84 STAT. 250

Ante, p. 237. Ante, pp. 238, 239, 243.

68A Stat. 483; 75 Stat. 123. 26 USC 4081.

70 Stat. 388; 75 Stat. 124.

60 Stat. 170.

Report to Congress.

Pub. Law 91-258

SEC. 208. AIRPORT AND AIRWAY TRUST FUND.

May 21, 1970

(a) CREATION OF TRUST FUND.-There is established in the Treasury of the United States a trust fund to be known as the "Airport and Airway Trust Fund" (hereinafter in this section referred to as the "Trust Fund"), consisting of such amounts as may be appropriated or credited to the Trust Fund as provided in this section.

(b) TRANSFER TO TRUST FUND OF AMOUNTS EQUIVALENT TO CERTAIN TAXES.-There is hereby appropriated to the Trust Fund—

(1) amounts equivalent to the taxes received in the Treasury after June 30, 1970, and before July 1, 1980, under subsections (c) and (d) of section 4041 (taxes on aviation fuel) and under sections 4261, 4271, and 4491 (taxes on transportation by air and on use of civil aircraft) of the Internal Revenue Code of 1954;

(2) amounts determined by the Secretary of the Treasury to be equivalent to the taxes received in the Treasury after June 30, 1970, and before July 1, 1980, under section 4081 of such Code, with respect to gasoline used in aircraft; and

(3) amounts determined by the Secretary of the Treasury to be equivalent to the taxes received in the Treasury after June 30, 1970, and before July 1, 1980, under paragraphs (2) and (3) of section 4071(a) of such Code, with respect to tires and tubes of the types used on aircraft.

The amounts appropriated by paragraphs (1), (2), and (3) shall be transferred at least quarterly from the general fund of the Treasury to the Trust Fund on the basis of estimates made by the Secretary of the Treasury of the amounts referred to in paragraphs (1), (2), and (3) received in the Treasury. Proper adjustments shall be made in the amounts subsequently transferred to the extent prior estimates were in excess of or less than the amounts required to be transferred. (c) TRANSFER OF UNEXPENDED FUNDS.-At the close of June 30, 1970, there shall be transferred to the Trust Fund all unexpended funds which have been appropriated before July 1, 1970, out of the general fund of the Treasury to meet obligations of the United States (1) described in subparagraph (B) or (C) of subsection (f) (1) of this section, or (2) incurred under the Federal Airport Act (49 U.S.C., sec. 1101 et seq.).

(d) APPROPRIATION OF ADDITIONAL SUMS.-There are hereby authorized to be appropriated to the Trust Fund such additional sums as may be required to make the expenditures referred to in subsection (f) of this section.

(e) MANAGEMENT OF TRUST FUND.

(1) REPORT.-It shall be the duty of the Secretary of the Treasury to hold the Trust Fund, and (after consultation with the Secretary of Transportation) to report to the Congress each year on the financial condition and the results of the operations of the Trust Fund during the preceding fiscal year and on its expected condition and operations during the next five fiscal years. Such report shall be printed as a House document of the session of the Congress to which the report is made.

May 21, 1970

(2) INVESTMENT.—

Pub. Law 91-258

84 STAT. 251

(A) IN GENERAL.-It shall be the duty of the Secretary of
the Treasury to invest such portion of the Trust Fund as is
not, in his judgment, required to meet current withdrawals.
Such investments may be made only in interest-bearing obli-
gations of the United States or in obligations guaranteed as
to both principal and interest by the United States. For such
purpose, such obligations may be acquired (i) on original
issue at the issue price, or (ii) by purchase of outstanding
obligations at the market price. The purposes for which
obligations of the United States may be issued under the

Second Liberty Bond Act, as amended, are hereby extended 40 Stat. 288.
to authorize the issuance at par of special obligations exclu- 31 USC 774.
sively to the Trust Fund. Such special obligations shall bear
interest at a rate equal to the average rate of interest, com-
puted as to the end of the calendar month next preceding
the date of such issue, borne by all marketable interest-bear-
ing obligations of the United States then forming a part of
the Public Debt; except that where such average rate is not
a multiple of one-eighth of 1 percent, the rate of interest
of such special obligations shall be the multiple of one-eighth
of 1 percent next lower than such average rate. Such special
obligations shall be issued only if the Secretary of the
Treasury determines that the purchase of other interest-
bearing obligations of the United States, or of obligations
guaranteed as to both principal and interest by the United
States on original issue or at the market price, is not in the
public interest.

