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104th Congress                                            Rept. 104-714
                        HOUSE OF REPRESENTATIVES

 2d Session                                                      Part 1
_______________________________________________________________________


 
               FEDERAL AVIATION AUTHORIZATION ACT OF 1996
                                _______
                                

                 July 26, 1996.--Ordered to be printed

                                _______
                                

 Mr. Shuster, from the Committee on Transportation and Infrastructure, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 3539]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Transportation and Infrastructure, to whom 
was referred the bill (H.R. 3539) to amend title 49, United 
States Code, to reauthorize programs of the Federal Aviation 
Administration, and for other purposes, having considered the 
same, report favorably thereon with an amendment and recommend 
that the bill as amended do pass.
  The amendment is as follows:
  Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Federal Aviation 
Authorization Act of 1996''.
  (b) Table of Contents.--
Sec. 1. Short title; table of contents.
Sec. 2. Amendments to title 49, United States Code.
Sec. 3. Applicability.

                TITLE I--REAUTHORIZATION OF FAA PROGRAMS

Sec. 101. Airport improvement program.
Sec. 102. Airway facilities improvement program.
Sec. 103. Operations of FAA.

                TITLE II--AIRPORT DEVELOPMENT FINANCING

Sec. 201. Apportionments.
Sec. 202. Discretionary fund.
Sec. 203. Use of apportioned amounts.
Sec. 204. Designating current and former military airports.
Sec. 205. Select panel on airport and agency financing.

          TITLE III--AIRPORT IMPROVEMENT PROGRAM MODIFICATIONS

Sec. 301. Intermodal planning.
Sec. 302. Compliance with Federal mandates.
Sec. 303. Runway maintenance program.
Sec. 304. Access to airports by intercity buses.
Sec. 305. Cost reimbursement for projects commenced prior to grant 
award.
Sec. 306. Issuance of letters of intent.
Sec. 307. Selection of projects for grants from discretionary fund.
Sec. 308. Small airport fund.
Sec. 309. State block grant program.
Sec. 310. Private ownership of airports.
Sec. 311. Use of noise set-aside funds by non-airport sponsors.

                   TITLE IV--MISCELLANEOUS PROVISIONS

Sec. 401. Purchase of housing units.
Sec. 402. Technical correction relating to State taxation.
Sec. 403. Use of passenger facility fees for debt financing project.
Sec. 404. Protection of voluntarily submitted information.
Sec. 405. Supplemental type certificates.
Sec. 406. Restriction on use of revenues.
Sec. 407. Certification of small airports.
Sec. 408. Discretionary authority for criminal history records checks.
Sec. 409. Imposition of fees.
Sec. 410. Authority to close airport located near closed or realigned 
military base.
Sec. 411. Construction of runways.
Sec. 412. Gadsden Air Depot, Alabama.
Sec. 413. Regulations affecting intrastate aviation in Alaska.
Sec. 414. Westchester County Airport, New York.
Sec. 415. Bedford Airport, Pennsylvania.
Sec. 416. Location of Doppler radar stations, New York.
Sec. 417. Worcester Municipal Airport, Massachusetts.
Sec. 418. Aircraft Noise Ombudsman.

               TITLE V--METROPOLITAN WASHINGTON AIRPORTS

Sec. 501. Short title.
Sec. 502. Amendment of Metropolitan Washington Airports Act of 1986.
Sec. 503. Use of leased property.
Sec. 504. Board of directors.
Sec. 505. Federal Advisory Commission.
Sec. 506. Review procedure.
Sec. 507. Congressional disapproval procedures.
Sec. 508. Other matters relating to Federal Advisory Commission.
Sec. 509. Effect of judicial orders.
Sec. 510. Federal Advisory Committee Act.
Sec. 511. Use of Dulles Access Highway.
Sec. 512. Amendment of lease.
Sec. 513. Availability of slots.

TITLE VI--RECOMMENDATION TO COMMITTEE ON WAYS AND MEANS ON EXTENSION OF 
     AIRPORT AND AIRWAY TRUST FUND TAXES AND EXPENDITURE AUTHORITY

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

  Except as otherwise specifically provided, whenever in titles I, II, 
III, and IV of this Act an amendment or repeal is expressed in terms of 
an amendment to, or repeal of, a section or other provision of law, the 
reference shall be considered to be made to a section or other 
provision of title 49, United States Code.

SEC. 3. APPLICABILITY.

  (a) In General.--Except as otherwise specifically provided, titles I, 
II, III, and IV of this Act and the amendments made by such titles 
shall apply only to fiscal years beginning after September 30, 1996.
  (b) Limitation on Statutory Construction.--Nothing in this Act or any 
amendment made by this Act shall be construed as affecting funds made 
available for a fiscal year ending before October 1, 1996.

                TITLE I--REAUTHORIZATION OF FAA PROGRAMS

SEC. 101. AIRPORT IMPROVEMENT PROGRAM.

  (a) Authorization of Appropriations.--Section 48103 is amended--
          (1) by striking ``September 30, 1981'' and inserting 
        ``September 30, 1996''; and
          (2) by striking ``$17,583,500,000'' and all that follows 
        through the period at the end and inserting the following: 
        ``$2,280,000,000 for fiscal years ending before October 1, 
        1997, $4,627,000,000 for fiscal years ending before October 1, 
        1998, and $7,039,000,000 for fiscal years ending before October 
        1, 1999.''.
  (b) Obligational Authority.--Section 47104(c) is amended by striking 
``1996'' and inserting ``1999''.

SEC. 102. AIRWAY FACILITIES IMPROVEMENT PROGRAM.

  (a) Authorization of Appropriations.--Section 48101(a) is amended by 
striking paragraphs (1) through (4) and inserting the following:
          ``(1) $2,068,000,000 for fiscal year 1997.
          ``(2) $2,129,000,000 for fiscal year 1998.
          ``(3) $2,191,000,000 for fiscal year 1999.''.
  (b) Clerical Amendments.--Chapter 481 is amended--
          (1) by striking the heading for section 48101 and inserting 
        the following:

``Sec. 48101. Air navigation facilities and equipment''; and

          (2) in the table of sections by striking the item relating to 
        section 48101 and inserting the following:

``48101. Air navigation facilities and equipment.''.

SEC. 103. OPERATIONS OF FAA.

  (a) Authorization of Appropriations From General Fund.--Section 
106(k) is amended by striking ``$4,088,000,000'' and all that follows 
through the period at the end and inserting the following: 
``$5,158,000,000 for fiscal year 1997, $5,344,000,000 for fiscal year 
1998, and $5,538,000,000 for fiscal year 1999.''.
  (b) Authorization of Appropriations From Trust Fund.--Section 
48104(c) is amended--
          (1) in the subsection heading by striking ``1996'' and 
        inserting ``1999''; and
          (2) by striking ``1994, 1995, and 1996'' and inserting ``1994 
        through 1999''.
  (c) Limitation on Obligating or Expending Amounts.--Section 48108(c) 
is amended by striking ``1996'' and inserting ``1999''.
  (d) Clerical Amendments.--Chapter 481 is amended--
          (1) by striking the heading for section 48104 and inserting 
        the following:

``Sec. 48104. Operations and maintenance''; and

          (2) in the table of sections for such chapter by striking the 
        item relating to section 48104 and inserting the following:

``48104. Operations and maintenance.''.

                TITLE II--AIRPORT DEVELOPMENT FINANCING

SEC. 201. APPORTIONMENTS.

  (a) Amounts Apportioned to Sponsors.--
          (1) Primary airports.--Section 47114(c)(1)(A) is amended--
                  (A) by striking ``and'' at the end of clause (iii);
                  (B) in clause (iv) by striking ``additional'' and 
                inserting ``of the next 500,000'';
                  (C) by striking the period at the end of clause (iv) 
                and inserting ``; and''; and
                  (D) by adding at the end the following:
          ``(v) $.50 for each additional passenger boarding at the 
        airport during the prior calendar year.''.
          (2) Cargo only airports.--Section 47114(c)(2) of such title 
        is amended to read as follows:
          ``(2) Cargo only airports.--
                  ``(A) Apportionment.--Subject to subparagraph (D), 
                the Secretary shall apportion an amount equal to 2.5 
                percent of the amount subject to apportionment each 
                fiscal year to the sponsors of airports served by 
                aircraft providing air transportation of only cargo 
                with a total annual landed weight of more than 
                100,000,000 pounds.
                  ``(B) Suballocation formula.--Any funds apportioned 
                under subparagraph (A) to sponsors of airports 
                described in subparagraph (A) shall be allocated among 
                those airports in the proportion that the total annual 
                landed weight of aircraft described in subparagraph (A) 
                landing at each of those airports bears to the total 
                annual landed weight of those aircraft landing at all 
                those airports.
                  ``(C) Limitation.--Not more than 8 percent of the 
                amount apportioned under subparagraph (A) may be 
                apportioned for any one airport.
                  ``(D) Distribution to other airports.--Before 
                apportioning amounts to the sponsors of airports under 
                subparagraph (A) for a fiscal year, the Secretary may 
                set-aside a portion of such amounts for distribution to 
                the sponsors of other airports, selected by the 
                Secretary, that the Secretary finds will be served 
                primarily by aircraft providing air transportation of 
                only cargo.
                  ``(E) Determination of landed weight.--Landed weight 
                under this paragraph is the landed weight of aircraft 
                landing at each airport described in subparagraph (A) 
                during the prior calendar year.''.
          (3) Repeal of limitation.--Section 47114(c)(3) is repealed.
  (b) Amounts Apportioned to States.--Section 47114(d)(2) of such title 
is amended--
          (1) by striking ``12'' and inserting ``18.5'';
          (2) in subparagraph (A) by striking ``one'' and inserting 
        ``0.66'';
          (3) in each of subparagraphs (B) and (C) by striking ``49.5'' 
        and inserting ``49.67''; and
          (4) in each of subparagraphs (B) and (C) by striking 
        ``except'' the second place it appears and all that follows 
        through ``title,'' and inserting ``excluding primary airports 
        but including reliever and nonprimary commercial service 
        airports,''.

SEC. 202. DISCRETIONARY FUND.

  Section 47115 is amended by striking the second subsection (f), 
relating to minimum amounts to be credited, and inserting the 
following:
  ``(g) Minimum Amount To Be Credited.--
          ``(1) General rule.--In a fiscal year, there shall be 
        credited to the fund, out of amounts made available under 
        section 48103 of this title, an amount that is at least equal 
        to the sum of--
                  ``(A) $50,000,000; plus
                  ``(B) the total amount required from the fund to 
                carry out in the fiscal year letters of intent issued 
                before January 1, 1996, under section 47110(e) of this 
                title or the Airport and Airway Improvement Act of 
                1982.
        The amount credited is exclusive of amounts that have been 
        apportioned in a prior fiscal year under section 47114 of this 
        title and that remain available for obligation.
          ``(2) Reduction of apportionments.--In a fiscal year in which 
        the amount credited under subsection (a) is less than the 
        minimum amount to be credited under paragraph (1), the total 
        amount calculated under paragraph (3) shall be reduced by an 
        amount that, when credited to the fund, together with the 
        amount credited under subsection (a), equals such minimum 
        amount.
          ``(3) Amount of reduction.--For a fiscal year, the total 
        amount available to make a reduction to carry out paragraph (2) 
        is the total of the amounts determined under sections 
        47114(c)(1)(A), 47114(c)(2), 47114(d), and 47117(e) of this 
        title. Each amount shall be reduced by an equal percentage to 
        achieve the reduction.
  ``(h) Allocation of Amounts Exceeding Letter of Intent 
Requirements.--Of the amount credited to the fund for a fiscal year 
which exceeds the total amount required from the fund to carry out in 
the fiscal year letters of intent issued before January 1, 1996, under 
section 47110(e) of this title or the Airport and Airway Improvement 
Act of 1982--
          ``(1) not less that 15 percent shall be used for system 
        planning and for making grants to airports that are not 
        commercial service airports; and
          ``(2) not less than 30 percent shall be used for making 
        grants to commercial service airports that each year have less 
        than .25 percent of the total passenger boardings in the United 
        States.''.

SEC. 203. USE OF APPORTIONED AMOUNTS.

  (a) Period of Availability.--Section 47117(b) is amended by inserting 
before the period at the end of the first sentence the following: ``or 
the 3 fiscal years immediately following that year in the case of a 
primary airport that had less than .05 percent of the total boardings 
in the United States in the preceding calendar year''.
  (b) Special Apportionment Categories.--Section 47117(e)(1) is 
amended--
          (1) by striking ``made available under section 48103'' and 
        inserting ``available to the discretionary fund under section 
        47115'';
          (2) by striking subparagraphs (A), (C), and (D);
          (3) by redesignating subparagraphs (B) and (E) as 
        subparagraphs (A) and (B), respectively;
          (4) in subparagraph (A), as so redesignated, by striking ``at 
        least 12.5'' and inserting ``At least 31'';
          (5) by adding at the end of subparagraph (A), as so 
        redesignated, the following: ``The Secretary may count the 
        amount of grants made for such planning and programs with funds 
        apportioned under section 47114 in that fiscal year in 
        determining whether or not such 31 percent requirement is being 
        met in that fiscal year.'';
          (6) in subparagraph (B), as so redesignated, by striking ``at 
        least 2.25'' and all that follows through ``1996,'' and 
        inserting ``At least 4 percent for each fiscal year 
        thereafter''; and
          (7) by inserting before the period at the end of subparagraph 
        (B), as so redesignated, the following: ``and to sponsors of 
        noncommercial service airports for grants for operational and 
        maintenance expenses at any such airport if the amount of such 
        grants to the sponsor of the airport does not exceed $30,000 in 
        that fiscal year, if the Secretary determines that the airport 
        is adversely affected by the closure or realignment of a 
        military base, and if the sponsor of the airport certifies that 
        the airport would otherwise close if the airport does not 
        receive the grant''.

SEC. 204. DESIGNATING CURRENT AND FORMER MILITARY AIRPORTS.

  (a) General Requirements.--Section 47118(a) is amended--
          (1) by striking ``not more than 15'';
          (2) by inserting after the first sentence the following: 
        ``The maximum number of airports which may be designated by the 
        Secretary under this section at any time is 10.''; and
          (3) by striking ``reduce delays'' and all that follows 
        through ``landings'' and inserting the following: ``enhance 
        airport and air traffic control system capacity in major 
        metropolitan areas and reduce current or projected flight 
        delays''.
  (b) Survey and Considerations.--Section 47118 is amended--
          (1) in subsections (a) and (d) by striking ``section 
        47117(e)(1)(E)'' and inserting ``section 47117(e)(1)(B)''; and
          (2) by striking subsections (b) and (c) and redesignating 
        subsections (d), (e), and (f) as subsections (b), (c), and (d), 
        respectively.
  (c) Parking Lots, Fuel Farms, and Utilities.--Subsection (d) of 
section 47118, as redesignated by subsection (b) of this section, is 
amended by striking ``for the fiscal years ending September 30, 1993-
1996,'' and inserting ``for fiscal years beginning after September 30, 
1992,''.

SEC. 205. SELECT PANEL ON AIRPORT AND AGENCY FINANCING.

  (a) Establishment.--There is established an advisory committee which 
shall be known as the Select Panel on Airport and Agency Financing 
(hereinafter in this section referred to as the ``panel'').
  (b) Functions.--The panel shall evaluate and recommend innovative 
financing mechanisms for ensuring adequate funding for airport capital 
needs and Federal Aviation Administration capital and operating needs.
  (c) Membership.--The panel shall consist of 15 members as follows:
          (1) 7 members appointed by the Secretary of Transportation, 
        in consultation with the Secretary of the Treasury, of whom--
                  (A) 3 shall have expertise in aviation; and
                  (B) 3 shall have expertise in financing, including at 
                least 1 with expertise in airport financing.
          (2) 8 members appointed by Congress as follows:
                  (A) 1 member appointed by each of the chairman and 
                ranking minority member of the Committee on 
                Transportation and Infrastructure of the House of 
                Representatives.
                  (B) 1 member appointed by each of the chairman and 
                ranking minority member of the Committee on 
                Appropriations of the House of Representatives.
                  (C) 1 member appointed by each of the chairman and 
                ranking minority member of the Committee on Commerce, 
                Science, and Transportation of the Senate.
                  (D) 1 member appointed by each of the chairman and 
                ranking minority member of the Committee on 
                Appropriations of the Senate.
  (d) Restriction on Appointment of Current Aviation Employees.--A 
member appointed under subsection (c)(1) may not be an employee of an 
airline, airport, or aviation trade association at the time of 
appointment or while serving on the panel.
  (e) Chairman.--The Secretary of Transportation, in consultation with 
the Secretary of the Treasury, shall designate a chairman of the panel 
from among the members appointed under subsection (c)(1).
  (f) Charter.--The Secretary of Transportation, in consultation with 
the Secretary of the Treasury, shall provide the panel with a charter 
of the matters to be evaluated and addressed by the panel. The charter, 
at a minimum, shall direct the panel to undertake the following:
          (1) Evaluate and identify current and expected airport 
        capital needs and Federal Aviation Administration capital and 
        operating needs.
          (2) Assess the ability of various financing mechanisms to 
        meet airport capital requirements by type and size of airport. 
        The financing mechanisms to be assessed under this paragraph 
        include the airport improvement program, passenger facility 
        charges, tax-exempt bonds, State and local assistance, airport 
        privatization, infrastructure banks, government-sponsored 
        enterprises, and leveraging of Federal airport funding. In 
        conducting the assessment under this paragraph, the panel shall 
        consider the special problems of non-hub airports and general 
        aviation airports.
          (3) Based on alternative funding scenarios for the airport 
        improvement program ranging from elimination of funding to full 
        funding to current amounts made available, assess and recommend 
        alternative financing approaches that will address airport 
        capital requirements.
          (4) Assess the ability of various financing mechanisms to 
        fund the operations and capital requirements of the Federal 
        Aviation Administration in a manner that will provide for 
        future growth in the Nation's air traffic system, improve the 
        management and performance of the air traffic control system, 
        provide for continued safety improvements, and make the 
        Administration more efficient and effective. The financing 
        mechanisms to be assessed under this paragraph include loan 
        guarantees, financial partnerships with for-profit private 
        sector entities, multi-year appropriations, revolving loan 
        funds, mandatory spending authority, authority to borrow, 
        restructured grant programs, and user fees.
  (g) Independent Audit.--
          (1) Contracts.--Immediately following the appointment of the 
        panel, the panel shall contract with an entity independent of 
        the Federal Aviation Administration and the Department of 
        Transportation to conduct a complete audit of the financial 
        requirements of the Administration, including anticipated air 
        traffic forecasts, other workload measures, and estimated 
        productivity gains which lead to budgetary requirements.
          (2) Deadline.--The independent audit shall be completed no 
        later than 180 days after the date of the contract award and 
        shall be submitted to the panel.
          (3) Funding.--The Administrator of the Federal Aviation 
        Administration shall make available to the panel from funds 
        appropriated to the Administration such sums as may be 
        necessary to enter into a contract under this subsection.
  (h) Travel and Per Diem.--Each member of the panel shall be paid 
actual travel expenses, and per diem in lieu of subsistence expenses, 
when away from his or her usual place of residence, in accordance with 
section 5703 of title 5, United States Code.
  (i) Utilization of Personnel From FAA.--The Administrator shall make 
available to the panel such staff, information, and administrative 
services and assistance as may reasonably be required to enable the 
panel to carry out its responsibilities under this section.
  (j) Report.--Not later than 1 year after the date of the appointment 
of the last member to the panel under subsection (c), the panel shall 
submit to Congress and the Administrator a report on the results of the 
review conducted under this section.
  (k) GAO Assessment.--Not later than 180 days after the date of the 
enactment of this Act, the Comptroller General shall transmit to the 
panel and Congress an independent assessment of airport needs.

          TITLE III--AIRPORT IMPROVEMENT PROGRAM MODIFICATIONS

SEC. 301. INTERMODAL PLANNING.

  (a) Policies.--Section 47101(g) is amended to read as follows:
  ``(g) Intermodal Planning.--To carry out the policy of subsection 
(a)(5) of this section, the Secretary of Transportation shall take each 
of the following actions:
          ``(1) Coordination in development of airport plans and 
        programs.--Cooperate with State and local officials in 
        developing airport plans and programs that are based on overall 
        transportation needs. The airport plans and programs shall be 
        developed in coordination with other transportation planning 
        and considering comprehensive long-range land-use plans and 
        overall social, economic, environmental, system performance, 
        and energy conservation objectives. The process of developing 
        airport plans and programs shall be continuing, cooperative, 
        and comprehensive to the degree appropriate to the complexity 
        of the transportation problems.
          ``(2) Goals for airport master and system plans.--Encourage 
        airport sponsors and State and local officials to develop 
        airport master plans and airport system plans that--
                  ``(A) foster effective coordination between aviation 
                planning and metropolitan planning;
                  ``(B) include an evaluation of aviation needs within 
                the context of multimodal planning; and
                  ``(C) are integrated with metropolitan plans to 
                ensure that airport development proposals include 
                adequate consideration of land use and ground 
                transportation access.
          ``(3) Representation of airport operators on mpo's.--
        Encourage metropolitan planning organizations, particularly in 
        areas with populations greater than 200,000, to establish 
        membership positions for airport operators.''.
  (b) Requirements for Project Grant Applications.--Section 47106(a) is 
amended--
          (1) by inserting ``, including transportation and land use 
        plans'' before the semicolon at the end of paragraph (1);
          (2) by striking ``and'' at the end of paragraph (4);
          (3) by striking the period at the end of paragraph (5) and 
        inserting ``; and''; and
          (4) by adding at the end the following:
          ``(6) with respect to a project for the location of an 
        airport, the sponsor has--
                  ``(A) provided the metropolitan planning organization 
                authorized to conduct metropolitan planning for the 
                area in which the airport is to be located with not 
                less than 30 days (i) to review the airport master plan 
                or the airport layout plan in which the project is 
                described and depicted, and (ii) to submit comments on 
                such plans to the sponsor; and
                  ``(B) included in the sponsor's application to the 
                Secretary the sponsor's written responses to any 
                comments made by the metropolitan planning 
                organization.''.

SEC. 302. COMPLIANCE WITH FEDERAL MANDATES.

  (a) Use of AIP Grants.--Section 47102(3) is amended--
          (1) in subparagraph (E) by inserting ``or under section 
        40117'' before the period at the end; and
          (2) in subparagraph (F) by striking ``paid for by a grant 
        under this subchapter and''.
  (b) Use of Passenger Facility Charges.--Section 40117(a)(3) is 
amended by striking subparagraph (F).

SEC. 303. RUNWAY MAINTENANCE PROGRAM.

  (a) Authority.--Section 47105 is amended by adding at the end the 
following:
  ``(g) Runway Maintenance Program.--The Secretary may carry out a 
pilot program in each of fiscal years 1997, 1998, and 1999 under which 
the Secretary may approve applications under this subchapter for not 
more than 10 projects in each of such fiscal years to preserve and 
extend the useful life of runways and taxiways at any airport for which 
an amount is apportioned under section 47114(d).''.
  (b) Inclusion in Airport Development Activities.--Section 47102(3) is 
amended by adding at the end the following:
                  ``(H) preserving and extending the useful life of 
                runways and taxiways at a public-use airport under the 
                pilot program authorized by section 47105(g) of this 
                title.''.

SEC. 304. ACCESS TO AIRPORTS BY INTERCITY BUSES.

  Section 47107(a) is amended--
          (1) by striking ``and'' at the end of paragraph (18);
          (2) by striking the period at the end of paragraph (19) and 
        inserting ``; and''; and
          (3) by adding at the end the following:
          ``(20) the airport owner or operator will permit, to the 
        maximum extent practicable, intercity buses to have access to 
        the airport.''.

SEC. 305. COST REIMBURSEMENT FOR PROJECTS COMMENCED PRIOR TO GRANT 
                    AWARD.

  (a) Cost Reimbursement.--Section 47110(b)(2)(C) is amended to read as 
follows:
          ``(C) if the Government's share is paid only with amounts 
        apportioned under paragraphs (1) and (2) of section 47114(c) of 
        this title and if the cost is incurred--
                  ``(i) after September 30, 1996;
                  ``(ii) before a grant agreement is executed for the 
                project; and
                  ``(iii) in accordance with an airport layout plan 
                approved by the Secretary and with all statutory and 
                administrative requirements that would have been 
                applicable to the project if the project had been 
                carried out after the grant agreement had been 
                executed;''.
  (b) Use of Discretionary Funds.--Section 47110 is amended by adding 
at the end the following:
  ``(g) Use of Discretionary Funds.--A project for which cost 
reimbursement is provided under subsection (b)(2)(C) shall not receive 
priority consideration with respect to the use of discretionary funds 
made available under section 47115 of this title even if the amounts 
made available under paragraphs (1) and (2) of section 47114(c) are not 
sufficient to cover the Government's share of the cost of project.''.

SEC. 306. ISSUANCE OF LETTERS OF INTENT.

  Section 47110(e) is amended--
          (1) by redesignating paragraph (6) as paragraph (9); and
          (2) by inserting after paragraph (5) the following:
          ``(6) Cost-benefit regulations.--The Secretary shall issue 
        regulations to require a cost-benefit analysis for any letter 
        of intent to be issued under paragraph (1) for a project at an 
        airport that each year has more than .25 percent of the total 
        passenger boardings in the United States. Until the date on 
        which such regulations take effect, the Secretary may not issue 
        a letter of intent under paragraph (1) for any project that is 
        not yet under construction and that is to be carried out at an 
        airport described in the preceding sentence.
          ``(7) Financing plans.--The Secretary shall require airport 
        sponsors to provide, as part of any request for a letter of 
        intent for a project under paragraph (1), specific details on 
        the proposed financing plan for the project.
          ``(8) Consideration.--The Secretary shall consider the effect 
        of a project on overall national air transportation policy when 
        reviewing requests for letters of intent under paragraph 
        (1).''.

SEC. 307. SELECTION OF PROJECTS FOR GRANTS FROM DISCRETIONARY FUND.

  Section 47115(d) is amended--
          (1) by striking ``and'' at the end of paragraph (2);
          (2) by striking the period at the end of paragraph (3) and 
        inserting a semicolon; and
          (3) by adding at the end the following:
          ``(4) the priority that the State gives to the project;
          ``(5) the projected growth in the number of passengers that 
        will be using the airport at which the project will be carried 
        out; and
          ``(6) any increase in the number of passenger boardings in 
        the preceding 12-month period at the airport at which the 
        project will be carried out, with priority consideration to be 
        given to projects at airports at which the number of passenger 
        boardings increased by at least 20 percent as compared to the 
        number of passenger boardings in the 12-month period preceding 
        such period.''.

SEC. 308. SMALL AIRPORT FUND.

  Section 47116 is amended by adding at the end the following:
  ``(d) Priority Consideration for Certain Projects.--In making grants 
to sponsors described in subsection (b)(2), the Secretary shall give 
priority consideration to multi-year projects for construction of new 
runways that the Secretary finds are cost beneficial and would increase 
capacity in a region of the United States.''.

SEC. 309. STATE BLOCK GRANT PROGRAM.

  (a) Participating States.--Section 47128 is amended--
          (1) in subsection (a) by striking ``7'' and inserting ``10'';
          (2) in subsection (b)(1)--
                  (A) by striking ``(1)''; and
                  (B) by redesignating subparagraphs (A) through (E) as 
                paragraphs (1) through (5), respectively; and
          (3) by striking subsection (b)(2).
  (b) Use of State Priority System.--Section 47128(c) is amended--
          (1) by striking ``(b)(1)(B) or (C)'' and inserting ``(b)(2) 
        or (b)(3)''; and
          (2) by adding at the end the following: ``In carrying out 
        this subsection, the Secretary shall permit a State to use the 
        priority system of the State if such system is not inconsistent 
        with the national priority system.''.
  (c) Repeal of Expiration Date.--
          (1) In general.--Section 47128 is amended--
                  (A) by striking ``pilot'' in the section heading;
                  (B) by striking ``pilot'' in subsection (a); and
                  (C) by striking subsection (d).
          (2) Conforming amendment.--The table of sections for chapter 
        471 is amended by striking the item relating to section 47128 
        and inserting the following:

``47128. State block grant program.''.

SEC. 310. PRIVATE OWNERSHIP OF AIRPORTS.

  (a) Establishment of Program.--
          (1) In general.--Subchapter I of chapter 471 is amended by 
        adding at the end the following:

``Sec. 47132. Private ownership of airports

  ``(a) Submission of Applications.--If a sponsor intends to sell an 
airport or lease an airport for a long term to a person (other than a 
public agency), the sponsor and purchaser or lessee may apply to the 
Secretary of Transportation for exemptions under this section.
  ``(b) Approval of Applications.--The Secretary may approve, with 
respect to not more than 6 airports, applications submitted under 
subsection (a) granting exemptions from the following provisions:
          ``(1) Use of revenues.--
                  ``(A) In general.--The Secretary may grant an 
                exemption to a sponsor from the provisions of sections 
                44706(d) and 47107(b) of this title (and any other law, 
                regulation, or grant assurance) to the extent necessary 
                to permit the sponsor to recover from the sale or lease 
                of the airport such amount as may be approved--
                          ``(i) by at least 60 percent of the air 
                        carriers serving the airport; and
                          ``(ii) by the air carrier or air carriers 
                        whose aircraft landing at the airport during 
                        the preceding calendar year had a total landed 
                        weight during the preceding calendar year of at 
                        least 60 percent of the total landed weight of 
                        all aircraft landing at the airport during such 
                        year.
                  ``(B) Landed weight defined.--In this paragraph, the 
                term `landed weight' means the weight of aircraft 
                transporting passengers or cargo, or both, in 
                intrastate, interstate, and foreign air transportation, 
                as the Secretary determines under regulations the 
                Secretary prescribes.
          ``(2) Repayment requirements.--The Secretary may grant an 
        exemption to a sponsor from the provisions of sections 47107 
        and 47152 of this title (and any other law, regulation, or 
        grant assurance) to the extent necessary to waive any 
        obligation of the sponsor to repay to the Federal Government 
        any grants, or to return to the Federal Government any 
        property, received by the airport under this title, the Airport 
        and Airway Improvement Act of 1982, or any other law.
          ``(3) Compensation from airport operations.--The Secretary 
        may grant an exemption to a purchaser or lessee from the 
        provisions of sections 44706(d) and 47107(b) of this title (and 
        any other law, regulation, or grant assurance) to the extent 
        necessary to permit the purchaser or lessee to earn 
        compensation from the operations of the airport.
  ``(c) Terms and Conditions.--The Secretary may approve an application 
under subsection (b) only if the Secretary finds that the sale or lease 
agreement includes provisions satisfactory to the Secretary to ensure 
the following:
          ``(1) The airport will continue to be available for public 
        use on reasonable terms and conditions and without unjust 
        discrimination.
          ``(2) The operation of the airport will not be interrupted in 
        the event that the purchaser or lessee becomes insolvent or 
        seeks or becomes subject to any State or Federal bankruptcy, 
        reorganization, insolvency, liquidation, or dissolution 
        proceeding or any petition or similar law seeking the 
        dissolution or reorganization of the purchaser or lessee or the 
        appointment of a receiver, trustee, custodian, or liquidator 
        for the purchaser or lessee or a substantial part of the 
        purchaser or lessee's property, assets, or business.
          ``(3) The purchaser or lessee will maintain and improve the 
        facilities of the airport and will submit to the Secretary a 
        plan for carrying out such maintenance and improvements.
          ``(4) Every fee of the airport imposed on an air carrier on 
        the day before the date of the sale or lease of the airport 
        will not increase faster than the rate of inflation unless a 
        higher amount is approved--
                  ``(A) by at least 60 percent of the air carriers 
                serving the airport; and
                  ``(B) by the air carrier or air carriers whose 
                aircraft landing at the airport during the preceding 
                calendar year had a total landed weight during the 
                preceding calendar year of at least 60 percent of the 
                total landed weight of all aircraft landing at the 
                airport during such year.
          ``(5) Safety and security at the airport will be maintained 
        at the highest possible levels.
          ``(6) The adverse effects of noise from operations at the 
        airport will be mitigated to the same extent as at a public 
        airport.
          ``(7) Any adverse effects on the environment from airport 
        operations will be mitigated to the same extent as at a public 
        airport.
          ``(8) Any collective bargaining agreement that covers 
        employees of the airport and is in effect on the date of the 
        sale or lease of the airport will not be abrogated by the sale 
        or lease.
  ``(d) Participation of Certain Airports.--If the Secretary approves 
under subsection (b) applications with respect to 6 airports, at least 
one of the airports must be an airport that is not a commercial service 
airport.
  ``(e) Passenger Facility Fees; Apportionments; Service Charges.--
Notwithstanding that the sponsor of an airport receiving an exemption 
under subsection (b) is not a public agency, the sponsor shall not be 
prohibited from--
          ``(1) imposing a passenger facility fee under section 40117 
        of this title;
          ``(2) receiving apportionments under section 47114 of this 
        title; or
          ``(3) collecting reasonable rental charges, landing fees, and 
        other service charges from aircraft operators under section 
        40116(e)(2) of this title.
  ``(f) Effectiveness of Exemptions.--An exemption granted under 
subsection (b) shall continue in effect only so long as the facilities 
sold or leased continue to be used for airport purposes.
  ``(g) Revocation of Exemptions.--The Secretary may revoke an 
exemption issued to a purchaser or lessee of an airport under 
subsection (b)(3) if, after providing the purchaser or lessee with 
notice and an opportunity to be heard, the Secretary determines that 
the purchaser or lessee has knowingly violated any of the terms 
specified in subsection (c) for the sale or lease of the airport.
  ``(h) Nonapplication of Provisions to Airports Owned by Public 
Agencies.--The provisions of this section requiring the approval of air 
carriers in determinations concerning the use of revenues, and 
imposition of fees, at an airport shall not be extended so as to apply 
to any airport owned by a public agency.''.
          (2) Conforming amendment.--The table of sections for such 
        chapter is further amended by adding at the end the following:

``47132. Private ownership of airports.''.

