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(2) by inserting the phrase ‘‘to less than
$1,900,000,000’’ after the phrase ‘‘to be obligated’’,
and by deleting the phrase ‘‘limited or reduced’’.
SEC. 111. USE OF APPORTIONED AND DISCRETIONARY
FUNDS.
Section 508(d) of the Airport and Airway Improve-
ment Act of 1982, as amended (49 U.S.C. App. 2207(d)),
is amended—
(1) by striking the number ‘‘10’’ in paragraph
(1) and inserting in lieu thereof the number ‘‘5’’;
(2) by inserting the phrase ‘‘and for the pur-
poses of section 535 of this title’’ in paragraph (2)
after the phrase ‘‘104(c) of such Act’’;
(3) by striking the number ‘‘2.5’’ in paragraph
(3) wherever it appears and inserting in lieu thereof
the number ‘‘1.5’’; and
(4) by striking the words ‘‘each of’’ immediately
before the phrase ‘‘fiscal years 1994’’ in paragraph
(5) and by striking the year ‘‘1995’’ in paragraph
(5) and inserting in lieu thereof the word ‘‘there-
after’’.
SEC. 112. MILITARY AIRPORT PROGRAM.
Section 508(f) of the Airport and Airway Improve-
ment Act of 1982, as amended (49 U.S.C. App. 2207(f)),
is amended—
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(1) by striking the caption ‘‘DESIGNATION OF
CURRENT OR FORMER MILITARY AIRPORTS’’ and
inserting in lieu thereof ‘‘MILITARY AIRPORT PRO-
GRAM’’;
(2) by striking paragraph (1) and inserting the
following in lieu thereof:
‘‘(1) DESIGNATION.—The Secretary may des-
ignate one or more military airports to receive funds
distributed under subsection (d)(5) of this section.
Airports designated under this subsection prior to
the enactment of the Aviation Investment Act of
1994, shall remain eligible to receive grants under
section 508(d)(5), as amended by the Aviation In-
vestment Act of 1994, subject to 508(f)(3) as in ef-
fect prior to the enactment of the Aviation Invest-
ment Act of 1994.’’;
(3) by deleting paragraph (2);
(4) by deleting in paragraph (3) the phrase
‘‘and in conducting the survey under paragraph (2)’’
and by deleting everything after the phrase ‘‘con-
sider only those’’ and inserting the following in lieu
thereof: ‘‘military airports listed in the reports is-
sued by the Defense Base Closure and Realignment
Commission whose conversion, in whole or in part,
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would enhance civil airport and air traffic control
system capacity.’’;
(5) by striking the second sentence in para-
graph (4);
(6) by striking ‘‘for fiscal years 1993, 1994,
and 1995’’ in paragraph (6); and
(7) by renumbering paragraphs (3) through (6)
as paragraphs (2) through (5), respectively, and by
adding a new paragraph (6) to read as follows:
‘‘(6) SHORT-TERM FUNDING FOR OPERATIONS
AND MANAGEMENT.—The Secretary may designate
military airport program participants to obtain
grants to operate, maintain, and repair airport fa-
cilities during the transition to civil operations, sub-
ject to such assurances as the Secretary may con-
sider necessary. No participant may receive more
than $250,000 under this paragraph.’’
SEC. 113. SUBMISSION AND APPROVAL OF PROJECT GRANT
APPLICATIONS.
Section 509(a)(3) of the Airport and Airway Im-
provement Act of 1982, as amended (49 U.S.C. App.
2208(a)(3)), is amended by striking the number ‘‘2’’
wherever it appears and inserting ‘‘1’’ in lieu thereof, and
by striking the word ‘‘similar’’.
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SEC. 114. REIMBURSEMENT FOR CERTAIN PAST EXPENDI-
TURES.
Section 513(a)(2) of the Airport and Airway Im-
provement Act of 1982, as amended (49 U.S.C. App.
