Vision 100¿century Of Aviation

PUBLIC LAW 108–176—DEC. 12, 2003

VISION 100—CENTURY OF AVIATION
REAUTHORIZATION ACT

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117 STAT. 2490

PUBLIC LAW 108–176—DEC. 12, 2003

Public Law 108–176
108th Congress
An Act
Dec. 12, 2003
[H.R. 2115]
Vision 100—
Century of
Aviation
Reauthorization
Act.
49 USC 40101
note.

To amend title 49, United States Code, to reauthorize programs for 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,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) SHORT TITLE.—This Act may be cited as the ‘‘Vision 100—
Century of Aviation Reauthorization Act’’.
(b) TABLE OF CONTENTS.—The table of contents for this Act
is as follows:
Sec.
Sec.
Sec.
Sec.

1.
2.
3.
4.

Short title; table of contents.
Amendments to title 49, United States Code.
Applicability.
Findings.
TITLE I—AIRPORT AND AIRWAY IMPROVEMENTS

Subtitle A—Funding of FAA Programs
Sec. 101. Airport planning and development and noise compatibility planning and
programs.
Sec. 102. Air navigation facilities and equipment.
Sec. 103. Federal Aviation Administration operations.
Sec. 104. Funding for aviation programs.
Sec. 105. Agreements for operation of airport facilities.
Sec. 106. Insurance.
Sec.
Sec.
Sec.
Sec.

121.
122.
123.
124.

Subtitle B—Passenger Facility Fees
Low-emission airport vehicles and ground support equipment.
Use of fees to pay debt service.
Streamlining of the passenger facility fee program.
Financial management of passenger facility fees.

Subtitle C—AIP Modifications
Sec. 141. Airfield pavement.
Sec. 142. Replacement of baggage conveyor systems.
Sec. 143. Authority to use certain funds for airport security programs and activities.
Sec. 144. Grant assurances.
Sec. 145. Clarification of allowable project costs.
Sec. 146. Apportionments to primary airports.
Sec. 147. Cargo airports.
Sec. 148. Considerations in making discretionary grants.
Sec. 149. Flexible funding for nonprimary airport apportionments.
Sec. 150. Use of apportioned amounts.
Sec. 151. Increase in apportionment for, and flexibility of, noise compatibility planning programs.
Sec. 152. Pilot program for purchase of airport development rights.
Sec. 153. Military airport program.
Sec. 154. Airport safety data collection.
Sec. 155. Airport privatization pilot program.
Sec. 156. Innovative financing techniques.
Sec. 157. Airport security program.

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PUBLIC LAW 108–176—DEC. 12, 2003

117 STAT. 2491

Sec. 158. Emission credits for air quality projects.
Sec. 159. Low-emission airport vehicles and infrastructure.
Sec. 160. Compatible land use planning and projects by State and local governments.
Sec. 161. Temporary increase in Government share of certain AIP project costs.
Sec. 162. Share of airport project costs.
Sec. 163. Federal share for private ownership of airports.
Sec. 164. Disposition of land acquired for noise compatibility purposes.
Sec. 165. Hangar construction grant assurance.
Sec. 166. Terminal development costs.
Sec.
Sec.
Sec.
Sec.
Sec.

181.
182.
183.
184.
185.

Sec.
Sec.
Sec.
Sec.
Sec.

186.
187.
188.
189.
190.

Subtitle D—Miscellaneous
Design-build contracting.
Pilot program for innovative financing of air traffic control equipment.
Cost sharing of air traffic modernization projects.
Facilities and equipment reports.
Civil penalty for permanent closure of an airport without providing sufficient notice.
Midway Island Airport.
Intermodal planning.
Marshall Islands, Micronesia, and Palau.
Limitation on approval of certain programs.
Conveyance of airport.
TITLE II—FAA ORGANIZATION

Sec.
Sec.
Sec.
Sec.

201.
202.
203.
204.

Subtitle A—FAA Reform
Management advisory committee members.
Reorganization of the air traffic services subcommittee.
Clarification of the responsibilities of the Chief Operating Officer.
Deputy Administrator.

Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

221.
222.
223.
224.
225.
226.
227.
228.
229.

Subtitle B—Miscellaneous
Controller staffing.
Whistleblower protection under acquisition management system.
FAA purchase cards.
Procurement.
Definitions.
Air traffic controller retirement.
Design organization certificates.
Judicial review.
Overflight fees.

Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

301.
302.
303.
304.
305.
306.
307.
308.
309.

Subtitle A—Aviation Development Streamlining
Short title.
Findings.
Airport capacity enhancement.
Aviation project streamlining.
Elimination of duplicative requirements.
Construction of certain airport capacity projects.
Issuance of orders.
Limitations.
Relationship to other requirements.

Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

321.
322.
323.
324.
325.
326.
327.

Subtitle B—Miscellaneous
Report on long-term environmental improvements.
Noise disclosure.
Overflights of national parks.
Noise exposure maps.
Implementation of Chapter 4 noise standards.
Reduction of noise and emissions from civilian aircraft.
Special rule for airport in Illinois.

TITLE III—ENVIRONMENTAL PROCESS

TITLE IV—AIRLINE SERVICE IMPROVEMENTS
Subtitle A—Small Community Air Service
Sec. 401. Exemption from hold-in requirements.
Sec. 402. Adjustments to account for significantly increased costs.
Sec. 403. Joint proposals.

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117 STAT. 2492
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

PUBLIC LAW 108–176—DEC. 12, 2003
404.
405.
406.
407.
408.
409.

Essential air service authorization.
Community and regional choice programs.
Code-sharing pilot program.
Tracking service.
EAS local participation program.
Measurement of highway miles for purposes of determining eligibility of
essential air service subsidies.
Sec. 410. Incentive program.
Sec. 411. National Commission on Small Community Air Service.
Sec. 412. Small community air service.
Subtitle B—Miscellaneous
Sec. 421. Data on incidents and complaints involving passenger and baggage security screening.
Sec. 422. Delay reduction actions.
Sec. 423. Collaborative decisionmaking pilot program.
Sec. 424. Competition disclosure requirement for large and medium hub airports.
Sec. 425. Slot exemptions at Ronald Reagan Washington National Airport.
Sec. 426. Definition of commuter aircraft.
Sec. 427. Airfares for members of the Armed Forces.
Sec. 428. Air carriers required to honor tickets for suspended service.
TITLE V—AVIATION SAFETY
Counterfeit or fraudulently represented parts violations.
Runway safety standards.
Civil penalties.
Improvement of curriculum standards for aviation maintenance technicians.
Sec. 505. Assessment of wake turbulence research and development program.
Sec. 506. FAA inspector training.
Sec. 507. Air transportation oversight system plan.
Sec.
Sec.
Sec.
Sec.

501.
502.
503.
504.

Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

601.
602.
603.
604.
605.
606.
607.
608.
609.
610.
611.
612.
613.

TITLE VI—AVIATION SECURITY
Certificate actions in response to a security threat.
Justification for air defense identification zone.
Crew training.
Study of effectiveness of transportation security system.
Airport security improvement projects.
Charter security.
CAPPS2.
Report on passenger prescreening program.
Arming cargo pilots against terrorism.
Removal of cap on TSA staffing level.
Foreign repair stations.
Flight training.
Deployment of screeners at Kenai, Homer, and Valdez, Alaska.

TITLE VII—AVIATION RESEARCH
Sec. 701. Authorization of appropriations.
Sec. 702. Federal Aviation Administration Science and Technology Scholarship Program.
Sec. 703. National Aeronautics and Space Administration Science and Technology
Scholarship Program.
Sec. 704. Research program to improve airfield pavements.
Sec. 705. Ensuring appropriate standards for airfield pavements.
Sec. 706. Development of analytical tools and certification methods.
Sec. 707. Research on aviation training.
Sec. 708. FAA Center for Excellence for applied research and training in the use
of advanced materials in transport aircraft.
Sec. 709. Air Transportation System Joint Planning and Development Office.
Sec. 710. Next generation air transportation senior policy committee.
Sec. 711. Rotorcraft research and development initiative.
Sec. 712. Airport Cooperative Research Program.
Sec.
Sec.
Sec.
Sec.
Sec.

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801.
802.
803.
804.
805.

TITLE VIII—MISCELLANEOUS
Definitions.
Report on aviation safety reporting system.
Anchorage air traffic control.
Extension of Metropolitan Washington Airports Authority.
Improvement of aviation information collection.

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PUBLIC LAW 108–176—DEC. 12, 2003
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

117 STAT. 2493

806.
807.
808.
809.
810.
811.
812.
813.
814.
815.
816.
817.
818.
819.
820.
821.
822.
823.
824.
825.
826.

Government-financed air transportation.
Air carrier citizenship.
United States presence in global air cargo industry.
Availability of aircraft accident site information.
Notice concerning aircraft assembly.
Type certificates.
Reciprocal airworthiness certification.
International role of the FAA.
Flight attendant certification.
Air quality in aircraft cabins.
Recommendations concerning travel agents.
Reimbursement for losses incurred by general aviation entities.
International air show.
Report on certain market developments and government policies.
International air transportation.
Reimbursement of air carriers for certain screening and related activities.
Charter airlines.
General aviation flights at Ronald Reagan Washington National Airport.
Review of air carrier compensation.
Noise control plan for certain airports.
GAO report on airlines’ actions to improve finances and on executive compensation.
Sec. 827. Private air carriage in Alaska.
Sec. 828. Report on waivers of preference for buying goods produced in the United
States.
Sec. 829. Navigation fees.
TITLE IX—EXTENSION OF AIRPORT AND AIRWAY TRUST FUND
EXPENDITURE AUTHORITY
Sec. 901. Extension of expenditure authority.
Sec. 902. Technical correction to flight segment.
SEC. 2. AMENDMENTS TO TITLE 49, UNITED STATES CODE.

Except as otherwise expressly provided, whenever in this Act
an amendment or repeal is expressed in terms of an amendment
to, or a repeal of, a section or other provision, the reference shall
be considered to be made to a section or other provision of title
49, United States Code.
SEC. 3. APPLICABILITY.

49 USC 106 note.

Except as otherwise specifically provided, this Act and the
amendments made by this Act shall apply only to fiscal years
beginning after September 30, 2003.
SEC. 4. FINDINGS.

Congress finds the following:
(1) The United States has revolutionized the way people
travel, developing new technologies and aircraft to move people
more efficiently and more safely.
(2) Past Federal investment in aeronautics research and
development has benefited the economy and national security
of the United States and the quality of life of its citizens.
(3) The total impact of civil aviation on the United States
economy exceeds $900,000,000,000 annually and accounts for
9 percent of the gross national product and 11,000,000 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 the Nation’s highly
skilled, technologically qualified work force.
(4) Aerospace technologies, products, and services underpin
the advanced capabilities of our men and women in uniform
and those charged with homeland security.
(5) Future growth in civil aviation increasingly will be
constrained by concerns related to aviation system safety and

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49 USC 40101
note.

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117 STAT. 2494

PUBLIC LAW 108–176—DEC. 12, 2003
security, aviation system capabilities, aircraft noise, emissions,
and fuel consumption.
(6) Revitalization and coordination of the United States
efforts to maintain its leadership in aviation and aeronautics
are critical and must begin now.
(7) 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 the Nation’s leadership and strength throughout the 21st century;
(B) aerospace will play an integral role in the Nation’s
economy, security, and mobility; and
(C) global leadership in aerospace is a national imperative.
(8) Despite the downturn in the global economy, projections
of the Federal Aviation Administration indicate that upwards
of 1,000,000,000 people will fly annually by 2013. Efforts must
begin now to prepare for future growth in the number of airline
passengers.
(9) 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.

TITLE I—AIRPORT AND AIRWAY
IMPROVEMENTS
Subtitle A—Funding of FAA Programs
SEC.

101.

AIRPORT PLANNING AND DEVELOPMENT AND
COMPATIBILITY PLANNING AND PROGRAMS.

NOISE

(a) AUTHORIZATION.—Section 48103 is amended—
(1) by striking ‘‘September 30, 1998’’ and inserting ‘‘September 30, 2003’’; and
(2) by striking paragraphs (1) through (5) and inserting
the following:
‘‘(1) $3,400,000,000 for fiscal year 2004;
‘‘(2) $3,500,000,000 for fiscal year 2005;
‘‘(3) $3,600,000,000 for fiscal year 2006; and
‘‘(4) $3,700,000,000 for fiscal year 2007.’’.
(b) OBLIGATIONAL AUTHORITY.—Section 47104(c) is amended
by striking ‘‘September 30, 2003’’ and inserting ‘‘September 30,
2007’’.
SEC. 102. AIR NAVIGATION FACILITIES AND EQUIPMENT.

Section 48101 is amended—
(1) in subsection (a) by striking paragraphs (1) through
(5) and inserting the following:
‘‘(1) $3,138,000,000 for fiscal year 2004;
‘‘(2) $2,993,000,000 for fiscal year 2005;
‘‘(3) $3,053,000,000 for fiscal year 2006; and
‘‘(4) $3,110,000,000 for fiscal year 2007.’’;

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PUBLIC LAW 108–176—DEC. 12, 2003

117 STAT. 2495

(2) by striking subsections (b), (d), and (e) and redesignating
subsection (c) as subsection (b);
(3) by inserting after subsection (b) (as so redesignated)
the following:
‘‘(c) ENHANCED SAFETY AND SECURITY FOR AIRCRAFT OPERATIONS IN THE GULF OF MEXICO.—Of amounts appropriated under
subsection (a), such sums as may be necessary for fiscal years
2004 through 2007 may be used to expand and improve the safety,
efficiency, and security of air traffic control, navigation, low altitude
communications and surveillance, and weather services in the Gulf
of Mexico.
‘‘(d) OPERATIONAL BENEFITS OF WAKE VORTEX ADVISORY
SYSTEM.—Of amounts appropriated under subsection (a), such sums
as may be necessary for each of fiscal years 2004 through 2007
may be used for the development and analysis of wake vortex
advisory systems.
‘‘(e) GROUND-BASED PRECISION NAVIGATIONAL AIDS.—Of
amounts appropriated under subsection (a), such sums as may
be necessary for each of fiscal years 2004 to 2007 may be used
to establish a program for the installation of a precision approach
aid designed to improve aircraft accessibility at mountainous airports with limited land if the approach aid is able to provide
curved and segmented approach guidance for noise abatement purposes and other such approach aids and is certified or approved
by the Administrator.’’;
(4) in subsection (f)—
(A) by striking ‘‘for fiscal years beginning after September 30, 2000’’; and
(B) by inserting ‘‘may be used’’ after ‘‘necessary’’; and
(5) by adding at the end the following:
‘‘(h) STANDBY POWER EFFICIENCY PROGRAM.—Of amounts
appropriated under subsection (a), such sums as may be necessary
for each of fiscal years 2004 through 2007 may be used by the
Secretary of Transportation, in cooperation with the Secretary of
Energy and, where applicable, the Secretary of Defense, to 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.
‘‘(i) PILOT PROGRAM TO PROVIDE INCENTIVES FOR DEVELOPMENT
OF NEW TECHNOLOGIES.—Of amounts appropriated under subsection (a), $500,000 for fiscal year 2004 may be used for the
conduct of a 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 takeoffs and landings.’’.
SEC. 103. FEDERAL AVIATION ADMINISTRATION OPERATIONS.

(a) IN GENERAL.—Section 106(k)(1) is amended to read as follows:
‘‘(1) SALARIES, OPERATIONS, AND MAINTENANCE.—There is
authorized to be appropriated to the Secretary of Transportation
for
salaries,
operations,
and
maintenance
of
the
Administration—
‘‘(A) $7,591,000,000 for fiscal year 2004;
‘‘(B) $7,732,000,000 for fiscal year 2005;
‘‘(C) $7,889,000,000 for fiscal year 2006; and

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117 STAT. 2496

Appropriation
authorization.

PUBLIC LAW 108–176—DEC. 12, 2003

‘‘(D) $8,064,000,000 for fiscal year 2007.
Such sums shall remain available until expended.’’.
(b)
AUTHORIZED
EXPENDITURES.—Section
106(k)(2)
is
amended—
(1) by striking subparagraphs (A) and (B) and subparagraphs (F) through (I);
(2) by redesignating subparagraphs (C), (D), and (E) as
subparagraphs (A), (B), and (C), respectively;
(3) in subparagraphs (A), (B), and (C) (as so redesignated)
by striking ‘‘fiscal years 2000 through 2003’’ and inserting
‘‘fiscal years 2004 through 2007’’; and
(4) by adding after subparagraph (C) (as so redesignated)
the following:
‘‘(D) Such sums as may be necessary for fiscal years
2004 through 2007 for the Center for Management Development of the Federal Aviation Administration to operate
training courses and to support associated student travel
for both residential and field courses.
‘‘(E) Such sums as may be necessary for fiscal years
2004 through 2007 to carry out and expand the Air Traffic
Control Collegiate Training Initiative.
‘‘(F) Such sums as may be necessary for fiscal years
2004 through 2007 for the completion of the Alaska aviation
safety project with respect to the 3 dimensional mapping
of Alaska’s main aviation corridors.
‘‘(G) Such sums as may be necessary for fiscal years
2004 through 2007 to carry out the Aviation Safety
Reporting System.’’.
(c) AIRLINE DATA AND ANALYSIS.—There is authorized to be
appropriated to the Secretary of Transportation, out of the Airport
and Airway Trust Fund established by section 9502 of the Internal
Revenue Code of 1986 (26 U.S.C. 9502), $3,971,000 for fiscal year
2004, $4,045,000 for fiscal year 2005, $4,127,000 for fiscal year
2006, and $4,219,000 for fiscal year 2007 to gather aviation data
and conduct analyses of such data in the Bureau of Transportation
Statistics of the Department of Transportation.
SEC. 104. FUNDING FOR AVIATION PROGRAMS.

(a) IN GENERAL.—Chapter 481 is further amended by adding
at the end the following:
‘‘§ 48114. Funding for aviation programs
‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—
‘‘(1) AIRPORT AND AIRWAY TRUST FUND GUARANTEE.—
‘‘(A) IN GENERAL.—The total budget resources made
available from the Airport and Airway Trust Fund each
fiscal year through fiscal year 2007 pursuant to sections
48101, 48102, 48103, and 106(k) of title 49, United States
Code, shall be equal to the level of receipts plus interest
credited to the Airport and Airway Trust Fund for that
fiscal year. Such amounts may be used only for aviation
investment programs listed in subsection (b).
‘‘(B) GUARANTEE.—No funds may be appropriated or
limited for aviation investment programs listed in subsection (b) unless the amount described in subparagraph
(A) has been provided.

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PUBLIC LAW 108–176—DEC. 12, 2003

117 STAT. 2497

‘‘(2) ADDITIONAL AUTHORIZATIONS OF APPROPRIATIONS FROM
THE GENERAL FUND.—In any fiscal year through fiscal year
2007, if the amount described in paragraph (1) is appropriated,
there is further authorized to be appropriated from the general
fund of the Treasury such sums as may be necessary for the
Federal Aviation Administration Operations account.
‘‘(b) DEFINITIONS.—In this section, the following definitions
apply:
‘‘(1) TOTAL BUDGET RESOURCES.—The term ‘total budget
resources’ means the total amount made available from the
Airport and Airway Trust Fund for the sum of obligation limitations and budget authority made available for a fiscal year
for the following budget accounts that are subject to the obligation limitation on contract authority provided in this title and
for which appropriations are provided pursuant to authorizations contained in this title:
‘‘(A) 69–8106–0–7–402 (Grants in Aid for Airports).
‘‘(B) 69–8107–0–7–402 (Facilities and Equipment).
‘‘(C) 69–8108–0–7–402 (Research and Development).
‘‘(D) 69–8104–0–7–402 (Trust Fund Share of Operations).
‘‘(2) LEVEL OF RECEIPTS PLUS INTEREST.—The term ‘level
of receipts plus interest’ means the level of excise taxes and
interest credited to the Airport and Airway Trust Fund under
section 9502 of the Internal Revenue Code of 1986 for a fiscal
year as set forth in the President’s budget baseline projection
as defined in section 257 of the Balanced Budget and Emergency Deficit Control Act of 1985 (Public Law 99–177) (Treasury
identification code 20–8103–0–7–402) for that fiscal year submitted pursuant to section 1105 of title 31, United States
Code.
‘‘(c) ENFORCEMENT OF GUARANTEES.—
‘‘(1) TOTAL AIRPORT AND AIRWAY TRUST FUND FUNDING.—
It shall not be in order in the House of Representatives or
the Senate to consider any bill, joint resolution, amendment,
motion, or conference report that would cause total budget
resources in a fiscal year for aviation investment programs
described in subsection (b) to be less than the amount required
by subsection (a)(1)(A) for such fiscal year.
‘‘(2) CAPITAL PRIORITY.—It shall not be in order in the
House of Representatives or the Senate to consider any bill,
joint resolution, amendment, motion, or conference report that
provides an appropriation (or any amendment thereto) for any
fiscal year through fiscal year 2007 for Research and Development or Operations if the sum of the obligation limitation
for Grants-in-Aid for Airports and the appropriation for Facilities and Equipment for such fiscal year is below the sum
of the authorized levels for Grants-in-Aid for Airports and
for Facilities and Equipment for such fiscal year.’’.
(b) CONFORMING AMENDMENT.—The analysis for chapter 481
is amended by adding at the end the following:
‘‘48114. Funding for aviation programs.’’.

(c) REPEAL.—Section 106 of the Wendell H. Ford Aviation
Investment and Reform Act for the 21st Century (49 U.S.C. 48101
note) and the item relating to such section in the table of contenets
in section 1(b) of such Act are repealed.

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117 STAT. 2498

PUBLIC LAW 108–176—DEC. 12, 2003

SEC. 105. AGREEMENTS FOR OPERATION OF AIRPORT FACILITIES.

Section 47124 is amended—
(1) by striking subsection (a) and inserting the following:
‘‘(a) GOVERNMENT RELIEF FROM LIABILITY.—The Secretary of
Transportation shall ensure that an agreement under this subchapter with a qualified entity (as determined by the Secretary),
State, or a political subdivision of a State to allow the entity,
State, or subdivision to operate an airport facility relieves the
United States Government from any liability arising out of, or
related to, acts or omissions of employees of the entity, State,
or subdivision in operating the airport facility.’’;
(2) by striking subsection (b)(2) and inserting the following:
‘‘(2) The Secretary may make a contract with a qualified entity
(as determined by the Secretary) or, on a sole source basis, with
a State or a political subdivision of a State to allow the entity,
State, or subdivision to operate an airport traffic control tower
classified as a level I (Visual Flight Rules) tower if the Secretary
decides that the entity, State, or subdivision has the capability
to comply with the requirements of this paragraph. The contract
shall require that the entity, State, or subdivision comply with
applicable safety regulations in operating the facility and with
applicable competition requirements in making a subcontract to
perform work to carry out the contract.’’;
(3) in subsection (b)(3)—
(A) in the paragraph heading by striking ‘‘PILOT’’;
(B) by striking ‘‘pilot’’ each place it appears; and
(C) in subparagraph (E) by striking ‘‘$6,000,000 per
fiscal year’’ and inserting ‘‘$6,500,000 for fiscal 2004,
$7,000,000 for fiscal year 2005, $7,500,000 for fiscal year
2006, and $8,000,000 for fiscal year 2007’’; and
(4) in subsection (b)(4)(C) by striking ‘‘$1,100,000.’’ and
inserting ‘‘$1,500,000.’’.
SEC. 106. INSURANCE.

(a) AIRCRAFT MANUFACTURERS.—
(1) IN GENERAL.—Section 44302 is amended by adding at
the end the following:
‘‘(g) AIRCRAFT MANUFACTURERS.—
‘‘(1) IN GENERAL.—The Secretary may provide to an aircraft
manufacturer insurance for loss or damage resulting from operation of an aircraft by an air carrier and involving war or
terrorism.
‘‘(2) AMOUNT.—Insurance provided by the Secretary under
this subsection shall be for loss or damage in excess of the
greater of the amount of available primary insurance or
$50,000,000.
‘‘(3) TERMS AND CONDITIONS.—Insurance provided by the
Secretary under this subsection shall be subject to the terms
and conditions set forth in this chapter and such other terms
and conditions as the Secretary may prescribe.’’.
(2) DEFINITION OF AIRCRAFT MANUFACTURER.—Section
44301 is amended—
(A) by redesignating paragraphs (1) and (2) as paragraphs (2) and (3), respectively; and
(B) by inserting before paragraph (2) (as so redesignated) the following:

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‘‘(1) ‘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.’’.
(3) COVERAGE.—Section 44303(a) is amended—
(A) in the subsection heading by striking ‘‘IN GENERAL’’
and inserting ‘‘IN GENERAL’’; and
(B) by adding at the end the following:
‘‘(6) loss or damage of an aircraft manufacturer resulting
from operation of an aircraft by an air carrier and involving
war or terrorism.’’.
(b) AIRCRAFT MANUFACTURER LIABILITY FOR THIRD-PARTY
CLAIMS ARISING OUT OF ACTS OF TERRORISM.—Section 44303(b)
is amended by adding at the end the following: ‘‘The Secretary
may extend the provisions of this subsection to an aircraft manufacturer (as defined in section 44301) of the aircraft of the air carrier
involved.’’.
(c) PREMIUMS AND LIMITATIONS ON COVERAGE AND CLAIMS.—
Section 44306(b) is amended by striking ‘‘air’’ and inserting ‘‘insurance’’.
(d) ENDING EFFECTIVE DATE.—Section 44310 is amended by
striking ‘‘December 31, 2004’’ and inserting ‘‘March 30, 2008’’.
(e) TECHNICAL CORRECTION.—Effective November 19, 2001, section 124(b) of the Aviation and Transportation Security Act (115
Stat. 631) is amended by striking ‘‘to carry out foreign policy’’
and inserting ‘‘to carry out the foreign policy’’.

Effective date.
49 USC 44306.

Subtitle B—Passenger Facility Fees
SEC. 121. LOW-EMISSION AIRPORT VEHICLES AND GROUND SUPPORT
EQUIPMENT.

(a) IN GENERAL.—Section 40117(a)(3) is amended by inserting
at the end the following:
‘‘(G) A project for converting vehicles and ground support equipment used at a commercial service airport to
low-emission technology (as defined in section 47102) or
to use cleaner burning conventional fuels, retrofitting of
any such vehicles or equipment that are powered by a
diesel or gasoline engine with emission control technologies
certified or verified by the Environmental Protection
Agency to reduce emissions, or acquiring for use at a
commercial service airport vehicles and ground support
equipment that include low-emission technology or use
cleaner burning fuels if the airport is located in an air
quality nonattainment area (as defined in section 171(2)
of the Clean Air Act (42 U.S.C. 7501(2))) or a maintenance
area referred to in section 175A of such Act (42 U.S.C.
7505a) and if such project will result in an airport receiving
appropriate emission credits as described in section
47139.’’.
(b) MAXIMUM COST FOR CERTAIN LOW-EMISSION TECHNOLOGY
PROJECTS.—Section 40117(b) is amended by adding at the end
the following:
‘‘(5) MAXIMUM COST FOR CERTAIN LOW-EMISSION TECHNOLOGY PROJECTS.—The maximum cost that may be financed
by imposition of a passenger facility fee under this section

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49 USC 40117
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PUBLIC LAW 108–176—DEC. 12, 2003

for a project described in subsection (a)(3)(G) with respect to
a vehicle or ground support equipment may not exceed the
incremental amount of the project cost that is greater than
the cost of acquiring a vehicle or equipment that is not lowemission and would be used for the same purpose, or the
cost of low-emission retrofitting, as determined by the Secretary.’’.
(c) GROUND SUPPORT EQUIPMENT DEFINED.—Section 40117(a)
is amended—
(1) by redesignating paragraphs (4) and (5) as paragraphs
(5) and (6), respectively; and
(2) by inserting after paragraph (3) the following:
‘‘(4) GROUND SUPPORT EQUIPMENT.—The term ‘ground support equipment’ means service and maintenance equipment
used at an airport to support aeronautical operations and
related activities.’’.
(d) GUIDANCE.—The Secretary, in consultation with the
Administrator of the Environmental Protection Agency, shall issue
guidance determining eligibility of projects, and how benefits to
air quality must be demonstrated, under the amendments made
by this section.
SEC. 122. USE OF FEES TO PAY DEBT SERVICE.

Sections 40117(b) is further amended by adding at the end
the following:
‘‘(6) DEBT SERVICE FOR CERTAIN PROJECTS.—In addition
to the uses specified in paragraphs (1) and (4), the Secretary
may authorize a passenger facility fee imposed under paragraph
(1) or (4) to be used for making payments for debt service
on indebtedness incurred to carry out at the airport a project
that is not an eligible airport-related project if the Secretary
determines that such use is necessary due to the financial
need of the airport.’’.
SEC. 123. STREAMLINING OF THE PASSENGER FACILITY FEE PROGRAM.

(a)
APPLICATION
REQUIREMENTS.—Section
40117(c)
is
amended—
(1) by adding at the end of paragraph (2) the following:
‘‘(E) The agency must include in its application or notice
submitted under subparagraph (A) 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 an opportunity for consultation to an
air carrier or foreign air carrier is deemed to have satisfied
the requirements of this paragraph if the eligible agency limits
such notices and consultations to air carriers and foreign air
carriers that have a significant business interest at the airport.
In the subparagraph, the term ‘significant business interest’
means an air carrier or foreign air carrier that had no less
than 1.0 percent of passenger boardings at the airport in the
prior calendar year, had at least 25,000 passenger boardings
at the airport in the prior calendar year, or provides scheduled
service at the airport.’’;
(2) by redesignating paragraph (3) as paragraph (4);
(3) by inserting after paragraph (2) the following:

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‘‘(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 the following under this paragraph:
‘‘(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 that may be
affected. The public notice may include—
‘‘(i) publication in local newspapers of general circulation;
‘‘(ii) publication in other local media; and
‘‘(iii) posting the notice on the agency’s Internet
website.
‘‘(B) A requirement for submission of public comments no
sooner than 30 days, and no later than 45 days, after the
date of the publication of the notice.
‘‘(C) A requirement that the agency include in its application or notice submitted under subparagraph (A) copies of all
comments received under subparagraph (B).’’; and
(4) in the first sentence of paragraph (4) (as redesignated
by paragraph (2) of this subsection) by striking ‘‘shall’’ and
inserting ‘‘may’’.
(b) PILOT PROGRAM FOR PASSENGER FACILITY FEE AUTHORIZATIONS AT NONHUB AIRPORTS.—Section 40117 is amended by adding
at the end the following:
‘‘(l) PILOT PROGRAM FOR PASSENGER FACILITY FEE AUTHORIZATIONS AT NONHUB AIRPORTS.—
‘‘(1) IN GENERAL.—The Secretary shall establish a pilot
program to test alternative procedures for authorizing eligible
agencies for nonhub airports to impose passenger facility fees.
An eligible agency may impose in accordance with the provisions of this subsection a passenger facility fee under this
section. For purposes of the pilot program, the procedures in
this subsection shall apply instead of the procedures otherwise
provided in this section.
‘‘(2) NOTICE AND OPPORTUNITY FOR CONSULTATION.—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) NOTICE OF INTENTION.—The eligible agency must
submit to the Secretary a notice of intention to impose a passenger facility fee under this subsection. The notice shall
include—
‘‘(A) information that the Secretary may require by
regulation on each project for which authority to impose
a passenger facility fee is sought;
‘‘(B) the amount of revenue from passenger facility
fees that is proposed to be collected for each project; and
‘‘(C) the level of the passenger facility fee that is proposed.
‘‘(4) ACKNOWLEDGEMENT OF RECEIPT AND INDICATION OF
OBJECTION.—The Secretary shall acknowledge receipt of the

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Notice.
Regulations.

Applicability.

Deadline.

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117 STAT. 2502

Deadline.

Deadline.

Deadline.
Federal Register,
publication.
49 USC 40117
note.

