘(b) Designation To Remain in Effect for 5 Years- The designation of a project as a national capacity project under paragraph (1) shall remain in effect for 5 years. The Secretary may extend the 5-year period for up to 2 additional years upon request if the Secretary finds that substantial progress is being made toward completion of the project.

‘Sec. 47703. Expedited coordinated environmental review process; project coordinators and environment impact teams

    ‘(a) IN GENERAL- The Secretary of Transportation shall implement an expedited coordinated environmental review process for national capacity projects that--

      ‘(1) provides for better coordination among the Federal, regional, State, and local agencies concerned with the preparation of environmental impact statements or environmental assessments under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.);

      ‘(2) provides for an expedited and coordinated process in the conduct of environmental reviews that ensures that, where appropriate, the reviews are done concurrently and not consecutively; and

      ‘(3) provides for a date certain for completing all environmental reviews.

    ‘(b) HIGH PRIORITY FOR AIRPORT ENVIRONMENTAL REVIEWS- Each department and agency of the United States Government with jurisdiction over environmental reviews shall accord any such review involving a national capacity project the highest possible priority and conduct the review expeditiously. If the Secretary finds that any such department or agency is not complying with the requirements of this subsection, the Secretary shall notify the Senate Committee on Commerce, Science, and Transportation, and to the House of Representatives Committee on Transportation and Infrastructure immediately.

    ‘(c) Project Coordinators; EIS Teams-

      ‘(1) DESIGNATION- For each project designated by the Secretary as a national capacity project under subsection (a) for which an environmental impact statement or environmental assessment must be filed, the Secretary shall--

        ‘(A) designate a project coordinator within the Department of Transportation; and

        ‘(B) establish an environmental impact team within the Department.

      ‘(2) FUNCTION- The project coordinator and the environmental impact team shall--

        ‘(A) coordinate the activities of all Federal, State, and local agencies involved in the project;

        ‘(B) to the extent possible, working with Federal, State and local officials, reduce and eliminate duplicative and overlapping Federal, State, and local permit requirements;

        ‘(C) to the extent possible, eliminate duplicate Federal, State, and local environmental review procedures; and

        ‘(D) provide direction for compliance with all applicable Federal, State, and local environmental requirements for the project.

‘Sec. 47704. Compatible land use initiative for national capacity projects

    ‘(a) IN GENERAL- The Secretary of Transportation may make grants under chapter 471 to States and units of local government for land use compatibility plans directly related to national capacity projects for the purposes of making the use of land areas around the airport compatible with aircraft operations if the land use plan or project meets the requirements of this section.

    ‘(b) CONDITIONS- A land use plan or project meets the requirements of this section if it--

      ‘(1) is sponsored by the public agency that has the authority to plan and adopt land use control measures, including zoning, in the planning area in and around the airport and that agency provides written assurances to the Secretary that it will work with the affected airport to identify and adopt such measures;

      ‘(2) does not duplicate, and is not inconsistent with, an airport noise compatibility program prepared by an airport owner or operator under chapter 475 or with other planning carried out by the airport;

      ‘(3) is subject to an agreement between the public agency sponsor and the airport owner or operator that the development of the land use compatibility plan will be done cooperatively;

      ‘(4) is consistent with the airport operation and planning, including the use of any noise exposure contours on which the land use compatibility planning or project is based; and

      ‘(5) has been approved jointly by the airport owner or operator and the public agency sponsor.

    ‘(c) ASSURANCES FROM SPONSORS- The Secretary may require the airport sponsor, public agency, or other entity to which a grant may be awarded under this section to provide such additional assurances, progress reports, and other information as the Secretary determines to be necessary to carry out this section.

‘Sec. 47705. Air traffic procedures at national capacity projects

    ‘(a) IN GENERAL- The Secretary of Transportation may consider prescribing flight procedures to avoid or minimize potentially significant adverse noise impacts of the project during the environmental planning process for a national capacity project that involves the construction of new runways or the reconfiguration of existing runways. If the Secretary determines that noise mitigation flight procedures are consistent with safe and efficient use of the navigable airspace, then, at the request of the airport sponsor, the Administrator may, in a manner consistent with applicable Federal law, commit to prescribing such procedures in any record of decision approving the project.

    ‘(b) MODIFICATION- Notwithstanding any commitment by the Secretary under subsection (a), the Secretary may initiate changes to such procedures if necessary to maintain safety and efficiency in light of new information or changed circumstances.

‘Sec. 47706. Pilot program for environmental review at national capacity projects

    ‘(a) IN GENERAL- The Secretary of Transportation shall initiate a 5-year pilot program funded by airport sponsors--

      ‘(1) to hire additional fulltime-equivalent environmental specialists and attorneys, or

      ‘(2) to obtain the services of such specialists and attorneys from outside the United States Government, to assist in the provision of an appropriate nationwide level of staffing for planning and environmental review of runway development projects for national capacity projects at the Federal Aviation Administration.

    ‘(b) ELIGIBLE PARTICIPANTS- Participation in the pilot program shall be available, on a voluntary basis, to airports with an annual passenger enplanement of not less than 3 million passengers. The Secretary shall specify the minimum contribution necessary to qualify for participation in the pilot program, which shall be not less than the amount necessary to compensate the Department of Transportation for the expense of a fulltime equivalent environmental specialist and attorney qualified at the GS-14 equivalent level.

    ‘(c) RETENTION OF REVENUES- The salaries and expenses account of the Federal Aviation Administration shall retain as an offsetting collection such sums as may be necessary from such proceeds for the costs of developing and implementing the program required by subsection (a). Such offsetting collections shall be available for obligation subject to the terms and conditions of the receiving appropriations account, and shall be deposited in such accounts on a quarterly basis. Such offsetting collections are authorized to remain available until expended for such purpose.

‘Sec. 47707. Definitions

    ‘In this chapter:

      ‘(1) NATIONAL CAPACITY PROJECT- The term ‘national capacity project’ means a project designated by the Secretary under section 44702.

      ‘(2) OTHER TERMS- The definitions in section 47102 apply to any terms used in this chapter that are defined in that section.’.

    (b) ADDITIONAL STAFF AUTHORIZED- The Secretary of Transportation is authorized to hire additional environmental specialists and attorneys needed to process environmental impact statements in connection with airport construction projects and to serve as project coordinators and environmental impact team members under section 47703 of title 49, United States Code.

    (c) CLERICAL AMENDMENT- The analysis for subtitle VII is amended by inserting after the item relating to section 475 the following:

‘477. National capacity projects

--47701’.

SEC. 202. CATEGORICAL EXCLUSIONS.

    Not later than 30 days after the date of enactment of this Act, the Secretary of Transportation shall report to the Senate Committee on Commerce, Science, and Transportation on the categorical exclusions currently recognized and provide a list of proposed additional categorical exclusions from the requirement that an environmental assessment or an environmental impact statement be prepared under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) for projects at airports. In determining the list of additional proposed categorical exclusions, the Secretary shall include such other projects as the Secretary determines should be categorically excluded in order to ensure that Department of Transportation environmental staff resources are not diverted to lower priority tasks and are available to expedite the environmental reviews of airport capacity enhancement projects at congested airports.

SEC. 203. ALTERNATIVES ANALYSIS.

    (a) NOTICE REQUIREMENT- Not later than 30 days after the date on which the Secretary of Transportation identifies an airport capacity enhancement project at a congested airport under section 47171(c) of title 49, United States Code, the Secretary shall publish a notice in the Federal Register requesting comments on whether reasonable alternatives exist to the project.

    (b) CERTAIN REASONABLE ALTERNATIVES DEFINED- For purposes of this section, an alternative shall be considered reasonable if--

      (1) the alternative does not create an unreasonable burden on interstate commerce, the national aviation system, or the navigable airspace;

      (2) the alternative is not inconsistent with maintaining the safe and efficient use of the navigable airspace;

      (3) the alternative does not conflict with a law or regulation of the United States;

      (4) the alternative would result in at least the same reduction in congestion at the airport or in the national aviation system as the proposed project; and

      (5) in any case in which the alternative is a proposed construction project at an airport other than a congested airport, firm commitments to provide such alternate airport capacity exists, and the Secretary determines that such alternate airport capacity will be available no later than 4 years after the date of the Secretary’s determination under this section.

    (c) COMMENT PERIOD- The Secretary shall provide a period of 60 days for comments on a project identified by the Secretary under this section after the date of publication of notice with respect to the project.

    (d) DETERMINATION OF EXISTENCE OF REASONABLE ALTERNATIVES- Not later than 90 days after the last day of a comment period established under subsection (c) for a project, the Secretary shall determine whether reasonable alternatives exist to the project. The determination shall be binding on all persons, including Federal and State agencies, acting under or applying Federal laws when considering the availability of alternatives to the project.

    (e) LIMITATION ON APPLICABILITY- This section does not apply to--

      (1) any alternatives analysis required under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.); or

      (2) a project at an airport if the airport sponsor requests, in writing, to the Secretary that this section not apply to the project.

SEC. 204. INCREASE IN APPORTIONMENT FOR, AND FLEXIBILITY OF, NOISE COMPATIBILITY PLANNING PROGRAMS.

    Section 47117(e)(1)(A) is amended--

      (1) by striking the first sentence and inserting: ‘At least 35 percent for grants for airport noise compatibility planning under section 47505(a)(2) for a national capacity project, for carrying out noise compatibility programs under section 47504(c) of this title, and for noise mitigation projects approved in an environmental record of decision for an airport development project designated as a national capacity project under section 47702.’; and

      (2) by striking ‘or not such 34 percent requirement’ in the second sentence and inserting ‘the funding level required by the preceding sentence’.

SEC. 205. SECRETARY OF TRANSPORTATION TO IDENTIFY AIRPORT CONGESTION-RELIEF PROJECTS AND FORECAST AIRPORT OPERATIONS ANNUALLY.

    (a) Identification of Projects-

      (1) IN GENERAL- Within 90 days after the date of enactment of this Act, the Secretary of Transportation shall provide--

        (A) a list of planned air traffic and airport-capacity projects at congested Airport Capacity Benchmark airports the completion of which will substantially relieve congestion at those airports; and

        (B) a list of options for expanding capacity at the 8 airports on the list at which the most severe delays are occurring, to the Senate Committee on Commerce, Science, and Transportation, and to the House of Representatives Committee on Transportation and Infrastructure. The Secretary shall provide updated lists to those Committees 2 years after the date of enactment of this Act.

      (2) DELISTING OF PROJECTS- The Secretary shall remove a project from the list provided to the Committees under paragraph (1) upon the request, in writing, of an airport operator if the operator states in the request that construction of the project will not be completed within 10 years from the date of the request.

SEC. 206. DESIGN-BUILD CONTRACTING.

    (a) IN GENERAL- Subchapter I of chapter 471 is amended by adding at the end the following:

‘ 47138. Design-build contracting

    ‘(a) IN GENERAL- The Administrator may approve an application of an airport sponsor under this section to authorize the airport sponsor to award a design-build contract using a selection process permitted under applicable State or local law if--

      ‘(1) the Administrator approves the application using criteria established by the Administrator;

      ‘(2) the design-build contract is in a form that is approved by the Administrator;

      ‘(3) the Administrator is satisfied that the contract will be executed pursuant to competitive procedures and contains a schematic design adequate for the Administrator to approve the grant;

      ‘(4) use of a design-build contract will be cost effective and expedite the project;

      ‘(5) the Administrator is satisfied that there will be no conflict of interest; and

      ‘(6) the Administrator is satisfied that the selection process will be as open, fair, and objective as the competitive bid system and that at least three or more bids will be submitted for each project under the selection process.

    ‘(b) REIMBURSEMENT OF COSTS- The Administrator may reimburse an airport sponsor for design and construction costs incurred before a grant is made pursuant to this section if the project is approved by the Administrator in advance and is carried out in accordance with all administrative and statutory requirements that would have been applicable under this chapter 471, if the project were carried out after a grant agreement had been executed.

    ‘(c) DESIGN-BUILD CONTRACT DEFINED- In this section, the term ‘design-build contract’ means an agreement that provides for both design and construction of a project by a contractor.’.

    (b) CONFORMING AMENDMENT- The chapter analysis for chapter 471 is amended by inserting after the item relating to section 47137 the following:

      ‘47138. Design-build contracting.’.

SEC. 207. SPECIAL RULE FOR AIRPORT IN ILLINOIS.

    (a) IN GENERAL- Nothing in this title shall be construed to preclude the application of any provision of this Act to the State of Illinois or any other sponsor of a new airport proposed to be constructed in the State of Illinois.

    (b) AUTHORITY OF THE GOVERNOR- Nothing in this title shall be construed to preempt the authority of the Governor of the State of Illinois as of August 1, 2001, to approve or disapprove airport development projects.

SEC. 208. ELIMINATION OF DUPLICATIVE REQUIREMENTS.

    (a) IN GENERAL- Section 47106(c)(1) is amended--

      (1) by inserting ‘and’ after ‘project;’ in subparagraph (A)(ii);

      (2) by striking subparagraph (B); and

      (3) by redesignating subparagraph (C) as subparagraph (B).

    (b) CONFORMING AMENDMENTS- Section 47106(c) of such title is amended--

      (1) by striking paragraph (4);

      (2) by redesignating paragraph (5) as paragraph (4); and

      (3) by striking ‘(1)(C)’ in paragraph (4), as redesignated, and inserting ‘(1)(B)’.

