[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 983 Introduced in Senate (IS)]

111th CONGRESS
  1st Session
                                 S. 983

  To reform the essential air service program, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 6, 2009

Ms. Snowe (for herself and Mr. Bingaman) introduced the following bill; 
    which was read twice and referred to the Committee on Commerce, 
                      Science, and Transportation

_______________________________________________________________________

                                 A BILL


 
  To reform the essential air service program, 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 ``Rural Aviation Improvement Act''.

SEC. 2. REPEAL OF ESSENTIAL AIR SERVICE LOCAL PARTICIPATION PROGRAM.

    (a) In General.--Subchapter II of chapter 417 of title 49, United 
States Code, is amended by striking section 41747, and such title 49 
shall be applied as if such section 41747 had not been enacted.
    (b) Clerical Amendment.--The table of sections for chapter 417 of 
title 49, United States Code, is amended by striking the item relating 
to section 41747.

SEC. 3. PER PASSENGER SUBSIDY FOR ESSENTIAL AIR SERVICE.

    (a) In General.--Section 41742 of title 49, United States Code, is 
amended by adding at the end the following:
    ``(c) Per Passenger Subsidy Cap.--
            ``(1) In general.--The Secretary of Transportation may not 
        provide compensation to an air carrier to provide air 
        transportation under this subchapter to an otherwise eligible 
        place in the 48 contiguous States if the eligible place--
                    ``(A) is located fewer than 70 highway miles from a 
                large hub airport or medium hub airport; or
                    ``(B) is located fewer than 210 highway miles from 
                a large hub airport or medium hub airport and providing 
                such air transportation would require a per passenger 
                subsidy in excess of the dollar amount described in 
                paragraph (2).
            ``(2) Dollar amount of per passenger subsidy.--
                    ``(A) Dollar amount in 2010.--For calendar year 
                2010, the dollar amount described in this paragraph is 
                $200.
                    ``(B) Dollar amount after 2010.--For any calendar 
                year after calendar year 2010, the dollar amount 
                described in this paragraph is an amount equal to $200 
                increased or decreased by an amount equal to--
                            ``(i) $200, multiplied by
                            ``(ii) the percentage (if any) of the 
                        increase or decrease (as the case may be) in 
                        the CPI for the preceding calendar year 
                        compared to the CPI for calendar year 2009.
                    ``(C) Rounding.--Any increase or decrease under 
                subparagraph (B) of the dollar amount described in this 
                paragraph shall be rounded to the nearest dollar.
            ``(3) CPI for any calendar year.--For purposes of paragraph 
        (2), the CPI for any calendar year is the average of the 
        Consumer Price Index as of the close of the 12-month period 
        ending on August 31 of that calendar year.
            ``(4) Consumer price index.--For purposes of paragraph (3), 
        the term `Consumer Price Index' means the last Consumer Price 
        Index for all-urban consumers published by the Department of 
        Labor.''.
    (b) Per Passenger Subsidy Defined.--Section 41731(a) of title 49, 
United States Code, is amended by adding at the end the following:
            ``(3) `per passenger subsidy' means--
                    ``(A) the total compensation provided by the 
                Secretary of Transportation to an air carrier under 
                this subchapter that is necessary for the air carrier 
                to provide air transportation to an eligible place, 
                divided by
                    ``(B) the total number of passengers using such air 
                transportation.''.
    (c) Conforming Repeal.--Section 332 of the Department of 
Transportation and Related Agencies Appropriations Act, 2000 (Public 
Law 106-69; 49 U.S.C. 41731 note) is repealed.

SEC. 4. COMMUNITIES ABOVE PER PASSENGER SUBSIDY CAP.