PUBLIC LAW 108–176—DEC. 12, 2003

notice and indicate any objection to the imposition of a passenger facility fee under this subsection for any project identified in the notice within 30 days after receipt of the eligible
agency’s notice.
‘‘(5) AUTHORITY TO IMPOSE FEE.—Unless the Secretary
objects within 30 days after receipt of the eligible agency’s
notice, the eligible agency is authorized to impose a passenger
facility fee in accordance with the terms of its notice under
this subsection.
‘‘(6) REGULATIONS.—Not later than 180 days after the date
of enactment of this subsection, the Secretary shall propose
such regulations as may be necessary to carry out this subsection.
‘‘(7) SUNSET.—This subsection shall cease to be effective
beginning on the date that is 3 years after the date of issuance
of regulations to carry out this subsection.
‘‘(8) ACKNOWLEDGEMENT NOT AN ORDER.—An acknowledgement issued under paragraph (4) shall not be considered an
order issued by the Secretary for purposes of section 46110.’’.
(c) CLARIFICATION OF APPLICABILITY OF PFC’S TO MILITARY
CHARTERS.—Section 40117(e)(2) is amended—
(1) by striking the period at the end of subparagraph (C)
and inserting a semicolon;
(2) by striking ‘‘and’’ at the end of subparagraph (D);
(3) by striking the period at the end of subparagraph (E)
and inserting ‘‘; and’’; and
(4) by adding after subparagraph (E) 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 Department
of Defense.’’.
(d) TECHNICAL AMENDMENTS.—Section 40117(a)(3)(C) is
amended—
(1) by striking ‘‘for costs’’ and inserting ‘‘A project for costs’’;
and
(2) by striking the semicolon and inserting a period.
(e) ELIGIBILITY OF AIRPORT GROUND ACCESS TRANSPORTATION
PROJECTS.—Not later than 60 days after the enactment of this
Act, the Administrator of the Federal Aviation Administration shall
publish in the Federal Register the current policy of the Administration, consistent with current law, with respect to the eligibility
of airport ground access transportation projects for the use of passenger facility fees under section 40117 of title 49, United States
Code.
SEC. 124. FINANCIAL MANAGEMENT OF PASSENGER FACILITY FEES.

Section 40117 is further amended by adding at the end the
following:
‘‘(m) FINANCIAL MANAGEMENT OF FEES.—
‘‘(1) HANDLING OF FEES.—A covered air carrier shall segregate in a separate account passenger facility revenue equal
to the average monthly liability for fees collected under this
section by such carrier or any of its agents for the benefit
of the eligible agencies entitled to such revenue.
‘‘(2) TRUST FUND STATUS.—If a covered air carrier or its
agent fails to segregate passenger facility revenue in violation
of the subsection, the trust fund status of such revenue shall

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not be defeated by an inability of any party to identify and
trace the precise funds in the accounts of the air carrier.
‘‘(3) PROHIBITION.—A covered air carrier and its agents
may not grant to any third party any security or other interest
in passenger facility revenue.
‘‘(4) COMPENSATION TO ELIGIBLE ENTITIES.—A covered air
carrier that fails to comply with any requirement of this subsection, or otherwise unnecessarily causes an eligible entity
to expend funds, through litigation or otherwise, to recover
or retain payment of passenger facility revenue to which the
eligible entity is otherwise entitled shall be required to compensate the eligible agency for the costs so incurred.
‘‘(5) INTEREST ON AMOUNTS.—A covered air carrier that
collects passenger facility fees is entitled to receive the interest
on passenger facility fee accounts if the accounts are established
and maintained in compliance with this subsection.
‘‘(6) EXISTING REGULATIONS.—The provisions of section
158.49 of title 14, Code of Federal Regulations, that permit
the commingling of passenger facility fees with other air carrier
revenue shall not apply to a covered air carrier.
‘‘(7) COVERED AIR CARRIER DEFINED.—In this section, the
term ‘covered air carrier’ means an air carrier that files for
chapter 7 or chapter 11 of title 11 bankruptcy protection, or
has an involuntary chapter 7 of title 11 bankruptcy proceeding
commenced against it, after the date of enactment of this subsection.’’.

Subtitle C—AIP Modifications
SEC. 141. AIRFIELD PAVEMENT.

Section 47102(3)(H) is amended by inserting ‘‘nonhub airports
and’’ before ‘‘airports that are not primary airports’’.
SEC. 142. REPLACEMENT OF BAGGAGE CONVEYOR SYSTEMS.

Section 47102(3)(B)(x) is amended by striking the period at
the end and inserting the following: ‘‘; except that such activities
shall be eligible for funding under this subchapter only using
amounts apportioned under section 47114.’’.
SEC. 143. AUTHORITY TO USE CERTAIN FUNDS FOR AIRPORT SECURITY
PROGRAMS AND ACTIVITIES.

Section 308 of the Federal Aviation Reauthorization Act of
1996 (49 U.S.C. 44901 note; 110 Stat. 3253), and the item relating
to such section in the table of contents contained in section 1(b)
of that Act, are repealed.
SEC. 144. GRANT ASSURANCES.

(a) STATUTE OF LIMITATIONS..—Section 47107(l)(5)(A) is
amended by inserting ‘‘or any other governmental entity’’ after
‘‘sponsor’’.
(b) AUDIT CERTIFICATION.—Section 47107(m) is amended—
(1) in paragraph (1) by striking ‘‘promulgate regulations
that’’ and inserting ‘‘include a provision in the compliance
supplement provisions to’’;
(2) in paragraph (1) by striking ‘‘and opinion of the review’’;
and
(3) by striking paragraph (3).

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PUBLIC LAW 108–176—DEC. 12, 2003

SEC. 145. CLARIFICATION OF ALLOWABLE PROJECT COSTS.

Section 47110(b)(1) is amended by inserting before the semicolon at the end ‘‘and any cost of moving a Federal facility impeding
the project if the rebuilt facility is of an equivalent size and type’’.
SEC. 146. APPORTIONMENTS TO PRIMARY AIRPORTS.

(a) IN GENERAL.—Section 47114(c)(1) is amended by adding
at the end the following:
‘‘(F) SPECIAL RULE FOR FISCAL YEARS 2004 AND 2005.—
Notwithstanding subparagraph (A) and the absence of
scheduled passenger aircraft service at an airport, the Secretary may apportion in fiscal years 2004 and 2005 to
the sponsor of the airport an amount equal to the amount
apportioned to that sponsor in fiscal year 2002 or 2003,
whichever amount is greater, if the Secretary finds that—
‘‘(i) the passenger boardings at the airport were
below 10,000 in calendar year 2002 or 2003;
‘‘(ii) the airport had at least 10,000 passenger
boardings and scheduled passenger aircraft service in
either calendar year 2000 or 2001; and
‘‘(iii) the reason that passenger boardings described
in clause (i) were below 10,000 was the decrease in
passengers following the terrorist attacks of September
11, 2001.’’.
(b) SPECIAL RULE FOR TRANSITIONING AIRPORTS.—Section
47114(f)(3) is amended—
(1) in the paragraph heading by striking ‘‘AIRORTS’’ and
inserting ‘‘AIRPORTS’’; and
(2) in subparagraph (B) by striking ‘‘fiscal years 2000
through 2003’’ and inserting ‘‘fiscal year 2004’’.
SEC. 147. CARGO AIRPORTS.

Section 47114(c)(2) is amended—
(1) in the paragraph heading by striking ‘‘ONLY’’; and
(2) in subparagraph (A) by striking ‘‘3 percent’’ and
inserting ‘‘3.5 percent’’.
SEC. 148. CONSIDERATIONS IN MAKING DISCRETIONARY GRANTS.

Section 47115(d) is amended to read as follows:
‘‘(d) CONSIDERATIONS.—
‘‘(1) FOR CAPACITY ENHANCEMENT PROJECTS.—In selecting
a project for a grant to preserve and improve capacity funded
in whole or in part from the fund, the Secretary shall consider—
‘‘(A) the effect that the project will have on overall
national transportation system capacity;
‘‘(B) the benefit and cost of the project, including, in
the case of a project at a reliever airport, the number
of operations projected to be diverted from a primary airport to the reliever airport as a result of the project, as
well as the cost savings projected to be realized by users
of the local airport system;
‘‘(C) the financial commitment from non-United States
Government sources to preserve or improve airport
capacity;
‘‘(D) the airport improvement priorities of the States
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‘‘(E) the projected growth in the number of passengers
or aircraft that will be using the airport at which the
project will be carried out; and
‘‘(F) the ability of the project to foster United States
competitiveness in securing global air cargo activity at
a United States airport.
‘‘(2) FOR ALL PROJECTS.—In selecting a project for a grant
under this section, the Secretary shall consider among other
factors whether—
‘‘(A) funding has been provided for all other projects
qualifying for funding during the fiscal year under this
chapter that have attained a higher score under the numerical priority system employed by the Secretary in administering the fund; and
‘‘(B) the sponsor will be able to commence the work
identified in the project application in the fiscal year in
which the grant is made or within 6 months after the
grant is made, whichever is later.’’.
SEC. 149. FLEXIBLE FUNDING FOR NONPRIMARY AIRPORT APPORTIONMENTS.

(a) PROJECT GRANT AGREEMENTS.—Section 47108(a) is amended
by inserting ‘‘or 47114(d)(3)(A)’’ after ‘‘under section 47114(c)’’.
(b) ALLOWABLE PROJECT COSTS.—Section 47110 is amended—
(1) in subsection (b)(2)(C) by striking ‘‘of this title’’ and
inserting ‘‘or section 47114(d)(3)(A)’’;
(2) in subsection (g)—
(A) by inserting ‘‘or section 47114(d)(3)(A)’’ after ‘‘of
section 47114(c)’’; and
(B) by striking ‘‘of project’’ and inserting ‘‘of the
project’’; and
(3) by adding at the end the following:
‘‘(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 if the Government’s
share of such costs is paid only with funds apportioned to the
airport sponsor under section 47114(d)(3)(A) and if the Secretary
determines that the sponsor has made adequate provision for
financing airside needs of the airport.’’.
(c) WAIVER.—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)(3)(A) if the Secretary agrees to make the waived amount available for a grant
for another public-use airport in the same State or geographical
area as the airport, as determined by the Secretary.’’.
(d) TERMINAL DEVELOPMENT COSTS.—Section 47119(b) is
amended—
(1) by striking ‘‘or’’ at the end of paragraph (3);
(2) by striking the period at the end of paragraph (4)
and inserting ‘‘; or’’; and
(3) by adding at the end the following:
‘‘(5) to a sponsor of a nonprimary airport, any part of
amounts apportioned to the sponsor for the fiscal year under

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117 STAT. 2506

PUBLIC LAW 108–176—DEC. 12, 2003
section 47114(d)(3)(A) for project costs allowable under section
47110(d).’’.

SEC. 150. USE OF APPORTIONED AMOUNTS.

The first sentence of section 47117(b) is amended by striking
‘‘primary airport’’ and all that follows through ‘‘calendar year’’ and
inserting ‘‘nonhub airport or any airport that is not a commercial
service airport’’.
SEC. 151. INCREASE IN APPORTIONMENT FOR, AND FLEXIBILITY OF,
NOISE COMPATIBILITY PLANNING PROGRAMS.

Section 47117(e)(1)(A) is amended—
(1) by striking ‘‘At least 34 percent’’ and inserting ‘‘At
least 35 percent’’;
(2) by striking ‘‘of this title and’’ and inserting a comma;
(3) by striking ‘‘of this title.’’ and inserting ‘‘, for noise
mitigation projects approved in an environmental record of
decision for an airport development project under this title,
for compatible land use planning and projects carried out by
State and local governments under section 47141, and for airport development described in section 47102(3)(F), 47102(3)(K),
or 47102(3)(L) to comply with the Clean Air Act (42 U.S.C.
7401 et seq.).’’; and
(4) by striking ‘‘34 percent requirement’’ and inserting ‘‘35
percent requirement’’.
SEC. 152. PILOT PROGRAM FOR PURCHASE OF AIRPORT DEVELOPMENT RIGHTS.

(a) IN GENERAL.—Subchapter I of chapter 471 is amended
by adding at the end the following:
‘‘§ 47138. Pilot program for purchase of airport development
rights
‘‘(a) IN GENERAL.—The Secretary of Transportation shall establish a pilot program to support the purchase, by a State or political
subdivision of a State, of development rights associated with, or
directly affecting the use of, privately owned public use airports
located in that State. Under the program, the Secretary may make
a grant to a State or political subdivision of a State from funds
apportioned under section 47114 for the purchase of such rights.
‘‘(b) GRANT REQUIREMENTS.—
‘‘(1) IN GENERAL.—The Secretary may not make a grant
under subsection (a) unless the grant is made—
‘‘(A) to enable the State or political subdivision to purchase development rights in order to ensure that the airport
property will continue to be available for use as a public
airport; and
‘‘(B) subject to a requirement that the State or political
subdivision acquire an easement or other appropriate covenant requiring that the airport shall remain a public
use airport in perpetuity.
‘‘(2) MATCHING REQUIREMENT.—The amount of a grant
under the program may not exceed 90 percent of the costs
of acquiring the development rights.
‘‘(c) GRANT STANDARDS.—The Secretary shall prescribe standards for grants under subsection (a), including—
‘‘(1) grant application and approval procedures; and

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‘‘(2) requirements for the content of the instrument
recording the purchase of the development rights.
‘‘(d) RELEASE OF PURCHASED RIGHTS AND COVENANT.—Any
development rights purchased under the program shall remain
the property of the State or political subdivision unless the Secretary approves the transfer or disposal of the development rights
after making a determination that the transfer or disposal of that
right is in the public interest.
‘‘(e) LIMITATION.—The Secretary may not make a grant under
the pilot program for the purchase of development rights at more
than 10 airports.’’.
(b) CONFORMING AMENDMENT.—The analysis for chapter 471
is amended by inserting after the item relating to section 47137
the following:
‘‘47138. Pilot program for purchase of airport development rights.’’.
SEC. 153. MILITARY AIRPORT PROGRAM.

Section 47118 is amended—
(1) in subsection (e) by striking ‘‘Not more than $7,000,000
for each airport from amounts the Secretary distributes under
section 47115 of this title for a fiscal year is available’’ and
inserting ‘‘From amounts the Secretary distributes to an airport
under section 47115, $10,000,000 for each of fiscal years 2004
and 2005, and $7,000,000 for each fiscal year thereafter, is
available’’;
(2) in subsection (f) by striking ‘‘Not more than a total
of $7,000,000 for each airport from amounts the Secretary
distributes under section 47115 of this title for fiscal years
beginning after September 30, 1992, is available’’ and inserting
the following:
‘‘(1) CONSTRUCTION.—From amounts the Secretary distributes to an airport under section 47115, $10,000,000 for each
of fiscal years 2004 and 2005, and $7,000,000 for each fiscal
year thereafter, is available’’; and
(3) by adding at the end of subsection (f) the following:
‘‘(2) REIMBURSEMENT.—Upon approval of the Secretary, the
sponsor of a current or former military airport the Secretary
designates under this section may use an amount apportioned
under section 47114, or made available under section 47115
or 47117(e)(1)(B), to the airport for reimbursement of costs
incurred by the airport in fiscal years 2003 and 2004 for
construction, improvement, or repair described in paragraph
(1).’’.
SEC. 154. AIRPORT SAFETY DATA COLLECTION.

Section 47130 is amended to read as follows:
‘‘§ 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. In the event that a grant is provided under
this section, the United States Government’s share of the cost
of the data collection shall be 100 percent.’’.

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PUBLIC LAW 108–176—DEC. 12, 2003

SEC. 155. AIRPORT PRIVATIZATION PILOT PROGRAM.

Deadline.

49 USC 47134
note.

(a) IN GENERAL.—Section 47134(b)(1) is amended—
(1) in subparagraph (A) by striking clauses (i) and (ii)
and inserting the following:
‘‘(i) in the case of a primary airport, by at least
65 percent of the scheduled air carriers serving the
airport and by scheduled and nonscheduled air carriers
whose aircraft landing at the airport during the preceding calendar year, had a total landed weight during
the preceding calendar year of at least 65 percent
of the total landed weight of all aircraft landing at
the airport during such year; or
‘‘(ii) in the case of a nonprimary airport, by the
Secretary after the airport has consulted with at least
65 percent of the owners of aircraft based at that
airport, as determined by the Secretary.’’;
(2) by redesignating subparagraph (B) as subparagraph
(C); and
(3) by inserting after subparagraph (A) the following:
‘‘(B) OBJECTION TO EXEMPTION.—An air carrier shall
be deemed to have approved a sponsor’s application for
an exemption under subparagraph (A) unless the air carrier
has submitted an objection, in writing, to the sponsor
within 60 days of the filing of the sponsor’s application
with the Secretary, or within 60 days of the service of
the application upon that air carrier, whichever is later.’’.
(b) EFFECTIVE DATE.—The amendments made by subsection
(a) shall not affect any application submitted before the date of
enactment of this Act.
SEC. 156. INNOVATIVE FINANCING TECHNIQUES.

The first sentence of section 47135(a) is amended by inserting
after ‘‘approve’’ the following: ‘‘, after the date of enactment of
the Vision 100—Century of Aviation Reauthorization Act,’’.
SEC. 157. AIRPORT SECURITY PROGRAM.

Section 47137 is amended—
(1) by redesignating subsections (e) and (f) as subsections
(f) and (g), respectively; and
(2) by inserting after subsection (d) the following:
‘‘(e) ADMINISTRATION.—The Secretary, in cooperation with the
Secretary of Homeland Security, shall administer the program
authorized by this section.’’.
SEC. 158. EMISSION CREDITS FOR AIR QUALITY PROJECTS.

(a) EMISSIONS CREDIT.—Subchapter I of chapter 471 is further
amended by adding at the end the following:
‘‘§ 47139. Emission credits for air quality projects
‘‘(a) IN GENERAL.—The Administrator of the Environmental
Protection Agency, in consultation with the Secretary of Transportation, shall issue guidance on how to ensure that airport sponsors
receive appropriate emission reduction credits for carrying out
projects described in sections 40117(a)(3)(G), 47102(3)(F),
47102(3)(K), and 47102(3)(L). Such guidance shall include, at a
minimum, the following conditions:
‘‘(1) The provision of credits is consistent with the Clean
Air Act (42 U.S.C. 7402 et seq.).

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‘‘(2) Credits generated by the emissions reductions are kept
by the airport sponsor and may only be used for purposes
of any current or future general conformity determination under
the Clean Air Act or as offsets under the Environmental Protection Agency’s new source review program for projects on the
airport or associated with the airport.
‘‘(3) Credits are calculated and provided to airports on
a consistent basis nationwide.
‘‘(4) Credits are provided to airport sponsors in a timely
manner.
‘‘(5) The establishment of a method to assure the Secretary
that, for any specific airport project for which funding is being
requested, the appropriate credits will be granted.
‘‘(b) ASSURANCE OF RECEIPT OF CREDITS.—As a condition for
making a grant for a project described in section 47102(3)(F),
47102(3)(K), 47102(3)(L), or 47140 or as a condition for granting
approval to collect or use a passenger facility fee for a project
described in section 40117(a)(3)(G), 47103(3)(F), 47102(3)(K),
47102(3)(L), or 47140, 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
section.
‘‘(c) PREVIOUSLY APPROVED PROJECTS.—The Administrator of
the Environmental Protection Agency, in consultation with the Secretary, shall determine how to provide appropriate emissions credits
to airport projects previously approved under section 47136 consistent with the guidance and conditions specified in subsection
(a).
‘‘(d) STATE AUTHORITY UNDER CAA.—Nothing in this section
shall be construed as overriding existing State law or regulation
pursuant to section 116 of the Clean Air Act (42 U.S.C. 7416).’’.
(b) CONFORMING AMENDMENT.—The analysis for chapter 471
is further amended by inserting after the item relating to section
47138 the following:
‘‘47139. Emission credits for air quality projects.’’.
SEC. 159. LOW-EMISSION AIRPORT VEHICLES AND INFRASTRUCTURE.

(a) 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:
‘‘§ 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
made available under section 48103 to retrofit existing eligible
airport ground support equipment that burns conventional fuels
to achieve lower emissions utilizing emission control technologies
certified or verified by the Environmental Protection Agency.
‘‘(b) LOCATION IN AIR QUALITY NONATTAINMENT OR MAINTENANCE AREAS.—A commercial service airport shall be eligible for
participation in the pilot program only if the airport is located
in an air quality nonattainment area (as defined in section 171(2)

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of the Clean Air Act (42 U.S.C. 7501(2))) or a maintenance area
referred to in section 175A of such Act (42 U.S.C. 7505a).
‘‘(c) SELECTION CRITERIA.—In selecting from among applicants
for participation in the pilot program, the Secretary shall give
priority consideration to 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
the 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.—In this section, the term
‘eligible equipment’ means ground service or maintenance equipment that is located at the airport, is used to support aeronautical
and related activities at the airport, and will remain in operation
at the airport for the life or useful life of the equipment, whichever
is earlier.’’.
(2) CONFORMING AMENDMENT.—The 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.’’.
(b) ACTIVITIES ADDED TO DEFINITION OF AIRPORT DEVELOPMENT.—
(1) IN GENERAL.—Section 47102(3) is amended—

49 USC 47102
note.

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(A) by striking subparagraphs (J), (K), and (L) and
redesignating subparagraph (M) as subparagraph (J); and
(B) 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 175A of the Clean Air Act
(42 U.S.C. 7501(2); 7505a) and if such project will result
in an airport receiving appropriate emission credits, as
described in section 47139.
‘‘(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 175A
of the Clean Air Act (42 U.S.C. 7501(2); 7505a) and if
such project will result in an airport receiving appropriate
emission credits as described in section 47139.’’.
(2) GUIDANCE.—
(A) ELIGIBLE LOW-EMISSION MODIFICATIONS AND
IMPROVEMENTS.—The Secretary of Transportation, in consultation with the Administrator of the Environmental
Protection Agency, shall issue guidance describing eligible
low-emission modifications and improvements, and stating

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how airport sponsors will demonstrate benefits, under section 47102(3)(K) of title 49, United States Code, as added
by this subsection.
(B) ELIGIBLE LOW-EMISSION VEHICLE TECHNOLOGY.—
The Secretary, in consultation with the Administrator, shall
issue guidance describing eligible low-emission vehicle technology, and stating how airport sponsors will demonstrate
benefits, under section 47102(3)(L) of title 49, United States
Code, as added by this subsection.
(c) ALLOWABLE PROJECT COST.—Section 47110(b) is amended—
(1) by striking ‘‘and’’ at the end of paragraph (4);
(2) by striking the period at the end of paragraph (5)
and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(6) if the cost is for a project not described in section
47102(3) for acquiring for use at a commercial service airport
vehicles and ground support equipment owned by an airport
that include low-emission technology, but only to the extent
of the incremental cost of equipping such vehicles or equipment
with low-emission technology, as determined by the Secretary.’’.
(d) LOW-EMISSION TECHNOLOGY EQUIPMENT.—Section 47102 (as
amended by section 801 of this Act) is further amended by inserting
after paragraph (10) the following:
‘‘(11) ‘low-emission technology’ means technology for
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 nonpetroleum based,
as defined by the Department of Energy, but not excluding
hybrid systems or natural gas powered vehicles.’’.
SEC. 160. COMPATIBLE LAND USE PLANNING AND PROJECTS BY STATE
AND LOCAL GOVERNMENTS.

(a) IN GENERAL.—Subchapter I of chapter 471 is further
amended by adding at the end the following:
‘‘§ 47141. Compatible land use planning and projects by State
and local governments
‘‘(a) IN GENERAL.—The Secretary of Transportation may make
grants, from amounts set aside under section 47117(e)(1)(A), to
States and units of local government for development and
implementation of land use compatibility plans and implementation
of land use compatibility projects resulting from those plans for
the purposes of making the use of land areas around large hub
airports and medium hub airports compatible with aircraft operations. The Secretary may make a grant under this section for
a land use compatibility plan or a project resulting from such
plan only if—
‘‘(1) the airport operator has not submitted a noise compatibility program to the Secretary under section 47504 or has
not updated such program within the preceding 10 years; and
‘‘(2) the land use plan or project meets the requirements
of this section.
‘‘(b) ELIGIBILITY.—In order to receive a grant under this section,
a State or unit of local government must—

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‘‘(1) have the authority to plan and adopt land use control
measures, including zoning, in the planning area in and around
a large or medium hub airport;
‘‘(2) enter into an agreement with the airport owner or
operator that the development of the land use compatibility
plan will be done cooperatively; and
‘‘(3) provide written assurance to the Secretary that it
will achieve, to the maximum extent possible, compatible land
uses consistent with Federal land use compatibility criteria
under section 47502(3) and that those compatible land uses
will be maintained.
‘‘(c) ASSURANCES.—The Secretary shall require a State or unit
of local government to which a grant may be made under this
section for a land use plan or a project resulting from such plan
to provide—
‘‘(1) assurances satisfactory to the Secretary that the plan—
‘‘(A) is reasonably consistent with the goal of reducing
existing noncompatible land uses and preventing the
introduction of additional noncompatible land uses;
‘‘(B) addresses ways to achieve and maintain compatible land uses, including zoning, building codes, and any
other land use compatibility measures under section
47504(a)(2) that are within the authority of the State or
unit of local government to implement;
‘‘(C) uses noise contours provided by the airport operator that are consistent with the airport operation and
planning, including any noise abatement measures adopted
by the airport operator as part of its own noise mitigation
efforts;
‘‘(D) does not duplicate, and is not inconsistent with,
the airport operator’s noise compatibility measures for the
same area; and
‘‘(E) has been approved jointly by the airport owner
or operator and the State or unit of local government;
and
‘‘(2) such other assurances as the Secretary determines
to be necessary to carry out this section.
‘‘(d) GUIDELINES.—The Secretary shall establish guidelines to
administer this section in accordance with the purposes and conditions described in this section. The Secretary may require a State
or unit of local government to which a grant may be made under
this section to provide progress reports and other information as
the Secretary determines to be necessary to carry out this section.
‘‘(e) ELIGIBLE PROJECTS.—The Secretary may approve a grant
under this section to a State or unit of local government for a
project resulting from a land use compatibility plan only if the
Secretary is satisfied that the project is consistent with the guidelines established by the Secretary under this section, the State
or unit of local government has provided the assurances required
by this section, the State or unit of local government has implemented (or has made provision to implement) those elements of
the plan that are not eligible for Federal financial assistance, and
that the project is not inconsistent with applicable Federal Aviation
Administration standards.
‘‘(f) SUNSET.—This section shall not be in effect after September
30, 2007.’’.

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(b) CONFORMING AMENDMENT.—The analysis of subchapter I
of chapter 471 is further amended by adding at the end the following:
‘‘47141. Compatible land use planning and projects by State and local governments.’’.
SEC. 161. TEMPORARY INCREASE IN GOVERNMENT SHARE OF CERTAIN
AIP PROJECT COSTS.

49 USC 47109
note.

Notwithstanding section 47109(a) of title 49, United States
Code, the Government’s share of allowable project costs for a grant
made in each of fiscal years 2004 through 2007 under chapter
471 of that title for a project described in paragraph (2) or (3)
of that section shall be 95 percent.
SEC. 162. SHARE OF AIRPORT PROJECT COSTS.

(a) IN GENERAL.—Section 47109 is amended—
(1) by redesignating subsection (c) as subsection (d); and
(2) by inserting after subsection (b) the following:
‘‘(c) GRANDFATHER RULE.—
‘‘(1) IN GENERAL.—In the case of any project approved after
September 30, 2003, at a small hub airport or nonhub airport
that is located in a State containing unappropriated and unreserved public lands and nontaxable Indian lands (individual
and tribal) of more than 5 percent of the total area of all
lands in the State, the Government’s share of allowable costs
of the project shall be increased by the same ratio as the
basic share of allowable costs of a project divided into the
increased (Public Lands States) share of allowable costs of
a project as shown on documents of the Federal Aviation
Administration dated August 3, 1979, at airports for which
the general share was 80 percent on August 3, 1979. This
subsection shall apply only if—
‘‘(A) the State contained unappropriated and unreserved public lands and nontaxable Indian lands of more
than 5 percent of the total area of all lands in the State
on August 3, 1979; and
‘‘(B) the application under subsection (b), does not
increase the Government’s share of allowable costs of the
project.
‘‘(2) LIMITATION.—The Government’s share of allowable
project costs determined under this subsection shall not exceed
the lesser of 93.75 percent or the highest percentage Government share applicable to any project in any State under subsection (b).’’.
(b) CONFORMING AMENDMENT.—Subsection (a) of section 47109
is amended by striking ‘‘Except as provided in subsection (b)’’ and
inserting ‘‘Except as provided in subsection (b) or subsection (c)’’.

Applicability.

SEC. 163. FEDERAL SHARE FOR PRIVATE OWNERSHIP OF AIRPORTS.

Section 47109(a)(4) is amended by striking ‘‘40 percent’’ and
inserting ‘‘70 percent’’.
SEC. 164. DISPOSITION OF LAND ACQUIRED FOR NOISE COMPATIBILITY PURPOSES.

Section 47107(c)(2)(A)(iii) is amended by inserting before the
semicolon at the end the following: ‘‘, including the purchase of
nonresidential buildings or property in the vicinity of residential

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buildings or property previously purchased by the airport as part
of a noise compatibility program’’.
SEC. 165. HANGAR CONSTRUCTION GRANT ASSURANCE.

Section 47107(a) is amended—
(1) by striking ‘‘and’’ at the end of paragraph (19);
(2) by striking the period at the end of paragraph (20)
and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(21) if the airport owner or operator and a person who
owns an aircraft agree that a hangar is to be constructed
at the airport for the aircraft at the aircraft owner’s expense,
the airport owner or operator will grant to the aircraft owner
for the hangar a long-term lease that is subject to such terms
and conditions on the hangar as the airport owner or operator
may impose.’’.
SEC. 166. TERMINAL DEVELOPMENT COSTS.

Section 47119(a) is amended to read as follows:
‘‘(a) REPAYING BORROWED MONEY.—
‘‘(1) TERMINAL DEVELOPMENT COSTS INCURRED AFTER JUNE
30, 1970, AND BEFORE JULY 12, 1976.—An amount apportioned
under section 47114 and made available to the sponsor of
a commercial service airport at which terminal development
was carried out after June 30, 1970, and before July 12, 1976,
is available to repay immediately money borrowed and used
to pay the costs for such terminal development if those costs
would be allowable project costs under section 47110(d) if they
had been incurred after September 3, 1982.
‘‘(2) TERMINAL DEVELOPMENT COSTS INCURRED BETWEEN
JANUARY 1, 1992, AND OCTOBER 31, 1992.—An amount apportioned under section 47114 and made available to the sponsor
of a nonhub airport at which terminal development was carried
out between January 1, 1992, and October 31, 1992, is available
to repay immediately money borrowed and to pay the costs
for such terminal development if those costs would be allowable
project costs under section 47110(d).
‘‘(3) TERMINAL DEVELOPMENT COSTS AT PRIMARY AIRPORTS.—An amount apportioned under section 47114 or available under subsection (b)(3) to a primary airport—
‘‘(A) that was a nonhub airport in the most recent
year used to calculate apportionments under section 47114;
‘‘(B) that is a designated airport under section 47118
in fiscal year 2003; and
‘‘(C) at which terminal development is carried out
between January 2003 and August 2004,
is available to repay immediately money borrowed and used
to pay the costs for such terminal development if those costs
would be allowable project costs under section 47110(d).
‘‘(4) CONDITIONS FOR GRANT.—An amount is available for
a grant under this subsection only if—
‘‘(A) the sponsor submits the certification required
under section 47110(d);
‘‘(B) the Secretary of Transportation decides that using
the amount to repay the borrowed money will not defer
an airport development project outside the terminal area
at that airport; and

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‘‘(C) amounts available for airport development under
this subchapter will not be used for additional terminal
development projects at the airport for at least 1 year
beginning on the date the grant is used to repay the borrowed money.
‘‘(5) APPLICABILITY OF CERTAIN LIMITATIONS.—A grant
under this subsection shall be subject to the limitations in
subsection (b)(1) and (2).’’.

Subtitle D—Miscellaneous
SEC. 181. DESIGN-BUILD CONTRACTING.

(a) IN GENERAL.—Subchapter I of chapter 471 is further
amended by adding at the end the following:
‘‘§ 47142. Design-build contracting
‘‘(a) IN GENERAL.—The Administrator of the Federal Aviation
Administration 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 3 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 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 analysis for chapter 471
is further amended by inserting after the item relating to section
47141 the following:
‘‘47142. Design-build contracting.’’.
SEC. 182. PILOT PROGRAM FOR INNOVATIVE FINANCING OF AIR
TRAFFIC CONTROL EQUIPMENT.

