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106th Congress                                            Rept. 106-167
                        HOUSE OF REPRESENTATIVES
 1st Session                                                     Part 1

======================================================================



 
        AVIATION INVESTMENT AND REFORM ACT FOR THE 21ST CENTURY

                                _______
                                

                  May 28, 1999.--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. 1000]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Transportation and Infrastructure, to whom 
was referred the bill (H.R. 1000) 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 ``Aviation Investment 
and Reform Act for the 21st Century''.
  (b) Table of Contents.--

Sec. 1. Short title; table of contents.
Sec. 2. Amendments to title 49, United States Code.
Sec. 3. Applicability.
Sec. 4. Administrator defined.

                TITLE I--AIRPORT AND AIRWAY IMPROVEMENTS

                          Subtitle A--Funding

Sec. 101. Airport improvement program.
Sec. 102. Airway facilities improvement program.
Sec. 103. FAA operations.
Sec. 104. AIP formula changes.
Sec. 105. Passenger facility fees.
Sec. 106. Budget submission.

                    Subtitle B--Airport Development

Sec. 121. Runway incursion prevention devices; emergency call boxes.
Sec. 122. Windshear detection equipment.
Sec. 123. Enhanced vision technologies.
Sec. 124. Pavement maintenance.
Sec. 125. Competition plans.
Sec. 126. Matching share.
Sec. 127. Letters of intent.
Sec. 128. Grants from small airport fund.
Sec. 129. Discretionary use of unused apportionments.
Sec. 130. Designating current and former military airports.
Sec. 131. Contract tower cost-sharing.
Sec. 132. Innovative use of airport grant funds.
Sec. 133. Aviation security program.
Sec. 134. Inherently low-emission airport vehicle pilot program.
Sec. 135. Technical amendments.
Sec. 136. Conveyances of airport property for public airports.

                       Subtitle C--Miscellaneous

Sec. 151. Treatment of certain facilities as airport-related projects.
Sec. 152. Terminal development costs.
Sec. 153. General facilities authority.
Sec. 154. Denial of airport access to certain air carriers.
Sec. 155. Construction of runways.
Sec. 156. Use of recycled materials.

                 TITLE II--AIRLINE SERVICE IMPROVEMENTS

    Subtitle A--Service to Airports Not Receiving Sufficient Service

Sec. 201. Access to high density airports.
Sec. 202. Funding for air carrier service to airports not receiving 
sufficient service.
Sec. 203. Waiver of local contribution.
Sec. 204. Policy for air service to rural areas.
Sec. 205. Determination of distance from hub airport.

           Subtitle B--Regional Air Service Incentive Program

Sec. 211. Establishment of regional air service incentive program.

                    TITLE III--FAA MANAGEMENT REFORM

Sec. 301. Air traffic control system defined.
Sec. 302. Air Traffic Control Oversight Board.
Sec. 303. Chief Operating Officer.
Sec. 304. Federal Aviation Management Advisory Council.
Sec. 305. Environmental streamlining.
Sec. 306. Clarification of regulatory approval process.
Sec. 307. Independent study of FAA costs and allocations.

                      TITLE IV--FAMILY ASSISTANCE

Sec. 401. Responsibilities of National Transportation Safety Board.
Sec. 402. Air carrier plans.
Sec. 403. Foreign air carrier plans.
Sec. 404. Applicability of Death on the High Seas Act.

                            TITLE V--SAFETY

Sec. 501. Cargo collision avoidance systems deadlines.
Sec. 502. Records of employment of pilot applicants.
Sec. 503. Whistleblower protection for FAA employees.
Sec. 504. Safety risk mitigation programs.
Sec. 505. Flight operations quality assurance rules.
Sec. 506. Small airport certification.
Sec. 507. Life-limited aircraft parts.
Sec. 508. FAA may fine unruly passengers.
Sec. 509. Report on air transportation oversight system.
Sec. 510. Airplane emergency locators.

                   TITLE VI--WHISTLEBLOWER PROTECTION

Sec. 601. Protection of employees providing air safety information.
Sec. 602. Civil penalty.

                  TITLE VII--MISCELLANEOUS PROVISIONS

Sec. 701. Duties and powers of Administrator.
Sec. 702. Public aircraft.
Sec. 703. Prohibition on release of offeror proposals.
Sec. 704. Multiyear procurement contracts.
Sec. 705. Federal Aviation Administration personnel management system.
Sec. 706. Nondiscrimination in airline travel.
Sec. 707. Joint venture agreement.
Sec. 708. Extension of war risk insurance program.
Sec. 709. General facilities and personnel authority.
Sec. 710. Implementation of article 83 bis of the Chicago Convention.
Sec. 711. Public availability of airmen records.
Sec. 712. Appeals of emergency revocations of certificates.
Sec. 713. Government and industry consortia.
Sec. 714. Passenger manifest.
Sec. 715. Cost recovery for foreign aviation services.
Sec. 716. Technical corrections to civil penalty provisions.
Sec. 717. Waiver under Airport Noise and Capacity Act.
Sec. 718. Metropolitan Washington Airport Authority.
Sec. 719. Acquisition management system.
Sec. 720. Centennial of Flight Commission.
Sec. 721. Aircraft situational display data.
Sec. 722. Elimination of backlog of equal employment opportunity 
complaints.
Sec. 723. Newport News, Virginia.
Sec. 724. Grant of easement, Los Angeles, California.
Sec. 725. Regulation of Alaska guide pilots.
Sec. 726. Aircraft repair and maintenance advisory panel.
Sec. 727. Operations of air taxi industry.
Sec. 728. Sense of Congress concerning completion of comprehensive 
national airspace redesign.
Sec. 729. Compliance with requirements.
Sec. 730. Aircraft noise levels at airports.
Sec. 731. FAA consideration of certain State proposals.

             TITLE VIII--NATIONAL PARKS AIR TOUR MANAGEMENT

Sec. 801. Short title.
Sec. 802. Findings.
Sec. 803. Air tour management plans for national parks.
Sec. 804. Advisory group.
Sec. 805. Reports.
Sec. 806. Exemptions.
Sec. 807. Definitions.

                      TITLE IX--TRUTH IN BUDGETING

Sec. 901. Short title.
Sec. 902. Budgetary treatment of Airport and Airway Trust Fund.
Sec. 903. Safeguards against deficit spending out of Airport and Airway 
Trust Fund.
Sec. 904. Applicability.

            TITLE X--ADJUSTMENT OF TRUST FUND AUTHORIZATIONS

Sec. 1001. Adjustment of trust fund authorizations.
Sec. 1002. Budget estimates.
Sec. 1003. Sense of Congress on fully offsetting increased aviation 
spending.

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

  Except as otherwise specifically provided, whenever in 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.

  Except as otherwise specifically provided, this Act and the 
amendments made by this Act shall apply only to fiscal years beginning 
after September 30, 1999.

SEC. 4. ADMINISTRATOR DEFINED.

  In this Act, the term ``Administrator'' means the Administrator of 
the Federal Aviation Administration.

                TITLE I--AIRPORT AND AIRWAY IMPROVEMENTS

                          Subtitle A--Funding

SEC. 101. AIRPORT IMPROVEMENT PROGRAM.

  (a) Authorization of Appropriations.--Section 48103 is amended by 
striking ``shall be'' the last place it appears and all that follows 
through the period at the end and inserting the following: ``shall be--
          ``(1) $2,410,000,000 for fiscal year 1999;
          ``(2) $2,475,000,000 for fiscal year 2000;
          ``(3) $4,000,000,000 for fiscal year 2001;
          ``(4) $4,100,000,000 for fiscal year 2002;
          ``(5) $4,250,000,000 for fiscal year 2003; and
          ``(6) $4,350,000,000 for fiscal year 2004.''.
  (b) Obligational Authority.--Section 47104(c) is amended by striking 
``After'' and all that follows through ``1999,'' and inserting ``After 
September 30, 2004,''.

SEC. 102. AIRWAY FACILITIES IMPROVEMENT PROGRAM.

  (a) General Authorization and Appropriations.--Effective September 
30, 1999, section 48101(a) is amended by striking paragraphs (1), (2), 
and (3) and inserting the following:
          ``(1) Such sums as may be necessary for fiscal year 2000.
          ``(2) $2,500,000,000 for fiscal year 2001.
          ``(3) $3,000,000,000 for each of fiscal years 2002 through 
        2004.''.
  (b) Universal Access Systems.--Section 48101 is amended by adding at 
the end the following:
  ``(d) Universal Access Systems.--Of the amounts appropriated under 
subsection (a) for fiscal year 2001, $8,000,000 may be used for the 
voluntary purchase and installation of universal access systems.''.

SEC. 103. FAA OPERATIONS.

  (a) Authorization of Appropriations From General Fund.--Effective 
September 30, 1999, section 106(k) is amended--
          (1) by inserting ``(1) In general.--'' before ``There'';
          (2) in paragraph (1) (as designated by paragraph (1) of this 
        subsection) by striking ``the Administration'' and all that 
        follows through the period at the end and inserting the 
        following: ``the Administration--
                  ``(A) such sums as may be necessary for fiscal year 
                2000;
                  ``(B) $6,450,000,000 for fiscal year 2001;
                  ``(C) $6,886,000,000 for fiscal year 2002;
                  ``(D) $7,357,000,000 for fiscal year 2003; and
                  ``(E) $7,860,000,000 for fiscal year 2004.'';
          (3) by adding at the end the following:
          ``(2) Authorized expenditures.--Of the amounts appropriated 
        under paragraph (1) for fiscal years 2001 through 2004--
                  ``(A) $450,000 per fiscal year may be used for 
                wildlife hazard mitigation measures and management of 
                the wildlife strike database of the Federal Aviation 
                Administration;
                  ``(B) such sums as may be necessary may be used to 
                fund an office within the Federal Aviation 
                Administration dedicated to supporting infrastructure 
                systems development for both general aviation and the 
                vertical flight industry;
                  ``(C) such sums as may be necessary may be used to 
                revise existing terminal and en route procedures and 
                instrument flight rules to facilitate the takeoff, 
                flight, and landing of tiltrotor aircraft and to 
                improve the national airspace system by separating such 
                aircraft from congested flight paths of fixed-wing 
                aircraft;
                  ``(D) such sums as may be necessary may be used to 
                establish helicopter approach procedures using current 
                technologies (such as the Global Positioning System) to 
                support all-weather, emergency medical service for 
                trauma patients;
                  ``(E) $3,000,000 per fiscal year may be used to 
                implement the 1998 airport surface operations safety 
                action plan of the Federal Aviation Administration;
                  ``(F) $2,000,000 per fiscal year may be used to 
                support a university consortium established to provide 
                an air safety and security management certificate 
                program, working cooperatively with United States air 
                carriers; except that funds under this subparagraph--
                          ``(i) may not be used for the construction of 
                        a building or other facility; and
                          ``(ii) may only be awarded on the basis of 
                        open competition; and
                  ``(G) such sums as may be necessary may be used to 
                develop or improve training programs (including model 
                training programs and curriculum) for security 
                screeners at airports.''; and
          (4) by indenting paragraph (1) (as designated by paragraph 
        (1) of this subsection) and aligning such paragraph (1) with 
        paragraph (2) (as added by paragraph (2) of this subsection).
  (b) Authorization of Appropriations From Trust Fund.--Section 48104 
is amended--
          (1) by striking subsection (b) and redesignating subsection 
        (c) as subsection (b);
          (2) in subsection (b) (as so redesignated)--
                  (A) by striking the subsection heading and inserting 
                ``General Rule: Limitation on Trust Fund Amounts.--''; 
                and
                  (B) in the matter preceding paragraph (1)--
                          (i) by striking ``The amount'' and inserting 
                        ``Except as provided in subsection (c), the 
                        amount''; and
                          (ii) by striking ``for each of fiscal years 
                        1994 through 1998'' and inserting ``for fiscal 
                        year 2000 and each fiscal year thereafter''; 
                        and
          (3) by adding at the end the following:
  ``(c) Special Rule for Fiscal Years 2000-2004.--
          ``(1) In general.--If the amount appropriated under section 
        106(k) for any of fiscal years 2000 through 2004 less the 
        amount that would be appropriated, but for this subsection, 
        from the Trust Fund for the purposes of paragraphs (1) and (2) 
        of subsection (a) for such fiscal year is greater than the 
        general fund cap, the amount appropriated from the Trust Fund 
        for the purposes of paragraphs (1) and (2) of subsection (a) 
        for such fiscal year shall equal the amount appropriated under 
        section 106(k) for such fiscal year less the general fund cap.
          ``(2) General fund cap defined.--In this subsection, the term 
        `general fund cap' means that portion of the amounts 
        appropriated for programs of the Federal Aviation 
        Administration for fiscal year 1998 that was derived from the 
        general fund of the Treasury.
  (c) Limitation on Obligating or Expending Amounts.--Section 48108 is 
amended by striking subsection (c).

SEC. 104. AIP FORMULA CHANGES.

  (a) Discretionary Fund.--Section 47115 is amended by striking 
subsections (g) and (h) and inserting the following:
  ``(g) Priority for Letters of Intent.--
          ``(1) In general.--Subject to paragraph (2), the Secretary 
        shall fulfill intentions to obligate under section 47110(e) 
        with amounts available in the fund established by subsection 
        (a) and, if such amounts are not sufficient for a fiscal year, 
        with amounts made available to carry out sections 
        47114(c)(1)(A), 47114(c)(2), 47114(d), and 47117(e) on a pro 
        rata basis.
          ``(2) Procedure.--Before apportioning funds under sections 
        47114(c)(1)(A), 47114(c)(2), 47114(d), and 47117(e) of each 
        fiscal year, the Secretary shall determine the amount of funds 
        that will be necessary to fulfill intentions to obligate under 
        section 47110(e) in such fiscal year. If such amount is greater 
        than the amount of funds that will be available in the fund 
        established by subsection (a) for such fiscal year, the 
        Secretary shall reduce the amount to be apportioned under such 
        sections for such fiscal year on a pro rata basis by an amount 
        equal to the difference.''.
  (b) Amounts Apportioned to Sponsors.--
          (1) Amounts to be apportioned.--Effective October 1, 2000, 
        section 47114(c)(1) is amended--
                  (A) in subparagraph (A) by striking clauses (i) 
                through (v) and inserting the following:
          ``(i) $23.40 for each of the first 50,000 passenger boardings 
        at the airport during the prior calendar year;
          ``(ii) $15.60 for each of the next 50,000 passenger boardings 
        at the airport during the prior calendar year;
          ``(iii) $7.80 for each of the next 400,000 passenger 
        boardings at the airport during the prior calendar year;
          ``(iv) $1.95 for each of the next 500,000 passenger boardings 
        at the airport during the prior calendar year; and
          ``(v) $1.50 for each additional passenger boarding at the 
        airport during the prior calendar year.''; and
                  (B) in subparagraph (B) by striking ``$500,000 nor 
                more than $22,000,000'' and inserting ``$1,500,000''.
          (2) Special rules.--Section 47114(c)(1) is amended by adding 
        at the end the following:
  ``(C) Notwithstanding subparagraph (A), the Secretary shall apportion 
to an airport sponsor in a fiscal year an amount equal to the amount 
apportioned to that sponsor in the previous fiscal year if the 
Secretary finds that--
          ``(i) passenger boardings at the airport were less than 
        10,000 in the calendar year used to calculate the 
        apportionment;
          ``(ii) the airport had at least 10,000 passenger boardings in 
        the calendar year prior to the calendar year used to calculate 
        the apportionment; and
          ``(iii) the cause of the decrease in passenger boardings was 
        a temporary but significant interruption in service by an air 
        carrier to that airport due to an employment action, natural 
        disaster, or other event unrelated to the demand for air 
        transportation at the airport.
  ``(D) Notwithstanding subparagraph (A), the Secretary shall apportion 
on the first day of the first fiscal year following the official 
opening of a new airport with scheduled passenger air transportation an 
amount equal to the minimum amount set forth in subparagraph (B) to the 
sponsor of such airport.''.
  (c) Cargo Only Airports.--Section 47114(c)(2)(A) is amended by 
striking ``2.5 percent'' and inserting ``3 percent''.
  (d) Entitlement for General Aviation Airports.--Effective October 1, 
2000, section 47114(d) is amended--
          (1) in the subsection heading by striking ``to States'' and 
        inserting ``for General Aviation Airports'';
          (2) in paragraph (1) by striking ``(1) In this'' and 
        inserting ``(1) Definitions.--In this'';
          (3) by indenting paragraph (1) and aligning paragraph (1) 
        (and its subparagraphs) with paragraph (2) (as amended by 
        paragraph (2) of this subsection); and
          (4) by striking paragraph (2) and inserting the following:
          ``(2) Apportionments.--The Secretary shall apportion 20 
        percent of the amount subject to apportionment for each fiscal 
        year as follows:
                  ``(A) To each airport, excluding primary airports but 
                including reliever and nonprimary commercial service 
                airports, in States the lesser of--
                          ``(i) $200,000; or
                          ``(ii) \1/5\ of the most recently published 
                        estimate of the 5-year costs for airport 
                        improvement for the airport, as listed in the 
                        national plan of integrated airport systems 
                        developed by the Federal Aviation 
                        Administration under section 47103.
                  ``(B) Any remaining amount to States as follows:
                          ``(i) 0.62 percent of the remaining amount to 
                        Guam, American Samoa, the Commonwealth of the 
                        Northern Mariana Islands, and the Virgin 
                        Islands.
                          ``(ii) Except as provided in paragraph (3), 
                        49.69 percent of the remaining amount for 
                        airports, excluding primary airports but 
                        including reliever and nonprimary commercial 
                        service airports, in States not named in clause 
                        (i) in the proportion that the population of 
                        each of those States bears to the total 
                        population of all of those States.
                          ``(iii) Except as provided in paragraph (3), 
                        49.69 percent of the remaining amount for 
                        airports, excluding primary airports but 
                        including reliever and nonprimary commercial 
                        service airports, in States not named in clause 
                        (i) in the proportion that the area of each of 
                        those States bears to the total area of all of 
                        those States.''.
  (e) Use of Apportionments for Alaska, Puerto Rico, and Hawaii.--
Section 47114(d)(3) is amended to read as follows:
          ``(3) Special rule.--An amount apportioned under paragraph 
        (2) to Alaska, Puerto Rico, or Hawaii for airports in such 
        State may be made available by the Secretary for any public 
        airport in those respective jurisdictions.''.
  (f) Use of State-Apportioned Funds for System Planning.--Section 
47114(d) is amended by adding at the end the following:
          ``(4) Integrated airport system planning.--Notwithstanding 
        paragraph (2), funds made available under this subsection may 
        be used for integrated airport system planning that encompasses 
        1 or more primary airports.''.
  (g) Flexibility in Pavement Construction Standards.--
  Section 47114(d) is further amended by adding at the end the 
following:
          ``(5) Flexibility in pavement construction standards.--The 
        Secretary may permit the use of State highway specifications 
        for airfield pavement construction using funds made available 
        under this subsection at nonprimary airports serving aircraft 
        that do not exceed 60,000 pounds gross weight if the Secretary 
        determines that--
                  ``(A) safety will not be negatively affected; and
                  ``(B) the life of the pavement will not be shorter 
                than it would be if constructed using Federal Aviation 
                Administration standards.''.
  (h) Grants for Airport Noise Compatibility Planning.--Section 
47117(e)(1) is amended--
          (1) in subparagraph (A) by striking ``31 percent'' each place 
        it appears and inserting ``34 percent''; and
          (2) in subparagraph (B) by striking ``At least'' and all that 
        follows through ``sponsors of current'' and inserting ``At 
        least 4 percent to sponsors of current''.
  (i) Supplemental Apportionment for Alaska.--Effective October 1, 
2000, section 47114(e) is amended--
          (1) in the subsection heading by striking ``Alternative'' and 
        inserting ``Supplemental'';
          (2) in paragraph (1)--
                  (A) by striking ``Instead of apportioning amounts for 
                airports in Alaska under'' and inserting ``In 
                general.--Notwithstanding'';
                  (B) by striking ``those airports'' and inserting 
                ``airports in Alaska''; and
                  (C) by inserting before the period at the end of the 
                first sentence ``and by increasing the amount so 
                determined for each of those airports by 3 times'';
          (3) in paragraph (2) by inserting ``Authority for 
        discretionary grants.--'' before ``This subsection'';
          (4) by striking paragraph (3) and inserting the following:
          ``(3) Airports eligible for funds.--An amount apportioned 
        under this subsection may be used for any public airport in 
        Alaska.''; and
          (5) by indenting paragraph (1) and aligning paragraph (1) 
        (and its subparagraphs) and paragraph (2) with paragraph (3) 
        (as amended by paragraph (4) of this subsection).
  (j) Repeal of Apportionment Limitation on Commercial Service Airports 
in Alaska.--Section 47117 is amended by striking subsection (f) and by 
redesignating subsections (g) and (h) as subsections (f) and (g), 
respectively.

SEC. 105. PASSENGER FACILITY FEES.

  (a) Authority To Impose Higher Fee.--Section 40117(b) is amended by 
adding at the end the following:
  ``(4) Notwithstanding paragraph (1), the Secretary may authorize 
under this section an eligible agency to impose a passenger facility 
fee in whole dollar amounts of more than $3 on each paying passenger of 
an air carrier or foreign air carrier boarding an aircraft at an 
airport the agency controls to finance an eligible airport-related 
project, including making payments for debt service on indebtedness 
incurred to carry out the project, if the Secretary finds--
          ``(A) that the project will make a significant contribution 
        to improving air safety and security, increasing competition 
        among air carriers, reducing current or anticipated congestion, 
        or reducing the impact of aviation noise on people living near 
        the airport;
          ``(B) that the project cannot be paid for from funds 
        reasonably expected to be available for the programs referred 
        to in section 48103; and
          ``(C) that the amount to be imposed is not more than twice 
        that which may be imposed under paragraph (1).''.
  (b) Limitation on Approval of Certain Applications.--Section 40117(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 ``; and''; and
          (3) by adding at the end the following:
          ``(4) in the case of an application to impose a fee of more 
        than $3 for a surface transportation or terminal project, the 
        agency has made adequate provision for financing the airside 
        needs of the airport, including runways, taxiways, aprons, and 
        aircraft gates.''.
  (c) Reducing Apportionments.--Section 47114(f) is amended--
          (1) by striking ``An amount'' and inserting the following:
          ``(1) In general.--An amount'';
          (2) by striking ``an amount equal to'' and all that follows 
        through the period at the end and inserting the following: ``an 
        amount equal to--
                  ``(A) in the case of a fee of $3 or less, 50 percent 
                of the projected revenues from the fee in the fiscal 
                year but not by more than 50 percent of the amount that 
                otherwise would be apportioned under this section; and
                  ``(B) in the case of a fee of more than $3, 75 
                percent of the projected revenues from the fee in the 
                fiscal year but not by more than 75 percent of the 
                amount that otherwise would be apportioned under this 
                section.''; and
          (3) by adding at the end the following:
          ``(2) Effective date of reduction.--A reduction in an 
        apportionment required by paragraph (1) shall not take effect 
        until the first fiscal year following the year in which the 
        collection of the fee imposed under section 40117 is begun.''.

SEC. 106. BUDGET SUBMISSION.

  The Administrator shall transmit to the Committee on Commerce, 
Science, and Transportation of the Senate and the Committee on 
Transportation and Infrastructure of the House of Representatives a 
copy of the annual budget estimates of the Federal Aviation 
Administration, including line item justifications, at the same time 
the annual budget estimates are submitted to the Committees on 
Appropriations of the Senate and the House of Representatives.

                    Subtitle B--Airport Development

SEC. 121. RUNWAY INCURSION PREVENTION DEVICES; EMERGENCY CALL BOXES.

  (a) Policy.--Section 47101(a)(11) is amended by inserting 
``(including integrated in-pavement lighting systems for runways and 
taxiways and other runway and taxiway incursion prevention devices)'' 
after ``technology''.
  (b) Maximum Use of Safety Facilities.--Section 47101(f) is amended--
          (1) by striking ``and'' at the end of paragraph (9); and
          (2) by striking the period at the end of paragraph (10) and 
        inserting ``; and''; and
          (3) by adding at the end the following:
          ``(11) runway and taxiway incursion prevention devices, 
        including integrated in-pavement lighting systems for runways 
        and taxiways.''.
  (c) Inclusion of Universal Access Systems and Emergency Call Boxes as 
Airport Development.--Section 47102(3)(B) is amended--
          (1) in clause (ii)--
                  (A) by striking ``and universal access systems,'' and 
                inserting ``, universal access systems, and emergency 
                call boxes,''; and
                  (B) by inserting ``and integrated in-pavement 
                lighting systems for runways and taxiways and other 
                runway and taxiway incursion prevention devices'' 
                before the semicolon at the end; and
          (2) by inserting before the semicolon at the end of clause 
        (iii) the following: ``, including closed circuit weather 
        surveillance equipment''.

SEC. 122. WINDSHEAR DETECTION EQUIPMENT.

  Section 47102(3)(B) is further amended--
          (1) by striking ``and'' at the end of clause (v);
          (2) by striking the period at the end of clause (vi) and 
        inserting a semicolon; and
          (3) by adding at the end the following:
                          ``(vii) windshear detection equipment; and''.

SEC. 123. ENHANCED VISION TECHNOLOGIES.

  (a) Study.--The Administrator shall conduct a study of the 
feasibility of requiring United States airports to install enhanced 
vision technologies to replace or enhance conventional landing light 
systems over the 10-year period following the date of completion of 
such study.
  (b) Report.--Not later than 180 days after the date of enactment of 
this Act, the Administrator shall transmit to Congress a report on the 
results of the study conducted under subsection (a), together with such 
recommendations as the Administrator considers appropriate.
  (c) Inclusion of Installation as Airport Development.--Section 47102 
is amended--
          (1) in paragraph (3)(B) (as amended by this Act) by adding at 
        the end the following:
                          ``(viii) enhanced vision technologies that 
                        are certified by the Administrator of the 
                        Federal Aviation Administration and that are 
                        intended to replace or enhance conventional 
                        landing light systems.''; and
          (2) by adding at the end the following:
          ``(21) Enhanced vision technologies.--The term `enhanced 
        vision technologies' means laser guidance, ultraviolet 
        guidance, infrared, and cold cathode technologies.''.
  (d) Certification.--Not later than 180 days after the date of 
enactment of this Act, the Administrator shall transmit to Congress a 
schedule for deciding whether or not to certify laser guidance 
equipment for use as approach lighting at United States airports and of 
cold cathode lighting equipment for use as runway and taxiway lighting 
at United States airports and as lighting at United States heliports.

SEC. 124. PAVEMENT MAINTENANCE.

  (a) Repeal of Pilot Program.--
          (1) In general.--Section 47132 is repealed.
          (2) Conforming amendment.--The analysis for chapter 471 is 
        amended by striking the item relating to section 47132.
  (b) Eligibility as Airport Development.--Section 47102(3) is amended 
by adding at the end the following:
                  ``(H) routine work to preserve and extend the useful 
                life of runways, taxiways, and aprons at airports that 
                are not primary airports, under guidelines issued by 
                the Administrator.''.

SEC. 125. COMPETITION PLANS.

  (a) In General.--Section 47106 is amended by adding at the end the 
following:
  ``(f) Competition Plans.--
          ``(1) Prohibition.--Beginning in fiscal year 2001, no 
        passenger facility fee may be approved for a covered airport 
        under section 40117 and no grant may be made under this 
        subchapter for a covered airport unless the airport has 
        submitted to the Secretary a written competition plan in 
        accordance with this subsection.
          ``(2) Contents.--A competition plan under this subsection 
        shall include information on the availability of airport gates 
        and related facilities, leasing and sub-leasing arrangements, 
        gate-use requirements, patterns of air service, gate-assignment 
        policy, financial constraints, airport controls over air- and 
        ground-side capacity, whether the airport intends to build or 
        acquire gates that would be used as common facilities, and 
        airfare levels (as compiled by the Department of 
        Transportation) compared to other large airports.
          ``(3) Covered airport defined.--In this subsection, the term 
        `covered airport' means a commercial service airport--
                  ``(A) that has more than .25 percent of the total 
                number of passenger boardings each year at all such 
                airports; and
                  ``(B) at which 1 or 2 air carriers control more than 
                50 percent of the passenger boardings.''.
  (b) Cross Reference.--Section 40117 is amended by adding at the end 
the following:
  ``(j) Competition Plans.--Beginning in fiscal year 2001, no eligible 
agency may impose a passenger facility fee under this section with 
respect to a covered airport (as such term is defined in section 
47106(f)) unless the agency has submitted to the Secretary a written 
competition plan in accordance with such section. This subsection does 
not apply to passenger facility fees in effect before the date of 
enactment of this subsection.''.

SEC. 126. MATCHING SHARE.

  Section 47109(a) is amended--
          (1) by redesignating paragraphs (2) and (3) as paragraphs (3) 
        and (4), respectively;
          (2) by inserting after paragraph (1) the following:
          ``(2) not more than 90 percent for a project funded by a 
        grant issued to and administered by a State under section 
        47128, relating to the State block grant program;'';
          (3) by striking ``and'' at the end of paragraph (3) (as so 
        redesignated);
          (4) by striking the period at the end of paragraph (4) (as so 
        redesignated) and inserting ``; and''; and
          (5) by adding at the end the following:
          ``(5) 100 percent in fiscal year 2001 for any project--
                  ``(A) at an airport other than a primary airport; or
                  ``(B) at a primary airport having less than .05 
                percent of the total number of passenger boardings each 
                year at all commercial service airports.''.

SEC. 127. LETTERS OF INTENT.

  Section 47110(e) is amended--
          (1) by striking paragraph (2)(C) and inserting the following:
          ``(C) that meets the criteria of section 47115(d) and, if for 
        a project at a commercial service airport having at least 0.25 
        percent of the boardings each year at all such airports, the 
        Secretary decides will enhance system-wide airport capacity 
        significantly.''; and
          (2) by striking paragraph (5) and inserting the following:
  ``(5) Letters of intent.--The Secretary may not require an eligible 
agency to impose a passenger facility fee under section 40117 in order 
to obtain a letter of intent under this section.''.

SEC. 128. GRANTS FROM SMALL AIRPORT FUND.

  (a) Set-Aside for Meeting Safety Terms in Airport Operating 
Certificates.--Section 47116 is amended by adding at the end the 
following:
  ``(e) Set-Aside for Meeting Safety Terms in Airport Operating 
Certificates.--In the first fiscal year beginning after the effective 
date of regulations issued to carry out section 44706(b) with respect 
to airports described in section 44706(a)(2), and in each of the next 4 
fiscal years, the lesser of $15,000,000 or 20 percent of the amounts 
that would otherwise be distributed to sponsors of airports under 
subsection (b)(2) shall be used to assist the airports in meeting the 
terms established by the regulations. If the Secretary publishes in the 
Federal Register a finding that all the terms established by the 
regulations have been met, this subsection shall cease to be effective 
as of the date of such publication.''.
  (b) Notification of Source of Grant.--Section 47116 is further 
amended by adding at the end the following:
  ``(f) Notification of Source of Grant.--Whenever the Secretary makes 
a grant under this section, the Secretary shall notify the recipient of 
the grant, in writing, that the source of the grant is from the small 
airport fund.''.
  (c) Technical Amendments.--Section 47116(d) is amended--
          (1) by striking ``In making'' and inserting the following:
          ``(1) Construction of new runways.--In making'';
          (2) by adding at the end the following:
          ``(2) Airport development for turbine powered aircraft.--In 
        making grants to sponsors described in subsection (b)(1), the 
        Secretary shall give priority consideration to airport 
        development projects to support operations by turbine powered 
        aircraft, if the non-Federal share of the project is at least 
        40 percent.''; and
          (3) by aligning the remainder of paragraph (1) (as designated 
        by paragraph (1) of this subsection) with paragraph (2) (as 
        added by paragraph (2) of this subsection).

SEC. 129. DISCRETIONARY USE OF UNUSED APPORTIONMENTS.

  Section 47117(f) (as redesignated by section 104(j) of this Act) is 
amended to read as follows:
  ``(f) Discretionary Use of Apportionments.--
          ``(1) In general.--Subject to paragraph (2), if the Secretary 
        finds that all or part of an amount of an apportionment under 
        section 47114 is not required during a fiscal year to fund a 
        grant for which the apportionment may be used, the Secretary 
        may use during such fiscal year the amount not so required to 
        make grants for any purpose for which grants may be made under 
        section 48103. The finding may be based on the notifications 
        that the Secretary receives under section 47105(f) or on other 
        information received from airport sponsors.
          ``(2) Restoration of apportionments.--
                  ``(A) In general.--If the fiscal year for which a 
                finding is made under paragraph (1) with respect to an 
                apportionment is not the last fiscal year of 
                availability of the apportionment under subsection (b), 
                the Secretary shall restore to the apportionment an 
                amount equal to the amount of the apportionment used 
                under paragraph (1) for a discretionary grant whenever 
                a sufficient amount is made available under section 
                48103.
                  ``(B) Period of availability.--If restoration under 
                this paragraph is made in the fiscal year for which the 
                finding is made or the succeeding fiscal year, the 
                amount restored shall be subject to the original period 
                of availability of the apportionment under subsection 
                (b). If the restoration is made thereafter, the amount 
                restored shall remain available in accordance with 
                subsection (b) for the original period of availability 
                of the apportionment, plus the number of fiscal years 
                during which a sufficient amount was not available for 
                the restoration.
          ``(3) Newly available amounts.--
                  ``(A) Restored amounts to be unavailable for 
                discretionary grants.--Of an amount newly available 
                under section 48103 of this title, an amount equal to 
                the amounts restored under paragraph (2) shall not be 
                available for discretionary grant obligations under 
                section 47115.
                  ``(B) Use of remaining amounts.--Subparagraph (A) 
                does not impair the Secretary's authority under 
                paragraph (1), after a restoration under paragraph (2), 
                to apply all or part of a restored amount that is not 
                required to fund a grant under an apportionment to fund 
                discretionary grants.
          ``(4) Limitations on obligations apply.--Nothing in this 
        subsection shall be construed to authorize the Secretary to 
        incur grant obligations under section47104 for a fiscal year in 
an amount greater than the amount made available under section 48103 
for such obligations for such fiscal year.''.

SEC. 130. DESIGNATING CURRENT AND FORMER MILITARY AIRPORTS.

  (a) In General.--Section 47118 is amended--
          (1) in subsection (a) by striking ``12'' and inserting ``12 
        for fiscal year 2000 and 20 for each fiscal year thereafter'';
          (2) by striking subsection (c) and redesignating subsections 
        (d) through (f) as subsections (c) through (e), respectively;
          (3) in subsection (c) (as so redesignated)--
                  (A) by striking ``47117(e)(1)(E)'' and inserting 
                ``47117(e)(1)(B)'';
                  (B) by striking ``5-fiscal-year periods'' and 
                inserting ``periods, each not to exceed 5 fiscal 
                years,''; and
                  (C) by striking ``each such subsequent 5-fiscal-year 
                period'' and inserting ``each such subsequent period''; 
                and
          (4) by adding at the end the following:
  ``(f) Designation of General Aviation Airport.--Notwithstanding any 
other provision of this section, at least 3 of the airports designated 
under subsection (a) shall be general aviation airports that were 
former military installations closed or realigned under a section 
referred to in subsection (a)(1).''.
  (b) Terminal Building Facilities.--Section 47118(d) (as redesignated 
by subsection (a)(2) of this section) is amended by striking 
``$5,000,000'' and inserting ``$7,000,000''.
  (c) Eligibility of Air Cargo Terminals.--Section 47118(e) (as 
redesignated by subsection (a)(2) of this section) is amended--
          (1) in subsection heading by striking ``and Hangers'' and 
        inserting ``Hangers, and Air Cargo Terminals'';
          (2) by striking ``$4,000,000'' and inserting ``$7,000,000''; 
        and
          (3) by inserting after ``hangers'' the following: ``and air 
        cargo terminals of an area that is 50,000 square feet or 
        less''.

SEC. 131. CONTRACT TOWER COST-SHARING.

  Section 47124(b) is amended by adding at the end the following:
          ``(3) Contract air traffic control tower pilot program.--
                  ``(A) In general.--The Secretary shall establish a 
                pilot program to contract for air traffic control 
                services at Level I air traffic control towers, as 
                defined by the Administrator of the Federal Aviation 
                Administration, that do not qualify for the Contract 
                Tower program established under subsection (a) and 
                continued under paragraph (1) (hereafter in this 
                paragraph referred to as the `Contract Tower Program').
                  ``(B) Program components.--In carrying out the pilot 
                program established under subparagraph (A), the 
                Administrator shall--
                          ``(i) utilize for purposes of cost-benefit 
                        analyses, current, actual, site-specific data, 
                        forecast estimates, or airport master plan data 
                        provided by a facility owner or operator and 
                        verified by the Administrator;
                          ``(ii) approve for participation only 
                        facilities willing to fund a pro rata share of 
                        the operating costs of the air traffic control 
                        tower to achieve a 1 to 1 benefit-to-cost 
                        ratio, as required for eligibility under the 
                        Contract Tower Program; and
                          ``(iii) approve for participation no more 
                        than 2 facilities willing to fund up to 50 
                        percent, but not less than 25 percent, of 
                        construction costs for an air traffic control 
                        tower built by the airport operator and for 
                        each of such facilities the Federal share of 
                        construction cost does not exceed $1,100,000.
                  ``(C) Priority.--In selecting facilities to 
                participate in the program under this paragraph, the 
                Administrator shall give priority to the following:
                          ``(i) Air traffic control towers that are 
                        participating in the Contract Tower Program but 
                        have been notified that they will be terminated 
                        from such program because the Administration 
                        has determined that the benefit-to-cost ratio 
                        for their continuation in such program is less 
                        than 1.0.
                          ``(ii) Air traffic control towers that the 
                        Administrator determines have a benefit-to-cost 
                        ratio of at least .85.
                          ``(iii) Air traffic control towers of the 
                        Federal Aviation Administration that are closed 
                        as a result of the air traffic controllers 
                        strike in 1981.
                          ``(iv) Air traffic control towers that are 
                        located at airports or points at which an air 
                        carrier is receiving compensation under the 
                        essential air service program under this 
                        chapter.
                          ``(v) Air traffic control towers located at 
                        airports that are prepared to assume partial 
                        responsibility for maintenance costs.
                          ``(vi) Air traffic control towers that are 
                        located at airports with safety or operational 
                        problems related to topography, weather, runway 
                        configuration, or mix of aircraft.
                  ``(D) Costs exceeding benefits.--If the costs of 
                operating an air traffic tower under the pilot program 
                established under this paragraph exceed the benefits, 
                the airport sponsor or State of local government having 
                jurisdiction over the airport shall pay the portion of 
                the costs that exceed such benefit.
                  ``(E) Funding.--Of the amounts appropriated pursuant 
                to section 106(k), not to exceed $6,000,000 per fiscal 
                year may be used to carry out this paragraph.''.

SEC. 132. INNOVATIVE USE OF AIRPORT GRANT FUNDS.

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

``Sec. 47135. Innovative financing techniques

  ``(a) In General.--The Secretary of Transportation may approve 
applications for not more than 25 airport development projects for 
which grants received under this subchapter may be used for innovative 
financing techniques. Such projects shall be located at airports that 
each year have less than .25 percent of the total number of passenger 
boardings each year at all commercial service airports.
  ``(b) Purpose.--The purpose of grants made under this section shall 
be to provide information on the benefits and difficulties of using 
innovative financing techniques for airport development projects.
  ``(c) Limitations.--
          ``(1) No guarantees.--In no case shall the implementation of 
        an innovative financing technique under this section be used in 
        a manner giving rise to a direct or indirect guarantee of any 
        airport debt instrument by the United States Government.
          ``(2) Types of techniques.--In this section, innovative 
        financing techniques are limited to--
                  ``(A) payment of interest;
                  ``(B) commercial bond insurance and other credit 
                enhancement associated with airport bonds for eligible 
                airport development; and
                  ``(C) flexible non-Federal matching requirements.''.
  (b) Conforming Amendment.--The analysis for subchapter I of chapter 
471 is amended by adding at the end the following:

``47135. Innovative financing techniques.''.

SEC. 133. AVIATION SECURITY PROGRAM.

  (a) In General.--Subchapter I of chapter 471 is further amended by 
adding the following new section:

``Sec. 47136. Aviation security program

  ``(a) General Authority.--To improve security at public airports in 
the United States, the Secretary of Transportation shall carry out not 
less than one project to test and evaluate innovative aviation security 
systems and related technology.
  ``(b) Priority.--In carrying out this section, the Secretary shall 
give the highest priority to a request from an eligible sponsor for a 
grant to undertake a project that--
          ``(1) evaluates and tests the benefits of innovative aviation 
        security systems or related technology, including explosives 
        detection systems, for the purpose of improving aviation 
        security, including aircraft physical security, access control, 
        and passenger and baggage screening; and
          ``(2) provides testing and evaluation of airport security 
        systems and technology in an operational, test bed environment.
  ``(c) Matching Share.--Notwithstanding section 47109, the United 
States Government's share of allowable project costs for a project 
under this section shall be 100 percent.
  ``(d) Terms and Conditions.--The Secretary may establish such terms 
and conditions as the Secretary determines appropriate for carrying out 
a project under this section, including terms and conditions relating 
to the form and content of a proposal for a project, project 
assurances, and schedule of payments.
  ``(e) Eligible Sponsor Defined.--In this section, the term `eligible 
sponsor' means a nonprofit corporation composed of a consortium of 
public and private persons, including a sponsor of a primary airport, 
with the necessary engineering and technical expertise to successfully 
conduct the testing and evaluation of airport and aircraft related 
security systems.
  ``(f) Authorization of Appropriations.--Of the amounts made available 
to the Secretary under section 47115 in a fiscal year, the Secretary 
shall make available not less than $5,000,000 for the purpose of 
carrying out this section.''.
  (b) Conforming Amendment.--The analysis for subchapter I of chapter 
471 is further amended by adding at the end the following:

``47136. Aviation security program.''.

SEC. 134. INHERENTLY LOW-EMISSION AIRPORT VEHICLE PILOT PROGRAM.

  (a) In General.--Subchapter I of chapter 471 is further amended by 
adding at the end the following:

``Sec. 47137. Inherently low-emission airport vehicle pilot program

  ``(a) In General.--The Secretary of Transportation shall carry out a 
pilot program at not more than 10 public-use airports under which the 
sponsors of such airports may use funds made available under section 
48103 for use at such airports to carry out inherently low-emission 
vehicle activities. Notwithstanding any other provision of this 
subchapter, inherently low-emission vehicle activities shall for 
purposes of the pilot program be treated as eligible for assistance 
under this subchapter.
  ``(b) Location in Air Quality Nonattainment Areas.--A public-use 
airport shall be eligible for participation in the pilot program only 
if the airport is located in an air quality nonattainment area (as 
defined in section 171(2) of the Clean Air Act (42 U.S.C. 7501(d)).
  ``(c) Selection Criteria.--In selecting from among applicants for 
participation in the pilot program, the Secretary shall give priority 
consideration to applicants that will achieve the greatest air quality 
benefits measured by the amount of emissions reduced per dollar of 
funds expended under the pilot program.
  ``(d) United States Government's Share.--Notwithstanding any other 
provision of this subchapter, the United States Government's share of 
the costs of a project carried out under the pilot program shall be 50 
percent.
  ``(e) Maximum Amount.--Not more than $2,000,000 may be expended under 
the pilot program at any single public-use airport.
  ``(f) Report to Congress.--Not later than 18 months after the date of 
enactment of this section, the Secretary shall transmit 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 an evaluation of the 
effectiveness of the pilot program.
  ``(g) Inherently Low-Emission Vehicle Activity Defined.--In this 
section, the term `inherently low-emission vehicle activity' means--
          ``(1) the construction of infrastructure facilities necessary 
        for the use of vehicles that are certified as inherently low-
        emission vehicles under title 40 of the Code of Federal 
        Regulations, that are labeled in accordance with section 
        88.312-93(c) of such title, and that are located or primarily 
        used at public-use airports;
          ``(2) the payment of that portion of the cost of acquiring 
        such vehicles that exceeds the cost of acquiring other vehicles 
        that would be used for the same purpose; or
          ``(3) the acquisition of technological equipment necessary 
        for the use of vehicles described in paragraph (1).''.
  (b) Conforming Amendment.--The analysis for subchapter I of chapter 
471 is further amended by adding at the end the following:

``47137. Inherently low-emission airport vehicle pilot program.''.

SEC. 135. TECHNICAL AMENDMENTS.

  (a) Continuation of Project Funding.--Section 47108 is amended by 
adding at the end the following:
  ``(e) Change in Airport Status.--In the event that the status of a 
primary airport changes to a nonprimary airport at a time when a 
terminal development project under a multiyear agreement under 
subsection (a) is not yet completed, the project shall remain eligible 
for funding from discretionary funds under section 47115 at the funding 
level and under the terms provided by the agreement, subject to the 
availability of funds.''.
  (b) Passenger Facility Fee Waiver for Certain Class of Carriers or 
for Service to Airports in Isolated Communities.--Section 40117(i) is 
amended--
          (1) by striking ``and'' at the end of paragraph (1);
          (2) by striking the period at the end of paragraph (2) and 
        inserting ``; and''; and
          (3) by adding at the end the following:
          ``(3) may permit a public agency to request that collection 
        of a passenger facility fee be waived for--
                  ``(A) passengers enplaned by any class of air carrier 
                or foreign air carrier if the number of passengers 
                enplaned by the carrier in the class constitutes not 
                more than 1 percent of the total number of passengers 
                enplaned annually at the airport at which the fee is 
                imposed; or
                  ``(B) passengers traveling to an airport--
                          ``(i) that has fewer than 2,500 passenger 
                        boardings each year and receives scheduled 
                        passenger service; and
                          ``(ii) in a community which has a population 
                        of less than 10,000 and is not connected by a 
                        land highway to the land-connected National 
                        Highway System within a State.''.

SEC. 136. CONVEYANCES OF AIRPORT PROPERTY FOR PUBLIC AIRPORTS.

  (a) Project Grant Assurances.--Section 47107(h) is amended by 
inserting ``(including an assurance with respect to disposal of land by 
an airport owner or operator under subsection (c)(2)(B) without regard 
to whether or not the assurance or grant was made before December 29, 
1987)'' after ``1987''.
  (b) Conveyances of United States Government Land.--Section 47125(a) 
is amended by adding at the end the following: ``The Secretary may only 
release an option of the United States for a reversionary interest 
under this subsection after providing notice and an opportunity for 
public comment. The Secretary shall publish in the Federal Register any 
decision of the Secretary to release a reversionary interest and the 
reasons for the decision.''.
  (c) Requests by Public Agencies.--Section 47151 is amended by adding 
at the end the following:
  ``(d) Requests by Public Agencies.--Except with respect to a request 
made by another department, agency, or instrumentality of the executive 
branch of the United States Government, such a department, agency, or 
instrumentality shall give priority consideration to a request made by 
a public agency (as defined in section 47102) for surplus property 
described in subsection (a) for use at a public airport.''.
  (d) Notice and Public Comment; Publication of Decisions.--Section 
47153(a) is amended--
          (1) in paragraph (1) by inserting ``, after providing notice 
        and an opportunity for public comment,'' after ``if the 
        Secretary decides''; and
          (2) by adding at the end the following:
          ``(3) Publication of decisions.--The Secretary shall publish 
        in the Federal Register any decision to waive a term under 
        paragraph (1) and the reasons for the decision.''.
  (e) Considerations.--Section 47153 is amended by adding at the end 
the following:
  ``(c) Considerations.--In deciding whether to waive a term required 
by section 47152 or add another term, the Secretary shall consider the 
current and future needs of the users of the airport.''.
  (f) References to Gifts.--Chapter 471 is amended--
          (1) in section 47151--
                  (A) in subsection (a)--
                          (i) in the matter preceding paragraph (1) by 
                        striking ``give'' and inserting ``convey to''; 
                        and
                          (ii) in paragraph (2) by striking ``gift'' 
                        and inserting ``conveyance'';
                  (B) in subsection (b)--
                          (i) by striking ``giving'' and inserting 
                        ``conveying''; and
                          (ii) by striking ``gift'' and inserting 
                        ``conveyance''; and
                  (C) in subsection (c)--
                          (i) in the subsection heading by striking 
                        ``Given'' and inserting ``Conveyed''; and
                          (ii) by striking ``given'' and inserting 
                        ``conveyed'';
          (2) in section 47152--
                  (A) in the section heading by striking ``gifts'' and 
                inserting ``conveyances''; and
                  (B) in the matter preceding paragraph (1) by striking 
                ``gift'' and inserting ``conveyance'';
          (3) in section 47153(a)(1)--
                  (A) by striking ``gift'' each place it appears and 
                inserting ``conveyance''; and
                  (B) by striking ``given'' and inserting ``conveyed''; 
                and
          (4) in the analysis for such chapter by striking the item 
        relating to section 47152 and inserting the following:

``47152. Terms of conveyances.''.

                       Subtitle C--Miscellaneous

SEC. 151. TREATMENT OF CERTAIN FACILITIES AS AIRPORT-RELATED PROJECTS.

  Section 40117(a)(3)(E) is amended--
          (1) by striking ``and'' and inserting a comma; and
          (2) by striking the period at the end and inserting the 
        following: ``(including structural foundations and floor 
        systems, exterior building walls and load-bearing interior 
        columns or walls, windows, door and roof systems, and building 
        utilities (including heating, air conditioning, ventilation, 
        plumbing, and electrical service)), and aircraft fueling 
        facilities adjacent to the gate.''.

SEC. 152. TERMINAL DEVELOPMENT COSTS.

  (a) With Respect to Passenger Facility Charges.--Section 40117(a)(3) 
is further amended--
          (1) by redesignating subparagraphs (C), (D), and (E) as 
        subparagraphs (D), (E), and (F), respectively; and
          (2) by inserting after subparagraph (B) the following:
                  ``(C) for costs of terminal development referred to 
                in subparagraph (B) incurred after August 1, 1986, at 
                an airport that did not have more than .25 percent of 
                the total annual passenger boardings in the United 
                States in the most recent calendar year for which data 
                is available and at which total passenger boardings 
                declined by at least 16 percent between calendar year 
                1989 and calendar year 1997;''.
  (b) Repaying Borrowed Money.--Section 47119(a) is amended--
          (1) in the matter preceding paragraph (1)--
                  (A) by striking ``0.05'' and inserting ``0.25''; and
                  (B) by striking ``between January 1, 1992, and 
                October 31, 1992,'' and inserting ``between August 1, 
                1986, and September 30, 1990, or between June 1, 1991, 
                and October 31, 1992,''; and
          (2) in paragraph (1)(B) by striking ``an airport development 
        project outside the terminal area at that airport'' and 
        inserting ``any needed airport development project affecting 
        safety, security, or capacity''.
  (c) Nonhub Airports.--Section 47119(c) is amended by striking 
``0.05'' and inserting ``0.25''.
  (d) Nonprimary Commercial Service Airports.--Section 47119 is amended 
by adding at the end the following:
  ``(d) Determination of Passenger Boarding at Commercial Service 
Airport.--For the purpose of determining whether an amount may be 
distributed for a fiscal year from the discretionary fund in accordance 
with subsection (b)(2)(A) to a commercial service airport, the 
Secretary shall make the determination of whether or not a public 
airport is a commercial service airport on the basis of the number of 
passenger boardings and type of air service at the public airport in 
the calendar year that includes the first day of such fiscal year or 
the preceding calendar year, whichever is more beneficial to the 
airport.''.

SEC. 153. GENERAL FACILITIES AUTHORITY.

  (a) Continuation of ILS Inventory Program.--Section 44502(a)(4)(B) is 
amended--
          (1) by striking ``each of fiscal years 1995 and 1996'' and 
        inserting ``each of fiscal years 1999 through 2004''; and
          (2) by inserting ``under new or existing contracts'' after 
        ``including acquisition''.
  (b) Loran-C Navigation Facilities.--Section 44502(a) is amended by 
adding at the end the following:
          ``(5) Maintenance and upgrade of loran-c navigation 
        facilities.--The Secretary shall maintain and upgrade Loran-C 
        navigation facilities throughout the transition period to 
        satellite-based navigation.''.

SEC. 154. DENIAL OF AIRPORT ACCESS TO CERTAIN AIR CARRIERS.

  Section 44706 is amended by adding at the end the following:
  ``(g) Included Charter Air Transportation.--For the purposes of 
subsection (a)(2), a scheduled passenger operation includes charter air 
transportation for which the general public is provided in advance a 
schedule containing the departure location, departure time, and arrival 
location of the flights.
  ``(h) Authority To Preclude Scheduled Passenger Operations.--The 
Administrator shall permit an airport that will be subject to 
certification under subsection (a)(2) to preclude scheduled passenger 
operations (including public charter operations described in subsection 
(g)) at the airport if the airport notifies the Administrator, in 
writing, that it does not intend to obtain an airport operating 
certificate.''.

SEC. 155. CONSTRUCTION OF RUNWAYS.

  Notwithstanding any provision of law that specifically restricts the 
number of runways at a single international airport, the Secretary of 
Transportation may obligate funds made available 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. 156. USE OF RECYCLED MATERIALS.

  (a) Study.--The Administrator shall conduct a study of the use of 
recycled materials (including recycled pavements, waste materials, and 
byproducts) in pavement used for runways, taxiways, and aprons and the 
specification standards in tests necessary for the use of recycled 
materials in such pavement. The primary focus of the study shall be on 
the long term physical performance, safety implications, and 
environmental benefits of using recycled materials in aviation 
pavement.
  (b) Contracting.--The Administrator may carry out the study under 
this section by entering into a contract with a university of higher 
education with expertise necessary to carry out the study.
  (c) Report.--Not later than 1 year after the date of enactment of 
this Act, the Administrator shall transmit to Congress a report on the 
results of the study conducted under this section together with 
recommendations concerning the use of recycled materials in aviation 
pavement.
  (d) Funding.--Of the amounts appropriated pursuant to section 106(k), 
not to exceed $1,500,000 in the aggregate may be used to carry out this 
section.

                 TITLE II--AIRLINE SERVICE IMPROVEMENTS

    Subtitle A--Service to Airports Not Receiving Sufficient Service

SEC. 201. ACCESS TO HIGH DENSITY AIRPORTS.

  (a) Repeal of Slot Rule for Certain Airports.--Effective March 1, 
2000, the requirements of subparts K and S of part 93 of title 14, Code 
of Federal Regulations, are of no force and effect at an airport other 
than Ronald Reagan Washington National Airport. The Secretary of 
Transportation is authorized to undertake appropriate actions to 
effectuate an orderly termination of these requirements.
  (b) Slot Exemptions for Service to Reagan National Airport.--Section 
41714 is amended by striking subsections (e) and (f) and inserting the 
following:
  ``(e) Slots for Airports Not Receiving Sufficient Service.--
          ``(1) Exemptions.--Notwithstanding chapter 491, 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 air carriers to provide nonstop air transportation using 
        jet aircraft that comply with the stage 3 noise levels of part 
        36 of such title 14 between Ronald Reagan Washington National 
        Airport and an airport that had less than 2,000,000 
        enplanements in the most recent year for which such enplanement 
        data is available or between Ronald Reagan Washington National 
        Airport and an airport that does not have nonstop 
        transportation to Ronald Reagan Washington National Airport 
        using such aircraft on the date on which the application for an 
        exemption is filed.
          ``(2) Limitations.--
                  ``(A) Maximum number of exemptions.--No more than 2 
                exemptions per hour and no more than 6 exemptions per 
                day may be granted under this subsection for slots at 
                Ronald Reagan Washington National Airport.
                  ``(B) Maximum distance of flights.--An exemption may 
                be granted under this subsection for a slot at Ronald 
                Reagan Washington National Airport only if the flight 
                utilizing such slot begins or ends within 1,250 miles 
                of the Airport and a stage 3 aircraft is used for such 
                flight.
          ``(3) Application.--An air carrier interested in an exemption 
        under this subsection shall submit to the Secretary an 
        application for such exemption. No application may be submitted 
        to the Secretary before the last day of the 30-day period 
        beginning on the date of the enactment of this paragraph.
          ``(4) Deadline for decision.--Notwithstanding any other 
        provision of law, the Secretary shall make a decision with 
        regard to granting an exemption under this subsection on or 
        before the 120th day following the date of the application for 
        the exemption. If the Secretary does not make the decision on 
        or before such 120th day, the air carrier applying for the 
        service may provide such service until the Secretary makes the 
        decision or the Administrator of the Federal Aviation 
        Administration determines that providing such service would 
        have an adverse effect on air safety.
          ``(5) Period of effectiveness.--An exemption granted under 
        this subsection shall remain in effect only while the air 
        carrier for whom the exemption is granted continues to provide 
        the nonstop air transportation for which the exemption is 
        granted.
  ``(f) Treatment of Certain Commuter Air Carriers.--The Secretary 
shall treat all commuter air carriers that have cooperative agreements, 
including code share agreements with other air carriers, equally for 
determining eligibility for exemptions under this section regardless of 
the form of the corporate relationship between the commuter air carrier 
and the other air carrier.''.
  (c) Conforming Amendments.--Effective March 1, 2000, section 41714 
(as amended by subsection (b) of this section) is amended--
          (1) by striking subsections (a), (b), (c), (g), and (i);
          (2) by redesignating subsections (d), (e), (f), and (h) as 
        subsections (a), (b), (c), and (d), respectively;
          (3) in the heading for subsection (a) (as so redesignated) by 
        striking ``Special Rules for''; and
          (4) by striking subsection (c) (as so redesignated) and 
        inserting the following:
  ``(c) Slot Defined.--The term `slot' means a reservation for an 
instrument flight rule takeoff or landing by an air carrier or an 
aircraft in air transportation.''.

SEC. 202. FUNDING FOR AIR CARRIER SERVICE TO AIRPORTS NOT RECEIVING 
                    SUFFICIENT SERVICE.

  (a) In General.--Section 41742(a) is amended by striking 
``$50,000,000'' and inserting ``$60,000,000''.
  (b) Funding for Small Community Air Service.--Section 41742(b) of 
title 49, United States Code, is amended to read as follows:
  ``(b) Funding for Small Community Air Service.--
          ``(1) In general.--Notwithstanding any other provision of 
        law, from moneys credited to the account established under 
        section 45303(a), including the funds derived from fees imposed 
        under the authority contained in section 45301(a)--
                  ``(A) not to exceed $50,000,000 for each fiscal year 
                beginning after September 30, 1999, shall be used to 
                carry out the small community air service program under 
                this subchapter; and
                  ``(B) not to exceed $10,000,000 for such fiscal year 
                shall be used--
                          ``(i) for assisting an air carrier to 
                        subsidize service to and from an underserved 
                        airport for a period not to exceed 3 years;
                          ``(ii) for assisting an underserved airport 
                        to obtain jet aircraft service (and to promote 
                        passenger use of that service) to and from the 
                        underserved airport; and
                          ``(iii) for assisting an underserved airport 
                        to implement such other measures as the 
                        Secretary of Transportation, in consultation 
                        with such airport, considers appropriate to 
                        improve air service both in terms of the cost 
                        of such service to consumers and the 
                        availability of such service, including 
                        improving air service through marketing and 
                        promotion of air service and enhanced 
                        utilization of airport facilities.
          ``(2) Rural air safety.--Any funds that are made available by 
        paragraph (1) for a fiscal year and that the Secretary 
        determines will not be obligated or expended before the last 
        day of such fiscal year shall be available to the Administrator 
        for use under this subchapter in improving rural air safety at 
        airports with less than 100,000 annual boardings.
          ``(3) Allocation of additional funding.--If, for a fiscal 
        year beginning after September 30, 1999, more than $60,000,000 
        is made available under subsection (a) to carry out the small 
        community air service program, \1/2\ of the amounts in excess 
        of $60,000,000 shall be used for the purposes specified in 
        paragraph (1)(B), in addition to amounts made available for 
        such purposes under paragraph (1)(B).
          ``(4) Use of unobligated amounts.--Any funds made available 
        under paragraph (1)(A) for the small community air service 
        program for a fiscal year that the Secretary determines will 
        not be obligated or expended before the last day of such fiscal 
        year shall be available for use by the Secretary for the 
        purposes described in paragraph (1)(B).
          ``(5) Authorization of appropriations.--In addition to 
        amounts made available under paragraph (1), of the amounts 
        appropriated pursuant to section 106(k) for a fiscal year 
        beginning after September 30, 2000, not to exceed $15,000,000 
        may be used--
                  ``(A) to provide assistance to an air carrier to 
                subsidize service to and from an underserved airport 
                for a period not to exceed 3 years;
                  ``(B) to provide assistance to an underserved airport 
                to obtain jet aircraft service (and to promote 
                passenger use of that service) to and from the 
                underserved airport; and
                  ``(C) to provide assistance to an underserved airport 
                to implement such other measures as the Secretary, in 
                consultation with such airport, considers appropriate 
                to improve air service both in terms of the cost of 
                such service to consumers and the availability of such 
                service, including improving air service through 
                marketing and promotion of air service and enhanced 
                utilization of airport facilities.
          ``(6) Priority criteria for assisting airports not receiving 
        sufficient service.--In providing assistance to airports under 
        paragraphs (1)(B) and (5), the Administrator shall give 
        priority to those airports for which a community will provide, 
        from local sources (other than airport revenues), a portion of 
        the cost of the activity to be assisted.
          ``(7) Definitions.--In this subsection, the following 
        definitions apply:
                  ``(A) Underserved airport.--The term `underserved 
                airport' means a nonhub airport or small hub airport 
                (as such terms are defined in section 41731) that--
                          ``(i) the Secretary determines is not 
                        receiving sufficient air carrier service; or
                          ``(ii) has unreasonably high airfares.
                  ``(B) Unreasonably high airfare.--The term 
                `unreasonably high airfare', as used with respect to an 
                airport, means that the airfare listed in the table 
                entitled `Top 1,000 City-Pair Market Summarized by 
                City', contained in the Domestic Airline Fares Consumer 
                Report of the Department of Transportation, for one or 
                more markets for which the airport is a part of has an 
                average yield listed in such table that is more than 19 
                cents.''.
  (c) Conforming Amendments.--Chapter 417 is amended--
          (1) in the heading for section 41742 by striking 
        ``Essential'' and inserting ``Small community'';
          (2) in each of subsections (a), (b), and (c) of section 41742 
        by striking ``essential air'' each place it appears and 
        inserting ``small community air''; and
          (3) in the analysis for such chapter by striking the item 
        relating to section 41742 and inserting the following:

``41742. Small community air service authorization.''.

SEC. 203. WAIVER OF LOCAL CONTRIBUTION.

  Section 41736(b) is amended by adding at the end the following:
``Paragraph (4) shall not apply to any place for which a proposal was 
approved or that was designated as eligible under this section in the 
period beginning on October 1, 1991, and ending on December 31, 
1997.''.

SEC. 204. POLICY FOR AIR SERVICE TO RURAL AREAS.

  Section 40101(a) is amended by adding at the end the following:
          ``(16) ensuring that consumers in all regions of the United 
        States, including those in small communities and rural and 
        remote areas, have access to affordable, regularly scheduled 
        air service.''.

SEC. 205. DETERMINATION OF DISTANCE FROM HUB AIRPORT.

  The Secretary of Transportation shall not deny assistance with 
respect to a place under subchapter II of chapter 417 of title 49, 
United States Code, solely on the basis that the place is located 
within 70 highway miles of a hub airport (as defined by section 41731 
of such title) if the most commonly used highway route between the 
place and the hub airport exceeds 70 miles.

           Subtitle B--Regional Air Service Incentive Program

SEC. 211. ESTABLISHMENT OF REGIONAL AIR SERVICE INCENTIVE PROGRAM.

  (a) In General.--Chapter 417 is amended by adding at the end the 
following:

        ``SUBCHAPTER III--REGIONAL AIR SERVICE INCENTIVE PROGRAM

``Sec. 41761. Purpose

  ``The purpose of this subchapter is to improve service by jet 
aircraft to underserved markets by providing assistance, in the form of 
Federal credit instruments, to commuter air carriers that purchase 
regional jet aircraft for use in serving those markets.

``Sec. 41762. Definitions

  ``In this subchapter, the following definitions apply:
          ``(1) Air carrier.--The term `air carrier' means any air 
        carrier holding a certificate of public convenience and 
        necessity issued by the Secretary of Transportation under 
        section 41102.
          ``(2) Aircraft purchase.--The term `aircraft purchase' means 
        the purchase of commercial transport aircraft, including spare 
        parts normally associated with the aircraft.
          ``(3) Capital reserve subsidy amount.--The term `capital 
        reserve subsidy amount' means the amount of budget authority 
        sufficient to cover estimated long-term cost to the United 
        States Government of a Federal credit instrument, calculated on 
        a net present value basis, excluding administrative costs and 
        any incidental effects on government receipts or outlays in 
        accordance with provisions of the Federal Credit Reform Act of 
        1990 (2 U.S.C. 661 et seq).
          ``(4) Commuter air carrier.--The term `commuter air carrier' 
        means an air carrier that primarily operates aircraft designed 
        to have a maximum passenger seating capacity of 75 or less in 
        accordance with published flight schedules.
          ``(5) Federal credit instrument.--The term `Federal credit 
        instrument' means a secured loan, loan guarantee, or line of 
        credit authorized to be made under this subchapter.
          ``(6) Financial obligation.--The term `financial obligation' 
        means any note, bond, debenture, or other debt obligation 
        issued by an obligor in connection with the financing of an 
        aircraft purchase, other than a Federal credit instrument.
          ``(7) Lender.--The term `lender' means any non-Federal 
        qualified institutional buyer (as defined by section 
        230.144A(a) of title 17, Code of Federal Regulations (or any 
        successor regulation) known as Rule 144A(a) of the Security and 
        Exchange Commission and issued under the Security Act of 1933 
        (15 U.S.C. 77a et seq.)), including--
                  ``(A) a qualified retirement plan (as defined in 
                section 4974(c) of the Internal Revenue Code of 1986) 
                that is a qualified institutional buyer; and
                  ``(B) a governmental plan (as defined in section 
                414(d) of the Internal Revenue Code of 1986) that is a 
                qualified institutional buyer.
          ``(8) Line of credit.--The term `line of credit' means an 
        agreement entered into by the Secretary with an obligor under 
        section 41763(d) to provide a direct loan at a future date upon 
        the occurrence of certain events.
          ``(9) Loan guarantee.--The term `loan guarantee' means any 
        guarantee or other pledge by the Secretary under section 
        41763(c) to pay all or part of any of the principal of and 
        interest on a loan or other debt obligation issued by an 
        obligor and funded by a lender.
          ``(10) New entrant air carrier.--The term `new entrant air 
        carrier' means an air carrier that has been providing air 
        transportation according to a published schedule for less than 
        5 years, including any person that has received authority from 
        the Secretary to provide air transportation but is not 
        providing air transportation.
          ``(11) Nonhub airport.--The term `nonhub airport' means an 
        airport that each year has less than .05 percent of the total 
        annual boardings in the United States.
          ``(12) Obligor.--The term `obligor' means a party primarily 
        liable for payment of the principal of or interest on a Federal 
        credit instrument, which party may be a corporation, 
        partnership, joint venture, trust, or governmental entity, 
        agency, or instrumentality.
          ``(13) Regional jet aircraft.--The term `regional jet 
        aircraft' means a civil aircraft--
                  ``(A) powered by jet propulsion; and
                  ``(B) designed to have a maximum passenger seating 
                capacity of not less than 30 nor more than 75.
          ``(14) Secured loan.--The term `secured loan' means a direct 
        loan funded by the Secretary in connection with the financing 
        of an aircraft purchase under section 41763(b).
          ``(15) Small hub airport.--The term `small hub airport' means 
        an airport that each year has at least .05 percent, but less 
        than .25 percent, of the total annual boardings in the United 
        States.
          ``(16) Underserved market.--The term `underserved market' 
        means a passenger air transportation market (as defined by the 
        Secretary) that--
                  ``(A) is served (as determined by the Secretary) by a 
                nonhub airport or a small hub airport;
                  ``(B) is not within a 40-mile radius of an airport 
                that each year has at least .25 percent of the total 
                annual boardings in the United States; and
                  ``(C) the Secretary determines does not have 
                sufficient air service.

