Rural Aviation Improvement Act - Repeals the Essential Air Service Local Participation Program.
Prohibits the Secretary of Transportation from compensating an air carrier for providing essential air service to an eligible community in the 48 contiguous states if such community: (1) is located fewer than 70 miles from the nearest large or medium hub airport; or (2) is fewer than 210 miles from the nearest large or medium hub airport and requires a per passenger subsidy for such service in excess of $200 for calendar year 2008, including any increase for each ensuing calendar year.
Authorizes a state or local government to submit a proposal to the Secretary to: (1) compensate an air carrier for essential air service to an eligible community above the $200 per passenger subsidy cap; (2) compensate a preferred air carrier for providing such service (i.e., an air carrier preferred by the affected community although it is not the lowest bidder); and (3) restore the eligibility of a community to receive subsidized essential air service.
Requires the Secretary, in determining compensation (or eligibility for it) for essential air service based on highway mileage, to use the highway mileage of the most commonly used route between the eligible community and the nearest medium hub airport or large hub airport.
Establishes within the Office of the Secretary the Office of Rural Aviation.
Extends through FY2011 the Secretary's authority under the essential air service program to make agreements to provide assistance to underserved airports.
Requires adjustment of compensation to air carriers for providing essential air service in order to take into account significant increases in fuel costs.
Directs the Secretary to treat passenger boardings on aircraft operated by charter air carriers at airports receiving essential air service as passenger boardings for purposes of making apportionments of airport improvement grant funds.
[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3004 Introduced in House (IH)]
110th CONGRESS
1st Session
H. R. 3004
To reform the essential air service program, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 11, 2007
Mr. Salazar (for himself and Mr. Peterson of Pennsylvania) introduced
the following bill; which was referred to the Committee on
Transportation and Infrastructure
_______________________________________________________________________
A BILL
To reform the essential air service program, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Rural Aviation Improvement Act''.
SEC. 2. REPEAL OF ESSENTIAL AIR SERVICE LOCAL PARTICIPATION PROGRAM.
(a) In General.--Subchapter II of chapter 417 of title 49, United
States Code, is amended by striking section 41747, and such title 49
shall be applied as if such section 41747 had not been enacted.
(b) Clerical Amendment.--The analysis for chapter 417 of title 49,
United States Code, is amended by striking the item relating to section
41747.
SEC. 3. PER PASSENGER SUBSIDY FOR ESSENTIAL AIR SERVICE.
(a) In General.--Section 41742 of title 49, United States Code, is
amended by adding at the end the following:
``(c) Per Passenger Subsidy Cap.--
``(1) In general.--The Secretary of Transportation may not
provide compensation to an air carrier to provide air
transportation under this subchapter to an otherwise eligible
place in the 48 contiguous States if the eligible place--
``(A) is located fewer than 70 highway miles from
the nearest large or medium hub airport; or
``(B) is fewer than 210 miles from the nearest
large or medium hub airport and requires a per
passenger subsidy in excess of the dollar amount
described in paragraph (2).
``(2) Dollar amount of per passenger subsidy.--
``(A) In general.--The dollar amount described in
this paragraph is--
``(i) for calendar year 2008, $200; and
``(ii) for each calendar year after
calendar year 2008, $200 increased by an amount
equal to--
``(I) $200, multiplied by
``(II) the percentage (if any) by
which the CPI for the preceding
calendar year exceeds the CPI for
calendar year 2007.
``(B) Rounding.--Any increase under subparagraph
(A)(ii) shall be rounded to the nearest dollar.
``(3) Definitions.--In this subsection:
``(A) CPI for the preceding calendar year.--The
term `CPI for the preceding calendar year' means the
average of the Consumer Price Index as of the close of
the 12-month period ending on August 31 of such
calendar year.
``(B) Consumer price index.--The term `Consumer
Price Index' means the last Consumer Price Index for
all-urban consumers published by the Department of
Labor.''.
