[Congressional Record Volume 144, Number 129 (Thursday, September 24, 1998)]
[Senate]
[Pages S10929-S10931]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                          AMENDMENTS SUBMITTED

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

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               TORRICELLI (AND OTHERS) AMENDMENT NO. 3627

  Mr. TORRICELLI (for himself, Mr. Lautenberg, Mr. D'Amato, Mr. 
Moynihan, Mr. Wellstone, and Mr. Robb) proposed an amendment to the 
bill (S.

[[Page S10930]]

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; as follows:

       At the end, add the following:

                       TITLE ____--NOISE ABATEMENT

     SEC. ____01. SHORT TITLE.

       This title may be cited as the ``Quiet Communities Act of 
     1998''.

     SEC. ____02. FINDINGS.

       Congress finds that--
       (1)(A) for too many citizens of the United States, noise 
     from aircraft, vehicular traffic, and a variety of other 
     sources is a constant source of torment; and
       (B) nearly 20,000,000 citizens of the United States are 
     exposed to noise levels that can lead to psychological and 
     physiological damage, and another 40,000,000 people are 
     exposed to noise levels that cause sleep or work disruption;
       (2)(A) chronic exposure to noise has been linked to 
     increased risk of cardiovascular problems, strokes, and 
     nervous disorders; and
       (B) excessive noise causes sleep deprivation and task 
     interruptions, which pose untold costs on society in 
     diminished worker productivity;
       (3)(A) to carry out the Clean Air Act of 1970 (42 U.S.C. 
     7401 et seq.), the Noise Control Act of 1972 (42 U.S.C. 4901 
     et seq.), and section 8 of the Quiet Communities Act of 1978 
     (92 Stat. 3084), the Administrator of the Environmental 
     Protection Agency established an Office of Noise Abatement 
     and Control;
       (B) the responsibilities of the Office of Noise Abatement 
     and Control included promulgating noise emission standards, 
     requiring product labeling, facilitating the development of 
     low emission products, coordinating Federal noise reduction 
     programs, assisting State and local abatement efforts, and 
     promoting noise education and research; and
       (C) funding for the Office of Noise Abatement and Control 
     was terminated in 1982 and no funds have been provided since;
       (4) because the Administrator of the Environmental 
     Protection Agency remains responsible for enforcing 
     regulations issued under the Noise Control Act of 1972 (42 
     U.S.C. 4901 et seq.) even though funding for the Office of 
     Noise Abatement and Control has been terminated, and because 
     that Act prohibits State and local governments from 
     regulating noise sources in many situations, noise abatement 
     programs across the United States lie dormant;
       (5) as the population grows and air and vehicle traffic 
     continues to increase, noise pollution is likely to become an 
     even greater problem in the future; and
       (6) the health and welfare of the citizens of the United 
     States demands that the Environmental Protection Agency once 
     again assume a role in combating noise pollution.

     SEC. ____03. REESTABLISHMENT OF OFFICE OF NOISE ABATEMENT AND 
                   CONTROL.

       (a) Reestablishment.--
       (1) In general.--The Administrator of the Environmental 
     Protection Agency shall reestablish an Office of Noise 
     Abatement and Control (referred to in this title as the 
     ``Office'').
       (2) Responsibilities.--The Office shall be responsible 
     for--
       (A) coordinating Federal noise abatement activities;
       (B) updating or developing noise standards;
       (C) providing technical assistance to local communities; 
     and
       (D) promoting research and education on the impacts of 
     noise pollution.
       (3) Emphasized approaches.--The Office shall emphasize 
     noise abatement approaches that rely on State and local 
     activity, market incentives, and coordination with other 
     public and private agencies.
       (b) Study.--
       (1) In general.--Not later than 18 months after the date of 
     enactment of this Act, the Administrator of the Environmental 
     Protection Agency shall submit a study on airport noise to 
     Congress and the Federal Aviation Administration.
       (2) Areas of study.--The study shall--
       (A) examine the Federal Aviation Administration's selection 
     of noise measurement methodologies;
       (B) the threshold of noise at which health impacts are 
     felt; and
       (C) the effectiveness of noise abatement programs at 
     airports around the United States.
       (3) Recommendations.--The study shall include specific 
     recommendations to the Federal Aviation Administration on new 
     measures that should be implemented to mitigate the impact of 
     aircraft noise on surrounding communities.

