[Congressional Record Volume 144, Number 128 (Wednesday, September 23, 1998)]
[Senate]
[Pages S10800-S10814]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 WENDELL H. FORD NATIONAL AIR TRANSPORTATION SYSTEM IMPROVEMENT ACT OF 
                                  1998

  The PRESIDING OFFICER (Ms. Collins). Under the previous agreement, 
the clerk will now report the pending bill, S. 2279.
  The bill clerk read as follows:

       A bill (S. 2279) to amend title 49, United States Code, to 
     authorize the programs of the Federal Aviation Administration 
     for fiscal years 1999, 2000, 2001, and 2002, and for other 
     purposes.

  The Senate proceeded to consider the bill, which had been reported 
from the Committee on Commerce, Science, and Transportation, with an 
amendment to strike all after the enacting clause and inserting in lieu 
thereof the following:

     SECTION 1. SHORT TITLE; TABLE OF SECTIONS.

       (a) Short Title.--This Act may be cited as the ``Wendell H. 
     Ford National Air Transportation System Improvement Act of 
     1998''.
       (b) Table of Sections.--The table of sections for this Act 
     is as follows:

Sec. 1. Short title; table of sections.
Sec. 2. Amendments to title 49, United States Code.

                        TITLE I--AUTHORIZATIONS

Sec. 101. Federal Aviation Administration operations.
Sec. 102. Air navigation facilities and equipment.
Sec. 103. Airport planning and development and noise compatibility 
              planning and programs.
Sec. 104. Reprogramming notification requirement.
Sec. 105. Airport security program.
Sec. 106. Contract tower program.

            TITLE II--AIRPORT IMPROVEMENT PROGRAM AMENDMENTS

Sec. 201. Removal of the cap on discretionary fund.
Sec. 202. Innovative use of airport grant funds.
Sec. 203. Matching share.
Sec. 204. Increase in apportionment for noise compatibility planning 
              and programs.
Sec. 205. Technical amendments.
Sec. 206. Repeal of period of applicability.
Sec. 207. Report on efforts to implement capacity enhancements.
Sec. 208. Prioritization of discretionary projects.
Sec. 209. Public notice before grant assurance requirement waived.
Sec. 210. Definition of public aircraft.
Sec. 211. Terminal development costs.

                 TITLE III--AMENDMENTS TO AVIATION LAW

Sec. 301. Severable services contracts for periods crossing fiscal 
              years.
Sec. 302. Foreign carriers eligible for waiver under Airport Noise and 
              Capacity Act.
Sec. 303. Government and industry consortia.
Sec. 304. Implementation of Article 83 Bis of the Chicago Convention.
Sec. 305. Foreign aviation services authority.
Sec. 306. Flexibility to perform criminal history record checks; 
              technical amendments to Pilot Records Improvement Act.
Sec. 307. Aviation insurance program amendments.
Sec. 308. Technical corrections to civil penalty provisions.

                TITLE IV--TITLE 49 TECHNICAL CORRECTIONS

Sec. 401. Restatement of 49 U.S.C. 106(g).
Sec. 402. Restatement of 49 U.S.C. 44909.
Sec. 403. Typographical errors.

                         TITLE V--MISCELLANEOUS

Sec. 501. Oversight of FAA response to year 2000 problem.
Sec. 502. Cargo collision avoidance systems deadline.
Sec. 503. Runway safety areas.
Sec. 504. Airplane emergency locators.
Sec. 505. Counterfeit aircraft parts.
Sec. 506. FAA may fine unruly passengers.
Sec. 507. Higher international standards for handicapped access.
Sec. 508. Conveyances of United States Government land.
Sec. 509. Flight operations quality assurance rules.
Sec. 510. Wide area augmentation system.
Sec. 511. Regulation of Alaska air guides.
Sec. 512. Application of FAA regulations.
Sec. 513. Human factors program.
Sec. 514. Independent validation of FAA costs and allocations.
Sec. 515. Whistleblower protection for FAA employees.

[[Page S10801]]

Sec. 516. Report on modernization of oceanic ATC system.
Sec. 517. Report on air transportation oversight system.
Sec. 518. Recycling of EIS.
Sec. 519. Protection of employees providing air safety information.

                TITLE VI--AVIATION COMPETITION PROMOTION

Sec. 601. Purpose.
Sec. 602. Establishment of small community aviation development 
              program.
Sec. 603. Community-carrier air service program.
Sec. 604. Authorization of appropriations.
Sec. 605. Marketing practices.
Sec. 606. Slot exemptions for nonstop regional jet service.
Sec. 607. Secretary shall grant exemptions to perimeter rule.
Sec. 608. Additional slots at Chicago's O'Hare Airport.
Sec. 609. Consumer notification of e-ticket expiration dates.
Sec. 610. Joint venture agreements.
Sec. 611. Regional air service incentive options.
Sec. 612. GAO study of rural air transportation needs.

                  TITLE VII--NATIONAL PARK OVERFLIGHTS

Sec. 701. Findings.
Sec. 702. Air tour management plans for national parks.
Sec. 703. Advisory group.
Sec. 704. Overflight fee report.

               TITLE VIII--AVIATION TRUST FUND AMENDMENTS

Sec. 801. Amendments to the Airport and Airway Trust Fund.

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

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

     SEC. 101. FEDERAL AVIATION ADMINISTRATION OPERATIONS.

       Section 106(k) is amended to read as follows:
       ``(k) Authorization of Appropriations for Operations.--
       ``(1) In general.--There are authorized to be appropriated 
     to the Secretary of Transportation for operations of the 
     Administration $5,631,000,000 for fiscal year 1999, 
     $5,784,000,000 for fiscal year 2000, $5,946,000,000 for 
     fiscal year 2001, and $6,112,000,000 for fiscal year 2002. Of 
     the amounts authorized to be appropriated for fiscal year 
     1999, not more than $9,100,000 shall be used to support air 
     safety efforts through payment of United States membership 
     obligations, to be paid as soon as practicable.
       ``(2) Authorized expenditures.--Of the amounts appropriated 
     under paragraph (1) $450,000 may be used for wildlife hazard 
     mitigation measures and management of the wildlife strike 
     database of the Federal Aviation Administration.
       ``(3) University consortium.--There are authorized to be 
     appropriated not more than $9,100,000 for the 3 fiscal year 
     period beginning with fiscal year 1999 to support a 
     university consortium established to provide an air safety 
     and security management certificate program, working 
     cooperatively with the Federal Aviation Administration and 
     United States air carriers. Funds authorized under this 
     paragraph--
       ``(A) may not be used for the construction of a building or 
     other facility; and
       ``(B) shall be awarded on the basis of open competition.''.

     SEC. 102. AIR NAVIGATION FACILITIES AND EQUIPMENT.

       (a) In General.--Section 48101(a) is amended by striking 
     paragraphs (1) and (2) and inserting the following:
       ``(1) for fiscal year 1999--
       ``(A) $222,800,000 for engineering, development, test, and 
     evaluation: en route programs;
       ``(B) $74,700,000 for engineering, development, test, and 
     evaluation: terminal programs;
       ``(C) $108,000,000 for engineering, development, test, and 
     evaluation: landing and navigational aids;
       ``(D) $17,790,000 for engineering, development, test, and 
     evaluation: research, test, and evaluation equipment and 
     facilities programs;
       ``(E) $391,358,300 for air traffic control facilities and 
     equipment: en route programs;
       ``(F) $492,315,500 for air traffic control facilities and 
     equipment: terminal programs;
       ``(G) $38,764,400 for air traffic control facilities and 
     equipment: flight services programs;
       ``(H) $50,500,000 for air traffic control facilities and 
     equipment: other ATC facilities programs;
       ``(I) $162,400,000 for non-ATC facilities and equipment 
     programs;
       ``(J) $14,500,000 for training and equipment facilities 
     programs;
       ``(K) $280,800,000 for mission support programs;
       ``(L) $235,210,000 for personnel and related expenses;
       ``(2) $2,189,000,000 for fiscal year 2000;
       ``(3) $2,250,000,000 for fiscal year 2001; and
       ``(4) $2,313,000,000 for fiscal year 2002.''.
       (b) Continuation of ILS Inventory Program.--Section 
     44502(a)(4)(B) is amended--
       (1) by striking ``fiscal years 1995 and 1996'' and 
     inserting ``fiscal years 1999, 2000, 2001, and 2002''; and
       (2) by striking ``acquisition,'' and inserting 
     ``acquisition under new or existing contracts,''.
       (c) Life-Cycle Cost Estimates.--The Administrator of the 
     Federal Aviation Administration shall establish life-cycle 
     cost estimates for any air traffic control modernization 
     project the total life-cycle costs of which equal or exceed 
     $50,000,000.

     SEC. 103. AIRPORT PLANNING AND DEVELOPMENT AND NOISE 
                   COMPATIBILITY PLANNING AND PROGRAMS.

       (a) Extension and Authorization.--Section 48103 is amended 
     by--
       (1) striking ``September 30, 1996,'' and inserting 
     ``September 30, 1998,''; and
       (2) striking ``$2,280,000,000 for fiscal years ending 
     before October 1, 1997, and $4,627,000,000 for fiscal years 
     ending before October 1, 1998.'' and inserting 
     ``$2,410,000,000 for fiscal years ending before October 1, 
     1999, $4,885,000,000 for fiscal years ending before October 
     1, 2000, $7,427,000,000 for fiscal years ending before 
     October 1, 2001, and $10,038,000,000 for fiscal years ending 
     before October 1, 2002.''.
       (b) Project Grant Authority.--Section 47104(c) is amended 
     by striking ``1998,'' and inserting ``2002,''.

     SEC. 104. REPROGRAMMING NOTIFICATION REQUIREMENT.

       Before reprogramming any amounts appropriated under section 
     106(k), 48101(a), or 48103 of title 49, United States Code, 
     for which notification of the Committees on Appropriations of 
     the Senate and the House of Representatives is required, the 
     Secretary of Transportation shall submit a written 
     explanation of the proposed reprogramming to the Committee on 
     Commerce, Science, and Transportation of the Senate and the 
     Committee on Transportation and Infrastructure of the House 
     of Representatives.

     SEC. 105. AIRPORT SECURITY PROGRAM.

       (a) In General.--Chapter 471 (as amended by section 202(a) 
     of this Act) is amended by adding the following new section:

     ``Sec.  47136. Airport security program

       ``(a) General Authority.--To improve security at public 
     airports in the United States, the Secretary of 
     Transportation shall carry out not less than 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 assurances, 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 analysis for subchapter I of 
     such chapter (as amended by section 202(b) of this Act) is 
     amended by adding at the end the following:

``47136. Airport security program.''.

     SEC. 106. 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.
            TITLE II--AIRPORT IMPROVEMENT PROGRAM AMENDMENTS

     SEC. 201. REMOVAL OF THE CAP ON DISCRETIONARY FUND.

       Section 47115(g) is amended by striking paragraph (4).

     SEC. 202. INNOVATIVE USE OF AIRPORT GRANT FUNDS.

       (a) Codification and Improvement of 1996 Program.--
     Subchapter I of chapter 471 is amended by adding at the end 
     thereof the following:

     ``Sec.  47135. Innovative financing techniques

       ``(a) In General.--The Secretary of Transportation is 
     authorized to carry out a demonstration program under which 
     the Secretary may approve applications under this subchapter 
     for not more than 20 projects for which grants received under 
     the subchapter may be used to implement innovative financing 
     techniques.
       ``(b) Purpose.--The purpose of the demonstration program 
     shall be to provide information on the use of innovative 
     financing techniques for airport development projects.
       ``(c) Limitation--In no case shall the implementation of an 
     innovative financing technique under the demonstration 
     program result in a direct or indirect guarantee of any 
     airport debt instrument by the United States Government.
       ``(d) Innovative Financing Technique Defined.--In this 
     section, the term `innovative financing technique' includes 
     methods of financing projects that the Secretary determines 
     may be beneficial to airport development, including--
       ``(1) payment of interest;
       ``(2) commercial bond insurance and other credit 
     enhancement associated with airport bonds for eligible 
     airport development; and
       ``(3) flexible non-Federal matching requirements.''.

[[Page S10802]]

       (b) Conforming Amendment.--The chapter analysis for chapter 
     471 is amended by inserting after the item relating to 
     section 47134 the following:

``47135. Innovative financing techniques.''.

     SEC. 203. MATCHING SHARE.

       Section 47109(a)(2) is amended by inserting ``not more 
     than'' before ``90 percent''.

     SEC. 204. INCREASE IN APPORTIONMENT FOR NOISE COMPATIBILITY 
                   PLANNING AND PROGRAMS.

       Section 47117(e)(1)(A) is amended by striking ``31'' each 
     time it appears and substituting ``35''.

     SEC. 205. TECHNICAL AMENDMENTS.

