[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 304 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                 S. 304

 To improve air transportation service available to small communities.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 25, 1999

   Mr. Frist introduced the following bill; which was read twice and 
   referred to the Committee on Commerce, Science, and Transportation

_______________________________________________________________________

                                 A BILL


 
 To improve air transportation service available to small communities.

    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 ``Small Communities Air Service Act of 
1999''.

SEC. 2. SLOT EXEMPTIONS FOR NONSTOP REGIONAL JET SERVICE.

    (a) In General.--Subchapter I of chapter 417 of title 49, United 
States Code, is amended by adding at the end thereof the following:
``Sec. 41716. Slot exemptions for nonstop regional jet service
    ``(a) In General.--Within 90 days after receiving an joint 
application from an air carrier and a community primarily served by a 
small hub airport or a nonhub airport (as such terms are defined in 
section 41731(a) (3) and (4)), respectively, for an exemption to 
provide nonstop regional jet air service between--
            ``(1) that small hub airport or nonhub airport; and
            ``(2) a high density airport, the Secretary of 
        Transportation shall grant the exemption.
    ``(b) Application May Be Denied for Safety or Environmental 
Reasons.--Notwithstanding subsection (a), the Secretary shall not grant 
an exemption requested under subsection (a) if--
            ``(1) granting the exemption would not be in accordance 
        with established principles of safety; or
            ``(2) the exemption would violate the National 
        Environmental Policy Act of 1969 (42 U.S.C. 4332).
    ``(c) Conditions.--The Secretary may grant an exemption to an air 
carrier under subsection (a)--
            ``(1) for a period of not less than 12 months;
            ``(2) for a minimum of 2 daily roundtrip flights; and
            ``(3) for a maximum of 4 daily roundtrip flights.
    ``(d) Forefeiture for Misuse.--Any exemption granted under 
subsection (a) shall be terminated immediately by the Secretary if the 
air carrier to which it was granted uses the slot for any purpose other 
than the purpose for which it was granted or in violation of the 
conditions under which it was granted.
    ``(e) Priority to New Entrants and Limited Incumbent Carriers.--
            ``(1) In general.--In granting slot exemptions under this 
        section the Secretary shall give priority consideration to an 
        application from an air carrier that, as of July 1, 1998, 
        operated or held fewer than 20 slots or slot exemptions at the 
        high density airport for which it filed an exemption 
        application.
            ``(2) Limitation.--No priority may be given under paragraph 
        (1) to an air carrier that, at the time of application, 
        operates or holds 20 or more slots and slot exemptions at the 
        airport for which the exemption application is filed.
            ``(3) Affiliated carriers.--The Secretary shall treat all 
        commuter air carriers that have cooperative agreements 
        including code-share agreements, with other air carriers 
        equally for determining eligibility for exemptions under this 
section regardless of the form of the corporate relationship between 
the commuter air carrier and the other air carrier.
    ``(f) Stage 3 Aircraft Required.-- An exemption may not be granted 
under this section with respect to any aircraft that is not a Stage 3 
aircraft (as defined by the Secretary).
    ``(g) Regional Jet Defined.--In this section, the term `regional 
jet' means a passenger, turbofan-powered aircraft carrying not fewer 
than 30 and not more than 50 passengers.
    ``(h) Preemption.--If the provisions of this section conflict with 
any other provision of law or regulation prescribed there under which a 
limitation is imposed on the number of slots available at any airport, 
then the provisions of this section shall take precedence.''.
    (b) Conforming Amendments.--
            (1) Section 40102 is amendment by inserting after paragraph 
        (28) the following:
            ``(28A) Limited incumbent air carrier.--The term `limited 
        incumbent air carrier' has the meaning given that term in 
        subpart S of part 93 of title 14, Code of Federal Regulations, 
        except that `20' shall be substituted for `12' in sections 
        93.213(a)(5), 93.223(c)(32), and 93.226(h) as such sections 
        were in effect on August 1, 1998.''.
            (2) The chapter analysis for chapter 417 is amended by 
        striking the item relating to section 41716 and inserting the 
        following:

``41716. Slot exemptions for nonstop regional jet services.''.

SEC. 3. REGIONAL AIR SERVICE INCENTIVE OPTIONS.