``Sec. 41763. Federal credit instruments

  ``(a) In General.--Subject to this section, the Secretary of 
Transportation may enter into agreements with 1 or more obligors to 
make available Federal credit instruments, the proceeds of which shall 
be used to finance aircraft purchases.
  ``(b) Secured Loans.--
          ``(1) Terms and limitations.--
                  ``(A) In general.--A secured loan under this section 
                with respect to an aircraft purchase shall be on such 
                terms and conditions and contain such covenants, 
                representatives, warranties, and requirements 
                (including requirements for audits) as the Secretary 
                determines appropriate.
                  ``(B) Maximum amount.--No secured loan may be made 
                under this section--
                          ``(i) that extends to more than 50 percent of 
                        the purchase price (including the value of any 
                        manufacturer credits, post-purchase options, or 
                        other discounts) of the aircraft, including 
                        spare parts, to be purchased; or
                          ``(ii) that, when added to the remaining 
                        balance on any other Federal credit instruments 
                        made under this subchapter, provides more than 
                        $100,000,000 of outstanding credit to any 
                        single obligor.
                  ``(C) Final payment date.--The final payment on the 
                secured loan shall not be due later than 18 years after 
                the date of execution of the loan agreement.
                  ``(D) Subordination.--The secured loan may be 
                subordinate to claims of other holders of obligations 
                in the event of bankruptcy, insolvency, or liquidation 
                of the obligor as determined appropriate by the 
                Secretary.
                  ``(E) Fees.--The Secretary may establish fees at a 
                level sufficient to cover all or a portion of the costs 
                to the United States Government of making a secured 
                loan under this section. The proceeds of such fees 
                shall be deposited in an account to be used by the 
                Secretary for the purpose of administering the program 
                established under this subchapter and shall be 
                available upon deposit until expended.
          ``(2) Repayment.--
                  ``(A) Schedule.--The Secretary shall establish a 
                repayment schedule for each secured loan under this 
                section based on the projected cash flow from aircraft 
                revenues and other repayment sources.
                  ``(B) Commencement.--Scheduled loan repayments of 
                principal and interest on a secured loan under this 
                section shall commence no later than 3 years after the 
                date of execution of the loan agreement.
          ``(3) Prepayment.--
                  ``(A) Use of excess revenue.--After satisfying 
                scheduled debt service requirements on all financial 
                obligations and secured loans and all deposit 
                requirements under the terms of any trust agreement, 
                bond resolution, or similar agreement securing 
                financial obligations, the secured loan may be prepaid 
                at anytime without penalty.
                  ``(B) Use of proceeds of refinancing.--The secured 
                loan may be prepaid at any time without penalty from 
                proceeds of refinancing from non-Federal funding 
                sources.
  ``(c) Loan Guarantees.--
          ``(1) In general.--A loan guarantee under this section with 
        respect to a loan made for an aircraft purchase shall be made 
        in such form and on such terms and conditions and contain such 
        covenants, representatives, warranties, and requirements 
        (including requirements for audits) as the Secretary determines 
        appropriate.
          ``(2) Maximum amount.--No loan guarantee shall be made under 
        this section--
                  ``(A) that extends to more than the unpaid interest 
                and 50 percent of the unpaid principal on any loan;
                  ``(B) that, for any loan or combination of loans, 
                extends to more than 50 percent of the purchase price 
                (including the value of any manufacturer credits, post-
                purchase options, or other discounts) of the aircraft, 
                including spare parts, to be purchased with the loan or 
                loan combination;
                  ``(C) on any loan with respect to which terms permit 
                repayment more than 15 years after the date of 
                execution of the loan; or
                  ``(D) that, when added to the remaining balance on 
                any other Federal credit instruments made under this 
                subchapter, provides more than $100,000,000 of 
                outstanding credit to any single obligor.
          ``(3) Fees.--The Secretary may establish fees at a level 
        sufficient to cover all or a portion of the costs to the United 
        States Government of making a loan guarantee under this 
        section. The proceeds of such fees shall be deposited in an 
        account to be used by the Secretary for the purpose of 
        administering the program established under this subchapter and 
        shall be available upon deposit until expended.
  ``(d) Lines of Credit.--
          ``(1) In general.--Subject to the requirements of this 
        subsection, the Secretary may enter into agreements to make 
        available lines of credit to 1 or more obligors in the form of 
        direct loans to be made by the Secretary at future dates on the 
        occurrence of certain events for any aircraft purchase selected 
        under this section.
          ``(2) Terms and limitations.--
                  ``(A) In general.--A line of credit under this 
                subsection with respect to an aircraft purchase shall 
                be on such terms and conditions and contain such 
                covenants, representatives, warranties, and 
                requirements (including requirements for audits) as the 
                Secretary determines appropriate.
                  ``(B) Maximum amount.--
                          ``(i) Total amount.--The amount of any line 
                        of credit shall not exceed 50 percent of the 
                        purchase price (including the value of any 
                        manufacturer credits, post-purchase options, or 
                        other discounts) of the aircraft, including 
                        spare parts.
                          ``(ii) 1-year draws.--The amount drawn in any 
                        year shall not exceed 20 percent of the total 
                        amount of the line of credit.
                  ``(C) Draws.--Any draw on the line of credit shall 
                represent a direct loan.
                  ``(D) Period of availability.--The line of credit 
                shall be available not more than 5 years after the 
                aircraft purchase date.
                  ``(E) Rights of third-party creditors.--
                          ``(i) Against united states government.--A 
                        third-party creditor of the obligor shall not 
                        have any right against the United States 
                        Government with respect to any draw on the line 
                        of credit.
                          ``(ii) Assignment.--An obligor may assign the 
                        line of credit to 1 or more lenders or to a 
                        trustee on the lender's behalf.
                  ``(F) Subordination.--A direct loan under this 
                subsection may be subordinate to claims of other 
                holders of obligations in the event of bankruptcy, 
                insolvency, or liquidation of the obligor as determined 
                appropriate by the Secretary.
                  ``(G) Fees.--The Secretary may establish fees at a 
                level sufficient to cover all of a portion of the costs 
                to the United States Government of providing a line of 
                credit under this subsection. The proceeds of such fees 
                shall be deposited in an account to be used by the 
                Secretary for the purpose of administering the program 
                established under this subchapter and shall be 
                available upon deposit until expended.
          ``(3) Repayment.--
                  ``(A) Schedule.--The Secretary shall establish a 
                repayment schedule for each direct loan under this 
                subsection.
                  ``(B) Commencement.--Scheduled loan repayments of 
                principal or interest on a direct loan under this 
                subsection shall commence no later than 3 years after 
                the date of the first draw on the line of credit and 
                shall be repaid, with interest, not later than 18 years 
                after the date of the first draw.
  ``(e) Risk Assessment.--Before entering into an agreement under this 
section to make available a Federal credit instrument, the Secretary, 
in consultation with the Director of the Office of Management and 
Budget, shall determine an appropriate capital reserve subsidy amount 
for the Federal credit instrument based on such credit evaluations as 
the Secretary deems necessary.
  ``(f) Conditions.--Subject to subsection (h), the Secretary may only 
make a Federal credit instrument available under this section if the 
Secretary finds that--
          ``(1) the aircraft to be purchased with the Federal credit 
        instrument is a regional jet aircraft needed to improve the 
        service and efficiency of operation of a commuter air carrier 
        or new entrant air carrier;
          ``(2) the commuter air carrier or new entrant air carrier 
        enters into a legally binding agreement that requires the 
        carrier to use the aircraft to provide service to underserved 
        markets; and
          ``(3) the prospective earning power of the commuter air 
        carrier or new entrant air carrier, together with the character 
        and value of the security pledged, including the collateral 
        value of the aircraft being acquired and any other assets or 
        pledges used to secure the Federal credit instrument, furnish--
                  ``(A) reasonable assurances of the air carrier's 
                ability and intention to repay the Federal credit 
                instrument within the terms established by the 
                Secretary--
                          ``(i) to continue its operations as an air 
                        carrier; and
                          ``(ii) to the extent that the Secretary 
                        determines to be necessary, to continue its 
                        operations as an air carrier between the same 
                        route or routes being operated by the air 
                        carrier at the time of the issuance of the 
                        Federal credit instrument; and
                  ``(B) reasonable protection to the United States.
  ``(g) Limitation on Combined Amount of Federal Credit Instruments.--
The Secretary shall not allow the combined amount of Federal credit 
instruments available for any aircraft purchase under this section to 
exceed--
          ``(1) 50 percent of the cost of the aircraft purchase; or
          ``(2) $100,000,000 for any single obligor.
  ``(h) Requirement.--Subject to subsection (i), no Federal credit 
instrument may be made under this section for the purchase of any 
regional jet aircraft that does not comply with the stage 3 noise 
levels of part 36 of title 14 of the Code of Federal Regulations, as in 
effect on January 1, 1999.
  ``(i) Other Limitations.--No Federal credit instrument shall be made 
by the Secretary under this section for the purchase of a regional jet 
aircraft unless the commuter air carrier or new entrant air carrier 
enters into a legally binding agreement that requires the carrier to 
provide scheduled passenger air transportation to the underserved 
market for which the aircraft is purchased for a period of not less 
than 36 consecutive months after the date that aircraft is placed in 
service.

``Sec. 41764. Use of Federal facilities and assistance

  ``(a) Use of Federal Facilities.--To permit the Secretary of 
Transportation to make use of such expert advice and services as the 
Secretary may require in carrying out this subchapter, the Secretary 
may use available services and facilities of other agencies and 
instrumentalities of the United States Government--
          ``(1) with the consent of the appropriate Federal officials; 
        and
          ``(2) on a reimbursable basis.
  ``(b) Assistance.--The head of each appropriate department or agency 
of the United States Government shall exercise the duties and powers of 
that head in such manner as to assist in carrying out the policy 
specified in section 41761.
  ``(c) Oversight.--The Secretary shall make available to the 
Comptroller General of the United States such information with respect 
to any Federal credit instrument made under this subchapter as the 
Comptroller General may require to carry out the duties of the 
Comptroller General under chapter 7 of title 31.

``Sec. 41765. Administrative expenses

  ``In carrying out this subchapter, the Secretary shall use funds made 
available by appropriations to the Department of Transportation for the 
purpose of administration, in addition to the proceeds of any fees 
collected under this subchapter, to cover administrative expenses of 
the Federal credit instrument program under this subchapter.

``Sec. 41766. Funding

  ``Of the amounts appropriated under section 106(k) for each of fiscal 
years 2001 through 2004, such sums as may be necessary may be used to 
carry out this subchapter, including administrative expenses.

``Sec. 41767. Termination

  ``(a) Authority To Issue Federal Credit Instruments.--The authority 
of the Secretary of Transportation to issue Federal credit instruments 
under section 41763 shall terminate on the date that is 5 years after 
the date of the enactment of this subchapter.
  ``(b) Continuation of Authority To Administer Program for Existing 
Federal Credit Instruments.--On and after the termination date, the 
Secretary shall continue to administer the program established under 
this subchapter for Federal credit instruments issued under this 
subchapter before the termination date until all obligations associated 
with such instruments have been satisfied.''.
  (b) Conforming Amendment.--The analysis for chapter 417 is amended by 
adding at the end the following:

        ``SUBCHAPTER III--REGIONAL AIR SERVICE INCENTIVE PROGRAM

``Sec.
``41761. Purpose.
``41762. Definitions.
``41763. Federal credit instruments.
``41764. Use of Federal facilities and assistance.
``41765. Administrative expenses.
``41766. Funding.
``41767. Termination.''.

                    TITLE III--FAA MANAGEMENT REFORM

SEC. 301. AIR TRAFFIC CONTROL SYSTEM DEFINED.

  Section 40102(a) is amended--
          (1) by redesignating paragraphs (5) through (41) as 
        paragraphs (6) through (42), respectively; and
          (2) by inserting after paragraph (4) the following:
          ``(5) `air traffic control system' means the combination of 
        elements used to safely and efficiently monitor, direct, 
        control, and guide aircraft in the United States and United 
        States-assigned airspace, including--
                  ``(A) allocated electromagnetic spectrum and 
                physical, real, personal, and intellectual property 
                assets making up facilities, equipment, and systems 
                employed to detect, track, and guide aircraft movement;
                  ``(B) laws, regulations, orders, directives, 
                agreements, and licenses;
                  ``(C) published procedures that explain required 
                actions, activities, and techniques used to ensure 
                adequate aircraft separation; and
                  ``(D) trained personnel with specific technical 
                capabilities to satisfy the operational, engineering, 
                management, and planning requirements for air traffic 
                control.''.

SEC. 302. AIR TRAFFIC CONTROL OVERSIGHT BOARD.

  (a) Establishment.--
          (1) In general.--Chapter 1 is amended by adding at the end 
        the following:

``Sec. 113. Air Traffic Control Oversight Board

  ``(a) Establishment.--There is established within the Department of 
Transportation an `Air Traffic Control Oversight Board' (in this 
section referred to as the `Oversight Board').
  ``(b) Membership.--
          ``(1) Composition.--The Oversight Board shall be composed of 
        9 members, as follows:
                  ``(A) Six members shall be individuals who are not 
                otherwise Federal officers or employees and who are 
                appointed by the President, by and with the advice and 
                consent of the Senate.
                  ``(B) One member shall be the Secretary of 
                Transportation or, if the Secretary so designates, the 
                Deputy Secretary of the Transportation.
                  ``(C) One member shall be the Administrator of the 
                Federal Aviation Administration.
                  ``(D) One member shall be an individual who is 
                appointed by the President, by and with the advice and 
                consent of the Senate, from among individuals who are 
                the leaders of their respective unions of air traffic 
                control system employees.
          ``(2) Qualifications and terms.--
                  ``(A) Qualifications.--Members of the Oversight Board 
                described in paragraph (1)(A) shall--
                          ``(i) have a fiduciary responsibility to 
                        represent the public interest;
                          ``(ii) be citizens of the United States; and
                          ``(iii) be appointed without regard to 
                        political affiliation and solely on the basis 
                        of their professional experience and expertise 
                        in 1 or more of the following areas:
                                  ``(I) Management of large service 
                                organizations.
                                  ``(II) Customer service.
                                  ``(III) Management of large 
                                procurements.
                                  ``(IV) Information and communications 
                                technology.
                                  ``(V) Organizational development.
                                  ``(VI) Labor relations.
                At least 3 members of the Oversight Board appointed 
                under paragraph (1)(A) should have knowledge of, or a 
                background in, aviation. At least one of such members 
                should have a background in managing large 
                organizations successfully. In the aggregate, such 
                members should collectively bring to bear expertise in 
                all of the areas described in subclauses (I) through 
                (VI) of clause (iii).
                  ``(B) Prohibitions.--No member of the Oversight Board 
                described in paragraph (1)(A) may--
                          ``(i) have a pecuniary interest in, or own 
                        stock in or bonds of, an aviation or 
                        aeronautical enterprise;
                          ``(ii) engage in another business related to 
                        aviation or aeronautics; or
                          ``(iii) be a member of any organization that 
                        engages, as a substantial part of its 
                        activities, in activities to influence 
                        aviation-related legislation.
                  ``(C) Terms for air traffic control 
                representatives.--A member appointed under paragraph 
                (1)(D) shall be appointed for a term of 3 years, except 
                that the term of such individual shall end whenever the 
                individual no longer meets the requirements of 
                paragraph (1)(D).
                  ``(D) Terms for nonfederal officers or employees.--A 
                member appointed under paragraph (1)(A) shall be 
                appointed for a term of 5 years, except that of the 
                members first appointed under paragraph (1)(A)--
                          ``(i) 2 members shall be appointed for a term 
                        of 3 years;
                          ``(ii) 2 members shall be appointed for a 
                        term of 4 years; and
                          ``(iii) 2 members shall be appointed for a 
                        term of 5 years.
                  ``(E) Reappointment.--An individual may not be 
                appointed under paragraph (1)(A) to more than two 5-
                year terms on the Oversight Board.
                  ``(F) Vacancy.--Any vacancy on the Oversight Board 
                shall be filled in the same manner as the original 
                appointment. 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 for the remainder of that term.
          ``(3) Ethical considerations.--
                  ``(A) Financial disclosure.--During the entire period 
                that an individual appointed under subparagraph (A) or 
                (D) of paragraph (1) is a member of the Oversight 
                Board, such individual shall be treated as serving as 
                an officer or employee referred to in section 101(f) of 
                the Ethics in Government Act of 1978 for purposes of 
                title I of such Act, except that section 101(d) of such 
                Act shall apply without regard to the number of days of 
                service in the position.
                  ``(B) Restrictions on post-employment.--For purposes 
                of section 207(c) of title 18, an individual appointed 
                under subparagraph (A) or (D) of paragraph (1) shall be 
                treated as an employee referred to in section 
                207(c)(2)(A)(i) of such title during the entire period 
                the individual is a member of the Board, except that 
                subsections (c)(2)(B) and (f) of section 207 of such 
                title shall not apply.
                  ``(C) Waiver.--At the time the President nominates an 
                individual for appointment as a member of the Oversight 
                Board under paragraph (1)(D), the President may waive 
                for the term of the member any appropriate provision of 
                chapter 11 of title 18, to the extent such waiver is 
                necessary to allow the member to participate in the 
                decisions of the Board while continuing to serve as a 
                full-time Federal employee or a representative of 
                employees. Any such waiver shall not be effective unless 
                a written intent of waiver to exempt such member (and 
                actual waiver language) is submitted to the Senate with 
                the nomination of such member.
          ``(4) Quorum.--Five members of the Oversight Board shall 
        constitute a quorum. A majority of members present and voting 
        shall be required for the Oversight Board to take action.
          ``(5) Removal.--Any member of the Oversight Board appointed 
        under subparagraph (A) or (D) of paragraph (1) may be removed 
        for cause by the President.
          ``(6) Claims.--
                  ``(A) In general.--A member of the Oversight Board 
                appointed under subparagraph (A) or (D) of paragraph 
                (1) shall have no personal liability under Federal law 
                with respect to any claim arising out of or resulting 
                from an act or omission by such member within the scope 
                of service as a member of the Oversight Board.
                  ``(B) Effect on other law.--This paragraph shall not 
                be construed--
                          ``(i) to affect any other immunity or 
                        protection that may be available to a member of 
                        the Oversight Board under applicable law with 
                        respect to such transactions;
                          ``(ii) to affect any other right or remedy 
                        against the United States under applicable law; 
                        or
                          ``(iii) to limit or alter in any way the 
                        immunities that are available under applicable 
                        law for Federal officers and employees.
  ``(c) General Responsibilities.--
          ``(1) Oversight.--The Oversight Board shall oversee the 
        Federal Aviation Administration in its administration, 
        management, conduct, direction, and supervision of the air 
        traffic control system.
          ``(2) Confidentiality.--The Oversight Board shall ensure that 
        appropriate confidentiality is maintained in the exercise of 
        its duties.
  ``(d) Specific Responsibilities.--The Oversight Board shall have the 
following specific responsibilities:
          ``(1) Strategic plans.--To review, approve, and monitor 
        achievements under a strategic plan of the Federal Aviation 
        Administration for the air traffic control system, including 
        the establishment of--
                  ``(A) a mission and objectives;
                  ``(B) standards of performance relative to such 
                mission and objectives, including safety, efficiency, 
                and productivity; and
                  ``(C) annual and long-range strategic plans.
          ``(2) Modernization and improvement.--To review and approve--
                  ``(A) methods of the Federal Aviation Administration 
                to accelerate air traffic control modernization and 
                improvements in aviation safety related to air traffic 
                control; and
                  ``(B) procurements of air traffic control equipment 
                by the Federal Aviation Administration in excess of 
                $100,000,000.
          ``(3) Operational plans.--To review the operational functions 
        of the Federal Aviation Administration, including--
                  ``(A) plans for modernization of the air traffic 
                control system;
                  ``(B) plans for increasing productivity or 
                implementing cost-saving measures; and
                  ``(C) plans for training and education.
          ``(4) Management.--To--
                  ``(A) review and approve the Administrator's 
                appointment of a Chief Operating Officer under section 
                106(r);
                  ``(B) review the Administrator's selection, 
                evaluation, and compensation of senior executives of 
                the Federal Aviation Administration who have program 
                management responsibility over significant functions of 
                the air traffic control system;
                  ``(C) review and approve the Administrator's plans 
                for any major reorganization of the Federal Aviation 
                Administration that would impact on the management of 
                the air traffic control system;
                  ``(D) review and approve the Administrator's cost 
                accounting and financial management structure and 
                technologies to help ensure efficient and cost-
                effective air traffic control operation; and
                  ``(E) review the performance and cooperation of 
                managers responsible for major acquisition projects, 
                including the ability of the managers to meet schedule 
                and budget targets.
          ``(5) Budget.--To--
                  ``(A) review and approve the budget request of the 
                Federal Aviation Administration related to the air 
                traffic control system prepared by the Administrator;
                  ``(B) submit such budget request to the Secretary of 
                Transportation; and
                  ``(C) ensure that the budget request supports the 
                annual and long-range strategic plans.
The Secretary shall submit the budget request referred to in paragraph 
(5)(B) for any fiscal year to the President who shall submit such 
request, without revision, to the Committees on Transportation and 
Infrastructure and Appropriations of the House of Representatives and 
the Committees on Commerce, Science, and Transportation and 
Appropriations of the Senate, together with the President's annual 
budget request for the Federal Aviation Administration for such fiscal 
year.
  ``(e) Reporting of Overturning of Board Decisions.--If the Secretary 
or Administrator overturns a decision of the Oversight Board, the 
Secretary or Administrator, as appropriate shall report such action to 
the President, the Committee on Transportation and Infrastructure of 
the House of Representatives, and the Committee on Commerce, Science, 
and Transportation of the Senate.
  ``(f) Board Personnel Matters.--
          ``(1) Compensation of members.--
                  ``(A) In general.--Each member of the Oversight Board 
                who--
                          ``(i) appointed under subsection (b)(1)(A); 
                        or
                          ``(ii) appointed under subsection (b)(1)(D) 
                        and is not otherwise a Federal officer or 
                        employee,
                shall be compensated at a rate of $30,000 per year. All 
                other members shall serve without compensation for such 
                service.
                  ``(B) Chairperson.--Notwithstanding subparagraph (A), 
                the chairperson of the Oversight Board shall be 
                compensated at a rate of $50,000 per year.
          ``(2) Travel expenses.--
                  ``(A) In general.--The members of the Oversight Board 
                shall be allowed travel expenses, including per diem in 
                lieu of subsistence, at rates authorized for employees 
                of agencies under subchapter I of chapter 57 of title 
                5, to attend meetings of the Oversight Board and, with 
                the advance approval of the chairperson of the 
                Oversight Board, while otherwise away from their homes 
                or regular places of business for purposes of duties as 
                a member of the Oversight Board.
                  ``(B) Report.--The Oversight Board shall include in 
                its annual report under subsection (g)(3)(A) 
                information with respect to the travel expenses allowed 
                for members of the Oversight Board under this 
                paragraph.
          ``(3) Staff.--
                  ``(A) In general.--The chairperson of the Oversight 
                Board may appoint and terminate any personnel that may 
                be necessary to enable the Board to perform its duties.
                  ``(B) Detail of government employees.--Upon request 
                of the chairperson of the Oversight Board, a Federal 
                agency shall detail a United States Government employee 
                to the Oversight Board without reimbursement. Such 
                detail shall be without interruption or loss of civil 
                service status or privilege.
          ``(4) Procurement of temporary and intermittent services.--
        The chairperson of the Oversight Board may procure temporary 
        and intermittent services under section 3109(b) of title 5.
  ``(g) Administrative Matters.--
          ``(1) Chair.--
                  ``(A) Term.--The members of the Oversight Board shall 
                elect for a 2-year term a chairperson from among the 
                members appointed under subsection (b)(1)(A).
                  ``(B) Powers.--Except as otherwise provided by a 
                majority vote of the Oversight Board, the powers of the 
                chairperson shall include--
                          ``(i) establishing committees;
                          ``(ii) setting meeting places and times;
                          ``(iii) establishing meeting agendas; and
                          ``(iv) developing rules for the conduct of 
                        business.
          ``(2) Meetings.--The Oversight Board shall meet at least 
        quarterly and at such other times as the chairperson determines 
        appropriate.
          ``(3) Reports.--
                  ``(A) Annual.--The Oversight Board shall each year 
                report with respect to the conduct of its 
                responsibilities under this title to the President, the 
                Committee on Transportation and Infrastructure of the 
                House of Representatives, and the Committee on 
                Commerce, Science, and Transportation of the Senate.
                  ``(B) Additional report.--Upon a determination by the 
                Oversight Board under subsection (c)(1) that the 
                organization and operation of the Federal Aviation 
                Administration's air traffic control system are not 
                allowing the Federal Aviation Administration to carry 
                out its mission, the Oversight Board shall report such 
                determination to the Committee on Transportation and 
                Infrastructure of the House of Representatives and the 
                Committee on Commerce, Science, and Transportation of 
                the Senate.
                  ``(C) Comptroller general's report.--Not later than 
                April 30, 2004, the Comptroller General of the United 
                States shall transmit 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 on the 
                success of the Oversight Board in improving the 
                performance of the air traffic control system.''.
          (2) Conforming amendment.--The analysis for chapter 1 is 
        amended by adding at the end the following:

``113. Air Traffic Control Oversight Board.''.

  (b) Effective Dates.--
          (1) In general.--The amendments made by this section shall 
        take effect on the date of enactment of this Act.
          (2) Initial nominations to air traffic control oversight 
        board.--The President shall submit the initial nominations of 
        the air traffic control oversight board to the Senate not later 
        than 3 months after the date of enactment of this Act.
          (3) Effect on actions prior to appointment of oversight 
        board.--Nothing in this section shall be construed to 
        invalidate the actions and authority of the Federal Aviation 
        Administration prior to the appointment of the members of the 
        Air Traffic Control Oversight Board.

SEC. 303. CHIEF OPERATING OFFICER.

  Section 106 is amended by adding at the end the following:
  ``(r) Chief Operating Officer.--
          ``(1) In general.--
                  ``(A) Appointment.--There shall be a Chief Operating 
                Officer for the air traffic control system to be 
                appointed by the Administrator, with approval of the 
                Air Traffic Control Oversight Board established by 
                section 113. The Chief Operating Officer shall report 
                directly to the Administrator and shall be subject to 
                the authority of the Administrator.
                  ``(B) Qualifications.--The Chief Operating Officer 
                shall have a demonstrated ability in management and 
                knowledge of or experience in aviation.
                  ``(C) Term.--The Chief Operating Officer shall be 
                appointed for a term of 5 years.
                  ``(D) Removal.--The Chief Operating Officer shall 
                serve at the pleasure of the Administrator, except that 
                the Administrator shall make every effort to ensure 
                stability and continuity in the leadership of the air 
                traffic control system.
                  ``(E) Vacancy.--Any individual appointed to fill a 
                vacancy in the position of Chief Operating Officer 
                occurring before the expiration of the term for which 
                the individual's predecessor was appointed shall be 
                appointed for the remainder of that term.
          ``(2) Annual performance agreement.--The Administrator and 
        the Chief Operating Officer, in consultation with the Air 
        Traffic Control Oversight Board, shall enter into an annual 
        performance agreement that sets forth measurable organization 
        and individual goals for the Chief Operating Officer in key 
        operational areas. The agreement shall be subject to review and 
        renegotiation on an annual basis.
          ``(3) Annual performance report.--The Chief Operating Officer 
        shall prepare and submit to the Secretary of Transportation and 
        Congress an annual management report containing such 
        information as may be prescribed by the Secretary.''.

SEC. 304. FEDERAL AVIATION MANAGEMENT ADVISORY COUNCIL.

  (a) Membership.--Section 106(p)(2)(C) is amended to read as follows:
                  ``(C) 13 members representing aviation interests, 
                appointed by--
                          ``(i) in the case of initial appointments to 
                        the Council, the President by and with the 
                        advice and consent of the Senate; and
                          ``(ii) in the case of subsequent appointments 
                        to the Council, the Secretary of 
                        Transportation.''.
  (b) Terms of Members.--Section 106(p)(6)(A)(i) is amended by striking 
``by the President''.

SEC. 305. ENVIRONMENTAL STREAMLINING.

  (a) Coordinated Environmental Review Process.--
          (1) Development and implementation.--The Secretary shall 
        develop and implement a coordinated environmental review 
        process for aviation infrastructure projects that require--
                  (A) the preparation of an environmental impact 
                statement or environmental assessment under the 
                National Environmental Policy Act of 1969 (42 U.S.C. 
                4321 et seq.), except that the Secretary may decide not 
                to apply this section to the preparation of an 
                environmental assessment under such Act; or
                  (B) the conduct of any other environmental review, 
                analysis, opinion, or issuance of an environmental 
                permit, license, or approval by operation of Federal 
                law.
          (2) Memorandum of understanding.--
                  (A) In general.--The coordinated environmental review 
                process for each project shall ensure that, whenever 
                practicable (as specified in this section), all 
                environmental reviews, analyses, opinions, and any 
                permits, licenses, or approvals that must be issued or 
                made by any Federal agency for the project concerned 
                shall be conducted concurrently and completed within a 
                cooperatively determined time period. Such process for 
                a project or class of project may be incorporated into 
                a memorandum of understanding between the Department of 
                Transportation and Federal agencies (and, where 
                appropriate, State agencies).
                  (B) Establishment of time periods.--In establishing 
                the time period referred to in subparagraph (A), and 
                any time periods for review within such period, the 
                Department and all such agencies shall take into 
                account their respective resources and statutory 
                commitments.
  (b) Elements of Coordinated Environmental Review Process.--For each 
project, the coordinated environmental review process established under 
this section shall provide, at a minimum, for the following elements:
          (1) Federal agency identification.--The Secretary shall, at 
        the earliest possible time, identify all potential Federal 
        agencies that--
                  (A) have jurisdiction by law over environmental-
                related issues that may be affected by the project and 
                the analysis of which would be part of any 
                environmental document required by the National 
                Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
                seq.); or
                  (B) may be required by Federal law to independently--
                          (i) conduct an environmental-related review 
                        or analysis; or
                          (ii) determine whether to issue a permit, 
                        license, or approval or render an opinion on 
                        the environmental impact of the project.
          (2) Time limitations and concurrent review.--The Secretary 
        and the head of each Federal agency identified under paragraph 
        (1)--
                  (A)(i) shall jointly develop and establish time 
                periods for review for--
                          (I) all Federal agency comments with respect 
                        to any environmental review documents required 
                        by the National Environmental Policy Act of 
                        1969 (42 U.S.C. 4321 et seq.) for the project; 
                        and
                          (II) all other independent Federal agency 
                        environmental analyses, reviews, opinions, and 
                        decisions on any permits, licenses, and 
                        approvals that must be issued or made for the 
                        project;
                whereby each such Federal agency's review shall be 
                undertaken and completed within such established time 
                periods for review; or
                  (ii) may enter into an agreement to establish such 
                time periods for review with respect to a class of 
                project; and
                  (B) shall ensure, in establishing such time periods 
                for review, that the conduct of any such analysis, 
                review, opinion, and decision is undertaken 
                concurrently with all other environmental reviews for 
                the project, including the reviews required by the 
                National Environmental Policy Act of 1969 (42 U.S.C. 
                4321 et seq.); except that such review may not be 
                concurrent if the affected Federal agency can 
                demonstrate that such concurrent review would result in 
                a significant adverse impact to the environment or 
                substantively alter the operation of Federal law or 
                would not be possible without information developed as 
                part of the environmental review process.
          (3) Factors to be considered.--Time periods for review 
        established under this section shall be consistent with the 
        time periods established by the Council on Environmental 
        Quality under sections 1501.8 and 1506.10 of title 40, Code of 
        Federal Regulations.
          (4) Extensions.--The Secretary shall extend any time periods 
        for review under this section if, upon good cause shown, the 
        Secretary and any Federal agency concerned determine that 
        additional time for analysis and review is needed as a result 
        of new information that has been discovered that could not 
        reasonably have been anticipated when the Federal agency's time 
        periods for review were established. Any memorandum of 
        understanding shall be modified to incorporate any mutually 
        agreed-upon extensions.
  (c) Dispute Resolution.--When the Secretary determines that a Federal 
agency which is subject to a time period for its environmental review 
or analysis under this section has failed to complete such review, 
analysis, opinion, or decision on issuing any permit, license, or 
approval within the established time period or within any agreed-upon 
extension to such time period, the Secretary may, after notice and 
consultation with such agency, close the record on the matter before 
the Secretary. If the Secretary finds, after timely compliance with 
this section, that an environmental issue related to the project that 
an affected Federal agency has jurisdiction over by operation of 
Federal law has not been resolved, the Secretary and the head of the 
Federal agency shall resolve the matter not later than 30 days after 
the date of the finding by the Secretary.
  (d) Participation of State Agencies.--For any project eligible for 
assistance under chapter 471 of title 49, United States Code, a State, 
by operation of State law, may require that all State agencies that 
have jurisdiction by State or Federal law over environmental-related 
issues that may be affected by the project, or that are required to 
issue any environmental-related reviews, analyses, opinions, or 
determinations on issuing any permits, licenses, or approvals for the 
project, be subject to the coordinated environmental review process 
established under this section unless the Secretary determines that a 
State's participation would not be in the public interest. For a State 
to require State agencies to participate in the review process, all 
affected agencies of the State shall be subject to the review process.
  (e) Assistance to Affected Federal Agencies.--
          (1) In general.--The Secretary may approve a request by a 
        State or other recipient of assistance under chapter 471 of 
        title 49, United States Code, to provide funds made available 
        from the Airport and Airway Trust Fund to the State or 
        recipient for an aviation project subject to the coordinated 
        environmental review process established under this section to 
        affected Federal agencies to provide the resources necessary to 
        meet any time limits established under this section.
          (2) Amounts.--Such requests under paragraph (1) shall be 
        approved only--
                  (A) for the additional amounts that the Secretary 
                determines are necessary for the affected Federal 
                agencies to meet the time limits for environmental 
                review; and
                  (B) if such time limits are less than the customary 
                time necessary for such review.
  (f) Judicial Review and Savings Clause.--
          (1) Judicial review.--Nothing in this section shall affect 
        the reviewability of any final Federal agency action in a court 
        of the United States or in the court of any State.
          (2) Savings clause.--Nothing in this section shall affect the 
        applicability of the National Environmental Policy Act of 1969 
        (42 U.S.C. 4321 et seq.) or any other Federal environmental 
        statute or affect the responsibility of any Federal officer to 
        comply with or enforce any such statute.
  (g) Federal Agency Defined.--In this section, the term ``Federal 
agency'' means any Federal agency or any State agency carrying out 
affected responsibilities required by operation of Federal law.

SEC. 306. CLARIFICATION OF REGULATORY APPROVAL PROCESS.

  Section 106(f)(3)(B)(i) is amended--
          (1) by striking ``$100,000,000'' each place it appears and 
        inserting ``$250,000,000'';
          (2) by striking ``Air Traffic Management System Performance 
        Improvement Act of 1996'' and inserting ``Aviation Investment 
        and Reform Act for the 21st Century'';
          (3) in subclause (I)--
                  (A) by inserting ``substantial and'' before 
                ``material''; and
                  (B) by inserting ``or'' after the semicolon at the 
                end; and
          (4) by striking subclauses (II), (III), and (IV) and 
        inserting the following:
                          ``(II) raise novel or significant legal or 
                        policy issues arising out of legal mandates 
                        that may substantially and materially affect 
                        other transportation modes.''.

SEC. 307. INDEPENDENT STUDY OF FAA COSTS AND ALLOCATIONS.

  (a) Independent Assessment.--
          (1) In general.--The Inspector General of the Department of 
        Transportation shall conduct the assessments described in this 
        section. To conduct the assessments, the Inspector General may 
        use the staff and resources of the Inspector General or 
        contract with 1 or more independent entities.
          (2) Assessment of adequacy and accuracy of faa cost data and 
        attributions.--
                  (A) In general.--The Inspector General shall conduct 
                an assessment to ensure that the method for calculating 
                the overall costs of the Federal Aviation 
                Administration and attributing such costs to specific 
                users is appropriate, reasonable, and understandable to 
                the users.
                  (B) Components.--In conducting the assessment under 
                this paragraph, the Inspector General shall assess the 
                following:
                          (i) The Federal Aviation Administration's 
                        cost input data, including the reliability of 
                        the Federal Aviation Administration's source 
                        documents and the integrity and reliability of 
                        the Federal Aviation Administration's data 
                        collection process.
                          (ii) The Federal Aviation Administration's 
                        system for tracking assets.
                          (iii) The Federal Aviation Administration's 
                        bases for establishing asset values and 
                        depreciation rates.
                          (iv) The Federal Aviation Administration's 
                        system of internal controls for ensuring the 
                        consistency and reliability of reported data.
                          (v) The Federal Aviation Administration's 
                        definition of the services to which the Federal 
                        Aviation Administration ultimately attributes 
                        its costs.
                          (vi) The cost pools used by the Federal 
                        Aviation Administration and the rationale for 
                        and reliability of the bases which the Federal 
                        Aviation Administration proposes to use in 
                        allocating costs of services to users.
                  (C) Requirements for assessment of cost pools.--In 
                carrying out subparagraph (B)(vi), the Inspector 
                General shall--
                          (i) review costs that cannot reliably be 
                        attributed to specific Federal Aviation 
                        Administration services or activities (called 
                        ``common and fixed costs'' in the Federal 
                        Aviation Administration Cost Allocation Study) 
                        and consider alternative methods for allocating 
                        such costs; and
                          (ii) perform appropriate tests to assess 
                        relationships between costs in the various cost 
                        pools and activities and services to which the 
                        costs are attributed by the Federal Aviation 
                        Administration.
          (3) Cost effectiveness.--
                  (A) In general.--The Inspector General shall assess 
                the progress of the Federal Aviation Administration in 
                cost and performance management, including use of 
                internal and external benchmarking in improving the 
                performance and productivity of the Federal Aviation 
                Administration.
                  (B) Annual reports.--Not later than December 31, 
                2000, and annually thereafter until December 31, 2004, 
                the Inspector General shall transmit to Congress an 
                updated report containing the results of the assessment 
                conducted under this paragraph.
                  (C) Information to be included in faa financial 
                report.--The Administrator shall include in the annual 
                financial report of the Federal Aviation Administration 
                information on the performance of the Administration 
                sufficient to permit users and others to make an 
                informed evaluation of the progress of the 
                Administration in increasing productivity.
  (b) Funding.--Of the amounts appropriated pursuant to section 106(k) 
of title 49, United States Code, for fiscal year 2000, not to exceed 
$1,500,000 may be used to carry out this section.

                      TITLE IV--FAMILY ASSISTANCE

SEC. 401. RESPONSIBILITIES OF NATIONAL TRANSPORTATION SAFETY BOARD.

  (a) Prohibition on Unsolicited Communications.--
          (1) In general.--Section 1136(g)(2) is amended--
                  (A) by striking ``transportation,'' and inserting 
                ``transportation and in the event of an accident 
                involving a foreign air carrier that occurs within the 
                United States,'';
                  (B) by inserting after ``attorney'' the following: 
                ``(including any associate, agent, employee, or other 
                representative of an attorney)''; and
                  (C) by striking ``30th day'' and inserting ``45th 
                day''.
          (2) Enforcement.--Section 1151 is amended by inserting 
        ``1136(g)(2),'' before ``or 1155(a)'' each place it appears.
  (b) Prohibition on Actions To Prevent Mental Health and Counseling 
Services.--Section 1136(g) is amended by adding at the end the 
following:
          ``(3) Prohibition on actions to prevent mental health and 
        counseling services.--No State or political subdivision may 
        prevent the employees, agents, or volunteers of an organization 
        designated for an accident under subsection (a)(2) from 
        providing mental health and counseling services under 
        subsection (c)(1) in the 30-day period beginning on the date of 
        the accident. The director of family support services 
        designated for the accident under subsection (a)(1) may extend 
        such period for not to exceed an additional 30 days if the 
        director determines that the extension is necessary to meet the 
        needs of the families and if State and local authorities are 
        notified of the determination.''.
  (c) Inclusion of Nonrevenue Passengers in Family Assistance 
Coverage.--Section 1136(h)(2) is amended to read as follows:
          ``(2) Passenger.--The term `passenger' includes--
                  ``(A) an employee of an air carrier or foreign air 
                carrier aboard an aircraft; and
                  ``(B) any other person aboard the aircraft without 
                regard to whether the person paid for the 
                transportation, occupied a seat, or held a reservation 
                for the flight.''.
  (d) Limitation on Statutory Construction.--Section 1136 is amended by 
adding at the end the following:
  ``(i) Limitation on Statutory Construction.--Nothing in this section 
may be construed as limiting the actions that an air carrier may take, 
or the obligations that an air carrier may have, in providing 
assistance to the families of passengers involved in an aircraft 
accident.''.

SEC. 402. AIR CARRIER PLANS.

  (a) Contents of Plans.--
          (1) Flight reservation information.--Section 41113(b) is 
        amended by adding at the end the following:
          ``(14) An assurance that, upon request of the family of a 
        passenger, the air carrier will inform the family of whether 
        the passenger's name appeared on a preliminary passenger 
        manifest for the flight involved in the accident.''.
          (2) Training of employees and agents.--Section 41113(b) is 
        further amended by adding at the end the following:
          ``(15) An assurance that the air carrier will provide 
        adequate training to the employees and agents of the carrier to 
        meet the needs of survivors and family members following an 
        accident.''.
          (3) Consultation on carrier response not covered by plan.--
        Section 41113(b) is further amended by adding at the end the 
        following:
          ``(16) An assurance that the air carrier, in the event that 
        the air carrier volunteers assistance to United States citizens 
        within the United States in the case of an aircraft accident 
        outside the United States involving major loss of life, the air 
        carrier will consult with the Board and the Department of State 
        on the provision of the assistance.''.
          (4) Submission of updated plans.--The amendments made by 
        paragraphs (1), (2), and (3) shall take effect on the 180th day 
        following the date of enactment of this Act. On or before such 
        180th day, each air carrier holding a certificate of public 
        convenience and necessity under section 41102 of title 49, 
        United States Code, shall submit to the Secretary of 
        Transportation and the Chairman of the National Transportation 
        Safety Board an updated plan under section 41113 of such title 
        that meets the requirement of the amendments made by paragraphs 
        (1), (2), and (3).
          (5) Conforming amendments.--Section 41113 is amended--
                  (A) in subsection (a) by striking ``Not later than 6 
                months after the date of the enactment of this section, 
                each air carrier'' and inserting ``Each air carrier''; 
                and
                  (B) in subsection (c) by striking ``After the date 
                that is 6 months after the date of the enactment of 
                this section, the Secretary'' and inserting ``The 
                Secretary''.
  (b) Limitation on Liability.--Section 41113(d) is amended by 
inserting ``, or in providing information concerning a flight 
reservation,'' before ``pursuant to a plan''.
  (c) Limitation on Statutory Construction.--Section 41113 is amended 
by adding at the end the following:
  ``(f) Limitation on Statutory Construction.--Nothing in this section 
may be construed as limiting the actions that an air carrier may take, 
or the obligations that an air carrier may have, in providing 
assistance to the families of passengers involved in an aircraft 
accident.''.

SEC. 403. FOREIGN AIR CARRIER PLANS.

  (a) Inclusion of Nonrevenue Passengers in Family Assistance 
Coverage.--Section 41313(a)(2) is amended to read as follows:
          ``(2) Passenger.--The term `passenger' has the meaning given 
        such term by section 1136 of this title.''.
  (b) Accidents for Which Plan Is Required.--Section 41313(b) is 
amended by striking ``significant'' and inserting ``major''.
  (c) Contents of Plans.--
          (1) In general.--Section 41313(c) is amended by adding at the 
        end the following:
          ``(15) Training of employees and agents.--An assurance that 
        the foreign air carrier will provide adequate training to the 
        employees and agents of the carrier to meet the needs of 
        survivors and family members following an accident.
          ``(16) Consultation on carrier response not covered by 
        plan.--An assurance that the foreign air carrier, in the event 
        that the foreign air carrier volunteers assistance to United 
        States citizens within the United States in the case of an 
        aircraft accident outside the United States involving major 
        loss of life, the foreign air carrier will consult with the 
        Board and the Department of State on the provision of the 
        assistance.''.
          (2) Submission of updated plans.--The amendment made by 
        paragraph (1) shall take effect on the 180th day following the 
        date of enactment of this Act. On or before such 180th day, 
        each foreign air carrier providing foreign air transportation 
        under chapter 413 of title 49, United States Code, shall submit 
        to the Secretary of Transportation and the Chairman of the 
        National Transportation Safety Board an updated plan under 
        section 41313 of such title that meets the requirement of the 
        amendment made by paragraph (1).

SEC. 404. APPLICABILITY OF DEATH ON THE HIGH SEAS ACT.

  (a) In General.--Section 40120(a) is amended by inserting 
``(including the Act entitled `An Act relating to the maintenance of 
actions for death on the high seas and other navigable waters', 
approved March 30, 1920, commonly known as the Death on the High Seas 
Act (46 U.S.C. App. 761-767; 41 Stat. 537-538))'' after ``United 
States''.
  (b) Applicability.--The amendment made by subsection (a) applies to 
civil actions commenced after the date of enactment of this Act and to 
civil actions that are not adjudicated by a court of original 
jurisdiction or settled on or before such date of enactment.

                            TITLE V--SAFETY

SEC. 501. CARGO COLLISION AVOIDANCE SYSTEMS DEADLINES.

  (a) In General.--The Administrator shall require by regulation that, 
no later than December 31, 2002, equipment be installed, on each cargo 
aircraft with a maximum certificated takeoff weight in excess of 15,000 
kilograms, that provides protection from mid-air collisions using 
technology that provides--
          (1) cockpit based collision detection and conflict resolution 
        guidance, including display of traffic; and
          (2) a margin of safety of at least the same level as provided 
        by the collision avoidance system known as TCAS-II.
  (b) Extension of Deadline.--The Administrator may extend the deadline 
established by subsection (a) by not more than 2 years if the 
Administrator finds that the extension is needed to promote--
          (1) a safe and orderly transition to the operation of a fleet 
        of cargo aircraft equipped with collision avoidance equipment; 
        or
          (2) other safety or public interest objectives.

SEC. 502. RECORDS OF EMPLOYMENT OF PILOT APPLICANTS.

  Section 44936(f) is amended--
          (1) in paragraph (1)(B) by inserting ``(except a branch of 
        the United States Armed Forces, the National Guard, or a 
        reserve component of the United States Armed Forces)'' after 
        ``person'' the first place it appears;
          (2) in paragraph (1)(B)(ii) by striking ``individual'' the 
        first place it appears and inserting ``individual's performance 
        as a pilot'';
          (3) in paragraph (14)(B) by inserting ``or from a foreign 
        government or entity that employed the individual'' after 
        ``exists''; and
          (4) by adding at the end the following:
          ``(15) Electronic access to faa records.--For the purpose of 
        increasing timely and efficient access to Federal Aviation 
        Administration records described in paragraph (1), the 
        Administrator may allow, under terms established by the 
        Administrator, a designated individual to have electronic 
        access to a specified database containing information about 
        such records.''.

SEC. 503. WHISTLEBLOWER PROTECTION FOR FAA EMPLOYEES.

  Section 347(b)(1) of the Department of Transportation and Related 
Agencies Appropriations Act, 1996 (49 U.S.C. 106 note; 109 Stat. 460) 
is amended by inserting before the semicolon at the end the following: 
``, including the provisions for investigation and enforcement as 
provided in chapter 12 of title 5, United States Code''.

SEC. 504. SAFETY RISK MITIGATION PROGRAMS.

  Section 44701 is further amended by adding at the end the following:
  ``(g) Safety Risk Management Program Guidelines.--The Administrator 
shall issue guidelines and encourage the development of air safety risk 
mitigation programs throughout the aviation industry, including self-
audits and self-disclosure programs.''.

SEC. 505. FLIGHT OPERATIONS QUALITY ASSURANCE RULES.

  Not later than 30 days after the date of enactment of this Act, the 
Administrator shall issue a notice of proposed rulemaking to develop 
procedures to protect air carriers and their employees from civil 
enforcement actions under the program known as Flight Operations 
Quality Assurance. Not later than 1 year after the last day of the 
period for public comment provided for in the notice of proposed 
rulemaking, the Administrator shall issue a final rule establishing 
such procedures.

SEC. 506. SMALL AIRPORT CERTIFICATION.

  Not later than 60 days after the date of enactment of this Act, the 
Administrator shall issue a notice of proposed rulemaking on 
implementing section 44706(a)(2) of title 49, United States Code, 
relating to issuance of airport operating certificates for small 
scheduled passenger air carrier operations. Not later than 1 year after 
the last day of the period for public comment provided for in the 
notice of proposed rulemaking, the Administrator shall issue a final 
rule on implementing such program.

SEC. 507. LIFE-LIMITED AIRCRAFT PARTS.

  (a) In General.--Chapter 447 is amended by adding at the end the 
following:

``Sec. 44725. Life-limited aircraft parts

  ``(a) In General.--The Administrator of the Federal Aviation 
Administration shall conduct a rulemaking proceeding to require the 
safe disposition of life-limited parts removed from an aircraft. The 
rulemaking proceeding shall ensure that the disposition deter 
installation on an aircraft of a life-limited part that has reached or 
exceeded its life limits.
  ``(b) Safe Disposition.--For the purposes of this section, safe 
disposition includes any of the following methods:
          ``(1) The part may be segregated under circumstances that 
        preclude its installation on an aircraft.
          ``(2) The part may be permanently marked to indicate its used 
        life status.
          ``(3) The part may be destroyed in any manner calculated to 
        prevent reinstallation in an aircraft.
          ``(4) The part may be marked, if practicable, to include the 
        recordation of hours, cycles, or other airworthiness 
        information. If the parts are marked with cycles or hours of 
        usage, that information must be updated when the part is 
        retired from service.
          ``(5) Any other method approved by the Administrator.
  ``(c) Deadlines.--In conducting the rulemaking proceeding under 
subsection (a), the Administrator shall--
          ``(1) not later than 180 days after the date of enactment of 
        this section, issue a notice of proposed rulemaking; and
          ``(2) not later than 180 days after the close of the comment 
        period on the proposed rule, issue a final rule.
  ``(d) Prior-Removed Life-Limited Parts.--No rule issued under 
subsection (a) shall require the marking of parts removed before the 
effective date of the rules issued under subsection (a), nor shall any 
such rule forbid the installation of an otherwise airworthy life-
limited part.''.
  (b) Civil Penalty.--Section 46301(a)(3) is amended--
          (1) in subparagraph (A) by striking ``or'' at the end;
          (2) in subparagraph (B) by striking the period at the end and 
        inserting a semicolon; and
          (3) by adding at the end the following:
          ``(C) a violation of section 44725, relating to the safe 
        disposal of life-limited aircraft parts; or''.
  (c) Conforming Amendment.--The analysis for chapter 447 is further 
amended by adding at the end the following:

``44725. Life-limited aircraft parts.''.

SEC. 508. FAA MAY FINE UNRULY PASSENGERS.

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

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

  ``An individual who interferes with the duties or responsibilities of 
the flight crew or cabin crew of a civil aircraft, or who poses an 
imminent threat to the safety of the aircraft or other individuals on 
the aircraft, is liable to the United States Government for a civil 
penalty of not more than $25,000.''.
  (b) Compromise and Setoff.--Section 46301(f)(1)(A)(i) is amended by 
inserting ``46316,'' before ``or 47107(b)''.
  (c) Conforming Amendment.--The analysis for chapter 463 is amended by 
striking the item relating to section 46316 and inserting after the 
item relating to section 46315 the following:

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

SEC. 509. REPORT ON AIR TRANSPORTATION OVERSIGHT SYSTEM.

  Not later than March 1, 2000, and annually thereafter for the next 5 
years, the Administrator shall transmit 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 on the progress of the Federal Aviation Administration in 
implementing the air transportation oversight system. At a minimum, the 
report shall indicate--
          (1) any funding or staffing constraints that would adversely 
        impact the Administration's ability to fully develop and 
        implement such system;
          (2) progress in integrating the aviation safety data derived 
        from such system's inspections with existing aviation data of 
        the Administration in the safety performance analysis system of 
        the Administration; and
          (3) the Administration's efforts in collaboration with the 
        aviation industry to develop and validate safety performance 
        measures and appropriate risk weightings for the air 
        transportation oversight system.

SEC. 510. AIRPLANE EMERGENCY LOCATORS.

  (a) Requirement.--Section 44712(b) is amended to read as follows:
  ``(b) Nonapplication.--Subsection (a) does not apply to--
          ``(1) aircraft when used in scheduled flights by scheduled 
        air carriers holding certificates issued by the Secretary of 
        Transportation under subpart II of this part;
          ``(2) aircraft when used in training operations conducted 
        entirely within a 50-mile radius of the airport from which the 
        training operations begin;
          ``(3) aircraft when used in flight operations related to the 
        design and testing, manufacture, preparation, and delivery of 
        aircraft;
          ``(4) aircraft when used in research and development if the 
        aircraft holds a certificate from the Administrator of the 
        Federal Aviation Administration to carry out such research and 
        development;
          ``(5) aircraft when used in showing compliance with 
        regulations crew training, exhibition, air racing, or market 
        surveys;
          ``(6) aircraft when used in the aerial application of a 
        substance for an agricultural purpose;
          ``(7) aircraft with a maximum payload capacity of more than 
        7,500 pounds when used in air transportation; or
          ``(8) aircraft capable of carrying only one individual.''.
  (b) Compliance.--Section 44712 is amended by redesignating subsection 
(c) as subsection (d) and by inserting after subsection (b) the 
following:
  ``(c) Compliance.--An aircraft meets the requirement of subsection 
(a) if it is equipped with an emergency locator transmitter that 
transmits on the 121.5/243 megahertz frequency or the 406 megahertz 
frequency, or with other equipment approved by the Secretary for 
meeting the requirement of subsection (a).''.
  (c) Effective Date; Regulations.--
          (1) Regulations.--The Secretary of Transportation shall issue 
        regulations under section 44712(b) of title 49, United States 
        Code, as amended by this section not later than January 1, 
        2002.
          (2) Effective date.--The amendments made by this section 
        shall take effect on January 1, 2002.

                   TITLE VI--WHISTLEBLOWER PROTECTION

SEC. 601. PROTECTION OF EMPLOYEES PROVIDING AIR SAFETY INFORMATION.

  (a) General Rule.--Chapter 421 is amended by adding at the end the 
following:

           ``SUBCHAPTER III--WHISTLEBLOWER PROTECTION PROGRAM

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

  ``(a) Discrimination Against Airline Employees.--No air carrier or 
contractor or subcontractor of an air carrier may discharge an employee 
or otherwise discriminate against an employee with respect to 
compensation, terms, conditions, or privileges of employment because 
the employee (or any person acting pursuant to a request of the 
employee)--
          ``(1) provided, caused to be provided, or is about to provide 
        (with any knowledge of the employer) or cause to be provided to 
        the employer or Federal Government information relating to any 
        violation or alleged violation of any order, regulation, or 
        standard of the Federal Aviation Administration or any other 
        provision of Federal law relating to air carrier safety under 
        this subtitle or any other law of the United States;
          ``(2) has filed, caused to be filed, or is about to file 
        (with any knowledge of the employer) or cause to be filed a 
        proceeding relating to any violation or alleged violation of 
        any order, regulation, or standard of the Federal Aviation 
        Administration or any other provision of Federal law relating 
        to air carrier safety under this subtitle or any other law of 
        the United States;
          ``(3) testified or is about to testify in such a proceeding; 
        or
          ``(4) assisted or participated or is about to assist or 
        participate in such a proceeding.
  ``(b) Department of Labor Complaint Procedure.--
          ``(1) Filing and notification.--A person who believes that he 
        or she has been discharged or otherwise discriminated against 
        by any person in violation of subsection (a) may, not later 
        than 90 days after the date on which such violation occurs, 
        file (or have any person file on his or her behalf) a complaint 
        with the Secretary of Labor alleging such discharge or 
        discrimination. Upon receipt of such a complaint, the Secretary 
        of Labor shall notify, in writing, the person named in the 
        complaint and the Administrator of the Federal Aviation 
        Administration of the filing of the complaint, of the 
        allegations contained in the complaint, of the substance of 
        evidence supporting the complaint, and of the opportunities 
        that will be afforded to such person under paragraph (2).
          ``(2) Investigation; preliminary order.--
                  ``(A) In general.--Not later than 60 days after the 
                date of receipt of a complaint filed under paragraph 
                (1) and after affording the person named in the 
                complaint an opportunity to submit to the Secretary of 
                Labor a written response to the complaint and an 
                opportunity to meet with a representative of the 
                Secretary to present statements from witnesses, the 
                Secretary of Labor shall conduct an investigation and 
                determine whether there is reasonable cause to believe 
                that the complaint has merit and notify, in writing, 
                the complainant and the person alleged to have 
                committed a violation of subsection (a) of the 
                Secretary's findings. If the Secretary of Labor 
                concludes that there is a reasonable cause to believe 
                that a violation of subsection (a) has occurred, the 
                Secretary shall accompany the Secretary's findings with 
                a preliminary order providing the relief prescribed by 
                paragraph (3)(B). Not later than 30 days after the date 
                of notification of findings under this paragraph, 
                either the person alleged to have committed the 
                violation or the complainant may file objections to the 
                findings or preliminary order, or both, and request a 
                hearing on the record. The filing of such objections 
                shall not operate to stay any reinstatement remedy 
                contained in the preliminary order. Such hearings shall 
                be conducted expeditiously. If a hearing is not 
                requested in such 30-day period, the preliminary order 
                shall be deemed a final order that is not subject to 
                judicial review.
                  ``(B) Requirements.--
                          ``(i) Required showing by complainant.--The 
                        Secretary of Labor shall dismiss a complaint 
                        filed under this subsection and shall not 
                        conduct an investigation otherwise required 
                        under subparagraph (A) unless the complainant 
                        makes a prima facie showing that any behavior 
                        described in paragraphs (1) through (4) of 
                        subsection (a) was a contributing factor in the 
                        unfavorable personnel action alleged in the 
                        complaint.
                          ``(ii) Showing by employer.--Notwithstanding 
                        a finding by the Secretary that the complainant 
                        has made the showing required under clause (i), 
                        no investigation otherwise required under 
                        subparagraph (A) shall be conducted if the 
                        employer demonstrates, by clear and convincing 
                        evidence, that the employer would have taken 
                        the same unfavorable personnel action in the 
                        absence of that behavior.
                          ``(iii) Criteria for determination by 
                        secretary.--The Secretary may determine that a 
                        violation of subsection (a) has occurred only 
                        if the complainant demonstrates that any 
                        behavior described in paragraphs (1) through 
                        (4) of subsection (a) was a contributing factor 
                        in the unfavorable personnel action alleged in 
                        the complaint.
                          ``(iv) Prohibition.--Relief may not be 
                        ordered under subparagraph (A) if the employer 
                        demonstrates by clear and convincing evidence 
                        that the employer would have taken the same 
                        unfavorable personnel action in the absence of 
                        that behavior.
          ``(3) Final order.--
                  ``(A) Deadline for issuance; settlement agreements.--
                Not later than 120 days after the date of conclusion of 
                a hearing under paragraph (2), the Secretary of Labor 
                shall issue a final order providing the relief 
                prescribed by this paragraph or denying the complaint. 
                At any time before issuance of a final order, a 
                proceeding under this subsection may be terminated on 
                the basis of a settlement agreement entered into by the 
                Secretary of Labor, the complainant, and the person 
                alleged to have committed the violation.
                  ``(B) Remedy.--If, in response to a complaint filed 
                under paragraph (1), the Secretary of Labor determines 
                that a violation of subsection (a) has occurred, the 
                Secretary of Labor shall order the person who committed 
                such violation to--
                          ``(i) take affirmative action to abate the 
                        violation;
                          ``(ii) reinstate the complainant to his or 
                        her former position together with the 
                        compensation (including back pay) and restore 
                        the terms, conditions, and privileges 
                        associated with his or her employment; and
                          ``(iii) provide compensatory damages to the 
                        complainant.
                If such an order is issued under this paragraph, the 
                Secretary of Labor, at the request of the complainant, 
                shall assess against the person against whom the order 
                is issued a sum equal to the aggregate amount of all 
                costs and expenses (including attorneys' and expert 
                witness fees) reasonably incurred, as determined by the 
                Secretary of Labor, by the complainant for, or in 
                connection with, the bringing the complaint upon which 
                the order was issued.
                  ``(C) Frivolous complaints.--If the Secretary of 
                Labor finds that a complaint under paragraph (1) is 
                frivolous or has been brought in bad faith, the 
                Secretary of Labor may award to the prevailing employer 
                a reasonable attorney's fee not exceeding $5,000.
          ``(4) Review.--
                  ``(A) Appeal to court of appeals.--Any person 
                adversely affected or aggrieved by an order issued 
                under paragraph (3) may obtain review of the order in 
                the United States Court of Appeals for the circuit in 
                which the violation, with respect to which the order 
                was issued, allegedly occurred or the circuit in which 
                the complainant resided on the date of such violation. 
                The petition for review must be filed not later than 60 
                days after the date of the issuance of the final order 
                of the Secretary of Labor. Review shall conform to 
                chapter 7 of title 5. The commencement of proceedings 
                under this subparagraph shall not, unless ordered by 
                the court, operate as a stay of the order.
                  ``(B) Limitation on collateral attack.--An order of 
                the Secretary of Labor with respect to which review 
                could have been obtained under subparagraph (A) shall 
                not be subject to judicial review in any criminal or 
                other civil proceeding.
          ``(5) Enforcement of order by secretary of labor.--Whenever 
        any person has failed to comply with an order issued under 
        paragraph (3), the Secretary of Labor may file a civil action 
        in the United States district court for the district in which 
        the violation was found to occur to enforce such order. In 
        actions brought under this paragraph, the district courts shall 
        have jurisdiction to grant all appropriate relief including, 
        but not limited to, injunctive relief and compensatory damages.
          ``(6) Enforcement of order by parties.--
                  ``(A) Commencement of action.--A person on whose 
                behalf an order was issued under paragraph (3) may 
                commence a civil action against the person to whom such 
                order was issued to require compliance with such order. 
                The appropriate United States district court shall have 
                jurisdiction, without regard to the amount in 
                controversy or the citizenship of the parties, to 
                enforce such order.
                  ``(B) Attorney fees.--The court, in issuing any final 
                order under this paragraph, may award costs of 
                litigation (including reasonable attorney and expert 
                witness fees) to any party whenever the court 
                determines such award is appropriate.
  ``(c) Mandamus.--Any nondiscretionary duty imposed by this section 
shall be enforceable in a mandamus proceeding brought under section 
1361 of title 28.
  ``(d) Nonapplicability to Deliberate Violations.--Subsection (a) 
shall not apply with respect to an employee of an air carrier, 
contractor, or subcontractor who, acting without direction from such 
air carrier, contractor, or subcontractor (or such person's agent), 
deliberately causes a violation of any requirement relating to air 
carrier safety under this subtitle or any other law of the United 
States.
  ``(e) Contractor Defined.--In this section, the term `contractor' 
means a company that performs safety-sensitive functions by contract 
for an air carrier.''.
  (b) Conforming Amendment.--The analysis for chapter 421 is amended by 
adding at the end the following:

           ``SUBCHAPTER III--WHISTLEBLOWER PROTECTION PROGRAM

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

SEC. 602. CIVIL PENALTY.

  Section 46301(a)(1)(A) is amended by striking ``subchapter II of 
chapter 421'' and inserting ``subchapter II or III of chapter 421''.

                  TITLE VII--MISCELLANEOUS PROVISIONS

SEC. 701. DUTIES AND POWERS OF ADMINISTRATOR.

  Section 106(g)(1)(A) is amended by striking ``40113(a), (c), and 
(d),'' and all that follows through ``45302-45304,'' and inserting 
``40113(a), 40113(c), 40113(d), 40113(e), 40114(a), and 40119, chapter 
445 (except sections 44501(b), 44502(a)(2), 44502(a)(3), 44502(a)(4), 
44503, 44506, 44509, 44510, 44514, and 44515), chapter 447 (except 
sections 44717, 44718(a), 44718(b), 44719, 44720, 44721(b), 44722, 
and44723), chapter 449 (except sections 44903(d), 44904, 44905, 44907-
44911, 44913, 44915, and 44931-44934), chapter 451, chapter 453, 
sections''.

SEC. 702. PUBLIC AIRCRAFT.

  (a) Restatement of Definition of Public Aircraft Without Substantive 
Change.--Section 40102(a)(38) (as redesignated by section 301 of this 
Act) is amended to read as follows:
          ``(38) `public aircraft' means an aircraft--
                  ``(A) used only for the United States Government, and 
                operated under the conditions specified by section 
                40125(b) if owned by the Government;
                  ``(B) owned by the United States Government, operated 
                by any person for purposes related to crew training, 
                equipment development, or demonstration, and operated 
                under the conditions specified by section 40125(b);
                  ``(C) owned and operated by the government of a 
                State, the District of Columbia, a territory or 
                possession of the United States, or a political 
                subdivision of one of these governments, under the 
                conditions specified by section 40125(c); or
                  ``(D) exclusively leased for at least 90 continuous 
                days by the government of a State, the District of 
                Columbia, a territory or possession of the United 
                States, or a political subdivision of one of these 
                governments, under the conditions specified by section 
                40125(c).''.
  (b) Qualifications for Public Aircraft Status.--
          (1) In General.--Chapter 401 is amended by adding at the end 
        the following:

``Sec. 40125. Qualifications for public aircraft status

  ``(a) Definitions.--In this section, the following definitions apply:
          ``(1) Commercial purposes.--The term `commercial purposes' 
        means the transportation of persons or property for 
        compensation or hire, but does not include the operation of an 
        aircraft by one government on behalf of another government 
        under a cost reimbursement agreement if the government on whose 
        behalf the operation is conducted certifies to the 
        Administrator of the Federal Aviation Administration that the 
        operation is necessary to respond to a significant and imminent 
        threat to life or property (including natural resources) and 
        that no service by a private operator is reasonably available 
        to meet the threat.
          ``(2) Governmental function.--The term `governmental 
        function' means an activity undertaken by a government, such as 
        firefighting, search and rescue, law enforcement, aeronautical 
        research, or biological or geological resource management.
          ``(3) Qualified non-crewmember.--The term `qualified non-
        crewmember' means an individual, other than a member of the 
        crew, aboard an aircraft--
                  ``(A) operated by the armed forces or an intelligence 
                agency of the United States Government; or
                  ``(B) whose presence is required to perform, or is 
                associated with the performance of, a governmental 
                function.
  ``(b) Aircraft Owned by the United States.--An aircraft described in 
subparagraph (A) or (B) of section 40102(a)(38), if owned by the 
Government, qualifies as a public aircraft except when it is used for 
commercial purposes or to carry an individual other than a crewmember 
or a qualified non-crewmember.
  ``(c) Aircraft Owned by State and Local Governments.--An aircraft 
described in subparagraph (C) or (D) of section 40102(a)(38) qualifies 
as a public aircraft except when it is used for commercial purposes or 
to carry an individual other than a crewmember or a qualified non-
crewmember.''.
          (2) Conforming amendment.--The analysis for chapter 401 is 
        amended by adding at the end the following:

``40125. Qualifications for public aircraft status.''.

SEC. 703. PROHIBITION ON RELEASE OF OFFEROR PROPOSALS.

  Section 40110 is amended by adding at the end the following:
  ``(d) Prohibition on Release of Offeror Proposals.--
          ``(1) General rule.--Except as provided in paragraph (2), a 
        proposal in the possession or control of the Administrator may 
        not be made available to any person under section 552 of title 
        5.
          ``(2) Exception.--Paragraph (1) shall not apply to any 
        portion of a proposal of an offeror the disclosure of which is 
        authorized by the Administrator pursuant to procedures 
        published in the Federal Register. The Administrator shall 
        provide an opportunity for public comment on the procedures for 
        a period of not less than 30 days beginning on the date of such 
        publication in order to receive and consider the views of all 
        interested parties on the procedures. The procedures shall not 
        take effect before the 60th day following the date of such 
        publication.
          ``(3) Proposal defined.--In this subsection, the term 
        `proposal' means information contained in or originating from 
        any proposal, including a technical, management, or cost 
        proposal, submitted by an offeror in response to the 
        requirements of a solicitation for a competitive proposal.''.

SEC. 704. MULTIYEAR PROCUREMENT CONTRACTS.

  Section 40111 is amended--
          (1) by redesignating subsections (b) through (d) as 
        subsections (c) through (e), respectively; and
          (2) by inserting after subsection (a) the following:
  ``(b) Telecommunications Services.--Notwithstanding section 
1341(a)(1)(B) of title 31, the Administrator may make a contract of not 
more than 10 years for telecommunication services that are provided 
through the use of a satellite if the Administrator finds that the 
longer contract period would be cost beneficial.''.

SEC. 705. FEDERAL AVIATION ADMINISTRATION PERSONNEL MANAGEMENT SYSTEM.

  (a) Mediation.--Section 40122(a)(2) is amended by adding at the end 
the following: ``The 60-day period shall not include any period during 
which Congress has adjourned sine die.''.
  (b) Right To Contest Adverse Personnel Actions.--Section 40122 is 
amended by adding at the end the following:
  ``(g) Right To Contest Adverse Personnel Actions.--An employee of the 
Federal Aviation Administration who is the subject of a major adverse 
personnel action may contest the action either through any contractual 
grievance procedure that is applicable to the employee as a member of 
the collective bargaining unit or through the Administration's internal 
process relating to review of major adverse personnel actions of the 
Administration, known as Guaranteed Fair Treatment or under section 
347(c) of the Department of Transportation and Related Agencies 
Appropriations Act, 1996.
  ``(h) Election of Forum.--Where a major adverse personnel action may 
be contested through more than one of the indicated forums (such as the 
contractual grievance procedure, the Federal Aviation Administration's 
internal process, or that of the Merit Systems Protection Board), an 
employee must elect the forum through which the matter will be 
contested. Nothing in this section is intended to allow an employee to 
contest an action through more than one forum unless otherwise allowed 
by law.
  ``(i) Definition.--For purposes of this section, the term `major 
adverse personnel action' means a suspension of more than 14 days, a 
reduction in pay or grade, a removal for conduct or performance, a 
nondisciplinary removal, a furlough of 30 days or less (but not 
including placement in a nonpay status as the result of a lapse of 
appropriations or an enactment by Congress), or a reduction in force 
action.''.
  (c) Applicability of Merit Systems Protection Board Provisions.--
Section 347(b) of the Department of Transportation and Related Agencies 
Appropriations Act, 1996 (109 Stat. 460) is amended--
          (1) by striking ``and'' at the end of paragraph (6);
          (2) by striking the period at the end of paragraph (7) and 
        inserting ``; and''; and
          (3) by adding at the end the following:
          ``(8) sections 1204, 1211-1218, 1221, and 7701-7703, relating 
        to the Merit Systems Protection Board.''.
  (d) Appeals to Merit Systems Protection Board.--Section 347(c) of the 
Department of Transportation and Related Agencies Appropriations Act, 
1996 is amended to read as follows:
  ``(c) Appeals to Merit Systems Protection Board.--Under the new 
personnel management system developed and implemented under subsection 
(a), an employee of the Federal Aviation Administration may submit an 
appeal to the Merit Systems Protection Board and may seek judicial 
review of any resulting final orders or decisions of the Board from any 
action that was appealable to the Board under any law, rule, or 
regulation as of March 31, 1996.''.

SEC. 706. NONDISCRIMINATION IN AIRLINE TRAVEL.

  (a) Discriminatory Practices.--Section 41310(a) is amended to read as 
follows:
  ``(a) Prohibitions.--
          ``(1) In general.--An air carrier or foreign air carrier may 
        not subject a person, place, port, or type of traffic in 
        foreign air transportation to unreasonable discrimination.
          ``(2) Discrimination against persons.--An air carrier or 
        foreign air carrier may not subject a person in foreign air 
        transportation to discrimination on the basis of race, color, 
        national origin, religion, or sex.''.
  (b) Interstate Air Transportation.--Section 41702 is amended--
          (1) by striking ``An air carrier'' and inserting ``(a) Safe 
        and Adequate Air Transportation.--An air carrier''; and
          (2) by adding at the end the following:
  ``(b) Discrimination Against Persons.--An air carrier may not subject 
a person in interstate air transportation to discrimination on the 
basis of race, color, national origin, religion, or sex.''.
  (c) Discrimination Against Handicapped Individuals.--Section 41705 is 
amended by inserting ``or foreign air carrier'' after ``air carrier''.
  (d) Civil Penalty for Violations of Prohibition on Discrimination 
Against the Handicapped.--Section 46301(a)(3) is further amended by 
adding at the end the following:
          ``(D) a violation of section 41705, relating to 
        discrimination against handicapped individuals.''.
  (e) International Aviation Standards for Accommodating the 
Handicapped.--The Secretary of Transportation shall work with 
appropriate international organizations and the aviation authorities of 
other nations to bring about the establishment of higher standards, if 
appropriate, for accommodating handicapped passengers in air 
transportation, particularly with respect to foreign air carriers that 
code share with domestic air carriers.

SEC. 707. JOINT VENTURE AGREEMENT.

  Section 41716(a)(1) is amended by striking ``an agreement entered 
into by a major air carrier'' and inserting ``an agreement entered into 
between 2 or more major air carriers''.

SEC. 708. EXTENSION OF WAR RISK INSURANCE PROGRAM.

  Section 44310 is amended by striking ``after'' and all that follows 
and inserting ``after December 31, 2004.''.

SEC. 709. GENERAL FACILITIES AND PERSONNEL AUTHORITY.

  Section 44502(a) is further amended by adding at the end the 
following:
          ``(6) Improvements on leased properties.--The Administrator 
        may make improvements to real property leased for no or nominal 
        consideration for an air navigation facility, regardless of 
        whether the cost of making the improvements exceeds the cost of 
        leasing the real property, if--
                  ``(A) the improvements primarily benefit the 
                Government;
                  ``(B) the improvements are essential for 
                accomplishment of the mission of the Federal Aviation 
                Administration; and
                  ``(C) the interest of the Government in the 
                improvements is protected.''.

SEC. 710. IMPLEMENTATION OF ARTICLE 83 BIS OF THE CHICAGO CONVENTION.

  Section 44701 is amended by--
          (1) redesignating subsection (e) as subsection (f); and
          (2) by inserting after subsection (d) the following:
  ``(e) Bilateral Exchanges of Safety Oversight Responsibilities.--
          ``(1) In general.--Notwithstanding the provisions of this 
        chapter, the Administrator, pursuant to Article 83 bis of the 
        Convention on International Civil Aviation and by a bilateral 
        agreement with the aeronautical authorities of another country, 
        may exchange with that country all or part of their respective 
        functions and duties with respect to registered aircraft under 
        the following articles of the Convention: Article 12 (Rules of 
        the Air); Article 31 (Certificates of Airworthiness); or 
        Article 32a (Licenses of Personnel).
          ``(2) Relinquishment and acceptance of responsibility.--The 
        Administrator relinquishes responsibility with respect to the 
        functions and duties transferred by the Administrator as 
        specified in the bilateral agreement, under the Articles listed 
        in paragraph (1) for United States-registered aircraft 
        described in paragraph (4)(A) transferred abroad and accepts 
        responsibility with respect to the functions and duties under 
        those Articles for aircraft registered abroad and described in 
        paragraph (4)(B) that are transferred to the United States.
          ``(3) Conditions.--The Administrator may predicate, in the 
        agreement, the transfer of functions and duties under this 
        subsection on any conditions the Administrator deems necessary 
        and prudent, except that the Administrator may not transfer 
        responsibilities for United States registered aircraft 
        described in paragraph (4)(A) to a country that the 
        Administrator determines is not in compliance with its 
        obligations under international law for the safety oversight of 
        civil aviation.
          ``(4) Registered aircraft defined.--In this subsection, the 
        term `registered aircraft' means--
                  ``(A) aircraft registered in the United States and 
                operated pursuant to an agreement for the lease, 
                charter, or interchange of the aircraft or any similar 
                arrangement by an operator that has its principal place 
                of business or, if it has no such place of business, 
                its permanent residence in another country; or
                  ``(B) aircraft registered in a foreign country and 
                operated under an agreement for the lease, charter, or 
                interchange of the aircraft or any similar arrangement 
                by an operator that has its principal place of business 
                or, if it has no such place of business, its permanent 
                residence in the United States.''.

SEC. 711. PUBLIC AVAILABILITY OF AIRMEN RECORDS.