49 USC 44502
note.

(a) IN GENERAL.—In order to test the cost effectiveness and
feasibility of long-term financing of modernization of major air

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traffic control systems, the Administrator of the Federal Aviation
Administration may establish a pilot program to test innovative
financing techniques through amending, subject to section 1341
of title 31, United States Code, a contract for more than one,
but not more than 20, fiscal years to purchase and install air
traffic control equipment for the Administration. Such amendments
may be for more than one, but not more than 10, fiscal years.
(b) CANCELLATION.—A contract described in subsection (a) may
include a cancellation provision if the Administrator determines
that such a provision is necessary and in the best interest of
the United States. Any such provision shall include a cancellation
liability schedule that covers reasonable and allocable costs incurred
by the contractor through the date of cancellation plus reasonable
profit, if any, on those costs. Any such provision shall not apply
if the contract is terminated by default of the contractor.
(c) CONTRACT PROVISIONS.—If feasible and practicable for the
pilot program, the Administrator may make an advance contract
provision to achieve economic-lot purchases and more efficient
production rates.
(d) LIMITATION.—The Administrator may not amend a contract
under this section until the program for the terminal automation
replacement systems has been rebaselined in accordance with the
acquisition management system of the Administration.
(e) ANNUAL REPORTS.—At the end of each fiscal year during
the term of the pilot program, the Administrator shall transmit
to the Committee on Commerce, Science, and Transportation of
the Senate and the Committee on Transportation and Infrastructure
of the House of Representatives a report on how the Administrator
has implemented in such fiscal year the pilot program, the number
and types of contracts or contract amendments that are entered
into under the program, and the program’s cost effectiveness.
(f) FUNDING.—Out of amounts appropriated under section 48101
for fiscal year 2004, such sums as may be necessary shall be
available to carry out this section.
SEC. 183. 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
equipment and software.
‘‘(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.
‘‘(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) to carry out the program.

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‘‘(e) DEFINITIONS.—In this section, the following definitions
apply:
‘‘(1) ELIGIBLE PROJECT.—The term ‘eligible project’ means
a project to purchase equipment or software relating to the
Nation’s air traffic control system that is certified or approved
by the Administrator of the Federal Aviation Administration
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, and lighting improvements;
‘‘(B) automation tools to effect improvements in airport
capacity, including passive final approach spacing tools
and traffic management advisory equipment; and
‘‘(C) equipment and software that enhance airspace
control procedures 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, a
project sponsor 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. The guidelines
shall not be subject to administrative rulemaking requirements
under subchapter II of chapter 5 of title 5.’’.
(b) CONFORMING AMENDMENT.—The analysis for chapter 445
is amended by adding at the end the following:
‘‘44517. Program to permit cost sharing of air traffic modernization projects.’’.
SEC. 184. FACILITIES AND EQUIPMENT REPORTS.

(a) BIANNUAL REPORTS.—Beginning 180 days after the date
of enactment of this 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.
(b) SUNSET PROVISION.—This section shall cease to be effective
beginning on the date that is 4 years after the date of enactment
of this Act.

49 USC 48101
note.
Effective date.

SEC. 185. CIVIL PENALTY FOR PERMANENT CLOSURE OF AN AIRPORT
WITHOUT PROVIDING SUFFICIENT NOTICE.

(a) IN GENERAL.—Chapter 463 is amended by adding at the
end the following:

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117 STAT. 2518

Deadline.

Federal Register,
publication.

PUBLIC LAW 108–176—DEC. 12, 2003

‘‘§ 46319. Permanent closure of an airport without providing
sufficient notice
‘‘(a) PROHIBITION.—A public agency (as defined in section 47102)
may not permanently close an airport listed in the national plan
of integrated airport systems under section 47103 without providing
written notice to the Administrator of the Federal Aviation Administration at least 30 days before the date of the closure.
‘‘(b) PUBLICATION OF NOTICE.—The Administrator shall publish
each notice received under subsection (a) in the Federal Register.
‘‘(c) CIVIL PENALTY.—A public agency violating subsection (a)
shall be liable for a civil penalty of $10,000 for each day that
the airport remains closed without having given the notice required
by this section.’’.
(b) CONFORMING AMENDMENT.—The analysis for chapter 463
is amended by adding at the end the following:
‘‘46319. Permanent closure of an airport without providing sufficient notice.’’.
SEC. 186. MIDWAY ISLAND AIRPORT.

(a) FINDINGS.—Congress finds that the continued operation of
the Midway Island Airport in accordance with the standards of
the Federal Aviation Administration applicable to commercial airports is critical to the safety of commercial, military, and general
aviation in the mid-Pacific Ocean region.
(b) MEMORANDUM OF UNDERSTANDING ON SALE OF AIRCRAFT
FUEL.—The Secretaries of Transportation, Defense, Interior, and
Homeland Security shall enter into a memorandum of understanding to facilitate the sale of aircraft fuel on Midway Island
at a price that will generate sufficient revenue to improve the
ability of the airport to operate on a self-sustaining basis in accordance with the standards of the Federal Aviation Administration
applicable to commercial airports. The memorandum shall also
address the long-range potential of promoting tourism as a means
to generate revenue to operate the airport.
(c) TRANSFER OF NAVIGATION AIDS AT MIDWAY ISLAND AIRPORT.—The Midway Island Airport may transfer, without consideration, to the Administrator the navigation aids at the airport.
The Administrator shall accept the navigation aids and operate
and maintain the navigation aids under criteria of the Administrator.
(d) FUNDING TO SECRETARY OF THE INTERIOR FOR MIDWAY
ISLAND AIRPORT.—The Secretary of Transportation may enter into
a reimbursable agreement with the Secretary of the Interior for
the purpose of funding airport development, as defined in section
47102(3) of title 49, United States Code, at Midway Island Airport
for fiscal years ending before October 1, 2007, from amounts available in the discretionary fund established by section 47115 of such
title. The maximum obligation under the agreement for any such
fiscal year shall be $2,500,000.
SEC. 187. INTERMODAL PLANNING.

Section 47106(c)(1)(A) is amended—
(1) by striking ‘‘and’’ at the end of clause (i);
(2) by adding ‘‘and’’ at the end of clause (ii); and
(3) by adding at the end the following:
‘‘(iii) with respect to an airport development project
involving the location of an airport, runway, or major runway extension at a medium or large hub airport, the airport

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117 STAT. 2519

sponsor has made available to and has provided upon
request to the metropolitan planning organization in the
area in which the airport is located, if any, a copy of
the proposed amendment to the airport layout plan to
depict the project and a copy of any airport master plan
in which the project is described or depicted;’’.
SEC. 188. MARSHALL ISLANDS, MICRONESIA, AND PALAU.

Section 47115 is amended by adding at the end the following:
‘‘(j) MARSHALL ISLANDS, MICRONESIA, AND PALAU.—For fiscal
years 2004 through 2007, the sponsors of airports located in the
Republic of the Marshall Islands, Federated States of Micronesia,
and Republic of Palau shall be eligible for grants under this section
and section 47116.’’.
SEC. 189. LIMITATION ON APPROVAL OF CERTAIN PROGRAMS.

Section 47504(b) is amended by adding at the end the following:
‘‘(4) The Secretary shall not approve in fiscal years 2004
through 2007 a program submitted under subsection (a) if the
program requires the expenditure of funds made available under
section 48103 for mitigation of aircraft noise less than 65 DNL.’’.
SEC. 190. CONVEYANCE OF AIRPORT.

Alaska.

(a) OFFER OF CONVEYANCE.—Subject to the requirements of
this section, the Chaluka Corporation is hereby offered ownership
of the surface estate in the former Nikolski Radio Relay Site on
Umnak Island, Alaska, and the Aleut Corporation is hereby offered
the subsurface estate of that Site, in exchange for relinquishment
by the Chaluka Corporation and the Aleut Corporation of Lot 1,
Section 14, Township 81 South, Range 133 West, Seward Meridian,
Alaska.
(b) ACCEPTANCE AND RELINQUISHMENT.—
(1) IN GENERAL.—The Secretary of the Interior shall convey
the land as provided in subsection (c) if the Chaluka Corporation and the Aleut Corporation take the actions specified in
paragraphs (2) and (3), respectively.
(2) CHALUKA CORPORATION.—As a condition for conveyance
under subsection (c), the Chaluka Corporation shall notify the
Secretary of the Interior within 180 days after the date of
enactment of this Act that, by means of a legally binding
resolution of the Board of Directors, the Chaluka Corporation—
(A) accepts the offer under subsection (a);
(B) confirms that the area surveyed by the Bureau
of Land Management for the purpose of fulfilling the
Chaluka Corporation’s final entitlements under sections
12(a) and 12(b) of the Alaska Native Claims Settlement
Act (43 U.S.C. 1611(a) and (b)), identified as Group Survey
Number 773, accurately represents the Chaluka Corporation’s final, irrevocable Alaska Native Claims Settlement
Act priorities and entitlements unless any tract in Group
Survey Number 773 is ultimately not conveyed as the
result of an appeal; and
(C) relinquishes Lot 1, Section 14, Township 81 South,
Range 133 West, Seward Meridian, Alaska, which will
be charged against the Chaluka Corporation’s final entitlement under section 12(b) of the Alaska Native Claims
Settlement Act (43 U.S.C. 1611(b)).

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Deadline.

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117 STAT. 2520
Notification.
Deadline.

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PUBLIC LAW 108–176—DEC. 12, 2003

(3) ALEUT CORPORATION.—As a condition for the conveyance
under subsection (c), the Aleut Corporation shall notify the
Secretary of the Interior within 180 days after the date of
enactment of this Act that, by means of a legally binding
resolution of the Board of Directors, accompanied by the written
legal opinion of counsel as to the legal sufficiency of the Board
of Directors’ action, the Aleut Corporation—
(A) accepts the offer under subsection (a); and
(B) relinquishes all rights to Lot 1, Section 14, Township 81 South, Range 133 West, Seward Meridian, Alaska.
(c) REQUIREMENT TO CONVEY.—
(1) CONVEYANCE.—Notwithstanding the existence of Public
Land Order 2374, upon receipt from the Chaluka Corporation
and from the Aleut Corporation of their acceptances made
in accordance with the requirements of subsections (b)(2) and
(b)(3), respectively, of the offer under subsection (a), the Secretary of the Interior shall convey to the Chaluka Corporation
the surface estate, and to the Aleut Corporation the subsurface
estate, of—
(A) Phase I lands as soon as practicable; and
(B) each parcel of Phase II lands upon completion
of environmental restoration of Phase II lands in accordance with applicable law.
(2) PHASE I LIABILITY LIMIT.—Notwithstanding section 107
of the Comprehensive Environmental Response, Compensation,
and Liability Act of 1980 (42 U.S.C. 9607), neither the Chaluka
Corporation nor the Aleut Corporation shall be subject to any
liability for—
(A) the presence or release of a hazardous substance,
as that term is defined by section 101(14) of that Act
(16 U.S.C. 9601(14)), on Phase I lands or the presence
of solid waste on Phase I lands, which predates conveyance
of those lands to the Chaluka Corporation and the Aleut
Corporation pursuant to this section; or
(B) any release, from any of the hazardous substances
or solid wastes referred to in subparagraph (A), following
conveyance of Phase I lands under this section, so long
as the presence of or releases from those hazardous substances or solid wastes are not the result of actions by
the Chaluka Corporation or the Aleut Corporation.
(3) CONTINUED ACCESS OVER HILL AND BEACH STREETS.—
The surface estate conveyed under paragraph (1) shall be subject to the public’s right of access over Hill and Beach Streets,
located on Tract B of United States Survey 4904.
(d) TREATMENT AS ANCSA LANDS.—Conveyances made under
subsection (c) shall be considered to be conveyances under the
Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.),
and are subject to the provisions of that Act except sections 14(c)(3),
14(c)(4), and 17(b)(3) (43 U.S.C. 1613(c)(3), 1613(c)(4), and
1616(b)(3)).
(e) AUTHORITY TO CONVEY CERTAIN OTHER LANDS.—The Secretary of the Interior shall at no cost to the recipient convey ownership of—
(1) an estate in fee simple in—

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117 STAT. 2521

(A) each of Lots 1, 2, 5, 6, and 9 of Tract B of Amended
United States Survey 4904 that is the subject of an Aleutian Housing Authority mutual help occupancy agreement,
to the Aleutian Housing Authority; and
(B) the remainder of such Lots to the current occupants; and
(2) an estate in fee simple in the Nikolski powerhouse
land, to—
(A) the Indian Reorganization Act Tribal Government
for the Native Village of Nikolski, upon completion of the
environmental restoration described in subsection (f), if
after the restoration the powerhouse continues to be located
on the Nikolski powerhouse land; or
(B) the surface estate to the Chaluka Corporation and
the subsurface estate to the Aleut Corporation, if after
the restoration, the Nikolski powerhouse is no longer
located on the Nikolski powerhouse land. –
(f) RESTORATION OF POWERHOUSE LAND.—The Denali Commission, in consultation with the appropriate agency of the State of
Alaska, is authorized to arrange for environmental restoration,
in accordance with applicable law, of the areas on, beneath, and
adjacent to the Nikolski powerhouse land that are contaminated
as a result of powerhouse operations and activities.
(g) ACCESS.—As a condition of the conveyance of land under
subsection (c), the Chaluka Corporation shall permit the United
States Government, and its agents, employees, and contractors,
to have unrestricted access to the airfield at Nikolski in perpetuity
for site investigation, restoration, remediation, and environmental
monitoring of the former Nikolski Radio Relay Site and reasonable
access to that airfield, and to other land conveyed under this section,
for any activity associated with management of lands owned by
the United States and for other governmental purposes without
cost to the Government.
(h) SURVEY REQUIREMENTS.—
(1) BLM SURVEYS.—The Bureau of Land Management is
not required to conduct additional on-the-ground surveys as
a result of conveyances under this section. The patent to the
Chaluka Corporation may be based on protracted section lines
and lotting where relinquishment under subsection (b)(2)(C)
results in a change to the Chaluka Corporation’s final boundaries.
(2) MONUMENTATION.—No additional monumentation is
required to complete those final boundaries.
(i) AUTHORIZATION OF APPROPRIATIONS.—
(1) FEDERAL AGENCIES.—There is authorized to be appropriated to the Department of the Interior and other appropriate
agencies such sums as are necessary to carry out the provisions
of this section.
(2) POWERHOUSE LAND RESTORATION.—There is authorized
to be appropriated $1,500,000 to reimburse the appropriate
State of Alaska agency for costs required for environmental
restoration of the Nikolski powerhouse land, in accordance with
applicable law.
(j) TERMINATION.—This section shall cease to be effective if
either the Chaluka Corporation or the Aleut Corporation affirmatively rejects the offer under subsection (a) or if after 180 days
following the date of enactment of this Act either corporation has

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117 STAT. 2522

PUBLIC LAW 108–176—DEC. 12, 2003

not taken the actions specified in subsection (b)(2) or (b)(3), respectively.
(k) DEFINITIONS.—In this section, the following definitions
apply:
(1) The term ‘‘Aleut Corporation’’ means the regional corporation established under the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.) for the region in which
the Native Village of Nikolski, Alaska, is located.
(2) The term ‘‘Chaluka Corporation’’ means the village corporation established under the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.) for the Native Village of
Nikolski, Alaska.
(3) The term ‘‘former Nikolski Radio Relay Site’’ means
the portions of Tracts A, B, and C of Public Land Order 2374
that are surveyed as Tracts 37, 37A, 38, 39, and 39A of Township 83 South, Range 136 West, Seward Meridian, Alaska,
and Tract B of United States Survey 4904, Alaska, except—
(A) Lots 1, 2, 5, 6, and 9 of Tract B of Amended
United States Survey 4904; and
(B) the Nikolski powerhouse land.
(4) The term ‘‘Nikolski powerhouse land’’ means the parcel
of land upon which is located the power generation building
for supplying power to the Native Village of Nikolski, the
boundaries of which are described generally as follows: Beginning at the point at which the southerly boundary of Tract
39 of Township 83 South, Range 136 West, Seward Meridian,
Alaska, intersects the easterly boundary of the road that connects the Native Village of Nikolski and the airfield at Nikolski;
then meandering in a northeasterly direction along the easterly
boundary of that road until the road intersects the westerly
boundary of the road that connects Umnak Lake and the airfield; then meandering in a southerly direction along the
western boundary of that Umnak Lake road until that western
boundary intersects the southern boundary of such Tract 39;
then proceeding eastward along the southern boundary of such
Tract 39 to the beginning point.
(5) The term ‘‘Phase I lands’’ means Tract 39 of Township
83 South, Range 136 West, Seward Meridian, excluding the
Nikolski powerhouse land.
(6) The term ‘‘Phase II lands’’ means the portion of the
former Nikolski Radio Relay Site not conveyed as Phase I
lands.

TITLE II—FAA ORGANIZATION
Subtitle A—FAA Reform
SEC. 201. MANAGEMENT ADVISORY COMMITTEE MEMBERS.

Section 106(p) is amended—
(1) in the subsection heading by inserting ‘‘AND AIR TRAFFIC
SERVICES BOARD’’ after ‘‘COUNCIL’’; and
(2) in paragraph (2)—
(A) by striking ‘‘consist of’’ and all that follows through
‘‘members, who’’ and inserting ‘‘consist of 13 members,
who’’;

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(B) by inserting after ‘‘Senate’’ in subparagraph (C)(i)
‘‘, except that initial appointments made after May 1, 2003,
shall be made by the Secretary of Transportation’’;
(C) by striking the semicolon at the end of subparagraph (C)(ii) and inserting ‘‘; and’’; and
(D) by striking ‘‘employees, by—’’ in subparagraph (D)
and all that follows through the period at the end of
subparagraph (E) and inserting ‘‘employees, by the Secretary of Transportation.’’.
SEC. 202. REORGANIZATION OF THE AIR TRAFFIC SERVICES SUBCOMMITTEE.

Section 106(p) is amended—
(1) by striking paragraph (3) and inserting the following:
‘‘(3) QUALIFICATIONS.—No officer or employee of the United
States Government may be appointed to the Council under
paragraph (2)(C) or to the Air Traffic Services Committee.’’;
(2) in paragraph (4)(C) by inserting ‘‘or Air Traffic Services
Committee’’ after ‘‘Council’’ each place it appears;
(3) in paragraph (5) by inserting ‘‘, the Air Traffic Services
Committee,’’ after ‘‘Council’’;
(4) in paragraph (6)(C)—
(A) by striking ‘‘SUBCOMMITTEE’’ in the subparagraph
heading and inserting ‘‘COMMITTEE’’;
(B) by striking ‘‘member’’ and inserting ‘‘members’’;
(C) by striking ‘‘under paragraph (2)(E)’’ the first place
it appears and inserting ‘‘to the Air Traffic Services Committee’’; and
(D) by striking ‘‘of the members first’’ and all that
follows through the period at the end and inserting ‘‘the
first members of the Committee shall be the members
of the Air Traffic Services Subcommittee of the Council
on the day before the date of enactment of the Vision
100—Century of Aviation Reauthorization Act who shall
serve in an advisory capacity until such time as the President appoints the members of the Committee under paragraph (7).’’;
(5) in paragraph (6)(D) by striking ‘‘under paragraph (2)(E)’’
and inserting ‘‘to the Committee’’;
(6) in paragraph (6)(E) by inserting ‘‘or Committee’’ after
‘‘Council’’;
(7) in paragraph (6)(F) by inserting ‘‘of the Council or
Committee’’ after ‘‘member’’;
(8) in the second sentence of subparagraph (6)(G)—
(A) by striking ‘‘Council’’ and inserting ‘‘Committee’’;
and
(B) by striking ‘‘appointed under paragraph (2)(E)’’;
(9) in paragraph (6)(H)—
(A) by striking ‘‘SUBCOMMITTEE’’ in the subparagraph
heading and inserting ‘‘COMMITTEE’’;
(B) by striking ‘‘under paragraph (2)(E)’’ in clause (i)
and inserting ‘‘to the Committee’’; and
(C) by striking ‘‘Air Traffic Services Subcommittee’’
and inserting ‘‘Committee’’;
(10) in paragraph (6)(I)(i)—
(A) by striking ‘‘appointed under paragraph (2)(E) is’’
and inserting ‘‘is serving as’’; and

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(B) by striking ‘‘Subcommittee’’ and inserting ‘‘Committee’’;
(11) in paragraph (6)(I)(ii)—
(A) by striking ‘‘appointed under paragraph (2)(E)’’ and
inserting ‘‘who is a member of the Committee’’; and
(B) by striking ‘‘Subcommittee’’ and inserting ‘‘Committee’’;
(12) in paragraph (6)(K) by inserting ‘‘or Committee’’ after
‘‘Council’’;
(13) in paragraph (6)(L) by inserting ‘‘or Committee’’ after
‘‘Council’’ each place it appears; and
(14) in paragraph (7)—
(A) by striking ‘‘SUBCOMMITTEE’’ in the paragraph
heading and inserting ‘‘COMMITTEE’’;
(B) by striking subparagraph (A) and inserting the
following:
‘‘(A) ESTABLISHMENT.—The Administrator shall establish a committee that is independent of the Council by
converting the Air Traffic Services Subcommittee of the
Council, as in effect on the day before the date of enactment
of the Vision 100—Century of Aviation Reauthorization
Act, into such committee. The committee shall be known
as the Air Traffic Services Committee (in this subsection
referred to as the ‘Committee’).’’;
(C) by redesignating subparagraphs (B) through (F)
as subparagraphs (D) through (H), respectively;
(D) by inserting after subparagraph (A) the following:
‘‘(B) MEMBERSHIP AND QUALIFICATIONS.—Subject to
paragraph (6)(C), the Committee shall consist of five members, one of whom shall be the Administrator and shall
serve as chairperson. The remaining members shall be
appointed by the President with the advice and consent
of the Senate and—
‘‘(i) shall have a fiduciary responsibility to represent the public interest;
‘‘(ii) shall be citizens of the United States; and
‘‘(iii) shall 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 and, in the aggregate, should collectively bring
to bear expertise in all of the following areas:
‘‘(I) Management of large service organizations.
‘‘(II) Customer service.
‘‘(III) Management of large procurements.
‘‘(IV) Information and communications technology.
‘‘(V) Organizational development.
‘‘(VI) Labor relations.
‘‘(C) PROHIBITIONS ON MEMBERS OF COMMITTEE.—No
member of the Committee 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;

President.
Congress.

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‘‘(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) by striking ‘‘Subcommittee’’ each place it appears
in subparagraphs (D) and (E) (as redesignated by subparagraph (C) of this paragraph) and inserting ‘‘Committee’’;
(F) by striking ‘‘approve’’ in subparagraph (E)(v)(I) (as
so redesignated) and inserting ‘‘make recommendations on’’;
(G) by striking ‘‘request’’ in subparagraph (E)(v)(II)
(as so redesignated) and inserting ‘‘recommendations’’;
(H) by striking ‘‘ensure that the budget request supports’’ in subparagraph (E)(v)(III) (as so redesignated) and
inserting ‘‘base such budget recommendations on’’;
(I) by striking ‘‘The Secretary shall submit’’ in subparagraph (E) (as so redesignated) and all that follows through
the period at the end of such subparagraph (E);
(J) by striking subparagraph (F) (as so redesignated)
and inserting the following:
‘‘(F) COMMITTEE PERSONNEL MATTERS AND EXPENSES.—
‘‘(i) PERSONNEL MATTERS.—The Committee may
appoint and terminate for purposes of employment by
the Committee any personnel that may be necessary
to enable the Committee to perform its duties, and
may procure temporary and intermittent services
under section 40122.
‘‘(ii) TRAVEL EXPENSES.—Each member of the Committee shall receive travel expenses, including per diem
in lieu of subsistence, in accordance with applicable
provisions under subchapter I of chapter 57 of title
5, United States Code.’’;
(K) in subparagraph (G) (as so redesignated)—
(i) by striking clause (i);
(ii) by redesignating clauses (ii), (iii), and (iv) as
clauses (i), (ii), and (iii), respectively; and
(iii) by striking ‘‘Subcommittee’’ each place it
appears in clauses (i), (ii), and (iii) (as so redesignated)
and inserting ‘‘Committee’’;
(L) in subparagraph (H) (as so redesignated)—
(i) by striking ‘‘Subcommittee’’ each place it
appears and inserting ‘‘Committee’’;
(ii) by striking ‘‘Administrator, the Council’’ each
place it appears in clauses (i) and (ii) and inserting
‘‘Secretary’’; and
(iii) in clause (ii) by striking ‘‘(B)(i)’’ and inserting
‘‘(D)(i)’’; and
(M) by adding at the end the following:
‘‘(I) AUTHORIZATION.—There are authorized to be
appropriated to the Committee such sums as may be necessary for the Committee to carry out its activities.’’.
SEC. 203. CLARIFICATION OF THE RESPONSIBILITIES OF THE CHIEF
OPERATING OFFICER.

Section 106(r) is amended—
(1) in each of paragraphs (1)(A) and (2)(A) by striking
‘‘Air Traffic Services Subcommittee of the Aviation Management

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Advisory Council’’ and inserting ‘‘Air Traffic Services Committee’’;
(2) in paragraph (2)(B) by inserting ‘‘in’’ before ‘‘paragraph
(3).’’;
(3) in paragraph (3) by striking ‘‘Air Traffic Control Subcommittee of the Aviation Management Advisory Committee’’
and inserting ‘‘Air Traffic Services Committee’’;
(4) in paragraph (4) by striking ‘‘Transportation and Congress’’ and inserting ‘‘Transportation, the Committee on
Transportation and Infrastructure of the House of Representatives, and the Committee on Commerce, Science, and Transportation of the Senate’’;
(5) in paragraph (5)(A)—
(A) by striking ‘‘develop a’’ and inserting ‘‘implement
the’’; and
(B) by striking ‘‘, including the establishment of’’ and
inserting ‘‘in order to further’’;
(6) in paragraph (5)(B)—
(A) by striking ‘‘review’’ and all that follows through
‘‘Administration,’’ and inserting ‘‘oversee the day-to-day
operational functions of the Administration for air traffic
control,’’;
(B) by striking ‘‘and’’ at the end of clause (ii);
(C) by striking the period at the end of clause (iii)
and inserting ‘‘; and’’; and
(D) by adding at the end the following:
‘‘(iv) the management of cost-reimbursable contracts.’’;
(7) in paragraph (5)(C)(i) by striking ‘‘prepared by the
Administrator’’;
(8) in paragraph (5)(C)(ii) by striking ‘‘and the Secretary
of Transportation’’ and inserting ‘‘and the Committee’’; and
(9) in paragraph (5)(C)(iii)—
(A) by inserting ‘‘agency’s’’ before ‘‘annual’’; and
(B) by striking ‘‘developed under subparagraph (A) of
this subsection.’’ and inserting ‘‘for air traffic control services.’’.

SEC. 204. DEPUTY ADMINISTRATOR.

Section 106(d) is amended—
(1) by redesignating paragraphs (2) and (3) as (3) and
(4), respectively; and
(2) by inserting after paragraph (1) the following:
‘‘(2) The annual rate of basic pay of the Deputy Administrator
shall be set by the Secretary but shall not exceed the annual
rate of basic pay payable to the Administrator of the Federal
Aviation Administration.’’.

Subtitle B—Miscellaneous
49 USC 44506
note.
Effective date.

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SEC. 221. CONTROLLER STAFFING.

(a) ANNUAL REPORT.—Beginning with the submission of the
Budget of the United States to the Congress for fiscal year 2005,
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

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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.
(b) HUMAN CAPITAL WORKFORCE STRATEGY.—
(1) DEVELOPMENT.—The Administrator shall develop a comprehensive human capital workforce strategy to determine the
most effective method for addressing the need for more air
traffic controllers that is identified in the June 2002 report
of the General Accounting Office.
(2) COMPLETION DATE.—Not later than 1 year after the
date of enactment of this Act, the Administrator shall complete
development of the strategy.
(3) REPORT.—Not later than 30 days after the date on
which the strategy is completed, the Administrator shall
transmit to Congress a report describing the strategy.
SEC.

222.

WHISTLEBLOWER PROTECTION
MANAGEMENT SYSTEM.

UNDER

Deadline.

ACQUISITION

Section 40110(d)(2)(C) is amended by striking ‘‘355).’’ and
inserting ‘‘355), except for section 315 (41 U.S.C. 265). For the
purpose of applying section 315 of that Act to the system, the
term ‘executive agency’ is deemed to refer to the Federal Aviation
Administration.’’.
SEC. 223. FAA PURCHASE CARDS.

(a) IN GENERAL.—The Administrator of the Federal Aviation
Administration shall take appropriate actions to implement the
recommendations contained in the report of the General Accounting
Office entitled ‘‘FAA Purchase Cards: Weak Controls Resulted in
Instances of Improper and Wasteful Purchases and Missing Assets’’,
numbered GAO–03–405 and dated March 21, 2003.
(b) REPORT.—Not later than 1 year after the date of enactment
of this Act, the Administrator shall transmit to Congress a report
containing a description of the actions taken by the Administrator
under this section.

Deadline.

SEC. 224. PROCUREMENT.

(a) DUTIES AND POWERS.—Section 40110(c) is amended—
(1) by striking ‘‘Administration—’’ and all that follows
through ‘‘(2) may—’’ and inserting ‘‘Administration may—’’;
(2) by striking subparagraph (D);
(3) by redesignating subparagraphs (A), (B), (C), (E), and
(F) as paragraphs (1), (2), (3), (4), and (5), respectively; and
(4) by moving such paragraphs (1) through (5) 2 ems to
the left.
(b) ACQUISITION MANAGEMENT SYSTEM.—Section 40110(d) is
amended—
(1) in paragraph (1)—
(A) by striking ‘‘, not later than January 1, 1996,’’;
and
(B) by striking ‘‘provides for more timely and costeffective acquisitions of equipment and materials.’’ and
inserting the following:
‘‘provides for—
‘‘(A) more timely and cost-effective acquisitions of
equipment, services, property, and materials; and

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PUBLIC LAW 108–176—DEC. 12, 2003

‘‘(B) the resolution of bid protests and contract disputes
related thereto, using consensual alternative dispute resolution techniques to the maximum extent practicable.’’; and
(2) by striking paragraph (4), relating to the effective date,
and inserting the following:
‘‘(4) ADJUDICATION OF CERTAIN BID PROTESTS AND CONTRACT
DISPUTES.—A bid protest or contract dispute that is not
addressed or resolved through alternative dispute resolution
shall be adjudicated by the Administrator through Dispute
Resolution Officers or Special Masters of the Federal Aviation
Administration Office of Dispute Resolution for Acquisition,
acting pursuant to sections 46102, 46104, 46105, 46106 and
46107 and shall be subject to judicial review under section
46110 and to section 504 of title 5.’’.
(c) AUTHORITY OF ADMINISTRATOR TO ACQUIRE SERVICES.—Section 106(f)(2)(A)(ii) is amended by inserting ‘‘, services,’’ after ‘‘property’’.
SEC. 225. DEFINITIONS.

(a) IN GENERAL.—Section 40102(a) is amended—
(1) by redesignating paragraphs (38) through (42) as paragraphs (43) through (47), respectively;
(2) by inserting after paragraph (37) the following:
‘‘(42) ‘small hub airport’ means a commercial service airport
(as defined in section 47102) that has at least 0.05 percent
but less than 0.25 percent of the passenger boardings.’’;
(3) by redesignating paragraphs (33) through (37) as paragraphs (37) through (41) respectively;
(4) by inserting after paragraph (32) the following:
‘‘(36) ‘passenger boardings’—
‘‘(A) means, unless the context indicates otherwise,
revenue passenger boardings in the United States in the
prior calendar year on an aircraft in service in air commerce, as the Secretary determines under regulations the
Secretary prescribes; and
‘‘(B) includes passengers who continue on an aircraft
in international flight that stops at an airport in the 48
contiguous States, Alaska, or Hawaii for a nontraffic purpose.’’;
(5) by redesignating paragraph (32) as paragraph (35);
(6) by inserting after paragraph (31) the following:
‘‘(34) ‘nonhub airport’ means a commercial service airport
(as defined in section 47102) that has less than 0.05 percent
of the passenger boardings.’’;
(7) by redesignating paragraphs (30) and (31) as paragraphs
(32) and (33), respectively;
(8) by inserting after paragraph (29) the following:
‘‘(31) ‘medium hub airport’ means a commercial service
airport (as defined in section 47102) that has at least 0.25
percent but less than 1.0 percent of the passenger boardings.’’;
(9) by redesignating paragraph (29) as paragraph (30);
and
(10) by inserting after paragraph (28) the following:
‘‘(29) ‘large hub airport’ means a commercial service airport
(as defined in section 47102) that has at least 1.0 percent
of the passenger boardings.’’.
(b) CONFORMING AMENDMENTS.—

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(1) AIR SERVICE TERMINATION NOTICE.—Section 41719(d)
is amended—
(A) by striking paragraph (1); and
(B) by redesignating paragraphs (2) through (5) as
paragraphs (1) through (4), respectively.
(2) SMALL COMMUNITY AIR SERVICE.—Section 41731(a) is
amended by striking paragraphs (3) through (5).
(3) AIRPORTS NOT RECEIVING SUFFICIENT SERVICE.—Section
41743 is amended—
(A) in subsection (c)(1) by striking ‘‘(as that term is
defined in section 41731(a)(5))’’; and
(B) in subsection (f) by striking ‘‘(as defined in section
41731(a)(3))’’.
(4) PRESERVATION OF BASIC ESSENTIAL AIR SERVICE AT
SINGLE CARRIER DOMINATED HUB AIRPORTS.—Section 41744(b)
is amended by striking ‘‘(as defined in section 41731)’’.
(5) REGIONAL AIR SERVICE INCENTIVE PROGRAM.—Section
41762 is amended—
(A) by striking paragraphs (11) and (15); and
(B) by redesignating paragraphs (12), (13), (14), and
(16) as paragraphs (11), (12), (13), and (14), respectively.
SEC. 226. AIR TRAFFIC CONTROLLER RETIREMENT.

