Aviation Administration FY2004-2006 Authorization bill

Vision 100 - Century of Aviation Reauthorization Act - Title I: Airport and Airway Improvements - Subtitle A: Funding of FAA Programs - (Sec. 101) Amends Federal aviation law to authorize appropriations for FY 2004 through 2007 for: (1) airport and noise compatibility planning and development; (2) air navigation facilities and equipment; (3) the Federal Aviation Administration (FAA); and (4) the funding of various aviation programs from the general fund of the Treasury.

(Sec. 102) Earmarks air navigation facilities and equipment funds to: (1) enhance safety and security for aircraft operations in the Gulf of Mexico; (2) develop and analyze wake vortex advisory systems; (3) establish a program for the installation of a precision approach aid designed to improve aircraft accessibility at mountainous airports with limited land; (4) establish a program to improve the efficiency, cost effectiveness, and environmental performance of standby power systems at FAA sites, including the implementation of fuel cell technology; and (5) conduct 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) Earmarks FAA operations funds for: (1) the Center for Management Development of the FAA to operate training courses and to support associated student travel for both residential and field courses; (2) the Air Traffic Control Collegiate Training Initiative; (3) the completion of the Alaska aviation safety project with respect to the three dimensional mapping of Alaska's main aviation corridors; and (4) the Aviation Safety Reporting System.

Authorizes appropriations out of the Airport and Airway Trust Fund for FY 2004 through 2007 to gather and analyze aviation data in the Bureau of Transportation Statistics of the Department of Transportation (DOT).

(Sec. 104) Authorizes appropriations through FY 2007 for aviation programs.

(Sec. 105) Requires the Secretary of Transportation (Secretary) to ensure that an agreement between the U.S. Government and a qualified entity, State, or local government allowing the entity, State, or local government to operate an airport facility relieves the U.S. Government from any liability arising out of, or related to, acts or omissions of entity, State, or local employees in operating such facility.

Authorizes appropriations for FY 2004 through 2007 for the air traffic control contract program (now made permanent). Increases the maximum Federal share of costs for the construction of a nonapproach traffic control tower from $1.1 million to $1.5 million.

(Sec. 106) Authorizes the Secretary to provide insurance in excess of the greater amount of available primary insurance or $50 million to aircraft manufacturers for loss or damage resulting from operation of an aircraft by a domestic carrier and involving war and terrorism.

Authorizes the Secretary to extend to the U.S. manufacturer of the aircraft of the air carrier involved the limitation of $100 million in liability for third party claims arising out of acts of terrorism, as well as immunity from punitive damages (with the Federal Government responsible for any liability above $100 million). Extends the current authority of the Secretary to provide air carrier insurance and reinsurance through March 30, 2008.

Subtitle B: Passenger Facility Fees - (Sec. 121) Includes among eligible airport-related projects financed through a passenger facility fee a project in an air quality nonattainment or maintenance area for: (1) the conversion of vehicles and ground support equipment used at a commercial service airport to low-emission technology or to use cleaner burning conventional fuels; (2) the retrofitting of such vehicles or equipment powered by a diesel or gasoline engine with EPA-certified emission control technologies; or (3) the acquisition of airport vehicles and ground support equipment that include low-emission technology or use cleaner burning fuels. Requires such a project to result in an airport's receiving appropriate emission credits. Limits the maximum cost that may be financed by imposition of a passenger facility fee for such low-technology projects.

(Sec. 122) Declares that the Secretary may authorize use of a passenger facility fee for making debt service payments on indebtedness incurred to carry out at the airport a project that is not an eligible airport-related project, provided the Secretary determines that such use is necessary owing to the airport's financial need.

(Sec. 123) Revises certain passenger facility fee requirements to provide that an eligible agency applying to impose a passenger facility fee that provides notice and an opportunity for consultation to an domestic or foreign air carrier is deemed to have satisfied certain application requirements if it limits such notices and consultations to domestic and foreign air carriers that have a significant business interest at an airport, that is, one: (1) that had at least one percent of passenger boardings at the airport in the prior calendar year, and which amounted to at least 25,000 such boardings; or (3) provides scheduled service at the airport.

Requires an eligible agency to provide reasonable notice and an opportunity for public comment before submitting an application to the Secretary. Changes from mandatory to discretionary the authority of the Secretary, after receiving an application, to provide notice and an opportunity to domestic and foreign air carriers and other interested persons to comment on the application.

Establishes a pilot program to test alternative procedures for authorizing eligible agencies for nonhub airport to impose passenger facility fees. Authorizes an eligible agency to impose a passenger facility fee at a nonhub airport. Sets forth program requirements.

Prohibits the collection of a passenger facility fee from a passenger enplaning at an airport on a military charter flight paid for by the Department of Defense.

Requires the Administrator of the FAA to publish in the Federal Register the current Administration policy on the eligibility of airport ground access transportation projects for the use of passenger facility fees.

(Sec. 124) Requires an air carrier to segregate passenger facility revenue in a separate account for the benefit of the eligible agencies entitled to such revenue. Prohibits an air carrier from granting to a third party any security or other interest in such revenue. Entitles an air carrier that collects passenger facility fees to receive interest on passenger facility fee accounts.

Subtitle C: AIP Modifications - (Sec. 141) Makes eligible for airport development project funds routine work to preserve and extend the useful life of runways, taxiways, and aprons at nonhub airports.

(Sec. 142) Requires funding of the replacement of baggage conveyor systems, and reconfiguration of terminal baggage areas, at public-use airports in order to install bulk explosive detection devices to use only amounts apportioned for airport planning and development and noise compatibility planning and programs.

(Sec. 143) Amends the Federal Aviation Reauthorization Act of 1996 to repeal (in order to conform with this Act) certain authority to use certain funds for specified airport security programs and activities.

(Sec. 144) Revises requirements for audit certifications with respect to assurances about airport operations necessary for project grant application approval.

(Sec. 145) Makes an allowable airport development project cost the cost of moving a Federal facility impeding an airport development project, if the rebuilt facility is of an equivalent size and type.

(Sec. 146) Authorizes the Secretary to apportion airport improvement funds to primary airports for FY 2004 and 2005 in the same amount apportioned to such airports for FY 2002 or 2003 (whichever is greater), provided the Secretary finds that: (1) passenger boardings at the airport were below 10,000 in calendar year 2002 or 2003; (2) the airport had at least 10,000 passenger boardings and scheduled passenger aircraft service in either calendar year 2000 or 2001; and (3) the reason that passenger boardings were below 10,000 was the decrease in passengers following the terrorist attacks of September 11, 2001.

(Sec. 147) Increases from three percent to 3.5 percent the mandatory annual apportionment of airport improvement amounts to sponsors of airports served by aircraft transporting only cargo with a total annual landed weight of more than 100 million pounds.

(Sec. 148) Revises factors the Secretary must consider in selecting a project for a discretionary grant to preserve and improve airport capacity. Sets forth certain other factors that must be considered in selecting an airport development project for a discretionary grant, including whether: (1) funding has been approved for all other projects qualifying for funding during the fiscal year that have attained a higher score under the numerical priority system employed by the Secretary in administering the discretionary fund; and (2) the airport 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 six months afterwards, whichever is later.

