[Congressional Record Volume 141, Number 175 (Tuesday, November 7, 1995)]
[Senate]
[Pages S16755-S16756]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DORGAN (for himself, Mr. Exon, Mr. Rockefeller, Mr. 
        Kerrey, and Mr. Conrad):
  S. 1399. A bill to amend title 49, United States Code, to ensure 
funding for essential air service program and rural air safety 
programs, and for other purposes; to the Committee on Commerce, 
Science, and Transportation.


                   the rural air service survival act

 Mr. DORGAN. Mr. President, today I am introducing legislation 
that will help preserve air service in rural areas and save the 
Essential Air Service [EAS] Program for the future. I am pleased that 
my colleagues Senator Exon and Senator Rockefeller are joining me as 
original cosponsors of the Rural Air Service Survival Act.
  Last week, the Senate passed the conference report for the 
Transportation appropriations bill which cut the EAS Program by one-
third, reducing appropriations from $33 million in fiscal year 1995 to 
$22 million in fiscal year 1996. Under these reductions, dozens of 
communities will experience reductions in air service. As my colleagues 
understand, the EAS Program provides support to maintain air service in 
remote rural communities that would have no air service at all. EAS is 
a critical program that plays an essential role in the economic 
viability for many rural communities. It is also an indispensable 
component to our national transportation system, connecting remote 
rural areas with hub airports. If the EAS Program is terminated--as 
some in the Congress and in the administration have proposed--then 
dozens of rural communities will lose the only air service available to 
them. In the grand scheme of things, the EAS Program does not amount to 
a lot of money, but to the over 60 rural communities dependent upon 
EAS, it determines the very survival of air service.
  When the airline industry was deregulated, the EAS Program was 
established as a means to ensure rural areas continue to have air 
service. In several rural communities in North Dakota, EAS support is 
the only means to maintaining some kind of air service. These 
communities are at least 100 miles from the nearest airport which 
offers jet service.
  Over the past few years, the only constant in the EAS Program has 
been funding cuts. Each year, the administration proposes to eliminate 
EAS and those of us who understand the critical importance of this 
program are forced to fight for funding. The dramatic cuts for fiscal 
year 1996 should be a sign that the current budget process is not 
working for EAS and without the establishment of a permanent financing 
mechanism, the future is too uncertain for the rural communities that 
rely upon EAS support.
  This legislation that would provide a permanent financing mechanism 
for the EAS Program. It seems to me that the EAS Program ought to be 
removed from annual appropriations battles and be given more secure 
financing. Looking at the trend over the past few year, it is 
unrealistic for anyone to expect the EAS Program to last very long 
unless we develop a new financing mechanism to sustain the program.
  Under this legislation, a 10-cent fee would be imposed on every 
enplanement. The revenue raised would fund the EAS Program. The 
legislation would ensure that any administrative cost to carriers in 
collecting this small fee would be reimbursed. Any unobligated funds 
would be used to enhance the airport improvement program, directing 
that any excess funds be made available for small community airports 
for maintenance projects.
  This legislation would assure passengers and the industry that this 
financing mechanism will only be used for its intended purpose. The 
price of a dime will ensure that all areas of our country are 
accessible by air travel. It seems to me that we need to work to 
restructure the EAS Program and save air service in rural areas and 
this approach would provide a solution protected from annual Washington 
budget battles.
  I realize that given the present budget situation, those of us who 
really care about programs like EAS have to think of new solutions. We 
cannot continue to put new wine into old wineskins. We need to develop 
new financing mechanisms and make the most of limited Federal funding.
  Our transportation system in this country is vital to our economic 
health and national security. It is of critical importance that, 
despite tight budgets, we finds ways to maintain a truly national 
transportation system that links every region and State in the union. 
That is why we need to save the EAS Program and establish its own 
financing mechanism.
  It seems to me that we need to make some changes in aviation policy 
in this country and stop ignoring the fact that rural regions are 
suffering a serious decline in air service. The airline industry has 
undergone many changes since deregulation in the early 1980's. The 
invisible hand of competition replaced the assuring hand of Government 
in the aviation market place. As a result, some areas of the country 
have seen lower prices and more choices in service. In other parts of 
the country, namely in rural areas, we have seen dramatic losses in air 
service and higher prices.
  It is my view that our Nation's small communities, especially in 
rural areas, have not fared well under deregulation: One hundred sixty-
seven nonhub communities have lost all air service since 1978 while 
only 26 have gained new services. Several hundred more have had jet 
service replaced by high-cost turboprop or piston aircraft. The result 
for small communities has been a deterioration of the quality of 
service an increase in prices.
  The legislation will secure a reliable source of financing for the 
EAS Program. The EAS Program is essential to our Nation's national 
transportation system and this legislation will ensure that this 
program continues. The legislation has been endorsed by Communicating 
for Agriculture.
  I urge my colleagues to support this legislation and I ask unanimous 
consent that the full text of the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1399

