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    "ocrText": "The original documents are located in Box 2, folder \"Aircraft Noise (14)\" of the James M.\nCannon Files at the Gerald R. Ford Presidential Library.\nCopyright Notice\nThe copyright law of the United States (Title 17, United States Code) governs the making of\nphotocopies or other reproductions of copyrighted material. Gerald Ford donated to the United\nStates of America his copyrights in all of his unpublished writings in National Archives collections.\nWorks prepared by U.S. Government employees as part of their official duties are in the public\ndomain. The copyrights to materials written by other individuals or organizations are presumed to\nremain with them. If you think any of the information displayed in the PDF is subject to a valid\ncopyright claim, please contact the Gerald R. Ford Presidential Library.\nDigitized from Box 2 of the James M. Cannon Files at the Gerald R. Ford Presidential Library\nCLEARANCE SHEET\nDATE: 10-7-76\nYour Request\nJMC ACTION\nRequired by:\nSUBJECT:\nDraft--Aviation Noise\nSTAFF Policy RESPONSIBILIEY HOPE\nRECEIVED FROM:\nDATE RECEIVED:\nSTAFF COMMENTS:\nSee attached comments.\nQUERN/MOORE RECOMMENDATION:\nAPPROVE\nREVIEW & COMMENT\nJim, I that this decisions here.\nDISCUSS\nis a but serious are\nLet's Arl\nCANNON ACTION:\nDATE:\nMaterial Has Been:\nSigned and forwarded\nChanged and signed\nReturned per conversation\nLISRANT GERALD P. FORD\nNoted\nJIM CANNON\nComment:\nTHE WHITE HOUSE\nWASHINGTON\nOctober 7, 1976\nADMINISTRATIVELY CONFIDENTIAL\nMEMORANDUM FOR:\nJIM CANNON\nFROM:\nJUDITH RICHARDS HOPE\nSUBJECT:\nDraft--Aviation Noise Policy\nI have revised several pages in the draft speech on \"Quiet\nSkies.\" I have kept your original page numbers; my changes\nare indicated with underlining. I have also changed the\nspeech in a material respect: I have made the Coleman\nproposal an amendment to Aviation Regulatory Reform, not an\nalternative to it.\nJuly\nis not Prendant,\nThat The for.\nwhat or I, osked June\nFORD is LIBRARY 938870\n-7-\nJRH changes are underlined\nin this draft.\nConsequently, we have this situation:\nToo Much Noise:\nThe Federal Government FAA, by not moving on noise standards,\nhas shown a lack of decisiveness that must be changed.\nOutdated Regulations:\nThe CAB, by following policies and procedures that are\nimpractical and out of date, is clearly unable to assist\nthe airlines in providing the best and cheapest service to\nthe public.\nCongressional Inaction:\nThe Congress, by its failure to act on aviation regulatory\nreform, is continuing a critical economic problem for the\nairlines and all the people who work for airlines and depend\non them.\nAs President, I cannot tolerate inaction any longer. It is\nhigh time the Federal Government laid down a clear and\neffective plan to We-must end the noise pollution around\nAmerican airports and bring quiet skies back to America\nagain.\nI am proposing a number of actions\n-8-\nTe-de-this,-f-am-taking-the-fetlewing-aetiens\nFirst, I am today directing the Secretary of Transportation\nto instruct the Administrator of FAA to extend its noise\nregulations standards to all domestic U.S. commercial aircraft,\nso that within the next eight years, all such aircraft will\nbe at least 25% quieter. te-be-phased-in-ever-an-8-year-peried.\nI am also directing the Secretary of Transportation, the\nAdministrator of the Federal Aviation Administration, and the\nSecretary of State to begin negotiations immediately with\nrepresentatives of international aviation to solve the\ninternational noise problem.\nSecond, we must free aviation from arbitrary and unnecessary\nrestrictions and regulations SO that the airlines themselves\ncan solve the noise problem. pay-the-eest-of-noise-abatement.\nI am putting the Congress on notice that I will not accept\nits inaction. Congress must adopt the airline regulatory\nreform measure I proposed in 1975. Congress must act on this\nreform in the interest of the American public: passage will\nmean lower air fares and a stronger aviation industry which\nis more able to pay for new, quieter aircraft.\nI want the members to know now that aviation regulatory reform\nwill be on their doorstep when they come back in January.\n-8A-\nf-the-Cengress-dees-net-act-on Third, I will immediately\npropose to the next Congress an amendment to my aviation\nregulatory reform fer-the-airlines-within-60-days-after-the\nopens, must make certain legislation\nwhich will guarantee that the airlines can meet the new noise\nstandards and at the same time continue to be a healthy and\ncompetitive industry serving 200 million Americans. I will\nuse every effort to see that this Act, as amended is passed\nand signed by Therefore;-if-Cengress-fails-to-act-on-Aviatien\nRegulatory-Reform-by March 15, 5 1976. I shall send Congress\namended legislation that would will reduce the present Federal\ntax on domestic passenger fares from 8 percent to 6 percent,\nand reduce the present Federal tax on domestic freight from\n5 percent to 3 percent+-and.