SEC. 209. STREAMLINING THE PASSENGER FACILITY FEE PROGRAM.

    Section 40117 is amended--

      (1) by striking from ‘finds--’ in paragraph (4) of subsection (b) through the end of that paragraph and inserting ‘finds that the project cannot be paid for from funds reasonably expected to be available for the programs referred to in section 48103.’;

      (2) by adding at the end of subsection (c)(2) the following:

        ‘(E) The agency will include in its application or notice submitted under subsection (1) copies of all certifications of agreement or disagreement received under subparagraph (D).

        ‘(F) For the purpose of this section, an eligible agency providing notice and consultation to an air carrier and foreign air carrier is deemed to have satisfied this requirement if it limits such notices and consultations to air carriers and foreign air carriers that have a significant business interest on the airport. In developing regulations to implement this provision, the Secretary shall consider a significant business interest to be defined as an air carrier or foreign air carrier that has no less than 1.0 percent of boardings at the airport in the prior calendar year, except that no air carrier or foreign air carrier may be considered excluded under this section if it has at least 25,000 boardings at the airport in the prior calendar year, or if it operates scheduled service, without regard to such percentage requirements.’;

      (3) by redesignating paragraph (3) of subsection (c) as paragraph (4) and inserting after paragraph (2) the following:

      ‘(3) Before submitting an application, the eligible agency must provide reasonable notice and an opportunity for public comment. The Secretary shall prescribe regulations that define reasonable notice and provide for at least--

        ‘(A) a requirement that the eligible agency provide public notice of intent to collect a passenger facility fee so as to inform those interested persons and agencies who may be affected, including--

          ‘(i) publication in local newspapers of general circulation;

          ‘(ii) publication in other local media; and

          ‘(iii) posting the notice on the agency’s website;

        ‘(B) a requirement for submission of public comments no sooner than 30 days after publishing of the notice and not later than 45 days after publication; and

        ‘(C) a requirement that the agency include in its application or notice submitted under paragraph (1) copies of all comments received under subparagraph (B).’;

      (4) by striking ‘shall’ in the first sentence of paragraph (4), as redesignated, of subsection (c) and inserting ‘may’; and

      (5) by adding at the end the following:

    ‘(l) Pilot Program for Passenger Facility Fee Authorizations at Small Airports-

      ‘(1) There is established a pilot program for the Secretary to test alternative procedures for authorizing small airports to impose passenger facility fees. An eligible agency may impose a passenger facility fee at a non-hub airport (as defined in section 47102 of this title) that it controls for use on eligible airport-related projects at that airport, in accordance with the provisions of this subsection. These procedures shall be in lieu of the procedures otherwise specified in this section.

      ‘(2) The eligible agency must provide reasonable notice and an opportunity for consultation to air carriers and foreign air carriers in accordance with subsection (c)(2), and must provide reasonable notice and opportunity for public comment in accordance with subsection (c)(3).

      ‘(3) The eligible agency must submit to the Secretary a notice of intention to impose a passenger facility fee, which notice shall include--

        ‘(A) information that the Secretary may require by regulation on each project for which authority to impose a passenger facility charge is sought;

        ‘(B) the amount of revenue from passenger facility charges that is proposed to be collected for each project; and

        ‘(C) the level of the passenger facility charge that is proposed.

      ‘(4) The Secretary shall acknowledge receipt of the notice and indicate any objection to the imposition of a passenger facility fee for any project identified in the notice within 30 days after receipt of the eligible agency’s notice.

      ‘(5) Unless the Secretary objects within 30 days after receipt of the eligible agency’s notice, the eligible agency is authorized to impose a passenger facility fee in accordance with the terms of its notice.

      ‘(6) Not later than 180 days after the date of enactment of this subsection, the Secretary shall propose such regulations as may be necessary to carry out this subsection.

      ‘(7) The authority granted under this subsection shall expire three years after the issuance of the regulation required by paragraph (6).

      ‘(8) An acknowledgement issued under paragraph (4) shall not be considered an order of the Secretary issued under section 46110 of this title.’.

SEC. 210. QUARTERLY STATUS REPORTS.

    Beginning with the second calendar quarter ending after the date of enactment of this Act, the Secretary of Transportation shall provide quarterly status reports to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Transportation and Infrastructure on the status of construction of each major runway project undertaken at the largest 40 commercial airports in terms of annual enplanements.

SEC. 211. NOISE DISCLOSURE REQUIREMENTS.

    (a) DEFINITIONS- Section 47501 is amended by adding at the end--

      ‘(3) ‘Federal agency’ means any department, agency, corporation, or other establishment or instrumentality of the executive branch of the Federal Government, and includes the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation.

      ‘(4) ‘Federal entity for lending regulation’ means the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Comptroller of the Currency, the Office of Thrift Supervision, the National Credit Union Administration, and the Farm Credit Administration, and with respect to a particular regulated lending institution means the entity primarily responsible for the supervision of the institution.

      ‘(5) ‘Federal agency lender’ means a Federal agency that makes direct loans secured by improved real estate or a mobile home, to the extent such agency acts in such capacity.

      ‘(6) ‘residential real estate’ means real estate upon which a residential dwelling is located.

      ‘(7) ‘noise exposure map’ means a noise exposure map that complies with section 47503 of this title and part 150 of title 14, Code of Federal Regulations.

      ‘(8) ‘regulated lending institution’ means any bank, savings and loan association, credit union, farm credit bank, Federal land bank association, production credit association, or similar institution subject to the supervision of a Federal entity for lending regulation.’.

    (b) NOISE EXPOSURE MAPS- Section 47503(b) is amended to read as follows:

    ‘(b) REVISED MAPS- If, in an area surrounding an airport, a change in the operation of the airport would establish a substantial new noncompatible use, or would significantly reduce noise over existing noncompatible uses, beyond the forecast year, the airport operator shall submit a revised noise exposure map to the Secretary showing the new noncompatible use or noise reduction.’.

    (c) NOTIFICATION OF NOISE EXPOSURE- Chapter 457 is amended by adding at the end the following:

‘Sec. 47511. Notification of noise exposure

    ‘(a) NOISE EXPOSURE MAP- An airport operator shall make available to lending institutions, upon request, the most recent noise exposure map submitted under section 47503 of this title.

    ‘(b) LIST OF AIRPORTS- The Secretary shall maintain a list of airports for which the airport operators have submitted a noise exposure map under section 47503 of this title.

    ‘(c) REGULATED LENDING INSTITUTIONS- Each Federal entity for lending regulation (after consultation and coordination with the Federal Financial Institutions Examination Council) shall direct by regulation that a regulated lending institution may not make, increase, extend or renew any loan secured by residential real estate or a mobile home that is located or to be located in the vicinity of an airport on the Secretary’s list described in subsection (b), unless the loan applicant’s purchase agreement for the residential real estate or mobile home provides notice to the purchaser (or satisfactory assurances are provided that the seller has provided written notice to the purchaser prior to the purchaser’s signing of the purchase agreement) that the property is within the area of the noise contours on a noise exposure map submitted under section 47503 of this chapter. The notice to the purchaser shall be acknowledged by the purchaser’s signing of the purchase agreement or other notification document and the regulated lending institution shall retain a record of the receipt of the notice by the purchaser.

    ‘(d) FEDERAL AGENCY LENDERS- Each Federal agency lender shall by regulation require notification in the manner provided in subsection (c) with respect to any loan that is made by the Federal agency lender and secured by residential real estate or a mobile home located or to be located in the vicinity of an airport on the Secretary’s list described in subsection (b).

    ‘(e) CONTENTS OF NOTICE- The notice required under this section shall disclose--

      ‘(1) that the property is located within the noise contours depicted on the most recent noise exposure map submitted by the airport operator according to section 47503 of this chapter, and is subject to aircraft noise exposure; and

      ‘(2) the name and telephone number of the airport where the purchaser may obtain more information on the aircraft noise exposure.’.

SEC. 212. PROHIBITION ON REQUIRING AIRPORTS TO PROVIDE RENT-FREE SPACE FOR FAA OR TSA.

    (a) IN GENERAL- Chapter 401 is amended by adding at the end the following:

‘ 40129. Prohibition on rent-free space requirements for FAA or TSA

    ‘(a) IN GENERAL- Neither the Secretary of Transportation nor the Secretary of Homeland Security may require airport sponsors to provide building construction, maintenance, utilities and expenses, or space in airport sponsor-owned buildings to the Federal Aviation Administration or the Transportation Security Administration without cost for services relating to air traffic control, air navigation, aviation security, or weather reporting.

    ‘(b) NEGOTIATED AGREEMENTS- Subsection (a) does not prohibit--

      ‘(1) the negotiation of agreements between either Secretary and an airport sponsor to provide building construction, maintenance, utilities and expenses, or space in airport sponsor-owned buildings to the Federal Aviation Administration or the Transportation Security Administration without cost or at below-market rates; or

      ‘(2) either Secretary from requiring airport sponsors to provide land without cost to the Federal Aviation Administration for air traffic control facilities or space without cost to the Transportation Security Administration for necessary security checkpoints.’.

    (b) CONFORMING AMENDMENT- The chapter analysis for chapter 401 is amended by adding at the end the following:

      ‘40129. Prohibition on rent-free space requirements for FAA or TSA.’.

SEC. 213. SPECIAL RULES FOR FISCAL YEAR 2004.

    (a) Apportionment to Certain Airports With Declining Boardings-

      (1) IN GENERAL- For fiscal year 2004, the Secretary of Transportation may apportion funds under section 47114 of title 49, United States Code, to the sponsor of an airport described in paragraph (2) in an amount equal to the amount apportioned to that airport under that section for fiscal year 2002, notwithstanding any provision of section 47114 to the contrary.

      (2) AIRPORTS TO WHICH PARAGRAPH (1) APPLIES- Paragraph (1) applies to any airport determined by the Secretary to have had--

        (A) less than 0.05 percent of the total United States passenger boardings (as defined in section 47102(10) of title 49, United States Code) for the calendar year used for determining apportionments under section 47114 for fiscal year 2004;

        (B) less than 10,000 passenger boardings in calendar year 2002; and

        (C) 10,000 or more passenger boardings in calendar year 2000.

    (b) TEMPORARY INCREASE IN GOVERNMENT SHARE OF CERTAIN AIP PROJECT COSTS- Notwithstanding section 47109(a) of title 49, United States Code, the Government’s share of allowable project costs for a grant made in fiscal year 2004 under chapter 471 of that title for a project described in paragraph (2) or (3) of that section shall be 95 percent.

SEC. 214. AGREEMENTS FOR OPERATION OF AIRPORT FACILITIES.

    Section 47124 is amended--

      (1) by inserting ‘a qualified entity or’ after ‘with’ in subsection (a);

      (2) by inserting ‘entity or ’ after ‘allow the’ in subsection (a);

      (3) by inserting ‘entity or’ before ‘State’ the last place it appears in subsection (a);

      (4) by striking ‘contract,’ in subsection (b)(2) and inserting ‘contract with a qualified entity, or’;

      (5) by striking ‘the State’ each place it appears in subsection (b)(2) and inserting ‘the entity or State’;

      (6) by striking ‘PILOT’ in the caption of subsection (b)(3);

      (7) by striking ‘pilot’ in subsection (b)(3)(A);

      (8) by striking ‘pilot’ in subsection (b)(3)(D);

      (9) by striking ‘$6,000,000 per fiscal year’ in subsection (b)(3)(E) and inserting ‘$6,500,000 for fiscal 2004, $7,000,000 for fiscal year 2005, and $7,500,000 for fiscal year 2006’; and

      (10) by striking ‘$1,100,000.’ in subsection (b)(4)(C) and inserting ‘$1,500,000.’.

SEC. 215. PUBLIC AGENCIES.

    Section 47102(15) is amended--

      (1) by striking ‘or’ after the semicolon in subparagraph (B);

      (2) by redesignating subparagraph (C) as subparagraph (D); and

      (3) by inserting after subparagraph (B) the following:

        ‘(C) the Department of the Interior with respect to an airport owned by the Department that is required to be maintained for commercial aviation safety at a remote location; or’.

SEC. 216. FLEXIBLE FUNDING FOR NONPRIMARY AIRPORT APPORTIONMENTS.

    (a) IN GENERAL- Section 47117(c)(2) is amended to read as follows:

      ‘(2) WAIVER- A sponsor of an airport may make an agreement with the Secretary of Transportation waiving the sponsor’s claim to any part of the amount apportioned for the airport under sections 47114(c) and 47114(d)(2)(A) of this title if the 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.’.

    (b) CONFORMING AMENDMENTS-

      (1) Section 47108(a) is amended by inserting ‘or section 47114(d)(2)(A)’ after ‘under section 47114(c)’.

      (2) Section 47110 is amended--

        (A) by inserting ‘or section 47114(d)(2)(A)’ in subsection (b)(2)(C) after ‘of section 47114(c)’;

        (B) by inserting ‘or section 47114(d)(2)(A)’ in subsection (g) after ‘of section 47114(c)’;

        (C) by striking ‘of project.’ in subsection (g) and inserting ‘of the project.’; and

        (D) by adding at the end the following:

    ‘(h) NONPRIMARY AIRPORTS- The Secretary may decide that the costs of revenue producing aeronautical support facilities, including fuel farms and hangars, are allowable for an airport development project at a nonprimary airport and for which the Government’s share is paid only with funds apportioned to a sponsor under section 47114(d)(2)(A), if the Secretary determines that the sponsor has made adequate provision for financing airside needs of the airport.’.