       (a) Use of Apportionments for Alaska, Puerto Rico, and 
     Hawaii.--Section 47114(d)(3) is amended to read as follows:
       ``(3) An amount apportioned under paragraph (2) of this 
     subsection for airports in Alaska, Hawaii, or Puerto Rico may 
     be made available by the Secretary for any public airport in 
     those respective jurisdictions.''.
       (b) Supplemental Apportionment for Alaska.--Section 
     47114(e) is amended--
       (1) by striking ``Alternative'' in the subsection caption 
     and inserting ``Supplemental'';
       (2) in paragraph (1) by--
       (A) striking ``Instead of apportioning amounts for airports 
     in Alaska under'' and inserting ``Notwithstanding''; and
       (B) striking ``those airports'' and inserting ``airports in 
     Alaska''; and
       (3) striking paragraph (3) and inserting the following:
       ``(3) An amount apportioned under this subsection may be 
     used for any public airport in Alaska.''.
       (c) Repeal of Apportionment Limitation on Commercial 
     Service Airports in Alaska.--Section 47117 is amended by 
     striking subsection (f) and redesignating subsections (g) and 
     (h) as subsections (f) and (g), respectively.
       (d) Discretionary Fund Definition.--
       (1) Section 47115 is amended--
       (A) by striking ``25'' in subsection (a) and inserting 
     ``12.5''; and
       (B) by striking the second sentence in subsection (b).
       (2) Section 47116 is amended--
       (A) by striking ``75'' in subsection (a) and inserting 
     ``87.5'';
       (B) by redesignating paragraphs (1) and (2) in subsection 
     (b) as subparagraphs (A) and (B), respectively, and inserting 
     before subparagraph (A), as so redesignated, the following:
       ``(1) one-seventh for grants for projects at small hub 
     airports (as defined in section 41731 of this title); and
       ``(2) the remaining amounts based on the following:''.
       (e) Continuation of Project Funding.--Section 47108 is 
     amended by adding at the end thereof the following:
       ``(e) Change in Airport Status.--If the status of a primary 
     airport changes to a non-primary airport at a time when a 
     development project under a multiyear agreement under 
     subsection (a) is not yet completed, the project shall remain 
     eligible for funding from discretionary funds under section 
     47115 of this title at the funding level and under the 
     terms provided by the agreement, subject to the 
     availability of funds.''.
       (f) Grant Eligibility for Private Reliever Airports.--
     Section 47102(17)(B) is amended by--
       (1) striking ``or'' at the end of clause (i) and 
     redesignating clause (ii) as clause (iii); and
       (2) inserting after clause (i) the following:
       ``(ii) a privately-owned airport that, as a reliever 
     airport, received Federal aid for airport development prior 
     to October 9, 1996, but only if the Administrator issues 
     revised administrative guidance after July 1, 1998, for the 
     designation of reliever airports; or''.
       (g) Reliever Airports Not Eligible for Letters of Intent.--
     Section 47110(e)(1) is amended by striking ``or reliever''.
       (h) Passenger Facility Fee Waiver for Certain Class of 
     Carriers.--Section 40117(e)(2) is amended--
       (1) by striking ``and'' after the semicolon in subparagraph 
     (B);
       (2) by striking ``payment.'' in subparagraph (C) and 
     inserting ``payment; and''; and
       (3) by adding at the end thereof the following:
       ``(D) in Alaska aboard an aircraft having a seating 
     capacity of less than 20 passengers.''.
       (i) Passenger Facility Fee Waiver for Certain Class of 
     Carriers or for Service to Airports in Isolated 
     Communities.--Section 40117(i) is amended--
       (1) by striking ``and'' at the end of paragraph (1);
       (2) by striking ``transportation.'' in paragraph (2)(D) and 
     inserting ``transportation; and''; and
       (3) by adding at the end thereof the following:
       ``(3) may permit a public agency to request that collection 
     of a passenger facility fee be waived for--
       ``(A) passengers enplaned by any class of air carrier or 
     foreign air carrier if the number of passengers enplaned by 
     the carriers in the class constitutes not more than one 
     percent of the total number of passengers enplaned annually 
     at the airport at which the fee is imposed; or
       ``(B) passengers enplaned on a flight to an airport--
       ``(i) that has fewer than 2,500 passenger boardings each 
     year and receives scheduled passenger service; or
       ``(ii) in a community which has a population of less than 
     10,000 and is not connected by a land highway or vehicular 
     way to the land-connected National Highway System within a 
     State.''.
       (j) Use of the Word ``gift'' and Priority for Airports in 
     Surplus Property Disposal.--
       (1) Section 47151 is amended--
       (A) by striking ``give'' in subsection (a) and inserting 
     ``convey to'';
       (B) by striking ``gift'' in subsection (a)(2) and inserting 
     ``conveyance'';
       (C) by striking ``giving'' in subsection (b) and inserting 
     ``conveying'';
       (D) by striking ``gift'' in subsection (b) and inserting 
     ``conveyance''; and
       (E) by adding at the end thereof the following:
       ``(d) Priority for Public Airports.--Except for requests 
     from another Federal agency, a department, agency, or 
     instrumentality of the Executive Branch of the United States 
     Government shall give priority to a request by a public 
     agency (as defined in section 47102 of this title) for 
     surplus property described in subsection (a) of this section 
     for use at a public airport.''.
       (2) Section 47152 is amended--
       (A) by striking ``gifts'' in the section caption and 
     inserting ``conveyances''; and
       (B) by striking ``gift'' in the first sentence and 
     inserting ``conveyance''.
       (3) The chapter analysis for subchapter 471 is amended by 
     striking the item relating to section 47152 and inserting the 
     following:

``47152. Terms of conveyances.''.

       (4) Section 47153(a) is amended--
       (A) by striking ``gift'' in paragraph (1) and inserting 
     ``conveyance'';
       (B) by striking ``given'' in paragraph (1)(A) and inserting 
     ``conveyed''; and
       (C) by striking ``gift'' in paragraph (1)(B) and inserting 
     ``conveyance''.
       (k) Apportionment for Cargo Only Airports.--Section 
     47114(c)(2)(A) is amended by striking ``2.5 percent'' and 
     inserting ``3 percent''.
       (l) Flexibility in Pavement Design Standards.--Section 
     47114(d) is amended by adding at the end thereof the 
     following:
       ``(4) The Secretary may permit the use of State highway 
     specifications for airfield pavement construction using funds 
     made available under this subsection at non-primary airports 
     with runways of 5,000 feet or shorter serving aircraft that 
     do not exceed 60,000 pounds gross weight, if the Secretary 
     determines that--
       ``(A) safety will not be negatively affected; and
       ``(B) the life of the pavement will not be shorter than it 
     would be if constructed using Administration standards.

     An airport may not seek funds under this subchapter for 
     runway rehabilitation or reconstruction of any such airfield 
     pavement constructed using State highway specifications for a 
     period of 10 years after construction is completed.''.

     SEC. 206. REPEAL OF PERIOD OF APPLICABILITY.

       Section 125 of the Federal Aviation Reauthorization Act of 
     1996 (49 U.S.C. 47114 note) is repealed.

     SEC. 207. 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. 208. PRIORITIZATION OF DISCRETIONARY PROJECTS.

       Section 47120 is amended by--
       (1) inserting ``(a) In General.--'' before ``In''; and
       (2) adding at the end thereof the following:
       ``(b) Discretionary Funding To Be Used for Higher Priority 
     Projects.--The Administrator of the Federal Aviation 
     Administration shall discourage airport sponsors and airports 
     from using entitlement funds for lower priority projects by 
     giving lower priority to discretionary projects submitted by 
     airport sponsors and airports that have used entitlement 
     funds for projects that have a lower priority than the 
     projects for which discretionary funds are being 
     requested.''.

     SEC. 209. PUBLIC NOTICE BEFORE GRANT ASSURANCE REQUIREMENT 
                   WAIVED.

       Notwithstanding any other provision of law to the contrary, 
     the Secretary of Transportation may not waive any assurance 
     required under section 47107 of title 49, United States Code, 
     that requires property to be used for aeronautical purposes 
     unless the Secretary provides notice to the public not less 
     than 30 days before issuing any such waiver. Nothing in this 
     section shall be construed to authorize the Secretary to 
     issue a waiver of any assurance required under that section.

     SEC. 210. DEFINITION OF PUBLIC AIRCRAFT.

       Section 40102(a)(37)(B)(ii) is amended--
       (1) by striking ``or'' at the end of subclause (I);
       (2) by striking the ``States.'' in subclause (II) and 
     inserting ``States; or''; and
       (3) by adding at the end thereof the following:

       ``(III) transporting persons aboard the aircraft if the 
     aircraft is operated for the purpose of prisoner 
     transport.''.

     SEC. 211. TERMINAL DEVELOPMENT COSTS.

       Section 40117 is amended by adding at the end thereof the 
     following:
       ``(j) Shell of Terminal Building.--In order to enable 
     additional air service by an air carrier with less than 50 
     percent of the scheduled passenger traffic at an airport, the 
     Secretary may consider the shell of a terminal building 
     (including heating, ventilation, and air conditioning) to be 
     an eligible airport-related project under subsection 
     (a)(3)(E).''.
                 TITLE III--AMENDMENTS TO AVIATION LAW

     SEC. 301. SEVERABLE SERVICES CONTRACTS FOR PERIODS CROSSING 
                   FISCAL YEARS.

       (a) Chapter 401 is amended by adding at the end thereof the 
     following:

[[Page S10803]]

     ``Sec. 40125. Severable services contracts for periods 
       crossing fiscal years

       ``(a) In General.--The Administrator of the Federal 
     Aviation Administration may enter into a contract for 
     procurement of severable services for a period that begins in 
     one fiscal year and ends in the next fiscal year if (without 
     regard to any option to extend the period of the contract) 
     the contract period does not exceed one year.
       ``(b) Obligation of Funds.--Funds made available for a 
     fiscal year may be obligated for the total amount of a 
     contract entered into under the authority of subsection (a) 
     of this section.''.
       (b) Conforming Amendment.--The chapter analysis for chapter 
     401 is amended by adding at the end thereof the following:

``40125. Severable services contracts for periods crossing fiscal 
              years.''.

     SEC. 302. FOREIGN CARRIERS ELIGIBLE FOR WAIVER UNDER AIRPORT 
                   NOISE AND CAPACITY ACT.

       The first sentence of section 47528(b)(1) is amended by 
     inserting ``or foreign air carrier'' after ``air carrier'' 
     the first place it appears and after ``carrier'' the first 
     place it appears.

     SEC. 303. GOVERNMENT AND INDUSTRY CONSORTIA.

       Section 44903 is amended by adding at the end thereof the 
     following:
       ``(f) Government and Industry Consortia.--The Administrator 
     may establish at airports such consortia of government and 
     aviation industry representatives as the Administrator may 
     designate to provide advice on matters related to aviation 
     security and safety. Such consortia shall not be considered 
     federal advisory committees for purposes of the Federal 
     Advisory Committee Act (5 U.S.C. App.).''.

     SEC. 304. IMPLEMENTATION OF ARTICLE 83 BIS OF THE CHICAGO 
                   CONVENTION.

       Section 44701 is amended--
       (1) by redesignating subsection (e) as subsection (f); and
       (2) by inserting after subsection (d) the following:
       ``(e) Bilateral Exchanges of Safety Oversight 
     Responsibilities.--
       ``(1) Notwithstanding the provisions of this chapter, and 
     pursuant to Article 83 bis of the Convention on International 
     Civil Aviation, the Administrator may, by a bilateral 
     agreement with the aeronautical authorities of another 
     country, exchange with that country all or part of their 
     respective functions and duties with respect to aircraft 
     described in subparagraphs (A) and (B), under the following 
     articles of the Convention:
       ``(A) Article 12 (Rules of the Air).
       ``(B) Article 31 (Certificates of Airworthiness).
       ``(C) Article 32a (Licenses of Personnel).
       ``(2) The agreement under paragraph (1) may apply to--
       ``(A) aircraft registered in the United States operated 
     pursuant to an agreement for the lease, charter, or 
     interchange of the aircraft or any similar arrangement by an 
     operator that has its principal place of business or, if it 
     has no such place of business, its permanent residence in 
     another country; or
       ``(B) aircraft registered in a foreign country operated 
     under an agreement for the lease, charter, or interchange of 
     the aircraft or any similar arrangement by an operator that 
     has its principal place of business or, if it has no such 
     place of business, its permanent residence in the United 
     States.
       ``(3) The Administrator relinquishes responsibility with 
     respect to the functions and duties transferred by the 
     Administrator as specified in the bilateral agreement, under 
     the Articles listed in paragraph (1) of this subsection for 
     United States-registered aircraft transferred abroad as 
     described in subparagraph (A) of that paragraph, and accepts 
     responsibility with respect to the functions and duties under 
     those Articles for aircraft registered abroad that are 
     transferred to the United States as described in subparagraph 
     (B) of that paragraph.
       ``(4) The Administrator may, in the agreement under 
     paragraph (1), predicate the transfer of these functions and 
     duties on any conditions the Administrator deems necessary 
     and prudent.''.

     SEC. 305. FOREIGN AVIATION SERVICES AUTHORITY.

       (a) Reciprocal Waiver of Overflight Fees.--Section 
     45301(a)(1) is amended to read as follows:
       ``(1) Air traffic control and related services provided to 
     aircraft that neither take off from, nor land in, the United 
     States, other than military and civilian aircraft of the 
     United States Government or of a foreign government, except 
     that such fees shall not be imposed on overflights that take 
     off and land in a country contiguous to the United States 
     if--
       ``(A) both the origin and destination of such flights are 
     within that other country;
       ``(B) that country exempts similar categories of flights 
     operated by citizens of the United States from such fees; and
       ``(C) that country exchanges responsibility for air traffic 
     control services with the United States.''.
       (b) Technical Corrections.--Section 45301 is amended--
       (1) by striking ``government.'' in subsection (a)(2) and 
     inserting ``government or to any entity obtaining services 
     outside the United States.'';
       (2) by striking ``directly'' in subsection (b)(1)(B); and
       (3) by striking ``rendered.'' in subsection (b)(1)(B) and 
     inserting ``rendered, including value to the recipient and 
     both direct and indirect costs of overflight-related 
     services, as determined by the Administrator, using generally 
     accepted accounting principles and internationally accepted 
     principles of setting fees for overflight-related 
     services.''.

     SEC. 306. FLEXIBILITY TO PERFORM CRIMINAL HISTORY RECORD 
                   CHECKS; TECHNICAL AMENDMENTS TO PILOT RECORDS 
                   IMPROVEMENT ACT.

       Section 44936 is amended--
       (1) by striking ``subparagraph (C))'' in subsection 
     (a)(1)(B) and inserting ``subparagraph (C), or in the case of 
     passenger, baggage, or property screening at airports, the 
     Administrator decides it is necessary to ensure air 
     transportation security)'';
       (2) by striking ``individual'' in subsection (f)(1)(B)(ii) 
     and inserting ``individual's performance as a pilot''; and
       (3) by inserting ``or from a foreign government or entity 
     that employed the individual,'' in subsection (f)(14)(B) 
     after ``exists,''.

     SEC. 307. AVIATION INSURANCE PROGRAM AMENDMENTS.

       (a) Reimbursement of Insured Party's Subrogee.--Subsection 
     (a) of 44309 is amended--
       (1) by striking the subsection caption and the first 
     sentence, and inserting the following:
       ``(a) Losses.--
       ``(1) A person may bring a civil action in a district court 
     of the United States or in the United States Court of Federal 
     Claims against the United States Government when--
       ``(A) a loss insured under this chapter is in dispute; or
       ``(B)(i) the person is subrogated to the rights against the 
     United States Government of a party insured under this 
     chapter (other than under subsection 44305(b) of this title), 
     under a contract between the person and such insured party; 
     and
       ``(ii) the person has paid to such insured party, with the 
     approval of the Secretary of Transportation, an amount for a 
     physical damage loss that the Secretary of Transportation has 
     determined is a loss covered under insurance issued under 
     this chapter (other than insurance issued under subsection 
     44305(b) of this title).''; and
       (2) by resetting the remainder of the subsection as a new 
     paragraph and inserting ``(2)'' before ``A civil action''.
       (b) Extension of Aviation Insurance Program.--Section 44310 
     is amended by striking ``1998.'' and inserting ``2003.''.

     SEC. 308. TECHNICAL CORRECTIONS TO CIVIL PENALTY PROVISIONS.

       Section 46301 is amended--
       (1) by striking ``46302, 46303, or'' in subsection 
     (a)(1)(A);
       (2) by striking ``individual'' the first time it appears in 
     subsection (d)(7)(A) and inserting ``person''; and
       (3) by inserting ``or the Administrator'' in subsection (g) 
     after ``Secretary''.
                TITLE IV--TITLE 49 TECHNICAL CORRECTIONS

     SEC. 401. RESTATEMENT OF 49 U.S.C. 106(G).

