PASSENGER FACILITY CHARGES.

SEC. 9110. PASSENGER FACILITY CHARGES. Section 1113 of the Federal Aviation Act of 1958 (49 U.S.C. App. 1513) is amended— (1) in subsection (a) by inserting “except as provided in subsection (e) and” before “except that”; and (2) by adding at the end the following new subsection: “(e) Authority for Imposition of Passenger Facility Charges.— “(1) In general.—Subject to the provisions of this subsection, the Secretary may grant a public agency which controls a commercial service airport authority to impose a fee of $1.00, $2.00, or $3,00 for each paying passenger of an air carrier enplaned at such airport to finance eligible airport-related projects to be carried out in connection with such airport or any other airport which such agency controls. For purposes of this subsection, financing an eligible airport-related project includes making payments for debt service on bonds and other indebtedness incurred to carry out such project. “(2) Use of revenues and relationship between fees and revenues.—The Secretary may grant a public agency which controls a commercial service airport authority to impose a fee under this subsection to finance specific projects only if the Secretary finds, on the basis of an application submitted for such authority— “(A) that the amount and duration of the proposed fee will result in revenues (including interest and other returns on such revenues) which do not exceed amounts necessary to finance the specific projects; and “(B) that each of the specific projects is an eligible air-port-related project which will— “(i) preserve or enhance capacity, safety, or security of the national air transportation system, 104 STAT. 1388–358 “(ii) reduce noise resulting from an airport which is part of such system, or “(iii) furnish opportunities for enhanced competition between or among air carriers. “(3) Limitation regarding passengers of air carriers receiving essential air service compensation.—If a passenger of an air carrier is being provided air service to an eligible point under section 419 for which compensation is being paid under such section, a public agency which controls any other airport may not impose a fee pursuant to this subsection for enplanement of such passenger with respect to such air service, “(4) Limitation regarding obligations.—No fee may be imposed pursuant to this subsection for a project which is not approved by the Secretary under this subsection on or before September 30, 1992— “(A) if, during fiscal years 1991 and 1992, the amount available for obligation, in the aggregate, under section 505 of Airport and Airway Improvement Act of 1982 is less than $3,700,000,000; or “(B) (i) if, during fiscal year 1991, the amount available for obligation, in the aggregate, under section 419 is less than $26^00,000; or “(ii) if, during fiscal year 1992, the amount available for obligation, in the aggregate, under section 419 is less than $38,600,000. “(5) Linkage.—The Secretary may not grant a public agency authority to impose a fee pursuant to this subsection unless the Secretary has— “(A) issued a final rule establishing a program for reviewing airport noise and access restrictions on operations of Stage 2 and Stage 3 aircraft pursuant to section 9304(a) of the Airport Noise and Capacity Act of 1990; and “(B) issued a notice of proposed rulemaking to consider more efficient allocation of existing capacity at high density airports under section 9126 of the Aviation Safety and Capacity Expansion Act of 1990. “(6) Two enplanements per trip limitation.—Enplaned passengers on whom a fee may be imposed by a public agency pursuant to this subsection include passengers of air carriers originating or connecting at the commercial service airport which the agency controls. A fee may not be collected pursuant to this subsection from a passenger with respect to any enplanement of such passenger, on a one-way trip and on a trip in each direction of a round trip, after the second enplanement for which a fee has been collected pursuant to this subsection from such passenger. “(7) Air carrier rates, fees, and charges.— “(A) Treatment of fee revenues.—Revenues derived from fees collected pursuant to this subsection shall not be treated as airport revenues for the purpose of establishing a rate, fee, or charge pursuant to a contract between a public agency which controls a commercial service airport and an air carrier. “(B) Capital costs.—Except as provided by subparagraph (C), a public agency which controls a commercial service airport shall not include in its rate base by means of 104 STAT. 1388–359depreciation, amortization, or any other method that portion of the capital costs of a project paid for using revenues derived from fees collected pursuant to this subsection for the purpose of establishing a rate, fee, or charge pursuant to a contract between such agency and an air carrier. “(C) Facilities financed with fee revenues.—With respect to a project for terminal development, gates and related areas, or a facility which is occupied or utilized by 1 or more air carriers on an exclusive or preferential basis, the rates, fees, and charges payable by air carriers which use such facilities shall be no less than the rates, fees, and charges paid by carriers using similar facilities at the airport which were not financed using revenues derived from collection of a fee imposed pursuant to this subsection. “(8) Exclusivity of authority.—No State or political subdivision or agency thereof which is not a public agency controlling a commercial service airport shall prohibit, limit, or regulate the imposition of fees by the public agency pursuant to this subsection, collection of such fees, or use of revenues derived there-from. No contract between an air carrier and a public agency which controls a commercial service airport entered into before, on, or after the date of the enactment of this subsection shall impair the authority of the public agency to impose fees pursuant to this subsection and to use the revenues derived from such fees in accordance with this subsection. “(9) Nonexclusivity of contractual agreements.—No project carried out through the use of a fee collected pursuant to this subsection may be subject to an exclusive long-term lease or use agreement of an air carrier, as defined by the Secretary by regulation. No lease or use agreement of an air carrier with respect to a project constructed or expanded through the use of such fee may restrict the public agency which controls the airport from funding, developing, or assigning new capacity at the airport with revenues derived from fees imposed pursuant to this subsection. “(10) Collection and handling of fees by air carriers.