      (3) Section 47119(b) is amended by--

        (A) striking ‘or’ after the semicolon in paragraph (3);

        (B) striking ‘1970.’ in paragraph (4) and inserting ‘1970; or’; and

        (C) adding at the end the following:

      ‘(5) to a sponsor of a nonprimary airport referred to in subparagraph (A) or (B) paragraph (2), any part of amounts apportioned to the sponsor for the fiscal year under section 47114(d)(3)(A) of this title for project costs allowable under section 47110(d) of this title.’.

    (c) APPORTIONMENT FOR ALL-CARGO AIRPORTS- Section 47114(c)(2)(A) is amended by striking ‘3’ and inserting ‘3.5’.

    (d) CONSIDERATIONS FOR CARGO OPERATIONS- Section 47115(d) is amended--

      (1) by striking ‘and’ at the end of paragraph (5);

      (2) by striking the period at the end of paragraph (6) and inserting ‘; and’; and

      (3) by adding at the end the following new paragraph:

      ‘(7) the ability of the project to foster United States competitiveness in securing global air cargo activity at a United States airport.’.

TITLE III--AIRLINE SERVICE DEVELOPMENT

Subtitle A--Program Enhancements

SEC. 301. DELAY REDUCTION MEETINGS.

    (a) IN GENERAL- Subchapter I of chapter 417 is amended by adding at the end the following new section:

‘Sec. 41723. Delay reduction actions

    ‘(a) DELAY REDUCTION MEETINGS-

      ‘(1) SCHEDULING REDUCTION MEETINGS- The Secretary of Transportation may request that air carriers meet with the Administrator of the Federal Aviation Administration to discuss flight reductions at severely congested airports to reduce overscheduling and flight delays during hours of peak operation if--

        ‘(A) the Administrator of the Federal Aviation Administration determines that it is necessary to convene such a meeting; and

        ‘(B) the Secretary determines that the meeting is necessary to meet a serious transportation need or achieve an important public benefit.

      ‘(2) MEETING CONDITIONS- Any meeting under paragraph (1)--

        ‘(A) shall be chaired by the Administrator;

        ‘(B) shall be open to all scheduled air carriers; and

        ‘(C) shall be limited to discussions involving the airports and time periods described in the Administrator’s determination.

      ‘(3) FLIGHT REDUCTION TARGETS- Before any such meeting is held, the Administrator shall establish flight reduction targets for the meeting and notify the attending air carriers of those targets not less than 48 hours before the meeting.

      ‘(4) DELAY REDUCTION OFFERS- An air carrier attending the meeting shall make any delay reduction offer to the Administrator rather than to another carrier.

      ‘(5) TRANSCRIPT- The Administrator shall ensure that a transcript of the meeting is kept and made available to the public not later than 3 business days after the conclusion of the meeting.

    ‘(b) Stormy Weather Agreements Limited Exemption-

      ‘(1) IN GENERAL- The Secretary may establish a program to authorize by order discussions and agreements between 2 or more air carriers for the purpose of reducing flight delays during periods of inclement weather.

      ‘(2) REQUIREMENTS- An authorization issued under paragraph (1)--

        ‘(A) may only be issued by the Secretary after a determination by the Federal Aviation Administration that inclement weather is likely to adversely and directly affect capacity at an airport for a period of at least 3 hours;

        ‘(B) shall apply only to discussions and agreements concerning flights directly affected by the inclement weather; and

        ‘(C) shall remain in effect for a period of 24 hours.

      ‘(3) PROCEDURE- The Secretary shall establish procedures within 30 days after such date of enactment for--

        ‘(A) filing requests for an authorization under paragraph (1);

        ‘(B) participation under paragraph (5) by representatives of the Department of Transportation in any meetings or discussions held pursuant to such an order; and

        ‘(C) the determination by the Federal Aviation Administration about the impact of inclement weather.

      ‘(4) COPY OF PARTICIPATION REQUEST FILED WITH SECRETARY- Before an air carrier may request an order under paragraph (1), it shall file a request with the Secretary, in such form and manner as the Secretary may prescribe, to participate in the program established under paragraph (1).

      ‘(5) DOT PARTICIPATION- The Secretary shall ensure that the Department is represented at any meetings authorized under this subsection.

    ‘(c) EXEMPTION AUTHORIZED- When the Secretary finds that it is required by the public interest, the Secretary, as part of an order issued under subsection (b)(1), shall exempt a person affected by the order from the antitrust laws to the extent necessary to allow the person to proceed with the activities approved in the order.

    ‘(d) ANTITRUST LAWS DEFINED- In this section, the term ‘antitrust laws’ has the meaning given that term in the first section of the Clayton Act (15 U.S.C. 12).

    ‘(e) SUNSET- The authority of the Secretary to issue an order under subsection (b)(1) of this section expires at the end of the 2-year period that begins 45 days after the date of enactment of the Aviation Investment and Revitalization Vision Act. The Secretary may extend the 2-year Period for an additional 2 years if the Secretary determines that such an extension is necessary and in the public interest. The Secretary shall notify the Senate Committee on Commerce, Science, and Transportation, and to the House of Representatives Committee on Transportation and Infrastructure of any such extension.’.

    (b) CONFORMING AMENDMENT- The chapter analysis for chapter 417 is amended by inserting after the item relating to section 41722 the following new item:

      ‘41723. Delay reduction actions.’.

SEC. 302. SMALL COMMUNITY AIR SERVICE DEVELOPMENT PILOT PROGRAM.

    (a) 3-Year Extension- Section 41743(e)(2) is amended--

      (1) by striking ‘There is’ and inserting ‘There are’;

      (2) by striking ‘2001 and’ and inserting ‘2001,’; and

      (3) by striking ‘2003’ and inserting ‘2003, and $27,500,000 for each of fiscal years 2004, 2005, and 2006’.

    (b) ADDITIONAL COMMUNITIES- Section 41743(c)(4) of such title is amended by striking ‘program.’ and inserting‘program each year. No community, consortia of communities, or combination thereof may participate in the program twice.’.

SEC. 303. DOT STUDY OF COMPETITION AND ACCESS PROBLEMS AT LARGE AND MEDIUM HUB AIRPORTS.

    (a) IN GENERAL- The Secretary of Transportation shall study competition and airline access problems at hub airports (as defined in section 41731(a)(3)) of title 49, United States Code, and medium hub airports (as defined in section 41714(h)(9) of that title). In the study, the Secretary shall examine, among other matters--

      (1) gate usage and availability; and

      (2) the effects of the pricing of gates and other facilities on competition and access.

    (b) REPORT- The Secretary shall transmit a report of the Secretary’s findings and conclusions together with any recommendations, including legislative recommendations, the Secretary may have for improving competition and airline access at such airports to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Transportation and Infrastructure within 6 months after the date of enactment of this Act.

SEC. 304. COMPETITION DISCLOSURE REQUIREMENT FOR LARGE AND MEDIUM HUB AIRPORTS.

    Section 47107 is amended by adding at the end the following:

    ‘(q) COMPETITION DISCLOSURE REQUIREMENT-

      ‘(1) IN GENERAL- The Secretary of Transportation may approve an application under this subchapter for an airport development project grant for a hub airport or a medium hub airport only if the Secretary receives assurances that the airport sponsor will provide the information required by paragraph (2) at such time and in such form as the Secretary may require.

      ‘(2) COMPETITIVE ACCESS- If an airport denies an application by an air carrier to receive access to gates or other facilities at that airport in order to provide service to the airport or to expand service at the airport, then, within 30 days after denying the request, the airport sponsor shall--

        ‘(A) notify the Secretary of the denial; and

        ‘(B) transmit a report to the Secretary that--

          ‘(i) describes the request;

          ‘(ii) explains the reasons for the denial; and

          ‘(iii) provides a time frame within which, if any, the airport will be able to accommodate the request.

      ‘(3) DEFINITIONS- In this subsection:

        ‘(A) HUB AIRPORT- The term ‘hub airport’ has the meaning given that term by section 41731(a)(3).

        ‘(B) MEDIUM HUB AIRPORT- The term ‘medium hub airport’ has the meaning given that term by section 41714(h)(9).’.

Subtitle B--Small Community and Rural Air Service Revitalization

SEC. 351. REAUTHORIZATION OF ESSENTIAL AIR SERVICE PROGRAM.

    Section 41742(a) of title 49, United States Code, is amended to read as follows:

    ‘(a) IN GENERAL- There are authorized to be appropriated to the Secretary of Transportation to carry out the essential air service under this subchapter, $113,000,000 for each of fiscal years 2004 through 2007, $50,000,000 of which for each such year shall be derived from amounts received by the Federal Aviation Administration credited to the account established under section 45303 of this title or otherwise provided to the Administration.’.

SEC. 352. INCENTIVE PROGRAM.

    (a) IN GENERAL- Chapter 417 of title 49, United States Code, is amended by adding at the end the following:

‘SUBCHAPTER IV--MARKETING INCENTIVE PROGRAM

‘Sec. 41781. Purpose.

‘Sec. 41782. Marketing program.

‘Sec. 41783. State marketing assistance.

‘Sec. 41784. Definitions.

‘Sec. 41785. Authorization of appropriations.

‘ 41781. Purposes

    ‘The purposes of this subchapter are--

      ‘(1) to enable essential air service communities to increase boardings and the level of passenger usage of airport facilities at an eligible place by providing technical, financial, and other marketing assistance to such communities and to States;

      ‘(2) to reduce subsidy costs under subchapter II of this chapter as a consequence of such increased usage; and

      ‘(3) to provide such communities with opportunities to obtain, retain, and improve transportation services.

‘ 41782. Marketing program

    ‘(a) IN GENERAL- The Secretary of Transportation shall establish a marketing incentive program for eligible essential air service communities receiving assistance under subchapter II under which the airport sponsor in such a community may receive a grant of not more than $50,000 to develop and implement a marketing plan to increase passenger boardings and the level of passenger usage of its airport facilities.

    ‘(b) MATCHING REQUIREMENT; SUCCESS BONUSES--

      ‘(1) IN GENERAL- Except as provided in paragraphs (2) and (3), not less than 25 percent of the publicly financed costs associated with the marketing plan shall come from non-Federal sources. For purposes of this paragraph--

        ‘(A) the non-Federal portion of the publicly financed costs may be derived from contributions in kind; and

        ‘(B) State or local matching contributions may not be derived, directly or indirectly, from Federal funds, but the use by a state or local government of proceeds from the sale of bonds to provide the matching contribution is not considered to be a contribution derived directly or indirectly from Federal funds, without regard to the Federal income tax treatment of interest paid on those bonds or the Federal income tax treatment of those bonds.

      ‘(2) Bonus for 25-percent increase in usage- Except as provided in paragraph (3), if, after any 12-month period during which a marketing plan has been in effect, the Secretary determines that the marketing plan has increased average monthly boardings, or the level of passenger usage, at the airport facilities at the eligible place, by 25 percent or more, then only 10 percent of the publicly financed costs associated with the marketing plan shall be required to come from non-Federal sources for the following 12-month period.

      ‘(3) Bonus for 50-percent increase in usage- If, after any 12-month period during which a marketing plan has been in effect, the Secretary determines that the marketing plan has increased average monthly boardings, or the level of passenger usage, at the airport facilities at the eligible place, by 50 percent or more, then no portion of the publicly financed costs associated with the marketing plan shall be required to come from non-Federal sources for the following 12-month period.

‘ 41783. State marketing assistance

    ‘The Secretary of Transportation may provide up to $50,000 in technical assistance to any State within which an eligible essential air service community is located for the purpose of assisting the State and such communities to develop methods to increase boardings in such communities. At least 10 percent of the costs of the activity with which the assistance is associated shall come from non-Federal sources, including contributions in kind.

‘ 41784. Definitions

    ‘In this subchapter:

      ‘(1) ELIGIBLE PLACE- The term ‘eligible place’ has the meaning given that term in section 41731(a)(1).

      ‘(2) ELIGIBLE ESSENTIAL AIR SERVICE COMMUNITY- The term ‘eligible essential air service community’ means an eligible place that--

        ‘(A) submits an application to the Secretary in such form, at such time, and containing such information as the Secretary may require, including a detailed marketing plan, or specifications for the development of such a plan, to increase average boardings, or the level of passenger usage, at its airport facilities; and

        ‘(B) provides assurances, satisfactory to the Secretary, that it is able to meet the non-Federal funding requirements of section 41782(b)(1).

      ‘(3) PASSENGER BOARDINGS- The term ‘passenger boardings’ has the meaning given that term by section 47102(10).

      ‘(4) SPONSOR- The term ‘sponsor’ has the meaning given that term in section 47102(19).

‘ 41785. Authorization of appropriations

    ‘There are authorized to be appropriated to the Secretary of Transportation $12,000,000 for each of fiscal years 2004 through 2007, not more than $200,000 per year of which may be used for administrative costs.’.

    (b) CONFORMING AMENDMENT- The chapter analysis for chapter 417 of such title is amended by inserting after the item relating to section 41767 the following:

‘SUBCHAPTER IV--MARKETING INCENTIVE PROGRAM

‘41781. Purpose.

‘41782. Marketing program.

‘41783. State marketing assistance.

‘41784. Definitions.

‘41785. Authorization of appropriations.’.

SEC. 353. PILOT PROGRAMS.