  (b) Taxation.--Section 40116(b) is amended--
          (1) by striking ``a State or'' and inserting ``a State, a''; 
        and
          (2) by inserting after ``of a State'' the following: ``, and 
        any person that has purchased or leased an airport under 
        section 47132 of this title''.
  (c) Resolution of Airport-Air Carrier Disputes Concerning Airport 
Fees.--Section 47129(a) is amended by adding at the end the following:
          ``(4) Fees imposed by privately-owned airports.--In 
        evaluating the reasonableness of a fee imposed by an airport 
        receiving an exemption under section 47132 of this title, the 
        Secretary shall consider whether the airport has complied with 
        section 47132(c)(4).''.
SEC. 311. USE OF NOISE SET-ASIDE FUNDS BY NON-AIRPORT SPONSORS.
  Section 47505 is amended--
          (1) by redesignating subsection (b) as subsection (c);
          (2) in subsection (c), as so redesignated, by striking 
        ``subsection (a) of'' and inserting ``subsection (a) or (b) 
        of''; and
          (3) by inserting after subsection (a) the following:
  ``(b) Grants to Non-Airport Sponsors.--
          ``(1) Authority.--The Secretary may make a grant under this 
        subsection to a State or unit of local government that is not 
        the owner or operator of the airport for preparation of an 
        airport land use compatibility plan or implementation of an 
        airport land use compatibility project.
          ``(2) Planning authority.--In order to be eligible to receive 
        a grant under this subsection for preparation of an airport 
        land use compatibility plan, the State or unit of local 
        government must have authority to plan and adopt land use 
        control measures, including zoning, in the planning area.
          ``(3) Coordination of planning activities.--
                  ``(A) Consistency with other planning.--An airport 
                land use compatibility plan prepared by a State or unit 
                of local government under this subsection may not 
                duplicate or be inconsistent with an airport noise 
                compatibility program prepared by an airport operator 
                under this chapter or with other planning carried out 
                by the airport operator.
                  ``(B) Consultation with airport owners and 
                operators.--A State or unit of local government 
                receiving a grant under this subsection for preparation 
                of an airport land use compatibility plan shall consult 
                with the owner or operator of the airport for which the 
                plan is being prepared regarding any recommended 
                airport land use compatibility measure identified in 
                the plan and any aviation data on which such 
                recommendation is made.
          ``(4) Approval of airport owner or operator required.--The 
        Secretary may make a grant to a State or unit of local 
        government under this subsection for preparation of an airport 
        land use compatibility plan or implementation of an airport 
        land use compatibility project only after receiving the 
        approval of the owner or operator of the airport for which the 
        plan or project is being prepared or implemented. Such approval 
        shall be based on whether the plan or program, including the 
        use of any noise exposure contours on which the plan or project 
        is based, has been coordinated with the airport and is 
        consistent with the airport's operations and planning.
          ``(5) Written assurances.--The Secretary may make a grant to 
        a State or unit of local government under this subsection only 
        after receiving from the State or unit of local government such 
        written assurances as the Secretary determines necessary to 
        achieve the purposes of this subsection.
          ``(6) Guidelines.--The Secretary may establish guidelines in 
        carrying out this subsection.
          ``(7) Definitions.--In this subsection, the following 
        definitions apply:
                  ``(A) Airport compatible land use.--The term `airport 
                compatible land use' means any land use that is usually 
                compatible with--
                          ``(i) the noise levels associated with an 
                        airport, as established under this chapter;
                          ``(ii) airport design standards issued by the 
                        Administrator; and
                          ``(iii) regulations issued to carry out 
                        section 44718 of this title.
                  ``(B) Airport land use compatibility plan.--The term 
                `airport land use compatibility plan' means the product 
                of a process to determine the extent, type, nature, 
                location, and timing of measures to improve the 
                compatibility of land use with the existing forecast 
                level of aviation activity at an airport.
                  ``(C) Airport land use compatibility project.--The 
                term `airport land use compatibility project' means a 
                project that is contained in an airport land use 
                compatibility plan and determined by the Administrator 
                to enhance airport compatible land use.''.

                   TITLE IV--MISCELLANEOUS PROVISIONS

SEC. 401. PURCHASE OF HOUSING UNITS.

  Section 40110 is amended--
          (1) by redesignating subsection (b) as subsection (c); and
          (2) by inserting after subsection (a) the following:
  ``(b) Purchase of Housing Units.--
          ``(1) Authority.--In carrying out this part, the 
        Administrator may purchase a housing unit (including a 
        condominium or a housing unit in a building owned by a 
        cooperative) that is located outside the contiguous United 
        States if the cost of the unit is $200,000 or less.
          ``(2) Continuing obligations.--Notwithstanding section 1341 
        of title 31, the Administrator may purchase a housing unit 
        under paragraph (1) even if there is an obligation thereafter 
        to pay necessary and reasonable fees duly assessed upon such 
        unit, including fees related to operation, maintenance, taxes, 
        and insurance.
          ``(3) Certification to congress.--The Administrator may 
        purchase a housing unit under paragraph (1) only if, at least 
        30 days before completing the purchase, the Administrator 
        transmits to the Committee on Transportation and Infrastructure 
        of the House of Representatives and the Committee on Commerce, 
        Science, and Transportation of the Senate a report containing--
                  ``(A) a description of the housing unit and its 
                price;
                  ``(B) a certification that the price does not exceed 
                the median price of housing units in the area; and
                  ``(C) a certification that purchasing the housing 
                unit is the most cost-beneficial means of providing 
                necessary accommodations in carrying out this part.
          ``(4) Payment of fees.--The Administrator may pay, when due, 
        fees resulting from the purchase of a housing unit under this 
        subsection from any amounts made available to the 
        Administrator.''.

SEC. 402. TECHNICAL CORRECTION RELATING TO STATE TAXATION.

  Section 40116(b) is amended by striking ``subsection (c) of this 
section and''.

SEC. 403. USE OF PASSENGER FACILITY FEES FOR DEBT FINANCING PROJECT.

  Section 40117(a)(3) is amended by adding at the end the following:
                  ``(G) for debt financing of a terminal development 
                project at a commercial service airport that each year 
                has .05 percent or less of the total passenger 
                boardings in the United States if construction began on 
                the project after November 5, 1988, and before November 
                5, 1990, and the eligible agency certifies that no 
                other eligible airport-related projects affecting 
                safety, security, or capacity will be deferred by the 
                debt financing project.''.

SEC. 404. PROTECTION OF VOLUNTARILY SUBMITTED INFORMATION.

  (a) In General.--Chapter 401 is amended by redesignating section 
40120 as section 40121 and by inserting after section 40119 the 
following:

``Sec. 40120. Protection of voluntarily submitted information

  ``(a) General Rule.--Notwithstanding any other provision of law, 
neither the Administrator of the Federal Aviation Administration, nor 
any agency receiving information from the Administrator, may disclose 
voluntarily provided safety or security related information if the 
Administrator finds that--
          ``(1) the disclosure of the information would inhibit the 
        voluntary provision of that type of information;
          ``(2) the receipt of that type of information would aid in 
        fulfilling the Administrator's safety and security 
        responsibilities; and
          ``(3) the withholding of the information would not be 
        inconsistent with the Administrator's safety and security 
        responsibilities.
  ``(b) Regulations.--The Administrator shall issue regulations to 
carry out this section.''.
  (b) Conforming Amendment.--The table of sections for chapter 401 is 
amended by striking the item relating to section 40120 and inserting 
the following:

4``40120. Protection of voluntarily submitted information.
``40121. Relationship to other laws.''.

SEC. 405. SUPPLEMENTAL TYPE CERTIFICATES.

  Section 44704 is amended--
          (1) by redesignating subsections (b) and (c) as subsections 
        (c) and (d), respectively; and
          (2) by inserting after subsection (a) the following:
  ``(b) Supplemental Type Certificates.--
          ``(1) Issuance.--The Administrator may issue a type 
        certificate designated as a supplemental type certificate for a 
        change to an aircraft, aircraft engine, propeller, or 
        appliance.
          ``(2) Contents.--A supplemental type certificate issued under 
        paragraph (1) shall consist of the change to the aircraft, 
        aircraft engine, propeller, or appliance with respect to the 
        previously issued type certificate for the aircraft, aircraft 
        engine, propeller, or appliance.
          ``(3) Requirement.--If the holder of a supplemental type 
        certificate agrees to permit another person to use the 
        certificate to modify an aircraft, aircraft engine, propeller, 
        or appliance, the holder shall provide the other person with 
        written evidence, in a form acceptable to the Administrator, of 
        that agreement. A person may change an aircraft, aircraft 
        engine, propeller, or appliance based on a supplemental type 
        certificate only if the person requesting the change is the 
        holder of the supplemental type certificate or has permission 
        from the holder to make the change.''.

SEC. 406. RESTRICTION ON USE OF REVENUES.

  (a) In General.--Section 44706 is amended by adding at the end the 
following:
  ``(d) Use of Revenues.--
          ``(1) Prohibition.--A person holding an airport operating 
        certificate under this section may not expend local taxes on 
        aviation fuel (except taxes in effect on December 30, 1987) or 
        the revenues generated by the airport for any purpose other 
        than the capital or operating costs of--
                  ``(A) the airport;
                  ``(B) the local airport system; or
                  ``(C) other local facilities owned or operated by the 
                person and directly and substantially related to the 
                air transportation of passengers or property.
          ``(2) Exceptions.--Paragraph (1) does not apply if a 
        provision enacted not later than September 2, 1982, in a law 
        controlling financing by the owner or operator, or a covenant 
        or assurance in a debt obligation issued not later than 
        September 2, 1982, by the owner or operator, provides that the 
        revenues, including local taxes on aviation fuel at public 
        airports, from any of the facilities of the owner or operator, 
        including the airport, be used to support not only the airport 
        but also the general debt obligations or other facilities of 
        the owner or operator.
          ``(3) Authority to issue waivers to airports not receiving 
        grant assistance.--The Administrator may waive the application 
        of paragraph (1) with respect to any airport that has not 
        received grant assistance under chapter 471 of this title or 
        the Airport and Airway Improvement Act of 1982 in the 10-year 
        period ending on the date of the enactment of this subsection.
          ``(4) Limitation on statutory construction.--This subsection 
        does not prevent the use of a State tax on aviation fuel to 
        support a State aviation program or the use of airport revenue 
        on or off the airport for a noise mitigation purpose.''.
  (b) Penalties.--Section 46301(a)(5) is amended to read as follows:
          ``(5) Penalty for diversion of aviation revenues.--The amount 
        of a civil penalty assessed under this section for a violation 
        of section 47107(b) of this title (or any assurance made under 
        such section) or section 44706(d) of this title may be 
        increased above the otherwise applicable maximum amount under 
        this section to an amount not to exceed 3 times the amount of 
        revenues that are used in violation of such section.''.

SEC. 407. CERTIFICATION OF SMALL AIRPORTS.

  (a) In General.--Section 44706(a) is amended--
          (1) by redesignating paragraph (2) as paragraph (3);
          (2) by inserting after paragraph (1) the following:
          ``(2) that is not located in the State of Alaska and serves 
        any scheduled passenger operation of an air carrier operating 
        aircraft designed for more than 9 passenger seats but less than 
        31 passenger seats; and'';
          (3) by striking ``and'' at the end of paragraph (3), as 
        redesignated by paragraph (1) of this subsection;
          (4) by striking ``(3) when'' and inserting ``if''; and
          (5) by moving the matter following paragraph (3), as 
        redesignated by paragraph (1) of this subsection, to the left 
        flush full measure.
  (b) Commuter Airports.--Section 44706 is amended by adding at the end 
the following:
  ``(e) Commuter Airports.--In developing the terms required by 
subsection (b) for airports covered by subsection (a)(2), the 
Administrator shall identify and consider a reasonable number of 
regulatory alternatives and select from such alternatives the least 
costly, most cost-effective or the least burdensome alternative that 
will provide comparable safety at airports described in subsections 
(a)(1) and (a)(2).''.
  (c) Effective Date.--Section 44706 is further amended by adding at 
the end the following:
  ``(f) Effective Date.--Any regulation establishing the terms required 
by subsection (b) for airports covered by subsection (a)(2) shall not 
take effect until such regulation, and a report on the economic impact 
of the regulation on air service to the airports covered by the rule, 
has been submitted to Congress and 120 days have elapsed following the 
date of such submission.''.

SEC. 408. DISCRETIONARY AUTHORITY FOR CRIMINAL HISTORY RECORDS CHECKS.

  (a) In General.--Section 44936(a)(1) is amended--
          (1) by redesignating subparagraphs (A) and (B) as clauses (i) 
        and (ii), respectively;
          (2) by striking ``(1) The Administrator'' and inserting the 
        following:
          ``(1) Employees.--
                  ``(A) Persons with access to aircraft and other 
                secured areas.--The Administrator'';
          (3) by moving the remainder of the text of subparagraph (A) 
        (as designated by paragraph (2) of this subsection), including 
        clauses (i) and (ii) (as designated by paragraph (1) of this 
        subsection), 2 ems to the right; and
          (4) by adding at the end the following:
                  ``(B) Persons responsible for screening passengers 
                and property.--
                          ``(i) In general.--The Administrator may 
                        require by regulation that an employment 
                        investigation (including a criminal history 
                        record check in cases in which the employment 
                        investigation reveals a gap in employment of 12 
                        months or more that the individual does not 
                        satisfactorily account for) be conducted for 
                        individuals who will be responsible for 
                        screening passengers and property under section 
                        44901 of this title and their supervisors.
                          ``(ii) Special rule.--If an individual 
                        requires a criminal history record check under 
                        clause (i), the individual may be employed as a 
                        screener until the check is completed if the 
                        individual is subject to supervision.''.
  (b) Conforming Amendments.--Section 44936(a)(2) is amended--
          (1) by striking ``(2) An air carrier'' and inserting the 
        following:
          ``(2) Responsibility of air carriers, foreign air carriers, 
        and airport operators.--An air carrier''; and
          (2) by moving the remainder of the text of the paragraph 2 
        ems to the right.
  (c) Applicability.--The amendment made by subsection (a)(4) shall not 
apply to an individual employed as a screener, or a supervisor of 
screeners, on the day before the date of the enactment of this Act.

SEC. 409. IMPOSITION OF FEES.

  (a) In General.--Chapter 453 is amended by adding at the end the 
following:

``Sec. 45304. Prohibition on imposition of unauthorized fees; fees for 
                    services provided to certain aircraft

  ``(a) Prohibition.--Notwithstanding any other provision of law, the 
Administrator of the Federal Aviation Administration shall not impose 
any fee that is not in effect on the date of the enactment of this 
section and that is not authorized by law.
  ``(b) Authority To Impose Fees.--The Administrator is authorized to 
establish a schedule of fees (and a collection process for such fees), 
to be effective not later than October 1, 1996, for services provided 
by the Administration to aircraft that neither take off from nor land 
in the United States. The schedule shall establish the fees at levels 
that will recover $30,000,000 in the first year in which the fees are 
implemented.''.
  (b) Conforming Amendment.--The table of sections for such chapter is 
amended by adding at the end the following new item:

``45304. Prohibition on imposition of unauthorized fees; fees for 
services provided to certain aircraft.''.

SEC. 410. AUTHORITY TO CLOSE AIRPORT LOCATED NEAR CLOSED OR REALIGNED 
                    MILITARY BASE.

  Notwithstanding any other provision of a law, rule, or grant 
assurance, an airport that is not a commercial service airport may be 
closed by its sponsor without any obligation to repay grants made under 
chapter 471 of title 49, United States Code, the Airport and Airway 
Improvement Act of 1982, or any other law if the airport is located 
within 3 miles of a military base which has been closed or realigned.

SEC. 411. CONSTRUCTION OF RUNWAYS.

  Notwithstanding section 332 of the Department of Transportation and 
Related Agencies Appropriations Act, 1996 (109 Stat. 457) or any other 
provision of law that specifically restricts the number of runways at a 
single international airport, the Secretary of Transportation may 
obligate funds under chapters 471 and 481 of title 49, United States 
Code, for any project to construct a new runway at such airport, unless 
this section is expressly repealed.

SEC. 412. GADSDEN AIR DEPOT, ALABAMA.

  (a) Authority To Grant Waivers.--Notwithstanding section 16 of the 
Federal Airport Act (as in effect on May 4, 1949), the Secretary is 
authorized, subject to the provisions of section 47153 of title 49, 
United States Code, and the provisions of subsection (b) of this 
section, to waive any of the terms contained in the deed of conveyance 
dated May 4, 1949, under which the United States conveyed certain 
property to the city of Gadsden, Alabama, for airport purposes.
  (b) Conditions.--Any waiver granted under subsection (a) shall be 
subject to the following conditions:
          (1) The city of Gadsden, Alabama, shall agree that, in 
        conveying any interest in the property which the United States 
        conveyed to the city by a deed described in subsection (a), the 
        city will receive an amount for such interest which is equal to 
        the fair market value of such interest (as determined pursuant 
        to regulations issued by the Secretary).
          (2) Any such amount so received by the city shall be used by 
        the city for the development, improvement, operation, or 
        maintenance of a public airport, lands (including any 
        improvements thereto) which produce revenues that are used for 
        airport development purposes, or both.

SEC. 413. REGULATIONS AFFECTING INTRASTATE AVIATION IN ALASKA.

  In modifying regulations contained in 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. 414. WESTCHESTER COUNTY AIRPORT, NEW YORK.

  Notwithstanding sections 47107(b) and 44706(d) of title 49, United 
States Code, and any other law, regulation, or grant assurance, all 
fees received by Westchester County Airport in the State of New York 
may be paid into the treasury of Westchester County pursuant to section 
119.31 of the Westchester County Charter if the Secretary finds that 
the expenditures from such treasury for the capital and operating costs 
of the Airport after December 31, 1990, have been and will be equal to 
or greater than the fees that such treasury receives from the Airport.

SEC. 415. BEDFORD AIRPORT, PENNSYLVANIA.

  If the Administrator of the Federal Aviation Administration 
decommissions an instrument landing system in Pennsylvania, the 
Administrator shall, if feasible, transfer and install the system at 
Bedford Airport, Pennsylvania.

SEC. 416. LOCATION OF DOPPLER RADAR STATIONS, NEW YORK.

  (a) Prohibition.--No Federal funds may be used for the construction 
of a Doppler radar station at the Coast Guard station in Brooklyn, New 
York.
  (b) Construction of Offshore Platforms.--
          (1) Study.--The Administrator of the Federal Aviation 
        Administration shall conduct a study of the feasibility of 
        constructing 2 offshore platforms to serve as sites for the 
        location of Doppler radar stations for John F. Kennedy 
        International Airport and LaGuardia Airport in New York City, 
        New York.
          (2) Report.--Not later than 1 year after the date of the 
        enactment of this Act, the Administrator shall transmit to 
        Congress a report on the results of the study conducted under 
        paragraph (1), including proposed locations for the offshore 
        platforms. Such locations shall be as far as possible from 
        populated areas while providing appropriate safety measures for 
        John F. Kennedy International Airport and LaGuardia Airport.
  (c) Limitation.--The Administrator shall not begin construction of a 
Doppler radar station for John F. Kennedy International Airport or 
LaGuardia Airport at any location before submitting a report under 
subsection (b).

SEC. 417. WORCESTER MUNICIPAL AIRPORT, MASSACHUSETTS.

  The Secretary of Transportation shall take such actions as may be 
necessary to improve the safety of aircraft landing at Worcester 
Municipal Airport, Massachusetts, including, if appropriate, providing 
air traffic radar service to such airport from the Providence Approach 
Radar Control in Coventry, Rhode Island.

SEC. 418. AIRCRAFT NOISE OMBUDSMAN.

  Section 106 is amended by redesignating subsection (k), as amended by 
section 103 of this Act, as subsection (l) and by inserting after 
subsection (j) the following:
  ``(k) Aircraft Noise Ombudsman.--
          ``(1) Establishment.--There shall be in the Administration an 
        Aircraft Noise Ombudsman.
          ``(2) General duties and responsibilities.--The Ombudsman 
        shall--
                  ``(A) be appointed by the Administrator;
                  ``(B) serve as a liaison with the public on issues 
                regarding aircraft noise; and
                  ``(C) be consulted when the Administration proposes 
                changes in aircraft routes so as to minimize any 
                increases in aircraft noise over populated areas.''.

               TITLE V--METROPOLITAN WASHINGTON AIRPORTS

SEC. 501. SHORT TITLE.

  This title may be cited as the ``Metropolitan Washington Airports 
Amendments Act of 1996''.

SEC. 502. AMENDMENT OF METROPOLITAN WASHINGTON AIRPORTS ACT OF 1986.

  Except as otherwise expressly provided, whenever in this title an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall be considered to 
be made to a section or other provision of the Metropolitan Washington 
Airports Act of 1986 (100 Stat. 3341-376 et seq.).

SEC. 503. USE OF LEASED PROPERTY.

  Section 6005(c)(2) is amended by inserting before the period at the 
end of the second sentence the following: ``which are not inconsistent 
with the needs of aviation''.

SEC. 504. BOARD OF DIRECTORS.

  (a) Appointment of Additional Members.--Section 6007(e)(1) is 
amended--
          (1) in the matter preceding subparagraph (A) by striking 
        ``11'' and inserting ``15'';
          (2) in subparagraph (D) by striking ``one member'' and 
        inserting ``five members''.
  (b) Restrictions.--Section 6007(e)(2) is amended by striking ``except 
that'' and all that follows through the period and inserting ``except 
that the members appointed by the President shall be registered voters 
of States other than Maryland, Virginia, or the District of 
Columbia.''.
  (c) Terms.--Section 6007(e)(3) is amended--
          (1) in subparagraph (B) by striking ``and'' at the end;
          (2) in subparagraph (C) by striking the period at the end and 
        inserting ``; and''; and
          (3) by adding at the end the following:
                  ``(D) by the President after the date of the 
                enactment of this subparagraph, 2 shall be appointed 
                for 4 years.
        A member may serve after the expiration of that member's term 
        until a successor has taken office.''.
  (d) Vacancies.--Section 6007(e) is further amended by redesignating 
paragraphs (4) and (5) as paragraphs (7) and (8), respectively, and by 
inserting after paragraph (3) the following:
          ``(4) Vacancies.--A vacancy in the board of directors shall 
        be filled in the manner in which the original appointment was 
        made. Any member appointed to fill a vacancy occurring before 
        the expiration of the term for which the member's predecessor 
        was appointed shall be appointed only for the remainder of such 
        term.''.
  (e) Political Parties of Presidential Appointees.--Section 6007(e) is 
further amended by inserting after paragraph (4), as inserted by 
subsection (d) of this section, the following:
          ``(5) Political parties of presidential appointees.--Not more 
        than 3 of the members of the board appointed by the President 
        may be of the same political party.''.
  (f) Duties of Presidential Appointees.--Section 6007(e) is further 
amended by inserting after paragraph (5), as inserted by subsection (e) 
of this section, the following:
          ``(6) Duties of presidential appointees.--In carrying out 
        their duties on the board, members of the board appointed by 
        the President shall ensure that adequate consideration is given 
        to the national interest.''.
  (g) Required Number of Votes.--Section 6007(e)(8), as redesignated by 
subsection (d) of this section, is amended by striking ``Seven'' and 
inserting ``Nine''.

SEC. 505. FEDERAL ADVISORY COMMISSION.

  (a) In General.--Section 6007(f) is amended by striking the 
subsection designation, heading, and paragraph (1) and inserting the 
following:
  ``(f) Federal Advisory Commission.--
          ``(1) Composition.--There is established a Federal Advisory 
        Commission of the Airports Authority which shall represent the 
        interests of users of the Metropolitan Washington Airports and 
        shall be composed of 9 members appointed by the Secretary of 
        Transportation.''.
  (b) References to Board of Review.--The Act is amended--
          (1) in section 6007(f) by striking ``Board of Review'' each 
        place it appears and inserting ``Federal Advisory Commission'';
          (2) in section 6007(f)(3)--
                  (A) in the third sentence by striking ``Board'' each 
                place it appears and inserting ``Commission''; and
                  (B) in the fourth sentence by striking ``Board'' the 
                second place it appears and inserting ``Commission'';
          (3) in the second sentence of section 6007(f)(6), as 
        redesignated by section 508(a) of this Act, by striking 
        ``Board'' and inserting ``Commission'';
          (4) in section 6007(f)(7), as redesignated by section 508(a) 
        of this Act, by striking ``Board'' the second place it appears 
        and inserting ``Commission''; and
          (5) in section 6009(b) by striking ``Board of Review'' and 
        inserting ``Federal Advisory Commission''.
  (c) Other Conforming Amendments.--Section 6007(f)(2) is amended--
          (1) in subparagraph (A)--
                  (A) by striking ``paragraphs (1)(A) and (1)(B)'' and 
                inserting ``paragraph (1)''; and
                  (B) by striking the second sentence; and
          (2) in subparagraph (D) by striking ``and lists have been 
        provided for appointments to fill such vacancies''.

SEC. 506. REVIEW PROCEDURE.

  (a) Submission of Actions.--Section 6007(f)(4)(A) is amended to read 
as follows:
                  ``(A) Submission required.--
                          ``(i) In general.--An action of the Airports 
                        Authority described in subparagraph (B) shall 
                        be submitted to the Federal Advisory 
                        Commission, the Speaker of the House of 
                        Representatives, and the President Pro Tempore 
                        of the Senate at least 60 days before the 
                        action is to become effective.
                          ``(ii) Urgent and compelling circumstances.--
                        An action submitted to the Federal Advisory 
                        Commission and Congress in accordance with 
                        clause (i) may become effective before the 
                        expiration of the 60-day period referred to in 
                        clause (i) if the board of directors certifies, 
                        in writing, to the Secretary and Congress that 
                        urgent and compelling circumstances exist that 
                        significantly affect the interests of the 
                        traveling public and will not permit waiting 
                        for the expiration of such 60-day period.''.
  (b) Recommendations.--Section 6007(f)(4)(C) is amended to read as 
follows:
                  ``(C) Recommendations.--The Federal Advisory 
                Commission may make to the board of directors and 
                Congress recommendations regarding an action within 30 
                calendar days of its submission under this paragraph. 
                Such recommendations may include a recommendation that 
                the action not take effect.''.
  (c) Effect of Recommendations.--
          (1) Repeal.--Section 6007(f)(4) is amended by striking 
        subparagraph (D) and by redesignating subparagraph (E) as 
        subparagraph (D).
          (2) Conforming amendment.--Section 6007(f)(5)(B) is amended 
        by striking ``paragraph (4)(D)(ii)'' and inserting ``paragraph 
        (4)''.
  (d) Expiration of Authority.--Section 6007(f)(4) is amended by adding 
at the end the following:
                  ``(E) Expiration of authority.--
                          ``(i) In general.--Except as provided in 
                        clause (ii), the authority of the Airports 
                        Authority to take any of the actions described 
                        in subparagraph (B) shall expire on April 30, 
                        1997.
                          ``(ii) Special rule.--If on any day after 
                        April 29, 1997, all of the members to be 
                        appointed to the board of directors by the 
                        President under subsection (e)(1)(D) are 
                        serving on the board, the authority of the 
                        board referred to in clause (i) shall be 
                        effective beginning on such day and shall 
                        expire on September 30, 1998.''.
  (e) Protection of Certain Actions.--Actions taken by the Metropolitan 
Washington Airports Authority and submitted to the Board of Review 
pursuant to section 6007(f)(4) of the Metropolitan Washington Airports 
Act of 1986 before the date of the enactment of this Act shall remain 
in effect and shall not be set aside solely by reason of a judicial 
order invalidating certain functions of the Board of Review.

SEC. 507. CONGRESSIONAL DISAPPROVAL PROCEDURES.

  (a) Committee Referral.--Section 6007(f)(5)(C) is amended--
          (1) by striking ``Public Works and Transportation'' and 
        inserting ``Transportation and Infrastructure''; and
          (2) by striking ``Commerce, Science and Technology'' and 
        inserting ``Commerce, Science, and Transportation''.
  (b) House Procedure.--Section 6007(f)(5) is amended--
          (1) by striking subparagraphs (D), (E), and (F);
          (2) by redesignating subparagraphs (G) and (H) as 
        subparagraphs (E) and (F), respectively; and
          (3) by inserting after subparagraph (C) the following:
                  ``(D) House procedure.--When the Committee of the 
                House has reported a resolution, it is in order at any 
                time on or after the third day on which the report on 
                the resolution has been available to Members pursuant 
                to clause 2(l)(6) of House Rule XI, for the chairman of 
                the committee or a designee to move to proceed to the 
                consideration in the House of the resolution. The 
                motion is highly privileged, and is not subject to 
                debate or to intervening motion or otherwise subject to 
                points of order, nor shall it be in order to move to 
                reconsider the vote by which the motion is agreed to or 
                not agreed to. If the motion is agreed to, the 
                resolution shall be considered in the House and 
                debatable for not to exceed 2 hours to be equally 
                divided and controlled by the chairman and the ranking 
                minority member of the committee. The previous question 
                shall be considered as ordered on the resolution to 
                final passage without intervening motion. A motion to 
                reconsider the vote on passage of the resolution shall 
                not be in order.''.

SEC. 508. OTHER MATTERS RELATING TO FEDERAL ADVISORY COMMISSION.

  (a) Request for Consideration of Other Matters; Participation in 
Meetings.--Section 6007(f) is amended by striking paragraphs (6) and 
(7) and by redesignating paragraphs (8), (9), (10), and (11) as 
paragraphs (6), (7), (8), and (9), respectively.
  (b) Removal of Federal Advisory Commission Members.--Section 
6007(f)(9), as redesignated by subsection (a) of this section, is 
amended by striking ``by a two-thirds vote of the board of directors'' 
and inserting ``by the Secretary of Transportation''.

SEC. 509. EFFECT OF JUDICIAL ORDERS.

  (a) In General.--Section 6007 is amended by striking subsection (h) 
and by redesignating subsection (i) as subsection (h).
  (b) Conforming Amendment.--Section 6011 is amended by striking 
``Except as provided in section 6007(h), if'' and inserting ``If''.

SEC. 510. FEDERAL ADVISORY COMMITTEE ACT.

  Section 6007 is further amended by inserting after subsection (h), as 
redesignated by section 509(a) of this Act, the following:
  ``(i) Federal Advisory Committee Act.--The Federal Advisory Committee 
Act (5 U.S.C. App.) shall not apply to the Federal Advisory 
Commission.''.

SEC. 511. USE OF DULLES ACCESS HIGHWAY.

  The Act is further amended by adding at the end the following:

``SEC. 6013. USE OF DULLES ACCESS HIGHWAY.

  ``(a) Restrictions.--The Airports Authority shall continue in effect 
and enforce paragraphs (1) and (2) of section 4.2 of the Metropolitan 
Washington Airports Regulations, as in effect on February 1, 1995.
  ``(b) Enforcement.--The district courts of the United States shall 
have jurisdiction to compel the Airports Authority and its officers and 
employees to comply with the requirements of this section. An action 
may be brought on behalf of the United States by the Attorney General, 
or by any aggrieved party.''.

SEC. 512. AMENDMENT OF LEASE.

  The Secretary of Transportation shall amend the lease entered into 
with the Metropolitan Washington Airports Authority under section 
6005(a) of the Metropolitan Washington Airports Act of 1986 to secure 
the Airports Authority's consent to the amendments made to such Act by 
this Act.

SEC. 513. AVAILABILITY OF SLOTS.

  (a) In General.--Section 41714 of title 49, United States Code, is 
amended--
          (1) in subsections (a)(1), (b)(1), and (c)(1) by striking 
        ``(other than Washington National Airport)''; and
          (2) by redesignating subsection (h) as subsection (i) and by 
        inserting after subsection (g) the following:
  ``(h) Limitation on Authority To Grant Exemptions.--The Secretary 
shall not issue an exemption under this section to the requirements of 
subparts K and S of part 93 of title 14 of the Code of Federal 
Regulations (pertaining to slots at high density airports) if the grant 
of such exemption would adversely affect safety.''.
  (b) Conforming Amendment.--Section 6009(e)(1) is amended by striking 
``The Administrator'' and inserting ``Except as provided by section 
41714 of title 49, United States Code, the Administrator''.

TITLE VI--RECOMMENDATION TO COMMITTEE ON WAYS AND MEANS ON EXTENSION OF 
     AIRPORT AND AIRWAY TRUST FUND TAXES AND EXPENDITURE AUTHORITY

  The Committee on Transportation and Infrastructure of the House of 
Representatives recommends the following provisions, which are printed 
in roman and shall have no legal effect, to the Committee on Ways and 
Means of the House of Representatives for its consideration:

SEC. ____. EXTENSION OF AIRPORT AND AIRWAY TRUST FUND EXCISE TAXES.