\nThird;-f-propose-that-the-present-Pederal-tar-on-domestie-\npassenger-fares-be-redueed-frem-8-pereent-to-6-pereent-and\nen-demestic-freight-be-redueed-from-5-pereent-te-3-pereent-\nThis tax on the consumer is now going to the Airport and\nAirway Trust Fund to provide Federal assistance to airport\nconstruction and improvement. There is now a surplus of\n$1.4 billion in this fund. Passengers-have-a-right-to-this\ntax-reduetion:\nYORD\nLIBRARY\n-9-\nHowever,-if-the-Cengress-dees-mot-aet-on-regufatory-reform-\nfer-the-airtines-within-60-days-after-the-new-sessien-opens;\nI shall have-ne-ehoiee-but-te propose the-reimposition-ef\nthat a temporary 2 percent as-an environmental surcharge on\npassenger fares and freight bills. The funds from the this\nsurcharge would-be-directed-inte-a-speeial will form a\nspecial environmental trust fund, administered by the\nSecretary of Transportation, to assist help the airlines\nin-finaneing-the-new-and make a downpayment on new quieter\nplanes that-are-necessary-for-the-abatement which will help\nsolve the problem of aircraft noise around our major airports.\nI-de-net-want-te-eall-for-this-envirenmenta1-sureharge-on\npassengers---Regulatory-reform-is-a-far-better-sotution-\nBut-if-Cengress-dees-net-aet-on-the-aviation-regulatery-reform\nI-prepesed-tast-Octeber;-there-has-to-be-another-atternative-\nThis proposal will mean that the aviation user, not the\ngeneral taxpayer, will pay the cost of solving the air noise\nproblem. It will mean jobs in our aircraft industry. It\nwill encourage and strengthen our aircraft industry, vital to\nour export markets and to our national defense.\nEven-then;-an-envirenmental-sureharge-would-be-a-temporary\nexpedient----net-a-permanent-solutien-te-the-real-problem\nfacing-the-airlines-and-other-ever-regutated-indastries-in-\nthis-country.\nSueh-a-sureharge-weuld This environmental fund will help\n-9A-\nend the noise problem. But it will not change the CAB's\noutdated methods of setting fares and controlling markets.\nIt will not improve an airline's ability to compete and\nprovide better service.\nFORD CIBRARY\n-10-\nThe lasting long-term solution is to give the free enterprise\nsystem its best chance to operate. That is why I am coupling\nlasting regulatory reform measures with limited funding for\nenvironmental purposes.\nThe genius of the American economic system throughout our\nhistory has been a partnership between government and free\nenterprise. The right role of the government in the American\neconomic system is to help private enterprise accomplish\nneeded objectives for the American people--and not to hinder\nprivate enterprise.\nOur national growth in 200 years has been phenomenal, and in\nno area of our lives has the partnership between government\nand private enterprise worked better than in transportation.\nIn the National Transportation Policy Statement of my\nAdministration of September 17, 1976, we said:\n\"Transportation has substantially shaped the growth\nand development of the United States. Waterways led\nour ancestors to new frontiers. Today, our energy-\nefficient inland waterways and merchant marine seek\nout new markets. Railroads\n-11-\nfed the hearths of an industrial revolution and\nnow have renewed significance in the era of environ-\nmental and energy consciousness. Highways made\nus the most mobile population on earth, profoundly\naltered our land use patterns, and established the\nautomobile, truck and bus as an important part of\nthe Nation's mobility and economic activity. Mass\ntransit provided the lifeline to city centers and\nnow offers hope for their revival. Civil aviation\nextended its reach around the globe and helped\ndesign the interdependent world in which we now\nlive. General aviation has greatly increased\nbusiness and pleasure mobility and opened up formerly\nunreachable territories. Pipelines are vital to\nenergy independence.\n\"To sustain and enhance our economic vitality\nand growth, the productivity of our commerce and\nthe quality of our leisure, we need a healthy and\nresponsive transportation system. National trans-\nportation policy must serve these broad goals of\nour society by helping to guide the development,\nfinancing and maintenance of a safe, efficient,\naccessible and diverse transportation system. Such\nFORD\nLIBRAR\n-12-\na system should meet the needs of all Americans --\nas passengers, consumers, employees, shippers and\ninvestors -- in a way that is consistent with other\nnational objectives. The values and priorities of\nour society are changing as the land on which we\nlive is changing, and transportation must blend\nwith other national goals in seeking heightened\nquality in the American way of life.\"\nWe have set our national goals for what is and what must\ncontinue to be the best airline system in the world. By\nworking together we can reach those goals: a strong,\nresponsive aviation system and quiet skies for America.\nThank you.\nTHE WHITE HOUSE\nWASHINGTON\nOctober 10, 1976\nMEMORANDUM FOR THE PRESIDENT\nFROM:\nJIM CANNON June\nSUBJECT:\nAviation Noise Proposal by Secretary Coleman\nIn response to your memorandum of October 4, here is a\nrevision of the speech on Aviation Noise (Tab A). The new\nsection spelling out Secretary Coleman's plan begins on\npage 8.\nIn brief, this new speech draft makes two major points:\n1. Presidential action to enforce aviation noise\nstandards, and\n2. Congress must enact Aviation Regulatory Reform,\nor the President will be forced to propose a 2%\nenvironmental surcharge to fund a DOT-administered\naircraft replacement program.