(a) AIR TRAFFIC CONTROLLER DEFINED.—
(1) CIVIL SERVICE RETIREMENT SYSTEM.—Section 8331 of
title 5, United States Code, is amended—
(A) by striking ‘‘and’’ at the end of paragraph (27);
(B) by striking the period at the end of paragraph
(28) and inserting ‘‘; and’’; and
(C) by adding at the end the following:
‘‘(29) the term ‘air traffic controller’ or ‘controller’ means—
‘‘(A) a controller within the meaning of section 2109(1);
and
‘‘(B) a civilian employee of the Department of Transportation or the Department of Defense who is the immediate
supervisor of a person described in section 2109(1)(B).’’.
(2) FEDERAL EMPLOYEES’ RETIREMENT SYSTEM.—Section
8401 of title 5, United States Code, is amended—
(A) by striking ‘‘and’’ at the end of paragraph (33);
(B) by striking the period at the end of paragraph
(34) and inserting ‘‘; and’’; and
(C) by adding at the end the following:
‘‘(35) the term ‘air traffic controller’ or ‘controller’ means—
‘‘(A) a controller within the meaning of section 2109(1);
and
‘‘(B) a civilian employee of the Department of Transportation or the Department of Defense who is the immediate
supervisor of a person described in section 2109(1)(B).’’.
(3) MANDATORY SEPARATION TREATMENT NOT AFFECTED.—
(A) CIVIL SERVICE RETIREMENT SYSTEM.—Section
8335(a) of title 5, United States Code, is amended by adding
at the end the following: ‘‘For purposes of this subsection,
the term ‘air traffic controller’ or ‘controller’ has the
meaning given to it under section 8331(29)(A).’’.
(B) FEDERAL EMPLOYEES’ RETIREMENT SYSTEM.—Section 8425(a) of title 5, United States Code, is amended
by adding at the end the following: ‘‘For purposes of this

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5 USC 8401 note.

Applicability.

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subsection, the term ‘air traffic controller’ or ‘controller’
has the meaning given to it under section 8401(35)(A).’’.
(b) MODIFIED ANNUITY COMPUTATION RULE FOR CERTAIN AIR
TRAFFIC CONTROLLERS UNDER FERS.—
(1) IN GENERAL.—Section 8415 of title 5, United States
Code, is amended—
(A) by redesignating subsections (e) through (j) as subsections (f) through (k), respectively, and by redesignating
the second subsection (i) as subsection (l); and
(B) by inserting after subsection (d) the following:
‘‘(e) The annuity of an air traffic controller or former air traffic
controller retiring under section 8412(a) is computed under subsection (a), except that if the individual has had at least 5 years
of service as an air traffic controller as defined by section
2109(1)(A)(i), so much of the annuity as is computed with respect
to such type of service shall be computed by multiplying 17⁄10
percent of the individual’s average pay by the years of such service.’’.
(2) CONFORMING AMENDMENTS.—(A) Section 8422(d)(2) of
title 5, United States Code, is amended by striking ‘‘8415(i)’’
and inserting ‘‘8415(j)’’.
(B) Section 8452(d)(1) of such title is amended by striking
‘‘subsection (f)’’ and inserting ‘‘subsection (g)’’.
(C) Section 8468(b)(1)(A) of such title is amended by
striking ‘‘through (g)’’ and inserting ‘‘through (h)’’.
(D) Section 302(a) of the Federal Employees’ Retirement
System Act of 1986 (5 U.S.C. 8331 note) is amended—
(i) in paragraph (1)(D)(VI), by striking ‘‘subsection (g)’’
and inserting ‘‘subsection (h)’’;
(ii) in paragraph (9), by striking ‘‘8415(f)’’ and inserting
‘‘8415(g)’’; and
(iii) in paragraph (12)(B)(ii), by striking ‘‘through (f)’’
and inserting ‘‘through (g)’’.
(c) EFFECTIVE DATE.—
(1) IN GENERAL.—This section and the amendments made
by this section—
(A) shall take effect on the 60th day after the date
of enactment of this Act; and
(B) shall apply with respect to—
(i) any annuity entitlement to which is based on
an individual’s separation from service occurring on
or after the effective date of this section; and
(ii) any service performed by any such individual
before, on, or after the effective date of this section,
subject to paragraph (2).
(2) SPECIAL RULE.—
(A) DEPOSIT REQUIREMENT.—For purposes of determining eligibility for immediate retirement under section
8412(e) of title 5, United States Code, the amendment
made by subsection (a)(2) shall, with respect to any service
described in subparagraph (B), be disregarded unless there
is deposited into the Civil Service Retirement and Disability
Fund, with respect to such service, in such time, form,
and manner as the Office of Personnel Management by
regulation requires, an amount equal to the amount by
which—
(i) the deductions from pay which would have been
required for such service if the amendments made

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117 STAT. 2531

by subsection (a)(2) had been in effect when such
service was performed, exceeds
(ii) the unrefunded deductions or deposits actually
made under subchapter II of chapter 84 of such title
with respect to such service.
An amount under this subparagraph shall include interest,
computed under paragraphs (2) and (3) of section 8334(e)
of such title 5.
(B) PRIOR SERVICE DESCRIBED.—This paragraph applies
with respect to any service performed by an individual
before the effective date of this section as an employee
described in section 8401(35)(B) of title 5, United States
Code (as amended by subsection (a)(2)).

Applicability.

SEC. 227. DESIGN ORGANIZATION CERTIFICATES.

(a) GENERAL AUTHORITY TO ISSUE CERTIFICATES.—Effective on
the last day of the 7-year period beginning on the date of enactment
of this Act, section 44702(a) is amended by inserting ‘‘design
organization certificates,’’ after ‘‘airman certificates,’’.
(b) DESIGN ORGANIZATION CERTIFICATES.—
(1) PLAN.—Not later than 4 years after the date of enactment of this Act, the Administrator of the Federal Aviation
Administration shall transmit to the Committee on Transportation and Infrastructure of the House of Representatives and
the Committee on Commerce, Science, and Transportation of
the Senate a plan for the development and oversight of a
system for certification of design organizations to certify compliance with the requirements and minimum standards prescribed
under section 44701(a) of title 49, United States Code, for
the type certification of aircraft, aircraft engines, propellers,
or appliances.
(2) ISSUANCE OF CERTIFICATES.—Section 44704 is amended
by adding at the end the following:
‘‘(e) DESIGN ORGANIZATION CERTIFICATES.—
‘‘(1) ISSUANCE.—Beginning 7 years after the date of enactment of this subsection, the Administrator may issue a design
organization certificate to a design organization to authorize
the organization 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.
‘‘(2) APPLICATIONS.—On receiving an application for a
design organization certificate, the Administrator shall examine
and rate the design organization submitting the application,
in accordance with regulations to be prescribed by the Administrator, to determine whether 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 section 44701(a).
‘‘(3) ISSUANCE OF TYPE CERTIFICATES BASED ON DESIGN
ORGANIZATION CERTIFICATION.—The Administrator may rely on
certifications of compliance by a design organization when
making a finding under subsection (a).

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Effective date.
49 USC 44702
note.

Deadline.
49 USC 44704
note.

Effective date.

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‘‘(4) PUBLIC SAFETY.—The Administrator shall include in
a design organization certificate issued under this subsection
terms required in the interest of safety.
‘‘(5) NO EFFECT ON POWER OF REVOCATION.—Nothing in
this subsection affects the authority of the Secretary of
Transportation to revoke a certificate.’’.
(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) SECTION HEADING.—Section 44704 is amended by
striking the section designation and heading and inserting the
following:
‘‘§ 44704. Type certificates, production certificates, airworthiness certificates, and design organization
certificates’’.
(2) CHAPTER ANALYSIS.—The analysis for chapter 447 is
amended by striking the item relating to section 44704 and
inserting the following:
‘‘44704. Type certificates, production certificates, airworthiness certificates, and design organization certificates.’’.
SEC. 228. JUDICIAL REVIEW.

The first sentence of section 46110(a) is amended—
(1) by striking ‘‘safety’’; and
(2) by striking ‘‘under this part’’ and inserting ‘‘in whole
or in part under this part, part B, or subsection (l) or (s)
of section 114’’.
49 USC 45301
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SEC. 229. OVERFLIGHT FEES.

(a) ADOPTION AND LEGALIZATION OF CERTAIN RULES.—
(1) APPLICABILITY AND EFFECT OF CERTAIN LAW.—Notwithstanding section 141(d)(1) of the Aviation and Transportation
Security Act (49 U.S.C. 44901 note), section 45301(b)(1)(B) of
title 49, United States Code, is deemed to apply to and to
have effect with respect to the authority of the Administrator
of the Federal Aviation Administration with respect to the
interim final rule and final rule, relating to overflight fees,
issued by the Administrator on May 30, 2000, and August
13, 2001, respectively.
(2) ADOPTION AND LEGALIZATION.—The interim final rule
and final rule referred to in subsection (a), including the fees
issued pursuant to those rules, are adopted, legalized, and
confirmed as fully to all intents and purposes as if the same
had, by prior Act of Congress, been specifically adopted, authorized, and directed as of the date those rules were originally
issued.
(3) FEES TO WHICH APPLICABLE.—This subsection applies
to fees assessed after November 19, 2001, and before April
8, 2003, and fees collected after the requirements of subsection
(b) have been met.
(b) DEFERRED COLLECTION OF FEES.—The Administrator shall
defer collecting fees under section 45301(a)(1) of title 49, United
States Code, until the Administrator (1) reports to Congress

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responding to the issues raised by the court in Air Transport
Association of Canada v. Federal Aviation Administration and
Administrator, FAA, decided on April 8, 2003, and (2) consults
with users and other interested parties regarding the consistency
of the fees established under such section with the international
obligations of the United States.
(c) ENFORCEMENT.—The Administrator shall take an appropriate enforcement action under subtitle VII of title 49, United
States Code, against any user that does not pay a fee under section
45301(a)(1) of such title.

TITLE III—ENVIRONMENTAL PROCESS
Subtitle A—Aviation Development
Streamlining
SEC. 301. SHORT TITLE.

This title may be cited as ‘‘Aviation Streamlining Approval
Process Act of 2003’’.
SEC. 302. FINDINGS.

Congress finds that—
(1) airports play a major role in interstate and foreign
commerce;
(2) congestion and delays at our Nation’s major airports
have a significant negative impact on our Nation’s economy;
(3) airport capacity enhancement projects at congested airports are a national priority and should be constructed on
an expedited basis;
(4) airport capacity enhancement projects must include an
environmental review process that provides local citizenry an
opportunity for consideration of and appropriate action to
address environmental concerns; and
(5) the Federal Aviation Administration, airport authorities, communities, and other Federal, State, and local government agencies must work together to develop a plan, set and
honor milestones and deadlines, and work to protect the
environment while sustaining the economic vitality that will
result from the continued growth of aviation.

Aviation
Streamlining
Approval Process
Act of 2003.

49 USC 40101
note.

49 USC 47171
note.

SEC. 303. AIRPORT CAPACITY ENHANCEMENT.

Section 40104 is amended by adding at the end the following:
‘‘(c) AIRPORT CAPACITY ENHANCEMENT PROJECTS AT CONGESTED
AIRPORTS.—In carrying out subsection (a), the Administrator shall
take action to encourage the construction of airport capacity
enhancement projects at congested airports as those terms are
defined in section 47176.’’.
SEC. 304. AVIATION PROJECT STREAMLINING.

(a) IN GENERAL.—Chapter 471 is amended by inserting after
subchapter II the following:

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PUBLIC LAW 108–176—DEC. 12, 2003
‘‘SUBCHAPTER III—AVIATION DEVELOPMENT
STREAMLINING

‘‘§ 47171.

Guidelines.

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Expedited, coordinated environmental review
process
‘‘(a) AVIATION PROJECT REVIEW PROCESS.—The Secretary of
Transportation shall develop and implement an expedited and
coordinated environmental review process for airport capacity
enhancement projects at congested airports, aviation safety projects,
and aviation security 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 that all environmental reviews, analyses, opinions, permits, licenses, and approvals that must be issued or
made by a Federal agency or airport sponsor for such a project
will be conducted concurrently, to the maximum extent practicable; and
‘‘(3) provides that any environmental review, analysis,
opinion, permit, license, or approval that must be issued or
made by a Federal agency or airport sponsor for such a project
will be completed within a time period established by the
Secretary, in cooperation with the agencies identified under
subsection (d) with respect to the project.
‘‘(b) AVIATION PROJECTS SUBJECT TO A STREAMLINED ENVIRONMENTAL REVIEW PROCESS.—
‘‘(1) AIRPORT CAPACITY ENHANCEMENT PROJECTS AT CONGESTED AIRPORTS.—An airport capacity enhancement project
at a congested airport shall be subject to the coordinated and
expedited environmental review process requirements set forth
in this section.
‘‘(2) AVIATION SAFETY AND AVIATION SECURITY PROJECTS.—
‘‘(A) IN GENERAL.—The Administrator of the Federal
Aviation Administration may designate an aviation safety
project or aviation security project for priority environmental review. The Administrator may not delegate this
designation authority. A designated project shall be subject
to the coordinated and expedited environmental review
process requirements set forth in this section.
‘‘(B) PROJECT DESIGNATION CRITERIA.—The Administrator shall establish guidelines for the designation of an
aviation safety project or aviation security project for priority environmental review. Such guidelines shall provide
for consideration of—
‘‘(i) the importance or urgency of the project;
‘‘(ii) the potential for undertaking the environmental review under existing emergency procedures
under the National Environmental Policy Act of 1969
(42 U.S.C. 4321 et seq.);
‘‘(iii) the need for cooperation and concurrent
reviews by other Federal or State agencies;
‘‘(iv) the prospect for undue delay if the project
is not designated for priority review; and
‘‘(v) for aviation security projects, the views of the
Department of Homeland Security.

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‘‘(c) HIGH PRIORITY OF AND AGENCY PARTICIPATION IN COORDIREVIEWS.—
‘‘(1) HIGH PRIORITY FOR ENVIRONMENTAL REVIEWS.—Each
Federal agency with jurisdiction over an environmental review,
analysis, opinion, permit, license, or approval shall accord any
such review, analysis, opinion, permit, license, or approval
involving an airport capacity enhancement project at a congested airport or a project designated under subsection (b)(2)
the highest possible priority and conduct the review, analysis,
opinion, permit, license, or approval expeditiously.
‘‘(2) AGENCY PARTICIPATION.—Each Federal agency
described in subsection (d) shall formulate and implement
administrative, policy, and procedural mechanisms to enable
the agency to participate in the coordinated environmental
review process under this section and to ensure completion
of environmental reviews, analyses, opinions, permits, licenses,
and approvals described in subsection (a) in a timely and
environmentally responsible manner.
‘‘(d) IDENTIFICATION OF JURISDICTIONAL AGENCIES.—With
respect to each airport capacity enhancement project at a congested
airport or a project designated under subsection (b)(2), the Secretary
shall identify, as soon as practicable, all Federal and State agencies
that may have jurisdiction over environmental-related matters that
may be affected by the project or may be required by law to
conduct an environmental-related review or analysis of the project
or determine whether to issue an environmental-related permit,
license, or approval for the project.
‘‘(e) STATE AUTHORITY.—Under a coordinated review process
being implemented under this section by the Secretary with respect
to a project at an airport within the boundaries of a State, the
Governor of the State, consistent with State law, may choose to
participate in such process and provide that all State agencies
that have jurisdiction over environmental-related matters that may
be affected by the project or may be required by law to conduct
an environmental-related review or analysis of the project or determine whether to issue an environmental-related permit, license,
or approval for the project, be subject to the process.
‘‘(f) MEMORANDUM OF UNDERSTANDING.—The coordinated
review process developed under this section may be incorporated
into a memorandum of understanding for a project between the
Secretary and the heads of other Federal and State agencies identified under subsection (d) with respect to the project and, if
applicable, the airport sponsor.
‘‘(g) USE OF INTERAGENCY ENVIRONMENTAL IMPACT STATEMENT
TEAMS.—
‘‘(1) IN GENERAL.—The Secretary may utilize an interagency
environmental impact statement team to expedite and coordinate the coordinated environmental review process for a project
under this section. When utilizing an interagency environmental impact statement team, the Secretary shall invite Federal, State and Tribal agencies with jurisdiction by law, and
may invite such agencies with special expertise, to participate
on an interagency environmental impact statement team.
‘‘(2) RESPONSIBILITY OF INTERAGENCY ENVIRONMENTAL
IMPACT STATEMENT TEAM.—Under a coordinated environmental
review process being implemented under this section, the interagency environmental impact statement team shall assist the
NATED

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Federal Aviation Administration in the preparation of the
environmental impact statement. To facilitate timely and efficient environmental review, the team shall agree on agency
or Tribal points of contact, protocols for communication among
agencies, and deadlines for necessary actions by each individual
agency (including the review of environmental analyses, the
conduct of required consultation and coordination, and the
issuance of environmental opinions, licenses, permits, and
approvals). The members of the team may formalize their agreement in a written memorandum.
‘‘(h) LEAD AGENCY RESPONSIBILITY.—The Federal Aviation
Administration shall be the lead agency for projects designated
under subsection (b)(2) and airport capacity enhancement projects
at congested airports and shall be responsible for defining the
scope and content of the environmental impact statement, consistent
with regulations issued by the Council on Environmental Quality.
Any other Federal agency or State agency that is participating
in a coordinated environmental review process under this section
shall give substantial deference, to the extent consistent with
applicable law and policy, to the aviation expertise of the Federal
Aviation Administration.
‘‘(i) EFFECT OF FAILURE TO MEET DEADLINE.—
‘‘(1) NOTIFICATION OF CONGRESS AND CEQ.—If the Secretary
determines that a Federal agency, State agency, or airport
sponsor that is participating in a coordinated review process
under this section with respect to a project has not met a
deadline established under subsection (a)(3) for the project,
the Secretary shall notify, within 30 days of the date of such
determination, the Committee on Commerce, Science, and
Transportation of the Senate, the Committee on Transportation
and Infrastructure of the House of Representatives, the Council
on Environmental Quality, and the agency or sponsor involved
about the failure to meet the deadline.
‘‘(2) AGENCY REPORT.—Not later than 30 days after date
of receipt of a notice under paragraph (1), the agency or sponsor
involved shall submit a report to the Secretary, the Committee
on Transportation and Infrastructure of the House of Representatives, the Committee on Commerce, Science, and
Transportation of the Senate, and the Council on Environmental Quality explaining why the agency or sponsor did not
meet the deadline and what actions it intends to take to complete or issue the required review, analysis, opinion, permit,
license, or approval.
‘‘(j) PURPOSE AND NEED.—For any environmental review, analysis, opinion, permit, license, or approval that must be issued or
made by a Federal or State agency that is participating in a coordinated review process under this section and that requires an analysis of purpose and need for the project, the agency, notwithstanding
any other provision of law, shall be bound by the project purpose
and need as defined by the Secretary.
‘‘(k) ALTERNATIVES ANALYSIS.—The Secretary shall determine
the reasonable alternatives to an airport capacity enhancement
project at a congested airport or a project designated under subsection (b)(2). Any other Federal agency, or State agency that is
participating in a coordinated review process under this section
with respect to the project shall consider only those alternatives
to the project that the Secretary has determined are reasonable.

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‘‘(l) SOLICITATION AND CONSIDERATION OF COMMENTS.—In
applying subsections (j) and (k), the Secretary shall solicit and
consider comments from interested persons and governmental entities in accordance with the National Environmental Policy Act
of 1969 (42 U.S.C. 4371 et seq.).
‘‘(m) MONITORING BY TASK FORCE.—The Transportation Infrastructure Streamlining Task Force, established by Executive Order
13274 (67 Fed. Reg. 59449; relating to environmental stewardship
and transportation infrastructure project reviews), may monitor
airport projects that are subject to the coordinated review process
under this section.
‘‘§ 47172. Air traffic procedures for airport capacity enhancement projects at congested airports
‘‘(a) IN GENERAL.—The Administrator of the Federal Aviation
Administration may consider prescribing flight procedures to avoid
or minimize potentially significant adverse noise impacts of an
airport capacity enhancement project at a congested airport that
involves the construction of new runways or the reconfiguration
of existing runways during the environmental planning process
for the project. If the Administrator determines that noise mitigation flight procedures are consistent with safe and efficient use
of the navigable airspace, the Administrator may commit, at the
request of the airport sponsor and in a manner consistent with
applicable Federal law, to prescribing such procedures in any record
of decision approving the project.
‘‘(b) MODIFICATION.—Notwithstanding any commitment by the
Administrator under subsection (a), the Administrator may initiate
changes to such procedures if necessary to maintain safety and
efficiency in light of new information or changed circumstances.
‘‘§ 47173. Airport funding of FAA staff
‘‘(a) ACCEPTANCE OF SPONSOR-PROVIDED FUNDS.—Notwithstanding any other provision of law, the Administrator of the Federal Aviation Administration may accept funds from an airport
sponsor, including funds provided to the sponsor under section
47114(c), to hire additional staff or obtain the services of consultants
in order to facilitate the timely processing, review, and completion
of environmental activities associated with an airport development
project.
‘‘(b) ADMINISTRATIVE PROVISION.—Instead of payment from an
airport sponsor from funds apportioned to the sponsor under section
47114, the Administrator, with agreement of the sponsor, may
transfer funds that would otherwise be apportioned to the sponsor
under section 47114 to the account used by the Administrator
for activities described in subsection (a).
‘‘(c) RECEIPTS CREDITED AS OFFSETTING COLLECTIONS.—Notwithstanding section 3302 of title 31, any funds accepted under
this section, except funds transferred pursuant to subsection (b)—
‘‘(1) shall be credited as offsetting collections to the account
that finances the activities and services for which the funds
are accepted;
‘‘(2) shall be available for expenditure only to pay the
costs of activities and services for which the funds are accepted;
and
‘‘(3) shall remain available until expended.

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PUBLIC LAW 108–176—DEC. 12, 2003

‘‘(d) MAINTENANCE OF EFFORT.—No funds may be accepted
pursuant to subsection (a), or transferred pursuant to subsection
(b), in any fiscal year in which the Federal Aviation Administration
does not allocate at least the amount it expended in fiscal year
2002 (excluding amounts accepted pursuant to section 337 of the
Department of Transportation and Related Agencies Appropriations
Act, 2002 (115 Stat. 862)) for the activities described in subsection
(a).
‘‘§ 47174. Authorization of appropriations
‘‘In addition to the amounts authorized to be appropriated
under section 106(k), there is authorized to be appropriated to
the Secretary of Transportation, out of the Airport and Airway
Trust Fund established under section 9502 of the Internal Revenue
Code of 1986 (26 U.S.C. 9502), $4,200,000 for fiscal year 2004
and for each fiscal year thereafter to facilitate the timely processing,
review, and completion of environmental activities associated with
airport capacity enhancement projects at congested airports.
‘‘§ 47175. Definitions
‘‘In this subchapter, the following definitions apply:
‘‘(1) AIRPORT SPONSOR.—The term ‘airport sponsor’ has the
meaning given the term ‘sponsor’ under section 47102.
‘‘(2) CONGESTED AIRPORT.—The term ‘congested airport’
means an airport that accounted for at least 1 percent of
all delayed aircraft operations in the United States in the
most recent year for which such data is available and an
airport listed in table 1 of the Federal Aviation Administration’s
Airport Capacity Benchmark Report 2001.
‘‘(3) AIRPORT CAPACITY ENHANCEMENT PROJECT.—The term
‘airport capacity enhancement project’ means—
‘‘(A) a project for construction or extension of a runway,
including any land acquisition, taxiway, or safety area associated with the runway or runway extension; and
‘‘(B) such other airport development projects as the
Secretary may designate as facilitating a reduction in air
traffic congestion and delays.
‘‘(4) AVIATION SAFETY PROJECT.—The term ‘aviation safety
project’ means an aviation project that—
‘‘(A) has as its primary purpose reducing the risk of
injury to persons or damage to aircraft and property, as
determined by the Administrator; and
‘‘(B)(i) is needed to respond to a recommendation from
the National Transportation Safety Board, as determined
by the Administrator; or
‘‘(ii) is necessary for an airport to comply with part
139 of title 14, Code of Federal Regulations (relating to
airport certification).
‘‘(5) AVIATION SECURITY PROJECT.—The term ‘aviation security project’ means a security project at an airport required
by the Department of Homeland Security.
‘‘(6) FEDERAL AGENCY.—The term ‘Federal agency’ means
a department or agency of the United States Government.’’.
(b) CONFORMING AMENDMENT.—The analysis for such chapter
is amended by adding at the end the following:

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‘‘SUBCHAPTER III—AVIATION DEVELOPMENT STREAMLINING
‘‘47171. Expedited, coordinated environmental review process.
‘‘47172. Air traffic procedures for airport capacity enhancement projects at congested
airports.
‘‘47173. Airport funding of FAA staff.
‘‘47174. Authorization of appropriations.
‘‘47175. Definitions.’’.
SEC. 305. ELIMINATION OF DUPLICATIVE REQUIREMENTS.

Section 47106(c) is amended—
(1) by inserting ‘‘and’’ after the semicolon at the end of
paragraph (1)(A)(iii) (as added by this Act);
(2) by striking subparagraph (B) of paragraph (1);
(3) by redesignating subparagraph (C) of paragraph (1)
as subparagraph (B);
(4) in paragraph (2)(A) by striking ‘‘stage 2’’ and inserting
‘‘stage 3’’;
(5) by striking paragraph (4);
(6) by redesignating paragraph (5) as paragraph (4); and
(7) in paragraph (4) (as so redesignated) by striking ‘‘(1)(C)’’
and inserting ‘‘(1)(B)’’.
SEC. 306. CONSTRUCTION OF CERTAIN AIRPORT CAPACITY PROJECTS.

Section 47504(c)(2) is amended—
(1) by moving subparagraphs (C) and (D) 2 ems to the
right;
(2) by striking ‘‘and’’ at the end of subparagraph (C);
(3) by striking the period at the end of subparagraph (D)
and inserting ‘‘; and’’; and
(4) by adding at the end the following:
‘‘(E) to an airport operator of a congested airport (as
defined in section 47175) and a unit of local government
referred to in paragraph (1)(B) of this subsection to carry
out a project to mitigate noise in the area surrounding
the airport if the project is included as a commitment
in a record of decision of the Federal Aviation Administration for an airport capacity enhancement project (as defined
in section 47175) even if that airport has not met the
requirements of part 150 of title 14, Code of Federal Regulations.’’.
SEC. 307. ISSUANCE OF ORDERS.

Not later than 180 days after the date of enactment of this
Act, the Secretary of Transportation shall publish the final Federal
Aviation Administration Order 1050.1E, Environmental Impacts:
Policies and Procedures. Not later than 180 days after the date
of publication of such final order, the Secretary shall publish for
public comment the revised Federal Aviation Administration Order
5050.4B, Airport Environmental Handbook.
SEC. 308. LIMITATIONS.

Nothing in this subtitle, including any amendment made by
this title, shall preempt or interfere with—
(1) any practice of seeking public comment;
(2) any power, jurisdiction, or authority that a State agency
or an airport sponsor has with respect to carrying out an
airport capacity enhancement project; and
(3) any obligation to comply with the provisions of the
National Environmental Policy Act of 1969 (42 U.S.C. 4371

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Deadlines.
Publications.

49 USC 47171
note.

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PUBLIC LAW 108–176—DEC. 12, 2003
et seq.) and the regulations issued by the Council on Environmental Quality to carry out such Act.

49 USC 47171
note.

SEC. 309. RELATIONSHIP TO OTHER REQUIREMENTS.

The coordinated review process required under the amendments
made by this subtitle shall apply to an airport capacity enhancement
project at a congested airport whether or not the project is designated by the Secretary of Transportation as a high-priority
transportation infrastructure project under Executive Order 13274
(67 Fed. Reg. 59449; relating to environmental stewardship and
transportation infrastructure project reviews).

Subtitle B—Miscellaneous
49 USC 40101
note.

Deadline.

49 USC 47503
note.

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SEC. 321. REPORT ON LONG-TERM ENVIRONMENTAL IMPROVEMENTS.

(a) IN GENERAL.—The Secretary of Transportation, in consultation with the Administrator of the National Aeronautics and Space
Administration, 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 combustor 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 Secretary 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 is authorized
to be appropriated to the Secretary $500,000 for fiscal year 2004
to carry out this section.
SEC. 322. NOISE DISCLOSURE.

(a) NOISE DISCLOSURE SYSTEM IMPLEMENTATION STUDY.—The
Administrator of the Federal Aviation Administration shall conduct
a study to determine the feasibility of developing a program under
which prospective home buyers of property located in the vicinity
of an airport could be notified of information derived from noise
exposure maps that may affect the use and enjoyment of the property. The study shall assess the scope, administration, usefulness,
and burdensomeness of any such program, the costs and benefits
of such a program, and whether participation in such a program
should be voluntary or mandatory.
(b) PUBLIC AVAILABILITY OF NOISE EXPOSURE MAPS.—The
Administrator shall make noise exposure and land use information

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from noise exposure maps available to the public via the Internet
on its website in an appropriate format.
(c) NOISE EXPOSURE MAP.—In this section, the term ‘‘noise
exposure map’’ means a noise exposure map prepared under section
47503 of title 49, United States Code.
SEC. 323. OVERFLIGHTS OF NATIONAL PARKS.

(a) IN GENERAL.—Section 40128 is amended—
(1) in subsection (a)(1) by inserting ‘‘, as defined by this
section,’’ after ‘‘lands’’ the first place it appears;
(2) in subsections (b)(3)(A) and (b)(3)(B) by inserting ‘‘over
a national park’’ after ‘‘operations’’;
(3) in subsection (b)(3)(C) by inserting ‘‘over a national
park that are also’’ after ‘‘operations’’;
(4) in subsection (b)(3)(D) by striking ‘‘at the park’’ and
inserting ‘‘over a national park’’;
(5) in subsection (b)(3)(E) by inserting ‘‘over a national
park’’ after ‘‘operations’’ the first place it appears;
(6) in subsections (c)(2)(A)(i) and (c)(2)(B) by inserting ‘‘over
a national park’’ after ‘‘operations’’;
(7) in subsection (f)(1) by inserting ‘‘over a national park’’
after ‘‘operation’’;
(8) in subsection (f)(4)(A)—
(A) by striking ‘‘commercial air tour operation’’ and
inserting ‘‘commercial air tour operation over a national
park’’; and
(B) by striking ‘‘park, or over tribal lands,’’ and
inserting ‘‘park (except the Grand Canyon National Park),
or over tribal lands (except those within or abutting the
Grand Canyon National Park),’’;
(9) in subsection (f)(4)(B) by inserting ‘‘over a national
park’’ after ‘‘operation’’; and
(10) in the heading for paragraph (4) of subsection (f)
by inserting ‘‘OVER A NATIONAL PARK’’ after ‘‘OPERATION’’.
(b) QUIET TECHNOLOGY RULEMAKING FOR AIR TOURS OVER
GRAND CANYON NATIONAL PARK.—
(1) DEADLINE FOR RULE.—No later than January 2005,
the Secretary of Transportation shall issue a final rule to establish standards for quiet technology that are reasonably achievable at Grand Canyon National Park, based on the Supplemental Notice of Proposed Rulemaking on Noise Limitations
for Aircraft Operations in the Vicinity of Grand Canyon
National Park, published in the Federal Register on March
24, 2003.
(2) RESOLUTION OF DISPUTES.—Subject to applicable
administrative law and procedures, if the Secretary determines
that a dispute among interested parties (including outside
groups) or government agencies cannot be resolved within a
reasonable time frame and could delay finalizing the rulemaking described in subsection (a), or implementation of final
standards under such rule, due to controversy over adoption
of quiet technology routes, establishment of incentives to
encourage adoption of such routes, establishment of incentives
to encourage adoption of quite technology, or other measures
to achieve substantial restoration of natural quiet, the Secretary
shall refer such dispute to a recognized center for environmental
conflict resolution.

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SEC. 324. NOISE EXPOSURE MAPS.