2212(a)(2)), is amended—
(1) by striking the word ‘‘or’’ at the end of sub-
paragraph (A) and by adding the word ‘‘or’’ imme-
diately after the semicolon in subparagraph (B); and
(2) by adding a new subparagraph (C) to read
as follows:
‘‘(C)(i) it was incurred—
‘‘(aa) not more than 2 years before the
grant agreement for such project was executed;
‘‘(bb) after September 30, 1993;
‘‘(cc) in accordance with an airport layout
plan approved by the Secretary and in accord-
ance with all applicable statutory and adminis-
trative requirements that would have been ap-
plicable to such work if the project had been
carried out after the grant agreement had been
executed; and
‘‘(dd) in the case of projects initiated on or
after 90 days following the enactment of this
provision, after receiving the Secretary’s ap-
proval of the project.
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‘‘(ii) allowable costs under subparagraph (C)(i)
may include—
‘‘(aa) interest payable on, and the retire-
ment of, the principal of bonds or other evi-
dence of indebtedness incurred to initiate the
project involved and before the grant agreement
for such project was executed; and
‘‘(bb) interest payable on, and the retire-
ment of, the principal of bonds or other evi-
dences of indebtedness the proceeds of which
were used to finance the development work for
which reimbursement is provided under this
subparagraph.
‘‘(iii) only the sums apportioned under sub-
sections 507(a)(1) and 507(a)(2) of this title may be
obligated for project costs allowable under paragraph
(C)(i).’’
SEC. 115. TERMINAL DEVELOPMENT.
Section 513(b) of the Airport and Airway Improve-
ment Act of 1982, as amended (49 U.S.C. App. 2212(b)),
is amended—
(1) by inserting after the phrase ‘‘may be used’’
in paragraph (2) the phrase ‘‘subject to the approval
of the Secretary’’;
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(2) by adding a new sentence at the end of
paragraph (2) to read as follows: ‘‘All or any portion
of the sums to be distributed at the discretion of the
Secretary under sections 507(c) and 507(d) for any
fiscal year may be distributed for use by commercial
service airports each of which annually has .05 per-
cent or less of the total enplanements in the United
States for project costs allowable under paragraph
(1) of this subsection.’’; and
(3) by striking paragraph (5) and renumbering
paragraph (6) as paragraph (5).
SEC. 116. LETTERS OF INTENT.
Section 513(d)(1) of the Airport and Airway Im-
provement Act of 1982, as amended (49 U.S.C. App.
2212(d)(1)), is amended by adding a new subparagraph
(H) to read as follows:
‘‘(H) LIMITATION
OF
STATUTORY
CON-
STRUCTION.—Nothing in this section shall be
construed to prohibit the obligation of amounts
pursuant to a letter of intent under this para-
graph in the same fiscal year as the letter of in-
tent is issued.’’
SEC. 117. STATE BLOCK GRANT PROGRAM.
(a) Section 534(a) of the Airport and Airway im-
provement Act of 1982, as amended (49 U.S.C. App.
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2227(a)), is amended by striking ‘‘September 30, 1996’’
and inserting in lieu thereof ‘‘September 30, 1997’’.
(b) Section 534(b) of the Airport and Airway Im-
provement Act of 1982, as amended, (49 U.S.C. App.
2227(b)) is amended by striking the remaining portion of
the first sentence after the phrase ‘‘under this title,’’ and
inserting in lieu thereof the following: ‘‘for such airports,
other than primary airports, that the Secretary may ap-
prove annually. Such funding may include funding for in-
tegrated airport system planning. For purposes of this sec-
tion, an integrated airport system plan must include at
least one primary airport enplaning 0.25 percent or more
of the total number of passengers enplaned annually at
all commercial service airports.’’.
SEC. 118. COMPATIBLE LAND USE.
The Airport and Airway Improvement Act of 1982,
as amended, (49 U.S.C. App. 2201 et seq.) is amended
by adding a new section 535 to read as follows:
‘‘SEC. 535. COMPATIBLE LAND USE.
‘‘(a) Subject to the conditions in subsection (c), the
Secretary is authorized to make grants to States and units
of local government for any land use compatibility plan-
ning or project as defined in this section for the purposes
of making the use of land areas around airports compat-
ible with aircraft operations.
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‘‘(b) DEFINITIONS.—
‘‘(1) ‘Compatible land use’ means land use that
is normally compatible with—
(A) the noise levels associated with an air-
port, as established under the Aviation Safety
and Noise Abatement Act of 1979;
(B) airport design standards as issued by
the Secretary; and
(C) regulations promulgated under the au-
thority of section 1101 of the Federal Aviation
Act of 1958, as amended.