\nSecretary Coleman, with whom I have again discussed his\nproposal, believes this approach would intensify the\nairlines' opposition to regulatory reform. In Coleman's\njudgment, the hope of a $3 billion aircraft replacement\nfund would provide the airlines with an additional incen-\ntive to make certain Regulatory Reform is defeated.\nSecretary Coleman would join the Aviation Regulatory Reform\nAct and noise abatement, and thereby create an omnibus air\nbill which would provide the airlines with an incentive to\nhelp pass the legislation.\nSecretary Coleman has drafted for your consideration a\nPresidential statement which would integrate regulatory\nreform and the 2% reduction in Federal taxes on passengers\nFORD\n2\nand freight (Tab B). He proposes a series of Presidential\nsteps (pages 4-9 of Tab B), which could be incorporated into\nyour speech or a supporting fact sheet. One change Coleman\nsuggests: He would not propose the DOT-administered fund\nnow, but would hold hearings to consider what financing\nassistance airlines need to meet noise standards.\nSecond Draft\n10/10/76\nQUIET SKIES\n(Appropriate Salutation)\nWe have assembled here at\nAirport\ntoday so that I could speak with you about two important\nand related national problems.\nAnd in the process I am going to discuss a real-\nlife case study of what is wrong with Washington - and\nwhat must be done about it.\nThe first of these two national problems is aircraft\nand airport noise - and I will today announce a plan to\nreduce the noise pollution around this and other major\nairports in the Nation.\nThe second problem is the need to ensure that the\n200 million Americans who fly every year have the finest\npossible airline service. I will today describe the\nmeasures necessary to make certain that the American\nconsumer will be served by a healthy and competitive\nsystem of commercial airlines.\nFORD LIBRARY\n-2-\nBoth of these problems and their resolution affect\nyour lives, your jobs, your environment, your property,\nyour future and your children's future, and the well-being\nand progress of the Nation.\nFor some 6 million Americans who live and work\naround 100 major airports in the U.S., the noise of jet\nplanes is a very real and personal environmental problem.\nI know, because I used to live near Washington National,\nand sometimes the noise was so bad you could not read a\nnewspaper, hear the T.V., or finish a conversation with\nthe children.\nFor these 6 million Americans the problem of noise\nis getting worse as air travel increases -- and we want\nair travel to increase.\nBut we must also end the noise problem.\nSince the 1960's, when the airlines introduced new\njet airplanes into the fleet, noise has been recognized\nas a major constraint to commercial aviation. Through\nresearch and development, by the government and by private\nindustry, we have learned how to make jet engines quieter,\nand more efficient in fuel use. The technology is ready.\n-3-\nWe have taken the first steps to reduce\nthe noise around airports. In 1969 the Federal Aviation\nAdministration, one of the two Federal agencies that\nregulate the commercial airlines - I know you are\naware that Congress feels the airlines are so important\nthat you need two Federal regulatory agencies to tell\nyou what to do -- in 1969 the FAA issued standards that\nwould cut in half the perceived noise of new jet aircrafts,\neffective at the start of 1975.\nFor the last two years, all commercial planes\ncoming off the assembly lines in the United States have\nmet these standards.\nBut the FAA did not act to correct the biggest\npart of the airport noise problem - some 1600 older jet\nairplanes, or about 77 percent of the U.S. commercial\nairlines fleet.\nThese planes are still flying; and if you live near\nthis or any other major airport in the United States,\nyou are still listening to them.\n-4-\nWhy, seven years after the FAA set aircraft noise\nstandards, are these noisy planes still flying?\nThe answer, very simply, is that FAA knew that\nsome of the airlines could not afford to pay for modifying\nor replacing their older planes to meet the new noise\nstandards.\nWhy not? One reason, frankly, is that some of the\nairlines have not been well-managed.\nBut another important reason airlines could not\nafford to pay for noise reduction is that the Civil\nAeronautics Board, the other Federal agency that regulates\nthe airlines, could not look ahead and provide the\nrevenues the airlines would need to pay for noise reduction.\nThe CAB is like that mythical bird which flew back-\nward and knew where it had been, but not where it was going.\nUnder their own regulations for setting airline fares,\nCAB looks backward at \"historic costs,\" but not ahead to\nrealistic future costs.\n-5-\nThe CAB was created almost 40 years ago to promote\nand assist a young and hopeful airline industry. There\nwere reasons then to allocate routes, set fares, and limit\ncompetition; at the beginning, the public need for good\nservice required extensive government involvement to assure\norderly growth of the airlines.\nIt is different now.\nWhen the CAB began in 1938, domestic airlines carried\na total of 1.3 million passengers, for 476 million passenger\nmiles.