       (a) In General.--Section 106(g) is amended by striking 
     ``40113(a), (c), and (d), 40114(a), 40119, 44501(a) and (c), 
     44502(a)(1), (b) and (c), 44504, 44505, 44507, 44508, 44511-
     44513, 44701-44716, 44718(c), 44721(a), 44901, 44902, 
     44903(a)-(c) and (e), 44906, 44912, 44935-44937, and 44938(a) 
     and (b), chapter 451, sections 45302-45304,'' and inserting 
     ``40113(a), (c)-(e), 40114(a), and 40119, and chapter 445 
     (except sections 44501(b), 44502(a)(2)-(4), 44503, 44506, 
     44509, 44510, 44514, and 44515), chapter 447 (except sections 
     44717, 44718(a) and (b), 44719, 44720, 44721(b), 44722, and 
     44723), chapter 449 (except sections 44903(d), 44904, 44905, 
     44907-44911, 44913, 44915, and 44931-44934), chapter 451, 
     chapter 453, sections''.
       (b) Technical Correction.--The amendment made by this 
     section may not be construed as making a substantive change 
     in the language replaced.

     SEC. 402. RESTATEMENT OF 49 U.S.C. 44909.

       Section 44909(a)(2) is amended by striking ``shall'' and 
     inserting ``should''.

     SEC. 403. TYPOGRAPHICAL ERRORS.

       (a) Section 15904.-- Section 15904(c)(1) is amended by 
     inserting ``section'' before ``15901(b)''.
       (b) Chapter 491.--Chapter 491 is amended--
       (1) by striking ``1996'' in section 49106(b)(1)(F) and 
     inserting ``1986'';
       (2) by striking ``by the board'' in section 49106(c)(3) and 
     inserting ``to the board'';
       (3) by striking ``subchapter II'' in section 49107(b) and 
     inserting ``subchapter III''; and
       (4) by striking ``retention of '' in section 49111(b) and 
     inserting ``retention by''.
       (c) Schedule of Repealed Laws.--The Schedule of Laws 
     Repealed in section 5(b) of the Act of November 20, 1997 
     (Public Law 105-102; 111 Stat. 2217), is amended by striking 
     ``1996'' the first place it appears and inserting ``1986''.
       (d) Amendments Effective As of Earlier Date of Enactment.--
     The amendments made by subsections (a), (b), and (c) are 
     effective as of November 20, 1997.
       (e) Correction of Error in Technical Corrections Act.--
     Effective October 11, 1996, section 5(45)(A) of the Act of 
     October 11, 1996 (Public Law 104-287, 110 Stat. 3393), is 
     amended by striking ``ENFORCEMENT;'' and inserting 
     ``ENFORCEMENT:''.
                         TITLE V--MISCELLANEOUS

     SEC. 501. OVERSIGHT OF FAA RESPONSE TO YEAR 2000 PROBLEM.

       The Administrator of the Federal Aviation Administration 
     shall report to the Senate Committee on Commerce, Science, 
     and Transportation and the House Committee on Transportation 
     and Infrastructure every 3 months, in oral or written form, 
     on electronic data processing problems associated with the 
     year 2000 within the Administration.

     SEC. 502. CARGO COLLISION AVOIDANCE SYSTEMS DEADLINE.

       (a) In General.--The Administrator of the Federal Aviation 
     Administration shall require by regulation that, not later 
     than December 31, 2002, collision avoidance equipment be 
     installed

[[Page S10804]]

     on each cargo aircraft with a payload capacity of 15,000 
     kilograms or more.
       (b) Extension.--The Administrator may extend the deadline 
     imposed by subsection (a) for not more than 2 years if the 
     Administrator finds that the extension is needed to promote--
       (1) a safe and orderly transition to the operation of a 
     fleet of cargo aircraft equipped with collision avoidance 
     equipment; or
       (2) other safety or public interest objectives.
       (c) Collision Avoidance Equipment.--For purposes of this 
     section, the term ``collision avoidance equipment'' means 
     TCAS II equipment (as defined by the Administrator), or any 
     other similar system approved by the Administration for 
     collision avoidance purposes.

     SEC. 503. RUNWAY SAFETY AREAS.

       Within 6 months after the date of enactment of this Act, 
     the Administrator of the Federal Aviation Administration 
     shall initiate rulemaking to amend the regulations in part 
     139 of title 14, Code of Federal Regulation--
       (1) to improve runway safety areas; and
       (2) to require the installation of precision approach path 
     indicators.

     SEC. 504. AIRPLANE EMERGENCY LOCATORS.

       (a) Requirement.--Section 44712(b) is amended to read as 
     follows:
       ``(b) Nonapplication.--Subsection (a) does not apply to 
     aircraft when used in--
       ``(1) flight operations related to the design and testing, 
     manufacture, preparation, and delivery of aircraft; or
       ``(2) the aerial application of a substance for an 
     agricultural purpose.''.
       (b) Effective Date; Regulations.--
       (1) Regulations.--The Secretary of Transportation shall 
     promulgate regulations under section 44712(b) of title 49, 
     United States Code, as amended by subsection (a) not later 
     than January 1, 2002.
       (2) Effective date.--The amendment made by subsection (a) 
     shall take effect on January 1, 2002.

     SEC. 505. COUNTERFEIT AIRCRAFT PARTS.

       (a) Denial of Certificate.--Section 44703 is amended by 
     adding at the end thereof the following:
       ``(g) Certificate Denied for Dealing in Counterfeit 
     Parts.--The Administrator may not issue a certificate to 
     anyone convicted of a violation of any Federal or State law 
     relating to the installation, production, repair, or sale of 
     a counterfeit or falsely-represented aviation part or 
     material.''.
       (b) Revocation of Certificate.--Section 44710 is amended by 
     adding at the end thereof the following:
       ``(g) Revocation for Dealing in Counterfeit Parts.--The 
     Administrator shall revoke a certificate issued to anyone 
     convicted of a violation of any Federal or State law relating 
     to the installation, production, repair, or sale of a 
     counterfeit or falsely-represented aviation part or 
     material.''.
       (c) Prohibition on Employment.--Section 44711 is amended by 
     adding at the end thereof the following:
       ``(c) Prohibition on Employment of Convicted Counterfeit 
     Part Dealers.--No person subject to this chapter may employ 
     anyone to perform a function related to the procurement, 
     sale, production, or repair of a part or material, or the 
     installation of a part into a civil aircraft, who has been 
     convicted of a violation of any Federal or State law relating 
     to the installation, production, repair, or sale of a 
     counterfeit or falsely-represented aviation part or 
     material.''.

     SEC. 506. FAA MAY FINE UNRULY PASSENGERS.

       (a) In General.--Chapter 463 is amended by redesignating 
     section 46316 as section 46317, and by inserting after 
     section 46315 the following:

     ``Sec.  46316. Interference with cabin or flight crew

       ``(a) In General.--An individual who interferes with the 
     duties or responsibilities of the flight crew or cabin crew 
     of a civil aircraft, or who poses an imminent threat to 
     the safety of the aircraft or other individuals on the 
     aircraft, is liable to the United States Government for a 
     civil penalty of not more than $10,000, which shall be 
     paid to the Federal Aviation Administration and deposited 
     in the account established by section 45303(c).
       ``(b) Compromise and Setoff.--
       ``(1) The Secretary of Transportation or the Administrator 
     may compromise the amount of a civil penalty imposed under 
     subsection (a).
       ``(2) The Government may deduct the amount of a civil 
     penalty imposed or compromised under this section from 
     amounts it owes the individual liable for the penalty.''.
       (b) Conforming Change.--The chapter analysis for chapter 
     463 is amended by striking the item relating to section 46316 
     and inserting after the item relating to section 46315 the 
     following:

``46316. Interference with cabin or flight crew.
``46317. General criminal penalty when specific penalty not 
              provided.''.

     SEC. 507. HIGHER INTERNATIONAL STANDARDS FOR HANDICAPPED 
                   ACCESS.

       The Secretary of Transportation shall work with appropriate 
     international organizations and the aviation authorities of 
     other nations to bring about their establishment of higher 
     standards for accommodating handicapped passengers in air 
     transportation, particularly with respect to foreign air 
     carriers that code-share with domestic air carriers.

     SEC. 508. CONVEYANCES OF UNITED STATES GOVERNMENT LAND.

       (a) In General.--Section 47125(a) is amended to read as 
     follows:
       ``(a) Conveyances to Public Agencies.--Except as provided 
     in subsection (b) of this section, the Secretary of 
     Transportation--
       ``(1) shall request the head of the department, agency, or 
     instrumentality owning or controlling land or airspace to 
     convey a property interest in the land or airspace to the 
     public agency sponsoring the project or owning or controlling 
     the airport when necessary to carry out a project under this 
     subchapter at a public airport, to operate a public airport, 
     or for the future development of an airport under the 
     national plan of integrated airport systems; and
       ``(2) may request the head of such a department, agency, or 
     instrumentality to convey a property interest in the land or 
     airspace to a public agency for a use that will complement, 
     facilitate, or augment airport development, including the 
     development of additional revenue from both aviation and 
     nonaviation sources if the Secretary--
       ``(A) determines that the property is no longer needed for 
     aeronautical purposes;
       ``(B) determines that the property will be used to generate 
     revenue for the public airport;
       ``(C) provides preliminary notice to the head of such 
     department, agency, or instrumentality at least 30 days 
     before making the request;
       ``(D) provides an opportunity for notice to the public on 
     the request; and
       ``(E) includes in the request a written justification for 
     the conveyance.''.
       (b) Application to Existing Conveyances.--The provisions of 
     section 47125(a)(2), as amended by subsection (a) apply to 
     property interests conveyed under section 47125 of that title 
     before, on, or after the date of enactment of this Act, 
     section 516 of the Airport and Airway Improvement Act of 
     1982, section 23 of the Airport and Airway Development Act of 
     1970, or section 16 of the Federal Airport Act. For purposes 
     of this section, the Secretary of Transportation (or the 
     predecessor of the Secretary) shall be deemed to have met the 
     requirements of subparagraphs (C), (D), and (E) of section 
     47125(a)(2) of such title, as so amended, for any such 
     conveyance before the date of enactment of this Act.

     SEC. 509. FLIGHT OPERATIONS QUALITY ASSURANCE RULES.

       Not later than 90 days after the date of enactment of this 
     Act, the Administrator shall issue a notice of proposed 
     rulemaking to develop procedures to protect air carriers and 
     their employees from civil enforcement action under the 
     program known as Flight Operations Quality Assurance. Not 
     later than 1 year after the last day of the period for public 
     comment provided for in the notice of proposed rulemaking, 
     the Administrator shall issue a final rule establishing those 
     procedures.

     SEC. 510. WIDE AREA AUGMENTATION SYSTEM.

       (a) Plan.--The Administrator shall identify or develop a 
     plan to implement WAAS to provide navigation and landing 
     approach capabilities for civilian use and make a 
     determination as to whether a backup system is necessary. 
     Until the Administrator determines that WAAS is the sole 
     means of navigation, the Administration shall continue to 
     develop and maintain a backup system.''.
       (b) Report.--Within 6 months after the date of enactment of 
     this Act, the Administrator shall--
       (1) report to the Senate Committee on Commerce, Science, 
     and Transportation and the House of Representatives Committee 
     on Transportation and Infrastructure, on the plan developed 
     under subsection (a);
       (2) submit a timetable for implementing WAAS; and
       (3) make a determination as to whether WAAS will ultimately 
     become a primary or sole means of navigation and landing 
     approach capabilities.
       (c) WAAS Defined.--For purposes of this section, the term 
     ``WAAS'' means wide area augmentation system.
       (d) Funding Authorization.--There are authorized to be 
     appropriated to the Secretary of Transportation such sums as 
     may be necessary to carry out this subsection.

     SEC. 511. REGULATION OF ALASKA AIR GUIDES.

       The Administrator shall reissue the notice to operators 
     originally published in the Federal Register on January 2, 
     1998, which advised Alaska guide pilots of the applicability 
     of part 135 of title 14, Code of Federal Regulations, to 
     guide pilot operations. In reissuing the notice, the 
     Administrator shall provide for not less than 60 days of 
     public comment on the Federal Aviation Administration action. 
     If, notwithstanding the public comments, the Administrator 
     decides to proceed with the action, the Administrator shall 
     publish in the Federal Register a notice justifying the 
     Administrator's decision and providing at least 90 days for 
     compliance.

     SEC. 512. APPLICATION OF FAA REGULATIONS.

       Section 40113 is amended by adding at the end thereof the 
     following:
       ``(f) Application of Certain Regulations to Alaska.--In 
     amending title 14, Code of Federal Regulations, in a manner 
     affecting intrastate aviation in Alaska, the Administrator of 
     the Federal Aviation Administration shall consider the extent 
     to which Alaska is not served by transportation modes other 
     than aviation, and shall establish such regulatory 
     distinctions as the Administrator considers appropriate.''.

     SEC. 513. HUMAN FACTORS PROGRAM.

       (a) In General.--Chapter 445 is amended by adding at the 
     end thereof the following:

     ``Sec.  44516. Human factors program

       ``(a) Oversight Committee.--The Administrator of the 
     Federal Aviation Administration shall establish an advanced 
     qualification program oversight committee to advise the 
     Administrator on the development and execution of Advanced 
     Qualification Programs for air carriers under this section, 
     and to encourage their adoption and implementation.
       ``(b) Human Factors Training.--
       ``(1) Air traffic controllers.--The Administrator shall--
       ``(A) address the problems and concerns raised by the 
     National Research Council in its report `The Future of Air 
     Traffic Control' on air traffic control automation; and

[[Page S10805]]

       ``(B) respond to the recommendations made by the National 
     Research Council.
       ``(2) Pilots and flight crews.--The Administrator shall 
     work with the aviation industry to develop specific training 
     curricula, within 12 months after the date of enactment of 
     the Wendell H. Ford National Air Transportation System 
     Improvement Act of 1998, to address critical safety problems, 
     including problems of pilots--
       ``(A) in recovering from loss of control of the aircraft, 
     including handling unusual attitudes and mechanical 
     malfunctions;
       ``(B) in deviating from standard operating procedures, 
     including inappropriate responses to emergencies and 
     hazardous weather;
       ``(C) in awareness of altitude and location relative to 
     terrain to prevent controlled flight into terrain; and
       ``(D) in landing and approaches, including nonprecision 
     approaches and go-around procedures.
       ``(c) Accident Investigations.--The Administrator, working 
     with the National Transportation Safety Board and 
     representatives of the aviation industry, shall establish a 
     process to assess human factors training as part of accident 
     and incident investigations.
       ``(d) Test Program.--The Administrator shall establish a 
     test program in cooperation with United States air carriers 
     to use model Jeppesen approach plates or other similar tools 
     to improve nonprecision landing approaches for aircraft.
       ``(e) Advanced Qualification Program Defined.--For purposes 
     of this section, the term `advanced qualification program' 
     means an alternative method for qualifying, training, 
     certifying, and ensuring the competency of flight crews and 
     other commercial aviation operations personnel subject to the 
     training and evaluation requirements of Parts 121 and 135 of 
     title 14, Code of Federal Regulations.''.
       (b) Automation and Associated Training.--The Administrator 
     shall complete the Administration's updating of training 
     practices for automation and associated training requirements 
     within 12 months after the date of enactment of this Act.
       (c) Conforming Amendment.--The chapter analysis for chapter 
     445 is amended by adding at the end thereof the following:

``44516. Advanced qualification program.''.