     SEC. ____04. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to carry out this 
     title--
       (1) $5,000,000 for each of fiscal years 1999, 2000, and 
     2001; and
       (2) $8,000,000 for each of fiscal years 2002 and 2003.
                                 ______
                                 

                       DORGAN AMENDMENT NO. 3628

  Mr. DORGAN proposed an amendment to the bill, S. 2279, supra; as 
follows:

       At the appropriate place, insert:

     SEC. ____. TAX CREDIT FOR REGIONAL JET AIRCRAFT SERVING 
                   UNDERSERVED COMMUNITIES.

       (a) Allowance of Credit.--
       (1) In general.--Section 46 of the Internal Revenue Code of 
     1986 (relating to amount of credit) is amended by striking 
     ``and'' at the end of paragraph (2), by striking the period 
     at the end of paragraph (3) and inserting ``, and'', and by 
     inserting after paragraph (3) the following new paragraph:
       ``(4) in the case of an eligible small air carrier, the 
     underserved community jet access credit.''
       (2) Underserved community jet access credit.--Section 48 of 
     such Code (relating to the energy credit and the 
     reforestation credit) is amended by adding after subsection 
     (b) the following new subsection:
       ``(c) Underserved Community Jet Access Credit.--
       ``(1) In general.--For purposes of section 46, the 
     underserved community jet access credit of an eligible small 
     air carrier for any taxable year is an amount equal to 10 
     percent of the qualified investment in any qualified regional 
     jet aircraft.
       ``(2) Eligible small air carrier.--For purposes of this 
     subsection and section 46--
       ``(A) In general.--The term `eligible small air carrier' 
     means, with respect to any qualified regional jet aircraft, 
     an air carrier--
       ``(i) to which part 121 of title 14, Code of Federal 
     Regulations, applies, and
       ``(ii) which has less than 10,000,000,000 (10 billion) 
     revenue passenger miles for the calendar year preceding the 
     calendar year in which such aircraft is originally placed in 
     service.
       ``(B) Air carrier.--The term `air carrier' means any air 
     carrier holding a certificate of public convenience and 
     necessity issued by the Secretary of Transportation under 
     section 41102 of title 49, United States Code.
       ``(C) Start-up carriers.--If an air carrier has not been in 
     operation during the entire calendar year described in 
     subparagraph (A)(ii), the determination under such 
     subparagraph shall be made on the basis of a reasonable 
     estimate of revenue passenger miles for its first full 
     calendar year of operation.
       ``(D) Aggregation.--All air carriers which are treated as 1 
     employer under section 52 shall be treated as 1 person for 
     purposes of subparagraph (A)(ii).
       ``(3) Qualified regional jet aircraft.--For purposes of 
     this subsection, the term `qualified regional jet aircraft' 
     means a civil aircraft--
       ``(A) which is originally placed in service by the 
     taxpayer,
       ``(B) which is powered by jet propulsion and is designed to 
     have a maximum passenger seating capacity of not less than 30 
     passengers and not more than 100 passengers, and
       ``(C) at least 50 percent of the flight segments of which 
     during any 12-month period beginning on or after the date the 
     aircraft is originally placed in service are between a hub 
     airport (as defined in section 41731(a)(13) of title 49, 
     United States Code, and an underserved airport.
       ``(4) Underserved airport.--The term `underserved airport' 
     means, with respect to any qualified regional jet aircraft, 
     an airport which for the calendar year preceding the calendar 
     year in which such aircraft is originally placed in service 
     had less than 600,000 enplanements.
       ``(5) Qualified investment.--For purposes of paragraph (1), 
     the term `qualified investment' means, with respect to any 
     taxable year, the basis of any qualified regional jet 
     aircraft placed in service by the taxpayer during such 
     taxable year.
       ``(6) Qualified progress expenditures.--
       ``(A) Increase in qualified investment.--In the case of a 
     taxpayer who has made an election under subparagraph (E), the 
     amount of the qualified investment of such taxpayer for the 
     taxable year (determined under paragraph (5) without regard 
     to this subsection) shall be increased by an amount equal to 
     the aggregate of each qualified progress expenditure for the 
     taxable year with respect to progress expenditure property.
       ``(B) Progress expenditure property defined.--For purposes 
     of this paragraph, the term `progress expenditure property' 
     means any property which is being constructed for the 
     taxpayer and which it is reasonable to believe will qualify 
     as a qualified regional jet aircraft of the taxpayer when it 
     is placed in service.
       ``(C) Qualified progress expenditures defined.--For 
     purposes of this paragraph, the term `qualified progress 
     expenditures' means the amount paid during the taxable year 
     to another person for the construction of such property.
       ``(D) Only construction of aircraft to be taken into 
     account.--Construction shall be taken into account only if, 
     for purposes of this subpart, expenditures therefor are 
     properly chargeable to capital account with respect to the 
     qualified regional jet aircraft.
       ``(E) Election.--An election under this paragraph may be 
     made at such time and in such manner as the Secretary may by 
     regulations prescribe. Such an election shall apply to the 
     taxable year for which made and to all subsequent taxable 
     years. Such an election, once made, may not be revoked except 
     with the consent of the Secretary.
       ``(7) Coordination with other credits.--This subsection 
     shall not apply to any property with respect to which the 
     energy credit or the rehabilitation credit is allowed unless 
     the taxpayer elects to waive the application of such credits 
     to such property.
       ``(8) Special lease rules.--For purposes of section 
     50(d)(5), section 48(d) (as in effect on the day before the 
     date of the enactment of