Section 47503 is amended—
(1) in subsection (a) by striking ‘‘1985,’’ and inserting ‘‘a
forecast period that is at least 5 years in the future’’; and
(2) by striking subsection (b) and inserting the following:
‘‘(b) REVISED MAPS.—If, in an area surrounding an airport,
a change in the operation of the airport would establish a substantial new noncompatible use, or would significantly reduce noise
over existing noncompatible uses, that is not reflected in either
the existing conditions map or forecast map currently on file with
the Federal Aviation Administration, the airport operator shall
submit a revised noise exposure map to the Secretary showing
the new noncompatible use or noise reduction.’’.
Deadline.
49 USC 47508
note.

SEC. 325. IMPLEMENTATION OF CHAPTER 4 NOISE STANDARDS.

49 USC 40101
note.

SEC. 326. REDUCTION OF NOISE AND EMISSIONS FROM CIVILIAN AIRCRAFT.

Not later than April 1, 2005, the Secretary of Transportation
shall issue final regulations to implement Chapter 4 noise standards, consistent with the recommendations adopted by the International Civil Aviation Organization.

(a) ESTABLISHMENT OF RESEARCH PROGRAM.—From amounts
made available under section 48102(a) of title 49, United States
Code, the Secretary of Transportation shall establish a research
program related to reducing community exposure to civilian aircraft
noise or emissions through grants or other measures authorized
under section 106(l)(6) of such title, including reimbursable agreements with other Federal agencies. The program shall include
participation by educational and research institutions that have
existing facilities for developing and testing noise reduction engine
technology.
(b) DESIGNATION OF INSTITUTE AS A CENTER OF EXCELLENCE.—
The Administrator of the Federal Aviation Administration shall
designate an institution described in subsection (a) as a Center
of Excellence for Noise and Emission Research.
SEC. 327. 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.

TITLE IV—AIRLINE SERVICE
IMPROVEMENTS
Subtitle A—Small Community Air Service
SEC. 401. EXEMPTION FROM HOLD-IN REQUIREMENTS.

Section 41734 is amended by adding at the end the following:
‘‘(i) EXEMPTION FROM HOLD-IN REQUIREMENTS.—If, after the
date of enactment of this subsection, an air carrier commences

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air transportation to an eligible place that is not receiving scheduled
passenger air service as a result of the failure of the eligible
place to meet requirements contained in an appropriations Act,
the air carrier shall not be subject to the requirements of subsections (b) and (c) with respect to such air transportation.’’.
SEC.

402.

ADJUSTMENTS TO
INCREASED COSTS.

ACCOUNT

FOR

SIGNIFICANTLY

(a) IN GENERAL.—Section 41737 is amended by adding at the
end the following:
‘‘(e) ADJUSTMENTS TO ACCOUNT FOR SIGNIFICANTLY INCREASED
COSTS.—
‘‘(1) IN GENERAL.—If the Secretary determines that air
carriers are experiencing significantly increased costs in providing air service or air transportation for which compensation
is being paid under this subchapter, the Secretary may increase
the rates of compensation payable under this subchapter without regard to any agreement or requirement relating to the
renegotiation of contracts or any notice requirement under section 41734.
‘‘(2) READJUSTMENT IF COSTS SUBSEQUENTLY DECLINE.—If
an adjustment is made under paragraph (1), and total unit
costs subsequently decrease to at least the total unit cost
reflected in the compensation rate, then the Secretary may
reverse the adjustment previously made under paragraph (1)
without regard to any agreement or requirement relating to
the renegotiation of contracts or any notice requirement under
section 41734.
‘‘(3) SIGNIFICANTLY INCREASED COSTS DEFINED.—In this
subsection, the term ‘significantly increased costs’ means a
total unit cost increase (but not increases in individual unit
costs) of 10 percent or more in relation to the total unit cost
reflected in the compensation rate, based on the carrier’s
internal audit of its financial statements if such cost increase
is incurred for a period of at least 2 consecutive months.’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall take effect 30 days after the date of enactment of this Act.

49 USC 41737
note.

SEC. 403. JOINT PROPOSALS.

Section 41740 is amended by inserting ‘‘, including joint fares,’’
after ‘‘joint proposals’’.
SEC. 404. ESSENTIAL AIR SERVICE AUTHORIZATION.

Section 41742 is amended—
(1) in subsection (a)(2)—
(A) by striking ‘‘$15,000,000’’ and inserting
‘‘$77,000,000’’; and
(B) by inserting before the period at the end ‘‘of which
not more than $12,000,000 per fiscal year may be used
for the marketing incentive program for communities and
for State marketing assistance’’;
(2) by adding at the end of subsection (a) the following:
‘‘(3) AUTHORIZATION FOR ADDITIONAL EMPLOYEES.—In addition to amounts authorized under paragraphs (1) and (2), there
are authorized to be appropriated such sums as may be necessary for the Secretary of Transportation to hire and employ
4 additional employees for the office responsible for carrying
out the essential air service program.’’; and

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(3) by striking subsection (c).

SEC. 405. COMMUNITY AND REGIONAL CHOICE PROGRAMS.

Subchapter II of chapter 417 is amended by adding at the
end the following:
‘‘§ 41745. Community and regional choice programs
‘‘(a) ALTERNATE ESSENTIAL AIR SERVICE PILOT PROGRAM.—
‘‘(1) ESTABLISHMENT.—The Secretary of Transportation
shall establish an alternate essential air service pilot program
in accordance with the requirements of this section.
‘‘(2) ASSISTANCE TO ELIGIBLE PLACES.—In carrying out the
program, the Secretary, instead of paying compensation to an
air carrier to provide essential air service to an eligible place,
may provide assistance directly to a unit of local government
having jurisdiction over the eligible place or a State within
the boundaries of which the eligible place is located.
‘‘(3) USE OF ASSISTANCE.—A unit of local government or
State receiving assistance for an eligible place under the program may use the assistance for any of the following purposes:
‘‘(A) To provide assistance to air carriers that will
use smaller equipment to provide the service and to consider increasing the frequency of service using such smaller
equipment if the Secretary determines that passenger
safety would not be compromised by the use of such smaller
equipment and if the State or unit of local government
waives the minimum service requirements under section
41732(b).
‘‘(B) To provide assistance to an air carrier to provide
on-demand air taxi service to and from the eligible place.
‘‘(C) To provide assistance to a person to provide scheduled or on-demand surface transportation to and from the
eligible place and an airport in another place.
‘‘(D) In combination with other units of local government in the same region, to provide transportation services
to and from all the eligible places in that region at an
airport or other transportation center that can serve all
the eligible places in that region.
‘‘(E) To purchase aircraft to provide transportation to
and from the eligible place or to purchase a fractional
share in an aircraft to provide such transportation after
the effective date of a rule the Secretary issues relating
to fractional ownership.
‘‘(F) To pay for other transportation or related services
that the Secretary may permit.
‘‘(b) COMMUNITY FLEXIBILITY PILOT PROGRAM.—
‘‘(1) IN GENERAL.—The Secretary shall establish a pilot
program for not more than 10 eligible places or consortia of
units of local government.
‘‘(2) ELECTION.—Under the program, the sponsor of an airport serving an eligible place may elect to forego any essential
air service for which compensation is being provided under
this subchapter for a 10-year period in exchange for a grant
from the Secretary equal in value to twice the compensation
paid to provide such service in the most recent 12-month period.

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‘‘(3) GRANT.—Notwithstanding any other provision of law,
the Secretary shall make a grant to each airport sponsor participating in the program for use on any project that—
‘‘(A) is eligible for assistance under chapter 471 and
complies with the requirements of that chapter;
‘‘(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.
‘‘(c) FRACTIONALLY OWNED AIRCRAFT.—After the effective date
of the rule referred to in subsection (a)(3)(E), only those operating
rules that relate to an aircraft that is fractionally owned apply
when an aircraft described in subsection (a)(3)(E) is used to provide
transportation described in subsection (a)(3)(E).
‘‘(d) APPLICATIONS.—
‘‘(1) IN GENERAL.—An entity seeking to participate in a
program under this section shall submit to the Secretary an
application in such form and containing such information as
the Secretary may require.
‘‘(2) REQUIRED INFORMATION.—At a minimum, the application shall include—
‘‘(A) a statement of the amount of compensation or
assistance required; and
‘‘(B) a description of how the compensation or assistance will be used.
‘‘(e) PARTICIPATION REQUIREMENTS.—An eligible place for which
compensation or assistance is provided under this section in a
fiscal year shall not be eligible in that fiscal year for the essential
air service that it would otherwise be entitled to under this subchapter.
‘‘(f) SUBSEQUENT PARTICIPATION.—A unit of local government
participating in the program under this subsection (a) in a fiscal
year shall not be prohibited from participating in the basic essential
air service program under this subchapter in a subsequent fiscal
year if such unit is otherwise eligible to participate in such program.
‘‘(g) FUNDING.—Amounts appropriated or otherwise made available to carry out the essential air service program under this
subchapter shall be available to carry out this section.’’.
SEC. 406. CODE-SHARING PILOT PROGRAM.

(a) IN GENERAL.—The Secretary of Transportation shall establish a pilot program under which the Secretary may require air
carriers providing service with compensation under subchapter II
of chapter 417 of title 49, United States Code, and major air
carriers (as defined in section 41716(a)(2) of such title) serving
large hub airports (as defined in section 40102 of such title) 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.
(b) LIMITATION.—The Secretary may not require air carriers
to participate in the pilot program under this section for more
than 10 communities receiving service under subchapter II of
chapter 417 of title 49, United States Code.

49 USC 41731
note.

SEC. 407. TRACKING SERVICE.

Subchapter II of chapter 417 is further amended by adding
at the end the following:

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‘‘§ 41746. Tracking service
‘‘The Secretary of Transportation shall require a carrier that
provides essential air service to an eligible place and that receives
compensation for such service under this subchapter to report not
less than semiannually—
‘‘(1) the percentage of flights to and from the place that
arrive on time as defined by the Secretary; and
‘‘(2) such other information as the Secretary considers necessary to evaluate service provided to passengers traveling
to and from such place.’’.
SEC. 408. EAS LOCAL PARTICIPATION PROGRAM.

(a) IN GENERAL.—Subchapter II of chapter 417 is further
amended by adding at the end the following:
‘‘§ 41747. EAS local participation program
‘‘(a) IN GENERAL.—The Secretary of Transportation shall establish a pilot program under which not more than 10 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 4-year period.
‘‘(b) DESIGNATION OF COMMUNITIES.—
‘‘(1) IN GENERAL.—The Secretary may not designate any
community under this section 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.
‘‘(2) ONE COMMUNITY PER STATE.—The Secretary may not
designate—
‘‘(A) more than 1 community per State under this
section; or
‘‘(B) 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 as part of a pilot program under section
41745.
‘‘(c) APPEAL OF DESIGNATION.—A community may appeal its
designation under this section. The Secretary may withdraw the
designation of a community under this section based on—
‘‘(1) the airport sponsor’s ability to pay; or
‘‘(2) 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.—
‘‘(1) 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, prepurchase
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.
‘‘(2) APPLICATION WITH OTHER MATCHING REQUIREMENTS.—
This section shall apply to the Federal share of essential air

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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 section 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 section may participate in any
program (including pilot programs) authorized by this subchapter
for which it is otherwise eligible—
‘‘(1) without regard to any limitation on the number of
communities that may participate in that program; and
‘‘(2) 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 Committee on Commerce,
Science, and Transportation of the Senate and the Committee on
Transportation and Infrastructure of the House of Representatives
on—
‘‘(1) the economic condition of communities designated
under this section before their designation;
‘‘(2) the impact of designation under this section on such
communities at the end of each of the 3 years following their
designation; and
‘‘(3) the impact of designation on air traffic patterns
affecting air transportation to and from communities designated
under this section.’’.
(b) CONFORMING AMENDMENT.—The analysis for subchapter II
of chapter 417 is amended by adding at the end the following:
‘‘41745. Community and regional choice programs.
‘‘41746. Tracking service.
‘‘41747. EAS local participation program.’’.
SEC. 409. MEASUREMENT OF HIGHWAY MILES FOR PURPOSES OF
DETERMINING ELIGIBILITY OF ESSENTIAL AIR SERVICE
SUBSIDIES.

49 USC 41731
note.

(a) REQUEST FOR SECRETARIAL REVIEW.—An eligible place (as
defined in section 41731 of title 49, United States Code) with
respect to which the Secretary has, in the 2-year period ending
on the date of enactment of this Act, eliminated (or tentatively
eliminated) compensation for essential air service to such place,
or terminated (or tentatively terminated) the compensation eligibility of such place for essential air service, under section 332
of the Department of Transportation and Related Agencies Appropriations Act, 2000 (49 U.S.C. 41731 note), section 205 of the
Wendell H. Ford Aviation Investment and Reform Act for the 21st
Century (49 U.S.C. 41731 note), or any prior law of similar effect
based on the highway mileage of such place from the nearest
hub airport (as defined in section 40102 of such title), may request
the Secretary to review such action.
(b) DETERMINATION OF MILEAGE.—In reviewing an action under
subsection (a), the highway mileage between an eligible place and
the nearest medium hub airport or large hub airport is the highway
mileage of the most commonly used route between the place and
the medium hub airport or large hub airport. In identifying such
route, the Secretary shall identify the most commonly used route
for a community by—

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(1) consulting with the Governor of a State or the Governor’s designee; and
(2) considering the certification of the Governor of a State
or the Governor’s designee as to the most commonly used
route.
(c) ELIGIBILITY DETERMINATION.—Not later than 60 days after
receiving a request under subsection (a), the Secretary shall—
(1) determine whether the eligible place would have been
subject to an elimination of compensation eligibility for essential
air service, or termination of the eligibility of such place for
essential air service, under the provisions of law referred to
in subsection (a) based on the determination of the highway
mileage of such place from the nearest medium hub airport
or large hub airport under subsection (b); and
(2) issue a final order with respect to the eligibility of
such place for essential air service compensation under subchapter II of chapter 417 of title 49, United States Code.
(d) LIMITATION ON PERIOD OF FINAL ORDER.—A final order
issued under subsection (c) shall terminate on September 30, 2007.

Deadline.

Termination
date.
49 USC 41748
note.

SEC. 410. INCENTIVE PROGRAM.

(a) PURPOSES.—The purposes of this section 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.
(b) MARKETING PROGRAM.—Subchapter II of chapter 417 is
further amended by adding at the end the following:
‘‘§ 41748. Marketing program
‘‘(a) IN GENERAL.—The Secretary of Transportation shall establish a marketing incentive program for eligible places that receive
subsidized service by an air carrier under section 41733. Under
the program, the sponsor of the airport serving such an eligible
place may receive a grant of not more than $50,000 in a fiscal
year 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 a marketing plan to be developed and implemented under this section shall come from non-Federal sources.
For purposes of this section—
‘‘(A) the non-Federal portion of the publicly financed
costs may be derived from contributions in kind; and
‘‘(B) matching contributions from a State or unit of
local government may not be derived, directly or indirectly,
from Federal funds, but the use by the State or unit of
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

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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 under this
section with respect to an eligible place, the Secretary determines that the marketing plan has increased average monthly
boardings, or the level of passenger usage, at the airport serving
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 under
this subsection 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 under this section with respect to an eligible place,
the Secretary determines that the marketing plan has increased
average monthly boardings, or the level of passenger usage,
at the airport serving 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 nonFederal sources under this subsection for the following 12month period.’’.
(b) CONFORMING AMENDMENT.—The analysis for subchapter II
of chapter 417 is further amended by adding at the end the following:
‘‘41748. Marketing program.’’.
SEC.

411.

NATIONAL COMMISSION
SERVICE.

ON

SMALL

COMMUNITY

AIR

(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
nine members of whom—
(A) three members shall be appointed by the Secretary;
(B) two members shall be appointed by the majority
leader of the Senate;
(C) one member shall be appointed by the minority
leader of the Senate;
(D) two members shall be appointed by the Speaker
of the House of Representatives; and
(E) one 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) one member shall be a representative of a regional
airline;
(B) one member shall be a representative of a small
hub airport or nonhub airport (as such terms are defined
in section 40102 of title 49, United States Code); and
(C) one member shall be a representative of a State
aviation agency.
(3) TERMS.—Members shall be appointed for the life of
the Commission.

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Deadline.

Establishment.

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(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 Secretary shall designate, from among
the individuals appointed under subsection (b)(1), an individual
to serve as chairperson of the Commission.
(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 of the Commission
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 of the Commission, 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

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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 of the Commission,
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.
(l) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated to the Secretary $250,000 to be used to fund
the Commission.
SEC. 412. SMALL COMMUNITY AIR SERVICE.

Section 41743 is amended—
(1) in the heading of subsection (a) by striking ‘‘PILOT’’;
(2) in subsection (a) by striking ‘‘pilot’’;
(3) in subsection (c)—
(A) by striking paragraph (3) and inserting the following:
‘‘(3) STATE LIMIT.—Not more than 4 communities or consortia of communities, or a combination thereof, from the same
State may be selected to participate in the program in any
fiscal year.’’;
(B) by adding at the end of paragraph (4) the following:
‘‘No community, consortia of communities, nor combination
thereof may participate in the program in support of the
same project more than once, but any community, consortia
of communities, or combination thereof may apply, subsequent to such participation, to participate in the program
in support of a different project.’’; and
(C) in paragraph (5)—
(i) by striking ‘‘and’’ at the end of subparagraph
(C);
(ii) by striking the period at the end of subparagraph (D) and inserting ‘‘; and’’; and
(iii) by adding at the end the following:
‘‘(E) the assistance will be used in a timely fashion.’’;
(4) in subsection (e)(2)—
(A) by striking ‘‘and’’ the first place it appears and
inserting a comma; and
(B) by inserting after ‘‘2003’’ the following ‘‘, and
$35,000,000 for each of fiscal years 2004 through 2008’’;
and
(5) in subsection (f) by striking ‘‘pilot’’.

Subtitle B—Miscellaneous
SEC. 421. DATA ON INCIDENTS AND COMPLAINTS INVOLVING PASSENGER AND BAGGAGE SECURITY SCREENING.

Section 329 is amended by adding at the end the following:
‘‘(e) INCIDENTS AND COMPLAINTS INVOLVING PASSENGER AND
BAGGAGE SECURITY SCREENING.—

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PUBLIC LAW 108–176—DEC. 12, 2003
‘‘(1) PUBLICATION OF DATA.—The Secretary of Transportation shall publish data on incidents and complaints involving
passenger and baggage security screening in a manner comparable to other consumer complaint and incident data.
‘‘(2) MONTHLY REPORTS FROM SECRETARY OF HOMELAND
SECURITY.—To assist in the publication of data under paragraph
(1), the Secretary of Transportation may request the Secretary
of Homeland Security to periodically report on the number
of complaints about security screening received by the Secretary
of Homeland Security.’’.

SEC. 422. DELAY REDUCTION ACTIONS.

(a) IN GENERAL.—Subchapter I of chapter 417 is amended
by adding at the end the following new section:

Public
information.
Deadline.

‘‘§ 41722. Delay reduction actions
‘‘(a) 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—
‘‘(1) the Administrator determines that it is necessary to
convene such a meeting; and
‘‘(2) the Secretary determines that the meeting is necessary
to meet a serious transportation need or achieve an important
public benefit.
‘‘(b) MEETING CONDITIONS.—Any meeting under subsection (a)—
‘‘(1) shall be chaired by the Administrator;
‘‘(2) shall be open to all scheduled air carriers; and
‘‘(3) shall be limited to discussions involving the airports
and time periods described in the Administrator’s determination.
‘‘(c) 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.
‘‘(d) DELAY REDUCTION OFFERS.—An air carrier attending the
meeting shall make any offer to meet a flight reduction target
to the Administrator rather than to another carrier.
‘‘(e) 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) CONFORMING AMENDMENT.—The analysis for chapter 417
is amended by striking the item relating to section 41721 and
inserting the following:
‘‘41721. Reports by carriers on incidents involving animals during air transport.
‘‘41722. Delay reduction actions.’’.
SEC. 423. COLLABORATIVE DECISIONMAKING PILOT PROGRAM.

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

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‘‘§ 40129. Collaborative decisionmaking pilot program
‘‘(a) ESTABLISHMENT.—Not later than 90 days after the date
of enactment of this section, the Administrator of the Federal Aviation Administration shall establish a collaborative decisionmaking
pilot program in accordance with this section.

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‘‘(b) DURATION.—Except as provided in subsection (k), the pilot
program shall be in effect for a period of 2 years.
‘‘(c) GUIDELINES.—
‘‘(1) ISSUANCE.—The Administrator, with the concurrence
of the Attorney General, shall issue guidelines concerning the
pilot program. Such guidelines, at a minimum, shall—
‘‘(A) define a capacity reduction event;
‘‘(B) establish the criteria and process for determining
when a capacity reduction event exists that warrants the
use of collaborative decisionmaking among carriers at airports participating in the pilot program; and
‘‘(C) prescribe the methods of communication to be
implemented among carriers during such an event.
‘‘(2) VIEWS.—The Administrator may obtain the views of
interested parties in issuing the guidelines.
‘‘(d) EFFECT OF DETERMINATION OF EXISTENCE OF CAPACITY
REDUCTION EVENT.—Upon a determination by the Administrator
that a capacity reduction event exists, the Administrator may
authorize air carriers and foreign air carriers operating at an airport
participating in the pilot program to communicate for a period
of time not to exceed 24 hours with each other concerning changes
in their respective flight schedules in order to use air traffic capacity
most effectively. The Administration shall facilitate and monitor
such communication. The Attorney General, or the Attorney General’s designee, may monitor such communication.
‘‘(e) SELECTION OF PARTICIPATING AIRPORTS.—Not later than
30 days after the date on which the Administrator establishes
the pilot program, the Administrator shall select 2 airports to
participate in the pilot program from among the most capacityconstrained airports in the Nation based on the Administration’s
Airport Capacity Benchmark Report 2001 or more recent data on
airport capacity that is available to the Administrator. The Administrator shall select an airport for participation in the pilot program
if the Administrator determines that collaborative decisionmaking
among air carriers and foreign air carriers would reduce delays
at the airport and have beneficial effects on reducing delays in
the national airspace system as a whole.
‘‘(f) ELIGIBILITY OF AIR CARRIERS.—An air carrier or foreign
air carrier operating at an airport selected to participate in the
pilot program is eligible to participate in the pilot program if
the Administrator determines that the carrier has the operational
and communications capability to participate in the pilot program.
‘‘(g) MODIFICATION OR TERMINATION OF PILOT PROGRAM AT AN
AIRPORT.—The Administrator, with the concurrence of the Attorney
General, may modify or end the pilot program at an airport before
the term of the pilot program has expired, or may ban an air
carrier or foreign air carrier from participating in the program,
if the Administrator determines that the purpose of the pilot program is not being furthered by participation of the airport or
air carrier or if the Secretary of Transportation, with the concurrence of the Attorney General, finds that the pilot program or
the participation of an air carrier or foreign air carrier in the
pilot program has had, or is having, an adverse effect on competition
among carriers.
‘‘(h) ANTITRUST IMMUNITY.—
‘‘(1) IN GENERAL.—Unless, within 5 days after receiving
notice from the Secretary of the Secretary’s intention to exercise

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authority under this subsection, the Attorney General submits
to the Secretary a written objection to such action, including
reasons for such objection, the Secretary may exempt an air
carrier’s or foreign air carrier’s activities that are necessary
to participate in the pilot program under this section from
the antitrust laws for the sole purpose of participating in the
pilot program. Such exemption shall not extend to any discussions, agreements, or activities outside the scope of the pilot
program.
‘‘(2) 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).
‘‘(i) CONSULTATION WITH ATTORNEY GENERAL.—The Secretary
shall consult with the Attorney General regarding the design and
implementation of the pilot program, including determining whether
a limit should be set on the number of occasions collaborative
decisionmaking could be employed during the initial 2-year period
of the pilot program.
‘‘(j) EVALUATION.—
‘‘(1) IN GENERAL.—Before the expiration of the 2-year period
for which the pilot program is authorized under subsection
(b), the Administrator shall determine whether the pilot program has facilitated more effective use of air traffic capacity
and the Secretary, with the concurrence of the Attorney General, shall determine whether the pilot program has had an
adverse effect on airline competition or the availability of air
services to communities. The Administrator shall also examine
whether capacity benefits resulting from the participation in
the pilot program of an airport resulted in capacity benefits
to other parts of the national airspace system.
‘‘(2) OBTAINING NECESSARY DATA.—The Administrator may
require participating air carriers and airports to provide data
necessary to evaluate the pilot program’s impact.
‘‘(k) EXTENSION OF PILOT PROGRAM.—At the end of the 2-year
period for which the pilot program is authorized, the Administrator,
with the concurrence of the Attorney General, may continue the
pilot program for an additional 2 years and expand participation
in the program to up to 7 additional airports if the Administrator
determines pursuant to subsection (j) that the pilot program has
facilitated more effective use of air traffic capacity and if the Secretary, with the concurrence of the Attorney General, determines
that the pilot program has had no adverse effect on airline competition or the availability of air services to communities. The Administrator shall select the additional airports to participate in the
extended pilot program in the same manner in which airports
were initially selected to participate.’’.
(b) CONFORMING AMENDMENT.—The analysis for chapter 401
is amended by adding at the end the following:
‘‘40129. Collaborative decisionmaking pilot program.’’.
SEC. 424. COMPETITION DISCLOSURE REQUIREMENT FOR LARGE AND
MEDIUM HUB AIRPORTS.

Section 47107 is amended by adding at the end the following:
‘‘(s) 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 large hub airport or a medium

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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.—On February 1 and August 1
of each year, an airport that during the previous 6-month
period has been unable to accommodate one or more requests
by an air carrier for access to gates or other facilities at that
airport in order to provide service to the airport or to expand
service at the airport shall transmit a report to the Secretary
that—
‘‘(A) describes the requests;
‘‘(B) provides an explanation as to why the requests
could not be accommodated; and
‘‘(C) provides a time frame within which, if any, the
airport will be able to accommodate the requests.
‘‘(3) SUNSET PROVISION.—This subsection shall cease to be
effective beginning October 1, 2008.’’.

Deadlines.
Reports.

SEC. 425. SLOT EXEMPTIONS AT RONALD REAGAN WASHINGTON
NATIONAL AIRPORT.

(a) BEYOND-PERIMETER EXEMPTIONS.—Section 41718(a) is
amended by striking ‘‘12’’ and inserting ‘‘24’’.
(b) WITHIN-PERIMETER EXEMPTIONS.—Section 41718(b) is
amended—
(1) by striking ‘‘12’’ and inserting ‘‘20’’; and
(2) by striking ‘‘that were designated as medium hub or
smaller airports’’.
(c) LIMITATIONS.—
(1) GENERAL EXEMPTIONS.—Section 41718(c)(2) is amended
by striking ‘‘two’’ and inserting ‘‘3’’.
(2) ALLOCATION OF WITHIN-PERIMETER EXEMPTIONS.—Section 41718(c)(3) is amended—
(A) in subparagraph (A)—
(i) by striking ‘‘four’’ and inserting ‘‘without regard
to the criteria contained in subsection (b)(1), six’’; and
(ii) by striking ‘‘and’’ at the end;
(B) in subparagraph (B)—
(i) by striking ‘‘eight’’ and inserting ‘‘ten’’; and
(ii) by striking the period at the end and inserting
‘‘; and’’; and
(C) by adding at the end the following:
‘‘(C) four shall be for air transportation to airports
without regard to their size.’’.
(d) APPLICATION PROCEDURES.—Section 41718(d) is amended
to read as follows:
‘‘(d) APPLICATION PROCEDURES.—The Secretary shall establish
procedures to ensure that all requests for exemptions under this
section are granted or denied within 90 days after the date on
which the request is made.’’.

Deadline.

SEC. 426. DEFINITION OF COMMUTER AIRCRAFT.

(a) IN GENERAL.—Section 41718 is amended by adding at the
end the following:
‘‘(f) COMMUTERS DEFINED.—For purposes of aircraft operations
at Ronald Reagan Washington National Airport under subpart K

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49 USC 41718
note.

PUBLIC LAW 108–176—DEC. 12, 2003

of part 93 of title 14, Code of Federal Regulations, the term ‘commuters’ means aircraft operations using aircraft having a certificated maximum seating capacity of 76 or less.’’.
(b) REGULATIONS.—The Administrator of the Federal Aviation
Administration shall revise regulations to take into account the
amendment made by subsection (a).
SEC. 427. AIRFARES FOR MEMBERS OF THE ARMED FORCES.

(a) FINDINGS.—Congress finds that—
(1) the Armed Forces is comprised of approximately
1,400,000 members who are stationed on active duty at more
than 6,000 military bases in 146 different countries;
(2) the United States is indebted to the members of the
Armed Forces, many of whom are in grave danger due to
their engagement in, or exposure to, combat;
(3) military service, especially in the current war against
terrorism, often requires members of the Armed Forces to be
separated from their families on short notice, for long periods
of time, and under very stressful conditions;
(4) the unique demands of military service often preclude
members of the Armed Forces from purchasing discounted
advance airline tickets in order to visit their loved ones at
home; and
(5) it is the patriotic duty of the people of the United
States to support the members of the Armed Forces who are
defending the Nation’s interests around the world at great
personal sacrifice.
(b) SENSE OF CONGRESS.—It is the sense of Congress that
each United States air carrier should—
(1) establish for all members of the Armed Forces on active
duty reduced air fares that are comparable to the lowest airfare
for ticketed flights; and
(2) offer flexible terms that allow members of the Armed
Forces on active duty to purchase, modify, or cancel tickets
without time restrictions, fees, and penalties.
SEC. 428. AIR CARRIERS REQUIRED TO HONOR TICKETS FOR SUSPENDED SERVICE.

Section 145(c) of the Aviation and Transportation Security Act
(49 U.S.C. 40101 note) is amended by striking ‘‘more than’’ and
all that follows through ‘‘after’’ and inserting ‘‘more than 36 months
after’’.

TITLE V—AVIATION SAFETY
SEC. 501. COUNTERFEIT OR FRAUDULENTLY REPRESENTED PARTS
VIOLATIONS.

Section 44726(a)(1) is amended—
(1) by striking ‘‘or’’ at the end of subparagraph (A);
(2) by redesignating subparagraph (B) as subparagraph
(C);
(3) by inserting after subparagraph (A) the following:
‘‘(B) whose certificate is revoked under subsection (b);
or’’; and
(4) in subparagraph (C) (as redesignated by paragraph
(2) of this section) by striking ‘‘convicted of such a violation.’’
and inserting ‘‘described in subparagraph (A) or (B).’’.

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117 STAT. 2557

SEC. 502. RUNWAY SAFETY STANDARDS.

(a) IN GENERAL.—Chapter 447 is amended by adding at the
end the following:
‘‘§ 44727. Runway safety areas
‘‘(a) AIRPORTS IN ALASKA.—An airport owner or operator in
the State of Alaska shall not be required to reduce the length
of a runway or declare the length of a runway to be less than
the actual pavement length in order to meet standards of the
Federal Aviation Administration applicable to runway safety areas.
‘‘(b) STUDY.—
‘‘(1) IN GENERAL.—The Secretary shall conduct a study
of runways at airports in States other than Alaska to determine
which airports are affected by standards of the Federal Aviation
Administration applicable to runway safety areas and to assess
how operations at those airports would be affected if the owner
or operator of the airport is required to reduce the length
of a runway or declare the length of a runway to be less
than the actual pavement length in order to meet such standards.
‘‘(2) REPORT.—Not later than 9 months after the date of
enactment of this section, the Secretary shall transmit to the
Committee on Commerce, Science, and Transportation of the
Senate and the Committee on Transportation and Infrastructure of the House of Representatives a report containing the
results of the study.’’.
(b) CONFORMING AMENDMENT.—The analysis for chapter 447
is amended by adding at the end the following:

Deadline.