    (a) Purpose.--The purpose of this section is to provide the 
Congress with an analysis of means to improve service by jet aircraft 
to underserved markets by authorizing a review of different programs of 
Federal financial assistance, including loan guarantees like those that 
would have been provided for by section 2 of S. 1353, 105th Congress, 
as introduced, to commuter air carriers that would purchase regional 
jet aircraft for use in serving those markets.
    (b) Study.--The Secretary of Transportation shall study the 
efficacy of a program of Federal loan guarantees for the purchase of 
regional jets by commuter air carriers. The Secretary shall include in 
the study a review of options for funding, including alternatives to 
Federal funding. In the study, the Secretary shall analyze--
            (1) the need for such a program;
            (2) its potential benefit to small communities;
            (3) the trade implications of such a program;
            (4) market implications of such a program for the sale of 
        regional jets;
            (5) the types of markets that would benefit the most from 
        such a program;
            (6) the competitive implications of such a program; and
            (7) the cost of such a program.
    (c) Report--The Secretary shall submit a report of the results of 
the study to the Senate Committee on Commerce, Science, and 
Transportation and the House of Representatives Committee on 
Transportation and Infrastructure not later than 24 months after the 
date of enactment of this Act.

SEC. 4. AIRPORT SECURITY PROGRAM.

    (a) In General.--Subchapter I of chapter 471 of title 49, United 
States Code, is amended by adding at the end thereof the following new 
section:
``Sec. 47135. Airport security program
    ``(a) General Authority.--To improve security at public airports in 
the United States, the Secretary of Transportation shall carry out at 
least 1 project to test and evaluate innovative airport security 
systems and related technology.
    ``(b) Priority.--In carrying out this section, the Secretary shall 
give the highest priority to a request from an eligible sponsor for a 
grant to undertake a project that--
            ``(1) evaluates and tests the benefits of innovative 
        airport security systems or related technology, including 
        explosives detection systems, for the purpose of improving 
        airport and aircraft physical security and access control; and
            ``(2) provides testing and evaluation of airport security 
        systems and technology in an operational, test bed environment.
    ``(c) Matching Share.--Notwithstanding section 47109, the United 
States Government's share of allowable project costs for a project 
under this section is 100 percent.
    ``(d) Terms and Conditions.--The Secretary may establish such terms 
and conditions as the Secretary determines appropriate for carrying out 
a project under this section, including terms and conditions relating 
to the form and content of a proposal for a project, project assurance, 
and schedule of payments.
    ``(e) Eligible Sponsor Defined.--In this section, the term 
`eligible sponsor' means a nonprofit corporation composed of a 
consortium of public and private persons, including a sponsor of a 
primary airport, with the necessary engineering and technical expertise 
to successfully conduct the testing and evaluation of airport and 
aircraft related security systems.
    ``(f) Authorization of Appropriations.--Of the amounts made 
available to the Secretary under section 47115 in a fiscal year, the 
Secretary shall make available not less than $5,000,000 for the purpose 
of carrying out this section.''.
    (b) Conforming Amendment.--The chapter analysis for such subchapter 
is amended by inserting after the item relating to section 47134 the 
following:

``47135. Airport security program.''.

SEC. 5 CONTRACT TOWER PROGRAM.

    There are authorized to be appropriated to the Secretary of 
Transportation such sums as may be necessary to carry out the Federal 
Contract Tower Program under title 49, United States Code.

SEC. 6. REPORT ON EFFORTS TO IMPLEMENT CAPACITY ENHANCEMENTS.

    Within 9 months after the date of enactment of this Act, the 
Secretary of Transportation shall report to the Committee on Commerce, 
Science, and Transportation of the Senate and the Committee on 
Transportation and Infrastructure of the House of Representatives on 
efforts by the Federal Aviation Administration to implement capacity 
enhancements and improvements, such as precision runway monitoring 
systems, and the time frame for implementation of such enhancements and 
improvements.

SEC. 7. COMMUNITY-CARRIER AIR SERVICE PROGRAM.