(Sec. 149) Authorizes the Secretary to decide that the costs of revenue producing aeronautical support facilities (including fuel farms and hangars) are allowable costs payable by the Government for an airport development project at a nonprimary airport if: (1) the Government's share of such costs is paid only with funds apportioned to an airport sponsor (except for primary airports) under the special rule for fiscal years with $3.2 billion or more available;and (2) the sponsor has made adequate provision for financing airside needs of the airport.

Revises the authorization of an agreement between the sponsor of an airport and the Secretary to waive the sponsor's claim to any part of airport improvement funds apportioned for the airport 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. Extends such waiver authorization to apportionments under the special rule for fiscal years with $3.2 billion or more available.

Authorizes the Secretary to make any part of airport planning and development and noise compatibility planning and program funds apportioned to a sponsor of a nonprimary airport under the special rule available to pay the costs for terminal development at such airport.

(Sec. 150) Revises entitlement to the availability of airport improvement apportionments for three years following the original fiscal year by: (1) repealing such entitlement for any primary airport that had less than .05 percent of the total boardings in the United States in the preceding calendar year; and (2) extending such entitlement to a nonhub airport or any airport that is not a commercial service airport.

(Sec. 151) Increases from 34 percent to 35 percent of amounts available to the discretionary fund for each fiscal year that the Secretary is required to use for grants for for airport noise compatibility planning and programs (as under current law). Includes among the purposes of such grants: (1) carrying out noise mitigation projects approved in an environmental record of decision for an airport development project; (2) compatible land use planning and projects carried by State and local governments; and (3) airport development projects to comply with the Clean Air Act.

(Sec. 152) Directs the Secretary to establish a pilot grant program to support through the award of grants the purchase, by a State or local government, of development rights associated with, or directly affecting the use of, privately owned public use airports located in the State. Sets forth certain grant requirements and standards.

(Sec. 153) Increases the availability of funds from the discretionary fund for FY 2004 and 2005 to sponsors of current or former military airports to improve or repair terminal building facilities, or to construct, improve, or repair certain airport surface parking lots, fuel farms, and utilities, and hangars and air cargo terminals at such airports.

(Sec. 154) Revises the authority of the Administrator of the FAA to contract, using sole source or limited source authority, for the collection of airport safety data. Authorizes cooperative agreements with or and grants to a private company for the collection of such data. Makes the Federal share of cost of the data collection 100 percent.

(Sec. 155) Revises requirements regarding an airport sponsor's sale or long term lease of a general aviation or other type airport to a private person. Revises the Secretary's authority to approve a sponsor's application for an exemption from certain restrictions and assurances regarding the use of local aviation fuel taxes and airport revenues. Allows such an exemption to the extent necessary to permit the sponsor to recover from such sale or lease an amount as may be approved: (1) in the case of a primary airport, by at least 65 percent of the scheduled air carriers serving the airport (currently, by at least 65 percent of the 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 (currently a requirement with respect to all airports); or (2) by the Secretary at any nonprimary airport after the airport has consulted with at least 65 percent of the owners of aircraft based at that airport.

Deems an air carrier to have approved a sponsor's application fro an exemption unless it submits an objection in writing to the sponsor by a certain deadline.

(Sec. 157) Requires the Secretary, in cooperation with the Secretary of Homeland Security, to administer the airport security program.

(Sec. 158) Directs the Administrator of the Environmental Protection Agency (EPA) to issue guidance on how to ensure that airport sponsors receive appropriate emission credits for carrying out air quality projects at certain airports. Sets forth certain requirements for such guidance.

(Sec. 159) Directs the Secretary to carry out a pilot program under which airport sponsors may use airport planning and development and noise compatibility planning and program funds 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 EPA. Limits eligibility for such program to commercial service airports in air quality nonattainment or maintenance areas (proper areas).

Makes eligible for airport development project funds: (1) 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 provided the airport is located in a proper area, and such project will result in an airport receiving appropriate emission credits; and (2) a project for the acquisition or conversion of vehicles and ground support equipment owned by a commercial service airport to low-emission technology provided the airport is located in a proper area, and such project will result in an airport receiving appropriate emission credits.

Declares an allowable cost the cost for a project for acquiring for use at a commercial service airport vehicles and certain ground support equipment owned by a 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.

Defines low-emission technologies technology for vehicles and equipment whose emission performance is the best achievable under EPA emission standards, relying exclusively on alternative fuels that are substantially non-petroleum based, but not excluding hybrid systems or natural gas powered vehicles.

(Sec. 160) Authorizes the Secretary to make grants from amounts set aside for noise compatibility programs, under the special rule for fiscal years with $3.2 billion or more available, to State and local governments for land use compatibility plans and resulting projects to make the use of land areas around large hub airports and medium hub airports compatible with aircraft operations if certain requirements are met. Sets forth certain grant requirements.

(Sec. 161) Increases from 90 to 95 percent for FY 2004 through 2007 the Federal Government's share of costs for specified airport projects funded under the State airport block grant program.

(Sec. 162) Sets forth a formula and related requirements for an increase in the Government's share of allowable project costs 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 five percent of the total area of all lands in the State.

(Sec. 163) Increases from 40 percent to 70 percent the Federal share of a pilot project for private ownership of airports funded by the Administrator from the discretionary fund.

(Sec. 164) Revises requirements for the written assurances the Secretary must receive before approving an application for an airport development project grant for acquiring land for a noise compatibility purpose. Requires the assurances about reinvestment in an approved noise compatibility project as an alternative use of proceeds from disposition of the land to include the purchase of nonresidential buildings or property in the vicinity of residential buildings or property previously purchased by the airport as part of a noise compatibility program.

(Sec. 165) Adds to the written assurances the Secretary must receive before approving an application for an airport development project grant assurance that, 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 the aircraft owner a long-term lease for the hangar.

(Sec. 166) Revises requirements for the use of apportionments to repay money borrowed for terminal development costs to cover apportionments for grants to a nonhub primary airport which is a designated current or former military airport in FY 2003 at which terminal development is carried out between January 2003 and August 2004.

Subtitle D: Miscellaneous - (Sec. 181) Authorizes the FAA Administrator to authorize an airport sponsor, upon application approval, to award a design-build contract (an agreement providing for both design and construction of a project by a contractor) using a selection process permitted under applicable State or local law if specified general requirements are met.

Allows the Administrator to reimburse an airport sponsor for design and construction costs incurred before a grant is made for a design-build contract 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 if the project were carried out after a grant agreement had been executed.

(Sec. 182) Authorizes the FAA Administrator to establish a pilot program to test innovative financing techniques through amending a contract for between one and 20 fiscal years to purchase and install air traffic control equipment for the Administration. Limits such an amendment to between one and ten fiscal years. Allows such a contract to contain a cancellation clause, with a cancellation liability schedule covering reasonable and allocable costs incurred through the cancellation date plus reasonable profit, if any, on those costs.

Allows the Administrator to may make an advance contract provision to achieve economic-lot purchases and more efficient production rates.

