PRIA, Government Policy, Made Personal

Summary

The Secretary of Transportation can agree to pay part of the cost for an airline to fly to a place that is not normally eligible for federal subsidy when a State or local government asks. The Secretary must decide within 90 days whether to make the place eligible. The Secretary will approve if the State, local government, or another person agrees to pay 50% of the compensation and will reject it if the request is not reasonable. In deciding what is reasonable, the Secretary looks at how many passengers the place might bring, how much it would cost the federal government, and how far the place is from the nearest hub airport. A special rule requires approval for places in the 48 contiguous States or the District of Columbia that had service before October 23, 1978, are more than 50 miles from the nearest small hub or eligible place, are more than 150 miles from the nearest hub, and where the State/local government or another person will pay 25% (except for communities approved between October 1, 1991, and December 31, 1997). If a place is made eligible, the Secretary must decide within 6 months how much air service it will get. The Secretary asks for views from the community and the paying party and then allows carriers to apply. The government will pay compensation as the Secretary decides, but only while the carrier keeps the agreed service, the paying party keeps paying, and the Secretary thinks the subsidy is needed. The Secretary can ask for advance payments or security. The Secretary will review and can change service levels, and may remove eligibility after the place has had at least 2 years of service if it is in the public interest. A carrier must give at least 30 days’ notice before ending, suspending, or cutting service. No new proposals may be accepted after the date this rule was enacted, and the Secretary may not pay any compensation after the date that is 2 years after enactment.

Title 49, §41736

Transportation, Source: USLM XML via OLRC

(a)Proposals and Decisions.—

(1)A State or local government may propose to the Secretary of Transportation that the Secretary provide compensation to an air carrier to provide air transportation to a place that is not an eligible place under this subchapter. Not later than 90 days after receiving a proposal under this section, the Secretary shall—

(A)decide whether to designate the place as eligible to receive compensation under this section; and

(B)(i)approve the proposal if the State or local government or a person is willing and able to pay 50 percent of the compensation for providing the transportation, and notify the State or local government of the approval; or

(ii)disapprove the proposal if the Secretary decides the proposal is not reasonable under paragraph (2) of this subsection, and notify the State or local government of the disapproval and the reasons for the disapproval.

(2)In deciding whether a proposal is reasonable, the Secretary shall consider, among other factors—

(A)the traffic-generating potential of the place;

(B)the cost to the United States Government of providing the proposed transportation; and

(C)the distance of the place from the closest hub airport.

(b)Approval for Certain Air Transportation.—

Notwithstanding subsection (a)(1)(B) of this section, the Secretary shall approve a proposal under this section to compensate an air carrier for providing air transportation to a place in the 48 contiguous States or the District of Columbia and designate the place as eligible for compensation under this section if—

(1)at any time before October 23, 1978, the place was served by a carrier holding a certificate under section 401 of the Federal Aviation Act of 1958;

(2)the place is more than 50 miles from the nearest small hub airport or an eligible place;

(3)the place is more than 150 miles from the nearest hub airport; and

(4)the State or local government submitting the proposal or a person is willing and able to pay 25 percent of the cost of providing the compensated transportation.

Paragraph (4) does not apply to any community approved for service under this section during the period beginning October 1, 1991, and ending December 31, 1997.

(c)Level of Air Transportation.—

(1)If the Secretary designates a place under subsection (a)(1) of this section as eligible for compensation under this section, the Secretary shall decide, not later than 6 months after the date of the designation, on the level of air transportation to be provided under this section. Before making a decision, the Secretary shall consider the views of any interested community, the appropriate State authority of the State in which the place is located, and the State or local government or person agreeing to pay compensation for the transportation under subsection (b)(4) of this section.

(2)After making the decision under paragraph (1) of this subsection, the Secretary shall provide notice that any air carrier that is willing to provide the level of air transportation established under paragraph (1) for a place may submit an application to provide the transportation. In selecting an applicant, the Secretary shall consider, among other factors—

(A)the factors listed in section 41733(c)(1) of this title; and

(B)the views of the State or local government or person agreeing to pay compensation for the transportation.

(d)Compensation Payments.—

(1)The Secretary shall pay compensation under this section when and in the way the Secretary decides is appropriate. The Secretary shall continue to pay compensation under this section only as long as—

(A)the air carrier maintains the level of air transportation established by the Secretary under subsection (c)(1) of this section;

(B)the State or local government or person agreeing to pay compensation for transportation under this section continues to pay that compensation; and

(C)the Secretary decides the compensation is necessary to maintain the transportation to the place.