‘‘(2) ‘Land use compatibility plan’ means the
product of a process to determine the extent, type,
nature, location, and timing of measures to improve
the compatibility of land use with the existing and
forecast level of aviation activity at an airport.
‘‘(3) ‘Land use compatibility project’ means a
project that is contained in a land use compatibility
plan and determined by the Secretary to enhance
land use compatibility.
‘‘(c) CONDITIONS.—
‘‘(1) The sponsor must be a public agency that
is not the owner or operator of the airport with
which the land use compatibility planning project is
associated.
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‘‘(2) The sponsor of the land use compatibility
plan must have authority to plan and adopt land use
control measures, including zoning, in the planning
area.
‘‘(3) A land use compatibility plan may not du-
plicate or be inconsistent with an airport noise com-
patibility program prepared by an airport operator
under the Aviation Safety and Noise Abatement Act
of 1979 or with other planning carried out by the
airport. The public agency which is the sponsor of
a land use compatibility plan shall consult with the
owner or operator of the airport with which the plan
is associated regarding any recommended land use
compatibility measures identified in the plan and
any aviation data on which such recommendations
are made.
‘‘(4) The Secretary shall make project grants
under this section contingent upon a verification by
the associated airport owner or operator that the
land use compatibility plan, including the use of any
noise exposure contours on which land use planning
or projects are based, has been coordinated with the
airport and is consistent with airport operation and
planning.
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‘‘(5) The Secretary may establish guidelines to
administer this section in accordance with the pur-
poses and conditions described herein.
‘‘(d) SPONSORSHIP.—As a condition precedent to ap-
proval of a proposal by a public agency to undertake prep-
aration of a land use compatibility plan or implementation
of a land use compatibility project under this section, the
Secretary shall receive such assurances, in writing, from
the sponsor of the plan or project as the Secretary may
determine to be necessary to achieve the purposes of this
section.’’.
SEC. 119. AIRPORT SAFETY DATA COLLECTION.
The Airport and Airway Improvement Act of 1982,
as amended (49 U.S.C. App. 2201 et seq.), is amended
by adding a new section 536 to read as follows:
‘‘SEC. 536. AIRPORT SAFETY DATA COLLECTION.
‘‘Notwithstanding any other provision of law, the Ad-
ministrator of the Federal Aviation Administration may
contract with the Center for Aviation Research and Edu-
cation of the National Association of State Aviation Offi-
cials for the collection of airport safety data, to be funded
from amounts made available under section 508(d)(4) for
integrated airport system planning.’’.
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SEC. 120. INTERMODAL SYSTEM PLANNING.
(a) Section 503(a) of the Airport and Airway Im-
provement Act of 1982, as amended (49 U.S.C. App.
2202(a)) is amended by inserting in the second sentence
of paragraph (7) the phrase ‘‘the role which airports play
in the transportation system in a specific area,’’ after the
phrase ‘‘identification of system needs,’’.
(b) Section 508(d)(4) of the Airport and Airway Im-
provement Act of 1982, as amended (49 U.S.C. App.
2207(d)(4)) is amended—
(1) by striking the phrase ‘‘1⁄2 of’’ in paragraph
(4);
(2) by inserting in paragraph (4) the letter
‘‘(A)’’ before the phrase ‘‘Not less than’’ and insert-
ing ‘‘; and’’ in lieu of the period; and
(3) by inserting in paragraph (4) a new sub-
paragraph (B) to read as follows:
‘‘(B) Prior to the Secretary’s approval of a
grant to a planning agency for integrated airport
system planning, the planning agency shall, insofar
as its powers permit, certify that the sponsor of any
airport enplaning 0.25 percent or more of the total
number of passengers enplaned annually at all com-
mercial service airports is considered to be an opera-
tor of a major mode of transportation pursuant to
the provisions of section 1024(a) of the Intermodal
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Surface Transportation Efficiency Act of 1990 (23
U.S.C. App. 134(b)(2)), and that any such sponsor
is a member, or will be appointed a member as soon
as practicable, of such planning agency.’’
SEC. 121. INNOVATIVE FINANCING.