    (a) In General.--Subchapter II of chapter 417 of title 49, United 
States Code, is amended by adding at the end thereof the following:
``Sec. 41743. Air service program for small communities
    ``(a) Communities Program.--Under advisory guidelines prescribed by 
the Secretary of Transportation, a small community or a consortia of 
small communities or a State may develop an assessment of its air 
service requirements and submit the assessment and service proposal to 
the Secretary.
    ``(b) Selection of Participants.--In selecting community programs 
for participation in the communities program under subsection (a), the 
Secretary shall apply criteria, including geographical diversity and 
the presentation of unique circumstances, that will demonstrate the 
feasibility of the program. For purposes of this subsection, the 
application of geographical diversity criteria means criteria that--
            ``(1) will promote the development of a national air 
        transportation system; and
            ``(2) will involve the participation of communities in all 
        regions of the country.
    ``(c) Carriers Program.--The Secretary shall invite part 121 air 
carriers and regional/commuter carriers (as such terms are defined in 
section 41715(d) of this title) to offer service proposals in response 
to, or in conjunction with, community aircraft service assessments 
submitted to the office under subsection (a). A service proposal under 
this paragraph shall include--
            ``(1) an assessment of potential daily passenger traffic, 
        revenues, and costs necessary for the carrier to offer the 
        service;
            ``(2) a forecast of the minimum percentage of that traffic 
        the carrier would require the community to garner in order for 
        the carrier to start up and maintain the service; and
            ``(3) the costs and benefits of providing jet service by 
        regional or other jet aircraft.
    ``(d) Program Support Function.--The Secretary shall work with 
small communities and air carriers, taking into account their proposals 
and needs, to facilitate the initiation of service. The Secretary--
            ``(1) may work with communities to develop innovative means 
        and incentives for the initiation of service;
            ``(2) may obligate funds authorized by the Small 
        Communities Air Service Act of 1999 to carry out this section;
            ``(3) shall continue to work with both the carriers and the 
        communities to develop a combination of community incentives 
        and carrier service levels that--
                    ``(A) are acceptable to communities and carriers; 
                and
                    ``(B) do not conflict with other Federal or State 
                programs to facilitate air transportation to the 
                communities;
            ``(4) designate an airport in the program as an Air Service 
        Development Zone and work with the community on means to 
        attract business to the area surrounding the airport, to 
        develop land use options for the area, and provide data, 
        working with the Department of Commerce and other agencies; and
            ``(5) take such other action under this chapter as may be 
        appropriate.
    ``(e) Limitations.--
            ``(1) Community support.--The Secretary may not provide 
        financial assistance under subsection (c)(2) to any community 
        unless the Secretary determines that--
                    ``(A) a public-private partnership exists at the 
                community level to carry out the community's proposal;
                    ``(B) the community will make a substantial 
                financial contribution that is appropriate for that 
                community's resources, but of not less than 25 percent 
                of the cost of the project in any event;
                    ``(C) the community has established an open process 
                for soliciting air service proposals; and
                    ``(D) the community will accord similar benefits to 
                air carriers that are similarly situated.
            ``(2) Amount.--The Secretary may not obligate more than 
        $30,000,000 of the amounts authorized the Small Communities Air 
        Service Act of 1999 over the 4 years of the program.
            ``(3) Number of participants.--The program established 
        under subsection (a) shall not involve more than 40 communities 
        or consortia of communities.
    ``(f) Report.--The Secretary shall report through the Secretary to 
the Congress annually on the progress made under this section during 
the preceding year in expanding commercial aviation service to smaller 
communities.
``Sec. 41744. Pilot program project authority
    ``(a) In General.--The Secretary of Transportation under section 
102(g)(1) shall establish a 4-year pilot program--
            ``(1) to assist communities and States with inadequate 
        access to the national transportation system to improve their 
        access to that system; and
            ``(2) to facilitate better air service link-ups to support 
        the improved access.
    ``(b) Project Authority.--Under the pilot program established 
pursuant to subsection (a), the Secretary may--
            ``(1) out of amounts authorized by the Small Communities 
        Air Service Act of 1999, provide financial assistance by way of 
        grants to small communities or consortia of small communities 
        under section 41743 of up to $500,000 per year; and
            ``(2) take such other action as may be appropriate.
    ``(c) Other Action.--Under the pilot program established pursuant 
to subsection (a), the Secretary may facilitate service by--
            ``(1) working with airports and air carriers to ensure that 
        appropriate facilities are made available at essential 
        airports;
            ``(2) collecting data on air carrier service to small 
        communities; and
            ``(3) stimulating air service and competition to small 
        communities.
``Sec. 41745. Assistance to communities for service
    ``(a) In General.--Financial assistance provided under section 
41743 during any fiscal year as part of the pilot program established 
under section 41744(a) shall be implemented for not more than--
            ``(1) 4 communities within any State at any given time; and
            ``(2) 40 communities in the entire program at any time.
For purposes of this subsection, a consortium of communities shall be 
treated as a single community.
    ``(b) Elibigility.--In order to participate in a pilot project 
under this subchapter, a State, community, or group of communities 
shall apply to the Secretary in such form and at such time, and shall 
supply such information, as the Secretary may require, and shall 
demonstrate to the satisfaction of the Secretary that--
            ``(1) the applicant has an identifiable need for access, or 
        improved access, to the national air transportation system that 