     SEC. 514. INDEPENDENT VALIDATION OF FAA COSTS AND 
                   ALLOCATIONS.

       (a) Independent Assessment.--
       (1) Initiation.--Not later than 90 days after the date of 
     enactment of this Act, the Inspector General of the 
     Department of Transportation shall initiate the analyses 
     described in paragraph (2). In conducting the analyses, the 
     Inspector General shall ensure that the analyses are carried 
     out by 1 or more entities that are independent of the Federal 
     Aviation Administration. The Inspector General may use the 
     staff and resources of the Inspector General or may contract 
     with independent entities to conduct the analyses.
       (2) Assessment of adequacy and accuracy of faa cost data 
     and attributions.--To ensure that the method for capturing 
     and distributing the overall costs of the Federal Aviation 
     Administration is appropriate and reasonable, the Inspector 
     General shall conduct an assessment that includes the 
     following:
       (A)(i) Validation of Federal Aviation Administration cost 
     input data, including an audit of the reliability of Federal 
     Aviation Administration source documents and the integrity 
     and reliability of the Federal Aviation Administration's data 
     collection process.
       (ii) An assessment of the reliability of the Federal 
     Aviation Administration's system for tracking assets.
       (iii) An assessment of the reasonableness of the Federal 
     Aviation Administration's bases for establishing asset values 
     and depreciation rates.
       (iv) An assessment of the Federal Aviation Administration's 
     system of internal controls for ensuring the consistency and 
     reliability of reported data to begin immediately after full 
     operational capability of the cost accounting system.
       (B) A review and validation of the Federal Aviation 
     Administration's definition of the services to which the 
     Federal Aviation Administration ultimately attributes its 
     costs, and the methods used to identify direct costs 
     associated with the services.
       (C) An assessment and validation of the general cost pools 
     used by the Federal Aviation Administration, including the 
     rationale for and reliability of the bases on which the 
     Federal Aviation Administration proposes to allocate costs of 
     services to users and the integrity of the cost pools as well 
     as any other factors considered important by the Inspector 
     General. Appropriate statistical tests shall be performed to 
     assess relationships between costs in the various cost pools 
     and activities and services to which the costs are attributed 
     by the Federal Aviation Administration.
       (b) Deadline.--The independent analyses described in this 
     section shall be completed no later than 270 days after the 
     contracts are awarded to the outside independent contractors. 
     The Inspector General shall submit a final report combining 
     the analyses done by its staff with those of the outside 
     independent contractors to the Secretary of Transportation, 
     the Administrator, the Committee on Commerce, Science, and 
     Transportation of the Senate, and the Committee on 
     Transportation and Infrastructure of the House of 
     Representatives. The final report shall be submitted by the 
     Inspector General not later than 300 days after the award of 
     contracts.
       (c) Funding.--There are authorized to be appropriated such 
     sums as may be necessary for the cost of the contracted audit 
     services authorized by this section.

     SEC. 515. WHISTLEBLOWER PROTECTION FOR FAA EMPLOYEES.

       Section 347(b)(1) of Public Law 104-50 (49 U.S.C. 106, 
     note) is amended by striking ``protection;'' and inserting 
     ``protection, including the provisions for investigations and 
     enforcement as provided in chapter 12 of title 5, United 
     States Code;''.

     SEC. 516. REPORT ON MODERNIZATION OF OCEANIC ATC SYSTEM.

       The Administrator of the Federal Aviation Administration 
     shall report to the Congress on plans to modernize the 
     oceanic air traffic control system, including a budget for 
     the program, a determination of the requirements for 
     modernization, and, if necessary, a proposal to fund the 
     program.

     SEC. 517. REPORT ON AIR TRANSPORTATION OVERSIGHT SYSTEM.

       Beginning in 1999, the Administrator of the Federal 
     Aviation Administration shall report biannually to the 
     Congress on the air transportation oversight system program 
     announced by the Administration on May 13, 1998, in detail on 
     the training of inspectors, the number of inspectors using 
     the system, air carriers subject to the system, and the 
     budget for the system.

     SEC. 518. RECYCLING OF EIS.

       Notwithstanding any other provision of law to the contrary, 
     the Secretary of Transportation may authorize the use, in 
     whole or in part, of a completed environmental assessment or 
     environmental impact study for a new airport construction 
     project that is substantially similar in nature to one 
     previously constructed pursuant to the completed 
     environmental assessment or environmental impact study in 
     order to avoid unnecessary duplication of expense and effort, 
     and any such authorized use shall meet all requirements of 
     Federal law for the completion of such an assessment or 
     study.

     SEC. 519. PROTECTION OF EMPLOYEES PROVIDING AIR SAFETY 
                   INFORMATION.

       (a) General Rule.--Chapter 421 of title 49, United States 
     Code, is amended by adding at the end the following new 
     subchapter:

           ``SUBCHAPTER III--WHISTLEBLOWER PROTECTION PROGRAM

     ``Sec. 42121. Protection of employees providing air safety 
       information

       ``(a) Discrimination Against Airline Employees.--No air 
     carrier or contractor or subcontractor of an air carrier may 
     discharge an employee of the air carrier or the contractor or 
     subcontractor of an air carrier or otherwise discriminate 
     against any such employee with respect to compensation, 
     terms, conditions, or privileges of employment because the 
     employee (or any person acting pursuant to a request of the 
     employee)--
       ``(1) provided, caused to be provided, or is about to 
     provide or cause to be provided to the Federal Government 
     information relating to any violation or alleged violation of 
     any order, regulation, or standard of the Federal Aviation 
     Administration or any other provision of Federal law relating 
     to air carrier safety under this subtitle or any other law of 
     the United States;
       ``(2) has filed, caused to be filed, or is about to file or 
     cause to be filed a proceeding relating to any violation or 
     alleged violation of any order, regulation, or standard of 
     the Federal Aviation Administration or any other provision of 
     Federal law relating to air carrier safety under this 
     subtitle or any other law of the United States;
       ``(3) testified or will testify in such a proceeding; or
       ``(4) assisted or participated or is about to assist or 
     participate in such a proceeding.
       ``(b) Department of Labor Complaint Procedure.--
       ``(1) Filing and notification.--
       ``(A) In general.--In accordance with this paragraph, a 
     person may file (or have a person file on behalf of that 
     person) a complaint with the Secretary of Labor if that 
     person believes that an air carrier or contractor or 
     subcontractor of an air carrier discharged or otherwise 
     discriminated against that person in violation of subsection 
     (a).
       ``(B) Requirements for filing complaints.--A complaint 
     referred to in subparagraph (A) may be filed not later than 
     90 days after an alleged violation occurs. The complaint 
     shall state the alleged violation.
       ``(C) Notification.--Upon receipt of a complaint submitted 
     under subparagraph (A), the Secretary of Labor shall notify 
     the air carrier, contractor, or subcontractor named in the 
     complaint and the Administrator of the Federal Aviation 
     Administration of the--
       ``(i) filing of the complaint;
       ``(ii) allegations contained in the complaint;
       ``(iii) substance of evidence supporting the complaint; and
       ``(iv) opportunities that are afforded to the air carrier, 
     contractor, or subcontractor under paragraph (2).
       ``(2) Investigation; preliminary order.--
       ``(A) In general.--
       ``(i) Investigation.--Not later than 60 days after receipt 
     of a complaint filed under paragraph (1) and after affording 
     the person named in the complaint an opportunity to submit to 
     the Secretary of Labor a written response to the complaint 
     and an opportunity to meet with a representative of the 
     Secretary to present statements from witnesses, the Secretary 
     of Labor shall conduct an investigation and determine whether 
     there is reasonable cause to believe that the complaint has 
     merit and notify in writing the complainant and the person 
     alleged to have committed a violation of subsection (a) of 
     the Secretary's findings.
       ``(ii) Order.--Except as provided in subparagraph (B), if 
     the Secretary of Labor concludes that there is reasonable 
     cause to believe that a violation of subsection (a) has 
     occurred, the Secretary shall accompany the findings referred 
     to in clause (i) with a preliminary order providing the 
     relief prescribed under paragraph (3)(B).
       ``(iii) Objections.--Not later than 30 days after the date 
     of notification of findings under

[[Page S10806]]

     this paragraph, the person alleged to have committed the 
     violation or the complainant may file objections to the 
     findings or preliminary order and request a hearing on the 
     record.
       ``(iv) Effect of filing.--The filing of objections under 
     clause (iii) shall not operate to stay any reinstatement 
     remedy contained in the preliminary order.
       ``(v) Hearings.--Hearings conducted pursuant to a request 
     made under clause (iii) shall be conducted expeditiously. If 
     a hearing is not requested during the 30-day period 
     prescribed in clause (iii), the preliminary order shall be 
     deemed a final order that is not subject to judicial review.
       ``(B) Requirements.--
       ``(i) Required showing by complainant.--The Secretary of 
     Labor shall dismiss a complaint filed under this subsection 
     and shall not conduct an investigation otherwise required 
     under subparagraph (A) unless the complainant makes a prima 
     facie showing that any behavior described in paragraphs (1) 
     through (4) of subsection (a) was a contributing factor in 
     the unfavorable personnel action alleged in the complaint.
       ``(ii) Showing by employer.--Notwithstanding a finding by 
     the Secretary that the complainant has made the showing 
     required under clause (i), no investigation otherwise 
     required under subparagraph (A) shall be conducted if the 
     employer demonstrates, by clear and convincing evidence, that 
     the employer would have taken the same unfavorable personnel 
     action in the absence of that behavior.
       ``(iii) Criteria for determination by Secretary.--The 
     Secretary may determine that a violation of subsection (a) 
     has occurred only if the complainant demonstrates that any 
     behavior described in paragraphs (1) through (4) of 
     subsection (a) was a contributing factor in the unfavorable 
     personnel action alleged in the complaint.
       ``(iv) Prohibition.--Relief may not be ordered under 
     subparagraph (A) if the employer demonstrates by clear and 
     convincing evidence that the employer would have taken the 
     same unfavorable personnel action in the absence of that 
     behavior.
       ``(3) Final order.--
       ``(A) Deadline for issuance; settlement agreements.--
       ``(i) In general.--Not later than 120 days after conclusion 
     of a hearing under paragraph (2), the Secretary of Labor 
     shall issue a final order that--

       ``(I) provides relief in accordance with this paragraph; or
       ``(II) denies the complaint.

       ``(ii) Settlement agreement.--At any time before issuance 
     of a final order under this paragraph, a proceeding under 
     this subsection may be terminated on the basis of a 
     settlement agreement entered into by the Secretary of Labor, 
     the complainant, and the air carrier, contractor, or 
     subcontractor alleged to have committed the violation.
       ``(B) Remedy.--If, in response to a complaint filed under 
     paragraph (1), the Secretary of Labor determines that a 
     violation of subsection (a) has occurred, the Secretary of 
     Labor shall order the air carrier, contractor, or 
     subcontractor that the Secretary of Labor determines to have 
     committed the violation to--
       ``(i) take action to abate the violation;
       ``(ii) reinstate the complainant to the former position of 
     the complainant and ensure the payment of compensation 
     (including back pay) and the restoration of terms, 
     conditions, and privileges associated with the employment; 
     and
       ``(iii) provide compensatory damages to the complainant.
       ``(C) Costs of complaint.--If the Secretary of Labor issues 
     a final order that provides for relief in accordance with 
     this paragraph, the Secretary of Labor, at the request of the 
     complainant, shall assess against the air carrier, 
     contractor, or subcontractor named in the order an amount 
     equal to the aggregate amount of all costs and expenses 
     (including attorney and expert witness fees) reasonably 
     incurred by the complainant (as determined by the 
     Secretary of Labor) for, or in connection with, the 
     bringing of the complaint that resulted in the issuance of 
     the order.
       ``(D) Frivolous complaints.--If the Secretary of Labor 
     finds that a complaint brought under paragraph (1) is 
     frivolous or was brought in bad faith, the Secretary of Labor 
     may award to the prevailing employer a reasonable attorney 
     fee in an amount not to exceed $5,000.
       ``(4) Review.--
       ``(A) Appeal to court of appeals.--
       ``(i) In general.--Not later than 60 days after a final 
     order is issued under paragraph (3), a person adversely 
     affected or aggrieved by that order may obtain review of the 
     order in the United States court of appeals for the circuit 
     in which the violation allegedly occurred or the circuit in 
     which the complainant resided on the date of that violation.
       ``(ii) Requirements for judicial review.--A review 
     conducted under this paragraph shall be conducted in 
     accordance with chapter 7 of title 5. The commencement of 
     proceedings under this subparagraph shall not, unless ordered 
     by the court, operate as a stay of the order that is the 
     subject of the review.
       ``(B) Limitation on collateral attack.--An order referred 
     to in subparagraph (A) shall not be subject to judicial 
     review in any criminal or other civil proceeding.
       ``(5) Enforcement of order by secretary of labor.--
       ``(A) In general.--If an air carrier, contractor, or 
     subcontractor named in an order issued under paragraph (3) 
     fails to comply with the order, the Secretary of Labor may 
     file a civil action in the United States district court for 
     the district in which the violation occurred to enforce that 
     order.
       ``(B) Relief.--In any action brought under this paragraph, 
     the district court shall have jurisdiction to grant any 
     appropriate form of relief, including injunctive relief and 
     compensatory damages.
       ``(6) Enforcement of order by parties.--
       ``(A) Commencement of action.--A person on whose behalf an 
     order is issued under paragraph (3) may commence a civil 
     action against the air carrier, contractor, or subcontractor 
     named in the order to require compliance with the order. The 
     appropriate United States district court shall have 
     jurisdiction, without regard to the amount in controversy or 
     the citizenship of the parties, to enforce the order.
       ``(B) Attorney fees.--In issuing any final order under this 
     paragraph, the court may award costs of litigation (including 
     reasonable attorney and expert witness fees) to any party if 
     the court determines that the awarding of those costs is 
     appropriate.
       ``(c) Mandamus.--Any nondiscretionary duty imposed by this 
     section shall be enforceable in a mandamus proceeding brought 
     under section 1361 of title 28.
       ``(d) Nonapplicability To Deliberate Violations.--
     Subsection (a) shall not apply with respect to an employee of 
     an air carrier, or contractor or subcontractor of an air 
     carrier who, acting without direction from the air carrier 
     (or an agent, contractor, or subcontractor of the air 
     carrier), deliberately causes a violation of any requirement 
     relating to air carrier safety under this subtitle or any 
     other law of the United States.''.
       (b) Conforming Amendment.--The chapter analysis for chapter 
     421 of title 49, United States Code, is amended by adding at 
     the end the following:

           ``SUBCHAPTER III--WHISTLEBLOWER PROTECTION PROGRAM

``42121. Protection of employees providing air safety information.''.

