Division R — Aviation Worker Relief
R Aviation Worker Relief
Sec. 2 Definitions
Unless otherwise specified, the terms in section 40102(a) of title 49, United States Code, shall apply to this division, except that—
the term contractor means a person that performs airport ground support or catering functions under contract with a passenger air carrier; and
the term employee means an individual, other than a corporate officer, who is employed by an air carrier or contractor.
I Aviation Worker Relief
Sec. 101 Pandemic relief for aviation workers
Financial assistance— Notwithstanding any other provision of law, the President shall take the following actions to preserve aviation jobs and compensate airline industry workers:
Issue grants that shall exclusively be used for the continuation of payment of employee wages, salaries, and benefits to—
specified entities, in an aggregate amount equal to $37,000,000,000; and
contractors of air carriers, in an aggregate amount equal to $3,000,000,000.
Subject to section 102(c), issue unsecured loans and loan guarantees to air carriers in amounts that do not, in the aggregate, exceed $21,000,000,000.
Assurances— To be eligible for assistance under this section, an air carrier shall enter into an agreement with the Secretary of Transportation, or otherwise certify, as determined appropriate by the President, that such air carrier shall comply with any actions required under this division.
Administrative expenses— Notwithstanding any other provision of law, the Secretary may use $100,000,000 of the funds made available under section 101(a)(2) for costs and administrative expenses associated with the provision of loans or guarantees authorized under such section.
Specified entity defined— In this section, the term specified entity means—
an air carrier that is authorized to conduct operations under part 121 of title 14, Code of Federal Regulations; or
an air carrier that is authorized to conduct operations under part 135 of title 14, Code of Federal Regulations, that—
transports passengers by aircraft on a scheduled basis; or
transports property or mail by aircraft on a scheduled or unscheduled basis.
Sec. 102 Procedures for financial assistance
Awardable amounts— The President shall disburse grants under section 101(a)(1)—
to a specified entity (as such term is defined in section 101(d)), in an amount equal to the salaries and benefits reported by the air carrier to the Department of Transportation pursuant to part 241 of title 14, Code of Federal Regulations, for the period from April 1, 2019, through September 30, 2019;
to a specified entity (as such term is defined in section 101(d)) that does not transmit reports under such part 241, in an amount that such air carrier certifies, using sworn financial statements or other appropriate data, as the amount of wages, salaries, benefits, and other compensation that such air carrier paid the employees of such air carrier during the period from April 1, 2019, through September 30, 2019; and
to a contractor, in an amount that the contractor certifies, using sworn financial statements or other appropriate data, as the amount of wages, salaries, benefits, and other compensation that such contractor paid the employees of such contractor during the period from April 1, 2019, through September 30, 2019.
Deadlines and procedures—
Procedures— The President shall publish streamlined and expedited procedures—
not later than 5 days after the date of enactment of this Act for air carriers and contractors to submit requests for compensation under section 101(a)(1); and
not later than 30 days after the date of enactment of this Act for air carriers to submit requests for loans and loan guarantees under section 101(a)(2).
Issuance of grants— The President shall award initial grants under section 101(a)(1) not later than 10 days after the date of enactment of this Act.
Discretionary grants— For any funds made available under paragraph (1) of section 101(a) that remain available after the issuance of grants pursuant to paragraph (2) of such section, the President shall determine an appropriate method for the timely distribution of the remaining funds in an equitable manner to air carriers for the payment of employee wages, salaries, and benefits.
Interest rates— A loan issued under section 101(a)(2) shall provide for repayment with no interest for a period of at least 1 year after the loan is issued. The President may otherwise provide for repayment at an interest rate commensurate with the level of risk associated with the loan.
Priority of government claim— In any proceeding initiated by or against an air carrier under chapter 7 or 11 of title 11, United States Code, with outstanding debt on a loan provided under section 101(a)(2), any claim by the Government with respect to such debt shall assume the highest status of any other claim against such air carrier, whether secured or unsecured.
Audits— The inspector general of the Department of Transportation may audit certifications under subsection (a)(2).
Sec. 103 Terms and conditions
Share repurchases—
In general— Notwithstanding any other provision of law, an air carrier receiving assistance under section 101 may not purchase an equity interest of such air carrier on a national securities exchange.
Definitions— In this subsection:
Exchange— The term exchange has the meaning given the terms in section 3 of the Securities Exchange Act of 1934 1(15 U.S.C. 78c).
National securities exchange— The term national securities exchange means an exchange registered under section 6 of the Securities Exchange Act of 1934 (15 U.S.C. 78f).
Prohibition on use of funds for payments to shareholders or bondholders— An air carrier receiving financial assistance under section 101 may not use the proceeds of such assistance to make any distribution of funds to shareholders or bondholders, including stock dividends.
Executive compensation—
In general— The President may provide financial assistance under section 101 to an air carrier only if such air carrier enters into a legally binding agreement with the President that, during the 10-year period following the date of enactment of this Act, the air carrier’s chief executive officer will receive, from the air carrier—
during any 12 consecutive months of such 10-year period, total compensation not in excess of an amount that is 50 times the median compensation earned by all employees of such air carrier in calendar year 2019; and
severance pay or other benefits upon termination of employment with the air carrier not in excess of the maximum total compensation received from the air carrier in calendar year 2019.
Total compensation defined— In this subsection, the term total compensation includes salary, bonuses, awards of stock, and other financial benefits provided by an air carrier to an officer or employee of the air carrier.
Financial protection of Government—
In general— To the extent to which any participating air carrier accepts financial assistance, in the form of accepting the proceeds of any loans guaranteed by the government under this title, the President is authorized to enter into contracts under which the Government, contingent on the financial success of the participating corporation, participate in the gains of the participating corporation or its security holders through the use of such instruments as warrants, stock options, common or preferred stock, or other appropriate equity instruments.
Deposits in treasury— All amounts collected by the President under this subsection shall be deposited in the Treasury as miscellaneous receipts.