Section 505 of the Airport and Airway Improvement
Act of 1982, as amended (49 U.S.C. 2204), is amended
by adding a new subsection (e) to read as follows:
‘‘(e) INNOVATIVE FINANCING OF AIRPORT DEVELOP-
MENT PROJECTS.—
‘‘(1) IN GENERAL.—In order to fulfill the objec-
tives of this section in a manner that advances the
overall infrastructure needs of the aviation sector of
the nation’s economy as effectively and flexibly as
possible, the Secretary is authorized, on such terms
and conditions as the Secretary deems appropriate,
to enter into agreements or other arrangements for
airport development that produce a greater amount
of investment in airport development per dollar of
Federal expenditure than generally prevails in the
Federal program pursuant to subsection (a) of this
section. Among the innovative financing mechanisms
available to the Secretary pursuant to this sub-
section are agreements entered into with non-Fed-
eral entities, including airport sponsors, for the loan
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of Federal funds, the guarantee of loan repayment,
or the purchase of insurance or other forms of en-
hancement for borrower debt. In selecting projects
under this subsection, the Secretary shall give prior-
ity consideration to projects that demonstrate inno-
vative use of Federal funds and leverage a signifi-
cant amount of non-Federal funds and to projects
with the greatest transportation benefits when com-
pared to other available proposals for airport devel-
opment. When approving projects under this sub-
section, the Secretary may agree in the early phases
of a project to a Federal share, up to 100 percent,
provided that the Federal share of the total cost of
the project does not exceed that otherwise permitted.
Any combination of these financing mechanisms may
be combined with grant assistance under this title
for any project eligible for grant assistance under
this title.
‘‘(2) TRUST FUND COMMITMENTS.—In order to
participate in innovative financing of airport devel-
opment pursuant to this subsection, there are au-
thorized to be appropriated from the Trust Fund
such sums as may be necessary during the fiscal
years 1995 through 1997 for the cost of loans, loan
guarantees and other participation, which sums shall
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be in addition to amounts made available under sub-
section (a) of this section. New Federal loans and
guarantees may be incurred only to the extent that
appropriation of budget authority to cover their
costs, as defined in Section 502 of the Congressional
Budget Act of 1974, is made in advance.’’.
TITLE II—FEDERAL AVIATION ACT OF 1958
AMENDMENTS
SEC. 201. COOPERATIVE AGREEMENTS FOR RESEARCH, EN-
GINEERING, AND DEVELOPMENT.
Section 312 of the Federal Aviation Act of 1958, as
amended (49 U.S.C. App. 1353), is amended—
(1) by adding at the end a new subsection (j)
to read as follows:
‘‘(j) COOPERATIVE
AGREEMENTS.—The Adminis-
trator may enter into cooperative agreements on a cost-
shared basis with Federal and non-Federal entities that
the Administrator may select in order to conduct, encour-
age, and promote aviation research, engineering, and de-
velopment, including the development of prototypes and
demonstration models.’’
(2) CONFORMING AMENDMENT.—The table of
contents of the Federal Aviation Act of 1958 is
amended by adding at the end of the item relating
to section 312 the following:
‘‘(j) Cooperative agreements.’’.
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SEC. 202. ASSISTANCE TO FOREIGN AVIATION AUTHORI-
TIES.
Section 313 of the Federal Aviation Act of 1958, as
amended (49 U.S.C. App. 1354), is amended—
(1) by adding at the end a new subsection (g)
to read as follows:
‘‘(g) ASSISTANCE TO FOREIGN AVIATION AUTHORI-
TIES.—(1) The Administrator may provide safety-related
training and operational services for foreign aviation au-
thorities with or without reimbursement, if the Adminis-
trator determines that providing such services promotes
aviation safety or United States aviation interests. To the
extent practicable, air travel reimbursed under this sub-
section shall be conducted on United States air carriers.
‘‘(2) Funds received by the Administrator pursuant
to this section shall be credited to the appropriation from
which the expenses were incurred in providing such
services.’’.
(2) CONFORMING AMENDMENT.—The table of
contents of the Federal Aviation Act of 1958 is
amended by adding at the end of the item relating
to section 313 the following:
‘‘(g) Assistance to foreign aviation authorities.’’
SEC. 203. FOREIGN FEE COLLECTION.