(B) SALE OF OBLIGATIONS. Any obligation acquired by the
Trust Fund (except special obligations issued exclusively to
the Trust Fund) may be sold by the Secretary of the Treasury
at the market price, and such special obligations may be
redeemed at par plus accrued interest.

(C) INTEREST ON CERTAIN PROCEEDS.—
-The interest on, and
the proceeds from the sale or redemption of, any obligations
held in the Trust Fund shall be credited to and form a part
of the Trust Fund.

(3) APPLICABILITY OF PARAGRAPH (2).-Paragraph (2) of this
subsection shall not apply until the beginning of the fiscal year
immediately following the first fiscal year beginning after June
30, 1970, in which the receipts of the Trust Fund under subsection
(b) exceed 80 percent of the expenditures from the Trust Fund
under subsection (f) (1).

(f) EXPENDITURES FROM TRUST FUND.

(1) AIRPORT AND AIRWAY PROGRAM.-Amounts in the Trust Fund shall be available, as provided by appropriation Acts, for making expenditures after June 30, 1970, and before July 1, 1980, to meet those obligations of the United States

(A) hereafter incurred under title I of this Act (as in effect

on the date of the enactment of this Act), or incurred at any Ante, p. 219. time before July 1, 1970, under the Federal Airport Act (49 60 Stat. 170. U.S.C., sec. 1101 et seq.);

(B) heretofore or hereafter incurred under the Federal

Aviation Act of 1958, as amended (49 U.S.C., sec. 1301 et

seq.), which are attributable to planning, research and 72 Stat. 731.

84 STAT. 252

70 Stat. 87; 79 Stat. 165. Ante, P. 241.

Ante, p. 246.
Ante, p. 245.

Ante, p. 248.

70 Stat. 397.

Ante, p. 250.

Pub. Law 91-258

May 21, 1970

development, construction, or operation and maintenance

of

(i) air traffic control,
(ii) air navigation,

(iii) communications, or
(iv) supporting services,

for the airway system; or

(C) for those portions of the administrative expenses of the Department of Transportation which are attributable to activities described in subparagraph (A) or (B).

(2) TRANSFERS FROM TRUST FUND ON ACCOUNT OF CERTAIN REFUNDS.-The Secretary of the Treasury shall pay from time to time from the Trust Fund into the general fund of the Treasury amounts equivalent to

(A) the amounts paid after June 30, 1970, and before July 1, 1980, in respect of fuel used in aircraft, under sections 6420 (relating to amounts paid in respect of gasoline used on farms), 6421 (relating to amounts paid in respect of gasoline used for certain nonhighway purposes), and 6427 (relating to fuels not used for taxable purposes) of the Internal Revenue Code of 1954, and

(B) the amounts paid under section 6426 of such Code (relating to refund of aircraft use tax where plane transports for hire in foreign air commerce),

on the basis of claims filed for periods beginning after June 30,

1970.

(3) TRANSFERS FROM TRUST FUND ON ACCOUNT OF CERTAIN SECTION 39 CREDITS.-The Secretary of the Treasury shall pay from time to time from the Trust Fund into the general fund of the Treasury amounts equivalent to the credits allowed under section 39 of the Internal Revenue Code of 1954 with respect to fuel used in aircraft during taxable years ending after June 30, 1970, and beginning before July 1, 1980, and attributable to use after June 30, 1970, and before July 1, 1980. Such amounts shall be transferred on the basis of estimates by the Secretary of the Treasury, and proper adjustments shall be made in amounts subsequently transferred to the extent prior estimates were in excess of or less than the credits allowed.