  (a) Fuel Tax.--
          (1) Subparagraph (A) of section 4091(b)(3) of the Internal 
        Revenue Code of 1986 is amended to read as follows:
                  ``(A) The rate of tax specified in paragraph (1) 
                shall be 4.3 cents per gallon--
                          ``(i) after December 31, 1995, and before the 
                        date which is 30 days after the date of the 
                        enactment of the Federal Aviation Authorization 
                        Act of 1996, and
                          ``(ii) after December 31, 1999.''
          (2) Section 4081(d) of such Code is amended--
                  (A) by adding at the end the following new paragraph:
          ``(3) Aviation gasoline.--After December 31, 1999, the rate 
        of tax specified in subsection (a)(2)(A)(i) on aviation 
        gasoline shall be 4.3 cents per gallon.'', and
                  (B) by inserting in paragraph (1) ``(other than the 
                tax on aviation gasoline)'' after ``subsection 
                (a)(2)(A)''.
          (3) Section 4041(c)(5) of such Code is amended by inserting 
        ``, and during the period beginning on the date which is 30 
        days after the date of the enactment of the Federal Aviation 
        Authorization Act of 1996 and ending on December 31, 1999'' 
        after ``December 31, 1995''.
  (b) Ticket Taxes.--Sections 4261(g) and 4271(d) of such Code are each 
amended by striking ``January 1, 1996'' and inserting ``January 1, 
1996, and to transportation beginning on or after the date which is 30 
days after the date of the enactment of the Federal Aviation 
Authorization Act of 1996 and before January 1, 2000''.
  (c) Transfers to Airport and Airway Trust Fund.--
          (1) Subsection (b) of section 9502 of such Code is amended by 
        striking ``January 1, 1996'' each place it appears and 
        inserting ``January 1, 2000''.
          (2) Paragraph (3) of section 9502(f) of such Code is amended 
        to read as follows:
          ``(3) Termination.--Notwithstanding the preceding provisions 
        of this subsection, the Airport and Airway Trust Fund financing 
        rate shall be zero with respect to--
                  ``(A) taxes imposed after December 31, 1995, and 
                before the date which is 30 days after the date of the 
                enactment of the Federal Aviation Authorization Act of 
                1996, and
                  ``(B) taxes received after December 31, 1999.''
          (3) Subsection (d) of section 9502 of such Code is amended by 
        adding at the end the following new paragraph:
          ``(5) Transfers from airport and airway trust fund on account 
        of refunds of taxes on transportation by air.--The Secretary of 
        the Treasury shall pay from time to time from the Airport and 
        Airway Trust Fund into the general fund of the Treasury amounts 
        equivalent to the amounts paid after December 31, 1995, under 
        section 6402 (relating to authority to make credits or refunds) 
        or section 6415 (relating to credits or refunds to persons who 
        collected certain taxes) in respect of taxes under sections 
        4261 and 4271.''
  (d) Effective Dates.--
          (1) In general.--The amendments made by this section shall 
        take effect on the date of the enactment of this Act, except 
        that the amendment made by subsection (b) shall not apply to 
        any amount paid on or before such date.
          (2) Transfers.--The amendments made by subsection (c) shall 
        take effect on January 1, 1996.

SEC. ____. EXTENSION OF AIRPORT AND AIRWAY TRUST FUND EXPENDITURES.

  (a) Extension of Expenditure Authority.--Paragraph (1) of section 
9502(d) of the Internal Revenue Code of 1986 is amended by striking 
``October 1, 1996'' and inserting ``October 1, 1999''.
  (b) Extension of Trust Fund Purposes.--Subparagraph (A) of section 
9502(d)(1) of such Code is amended by adding before the semicolon at 
the end ``or the Federal Aviation Authorization Act of 1996''.

SEC. ____. RESTORATION AND EXTENSION OF EXEMPTION FOR COMMERCIAL 
                    AVIATION.

  (a) In General.--Paragraph (2) of section 4092(b) of the Internal 
Revenue Code of 1986 (relating to exemption from certain taxes on fuel 
used in commercial aviation) is amended to read as follows:
          ``(2) 4.3 cents per gallon of the rate specified in section 
        4091(b)(1) in the case of fuel sold--
                  ``(A) after September 30, 1995, and before the date 
                which is 30 days after the date of the enactment of the 
                Federal Aviation Authorization Act of 1996, and
                  ``(B) after December 31, 1999.''
  (b) Conforming Amendments.--
          (1) Subparagraph (B) of section 6421(f)(2) of such Code is 
        amended to read as follows:
                  ``(B) in aviation which is not noncommercial aviation 
                (as so defined) with respect to the tax imposed by 
                section 4081 at--
                          ``(i) the Leaking Underground Storage Tank 
                        Trust Fund financing rate, and
                          ``(ii) so much of the rate specified in 
                        section 4081(a)(2)(A) as does not exceed 4.3 
                        cents per gallon in the case of fuel 
                        purchased--
                                  ``(I) after September 30, 1995, and 
                                before the date which is 30 days after 
                                the date of the enactment of the 
                                Federal Aviation Authorization Act of 
                                1996, and
                                  ``(II) after December 31, 1999.''
          (2) Subparagraph (B) of section 6427(l)(4) of such Code is 
        amended to read as follows:
                  ``(B) so much of the rate specified in section 
                4091(b)(1) as does not exceed 4.3 cents per gallon in 
                the case of fuel purchased--
                          ``(i) after September 30, 1995, and before 
                        the date which is 30 days after the date of the 
                        enactment of the Federal Aviation Authorization 
                        Act of 1996, and
                          ``(ii) after December 31, 1999.''
  (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. ____. FLOOR STOCKS TAXES ON AVIATION FUEL.

  (a) Imposition of Tax.--
          (1) In general.--In the case of aviation fuel on which tax 
        was imposed under section 4091 of the Internal Revenue Code of 
        1986 before the tax-increase date described in subsection 
        (c)(1)(A) and which is held on such date by any person, there 
        is hereby imposed a floor stocks tax of 17.5 cents per gallon.
          (2) Commercial aviation fuel on january 1, 2000.--In the case 
        of commercial aviation fuel on which tax was imposed under 
        section 4091 of such Code before January 1, 2000, and which is 
        held on such date by any person, there is hereby imposed a 
        floor stocks tax of 4.3 cents per gallon.
  (b) Liability for Tax and Method of Payment.--
          (1) Liability for tax.--A person holding aviation fuel on a 
        tax-increase date to which the tax imposed by subsection (a) 
        applies shall be liable for such tax.
          (2) Method of payment.--The tax imposed by subsection (a) 
        shall be paid in such manner as the Secretary shall prescribe.
          (3) Time for payment.--The tax imposed by subsection (a) with 
        respect to any tax-increase date shall be paid on or before the 
        first day of the 7th month beginning after such tax-increase 
        date.
  (c) Definitions.--For purposes of this section--
          (1) Tax increase date.--The term ``tax-increase date'' 
        means--
                  (A) the date which is 30 days after the date of the 
                enactment of this Act, and
                  (B) January 1, 2000.
          (2) Aviation fuel.--The term ``aviation fuel'' has the 
        meaning given such term by section 4093 of such Code.
          (3) Commercial aviation fuel.--The term ``commercial aviation 
        fuel'' means aviation fuel which is held on January 1, 2000, 
        for sale or use in commercial aviation (as defined in section 
        4092(b) of such Code).
          (4) Held by a person.--Aviation fuel shall be considered as 
        ``held by a person'' if title thereto has passed to such person 
        (whether or not delivery to the person has been made).
          (5) Secretary.--The term ``Secretary'' means the Secretary of 
        the Treasury or his delegate.
  (d) Exception for Exempt Uses.--The tax imposed by subsection (a) 
shall not apply to aviation fuel held by any person on any tax-increase 
date exclusively for any use for which a credit or refund of the entire 
tax imposed by section 4091 of such Code is allowable for aviation fuel 
purchased on or after such tax-increase date for such use.
  (e) Exception for Certain Amounts of Fuel.--
          (1) In general.--No tax shall be imposed by subsection (a) on 
        aviation fuel held on any tax-increase date by any person if 
        the aggregate amount of aviation fuel held by such person on 
        such date does not exceed 2,000 gallons. The preceding sentence 
        shall apply only if such person submits to the Secretary (at 
        the time and in the manner required by the Secretary) such 
        information as the Secretary shall require for purposes of this 
        paragraph.
          (2) Exempt fuel.--For purposes of paragraph (1), there shall 
        not be taken into account fuel held by any person which is 
        exempt from the tax imposed by subsection (a) by reason of 
        subsection (d).
          (3) Controlled groups.--For purposes of this subsection--
                  (A) Corporations.--
                          (i) In general.--All persons treated as a 
                        controlled group shall be treated as 1 person.
                          (ii) Controlled group.--The term ``controlled 
                        group'' has the meaning given to such term by 
                        subsection (a) of section 1563 of such Code; 
                        except that for such purposes the phrase ``more 
                        than 50 percent'' shall be substituted for the 
                        phrase ``at least 80 percent'' each place it 
                        appears in such subsection.
                  (B) Nonincorporated persons under common control.--
                Under regulations prescribed by the Secretary, 
                principles similar to the principles of subparagraph 
                (A) shall apply to a group of persons under common 
                control where 1 or more of such persons is not a 
                corporation.
  (f) Other Law Applicable.--All provisions of law, including 
penalties, applicable with respect to the taxes imposed by section 4091 
of such Code shall, insofar as applicable and not inconsistent with the 
provisions of this section, apply with respect to the floor stock taxes 
imposed by subsection (a) to the same extent as if such taxes were 
imposed by such section 4091.

SEC. ____. REDUCTION IN AVIATION TICKET TAX IN CERTAIN CASES.

  (a) In General.--Part III of subchapter C of chapter 33 of the 
Internal Revenue Code of 1986 (relating to special provisions 
applicable to taxes on transportation by air) is amended by adding at 
the end the following new section:

``SEC. 4283. REDUCTION IN AVIATION TICKET TAX IN CERTAIN CASES.

  ``(a) General Rule.--For each fiscal year, the Secretary shall--
          ``(1) determine whether such fiscal year was a funding 
        shortfall year, and
          ``(2) in such a case, prescribe a tax rate which shall apply 
        under section 4261(a) to amounts paid during the first calendar 
        year beginning after the close of such fiscal year.
  ``(b) Funding Shortfall Year.--For purposes of this section--
          ``(1) In general.--The term `funding shortfall year' means 
        any fiscal year for which there is a funding shortfall.
          ``(2) Funding shortfall.--The term `funding shortfall' means, 
        with respect to any fiscal year, the amount by which--
                  ``(A) the aggregate amounts authorized to be 
                obligated under such section 48103 for the fiscal year, 
                exceeds
                  ``(B) the aggregate amounts available for obligation 
                under section 48103 of title 49, United States Code for 
                the fiscal year.
          ``(3) Special rules.--
                  ``(A) Treatment of prior year amounts.--For purposes 
                of paragraph (2)(A), an amount shall be treated as 
                authorized only for the first fiscal year for which it 
                is authorized.
                  ``(B) Treatment of sequestered amounts.--The 
                determination under paragraph (2) shall not take into 
                account the sequestration of any amount described 
                therein pursuant to an order under part C of title II 
                of the Balanced Budget and Emergency Deficit Control 
                Act of 1985 (or any successor law).
                  ``(C) Treatment of rescissions.--The determination 
                under paragraph (2)(A) shall not take into account the 
                rescission of any amount authorized to be obligated 
                under section 48103 of title 49, United States Code for 
                a fiscal year.
  ``(c) Determination of Tax Rate.--The rate prescribed by the 
Secretary under subsection (a) which shall apply in lieu of the rate 
otherwise applicable under section 4261(a) for any calendar year shall 
be the rate which the Secretary estimates will result in a reduction in 
tax revenues equal to the funding shortfall for the most recent fiscal 
year ending before such calendar year.''
  (b) Clerical Amendment.--The table of sections for part III of 
subchapter C of chapter 33 of such Code is amended by adding at the end 
the following new item:

``Sec. 4283. Reduction in aviation ticket tax in certain cases.''

  (c) Effective Date.--The amendments made by this section shall apply 
to fiscal years beginning after the date of the enactment of this Act.

                              Introduction

    The reported bill, the ``Federal Aviation Authorization Act 
of 1996,'' authorizes funding for our nation's airport and 
airway system. Improvements to this system are vital if we are 
to meet the aviation needs of this country for the remainder of 
this century and beyond. The first steps were already taken 
last year when the Committee approved H.R. 2276, the ``Federal 
Aviation Administration Revitalization Act of 1995'', H. Rept. 
104-475. This legislation was passed by the House unanimously 
on March 12, 1996. It would revitalize the Federal Aviation 
Administration (FAA) by making it independent and giving it new 
flexibility in the areas of procurement and personnel. The 
purpose of the reported bill is to make equally significant 
improvements in the areas of airport and airway infrastructure.
    Improvements are clearly necessary. Last year, 578 million 
passengers flew in the U.S. By 2005, the FAA predicts an 
increase to 858 million passenger enplanements. According to 
the Department of Transportation, the 10 largest U.S. airlines 
now conduct 14,650 flights per day. If commuter, military, 
general aviation, and other flights are added, there are 
107,500 per day. This is expected to increase 18 percent by 
2002.
    One of the reasons air travel is growing is that airline 
deregulation has led to a steady decrease in the cost of 
traveling by air. In 1995, passenger air fares were 
approximately what they were 10 years ago, not accounting for 
inflation.
    Given the expected growth in passenger enplanements and 
aircraft operations, it is crucial that this country properly 
invest in its aviation infrastructure. The FAA Administrator 
has frequently stated that the most significant constraint in 
the aviation system is the lack of airport capacity.

                             Funding Levels

    To address these needs, the reported bill authorizes $29.5 
billion over the next three years for airport improvements, air 
traffic control facilities & equipment, and the salaries and 
expenses of operating the FAA. Funding for airport improvements 
and facilities & equipment is derived entirely from the Airport 
& Airway Trust Fund which was created in 1970. Funds for 
operating the FAA come partly from the trust fund and partly 
from the general fund. The trust fund is supported entirely by 
the following taxes on aviation users:
          10% passenger ticket tax;
          6.25% freight waybill tax;
          $6 international departure tax; and
          General aviation fuel tax of 15 cents per gallon on 
        gas and 17.5 cents per gallon on jet fuel. (An 
        additional 4.3 cents per gallon is paid into the 
        general fund.)
    If these taxes had been in effect for the whole year, they 
would have raised about $5.9 billion this year in the following 
amounts:
          $5.1 billion from the passenger ticket tax;
          $353 million from the freight waybill tax;
          $204 million from the general aviation fuel taxes; 
        and
          $247 million from the international departure tax.
    However, most of these taxes expired at the end of 1995 and 
have not yet been reauthorized. Fourteen cents of the general 
aviation fuel tax is now going into the highway trust fund. The 
Aviation Trust Fund continues to earn interest on its cash 
balance. Interest revenue in 1996 would have been about $772 
million. This means that Trust Fund taxes and interest revenue 
would total about $6.65 billion this year minus whatever money 
is lost until the taxes are renewed.
    The trust fund supports the following programs in the 
following amounts this year:
          Airport Improvement Program--$1.45 billion.
          Facilities and Equipment--$1.9 billion
          Research and Development--$186 million.
          FAA Operations--$2.2 billion.
          Essential Air Service--$22.6 million.
    Total obligations from the Trust Fund will therefore be 
about $5.8 billion.
    As can be seen, when the taxes are in effect, the trust 
fund is taking in more than it is paying out. This has often 
been the case in the past and has resulted in an uncommitted 
surplus that reached almost $7.7 billion in 1991. Since then, 
however, the uncommitted surplus has decreased. The uncommitted 
surplus at the beginning of this year was about $5 billion. It 
has been decreasing by about $500 million per month since the 
taxes expired.
    There were several reasons for the decrease in the surplus 
even when the taxes were in effect. The primary reason was the 
dramatic increase in trust fund support for non-capital 
programs. Funding out of the trust fund for FAA operations has 
increased from $807 million in 1990 to $2.2 billion this year. 
And, as a result of the 1990 budget agreement, almost $2 
billion was transferred from the Trust Fund to the General 
Fund.
    This use of the Trust Fund is a significant departure from 
past practice. When it was created in 1970, the Trust Fund was 
viewed as a fund to pay for improvements to the aviation 
infrastructure. However, as can be seen, it is now increasingly 
being viewed as a source of money to pay for the operations of 
the FAA or of the Government generally.
    For many years, total AIP spending had been trending upward 
but in recent years it has been decreasing. In 1982, $450 
million was authorized and appropriated for AIP. AIP spending 
peaked at $1.9 billion in 1992. For 1996, $2.21 billion was 
authorized but the obligation ceiling in the Appropriations Act 
limited AIP spending to $1.45 billion. This was the same as the 
previous year.
    The Committee strongly believes that the money airline 
passengers, shippers, aircraft owners, and other aviation users 
pay into the Trust Fund should be returned to them in the form 
of aviation infrastructure improvements. This was the promise 
to them when the trust fund was created. Failure to keep this 
promise is unfair to them now.
    Unfortunately, the current on-budget status of the trust 
fund provides no assurance that the money will be spent as 
promised. Under the present system, the trust funds are viewed 
by many as merely an accounting mechanism. Overall budget caps 
are imposed with no regard for the aviation revenue the trust 
fund receives or the pressing needs of the airport and airway 
system. This provides perverse incentives to spend less than is 
taken in so as to stay within the budget caps, make the general 
fund deficit appear smaller, or spend more on non-aviation 
projects. This has occurred in the past and has resulted in the 
large balances now in the fund.
    Taking the trust fund off-budget would remove those 
incentives. It would remove trust fund spending from the budget 
caps and permit additional funding for aviation improvements as 
long as there were adequate balances in the fund. This should 
create a closer match between the income to the trust fund and 
the spending from the fund, which the Committee views as the 
most equitable outcome.
    The reported bill recommends a reauthorization of the 
expired trust fund taxes and sets the spending at levels that 
will ensure a close match with the projected income to the 
trust fund. For 1997, this means spending on AIP should be 
$2.28 billion, spending on facilities and equipment should be 
$2.068 billion, and spending on FAA operations should be $5.158 
billion (with no change in the formula establishing the trust 
fund share of FAA operations). If spending on the airport 
improvement program is below authorized levels, the bill 
recommends that the taxes be reduced so that taxes and revenue 
would come back into balance. In this way, the bill would 
ensure adequate funding levels and fairness to the users, 
thereby furthering the principles established by the House's 
vote in support of taking the trust funds off-budget earlier 
this year.
    The following chart sets forth the impact of the funding 
levels in this bill on the aviation trust fund.

----------------------------------------------------------------------------------------------------------------
                                                                           In fiscal year--                     
                                                     -----------------------------------------------------------
                                                         1995        1996        1997        1998        1999   
----------------------------------------------------------------------------------------------------------------
Obligational Authority from Trust Fund:                                                                         
    FAA Programs (After rescissions):                                                                           
        Airport Improvement Program (Obligation                                                                 
         Limitation)................................     $1,450      $1,450      $2,280      $2,347      $2,412 
            Contract Authority......................     $1,450      $2,214      $2,280      $2,347      $2,412 
        Facilities and Equipment Appropriation......     $1,960      $1,866      $2,068      $2,129      $2,191 
        Research, Engineering, & Development                                                                    
         Appropriation\1\...........................       $252        $186        $186        $186        $186 
        Operations and Maintenance Appropriation                                                                
         from TF....................................     $2,450      $2,223      $2,250      $2,331      $2,394 
            Total Ob. Auth. for FAA Programs........     $6,112      $5,725      $6,784      $6,993      $7,183 
            Total Ob. Auth. for Non-FAA Programs....        $72         $66         $63         $58         $52 
                                                     -----------------------------------------------------------
            Total Oblig. Authority..................     $6,185      $5,791      $6,847      $7,051      $7,235 
                                                     ===========================================================
Revenue to Trust Fund from Excise Taxes\2\                                                                      
    Passenger Ticket................................     $4,768      $1,188      $5,431      $5,726      $6,071 
    Waybill Freight and Mail........................       $361         $87        $374        $402        $433 
    General Aviation Fuel...........................       $172         $43        $175        $179        $183 
    International Department\3\.....................       $233         $64        $271        $287        $302 
                                                     -----------------------------------------------------------
        Total tax revenues..........................     $5,534      $1,382      $6,252      $6,594      $6,988 
        Reallocation between GF and TF\4\...........         $0       ($396)         $0          $0          $0 
        Total tax revenues after reallocation.......     $5,534      $1,778      $6,252      $6,594      $6,988 
                                                     ===========================================================
Interest Revenue on Trust Fund Cash Bal.............       $757        $781        $526        $537        $543 
Adjustments to Uncommitted Balance:                                                                             
    Unobiligated Contract Authority AIP.............        ($7)      ($764)         $0          $0          $0 
        Cumulative Balance of Unob. Con. Auth. AIP..        ($7)      ($107)      ($107)      ($107)      ($107)
        Rescission/Lapsing of Unob. Con. Auth. AIP..     $1,383        $664          $0          $0          $0 
     Unobiligated Contract Authority SCAS...........        ($3)         $0          $0         ($3)        ($8)
        Cumulative Balance of Unob. Con. Auth. SCAS.        ($4)         $3          $3          $0         ($8)
         Rescission/Lapsing of Unob. Con. Auth SCAS.         $5          $7          $1          $0          $0 
    AIP Oblig. Lim. Less AIP Total Ob...............        $10          $0          $0          $0          $0 
    Miscellaneous Adj. To Uncom. Balance............       ($36)        ($4)        ($1)         $0          $0 
End of Year Uncommitted Balance.....................     $5,127      $1,799      $1,729      $1,805      $2,093 
End of Year Cash Balance............................    $11,365      $7,787      $8,416      $8,691      $9,231 
Summary FAA Budget Information:                                                                                 
    Total Operations and Maintenance Appropriation..     $4,572      $4,643      $5,158      $5,344      $5,538 
    Total FAA Appropriation.........................     $8,234      $8,144      $9,692     $10,006     $10,327 
        Share from Trust Fund.......................     $6,112      $5,725      $6,784      $6,993      $7,183 
        Share from General Fund.....................     $2,122      $2,420      $2,908      $3,013      $3,144 
    Percent FAA Budget from Trust Fund..............         74          70          70          70          70 
     TF Operations as Percentage of Capital Programs         67          63          50          50          50 
    Percent FAA Operations from Trust Fund..........         54          48          44          44          43 
----------------------------------------------------------------------------------------------------------------
\1\ Assume H.R. 3322 FY 97 authorization until 1999.                                                            
\2\ Assumes taxes restored as of October 1, 1996.                                                               
\3\ Excludes receipts from proposed $10 per passenger increase in departure tax.                                
\4\ Includes $396 million transfer to TF from GF by Treasury in May 1996 to correct for prior transfer error.   
  Other FY 96 adjustments may be forthcoming.                                                                   

                         Airport Privatization

    Despite the effort in the reported bill to authorize and 
ensure adequate funding for the airport improvement program, 
the Committee recognizes that funding may be limited. 
Therefore, the bill explores alternate methods to ensure 
adequate infrastructure investment. For example, the bill 
includes a test program for airport privatization.
    Almost all airports are now publicly owned and operated 
either by a State or local agency or by a regional authority. 
There are a few small airports in this country that are 
privately owned. Some airports in foreign countries have been 
privatived.
    Although most U.S. airports are privately managed. 
Concession and parking lots are examples of functions that are 
usually handled by the private sector. Some airports, such as 
Indianapolis, have contracted with private firms to manage the 
whole airport.
    In the Committee's view, permitting airports to be 
privatized, either by sale or a long-term lease, could tap into 
additional sources of capital for infrastructure improvements. 
It could also lead to better management, improved customer 
service, and lower costs of operating at airports. While 
relatively untested, a limited program such as the one in the 
reported bill would provide an opportunity to prove this 
thesis. If success was demonstrated, the program could be 
expanded.
    Currently, there are several legal obstacles to airport 
privatization. One is current law that prohibits private 
airports owners from receiving AIP entitlement grants or 
assessing passenger facility charges (PFCs). A second is the 
requirement that Federal grants must be repaid if the airport 
is sold. A third is the prohibition on revenue diversion that 
could block the current owner from receiving any profits from 
the sale and would prevent the new owner from providing any 
reward to its shareholders for a profitable operation. A final 
obstacle is the tax laws that may prevent a private owner from 
issuing tax exempt bonds the way a public airport can.
    The bill addresses the first obstacle by changing the law 
to permit pritvatized airports to receive AIP entitlement 
grants and charge PFCs. There is no reason that the ownership 
structure of an airport should effect its rights under the AIP 
and PFC laws. The users of these airports should enjoy the 
benefits of the AIP and PFC programs as long as these 
facilities continue to operate as airports.
    Likewise, there is no reason that Federal grants should be 
returned. Under this bill, the Federal government will still be 
getting what it paid for when it made the grant, that is an 
operating airport facility. Accordingly, the bill exempts those 
airports privatized under its provisions from the requirement 
that Federal grants be repaid. This does not provide a windfall 
to the purchaser of the airport. That purchaser is not 
receiving those assets for free but, in all likelihood, will 
instead be investing substantial sums for those facilities and 
will be obligated to continue to maintain and improve them.
    The reported bill also exempts airports from the revenue 
diversion prohibition but only for the limited purpose of 
permitting the current owner to receive some of the proceeds of 
the sale and the new owner to receive some compensation for its 
efforts. The Committee recognizes that airport users may be 
concerned that an airport could use its monopoly power to 
increase their fees to unreasonable levels. Therefore, the bill 
includes provisions to ensure that no money can be diverted to 
the original owner and fees cannot be raised faster than the 
rate of inflation unless a super-majority of the airlines at 
that airport agree.
    The tax law changes are a more difficult issue for this 
Committee to address since such matters are not within our 
jurisdiction. The Committee is aware that Revenue Procedures of 
the Internal Revenue Service (IRS) permit tax-exempt bonds at a 
privatized facility to retain their tax-exempt status if the 
facility continues to be used for its original purpose and the 
proceeds are expended for a purpose that would qualify for tax-
exempt financing. However, the discretion the IRS has under 
this revenue procedure creates uncertainty. The Committee would 
urge the IRS to implement its rules, and make other regulatory 
changes that may be necessary, in order to facilitate airport 
privativation transactions and infrastructure improvements at 
privatized airports.
    Given the relative novelty of the airport privatization 
concept, the bill places strict limits on it. Only six airports 
can be privatized, one of which must be a general aviation 
airport. Privatization is completely voluntary. No airport or 
airport owner can be forced to privatize.
    It is also important to note that privatization 
transactions are subject to DOT approval. The Committee would 
expect DOT to exercise its discretion in this area judiciously 
and approve only those transactions where it finds that the 
sponsor and new owner have the interests of the airport and the 
aviation system in mind. The bill provides several factors for 
DOT to consider in making this finding. These include the 
commitment to safety and noise abatement of the new owner and 
an assurance of equal access to the airport. The bill does not 
require size or geographical diversity as factors for the 
Secretary to consider in selecting airports for participation 
in the program. While those would be desirable, the Committee 
did not wish the program to be too restrictive in this respect. 
Also, the bill does not bar airlines from participating in 
airport privatization transactions to the extent that that 
would be permitted by other laws such as anti-trust statues.
    Notwithstanding the restrictions on privation that are 
imposed by the bill, the Committee is confident that 
transactions can be put together that will be beneficial to the 
public owner of the airport, the new private owner, as well as 
the airlines and other users of the airport such as the 
traveling public.

                              Select Panel

    In additional to privatization, the Committee is interested 
in exploring other methods of enhancing airport funding. 
Therefore, a Select Panel of aviation experts, appointed by 
both the Executive and Legislative branches, is established by 
this bill. The panel would be expected to first assess the 
extent of airport capital needs and thereby help resolve the 
dispute between the airport and airline communities over this 
issue. In this effort, the panel would be assisted by an 
independent assessment of airport capital needs to be conducted 
by the General Accounting Office. After determining the needs, 
the panel would be expected to evaluate and recommend the best 
way to meet those needs.
    Similary, the panel is also directed to study the needs of 
the FAA as a whole and the best way to meet those needs. There 
is a need to get a better idea of the cost to the government of 
providing air traffic control services. Also, questions have 
been raised about the AFF's budgetary needs over the next few 
years. The FAA has indicated that if present budgetary trends 
continue, the agency will need $12 billion more than it expects 
to receive in the anticipated Congressional budget process 
between 1996 and 2002. While most in the aviation community 
acknowledge that there will be tremendous budgetary pressures 
on the FAA, many believe a $12 billion shortfall may be 
exaggerated.
    The panel would be expected to address these issues with 
the help of an audit of the agency conducted by an entity 
independent of FAA and DOT. Once the costs and needs of the 
agency are determined, the panel should be able to recommend 
ways to fund the agency and meet its needs.

                           Selection Criteria

    In the event that AIP funding should remain low, the 
Committee considers it important to provide FAA with additional 
guidance in the distribution of limited discretionary funds. 
Even if AIP funding should increase, it is still important that 
the money be directed toward the most important projects. 
Accordingly, the bill includes three new selection criteria for 
discretionary grants, a selection criteria for grants to non-
hub airports from the small airport fund, and a cost-benefit 
requirement for new letters of intent.
    There are many dynamically growing regions of the country 
where an airport is attempting to provide improved airfield 
facilities needed to meet the area's air transportation 
demands. For example, Lewis University Airport, located in Will 
County, Illinois, is in an area experiencing rapid urbanization 
where many homes and large industrial developments are popping 
up at a rapid pace and the existing airport cannot keep up with 
the requirements of its corporate neighbors. This is an example 
of the sort of reliever airport that would be a good candidate 
for funding from the discretionary fund or the small airport 
fund under these criteria.
    The FAA should also consider the savings or program 
efficiencies that could be achieved by other Federal agencies 
in deciding the cost and benefits of an AIP discretionary 
grant. For example, the Immigration and Naturalization Service 
(INS) often must transport its detainees. If it had direct 
access to an airport near its ultimate destination rather than 
flying them to a distant airport and then using surface modes 
to its ultimate destination, it could save time and money. 
Airport improvement projects that would provide such benefits 
should receive priority consideration.

                            Funding Formula

Current law

    Entitlements. The Airport and Airway Improvement Act 
divides AIP money into two broad categories. They are 
entitlement funds and discretionary funds. Entitlement funds 
are further divided into four sub-categories. They are:
          Primary airport entitlements;
          Cargo service airport entitlements;
          State entitlements; and
          Alaskan airport entitlements.
    Primary airports. If a public airport has commercial air 
service with at least 10,000 passenger boardings per year, it 
is considered a primary airport. These airports are entitled to 
receive AIP money each year in accordance with the following 
formula:
          $7.80 for each of the first 50,000 passengers 
        boarded;
          $5.20 for each of the next 50,000 passengers boarded 
        there;
          $2.60 for each of the next 400,000 passengers 
        boarded; and
          65 cents for each additional passenger boarded.
    Regardless of the number of passengers boarded, the minimum 
entitlement is supposed to be $500,000 per year and no primary 
airport is entitled to more than $22 million per year.
    To receive the money, an airport must have a project, such 
as a runway, terminal, or noise abatement project, that is 
eligible for AIP funding under the law. An airport can defer 
the right to receive its entitlement money for 3 years. 
Entitlement money deferred to a later year is referred to as 
carryover entitlements.
    There are 421 primary airports.
    Cargo entitlements. Cargo service airports are airports 
that are served by cargo-only (freighter) aircraft which all 
together weigh more than 100 million tons. These airports are 
entitled to share in a pot of money that equals 3.5% of total 
AIP funds. A cargo service airport shares in this pot in the 
proportion to which the total weight of cargo-only aircraft 
landing there is to the total weight of such aircraft at all 
other airports. No airport may receive more than 8% of this 
3.5%.
    The passenger and cargo entitlements cannot exceed 44% of 
the total available for AIP. If the 44% cap would be exceeded, 
primary airports must take a proportionate cut in their 
entitlement money so that the total stays within the cap.
    State entitlement. The States, territories, and possessions 
share in a pot of money that is equal to 12% of total AIP 
funds. Each State's share of this pot is based on a formula 
that takes into account the population and land area of the 
State. Money from this entitlement goes to general aviation 
airports, that is, airports that are used by private planes 
with little or no commercial air service.
    General aviation airports that are seeking AIP money from 
this entitlement usually apply directly to the FAA. Some States 
require their airports to channel their AIP applications 
through the State aviation agency. The FAA then decides which 
airports will get the money. Seven States (Illinois, Michigan, 
Missouri, New Jersey, North Carolina, Texas, and Wisconsin) 
participate in the State Block Grant program. Under this 
program, the FAA gives the State aviation agency the 
responsibility to decide which general aviation airports will 
receive AIP grants.
    Alaska entitlement. By law, Alaska airports are entitled to 
receive at least the same amount of money that they received in 
1980. This year, they will receive about $10.5 million. The 
$10.5 million is in addition to whatever those airports will 
receive under the above entitlements.
    Discretionary. Any money left over after the above 
entitlements are funded can be spent by the FAA at is own 
discretion. However, this discretionary money is subject to 
five set-asides.
    Noise set-aside. The law sets aside 12.5% of total AIP 
funds for noise projects. These could include such things as 
buying property for a noise buffer and sound-proofing 
buildings.
    Relievers. A reliever airport is a smaller airport, located 
near a major airport, that the FAA has designated to relieve 
congestion at that larger airport. Five percent of AIP funds 
are set-aside to fund improvements at reliever airports. Prior 
to 1994, the set-aside had been ten percent. This year, the 
Appropriations Act further capped reliever airport funding at 
$48 million. There are 329 reliever airports.
    Small commercial service. Small commercial service airports 
are usually larger than general aviation airports but smaller 
than primary airports. They are airports with commercial air 
service (usually by commuter carriers) with more than 2,500 
passenger boardings per year but less than 10,000 boardings per 
year. The set-aside for these airports is 1.5%. Prior to 1994, 
this set-aside was 2.5%. There are 154 of these airports.
    Planning. Three-fourths of one percent is set-aside for 
airport system planning projects.
    Military airports. Under the military airport program, FAA 
selects 15 current or former military airports to share in a 
2.5% set-aside. The purpose of this program is to increase 
overall system capacity by promoting joint civilian-military 
use of military airports or by converting former military 
airports to civilian use. This year, the Appropriations Act 
capped military airport funding at $26 million.
    Pure discretionary. After the entitlements and set-asides 
are funded, the remaining money can be spent as the FAA sees 
fit. This is often referred to as pure discretionary AIP money. 
Even here, however, there are restrictions. The law requires 
that 75% of this discretionary money must be spent on airport 
projects that will enhance capacity, safety, or security, or 
reduce noise.
    Minimum discretionary. Total AIP funding has dropped from a 
high of $1.9 billion in 1992 to $1.45 billion this year. At the 
same time that AIP funding has been declining, FAA has been 
issuing letters of intent (LOIs) to several airports, 49 U.S.C. 
47110(e). An LOI is a commitment to pay a certain amount of AIP 
money to an airport over a set number of years in order to fund 
an important project. These commitments are predominantly 
funded from the discretionary portion of AIP.
    However, as the overall AIP program declined, an increasing 
proportion of the money was allocated to the entitlements and 
set-asides. This left little discretionary money and prompted 
concerns that the FAA would be unable to meet its LOI 
commitments.
    As a result, the 1994 AIP reauthorization mandated that the 
discretionary fund be at least $325 million per year. If the 
above-described entitlement and set-aside formulas would not 
leave at least $325 million in the discretionary fund, all 
entitlements and set-asides (except for the Alaska entitlement) 
must be cut by a proportionate amount. This year entitlements 
were cut by about 23% to ensure a minimum discretionary fund of 
$325 million. AIP would have to be about $1.8 billion to avoid 
this cut.
    Federal share. As a general rule, the Federal share of an 
AIP project's cost is 90%. However, at medium and large hub 
airports (defined as airports that enplane 0.25% of the total 
annual enplanements in the U.S.) the Federal share is 75%. In 
the case of a project involving an airport terminal building, 
the Federal share is 85% at non-hubs (defined as airports with 
0.05% or less of the total annual enplanements in the U.S.) and 
75% at hubs.
    It should be noted that the reference to hubs here and 
elsewhere refers to the number of passengers at that airport, 
not to whether an airline uses the airport as a connecting 
complex.
    Passenger facility charge. In 1990, the Committee became 
concerned that the AIP program would not be able to meet the 
future infrastructure needs of the nation's airports. 
Consequently, the 1990 AIP reauthorization law permitted an 
airport to assess a fee on passengers. This is known as the 
passenger facility charge (PFC). PFCs are collected by the 
airlines and paid directly to the airport without going through 
the Federal treasury. They are intended to supplement AIP by 
providing more money for runways, taxiways, terminals, gates, 
road access and other airport improvements.
    No airport may charge a PFC of more than $3 per passenger 
and no passenger has to pay more than $12 in PFCs per round-
trip regardless of the number of airports through which the 
passenger connects. No airport can charge a PFC until it is 
approved by FAA.
    If a medium or large hub airport charges a PFC, it must 
forego 50% of its AIP entitlement. The foregone entitlements go 
into a special ``small airport fund'' to be distributed as 
follows:
         50% to non-hub airports;
         25% to general aviation airports;
         12.5% to small hub airports; and
         12.5% to the discretionary fund.
    This year medium and large hubs will return about $102 
million in entitlements for redistribution to smaller airports 
using this formula.