  Section 44703 is amended--
          (1) by redesignating subsections (c) through (f) as 
        subsections (d) through (g), respectively; and
          (2) by inserting after subsection (b) the following:
  ``(c) Public Information.--
          ``(1) In general.--Subject to paragraph (2) and 
        notwithstanding any other provision of law, the information 
        contained in the records of contents of any airman certificate 
        issued under this section that is limited to an airman's name, 
        address, date of birth, and ratings held shall be made 
        available to the public after the 120th day following the date 
        of enactment of the Aviation Investment and Reform Act for the 
        21st Century.
          ``(2) Opportunity to withhold information.--Before making any 
        information concerning an airman available to the public under 
        paragraph (1), the airman shall be given an opportunity to 
        elect that the information not be made available to the public.
          ``(3) Development and implementation of program.--Not later 
        than 60 days after the date of enactment of the Aviation 
        Investment and Reform Act for the 21st Century, the 
        Administrator shall develop and implement, in cooperation with 
        representatives of the aviation industry, a one-time written 
        notification to airmen to set forth the implications of making 
        information concerning an airman available to the public under 
        paragraph (1) and to carry out paragraph (2).''.

SEC. 712. APPEALS OF EMERGENCY REVOCATIONS OF CERTIFICATES.

  Section 44709(e) is amended to read as follows:
  ``(e) Effectiveness of Orders Pending Appeal.--
          ``(1) In general.--Except as provided in paragraph (2), if a 
        person files an appeal with the Board under section (d), the 
        order of the Administrator is stayed.
          ``(2) Emergencies.--If the Administrator advises the Board 
        that an emergency exists and safety in air commerce or air 
        transportation requires the order to be effective immediately, 
        the order is effective, except that a person filing an appeal 
        under subsection (d) may file a written petition to the Board 
        for an emergency stay on the issues of the appeal that are 
        related to the existence of the emergency. The Board shall have 
        10 days to review the materials. If any 2 members of the Board 
        determine that sufficient grounds exist to grant a stay, an 
        emergency stay shall be granted. If an emergency stay is 
        granted, the Board must meet within 15 days of the granting of 
        the stay to make a final disposition of the issues related to 
        the existence of the emergency.
          ``(3) Final disposition of appeal.--In all cases, the Board 
        shall make a final disposition of the merits of the appeal not 
        later than 60 days after the Administrator advises the Board of 
        the order.''.

SEC. 713. GOVERNMENT AND INDUSTRY CONSORTIA.

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

SEC. 714. PASSENGER MANIFEST.

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

SEC. 715. COST RECOVERY FOR FOREIGN AVIATION SERVICES.

  Section 45301 is amended--
          (1) by striking subsection (a)(2) and inserting the 
        following:
          ``(2) Services (other than air traffic control services) 
        provided to a foreign government or to any entity obtaining 
        services outside the United States, except that the 
        Administrator shall not impose fees in any manner for 
        production-certification related service performed outside the 
        United States pertaining to aeronautical products manufactured 
        outside the United States.''; and
          (2) by adding at the end the following:
  ``(d) Production-Certification Related Service Defined.--In this 
section, the term `production-certification related service' has the 
meaning given that term in appendix C of part 187 of title 14, Code of 
Federal Regulations.''.

SEC. 716. TECHNICAL CORRECTIONS TO CIVIL PENALTY PROVISIONS.

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

SEC. 717. WAIVER UNDER AIRPORT NOISE AND CAPACITY ACT.

  (a) Waivers for Aircraft Not Complying With Stage 3 Noise Levels.--
Section 47528(b)(1) is amended in the first sentence by inserting ``or 
foreign air carrier'' after ``air carrier''.
  (b) Exemption for Aircraft Modification or Disposal.--Section 47528 
is amended--
          (1) in subsection (a) by inserting ``or (f)'' after ``(b)''; 
        and
          (2) by adding at the end the following:
  ``(f) Aircraft Modification or Disposal.--After December 31, 1999, 
the Secretary may provide a procedure under which a person may operate 
a stage 1 or stage 2 aircraft in nonrevenue service to or from an 
airport in the United States in order to--
          ``(1) sell the aircraft outside the United States;
          ``(2) sell the aircraft for scrapping; or
          ``(3) obtain modifications to the aircraft to meet stage 3 
        noise levels.''.
  (c) Limited Operation of Certain Aircraft.--Section 47528(e) is 
amended by adding at the end the following:
  ``(4) An air carrier operating stage 2 aircraft under this subsection 
may operate stage 2 aircraft to or from the 48 contiguous States on a 
nonrevenue basis in order to--
          ``(A) perform maintenance (including major alterations) or 
        preventative maintenance on aircraft operated, or to be 
        operated, within the limitations of paragraph (2)(B); or
          ``(B) conduct operations within the limitations of paragraph 
        (2)(B).''.

SEC. 718. METROPOLITAN WASHINGTON AIRPORT AUTHORITY.

  (a) Extension of Application Approvals.--Section 49108 is amended by 
striking ``2001'' and inserting ``2004''.
  (b) Elimination of Deadline for Appointment of Members to Board of 
Directors.--Section 49106(c)(6) is amended by striking subparagraph (C) 
and by redesignating subparagraph (D) as subparagraph (C).

SEC. 719. ACQUISITION MANAGEMENT SYSTEM.

  Section 348 of the Department of Transportation and Related Agencies 
Appropriations Act, 1996 (49 U.S.C. 106 note; 109 Stat. 460) is amended 
by striking subsection (c) and inserting the following:
  ``(c) Contracts Extending Into a Subsequent Fiscal Year.--
Notwithstanding subsection (b)(3), the Administrator may enter into 
contracts for procurement of severable services that begin in one 
fiscal year and end in another if (without regard to any option to 
extend the period of the contract) the contract period does not exceed 
1 year.''.

SEC. 720. CENTENNIAL OF FLIGHT COMMISSION.

  (a) Membership.--
          (1) Appointment.--Section 4(a)(5) of the Centennial of Flight 
        Commemoration Act (36 U.S.C. 143 note; 112 Stat. 3487) is 
        amended by inserting ``, or his designee,'' after 
        ``prominence''.
          (2) Status.--Section 4 of such Act (112 Stat. 3487) is 
        amended by adding at the end the following:
  ``(g) Status.--The members of the Commission described in paragraphs 
(1), (3), (4), and (5) of subsection (a) shall not be considered to be 
officers or employees of the United States.''.
  (b) Duties.--Section 5(a)(7) of such Act (112 Stat. 3488) is amended 
to read as follows:
          ``(7) as a nonprimary purpose, publish popular and scholarly 
        works related to the history of aviation or the anniversary of 
        the centennial of powered flight.''.
  (c) Conflicts of Interest.--Section 6 of such Act (112 Stat. 3488-
3489) is amended by adding at the end the following:
  ``(e) Conflicts of Interest.--At its second business meeting, the 
Commission shall adopt a policy to protect against possible conflicts 
of interest involving its members and employees. The Commission shall 
consult with the Office of Government Ethics in the development of such 
a policy and shall recognize the status accorded its members under 
section 4(g).''.
  (d) Executive Director.--The first sentence of section 7(a) of such 
Act (112 Stat. 3489) is amended by striking the period at the end and 
inserting the following: ``or represented on the First Flight 
Centennial Advisory Board under subparagraphs (A) through (E) of 
section 12(b)(1).''.
  (e) Exclusive Right to Name, Logos, Emblems, Seals, and Marks.--
          (1) Use of funds.--Section 9(d) of such Act (112 Stat. 3490) 
        is amended by striking the period at the end and inserting the 
        following: ``, except that the Commission may transfer any 
        portion of such funds that is in excess of the funds necessary 
        to carry out such duties to any Federal agency or the National 
        Air and Space Museum of the Smithsonian Institution to be used 
        for the sole purpose of commemorating the history of aviation 
        or the centennial of powered flight.''.
          (2) Duties to be carried out by administrator of nasa.--
        Section 9 of such Act (112 Stat. 3490) is amended by adding at 
        the end the following:
  ``(f) Duties To Be Carried Out by Administrator of NASA.--The duties 
of the Commission under this section shall be carried out by the 
Administrator of the National Aeronautics and Space Administration, in 
consultation with the Commission.''.

SEC. 721. AIRCRAFT SITUATIONAL DISPLAY DATA.

  (a) In General.--A memorandum of agreement between the Administrator 
and any person that directly obtains aircraft situational display data 
from the Federal Aviation Administration shall require that--
          (1) the person demonstrate to the satisfaction of the 
        Administrator that such person is capable of selectively 
        blocking the display of any aircraft-situation-display-to-
        industry derived data related to any identified aircraft 
        registration number; and
          (2) the person agree to block selectively the aircraft 
        registration numbers of any aircraft owner or operator upon the 
        Administration's request.
  (b) Existing Memoranda To Be Conformed.--The Administrator shall 
conform any memoranda of agreement, in effect on the date of enactment 
of this Act, between the Administration and a person under which that 
person obtains aircraft situational display data to incorporate the 
requirements of subsection (a) within 30 days after that date.

SEC. 722. ELIMINATION OF BACKLOG OF EQUAL EMPLOYMENT OPPORTUNITY 
                    COMPLAINTS.

  (a) Hiring of Additional Personnel.--For fiscal year 2000, the 
Secretary of Transportation may hire or contract for such additional 
personnel as may be necessary to eliminate the backlog of pending equal 
employment opportunity complaints to the Department of Transportation 
and to ensure that investigations of complaints are completed not later 
than 180 days after the date of initiation of the investigation.
  (b) Funding.--Of the amounts appropriated pursuant to section 106(k) 
of title 49, United States Code, for fiscal year 2000, $2,000,000 may 
be used to carry out this section.

SEC. 723. NEWPORT NEWS, VIRGINIA.

  (a) Authority To Grant Waivers.--Notwithstanding section 16 of the 
Federal Airport Act (as in effect on May 14, 1947) or section 47125 of 
title 49, United States Code, the Secretary shall, subject to section 
47153 of such title (as in effect on June 1, 1998), and subsection (b) 
of this section, waive with respect to airport property parcels that, 
according to the Federal Aviation Administration approved airport 
layout plan for Newport News/Williamsburg International Airport, are no 
longer required for airport purposes from any term contained in the 
deed of conveyance dated May 14, 1947, under which the United States 
conveyed such property to the Peninsula Airport Commission for airport 
purposes of the Commission.
  (b) Conditions.--Any waiver granted by the Secretary under subsection 
(a) shall be subject to the following conditions:
          (1) The Peninsula Airport Commission shall agree that, in 
        leasing or conveying any interest in the property with respect 
        to which waivers are granted under subsection (a), the 
        Commission will receive an amount that is equal to the fair 
        lease value or the fair market value, as the case may be (as 
        determined pursuant to regulations issued by the Secretary).
          (2) Peninsula Airport Commission shall use any amount so 
        received only for the development, improvement, operation, or 
        maintenance of Newport News/Williamsburg International Airport.

SEC. 724. GRANT OF EASEMENT, LOS ANGELES, CALIFORNIA.

  The City of Los Angeles Department of Airports may grant an easement 
to the California Department of Transportation to lands required to 
provide sufficient right-of-way to facilitate the construction of the 
California State Route 138 bypass, as proposed by the California 
Department of Transportation.

SEC. 725. REGULATION OF ALASKA GUIDE PILOTS.

  (a) In General.--Beginning on the date of enactment of this Act, 
flight operations conducted by Alaska guide pilots shall be regulated 
under the general operating and flight rules contained in part 91 of 
title 14, Code of Regulations.
  (b) Rulemaking Proceeding.--
          (1) In general.--The Administrator shall conduct a rulemaking 
        proceeding and issue a final rule to modify the general 
        operating and flight rules referred to in subsection (a) by 
        establishing special rules applicable to the flight operations 
        conducted by Alaska guide pilots.
          (2) Contents of rules.--A final rule issued by the 
        Administrator under paragraph (1) shall require Alaska guide 
        pilots--
                  (A) to operate aircraft inspected no less often than 
                after 125 hours of flight time;
                  (B) to participate in an annual flight review, as 
                described in section 61.56 of title 14, Code of Federal 
                Regulations;
                  (C) to have at least 500 hours of flight time as a 
                pilot;
                  (D) to have a commercial rating, as described subpart 
                F of part 61 of such title;
                  (E) to hold at least a second-class medical 
                certificate, as described in subpart C of part 67 of 
                such title;
                  (F) to hold a current letter of authorization issued 
                by the Administrator; and
                  (G) to take such other actions as the Administrator 
                determines necessary for safety.
  (c) Definitions.--In this section, the following definitions apply:
          (1) Letter of authorization.--The term ``letter of 
        authorization'' means a letter issued by the Administrator once 
        every 5 years to an Alaska guide pilot certifying that the 
        pilot is in compliance with general operating and flight rules 
        applicable to the pilot. In the case of a multi-pilot 
        operation, at the election of the operating entity, a letter of 
        authorization may be issued by the Administrator to the entity 
        or to each Alaska guide pilot employed by the entity.
          (2) Alaska guide pilot.--The term ``Alaska guide pilot'' 
        means a pilot who--
                  (A) conducts aircraft operations over or within the 
                State of Alaska;
                  (B) operates single engine, fixed wing aircraft on 
                floats, wheels, or skis, providing commercial hunting, 
                fishing, or other guide services and related 
                accommodations in the form of camps or lodges; and
                  (C) transports clients by such aircraft incidental to 
                hunting, fishing, or other guide services, or uses air 
                transport to enable guided clients to reach hunting or 
                fishing locations.

SEC. 726. AIRCRAFT REPAIR AND MAINTENANCE ADVISORY PANEL.

  (a) Establishment of Panel.--The Secretary of Transportation--
          (1) shall establish an Aircraft Repair and Maintenance 
        Advisory Panel to review issues related to the use and 
        oversight of aircraft and aviation component repair and 
        maintenance facilities (in this section referred to as 
        ``aircraft repair facilities'') located within, or outside of, 
        the United States; and
          (2) may seek the advice of the panel on any issue related to 
        methods to increase safety by improving the oversight of 
        aircraft repair facilities.
  (b) Membership.--The panel shall consist of--
          (1) 9 members appointed by the Secretary as follows:
                  (A) 3 representatives of labor organizations 
                representing aviation mechanics;
                  (B) 1 representative of cargo air carriers;
                  (C) 1 representative of passenger air carriers;
                  (D) 1 representative of aircraft repair facilities;
                  (E) 1 representative of aircraft manufacturers;
                  (F) 1 representative of on-demand passenger air 
                carriers and corporate aircraft operations; and
                  (G) 1 representative of regional passenger air 
                carriers;
          (2) 1 representative from the Department of Commerce, 
        designated by the Secretary of Commerce;
          (3) 1 representative from the Department of State, designated 
        by the Secretary of State; and
          (4) 1 representative from the Federal Aviation 
        Administration, designated by the Administrator.
  (c) Responsibilities.--The panel shall--
          (1) determine the amount and type of work that is being 
        performed by aircraft repair facilities located within, and 
        outside of, the United States; and
          (2) provide advice and counsel to the Secretary with respect 
        to the aircraft and aviation component repair work performed by 
        aircraft repair facilities and air carriers, staffing needs, 
        and any balance of trade or safety issues associated with that 
        work.
  (d) DOT To Request Information From Air Carriers and Repair 
Facilities.--
          (1) Collection of information.--The Secretary, by regulation, 
        shall require air carriers, foreign air carriers, domestic 
        repair facilities, and foreign repair facilities to submit such 
        information as the Secretary may require in order to assess 
        balance of trade and safety issues with respect to work 
        performed on aircraft used by air carriers, foreign air 
        carriers, United States corporate operators, and foreign 
        corporate operators.
          (2) Drug and alcohol testing information.--Included in the 
        information the Secretary requires under paragraph (1) shall be 
        information on the existence and administration of employee 
        drug and alcohol testing programs in place at the foreign 
        repair facilities, if applicable. The Secretary, if necessary, 
        shall work with the International Civil Aviation Organization 
        to increase the number and improve the administration of 
        employee drug and alcohol testing programs at the foreign 
        repair facilities.
          (3) Description of work done.--Included in the information 
        the Secretary requires under paragraph (1) shall be information 
        on the amount and type of work performed on aircraft registered 
        in and outside of the United States.
  (e) DOT To Facilitate Collection of Information About Aircraft 
Maintenance.--The Secretary shall facilitate the collection of 
information from the National Transportation Safety Board, the Federal 
Aviation Administration, and other appropriate agencies regarding 
maintenance performed by aircraft repair facilities.
  (f) DOT To Make Information Available to Public.--The Secretary shall 
make any relevant information received under subsection (c) available 
to the public, consistent with the authority to withhold trade secrets 
or commercial, financial, and other proprietary information under 
section 552 of title 5, United States Code.
  (g) Termination.--The panel established under subsection (a) shall 
terminate on the earlier of--
          (1) the date that is 2 years after the date of enactment of 
        this Act; or
          (2) December 31, 2001.
  (h) Definitions.--The definitions contained in section 40102 of title 
49, United States Code, shall apply to this section.

SEC. 727. OPERATIONS OF AIR TAXI INDUSTRY.

  (a) Study.--The Administrator, in consultation with the National 
Transportation Safety Board and other interested persons, shall conduct 
a study of air taxi operators regulated under part 135 of title 14, 
Code of Federal Regulations.
  (b) Contents.--The study shall include an analysis of the size and 
type of the aircraft fleet, relevant aircraft equipment, hours flown, 
utilization rates, safety record by various categories of use and 
aircraft type, sales revenues, and airports served by the air taxi 
fleet.
  (c) Report.--Not later than 1 year after the date of enactment of 
this Act, the Administrator shall transmit to Congress a report on the 
results of the study.

SEC. 728. SENSE OF CONGRESS CONCERNING COMPLETION OF COMPREHENSIVE 
                    NATIONAL AIRSPACE REDESIGN.

  It is the sense of Congress that, as soon as is practicable, the 
Administrator should complete and begin implementation of the 
comprehensive national airspace redesign that is being conducted by the 
Administrator.

SEC. 729. COMPLIANCE WITH REQUIREMENTS.

  Notwithstanding any other provision of law, in order to avoid 
unnecessary duplication of expense and effort, the Secretary of 
Transportation may authorize the use, in whole or in part, of a 
completed environmental assessment or environmental impact study for 
new construction projects on the air operations area of an airport, if 
the completed assessment or study was for a project at the airport that 
is substantially similar in nature to the new project. Any such 
authorized use shall meet all requirements of Federal law for the 
completion of such an assessment or study.

SEC. 730. AIRCRAFT NOISE LEVELS AT AIRPORTS.

  (a) Development of New Standards.--The Secretary of Transportation 
shall continue to work to develop a new standard for aircraft and 
aircraft engines that will lead to a further reduction in aircraft 
noise levels.
  (b) Report.--Not later than March 1, 2000, and annually thereafter, 
the Secretary shall transmit to Congress a report regarding the 
application of new standards or technologies to reduce aircraft noise 
levels.

SEC. 731. FAA CONSIDERATION OF CERTAIN STATE PROPOSALS.

  The Administrator is encouraged to consider any proposal with a 
regional consensus submitted by a State aviation authority regarding 
the expansion of existing airport facilities or the introduction of new 
airport facilities.

             TITLE VIII--NATIONAL PARKS AIR TOUR MANAGEMENT

SEC. 801. SHORT TITLE.

  This title may be cited as the ``National Parks Air Tour Management 
Act of 1999''.

SEC. 802. FINDINGS.

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

SEC. 803. AIR TOUR MANAGEMENT PLANS FOR NATIONAL PARKS.

  (a) In General.--Chapter 401 is further amended by adding at the end 
the following:

``Sec. 40126. Overflights of national parks

  ``(a) In General.--
          ``(1) General requirements.--A commercial air tour operator 
        may not conduct commercial air tour operations over a national 
        park (including tribal lands) except--
                  ``(A) in accordance with this section;
                  ``(B) in accordance with conditions and limitations 
                prescribed for that operator by the Administrator; and
                  ``(C) in accordance with any applicable air tour 
                management plan for the park.
          ``(2) Application for operating authority.--
                  ``(A) Application required.--Before commencing 
                commercial air tour operations over a national park 
                (including tribal lands), a commercial air tour 
                operator shall apply to the Administrator for authority 
                to conduct the operations over the park.
                  ``(B) Competitive bidding for limited capacity 
                parks.--Whenever an air tour management plan limits the 
                number of commercial air tour operations over a 
                national park during a specified time frame, the 
                Administrator, in cooperation with the Director, shall 
                issue operation specifications to commercial air tour 
                operators that conduct such operations. The operation 
                specifications shall include such terms and conditions 
                as the Administrator and the Director find necessary 
                for management of commercial air tour operations over 
                the park. The Administrator, in cooperation with the 
                Director, shall develop an open competitive process for 
                evaluating proposals from persons interested in 
                providing commercial air tour operations over the park. 
                In making a selection from among various proposals 
                submitted, the Administrator, in cooperation with the 
                Director, shall consider relevant factors, including--
                          ``(i) the safety record of the person 
                        submitting the proposal or pilots employed by 
                        the person;
                          ``(ii) any quiet aircraft technology proposed 
                        to be used by the person submitting the 
                        proposal;
                          ``(iii) the experience of the person 
                        submitting the proposal with commercial air 
                        tour operations over other national parks or 
                        scenic areas;
                          ``(iv) the financial capability of the 
                        company;
                          ``(v) any training programs for pilots 
                        provided by the person submitting the proposal; 
                        and
                          ``(vi) responsiveness of the person 
                        submitting the proposal to any relevant 
                        criteria developed by the National Park Service 
                        for the affected park.
                  ``(C) Number of operations authorized.--In 
                determining the number of authorizations to issue to 
                provide commercial air tour operations over a national 
                park, the Administrator, in cooperation with the 
                Director, shall take into consideration the provisions 
                of the air tour management plan, the number of existing 
                commercial air tour operators and current level of 
                service and equipment provided by any such operators, 
                and the financial viability of each commercial air tour 
                operation.
                  ``(D) Cooperation with nps.--Before granting an 
                application under this paragraph, the Administrator, in 
                cooperation with the Director, shall develop an air 
                tour management plan in accordance with subsection (b) 
                and implement such plan.
          ``(3) Exception.--
                  ``(A) In general.--If a commercial air tour operator 
                secures a letter of agreement from the Administrator 
                and the superintendent for the national park that 
                describes the conditions under which the commercial air 
                tour operation will be conducted, then notwithstanding 
                paragraph (1), the commercial air tour operator may 
                conduct such operations over the national park under 
                part 91 of title 14, Code of Federal Regulations, if 
                such activity is permitted under part 119 of such 
                title.
                  ``(B) Limit on exceptions.--Not more than 5 flights 
                in any 30-day period over a single national park may be 
                conducted under this paragraph.
          ``(4) Special rule for safety requirements.--Notwithstanding 
        subsection (d), an existing commercial air tour operator shall 
        apply, not later than 90 days after the date of enactment of 
        this section, for operating authority under part 119, 121, or 
        135 of title 14, Code of Federal Regulations. A new entrant 
        commercial air tour operator shall apply for such authority 
        before conducting commercial air tour operations over a 
        national park (including tribal lands). The Administrator shall 
        act on any such application for a new entrant and issue a 
        decision on the application not later than 24 months after it 
        is received or amended.
  ``(b) Air Tour Management Plans.--
          ``(1) Establishment.--
                  ``(A) In general.--The Administrator, in cooperation 
                with the Director, shall establish an air tour 
                management plan for any national park (including tribal 
                lands) for which such a plan is not in effect whenever 
                a person applies for authority to conduct a commercial 
                air tour operation over the park. The air tour 
                management plan shall be developed by means of a public 
                process in accordance with paragraph (4).
                  ``(B) Objective.--The objective of any air tour 
                management plan shall be to develop acceptable and 
                effective measures to mitigate or prevent the 
                significant adverse impacts, if any, of commercial air 
                tours upon the natural and cultural resources, visitor 
                experiences, and tribal lands.
          ``(2) Environmental determination.--In establishing an air 
        tour management plan under this subsection, the Administrator 
        and the Director shall each sign the environmental decision 
        document required by section 102 of the National Environmental 
        Policy Act of 1969 (42 U.S.C. 4332) (including a finding of no 
        significant impact, an environmental assessment, and an 
        environmental impact statement) and the record of decision for 
        the air tour management plan.
          ``(3) Contents.--An air tour management plan for a national 
        park--
                  ``(A) may limit or prohibit commercial air tour 
                operations;
                  ``(B) may establish conditions for the conduct of 
                commercial air tour operations, including commercial 
                air tour operation routes, maximum or minimum 
                altitudes, time-of-day restrictions, restrictions for 
                particular events, maximum number of flights per unit 
                of time, intrusions on privacy on tribal lands, and 
                mitigation of adverse noise, visual, or other impacts;
                  ``(C) may apply to all commercial air tour 
                operations;
                  ``(D) shall include incentives (such as preferred 
                commercial air tour operation routes and altitudes and 
                relief from flight caps and curfews) for the adoption 
                of quiet aircraft technology by commercial air tour 
                operators conducting commercial air tour operations 
                over the park;
                  ``(E) shall provide a system for allocating 
                opportunities to conduct commercial air tours if the 
                air tour management plan includes a limitation on the 
                number of commercial air tour operations for any time 
                period; and
                  ``(F) shall justify and document the need for 
                measures taken pursuant to subparagraphs (A) through 
                (E) and include such justifications in the record of 
                decision.
          ``(4) Procedure.--In establishing an air tour management plan 
        for a national park (including tribal lands), the Administrator 
        and the Director shall--
                  ``(A) hold at least one public meeting with 
                interested parties to develop the air tour management 
                plan;
                  ``(B) publish the proposed plan in the Federal 
                Register for notice and comment and make copies of the 
                proposed plan available to the public;
                  ``(C) comply with the regulations set forth in 
                sections 1501.3 and 1501.5 through 1501.8 of title 40, 
                Code of Federal Regulations (for purposes of complying 
                with the regulations, the Federal Aviation 
                Administration shall be the lead agency and the 
                National Park Service is a cooperating agency); and
                  ``(D) solicit the participation of any Indian tribe 
                whose tribal lands are, or may be, overflown by 
                aircraft involved in a commercial air tour operation 
                over the park, as a cooperating agency under the 
                regulations referred to in subparagraph (C).
          ``(5) Judicial review.--An air tour management plan developed 
        under this subsection shall be subject to judicial review.
          ``(6) Amendments.--The Administrator, in cooperation with the 
        Director, may make amendments to an air tour management plan. 
        Any such amendments shall be published in the Federal Register 
        for notice and comment. A request for amendment of an air tour 
        management plan shall be made in such form and manner as the 
        Administrator may prescribe.
  ``(c) Determination of Commercial Air Tour Operation Status.--In 
making a determination of whether a flight is a commercial air tour 
operation, the Administrator may consider--
          ``(1) whether there was a holding out to the public of 
        willingness to conduct a sightseeing flight for compensation or 
        hire;
          ``(2) whether a narrative that referred to areas or points of 
        interest on the surface below the route of the flight was 
        provided by the person offering the flight;
          ``(3) the area of operation;
          ``(4) the frequency of flights conducted by the person 
        offering the flight;
          ``(5) the route of flight;
          ``(6) the inclusion of sightseeing flights as part of any 
        travel arrangement package offered by the person offering the 
        flight;
          ``(7) whether the flight would have been canceled based on 
        poor visibility of the surface below the route of the flight; 
        and
          ``(8) any other factors that the Administrator considers 
        appropriate.
  ``(d) Interim Operating Authority.--
          ``(1) In general.--Upon application for operating authority, 
        the Administrator shall grant interim operating authority under 
        this subsection to a commercial air tour operator for 
        commercial air tour operations over a national park (including 
        tribal lands) for which the operator is an existing commercial 
        air tour operator.
          ``(2) Requirements and limitations.--Interim operating 
        authority granted under this subsection--
                  ``(A) shall provide annual authorization only for the 
                greater of--
                          ``(i) the number of flights used by the 
                        operator to provide such tours within the 12-
                        month period prior to the date of enactment of 
                        this section; or
                          ``(ii) the average number of flights per 12-
                        month period used by the operator to provide 
                        such tours within the 36-month period prior to 
                        such date of enactment, and, for seasonal 
                        operations, the number of flights so used 
                        during the season or seasons covered by that 
                        12-month period;
                  ``(B) may not provide for an increase in the number 
                of commercial air tour operations conducted during any 
                time period by the commercial air tour operator above 
                the number that the air tour operator was originally 
                granted unless such an increase is agreed to by the 
                Administrator and the Director;
                  ``(C) shall be published in the Federal Register to 
                provide notice and opportunity for comment;
                  ``(D) may be revoked by the Administrator for cause;
                  ``(E) shall terminate 180 days after the date on 
                which an air tour management plan is established for 
                the park or the tribal lands;
                  ``(F) shall promote protection of national park 
                resources, visitor experiences, and tribal lands;
                  ``(G) shall promote safe operations of the commercial 
                air tour;
                  ``(H) shall promote the adoption of quiet technology, 
                as appropriate; and
                  ``(I) shall allow for modifications of the operation 
                based on experience if the modification improves 
                protection of national park resources and values and of 
                tribal lands.
  ``(e) Exemptions.--
          ``(1) In general.--Except as provided by paragraph (2), this 
        section shall not apply to--
                  ``(A) the Grand Canyon National Park;
                  ``(B) tribal lands within or abutting the Grand 
                Canyon National Park; or
                  ``(C) any unit of the National Park System located in 
                Alaska or any other land or water located in Alaska.
          ``(2) Exception.--This section shall apply to the Grand 
        Canyon National Park if section 3 of Public Law 100-91 (16 
        U.S.C. 1a-1 note; 101 Stat. 674-678) is no longer in effect.
  ``(f) Definitions.--In this section, the following definitions apply:
          ``(1) Commercial air tour operator.--The term `commercial air 
        tour operator' means any person who conducts a commercial air 
        tour operation.
          ``(2) Existing commercial air tour operator.--The term 
        `existing commercial air tour operator' means a commercial air 
        tour operator that was actively engaged in the business of 
        providing commercial air tour operations over a national park 
        at any time during the 12-month period ending on the date of 
        enactment of this section.
          ``(3) New entrant commercial air tour operator.--The term 
        `new entrant commercial air tour operator' means a commercial 
        air tour operator that--
                  ``(A) applies for operating authority as a commercial 
                air tour operator for a national park; and
                  ``(B) has not engaged in the business of providing 
                commercial air tour operations over the national park 
                (including tribal lands) in the 12-month period 
                preceding the application.
          ``(4) Commercial air tour operation.--The term `commercial 
        air tour operation' means any flight, conducted for 
        compensation or hire in a powered aircraft where a purpose of 
        the flight is sightseeing over a national park, within \1/2\ 
        mile outside the boundary of any national park, or over tribal 
        lands, during which the aircraft flies--
                  ``(A) below a minimum altitude, determined by the 
                Administrator in cooperation with the Director, above 
                ground level (except solely for purposes of takeoff or 
                landing, or necessary for safe operation of an aircraft 
                as determined under the rules and regulations of the 
                Federal Aviation Administration requiring the pilot-in-
                command to take action to ensure the safe operation of 
                the aircraft); or
                  ``(B) less than 1 mile laterally from any geographic 
                feature within the park (unless more than \1/2\ mile 
                outside the boundary).
          ``(5) National park.--The term `national park' means any unit 
        of the National Park System.
          ``(6) Tribal lands.--The term `tribal lands' means Indian 
        country (as that term is defined in section 1151 of title 18) 
        that is within or abutting a national park.
          ``(7) Administrator.--The term `Administrator' means the 
        Administrator of the Federal Aviation Administration.
          ``(8) Director.--The term `Director' means the Director of 
        the National Park Service.''.
  (b) Conforming Amendment.--The analysis for chapter 401 is further 
amended by adding at the end the following:

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

SEC. 804. ADVISORY GROUP.

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

SEC. 805. REPORTS.

  (a) Overflight Fee Report.--Not later than 180 days after the date of 
enactment of this Act, the Administrator shall transmit to Congress a 
report on the effects overflight fees are likely to have on the 
commercial air tour operation industry. The report shall include, but 
shall not be limited to--
          (1) the viability of a tax credit for the commercial air tour 
        operators equal to the amount of any overflight fees charged by 
        the National Park Service; and
          (2) the financial effects proposed offsets are likely to have 
        on Federal Aviation Administration budgets and appropriations.
  (b) Quiet Aircraft Technology Report.--Not later than 2 years after 
the date of enactment of this Act, the Administrator and the Director 
shall jointly transmit a report to Congress on the effectiveness of 
this title in providing incentives for the development and use of quiet 
aircraft technology.

SEC. 806. EXEMPTIONS.

  This title shall not apply to--
          (1) any unit of the National Park System located in Alaska; 
        or
          (2) any other land or water located in Alaska.

SEC. 807. DEFINITIONS.

  In this title, the following definitions apply:
          (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Federal Aviation Administration.
          (2) Director.--The term ``Director'' means the Director of 
        the National Park Service.

                      TITLE IX--TRUTH IN BUDGETING

SEC. 901. SHORT TITLE.

  This title may be cited as the ``Truth in Budgeting Act''.

SEC. 902. BUDGETARY TREATMENT OF AIRPORT AND AIRWAY TRUST FUND.

  Notwithstanding any other provision of law, the receipts and 
disbursements of the Airport and Airway Trust Fund established by 
section 9502 of the Internal Revenue Code of 1986--
          (1) shall not be counted as new budget authority, outlays, 
        receipts, or deficit or surplus for purposes of--
                  (A) the budget of the United States Government as 
                submitted by the President,
                  (B) the congressional budget (including allocations 
                of budget authority and outlays provided therein), or
                  (C) the Balanced Budget and Emergency Deficit Control 
                Act of 1985; and
          (2) shall be exempt from any general budget limitation 
        imposed by statute on expenditures and net lending (budget 
        outlays) of the United States Government.

SEC. 903. SAFEGUARDS AGAINST DEFICIT SPENDING OUT OF AIRPORT AND AIRWAY 
                    TRUST FUND.

  (a) In General.--Subchapter I of chapter 471 is further amended by 
adding at the end the following:

``Sec. 47138. Safeguards against deficit spending

  ``(a) Estimates of Unfunded Aviation Authorizations and Net Aviation 
Receipts.--Not later than March 31 of each year, the Secretary of 
Transportation, in consultation with the Secretary of the Treasury, 
shall estimate--
          ``(1) the amount which would (but for this section) be the 
        unfunded aviation authorizations at the close of the first 
        fiscal year that begins after that March 31, and
          ``(2) the net aviation receipts to be credited to the Airport 
        and Airway Trust Fund during the fiscal year.
  ``(b) Procedure if Excess Unfunded Aviation Authorizations.--If the 
Secretary of Transportation determines for any fiscal year that the 
amount described in subsection (a)(1) exceeds the amount described in 
subsection (a)(2), the Secretary shall determine the amount of such 
excess.
  ``(c) Adjustment of Authorizations if Unfunded Authorizations Exceed 
Receipts.--
          ``(1) Determination of percentage.--If the Secretary 
        determines that there is an excess referred to in subsection 
        (b) for a fiscal year, the Secretary shall determine the 
        percentage which--
                  ``(A) such excess, is of
                  ``(B) the total of the amounts authorized to be 
                appropriated from the Airport and Airway Trust Fund for 
                the next fiscal year.
          ``(2) Adjustment of authorizations.--If the Secretary 
        determines a percentage under paragraph (1), each amount 
        authorized to be appropriated from the Airport and Airway Trust 
        Fund for the next fiscal year shall be reduced by such 
        percentage.
  ``(d) Availability of Amounts Previously Withheld.--
          ``(1) Adjustment of authorizations.--If, after a reduction 
        has been made under subsection (c)(2), the Secretary determines 
        that the amount described in subsection (a)(1) does not exceed 
        the amount described in subsection (a)(2) or that the excess 
        referred to in subsection (b) is less than the amount 
        previously determined, each amount authorized to be 
        appropriated that was reduced under subsection (c)(2) shall be 
        increased, by an equal percentage, to the extent the Secretary 
        determines that it may be so increased without causing the 
        amount described in subsection (a)(1) to exceed the amount 
        described in subsection (a)(2) (but not by more than the amount 
        of the reduction).
          ``(2) Apportionment.--The Secretary shall apportion amounts 
        made available for apportionment by paragraph (1).
          ``(3) Period of availability.--Any funds apportioned under 
        paragraph (2) shall remain available for the period for which 
        they would be available if such apportionment took effect with 
        the fiscal year in which they are apportioned under paragraph 
        (2).
  ``(e) Reports.--Any estimate under subsection (a) and any 
determination under subsection (b), (c), or (d) shall be reported by 
the Secretary to Congress.
  ``(f) Definitions.--For purposes of this section, the following 
definitions apply:
          ``(1) Net aviation receipts.--The term `net aviation 
        receipts' means, with respect to any period, the excess of--
                  ``(A) the receipts (including interest) of the 
                Airport and Airway Trust Fund during such period, over
                  ``(B) the amounts to be transferred during such 
                period from the Airport and Airway Trust Fund under 
                section 9502(d) of the Internal Revenue Code of 1986 
                (other than paragraph (1) thereof).
          ``(2) Unfunded aviation authorizations.--The term `unfunded 
        aviation authorization' means, at any time, the excess (if any) 
        of--
                  ``(A) the total amount authorized to be appropriated 
                from the Airport and Airway Trust Fund which has not 
                been appropriated, over
                  ``(B) the amount available in the Airport and Airway 
                Trust Fund at such time to make such appropriation 
                (after all other unliquidated obligations at such time 
                which are payable from the Airport and Airway Trust 
                Fund have been liquidated).''.
  (b) Conforming Amendment.--The analysis for subchapter I of chapter 
471 is further amended by adding at the end the following:

``47138. Safeguards against deficit spending.''.

SEC. 904. APPLICABILITY.

  This title (including the amendments made by this Act) shall apply to 
fiscal years beginning after September 30, 2000.

            TITLE X--ADJUSTMENT OF TRUST FUND AUTHORIZATIONS

SEC. 1001. ADJUSTMENT OF TRUST FUND AUTHORIZATIONS.

  (a) In General.--Part C of subtitle VII is amended by adding at the 
end the following:

         ``CHAPTER 483--ADJUSTMENT OF TRUST FUND AUTHORIZATIONS

``Sec.
``48301. Definitions.
``48302. Adjustments to align aviation authorizations with revenues.
``48303. Adjustment to AIP program funding.
``48304. Estimated aviation income.

``Sec. 48301. Definitions

  ``In this chapter, the following definitions apply:
          ``(1) Base year.--The term `base year' means the second 
        fiscal year before the fiscal year for which the calculation is 
        being made.
          ``(2) AIP program.--The term `AIP program' means the programs 
        for which amounts are made available under section 48103.
          ``(3) Aviation income.--The term `aviation income' means the 
        tax receipts credited to the Airport and Airway Trust Fund and 
        any interest attributable to the Fund.

``Sec. 48302. Adjustment to align aviation authorizations with revenues

  ``(a) Authorization of Appropriations.--Beginning with fiscal year 
2003, if the actual level of aviation income for the base year is 
greater or less than the estimated aviation income level specified in 
section 48304 for the base year, the amounts authorized to be 
appropriated (or made available) for the fiscal year under each of 
sections 106(k), 48101, 48102, and 48103 are adjusted as follows:
          ``(1) If the actual level of aviation income for the base 
        year is greater than the estimated aviation income level 
        specified in section 48304 for the base year, the amount 
        authorized to be appropriated (or made available) for such 
        section is increased by an amount determined by multiplying the 
        amount of the excess by the ratio for such section set forth in 
        subsection (b).
          ``(2) If the actual level of aviation income for the base 
        year is less than the estimated aviation income level specified 
        in section 48304 for the base year, the amount authorized to be 
        appropriated (or made available) for such section is decreased 
        by an amount determined by multiplying the amount of the 
        shortfall by the ratio for such section set forth in subsection 
        (b).
  ``(b) Ratio.--The ratio referred to in subsection (a) with respect to 
section 106(k), 48101, 48102, or 48103, as the case may be, is the 
ratio that--
          ``(1) the amount authorized to be appropriated (or made 
        available) under such section for the fiscal year; bears to
          ``(2) the total sum of amounts authorized to be appropriated 
        (or made available) under all of such sections for the fiscal 
        year.
  ``(c) President's Budget.--When the President submits a budget for a 
fiscal year under section 1105 of title 31, United States Code, the 
Director of the Office of Management and Budget shall calculate and the 
budget shall report any increase or decrease in authorization levels 
resulting from this section.

``Sec. 48303. Adjustment to AIP program funding

  ``On the effective date of a general appropriations Act providing 
appropriations for a fiscal year beginning after September 30, 2000, 
for the Federal Aviation Administration, the amount made available for 
a fiscal year under section 48103 shall be increased by the amount, if 
any, by which--
          ``(1) the total sum of amounts authorized to be appropriated 
        under all of sections 106(k), 48101, and 48102 for such fiscal 
        year, including adjustments made under section 48302; exceeds
          ``(2) the amounts appropriated for programs funded under such 
        sections for such fiscal year.
Any contract authority made available by this section shall be subject 
to an obligation limitation.

``Sec. 48304. Estimated aviation income

  ``For purposes of section 48302, the estimated aviation income levels 
are as follows:
          ``(1) $10,734,000,000 for fiscal year 2001.
          ``(2) $11,603,000,000 for fiscal year 2002.
          ``(3) $12,316,000,000 for fiscal year 2003.
          ``(4) $13,062,000,000 for fiscal year 2004.''.
  (b) Conforming Amendment.--The table of chapters for subtitle VII of 
such title is amended by inserting after the item relating to chapter 
482 the following:

``483. ADJUSTMENT OF TRUST FUND AUTHORIZATIONS..............   48301''.

SEC. 1002. BUDGET ESTIMATES.

  Upon the enactment of this Act, the Director of the Office of 
Management and Budget shall not make any estimates under section 252(d) 
of the Balanced Budget and Emergency Deficit Control Act of 1985 of 
changes in direct spending outlays and receipts for any fiscal year 
resulting from this title and title IX, including the amendments made 
by such titles.

SEC. 1003. SENSE OF CONGRESS ON FULLY OFFSETTING INCREASED AVIATION 
                    SPENDING.

  It is the sense of Congress that--
          (1) air passengers and other users of the air transportation 
        system pay aviation taxes into a trust fund dedicated solely to 
        improve the safety, security, and efficiency of the aviation 
        system;
          (2) from fiscal year 2001 to fiscal year 2004, air passengers 
        and other users will pay more than $14.3 billion more in 
        aviation taxes into the Airport and Airway Trust Fund than the 
        concurrent resolution on the budget for fiscal year 2000 
        provides from such Fund for aviation investment under 
        historical funding patterns;
          (3) the Aviation Investment and Reform Act for the 21st 
        Century provides $14.3 billion of aviation investment above the 
        levels assumed in that budget resolution for such fiscal years; 
        and
          (4) this increased funding will be fully offset by 
        recapturing unspent aviation taxes and reducing the $778 
        billion general tax cut assumed in that budget resolution by 
        the appropriate amount.

                              Introduction

    Programs providing federal aid to airports began in 1946 
and have been modified several times. The current Airport 
Improvement Program (AIP) began in 1982.
    AIP is funded entirely by the Airport & Airway Trust Fund. 
The Trust Fund, in turn, is supported entirely by user taxes. 
Users have been paying such taxes since at least the 1940s. 
However, the Trust Fund was not created until 1970. The types 
and amount of taxes paid into this Trust Fund have changed 
frequently. Currently, aviation users pay the following taxes:
          8% passenger ticket tax (decreasing to 7.5% by 2000);
          $2 passenger flight segment fee (increasing to $3 by 
        2002)
          6.25% freight waybill tax;
          $12 international departure tax and the same 
        international arrival tax;
          Frequent flyer award tax; and
          Aviation fuel taxes as follows:
                  4.3 cents on commercial aviation;
                  19.3 cents on general aviation gasoline; and
                  21.8 cents on general aviation jet fuel.
For rural airports (those with less than 100,000 passengers) 
the passenger ticket tax is 7.5% and there is no passenger 
flight segment fee.
    These taxes are expected to raise more than $10 billion in 
fiscal year 1999 in the following amounts:
          $5.1 billion from the passenger ticket taxes;
          $1.2 billion from the passenger flight segment fee;
          $439 million from the freight waybill tax;
          $828 million from the various aviation fuel taxes;
          $1.2 billion from the international departure and 
        arrival taxes;
          $134 million from frequent flyer award tax; and
          There is also a one-time timing change this year.
    The Aviation Trust Fund continues to earn interest on its 
cash balance, which is now approaching $12 billion. Interest 
revenue in 1999 is expected to be about $666 million.
    In addition to AIP, the Trust Fund also fully funds the 
Federal Aviation Administration's air traffic control 
facilities & equipment (F&E;) modernization program and its 
aviation research program. The Fund partially pays for the 
salaries, expenses, and operations of the FAA. In 1999, these 
programs will receive the following amounts from the Trust 
Fund:
          Airport Improvement Program--$1.95 billion
          Facilities and Equipment--$2.1 billion
          Research and Development--$150 million
          FAA Operations--$4.1 billion from the Trust Fund (of 
        the $5.6 appropriated for FAA operations).
Total obligations from the Trust Fund will therefore be about 
$8.2 billion. This represents 100% of FAA's capital budget and 
about 85% of FAA's total budget of $9.7 billion.
    As should be obvious, the more than $10 billion that the 
Trust Fund is expected to take in greatly exceeds the $8.2 
billion that it is paying out. If this trend continues, the 
uncommitted balance in the Trust Fund will balloon to $61 
billion in 10 years according to the Congressional Budget 
Office.
    The following spreadsheet shows how the Trust Fund balance 
increases over the next 10 years if current trends continue.

                                                             AIRPORT AND AIRWAY TRUST FUND (AATF) PROJECTION OF TRUST FUND BALANCES
                                                                              [Dollars in millions, by fiscal year]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                          Estimated--
                                                    actual   -----------------------------------------------------------------------------------------------------------------------------------
                                                     1998        1999        2000        2001        2002        2003        2004        2005        2006        2007        2008        2009
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                  AATF BALANCES
Start of Year Cash Balance......................     6,358       9,140      12,018      15,538      19,574      24,594      30,504      37,446      45,486      54,781      65,409      77,565
Governmental Receipts (taxes)...................     8,111      10,158       9,245        9679      10,415      11,015      11,670      12,361      13,104      13,850      14,634      15,467
Outlays.........................................    -5,872      -7,947      -6,579      -6,714      -6,720      -6,757      -6,767      -6,767      -6,767      -6,767      -6,767      -6,767
                                                 -----------------------------------------------------------------------------------------------------------------------------------------------
      Subtotal..................................     8,597      11,351      14,684      18,503      23,269      28,852      35,407      43,040      51,823      61,864      73,276      86,265
                                                 ===============================================================================================================================================
Interest Rate (percent).........................  ..........         6.3         6.2         6.1         6.0         6.0         6.0         5.9         5.9         5.9         6.0         6.0
Interest........................................       543         666         854       1,071       1,325       1,653       2,039       2,446       2,958       3,546       4,289       5,067
Total (Revenue (taxes+interest).................     8,654      10,824      10,099      10,750      11,740      12,668      13,709      14,807      16,062      17,396      18,923      20,534
End of Year Cash Balance........................     9,140      12,018      15,538      19,574      24,594      30,504      37,446      45,486      54,781      65,409      77,565      91,332
Change in Cash Balance..........................     2,782       2,878       3,520       4,036       5,020       5,911       6,941       8,040       9,295      10,628      12,156      13,767
              UNCOMMITTED BALANCES
Start of Year Unpaid Authority..................     5,032       4,801       5,552       6,171       6,684       7,191       7,661       8,121       8,581       9,041       9,501       9,961
New Budget (Authority (BA)......................     5,641       8,668       7,227       7,227       7,227       7,227       7,227       7,227       7,227       7,227       7,227       7,227
Outlays.........................................     5,872       7,947       6,579       6,714       6,757       6,767       6,767       6,767       6,767       6,767       6,767       6,767
End of Year Unpaid Authority....................     4,801       5,522       6,171       6,684       7,191       7,661       8,121       8,581       9,041       9,501       9,961      10,421
End of Year Cash Balance........................     9,140      12,018      15,538      19,574      24,594      30,504      37,446      45,486      54,781      65,409      77,565      91,332
End of Yr Uncommitted Balances..................     4,339       6,495       9,367      12,890      17,403      22,844      29,325      36,905      45,740      55,908      67,604      80,911
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Budget Authority (BA): authority provided by the Congress to enter into contracts committing funds.
Unpaid Authority: unspent BA: all budget authority that has been provided but not yet expended, including contract authority in excess of obligation limitations.
Uncommitted Balance: portion of cash balance of which the Congress has not yet provided BA. Negative numbers in this line denote a shortfall.

End of Year Cash Balance: cash available in trust fund at the end of the year. The FY98 end of year/FY99 start of year cash balance based on p. 745 of the FY2000 Budget Appendix.
Change in Cash Balance: total revenues to AATF--outlays.

Governmental receipts (tax revenues) reflect the amounts deposited in the AATF during the fiscal year. For FY96 actual deposits, see p. 745 of FY2000 Budget Appendix.

Note.--FY99 tax revenue line includes an $87M intergovernmental transfer from the Y2K emergency supplement appropriation (P.L. 105-277). [pp.745 and 950, FY200 Budget Appendix] Spending of
  that Y2K transfer appears in the facilities and equipment (F&E;) account.

                   How the Current AIP Program Works

    There are more than 18,000 airports in the U.S. but only 
3,304 are eligible for Federal funding under the Airport 
Improvement Program (AIP).
    Unlike some of the Committee's other programs, the AIP has 
not traditionally included special earmarks. Instead, the money 
is distributed by formulas that are set forth in the law. These 
formulas are described below.
    The law 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 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;
          65 cents for each of the next 500,000 passengers; and
          50 cents for each additional passenger boarded.
    Regardless of the number of passengers boarded, the minimum 
entitlement is $500,000 per year and no primary airport is 
entitled to more than $22 million per year. Large and medium 
hub \1\ airports that choose to collect a passenger facility 
charge (PFC) receive only half their entitlement.
---------------------------------------------------------------------------
    \1\ 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.
---------------------------------------------------------------------------
    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. A hub airport can 
retain the right to receive its entitlement money for 2 years 
and a non-hub can keep it for 3 years. Entitlement money 
deferred to a later year is referred to as carryover 
entitlement.
    Cargo entitlement.--Cargo service airports are airports 
that are served by cargo-only (freighter) aircraft whose total 
weight are more than 100 million tons and other airports that 
FAA finds will be served primarily by freighter aircraft. These 
airports are entitled to share in a pool of money that equals 
2.5% of total AIP funds. A cargo service airport shares in this 
pool in the proportion to which the total weight of cargo-only 
aircraft landing there is to the total weight of cargo aircraft 
at all other airports. No airport may receive more than 8% of 
this 2.5%.
    State entitlement.--The States, territories, and 
possessions share entitlement funds that are equal to 18.5% of 
total AIP funds. Each State's share of this entitlement is 
based on a formula that takes into account the population and 
area of the State. Money from this entitlement goes to general 
aviation airports (airports used by private planes) and to 
airports with less than 10,000 passengers per year.
    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 makes the 
grants to individual airports. Nine States (Illinois, Michigan, 
Missouri, New Jersey, North Carolina, Pennsylvania, Tennessee, 
Texas, and Wisconsin) participate in the State Block Grant 
program. Under this program, the FAA gives the State aviation 
agency responsibility to manage its AIP allocation and the 
State, not the FAA, decides which general aviation airports 
will receive a grant.
    Alaska entitlement.--By law, Alaskan airports are entitled 
to receive at least the same amount of money that they received 
in 1980. This year, they will receive $10.5 million. The $10.5 
million is in addition to whatever those airports will receive 
under the above entitlements.
    Discretionary fund.--Any money left over after the above 
entitlements are funded can be spent by the FAA at its own 
discretion. However, this discretionary fund is subject to two 
set-asides:
    (1) Noise set-aside.--Current law sets aside 31% of this 
discretionary fund for noise projects. These could include such 
things as buying property for a noise buffer or soundproofing 
buildings.
    (2) Military airports.--Under the military airport program 
(MAP), FAA selects 12 current or former military airports to 
share in a set-aside that is equal to 4% of the discretionary 
fund. 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.
    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 be spent on airport 
projects that will enhance capacity, safety, or security, or 
reduce noise.
    Until recently, total AIP funding had been declining. At 
the same time, FAA hadbeen issuing letters of intent (LOIs) to 
several airports. An LOI is a commitment to pay a certain amount of AIP 
money to an airport over a specified number of years to fund an 
important project. These commitments are predominantly funded from the 
discretionary portion of AIP.
    In the past, as the overall AIP program declined, much 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 or fund 
other important projects from the discretionary fund.
    As a result, the law imposes a floor on the discretionary 
fund of $148 million per year plus the amount needed to fund 
outstanding LOIs issued before January 1, 1996. If the above-
described entitlement and set-aside formulas would not leave at 
least that amount in the discretionary fund, all entitlements 
and set-asides must be cut by a proportionate amount. In the 
past, this has resulted in across-the-board cuts in 
entitlements and set asides of as much as 23% to ensure the 
required minimum discretionary fund.
    As a corollary to the minimum discretionary fund, the law 
sets a cap on the discretionary fund as well. Under this 
provision, if total AIP funding is high enough so that the 
discretionary fund is more than the cap, any amount in that 
fund above the cap would be divided 1/3 to general aviation 
airports, 1/3 to military airports, and 1/3 to noise abatement 
programs.
    In 1998, total AIP money was high enough so that the 
discretionary fund's cap was exceeded. Although, the 
Appropriations Act limited the additional money for military 
airports and noise abatement programs,\2\ it did allow an 
additional $29.9 million to be spent on general aviation 
airports. The discretionary cap has since been repealed by 
Public Law 106-6.
---------------------------------------------------------------------------
    \2\ Public Law 105-66, 111 Stat. 1431, October 27, 1997.
---------------------------------------------------------------------------
    Federal share.--As a general rule, the Federal share of an 
AIP project cost is 90%. However, at medium and large hub 
airports (defined as airports that enplane .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 
.05% or less of the total annual enplanements in the U.S.) and 
75% at hubs.
    Passenger facility charge.--In 1990, the Committee became 
concerned that the AIP program would not be able to meet the 
future infrastructure needs of U.S. airports. Consequently, the 
1990 AIP reauthorization law \3\ 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 funds by 
providing more money for runways, taxiways, terminals, gates 
and other airport improvements.
---------------------------------------------------------------------------
    \3\ Public Law 101-508, 104 Stat. 1388-357, November 5, 1990.
---------------------------------------------------------------------------
    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 FAA 
approves it.
    At the beginning of this year, FAA had approved PFCs at 301 
airports and 273 were actually collecting money. The total 
approved collections are over $23 billion. This year, FAA 
estimates that airports will collect $1.44 billion in PFCs.
    If a medium or large hub airport charges a PFC, it must 
turn back up to 50% of its AIP entitlement. These foregone 
entitlements are 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.
    AIP distribution.--According to the FAA, during the fiscal 
years between 1982 and 1996, the AIP money was spent by project 
type as follows:
          52.76% for runways; taxiways; and aprons;
          11.2% on noise control projects;
          7.82% for land purchases;
          6.03% on safety and security;
          5.2% on buildings;
          4.78% on airport roads; and
          the remainder on miscellaneous projects such as 
        lighting and planning.
    According to the General Accounting Office (GAO), in 1997, 
AIP money was distributed by airport size as follows:
          25% to the 2,764 general aviation airports;
          24% to the 29 large hub airports;
          17% to the 42 medium hub airports;
          16% to the 70 small hub airports; and
          19% to the 272 nonhub airports.

                         Trend in AIP Spending

    Total AIP spending has increased recently after several 
years of decline. In 1982, $450 million was authorized and 
appropriated for AIP. AIP spending peaked at $1.9 billion in 
1992, dropped to a low of $1.45 billion in 1995, and has begun 
to slowly climb since then.
    Last year, the Committee approved legislation (H.R. 4057, 
H. Rept. 105-639) that would have reauthorized AIP and provided 
contract authority of $2.347 billion for the AIP program. This 
legislation passed the House on August 4, 1998. However, it was 
not enacted because it could not be reconciled with companion 
Senate legislation (S. 2279) before Congress adjourned.
    To ensure that the AIP program did not lapse, a short-term 
extension was included in the Omnibus Consolidated and 
Emergency Supplemental Appropriations Act for Fiscal Year 1999 
(P.L. 105-277, See H. Rept. 105-825, at 608). This legislation 
provided contract authority for the AIP program for only 6 
months and conditioned obligation beyond $975 million on 
additional contract authority.
    The 6-month AIP reauthorization meant that FAA would not be 
able to issue airport grants after March 31, 1999. It also cut 
in half the funds that would otherwise be available for such 
grants.
    The practical effect of the Omnibus bill was to limit AIP 
spending to $975 million. This was a dramatic reduction from 
the $1.7 billion available in 1998 for AIP grants and the $1.95 
billion that would be available in 1999 if the program were 
authorized for a full year.
    To prevent a lapse in the program, the Committee approved 
H.R. 99 on January 7, 1999 (H. Rept. 106-3). This bill would 
have reauthorized and provided contract authority for the FAA's 
1999 AIP program for the 6 months remaining in the fiscal year. 
It passed the House on February 3, 1999. However, the Senate 
insisted on only a 2-month extension of the AIP program, which 
was ultimately enacted (P.L. 106-6).
    Enactment of this legislation allowed FAA to make grants 
for airport improvements until May 31, 1999 and provided $325 
million more for AIP. This raised the amount available to $1.3 
billion. More recently, legislation was enacted to extend the 
program until August 6, 1999 and make more money available. 
However, the amount available is still less than the $1.95 
billion that would be available for AIP if the program were 
fully authorized. This $1.95 billion represented the highest 
funding level that AIP has ever received. However, it would 
still not fully utilize the money that is available in the 
aviation trust fund and collected in aviation taxes. Nor would 
it come anywhere near to meeting our nation's airport 
infrastructure needs as identified by GAO and others.
    The Committee remains very concerned that users are paying 
increasing levels of taxes into the Trust Fund but that 
available money is not being used for the needed upgrades and 
expansion of our airport and air traffic control 
infrastructure.

                     The Need for Trust Fund Reform

    During the past decade, aviation taxes have increased 
dramatically. In 1990, airline passengers and other users of 
the air transportation system paid $3.7 billion in taxes and 
fees for their use of that system. By 1995, taxes had increased 
to $5.5 billion. Now, in 1999, it is estimated that aviation 
users will pay over $10 billion in aviation taxes and fees, 
almost triple the amount that they paid at the beginning of the 
decade and almost double what they paid just 4 years ago.
    Taxes have increased both because of the increase in 
passengers and aviation activity and because aviation tax rates 
were dramatically increased in the Taxpayer Relief Act of 1997 
(Public Law 105-34, 111 Stat. 929).
    All the aviation taxes collected go into a trust fund that 
was created in 1970. When this aviation trust fund was created, 
it was supposed to pay for improvements in the aviation 
infrastructure, such as airport improvements and the 
modernization of air traffic control equipment.
    While tax revenues have increased, spending has not 
necessarily followed. Expenditures from the trust fund have 
consistently been less than the revenues.
    Last year, $7.7 billion in aviation tax revenue was 
collected but only $5.7 billion was spent, and only $3.8 
billion was spent on infrastructure (airports and air traffic 
control). This year, $10.1 billion will be collected and $8.2 
billion will be spent but only half of this on infrastructure 
improvements.
    The problem is that this trust fund is part of the unified 
budget. As a result, it does not operate like a true trust 
fund. Under current budget rules, there is no assurance that 
tax revenues deposited in the trust fund will actually be spent 
on aviation infrastructure needs. Arbitrary budget caps often 
limit the amount that can be spent.
    In fact, over time, aviation infrastructure needs have been 
dramatically under-funded. And, on occasion, money has been 
taken out of the aviation trust fund to meet general budget 
needs.\4\ More often, the money is not spent in order to allow 
increased spending under the budget caps for other programs 
unrelated to aviation.
---------------------------------------------------------------------------
    \4\ Section 502 of Public Law 102-581, 106 Stat. 4898, October 31, 
1992.
---------------------------------------------------------------------------
    As a result, by the end of this year, the Congressional 
Budget Office (CBO) projects that the uncommitted balance in 
the trust fund will be $6.5 billion and the cash balance will 
be $12 billion. It would be even higher if not for the fact 
that the taxes temporarily expired a few years ago.
    In 10 years, if nothing is done, CBO projects that the 
uncommitted balance will balloon to $61 billion and the cash 
balance to $71.5 billion!
    This is clearly unacceptable. If the government is not 
going to spend the money, then it should not be collecting the 
tax. The only thing worse than actually paying the taxes is not 
getting the promised benefit from it.
    Last year, the Committee confronted the same problem in 
surface transportation. People who used the roads were paying 
gas taxes into a trust fund with no assurance thatthe money 
would be spent. That problem was fixed in the TEA-21 legislation 
(Public Law 105-178) by creating budget ``firewalls'' to ensure that 
all the gas tax money would be spent on road and transit improvements.
    Now, the reported bill would do essentially the same thing 
for aviation that was done for surface transportation last 
year. It unlocks the trust fund to ensure that the money can be 
spent to meet aviation infrastructure needs.
    And the needs are clearly significant. Consider the 
following:
          The number of people flying has increased 
        significantly. In 1998, there were 643 million 
        passenger enplanements in the U.S. This is a 25% 
        increase from just 5 years ago. FAA estimates that 
        passenger enplanements will increase 43% in the next 10 
        years to 917 million by 2008 and approach 1 billion by 
        2010.\5\
---------------------------------------------------------------------------
    \5\ Federal Aviation Administration, Aerospace Forecasts Fiscal 
years 1999--2010, X-13 (March 1999) [Hereinafter cited as FAA 
Forecasts]. These enplanements numbers actually understate the true 
level of aviation activity since they do not include enplanements on 
charter airlines (which totaled about 11 million in 1998) or those on 
foreign airlines departing the U.S. (which totaled about 50 million).
---------------------------------------------------------------------------
          Increased travel has strained our aviation system and 
        has increased delays. In 1997, FAA reported that 27 
        airports experienced over 20,000 hours of aircraft 
        delays. If infrastructure improvements are not made, 
        the number of airports experiencing such delays is 
        expected to increase to 31 by 2007.\6\
---------------------------------------------------------------------------
    \6\ Federal Aviation Administration, 1998 Aviation Capacity 
Enhancement Plan, 1-31 (December 1998) [Hereinafter cited as FAA 
Capacity Enhancement Plan].
---------------------------------------------------------------------------
          In 1997, delays caused by FAA's inability to handle 
        the air traffic increased 10% from the previous year. 
        Delays caused by problems with air traffic control 
        equipment increased 9%.\7\
---------------------------------------------------------------------------
    \7\ Id, at 1-27.
---------------------------------------------------------------------------
    Although aircraft technology continues to improve, the time 
to fly between several major cities has increased over the past 
10 years simply due to the increased traffic and the inability 
of the current infrastructure to handle it. To account for 
delays, airlines have increased scheduled flight times on 
nearly 75% of the 200 highest-volume domestic routes.\8\ 
Nevertheless, in 1998, 23% of major air carrier flights were 
delayed.\9\
---------------------------------------------------------------------------
    \8\ Audit Report, Office of Inspector General, Department of 
Transportation, ``Air Carrier Departure Data'', CE-1999-054, 8, ft 11, 
February 5, 1999.
    \9\ Department of Transportation, Air Travel Consumer Report, 5 
(February 1999).
---------------------------------------------------------------------------
    The Air Transport Association (ATA), which represents the 
major air carriers, estimated that delay cost to the airlines 
exceeded $2.4 billion in 1997.\10\ And this does not even 
include the cost and inconvenience to passengers. American 
Airlines has estimated that by 2014 it expects delays to 
increase by a factor of three, bringing its hub and spoke 
system to its knees!
---------------------------------------------------------------------------
    \10\ FAA Capacity Enhancement Plan, Supra note 6, at 1-32.
---------------------------------------------------------------------------
    ATA also estimates that the potential benefits from FAA's 
Free Flight program (which would allow airlines more freedom to 
choose their air routes and thereby increase efficiencies and 
reduce delays) could save the industry $3.5 billion annually by 
2015. If the Free Flight program is delayed due to funding 
constraints, the benefits will be delayed as well.
    Air traffic control inefficiencies are only part of the 
problem.
    Airports report, and the GAO agrees, that airport needs 
equal $10 billion a year.\11\ Airport resources (bonds, 
passenger facility charges, airport fees, and AIP grants) only 
equal $7 billion a year.\12\ The result is a $3 billion annual 
funding gap that needs to be closed. It has been reported that 
one reason for growing delays is that of the 100 top U.S. 
airports, 59 have proposed runway construction but such 
projects often get held up for lack of money.\13\
---------------------------------------------------------------------------
    \11\ U.S. General Accounting Office, ``Airport Development Needs 
Estimating Future Costs'' (April 1997).
    \12\ U.S. General Accounting Office, ``Airport Financing: Funding 
Sources for Airport Development'' (March 1998) [Hereinafter cited as 
GAO Airport Financing Report].
    \13\ FAA Capacity Enhancement Plan, supra note 6, at 3-47 and 
``Wall Street Journal,'' February 10, 1999.
---------------------------------------------------------------------------
    The average cost of a new 10,000-foot commercial runway 
ranges from $100 to $300 million. The cost of building new or 
extending existing runways can change dramatically depending on 
the surrounding landscape and the requirements for 
environmental mitigation. The 12,000-foot runway at Salt Lake 
City that opened in 1995 cost $120 million. In contrast, the 
new 8,500 runway proposed for the Seattle Airport is estimated 
to cost $587 million due to the need for significant amounts of 
fill dirt. A proposed runway in San Francisco may cost more 
than $2 billion.
    New or longer runways can make the most dramatic impact on 
airport capacity. The $342 million 8,500 foot runway that 
opened at the Dallas/Fort Worth International Airport (DFW) in 
1996 means that the airport has nearly equal capacity during 
good and bad weather, thereby reducing delays at DFW and around 
the nation.\14\
---------------------------------------------------------------------------
    \14\ Id.
---------------------------------------------------------------------------
    The international airports in Philadelphia, San Francisco, 
St. Louis, and Seattle all have closely spaced parallel 
runways, which means that capacity is cut in half during bad 
weather. New runway construction is proposed for all four of 
these airports.
    FAA says that financing constraints and the need to study 
and address environmental concerns can mean that new runways 
and runway extensions may take more than 10 years from proposal 
to completion.
    According to a recent General Accounting Office (GAO) 
report, assuming today's AIP funding levels, airports will need 
$2.37 billion more simply to maintain current runways over the 
next 10 years.\15\
---------------------------------------------------------------------------
    \15\ U.S. General Accounting Office, ``Airfield Pavement: Keeping 
Nation's Runways in Good Condition Could Require Substantially Higher 
Spending'' 4 (July 1998).
---------------------------------------------------------------------------
    It is not only the large airports that need infrastructure 
investment. Indeed, although the funding shortfall tends to be 
greater in dollar terms at the large airports, it is greater in 
percentage terms at the smaller airports. According to GAO, the 
gap between infrastructure funding needs and the airports' 
financial ability to meet those needs is $1.5 billion and 29% 
at large hub airports but $250 million and 44% at non-hub 
airports. The gap balloons to $860 million and 53% at general 
aviation airports.\16\
---------------------------------------------------------------------------
    \16\ GAO Airport Financing Report, Supra Note 12.
---------------------------------------------------------------------------
    The nation's 71 largest airports accounted for nearly 80% 
of the $7 billion raised annually for airport infrastructure 
needs. By contrast, the 3,233 smaller airports have 
approximately $1.4 billion for infrastructure investment, half 
of which is from AIP. Smaller airport needs are twice as great 
as their funding sources.\17\
---------------------------------------------------------------------------
    \17\ Id.
---------------------------------------------------------------------------
    Smaller airports are often served by regional or commuter 
airlines flying aircraft with 60 seats or fewer and by general 
aviation or business aircraft. One of the roles of smaller 
airports is to provide feeder service to large hubs served by 
the major commercial air carriers.
    In 1997, the regional/commuter traffic grew 3% from the 
previous year--almost the same as that of larger commercial air 
carriers. Business aircraft hours are also estimated to 
increase. From 1996 to 1997, the number of hours flown by 
turbine-powered jets (often used by businesses and at smaller 
airports) increased 14.9%. FAA believes that business turbine-
powered aircraft hours will increase nearly 60% by 2010.\18\
---------------------------------------------------------------------------
    \18\ FAA Forecasts, Supra Note 5, at pages V-18 to V-21.
---------------------------------------------------------------------------
    However, investment is needed not only to ensure the more 
efficient movement of cargo and passengers. It is also crucial 
to safety.
    The air traffic control system includes 32,500 facilities 
and systems. Several of those facilities are over 20 years old. 
The air traffic control equipment in the facilities controlling 
high altitude flight are over 30 years old. FAA is in the 
process of replacing or upgrading many of these expensive 
systems.
    The FAA is still using computers that are so old that they 
are no longer used anywhere else in the world and replacement 
parts are no longer manufactured. It has been reported that FAA 
maintenance workers must ``search the streets'' to find parts 
for jury-rigged repairs.\19\ When the old equipment breaks 
down, flights must be delayed to avoid endangering passengers.
---------------------------------------------------------------------------
    \19\ ``USA Today,'' January 29, 1999.
---------------------------------------------------------------------------
    In 1998, the FAA experienced 101 significant system outages 
(more than 10 minutes), where air traffic controllers lost some 
or all of the primary systems that help them track aircraft 
location and flight information. Forty-three of these outages 
lasted longer than an hour, and one lasted 5 days.
    GAO has stated that FAA will still need $17 billion from 
1999 through fiscal 2004 to modernize the air traffic control 
system.\20\ That is an average of $2.8 billion a year. FAA only 
received $2.1 billion in 1999.
---------------------------------------------------------------------------
    \20\ U.S. General Accounting Office, ``Air Traffic Control: Status 
of FAA's Modernization Program,'' 2 (December 1998).
---------------------------------------------------------------------------
    The FAA is trying to expand airport capacity and modernize 
the air traffic control system. But this will take money, in 
many cases, a great deal of money. That money is in the 
aviation trust fund and could be used if it were not for the 
current budget caps that are unrelated to the trust fund 
revenue.
    Just in the past decade, two separate Presidential 
Commissions have warned of impending aviation gridlock and have 
called for Trust Fund reforms. In 1993, the National Commission 
to Ensure a Strong Competitive Airline Industry urged, at page 
9, the ``removal of current [aviation] expenditures and 
revenues from the federal budget.'' And, in 1997, the National 
Civil Aviation Review Commission recommended, at page I-4, that 
``the FAA's funding and financing system receive a federal 
budget treatment ensuring that revenues from aviation users and 
spending on aviation services are directly linked and shielded 
from discretionary budget caps.''
    The reported bill answers the call of these Presidential 
Commissions and meets the aviation needs described above by 
taking the aviation trust fund off budget and continuing the 
current general fund payment. Once the trust fund is off 
budget, the receipts and disbursements of the fund would no 
longer be counted as new budget authority, outlays, receipts, 
deficit or surplus for purposes of the President's Budget, the 
congressional budget, or the Balanced Budget and Emergency 
Deficit Control Act of 1985, nor would they be subject to any 
general budget limitation imposed by statute. Expenditures from 
the fund would still be made available through annual 
appropriations. Funding levels for aviation operations, capital 
and research programs would continue to be determined annually 
in appropriations acts, up to the amount authorized for each 
program. However, with the trust fund off-budget, the 
appropriators would no longer have an incentive to underspend 
aviation trust fund monies in order to overspend on non-
aviation programs. This budget treatment should ensure a closer 
match between income to the trust fund and the spending from 
that fund. In short, it will allow the trust fund to operate as 
it was originally intended and as most people believe it 
should.
    The increased aviation spending in the reported bill would 
not come at the expense of other Federal programs, nor would it 
touch the Social Security surplus. The bill provides $14 
billion in spending above historic baseline levels, with the 
increases occurring entirely in fiscal years 2001 through 2004. 
This increased spending would be paid for outside the budget 
caps from the $14 billion in aviation taxes that, under 
historic funding patterns, would be collected but not spent 
during this time period, and would otherwise be used to finance 
general tax cuts. It is wrong to use aviation taxes to finance 
a general tax cut, as proposed in the concurrent resolution on 
the budget for fiscal year 2000. The Committee believes that 
these aviation taxes should be used for the 
aviationimprovements in the reported bill which would reduce the 
proposed $778 billion general tax cut to $764 billion.
    This is an issue of basic tax fairness. If the House 
decides not to spend the aviation taxes for aviation 
improvements, then the aviation taxes should be reduced 
accordingly. Under this scenario, aviation users, rather than 
general taxpayers, should receive a tax cut.