[[Page S10931]]

     the Revenue Reconciliation Act of 1990) shall be applied for 
     purposes of this section without regard to paragraph (4)(B) 
     thereof (relating to short-term leases of property with class 
     life of under 14 years).
       ``(9) Application.--This subsection shall apply to periods 
     after the date of the enactment of this subsection and before 
     January 1, 2009, under rules similar to the rules of section 
     48(m) (as in effect on the day before the date of the 
     enactment of the Revenue Reconciliation Act of 1990).''
       (3) Recapture.--Section 50(a) of such Code (relating to 
     recapture in the case of dispositions, etc.) is amended by 
     adding at the end the following new paragraph:
       ``(6) Special rules for aircraft credit.--
       ``(A) In general.--For purposes of determining whether a 
     qualified regional jet aircraft ceases to be investment 
     credit property, an airport which was an underserved airport 
     as of the date such aircraft was originally placed in service 
     shall continue to be treated as an underserved airport during 
     any period this subsection applies to the aircraft.
       ``(B) Property ceases to qualify for progress 
     expenditures.--Rules similar to the rules of paragraph (2) 
     shall apply in the case of qualified progress expenditures 
     for a qualified regional jet aircraft under section 48(c).''
       (4) Technical amendments.--
       (A) Subparagraph (C) of section 49(a)(1) of such Code is 
     amended by striking ``and'' at the end of clause (ii), by 
     striking the period at the end of clause (iii) and inserting 
     ``, and'', and by adding at the end the following new clause:
       ``(iv) the portion of the basis of any qualified regional 
     jet aircraft attributable to any qualified investment (as 
     defined by section 48(c)(5)).''
       (B) Paragraph (4) of section 50(a) of such Code is amended 
     by striking ``and (2)'' and inserting ``, (2), and (6)''.
       (C)(i) The section heading for section 48 of such Code is 
     amended to read as follows:

     ``SEC. 48. OTHER CREDITS.''