Problems with current formula

    As can be seen, the current funding formulas have become 
extremely complex. This occurred because additional funding 
categories were created over time as funding was rising but the 
entitlement caps and a desire to protect letters of intent and 
discretionary funds caused across-the-board cuts as funding 
decreased. The Committee has striven in this bill to simplify 
the funding formulas to make them easier to understand and 
apply.
    The Committee is also concerned that the smaller airports 
are not getting their fair share under the current AIP formula. 
This has occurred because (1) the reliever airport set-aside 
was cut from 10% to 5% and then a cap was placed on it by the 
Appropriations Act, (2) the small commercial service airport 
set-aside was cut from 2.5% to 1.5%, and (3) the 44% 
entitlement cap and the minimum discretionary fund caused 
across-the-board cuts in entitlements. Both non-hub primary and 
general aviation airports received less funding as a result.
    The burden of these cuts fell particularly hard on the 
smaller airports since they depend the most heavily on AIP 
funds. For example, in 1995, AIP grants supported 54% of non-
hub airport capital investment and 77% of general aviation 
airport capital investment. By contrast, AIP funding 
represented only 13% of the infrastructure investment at large 
hub airports. These large airports can obtain the bulk of their 
money from bonds, PFCs, or rates and charges such as landing 
fees. These are options that are not available to the small 
airports to any meaningful extent.

Proposed formula

    Therefore, in addition to simplifying the formula, the 
Committee has sought to direct more of the money to small 
airports without harming the interests of larger airports. The 
reported bill does this by deleting the entitlement cap and 
reducing the minimum discretionary fund, thereby increasing the 
entitlements of all airports, both large and small. This also 
has the effect of increasing the small airport fund since this 
fund is derived by large airports turning back half their 
entitlement when they choose to levy a PFC. Since larger 
airports receive a large entitlement under this bill, the 
amount being turned back to the small airport fund is larger. 
The bill also increases the allocation to the general aviation 
airport entitlement. It does this by increasing the percentage 
and by reducing the minimum discretionary fund so that this 
entitlement suffers a small across-the-board cut than under 
current law.
    Under the reported bill, there will still be four 
entitlement categories:
    Passenger entitlement. Primary airports (those with more 
than 10,000) passengers per year will continue to be entitled 
to AIP money in accordance with the following formula:
         $7.80 for each of the first 50,000 passengers.
         $5.20 for each of the next 50,000 passengers.
         $2.60 for each of the next 400,000 passengers.
         65 cents for each of the next 500,000 passengers.
         50 cents for each additional passenger.
    The minimum of $500 thousand per year and the maximum of 
$22 million per year will continue to apply. The only 
difference with current law is that airports with more than 1 
million passengers per year will receive 50 cents for each 
passenger over 1 million rather than 65 cents as is the case 
under current law. However, the 44% cap on entitlements is 
eliminated and the minimum discretionary fund is lowered so 
that even airports with more than 1 million passengers will 
receive a higher entitlement under this bill than they would 
under current law.
    Cargo entitlement. The cargo entitlement is lowered from 
3.5% to 2.5%. However, again, as a result of the elimination of 
the 44% entitlement cap and the lower discretionary fund, the 
net result is that cargo airports break even. In addition, this 
entitlement is modified so that those airports that do not meet 
the minimum landed weight requirement can still receive a grant 
under this entitlement if the Secretary finds that the airport 
would serve primarily freighter aircraft.
    State entitlement. This entitlement, which was previously 
limited to general aviation airports, would now include general 
aviation, reliever, and small commercial service airports. The 
entitlement is increased from 12% to 18.5% to cover this larger 
group of airports. The percentage of this entitlement that goes 
to airports in the U.S. territories and possessions is reduced 
so that they do not get a windfall as a result of the increase 
from 12 to 18.5 percent.
    The Alaskan entitlement is not changed.
    Set-asides. The new formula in this bill would reduce the 
number of set asides from five to two. The reliever, planning, 
and small commercial service set-asides are folded into the 
general aviation airport entitlement described above. The noise 
and military airport set-asides remain.
    The noise set-aside is changed from 12.5% of the total AIP 
funding level to 31% of the amount in the discretionary fund.
    The military airport set-aside is reduced to 10 current or 
former military airports that will enhance capacity or reduce 
delays in major metropolitan areas. These airports would share 
in 4% of the discretionary fund. Given the relatively low 
funding levels for MAP in the past and under this bill, the 
Committee would urge the FAA to construe leniently the current 
5-year limit on participation in the program. By this, the 
Committee means that if an airport selected for inclusion in 
MAP is not approved for funding in a particular year or years, 
such non-funded years should not count toward the 5-year 
maximum participation for that airport in the program. The 5-
year cap on participation should refer only to the years 
selected for funding. This would not prevent the airport from 
being dropped from the program for other authorized reasons.
    Discretionary fund. The money left after the above 
entitlements and set-asides are funded goes to the 
discretionary fund. The discretionary fund must include enough 
money to pay the FAA's commitments under letters of intent 
(LOIs) that were issued before this year. According to the FAA, 
in fiscal year 1997, the FAA is committed to pay $152,060,493 
in discretionary money for letters of intent if the $14 million 
committed to a reliever airport is included. The discretionary 
fund must include this amount plus at least $50 million. If it 
would not, all entitlements are cut by a proportionate amount 
to bring the discretionary fund up to this minimum level. The 
$50 million, or whatever amount is left after the letters of 
intent are funded, must be allocated in accordance with past 
allocations--15% for planning or to general aviation airports, 
30% to non-hub and small hub airports, and the remainder to any 
airport. It is also subject to the requirement that 75% of the 
discretionary fund be spent on projects that enhance capacity, 
safety, or security, or reduce noise.
    This formulation is designed to ensure that outstanding 
letters of intent are funded as the airport expects. For 
example, Greater Buffalo International Airport, has more than 
$16 million remaining in a $39 million letter of intent and 
expects to be paid $13,427,791 in FY 97, $2,452,294 in FY 98, 
and $797,114 in FY 99. The Committee urges the FAA to follow 
this payment schedule.
    The following spread sheets set forth how the AIP money 
would be distributed among the various entitlement and 
discretionary accounts using the formula in this bill and 
assuming various AIP funding scenarios--the $1.3 billion 
obligation ceiling for FY 97 passed by the House in the 
Appropriations bill, the $1.45 billion in effect during this 
fiscal year, and the $2.28 billion authorized by this bill.


                       State Block Grant Program

    Most general aviation airports receive grants directly from 
the FAA. However, 49 U.S.C. 47128 permits FAA to designate 
seven States to participate in the State block grant program. 
The Seven States are Illinois, Michigan, Missouri, New Jersey, 
North Carolina, Texas, and Wisconsin. These States receive a 
block of AIP money from the FAA. The State aviation agency, not 
the FAA, decides which airports will receive the grant. Only 
general aviation, reliever, and small commercial service 
airports can receive AIP grant under this program. 
Participation in the State block grant program does not affect 
how much money the airports in a State receive.
    The State block grant program was initially authorized in 
1987 with three States allowed to participate. In 1992, DOT 
issued a report on the program declaring it a success. As a 
result, the program was reauthorized and expanded to seven 
States. The program is now scheduled to expire at the end of 
this fiscal year at the same time that the overall AIP program 
expires.
    The Committee notes that the General Accounting Office has 
done a thorough study of this program and testified that it was 
a success. This confirmed findings of a May 1992 study of the 
Department of Transportation. In addition, the Administration 
has requested that the program be expanded to 10 States. 
Accordingly, the reported bill would make the program permanent 
and expand it to 10 States. There should be a presumption that 
the seven States now in the program would remain if they wish. 
The bill would also permit participating States to use their 
own priority system if that is not inconsistent with FAA's 
priorities and the priorities in the law.

                           Revenue Diversion

    The Committee continues to have significant concerns about 
the diversion of airport revenues for non-airport purposes and 
the failure of the FAA to take timely and firm action in some 
cases. Indeed, the controversy about various payments by the 
Los Angeles International Airport to the City continues with no 
visible threat of FAA enforcement action. The continuing 
efforts by airlines to seek redress for this problem from 
Congress indicates that FAA's response has not been adequate.
    Current law, 49 U.S.C. 47107(b), requires any report 
receiving an AIP grant to promise, as a condition to that 
grant, that all revenues generated by the airport will be spent 
on the capital or operating costs of that airport. This 
prohibition against revenue diversion is designed to prevent 
airports from using their monopoly power to gouge airlines and 
other airport users in order to build huge surpluses that could 
then be diverted to other local programs that have nothing to 
do with aviation. Given that most airport users do not vote in 
the area of the airport but are merely visiting or making 
connections, it was feared that local officials would be 
tempted to raise airport fees rather than local taxes of those 
fees could be used for non-airport projects. The revenues 
diversion prohibition ensures that any money raised at the 
airport will be spent on the airport. In light of the important 
safety, security, capacity, and noise mitigation needs at most 
airports, it is vital that the money is spent in this way.
    The revenue diversion prohibition was also imposed in 
recognition of the fact that money is fungible. Congress did 
not want an airport to receive an AIP grant for a specific 
project and then divert a like amount of money off the airport 
for a non-airport purpose. The revenue diversion prohibition 
ensures that all airport and AIP money is used for airport 
purposes.
    However, it is not merely the integrity of AIP grants that 
causes the Committee's concern about revenue diversion. 
Ultimately, it is the passenger who must pay when airport 
revenue is diverted. When an airline's rates and charges are 
increased to make up for the revenue lost by the diversion, the 
higher cost is ultimately passed on to the passenger. 
Therefore, revenue diversion burdens interstate commerce even 
if the airport is no longer receiving grants. In recognition of 
this fact, the bill applies the exact same revenue diversion 
prohibition to airports that have a FAA certificate as now 
applied to airports that receive AIP grants. For the most part, 
these will be the same airports. However, broadening the 
revenue diversion prohibition to cover all certificated 
airports will make clear that an airport cannot escape this 
prohibition by refusing to accept AIP grants. Removing this 
perverse incentive to refuse AIP grants will also have the 
beneficial effect of once again encouraging all airports to use 
available Federal money to increase safety, capacity, and 
reduce noise.
    In previous reauthorization legislation, provisions have 
been included to enforce the revenue diversion prohibition. 
Nevertheless, there still appear to be some who are seeking 
avenues around the law. Partly, this may be due to the fact 
that, at worst, a community caught diverting revenue will have 
to give it back. To increase the stakes, and once again 
demonstrate the seriousness with which Congress views this 
issue, the reported bill would authorize the imposition of 
treble damages on a party found to be in violation of the 
revenue diversion prohibition. This would require a repayment 
of three times the amount found to be diverted. In the 
Committee's view, revenue diversion is harmful whether it takes 
the form of a direct payment from the airport to a non-airport 
entity or an indirect payment such as the inclusion of AIP 
grant or PFC revenue in the gross revenue of the airport for 
the purposes of calculating that airport's rent to another 
political entity. This view is consistent with the FAA's 
statement that ``airport revenue does not include Passenger 
Facility Charges received by a sponsor'', 61 FR 7137, February 
26, 1996.
    On the other hand, the Committee would urge the FAA to take 
a flexible approach to aeronautical higher education programs 
located at airports. It is the Committee's understanding that 
some airports have leased or transferred property to these non-
profit organizations at favorable rates such as one dollar per 
year. Given that the development of the aviation ``human 
infrastructure'' is just as important as the development of the 
physical infrastructure, the Committee urges the FAA not to 
stand in the way of these favorable leases or transfers to non-
profit, accredited collegiate aviation programs. Facilitating 
these programs will help built a base of support for airport 
operations and give students, who will be the future users of 
the system, easy access to aviation facilities.
    Similarly, airports should be able to lease airport space 
at below-market rates to not-for-profit air and space museums 
located at airports. This type of rental arrangement should not 
be considered revenue diversion because of the contribution 
these museums make to the understanding and support of 
aviation.

                                 Safety

    Although this legislation is primarily directed toward 
improvements in airport and airway infrastructure, the bill 
also includes some changes to enhance aviation safety.
    Supplemental Type Certificates. Under current practice, FAA 
issues a supplemental type certificate (STC) to those who 
develop a modification to an aircraft. The developers must 
comply with specific FAA requirements to obtain the STC. The 
STC and its accompanying technical data may then be marketed by 
the STC holder. Unfortunately, there are apparently cases where 
the STC package is duplicated or stolen by copying the data 
without permission and then using it to make the modification 
to an aircraft. This compromises safety because unauthorized 
users of STC data have no continuing connection to the STC 
holder and thus no obligation to provide safety updates to the 
owners of aircraft modified in accordance with the STC. It also 
undermines safety by destroying the economic incentive to 
develop modifications to aircraft that might enhance the safety 
of that equipment.
    The reported bill would address this problem by requiring 
the STC holder to provide some written evidence if the holder 
permits another person to use the STC data to modify an 
aircraft. A repair station would not make the change to the 
aircraft unless the person requesting the change is the STC 
holder or someone who has the written permission of the holder 
to use the STC. This should enhance safety while placing a 
minimum burden on the FAA. This amendment would not affect 
someone going through the process of obtaining an STC for a 
modification of an aircraft from the FAA.
    Small Airport Certification. The reported bill provides FAA 
with the authority to extend airport certification to airports 
served by scheduled commercial aircraft with between 10 and 30 
passenger seats. This is designed to achieve a comparable level 
of safety at all commercial service airports. However, the 
Committee recognizes that there are differing views as to 
whether airport certification issues have contributed to the 
cause of any accidents at the small airports affected. The 
Committee is opposed to the implementation of any unreasonably 
expensive Federal regulations at these smaller airports which 
could result in a loss of air service to these communities, 
resulting in a shift of the traveling public to less safe modes 
of transportation.
    Accordingly, in implementing this provision, the Committee 
would expect the aviation industry and the FAA, through the 
Aviation Rulemaking Advisory Committee (ARAC), to develop a 
certification program that addresses the following safety 
areas--(1) written plans for handling certain emergencies and 
incidents, such as a mutual aid agreement with neighboring fire 
departments; (2) snow removal plans where appropriate, and (3) 
self-inspection programs, similar to the one at 14 CFR 139.327, 
that cover wind cones, airfield markings, lighting, airfield 
direction signage, safety areas, pavement maintenance, and 
runway protection zones. The Committee expects FAA to give 
careful consideration to the ARAC recommendations. FAA should 
not promulgate regulations at affected airports until ARAC has 
provided FAA with its final recommendations. However, FAA could 
exercise the authority under this provision if it determined 
that the ARAC recommendations are not being developed in a 
timely fashion.
    In implementing the ARAC's recommendations, FAA should 
consider utilizing the existing 5010 inspection program to 
administer these requirements. Under this program, State 
aviation officials now perform inspections at small airports. 
The FAA should also work with industry organizations to develop 
appropriate training and awareness programs for affected 
airports.
    Security screeners. The reported bill includes authority 
for the FAA to require criminal history record checks for 
people hired to screen passengers and property at airports. 
This provision is designed to weed out those who might 
themselves be security risks and undermine the goals of the 
airlines' and airports' security program. It was patterned 
after existing FAA rules governing access investigations at 14 
CFR 107.31(c)(4)(i)-(iii). However, the Committee is concerned 
about potential costs in this area and would urge the FAA to 
carefully study this issue before proceeding with rulemaking.
    Voluntarily provided safety and security information. The 
aviation industry is a remarkably safe one. The 1995 fatal 
accident rate per million miles flown by large scheduled 
airlines declined to 0.0004 from 0.0008 the year before. From 
the standpoint of aircraft departures, the fatal accident rate 
was 0.024 per 100,000 departures in 1995. Regional airlines 
showed similar improvements in their accident rate.
    Although the low accident rate is welcome, the recent 
disasters involving ValuJet and TWA, and other accidents and 
incidents, tragically demonstrate that further improvements are 
still needed. Toward this end, the Committee is aware that the 
FAA, NTSB, and the aviation community are beginning to develop 
data sharing programs. These programs could help improve air 
safety by helping safety officials identify trends before they 
cause accidents. One such program is the flight operations 
quality assurance (FOQA) program under which in-flight data is 
collected during normal flights. Analysis of this data could 
help spot problems that now are uncovered only after an 
accident.
    The Committee wishes to encourage and promote these sorts 
of innovative safety programs. One possible impediment to full 
implementation, however, is the concern of some in the aviation 
community about the confidentiality of the data being shared. 
Much of the information could be incomplete, unreliable, and 
quite sensitive. There will be a reluctance to share such 
information if it will be publicly released because it could 
easily be misinterpreted, misunderstood, or misapplied.
    Arguably, this information would not have to be released 
under the Freedom of Information Act (FOIA) because it would be 
eligible for exemption under 5 U.S.C. 552(b0(4). This provision 
exempts from disclosure under FOIA trade secrets and commercial 
or financial information that is privileged and confidential. 
However, FAA's decision to invoke this exemption and withhold 
the information is discretionary with the agency. Therefore, 
there is not assurance under current law that sensitive 
information will not be released.
    The reported bill provides the necessary assurances by 
prohibiting the FAA from disclosing voluntarily provided safety 
information. This should alleviate the aviation community's 
concerns and allow data sharing safety programs to move 
forward. It will not reduce the information available to the 
public since the public does not receive this information now. 
However, public safety will be enhanced by the increase in the 
FAA's understanding of on-going trends in operations and 
technologies. The data and information that will be available 
to the FAA as a result of this provision in the reported bill 
should be very useful in the formulation of the FAA's safety 
policy and regulations.
    Automated Surface Observing System (ASOS). Recent 
legislative changes have significantly liberalized the FAA's 
procurement procedures. The Committee supports the agency's 
efforts to become more flexible in its purchasing decisions and 
acquire generally less-expensive commercial off-the-shelf 
(COTS) equipment whenever it is available and suitable. 
However, one program that continues to be a source of concern 
is the Automated Surface Observing System (ASOS). There have 
been substantial delays in the ASOS program and widespread 
dissatisfaction among system users. Because of these on-going 
problems and the need to ensure greater efficiencies in the 
future, the Committee requests the FAA to submit to it a 
detailed report within 6 months of the date of enactment that 
discusses the status of the ASOS, the agency's views on its 
options for extending, modifying, or terminating this 
procurement, and the availability of COTS equipment to replace 
or supplement future ASOS purchases.

                          Miscellaneous Issues

    Disadvantaged Business Enterprises. The Committee is aware 
that recent court decisions have established new standards for 
review of the constitutionality of programs such as the 
disadvantaged business enterprise (DBE) provisions in 49 U.S.C. 
47107(e) and 47113 and that the courts are now determining 
whether the DBE programs comply with those standards. The 
reported bill makes no changes in these provisions preferring 
to let the courts resolve these issues. However, the Committee 
will continue to monitor the FAA's administration of this 
program and gauge the impact of court decisions on these 
provisions.
    The Committee understands that DOT and FAA are considering 
new regulations to implement the DBE provisions that were 
revised in 1992 (P.L. 102-581, 106 Stat. 4882). If the agency 
determines that the DBE program meets constitutional standards, 
it should issue these regulations as soon as possible. In doing 
so, we would urge the agency to be mindful of the delicate 
balance the law strikes in the area of car rental company 
participation in the DBE program. While direct ownership 
arrangements, including joint ventures and franchises, are 
usually the preferred option under section 47107(e)(3), section 
47107(e)(4) ensures that participation in the DBE program does 
not force car rental companies to change their corporate 
structure. Therefore this section allows car rental companies 
to participate in the DBE program by purchasing cars and other 
goods and services from DBE vendors. The Committee urges the 
FAA to implement this provision carefully so that it does not 
establish standards for business size or vendor purchases that 
could make it impractical for car rental companies to 
participate in this way.
    Existing Authority for Use of PFC. The Committee recognizes 
that there may be some ambiguity about the type of projects for 
which the Passenger Facility Charge (PFC) funds may be used. 
This appears to be the case with regard to a project being 
considered by the Port Authority of New York and New Jersey. 
The Port Authority wants to provide dedicated rail access from 
Manhattan to John F. Kennedy International and LaGuardia 
Airports. Rail access to these airports is extremely important 
to the New York metropolitan area. The island of Manhattan is 
the destination of many of the airline passengers traveling to 
these airports, which are located on Long Island, across the 
East River from Manhattan. Although the distance from the 
airports to Manhattan is not great, the congestion caused, in 
part, by the fact that toll bridges and tunnels are the only 
link between Manhattan and Long Island, make travel between the 
airports and Manhattan very expensive and time consuming.
    A dedicated rail line would relieve congestion, as well as 
provide quick and affordable airport access to and from New 
York City. Because it would be used solely by airport users, 
the Port Authority plans to use PFC revenue to help fund the 
project. The Committee understands that the Port Authority may 
be planning to build the rail line in a circuitous route 
because the right of way for that route is owned by the Port 
Authority, and the Port Authority has determined that owning 
the right of way is necessary for PFC funding to be approved 
for the project. The Port Authority proposed route would be 
more costly to build and, ultimately, take passengers more time 
traveling between the city and the airports.
    An alternate and more direct route would involve using a 
right of way owned by the Long Island Railroad (LIRR). This 
route would be less expensive to build and provide access to 
the airport in far less time than the Port Authority's proposed 
route. In addition, the Manhattan termination point would be 
Penn Station, which is both centrally located, and provides 
passenger access to other transportation systems. Perhaps 
because of conflicting information available as to whether a 
route using a right of way owned by the LIRR could be built 
with PFC funds, this alternative is not presently the choice of 
the Port Authority, despite its more modest cost and more 
direct routing.
     The Committee wants any decision made by the Port 
Authority about its dedicated rail project to be based on 
complete information. If the FAA approves PFC funds for 
dedicated rail projects to airports, the decision should not 
hinge on whether or not the right cars using the line that 
provides airport access must be used solely by individuals 
going to or from the airport; no local traffic may be carried 
in the cars. It is important to note that, from the Committee's 
perspective, the actual rail line could be used by other trains 
that provide local transportation, as long as the cars used for 
airport access are used only for airport access, and the 
facility built with PFC funds are dedicated to airport access. 
As long as the airport sponsor has obtained the authority to 
use the right of way for an extended period of time, 
historically defined by the FAA as the length of the grant 
assurances, or 20 years, and the PFC funded facility is 
dedicated to airport access, the airport sponsor need not own 
the right of way.

                       Section by Section Summary

Section 1.--Short Title; Table of contents

    This section provides that the Act may be cited as the 
``Federal Aviation Authorization Act of 1996.''

Section 2.--Amendments to Title 49, United States Code

    This section states that the amendments in the first four 
tiles of this Act are to Title 49 of the U.S. Code.

Section 3.--Applicability

    Provides that the first four titles of this Act take effect 
at the beginning of the new fiscal year.

               TITLE I.--REAUTHORIZATION OF FAA PROGRAMS

Section 101. Airport Improvement program

    The Airport Improvement Program (AIP) is reauthorized for 3 
years starting at $2.28 billion in the first year, $2.347 
billion in fiscal year 1998, and $2.412 billion in fiscal year 
1999.

Section 102. Airway facilities improvement program

    The Facilities and Equipment (F&E;) program is reauthorized 
for 3 years starting at $2.068 billion in the first year, 
$2.129 billion in fiscal year 1998, and $2.191 billion in 
fiscal year 1999.

Section 103. Operations of FAA

    FAA operations are reauthorized for 3 years ($5.158 billion 
in the first year, $5.344 billion in fiscal year 1998, and 
$5.538 billion in fiscal year 1999) maintaining the same 
formula as current law for determining the amount that may be 
derived from the Trust Fund for this purpose.

                TITLE II.--AIRPORT DEVELOPMENT FINANCING

Section 201. Apportionments.

    The formula is revised so that an airport with more than a 
million passengers per year would get 50 cents for each 
passenger over a million rather than 65 cents. In addition, the 
cargo entitlement is lowered from 3.5% to 2.5% and grants from 
this entitlement are authorized for airports that do not meet 
the landed weight minimum but that FAA finds will be served 
primarily by all-cargo aircraft. If FAA awards grants from the 
cargo entitlement to these additional airports, then the 
airports that meet the landed weight threshold must take a 
proportional cut in their share of this entitlement. Paragraph 
(a)(3) eliminates the 44% and 49.5% caps on entitlements.
    Subsection (b) raises the State entitlement for general 
aviation airports from 12% to 18.5%. Paragraph (b)(2) changes 
the entitlement for the territories from 1% of 12% to 0.66% of 
18.5%. Paragraph (b)(3) states that the remainder of the 18.5% 
State entitlement will continue to be distributed half in 
proportion to the land area of the State and half in proportion 
to the population of the State. Paragraph (b)(4) adds reliever 
airports and small commercial service airports (those with 
between 2,500 and 10,000 passengers) to the group of general 
aviation airports that qualify for money under the State 
entitlement.

Section 202. Discretionary fund

    The discretionary fund is changed by establishing new 
paragraphs (g) and (h) in section 47115 of current law.
    Subsection (g) eliminates the requirement that the 
discretionary fund be at least $325 million and replaces it 
with a new minimum discretionary fund. This new minimum 
discretionary fund is $50 million plus whatever is needed to 
fund outstanding letters of intent that were issued before 
January 1, 1996. This minimum discretionary fund does not 
include carryover entitlements. If the discretionary fund drops 
below this minimum level, the passenger, cargo, general 
aviation, and Alaska entitlements are reduced proportionately 
to provide enough money to meet the minimum.
    Subsection (h) states that the amount in the discretionary 
fund that is left over after the outstanding letters of intent 
are funded ($50 million or more) shall be distributed as 
follows:
          (1) At least 15% for system planning or for grants to 
        general aviation airports; and
          (2) At least 30% to non-hub and small hub airports.

Section 203. Use of apportioned amounts

    This section makes several changes in the use of AIP funds.
    Subsection (a) permits a non-hub primary airport to carry-
over its entitlements for 3 years rather than the current 2 
years.
    Subsection (b) makes changes in the set-asides. Paragraph 
(1) states that the set-asides will be a percentage of the 
discretionary portion of AIF rather than a percentage of the 
total AIP. Paragraph (2) eliminates the special set-asides for 
reliever airports, small commercial service airports, and 
planning. Paragraph (3) retains the set-asides for noise and 
military airports. Paragraph (4) states that the noise set-
aside will be 31% of the discretionary fund. Paragraph (5) 
states that the FAA can count the amounts that airports spend 
on noise from their own entitlements in determining whether the 
31% noise set-aside has been met. Paragraph (6) states that the 
military airport set-aside will be 4% of the discretionary 
fund. Paragraph (7) permits $30,000 per airport to be spent 
from the military set-aside to help cover the operational and 
maintenance expenses of general aviation airports that have 
been adversely affected by the closure or realignment of a 
military base and that would otherwise have to close without 
the grant.

Section 204. Designating current and former military airports

    The military airport program (MAP) is changed by lowering 
the number of airports that can be included in this program 
from 15 to 10 and changing the criteria the FAA must use in 
selecting airports for participation in the program.

Section 205. Select panel on airport and agency financing

    This section creates a panel to study the financing of 
airports and the FAA. The panel should evaluate and recommend 
innovative ways to fund airport infrastructure and the budget 
of the FAA. Subsection (c) states that the DOT Secretary shall 
appoint 7 members of the panel (3 with expertise in aviation 
and 3 with expertise in financing) and that 8 members shall be 
appointed by Congress (1 each by the Chairman and ranking 
member of the House and Senate authorizing and appropriating 
committees). Subsection (d) states that members of the panel 
appointed by the Secretary cannot be employed in the aviation 
industry. This is designed to ensure that there is a balance 
with Congressionally-appointed members of the panel potentially 
representing key segments of the aviation industry while the 
Secretary's appointments are independent of any special 
aviation interest. Subsection (e) states that the DOT Secretary 
appoints the chairman of the panel. Subsection (f) lists the 
items that the panel should study. These include airport and 
agency needs and innovative ways to meet those needs. 
Subsection (g) requires an independent audit of the agency's 
needs. Subsection (h) permits panel members to be paid travel 
and per diem. Subsection (i) requires FAA to make resources 
available to the panel. Subsection (j) requires the panel to 
report within 1 year after the last member is appointed. 
Subsection (k) requires GAO to do an independent assessment of 
airport needs within 6 months of the date of enactment. This 
assessment should look at the needs of each size and class of 
airport and the ability of each size and class to meet those 
needs.

         title iii.--airport improvement program modifications

Section 301. Intermodal planning

    This section encourages coordination between aviation 
planning and other transportation planning in the metropolitan 
area and encourages Metropolitan Planning Organizations (MPOs) 
to include airport operators as members. Subsection (b) 
requires the sponsor of a new airport to give the MPO a chance 
to review plans for the new airport and include in the AIP 
grant application its response to any comments made by the MPO.

Section 302. Compliance with Federal mandates

    This section broadens the ability of AIP and PFC funds to 
be used to pay for Federal mandates.

Section 303. Runway maintenance program

    This section permits AIP grants for up to 10 runway 
maintenance projects per year at general aviation airports. The 
Committee believes that by funding runway maintenance projects, 
more expensive projects to rehabilitate or reconstruct runways 
could be avoided.

Section 304. Access to airports by intercity buses

    This section adds a new grant assurance directing airports 
to try to provide access to intercity buses. This will further 
the goal of making airports part of an intermodal 
transportation system. It will not require airports to build 
new facilities just for inter-city buses and an airport could 
still impose conditions and fees on inter-city buses just like 
it imposes on others using the airport as long as those 
conditions and fees did not effectively undermine this grant 
assurance.

Section 305. Cost reimbursement for projects commenced prior to grant 
        award

    This section allows an AIP grants to reimburse an airport 
for a project already underway. This reimbursement must be from 
the airport's entitlement funds and the grant can be made only 
if;
          (i) the project is begun after September 30, 1996;
          (ii) a grant agreement is executed for the project; 
        and
          (iii) the project is in accordance with the airport's 
        approved layout plan and complies with all laws, rules, 
        and assurances that usually apply to AIP grants.
    Subsection (b) states that an airport will not receive any 
priority for discretionary funds if its entitlements turn out 
to be insufficient to cover reimbursement for the project. 
While the formula in this bill attempts to ensure that all 
airports receive their full entitlement, lower funding levels 
could result in a lower entitlement than expected. If airports 
choose to take advantage of this cost reimbursement provision, 
they should do so with the knowledge that any shortfall in 
their reimbursement due to lower entitlements will have to be 
made up from internally-generated funds or other sources and 
not from AIP discretionary funds.
    This reimbursement provision is intended to be in addition 
to, and not in lieu of, the existing reimbursement provision at 
49 U.S.C. 47119.