                    Airport and Airway Improvements

    Authorized funding levels.--As a result of taking the trust 
fund off budget, the reported bill is able to fully fund the 
various aviation programs and thereby ensure that the needs of 
the system are met. The bill reauthorizes AIP, F&E;, and FAA 
operations for the remainder of this year and for the 5 years 
thereafter, as follows:
          $2.475 billion in FY 2000 for the Airport Improvement 
        Program increasing to $4 billion in FY 2001 when the 
        budgetary changes in reported bill take effect and 
        growing to $4.35 billion by FY 2004;
          $2.5 billion in fiscal year 2001 for Facilities and 
        Equipment, increasing to $3 billion for each year 
        thereafter;
          $6.45 billion for FAA operations in FY 2001, 
        increasing by 6.8% for each year thereafter.
    General fund payment.--Under the reported bill, the funding 
for AIP and F&E; will continue to come entirely from the trust 
fund and there will continue to be a general fund payment to 
partially support FAA operations. That payment will continue to 
be based on the formula in existing law with one modification. 
The current law formula is designed to encourage full funding 
of the capital programs. The formula limits the trust fund 
share of FAA operations to half of the amount spent on the 
capital programs or enough so that the trust fund supports 
72.5% of the FAA's total budget, whichever is less. The amount 
not paid for by the trust fund is covered by the general fund 
payment.
    As a result of this formula, the FAA has historically 
received about 39% of its budget from the U.S. Treasury's 
general fund. Over the last 5 years, 32% of the FAA's budget 
was funded with general fund monies.
    To ensure that any future growth in aviation spending comes 
from the trust fund, the reported bill caps the general fund 
payment at the amount that was appropriated in 1998, the last 
year that the above described formula was in effect. In that 
year, the payment was $3.351 billion.
    The Airport and Airway Trust Fund was originally 
established as a means for supporting aviation capital needs. 
The intent was that, if there was money left over after the 
capital needs were met, it could be used to help pay for FAA 
operating expenses.
    In its first few years, the trust fund was often 
exclusively used for the capital programs. The FAA's operating 
budget was supported entirely by the general fund. Over time, 
the principal that the trust fund would be used exclusively for 
capital has been eroded. In recent years, more money from the 
trust fund has been used to pay FAA salaries and expenses. 
However, the law has always limited the amount of trust fund 
monies that could be used for that purpose, 49 U.S.C. 48104(c). 
The difference was made up by the general fund payment which, 
as noted above, has usually been somewhat more than 30% of the 
FAA capital and operating budget.
    The Committee continues to believe that a general fund 
payment is necessary and appropriate. The general fund payment 
is justified by the variety of services the agency provides 
including, aviation safety and security, the costs of the 
military's use of the air traffic system, and the aviation 
benefits provided to the society as a whole.
    Aviation plays a central role in providing for the general 
health and safety of our communities. These services include 
agricultural application, cattle management, air ambulance 
services, medical evacuation, oil and gas pipeline patrol, 
airborne law enforcement, environmental analysis, topographical 
surveys, and news and traffic reporting. These services have 
widespread public benefits to our society. The aviation 
industry has contributed to the general fund in the past 
through fuel taxes and continues to contribute through its 
payment of personal and corporate income taxes.
    Both Presidential Commissions mentioned above called for a 
continued general fund contribution. The 1993 Commission 
recommended, at page 16, that the general fund payment be 30% 
``in recognition of the overpayment by airline users, and the 
public benefits of aviation.'' The National Civil Aviation 
Review Commission stated that ``the cost of safety regulation 
and certification should be borne by a general fund 
contribution as these activities are consistent with the 
government's traditional role of providing for the general 
welfare of the citizens and are clearly in the broad public 
interest.''
    The general fund is necessary to support aviation security 
because terrorist attacks against aviation are actually 
targeted at our nation, not an airline. As concluded by the 
White House Commission on Aviation Safety and Security ``* * * 
terrorist attacks on civil aviation are directed at the United 
States, and that there should be an ongoing federal commitment 
to reducing the threats that they pose.''
    Military aircraft and government aircraft use the aviation 
system; however, they do not pay taxes. The general fund 
payment represents their payment in lieu of taxes. The FAA also 
plays an active role in national air defense by jointly 
monitoring U.S. airspace with the Defense Department for signs 
of hostility.
    Given the important contributions that a safe and efficient 
air transportation system makes to our nation and its economy, 
it seems only fair that the general taxpayer bear some of the 
regulatory costs.
    Passenger Facility Charge (PFC).--The PFC program was 
created in 1990 to supplement AIP funding. The Committee 
continues to believe that this program should play an important 
role. Accordingly, the reported bill gives new flexibility to 
local communities to levy PFCs above the current $3 cap.
    Even at the higher funding levels in this bill, there will 
be airports, particularly large ones, that will be unable to 
fund projects with AIP dollars alone. Many of these projects 
could make a significant contribution to safety, security, 
increased competition, reduced congestion, and reduced noise. 
With the higher PFC in the reported bill, those projects will 
now be able to move forward.
    The Committee does remain concerned, however, that PFCs are 
not always used for the highest priority projects. According to 
the FAA, in 1996, the $1.1 billion in PFC funds were 
authorized, as follows:
          35% for airside projects such as runways, taxi-ways 
        and safety related projects;
          30% for landside projects, primarily terminal 
        buildings;
          17% to pay interest on bonds;
          11% for noise abatement projects; and
          6% for roads.
    To ensure that the higher PFC is used for important airside 
projects in the first instance, the reported bill directs the 
FAA not to approve PFC applications for road, transit, or 
terminal projects unless it finds that the airport is taking 
care of the airside needs of the airport.
    These additional restrictions, applicable only to proposed 
PFCs for more than $3, mean that FAA will have more 
responsibility to fully review an application for a higher PFC 
than it does for the existing $3 PFC where approval tends to be 
almost automatic.
    Those medium and large hub airports that are approved for 
the higher PFC would have to give up 75% of their entitlement. 
This PFC turn-back would continue to go into the small airport 
fund. This 75% is more than the 50% turn-back that will still 
be required of those medium or large hub airports that charge a 
PFC of $3 or less.
    Specific authorizations.--The Committee encourages FAA to 
review the costs and benefits of investing in innovative 
technologies for airport use. This should include, but is not 
limited to, using adjustable lighting extensions during and 
after airport facility construction and anti-skid material and 
reflector strips for airport uses. These and similar low-cost 
products and technologies could be very cost-beneficial for 
airports.
    The reported bill also includes specific authorizations for 
universal access security systems at airports, wildlife hazard 
mitigation measures, an office dedicated to infrastructure 
development for both general and helicopter aviation, and the 
development of air traffic control infrastructure for the new 
tilt-rotor aircraft. Specific authorizations are included for 
these items to demonstrate the Committee's interest in these 
issues. They are discussed further below.
    Universal access systems (UAS).--Two million dollars was 
appropriated in 1993 for the development of a Universal Access 
System ``to cover the initial costs for implementing a 
standardized [airport access control] computer-based system.'' 
The impetus for this expenditure came as a result of increased 
security requirements and problems associated with 
implementation of airport automated access control under 14 CFR 
Part 107.14. One of these problems, identified in a 1995 GAO 
report, is that of ensuring that future access control system 
installations are standardized to realize greater efficiency. 
FAA initially estimated that access control system costs would 
total $211 million from 1989-1998. The industry, utilizing AIP 
and other funds, actually spent about $654 million, more than 
three times the FAA's estimate.
    Another problem pertains to transient airline employees, 
such as flight crews, who are not issued access control cards 
at each airport to which they travel, thereby necessitating 
that they either go through screening or utilize other methods 
of reaching secured areas to which they have authorization.
    A joint industry task force was created under the guidance 
of the Aviation Security Advisory Committee (ASAC) to develop 
and test a UAS prototype at three airports with three 
participant air carriers. The test was successfully conducted 
in 1996. UAS technical documents have been approved by the FAA, 
which is publishing them for use by the aviation industry.
    To create the standardized access control system that is 
needed, the reported bill authorizes $8 million for the 
purchase, set up, operation and maintenance costs associated 
with the UAS Central Data Base, plus installation of the 
necessary equipment at large airports. This would include UAS 
portals for employees at each airport, performance of necessary 
engineering work and providing software upgrades.
    Wildlife hazard mitigation.--Since 1995, 74 people have 
been killed in collisions worldwide between aircraft and birds 
and four larger aircraft have been destroyed. One of these 
accidents resulted from a USAF AWACs E-3 (modified B707) 
striking a flock of geese in Elmendorf Air Force Base in Alaska 
in September 1995, which resulted in the loss of 24 lives. By 
the FAA's estimate, over $250 million a year is lost to U.S. 
aviation due to conflicts with wildlife.
    Resident/non-migratory goose populations tripled from 1985-
1995. Goose collisions with aircraft have doubled since 1990. 
From 1992-1996, commercial aviation accounted for 75% of the 
1,727 strikes. Experts have determined that there is a 25% 
chance of a hull loss by the year 2006 due to a bird strike.
    The FAA's regulations require certificated airports to 
conduct ecological studies when air carriers experience 
multiple bird strikes, have damaging collisions with wildlife, 
or observe wildlife in size or numbers that could cause 
collisions. When such an eventoccurs, the FAA requires action 
but does not have ample wildlife management staff expertise to assist 
the airports. Therefore, FAA often refers airports to the U.S. 
Department of Agriculture's Wildlife Services biologists who have the 
expertise, but are not funded, to provide these services. USDA has 
developed wildlife hazard evaluations and management plans, and 
implemented these plans for some airports with the costs being fully 
reimbursed by the airports. As a result, wildlife-aircraft strikes have 
been reduced significantly at specific locations. For example, at John 
F. Kennedy International Airport, bird and deer strikes have been 
reduced by 70 and 100 percent, respectively. However, many airports 
have ongoing wildlife problems that have not been addressed in such a 
proactive manner.
    To address this problem, the reported bill authorizes 
$450,000 for wildlife hazard mitigation measures and management 
of the wildlife strike data base.
    Helicopters and tilt-rotor.--Emergency Medical Service 
(EMS) helicopters are responsible for saving thousands of lives 
annually by transporting patients to trauma centers for 
emergency care. It is often imperative that the patient arrive 
within one hour to provide a high probability of survival. In 
good weather conditions, this is usually not a problem. The 
difficulty arises when the weather is poor. Due to the absence 
of adequate IFR helicopter infrastructure to and from trauma 
centers, patient transport must be to airports with subsequent 
ground transport. This process often exceeds an hour, thereby 
reducing the chances of patient survival. Therefore the 
Committee urges the FAA to look into establishing a prototype 
helicopter infrastructure to support all-weather EMS for trauma 
patients including the use of current technologies such as the 
Global Positioning System (GPS). The FAA should also consider 
using private companies that are capable of developing the 
approach plates.
    The FAA has begun the process of revising its policies and 
procedures to make effective use of the capabilities of 
rotorcraft. The Committee is hopeful that the Air Traffic 
Control (ATC) System will in the future be able to provide 
dispatch reliability, or instrument flight rules (IFR) 
capability, for both helicopters and the newest rotorcraft 
technology--tiltrotor aircraft.
    The military tiltrotor, the V-22 Osprey, is now in 
production, and the first civil tiltrotor, the BB609, is in 
development. Both the V-22 and the BB609 will be in service 
soon and other tiltrotor variants will follow. Given the 
growing importance of rotorcraft in the U.S. air transport 
system, the Committee recommends that the FAA proceed with 
much-needed procedural and infrastructure improvements in a 
timely fashion and allocate the financial, administrative, and 
personnel resources necessary to implement and oversee these 
actions. These improvements could lead to increases in 
capacity, especially in short-haul markets in congested areas 
such as the northeast U.S.
    Runway incursions.--Runway incursions have increased during 
the last few years. Therefore, the reported bill specifically 
makes runway incursion prevention devices eligible for AIP 
funding.
    At a previous hearing, the Aviation Subcommittee became 
concerned that FAA's efforts to install sophisticated runway 
incursion prevention devices could experience delays.\21\ This 
was happening at the same time that the number of runway 
incursions was increasing. Yet relatively low-tech, inexpensive 
devices were discussed at that hearing that have been deployed 
successfully and could be used to help address this problem. 
The Committee urges the FAA to use the eligibility provided 
here to fund these devices at airports that will not receive 
Airport Surface Detection Equipment (ASDE) or the Airport 
Movement Area Safety System (AMASS) or to supplement those 
systems at the airports that will receive them.
---------------------------------------------------------------------------
    \21\ ``The Increasing number of Mishaps on our Nation's Runways'': 
Hearings Before the Subcommittee on Aviation of the House Committee on 
Transportation and Infrastructure, 105-47, 105th Congress, 1st Session 
(November 13, 1997).
---------------------------------------------------------------------------
    The reported bill (section 121) encourages FAA, in 
allocating discretionary grants, to give higher priority to 
installation of integrated in-pavement lighting systems and 
other runway and taxiway incursion prevention devices. Section 
121(a) makes it a national policy to address the risk of runway 
incursions. Section 121(b) lists integrated in-pavement 
lighting systems, and other runway and taxiway incursion 
prevention devices, among the types of safety devices of which 
airports are encouraged to make maximum use.
    In addition, FAA is directed to classify proposals for the 
installation of integrated (``smart'') in-pavement lighting 
systems for runways and taxiways, and other runway and taxiway 
incursion prevention devices using components meeting FAA 
specifications, as Safety/Security for determining ``Purpose 
Points'' and as Runway/Taxiway signs for determining ``Type 
Points'' in the general provisions formula published in 62 Fed. 
Reg. 45007-45010 (August 25, 1997).
    AIP formula.--In order to utilize the higher funding levels 
in the reported bill and meet the needs of all airports, both 
large and small, the following changes to the AIP distribution 
formula are made by the reported bill--
          A tripling of the entitlement for primary airports 
        beginning in FY 2001;
          A tripling of the minimum entitlement for small 
        airports to $1.5 million per year beginning in FY 2001;
          A tripling of the supplemental funding for Alaska 
        beginning in FY 2001;
          Removal of the $22 million cap on annual entitlements 
        for large airports beginning in FY 2001;
          An increase in the cargo entitlement from 2.5% to 3%;
          An increase in the State/general aviation airport 
        entitlement from 18.5% to 20% beginning in FY 2001;
          A new entitlement for general aviation airports 
        (beginning in FY 2001) that is based on the needs of 
        those airports as set forth in the FAA's National Plan 
        of Integrated Airport Systems \22\ (This will total 
        about $345 million per year);
---------------------------------------------------------------------------
    \22\ Federal Aviation Administration, National Plan of Integrated 
Airport Systems (NPIAS) (1998-2002), (March 1999).
---------------------------------------------------------------------------
          An increase in the noise set-aside from 31% of the 
        discretionary fund to 34% of that fund;
          An elimination of both the floor and the cap on the 
        discretionary fund, except that letters of intent are 
        protected; and
          The cap on the number of airports that can be 
        included in the military airport program is increased, 
        beginning in 2001, from 12 to 20, three of which must 
        be a general aviation airport.
    Small airport fund.--The higher funding levels in the bill, 
the tripling of primary airport entitlement, and the increase 
in the PFC turn-back from large airports charging the higher 
PFC will result in a dramatic increase in the small airport 
fund. This is the fund created when large airports charging a 
PFC are required to turn back some of their entitlement. 
However, the Committee has become concerned that many small 
airports seem to believe that money in the small airport fund 
is not being distributed to them as intended. The FAA insists 
that grants are being made to small airports from this fund in 
accordance with the law. To help resolve this discrepancy, the 
reported bill requires FAA to notify the recipient of a grant 
of the source of that grant when the source is the small 
airport fund.
    The reported bill (section 128) sets aside some money from 
the small airport fund to help non-hub airports meet the 
requirements of the new certification rules that will be 
imposed on them. Another section of the reported bill (section 
506) establishes a deadline for the FAA to issue those 
requirements. The purpose of section 128 is to fund what would 
otherwise be the unfunded mandate in section 506.
    The following spreadsheets show how the AIP money will be 
distributed among the various entitlements and set asides with 
the changes described above to the AIP distribution formula.

Est. AIP Funding for Fiscal Year 2000...................  $2,475,000,000
                    ========================================================
                    ____________________________________________________
Appropriation Limitation:
    Primary Airports....................................     530,447,948
    Cargo (3%)..........................................      74,250,000
    Alaska Supplemental.................................      10,672,557
    States (18.5%)......................................     457,875,000
    Carryover Entitlement...............................      94,818,379
                    --------------------------------------------------------
                    ____________________________________________________
      Subtotal Entitlements.............................   1,168,063,884
                    ========================================================
                    ____________________________________________________
Small Airport Fund:
    Non Hub Airports....................................      83,155,004
    Non Commercial Svc..................................      41,577,502
    Small Hubs..........................................      20,788,751
                    --------------------------------------------------------
                    ____________________________________________________
      Subtotal..........................................     145,521,257
                    ========================================================
                    ____________________________________________________
      Subtotal Non Discretionary........................   1,313,585,141
                    ========================================================
                    ____________________________________________________
Noise (34% of disc).....................................     394,881,052
MAP (4% of Disc)........................................      46,456,594
                    --------------------------------------------------------
                    ____________________________________________________
      Subtotal Disc Set-asides..........................     441,337,646
                    ========================================================
                    ____________________________________________________
C/S/S/N.................................................     540,057,909
Remaining Discretionary.................................     180,019,303
                    --------------------------------------------------------
                    ____________________________________________________
      Subtotal Other Discretionary......................     720,077,213
                    ========================================================
                    ____________________________________________________
      Subtotal Discretionary............................   1,161,414,859
                    ========================================================
                    ____________________________________________________
      Grand Total.......................................   2,475,000,000

Notes.--Funding level increased to $2.475 billion; Cargo Increased to 
3%; Noise Increased to 34%.

Est. AIP Funding for Fiscal Year 2000...................  $4,000,000,000
                    ========================================================
                    ____________________________________________________
Appropriation Limitation:
    Primary Airports....................................   1,591,343,845
    Cargo (3%)..........................................     120,000,000
    Alaska Supplemental.................................      32,017,671
    States (20%)........................................     800,000,000
    Carryover Entitlement...............................      94,818,379
                    --------------------------------------------------------
                    ____________________________________________________
      Subtotal Entitlements.............................   2,638,179,895
                    ========================================================
                    ____________________________________________________
Small Airport Fund:
    Non Hub Airports....................................     249,465,011
    Non Commercial Svc..................................     124,732,506
    Small Hubs..........................................      62,366,253
                    --------------------------------------------------------
                    ____________________________________________________
      Subtotal..........................................     436,563,770
                    ========================================================
                    ____________________________________________________
      Subtotal Non Discretionary........................   3,074,743,665
                    ========================================================
                    ____________________________________________________
Noise (34% of disc).....................................     314,587,154
MAP (4% of Disc)........................................      37,010,253
                    --------------------------------------------------------
                    ____________________________________________________
      Subtotal Disc Set-asides..........................     351,597,407
                    ========================================================
                    ____________________________________________________
C/S/S/N.................................................     430,244,196
Remaining Discretionary.................................     143,414,732
                    --------------------------------------------------------
                    ____________________________________________________
      Subtotal Other Discretionary......................     573,658,928
                    ========================================================
                    ____________________________________________________
      Subtotal Discretionary............................     925,256,335
                    ========================================================
                    ____________________________________________________
      Grand Total.......................................   4,000,000,000

Notes.--Funding level increased to $4 billion; Passenger entitlements 
and Alaska Supplemental Tripled; Cargo Increased to 3%; State 
apportionment increased to 20%; Noise Increased to 34%.

Est. AIP Funding for Fiscal Year 2000...................  $4,100,000,000
                    ========================================================
                    ____________________________________________________
Appropriation Limitation:
    Primary Airports....................................   1,591,343,845
    Cargo (3%)..........................................     123,000,000
    Alaska Supplemental.................................      32,017,671
    States (20%)........................................     820,000,000
    Carryover Entitlements..............................      94,818,379
                    --------------------------------------------------------
                    ____________________________________________________
      Subtotal Entitlements.............................   2,661,179,895
                    ========================================================
                    ____________________________________________________
Small Airport Fund:
    Non Hub Airports....................................     249,465,011
    Non Commercial Svc..................................     124,732,506
    Small Hubs..........................................      62,366,253
                    --------------------------------------------------------
                    ____________________________________________________
      Subtotal..........................................     436,563,770
                    ========================================================
                    ____________________________________________________
      Subtotal Non Discretionary........................   3,097,743,665
                    ========================================================
                    ____________________________________________________
Noise (34% of disc).....................................     340,767,154
MAP (4% of Disc)........................................      40,090,253
                    --------------------------------------------------------
                    ____________________________________________________
      Subtotal Disc Set-asides..........................     380,857,407
                    ========================================================
                    ____________________________________________________
C/S/S/N.................................................     466,049,196
Remaining Discretionary.................................     155,349,732
                    --------------------------------------------------------
                    ____________________________________________________
      Subtotal Other Discretionary......................     621,398,928
                    ========================================================
                    ____________________________________________________
      Subtotal Discretionary............................   1,002,256,335
                    ========================================================
                    ____________________________________________________
      Grand Total.......................................   4,100,000,000

Notes.--Funding level increased to $4.1 billion; Passenger entitlements 
and Alaska Supplemental Tripled; Cargo Increased to 3%; State 
apportionment increased to 20%; Noise Increased to 34%.

Est. AIP Funding for Fiscal Year 2000...................  $4,250,000,000
                    ========================================================
                    ____________________________________________________
Appropriation Limitation:
    Primary Airports....................................   1,591,343,845
    Cargo (3%)..........................................     127,500,000
    Alaska Supplemental.................................      32,017,671
    States (20%)........................................     850,000,000
    Carryover Entitlement...............................      94,818,379
                    --------------------------------------------------------
                    ____________________________________________________
      Subtotal Entitlements.............................   2,695,679,895
                    ========================================================
                    ____________________________________________________
Small Airport Fund:
    Non Hub Airports....................................     249,465,011
    Non Commercial Svc..................................     124,732,506
    Small Hubs..........................................      62,366,253
                    --------------------------------------------------------
                    ____________________________________________________
      Subtotal..........................................     436,563,770
                    ========================================================
                    ____________________________________________________
      Subtotal Non Discretionary........................   3,132,253,665
                    ========================================================
                    ____________________________________________________
Noise (34% of disc).....................................     380,037,154
MAP (4% of Disc)........................................      44,710,253
                    --------------------------------------------------------
                    ____________________________________________________
      Subtotal Disc Set-asides..........................     424,747,407
                    ========================================================
                    ____________________________________________________
C/S/S/N.................................................     519,756,696
Remaining Discretionary.................................     173,252,232
                    --------------------------------------------------------
                    ____________________________________________________
      Subtotal Other Discretionary......................     693,008,928
                    ========================================================
                    ____________________________________________________
      Subtotal Discretionary............................   1,117,756,335
                    ========================================================
                    ____________________________________________________
      Grand Total.......................................   4,250,000,000

Notes.--Funding level increased to $4.25 billion; Passenger entitlements 
and Alaska Supplemental Tripled; Cargo Increased to 3%; State 
apportionment increased to 20%; Noise Increased to 34%.

Est. AIP Funding for Fiscal Year 2000...................  $4,350,000,000
                    ========================================================
                    ____________________________________________________
Appropriation Limitation:
    Primary Airports....................................   1,591,343,845
    Cargo (3%)..........................................     130,500,000
    Alaska Supplemental.................................      32,017,671
    States (20%)........................................     870,000,000
    Carryover Entitlement...............................      94,818,379
                    --------------------------------------------------------
                    ____________________________________________________
      Subtotal Entitlements.............................   2,718,679,895
                    ========================================================
                    ____________________________________________________
Small Airport Fund:
    Non Hub Airports....................................     249,465,011
    Non Commercial Svc..................................     124,732,506
    Small Hubs..........................................      62,366,253
                    --------------------------------------------------------
                    ____________________________________________________
      Subtotal..........................................     436,563,770
                    ========================================================
                    ____________________________________________________
      Subtotal Non Discretionary........................   3,155,243,665
                    ========================================================
                    ____________________________________________________
Noise (34% of disc).....................................     406,217,154
MAP (4% of Disc)........................................      47,790,253
                    --------------------------------------------------------
                    ____________________________________________________
      Subtotal Disc Set-asides..........................     454,007,407
                    ========================================================
                    ____________________________________________________
C/S/S/N.................................................     555,561,696
Remaining Discretionary.................................     185,187,232
                    --------------------------------------------------------
                    ____________________________________________________
      Subtotal Other Discretionary......................     740,748,928
                    ========================================================
                    ____________________________________________________
      Subtotal Discretionary............................   1,194,756,335
                    ========================================================
                    ____________________________________________________
      Grand Total.......................................   4,350,000,000

Notes.--Funding level increased to $4.35 billion; Passenger entitlements 
and Alaska Supplemental Tripled; Cargo Increased to 3%; State 
apportionment increased to 20%; Noise Increased to 34%.

    PFC eligibility.--When the PFC program was created,\23\ one 
of the purposes was to build facilities, including gates, to 
help enhance competition at airports. However, in many cases, 
additional gates cannot be built unless related areas are built 
as well. Current section 40117(a)(3)(E) recognizes this by 
making the construction of ``gates and related areas'' eligible 
for funding with PFCs. However, the term ``related areas'' is 
not well defined. Section 151 of the reported bill addresses 
this problem by making clear that ``related areas'' includes 
the underlying structure of the building, but not the tenant 
finish-out.
---------------------------------------------------------------------------
    \23\ Section 9110 of the Omnibus Budget Reconciliation Act of 1990, 
Public Law 101-508, 104 Stat. 1388-357 (November 5, 1990); House Report 
101-581 at p. 15.
---------------------------------------------------------------------------
    This section also permits ``aircraft fueling facilities 
adjacent to an airport terminal building'' to be built with PFC 
funds. This provides flexibility for airports in determining 
what type of fueling facility/line/hydrant is used but does not 
make the construction of fuel farms eligible.

                           Management Reform

    The reported bill provides substantially more money for all 
FAA accounts including the Facilities & Equipment account, 
which pays for the air traffic control modernization program. 
This program has been criticized for cost overruns and delays. 
While the Committee believes that more funding is justified, 
management of FAA acquisition must be improved.
    Oversight Board.--The Committee does not want to simply 
provide more money to the FAA given the agency's past inability 
to adequately manage its funds. Therefore, Title III of the 
reported bill contains a number of reforms to improve the 
performance of the FAA, especially with regard to the 
performance of the air traffic control system.
    Section 301 creates an Air Traffic Control Oversight Board 
(Board) to oversee the FAA in its administration, management, 
conduct, direction, and supervision of the air traffic control 
system. The Board's oversight would include both the personnel 
and equipment necessary for the operation of the air traffic 
control system. This would include the air traffic services, 
the research and acquisitions lines of business, as well as the 
appropriate personnel in the regulation and certification line 
of business. Specifically, the Board will ensure that FAA meets 
the mission and objectives of its strategic plan; improves its 
ability to manage and accelerate air traffic control capacity 
and safety equipment purchase and installation; holds its 
managers more accountable for performance while providing more 
opportunities for training and education programs; and 
increases the efficiency and cost-effectiveness of air traffic 
control system operations.
    The Board will be composed of nine members. Six members 
will be appointed by the President and confirmed by the Senate 
and have expertise in customer service, management of large 
procurements, and other disciplines. At least one Board member 
should have a background in managing large organizations 
successfully. In addition, the head of one of the air traffic 
control employees' unions would be appointed by the President 
and confirmed by the Senate to sit on the Board. The Committee 
feels strongly about this provision because it will help ensure 
that FAA involves its employees more proactively in the 
acquisitions process as well as guaranteeing more employee 
accountability for specific procurement decisions. The final 
two members of the Board would be the Secretary of 
Transportation and the FAA Administrator.
    The Committee believes bringing this collective experience 
and expertise to bear will help improve FAA's management of 
large procurements and the efficiency of its operations. To 
further these goals, a position of chief operating officer will 
be created to implement the policies of the Board and meet the 
performance goals established by the Administrator and the 
Board.
    The Board created by section 301 is similar in structure to 
one established last Congress for oversight of the Internal 
Revenue Service.\24\ It is also consistent with the 
recommendations of the National Civil Aviation Review 
Commission which believed that an oversight board would help 
provide stability, continuity of leadership, and better 
business-like management to the FAA.
---------------------------------------------------------------------------
    \24\ Public Law 105-206, 112 Stat. 691, July 22, 1998.
---------------------------------------------------------------------------
    The Board will be responsible for reviewing and approving 
that portion of the FAA's budget that relates to the air 
traffic control system. To ensure more effective congressional 
oversight, the reported bill requires the President to submit 
the Board-approved budget to Congress together with the 
President's annual budget request for the FAA. The annual 
budget request would include the Administration's request for 
the air traffic control portion of the FAA. This may differ 
from the Board-approved budget for air traffic control. By 
receiving both, Congress will be in a better position to 
evaluate the financial needs of the air traffic control system.
    The Committee continues to be frustrated by the failure of 
the Administration to nominate the Management Advisory Council 
(MAC) members. The Oversight Board serves a different purpose 
than the MAC, which was created to provide more industry input 
into agency decision-making. The Committee expects the 
Administration to move forward expeditiously with the MAC 
nominations.
    Cost accounting study.--The reported bill also mandates a 
cost accounting study to ensure (1) that the costs of operating 
the FAA are reasonable and (2) that these costs have been 
accurately measured and fairly attributed to FAA's services and 
users.
    The Committee recognizes that the FAA has lacked the 
internal cost data necessary both to improve its efficiency and 
to assign costs accurately to services and/or users. Moreover, 
because the FAA has a monopoly on the provision of air traffic 
control and safety regulatory services--services whose 
consumption is also mandated by law--it is not generally 
possible for users to reduce their consumption of the services 
provided by the FAA. As a result, the FAA lacks many of the 
normal market incentives to operate efficiently. Under these 
circumstances, the Committee believes that the availability 
ofaccurate and reliable cost and performance data will make it far 
easier to identify and fix the FAA's funding, management and 
operational problems.
    Section 307 of the reported bill calls for the completion 
of independent assessments to test, validate, and thus help 
assure the Congress, the Administrator, and the users that the 
FAA's costs are comprehensively captured, accurately measured 
and fairly attributed to specific services and, ultimately, to 
specific users. In addition, the legislation calls for an 
independent comparison of FAA costs against certain internal 
and external benchmarks in order to help the Congress, the 
Administrator, and users identify those areas where FAA's 
efficiency and cost effectiveness could be improved.

                      Air Service and Competition

    The Airline Deregulation Act was enacted just over 20 years 
ago.\25\ This legislation phased out 40 years of government 
regulation, permitting airlines to fly where passenger demand 
dictated and charge fares that could be justified under free 
market conditions.
---------------------------------------------------------------------------
    \25\ Public Law 95-504, 92 Stat. 1705, October 24, 1978
---------------------------------------------------------------------------
    As a result of this legislation, passengers have enjoyed 
enormous benefits. Three hundred sixty-four million more 
passengers fly each year now than flew when the airlines were 
regulated.\26\ The number of scheduled departures has increased 
by 50% at smaller airports and 68% at larger ones.\27\ In 
addition, a review of annual reports from the National 
Transportation Safety Board shows that the fatal accident rate 
for airlines has decreased even as the number of flights has 
increased.
---------------------------------------------------------------------------
    \26\ FAA Forecasts, Supra Note 4, at page A-3.
    \27\ U.S. General Accounting Office, ``Airline Deregulation: 
Changes in Airfares, Service, and Safety at Small, Medium-Sized, and 
Large Communities'' 6 (April 1996).
---------------------------------------------------------------------------
    Most dramatic has been the effect on airfares. Depending on 
the source, airfares have dropped 28%,\28\ 33%,\29\ or 40% \30\ 
as a result of the free market forces unleashed by airline 
deregulation. This has provided savings to passengers of 
between $6 billion \31\ and $19 billion \32\ annually. Indeed, 
airline discounts have become such a prevalent part of the 
American cultural landscape that it is now commonly accepted 
that it may be cheaper to fly half way across the country than 
to go down the street to a nice restaurant.\33\
---------------------------------------------------------------------------
    \28\ ``Market-Based Solutions for Air Service problems at Medium-
Sized Communities'': Hearings before the Subcommittee on Aviation of 
the House Committee on Transportation and Infrastructure, 105-30, 105th 
Congress, 1st Session, (June 25, 1997) 129 [Hereinafter cited as ``Air 
Service Hearing''].
    \29\ ``Impact of Recent Alliances, International Agreements, DOT 
Actions, and Pending Legislation on Air Fares, Air Service, and 
Competition in the Airline Industry'': Hearings Before the Subcommittee 
on Aviation of the House Committee on Transportation and 
Infrastructure, 105th Congress, 2nd Session (April 1998) (Statement of 
Nancy E. McFadden, General Counsel, U.S. Department of Transportation) 
[hereinafter cited as ``Competition Hearing''].
    \30\ Thierer, ``20th Anniversary of Airline Deregulation: Cause of 
Celebration, Not Re-Regulation,'' The Heritage Foundation Backgrounder 
6 (April 22, 1998).
    \31\ Air Service Hearing, Supra Note 28, at 22.
    \32\ Thierer, Supra Note 30, at 7.
    \33\ J. Berendt, ``Midnight in the Garden of Good and Evil,'' at 25 
(1994).
---------------------------------------------------------------------------
    Unfortunately, although the benefits of the Deregulation 
Act are widespread, they are not universal. Some airports, 
particularly those serving small and medium-sized communities 
in the East and upper Midwest, have experienced higher fares 
and diminished service since deregulation.\34\ It has been said 
that deregulation has benefited 70% to 75% of the country and 
that the question is how to address the needs of the other 25% 
to 30% without ruining it for the majority of air 
travelers.\35\
---------------------------------------------------------------------------
    \34\ Air Service Hearing, Supra Note 28, at 61 (Statement of the 
U.S. General Accounting Office).
    \35\ Id, at 34.
---------------------------------------------------------------------------
    In February 1997, Chattanooga, Tennessee hosted the 
National Air Service Roundtable and in February 1998, Jackson 
Mississippi hosted a similar conference. Representatives from 
airports across the country, airlines, corporations, government 
officials, and others gathered to consider market-based 
solutions to local air service problems.
    A key conclusion of these conferences was that greater 
Federal, regional, State, and local efforts were needed to 
promote economic growth and attract both established and new 
airlines to serve medium-sized markets in the East, Southeast, 
and Upper Midwest.
    The Aviation Subcommittee held a hearing on June 25, 1997, 
which examined market-based solutions to air service problems 
experienced by some medium-sized and smaller communities across 
the nation. At that hearing, the Subcommittee heard from a 
number of witnesses, including representatives from airports 
and communities that have experienced higher fares and limited 
air service since the 1978 deregulation of the airline 
industry.
    As a result of these conferences and hearings, the 
Committee approved a bill (H.R. 2748), introduced by 
Subcommittee Chairman Duncan last year (H. Rept. 105-822). The 
legislation attempted to address some of the air service 
problems experienced by medium-sized and smaller communities 
without undermining the benefits most people have realized from 
airline deregulation. Title II of the reported bill builds on 
this earlier effort and makes similar changes to enhance air 
service, increase competition, and take advantage of the 
improved infrastructure that Title I of this legislation will 
provide.
    Slots.--One barrier to improved service that has often been 
cited \36\ is the High Density Rule (HDR).\37\
---------------------------------------------------------------------------
    \36\ Id, at 62 and 132.
    \37\ 14 CFR Part 93, Subpart K.
---------------------------------------------------------------------------
    At almost all airports in the U.S., there is no limit on 
the number of flights an airline can offer. However, there are 
four airports (O'Hare in Chicago, LaGuardia and Kennedy in New 
York, and Reagan National near Washington, D.C.) at which 
flights are limited by the HDR. The HDR was adopted in 1969 as 
a ``temporary'' measure to reducecongestion and delays. At the 
four airports covered by it, an aircraft must have a slot \38\ in order 
to take-off or land.
---------------------------------------------------------------------------
    \38\ A slot is a reservation for an aircraft to take-off or land at 
the airport.
---------------------------------------------------------------------------
    Although deregulation increased demand for access to these 
airports, many carriers have been unable to establish new 
service because of the lack of slot availability. Access has 
been especially limited for new entrants and passengers from 
the smaller airports.
    The 1993 Presidential Commission recommended a series of 
actions to strengthen the financial health and competitiveness 
of the U.S. airline industry. Among its recommendations, the 
panel urged the FAA to ``review the rule that limits operations 
at `high density' airports with the aim of either removing 
these artificial limits or raising them to the highest 
practicable level consistent with safety requirements.'' \39\
---------------------------------------------------------------------------
    \39\ ``The National Commission to Ensure a Strong Competitive 
Airline Industry'', Change Challenge and Competition 9 (1993).
---------------------------------------------------------------------------
    A slot exemption provision was enacted in 1994 to allow 
some new air service at O'Hare, La Guardia, and Kennedy. \40\ 
This provision allowed new service in three situations. 
Exemptions could be granted for essential air service to the 
smallest communities, for international air service authorized 
by bilateral air service agreements, and for service by new 
entrant airlines in cases where the Department of 
Transportation (DOT) ``finds it to be in the public interest 
and the circumstances to be exceptional.'' DOT has granted some 
exemptions under this provision.
---------------------------------------------------------------------------
    \40\ Public Law 103-305, 108 Stat. 1584, 49 U.S.C. 41714 (August 
23, 1994).
---------------------------------------------------------------------------
    Since 1994, the demand for slots has grown. Expanding the 
current exemptions or adding new exemptions no longer seems to 
be the best approach. Some communities and carriers inevitably 
get left out. Others try to ``game'' the system to their own 
advantage at the expense of others.
    Moreover, the high-density rule no longer serves its 
intended purpose of reducing delays and congestion. Instead, 
the rule places an artificial limitation on operations at these 
airports which, in effect, harms the traveling public by 
reducing competition. In fact, according to the GAO, a few 
major air carriers have significantly increased their slot 
holdings at these airports while the share held by new entrant, 
low-fare carriers remains low. As a result, airfares at slot-
controlled airports continue to be consistently higher than at 
airports of comparable size without constraints. \41\ There are 
allegations that carriers hoard slots to prevent new airlines 
from entering HDR airports.
---------------------------------------------------------------------------
    \41\ U.S. General Accounting Office, ``Airline Deregulation: 
Changes in Airfares, Service Quality, and Barriers to Entry'' 3 (March 
1999)
---------------------------------------------------------------------------
    By eliminating the HDR immediately at Chicago's O'Hare and 
New York's LaGuardia and Kennedy Airports, the reported bill 
levels the playing field. All airlines, big or small, new or 
old, will now be able to serve these three airports. In 
addition, airlines will be more inclined to serve small 
communities from these airports since they will not have to 
worry about using their precious few slots on the most 
profitable routes. Without the HDR, O'Hare, LaGuardia, and 
Kennedy will be able to operate like every other unconstrained 
airport in the country.
    It is important to note that lifting the HDR, which was not 
implemented for safety reasons, will not affect air safety. In 
fact, on February 11, 1999, FAA Administrator Jane Garvey 
testified before the House Subcommittee on Aviation that 
``there are no safety reasons'' for the high-density rule.
    The FAA has air traffic control procedures in place to 
provide for safety. For example, the FAA's central flow control 
system regulates air traffic based on the capacity of runways 
and airports and it is implemented independently of the HDR 
limits. The FAA would never intentionally allow more planes in 
the air than the system could adequately handle. It is air 
traffic control procedures, not the high density rule, which 
ensures the safety of the aviation system.
    New developments in computer technology and air traffic 
management systems have increased safety while making it 
possible to handle greater volumes of traffic more efficiently. 
The elimination of the HDR is done in conjunction with the 
other provisions in the bill that unlock the aviation trust 
fund and increase investment in aviation infrastructure. This 
will ensure that capacity and efficiency-enhancing improvements 
will continue to be made to our nation's aviation system, 
further reducing delays and congestion and the need for a high 
density rule.
    Therefore, it is clear that this rule no longer serves any 
legitimate aviation purpose. Rather, it merely acts as an 
unnecessary constraint on operations, barring new entry, 
limiting competition and inflating prices at slot-controlled 
airports. It is time to eliminate this arcane rule and the 
reported bill does that.
    Some people living near airports urge the continuation of 
the HDR as a way to reduce noise. However, in recent years, 
Congress has banned the use of the loudest Stage 1 aircraft and 
mandated the phase-out of the noisy Stage 2 aircraft. This 
phase-out will be completed by the end of this year.
    The ban and phase-out have required airlines to re-equip 
their fleet at considerable cost. This cost has most likely 
been passed on to their passengers. At the same time, as noted 
above, passenger demand for air travel has increased 
dramatically. It is unrealistic to expect that air service can 
be perpetually frozen at levels established 30 years ago when 
additional service can be accommodated safely. The reported 
bill would safely accommodate that demand.
    In addition, continuation of the HDR has pushed more 
traffic into the late evening hours when the rule is not in 
effect. This, ironically, leads to more noise for nearby 
residents during the most sensitive hours. Eliminating the rule 
will most likely ease the noise burden during these late-night 
hours.
    In the case of Reagan National, the Committee has decided 
to continue the current limit on flights with only modest 
modifications. This maintains the agreement that was put in 
place when that airport was transferred from the Federal 
government to local control.\42\
---------------------------------------------------------------------------
    \42\ Metropolitan Washington Airports Act of 1986, Public Law 99-
591.
---------------------------------------------------------------------------
    At Reagan National, the reported bill permits DOT to permit 
2 additional slot exemptions per hour, limited to six per day. 
If applications for the slot exemptions exceed the number 
available, DOT would be expected to use expedited procedures in 
order to meet the 120-day deadline for a decision mandated by 
the bill.
    This limited exemption from the slot rules at Reagan 
National should have several beneficial effects. The ability to 
grant exemptions should reduce whatever pressure now exists to 
completely eliminate the slot rule or to take slots away from 
existing airlines in order to accommodate underserved 
communities. Where this authority leads to a modest increase in 
flights, that will have a beneficial impact on competition, 
consumer choice, and the fares that passengers pay. This will 
benefit all passengers, both in the area of the high-density 
airport, the underserved airport, and throughout the country. 
There will be no adverse impact on safety since section 
41714(e)(4), as amended by section 201(b) of the reported bill, 
specifically authorizes the FAA to block the new service if it 
``determines that providing such service would have an adverse 
effect on air safety.''
    Funding.--Other factors cited for the air service problems 
at some communities are slower economic growth, harsher 
weather, and the dominance of large airlines at nearby 
airports.\43\
---------------------------------------------------------------------------
    \43\ Air Service Hearing, supra note 28, at 61.
---------------------------------------------------------------------------
    In 1996, a fund was created to aid the essential air 
service (EAS) program.\44\ That fund currently has $50 million. 
Section 202 of the reported bill would increase that fund to 
$60 million and ensure that $10 million of this amount is 
directed to a new program. This program will help communities 
that are too large to benefit from the EAS program but are not 
large enough to secure adequate air service without some 
assistance. Since there is already a source of money for this 
fund, the new program will not require any increase in taxes.
---------------------------------------------------------------------------
    \44\ Public Law 104-264, 110 Stat. 3249, 49 U.S.C. 41742 (October 
9, 1996).
---------------------------------------------------------------------------
    This new program is designed to help underserved airports 
attract more passengers. This, in turn, could attract more air 
service to the community and help make that service viable over 
the long-term. To help an airline beginning service at a 
community to establish itself there, the fund could also be 
used to subsidize that airline for a period not to exceed 3 
years. The reported bill also authorizes an additional $15 
million to be appropriated to supplement the $10 million that 
is guaranteed. That $15 million could be used for the same 
purpose as the $10 million--to market and promote air service 
at small and medium-sized communities.
    The $50 million remaining will continue to ensure that the 
air service needs of the smallest communities are protected. 
The Committee recognizes that the EAS program plays an 
extremely important role in ensuring that smaller communities 
can continue to have access to the national air transportation 
system. As a result of P.L. 104-264, this program is 
permanently authorized and funded independent of appropriations 
through fees collected pursuant to 49 U.S.C. 45301(a)(1). The 
Committee continues to support this provision and the goals of 
the program.
    Regional air service incentive program.--The growing trend 
in regional jet use has, and will continue, to offer a service 
option in markets with light to moderate traffic where it 
otherwise would be too expensive to provide adequate service. 
Regional jets are perfectly suited for serving small and mid-
size communities.
    According to the Regional Airline Association (RAA), 28.2 
million passengers flew on turboprop regional aircraft in 1986. 
That number has now more than doubled to over 60 million. The 
regional jet comprised only 10.6 percent of all seats flown by 
regional airlines in 1996. When factoring in the regional jets 
currently on order, nearly 40 percent of all regional airline 
passengers will eventually be on these types of planes in the 
near future.
    Regional jets can fly farther, faster, and quieter than 
turboprops and will give airlines the option of flying around 
or over major hub airports. Currently, these regional jets are 
being bought by the major airlines for their commuter 
affiliates. They are not always being used to serve the 
underserved markets. The reported bill provides secured loans, 
loan guarantees, and lines of credit to help smaller airlines 
buy these aircraft. This is important because these smaller 
airlines are most likely to fly to currently underserved 
markets.
    The purpose of this provision is not to help airlines or 
regional jet aircraft manufacturers. They already seem to have 
a backlog of orders. Rather the purpose is to use market 
mechanisms to encourage airlines to use more of these jets in 
underserved markets. Therefore, the reported bill conditions 
the grant of these credit instruments on a commitment to 
provide air service to an underserved market. The regional jets 
could do much to improve air serve at many of the communities 
that have not benefited from deregulation so far.

                         Contract Tower Program

    Since 1982, the FAA has provided air traffic control (ATC) 
services at many low activity Level I visual flight rule (VFR) 
airports by contracting with ATC companies in the private 
sector. This contract tower program has provided significant 
cost savings and enhanced aviation safety. Currently, 162 
airports participate in the contract tower program.
    Participating airports and aviation users have generally 
expressed strong support for the program. Indeed, without this 
program, many of these airports would be without ATC services 
since FAA does not have the financial resources to staff these 
towers with its own personnel.
    The average contract tower costs about $250,000 per year, 
about half of what it would cost FAA to operate the tower 
itself.
    In deciding which airports to contract for ATC services, 
the FAA conducts a cost-benefit analysis. If the analysis at an 
airport results in a ratio of benefits to costs of less than 1, 
FAA will not contract for ATC services at that airport.
    There are some airports whose ratio is slightly less than 1 
or that are in danger of dropping below 1. Under current 
practice, these airports will not have the safety and service 
benefits of the contract tower program.
    To improve safety at these airports, the reported bill 
authorizes $6 million to fund contract tower services at 
airports that fall just below the cost benefit threshold and at 
other similar airports that have a legitimate need for this 
service as specified in section 131 of the reported bill.
    However, the reported bill does require these airports to 
share in the cost of the program. The local share would be in 
proportion to the amount that the airport's ratio falls below 
1. So, for example, if the airport had a benefit to cost ratio 
of 0.85, it would have to absorb 15% of the cost to have its 
tower manned.

                           Family Assistance

    In 1996, after the ValuJet and TWA crashes, the Committee 
approved (H. Rept. 104-793), and, on September 18, 1996, the 
House passed 401 to 4, the Aviation Disaster Family Assistance 
Act (H.R. 3923). With only minor changes, this bill was enacted 
as Title VII of the Federal Aviation Reauthorization Act of 
1996 (P.L. 104-264, 110 Stat. 3264). In 1997, the legislation 
was extended to cover foreign airlines (P.L. 105-148).
    The law, at 49 U.S.C. 1136 and 41113, requires the National 
Transportation Safety Board (NTSB) and individual airlines to 
take actions to address the needs of families of passengers 
involved in aircraft accidents in which there is a major loss 
of life. The law requires airlines to submit plans to DOT and 
NTSB on how they will address the needs of the families in the 
event of an aviation disaster involving one of their aircraft.
    Section 704 of the 1996 legislation called for the creation 
of a Task Force to address some of the more difficult issues. 
These included questions of family privacy, out-of-state mental 
health workers, and ways to improve the notification of 
families.
    On October 29, 1997, the task force issued its report. Many 
of its recommendations do not require legislative changes. 
However, Title IV of the reported bill addresses those that do 
as well as related issues that have arisen as a result of 
experience under this new law. These include lengthening the 
moratorium on lawyer solicitation, permitting out-of-state Red 
Cross mental health workers to assist at an accident scene, 
upgrading airline disaster assistance plans to improve employee 
training, requiring airlines, upon request, to inform the 
family as to whether their loved one had a reservation on the 
flight, and limiting the liability of airlines who provide this 
information.
    The Committee recognizes that flight reservation 
information is not always accurate. In many cases, a person 
with a reservation will not have boarded the flight while a 
person without a reservation may actually be on the flight. 
However, as the Task Force noted, at page 12, ``provision of 
preliminary and limited, but accurate information, i.e., that a 
family member had a reservation on the flight, is better than 
no information in terms of helping the family to cope with the 
news of the disaster.'' In providing this information, the 
airline would be free to explain the limits to the accuracy of 
the initial passenger manifest. In recognition of these limits, 
the bill limits the liability of the airline for providing 
inaccurate information on the basis of the initial reservation 
list.
    Title IV also includes the text of H.R. 603, which passed 
the House on February 3, 1999. This provision makes clear that 
the Death on the High Seas Act does not apply to aviation 
accidents even if the plane crashes into the ocean. See House 
Report 106-32 for a full explanation of this provision.

                                 Safety

    The reported bill addresses several safety issues that the 
Aviation Subcommittee has considered in hearings and other 
forums. Some of them are discussed below.
    Cargo TCAS.--As far back as the 1950s, government and 
airlines began searching for a viable collision avoidance 
system for aircraft. Several systems were developed but until 
1981 none were considered acceptable. In 1981, FAA finally 
announced that it had decided to proceed with the development 
and implementation of the Traffic Alert and Collision Avoidance 
System (TCAS).
    There are basically three versions of TCAS. TCAS I is 
intended for small aircraft. It warns the pilot of an impending 
collision but does not give instructions on how to avoid that 
collision. TCAS II is intended for large commercial aircraft. 
It not only warns the pilot of an impending collision but also 
advises the pilot to go either up or down to avoid that 
collision. TCAS III was originally intended to add to the 
capabilities of TCAS II by advising pilots to go left or right, 
if appropriate, to avoid a collision. In 1993, FAA decided that 
TCAS III contained substantial systematic errors and that it 
could not determine, in many scenarios, which direction to turn 
to prevent a collision. Therefore, work on TCAS III was halted.
    Although FAA had committed to TCAS in 1981, progress in 
actually implementing the system was slow. A 1986 midair 
collision over Cerritos, California,finally prompted 
Congressional action. Section 203 of the 1987 Airport and Airways 
Capacity Expansion and Improvement Act, Public Law 100-223, 101 Stat. 
1518, established deadlines for completing the development and 
installation of TCAS II. As enacted, the legislation required the FAA 
to implement a schedule for the certification of TCAS II that would 
result in that system being certified by June 30, 1989. The legislation 
further directed the FAA to require the installation of TCAS II on all 
passenger aircraft of more than 30 seats within 30 months of the date 
that system was certified. That meant that if the system was certified 
on June 30 as scheduled, airlines would have to equip their fleet by 
December 30, 1991.
    On December 15, 1989, Public Law 101-236 amended the TCAS 
directive to authorize the Administrator of the FAA to extend 
the original compliance deadline for installing TCAS II by two 
years, to December 30, 1993, if the Administrator determined 
that such an extension was necessary.
    On April 9, 1990, FAA published a final rule containing the 
schedule for implementation of TCAS II in aircraft with more 
than 30 passenger seats. In this final rule, the FAA required 
that airlines phase in the implementation of TCAS II with 
compliance by at least 20 percent of all covered airplanes by 
December 30, 1990, 50 percent by December 30, 1991, and 100 
percent by December 30, 1993.
    The required implementation of TCAS II was essentially 
completed by the end of 1993. Since then, TCAS II has 
demonstrated the ability to reduce the potential for collisions 
and is now providing important safety benefits.
    There are approximately 1,000 cargo aircraft operating 
domestically in the same airspace as passenger aircraft. These 
cargo aircraft are not required to have collision avoidance 
systems at this time. During that earlier time, there was very 
little discussion of requiring TCAS on cargo aircraft. On 
September 3, 1996, the Independent Pilots Association (IPA) 
filed a petition for rulemaking with the FAA, requesting that 
it amend its regulation to require TCAS II on cargo aircraft in 
addition to passenger aircraft. Hearings were held on this 
issue 2 years ago.\45\
---------------------------------------------------------------------------
    \45\ ``Proposal to Require Traffic Alert and Collision Avoidance 
Systems on Cargo Aircraft'': Hearing before the Subcommittee on 
Aviation of the House Committee on Transportation and Infrastructure, 
105-5, 105th Congress, 1st Session (February 26, 1997).
---------------------------------------------------------------------------
    The IPA favored a requirement for 50 percent of cargo 
aircraft to be equipped with TCAS II by July 31, 1998, and the 
balance of the cargo fleet to be equipped by December 30, 1998. 
To date, FAA has not issued a final rule requiring TCAS II on 
all-cargo aircraft.
    Cargo airline representatives agree that cargo aircraft 
need the safety benefit of a collision avoidance system. 
However, they believe that TCAS is an outmoded system and favor 
a system known as ADS-B instead. Automatic dependent 
surveillance-broadcast (ADS-B) is being developed for use with 
global positioning satellite systems (GPS) and ``free flight.'' 
When ADS-B becomes available, it is expected to permit aircraft 
to transmit additional data such as heading, next waypoint, and 
vertical speed and to work on the runway where TCAS is not 
currently effective.
    The Committee agrees that cargo aircraft should be equipped 
with collision avoidance systems. However, the Committee 
believes that the FAA and the airlines are better equipped with 
the technical knowledge to choose between TCAS and ADS-B. 
Accordingly, the reported bill sets a deadline for the 
installation of collision avoidance systems on cargo aircraft 
without specifying which system should be installed although 
the system must provide cockpit based collision detection and 
conflict resolution guidance, including display of traffic, and 
protection from mid-air collisions that is at least as good as 
is provided by TCAS-II.
    Pilot record sharing.--Between 1987 and 1994, there were 
reportedly at least 7 fatal accidents involving pilot error 
where the pilot had demonstrated problems at a previous airline 
but the airline involved in the crash was not required to check 
the pilot's records before making the hiring decision.
    The NTSB investigated each of these accidents and, in 4 of 
the cases, recommended that airlines be required to check a 
pilot's previous performance before hiring that pilot. However, 
the FAA took no action to require such record checks.
    One year after American Eagle flight 3379 crashed in North 
Carolina, the Subcommittee held a hearing on this issue.\46\ 
Most witnesses supported legislative action. The NTSB, 
referring to the four accidents in which it had made 
recommendations in this area, testified that ``[c]ommercial 
aircraft accidents are so rare that to have four in seven years 
attributable, even in part, to a single cause should be--for 
everyone--conclusive evidence of a serious problem.'' \47\
---------------------------------------------------------------------------
    \46\ ``Aviation Safety: Should Airlines Be Required to Share Pilot 
Performance Records? Hearings before the Subcommittee on Aviation of 
the House Committee on Transportation and Infrastructure, 104-40, 104th 
Congress, 1st Session (December 13 and 14, 1995).
    \47\ Id, at 78.
---------------------------------------------------------------------------
    In response, the Committee approved (H. Rept. 104-684) and, 
on July 22, 1996 the House passed 401 to 0, the Airline Pilot 
Hiring and Safety Act (H.R. 3536). This was combined with a 
similar Senate bill, the Pilot Records Improvement Act, and 
incorporated into the Federal Aviation Reauthorization Act of 
1996 as Title V (P.L. 104-264, 110 Stat. 3263 et seq., 49 U.S. 
C. 44936(f)).
    This Act required airlines, before hiring a pilot, to 
request the records of that pilot from the FAA, the National 
Driver Register, and the pilot's previous employer. This was 
designed to ensure that airlines would be able to make informed 
hiring decisions.
    More recently, in response to certain implementation 
problems that had developed, the Committee approved (H. Rept. 
105-372) legislation making some improvements in the Act. This 
legislation was ultimately enacted.\48\
---------------------------------------------------------------------------
    \48\ Public Law 105-142, 111 Stat. 2650, December 5, 1997.
---------------------------------------------------------------------------
    The reported bill (section 502) includes some additional 
fine-tuning to the Act that was suggested by FAA. One change 
specifies more precisely the records that must be requested, 
received, and maintained by air carriers. Section 
44936(f)(1)(B) of current law requires the transfer of records 
involving a pilot's proficiency and route checks, airplane and 
route qualifications, training, required physical examinations, 
actions taken concerning release from employment or physical or 
professional disqualification, alcohol and drug test results, 
check airman evaluations, and any disciplinary action that was 
not subsequently overturned.
    All of these requirements are directed toward the 
competency of the individual as a pilot. Indeed, the whole 
thrust of the 1996 Act was to ensure that the airline would 
have the information needed to determine whether the applicant 
was capable of flying the plane safely. While other 
information, such as how the pilot interacts with customers, 
may be important, it was not the focus of that legislation. 
Therefore, the reported bill amends section 44936(f)(1)(B)(ii) 
to clarify that while airlines are free to request and receive 
other information not directly related to the competency of the 
individual as a pilot, they would not be required to do so by 
the Pilot Records Improvement Act.
    In addition, the reported bill makes clear that the 
military is not required to release pilot records and airlines 
cannot be penalized for failure to get records from a foreign 
entity if they made a good faith effort to do so.

             Whistleblower Protection for Airline Employees

    Private sector employees who make disclosures concerning 
health and safety matters pertaining to the workplace are 
protected against retaliatory action by various Federal laws. 
These employees have become known as ``whistleblowers.''
    There are currently over a dozen Federal laws protecting 
whistleblowers including laws protecting nuclear plant workers, 
miners, truckers, and farm laborers when acting as 
whistleblowers. For example, section 2305 of the Surface 
Transportation Assistance Act of 1978, 49 U.S.C. 2305, 
prohibits retaliation for filing a complaint or instituting any 
proceeding relating to violations of motor vehicle safety rules 
or refusing to operate an unsafe vehicle. There are no laws 
specifically designed to protect airline employee 
whistleblowers.
    The Committee previously considered legislation to protect 
airline employee whistleblowers in 1988. Hearings were held on 
April 27, 1988 and H.R. 5073 passed the House on September 13, 
1988. The Senate never acted so the bill died. More recently, 
hearings were held on this issue on July 10, 1996 (Committee 
document 104-57).
    Title VI of the reported bill would provide protection for 
airline employee whistleblowers by prohibiting the discharge or 
other discrimination against an employee who provides 
information to its employer or the Federal government about air 
safety or files or participates in a proceeding relating to air 
safety. To ensure that this protection is not abused, the 
provision provides penalties for the filing of frivolous 
complaints.

                  Emergency Revocation of Certificates

    To fly a plane, repair a plane, or operate an airline, 
airport or other aviation business, a person must obtain a 
certificate from the Federal Aviation Administration (FAA).
    If a pilot, mechanic, airline, or other holder of a FAA 
certificate breaks the laws or regulations, the FAA has several 
means of enforcement. One is an administrative action that 
could take the form of a warning letter to the violator. 
Another approach would be to assess a fine or civil penalty 
against the violator. The most serious sanction that could be 
imposed would be to revoke that person's certificate. The FAA 
will usually choose initiate a revocation action in the 
following circumstances:
          When the FAA believes that the person is not 
        qualified to hold the certificate;
          When the FAA believes that the person demonstrated a 
        lack of care, judgment, or responsibility that would be 
        expected of a certificate holder;
          When the person has shown a poor compliance 
        disposition such as when the person has repeatedly or 
        deliberately violated the rules or has falsified 
        records; In addition, if a pilot is convicted of drug 
        smuggling, 49 U.S.C. section 44710 mandates that that 
        pilot's certificate be revoked.
    A certificate revocation could happen in one of two ways. 
The FAA could propose the revocation, give the person an 
opportunity to defend, and then, if warranted, revoke the 
certificate. This would allow the person to continue to operate 
while the certificate action was pending.
    However, since 1990, the FAA has taken the view that a 
decision to revoke a certificate often justifies invoking the 
agency's emergency authority under 49 U.S.C. 44709(c) and 
46105(c). This policy is embodied in FAA Order 2150.3A. Under 
this emergency revocation procedure, the person has the right 
to appeal to the NTSB and the Federal Courts of Appeals. 
However, in such a case, the person loses the right to operate 
while the revocation proceeding is pending.
    The FAA defends the emergency revocation procedure on the 
grounds that public safety is jeopardized if an unqualified 
person is allowed to continue operating while the revocation 
proceeding is pending. Many in the aviation community, 
particularly pilots and lawyers who represent pilots, have 
criticized the emergency revocation procedure on the grounds 
that it presumes the person to be guilty, denies the person due 
process, and can destroy that person's livelihood. They argue 
that FAA uses the emergency revocation procedure to pressure 
persons into voluntarily surrendering their certificates and to 
circumvent the NTSB requirement that FAA process a case within 
6 months.
    As a result of the concerns about the emergency revocation 
procedure, Senator Inhofe asked the GAO to study the FAA's use 
of this procedure.\49\
---------------------------------------------------------------------------
    \49\ U.S. General Accounting Office, ``Aviation Safety: FAA's Use 
of Emergency Orders to Revoke or suspend Operating Certificates'' GAO/
RCED-98-199 (July 1998).
---------------------------------------------------------------------------
    The GAO found that since 1990 only about 15% of the 137,506 
enforcement cases that FAA brought involved the revocation or 
suspension of a certificate. Of these, only 3,742 involved the 
emergency revocation of certificates. This represents about 3% 
of total enforcement actions and 18% of the certificate 
revocations. However, the percentage of emergency actions 
increased from 10% of total certificate actions in 1990 to an 
average of 20% over the next 7 years. This was partly due to 
the fact that, for less serious cases, FAA chose to assess 
fines rather than revoke certificates and partly due to FAA's 
decisions to make greater use of the emergency revocation 
procedure.
    Most of the emergency revocations (about 60%) were taken 
against pilot certificates. Mechanics were affected 12% of the 
time.
    According to GAO, emergency revocations as a percentage of 
total revocations varied in different FAA regions. The average 
across all regions was 18%. However, in the Eastern, Western-
Pacific, and Southwest region, 28% to 38% of the certificate 
actions used emergency procedures.
    The use of emergency revocation procedures does not mean 
that the revocation was necessarily instituted immediately 
after the violation occurred. GAO found that in about half the 
cases, FAA issued the emergency revocation order more than 4 
months after learning of the violation. Sometimes, the delay 
was more than 2 years. FAA justifies these delays on the 
grounds that time is needed to investigate the facts and 
determine whether a certificate revocation is warranted. 
Critics contend, however, that it should no longer be 
considered an emergency if the violation happened months or 
years ago and the person has been operating safely since then.
    Currently, a person subject to an emergency revocation 
order has two aspects of that order that can be appealed. The 
person can either challenge the emergency nature of the order 
or challenge the order on the merits.
    If the person challenges the emergency nature of the 
revocation order, the appeal is taken to a Federal court. 
According to GAO, few choose to do this and even fewer prevail. 
There is no deadline for the Federal court to act although FAA 
claims that the court will usually rule within 5 to 7 days.
    If the person challenges the merits of the revocation 
order, the appeal is to the NTSB. The case is assigned to an 
Administrative Law Judge and then is reviewed by the full 
Board. The NTSB has 60 days to decide whether to uphold the 
FAA's revocation order.
    GAO points out that 86% of the time, the FAA decision to 
revoke the certificate is upheld on appeal. In 52 cases during 
the 1990s, the FAA's action was reversed on appeal. In some 
instances, the case resolved itself in another way such as 
being converted to a civil penalty or allowing the certificate 
to lapse.
    The Aviation Subcommittee held a hearing on this issue last 
year.\50\ At that time, the Subcommittee heard from pilots and 
aviation businesses about alleged abuses by FAA officials of 
the agency's emergency revocation authority.
---------------------------------------------------------------------------
    \50\ ``H.R. 1846: FAA's Emergency Revocation of FAA Licenses'': 
Hearings before the Subcommittee on Aviation of the House Committee on 
Transportation and Infrastructure, 105-80, 105th Congress, 2nd Session, 
(August 6, 1998).
---------------------------------------------------------------------------
    The Committee strongly believes that FAA must have 
emergency revocation authority in order to ensure public 
safety. But the Committee also believes that a citizen's due 
process rights must be protected.
    Accordingly, the reported bill provides a new procedure for 
appeals of emergency revocations. Rather than appealing to a 
Federal court, a certificate-holder could appeal to the NTSB. 
This would provide an expedited procedure to ensure that an 
emergency really exists that justified the immediate revocation 
of the certificate while the appeal on the merits of the 
revocation was pending. The appeal to the NTSB also has the 
advantage of putting the decision in the hands of those who are 
more likely to have expertise in aviation matters than a 
Federal court judge who is responsible for a broader array of 
issues.

                            Public Aircraft

    What are public aircrafts?--In the past, public aircraft 
were defined as aircraft that were (1) used exclusively by 
Federal, State, or local government agencies and (2) not used 
``for commercial purposes.'' However, as explained further 
below, that definition has been complicated by recent 
legislation.
    There are about 5,000 aircraft used by government agencies 
in the U.S.
    Significance of being classified as a public aircraft.--
Unlike general aviation, civil, or commercial aircraft, public 
aircraft are not subject to FAA safety regulations, thus making 
such aircraft much less expensive to operate.
    Legislative background.--Public aircraft have been exempted 
from safety regulations since Federal regulation of aviation 
began in 1926. The wisdom of this exemption has been questioned 
in recent years.
    In 1986, at the request of this Committee, the GAO 
undertook a study of publicaircraft.\51\ That study suggested 
that Congress should consider applying FAA safety regulations to public 
aircraft.
---------------------------------------------------------------------------
    \51\ U.S. General Accounting Office, ``Aviation Safety: Federal 
Regulation of Public Aircraft'' GAO/RCED-87-19BR (December 1986).
---------------------------------------------------------------------------
    In 1990, the definition of public aircraft was amended to 
exclude aircraft leased by a State or local government if the 
lease was for less than 90 days (Section 207 of P.L. 100-223, 
101 Stat. 1523). This prevented civil aircraft from escaping 
FAA regulations by seeking cover as a public aircraft on a 
short-term basis. The amendment also gave the NTSB greater 
authority over public aircraft accidents.
    The issue came to the forefront again in 1993 when a public 
aircraft operated by the State of South Dakota crashed killing 
its Governor. In response, South Dakota Senator Pressler 
introduced S. 1092. This bill would have required public 
aircraft to comply with FAA safety rules. The bill was modified 
in response to objections and folded into legislation 
reauthorizing the NTSB. That legislation was enacted into 
Public Law 103-411 on October 25, 1994. The provision on public 
aircraft can be found in section 3 of the Independent Safety 
Board Act Amendments of 1994 (P.L. 103-411) and section 
40102(a)(37) of title 49 of the United States Code. It is 
commonly known as the Pressler amendment.
    Pressler amendment. The Pressler amendment changed the 
definition of public aircraft.
    With respect to the transportation of cargo, the law 
continued to state that a government aircraft that transports 
property is a public aircraft unless it transports that 
property ``for commercial purposes.'' If it transports property 
for commercial purposes, it would be a civil aircraft.
    With respect to the carriage of people, the classification 
is much more complicated. As a general rule, the Pressler 
amendment limited the class of public aircraft by excluding 
aircraft that carry passengers. An aircraft carrying passengers 
is no longer considered a public aircraft even if it is owned 
by a government agency.
    However, there are two exceptions. If the passengers were 
on board the aircraft to carry out a government function such 
as fire-fighting, law enforcement, or search and rescue, then 
the aircraft would still be a public aircraft. Also, aircraft 
operated by the military or an intelligence agency are still 
considered public aircraft. However, these exceptions would not 
apply if the people on board were being transported ``for 
commercial purposes.'' When that occurs, those aircraft would 
lose their status as public aircraft.
    As can be seen, the question of whether an aircraft is a 
public aircraft will often depend on whether it is being 
operated ``for commercial purposes.'' In other words, if the 
government agency receives payment for carrying people in the 
aircraft, the aircraft would not be a public aircraft.
    Foley modification. At the same time that Senator Pressler 
was seeking to limit the class of public aircraft, House 
Speaker Tom Foley was trying to expand it. He was responding to 
constituents who found the ``commercial purposes'' component 
too limiting.
    The problem arose because, in many cases, one government 
agency will allow another government agency to use its aircraft 
under a cost reimbursement agreement. The fact that the 
government agency is being paid for the use of its aircraft 
caused the FAA to construe the flight as an operation for 
commercial purposes which removed it from the public aircraft 
classification. To prevent this and continue to permit one 
government to lease its aircraft to another, Speaker Foley 
prevailed in including another exception in the law. This 
permits an aircraft to continue to be classified as a public 
aircraft even if the owner is reimbursed by another government 
agency as long as the government agency renting the aircraft 
certifies to the FAA that the aircraft is needed to respond to 
a ``significant and imminent threat to life or property'' and 
that ``no service by a private sector operator was reasonably 
available to meet the threat.''
    Clinger limitation. When the Pressler amendment was being 
considered, Mr. Clinger, who was then ranking Republican on the 
Aviation Subcommittee, recognized that the sudden imposition of 
FAA regulations on government aircraft could impose a 
significant cost burden on State and local government agencies. 
He viewed this as another unfunded Federal mandate.
    As a result, at his insistence, a provision was added 
permitting FAA to grant an exemption to a State or local 
government if that entity could show that the imposition of FAA 
rules on it would impose ``an undue economic burden'' and that 
the State or local aviation safety program ``is effective and 
appropriate to ensure safe operations of the type of aircraft'' 
it operates.
    FAA actions. The above-described legislation became 
effective on April 23, 1995. Prior to that, the FAA issued 
Advisory Circular 00-1.1 providing guidance on whether 
particular government-owned aircraft operations would be 
classified as public aircraft operations. For those that lost 
public aircraft status, the Advisory Circular provided 
information on bringing those aircraft into compliance with FAA 
safety regulations.
    The FAA pointed out that the classification of an aircraft 
depends on how it is used. For example, an aircraft that is 
used for search and rescue is a public aircraft. If the same 
aircraft is used to transport the governor to a meeting, it is 
a civil aircraft. Thus, it may be more appropriate to speak of 
particular aircraft operations as public or civil in nature 
rather than classifying the aircraft itself as public or civil. 
The same aircraft could be a public aircraft one day and a 
civil aircraft the next day depending on how it is used.
    The FAA's Advisory Circular also further clarified some key 
terms in the law. For example, with respect to ``for commercial 
purposes,'' the FAA stated that it was notnecessary for the 
owner to make a profit. If the aircraft's owner received direct or 
indirect payment, that was enough to cause it to lose public aircraft 
status.
    The Advisory Circular also listed the governmental 
functions being performed by persons aboard the aircraft that 
would justify classifying that operation as a public aircraft 
operation. In addition to fire-fighting, search and rescue, law 
enforcement, aeronautical research, and biological and 
geological resource management which were listed in the law, 
the FAA cited medical evacuation and aerial survey flights as 
public aircraft operations. In the Committee's view, aerial 
photography for non-law enforcement purposes would not be 
considered a governmental function.
    The Advisory Circular also set forth the requirements for 
those aircraft that were no longer public aircraft. These 
requirements include using licensed pilots with current medical 
certificates, having the aircraft, its engines, and propellers 
certified as airworthy, and having the aircraft properly 
inspected and maintained by authorized persons.
    The FAA noted that many formerly public aircraft were types 
that had never been certificated. The agency acknowledged that 
these, frequently former military aircraft, would be difficult 
to certificate now. Nevertheless, it set forth the procedures, 
registration requirements, noise standards, inspection records 
and technical documentation requirements, and flight testing 
requirements that would have to be met to obtain certification. 
However, it is questionable whether military aircraft could 
ever meet these requirements.
    Finally, the Advisory Circular set forth the procedures for 
obtaining an exemption from the above requirements. However, 
the FAA has indicated that such exemptions would rarely be 
granted. It stated that ``the agency expects to invoke its 
exemption authority only when the public interest clearly 
demands it.'' \52\
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    \52\ 59 Fed. Reg. 63154, 63155 (December 7, 1994) and 60 Fed. Reg. 
5074 (January 25, 1995).
---------------------------------------------------------------------------
    Hearings.--The Committee's Aviation Subcommittee held 
hearings on this issue in 1995.\53\ At that time the 
Subcommittee heard conflicting perspectives from the law 
enforcement community and the small business community on the 
impact of changes in the public aircraft definition.
---------------------------------------------------------------------------
    \53\ ``Public Aircraft and Special Purpose Aircraft'': Hearings 
Before the Subcommittee on Aviation of the House Committee on 
Transportation and Infrastructure, 104-37, 104th Congress, 1st Session, 
(October 19 and December 7, 1995).
---------------------------------------------------------------------------
    Law enforcement's reaction.--At the hearings, state and 
local law enforcement agencies expressed concerns with the 
current definition of public aircraft. Most concerns seemed to 
be focused on two areas. The first involved flights using 
former military aircraft. These aircraft have been used in the 
past to transport the governor, the police chief, or other 
government officials. Now, however, since these former military 
aircraft do not hold a civil airworthiness certificate from the 
FAA, they cannot be used to carry these passengers.
    The second problem involves the issue of cost 
reimbursement. If the government agency is reimbursed for the 
use of its aircraft, that is considered compensation by the 
FAA. That means the operation is ``for commercial purposes'' 
and not a public aircraft operation.
    As a result, if a law enforcement agency uses its 
helicopters to assist another law enforcement agency, and is 
then reimbursed for actual expenses, those helicopters lose 
their public aircraft status unless the required certifications 
of an imminent threat can be made. Witnesses explained how this 
has crimped the programs of several law enforcement agencies 
and fire departments.
    In many cases, the public agency could hire a private 
sector operator to perform the flights but that would be more 
expensive. Public aircraft operators also questioned whether 
there is any real safety problem with their operations. They 
argued that the law was changed to address a problem that does 
not exist.
    Private sector reaction.--The private sector, primarily 
commercial helicopter operators, charter operators, and small 
aviation businesses also testified. They supported the change 
in the public aircraft law in order to prevent some government 
agencies from competing against them unfairly. They fear that 
some public operators are trying to function as for-hire 
entities and compete with private sector operators without 
having to comply with FAA safety rules. This gives the public 
operators a cost advantage against which the private sector 
cannot compete. Private sector operators were quick to support 
the law enforcement functions of public aircraft operators but 
objected to government attempts to earn money from ``side 
jobs'' that would impact small commercial businesses.
    Revised definition.--The reported bill does not attempt to 
resolve the dispute between the public and private aircraft 
operators. Rather, it merely attempts to create a statutory 
context in which this dispute can be considered and hopefully 
addressed.
    Despite attempts to explain it above, the current 
definition is needlessly complex. This hinders the ability of 
the Congress and the affected parties to consider changes.
    Therefore, section 702 of the reported bill revises the 
definition. The purpose and intent of Congress in adding 
Section 702 to H.R. 1000 is solely to replace old convoluted 
language (laden with multiple negatives) with positive language 
that states existing law in terms that are readily understood 
by both the nation's aviation community and the general public. 
Nothing in section 702 should be interpreted as a change in 
current public policy relating to public aircraft. Before 
making any changes the Committee will be mindful of the 
delicate balance between highly technical Federal Aviation 
Regulations (FARs), public aircraft operators' need for 
exemptions from these rules, and the need for small businesses 
operating commercial aircraft to be protected from government-
subsidized competition in the marketplace.