       (c) Civil Penalty.--Section 46301(a)(1)(A) of title 49, 
     United States Code, is amended by striking ``subchapter II of 
     chapter 421,'' and inserting ``subchapter II or III of 
     chapter 421,''.
                TITLE VI--AVIATION COMPETITION PROMOTION

     SEC. 601. PURPOSE.

       The purpose of this title is to facilitate, through a 4-
     year pilot program, incentives and projects that will help up 
     to 40 communities or consortia of communities to improve 
     their access to the essential airport facilities of the 
     national air transportation system through public-private 
     partnerships and to identify and establish ways to overcome 
     the unique policy, economic, geographic, and marketplace 
     factors that may inhibit the availability of quality, 
     affordable air service to small communities.

     SEC. 602. ESTABLISHMENT OF SMALL COMMUNITY AVIATION 
                   DEVELOPMENT PROGRAM.

       Section 102 is amended by adding at the end thereof the 
     following:
       ``(g) Small Community Air Service Development Program.--
       ``(1) Establishment.--The Secretary shall establish a 4-
     year pilot aviation development program to be administered by 
     a program director designated by the Secretary.
       ``(2) Functions.--The program director shall--
       ``(A) function as a facilitator between small communities 
     and air carriers;
       ``(B) carry out section 41743 of this title;
       ``(C) carry out the airline service restoration program 
     under sections 41744, 41745, and 41746 of this title;
       ``(D) ensure that the Bureau of Transportation Statistics 
     collects data on passenger information to assess the service 
     needs of small communities;
       ``(E) work with and coordinate efforts with other Federal, 
     State, and local agencies to increase the viability of 
     service to small communities and the creation of aviation 
     development zones; and
       ``(F) provide policy recommendations to the Secretary and 
     the Congress that will ensure that small communities have 
     access to quality, affordable air transportation services.
       ``(3) Reports.--The program director shall provide an 
     annual report to the Secretary and the Congress beginning in 
     1999 that--
       ``(A) analyzes the availability of air transportation 
     services in small communities, including, but not limited to, 
     an assessment of the air fares charged for air transportation 
     services in small communities compared to air fares charged 
     for air transportation services in larger metropolitan areas 
     and an assessment of the levels of service, measured by types 
     of aircraft used, the availability of seats, and scheduling 
     of flights, provided to small communities;
       ``(B) identifies the policy, economic, geographic and 
     marketplace factors that inhibit the availability of quality, 
     affordable air transportation services to small communities; 
     and
       ``(C) provides policy recommendations to address the 
     policy, economic, geographic, and marketplace factors 
     inhibiting the availability of quality, affordable air 
     transportation services to small communities.''.

     SEC. 603. COMMUNITY-CARRIER AIR SERVICE PROGRAM.

       (a) In General.--Subchapter II 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, in 
     such form as the program director designated by the Secretary 
     under section 102(g) may require, and submit the assessment 
     and service proposal to the program director.
       ``(b) Selection of Participants.--In selecting community 
     programs for participation in the

[[Page S10807]]

     communities program under subsection (a), the program 
     director shall apply criteria, including geographical 
     diversity and the presentation of unique circumstances, that 
     will demonstrate the feasibility of the program.
       ``(c) Carriers Program.--The program director 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 program director shall 
     work with small communities and air carriers, taking into 
     account their proposals and needs, to facilitate the 
     initiation of service. The program director--
       ``(1) may work with communities to develop innovative means 
     and incentives for the initiation of service;
       ``(2) may obligate funds appropriated under section 604 of 
     the Wendell H. Ford National Air Transportation System 
     Improvement Act of 1998 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;
       ``(5) take such other action under this chapter as may be 
     appropriate.
       ``(e) Limitations.--
       ``(1) Community support.--The program director may not 
     provide financial assistance under subsection (c)(2) to any 
     community unless the program director 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 program director may not obligate more 
     than $30,000,000 of the amounts appropriated under 604 of the 
     Wendell H. Ford National Air Transportation System 
     Improvement Act of 1998 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 program director 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 program director designated by 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 program director 
     may--
       ``(1) out of amounts appropriated under section 604 of the 
     Wendell H. Ford National Air Transportation System 
     Improvement Act of 1998, 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 program director 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) providing policy recommendations to the Secretary to 
     stimulate 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) Eligibility.--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 Wendell H. Ford National Air Transportation 
     System Improvement Act of 1998.

     ``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 purposes of title VI of the Wendell H. Ford National Air 
     Transportation System Improvement Act of 1998; 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.

[[Page S10808]]

       ``(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 chapter 
     417 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. 604. AUTHORIZATION OF APPROPRIATIONS.

       To carry out sections 41743 through 41746 of title 49, 
     United States Code, for the 4 fiscal year period beginning 
     with fiscal year 1999, there are authorized to be 
     appropriated to the Secretary of Transportation not more than 
     $10,000,000. To carry out such sections for the 4 fiscal year 
     period beginning with fiscal year 1999, not more than 
     $20,000,000 shall be made available to the Secretary for 
     obligation and expenditure out of the account established 
     under section 45303(a) in addition to the amounts authorized 
     to be appropriated under the preceding sentence.

     SEC. 605. MARKETING PRACTICES.

       Section 41712 is amended by--
       (1) inserting ``(a) In General.--'' before ``On''; and
       (2) adding at the end thereof the following:
       ``(b) Marketing Practices That Adversely Affect Service to 
     Small or Medium Communities.--Within 180 days after the date 
     of enactment of the Wendell H. Ford National Air 
     Transportation System Improvement Act of 1998, the Secretary 
     shall review the marketing practices of air carriers that may 
     inhibit the availability of quality, affordable air 
     transportation services to small and medium-sized 
     communities, including--
       ``(1) marketing arrangements between airlines and travel 
     agents;
       ``(2) code-sharing partnerships;
       ``(3) computer reservation system displays;
       ``(4) gate arrangements at airports;
       ``(5) exclusive dealing arrangments; and
       ``(6) any other marketing practice that may have the same 
     effect.
       ``(c) Regulations.--If the Secretary finds, after 
     conducting the review required by subsection (b), that 
     marketing practices inhibit the availability of such service 
     to such communities, then, after public notice and an 
     opportunity for comment, the Secretary shall promulgate 
     regulations that address the problem.''.

     SEC. 606. SLOT EXEMPTIONS FOR NONSTOP REGIONAL JET SERVICE.

       (a) In General.--Section 41714 is amended by adding at the 
     end thereof the following:
       ``(j) Slots for Nonstop Jet Service Exemption.--
       ``(1) In general.--Within 90 days after receiving an 
     application for an exemption to provide nonstop regional jet 
     air service between--
       ``(A) an airport that is smaller than a large hub airport 
     (as defined in section 47134(d)(2)); and
       ``(B) a high density airport subject to the exemption 
     authority under subsection (a),

     the Secretary shall grant or deny the exemption in accordance 
     with established principles of safety and the promotion of 
     competition.
       ``(2) Existing slots taken into account.--In deciding to 
     grant or deny the exemption, the Secretary may take into 
     consideration the slots already used by the applicant.
       ``(3) Conditions.--The Secretary may grant an exemption to 
     an air carrier under paragraph (1)--
       ``(A) for a period of not less than 12 months;
       ``(B) for a minimum of 2 daily roundtrip flights; and
       ``(C) for a maximum of 3 daily roundtrip flights.
       ``(4) Change of nonhub, small hub, or medium hub airport; 
     jet aircraft.--The Secretary may, upon application made by an 
     air carrier operating under an exemption granted under 
     paragraph (1)--
       ``(A) authorize the air carrier to upgrade its service 
     under the exemption to a larger jet aircraft; and
       ``(B) authorize an air carrier operating under such an 
     exemption to change the nonhub airport or small hub airport 
     for which the exemption was granted to provide the same 
     service to a different airport that is smaller than a large 
     hub airport (as defined in section 47134(d)(2)) if--
       ``(i) the air carrier has been operating under the 
     exemption for a period of not less than 12 months; and
       ``(ii) the air carrier can demonstrate unmitigatable 
     losses.
       ``(5) Forefeiture for misuse.--Any exemption granted under 
     paragraph (1) 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.
       ``(6) Restoration of air service.--To the extent that--
       ``(A) slots were withdrawn from an air carrier under 
     subsection (b) of this section;
       ``(B) the withdrawal of slots under that subsection 
     resulted in a net loss of slots; and
       ``(C) the net loss of slots resulting from the withdrawal 
     had an adverse effect on service to nonhub airports and in 
     other domestic markets,

     the Secretary shall give priority consideration to the 
     request of any air carrier from which slots were withdrawn 
     under that section for an equivalent number of slots at the 
     airport where the slots were withdrawn.
       ``(7) Priority to new entrants and limited incumbent 
     carriers.--In assigning slots under this subsection the 
     Secretary shall, in conjunction with paragraph (5), give 
     priority consideration to an application from an air carrier 
     that, as of July 1, 1998, held fewer than 20 slots at the 
     high density airport for which it filed an exemption 
     application.''.
       (b) Definitions.--Subsection (h) of section 41714 is 
     amended by--
       (1) by striking ``The term'' in paragraph (1) and inserting 
     ``Except as provided in paragraph (5), the term''; and
       (2) adding at the end thereof the following:
       ``(5) Nonstop jet exemption definitions.--Any term used in 
     subsection (j) that is defined in section 41762 has the 
     meaning given that term by section 41762.''.
       (c) Slot Withdrawal Not To Affect Nonhub Service.--Section 
     41714, as amended by subsection (a), is amended by adding at 
     the end thereof the following:
       ``(k) Slot Withdrawal May Not Affect Nonhub Service.--The 
     Secretary may not withdraw a slot from a United States air 
     carrier under this section in order to provide a slot to a 
     foreign air carrier for purposes of international air 
     transportation unless the Secretary finds that--
       ``(1) the withdrawal of that slot from the United States 
     air carrier will not adversely affect air service to nonhub 
     airports; and
       ``(2) United States air carriers seeking slots for purposes 
     of international air transportation at an airport in the home 
     country of that foreign air carrier receive reciprocal 
     treatment by the government of that country.''.

     SEC. 607. SECRETARY SHALL GRANT EXEMPTIONS TO PERIMETER RULE.

       (a) In General.--Section 41714(d) is amended by adding at 
     the end thereof the following:
       ``(3) Beyond-perimeter exemptions.--The Secretary of 
     Transportation shall by order grant exemptions from the 
     application of sections 49109 and 49111(e) to air carriers to 
     operate limited frequencies and aircraft on select routes 
     between Ronald Reagan Washington National Airport and 
     domestic hub airports of such carriers and exemptions from 
     the requirements of subparts K and S of part 93, Code of 
     Federal Regulations, if the Secretary finds that the 
     exemptions will--
       ``(A) provide air transportation service with domestic 
     network benefits in areas beyond the perimeter described in 
     that section; and
       ``(B) increase competition in multiple markets.
       ``(4) Within-perimeter exemptions.--The Secretary of 
     Transportation shall by order grant exemptions from the 
     requirements of section 49111(e) and subparts K and S of part 
     93 of title 14, Code of Federal Regulations, to commuter air 
     carriers for service to airports smaller than large hub 
     airports (as defined in section 47134(d)(2)) within the 
     perimeter established for civil aircraft operations at Ronald 
     Reagan Washington National Airport. The Secretary shall 
     develop criteria for distributing slots for flights within 
     the perimeter to airports other than large hubs under this 
     paragraph in a manner consistent with the promotion of air 
     transportation.
       ``(5) Limitations.--
       ``(A) Aircraft.--An exemption granted under paragraph (3) 
     or (4) may not be granted with respect to any aircraft that 
     is not a Stage 3 aircraft (as defined by the Secretary).
       ``(B) Number and type of operations.--The Secretary shall 
     grant exemptions under paragraph (3) and (4) that--
       ``(i) will result in 12 new daily air carrier slots at such 
     airport for long-haul service beyond the perimeter;
       ``(ii) will result in 12 new daily commuter slots at such 
     airport; and
       ``(iii) will not result in new daily commuter slots for 
     service to any within-the-perimeter airport that is not 
     smaller than a large hub airport (as defined in section 
     47134(d)(2)).
       ``(C) Hours of operation.--In granting exemptions under 
     paragraphs (3) and (4), the Secretary shall distribute the 24 
     new daily slots fairly evenly across the hours between 7:00 
     a.m. and 9:59 p.m., so that--
       ``(i) not more than 2 slots per hour shall be added during 
     9 of the hours beginning during that period; and
       ``(ii) 1 slot per hour shall be added during 6 of the hours 
     beginning during that period.
       ``(6) Protection of incumbent carriers.--An exemption 
     granted under paragraph (3) or (4) may not result in the 
     withdrawal of a slot from any incumbent air carrier at that 
     airport.
       ``(7) Review of safety, environmental, and noise impact.--
     The Secretary--
       ``(A) shall assess the impact of granting exemptions under 
     paragraphs (3) and (4) on the environment (including noise 
     levels) and safety during the first 90 days after the date of 
     enactment of the Wendell H. Ford National Air Transportation 
     System Improvement Act of 1998; and
       ``(B) may not grant an exemption under paragraph (3) or (4) 
     or issue the additional slots during that 90-day period 
     unless the Secretary has conducted such an assessment.''.
       (b) Report.--Within 1 year after the date of enactment of 
     this Act, and biannually thereafter, the Secretary shall 
     certify to the United States Senate Committee on Commerce, 
     Science, and Transportation, the United States House of 
     Representatives Committee on Transportation and 
     Infrastructure, and the Governments of Maryland and Virginia 
     that noise standards, air traffic congestion, airport-related 
     vehicular congestion, safety standards, and adequate air

[[Page S10809]]

     service to communities served by small hub airports and 
     medium hub airports within the perimeter described in section 
     49109 of title 49, United States Code, have been maintained 
     at appropriate levels.

     SEC. 608. ADDITIONAL SLOTS AT CHICAGO'S O'HARE AIRPORT.

