CHANGES IN, AND PHASE-OUT OF, SLOT RULES.

SEC. 231. CHANGES IN, AND PHASE-OUT OF, SLOT RULES. (a) Rules That Apply to All Slot Exemption Requests.— (1) Prompt consideration of requests.—Section 41714(i) is amended to read as follows: “(i) 60-Day Application Process.— “(1) Request for slot exemptions.—Any slot exemption request filed with the Secretary under this section or section 41716 or 41717 (other than subsection (c)) shall include— “(A) the names of the airports to be served; 114 STAT. 107 “(B) the times requested; and “(C) such additional information as the Secretary may require. “(2) Action on request; failure to act.—Within 60 days after a slot exemption request under this section or section 41716 or 41717 (other than subsection (c)) is received by the Secretary, the Secretary shall— “(A) approve the request if the Secretary determines that the requirements of the section under which the request is made are met; “(B) return the request to the applicant for additional information relating to the request to provide air transportation; or “(C) deny the request and state the reasons for its denial. “(3) 60-day period tolled for timely request for more information.—If the Secretary returns under paragraph (2)(B) the request for additional information during the first 20 days after the request is filed, then the 60-day period under paragraph (2) shall be tolled until the date on which the additional information is filed with the Secretary. “(4) Failure to determine deemed approval.—If the Secretary neither approves the request under paragraph (2)(A) nor denies the request under paragraph (2)(C) within the 60-day period beginning on the date the request is received, excepting any days during which the 60-day period is tolled under paragraph (3), then the request is deemed to have been approved on the 61st day, after the request was filed with the Secretary.”. (2) Exemptions may not be transferred.—Section 41714 is further amended by adding at the end the following: “(j) Exemptions May Not Be Transferred.—No exemption from the requirements of subparts K and S of part 93 of title 14, Code of Federal Regulations, granted under this section or section 41716, 41717, or 41718 may be bought, sold, leased, or otherwise transferred by the carrier to which it is granted.”. (3) Equal treatment of affiliated carriers.—Section 41714 (as amended by paragraph (2) of this subsection) is further amended by adding at the end the following: “(k) Affiliated Carriers.—For purposes of this section and sections 41716, 41717, and 41718, an air carrier that operates under the same designator code, or has or enters into a codeshare agreement, with any other air carrier shall not qualify for a new slot or slot exemption as a new entrant or limited incumbent air carrier at an airport if the total number of slots and slot exemptions held by the two carriers at the airport exceed 20 slots and slot exemptions.”. (4) New entrant slots.—Section 41714(c) is amended— (A) by striking the subsection designation and heading and “(1) In general.—If the Secretary” and inserting the following: “(c) Slots for New Entrants.—If the Secretary”; (B) by striking “and the circumstances to be exceptional”; and (C) by striking paragraph (2). (5) Definitions.—Section 41714(h) is amended— 114 STAT. 108 (A) by striking “and section 41734(h)” and inserting “and sections 41715-41718 and 41734(h)”; (B) in paragraph (3) by striking “as defined” and all that follows through “Federal Regulations”; and (C) by adding at the end the following: “(5) Limited incumbent air carrier.—The term ‘limited incumbent air carrier’ has the meaning given that term in subpart S of part 93 of title 14, Code of Federal Regulations; except that— “(A) ‘20’ shall be substituted for ‘12’ in sections 93.213(a)(5), 93.223(c)(3), and 93.225(h); “(B) for purposes of such sections, the term ‘slot’ shall include ‘slot exemptions'; and “(C) for Ronald Reagan Washington National Airport, the Administrator shall not count, for the purposes of section 93.213(a)(5), slots currently held by an air carrier but leased out on a long-term basis by that carrier for use in foreign air transportation and renounced by the carrier for return to the Department of Transportation or the Federal Aviation Administration. “(6) Regional jet.—The term ‘regional jet’ means a passenger, turbofan-powered aircraft with a certificated maximum passenger seating capacity of less than 71. “(7) Nonhub airport.—The term ‘nonhub airport’ means an airport that had less than .05 percent of the total annual boardings in the United States as determined under the Federal Aviation Administration’s Primary Airport Enplanement Activity Summary for Calendar Year 1997. “(8) Small hub airport.—The term ‘small hub airport’ means an airport that had at least .05 percent, but less than .25 percent, of the total annual boardings in the United States as determined under the summary referred to in paragraph (7). “(9) Medium hub airport.