                       National Park Overflights

    Background. Commercial air tour operations have become 
exceedingly popular at a number of units of the National Park 
system and are growing in popularity in others. Many park areas 
have documented or estimated significant increases in the 
volume of commercial air tours over the last ten years. With 
these increases, there has been an increase in complaints by 
park users that the serenity and quiet of national parks is 
being destroyed.
    In response to this issue, in 1987, Congress enacted Public 
Law 100-91, commonly known as the National Parks Overflights 
Act (the Overflights Act). This act directed the Secretary of 
the Interior to conduct a study to determine the proper minimum 
altitude that should be maintained by aircraft when flying over 
units of the National Park system. The study was to also 
identify problems associated with overflights and provide 
information regarding the types of overflights that might be 
impacting park units. Finally, the Overflights Act required the 
FAA Administrator to assist the National Park Service (NPS) in 
carrying out this study.
    As a result of this law, in 1994, the NPS submitted its 
Report to Congress stating that 70 percent of the managers 
whose parks were affected by overflights identified aircraft 
noise as a potential sound problem.
    In December of 1993, Secretary of Interior Babbitt and 
then-Secretary of Transportation Pena established an 
interagency working group (IWG) to further study ways to 
address the impacts of overflights on national parks. Both the 
Department of Transportation and the Department of the Interior 
agreed that increased air tours at national parks had 
diminished the national park experience for some park visitors, 
and that measures should be taken to preserve the park 
experience for ground visitors, while, at the same time, 
providing a comparable experience for air visitors to the 
national park. The FAA's role in this group has been to 
promote, develop and foster aviation safety and to provide for 
safe and efficient use of airspace. In addition, FAA has 
recognized the need to preserve, protect and enhance the 
environment by minimizing the adverse effects of aviation. The 
NPS's role has been to protect public land resources in 
national parks, preserve environmental values of those areas 
and provide for public enjoyment of those areas.
    The President issued an Executive Order on April 22, 1996, 
directing the Secretary of Transportation, in consultation with 
the leadership of relevant Departments and Agencies, to 
establish a framework for managing air traffic over park units 
and to undertake additional transportation planning to address 
the impact of transportation on National Parks.
    In addition, a Joint Oversight Field Hearing was held by 
the Subcommittee on National Parks and Public Lands and the 
Subcommittee on Aviation in St. George Utah on November 17, 
1997. The hearing addressed issues surrounding air tours 
conducted over national parks. Topics discussed included 
whether restoring natural quiet to national parks was a 
reasonable goal, how many complaints per million visitors were 
acceptable and various ways to reduce noise over the parks.
    In response to the President's mandate, in 1997, the FAA 
and the NPS established a National Parks Overflights Working 
Group to develop a plan for instituting flight restrictions 
over National Parks.
    The working group was comprised of individuals with 
experience in aviation and in national park management. The 
Working Group held several public meetings and recommended a 
consensus proposal on overflights last year. The proposal 
included the recommendation that the group endorse legislation 
that captures the intent of its agreement. Accordingly, this 
legislation encompasses the Working Group's agreement and has 
been endorsed by it.
    This group, including air tour industry representatives, 
environmentalists, and Native American representatives has 
agreed that this legislative package would establish a 
framework for the management of sightseeing aircraft over the 
National Park System. This legislation attempts to strike a 
balance between the rights of ground visitors to enjoy a 
national park with minimal intrusion, and in some cases, no 
intrusion from air tour noise, with the rights of air tour 
visitors to a park to enjoy a spectacular air visit.
    Because all units of the National Park System are not 
equally affected by air tours, this legislation merely sets out 
a standard framework of principles to apply to all units of the 
NPS. Specific operational requirements for each individual unit 
would be negotiated on an individual basis with the FAA, NPS, 
air tour operators, affected Native Americans and the general 
public. The operational requirements would be based on the type 
of park, the demand for air tours, and any quiet technology 
available. Each park could conceivably have a different air 
tour management plan based on the demand for air tours and 
characteristics of the individual park.
    Bill framework.--The bill reaffirms that the FAA has the 
sole authority to control airspace over the United States. The 
Committee believes that although this legislation requires the 
NPS and the FAA to work together, it is important to note that 
this legislation does not in any way diminish the FAA's 
authority over U.S. airspace. The bill also reaffirms that the 
FAA has the authority to preserve, protect and enhance the 
environment by addressing the adverse effects of aircraft 
noise. In this case, that authority will include overflights of 
park and tribal lands. To regulate this particular issue, the 
FAA is directed to work in cooperation with the National Park 
Service, which is responsible for conserving the natural beauty 
and historical significance of national parks. The Committee 
realizes that this may be a difficult venture as both agencies 
have different priorities in this matter. However, the two 
agencies must work together to balance the need to protect the 
significant and sensitive areas of a national park while 
recognizing the importance of viable air tours over certain 
parks to all park visitors, especially those that may be infirm 
or handicapped. Through this cooperative process, the agencies 
will develop a viable air tour management plan that will 
balance these interests, while keeping the FAA's mandate of 
safe airspace.
    It is important to recognize that this legislation 
represents a compromise between the interests of the air tour 
operators and those advocating quiet in the parks. This bill 
directs both agencies to work together to maintain to the 
extent possible both natural sound levels and the opportunity 
to view park areas using commercial sightseeing tours.
    The bill requires that an air tour operator may not conduct 
commercial air tour operations over a national park without an 
approved air tour management plan, jointly agreed upon by FAA 
and NPS. There is an exception from this rule for existing 
operators that is discussed further below. This exception is to 
protect operations of current air tours during the time that an 
air tour management plan is being negotiated.
    For purposes of this act, commercial air tour operations 
are defined as flights for compensation or hire in a powered 
aircraft where the purpose of the flight is sightseeing over a 
national park or within \1/2\ mile outside the boundary of a 
national park. The operator conducting the tour must be flying 
below a minimum altitude, to be determined by the Administrator 
of the FAA in cooperation with the Director of the National 
Park Service, or less than 1 mile laterally from any geographic 
feature within the park, to be considered a ``commercial air 
tour.'' The half mile boundary was implemented so that air tour 
operators could not circumvent the intent of this legislation 
by flying their air tours just outside the park boundary, thus 
exempt from regulation, while still causing noise disturbance. 
One half mile was considered a reasonable distance from the 
park that would prevent a viable air tour from being flown and 
any noise disturbances to a minimum.
    The bill is also designed to require air tour management 
plans for air tours over tribal lands that are within or 
abutting a national park. Air tours over parks often fly over 
sacred tribal lands and Native Americans are sensitive to these 
disturbances over their cultural grounds. This legislation is 
not intended to apply the requirements of an air tour 
management plan to tribal lands that are not within or abutting 
a national park.
    Air tour certification.--This bill would require existing 
air tour operators at any unit of the national park system to 
apply for authority under part 119 to operate under 121 or 135 
as appropriate, to conduct air tours. These air tour operators 
must apply for certification within 90 days from the enactment 
of this bill. A narrow exception is outlined in the bill to 
allow some operators to continue to conduct air tours under 
Part 91 for up to five flights per month for any national park. 
These flights could be split between operators as long as the 
total number of flights operating at a single park does not 
exceed five. In order to meet the requirements for this 
exception, the operator must secure a letter of agreement from 
the Administrator and the superintendent of the national park, 
and must fit within the current regulatory exemption under part 
119. The letter must specify the conditions under which the air 
tour operations will be conducted.
    Air tour management plan.--As discussed above, there may be 
some parks where, during the ATMP process, it is determined 
that there will be a limit on the frequency of air tour 
operations over a park. In these cases, the Administrator, in 
cooperation with the Director of the National Park Service, 
will develop an open competitive process for evaluating 
proposals from operators interested in providing air tours over 
the park. The Administrator and the Director shall consider 
appropriate factors, some of which are listed in the bill. 
These include the safety record of the person submitting the 
proposal or his or her pilots; quiet aircraft technology 
proposed to be used; experience of the person submitting the 
proposal with air tours over other parks; financial capability 
of the company; training programs provided for pilots; and the 
responsiveness of the person submitting the proposal to any 
relevant criteria identified by the NPS for the affected park.
    To determine the number of operations allowed over a park, 
the Administrator and the Director shall take into 
consideration the provisions of an existing air tour management 
plan, the number of existing commercial air tour operators and 
current level of service and equipment provided by the 
operators, and the financial viability of each air tour 
operation.
    The requirement for an air tour management plan (ATMP) for 
a national park is triggered when a person applies for 
authority to conduct a commercial air tour operation over that 
park. The objective of the ATMP will be to develop acceptable 
and effective measures to mitigate or prevent significant 
adverse impacts of commercial air tours upon the natural and 
cultural resources, visitor experiences and tribal lands of a 
national park so that air tours can continue to fly over the 
park. In some cases, acceptable and effective measures would be 
those that allow aerial viewing of the park with some noise 
disturbances, in other cases, where noise is a more critical 
aspect of the park experience, aerial viewing might have to be 
more restricted or even banned.
    The ATMP itself may limit or prohibit commercial air tour 
operations in a variety of ways. This would include 
establishing conditions for the conduct of air tour operations 
including routes, maximum or minimum altitudes, time of day or 
event restrictions, maximum number of flights in a specific 
unit of time, intrusions on privacy of tribal lands and 
mitigation of adverse noise. The ATMP may include incentives 
for the adoption of quiet technology by air tour operators 
conducting air tours over the park to improve noise quality at 
the park. These incentives may include preferred routes and 
altitudes and relief from flight caps and curfews.
    If the ATMP provides for a limit on air tour operations for 
any time period, it must provide a system for allocating the 
opportunities on an equitable basis. The rationale for the 
measures taken in the ATMP must be documented and set forth in 
the record of decision.
    The contents of the ATMP are to be determined in the 
context of a public process. FAA and NPS are required to hold 
at least one public meeting with interested parties and publish 
the proposed ATMP for notice and comment in the Federal 
Register. The ATMP process must also comply with regulations 
promulgated under the National Environmental Policy Act that 
determine the parameters of an environmental review. In 
undertaking this process, the FAA is to be the lead agency and 
the NPS is a cooperating agency. The FAA would have the 
responsibility for ensuring the safe and efficient use ofthe 
nation's airspace and protecting the public health and welfare from 
aircraft noise. The NPS would have the responsibility for determining 
the extent of impacts on natural and cultural resources and visitor 
experiences. This bill adds an additional requirement to existing 
environmental requirements in that it requires both agencies, FAA and 
NPS, to sign the environmental review document. This is not a current 
requirement under NEPA and is intended to ensure that NPS and FAA agree 
on the ATMP. In addition, if there are any Native American tribal lands 
that may be overflown as part of an air tour operation over a park, 
that Tribe's participation shall be solicited. Once an ATMP is 
completed, amendments would only be made by the Administrator of the 
FAA, in cooperation with the Director of the NPS. By including an 
amendment process, the bill allows an ATMP to be adjusted based on 
experiences or new technologies.
    The bill sets out several factors to be used by the FAA in 
determining whether a flight is a commercial air tour operation 
and thus, regulated by an ATMP. To determine if a flight is an 
air tour operation, the Administrator may consider whether 
there was a holding out to the public of a willingness to 
conduct a sightseeing flight for compensation or hire. The 
Administrator may also look at whether the person offering the 
flight referred to areas or points of interest on the surface 
below the route of the flight either in written or oral 
narrative form as well as the area the person offering the 
flight operates in. For example, if the flight is offered only 
around areas where there are no points of interest, this could 
be a factor against a determination that an air tour is being 
offered. The Administrator may also look at the frequency of 
the flight offered and the route of the flight. If the flight 
is cancelled because there is poor visibility on the surface 
below the route of the flight, this could be a factor in a 
finding that a commercial air tour is being offered. The 
Administrator may also look at whether the inclusion of sight 
seeing flights is offered as part of a travel package by the 
person offering the flight. In addition, the legislation gives 
the Administrator the power to consider other factors that he 
or she may find appropriate.
    The bill requires the FAA to grant interim operating 
authority (IOA) to an air tour operator who applies for 
operating authority at a park where he or she is an existing 
air tour operator. IOA allows the operator to fly its existing 
air tour routes over the park while an ATMP is being developed. 
The Committee realizes that, in some cases, the ATMP process 
may be drawn out, especially over parks where air tours are 
highly controversial. Historical flights for purposes of an IOA 
will be determined by the greater of the number of flights 
provided by the operator in the 12 months preceding enactment 
of this law or the average number of flights in a 12 month 
period over the preceding three years and for seasonal 
operations, the number of flights used during the season or 
seasons during that 12 month period. This provision allows the 
operator to account for a drop in operations in the preceding 
12 months if he or she operated more flights per year on 
average for the preceding 3 years. The operator is not allowed 
to increase the number of flights determined to be allotted to 
him or her under the IOA without approval by the Administrator 
and the Director. However, in some cases, the operator may be 
able to receive more flights. This might occur if he introduces 
quiet technology in his flights or if another operator at the 
same park cuts down on its operations and leaves a demand for 
air tours.
    The IOA must be published in the Federal Register with an 
opportunity for notice and comment. It may be revoked by the 
Administrator for cause and shall terminate 180 days after the 
establishment of an ATMP for that park. The IOA must promote 
the protection of national park resources; visitor experiences 
and tribal lands; safe operations of commercial air tours; the 
adoption of quiet technology; and shall allow for modifications 
based on experience if the modifications improve the protection 
of park resources and values and tribal lands.
    Exemptions.--This legislation is not intended to apply to 
Grand Canyon National Park or any national park or land in 
Alaska as there is already legislation addressing park 
resources and values for both Alaska and the Grand Canyon 
(Public Law 100-91). If the legislation addressing the Grand 
Canyon should for some reason become ineffective, then this 
legislation will apply to the Grand Canyon National Park.
    Advisory group.--The bill also sets up an advisory group to 
continue to provide insight and advice regarding commercial air 
tour operations over and near national parks. This group will 
deal with any issues that may arise with respect to 
implementation of this legislation, the development of quiet 
aircraft technology that could be used in commercial air tour 
operations and other measures that might be taken to 
accommodate the interests of visitors to national parks and 
provide recommendations to the Administrator and Director on 
these issues. The Administrator and the Director may also 
request that the group provide recommendations on safety, 
environmental and other issues related to commercial air tour 
operations. The group will be composed of representatives from 
the interest groups that have been involved in the regulatory 
and legislative process.

                          Miscellaneous Issues

    Title VII of the reported bill includes several other 
issues that have been brought to the Committee's attention. 
Some of them are discussed below.
    Disposal of airport property.--As a general matter, the 
Committee is concerned about the threat to general aviation 
airports. Accordingly, the reported bill includes a provision 
to ensure that there is more careful consideration before an 
airport is closed or some of its property sold. The provision 
(section 136) requires an airport to notify the public before 
disposing of airport land. FAA must consider the current and 
future needs of airport users before permitting such a property 
sale. This should help preserve general aviation airports.
    In this connection, the Committee has heard that there are 
numerous instances of revenue diversions and lack of timely 
payback of funds when grant releases are approved. If accurate, 
this warrants changes to the FAA's grant assurance enforcement 
program.
    Improvements to leased properties.--A line of Comptroller 
General decisions generally prohibit an agency from making 
improvements to leased property unless there is specific 
authority to do so (See 65 Comp. Gen. 722 (1986)). However, the 
Comptroller General has allowed such improvements if (1) the 
cost of the improvements are in reasonable proportion to the 
overall cost of the lease, (2) the improvements will be used 
for the principal benefit of the government, (3) the proposed 
improvements are incidental to and essential for the 
accomplishment of the agency's mission, and (4) the interest of 
the government in the improvements is protected.
    This is problematic for the FAA because it will often lease 
property for its air traffic facilities for free or for low or 
nominal rent. As a result, it may be unable to satisfy the 
first condition that the cost of the improvements is in 
reasonable proportion to the overall cost of the lease.
    Section 709 of the reported bill addresses this problem by 
allowing the FAA, in cases where the property is leased for 
free or nominal rent, to make improvements to that property 
even if the cost of the improvements are more than the cost of 
the lease as long as the other three prongs of the Comptroller 
General's test are satisfied. By nominal rent, the Committee 
does not necessarily mean rent of $1 or less but rather rent 
that is significantly below fair market value. This section 
should not be construed as changing the basic prohibition 
against making improvements to leased property without specific 
authority to do so.
    Public availability of pilot records.--Section 711 of the 
reported bill allows the FAA to renew its long-standing 
practice of making lists of airmen certificates available to 
the public. These lists allow for the dissemination of 
important aviation information to pilots and to the flying 
public. Pilots have had the opportunity to remove their names 
from such lists but FAA did little to make pilots aware of that 
option. This provision requires that, before an airman's 
address is released, the airmen be given an opportunity to 
prohibit the FAA from releasing it. The provision directs the 
FAA to recommence making the list available to the public 
subject to the required notification. The provision further 
directs the FAA to work with the aviation industry to develop a 
more effective program to publicize the ``opt-out'' opportunity 
in conformity with most direct mail practices. Such efforts 
must include, within 60 days of enactment, a one-time written 
notification to airmen of the advantages and disadvantages of 
having their address released and the opportunity to elect that 
their address not be released.
    Alaska guide pilots.--In Alaska, there are people who earn 
a living by guiding tourists on hunting or fishing trips. Since 
air travel is often the only way to get to one's destination in 
Alaska, the guide will usually fly customers to the hunting or 
fishing spot.
    For many years the FAA regulated these guide pilots under 
14 CFR Part 91. However, on January 2, 1998, the FAA published 
a notice in the Federal Register that, in the future, these 
pilots would be regulated under the more stringent requirements 
of 14 CFR Part 135. This could have a serious adverse impact on 
these guides and could put many out of business.
    The Committee is concerned that such a dramatic reversal of 
long-standing practice could be taken by an agency without 
giving the affected people an opportunity to comment. 
Accordingly, section 725 of the reported bill requires FAA to 
rescind its earlier notice and give the public a opportunity to 
comment on a new set of rules. The new rules would be similar 
to current part 91 regulations but with certain specified 
enhancements designed to improve the safety of Alaska guide 
pilots.
    Noise.--Congress recognizes the airspace over New York and 
New Jersey has some of the densest airline traffic in the 
country, and as such the residents of New York and New Jersey 
feel that they suffer from some of the worst aircraft noise in 
the United States.
    Congress is concerned about the FAA's failure to alleviate 
aircraft noise over New York and New Jersey and provide 
substantial relief to the residents of these states.
    The FAA should provide real and substantial air noise 
relief to the residents of New York and New Jersey. The FAA is 
further directed to work with local officials, citizens 
advocacy groups, and the Port Authority of New York and New 
Jersey to develop and take appropriate steps to reduce aircraft 
noise over New York and New Jersey as soon as possible.
    Weather.--FAA and the National Weather Service have 
recently completed a plan to terminate their joint program for 
installing and maintaining equipment providing automatic 
weather observations, known as ASOS. During this program's 
life, users have identified numerous problems, many of which 
remain unresolved. Yet, the Committee is concerned that the FAA 
still does not have formal plans to meet existing and future 
weather reporting requirements, especially at smaller airports, 
with commercial technologies. Given the importance to aviation 
safety of timely and accurate weather reporting, the Committee 
requests that the FAA report no later than March 31, 2000 with 
a detailed plan on future requirements leading to a competitive 
procurement of commercial, off-the-shelf automated weather 
observing systems incorporating current technology or a 
detailed explanation as to why such a plan would not be 
appropriate.
    Procurement.--The Committee encourages the FAA to review 
its procurement practices. In general, FAA's procurement 
inquiries or requests should be designed to include as many 
qualified venders as possible. Specifically, procurement 
specifications should not contain the name or part number of a 
particular vendor where multiple approved vendors exist.
    Local Area Augmentation System.--The committee applauds the 
FAA's formation of Government Industry Partnerships for the 
deployment of the Local Area Augmentation System (LAAS). The 
committee has long been supportive of the Government/Industry 
Partnership concept as an innovative way of doing business.
    The first public use LAAS systems will be available in mid 
2001. In order to take full advantage of this critical 
technology as soon as possible, the committee believes the FAA 
should ensure robust funding for this program, including funds 
to begin the procurement of LAAS stations in FY 2001.
    Remote maintenance monitoring.--Remote maintenance 
monitoring (RMM) systems offer advantages to the FAA by 
improving the productivity of system specialists and providing 
more continuous monitoring of air traffic control facilities 
and equipment. The FAA's new radar systems have RMM capability. 
However, older systems may not have this capability and their 
continued use, without RMM, may not be cost-effective or allow 
service outages that could have been avoided with better 
monitoring. The Committee recommends that the FAA evaluate 
whether installing RMM on these older facilities and equipment 
would be a good investment, including identifying what 
personnel benefits such a plan might provide, and report to the 
Committee on this matter.
    Software procurements.--The Committee recommends that the 
FAA assess the prior work of the Office of Information 
Technology and identify processes and guidelines to help the 
FAA address the shortcomings noted in software dependent 
procurements. The Committee encourages the FAA to conduct an 
in-depth analysis of the processes within the FAA which are 
affected by commercial off the shelf technologies, identify new 
methods to test and validate safety critical systems that are 
not dependent on source code analysis, and investigate ways to 
reduce cost and time to establish high confidence in a system.
    New towers.--The Committee is concerned that FAA is not 
following announced schedules for the construction of new 
towers. In some cases this delay will result in problems such 
as ``line-of-sight'' blockage of part of a main runway and 
adjacent taxiway system and force continued reliance on an 
existing, inadequate control tower. In other cases, the tower 
height is below FAA sighting standards for visual monitoring of 
aircraft and airport vehicle movements. The Committee is 
concerned about potential hazards of this type and urges FAA to 
follow their original construction schedule in these instances.

                               Conclusion

    The Aviation Investment and Reform Act for the 21st Century 
(AIR 21) is a comprehensive reauthorization of the Federal 
Aviation Administration and the Airport Improvement Program. It 
seeks to address many of the problems plaguing our aviation 
system, by making our airports and skies safer, by injecting 
competition into the airline industry, and by ensuring that the 
investment taxpayers have made in the Aviation Trust Fund is 
returned in the form of affordable, safe air travel.
    AIR 21 is a comprehensive 5-year authorization that will 
benefit all sectors of the airport and airway system.
    Specifically:

For safety

    Provides substantially more money for runways and other 
equipment at airports that will enhance safety there;
    Ensures that FAA has the funding to hire and retain the air 
traffic controllers, maintenance technicians, and safety 
inspectors necessary for the safety of the aviation system;
    Increases the FAA's facilities & equipment budget by 50% so 
that the agency can modernize our antiquated air traffic 
control system;
    Authorizes funding to improve the training of airport 
screeners;
    Makes runway incursion prevention devices and wind shear 
detection devices eligible for AIP funding;
    Requires cargo airlines to install collision avoidance 
systems on their aircraft;
    Provides whistleblower protection for both FAA and airline 
employees so they can reveal legitimate safety problems without 
fear of retaliation;
    Ensures that funding is available to raise safety standards 
at small airports.

For competition

    Provides substantially more money to build terminals, 
gates, taxiways, and other infrastructure to allow additional 
competition at airports;
    Abolishes slots at airports in Chicago and New York to 
permit new competition there;
    Requires medium and large hub airports to file a 
competition plan so that resources can be directed to those 
projects that will do the most to enhance competition.

For the environment

    Significantly increases the amount of money available for 
noise abatement projects;
    Creates a new environmental streamlining program similar to 
the one in TEA-21;
    Establishes a regulatory regime to quiet air tours over our 
national parks;
    Funds a program to encourage airports to use low-emission 
vehicles.

For small airports

    Triples the amount of the minimum entitlement for non-hub 
airports from $500 thousand to $1.5 million per year;
    For the first time, provides entitlement money for general 
aviation airports (this is based on their needs as set forth in 
FAA's national plan of integrated airport systems (NPIAS) to a 
maximum of $200 thousand per year);
    Triples the small airport fund;
    Authorizes a contract tower cost sharing program so that 
small airports can get the benefits of air traffic control 
services;
    Creates a loan guarantee program to help airlines buy 
regional jets if they agree to use them to serve small 
airports;
    Creates a new funding program to help small underserved 
airports market and promote their air service.

For large airports

    Triples the amount of the annual passenger entitlement for 
primary airports (airports with 10,000 or more passengers per 
year);
    Lifts the $22 million cap on the amount of annual 
entitlement money that a large airport can receive;
    More than doubles the amount of entitlement money for cargo 
airports;
    Increases the discretionary fund so that FAA can fund many 
high- priority airport improvement projects;
    Protects funding for Letters of Intent (LOIs) and makes 
clear that it is not necessary that an airport assess a 
passenger facility charge (PFC) in order to get an LOI;
    Raises the cap on the PFC so that an airport has the 
flexibility to proceed on its own with those improvement 
projects that cannot be funded through the Federal Airport 
Improvement Program.

For pilots and passengers

    Reforms the management of the FAA's air traffic control 
system by creating an oversight board similar to the one 
established in the recent IRS reform legislation;
    Strengthens the provisions of the Aviation Disaster Family 
Assistance Act that was created following the Valujet and TWA 
800 crashes;
    For the first time, explicitly prohibits racial 
discrimination in air travel;
    Allows pilots to appeal an emergency revocation of their 
license to the safety board;
    Ensures that the taxes pilots and passengers pay will 
actually be used to fund the safety, security and 
infrastructure they need for a safe and expeditious journey.

                       Section-by-Section Summary


Section 1.--Short title; table of contents

    This section provides that the Act may be cited as the 
``Aviation Investment and Reform Act for the 21st Century.''

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

    This section states that the amendments in this bill are to 
Title 49 of the U.S. code.

Section 3.--Applicability

    States that except where stated otherwise, the provisions 
of this bill take effect in fiscal year 2000.

Section 4.--Administrator defined

    States that the term ``Administrator'' means the FAA 
Administrator.

               TITLE I.--AIRPORT AND AIRWAY IMPROVEMENTS

Section 101. Airport Improvement Program

    Authorizes the following for the Airport Improvement 
Program (AIP):
          $2.475 billion for fiscal year 2000,
          $4 billion for fiscal year 2001
          $4.1 billion for fiscal year 2002
          $4.25 billion for fiscal year 2003, and
          $4.35 billion for fiscal year 2004.

Section 102. Airway facilities improvement program

    Subsection (a) authorizes the following for FAA's 
Facilities & Equipment (F&E;) program:
          Such sums as may be necessary for fiscal year 2000,
          $2.5 billion for fiscal year 2001, and
          $3 billion for each of fiscal years 2002 through 
        2004.
    Subsection (b) states that of the amount authorized in 
2000, $8 million may be used to purchase and install universal 
access systems at airports. Nothing in this subsection shall be 
construed as requiring airports to purchase and install such 
systems although the Committee believes it would be desirable 
if they do so voluntarily.

Section 103. FAA Operations

    Subsection (a)(1) authorizes the following for FAA 
Operations account:
          Such sums as may be necessary for fiscal year 2000,
          $6.450 billion for fiscal year 2001;
          $6.886 billion for fiscal year 2002;
          $7.357 billion for fiscal year 2003, and
          $7.860 billion for fiscal year 2004.
    Subsection (a)(2) states that of the amounts authorized 
from 2000 to 2004:
          (A) Four-hundred-fifty thousand dollars per year may 
        be used for wildlife hazard mitigation measures;
          (B) Such sums as may be necessary may be used to fund 
        an office in FAA that is dedicated to supporting 
        infrastructure development for the general aviation and 
        the helicopter industry;
          (C) Such sums as may be necessary may be used to 
        modify existing air traffic control procedures to 
        accommodate the tilt-rotor aircraft;
          (D) Such sums as may be necessary may be used to 
        develop approach procedures to better enable 
        helicopters to bring patients to hospitals;
          (E) Three million dollars per year may be used to 
        implement the FAA's plan to reduce runway incursions;
          (F) Two million dollars per year may be used to fund 
        a university consortium to provide an air safety and 
        security management certificate program; and
          (G) Such sums as may be necessary may be used to 
        develop and improve training programs for security 
        screeners.
    Subsection (b) allows money to continue to be spent out of 
the trust fund for FAA operations in accordance with the 
formula in existing law. Whatever portion of FAA operations 
that the trust fund does not cover will be paid for from the 
general fund of the Treasury. There is a special rule for years 
2000 through 2004 that would allow the trust fund limitation to 
be increased to ensure that the payment from the general fund 
does not exceed the general fund monies provided in FY 1998.

Section 104. AIP formula changes

    Subsection (a) eliminates the current cap and floor on the 
AIP discretionary fund but ensures that all letters of intent 
are funded. If there is not enough money in the discretionary 
fund to cover the letters of intent, then the difference would 
be made up by pro rata reductions in the entitlements and set-
asides.
    Subsection (b) changes the formula for passenger 
entitlements at primary airports (those with more than 10,000 
passengers in a year).
    Paragraph (1) triples the entitlement (the amount of money 
that primary airports are guaranteed to receive in a year), 
triples the minimum entitlement from $500,000 to $1.5 million 
for small primary airports, and removes the $22 million cap on 
the maximum entitlement that a large primary airport can 
receive.
    Paragraph (2) allows an airport to receive its previous 
year's entitlement if it has temporarily fallen below the 
10,000-passenger threshold as a result of a strike or natural 
disaster. This paragraph also allows a new primary airport to 
receive the minimum entitlement in its first year without 
having to wait for the FAA's official enplanement count. In 
other words, if an airport opened in November 1998 or March 
1999, it would receive the minimum entitlement in the fiscal 
year that begins on October 1, 1999 (i.e. fiscal year 2000). 
This applies to new airports not to replacement airports, which 
would get the entitlement of the airport it was replacing.
    Subsection (c) increases the entitlement for cargo airports 
from 2.5% to 3% of total AIP funds.
    Subsection (d) increases the State entitlement for general 
aviation airports from 18.5% to 20% and makes corresponding 
changes to the portion that goes to the territories to ensure 
that they do not receive a windfall from this change. From this 
20%, each general aviation airport is given an entitlement that 
is either $200,000 per year or one-fifth of that airport's 
infrastructure needs as set forth in the FAA's national plan, 
whichever is less. The remaining amounts are distributed in the 
same way as under current law.
    Subsection (e) permits money received by Alaska, Hawaii, or 
Puerto Rico under the State entitlement to be used for any 
public airport in those states.
    Subsection (f) permits State entitlement money to be used 
for system planning.
    Subsection (g) allows State highway specifications to be 
used for runway, taxiway, and apron pavement at general 
aviation airports serving aircraft that weigh less than 60,000 
pounds. FAA may allow this only if it determines that it will 
not hurt safety or shorten the life of the pavement.
    Subsection (h) increases the noise set-aside from 31% of 
the discretionary fund to 34% of that fund and makes a non-
substantive technical change in the set-aside for the military 
airport program to allow that program to continue.
    Subsections (i) and (j) triple the supplemental 
apportionment for Alaska and make technical changes with 
respect to Alaska.

Section 105. Passenger facility fees

    Subsection (a) authorizes the FAA to permit an airport to 
levy a passenger facility charge (PFC) of more than $3 if the 
FAA finds that--
          (A) The project will make a significant contribution 
        to improving safety or security, increasing competition 
        among airlines, reducing current or anticipated 
        congestion, or reducing the impact of aviation noise;
          (B) The project cannot reasonably be expected to be 
        paid for from the higher AIP; and
          (C) The amount of the higher PFC will not be more 
        than $6.
    Subsection (b) directs the FAA to permit an airport to 
charge the higher PFC to pay for terminal construction or for a 
highway or transit project only if the airport has made 
adequate provision for financing the airside needs of the 
airport such as runways, taxiways, aprons, and aircraft gates.
    Subsection (c) requires a medium or large hub airport that 
charges a PFC of more than $3 to forego 75% of its passenger 
entitlement money. The money foregone goes into the small 
airport fund.

Section 106. Budget submission

    Requires the FAA to submit its annual budget estimates to 
the authorizing Committees at the same time that it submits 
those documents to the Appropriation Committees.

Section 121. Runway incursion prevention devices; emergency call boxes

    This section makes runway incursion prevention devices, 
such as integrated in-pavement lighting systems, eligible for 
AIP grants and directs that they be considered safety devices 
for the purposes of FAA's priority system. It also makes 
emergency call boxes eligible for funding under the AIP 
program.

Section 122. Windshear detection equipment

    Makes windshear detection equipment eligible for AIP 
funding. The Committee encourages FAA to review the possibility 
of using a Light Detection and Ranging (LIDAR) system capable 
of measuring and predicting windshear using eye safe 
wavelengths. The Committee urges the FAA to continue to review 
and proceed with certification activities for LIDAR and other 
windshear detection devices where appropriate.

Section 123. Enhanced vision technologies

    Requires a study of enhanced vision technologies and makes 
them eligible for AIP funding. This section also requires FAA 
to submit to Congress a schedule for certifying laser guidance 
equipment and cold cathode lighting equipment.

Section 124. Pavement maintenance

    Makes routine maintenance work on runways, taxiways, and 
aprons eligible for AIP funds at general aviation and small 
commercial service airports.

Section 125. Competition plans

    Requires medium and large hub airports that are dominated 
by one or two airlines to file competition plans in order to 
receive an AIP grant or to obtain approval for a PFC after 
October 1, 2000. Sets forth the contents of that plan. There is 
no requirement for an airport to hold public meetings or engage 
in notice and comment procedures in the development of the 
plan. Nor does this provision give an airport any authority to 
control an airline's rates, routes, or services.

Section 126. Matching share

    Permits grants under the State Block grant program to 
include a local share that is more than the usual 10%. Also 
waives the requirement for a local match at non-hub and general 
aviation airports during the first year that the higher funding 
levels of this bill go into effect.

Section 127. Letters of intent

    This section makes it easier for small hub and non-hub 
airports to receive a letter of intent (LOI) by limiting to the 
larger airports the criteria that the project must enhance 
system-wide capacity significantly.
    This section also makes clear that an airport may not be 
required to impose a PFC in order to obtain an LOI. When 
Congress permitted airports to assess a PFC in 1990, it was 
intended to be a purely voluntary choice. It was never intended 
that airports would be required to impose PFCs on their 
passengers. Congress also spelled out in statute the criteria 
by which FAA would decide which airports could obtain LOIs. 
Nowhere did the statute provide that an airport's decision to 
impose a PFC could be made a criterion by which FAA determined 
whether to grant an LOI to an airport. Such a linkage is 
contrary to law and contrary to the stated policy of the FAA. 
This section reemphasizes that an airport's willingness to 
charge a PFC cannot be a criterion in deciding whether that 
airport can receive an LOI.

Section 128. Grants from small airport fund

    Subsection (a) sets aside $15 million or 20%, whichever is 
less, of the amounts in the small airport fund and dedicates it 
to non-hub airports for projects that will help bring these 
airports into compliance with the standards of the new small 
airport certification rules. This set-aside would begin in the 
first fiscal year after these new rules take effect. See 
section 506 below. It would end 4 years later or when the FAA 
publishes a notice stating that all small airports meet the new 
standards, whichever occurs first.
    Subsection (b) states that when FAA makes a grant from the 
Small Airport Fund, it must inform the airport receiving the 
grant that the money is coming from that fund. The Committee is 
concerned that many small airports are not aware that they are 
benefiting from money turned back by the large airports that 
have chosen to assess a PFC.
    Subsection (c) directs FAA to give runway extension and 
other projects that will support operations by turbine powered 
aircraft priority for grants from the general aviation airport 
portion of the small airport fund when the community is willing 
to provide a 40% local share.

Section 129. Discretionary use of unused apportionments

    This section amends subsection (f) of section 47117, which 
is 47117(g) in current law. The changes are set forth below.
    Paragraph (f)(1) states that if the Secretary finds that an 
AIP entitlement grant apportioned under section 47114 is not 
going to be used, that money can be used for another airport 
grant during that fiscal year.
    Paragraph (f)(2) specifies that the Secretary should 
restore the AIP entitlement grant found not to be required 
under paragraph (1), whenever a sufficient amount is made 
available under the AIP for grant obligations, unless it was 
the last fiscal year of availability of that apportionment.
    Paragraph (f)(3) defines the period of availability for the 
restored grant. Section 47117 (b) is in the current statute and 
defines how long a grant is available. If the grant not 
required under paragraph (f)(1) is restored by the first fiscal 
year after it was originally available, then it is available as 
defined in 47117(b). However, if the grant is restored after 
this period, then the grant is available as described under 
47117(b) plus the number of fiscal years which sufficient funds 
were not available to restore the grant.
    Paragraph (3)(A), reserves the amount of grants determined 
as not to be required under paragraph (f)(1) that have not been 
repaid so that it is not distributed under section 47115.
    Paragraph (B) clarifies that paragraph (3)(A) does not 
impair the Secretary from using grants identified as not being 
required under paragraph (1).
    Paragraph (4) specifies that nothing in this subsection 
would allow the Secretary to incur grants for a fiscal year 
above the amount specified for AIP grants (under section 48103)

Section 130. Designating current and former military airports

    Subsection (a) increases the number of airports in the 
Military Airport Program (MAP) from 12 to 20 in FY 2001, 
requires that at least three of them be general aviation 
airports, and allows an airport to be redesignated for the 
program for a period of time that is less than the initial 5-
year designation period.
    Subsection (b) increases the limit on the amount that can 
be spent on terminal buildings at current and former military 
airports from $5 million to $7 million.
    Subsection (c) increases the limit on the amount that can 
be spent on parking lots, fuel farms, utilities, and hangars 
from $4 million to $7 million and adds air cargo terminals to 
the list of items eligible for funding under this subsection.

Section 131. Contract tower cost-sharing

    Paragraph (A) directs DOT to extend the current contract 
tower program to air traffic control (ATC) towers that do not 
now qualify for the program.
    Paragraph (B) requires FAA, in administering this program, 
to--
          (i) consider analyses and data provided by the 
        airport;
          (ii) select only those airports willing to pay a pro 
        rata cost of operating the facility; and
          (iii) select no more than two airports willing to pay 
        for a portion of constructing the tower.
    Paragraph (C) lists the characteristics of the airport that 
the FAA should consider in deciding which ones should get 
priority for this program. They are the following:
          (i) Airports that are participating in the current 
        program but have been notified that they will be 
        terminated because their benefit to cost ratio is less 
        than 1.
          (ii) Towers that the FAA has determined have a 
        benefit-to-cost ratio of at least 0.85.
          (iii) Airports at which the tower was closed as a 
        result of the air traffic controllers strike in 1981.
          (iv) Airports that are receiving subsidized essential 
        air service.
          (v) Airports that are prepared to assume some of the 
        construction and maintenance costs of the tower.
          (vi) Airports with safety or operational problems 
        related to their topography, weather, runway 
        configuration, or mix of aircraft.
    Paragraph (D) requires the airport or State or local 
government to share in the costs of operating the tower to the 
extent that the costs of that operation exceed the benefits.
    Paragraph (E) authorizes $6 million for this program.

Section 132. Innovative financing techniques

    Subsection (a) permits 25 AIP grants using innovative 
financing techniques at small hub, non-hub, and general 
aviation airports.
    Subsection (b) states that the purpose would be to provide 
information on the use of innovative financing techniques for 
airport development.
    Subsection (c) prohibits this section from being used to 
guarantee bonds and limits the types of innovative financing 
techniques that can be used to the following:
          (1) payment of interest;
          (2) commercial bond insurance and other credit 
        enhancements associated with airport bonds; and
          (3) paying a higher local share of the grant.

Section 133. Aviation security program

    Subsection (a) permits FAA to carry out at least one 
program to test and evaluate innovative aviation security 
systems and related technology.
    Subsection (b) lists the factors that the FAA should 
consider in deciding which eligible sponsor should receive the 
grant.
    Subsection (c) makes clear that this grant does not require 
a local share.
    Subsection (d) permits FAA to impose terms and conditions 
on the grant.
    Subsection (e) defines an eligible sponsor as a nonprofit 
corporation composed of a consortium of public and private 
persons, including a sponsor of a primary airport, with the 
necessary engineering and technical expertise to successfully 
conduct the testing and evaluation of airport and aircraft 
related security systems. The National Safe Skies Alliance 
would be an example of this.
    Subsection (f) authorizes $5 million per year for this 
program.

Section 134. Inherently Low-Emission Airport Vehicle Pilot Program

    Authorizes AIP grants to 10 airports to pay the added cost 
of purchasing low-emission vehicles as well as the facilities 
and equipment for using those vehicles. Grants are limited to 
$2 million per airport and the Federal share of the grant shall 
be 50%.

Section 135. Technical amendments

    Subsection (a) permits a small commercial service airport 
that had a multi-year agreement with FAA for grants for 
terminal development to continue to receive those grants from 
the discretionary fund even if it loses its primary airport 
status, subject to the availability of funds.
    Subsection (b) permits an airport to waive the PFC for 
airlines that carry very few passengers at the airport, for 
passengers traveling to an airport that has less than 2,500 
passengers per year, and for passengers traveling to a 
community that has less than 10,000 people and is not connected 
by a highway to the National Highway System.

Section 136. Conveyances of airport property for public airports

    Subsection (a) requires notice and comment before FAA may 
waive an assurance that an airport made when it received an AIP 
grant to buy land.
    Subsection (b) requires notice and comment before the FAA 
gives up its reversionary interest in land that an airport 
received from the U.S. government.
    Subsection (c) gives priority consideration to a request of 
an airport for surplus government property.
    Subsection (d) requires notice and comment before FAA 
waives a restriction on an airport's use of its property that 
it had received from the government's surplus property. The 
length of the comment period is not specified here or in the 
subsections above but the Committee would suggest 45 days as an 
appropriate period.
    Subsection (e) requires FAA to consider the current and 
future needs of airport users in deciding whether to grant the 
waiver in subsection (d).
    Subsection (f) makes technical changes in the use of 
terminology.

Section 151. Treatment of certain facilities as airport-related 
        projects

    Specifies in more detail the ``related areas'' of the 
airport gate to enable construction of these areas to be paid 
for with PFC revenue.

Section 152. Terminal development costs

    Subsection (a) enables non-hub and small hub airports that 
borrowed money to build a terminal after August 1, 1986 to use 
PFC revenue to pay off the debt if the airport has suffered a 
decline in passengers of at least 16% between 1989 and 1997.
    Subsection (b) allows non-hub and small hub airports that 
borrowed money to build a terminal between August 1, 1986 and 
September 30, 1990 or between June 1, 1991 and October 31, 1992 
to use entitlement funds to pay off the debt if (A) the airport 
submits the required certification, (B) FAA decides that using 
entitlement funds to pay off debt will not defer any project 
affecting safety, security, or capacity, and (C) the airport 
will not use AIP money for new terminal development within 3 
years after using entitlement money to pay off the old debt.
    Subsection (c) conforms section 47119(c) in existing law to 
the change made by subsection (b) above.
    Subsection (d) requires FAA to use the most recent year's 
aviation activity at a small airport to determine the number of 
passengers at the airport and whether the airport is receiving 
scheduled passenger aircraft service if that would qualify that 
airport for discretionary money for terminal development. 
Currently, general aviation airports cannot receive AIP grants 
for terminal development. But, at some, commercial service has 
begun recently. However, FAA does not consider them small 
commercial service airports (thereby qualifying them for 
terminal development grants) until the official enplanement 
count is completed. There is often a 2-year lag time before 
this is done. This provision directs FAA to look at aviation 
activity at the airport in the year scheduled air service 
begins there to determine whether the airport has the 2,500 
passengers and scheduled operations that would qualify it for 
small commercial service status and thereby for terminal 
development grants.

Section 153. General facilities authority

    Subsection (a) requires FAA to maintain an inventory of 
Instrument Landing Systems in light of the uncertainties 
surrounding the Wide Area Augmentation System.
    Subsection (b) requires FAA to maintain and upgrade Loran-C 
for the same reason.
    The Committee continues to be concerned about the delays 
and uncertainty associated with the Wide Area Augmentation 
System (WAAS). The committee is aware that the FAA conducted a 
market survey to establish that a capability exists for 
procurement of several existing Instrument Landing Systems 
(ILS) and validated that more than 160 airport runway locations 
qualify for the new ILS systems.
    Based on demands for ILS systems, the Committee directs FAA 
to promptly initiate a multi-year procurement for additional 
ILS systems. The committee has authorized funds to initiate 
this program, including funds for site preparation and approach 
lighting systems, and directs that the FAA competitively 
procure equipment to assure that the maximum number of airports 
benefit from this program. This procurement should consider 
systems that do not need additional development. The committee 
believes that implementing such a program will ensure that 
near-term safety and capacity needs of airports are met while 
the FAA implements satellite navigation.

Section 154. Denial of airport access to certain air carriers

    Requires FAA to permit an airport that will be subject to 
the new certification requirement for small airports (see 
section 506 below), but does not intend to obtain such a 
certificate, to block scheduled passenger operations and public 
charter operations there. Otherwise passengers will suffer 
disruption when the new certification rules go into effect 
because scheduled service will cease.

Section 155. Construction of runways

    This section counters provisions in Appropriations Acts 
that prevent funding for an additional runway at a particular 
airport. It is not intended by this provision that that airport 
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 156. Use of recycled materials

    Authorizes $1.5 million for a study of the safety and 
environmental implications of using recycled materials in 
airport pavement. The FAA may contract with a University to 
carry out the study. A report to Congress is required one year 
after enactment.

                title ii.--airline service improvements

Section 201. Access to high density airports

    Subsection (a) eliminates slot restrictions at all airports 
except Ronald Reagan Washington National Airport on March 1, 
2000.
    Subsection (b) allows DOT to issue slot exemptions to 
permit not more than 2 flights per hour and 6 flights per day 
from an underserved airport or in an underserved market to 
Ronald Reagan Washington National Airport. The flights to 
Reagan National must be within the 1,250 mile perimeter and use 
Stage 3 aircraft. Airlines interested in providing the flights 
must apply to DOT. The application process cannot begin until 
30 days after enactment. DOT is required to make a decision on 
an application within 120 days. If the Secretary does not do 
so, the airline can begin the service until DOT acts or FAA 
determines the additional service to be unsafe. The 
introductory clause of section 41714(e)(4) is designed to 
ensure that the Secretary cannot use the obligations or 
limitations of any other law as an excuse for not meeting the 
120 deadline. However, that clause does remain subject to the 
FAA's safety authority as set forth at the end of the 
paragraph. The airline may continue to hold the exemption from 
the slot rules as long asit continues to provide the service to 
the small airport or the underserved market that was the subject of the 
original application. It cannot take the slot exemption and use it to 
serve another airport or market. If the airline attempted to do so, the 
Secretary would be expected to withdraw the exemption and take other 
appropriate enforcement action. Whether a carrier is owned, allied or 
has another sort of relationship with some other carrier should not 
affect its ability to obtain slot exemptions under this provision.

Section 202. Funding for air carrier service to airports not receiving 
        sufficient service

    Subsection (a) increases the amount of money in the current 
fund in 49 U.S.C. 41742 from $50 million to $60 million.
    Subsection (b) states that the money in this fund shall be 
spent as follows:
         (A) $50 million to carry out the Essential Air Service 
        (EAS) Program;
         (B) $10 million to subsidize air service to an 
        underserved airport for no more than 3 years or to 
        assist an underserved airport to market or promote its 
        air service.
Any money left over is to be used to improve air safety at 
rural airports (those with less than 100,000 passengers). The 
100,000 threshold is used because it is consistent with the 
definition of rural airports for ticket tax purposes in section 
1031(e) of Public Law 105-34, 111 Stat. 930. If more than $60 
million becomes available to the fund in 49 U.S.C. 41742, at 
least half of that additional amount must be used for the 
subsidy and marketing at underserved airports described in 
paragraph (1)(B) above. In addition to the $10 million 
guaranteed, this subsection also authorizes an additional $15 
million for the same subsidizing and marketing program. DOT is 
directed to give priority for funding for the marketing program 
to those communities that are willing to provide local tax 
revenue to assist in the effort to improve air service at their 
airport. The airports that qualify for this program are non-hub 
and small hub airports that DOT determines have insufficient 
air service or that are on DOT's list as having unreasonably 
high air fares (an average yield of more than 19 cents).

Section 203. Waiver of local contribution

    Waives the local contribution that is required for certain 
communities receiving subsidized essential air service if the 
community was designated as eligible or its proposal was 
approved within the specified dates.

Section 204. Policy for air service to rural areas

    Adds to the statement of general policy the goal of 
ensuring that everyone, including those in small communities 
and rural areas, has affordable access to scheduled air 
service.

Section 205. Determination of distance from hub airport

    Several Appropriations Acts have restricted eligibility for 
subsidized air service under the essential air service program 
to communities that are more than a specified distance from a 
hub airport. This section states that in making a determination 
as to whether a community is eligible under the distance 
criteria, DOT shall measure the distance using the most 
commonly used highway route between the community and the hub 
airport.

Section 211. Establishment of regional air service incentive program

    This section adds a new Subchapter III at the end of 
Chapter 417, as follows:
    Section 41761 states that the purpose of the program is to 
improve jet service to underserved markets by assisting 
commuter airlines in the purchase of Regional Jets.
    Section 41762 defines terms.
    Section 41763 authorizes, subject to appropriation, DOT to 
make Federal credit instruments in the form of secured loans, 
loan guarantees and lines of credit for aircraft purchases 
available to commuter airlines and new airlines.
    Subsection (b) establishes conditions and limitations on 
the secured loans. The subsection states that DOT may not 
provide a secured loan that--
         (1) exceeds 50% of the purchase price of an aircraft 
        and the value of any manufacturer discount, post-
        purchase options or other discounts;
         (2) permits repayment more than 18 years after the 
        date of execution; or
         (3) in conjunction with any other Federal credit 
        instrument, exceeds $100 million for any single 
        obligor.
    The Secretary may allow a secured loan to be subordinate to 
claims of other debt holders. The Secretary may also allow 
scheduled loan repayments to be deferred up to three years 
after the date of execution of the loan agreement.
    Subsection (c) establishes conditions and limitations on 
the loan guarantees. The subsection states that DOT may not 
make a loan guarantee--
         (1) for more than the unpaid interest and 50% of the 
        unpaid principal;
         (2) for any loan or combination of loans that exceeds 
        50% of the purchase price of an aircraft and the value 
        of any manufacturer discount, post-purchase options or 
        other discounts;
         (3) on any loan that permits repayment more than 15 
        years after the date of execution; or
         (4) that, in conjunction with any other Federal credit 
        instrument, exceeds $100 million for any single 
        obligor.
    Subsection (d) establishes conditions and limitations on 
the lines of credit. The subsection states that DOT may not 
provide a line of credit that --
         (1) exceeds 50% of the purchase price of an aircraft 
        and the value of any manufacturer discount, post-
        purchase options or other discounts;
         (2) allows that amount drawn in any year to exceed 20% 
        of the total line of credit; or
         (3) is available more than 5 years after the aircraft 
        purchase date.
    Any draw on a line of credit shall represent a direct loan 
and may be subordinate to the claims of other debt holders. 
Repayment of such direct loan may not be deferred more than 
three years after the date of execution and must be repaid in 
full not later than 18 years after the date a draw on the line 
of credit.
    Subsection (e) states that that before entering into an 
agreement to make available a Federal credit instrument under 
this section, the Secretary shall consult with the Director of 
the Office of Management and Budget to determine the 
appropriate capital reserve subsidy amount for that Federal 
credit instrument based on any credit evaluation deemed 
necessary by the Secretary.
    Subsection (f) requires DOT, before making a Federal credit 
instrument available, to find that:
         (1) the aircraft being purchased is a regional jet;
         (2) the airline will use the jet to serve an 
        underserved market with at least 2 round-trips per day, 
        5 days per week; and
         (3) the airline will be able to repay the Federal 
        credit instrument.
    Subsection (g) states that DOT may not allow the combined 
amount of Federal credit instrument available for any aircraft 
purchase to exceed--
         (1) 50% percent of the cost of the aircraft purchase; 
        or
         (2) $100,000,000
    Subsection (h) states that the aircraft purchased with a 
Federal credit instrument under this section must be a stage 3 
quiet aircraft.
    Subsection (i) requires the aircraft purchased with Federal 
credit instruments be used to serve an underserved market for 
at least 3 years.
    Section 41764 permits DOT to utilize the services of other 
Federal agencies in implementing this program and requires DOT 
to make available to GAO any information requested.
    Section 41765 authorizes the use of funds made available by 
appropriations to the Department of Transportation for purposes 
of administration in addition to any fees collected under this 
subchapter to cover administrative expenses under this 
subchapter.
    Section 41766 authorizes appropriations for subchapter III 
of chapter 417 of title 49 USC for the fiscal years 2000 
through 2004.
    Section 41767(a) terminates authority of the Secretary of 
Transportation to issue Federal credit instruments under this 
subchapter after 5 years.
    Section 41767(b) requires the Secretary to continue to 
administer the program established this subchapter until all 
obligations associated with any Federal credit instrument have 
been satisfied.
    All commuters are to be treated equally under this program 
regardless of whether they are owned by, allied with, code-
share with, or have some other relationship with a major 
airline.

                   TITLE III.--FAA MANAGEMENT REFORM

Section 301. Air Traffic Control System defined

    Defines the elements and functions of the FAA that will be 
subject to oversight by the new management board established in 
the next section. The intent of this language is to make clear 
that all areas involved in the performance of air traffic 
services would fall into this category. Besides those areas 
specifically mentioned in the bill, this would include elements 
of the FAA that (a) plan, monitor, control, schedule and 
implement the acquisition of material, equipment and services 
for the National Airspace System (NAS), (b) manage, direct, and 
coordinate the research, development, acquisition, testing, 
integration and support of air traffic systems, (c) research, 
develop, acquire, test, implement, and support communications, 
navigation, and surveillance system requirements for the NAS, 
(d) develop programs for applying new scientific and advanced 
technologies to meet NAS requirements, (e) develop flight 
procedures and, (f) plan, develop, and deploy the free flight 
program.

Section 302. Air Traffic Control Oversight Board

    Subsection (a) establishes the Board. The Board shall be 
composed of 9 members. Six shall be non-Federal employees 
appointed by the President and confirmed by the Senate. The 
remaining three shall be the DOT Secretary, the FAA 
Administrator, and the head of one of the air traffic control 
system unions. The members of the Board must be U.S. citizens 
and have expertise in an area relevant to the Board's 
responsibilities. At least 3 of the 6 non-Federal employee 
members should have a background in aviation but none may have 
a pecuniary interest or be engaged in an aviation business or 
be a member of an aviation advocacy organization when serving 
onthe Board. The members are appointed for staggered 5-year 
terms except the union head, whose term shall be for 3 years or the 
length of service as union chief, whichever is less. A member cannot 
serve more than two 5-year terms. Five members of the Board shall 
constitute a quorum. A member may be removed only for cause. The Board 
is responsible for overseeing the air traffic services strategic plan, 
its modernization program, operational plans, appointment of top 
officials, and budget. The DOT Secretary and the FAA Administrator must 
report any action overturning a Board decision to the President and to 
the relevant Committees of the House and Senate.
    Subsection (b) requires the President to submit nominations 
for the Board within 3 months and protects any FAA actions 
taken before the appointment of the Board.

Section 303. Chief operating officer

    Requires the appointment of a Chief Operating Officer (COO) 
to manage the day-to-day operation of the air traffic control 
system. The COO is appointed for 5 years by the FAA 
Administrator, subject to approval by the Board, and may be 
removed by the Administrator.

Section 304. Federal Aviation Management Advisory Council

    Under existing law, the President, with the advice and 
consent of the Senate, appoints this Council. This section 
retains this procedure for the initial appointments to the 
Council. However, the DOT Secretary will make all subsequent 
appointments. The Committee is disappointed that, more than two 
years after its creation, no member of this Council has been 
appointed. Part of the reason for this is the current 
appointment process. Moving the responsibility for appointments 
down to the Secretarial level should help speed up the process. 
It will also make clear that the new Oversight Board has a 
higher stature than this Council. The Council is to be composed 
of aviation interests that advise the FAA while the Board is to 
be composed of independent interests that oversee portions of 
the FAA. However, the Committee is aware that the current 
presidential appointment process for the Council is moving 
forward and we do not want this legislation to interfere with 
that. The Council should be appointed as soon as possible. 
Therefore, the reported bill retains the method of appointment 
in current law for the initial appointments, with the Secretary 
making all subsequent appointments.

Section 305. Environmental streamlining

    Subsection (a) sets forth a process where the Secretary of 
Transportation will develop a coordinated environmental review 
process for aviation infrastructure projects that requires a 
federal environmental review, analysis, opinion, permit, 
license or approval. The Secretary shall implement this process 
through Memoranda of Understanding with the appropriate Federal 
or State agencies that set forth a cooperatively determined 
time period to do concurrent review. This time period shall 
take into account agency resources and statutory commitments.
    Subsection (b) states that the coordinated environmental 
review process shall include an identification of all potential 
Federal agencies that have jurisdiction by law over 
environmental related issues that may be affected by the 
project or may be required by Federal law to conduct an 
environmentally related review or analysis or issue a permit, 
license, approval or opinion on the environmental impact of the 
project. The Secretary and the head of each identified Federal 
agency shall establish time periods for review for all agency 
environmental comments, analyses, permits, licenses, or 
approvals so that each agency's approval shall be completed 
within the established time periods for review. These reviews, 
including those required by the National Environmental Policy 
Act (``NEPA''), shall be conducted concurrently, unless 
conducting a concurrent review would result in a significant 
adverse effect on the environment, would substantively alter 
Federal law, or would not be possible without information 
developed during the review process. This last exception is 
intended to ensure that agencies are not put in the position of 
having to complete environmental reviews before they have 
sufficient information to conduct a sufficient review. Any time 
periods established under this section should be consistent 
with time periods established by the Council on Environmental 
Quality. The Secretary and any concerned Federal agency may 
extend the agreed upon time period if additional time is needed 
for analysis and review as a result of new information that 
could not have reasonably been anticipated.
    Subsection (c) states that the Secretary may close the 
record on the matter if a Federal agency has not completed its 
review within the agreed upon time period. If the Secretary 
finds that an environmental issue has not been resolved after 
timely compliance with the review process, the Secretary and 
the head of the involved agency shall resolve the issues within 
30 days of the Secretary's finding.
    Subsection (d) states that for any project eligible for 
AIP, a State may require its agencies that have jurisdiction 
over any environmental aspects of the project to be subject to 
the coordinated environmental review process unless the 
Secretary determines that the State's participation would not 
be in the public interest.
    Subsection (e) states that the Secretary may make funds 
available to an affected Federal agency to provide resources 
necessary to meet any time limits established under this 
section upon request by a State or recipient.
    Subsection (f) states that this section shall not affect 
the reviewability of any final agency action in federal or 
state court or the applicability of NEPA.
    Subsection (g) defines the term Federal Agency.

Section 306. Clarification of regulatory approval process

    The Committee is concerned about delays in promulgating 
rules that are caused by lengthy and, in many cases, 
unnecessary Secretarial review. Rules like upgrading safety 
standards for repair stations have languished for no apparent 
reason. Accordingly,this section raises from $100 million to 
$250 million the threshold that would trigger Secretarial review of an 
FAA regulation. It also limits the type of regulations that would be 
considered significant enough to justify Secretarial review.

Section 307. Independent study of FAA costs and allocations

    Directs the DOT Inspector General to undertake an analysis 
of the cost accounting system that FAA is developing to ensure 
that it is appropriate, reasonable, and understandable.

                      TITLE IV.--FAMILY ASSISTANCE

Section 401. Responsibilities of National Transportation Safety Board

    Subsection (a) makes three changes to the current 
moratorium on lawyer solicitation of families following an 
accident. These changes are--
          (A) Applying the moratorium to accidents involving 
        foreign airlines that occur in this country;
          (B) Applying the moratorium to associates, agents, 
        employees or other representatives of the attorney; and
          (C) Increasing the moratorium period from 30 to 45 
        days.
The last two changes adopt recommendation 7.2 of the Final 
Report of the Task Force on Assistance to Families of Aviation 
Disasters that was established pursuant to section 704 of the 
Aviation Disaster Family Assistance Act of 1996, 110 Stat. 
3268. This subsection also provides for enforcement of the 
moratorium on lawyer solicitation.
    Subsection (b) allows counselors and mental health workers 
of the Red Cross (or other designated organization) to offer 
their services at the crash scene for 30 days even if they are 
not licensed in that state. The NTSB's family liaison can 
extend this period for another 30 days if needed and if the 
local authorities are notified. This implements Recommendation 
6 of the Task Force.
    Subsection (c) extends the family assistance services to 
employees of foreign airlines and to other people aboard the 
flight even if they did not pay for the seat or hold a 
reservation for the flight.
    Subsection (d) moves the free-standing provision in section 
705 of the Family Assistance Act into Title 49.

Section 402. Air carrier plans

    Subsection (a) mandates several changes to the airlines' 
disaster assistance plans. These changes are--
          (1) Requiring airlines, upon request, to inform the 
        family as to whether the person had a reservation on 
        the flight (This implements Task Force Recommendation 
        1.2.4.);
          (2) Requiring airlines to provide adequate training 
        to employees in meeting the needs of families (This 
        implements Task Force Recommendation 1.4);
          (3) Requiring airlines to update their disaster 
        assistance plans in light of the above new requirements 
        within 180 days; and
          (4) Requiring airlines to consult with the NTSB and 
        the State Department when they help families in the 
        U.S. affected by a crash outside the country.
    Subsection (b) limits the liability of an airline that 
informs a family as to whether the person had a reservation on 
the flight.
    Subsection (c) is the same as subsection 401(d) above.

Section 403. Foreign air carrier plans

    Subsection (a) adds non-revenue passengers to those 
entitled to services under the Aviation Disaster Family 
Assistance Act.
    Subsection (b) changes a word so that the portions of the 
statute dealing with U.S. and foreign airlines will be 
consistent.
    Subsection (c) requires foreign airlines to provide the 
same training to employees as U.S. airlines. Foreign airlines 
are given 180 days following the date of enactment to update 
their disaster assistance plans to reflect this. It also 
requires foreign airlines to consult with the NTSB and the 
State Department when they help families in the U.S. affected 
by a crash outside the country.

Section 404. Applicability of Death on the High Seas Act

    Makes clear that the Death on the High Seas Act does not 
apply to aviation accidents. The provision does not say what 
law would apply as the Committee expects courts to apply normal 
choice of law analysis considering such things as where the 
ticket was bought, where the parties reside, etc.

                            TITLE V.--SAFETY

Section 501. Cargo collision avoidance systems deadline

    Subsection (a) requires cargo aircraft with a maximum 
certificated takeoff weight in excess of 15,000 kilograms 
(about 33,000 pounds) to be equipped with collision avoidance 
systems by December 31, 2002 that provide a margin of safety 
that is at least as good as TCAS II. According to FAA 
officials, this would cover aircraft as small as the Fokker 27.
    Subsection (b) permits FAA to extend the deadline 2 years 
if that would promote safety.

Section 502. Records of employment of pilot applicants

    Makes the following changes to the Pilot Records 
Improvement Act:
          (1) Exempts the military from the requirement to 
        provide records;
          (2) Limits the records that must be provided to those 
        that involve the individual's performance as a pilot;
          (3) Allows an airline to hire a pilot previously 
        employed by a foreign airline without receiving the 
        records from that airline if it has made a documented 
        good faith effort to obtain those records; and
          (4) Permits certain people to have electronic access 
        to FAA records in order to speed up the record checking 
        process.

Section 503. Whistleblower protection for FAA employees

    Restores the procedures for protecting FAA employees who 
``blow the whistle'' on safety problems.

Section 504. Safety risk mitigation programs

    Requires the FAA to issue guidelines and encourage the 
development of air safety risk mitigation programs throughout 
the aviation industry, including self-audit and self-disclosure 
programs. This is intended to implement one of the 
recommendations of the National Civil Aviation Review 
Commission that can be found at page III-20 of the Commission's 
report.

Section 505. Flight operations quality assurance rules

    Requires FAA to issue a rule to protect airlines and their 
employees from civil enforcement actions under the Flight 
Operations Quality Assurance (FOQA) program. FOQA is based on 
trust. If people feel they will be punished for sharing 
information, they will not provide it and the public safety 
benefit will be lost. Encouraging the voluntary sharing of 
safety-related information has been a long-standing interest of 
this Committee. See, for example, section 402 of the Federal 
Aviation Reauthorization Act of 1996, 110 Stat. 3255, and pages 
4 and 5 of H. Rept. 104-682.

Section 506. Small airport certification

    Requires FAA to issue within 60 days the proposed rule 
implementing the requirement that small airports obtain a 
certificate. This requirement was first imposed by section 404 
of the Federal Aviation Reauthorization Act of 1996, 110 Stat. 
3256. The final rule must be issued within 1 year of the close 
of the comment period. This provision does not override the 
requirements in subsections (d) and (e) of 49 U.S.C. 44706.

Section 507. Life limited aircraft parts

    Subsection (a) requires FAA to initiate a rulemaking 
proceeding to require the safe disposition of life-limited 
parts. This could be done as a separate rulemaking or as part 
of an ongoing rulemaking initiative.\54\ Various acceptable 
methods of disposition are described. These include segregation 
of the part, destruction of the part, and the permanent marking 
of the part (with a phrase such as ``not to be used for 
aviation'' or a readily identifiable symbol indicating the 
same) when it is removed from an aircraft because it is about 
to exceed its specified useful life. The FAA could supplement 
these with different or additional requirements such as 
requiring segregated parts to also be marked.
    Subsection (b) adds the failure to safely dispose of life 
limited parts to the list of violations in section 46301(a)(3) 
that are subject to a $10,000 civil penalty, subject to the 
inflation adjustment that applies to all the violations listed 
in that section. See 14 CFR Part 13, Subpart H.

Section 508. FAA may fine unruly passengers

    Imposes a maximum $25,000 civil penalty on passengers that 
interfere with a flight crew or endanger the safety of the 
aircraft, its passengers, or crew.

Section 509. Report on Air Transportation Oversight System

    Requires an annual report for the next 5 years on the FAA's 
new inspection system known as the Air Transportation Oversight 
System.

Section 510. Airplane emergency locators

    Revises the existing law governing emergency locator 
transmitters (ELTs) to eliminate the exemption for turbo-jet 
powered aircraft but to add an exemption for large aircraft 
requiring commercial passenger or cargo air service. The effect 
would be to require ELTs on private and business jets as well 
as small non-scheduled carriers like some charters and air 
taxis. Aircraft would not have to be equipped until January 1, 
2002.
---------------------------------------------------------------------------
    \54\ The FAA has informally told the Committee that there is an 
initiative in an Aviation Rulemaking Advisory Committee (ARAC) process 
that could incorporate these changes as part of a recommendation to the 
Agency in a way that would save resources and time.
---------------------------------------------------------------------------

                  TITLE VI.--WHISTLEBLOWER PROTECTION

Section 601. Protection of employees providing air safety information

    Subsection (a) prohibits an airline or a contractor of an 
airline from firing, or taking other adverse action against, an 
employee for doing any of the following:
          (1) Providing information to the employer or Federal 
        government relating to air safety;
          (2) Filing or being about to file (with any knowledge 
        of the employer) a proceeding relating to airline 
        safety;
          (3) Testifying or being about to testify in such a 
        proceeding; or
          (4) Assisting or participating in such a proceeding.
    Subsection (b) governs the filing of complaints by 
aggrieved whistleblowers.
    Paragraph (1) allows whistleblowers who believe they have 
been fired or otherwise treated unfairly in violation of 
subsection (a) to file a complaint with the Secretary of Labor 
within 180 days of the violation. The Labor Department must 
notify the airline and the FAA of the complaint.
    Paragraph (2) directs the Labor Department, within 60 days 
of receiving a complaint, and after giving the airline an 
opportunity to respond, to launch an investigation to determine 
whether there is reason to believe the complaint has merit and 
to notify the parties of its findings. If Labor concludes that 
there is reason to believe a violation has occurred, it shall 
issue a preliminary order providing a remedy. Within 30 days of 
being notified of Labor's findings, either side may file 
objections and request a hearing but this shall not stay a 
reinstatement remedy in the preliminary order. If a hearing is 
not requested within 30 days, the preliminary order becomes a 
final order and is not subject to judicial review.
    Paragraph (3) describes the final order.
    Subparagraph (A) directs the Labor Secretary, within 120 
days after the end of the hearing, to issue a final order 
providing a remedy or denying the complaint. The matter can be 
settled at any time prior to the issuance of the final order.
    Subparagraph (B) lists the remedies that could be ordered. 
They are--
          (i) take action to abate the violation;
          (ii) reinstate the employee with back pay;
          (iii) provide monetary damages to the employee.
If an order is issued under paragraph (3), the Labor Secretary, 
at the request of the employee, shall assess the employee's 
attorney's fees against the airline.
    Subparagraph (C) permits the Labor Secretary to assess the 
airline's attorney's fees against the employee if the Secretary 
finds that the complaint was frivolous. Frivolous complaints 
are not defined but would probably include unfounded complaints 
potentially linked to other job-related matters.
    Paragraph (4) pertains to judicial review.
    Subparagraph (A) permits either party, within 60 days of 
the issuance of the final order, to appeal to the circuit court 
where the violation allegedly occurred or where the employee 
resided at the time of the violation. This shall not stay the 
order unless the court decides otherwise.
    Subparagraph (B) prohibits a person from challenging the 
final order in another judicial proceeding if it could have 
been appealed under subparagraph (A) above.
    Paragraph (5) permits the Labor Secretary to enforce the 
order by bringing suit in a District court against the person 
that has failed to comply. The court may issue an injunction or 
provide other relief.
    Paragraph (6) allows one of the parties to enforce the 
Secretary's order.
    Subparagraph (A) allows the one who won the case before the 
Secretary to sue the other party to force compliance with the 
Secretary's order. The U.S. district court will have 
jurisdiction over the case.
    Subparagraph (B) allows the court to award attorney's fees 
as appropriate.
    Subsection (c) states that any nondiscretionary duty 
imposed by this section is enforceable in a mandamus 
proceeding.
    Subsection (d) makes clear that an employee could be fired 
if the employee, on his or her own, deliberately causes a 
violation of any requirement relating to airline safety.
    Subsection (e) uses a definition of ``contractor'' similar 
to the one found in the drug testing rules at 14 CFR 121, 
Appendix I. This will ensure that employees actually have some 
expertise in a safety-sensitive position in order to avail 
themselves of the protections offered by this legislation.