Section 313(f) of the Federal Aviation Act of 1958,
as amended (49 U.S.C. App. 1354(f)), is amended—
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(1) by redesignating paragraphs (3) and (4) as
paragraphs (4) and (5), respectively; and
(2) by inserting immediately after paragraph
(2) a new paragraph (3) to read as follows:
‘‘(3) RECOVERY OF COST OF FOREIGN AVIA-
TION SERVICES.—
‘‘(A) ESTABLISHMENT
OF
FEES.—Not-
withstanding the limitation of paragraph (4),
the Administrator may establish and collect fees
for providing or carrying out the following avia-
tion services outside the United States: any
test, authorization, certificate, permit, rating,
evaluation, approval, inspection, or review. Such
fees shall be established as necessary to recover
the additional cost of providing or carrying out
such services outside the United States, as com-
pared to the cost of providing or carrying out
such services within the United States, except
that in the case of foreign repair stations, and
for such other aviation services as the Adminis-
trator may determine appropriate, recovery
shall be for the full cost of providing such
services.
‘‘(B) CREDITING
OF
PREESTABLISHED
FEES.—Fees described in subparagraph (A)
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that were not established before the date of en-
actment of this Act may be credited in accord-
ance with paragraph (5).’’.
SEC. 204. PASSENGER FACILITY CHARGES.
Section 1113(e)(2) of the Federal Aviation Act of
1958, as amended, (49 U.S.C. App. 1513(e)(2)) is amend-
ed—
(1) by striking the period at the end of sub-
paragraph (B)(iii) and inserting ‘‘; and’’; and
(2) by adding a new subparagraph (C) to read
as follows:
‘‘(C) that the application includes adequate
justification for each of the specific projects.’’.
TITLE III—AVIATION SAFETY AND NOISE
ABATEMENT ACT OF 1979 AMENDMENTS
SEC. 301. UNIFORM GOVERNMENT SHARE.
Section 104(c)(1) of the Aviation Safety and Noise
Abatement Act of 1979, as amended (49 U.S.C. App.
2104(c)(1)), is amended—
(1) by deleting the fourth sentence and insert-
ing in lieu thereof the following: ‘‘The United States
share of the allowable cost of a project for which a
grant is made to an airport or to a public agency
under this subsection shall be the United States
share of the allowable cost of an eligible project as
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set forth in section 510 of the Airport and Airway
Improvement Act of 1982, as amended.’’; and
(2) by striking the phrase ‘‘(except section 510
of that Act relating to United States share of project
costs)’’ in the fifth sentence.
SEC. 302. SOUNDPROOFING RESIDENTIAL BUILDINGS.
(a) Section 104(c)(2) of the Aviation Safety and
Noise Abatement Act of 1979, as amended (49 U.S.C.
App. 2104(c)(2)), is amended—
(1) by inserting ‘‘(A)’’ before ‘‘to operators of
airports’’; and
(2) by striking the period at the end and insert-
ing ‘‘; and (B) for projects to soundproof residential
buildings—
‘‘(i) if the operator of the airport involved
received approval for a grant for a project to
soundproof residential buildings pursuant to
section 301(d)(4)(B) of the Airport and Airway
Safety and Capacity Expansion Act of 1987;
‘‘(ii) if the operator of the airport involved
submits updated noise exposure contours, as re-
quired by the Secretary; and
‘‘(iii) if the Secretary determines that the
proposed projects are compatible with the pur-
poses of the Act.’’.
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(b) Section 104(c) of the Aviation Safety and Noise
Abatement Act of 1979, as amended (49 U.S.C. App.
2104(c)), is amended—
(1) by adding a new paragraph (4) to read as
follows:
‘‘(4) SOUNDPROOFING
AND
ACQUISITION
OF
CERTAIN RESIDENTIAL PROPERTIES.—The Secretary
is authorized under this section to make grants to
operators of airports and to units of local govern-
ment referred to in paragraph (1) for projects to
soundproof residential buildings located on residen-
tial properties, and for projects to acquire residential
properties, at which noise levels are not compatible
with normal operations of an airport—
‘‘(A) if the operator of the airport involved
amended an existing local aircraft noise regula-
tion during calendar year 1993 to increase the
maximum permitted noise levels for scheduled
air carrier aircraft as a direct result of imple-
mentation of revised aircraft noise departure
procedures mandated for aircraft safety pur-
poses by the Administrator of the Federal Avia-
tion Administration for standardized application
at airports served by scheduled air carriers;
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‘‘(B) if the operator of the airport involved
submits updated noise exposure contours, as re-
quired by the Secretary; and
‘‘(C) if the Secretary determines that the
proposed projects are compatible with the pur-
poses of this Act.’’
