SECTION 1. SHORT TITLE; FINDINGS.

    (a) Short Title.--This Act may be cited as the ``Rural Air Service 
Survival Act''.
    (b) Findings.--Congress finds that--
            (1) air service in rural areas is essential to a national 
        transportation network;
            (2) the rural air service infrastructure supports the safe 
        operation of all air travel;
            (3) rural air service creates economic benefits for all air 
        carriers by making the national aviation system available to 
        passengers from rural areas;
            (4) rural air service has suffered since deregulation;
            (5) the essential air service program under the Department 
        of Transportation--
                    (A) provides essential airline access to rural and 
                isolated rural communities throughout the Nation;
                    (B) is necessary for the economic growth and 
                development of rural communities;
                    (C) is a critical component of the national 
                transportation system of the United States; and
                    (D) has endured serious funding cuts in recent 
                years; and
            (6) a reliable source of funding must be established to 
        maintain air service in rural areas and the essential air 
        service program.

SEC. 2. FEES TO FINANCE ESSENTIAL AIR SERVICE PROGRAM.

    (a) In General.--Chapter 401 of title 49, United States Code, is 
amended by adding at the end the following:
``Sec. 40121. Fees to finance essential air service program
    ``(a) Establishment of Fees.--
            ``(1) In general.--Not later than 6 months after the 
        effective date of this section, the Federal Aviation 
        Administration shall establish and begin collecting fees for 
        the following services provided by the Federal Aviation 
        Administration:
                    ``(A) Services (other than air traffic control 
                services) provided to a foreign government.
                    ``(B) Air traffic control services for flights over 
                the United States or its territories by air carriers 
                that neither arrive at nor depart from a United States 
                airport (other than such flights by foreign government 
                aircraft engaged in official business).
            ``(2) Considerations.--In establishing fees under paragraph 
        (1), the Administration shall consider the fair value, or cost, 
        of the service provided by the Administration.
            ``(3) Deposit of proceeds.--The Administration shall 
        deposit all proceeds from fees collected under paragraph (1) in 
        the account established by subsection (b)(1).
    ``(b) Account in the Treasury.--
            ``(1) Establishment.--There is established in the Treasury 
        of the United States a separate account which shall consist of 
        amounts deposited into the account by the Administration under 
        subsection (a)(3).
            ``(2) Availability of amounts.--
                    ``(A) In general.--Funds in the account established 
                by paragraph (1) shall be available to the 
                Administration to pay compensation to air carriers 
                under the essential air service program established by 
                subchapter II of chapter 417 of this title.
                    ``(B) Unobligated funds.--Any unobligated funds 
                remaining in the account at the end of a fiscal year 
                shall be available to the Administration for safety-
                related projects at airports for which essential air 
                service is provided under subchapter II of chapter 417 
                of this title. Such projects shall be subject to the 
                requirements of subchapter I of chapter 471 of this 
                title.
            ``(3) Reporting of transactions.--For each fiscal year, the 
        Administration shall transmit to Congress a report on the 
        receipts, obligations, and expenditures of funds in the account 
        established by paragraph (1).''.
    (b) Conforming Amendment.--The table of sections at the beginning 
of such chapter is amended by adding at the end the following new item:

``40121. Fees to finance essential air service program.''.

SEC. 3. MODIFICATIONS TO ESSENTIAL AIR SERVICE PROGRAM.

    (a) Administration by FAA.--Subchapter II of chapter 417 of title 
49, United States Code, is amended--
            (1) by striking ``Secretary of Transportation'' each place 
        it appears (other than section 41733(a)) and inserting 
        ``Federal Aviation Administration'';
            (2) by striking ``Secretary'' each place it appears (other 
        than section 41733(a)) and inserting ``Administration'';
            (3) by striking ``Administrator of the Federal Aviation'' 
        each place it appears; and
            (4) in section 41733(b)(1), as amended by paragraph (2) of 
        this subsection, by inserting ``Federal Aviation'' before 
        ``Administration'' the first place it appears.
    (b) Matching Funds.--Section 41737 of title 49, United States Code, 
is amended by adding at the end the following:
    ``(f) Matching Funds.--No earlier than 2 years after the effective 
date of this subsection, the Administration may require a public agency 
that controls a commercial service airport (as defined by section 
47102(7) of this title) to provide matching funds for compensation 
provided under this subchapter for basic essential air service to the 
airport in an amount not to exceed 10 percent of the amount of the 
compensation.''.
    (c) Elimination of Sunset.--Subchapter II of chapter 417 of title 
49, United States Code, is amended--
            (1) by striking section 41742; and
            (2) by striking the item relating to section 41742 in the 
        analysis of such subchapter.

SEC. 4. EFFECTIVE DATE.

    This Act and the amendments made by this Act shall take effect on 
the first day of the first fiscal year beginning after the date of the 
enactment of this Act.
Rural Air Service Survival Act - Amends Federal aviation law to direct the Federal Aviation Administration (FAA) to begin collecting fees for the following FAA-provided services:  (1) services (other than air traffic control) provided to a foreign government; and (2) air traffic control services for flights over the United States or its territories by air carriers that neither arrive at nor depart from a U.S. airport (other than such flights by foreign government aircraft engaged in official business). Directs the FAA to deposit the proceeds from such fees in a separate account in the Treasury. 
Makes the FAA, instead of the Secretary of Transportation, the administrator of the essential air service program. 
Authorizes the FAA to require an eligible public agency that controls a commercial service airport to provide for basic essential air service matching funds of up to ten percent of the amount of Federal compensation received.
Rural Air Service Survival Act