    (a) In General.--Subchapter II of chapter 417 of title 49, United 
States Code, is amended by adding at the end the following:
``Sec. 41749. Essential air service for eligible places above per 
              passenger subsidy cap
    ``(a) Proposals.--A State or local government may submit a proposal 
to the Secretary of Transportation for compensation for an air carrier 
to provide air transportation to a place described in subsection (b).
    ``(b) Place Described.--A place described in this subsection is a 
place--
            ``(1) that is otherwise an eligible place; and
            ``(2) for which the per passenger subsidy exceeds the 
        dollar amount described in section 41742(c).
    ``(c) Decisions.--Not later than 90 days after receiving a proposal 
under subsection (a) for compensation for an air carrier to provide air 
transportation to a place described in subsection (b), the Secretary 
shall--
            ``(1) decide whether to provide compensation for the air 
        carrier to provide air transportation to the place; and
            ``(2) approve the proposal if the State or local government 
        or a person is willing and able to pay the difference between--
                    ``(A) the per passenger subsidy; and
                    ``(B) the dollar amount allowable for such subsidy 
                under section 41742(c).
    ``(d) Compensation Payments.--
            ``(1) In general.--If the Secretary decides to provide 
        compensation for an air carrier to provide air transportation 
        to a place under subsection (c), the Secretary shall pay such 
        compensation at such time and in such manner as the Secretary 
        determines is appropriate.
            ``(2) Duration of payments.--The Secretary shall continue 
        to pay compensation under this section only as long as--
                    ``(A) the State or local government or person 
                agreeing to pay compensation under subsection (c)(2) 
                continues to pay such compensation; and
                    ``(B) the Secretary decides the compensation is 
                necessary to maintain air transportation to the place.
    ``(e) Review.--
            ``(1) In general.--The Secretary shall periodically review 
        the type and level of air service provided under this section.
            ``(2) Consultation.--The Secretary may make appropriate 
        adjustments in the type and level of air service to a place 
        under this section based on the review under paragraph (1) and 
        consultation with the affected community and the State or local 
        government or person agreeing to pay compensation under 
        subsection (c)(2).
    ``(f) Ending, Suspending, and Reducing Air Transportation.--An air 
carrier providing air transportation to a place under this section may 
end, suspend, or reduce such air transportation if, not later than 30 
days before ending, suspending, or reducing such air transportation, 
the air carrier provides notice of the intent of the air carrier to 
end, suspend, or reduce such air transportation to--
            ``(1) the Secretary;
            ``(2) the affected community; and
            ``(3) the State or local government or person agreeing to 
        pay compensation under subsection (c)(2).''.
    (b) Clerical Amendment.--The table of sections for chapter 417 of 
title 49, United States Code, is amended by adding after the item 
relating to section 41748 the following new item:

``41749. Essential air service for eligible places above per passenger 
                            subsidy cap.''.

SEC. 5. PREFERRED ESSENTIAL AIR SERVICE.

    (a) In General.--Subchapter II of chapter 417 of title 49, United 
States Code, as amended by section 4, is further amended by adding 
after section 41749 the following:
``Sec. 41750. Preferred essential air service
    ``(a) Proposals.--A State or local government may submit a proposal 
to the Secretary of Transportation for compensation for a preferred air 
carrier described in subsection (b) to provide air transportation to an 
eligible place.
    ``(b) Preferred Air Carrier Described.--A preferred air carrier 
described in this subsection is an air carrier that--
            ``(1) submits an application under section 41733(c) to 
        provide air transportation to an eligible place;
            ``(2) is not the air carrier that submits the lowest cost 
        bid to provide air transportation to the eligible place; and
            ``(3) is an air carrier that the affected community prefers 
        to provide air transportation to the eligible place instead of 
        the air carrier that submits the lowest cost bid.
    ``(c) Decisions.--Not later than 90 days after receiving a proposal 
under subsection (a) for compensation for a preferred air carrier 
described in subsection (b) to provide air transportation to an 
eligible place, the Secretary shall--
            ``(1) decide whether to provide compensation for the 
        preferred air carrier to provide air transportation to the 
        eligible place; and
            ``(2) approve the proposal if the State or local government 
        or a person is willing and able to pay the difference between--
                    ``(A) the rate of compensation the Secretary would 
                provide to the air carrier that submits the lowest cost 
                bid to provide air transportation to the eligible 
                place; and
                    ``(B) the rate of compensation the preferred air 
                carrier estimates to be necessary to provide air 
                transportation to the eligible place.
    ``(d) Compensation Payments.--
            ``(1) In general.--If the Secretary decides to provide 
        compensation for a preferred air carrier to provide air 
        transportation to an eligible place under subsection (c), the 
        Secretary shall pay such compensation at such time and in such 
        manner as the Secretary determines is appropriate.
            ``(2) Duration of payments.--The Secretary shall continue 
        to pay compensation under this section only as long as--
                    ``(A) the State or local government or person 
                agreeing to pay compensation under subsection (c)(2) 
                continues to pay such compensation; and
                    ``(B) the Secretary decides that it is necessary to 
                pay compensation to an air carrier to maintain air 
                transportation to the eligible place.
    ``(e) Review.--
            ``(1) In general.--The Secretary shall periodically review 
        the type and level of air service provided under this section.
            ``(2) Consultation.--The Secretary may make appropriate 
        adjustments in the type and level of air service to an eligible 
        place under this section based on the review under paragraph 
        (1) and consultation with the affected community and the State 
        or local government or person agreeing to pay compensation 
        under subsection (c)(2).
    ``(f) Ending, Suspending, and Reducing Air Transportation.--A 
preferred air carrier providing air transportation to an eligible place 
under this section may end, suspend, or reduce such air transportation 
if, not later than 30 days before ending, suspending, or reducing such 
air transportation, the preferred air carrier provides notice of the 
intent of the preferred air carrier to end, suspend, or reduce such air 
transportation to--
            ``(1) the Secretary;
            ``(2) the affected community; and
            ``(3) the State or local government or person agreeing to 
        pay compensation under subsection (c)(2).''.
    (b) Clerical Amendment.--The table of sections for chapter 417 of 
title 49, United States Code, as amended by section 4, is further 
amended by adding after the item relating to section 41749 the 
following new item:

``41750. Preferred essential air service.''.

