Sec. 1204. Contract Tower Program updates
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Section 47124(b)(1)(B) is amended by striking after such determination is made and inserting after the end of the period described in subsection (d)(6)(C) . Section 47124(b)(3)(E) is amended to read as follows: Of the amounts appropriated under section 106(k)(1), such sums as may be necessary may be used to carry out this paragraph. . Section 47124(b)(4)(C) is amended by striking $2,000,000 and inserting $4,000,000 . Section 47124 is amended by adding at the end the following:
Beginning on the date of enactment of the Federal Aviation Administration Reauthorization Act of 2016 , if an air traffic control tower is operating under the Cost-share Program, the Secretary shall annually calculate a new benefit-to-cost ratio for the tower. Beginning on the date of enactment of the Federal Aviation Administration Reauthorization Act of 2016 , if a tower is operating under the Contract Tower Program and continued under subsection (b)(1), the Secretary shall not calculate a new benefit-to-cost ratio for the tower unless the annual aircraft traffic at the airport where the tower is located decreases by more than 25 percent from the previous year or by more than 60 percent over a 3-year period.
In establishing a benefit-to-cost ratio under paragraph
(1)or paragraph (2), the Secretary may consider only the following costs: The Federal Aviation Administration's actual cost of wages and benefits of personnel working at the tower. The Federal Aviation Administration's actual telecommunications costs of the tower. Relocation and replacement costs of equipment of the Federal Aviation Administration associated with the tower, if paid for by the Federal Aviation Administration. Logistics, such as direct costs associated with establishing or updating the tower's interface with other systems and equipment of the Federal Aviation Administration, if paid for by the Federal Aviation Administration. In establishing a benefit-to-cost ratio under paragraph
(1)or paragraph (2), the Secretary may not consider the following costs: Airway facilities costs, including labor and other costs associated with maintaining and repairing the systems and equipment of the Federal Aviation Administration. Costs for depreciating the building and equipment owned by the Federal Aviation Administration. Indirect overhead costs of the Federal Aviation Administration. Costs for utilities, janitorial, and other services paid for or provided by the airport or the State or political subdivision of a State having jurisdiction over the airport where the tower is located. The cost of new or replacement equipment, or construction of a new or replacement tower, if the costs incurred were incurred by the airport or the State or political subdivision of a State having jurisdiction over the airport where the tower is or will be located. Other expenses of the Federal Aviation Administration not directly associated with the actual operation of the tower. The Secretary shall add a 5 percent margin of error to a benefit-to-cost ratio determination to acknowledge and account for any direct or indirect factors that are not included in the criteria the Secretary used in calculating the benefit-to-cost ratio. The Secretary shall establish procedures— to allow an airport or the State or political subdivision of a State having jurisdiction over the airport where the tower is located not less than 90 days following the receipt of an initial benefit-to-cost ratio determination from the Secretary— to request the Secretary reconsider that determination; and to submit updated or additional data to the Secretary in support of the reconsideration; to allow the Secretary not more than 90 days to review the data submitted under subparagraph (A)(ii) and respond to the request under subparagraph (A)(i); to allow the airport, State, or political subdivision of a State, as applicable, 30 days following the date of the response under subparagraph
(B)to review the response before any action is taken based on a benefit-to-cost determination; and to provide, after the end of the period described in subparagraph (C), an 18-month grace period before cost-share payments are due from the airport, State, or political subdivision of a State if as a result of the benefit-to-cost ratio determination the airport, State, or political subdivision, as applicable, is required to transition to the Cost-share Program. In this section: The term Contract Tower Program means the level I air traffic control tower contract program established under subsection
(a)and continued under subsection (b)(1). The term Cost-share Program means the cost-share program established under subsection (b)(3). . Section 47124(b) is amended— in paragraph (1)(C), by striking the program established under paragraph
(3)and inserting the Cost-share Program ; in paragraph (3)— in the heading, by striking and inserting Contract air traffic control tower program ; Cost-share program in subparagraph (A), by striking contract tower program established under subsection
(a)and continued under paragraph
(1)(in this paragraph referred to as the and inserting Contract Tower Program ) Contract Tower Program ; in subparagraph (B), by striking In carrying out the program and inserting In carrying out the Cost-share Program ; in subparagraph (C), by striking participate in the program and inserting participate in the Cost-share Program ; in subparagraph (D), by striking under the program and inserting under the Cost-share Program ; and in subparagraph (F), by striking the program continued under paragraph
(1)and inserting the Contract Tower Program ; and in paragraph (4)(B)(i)(I), by striking contract tower program established under subsection
(a)and continued under paragraph
(1)or the pilot program established under paragraph
(3)and inserting Contract Tower Program or the Cost-share Program . Section 47124(b)(3)(D) is amended by adding at the end the following: Airports with both Part 121 air service and more than 25,000 passenger enplanements in calendar year 2014 shall be exempt from any cost share requirement under the Cost-share Program. . Notwithstanding the amendments made by this section, the towers for which assistance is being provided under section 41724 of title 49, United States Code, on the day before the date of enactment of this Act may continue to be provided such assistance under the terms of that section as in effect on that day.