Section 602. Civil penalty

    Provides a $1,000 civil penalty for the violation of this 
title.

                  TITLE VII.--MISCELLANEOUS PROVISIONS

Section 701. Duties and powers of Administrator

    Lists the statutory responsibilities for which FAA is 
responsible.

Section 702. Public aircraft

    Revises the definition of public aircraft to make it more 
understandable but without intending to make any substantive 
change in the law.

Section 703. Prohibition on release of offeror proposals

    This section is similar to a provision in the National 
Defense Authorization Act of 1997 (P.L. 104-201, 110 Stat. 
2422, 2609) that provided that contractor proposals submitted 
to agencies in response to a solicitation for competitive bids 
are exempt from release under the Freedom of Information Act 
(FOIA). The FAA was not included in this exemption because, 
under procurement reform, it is exempt from the Federal 
Property and Administrative Services Act. This section would 
correct that omission. The section does permit FAA to release 
certain information relating to unsuccessful offeror proposals 
under procedures to be developed after public comment.

Section 704. Multiyear procurement contracts

    Permits FAA to make a contract for not more than 10 years 
for telecommunication services that are provided through the 
use of satellites. Generally, such contracts would be limited 
to 5 years.

Section 705. Federal Aviation Administration personnel management 
        system

    Subsection (a) states that the 60-day period for 
congressional review of a proposed change to the FAA's 
personnel management system shall not include any time during 
which Congress has adjourned for the year.
    Subsection (b) permits an employee to contest an adverse 
personnel action either through contractual grievance 
procedures if the employee is a member of a bargaining unit or 
through the FAA's internal grievance procedure known as 
``Guaranteed Fair Treatment.''
    Subsections (c) and (d) give the employee the further 
option of appealing to the Merit Systems Protection Board 
(MSPB).

Section 706. Nondiscrimination in airline travel

    Prohibits discrimination in air travel on the basis of 
race, color, religion, national origin, sex, or disability.

Section 707. Joint venture agreement

    Makes clear that the notice provisions governing domestic 
alliances only apply to alliances where both the airlines 
involved are major airlines, as currently defined in the law.

Section 708. Extension of War Risk Insurance Program

    Reauthorizes the war risk insurance program for 5 years.

Section 709. General facilities and personnel authority

    Permits FAA to make improvements to real property leased 
for an air navigation facility if certain specified conditions 
are met.

Section 710. Implementation of Article 83 bis of the Chicago Convention

    This section provides the legislative authority for the 
implementation of Article 83 bis of the Convention on 
International Civil Aviation, 7 December 1944, 61 Stat. 1180, 
T.I.A.S. No. 1591, 15 U.N.T.S. 295, known as the Chicago 
Convention. (The suffix bis means that the new article is 
inserted between Articles 83 and 84.) The section permits the 
FAA, through bilateral agreement, to relinquish responsibility 
for U.S.-registered aircraft for which safety oversight 
responsibility is transferred abroad and accept responsibility 
for the foreign-registered aircraft whose oversight is 
transferred to the U.S. The transferred aircraft would be 
treated, for all practical safety oversight purposes only, as 
if they were on the registry of the other country. Paragraph 
(3) prohibits transferring responsibility for U.S.-registered 
aircraft to foreign nations that are not in compliance with 
their obligations under international law for the safety 
oversight of civil aviation. These would typically be countries 
that are in Category II or III under the FAA's international 
aviation safety assessment program.

Section 711. Public availability of airmen records

    Paragraph (1) requires that specified information from the 
airman's certificate to once again be made available to the 
public within 120 days of enactment notwithstanding privacy act 
considerations but subject to paragraph (2).
    Paragraph (2) requires that before this information can be 
made available to the public, the airman must be given an 
opportunity to withhold the information from public release.
    Paragraph (3) directs FAA to work with the aviation 
community to develop and implement not later than 60 days from 
the date of enactment a one-time written notification to airmen 
of the advantages and disadvantages to them of making their 
name and address publicly available.

Section 712. Appeals of Emergency Revocations of Certificates

    Gives pilots, mechanics, carriers, and other FAA 
certificate holders the right to appeal a FAA action that 
revokes their certificate immediately. Under this section, if 
FAA revokes a certificate on an emergency basis, the revocation 
would be effective immediately. However, the person could 
appeal the emergency nature of the revocation, as well as the 
merits of the revocation, to the NTSB. If, within 10 days, two 
members of the Board decide that there is not an emergency, the 
person would get the certificate back while the appeal on the 
merits is pending. If the certificate is given back, the full 
5-member NTSB must review this action within 15 days and either 
uphold it or decide that the FAA was correct and the 
certificate should be revoked while the case is pending. In any 
case, the NTSB continues to have 60 days to decide the merits 
of the appeal. This provision is not intended to impose a new 
standard for determining whether an emergency revocation was 
justified. Under the provision, NTSB would use the same 
standard of review that an appeal would receive if filed under 
49 U.S.C. 46110. This provision merely expedites a process that 
can now sometimes be overly time consuming and expensive for 
the certificate holder.

Section 713. Government and industry consortia

    This codifies in Title 49 a provision from an 
Appropriations Act for fiscal year 1997 (Public Law 104-208) 
that allows FAA to establish consortia of government and 
aviation industry representatives at individual airports to 
provide advice on aviation security and safety.

Section 714. Passenger manifest

    This section returns to the pre-recodification language 
with respect to passenger manifests. A passenger manifest is a 
list of passengers aboard a flight. Prior to the re-
codification of Title 49, the law stated that the manifest 
should include certain information (Section 203 of Public Law 
101-604, 104 Stat. 3082, November 16, 1990). This was designed 
to indicate that DOT had flexibility in specifying the 
information to be included in the manifest. However, the 
recodification changed the word should to shall. In order to 
make DOT's flexibility clear, and because the 1994 
recodification expressly stated that it made no substantive 
change in law, this section returns to the original wording.

Section 715. Cost recovery for foreign aviation services

    This section amends section 45301(a)(2) of Title 49 and 
clarifies the FAA's authority to collect fees for foreign 
aviation services provided by the FAA, such as those provided 
at foreign repair stations and for other foreign activities. 
The FAA has collected such fees since 1995. Fees for 
production-certification related services outside the U.S. are 
not permitted. This section would not affect the FAA's ability 
to collect air traffic control overflight fees as other 
provisions in section 45301 cover that.

Section 716. Technical corrections to civil penalty provisions

    Paragraph (1) deletes references in section 46301(a)(1)(A) 
to section 46302 (providing false information) and section 
46303 (carrying a weapon). Section 46301(a)(1)(A) limits civil 
penalties to $1,000 while sections 46302 and 46303 impose 
penalties of $10,000 by their own terms. Deleting the reference 
would make clear that violations of these two sections carry a 
maximum civil penalty of $10,000.
    Paragraph (2) makes clear that not only individuals, but 
also other persons such as airlines, are entitled to notice and 
an opportunity for a hearing.
    Paragraph (3) adds a reference in the judicial review 
section to orders of the Administrator since civil penalty 
authority also rests in that office.

Section 717. Foreign carriers eligible for waiver under Airport Noise 
        and Capacity Act

    This section would make foreign airlines eligible for the 
same waiver from the December 31, 1999 date for compliance with 
Stage 3 noise levels as is provided to U.S. airlines under the 
Airport Noise and Capacity Act of 1990 (Section 9308(b) of the 
Omnibus Budget Reconciliation Act of 1990). Nothing in this 
section should be construed as encouraging the FAA to grant 
such waivers.

Section 718. Metropolitan Washington Airport Authority

    Subsection (a) extends the deadline for reauthorizing the 
Metropolitan Washington Airport Authority (MWAA) from 2001 to 
2004.
    Subsection (b) eliminates the requirement that the 
additional Federal Directors be appointed before MWAA can 
receive AIP grants or impose a new PFC.

Section 719. Acquisition Management System

    This section would give the FAA flexibility to enter into 
contracts for procurement of severable services that begin in 
one year and end in another. Prior to procurement reform, FAA 
had this flexibility under the Federal Acquisition Streamlining 
Act of 1994 (41 U.S.C. 253l).

Section 720. Centennial of Flight Commission

    Makes technical changes to legislation passed last year 
(P.L. 105-389) establishing a Commission to help celebrate the 
100th anniversary of the Wright Brothers first flight.

Section 721. Aircraft situational display data

    Subsection (a) requires any person that receives aircraft 
situational display data from the FAA to be able to, and to 
agree to, block aircraft registration numbers if the FAA asked 
that they be blocked.
    Subsection (b) requires any existing agreement with the FAA 
to obtain aircraft situational display data to conform to the 
requirements of subsection (a) above.

Section 722. Elimination of backlog of equal employment opportunity 
        complaints

    Authorizes $2 million to help DOT eliminate the backlog of 
pending equal employment opportunity complaints.

Section 723. Newport News, Virginia

    Removes deed restrictions at the airport at Newport News, 
subject to the standard conditions for such waivers.
    Similarly, the Committee understands that the nearby city 
of Norfolk and the Norfolk Airport Authority have negotiated an 
agreement to lease certain property owned by the city with 
compensation in the form of reasonable rent payments, as 
authorized in a legal opinion of the FAA's regional counsel 
dated April 26, 1985. At the time of that opinion, the FAA 
asked the city to provide a commitment in the form of a 
certification that the city would guarantee that the 
obligations assumed by the airport authority as the sponsor of 
AIP grants would not lapse. The city manager instead executed a 
duplicative airport sponsorship agreement in addition to the 
grant assurances that had already been signed by the authority, 
when a commitment in this form was not necessary. This minor 
administrative mistake has complicated approval of the 
leaseback of the airport property to the airport authority. To 
resolve this problem, the Committee strongly urges the FAA to 
take whatever action is necessary to approve and implement the 
lease of the property for reasonable compensation as 
contemplated by the FAA legal opinion of April 26, 1985.

Section 724. Grant of easement, Los Angeles, California

    Permits the granting of an easement to build a road that 
could improve access to Palmdale Airport.

Section 725. Regulation of Alaska air guides

    Subsection (a) requires Alaska air guides to be regulated 
under the FAA rules in 14 CFR Part 91 governing general 
aviation rather than the rules for a commercial operation.
    Subsection (b) directs the FAA to conduct a rulemaking to 
supplement the requirements of Part 91 with additional 
requirements for Alaska Air Guides that are needed to ensure 
air safety without putting these guides out of business.
    Subsection (c) defines terms.

Section 726. Aircraft repair and maintenance advisory panel

    Subsection (a) establishes a panel to review aircraft 
repair stations.
    Subsection (b) describes the 12 members of this panel.
    Subsection (c) describes the responsibilities of the panel. 
These are to determine how much work is done on U.S. and 
foreign aircraft by U.S. and foreign repair stations and to 
provide advice on the staffing needs, balance of trade, and 
safety issues associated with this issue. In developing its 
advice, the panel may consider the similarities and differences 
in the FAA regulations for initial certification and renewal of 
those certificates of foreign and domestic repair stations, the 
similarities and differences in FAA operating regulations of 
those stations, a comparison of the inspection findings 
resulting from surveillance, a comparison of the manner in 
which FAA inspection findings are addressed and documented by 
the certificate holders and the FAA. The panel may also request 
an evaluation of Mechanical Reliability Reports, Mechanical 
Interruption Summary Reports and Malfunction Defect Reports 
submitted to the FAA, an evaluation of component usage 
practices that affect a repair station's ability to determine, 
at the time maintenance is performed, whether a particular part 
will be installed on a U.S. or foreign-registered aircraft and 
where that aircraft will be operated, the practice of repair 
facilities using maintenance subcontractors located in a 
country different from that of the primary maintenance 
provider, the number of foreign repair facilities which are 
wholly owned (or in which a majority interest is held) by a 
corporation that is a citizen of the U.S., the extent to which 
domestic and foreign corporations engaged in the production of 
civil aviation products and parts have an ownership interest in 
or are affiliated with domestic or foreign repair facilities, 
the extent to which certain maintenance services are only 
available in foreign countries, and any other issues that the 
panel considers relevant to the balance of trade or safety of 
foreign and domestic repair facilities.
    Subsection (d) requires DOT to require information to be 
submitted on the balance of trade and safety issues and on the 
extent of alcohol and drug testing at foreign repair stations.
    Subsection (e) requires DOT to facilitate the collection of 
information from other government agencies on these issues.
    Subsection (f) requires DOT to make any relevant non-
proprietary information available to the public.
    Subsection (g) terminates the panel 2 years after the date 
of enactment or December 31, 2001, whichever occurs first.

Section 727. Operations of air taxi industry

    Requires the FAA to study the air taxi industry to increase 
the government and industry's understanding of the size and 
nature of the industry with a view toward using this 
information in the context of future regulatory actions.

Section 728. Sense of Congress concerning completion of comprehensive 
        national airspace redesign

    States that it is the sense of Congress that the FAA should 
complete and begin implementing the comprehensive national 
airspace redesign as soon as possible.

Section 729. Compliance with requirements

    Permits an airport to use a completed environmental 
assessment or environmental impact study for a new project at 
the airport if the completed assessment or study was for a 
project that is substantially similar to the new project and 
meets all Federal requirements for such a study or assessment.

Section 730. Aircraft noise levels at airports

    Subsection (a) requires FAA to continue to work to develop 
a new standard for quieter aircraft.
    Subsection (b) requires annual reports to Congress on this 
work.

Section 731. FAA consideration of certain State proposals

    Encourages the FAA to consider any proposal with a regional 
consensus submitted by a State aviation authority regarding the 
expansion of existing airport facilities or the introduction of 
new airport facilities.

            TITLE VIII.--NATIONAL PARKS AIR TOUR MANAGEMENT

Section 801. Short title

    The short title is the ``National Parks Air Tour Management 
Act of 1999''.

Section 802. Findings

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

Section 803. Air tour management plans for national parks

    This section would require that commercial air tour 
operators conduct air tour operations over a National Park or 
tribal lands within or abutting a National Park in accordance 
with an approved air tour management plan (ATMP).
    Prior to commencing air tour operations over a National 
Park, a commercial air tour operator must apply to the 
Administrator of the FAA for authority to conduct operations 
over the park. The Administrator of the FAA would prescribe 
operating conditions and limitations for each commercial air 
tour operator, and in cooperation with the Director of the 
National Park Service (NPS), develop an ATMP.
    If an ATMP limits the number of commercial air tours over a 
national park area during a specified time frame, the FAA 
Administrator and the Director of the NPS would authorize 
certain commercial air tour operators to provide the service, 
in accordance with an open competitive process developed by the 
two agencies. The section sets forth the factors for 
consideration in authorizing the number of commercial air tours 
in this situation.
    This section would require that commercial air tour 
operators over national parks and tribal lands meet the FAA 
safety criteria codified in 14 C.F.R. Parts 119, 121 or 135, as 
appropriate. Upon enactment of the legislation, existing 
commercial air tour operators would have 90 days to apply to 
the FAA for authority under 14 C.F.R Part 119 to operate under 
Part 135 and Part 121.
    Certain commercial air tour operators, if they meet the 
requirements set forth in 14 C.F.R. 119, could continue to 
conduct tours under the standards of 14 C.F.R. Part 91. The 
operator would be required to secure approval from the FAA and 
the NPS describing the conditions for flight operations. The 
total number of operations under this Part 91 exception would 
be limited to no more than five flights in any 30-day period 
over a single park.
    Any new entrant commercial air tour operator would be 
required to apply for the authority before it can begin 
commercial air tour operations over a National Park or tribal 
lands within or abutting a National Park. The FAA would be 
required to act on new entrant applications within 24 months.
    Section 3 directs the FAA Administrator, in cooperation 
with the Director of the NPS, to develop and establish an ATMP 
for any National Park or tribal land within or abutting a 
National Park whenever a application is made, if an ATMP is not 
already in place. This requirement to establish an ATMP applies 
automatically if commercial air tours already exist over the 
National Park or tribal lands within or abutting National 
Parks.
    An ATMP would be developed through a public process, with 
the appropriate environmental documentation, as required by the 
National Environmental Policy Act, to be signed by both the FAA 
and NPS, and with the final ATMP subject to judicial review.
    The objective of the ATMP is to develop acceptable and 
effective measures to mitigate the significant adverse impacts, 
if any, of commercial air tours upon the natural and cultural 
resources and visitor experiences at National Parks and tribal 
lands within or abutting National Parks.
    Section 3 also lists the possible contents of an ATMP, and 
requires justification and documentation for any measures 
adopted in the ATMP.
    Procedures for developing an ATMP are also outlined in this 
Section. The procedure would require at least one public 
meeting and publication of the ATMP in the Federal Register for 
notice and comment. Amendments to ATMPs would also be required 
to be published in the Federal Register for notice and comment.
    Existing commercial air tour operators at national parks 
would apply for an ATMP to the FAA Administrator, and the FAA 
Administrator would grant these operators interim operating 
authority (IOA) until the ATMP for that National Park is 
complete.
    The FAA Administrator would authorize the operator to 
conduct the same number of tour flights that the operator 
conducted over the past year (or the annual average of the past 
three years, whichever is higher). In order to increase 
operations, the commercial air tour operator would have to 
obtain the approval of the FAA Administrator and the NPS 
Director.
    The IOA would be published in the Federal Register to 
provide notice and opportunity for comment. It could be revoked 
by the FAA Administrator for cause. In any event, it would 
terminate 180 days after an ATMP is developed for the National 
Park.
    New entrants would not be allowed to conduct commercial air 
tour operations over a national park until the ATMP for that 
park is developed.
    Once an ATMP is established for a specific park, it may be 
amended by the Administrator in cooperation with the Director 
of NPS. Any such amendment must be published in the Federal 
Register.
    Section 3 specifically exempts Grand Canyon National Park 
and any NPS unit located in Alaska from the provisions of this 
section regarding the establishment of ATMPs.
    Section 3 also contains definitions for terms used in this 
section.

Section 804. Advisory group

    Within one year of enactment, the FAA Administrator and the 
NPS Director would establish an advisory group to provide 
continuing advice and counsel with respect to the operation of 
commercial air tours over and near National Parks.
    The membership would consist of a balanced group of 
representatives of general aviation, commercial air tour 
operators, environmental concerns, Indian tribes, the FAA, and 
the NPS. The FAA and the NPS representatives would serve 
alternating one-year terms as chairman of the advisory group.
    Among its duties, the advisory group would provide 
recommendations on the designation of commonly accepted quiet 
aircraft technologies, which are to be given preferential 
treatment in ATMPs.
    Section 4 also provides for the compensation of the 
advisory group and the non-application of the Federal Advisory 
Committee Act to the group.

Section 805. Reports

            Overflight fee report
    Within 180 days of enactment, the FAA Administrator would 
report to Congress on the effects of overflight fees on the 
commercial air tour industry. The report would include the 
viability of a tax credit for operators equal to the amount of 
the fee charged by the NPS, as well as the financial effects 
that these proposed offsets are likely to have on FAA budgets 
and appropriations.
            Quiet aircraft technology report
    Not later than 2 years after the date of enactment, the FAA 
Administrator and the NPS Director are required to jointly 
transmit a report to Congress on the effectiveness of this Act 
in providing incentives for the development and use of quiet 
aircraft technology.

Section 806. Exemptions

    The section exempts the State of Alaska from this Act.

Section 807. Definitions

    This section sets forth definitions applicable to the Act.

                     TITLE IX.--TRUTH IN BUDGETING

Section 901. Short title

    This title may be cited as the ``Truth in Budgeting Act.''

Section 902. Budgetary treatment of Airport and Airway Trust Fund

    This section follows the language used to take the Social 
Security Trust Fund off-budget in Section 13301 of the Budget 
Enforcement Act of 1990. Specifically, the language provides 
that all receipts and disbursements of the Aviation Trust Fund 
shall not be counted as new budget authority, outlays, 
receipts, or deficit or surplus for purposes of: (1) the budget 
of the United States Government as submitted by the President, 
(2) the congressional budget (including allocations of budget 
authority and outlays provided therein), or (3) the Balanced 
Budget and Emergency Deficit Control Act of 1985 (Gramm-
Rudman).
    In addition, the Aviation Trust Fund shall be exempt from 
any general budget limitation imposed by statute on 
expenditures and net lending (budget outlays) of the U.S. 
government.

Section 903. Safeguards Against Deficit Spending Out of Airport and 
        Airway Trust Fund

    This section duplicates for the Aviation Trust Fund the 
automatic spending safeguards provided by the Byrd Rule in the 
Highway Trust Fund. Specifically, if the Secretary of 
Transportation, in consultation with the Secretary of the 
Treasury, determines that fund balances and expected receipts 
do not cover aviation authorizations, those authorizations are 
reduced on a pro-rata basis to cover the shortfall.
    While spending safeguards are already built into this trust 
fund, this provision provides the absolute assurance of a Byrd 
Rule type process to ensure that the trust fund is deficit 
proof and operates on a pay as you go basis. (Note: the Byrd 
Rule as it applies to the Highway Trust Fund is named after 
former Senator Harry Byrd of Virginia and is not the same Byrd 
Rule in the Senate relating to extraneous matters in 
reconciliation legislation.)

Section 904. Applicability

    This section states that this title shall apply beginning 
in fiscal year 2001.

           TITLE X.--ADJUSTMENT OF TRUST FUND AUTHORIZATIONS

Section 1001. Adjustment of Trust Fund Authorizations

    Subsection (a) amends adds a new Chapter 483 to Title 49 of 
the U.S. code, as follows:
    Section 48301 includes the following definitions:
          (1) Base Year--meaning the second fiscal year before 
        the fiscal year for which the calculation is being 
        made;
          (2) AIP Program--meaning programs made available 
        under section 48103;
          (3) Aviation Income--the tax receipts and interest 
        credited to the Aviation Trust Fund.
    Section 48302 set forth the following adjustments to align 
aviation authorizations with revenues.
    (a) Beginning with fiscal year 2003, if the actual aviation 
income (taxes plus interest) for the base year (for 2003, the 
base year would be 2001) is greater or less than the estimated 
aviation income for the base year, the FAA authorization levels 
increase or decrease proportionately.
    (b) This section defines the ratio by which the 
authorization for each account is adjusted as being dependent 
on that account's share of the total sum authorized for the 
FAA.
    (c) This paragraph requires that the President's Budget 
should report any increases or decreases in authorizations that 
would result from the calculation from subsection (a).
    Section 48303 makes adjustments to align AIP program 
funding with budget resources. Beginning in fiscal year 2001, 
if the FAA accounts are appropriated at levels lower than 
authorized, this subsection would increase the contract 
authority authorized for the AIP by the difference between the 
authorized and appropriated levels of the three other FAA 
accounts--Operations, F&E;, and RED. Any additional amount 
authorized for AIP under this section would remain subject to 
the obligation limitation, if any, included in the 
appropriations language.
    Section 48304 estimates the annual aviation income that is 
anticipated for the years 2001 through 2004, as follows:
          (1) $10,734,000,000 billion for fiscal year 2001;
          (2) $11,603,000,000 billion for fiscal year 2002;
          (3) $12,316,000,000 billion for fiscal year 2003; and
          (4) $13,062,000,000 billion for fiscal year 2004.

Section 1002. Budget estimates

    This section states that this title and title IX will not 
result in any direct spending outlays (pay as you go outlays) 
as calculated by the Director of the Office of Management and 
Budget under section 252(d) of the Balanced Budget and 
Emergency Deficit Control Act of 1985.

Section 1003. Sense of Congress on fully offsetting increased aviation 
        spending

    This section is a sense of the Congress that states the 
following:
          (1) Aviation users pay aviation taxes to be used for 
        aviation purposes.
          (2) Aviation users will pay $14 billion more in taxes 
        than the budget resolution provides using historic 
        funding patterns.
          (3) AIR 21 would allow the $14 billion mentioned 
        above to be used for aviation purposes, and
          (4) This funding will be fully offset by recapturing 
        the unspent aviation taxes and reducing the $778 
        billion tax cut.

                    Hearings and Legislative History

    On February 4, 10, and 11, 1999, the Aviation Subcommittee 
held hearings on the budgetary treatment of aviation programs 
and the need for additional investment in those programs. 
Testimony was given by the Administration and aviation users.

                        Committee Consideration

    On May 27, 1999, the Full Committee met in open session and 
favorably reported H.R. 1000.

                             Rollcall Votes

    Clause 3(b) of Rule XIII of the House of Representatives 
requires each committee report to include the total number of 
votes cast for and against on each roll call 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. 
There were no roll call votes.

                      Committee Oversight Findings

    With respect to the requirements of clause 3(c)(i) of Rule 
XIII of the Rules of the House of Representatives, the 
Committee's oversight findings and recommendations are 
reflected in this report.

                          Cost of Legislation

    Clause 3(d)(2) 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 402 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 XIII

    1. With respect to the requirement of clause 3(c)(2) of 
Rule XIII of the Rules of the House of Representatives, and 
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 3(c)(4) of 
Rule XIII 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. 1000.
    3. Pursuant to clause 3(d)(2)(A) of Rule XIII, the 
Committee is filing its own estimate of the costs that would be 
incurred in carrying out the bill. The CBO estimate was not 
timely submitted to the Committee before the filing of the 
report.

                  Cost Estimate Prepared by Committee

    Although we requested that the Congressional Budget Office 
(CBO) complete its cost estimate of H.R. 1000 by 6:00 p.m. 
today, it appears that the letter will not be ready to file 
with out report. Therefore, the Committee is forced to provide 
our understanding of how CBO will score our bill as reported 
out of the Committee.
    Attached is a summary table based on a preliminary CBO 
estimate of the outlays resulting from H.R. 1000. The bill 
provides $57.353 billion in budget authority and $52.835 
billion in outlays over the four-year period of 2001 through 
2004 for the Federal Aviation Administration's (FAA) programs. 
In addition, the bill provides an additional $50 million in 
mandatory budget authority above the baseline for the Essential 
Air Service program (within the Office of the Secretary of 
Transportation). When added together, the bill would allow 
$52.885 billion in outlays. We believe this funding is 
consistent with the agreement we reached with you during 
consideration of the concurrent resolution on the budget for FY 
2000 ($52.89 billion in outlays from 2001 through 2004).

                                      FAA FUNDING UNDER AIR 21 (AS AMENDED)
                                            [In millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                         Air 21--
                                                    --------------------------------------------------   4 Year
                                                     2000 \1\    2001      2002      2003      2004    total \2\
----------------------------------------------------------------------------------------------------------------
Operations:
    BA.............................................     5,567     6,450     6,886     7,357     7,860     28,553
    OL.............................................     5,596     6,358     6,838     7,305     7,805     28,306
Airport Improvement Program (AIP):
    BA.............................................     2,475     4,000     4,100     4,250     4,350     16,700
    OL.............................................     1,895     2,452     3,245     3,738     4,028     13,463
Facilities and Equipment (F&E;):
    BA.............................................     2,000     2,500     3,000     3,000     3,000     11,500
    OL.............................................     1,983     2,191     2,523     2,810     2,955     10,479
Research, Engineering, and Development: \3\
    BA.............................................       150       150       150       150       150        600
    OL.............................................       155       150       150       150       150        600
FAA total BA \4\...................................    10,192    13,100    14,136    14,757    15,360     57,353
                                                    ------------------------------------------------------------
    FAA total OL...................................     9,629    11,148    12,753    14,000    14,935     52,835
----------------------------------------------------------------------------------------------------------------
\1\ H.R. 1000 authorizes ``such sums'' for Ops and F&E; for FY2000, however, CBO will use the baseline for
  scoring purposes.
\2\ The total amount is for the 4 years 2001-2004 which captures the years affected by the budgetary treatment
  changes of AIR 21.
\3\ The RED account is not authorized under AIR 21, and therefore the baseline is assumed.
\4\ Note that the total includes the RED account, even though it is not authorized under AIR 21.

(Details may not add to total, due to rounding.)

                   Constitutional Authority Statement

    Pursuant to clause (3)(d)(1) of rule XIII of the Rules of 
the House of Representatives, committee reports on a bill or 
joint resolution of a public character shall include a 
statement citing the specific powers granted to the Congress in 
the Constitution to enact the measure. The Committee on 
Transportation and Infrastructure finds that Congress has the 
authority to enact this measure pursuant to its powers granted 
under article I, section 8 of the Constitution.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act. (Public Law 104-4.)

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                Applicability to the Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act. (Public Law 
104-1.)

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) 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 italics, 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.
101.  Purpose.
     * * * * * * *
113.  Air Traffic Control Oversight Board.

           *       *       *       *       *       *       *


Sec. 106. Federal Aviation Administration

  (a)  * * *

           *       *       *       *       *       *       *

  (f) Authority of the Secretary and the Administrator.--
          (1)  * * *

           *       *       *       *       *       *       *

          (3) Regulations.--
                  (A)  * * *
                  (B) Approval of secretary of 
                transportation.--(i) The Administrator may not 
                issue a proposed regulation or final regulation 
                that is likely to result in the expenditure by 
                State, local, and tribal governments in the 
                aggregate, or by the private sector, of 
                [$100,000,000] $250,000,000 or more (adjusted 
                annually for inflation beginning with the year 
                following the date of the enactment of the [Air 
                Traffic Management System Performance 
                Improvement Act of 1996] Aviation Investment 
                and Reform Act for the 21st Century) in any 
                year, or any regulation which is significant, 
                unless the Secretary of Transportation approves 
                the issuance of the regulation in advance. For 
                purposes of this paragraph, a regulation is 
                significant if the Administrator, in 
                consultation with the Secretary (as 
                appropriate), determines that the regulation is 
                likely to--
                          (I) have an annual effect on the 
                        economy of [$100,000,000] $250,000,000 
                        or more or adversely affect in a 
                        substantial and material way the 
                        economy, a sector of the economy, 
                        productivity, competition, jobs, the 
                        environment, public health or safety, 
                        or State, local, or tribal governments 
                        or communities; or
                          [(II) create a serious inconsistency 
                        or otherwise interfere with an action 
                        taken or planned by another agency;
                          [(III) materially alter the budgetary 
                        impact of entitlements, grants, user 
                        fees, or loan programs or the rights 
                        and obligations of recipients thereof; 
                        or
                          [(IV) raise novel legal or policy 
                        issues arising out of legal mandates.]
                          (II) raise novel or significant legal 
                        or policy issues arising out of legal 
                        mandates that may substantially and 
                        materially affect other transportation 
                        modes.

           *       *       *       *       *       *       *

  (g) Duties and Powers of Administrator.--(1) Except as 
provided in paragraph (2) of this subsection, the Administrator 
shall carry out--
          (A) duties and powers of the Secretary of 
        Transportation under subsection (f) of this section 
        related to aviation safety (except those related to 
        transportation, packaging, marking, or description of 
        hazardous material) and stated in sections 308(b), 
        1132(c) and (d), 40101(c), 40103(b), 40106(a), 40108, 
        40109(b), [40113(a), (c), and (d), 40114(a), 40119, 
        44501(a) and (c), 44502(a)(1), (b), and (c), 44504, 
        44505, 44507, 44508, 44511-44513, 44701-44716, 
        44718(c), 44721(a), 44901, 44902, 44903(a)-(c) and (e), 
        44906, 44912, 44935-44937, and 44938(a) and (b), 
        chapter 451, sections 45302-45304,] 40113(a), 40113(c), 
        40113(d), 40113(e), 40114(a), and 40119, chapter 445 
        (except sections 44501(b), 44502(a)(2), 44502(a)(3), 
        44502(a)(4), 44503, 44506, 44509, 44510, 44514, and 
        44515), chapter 447 (except sections 44717, 44718(a), 
        44718(b), 44719, 44720, 44721(b), 44722, and 44723), 
        chapter 449 (except sections 44903(d), 44904, 44905, 
        44907-44911, 44913, 44915, and 44931-44934), chapter 
        451, chapter 453, sections 46104, 46301(d) and (h)(2), 
        46303(c), 46304-46308, 46310, 46311, and 46313-46316, 
        chapter 465, and sections 47504(b)(related to flight 
        procedures), 47508(a), and 48107 of this title; and
          (B)  * * *

           *       *       *       *       *       *       *

  (k) Authorization of Appropriations for Operations.--
          (1) In general.--There is authorized to be 
        appropriated to the Secretary of Transportation for 
        operations of [the Administration $5,158,000,000 for 
        fiscal year 1997 and $5,344,000,000 for fiscal year 
        1998.] the Administration--
                  (A) such sums as may be necessary for fiscal 
                year 2000;
                  (B) $6,450,000,000 for fiscal year 2001;
                  (C) $6,886,000,000 for fiscal year 2002;
                  (D) $7,357,000,000 for fiscal year 2003; and
                  (E) $7,860,000,000 for fiscal year 2004.
          (2) Authorized expenditures.--Of the amounts 
        appropriated under paragraph (1) for fiscal years 2001 
        through 2004--
                  (A) $450,000 per fiscal year may be used for 
                wildlife hazard mitigation measures and 
                management of the wildlife strike database of 
                the Federal Aviation Administration;
                  (B) such sums as may be necessary may be used 
                to fund an office within the Federal Aviation 
                Administration dedicated to supporting 
                infrastructure systems development for both 
                general aviation and the vertical flight 
                industry;
                  (C) such sums as may be necessary may be used 
                to revise existing terminal and en route 
                procedures and instrument flight rules to 
                facilitate the takeoff, flight, and landing of 
                tiltrotor aircraft and to improve the national 
                airspace system by separating such aircraft 
                from congested flight paths of fixed-wing 
                aircraft;
                  (D) such sums as may be necessary may be used 
                to establish helicopter approach procedures 
                using current technologies (such as the Global 
                Positioning System) to support all-weather, 
                emergency medical service for trauma patients;
                  (E) $3,000,000 per fiscal year may be used to 
                implement the 1998 airport surface operations 
                safety action plan of the Federal Aviation 
                Administration;
                  (F) $2,000,000 per fiscal year may be used to 
                support a university consortium established to 
                provide an air safety and security management 
                certificate program, working cooperatively with 
                United States air carriers; except that funds 
                under this subparagraph--
                          (i) may not be used for the 
                        construction of a building or other 
                        facility; and
                          (ii) may only be awarded on the basis 
                        of open competition; and
                  (G) such sums as may be necessary may be used 
                to develop or improve training programs 
                (including model training programs and 
                curriculum) for security screeners at airports.

           *       *       *       *       *       *       *

  (p) Management Advisory Council.--
          (1)  * * *
          (2) Membership.--The Council shall consist of 15 
        members, who shall consist of--
                  (A)  * * *

           *       *       *       *       *       *       *

                  [(C) 13 members representing aviation 
                interests, appointed by the President by and 
                with the advice and consent of the Senate.]
                  (C) 13 members representing aviation 
                interests, appointed by--
                          (i) in the case of initial 
                        appointments to the Council, the 
                        President by and with the advice and 
                        consent of the Senate; and
                          (ii) in the case of subsequent 
                        appointments to the Council, the 
                        Secretary of Transportation.

           *       *       *       *       *       *       *

          (6) Administrative matters.--
                  (A) Terms of members.--(i) Except as provided 
                in subparagraph (B), members of the Council 
                appointed [by the President] under paragraph 
                (2)(C) shall be appointed for a term of 3 
                years.

           *       *       *       *       *       *       *

  (r) Chief Operating Officer.--
          (1) In general.--
                  (A) Appointment.--There shall be a Chief 
                Operating Officer for the air traffic control 
                system to be appointed by the Administrator, 
                with approval of the Air Traffic Control 
                Oversight Board established by section 113. The 
                Chief Operating Officer shall report directly 
                to the Administrator and shall be subject to 
                the authority of the Administrator.
                  (B) Qualifications.--The Chief Operating 
                Officer shall have a demonstrated ability in 
                management and knowledge of or experience in 
                aviation.
                  (C) Term.--The Chief Operating Officer shall 
                be appointed for a term of 5 years.
                  (D) Removal.--The Chief Operating Officer 
                shall serve at the pleasure of the 
                Administrator, except that the Administrator 
                shall make every effort to ensure stability and 
                continuity in the leadership of the air traffic 
                control system.
                  (E) Vacancy.--Any individual appointed to 
                fill a vacancy in the position of Chief 
                Operating Officer occurring before the 
                expiration of the term for which the 
                individual's predecessor was appointed shall be 
                appointed for the remainder of that term.
          (2) Annual performance agreement.--The Administrator 
        and the Chief Operating Officer, in consultation with 
        the Air Traffic Control Oversight Board, shall enter 
        into an annual performance agreement that sets forth 
        measurable organization and individual goals for the 
        Chief Operating Officer in key operational areas. The 
        agreement shall be subject to review and renegotiation 
        on an annual basis.
          (3) Annual performance report.--The Chief Operating 
        Officer shall prepare and submit to the Secretary of 
        Transportation and Congress an annual management report 
        containing such information as may be prescribed by the 
        Secretary.

           *       *       *       *       *       *       *


Sec. 113. Air Traffic Control Oversight Board

  (a) Establishment.--There is established within the 
Department of Transportation an ``Air Traffic Control Oversight 
Board'' (in this section referred to as the ``Oversight 
Board'').
  (b) Membership.--
          (1) Composition.--The Oversight Board shall be 
        composed of 9 members, as follows:
                  (A) Six members shall be individuals who are 
                not otherwise Federal officers or employees and 
                who are appointed by the President, by and with 
                the advice and consent of the Senate.
                  (B) One member shall be the Secretary of 
                Transportation or, if the Secretary so 
                designates, the Deputy Secretary of 
                Transportation.
                  (C) One member shall be the Administrator of 
                the Federal Aviation Administration.
                  (D) One member shall be an individual who is 
                appointed by the President, by and with the 
                advice and consent of the Senate, from among 
                individuals who are the leaders of their 
                respective unions of air traffic control system 
                employees.
          (2) Qualifications and terms.--
                  (A) Qualifications.--Members of the Oversight 
                Board described in paragraph (1)(A) shall--
                          (i) have a fiduciary responsibility 
                        to represent the public interest;
                          (ii) be citizens of the United 
                        States; and
                          (iii) be appointed without regard to 
                        political affiliation and solely on the 
                        basis of their professional experience 
                        and expertise in 1 or more of the 
                        following areas:
                                  (I) Management of large 
                                service organizations.
                                  (II) Customer service.
                                  (III) Management of large 
                                procurements.
                                  (IV) Information and 
                                communications technology.
                                  (V) Organizational 
                                development.
                                  (VI) Labor relations.
                At least 3 members of the Oversight Board 
                appointed under paragraph (1)(A) should have 
                knowledge of, or a background in, aviation. At 
                least one of such members should have a 
                background in managing large organizations 
                successfully. In the aggregate, such members 
                should collectively bring to bear expertise in 
                all of the areas described in subclauses (I) 
                through (VI) of clause (iii).
                  (B) Prohibitions.--No member of the Oversight 
                Board described in paragraph (1)(A) may--
                          (i) have a pecuniary interest in, or 
                        own stock in or bonds of, an aviation 
                        or aeronautical enterprise;
                          (ii) engage in another business 
                        related to aviation or aeronautics; or
                          (iii) be a member of any organization 
                        that engages, as a substantial part of 
                        its activities, in activities to 
                        influence aviation-related legislation.
                  (C) Terms for air traffic control 
                representatives.--A member appointed under 
                paragraph (1)(D) shall be appointed for a term 
                of 3 years, except that the term of such 
                individual shall end whenever the individual no 
                longer meets the requirements of paragraph 
                (1)(D).
                  (D) Terms for nonfederal officers or 
                employees.--A member appointed under paragraph 
                (1)(A) shall be appointed for a term of 5 
                years, except that of the members first 
                appointed under paragraph (1)(A)--
                          (i) 2 members shall be appointed for 
                        a term of 3 years;
                          (ii) 2 members shall be appointed for 
                        a term of 4 years; and
                          (iii) 2 members shall be appointed 
                        for a term of 5 years.
                  (E) Reappointment.--An individual may not be 
                appointed under paragraph (1)(A) to more than 
                two 5-year terms on the Oversight Board.
                  (F) Vacancy.--Any vacancy on the Oversight 
                Board shall be filled in the same manner as the 
                original appointment. 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 for the 
                remainder of that term.
          (3) Ethical considerations.--
                  (A) Financial disclosure.--During the entire 
                period that an individual appointed under 
                subparagraph (A) or (D) of paragraph (1) is a 
                member of the Oversight Board, such individual 
                shall be treated as serving as an officer or 
                employee referred to in section 101(f) of the 
                Ethics in Government Act of 1978 for purposes 
                of title I of such Act, except that section 
                101(d) of such Act shall apply without regard 
                to the number of days of service in the 
                position.
                  (B) Restrictions on post-employment.--For 
                purposes of section 207(c) of title 18, an 
                individual appointed under subparagraph (A) or 
                (D) of paragraph (1) shall be treated as an 
                employee referred to in section 207(c)(2)(A)(i) 
                of such title during the entire period the 
                individual is a member of the Board, except 
                that subsections (c)(2)(B) and (f) of section 
                207 of such title shall not apply.
                  (C) Waiver.--At the time the President 
                nominates an individual for appointment as a 
                member of the Oversight Board under paragraph 
                (1)(D), the President may waive for the term of 
                the member any appropriate provision of chapter 
                11 of title 18, to the extent such waiver is 
                necessary to allow the member to participate in 
                the decisions of the Board while continuing to 
                serve as a full-time Federal employee or a 
                representative of employees. Any such waiver 
                shall not be effective unless a written intent 
                of waiver to exempt such member (and actual 
                waiver language) is submitted to the Senate 
                with the nomination of such member.
          (4) Quorum.--Five members of the Oversight Board 
        shall constitute a quorum. A majority of members 
        present and voting shall be required for the Oversight 
        Board to take action.
          (5) Removal.--Any member of the Oversight Board 
        appointed under subparagraph (A) or (D) of paragraph 
        (1) may be removed for cause by the President.
          (6) Claims.--
                  (A) In general.--A member of the Oversight 
                Board appointed under subparagraph (A) or (D) 
                of paragraph (1) shall have no personal 
                liability under Federal law with respect to any 
                claim arising out of or resulting from an act 
                or omission by such member within the scope of 
                service as a member of the Oversight Board.
                  (B) Effect on other law.--This paragraph 
                shall not be construed--
                          (i) to affect any other immunity or 
                        protection that may be available to a 
                        member of the Oversight Board under 
                        applicable law with respect to such 
                        transactions;
                          (ii) to affect any other right or 
                        remedy against the United States under 
                        applicable law; or
                          (iii) to limit or alter in any way 
                        the immunities that are available under 
                        applicable law for Federal officers and 
                        employees.
  (c) General Responsibilities.--
          (1) Oversight.--The Oversight Board shall oversee the 
        Federal Aviation Administration in its administration, 
        management, conduct, direction, and supervision of the 
        air traffic control system.
          (2) Confidentiality.--The Oversight Board shall 
        ensure that appropriate confidentiality is maintained 
        in the exercise of its duties.
  (d) Specific Responsibilities.--The Oversight Board shall 
have the following specific responsibilities:
          (1) Strategic plans.--To review, approve, and monitor 
        achievements under a strategic plan of the Federal 
        Aviation Administration for the air traffic control 
        system, including the establishment of--
                  (A) a mission and objectives;
                  (B) standards of performance relative to such 
                mission and objectives, including safety, 
                efficiency, and productivity; and
                  (C) annual and long-range strategic plans.
          (2) Modernization and improvement.--To review and 
        approve--
                  (A) methods of the Federal Aviation 
                Administration to accelerate air traffic 
                control modernization and improvements in 
                aviation safety related to air traffic control; 
                and
                  (B) procurements of air traffic control 
                equipment by the Federal Aviation 
                Administration in excess of $100,000,000.
          (3) Operational plans.--To review the operational 
        functions of the Federal Aviation Administration, 
        including--
                  (A) plans for modernization of the air 
                traffic control system;
                  (B) plans for increasing productivity or 
                implementing cost-saving measures; and
                  (C) plans for training and education.
          (4) Management.--To--
                  (A) review and approve the Administrator's 
                appointment of a Chief Operating Officer under 
                section 106(r);
                  (B) review the Administrator's selection, 
                evaluation, and compensation of senior 
                executives of the Federal Aviation 
                Administration who have program management 
                responsibility over significant functions of 
                the air traffic control system;
                  (C) review and approve the Administrator's 
                plans for any major reorganization of the 
                Federal Aviation Administration that would 
                impact on the management of the air traffic 
                control system;
                  (D) review and approve the Administrator's 
                cost accounting and financial management 
                structure and technologies to help ensure 
                efficient and cost-effective air traffic 
                control operation; and
                  (E) review the performance and cooperation of 
                managers responsible for major acquisition 
                projects, including the ability of the managers 
                to meet schedule and budget targets.
          (5) Budget.--To--
                  (A) review and approve the budget request of 
                the Federal Aviation Administration related to 
                the air traffic control system prepared by the 
                Administrator;
                  (B) submit such budget request to the 
                Secretary of Transportation; and
                  (C) ensure that the budget request supports 
                the annual and long-range strategic plans.
The Secretary shall submit the budget request referred to in 
paragraph (5)(B) for any fiscal year to the President who shall 
submit such request, without revision, to the Committees on 
Transportation and Infrastructure and Appropriations of the 
House of Representatives and the Committees on Commerce, 
Science, and Transportation and Appropriations of the Senate, 
together with the President's annual budget request for the 
Federal Aviation Administration for such fiscal year.
  (e) Reporting of Overturning of Board Decisions.--If the 
Secretary or Administrator overturns a decision of the 
Oversight Board, the Secretary or Administrator, as appropriate 
shall report such action to the President, the Committee on 
Transportation and Infrastructure of the House of 
Representatives, and the Committee on Commerce, Science, and 
Transportation of the Senate.
  (f) Board Personnel Matters.--
          (1) Compensation of members.--
                  (A) In general.--Each member of the Oversight 
                Board who--
                          (i) appointed under subsection 
                        (b)(1)(A); or
                          (ii) appointed under subsection 
                        (b)(1)(D) and is not otherwise a 
                        Federal officer or employee,
                shall be compensated at a rate of $30,000 per 
                year. All other members shall serve without 
                compensation for such service.
                  (B) Chairperson.--Notwithstanding 
                subparagraph (A), the chairperson of the 
                Oversight Board shall be compensated at a rate 
                of $50,000 per year.
          (2) Travel expenses.--
                  (A) In general.--The members of the Oversight 
                Board shall be allowed travel expenses, 
                including per diem in lieu of subsistence, at 
                rates authorized for employees of agencies 
                under subchapter I of chapter 57 of title 5, to 
                attend meetings of the Oversight Board and, 
                with the advance approval of the chairperson of 
                the Oversight Board, while otherwise away from 
                their homes or regular places of business for 
                purposes of duties as a member of the Oversight 
                Board.
                  (B) Report.--The Oversight Board shall 
                include in its annual report under subsection 
                (g)(3)(A) information with respect to the 
                travel expenses allowed for members of the 
                Oversight Board under this paragraph.
          (3) Staff.--
                  (A) In general.--The chairperson of the 
                Oversight Board may appoint and terminate any 
                personnel that may be necessary to enable the 
                Board to perform its duties.
                  (B) Detail of government employees.--Upon 
                request of the chairperson of the Oversight 
                Board, a Federal agency shall detail a United 
                States Government employee to the Oversight 
                Board without reimbursement. Such detail shall 
                be without interruption or loss of civil 
                service status or privilege.
          (4) Procurement of temporary and intermittent 
        services.--The chairperson of the Oversight Board may 
        procure temporary and intermittent services under 
        section 3109(b) of title 5.
  (g) Administrative Matters.--
          (1) Chair.--
                  (A) Term.--The members of the Oversight Board 
                shall elect for a 2-year term a chairperson 
                from among the members appointed under 
                subsection (b)(1)(A).
                  (B) Powers.--Except as otherwise provided by 
                a majority vote of the Oversight Board, the 
                powers of the chairperson shall include--
                          (i) establishing committees;
                          (ii) setting meeting places and 
                        times;
                          (iii) establishing meeting agendas; 
                        and
                          (iv) developing rules for the conduct 
                        of business.
          (2) Meetings.--The Oversight Board shall meet at 
        least quarterly and at such other times as the 
        chairperson determines appropriate.
          (3) Reports.--
                  (A) Annual.--The Oversight Board shall each 
                year report with respect to the conduct of its 
                responsibilities under this title to the 
                President, the Committee on Transportation and 
                Infrastructure of the House of Representatives, 
                and the Committee on Commerce, Science, and 
                Transportation of the Senate.
                  (B) Additional report.--Upon a determination 
                by the Oversight Board under subsection (c)(1) 
                that the organization and operation of the 
                Federal Aviation Administration's air traffic 
                control system are not allowing the Federal 
                Aviation Administration to carry out its 
                mission, the Oversight Board shall report such 
                determination to the Committee on 
                Transportation and Infrastructure of the House 
                of Representatives and the Committee on 
                Commerce, Science, and Transportation of the 
                Senate.
                  (C) Comptroller general's report.--Not later 
                than April 30, 2004, the Comptroller General of 
                the United States shall transmit 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 on the 
                success of the Oversight Board in improving the 
                performance of the air traffic control 
                system.''.

           *       *       *       *       *       *       *


                 SUBTITLE II--OTHER GOVERNMENT AGENCIES

           *       *       *       *       *       *       *


           CHAPTER 11--NATIONAL TRANSPORTATION SAFETY BOARD

           *       *       *       *       *       *       *


                       SUBCHAPTER III--AUTHORITY

Sec. 1136. Assistance to families of passengers involved in aircraft 
                    accidents

  (a)  * * *

           *       *       *       *       *       *       *

  (g) Prohibited Actions.--
          (1)  * * *
          (2) Unsolicited communications.--In the event of an 
        accident involving an air carrier providing interstate 
        or foreign air [transportation,] transportation and in 
        the event of an accident involving a foreign air 
        carrier that occurs within the United States, no 
        unsolicited communication concerning a potential action 
        for personal injury or wrongful death may be made by an 
        attorney (including any associate, agent, employee, or 
        other representative of an attorney) or any potential 
        party to the litigation to an individual injured in the 
        accident, or to a relative of an individual involved in 
        the accident, before the [30th day] 45th day following 
        the date of the accident.
          (3) Prohibition on actions to prevent mental health 
        and counseling services.--No State or political 
        subdivision may prevent the employees, agents, or 
        volunteers of an organization designated for an 
        accident under subsection (a)(2) from providing mental 
        health and counseling services under subsection (c)(1) 
        in the 30-day period beginning on the date of the 
        accident. The director of family support services 
        designated for the accident under subsection (a)(1) may 
        extend such period for not to exceed an additional 30 
        days if the director determines that the extension is 
        necessary to meet the needs of the families and if 
        State and local authorities are notified of the 
        determination.
  (h) Definitions.--In this section, the following definitions 
apply:
          (1)  * * *
          [(2) Passenger.--The term ``passenger'' includes an 
        employee of an air carrier aboard an aircraft.]
          (2) Passenger.--The term ``passenger'' includes--
                  (A) an employee of an air carrier or foreign 
                air carrier aboard an aircraft; and
                  (B) any other person aboard the aircraft 
                without regard to whether the person paid for 
                the transportation, occupied a seat, or held a 
                reservation for the flight.
  (i) Limitation on Statutory Construction.--Nothing in this 
section may be construed as limiting the actions that an air 
carrier may take, or the obligations that an air carrier may 
have, in providing assistance to the families of passengers 
involved in an aircraft accident.

           *       *       *       *       *       *       *


                SUBCHAPTER IV--ENFORCEMENT AND PENALTIES

Sec. 1151. Aviation enforcement

  (a) Civil Actions by Board.--The National Transportation 
Safety Board may bring a civil action in a district court of 
the United States against a person to enforce section 1132, 
1134(b) or (f)(1) (related to an aircraft accident), 
1136(g)(2), or 1155(a) of this title or a regulation prescribed 
or order issued under any of those sections. An action under 
this subsection may be brought in the judicial district in 
which the person does business or the violation occurred.
  (b) Civil Actions by Attorney General.--On request of the 
Board, the Attorney General may bring a civil action in an 
appropriate court--
          (1) to enforce section 1132, 1134(b) or 
        (f)(1)(related to an aircraft accident), 1136(g)(2), or 
        1155(a) of this title or a regulation prescribed or 
        order issued under any of those sections; and
          (2)  * * *
  (c) Participation of Board.--On request of the Attorney 
General, the Board may participate in a civil action to enforce 
section 1132, 1134(b) or (f)(1)(related to an aircraft 
accident), 1136(g)(2), or 1155(a) of this title.

           *       *       *       *       *       *       *


                    SUBTITLE VII--AVIATION PROGRAMS

           *       *       *       *       *       *       *


                            PART C--FINANCING

      AIRPORT AND AIRWAY TRUST FUND AUTHORIZATIONS.................48101
     * * * * * * *
      ADJUSTMENT OF TRUST FUND AUTHORIZATIONS......................48301

                    PART A--AIR COMMERCE AND SAFETY

                           SUBPART I--GENERAL

                    CHAPTER 401--GENERAL PROVISIONS

Sec.
40101.  Policy.
     * * * * * * *
40125. Qualifications for public aircraft status.
40126. Overflights of national parks.

Sec. 40101. Policy

  (a) Economic Regulation.--In carrying out subpart II of this 
part and those provisions of subpart IV applicable in carrying 
out subpart II, the Secretary of Transportation shall consider 
the following matters, among others, as being in the public 
interest and consistent with public convenience and necessity:
          (1) * * *

           *       *       *       *       *       *       *

          (16) ensuring that consumers in all regions of the 
        United States, including those in small communities and 
        rural and remote areas, have access to affordable, 
        regularly scheduled air service.

           *       *       *       *       *       *       *


Sec. 40102. Definitions

  (a) General Definitions.--In this part--
          (1)  * * *

           *       *       *       *       *       *       *

          (5) ``air traffic control system'' means the 
        combination of elements used to safely and efficiently 
        monitor, direct, control, and guide aircraft in the 
        United States and United States-assigned airspace, 
        including--
                  (A) allocated electromagnetic spectrum and 
                physical, real, personal, and intellectual 
                property assets making up facilities, 
                equipment, and systems employed to detect, 
                track, and guide aircraft movement;
                  (B) laws, regulations, orders, directives, 
                agreements, and licenses;
                  (C) published procedures that explain 
                required actions, activities, and techniques 
                used to ensure adequate aircraft separation; 
                and
                  (D) trained personnel with specific technical 
                capabilities to satisfy the operational, 
                engineering, management, and planning 
                requirements for air traffic control.
          [(5)] (6) ``air transportation'' means foreign air 
        transportation, interstate air transportation, or the 
        transportation of mail by aircraft.
          [(6)] (7) ``aircraft'' means any contrivance 
        invented, used, or designed to navigate, or fly in, the 
        air.
          [(7)] (8) ``aircraft engine'' means an engine used, 
        or intended to be used, to propel an aircraft, 
        including a part, appurtenance, and accessory of the 
        engine, except a propeller.
          [(8)] (9) ``airman'' means an individual--
                  (A) * * *

           *       *       *       *       *       *       *

          [(9)] (10) ``airport'' means a landing area used 
        regularly by aircraft for receiving or discharging 
        passengers or cargo.
          [(10)] (11) ``all-cargo air transportation'' means 
        the transportation by aircraft in interstate air 
        transportation of only property or only mail, or both.
          [(11)] (12) ``appliance'' means an instrument, 
        equipment, apparatus, a part, an appurtenance, or an 
        accessory used, capable of being used, or intended to 
        be used, in operating or controlling aircraft in 
        flight, including a parachute, communication equipment, 
        and another mechanism installed in or attached to 
        aircraft during flight, and not a part of an aircraft, 
        aircraft engine, or propeller.
          [(12)] (13) ``cargo'' means property, mail, or both.
          [(13)] (14) ``charter air carrier'' means an air 
        carrier holding a certificate of public convenience and 
        necessity that authorizes it to provide charter air 
        transportation.
          [(14)] (15) ``charter air transportation'' means 
        charter trips in air transportation authorized under 
        this part.
          [(15)] (16) ``citizen of the United States'' means--
                  (A) * * *

           *       *       *       *       *       *       *

          [(16)] (17) ``civil aircraft'' means an aircraft 
        except a public aircraft.
          [(17)] (18) ``civil aircraft of the United States'' 
        means an aircraft registered under chapter 441 of this 
        title.
          [(18)] (19) ``conditional sales contract'' means a 
        contract--
                  (A) * * *

           *       *       *       *       *       *       *

          [(19)] (20) ``conveyance'' means an instrument, 
        including a conditional sales contract, affecting title 
        to, or an interest in, property.
          [(20)] (21) ``Federal airway'' means a part of the 
        navigable airspace that the Administrator designates as 
        a Federal airway.
          [(21)] (22) ``foreign air carrier'' means a person, 
        not a citizen of the United States, undertaking by any 
        means, directly or indirectly, to provide foreign air 
        transportation.
          [(22)] (23) ``foreign air commerce'' means the 
        transportation of passengers or property by aircraft 
        for compensation, the transportation of mail by 
        aircraft, or the operation of aircraft in furthering a 
        business or vocation, between a place in the United 
        States and a place outside the United States when any 
        part of the transportation or operation is by aircraft.
          [(23)] (24) ``foreign air transportation'' means the 
        transportation of passengers or property by aircraft as 
        a common carrier for compensation, or the 
        transportation of mail by aircraft, between a place in 
        the United States and a place outside the United States 
        when any part of the transportation is by aircraft.
          [(24)] (25) ``interstate air commerce'' means the 
        transportation of passengers or property by aircraft 
        for compensation, the transportation of mail by 
        aircraft, or the operation of aircraft in furthering a 
        business or vocation--
                  (A) * * *

           *       *       *       *       *       *       *

          [(25)] (26) ``interstate air transportation'' means 
        the transportation of passengers or property by 
        aircraft as a common carrier for compensation, or the 
        transportation of mail by aircraft--
                  (A) * * *

           *       *       *       *       *       *       *

          [(26)] (27) ``intrastate air carrier'' means a 
        citizen of the United States undertaking by any means 
        to provide only intrastate air transportation.
          [(27)] (28) ``intrastate air transportation'' means 
        the transportation by a common carrier of passengers or 
        property for compensation, entirely in the same State, 
        by turbojet-powered aircraft capable of carrying at 
        least 30 passengers.
          [(28)] (29) ``landing area'' means a place on land or 
        water, including an airport or intermediate landing 
        field, used, or intended to be used, for the takeoff 
        and landing of aircraft, even when facilities are not 
        provided for sheltering, servicing, or repairing 
        aircraft, or for receiving or discharging passengers or 
        cargo.
          [(29)] (30) ``mail'' means United States mail and 
        foreign transit mail.
          [(30)] (31) ``navigable airspace'' means airspace 
        above the minimum altitudes of flight prescribed by 
        regulations under this subpart and subpart III of this 
        part, including airspace needed to ensure safety in the 
        takeoff and landing of aircraft.
          [(31)] (32) ``navigate aircraft'' and ``navigation of 
        aircraft'' include piloting aircraft.
          [(32)] (33) ``operate aircraft'' and ``operation of 
        aircraft'' mean using aircraft for the purposes of air 
        navigation, including--
                  (A) * * *

           *       *       *       *       *       *       *

          [(33)] (34) ``person'', in addition to its meaning 
        under section 1 of title 1, includes a governmental 
        authority and a trustee, receiver, assignee, and other 
        similar representative.
          [(34)] (35) ``predatory'' means a practice that 
        violates the antitrust laws as defined in the first 
        section of the Clayton Act (15 U.S.C. 12).
          [(35)] (36) ``price'' means a rate, fare, or charge.
          [(36)] (37) ``propeller'' includes a part, 
        appurtenance, and accessory of a propeller.
          [(37) ``public aircraft''--
                  [(A) means an aircraft--
                          [(i) used only for the United States 
                        Government;
                          [(ii) owned by the United States 
                        Government and operated by any person 
                        for purposes related to crew training, 
                        equipment development, or 
                        demonstration; or
                          [(iii) owned and operated (except for 
                        commercial purposes), or exclusively 
                        leased for at least 90 continuous days, 
                        by a government (except the United 
                        States Government), including a State, 
                        the District of Columbia, or a territory 
                        or possession of the United States, or 
                        political subdivision of that government; but
                  [(B) does not include a government-owned 
                aircraft--
                          [(i) transporting property for 
                        commercial purposes; or
                          [(ii) transporting passengers other 
                        than--
                                  [(I) transporting (for other 
                                than commercial purposes) 
                                crewmembers or other persons 
                                aboard the aircraft whose 
                                presence is required to 
                                perform, or is associated with 
                                the performance of, a 
                                governmental function such as 
                                firefighting, search and 
                                rescue, law enforcement, 
                                aeronautical research, or 
                                biological or geological 
                                resource management; or
                                  [(II) transporting (for other 
                                than commercial purposes) 
                                persons aboard the aircraft if 
                                the aircraft is operated by the 
                                Armed Forces or an intelligence 
                                agency of the United States.
                An aircraft described in the preceding sentence 
                shall, notwithstanding any limitation relating 
                to use of the aircraft for commercial purposes, 
                be considered to be a public aircraft for the 
                purposes of this part without regard to whether 
                the aircraft is operated by a unit of 
                government on behalf of another unit of 
                government, pursuant to a cost reimbursement 
                agreement between such units of government, if 
                the unit of government on whose behalf the 
                operation is conducted certifies to the 
                Administrator of the Federal Aviation 
                Administration that the operation was necessary 
                to respond to a significant and imminent threat 
                to life or property (including natural 
                resources) and that no service by a private 
                operator was reasonably available to meet the 
                threat.]
          (38) ``public aircraft'' means an aircraft--
                  (A) used only for the United States 
                Government, and operated under the conditions 
                specified by section 40125(b) if owned by the 
                Government;
                  (B) owned by the United States Government, 
                operated by any person for purposes related to 
                crew training, equipment development, or 
                demonstration, and operated under the 
                conditions specified by section 40125(b);
                  (C) owned and operated by the government of a 
                State, the District of Columbia, a territory or 
                possession of the United States, or a political 
                subdivision of one of these governments, under 
                the conditions specified by section 40125(c); 
                or
                  (D) exclusively leased for at least 90 
                continuous days by the government of a State, 
                the District of Columbia, a territory or 
                possession of the United States, or a political 
                subdivision of one of these governments, under 
                the conditions specified by section 40125(c).
          [(38)] (39) ``spare part'' means an accessory, 
        appurtenance, or part of an aircraft (except an 
        aircraft engine or propeller), aircraft engine (except 
        a propeller), propeller, or appliance, that is to be 
        installed at a later time in an aircraft, aircraft 
        engine, propeller, or appliance.
          [(39)] (40) ``State authority'' means an authority of 
        a State designated under State law--
                  (A) to receive notice required to be given a 
                State authority under subpart II of this part; 
                or
                  (B) as the representative of the State before 
                the Secretary of Transportation in any matter 
                about which the Secretary is required to 
                consult with or consider the views of a State 
                authority under subpart II of this part.
          [(40)] (41) ``ticket agent'' means a person (except 
        an air carrier, a foreign air carrier, or an employee 
        of an air carrier or foreign air carrier) that as a 
        principal or agent sells, offers for sale, negotiates 
        for, or holds itself out as selling, providing, or 
        arranging for, air transportation.
          [(41)] (42) ``United States'' means the States of the 
        United States, the District of Columbia, and the 
        territories and possessions of the United States, 
        including the territorial sea and the overlying 
        airspace.

           *       *       *       *       *       *       *


Sec. 40110. General procurement authority

  (a)  * * *

           *       *       *       *       *       *       *

  (d) Prohibition on Release of Offeror Proposals.--
          (1) General rule.--Except as provided in paragraph 
        (2), a proposal in the possession or control of the 
        Administrator may not be made available to any person 
        under section 552 of title 5.
          (2) Exception.--Paragraph (1) shall not apply to any 
        portion of a proposal of an offeror the disclosure of 
        which is authorized by the Administrator pursuant to 
        procedures published in the Federal Register. The 
        Administrator shall provide an opportunity for public 
        comment on the procedures for a period of not less than 
        30 days beginning on the date of such publication in 
        order to receive and consider the views of all 
        interested parties on the procedures. The procedures 
        shall not take effect before the 60th day following the 
        date of such publication.
          (3) Proposal defined.--In this subsection, the term 
        ``proposal'' means information contained in or 
        originating from any proposal, including a technical, 
        management, or cost proposal, submitted by an offeror 
        in response to the requirements of a solicitation for a 
        competitive proposal.

Sec. 40111. Multiyear procurement contracts for services and related 
                    items

  (a) * * *
  (b) Telecommunications Services.--Notwithstanding section 
1341(a)(1)(B) of title 31, the Administrator may make a 
contract of not more than 10 years for telecommunication 
services that are provided through the use of a satellite if 
the Administrator finds that the longer contract period would 
be cost beneficial.
  [(b)] (c) Required Findings.--The Administrator may make a 
contract under this section only if the Administrator finds 
that--
          (1) * * *

           *       *       *       *       *       *       *

  [(c)] (d) Considerations.--When making a contract under this 
section, the Administrator shall be guided by the following:
          (1) * * *

           *       *       *       *       *       *       *

  [(d)] (e) Ending Contracts.--A contract made under this 
section shall be ended if amounts are not made available to 
continue the contract into a subsequent fiscal year. The cost 
of ending the contract may be paid from--
          (1) * * *

           *       *       *       *       *       *       *


Sec. 40117. Passenger facility fees

  (a) Definitions.--In this section--
          (1)  * * *

           *       *       *       *       *       *       *

          (3) ``eligible airport-related project'' means a 
        project--
                  (A)  * * *

           *       *       *       *       *       *       *

                  (C) for costs of terminal development 
                referred to in subparagraph (B) incurred after 
                August 1, 1986, at an airport that did not have 
                more than .25 percent of the total annual 
                passenger boardings in the United States in the 
                most recent calendar year for which data is 
                available and at which total passenger 
                boardings declined by at least 16 percent 
                between calendar year 1989 and calendar year 
                1997;
                  [(C)] (D) for airport noise capability 
                planning under section 47505 of this title;
                  [(D)] (E) to carry out noise compatibility 
                measures eligible for assistance under section 
                47504 of this title, whether or not a program 
                for those measures has been approved under 
                section 47504; [and]
                  [(E)] (F) for constructing gates [and], 
                related areas at which passengers board or exit 
                aircraft[.] (including structural foundations 
                and floor systems, exterior building walls and 
                load-bearing interior columns or walls, 
                windows, door and roof systems, and building 
                utilities (including heating, air conditioning, 
                ventilation, plumbing, and electrical 
                service)), and aircraft fueling facilities 
                adjacent to the gate.

           *       *       *       *       *       *       *

  (b) General Authority.--(1)  * * *

           *       *       *       *       *       *       *

  (4) Notwithstanding paragraph (1), the Secretary may 
authorize under this section an eligible agency to impose a 
passenger facility fee in whole dollar amounts of more than $3 
on each paying passenger of an air carrier or foreign air 
carrier boarding an aircraft at an airport the agency controls 
to finance an eligible airport-related project, including 
making payments for debt service on indebtedness incurred to 
carry out the project, if the Secretary finds--
          (A) that the project will make a significant 
        contribution to improving air safety and security, 
        increasing competition among air carriers, reducing 
        current or anticipated congestion, or reducing the 
        impact of aviation noise on people living near the 
        airport;
          (B) that the project cannot be paid for from funds 
        reasonably expected to be available for the programs 
        referred to in section 48103; and
          (C) that the amount to be imposed is not more than 
        twice that which may be imposed under paragraph (1).

           *       *       *       *       *       *       *

  (d) Limitations on Approving Applications.--The Secretary may 
approve an application that an eligible agency has submitted 
under subsection (c) of this section to finance a specific 
project only if the Secretary finds, based on the application, 
that--
          (1)  * * *
          (2) each project is an eligible airport-related 
        project that will--
                  (A)  * * *

           *       *       *       *       *       *       *

                  (C) provide an opportunity for enhanced 
                competition between or among air carriers and 
                foreign air carriers; [and]
          (3) the application includes adequate justification 
        for each of the specific projects[.]; and
          (4) in the case of an application to impose a fee of 
        more than $3 for a surface transportation or terminal 
        project, the agency has made adequate provision for 
        financing the airside needs of the airport, including 
        runways, taxiways, aprons, and aircraft gates.

           *       *       *       *       *       *       *

  (i) Regulations.--The Secretary shall prescribe regulations 
necessary to carry out this section. The regulations--
          (1) may prescribe the time and form by which a 
        passenger facility fee takes effect; [and]
          (2) shall--
                  (A)  * * *

           *       *       *       *       *       *       *

                  (D) require that the amount collected for any 
                air transportation be noted on the ticket for 
                that air transportation[.]; and
          (3) may permit a public agency to request that 
        collection of a passenger facility fee be waived for--
                  (A) passengers enplaned by any class of air 
                carrier or foreign air carrier if the number of 
                passengers enplaned by the carrier in the class 
                constitutes not more than 1 percent of the 
                total number of passengers enplaned annually at 
                the airport at which the fee is imposed; or
                  (B) passengers traveling to an airport--
                          (i) that has fewer than 2,500 
                        passenger boardings each year and 
                        receives scheduled passenger service; 
                        and
                          (ii) in a community which has a 
                        population of less than 10,000 and is 
                        not connected by a land highway to the 
                        land-connected National Highway System 
                        within a State.
  (j) Competition Plans.--Beginning in fiscal year 2001, no 
eligible agency may impose a passenger facility fee under this 
section with respect to a covered airport (as such term is 
defined in section 47106(f)) unless the agency has submitted to 
the Secretary a written competition plan in accordance with 
such section. This subsection does not apply to passenger 
facility fees in effect before the date of enactment of this 
subsection.

           *       *       *       *       *       *       *


Sec. 40120. 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 (including 
the Act entitled ``An Act relating to the maintenance of 
actions for death on the high seas and other navigable 
waters'', approved March 30, 1920, commonly known as the Death 
on the High Seas Act (46 U.S.C. App. 761-767; 41 Stat. 537-
538)) and the rules for the prevention of collisions do not 
apply to aircraft or to the navigation of vessels related to 
those aircraft.

           *       *       *       *       *       *       *


Sec. 40122. Federal Aviation Administration personnel management system

  (a) In General.--
          (1)  * * *
          (2) Mediation.--If the Administrator does not reach 
        an agreement under paragraph (1) with the exclusive 
        bargaining representatives, the services of the Federal 
        Mediation and Conciliation Service shall be used to 
        attempt to reach such agreement. If the services of the 
        Federal Mediation and Conciliation Service do not lead 
        to an agreement, the Administrator's proposed change to 
        the personnel management system shall not take effect 
        until 60 days have elapsed after the Administrator has 
        transmitted the proposed change, along with the 
        objections of the exclusive bargaining representatives 
        to the change, and the reasons for such objections, to 
        Congress. The 60-day period shall not include any 
        period during which Congress has adjourned sine die.