Section 306. Issuance of letters of intent

    This section requires the Secretary to issue rules 
requiring a cost-benefit analysis for new letters of intent 
(LOI) for projects at medium and large hub airports. No letters 
of intent can be issued for projects not yet under construction 
until these rules take effect even if the airport has already 
applied for the LOI. A request for a letter of intent must 
include specific details of the proposed financing plan for the 
project. The Secretary must consider the effect of the project 
on overall national air transportation policy when deciding 
whether to issue a letter of intent for a project.

Section 307. Selection of projects for grants from discretionary fund

    This section adds three additional criteria to be 
considered in the award of discretionary grants. They are the 
priority that a State gives to the project, the projected 
growth in passengers at the airport, and whether the number of 
passengers has increased by more than 20% over the previous 12-
month period. In directing FAA to give weight to the priority 
that the State gives to the project, the Committee does not 
intend to give States any additional statutory rights over the 
AIP program or the award of AIP grants. Rather this provision 
is merely intended to add another factor for the FAA to 
consider in awarding discretionary grants.

Section 308. Small airport fund

    This section states that in making grants to non-hub 
airports from the small airport fund, the Secretary shall give 
priority to multi-year projects for construction of new runways 
that are cost beneficial and would increase capacity in a 
region of the U.S.

Section 309. State block grant program

    This section changes the state block grant program by 
increasing the number of participating States from 7 to 10, 
directing FAA to permit States to use their own priority system 
when not inconsistent with the national priority system, and 
making the program permanent.

Section 310. Private ownership of airports

    Section 310 creates a pilot program permitting, subject to 
DOT approval, the sale or long-term lease of 6 airports. The 
sponsor and the potential purchaser must file an application 
with DOT. DOT may grant the application by issuing the three 
exemptions. The first exemption would waive the revenue 
diversion prohibitions to permit the public owner to make money 
from the sale but only in an amount agreed to by 60% of the 
airlines serving that airport with 60% of the landed weight. 
The second exemption would waive the requirements in law and 
FAA policy guidance that AIP grants be repaid and land received 
from the Federal government be returned. The third exemption 
would permit the new owner to receive compensation from 
operating the airport.
    Subsection (c) of new section 47133 lists the conditions 
that must be met by an airport sale or lease agreement. These 
conditions are provisions to ensure that:
          (1) the airport will be available to the public on 
        reasonable terms and without discrimination (While this 
        is already a grant assurance, the Committee thought it 
        of sufficient importance in this context to reemphasize 
        it by including it in this subsection);
          (2) the airport will continue in operation without 
        interruption in the event the new owner goes bankrupt 
        (This condition could be met by a performance bond, 
        reverter clause, or some other provision acceptable to 
        the Secretary);
          (3) the new owner will maintain and improve the 
        airport and include a plan for doing so;
          (4) airline fees will not increase faster than 
        inflation unless more than 60% of the airlines with 60% 
        of the landed weight agree to higher rates;
          (5) safety at the airport will be maintained;
          (6) noise from the airport will be mitigated;
          (7) environmental impacts will be mitigated; and
          (8) collective bargaining agreements of airport 
        employees will not be abrogated.
    The provisions on safety, noise, and the environment are 
not intended to impose a higher standard on private airports 
than now exist for public ones. They are merely designed to 
provide assurances that the current standards in these areas 
will be maintained.
    At least one of the privatized airports is to be a general 
aviation airport. The private airports under this section are 
authorized to charge a PFC, receive AIP entitlement grants, and 
charge users reasonable rates, fees, and charges like other 
airports. The new owner is required to continue to use the 
facility as an airport. The exemptions issued under this 
section may be revoked if, after notice and hearing, DOT finds 
that the purchaser or lessee has knowingly violated any of the 
commitments that it made in the purchase or lease agreement. 
Obviously, we would expect the Secretary not to take such 
drastic action lightly.
    Subsection (h) of new section 47133 clarifies that the 
power of airlines over use of revenue and fees in this section 
applies only to the airports purchased or leased under this 
section and not to other airports.
    Subsection (b) of this section makes private airports 
subject to the same prohibition on head taxes as public 
airports.
    Subsection (c) requires DOT to consider whether the private 
airport has complied with the requirement that airline fees not 
increase faster than the rate of inflation in deciding a rates 
and charges complaint against that airport.

Section 311. Use of noise set-aside funds by non-airport sponsors

    This section permits noise abatement grants to be made to a 
State or local government that is not the airport's owner if 
that government has land use and zoning control in the area and 
if the airport agrees that the State or local government's 
noise abatement plan or project is consistent with airport 
operations and plans.

                  title iv.--miscellaneous provisions

Section 401. Purchase of housing units

    This section permits FAA to purchase housing outside the 48 
States if the unit does not cost more than $200,000 and the FAA 
files a report with Congress 30 days before the closing 
certifying that the price of the units does not exceed the 
median price in the area and that buying the housing is the 
most cost beneficial way to provide housing for its employees.

Section 402. Technical correction related to State taxation

    This section corrects a mistake that was made when section 
1113 of the Federal Aviation Act of 1958 (49 U.S.C. 1513) was 
recodified as section 40116 of Title 49. As recodified, the 
section seems to permit a State or political subdivision to 
impose any type of tax, fee, or head charge as long as the 
airline's aircraft lands or takes off in the State or political 
subdivision. In fact, this is broader than old section 1113 
ever allowed. That section prohibited States and political 
subdivisions from imposing a tax, fee, or head charge, except 
the PFC in section 40117, even if where the aircraft lands or 
takes off there. This technical correction is designed to 
conform new section 40116 to old section 1113 in this respect 
and return the issue of State taxation to the status quo as it 
existed before the recodification.

Section 403. Use of passenger facility fees for debt financing project

    This section permits revenue from an airport's passenger 
facility charge (PFC) to be spent on debt financing on terminal 
development projects at non-hub airports where construction 
began between November 5, 1988 and November 5, 1990 and the 
airport certifies that no safety, security, or capacity project 
will be deferred by spending PFC money in this way.

Section 404. Protection of voluntarily submitted information

    This section permits FAA to withhold voluntarily provided 
safety and security information if disclosure would discourage 
people from providing it, the information helps FAA improve 
safety and security, and withholding the information would not 
be inconsistent with the FAA's safety and security 
responsibilities. Examples of information the withholding of 
which would be inconsistent with FAA's safety and security 
responsibilities (and thus still could be disclosed) are 
information required in an enforcement action to prosecute 
safety or security violations and information about a threat to 
civil aviation that should be made public under 49 U.S.C. 
44905.
    The FAA should issue rules to establish the process by 
which protection from disclosure will be afforded to 
voluntarily submitted information.

Section 405. Supplemental type certificates

    This section states that FAA may issue supplemental type 
certificates (STCs) for modifications to aircraft parts. It 
requires anyone installing the modification to have the 
permission of the holder of the STC to use it.

Section 406. Restriction on use of revenues

    This section imposes the existing prohibition against 
revenue diversion on all airports certificated by FAA even if 
they are not receiving AIP grants. The FAA can waive this 
prohibition if the airport has not received any grants in the 
last 10 years. Subsection (b) imposes treble damages on anyone 
caught illegally diverting airport revenue.
    This provision is not intended to change the rule for the 
current group of small private airports or to prevent the 
owners of those airports from making money from their property. 
Nor is this provision intended to change the existing 
grandfather rights of any airport.

Section 407. Certification of small airports

    This section authorizes FAA to certificate airports served 
by commuter aircraft with between 10 and 30 seats. In 
establishing the standards with which these small airports must 
comply, the FAA should adopt the least burdensome alternative 
that will provide a comparable level of safety with the larger 
airports. Any rule imposing standards on these small airports 
cannot go into effect until 120 days after the rule, and a 
report on the impact of the rule on air service to the airports 
involved, is submitted to Congress.
    This section is not intended to restrict the FAA's 
authority to issue limited certificates to airports.

Section 408. Discretionary authority for criminal history record checks

    This section permits FAA to require airlines to do 
background checks before hiring someone to screen passengers, 
their baggage, or cargo. This could include criminal history 
record checks only where the background investigation revealed 
a gap in employment of a year or more that is not 
satisfactorily explained. This would include cases where the 
individual is unable to support statements made or where there 
are significant inconsistencies in the information provided.

Section 409. Imposition of fees

    This section authorizes FAA to impose fees, up to $30 
million per year, on aircraft that overfly the U.S. but do not 
land here. The aggregate annual amount of these fees should not 
exceed the aggregate annual direct costs incurred by the FAA in 
providing air traffic services to such flights. Further, the 
user fee imposed on any flight should be based on the FAA's 
actual cost of service and not on any non-cost based 
determination of the ``value'' of the service provided. For 
example, assuming similar cost of serving different carrier and 
aircraft types, the FAA user fees should not vary based on 
factors such as aircraft seating capacity or revenues derived 
from passenger fares. See also page 38 of H. Rept. 104-631.

Section 410. Authority to close airport located near closed or 
        realigned military base

    This section permits general aviation airports located near 
closed or realigned military bases to be closed.

Section 411. Construction of runways

    This section counters the provision in the Appropriations 
Act that prevents funding for a sixth runway at Denver. It is 
not intended by this provision that Denver be given any special 
priority for AIP grants, only that it be given the same 
opportunity as any other airport to receive such grants.

Section 412. Gadsden Air Depot, Alabama

    This section waives deed restrictions previously imposed on 
Gadsden Air Depot in Alabama.

Section 413. Regulations affecting intrastate aviation in Alaska

    This section requires FAA to consider Alaska's unique 
reliance on aviation and to make the appropriate regulatory 
distinctions when taking actions that could affect Alaska.

Section 414. Westchester County Airport, New York

    This section permits fees collected by Westchester County 
Airport to be paid into the county treasury as long as 
expenditures from the County treasury for the airport at least 
equal the amount of money it collects from the airport.

Section 415. Bedford Airport, Pennsylvania

    This section states that any instrument landing system in 
Pennsylvania that is decommissioned should, if feasible, be 
transferred and installed at the Bedford, Pennsylvania airport.

Section 416. Location of Doppler radar stations, New York

    This section prohibits the construction of a Doppler radar 
at the Coast Guard station in Brooklyn, New York. It also 
requires a study and report within one year of the feasibility 
of placing the radar on off-shore platforms. The report must 
include proposed locations that are as far as possible from 
populated areas while providing appropriate safety measures. 
The FAA may not begin construction of a Doppler radar for 
Kennedy or LaGuardia Airports until this study is completed.

Section 417. Worcester Municipal Airport, Massachusetts

    This section directs FAA to provide radar coverage for the 
Worcester Airport from a radar in Rhode Island if that is 
appropriate.

Section 418. Aircraft Noise Ombudsman

    This section requires FAA to hire a noise ombudsman to 
serve as a liaison with the public on issues regarding aircraft 
noise and to be consulted when the FAA changes aircraft routes.

               title v.--metropolitan washington airports

    This title is the same as H.R. 1036 that was reported to 
the House on May 29, 1996. See House Report 104-596.

    title vi.--extension of airport and airway trust fund taxes and 
                         expenditure authority

    This Title recommends the following to the Ways and Means 
Committee:
          Extension of the 17.5 cents per gallon general 
        aviation jet fuel tax for 3 years beginning 30 days 
        after enactment;
          Extension of the 15 cent per gallon general aviation 
        gasoline tax for 3 years beginning 30 days after 
        enactment;
          Extension of the 10% passenger ticket tax and the 
        6.25% cargo waybill tax for 3 years beginning 30 days 
        after the date of enactment;
          Extension of the $6 international departure tax for 3 
        years beginning 30 days after the date of enactment
          Permit money to be paid out of the Trust Fund for the 
        purposes authorized by this Act;
          Restore the airlines' exemption from the 4.3 cents 
        per gallon fuel tax for 3 years;
          Require a reduction in the 10% passenger ticket tax 
        when DOT determines that there is a funding shortfall 
        in a fiscal year. There would be a funding shortfall 
        under this provision when the amount appropriated for 
        the Airport Improvement Program (AIP) is less than the 
        amount authorized. Previous year authorizations and the 
        result of a sequester or rescission would not be 
        included in the calculation of whether there is a 
        funding shortfall. This provision would require that 
        the tax rate be reduced so that the reduction in tax 
        revenue equals the funding shortfall.

                    Hearings and Legislative History

    The Subcommittee on Aviation held the following hearings in 
preparation for the reauthorization of the Airport Improvement 
and other FAA programs:
          February 29, 1996--Airport privatization;
          March 7, 1996--Airport revenue diversion;
          March 13, 1996--Airport needs;
          March 14, 1996--State block grant program;
          March 18, 1996--Proposed third runway at Sea-Tac 
        International Airport;
          March 20, 1996--FAA views and miscellaneous issues.
    H.R. 3539 was introduced on May 29, 1996. On May 30, 1996, 
the Subcommittee reported the bill, with amendments, to the 
full Committee on Transportation and Infrastructure. On June 6, 
1996, the Committee on Transportation and Infrastructure 
ordered the bill reported, with amendments, by voice vote.

                        Committee Consideration

    Clause 2(l)(2)(B) of rule XI requires each Committee report 
to include the total number of votes cast for and against on 
each rollcall vote on a motion to report and on any amendment 
offered to the measure or matter, and the names of those 
members voting for and against.

                       DeFAZIO AMENDMENT (20-32)

     This amendment would have amended the airport 
privatization provision (section 310) to require the repayment 
of Federal AIP grants.
        Members Voting Aye            Members Voting Nay
Barcia                              Bachus
Brown                               Baker
Clyburn                             Bateman
Collins                             Blute
Costello                            Borski
Cramer                              Clinger
Cummings                            Coble
Danner                              Duncan
Defazio                             Ehlers
Filner                              Emerson
Ms. Johnson                         Franks
Lipinski                            Gilchrest
Mascara                             Horn
Menendez                            Hutchinson
Nadler                              Kelly
Poshard                             Kim
Sawyer                              LaHood
Taylor                              Latham
Traficant                           LaTourette
Wise                                McCarthy
                                    Mica
                                    Molinari
                                    Oberstar
                                    Petri
                                    Quinn
                                    Rahall
                                    Seastrand
                                    Tate
                                    Wamp
                                    Weller
                                    Young
                                    Shuster

            Committee Oversight Findings and Recommendations

    With respect to the requirements of clause 2(l)(3)(A) of 
rule XI of the Rules of the House of Representatives, the 
Committee oversight findings and recommendations are reflected 
in this report.

                     Inflationary Impact Statement

    Pursuant to clause 2(l)(4) of rule XI of the Rules of the 
House of Representatives, the Committee estimates that the 
enactment of H.R. 3539 will have no significant inflationary 
impact on prices and costs in the operation of the national 
economy.

                        Cost of the Legislation

    Clause 7 of rule XIII of the Rules of the House of 
Representatives does not apply where a cost estimate and 
comparison prepared by the Director of the Congressional Budget 
Office under section 403 of the Congressional Budget Act of 
1974 has been timely submitted prior to the filing of the 
report and is included in the report. Such a cost estimate is 
included in this report.

                     Compliance With House Rule XI

    1. With respect to the requirement of clause 2(l)(3)(B) of 
rule XI of the Rules of the House of Representatives, and 
section 308(a) of the Congressional Budget Act of 1974, the 
Committee references the report of the Congressional Budget 
Office included below.
    2. With respect to the requirement of clause 2(l)(3)(D) of 
rule XI of the Rules of the House of Representatives, the 
Committee has received no report of oversight findings and 
recommendations from the Committee on Government Reform and 
Oversight on the subject of H.R. 3539.
    3. With respect to the requirement of clause 2(l)(3)(C) of 
rule XI of the Rules of the House of Representatives and 
section 403 of the Congressional Budget Act of 1974, the 
Committee has received the following cost estimate for H.R. 
3539 from the Director of the Congressional Budget Office.

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, July 22, 1996.
Hon. Bud Shuster,
Chairman, Committee on Transportation and Infrastructure,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
reviewed H.R. 3539, the Federal Aviation Authorization Act of 
1996. Enclosed are estimates of the bill's impact on the 
federal budget, on state and local governments, and on the 
private sector.
    Enacting H.R. 3539 would affect direct spending and 
receipts. Therefore, pay-as-you-go procedures would apply to 
the bill.
    If you wish further details on this estimate, we will be 
pleased to provide them.
            Sincerely,
                                         June E. O'Neill, Director.
    Enclosures.

               congressional budget office cost estimate

    1. Bill number: H.R. 3539.
    2. Bill title: Federal Aviation Authorization Act of 1996.
    3. Bill status: As ordered reported by the House Committee 
on Transportation and Infrastructure on June 6, 1996.
    4. Bill purpose: H.R. 3539 would authorize appropriations 
totaling $16.0 billion for Federal Aviation Administration 
(FAA) operations and $6.4 billion for FAA facilities and 
equipment over the fiscal years 1997 through 1999. In addition, 
the bill would provide contract authority of $7.0 billion for 
the same three-year period for the airport improvement program. 
The bill also would establish user fees for air traffic control 
and other services for aircraft that do not take off or land in 
the United States. Other key provisions of the bill are 
summarized below.
    Title II would revise the formula for making grants under 
the airport improvement program and would make some changes in 
the use of the funds. This title would extend the military 
airport program but would reduce the number of airports in the 
program from 15 to 10.
    Title III would make additional changes to the airport 
improvement program, including modifications to the state block 
grant program and the runway maintenance program.
    Title IV would expand and codify an existing FAA regulatory 
prohibition on the use of airport revenues for non-aviation 
purposes, and impose civil penalties on airports for violating 
that prohibition.
    Title V would amend the Metropolitan Washington Airport Act 
of 1986 (Public Law 99-591) to terminate the Metropolitan 
Washington Airports Authority's review board and replace it 
with an advisory commission. (The Supreme Court ruled that the 
review board's role was unconstitutional.)
    Title VI would reinstate the excise taxes that support the 
Airport and Airway Trust Fund and the authority to spend 
balances from the fund through 1999. (The title is preceded by 
a statement that the Committee on Transportation and 
Infrastructure recommends the title to the Committee on Ways 
and Means.)
    In addition, this bill would require the Secretary of 
Transportation to form advisory committees and task forces to 
review FAA activities, conduct multiple studies, prescribe 
regulations, publish reports, and employ experts to conduct 
evaluations.
    5. Estimated Cost to the Federal Government: Enacting H.R. 
3539 would affect spending subject to appropriation and direct 
spending, and could affect revenues. Assuming appropriation of 
the authorized amounts, CBO estimates that enacting the bill 
would result in new discretionary spending of about $28.7 
billion over the 1997-2002 period. We estimate that this bill 
would establish fees yielding collections of $30 million in 
1997 and each year thereafter. Finally, CBO estimates that any 
impact on revenues from the assessment of civil penalties would 
be insignificant. The following table provides CBO's estimate 
of the budgetary impact of enacting H.R. 3539.

                                     [By fiscal year, in million of dollars]                                    
----------------------------------------------------------------------------------------------------------------
                                              1996      1997      1998      1999      2000      2001      2002  
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION                                       
                                                                                                                
Spending Under Current Law:                                                                                     
    Budget authority......................     6,518  ........  ........  ........  ........  ........  ........
    Estimated outlays.....................     8,420     3,715     1,733       820       400       201  ........
Proposed Changes:                                                                                               
    Authorization level...................  ........     7,226     7,473     7,729  ........  ........  ........
    Estimated outlays.....................  ........     5,466     7,854     9,013     3,688     1,692       985
Spending Under H.R. 3539:                                                                                       
    Authorization level...................     6,518     7,226     7,473     7,729  ........  ........  ........
    Estimated outlays.....................     8,420     9,181     9,587     9,833     4,088     1,893       985
                                                                                                                
                                     CHANGES IN DIRECT SPENDING AND REVENUES                                    
                                                                                                                
Airport Improvement Program:                                                                                    
    Budget authority \1\..................  ........     2,280     2,347     2,412  ........  ........  ........
Air Traffic Control Fees:                                                                                       
    Estimated budget authority............  ........       -30       -30       -30       -30       -30       -30
    Estimated outlays.....................  ........       -30       -30       -30       -30       -30       -30
Civil Penalties:                                                                                                
    Estimated revenues....................  ........       \2\       \2\       \2\       \2\       \2\       \2\
----------------------------------------------------------------------------------------------------------------
\1\ Budget authority for the airport improvement program is provided in the form of contract authority. For     
  1996, the program received $2.214 million in contract authority. Outlays from such authority are controlled by
  obligation limitations set in appropriation bills and are shown as spending subject to appropriation.         
\2\ Less than $500,000.                                                                                         

    The costs of this bill fall within budget function 400.
    In additional to the amounts shown in the above table, if 
the provisions contained in Title VI are enacted, the bill 
would raise up to $4 billion a year in tax revenues for years 
that the Airport and Airway Trust fund taxes would be in 
effect. (The revenue gain in 1997 would be lower than $4 
billion because some tickets would be purchased before the tax 
goes into effect.)
    6. Basis of estimate:

Spending subject to appropriation

    For purpose of this estimate, CBO assumes that 
appropriations would be provided before the start of each 
fiscal year. Outlay estimates are based on historical spending 
rate for the FAA.
    Contract Authority and Specified Authorizations: For the 
1997-1999 period, the bill specifies authorizations of 
appropriations totaling $22.4 billion and would provide 
contract authority of $7.0 billion for grants-in-aid to 
airport. To estimate outlays from the contract authority, we 
assumed that obligation limitations customarily established in 
appropriation acts would equal the budget authority. Because 
these outlays are subject to such limitations and to 
liquidating appropriations, they are considered discretionary 
and so are included in the above table under estimated outlays 
subject to appropriation. The contract authority is shown 
separately as direct spending.
    Other Provisions. Under the provisions of Title V, the 
Metropolitan Washington Airports Authority would have to report 
certain types of major action to the new advisory commission 
and to the Congress at least 60 days before they are to become 
effective. Such actions would include adopting an annual 
budget, authorizing the issuance of bonds, adopting or 
modifying regulations, appointing a chief executive officer, 
and awarding contracts. The advisory commission could then make 
recommendations to the Congress within 30 days of such a 
report, and the Congress could disapprove the Authority's 
actions. After September 30, 1998, the Airports Authority would 
no longer be able to take any of these types of actions or to 
spend any money except for routine operating expenses, 
previously authorized capital expenditures, and debt service on 
previously authorized obligations.
    The Metropolitan Washington Airports Authority is currently 
considered an independent body, and its financial transactions 
are not included in the federal budget. Therefore, the bill's 
changes would have no impact on the federal budget under 
current budgetary procedures. However, the extent of 
Congressional oversight of the Authority and the bill's 
provision that would terminate the Authority's ability to 
conduct major activities as of September 30, 1998, call into 
question whether the current budgetary treatment of the 
Authority should continue to apply.

Direct spending and revenues

    This bill would create a new user fee for air traffic 
control and other services provided to aircraft that do not 
take off or land in the United States.
    Budgetary Classification of Fees. The new fees could be 
classified as either offsetting receipts or governmental 
receipts. Fees that are established as charges for business-
type services and are based on the cost or value of the service 
being provided are generally classified as offsetting receipts 
(or offsetting collections when they are credited as an offset 
to appropriations). In contrast, fees that primarily reflect 
the government's sovereign power to mandate such payment and 
that do not have a direct link to the service are generally 
classified as governmental receipts.
    The classification of fees as either offsetting receipts or 
governmental receipts depends to some degree on the link 
between the fee and the cost of service that is being provided. 
Although H.R. 3539 does not state a specific fee structure, it 
states that the fees shall be established to offset the costs 
of services provided by the FAA to aircraft that do not take 
off or land in the United States. As a result, CBO assumes for 
the purpose of this estimate that the fees would be categorized 
as offsetting receipts.
    Fee Collections. The legislation sets a target amount of 
fee collections at $30 million a year, starting October 1, 
1996. According to the FAA, the $30 million level represents a 
portion of full cost recovery for overflights. CBO estimates 
that the FAA would be able to collect $30 million a year in 
fiscal year 1997 and every year thereafter.
    Revenues. Title IV could affect revenues but CBO estimates 
that any additional receipts from civil penalties associated 
with the prohibition on use of airport improvement funds for 
any non-aviation purposes would be insignificant. According to 
the FAA, penalties can be assessed under current law but there 
have not been any collections, so the agency does not believe 
that the additional language in this bill would significantly 
increase the likelihood of collecting penalties.
    CBO estimates that if the tax provisions in Title VI are 
enacted, the excise taxes supporting the Airport and Airway 
Trust Fund that lapsed on December 31, 1995, would be 
reinstated effective 30 days after enactment and would continue 
in effect through December 31, 1999. If those revenue 
provisions are enacted, they would raise roughly $4 billion in 
fiscal year 1998, the first full year that the taxes are in 
effect, and in fiscal year 1999. The revenue gain in fiscal 
year 1997 would be somewhat less because taxpayers would 
anticipate higher prices and purchase airline tickets before 
the tax went into effect. The amount of taxes that would be 
collected in fiscal year 2000 under Title VI would be about $1 
billion because the taxes would expire on December 31, 1999.
    Section 605 of Title VI would provide for a reduction in 
taxes in any year in which there is a funding shortfall. This 
funding shortfall is defined to be the amount by which the 
authorized amount of contract authority exceeds the obligation 
limitation for the airport improvement program. (In other 
words, if an appropriations act includes an obligation 
limitation that is lower than the contract authority provided 
for the year, the amount of taxes to be collected would be 
reduced.) In the year following a funding shortfall, the 
Secretary would prescribe a tax rate that would result in a 
reduction in tax revenues equal to the amount of the funding 
shortfall. Hence, some of the tax revenue may be forgone if a 
funding shortfall triggers a reduction in the tax rates. 
Because the bill would provide contract authority of $2.3 
billion to $2.4 billion a year from 1997 through 1999, the 
amount of forgone taxes could exceed one-half of the potential 
tax collections of roughly $4 billion a year if the obligation 
limitation is very low. Because there would be a one-year lag 
between a funding shortfall and a change in taxes, any 
reduction in taxes could not occur until 1998.
    7. Pay-as-you-go considerations: Section 252 of the 
Balanced Budget and Emergency Deficit Control Act of 1985 sets 
up pay-as-you-go procedures for legislation affecting direct 
spending or receipts through 1998. Because this bill would 
increase offsetting receipts, resulting in a decrease in direct 
spending, and it could increase civil penalties, pay-as-you-go 
procedures would apply to this bill.
    CBO estimates that the collections of fees on air traffic 
control and other services for aircraft that do not take off or 
land in the United States would be $30 million in 1997 and each 
year thereafter. Other pay-as-you-go effects of the bill would 
be negligible.
    The estimated pay-as-you-go impact of the bill is shown in 
the following table:

                [By fiscal year, in millions of dollars]                
------------------------------------------------------------------------
                                            1996       1997       1998  
------------------------------------------------------------------------
Change in outlays\1\...................          0        -30        -30
Change in receipts.....................          0          0          0
------------------------------------------------------------------------
\1\ For purposes of this estimate, CBO assumes that the fees to be      
  assessed under this bill would be classified as offsetting receipts.  

    In addition to the amounts shown above, governmental 
receipts could increase by up to $4 billion in 1997 and 1998 if 
the tax provisions contained in Title VI are enacted.
    8. Estimated impact on State, local, and tribal 
governments: CBO's estimate of the bill's impact on state, 
local, and tribal governments is provided as a separate 
enclosure.
    9. Estimated impact on the private sector: CBO's estimate 
of the bill's impact on the private sector is provided as a 
separate enclosure.
    10. Previous CBO estimate: On July 16, 1996, CBO prepared a 
cost estimate for the Federal Aviation Reauthorization Act of 
1996, as ordered reported by the Senate Committee on Commerce, 
Science, and Transportation on June 13, 1996. Both bills would 
reauthorize major FAA programs, but they differ in the amounts 
and years of authorization and in a number of other respects. 
The two estimates reflect those differences.
    On March 10, 1995, CBO transmitted a cost estimate for H.R. 
1036, the Metropolitan Airports Amendments Act of 1995, as 
ordered reported by the House Committee on Transportation and 
Infrastructure on March 1, 1995. H.R. 1036 is very similar to 
Title V of H.R. 3539, the section that pertains to the 
Metropolitan Washington Airports.
    11. Estimate prepared by: Clare Doherty.
    12. Estimate approved by: Robert A. Sunshine, for Paul N. 
Van de Water, Assistant Director for Budget Analysis.

    congressional budget office estimated cost of intergovernmental 
                                mandates

    1. Bill number: H.R. 3539.
    2. Bill title: Federal Aviation Authorization Act of 1996.
    3. Bill status: As ordered reported by the House Committee 
on Transportation and Infrastructure on June 6, 1996.
    4. Bill purpose: H.R. 3539 would reauthorize several 
Federal Aviation Administration (FAA) programs and make 
modifications to the airport improvement program (AIP). The 
bill would allow the Secretary of Transportation to require FAA 
certification for commuter airports and to approve the 
privatization of up to six public airports. In addition, the 
bill would amend the Metropolitan Washington Airports Act of 
1986 to expand the Airports Authority's board of directors, 
eliminate the board of review, and alter Congressional review 
procedures. The Committee also would recommend the 
reinstatement of several aviation taxes, including the airline 
passenger ticket tax.
    5. Intergovernmental mandates contained in the bill: H.R. 
3539 contains a number of mandates on state and local 
governments, and one provision that could be a mandate on state 
governments.
    State Taxing Authority. The bill contains a provision 
intended as a technical correction to the section of Title 49 
of the U.S. Code establishing the authority of states to levy 
certain aviation-related taxes. When that section of the code 
was recodified, it appeared to broaden the power of states to 
tax airlines. The correction is intended to return state taxing 
authority to the status quo as it existed before the 
recodification.
    The impact of this provision, however, is unclear. A simple 
correction would impose no new mandates. There is concern among 
some tax experts, however, that the proposed change goes beyond 
the intended fix and would impose new preemptions on states' 
taxing authority. A number of state tax officials assert that 
the proposed correction would increase the ambiguities in the 
statute and could lead to an interpretation of the law that 
would prohibit states from imposing certain aviation-related 
property, income, and other taxes. This issue is unlikely to be 
resolved without litigation. If the provision is interpreted as 
the states fear it will be, it would constitute a mandate on 
state governments as defined by Public Law 104-4 because it 
would prohibit states from raising certain revenues.
    Certification of Commuter Airports. Enactment of the bill 
would result in a requirement that commuter airports, which are 
predominantly publicly owned, obtain operating certificates 
from the FAA.
    Prohibition on Airport Revenue Diversion. The bill would 
expand and codify an existing FAA regulation that prohibits the 
use of airport revenues to pay for non-airport related 
activities.
    Metropolitan Washington Airports Authority (MWAA). The bill 
would require the Airports Authority to pay the salary of up to 
two individuals to be hired by the Secretary of Transportation 
as well as to enforce an existing MWAA regulation that 
restricts the use of the Dulles access highway to certain 
vehicles. The bill would also give the Secretary the authority, 
in compelling circumstances, to add take-off and landing slots 
at National Airport as long as the action would not adversely 
affect safety.
    Airline Passenger Ticket Tax. The bill also contains a 
recommendation to the Committee on Ways and Means regarding the 
reinstatement of several aviation taxes, including the airline 
passenger ticket tax. Should this provision be enacted into law 
as recommended, it would constitute a mandate on state, local, 
and tribal governments that purchase airline tickets for 
business travel by their employees.
    6. Estimated direct costs to state, local, and tribal 
governments:

(a) Is the $50 Million annual threshold exceeded?

    Because of the uncertainty surrounding the interpretation 
of section 402, dealing with state taxing authority, CBO is 
uncertain whether the threshold established in Public Law 104-4 
would be exceeded.

(b) Total direct costs of mandates:

    Depending upon the interpretation of section 402, the 
bill's mandate costs could exceed the $50 million annual 
threshold established in Public Law 104-4. The state tax 
provision alone, if interpreted broadly, would have a 
potentially significant revenue impact that could approach or 
exceed the $50 million threshold. CBO cannot estimate its exact 
magnitude at this time. CBO estimates that FAA certification 
requirements would result in aggregate costs to commuter 
airports of up to $20 million a year in fiscal years 1998 
through 2000 and $10 million annually thereafter.
    Extension of the airline passenger ticket tax, as 
recommended by the Committee, would impose costs on state, 
local, and tribal governments that purchase airline tickets for 
business travel by their employees. CBO estimates that the 
direct cost of the tax to such governments would not exceed $50 
million in any year.
    The bill's other mandates would have a negligible effect on 
the budgets of state, local, and tribal governments.