(g) HIGHWAY TRUST FUND AMENDMENT.-Subsection (c) of section 209 of the Highway Revenue Act of 1956 (23 U.S.C., sec. 120 note) is amended by adding at the end thereof the following new paragraph: "(5) ADJUSTMENTS FOR AVIATION USES.—The amounts described in paragraphs (1) (A) and (3)(A) with respect to any period shall (before the application of this subsection) be reduced by appropriate amounts to reflect any amounts transferred to the Airport and Airway Trust Fund under section 208(b) of the Airport and Airway Revenue Act of 1970 with respect to such period. The amounts described in paragraphs (1)(E) and (3) (C) with respect to any period shall (before the application of this subsection) be reduced by appropriate amounts to reflect any amounts transferred to the Airport and Airway Trust Fund under section 208(b)(3) of the Airport and Airway Revenue Act of 1970 with respect to such period."

Payment to the Airport and Airway Trust Fund

For payment to the Airport and Airway Trust Fund as provided for by Section 208(d) of Public Law 91-258, approved May 21, 1970, $576,989,000.

This amount provides for the deficit between receipts from aviation users appropriated into the Airport and Airway Trust Fund and the amounts appropriated from the Trust Fund to meet expenditures authorized by section 208(f) of Public Law 91-258. This appropriation provides for an intragovernmental payment from the General Fund to the Airport and Airway Trust Fund and does not increase total budget authority and outlays.

FEDERAL PAYMENT TO THE AIRPORT AND AIRWAY TRUST FUND

GENERAL STATEMENT

The Airport and Airway Revenue Act of 1970 (Title II of Public Law 91-258) establishes in the Treasury of the United States an Airport and Airway Trust Fund. Section 208(b) of the Act provides that all revenues from aviation user taxes are appropriated to the Trust Fund. Section 208(d) of the Act authorizes additional appropriations to the Trust Fund as may be required to make expenditures for airport and airway activities conducted by the Federal Aviation Administration which are specifically described under Section 208(f) of the Act.

The 1971 estimate reflects a funding requirement of $576,989 thousand, after application of estimated receipts from aviation user taxes, to finance the appropriations which are proposed in this supplemental estimate under the Airport and Airway Trust Fund as follows:

The language proposed for this account provides for a definite appropriation equal to the difference between tax revenues estimated to be collected by the Treasury and appropriations enacted by the Congress under the four operating accounts under the Airport and Airway Trust Fund.

40,000

$ 576,989

$+ 576,989

Safety Regulation

For necessary expenses of the Federal Aviation Administration for safety regulation activities, including operation and maintenance (including administrative expenses for research and development), acquisition and modernization of facilities and equipment, and research, development, and service testing in accordance with the provisions of the Federal Aviation Act (49 U.S.C. 1301-1542), including construction of experimental facilities and acquisition of necessary sites by lease or grant, $3,537,000 to remain available until expended: Provided, That the unexpended balance of the amounts appropriated for safety regulation activities, under the appropriation for "Operations" and "Research and Development," for the current fiscal year, shall be transferred to this appropriation.

This proposed supplemental of $3,537,000 is for noise reduction research specifically directed towards take-off and landing approach operations. The goal is to demonstrate aircraft airworthiness and provide aircraft engine and acoustic performance data which will substantiate findings that it may be possible to provide acoustic treatment of aircraft economically.

GENERAL STATEMENT

This estimate provides for the continuing requirements of the Federal
Aviation Administration for (1) flight standards activities involved in
development, promulgation, and administration of the safety standards,
regulations and rules applicable to airmen and aircraft for all United
States civil aviation operations throughout the world; (2) the development
of standards, rules and regulations governing the physical fitness of
airmen and the direction and administration of an aviation medical research
program; (3) procurement of aircraft and related equipment required to
support the flight standards activities; (4) a program to study, develop
and evaluate devices to enhance the safety of civil aircraft; and (5)
requirements for analysis and solution of noise and sonic boom problems.

The 1971 estimates under this appropriation reflect a requirement of
$105.3 million. Of this amount, $101.8 million is included in the
President's Budget now before the Congress and $3.5 million is included
in the proposed supplemental estimate. The following table reflects a
breakdown of the program estimate by Budgetary account:

The justification for and details of these requirements are set forth elsewhere in the budget under the applicable appropriation accounts

indicated above.