       (a) In General.--The Secretary of Transportation may grant 
     100 additional slots under section 41714 of title 49, United 
     States Code, over a 3-year period to air carriers to operate 
     limited frequencies and aircraft on select routes between 
     O'Hare Airport in Chicago, Illinois, and other airports if 
     the Secretary--
       (1) first converts unused military slots at that airport to 
     air carrier slots;
       (2) before granting the additional slots, finds that the 
     additional capacity--
       (A) is available; and
       (B) can be used safely;
       (3) before granting the additional slots, conducts an 
     environmental review; and
       (4) limits the use of the additional slots to Stage 3 
     aircraft (as defined by the Secretary).
       (b) Certain Title 49 Definitions Apply.--Any term used in 
     this section that is defined in chapter 417 of title 49, 
     United States Code, has the meaning given that term in that 
     chapter.

     SEC. 609. CONSUMER NOTIFICATION OF E-TICKET EXPIRATION DATES.

       Section 41712, as amended by section 605 of this Act, is 
     amended by adding at the end thereof the following:
       ``(d) E-ticket Expiration Notice.--It shall be an unfair or 
     deceptive practice under subsection (a) for any air carrier 
     utilizing electronically transmitted tickets to fail to 
     notify the purchaser of such a ticket of its expiration date, 
     if any.''.

     SEC. 610. JOINT VENTURE AGREEMENTS.

       (a) In General.--Subchapter I of chapter 417 is amended by 
     adding at the end the following:

     ``Sec. 41716. Joint venture agreements

       ``(a) Definitions.--In this section--
       ``(1) Joint venture agreement.--The term `joint venture 
     agreement' means an agreement entered into by a major air 
     carrier on or after January 1, 1998, with regard to (A) 
     code-sharing, blocked-space arrangements, long-term wet 
     leases (as defined in section 207.1 of title 14, Code of 
     Federal Regulations) of a substantial number (as defined 
     by the Secretary by regulation) of aircraft, or frequent 
     flyer programs, or (B) any other cooperative working 
     arrangement (as defined by the Secretary by regulation) 
     between 2 or more major air carriers that affects more 
     than 15 percent of the total number of available seat 
     miles offered by the major air carriers.
       ``(2) Major air carrier.--The term `major air carrier' 
     means a passenger air carrier that is certificated under 
     chapter 411 of this title and included in Carrier Group III 
     under criteria contained in section 04 of part 241 of title 
     14, Code of Federal Regulations.
       ``(b) Submission of Joint Venture Agreement.--At least 30 
     days before a joint venture agreement may take effect, each 
     of the major air carriers that entered into the agreement 
     shall submit to the Secretary--
       ``(1) a complete copy of the joint venture agreement and 
     all related agreements; and
       ``(2) other information and documentary material that the 
     Secretary may require by regulation.
       ``(c) Extension of Waiting Period.--
       ``(1) In general.--The Secretary may extend the 30-day 
     period referred to in subsection (b) until--
       ``(A) in the case of a joint venture agreement with regard 
     to code-sharing, the 150th day following the last day of such 
     period; and
       ``(B) in the case of any other joint venture agreement, the 
     60th day following the last day of such period.
       ``(2) Publication of reasons for extension.--If the 
     Secretary extends the 30-day period referred to in subsection 
     (b), the Secretary shall publish in the Federal Register the 
     reasons of the Secretary for making the extension.
       ``(d) Termination of Waiting Period.--At any time after the 
     date of submission of a joint venture agreement under 
     subsection (b), the Secretary may terminate the waiting 
     periods referred to in subsections (b) and (c) with respect 
     to the agreement.
       ``(e) Regulations.--The effectiveness of a joint venture 
     agreement may not be delayed due to any failure of the 
     Secretary to issue regulations to carry out this subsection.
       ``(f) Memorandum To Prevent Duplicative Reviews.--Promptly 
     after the date of enactment of this section, the Secretary 
     shall consult with the Assistant Attorney General of the 
     Antitrust Division of the Department of Justice in order to 
     establish, through a written memorandum of understanding, 
     preclearance procedures to prevent unnecessary duplication of 
     effort by the Secretary and the Assistant Attorney General 
     under this section and the United States antitrust laws, 
     respectively.
       ``(g) Prior Agreements.--With respect to a joint venture 
     agreement entered into before the date of enactment of this 
     section as to which the Secretary finds that--
       ``(1) the parties have submitted the agreement to the 
     Secretary before such date of enactment; and
       ``(2) the parties have submitted any information on the 
     agreement requested by the Secretary,

     the waiting period described in paragraphs (2) and (3) shall 
     begin on the date, as determined by the Secretary, on which 
     all such information was submitted and end on the last day to 
     which the period could be extended under this section.
       ``(h) Limitation on Statutory Construction.--The authority 
     granted to the Secretary under this subsection shall not in 
     any way limit the authority of the Attorney General to 
     enforce the antitrust laws as defined in the first section of 
     the Clayton Act (15 U.S.C. 12).''.
       (b) Conforming Amendment.--The analysis for subchapter I of 
     such chapter is amended by adding at the end the following:

``41716. Joint venture agreements.''.

     SEC. 611. 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 competititve 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. 612. GAO STUDY OF RURAL AIR TRANSPORTATION NEEDS.

       The General Accounting Office, in conjunction with the 
     Federal Aviation Administration, shall conduct a study of the 
     effectiveness of the national air transportation system and 
     its ability to meet the air transportation needs of the 
     United States over the next 15 years. The study shall include 
     airports located in remote communities and reliever airports, 
     and shall assess the effectiveness of the system by reference 
     to criteria that include whether, under the system, each 
     resident of the United States is within a 1-hour drive on 
     primary roads of an airport that has at least one runway of 
     at least 5,500 feet in length at sea-level, or the equivalent 
     altitude-adjusted length.
                 TITLE VII--NATIONAL PARKS OVERFLIGHTS

     SEC. 701. FINDINGS.

       The Congress finds that--
       (1) the Federal Aviation Administration has sole authority 
     to control airspace over the United States;
       (2) the Federal Aviation Administration has the authority 
     to preserve, protect, and enhance the environment by 
     minimizing, mitigating, or preventing the adverse effects of 
     aircraft overflights on the public and tribal lands;
       (3) the National Park Service has the responsibility of 
     conserving the scenery and natural and historic objects and 
     wildlife in national parks and of providing for the enjoyment 
     of the national parks in ways that leave the national parks 
     unimpaired for future generations;
       (4) the protection of tribal lands from aircraft 
     overflights is consistent with protecting the public health 
     and welfare and is essential to the maintenance of the 
     natural and cultural resources of Indian tribes;
       (5) the National Parks Overflights Working Group, composed 
     of general aviation, air tour, environmental, and Native 
     American representatives, recommended that the Congress enact 
     legislation based on its consensus work product; and
       (6) this title reflects the recommendations made by that 
     Group.

     SEC. 702. AIR TOUR MANAGEMENT PLANS FOR NATIONAL PARKS.

       (a) In General.--Chapter 401, as amended by section 301 of 
     this Act, is amended by adding at the end the following:

     ``Sec. 40126. Overflights of national parks

       ``(a) In General.--
       ``(1) General requirements.--A commercial air tour operator 
     may not conduct commercial air tour operations over a 
     national park or tribal lands except--
       ``(A) in accordance with this section;
       ``(B) in accordance with conditions and limitations 
     prescribed for that operator by the Administrator; and
       ``(C) in accordance with any effective air tour management 
     plan for that park or those tribal lands.
       ``(2) Application for operating authority.--
       ``(A) Application required.--Before commencing commercial 
     air tour operations over a national park or tribal lands, a 
     commercial air tour operator shall apply to the Administrator 
     for authority to conduct the operations over that park or 
     those tribal lands.
       ``(B) Competitive bidding for limited capacity parks.--
     Whenever a commercial air tour management plan limits the 
     number of commercial air tour flights over a national park 
     area during a specified time frame, the Administrator, in 
     cooperation with the Director, shall authorize commercial air 
     tour operators to provide such service. The authorization 
     shall specify such terms and conditions as the Administrator 
     and the Director find necessary for management of commercial 
     air tour operations over the national park. The 
     Administrator, in cooperation with the Director, shall 
     develop an open competitive process for evaluating proposals 
     from persons interested in providing commercial air tour 
     services over the national park. In

[[Page S10810]]

     making a selection from among various proposals submitted, 
     the Administrator, in cooperation with the Director, shall 
     consider relevant factors, including--
       ``(i) the safety record of the company or pilots;
       ``(ii) any quiet aircraft technology proposed for use;
       ``(iii) the experience in commercial air tour operations 
     over other national parks or scenic areas;
       ``(iv) the financial capability of the company;
       ``(v) any training programs for pilots; and
       ``(vi) responsiveness to any criteria developed by the 
     National Park Service or the affected national park.
       ``(C) Number of operations authorized.--In determining the 
     number of authorizations to issue to provide commercial air 
     tour service over a national park, the Administrator, in 
     cooperation with the Director, shall take into consideration 
     the provisions of the air tour management plan, the number of 
     existing commercial air tour operators and current level of 
     service and equipment provided by any such companies, and the 
     financial viability of each commercial air tour operation.
       ``(D) Cooperation with nps.--Before granting an application 
     under this paragraph, the Administrator shall, in cooperation 
     with the Director, develop an air tour management plan in 
     accordance with subsection (b) and implement such plan.
       ``(E) Time limit on response to ATMP applications.--The 
     Administrator shall act on any such application and issue a 
     decision on the application not later than 24 months after it 
     is received or amended.
       ``(3) Exception.--Notwithstanding paragraph (1), commercial 
     air tour operators may conduct commercial air tour operations 
     over a national park under part 91 of the Federal Aviation 
     Regulations (14 CFR 91.1 et seq.) if--
       ``(A) such activity is permitted under part 119 (14 CFR 
     119.1(e)(2));
       ``(B) the operator secures a letter of agreement from the 
     Administrator and the national park superintendent for that 
     national park describing the conditions under which the 
     flight operations will be conducted; and
       ``(C) the total number of operations under this exception 
     is limited to not more than 5 flights in any 30-day period 
     over a particular park.
       ``(4) Special rule for safety requirements.--
     Notwithstanding subsection (c), an existing commercial air 
     tour operator shall, not later than 90 days after the date of 
     enactment of the Wendell H. Ford National Air Transportation 
     System Improvement Act of 1998, apply for operating authority 
     under part 119, 121, or 135 of the Federal Aviation 
     Regulations (14 CFR Pt. 119, 121, or 135). A new entrant 
     commercial air tour operator shall apply for such authority 
     before conducting commercial air tour operations over a 
     national park or tribal lands.
       ``(b) Air Tour Management Plans.--
       ``(1) Establishment of atmps.--
       ``(A) In general.--The Administrator shall, in cooperation 
     with the Director, establish an air tour management plan for 
     any national park or tribal land for which such a plan is not 
     already in effect whenever a person applies for authority to 
     operate a commercial air tour over the park. The development 
     of the air tour management plan is to be a cooperative 
     undertaking between the Federal Aviation Administration and 
     the National Park Service. The air tour management plan shall 
     be developed by means of a public process, and the agencies 
     shall develop information and analysis that explains the 
     conclusions that the agencies make in the application of the 
     respective criteria. Such explanations shall be included in 
     the Record of Decision and may be subject to judicial review.
       ``(B) Objective.--The objective of any air tour management 
     plan shall be to develop acceptable and effective measures to 
     mitigate or prevent the significant adverse impacts, if any, 
     of commercial air tours upon the natural and cultural 
     resources and visitor experiences and tribal lands.
       ``(2) Environmental determination.--In establishing an air 
     tour management plan under this subsection, the Administrator 
     and the Director shall each sign the environmental decision 
     document required by section 102 of the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4332) which may 
     include a finding of no significant impact, an environmental 
     assessment, or an environmental impact statement, and the 
     Record of Decision for the air tour management plan.
       ``(3) Contents.--An air tour management plan for a national 
     park--
       ``(A) may prohibit commercial air tour operations in whole 
     or in part;
       ``(B) may establish conditions for the conduct of 
     commercial air tour operations, including commercial air tour 
     routes, maximum or minimum altitudes, time-of-day 
     restrictions, restrictions for particular events, maximum 
     number of flights per unit of time, intrusions on privacy on 
     tribal lands, and mitigation of noise, visual, or other 
     impacts;
       ``(C) shall apply to all commercial air tours within \1/2\ 
     mile outside the boundary of a national park;
       ``(D) shall include incentives (such as preferred 
     commercial air tour routes and altitudes, relief from caps 
     and curfews) for the adoption of quiet aircraft technology by 
     commercial air tour operators conducting commercial air tour 
     operations at the park;
       ``(E) shall provide for the initial allocation of 
     opportunities to conduct commercial air tours if the plan 
     includes a limitation on the number of commercial air tour 
     flights for any time period; and
       ``(F) shall justify and document the need for measures 
     taken pursuant to subparagraphs (A) through (E).
       ``(4) Procedure.--In establishing a commercial air tour 
     management plan for a national park, the Administrator and 
     the Director shall--
       ``(A) initiate at least one public meeting with interested 
     parties to develop a commercial air tour management plan for 
     the park;
       ``(B) publish the proposed plan in the Federal Register for 
     notice and comment and make copies of the proposed plan 
     available to the public;
       ``(C) comply with the regulations set forth in sections 
     1501.3 and 1501.5 through 1501.8 of title 40, Code of Federal 
     Regulations (for purposes of complying with those 
     regulations, the Federal Aviation Administration is the lead 
     agency and the National Park Service is a cooperating 
     agency); and
       ``(D) solicit the participation of any Indian tribe whose 
     tribal lands are, or may be, overflown by aircraft involved 
     in commercial air tour operations over a national park or 
     tribal lands, as a cooperating agency under the regulations 
     referred to in paragraph (4)(C).
       ``(5) Amendments.--Any amendment of an air tour management 
     plan shall be published in the Federal Register for notice 
     and comment. A request for amendment of an air tour 
     management plan shall be made in such form and manner as the 
     Administrator may prescribe.
       ``(c) Interim Operating Authority.--
       ``(1) In general.--Upon application for operating 
     authority, the Administrator shall grant interim operating 
     authority under this paragraph to a commercial air tour 
     operator for a national park or tribal lands for which the 
     operator is an existing commercial air tour operator.
       ``(2) Requirements and limitations.--Interim operating 
     authority granted under this subsection--
       ``(A) shall provide annual authorization only for the 
     greater of--
       ``(i) the number of flights used by the operator to provide 
     such tours within the 12-month period prior to the date of 
     enactment of the Wendell H. Ford National Air Transportation 
     System Improvement Act of 1998; or
       ``(ii) the average number of flights per 12-month period 
     used by the operator to provide such tours within the 36-
     month period prior to such date of enactment, and, for 
     seasonal operations, the number of flights so used during the 
     season or seasons covered by that 12-month period;
       ``(B) may not provide for an increase in the number of 
     operations conducted during any time period by the commercial 
     air tour operator to which it is granted unless the increase 
     is agreed to by the Administrator and the Director;
       ``(C) shall be published in the Federal Register to provide 
     notice and opportunity for comment;
       ``(D) may be revoked by the Administrator for cause;
       ``(E) shall terminate 180 days after the date on which an 
     air tour management plan is established for that park or 
     those tribal lands; and
       ``(F) shall--
       ``(i) promote protection of national park resources, 
     visitor experiences, and tribal lands;
       ``(ii) promote safe operations of the commercial air tour;
       ``(iii) promote the adoption of quiet technology, as 
     appropriate; and
       ``(iv) allow for modifications of the operation based on 
     experience if the modification improves protection of 
     national park resources and values and of tribal lands.
       ``(3) New entrant air tour operators.--
       ``(A) In general.--The Administrator, in cooperation with 
     the Director, may grant interim operating authority under 
     this paragraph to an air tour operator for a national park 
     for which that operator is a new entrant air tour operator if 
     the Administrator determines the authority is necessary to 
     ensure competition in the provision of commercial air tours 
     over that national park or those tribal lands.
       ``(B) Safety limitation.--The Administrator may not grant 
     interim operating authority under subparagraph (A) if the 
     Administrator determines that it would create a safety 
     problem at that park or on tribal lands, or the Director 
     determines that it would create a noise problem at that 
     park or on tribal lands.
       ``(C) ATMP limitation.--The Administrator may grant interim 
     operating authority under subparagraph (A) of this paragraph 
     only if the air tour management plan for the park or tribal 
     lands to which the application relates has not been developed 
     within 24 months after the date of enactment of the Wendell 
     H. Ford National Air Transportation System Improvement Act of 
     1998.
       ``(d) Definitions.--In this section, the following 
     definitions apply:
       ``(1) Commercial air tour.--The term `commercial air tour' 
     means any flight conducted for compensation or hire in a 
     powered aircraft where a purpose of the flight is 
     sightseeing. If the operator of a flight asserts that the 
     flight is not a commercial air tour, factors that can be 
     considered by the Administrator in making a determination of 
     whether the flight is a commercial air tour, include, but are 
     not limited to--
       ``(A) whether there was a holding out to the public of 
     willingness to conduct a sightseeing flight for compensation 
     or hire;
       ``(B) whether a narrative was provided that referred to 
     areas or points of interest on the surface;
       ``(C) the area of operation;
       ``(D) the frequency of flights;
       ``(E) the route of flight;
       ``(F) the inclusion of sightseeing flights as part of any 
     travel arrangement package; or
       ``(G) whether the flight or flights in question would or 
     would not have been canceled based on poor visibility of the 
     surface.
       ``(2) Commercial air tour operator.--The term `commercial 
     air tour operator' means any person who conducts a commercial 
     air tour.
       ``(3) Existing commercial air tour operator.--The term 
     `existing commercial air tour operator' means a commercial 
     air tour operator that was actively engaged in the business 
     of providing commercial air tours over a national park at any 
     time during the 12-month period

