Teacher:In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Teacher: Now, understand the problem? Solve this instance: SECTION 1. SHORT TITLE.

This Act may be cited as the ''Regional Jet Air Service Improvement
Act''.

SEC. 2. AMENDMENT OF TITLE 49, UNITED STATES CODE.

Subtitle VII of title 49, United States Code, is amended by adding
at the end thereof the following:

''Part E.--Regional Air Service Incentive Program

''Sec.
''49201. Purpose.
''49202. Definitions.
''49203. Loan guarantees.
''49204. Conditions and limitations.
''49205. Fees.
''49206. Use of Federal facilities; assistance.
''49207. Receipts; payments.
''49208. Termination.
''Sec. 49201. Purpose
''The purpose of this chapter is to improve service by jet aircraft
to underserved markets by providing assistance, in the form of loan
guarantees, to air carriers, commuter air carriers, and intrastate air
carriers that purchase regional jet aircraft for use in serving those
markets.
Sec. 49202. Definitions
''As used in this part:
''(1) Aircraft purchase loan.--The term 'aircraft purchase
loan' means any loan, or commitment in connection with a loan,
made for the purchase of commercial transport aircraft,
including spare parts normally associated with the aircraft.
''(2) Air carrier.--The term 'air carrier' means any air
carrier (as that term is defined in section 40102(2)) holding a
certificate of public convenience and necessity issued by the
Secretary under section 41102.
''(3) Commuter air carrier.--The term 'commuter air
carrier' means air carrier operating pursuant to section
40104(a)(1)(A) who operates at least 5 round trip flights per
week between 1 pair of points in accordance with published
flight schedules.
''(4) Intrastate air carrier.--The term 'intrastate air
carrier' means any citizen of the United States who undertakes,
whether directly or indirectly or by a lease or any other
arrangement, to engage primarily in intrastate air
transportation (as such term is defined in section 40102(26)).
''(5) Nonhub airport.--The term 'nonhub airport' means an
airport that each year has less than .05 percent of the total
annual boardings in the United States.
''(6) Regional jet aircraft.--The term 'regional jet
aircraft' means a civil aircraft (as defined in section
40102(16))--
''(A) powered by jet propulsion;
''(B) with seating for not less than 30 nor more
than 70 passengers (except that the Secretary may, for
good cause shown, permit a variance of up to 5
passengers).
''(7) Small hub airport.--The term 'small hub airport'
means an airport that each year has at least .05 percent, but
less than .25 percent, of the total annual boardings in the
United States.
''(8) Underserved market.--The term 'underserved market'
means a passenger air transportation market (as defined by the
Secretary that--
''(A) is served (as determined by the Secretary) by
a nonhub airport or a small hub airport; and
''(B) is not within a 50-mile radius of a primary
airport (as defined in section 47102(11).
''Sec. 49203. Loan guarantees
''(a) In General.--The Secretary may guarantee any lender against
loss of principal or interest on any aircraft purchase loan made by
that lender to--
''(1) any air carrier with respect to which the certificate
issued that air carrier under chapter 41 of title 49, United
States Code, authorizes--
''(A) the air carrier to provide local or feeder
air service;
''(B) scheduled passenger operations the major
portion of which is conducted within the State of
Hawaii; or
''(C) operations (the major portion of which is
conducted either within Alaska or between Alaska and
the 48 contiguous States), within the State of Alaska
(including service between Alaska and the 48 contiguous
States, and between Alaska and adjacent Canadian
territory);
''(2) any commuter air carrier; or
''(3) any intrastate air carrier.
''(b) Form, Terms, and Conditions.--A guarantee shall be made under
subsection (a)--
''(1) in such form, on such terms and conditions; and
''(2) pursuant to such regulations, as the Secretary
considers to be necessary and consistent with this part.
''Sec. 49204. Conditions and limitations
''(a) Limitations on Funds.--
''(1) In general.--Subject to subsection (d), no loan
guarantee shall be made under this part--
''(1) extending to more than the unpaid interest and 90
percent of the unpaid principal of any loan;
''(2) on any loan or combination of loans for more than 90
percent of the purchase price of the aircraft, including spare
parts, to be purchased with the loan;
''(3) on any loan with respect to which terms permit full
repayment more than 15 years after the date the loan is made;
''(4) in any case in which the total face amount of the
loan, and any other loans to the same air carrier, commuter air
carrier, or intrastate air carrier or corporate predecessor of
that air carrier, commuter air carrier, or intrastate air
carrier that are guaranteed and outstanding under the terms of
this part exceed $100,000,000.
''(b) Conditions for Making Loans.--Subject to subsection (c), the
Secretary may only make a loan guarantee under this part if the
