INDEPENDENT ASSESSMENT OF CIVIL RESERVE AIR FLEET VIABILITY.

SEC. 356. INDEPENDENT ASSESSMENT OF CIVIL RESERVE AIR FLEET VIABILITY.(a) Independent Assessment Required.—The Secretary of Defense shall provide for an independent assessment of the viability of the Civil Reserve Air Fleet to be conducted by a federally-funded research and development center selected by the Secretary.(b) Contents of Assessment.—The assessment required by subsection (a) shall include each of the following:(1) An assessment of the Civil Reserve Air Fleet as of the date of the enactment of this Act, including an assessment of—(A) the level of increased use of commercial assets to fulfill Department of Defense transportation requirements as a result of the increased global mobility requirements in response to the terrorist attacks of September 11, 2001;(B) the extent of charter air carrier participation in fulfilling increased Department of Defense transportation requirements as a result of the increased global mobility requirements in response to the terrorist attacks of September 11, 2001;(C) any policy of the Secretary of Defense to limit the percentage of income a single air carrier participating in the Civil Reserve Air Fleet may earn under contracts with the Secretary during any calendar year and the effects of such policy on the air carrier industry in peacetime 122 STAT. 75 and during periods during which the Armed Forces are deployed in support of a contingency operation for which the Civil Reserve Air Fleet is not activated; and(D) any risks to the charter air carrier industry as a result of the expansion of the industry in response to contingency operations resulting in increased demand by the Department of Defense.(2) A strategic assessment of the viability of the Civil Reserve Air Fleet that compares such viability as of the date of the enactment of this Act with the projected viability of the Civil Reserve Air Fleet 5, 10, and 15 years after the date of the enactment of this Act, including for activations at each of stages 1, 2, and 3—(A) an examination of the requirements of the Department of Defense for the Civil Reserve Air Fleet for the support of operational and contingency plans, including any anticipated changes in the Department’s organic airlift capacity, logistics concepts, and personnel and training requirements;(B) an assessment of air carrier participation in the Civil Reserve Air Fleet; and(C) a comparison between the requirements of the Department described in subparagraph (A) and air carrier participation described in subparagraph (B).(3) An examination of any perceived barriers to Civil Reserve Air Fleet viability, including—(A) the operational planning system of the Civil Reserve Air Fleet;(B) the reward system of the Civil Reserve Air Fleet;(C) the long-term affordability of the Aviation War Risk Insurance Program;(D) the effect on United States air carriers operating overseas routes during periods of Civil Reserve Air Fleet activation;(E) increased foreign ownership of United States air carriers;(F) increased operational costs during activation as a result of hazardous duty pay, routing delays, and inefficiencies in cargo handling by the Department of Defense;(G) the effect of policy initiatives by the Secretary of Transportation to encourage international code sharing and alliances; and(H) the effect of limitations imposed by the Secretary of Defense to limit commercial shipping options for certain routes and package sizes.(4) Recommendations for improving the Civil Reserve Air Fleet program, including an assessment of potential incentives for increasing participation in the Civil Reserve Air Fleet program, including establishing a minimum annual purchase amount during peacetime.(c) Submission to Congress.—Upon the completion of the assessment required under subsection (a) and by not later than April 1, 2008, the Secretary shall submit to the congressional defense committees a report on the assessment.(d) Comptroller General Report.—Not later than 90 days after the report is submitted under subsection (c), the Comptroller 122 STAT. 76 General shall conduct a review of the assessment required under subsection (a).