    (a) IN GENERAL- Subchapter II of chapter 417 of title 49, United States Code, is amended by adding at the end the following:

‘41745. Other pilot programs

    ‘(a) IN GENERAL- If the entire amount authorized to be appropriated to the Secretary of Transportation by section 41785 is appropriated for fiscal years 2004 through 2007, the Secretary of Transportation shall establish pilot programs that meet the requirements of this section for improving service to communities receiving essential air service assistance under this subchapter or consortia of such communities.

    ‘(b) Programs Authorized-

      ‘(1) COMMUNITY FLEXIBILITY- The Secretary shall establish a pilot program for not more than 10 communities or consortia of communities under which the airport sponsor of an airport serving the community or consortium may elect to forego any essential air service assistance under preceding sections of this subchapter for a 10-year period in exchange for a grant from the Secretary equal in value to twice the annual essential air service assistance received for the most recently ended calendar year. Under the program, and notwithstanding any provision of law to the contrary, the Secretary shall make a grant to each participating sponsor for use by the recipient for any project that--

        ‘(A) is eligible for assistance under chapter 471;

        ‘(B) is located on the airport property; or

        ‘(C) will improve airport facilities in a way that would make such facilities more usable for general aviation.

      ‘(2) Equipment changes-

        ‘(A) IN GENERAL- The Secretary shall establish a pilot program for not more than 10 communities or consortia of communities under which, upon receiving a petition from the sponsor of the airport serving the community or consortium, the Secretary shall authorize and request the essential air service provider for that community or consortium to use smaller equipment to provide the service and to consider increasing the frequency of service using such smaller equipment. Before granting any such petition, the Secretary shall determine that passenger safety would not be compromised by the use of such smaller equipment.

        ‘(B) ALTERNATIVE SERVICES- For any 3 aiport sponsors participating in the program established under subparagraph (A), the Secretary may establish a pilot program under which--

          ‘(i) the Secretary provides 100 percent Federal funding for reasonable levels of alternative transportation services from the eligible place to the nearest hub airport or small hub airport;

          ‘(ii) the Secretary will authorize the sponsor to use its essential air service subsidy funds provided under preceding sections of this subchapter for any airport-related project that would improve airport facilities; and

          ‘(iii) the sponsor may make an irrevocable election to terminate its participation in the pilot program established under this paragraph after 1 year.

      ‘(3) COST-SHARING- The Secretary shall establish a pilot program under which the sponsors of airports serving a community or consortium of communities share the cost of providing air transportation service greater than the basic essential air service provided under this subchapter.

      ‘(4) EAS local participation program-

        ‘(A) IN GENERAL- The Secretary of Transportation shall establish a pilot program under which designated essential air service communities located in proximity to hub airports are required to assume 10 percent of their essential air service subsidy costs for a 3-year period.

        ‘(B) Designation of communities-

          ‘(i) IN GENERAL- The Secretary may not designate any community under this paragraph unless it is located within 100 miles by road of a hub airport and is not located in a noncontiguous State. In making the designation, the Secretary may take into consideration the total traveltime between a community and the nearest hub airport, taking into account terrain, traffic, weather, road conditions, and other relevant factors.

          ‘(ii) ONE COMMUNITY PER STATE- The Secretary may not designate--

            ‘(I) more than 1 community per State under this paragraph; or

            ‘(II) a community in a State in which another community that is eligible to participate in the essential air service program has elected not to participate in the essential air service program.

        ‘(C) APPEAL OF DESIGNATION- A community may appeal its designation under this section. The Secretary may withdraw the designation of a community under this paragraph based on--

          ‘(i) the airport sponsor’s ability to pay; or

          ‘(ii) the relative lack of financial resources in a community, based on a comparison of the median income of the community with other communities in the State.

        ‘(D) NON-FEDERAL SHARE-

          ‘(i) NON-FEDERAL AMOUNTS- For purposes of this section, the non-Federal portion of the essential air service subsidy may be derived from contributions in kind, or through reduction in the amount of the essential air service subsidy through reduction of air carrier costs, increased ridership, pre-purchase of tickets, or other means. The Secretary shall provide assistance to designated communities in identifying potential means of reducing the amount of the subsidy without adversely affecting air transportation service to the community.

          ‘(ii) APPLICATION WITH OTHER MATCHING REQUIREMENTS- This section shall apply to the Federal share of essential air service provided this subchapter, after the application of any other non-Federal share matching requirements imposed by law.

        ‘(E) ELIGIBILITY FOR OTHER PROGRAMS NOT AFFECTED- Nothing in this paragraph affects the eligibility of a community or consortium of communities, an airport sponsor, or any other person to participate in any program authorized by this subchapter. A community designated under this paragraph may participate in any program (including pilot programs) authorized by this subchapter for which it is otherwise eligible--

          ‘(i) without regard to any limitation on the number of communities that may participate in that program; and

          ‘(ii) without reducing the number of other communities that may participate in that program.

        ‘(F) SECRETARY TO REPORT TO CONGRESS ON IMPACT- The Secretary shall transmit a report to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Transportation and Infrastructure on--

          ‘(i) the economic condition of communities designated under this paragraph before their designation;

          ‘(ii) the impact of designation under this paragraph on such communities at the end of each of the 3 years following their designation; and

          ‘(iii) the impact of designation on air traffic patterns affecting air transportation to and from communities designated under this paragraph.

    ‘(c) CODE-SHARING- Under the pilot program established under subsection (a), the Secretary is authorized to require air carriers providing service to participating communities and major air carriers (as defined in section 41716(a)(2)) serving large hub airports (as defined in section 41731(a)(3)) to participate in multiple code-share arrangements consistent with normal industry practice whenever and wherever the Secretary determines that such multiple code-sharing arrangements would improve air transportation services. The Secretary may not require air carriers to participate in such arrangements under this subsection for more than 10 such communities.

    ‘(d) TRACK SERVICE- The Secretary shall require essential air service providers to track changes in service, including on-time arrivals and departures.

    ‘(e) ADMINISTRATIVE PROVISIONS- In order to participate in a pilot program established under this section, the airport sponsor for a community or consortium of communities shall submit an application to the Secretary in such form, at such time, and containing such information as the Secretary may require.’.

    (b) CONFORMING AMENDMENT- The chapter analysis for chapter 417 of such title is amended by inserting after the item relating to section 41744 the following:

      ‘41745. Other pilot programs.’.

SEC. 354. EAS PROGRAM AUTHORITY CHANGES.

    (a) RATE RENEGOTIATION- If the Secretary of Transportation determines that essential air service providers are experiencing significantly increased costs of providing service under subchapter II of chapter 417 of title 49, United States Code, the Secretary of Transportation may increase the rates of compensation payable under that subchapter within 30 days after the date of enactment of this Act without regard to any agreements or requirements relating to the renegotiation of contracts. For purposes of this subsection, the term ‘significantly increased costs’ means an average monthly cost increase of 10 percent or more.

    (b) RETURNED FUNDS- Notwithstanding any provision of law to the contrary, any funds made available under subchapter II of chapter 417 of title 49, United States Code, that are returned to the Secretary by an airport sponsor because of decreased subsidy needs for essential air service under that subchapter shall remain available to the Secretary and may be used by the Secretary under that subchapter to increase the frequency of flights at that airport.

    (c) SMALL COMMUNITY AIR SERVICE DEVELOPMENT PILOT PROGRAM- Section 41743(h) of such title is amended by striking ‘an airport’ and inserting ‘each airport’.

TITLE IV--AVIATION SECURITY

SEC. 401. STUDY OF EFFECTIVENESS OF TRANSPORTATION SECURITY SYSTEM.

    (a) IN GENERAL- The Secretary of Homeland Security shall study the effectiveness of the aviation security system, including the air marshal program, hardening of cockpit doors, and security screening of passengers, checked baggage, and cargo.

    (b) REPORT- The Secretary shall transmit a report of the Secretary’s findings and conclusions together with any recommendations, including legislative recommendations, the Secretary may have for improving the effectiveness of aviation security to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Transportation and Infrastructure within 6 months after the date of enactment of this Act. In the report the Secretary shall also describe any redeployment of Transportation Security Administration resources based on those findings and conclusions. The Secretary may submit the report to the Committees in classified and redacted form.

SEC. 402. AVIATION SECURITY CAPITAL FUND.

    (a) IN GENERAL- There is established within the Department of Transportation a fund to be known as the Aviation Security Capital Fund. The first $500,000,000 derived from fees received under section 44940(a)(1) of title 49, United States Code, in each of fiscal years 2004, 2005, and 2006 shall be available to the Fund. The Under Secretary of Homeland Security for Border and Transportation Security shall impose the fee authorized by section 44940(a)(1) of such title so as to collect at least $500,000,000 in each of fiscal years 2004, 2005, and 2006 for deposit into the fund. Amounts in the fund shall be allocated in such a manner that--

      (1) 40 percent shall be made available for hub airports;

      (2) 20 percent shall be made available for medium hub airports;

      (3) 15 percent shall be made available for small hub airports and non-hub airports; and

      (4) 25 percent shall be distributed by the Secretary on the basis of aviation security risks.

    (b) PURPOSE- Amounts in the Fund shall be available to the Secretary of Transportation, after consultation with the Under Secretary of Homeland Security for Border and Transportation Security to provide financial assistance to airport sponsors to defray capital investment in transportation security at airport facilities in accordance with the provisions of this section. The program shall be administered in concert with the airport improvement program under chapter 417 of title 49, United States Code.

    (c) APPORTIONMENT- Amounts made available under subsection (a)(1), (a)(2), or (a)(3) shall be apportioned among the airports in each category in accordance with a formula based on the ratio that passenger emplanements at each airport in the category bears to the total passenger emplanements at all airports in the that category.

    (d) MATCHING REQUIREMENTS-

      (1) IN GENERAL- Not less than the following percentage of the costs of any project funded under this section shall be derived from non-Federal sources:

        (A) For hub airports and medium hub airports, 25 percent.

        (B) For airports other than hub airports and medium hub airports, 10 percent.

      (2) USE OF BOND PROCEEDS- In determining the amount of non-Federal sources of funds, the proceeds of State and local bond issues shall not be considered to be derived, directly or indirectly, from Federal sources without regard to the Federal income tax treatment of interest and principal of such bonds.

    (e) LETTERS OF INTENT- The Secretary of Transportation, or his delegate, may execute letters of intent to commit funding to airport sponsors from the Fund.

    (f) CONFORMING AMENDMENTS-

      (1) USE OF PASSENGER FEE FUNDS- Section 44940(a)(1) is amended by adding at the end the following:

        ‘(H) The costs of security-related capital improvements at airports.’.

      (2) LIMITATION ON COLLECTION- Section 44940(d)(4) is amended by striking ‘Act.’ and inserting ‘Act or in section 402(a) of the Aviation Investment and Revitalization Vision Act.’.

    (g) DEFINITIONS- Any term used in this section that is defined or used in chapter 417 of title 49 United States Code has the meaning given that term in that chapter.

SEC. 403. TECHNICAL AMENDMENTS RELATED TO SECURITY-RELATED AIRPORT DEVELOPMENT.

    (a) DEFINITION OF AIRPORT DEVELOPMENT- Section 47102(3)(B) is amended--

      (1) by inserting ‘and’ after the semicolon in clause (viii);

      (2) by striking ‘circular; and’ in clause (ix) and inserting ‘circular.’; and

      (3) by striking clause (x).

    (b) IMPROVEMENT OF FACILITIES AND EQUIPMENT- Section 301(a) of the Federal Aviation Reauthorization Act of 1996 (49 U.S.C. 44901 note) is amended by striking ‘travel.’ and inserting ‘travel if the improvements or equipment will be owned and operated by the airport.’.

SEC. 404. ARMED FORCES CHARTERS.

    Section 132 of the Aviation and Transportation Security Act (49 U.S.C. 44903 note) is amended by adding at the end the following:

    ‘(c) Exemption for Armed Forces Charters-

      ‘(1) IN GENERAL- Subsections (a) and (b) of this section, and chapter 449 of title 49, United States Code, do not apply to passengers and property carried by aircraft when employed to provide charter transportation to members of the armed forces.

      ‘(2) IN GENERAL- The Secretary of Defense, in consultation with the Secretary of Homeland Security and the Secretary of Transportation, shall establish security procedures relating to the operation of aircraft when employed to provide charter transportation to members of the armed forces to or from an airport described in section 44903(c) of title 49, United States Code.

      ‘(3) ARMED FORCES DEFINED- In this subsection, the term ‘armed forces’ has the meaning given that term by section 101(a)(4) of title 10, United States Code.’.

TITLE V--MISCELLANEOUS

SEC. 501. EXTENSION OF WAR RISK INSURANCE AUTHORITY.

    (a) EXTENSION OF POLICIES- Section 44302(f)(1) is amended by striking ‘2004,’ each place it appears and inserting ‘2006,’.

    (b) EXTENSION OF LIABILITY LIMITATION- Section 44303(b) is amended by striking ‘2004,’ and inserting ‘2006,’.

    (c) EXTENSION OF AUTHORITY- Section 44310 is amended by striking ‘2004.’ and inserting ‘2006.’.

SEC. 502. COST-SHARING OF AIR TRAFFIC MODERNIZATION PROJECTS.

    (a) IN GENERAL- Chapter 445 is amended by adding at the end the following:

‘ 44517. Program to permit cost-sharing of air traffic modernization projects

    ‘(a) IN GENERAL- Subject to the requirements of this section, the Secretary may carry out a program under which the Secretary may make grants to project sponsors for not more than 10 eligible projects per fiscal year for the purpose of improving aviation safety and enhancing mobility of the Nation’s air transportation system by encouraging non-Federal investment in critical air traffic control facilities and equipment.