—The term ‘medium hub airport’ means an airport that each year has at least .25 percent, but less than 1.0 percent, of the total annual boardings in the United States as determined under the summary referred to in paragraph (7).”. (b) Phase-out of Slot Rules.—Chapter 417 is amended— (1) by redesignating sections 41715 and 41716 as sections 41719 and 41720; and (2) by inserting after section 41714 the following: “§ 41715. Phase-out of slot rules at certain airports “(a) Termination.—The rules contained in subparts S and K of part 93, title 14, Code of Federal Regulations, shall not apply— “(1) after July 1, 2002, at Chicago O’Hare International Airport; and “(2) after January 1, 2007, at LaGuardia Airport or John F. Kennedy International Airport. “(b) Statutory Construction.—Nothing in this section and sections 41714 and 41716–41718 shall be construed— “(1) as affecting the Federal Aviation Administration’s authority for safety and the movement of air traffic; and “(2) as affecting any other authority of the Secretary to grant exemptions under section 41714. “(c) Factors To Consider.— 114 STAT. 109 “(1) In general.—Before the award of slot exemptions under sections 41714 and 41716–41718, the Secretary of Transportation may consider, among other determining factors, whether the petitioning air carrier’s proposal provides the maximum benefit to the United States economy, including the number of United States jobs created by the air carrier, its suppliers, and related activities. The Secretary should give equal consideration to the consumer benefits associated with the award of such exemptions. “(2) Applicability.—Paragraph (1) does not apply in any case in which the air carrier requesting the slot exemption is proposing to use under the exemption a type of aircraft for which there is not a competing United States manufacturer.”. (c) Special Rules Affecting LaGuardia Airport and John F. Kennedy International Airport.—Chapter 417 (as amended by subsection (b) of this section) is amended by inserting after section 41715 the following: “§ 41716. Interim slot rules at New York airports “(a) Exemptions for Air Service to Small and Nonhub Airports.—Subject to section 41714(i), the Secretary of Transportation shall grant, by order, exemptions from the requirements under subparts K and S of part 93 of title 14, Code of Federal Regulations (pertaining to slots at high density airports) to any air carrier to provide nonstop air transportation, using an aircraft with a certificated maximum seating capacity of less than 71, between LaGuardia Airport or John F. Kennedy International Airport and a small hub airport or nonhub airport— “(1) if the air carrier was not providing such air transportation during the week of November 1,1999; “(2) if the number of flights to be provided between such airports by the air carrier during any week will exceed the number of flights provided by the air carrier between such airports during the week of November 1, 1999; or “(3) if the air transportation to be provided under the exemption will be provided with a regional jet as replacement of turboprop air transportation that was being provided during the week of November 1,1999. “(b) Exemptions for New Entrant and Limited Incumbent Air Carriers.—Subject to section 41714(i), the Secretary shall grant, by order, exemptions from the requirements under subparts K and S of part 93 of title 14, Code of Federal Regulations (pertaining to slots at high density airports), to any new entrant air carrier or limited incumbent air carrier to provide air transportation to or from LaGuardia Airport or John F. Kennedy Internationa] Airport if the number of slot exemptions granted under this subsection to such air carrier with respect to such airport when added to the slots and slot exemptions held by such air carrier with respect to such airport does not exceed 20. “(c) Stage 3 Aircraft Required.—An exemption may not be granted under this section with respect to any aircraft that is not a Stage 3 aircraft (as defined by the Secretary). “(d) Preservation of Certain Existing Slot-Related Air Service.—An air carrier that provides air transportation of passengers from LaGuardia Airport or John F. Kennedy International Airport to a small hub airport or nonhub airport, or to an airport 114 STAT. 110 that is smaller than a nonhub airport, on or before the date of the enactment of this subsection pursuant to an exemption from the requirements of subparts K and S of part 93 of title 14, Code of Federal Regulations (pertaining to slots at high density airports), or where slots were issued to an air carrier conditioned on a specific airport being served, may not terminate air transportation for that route before July 1, 2003, unless— “(1) before October 1, 1999, the Secretary received a written air service termination notice for that route; or “(2) after September 30, 1999, the air carrier submits an air service termination notice under section 41719 for that route and the Secretary determines that the carrier suffered excessive losses, including substantial losses on operations on that route during any three quarters of the year immediately preceding the date of submission of the notice.”