Prohibits the Administrator from making any such contract amendments until the program for the terminal automation replacement systems has been rebaselined in accordance with the FAA acquisition management system.

Makes specified funding available.

(Sec. 183) Authorizes the Secretary to carry out a cost-sharing program under which the Secretary may make grants of up to $5 million per project for up to ten eligible air traffic modernization 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. Limits the Federal share of costs to 33 percent. Requires the non-Federal share to be provided from non-Federal sources, including revenues collected from passenger facility fees.

(Sec. 184) Requires the FAA Administrator to report biannually for four years to specified congressional committees on the ten largest air navigation facilities and equipment programs, any budget changes in them, program schedules, and associated technical risks.

(Sec. 185) Amends Federal aviation law to prohibit a public agency (a State or local government, a tax-supported organization, or an Indian tribe or pueblo) from closing permanently an airport listed in the national plan of integrated airport systems without providing written notice to the FAA Administrator at least 30 days before the date of the closure. Establishes a civil penalty of $10,000 per day of closure without notice for any violation of this requirement.

(Sec. 186) Directs the Secretaries of Transportation, Defense, Interior, and Homeland Security to 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 airport's ability to operate on a self-sustaining basis in accordance with FAA standards applicable to commercial airports. Requires the memorandum also to address the long-range potential of promoting tourism as a means to generate revenue to operate the airport.

Authorizes the Midway Island Airport to transfer, without consideration, to the FAA Administrator the navigation aids at the airport, and requires the Administrator to accept, operate, and maintain them.

Authorizes the Secretary of Transportation to enter into a reimbursable agreement with the Secretary of the Interior to fund, out of the Secretary of Transportation's discretionary fund, airport development at Midway Island Airport (up to $2.5 million per year) for fiscal years ending before October 1, 2007.

(Sec. 187) Amends Federal aviation law with regard to intermodal planning to add to the environmental requirements for approval of an airport development project involving the location of an airport, runway, or major runway extension at a medium or large hub airport. Requires the airport sponsor to have made available and 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) Makes the sponsors of airports located in the Republic of the Marshall Islands, Federated States of Micronesia, and Republic of Palau eligible for discretionary fund and small airport grants for FY 2004 through 2007.

(Sec. 189) Prohibits the Secretary from approving in FY 2004 through 2007 any noise compatibility program submitted if it requires the expenditure of certain funds made available for mitigation of aircraft noise less than 65 DNL.

(Sec. 190) Offers the Chaluka Corporation (the village corporation established under the Alaska Native Claims Settlement Act (ANCSA) for the Native Village of Nikolski, Alaska) ownership of the surface estate in the former Nikolski Radio Relay Site on Umnak Island, Alaska, and the Aleut Corporation (the regional corporation established under ANCSA for the region in which the Native Village of Nikolski, Alaska, is located) the subsurface estate of that Site, in exchange for relinquishment by the Chaluka Corporation and the Aleut Corporation of specified property.

Directs the Secretary of the Interior to convey the offered land if the Chaluka Corporation and the Aleut Corporation take the actions specified actions.

Declares that neither the Chaluka Corporation nor the Aleut Corporation shall be subject to any liability for: (1) the presence or release of a hazardous substance on Phase I lands or the presence of solid waste on Phase I lands, which predates their conveyance to the Chaluka and Aleut Corporations; or (2) any release, from any of such hazardous substances or solid wastes following conveyance of Phase I lands, 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.

Directs the Secretary of the Interior, at no cost to the recipient, convey ownership of an estate in fee simple in: (1) each specified Lot that is the subject of an Aleutian Housing Authority mutual help occupancy agreement, to the Aleutian Housing Authority (and the remainder of such Lots to the current occupants); and (2) the Nikolski powerhouse land, to the Indian Reorganization Act Tribal Government for the Native Village of Nikolski, upon completion of a certain environmental restoration if after the restoration the powerhouse continues to be located on the Nikolski powerhouse land, or 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.

Authorizes the Denali Commission to arrange for environmental restoration of the areas on, beneath, and adjacent to the Nikolski powerhouse land that are contaminated as a result of powerhouse operations and activities.

Makes it a condition of the land conveyance that the Chaluka Corporation shall permit the U.S. 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 Act, for any activity associated with management of lands owned by the United States and for other governmental purposes without cost to the Government.

Declares that the Bureau of Land Management is not required to conduct additional on-the-ground surveys as a result of these conveyances.

Authorizes appropriations, including specified funds to reimburse the appropriate State of Alaska agency for costs required for environmental restoration of the Nikolski powerhouse land.

Title II: FAA Organization - Subtitle A: FAA Reform - (Sec. 201) Amends Federal aviation law to reduce the size of the Federal Aviation Management Advisory Council from 18 to 13 members. States that initial appointments to the Council made after May 1, 2003, shall be made by the Secretary of Transportation (instead of by the President, with the advice and consent of the Senate). Requires the Secretary of Transportation to make all appointments (including initial appointments) of the Council member from among individuals who are the leaders of their respective unions of air traffic control system employees. (Currently the President is required to make the initial appointment.) Eliminates the five members appointed by the Secretary after consultation with specified congressional committees.

(Sec. 202) Directs the FAA Administrator to convert the Air Traffic Services Subcommittee into an Air Traffic Services Committee independent of the Council, and composed of the Administrator and four other members meeting specified qualifications. Prohibits the appointment of U.S. Government officers or employees to the Committee. Permits the FAA to give the Committee (as well as the Council) access to relevant documents and FAA staff. Prohibits specified conflicts-of-interest for Committee members. Prescribes requirements for personnel matters and travel expenses.

Authorizes appropriations to the Committee.

(Sec. 203) Revises the responsibilities of the FAA Chief Operating Officer (CPO), as delegated by the Administrator. Requires the CPO to oversee the FAA day-to-day operational functions for air traffic control (currently, to review FAA operational functions), including the management of cost-reimbursable contracts.

(Sec. 204) Requires the Secretary to set the Deputy Administrator's annual rate of basic pay, not to exceed the Administrator's annual rate.

Subtitle B: Miscellaneous - (Sec. 221) Requires the FAA Administrator to: (1) report to specified congressional committees on the overall air traffic controller staffing plan, including strategies to address anticipated retirement and replacement of air traffic controllers; and (2) 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.

(Sec. 222) Amends Federal aviation law to prohibit reprisals against contractor employees under the FAA acquisition management system for disclosing to a Member of Congress or an authorized official of the FAA or the Department of Justice information relating to a substantial violation of law related to a contract.

(Sec. 223) Directs the FAA Administrator to take appropriate actions to implement the recommendations contained in the General Accounting Office report 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.

(Sec. 224) Amends Federal aviation law regarding FAA Administrator's general procurement authority to repeal the authority to use non-competitive procurement procedures.

Requires the acquisition management system, at a minimum, to provide for the resolution of bid protests and related contract disputes, using consensual alternative dispute resolution techniques to the maximum extent practicable. Requires any bid protest or contract dispute that is not addressed or resolved through alternative dispute resolution to be adjudicated by the Administrator through Dispute Resolution Officers or Special Masters of the Federal Aviation Administration Office of Dispute Resolution for Acquisition, subject to judicial review.