‘‘44727. Runway safety areas.’’.
SEC. 503. 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 (or $1,100 if the person is an individual or small
business concern)’’;
(2) by striking ‘‘or’’ the last place 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;
(5) by striking ‘‘41715’’ each place it appears in paragraph
(2), as redesignated, and inserting ‘‘41719’’;
(6) by striking ‘‘paragraphs (1) and (2)’’ in paragraph (4),
as redesignated, and inserting ‘‘paragraph (1)’’; and
(7) by adding at the end the following:
‘‘(5) PENALTIES APPLICABLE TO INDIVIDUALS AND SMALL
BUSINESS CONCERNS.—
‘‘(A) An individual (except an airman serving as an
airman) or small business concern is liable to the Government for a civil penalty of not more than $10,000 for
violating—
‘‘(i) chapter 401 (except sections 40103(a) and (d),
40105, 40106(b), 40116, and 40117), section 44502 (b)
or (c), chapter 447 (except sections 44717–44723), or

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chapter 449 (except sections 44902, 44903(d), 44904,
and 44907–44909) of this title; or
‘‘(ii) a regulation prescribed or order issued under
any provision to which clause (i) applies.
‘‘(B) A civil penalty of not more than $10,000 may
be imposed for each violation under paragraph (1) committed by an individual or small business concern related
to—
‘‘(i) the transportation of hazardous material;
‘‘(ii) the registration or recordation under chapter
441 of an aircraft not used to provide air transportation;
‘‘(iii) a violation of section 44718(d), relating to
the limitation on construction or establishment of landfills;
‘‘(iv) a violation of section 44725, relating to the
safe disposal of life-limited aircraft parts; or
‘‘(v) a violation of section 40127 or section 41705,
relating to discrimination.
‘‘(C) Notwithstanding paragraph (1), the maximum civil
penalty for a violation of section 41719 committed by an
individual or small business concern shall be $5,000 instead
of $1,000.
‘‘(D) Notwithstanding paragraph (1), the maximum
civil penalty for a violation of section 41712 (including
a regulation prescribed or order issued under such section)
or any other regulation prescribed by the Secretary by
an individual or small business concern that is intended
to afford consumer protection to commercial air transportation passengers shall be $2,500 for each violation.’’.
(b) INCREASE IN LIMIT ON ADMINISTRATIVE AUTHORITY AND
CIVIL PENALTY.—Section 46301(d) is amended—
(1) by striking ‘‘more than $50,000;’’ in paragraph (4)(A)
and inserting ‘‘more than—
‘‘(i) $50,000 if the violation was committed by any
person before the date of enactment of the Vision 100—
Century of Aviation Reauthorization Act;
‘‘(ii) $400,000 if the violation was committed by
a person other than an individual or small business
concern on or after that date; or
‘‘(iii) $50,000 if the violation was committed by
an individual or small business concern on or after
that date;’’; and
(2) by striking ‘‘is $50,000.’’ in paragraph (8) and inserting
‘‘is—
‘‘(A) $50,000 if the violation was committed by any
person before the date of enactment of the Vision 100—
Century of Aviation Reauthorization Act;
‘‘(B) $400,000 if the violation was committed by a person other than an individual or small business concern
on or after that date; or
‘‘(C) $50,000 if the violation was committed by an
individual or small business concern on or after that date.’’.
(c) SMALL BUSINESS CONCERN DEFINED.—Section 46301 is
amended by adding at the end the following:

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117 STAT. 2559

‘‘(i) SMALL BUSINESS CONCERN DEFINED.—In this section, the
term ‘small business concern’ has the meaning given that term
in section 3 of the Small Business Act (15 U.S.C. 632).’’.
(d) CONFORMING AMENDMENTS.—Title 49 is amended—
(1) in section 41705(b) by striking ‘‘46301(a)(3)(E)’’ and
inserting ‘‘46301’’; and
(2) in section 46304(a) by striking ‘‘, (2), or (3)’’.
SEC. 504. IMPROVEMENT OF CURRICULUM STANDARDS FOR AVIATION
MAINTENANCE TECHNICIANS.

(a) IN GENERAL.—The Administrator of the Federal Aviation
Administration shall ensure that the training standards for airframe and powerplant mechanics under part 65 of title 14, Code
of Federal Regulations, are updated and revised in accordance
with this section. The Administrator may update and revise the
training standards through the initiation of a formal rulemaking
or by issuing an advisory circular or other agency guidance.
(b) ELEMENTS FOR CONSIDERATION.—The updated and revised
standards required under subsection (a) shall include those curriculum adjustments that are necessary to more accurately reflect
current technology and maintenance practices.
(c) CERTIFICATION.—Any adjustment or modification of current
curriculum standards made pursuant to this section shall be
reflected in the certification examinations of airframe and powerplant mechanics.
(d) COMPLETION.—The revised and updated training standards
required by subsection (a) shall be completed not later than 12
months after the date of enactment of this Act.
(e) PERIODIC REVIEWS AND UPDATES.—The Administrator shall
review the content of the curriculum standards for training airframe
and powerplant mechanics referred to in subsection (a) every 3
years after completion of the revised and updated training standards required under subsection (a) as necessary to reflect current
technology and maintenance practices.

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49 USC 44515
note.

Deadline.

SEC. 505. ASSESSMENT OF WAKE TURBULENCE RESEARCH AND
DEVELOPMENT PROGRAM.

49 USC 44505
note.

(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

Contracts.

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Transportation of the Senate not later than 1 year after the date
of enactment of this Act.
(c) AUTHORIZATION OF APPROPRIATIONS.—There is authorized
to be appropriated to the Administrator of the Federal Aviation
Administration $500,000 for fiscal year 2004 to carry out this section.
49 USC 44701
note.

Deadline.

Deadlines.

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SEC. 506. FAA INSPECTOR TRAINING.

(a) STUDY.—
(1) IN GENERAL.—The Comptroller General shall conduct
a study of the training of the aviation safety inspectors of
the Federal Aviation Administration (in this section referred
to as ‘‘FAA inspectors’’).
(2) CONTENTS.—The study shall include—
(A) an analysis of the type of training provided to
FAA inspectors;
(B) actions that the Federal Aviation Administration
has undertaken to ensure that FAA inspectors receive upto-date training on the latest technologies;
(C) the extent of FAA inspector training provided by
the aviation industry and whether such training is provided
without charge or on a quid pro quo basis; and
(D) the amount of travel that is required of FAA inspectors in receiving training.
(3) REPORT.—Not later than 1 year after the date of enactment of this Act, the Comptroller General shall transmit to
the Committee on Transportation and Infrastructure of the
House of Representatives and the Committee on Commerce,
Science, and Transportation of the Senate a report on the
results of the study.
(b) SENSE OF THE HOUSE.—It is the sense of the House of
Representatives that—
(1) FAA inspectors should be encouraged to take the most
up-to-date initial and recurrent training on the latest aviation
technologies;
(2) FAA inspector training should have a direct relation
to an individual’s job requirements; and
(3) if possible, a FAA inspector should be allowed to take
training at the location most convenient for the inspector.
(c) WORKLOAD OF INSPECTORS.—
(1) STUDY BY NATIONAL ACADEMY OF SCIENCES.—Not later
than 90 days after the date of enactment of this Act, the
Administrator of the Federal Aviation Administration shall
make appropriate arrangements for the National Academy of
Sciences to conduct a study of the assumptions and methods
used by the Federal Aviation Administration to estimate
staffing standards for FAA inspectors to ensure proper oversight
over the aviation industry, including the designee program.
(2) CONTENTS.—The study shall include the following:
(A) A suggested method of modifying FAA inspectors
staffing models for application to current local conditions
or applying some other approach to developing an objective
staffing standard.
(B) The approximate cost and length of time for developing such models.
(3) REPORT.—Not later than 12 months after the initiation
of the arrangements under subsection (a), the National

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Academy of Sciences shall transmit to Congress a report on
the results of the study.
SEC. 507. 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 a plan containing an
implementation schedule 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) shall set forth the action the
Administration will take under the plan—
(1) to develop specific, clear, and meaningful inspection
guidance for the use by 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.

Deadline.

TITLE VI—AVIATION SECURITY
SEC. 601. CERTIFICATE ACTIONS IN RESPONSE TO A SECURITY
THREAT.

(a) IN GENERAL.—Chapter 461 is amended by adding at the
end the following:
‘‘§ 46111. Certificate actions in response to a security threat
‘‘(a) ORDERS.—The Administrator of Federal Aviation Administration shall issue an order amending, modifying, suspending, or
revoking any part of a certificate issued under this title if the
Administrator is notified by the Under Secretary for Border and
Transportation Security of the Department of Homeland Security
that the holder of the certificate poses, or is suspected of posing,
a risk of air piracy or terrorism or a threat to airline or passenger
safety. If requested by the Under Secretary, the order shall be
effective immediately.
‘‘(b) HEARINGS FOR CITIZENS.—An individual who is a citizen
of the United States who is adversely affected by an order of
the Administrator under subsection (a) is entitled to a hearing
on the record.
‘‘(c) HEARINGS.—When conducting a hearing under this section,
the administrative law judge shall not be bound by findings of

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117 STAT. 2562

Establishment.

Regulations.
Procedures.

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PUBLIC LAW 108–176—DEC. 12, 2003

fact or interpretations of laws and regulations of the Administrator
or the Under Secretary.
‘‘(d) APPEALS.—An appeal from a decision of an administrative
law judge as the result of a hearing under subsection (b) shall
be made to the Transportation Security Oversight Board established
by section 115. The Board shall establish a panel to review the
decision. The members of this panel (1) shall not be employees
of the Transportation Security Administration, (2) shall have the
level of security clearance needed to review the determination made
under this section, and (3) shall be given access to all relevant
documents that support that determination. The panel may affirm,
modify, or reverse the decision.
‘‘(e) REVIEW.—A person substantially affected by an action of
a panel under subsection (d), or the Under Secretary when the
Under Secretary decides that the action of the panel under this
section will have a significant adverse impact on carrying out this
part, may obtain review of the order under section 46110. The
Under Secretary and the Administrator shall be made a party
to the review proceedings. Findings of fact of the panel are conclusive if supported by substantial evidence.
‘‘(f) EXPLANATION OF DECISIONS.—An individual who commences an appeal under this section shall receive a written explanation of the basis for the determination or decision and all relevant
documents that support that determination to the maximum extent
that the national security interests of the United States and other
applicable laws permit.
‘‘(g) CLASSIFIED EVIDENCE.—
‘‘(1) IN GENERAL.—The Under Secretary, in consultation
with the Administrator and the Director of Central Intelligence,
shall issue regulations to establish procedures by which the
Under Secretary, as part of a hearing conducted under this
section, may provide an unclassified summary of classified evidence upon which the order of the Administrator was based
to the individual adversely affected by the order.
‘‘(2) REVIEW OF CLASSIFIED EVIDENCE BY ADMINISTRATIVE
LAW JUDGE.—
‘‘(A) REVIEW.—As part of a hearing conducted under
this section, if the order of the Administrator issued under
subsection (a) is based on classified information (as defined
in section 1(a) of the Classified Information Procedures
Act (18 U.S.C. App.), such information may be submitted
by the Under Secretary to the reviewing administrative
law judge, pursuant to appropriate security procedures,
and shall be reviewed by the administrative law judge
ex parte and in camera.
‘‘(B) SECURITY CLEARANCES.—Pursuant to existing
procedures and requirements, the Under Secretary shall,
in coordination, as necessary, with the heads of other
affected departments or agencies, ensure that administrative law judges reviewing orders of the Administrator under
this section possess security clearances appropriate for
their work under this section.
‘‘(3) UNCLASSIFIED SUMMARIES OF CLASSIFIED EVIDENCE.—
As part of a hearing conducted under this section and upon
the request of the individual adversely affected by an order
of the Administrator under subsection (a), the Under Secretary
shall provide to the individual and reviewing administrative

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117 STAT. 2563

law judge, consistent with the procedures established under
paragraph (1), an unclassified summary of any classified
information upon which the order of the Administrator is
based.’’.
(b) CONFORMING AMENDMENT.—The analysis for chapter 461
is amended by adding at the end the following:
‘‘46111. Certificate actions in response to a security threat.’’.
SEC. 602. JUSTIFICATION FOR AIR DEFENSE IDENTIFICATION ZONE.

(a) IN GENERAL.—If the Administrator of the Federal Aviation
Administration establishes an Air Defense Identification Zone (in
this section referred as an ‘‘ADIZ’’), the Administrator 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, not later than 60 days after the
date of establishing the ADIZ, a report containing an explanation
of the need for the ADIZ. The Administrator also shall transmit
to the Committees updates of the report every 60 days until the
ADIZ is rescinded. The reports and updates shall be transmitted
in classified form.
(b) EXISTING ADIZ.—If an ADIZ is in effect on the date of
enactment of this Act, the Administrator shall transmit an initial
report under subsection (a) not later than 30 days after such date
of enactment.
(c) DESCRIPTION OF CHANGES TO IMPROVE OPERATIONS.—A
report transmitted by the Administrator under this section shall
include a description of any changes in procedures or requirements
that could improve operational efficiency or minimize operational
impacts of the ADIZ on pilots and controllers. This portion of
the report may be transmitted in classified or unclassified form.
(d) DEFINITION.—In this section, the terms ‘‘Air Defense Identification Zone’’ and ‘‘ADIZ’’ each mean a zone established by the
Administrator with respect to airspace under 18,000 feet in approximately a 15- to 38-mile radius around Washington, District of
Columbia, for which security measures are extended beyond the
existing 15-mile no-fly zone around Washington and in which general aviation aircraft are required to adhere to certain procedures
issued by the Administrator.

Deadlines.
Reports.

Classified
information.

SEC. 603. CREW TRAINING.

Section 44918 is amended to read as follows:
‘‘§ 44918. Crew training
‘‘(a) BASIC SECURITY TRAINING.—
‘‘(1) IN GENERAL.—Each air carrier providing scheduled
passenger air transportation shall carry out a training program
for flight and cabin crew members to prepare the crew members
for potential threat conditions.
‘‘(2) PROGRAM ELEMENTS.—An air carrier training program
under this subsection shall include, at a minimum, elements
that address each of the following:
‘‘(A) Recognizing suspicious activities and determining
the seriousness of any occurrence.
‘‘(B) Crew communication and coordination.
‘‘(C) The proper commands to give passengers and
attackers.
‘‘(D) Appropriate responses to defend oneself.

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117 STAT. 2564

‘‘(E) Use of protective devices assigned to crew members (to the extent such devices are required by the
Administrator of the Federal Aviation Administration or
the Under Secretary for Border and Transportation Security of the Department of Homeland Security).
‘‘(F) Psychology of terrorists to cope with hijacker
behavior and passenger responses.
‘‘(G) Situational training exercises regarding various
threat conditions.
‘‘(H) Flight deck procedures or aircraft maneuvers to
defend the aircraft and cabin crew responses to such procedures and maneuvers.
‘‘(I) The proper conduct of a cabin search, including
explosive device recognition.
‘‘(J) Any other subject matter considered appropriate
by the Under Secretary.
‘‘(3) APPROVAL.—An air carrier training program under
this subsection shall be subject to approval by the Under Secretary.
‘‘(4) MINIMUM STANDARDS.—Not later than one year after
the date of enactment of the Vision 100—Century of Aviation
Reauthorization Act, the Under Secretary may establish minimum standards for the training provided under this subsection
and for recurrent training.
‘‘(5) EXISTING PROGRAMS.—Notwithstanding paragraphs (3)
and (4), any training program of an air carrier to prepare
flight and cabin crew members for potential threat conditions
that was approved by the Administrator or the Under Secretary
before the date of enactment of the Vision 100—Century of
Aviation Reauthorization Act may continue in effect until disapproved or ordered modified by the Under Secretary.
‘‘(6) MONITORING.—The Under Secretary, in consultation
with the Administrator, shall monitor air carrier training programs under this subsection and periodically shall review an
air carrier’s training program to ensure that the program is
adequately preparing crew members for potential threat conditions. In determining when an air carrier’s training program
should be reviewed under this paragraph, the Under Secretary
shall consider complaints from crew members. The Under Secretary shall ensure that employees responsible for monitoring
the training programs have the necessary resources and knowledge.
‘‘(7) UPDATES.—The Under Secretary, in consultation with
the Administrator, shall order air carriers to modify training
programs under this subsection to reflect new or different security threats.
‘‘(b) ADVANCED SELF-DEFENSE TRAINING.—
‘‘(1) IN GENERAL.—Not later than one year after the date
of enactment of the Vision 100—Century of Aviation Reauthorization Act, the Under Secretary shall develop and provide
a voluntary training program for flight and cabin crew members
of air carriers providing scheduled passenger air transportation.
‘‘(2) PROGRAM ELEMENTS.—The training program under this
subsection shall include both classroom and effective handson training in the following elements of self-defense:
‘‘(A) Deterring a passenger who might present a threat.

Deadline.

Deadline.

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‘‘(B) Advanced control, striking, and restraint techniques.
‘‘(C) Training to defend oneself against edged or contact
weapons.
‘‘(D) Methods to subdue and restrain an attacker.
‘‘(E) Use of available items aboard the aircraft for
self-defense.
‘‘(F) Appropriate and effective responses to defend oneself, including the use of force against an attacker.
‘‘(G) Any other element of training that the Under
Secretary considers appropriate.
‘‘(3) PARTICIPATION NOT REQUIRED.—A crew member shall
not be required to participate in the training program under
this subsection.
‘‘(4) COMPENSATION.—Neither the Federal Government nor
an air carrier shall be required to compensate a crew member
for participating in the training program under this subsection.
‘‘(5) FEES.—A crew member shall not be required to pay
a fee for the training program under this subsection.
‘‘(6) CONSULTATION.—In developing the training program
under this subsection, the Under Secretary shall consult with
law enforcement personnel and security experts who have
expertise in self-defense training, terrorism experts, representatives of air carriers, the director of self-defense training in
the Federal Air Marshals Service, flight attendants, labor
organizations representing flight attendants, and educational
institutions offering law enforcement training programs.
‘‘(7) DESIGNATION OF TSA OFFICIAL.—The Under Secretary
shall designate an official in the Transportation Security
Administration to be responsible for implementing the training
program under this subsection. The official shall consult with
air carriers and labor organizations representing crew members
before implementing the program to ensure that it is appropriate for situations that may arise on board an aircraft during
a flight.
‘‘(c) LIMITATION.—Actions by crew members under this section
shall be subject to the provisions of section 44903(k).’’.
SEC. 604. STUDY OF EFFECTIVENESS OF TRANSPORTATION SECURITY
SYSTEM.

(a) IN GENERAL.—The Secretary of Homeland Security, in consultation with representatives of the aviation community, 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. The
Secretary shall submit the report in lieu of the annual report

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required under section 44938(a) of title 49, United States Code,
that is due March 31, 2004.
SEC. 605. AIRPORT SECURITY IMPROVEMENT PROJECTS.

(a) IN GENERAL.—Subchapter I of chapter 449 is amended
by adding at the end the following:

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‘‘§ 44923. Airport security improvement projects
‘‘(a) GRANT AUTHORITY.—Subject to the requirements of this
section, the Under Secretary for Border and Transportation Security
of the Department of Homeland Security may make grants to airport sponsors—
‘‘(1) for projects to replace baggage conveyer systems related
to aviation security;
‘‘(2) for projects to reconfigure terminal baggage areas as
needed to install explosive detection systems;
‘‘(3) for projects to enable the Under Secretary to deploy
explosive detection systems behind the ticket counter, in the
baggage sorting area, or in line with the baggage handling
system; and
‘‘(4) for other airport security capital improvement projects.
‘‘(b) APPLICATIONS.—A sponsor seeking a grant under this section shall submit to the Under Secretary an application in such
form and containing such information as the Under Secretary prescribes.
‘‘(c) APPROVAL.—The Under Secretary, after consultation with
the Secretary of Transportation, may approve an application of
a sponsor for a grant under this section only if the Under Secretary
determines that the project will improve security at an airport
or improve the efficiency of the airport without lessening security.
‘‘(d) LETTERS OF INTENT.—
‘‘(1) ISSUANCE.—The Under Secretary may issue a letter
of intent to a sponsor committing to obligate from future budget
authority an amount, not more than the Federal Government’s
share of the project’s cost, for an airport security improvement
project (including interest costs and costs of formulating the
project).
‘‘(2) SCHEDULE.—A letter of intent under this subsection
shall establish a schedule under which the Under Secretary
will reimburse the sponsor for the Government’s share of the
project’s costs, as amounts become available, if the sponsor,
after the Under Secretary issues the letter, carries out the
project without receiving amounts under this section.
‘‘(3) NOTICE TO UNDER SECRETARY.—A sponsor that has
been issued a letter of intent under this subsection shall notify
the Under Secretary of the sponsor’s intent to carry out a
project before the project begins.
‘‘(4) NOTICE TO CONGRESS.—The Under Secretary shall
transmit to the Committees on Appropriations and Transportation and Infrastructure of the House of Representatives and
the Committees on Appropriations and Commerce, Science and
Transportation of the Senate a written notification at least
3 days before the issuance of a letter of intent under this
section.
‘‘(5) LIMITATIONS.—A letter of intent issued under this subsection is not an obligation of the Government under section

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1501 of title 31, and the letter is not deemed to be an administrative commitment for financing. An obligation or administrative commitment may be made only as amounts are provided
in authorization and appropriations laws.
‘‘(6) STATUTORY CONSTRUCTION.—Nothing in this subsection
shall be construed to prohibit the obligation of amounts pursuant to a letter of intent under this subsection in the same
fiscal year as the letter of intent is issued.
‘‘(e) FEDERAL SHARE.—
‘‘(1) IN GENERAL.—The Government’s share of the cost of
a project under this section shall be 90 percent for a project
at a medium or large hub airport and 95 percent for a project
at any other airport.
‘‘(2) EXISTING LETTERS OF INTENT.—The Under Secretary
shall revise letters of intent issued before the date of enactment
of this section to reflect the cost share established in this
subsection with respect to grants made after September 30,
2003.
‘‘(f) SPONSOR DEFINED.—In this section, the term ‘sponsor’ has
the meaning given that term in section 47102.
‘‘(g) APPLICABILITY OF CERTAIN REQUIREMENTS.—The requirements that apply to grants and letters of intent issued under
chapter 471 (other than section 47102(3)) shall apply to grants
and letters of intent issued under this section.
‘‘(h) AVIATION SECURITY CAPITAL FUND.—
‘‘(1) IN GENERAL.—There is established within the Department of Homeland Security a fund to be known as the Aviation
Security Capital Fund. The first $250,000,000 derived from
fees received under section 44940(a)(1) in each of fiscal years
2004 through 2007 shall be available to be deposited in the
Fund. The Under Secretary shall impose the fee authorized
by section 44940(a)(1) so as to collect at least $250,000,000
in each of such fiscal years for deposit into the Fund. Amounts
in the Fund shall be available to the Under Secretary to make
grants under this section.
‘‘(2) ALLOCATIONS.—Of the amount made available under
paragraph (1) for a fiscal year, $125,000,000 shall be allocated
in such a manner that—
‘‘(A) 40 percent shall be made available for large hub
airports;
‘‘(B) 20 percent shall be made available for medium
hub airports;
‘‘(C) 15 percent shall be made available for small hub
airports and nonhub airports; and
‘‘(D) 25 percent shall be distributed by the Secretary
to any airport on the basis of aviation security risks.
‘‘(3) DISCRETIONARY GRANTS.—Of the amount made available under paragraph (1) for a fiscal year, $125,000,000 shall
be used to make discretionary grants, with priority given to
fulfilling intentions to obligate under letters of intent issued
under subsection (d).
‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—
‘‘(1) IN GENERAL.—In addition to amounts made available
under subsection (h), there is authorized to be appropriated
to carry out this section $250,000,000 for each of fiscal years
2004 through 2007. Such sums shall remain available until
expended.

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‘‘(2) ALLOCATIONS.—50 percent of amounts appropriated
pursuant to this subsection for a fiscal year shall be used
for making allocations under subsection (h)(2) and 50 percent
of such amounts shall be used for making discretionary grants
under subsection (h)(3).’’.
(b) CONFORMING AMENDMENTS.—
(1) USE OF PASSENGER FEE FUNDS.—Section 44940(a)(1)
is amended by inserting after subparagraph (G) the following:
‘‘(H) The costs of security-related capital improvements
at airports.
‘‘(I) The costs of training pilots and flight attendants
under sections 44918 and 44921.’’.
(2) LIMITATION ON COLLECTION.—Section 44940(d)(4) is
amended by striking ‘‘Act.’’ and inserting ‘‘Act or in section
44923.’’.
(3) CHAPTER ANALYSIS.—The analysis for subchapter I of
chapter 449 is amended by adding at the end the following:

‘‘44923. Airport security improvement projects.’’.
SEC. 606. CHARTER SECURITY.

49 USC 44903
note.
49 USC 44903
note.
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(a) IN GENERAL.—Section 44903 is amended by adding at the
end the following:
‘‘(l) AIR CHARTER PROGRAM.—
‘‘(1) IN GENERAL.—The Under Secretary for Border and
Transportation Security of the Department of Homeland Security shall implement an aviation security program for charter
air carriers (as defined in section 40102(a)) with a maximum
certificated takeoff weight of more than 12,500 pounds.
‘‘(2) EXEMPTION FOR ARMED FORCES CHARTERS.—
‘‘(A) IN GENERAL.—Paragraph (1) and the other requirements of this chapter do not apply to passengers and property carried by aircraft when employed to provide charter
transportation to members of the armed forces.
‘‘(B) SECURITY PROCEDURES.—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).
‘‘(C) ARMED FORCES DEFINED.—In this paragraph, the
term ‘armed forces’ has the meaning given that term by
section 101(a)(4) of title 10.’’.
(b) REPEAL.—Section 132 of the Aviation and Transportation Security Act (49 U.S.C. 44944 note) is repealed.
SEC. 607. CAPPS2.

(a) IN GENERAL.—The Under Secretary for Border and
Transportation Security of the Department of Homeland Security
shall not implement, on other than a test basis, the computer
assisted passenger prescreening system (commonly known as and
in this section referred to as ‘‘CAPPS2’’) until the Under Secretary
provides to Congress a certification that—
(1) a procedure is established enabling airline passengers,
who are delayed or prohibited from boarding a flight because
CAPPS2 determined that they might pose a security threat,

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to appeal such determination and correct information contained
in CAPPS2;
(2) the error rate of the Government and private data
bases that will be used to both establish identity and assign
a risk level to a passenger under CAPPS2 will not produce
a large number of false positives that will result in a significant
number of passengers being mistaken as a security threat;
(3) the Under Secretary has demonstrated the efficacy and
accuracy of all search tools in CAPPS2 and has demonstrated
that CAPPS2 can make an accurate predictive assessment of
those passengers who would constitute a security threat;
(4) the Secretary of Homeland Security has established
an internal oversight board to oversee and monitor the manner
in which CAPPS2 is being implemented;
(5) the Under Secretary has built in sufficient operational
safeguards to reduce the opportunities for abuse;
(6) substantial security measures are in place to protect
CAPPS2 from –unauthorized access by hackers or other
intruders;
(7) the Under Secretary has adopted policies establishing
effective oversight of the use and operation of the system;
and
(8) there are no specific privacy concerns with the technological architecture of the system.
(b) GAO REPORT.—Not later than 90 days after the date on
which certification is provided under subsection (a), the Comptroller
General shall submit a report to the Committees on Appropriations
of the House of Representatives and the Senate, the Committee
on Transportation and Infrastructure of the House of Representatives, and the Committee on Commerce, Science and Transportation
of the Senate that assesses the impact of CAPPS2 on the issues
listed in subsection (a) and on privacy and civil liberties. The
report shall include any recommendations for practices, procedures,
regulations, or legislation to eliminate or minimize adverse effect
of CAPPS2 on privacy, discrimination, and other civil liberties.

Deadline.

SEC. 608. REPORT ON PASSENGER PRESCREENING PROGRAM.

(a) IN GENERAL.—Within 90 days after the date of enactment
of this Act, the Secretary of Homeland Security, after consultation
with the Attorney General, shall submit a report in writing to
the Senate Committee on Commerce, Science, and Transportation
and the House of Representatives Committee on Transportation
and Infrastructure on the potential impact of the Transportation
Security Administration’s proposed Computer Assisted Passenger
Prescreening system, commonly known as CAPPS2, on the privacy
and civil liberties of United States citizens.
(b) SPECIFIC ISSUES TO BE ADDRESSED.—The report shall
address the following:
(1) Whether and for what period of time data gathered
on individual travelers will be retained, who will have access
to such data, and who will make decisions concerning access
to such data.
(2) How the Transportation Security Administration will
treat the scores assigned to individual travelers to measure
the likelihood they may pose a security threat, including how
long such scores will be retained and whether and under what

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PUBLIC LAW 108–176—DEC. 12, 2003
circumstances they may be shared with other governmental,
nongovernmental, or commercial entities.
(3) The role airlines and outside vendors or contractors
will have in implementing and operating the system, and to
what extent will they have access, or the means to obtain
access, to data, scores, or other information generated by the
system.
(4) The safeguards that will be implemented to ensure
that data, scores, or other information generated by the system
will be used only as officially intended.
(5) The procedures that will be implemented to mitigate
the effect of any errors, and what procedural recourse will
be available to passengers who believe the system has wrongly
barred them from taking flights.
(6) The oversight procedures that will be implemented to
ensure that, on an ongoing basis, privacy and civil liberties
issues will continue to be considered and addressed with high
priority as the system is installed, operated, and updated.

SEC. 609. ARMING CARGO PILOTS AGAINST TERRORISM.

49 USC 44921
note.

49 USC 44921
note.

(a) SENSE OF CONGRESS.—It is the sense of Congress that
members of a flight deck crew of a cargo aircraft should be armed
with a firearm or taser to defend the cargo aircraft against an
attack by terrorists that could result in the use of the aircraft
as a weapon of mass destruction or for other terrorist purposes.
(b) ARMING CARGO PILOTS AGAINST TERRORISM.—Section 44921
is amended—
(1) in subsection (a) by striking ‘‘passenger’’ each place
that it appears;
(2) in subsection (k)(2) by striking ‘‘or,’’ and all that follows
before the period at the end and inserting ‘‘or any other flight
deck crew member’’; and
(3) by adding at the end of subsection (k) the following:
‘‘(3) ALL-CARGO AIR TRANSPORTATION.—In this section, the
term ‘air transportation’ includes all-cargo air transportation.’’.
(c) TIME FOR IMPLEMENTATION.—In carrying out the amendments made by subsection (d), the Under Secretary for Border
and Transportation Security of the Department of Homeland Security shall ensure that passenger and cargo pilots are treated equitably in receiving access to training as Federal flight deck officers.
(d) EFFECT ON OTHER LAWS.—The requirements of subsection
(e) shall have no effect on the deadlines for implementation contained in section 44921 of title 49, United States Code, as in
effect on the day before the date of enactment of this Act.
SEC. 610. REMOVAL OF CAP ON TSA STAFFING LEVEL.

The matter appearing under the heading ‘‘AVIATION SECURITY’’
in the appropriations for the Transportation Security Administration in the Transportation and Related Agencies Appropriation Act,
2003 (Public Law 108–7; 117 Stat. 386) is amended by striking
the fifth proviso.
SEC. 611. FOREIGN REPAIR STATIONS.
Deadline.

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(a) OVERSIGHT PLAN.—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 a plan containing an

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implementation schedule to strengthen oversight of domestic and
foreign repair stations and ensure that foreign repair stations that
are certified by the Administrator under part 145 of title 14, Code
of Federal Regulations, are subject to an equivalent level of safety,
oversight, and quality control as those located in the United States.
(b) REPAIR STATION SECURITY.—
(1) IN GENERAL.—Subchapter I of chapter 449 is further
amended by adding at the end the following:
‘‘§ 44924. Repair station security
‘‘(a) SECURITY REVIEW AND AUDIT.—To ensure the security of
maintenance and repair work conducted on air carrier aircraft
and components at foreign repair stations, the Under Secretary
for Border and Transportation Security of the Department of Homeland Security, in consultation with the Administrator of the Federal
Aviation Administration, shall complete a security review and audit
of foreign repair stations that are certified by the Administrator
under part 145 of title 14, Code of Federal Regulations, and that
work on air carrier aircraft and components. The review shall
be completed not later than 18 months after the date on which
the Under Secretary issues regulations under subsection (f).
‘‘(b) ADDRESSING SECURITY CONCERNS.—The Under Secretary
shall require a foreign repair station to address the security issues
and vulnerabilities identified in a security audit conducted under
subsection (a) within 90 days of providing notice to the repair
station of the security issues and vulnerabilities so identified and
shall notify the Administrator that a deficiency was identified in
the security audit.
‘‘(c) SUSPENSIONS AND REVOCATIONS OF CERTIFICATES.—
‘‘(1) FAILURE TO CARRY OUT EFFECTIVE SECURITY MEASURES.—If, after the 90th day on which a notice is provided
to a foreign repair station under subsection (b), the Under
Secretary determines that the foreign repair station does not
maintain and carry out effective security measures, the Under
Secretary shall notify the Administrator of the determination.
Upon receipt of the determination, the Administrator shall
suspend the certification of the repair station until such time
as the Under Secretary determines that the repair station
maintains and carries out effective security measures and
transmits the determination to the Administrator.
‘‘(2) IMMEDIATE SECURITY RISK.—If the Under Secretary
determines that a foreign repair station poses an immediate
security risk, the Under Secretary shall notify the Administrator of the determination. Upon receipt of the determination,
the Administrator shall revoke the certification of the repair
station.
‘‘(3) PROCEDURES FOR APPEALS.—The Under Secretary, in
consultation with the Administrator, shall establish procedures
for appealing a revocation of a certificate under this subsection.
‘‘(d) FAILURE TO MEET AUDIT DEADLINE.—If the security audits
required by subsection (a) are not completed on or before the date
that is 18 months after the date on which the Under Secretary
issues regulations under subsection (f), the Administrator shall
be barred from certifying any foreign repair station until such
audits are completed for existing stations.
‘‘(e) PRIORITY FOR AUDITS.—In conducting the audits described
in subsection (a), the Under Secretary and the Administrator shall

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Notification.