       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 Air Service Survival 
     Act''.

     SEC. 2. FINDINGS.

       The Congress finds that--
       (1) air service in rural areas is essential to a national 
     transportation network;
       (2) the rural air service infrastructure supports the safe 
     operation of all air travel;
       (3) rural air service creates economic benefits for all air 
     carriers by making the national aviation system available to 
     passengers from rural areas;
       (4) rural air service has suffered since deregulation;
       (5) the essential air service program under the Department 
     of Transportation--
       (A) provides essential airline access to rural and isolated 
     rural communities throughout the Nation;
       (B) is necessary for the economic growth and development of 
     rural communities;
       (C) is a critical component of the national transportation 
     system of the United States; and
       (E) has endured serious funding cuts in recent years; and
       (6) a reliable source of funding must be established to 
     maintain air service in rural areas and the essential air 
     service program.

     SEC. 3. FUNDING FOR SMALL COMMUNITY AIR SERVICE.

       Section 40117 of title 49, United States Code, is amended 
     by adding at the end thereof the following:
       ``(j) Additional Fee.--
       ``(1) Imposition of fee.--Each eligible agency that may 
     impose a passenger facility fee under this section shall 
     impose a 10-cent fee under this subsection for each 
     enplanement to provide funds to support a 

[[Page S 16756]]
     national aviation system, rural airspace safety, and rural air service.
       ``(2) Fee to be separately accounted for.--The proceeds of 
     fees imposed under this subsection shall be accounted for 
     separately from the proceeds of any fee imposed under 
     subsection (b).
       ``(3) Fees to be used for small community air service.--
       ``(A) In general.--Fees collected under this subsection 
     shall be immediately made available to the Secretary for use 
     in carrying out the essential air service program under 
     subchapter II of chapter 417 of this title.
       ``(B) Disposition of excess funds.--Any funds that are not 
     obligated or expended at the end of the fund's fiscal year 
     for the purpose of funding the essential air service program 
     under such subchapter shall be made available to the Federal 
     Aviation Administration for use in improving rural air safety 
     under subchapter I of chapter 471 of this title and shall be 
     used exclusively for projects at rural airports under 
     subchapter II of chapter 417 of this title.
       ``(C) Compensation of air carriers for acting as collection 
     agents.--The Secretary shall prescribe regulations under 
     which any air carrier or its agent required to collect fees 
     imposed under this section is permitted to retain, out of the 
     amounts collected, an amount equal to the necessary and 
     reasonable expenses (reduced by any interest earned on the 
     deposit of such amounts during the period between collection 
     and remittance) incurred in collecting and handling the 
     fees.''.

     SEC. 4. SECRETARY MAY REQUIRE MATCHING LOCAL FUNDS.

       Section 41737 of title 49, United States Code, is amended 
     by adding at the end thereof the following:
       ``(f) Matching funds.--No earlier than 2 years after the 
     date of enactment of the Rural Air Service Survival Act, the 
     Secretary may require an eligible agency, as defined in 
     section 40117(a)(2) of this title, to provide matching funds 
     of up to 10 percent for any payments it receives under this 
     subchapter.''.

     SEC. 5. EFFECTIVE DATE.

       The amendments made by this section shall take effect on 
     the first day of October next occurring after the date of 
     enactment of this Act.
                                 ______