Makes the FAA Administrator the final authority for carrying out all FAA functions, powers, and duties relating to the acquisition and maintenance of services.

(Sec. 225) Defines a small hub airport as a commercial service airport that has at least 0.05 percent but less than 0.25 percent of the revenue passenger boardings in the United States in the prior calendar year on an aircraft in service in air commerce, including 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.

Defines: (1) a nonhub airport as a commercial service airport that has less than 0.05 percent of such passenger boardings; (2) a medium hub airport as one that has at least 0.25 percent but less than 1.0 percent of such passenger boardings; and (3) a large b airport as one that has at least 1.0 percent of such passenger boardings.

(Sec. 226) Amends Federal civil service law to provide for coverage of air traffic controllers under the Civil Service Retirement System (CSRS) and the Federal Employees' Retirement System (FERS).

Prescribes a formula for computation of the annuity under FERS for certain air traffic controllers with at least five years of service.

Requires a deposit into the Civil Service Retirement and Disability Fund of certain amounts for service before the effective date of this subtitle in order for an air traffic controller to be eligible for immediate retirement.

(Sec. 227) Directs the FAA Administrator to transmit to specified congressional committees a plan a plan for the development and oversight of a system for certification of design organizations to certify compliance with the requirements and minimum Federal standards for the type certification of aircraft, aircraft engines, propellers, or appliances.

Authorizes the Administrator, beginning seven years after enactment of this subtitle, to issue a design organization certificate to a design organization to authorize it to certify compliance with such requirements and minimum standards.

(Sec. 228) Provides for judicial review of regulations or security directives of the Under Secretary of Transportation for Security, as well as (under existing law) any order of the Secretary of Transportation regarding airport development and noise or of the FAA Administrator regarding aviation duties and powers, at the petition of any person with a substantial interest in the regulation, security directive, or order.

(Sec. 229) Declares that the interim final rule and final rule, relating to overflight fees, issued by the Administrator on May 30, 2000, and August 13, 2001, respectively, including fees assessed between November 19, 2001, and April 8, 2003 (and certain others collected subsequently), to be 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.

Requires the FAA Administrator to defer collecting fees until: (1) reporting to Congress in response 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) consulting with users and other interested parties on the consistency of such fees with U.S. international obligations.

Title III: Environmental Process - Subtitle A: Aviation Development Streamlining - Aviation Streamlining Approval Process Act of 2003 - (Sec. 303) Directs the FAA Administrator to take action to encourage the construction of airport capacity enhancement projects at congested airports.

(Sec. 304) Directs the Secretary to 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.

Authorizes the Transportation Infrastructure Streamlining Task Force to monitor airport projects subject to the coordinated review process.

Authorizes the FAA Administrator to consider and commit to prescribing, in a project approval record of decision, 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.

Authorizes the FAA Administrator to accept funds from an airport sponsor to hire additional staff or obtain consultant services in order to facilitate the timely processing, review, and completion of environmental activities associated with an airport development project.

Authorizes appropriations.

(Sec. 306) Authorizes the Secretary to make airport noise compatibility grants for soundproofing and acquisition of certain residential buildings and properties to an airport operator of a congested airport and a local government unit to carry out a noise mitigation project in the area surrounding the airport if the project is included as a commitment in an FAA record of decision for an airport capacity enhancement project, even if that airport has not met Federal airport noise compatibility planning requirements.

(Sec. 307) Directs the Secretary to publish the final FAA Order 1050.1E, Environmental Impacts: Policies and Procedures by a certain deadline, and the revised Federal Aviation Administration Order 5050.4B, Airport Environmental Handbook, for public comment, within 180 days after that.

(Sec. 309) Applies the coordinated review process required under this subtitle to an airport capacity enhancement project at a congested airport whether or not the project is designated a high-priority transportation infrastructure project.

Subtitle B: Miscellaneous - (Sec. 321) Directs the Secretary to study and report to specified congressional committees on ways to reduce aircraft noise and emissions and to increase aircraft fuel efficiency. Authorizes appropriations.

(Sec. 322) Directs the FAA Administrator to study 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.

(Sec. 323) Amends Federal aviation law regarding overflights of national parks, especially by commercial air tour operations.

Directs the Secretary, by January 2005, to 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. Requires the Secretary to refer to a recognized center for environmental conflict resolution any dispute on specified related matters among interested parties (including outside groups) or government agencies cannot be resolved within a reasonable time frame and could delay finalizing the rulemaking.

(Sec. 324) Specifies a forecast period at least five years in the future as the period of estimated aircraft operations to be included by an airport operator on a noise exposure map.

Requires an airport operator to submit to the Secretary a revised noise exposure map showing any significant noise reduction over existing noncompatible uses a change in airport operation would make that is not reflected in either the existing conditions map or forecast map currently on file with the FAA.

(Sec. 325) Directs the Secretary to issue by April 1, 2005, final regulations to implement Chapter 4 noise standards, consistent with the recommendations adopted by the International Civil Aviation Organization.

(Sec. 326) Directs the Secretary to establish a research program related to reducing community exposure to civilian aircraft noise or emissions through grants or other authorized measures, including reimbursable agreements with other Federal agencies.

Requires the FAA Administrator to designate as a Center of Excellence for Noise and Emission Research any educational or research institution with existing facilities for developing and testing noise reduction engine technology that participates in the program.

(Sec. 327) Declares that nothing in this title shall be construed to: (1) 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 Illinois; or (2) preempt the authority of the Governor 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) Amends Federal aviation law to declare that, if an air carrier commences air transportation to an eligible place not receiving scheduled passenger air service as a result of the failure of the place to meet requirements contained in an appropriations Act, the air carrier shall not be subject to the requirements (hold-in requirements) that it continue to provide basic essential air service to the place for additional 30-day periods until another carrier begins to provide such service to the place if it ends, suspends, or reduces air transportation to such place below the level of basic essential air service.

(Sec. 402) Authorizes the Secretary, if air carriers are experiencing significantly increased costs in providing small community air service or air transportation, to increase the rates of compensation payable without regard to any agreement or requirement relating to the renegotiation of contracts or specified notice requirements. Authorizes a reversal of such an adjustment under certain circumstances. Defines significantly increased costs as a total unit cost increase (but not increases in individual unit costs) of ten percent or more (for a period of at least 2 consecutive months) in relation to the total unit cost reflected in the compensation rate.

(Sec. 403) Includes joint fares among the joint proposals for maximizing small community service or transportation to and from major destinations beyond the hub whose submission by two or more providing air carriers the Secretary is required to encourage.

(Sec. 404) Increases from $15 million to $77 million the additional appropriations authorized for each fiscal year to carry out the essential air service program. Earmarks up to $12 million of such addition funds per fiscal year for the marketing incentive program for communities and for State marketing assistance. Authorizes appropriations for the hiring and employment of four additional employees for the office responsible for carrying out the program.