(c) Estimate of necessary budget authority:

    Not applicable.
    7. Basis of estimate:
    State Taxing Authority: Based on information from several 
states, CBO believes that, if amended by this bill, certain 
subsections of 49 U.S.C. 40116 could be read together to limit 
states to taxing only those aviation-related goods and services 
for which a direct nexus to flights taking off or landing in 
the state could be established. Current law does not require 
that states show such a flight connection when levying 
property, income, sales, use, and other taxes on air carriers 
or other providers of aviation services. Many states use 
apportionment formulas to calculate these taxes, and it is 
possible that the proposed change could preclude this practice.
    Based on a survey of state tax officials and information 
from the Multistate Tax Commission, CBO estimates that the bill 
could result in tax preemptions in as many as half of the 
states. Depending upon the interpretation of the proposed 
change, some states could face annual revenue losses in the 
millions of dollars. Ambiguities in both the existing 
recodified statute and the proposed change, however, make it 
difficult to predict the extent of the possible preemption, if 
any, and to quantify the revenue losses that might result from 
it.
    Certification of Commuter Airports. H.R. 3539 would provide 
the Administrator of the FAA with the legislative authority to 
require commuter airports, excluding those in Alaska, to have 
operating certificates. Commuter airports are those that serve 
scheduled passenger service using aircraft with between 10 and 
30 seats. There are 100-200 such airports, virtually all owned 
and operated by state and local governments. Based on 
information from the Department of Transportation and industry 
representatives, CBO assumes that the Administrator would issue 
a rule requiring operating certificates for these airports 
approximately one year following the bill's enactment and that 
it would allow the airports at least three years to come into 
compliance.
    The FAA has not yet drafted the rule, however, and it is 
not clear how extensive the requirements, and thus the costs, 
would be. The safety features the FAA currently requires for 
the certification of large airports, particularly those 
relating to rescue and firefighting, would not necessarily be 
appropriate or economically feasible for many commuter airports 
because of their small size and infrequent service. The bill 
would also require the Administrator to select regulatory 
alternatives that attempt to minimize the burden on commuter 
airports while providing a level of safety comparable to that 
at larger airports.
    Assuming the FAA issues safety regulations tailored to the 
characteristics of commuter airports, CBO estimates that each 
airport could face, on average, initial capital costs of up to 
$300,000 and ongoing costs of $50,000 per year. Assuming the 
airports would spread the capital costs over at least three 
years, CBO estimates that this provision would result in 
aggregate costs of up to $20 million a year in the first three 
years after the Administrator issues the rule and $10 million 
annually after that.
    Prohibition on Airport Revenue Diversion. H.R. 3539 would 
expand the restriction on the use of airport revenues to all 
airports with FAA operating certificates. Currently, the 
restriction applies only to those airports that have received 
AIP grants. Based on information from the FAA, CBO estimates 
that codifying the prohibition would affect approximately 600 
state and locally owned airports. That figure would grow at 
least 700-800 within four years with the certification of 
commuter airports. CBO estimates that these airports would 
incur no new costs as a result of this mandate because most, if 
not all, of these airports are currently restricted from 
diverting revenue by FAA regulations associated with past AIP 
grants agreements.
    Metropolitan Washington Airports Authority. According to 
information from MWAA, the cost of the two DOT staff salaries 
and associated benefits would total less than $300,000 per 
year. The Airports Authority would incur no new costs in 
enforcing the Dulles access highway restrictions, because it 
already engages in such enforcement. This bill would, however, 
preclude MWAA from choosing in the future to eliminate this 
enforcement or to repeal the regulation altogether. With regard 
to take-off and landing slots. MWAA estimates that the 
Secretary of Transportation could add at most six slots per day 
under this provision and that this would not impose any 
significant costs on the Airports Authority. CBO estimates the 
total costs to MWAA of complying with these provisions would be 
negligible.
    Airline Passenger Ticket Tax. CBO contacted a number of 
professional associations as well as federal aviation and 
tourism agencies in an effort to determine what portion of 
airline travel is conducted by state, local, and tribal 
employees. We have found no specific data indicating how much 
these governments use air transportation, but data from an 
independent consulting firm, D.K. Shifflet & Associates, 
indicates that all government and military travel comprises 
approximately 3 percent of civilian airline trips.
    CBO estimates that travel by employees of local and tribal 
governments represents a relatively small portion of total 
government air travel. In addition, we estimate that travel by 
state employees would be slightly less expensive than federal 
travel because of shorter traveling distances. Using these 
assumptions, CBO estimates that the airline ticket tax--10 
percent of the purchase price--would impose direct costs on 
state and local governments totaling between $25 million and 
$40 million annually during the 1997-1999 period and less than 
$10 million in the first quarter of 2000. These costs could be 
lower if airlines absorb some of the costs of the taxes.
    8. Appropriation or other Federal financial assistance 
provided in bill to cover mandate costs: The bill would provide 
contract authority for 1997 through 1999 totaling $7 billion 
for the federal airport improvement program. These amounts 
could help fund projects required for commuter airport 
certification. The AIP provides financial assistance to 
airports for safety, development, and other types of qualified 
projects.
    Based on the program's legislated apportionments and set-
asides, CBO estimates that only a fraction of the total 
contract authority would be available to the affected commuter 
airports. For example, less than 10 percent of the $1.45 
billion in 1996 AIP funds was earmarked for airports that would 
be affected by the certification requirements in this bill. 
H.R. 3539 would collapse several apportionment categories, 
including that for small commercial service airports, into a 
single pool of funds. While commuter airports would potentially 
have access to a larger amount of assistance, they would have 
to compete against far more projects than under current law.
    Commuter airports currently use AIP money to fund various 
airport safety and development projects, many of which are 
undertaken to bring the airport up to FAA standards. In 
addition, AIP funds cannot be used to help pay for many of the 
ongoing costs commuter airports might face as a result of new 
certification requirements. Thus, CBO estimates that the 
contract authority provided in the bill would only partially 
offset the costs imposed on commuter airports by the 
certification requirement.
    9. Other impacts on State, local, and tribal governments:
    Airport Privatization. H.R. 3539 would establish an airport 
privatization test program. The bill would allow the Secretary 
to approve up to six privatization proposals from state and 
local governments. The Secretary would have the authority to 
exempt approved projects from several requirements, including 
the repayment of federal grants and other assistance and the 
prohibition on revenue diversion. The privatized airports would 
continue to be eligible to receive AIP grants and to impose 
passenger facility charges.
    Denver International Airport. The bill would allow the 
Denver International Airport, notwithstanding any other 
provision of law, to receive federal financial assistance to 
construct a sixth runway on its property.
    Metropolitan Washington Airports Authority. The bill would 
require the President of the United States to appoint four new 
members to MWAA's board of directors. If the new board members 
are not in place by the April 29, 1997, deadline, the board's 
authority to take major actions--such as adopt an annual 
budget, authorize the issuance of bonds, award contracts, and 
undertake new projects--would cease until it seated the 
required appointees. In any event, the bill would terminate the 
board's authority on September 30, 1998. While in the short run 
this could have the effect of lowering MWAA's costs, in the 
long run it would lead to overall increased costs as a result 
of cost increases, forgone revenue, and lost bond refinancing 
opportunities.
    10. Previous CBO estimate: CBO transmitted 
intergovernmental mandates statements on February 29, 1996, and 
on March 21, 1996, for two slightly different versions of H.R. 
1036, the Metropolitan Washington Airports Amendments Act of 
1995, as ordered reported by the House Committee on 
Transportation and Infrastructure on March 1, 1995, and 
subsequently amended. There is no significant difference 
between the three in the cost of mandates imposed on MWAA.
    11. Estimate prepared by: Karen McVey. Leo Lex--passenger 
ticket tax.
    12. Estimate approved by: Robert A. Sunshine, per Paul N. 
Van de Water. Assistant Director for Budget Analysis.

    congressional budget office estimate of costs of private-sector 
                                mandates

    1. Bill number: H.R. 3539.
    2. Bill title: Federal Aviation Authorization of 1996.
    3. Bill status: As ordered reported by the House Committee 
on Transportation and Infrastructure on June 6, 1996.
    4. Bill purpose: H.R. 3539 would provide contract authority 
and authorize appropriations for Federal Aviation 
Administration (FAA) programs. The bill would also establish 
new requirements for small airports and would extend a 
restriction on the use of airport revenues. In addition, the 
bill would establish new requirements for hiring passenger and 
property screeners. The bill would also establish user fees for 
air traffic control and other services for aircraft that do not 
take off or land in the United States.
    5. Private-sector mandates contained in bill: The 
Congressional Budget Office (CBO) identified private-sector 
mandates in this bill that would impose requirements on airport 
owners and air carriers.
    6. Estimated direct cost to the private sector: CBO 
estimates that the direct costs of the private-sector mandates 
identified in titles I-V of this bill would not exceed the $100 
million annual threshold established in Public Law 104-4. Title 
VI would reauthorize the Airport and Airway Trust Fund taxes 
and the authority to expend balances from the fund that expired 
in December 1995. However, that title is preceded by a 
paragraph that recommends the title to the Committee on Ways 
and Means. If the provisions of Title VI were enacted into law, 
the direct costs to the private sector would exceed the 
threshold for private-sector mandates.

Mandates on airport owners

    Section 406 would require owners of small airports, 
excluding those in Alaska, that serve any scheduled passenger 
operation of an air carrier operating aircraft designed for 10 
to 30 passenger seats to obtain an operating certificate from 
the FAA. The FAA would determine the safety regulations and 
standards that those airports would be required to meet to 
obtain a certificate. Based on information from the FAA, CBO 
estimates that few, if any, privately owned airports would fall 
into this category. Thus, CBO estimates that the direct costs 
to the private sector would be minimal.
    Section 407 would extend a restriction on the use of 
airport revenues to all persons holding an airport operating 
certificate. That restriction would prohibit the use of 
revenues generated by the airport for any purpose other than 
the capital or operating costs of the airport, the local 
airport system, or other local facilities related to air 
transportation. Currently, the restriction on the diversion of 
airport revenue applies only to those airports receiving 
federal grants. Extending the restriction to all persons 
holding an operating certificate would impose a new restriction 
on three privately owned airports located in Alaska, which 
operate solely for the owners' use and are not available to the 
public. According to the Department of Transportation, 
penalties have not been assessed for any diversion of airport 
revenue, and future penalties are not anticipated. Although 
this section imposes a mandate on those privately owned 
airports, CBO estimates that this mandate would not result in 
any private-sector costs.

Mandates on air carriers

    Section 408 would give the FAA authority to require that an 
employment investigation include a check for the existence of a 
criminal record for those persons responsible for screening 
passengers and property. The specific circumstances that would 
require such a check for a criminal record would be determined 
through FAA rulemaking. Based on information from the FAA and 
the airline industry, CBO estimates that the added cost to the 
air carriers would range from $50,000 to $8 million annually, 
depending on the exact rule. That estimate is based on the cost 
per person of the check for a criminal record that is currently 
required for other employees and the employment turnover rate 
for passenger and property screeners.
    Section 409 would impose fees for air traffic control and 
related services on owners of aircraft that neither take off 
from nor land in the United States. Based on information 
provided by the airline industry, CBO estimates that few 
flights by domestic air carriers could fall into that category. 
Thus the direct costs to the private sector would be 
negligible.

Extension of the airport and airway trust fund taxes

    The bill recommends Title VI, Extension of Airport and 
Airway Trust Fund Taxes and Expenditure Authority, to the 
Committee on Ways and Means. If enacted, section 601 of that 
title would reinstate the Airport and Airway Trust Fund taxes 
on fuel and passenger tickets through December 1999. Those 
taxes would impose mandates on air carriers and passengers. CBO 
estimates the cost to air carriers and passengers to be about 
$4 billion annually, though the cost in 1997 would be less 
because some tickets would be purchased before the tax goes 
into effect. The vast majority of those taxes would be paid by 
the private sector.
    7. Appropriations or other federal financial assistance: 
None.
    8. Previous CBO estimate: On July 16, 1996, CBO transmitted 
a private-sector cost estimate for Federal Aviation 
Reauthorization Act of 1996, as ordered reported by the Senate 
Committee on Commerce, Science, and Transportation on June 13, 
1996. The mandates on air carriers related to employment 
investigations and fees for air traffic control and related 
services are similar in both bills.
    9. Estimate prepared by: Jean Wooster.
    10. Estimate approved by: Jan Acton, Assistant Director.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3 of rule XIII of the Rules of the 
House of Representatives, changes in existing law made by the 
bill, as reported, are shown as follows (existing law proposed 
to be omitted is enclosed in black brackets, new matter is 
printed in italic, existing law in which no change is proposed 
is shown in roman):

                      TITLE 49, UNITED STATES CODE

          * * * * * * *

                SUBTITLE I--DEPARTMENT OF TRANSPORTATION

          * * * * * * *

                        CHAPTER 1--ORGANIZATION

          * * * * * * *

Sec. 106. Federal Aviation Administration

  (a) The Federal Aviation Administration is an administration 
in the Department of Transportation.
          * * * * * * *
  (k) Aircraft Noise Ombudsman.--
          (1) Establishment.--There shall be in the 
        Administration an Aircraft Noise Ombudsman.
          (2) General duties and responsibilities.--The 
        Ombudsman shall--
                  (A) be appointed by the Administrator;
                  (B) serve as a liaison with the public on 
                issues regarding aircraft noise; and
                  (C) be consulted when the Administration 
                proposes changes in aircraft routes so as to 
                minimize any increases in aircraft noise over 
                populated areas.
  [(k)] (l) Authorization of Appropriations for Operations.--
There is authorized to be appropriated to the Secretary of 
Transportation for operations of the Administration 
[$4,088,000,000 for fiscal year 1991, $4,412,600,000 for fiscal 
year 1992, $4,716,500,000 for fiscal year 1993, $4,576,000,000 
for fiscal year 1994, $4,674,000,000 for fiscal year 1995, and 
$4,810,000,000 for fiscal year 1996.] $5,158,000,000 for fiscal 
year 1997, $5,344,000,000 for fiscal year 1998, and 
$5,538,000,000 for fiscal year 1999.
          * * * * * * *

                    SUBTITLE VII--AVIATION PROGRAMS

          * * * * * * *

                    PART A--AIR COMMERCE AND SAFETY

                           SUBPART I--GENERAL

                    CHAPTER 401--GENERAL PROVISIONS

Sec.
40101.  Policy.
     * * * * * * *
[40120.  Relationship to other laws.]
40120. Protection of voluntarily submitted information.
40121. Relationship to other laws.
          * * * * * * *

Sec. 40110. General procurement authority

  (a) * * *
  (b) Purchase of Housing Units.--
          (1) Authority.--In carrying out this part, the 
        Administrator may purchase a housing unit (including a 
        condominium or a housing unit in a building owned by a 
        cooperative) that is located outside the contiguous 
        United States if the cost of the unit is $200,000 or 
        less.
          (2) Continuing obligations.--Notwithstanding section 
        1341 of title 31, the Administrator may purchase a 
        housing unit under paragraph (1) even if there is an 
        obligation thereafter to pay necessary and reasonable 
        fees duly assessed upon such unit, including fees 
        related to operation, maintenance, taxes, and 
        insurance.
          (3) Certification to congress.--The Administrator may 
        purchase a housing unit under paragraph (1) only if, at 
        least 30 days before completing the purchase, the 
        Administrator transmits to the Committee on 
        Transportation and Infrastructure of the House of 
        Representatives and the Committee on Commerce, Science, 
        and Transportation of the Senate a report containing--
                  (A) a description of the housing unit and its 
                price;
                  (B) a certification that the price does not 
                exceed the median price of housing units in the 
                area; and
                  (C) a certification that purchasing the 
                housing unit is the most cost-beneficial means 
                of providing necessary accommodations in 
                carrying out this part.
          (4) Payment of fees.--The Administrator may pay, when 
        due, fees resulting from the purchase of a housing unit 
        under this subsection from any amounts made available 
        to the Administrator.
  [(b)] (c) Duties and Powers.--When carrying out subsection 
(a) of this section, the Administrator of the Federal Aviation 
Administration--
          (1) * * *
          * * * * * * *

Sec. 40116. State taxation

  (a) Definition.--In this section, ``State'' includes the 
District of Columbia, a territory or possession of the United 
States, and a political authority of at least 2 States.
  (b) Prohibitions.--Except as provided in [subsection (c) of 
this section and] section 40117 of this title, [a State or] a 
State, a political subdivision of a State, and any person that 
has purchased or leased an airport under section 47132 of this 
title may not levy or collect a tax, fee, head charge, or other 
charge on--
          (1) * * *
          * * * * * * *

Sec. 40117. Passenger facility fees

  (a) Definitions.--In this section--
          (1) * * *
          * * * * * * *
          (3) ``eligible airport-related project'' means a 
        project--
                  (A) * * *
          * * * * * * *
                  [(F) in addition to projects eligible under 
                subparagraph (A), the construction, 
                reconstruction, repair, or improvement of areas 
                of an airport used for the operation of 
                aircraft or actions to mitigate the 
                environmental effects of such construction, 
                reconstruction, repair, or improvement when the 
                construction, reconstruction, repair, 
                improvement, or action is necessary for 
                compliance with the responsibilities of the 
                operator or owner of the airport under the 
                Americans with Disabilities Act of 1990, the 
                Clean Air Act, or the Federal Water Pollution 
                Control Act with respect to the airport.]
                  (F) for debt financing of a terminal 
                development project at a commercial service 
                airport that each year has .05 percent or less 
                of the total passenger boardings in the United 
                States if construction began on the project 
                after November 5, 1988, and before November 5, 
                1990, and the eligible agency certifies that no 
                other eligible airport-related projects 
                affecting safety, security, or capacity will be 
                deferred by the debt financing project.
          * * * * * * *

Sec. 40120. Protection of voluntarily submitted information

  (a) General Rule.--Notwithstanding any other provision of 
law, neither the Administrator of the Federal Aviation 
Administration, nor any agency receiving information from the 
Administrator, may disclose voluntarily provided safety or 
security related information if the Administrator finds that--
          (1) the disclosure of the information would inhibit 
        the voluntary provision of that type of information;
          (2) the receipt of that type of information would aid 
        in fulfilling the Administrator's safety and security 
        responsibilities; and
          (3) the withholding of the information would not be 
        inconsistent with the Administrator's safety and 
        security responsibilities.
  (b) Regulations.--The Administrator shall issue regulations 
to carry out this section.

Sec. [40120.] 40121. Relationship to other laws

  (a) Nonapplication.--Except as provided in the International 
Navigational Rules Act of 1977 (33 U.S.C. 1601 et seq.), the 
navigation and shipping laws of the United States and the rules 
for the prevention of collisions do not apply to aircraft or to 
the navigation of vessels related to those aircraft.
  (b) Extending Application Outside United States.--The 
President may extend (in the way and for periods the President 
considers necessary) the application of this part to outside 
the United States when--
          (1) an international arrangement gives the United 
        States Government authority to make the extension; and
          (2) the President decides the extension is in the 
        national interest.
  (c) Additional Remedies.--A remedy under this part is in 
addition to any other remedies provided by law.
          * * * * * * *

                    SUBPART II--ECONOMIC REGULATION

          * * * * * * *

                  CHAPTER 417--OPERATIONS OF CARRIERS

          * * * * * * *

                       SUBCHAPTER I--REQUIREMENTS

          * * * * * * *

Sec. 41714. Availability of slots

  (a) Making Slots Available for Essential Air Service.--
          (1) Operational authority.--If basic essential air 
        service under subchapter II of this chapter is to be 
        provided from an eligible point to a high density 
        airport [(other than Washington National Airport)], the 
        Secretary of Transportation shall ensure that the air 
        carrier providing or selected to provide such service 
        has sufficient operational authority at the high 
        density airport to provide such service. The 
        operational authority shall allow flights at reasonable 
        times taking into account the needs of passengers with 
        connecting flights.
          * * * * * * *
  (b) Slots for Foreign Air Transportation.--
          (1) Exemptions.--If the Secretary finds it to be in 
        the public interest at a high density airport [(other 
        than Washington National Airport)], the Secretary may 
        grant by order exemptions from the requirements of 
        subparts K and S of part 93 of title 14, Code of 
        Federal Regulations (pertaining to slots at high 
        density airports), to enable air carriers and foreign 
        air carriers to provide foreign air transportation 
        using Stage 3 aircraft.
          * * * * * * *
  (c) Slots for New Entrants.--
          (1) In general.--If the Secretary finds it to be in 
        the public interest and the circumstances to be 
        exceptional, the Secretary may by order grant 
        exemptions from the requirements under subparts K and S 
        of part 93 of title 14, Code of Federal Regulations 
        (pertaining to slots at high density airports), to 
        enable new entrant air carriers to provide air 
        transportation at high density airports [(other than 
        Washington National Airport)].
          * * * * * * *
  (h) Limitation on Authority To Grant Exemptions.--The 
Secretary shall not issue an exemption under this section to 
the requirements of subparts K and S of part 93 of title 14 of 
the Code of Federal Regulations (pertaining to slots at high 
density airports) if the grant of such exemption would 
adversely affect safety.
  [(h)] (i) Definitions.--In this section and section 41734(h), 
the following definitions apply:
          (1) * * *
          * * * * * * *

                          SUBPART III--SAFETY

          * * * * * * *

                     CHAPTER 447--SAFETY REGULATION

          * * * * * * *

Sec. 44704. Type certificates, production certificates, and 
                    airworthiness certificates

  (a) * * *
  (b) Supplemental Type Certificates.--
          (1) Issuance.--The Administrator may issue a type 
        certificate designated as a supplemental type 
        certificate for a change to an aircraft, aircraft 
        engine, propeller, or appliance.
          (2) Contents.--A supplemental type certificate issued 
        under paragraph (1) shall consist of the change to the 
        aircraft, aircraft engine, propeller, or appliance with 
        respect to the previously issued type certificate for 
        the aircraft, aircraft engine, propeller, or appliance.
          (3) Requirement.--If the holder of a supplemental 
        type certificate agrees to permit another person to use 
        the certificate to modify an aircraft, aircraft engine, 
        propeller, or appliance, the holder shall provide the 
        other person with written evidence, in a form 
        acceptable to the Administrator, of that agreement. A 
        person may change an aircraft, aircraft engine, 
        propeller, or appliance based on a supplemental type 
        certificate only if the person requesting the change is 
        the holder of the supplemental type certificate or has 
        permission from the holder to make the change.
  [(b)] (c) Production Certificates.--The Administrator shall 
issue a production certificate authorizing the production of a 
duplicate of an aircraft, aircraft engine, propeller, or 
appliance for which a type certificate has been issued when the 
Administrator finds the duplicate will conform to the 
certificate. On receiving an application, the Administrator 
shall inspect, and may require testing of, a duplicate to 
ensure that it conforms to the requirements of the certificate. 
The Administrator may include in a production certificate terms 
required in the interest of safety.
  [(c)] (d) Airworthiness Certificates.--(1) The registered 
owner of an aircraft may apply to the Administrator for an 
airworthiness certificate for the aircraft. The Administrator 
shall issue an airworthiness certificate when the Administrator 
finds that the aircraft conforms to its type certificate and, 
after inspection, is in condition for safe operation. The 
Administrator shall register each airworthiness certificate and 
may include appropriate information in the certificate. The 
certificate number or other individual designation the 
Administrator requires shall be displayed on the aircraft. The 
Administrator may include in an airworthiness certificate terms 
required in the interest of safety.
  (2) A person applying for the issuance or renewal of an 
airworthiness certificate for an aircraft for which ownership 
has not been recorded under section 44107 or 44110 of this 
title must submit with the application information related to 
the ownership of the aircraft the Administrator decides is 
necessary to identify each person having a property interest in 
the aircraft and the kind and extent of the interest.
          * * * * * * *

Sec. 44706. Airport operating certificates

  (a) General.--The Administrator of the Federal Aviation 
Administration shall issue an airport operating certificate to 
a person desiring to operate an airport--
          (1) that serves an air carrier operating aircraft 
        designed for at least 31 passenger seats;
          (2) that is not located in the State of Alaska and 
        serves any scheduled passenger operation of an air 
        carrier operating aircraft designed for more than 9 
        passenger seats but less than 31 passenger seats; and
          [(2)] (3) that the Administrator requires to have a 
        certificate; [and]
          [(3) when]
if the Administrator finds, after investigation, that the 
person properly and adequately is equipped and able to operate 
safely under this part and regulations and standards prescribed 
under this part.
          * * * * * * *
  (d) Use of Revenues.--
          (1) Prohibition.--A person holding an airport 
        operating certificate under this section may not expend 
        local taxes on aviation fuel (except taxes in effect on 
        December 30, 1987) or the revenues generated by the 
        airport for any purpose other than the capital or 
        operating costs of--
                  (A) the airport;
                  (B) the local airport system; or
                  (C) other local facilities owned or operated 
                by the person and directly and substantially 
                related to the air transportation of passengers 
                or property.
          (2) Exceptions.--Paragraph (1) does not apply if a 
        provision enacted not later than September 2, 1982, in 
        a law controlling financing by the owner or operator, 
        or a covenant or assurance in a debt obligation issued 
        not later than September 2, 1982, by the owner or 
        operator, provides that the revenues, including local 
        taxes on aviation fuel at public airports, from any of 
        the facilities of the owner or operator, including the 
        airport, be used to support not only the airport but 
        also the general debt obligations or other facilities 
        of the owner or operator.
          (3) Authority to issue waivers to airports not 
        receiving grant assistance.--The Administrator may 
        waive the application of paragraph (1) with respect to 
        any airport that has not received grant assistance 
        under chapter 471 of this title or the Airport and 
        Airway Improvement Act of 1982 in the 10-year period 
        ending on the date of the enactment of this subsection.
          (4) Limitation on statutory construction.--This 
        subsection does not prevent the use of a State tax on 
        aviation fuel to support a State aviation program or 
        the use of airport revenue on or off the airport for a 
        noise mitigation purpose.
  (e) Commuter Airports.--In developing the terms required by 
subsection (b) for airports covered by subsection (a)(2), the 
Administrator shall identify and consider a reasonable number 
of regulatory alternatives and select from such alternatives 
the least costly, most cost-effective or the least burdensome 
alternative that will provide comparable safety at airports 
described in subsections (a)(1) and (a)(2).
  (f) Effective Date.--Any regulation establishing the terms 
required by subsection (b) for airports covered by subsection 
(a)(2) shall not take effect until such regulation, and a 
report on the economic impact of the regulation on air service 
to the airports covered by the rule, has been submitted to 
Congress and 120 days have elapsed following the date of such 
submission.
          * * * * * * *

                         CHAPTER 449--SECURITY

          * * * * * * *

              SUBCHAPTER II--ADMINISTRATION AND PERSONNEL

          * * * * * * *

Sec. 44936. Employment investigations and restrictions

  (a) Employment Investigation Requirement.--[(1) The 
Administrator]
          (1) Employees.--
                  (A) Persons with access to aircraft and other 
                secured areas.--The Administrator of the 
                Federal Aviation Administration shall require 
                by regulation that an employment investigation, 
                including a criminal history record check, 
                shall be conducted, as the Administrator 
                decides is necessary to ensure air 
                transportation security, of each individual 
                employed in, or applying for, a position in 
                which the individual has unescorted access, or 
                may permit other individuals to have unescorted 
                access, to--
                          [(A)] (i) aircraft of an air carrier 
                        or foreign air carrier; or
                          [(B)] (ii) a secured area of an 
                        airport in the United States the 
                        Administrator designates that serves an 
                        air carrier or foreign air carrier.
                  (B) Persons responsible for screening 
                passengers and property.--
                          (i) In general.--The Administrator 
                        may require by regulation that an 
                        employment investigation (including a 
                        criminal history record check in cases 
                        in which the employment investigation 
                        reveals a gap in employment of 12 
                        months or more that the individual does 
                        not satisfactorily account for) be 
                        conducted for individuals who will be 
                        responsible for screening passengers or 
                        property under chapter 449 of this 
                        title and their supervisors.
                          (ii) Special rule.--If an individual 
                        requires a criminal history record 
                        check under clause (i), the individual 
                        may be employed as a screener until the 
                        check is completed if the individual is 
                        subject to supervision.
  [(2) An air carrier]
          (2) Responsibility of air carriers, foreign air 
        carriers, and airport operators.--An air carrier, 
        foreign air carrier, or airport operator that employs, 
        or authorizes or makes a contract for the services of, 
        an individual in a position described in paragraph (1) 
        of this subsection shall ensure that the investigation 
        the Administrator requires is conducted.
          * * * * * * *

                           CHAPTER 453--FEES

Sec.
45301.  Authority to impose fees.
45302.  Fees involving aircraft not providing air transportation.
45303.  Maximum fees for private person services.
45304.  Prohibition on imposition of unauthorized fees; fees for 
          services provided to certain aircraft.
          * * * * * * *

Sec. 45304. Prohibition on imposition of unauthorized fees; fees for 
                    services provided to certain aircraft

  (a) Prohibition.--Notwithstanding any other provision of law, 
the Administrator of the Federal Aviation Administration shall 
not impose any fee that is not in effect on the date of the 
enactment of this section and that is not authorized by law.
  (b) Authority To Impose Fees.--The Administrator is 
authorized to establish a schedule of fees (and a collection 
process for such fees), to be effective not later than October 
1, 1996, for services provided by the Administration to 
aircraft that neither take off from nor land in the United 
States. The schedule shall establish the fees at levels that 
will recover $30,000,000 in the first year in which the fees 
are implemented.

                 SUBPART IV--ENFORCEMENT AND PENALTIES

          * * * * * * *

                         CHAPTER 463--PENALTIES

          * * * * * * *

Sec. 46301. Civil penalties

  (a) General Penalty.--(1) * * *
          * * * * * * *
  [(5) In the case of a violation of section 47107(b) of this 
title, the maximum civil penalty for a continuing violation 
shall not exceed $50,000.]
          (5) Penalty for diversion of aviation revenues.--The 
        amount of a civil penalty assessed under this section 
        for a violation of section 47107(b) of this title (or 
        any assurance made under such section) or section 
        44706(d) of this title may be increased above the 
        otherwise applicable maximum amount under this section 
        to an amount not to exceed 3 times the amount of 
        revenues that are used in violation of such section.
          * * * * * * *

                 PART B--AIRPORT DEVELOPMENT AND NOISE

                    CHAPTER 471--AIRPORT DEVELOPMENT

                    SUBCHAPTER I--AIRPORT IMPROVEMENT

Sec.
47101.  Policies.
     * * * * * * *
[47128. State block grant pilot program.]
47128. State block grant program.
     * * * * * * *
47132. Private ownership of airports.

                   SUBCHAPTER I--AIRPORT IMPROVEMENT

Sec. 47101. Policies

  (a) * * *
          * * * * * * *
  [(g) Cooperation.--To carry out the policy of subsection 
(a)(5) of this section, the Secretary of Transportation shall 
cooperate with State and local officials in developing airport 
plans and programs that are based on overall transportation 
needs. The airport plans and programs shall be developed in 
coordination with other transportation planning and considering 
comprehensive long-range land-use plans and overall social, 
economic, environmental, system performance, and energy 
conservation objectives. The process of developing airport 
plans and programs shall be continuing, cooperative, and 
comprehensive to the degree appropriate to the complexity of 
the transportation problems.]
  (g) Intermodal Planning.--To carry out the policy of 
subsection (a)(5) of this section, the Secretary of 
Transportation shall take each of the following actions:
          (1) Coordination in development of airport plans and 
        programs.--Cooperate with State and local officials in 
        developing airport plans and programs that are based on 
        overall transportation needs. The airport plans and 
        programs shall be developed in coordination with other 
        transportation planning and considering comprehensive 
        long-range land-use plans and overall social, economic, 
        environmental, system performance, and energy 
        conservation objectives. The process of developing 
        airport plans and programs shall be continuing, 
        cooperative, and comprehensive to the degree 
        appropriate to the complexity of the transportation 
        problems.
          (2) Goals for airport master and system plans.--
        Encourage airport sponsors and State and local 
        officials to develop airport master plans and airport 
        system plans that--
                  (A) foster effective coordination between 
                aviation planning and metropolitan planning;
                  (B) include an evaluation of aviation needs 
                within the context of multimodal planning; and
                  (C) are integrated with metropolitan plans to 
                ensure that airport development proposals 
                include adequate consideration of land use and 
                ground transportation access.
          (3) Representation of airport operators on mpo's.--
        Encourage metropolitan planning organizations, 
        particularly in areas with populations greater than 
        200,000, to establish membership positions for airport 
        operators.
          * * * * * * *

Sec. 47102. Definitions

  In this subchapter--
          (1) * * *
          * * * * * * *
          (3) ``airport development'' means the following 
        activities, if undertaken by the sponsor, owner, or 
        operator of a public-use airport:
                  (A) * * *
          * * * * * * *
                  (E) relocating after December 31, 1991, an 
                air traffic control tower and any navigational 
                aid (including radar) if the relocation is 
                necessary to carry out a project approved by 
                the Secretary under this subchapter or under 
                section 40117.
                  (F) constructing, reconstructing, repairing, 
                or improving an airport, or purchasing capital 
                equipment for an airport, if [paid for by a 
                grant under this subchapter and] necessary for 
                compliance with the responsibilities of the 
                operator or owner of the airport under the 
                Americans with Disabilities Act of 1990 (42 
                U.S.C. 12101 et seq.), the Clean Air Act (42 
                U.S.C. 7401 et seq.), and the Federal Water 
                Pollution Control Act (33 U.S.C. 1251 et seq.), 
                except constructing or purchasing capital 
                equipment that would benefit primarily a 
                revenue-producing area of the airport used by a 
                nonaeronautical business.
          * * * * * * *
                  (H) preserving and extending the useful life 
                of runways and taxiways at a public-use airport 
                under the pilot program authorized by section 
                47105(g) of this title.
          * * * * * * *

Sec. 47104. Project grant authority

  (a) * * *
          * * * * * * *
  (c) Expiration of Authority.--After September 30, [1996] 
1999, the Secretary may not incur obligations under subsection 
(b) of this section, except for obligations of amounts--
          (1) * * *
          * * * * * * *

Sec. 47105. Project grant applications

  (a) * * *
          * * * * * * *
  (g) Runway Maintenance Program.--The Secretary may carry out 
a pilot program in each of fiscal years 1997, 1998, and 1999 
under which the Secretary may approve applications under this 
subchapter for not more than 10 projects in each of such fiscal 
years to preserve and extend the useful life of runways and 
taxiways at any airport for which an amount is apportioned 
under section 47114(d).