    ‘(b) FEDERAL SHARE- The Federal share of the cost of an eligible project carried out under the program shall not exceed 33 percent. The non-Federal share of the cost of an eligible project shall be provided from non-Federal sources, including revenues collected pursuant to section 40117 of this title.

    ‘(c) LIMITATION ON GRANT AMOUNTS- No eligible project may receive more than $5,000,000 in Federal funds under the program.

    ‘(d) FUNDING- The Secretary shall use amounts appropriated under section 48101(a) of this title to carry out this program.

    ‘(e) DEFINITIONS- In this section:

      ‘(1) ELIGIBLE PROJECT- The term ‘eligible project’ means a project relating to the Nation’s air traffic control system that is certified or approved by the Administrator and that promotes safety, efficiency, or mobility. Such projects may include--

        ‘(A) airport-specific air traffic facilities and equipment, including local area augmentation systems, instrument landing systems, weather and wind shear detection equipment, lighting improvements, and control towers;

        ‘(B) automation tools to effect improvements in airport capacity, including passive final approach spacing tools and traffic management advisory equipment; and

        ‘(C) facilities and equipment that enhance airspace control procedures, including consolidation of terminal radar control facilities and equipment, or assist in en route surveillance, including oceanic and offshore flight tracking.

      ‘(2) PROJECT SPONSOR- The term ‘project sponsor’ means any major user of the National Airspace System, as determined by the Secretary, including a public-use airport or a joint venture between a public-use airport and one or more air carriers.

    ‘(f) TRANSFERS OF EQUIPMENT- Notwithstanding any other provision of law, and upon agreement by the Administrator of the Federal Aviation Administration, project sponsors may transfer, without consideration, to the Federal Aviation Administration, facilities, equipment, or automation tools, the purchase of which was assisted by a grant made under this section, if such facilities, equipment or tools meet Federal Aviation Administration operation and maintenance criteria.

    ‘(g) GUIDELINES- The Administrator shall issue advisory guidelines on the implementation of the program, which shall not be subject to administrative rulemaking requirements under subchapter II of chapter 5 of title 5.’.

    (b) CONFORMING AMENDMENT- The chapter analyses for chapter 445 is amended by adding at the end the following:

      ‘44517. Program to permit cost-sharing of air traffic modernization projects.’.

SEC. 503. COUNTERFEIT OR FRAUDULENTLY REPRESENTED PARTS VIOLATIONS.

    Section 44726(a)(1) is amended--

      (1) by striking ‘or’ after the semicolon in subparagraph (A);

      (2) by redesignating subparagraph (B) as subparagraph (D);

      (3) by inserting after subparagraph (A) the following:

        ‘(B) who knowingly, and with intent to defraud, carried out or facilitated an activity punishable under a law described in subparagraph (A);

        ‘(C) whose certificate is revoked under subsection (b) of this section; or’; and

      (4) by striking ‘convicted of such a violation.’ in subparagraph (D), as redesignated, and inserting ‘described in subparagraph (A), (B) or (C).’.

SEC. 504. CLARIFICATIONS TO PROCUREMENT AUTHORITY.

    (a) Update and Clarification of Authority-

      (1) Section 40110(c) is amended to read as follows:

    ‘(c) DUTIES AND POWERS- When carrying out subsection (a) of this section, the Administrator of the Federal Aviation Administration may--

      ‘(1) notwithstanding section 1341(a)(1) of title 31, lease an interest in property for not more than 20 years;

      ‘(2) consider the reasonable probable future use of the underlying land in making an award for a condemnation of an interest in airspace; and

      ‘(3) dispose of property under subsection (a)(2) of this section, except for airport and airway property and technical equipment used for the special purposes of the Administration, only under sections 121, 123, and 126 and chapter 5 of title 40.’.

      (2) Section 40110(d)(1) is amended by striking ‘implement, not later than January 1, 1996,’ and inserting ‘implement’.

    (b) CLARIFICATION- Section 106(f)(2)(A)(ii) is amended by striking ‘property’ and inserting ‘property, services,’.

SEC. 505. JUDICIAL REVIEW.

    Section 46110(c) is amended by adding at the end the following: ‘Except as otherwise provided in this subtitle, judicial review of an order issued, in whole or in part, pursuant to this part, part B of this subtitle , or subsection (l) or (s) of section 114 of this title, shall be in accordance with the provisions of this section.’.

SEC. 506. CIVIL PENALTIES.

    (a) INCREASE IN MAXIMUM CIVIL PENALTY- Section 46301(a) is amended--

      (1) by striking ‘$1,000’ in paragraph (1) and inserting ‘$25,000’;

      (2) by striking ‘or’ the last time it appears in paragraph (1)(A);

      (3) by striking ‘section )’ in paragraph (1)(A), and inserting ‘section), or section 47133’;

      (4) by striking paragraphs (2), (3), (6), and (7) and redesignating paragraphs (4), (5), and (8) as paragraphs (2), (3), and (4), respectively; and

      (5) by striking ‘paragraphs (1) and (2)’ in paragraph (4), as redesignated, and inserting ‘paragraph (1)’.

    (b) INCREASE IN LIMIT ON ADMINISTRATIVE AUTHORITY AND CIVIL PENALTY- Section 46301(d) is amended--

      (1) by striking ‘$50,000;’ in paragraph (4)(A) by inserting ‘$50,000, if the violation occurred before the date of enactment of the Aviation Authorization Act of 2003, or $1,000,000, if the violation occurred on or after that date;’; and

      (2) by striking ‘$50,000.’ in paragraph (8) and inserting ‘$50,000, if the violation occurred before the date of enactment of the Aviation Authorization Act of 2003, or $1,000,000, if the violation occurred on or after that date.’.

SEC. 507. MISCELLANEOUS AMENDMENTS.

    (a) Amounts Subject to Apportionment Under Chapter 471-

      (1) IN GENERAL- Section 47102 is amended--

        (A) by striking paragraph (6) and inserting the following:

      ‘(6) ‘amount newly made available’ means the amount newly made available under section 48103 of this title as an authorization for grant obligations for a fiscal year, as that amount may be limited in that year by a provision in an appropriations Act, but as determined without regard to grant obligation recoveries made in that year or amounts covered by section 47107(f).’; and

        (B) by redesignating paragraphs (7) through (20) as paragraphs (8) through (21), and inserting after paragraph (6) the following:

      ‘(7) ‘amount subject to apportionment’ means the amount newly made available, less the amount made available for the fiscal year for administrative expenses under section 48105.’.

      (2) CONFORMING AMENDMENTS-

        (A) Section 41742(b) is amended by striking ‘Notwithstanding section 47114(g) of this title, any’ and inserting ‘Any’.

        (B) Section 47104(b) is amended to read as follows:

    ‘(b) INCURRING OBLIGATIONS- The Secretary may incur obligations to make grants from the amount subject to apportionment as soon as the apportionments required by sections 47114(c) and (d)(2) of this title have been issued.’.

        (C) Section 47107(f)(3) is amended by striking ‘made available to the Secretary under section 48103 of this title and’ and inserting ‘subject to apportionment, and is’.

        (D) Section 47114 is amended--

          (i) by striking subsection (a);

          (ii) by striking ‘apportionment for that fiscal year’ in subsection (b) and inserting ‘apportionment’;

          (iii) by striking ‘total amount made available under section 48103’ in subsections (c)(2)(C), (d)(3), and (e)(4) and inserting ‘amount subject to apportionment’;

          (iv) by striking ‘each fiscal year’ in subsection (c)(2)(A); and

          (v) by striking ‘for each fiscal year’ in subsection (d)(2).

        (E) Subsection 47116(b) is amended by striking ‘amounts are made available under section 48103 of this title’ and inserting ‘an amount is subject to apportionment’.

        (F) Section 47117 is amended--

          (i) by striking ‘amounts are made available under section 48103 of this title.’ in subsection (a) and inserting ‘an amount is subject to apportionment.’;

          (ii) by striking ‘a sufficient amount is made available under section 48103.’ in subsection (f)(2)(A) and inserting ‘there is a sufficient amount subject to apportionment.’;

          (iii) in subsection (f)(2)(B), by inserting ‘in’ before ‘the succeeding’;

          (iv) by striking ‘NEWLY AVAILABLE’ in the caption of subsection (f)(3) and inserting ‘Restored’;

          (v) by striking ‘newly available under section 48103 of this title,’ in subsection (f)(3)(A) and inserting ‘subject to apportionment,’;

          (vi) by striking ‘made available under section 48103 for such obligations for such fiscal year.’ in subsection (f)(4) and inserting ‘subject to apportionment.’; and

          (vii) by striking ‘enacted after September 3, 1982,’ in subsection (g).

    (b) RECOVERED FUNDS- Section 47117 is amended by adding at the end the following:

    ‘(g) CREDITING OF RECOVERED FUNDS- For the purpose of determining compliance with a limitation on the amount of grant obligations that may be incurred in a fiscal year imposed by an appropriations Act, an amount that is recovered by canceling or reducing a grant obligation--

      ‘(1) shall be treated as a negative obligation that is to be netted against the gross obligation limitation, and

      ‘(2) may permit the gross limitation to be exceeded by an equal amount.’.

    (c) AIRPORT SAFETY DATA COLLECTION- Section 47130 is amended to read as follows:

‘Sec. 47130. Airport safety data collection

    ‘Notwithstanding any other provision of law, the Administrator of the Federal Aviation Administration may award a contract, using sole source or limited source authority, or enter into a cooperative agreement with, or provide a grant from amounts made available under section 48103 to, a private company or entity for the collection of airport safety data. If a grant is provided, the United States Government’s share of the cost of the data collection shall be 100 percent.’.

    (d) STATUTE OF LIMITATIONS- Section 47107(l)(5)(A) is amended by inserting ‘or any other governmental entity’ after ‘sponsor’.

    (e) AUDIT CERTIFICATION- Section 47107(m) is amended--

      (1) by striking ‘promulgate regulations that’ in paragraph (1) and inserting ‘include a provision in the compliance supplement provisions to’;

      (2) by striking ‘and opinion of the review’ in paragraph (1); and

      (3) by striking paragraph (3).

    (f) NOISE EXPOSURE MAPS- Section 47503(a) is amended by striking ‘1985,’ and inserting ‘a forecast year that is at least 5 years in the future,’.

    (g) CLARIFICATION OF APPLICABILITY OF PFCS TO MILITARY CHARTERS- Section 40117(e)(2) is amended--

      (1) by striking ‘and’ after the semicolon in subparagraph (D);

      (2) by striking ‘passengers.’ in subparagraph (E) and inserting ‘passengers; and’; and

      (3) by adding at the end the following:

      ‘(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 United States Department of Defense.’.

SEC. 508. LOW-EMISSION AIRPORT VEHICLES AND INFRASTRUCTURE.

    (a) PURPOSE- The purpose of this section is to permit the use of funds made available under subchapter 471 to encourage commercial service airports in air quality nonattainment and maintenance areas to undertake projects for gate electrification, acquisition or conversion of airport vehicles and airport-owned ground support equipment to acquire low-emission technology, low-emission technology fuel systems, and other related air quality projects on a voluntary basis to improve air quality and more aggressively address the constraints that emissions can impose on future aviation growth. Use of those funds is conditioned on airports receiving credits for emissions reductions that can be used to mitigate the air quality effects of future airport development. Making these projects eligible for funding in addition to those projects that are already eligible under section 47102(3)(F) is intended to support those projects that, at the time of execution, may not be required by the Clean Air Act (42 U.S.C. 7501 et seq.), but may be needed in the future.

    (b) ACTIVITIES ADDED TO DEFINITION OF ‘AIRPORT DEVELOPMENT’- Section 47102(3) is amended by adding at the end 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 service airport, if the airport is located in an air quality nonattainment or maintenance area (as defined in sections 171(2) and 175(A) of the Clean Air Act (42 U.S.C. 7501(2), 7505a) and if such project will result in an airport receiving appropriate emission credits, as described in section 47139 of this title. The Secretary, in consultation with the Administrator of the Environmental Protection Agency, shall issue guidance describing eligible low-emission modifications and improvements and stating how airport sponsors will demonstrate benefits.

        ‘(L) a project for the acquisition or conversion of vehicles and ground support equipment, owned by a commercial service airport, to low-emission technology, if the airport is located in an air quality nonattainment or maintenance area (as defined in sections 171(2) and 175(A) of the Clean Air Act (42 U.S.C. 7501(2), 7505a) and if such project will result in an airport receiving appropriate emission credits as described in section 47139 of this title. The Secretary, in consultation with the Administrator of the Environmental Protection Agency, shall issue guidance describing eligible low-emission vehicle technology and stating how airport sponsors will demonstrate benefits. For airport-owned vehicles and equipment, the acquisition of which are not otherwise eligible for assistance under this subchapter, the incremental cost of equipping such vehicles or equipment with low-emission technology shall be treated as eligible for assistance.’.

    (c) LOW-EMISSION TECHNOLOGY DEFINED- Section 47102 is amended by redesignating paragraphs (10) through (20), as paragraphs (11) through (21) respectively, and inserting after paragraph (9) the following:

      ‘(11) ‘low-emission technology’ means technology for new vehicles and equipment whose emission performance 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.’.