       (ii) The table of sections for subpart E of part IV of 
     subchapter A of chapter 1 of such Code is amended by striking 
     the item relating to section 48 and inserting the following 
     new item:

``Sec. 48. Other credits.''

       (5) Effective date.--The amendments made by this subsection 
     shall apply to periods after the date of the enactment of 
     this Act, under rules similar to the rules of section 48(m) 
     of the Internal Revenue Code of 1986 (as in effect on the day 
     before the date of the enactment of the Revenue 
     Reconciliation Act of 1990.
       (b) Reduced Passenger Tax Rate on Rural Domestic Flight 
     Segments.--Section 4261(e)(1)(C) of such Code (relating to 
     segments to and from rural airports) is amended to read as 
     follows:
       ``(C) Reduction in general tax rate.--
       ``(i) In general.--The tax imposed by subsection (a) shall 
     apply to any domestic segment beginning or ending at an 
     airport which is a rural airport for the calendar year in 
     which such segment begins or ends (as the case may be) at the 
     rate determined by the Secretary under clause (ii) for such 
     year in lieu of the rate otherwise applicable under 
     subsection (a).
       ``(ii) Determination of rate.--The rate determined by the 
     Secretary under this clause for each calendar year shall 
     equal the rate of tax otherwise applicable under subsection 
     (a) reduced by an amount which reflects the net amount of the 
     increase in revenues to the Treasury for such year resulting 
     from the amendments made by subsections (a) and (c) of 
     section ____ of the Wendell H. Ford National Air 
     Transportation System Improvement Act of 1998.
       ``(iii) Transportation involving multiple segments.--In the 
     case of transportation involving more than 1 domestic segment 
     at least 1 of which does not begin or end at a rural airport, 
     the rate applicable by reason of clause (i) shall be applied 
     by taking into account only an amount which bears the same 
     ratio to the amount paid for such transportation as the 
     number of specified miles in domestic segments which begin or 
     end at a rural airport bears to the total number of specified 
     miles in such transportation.''.
       (c) Treatment of Certain Deductible Liquidating 
     Distributions of Regulated Investment Companies and Real 
     Estate Investment Trusts.--
       (1) In general.--Section 332 of the Internal Revenue Code 
     of 1986 (relating to complete liquidations of subsidiaries) 
     is amended by adding at the end the following new subsection:
       ``(c) Deductible Liquidating Distributions of Regulated 
     Investment Companies and Real Estate Investment Trusts.--If a 
     corporation receives a distribution from a regulated 
     investment company or a real estate investment trust which is 
     considered under subsection (b) as being in complete 
     liquidation of such company or trust, then, notwithstanding 
     any other provision of this chapter, such corporation shall 
     recognize and treat as a dividend from such company or trust 
     an amount equal to the deduction for dividends paid allowable 
     to such company or trust by reason of such distribution.''.
       (2) Conforming amendments.--
       (A) The material preceding paragraph (1) of section 332(b) 
     of such Code is amended by striking ``subsection (a)'' and 
     inserting ``this section''.
       (B) Paragraph (1) of section 334(b) of such Code is amended 
     by striking ``section 332(a)'' and inserting ``section 332''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to distributions after May 21, 1998.
                                 ______
                                 

                        REED AMENDMENT NO. 3629

  Mr. REED proposed an amendment to the bill, S. 2279, supra; as 
follows:

       At the appropriate place in title II, insert the following:

     SEC. 2____. DISCRETIONARY GRANTS.

       Notwithstanding any limitation on the amount of funds that 
     may be expended for grants for noise abatement, if any funds 
     made available under section 48103 of title 49, United States 
     Code, remain available at the end of the fiscal year for 
     which those funds were made available, and are not allocated 
     under section 47115 of that title, or under any other 
     provision relating to the awarding of discretionary grants 
     from unobligated funds made available under section 48103 of 
     that title, the Secretary of Transportation may use those 
     funds to make discretionary grants for noise abatement 
     activities.

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