           *       *       *       *       *       *       *

  (g) Right To Contest Adverse Personnel Actions.--An employee 
of the Federal Aviation Administration who is the subject of a 
major adverse personnel action may contest the action either 
through any contractual grievance procedure that is applicable 
to the employee as a member of the collective bargaining unit 
or through the Administration's internal process relating to 
review of major adverse personnel actions of the 
Administration, known as Guaranteed Fair Treatment or under 
section 347(c) of the Department of Transportation and Related 
Agencies Appropriations Act, 1996.
  (h) Election of Forum.--Where a major adverse personnel 
action may be contested through more than one of the indicated 
forums (such as the contractual grievance procedure, the 
Federal Aviation Administration's internal process, or that of 
the Merit Systems Protection Board), an employee must elect the 
forum through which the matter will be contested. Nothing in 
this section is intended to allow an employee to contest an 
action through more than one forum unless otherwise allowed by 
law.
  (i) Definition.--For purposes of this section, the term 
``major adverse personnel action'' means a suspension of more 
than 14 days, a reduction in pay or grade, a removal for 
conduct or performance, a nondisciplinary removal, a furlough 
of 30 days or less (but not including placement in a nonpay 
status as the result of a lapse of appropriations or an 
enactment by Congress), or a reduction in force action.

           *       *       *       *       *       *       *


Sec. 40125. Qualifications for public aircraft status

  (a) Definitions.--In this section, the following definitions 
apply:
          (1) Commercial purposes.--The term ``commercial 
        purposes'' means the transportation of persons or 
        property for compensation or hire, but does not include 
        the operation of an aircraft by one government on 
        behalf of another government under a cost reimbursement 
        agreement if the government on whose behalf the 
        operation is conducted certifies to the Administrator 
        of the Federal Aviation Administration that the 
        operation is necessary to respond to a significant and 
        imminent threat to life or property (including natural 
        resources) and that no service by a private operator is 
        reasonably available to meet the threat.
          (2) Governmental function.--The term ``governmental 
        function'' means an activity undertaken by a 
        government, such as firefighting, search and rescue, 
        law enforcement, aeronautical research, or biological 
        or geological resource management.
          (3) Qualified non-crewmember.--The term ``qualified 
        non-crewmember'' means an individual, other than a 
        member of the crew, aboard an aircraft--
                  (A) operated by the armed forces or an 
                intelligence agency of the United States 
                Government; or
                  (B) whose presence is required to perform, or 
                is associated with the performance of, a 
                governmental function.
  (b) Aircraft Owned by the United States.--An aircraft 
described in subparagraph (A) or (B) of section 40102(38), if 
owned by the Government, qualifies as a public aircraft except 
when it is used for commercialpurposes or to carry an 
individual other than a crewmember or a qualified non-crewmember.
  (c) Aircraft Owned by State and Local Governments.--An 
aircraft described in subparagrapg (C) or (D) of section 
40102(a)(38) qualifies as a public aircraft except when it is 
used for commercial purposes or to carry an individual other 
than a crewmember or a qualified non-crewmember.

Sec. 40126. Overflights of national parks

  (a) In General.--
          (1) General requirements.--A commercial air tour 
        operator may not conduct commercial air tour operations 
        over a national park (including tribal lands) except--
                  (A) in accordance with this section;
                  (B) in accordance with conditions and 
                limitations prescribed for that operator by the 
                Administrator; and
                  (C) in accordance with any applicable air 
                tour management plan for the park.
          (2) Application for operating authority.--
                  (A) Application required.--Before commencing 
                commercial air tour operations over a national 
                park (including tribal lands), a commercial air 
                tour operator shall apply to the Administrator 
                for authority to conduct the operations over 
                the park.
                  (B) Competitive bidding for limited capacity 
                parks.--Whenever an air tour management plan 
                limits the number of commercial air tour 
                operations over a national park during a 
                specified time frame, the Administrator, in 
                cooperation with the Director, shall issue 
                operation specifications to commercial air tour 
                operators that conduct such operations. The 
                operation specifications shall include such 
                terms and conditions as the Administrator and 
                the Director find necessary for management of 
                commercial air tour operations over the park. 
                The Administrator, in cooperation with the 
                Director, shall develop an open competitive 
                process for evaluating proposals from persons 
                interested in providing commercial air tour 
                operations over the park. In making a selection 
                from among various proposals submitted, the 
                Administrator, in cooperation with the 
                Director, shall consider relevant factors, 
                including--
                          (i) the safety record of the person 
                        submitting the proposal or pilots 
                        employed by the person;
                          (ii) any quiet aircraft technology 
                        proposed to be used by the person 
                        submitting the proposal;
                          (iii) the experience of the person 
                        submitting the proposal with commercial 
                        air tour operations over other national 
                        parks or scenic areas;
                          (iv) the financial capability of the 
                        company;
                          (v) any training programs for pilots 
                        provided by the person submitting the 
                        proposal; and
                          (vi) responsiveness of the person 
                        submitting the proposal to any relevant 
                        criteria developed by the National Park 
                        Service for the affected park.
                  (C) Number of operations authorized.--In 
                determining the number of authorizations to 
                issue to provide commercial air tour operations 
                over a national park, the Administrator, in 
                cooperation with the Director, shall take into 
                consideration the provisions of the air tour 
                management plan, the number of existing 
                commercial air tour operators and current level 
                of service and equipment provided by any such 
                operators, and the financial viability of each 
                commercial air tour operation.
                  (D) Cooperation with nps.--Before granting an 
                application under this paragraph, the 
                Administrator, in cooperation with the 
                Director, shall develop an air tour management 
                plan in accordance with subsection (b) and 
                implement such plan.
          (3) Exception.--
                  (A) In general.--If a commercial air tour 
                operator secures a letter of agreement from the 
                Administrator and the superintendent for the 
                national park that describes the conditions 
                under which the commercial air tour operation 
                will be conducted, then notwithstanding 
                paragraph (1), the commercial air tour operator 
                may conduct such operations over the national 
                park under part 91 of title 14, Code of Federal 
                Regulations, if such activity is permitted 
                under part 119 of such title.
                  (B) Limit on exceptions.--Not more than 5 
                flights in any 30-day period over a single 
                national park may be conducted under this 
                paragraph.
          (4) Special rule for safety requirements.--
        Notwithstanding subsection (d), an existing commercial 
        air tour operator shall apply, not later than 90 days 
        after the date of enactment of this section, for 
        operating authority under part 119, 121, or 135 of 
        title 14, Code of Federal Regulations. A new entrant 
        commercial air tour operator shall apply for such 
        authority before conducting commercial air tour 
        operations over a national park (including tribal 
        lands). The Administrator shall act on any such 
        application for a new entrant and issue a decision on 
        the application not later than 24 months after it is 
        received or amended.
  (b) Air Tour Management Plans.--
          (1) Establishment.--
                  (A) In general.--The Administrator, in 
                cooperation with the Director, shall establish 
                an air tour management plan for any national 
                park (including tribal lands) for which such a 
                plan is not in effect whenever a person applies 
                for authority to conduct a commercial air tour 
                operation over the park. The air tour 
                management plan shall be developed by means of 
                a public process in accordance with paragraph 
                (4).
                  (B) Objective.--The objective of any air tour 
                management plan shall be to develop acceptable 
                and effective measures to mitigate or prevent 
                the significant adverse impacts, if any, of 
                commercial air tours upon the natural and 
                cultural resources, visitor experiences, and 
                tribal lands.
          (2) Environmental determination.--In establishing an 
        air tour management plan under this subsection, the 
        Administrator and the Director shall each sign the 
        environmental decision document required by section 102 
        of the National Environmental Policy Act of 1969 (42 
        U.S.C. 4332) (including a finding of no significant 
        impact, an environmental assessment, and an environmental 
        impact statement) and the record of decision for the 
        air tour management plan.
          (3) Contents.--An air tour management plan for a 
        national park--
                  (A) may limit or prohibit commercial air tour 
                operations;
                  (B) may establish conditions for the conduct 
                of commercial air tour operations, including 
                commercial air tour operation routes, maximum 
                or minimum altitudes, time-of-day restrictions, 
                restrictions for particular events, maximum 
                number of flights per unit of time, intrusions 
                on privacy on tribal lands, and mitigation of 
                adverse noise, visual, or other impacts;
                  (C) may apply to all commercial air tour 
                operations;
                  (D) shall include incentives (such as 
                preferred commercial air tour operation routes 
                and altitudes and relief from flight caps and 
                curfews) for the adoption of quiet aircraft 
                technology by commercial air tour operators 
                conducting commercial air tour operations over 
                the park;
                  (E) shall provide a system for allocating 
                opportunities to conduct commercial air tours 
                if the air tour management plan includes a 
                limitation on the number of commercial air tour 
                operations for any time period; and
                  (F) shall justify and document the need for 
                measures taken pursuant to subparagraphs (A) 
                through (E) and include such justifications in 
                the record of decision.
          (4) Procedure.--In establishing an air tour 
        management plan for a national park (including tribal 
        lands), the Administrator and the Director shall--
                  (A) hold at least one public meeting with 
                interested parties to develop the air tour 
                management plan;
                  (B) publish the proposed plan in the Federal 
                Register for notice and comment and make copies 
                of the proposed plan available to the public;
                  (C) comply with the regulations set forth in 
                sections 1501.3 and 1501.5 through 1501.8 of 
                title 40, Code of Federal Regulations (for 
                purposes of complying with the regulations, the 
                Federal Aviation Administration shall be the 
                lead agency and the National Park Service is a 
                cooperating agency); and
                  (D) solicit the participation of any Indian 
                tribe whose tribal lands are, or may be, 
                overflown by aircraft involved in a commercial 
                air tour operation over the park, as a 
                cooperating agency under the regulations 
                referred to in subparagraph (C).
          (5) Judicial review.--An air tour management plan 
        developed under this subsection shall be subject to 
        judicial review.
          (6) Amendments.--The Administrator, in cooperation 
        with the Director, may make amendments to an air tour 
        management plan. Any such amendments shall be published 
        in the Federal Register for notice and comment. A 
        request for amendment of an air tour management plan 
        shall be made in such form and manner as the 
        Administrator may prescribe.
  (c) Determination of Commercial Air Tour Operation Status.--
In making a determination of whether a flight is a commercial 
air tour operation, the Administrator may consider--
          (1) whether there was a holding out to the public of 
        willingness to conduct a sightseeing flight for 
        compensation or hire;
          (2) whether a narrative that referred to areas or 
        points of interest on the surface below the route of 
        the flight was provided by the person offering the 
        flight;
          (3) the area of operation;
          (4) the frequency of flights conducted by the person 
        offering the flight;
          (5) the route of flight;
          (6) the inclusion of sightseeing flights as part of 
        any travel arrangement package offered by the person 
        offering the flight;
          (7) whether the flight would have been canceled based 
        on poor visibility of the surface below the route of 
        the flight; and
          (8) any other factors that the Administrator 
        considers appropriate.
  (d) Interim Operating Authority.--
          (1) In general.--Upon application for operating 
        authority, the Administrator shall grant interim 
        operating authority under this subsection to a 
        commercial air tour operator for commercial air tour 
        operations over a national park (including tribal 
        lands) for which the operator is an existing commercial 
        air tour operator.
          (2) Requirements and limitations.--Interim operating 
        authority granted under this subsection--
                  (A) shall provide annual authorization only 
                for the greater of--
                          (i) the number of flights used by the 
                        operator to provide such tours within 
                        the 12-month period prior to the date 
                        of enactment of this section; or
                          (ii) the average number of flights 
                        per 12-month period used by the 
                        operator to provide such tours within 
                        the 36-month period prior to such date 
                        of enactment, and, for seasonal 
                        operations, the number of flights so 
                        used during the season or seasons 
                        covered by that 12-month period;
                  (B) may not provide for an increase in the 
                number of commercial air tour operations 
                conducted during any time period by the 
                commercial air tour operator above the number 
                that the air tour operator was originally 
                granted unless such an increase is agreed to by 
                the Administrator and the Director;
                  (C) shall be published in the Federal 
                Register to provide notice and opportunity for 
                comment;
                  (D) may be revoked by the Administrator for 
                cause;
                  (E) shall terminate 180 days after the date 
                on which an air tour management plan is 
                established for the park or the tribal lands;
                  (F) shall promote protection of national park 
                resources, visitor experiences, and tribal 
                lands;
                  (G) shall promote safe operations of the 
                commercial air tour;
                  (H) shall promote the adoption of quiet 
                technology, as appropriate; and
                  (I) shall allow for modifications of the 
                operation based on experience if the 
                modification improves protection of national 
                park resources and values and of tribal lands.
  (e) Exemptions.--
          (1) In general.--Except as provided by paragraph (2), 
        this section shall not apply to--
                  (A) the Grand Canyon National Park;
                  (B) tribal lands within or abutting the Grand 
                Canyon National Park; or
                  (C) any unit of the National Park System 
                located in Alaska or any other land or water 
                located in Alaska.
          (2) Exception.--This section shall apply to the Grand 
        Canyon National Park if section 3 of Public Law 100-91 
        (16 U.S.C. 1a-1 note; 101 Stat. 674-678) is no longer 
        in effect.
  (f) Definitions.--In this section, the following definitions 
apply:
          (1) Commercial air tour operator.--The term 
        ``commercial air tour operator'' means any person who 
        conducts a commercial air tour operation.
          (2) Existing commercial air tour operator.--The term 
        ``existing commercial air tour operator'' means a 
        commercial air tour operator that was actively engaged 
        in the business of providing commercial air tour 
        operations over a national park at any time during the 
        12-month period ending on the date of enactment of this 
        section.
          (3) New entrant commercial air tour operator.--The 
        term ``new entrant commercial air tour operator'' means 
        a commercial air tour operator that--
                  (A) applies for operating authority as a 
                commercial air tour operator for a national 
                park; and
                  (B) has not engaged in the business of 
                providing commercial air tour operations over 
                the national park (including tribal lands) in 
                the 12-month period preceding the application.
          (4) Commercial air tour operation.--The term 
        ``commercial air tour operation'' means any flight, 
        conducted for compensation or hire in a powered 
        aircraft where a purpose of the flight is sightseeing 
        over a national park, within \1/2\ mile outside the 
        boundary of any national park, or over tribal lands, 
        during which the aircraft flies--
                  (A) below a minimum altitude, determined by 
                the Administrator in cooperation with the 
                Director, above ground level (except solely for 
                purposes of takeoff or landing, or necessary 
                for safe operation of an aircraft as determined 
                under the rules and regulations of the Federal 
                Aviation Administration requiring the pilot-in-
                command to take action to ensure the safe 
                operation of the aircraft); or
                  (B) less than 1 mile laterally from any 
                geographic feature within the park (unless more 
                than \1/2\ mile outside the boundary).
          (5) National park.--The term ``national park'' means 
        any unit of the National Park System.
          (6) Tribal lands.--The term ``tribal lands'' means 
        Indian country (as that term is defined in section 1151 
        of title 18) that is within or abutting a national 
        park.
          (7) Administrator.--The term ``Administrator'' means 
        the Administrator of the Federal Aviation 
        Administration.
          (8) Director.--The term ``Director'' means the 
        Director of the National Park Service.

                    SUBPART II--ECONOMIC REGULATION

                CHAPTER 411--AIR CARRIER CERTIFICATES

           *       *       *       *       *       *       *


Sec. 41113. Plans to address needs of families of passengers involved 
                    in aircraft accidents

  (a) Submission of Plans.--[Not later than 6 months after the 
date of the enactment of this section, each air carrier] Each 
air carrier holding a certificate of public convenience and 
necessity under section 41102 of this title shall submit to the 
Secretary and the Chairman of the National Transportation 
Safety Board a plan for addressing the needs of the families of 
passengers involved in any aircraft accident involving an 
aircraft of the air carrier and resulting in a major loss of 
life.
  (b) Contents of Plans.--A plan to be submitted by an air 
carrier under subsection (a) shall include, at a minimum, the 
following:
          (1)  * * *

           *       *       *       *       *       *       *

          (14) An assurance that, upon request of the family of 
        a passenger, the air carrier will inform the family of 
        whether the passenger's name appeared on a preliminary 
        passenger manifest for the flight involved in the 
        accident.
          (15) An assurance that the air carrier will provide 
        adequate training to the employees and agents of the 
        carrier to meet the needs of survivors and family 
        members following an accident.
          (16) An assurance that the air carrier, in the event 
        that the air carrier volunteers assistance to United 
        States citizens within the United States in the case of 
        an aircraft accident outside the United States 
        involving major loss of life, the air carrier will 
        consult with the Board and the Department of State on 
        the provision of the assistance.
  (c) Certificate Requirement.--[After the date that is 6 
months after the date of the enactment of this section, the 
Secretary] The Secretary may not approve an application for a 
certificate of public convenience and necessity under section 
41102 of this title unless the applicant [has included as part 
of such application a plan that meets the requirements of 
subsection (b).] has included as part of such application--
          (1) a plan that meets the requirements of subsection 
        (b); and
          (2) an agreement that in the event that the air 
        carrier volunteers assistance to United States citizens 
        within the United States in the case of an aircraft 
        accident outside the UnitedStates involving major loss 
of life, the air carrier will consult with the Board and the Department 
of State on the provision of the assistance.
  (d) Limitation on Liability.--An air carrier shall not be 
liable for damages in any action brought in a Federal or State 
court arising out of the performance of the air carrier in 
preparing or providing a passenger list, or in providing 
information concerning a flight reservation, pursuant to a plan 
submitted by the air carrier under subsection (b), unless such 
liability was caused by conduct of the air carrier which was 
grossly negligent or which constituted intentional misconduct.

           *       *       *       *       *       *       *

  (f) Limitation on Statutory Construction.--Nothing in this 
section may be construed as limiting the actions that an air 
carrier may take, or the obligations that an air carrier may 
have, in providing assistance to the families of passengers 
involved in an aircraft accident.

                CHAPTER 413--FOREIGN AIR TRANSPORTATION

           *       *       *       *       *       *       *


Sec. 41310. Discriminatory practices

  [(a) Prohibition.--An air carrier or foreign air carrier may 
not subject a person, place, port, or type of traffic in 
foreign air transportation to unreasonable discrimination.]
  (a) Prohibitions.--
          (1) In general.--An air carrier or foreign air 
        carrier may not subject a person, place, port, or type 
        of traffic in foreign air transportation to 
        unreasonable discrimination.
          (2) Discrimination against persons.--An air carrier 
        or foreign air carrier may not subject a person in 
        foreign air transportation to discrimination on the 
        basis of race, color, national origin, religion, or 
        sex.

           *       *       *       *       *       *       *


Sec. 41313. Plans to address needs of families of passengers involved 
                    in foreign air carrier accidents

  (a) Definitions.--In this section, the following definitions 
apply:
          (1)  * * *
          [(2) Passenger.--The term ``passenger'' includes an 
        employee of a foreign air carrier or air carrier aboard 
        an aircraft.]
          (2) Passenger.--The term ``passenger'' has the 
        meaning given such term by section 1136 of this title.
  (b) Submission of Plans.--A foreign air carrier providing 
foreign air transportation under this chapter shall transmit to 
the Secretary of Transportation and the Chairman of the 
National Transportation Safety Board a plan for addressing the 
needs of the families of passengers involved in an aircraft 
accident that involves an aircraft under the control of the 
foreign air carrier and results in a [significant] major loss 
of life.
  (c) Contents of Plans.--To the extent permitted by foreign 
law which was in effect on the date of the enactment of this 
section, a plan submitted by a foreign air carrier under 
subsection (b) shall include the following:
          (1)  * * *
          (15) Training of employees and agents.--An assurance 
        that the foreign air carrier will provide adequate 
        training to the employees and agents of the carrier to 
        meet the needs of survivors and family members 
        following an accident.
          (16) Consultation on carrier response not covered by 
        plan.--An assurance that the foreign air carrier, in 
        the event that the foreign air carrier volunteers 
        assistance to United States citizens within the United 
        States in the case of an aircraft accident outside the 
        United States involving major loss of life, the foreign 
        air carrier will consult with the Board and the 
        Department of State on the provision of the assistance.

           *       *       *       *       *       *       *

  (d) Permit and Exemption Requirement.--The Secretary shall 
not approve an application for a permit under section 41302 
unless the applicant [has included as part of the application 
or request for exemption a plan that meets the requirements of 
subsection (c).] has included as part of the application or 
request for exemption--
          (1) a plan that meets the requirements of subsection 
        (c); and
          (2) an agreement that, in the event that the foreign 
        air carrier volunteers assistance to United States 
        citizens within the United States in the case of an 
        aircraft accident outside the United States involving 
        major loss of life, the foreign air carrier will 
        consult with the Board and the Department of State on 
        the provision of the assistance.

           *       *       *       *       *       *       *


                  CHAPTER 417--OPERATIONS OF CARRIERS

           *       *       *       *       *       *       *


               SUBCHAPTER II--SMALL COMMUNITY AIR SERVICE

41731.  Definitions.
     * * * * * * *
[41742.  Essential air service authorization.]
41742.  Small community air service authorization.
     * * * * * * *

         SUBCHAPTER III--REGIONAL AIR SERVICE INCENTIVE PROGRAM

Sec.
41761. Purpose.
41762. Definitions.
41763. Federal credit instruments.
41764. Use of Federal facilities and assistance.
41765. Administrative expenses.
41766. Funding.
41767. Termination.

                       SUBCHAPTER I--REQUIREMENTS

           *       *       *       *       *       *       *


Sec. 41702. Interstate air transportation

  [An air carrier] (a) Safe and Adequate Air Transportation.--
An air carrier shall provide safe and adequate interstate air 
transportation.
  (b) Discrimination Against Persons.--An air carrier may not 
subject a person in interstate air transportation to 
discrimination on the basis of race, color, national origin, 
religion, or sex.

           *       *       *       *       *       *       *


Sec. 41705. Discrimination against handicapped individuals

  In providing air transportation, an air carrier or foreign 
air carrier may not discriminate against an otherwise qualified 
individual on the following grounds:
          (1)  * * *

           *       *       *       *       *       *       *


Sec. 41714. Availability of slots

  (a)  * * *

           *       *       *       *       *       *       *

  [(e) Study.--
          [(1) Matters to be considered.--The Secretary shall 
        continue the Secretary's current examination of slot 
        regulations and shall ensure that the examination 
        includes consideration of--
                  [(A) whether improvements in technology and 
                procedures of the air traffic control system 
                and the use of quieter aircraft make it 
                possible to eliminate the limitations on hourly 
                operations imposed by the high density rule 
                contained in part 93 of title 14 of the Code of 
                Federal Regulations or to increase the number 
                of operations permitted under such rule;
                  [(B) the effects of the elimination of 
                limitations or an increase in the number of 
                operations allowed on each of the following:
                          [(i) congestion and delay in any part 
                        of the national aviation system;
                          [(ii) the impact of noise on persons 
                        living near the airport;
                          [(iii) competition in the air 
                        transportation system;
                          [(iv) the profitability of operations 
                        of airlines serving the airport; and
                          [(v) aviation safety;
                  [(C) the impact of the current slot 
                allocation process upon the ability of air 
                carriers to provide essential air service under 
                subchapter II of this chapter;
                  [(D) the impact of such allocation process 
                upon the ability of new entrant air carriers to 
                obtain slots in time periods that enable them 
                to provide service;
                  [(E) the impact of such allocation process on 
                the ability of foreign air carriers to obtain 
                slots;
                  [(F) the fairness of such process to air 
                carriers and the extent to which air carriers 
                are provided equivalent rights of access to the 
                air transportation market in the countries of 
                which foreign air carriers holding slots are 
                citizens;
                  [(G) the impact, on the ability of air 
                carriers to provide domestic and international 
                air service, of the withdrawal of slots from 
                air carriers in order to provide slots for 
                foreign air carriers; and
                  [(H) the impact of the prohibition on slot 
                withdrawals in subsections (b)(2) and (b)(3) of 
                this section on the aviation relationship 
                between the United States Government and 
                foreign governments, including whether the 
                prohibition in such subsections will require 
                the withdrawal of slots from general and 
                military aviation in order to meet the needs of 
                air carriers and foreign air carriers providing 
                foreign air transportation (and the impact of 
                such withdrawal on general aviation and 
                military aviation) and whether slots will 
                become available to meet the needs of air 
                carriers and foreign air carriers to provide 
                foreign air transportation as a result of the 
                planned relocation of Air Force Reserve units 
                and the Air National Guard at O'Hare 
                International Airport.
          [(2) Report.--Not later than January 31, 1995, the 
        Secretary shall complete the current examination of 
        slot regulations and shall transmit to the Committee on 
        Commerce, Science, and Transportation of the Senate and 
        the Committee on Transportation and Infrastructure of 
        the House of Representatives a report containing the 
        results of such examination.
  [(f) Rulemaking.--The Secretary shall conduct a rulemaking 
proceeding based on the results of the study described in 
subsection (e). In the course of such proceeding, the Secretary 
shall issue a notice of proposed rulemaking not later than 
August 1, 1995, and shall issue a final rule not later than 90 
days after public comments are due on the notice of proposed 
rulemaking.]
  (e) Slots for Airports Not Receiving Sufficient Service.--
          (1) Exemptions.--Notwithstanding chapter 491, 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 air carriers to 
        provide nonstop air transportation using jet aircraft 
        that comply with the stage 3 noise levels of part 36 of 
        such title 14 between Ronald Reagan Washington National 
        Airport and an airport that had less than 2,000,000 
        enplanements in the most recent year for which such 
        enplanement data is available or between Ronald Reagan 
        Washington National Airport and an airport that does 
        not have nonstop transportation to Ronald Reagan 
        Washington National Airport using such aircraft on the 
        date on which the application for an exemption is 
        filed.
          (2) Limitations.--
                  (A) Maximum number of exemptions.--No more 
                than 2 exemptions per hour and no more than 6 
                exemptions per day may be granted under this 
                subsection for slots at Ronald Reagan 
                Washington National Airport.
                  (B) Maximum distance of flights.--An 
                exemption may be granted under this subsection 
                for a slot at Ronald Reagan Washington National 
                Airport only if the flight utilizing such slot 
                begins or ends within 1,250 miles of the 
                Airport and a stage 3 aircraft is used for such 
                flight.
          (3) Application.--An air carrier interested in an 
        exemption under this subsection shall submit to the 
        Secretary an application for such exemption. No 
        application may be submitted to the Secretary before 
        the last day of the 30-day period beginning on the date 
        of the enactment of this paragraph.
          (4) Deadline for decision.--Notwithstanding any other 
        provision of law, the Secretary shall make a decision 
        with regard to granting an exemption under this 
        subsection on or before the 120th day following the 
        date of the application for the exemption. If the 
        Secretary does not make the decision on or before such 
        120th day, the air carrier applying for the service may 
        provide such service until the Secretary makes the 
        decision or the Administrator of the Federal Aviation 
        Administration determines that providing such service 
        would have an adverse effect on air safety.
          (5) Period of effectiveness.--An exemption granted 
        under this subsection shall remain in effect only while 
        the air carrier for whom the exemption is granted 
        continues to provide the nonstop air transportation for 
        which the exemption is granted.
  (f) Treatment of Certain Commuter Air Carriers.--The 
Secretary shall treat all commuter air carriers that have 
cooperative agreements, including code share agreements with 
other air carriers, equally for determining eligibility for 
exemptions under this section regardless of the form of the 
corporate relationship between the commuter air carrier and the 
other air carrier.

           *       *       *       *       *       *       *


Sec. 41716. Joint venture agreements

  (a) Definitions.--In this section, the following definitions 
apply:
          (1) Joint venture agreement.--The term ``joint 
        venture agreement'' means [an agreement entered into by 
        a major air carrier] an agreement entered into between 
        2 or more major air carriers on or after January 1, 
        1998, with regard to (A) code-sharing, blocked-space 
        arrangements, long-term wet leases (as defined in 
        section 207.1 of title 14, Code of Federal Regulations) 
        of a substantial number (as defined by the Secretary by 
        regulation) of aircraft, or frequent flyer programs, or 
        (B) any other cooperative working arrangement (as 
        defined by the Secretary by regulation) between 2 or 
        more major air carriers that affects more than 15 
        percent of the total number of available seat miles 
        offered by the major air carriers.

           *       *       *       *       *       *       *


             SUBCHAPTER II--SMALL COMMUNITY AIR SERVICE

           *       *       *       *       *       *       *


Sec. 41736. Air transportation to noneligible places

  (a)  * * *

           *       *       *       *       *       *       *

  (b) Approval for Certain Air Transportation.--Notwithstanding 
subsection (a)(1)(B) of this section, the Secretary shall 
approve a proposal under this section to compensate an air 
carrier for providing air transportation to a place in the 48 
contiguous States or the District of Columbia and designate the 
place as eligible for compensation under this section if--
          (1)  * * *

           *       *       *       *       *       *       *

Paragraph (4) shall not apply to any place for which a proposal 
was approved or that was designated as eligible under this 
section in the period beginning on October 1, 1991, and ending 
on December 31, 1997.

           *       *       *       *       *       *       *


Sec. 41742. [Essential] Small community air service authorization

  (a) In General.--Out of the amounts received by the Federal 
Aviation Administration credited to the account established 
under section 45303 of this title or otherwise provided to the 
Administration, the sum of [$50,000,000] $60,000,000 is 
authorized and shall be made available immediately for 
obligation and expenditure to carry out the [essential air] 
small community air service program under this subchapter for 
each fiscal year.
  [(b) Funding for Small Community Air Service.--
Notwithstanding any other provision of law, moneys credited to 
the account established under section 45303(a) of this title, 
including the funds derived from fees imposed under the 
authority contained in section 45301(a) of this title, shall be 
used to carry out the essential air service program under this 
subchapter. Notwithstanding section 47114(g) of this title, any 
amounts from those fees that are not obligated or expended at 
the end of the fiscal year for the purpose of funding the 
essential air service program under this subchapter shall be 
made available to the Administration for use in improving rural 
air safety under subchapter I of chapter 471 of this title and 
shall be used exclusively for projects at rural airports under 
this subchapter.]
  (b) Funding for Small Community Air Service.--
          (1) In general.--Notwithstanding any other provision 
        of law, from moneys credited to the account established 
        under section 45303(a), including the funds derived 
        from fees imposed under the authority contained in 
        section 45301(a)--
                  (A) not to exceed $50,000,000 for each fiscal 
                year beginning after September 30, 1999, shall 
                be used to carry out the small community air 
                service program under this subchapter; and
                  (B) not to exceed $10,000,000 for such fiscal 
                year shall be used--
                          (i) for assisting an air carrier to 
                        subsidize service to and from an 
                        underserved airport for a period not to 
                        exceed 3 years;
                          (ii) for assisting an underserved 
                        airport to obtain jet aircraft service 
                        (and to promote passenger use of that 
                        service) to and from the underserved 
                        airport; and
                          (iii) for assisting an underserved 
                        airport to implement such other 
                        measures as the Secretary of 
                        Transportation, in consultation with 
                        such airport, considers appropriate to 
                        improve air service both in terms of 
                        the cost of such service to consumers 
                        and the availability of such service, 
                        including improving air service through 
                        marketing and promotion of air service 
                        and enhanced utilization of airport 
                        facilities.
          (2) Rural air safety.--Any funds that are made 
        available by paragraph (1) for a fiscal year and that 
        the Secretary determines will not be obligated or 
        expended before the last day of such fiscal year shall 
        be available to the Administrator for use under this 
        subchapter in improving rural air safety at airports 
        with less than 100,000 annual boardings.
          (3) Allocation of additional funding.--If, for a 
        fiscal year beginning after September 30, 1999, more 
        than $60,000,000 is made available under subsection (a) 
        to carry out the small community air service program, 
        \1/2\ of the amounts in excess of $60,000,000 shall be 
        used for the purposes specified in paragraph (1)(B), in 
        addition to amounts made available for such purposes 
        under paragraph (1)(B).
          (4) Use of unobligated amounts.--Any funds made 
        available under paragraph (1)(A) for the small 
        community air service program for a fiscal year that 
        the Secretary determines will not be obligated or 
        expended before the last day of such fiscal year shall 
        be available for use by the Secretary for the purposes 
        described in paragraph (1)(B).
          (5) Authorization of appropriations.--In addition to 
        amounts made available under paragraph (1), of the 
        amounts appropriated pursuant to section 106(k) for a 
        fiscal year beginning after September 30, 2000, not to 
        exceed $15,000,000 may be used--
                  (A) to provide assistance to an air carrier 
                to subsidize service to and from an underserved 
                airport for a period not to exceed 3 years;
                  (B) to provide assistance to an underserved 
                airport to obtain jet aircraft service (and to 
                promote passenger use of that service) to and 
                from the underserved airport; and
                  (C) to provide assistance to an underserved 
                airport to implement such other measures as the 
                Secretary, in consultation with such airport, 
                considers appropriate to improve air service 
                both in terms of the cost of such service to 
                consumers and the availability of such service, 
                including improving air service through 
                marketing and promotion of air service and 
                enhanced utilization of airport facilities.
          (6) Priority criteria for assisting airports not 
        receiving sufficient service.--In providing assistance 
        to airports under paragraphs (1)(B) and (5), the 
        Administrator shall give priority to those airports for 
        which a community will provide, from local sources (other 
        than airport revenues), a portion of the cost of the activity 
        to be assisted.
          (7) Definitions.--In this subsection, the following 
        definitions apply:
                  (A) Underserved airport.--The term 
                ``underserved airport'' means a nonhub airport 
                or small hub airport (as such terms are defined 
                in section 41731) that--
                          (i) the Secretary determines is not 
                        receiving sufficient air carrier 
                        service; or
                          (ii) has unreasonably high airfares.
                  (B) Unreasonably high airfare.--The term 
                ``unreasonably high airfare'', as used with 
                respect to an airport, means that the airfare 
                listed in the table entitled ``Top 1,000 City-
                Pair Market Summarized by City'', contained in 
                the Domestic Airline Fares Consumer Report of 
                the Department of Transportation, for one or 
                more markets for which the airport is a part of 
                has an average yield listed in such table that 
                is more than 19 cents.
  (c) Special Rule for Fiscal Year 1997.--Notwithstanding 
subsections (a) and (b), in fiscal year 1997, amounts in excess 
of $75,000,000 that are collected in fees pursuant to section 
45301(a)(1) of this title shall be available for the [essential 
air] small community air service program under this subchapter, 
in addition to amounts specifically provided for in 
appropriations Acts.

         SUBCHAPTER III--REGIONAL AIR SERVICE INCENTIVE PROGRAM

Sec. 41761. Purpose

  The purpose of this subchapter is to improve service by jet 
aircraft to underserved markets by providing assistance, in the 
form of Federal credit instruments, to commuter air carriers 
that purchase regional jet aircraft for use in serving those 
markets.

Sec. 41762. Definitions

  In this subchapter, the following definitions apply:
          (1) Air carrier.--The term ``air carrier'' means any 
        air carrier holding a certificate of public convenience 
        and necessity issued by the Secretary of Transportation 
        under section 41102.
          (2) Aircraft purchase.--The term ``aircraft 
        purchase'' means the purchase of commercial transport 
        aircraft, including spare parts normally associated 
        with the aircraft.
          (3) Capital reserve subsidy amount.--The term 
        ``capital reserve subsidy amount'' means the amount of 
        budget authority sufficient to cover estimated long-
        term cost to the United States Government of a Federal 
        credit instrument, calculated on a net present value 
        basis, excluding administrative costs and any 
        incidental effects on government receipts or outlays in 
        accordance with provisions of the Federal Credit Reform 
        Act of 1990 (2 U.S.C. 661 et seq).
          (4) Commuter air carrier.--The term ``commuter air 
        carrier'' means an air carrier that primarily operates 
        aircraft designed to have a maximum passenger seating 
        capacity of 75 or less in accordance with published 
        flight schedules.
          (5) Federal credit instrument.--The term ``Federal 
        credit instrument'' means a secured loan, loan 
        guarantee, or line of credit authorized to be made 
        under this subchapter.
          (6) Financial obligation.--The term ``financial 
        obligation'' means any note, bond, debenture, or other 
        debt obligation issued by an obligor in connection with 
        the financing of an aircraft purchase, other than a 
        Federal credit instrument.
          (7) Lender.--The term ``lender'' means any non-
        Federal qualified institutional buyer (as defined by 
        section 230.144A(a) of title 17, Code of Federal 
        Regulations (or any successor regulation) known as Rule 
        144A(a) of the Security and Exchange Commission and 
        issued under the Security Act of 1933 (15 U.S.C. 77a et 
        seq.)), including--
                  (A) a qualified retirement plan (as defined 
                in section 4974(c) of the Internal Revenue Code 
                of 1986) that is a qualified institutional 
                buyer; and
                  (B) a governmental plan (as defined in 
                section 414(d) of the Internal Revenue Code of 
                1986) that is a qualified institutional buyer.
          (8) Line of credit.--The term ``line of credit'' 
        means an agreement entered into by the Secretary with 
        an obligor under section 41763(d) to provide a direct 
        loan at a future date upon the occurrence of certain 
        events.
          (9) Loan guarantee.--The term ``loan guarantee'' 
        means any guarantee or other pledge by the Secretary 
        under section 41763(c) to pay all or part of any of the 
        principal of and interest on a loan or other debt 
        obligation issued by an obligor and funded by a lender.
          (10) New entrant air carrier.--The term ``new entrant 
        air carrier'' means an air carrier that has been 
        providing air transportation according to a published 
        schedule for less than 5 years, including any person 
        that has received authority from the Secretary to 
        provide air transportation but is not providing air 
        transportation.
          (11) Nonhub airport.--The term ``nonhub airport'' 
        means an airport that each year has less than .05 
        percent of the total annual boardings in the United 
        States.
          (12) Obligor.--The term ``obligor'' means a party 
        primarily liable for payment of the principal of or 
        interest on a Federal credit instrument, which party 
        may be a corporation, partnership, joint venture, 
        trust, or governmental entity, agency, or 
        instrumentality.
          (13) Regional jet aircraft.--The term ``regional jet 
        aircraft'' means a civil aircraft--
                  (A) powered by jet propulsion; and
                  (B) designed to have a maximum passenger 
                seating capacity of not less than 30 nor more 
                than 75.
          (14) Secured loan.--The term ``secured loan'' means a 
        direct loan funded by the Secretary in connection with 
        the financing of an aircraft purchase under section 
        41763(b).
          (15) Small hub airport.--The term ``small hub 
        airport'' means an airport that each year has at least 
        .05 percent, but less than .25 percent, of the total 
        annual boardings in the United States.
          (16) Underserved market.--The term ``underserved 
        market'' means a passenger air transportation market 
        (as defined by the Secretary) that--
                  (A) is served (as determined by the 
                Secretary) by a nonhub airport or a small hub 
                airport;
                  (B) is not within a 40-mile radius of an 
                airport that each year has at least .25 percent 
                of the total annual boardings in the United 
                States; and
                  (C) the Secretary determines does not have 
                sufficient air service.

Sec. 41763. Federal credit instruments

  (a) In General.--Subject to this section, the Secretary of 
Transportation may enter into agreements with 1 or more 
obligors to make available Federal credit instruments, the 
proceeds of which shall be used to finance aircraft purchases.
  (b) Secured Loans.--
          (1) Terms and limitations.--
                  (A) In general.--A secured loan under this 
                section with respect to an aircraft purchase 
                shall be on such terms and conditions and 
                contain such covenants, representatives, 
                warranties, and requirements (including requirements 
                for audits) as the Secretary determines appropriate.
                  (B) Maximum amount.--No secured loan may be 
                made under this section--
                          (i) that extends to more than 50 
                        percent of the purchase price 
                        (including the value of any 
                        manufacturer credits, post-purchase 
                        options, or other discounts) of the 
                        aircraft, including spare parts, to be 
                        purchased; or
                          (ii) that, when added to the 
                        remaining balance on any other Federal 
                        credit instruments made under this 
                        subchapter, provides more than 
                        $100,000,000 of outstanding credit to 
                        any single obligor.
                  (C) Final payment date.--The final payment on 
                of the secured loan shall not be due later than 
                18 years after the date of execution of the 
                loan agreement.
                  (D) Subordination.--The secured loan may be 
                subordinate to claims of other holders of 
                obligations in the event of bankruptcy, 
                insolvency, or liquidation of the obligor as 
                determined appropriate by the Secretary.
                  (E) Fees.--The Secretary may establish fees 
                at a level sufficient to cover all or a portion 
                of the costs to the United States Government of 
                making a secured loan under this section. The 
                proceeds of such fees shall be deposited in an 
                account to be used by the Secretary for the 
                purpose of administering the program 
                established under this subchapter and shall be 
                available upon deposit until expended.
          (2) Repayment.--
                  (A) Schedule.--The Secretary shall establish 
                a repayment schedule for each secured loan 
                under this section based on the projected cash 
                flow from aircraft revenues and other repayment 
                sources.
                  (B) Commencement.--Scheduled loan repayments 
                of principal and interest on a secured loan 
                under this section shall commence no later than 
                3 years after the date of execution of the loan 
                agreement.
          (3) Prepayment.--
                  (A) Use of excess revenue.--After satisfying 
                scheduled debt service requirements on all 
                financial obligations and secured loans and all 
                deposit requirements under the terms of any 
                trust agreement, bond resolution, or similar 
                agreement securing financial obligations, the 
                secured loan may be prepaid at anytime without 
                penalty.
                  (B) Use of proceeds of refinancing.--The 
                secured loan may be prepaid at any time without 
                penalty from proceeds of refinancing from non-
                Federal funding sources.
  (c) Loan Guarantees.--
          (1) In general.--A loan guarantee under this section 
        with respect to a loan made for an aircraft purchase 
        shall be made in such form and on such terms and 
        conditions and contain such covenants, representatives, 
        warranties, and requirements (including requirements 
        for audits) as the Secretary determines appropriate.
          (2) Maximum amount.--No loan guarantee shall be made 
        under this section--
                  (A) that extends to more than the unpaid 
                interest and 50 percent of the unpaid principal 
                on any loan;
                  (B) that, for any loan or combination of 
                loans, extends to more than 50 percent of the 
                purchase price (including the value of any 
                manufacturer credits, post-purchase options, or 
                other discounts) of the aircraft, including 
                spare parts, to be purchased with the loan or 
                loan combination;
                  (C) on any loan with respect to which terms 
                permit repayment more than 15 years after the 
                date of execution of the loan; or
                  (D) that, when added to the remaining balance 
                on any other Federal credit instruments made 
                under this subchapter, provides more than 
                $100,000,000 of outstanding credit to any 
                single obligor.
          (3) Fees.--The Secretary may establish fees at a 
        level sufficient to cover all or a portion of the costs 
        to the United States Government of making a loan 
        guarantee under this section. The proceeds of such fees 
        shall be deposited in an account to be used by the 
        Secretary for the purpose of administering the program 
        established under this subchapter and shall be 
        available upon deposit until expended.
  (d) Lines of Credit.--
          (1) In general.--Subject to the requirements of this 
        subsection, the Secretary may enter into agreements to 
        make available lines of credit to 1 or more obligors in 
        the form of direct loans to be made by the Secretary at 
        future dates on the occurrence of certain events for 
        any aircraft purchase selected under this section.
          (2) Terms and limitations.--
                  (A) In general.--A line of credit under this 
                subsection with respect to an aircraft purchase 
                shall be on such terms and conditions and 
                contain such covenants, representatives, 
                warranties, and requirements (including 
                requirements for audits) as the Secretary 
                determines appropriate.
                  (B) Maximum amount.--
                          (i) Total amount.--The amount of any 
                        line of credit shall not exceed 50 
                        percent of the purchase price 
                        (including the value of any 
                        manufacturer credits, post-purchase 
                        options, or other discounts) of the 
                        aircraft, including spare parts.
                          (ii) 1-year draws.--The amount drawn 
                        in any year shall not exceed 20 percent 
                        of the total amount of the line of 
                        credit.
                  (C) Draws.--Any draw on the line of credit 
                shall represent a direct loan.
                  (D) Period of availability.--The line of 
                credit shall be available not more than 5 years 
                after the aircraft purchase date.
                  (E) Rights of third-party creditors.--
                          (i) Against united states 
                        government.--A third-party creditor of 
                        the obligor shall not have any right 
                        against the United States Government 
                        with respect to any draw on the line of 
                        credit.
                          (ii) Assignment.--An obligor may 
                        assign the line of credit to 1 or more 
                        lenders or to a trustee on the lender's 
                        behalf.
                  (F) Subordination.--A direct loan under this 
                subsection may be subordinate to claims of 
                other holders of obligations in the event of 
                bankruptcy, insolvency, or liquidation of the 
                obligor as determined appropriate by the 
                Secretary.
                  (G) Fees.--The Secretary may establish fees 
                at a level sufficient to cover all of a portion 
                of the costs to the United States Government of 
                providing a line of credit under this 
                subsection. The proceeds of such fees shall be 
                deposited in an account to be used by the 
                Secretary for the purpose of administering the 
                program established under this subchapter and 
                shall be available upon deposit until expended.
          (3) Repayment.--
                  (A) Schedule.--The Secretary shall establish 
                a repayment schedule for each direct loan under 
                this subsection.
                  (B) Commencement.--Scheduled loan repayments 
                of principal or interest on a direct loan under 
                this subsection shall commence no later than 3 
                years after the date of the first draw on the 
                line of credit and shall be repaid, with 
                interest, not later than 18 years after the 
                date of the first draw.
  (e) Risk Assessment.--Before entering into an agreement under 
this section to make available a Federal credit instrument, the 
Secretary, in consultation with the Director of the Office of 
Management and Budget, shall determine an appropriate capital 
reserve subsidy amount for the Federal credit instrument based 
on such credit evaluations as the Secretary deems necessary.
  (f) Conditions.--Subject to subsection (h), the Secretary may 
only make a Federal credit instrument available under this 
section if the Secretary finds that--
          (1) the aircraft to be purchased with the Federal 
        credit instrument is a regional jet aircraft needed to 
        improve the service and efficiency of operation of a 
        commuter air carrier or new entrant air carrier;
          (2) the commuter air carrier or new entrant air 
        carrier enters into a legally binding agreement that 
        requires the carrier to use the aircraft to provide 
        service to underserved markets; and
          (3) the prospective earning power of the commuter air 
        carrier or new entrant air carrier, together with the 
        character and value of the security pledged, including 
        the collateral value of the aircraft being acquired and 
        any other assets or pledges used to secure the Federal 
        credit instrument, furnish--
                  (A) reasonable assurances of the air 
                carrier's ability and intention to repay the 
                Federal credit instrument within the terms 
                established by the Secretary--
                          (i) to continue its operations as an 
                        air carrier; and
                          (ii) to the extent that the Secretary 
                        determines to be necessary, to continue 
                        its operations as an air carrier 
                        between the same route or routes being 
                        operated by the air carrier at the time 
                        of the issuance of the Federal credit 
                        instrument; and
                  (B) reasonable protection to the United 
                States.
  (g) Limitation on Combined Amount of Federal Credit 
Instruments.--The Secretary shall not allow the combined amount 
of Federal credit instruments available for any aircraft 
purchase under this section to exceed--
          (1) 50 percent of the cost of the aircraft purchase; 
        or
          (2) $100,000,000 for any single obligor.
  (h) Requirement.--Subject to subsection (i), no Federal 
credit instrument may be made under this section for the 
purchase of any regional jet aircraft that does not comply with 
the stage 3 noise levels of part 36 of title 14 of the Code of 
Federal Regulations, as in effect on January 1, 1999.
  (i) Other Limitations.--No Federal credit instrument shall be 
made by the Secretary under this section for the purchase of a 
regional jet aircraft unless the commuter air carrier or new 
entrant air carrier enters into a legally binding agreement 
that requires the carrier to provide scheduled passenger air 
transportation to the underserved market for which the aircraft 
is purchased for a period of not less than 36 consecutive 
months after the date that aircraft is placed in service.

Sec. 41764. Use of Federal facilities and assistance

  (a) Use of Federal Facilities.--To permit the Secretary of 
Transportation to make use of such expert advice and services 
as the Secretary may require in carrying out this subchapter, 
the Secretary may use available services and facilities of 
other agencies and instrumentalities of the United States 
Government--
          (1) with the consent of the appropriate Federal 
        officials; and
          (2) on a reimbursable basis.
  (b) Assistance.--The head of each appropriate department or 
agency of the United States Government shall exercise the 
duties and powers of that head in such manner as to assist in 
carrying out the policy specified in section 41761.
  (c) Oversight.--The Secretary shall make available to the 
Comptroller General of the United States such information with 
respect to any Federal credit instrument made under this 
subchapter as the Comptroller General may require to carry out 
the duties of the Comptroller General under chapter 7 of title 
31.

Sec. 41765. Administrative expenses

  In carrying out this subchapter, the Secretary shall use 
funds made available by appropriations to the Department of 
Transportation for the purpose of administration, in addition 
to the proceeds of any fees collected under this subchapter, to 
cover administrative expenses of the Federal credit instrument 
program under this subchapter.

Sec. 41766. Funding

  Of the amounts appropriated under section 106(k) for each of 
fiscal years 2001 through 2004, such sums as may be necessary 
may be used to carry out this subchapter, including 
administrative expenses.

Sec. 41767. Termination

  (a) Authority To Issue Federal Credit Instruments.--The 
authority of the Secretary of Transportation to issue Federal 
credit instruments under section 41763 shall terminate on the 
date that is 5 years after the date of the enactment of this 
subchapter.
  (b) Continuation of Authority To Administer Program for 
Existing Federal Credit Instruments.--On and after the 
termination date, the Secretary shall continue to administer 
the program established under this subchapter for Federal 
credit instruments issued under this subchapter before the 
termination date until all obligations associated with such 
instruments have been satisfied.

           *       *       *       *       *       *       *


                CHAPTER 421--LABOR-MANAGEMENT PROVISIONS

           *       *       *       *       *       *       *


            SUBCHAPTER III--WHISTLEBLOWER PROTECTION PROGRAM

42121. Protection of employees providing air safety information.

           *       *       *       *       *       *       *


            SUBCHAPTER III--WHISTLEBLOWER PROTECTION PROGRAM

Sec. 42121. Protection of employees providing air safety information

  (a) Discrimination Against Airline Employees.--No air carrier 
or contractor or subcontractor of an air carrier may 
dischargean employee or otherwise discriminate against an employee with 
respect to compensation, terms, conditions, or privileges of employment 
because the employee (or any person acting pursuant to a request of the 
employee)--
          (1) provided, caused to be provided, or is about to 
        provide (with any knowledge of the employer) or cause 
        to be provided to the employer or Federal Government 
        information relating to any violation or alleged 
        violation of any order, regulation, or standard of the 
        Federal Aviation Administration or any other provision 
        of Federal law relating to air carrier safety under 
        this subtitle or any other law of the United States;
          (2) has filed, caused to be filed, or is about to 
        file (with any knowledge of the employer) or cause to 
        be filed a proceeding relating to any violation or 
        alleged violation of any order, regulation, or standard 
        of the Federal Aviation Administration or any other 
        provision of Federal law relating to air carrier safety 
        under this subtitle or any other law of the United 
        States;
          (3) testified or is about to testify in such a 
        proceeding; or
          (4) assisted or participated or is about to assist or 
        participate in such a proceeding.
  (b) Department of Labor Complaint Procedure.--
          (1) Filing and notification.--A person who believes 
        that he or she has been discharged or otherwise 
        discriminated against by any person in violation of 
        subsection (a) may, not later than 90 days after the 
        date on which such violation occurs, file (or have any 
        person file on his or her behalf) a complaint with the 
        Secretary of Labor alleging such discharge or 
        discrimination. Upon receipt of such a complaint, the 
        Secretary of Labor shall notify, in writing, the person 
        named in the complaint and the Administrator of the 
        Federal Aviation Administration of the filing of the 
        complaint, of the allegations contained in the 
        complaint, of the substance of evidence supporting the 
        complaint, and of the opportunities that will be 
        afforded to such person under paragraph (2).
          (2) Investigation; preliminary order.--
                  (A) In general.--Not later than 60 days after 
                the date of receipt of a complaint filed under 
                paragraph (1) and after affording the person 
                named in the complaint an opportunity to submit 
                to the Secretary of Labor a written response to 
                the complaint and an opportunity to meet with a 
                representative of the Secretary to present 
                statements from witnesses, the Secretary of 
                Labor shall conduct an investigation and 
                determine whether there is reasonable cause to 
                believe that the complaint has merit and 
                notify, in writing, the complainant and the 
                person alleged to have committed a violation of 
                subsection (a) of the Secretary's findings. If 
                the Secretary of Labor concludes that there is 
                a reasonable cause to believe that a violation 
                of subsection (a) has occurred, the Secretary 
                shall accompany the Secretary's findings with a 
                preliminary order providing the relief 
                prescribed by paragraph (3)(B). Not later than 
                30 days after the date of notification of 
                findings under this paragraph, either the 
                person alleged to have committed the violation 
                or the complainant may file objections to the 
                findings or preliminary order, or both, and 
                request a hearing on the record. The filing of 
                such objections shall not operate to stay any 
                reinstatement remedy contained in the 
                preliminary order. Such hearings shall be 
                conducted expeditiously. If a hearing is not 
                requested in such 30-day period, the 
                preliminary order shall be deemed a final order 
                that is not subject to judicial review.
                  (B) Requirements.--
                          (i) Required showing by 
                        complainant.--The Secretary of Labor 
                        shall dismiss a complaint filed under 
                        this subsection and shall not conduct 
                        an investigation otherwise required 
                        under subparagraph (A) unless the 
                        complainant makes a prima facie showing 
                        that any behavior described in 
                        paragraphs (1) through (4) of 
                        subsection (a) was a contributing 
                        factor in the unfavorable personnel 
                        action alleged in the complaint.
                          (ii) Showing by employer.--
                        Notwithstanding a finding by the 
                        Secretary that the complainant has made 
                        the showing required under clause (i), 
                        no investigation otherwise required 
                        under subparagraph (A) shall be 
                        conducted if the employer demonstrates, 
                        by clear and convincing evidence, that 
                        the employer would have taken the same 
                        unfavorable personnel action in the 
                        absence of that behavior.
                          (iii) Criteria for determination by 
                        secretary.--The Secretary may determine 
                        that a violation of subsection (a) has 
                        occurred only if the complainant 
                        demonstrates that any behavior 
                        described in paragraphs (1) through (4) 
                        of subsection (a) was a contributing 
                        factor in the unfavorable personnel 
                        action alleged in the complaint.
                          (iv) Prohibition.--Relief may not be 
                        ordered under subparagraph (A) if the 
                        employer demonstrates by clear and 
                        convincing evidence that the employer 
                        would have taken the same unfavorable 
                        personnel action in the absence of that 
                        behavior.
          (3) Final order.--
                  (A) Deadline for issuance; settlement 
                agreements.--Not later than 120 days after the 
                date of conclusion of a hearing under paragraph 
                (2), the Secretary of Labor shall issue a final 
                order providing the relief prescribed by this 
                paragraph or denying the complaint. At any time 
                before issuance of a final order, a proceeding 
                under this subsection may be terminated on the 
                basis of a settlement agreement entered into by 
                the Secretary of Labor, the complainant, and 
                the person alleged to have committed the 
                violation.
                  (B) Remedy.--If, in response to a complaint 
                filed under paragraph (1), the Secretary of 
                Labor determines that a violation of subsection 
                (a) has occurred, the Secretary of Labor shall 
                order the person who committed such violation 
                to--
                          (i) take affirmative action to abate 
                        the violation;
                          (ii) reinstate the complainant to his 
                        or her former position together with 
                        the compensation (including back pay) 
                        and restore the terms, conditions, and 
                        privileges associated with his or her 
                        employment; and
                          (iii) provide compensatory damages to 
                        the complainant.
                If such an order is issued under this 
                paragraph, the Secretary of Labor, at the 
                request of the complainant, shall assess 
                against the person against whom the order is 
                issued a sum equal to the aggregate amount of 
                all costs and expenses (including attorneys' 
                and expert witness fees) reasonably incurred, 
                as determined by the Secretary of Labor, by the 
                complainant for, or in connection with, the 
                bringing the complaint upon which the order was 
                issued.
                  (C) Frivolous complaints.--If the Secretary 
                of Labor finds that a complaint under paragraph 
                (1) is frivolous or has been brought in bad 
                faith, the Secretary of Labor may award to the 
                prevailing employer a reasonable attorney's fee 
                not exceeding $5,000.
          (4) Review.--
                  (A) Appeal to court of appeals.--Any person 
                adversely affected or aggrieved by an order 
                issued under paragraph (3) may obtain review of 
                the order in the United States Court of Appeals 
                for the circuit in which the violation, with 
                respect to which the order was issued, 
                allegedly occurred or the circuit in which the 
                complainant resided on the date of such 
                violation. The petition for review must be 
                filed not later than 60 days after the date of 
                the issuance of the final order of the 
                Secretary of Labor. Review shall conform to 
                chapter 7 of title 5. The commencement of 
                proceedings under this subparagraph shall not, 
                unless ordered by the court, operate as a stay 
                of the order.
                  (B) Limitation on collateral attack.--An 
                order of the Secretary of Labor with respect to 
                which review could have been obtained under 
                subparagraph (A) shall not be subject to 
                judicial review in any criminal or other civil 
                proceeding.
          (5) Enforcement of order by secretary of labor.--
        Whenever a person has failed to comply with an order 
        issued under paragraph (3), the Secretary of Labor may 
        file a civil action in the United States district court 
        for the district in which the violation was found to 
        occur to enforce such order. In actions brought under 
        this paragraph, the district courts shall have 
        jurisdiction to grant all appropriate relief including, 
        but not limited to, injunctive relief and compensatory 
        damages.
          (6) Enforcement of order by parties.--
                  (A) Commencement of action.--A person on 
                whose behalf an order was issued under 
                paragraph (3) may commence a civil action 
                against the person to whom such order was 
                issued to require compliance with such order. 
                The appropriate United States district court 
                shall have jurisdiction, without regard to the 
                amount in controversy or the citizenship of the 
                parties, to enforce such order.
                  (B) Attorney fees.--The court, in issuing any 
                final order under this paragraph, may award 
                costs of litigation (including reasonable 
                attorney and expert witness fees) to any party 
                whenever the court determines such award is 
                appropriate.
  (c) Mandamus.--Any nondiscretionary duty imposed by this 
section shall be enforceable in a mandamus proceeding brought 
under section 1361 of title 28.
  (d) Nonapplicability to Deliberate Violations.--Subsection 
(a) shall not apply with respect to an employee of an air 
carrier, contractor, or subcontractor who, acting without 
direction from such air carrier, contractor, or subcontractor 
(or such person's agent), deliberately causes a violation of 
any requirement relating to air carrier safety under this 
subtitle or any other law of the United States.
  (e) Contractor Defined.--In this section, the term 
``contractor'' means a company that performs safety-sensitive 
functions by contract for an air carrier.

           *       *       *       *       *       *       *


                          SUBPART III--SAFETY

           *       *       *       *       *       *       *


                        CHAPTER 443--INSURANCE

           *       *       *       *       *       *       *


Sec. 44310. Ending effective date

  The authority of the Secretary of Transportation to provide 
insurance and reinsurance under this chapter is not effective 
after [August 6, 1999] December 31, 2004.

           CHAPTER 445--FACILITIES, PERSONNEL, AND RESEARCH

           *       *       *       *       *       *       *


Sec. 44502. General facilities and personnel authority

  (a) General Authority.--(1)  * * *

           *       *       *       *       *       *       *

          (4) Purchase of instrument landing system.--
                  (A)  * * *
                  (B) Authorization.--No less than $30,000,000 
                of the amounts appropriated under section 
                48101(a) for [each of fiscal years 1995 and 
                1996] each of fiscal years 1999 through 2004 
                shall be used for the purpose of carrying out 
                this paragraph, including acquisition under new 
                or existing contracts, site preparation work, 
                installation, and related expenditures.
          (5) Maintenance and upgrade of loran-c navigation 
        facilities.--The Secretary shall maintain and upgrade 
        Loran-C navigation facilities throughout the transition 
        period to satellite-based navigation.
          (6) Improvements on leased properties.--The 
        Administrator may make improvements to real property 
        leased for no or nominal consideration for an air 
        navigation facility, regardless of whether the cost of 
        making the improvements exceeds the cost of leasing the 
        real property, if--
                  (A) the improvements primarily benefit the 
                Government;
                  (B) the improvements are essential for 
                accomplishment of the mission of the Federal 
                Aviation Administration; and
                  (C) the interest of the Government in the 
                improvements is protected.

           *       *       *       *       *       *       *


                     CHAPTER 447--SAFETY REGULATION

Sec.
44701.  General requirements.
     * * * * * * *
44725.  Life-limited aircraft parts.

           *       *       *       *       *       *       *


Sec. 44701. General requirements

  (a)  * * *

           *       *       *       *       *       *       *

  (e) Bilateral Exchanges of Safety Oversight 
Responsibilities.--
          (1) In general.--Notwithstanding the provisions of 
        this chapter, the Administrator, pursuant to Article 83 
        bis of the Convention on International Civil Aviation 
        and by a bilateral agreement with the aeronautical 
        authorities of another country, may exchange with that 
        country all or part of their respective functions and 
        duties with respect to registered aircraft under the 
        following articles of the Convention: Article 12 (Rules 
        of the Air); Article 31 (Certificates of 
        Airworthiness); or Article 32a (Licenses of Personnel).
          (2) Relinquishment and acceptance of 
        responsibility.--The Administrator relinquishes 
        responsibility with respect to the functions and duties 
        transferred by the Administrator as specified in the 
        bilateral agreement, under the Articles listed in 
        paragraph (1) for United States-registered aircraft 
        described in paragraph (4)(A) transferred abroad and 
        accepts responsibility with respect to the functions 
        and duties under those Articles for aircraft registered 
        abroad and described in paragraph (4)(B) that are 
        transferred to the United States.
          (3) Conditions.--The Administrator may predicate, in 
        the agreement, the transfer of functions and duties 
        under this subsection on any conditions the 
        Administrator deems necessary and prudent, except that 
        the Administrator may not transfer responsibilities for 
        United States registered aircraft described in 
        paragraph (4)(A) to a country that the Administrator 
        determines is not in compliance with its obligations 
        under international law for the safety oversight of 
        civil aviation.
          (4) Registered aircraft defined.--In this subsection, 
        the term ``registered aircraft'' means--
                  (A) aircraft registered in the United States 
                and operated pursuant to an agreement for the 
                lease, charter, or interchange of the aircraft 
                or any similar arrangement by an operator that 
                has its principal place of business or, if it 
                has no such place of business, its permanent 
                residence in another country; or
                  (B) aircraft registered in a foreign country 
                and operated under an agreement for the lease, 
                charter, or interchange of the aircraft or any 
                similar arrangement by an operator that has its 
                principal place of business or, if it has no 
                such place of business, its permanent residence 
                in the United States.
  [(e)] (f) Exemptions.--The Administrator may grant an 
exemption from a requirement of a regulation prescribed under 
subsection (a) or (b) of this section or any of sections 44702-
44716 of this title if the Administrator finds the exemption is 
in the public interest.
  (g) Safety Risk Management Program Guidelines.--The 
Administrator shall issue guidelines and encourage the 
development of air safety risk mitigation programs throughout 
the aviation industry, including self-audits and self-
disclosure programs.

           *       *       *       *       *       *       *


Sec. 44703. Airman certificates

  (a)  * * *

           *       *       *       *       *       *       *

  (c) Public Information.--
          (1) In general.--Subject to paragraph (2) and 
        notwithstanding any other provision of law, the 
        information contained in the records of contents of any 
        airman certificate issued under this section that is 
        limited to an airman's name, address, date of birth, 
        and ratings held shall be made available to the public 
        after the 120th day following the date of enactment of 
        the Aviation Investment and Reform Act for the 21st 
        Century.
          (2) Opportunity to withhold information.--Before 
        making any information concerning an airman available 
        to the public under paragraph (1), the airman shall be 
        given an opportunity to elect that the information not 
        be made available to the public.
          (3) Development and implementation of program.--Not 
        later than 60 days after the date of enactment of the 
        Aviation Investment and Reform Act for the 21st 
        Century, the Administrator shall develop and implement, 
        in cooperation with representatives of the aviation 
        industry, a one-time written notification to airmen to 
        set forth the implications of making information 
        concerning an airman available to the public under 
        paragraph (1) and to carry out paragraph (2).
  [(c)] (d) Appeals.--(1) An individual whose application for 
the issuance or renewal of an airman certificate has been 
denied may appeal the denial to the National Transportation 
Safety Board, except if the individual holds a certificate 
that--
          (A) * * *

           *       *       *       *       *       *       *

  [(d)] (e) Restrictions and Prohibitions.--The Administrator 
of the Federal Aviation Administration may--
          (1) * * *

           *       *       *       *       *       *       *

  [(e)] (f) Controlled Substance Violations.--The Administrator 
of the Federal Aviation Administration may not issue an airman 
certificate to an individual whose certificate is revoked under 
section 44710 of this title except--
          (1) * * *

           *       *       *       *       *       *       *

  [(f)] (g) Modifications in System.--(1) The Administrator of 
the Federal Aviation Administration shall make modifications in 
the system for issuing airman certificates necessary to make 
the system more effective in serving the needs of pilots and 
officials responsible for enforcing laws related to the 
regulation of controlled substances (as defined in section 102 
of the Comprehensive Drug Abuse Prevention and Control Act of 
1970 (21 U.S.C. 802)). The modifications shall ensure positive 
and verifiable identification of each individual applying for 
or holding a certificate and shall address at least each of the 
following deficiencies in, and abuses of, the existing system:
          (A) * * *

           *       *       *       *       *       *       *


Sec. 44706. Airport operating certificates

  (a)  * * *

           *       *       *       *       *       *       *

  (g) Included Charter Air Transportation.--For the purposes of 
subsection (a)(2), a scheduled passenger operation includes 
charter air transportation for which the general public is 
provided in advance a schedule containing the departure 
location, departure time, and arrival location of the flights.
  (h) Authority To Preclude Scheduled Passenger Operations.--
The Administrator shall permit an airport that will be subject 
to certification under subsection (a)(2) to preclude scheduled 
passenger operations (including public charter operations 
described in subsection (g)) at the airport if the airport 
notifies the Administrator, in writing, that it does not intend 
to obtain an airport operating certificate.

Sec. 44709. Amendments, modifications, suspensions, and revocations of 
                    certificates

  (a)  * * *

           *       *       *       *       *       *       *

  [(e) Effectiveness of Orders Pending Appeal.--When a person 
files an appeal with the Board under subsection (d) of the 
section, the order of the Administrator is stayed. However, if 
the Administrator advises the Board that an emergency exists 
and safety in air commerce or air transportation requires the 
order to be effective immediately--
          [(1) the order is effective; and
          [(2) the Board shall make a final disposition of the 
        appeal not later than 60 days after the Administrator 
        so advises the Board.]
  (e) Effectiveness of Orders Pending Appeal.--
          (1) In general.--Except as provided in paragraph (2), 
        if a person files an appeal with the Board under 
        section (d), the order of the Administrator is stayed.
          (2) Emergencies.--If the Administrator advises the 
        Board that an emergency exists and safety in air 
        commerce or air transportation requires the order to be 
        effective immediately, the order is effective, except 
        that a person filing an appeal under subsection (d) may 
        file a written petition to the Board for an emergency 
        stay on the issues of the appeal that are related to 
        the existence of the emergency. The Board shall have 10 
        days to review the materials. If any 2 members of the 
        Board determine that sufficient grounds exist to grant 
        a stay, an emergency stay shall be granted. If an 
        emergency stay is granted, the Board must meet within 
        15 days of the granting of the stay to make a final 
        disposition of the issues related to the existence of 
        the emergency.
          (3) Final disposition of appeal.--In all cases, the 
        Board shall make a final disposition of the merits of 
        the appeal not later than 60 days after the 
        Administrator advises the Board of the order.

           *       *       *       *       *       *       *


Sec. 44712. Emergency locator transmitters

  (a)  * * *

           *       *       *       *       *       *       *

  [(b) Nonapplication.--Subsection (a) of this section does not 
apply to--
          [(1) turbojet-powered aircraft;
          [(2) aircraft when used in scheduled flights by 
        scheduled air carriers holding certificates issued by 
        the Secretary of Transportation under subpart II of 
        this part;
          [(3) aircraft when used in training operations 
        conducted entirely within a 50 mile radius of the 
        airport from which the training operations begin;
          [(4) aircraft when used in flight operations related 
        to design and testing, the manufacture, preparation, 
        and delivery of the aircraft, or the aerial application 
        of a substance for an agricultural purpose;
          [(5) aircraft holding certificates from the 
        Administrator of the Federal Aviation Administration 
        for research and development;
          [(6) aircraft when used for showing compliance with 
        regulations, crew training, exhibition, air racing, or 
        market surveys; and
          [(7) aircraft equipped to carry only one individual.
  (b) Nonapplication.--Subsection (a) does not apply to--
          (1) aircraft when used in scheduled flights by 
        scheduled air carriers holding certificates issued by 
        the Secretary of Transportation under subpart II of 
        this part;
          (2) aircraft when used in training operations 
        conducted entirely within a 50-mile radius of the 
        airport from which the training operations begin;
          (3) aircraft when used in flight operations related 
        to the design and testing, manufacture, preparation, 
        and delivery of aircraft;
          (4) aircraft when used in research and development if 
        the aircraft holds a certificate from the Administrator 
        of the Federal Aviation Administration to carry out 
        such research and development;
          (5) aircraft when used in showing compliance with 
        regulations crew training, exhibition, air racing, or 
        market surveys;
          (6) aircraft when used in the aerial application of a 
        substance for an agricultural purpose;
          (7) aircraft with a maximum payload capacity of more 
        than 7,500 pounds when used in air transportation; or
          (8) aircraft capable of carrying only one individual.
  (c) Compliance.--An aircraft meets the requirement of 
subsection (a) if it is equipped with an emergency locator 
transmitter that transmits on the 121.5/243 megahertz frequency 
or the 406 megahertz frequency, or with other equipment 
approved by the Secretary for meeting the requirement of 
subsection (a).
  [(c)] (d) Removal.--The Administrator shall prescribe 
regulations specifying the conditions under which an aircraft 
subject to subsection (a) of this section may operate when its 
emergency locator transmitter has been removed for inspection, 
repair, alteration, or replacement.

           *       *       *       *       *       *       *


Sec. 44725. Life-limited aircraft parts

  (a) In General.--The Administrator of the Federal Aviation 
Administration shall conduct a rulemaking proceeding to require 
the safe disposition of life-limited parts removed from an 
aircraft. The rulemaking proceeding shall ensure that the 
disposition deter installation on an aircraft of a life-limited 
part that has reached or exceeded its life limits.
  (b) Safe Disposition.--For the purposes of this section, safe 
disposition includes any of the following methods:
          (1) The part may be segregated under circumstances 
        that preclude its installation on an aircraft.
          (2) The part may be permanently marked to indicate 
        its used life status.
          (3) The part may be destroyed in any manner 
        calculated to prevent reinstallation in an aircraft.
          (4) The part may be marked, if practicable, to 
        include the recordation of hours, cycles, or other 
        airworthiness information. If the parts are marked with 
        cycles or hours of usage, that information must be 
        updated when the part is retired from service.
          (5) Any other method approved by the Administrator.
  (c) Deadlines.--In conducting the rulemaking proceeding under 
subsection (a), the Administrator shall--
          (1) not later than 180 days after the date of 
        enactment of this section, issue a notice of proposed 
        rulemaking; and
          (2) not later than 180 days after the close of the 
        comment period on the proposed rule, issue a final 
        rule.
  (d) Prior-Removed Life-Limited Parts.--No rule issued under 
subsection (a) shall require the marking of parts removed 
before the effective date of the rules issued under subsection 
(a), nor shall any such rule forbid the installation of an 
otherwise airworthy life-limited part.

           *       *       *       *       *       *       *


                         CHAPTER 449--SECURITY

           *       *       *       *       *       *       *


                      SUBCHAPTER I--REQUIREMENTS

           *       *       *       *       *       *       *


Sec. 44903. Air transportation security

  (a)  * * *

           *       *       *       *       *       *       *

  (f) Government and Industry Consortia.--The Administrator may 
establish at individual airports such consortia of government 
and aviation industry representatives as the Administrator may 
designate to provide advice on matters related to aviation 
security and safety. Such consortia shall not be considered 
Federal advisory committees.

