[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 1682 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                S. 1682

To amend title 49, United States Code, to authorize management reforms 
    of the Federal Aviation Administration, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 1, 1999

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

_______________________________________________________________________

                                 A BILL


 
To amend title 49, United States Code, to authorize management reforms 
    of 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.

    This Act may be cited as the ``Air Traffic Management Improvement 
Act of 1999''.

SEC. 2. AMENDMENTS TO TITLE 49, UNITED STATES CODE.

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

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Federal Aviation Administration.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of the Department of Transportation.

SEC. 4. FINDINGS.

    The Congress makes the following findings:
            (1) The nation's air transportation system is projected to 
        grow by 3.4 percent per year over the next 12 years.
            (2) Passenger enplanements are expected to rise to more 
        than 1 billion by 2009, from the current level of 660 million.
            (3) The aviation industry is one of our Nation's critical 
        industries, providing a means of travel to people throughout 
        the world, and a means of moving cargo around the globe.
            (4) The ability of all sectors of American society, urban 
        and rural, to to access and to compete effectively in the new 
        and dynamic global economy requires the ability of the aviation 
        industry to serve all the Nation's communities effectively and 
        efficiently.
            (5) The Federal government's role is to promote a safe and 
        efficient national air transportation system through the 
        management of the air traffic control system and through 
        effective and sufficient investment in aviation infrastructure, 
        including the Nation's airports.
            (6) Numerous studies and reports, including the National 
        Civil Aviation Review Commission, have concluded that the 
        projected expansion of air service may be constrained by 
        gridlock in our Nation's airways, unless substantial management 
        reforms are initiated for the Federal Aviation Administration.
            (7) The Federal Aviation Administration is responsible for 
        safely and efficiently managing the National Airspace System 
        365 days a year, 24 hours a day.
            (8) The Federal Aviation Administration's ability to 
        efficiently manage the air traffic system in the United States 
        is restricted by antiquated air traffic control equipment.
            (9) The Congress has previously recognized that the 
        Administrator needs relief from the Federal government's 
        cumbersome personnel and procurement laws and regulations to 
        take advantage of emerging technologies and to hire and retain 
        effective managers.
            (10) The ability of the Administrator to achieve greater 
        efficiencies in the management of the air traffic control 
        system requires additional management reforms, such as the 
        ability to offer incentive pay for excellence in the employee 
        workforce.
            (11) The ability of the Administrator to effectively manage 
        finances is dependent in part on the Federal Aviation 
        Administration's ability to enter into long-term debt and lease 
        financing of facilities and equipment, which in turn are 
        dependent on sustained sound audits and implementation of a 
        cost management program.
            (12) The Administrator should use the full authority of the 
        Federal Aviation Administration to make organizational changes 
        to improve the efficiency of the air traffic control system, 
        without compromising the Federal Aviation Administration's 
        primary mission of protecting the safety of the travelling 
        public.

SEC. 5. AIR TRAFFIC CONTROL SYSTEM DEFINED.

    Section 40102(a) is amended--
             (1) by redesignating paragraphs (5) through (41) as 
        paragraphs (6) through (42), respectively; and
             (2) by inserting after paragraph (4) the following:
            ``(5) `air traffic control system' means the combination of 
        elements used to safely and efficiently monitor, direct, 
        control, and guide aircraft in the United States and United 
        States-assigned airspace, including--
                    ``(A) allocated electromagnetic spectrum and 
                physical, real, personal, and intellectual property 
                assets making up facilities, equipment, and systems 
                employed to detect, track, and guide aircraft movement;
                    ``(B) laws, regulations, orders, directives, 
                agreements, and licenses;
                    ``(C) published procedures that explain required 
                actions, activities, and techniques used to ensure 
                adequate aircraft separation; and
                    ``(D) trained personnel with specific technical 
                capabilities to satisfy the operational, engineering, 
                management, and planning requirements for air traffic 
                control.''.

SEC. 6. CHIEF OPERATING OFFICER FOR AIR TRAFFIC SERVICES.

