H. R. 2115—53
SEC. 324. NOISE EXPOSURE MAPS.
Section 47503 is amended—
(1) in subsection (a) by striking ‘‘1985,’’ and inserting ‘‘a
forecast period that is at least 5 years in the future’’; and
(2) by striking subsection (b) and inserting the following:
‘‘(b) REVISED MAPS.—If, in an area surrounding an airport,
a change in the operation of the airport would establish a substan-
tial new noncompatible use, or would significantly reduce noise
over existing noncompatible uses, that is not reflected in either
the existing conditions map or forecast map currently on file with
the Federal Aviation Administration, the airport operator shall
submit a revised noise exposure map to the Secretary showing
the new noncompatible use or noise reduction.’’.
SEC. 325. IMPLEMENTATION OF CHAPTER 4 NOISE STANDARDS.
Not later than April 1, 2005, the Secretary of Transportation
shall issue final regulations to implement Chapter 4 noise stand-
ards, consistent with the recommendations adopted by the Inter-
national Civil Aviation Organization.
SEC. 326. REDUCTION OF NOISE AND EMISSIONS FROM CIVILIAN AIR-
CRAFT.
(a) ESTABLISHMENT OF RESEARCH PROGRAM.—From amounts
made available under section 48102(a) of title 49, United States
Code, the Secretary of Transportation shall establish a research
program related to reducing community exposure to civilian aircraft
noise or emissions through grants or other measures authorized
under section 106(l)(6) of such title, including reimbursable agree-
ments with other Federal agencies. The program shall include
participation by educational and research institutions that have
existing facilities for developing and testing noise reduction engine
technology.
(b) DESIGNATION OF INSTITUTE AS A CENTER OF EXCELLENCE.—
The Administrator of the Federal Aviation Administration shall
designate an institution described in subsection (a) as a Center
of Excellence for Noise and Emission Research.
SEC. 327. SPECIAL RULE FOR AIRPORT IN ILLINOIS.
(a) IN GENERAL.—Nothing in this title shall be construed to
preclude the application of any provision of this Act to the State
of Illinois or any other sponsor of a new airport proposed to be
constructed in the State of Illinois.
(b) AUTHORITY OF THE GOVERNOR.—Nothing in this title shall
be construed to preempt the authority of the Governor of the State
of Illinois as of August 1, 2001, to approve or disapprove airport
development projects.
TITLE IV—AIRLINE SERVICE
IMPROVEMENTS
Subtitle A—Small Community Air Service
SEC. 401. EXEMPTION FROM HOLD-IN REQUIREMENTS.
Section 41734 is amended by adding at the end the following:
‘‘(i) EXEMPTION FROM HOLD-IN REQUIREMENTS.—If, after the
date of enactment of this subsection, an air carrier commences
H. R. 2115—54
air transportation to an eligible place that is not receiving scheduled
passenger air service as a result of the failure of the eligible
place to meet requirements contained in an appropriations Act,
the air carrier shall not be subject to the requirements of sub-
sections (b) and (c) with respect to such air transportation.’’.
SEC. 
402. 
ADJUSTMENTS 
TO 
ACCOUNT 
FOR 
SIGNIFICANTLY
INCREASED COSTS.
(a) IN GENERAL.—Section 41737 is amended by adding at the
end the following:
‘‘(e) ADJUSTMENTS TO ACCOUNT FOR SIGNIFICANTLY INCREASED
COSTS.—
‘‘(1) IN
GENERAL.—If the Secretary determines that air
carriers are experiencing significantly increased costs in pro-
viding air service or air transportation for which compensation
is being paid under this subchapter, the Secretary may increase
the rates of compensation payable under this subchapter with-
out regard to any agreement or requirement relating to the
renegotiation of contracts or any notice requirement under sec-
tion 41734.
‘‘(2) READJUSTMENT IF COSTS SUBSEQUENTLY DECLINE.—If
an adjustment is made under paragraph (1), and total unit
costs subsequently decrease to at least the total unit cost
reflected in the compensation rate, then the Secretary may
reverse the adjustment previously made under paragraph (1)
without regard to any agreement or requirement relating to
the renegotiation of contracts or any notice requirement under
section 41734.
‘‘(3) SIGNIFICANTLY
INCREASED
COSTS
DEFINED.—In this
subsection, the term ‘significantly increased costs’ means a
total unit cost increase (but not increases in individual unit
costs) of 10 percent or more in relation to the total unit cost
reflected in the compensation rate, based on the carrier’s
internal audit of its financial statements if such cost increase
is incurred for a period of at least 2 consecutive months.’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall take effect 30 days after the date of enactment of this Act.
SEC. 403. JOINT PROPOSALS.
Section 41740 is amended by inserting ‘‘, including joint fares,’’
after ‘‘joint proposals’’.
SEC. 404. ESSENTIAL AIR SERVICE AUTHORIZATION.
Section 41742 is amended—
(1) in subsection (a)(2)—
(A) 
by 
striking 
‘‘$15,000,000’’ 
and 
inserting
‘‘$77,000,000’’; and
(B) by inserting before the period at the end ‘‘of which
not more than $12,000,000 per fiscal year may be used
for the marketing incentive program for communities and
for State marketing assistance’’;
(2) by adding at the end of subsection (a) the following:
‘‘(3) AUTHORIZATION FOR ADDITIONAL EMPLOYEES.—In addi-
tion to amounts authorized under paragraphs (1) and (2), there
are authorized to be appropriated such sums as may be nec-
essary for the Secretary of Transportation to hire and employ
4 additional employees for the office responsible for carrying
out the essential air service program.’’; and
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(3) by striking subsection (c).