           *       *       *       *       *       *       *


Sec. 44909. Passenger manifests

  (a) Air Carrier Requirements.--(1)  * * *

           *       *       *       *       *       *       *

  (2) The passenger manifest [shall] should include the 
following information:
          (A)  * * *

           *       *       *       *       *       *       *


              SUBCHAPTER II--ADMINISTRATION AND PERSONNEL

Sec. 44936. Employment investigations and restrictions

  (a)  * * *

           *       *       *       *       *       *       *

  (f) Records of Employment of Pilot Applicants.--
          (1) In general.--Subject to paragraph (14), before 
        allowing an individual to begin service as a pilot, an 
        air carrier shall request and receive the following 
        information:
                  (A)  * * *
                  (B) Air carrier and other records.--From any 
                air carrier or other person (except a branch of 
                the UnitedStates Armed Forces, the National 
Guard, or a reserve component of the United States Armed Forces) that 
has employed the individual as a pilot of a civil or public aircraft at 
any time during the 5-year period preceding the date of the employment 
application of the individual, or from the trustee in bankruptcy for 
such air carrier or person--
                          (i) * * *
                          (ii) other records pertaining to the 
                        [individual] individual's performance 
                        as a pilot that are maintained by the 
                        air carrier or person concerning--
                                  (I) the training, 
                                qualifications, proficiency, or 
                                professional competence of the 
                                individual, including comments 
                                and evaluations made by a check 
                                airman designated in accordance 
                                with section 121.411, 125.295, 
                                or 135.337 of such title;
                                  (II) any disciplinary action 
                                taken with respect to the 
                                individual that was not 
                                subsequently overturned; and
                                  (III) any release from 
                                employment or resignation, 
                                termination, or 
                                disqualification with respect 
                                to employment.

           *       *       *       *       *       *       *

          (14) Special rules with respect to certain pilots.--
                  (A) * * *
                  (B) Good faith exception.--Notwithstanding 
                paragraph (1), an air carrier, without 
                obtaining information about an individual under 
                paragraph (1)(B) from an air carrier or other 
                person that no longer exists or from a foreign 
                government or entity that employed the 
                individual, may allow the individual to begin 
                service as a pilot if the air carrier required 
                to request the information has made a 
                documented good faith attempt to obtain such 
                information.
          (15) Electronic access to faa records.--For the 
        purpose of increasing timely and efficient access to 
        Federal Aviation Administration records described in 
        paragraph (1), the Administrator may allow, under terms 
        established by the Administrator, a designated 
        individual to have electronic access to a specified 
        database containing information about such records.

           *       *       *       *       *       *       *


                           CHAPTER 453--FEES

           *       *       *       *       *       *       *


Sec. 45301. General provisions

  (a) Schedule of Fees.--The Administrator shall establish a 
schedule of new fees, and a collection process for such fees, 
for the following services provided by the Administration:
          (1)  * * *
          [(2) Services (other than air traffic control 
        services) provided to a foreign government.]
          (2) Services (other than air traffic control 
        services) provided to a foreign government or to any 
        entity obtaining services outside the United States, 
        except that the Administrator shall not impose fees in 
        any manner for production-certification related service 
        performed outside the United States pertaining to 
        aeronautical products manufactured outside the United 
        States.

           *       *       *       *       *       *       *

  (d) Production-Certification Related Service Defined.--In 
this section, the term ``production-certification related 
service'' has the meaning given that term in appendix C of part 
187 of title 14, Code of Federal Regulations.

           *       *       *       *       *       *       *


                 SUBPART IV--ENFORCEMENT AND PENALTIES

           *       *       *       *       *       *       *


                         CHAPTER 463--PENALTIES

Sec.
46301.  Civil penalties.
     * * * * * * *
[46316.  General criminal penalty when specific penalty not provided.]
46316.  Interference with cabin or flight crew.
46317.  General criminal penalty when specific penalty not provided.

           *       *       *       *       *       *       *


Sec. 46301. Civil penalties

  (a) General Penalty.--(1) A person is liable to the United 
States Government for a civil penalty of not more than $1,000 
for violating--
          (A) chapter 401 (except sections 40103(a) and (d), 
        40105, 40116, and 40117), chapter 411, chapter 413 
        (except sections 41307 and 41310(b)-(f)), chapter 415 
        (except sections 41502, 41505, and 41507-41509), 
        chapter 417 (except sections 41703, 41704, 41710, 
        41713, and 41714), chapter 419, [subchapter II of 
        chapter 421] subchapter II or III of chapter 421, 
        chapter 441 (except section 44109), section 44502(b) or 
        (c), chapter 447 (except sections 44717 and 44719-
        44723), chapter 449 (except sections 44902, 44903(d), 
        44904, 44907(a)-(d)(1)(A) and (d)(1)(C)-(f), and 
        44908), or section [46302, 46303, or] 47107(b) 
        (including any assurance made under such section) of 
        this title;
          (B) a regulation prescribed or order issued under any 
        provision to which clause (A) of this paragraph 
        applies;
          (C) any term of a certificate or permit issued under 
        section 41102, 41103, or 41302 of this title; or
          (D) a regulation of the United States Postal Service 
        under this part.

           *       *       *       *       *       *       *

  (3) A civil penalty of not more than $10,000 may be imposed 
for each violation under paragraph (1) of this subsection 
related to--
          (A) the transportation of hazardous material; [or]
          (B) the registration or recordation under chapter 441 
        of this title of an aircraft not used to provide air 
        transportation[.];
          (C) a violation of section 44725, relating to the 
        safe disposal of life-limited aircraft parts; or
          (D) a violation of section 41705, relating to 
        discrimination against handicapped individuals.

           *       *       *       *       *       *       *

  (d) Administrative Imposition of Penalties.--(1)  * * *

           *       *       *       *       *       *       *

  (7)(A) The Administrator may impose a penalty on [an 
individual] a person (except an individual acting as a pilot, 
flight engineer, mechanic, or repairman) only after notice and 
an opportunity for a hearing on the record.

           *       *       *       *       *       *       *

  (f) Compromise and Setoff.--(1)(A) The Secretary may 
compromise the amount of a civil penalty imposed for 
violating--
          (i) chapter 401 (except sections 40103(a) and (d), 
        40105, 40116, and 40117), chapter 441 (except section 
        44109), section 44502(b) or (c), chapter 447 (except 
        sections 44717 and 44719-44723), chapter 449 (except 
        sections 44902, 44903(d), 44904, 44907(a)-(d)(1)(A) and 
        (d)(1)(C)-(f), 44908, and 44909), or section 46302, 
        46303, 46316, or 47107(b) of this title; or
          (ii)  * * *

           *       *       *       *       *       *       *

  (g) Judicial Review.--An order of the Secretary or the 
Administrator imposing a civil penalty may be reviewed 
judicially only under section 46110 of this title.

           *       *       *       *       *       *       *


Sec. 46316. Interference with cabin or flight crew

  An individual who interferes with the duties or 
responsibilities of the flight crew or cabin crew of a civil 
aircraft, or who poses an imminent threat to the safety of the 
aircraft or other individuals on the aircraft, is liable to the 
United States Government for a civil penalty of not more than 
$25,000.

[Sec. 46316.] Sec. 46317. General criminal penalty when specific 
                    penalty not provided

  (a) Criminal Penalty.--Except as provided by subsection (b) 
of this section, when another criminal penalty is not provided 
under this chapter, a person that knowingly and willfully 
violates this part, a regulation prescribed or order issued by 
the Secretary of Transportation (or the Administrator of the 
Federal Aviation Administration with respect to aviation safety 
duties and powers designated to be carried out by the 
Administrator) under this part, or any term of a certificate or 
permit issued under section 41102, 41103, or 41302 of this 
title shall be fined under title 18. A separate violation 
occurs for each day the violation continues.
  (b) Nonapplication.--Subsection (a) of this section does not 
apply to chapter 401 (except sections 40103(a) and (d), 40105, 
40116, and 40117), chapter 441 (except section 44109), chapter 
445, chapter 447 (except sections 44718(a)), and chapter 449 
(except sections 44902, 44903(d), 44904, and 44907-44909) of 
this title.

           *       *       *       *       *       *       *


                 PART B--AIRPORT DEVELOPMENT AND NOISE

                    CHAPTER 471--AIRPORT DEVELOPMENT

                    SUBCHAPTER I--AIRPORT IMPROVEMENT

Sec.
47101.  Policies.
     * * * * * * *
[47132.  Pavement maintenance.]
47135.  Innovative financing techniques.
47136.  Aviation security program.
47137.  Inherently low-emission airport vehicle pilot program.
47138.  Safeguards against deficit spending.

           SUBCHAPTER II--SURPLUS PROPERTY FOR PUBLIC AIRPORTS

47151.  Authority to transfer an interest in surplus property.
[47152.  Terms of gifts.]
47152.  Terms of conveyances.
47153.  Waiving and adding terms.

                   SUBCHAPTER I--AIRPORT IMPROVEMENT

Sec. 47101. Policies

  (a) General.--It is the policy of the United States--
          (1) * * *

           *       *       *       *       *       *       *

          (11) that the airport improvement program should be 
        administered to encourage projects that employ 
        innovative technology (including integrated in-pavement 
        lighting systems for runways and taxiways and other 
        runway and taxiway incursion prevention devices), 
        concepts, and approaches that will promote safety, 
        capacity, and efficiency improvements in the 
        construction of airports and in the air transportation 
        system (including the development and use of innovative 
        concrete and other materials in the construction of 
        airport facilities to minimize initial laydown costs, 
        minimize time out of service, and maximize lifecycle 
        durability) and to encourage and solicit innovative 
        technology proposals and activities in the expenditure 
        of funding pursuant to this subchapter;

           *       *       *       *       *       *       *

  (f) Maximum Use of Safety Facilities.--This subchapter should 
be carried out consistently with a comprehensive airspace 
system plan, giving highest priority to commercial service 
airports, to maximize the use of safety facilities, including 
installing, operating, and maintaining, to the extent possible 
with available money and considering other safety needs--
          (1) * * *

           *       *       *       *       *       *       *

          (9) runway edge lighting and marking; [and]
          (10) radar approach coverage for each airport 
        terminal area[.]; and
          (11) runway and taxiway incursion prevention devices, 
        including integrated in-pavement lighting systems for 
        runways and taxiways.

           *       *       *       *       *       *       *


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) * * *

           *       *       *       *       *       *       *

                  (B) acquiring for, or installing at, a 
                public-use airport--
                          (i) * * *
                          (ii) safety or security equipment, 
                        including explosive detection devices 
                        [and universal access systems,], 
                        universal access systems, and emergency 
                        call boxes, the Secretary requires by 
                        regulation for, or approves as 
                        contributing significantly to, the 
                        safety or security of individuals and 
                        property at the airport and integrated 
                        in-pavement lighting systems for 
                        runways and taxiways and other runway 
                        and taxiway incursion prevention 
                        devices;
                          (iii) equipment to remove snow, to 
                        measure runway surface friction, or for 
                        aviation-related weather reporting, 
                        including closed circuit weather 
                        surveillance equipment;
                          (iv) firefighting and rescue 
                        equipment at an airport that serves 
                        scheduled passenger operations of air 
                        carrier aircraft designed for more than 
                        20 passenger seats;
                          (v) aircraft deicing equipment and 
                        structures (except aircraft deicing 
                        fluids and storage facilities for the 
                        equipment and fluids); [and]
                          (vi) interactive training systems[.];
                          (vii) windshear detection equipment; 
                        and
                          (viii) enhanced vision technologies 
                        that are certified by the Administrator 
                        of the Federal Aviation Administration 
                        and that are intended to replace or 
                        enhance conventional landing light 
                        systems.

           *       *       *       *       *       *       *

                  (H) routine work to preserve and extend the 
                useful life of runways, taxiways, and aprons at 
                airports that are not primary airports, under 
                guidelines issued by the Administrator.

           *       *       *       *       *       *       *

          (21) Enhanced vision technologies.--The term 
        ``enhanced vision technologies'' means laser guidance, 
        ultraviolet guidance, infrared, and cold cathode 
        technologies.

Sec. 47104. Project grant authority

  (a) * * *

           *       *       *       *       *       *       *

  (c) Expiration of Authority.--After [August 6, 1999,] 
September 30, 2004, the Secretary may not incur obligations 
under subsection (b) of this section, except for obligations of 
amounts--
          (1) * * *

           *       *       *       *       *       *       *


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

  (a) * * *

           *       *       *       *       *       *       *

  (f) Competition Plans.--
          (1) Prohibition.--Beginning in fiscal year 2001, no 
        passenger facility fee may be approved for a covered 
        airport under section 40117 and no grant may be made 
        under this subchapter for a covered airport unless the 
        airport has submitted to the Secretary a written 
        competition plan in accordance with this subsection.
          (2) Contents.--A competition plan under this 
        subsection shall include information on the 
        availability of airport gates and related facilities, 
        leasing and sub-leasing arrangements, gate-use 
        requirements, patterns of air service, gate-assignment 
        policy, financial constraints, airport controls over 
        air- and ground-side capacity, whether the airport 
        intends to build or acquire gates that would be used as 
        common facilities, and airfare levels (as compiled by 
        the Department of Transportation) compared to other 
        large airports.
          (3) Covered airport defined.--In this subsection, the 
        term ``covered airport'' means a commercial service 
        airport--
                  (A) that has more than .25 percent of the 
                total number of passenger boardings each year 
                at all such airports; and
                  (B) at which 1 or 2 air carriers control more 
                than 50 percent of the passenger boardings.

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

  (a) * * *

           *       *       *       *       *       *       *

  (h) Modifying Assurances and Requiring Compliance With 
Additional Assurances.--Before modifying an assurance required 
of a person receiving a grant under this subchapter and in 
effect after December 29, 1987 (including an assurance with 
respect to disposal of land by an airport owner or operator 
under subsection (c)(2)(B) without regard to whether or not the 
assurance or grant was made before December 29, 1987), or to 
require compliance withan additional assurance from the person, 
the Secretary of Transportation must--
          (1) * * *

           *       *       *       *       *       *       *


Sec. 47108. Project grant agreements

  (a) * * *

           *       *       *       *       *       *       *

  (e) Change in Airport Status.--In the event that the status 
of a primary airport changes to a nonprimary airport at a time 
when a terminal development project under a multiyear agreement 
under subsection (a) is not yet completed, the project shall 
remain eligible for funding from discretionary funds under 
section 47115 at the funding level and under the terms provided 
by the agreement, subject to the availability of funds.

Sec. 47109. United States Government's share of project costs

  (a) General.--Except as provided in subsection (b) of this 
section, the United States Government's share of allowable 
project costs is--
          (1) 75 percent for a project at a primary airport 
        having at least .25 percent of the total number of 
        passenger boardings each year at all commercial service 
        airports;
          (2) not more than 90 percent for a project funded by 
        a grant issued to and administered by a State under 
        section 47128, relating to the State block grant 
        program;
          [(2)] (3) 90 percent for a project at any other 
        airport; [and]
          [(3)] (4) 40 percent for a project funded by the 
        Administrator from the discretionary fund under section 
        47115 at an airport receiving an exemption under 
        section 47134[.]; and
          (5) 100 percent in fiscal year 2001 for any project--
                  (A) at an airport other than a primary 
                airport; or
                  (B) at a primary airport having less than .05 
                percent of the total number of passenger 
                boardings each year at all commercial service 
                airports.

           *       *       *       *       *       *       *


Sec. 47110. Allowable project costs

  (a) * * *

           *       *       *       *       *       *       *

  (e) Letters of Intent.--(1) * * *
  (2) Paragraph (1) of this subsection applies to a project--
          (A) * * *

           *       *       *       *       *       *       *

          [(C) the Secretary decides will enhance system-wide 
        airport capacity significantly and meets the criteria 
        of section 47115(d) of this title.]
          (C) that meets the criteria of section 47115(d) and, 
        if for a project at a commercial service airport having 
        at least 0.25 percent of the boardings each year at all 
        such airports, the Secretary decides will enhance 
        system-wide airport capacity significantly.

           *       *       *       *       *       *       *

  [(5) A letter of intent issued under paragraph (1) of this 
subsection may not condition the obligation of amounts on the 
imposition of a passenger facility fee.]
  (5) Letters of intent.--The Secretary may not require an 
eligible agency to impose a passenger facility fee under 
section 40117 in order to obtain a letter of intent under this 
section.

           *       *       *       *       *       *       *


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;
          [(iv) $.65 for each of the next 500,000 passenger 
        boardings at the airport during the prior calendar 
        year; and
          [(v) $.50 for each additional passenger boarding at 
        the airport during the prior calendar year.]
          (i) $23.40 for each of the first 50,000 passenger 
        boardings at the airport during the prior calendar 
        year;
          (ii) $15.60 for each of the next 50,000 passenger 
        boardings at the airport during the prior calendar 
        year;
          (iii) $7.80 for each of the next 400,000 passenger 
        boardings at the airport during the prior calendar 
        year;
          (iv) $1.95 for each of the next 500,000 passenger 
        boardings at the airport during the prior calendar 
        year; and
          (v) $1.50 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] 
$1,500,000 may be apportioned under subparagraph (A) of this 
paragraph to an airport sponsor for a primary airport for each 
fiscal year.
  (C) Notwithstanding subparagraph (A), the Secretary shall 
apportion to an airport sponsor in a fiscal year an amount 
equal to the amount apportioned to that sponsor in the previous 
fiscal year if the Secretary finds that--
          (i) passenger boardings at the airport were less than 
        10,000 in the calendar year used to calculate the 
        apportionment;
          (ii) the airport had at least 10,000 passenger 
        boardings in the calendar year prior to the calendar 
        year used to calculate the apportionment; and
          (iii) the cause of the decrease in passenger 
        boardings was a temporary but significant interruption 
        in service by an aircarrier to that airport due to an 
employment action, natural disaster, or other event unrelated to the 
demand for air transportation at the airport.
  (D) Notwithstanding subparagraph (A), the Secretary shall 
apportion on the first day of the first fiscal year following 
the official opening of a new airport with scheduled passenger 
air transportation an amount equal to the minimum amount set 
forth in subparagraph (B) to the sponsor of such airport.
          (2) Cargo only airports.--
                  (A) Apportionment.--Subject to subparagraph 
                (D), the Secretary shall apportion an amount 
                equal to [2.5] 3 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.

           *       *       *       *       *       *       *

  (d) Amounts Apportioned [to States] for General Aviation 
Airports.--
          (1) Definitions.--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 18.5 percent 
of the amount subject to apportionment for each fiscal year as 
follows:
          [(A) 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, 49.67 percent of the apportioned amount for 
        airports, 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, 49.67 percent of the apportioned amount for 
        airports, 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.
  [(3) An amount apportioned under paragraph (2) of this 
subsection for an airport in--
          [(A) Alaska may be made available by the Secretary 
        for a public airport described in section 
        47117(e)(1)(C)(ii) of this title to which section 
        15(a)(3)(A)(II) of the Airport and Airway Development 
        Act of 1970 applied during the fiscal year that ended 
        September 30, 1981; and
          [(B) Puerto Rico may be made available by the 
        Secretary for a primary airport and an airport 
        described in section 47117(e)(1)(C) of this title.]
          (2) Apportionments.--The Secretary shall apportion 20 
        percent of the amount subject to apportionment for each 
        fiscal year as follows:
                  (A) To each airport, excluding primary 
                airports but including reliever and nonprimary 
                commercial service airports, in States the 
                lesser of--
                          (i) $200,000; or
                          (ii) \1/5\ of the most recently 
                        published estimate of the 5-year costs 
                        for airport improvement for the 
                        airport, as listed in the national plan 
                        of integrated airport systems developed 
                        by the Federal Aviation Administration 
                        under section 47103.
                  (B) Any remaining amount to States as 
                follows:
                          (i) 0.62 percent of the remaining 
                        amount to Guam, American Samoa, the 
                        Commonwealth of the Northern Mariana 
                        Islands, and the Virgin Islands.
                          (ii) Except as provided in paragraph 
                        (3), 49.69 percent of the remaining 
                        amount for airports, excluding primary 
                        airports but including reliever and 
                        nonprimary commercial service airports, 
                        in States not named in clause (i) in 
                        the proportion that the population of 
                        each of those States bears to the total 
                        population of all of those States.
                          (iii) Except as provided in paragraph 
                        (3), 49.69 percent of the remaining 
                        amount for airports, excluding primary 
                        airports but including reliever and 
                        nonprimary commercial service airports, 
                        in States not named in clause (i) in 
                        the proportion that the area of each of 
                        those States bears to the total area of 
                        all of those States.
          (3) Special rule.--An amount apportioned under 
        paragraph (2) to Alaska, Puerto Rico, or Hawaii for 
        airports in such State may be made available by the 
        Secretary for any public airport in those respective 
        jurisdictions.
          (4) Integrated airport system planning.--
        Notwithstanding paragraph (2), funds made available 
        under this subsection may be used for integrated 
        airport system planning that encompasses 1 or more 
        primary airports.
          (5) Flexibility in pavement construction standards.--
        The Secretary may permit the use of State highway 
        specifications for airfield pavement construction using 
        funds made available under this subsection at 
        nonprimary airports serving aircraft that do not exceed 
        60,000 pounds gross weight if the Secretary determines 
        that--
                  (A) safety will not be negatively affected; 
                and
                  (B) the life of the pavement will not be 
                shorter than it would be if constructed using 
                Federal Aviation Administration standards.
  (e) [Alternative] Supplemental Apportionment for
Alaska.--
          (1) [Instead of apportioning amounts for airports in 
        Alaska under] In general.--Notwithstanding subsections 
        (c) and (d) of this section, the Secretary may 
        apportion amounts for [those airports] airports in 
        Alaska in the way in which amounts were apportioned in 
        the fiscal year ending September 30, 1980, under 
        section 15(a) of the Act and by increasing the amount 
        so determined for each of those airports by 3 times. 
        However, in apportioning amounts for a fiscal year 
        under this subsection, the Secretary shall apportion--
                  (A) for each primary airport at least as much 
                as would be apportioned for the airport under 
                subsection (c)(1) of this section; and
                  (B) a total amount at least equal to the 
                minimum amount required to be apportioned to 
                airports in Alaska in the fiscal year ending 
                September 30, 1980, under section 15(a)(3)(A) 
                of the Act.
          (2) Authority for discretionary grants.--This 
        subsection does not prohibit the Secretary from making 
        project grants for airports in Alaska from the 
        discretionary fund under section 47115 of this title.
  [(3) Airports referred to in this subsection include those 
public airports that received scheduled service as of September 
3, 1982, but were not apportioned amounts in the fiscal year 
ending September 30, 1980, under section 15(a) of the Act 
because the airports were not under the control of a State or 
local public agency.]
          (3) Airports eligible for funds.--An amount 
        apportioned under this subsection may be used for any 
        public airport in Alaska.
  (f) Reducing Apportionments.--[An amount]
          (1) In general.--An amount that would be apportioned 
        under this section (except subsection (c)(2)) in a 
        fiscal year to the sponsor of an airport having at 
        least .25 percent of the total number of boardings each 
        year in the United States and for which a fee is 
        imposed in the fiscal year under section 40117 of this 
        title shall be reduced by [an amount equal to 50 
        percent of the projected revenues from the fee in the 
        fiscal year but not by more than 50 percent of the 
        amount that otherwise would be apportioned under this 
        section.] an amount equal to--
                  (A) in the case of a fee of $3 or less, 50 
                percent of the projected revenues from the fee 
                in the fiscal year but not by more than 50 
                percent of the amount that otherwise would be 
                apportioned under this section; and
                  (B) in the case of a fee of more than $3, 75 
                percent of the projected revenues from the fee 
                in the fiscal year but not by more than 75 
                percent of the amount that otherwise would be 
                apportioned under this section.
          (2) Effective date of reduction.--A reduction in an 
        apportionment required by paragraph (1) shall not take 
        effect until the first fiscal year following the year 
        in which the collection of the fee imposed under 
        section 40117 is begun.

Sec. 47115. Discretionary fund

  (a) * * *

           *       *       *       *       *       *       *

  [(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) $148,000,000; 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.
          [(4) Special rule.--For a fiscal year in which the 
        amount credited to the fund under this subsection 
        exceeds $300,000,000, the Secretary shall allocate the 
        amount of such excess as follows:
                  [(A) \1/3\ shall be made available to 
                airports for which apportionments are made 
                under section 47114(d) of this title.
                  [(B) \1/3\ shall be made available 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.
                  [(C) \1/3\ shall be made available to current 
                or former military airports for which grants 
                may be made under section 47117(e)(1)(B) of 
                this title.
  [(h) Priority for Letters of Intent.--In making grants in a 
fiscal year with funds made available under this section, the 
Secretary shall fulfill intentions to obligate under section 
47110(e).]
  (g) Priority for Letters of Intent.--
          (1) In general.--Subject to paragraph (2), the 
        Secretary shall fulfill intentions to obligate under 
        section 47110(e) with amounts available in the fund 
        established by subsection (a) and, if such amounts are 
        not sufficient for a fiscal year, with amounts made 
        available to carry out sections 47114(c)(1)(A), 
        47114(c)(2), 47114(d), and 47117(e) on a pro rata 
        basis.
          (2) Procedure.--Before apportioning funds under 
        sections 47114(c)(1)(A), 47114(c)(2), 47114(d), and 
        47117(e) of each fiscal year, the Secretary shall 
        determine the amount of funds that will be necessary to 
        fulfill intentions to obligate under section 47110(e) 
        in such fiscal year. If such amount is greater than the 
        amount of funds that will be available in the fund 
        established by subsection (a) for such fiscal year, the 
        Secretary shall reduce the amount to be apportioned 
        under such sections for such fiscal year on a pro rata 
        basis by an amount equal to the difference.

Sec. 47116. Small airport fund

  (a) * * *

           *       *       *       *       *       *       *

  (d) Priority Consideration for Certain Projects.--[In making]
          (1) Construction of new runways.--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.
          (2) Airport development for turbine powered 
        aircraft.--In making grants to sponsors described in 
        subsection (b)(1), the Secretary shall give priority 
        consideration to airport development projects to 
        support operations by turbine powered aircraft, if the 
        non-Federal share of the project is at least 40 
        percent.
  (e) Set-Aside for Meeting Safety Terms in Airport Operating 
Certificates.--In the first fiscal year beginning after the 
effective date of regulations issued to carry out section 
44706(b) with respect to airports described in section 
44706(a)(2), and in each of the next 4 fiscal years, the lesser 
of $15,000,000 or 20 percent of the amounts that would 
otherwise be distributed to sponsors of airports under 
subsection (b)(2) shall be used to assist the airports in 
meeting the terms established by the regulations. If the 
Secretary publishes in the Federal Register a finding that all 
the terms established by the regulations have been met, this 
subsection shall cease to be effective as of the date of such 
publication.
  (f) Notification of Source of Grant.--Whenever the Secretary 
makes a grant under this section, the Secretary shall notify 
the recipient of the grant, in writing, that the source of the 
grant is from the small airport fund.

Sec. 47117. Use of apportioned amounts

  (a) * * *

           *       *       *       *       *       *       *

  (e) Special Apportionment Categories.--(1) The Secretary 
shall use amounts available to the discretionary fund under 
section 47115 of this title for each fiscal year as follows:
          (A) At least [31] 34 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) 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] 34 percent requirement is 
        being met in that fiscal year.
          (B) [At least 4 percent to sponsors of current] At 
        least 4 percent 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 
toimprove 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.

           *       *       *       *       *       *       *

  [(f) Limitation for Commercial Service Airport in Alaska.--
The Secretary may not make a grant for a commercial service 
airport in Alaska of more than 110 percent of the amount 
apportioned for the airport for a fiscal year under section 
47114(e) of this title.
  [(g) Discretionary Use of Apportionments.--(1) Subject to 
paragraph (2) of this subsection, if the Secretary finds, based 
on the notices the Secretary receives under section 47105(f) of 
this title or otherwise, that an amount apportioned under 
section 47114 of this title will not be used for grants during 
a fiscal year, the Secretary may use an equal amount for grants 
during that fiscal year for any of the purposes for which 
amounts are authorized for grants under section 48103 of this 
title.
  [(2) The Secretary may make a grant under paragraph (1) of 
this subsection only if the Secretary decides that--
          [(A) the total amount used for grants for the fiscal 
        year under section 48103 of this title will not be more 
        than the amount made available under section 48103 for 
        that fiscal year; and
          [(B) the amounts authorized for grants under section 
        48103 of this title for later fiscal years are 
        sufficient for grants of the apportioned amounts that 
        were not used for grants under the apportionment during 
        the fiscal year and that remain available under 
        subsection (b) of this section.]
  (f) Discretionary Use of Apportionments.--
          (1) In general.--Subject to paragraph (2), if the 
        Secretary finds that all or part of an amount of an 
        apportionment under section 47114 is not required 
        during a fiscal year to fund a grant for which the 
        apportionment may be used, the Secretary may use during 
        such fiscal year the amount not so required to make 
        grants for any purpose for which grants may be made 
        under section 48103. The finding may be based on the 
        notifications that the Secretary receives under section 
        47105(f) or on other information received from airport 
        sponsors.
          (2) Restoration of apportionments.--
                  (A) In general.--If the fiscal year for which 
                a finding is made under paragraph (1) with 
                respect to an apportionment is not the last 
                fiscal year of availability of the 
                apportionment under subsection (b), the 
                Secretary shall restore to the apportionment an 
                amount equal to the amount of the apportionment 
                used under paragraph (1) for a discretionary 
                grant whenever a sufficient amount is made 
                available under section 48103.
                  (B) Period of availability.--If restoration 
                under this paragraph is made in the fiscal year 
                for which the finding is made or the succeeding 
                fiscal year, the amount restored shall be 
                subject to the original period of availability 
                of the apportionment under subsection (b). If 
                the restoration is made thereafter, the amount 
                restored shall remain available in accordance 
                with subsection (b) for the original period of 
                availability of the apportionment, plus the 
                number of fiscal years during which a 
                sufficient amount was not available for the 
                restoration.
          (3) Newly available amounts.--
                  (A) Restored amounts to be unavailable for 
                discretionary grants.--Of an amount newly 
                available under section 48103 of this title, an 
                amount equal to the amounts restored under 
                paragraph (2) shall not be available for 
                discretionary grant obligations under section 
                47115.
                  (B) Use of remaining amounts.--Subparagraph 
                (A) does not impair the Secretary's authority 
                under paragraph (1), after a restoration under 
                paragraph (2), to apply all or part of a 
                restored amount that is not required to fund a 
                grant under an apportionment to fund 
                discretionary grants.
          (4) Limitations on obligations apply.--Nothing in 
        this subsection shall be construed to authorize the 
        Secretary to incur grant obligations under section 
        47104 for a fiscal year in an amount greater than the 
        amount made available under section 48103 for such 
        obligations for such fiscal year.
  [(h)] (g) Limiting Authority of Secretary.--The authority of 
the Secretary to make grants during a fiscal year from amounts 
that were apportioned for a prior fiscal year and remain 
available for approved airport development project grants under 
subsection (b) of this section may be impaired only by a law 
enacted after September 3, 1982, that expressly limits that 
authority.

Sec. 47118. Designating current and former military airports

  (a) General Requirements.--The Secretary of Transportation 
shall designate current or former military airports for which 
grants may be made under section 47117(e)(1)(B) of this title. 
The maximum number of airports bearing such designation at any 
time is [12] 12 for fiscal year 2000 and 20 for each fiscal 
year thereafter. The Secretary may only so designate an airport 
(other than an airport so designated before August 24, 1994) 
if--
          (1) * * *

           *       *       *       *       *       *       *

  [(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)] (c) 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 followingthe designation, and for subsequent [5-
fiscal-year periods] periods, each not to exceed 5 fiscal years, if the 
Secretary determines that the airport satisfies the designation 
criteria under subsection (a) at the beginning of [each such subsequent 
5-fiscal-year period] each such subsequent period.
  [(e)] (d) Terminal Building Facilities.--Not more than 
[$5,000,000] $7,000,000 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)] (e) Parking Lots, Fuel Farms, Utilities, [and Hangars] 
Hangers, and Air Cargo Terminals.--Not more than a total of 
[$4,000,000] $7,000,000 for each airport from amounts the 
Secretary distributes under section 47115 of this title 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, utilities, 
and hangars and air cargo terminals of an area that is 50,000 
square feet or less.
  (f) Designation of General Aviation Airport.--Notwithstanding 
any other provision of this section, at least 3 of the airports 
designated under subsection (a) shall be general aviation 
airports that were former military installations closed or 
realigned under a section referred to in subsection (a)(1).

Sec. 47119. Terminal development costs

  (a) Repaying Borrowed Money.--An amount apportioned under 
section 47114 of this title and made available to the sponsor 
of an air carrier airport at which terminal development was 
carried out after June 30, 1970, and before July 12, 1976, or, 
in the case of a commercial service airport which annually had 
less than [0.05] 0.25 percent of the total enplanements in the 
United States, [between January 1, 1992, and October 31, 1992,] 
between August 1, 1986, and September 30, 1990, or between June 
1, 1991, and October 31, 1992, is available to repay 
immediately money borrowed and used to pay the costs for 
terminal development at the airport, if those costs would be 
allowable project costs under section 47110(d) of this title if 
they had been incurred after September 3, 1982. An amount is 
available for a grant under this subsection--
          (1) only if--
                  (A) the sponsor submits the certification 
                required under section 47110(d) of this title;
                  (B) the Secretary of Transportation decides 
                that using the amount to repay the borrowed 
                money will not defer [an airport development 
                project outside the terminal area at that 
                airport] any needed airport development project 
                affecting safety, security, or capacity; and

           *       *       *       *       *       *       *

  (c) Nonhub Airports.--With respect to a project at a 
commercial service airport which annually has less than [0.05] 
0.25 percent of the total enplanements in the United States, 
the Secretary may approve the use of the amounts described in 
subsection (a) notwithstanding the requirements of sections 
47107(a)(17), 47112, and 47113.
  (d) Determination of Passenger Boarding at Commercial Service 
Airport.--For the purpose of determining whether an amount may 
be distributed for a fiscal year from the discretionary fund in 
accordance with subsection (b)(2)(A) to a commercial service 
airport, the Secretary shall make the determination of whether 
or not a public airport is a commercial service airport on the 
basis of the number of passenger boardings and type of air 
service at the public airport in the calendar year that 
includes the first day of such fiscal year or the preceding 
calendar year, whichever is more beneficial to the airport.

           *       *       *       *       *       *       *


Sec. 47124. Agreements for State and local operation of airport 
                    facilities

  (a) * * *
  (b) Air Traffic Control Contract Program.--(1) * * *

           *       *       *       *       *       *       *

          (3) Contract air traffic control tower pilot 
        program.--
                  (A) In general.--The Secretary shall 
                establish a pilot program to contract for air 
                traffic control services at Level I air traffic 
                control towers, as defined by the Administrator 
                of the Federal Aviation Administration, that do 
                not qualify for the Contract Tower program 
                established under subsection (a) and continued 
                under paragraph (1) (hereafter in this 
                paragraph referred to as the ``Contract Tower 
                Program'').
                  (B) Program components.--In carrying out the 
                pilot program established under subparagraph 
                (A), the Administrator shall--
                          (i) utilize for purposes of cost-
                        benefit analyses, current, actual, 
                        site-specific data, forecast estimates, 
                        or airport master plan data provided by 
                        a facility owner or operator and 
                        verified by the Administrator;
                          (ii) approve for participation only 
                        facilities willing to fund a pro rata 
                        share of the operating costs of the air 
                        traffic control tower to achieve a 1 to 
                        1 benefit-to-cost ratio, as required 
                        for eligibility under the Contract 
                        Tower Program; and
                          (iii) approve for participation no 
                        more than 2 facilities willing to fund 
                        up to 50 percent, but not less than 25 
                        percent, of construction costs for an 
                        air traffic control tower built by the 
                        airport operator and for each of such 
                        facilities the Federal share of 
                        construction cost does not exceed 
                        $1,100,000.
                  (C) Priority.--In selecting facilities to 
                participate in the program under this 
                paragraph, the Administrator shall give 
                priority to the following:
                          (i) Air traffic control towers that 
                        are participating in the Contract Tower 
                        Program but have been notified that 
                        they will be terminated from such 
                        program because the Administration has 
                        determined that the benefit-to-cost 
                        ratio for their continuation in such 
                        program is less than 1.0.
                          (ii) Air traffic control towers that 
                        the Administrator determines have a 
                        benefit-to-cost ratio of at least .85.
                          (iii) Air traffic control towers of 
                        the Federal Aviation Administration 
                        that are closed as a result of the air 
                        traffic controllers strike in 1981.
                          (iv) Air traffic control towers that 
                        are located at airports or points at 
                        which an air carrier is receiving 
                        compensation under the essential air 
                        service program under this chapter.
                          (v) Air traffic control towers 
                        located at airports that are prepared 
                        to assume partial responsibility for 
                        maintenance costs.
                          (vi) Air traffic control towers that 
                        are located at airports with safety or 
                        operational problems related to 
                        topography, weather, runway 
                        configuration, or mix of aircraft.
                  (D) Costs exceeding benefits.--If the costs 
                of operating an air traffic tower under the 
                pilot program established under this paragraph 
                exceed the benefits, the airport sponsor or 
                State of local government having jurisdiction 
                over the airport shall pay the portion of the 
                costs that exceed such benefit.
                  (E) Funding.--Of the amounts appropriated 
                pursuant to section 106(k), not to exceed 
                $6,000,000 per fiscal year may be used to carry 
                out this paragraph.

           *       *       *       *       *       *       *


Sec. 47125. Conveyances of United States Government land

  (a) Conveyances to Public Agencies.--Except as provided in 
subsection (b) of this section, the Secretary of Transportation 
shall request the head of the department, agency, or 
instrumentality of the United States Government owning or 
controlling land or airspace to convey a property interest in 
the land or airspace to the public agency sponsoring the 
project or owning or controlling the airport when necessary to 
carry out a project under this subchapter at a public airport, 
to operate a public airport, or for the future development of 
an airport under the national plan of integrated airport 
systems. The head of the department, agency, or instrumentality 
shall decide whether the requested conveyance is consistent 
with the needs of the department, agency, or instrumentality 
and shall notify the Secretary of that decision not later than 
4 months after receiving the request. If the head of the 
department, agency, or instrumentality decides that the 
requested conveyance is consistent with its needs, the head of 
the department, agency, or instrumentality, with the approval 
of the Attorney General and without cost to the Government, 
shall make the conveyance. A conveyance may be made only on the 
condition that the property interest conveyed reverts to the 
Government, at the option of the Secretary, to the extent it is 
not developed for an airport purpose or used consistently with 
the conveyance. The Secretary may only release an option of the 
United States for a reversionary interest under this subsection 
after providing notice and an opportunity for public comment. 
The Secretary shall publish in the Federal Register any 
decision of the Secretary to release a reversionary interest 
and the reasons for the decision.

           *       *       *       *       *       *       *


[Sec. 47132. Pavement maintenance

  [(a) In General.--The Administrator of the Federal Aviation 
Administration shall issue guidelines to carry out a pavement 
maintenance pilot project to preserve and extend the useful 
life of runways, taxiways, and aprons at airports for which 
apportionments are made under section 47114(d). The guidelines 
shall provide that the Administrator may designate not more 
than 10 projects. The guidelines shall provide criteria for the 
Administrator to use in choosing the projects. At least 2 such 
projects must be in States without a primary airport that had 
0.25 percent or more of the total boardings in the United 
States in the preceding calendar year. In designating a 
project, the Administrator shall take into consideration 
geographical, climatological, and soil diversity.
  [(b) Effective Date.--This section shall be effective 
beginning on the date of the enactment of this section and 
ending on September 30, 1999.]

           *       *       *       *       *       *       *


Sec. 47135. Innovative financing techniques

  (a) In General.--The Secretary of Transportation may approve 
applications for not more than 25 airport development projects 
for which grants received under this subchapter may be used for 
innovative financing techniques. Such projects shall be located 
at airports that each year have less than .25 percent of the 
total number of passenger boardings each year at all commercial 
service airports.
  (b) Purpose.--The purpose of grants made under this section 
shall be to provide information on the benefits and 
difficulties of using innovative financing techniques for 
airport development projects.
  (c) Limitations.--
          (1) No guarantees.--In no case shall the 
        implementation of an innovative financing technique 
        under this section be used in a manner giving rise to a 
        direct or indirect guarantee of any airport debt 
        instrument by the United States Government.
          (2) Types of techniques.--In this section, innovative 
        financing techniques are limited to--
                  (A) payment of interest;
                  (B) commercial bond insurance and other 
                credit enhancement associated with airport 
                bonds for eligible airport development; and
                  (C) flexible non-Federal matching 
                requirements.

Sec. 47136. Aviation security program

  (a) General Authority.--To improve security at public 
airports in the United States, the Secretary of Transportation 
shall carry out not less than one project to test and evaluate 
innovative aviation security systems and related technology.
  (b) Priority.--In carrying out this section, the Secretary 
shall give the highest priority to a request from an eligible 
sponsor for a grant to undertake a project that--
          (1) evaluates and tests the benefits of innovative 
        aviation security systems or related technology, 
        including explosives detection systems, for the purpose 
        of improving aviation security, including aircraft 
        physical security, access control, and passenger and 
        baggage screening; and
          (2) provides testing and evaluation of airport 
        security systems and technology in an operational, test 
        bed environment.
  (c) Matching Share.--Notwithstanding section 47109, the 
United States Government's share of allowable project costs for 
a project under this section shall be 100 percent.
  (d) Terms and Conditions.--The Secretary may establish such 
terms and conditions as the Secretary determines appropriate 
for carrying out a project under this section, including terms 
and conditions relating to the form and content of a proposal 
for a project, project assurances, and schedule of payments.
  (e) Eligible Sponsor Defined.--In this section, the term 
``eligible sponsor'' means a nonprofit corporation composed of 
a consortium of public and private persons, including a sponsor 
of a primary airport, with the necessary engineering and 
technical expertise to successfully conduct the testing and 
evaluation of airport and aircraft related security systems.
  (f) Authorization of Appropriations.--Of the amounts made 
available to the Secretary under section 47115 in a fiscal 
year, the Secretary shall make available not less than 
$5,000,000 for the purpose of carrying out this section.

Sec. 47137. Inherently low-emission airport vehicle pilot program

  (a) In General.--The Secretary of Transportation shall carry 
out a pilot program at not more than 10 public-use airports 
under which the sponsors of such airports may use funds made 
available under section 48103 for use at such airports to carry 
out inherently low-emission vehicle activities. Notwithstanding 
any other provision of this subchapter, inherently low-emission 
vehicle activities shall for purposes of the pilot program be 
treated as eligible for assistance under this subchapter.
  (b) Location in Air Quality Nonattainment Areas.--A public-
use airport shall be eligible for participation in the pilot 
program only if the airport is located in an air quality 
nonattainment area (as defined in section 171(2) of the Clean 
Air Act (42 U.S.C. 7501(d)).
  (c) Selection Criteria.--In selecting from among applicants 
for participation in the pilot program, the Secretary shall 
give priority consideration to applicants that will achieve the 
greatest air quality benefits measured by the amount of 
emissions reduced per dollar of funds expended under the pilot 
program.
  (d) United States Government's Share.--Notwithstanding any 
other provision of this subchapter, the United States 
Government's share of the costs of a project carried out under 
the pilot program shall be 50 percent.
  (e) Maximum Amount.--Not more than $2,000,000 may be expended 
under the pilot program at any single public-use airport.
  (f) Report to Congress.--Not later than 18 months after the 
date of enactment of this section, the Secretary shall transmit 
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 
an evaluation of the effectiveness of the pilot program.
  (g) Inherently Low-Emission Vehicle Activity Defined.--In 
this section, the term ``inherently low-emission vehicle 
activity'' means--
          (1) the construction of infrastructure facilities 
        necessary for the use of vehicles that are certified as 
        inherently low-emission vehicles under title 40 of the 
        Code of Federal Regulations, that are labeled in 
        accordance with section 88.312-93(c) of such title, and 
        that are located or primarily used at public-use 
        airports;
          (2) the payment of that portion of the cost of 
        acquiring such vehicles that exceeds the cost of 
        acquiring other vehicles that would be used for the 
        same purpose; or
          (3) the acquisition of technological equipment 
        necessary for the use of vehicles described in 
        paragraph (1).

Sec. 47138. Safeguards against deficit spending

  (a) Estimates of Unfunded Aviation Authorizations and Net 
Aviation Receipts.--Not later than March 31 of each year, the 
Secretary of Transportation, in consultation with the Secretary 
of the Treasury, shall estimate--
          (1) the amount which would (but for this section) be 
        the unfunded aviation authorizations at the close of 
        the first fiscal year that begins after that March 31, 
        and
          (2) the net aviation receipts to be credited to the 
        Airport and Airway Trust Fund during the fiscal year.
  (b) Procedure if Excess Unfunded Aviation Authorizations.--If 
the Secretary of Transportation determines for any fiscal year 
that the amount described in subsection (a)(1) exceeds the 
amount described in subsection (a)(2), the Secretary shall 
determine the amount of such excess.
  (c) Adjustment of Authorizations if Unfunded Authorizations 
Exceed Receipts.--
          (1) Determination of percentage.--If the Secretary 
        determines that there is an excess referred to in 
        subsection (b) for a fiscal year, the Secretary shall 
        determine the percentage which--
                  (A) such excess, is of
                  (B) the total of the amounts authorized to be 
                appropriated from the Airport and Airway Trust 
                Fund for the next fiscal year.
          (2) Adjustment of authorizations.--If the Secretary 
        determines a percentage under paragraph (1), each 
        amount authorized to be appropriated from the Airport 
        and Airway Trust Fund for the next fiscal year shall be 
        reduced by such percentage.
  (d) Availability of Amounts Previously Withheld.--
          (1) Adjustment of authorizations.--If, after a 
        reduction has been made under subsection (c)(2), the 
        Secretary determines that the amount described in 
        subsection (a)(1) does not exceed the amount described 
        in subsection (a)(2) or that the excess referred to in 
        subsection (b) is less than the amount previously 
        determined, each amount authorized to be appropriated 
        that was reduced under subsection (c)(2) shall be 
        increased, by an equal percentage, to the extent the 
        Secretary determines that it may be so increased 
        without causing the amount described in subsection 
        (a)(1) to exceed the amount described in subsection 
        (a)(2) (but not by more than the amount of the 
        reduction).
          (2) Apportionment.--The Secretary shall apportion 
        amounts made available for apportionment by paragraph 
        (1).
          (3) Period of availability.--Any funds apportioned 
        under paragraph (2) shall remain available for the 
        period for which they would be available if such 
        apportionment took effect with the fiscal year in which 
        they are apportioned under paragraph (2).
  (e) Reports.--Any estimate under subsection (a) and any 
determination under subsection (b), (c), or (d) shall be 
reported by the Secretary to Congress.
  (f) Definitions.--For purposes of this section, the following 
definitions apply:
          (1) Net aviation receipts.--The term ``net aviation 
        receipts'' means, with respect to any period, the 
        excess of--
                  (A) the receipts (including interest) of the 
                Airport and Airway Trust Fund during such 
                period, over
                  (B) the amounts to be transferred during such 
                period from the Airport and Airway Trust Fund 
                under section 9502(d) of the Internal Revenue 
                Code of 1986 (other than paragraph (1) 
                thereof).
          (2) Unfunded aviation authorizations.--The term 
        ``unfunded aviation authorization'' means, at any time, 
        the excess (if any) of--
                  (A) the total amount authorized to be 
                appropriated from the Airport and Airway Trust 
                Fund which has not been appropriated, over
                  (B) the amount available in the Airport and 
                Airway Trust Fund at such time to make such 
                appropriation (after all other unliquidated 
                obligations at such time which are payable from 
                the Airport and Airway Trust Fund have been 
                liquidated).

          SUBCHAPTER II--SURPLUS PROPERTY FOR PUBLIC AIRPORTS

Sec. 47151. Authority to transfer an interest in surplus property

  (a) General Authority.--Subject to sections 47152 and 47153 
of this title, a department, agency, or instrumentality of the 
executive branch of the United States Government or a wholly 
owned Government corporation may [give] convey to a State, 
political subdivision of a State, or tax-supported organization 
any interest in surplus property--
          (1) * * *
          (2) if the Administrator of General Services approves 
        the [gift] conveyance and decides the interest is not 
        best suited for industrial use.
  (b) Ensuring Compliance.--Only the Secretary may ensure 
compliance with an instrument [giving] conveying an interest in 
surplus property under this subchapter. The Secretary may amend 
the instrument to correct the instrument or to make the [gift] 
conveyance comply with law.
  (c) Disposing of Interests Not [Given] Conveyed Under This 
Subchapter.--An interest in surplus property that could be used 
at a public airport but that is not [given] conveyed under this 
subchapter shall be disposed of under other applicable law.
  (d) Requests by Public Agencies.--Except with respect to a 
request made by another department, agency, or instrumentality 
of the executive branch of the United States Government, such a 
department, agency, or instrumentality shall give priority 
consideration to a request made by a public agency (as defined 
in section 47102) for surplus property described in subsection 
(a) for use at a public airport.

Sec. 47152. Terms of [gifts] conveyances

  Except as provided in section 47153 of this title, the 
following terms apply to a [gift] conveyance of an interest in 
surplus property under this subchapter:
          (1) * * *

           *       *       *       *       *       *       *


Sec. 47153. Waiving and adding terms

  (a) General Authority.--(1) The Secretary of Transportation 
may waive, without charge, a term of a [gift] conveyance of an 
interest in property under this subchapter if the Secretary 
decides, after providing notice and an opportunity for public 
comment, that--
          (A) the property no longer serves the purpose for 
        which it was [given] conveyed; or
          (B) the waiver will not prevent carrying out the 
        purpose for which the [gift] conveyance was made and is 
        necessary to advance the civil aviation interests of 
        the United States.

           *       *       *       *       *       *       *

          (3) Publication of decisions.--The Secretary shall 
        publish in the Federal Register any decision to waive a 
        term under paragraph (1) and the reasons for the 
        decision.

           *       *       *       *       *       *       *

  (c) Considerations.--In deciding whether to waive a term 
required by section 47152 or add another term, the Secretary 
shall consider the current and future needs of the users of the 
airport.

           *       *       *       *       *       *       *


CHAPTER 475--NOISE

           *       *       *       *       *       *       *


SUBCHAPTER II--NATIONAL AVIATION NOISE POLICY

           *       *       *       *       *       *       *


Sec. 47528. Prohibition on operating certain aircraft not complying 
                    with stage 3 noise levels

  (a) Prohibition.--Except as provided in subsection (b) or (f) 
of this section and section 47530 of this title, a person may 
operate after December 31, 1999, a civil subsonic turbojet with 
a maximum weight of more than 75,000 pounds to or from an 
airport in the United States only if the Secretary of 
Transportation finds that the aircraft complies with the stage 
3 noise levels.
  (b) Waivers.--(1) If, not later than July 1, 1999, at least 
85 percent of the aircraft used by an air carrier or foreign 
air carrier to provide air transportation comply with the stage 
3 noise levels, the carrier may apply for a waiver of 
subsection (a) of this section for the remaining aircraft used 
by the carrier to provide air transportation. The application 
must be filed with the Secretary not later than January 1, 
1999, and must include a plan with firm orders for making all 
aircraft used by the carrier to provide air transportation 
comply with the noise levels not later than December 31, 2003.

           *       *       *       *       *       *       *

  (e) Hawaiian Operations.--(1) * * *

           *       *       *       *       *       *       *

  (4) An air carrier operating stage 2 aircraft under this 
subsection may operate stage 2 aircraft to or from the 48 
contiguous States on a nonrevenue basis in order to--
          (A) perform maintenance (including major alterations) 
        or preventative maintenance on aircraft operated, or to 
        be operated, within the limitations of paragraph 
        (2)(B); or
          (B) conduct operations within the limitations of 
        paragraph (2)(B).
  (f) Aircraft Modification or Disposal.--After December 31, 
1999, the Secretary may provide a procedure under which a 
person may operate a stage 1 or stage 2 aircraft in nonrevenue 
service to or from an airport in the United States in order 
to--
          (1) sell the aircraft outside the United States;
          (2) sell the aircraft for scrapping; or
          (3) obtain modifications to the aircraft to meet 
        stage 3 noise levels.

           *       *       *       *       *       *       *


                           PART C--FINANCING

       CHAPTER 481--AIRPORT AND AIRWAY TRUST FUND AUTHORIZATIONS

Sec.
48101.  Air navigation facilities and equipment.
     * * * * * * *
48112.  Aviation safety accelerated program.

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) $2,068,000,000 for fiscal year 1997.
          [(2) $2,129,000,000 for fiscal year 1998.
          [(3) $2,131,000,000 for fiscal year 1999.]
          (1) Such sums as may be necessary for fiscal year 
        2000.
          (2) $2,500,000,000 for fiscal year 2001.
          (3) $3,000,000,000 for each of fiscal years 2002 
        through 2004.

           *       *       *       *       *       *       *

  (d) Universal Access Systems.--Of the amounts appropriated 
under subsection (a) for fiscal year 2001, $8,000,000 may be 
used for the voluntary purchase and installation of universal 
access systems.

           *       *       *       *       *       *       *


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

  The total amounts which shall be available after September 
30, 1998, 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 $2,050,000,000 for the period beginning October 1, 
1998 and ending August 6, 1999.] shall be--
          (1) $2,410,000,000 for fiscal year 1999;
          (2) $2,475,000,000 for fiscal year 2000;
          (3) $4,000,000,000 for fiscal year 2001;
          (4) $4,100,000,000 for fiscal year 2002;
          (5) $4,250,000,000 for fiscal year 2003; and
          (6) $4,350,000,000 for fiscal year 2004.

Sec. 48104. Operations and maintenance

  (a) * * *
  [(b) Limitation for Fiscal Year 1993.--The amount that may be 
appropriated out of the Fund for fiscal year 1993 may not be 
more than an amount equal to--
          [(1) 75 percent of the amount made available under 
        sections 106(k) and 48101-48103 of this title for that 
        fiscal year; less
          [(2) the amount made available under sections 48101-
        48103 of this title for that fiscal year.
  [(c) Limitation for Fiscal Years 1994-1998.--The amount 
appropriated from the Trust Fund for the purposes of paragraphs 
(1) and (2) of subsection (a) for each of fiscal years 1994 
through 1998 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) 72.5 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.]
  (b) Limitation for Fiscal Year 1999.--The amount appropriated 
from the Trust Fund for the purposes of paragraphs (1) and (2) 
of subsection (a) for fiscal year 1999 may not exceed the 
lesser of--
          (1) 50 percent of the amount of funds made available 
        under sections 48101 through 48103 for such fiscal 
        year; or
          (2)(A) 72.5 percent of the amount of funds made 
        available under sections 106(k) and 48101 through 48103 
        for such fiscal year; less
          (B) the amount of funds made available under sections 
        48101 through 48103 for such fiscal year.
  (c) Limitation for Fiscal Years 2000-2004.--The amount 
appropriated from the Trust Fund for the purposes of paragraphs 
(1) and (2) of subsection (a) for each of fiscal years 2000 
through 2004 may not exceed--
          (1) 70 percent of the FAA guaranteed spending levels 
        for budget resources under section 48302, as adjusted, 
        for such fiscal year; less
          (2) the amount of funds made available under sections 
        48101 through 48103 and 48112 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, [1998] 2004, 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.

           *       *       *       *       *       *       *


Sec. 48112. Aviation safety accelerated program

  The total amounts which shall be available after September 
30, 1999, out of the Airport and Airway Trust Fund established 
under section 9502 of the Internal Revenue Code of 1986 to make 
grants for the aviation safety accelerated program under 
section 47161 shall be--
          (1) $921,000,000 for fiscal year 2000;
          (2) $1,254,000,000 for fiscal year 2001;
          (3) $2,157,000,000 for fiscal year 2002;
          (4) $2,787,000,000 for fiscal year 2003; and
          (5) $3,125,000,000 for fiscal year 2004.

           *       *       *       *       *       *       *


          CHAPTER 483--ADJUSTMENT OF TRUST FUND AUTHORIZATIONS

Sec.
48301. Definitions.
48302. Adjustments to align aviation authorizations with revenues.
48303. Adjustment to AIP program funding.
48304. Estimated aviation income.

Sec. 48301. Definitions

  In this chapter, the following definitions apply:
          (1) Base year.--The term ``base year'' means the 
        second fiscal year before the fiscal year for which the 
        calculation is being made.
          (2) AIP program.--The term ``AIP program'' means the 
        programs for which amounts are made available under 
        section 48103.
          (3) Aviation income.--The term ``aviation income'' 
        means the tax receipts credited to the Airport and 
        Airway Trust Fund and any interest attributable to the 
        Fund.

Sec. 48302. Adjustment to align aviation authorizations with revenues

  (a) Authorization of Appropriations.--Beginning with fiscal 
year 2003, if the actual level of aviation income for the base 
year is greater or less than the estimated aviation income 
level specified in section 48304 for the base year, the amounts 
authorized to be appropriated (or made available) for the 
fiscal year under each of sections 106(k), 48101, 48102, and 
48103 are adjusted as follows:
          (1) If the actual level of aviation income for the 
        base year is greater than the estimated aviation income 
        level specified in section 48304 for the base year, the 
        amount authorized to be appropriated (or made 
        available) for such section is increased by an amount 
        determined by multiplying the amount of the excess by 
        the ratio for such section set forth in subsection (b).
          (2) If the actual level of aviation income for the 
        base year is less than the estimated aviation income 
        level specified in section 48304 for the base year, the 
        amount authorized to be appropriated (or made 
        available) for such section is decreased by an amount 
        determined by multiplying the amount of the shortfall 
        by the ratio for such section set forth in subsection 
        (b).
  (b) Ratio.--The ratio referred to in subsection (a) with 
respect to section 106(k), 48101, 48102, or 48103, as the case 
may be, is the ratio that--
          (1) the amount authorized to be appropriated (or made 
        available) under such section for the fiscal year; 
        bears to
          (2) the total sum of amounts authorized to be 
        appropriated (or made available) under all of such 
        sections for the fiscal year.
  (c) President's Budget.--When the President submits a budget 
for a fiscal year under section 1105 of title 31, United States 
Code, the Director of the Office of Management and Budget shall 
calculate and the budget shall report any increase or decrease 
in authorization levels resulting from this section.

Sec. 48303. Adjustment to AIP program funding

  On the effective date of a general appropriations Act 
providing appropriations for a fiscal year beginning after 
September 30, 2000, for the Federal Aviation Administration, 
the amount made available for a fiscal year under section 48103 
shall be increased by the amount, if any, by which--
          (1) the total sum of amounts authorized to be 
        appropriated under all of sections 106(k), 48101, and 
        48102 for such fiscal year, including adjustments made 
        under section 48302; exceeds
          (2) the amounts appropriated for programs funded 
        under such sections for such fiscal year.
Any contract authority made available by this section shall be 
subject to an obligation limitation.

Sec. 48304. Estimated aviation income

  For purposes of section 48302, the estimated aviation income 
levels are as follows:
          (1) $10,734,000,000 for fiscal year 2001.
          (2) $11,603,000,000 for fiscal year 2002.
          (3) $12,316,000,000 for fiscal year 2003.
          (4) $13,062,000,000 for fiscal year 2004.

           *       *       *       *       *       *       *


                        PART D--PUBLIC AIRPORTS

             CHAPTER 491--METROPOLITAN WASHINGTON AIRPORTS

           *       *       *       *       *       *       *


Sec. 49106. Metropolitan Washington Airports Authority

  (a) * * *

           *       *       *       *       *       *       *

  (c) Board of Directors.--(1) * * *

           *       *       *       *       *       *       *

  (6)(A) Not more than 2 of the members of the board appointed 
by the President may be of the same political party.
  (B) In carrying out their duties on the board, members 
appointed by the President shall ensure that adequate 
consideration is given to the national interest.
  [(C) The members to be appointed under paragraph (1)(D) of 
this subsection must be appointed before October 1, 1997. If 
the deadline is not met, the Secretary of Transportation and 
the Airports Authority are subject to the limitations of 
section 49108 of this title until all members referred to in 
paragraph (1)(D) are appointed.]
  [(D)] (C) A member appointed by the President may be removed 
by the President for cause.

           *       *       *       *       *       *       *


Sec. 49108. Limitations

  After October 1, [2001] 2004, the Secretary of Transportation 
may not approve an application of the Metropolitan Washington 
Airports Authority--
          (1) for an airport development project grant under 
        subchapter I of chapter 471 of this title; or
          (2) to impose a passenger facility fee under section 
        40117 of this title.

           *       *       *       *       *       *       *

                              ----------                              


          DEPARTMENT OF TRANSPORTATION AND RELATED AGENCIES 
                       APPROPRIATIONS ACT, 1996

           *       *       *       *       *       *       *



                               TITLE III


                           GENERAL PROVISIONS


(including transfers of funds)

           *       *       *       *       *       *       *


  Sec. 347. (a) * * *
  (b) The provisions of title 5, United States Code, shall not 
apply to the new personnel management system developed and 
implemented pursuant to subsection (a), with the exception of--
          (1) section 2302(b), relating to whistleblower 
        protection, including the provisions for investigation 
        and enforcement as provided in chapter 12 of title 5, 
        United States Code;

           *       *       *       *       *       *       *

          (6) chapter 81, relating to compensation for work 
        injury; [and]
          (7) chapters 83-85, 87, and 89, relating to 
        retirement, unemployment compensation, and insurance 
        coverage[.]; and
          (8) sections 1204, 1211-1218, 1221, and 7701-7703, 
        relating to the Merit Systems Protection Board.
  [(c) This section shall take effect on April 1, 1996.]
  (c) Appeals to Merit Systems Protection Board.--Under the new 
personnel management system developed and implemented under 
subsection (a), an employee of the Federal Aviation 
Administration may submit an appeal to the Merit Systems 
Protection Board and may seek judicial review of any resulting 
final orders or decisions of the Board from any action that was 
appealable to the Board under any law, rule, or regulation as 
of March 31, 1996.
  Sec. 348. (a) * * *

           *       *       *       *       *       *       *

  [(c) This section shall take effect on April 1, 1996.]
  (c) Contracts Extending Into a Subsequent Fiscal Year.--
Notwithstanding subsection (b)(3), the Administrator may enter 
into contracts for procurement of severable services that begin 
in one fiscal year and end in another if (without regard to any 
option to extend the period of the contract) the contract 
period does not exceed 1 year.

           *       *       *       *       *       *       *

                              ----------                              


                CENTENNIAL OF FLIGHT COMMEMORATION ACT

           *       *       *       *       *       *       *


SEC. 4. MEMBERSHIP.

  (a) Number and Appointment.--The Commission shall be composed 
of 6 members, as follows:
          (1) * * *

           *       *       *       *       *       *       *

          (5) As chosen by the Commission, the president or 
        head of a United States aeronautical society, 
        foundation, or organization of national stature or 
        prominence, or his designee, who will be a person from 
        a State other than Ohio or North Carolina.

           *       *       *       *       *       *       *

  (g) Status.--The members of the Commission described in 
paragraphs (1), (3), (4), and (5) of subsection (a) shall not 
be considered to be officers or employees of the United States.

SEC. 5. DUTIES.

  (a) In General.--The Commission shall--
          (1) * * *

           *       *       *       *       *       *       *

          [(7) encourage the publication of popular and 
        scholarly works related to the history of aviation or 
        the anniversary of the centennial of powered flight.]
          (7) as a nonprimary purpose, publish popular and 
        scholarly works related to the history of aviation or 
        the anniversary of the centennial of powered flight.

           *       *       *       *       *       *       *


SEC. 6. POWERS.

  (a) * * *

           *       *       *       *       *       *       *

  (e) Conflicts of Interest.--At its second business meeting, 
the Commission shall adopt a policy to protect against possible 
conflicts of interest involving its members and employees. The 
Commission shall consult with the Office of Government Ethics 
in the development of such a policy and shall recognize the 
status accorded its members under section 4(g).

SEC. 7. STAFF AND SUPPORT SERVICES.

  (a) Executive Director.--There shall be an Executive Director 
appointed by the Commission and chosen from among detailees 
from the agencies and organizations represented on the 
Commission[.] or represented on the First Flight Centennial 
Advisory Board under subparagraphs (A) through (E) of section 
12(b)(1). The Executive Director may be paid at a rate not to 
exceed the maximum rate of basic pay payable for the Senior 
Executive Service.

           *       *       *       *       *       *       *


SEC. 9. EXCLUSIVE RIGHT TO NAME, LOGOS, EMBLEMS, SEALS, AND MARKS.

  (a) * * *

           *       *       *       *       *       *       *

  (d) Use of Funds.--Funds from licensing royalties received 
pursuant to this section shall be used by the Commission to 
carry out the duties of the Commission specified by this 
Act[.], except that the Commission may transfer any portion of 
such funds that is in excess of the funds necessary to carry 
out such duties to any Federal agency or the National Air and 
Space Museum of the Smithsonian Institution to be used for the 
sole purpose of commemorating the history of aviation or the 
centennial of powered flight.

           *       *       *       *       *       *       *

  (f) Duties To Be Carried Out by Administrator of NASA.--The 
duties of the Commission under this section shall be carried 
out by the Administrator of the National Aeronautics and Space 
Administration, in consultation with the Commission.

           *       *       *       *       *       *       *

                              ----------                              


                          ACT OF JULY 5, 1994

AN ACT To revise, codify, and enact without substantive change certain 
general and permanent laws, related to transportation, as subtitles II, 
 III, and V-X of title 49, United States Code, ``Transportation'', and 
           to make other technical improvements in the Code.

                         conforming provisions

  Sec. 4. (a) * * *

           *       *       *       *       *       *       *

  [(k) Effective January 1, 1999, the following sections of 
title 49, United States Code, as enacted by section 1 of this 
Act, are amended as follows:
                  [(1) In sections 41107, 41901(b)(1), 
                41902(a), and 41903, strike ``transportation or 
                between places in Alaska'' wherever it appears 
                and substitute ``transportation''.
                  [(2) Strike section 41901(g).
                  [(3) In section 41902(b)--
                          [(A) strike clause (3); and
                          [(B) in clause (4), strike ``clauses 
                        (1)-(3)'' and substitute ``clauses (1) 
                        and (2)''.]

           *       *       *       *       *       *       *

                              ----------                              

                                     Committee on Commerce,
                                      Washington, DC, May 26, 1999.
Hon. Bud Shuster,
Chairman, Committee on Transportation and Infrastructure,
Rayburn House Office Building, Washington, DC.
    Dear Chairman Shuster: As you know, on March 11, 1999, the 
Committee on Transportation and Infrastructure ordered reported 
H.R. 1000, the Aviation Investment and Reform Act for the 21st 
Century Act. The environmental streamlining provisions of the 
bill are virtually identical to section 1309 of the conference 
report to accompany the Transportation Equity Act for the 21st 
Century (``TEA-21''; H.Rpt. 105-550). As you may recall, 
members of the Committee on Commerce were appointed as 
conferees on that provision during the TEA-21 conference.
    Because of the importance of legislation reauthorizing the 
Nation's aviation programs, I recognize your desire to bring 
this legislation before the House in an expeditious manner. 
Given that the environmental streamlining language is virtually 
identical to language agreed to by the Commerce Committee 
during the TEA-21 conference, I will not exercise the 
Committee's right to a sequential referral. By agreeing to 
waive its consideration of the bill, however, the Commerce 
Committee does not waive its jurisdiction over H.R. 1000. In 
addition, the Commerce Committee reserves its authority to seek 
conferees on any provisions of the bill that are within its 
jurisdiction during any House-Senate conference that may be 
convened on this legislation. I ask for your commitment to 
support any request by the Commerce Committee for conferees on 
H.R. 1000 or similar legislation.
    I request that you include this letter as a part of the 
Committee's report on H.R. 1000 and as part of the Record 
during consideration of the legislation on the House floor.
    Thank you for your attention to these matters.
            Sincerely,
                                                Tom Bliley,
                                                          Chairman.
                                ------                                

            Committee on Transportation and Infrastructure,
                                      Washington, DC, May 29, 1999.
Hon. Thomas Bliley,
Chairman, Committee on Commerce, Rayburn House Office Building, House 
        of Representatives, Washington, DC.
    Dear Mr. Chairman: Thank you for your letter of May 29, 
1999 regarding H.R. 1000, the Aviation Investment and Reform 
Act for the 21st Century. Your assistance in allowing prompt 
consideration of this bill is very much appreciated.
    I agree that the provision you have identified in your 
letter is of jurisdictional interest to the Committee on 
Commerce and I agree that by foregoing a sequential referral, 
the Committee on Commerce is not waiving its jurisdiction. Be 
assured that I will support your request to be represented in 
any conference committee with the Senate on this provision.
    As you requested, I will include this exchange of letter in 
the Committee report on this bill and in the Congressional 
Record when the bill is considered on the Floor. Thank you for 
your cooperation and your continued support of aviation 
matters.
    With warm personal regards, I am
            Sincerely,
                                               Bud Shuster,
                                                          Chairman.
                              ----------                              

                                    Committee on Resources,
                                      Washington, DC, May 27, 1999.
Hon. Bud Shuster,
Chairman, Committee on Transportation and Infrastructure
Rayburn HOB, Washington, DC.
    Dear Mr. Chairman: I have reviewed the text of H.R. 1000, 
the Aviation Investment and Reform Act for the 21st Century, 
and I believe that the Committee on Resources has a 
jurisdictional interest in several sections of the bill. These 
include: (1) Section 305, environmental streamlining [as it 
relates to the National Environmental Policy Act]; and (2) 
Title VIII, National Parks Air Tour Management. The latter is 
based on the text of H.R. 717, which was referred additionally 
to the Resources Committee this Congress.
    I have no objection to the environmental streamlining 
provision in H.R. 1000 and therefore will not seek a sequential 
referral of the bill based on its inclusion. I also understand 
that you have agreed to provide exceptions from the Title VIII 
program for the Lake Mead National Recreation Area. We 
appreciate your agreement on this issue.
    However, there appears to be an additional issue raised in 
connection with Title VIII. Based on testimony received by 
National Parks and Public Lands Subcommittee Chairman James 
Hansen at a hearing this week, it is clear that there is some 
concern about the regulation on noise as it relates to air 
tours over the Grand Canyon. A rational solution to this 
concern would be the incorporation of language in H.R. 1000 or 
an explanatory colloquy on the Floor during debate on the bill 
which requires a reasonable standard for regulation of air tour 
noise. This new provision could read:

          The air tour sound threshold and all other aircraft 
        sound standards for operation in the Grand Canyon shall 
        be based on valid and reasonable scientific sound 
        methodology and these threshold and sound standards 
        shall allow for the continued existence of a viable air 
        tour industry in the Grand Canyon.

This is a standard that the National Park Service supported in 
concept in testimony on May 25, 1999. Its inclusion in H.R. 
1000 is good government and should be noncontroversial. I 
understand that Chairman Hansen has spoken to Aviation 
Subcommittee Chairman John Duncan (who also serves on the 
Resources Committee) who is supportive of this language.
    Finally, I ask that any manager's amendment to the bill 
strike section 806 of H.R. 1000. This appears to duplicate (and 
expand unnecessarily) an existing Alaska provision found in the 
amendment made by section 803 of the bill.
    I hope that we can use this opportunity to correct some 
overreaching by the National Park Service in managing Grand 
Canyon air tours. I look forward to working with you and your 
staff.
            Sincerely,
                                                 Don Young,
                                                          Chairman.
                              ----------                              

            Committee on Transportation and Infrastructure,
                                      Washington, DC, May 29, 1999.
Hon. Don Young,
Chairman, Committee on Resources, Longworth House Office Building, 
        House of Representatives, Washington, DC.
    Dear Mr. Chairman: Thank you for your letter of May 29, 
1999 regarding H.R. 1000, The Aviation Investment and Reform 
Act for the 21st Century. Your assistance in allowing prompt 
consideration of this bill is very much appreciated.
    I agree that the provisions you have identified in your 
letter are of jurisdictional interest to the Committee on 
Resources and I agree that by foregoing a sequential referral, 
the Committee on Resources is not waiving its jurisdiction on 
those provisions.
    In particular, you have raised several issues with respect 
to the Title VIII of the bill, National Parks Air Tour 
Management. First, the Transportation Committee has reached an 
agreement with the Committee on Resources to provide an 
exception from this title regarding air tours that overfly the 
Lake Mead National Recreation Area as a transportation route on 
their way to fly an air tour of the Grand Canyon. This will be 
included in a Manager's amendment offered during floor 
consideration of H.R. 1000. Second, I and other members of the 
Transportation Committee agree that there is some concern about 
the regulation of noise as it relates to air tours over the 
Grand Canyon. As you know, this title of H.R. 1000 and its 
companion legislation, H.R. 717, are a result of a great deal 
of hard work and compromise by the competing interests that are 
affected by this bill. In addition, the Grand Canyon has been 
specifically exempted from this legislation by agreement of all 
parties. However, I would like to continue to work with you to 
reach an acceptable legislative compromise on this issue or an 
explanatory colloquy during Floor consideration of H.R. 1000.
    Finally, I will make every effort to accommodate your 
request regarding section 806 of the bill.
    I will include this exchange of letters in the Committee 
report on this bill. Thank you for your cooperation and your 
continued support of aviation matters.
    With warm personal regards, I am
            Sincerely,
                                               Bud Shuster,
                                                          Chairman.