    (a) Section 106 is amended by adding at the end the following:
    `(r) Chief Operating Officer.--
            ``(1) In general.--
                    ``(A) Appointment.--There shall be a Chief 
                Operating Officer for the air traffic control system to 
                be appointed by the Administrator, after consultation 
                with the Management Advisory Council. The Chief 
                Operating Officer shall report directly to the 
                Administrator and shall be subject to the authority of 
                the Administrator.
                    ``(B) Qualifications.--The Chief Operating Officer 
                shall have a demonstrated ability in management and 
                knowledge of or experience in aviation.
                    ``(C) Term.--The Chief Operating Officer shall be 
                appointed for a term of 5 years.
                    ``(D) Removal.--The Chief Operating Officer shall 
                serve at the pleasure of the Administrator, except that 
                the Administrator shall make every effort to ensure 
                stability and continuity in the leadership of the air 
                traffic control system.
                    ``(E) Compensation.--
                            ``(i) The Chief Operating Officer shall be 
                        paid at an annual rate of basic pay not to 
                        exceed that of the Administrator, including any 
                        applicable locality-based payment. This basic 
                        rate of pay shall subject the chief operating 
                        officer to the post-employment provisions of 
                        section 207 of title 18 as if this position 
                        were described in section 207(c)(2)(A)(i) of 
                        that title.
                            ``(ii) In addition to the annual rate of 
                        basic pay authorized by paragraph (1) of this 
                        subsection, the Chief Operating Officer may 
                        receive a bonus not to exceed 50 percent of the 
                        annual rate of basic pay, based upon the 
                        Administrator's evaluation of the Chief 
                        Operating Officer's performance in relation to 
                        the performance goals set forth in the 
                        performance agreement described in subsection 
                        (b) of this section. A bonus may not cause the 
                        Chief Operating Officer's total aggregate 
                        compensation in a calendar year to equal or 
                        exceed the amount of the President's salary 
                        under section 102 of title 3, United States 
                        Code.
            ``(2) Annual performance agreement.--The Administrator and 
        the Chief Operating Officer shall enter into an annual 
        performance agreement that sets forth measurable organization 
        and individual goals for the Chief Operating Officer in key 
        operational areas. The agreement shall be subject to review and 
        renegotiation on an annual basis.
            ``(3) Annual performance report.--The Chief Operating 
        Officer shall prepare and submit to the Secretary of 
        Transportation and Congress an annual management report 
        containing such information as may be prescribed by the 
        Secretary.'.
            ``(4) Responsibilities.--The Administrator may delegate to 
        the Chief Operating Officer, or any other authority within the 
        Federal Aviation Administration responsibilities, including, 
        but not limited to the following:
                    ``(A) Strategic plans.--To develop a strategic plan 
                of the Federal Aviation Administration for the air 
                traffic control system, including the establishment 
                of--
                            ``(i) a mission and objectives;
                            ``(ii) standards of performance relative to 
                        such mission and objectives, including safety, 
                        efficiency, and productivity; and
                            ``(iii) annual and long-range strategic 
                        plans.
                            ``(iv) methods of the Federal Aviation 
                        Administration to accelerate air traffic 
                        control modernization and improvements in 
                        aviation safety related to air traffic control.
                    ``(B) Operations.--To review the operational 
                functions of the Federal Aviation Administration, 
                including--
                            ``(i) modernization of the air traffic 
                        control system;
                            ``(ii) increasing productivity or 
                        implementing cost-saving measures; and
                            ``(iii) training and education.
                    ``(C) Budget.--To--
                            ``(i) develop a budget request of the 
                        Federal Aviation Administration related to the 
                        air traffic control system prepared by the 
                        Administrator;
                            `(ii) submit such budget request to the 
                        Administrator and the Secretary of 
                        Transportation; and
                            ``(iii) ensure that the budget request 
                        supports the annual and long-range strategic 
                        plans developed under paragraph (4)(A) of this 
                        subsection.
            ``(5) Budget submission.--The Secretary shall submit the 
        budget request prepared under paragraph (4)(D) of this 
        subsection for any fiscal year to the President who shall 
        submit such request, without revision, to the Committees on 
        Transportation and Infrastructure and Appropriations of the 
        House of Representatives and the Committees on Commerce, 
        Science, and Transportation and Appropriations of the Senate, 
        together with the President's annual budget request for the 
        Federal Aviation Administration for such fiscal year.''.