    (d) Emissions Credits-

      (1) IN GENERAL- Subchapter I of chapter 471, as amended by section 206 of this Act, is further amended by adding at the end the following:

‘Sec. 47139. Emission credits for air quality projects

    ‘(a) IN GENERAL- The Secretary and the Administrator of the Environmental Protection Agency shall jointly agree on how to assure that airport sponsors receive appropriate emission credits for projects described in sections 40117(a)(3)(G), 47102(3)(K), or 47102(3)(L) of this title. The agreement must, at a minimum, include provisions to ensure that--

      ‘(1) the credits will be consistent with the Clean Air Act (42 U.S.C. 7402 et seq.);

      ‘(2) credits generated by the emissions reductions in criteria pollutants are kept by the airport sponsor and may be used for purposes of any current or future general conformity determination or as offsets under the New Source Review program;

      ‘(3) there is national consistency in the way credits are calculated and are provided to airports;

      ‘(4) credits are provided to airport sponsors in a timely manner; and

      ‘(5) there is a method by which the Secretary can be assured that, for any specific 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), 47102(3)(L), or 47140 of this title, or as a condition for granting approval to collect or use a passenger facility fee for a project described in sections 40117(a)(3)(G), 47102(3)(K), 47102(3)(L), or 47140 of this title, the Secretary must receive assurance from the State in which the project is located, or from the Administrator of the Environmental Protection Agency where there is a Federal Implementation Plan, that the airport sponsor will receive appropriate emission credits in accordance with the conditions of this subsection.

      ‘(2) CREDITS FOR CERTAIN EXISTING PROJECTS- The Secretary and the Administrator of the Environmental Protection Agency shall jointly agree on how to provide emission credits to projects previously approved under section 47136 of this title during fiscal years 2001 through 2003, under terms consistent with this section.’.

      (2) CONFORMING AMENDMENT- The chapter analysis for chapter 471 is amended by inserting after the item relating to section 47138 the following:

      ‘47139. Emission credits for air quality projects.’.

    (e) AIRPORT GROUND SUPPORT EQUIPMENT EMISSIONS RETROFIT PILOT PROGRAM-

      (1) IN GENERAL- Subchapter I of chapter 471 is further amended by adding at the end the following:

‘Sec. 47140. 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 commercial service airports under which the sponsors of such airports may use an amount subject to apportionment to retrofit existing eligible airport ground support equipment which 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 or maintenance area (as defined in sections 171(2) and 175(A) of the Clean Air Act (42 U.S.C. 7501(2), 7505a)).

    ‘(c) SELECTION CRITERIA- In selecting applicants for participation in the pilot program, the Secretary 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 expended under the pilot program.

    ‘(d) MAXIMUM AMOUNT- Not more than $500,000 may be expended under the pilot program at any single commercial service airport.

    ‘(e) GUIDELINES- The Secretary, in consultation with the Administrator of the Environmental Protection Agency, shall establish guidelines regarding the types of retrofit projects eligible under this pilot program by considering remaining equipment useful life, amounts of emission reduction in relation to the cost of projects, and other factors necessary to carry out this section. The Secretary may give priority to ground support equipment owned by the airport and used for airport purposes.

    ‘(f) ELIGIBLE EQUIPMENT DEFINED- For purposes of this section, the term ‘eligible equipment’ means ground service or maintenance equipment that--

      ‘(1) is located at the airport;

      ‘(2) used to support aeronautical and related activities on the airport; and

      ‘(3) will remain in operation at the airport.’.

      (2) CONFORMING AMENDMENT- The chapter analysis for chapter 471 is further amended by inserting after the item relating to section 47139 the following:

      ‘47140. Airport ground support equipment emissions retrofit pilot program.’.

SEC. 509. LOW-EMISSION AIRPORT VEHICLES AND GROUND SUPPORT EQUIPMENT.

    Section 40117(a)(3) is amended by inserting at the end the following:

        ‘(G) A project for the acquisition or conversion of ground support equipment or airport-owned vehicles used at a commercial service airport with, or to, low-emission technology or cleaner burning conventional fuels, or the retrofitting of such equipment or vehicles that are powered by a diesel or gasoline engine with emission control technologies certified or verified by the Environmental Protection Agency to reduce emissions, if the airport is located in an air quality nonattainment or maintenance area (as defined in sections 171(2) and 175(A) of the Clean Air Act (42 U.S.C. 7501(2), 7505a), and if such project will result in an airport receiving appropriate emission credits as described in section 47139 of this title. The Secretary, in consultation with the Administrator of the Environmental Protection Agency, shall issue guidance for eligible projects and for how benefits must be demonstrated. The eligible cost is limited to the incremental amount that exceeds the cost of acquiring other vehicles or equipment that are not low-emission and would be used for the same purpose, or to the cost of low-emission retrofitting. For purposes of this paragraph, the term ‘ground support equipment’ means service and maintenance equipment used at an airport to support aeronautical operations and related activities.’.

SEC. 510. PACIFIC EMERGENCY DIVERSION AIRPORT.

    (a) IN GENERAL- The Secretary of Transportation shall enter into a memorandum of understanding with the Secretaries of Defense, the Interior, and Homeland Security to facilitate the sale of aircraft fuel on Midway Island, so that the revenue from the fuel sales can be used to operate Midway Island Airport in accordance with Federal Aviation Administration airport standards. The memorandum shall also address the long term potential for promoting tourism as a means of generating revenue to operate the airport.

    (b) NAVIGATIONAL AIDS- The Administrator of the Federal Aviation Administration may support and be responsible for maintaining all aviation-related navigational aids at Midway Island Airport.

SEC. 511. GULF OF MEXICO AVIATION SERVICE IMPROVEMENTS.

    (a) IN GENERAL- The Secretary of Transportation may develop and carry out a program designed to expand and improve the safety, efficiency, and security of--

      (1) air traffic control services provided to aviation in the Gulf of Mexico area; and

      (2) aviation-related navigational, low altitude communications and surveillance, and weather services in that area.

    (b) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the Secretary of Transportation such sums as may be necessary to carry out this section for the 4 fiscal year period beginning with fiscal year 2004.

SEC. 512. AIR TRAFFIC CONTROL COLLEGIATE TRAINING INITIATIVE.

    The Secretary of Transportation may use, from funds available to the Secretary and not otherwise obligated or expended, such sums as may be necessary to carry out and expand the Air Traffic Control Collegiate Training Initiative.

SEC. 513. INCREASE IN CERTAIN SLOTS.

    (a) IN GENERAL- Section 41714(d)(1)(C) is amended by striking ‘2’ and inserting ‘3’.

    (b) BEYOND-PERIMETER EXEMPTIONS- Section 41718(a) of title 49, United States Code, is amended by striking ‘12’ and inserting ‘24’.

SEC. 514. AIR TRANSPORTATION OVERSIGHT SYSTEM PLAN.

    (a) IN GENERAL- Within 90 days after the date of enactment of this Act, the Administrator of the Federal Aviation Administration shall transmit to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Transportation and Infrastructure an action plan, with an implementation schedule--

      (1) to provide adequate oversight of repair stations (known as Part 145 repair stations) and ensure that Administration-approved repair stations outside the United States are subject to the same level of oversight and quality control as those located in the United States; and

      (2) for addressing problems with the Air Transportation Oversight System that have been identified in reports by the Comptroller General and the Inspector General of the Department of Transportation.

    (b) PLAN REQUIREMENTS- The plan transmitted by the Administrator under subsection (a)(2) shall set forth the action the Administration will take under the plan--

      (1) to develop specific, clear, and meaningful inspection checklists for the use of Administration aviation safety inspectors and analysts;

      (2) to provide adequate training to Administration aviation safety inspectors in system safety concepts, risk analysis, and auditing;

      (3) to ensure that aviation safety inspectors with the necessary qualifications and experience are physically located where they can satisfy the most important needs;

      (4) to establish strong national leadership for the Air Transportation Oversight System and to ensure that the System is implemented consistently across Administration field offices; and

      (5) to extend the Air Transportation Oversight System beyond the 10 largest air carriers, so it governs oversight of smaller air carriers as well.

SEC. 515. NATIONAL SMALL COMMUNITY AIR SERVICE DEVELOPMENT OMBUDSMAN.

    (a) IN GENERAL- Subchapter II of chapter 417, as amended by section 353 of this Act, is amended by adding at the end the following:

‘Sec. 41746. National Small Community Air Service Development Ombudsman

    ‘(a) ESTABLISHMENT- There is established in the Department of Transportation the position of National Small Community Air Service Ombudsman (in this section referred to as the ‘Ombudsman’). The Secretary of Transportation shall appoint the Ombudsman. The Ombudsman shall report to the Secretary.

    ‘(b) PURPOSE- The Ombudsman, in consultation with officials from small communities in the United States, State aviation agencies, and State and local economic development agencies, shall develop strategies for retaining and enhancing the air service provided to small communities in the United States.

    ‘(c) OUTREACH- The Ombudsman shall solicit and receive comments from small communities regarding strategies for retaining and enhancing air service, and shall act as a liaison between the communities and Federal agencies for the purpose of developing such strategies.’

    (b) CONFORMING AMENDMENT- The chapter analysis for chapter 417 is amended by inserting after the item relating to section 47145 the following:

      ‘47146. National small community air service development ombudsman.’.

SEC. 516. NATIONAL COMMISSION ON SMALL COMMUNITY AIR SERVICE.

    (a) ESTABLISHMENT- There is established a commission to be known as the ‘National Commission on Small Community Air Service’ (in this section referred to as the ‘Commission’).

    (b) MEMBERSHIP-

      (1) COMPOSITION- The Commission shall be composed of 9 members of whom--

        (A) 3 members shall be appointed by the Secretary;

        (B) 2 members shall be appointed by the Majority Leader of the Senate;

        (C) 1 member shall be appointed by the Minority Leader of the Senate;

        (D) 2 members shall be appointed by the Speaker of the House of Representatives; and

        (E) 1 member shall be appointed by the Minority Leader of the House of Representatives.

      (2) QUALIFICATIONS- Of the members appointed by the Secretary under paragraph (1)(A)--

        (A) 1 member shall be a representative of a regional airline;

        (B) 1 member shall be a representative of an FAA-designated small-hub airport; and

        (C) 1 member shall be a representative of a State aviation agency.

      (3) TERMS- Members shall be appointed for the life of the Commission.

      (4) VACANCIES- A vacancy in the Commission shall be filled in the manner in which the original appointment was made.

      (5) TRAVEL EXPENSES- Members shall serve without pay but shall receive travel expenses, including per diem in lieu of subsistence, in accordance with subchapter I of chapter 57 of title 5, United States Code.

    (c) CHAIRPERSON- The member appointed by the Secretary under subsection (b)(2)(B) shall serve as the Chairperson of the Commission (in this section referred to as the ‘Chairperson’).

    (d) DUTIES-

      (1) STUDY- The Commission shall undertake a study of--

        (A) the challenges faced by small communities in the United States with respect to retaining and enhancing their scheduled commercial air service; and

        (B) whether the existing Federal programs charged with helping small communities are adequate for them to retain and enhance their existing air service.

      (2) ESSENTIAL AIR SERVICE COMMUNITIES- In conducting the study, the Commission shall pay particular attention to the state of scheduled commercial air service in communities currently served by the Essential Air Service program.

    (e) RECOMMENDATIONS- Based on the results of the study under subsection (d), the Commission shall make such recommendations as it considers necessary to--

      (1) improve the state of scheduled commercial air service at small communities in the United States, especially communities described in subsection (d)(2); and

      (2) improve the ability of small communities to retain and enhance their existing air service.

    (f) REPORT- Not later than 6 months after the date on which initial appointments of members to the Commission are completed, the Commission shall transmit to the President and Congress a report on the activities of the Commission, including recommendations made by the Commission under subsection (e).

    (g) COMMISSION PANELS- The Chairperson shall establish such panels consisting of members of the Commission as the Chairperson determines appropriate to carry out the functions of the Commission.

    (h) COMMISSION PERSONNEL MATTERS-

      (1) STAFF- The Commission may appoint and fix the pay of such personnel as it considers appropriate.

      (2) STAFF OF FEDERAL AGENCIES- Upon request of the Chairperson, the head of any department or agency of the United States may detail, on a reimbursable basis, any of the personnel of that department or agency to the Commission to assist it in carrying out its duties under this section.

      (3) OTHER STAFF AND SUPPORT- Upon the request of the Commission, or a panel of the Commission, the Secretary shall provide the Commission or panel with professional and administrative staff and other support, on a reimbursable basis, to assist the Commission or panel in carrying out its responsibilities.

    (i) OBTAINING OFFICIAL DATA- The Commission may secure directly from any department or agency of the United States information (other than information required by any statute of the United States to be kept confidential by such department or agency) necessary for the Commission to carry out its duties under this section. Upon request of the Chairperson, the head of that department or agency shall furnish such nonconfidential information to the Commission.

    (j) TERMINATION- The Commission shall terminate on the 30th day following the date of transmittal of the report under subsection (f).

    (k) APPLICABILITY OF THE FEDERAL ADVISORY COMMITTEE ACT- The Federal Advisory Committee Act (5 U.S.C. App.) shall not apply to the Commission.

SEC. 517. TRAINING CERTIFICATION FOR CABIN CREW.

    Section 44935 is amended by adding at the end the following:

    ‘(g) TRAINING STANDARDS FOR CABIN CREW-

      ‘(1) IN GENERAL- The Administrator shall establish standards for cabin crew training, consistent with the Homeland Security Act of 2002, and the issuance of certification. The Administrator shall require cabin crew members to complete a cabin crew training courses approved by the Federal Aviation Administration and the Transportation Security Administration.

