Home > 105th Congressional Bills > S. 965 (es) To amend title II of the Hydrogen Future Act of 1996 to extend an authorization contained therein, and for other purposes. ...S. 965 (es) To amend title II of the Hydrogen Future Act of 1996 to extend an authorization contained therein, and for other purposes. ...
108th CONGRESS
1st Session
S. 964
To reauthorize the essential air service program under chapter 471 of
title 49, United States Code, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 30, 2003
Mr. Lott (for himself and Mr. Rockefeller) introduced the following
bill; which was read twice and referred to the Committee on Commerce,
Science, and Transportation
_______________________________________________________________________
A BILL
To reauthorize the essential air service program under chapter 471 of
title 49, United States Code, 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 ``Small Community and Rural Air
Service Revitalization Act of 2003''.
SEC. 2. REAUTHORIZATION OF ESSENTIAL AIR SERVICE PROGRAM.
Section 41742(a) of title 49, United States Code, is amended to
read as follows:
``(a) In General.--There are authorized to be appropriated to the
Secretary of Transportation to carry out the essential air service
under this subchapter, $113,000,000 for each of fiscal years 2004
through 2007, $50,000,000 of which for each such year shall be derived
from amounts received by the Federal Aviation Administration credited
to the account established under section 45303 of this title or
otherwise provided to the Administration.''.
SEC. 3. INCENTIVE PROGRAM.
(a) In General.--Chapter 417 of title 49, United States Code, is
amended by adding at the end the following:
``SUBCHAPTER IV--MARKETING INCENTIVE PROGRAM
``Sec. 41781. Purpose.
``Sec. 41782. Marketing program.
``Sec. 41783. State marketing assistance.
``Sec. 41784. Definitions.
``Sec. 41785. Authorization of appropriations.
``Sec. 41781. Purposes
``The purposes of this subchapter are--
``(1) to enable essential air service communities to
increase boardings and the level of passenger usage of airport
facilities at an eligible place by providing technical,
financial, and other marketing assistance to such communities
and to States;
``(2) to reduce subsidy costs under subchapter II of this
chapter as a consequence of such increased usage; and
``(3) to provide such communities with opportunities to
obtain, retain, and improve transportation services.
``Sec. 41782. Marketing program
``(a) In General.--The Secretary of Transportation shall establish
a marketing incentive program for eligible essential air service
communities receiving assistance under subchapter II under which the
airport sponsor in such a community may receive a grant of not more
than $50,000 to develop and implement a marketing plan to increase
passenger boardings and the level of passenger usage of its airport
facilities.
``(b) Matching Requirement; Success Bonuses--
``(1) In general.--Except as provided in paragraphs (2) and
(3), not less than 25 percent of the publicly financed costs
associated with the marketing plan shall come from non-Federal
sources. For purposes of this paragraph--
``(A) the non-Federal portion of the publicly
financed costs may be derived from contributions in
kind; and
``(B) State or local matching contributions may not
be derived, directly or indirectly, from Federal funds,
but the use by a state or local government of proceeds
from the sale of bonds to provide the matching
contribution is not considered to be a contribution
derived directly or indirectly from Federal funds,
without regard to the Federal income tax treatment of
interest paid on those bonds or the Federal income tax
treatment of those bonds.
``(2) Bonus for 25-percent increase in usage.--Except as
provided in paragraph (3), if, after any 12-month period during
which a marketing plan has been in effect, the Secretary
determines that the marketing plan has increased average
monthly boardings, or the level of passenger usage, at the
airport facilities at the eligible place, by 25 percent or
more, then only 10 percent of the publicly financed costs
associated with the marketing plan shall be required to come
from non-Federal sources for the following 12-month period.
``(3) Bonus for 50-percent increase in usage.--If, after
any 12-month period during which a marketing plan has been in
effect, the Secretary determines that the marketing plan has
increased average monthly boardings, or the level of passenger
usage, at the airport facilities at the eligible place, by 50 percent
or more, then no portion of the publicly financed costs associated with
the marketing plan shall be required to come from non-Federal sources
for the following 12-month period.
``Sec. 41783. State marketing assistance
The Secretary of Transportation may provide up to $50,000 in
technical assistance to any State within which an eligible essential
air service community is located for the purpose of assisting the State
and such communities to develop methods to increase boardings in such
communities. At least 10 percent of the costs of the activity with
which the assistance is associated shall come from non-Federal sources,
including contributions in kind.
``Sec. 41784. Definitions
``In this subchapter:
``(1) Eligible place.--The term `eligible place' has the
meaning given that term in section 41731(a)(1).
``(2) Eligible essential air service community.--The term
`eligible essential air service community' means an eligible
place that--
``(A) submits an application to the Secretary in
such form, at such time, and containing such
information as the Secretary may require, including a
detailed marketing plan, or specifications for the
development of such a plan, to increase average
boardings, or the level of passenger usage, at its
airport facilities; and
``(B) provides assurances, satisfactory to the
Secretary, that it is able to meet the non-Federal
funding requirements of section 41782(b)(1).
``(3) Passenger boardings.--The term `passenger boardings'
has the meaning given that term by section 47102(10).
``(4) Sponsor.--The term `sponsor' has the meaning given
that term in section 47102(19).