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give priority to foreign repair stations located in countries identified
by the Government as posing the most significant security risks.
‘‘(f) REGULATIONS.—Not later than 240 days after the date
of enactment of this section, the Under Secretary, in consultation
with the Administrator, shall issue final regulations to ensure the
security of foreign and domestic aircraft repair stations.
‘‘(g) REPORT TO CONGRESS.—If the Under Secretary does not
issue final regulations before the deadline specified in subsection
(f), the Under Secretary 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 containing an explanation as to why the deadline was not met and a schedule for issuing the final regulations.’’.
(2) CONFORMING AMENDMENT.—The analysis for subchapter
I of chapter 449 is further amended by adding at the end
the following:
‘‘44924. Repair station security.’’.
SEC. 612. FLIGHT TRAINING.

(a) IN GENERAL.—Section 44939 is amended to read as follows:

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‘‘§ 44939. Training to operate certain aircraft
‘‘(a) WAITING PERIOD.—A person operating as a flight instructor,
pilot school, or aviation training center or subject to regulation
under this part may provide training in the operation of any aircraft
having a maximum certificated takeoff weight of more than 12,500
pounds to an alien (as defined in section 101(a)(3) of the Immigration and Nationality Act (8 U.S.C. 1101(a)(3))) or to any other
individual specified by the Secretary of Homeland Security only
if—
‘‘(1) that person has first notified the Secretary that the
alien or individual has requested such training and submitted
to the Secretary, in such form as the Secretary may prescribe,
the following information about the alien or individual:
‘‘(A) full name, including any aliases used by the
applicant or variations in spelling of the applicant’s name;
‘‘(B) passport and visa information;
‘‘(C) country of citizenship;
‘‘(D) date of birth;
‘‘(E) dates of training; and
‘‘(F) fingerprints collected by, or under the supervision
of, a Federal, State, or local law enforcement agency or
by another entity approved by the Federal Bureau of Investigation or the Secretary of Homeland Security, including
fingerprints taken by United States Government personnel
at a United States embassy or consulate; and
‘‘(2) the Secretary has not directed, within 30 days after
being notified under paragraph (1), that person not to provide
the requested training because the Secretary has determined
that the individual presents a risk to aviation or national
security.
‘‘(b) INTERRUPTION OF TRAINING.—If the Secretary of Homeland
Security, more than 30 days after receiving notification under subsection (a) from a person providing training described in subsection
(a), determines that the individual presents a risk to aviation or
national security, the Secretary shall immediately notify the person

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providing the training of the determination and that person shall
immediately terminate the training.
‘‘(c) NOTIFICATION.—A person operating as a flight instructor,
pilot school, or aviation training center or subject to regulation
under this part may provide training in the operation of any aircraft
having a maximum certificated takeoff weight of 12,500 pounds
or less to an alien (as defined in section 101(a)(3) of the Immigration
and Nationality Act (8 U.S.C. 1101(a)(3))) or to any other individual
specified by the Secretary of Homeland Security only if that person
has notified the Secretary that the individual has requested such
training and furnished the Secretary with that individual’s identification in such form as the Secretary may require.
‘‘(d) EXPEDITED PROCESSING.—Not later than 60 days after the
date of enactment of this section, the Secretary shall establish
a process to ensure that the waiting period under subsection (a)
shall not exceed 5 days for an alien (as defined in section 101(a)(3)
of the Immigration and Nationality Act (8 U.S.C. 1101(a)(3))) who—
‘‘(1) holds an airman’s certification of a foreign country
that is recognized by an agency of the United States, including
a military agency, that permits an individual to operate a
multi-engine aircraft that has a certificated takeoff weight of
more than 12,500 pounds;
‘‘(2) is employed by a foreign air carrier that is certified
under part 129 of title 14, Code of Federal Regulations, and
that has a security program approved under section 1546 of
title 49, Code of Federal Regulations;
‘‘(3) is an individual that has unescorted access to a secured
area of an airport designated under section 44936(a)(1)(A)(ii);
or
‘‘(4) is an individual that is part of a class of individuals
that the Secretary has determined that providing aviation
training to presents minimal risk to aviation or national security because of the aviation training already possessed by such
class of individuals.
‘‘(e) TRAINING.—In subsection (a), the term ‘training’ means
training received from an instructor in an aircraft or aircraft simulator and does not include recurrent training, ground training,
or demonstration flights for marketing purposes.
‘‘(f) NONAPPLICABILITY TO CERTAIN FOREIGN MILITARY PILOTS.—
The procedures and processes required by subsections (a) through
(d) shall not apply to a foreign military pilot endorsed by the
Department of Defense for flight training in the United States
and seeking training described in subsection (e) in the United
States.
‘‘(g) FEE.—
‘‘(1) IN GENERAL.—The Secretary of Homeland Security may
assess a fee for an investigation under this section, which
may not exceed $100 per individual (exclusive of the cost of
transmitting fingerprints collected at overseas facilities) during
fiscal years 2003 and 2004. For fiscal year 2005 and thereafter,
the Secretary may adjust the maximum amount of the fee
to reflect the costs of such an investigation.
‘‘(2) OFFSET.—Notwithstanding section 3302 of title 31, any
fee collected under this section—
‘‘(A) shall be credited to the account in the Treasury
from which the expenses were incurred and shall be available to the Secretary for those expenses; and

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117 STAT. 2574

49 USC 44939
note.
Deadline.
Regulations.

49 USC 44939
note.
Deadline.
49 USC 44939
note.

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PUBLIC LAW 108–176—DEC. 12, 2003

‘‘(B) shall remain available until expended.
‘‘(h) INTERAGENCY COOPERATION.—The Attorney General, the
Director of Central Intelligence, and the Administrator of the Federal Aviation Administration shall cooperate with the Secretary
in implementing this section.
‘‘(i) SECURITY AWARENESS TRAINING FOR EMPLOYEES.—The Secretary shall require flight schools to conduct a security awareness
program for flight school employees to increase their awareness
of suspicious circumstances and activities of individuals enrolling
in or attending flight school.’’.
(b) PROCEDURES.—
(1) IN GENERAL.—Not later than 60 days after the date
of enactment of this Act, the Secretary of Homeland Security
shall promulgate an interim final rule to implement section
44939 of title 49, United States Code, as amended by subsection
(a).
(2) USE OF OVERSEAS FACILITIES.—In order to implement
section 44939 of title 49, United States Code, as amended
by subsection (a), United States Embassies and Consulates
that possess appropriate fingerprint collection equipment and
personnel certified to capture fingerprints shall provide fingerprint services to aliens covered by that section if the Secretary
requires fingerprints in the administration of that section, and
shall transmit the fingerprints to the Secretary or other agency
designated by the Secretary. The Attorney General and the
Secretary of State shall cooperate with the Secretary of Homeland Security in carrying out this paragraph.
(3) USE OF UNITED STATES FACILITIES.—If the Secretary
of Homeland Security requires fingerprinting in the administration of section 44939 of title 49, United States Code, the Secretary may designate locations within the United States that
will provide fingerprinting services to individuals covered by
that section.
(c) EFFECTIVE DATE.—The amendment made by subsection (a)
takes effect on the effective date of the interim final rule required
by subsection (b)(1).
(d) REPORT.—Not later than 1 year after the date of enactment
of this Act, the Secretary of Homeland Security shall submit to
the Senate Committee on Commerce, Science, and Transportation
and the House of Representatives Committee on Transportation
and Infrastructure a report on the effectiveness of the activities
carried out under section 44939 of title 49, United States Code,
in reducing risks to aviation security and national security.
SEC. 613. DEPLOYMENT OF SCREENERS AT KENAI, HOMER, AND
VALDEZ, ALASKA.

Not later than 45 days after the date of enactment of this
Act, the Administrator of the Transportation Security Administration shall deploy Federal screeners at Kenai, Homer, and Valdez,
Alaska.

TITLE VII—AVIATION RESEARCH
SEC. 701. AUTHORIZATION OF APPROPRIATIONS.

Section 48102(a) is amended—

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(1) by striking ‘‘to carry out sections 44504’’ and inserting
‘‘for conducting civil aviation research and development under
sections 44504’’;
(2) by striking ‘‘and’’ at the end of paragraph (7);
(3) by striking the period at the end of paragraph (8)
and inserting a semicolon; and
(4) by adding at the end the following new paragraphs:
‘‘(9) for fiscal year 2004, $346,317,000, including—
‘‘(A) $65,000,000 for Improving Aviation Safety;
‘‘(B) $24,000,000 for Weather Safety Research;
‘‘(C) $27,500,000 for Human Factors and Aeromedical
Research;
‘‘(D) $30,000,000 for Environmental Research and
Development, of which $20,000,000 shall be for research
activities related to reducing community exposure to
civilian aircraft noise or emissions;
‘‘(E) $7,000,000 for Research Mission Support;
‘‘(F) $10,000,000 for the Airport Cooperative Research
Program;
‘‘(G) $1,500,000 for carrying out subsection (h) of this
section;
‘‘(H) $42,800,000 for Advanced Technology Development and Prototyping;
‘‘(I) $30,300,000 for Safe Flight 21;
‘‘(J) $90,800,000 for the Center for Advanced Aviation
System Development;
‘‘(K) $9,667,000 for Airports Technology-Safety; and
‘‘(L) $7,750,000 for Airports Technology-Efficiency;
‘‘(10) for fiscal year 2005, $356,192,000, including—
‘‘(A) $65,705,000 for Improving Aviation Safety;
‘‘(B) $24,260,000 for Weather Safety Research;
‘‘(C) $27,800,000 for Human Factors and Aeromedical
Research;
‘‘(D) $30,109,000 for Environmental Research and
Development, of which $20,000,000 shall be for research
activities related to reducing community exposure to
civilian aircraft noise or emissions;
‘‘(E) $7,076,000 for Research Mission Support;
‘‘(F) $10,000,000 for the Airport Cooperative Research
Program;
‘‘(G) $1,650,000 for carrying out subsection (h) of this
section;
‘‘(H) $43,300,000 for Advanced Technology Development and Prototyping;
‘‘(I) $31,100,000 for Safe Flight 21;
‘‘(J) $95,400,000 for the Center for Advanced Aviation
System Development;
‘‘(K) $2,200,000 for Free Flight Phase 2;
‘‘(L) $9,764,000 for Airports Technology-Safety; and
‘‘(M) $7,828,000 for Airports Technology-Efficiency;
‘‘(11) for fiscal year 2006, $352,157,000, including—
‘‘(A) $66,447,000 for Improving Aviation Safety;
‘‘(B) $24,534,000 for Weather Safety Research;
‘‘(C) $28,114,000 for Human Factors and Aeromedical
Research;
‘‘(D) $30,223,000 for Environmental Research and
Development, of which $20,000,000 shall be for research

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PUBLIC LAW 108–176—DEC. 12, 2003
activities related to reducing community exposure to
civilian aircraft noise or emissions;
‘‘(E) $7,156,000 for Research Mission Support;
‘‘(F) $10,000,000 for the Airport Cooperation Research
Program;
‘‘(G) $1,815,000 for carrying out subsection (h) of this
section;
‘‘(H) $42,200,000 for Advanced Technology Development and Prototyping;
‘‘(I) $23,900,000 for Safe Flight 21;
‘‘(J) $100,000,000 for the Center for Advanced Aviation
System Development;
‘‘(K) $9,862,000 for Airports Technology-Safety; and
‘‘(L) $7,906,000 for Airports Technology-Efficiency; and
‘‘(12) for fiscal year 2007, $356,261,000, including—
‘‘(A) $67,244,000 for Improving Aviation Safety;
‘‘(B) $24,828,000 for Weather Safety Research;
‘‘(C) $28,451,000 for Human Factors and Aeromedical
Research;
‘‘(D) $30,586,000 for Environmental Research and
Development, of which $20,000,000 shall be for research
activities related to reducing community exposure to
civilian aircraft noise or emissions;
‘‘(E) $7,242,000 for Research Mission Support;
‘‘(F) $10,000,000 for the Airport Cooperation Research
Program;
‘‘(G) $1,837,000 for carrying out subsection (h) of this
section;
‘‘(H) $42,706,000 for Advanced Technology Development and Prototyping;
‘‘(I) $24,187,000 for Safe Flight 21;
‘‘(J) $101,200,000 for the Center for Advanced Aviation
System Development;
‘‘(K) $9,980,000 for Airports Technology-Safety; and
‘‘(L) $8,000,000 for Airports Technology-Efficiency.’’.

49 USC 106 note.

Contracts.

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SEC. 702. FEDERAL AVIATION ADMINISTRATION SCIENCE AND TECHNOLOGY SCHOLARSHIP PROGRAM.

(a)(1) The Administrator of the Federal Aviation Administration
shall establish a Federal Aviation Administration Science and Technology Scholarship Program to award scholarships to individuals
that is designed to recruit and prepare students for careers in
the Federal Aviation Administration.
(2) Individuals shall be selected to receive scholarships under
this section through a competitive process primarily on the basis
of academic merit, with consideration given to financial need and
the goal of promoting the participation of individuals identified
in section 33 or 34 of the Science and Engineering Equal Opportunities Act.
(3) To carry out the Program the Administrator shall enter
into contractual agreements with individuals selected under paragraph (2) under which the individuals agree to serve as full-time
employees of the Federal Aviation Administration, for the period
described in subsection (f)(1), in positions needed by the Federal
Aviation Administration and for which the individuals are qualified,
in exchange for receiving a scholarship.

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(b) In order to be eligible to participate in the Program, an
individual must—
(1) be enrolled or accepted for enrollment as a full-time
student at an institution of higher education, as a junior or
senior undergraduate or graduate student, in an academic field
or discipline described in the list made available under subsection (d);
(2) be a United States citizen or permanent resident; and
(3) at the time of the initial scholarship award, not be
an employee (as defined in section 2105 of title 5, United
States Code).
(c) An individual seeking a scholarship under this section shall
submit an application to the Administrator at such time, in such
manner, and containing such information, agreements, or assurances as the Administrator may require.
(d) The Administrator shall make publicly available a list of
academic programs and fields of study for which scholarships under
the Program may be utilized and shall update the list as necessary.
(e)(1) The Administrator may provide a scholarship under the
Program for an academic year if the individual applying for the
scholarship has submitted to the Administrator, as part of the
application required under subsection (c), a proposed academic program leading to a degree in a program or field of study on the
list made available under subsection (d).
(2) An individual may not receive a scholarship under this
section for more than 4 academic years, unless the Administrator
grants a waiver.
(3) The dollar amount of a scholarship under this section for
an academic year shall be determined under regulations issued
by the Administrator, but shall in no case exceed the cost of attendance.
(4) A scholarship provided under this section may be expended
for tuition, fees, and other authorized expenses as established by
the Administrator by regulation.
(5) The Administrator may enter into a contractual agreement
with an institution of higher education under which the amounts
provided for a scholarship under this section for tuition, fees, and
other authorized expenses are paid directly to the institution with
respect to which the scholarship is provided.
(f)(1) The period of service for which an individual shall be
obligated to serve as an employee of the Federal Aviation Administration is, except as provided in subsection (h)(2), 24 months for
each academic year for which a scholarship under this section
is provided.
(2)(A) Except as provided in subparagraph (B), obligated service
under paragraph (1) shall begin not later than 60 days after the
individual obtains the educational degree for which the scholarship
was provided.
(B) The Administrator may defer the obligation of an individual
to provide a period of service under paragraph (1) if the Administrator determines that such a deferral is appropriate. The Administrator shall prescribe the terms and conditions under which a
service obligation may be deferred through regulation.
(g)(1) Scholarship recipients who fail to maintain a high level
of academic standing, as defined by the Administrator by regulation,
who are dismissed from their educational institutions for disciplinary reasons, or who voluntarily terminate academic training before

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Public
information.
Records.

Regulations.

Regulations.

Deadline.

Regulations.

Regulations.

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117 STAT. 2578

Regulations.

Appropriation
authorization.

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graduation from the educational program for which the scholarship
was awarded, shall be in breach of their contractual agreement
and, in lieu of any service obligation arising under such agreement,
shall be liable to the United States for repayment within 1 year
after the date of default of all scholarship funds paid to them
and to the institution of higher education on their behalf under
the agreement, except as provided in subsection (h)(2). The repayment period may be extended by the Administrator when determined to be necessary, as established by regulation.
(2) Scholarship recipients who, for any reason, fail to begin
or complete their service obligation after completion of academic
training, or fail to comply with the terms and conditions of
deferment established by the Administrator pursuant to subsection
(f)(2)(B), shall be in breach of their contractual agreement. When
recipients breach their agreements for the reasons stated in the
preceding sentence, the recipient shall be liable to the United States
for an amount equal to—
(A) the total amount of scholarships received by such individual under this section; plus
(B) the interest on the amounts of such awards which
would be payable if at the time the awards were received
they were loans bearing interest at the maximum legal prevailing rate, as determined by the Treasurer of the United
States,
multiplied by 3.
(h)(1) Any obligation of an individual incurred under the Program (or a contractual agreement thereunder) for service or payment shall be canceled upon the death of the individual.
(2) The Administrator shall by regulation provide for the partial
or total waiver or suspension of any obligation of service or payment
incurred by an individual under the Program (or a contractual
agreement thereunder) whenever compliance by the individual is
impossible or would involve extreme hardship to the individual,
or if enforcement of such obligation with respect to the individual
would be contrary to the best interests of the Government.
(i) For purposes of this section—
(1) the term ‘‘cost of attendance’’ has the meaning given
that term in section 472 of the Higher Education Act of 1965;
(2) the term ‘‘institution of higher education’’ has the
meaning given that term in section 101(a) of the Higher Education Act of 1965; and
(3) the term ‘‘Program’’ means the Federal Aviation
Administration Science and Technology Scholarship Program
established under this section.
(j)(1) There is authorized to be appropriated to the Federal
Aviation Administration for the Program $10,000,000 for each fiscal
year.
(2) Amounts appropriated under this section shall remain available for 2 fiscal years.
(k) The Administrator may provide temporary internships to
full-time 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.

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117 STAT. 2579

SEC. 703. NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
SCIENCE AND TECHNOLOGY SCHOLARSHIP PROGRAM.

(a)(1) The Administrator of the National Aeronautics and Space
Administration shall establish a National Aeronautics and Space
Administration Science and Technology Scholarship Program to
award scholarships to individuals that is designed to recruit and
prepare students for careers in the National Aeronautics and Space
Administration.
(2) Individuals shall be selected to receive scholarships under
this section through a competitive process primarily on the basis
of academic merit, with consideration given to financial need and
the goal of promoting the participation of individuals identified
in section 33 or 34 of the Science and Engineering Equal Opportunities Act.
(3) To carry out the Program the Administrator shall enter
into contractual agreements with individuals selected under paragraph (2) under which the individuals agree to serve as full-time
employees of the National Aeronautics and Space Administration,
for the period described in subsection (f)(1), in positions needed
by the National Aeronautics and Space Administration and for
which the individuals are qualified, in exchange for receiving a
scholarship.
(b) In order to be eligible to participate in the Program, an
individual must—
(1) be enrolled or accepted for enrollment as a full-time
student at an institution of higher education, as a junior or
senior undergraduate or graduate student, in an academic field
or discipline described in the list made available under subsection (d);
(2) be a United States citizen or permanent resident; and
(3) at the time of the initial scholarship award, not be
an employee (as defined in section 2105 of title 5, United
States Code).
(c) An individual seeking a scholarship under this section shall
submit an application to the Administrator at such time, in such
manner, and containing such information, agreements, or assurances as the Administrator may require.
(d) The Administrator shall make publicly available a list of
academic programs and fields of study for which scholarships under
the Program may be utilized and shall update the list as necessary.
(e)(1) The Administrator may provide a scholarship under the
Program for an academic year if the individual applying for the
scholarship has submitted to the Administrator, as part of the
application required under subsection (c), a proposed academic program leading to a degree in a program or field of study on the
list made available under subsection (d).
(2) An individual may not receive a scholarship under this
section for more than 4 academic years, unless the Administrator
grants a waiver.
(3) The dollar amount of a scholarship under this section for
an academic year shall be determined under regulations issued
by the Administrator, but shall in no case exceed the cost of attendance.
(4) A scholarship provided under this section may be expended
for tuition, fees, and other authorized expenses as established by
the Administrator by regulation.

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42 USC 2473e.

Contracts.

Public
information.
Records.

Regulations.

Regulations.

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117 STAT. 2580

Deadline.

Regulations.

Regulations.

Regulations.

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(5) The Administrator may enter into a contractual agreement
with an institution of higher education under which the amounts
provided for a scholarship under this section for tuition, fees, and
other authorized expenses are paid directly to the institution with
respect to which the scholarship is provided.
(f)(1) The period of service for which an individual shall be
obligated to serve as an employee of the National Aeronautics
and Space Administration is, except as provided in subsection (h)(2),
24 months for each academic year for which a scholarship under
this section is provided.
(2)(A) Except as provided in subparagraph (B), obligated service
under paragraph (1) shall begin not later than 60 days after the
individual obtains the educational degree for which the scholarship
was provided.
(B) The Administrator may defer the obligation of an individual
to provide a period of service under paragraph (1) if the Administrator determines that such a deferral is appropriate. The Administrator shall prescribe the terms and conditions under which a
service obligation may be deferred through regulation.
(g)(1) Scholarship recipients who fail to maintain a high level
of academic standing, as defined by the Administrator by regulation,
who are dismissed from their educational institutions for disciplinary reasons, or who voluntarily terminate academic training before
graduation from the educational program for which the scholarship
was awarded, shall be in breach of their contractual agreement
and, in lieu of any service obligation arising under such agreement,
shall be liable to the United States for repayment within 1 year
after the date of default of all scholarship funds paid to them
and to the institution of higher education on their behalf under
the agreement, except as provided in subsection (h)(2). The repayment period may be extended by the Administrator when determined to be necessary, as established by regulation.
(2) Scholarship recipients who, for any reason, fail to begin
or complete their service obligation after completion of academic
training, or fail to comply with the terms and conditions of
deferment established by the Administrator pursuant to subsection
(f)(2)(B), shall be in breach of their contractual agreement. When
recipients breach their agreements for the reasons stated in the
preceding sentence, the recipient shall be liable to the United States
for an amount equal to—
(A) the total amount of scholarships received by such individual under this section; plus
(B) the interest on the amounts of such awards which
would be payable if at the time the awards were received
they were loans bearing interest at the maximum legal prevailing rate, as determined by the Treasurer of the United
States,
multiplied by 3.
(h)(1) Any obligation of an individual incurred under the Program (or a contractual agreement thereunder) for service or payment shall be canceled upon the death of the individual.
(2) The Administrator shall by regulation provide for the partial
or total waiver or suspension of any obligation of service or payment
incurred by an individual under the Program (or a contractual
agreement thereunder) whenever compliance by the individual is
impossible or would involve extreme hardship to the individual,

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or if enforcement of such obligation with respect to the individual
would be contrary to the best interests of the Government.
(i) For purposes of this section—
(1) the term ‘‘cost of attendance’’ has the meaning given
that term in section 472 of the Higher Education Act of 1965;
(2) the term ‘‘institution of higher education’’ has the
meaning given that term in section 101(a) of the Higher Education Act of 1965; and
(3) the term ‘‘Program’’ means the National Aeronautics
and Space Administration Science and Technology Scholarship
Program established under this section.
(j)(1) There is authorized to be appropriated to the National
Aeronautics and Space Administration for the Program $10,000,000
for each fiscal year.
(2) Amounts appropriated under this section shall remain available for 2 fiscal years.
(k) The Administrator may provide temporary internships to
full-time 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.
SEC. 704. RESEARCH PROGRAM TO IMPROVE AIRFIELD PAVEMENTS.

(a) CONTINUATION OF PROGRAM.—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 airfield pavements to aid in the development of safer, more
cost effective, and more durable airfield pavements.
(b) USE OF GRANTS OR COOPERATIVE AGREEMENTS.—The
Administrator may use grants or cooperative agreements in carrying
out this section.
(c) STATUTORY CONSTRUCTION.—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. 705. 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 and Committee on
Science.

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Appropriation
authorization.

49 USC 44505
note.

49 USC 44505
note.

Deadline.

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117 STAT. 2582
49 USC 44702
note.

PUBLIC LAW 108–176—DEC. 12, 2003

SEC. 706. 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. 707. RESEARCH ON AVIATION TRAINING.

Section 48102(h)(1) of title 49, United States Code, is
amended—
(1) by striking ‘‘or’’ at the end of subparagraph (B);
(2) by striking the period at the end of subparagraph (C)
and inserting ‘‘; or’’; and
(3) by adding at the end the following new subparagraph:
‘‘(D) research on the impact of new technologies and
procedures, particularly those related to aircraft flight deck
and air traffic management functions, on training requirements for pilots and air traffic controllers.’’.
49 USC 44504
note.

SEC. 708. FAA CENTER FOR EXCELLENCE FOR APPLIED RESEARCH
AND TRAINING IN THE USE OF ADVANCED MATERIALS
IN TRANSPORT AIRCRAFT.

Establishment.

(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. 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 is authorized
to be appropriated to the Administrator $500,000 for fiscal year
2004 to carry out this section.

49 USC 40101
note.

SEC. 709. AIR TRANSPORTATION SYSTEM JOINT PLANNING AND
DEVELOPMENT OFFICE.

(a) ESTABLISHMENT.—(1) The Secretary of Transportation shall
establish in the Federal Aviation Administration a joint planning
and development office to manage work related to the Next Generation Air Transportation System. The office shall be known as the
Next Generation Air Transportation System Joint Planning and
Development Office (in this section referred to as the ‘‘Office’’).
(2) The responsibilities of the Office shall include—
(A) creating and carrying out an integrated plan for a
Next Generation Air Transportation System pursuant to subsection (b);
(B) overseeing research and development on that system;
(C) creating a transition plan for the implementation of
that system;
(D) coordinating aviation and aeronautics research programs to achieve the goal of more effective and directed programs that will result in applicable research;

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(E) coordinating goals and priorities and coordinating
research activities within the Federal Government with United
States aviation and aeronautical firms;
(F) coordinating 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;
(G) facilitating the transfer of technology from research
programs such as the National Aeronautics and Space Administration program and the Department of Defense Advanced
Research Projects Agency program to Federal agencies with
operational responsibilities and to the private sector; and
(H) reviewing 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.
(3) The Office shall operate in conjunction with relevant programs in the Department of Defense, the National Aeronautics
and Space Administration, the Department of Commerce and the
Department of Homeland Security. The Secretary of Transportation
may request assistance from staff from those Departments and
other Federal agencies.
(4) In developing and carrying out its plans, the Office shall
consult with the public and ensure the participation of experts
from the private sector including representatives of commercial
aviation, general aviation, aviation labor groups, aviation research
and development entities, aircraft and air traffic control suppliers,
and the space industry.
(b) INTEGRATED PLAN.—The integrated plan shall be designed
to ensure that the Next Generation Air Transportation System
meets air transportation safety, security, mobility, efficiency, and
capacity needs beyond those currently included in the Federal Aviation Administration’s operational evolution plan and accomplishes
the goals under subsection (c). The integrated plan shall include—
(1) a national vision statement for an air transportation
system capable of meeting potential air traffic demand by 2025;
(2) a description of the demand and the performance
characteristics that will be required of the Nation’s future air
transportation system, and an explanation of how those
characteristics were derived, including the national goals, objectives, and policies the system is designed to further, and the
underlying socioeconomic determinants, and associated models
and analyses;
(3) a multiagency research and development roadmap for
creating the Next Generation Air Transportation System with
the characteristics outlined under clause (ii), including—
(A) the most significant technical obstacles and the
research and development activities necessary to overcome
them, including for each project, the role of each Federal
agency, corporations, and universities;
(B) the annual anticipated cost of carrying out the
research and development activities; and
(C) the technical milestones that will be used to
evaluate the activities; and
(4) a description of the operational concepts to meet the
system performance requirements for all system users and a

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117 STAT. 2584

timeline and anticipated expenditures needed to develop and
deploy the system to meet the vision for 2025.
(c) GOALS.—The Next Generation Air Transportation System
shall—
(1) improve the level of safety, security, efficiency, quality,
and affordability of the National Airspace System and aviation
services;
(2) take advantage of data from emerging ground-based
and space-based communications, navigation, and surveillance
technologies;
(3) integrate data streams from multiple agencies and
sources to enable situational awareness and seamless global
operations for all appropriate users of the system, including
users responsible for civil aviation, homeland security, and
national security;
(4) leverage investments in civil aviation, homeland security, and national security and build upon current air traffic
management and infrastructure initiatives to meet system
performance requirements for all system users;
(5) be scalable to accommodate and encourage substantial
growth in domestic and international transportation and anticipate and accommodate continuing technology upgrades and
advances;
(6) accommodate a wide range of aircraft operations,
including airlines, air taxis, helicopters, general aviation, and
unmanned aerial vehicles; and
(7) take into consideration, to the greatest extent practicable, design of airport approach and departure flight paths
to reduce exposure of noise and emissions pollution on affected
residents.
(d) REPORTS.—The Administrator of the Federal Aviation
Administration shall transmit to the Committee on Commerce,
Science, and Transportation in the Senate and the Committee on
Transportation and Infrastructure and the Committee on Science
in the House of Representatives—
(1) not later than 1 year after the date of enactment of
this Act, the integrated plan required in subsection (b); and
(2) annually at the time of the President’s budget request,
a report describing the progress in carrying out the plan
required under subsection (b) and any changes to that plan.
(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated to the Office $50,000,000 for each of the fiscal
years 2004 through 2010.

Deadlines.

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49 USC 40101
note.

SEC. 710. NEXT GENERATION AIR TRANSPORTATION SENIOR POLICY
COMMITTEE.

Establishment.

(a) IN GENERAL.—The Secretary of Transportation shall establish a senior policy committee to work with the Next Generation
Air Transportation System Joint Planning and Development Office.
The senior policy committee shall be chaired by the Secretary.
(b) MEMBERSHIP.—In addition to the Secretary, the senior policy
committee shall be composed of—
(1) the Administrator of the Federal Aviation Administration (or the Administrator’s designee);
(2) the Administrator of the National Aeronautics and
Space Administration (or the Administrator’s designee);
(3) the Secretary of Defense (or the Secretary’s designee);

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(4) the Secretary of Homeland Security (or the Secretary’s
designee);
(5) the Secretary of Commerce (or the Secretary’s designee);
(6) the Director of the Office of Science and Technology
Policy (or the Director’s designee); and
(7) designees from other Federal agencies determined by
the Secretary of Transportation to have an important interest
in, or responsibility for, other aspects of the system.
(c) FUNCTION.—The senior policy committee shall—
(1) advise the Secretary of Transportation regarding the
national goals and strategic objectives for the transformation
of the Nation’s air transportation system to meet its future
needs;
(2) provide policy guidance for the integrated plan for the
air transportation system to be developed by the Next Generation Air Transportation System Joint Planning and Development Office;
(3) provide ongoing policy review for the transformation
of the air transportation system;
(4) identify resource needs and make recommendations to
their respective agencies for necessary funding for planning,
research, and development activities; and
(5) make legislative recommendations, as appropriate, for
the future air transportation system.
(d) CONSULTATION.—In carrying out its functions under this
section, the senior policy committee shall consult with, and ensure
participation by, the private sector (including representatives of
general aviation, commercial aviation, aviation labor, and the space
industry), members of the public, and other interested parties and
may do so through a special advisory committee composed of such
representatives.
SEC. 711. ROTORCRAFT RESEARCH AND DEVELOPMENT INITIATIVE.