[[Page S10811]]

     ending on the date of enactment of the Wendell H. Ford 
     National Air Transportation System Improvement Act of 1998.
       ``(4) New entrant commercial air tour operator.--The term 
     `new entrant commercial air tour operator' means a commercial 
     air tour operator that--
       ``(A) applies for operating authority as a commercial air 
     tour operator for a national park; and
       ``(B) has not engaged in the business of providing 
     commercial air tours over that national park or those tribal 
     lands in the 12-month period preceding the application.
       ``(5) Commercial air tour operations.--The term `commercial 
     air tour operations' means commercial air tour flight 
     operations conducted--
       ``(A) over a national park or within \1/2\ mile outside the 
     boundary of any national park;
       ``(B) below a minimum altitude, determined by the 
     Administrator in cooperation with the Director, above ground 
     level (except solely for purposes of takeoff or landing, or 
     necessary for safe operation of an aircraft as determined 
     under the rules and regulations of the Federal Aviation 
     Administration requiring the pilot-in-command to take action 
     to ensure the safe operation of the aircraft); and
       ``(C) less than 1 mile laterally from any geographic 
     feature within the park (unless more than \1/2\ mile outside 
     the boundary).
       ``(6) National park.--The term `national park' means any 
     unit of the National Park System.
       ``(7) Tribal lands.--The term `tribal lands' means `Indian 
     country', as defined by section 1151 of title 18, United 
     States Code, that is within or abutting a national park.
       ``(8) Administrator.--The term `Administrator' means the 
     Administrator of the Federal Aviation Administration.
       ``(9) Director.--The term `Director' means the Director of 
     the National Park Service.''.
       (b) Exemptions.--
       (1) Grand canyon.--Section 40125 of title 49, United States 
     Code, as added by subsection (a), does not apply to--
       (A) the Grand Canyon National Park; or
       (B) Indian country within or abutting the Grand Canyon 
     National Park.
       (2) Alaska.--The provisions of this title and section 40125 
     of title 49, United States Code, as added by subsection (a), 
     do not apply to any land or waters located in Alaska.
       (c) Clerical Amendment.--The table of sections for chapter 
     401 is amended by adding at the end thereof the following:

``40126. Overflights of national parks.''.

     SEC. 703. ADVISORY GROUP.

       (a) Establishment.--Not later than 1 year after the date of 
     enactment of this Act, the Administrator of the Federal 
     Aviation Administration and the Director of the National Park 
     Service shall jointly establish an advisory group to provide 
     continuing advice and counsel with respect to the operation 
     of commercial air tours over and near national parks.
       (b) Membership.--
       (1) In general.--The advisory group shall be composed of--
       (A) a balanced group of --
       (i) representatives of general aviation;
       (ii) representatives of commercial air tour operators;
       (iii) representatives of environmental concerns; and
       (iv) representatives of Indian tribes;
       (B) a representative of the Federal Aviation 
     Administration; and
       (C) a representative of the National Park Service.
       (2) Ex-officio members.--The Administrator and the Director 
     shall serve as ex-officio members.
       (3) Chairperson.--The representative of the Federal 
     Aviation Administration and the representative of the 
     National Park Service shall serve alternating 1-year terms as 
     chairman of the advisory group, with the representative of 
     the Federal Aviation Administration serving initially until 
     the end of the calendar year following the year in which the 
     advisory group is first appointed.
       (c) Duties.--The advisory group shall provide advice, 
     information, and recommendations to the Administrator and the 
     Director--
       (1) on the implementation of this title;
       (2) on the designation of commonly accepted quiet aircraft 
     technology for use in commercial air tours of national parks 
     or tribal lands, which will receive preferential treatment in 
     a given air tour management plan;
       (3) on other measures that might be taken to accommodate 
     the interests of visitors to national parks; and
       (4) on such other national park or tribal lands-related 
     safety, environmental, and air touring issues as the 
     Administrator and the Director may request.
       (d) Compensation; Support; FACA.--
       (1) Compensation and travel.--Members of the advisory group 
     who are not officers or employees of the United States, while 
     attending conferences or meetings of the group or otherwise 
     engaged in its business, or while serving away from their 
     homes or regular places of business, each member may be 
     allowed travel expenses, including per diem in lieu of 
     subsistence, as authorized by section 5703 of title 5, United 
     States Code, for persons in the Government service employed 
     intermittently.
       (2) Administrative support.--The Federal Aviation 
     Administration and the National Park Service shall jointly 
     furnish to the advisory group clerical and other assistance.
       (3) Nonapplication of faca.--Section 14 of the Federal 
     Advisory Committee Act (5 U.S.C. App.) does not apply to the 
     advisory group.
       (e) Report.--The Administrator and the Director shall 
     jointly report to the Congress within 24 months after the 
     date of enactment of this Act on the success of this title in 
     providing incentives for quiet aircraft technology.

     SEC. 704. OVERFLIGHT FEE REPORT.

       Not later than 180 days after the date of enactment of this 
     Act, the Administrator of the Federal Aviation Administration 
     shall transmit to Congress a report on the effects proposed 
     overflight fees are likely to have on the commercial air tour 
     industry. The report shall include, but shall not be limited 
     to--
       (1) the viability of a tax credit for the commercial air 
     tour operators equal to the amount of the proposed fee 
     charged by the National Park Service; and
       (2) the financial effects proposed offsets are likely to 
     have on Federal Aviation Administration budgets and 
     appropriations.
               TITLE VIII--AVIATION TRUST FUND AMENDMENTS

     SEC. 801. AMENDMENTS TO THE AIRPORT AND AIRWAY TRUST FUND.

       Section 9502(d)(1) of the Internal Revenue Code of 1986 
     (relating to expenditures from Airport and Airway Trust Fund) 
     is amended--
       (1) by striking ``1998,'' and inserting ``2002,''; and
       (2) by striking ``1996;'' in subparagraph (A) and inserting 
     ``1996, or the Wendell H. Ford National Air Transportation 
     System Improvement Act of 1998;''.

  Mr. McCAIN addressed the Chair.
  The PRESIDING OFFICER. The Senator from Arizona is recognized.
  Mr. McCAIN. Madam President, since Senator Ford is not here yet, I 
will not ask for a unanimous consent agreement because I believe he 
would object at this time. But what I do want to do is go over the 
pending amendments, as I know what they are, and urge my colleagues to 
call in within the next half hour or come over with any amendments they 
may have to this bill so that we can get a unanimous consent agreement 
narrowed down on the amendments to the bill.
  The amendments that I now understand would be pending are: McCain-
Ford amendment, which is a managers' amendment, which is 10 minutes 
equally divided; a McCain amendment, which is relevant, 5 minutes 
equally divided; a Hollings amendment, relevant, 5 minutes equally 
divided; a Gorton, relevant amendment, 5 minutes equally divided; a 
Ford amendment, relevant, 5 minutes equally divided; a Bingaman 
amendment, overflights, bolster Native Americans' role, 30 minutes 
equally divided; DeWine sense of Senate, 10 minutes equally divided; 
Dorgan, regional jet tax incentives, 2 hours equally divided; Dorgan, 
mandatory interline and joint fair agreements, 2 hours equally divided; 
Faircloth, sense of the Senate, 5 minutes equally divided; Inhofe, FAA 
emergency revocation power, 10 minutes equally divided; Mikulski-
Sarbanes--two amendments--Reagan National Airport, slots and perimeter 
rule, 30 minutes equally divided; Roth, reintroduce title VIII to the 
bill, 5 minutes equally divided; Thompson, criminal penalties for 
airmen who fly without a certificate, 10 minutes equally divided; 
Torricelli, Quiet Communities Act, S. 951, 1 hour equally divided; 
D'Amato-Moynihan, DOT issue 70 slot exemptions at JFK Airport, 10 
minutes equally divided; Lott-Frist-Moynihan, limit eligible airport 
size for regional jet section and Reagan National commuter slots, 10 
minutes equally divided; Reed of Rhode Island, noise at Rhode Island 
airport, 15 minutes equally divided; Reed of Rhode Island, cost-sharing 
notice, 15 minutes equally divided; Robb, Reagan National Airport, 
slots and perimeter rule, 1 hour equally divided; Snowe, handicapped 
access violations, increase civil penalty, 10 minutes equally divided; 
Snowe, community air service grants, regional distribution, 10 minutes 
equally divided; Warner, prohibit new Reagan National slots and 
perimeter rule exemptions until Washington Metropolitan Airport 
Authority nominees confirmed by the Senate, 1 hour equally divided; 
Warner, notice, comment, and hearings before proceeding with Reagan 
National slots and perimeter rule exemptions.
  If there are additional amendments to the bill, I would urge my 
colleagues to send them over so that sometime within the next hour we 
could try to initially propose a unanimous consent agreement at least 
to narrow down the list of amendments.
  Madam President, I want to make clear to my colleagues the importance 
of this legislation and why we need to resolve it as quickly as we 
possibly can. Today is the 23rd of September, 1998. If we do not get a 
bill into conference and back and passed by the 1st of October, at 
least $2 billion worth of moneys out of the airport trust fund/

[[Page S10812]]

aviation trust fund will not be allowed to move forward, and also there 
are many letters of intent that entail hundreds of millions more.
  Madam President, we all know how important aviation is to America. We 
all know how important it is for us to move forward with the ever 
growing air traffic in the United States of America.
  Madam President, I rise in support of S. 2279, the Wendell H. Ford 
National Air Transportation System Improvement Act of 1998. Today, I 
will be offering a manager's amendment to the bill as reported by the 
Commerce Committee on July 14, 1998. This bill, as modified by the 
manager's amendment, has the support of Committee Ranking Member 
Senator Hollings, Aviation Subcommittee Chairman Gorton, Aviation 
Subcommittee Ranking Member Senator Ford, and myself. As I indicated on 
the floor last week, this is a ``must-pass'' piece of legislation which 
includes critical aviation projects such as safety, security, capacity 
and noise projects at airports across the Nation.
  Madam President, if the Congress does not pass legislation to 
reauthorize the programs of the Federal Aviation Administration (FAA), 
the FAA will be prohibited from issuing grants to airports in every 
state, regardless of whether the transportation appropriations bill is 
signed into law. Therefore, we must act to reauthorize the programs of 
the FAA before we leave this year.
  I would like to highlight three areas of importance which this bill 
addresses. First and foremost, it reauthorizes the FAA and Airport 
Improvement Program, AIP. Second, the bill contains essential 
provisions to promote a competitive aviation industry. Last but not 
least, it will protect the environment in our national parks from the 
harmful effects of excessive commercial air tour overflights. I have 
worked long and hard on all of these issues. And many of these long and 
hard times have been spent with Senator Ford, the Senator from 
Kentucky.
  This bill provides a two-year authorization for most programs of the 
FAA including FAA Operations, Facilities and Equipment, and AIP, the 
Airport Improvement Plan. Research, Engineering and Development (RE&D) 
programs have already been authorized for FY 1999 by separate 
legislation that was signed into law on February 11, 1998. S. 2279 
authorizes the AIP at $2.4 billion for Fiscal Year 1999.
  The legislation also includes funding for aviation security. Two 
years ago, the Congress passed the 1996 FAA reauthorization bill which 
contained numerous provisions designed to improve security at our 
nation's airlines and airports. These provisions included accelerating 
deployment of the latest explosive detection systems; enhancing 
passenger screening processes; requiring criminal history record checks 
on screeners; and requiring regular joint threat assessments and 
testing baggage match procedures. While these provisions have helped 
secure our airlines and airports, the legislation before us builds upon 
the security foundation we established 2 years ago.