Air carrier maintenance outsourcing—
In general— A passenger air carrier receiving assistance under section 101 may not apply the proceeds of such assistance toward a contract for heavy maintenance work at a facility located outside of the United States if such contract would increase the proportion of maintenance work performed outside of the United States to all maintenance work performed by or on behalf of such air carrier at any location.
Definition— In this section, the term heavy maintenance work has the meaning given the term in section 44733(g)(1) of title 49, United States Code.
Sec. 104 Reports
Report— Not later than October 1, 2020, the President shall submit to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate a report on the financial status of the air carrier industry, including a description of each grant or loan issued under section 101.
Update— Not later than the last day of the 1-year period following the date of enactment of this Act, the President shall update and submit to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate the report described in subsection (a).
Sec. 105 Coordination
In implementing this title with respect to air carriers, the Secretary shall coordinate with the Secretary of Transportation.
II Labor Protections
Sec. 201 Assistance irrespective of labor costs
The President, or any department, agency, or actor of the Federal government, may not condition the provision of any financial assistance under section 101(a) of this division or section 13 of the Federal Reserve Act (12 U.S.C. 261 et seq.) on an air carrier’s implementation of measures to reduce labor costs or to enter into negotiations with the certified bargaining representative of a craft or class of employees of the air carrier under section 2 of the Railway Labor Act (45 U.S.C. 152) regarding pay or other terms and conditions of employment.
Sec. 202 Collective bargaining and snap-back
In general— Notwithstanding any other provision of law, any contractual relief or reduction to rates of pay, rules, and working conditions agreed to by the authorized representatives of the employees of an air carrier, or otherwise imposed on such employees, during or as result of the pandemic of the coronavirus COVID–19 by an air carrier that receives financial assistance under section 101 shall be terminated within 6 months, unless the authorized representatives of the employees choose to make an alternative agreement with the air carrier.
Definition of authorized representative— In this section, the term authorized representative means an exclusive representative of employees within the meaning of section of the Railway Labor Act (45 U.S.C. 152).
Sec. 203 Protection of organizing activity
A person receiving financial assistance under section 101 shall remain neutral in any communications with employees with respect to any efforts of an employee to organize, recruit, or assist in the organizing a labor organization.
Sec. 204 Working and travel conditions
A person receiving financial assistance under section 101 shall adhere to guidance published by the Centers for Disease Control and Prevention and applicable public health authorities for the duration of the national emergency declared by the President under the National Emergencies Act (50 U.S.C. 1601 et seq.) related to the pandemic of the coronavirus COVID–19 for providing safe conditions for employees and passengers, including providing employees with adequate and sufficient personal protective equipment and ensuring all aircraft and facilities owned or operated by such person are clean and sanitary.
Sec. 205 Labor union representation on air carrier boards
An air carrier receiving financial assistance under section 101 shall designate at least one seat on the air carrier’s board of directors for an individual who is a member or officer of a labor organization representing air carrier employees, with such individual to be named by such organization.
Sec. 206 Furloughed worker protections
An air carrier receiving financial assistance under section 101 shall take such action as is necessary to ensure that, with respect to the national emergency declared by the President under the National Emergencies Act (50 U.S.C. 1601 et seq.) related to the pandemic of the coronavirus COVID–19—
if an employee of such air carrier was provided health insurance benefits or other welfare benefits described in subparagraph (A) or (B) of section 3(1) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1002(1)) from the air carrier prior to such emergency, such employee shall retain such benefits at an equivalent rate for the duration of such emergency;
employees of such air carrier are credited any furlough time taken as a result of the pandemic for years of service for purposes of any employee benefit plan (as defined in section 3(3) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1002(3)) with respect to which the employee is a participant; and
an employee of such air carrier who is voluntarily or involuntarily furloughed as a result of the national emergency declared by the President under the National Emergencies Act (50 U.S.C. 1601 et seq.) related to the pandemic of the coronavirus COVID–19 may, upon reemployment or recall to such air carrier, be entitled to the following benefits under an employee pension benefit plan that such employee would have received if the employee had remained continuously employed with the air carrier, similar to benefit rights under subchapter II of chapter 43 of title 38, United States Code:
An employee shall be treated as not having incurred a break in service with the employer or employers maintaining the plan by reason of the furlough.
The period of furlough shall be deemed to constitute service with the employer or employers maintaining the plan for purposes of vesting, participation, and determining the employee’s benefit accruals.
An employee shall be entitled to make-up missed employee contributions or elective deferrals that could have been made to a qualified defined contribution plan during the period of furlough. Makeup contributions under this paragraph may be made during the period beginning on the date of recall and whose duration is three times the period of the furlough, such payment period not to exceed 5 years.
The employer reemploying or recalling such employee shall contribute all employer contributions that the employer would have made on behalf of such employee to qualified defined contribution plans, including plans commonly known as 401(k) plans, if the employee had remained continuously employed.
If employer contributions to a plan are contingent on the employee making an employee contribution or elective deferral, the employer contribution is required only to the extent the employee makes the payment to the plan with respect to such contributions or deferrals. No such payment may exceed the amount the employee would have been permitted or required to contribute had the employee remained continuously employed by the employer throughout the period of service. Any payment to the plan described in this paragraph shall be made during the period beginning on the date of recall and whose duration is three times the period of the person’s furlough, such payment period not to exceed 5 years.
Sec. 207 Healthcare for unprotected workers
In general— The Secretary may not provide any financial assistance under this Act to an air carrier unless the air carrier enters into a legally binding agreement with the Secretary that the air carrier will provide, and will require any contractor, subcontractor, or affiliate of the air carrier, including any contractor, subcontractor, or affiliate that performs airline catering services, to provide, to all employees, including airline catering employees, health insurance benefits equal to or greater than the hourly health and welfare fringe benefit rate published by the Department of Labor pursuant to the McNamara-O’Hara Service Contract Act of 1965 (41 U.S.C. 6710–6707) and section 4.52 of title 29, Code of Federal Regulations, for all hours worked by each such employee.
Effective period— Subsection (a) shall apply to an air carrier receiving assistance under section 101 for the 5-year period beginning on the date on which such assistance was awarded.
Definitions—
Airline catering employee— The term airline catering employee means an employee who performs airline catering services.
Airline catering services— The term airline catering services means preparation, assembly, or both, of food, beverages, provisions and related supplies for delivery, and the delivery of such items, directly to aircraft or to a location on or near airport property for subsequent delivery to aircraft.
Sec. 208 Employee wages and leave
Wages— Section 6 of the Fair Labor Standards Act of 1938 (29 U.S.C. 206) is amended by adding at the end the following:
“(h) Employees in industries saved with taxpayer dollars
“(1) In general—Notwithstanding any other provision of law, subject to the requirements of this subsection, the wage rate in effect under subsection (a)(1) with respect to an employee of an employer described in paragraph (2), or any individual who provides labor or services for remuneration for such employer, regardless of whether the individual is classified as an independent contractor or otherwise by such employer, shall be not less than $15.00 per hour.
“(2) Employer—An employer described in this paragraph is an employer who—
“(A) receives financial assistance under section 101 of the Aviation Worker Relief Act of 2020; or
“(B) who provides goods or services under a contract to an employer who receives financial assistance under such section.
“(3) Treatment of non-employees—An individual who provides labor or services for remuneration to an employer as described in paragraph (1) shall be treated as an employee for the purposes of sections 10 through 17 of this Act.
“(4) Period of application—This subsection shall apply to an employer described in paragraph (2) for the 10-year period beginning on the date such assistance was awarded.”
Benefits and leave— Notwithstanding any other provision of law, an air carrier receiving financial assistance under section 101 shall, for the duration of the national emergency declared by the President under the National Emergencies Act (50 U.S.C. 1601 et seq.) related to the pandemic of the coronavirus COVID–19—
satisfy all funding obligations under part 3 of title I of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1081 et seq.) with respect to each plan to which such part applies and to which the air carrier is obligated to contribute for plan years beginning or ending during the duration of such emergency;
provide employees with a guaranteed wage for every workweek that provides each employee continued payments in the amount of 100 percent of the employee’s full wages and for the employee’s total expected hours per workweek in the event that the employee is terminated, furloughed, experiences a reduction in work hours, or otherwise suffers any loss of such wages during such period; and
provide paid medical or sick leave and paid family leave to encourage employees who are diagnosed with or experiencing symptoms of COVID–19 or are under quarantine relating to the coronavirus pandemic, or caring for a dependent or any individual experiencing such symptoms or under such a quarantine.
Sec. 209 Limitation on rejection of collective bargaining agreements
Definitions—
Covered air carrier— The term covered air carrier means an air carrier that receives Federal financial assistance.
Covered period— The term covered period, with respect to a covered air carrier, means the period—
beginning on the date on which the covered air carrier first receives Federal financial assistance; and
ending on the date that is 10 years after the date on which the covered air carrier last receives Federal financial assistance.
Debtor in possession— The term debtor in possession has the meaning given such term in section 1101 of title 11, United States Code.
Federal financial assistance— The term Federal financial assistance means financial assistance or a credit instrument received from the Federal Government under this Act.
Trustee— The term trustee means a trustee appointed in a case commenced by, or commenced against, a covered air carrier under title 11, United States Code.
Limitation— If a covered air carrier commences a case or if an involuntary case is commenced against a covered air carrier under title 11, United States Code, during the covered period with respect to the covered air carrier, the covered air carrier, the debtor in possession, or the trustee may not seek a rejection of, or interim relief from, a collective bargaining agreement under—
section 1113 of title 11, United States Code; or
any other provision of law.
Sec. 210 Increased wage priority
Section 507(a) of title 11, United States Code, is amended—
in paragraph (4)—
by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively;
in the matter preceding clause (i), as so redesignated, by inserting “(A)” before “Fourth”;
in subparagraph (A), as so designated, in the matter preceding clause (i), as so redesignated—
by striking “$10,000” and inserting “$20,000”;
by striking “within 180 days”; and
by striking “or the date of the cessation of the debtor’s business, whichever occurs first,”; and
by adding at the end the following:
“(B) Severance pay described in subparagraph(A)(i) shall be deemed earned in full upon the layoff or termination of employment of the individual to whom the severance is owed.”
in paragraph (5)—
in subparagraph (A)—
by striking “within 180 days”; and
by striking “or the date of the cessation of the debtor’s business, whichever occurs first”; and
by striking subparagraph (B) and inserting the following:
“(B) for each such plan, to the extent of the number of employees covered by each such plan, multiplied by $20,000.”
Sec. 211 Rejection of collective bargaining agreements
In general— Section 1113 of title 11, United States Code, is amended by striking subsections (a) through (f) and inserting the following:
“(a) The debtor in possession, or the trustee if one has been appointed under this chapter, other than a trustee in a case covered by subchapter IV of this chapter and by title I of the Railway Labor Act (45 U.S.C. 151 et seq.), may reject a collective bargaining agreement only in accordance with this section. In this section, a reference to the trustee includes the debtor in possession.
“(b) No provision of this title shall be construed to permit the trustee to unilaterally terminate or alter any provision of a collective bargaining agreement before complying with this section. The trustee shall timely pay all monetary obligations arising under the terms of the collective bargaining agreement. Any such payment required to be made before a plan confirmed under section 1129 is effective has the status of an allowed administrative expense under section 503.
“(c)
“(1) If the trustee seeks modification of a collective bargaining agreement, the trustee shall provide notice to the labor organization representing the employees covered by the collective bargaining agreement that modifications are being proposed under this section, and shall promptly provide an initial proposal for modifications to the collective bargaining agreement. Thereafter, the trustee shall confer in good faith with the labor organization, at reasonable times and for a reasonable period in light of the complexity of the case, in attempting to reach mutually acceptable modifications of the collective bargaining agreement.
“(2) The initial proposal and subsequent proposals by the trustee for modification of a collective bargaining agreement shall be based upon a business plan for the reorganization of the debtor, and shall reflect the most complete and reliable information available. The trustee shall provide to the labor organization all information that is relevant for negotiations. The court may enter a protective order to prevent the disclosure of information if disclosure could compromise the position of the debtor with respect to the competitors in the industry of the debtor, subject to the needs of the labor organization to evaluate the proposals of the trustee and any application for rejection of the collective bargaining agreement or for interim relief pursuant to this section.
“(3) In consideration of Federal policy encouraging the practice and process of collective bargaining and in recognition of the bargained-for expectations of the employees covered by the collective bargaining agreement, modifications proposed by the trustee—
“(A) shall be proposed only as part of a program of workforce and nonworkforce cost savings devised for the reorganization of the debtor, including savings in management personnel costs;
“(B) shall be limited to modifications designed to achieve a specified aggregate financial contribution for the employees covered by the collective bargaining agreement (taking into consideration any labor cost savings negotiated within the 12-month period before the filing of the petition), and shall be not more than the minimum savings essential to permit the debtor to exit bankruptcy, such that confirmation of a plan of reorganization is not likely to be followed by the liquidation, or the need for further financial reorganization, of the debtor (or any successor to the debtor) in the short term; and
“(C) shall not be disproportionate or overly burden the employees covered by the collective bargaining agreement, either in the amount of the cost savings sought from such employees or the nature of the modifications.
“(d)
“(1) If, after a period of negotiations, the trustee and the labor organization have not reached an agreement over mutually satisfactory modifications, and further negotiations are not likely to produce mutually satisfactory modifications, the trustee may file a motion seeking rejection of the collective bargaining agreement after notice and a hearing. Absent agreement of the parties, no such hearing shall be held before the expiration of the 21-day period beginning on the date on which notice of the hearing is provided to the labor organization representing the employees covered by the collective bargaining agreement. Only the debtor and the labor organization may appear and be heard at such hearing. An application for rejection shall seek rejection effective upon the entry of an order granting the relief.
“(2) In consideration of Federal policy encouraging the practice and process of collective bargaining and in recognition of the bargained-for expectations of the employees covered by the collective bargaining agreement, the court may grant a motion seeking rejection of a collective bargaining agreement only if, based on clear and convincing evidence—
“(A) the court finds that the trustee has complied with the requirements of subsection (c);
“(B) the court has considered alternative proposals by the labor organization and has concluded that such proposals do not meet the requirements of subsection (c)(3)(B);
“(C) the court finds that further negotiations regarding the proposal of the trustee or an alternative proposal by the labor organization are not likely to produce an agreement;
“(D) the court finds that implementation of the proposal of the trustee shall not—
“(i) cause a material diminution in the purchasing power of the employees covered by the collective bargaining agreement;
“(ii) adversely affect the ability of the debtor to retain an experienced and qualified workforce; or
“(iii) impair the labor relations of the debtor such that the ability to achieve a feasible reorganization would be compromised; and
“(E) the court concludes that rejection of the collective bargaining agreement and immediate implementation of the proposal of the trustee is essential to permit the debtor to exit bankruptcy, such that confirmation of a plan of reorganization is not likely to be followed by liquidation, or the need for further financial reorganization, of the debtor (or any successor to the debtor) in the short term.
“(3) If the trustee has implemented a program of incentive pay, bonuses, or other financial returns for insiders, senior executive officers, or the twenty next most highly compensated employees or consultants providing services to the debtor during the bankruptcy, or such a program was implemented within 180 days before the date of the filing of the petition, the court shall presume that the trustee has failed to satisfy the requirements of subsection (c)(3)(C).
“(4) In no case shall the court enter an order rejecting a collective bargaining agreement that would result in modifications to a level lower than the level proposed by the trustee in the proposal found by the court to have complied with the requirements of this section.
“(5) At any time after the date on which an order rejecting a collective bargaining agreement is entered, or in the case of a collective bargaining agreement entered into between the trustee and the labor organization providing mutually satisfactory modifications, at any time after that collective bargaining agreement has been entered into, the labor organization may apply to the court for an order seeking an increase in the level of wages or benefits, or relief from working conditions, based upon changed circumstances. The court shall grant the request only if the increase or other relief is not inconsistent with the standard set forth in paragraph (2)(E).
“(e) During a period during which a collective bargaining agreement at issue under this section continues in effect and a motion for rejection of the collective bargaining agreement has been filed, if essential to the continuation of the business of the debtor or in order to avoid irreparable damage to the estate, the court, after notice and a hearing, may authorize the trustee to implement interim changes in the terms, conditions, wages, benefits, or work rules provided by the collective bargaining agreement. Any hearing under this subsection shall be scheduled in accordance with the needs of the trustee. The implementation of such interim changes shall not render the application for rejection moot and may be authorized for not more than 14 days in total.
“(f)
“(1) Rejection of a collective bargaining agreement constitutes a breach of the collective bargaining agreement, and shall be effective no earlier than the entry of an order granting such relief.
“(2) Notwithstanding paragraph (1), solely for purposes of determining and allowing a claim arising from the rejection of a collective bargaining agreement, rejection shall be treated as rejection of an executory contract under section 365(g) and shall be allowed or disallowed in accordance with section 502(g)(1). No claim for rejection damages shall be limited by section 502(b)(7). Economic self-help by a labor organization shall be permitted upon a court order granting a motion to reject a collective bargaining agreement under subsection (d) or pursuant to subsection (e), and no provision of this title or of any other provision of Federal or State law may be construed to the contrary.
“(g) The trustee shall provide for the reasonable fees and costs incurred by a labor organization under this section, upon request and after notice and a hearing.
“(h) A collective bargaining agreement that is assumed shall be assumed in accordance with section 365.”
Prohibition on modification of retiree benefits— Section 1114 of title 11, United States Code, is further amended by adding at the end the following:
“(n) Notwithstanding any other provision in this title, the trustee may not modify retiree benefits if the debtor is an air carrier, as such term is defined in section 40102 of title 49, United States Code, or an affiliate of such air carrier, that received assistance under the Aviation Worker Relief Act of 2020.”
III Airline Industry Financial Oversight
Sec. 301 Creation of Office of Airline Industry Financial Oversight
In general— There is hereby established, within the Office of the Secretary of Transportation, the Office of Airline Industry Financial Oversight.
Director of Office— The office established under this section shall be headed by a Director, who shall be a career employee of the Department of Transportation and selected on the basis of such individual’s knowledge of financial markets, airline operations, and finance, and such other qualifications as the Secretary considers relevant.
Sec. 302 Responsibilities of Office of Airline Industry Financial Oversight
The Director of the Office of Airline Industry Financial Oversight shall—
assess, not less than once every 12 months, the financial fitness of each passenger air carrier conducting operations under part 121 of title 14, Code of Federal Regulations;
determine and prescribe minimum capital and funding requirements for each such air carrier to ensure that no air carrier would be reasonably likely to become insolvent as the result of a substantial reduction in demand for air travel following the occurrence of a terror attack, pandemic, or other national or global event that reduces economic activity;
require each such air carrier to conduct an annual stress test to determine the extent of financial stress that the air carrier can withstand before becoming financially insolvent, using at least 3 sets of assumptions regarding the severity of financial stress and to report the results of such test to the Office for analysis;
based on an analysis of the stress tests performed under paragraph (3), annually adjust the minimum capital and funding requirements imposed under paragraph (2); and
impose such other requirements, including through the issuance of regulations, as the director determines necessary to ensure the continued operations of air carriers despite an event described in paragraph (2).
Sec. 303 Access to information
In general— In discharging the responsibilities enumerated in section 302, the director or employees of the office may inspect such financial records in an air carrier’s possession as the director or employees of the office deem appropriate.
Protection of trade secrets— The Director and employees of the Office of Airline Industry Financial Oversight shall protect, from public disclosure, any material containing trade secrets in the Office’s custody, in accordance with section 1905 of title 18, United States Code.
Sec. 304 Reports to Congress
Not later than February 1 of each calendar year, the Director of the office established under section 301 shall submit to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate a report describing each action taken under section 302 during the preceding calendar year.
Sec. 305 Rulemaking authority
The Secretary may issue such regulations as the Secretary determines are necessary to implement the requirements of this title.
Sec. 306 Authorization of appropriations
There is authorized to be appropriated to the Secretary of Transportation $3,000,000 for each of fiscal years 2020 through 2023 to carry out this title to remain available until expended.
IV Airport Relief
Sec. 401 Emergency pandemic funding for airports
In general— There is authorized to be appropriated, from the General Fund of the Treasury, $10,000,000,000 for the Secretary of Transportation to issue grants to airport sponsors for the purposes of emergency response, cleaning, sanitization, janitorial services, staffing, workforce retention, paid leave, procurement of protective health equipment and training for employees and contractors, debt service payments, infrastructure projects and airport operations.
Methodology for disbursement— Funds shall be apportioned as set forth in clauses (i) and (ii) of section 47114(c)(1)(C) of title 49, United States Code, and there shall be no maximum apportionment limit. Funds provided under this section shall not be subject to reduced apportionment under section 47114(f) of such title. Any remaining funds shall be distributed to sponsors based on each airport’s passenger enplanements compared to total passenger enplanements of all airports, for the most recent calendar year the Secretary apportioned funds pursuant to section 47114(c).
High-Need airports— The Secretary shall set aside 2 percent of the remaining funds described in subsection (b) to provide grants to commercial service airports or general aviation airports that demonstrate the highest financial need.
Workforce retention—
In general— Except as otherwise provided in this subsection, all airports receiving funds under subsection (a) shall continue to employ, through December 31, 2020, at least 90 percent of the number of individuals employed by the airport as of the date of enactment of this Act.
Waiver— The Secretary may waive the workforce retention requirement under this subsection 120 days after the date of enactment of this Act if the Secretary determines—
the airport is experiencing economic hardship as a direct result of the requirement; or
the requirement reduces aviation safety or security.
Small airports— This subsection shall not apply to nonhub airports or nonprimary airports receiving funds under subsection (c).
Relief to airport concessions— An airport sponsor must use at least 2 percent of any funds received under subsection (a) to provide financial relief to airport concessionaires experiencing economic hardship (in terms of rent, minimum annual guarantees, lease obligations, or other fees). With respect to funds under this subsection, airport sponsors must show good faith efforts to provide relief to small business concerns owned and controlled by socially and economically disadvantaged businesses, as such term is defined under section 47113 of title 49, United States Code.
Cost share— The Federal share payable of the costs for which a grant is made under this section or under the Consolidated Appropriations Act, 2020 (Public Law 116–94) shall be 100 percent.
Quality assurance— The Secretary shall institute adequate policies, procedures and internal controls to prevent waste, fraud, abuse and program mismanagement for the distribution of funds under this section.
Availability— Sums authorized to be appropriated under this sections shall remain available for 3 fiscal years.
Limitations— The funds made available under this section shall not be subject to any limitation on obligations set forth in an appropriations Act as applied to the heading “Grants-in-Aid for Airports”.
Administrative costs— The Secretary may retain up to 0.1 percent of the funds provided under this section to fund the award and oversight of grants made under this heading.
Definitions— In this section:
Airport concession— the term airport concession means a business, other than air carrier, located on an airport that is engaged in the sale of consumer goods or services to the public under an agreement with an airport, another concessionaire, or the owner or lessee of a terminal.
Airport; general aviation airport; nonhub airport; sponsor— The terms airport, general aviation airport, nonhub airport, and sponsor have the meanings given those terms in section 47102 of title 49, United States Code.
Commercial service airport— The term commercial service airport means a public use airport that reported at least 2500 passenger boardings at such airport during fiscal year 2018.
Sec. 402 Maintaining pre-crisis airport improvement program levels
Section 47114(c)(1) of title 49, United States Code, is amended by adding at the end the following:
“(J) Special rule for fiscal years 2021 through 2023—Notwithstanding subparagraph (A), the Secretary shall apportion to a sponsor of an airport under that subparagraph for each of fiscal years 2021 through 2023 an amount based on the number of passenger boardings at the airport during calendar year 2018 if the number of passenger boardings at the airport during calendar year 2018 are higher than the number of passenger boardings that would be otherwise calculated under subparagraph (A).”
Sec. 403 National aviation preparedness plan
In general— The Secretary of Transportation, in coordination with the Secretary of Health and Human Services, the Secretary of Homeland Security and other appropriate stakeholders, shall develop a national aviation preparedness plan for communicable disease outbreaks.
Contents of plan— A plan developed under subsection (a) shall, at a minimum—
require involvement from multiple airports on a national level;
provide airports and air carriers with an adaptable and scalable framework with which to align their individual plans;
improve coordination among airports, air carriers, Customs and Border Patrol, the Centers for Disease Control and Prevention, and other appropriate Federal stakeholders on developing policies that increase the effectiveness of screening, quarantining, and contact-tracing with respect to inbound passengers; and
fully incorporate elements referenced in the recommendation of the Comptroller General of the United States to the Secretary of Transportation contained in Report No. GAO 16–127.
V Small Community Air Service
Sec. 501 Continuation of certain air service
Action of Secretary— The Secretary of Transportation shall take appropriate action to ensure that all communities that receive scheduled air service before March 1, 2020, continue to receive adequate air transportation service and that essential air service to small communities continues without interruption and in a manner that maintains well-functioning heath care supply chains, including medical device, medical supplies, and pharmaceutical supply chains.
Antitrust immunity— The Secretary may grant an exemption under section 41308 of title 49, United States Code, to 2 air carriers for the limited purpose of such cooperation as is necessary to ensure that small communities continue to receive an adequate level of air transportation service.
Sec. 502 Tolling of EAS limitations
The Secretary may not order the termination of essential air service on the basis of the applicable place failing to meet the definition of an eligible place under subparagraph (B) or (C) of section 41731(a)(1) of title 49, United States Code, if such community was otherwise an eligible place as defined under section 41731 of such title on March 1, 2020.
Sec. 503 Sunset
The requirements of this title, and any order issued by the Secretary under this title, shall sunset on the day that is 6 months after the last effective date of a national emergency declared by the President under the National Emergencies Act (50 U.S.C. 1601 et seq.) related to the pandemic of the coronavirus COVID–19.
VI Consumer Protections
Sec. 601 Airline price gouging during disaster or emergency
In general— Section 41712 of title 49, United States Code, is amended by adding at the end the following:
“(d) Airfare pricing and fees during disaster or other emergency
“(1) In general—It shall be an unfair or deceptive practice under subsection (a) for any ticket agent, air carrier, foreign air carrier, or other person selling or offering to sell a ticket for air transportation on a covered flight to—
“(A) impose any unreasonable increase in the price of such ticket, as compared to the ticket price in effect on the day on which a flight becomes a covered flight; and
“(B) charge any fee for a change to, or cancellation of, such ticket, or for any difference in fare for an itinerary change.
“(2) Covered flight defined—In this subsection, the term covered flight means a flight of an air carrier or foreign air carrier departing from, or arriving at, an airport located in an area with respect to which—
“(A) a major disaster or emergency declared by the President under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.) is in effect and State or local authorities have ordered a mandatory evacuation;
“(B) a public health emergency declared pursuant to section 319 of the Public Health Service Act (42 U.S.C. 247d) is in effect;
“(C) a national emergency declared by the President under the National Emergencies Act (50 U.S.C. 1601 et seq.) is in effect; or
“(D) a restriction on air travel is in effect, including restrictions on non-essential air transportation or nationwide bans imposed on air transportation during a disaster, emergency, or pandemic.
“(3) Savings provision—Nothing in this subsection, or the amendment made by this subsection, may be construed to limit or otherwise affect any responsibility of any ticket agent, air carrier, or foreign air carrier or other person offering to sell a ticket for air transportation during a major disaster or emergency.”
Sec. 602 Airline refunds during national disasters or emergencies
In general— Not later than 30 days after the date of enactment of this Act, the Secretary of Transportation shall require that any covered seller who sells a ticket for a passenger to take a covered flight, and either such flight is cancelled by the air carrier or such ticket is canceled by the passenger, such covered seller shall promptly offer the passenger a choice of—
a full monetary refund for such ticket, including any ancillary fees paid; and
an alternative compensation method determined appropriate by the covered seller, including credit, voucher, or other mechanism to compensate a passenger.
Credit or voucher— An alternative compensation method provided pursuant to subsection (a)(2) may not expire for at least 1 year date of the covered flight.
Definitions— In this section, the following definitions apply:
Covered flight— The term covered flight has the meaning given to such term in section 41712(d) of title 49, United States Code.
Covered seller— The term covered seller means a ticket agent, air carrier, foreign air carrier, or other person offering to sell a ticket for air transportation.
Sec. 603 Conditions on airline ancillary fees
In general— Not later than 90 days after the date of enactment of this Act, the Secretary of Transportation shall require covered air carriers to report to the Secretary of Transportation, not less than quarterly, all ancillary revenues collected by the air carrier during the quarter for which the report is provided.
Contents— In implementing the requirement under subsection (a), the Secretary shall require reporting of ancillary revenues from, at a minimum, the following optional fees or charges:
Booking fees, including fees for telephone reservations.
Fees for priority check-in and security screening.
Fees for the transportation of carry-on, first checked, second checked, excess, and oversized or overweight baggage.
Fees for transportation of in-flight medical equipment.
Fees for in-flight entertainment, beverages, and food.
Fees for internet access.
Fees for seating assignments.
Fees for reservation cancellation and change.
Charges for lost tickets.
Revenue from the sale of travel insurance
Fees for unaccompanied minor and passenger assistance.
Fees for pets.
Definitions— In this section, the following definitions apply:
Ancillary revenues— The term ancillary revenues means charges paid by airline passengers that are not included in the standard ticket fare.
Covered air carrier—
In general— The term covered air carrier means an air carrier covered under part 241 of title 14, Code of Federal Regulations.
Exclusion— The term covered air carrier excludes air carriers with annual revenues of less than $20,000,000.
VII Environmental Protections
Sec. 701 Sustainable aviation fuel development program
In general— The Secretary of Transportation, in consultation with the Department of Agriculture and the Environmental Protection Agency, shall make competitive grants to eligible entities to offset the cost of a project to develop, transport, or store sustainable aviation fuels that would reduce United States greenhouse gas emissions.
Selection— In making grants under subsection (a), the Secretary shall consider—
the anticipated public benefits of the project;
the potential to increase the commercial application of sustainable aviation fuels among the United States commercial aviation and aerospace industry;
the potential greenhouse gases emitted from the project;
the potential for new job creation; and
the potential the project has in reducing United States greenhouse gas emissions associated with air travel.
Authorization of appropriations— There are authorized to be appropriated $200,000,000 for each of the fiscal years 2021 through 2026 to carry out this section.
Report— Not later than October 1, 2026, the Secretary shall submit to the Committee on Commerce, Science, and Transportation, the Committee on Environment and Public Works, and the Committee on Agriculture, Nutrition, and Forestry of the Senate, and the Committee on Transportation and Infrastructure, the Committee on Energy and Commerce, and the Committee on Agriculture of the House of Representatives, a report describing the results of the grant program authorized by this section. The report shall include the following:
A description of the entities and projects that received grants under this section.
Description of whether the program is leading to an increase in commercial application of sustainable aviation fuels by United States aviation and aerospace industry stakeholders.
The economic impacts resulting from the grants to and operation of the project.
Eligibility— Entities eligible to receive a grant under this section shall include State and local governments, nongovernmental entities, air carriers, airports, and businesses engaged in the development, transportation, or storage of sustainable aviation fuels.
Definition of sustainable aviation fuel— The term sustainable aviation fuel means liquid fuel consisting of synthesized hydrocarbons which meets the requirements of ASTM International Standard D7566 or ASTM International Standard D1655, Annex A1, subsection A.1.2.2, and is derived from biomass (as defined in section 45K(c)(3) of the Internal Revenue Code of 1986), waste streams, or gaseous carbon oxides, conforms to the standards, recommended practices and guidance agreed to by the United States pursuant to the European Union Emissions Trading Scheme Prohibition Act of 2011 (Public Law 112–200) for addressing aircraft emissions, and achieves at least a 30 percent reduction in greenhouse gas emissions on a lifecycle basis compared to conventional jet fuel.
Sec. 702 Airline Assistance to Recycle and Save Program
Establishment— Not later than 90 days after the date of enactment of this Act, the Secretary shall establish and carry out a program, to be known as the “Airline Assistance to Recycle and Save Program”, under which the Secretary shall purchase high-polluting aircraft from air carriers in exchange for commitments from such air carriers to purchase fuel-efficient aircraft.
Application— To be eligible for the program established under subsection (a), an air carrier shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require, including a description of an high-polluting aircraft of the air carrier.
Program requirements—
List of eligible aircraft— In carrying out the program established under subsection (a), the Secretary, in consultation with the Administrator, shall prepare, maintain, publicize, and make available through a publicly available website, lists of aircraft that are—
high-polluting aircraft; and
fuel-efficient aircraft that are on the market or in production.
Commitment requirement— In carrying out the program established under subsection (a), the Secretary shall issue such regulations as are necessary to set requirements for the commitment to purchase a fuel-efficient aircraft described in subsection (a), including a timing requirement for the purchase of a fuel-efficient aircraft.
Use of purchased aircraft— Notwithstanding any other provision of law, the Secretary may sell, to an air carrier or eligible foreign air carrier, parts or components of aircraft purchased under this division.
Regulations— Not later than 30 days after the date of enactment of this Act, the Secretary shall issue such regulations as are necessary to carry out this section.
Authorization of appropriations— There is authorized to carry out the program established under this section $1,000,000,000 and such sums shall remain available until expended.
Definitions— In this section:
Administrator— The term Administrator means the Administrator of the Environmental Protection Agency.
Aircraft manufacturer— The term aircraft manufacturer has the meaning given such term in section 44301 of title 49, United States Code.
Eligible foreign air carrier—
In general— The term eligible foreign air carrier means a foreign air carrier as such term is defined in section 40102 of title 49, United States Code.
Exclusion— The term eligible foreign air carrier does not include a foreign air carrier that—
is domiciled in a country that is a state sponsor of terrorism; or
has a majority ownership interest of individuals or entities domiciled in a country that is a state sponsor of terrorism.
Secretary— The term Secretary means the Secretary of Transportation.
State sponsor of terrorism— The term state sponsor of terrorism means a country the government of which the Secretary of State determines has repeatedly provided support for international terrorism pursuant to—
section 1754(c)(1)(A) of the Export Control Reform Act of 2018 (50 U.S.C. 4318(c)(1)(A));
section 620A of the Foreign Assistance Act of 1961 (22 U.S.C. 2371);
section 40 of the Arms Export Control Act (22 U.S.C. 2780); or
any other provision of law.
Sec. 703 Expansion of voluntary airport low emission program
Section 40117 of title 49, United States Code, is amended—
in subsection (a)(3)(G) by striking “if the airport is located in an air quality nonattainment area (as defined in section 171(2) of the Clean Air Act (42 U.S.C. 7501(2)) or a maintenance area referred to in section 175A of such act (42 U.S.C. 7505a)”; and
in subsection (b) by adding at the end the following:
“(8) Priority of projects—In carrying out this section, the Secretary shall prioritize funding for airports in areas located in an air quality nonattainment area (as defined in section 171(2) of the Clean Air Act (42 U.S.C. 7501(2)) or a maintenance area referred to in section 175A of such act (42 U.S.C. 7505a).”
Sec. 704 Airline carbon emissions offsets and goals
Carbon offsetting program—
In general— Not later than 90 days after the enactment of this Act, the Administrator of the Federal Aviation Administration shall require each air carrier receiving assistance under section 101, to fully offset the annual carbon emissions of such air carriers for domestic flights beginning in 2025.