\nThis year, U.S. airlines will carry more than 200\nmillion passengers, for 128 billion passengers miles --- a\ngrowth of 26,800 percent. Airlines now carry more people\nbetween cities than any other form of public transportation.\nThe airline industry is no longer an infant; it is\nmature, big and fully capable of prospering in a free,\nopen and competitive market.\nIt was for this reason that on October 8, 1975, I\nproposed to the Congress the Aviation Act of 1975, which\n-6-\nwould have reduced economic controls, opened markets,\nreduced fares and made it possible for all airlines\nto better serve the American consumer.\nMy objective was to work with the Congress to\nensure that the U.S. will have the most efficient airline\nsystem in the world, providing the American public with\nthe best possible service at the lowest possible cost.\nThat was 11 months ago; but neither the House nor\nthe Senate has acted on this important legislation, which\nis the first comprehensive updating of airline regulation\nin almost forty years. Nor has Congress proposed any\nalternative.\nHowever, the blame does not all rest on Congress.\nSome airline executives, and their Washington lobbyists,\nhave short-sightedly opposed this change. While they say\npublicly they are for free enterprise and open competition,\nthey have privately lobbied against open competition, against\nthe American consumer, and in fact against greater opportunity\nfor the growth and prosperity of their airlines.\n-7-\nConsequently, we have this situation:\nToo Much Noise:\nThe FAA has permitted noisy aircraft because many\nairlines could not afford to replace or refit these\nolder planes.\nOutdated Regulations:\nThe CAB, by following policies and procedures that\nare impractical and out of date, is clearly unable to\nassist the airlines in providing the best and cheapest\nservice to the public.\nCongressional Inaction:\nThe Congress, by its failure to act on aviation regu-\nlatory reform, is continuing a critical economic\nproblem for the airlines and all the people who work\nfor airlines and depend on them.\nAs President, I cannot tolerate inaction any longer.\nWe must end the noise pollution around American airports\nand bring quiet skies back to America again.\nWe must free aviation from arbitrary and unnecessary\nrestrictions and regulations so that the airlines themselves\ncan pay the cost of noise abatement.\n8\nTo do this, I am taking the following actions:\nFirst, I am today directing the Secretary of Transportation\nto instruct the Administrator of FAA to extend its noise\nstandards to all domestic U.S. commercial aircraft, to be\nphased in over an 8-year period. I am also directing the\nSecretary of State to initiate negotiations with the Inter-\nnational Civil Aviation Organization and the European Aviation\nConference to reach agreement on noise standards for all\ninternational aircraft flying into the United States.\nSecond, I am putting the Congress on notice that I will not\naccept its inaction. Congress must adopt the airline regu-\nlatory reform measure I proposed in 1975. Congress must act\non this reform in the interest of the American public:\npassage will mean lower air fares and a stronger aviation\nindustry which is more able to pay for new, quieter aircraft.\nI want the members to know now that aviation regulatory reform\nwill be on their doorstep when they come back in January.\n-9-\nIf the Congress does not act on regulatory reform\nfor the airlines within 60 days after the new session\nopens, then I must act. We will make certain that U.S.\nairlines can meet noise standards and at the same time\ncontinue to be a healthy and competitive industry serving\n200 million Americans.\nTherefore, if Congress fails to act on aviation\nregulatory reform by March 5, 1976, I shall send Congress\nlegislation to:\n--- Reduce the present Federal tax on domestic\npassenger fares from 8 percent to 6 percent;\n-- Reduce the present Federal tax on Domestic\nfreight from 5 percent to 3 percent; and\n- Impose a 2 percent environmental surcharge on all\npassenger fares and freight waybills.\nThe funds from this surcharge would be directed into\na Quiet Skies Trust Fund, administered by the Secretary of\nTransportation, to assist the airlines in financing the\nnew and quieter planes which will help solve the problem\nof aircraft noise around our major airports.\n9a\nI do not want to call for this environmental surcharge\non passengers. Regulatory reform is a far better solution.\nBut if Congress does not act on the aviation regulatory\nreform I proposed last October, there has to be another\nalternative. But one way or the other, we must make it\npossible for the commercial airlines to replace their oldest\nand noisiest airplanes.\nOne way or the other, we must have the aviation user,\nnot the general taxpayer, pay the cost of solving the air\nnoise problem.\nSolving the airport noise problem is an environmental\nimperative. And in solving this problem, we will bring into\nservice a fleet of quiet, new airplanes that will conserve\nfuel and lower operating costs and fares. Replacing the\nolder planes will also strengthen our aircraft industry which\nis vital to our world leadership in economic trade and to\nour national defense. And building these new planes will\ncreate 240,000 ueseful, productive jobs for Americans.