(Sec. 405) Directs the Secretary to establish an alternate essential air service pilot program, which shall provide assistance directly to a local government unit with appropriate jurisdiction or a State where the eligible place is located, instead of to an air carrier. Specifies authorized uses of such assistance, including use of smaller equipment, provision of on-demand air-taxis and surface transportation, and purchase of a fractional share in an aircraft.

Requires the Secretary to establish a pilot program for up to ten eligible places or consortia of local government units under which an airport sponsor serving an eligible place may elect to forego any essential air service for which compensation is being provided for a ten-year period in exchange for a grant from the Secretary equal in value to twice the compensation paid for such service in the most recent 12-month period.

Requires the Secretary to make a grant to each airport sponsor participating in the program for use on any project that: (1) is eligible for airport development assistance; (2) is located on the airport property; or (3) will improve airport facilities in a way that would make them more usable for general aviation.

(Sec. 406) Directs the Secretary to establish a pilot program under which the Secretary may require air carriers providing small community air service for up to ten communities and major air carriers serving large hub airports 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.

(Sec. 407) Directs the Secretary to require a carrier that provides essential air service to an eligible place, and receives compensation for it, to report at least semiannually: (1) the percentage of flights to and from the place that arrive on time; and (2) such other information as the Secretary considers necessary to evaluate service provided to passengers traveling to and from such place.

(Sec. 408) Directs the Secretary to establish a pilot program under which up to ten designated essential air service communities (but only one per State) located in proximity to hub airports are required to assume ten percent of their essential air service subsidy costs for a four-year period. Requires such a community to be located within 100 miles by road of a hub airport, and not be located in a noncontiguous State.

(Sec. 409) Specifies as the most commonly used route between an eligible place and the nearest medium hub airport or large hub airport the measure of highway mileage to be used in reviewing, upon request, any action, during the two years before enactment of this Act, to eliminate (or tentatively eliminate) compensation for essential air service to such place, or terminate (or tentatively terminate) the place's compensation eligibility for such service. Requires the Secretary, within 60 days after receiving a review request, to: (1) determine whether the eligible place would have been subject to such an elimination or termination under specified law based on such a determination of highway mileage; and (2) issue a final order regarding eligibility for essential air service compensation. Terminates any such final order on September 30, 2007.

(Sec. 410) Directs the Secretary to establish a marketing incentive program for eligible places that receive subsidized essential air service under which an airport sponsor may receive a grant of up to $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. Specifies bonuses for 25-percent and 50-percent increases in usage as a result of such marketing plans.

(Sec. 411) Establishes a National Commission on Small Community Air Service to study and report to the President and Congress on: (1) the challenges faced by small communities in the United States with respect to retaining and enhancing their scheduled commercial air service; and (2) whether the existing Federal programs charged with helping small communities are adequate for them to retain and enhance their existing air service. Authorizes appropriations.

(Sec. 412) Amends Federal aviation law to convert the small community air service development pilot program to a permanent program.

Declares that 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 may apply, subsequent to such participation, to participate in the program in support of a different project.

Requires the Secretary to give priority to communities or consortia of communities where, among other things, the assistance will be used in a timely fashion.

Authorizes appropriations for FY 2004 through 2008.

Subtitle B: Miscellaneous - (Sec. 421) Directs the Secretary to publish data on incidents and complaints involving passenger and baggage security screening in a manner comparable to other consumer complaint and incident data. Authorizes the Secretary to request the Secretary of Homeland Security to report periodically on the number of security screening complaints received by the Department of Homeland Security (DHS).

(Sec. 422) Authorizes the Secretary to request that air carriers meet with the FAA Administrator to discuss flight reductions at severely congested airports to reduce overscheduling and flight delays during hours of peak operation. Requires the FAA Administrator, beforehand, to establish flight reduction targets for the meeting and notify the attending air carriers of them at least 48 hours before it takes place.

Authorizes an air carrier attending the meeting to make any offer to meet a flight reduction target to the Administrator rather than to another carrier.

(Sec. 423) Directs the FAA Administrator to establish a two-year collaborative decisionmaking pilot program involving two of the most capacity-constrained airports in the Nation with respect to capacity reduction events.

Authorizes the Administrator, upon a determination that a capacity reduction event exists, to authorize domestic and foreign air carriers operating at participating airport to communicate for up to 24 hours with each other concerning changes in their respective flight schedules in order to use air traffic capacity most effectively.

Authorizes the Secretary, unless the Attorney General objects, to exempt from the antitrust laws, solely for such purposes, an domestic or foreign air carrier's activities that are necessary to participate in the pilot program.

Requires the Administrator to determine whether the pilot program has facilitated more effective use of air traffic capacity and the Secretary to determine whether the program has had an adverse effect on airline competition or the availability of air services to communities.

Provides for an extension of the program for two additional years and seven additional airports.

(Sec. 424) Authorizes the Secretary to approve an airport development project grant application for an for a large hub airport or a medium hub airport only if assurances are made that the airport sponsor will inform the Secretary semiannually whether it has been unable to accommodate one or more air carrier requests for access to gates or other facilities.

(Sec. 425) Increases slot exemptions at Ronald Reagan Washington National Airport: (1) from 12 to 24 beyond-perimeter exemptions; and (2) from 12 to 20 within-perimeter exemptions. Repeals the limitation of airports within the perimeter established for civil aircraft operations to medium hub or smaller airports. Increases the number of allocations of within-perimeter exemptions.

Requires the Secretary to establish procedures to ensure that all requests for such exemptions are granted or denied within 90 days after the request is made.

(Sec. 426) Defines commuters, for purposes of aircraft operations at Ronald Reagan Washington National Airport, as aircraft operations using aircraft having a certificated maximum seating capacity of 76 or less.

(Sec. 427) Declares the sense of Congress that each U.S. air carrier should: (1) establish for all members of the Armed Forces on active duty reduced air fares comparable to the lowest airfare for ticketed flights; and (2) offer flexible terms allowing them to purchase, modify, or cancel tickets without time restrictions, fees, and penalties.

(Sec. 428) Amends the Aviation and Transportation Security Act to extend through 36 months after its enactment (on November 19, 2001) the requirement that an air carrier providing scheduled air transportation on a route honor tickets of passengers on a flight which another air carrier has suspended, interrupted, or discontinued by reason of insolvency or bankruptcy.

Title V: Aviation Safety - (Sec. 501) Prohibits the FAA Administrator from issuing a safety certificate to any person whose certificate is revoked for counterfeit or fraudulently represented aviation parts offenses.

(Sec. 502) Declares that an airport owner or operator in Alaska shall not be required to reduce the length of a runway or declare it to be less than the actual pavement length in order to meet FAA runway safety area standards.

Directs the Secretary to study and report to specified congressional committees on runways at airports in States other than Alaska to: (1) determine which airports are affected by FAA runway safety area standards; and (2) assess how operations at those airports would be affected if the airport owner or operator is required to reduce the runway length or declare it to be less than the actual pavement length in order to meet such standards.