        would benefit the public;
            ``(2) the pilot project will provide material benefits to a 
        broad section of the travelling public, businesses, educational 
        institutions, and other enterprises whose access to the 
        national air transportation system is limited;
            ``(3) the pilot project will not impede competition; and
            ``(4) the applicant has established, or will establish, 
        public-private partnerships in connection with the pilot 
        project to facilitate service to the public.
    ``(c) Coordination With Other Provisions of Subchapter.--The 
Secretary shall carry out the 4-year pilot program authorized by this 
subchapter in such a manner as to complement action taken under the 
other provisions of this subchapter. To the extent the Secretary 
determines to be appropriate, the Secretary may adopt criteria for 
implementation of the 4-year pilot program that are the same as, or 
similar to, the criteria developed under the preceding sections of this 
subchapter for determining which airports are eligible under those 
sections. The Secretary shall also, to the extent possible, provide 
incentives where no direct, viable, and feasible alternative 
service exists, taking into account geographical diversity and 
appropriate market definitions.
    ``(d) Maximization of Participation.--The Secretary shall structure 
the program established pursuant to section 41744(a) in a way designed 
to--
            ``(1) permit the participation of the maximum feasible 
        number of communities and States over a 4-year period by 
        limiting the number of years of participation or otherwise; and
            ``(2) obtain the greatest possible leverage from the 
        financial resources available to the Secretary and the 
        applicant by--
                    ``(A) progressively decreasing, on a project-by-
                project basis, any Federal financial incentives 
                provided under this chapter over the 4-year period; and
                    ``(B) terminating as early as feasible Federal 
                financial incentives for any project determined by the 
                Secretary after its implementation to be--
                            ``(i) viable without further support under 
                        this subchapter; or
                            ``(ii) failing to meet the purposes of this 
                        chapter or criteria established by the 
                        Secretary under the pilot program.
    ``(e) Success Bonus.--If Federal financial incentives to a 
community are terminated under subsection (d)(2)(B) because of the 
success of the program in that community, then that community may 
receive a one-time incentive grant to ensure the continued success of 
that program.
    ``(f) Program To Terminate in 4 Years.--No new financial assistance 
may be provided under this subchapter for any fiscal year beginning 
more than 4 years after the date of enactment of the Small Communities 
Air Service Act of 1999.
``Sec. 41746. Additional authority
    ``In carrying out this chapter, the Secretary--
            ``(1) may provide assistance to States and communities in 
        the design and application phase of any project under this 
        chapter, and oversee the implementation of any such project;
            ``(2) may assist States and communities in putting together 
        projects under this chapter to utilize private sector 
        resources, other Federal resources, or a combination of public 
        and private resources;
            ``(3) may accord priority to service by jet aircraft;
            ``(4) take such action as may be necessary to ensure that 
        financial resources, facilities, and administrative 
        arrangements made under this chapter are used to carry out the 
        Small Communities Air Service Act of 1999; and
            ``(5) shall work with the Federal Aviation Administration 
        on airport and air traffic control needs of communities in the 
        program.
Sec. 41747. Air traffic control services pilot program
    ``(a) In General.--To further facilitate the use of, and improve 
the safety at, small airports, the Administrator of the Federal 
Aviation Administration shall establish a pilot program to contract for 
Level I air traffic control services at 20 facilities not eligible for 
participation in the Federal Contract Tower Program.
    ``(b) Program Components.--In carrying out the pilot program 
established under subsection (a), the Administrator may--
            ``(1) utilize current, actual, site-specific, data, 
        forecast estimates, or airport system plan data provided by a 
        facility owner or operator;
            ``(2) take into consideration unique aviation safety, 
        weather, strategic national interest, disaster relief, medical 
        and other emergency management relief services, status of 
        regional airline service, and related factors at the facility;
            ``(3) approve for participation any facility willing to 
        fund a pro rata share of the operating costs used by the 
        Federal Aviation Administration to calculate, and, as 
        necessary, a 1:1 benefit-to-cost ratio, as required for 
        eligibility under the Federal Contract Tower Program; and
            ``(4) approve for participation no more than 3 facilities 
        willing to fund a pro rata share of construction costs for an 
        air traffic control tower so as to achieve, at a minimum, a 1:1 
        benefit-to-cost ratio, as required for eligibility under the 
        Federal Contract Tower Program, and for each of such facilities 
        the Federal share of construction costs does not exceed 
        $1,000,000.
    ``(c) Report.--One year before the pilot program established under 
subsection (a) terminates, the Administrator shall report to the 
Congress on the effectiveness of the program, with particular emphasis 
on the safety and economic benefits provided to program participants 
and the national air transportation system.''.
    (b) Conforming Amendment.--The chapter analysis for subchapter II 
of chapter 417 of such title is amended by inserting after the item 
relating to section 41742 the following:

``41743. Air service program for small communities.
``41744. Pilot program project authority.
``41745. Assistance to communities for service.
``41746. Additional authority.
``41747. Air traffic control services pilot program.''.
    (c) Waiver of Local Contribution.--Section 41736(b) is amended by 
inserting after paragraph (4) the following:
``Paragraph (4) does not apply to any community approved for service 
under this section during the period beginning October 1, 1991, and 
ending December 31, 1997.''.

SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Secretary of 
Transportation such sums as may be necessary to carry out the 
provisions of this Act and the amendments made by this Act.
                                 <all>