SEC. 303. REPEAL OF ANNUAL REPORT REQUIREMENT.
Section 401 of the Aviation Safety and Noise Abate-
ment Act of 1979, as amended (Public Law 96–193; 94
Stat. 57), is repealed.
TITLE IV—GENERAL PROVISIONS
SEC. 401. RELOCATION OF AIRWAY FACILITIES.
Compensation received by the United States for
transfer of the San Jacinto Disposal Area by the United
States to the city of Galveston, Texas, shall include com-
pensation to be provided to the Federal Aviation Adminis-
tration for all costs of establishing airway facilities to re-
place existing airway facilities on the San Jacinto Disposal
Area. Such compensation shall include but is not limited
to the replacement of the land, clear zones, buildings and
equipment, and demolition and disposal of the existing fa-
cilities on the San Jacinto Disposal Area.
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SEC. 402. WAIVER AUTHORITY FOR FOREIGN AIR CAR-
RIERS.
Section 9308(b)(1) of the Aviation Noise and Capac-
ity Act of 1990 is amended by inserting the phrase ‘‘or
a foreign air carrier’’ immediately after the phrase ‘‘air
carrier’’ wherever it appears in section 9308(b)(1).
SEC. 403. REPEAL.
Section 31 of the Airport and Airway Development
Act of 1970, as amended (49 U.S.C. App. 1731) is hereby
repealed.
TITLE V—AMENDMENTS TO THE
INTERNAL REVENUE CODE OF 1986
SEC. 501. EXTENSION OF AVIATION-RELATED TAXES AND
TRUST FUND SPENDING AUTHORITY.
(a) Sections 4091(b)(3)(A), 4261(g) and 4271(d) of
the Internal Revenue Code of 1986 and sections 9502(b)
(1), (2), and (3) of the Trust Fund Code of 1981 (26
U.S.C. 4091(b)(3)(A), 4261(g), 4271(d), and 9502(b) (1),
(2), and (3)) are amended by striking ‘‘January 1, 1996’’
each place it appears and inserting in lieu thereof ‘‘Janu-
ary 1, 1998’’.
(b) Section 4041(c)(5) of the Internal Revenue Code
of 1986 (26 U.S.C. 4041(c)(5)) is amended by striking
‘‘December 31, 1995’’ and inserting in lieu thereof ‘‘De-
cember 31, 1997’’.
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(c) Section 9502(b) of the Trust Fund Code of 1981
(26 U.S.C. 9502(b)) is amended—
(1) by inserting the phrase ‘‘and before’’ after
‘‘August 31, 1982,’’ in paragraph (2) and by insert-
ing the word ‘‘and’’ after the semicolon at the end
of paragraph (2);
(2) by striking ‘‘; and’’ at the end of paragraph
(3) and substituting a period in lieu thereof; and
(3) by deleting paragraph (4).
(d) Section 9502(d)(1) of the Trust Fund Code of
1981 (26 U.S.C. 9502(d)(1)) is amended by striking the
phrase ‘‘October 1, 1995’’ and inserting in lieu thereof
‘‘October 1, 1999’’.
(e) Section 9502(d)(1)(A) of the Trust Fund Code
of 1981 (26 U.S.C. 9502(d)(1)(A)) is amended by striking
the phrase ‘‘(as such Acts were in effect on the date of
enactment of the Airport and Airway Safety Capacity,
Noise Improvement, and Intermodal Transportation Act
of 1992);’’ and inserting in lieu thereof the phrase ‘‘or
the Airport and Airway Safety Capacity, Noise Improve-
ment, and Intermodal Transportation Act of 1992 or the
Aviation Investment Act of 1994 (as such Acts were in
effect on the date of the enactment of the Aviation Invest-
ment Act of 1994);’’.
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(f) Section 9502(f)(3) of the Trust Fund Code of
1981 (26 U.S.C. 9502(f)(3)) is amended by striking ‘‘De-
cember 31, 1995’’ and inserting in lieu thereof ‘‘December
31, 1999’’.
Æ
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