(a) OBJECTIVE.—The Administrator of the Federal Aviation
Administration shall establish a rotorcraft initiative with the objective of developing, and demonstrating in a relevant environment,
within 10 years after the date of the enactment of this Act, technologies to enable rotorcraft with the following improvements relative to rotorcraft existing as of the date of the enactment of
this Act:
(1) 80 percent reduction in noise levels on takeoff and
on approach and landing as perceived by a human observer.
(2) Factor of 10 reduction in vibration.
(3) 30 percent reduction in empty weight.
(4) Predicted accident rate equivalent to that of fixed-wing
aircraft in commercial service within 10 years after the date
of the enactment of this Act.
(5) Capability for zero-ceiling, zero-visibility operations.
(b) IMPLEMENTATION.—Within 180 days after the date of the
enactment of this Act, the Administrator of the Federal Aviation
Administration, in cooperation with the Administrator of the
National Aeronautics and Space Administration, shall provide a
plan to the Committee on Science of the House of Representatives
and to the Committee on Commerce, Science, and Transportation
of the Senate for the implementation of the initiative described
in subsection (a).

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49 USC 44504
note.

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PUBLIC LAW 108–176—DEC. 12, 2003

SEC. 712. AIRPORT COOPERATIVE RESEARCH PROGRAM.

Establishment.

Contracts.

Deadline.

Section 44511 is amended by adding at the end the following
new subsection:
‘‘(f) AIRPORT COOPERATIVE RESEARCH PROGRAM.—
‘‘(1) ESTABLISHMENT.—The Secretary of Transportation
shall establish a 4-year pilot airport cooperative research program to—
‘‘(A) identify problems that are shared by airport operating agencies and can be solved through applied research
but that are not being adequately addressed by existing
Federal research programs; and
‘‘(B) fund research to address those problems.
‘‘(2) GOVERNANCE.—The Secretary of Transportation shall
appoint an independent governing board for the research program established under this subsection. The governing board
shall be appointed from candidates nominated by national
associations representing public airport operating agencies, airport executives, State aviation officials, and the scheduled airlines, and shall include representatives of appropriate Federal
agencies. Section 14 of the Federal Advisory Committee Act
shall not apply to the governing board.
‘‘(3) IMPLEMENTATION.—The Secretary of Transportation
shall enter into an arrangement with the National Academy
of Sciences to provide staff support to the governing board
established under paragraph (2) and to carry out projects proposed by the governing board that the Secretary considers
appropriate.
‘‘(4) REPORT.—Not later than 6 months after the expiration
of the program under this subsection, the Secretary shall
transmit to the Congress a report on the program, including
recommendations as to the need for establishing a permanent
airport cooperative research program.’’.

TITLE VIII—MISCELLANEOUS
SEC. 801. DEFINITIONS.

(a) IN GENERAL.—Section 47102 is amended—
(1) by redesignating paragraphs (19) and (20) as paragraphs
(24) and (25), respectively;
(2) by inserting after paragraph (18) the following:
‘‘(23) ‘small hub airport’ means a commercial service airport
that has at least 0.05 percent but less than 0.25 percent of
the passenger boardings.’’;
(3) in paragraph (10) by striking subparagraphs (A) and
(B) and inserting following:
‘‘(A) means, unless the context indicates otherwise,
revenue passenger boardings in the United States in the
prior calendar year on an aircraft in service in air commerce, as the Secretary determines under regulations the
Secretary prescribes; and
‘‘(B) includes passengers who continue on an aircraft
in international flight that stops at an airport in the 48
contiguous States, Alaska, or Hawaii for a nontraffic purpose.’’;
(4) by redesignating paragraphs (10) through (18) as paragraphs (14) through (22), respectively;

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PUBLIC LAW 108–176—DEC. 12, 2003

117 STAT. 2587

(5) by inserting after paragraph (9) the following:
‘‘(10) ‘large hub airport’ means a commercial service airport
that has at least 1.0 percent of the passenger boardings.
‘‘(12) ‘medium hub airport’ means a commercial service
airport that has at least 0.25 percent but less than 1.0 percent
of the passenger boardings.
‘‘(13) ‘nonhub airport’ means a commercial service airport
that has less than 0.05 percent of the passenger boardings.’’;
and
(6) by striking paragraph (6) and inserting the following:
‘‘(6) ‘amount made available under section 48103’ or
‘amount newly made available’ means the amount authorized
for grants under section 48103 as that amount may be limited
in that year by a subsequent law, but as determined without
regard to grant obligation recoveries made in that year or
amounts covered by section 47107(f).’’.
(b) CONFORMING AMENDMENT.—Section 47116(b)(1) is amended
by striking ‘‘(as defined in section 41731 of this title)’’.
SEC. 802. REPORT ON AVIATION SAFETY REPORTING SYSTEM.

Deadline.

Not later than 90 days after the date of enactment of this
Act, the Administrator of the Federal Aviation Administration shall
transmit to Congress a report on the long-term goals and objectives
of the Aviation Safety Reporting System and how such system
interrelates with other safety reporting systems of the Federal
Government.
SEC. 803. ANCHORAGE AIR TRAFFIC CONTROL.

(a) IN GENERAL.—Not later than September 30, 2004, the
Administrator of the Federal Aviation Administration shall complete a study and transmit a report to the appropriate committees
regarding the feasibility of consolidating the Anchorage Terminal
Radar Approach Control and the Anchorage Air Route Traffic Control Center at the existing Anchorage Air Route Traffic Control
Center facility.
(b) APPROPRIATE COMMITTEES.—In this section, the term
‘‘appropriate committees’’ means the Committee on Commerce,
Science, and Transportation of the Senate and the Committee on
Transportation and Infrastructure of the House of Representatives.

Deadline.
Reports.

SEC. 804. EXTENSION OF METROPOLITAN WASHINGTON AIRPORTS
AUTHORITY.

Section 49108 is amended by striking ‘‘2004’’ and inserting
‘‘2008’’.
SEC. 805. IMPROVEMENT OF AVIATION INFORMATION COLLECTION.

(a) IN GENERAL.—Section 329(b)(1) is amended by striking
‘‘except that in no case’’ and all that follows through the semicolon
at the end and inserting the following: ‘‘except that, if the Secretary
requires air carriers to provide flight-specific information, the
Secretary—
‘‘(A) shall not disseminate fare information for a specific flight to the general public for a period of at least
9 months following the date of the flight; and
‘‘(B) shall give due consideration to and address confidentiality concerns of carriers, including competitive
implications, in any rulemaking prior to adoption of a

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117 STAT. 2588

49 USC 329 note.

PUBLIC LAW 108–176—DEC. 12, 2003

rule requiring the dissemination to the general public of
any flight-specific fare;’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall take effect on the date of the issuance of a final rule to
modernize the Origin and Destination Survey of Airline Passenger
Traffic, pursuant to the Advance Notice of Proposed Rulemaking
published July 15, 1998 (Regulation Identifier Number 2105–AC71),
that reduces the reporting burden for air carriers through electronic
filing of the survey data collected under section 329(b)(1) of title
49, United States Code.
SEC. 806. GOVERNMENT-FINANCED AIR TRANSPORTATION.

Section 40118(f)(2) is amended by inserting before the period
at the end the following: ‘‘, except that it shall not include a
contract for the transportation by air of passengers’’.
SEC. 807. AIR CARRIER CITIZENSHIP.

Section 40102(a)(15)(C) is amended by inserting ‘‘which is under
the actual control of citizens of the United States,’’ before ‘‘and
in which’’.
SEC.

808.

UNITED STATES
INDUSTRY.

PRESENCE

IN

GLOBAL

AIR

CARGO

Section 41703 is amended by adding at the end the following:
‘‘(e) CARGO IN ALASKA.—
‘‘(1) IN GENERAL.—For the purposes of subsection (c),
eligible cargo taken on or off any aircraft at a place in Alaska
in the course of transportation of that cargo by any combination
of 2 or more air carriers or foreign air carriers in either direction
between a place in the United States and a place outside
the United States shall not be deemed to have broken its
international journey in, be taken on in, or be destined for
Alaska.
‘‘(2) ELIGIBLE CARGO.—For purposes of paragraph (1), the
term ‘eligible cargo’ means cargo transported between Alaska
and any other place in the United States on a foreign air
carrier (having been transported from, or thereafter being
transported to, a place outside the United States on a different
air carrier or foreign air carrier) that is carried—
‘‘(A) under the code of a United States air carrier
providing air transportation to Alaska;
‘‘(B) on an air carrier way bill of an air carrier providing
air transportation to Alaska;
‘‘(C) under a term arrangement or block space agreement with an air carrier; or
‘‘(D) under the code of a United States air carrier
for purposes of transportation within the United States.’’.
SEC. 809. AVAILABILITY OF AIRCRAFT ACCIDENT SITE INFORMATION.

Notice.

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(a) DOMESTIC AIR TRANSPORTATION.—Section 41113(b) is
amended—
(1) in paragraph (16) by striking ‘‘the air carrier’’ the third
place it appears; and
(2) by adding at the end the following:
‘‘(17)(A) An assurance that, in the case of an accident
that results in significant damage to a manmade structure
or other property on the ground that is not government-owned,
the air carrier will promptly provide notice, in writing, to

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117 STAT. 2589

the extent practicable, directly to the owner of the structure
or other property about liability for any property damage and
means for obtaining compensation.
‘‘(B) At a minimum, the written notice shall advise an
owner (i) to contact the insurer of the property as the authoritative source for information about coverage and compensation;
(ii) to not rely on unofficial information offered by air carrier
representatives about compensation by the air carrier for
accident-site property damage; and (iii) to obtain photographic
or other detailed evidence of property damage as soon as possible after the accident, consistent with restrictions on access
to the accident site.
‘‘(18) An assurance that, in the case of an accident in
which the National Transportation Safety Board conducts a
public hearing or comparable proceeding at a location greater
than 80 miles from the accident site, the air carrier will ensure
that the proceeding is made available simultaneously by electronic means at a location open to the public at both the
origin city and destination city of the air carrier’s flight if
that city is located in the United States.’’.
(b) FOREIGN AIR TRANSPORTATION.—Section 41313(c) is
amended by adding at the end the following:
‘‘(17) NOTICE CONCERNING LIABILITY FOR MANMADE STRUCTURES.—
‘‘(A) IN GENERAL.—An assurance that, in the case of
an accident that results in significant damage to a manmade structure or other property on the ground that is
not government-owned, the foreign air carrier will promptly
provide notice, in writing, to the extent practicable, directly
to the owner of the structure or other property about
liability for any property damage and means for obtaining
compensation.
‘‘(B) MINIMUM CONTENTS.—At a minimum, the written
notice shall advise an owner (i) to contact the insurer
of the property as the authoritative source for information
about coverage and compensation; (ii) to not rely on unofficial information offered by foreign air carrier representatives about compensation by the foreign air carrier for
accident-site property damage; and (iii) to obtain photographic or other detailed evidence of property damage as
soon as possible after the accident, consistent with restrictions on access to the accident site.
‘‘(18) SIMULTANEOUS ELECTRONIC TRANSMISSION OF NTSB
HEARING.—An assurance that, in the case of an accident in
which the National Transportation Safety Board conducts a
public hearing or comparable proceeding at a location greater
than 80 miles from the accident site, the foreign air carrier
will ensure that the proceeding is made available simultaneously by electronic means at a location open to the public
at both the origin city and destination city of the foreign air
carrier’s flight if that city is located in the United States.’’.
(c) UPDATE PLANS.—Air carriers and foreign air carriers shall
update their plans under sections 41113 and 41313 of title 49,
United States Code, respectively, to reflect the amendments made
by subsections (a) and (b) of this section not later than 90 days
after the date of enactment of this Act.

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Electronic
information.

Deadline.
49 USC 41113
note.

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PUBLIC LAW 108–176—DEC. 12, 2003

SEC. 810. NOTICE CONCERNING AIRCRAFT ASSEMBLY.

(a) IN GENERAL.—Subchapter I of chapter 417 is amended
by adding at the end the following:
Effective date.

‘‘§ 41723. Notice concerning aircraft assembly
‘‘The Secretary of Transportation shall require, beginning after
the last day of the 18-month period following the date of enactment
of this section, an air carrier using an aircraft to provide scheduled
passenger air transportation to display a notice, on an information
placard available to each passenger on the aircraft, that informs
the passengers of the nation in which the aircraft was finally
assembled.’’.
(b) CONFORMING AMENDMENT.—The analysis for chapter 417
is amended by inserting after the item relating to section 41722
the following:
‘‘41723. Notice concerning aircraft assembly.’’.
SEC. 811. TYPE CERTIFICATES.

Section 44704(a) is amended by adding at the end the following:
‘‘(3) If the holder of a type certificate agrees to permit another
person to use the certificate to manufacture a new aircraft, aircraft
engine, propeller, or appliance, the holder shall provide the other
person with written evidence, in a form acceptable to the Administrator, of that agreement. Such other person may manufacture
a new aircraft, aircraft engine, propeller, or appliance based on
a type certificate only if such other person is the holder of the
type certificate or has permission from the holder.’’.
49 USC 40105
note.

SEC. 812. RECIPROCAL AIRWORTHINESS CERTIFICATION.

(a) IN GENERAL.—As part of their bilateral negotiations with
foreign nations and their civil aviation counterparts, the Secretary
of State and the Administrator of the Federal Aviation Administration shall facilitate the reciprocal airworthiness certification of aviation products.
(b) RECIPROCAL AIRWORTHINESS DEFINED.—In this section, the
term ‘‘reciprocal airworthiness certification of aviation products’’
means that the regulatory authorities of each nation perform a
similar review in certifying or validating the certification of aircraft
and aircraft components of other nations.
SEC. 813. INTERNATIONAL ROLE OF THE FAA.

Section 40104(b) is amended to read as follows:
‘‘(b) INTERNATIONAL ROLE OF THE FAA.—The Administrator
shall promote and achieve global improvements in the safety, efficiency, and environmental effect of air travel by 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.’’.
SEC. 814. FLIGHT ATTENDANT CERTIFICATION.

(a) IN GENERAL.—Chapter 447 is further amended by adding
at the end the following:
‘‘§ 44728. Flight attendant certification
‘‘(a) CERTIFICATE REQUIRED.—
‘‘(1) IN GENERAL.—No person may serve as a flight attendant aboard an aircraft of an air carrier unless that person

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holds a certificate of demonstrated proficiency from the
Administrator of the Federal Aviation Administration. Upon
the request of the Administrator or an authorized representative of the National Transportation Safety Board or another
Federal agency, a person who holds such a certificate shall
present the certificate for inspection within a reasonable period
of time after the date of the request.
‘‘(2) SPECIAL RULE FOR CURRENT FLIGHT ATTENDANTS.—
An individual serving as a flight attendant on the effective
date of this section may continue to serve aboard an aircraft
as a flight attendant until completion by that individual of
the required recurrent or requalification training and subsequent certification under this section.
‘‘(3) TREATMENT OF FLIGHT ATTENDANT AFTER NOTIFICATION.—On the date that the Administrator is notified by an
air carrier that an individual has the demonstrated proficiency
to be a flight attendant, the individual shall be treated for
purposes of this section as holding a certificate issued under
the section.
‘‘(b) ISSUANCE OF CERTIFICATE.—The Administrator shall issue
a certificate of demonstrated proficiency under this section to an
individual after the Administrator is notified by the air carrier
that the individual has successfully completed all the training
requirements for flight attendants approved by the Administrator.
‘‘(c) DESIGNATION OF PERSON TO DETERMINE SUCCESSFUL
COMPLETION OF TRAINING.—In accordance with part 183 of chapter
14, Code of Federal Regulation, the director of operations of an
air carrier is designated to determine that an individual has successfully completed the training requirements approved by the Administrator for such individual to serve as a flight attendant.
‘‘(d) SPECIFICATIONS RELATING TO CERTIFICATES.—Each certificate issued under this section shall—
‘‘(1) be numbered and recorded by the Administrator;
‘‘(2) contain the name, address, and description of the individual to whom the certificate is issued;
‘‘(3) is similar in size and appearance to certificates issued
to airmen;
‘‘(4) contain the airplane group for which the certificate
is issued; and
‘‘(5) be issued not later than 120 days after the Administrator receives notification from the air carrier of demonstrated
proficiency and, in the case of an individual serving as flight
attendant on the effective date of this section, not later than
1 year after such effective date.
‘‘(e) APPROVAL OF TRAINING PROGRAMS.—Air carrier flight
attendant training programs shall be subject to approval by the
Administrator. All flight attendant training programs approved by
the Administrator in the 1-year period ending on the date of enactment of this section shall be treated as providing a demonstrated
proficiency for purposes of meeting the certification requirements
of this section.
‘‘(f) FLIGHT ATTENDANT DEFINED.—In this section, the term
‘flight attendant’ means an individual working as a flight attendant
in the cabin of an aircraft that has 20 or more seats and is
being used by an air carrier to provide air transportation.’’.

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PUBLIC LAW 108–176—DEC. 12, 2003

(b) CONFORMING AMENDMENT.—The analysis for chapter 447
is further amended by adding at the end the following:
‘‘44728. Flight attendant certification.’’.
49 USC 44728
note.

(c) EFFECTIVE DATE.—The amendments made by subsections
(a) and (b) shall take effect on the 365th day following the date
of enactment of this Act.

49 USC 40101
note.

SEC. 815. AIR QUALITY IN AIRCRAFT CABINS.

Deadline.

(a) IN GENERAL.—The Administrator of the Federal Aviation
Administration shall undertake the studies and analysis called
for in the report of the National Research Council entitled ‘‘The
Airliner Cabin Environment and the Health of Passengers and
Crew’’.
(b) REQUIRED ACTIVITIES.—In carrying out this section, the
Administrator, at a minimum, shall—
(1) conduct surveillance to monitor ozone in the cabin on
a representative number of flights and aircraft to determine
compliance with existing Federal Aviation Regulations for
ozone;
(2) collect pesticide exposure data to determine exposures
of passengers and crew;
(3) analyze samples of residue from aircraft ventilation
ducts and filters after air quality incidents to identify the
contaminants to which passengers and crew were exposed;
(4) analyze and study cabin air pressure and altitude;
and
(5) establish an air quality incident reporting system.
(c) REPORT.—Not later than 30 months after the date of enactment of this Act, the Administrator shall transmit to Congress
a report on the findings of the Administrator under this section.
SEC. 816. RECOMMENDATIONS CONCERNING TRAVEL AGENTS.

Deadline.

(a) REPORT.—Not later than 6 months after the date of enactment of this Act, the Secretary of Transportation shall transmit
to Congress a report on any actions that should be taken with
respect to recommendations made by the National Commission
to Ensure Consumer Information and Choice in the Airline Industry
on—
(1) the travel agent arbiter program; and
(2) the special box on tickets for agents to include their
service fee charges.
(b) CONSULTATION.—In preparing this report, the Secretary
shall consult with representatives from the airline and travel agent
industry.

49 USC 40101
note.

SEC. 817. REIMBURSEMENT FOR LOSSES INCURRED BY GENERAL AVIATION ENTITIES.

(a) IN GENERAL.—The Secretary of Transportation may make
grants to reimburse the following general aviation entities for the
security costs incurred and revenue foregone as a result of the
restrictions imposed by the Federal Government following the terrorist attacks on the United States that occurred on September
11, 2001:
(1) General aviation entities that operate at Ronald Reagan
Washington National Airport.
(2) Airports that are located within 15 miles of Ronald
Reagan Washington National Airport and were operating under

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security restrictions on the date of enactment of this Act and
general aviation entities operating at those airports.
(3) General aviation entities affected by implementation
of section 44939 of title 49, United States Code.
(4) General aviation entities that were affected by Federal
Aviation Administration Notices to Airmen FDC 2/1099 and
3/1862 or section 352 of the Department of Transportation
and Related Agencies Appropriations Act, 2003 (Public Law
108–7, division I), or both.
(5) Sightseeing operations that were not authorized to
resume in enhanced class B air space under Federal Aviation
Administration notice to airmen 1/1225.
(b) DOCUMENTATION.—Reimbursement under this section shall
be made in accordance with sworn financial statements or other
appropriate data submitted by each general aviation entity demonstrating the costs incurred and revenue foregone to the satisfaction of the Secretary.
(c) GENERAL AVIATION ENTITY DEFINED.—In this section, the
term ‘‘general aviation entity’’ means any person (other than a
scheduled air carrier or foreign air carrier, as such terms are
defined in section 40102 of title 49, United States Code) that—
(1) operates nonmilitary aircraft under part 91 of title
14, Code of Federal Regulations, for the purpose of conducting
its primary business;
(2) manufactures nonmilitary aircraft with a maximum
seating capacity of fewer than 20 passengers or aircraft parts
to be used in such aircraft;
(3) provides services necessary for nonmilitary operations
under such part 91; or
(4) operates an airport, other than a primary airport (as
such terms are defined in such section 40102), that—
(A) is listed in the national plan of integrated airport
systems developed by the Federal Aviation Administration
under section 47103 of such title; or
(B) is normally open to the public, is located within
the confines of enhanced class B airspace (as defined by
the Federal Aviation Administration in Notice to Airmen
FDC 1/0618), and was closed as a result of an order issued
by the Federal Aviation Administration in the period beginning September 11, 2001, and ending January 1, 2002,
and remained closed as a result of that order on January
1, 2002.
Such term includes fixed based operators, flight schools, manufacturers of general aviation aircraft and products, persons engaged
in nonscheduled aviation enterprises, and general aviation independent contractors.
(d) AUTHORIZATION OF APPROPRIATIONS.—There is authorized
to be appropriated to carry out this section $100,000,000. Such
sums shall remain available until expended.
SEC. 818. INTERNATIONAL AIR SHOW.

If the Secretary of Defense conducts activities necessary to
enable the United States to host a major international air show
in the United States, the Secretary of Defense shall coordinate
such activities with the Secretary of Transportation and the Secretary of Commerce.

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117 STAT. 2594
Deadline.

PUBLIC LAW 108–176—DEC. 12, 2003

SEC.

819.

REPORT ON CERTAIN MARKET
GOVERNMENT POLICIES.

DEVELOPMENTS

AND

Within 6 months after the date of enactment of this Act, the
Department of Commerce, in consultation with the Department
of Transportation and other 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-vis the
European Union aerospace and aviation industry; and
(5) describes any other significant developments that affect
the market for jet transport aircraft.
SEC. 820. INTERNATIONAL AIR TRANSPORTATION.

It is the sense of Congress that, in an effort to modernize
its regulations, the Department of Transportation should formally
define ‘‘Fifth Freedom’’ and ‘‘Seventh Freedom’’ consistently for
both scheduled and charter passenger and cargo traffic.
49 USC 44903
note.

SEC.

821.

REIMBURSEMENT OF AIR CARRIERS
SCREENING AND RELATED ACTIVITIES.

FOR

CERTAIN

The Secretary of Homeland Security, subject to the availability
of funds (other than amounts in the Aviation Trust Fund) provided
for this purpose, shall reimburse air carriers and airports for—
(1) the screening of catering supplies; and
(2) checking documents at security checkpoints.
SEC. 822. CHARTER AIRLINES.

(a) IN GENERAL.—Section 41104(b)(1) is amended—
(1) by striking ‘‘paragraph (3)’’ and inserting ‘‘paragraphs
(3) and (4)’’;
(2) by inserting a comma after ‘‘regularly scheduled charter
air transportation’’; and
(3) by striking ‘‘flight unless such air transportation’’ and
all that follows through the period at the end and inserting
the following: ‘‘flight, to or from an airport that—

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‘‘(A) does not have an airport operating certificate
issued under part 139 of title 14, Code of Federal Regulations (or any subsequent similar regulation); or
‘‘(B) has an airport operating certificate issued under
part 139 of title 14, Code of Federal Regulations (or any
subsequent similar regulation) if the airport—
‘‘(i) is a reliever airport (as defined in section
47102) and is designated as such in the national plan
of integrated airports maintained under section 47103;
and
‘‘(ii) is located within 20 nautical miles (22 statute
miles) of 3 or more airports that each annually account
for at least 1 percent of the total United States passenger enplanements and at least 2 of which are operated by the sponsor of the reliever airport.’’.
(b) WAIVERS.—Section 41104(b) is amended by adding at the
end the following:
‘‘(4) WAIVERS.—The Secretary may waive the application
of paragraph (1)(B) in cases in which the Secretary determines
that the public interest so requires.’’.
SEC. 823. GENERAL AVIATION FLIGHTS AT RONALD REAGAN WASHINGTON NATIONAL AIRPORT.

(a) SECURITY PLAN.—The Secretary of Homeland Security shall
develop and implement a security plan to permit general aviation
aircraft to land and take off at Ronald Reagan Washington National
Airport.
(b) LANDINGS AND TAKEOFFS.—The Administrator of the Federal Aviation Administration shall allow general aviation aircraft
that comply with the requirements of the security plan to land
and take off at the Airport except during any period that the
President suspends the plan developed under subsection (a) due
to national security concerns.
(c) REPORT.—If the President suspends the security plan developed under subsection (a), the President shall submit to the Senate
Committee on Commerce, Science, and Transportation and the
House of Representatives Committee on Transportation and Infrastructure a report on the reasons for the suspension not later
than 30 days following the first day of the suspension. The report
may be submitted in classified form.
SEC. 824. REVIEW OF AIR CARRIER COMPENSATION.

Not later than 6 months after the date of enactment of this
Act, the Comptroller General shall submit to Congress a report
on the criteria and procedures used by the Secretary of Transportation under the Air Transportation Safety and System Stabilization
Act (Public Law 107–42) to compensate air carriers after the terrorist attack of September 11, 2001, with a particular focus on
whether it is appropriate—
(1) to compensate air carriers for the decrease in value
of their aircraft after September 11, 2001; and
(2) to ensure that comparable air carriers receive comparable percentages of the maximum compensation payable
under section 103(b)(2) of such Act (49 U.S.C. 40101 note).

49 USC 41718
note.

President.

Deadline.
Reports.

SEC. 825. NOISE CONTROL PLAN FOR CERTAIN AIRPORTS.

(a) IN GENERAL.—Notwithstanding chapter 475 of title 49,
United States Code, or any other provision of law or regulation,

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PUBLIC LAW 108–176—DEC. 12, 2003

a sponsor of a commercial service airport that does not own the
airport land and is a party to a long-term lease agreement with
a Federal agency (other than the Department of Defense or the
Department of Transportation) may impose restrictions on, or prohibit, the operation of Stage 2 aircraft weighing less than 75,000
pounds, in order to help meet the noise control plan contained
within the lease agreement. A use restriction imposed pursuant
to this section must contain reasonable exemptions for public health
and safety.
(b) PUBLIC NOTICE AND COMMENT.—Prior to imposing restrictions on, or prohibiting, the operation of Stage 2 aircraft weighing
less than 75,000 pounds, the airport sponsor must provide reasonable notice and the opportunity to comment on the proposed airport
use restriction limited to no more than 90 days.
(c) DEFINITIONS.—In this section, the terms ‘‘Stage 2 aircraft’’
and ‘‘Stage 3 aircraft’’ have the same meaning as those terms
have in chapter 475 of title 49, United States Code.
49 USC 40101
note.

Deadline.

Certification.

SEC. 826. GAO REPORT ON AIRLINES’ ACTIONS TO IMPROVE FINANCES
AND ON EXECUTIVE COMPENSATION.

(a) FINDING.—Congress finds that the United States Government has by law provided substantial financial assistance to United
States commercial airlines in the form of war risk insurance and
reinsurance and other economic benefits and has imposed substantial economic and regulatory burdens on those airlines. In order
to determine the economic viability of the domestic commercial
airline industry and to evaluate the need for additional measures
or the modification of existing laws, Congress needs more frequent
information and independently verified information about the financial condition of these airlines.
(b) GAO REPORT.—Not later than one year after the date of
enactment of this Act, the Comptroller General shall prepare a
report for Congress analyzing the financial condition of the United
States airline industry in its efforts to reduce the costs, improve
the earnings and profits and balances of each individual air carrier.
The report shall recommend steps that the industry should take
to become financially self-sufficient.
(c) GAO AUTHORITY.—In order to compile the report required
by subsection (b), the Comptroller General, or any of the Comptroller General’s duly authorized representatives, shall have access
for the purpose of audit and examination to any books, accounts,
documents, papers, and records of such air carriers that relate
to the information required to compile the report. The Comptroller
General shall submit with the report a certification as to whether
the Comptroller General has had access to sufficient information
to make informed judgments on the matters covered by the report.
(d) REPORTS TO CONGRESS.—The Comptroller General shall
transmit the report required by subsection (b) to the Senate Committee on Commerce, Science, and Transportation and the House
of Representatives Committee on Transportation and Infrastructure.
SEC. 827. PRIVATE AIR CARRIAGE IN ALASKA.

(a) IN GENERAL.—Due to the demands of conducting business
within and from the State of Alaska, the Secretary of Transportation
shall permit, under the operating rules of part 91 of title 14 of
the Code of Federal Regulations where common carriage is not
involved, a company, located in the State of Alaska, to organize

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a subsidiary where the only enterprise of the subsidiary is to
provide air carriage of officials, employees, guests, and property
of the company, or its affiliate, when the carriage—
(1) originates or terminates in the State of Alaska;
(2) is by an aircraft with no more than 20 seats;
(3) is within the scope of, and incidental to, the business
of the company or its affiliate; and
(4) no charge, assessment, or fee is made for the carriage
in excess of the cost of owning, operating, and maintaining
the airplane.
(b) LIMITATION ON STATUTORY CONSTRUCTION.—Nothing in this
subsection shall be construed as prohibiting a company from making
intermediate stops in providing air carriage under this section.
SEC. 828. REPORT ON WAIVERS OF PREFERENCE FOR BUYING GOODS
PRODUCED IN THE UNITED STATES.

Deadline.

Not later than 90 days after the date of the enactment of
this Act, the Secretary of Transportation shall submit to Congress
a report on the waiver contained in section 50101(b) of title 49,
United States Code (relating to buying goods produced in the United
States). The report shall, at a minimum, include—
(1) a list of all waivers granted pursuant to that section
during the 2-year period ending on the date of enactment
of that section; and
(2) for each such waiver—
(A) the specific authority under such section 50101(b)
for granting the waiver; and
(B) the rationale for granting the waiver.
SEC. 829. NAVIGATION FEES.

(a) IN GENERAL.—Section 4(b) of the Rivers and Harbors Appropriation Act of July 5, 1884 (33 U.S.C. 5(b); 116 Stat. 2133), is
amended—
(1) by striking ‘‘or’’ at the end of paragraph (1);
(2) by striking the period at the end of paragraph (2)
and inserting ‘‘; or’’; and
(3) by adding at the end the following:
‘‘(3) property taxes on vessels or watercraft, other than
vessels or watercraft that are primarily engaged in foreign
commerce if those taxes are permissible under the United
States Constitution.’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
is effective on and after November 25, 2002.

33 USC 5 note.

TITLE IX—EXTENSION OF AIRPORT AND
AIRWAY TRUST FUND EXPENDITURE
AUTHORITY
SEC. 901. EXTENSION OF EXPENDITURE AUTHORITY.

(a) IN GENERAL.—Paragraph (1) of section 9502(d) of the
Internal Revenue Code of 1986 (relating to expenditures from Airport and Airway Trust Fund) is amended—
(1) by striking ‘‘October 1, 2003’’ and inserting ‘‘October
1, 2007’’, and

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(2) by inserting before the semicolon at the end of subparagraph (A) the following: ‘‘or the Vision 100—Century of Aviation
Reauthorization Act’’.
(b) CONFORMING AMENDMENT.—Paragraph (2) of section 9502(f)
of the Internal Revenue Code of 1986 is amended by striking
‘‘October 1, 2003’’ and inserting ‘‘October 1, 2007’’.
SEC. 902. TECHNICAL CORRECTION TO FLIGHT SEGMENT.
26 USC 4261.

26 USC 4261
note.

(a) SPECIAL RULE.—Section 4261(e)(4) of the Internal Revenue
Code of 1986 is amended by adding at the end the following new
subparagraph:
‘‘(D) SPECIAL RULE FOR AMOUNTS PAID FOR DOMESTIC
SEGMENTS BEGINNING AFTER 2002.—If an amount is paid
during a calendar year for a domestic segment beginning
in a later calendar year, then the rate of tax under subsection (b) on such amount shall be the rate in effect
for the calendar year in which such amount is paid.’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall take effect as if included in the provisions of the Taxpayer
Relief Act of 1997 to which they relate.
Approved December 12, 2003.

LEGISLATIVE HISTORY—H.R. 2115 (S. 824):
HOUSE REPORTS: Nos. 108–143 (Comm. on Transportation and Infrastructure)
and 108–240 and 108–334 (both from Comm. of Conference).
SENATE REPORTS: No. 108–41 accompanying S. 824 (Comm. on Commerce,
Science, and Transportation).
CONGRESSIONAL RECORD, Vol. 149 (2003):
June 11, considered and passed House.
June 12, considered and passed Senate, amended, in lieu of S. 824.
Oct. 28, House recommitted conference report pursuant to H. Res. 337.
Oct. 30, House agreed to conference report.
Nov. 21, Senate agreed to conference report.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 39 (2003):
Dec. 12, Presidential statement.

Æ

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