\n10\nThe best way we can make sure that Americans will con-\ntinue to have the finest airline service in the world is to\ngive the free enterprise system its best chance to operate.\nThe genius of the American economic system throughout\nour history has been a partnership between government and\nfree enterprise. The right role of the government in the\nAmerican economic system is to help private enterprise\naccomplish needed objectives for the American people --\nand not to hinder private enterprise.\nOur national growth in 200 years has been phenomenal,\nand in no area of our lives has the partnership between\ngovernment and private enterprise worked better than in\ntransportation.\nIn the National Transportation Policy Statement of\nmy Administration of September 17, 1975, we said:\n\"Transportation has substantially shaped the\ngrowth and development of the United States.\nWaterways led our ancestors to new frontiers.\nToday, our energy-efficient inland waterways and\nmerchant marine seek out new markets. Railroads\n-11-\nfed the hearths of an industrial revolution and\nnow have renewed significance in the era of environ-\nmental and energy consciousness. Highways made\nus the most mobile population on earth, profoundly\naltered our land use patterns, and established the\nautomobile, truck and bus as an important part of\nthe Nation's mobility and economic activity. Mass\ntransit provided the lifeline to city centers and\nnow offers hope for their revival. Civil aviation\nextended its reach around the globe and helped\ndesign the interdependent world in which we now\nlive. General aviation has greatly increased\nbusiness and pleasure mobility and opened up formerly\nunreachable territories. Pipelines are vital to\nenergy independence.\n\"To sustain and enhance our economic vitality\nand growth, the productivity of our commerce and\nthe quality of our leisure, we need a healthy and\nresponsive transportation system. National trans-\nportation policy must serve these broad goals of\nour society by helping to guide the development,\nfinancing and maintenance of a safe, efficient,\naccessible and diverse transportation system. Such\n-12-\na system should meet the needs of all Americans --\nas passengers, consumers, employees, shippers and\ninvestors -- in a way that is consistent with\nother national objectives. The values and priorities\nof our society are changing as the land on which\nwe live is changing, and transportation must blend\nwith other national goals in seeking heightened\nquality in the American way of life.\"\nWe have set our national goals for what is and what\nmust continue to be the best airline system in the world.\nBy working together we can reach those goals.\nThank you.\nB\nof\nTHE SECRETARY OF TRANSPORTATION\nWASHINGTON, D.C. 20590\nUNITED STATES OF AMERICA\n1976 OCT 10 AM 8 02\nMEMORANDUM FOR JAMES A. CANNON\nThe White House\nSubject: Aircraft Noise\nEnclosed is a draft statement for the President on aircraft\nnoise. I have written this statement in a form that would be\nappropriate for release by the White House, although I recognize\nthat any statement the President might make personally would\nprobably be shorter. Although I would be delighted to draft some\npersonal remarks, I suspect this is a task better left to the\nWhite House staff. I recommend, however, that the enclosed\nstatement be released by the President simultaneously with any\nspeech or remarks which he might make on the subject in the\nnear future.\nThere are some very sensitive nuances in the enclosed statement that\nare designed to protect the Administration's position in pending\nlitigation, in response to certain commitments made to the Congress,\nand in attempting to achieve the broadest range of support for a\nPresidential noise policy statement--support by environmentalists\nand the aviation industry.\nBu\nWilliam T. Coleman, Jr.\nEnclosure\nLIBRARY\nSTATEMENT OF THE PRESIDENT\nON AIRCRAFT NOISE\nAircraft noise around airports is a substantial annoyance for\nsix to seven million Americans. The problem is particularly serious\nat some of the major airports, such as those in New York, Los\nAngeles, Boston, Atlanta and Chicago. In fact, it represents a\nsignificant or potential problem for residents living near many other\nairports across the nation, and as air travel increases, noise will\nbecome a serious problem at some of these other airports as well.\nCities like San Jose, San Francisco, Miami, Denver, San Diego, Seattle\nand Phoenix are under increasing public pressure to take steps to\nreduce aircraft noise. In fact, the Federal Aviation Administration\nhas identified 100 airports where noise is a problem.\nCitizen complaints, law suits for noise damages and proposed\nrestrictions on airport use have begun to threaten the efficiency and\nviability of the interstate air transportation system.\nDuring the past six weeks I have reviewed extensively the aircraft\nnoise problem. I have considered the recommendations of Secretary\nof Transportation William T. Coleman, Jr., Federal Aviation\nAdministrator John L. McLucas, EPA Administrator Russell E. Train\nand many other federal, state and local officials concerned with the\neffect of aircraft noise on people in areas surrounding our major airports.