(Sec. 503) Increases the maximum civil penalties for certain violations of Federal aviation law from $1,000 to $25,000 ($1,100 for an individual or small business). Increases to $10,000 the civil penalties for individuals or small businesses for certain other offenses related to: (1) the transportation of hazardous material; (2) the registration or recordation of an aircraft not used to provide air transportation; (3) the limitation on construction or establishment of landfills; (4) the safe disposal of life-limited aircraft parts; or (5) discrimination. Limits the civil penalty for individuals or small businesses, however, to: (1) $5,000 for violations of air service termination notice requirements; and (2) $2,500 per violation for unfair and deceptive practices and unfair methods of competition.

Increases the amounts in controversy of civil penalty collection actions over which U.S. district courts have exclusive jurisdiction.

(Sec. 504) Directs the FAA Administrator to ensure that Federal training standards for airframe and powerplant mechanics are updated and revised to include curriculum adjustments necessary to more accurately reflect current technology and maintenance practices.

(Sec. 505) Directs the FAA Administrator to arrange with the National Research Council to assess and report to specified congressional committees on the proposed FAA wake turbulence research and development program. Authorizes appropriations.

(Sec. 506) Directs the Comptroller General to study and report to specified congressional committees on the training of FAA aviation safety inspectors.

Declares 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.

Directs the FAA Administrator to arrange for the National Academy of Sciences to study and report to Congress on FAA assumptions and methods used to estimate staffing standards for FAA inspectors to ensure proper oversight over the aviation industry, including the designee program.

(Sec. 507) Directs the FAA Administrator to transmit to specified congressional committees a plan containing an implementation schedule for addressing problems with the air transportation oversight system identified in reports by the Comptroller General and the DOT Inspector General.

Title VI: Aviation Security - (Sec. 601) Amends Federal aviation law to direct the FAA Administrator to issue an order amending, modifying, suspending, or revoking any part of an aviation certificate if the Administrator is notified by the Under Secretary for Border and Transportation Security of DHS that the certificate holder poses, or is suspected of posing, a risk of air piracy or terrorism or a threat to airline or passenger safety. Prescribes requirements for review of such an order that adversely affects an individual U.S. citizen, including requirements for use at a hearing of an unclassified summary of classified evidence upon which the order was based.

(Sec. 602) Requires the FAA Administrator to report every 60 days to specified congressional committees an explanation of the need of any Air Defense Identification Zone (ADIZ) the Administrator establishes, until the ADIZ is rescinded. Defines an ADIZ as 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.

Requires such reports to describe any changes in procedures or requirements that could improve operational efficiency or minimize operational impacts of the ADIZ on pilots and controllers.

(Sec. 603) Amends Federal aviation law to revise requirements for an air carrier's training program to prepare flight and cabin crew members for potential threat conditions.

Directs the Under Secretary of Transportation for Security to: (1) monitor such programs and review them periodically to ensure that they are adequately preparing crew members for potential threat conditions; and (2) develop and provide a voluntary advanced self-defense training program for flight and cabin crew members, for which they shall neither be paid compensation nor charged a fee.

(Sec. 604) Directs the DHS Secretary to study report to specified congressional committees on 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.

(Sec. 605) Authorizes the DHS Under Secretary for Border and Transportation Security (BTS) to make grants to airport sponsors for projects to: (1) replace baggage conveyer systems related to aviation security; (2) reconfigure terminal baggage areas as needed to install explosive detection systems; (3) 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) make other airport security capital improvements.

Declares that the Federal share of project costs shall be 90 percent for a project at a medium or large hub airport and 95 percent at any other airport.

Establishes within DHS the Aviation Security Capital Fund, whose first $250 million deposit shall be derived from passenger security service fees received in each of FY 2004 through 2007. Requires Under Secretary to impose such fee so as to collect at least that amount in each of such fiscal years. Prescribes requirements for mandatory allocation of $125 million per fiscal year to large, medium, and small hub and nonhub airports. Authorizes the use of another $125 million for discretionary grants.

Authorizes the appropriations of $250 million for each of FY 2004 through 2007. Requires half of annual appropriations to go for mandatory and half for discretionary grants.

(Sec. 606) Directs the Under Secretary for BTS to implement an aviation security program for charter air carriers (except armed forces charters) with a maximum certificated takeoff weight of more than 12,500 pounds.

Requires the Secretary of Defense to 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.

(Sec. 607) Prohibits the Under Secretary for BTS from implementing, on other than a test basis, the computer assisted passenger prescreening system (CAPPS2) until the Under Secretary certifies to Congress 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, 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 it can make an accurate predictive assessment of those passengers who would constitute a security threat; (4) the DHS Secretary 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.

Requires the Comptroller General to report to specified congressional committees on the impact of CAPPS2 on such issues as well as on privacy and civil liberties, with any recommendations for practices, procedures, regulations, or legislation to eliminate or minimize adverse effect of CAPPS2 on privacy, discrimination, and other civil liberties.

(Sec. 608) Directs the DHS Secretary to report to specified congressional committees on the potential impact of CAPPS2 on the privacy and civil liberties of U.S. citizens.

(Sec. 609) Declares 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.

Amends Federal aviation law regarding the Federal flight deck officer program to extend its application to all air transportation, including all-cargo air transportation. (Currently, the program is limited to passenger air transportation.)

(Sec. 610) Amends the Transportation and Related Agencies Appropriation Act, 2003 to repeal the cap on the Transportation Security Administration (TSA) staffing level.

(Sec. 611) Directs the FAA Administrator to transmit to specified congressional committees a plan containing an implementation schedule to strengthen oversight of domestic and foreign repair stations and ensure that foreign repair stations certified by the Administrator are subject to an equivalent level of safety, oversight, and quality control as those located in the United States.

Amends Federal aviation law to direct the Under Secretary for BTS to: (1) complete a security review and audit of foreign repair stations certified by the FAA Administrator that work on air carrier aircraft and components; (2) require a foreign repair station to address security issues and vulnerabilities identified in a security audit; and (3) notify the Administrator that a deficiency was identified in such security audit. Requires the Administrator to give audit priority to foreign repair stations located in countries identified by the Government as posing the most significant security risks.

Requires the FAA Administrator to suspend the certification of the repair station until effective security measures are carried out, if, after a 90-day period following notification to the station of identified security issues and vulnerabilities, the Under Secretary determines that the foreign repair station does not maintain and carry out effective security measures. Requires immediate revocation of a certificate if the Under Secretary determines that a foreign repair station poses an immediate security risk. Requires the Under Secretary to establish procedures for appealing a certificate revocation.

Prohibits the FAA Administrator from certifying any foreign repair station until all currently required audits are completed for existing stations.

Requires the Under Secretary to report an explanation and an issuance schedule to specified congressional committees if final regulations to ensure the security of foreign and domestic aircraft repair stations are not issued before a specified deadline.

(Sec. 612) Amends Federal aviation law to revise waiting period requirements for flight training (including in-flight, simulator, or any other form of training) of aliens or any individuals specified by the Under Secretary of Transportation for Security. Limits the meaning of flight training to training received from an instructor in an aircraft or aircraft simulator, excluding recurrent training, ground training, or demonstration flights for marketing purposes.