(b) Per Passenger Subsidy Defined.--Section 41731(a) of title 49,
United States Code, is amended by adding at the end the following:
``(3) `per passenger subsidy' means--
``(A) the total compensation provided by the
Secretary of Transportation to an air carrier under
this subchapter that is necessary for the air carrier
to provide air transportation to an eligible place,
divided by
``(B) the total number of passengers using such air
transportation.''.
(c) Conforming Repeal.--Section 332 of the Department of
Transportation and Related Agencies Appropriations Act, 2000 (Public
Law 106-69; 49 U.S.C. 41731 note) is repealed.
SEC. 4. COMMUNITIES ABOVE PER PASSENGER SUBSIDY CAP.
(a) In General.--Subchapter II of chapter 417 of title 49, United
States Code, is amended by adding at the end the following:
``Sec. 41749. Essential air service for eligible places above per
passenger subsidy cap
``(a) Proposals.--A State or local government may submit a proposal
to the Secretary of Transportation for compensation for an air carrier
to provide air transportation to a place described in subsection (b).
``(b) Place Described.--A place described in this subsection is a
place--
``(1) that is otherwise an eligible place; and
``(2) for which the per passenger subsidy exceeds the
dollar amount allowable under section 41742(c).
``(c) Decisions.--Not later than 90 days after receiving a proposal
under subsection (a) for compensation for an air carrier to provide air
transportation to a place described in subsection (b), the Secretary
shall--
``(1) decide whether to provide compensation for the air
carrier to provide air transportation to the place; and
``(2) approve the proposal if the State or local government
or a person is willing and able to pay the difference between--
``(A) the per passenger subsidy; and
``(B) the dollar amount allowable for such subsidy
under section 41742(c).
``(d) Compensation Payments.--
``(1) In general.--The Secretary shall pay compensation
under this section at such time and in such manner as the
Secretary determines is appropriate.
``(2) Duration of payments.--The Secretary shall continue
to pay compensation under this section only as long as--
``(A) the State or local government or person
agreeing to pay compensation under subsection (c)(2)
continues to pay such compensation; and
``(B) the Secretary decides the compensation is
necessary to maintain air transportation to the place.
``(e) Review.--
``(1) In general.--The Secretary shall periodically review
the type and level of air service provided under this section.
``(2) Consultation.--The Secretary may make appropriate
adjustments in the type and level of air service to a place
under this section based on the review under paragraph (1) and
consultation with the affected community and the State or local
government or person agreeing to pay compensation under
subsection (c)(2).
``(f) Ending, Suspending, and Reducing Air Transportation.--An air
carrier providing air transportation to a place under this section may
end, suspend, or reduce such air transportation if, not later than 30
days before ending, suspending, or reducing such air transportation,
the air carrier provides notice of the intent of the air carrier to
end, suspend, or reduce such air transportation to--
``(1) the Secretary;
``(2) the affected community; and
``(3) the State or local government or person agreeing to
pay compensation under subsection (c)(2).''.
(b) Clerical Amendment.--The analysis for chapter 417 of title 49,
United States Code, is amended by adding after the item relating to
section 41748 the following new item:
``41749. Essential air service for eligible places above per passenger
subsidy cap.''.
SEC. 5. PREFERRED ESSENTIAL AIR SERVICE.
(a) In General.--Subchapter II of chapter 417 of title 49, United
States Code, as amended by section 4, is further amended by adding
after section 41749 the following:
``Sec. 41750. Preferred essential air service
``(a) Proposals.--A State or local government may submit a proposal
to the Secretary of Transportation for compensation for a preferred air
carrier described in subsection (b) to provide air transportation to an
eligible place.
``(b) Preferred Air Carrier Described.--A preferred air carrier
described in this subsection is an air carrier that--
``(1) submits an application under section 41733(c) to
provide air transportation to an eligible place;
``(2) is not the air carrier that submits the lowest cost
bid to provide air transportation to the eligible place; and
``(3) is an air carrier that the affected community prefers
to provide air transportation to the eligible place instead of
the air carrier that submits the lowest cost bid.