SEC. 7. FEDERAL AVIATION MANAGEMENT ADVISORY COUNCIL.

    (a) Membership.--Section 106(p)(2)(C) is amended to read as 
follows:
                    ``(C) 13 members representing aviation interests, 
                appointed by--
                            (i) in the case of initial appointments to 
                        the Council, the President by and with the 
                        advice and consent of the Senate; and
                            ``(ii) in the case of subsequent 
                        appointments to the Council, the Secretary of 
                        Transportation.''.
    (b) Terms of Members.--Section 106(p)(6)(A)(i) is amended by 
striking ``by the President''.
    (c) Air Traffic Services Subcommittee.--Section 106(p)(6) is 
amended by adding at the end thereof the following:
                    ``(E) Air traffic services subcommittee.--The 
                Chairman of the Management Advisory Council shall 
                constitute an Air Traffic Services Subcommittee to 
                provide comments, recommend modifications, and provide 
                dissenting views to the Administrator on the 
                performance of air traffic services, including--
                            ``(i) the performance of the Chief 
                        Operating Officer and other senior managers 
                        within the air traffic organization of the 
                        Federal Aviation Administration;
                            ``(ii) long-range and strategic plans for 
                        air traffic services;
                            ``(iii) review the Administrator's 
                        selection, evaluation, and compensation of 
                        senior executives of the Federal Aviation 
                        Administration who have program management 
                        responsibility over significant functions of 
                        the air traffic control system;
                            ``(iv) review and make recommendations to 
                        the Administrator's plans for any major 
                        reorganization of the Federal Aviation 
                        Administration that would effect the management 
                        of the air traffic control system;
                            ``(v) review, and make recommendations the 
                        Administrator's cost allocation system and 
                        financial management structure and technologies 
                        to help ensure efficient and cost-effective air 
                        traffic control operation.
                            ``(vi) review the performance and 
                        cooperation of managers responsible for major 
                        acquisition projects, including the ability of 
                        the managers to meet schedule and budget 
                        targets; and
                            ``(vii) other significant actions that the 
                        Subcommittee considers appropriate and that are 
                        consistent with the implementation of this 
                        Act.''.

SEC. 8. COMPENSATION OF THE ADMINISTRATOR.

    Section 106(b) is amended--
            (1) by inserting ``(1)'' before ``The''; and
            (2) by adding at the end the following:
            ``(2) In addition to the annual rate of pay authorized for 
        the Administrator, the Administrator may receive a bonus not to 
        exceed 50 percent of the annual rate of basic pay, based upon 
        the Secretary's evaluation of the Administrator's performance 
        in relation to the performance goals set forth in a performance 
        agreement. A bonus may not cause the Administrator's total 
        aggregate compensation in a calendar year to equal or exceed 
        the amount of the President's salary under section 102 of title 
        3, United States Code.''.

SEC. 9. NATIONAL AIRSPACE REDESIGN.

    (a) Findings Relating to the National Airspace.--The Congress makes 
the following additional findings:
            (1) The National airspace, comprising more than 29 million 
        square miles, handles more than 55,000 flights per day.
            (2) Almost 2,000,000 passengers per day traverse the United 
        States through 20 major en route centers including more than 
        700 different sectors.
            (3) Redesign and review of the National airspace may 
        produce benefits for the travelling public by increasing the 
        efficiency and capacity of the air traffic control system and 
        reducing delays.
            (4) Redesign of the National airspace should be a high 
        priority for the Federal Aviation Administration and the air 
        transportation industry.
    (b) Redesign Report.--The Administrator, with advice from the 
aviation industry and other interested parties, shall conduct a 
comprehensive redesign of the national airspace system and shall submit 
a report to the Committee on Commerce, Science, and Transportation of 
the Senate and to the Committee on Transportation and Infrastructure of 
the House on the Administrator's comprehensive national airspace 
redesign. The report shall include projected milestones for completion 
of the redesign and shall also include a date for completion. The 
report must be submitted to the Congress no later than December 31, 
2000. There are authorized to be appropriated to the Administrator to 
carry out this section $12,000,000 for fiscal years 2000, 2001, and 
2002.