\n2\nI have become acutely aware of the seriousness of this problem\nand have reached the following conclusions:\n1. The aggravation and annoyance of aircraft noise are a\nnationwide problem that can be addressed only by the joint efforts\nof government, airport operators and industry, working together\ncooperatively. If each of us performs the responsibilities\nfor which we are uniquely suited under a comprehensive policy to\nreduce aircraft noise, we can and will achieve measured progress\nin improving the quality of life for airport neighbors.\n2. We have the technological capability to bring about\nsignificant reductions in aircraft noise emissions. Our major\nconstraint has been the economic condition of the carriers which\nhas prevented the rapid introduction of quieter technology and\nthe development of new airplanes that will provide even greater\nnoise reduction benefits. Because of this economic problem,\n77 percent of the civil aviation fleet operating today does not\nmeet the present federal noise standard for new subsonic\naircraft. This is intolerable. We must take action not only to\nquiet or retire the noisy aircraft but also to accelerate their\nreplacement with new quieter technologies that will bring\n3\nadditional benefits in noise reduction, fuel efficiency and new\ntechnology. To be effective, this action requires that we also\naddress the issue of how the results which are now possible\ntechnologically may be financed.\n3. In considering the serious and complex problem of aircraft\nnoise, I am aware of many interrelated problems that must be\naddressed simultaneously. These problems include:\n- - the financial and regulatory constraints on the ability of our\nair carriers to purchase new, quieter airplanes;\n- - the inadequate utilization of technological and employment\ncapability in the aeronautical manufacturing industry;\n- - the lost potential for substantial energy conservation improve-\nments by the delayed introduction of new more fuel efficient\naircraft;\n- - the importance to the national interest of maintaining U.S.\nleadership in providing aeronautical products for the rest\nof the world in light of increasing European competition;\nand\n- - the need to reduce aircraft noise levels so as to minimize\nthe necessity for airport operators to impose curfews and\n4\nother restrictions on the use of airports that interfere\nwith the efficiency of interstate travel.\nIn reviewing these problems, I have considered the recommendations\nof members of my Cabinet and staff, and I have directed that the\nfollowing action be taken:\n1. Within ten days the Secretary of Transportation will publish\na comprehensive aviation noise policy. That policy will set\nforth why the solution to the noise problem in this country must\nbe a joint effort by federal, state and local governments, airport\noperators, air carriers and aircraft manufacturers. It will\ninclude a statement of the responsibilities of each and a specific\nplan and timetable for federal action that will ensure that the\nfederal government meets its statutory obligations to reduce noise\nby promulgating regulations that have been delayed too long.\n2. I am directing the Federal Aviation Administrator, in\nconsultation with the Secretary of Transportation, to promulgate\nwithin two weeks a regulation that will require domestic commercial\naircraft to meet present federal noise standards in accordance\nwith a phased-in time schedule, not to exceed eight years. I am\n5\nfurther directing the Federal Aviation Administrator, in\nconsultation with the Secretary of Transportation, to promulgate\nby the end of this year a new federal noise regulation that will\nestablish new, tougher standards for new subsonic technology\naircraft.\n3. I have directed the Secretary of State to initiate negotiations\nwith the International Civil Aviation Organization and the European\nCivil Aviation Conference to bring about international agreement\non noise standards for all international aircraft operations into\nthe U.S. If agreement is not reached within four years, we will\nbegin to apply U.S. standards to foreign aircraft unilaterally.\n4. I have directed the Secretary of Transportation to provide\nspecial financial and technical assistance to airport operators\nto help them develop comprehensive noise abatement plans, to\nassist them in the acquisition of buffer land and purchase of\nnoise suppressant equipment, and to assure that the land around\nairports is zoned and developed in ways that are compatible\nwith airport operations.\n5. I will ask the Congress to reduce by 2 percentage points\nthe domestic ticket and freight waybill taxes, thereby releasing\n6\nthe excess tax revenues that are presently unused by the Airport\nDevelopment Aid Program and enabling the air carriers to pay\nthe costs of meeting these new environmental standards without\nincreasing the cost of air travel to the consumer. My tax\nreduction proposal will be included in a revised Aviation Reform\nAct that I will submit to Congress before the start of the next\nsession. Thus, the Administration's continued support for this\ntax reduction will be conditioned on Congressional acceptance\nof aviation regulatory reform.\n6. I have directed the Secretary of Transportation to consider\nin an open public hearing what financing provisions are necessary\nto ensure that the air carriers can meet the noise requirements.