SEC. 405. COMMUNITY AND REGIONAL CHOICE PROGRAMS.
Subchapter II of chapter 417 is amended by adding at the
end the following:
‘‘§ 41745. Community and regional choice programs
‘‘(a) ALTERNATE ESSENTIAL AIR SERVICE PILOT PROGRAM.—
‘‘(1) ESTABLISHMENT.—The Secretary of Transportation
shall establish an alternate essential air service pilot program
in accordance with the requirements of this section.
‘‘(2) ASSISTANCE TO ELIGIBLE PLACES.—In carrying out the
program, the Secretary, instead of paying compensation to an
air carrier to provide essential air service to an eligible place,
may provide assistance directly to a unit of local government
having jurisdiction over the eligible place or a State within
the boundaries of which the eligible place is located.
‘‘(3) USE OF ASSISTANCE.—A unit of local government or
State receiving assistance for an eligible place under the pro-
gram may use the assistance for any of the following purposes:
‘‘(A) To provide assistance to air carriers that will
use smaller equipment to provide the service and to con-
sider increasing the frequency of service using such smaller
equipment if the Secretary determines that passenger
safety would not be compromised by the use of such smaller
equipment and if the State or unit of local government
waives the minimum service requirements under section
41732(b).
‘‘(B) To provide assistance to an air carrier to provide
on-demand air taxi service to and from the eligible place.
‘‘(C) To provide assistance to a person to provide sched-
uled or on-demand surface transportation to and from the
eligible place and an airport in another place.
‘‘(D) In combination with other units of local govern-
ment in the same region, to provide transportation services
to and from all the eligible places in that region at an
airport or other transportation center that can serve all
the eligible places in that region.
‘‘(E) To purchase aircraft to provide transportation to
and from the eligible place or to purchase a fractional
share in an aircraft to provide such transportation after
the effective date of a rule the Secretary issues relating
to fractional ownership.
‘‘(F) To pay for other transportation or related services
that the Secretary may permit.
‘‘(b) COMMUNITY FLEXIBILITY PILOT PROGRAM.—
‘‘(1) IN
GENERAL.—The Secretary shall establish a pilot
program for not more than 10 eligible places or consortia of
units of local government.
‘‘(2) ELECTION.—Under the program, the sponsor of an air-
port serving an eligible place may elect to forego any essential
air service for which compensation is being provided under
this subchapter for a 10-year period in exchange for a grant
from the Secretary equal in value to twice the compensation
paid to provide such service in the most recent 12-month period.
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‘‘(3) GRANT.—Notwithstanding any other provision of law,
the Secretary shall make a grant to each airport sponsor partici-
pating in the program for use on any project that—
‘‘(A) is eligible for assistance under chapter 471 and
complies with the requirements of that chapter;
‘‘(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.
‘‘(c) FRACTIONALLY OWNED AIRCRAFT.—After the effective date
of the rule referred to in subsection (a)(3)(E), only those operating
rules that relate to an aircraft that is fractionally owned apply
when an aircraft described in subsection (a)(3)(E) is used to provide
transportation described in subsection (a)(3)(E).
‘‘(d) APPLICATIONS.—
‘‘(1) IN GENERAL.—An entity seeking to participate in a
program under this section shall submit to the Secretary an
application in such form and containing such information as
the Secretary may require.
‘‘(2) REQUIRED INFORMATION.—At a minimum, the applica-
tion shall include—
‘‘(A) a statement of the amount of compensation or
assistance required; and
‘‘(B) a description of how the compensation or assist-
ance will be used.
‘‘(e) PARTICIPATION REQUIREMENTS.—An eligible place for which
compensation or assistance is provided under this section in a
fiscal year shall not be eligible in that fiscal year for the essential
air service that it would otherwise be entitled to under this sub-
chapter.
‘‘(f) SUBSEQUENT PARTICIPATION.—A unit of local government
participating in the program under this subsection (a) in a fiscal
year shall not be prohibited from participating in the basic essential
air service program under this subchapter in a subsequent fiscal
year if such unit is otherwise eligible to participate in such program.
‘‘(g) FUNDING.—Amounts appropriated or otherwise made avail-
able to carry out the essential air service program under this
subchapter shall be available to carry out this section.’’.
SEC. 406. CODE-SHARING PILOT PROGRAM.
(a) IN GENERAL.—The Secretary of Transportation shall estab-
lish a pilot program under which the Secretary may require air
carriers providing service with compensation under subchapter II
of chapter 417 of title 49, United States Code, and major air
carriers (as defined in section 41716(a)(2) of such title) serving
large hub airports (as defined in section 40102 of such title) to
participate in multiple code-share arrangements consistent with
normal industry practice whenever and wherever the Secretary
determines that such multiple code-sharing arrangements would
improve air transportation services.
(b) LIMITATION.—The Secretary may not require air carriers
to participate in the pilot program under this section for more
than 10 communities receiving service under subchapter II of
chapter 417 of title 49, United States Code.
SEC. 407. TRACKING SERVICE.
Subchapter II of chapter 417 is further amended by adding
at the end the following: