To provide for an increase in the number of slots available at Ronald Reagan Washington National Airport, and for other purposes.

1. Adds SEC. __. RONALD REAGAN WASHINGTON NATIONAL AIRPORT SLOTS at the end of the bill

   Adds a section

   In S. 223 · Placed on Calendar Senate

   (3) a listing and accounting for earmarks provided for the Department of Transportation scheduled to be rescinded at the end of the current fiscal year.

   Inserted: SEC. __. RONALD REAGAN WASHINGTON NATIONAL AIRPORT SLOTS.

   Inserted: (a) Increase in Number of Slot Exemptions.--Section 41718 is amended by adding at the end thereof the following:

   Inserted: "(g) Additional Slots.--

   Inserted: "(1) Initial increase in exemptions.--Within 90 days after the date of enactment of the FAA Air Transportation Modernization and Safety Improvement Act, the Secretary shall grant, by order, 24 slot 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 routes between Ronald Reagan Washington National Airport and airports located beyond the perimeter described in section 49109 or, as provided in paragraph (2)(C), airports located within that perimeter, 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--

   Inserted: "(A) provide air transportation with domestic network benefits in areas beyond the perimeter described in section 49109;

   Inserted: "(B) increase competition in multiple markets;

   Inserted: "(C) not reduce travel options for communities served by small hub airports and medium hub airports within the perimeter described in section 49109;

   Inserted: "(D) not result in meaningfully increased travel delays;

   Inserted: "(E) enhance options for nonstop travel to and from the beyond-perimeter airports that will be served as a result of those exemptions;

   Inserted: "(F) have a positive impact on the overall level of competition in the markets that will be served as a result of those exemptions; and

   Inserted: "(G) produce public benefits, including the likelihood that the service to airports located beyond the perimeter described in section 49109 will result in lower fares, higher capacity, and a variety of service options.

   Inserted: "(2) New entrants and limited incumbents.--

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   Inserted: "(A) Distribution.--Of the exemptions made available under paragraph (1), the Secretary shall make 10 available to limited incumbent air carriers or new entrant air carriers and 14 available to other incumbent air carriers.

   Inserted: "(B) Network connectivity.--In allocating exemptions to incumbent air carriers under this paragraph, the Secretary shall afford a preference to carriers offering significant domestic network benefits within the perimeter described in section 49109.

   Inserted: "(C) Use.--Only a limited incumbent air carrier or new entrant air carrier may use an additional exemption granted under this subsection to provide service between Ronald Reagan Washington National Airport and an airport located within the perimeter described in section 49109.

   Inserted: "(3) Improved network slots.--If an incumbent air carrier (other than a limited incumbent air carrier) that uses a slot for service between Ronald Reagan Washington National Airport and a large hub airport located within the perimeter described in section 49109 is granted an additional exemption under this subsection, it shall, upon receiving the additional exemption, discontinue the use of that slot for such within-perimeter service and operate, in place of such service, service between Ronald Reagan Washington National Airport and an airport located beyond the perimeter described in section 49109.

   Inserted: "(4) Conditions.--Beyond-perimeter flight operations carried out by an air carrier using an exemption granted under this subsection shall be subject to the following conditions:

   Inserted: "(A) An air carrier may not operate a multi-aisle or widebody aircraft in conducting such operations.

   Inserted: "(B) An air carrier granted an exemption under this subsection is prohibited from selling, trading, leasing, or otherwise transferring the rights to its beyond-perimeter exemptions, except through an air carrier merger or acquisition.

   Inserted: "(5) Operations deadline.--An air carrier granted a slot exemption under this subsection shall commence operations using that slot within 60 days after the date on which the exemption was granted.

   Inserted: "(6) Impact study.--Within 17 months after granting the additional exemptions authorized by paragraph (1) the Secretary shall complete a study of the direct effects of the additional exemptions, including the extent to which the additional exemptions have--

   Inserted: "(A) caused congestion problems at the airport;

   Inserted: "(B) had a negative effect on the financial condition of the Metropolitan Washington Airports Authority;

   Inserted: "(C) affected the environment in the area surrounding the airport; and

   Inserted: "(D) resulted in meaningful loss of service to small and medium markets within the perimeter described in section 49109.

   Inserted: "(7) Additional exemptions.--

   Inserted: "(A) Determination.--The Secretary shall determine, on the basis of the study required by paragraph (6), whether--

   Inserted: "(i) the additional exemptions authorized by paragraph (1) have had a substantial negative effect on Ronald Reagan Washington National Airport, Washington Dulles International Airport, or Baltimore/Washington Thurgood Marshall International Airport; and

   Inserted: "(ii) the granting of additional exemptions under this paragraph may, or may not, reasonably be expected to have a substantial negative effect on any of those airports.

   Inserted: "(B) Authority to grant additional exemptions.--Beginning 6 months after the date on which the impact study is concluded, the Secretary may grant up to 8 slot exemptions to incumbent air carriers, in addition to those granted under paragraph (1) of this subsection, if the Secretary determines that--

   Inserted: "(i) the additional exemptions authorized by paragraph (1) have not had a substantial negative effect on any of those airports; and

   Inserted: "(ii) the granting of additional exemptions under this subparagraph may not reasonably be expected to have a negative effect on any of those airports.

   Inserted: "(C) Network connectivity.--In allocating exemptions to incumbent air carriers under subparagraph (B), the Secretary shall afford a preference to carriers offering significant domestic network benefits within the perimeter described in section 49109.

   Inserted: "(D) Improved network slots.--If an incumbent air carrier (other than a limited incumbent air carrier) that uses a slot for service between Ronald Reagan Washington National Airport and a large hub airport located within the perimeter described in section 49109 is granted an additional exemption under subparagraph (B), it shall, upon receiving the additional exemption, discontinue the use of that slot for such within-perimeter service and operate, in place of such service, service between Ronald Reagan Washington National Airport and an airport located beyond the perimeter described in section 49109.

   Inserted: "(E) Conditions.--Beyond-perimeter flight operations carried out by an air carrier using an exemption granted under subparagraph (B) shall be subject to the following conditions:

   Inserted: "(i) An air carrier may not operate a multi-aisle or widebody aircraft in conducting such operations.

   Inserted: "(ii) An air carrier granted an exemption under this subsection is prohibited from selling, trading, leasing, or otherwise transferring the rights to its beyond-perimeter exemptions, except through an air carrier merger or acquisition.

   Inserted: "(F) Additional exemptions not permitted.--The Secretary may not grant exemptions in addition to those authorized by paragraph (1) if the Secretary determines that--

   Inserted: "(i) the additional exemptions authorized by paragraph (1) have had a substantial negative effect on any of those airports; or

   Inserted: "(ii) the granting of additional exemptions under subparagraph (B) of this paragraph may reasonably be expected to have a substantial negative effect on 1 or more of those airports.

   Inserted: "(h) Scheduling Priority.--In administering this section, the Secretary shall afford a scheduling priority to operations conducted by new entrant air carriers and limited incumbent air carriers over operations conducted by other air carriers granted additional slot exemptions under subsection (g) for service to airports located beyond the perimeter described in section 49109.".

   Inserted: (b) Hourly Limitation.--Section 41718(c)(2) is amended--

   Inserted: (1) by striking "3 operations" and inserting "4 operations"; and

   Inserted: (2) by striking "subsections (a) and (b)" and inserting "under this section".

   Inserted: (c) Limited Incumbent Definition.--Section 41714(h)(5) is amended--

   Inserted: (1) by inserting "not" after "shall" in subparagraph (B);

   Inserted: (2) by striking "and" after the semicolon in subparagraph (B);

   Inserted: (3) by striking "Administration." in subparagraph (C) and inserting "Administration; and"; and

   Inserted: (4) by adding at the end the following:

   Inserted: "(D) for purposes of section 41718, an air carrier that holds only slot exemptions".

   Inserted: (d) Revenues and Fees at the Metropolitan Washington Airports.--Section 49104(a) is amended by striking paragraph (9) and inserting the following:

   Inserted: "(9) Notwithstanding any other provision of law, revenues derived at either of the Metropolitan Washington Airports, regardless of source, may be used for operating and capital expenses (including debt service, depreciation and amortization) at the other airport.".

   Original wording

   At the end of the bill insert the following:

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As printed