\nThe Secretary will consider what sort of special financing provisions\nshould be established in addition to the reduction of the ticket tax\nI have proposed (whether, for example, a special surcharge of 2%\nshould be imposed to provide revenues that could be used to help\nsecure necessary financing for the replacement of the noisy\naircraft and, if so, how such revenues should be dispersed).\nIn formulating a financing proposal, the Secretary shall consult\nwith consumers, representatives of industry and other concerned\n7\nparties, and shape his proposal to meet the following criteria:\n- - financing measures should be available to assure that noise\nregulations meet the statutory test of \"economic reasonable-\nness;\"\n- - financing should be consistent with and help advance the\ncause of aviation regulatory reform;\n- - the cost of environmental improvements should be met by\nthe user, not the general public;\n- - any special financing provisions should involve minimum\ngovernment interference with investment decisions in the\nprivate sector and should be equitable among the carriers;\n- - the cost of air travel to the consumer should not be increased\nas a result of the program.\n7. This proposal will make possible the replacement of most of\nthe 500 oldest, noisiest four-engine jets still in commercial\noperation. It will enable further the quieting, and in some cases\nreplacement, of most of the approximately 1,000 newer, less\nnoisy jets that do meet federal standards.\n8. Before the next session of Congress begins, I will submit\nto the Congress a revised Aviation Reform Act that will provide--\n8\nin addition to the removal of unnecessary regulatory constraints\non pricing, entry and routes- - a provision that will make possible\nthe generation of sufficient private sector financing to meet the\nfederal noise requirements and achieve other important national\nbenefits, including:\n- - reduction of the number of Americans exposed to serious\naircraft noise impacts by about 1 million;\n- - reduction of the annoyance, inconvenience, discomfort, and\nmental distress caused by aircraft noise for all who live or\nwork near airports;\n- - the creation of 240 thousand new jobs in the aerospace industry;\n- - the production of new generation of U.S. manufactured\nairplanes--presently stalled at the design stage--offering\nthe advantages of new design and safety technology, and\nenabling U.S. manufacturers to respond to the projected\nworldwide demand for a new generation of airplanes in\n1978-84;\n- - substantial energy savings by improvements up to 30% in\nfuel efficiency, the more rapid introduction of the quietest\nengines now technologically possible--engines less than\nhalf as loud as the noisy jets they would replace;\n9\n- - better air service to the American traveler with lower\noperating costs and prices in airplanes designed to service\nmany markets more economically.\nA nationwide effort to reduce aircraft noise represents a commit-\nment to a better quality of life for millions of Americans. We will\nreplace the chaos, confusion and conflict that has all too often\ncharacterized the noise reduction effort thus far with firm federal\nleadership and close cooperation with the airport operators, the carriers\nand the people adversely affected by aircraft noise. Through our\ncontinuing efforts to develop quieter aircraft, by our requirement that\nnoisier aircraft be quieted or replaced, and with our financial and\ntechnical assistance to airport operators, we will bring about a sub-\nstantial reduction in the impact of aircraft noise on our fellow citizens,\nand at the same time create new jobs and improve the efficiency and\ncompetitive position of our air carriers and aerospace manufacturers.\nTHE WHITE HOUSE\nREQUEST\nWASHINGTON\nOctober 10, 1976\nADMINISTRATIVELY CONFIDENTIAL\nMEMORANDUM FOR:\nJIM CANNON\nFROM:\nJUDITH RICHARDS HOPE Ru\nSUBJECT:\nRevisions to Quiet Skies Speech\nPursuant to Your Request\nI attach for your consideration, revisions to pages 8 and 9\nof the draft Presidential speech on Aviation Noise policy. I\nhave revised these pages in accordance with your instructions.\nI personally remain convinced that: (1) the Federal Aviation\nAdministration should not be chastized for failing to act in\nthis area (page 7), particularly since it is well known that\nthis matter has been at the White House since June; (2)\nPresenting the Aviation industry with a $3.5 billion dollar\nbonus if they can prevent enactment of Aviation regulatory\nreform for 60 days after the new Congress begins virtually\nguarantees postponement or death for the President's Aviation\nAct of 1975. (3) From the technical legal point of view,\nSecretary Coleman's draft protects the Federal government\nagainst suits for damages for aviation noise, the so-called\n\"pre-emption\" issue.\nTHE WHITE HOUSE\nWASHINGTON\nOctober 10, 1976\nMEMORANDUM FOR THE PRESIDENT\nFROM:\nJIM CANNON\nSUBJECT:\nAviation Noise Proposal by Secretary Coleman\nIn response to your memorandum of October 4, here is a\nrevision of the speech on Aviation Noise (Tab A). The new\nsection spelling out Secretary Coleman's plan begins on\npage 8.