—The regulations issued by the Secretary to carry out this subsection shall— “(A) require air carriers and their agents to collect fees imposed by public agencies pursuant to this subsection; “(B) establish procedures regarding handling and remittance of the amounts so collected; “(C) ensure that such amounts are promptly paid to the public agency for which they are collected less a uniform amount determined by the Secretary as reflecting average necessary and reasonable expenses (net of interest accruing to the air carrier and agent after collection and prior to remittance) incurred in the collection and handling of such fees; and “(D) require that the amount of fees collected pursuant to this subsection with respect to any air transportation be noted on the ticket for such air transportation. “(11) Application process.— “(A) Submission.—A public agency which controls a commercial service airport and is interested in imposing a fee pursuant to this subsection shall submit to the Secretary an application for authority to impose such fee. 104 STAT. 1388–360 “(B) Content.—An application submitted under this paragraph shall contain such information and be in such form as the Secretary may require by regulation, “(C) Opportunity for consultation.—Before submission of an application under this paragraph, a public agency shall provide reasonable notice to, and an opportunity for consultation with, air carriers operating at the airport. The Secretary shall issue regulations which define reasonable notice and contain the following requirements at a minimum: “(i) A public agency must provide written notice— “(I) of individual projects being considered for funding through imposition of a fee pursuant to this subsection; and “(II) of the date and location of a meeting to present such projects to air carriers operating at the airport. “(ii) Not later than 30 days after the issuance of a written notice under clause (i), each air carrier operating at the airport must provide to the public agency written notice of receipt of such notice. Failure of an air carrier to provide such notice may be deemed as certification of agreement with the project by such air carrier under clause (iv). “(iii) Not later than 45 days after the issuance of written notice under clause (i), the public agency must conduct a meeting to provide air carriers— “(I) descriptions of projects; “(II) justifications for projects; and “(III) a detailed financial plan for projects. “(iv) Not later than 30 days after the date of such meeting, each air carrier must provide the public agency with certification of agreement or disagreement with projects (or total plan for such projects). The failure of an air carrier to submit such certification shall be deemed as certification of agreement with the project by such air carrier. Any certification of disagreement shall contain the reasons for such dis-agreement. The absence of such reasons will void the certification of disagreement. “(D) Notice and opportunity for comment.—After receiving an application under this paragraph, the Secretary shall provide notice and an opportunity for comment by air carriers and other interested persons concerning such application. “(E) Approval.—A fee may only be imposed pursuant to this subsection if the Secretary approves an application granting authority for the imposition of such fee. Not later than 120 days after the date of receipt of such an application, the Secretary shall make a final decision regarding approval of such application. “(12) Recordkeeping and audits.— “(A) With respect to collection of fees —The Secretary shall issue regulations requiring such recordkeeping and auditing of accounts maintained by an air carrier and any agency thereof which is collecting a fee imposed pursuant to this subsection and by the public agency which is 104 STAT. 1388–361imposing such fee as may be necessary to ensure compliance with this subsection. “(B) With respect to use of revenues.—The Secretary shall periodically audit and review the use by a public agency which controls an airport of revenues derived from a fee imposed pursuant to this subsection. Upon such review and after a public hearing, the Secretary may terminate the authority of such agency to impose such fee, in whole or in part, to the extent the Secretary determines that revenues derived therefrom are not being used in accordance with this subsection. “(C) Set-off.—If the Secretary determines that a fee imposed pursuant to this subsection is excessive or that the revenues derived from such fee are not being used in accordance with this subsection, the Secretary may set off such amounts as may be necessary to ensure compliance with this subsection against amounts otherwise payable to the public agency under the Airport and Airway Improvement Act of 1982. “(13) Terms and conditions.—Authority granted to impose a fee pursuant to this subsection shall be subject to such terms and conditions as the Secretary may establish to carry out the objectives of this subsection. “(14) Issuance of regulations.—Not later than 180 days after the date of the enactment of this subsection, the Secretary shall issue such regulations as may be necessary to carry out this subsection. Such regulations may prescribe the time and form by which a fee imposed pursuant to this subsection shall take effect. “(15) Definitions.—For purposes of this subsection, the following definitions apply: “(A) Air carrier.—The term ‘air carrier’ includes a foreign air carrier. “(B) Airport, commercial service airport, and public agency.—The terms ‘airport’, ‘commercial service airport’, and ‘public agency’ have the meaning such terms have under section 503 of the Airport and Airway Improvement Act of 1982. “(C) Eligible airport-related project.—The term ‘eligible airport-related project’ means— “(i) a project for airport development under the Air-port and Airway Improvement Act of 1982; “(ii) a project for airport planning under such Act; “(iii) a project for terminal development described in section 513(b) of such Act; “(iv) a project for airport noise capability planning under section 103(b) of the Aviation Safety and Noise Abatement Act of 1979; “(v) a project to carry out noise compatibility measures which are eligible for assistance under section 104 of the Aviation Safety and Noise Abatement Act of 1979 without regard to whether or not a program has been approved for such measures under such section; and “(vi) a project for construction of gates and related areas at which passengers are enplaned or deplaned. 104 STAT. 1388–362 “(D) Secretary.—The term ‘Secretary’ means the Secretary of Transportation.”.