Verification— In issuing regulations and guidance to carry out to paragraph (1), the Administrator shall develop standards and practices to ensure the use of carbon offsets by air carriers are real, additional, permanent, verifiable, and not double counted and align with standards, recommended practices, assessment tools, and guidance agreed to by the United States pursuant to the European Union Emissions Trading Scheme Prohibition Act of 2011 (Public Law 112–200) for addressing aircraft emissions.
Auditing— An air carrier covered under this subsection shall take reasonable and continuous measures to ensure any carbon offsets credited to, or purchased by, such carrier continue to be accurate.
Certification— The Administrator shall annually certify that an air carrier’s carbon offsetting program aligns with the standards developed pursuant to paragraph (2).
Carbon emissions goal—
In general— The Administrator of the Federal Aviation Administration, with the concurrence of the Administrator of the Environmental Protection Agency, shall require each air carrier receiving assistance under section 101 to—
make and achieve a binding commitment to reduce the greenhouse gas emissions attributable to the domestic flights of such air carrier in every calendar year, beginning with 2021, on a path consistent with a 25 percent reduction in the aviation sector’s emissions from 2019 levels by 2035, and a 50 percent reduction in the sector’s emissions from 2019 levels by 2050, applying the standards, recommended practices, and guidance agreed to by the United States pursuant to the European Union Emissions Trading Scheme Prohibition Act of 2011 (Public Law 112–200) for addressing aircraft emissions; and
submit to the Administrator, annually, a report containing a plan for meeting the commitment described in subparagraph (A) and evidence of compliance with such commitment, including the annual emissions of the air carrier, use of alternative fuels, and any other means of implementing such commitment.
Certification—
In general— Not later than 5 years after the date of enactment of this Act, and not less frequently than every 5 years thereafter, the Administrator shall certify each air carrier covered under this subsection that is taking such actions as are necessary to meet the requirements established pursuant to paragraph (1).
Remediation— With respect to any air carrier covered under this subsection that the Administrator does not certify under subparagraph (A), the Administrator, in consultation with such air carrier, shall, not later than 180 days after the last date on which a certification could have been made under such subparagraph, develop a plan to ensure such air carrier meets the requirements established pursuant to paragraph (1).
Public information— The Secretary shall make publicly available the reports described in paragraph (1).
Limitation— Nothing in this subsection shall affect or alter the authorities and responsibilities to address greenhouse gases under any other provision of law.
International competitiveness— In issuing regulations to carry out to subsection (b) and (c), the Administrator shall create a mechanism that ensures foreign air carriers that enter the national airspace system have an equivalent emissions reductions target or programs such that the United States airline industry is not at a competitive disadvantage.
Sec. 705 Research and development of sustainable aviation fuels
There is authorized to be appropriated to the Federal Aviation Administration $100,000,000 for each of fiscal years 2021 through 2026 for research and development of sustainable aviation fuels.
Sec. 706 Improving consumer information regarding release of greenhouse gases from flights
In general— Not later than January 1, 2023, the Secretary of Transportation shall develop and implement, by regulation, a program to require air carriers that receive assistance under section 101 provide passengers with information regarding greenhouse gas emissions resulting from each individual flight that is—
customized to account for such emissions associated with each aircraft and the flight route of such aircraft; and
made available on the first display of any website selling any ticket for such flight, following a search of a requested itinerary in a format that is easily visible to the purchaser.
Public reporting— The Secretary shall publish monthly data and information that anonymously aggregates and analyzes the information provided to individual passengers under to subsection (a). Such information and data shall—
be accessible to the public on the internet; and
identify and quantify the greenhouse gas emissions and relative climate change impact of each passenger air carrier that receives assistance under section 101.
Sec. 707 Study on certain climate change mitigation efforts
In general— Not later than 90 days after the date of enactment of this Act, the Secretary of Transportation shall seek to enter into an agreement with the National Academies of Sciences, Engineering, and Medicine (referred to in this section as the “National Academies”) to conduct a study on climate change mitigation efforts with respect to the civil aviation and aerospace industries.
Study contents— In conducting the study under subsection (a), the National Academies shall—
identify climate change mitigation efforts, including efforts relating to emerging technologies, in the civil aviation and aerospace industries;
develop and apply an appropriate indicator for assessing the effectiveness of such efforts;
identify gaps in such efforts;
identify barriers preventing expansion of such efforts; and
develop recommendations with respect to such efforts.
Reports—
Findings of study— Not later than 1 year after the date on which the Secretary enters into an agreement for a study pursuant to subsection (a), the Secretary shall submit to the appropriate congressional committees the findings of the study.
Assessment— Not later than 180 days after the date on which the Secretary submits the findings pursuant to paragraph (1), the Secretary, acting through the Administrator of the Federal Aviation Administration, shall submit to the appropriate congressional committees a report that contains an assessment of the findings.
Authorization of appropriations— There is authorized to be appropriated to the Secretary to carry out this section $1,500,000.
Definitions— In this section:
Appropriate congressional committees— The term appropriate congressional committees means the Committee on Transportation and Infrastructure of the House of Representatives, the Committee on Commerce, Science, and Transportation of the Senate, and other congressional committees determined appropriate by the Secretary.
Climate change mitigation efforts— The term climate change mitigation efforts means efforts, including the use of technologies, materials, processes, or practices, that contribute to the reduction of greenhouse gas emissions.
VIII Miscellaneous
Sec. 801 Separability
If any provision of this division (including any amendment made by this division) or the application thereof to any person or circumstance is held invalid, the remainder of this division (including any amendment made by this division) and the application thereof to other persons or circumstances shall not be affected thereby.
Sec. 802 Application of law
Chapter 83 of title 41, United States Code, shall not apply with respect to purchases made in response to—
the public health emergency declared on January 31, 2020 under section 319 of the Public Health Service Act (42 U.S.C. 247d); or
the emergency declared by the President on March 13, 2020, under section 501 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5191) and under any subsequent major disaster declaration under section 401 of such Act that supersedes such emergency declaration.