  Madam President, S. 2279 legislation also includes several provisions 
to enhance competition in the airline industry. On October 29, 1997, I 
introduced the Aviation Competition Enhancement Act of 1997, S. 1331. 
The purpose of this bill was to further deregulate our domestic 
aviation system for the the benefit of travelers and communities, by 
promoting more convenient options and competitive air fares for 
travelers. According to the General Accounting Office report of October 
1996, several factors have limited entry at many airports. These 
factors include the dominance of routes to and from the four slot 
controlled airports by one or two established airlines. In April 1996, 
the Department of Transportation conducted a study that estimated that 
almost 40 percent of domestic passengers traveled in markets with low 
fare competition, saving consumers an estimated $6.3 billion annually 
in airline fares.
  Due to the interest of other Senators to increase competition in the 
airline industry, I worked with Senators Frist and Lott on a substitute 
to Senator Frist's competition legislation, S. 1353, which the Commerce 
Committee also reported out of Committee on July 14, 1998. These 
provisions are also included in the bill that is now before us.
  The competition provisions--and I would like to again give great 
credit to Senators Frist and Lott--have three main elements. First, 
they would provide slot exemptions for nonstop regional jets to fly to 
and from so-called underserved communities and the four slot-controlled 
airports--Reagan National, O'Hare, LaGuardia, and JFK--would create 12 
new round-trip flights at Ronald Reagan Washington National Airport, 
and provide limited exemptions to the perimeter rule at Reagan National 
and finally, would add additional slots at Chicago O'Hare. I will 
comment on each of these provisions.
  The slot exemptions for nonstop regional jets must be approved by the 
Secretary of Transportation for service between a nonhub airport and a 
small hub airport and the high density airports which are O'Hare, 
LaGuardia, and JFK.
  At Reagan National, the legislation would create 6 new daily round-
trip flights beyond the 1,250-mile perimeter, a federally imposed 
restriction, and 6 new daily round-trip flights to under-served markets 
within the perimeter. Carriers can only use Stage 3 aircraft that meet 
strict noise requirements in the new slots. The new service will result 
in only one or two new flights per hour at the airport.

  At Chicago O'Hare, the legislation as reported by the Commerce 
Committee would provide discretionary authority to the Secretary of 
Transportation to convert up to 100 unused military slots to air-
carrier slots over three years at Chicago's O'Hare Airport. Due to 
concerns raised by some Senators, however, I have worked on a 
compromise regarding additional flights at O'Hare. Under the agreement 
which is included in the managers amendment we are offering today, the 
Secretary of Transportation would be directed to allocate 30 new daily 
take-off and landing slots over the next three years. Specifically, 
eighteen slots would provide service to under-served communities, and 
twelve slots would be available for general distribution.
  I would now like to address those members of the Senate who have 
concerns about the possible increase in noise at O'Hare and Reagan 
National due to the increase in slots. The aircraft that operate in 
these new slots would be required to operated Stage 3 aircraft only. 
Stage 3 aircraft is the quietest technology available today. The entire 
domestic fleet is in the process of converting from Stage 2 aircraft to 
the significantly quieter Stage 3 aircraft. Currently, the fleet is 75 
percent Stage 3. By 2000, thanks to legislation previously passed, it 
must become 100 percent Stage 3. Once the fleet becomes 100 percent 
Stage 3, the noise impact on areas surrounding airports will drop 
significantly.
  At Reagan National, the FAA has already stated that the phaseout of 
Stage 2 aircraft will have a significant impact on noise at the 
airport. Therefore, adding a few more flights of quieter Stage 3 
aircraft certainly should not cause noise levels to approach what they 
are today.
  At O'Hare, before granting any of the exemptions, the Secretary is to 
study and report on the environmental considerations that are 
associated with the flights that would utilize the additional 
exemptions, including determining that there is no significant increase 
in noise. I want to repeat: including the Secretary must determine that 
there is no significant increase in noise. The Secretary must certify 
that sufficient capacity is available at O'Hare to accommodate the 
additional flights, and that the exemptions can be used safely.
  Prior to issuing any of the slot exemptions, the Secretary is to 
provide 30-days public notice in the Federal Register. Furthermore, the 
Secretary is to consult with local officials on the noise and 
environmental issues surrounding granting of the exemptions. At the end 
of three years, the Secretary will again study and report on how 
safety, the environment, noise, access to underserved markets 
throughout the country, and competition at Chicago O'Hare have been 
impacted by the new exemptions.

  Meanwhile, the revised bill will direct the Secretary to study and 
report on the community noise levels in the areas surrounding the four 
high density airports O'Hare, Reagan National, LaGuardia and JFK, once 
the national 100-percent State 3 requirement comes into effect in 2000. 
Among other things,

[[Page S10813]]

the report is to compare community noise levels since enactment of the 
Stage 3 aircraft fleet requirements in the 1990 Airport Noise and 
Capacity Act. The report will also offer suggestions on improving the 
noise impact of these airports.
  In summary, Madam President, this legislation represents over a 
year's work by the Commerce Committee and the Aviation Subcommittee. I 
cannot overemphasize the need to move quickly on this bill. As the end 
of the second session of the 105th Congress comes to an end, we cannot 
run the risk of the bill getting caught up in unrelated, politically-
charged issues. This bill will have to be conferenced with the House, 
and we need to take the time to move through the appropriate process.
  Before I conclude my remarks, I would like to comment on an important 
issue that is not being addressed in this bill--although I considered 
offering an amendment on the subject. The issue concerns the abuse of 
familiarization training programs at the FAA. Such programs authorize 
FAA employees to have free access to cockpit or cabin seating on 
commercial flights. Cockpit access is designed to provide these 
employees an opportunity to gain firsthand experience in the 
operational characteristics of various types of aircraft, to directly 
interface with cockpit crews and air traffic controllers, and to gain 
insight into the FAA's systems' performance.
  A February 1996 audit by the Department of Transportation's Office of 
Inspector General found that some FAA employees violated standards of 
ethical conduct by using their familiarization privileges to fulfill 
personal travel agendas and take vacations. The IG essentially found 
that FAA oversight and control of the familiarization programs was 
inadequate. Despite the fact that the IG recommended that the FAA 
establish stronger guidelines and internal controls with regard to 
these training programs, it is my understanding that they still are not 
adequately managed.
  Despite my concerns, I am not calling for elimination of appropriate 
training programs that provide valuable insight and experience for FAA 
employees. Taxpayers simply want to be assured that such program are 
being used only for legitimate training purposes and not being abused 
for personal gain, by managers and controllers alike. Unfortunately, 
the ride-along privilege seems to have evolved from a legitimate 
training tool into a personnel perk that is easily subject to abuse.
  I recently wrote to Secretary Slater and Administrator Garvey about 
this matter. I strongly urged the FAA to review each of the 
recommendations contained in the 1996 IG report. Without strong 
oversight and control of these familiarization programs, they will 
remain open to abuse. It is inappropriate for FAA employees to use 
these training programs for personal travel. This issue is particularly 
troublesome because it involves taking advantage of an industry the FAA 
is responsible for regulating. Therefore, I urged the FAA to take every 
action to stop the abuse of these programs and establish guidelines for 
their proper use.
  It is my understanding that the FAA, working with the DOT-IG, has set 
forth a plan to take decisive action to prevent further abuse of 
familiarization programs. I hope that changes are implemented 
immediately. I will continue to follow this issue very closely.
  Madam President, my message to the FAA is we should not have to pass 
a law in order to prevent the abuse of a relatively important training 
program. Clean up your act and restore the Congress' and the American 
people's confidence in this program or we will have to act. Sometimes 
when we act legislatively there are unintended consequences, as well as 
intended consequences.
  Returning to the matter of the legislation at hand, I urge all of my 
colleagues to support passage of S. 2279. We cannot adjourn for the 
year without taking final action on this important legislation. If we 
fail to act, the FAA's hands will be tied and they will be unable to 
address needed security and safety issues in every State in the Nation.
  Madam President, about a week ago I included in the Record the 
amounts of money that will be allocated to each State to take care of 
or begin to address many of their aviation requirements. At a later 
time, I will include that again in the Record.
  The last thing we want is a disruption of not only the funding, but 
also the ongoing safety measures that are a part of this bill and that 
are a follow-on to the legislation that the Senator from Kentucky had 
to deal with a couple years ago.
  I urge my colleagues, again, to call in their amendments. We will 
include them in a unanimous consent agreement which we will try to 
propound. I understand that there is an important function this evening 
which will require the Senate to go out around 6 o'clock. I would like 
to try, at the least, to get our agenda refined by that time.
  I know that the Senator from Kentucky has remarks, so I yield the 
floor.
  Mr. FORD addressed the Chair.
  The PRESIDING OFFICER. The Senator from Kentucky is recognized.
  Mr. FORD. I thank my friend, Senator McCain, chairman of the 
Commerce, Science, and Transportation Committee. I compliment him on 
his remarks. I think he fully and fairly explained the legislation that 
is before the Senate. One of the things I want to reiterate that he 
stated is that every State in this Nation has a vital part in this 
piece of legislation as it relates to air transportation, not only 
domestically but internationally. It is important. We are talking, I 
think, in the neighborhood of approximately $10 billion per year. It is 
so important, as the chairman has said, that we work hard and quickly 
on this bill so that we might pass it prior to adjournment. I would 
hate to see this piece of legislation caught up in a continuing 
resolution that would generally turn into a ``Christmas tree.''

  So, Madam President, before us today is S. 2279, a bill that my good 
friend, Senator Ted Stevens, and this committee named after me. I hope 
having that name on it won't prevent it from moving expeditiously. It 
is an honor to have a piece of legislation named after a Member, and I 
thank the Senator from Alaska for his friendship and his kindness.
  As many of my colleagues know, this bill is a ``must'' pass bill. 
Without it, the FAA and our nation's airports can not continue to build 
to meet future needs. I have watched over my career as airports in 
Louisville, Cincinnati, Owensboro, Hazard and may other places in my 
State, have benefited from the work of the FAA. We all have seen the 
growth in aviation throughout the country and, yes, throughout the 
world. Denver, for example, was a pipe dream for many years. Today, it 
is a vital part of the aviation system.
  Past Administrators, like Linda Daschle, and Secretaries, like Sam 
Skinner, have also realized how critical aviation is to our economy. In 
naming these two individuals, I do not mean to exclude the many fine 
individuals who have held those posts.
  The Administrator today, Jane Garvey, and the Secretary, Rodney 
Slater, have seen first hand how important airport improvements are to 
our communities.
  I had hoped, in my last FAA reauthorization bill, that we could have 
done more. In 1996, along with Senator McCain  and others, we tried to 
set a course to reforming the FAA. We worked through difficult issues 
together, and produced a good road map for the FAA. One piece remains 
missing--funding. There will be options that will be debated next 
year--a fee system, taking the Airport and Airways Trust Fund off 
budget, or keeping the current system. As long as you can ensure that 
the FAA has the money it needs to modernize and meet the future needs 
of the traveling public, you will succeed.
  Today, we will lay down a managers' amendment. We have been working 
on it ever since the FAA bill was reported by the Commerce Committee. 
Many issues of concern of the Members have been addressed. Some remain 
unresolved.
  I want to make clear that there are a few provisions that still need 
some work. Clarification of intent will be important.
  The bill today does two critical things--it gives the FAA a road map 
to improve safety and to make sure that communities that have not 
benefitted from airline deregulation have a chance to improve airline 
services.

[[Page S10814]]

  I have heard the Chair's distinguished colleague, who is on our 
Commerce Committee, talk about the air transportation problems in small 
communities in their area. I am hopeful that in this piece of 
legislation we moved in the right direction to help those communities 
that have not benefited from airline deregulation and have a chance to 
improve their services. I will talk more about the small community 
needs later.
  As I said earlier, I think Senator McCain explained the bill very 
well and very fairly. I am hopeful that colleagues on my side will be 
more than willing to accept the managers' amendment and will be Henry 
Clay-like--that is, in the mood of compromise--as we move into the 
amendments that are not quite ready to be agreed to.
  I am hopeful that we will be limited to maybe five or six votes and 
then final passage. If we can do that, then that will be a real victory 
for the legislative process. I want to express a special thanks to the 
staff on both sides who have worked so hard since this bill was 
introduced to work out many of the amendments that were being proposed 
and suggested.
  I think we come today with a package that is almost there. I am sure 
that once we get into the five or six amendments that might be 
contentious, we will be able to work it out. Even now, as we are 
bringing this piece of legislation to the floor, staff are working to 
see if they can reach an agreement on the final pieces of legislation. 
I agree with my colleague, Senator McCain, that we are hopeful that 
between now and roughly 6 p.m., we will know how many amendments will 
be brought to this piece of legislation, how many would need a vote, 
and how many we would need to discuss. We are hopeful that we can be 
very close at the end of the day to getting this bill prepared to pass 
here tomorrow and send it to conference, so that we can include this 
must-pass bill in our agenda before we leave here somewhere around 
October 9.
  Again, I thank my colleague for all of his hard work. He is a pretty 
tenacious fellow. When there are things that he believes should be 
done, even though he may not have a majority with him at that time, 
look out, here he comes. So we are down to five or six amendments, I 
believe, and we are still working to try to see if an accommodation can 
be made, because when we are talking about the transportation and the 
industrial development, those things are so important to this country 
and our ability to move in the international sphere that we must pass 
this bill before we leave here.
  So I am ready to work. I will meet with our colleagues any time. Our 
staffs are prepared to meet, and we will do whatever is necessary to 
spend the time to work out these final few amendments. Before we leave 
here this afternoon, I look forward to having some kind of a finite 
list, if we can get it, of those that we will be considering in the 
next 24 hours.
  Madam President, I thank the chairman for his courtesy and the time. 
I yield the floor.
  Mr. McCAIN. Madam President, again, I thank the Senator from 
Kentucky. I argue that if I possess any legislative skills, a major 
part of the reason for that is that I learned from a master for several 
years. I was privileged to serve as the ranking member of the Aviation 
Subcommittee of which the distinguished Senator from Kentucky was the 
chairman. I watched the Senator from Kentucky masterfully, with 
enormous skill and bipartisanship, pass several pieces of landmark 
legislation. He did it in a way that I will always remember, and he did 
it even though issues may have been rather controversial, and he did it 
without rancor. I believe that the contributions that he has made to 
aviation in America will be remembered long past his time here in the 
U.S. Senate.
  Madam President, we do have a managers' amendment, which I will bring 
forward in just a minute, as we attempt to get amendments. By the way, 
I also know that there are Members, especially from the States of 
Maryland, Virginia, Illinois and New York, who have very strongly held 
views on this issue, and I welcome their presence on the floor to help 
educate me and Senator Ford further on their views and the impact of 
this legislation on their airports and surrounding communities.
  Mr. FORD. Madam President, I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The assistant legislative clerk proceeded to call the roll.
  Mr. BYRD. Madam President, I ask unanimous consent that the order for 
the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. BYRD addressed the Chair.
  The PRESIDING OFFICER. The Senator from West Virginia is recognized.

                          ____________________