Applies the requirements to any flight instructor, pilot school, aviation training center, or person subject to certain related regulations. Specifies information about the alien or other individual specified by the DHS Secretary (instead of the Under Secretary of Transportation for Security) that must be reported to the DHS Secretary (currently, the Attorney General). Reduces the waiting period from 45 days to 30.

Requires an expedited waiting period of only five days for an alien who: (1) holds an airman's certification of a foreign country recognized by a U.S. agency, including a military agency, that permits an individual to operate a multi-engine aircraft with a certificated takeoff weight of more than 12,500 pounds; (2) is employed by a certified foreign air carrier with an approved security program; (3) is an individual that has unescorted access to a designated secured area of an airport which serves an air carrier or foreign air carrier; or (4) is one of a class of individuals to whom, according to the Secretary, aviation training presents minimal risk to aviation or national security because of the aviation training the class of individuals already possesses.

Exempts from required procedures and processes a foreign military pilot endorsed by the Department of Defense for flight training in the United States and seeking training subject to waiting period requirements.

Authorizes the DHS Secretary to: (1) assess an investigation fee not to exceed $100 per individual (exclusive of the cost of transmitting fingerprints collected at overseas facilities) during FY 2003 and 2004; and (2) adjust the maximum amount of the fee to reflect the costs of such an investigation for FY 2005 and afterwards.

Requires U.S. Embassies and Consulates possessing appropriate fingerprint collection equipment and personnel certified to capture fingerprints to provide fingerprint services to aliens covered by these requirements if the DHS Secretary requires fingerprints in the administration of the investigations.

(Sec. 613) Requires the TSA Administrator to deploy Federal screeners at Kenai, Homer, and Valdez, Alaska, within 45 days after enactment of this Act.

Title VII: Aviation Research - (Sec. 701) Amends Federal aviation law to authorize appropriations through FY 2006 for various specified aviation research programs.

(Sec. 702) Directs the FAA Administrator to establish a Federal Aviation Administration Science and Technology Scholarship Program covering tuition, fees, and other authorized expenses of an institution of higher education, and designed to recruit and prepare students for careers in the FAA. Requires qualified individuals to agree, in exchange for a scholarship, to serve as full-time employees of the FAA for a period of 24 months for each academic year for which a scholarship is provided.

Authorizes appropriations.

(Sec. 703) Directs the Administrator of the National Aeronautics and Space Administration (NASA) to establish a National Aeronautics and Space Administration Science and Technology Scholarship Program covering tuition, fees, and other authorized expenses of an institution of higher education, and designed to recruit and prepare students for careers in NASA. Requires qualified individuals to agree, in exchange for a scholarship, to serve as full-time employees of NASA for a period of 24 months for each academic year for which a scholarship is provided.

Authorizes appropriations.

(Sec. 704) Directs the FAA Administrator to 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.

(Sec. 705) Directs the FAA Administrator to review and determine whether FAA standards used to determine the appropriate thickness for asphalt and concrete airfield pavements are in accordance with its standard 20-year-life requirement using the most up-to-date available information on the life of airfield pavements. Requires the Administrator to make appropriate adjustments to the standards if they are not in accordance with that requirement.

(Sec. 706) Requires the FAA to conduct research to: (1) promote the development of analytical tools to improve existing certification methods; and (2) reduce the overall costs for the certification of new products.

(Sec. 707) Amends Federal aviation law to direct the FAA Administrator to establish a program to utilize undergraduate and technical colleges, including Historically Black Colleges and Universities and Hispanic Serving Institutions, in 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.

(Sec. 708) Directs the FAA Administrator to develop a Center for Excellence focused on applied research and training on the durability and maintainability of advanced materials in transport airframe structures. Authorizes appropriations.

(Sec. 709) Directs the Secretary of Transportation to establish in the FAA the Next Generation Air Transportation System Joint Planning and Development Office to: (1) create an integrated plan for a Next Generation Air Transportation System; (2) oversee its research and development, and create a transition plan for its implementation; (3) coordinate aviation and aeronautics research programs, goals and priorities and research activities within the Federal Government with U.S. aviation and aeronautical firms, and development and utilization of new technologies; (4) facilitate technology transfer from research programs such as the NASA program and the Department of Defense Advanced Research Projects Agency program to Federal agencies with operational responsibilities, and to the private sector; and (5) review activities relating to noise, emissions, fuel consumption, and safety conducted by Federal agencies.

Specifies goals for the System.

Authorizes appropriations for FY 2004 through 2010.

(Sec. 710) Directs the Secretary to establish a senior policy committee to work with the Next Generation Air Transportation System Joint Planning and Development Office.

(Sec. 711) Directs the FAA Administrator to establish a rotorcraft initiative with the objective of developing, and demonstrating in a relevant environment, within ten years, technologies to enable rotorcraft with specified improvements.

(Sec. 712) Amends Federal aviation law to direct the FAA Administrator to establish a four-year pilot airport cooperative research program, with an independent governing board, to: (1) identify problems shared by airport operating agencies which can be solved through applied research but are not being adequately addressed by existing Federal research programs; and (2) fund research to address those problems.

Requires the Secretary to arrange with the National Academy of Sciences to provide staff support to the governing board.

Title VIII: Miscellaneous - (Sec. 802) Requires the FAA Administrator to report to Congress on the long-term goals and objectives of the Aviation Safety Reporting System and how it interrelates with other Federal Government safety reporting systems.

(Sec. 803) Requires the FAA Administrator to study and report to the appropriate congressional committees on 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.

(Sec. 804) Amends Federal aviation law to extend from FY 2004 through 2008 the Secretary's authority to approve an application by the Metropolitan Washington Airports Authority for an airport development project grant or to impose a passenger facility fee.

(Sec. 805) Amends Federal aviation law to revise the Secretary's mandate to collect and disseminate information on civil aeronautics including information on: (1) the origin and destination of passengers in interstate air transportation; and (2) the number of passengers traveling by air between any two points in interstate air transportation. Revises the prohibition against the Secretary's requiring an air carrier to provide information on the number of passengers or the amount of cargo on a specific flight if the flight and the flight number under which such flight operates are used solely for interstate air transportation and are not used for providing essential air transportation.

Declares instead that, if the Secretary requires air carriers to provide flight-specific information, the Secretary: (1) shall not disseminate fare information for a specific flight to the general public for a period of at least nine months following the date of the flight; and (2) shall give due consideration to and address confidentiality concerns of carriers, including competitive implications, in any rulemaking prior to adoption of a rule requiring the dissemination to the general public of any flight-specific fare.

(Sec. 806) Amends Federal aviation law to make an exception to the prohibition against requiring a contractor's certification, or a contract clause, in the case of a contract for the transportation of commercial items in order to implement a requirement related to Government-financed air transportation. Excludes from the meaning of commercial item any a contract for the transportation by air of passengers (thus allowing the requirement of certification or a contract clause.

(Sec. 807) Amends Federal aviation law to revise the definition of a citizen of the United States that is a corporation or association organized under the laws of the United States or a State, the District of Columbia, or a territory or possession of the United States. Requires such corporation or association, among other requirements, to be under the actual control of U.S. citizens.