      ‘(2) Certification-

        ‘(A) IN GENERAL- The Administrator shall provide for the issuance of an appropriate certificate to each individual who successfully completes such a course.

        ‘(B) CONTENTS- The cabin crew certificate shall--

          ‘(i) be numbered and recorded by the Administrator of the Federal Aviation Administration;

          ‘(ii) contain the name, address, and description of the individual to whom the certificate is issued; and

          ‘(iii) contain the name of the current air carrier employer of the certificate holder;

          ‘(iv) contain terms the Administrator determines are necessary to ensure safety in air commerce, including terms that the certificate shall remain valid unless the Administrator suspends or revokes the certificate; and

          ‘(v) designate the type and model of aircraft on which the certificate holder cabin crew member has successfully completed all Federal Aviation Administration and Transportation Security Administration required training in order to be assigned duties on board such type and model of aircraft.

      ‘(3) CABIN CREW DEFINED- In this subsection, the term ‘cabin crew’ means individuals working in an aircraft cabin on board a transport category aircraft with 20 or more seats.’.

SEC. 518. AIRCRAFT MANUFACTURER INSURANCE.

    (a) IN GENERAL- Section 44302(f) is amended by adding at the end the following:

      ‘(3) AIRCRAFT MANUFACTURERS- The Secretary may offer to provide war and terrorism insurance to aircraft manufacturers for loss or damage arising from the operation of an American or foreign-flag aircraft, in excess of $50,000,000 in the aggregate or in excess of such other amounts of available primary insurance, on such terms and conditions as the Secretary may prescribe.’.

    (b) CONFORMING AMENDMENTS-

      (1) DEFINITION OF AIRCRAFT MANUFACTURER- Section 44301 is amended by adding at the end the following:

      ‘(3) ‘aircraft manufacturer’ means any company or other business entity the majority ownership and control of which is by United States citizens that manufactures aircraft or aircraft engines.’.

      (2) COVERAGE- Section 44304(a) is amended by adding at the end the following:

      ‘(6) war and terrorism losses or damages of an aircraft manufacturer arising from the operation of an American or foreign-flag aircraft.’.

SEC. 519. GROUND-BASED PRECISION NAVIGATIONAL AIDS.

    (a) IN GENERAL- The Secretary of Transportation may establish a program for the installation, operation, and maintenance of ground-based precision navigational aids for terrain-challenged airports. The program shall include provision for--

      (1) preventative and corrective maintenance for the life of each system of such aids; and

      (2) requisite staffing and resources for the Federal Aviation Administration’s efficient maintenance of the program.

    (b) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the Secretary of Transportation to carry out the program established under subsection (a) such sums as may be necessary.

SEC. 520. STANDBY POWER EFFICIENCY PROGRAM.

    (a) ESTABLISHMENT- The Secretary of Transportation, in cooperation with the Secretary of Energy and, where applicable, the Secretary of Defense, may establish a program to improve the efficiency, cost-effectiveness, and environmental performance of standby power systems at Federal Aviation Administration sites, including the implementation of fuel cell technology.

    (b) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the Secretary of Transportation such sums as may be necessary for each of fiscal years 2004 through 2008 to carry out the provisions of this section.

TITLE VI--SECOND CENTURY OF FLIGHT

SEC. 601. FINDINGS.

    The Congress finds the following:

      (1) Since 1990, the United States has lost more than 600,000 aerospace jobs.

      (2) Over the last year, approximately 100,000 airline workers and aerospace workers have lost their jobs as a result of the terrorist attacks in the United States on September 11, 2001, and the slowdown in the world economy.

      (3) The United States has revolutionized the way people travel, developing new technologies and aircraft to move people more efficiently and more safely.

      (4) Past Federal investment in aeronautics research and development have benefited the economy and national security of the United States and the quality of life of its citizens.

      (5) The total impact of civil aviation on the United States economy exceeds $900 billion annually--9 percent of the gross national product--and 11 million jobs in the national workforce. Civil aviation products and services generate a significant surplus for United States trade accounts, and amount to significant numbers of America’s highly skilled, technologically qualified work force.

      (6) Aerospace technologies, products and services underpin the advanced capabilities of our men and women in uniform and those charged with homeland security.

      (7) Future growth in civil aviation increasingly will be constrained by concerns related to aviation system safety and security, aviation system capabilities, aircraft noise, emissions, and fuel consumption.

      (8) The United States is in danger of losing its aerospace leadership to international competitors aided by persistent government intervention. Many governments take their funding beyond basic technology development, choosing to fund product development and often bring the product to market, even if the products are not fully commercially viable. Moreover, international competitors have recognized the importance of noise, emission, fuel consumption, and constraints of the aviation system and have established aggressive agendas for addressing each of these concerns.

      (9) Efforts by the European Union, through a variety of means, will challenge the United States’ leadership position in aerospace. A recent report outlined the European Union’s goal of becoming the world’s leader in aviation and aeronautics by the end of 2020, utilizing better coordination among research programs, planning, and funding to accomplish this goal.

      (10) Revitalization and coordination of the United States’ efforts to maintain its leadership in aviation and aeronautics are critical and must begin now.

      (11) A recent report by the Commission on the Future of the United States Aerospace Industry outlined the scope of the problems confronting the aerospace and aviation industries in the United States and found that--

        (A) Aerospace will be at the core of America’s leadership and strength throughout the 21st century;

        (B) Aerospace will play an integral role in our economy, our security, and our mobility; and

        (C) global leadership in aerospace is a national imperative.

      (12) Despite the downturn in the global economy, Federal Aviation Administration projections indicate that upwards of 1 billion people will fly annually by 2013. Efforts must begin now to prepare for future growth in the number of airline passengers.

      (13) The United States must increase its investment in research and development to revitalize the aviation and aerospace industries, to create jobs, and to provide educational assistance and training to prepare workers in those industries for the future.

      (14) Current and projected levels of Federal investment in aeronautics research and development are not sufficient to address concerns related to the growth of aviation.

Subtitle A--The Office of Aerospace and Aviation Liaison

SEC. 621. OFFICE OF AEROSPACE AND AVIATION LIAISON.

    (a) ESTABLISHMENT- There is established within the Department of Transportation an Office of Aerospace and Aviation Liaison.

    (b) FUNCTION- The Office shall--

      (1) coordinate aviation and aeronautics research programs to achieve the goal of more effective and directed programs that will result in applicable research;

      (2) coordinate goals and priorities and coordinate research activities within the Federal Government with United States aviation and aeronautical firms;

      (3) coordinate the development and utilization of new technologies to ensure that when available, they may be used to their fullest potential in aircraft and in the air traffic control system;

      (4) facilitate the transfer of technology from research programs such as the National Aeronautics and Space Administration program established under section 681 and the Department of Defense Advanced Research Projects Agency program to Federal agencies with operational responsibilities and to the private sector;

      (5) review activities relating to noise, emissions, fuel consumption, and safety conducted by Federal agencies, including the Federal Aviation Administration, the National Aeronautics and Space Administration, the Department of Commerce, and the Department of Defense;

      (6) review aircraft operating procedures intended to reduce noise and emissions, identify and coordinate research efforts on aircraft noise and emissions reduction, and ensure that aircraft noise and emissions reduction regulatory measures are coordinated; and

      (7) work with the National Air Traffic Management System Development Office to coordinate research needs and applications for the next generation air traffic management system.

    (c) PUBLIC-PRIVATE PARTICIPATION- In carrying out its functions under this section, the Office shall consult with, and ensure participation by, the private sector (including representatives of general aviation, commercial aviation, and the space industry), members of the public, and other interested parties.

    (d) Reporting Requirements-

      (1) INITIAL STATUS REPORT- Not later than 90 days after the date of enactment of this Act, the Secretary of Transportation shall submit a report to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Transportation and Infrastructure on the status of the establishment of the Office of Aerospace and Aviation Liaison, including the name of the program manager, the list of staff from each participating department or agency, names of the national team participants, and the schedule for future actions.

      (2) PLAN- The Office shall submit to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Science a plan for implementing paragraphs (1) and (2) of subsection (b) and a proposed budget for implementing the plan.

      (3) ANNUAL REPORT- The Office shall submit to the Senate Committee on Commerce, Science, and Transportation, the House of Representatives Committee on Transportation and Infrastructure, and the House of Representatives Committee on Science an annual report that--

        (A) contains a unified budget that combines the budgets of each program coordinated by the Office; and

        (B) describes the coordination activities of the Office during the preceding year.

    (e) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the Secretary of Transportation $2,000,000 for fiscal years 2004 and 2005 to carry out this section, such sums to remain available until expended.

SEC. 622. NATIONAL AIR TRAFFIC MANAGEMENT SYSTEM DEVELOPMENT OFFICE.

    (a) ESTABLISHMENT- There is established within the Federal Aviation Administration a National Air Traffic Management System Development Office, the head of which shall report directly to the Administrator.

    (b) Development of Next Generation Air Traffic Management System-

      (1) IN GENERAL- The Office shall develop a next generation air traffic management system plan for the United States that will--

        (A) transform the national airspace system to meet air transportation mobility, efficiency, and capacity needs beyond those currently included in the Federal Aviation Administration’s operational evolution plan;

        (B) result in a national airspace system that can safely and efficiently accommodate the needs of all users;

        (C) build upon current air traffic management and infrastructure initiatives;

        (D) improve the security, safety, quality, and affordability of aviation services;

        (E) utilize a system-of-systems, multi-agency approach to leverage investments in civil aviation, homeland security, and national security;

        (F) develop a highly integrated, secure architecture to enable common situational awareness for all appropriate system users; and

        (G) ensure seamless global operations for system users, to the maximum extent possible.

      (2) MULTI-AGENCY AND STAKEHOLDER INVOLVEMENT- In developing the system, the Office shall--

        (A) include staff from the Federal Aviation Administration, the National Aeronautics and Space Administration, the Department of Homeland Security, the Department of Defense, the Department of Commerce, and other Federal agencies and departments determined by the Secretary of Transportation to have an important interest in, or responsibility for, other aspects of the system; and

        (B) consult with, and ensure participation by, the private sector (including representatives of general aviation, commercial aviation, and the space industry), members of the public, and other interested parties.

      (3) DEVELOPMENT CRITERIA AND REQUIREMENTS- In developing the next generation air traffic management system plan under paragraph (1), the Office shall--

        (A) develop system performance requirements;

        (B) select an operational concept to meet system performance requirements for all system users;

        (C) ensure integration of civil and military system requirements, balancing safety, security, and efficiency, in order to leverage Federal funding;

        (D) utilize modeling, simulation, and analytical tools to quantify and validate system performance and benefits;

        (E) develop a transition plan, including necessary regulatory aspects, that ensures operational achievability for system operators;

        (F) develop transition requirements for ongoing modernization programs, if necessary;

        (G) develop a schedule for aircraft equipment implementation and appropriate benefits and incentives to make that schedule achievable; and

        (H) assess, as part of its function within the Office of Aeronautical and Aviation Liaison, the technical readiness of appropriate research technological advances for integration of such research and advances into the plan.

    (c) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the Administrator of the Federal Aviation Administration $300,000,000 for the period beginning with fiscal year 2004 and ending with fiscal year 2010 to carry out this section.

SEC. 623. REPORT ON CERTAIN MARKET DEVELOPMENTS AND GOVERNMENT POLICIES.

    Within 6 months after the date of enactment of this Act, the Department of Transportation’s Office of Aerospace and Aviation liaison, in cooperation with appropriate Federal agencies, shall submit to the Senate Committee on Commerce, Science, and Transportation, the House of Representatives Committee on Science, and the House of Representatives Committee on Transportation and Infrastructure a report about market developments and government policies influencing the competitiveness of the United States jet transport aircraft industry that--

      (1) describes the structural characteristics of the United States and the European Union jet transport industries, and the markets for these industries;

      (2) examines the global market factors affecting the jet transport industries in the United States and the European Union, such as passenger and freight airline purchasing patterns, the rise of low-cost carriers and point-to-point service, the evolution of new market niches, and direct and indirect operating cost trends;

      (3) reviews government regulations in the United States and the European Union that have altered the competitive landscape for jet transport aircraft, such as airline deregulation, certification and safety regulations, noise and emissions regulations, government research and development programs, advances in air traffic control and other infrastructure issues, corporate and air travel tax issues, and industry consolidation strategies;

      (4) analyzes how changes in the global market and government regulations have affected the competitive position of the United States aerospace and aviation industry vis-a.AE2-vis the European Union aerospace and aviation industry; and

      (5) describes any other significant developments that affect the market for jet transport aircraft.

Subtitle B--Technical Programs

SEC. 641. AEROSPACE AND AVIATION SAFETY WORKFORCE INITIATIVE.

    (a) IN GENERAL- The Administrator of the National Aeronautics and Space Administration and the Administrator of the Federal Aviation Administration shall establish a joint program of competitive, merit-based grants for eligible applicants to increase the number of students studying toward and completing technical training programs, certificate programs, and associate’s, bachelor’s, master’s, or doctorate degrees in fields related to aerospace and aviation safety.

    (b) INCREASED PARTICIPATION GOAL- In selecting projects under this paragraph, the Director shall consider means of increasing the number of students studying toward and completing technical training and apprenticeship programs, certificate programs, and associate’s or bachelor’s degrees in fields related to aerospace and aviation safety who are individuals identified in section 33 or 34 of the Science and Engineering Equal Opportunities Act (42 U.S.C. 1885a or 1885b).