``Sec. 41785. Authorization of appropriations
``There are authorized to be appropriated to the Secretary of
Transportation $12,000,000 for each of fiscal years 2004 through 2007,
not more than $200,000 per year of which may be used for administrative
costs.''.
(b) Conforming Amendment.--The chapter analysis for chapter 417 of
such title is amended by inserting after the item relating to section
41767 the following:
``subchapter iv--marketing incentive program
``41781. Purpose.
``41782. Marketing program.
``41783. State marketing assistance.
``41784. Definitions.
``41785. Authorization of appropriations.''.
SEC. 4. PILOT PROGRAMS.
(a) In General.--Subchapter II of chapter 417 of title 49, United
States Code, is amended by adding at the end the following:
``Sec. 41745. Other pilot programs
``(a) In General.--If the entire amount authorized to be
appropriated to the Secretary of Transportation by section 41785 is
appropriated for fiscal years 2004 through 2007, the Secretary of
Transportation shall establish pilot programs that meet the
requirements of this section for improving service to communities
receiving essential air service assistance under this subchapter or
consortia of such communities.
``(b) Programs Authorized.--
``(1) Community flexibility.--The Secretary shall establish
a pilot program for not more than 10 communities or consortia
of communities under which the airport sponsor of an airport
serving the community or consortium may elect to forego any
essential air service assistance under preceding sections of
this subchapter for a 10-year period in exchange for a grant
from the Secretary equal in value to twice the annual essential
air service assistance received for the most recently ended
calendar year. Under the program, and notwithstanding any
provision of law to the contrary, the Secretary shall make a
grant to each participating sponsor for use by the recipient
for any project that--
``(A) is eligible for assistance under chapter 471;
``(B) is located on the airport property; or
``(C) will improve airport facilities in a way that
would make such facilities more usable for general
aviation.
``(2) Equipment changes.--
``(A) In General.--The Secretary shall establish a
pilot program for not more than 10 communities or
consortia of communities under which, upon receiving a
petition from the sponsor of the airport serving the
community or consortium, the Secretary shall authorize
and request the essential air service provider for that
community or consortium to use smaller equipment to
provide the service and to consider increasing the
frequency of service using such smaller equipment.
Before granting any such petition, the Secretary shall
determine that passenger safety would not be
compromised by the use of such smaller equipment.
``(B) Alternative services.--For any 3 aiport
sponsors participating in the program established under
subparagraph (A), the Secretary may establish a pilot
program under which--
``(i) the Secretary provides 100 percent
Federal funding for reasonable levels of
alternative transportation services from the
eligible place to the nearest hub airport or
small hub airport;
``(ii) the Secretary will authorize the
sponsor to use its essential air service
subsidy funds provided under preceding sections
of this subchapter for any airport-related
project that would improve airport facilities;
and
``(iii) the sponsor may make an irrevocable
election to terminate its participation in the
pilot program established under this paragraph
after 1 year.
``(3) Cost-sharing.--The Secretary shall establish a pilot
program under which the sponsors of airports serving a
community or consortium of communities share the cost of
providing air transportation service greater than the basic
essential air service provided under this subchapter.
``(4) EAS local participation program.--
``(A) In general.--The Secretary of Transportation
shall establish a pilot program under which designated
essential air service communities located in proximity
to hub airports are required to assume 10 percent of
their essential air service subsidy costs for a 3-year
period.
``(B) Designation of communities.--
``(i) In general.--The Secretary may not
designate any community under this paragraph
unless it is located within 100 miles by road
of a hub airport and is not located in a
noncontiguous State. In making the designation,
the Secretary may take into consideration the
total traveltime between a community and the
nearest hub airport, taking into account
terrain, traffic, weather, road conditions, and
other relevant factors.
``(ii) One community per state.--The
Secretary may not designate--
``(I) more than 1 community per
State under this paragraph; or
``(II) a community in a State in
which another community that is
eligible to participate in the
essential air service program has
elected not to participate in the
essential air service program.
``(C) Appeal of designation.--A community may
appeal its designation under this section. The
Secretary may withdraw the designation of a community
under this paragraph based on--
``(i) the airport sponsor's ability to pay;
or
``(ii) the relative lack of financial
resources in a community, based on a comparison
of the median income of the community with
other communities in the State.
``(D) Non-federal share.--
``(i) Non-federal amounts.--For purposes of
this section, the non-Federal portion of the
essential air service subsidy may be derived
from contributions in kind, or through
reduction in the amount of the essential air
service subsidy through reduction of air
carrier costs, increased ridership, pre-
purchase of tickets, or other means. The
Secretary shall provide assistance to
designated communities in identifying potential
means of reducing the amount of the subsidy
without adversely affecting air transportation
service to the community.
``(ii) Application with other matching
requirements.--This section shall apply to the
Federal share of essential air service provided
this subchapter, after the application of any
other non-Federal share matching requirements
imposed by law.
``(E) Eligibility for other programs not
affected.--Nothing in this paragraph affects the
eligibility of a community or consortium of
communities, an airport sponsor, or any other person to
participate in any program authorized by this
subchapter. A community designated under this paragraph
may participate in any program (including pilot
programs) authorized by this subchapter for which it is
otherwise eligible--
``(i) without regard to any limitation on
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