Sec. 47106. Project grant application approval conditioned on 
                    satisfaction of project requirements

  (a) Project Grant Application Approval.--The Secretary of 
Transportation may approve an application under this subchapter 
for a project grant only if the Secretary is satisfied that--
          (1) the project is consistent with plans (existing at 
        the time the project is approved) of public agencies 
        authorized by the State in which the airport is located 
        to plan for the development of the area surrounding the 
        airport, including transportation and land use plans;
          (2) the project will contribute to carrying out this 
        subchapter;
          (3) enough money is available to pay the project 
        costs that will not be paid by the United States 
        Government under this subchapter;
          (4) the project will be completed without 
        unreasonable delay; [and]
          (5) the sponsor has authority to carry out the 
        project as proposed[.]; and
          (6) with respect to a project for the location of an 
        airport, the sponsor has--
                  (A) provided the metropolitan planning 
                organization authorized to conduct metropolitan 
                planning for the area in which the airport is 
                to be located with not less than 30 days (i) to 
                review the airport master plan or the airport 
                layout plan in which the project is described 
                and depicted, and (ii) to submit comments on 
                such plans to the sponsor; and
                  (B) included in the sponsor's application to 
                the Secretary the sponsor's written responses 
                to any comments made by the metropolitan 
                planning organization.
          * * * * * * *

Sec. 47107. Project grant application approval conditioned on 
                    assurances about airport operations

  (a) General Written Assurances.--The Secretary of 
Transportation may approve a project grant application under 
this subchapter for an airport development project only if the 
Secretary receives written assurances, satisfactory to the 
Secretary, that--
          (1) * * *
          * * * * * * *
          (18) the airport and each airport record will be 
        available for inspection by the Secretary on reasonable 
        request, and a report of the airport budget will be 
        available to the public at reasonable times and places; 
        [and]
          (19) the airport owner or operator will submit to the 
        Secretary and make available to the public an annual 
        report listing in detail--
                  (A) all amounts paid by the airport to any 
                other unit of government and the purposes for 
                which each such payment was made; and
                  (B) all services and property provided to 
                other units of government and the amount of 
                compensation received for provision of each 
                such service and property[.]; and
          (20) the airport owner or operator will permit, to 
        the maximum extent practicable, intercity buses to have 
        access to the airport.
          * * * * * * *

Sec. 47110. Allowable project costs

  (a) * * *
          * * * * * * *
  (b) Allowable Cost Standards.--A project cost is allowable--
          (1) if the cost necessarily is incurred in carrying 
        out the project in compliance with the grant agreement 
        made for the project under this subchapter, including 
        any cost a sponsor incurs related to an audit the 
        Secretary requires under section 47121(b) or (d) of 
        this title;
          (2)(A) if the cost is incurred after the grant 
        agreement is executed and is for airport development or 
        airport planning carried out after the grant agreement 
        is executed;
          (B) if the cost is incurred after June 1, 1989, by 
        the airport operator (regardless of when the grant 
        agreement is executed) as part of a Government-approved 
        noise compatability program (including project 
        formulation costs) and is consistent with all 
        applicable statutory and administrative requirements; 
        or
          [(C) if the Government's share is paid only with 
        amounts apportioned under section 47114(c)(1)(A) and 
        (2) of this title and if the cost is incurred--
                  [(i) during the fiscal year ending September 
                30, 1994;
                  [(ii) before a grant agreement is executed 
                for the project but according to an airport 
                layout plan the Secretary approves before the 
                cost is incurred and all applicable statutory 
                and administrative requirements that would 
                apply to the project if the agreement had been 
                executed; and
                  [(iii) for work related to a project for 
                which a grant agreement previously was executed 
                during the fiscal year ending September 30, 
                1994;]
          (C) if the Government's share is paid only with 
        amounts apportioned under paragraphs (1) and (2) of 
        section 47114(c) of this title and if the cost is 
        incurred--
                  (i) after September 30, 1996;
                  (ii) before a grant agreement is executed for 
                the project; and
                  (iii) in accordance with an airport layout 
                plan approved by the Secretary and with all 
                statutory and administrative requirements that 
                would have been applicable to the project if 
                the project had been carried out after the 
                grant agreement had been executed;
          * * * * * * *
  (e) Letters of Intent.--(1) * * *
          * * * * * * *
          (6) Cost-benefit regulations.--The Secretary shall 
        issue regulations to require a cost-benefit analysis 
        for any letter of intent to be issued under paragraph 
        (1) for a project at an airport that each year has more 
        than .25 percent of the total passenger boardings in 
        the United States. Until the date on which such 
        regulations take effect, the Secretary may not issue a 
        letter of intent under paragraph (1) for any project 
        that is not yet under construction and that is to be 
        carried out at an airport described in the preceding 
        sentence.
          (7) Financing plans.--The Secretary shall require 
        airport sponsors to provide, as part of any request for 
        a letter of intent for a project under paragraph (1), 
        specific details on the proposed financing plan for the 
        project.
          (8) Consideration.--The Secretary shall consider the 
        effect of a project on overall national air 
        transportation policy when reviewing requests for 
        letters of intent under paragraph (1).
          [(6)] (9) Limitation on statutory construction.--
        Nothing in this section shall be construed to prohibit 
        the obligation of amounts pursuant to a letter of 
        intent under this subsection in the same fiscal year as 
        the letter of intent is issued.
          * * * * * * *
  (g) Use of Discretionary Funds.--A project for which cost 
reimbursement is provided under subsection (b)(2)(C) shall not 
receive priority consideration with respect to the use of 
discretionary funds made available under section 47115 of this 
title even if the amounts made available under paragraphs (1) 
and (2) of section 47114(c) are not sufficient to cover the 
Government's share of the cost of project.
          * * * * * * *

Sec. 47114. Apportionments

  (a) * * *
          * * * * * * *
  (c) Amounts Apportioned to Sponsors.--(1)(A) The Secretary 
shall apportion to the sponsor of each primary airport for each 
fiscal year an amount equal to--
          (i) $7.80 for each of the first 50,000 passenger 
        boardings at the airport during the prior calendar 
        year;
          (ii) $5.20 for each of the next 50,000 passenger 
        boardings at the airport during the prior calendar 
        year;
          (iii) $2.60 for each of the next 400,000 passenger 
        boardings at the airport during the prior calendar 
        year; [and]
          (iv) $.65 for each [additional] of the next 500,000 
        passenger boarding at the airport during the prior 
        calendar year[.]; and
          (v) $.50 for each additional passenger boarding at 
        the airport during the prior calendar year.
  (B) Not less than $500,000 nor more than $22,000,000 may be 
apportioned under subparagraph (A) of this paragraph to an 
airport sponsor for a primary airport for each fiscal year.
  [(2)(A) The Secretary shall apportion to the sponsors of 
airports served by aircraft providing air transportation of 
only cargo with a total annual landed weight of more than 
100,000,000 pounds for each fiscal year an amount equal to 3.5 
percent of the amount subject to apportionment each year, 
allocated among those airports in the proportion that the total 
annual landed weight of those aircraft landing at each of those 
airports bears to the total annual landed weight of those 
aircraft landing at all those airports. However, not more than 
8 percent of the amount apportioned under this paragraph may be 
apportioned for any one airport.
  [(B) Landed weight under subparagraph (A) of this paragraph 
is the landed weight of aircraft landing at each of those 
airports and all those airports during the prior calendar 
year.]
          (2) Cargo only airports.--
                  (A) Apportionment.--Subject to subparagraph 
                (D), the Secretary shall apportion an amount 
                equal to 2.5 percent of the amount subject to 
                apportionment each fiscal year to the sponsors 
                of airports served by aircraft providing air 
                transportation of only cargo with a total 
                annual landed weight of more than 100,000,000 
                pounds.
                  (B) Suballocation formula.--Any funds 
                apportioned under subparagraph (A) to sponsors 
                of airports described in subparagraph (A) shall 
                be allocated among those airports in the 
                proportion that the total annual landed weight 
                of aircraft described in subparagraph (A) 
                landing at each of those airports bears to the 
                total annual landed weight of those aircraft 
                landing at all those airports.
                  (C) Limitation.--Not more than 8 percent of 
                the amount apportioned under subparagraph (A) 
                may be apportioned for any one airport.
                  (D) Distribution to other airports.--Before 
                apportioning amounts to the sponsors of 
                airports under subparagraph (A) for a fiscal 
                year, the Secretary may set-aside a portion of 
                such amounts for distribution to the sponsors 
                of other airports, selected by the Secretary, 
                that the Secretary finds will be served 
                primarily by aircraft providing air 
                transportation of only cargo.
                  (E) Determination of landed weight.--Landed 
                weight under this paragraph is the landed 
                weight of aircraft landing at each airport 
                described in subparagraph (A) during the prior 
                calendar year.
  [(3)(A) Except as provided in subparagraph (B) of this 
paragraph, the total of all amounts apportioned under 
paragraphs (1) and (2) of this subsection may not be more than 
49.5 percent of the amount subject to apportionment for a 
fiscal year. If this subparagraph requires reduction of an 
amount that otherwise would be apportioned under this 
subsection, the Secretary shall reduce proportionately the 
amount apportioned to each sponsor of an airport under 
paragraphs (1) and (2) until the 49.5 percent limit is 
achieved.
  [(B) If a law limits the amount subject to apportionment to 
less than $1,900,000,000 for a fiscal year, the total of all 
amounts apportioned under paragraphs (1) and (2) of this 
subsection may not be more than 44 percent of the amount 
subject to apportionment for that fiscal year. If this 
subparagraph requires reduction of an amount that otherwise 
would be apportioned under this subsection, the Secretary shall 
reduce proportionately the amount apportioned to each sponsor 
of an airport under paragraphs (1) and (2) until the 44 percent 
limit is achieved.]
  (d) Amounts Apportioned to States.--(1) In this subsection--
          (A) ``area'' includes land and water.
          (B) ``population'' means the population stated in the 
        latest decennial census of the United States.
  (2) The Secretary shall apportion to the States [12] 18.5 
percent of the amount subject to apportionment for each fiscal 
year as follows:
          (A) [one] 0.66 percent of the apportioned amount to 
        Guam, American Samoa, the Northern Mariana Islands, the 
        Trust Territory of the Pacific Islands, and the Virgin 
        Islands.
          (B) except as provided in paragraph (3) of this 
        subsection, [49.5] 49.67 percent of the apportioned 
        amount for airports, [except primary airports and 
        airports described in section 47117(e)(1)(C) of this 
        title,] excluding primary airports but including 
        reliever and nonprimary commercial service airports, in 
        States not named in clause (A) of this paragraph in the 
        proportion that the population of each of those States 
        bears to the total population of all of those States.
          (C) except as provided in paragraph (3) of this 
        subsection, [49.5] 49.67 percent of the apportioned 
        amount for airports, [except primary airports and 
        airports described in section 47117(e)(1)(C) of this 
        title,] excluding primary airports but including 
        reliever and nonprimary commercial service airports, in 
        States not named in clause (A) of this paragraph in the 
        proportion that the area of each of those States bears 
        to the total area of all of those States.
          * * * * * * *

Sec. 47115. Discretionary fund

  (a) * * *
          * * * * * * *
  (d) Considerations.--In selecting a project for a grant to 
preserve and enhance capacity as described in subsection (c)(1) 
of this section, the Secretary shall consider--
          (1) the effect the project will have on the overall 
        national air transportation system capacity;
          (2) the project benefit and cost; [and]
          (3) the financial commitment from non-United States 
        Government sources to preserve or enhance airport 
        capacity[.];
          (4) the priority that the State gives to the project;
          (5) the projected growth in the number of passengers 
        that will be using the airport at which the project 
        will be carried out; and
          (6) any increase in the number of passenger boardings 
        in the preceding 12-month period at the airport at 
        which the project will be carried out, with priority 
        consideration to be given to projects at airports at 
        which the number of passenger boardings increased by at 
        least 20 percent as compared to the number of passenger 
        boardings in the 12-month period preceding such period.
          * * * * * * *
  [(f) Minimum Amount To Be Credited.--(1) In a fiscal year, at 
least $325,000,000 of the amount made available under section 
48103 of this title shall be credited to the fund. The amount 
credited is exclusive of amounts that have been apportioned in 
a prior fiscal year under section 47114 of this title and that 
remain available for obligation.
  [(2) In a fiscal year in which the amount credited under 
subsection (a) of this section is less than $325,000,000, the 
total amount calculated under paragraph (3) of this subsection 
shall be reduced by an amount that, when credited to the fund, 
together with the amount credited under subsection (a), equals 
$325,000,000.
  [(3) For a fiscal year, the total amount available to reduce 
to carry out paragraph (2) of this subsection is the total of 
the amounts determined under sections 47114(c)(1)(A) and (2) 
and (d) and 47117(e) of this title. Each amount shall be 
reduced by an equal percentage to achieve the reduction.]
  (g) Minimum Amount To Be Credited.--
          (1) General rule.--In a fiscal year, there shall be 
        credited to the fund, out of amounts made available 
        under section 48103 of this title, an amount that is at 
        least equal to the sum of--
                  (A) $50,000,000; plus
                  (B) the total amount required from the fund 
                to carry out in the fiscal year letters of 
                intent issued before January 1, 1996, under 
                section 47110(e) of this title or the Airport 
                and Airway Improvement Act of 1982.
        The amount credited is exclusive of amounts that have 
        been apportioned in a prior fiscal year under section 
        47114 of this title and that remain available for 
        obligation.
          (2) Reduction of apportionments.--In a fiscal year in 
        which the amount credited under subsection (a) is less 
        than the minimum amount to be credited under paragraph 
        (1), the total amount calculated under paragraph (3) 
        shall be reduced by an amount that, when credited to 
        the fund, together with the amount credited under 
        subsection (a), equals such minimum amount.
          (3) Amount of reduction.--For a fiscal year, the 
        total amount available to make a reduction to carry out 
        paragraph (2) is the total of the amounts determined 
        under sections 47114(c)(1)(A), 47114(c)(2), 47114(d), 
        and 47117(e) of this title. Each amount shall be 
        reduced by an equal percentage to achieve the 
        reduction.
  (h) Allocation of Amounts Exceeding Letter of Intent 
Requirements.--Of the amount credited to the fund for a fiscal 
year which exceeds the total amount required from the fund to 
carry out in the fiscal year letters of intent issued before 
January 1, 1996, under section 47110(e) of this title or the 
Airport and Airway Improvement Act of 1982--
          (1) not less than 15 percent shall be used for system 
        planning and for making grants to airports that are not 
        commercial service airports; and
          (2) not less than 30 percent shall be used for making 
        grants to commercial service airports that each year 
        have less than .25 percent of the total passenger 
        boardings in the United States.

Sec. 47116. Small airport fund

  (a) * * *
          * * * * * * *
  (d) Priority Consideration for Certain Projects.--In making 
grants to sponsors described in subsection (b)(2), the 
Secretary shall give priority consideration to multi-year 
projects for construction of new runways that the Secretary 
finds are cost beneficial and would increase capacity in a 
region of the United States.

Sec. 47117. Use of apportioned amounts

  (a) * * *
  (b) Period of Availability.--An amount apportioned under 
section 47114 of this title is available to be obligated for 
grants under the apportionment only during the fiscal year for 
which the amount was apportioned and the 2 fiscal years 
immediately after that year or the 3 fiscal years immediately 
following that year in the case of a primary airport that had 
less than .05 percent of the total boardings in the United 
States in the preceding calendar year. If the amount is not 
obligated under the apportionment within that time, it shall be 
added to the discretionary fund.
          * * * * * * *
  (e) Special Apportionment Categories.--(1) The Secretary 
shall use amounts [made available under section 48103] 
available to the discretionary fund under section 47115 of this 
title for each fiscal year as follows:
          [(A) at least 5 percent for grants for reliever 
        airports.]
          [(B) at least 12.5] (A) At least 31 percent for 
        grants for airport noise compatibility planning under 
        section 47505(a)(2) of this title and for carrying out 
        noise compatibility programs under section 47504(c)(1) 
        of this title. The Secretary may count the amount of 
        grants made for such planning and programs with funds 
        apportioned under section 47114 in that fiscal year in 
        determining whether or not such 31 percent requirement 
        is being met in that fiscal year.
          [(C) at least 1.5 percent for grants for--
                  [(i) nonprimary commercial service airports; 
                and
                  [(ii) public airports (except commercial 
                service airports) that were eligible for United 
                States Government assistance from amounts 
                apportioned under section 15(a)(3) of the 
                Airport and Airway Development Act of 1970, and 
                to which section 15(a)(3)(A)(I) or (II) of the 
                Act applied during the fiscal year that ended 
                September 30, 1981.
          [(D) at least .75 percent for integrated airport 
        system planning grants to planning agencies designated 
        by the Secretary and authorized by the laws of a State 
        or political subdivision of a State to do planning for 
        an area of the State or subdivision in which a grant 
        under this chapter is to be used.]
          [(E) at least 2.25 percent for the fiscal year ending 
        September 30, 1993, and at least 2.5 percent for each 
        of the fiscal years ending September 30, 1994, 1995, 
        and 1996,] (B) At least 4 percent for each fiscal year 
        thereafter to sponsors of current or former military 
        airports designated by the Secretary under section 
        47118(a) of this title for grants for developing 
        current and former military airports to improve the 
        capacity of the national air transportation system and 
        to sponsors of noncommercial service airports for 
        grants for operational and maintenance expenses at any 
        such airport if the amount of such grants to the 
        sponsor of the airport does not exceed $30,000 in that 
        fiscal year, if the Secretary determines that the 
        airport is adversely affected by the closure or 
        realignment of a military base, and if the sponsor of 
        the airport certifies that the airport would otherwise 
        close if the airport does not receive the grant.
  (2) A grant from the amount apportioned under section 
47114(e) of this title may not be included as part of the 1.5 
percent required to be used for grants under paragraph (1)(C) 
of this subsection.
  (3) If the Secretary decides that an amount required to be 
used for grants under paragraph (1) of this subsection cannot 
be used for a fiscal year because there are insufficient 
qualified grant applications, the amount the Secretary 
determines cannot be used is available during the fiscal year 
for grants for other airports or for other purposes for which 
amounts are authorized for grants under section 48103 of this 
title.

Sec. 47118. Designating current and former military airports

  (a) General Requirements.--The Secretary of Transportation 
shall designate [not more than 15] current or former military 
airports for which grants may be made under section 
[47117(e)(1)(E)] 47117(e)(1)(B) of this title. The maximum 
number of airports which may be designated by the Secretary 
under this section at any time is 10. The Secretary may only 
designate an airport for such grants (other than an airport 
designated for such grants on or before the date of the 
enactment of this sentence) if the Secretary finds that grants 
under such section for projects at such airport would [reduce 
delays at an airport with more than 20,000 hours of annual 
delays in commercial passenger aircraft takeoffs and landings] 
enhance airport and air traffic control system capacity in 
major metropolitan areas and reduce current or projected flight 
delays.
  [(b) Survey.--Not later than September 30, 1991, the 
Secretary shall complete a survey of current and former 
military airports to identify which airports have the greatest 
potential to improve the capacity of the national air 
transportation system. The survey shall identify the capital 
development needs of those airports to make them part of the 
system and which of those qualify for grants under section 
47104 of this title.
  [(c) Considerations.--In carrying out this section, the 
Secretary shall consider only current or former military 
airports that, when at least partly converted to civilian 
commercial or reliever airports as part of the national air 
transportation system, will enhance airport and air traffic 
control system capacity in major metropolitan areas and reduce 
current and projected flight delays.]
  [(d)] (b) Grants.--Grants under section [47117(e)(1)(E)] 
47117(e)(1)(B) of this title may be made for an airport 
designated under subsection (a) of this section for the 5 
fiscal years following the designation.
  [(e)] (c) Terminal Building Facilities.--Notwithstanding 
section 47109(c) of this title, not more than $5,000,000 for 
each airport from amounts the Secretary distributes under 
section 47115 of this title for a fiscal year is available to 
the sponsor of a current or former military airport the 
Secretary designates under this section to construct, improve, 
or repair a terminal building facility, including terminal 
gates used for revenue passengers getting on or off aircraft. A 
gate constructed, improved, or repaired under this subsection--
          (1) may not be leased for more than 10 years; and
          (2) is not subject to majority in interest clauses.
  [(f)] (d) Parking Lots, Fuel Farms, and Utilities.--Not more 
than a total of $4,000,000 for each airport from amounts the 
Secretary distributes under section 47115 of this title [for 
the fiscal years ending September 30, 1993-1996,] for fiscal 
years beginning after September 30, 1992, is available to the 
sponsor of a current or former military airport the Secretary 
designates under this section to construct, improve, or repair 
airport surface parking lots, fuel farms, and utilities.
          * * * * * * *

Sec. 47128. State block grant [pilot] program

  (a) General Requirements.--The Secretary of Transportation 
shall prescribe regulations to carry out a State block grant 
[pilot] program. The regulations shall provide that the 
Secretary may designate not more than [7] 10 qualified States 
to assume administrative responsibility for all airport grant 
amounts available under this subchapter, except for amounts 
designated for use at primary airports.
  (b) Applications and Selection.--[(1)] A State wishing to 
participate in the program must submit an application to the 
Secretary. The Secretary shall select a State on the basis of 
its application only after--
          [(A)] (1) deciding the State has an organization 
        capable of effectively administering a block grant made 
        under this section;
          [(B)] (2) deciding the State uses a satisfactory 
        airport system planning process;
          [(C)] (3) deciding the State uses a programming 
        process acceptable to the Secretary;
          [(D)] (4) finding that the State has agreed to comply 
        with United States Government standard requirements for 
        administering the block grant; and
          [(E)] (5) finding that the State has agreed to 
        provide the Secretary with program information the 
        Secretary requires.
  [(2) For the fiscal years ending September 30, 1993-1996, the 
States selected shall include Illinois, Missouri, and North 
Carolina.]
  (c) Safety and Security Needs and Needs of System.--Before 
deciding whether a planning process is satisfactory or a 
programming process is acceptable under subsection [(b)(1)(B) 
or (C)] (b)(2) or (b)(3) of this section, the Secretary shall 
ensure that the process provides for meeting critical safety 
and security needs and that the programming process ensures 
that the needs of the national airport system will be addressed 
in deciding which projects will receive money from the 
Government. In carrying out this subsection, the Secretary 
shall permit a State to use the priority system of the State if 
such system is not inconsistent with the national priority 
system.
  [(d) Ending Effective Date and Report.--This section is 
effective only through September 30, 1996.]

Sec. 47129. Resolution of airport-air carrier disputes concerning 
                    airport fees

  (a) Authority To Request Secretary's Determination.--
          (1) * * *
          * * * * * * *
          (4) Fees imposed by privately-owned airports.--In 
        evaluating the reasonableness of a fee imposed by an 
        airport receiving an exemption under section 47132 of 
        this title, the Secretary shall consider whether the 
        airport has complied with section 47132(c)(4).
          * * * * * * *

Sec. 47132. Private ownership of airports

  (a) Submission of Applications.--If a sponsor intends to sell 
an airport or lease an airport for a long term to a person 
(other than a public agency), the sponsor and purchaser or 
lessee may apply to the Secretary of Transportation for 
exemptions under this section.
  (b) Approval of Applications.--The Secretary may approve, 
with respect to not more than 6 airports, applications 
submitted under subsection (a) granting exemptions from the 
following provisions:
          (1) Use of revenues.--
                  (A) In general.--The Secretary may grant an 
                exemption to a sponsor from the provisions of 
                sections 44706(d) and 47107(b) of this title 
                (and any other law, regulation, or grant 
                assurance) to the extent necessary to permit 
                the sponsor to recover from the sale or lease 
                of the airport such amount as may be approved--
                          (i) by at least 60 percent of the air 
                        carriers serving the airport; and
                          (ii) by the air carrier or air 
                        carriers whose aircraft landing at the 
                        airport during the preceding calendar 
                        year had a total landed weight during 
                        the preceding calendar year of at least 
                        60 percent of the total landed weight 
                        of all aircraft landing at the airport 
                        during such year.
                  (B) Landed weight defined.--In this 
                paragraph, the term ``landed weight'' means the 
                weight of aircraft transporting passengers or 
                cargo, or both, in intrastate, interstate, and 
                foreign air transportation, as the Secretary 
                determines under regulations the Secretary 
                prescribes.
          (2) Repayment requirements.--The Secretary may grant 
        an exemption to a sponsor from the provisions of 
        sections 47107 and 47152 of this title (and any other 
        law, regulation, or grant assurance) to the extent 
        necessary to waive any obligation of the sponsor to 
        repay to the Federal Government any grants, or to 
        return to the Federal Government any property, received 
        by the airport under this title, the Airport and Airway 
        Improvement Act of 1982, or any other law.
          (3) Compensation from airport operations.--The 
        Secretary may grant an exemption to a purchaser or 
        lessee from the provisions of sections 44706(d) and 
        47107(b) of this title (and any other law, regulation, 
        or grant assurance) to the extent necessary to permit 
        the purchaser or lessee to earn compensation from the 
        operations of the airport.
  (c) Terms and Conditions.--The Secretary may approve an 
application under subsection (b) only if the Secretary finds 
that the sale or lease agreement includes provisions 
satisfactory to the Secretary to ensure the following:
          (1) The airport will continue to be available for 
        public use on reasonable terms and conditions and 
        without unjust discrimination.
          (2) The operation of the airport will not be 
        interrupted in the event that the purchaser or lessee 
        becomes insolvent or seeks or becomes subject to any 
        State or Federal bankruptcy, reorganization, 
        insolvency, liquidation, or dissolution proceeding or 
        any petition or similar law seeking the dissolution or 
        reorganization of the purchaser or lessee or the 
        appointment of a receiver, trustee, custodian, or 
        liquidator for the purchaser or lessee or a substantial 
        part of the purchaser or lessee's property, assets, or 
        business.
          (3) The purchaser or lessee will maintain and improve 
        the facilities of the airport and will submit to the 
        Secretary a plan for carrying out such maintenance and 
        improvements.
          (4) Every fee of the airport imposed on an air 
        carrier on the day before the date of the sale or lease 
        of the airport will not increase faster than the rate 
        of inflation unless a higher amount is approved--
                  (A) by at least 60 percent of the air 
                carriers serving the airport; and
                  (B) by the air carrier or air carriers whose 
                aircraft landing at the airport during the 
                preceding calendar year had a total landed 
                weight during the preceding calendar year of at 
                least 60 percent of the total landed weight of 
                all aircraft landing at the airport during such 
                year.
          (5) Safety and security at the airport will be 
        maintained at the highest possible levels.
          (6) The adverse effects of noise from operations at 
        the airport will be mitigated to the same extent as at 
        a public airport.
          (7) Any adverse effects on the environment from 
        airport operations will be mitigated to the same extent 
        as at a public airport.
          (8) Any collective bargaining agreement that covers 
        employees of the airport and is in effect on the date 
        of the sale or lease of the airport will not be 
        abrogated by the sale or lease.
  (d) Participation of Certain Airports.--If the Secretary 
approves under subsection (b) applications with respect to 6 
airports, at least one of the airports must be an airport that 
is not a commercial service airport.
  (e) Passenger Facility Fees; Apportionments; Service 
Charges.--Notwithstanding that the sponsor of an airport 
receiving an exemption under subsection (b) is not a public 
agency, the sponsor shall not be prohibited from--
          (1) imposing a passenger facility fee under section 
        40117 of this title;
          (2) receiving apportionments under section 47114 of 
        this title; or
          (3) collecting reasonable rental charges, landing 
        fees, and other service charges from aircraft operators 
        under section 40116(e)(2) of this title.
  (f) Effectiveness of Exemptions.--An exemption granted under 
subsection (b) shall continue in effect only so long as the 
facilities sold or leased continue to be used for airport 
purposes.
  (g) Revocation of Exemptions.--The Secretary may revoke an 
exemption issued to a purchaser or lessee of an airport under 
subsection (b)(3) if, after providing the purchaser or lessee 
with notice and an opportunity to be heard, the Secretary 
determines that the purchaser or lessee has knowingly violated 
any of the terms specified in subsection (c) for the sale or 
lease of the airport.
  (h) Nonapplication of Provisions to Airports Owned by Public 
Agencies.--The provisions of this section requiring the 
approval of air carriers in determinations concerning the use 
of revenues, and imposition of fees, at an airport shall not be 
extended so as to apply to any airport owned by a public 
agency.
          * * * * * * *

                           CHAPTER 475--NOISE

          * * * * * * *

                     SUBCHAPTER I--NOISE ABATEMENT

          * * * * * * *

Sec. 47505. Airport noise compatibility planning grants

  (a) * * *
          * * * * * * *
  (b) Grants to Non-Airport Sponsors.--
          (1) Authority.--The Secretary may make a grant under 
        this subsection to a State or unit of local government 
        that is not the owner or operator of the airport for 
        preparation of an airport land use compatibility plan 
        or implementation of an airport land use compatibility 
        project.
          (2) Planning authority.--In order to be eligible to 
        receive a grant under this subsection for preparation 
        of an airport land use compatibility plan, the State or 
        unit of local government must have authority to plan 
        and adopt land use control measures, including zoning, 
        in the planning area.
          (3) Coordination of planning activities.--
                  (A) Consistency with other planning.--An 
                airport land use compatibility plan prepared by 
                a State or unit of local government under this 
                subsection may not duplicate or be inconsistent 
                with an airport noise compatibility program 
                prepared by an airport operator under this 
                chapter or with other planning carried out by 
                the airport operator.
                  (B) Consultation with airport owners and 
                operators.--A State or unit of local government 
                receiving a grant under this subsection for 
                preparation of an airport land use 
                compatibility plan shall consult with the owner 
                or operator of the airport for which the plan 
                is being prepared regarding any recommended 
                airport land use compatibility measure 
                identified in the plan and any aviation data on 
                which such recommendation is made.
          (4) Approval of airport owner or operator required.--
        The Secretary may make a grant to a State or unit of 
        local government under this subsection for preparation 
        of an airport land use compatibility plan or 
        implementation of an airport land use compatibility 
        project only after receiving the approval of the owner 
        or operator of the airport for which the plan or 
        project is being prepared or implemented. Such approval 
        shall be based on whether the plan or program, 
        including the use of any noise exposure contours on 
        which the plan or project is based, has been 
        coordinated with the airport and is consistent with the 
        airport's operations and planning.
          (5) Written assurances.--The Secretary may make a 
        grant to a State or unit of local government under this 
        subsection only after receiving from the State or unit 
        of local government such written assurances as the 
        Secretary determines necessary to achieve the purposes 
        of this subsection.
          (6) Guidelines.--The Secretary may establish 
        guidelines in carrying out this subsection.
          (7) Definitions.--In this subsection, the following 
        definitions apply:
                  (A) Airport compatible land use.--The term 
                ``airport compatible land use'' means any land 
                use that is usually compatible with--
                          (i) the noise levels associated with 
                        an airport, as established under this 
                        chapter;
                          (ii) airport design standards issued 
                        by the Administrator; and
                          (iii) regulations issued to carry out 
                        section 44718 of this title.
                  (B) Airport land use compatibility plan.--The 
                term ``airport land use compatibility plan'' 
                means the product of a process to determine the 
                extent, type, nature, location, and timing of 
                measures to improve the compatibility of land 
                use with the existing forecast level of 
                aviation activity at an airport.
                  (C) Airport land use compatibility project.--
                The term ``airport land use compatibility 
                project'' means a project that is contained in 
                an airport land use compatibility plan and 
                determined by the Administrator to enhance 
                airport compatible land use.
  [(b)] (c) Availability of Amounts and Government's Share of 
Costs.--A grant under subsection (a) or (b) of this section may 
be made from amounts available under section 48103 of this 
title. The United States Government's share of the grant is the 
percent for which a project for airport development at an 
airport would be eligible under section 47109 (a) and (b) of 
this title.
          * * * * * * *

                           PART C--FINANCING

       CHAPTER 481--AIRPORT AND AIRWAY TRUST FUND AUTHORIZATIONS

Sec.
[48101.  Air navigation facilities.]
48101.  Air navigation facilities and equipment.
     * * * * * * *
[48104.  Certain direct costs and joint air navigation services.]
48104.  Operations and maintenance.
     * * * * * * *

[Sec. 48101. Air navigation facilities]

Sec. 48101. Air navigation facilities and equipment

  (a) General Authorization of Appropriations.--Not more than a 
total of the following amounts may be appropriated to the 
Secretary of Transportation out of the Airport and Airway Trust 
Fund established under section 9502 of the Internal Revenue 
Code of 1986 (26 U.S.C. 9502) to acquire, establish, and 
improve air navigation facilities under section 44502(a)(1)(A) 
of this title:
          [(1) For the fiscal years ending September 30, 1991-
        1993, $8,200,000,000.
          [(2) For the fiscal years ending September 30, 1991-
        1994, $10,724,000,000.
          [(3) For the fiscal years ending September 30, 1991-
        1995, $13,394,000,000.
          [(4) For the fiscal years ending September 30, 1991-
        1996, $16,129,000,000.]
          (1) $2,068,000,000 for fiscal year 1997.
          (2) $2,129,000,000 for fiscal year 1998.
          (3) $2,191,000,000 for fiscal year 1999.
          * * * * * * *

Sec. 48103. Airport planning and development and noise compatibility 
                    planning and programs

  The total amounts which shall be available after September 
30, [1981] 1996, to the Secretary of Transportation out of the 
Airport and Airway Trust Fund established under section 9502 of 
the Internal Revenue Code of 1986 (26 U.S.C. 9502) to make 
grants for airport planning and airport development under 
section 47104 of this title, airport noise compatibility 
planning under section 47505(a)(2) of this title, and carrying 
out noise compatibility programs under section 47504(c) of this 
title shall be [$17,583,500,000 for fiscal years ending before 
October 1, 1994, $19,744,500,000 for fiscal years ending before 
October 1, 1995, and $21,958,500,000 for fiscal years ending 
before October 1, 1996.] $2,280,000,000 for fiscal years ending 
before October 1, 1997, $4,627,000,000 for fiscal years ending 
before October 1, 1998, and $7,039,000,000 for fiscal years 
ending before October 1, 1999.