SEC. 10. FAA COSTS AND ALLOCATIONS SYSTEM MANAGEMENT.

    (a) Report on the Cost Allocation System.--No later than July 9, 
2000, the Administrator shall submit a report to the Committee on 
Commerce, Science, and Transportation of the Senate and the Committee 
on Transportation and Infrastructure of the House on the cost 
allocation system currently under development by the Federal Aviation 
Administration. The report shall include a specific date for completion 
and implementation of the cost allocation system throughout the agency 
and shall also include the timetable and plan for the implementation of 
a cost management system.
    (b) Independent Assessment.--
            (1) In general.--The Inspector General of the Department of 
        Transportation shall conduct the assessments described in this 
        subsection. To conduct the assessments, the Inspector General 
        may use the staff and resources of the Inspector General or 
        contract with one or more independent entities.
            (2) Assessment of adequacy and accuracy of federal aviation 
        administration cost data and attributions.--
                    (A) In general.--The Inspector General shall 
                conduct an assessment to ensure that the method for 
                calculating the overall costs of the Federal Aviation 
                Administration and attributing such costs to specific 
                users is appropriate, reasonable, and understandable to 
                the users.
                    (B) Components.--In conducting the assessment under 
                this paragraph, the Inspector General shall assess the 
                Federal Aviation Administration's definition of the 
                services to which the Federal Aviation Administration 
                ultimately attributes its costs.
            (3) Cost effectiveness.--
                    (A) In general.--The Inspector General shall assess 
                the progress of the Federal Aviation Administration in 
                cost and performance management, including use of 
                internal and external benchmarking in improving the 
                performance and productivity of the Federal Aviation 
                Administration.
                    (B) Annual reports.--Not later than December 31, 
                2000, the Inspector General shall transmit to Congress 
                an updated report containing the results of the 
                assessment conducted under this paragraph.
                    (C) Information to be included in federal aviation 
                administration financial report.--The Administrator 
                shall include in the annual financial report of the 
                Federal Aviation Administration information on the 
                performance of the Administration sufficient to permit 
                users and others to make an informed evaluation of the 
                progress of the Administration in increasing 
                productivity.

SEC. 11. AIR TRAFFIC MODERNIZATION PILOT PROGRAM.