(2)The Secretary may require the State or local government or person agreeing to pay compensation under this section to make advance payments or provide other security to ensure that timely payments are made.

(e)Review.—

The Secretary shall review periodically the level of air transportation provided under this section. Based on the review and consultation with any interested community, the appropriate State authority of the State in which the community is located, and the State or local government or person paying compensation under this section, the Secretary may make appropriate adjustments in the level of transportation.

(f)Withdrawal of Eligibility Designations.—

After providing notice and an opportunity for interested persons to comment, the Secretary may withdraw the designation of a place under subsection (a)(1) of this section as eligible to receive compensation under this section if the place has received air transportation under this section for at least 2 years and the Secretary decides the withdrawal would be in the public interest. The Secretary by regulation shall prescribe standards for deciding whether the withdrawal of a designation under this subsection is in the public interest. The standards shall include the factors listed in subsection (a)(2) of this section.

(g)Ending, Suspending, and Reducing Air Transportation.—

An air carrier providing air transportation for compensation under this section may end, suspend, or reduce that transportation below the level of transportation established by the Secretary under this section only after giving the Secretary, the affected community, and the State or local government or person paying compensation under this section at least 30 days’ notice before ending, suspending, or reducing the transportation.

(h)Sunset.—

(1)Proposals.—

No proposal under subsection (a) may be accepted by the Secretary after the date of enactment of this subsection.

(2)Program.—

The Secretary may not provide any compensation under this section after the date that is 2 years after the date of enactment of this subsection.

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 41736(a)49 App.:1389(d)(1), (2)(A), (C).Aug. 23, 1958, Pub. L. 85–726, 72 Stat. 731, § 419(d); added Oct. 24, 1978, Pub. L. 95–504, § 33(a), 92 Stat. 1732; Dec. 8, 1983, Pub. L. 98–213, § 10, 97 Stat. 1461; Oct. 4, 1984, Pub. L. 98–443, § 9(r), 98 Stat. 1708; restated Dec. 30, 1987, Pub. L. 100–223, § 202(a)(1), (2), (b)(1), 101 Stat. 1507, 1513. 41736(b)49 App.:1389(d)(2)(B). 41736(c)(1)49 App.:1389(d)(3)(A). 41736(c)(2)49 App.:1389(d)(4). 41736(d)49 App.:1389(d)(5), (7), (8). 41736(e)49 App.:1389(d)(3)(B). 41736(f)49 App.:1389(d)(2)(D). 41736(g)49 App.:1389(d)(6). In subsection (a)(1), before clause (A), the words “that the Secretary provide compensation to an air carrier to provide air transportation” are substituted for “for compensated air transportation in accordance with this subsection” for clarity. In clause (B)(i), the word “transportation” is substituted for “proposed compensated air transportation” to eliminate unnecessary words. In subsections (c)–(g), the word “transportation” is substituted for “service” for consistency with the source provisions restated in subsections (a) and (b) of this section. In subsections (c)(1) and (e), the words “appropriate State authority” are substituted for “State agency” for clarity and consistency with the source provisions restated in section 41734(a) of the revised title. In subsection (d), the text of 49 App.:1389(d)(5) is omitted as unnecessary because of the restatement. In subsection (f), the word “prescribe” is substituted for “establish” for consistency in the revised title and with other titles of the United States Code.

Editorial Notes

References in Text

section 401 of the Federal Aviation Act of 1958, referred to in subsec. (b)(1), is section 401 of Pub. L. 85–726, which was classified to section 1371 of former Title 49, Transportation, and was repealed by Pub. L. 103–272, § 7(b), July 5, 1994, 108 Stat. 1379, the first section of which enacted subtitles II, III, and V to X of Title 49, Transportation. For disposition of section 1371 of former Title 49, see Table at the beginning of Title 49. The date of enactment of this subsection, referred to in subsec. (h), is the date of enactment of Pub. L. 115–254, which was approved Oct. 5, 2018.

Amendments

2018—Subsec. (h). Pub. L. 115–254 added subsec. (h). 2000—Subsec. (b). Pub. L. 106–181 inserted concluding provisions.

Statutory Notes and Related Subsidiaries

Effective Date

of 2000 AmendmentAmendment by Pub. L. 106–181 applicable only to fiscal years beginning after Sept. 30, 1999, see section 3 of Pub. L. 106–181, set out as a note under section 106 of this title.

§41736 Air Transportation to Noneligible Places