. (d) Special Rules Affecting Chicago O'Hare International Airport.— (1) Nonstop regional jet, new entrants, and limited incumbents.—Chapter 417 (as amended by subsection (c) of this section) is further amended by inserting after section 41716 the following: “§41717. Interim application of slot rules at Chicago O’Hare International Airport “(a) Slot Operating Window Narrowed.—Effective July 1, 2001, the requirements of subparts K and S of part 93 of title 14, Code of Federal Regulations, do not apply with respect to aircraft operating before 2:45 post meridiem and after 8:14 post meridiem at Chicago O’Hare International Airport. “(b) Exemptions for Air Service to Small and Nonhub Airports.—Effective May 1, 2000, subject to section 41714(i), the Secretary of Transportation shall grant, by order, exemptions from the requirements of subparts K and S of part 93 of title 14, Code of Federal Regulations (pertaining to slots at high density airports), to any air carrier to provide nonstop air transportation, using an aircraft with a certificated maximum seating capacity of less than 71, between Chicago O’Hare International Airport and a small hub or nonhub airport— “(1) if the air carrier was not providing such air transportation during the week of November 1, 1999; “(2) if the number of flights to be provided between such airports by the air carrier during any week will exceed the number of flights provided by the air carrier between such airports during the week of November 1,1999; or “(3) if the air transportation to be provided under the exemption will be provided with a regional jet as replacement of turboprop air transportation that was being provided during the week of November 1, 1999 . “(c) Exemptions for New Entrant and Limited Incumbent Air Carriers.— “(1) In general.—The Secretary shall grant, by order, 30 exemptions from the requirements under subparts K and S of part 93 of title 14, Code of Federal Regulations, to any new entrant air carrier or limited incumbent air carrier to provide air transportation to or from Chicago O’Hare International Airport. 114 STAT. 111 “(2) Deadline for granting exemptions.—The Secretary shall grant an exemption under paragraph (1) within 45 days of the date of the request for such exemption if the person making the request qualifies as a new entrant air carrier or limited incumbent air carrier. “(d) Slots Used To Provide Turboprop Service.— “(1) In general.—Except as provided in paragraph (2), a slot used to provide turboprop air transportation that is replaced with regional jet air transportation under subsection (b)(3) may not be used, sold, leased, or otherwise transferred after the date the slot exemption is granted to replace the turboprop air transportation. “(2) Two-for-one exception.—An air carrier that otherwise could not use 2 slots as a result of paragraph (1) may use 1 of such slots to provide air transportation. “(3) Withdrawal of slot.—If the Secretary determines that an air carrier that is using a slot under paragraph (2) is no longer providing the air transportation that replaced the turboprop air transportation, the Secretary shall withdraw the slot that is being used under paragraph (2). “(4) Continuation.—If the Secretary determines that an air carrier that is using a slot under paragraph (2) is no longer providing the air transportation that replaced the turboprop air transportation with a regional jet, the Secretary shall withdraw the slot being used by the air carrier under paragraph (2) but shall allow the air carrier to continue to hold the exemption granted to the air carrier under subsection (b)(3). “(e) International Service at O’Hare Airport.— “(1) Termination of requirements.—Subject to paragraph (2), the requirements of subparts K and S of part 93 of title 14, Code of Federal Regulations, shall be of no force and effect at Chicago O’Hare International Airport after May 1, 2000, with respect to any aircraft providing foreign air transportation. “(2) Exception relating to reciprocity.—The Secretary may limit access to Chicago O’Hare International Airport with respect to foreign air transportation being provided by a foreign air carrier domiciled in a country to which an air carrier provides nonstop air transportation from the United States if the country in which that carrier is domiciled does not provide reciprocal airport access for air carriers. “(f) Stage 3 Aircraft Required.—An exemption may not be granted under this section with respect to any aircraft that is not a Stage 3 aircraft (as defined by the Secretary). “(g) Preservation of Certain Existing Slot-Related Air Service.