(Sec. 808) Amends Federal aviation law relating to the requirements foreign aircraft permitted navigation in the United States must meet to receive permission also to take on for compensation, at a place in the United States, passengers or cargo destined for another place in the United States. Declares that 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 two 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.

(Sec. 809) Amends Federal aviation law to require domestic and foreign air carrier plans addressing the needs of families of passengers involved in major aircraft accidents to include an assurance that in the case of an accident: (1) 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 directly to the owner of the structure or other property about liability for any property damage, means for obtaining compensation, and advice to use the property insurer, not the air carrier, as the authoritative source for coverage and compensation information; and (2) in which the National Transportation Safety Board conducts a public hearing or comparable proceeding at a location more 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 flight, if that city is located in the United States.

Requries the updating of all current plans to conform to these requirements.

(Sec. 810) Amends Federal aviation law to direct the Secretary to require an air carrier using an aircraft to provide scheduled passenger air transportation to display on an information placard available to each passenger a notice naming the nation in which the aircraft was finally assembled.

(Sec. 811) Amends Federal aviation law to state that, 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 of that agreement. Authorizes such other person to 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.

(Sec. 812) Directs the Secretary of State and the FAA Administrator, as part of their bilateral negotiations with foreign nations and their civil aviation counterparts, to facilitate the reciprocal airworthiness certification of aviation products. Defines reciprocal airworthiness certification of aviation products as meaning 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) Amends Federal aviation law to repeal the Secretary's authority to develop and construct a civil supersonic aircraft.

Directs the FAA Administrator to 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) Amends Federal aviation law to prohibit any person from serving as a flight attendant aboard an air carrier's aircraft unless that person holds a certificate of demonstrated proficiency from the FAA Administrator. Allows current flight attendants to continue to serve aboard an aircraft until completion of the required recurrent or requalification training and subsequent certification now required.

Requires the Administrator to issue a certificate of demonstrated proficiency to an individual after notification by the air carrier that the individual has successfully completed all approved training requirements.

Prescribes specifications for such certificates.

Subjects all air carrier flight attendant training programs to the Administrator's approval.

(Sec. 815) Directs the FAA Administrator to 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." Requires the Administrator at a minimum to: (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; (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; (5) establish an air quality incident reporting system; and (6) report to Congress on the findings.

(Sec. 816) Directs the Secretary to report to Congress 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.

(Sec. 817) Authorizes the Secretary to 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 located within 15 miles of Reagan National Airport that were operating under security restrictions on the date of enactment of this Act and general aviation entities operating at those airports; (3) general aviation entities affected by implementation of Federal law concerning flight instructors, pilot schools, or aviation training centers relating to flight training waiting periods and background check investigations for aliens and certain others; (4) general aviation entities affected by certain restrictions under specified FAA Notices to Airmen or related Federal law, or both; and (5) sightseeing operations that were not authorized to resume in enhanced class B air space under a specified FAA notice to airmen.

Defines general aviation entity as any person (other than a scheduled air carrier or foreign air carrier) that: (1) operates nonmilitary aircraft 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; or (4) operates an airport, other than a primary airport, that is listed in the FAA-developed national plan of integrated airport systems or is normally open to the public, is located within the confines of enhanced class B airspace, and was closed as a result of an FAA order issued in the period between September 11, 2001, and January 1, 2002, and remained closed as a result of that order on January 1, 2002.

Includes in such term fixed based operators, flight schools, manufacturers of general aviation aircraft and products, persons engaged in nonscheduled aviation enterprises, and general aviation independent contractors.

Authorizes appropriations.

(Sec. 818) Directs the Secretary of Defense to coordinate with the Secretary and the Secretary of Commerce any necessary activities the Secretary of Defense conducts to enable the United States to host a major international air show in the United States.

(Sec. 819) Requires the Department of Commerce to report to specified congressional committees on market developments and government policies influencing the competitiveness of the U.S. jet transport aircraft industry that: (1) describes the structural characteristics of the U.S. and the European Union jet transport industries, and the markets for them; (2) examines the global market factors affecting the jet transport industries in the United States and the European Union; (3) reviews government regulations in the United States and the European Union that have altered the competitive landscape for jet transport aircraft; (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-à-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) Declares that 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.

(Sec. 821) Directs the Secretary of Homeland Security, subject to the availability of funds (other than amounts in the Aviation Trust Fund) provided for this purpose, to reimburse air carriers and airports for: (1) the screening of catering supplies; and (2) checking documents at security checkpoints.

(Sec. 822) Amends Federal aviation law to revise the requirement that regularly scheduled charter air transportation, in aircraft designed for more than nine passenger seats, fly to and from only airports with an airport operating certificate. Prohibits such a flight to or from and airport with such a certificate if it is a reliever airport, designated in the national plan of integrated airports, which is located within 20 nautical miles (22 statute miles) of three or more airports that each annually account for at least one percent of the total U.S. passenger enplanements and at least two of which are operated by the reliever airport's sponsor.

Authorizes the Secretary to waive these requirements if the public interest so requires.

(Sec. 823) Directs the Secretary of Homeland Security to develop and implement a security plan to permit general aviation aircraft to land and take off at Ronald Reagan Washington National Airport.

Requires the President, if the security plan is suspended for national security concerns, to report the reasons for the suspension to specified congressional committees with 30 days after the suspension.

(Sec. 824) Directs the Comptroller General to report to Congress 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 to: (1) compensate air carriers for the decrease in value of their aircraft after September 11, 2001; and (2) ensure that comparable air carriers receive comparable percentages of the maximum compensation payable under such Act.

(Sec. 825) Authorizes the 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) to impose restrictions (with reasonable exemptions for public health and safety) 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.

(Sec. 826) Directs the Comptroller General to analyze for Congress the financial condition of the U.S. airline industry in its efforts to reduce the costs and improve the earnings and profits and balances of each individual air carrier. Requires the report to recommend steps that the industry should take to become financially self-sufficient.

(Sec. 827) Directs the Secretary to permit, under specified Federal operating rules where common carriage is not involved, a company, located in the State of Alaska, to organize 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 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.

(Sec. 828) Directs the Secretary to report to Congress on all waivers during a specified two-year period of the preference for buying goods produced in the United States for certain authorized FAA expenditures, air navigation facilities, safety demonstration projects with respect to facilities, personnel, and research, certain airport improvement demonstration projects (except ground transportation demonstration projects), or certain projects authorized under the Airport and Airway Trust Fund.

(Sec. 829) Amends the Rivers and Harbors Appropriation Act of July 5, 1884 to allow 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 U.S. Constitution.

Title IX: Extension of Airport and Airway Trust Fund Expenditure Authority - (Sec. 901) Amends the Internal Revenue Code to: (1) extend the Airport and Airway Trust Fund expenditure authority through FY 2007; and (2) declare that, if an amount is paid during a calendar year for a domestic flight segment beginning in a later calendar year, then the rate of the domestic segment air transportation tax on such amount shall be the rate in effect for the calendar year in which such amount is paid.