[Sec. 48104. Certain direct costs and joint air navigation services]

Sec. 48104. Operations and maintenance

  (a) * * *
          * * * * * * *
  (c) Limitation for Fiscal Years 1994-[1996]1999.--The amount 
appropriated from the Trust Fund for the purposes of paragraphs 
(1) and (2) of subsection (a) for each of fiscal years [1994, 
1995, and 1996] 1994 through 1999 may not exceed the lesser 
of--
          (1) 50 percent of the amount of funds made available 
        under sections 48101-48103 of this title for such 
        fiscal year; or
          (2)(A) 70 percent of the amount of funds made 
        available under sections 106(k) and 48101-48103 of this 
        title for such fiscal year; less
          (B) the amount of funds made available under sections 
        48101-48103 of this title for such fiscal year.
          * * * * * * *

Sec. 48108. Availability and uses of amounts

  (a) * * *
          * * * * * * *
  (c) Limitation on Obligating or Expending Amounts.--In a 
fiscal year beginning after September 30, [1996] 1999, the 
Secretary of Transportation may obligate or expend an amount 
appropriated out of the Fund under section 48104 of this title 
only if a law expressly amends section 48104.
          * * * * * * *
                              ----------                              


              METROPOLITAN WASHINGTON AIRPORTS ACT OF 1986

          * * * * * * *

SEC. 6005. LEASE OF METROPOLITAN WASHINGTON AIRPORTS.

    (a) * * *
          * * * * * * *
    (c) Minimum Terms and Conditions.--The Airports Authority 
shall agree, at a minimum, to the following conditions and 
requirements in the lease:
          (1) * * *
          (2) Airport purposes.--The real property constituting 
        the Metropolitan Washington Airports shall, during the 
        period of the lease, be used only for airport purposes. 
        For the purposes of this paragraph, the term ``airport 
        purposes'' means a use of property interests (other 
        than a sale) for aviation business or activities, or 
        for activities necessary or appropriate to serve 
        passengers or cargo in air commerce, or for nonprofit, 
        public use facilities which are not inconsistent with 
        the needs of aviation. If the Secretary determines that 
        any portion of the real property leased to the Airports 
        Authority pursuant to this Act is used for other than 
        airport purposes, the Secretary shall (A) direct that 
        appropriate measures be taken by the Airports Authority 
        to bring the use of such portion of real property in 
        conformity with airport purposes, and (B) retake 
        possession of such portion of real property if the 
        Airports Authority fails to bring the use of such 
        portion into a conforming use within a reasonable 
        period of time, as determined by the Secretary.
          * * * * * * *

SEC. 6007. AIRPORTS AUTHORITY.

  (a) * * *
          * * * * * * *
  (e) Board of Directors.--
          (1) Appointment.--The Airports Authority shall be 
        governed by a board of directors of [11] 15 members, as 
        follows:
                  (A) * * *
          * * * * * * *
                  (D) [one member] five members shall be 
                appointed by the President with the advice and 
                consent of the Senate.
        The Chairman shall be appointed from among the members 
        by majority vote of the members and shall serve until 
        replaced by majority vote of the members.
          (2) Restrictions.--Members shall (A) not hold 
        elective or appointive political office, (B) serve 
        without compensation other than for reasonable expenses 
        incident to board functions, and (C) reside within the 
        Washington Standard Metropolitan Statistical Area, 
        [except that the member appointed by the President 
        shall not be required to reside in that area.] except 
        that the members appointed by the President shall be 
        registered voters of States other than Maryland, 
        Virginia, or the District of Columbia.
          (3) Terms.--Members shall be appointed to the board 
        for a term of 6 years, except that of members first 
        appointed--
                  (A) by the Governor of Virginia, 2 shall be 
                appointed for 4 years and 2 shall be appointed 
                for 2 years;
                  (B) by the Mayor of the District of Columbia, 
                1 shall be appointed for 4 years and 1 shall be 
                appointed for 2 years; [and]
                  (C) by the Governor of Maryland, 1 shall be 
                appointed for 4 years[.]; and
                  (D) by the President after the date of the 
                enactment of this subparagraph, 2 shall be 
                appointed for 4 years.
        A member may serve after the expiration of that 
        member's term until a successor has taken office.
          (4) Vacancies.--A vacancy in the board of directors 
        shall be filled in the manner in which the original 
        appointment was made. Any member appointed to fill a 
        vacancy occurring before the expiration of the term for 
        which the member's predecessor was appointed shall be 
        appointed only for the remainder of such term.
          (5) Political parties of presidential appointees.--
        Not more than 3 of the members of the board appointed 
        by the President may be of the same political party.
          (6) Duties of presidential appointees.--In carrying 
        out their duties on the board, members of the board 
        appointed by the President shall ensure that adequate 
        consideration is given to the national interest.
          [(4)] (7) Removal of presidential appointees.--A 
        member of the board appointed by the President shall be 
        subject to removal by the President for cause.
          [(5)] (8) Required number of votes.--[Seven] Nine 
        votes shall be required to approve bond issues and the 
        annual budget.
  [(f) Board of Review.--
          [(1) Composition.--The board of directors shall be 
        subject to review of its actions and to requests, in 
        accordance with this subsection, by a Board of Review 
        of the Airports Authority. The Board of Review shall be 
        established by the board of directors to represent the 
        interests of users of the Metropolitan Washington 
        Airports and shall be composed of 9 members appointed 
        by the board of directors as follows:
                  [(A) 4 individuals from a list provided by 
                the Speaker of the House of Representatives.
                  [(B) 4 individuals from a list provided by 
                the President pro tempore of the Senate.
                  [(C) 1 individual chosen alternately from a 
                list provided by the Speaker of the House of 
                Representatives and from a list provided by the 
                President pro tempore of the Senate.
        In addition to the recommendations on a list provided 
        under this paragraph, the board of directors may 
        request additional recommendations.]
  (f) Federal Advisory Commission.--
          (1) Composition.--There is established a Federal 
        Advisory Commission of the Airports Authority which 
        shall represent the interests of users of the 
        Metropolitan Washington Airports and shall be composed 
        of 9 members appointed by the Secretary of 
        Transportation.
          (2) Terms, vacancies, and qualifications.--
                  (A) Terms.--Members of the [Board of Review] 
                Federal Advisory Commission appointed under 
                [paragraphs (1)(A) and (1)(B)] paragraph (1) 
                shall be appointed for terms of 6 years. 
                [Members of the Board of Review appointed under 
                paragraph (1)(C) shall be appointed for terms 
                of 2 years.] A member may serve after the 
                expiration of that member's term until a 
                successor has taken office.
                  (B) Vacancies.--A vacancy in the [Board of 
                Review] Federal Advisory Commission shall be 
                filled in the manner in which the original 
                appointment was made. Any member appointed to 
                fill a vacancy occurring before the expiration 
                of the term for which the member's predecessor 
                was appointed shall be appointed only for the 
                remainder of such term.
                  (C) Qualifications.--Members of the [Board of 
                Review] Federal Advisory Commission shall be 
                individuals who have experience in aviation 
                matters and in addressing the needs of airport 
                users and who themselves are frequent users of 
                the Metropolitan Washington Airports. A member 
                of the [Board of Review] Federal Advisory 
                Commission shall be a registered voter of a 
                State other than Maryland, Virginia, or the 
                District of Columbia.
                  (D) Effect of more than 4 vacancies.--At any 
                time that the [Board of Review] Federal 
                Advisory Commission established under this 
                subsection has more than 4 vacancies [and lists 
                have been provided for appointments to fill 
                such vacancies], the Airports Authority shall 
                have no authority to perform any of the actions 
                that are required by paragraph (4) to be 
                submitted to the [Board of Review] Federal 
                Advisory Commission.
          (3) Procedures.--The [Board of Review] Federal 
        Advisory Commission shall establish procedures for 
        conducting its business. The procedures may include 
        requirements for a quorum at meetings and for proxy 
        voting and for the selection of a Chairman. The [Board] 
        Commission shall meet at least once each year and shall 
        meet at the call of the chairman or 3 members of the 
        [Board] Commission. Any decision of the [Board of 
        Review] Federal Advisory Commission under paragraph (4) 
        or (5) shall be by a vote of 5 members of the [Board] 
        Commission.
          (4) Review procedure.--
                  [(A) Submission required.--An action of the 
                Airports Authority described in subparagraph 
                (B) shall be submitted to the Board of Review 
                at least 30 days (or at least 60 days in the 
                case of the annual budget) before it is to 
                become effective.]
                  (A) Submission required.--
                          (i) In general.--An action of the 
                        Airports Authority described in 
                        subparagraph (B) shall be submitted to 
                        the Federal Advisory Commission, the 
                        Speaker of the House of 
                        Representatives, and the President Pro 
                        Tempore of the Senate at least 60 days 
                        before the action is to become 
                        effective.
                          (ii) Urgent and compelling 
                        circumstances.--An action submitted to 
                        the Federal Advisory Commission and 
                        Congress in accordance with clause (i) 
                        may become effective before the 
                        expiration of the 60-day period 
                        referred to in clause (i) if the board 
                        of directors certifies, in writing, to 
                        the Secretary and Congress that urgent 
                        and compelling circumstances exist that 
                        significantly affect the interests of 
                        the traveling public and will not 
                        permit waiting for the expiration of 
                        such 60-day period.
          * * * * * * *
                  [(C) Recommendations.--The Board of Review 
                may make to the board of directors 
                recommendations regarding an action within 
                either (i) 30 calendar days of its submission 
                under this paragraph; or (ii) 10 calendar days 
                (excluding Saturdays, Sundays, and holidays, 
                and any day on which neither House of Congress 
                is in session because of an adjournment sine 
                die, a recess of more than 3 days, or an 
                adjournment of more than 3 days) of its 
                submission under this paragraph; whichever 
                period is longer. Such recommendations may 
                include a recommendation that the action not 
                take effect. If the Board of Review does not 
                make a recommendation in the applicable review 
                period under this subparagraph or if at any 
                time in such review period the Board of Review 
                decides that it will not make a recommendation 
                on an action, the action may take effect.]
                  (C) Recommendations.--The Federal Advisory 
                Commission may make to the board of directors 
                and Congress recommendations regarding an 
                action within 30 calendar days of its 
                submission under this paragraph. Such 
                recommendations may include a recommendation 
                that the action not take effect.
                  [(D) Effect of recommendation.--
                          [(i) Response.--An action with 
                        respect to which the Board of Review 
                        has made a recommendation in accordance 
                        with subparagraph (C) may only take 
                        effect if the board of directors adopts 
                        such recommendation or if the board of 
                        directors has evaluated and responded, 
                        in writing, to the Board of Review with 
                        respect to such recommendation and 
                        transmits such action, evaluation, and 
                        response to Congress in accordance with 
                        clause (ii) and the 60-calendar day 
                        period described in clause (ii) 
                        expires.
                          [(ii) Nonadoption of 
                        recommendation.--If the board of 
                        directors does not adopt a 
                        recommendation of the Board of Review 
                        regarding an action, the board of 
                        directors shall transmit to the Speaker 
                        of the House of Representatives and the 
                        President of the Senate a detailed 
                        description of the action, the 
                        recommendation of the Board of Review 
                        regarding the action, and the 
                        evaluation and response of the board of 
                        directors to such recommendation, and 
                        the action may not take effect until 
                        the expiration of 60 calendar days 
                        (excluding Saturdays, Sundays, and 
                        holidays, and any day on which neither 
                        House of Congress is in session because 
                        of an adjournment sine die, a recess of 
                        more than 3 days, or an adjournment of 
                        more than 3 days) beginning on the day 
                        on which the board of directors makes 
                        such transmission to the Speaker of the 
                        House of Representatives and the 
                        President of the Senate.]
                  [(E)] (D) Limitation on expenditures.--Unless 
                an annual budget for a fiscal year has taken 
                effect in accordance with this paragraph, the 
                Airports Authority may not obligate or expend 
                any money in such fiscal year, except for (i) 
                debt service on previously authorized 
                obligations, and (ii) obligations and 
                expenditures for previously authorized capital 
                expenditures and routine operating expenses.
                  (E) Expiration of authority.--
                          (i) In general.--Except as provided 
                        in clause (ii), the authority of the 
                        Airports Authority to take any of the 
                        actions described in subparagraph (B) 
                        shall expire on April 30, 1997.
                          (ii) Special rule.--If on any day 
                        after April 29, 1997, all of the 
                        members to be appointed to the board of 
                        directors by the President under 
                        subsection (e)(1)(D) are serving on the 
                        board, the authority of the board 
                        referred to in clause (i) shall be 
                        effective beginning on such day and 
                        shall expire on September 30, 1998.
          (5) Congressional disapproval procedure.--
                  (A) * * *
                  (B) Resolution defined.--For the purpose of 
                this paragraph, the term ``resolution'' means 
                only a joint resolution, relating to an action 
                of the board of directors transmitted to 
                Congress in accordance with paragraph 
                (4)[(D)(ii)], the matter after the resolving 
                clause of which is as follows: ``That the 
                Congress disapproves of the action of the board 
                of directors of the Metropolitan Washington 
                Airports Authority described as follows:        
                     .'', the blank space therein being 
                appropriately filled. Such term does not 
                include a resolution which specifies more than 
                one action.
                  (C) Referral.--A resolution with respect to a 
                board of director's action shall be referred to 
                the Committee on [Public Works and 
                Transportation] Transportation and 
                Infrastructure of the House of Representatives, 
                or the Committee on [Commerce, Science and 
                Technology] Commerce, Science, and 
                Transportation of the Senate, by the Speaker of 
                the House of Representatives or the President 
                of the Senate, as the case may be.
                  [(D) Motion to discharge.--If the committee 
                to which a resolution has been referred has not 
                reported it at the end of 20 calendar days 
                after its introduction, it is in order to move 
                to discharge the committee from further 
                consideration of that joint resolution or any 
                other resolution with respect to the board of 
                directors action which has been referred to the 
                committee.
                  [(E) Rules with respect to motion.--A motion 
                to discharge may be made only by an individual 
                favoring the resolution, is highly privileged 
                (except that it may not be made after the 
                committee has reported a resolution with 
                respect to the same action), and debate thereon 
                shall be limited to not more than 1 hour, to be 
                divided equally between those favoring and 
                those opposing the resolution. An amendment to 
                the motion is not in order, and it is not in 
                order to move to reconsider the vote by which 
                the motion is agreed to or disagreed to. 
                Motions to postpone shall be decided without 
                debate.
                  [(F) Effect of motion.--If the motion to 
                discharge is agreed to or disagreed to, the 
                motion may not be renewed, nor may another 
                motion to discharge the committee be made with 
                respect to any other resolution with respect to 
                the same action.]
                  (D) House procedure.--When the Committee of 
                the House has reported a resolution, it is in 
                order at any time on or after the third day on 
                which the report on the resolution has been 
                available to Members pursuant to clause 2(l)(6) 
                of House Rule XI, for the chairman of the 
                committee or a designee to move to proceed to 
                the consideration in the House of the 
                resolution. The motion is highly privileged, 
                and is not subject to debate or to intervening 
                motion or otherwise subject to points of order, 
                nor shall it be in order to move to reconsider 
                the vote by which the motion is agreed to or 
                not agreed to. If the motion is agreed to, the 
                resolution shall be considered in the House and 
                debatable for not to exceed 2 hours to be 
                equally divided and controlled by the chairman 
                and the ranking minority member of the 
                committee. The previous question shall be 
                considered as ordered on the resolution to 
                final passage without intervening motion. A 
                motion to reconsider the vote on passage of the 
                resolution shall not be in order.
                  [(G)] (E) Senate procedure.--
                          (i) * * *
          * * * * * * *
                  [(H)] (F) Effect of adoption of resolution by 
                other house.--If, before the passage by 1 House 
                of a joint resolution of that House, that House 
                receives from the other House a joint 
                resolution, then the following procedures shall 
                apply:
                          (i) * * *
          * * * * * * *
          [(6) Request for consideration of other matters.--The 
        Board of Review may request the Airports Authority to 
        consider and vote, or to report, on any matter related 
        to the Metropolitan Washington Airports. Upon receipt 
        of such a request the Airports Authority shall consider 
        and vote, or report, on the matter as promptly as 
        feasible.
          [(7) Participation in meetings of airports 
        authority.--Members of the Board of Review may 
        participate as nonvoting members in meetings of the 
        board of the Airports Authority.]
          [(8)] (6) Staff.--The [Board of Review] Federal 
        Advisory Commission may hire two staff persons to be 
        paid by the Airports Authority. The Airports Authority 
        shall provide such clerical and support staff as the 
        [Board] Commission may require.
          [(9)] (7) Liability.--A member of the [Board of 
        Review] Federal Advisory Commission shall not be liable 
        in connection with any claim, action, suit, or 
        proceeding arising from service on the [Board] 
        Commission.
          [(10)] (8) Conflicts of interest.--In every contract 
        or agreement to be made or entered into, or accepted by 
        or on behalf of the Airports Authority, there shall be 
        inserted an express condition that no member of a 
        [Board of Review] Federal Advisory Commission shall be 
        admitted to any share or part of such contract or 
        agreement, or to any benefit to arise thereupon.
          [(11)] (9) Removal.--A member of the [Board of 
        Review] Federal Advisory Commission shall be subject to 
        removal only for cause [by a two-thirds vote of the 
        board of directors] by the Secretary of Transportation.
          * * * * * * *
  [(h) Limitation on Authority.--If the Board of Review 
established under subsection (f) is unable to carry out its 
functions under this title by reason of a judicial order, the 
Airports Authority thereafter shall have no authority to 
perform any of the actions that are required by paragraph 
(f)(4) to be submitted to the Board of Review.]
  [(i)] (h) Review of Contracting Procedures.--The Comptroller 
General shall review contracts of the Airports Authority to 
determine whether such contracts were awarded by procedures 
which follow sound Government contracting principles and are in 
compliance with section 6005(c)(4) of this title. The 
Comptroller General shall submit periodic reports of the 
conclusions reached as a result of such review to the Committee 
on Public Works and Transportation of the House of 
Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate.
  (i) Federal Advisory Committee Act.--The Federal Advisory 
Committee Act (5 U.S.C. App.) shall not apply to the Federal 
Advisory Commission.
          * * * * * * *

SEC. 6009. RELATIONSHIP TO AND EFFECT OF OTHER LAWS.

      (a) * * *
      (b) Inapplicability of Certain Laws.--The Metropolitan 
Washington Airports and the Airports Authority shall not be 
subject to the requirements of any law solely by reason of the 
retention by the United States of fee simple title to such 
airports or by reason of the authority of the [Board of Review] 
Federal Advisory Commission under subsection 6007(f).
          * * * * * * *
  (e) Operation Limitations.--
          (1) High density rule.--[The Administrator] Except as 
        provided by section 41714 of title 49, United States 
        Code, the Administrator may not increase the number of 
        instrument flight rule takeoffs and landings authorized 
        for air carriers by the High Density Rule (14 C.F.R. 
        93.121 et seq.) at Washington National Airport on the 
        date of the enactment of this title and may not 
        decrease the number of such takeoffs and landings 
        except for reasons of safety.
          * * * * * * *

SEC. 6011. SEPARABILITY.

  [Except as provided in section 6007(h), if] If any provision 
of this title or the application thereof to any person or 
circumstance, is held invalid, the remainder of this title and 
the application of such provision to other persons or 
circumstances shall not be affected thereby.
          * * * * * * *

SEC. 6013. USE OF DULLES ACCESS HIGHWAY.

  (a) Restrictions.--The Airports Authority shall continue in 
effect and enforce paragraphs (1) and (2) of section 4.2 of the 
Metropolitan Washington Airports Regulations, as in effect on 
February 1, 1995.
  (b) Enforcement.--The district courts of the United States 
shall have jurisdiction to compel the Airports Authority and 
its officers and employees to comply with the requirements of 
this section. An action may be brought on behalf of the United 
States by the Attorney General, or by any aggrieved party.
                              ----------                              


                     INTERNAL REVENUE CODE OF 1986

          * * * * * * *

                 Subtitle D--Miscellaneous Excise Taxes

          * * * * * * *

                    CHAPTER 31--RETAIL EXCISE TAXES

          * * * * * * *

                      Subchapter B--Special Fuels

          * * * * * * *

SEC. 4041. IMPOSITION OF TAX

  (a) * * *
          * * * * * * *
  (c) Noncommercial Aviation.--
          (1) * * *
          * * * * * * *
          (5) Termination.--The taxes imposed by paragraphs (1) 
        and (2) shall apply during the period beginning on 
        September 1, 1982, and ending on December 31, 1995, and 
        during the period beginning on the date which is 30 
        days after the date of the enactment of the Federal 
        Aviation Authorization Act of 1996 and ending on 
        December 31, 1999. The termination under the preceding 
        sentence shall not apply to so much of the tax imposed 
        by paragraph (1) as does not exceed 4.3 cents per 
        gallon.
          * * * * * * *

                 CHAPTER 32--MANUFACTURERS EXCISE TAXES

          * * * * * * *

               Subchapter A--Automotive and Related Items

          * * * * * * *

                      PART III--PETROLEUM PRODUCTS

          * * * * * * *

                  Subpart A--Gasoline and Diesel Fuel

          * * * * * * *

SEC. 4081. IMPOSITION OF TAX

  (a) * * *
          * * * * * * *
  (d) Termination.--
          (1) In general.--On and after October 1, 1999, each 
        rate of tax specified in subsection (a)(2)(A) (other 
        than the tax on aviation gasoline) shall be 4.3 cents 
        per gallon.
          (2) Leaking underground storage tank trust fund 
        financing rate.--The Leaking Underground Storage Tank 
        Trust Fund financing rate under subsection (a)(2) shall 
        not apply after December 31, 1995.
          (3) Aviation gasoline.--After December 31, 1999, the 
        rate of tax specified in subsection (a)(2)(A)(i) on 
        aviation gasoline shall be 4.3 cents per gallon.
          * * * * * * *

                        Subpart B--Aviation Fuel

          * * * * * * *

SEC. 4091. IMPOSITION OF TAX

  (a) * * *
  (b) Rate of Tax.--
          (1) * * *
          * * * * * * *
          (3) Termination.--
                  [(A) On and after January 1, 1996, the rate 
                of tax specified in paragraph (1) shall be 4.3 
                cents per gallon.]
                  (A) The rate of tax specified in paragraph 
                (1) shall be 4.3 cents per gallon--
                          (i) after December 31, 1995, and 
                        before the date which is 30 days after 
                        the date of the enactment of the 
                        Federal Aviation Authorization Act of 
                        1996, and
                          (ii) after December 31, 1999.
          * * * * * * *

SEC. 4092. EXEMPTIONS

  (a) * * *
  (b) No Exemption From Certain Taxes on Fuel Used in 
Commercial Aviation.--In the case of fuel sold for use in 
commercial aviation (other than supplies for vessels or 
aircraft within the meaning of section 4221(d)(3)), subsection 
(a) shall not apply to so much of the tax imposed by section 
4091 as is attributable to--
          (1) the Leaking Underground Storage Tank Trust Fund 
        financing rate imposed by such section, and
          [(2) in the case of fuel sold after September 30, 
        1995, 4.3 cents per gallon of the rate specified in 
        section 4091(b)(1).]
          (2) 4.3 cents per gallon of the rate specified in 
        section 4091(b)(1) in the case of fuel sold--
                  (A) after September 30, 1995, and before the 
                date which is 30 days after the date of the 
                enactment of the Federal Aviation Authorization 
                Act of 1996, and
                  (B) after December 31, 1999.
For purposes of the preceding sentence, the term ``commercial 
aviation'' means any use of an aircraft other than in 
noncommercial aviation (as defined in section 4041(c)(4)).
          * * * * * * *

                  CHAPTER 33--FACILITIES AND SERVICES

          * * * * * * *

                  Subchapter C--Transportation By Air

          * * * * * * *

                            PART I--PERSONS

          * * * * * * *

SEC. 4261. IMPOSITION OF TAX

  (a) * * *
          * * * * * * *
  (g) Termination.--The taxes imposed by this section shall 
apply with respect to transportation beginning after August 31, 
1982, and before [January 1, 1996] January 1, 1996, and to 
transportation beginning on or after the date which is 30 days 
after the date of the enactment of the Federal Aviation 
Authorization Act of 1996 and before January 1, 2000.
          * * * * * * *

                           PART II--PROPERTY

          * * * * * * *

SEC. 4271. IMPOSITION OF TAX

  (a) * * *
          * * * * * * *
  (d) Termination.--The tax imposed by subsection (a) shall 
apply with respect to transportation beginning after August 31, 
1982, and before [January 1, 1996] January 1, 1996, and to 
transportation beginning on or after the date which is 30 days 
after the date of the enactment of the Federal Aviation 
Authorization Act of 1996 and before January 1, 2000.
          * * * * * * *

 PART III--SPECIAL PROVISIONS APPLICABLE TO TAXES ON TRANSPORTATION BY 
                                  AIR

        Sec. 4281  Small aircraft on nonestablished lines.
     * * * * * * *
        Sec. 4283.  Reduction in aviation ticket tax in certain cases.
     * * * * * * *

SEC. 4283. REDUCTION IN AVIATION TICKET TAX IN CERTAIN CASES.

  (a) General Rule.--For each fiscal year, the Secretary 
shall--
          (1) determine whether such fiscal year was a funding 
        shortfall year, and
          (2) in such a case, prescribe a tax rate which shall 
        apply under section 4261(a) to amounts paid during the 
        first calendar year beginning after the close of such 
        fiscal year.
  (b) Funding Shortfall Year.--For purposes of this section--
          (1) In general.--The term ``funding shortfall year'' 
        means any fiscal year for which there is a funding 
        shortfall.
          (2) Funding shortfall.--The term ``funding 
        shortfall'' means, with respect to any fiscal year, the 
        amount by which--
                  (A) the aggregate amounts authorized to be 
                obligated under such section 48103 for the 
                fiscal year, exceeds
                  (B) the aggregate amounts available for 
                obligation under section 48103 of title 49, 
                United States Code for the fiscal year.
          (3) Special rules.--
                  (A) Treatment of prior year amounts.--For 
                purposes of paragraph (2)(A), an amount shall 
                be treated as authorized only for the first 
                fiscal year for which it is authorized.
                  (B) Treatment of sequestered amounts.--The 
                determination under paragraph (2) shall not 
                take into account the sequestration of any 
                amount described therein pursuant to an order 
                under part C of title II of the Balanced Budget 
                and Emergency Deficit Control Act of 1985 (or 
                any successor law).
                  (C) Treatment of rescissions.--The 
                determination under paragraph (2)(A) shall not 
                take into account the rescission of any amount 
                authorized to obligated under section 48103 of 
                title 49, United States Code for a fiscal year.
  (c) Determination of Tax Rate.--The rate prescribed by the 
Secretary under subsection (a) which shall apply in lieu of the 
rate otherwise applicable under section 4261(a) for any 
calendar year shall be the rate which the Secretary estimates 
will result in a reduction in tax revenues equal to the funding 
shortfall for the most recent fiscal year ending before such 
calendar year.
          * * * * * * *

                Subtitle F--Procedure and Administration

          * * * * * * *

              CHAPTER 65--ABATEMENTS, CREDITS, AND REFUNDS

          * * * * * * *

               Subchapter B--Rules of Special Application

          * * * * * * *

SEC. 6421. GASOLINE USED FOR CERTAIN NONHIGHWAY PURPOSES, USED BY LOCAL 
                    TRANSIT SYSTEMS, OR SOLD FOR CERTAIN EXEMPT 
                    PURPOSES

  (a) * * *
          * * * * * * *
  (f) Exempt sales; other payments or refunds available.--
          (1) * * *
          * * * * * * *
          (2) Gasoline used in aviation.--This section shall 
        not apply in respect of gasoline which is used as a 
        fuel in an aircraft--
                  (A) in noncommercial aviation (as defined in 
                section 4041(c)(4)), or
                  [(B) in aviation which is not noncommercial 
                aviation (as so defined) with respect to the 
                tax imposed by section 4081 at the Leaking 
                Underground Storage Tank Trust Fund financing 
                rate and, in the case of fuel purchased after 
                September 30, 1995, at so much of the rate 
                specified in section 4081(a)(2)(A) as does not 
                exceed 4.3 cents per gallon.]
                  (B) in aviation which is not noncommercial 
                aviation (as so defined) with respect to the 
                tax imposed by section 4081 at--
                          (i) the Leaking Underground Storage 
                        Tank Trust Fund financing rate, and
                          (ii) so much of the rate specified in 
                        section 4081(a)(2)(A) as does not 
                        exceed 4.3 cents per gallon in the case 
                        of fuel purchased--
                                  (I) after September 30, 1995, 
                                and before the date which is 30 
                                days after the date of the 
                                enactment of the Federal 
                                Aviation Authorization Act of 
                                1996, and
                                  (II) after December 31, 1999.

SEC. 6427. FUELS NOT USED FOR TAXABLE PURPOSES

  (a) * * *
          * * * * * * *
  (l) Nontaxable Uses of Diesel Fuel and Aviation Fuel.--
          (1) * * *
          * * * * * * *
          (4) No refund of certain taxes on fuel used in 
        commercial aviation.--In the case of fuel used in 
        commercial aviation (as defined in section 4092(b)) 
        (other than supplies for vessels or aircraft within the 
        meaning of section 4221(d)(3)), paragraph (1) shall not 
        apply to so much of the tax imposed by section 4091 as 
        is attributable to--
                  (A) the Leaking Underground Storage Tank 
                Trust Fund financing rate imposed by such 
                section, and
                  [(B) in the case of fuel purchased after 
                September 30, 1995, as so much of the rate of 
                tax specified in section 4091(b)(1) as does not 
                exceed 4.3 cents per gallon.]
                  (B) so much of the rate specified in section 
                4091(b)(1) as does not exceed 4.3 cents per 
                gallon in the case of fuel purchased--
                          (i) after September 30, 1995, and 
                        before the date which is 30 days after 
                        the date of the enactment of the 
                        Federal Aviation Authorization Act of 
                        1996, and
                          (ii) after December 31, 1999.
          * * * * * * *

                      Subtitle I--Trust Fund Code

          * * * * * * *

                      CHAPTER 98--TRUST FUND CODE

          * * * * * * *

               Subchapter A--Establishment of Trust Funds

          * * * * * * *

SEC. 9502. AIRPORT AND AIRWAY TRUST FUND

  (a) * * *
  (b) Transfer to Airport and Airway Trust Fund of amounts 
equivalent to certain taxes.--There is hereby appropriated to 
the Airport and Airway Trust Fund--
          (1) amounts equivalent to the taxes received in the 
        Treasury after August 31, 1982, and before [January 1, 
        1996] January 1, 2000, under subsections (c) and (e) of 
        section 4041 (taxes on aviation fuel) and under 
        sections 4261 and 4271 (taxes on transportation by 
        air);
          (2) amounts determined by the Secretary of the 
        Treasury to be equivalent to the taxes received in the 
        Treasury after August 31, 1982, and before [January 1, 
        1996] January 1, 2000, under section 4081 (to the 
        extent of 14 cents per gallon), with respect to 
        gasoline used in aircraft;
          (3) amounts determined by the Secretary to be 
        equivalent to the taxes received in the Treasury before 
        [January 1, 1996] January 1, 2000, under section 4091 
        (to the extent attributable to the Airport and Airway 
        Trust Fund financing rate); and
          (4) amounts determined by the Secretary of the 
        Treasury to be equivalent to the taxes received in the 
        Treasury after August 31, 1982, and before [January 1, 
        1996] January 1, 2000, under section 4071, with respect 
        to tires of the types used on aircraft.
          * * * * * * *
  (d) Expenditures from Airport and Airway Trust Fund.--
          (1) Airport and airway program.--Amounts in the 
        Airport and Airway Trust Fund shall be available, as 
        provided by appropriation Acts, for making expenditures 
        before [October 1, 1996] October 1, 1999, to meet those 
        obligations of the United States--
                  (A) incurred under title I of the Airport and 
                Airway Development Act of 1970 or of the 
                Airport and Airway Development Act Amendments 
                of 1976 or of the Aviation Safety and Noise 
                Abatement Act of 1979 or under the Fiscal Year 
                1981 Airport Development Authorization Act or 
                the provisions of the Airport and Airway 
                Improvement Act of 1982 or the Airport and 
                Airway Safety and Capacity Expansion Act of 
                1987 or the Airport and Airway Safety, 
                Capacity, Noise Improvement, and Intermodal 
                Transportation Act of 1992 or the Federal 
                Aviation Administration Research, Engineering, 
                and Development Authorization Act of 1990 or 
                the Aviation Safety and Capacity Expansion Act 
                of 1990 or the Airport Improvement Program 
                Temporary Extension Act of 1994 or the Federal 
                Aviation Administration Authorization Act of 
                1994 or the Federal Aviation Authorization Act 
                of 1996;
          * * * * * * *
          (5) Transfers from airport and airway trust fund on 
        account of refunds of taxes on transportation by air.--
        The Secretary of the Treasury shall pay from time to 
        time from the Airport and Airway Trust Fund into the 
        general fund of the Treasury amounts equivalent to the 
        amounts paid after December 31, 1995, under section 
        6402 (relating to authority to make credits or refunds) 
        or section 6415 (relating to credits or refunds to 
        persons who collected certain taxes) in respect of 
        taxes under sections 4261 and 4271.
          * * * * * * *
  (f) Definition of Airport and Airway Trust Fund Financing 
Rate.--For purposes of this section--
          (1) * * *
          * * * * * * *
          [(3) Termination.--Notwithstanding the preceding 
        provisions of this subsection, the Airport and Airway 
        Trust Fund financing rate is zero with respect to tax 
        received after December 31, 1995.]
          (3) Termination.--Notwithstanding the preceding 
        provisions of this subsection, the Airport and Airway 
        Trust Fund financing rate shall be zero with respect 
        to--
                  (A) taxes imposed after December 31, 1995, 
                and before the date which is 30 days after the 
                date of the enactment of the Federal Aviation 
                Authorization Act of 1996, and
                  (B) taxes received after December 31, 1999.
          * * * * * * *