SEC. 6. RESTORATION OF ELIGIBILITY TO A PLACE DETERMINED BY THE 
              SECRETARY TO BE INELIGIBLE FOR SUBSIDIZED ESSENTIAL AIR 
              SERVICE.

    Section 41733 of title 49, United States Code, is amended by adding 
at the end the following new subsection:
    ``(f) Restoration of Eligibility for Subsidized Essential Air 
Service.--
            ``(1) In general.--If the Secretary of Transportation 
        terminates the eligibility of a place to receive basic 
        essential air service, a State or local government may submit 
        to the Secretary a proposal for restoring such eligibility.
            ``(2) Determination by secretary.--If the per passenger 
        subsidy required to provide basic essential air service to a 
        place pursuant to a proposal submitted under paragraph (1) does 
        not exceed the per passenger subsidy cap described in section 
        41742(c), the Secretary shall issue an order restoring the 
        eligibility of the place to receive basic essential air 
        service.''.

SEC. 7. CALCULATION OF HIGHWAY MILEAGE TO MEDIUM AND LARGE HUB 
              AIRPORTS.

    (a) In General.--Section 41731 of title 49, United States Code, is 
amended by adding at the end the following:
    ``(c) Calculation of Highway Mileage to Medium and Large Hub 
Airports.--
            ``(1) In general.--In making any decision under this 
        subchapter with respect to compensation or eligibility for 
        compensation for essential air service based on the highway 
        mileage of an eligible place from the nearest large hub airport 
        or medium hub airport, the Secretary of Transportation shall 
        calculate the highway mileage based on the highway mileage of 
        the most commonly used route, as identified under paragraph 
        (2).
            ``(2) Most commonly used route.--The Secretary shall 
        identify the most commonly used route between an eligible place 
        and the nearest large hub airport or medium hub airport by--
                    ``(A) consulting with the Governor or a designee of 
                the Governor in the State in which the eligible place 
                is located; and
                    ``(B) considering the route certified by the 
                Governor or a designee of the Governor to be the most 
                commonly used route.
            ``(3) Applicability.--This subsection shall apply only with 
        respect to eligible places in the 48 contiguous States and the 
        District of Columbia.''.
    (b) Conforming Amendment.--Section 409 of Vision 100--Century of 
Aviation Reauthorization Act (Public Law 108-176; 49 U.S.C. 41731 note) 
is repealed.

SEC. 8. OFFICE OF RURAL AVIATION.

    (a) Establishment.--There is established within the Office of the 
Secretary of Transportation the Office of Rural Aviation (in this 
section referred to as the ``Office'').
    (b) Functions.--The functions of the Office are--
            (1) to develop a uniform 4-year contract for air carriers 
        providing essential air service to communities under subchapter 
        II of chapter 417 of title 49, United States Code;
            (2) to develop a mechanism for comparing applications 
        submitted by air carriers under section 41733(c) to provide 
        essential air service to communities, including comparing--
                    (A) estimates from air carriers on--
                            (i) the cost of providing essential air 
                        service; and
                            (ii) the revenues air carriers expect to 
                        receive when providing essential air service; 
                        and
                    (B) estimated schedules for air transportation; and
            (3) to select an air carrier from among air carriers 
        applying to provide essential air service, based on the 
        criteria described in paragraph (2).

SEC. 9. ADJUSTMENTS TO COMPENSATION FOR SIGNIFICANTLY INCREASED COSTS.

    Section 41737 of title 49, United States Code, is amended--
            (1) in subsection (a)(1)--
                    (A) in subparagraph (B), by striking ``; and'' and 
                inserting a semicolon;
                    (B) in subparagraph (C), by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(D) provide for an adjustment in compensation to 
                account for significant increases in fuel costs, in 
                accordance with subsection (e).''; and
            (2) in subsection (e)--
                    (A) in paragraph (1), by striking ``may'' and 
                inserting ``shall''; and
                    (B) in paragraph (2), by striking ``may'' and 
                inserting ``shall''.

SEC. 10. CHARTER AIR CARRIER PASSENGER BOARDINGS.

    Notwithstanding any other provision of law, the Secretary of 
Transportation shall treat passenger boardings on aircraft operated by 
charter air carriers at airports receiving essential air service under 
subchapter II of chapter 417 of title 49, United States Code, as 
passenger boardings for purposes of section 47114(c)(1)(E) of such 
title.

SEC. 11. AUTHORIZATION OF APPROPRIATIONS.

    (a) Essential Air Service.--Section 41737(d)(2) of title 49, United 
States Code, is amended to read as follows:
    ``(2) In addition to amounts authorized to be appropriated under 
section 41742(a), not more than $125,000,000 shall be available to the 
Secretary out of the Fund for each of the fiscal years 2010 through 
2013 to incur obligations under this section. Amounts made available 
under this section remain available until expended.''.
    (b) Small Community Air Service Development Program.--Section 
41743(e)(2) of title 49, United States Code, is amended by striking 
``2009'' and inserting ``2013''.
                                 <all>