Secretary finds that--
''(1) the aircraft to be purchased with the loan is a
regional jet aircraft needed to improve the service and
efficiency of operation of the air carrier, commuter air
carrier, or intrastate air carrier;
''(2) the air carrier, commuter air carrier, or intrastate
air carrier agrees to use the aircraft to provide service to
underserved markets; and
''(3) the prospective earning power--
''(A) of the applicant air carrier, together with
the character and value of the security pledged,
furnish--
''(i) reasonable assurances of the ability
of the applicant to repay the loan within the
term for the loan; and
''(ii) reasonable protection to the United
States; and
''(B) of the applicant commuter air carrier or
intrastate air carrier, together with the character and
value of the security pledged, furnish--
''(i) reasonable assurances of the
applicant's ability and intention to repay the
loan within the term of the loan--
''(I) to continue its operations as
a commuter air carrier or intrastate
air carrier; and
''(II) to the extent that the
Secretary determines to be necessary,
to continue its operations as a
commuter air carrier or intrastate air
carrier between the same route or
routes being operated by the applicant
at the time of the loan guarantee; and
''(ii) reasonable protection to the United
States.
''(c) Requirement.--Subject to subsection (d), no loan guarantee
may be made under this part on any loan or combination of loans for the
purchase of any new turbo-jet-powered aircraft that does not comply
with the noise standards prescribed for new subsonic aircraft in
regulations issued by the Secretary, acting through the Administrator
of the Federal Aviation Administration, contained in 14 CFR part 36, as
those regulations were in effect on January 1, 1977.
''(d) Other Limitations.--
''(1) In general.--No loan guarantee shall be made by the
Secretary under this part on any loan for the purchase of a
regional jet aircraft unless the air carrier, commuter air
carrier, or intrastate air carrier agrees that it will provide
service to the underserved market for which the aircraft is
purchased for a period of not less than 12 consecutive months
after the aircraft is placed in service and the air carrier,
commuter air carrier, or intrastate air carrier is authorized
to provide service to that market.
''Sec. 49205. Fees
''The Secretary shall prescribe and collect from a lending
institution a reasonable guaranty fee in connection with each loan
guaranteed under this part.
''Sec. 49206. Use of Federal facilities; assistance
''(a) Use of Federal Facilities.--To permit the Secretary to make
use of such expert advice and services as the Secretary may require in
carrying out this part, the Secretary may use available services and
facilities of other agencies and instrumentalities of the Federal
Government--
''(1) with the consent of the appropriate Federal
officials; and
''(2) on a reimbursable basis.
''(b) Assistance.--The head of each appropriate department or
agency of the Federal Government shall exercise the duties and
functions of that head in such manner as to assist in carrying out the
policy specified in section 49201.
''(c) Oversight.--The Secretary shall make available to the
Comptroller General of the United States such information with respect
to the loan guarantee program conducted under this part as the
Comptroller General may require to carry out the duties of the
Comptroller General under chapter 7 of title 31, United States Code.
''Sec. 49207. Receipts; payments
''(a) Miscellaneous.--Amounts received by the Secretary pursuant to
this part shall be credited to miscellaneous receipts of the Treasury.
''(b) Payments.--Payments to lenders required as a consequence of
any loan guarantee made under this part may be made from funds
appropriated pursuant to the authorization under section 3 of the
Regional Jet Air Service Improvement Act.
''(c) Administrative Expenses.--In carrying out this part, the
Secretary shall use funds made available by appropriations to the
Department of Transportation for the purpose of administration to cover
administrative expenses of the loan guarantee program under this part.
''Sec. 49208. Termination
''The authority of the Secretary under section 49203 shall
terminate on the date that is 5 years after the date of enactment of
the Regional Jet Air Service Improvement Act.''.

SEC. 3. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated such sums as may be
necessary to carry out part E of subtile VII of title 49, United States
Code.
Student:
Regional Jet Air Service Improvement Act - Amends Federal aviation law to authorize the Secretary of Transportation to guarantee loans to certain air carriers, including commuter and intrastate air carriers, for the purchase of regional jet aircraft that provide service to underserved markets. Sets forth certain requirements with respect to such loans.
Authorizes the Secretary to use the available services and facilities of other Federal agencies to carry out this Act.
Authorizes appropriations.