    (c) SUPPORTABLE PROJECTS- The types of projects the Administrators may consider under this paragraph include those that promote high quality--

      (1) interdisciplinary teaching;

      (2) undergraduate-conducted research;

      (3) mentor relationships for students;

      (4) graduate programs;

      (5) bridge programs that enable students at community colleges to matriculate directly into baccalaureate aerospace and aviation safety related programs;

      (6) internships, including mentoring programs, carried out in partnership with the aerospace and aviation industry;

      (7) technical training and apprenticeship that prepares students for careers in aerospace manufacturing or operations; and

      (8) innovative uses of digital technologies, particularly at institutions of higher education that serve high numbers or percentages of economically disadvantaged students.

    (d) GRANTEE REQUIREMENTS- In developing grant requirements under this section, the Administrators shall consider means, developed in concert with applicants, of increasing the number of students studying toward and completing technical training and apprenticeship programs, certificate programs, and associate’s or bachelor’s degrees in fields related to aerospace and aviation safety.

    (e) DEFINITIONS- In this section:

      (1) ELIGIBLE APPLICANT DEFINED- The term ‘eligible applicant’ means--

        (A) an institution of higher education;

        (B) a consortium of institutions of higher education; or

        (C) a partnership between--

          (i) an institution of higher education or a consortium of such institutions; and

          (ii) a nonprofit organization, a State or local government, or a private company, with demonstrated experience and effectiveness in aerospace education.

      (2) INSTITUTION OF HIGHER EDUCATION- The term ‘institution of higher education’ has the meaning given that term by subsection (a) of section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001(a)), and includes an institution described in subsection (b) of that section.

    (f) Authorization of Appropriations-

      (1) NASA- There are authorized to be appropriated to the Administrator of the National Aeronautics and Space Administration such sums as may be necessary for fiscal year 2004 to carry out this section.

      (2) FAA- There are authorized to be appropriated to the Administrator of the Federal Aviation Administration such sums as may be necessary for fiscal year 2004 to carry out this section.

    (g) REPORT, BUDGET, AND PLAN- Within 180 days after the date of enactment of this Act, the Administrators jointly shall submit to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Transportation and Infrastructure a report setting forth--

      (1) recommendations as to whether the program authorized by this section should be extended for multiple years;

      (2) a budget for such a multi-year program; and

      (3) a plan for conducting such a program.

SEC. 642. SCHOLARSHIPS FOR SERVICE.

    (a) IN GENERAL- The Administrator of the National Aeronautics and Space Administration and the Administrator of the Federal Aviation Administration shall develop a joint student loan program for fulltime students enrolled in an undergraduate or post-graduate program leading to an advanced degree in an aerospace-related or aviation safety-related field of endeavor.

    (b) INTERNSHIPS- The Administrators may provide temporary internships to such students.

    (c) Authorization of Appropriations-

      (1) NASA- There are authorized to be appropriated to the Administrator of the National Aeronautics and Space Administration such sums as may be necessary for fiscal year 2004 to carry out this section.

      (2) FAA- There are authorized to be appropriated to the Administrator of the Federal Aviation Administration such sums as may be necessary for fiscal year 2004 to carry out this section.

    (g) REPORT, BUDGET, AND PLAN- Within 180 days after the date of enactment of this Act, the Administrators jointly shall submit to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Transportation and Infrastructure a report setting forth--

      (1) recommendations as to whether the program authorized by this section should be extended for multiple years;

      (2) a budget for such a multi-year program; and

      (3) a plan for conducting such a program.

Subtitle C--FAA Research, Engineering, and Development

SEC. 661. RESEARCH PROGRAM TO IMPROVE AIRFIELD PAVEMENTS.

    The Administrator of the Federal Aviation Administration shall continue the program to consider awards to nonprofit concrete and asphalt pavement research foundations to improve the design, construction, rehabilitation, and repair of rigid concrete airfield pavements to aid in the development of safer, more cost-effective, and more durable airfield pavements. The Administrator may use grants or cooperative agreements in carrying out this section. Nothing in this section requires the Administrator to prioritize an airfield pavement research program above safety, security, Flight 21, environment, or energy research programs.

SEC. 662. ENSURING APPROPRIATE STANDARDS FOR AIRFIELD PAVEMENTS.

    (a) IN GENERAL- The Administrator of the Federal Aviation Administration shall review and determine whether the Federal Aviation Administration’s standards used to determine the appropriate thickness for asphalt and concrete airfield pavements are in accordance with the Federal Aviation Administration’s standard 20-year-life requirement using the most up-to-date available information on the life of airfield pavements. If the Administrator determines that such standards are not in accordance with that requirement, the Administrator shall make appropriate adjustments to the Federal Aviation Administration’s standards for airfield pavements.

    (b) REPORT- Within 1 year after the date of enactment of this Act, the Administrator shall report the results of the review conducted under subsection (a) and the adjustments, if any, made on the basis of that review to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Transportation and Infrastructure.

SEC. 663. ASSESSMENT OF WAKE TURBULENCE RESEARCH AND DEVELOPMENT PROGRAM.

    (a) ASSESSMENT- The Administrator of the Federal Aviation Administration shall enter into an arrangement with the National Research Council for an assessment of the Federal Aviation Administration’s proposed wake turbulence research and development program. The assessment shall include--

      (1) an evaluation of the research and development goals and objectives of the program;

      (2) a listing of any additional research and development objectives that should be included in the program;

      (3) any modifications that will be necessary for the program to achieve the program’s goals and objectives on schedule and within the proposed level of resources; and

      (4) an evaluation of the roles, if any, that should be played by other Federal agencies, such as the National Aeronautics and Space Administration and the National Oceanic and Atmospheric Administration, in wake turbulence research and development, and how those efforts could be coordinated.

    (b) REPORT- A report containing the results of the assessment shall be provided to the Committee on Science of the House of Representatives and to the Committee on Commerce, Science, and Transportation of the Senate not later than 1 year after the date of enactment of this Act.

    (c) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the Administrator of the Federal Aviation Administration $500,000 for fiscal year 2004 to carry out this section.

SEC. 664. CABIN AIR QUALITY RESEARCH PROGRAM.

    In accordance with the recommendation of the National Academy of Sciences in its report entitled ‘The Airliner Cabin Environment and the Health of Passengers and Crew’, the Federal Aviation Administration shall establish a research program to address questions about improving cabin air quality of aircraft, including methods to limit airborne diseases.

SEC. 665. INTERNATIONAL ROLE OF THE FAA.

    Section 40101(d) is amended by adding at the end the following:

      ‘(8) Exercising leadership with the Administrator’s foreign counterparts, in the International Civil Aviation Organization and its subsidiary organizations, and other international organizations and fora, and with the private sector to promote and achieve global improvements in the safety, efficiency, and environmental effect of air travel.’.

SEC. 666. FAA REPORT ON OTHER NATIONS’ SAFETY AND TECHNOLOGICAL ADVANCEMENTS.

    The Administrator of the Federal Aviation Administration shall review aviation and aeronautical safety, and research funding and technological actions in other countries. The Administrator shall submit a report to the Committee on Science of the House of Representatives and to the Committee on Commerce, Science, and Transportation of the Senate, together with any recommendations as to how such activities might be utilized in the United States.

SEC. 667. DEVELOPMENT OF ANALYTICAL TOOLS AND CERTIFICATION METHODS.

    The Federal Aviation Administration shall conduct research to promote the development of analytical tools to improve existing certification methods and to reduce the overall costs for the certification of new products.

SEC. 668. PILOT PROGRAM TO PROVIDE INCENTIVES FOR DEVELOPMENT OF NEW TECHNOLOGIES.

    (a) IN GENERAL- The Administrator of the Federal Aviation Administration may conduct a limited pilot program to provide operating incentives to users of the airspace for the deployment of new technologies, including technologies to facilitate expedited flight routing and sequencing of take-offs and landings.

    (b) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the Administrator $500,000 for fiscal year 2004.

SEC. 669. FAA CENTER FOR EXCELLENCE FOR APPLIED RESEARCH AND TRAINING IN THE USE OF ADVANCED MATERIALS IN TRANSPORT AIRCRAFT.

    (a) IN GENERAL- The Administrator of the Federal Aviation Administration shall develop a Center for Excellence focused on applied research and training on the durability and maintainability of advanced materials in transport airframe structures, including the use of polymeric composites in large transport aircraft. The Center shall--

      (1) promote and facilitate collaboration among academia, the Federal Aviation Administration’s Transportation Division, and the commercial aircraft industry, including manufacturers, commercial air carriers, and suppliers; and

      (2) establish goals set to advance technology, improve engineering practices, and facilitate continuing education in relevant areas of study.

    (b) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the Administrator $500,000 for fiscal year 2004 to carry out this section.

SEC. 670. FAA CERTIFICATION OF DESIGN ORGANIZATIONS.

    (a) GENERAL AUTHORITY TO ISSUE CERTIFICATES- Section 44702(a) is amended by inserting ‘design organization certificates,’ after ‘airman certificates,’.

    (b) Design Organization Certificates-

      (1) IN GENERAL- Section 44704 is amended--

        (A) by striking the section heading and inserting the following:

‘ 44704. Design organization certificates, type certificates, production certificates, and airworthiness certificates’

;

        (B) by redesignating subsections (a) through (d) as subsections (b) through (e);

        (C) by inserting before subsection (b) the following:

    ‘(a) Design Organization Certificates-

      ‘(1) PLAN- Within 3 years after the date of enactment of the Aviation Investment and Revitalization Vision Act, the Administrator of the Federal Aviation Administration shall submit a plan to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Transportation and Infrastructure for the development and oversight of a system for certification of design organizations under paragraph (2) that ensures that the system meets the highest standards of safety.

      ‘(2) IMPLEMENTATION OF PLAN- Within 5 years after the date of enactment of the Aviation Investment and Revitalization Vision Act, the Administrator of the Federal Aviation Administration may commence the issuance of design organization certificates under paragraph (3) to authorize design organizations to certify compliance with the requirements and minimum standards prescribed under section 44701(a) for the type certification of aircraft, aircraft engines, propellers, or appliances.

      ‘(3) ISSUANCE OF CERTIFICATES- On receiving an application for a design organization certificate, the Administrator shall examine and rate the design organization in accordance with the regulations prescribed by the Administrator to determine that the design organization has adequate engineering, design, and testing capabilities, standards, and safeguards to ensure that the product being certificated is properly designed and manufactured, performs properly, and meets the regulations and minimum standards prescribed under that section. The Administrator shall include in a design organization certificate terms required in the interest of safety.

      ‘(4) NO EFFECT ON POWER OF REVOCATION- Nothing in this subsection affects the authority of the Secretary of Transportation to revoke a certificate.’;

        (D) by striking subsection (b), as redesignated, and inserting the following:

    ‘(b) Type Certificates-

      ‘(1) IN GENERAL- The Administrator may issue a type certificate for an aircraft, aircraft engine, or propeller, or for an appliance specified under paragraph (2)(A) of this subsection--

        ‘(A) when the Administrator finds that the aircraft, aircraft engine, or propeller, or appliance is properly designed and manufactured, performs properly, and meets the regulations and minimum standards prescribed under section 44701(a) of this title; or

        ‘(B) based on a certification of compliance made by a design organization certificated under subsection (a).

      ‘(2) INVESTIGATION AND HEARING- On receiving an application for a type certificate, the Administrator shall investigate the application and may conduct a hearing. The Administrator shall make, or require the applicant to make, tests the Administrator considers necessary 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 organization certificate, ’.

    (e) Conforming Amendments-

      (1) CHAPTER ANALYSIS- The chapter analysis for chapter 447 is amended by striking the item relating to section 44704 and inserting the following:

      ‘44704. Design organization certificates, type certificates, production certificates, and airworthiness certificates.’.

      (2) CROSS REFERENCE- Section 44715(a)(3) is amended by striking ‘44704(a)’ and inserting ‘44704(b)’.

SEC. 671. REPORT ON LONG TERM ENVIRONMENTAL IMPROVEMENTS.

    (a) IN GENERAL- The Administrator of the Federal Aviation Administration, in consultation with the Administrator of the National Aeronautics and Space Administration and the head of the Department of Transportation’s Office of Aerospace and Aviation Liaison, shall conduct a study of ways to reduce aircraft noise and emissions and to increase aircraft fuel efficiency. The study shall--

      (1) explore new operational procedures for aircraft to achieve those goals;

      (2) identify both near term and long term options to achieve those goals;

      (3) identify infrastructure changes that would contribute to attainment of those goals;

      (4) identify emerging technologies that might contribute to attainment of those goals;

      (5) develop a research plan for application of such emerging technologies, including new combuster and engine design concepts and methodologies for designing high bypass ratio turbofan engines so as to minimize the effects on climate change per unit of production of thrust and flight speed; and

      (6) develop an implementation plan for exploiting such emerging technologies to attain those goals.

    (b) REPORT- The Administrator shall transmit a report on the study to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Transportation and Infrastructure within 1 year after the date of enactment of this Act.

    (c) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the Administrator of the Federal Aviation Administration $500,000 for fiscal year 2004 to carry out this section.

Calendar No. 83

108th CONGRESS

1st Session

S. 824

[Report No. 108-41]

A BILL

To reauthorize the Federal Aviation Administration, and for other purposes.


May 2, 2003

Reported with an amendment