``(c) Decisions.--Not later than 90 days after receiving a proposal
under subsection (a) for compensation for a preferred air carrier
described in subsection (b) to provide air transportation to an
eligible place, the Secretary shall--
``(1) decide whether to provide compensation for the
preferred air carrier to provide air transportation to the
eligible place; and
``(2) approve the proposal if the State or local government
or a person is willing and able to pay the difference between--
``(A) the rate of compensation the Secretary would
provide to the preferred air carrier that submits the
lowest cost bid to provide air transportation to the
eligible place; and
``(B) the rate of compensation the preferred air
carrier estimates to be necessary to provide air
transportation to the eligible place.
``(d) Compensation Payments.--
``(1) In general.--The Secretary shall pay compensation
under this section at such time and in such manner as the
Secretary determines is appropriate.
``(2) Duration of payments.--The Secretary shall continue
to pay compensation under this section only as long as--
``(A) the State or local government or person
agreeing to pay compensation under subsection (c)(2)
continues to pay such compensation; and
``(B) the Secretary decides the compensation is
necessary to maintain air transportation to the
eligible place.
``(e) Review.--
``(1) In general.--The Secretary shall periodically review
the type and level of air service provided under this section.
``(2) Consultation.--The Secretary may make appropriate
adjustments in the type and level of air service to an eligible
place under this section based on the review under paragraph
(1) and consultation with the affected community and the State
or local government or person agreeing to pay compensation
under subsection (c)(2).
``(f) Ending, Suspending, and Reducing Air Transportation.--A
preferred air carrier providing air transportation to an eligible place
under this section may end, suspend, or reduce such air transportation
if, not later than 30 days before ending, suspending, or reducing such
air transportation, the preferred air carrier provides notice of the
intent of the preferred air carrier to end, suspend, or reduce such air
transportation to--
``(1) the Secretary;
``(2) the affected community; and
``(3) the State or local government or person agreeing to
pay compensation under subsection (c)(2).
``(g) Petition To Terminate Service.--An affected community, State
or local government, or person agreeing to pay compensation under
subsection (c)(2) may petition the Secretary at anytime to terminate
service from the preferred carrier if the carrier does not meet
expectations within the preferred carrier agreement as determined by
the Secretary, at which time the Secretary may terminate the existing
service and accept new proposals from other carriers and allow a new
preferred carrier to begin service within 90 days of such
termination.''.
(b) Clerical Amendment.--The analysis for chapter 417 of title 49,
United States Code, as amended by section 4, is further amended by
adding after the item relating to section 41749 the following new item:
``41750. Preferred essential air service.''.
SEC. 6. RESTORATION OF ELIGIBILITY TO A PLACE DETERMINED BY THE
SECRETARY TO BE INELIGIBLE FOR SUBSIDIZED ESSENTIAL AIR
SERVICE.
Section 41733 of title 49, United States Code, is amended by adding
at the end the following new subsection:
``(f) Restoration of Eligibility for Subsidized Essential Air
Service.--
``(1) In general.--If the Secretary of Transportation
terminates the eligibility of an otherwise eligible place to
receive basic essential air service by an air carrier for
compensation under subsection (c), a State or local government
may submit to the Secretary a proposal for restoring such
eligibility.
``(2) Determination by secretary.--If the per passenger
subsidy required by the proposal submitted by a State or local
government under paragraph (1) does not exceed the per
passenger subsidy cap provided under section 41742(c), the
Secretary shall issue an order restoring the eligibility of the
otherwise eligible place to receive basic essential air service
by an air carrier for compensation under subsection (c).''.
SEC. 7. CALCULATION OF HIGHWAY MILEAGE TO MEDIUM AND LARGE HUB
AIRPORTS.
(a) In General.--Section 41731 of title 49, United States Code, is
amended by adding at the end the following:
``(c) Calculation of Highway Mileage to Medium and Large Hub
Airports.--
``(1) In general.--In any determination under this
subchapter of compensation or eligibility for compensation for
essential air service based on the highway mileage of an
eligible place from the nearest medium hub airport or large hub
airport, the highway mileage shall be that of the most commonly
used route, as identified under paragraph (2).