—An air carrier that provides air transportation of passengers from Chicago O’Hare International Airport to a small hub airport or nonhub airport, or to an airport that is smaller than a nonhub airport, on or before the date of the enactment of this subsection pursuant to an exemption from the requirements of subparts K and S of part 93 of title 14, Code of Federal Regulations (pertaining to slots at high density airports), or where slots were issued to an air carrier conditioned on a specific airport being served, may not terminate air transportation service for that route for a period of 1 year after the date on which those requirements cease to apply to such airport unless— 114 STAT. 112 “(1) before October 1, 1999, the Secretary received a written air service termination notice for that route; or “(2) after September 30, 1999, the air carrier submits an air service termination notice under section 41719 for that route and the Secretary determines that the carrier suffered excessive losses, including substantial losses on operations on that route during the calendar quarters immediately preceding submission of the notice.”. (2) Elimination of basic essential air service exemption limit.—Section 41714(a)(3) is amended by striking “; except that” and all that follows through “132 slots”. (3) Prohibition of slot withdrawals.—Section 41714(b)(2) is amended— (A) by inserting “at Chicago O’Hare International Airport” after “a slot”; and (B) by striking “if the withdrawal” and all that follows through “1993”. (4) Conversions.—Section 41714(b)(4) is amended to read as follows: “(4) Conversions of slots.—Effective May 1, 2000, slots at Chicago O’Hare International Airport allocated to an air carrier as of November 1, 1999, to provide foreign air transportation shall be made available to such carrier to provide interstate or intrastate air transportation.”. (5) Return OF withdrawn slots.—The Secretary shall return any slot withdrawn from an air carrier under section 41714(b) of title 49, United States Code, before the date of the enactment of this Act, to that carrier on April 30, 2000. (e) Special Rules Affecting Reagan Washington National Airport.— (1) In general.—Chapter 417 (as amended by subsection (d) of this section) is further amended by inserting after section 41717 the following: “§ 41718. Special rules for Ronald Reagan Washington National Airport “(a) Beyond-Perimeter Exemptions.—The Secretary shall grant, by order, 12 exemptions from the application of sections 49104(a)(5), 49109, 49111(e), and 41714 of this title to air carriers to operate limited frequencies and aircraft on select routes between Ronald Reagan Washington National Airport and domestic hub airports and exemptions from the requirements of subparts K and S of part 93, Code of Federal Regulations, if the Secretary finds that the exemptions will— “(1) provide air transportation with domestic network benefits in areas beyond the perimeter described in that section; “(2) increase competition by new entrant air carriers or in multiple markets; “(3) not reduce travel options for communities served by small hub airports and medium hub airports within the perimeter described in section 49109; and “(4) not result in meaningfully increased travel delays. “(b) Within-Perimeter Exemptions.—The Secretary shall grant, by order, 12 exemptions from the requirements of sections 49104(a)(5), 49111(e), and 41714 of this title and subparts K and S of part 93 of title 14, Code of Federal Regulations, to air carriers for providing air transportation to airports that were designated 114 STAT. 113 as medium hub or smaller airports within the perimeter established for civil aircraft operations at Ronald Reagan Washington National Airport under section 49109. The Secretary shall develop criteria for distributing slot exemptions for flights within the perimeter to such airports under this paragraph in a manner that promotes air transportation— “(1) by new entrant air carriers and limited incumbent air carriers; “(2) to communities without existing nonstop air transportation to Ronald Reagan Washington National Airport; “(3) to small communities; “(4) that will provide competitive nonstop air transportation on a monopoly nonstop route to Ronald Reagan Washington National Airport; or “(5) that will produce the maximum competitive benefits, including low fares. “(c) Limitations.— “(1) Stage 3 aircraft required.—An exemption may not be granted under this section with respect to any aircraft that is not a Stage 3 aircraft (as defined by the Secretary). “(2) general exemptions.—The exemptions granted under subsections (a) and (b) may not be for operations between the hours of 10:00 p.m. and 7:00 a.m. and may not increase the number of operations at Ronald Reagan Washington National Airport in any 1-hour period during the hours between 7:00 a.m. and 9:59 p.m. by more than two operations. “(3) Allocation of within-perimeter exemptions.—Of the exemptions granted under subsection (b)— “(A) four shall be for air transportation to small hub airports and nonhub airports; and “(B) eight shall be for air transportation to medium hub and smaller airports. “(4) Applicability to exemption no. 5133.—Nothing in this section affects Exemption No. 5133, as from time-to-time amended and extended. “(d) Application Process.— “(1) Deadline for submission.—All requests for exemptions under this section must be submitted to the Secretary not later than the 30th day following the date of the enactment of this subsection. “(2) Deadline for comments.