I 
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 Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Rural Aviation Im-
provement Act’’. 
SEC. 2. REPEAL OF ESSENTIAL AIR SERVICE LOCAL PAR-
TICIPATION PROGRAM. 
(a) IN GENERAL.—Subchapter II of chapter 417 of 
title 49, United States Code, is amended by striking sec-
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tion 41747, and such title 49 shall be applied as if such 
section 41747 had not been enacted. 
(b) CLERICAL AMENDMENT.—The analysis for chap-
ter 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 fol-
lowing: 
‘‘(c) PER PASSENGER SUBSIDY CAP.— 
‘‘(1) IN GENERAL.—The Secretary of Transpor-
tation may not provide compensation to an air car-
rier to provide air transportation under this sub-
chapter to an otherwise eligible place in the 48 con-
tiguous 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 re-
quires a per passenger subsidy in excess of the 
dollar amount described in paragraph (2). 
‘‘(2) DOLLAR
AMOUNT
OF
PER
PASSENGER 
SUBSIDY.— 
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‘‘(A) IN GENERAL.—The dollar amount de-
scribed in this paragraph is— 
‘‘(i) for calendar year 2008, $200; 
and 
‘‘(ii) for each calendar year after cal-
endar 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 cal-
endar year exceeds the CPI for cal-
endar 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 cal-
endar year’ means the average of the Consumer 
Price Index as of the close of the 12-month pe-
riod ending on August 31 of such calendar 
year. 
‘‘(B) CONSUMER PRICE INDEX.—The term 
‘Consumer Price Index’ means the last Con-
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sumer Price Index for all-urban consumers pub-
lished 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 car-
rier 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 De-
partment of Transportation and Related Agencies Appro-
priations 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: 
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‘‘§ 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 transpor-
tation 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 ex-
ceeds the dollar amount allowable under section 
41742(c). 
‘‘(c) DECISIONS.—Not later than 90 days after re-
ceiving 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.— 
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‘‘(1) IN
GENERAL.—The Secretary shall pay 
compensation under this section at such time and in 
such manner as the Secretary determines is appro-
priate. 
‘‘(2) DURATION OF PAYMENTS.—The Secretary 
shall continue to pay compensation under this sec-
tion only as long as— 
‘‘(A) the State or local government or per-
son agreeing to pay compensation under sub-
section (c)(2) continues to pay such compensa-
tion; and 
‘‘(B) the Secretary decides the compensa-
tion is necessary to maintain air transportation 
to the place. 
‘‘(e) REVIEW.— 
‘‘(1) IN GENERAL.—The Secretary shall peri-
odically review the type and level of air service pro-
vided 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). 
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‘‘(f) ENDING, SUSPENDING, AND REDUCING AIR 
TRANSPORTATION.—An air carrier providing air transpor-
tation 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 transpor-
tation, the air carrier provides notice of the intent of the 
air carrier to end, suspend, or reduce such air transpor-
tation 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 chap-
ter 417 of title 49, United States Code, is amended by 
adding after the item relating to section 41748 the fol-
lowing 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 fol-
lowing: 
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‘‘§ 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 sub-
section (b) to provide air transportation to an eligible 
place. 
‘‘(b) PREFERRED AIR CARRIER DESCRIBED.—A pre-
ferred air carrier described in this subsection is an air car-
rier 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 low-
est cost bid to provide air transportation to the eligi-
ble place; and 
‘‘(3) is an air carrier that the affected commu-
nity prefers to provide air transportation to the eligi-
ble place instead of the air carrier that submits the 
lowest cost bid. 
‘‘(c) DECISIONS.—Not later than 90 days after re-
ceiving 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 Sec-
retary shall— 
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‘‘(1) decide whether to provide compensation 
for the preferred air carrier to provide air transpor-
tation 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 Sec-
retary 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 pre-
ferred 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 appro-
priate. 
‘‘(2) DURATION OF PAYMENTS.—The Secretary 
shall continue to pay compensation under this sec-
tion only as long as— 
‘‘(A) the State or local government or per-
son agreeing to pay compensation under sub-
section (c)(2) continues to pay such compensa-
tion; and 
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‘‘(B) the Secretary decides the compensa-
tion is necessary to maintain air transportation 
to the eligible place. 
‘‘(e) REVIEW.— 
‘‘(1) IN GENERAL.—The Secretary shall peri-
odically review the type and level of air service pro-
vided 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 con-
sultation with the affected community and the State 
or local government or person agreeing to pay com-
pensation 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 
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‘‘(3) the State or local government or person 
agreeing to pay compensation under subsection 
(c)(2). 
‘‘(g) PETITION TO TERMINATE SERVICE.—An af-
fected 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 ex-
pectations within the preferred carrier agreement as deter-
mined 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 chap-
ter 417 of title 49, United States Code, as amended by 
section 4, is further amended by adding after the item re-
lating to section 41749 the following new item: 
‘‘41750. Preferred essential air service.’’. 
SEC. 6. RESTORATION OF ELIGIBILITY TO A PLACE DETER-
MINED BY THE SECRETARY TO BE INELI-
GIBLE 
FOR 
SUBSIDIZED 
ESSENTIAL 
AIR 
SERVICE. 
Section 41733 of title 49, United States Code, is 
amended by adding at the end the following new sub-
section: 
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‘‘(f) RESTORATION OF ELIGIBILITY FOR SUBSIDIZED 
ESSENTIAL AIR SERVICE.— 
‘‘(1) IN GENERAL.—If the Secretary of Trans-
portation 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 Sec-
retary a proposal for restoring such eligibility. 
‘‘(2) DETERMINATION BY SECRETARY.—If the 
per passenger subsidy required by the proposal sub-
mitted by a State or local government under para-
graph (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 fol-
lowing: 
‘‘(c) CALCULATION OF HIGHWAY MILEAGE TO ME-
DIUM AND LARGE HUB AIRPORTS.— 
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‘‘(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 high-
way mileage shall be that of the most commonly 
used route, as identified under paragraph (2). 
‘‘(2) MOST COMMONLY USED ROUTE.—The Sec-
retary of Transportation shall identify the most com-
monly 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 Vi-
sion 100—Century of Aviation Reauthorization Act (Pub-
lic Law 108–176; 49 U.S.C. 41731 note) is repealed. 
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