``(2) Most commonly used route.--The Secretary of
Transportation shall identify the most commonly used route
between an eligible place and the nearest medium hub airport or
large hub airport by--
``(A) consulting with the Governor or a designee of
the Governor in the State in which the eligible place
is located; and
``(B) considering the certification of the Governor
or a designee of the Governor as to the most commonly
used route.
``(3) Applicability.--This subsection shall apply only to
eligible places in the 48 contiguous States and the District of
Columbia.''.
(b) Conforming Amendment.--Section 409 of Vision 100--Century of
Aviation Reauthorization Act (Public Law 108-176; 49 U.S.C. 41731 note)
is repealed.
SEC. 8. OFFICE OF RURAL AVIATION.
(a) Establishment.--There is established within the Office of the
Secretary of Transportation the Office of Rural Aviation (referred to
in this section as the ``Office'').
(b) Functions.--The functions of the Office are--
(1) to develop a uniform 4-year contract for air carriers
providing essential air service to communities under subchapter
II of chapter 417 of title 49, United States Code;
(2) to develop a mechanism for comparing applications
submitted by air carriers under section 41733(c) to provide
essential air service to communities, including comparing--
(A) estimates from air carriers on--
(i) the cost of providing essential air
service; and
(ii) the revenues air carriers expect to
receive when providing essential air service;
and
(B) estimated schedules for air transportation; and
(3) to select an air carrier from among air carriers
applying to provide essential air service, based on the
criteria described in paragraph (2).
SEC. 9. EXTENSION OF AUTHORITY TO MAKE AGREEMENTS UNDER THE ESSENTIAL
AIR SERVICE PROGRAM.
Section 41743(e)(2) of title 49, United States Code, is amended by
striking ``2008'' and inserting ``2011''.
SEC. 10. ADJUSTMENTS TO COMPENSATION FOR SIGNIFICANTLY INCREASED COSTS.
Section 41737 of title 49, United States Code, is amended--
(1) in subsection (a)(1)--
(A) in subparagraph (B), by striking ``; and'' and
inserting a semicolon;
(B) in subparagraph (C), by striking the period and
inserting ``; and''; and
(C) by adding at the end the following:
``(D) provide for an adjustment in compensation to
account for significant increases in fuel costs, in
accordance with subsection (e).''; and
(2) in subsection (e)--
(A) in paragraph (1), by striking ``may'' and
inserting ``shall''; and
(B) in paragraph (2), by striking ``may'' and
inserting ``shall''.
SEC. 11. CHARTER AIR CARRIER PASSENGER BOARDINGS.
Notwithstanding any other provision of law, the Secretary of
Transportation shall treat passenger boardings on aircraft operated by
charter air carriers at airports receiving essential air service under
subchapter II of chapter 417 of title 49, United States Code, as
passenger boardings for purposes of section 47114(c)(1)(E) of such
title.
SEC. 12. AUTHORIZATION OF APPROPRIATIONS FOR ESSENTIAL AIR SERVICE.
(a) Adjustment to Authorization of Appropriations.--Section 41742
of title 49, United States Code, is amended--
(1) in subsection (a)(2), by striking ``$77,000,000'' and
inserting ``$40,000,000''; and
(2) in subsection (b), by striking ``Notwithstanding
section 47114'' and all that follows.
(b) Funds From Airport and Airway Trust Fund.--Section 41737(d)(2)
of title 49, United States Code, is amended to read as follows:
``(2) In addition to amounts authorized to be appropriated
under section 41742(a), not more than $50,000,000 shall be
available to the Secretary out of the Fund for each of the
fiscal years 2008 through 2011 to incur obligations under this
section. Amounts made available under this section remain
available until expended.''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Transportation and Infrastructure.
Referred to the Subcommittee on Aviation.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line