    (a) In General.--Chapter 445 is amended by adding at the end 
thereof the following:
``Sec.  44516. Air traffic modernization joint venture pilot program
    ``(a) Purpose.--It is the purpose of this section to improve 
aviation safety and enhance mobility of the nation's air transportation 
system by facilitating the use of joint ventures and innovative 
financing, on a pilot program basis, between the Federal Aviation 
Administration and industry, to accelerate investment in critical air 
traffic control facilities and equipment.
    ``(b) Definitions.--As used in this section:
            ``(1) Association.--The term `Association' means the Air 
        Traffic Modernization Association established by this section.
            ``(2) Panel.--The term `panel' means the executive panel of 
        the Air Traffic Modernization Association.
            ``(3) Obligor.--The term `obligor' means a public airport, 
        an air carrier or foreign air carrier, or a consortium 
        consisting of 2 or more of such entities.
            ``(4) Eligible project.--The term `eligible project' means 
        a project relating to the nation's air traffic control system 
        that promotes safety, efficiency or mobility, and is included 
        in the Airway Capital Investment Plan required by section 
        44502, including--
                    ``(A) airport-specific air traffic facilities and 
                equipment, including local area augmentation systems, 
                instrument landings systems, weather and wind shear 
                detection equipment, lighting improvements and control 
                towers;
                    ``(B) automation tools to effect improvements in 
                airport capacity, including passive final approach 
                spacing tools and traffic management advisory 
                equipment; and
                    ``(C) facilities and equipment that enhance 
                airspace control procedures, including consolidation of 
                terminal radar control facilities and equipment, or 
                assist in en route surveillance, including oceanic and 
                off-shore flight tracking.
            ``(5) Substantial completion.--The term `substantial 
        completion' means the date upon which a project becomes 
        available for service.
    ``(c) Air Traffic Modernization Association.--
            (1) In general.--There may be established in the District 
        of Columbia a private, not for profit corporation, which shall 
        be known as the Air Traffic Modernization Association, for the 
        purpose of providing assistance to obligors through arranging 
        lease and debt financing of eligible projects.
            ``(2) Non-federal entity.--The Association shall not be an 
        agency, instrumentality or establishment of the United States 
        Government and shall not be a `wholly-owned Government 
        controlled corporation' as defined in section 9101 of title 31, 
        United States Code. No action under section 1491 of title 28, 
        United States Code, shall be allowable against the United 
        States based on the actions of the Association.
            ``(3) Executive panel.--
                    ``(A) The Association shall be under the direction 
                of an executive panel made up of 3 members, as follows:
                            ``(i) 1 member shall be an employee of the 
                        Federal Aviation Administration to be appointed 
                        by the Administrator;
                            ``(ii) 1 member shall be a representative 
                        of commercial air carriers, to be appointed by 
                        the Management Advisory Council; and
                            ``(iii) 1 member shall be a representative 
                        of operators of primary airports, to be 
                        appointed by the Management Advisory Council.
                    ``(B) The panel shall elect from among its members 
                a chairman who shall serve for a term of 1 year and 
                shall adopt such bylaws, policies, and administrative 
                provisions as are necessary to the functioning of the 
                Association.
    ``(4) Powers, duties and limitations.--Consistent with sound 
business techniques and provisions of this chapter, the Association is 
authorized--
                    ``(A) to borrow funds and enter into lease 
                arrangements as lessee with other parties relating to 
                the financing of eligible projects, provided that any 
                public debt issuance shall be rated investment grade by 
                a nationally recognized statistical rating 
                organization;
                    ``(B) to lend funds and enter into lease 
                arrangements as lessor with obligors, but--
                            ``(i) the term of financing offered by the 
                        Association shall not exceed the useful life of 
                        the eligible project being financed, as 
                        estimated by the Administrator; and
                            ``(ii) the aggregate amount of combined 
                        debt and lease financing provided under this 
                        subsection for air traffic control facilities 
                        and equipment--
                                    ``(I) may not exceed $500,000,000 
                                per fiscal year for fiscal years 2000, 
                                2001, and 2002;
                                    ``(II) shall be used for not more 
                                than 10 projects; and
                                    ``(III) may not provide funding in 
                                excess of $50,000,000 for any single 
                                project; and
                            ``(C) to exercise all other powers that are 
                        necessary and proper to carry out the purposes 
                        of this section.
            ``(5) Project selection criteria.--In selecting eligible 