—All comments with respect to any request for an exemption under this section must be submitted to the Secretary not later than the 45th day following the date of the enactment of this subsection. “(3) Deadline for final decision.—Not later than the 90th day following the date of the enactment of this Act, the Secretary shall make a decision regarding whether to approve or deny any request that is submitted to the Secretary in accordance with paragraph (1). “(e) Applicability of Certain Laws.—Neither the request for, nor the granting of an exemption, under this section shall be considered for purposes of any Federal law a major Federal action significantly affecting the quality of the human environment.”. (2) Override of mwaa restriction.—Section 49104(a)(5) is amended by adding at the end thereof the following: “(D) Subparagraph (C) does not apply to any increase in the number of instrument flight rule takeoffs and landings 114 STAT. 114 necessary to implement exemptions granted by the Secretary under section 41718.”. (3) MWAA noise-related grant assurances.— (A) In general.—In addition to any condition for approval of an airport development project that is the subject of a grant application submitted to the Secretary under chapter 471 of title 49, United States Code, by the Metropolitan Washington Airports Authority, the Authority shall be required to submit a written assurance that, for each such grant made for use at Ronald Reagan Washington National Airport for fiscal year 2000 or any subsequent fiscal year— (i) the Authority will make available for that fiscal year funds for noise compatibility planning and programs that are eligible to receive funding under such chapter in an amount not less than 10 percent of the amount apportioned to the Ronald Reagan Washington National Airport under section 47114 of such title for that fiscal year; and (ii) the Authority will not divert funds from a high priority safety project in order to make funds available for noise compatibility planning and programs. (B) Waiver.—The Secretary may waive the requirements of subparagraph (A) for any fiscal year for which the Secretary determines that the Authority is in compliance with applicable airport noise compatibility planning and program requirements under part 150 of title 14, Code of Federal Regulations. (C) Sunset.—This paragraph shall cease to be in effect 5 years after the date of the enactment of this Act if on that date the Secretary certifies that the Authority has achieved compliance with applicable noise compatibility planning and program requirements under part 150 of title 14, Code of Federal Regulations. (4) Report.—Not later than 1 year after the date of the enactment of this Act, the Secretary shall certify to the Committee on Commerce, Science, and Transportation of the Senate, the Committee on Transportation and Infrastructure of the House of Representatives, the governments of Maryland, Virginia, and West Virginia, and the metropolitan planning organization for Washington, D.C., that noise standards, air traffic congestion, airport-related vehicular congestion, safety standards, and adequate air service to communities served by small hub airports and medium hub airports within the perimeter described in section 49109 of title 49, United States Code, have been maintained at appropriate levels. (f) Noise Compatibility Planning and Programs.—Section 47117(e) is amended by adding at the end the following: “(3) Priority.—The Secretary shall give priority in making grants under paragraph (1)(A) to applications for airport noise compatibility planning and programs at and around— “(A) Chicago O’Hare International Airport; “(B) LaGuardia Airport; “(C) John F. Kennedy International Airport; and “(D) Ronald Reagan Washington National Airport.”. 114 STAT. 115 (g) Study of Community Noise Levels Around High Density Airports.—The Secretary shall study community noise levels in the areas surrounding the four high-density airports in fiscal year 2001 and compare those levels with the levels in such areas before 1991. (h) Extension of Application Approvals.—Section 49108 is amended by striking “2001” and inserting “2004”. (i) Elimination of Deadline for Appointment of Members to Board of Directors.—Section 49106(c)(6) is amended by striking subparagraph (C) and by redesignating subparagraph (D) as subparagraph (C). (j) Conforming Amendments.— (1) Operation limitations.—Section 49111 is amended by striking subsection (e). (2) Chapter analysis.—The analysis for subchapter I of chapter 417 is amended— (A) redesignating the items relating to sections 41715 and 41716 as items relating to sections 41719 and 41720, respectively; and (B) by inserting after the item relating to section 41714 the following: “41715. Phase-out of slot rules at certain airports. “41716. Interim slot rules at New York airports. “41717. Interim application of slot rules at Chicago O’Hare International Airport. “41718. Special Rules for Ronald Reagan Washington National Airport.”.