        projects from applicants to be funded under this section, the 
        Association shall consider the following criteria:
                    ``(A) The eligible project's contribution to the 
                national air transportation system, as outlined in the 
                Federal Aviation Administration's modernization plan 
                for alleviating congestion, enhancing mobility, and 
                improving safety.
                    ``(B) The credit-worthiness of the revenue stream 
                pledged by the obligor.
                    ``(C) The extent to which assistance by the 
                Association will enable the obligor to accelerate the 
                date of substantial completion of the project.
                    ``(D) The extent of economic benefit to be derived 
                within the aviation industry, including both public and 
                private sectors.
    ``(d) Authority To Enter Into Joint Venture.--
            (1) In general.--Subject to the conditions set forth in 
        this section, the Administrator of the Federal Aviation 
        Administration is authorized to enter into a joint venture, on 
        a pilot program basis, with Federal and non-Federal entities to 
        establish the Air Traffic Modernization Association described 
        in subsection (c) for the purpose of acquiring, procuring or 
        utilizing of air traffic facilities and equipment in accordance 
        with the Airway Capital Investment Plan.
            ``(2) Cost sharing.--The Administrator is authorized to 
        make payments to the Association from amounts available under 
        section 4801(a) of this title, provided that the agency's share 
        of an annual payment for a lease or other financing agreement 
        does not exceed the direct or imputed interest portion of each 
        annual payment for an eligible project. The share of the annual 
        payment to be made by an obligor to the lease or other 
        financing agreement shall be in sufficient amount to amortize 
        the asset cost. If the obligor is an airport sponsor, the 
        sponsor may use revenue from a passenger facility fee, provided 
        that such revenue does not exceed 25 cents per enplaned 
        passenger per year.
            ``(3) Project specifications.--The Administrator shall have 
        the sole authority to approve the specifications, staffing 
        requirements, and operating and maintenance plan for each 
        eligible project, taking into consideration the recommendations 
        of the Air Traffic Services Subcommittee of the Management 
        Advisory Council.
    ``(e) Incentives for Participation.--An airport sponsor that enters 
into a lease or financial arrangement financed by the Air Traffic 
Modernization Association may use its share of the annual payment as a 
credit toward the non-Federal matching share requirement for any funds 
made available to the sponsor for airport development projects under 
chapter 471 of this title.
    ``(f) United States Not Obligated.--The contribution of Federal 
funds to the Association pursuant to subsection (d) of this section 
shall not be construed as a commitment, guarantee, or obligation on the 
part of the United States to any third party, nor shall any third party 
have any right against the United States by virtue of the contribution. 
The obligations of the Association do not constitute any commitment, 
guarantee or obligation of the United States.
    ``(g) Report to Congress.--Not later than 3 years after 
establishment of the Association, the Administrator shall provide a 
comprehensive and detailed report to the Senate Committee on Commerce, 
Science, and Transportation and the House Committee on Transportation 
and Infrastructure on the Association's activities including--
            ``(1) an assessment of the Association's effectiveness in 
        accelerating the modernization of the air traffic control 
        system;
            ``(2) a full description of the projects financed by the 
        Association and an evaluation of the benefits to the aviation 
        community and general public of such investment; and
            ``(3) recommendations as to whether this pilot program 
        should be expanded or other strategies should be pursued to 
        improve the safety and efficiency of the nation's air 
        transportation system.
    ``(h) Authorization.--Not more than the following amounts may be 
appropriated to the Administrator from amounts made available under 
section 4801(a) of this title for the agency's share of the 
organizational and administrative costs for the Air Traffic 
Modernization Association:
            ``(1) $500,000 for fiscal year 2000;
            ``(2) $500,000 for fiscal year 2001; and
            ``(3) $500,000 for fiscal year 2002.
    ``(i) Relationship to Other Authorities.--Nothing in this section 
is intended to limit or diminish existing authorities of the 
Administrator to acquire, establish, improve, operate, and maintain air 
navigation facilities and equipment.''.
    (b) Conforming Amendments.--
            (1) Section 40117(b)(1) is amended by striking 
        ``controls.'' and inserting ``controls, or to finance an 
        eligible project through the Air Traffic Modernization 
        Association in accordance with section 44516 of this title.''.
            (2) The analysis for chapter 445 is amended by adding at 
        the end the following:

    ``44516. Air traffic modernization pilot program.''.

SEC. 12. EMERGENCY AUTHORIZATION FOR AIR NAVIGATION FACILITIES AND 
              EQUIPMENT.

    Section 48101(a) is amended--
            (1) by striking ``a total of the following amounts'' and 
        inserting $100,000,000 for fiscal year 2000 to fund critically 
        needed, and already developed, air traffic control equipment 
        that can be efficiently installed into the National airspace to 
        more safely and efficiently move traffic''; and
            (2) striking ``title:'' and all that follows and inserting 
        ``title.''.
                                 <all>