\nIn brief, this new speech draft makes two major points:\n1. Presidential action to enforce aviation noise\nstandards, and\n2. Congress must enact Aviation Regulatory Reform,\nor the President will be forced to propose a 2%\nenvironmental surcharge to fund a DOT-administered\naircraft replacement program.\nSecretary Coleman, with whom I have again discussed his\nproposal, believes this approach would intensify the\nairlines' opposition to regulatory reform. In Coleman's\njudgment, the hope of a $3 billion aircraft replacement\nfund would provide the airlines with an additional incen-\ntive to make certain Regulatory Reform is defeated.\nSecretary Coleman would join the Aviation Regulatory Reform\nAct and noise abatement, and thereby create an omnibus air\nbill which would provide the airlines with an incentive to\nhelp pass the legislation.\nSecretary Coleman has drafted for your consideration a\nPresidential statement which would integrate regulatory\nreform and the 2% reduction in Federal taxes on passengers\n2\nand freight (Tab B). He proposes a series of Presidential\nsteps (pages 4-9 of Tab B), which could be incorporated into\nyour speech or a supporting fact sheet. One change Coleman\nsuggests: He would not propose the DOT-administered fund\nnow, but would hold hearings to consider what financing\nassistance airlines need to meet noise standards.\n10/19/76\nPossible Presidential Actions\n1. Direct Secretary Coleman to instruct FAA to extend\nnoise standards to all domestic commercial aircraft\n2. Put Congress on notice that it must adopt airline\nregulatory reform early in the next session.\n3. If Congress does not act on regulatory reform, then\nthe President will send legislation to:\n--- reduce federal tax by 2%\n-- impose a 2% environmental surcharge, with the money\ngoing into a trust fund to assist the airlines in\nfinancing the new planes that meet noise standards.\n1. The President wants to extend noise standards as of\nJanuary 1, 1977, phased in over 8 years.\n2. The President wants to give Congress a 90-day deadline.\n3. The President wants to direct Secretary Coleman to hold\nhearings on how the airlines may finance the retrofitting\nor replacement of these 1550 planes.\nThere is to be no mention of federal fare tax reduction\nat this time.\nWhether it can be accomplished when Congress passes\nregulatory reform or whether they would need additional\nassistance, Congress is to report to the President within\n60 days after its returns so that he can be in a position\nto make recommendations on financing the retrofit or\nreplacement of aircraft.\nThe President also wants a strong mention of jobs in the\nspeech.\nmtq wl President\nAircraft Noise\n10/19/76\nPossible Presidential Actions\nI.\nDirect Secretary Coleman to instruct FAA to extend\nnoise standards to all domestic commercial aircraft.\nII. Put Congress on notice that it must adopt airline\nregulatory reform early in the next session.\nIII. If Congress does not act on regulatory reform, then\nthe President will send legislation to:\n- reduce federal tax by 2%\n-- impose a 2% environmental surcharge, with the\nmoney going into a trust fund to assist the\nairlines in financing the new planes that meet\nnoise standards.\n10/19/76\nPossible Presidential Actions\n1. Direct Secretary Coleman to instruct FAA to extend\nnoise standards to all domestic commercial aircraft\n2. Put Congress on notice that it must adopt airline\nregulatory reform early in the next session.\n3. If Congress does not act on regulatory reform, then\nthe President will send legislation to:\n-- reduce federal tax by 2%\n-- impose a 2% environmental surcharge, with the money\ngoing into a trust fund to assist the airlines in\nfinancing the new planes that meet noise standards.\n1. The President wants to extend noise standards as of\nJanuary 1, 1977, phased in over 8 years.\n2. The President wants to give Congress a 90-day deadline.\n3. The President wants to direct Secretary Coleman to hold\nhearings on how the airlines may finance the retrofitting\nor replacement of these 1550 planes.\nThere is to be no mention of federal fare tax reduction\nat this time.\nWhether it can be accomplished when Congress passes\nregulatory reform or whether they would need additional\nColemn\nassistance, Congress is to report to the President within\n60 days after its returns so that he can be in a position\nto make recommendations on financing the retrofit or\nreplacement of aircraft.\nThe President also wants a strong mention of jobs in the\nspeech.\nCongrus .\nFORD LIBRARY\nDec\n1\nHearn on A/L Byn\nJan I\n-\nDesdatem 8 ut that\ngran 5 Cansum\nZPF waye TOOUS Column ou rpe of - LOCLOITE Jopa to P THE or\n80 qu'u VEFOR TTD LOCALVO BO yo CVU pe TM S hourcrob\nprotection' LOIOLE on TO FO 7m ATEPTO\nspecific If cwn pe apeu coudress beneen\nWE FPT#\nspore TO co po DO wourron of [egetry [VIC CVX sequestou\n$/5 3\" ave postinde STORTON - ou Coupon cyese 1220 Condrews byswes* our Becrep ETUBUGO dewore . 30-qui gye\nT' TOJA' bpw20q TO DAGE 9 Lover\n1\"\n1316 asses FO expens NOTES www.wqui.go se of\nETUDUCTED cpo UGA byeuse FORE weep DOTES\nдотий ruco or FLITED Ling to WARTHS are STETTUGS TO\n-- rubone 5 30 stry cue movel\n-- Legace [09019] FWX pk 3#\neye ACTI usarg FOT\n3\" It CONDLESS qoes not gop ou reform' cysu\nLOCOLE worrd TO cye boxe\n3\" DUE Coudress ou FRIE TF sqobp WILLING\nHOTSE to VII gomensto COMMISSION\nT' Dyrect to PURCKNOF EVV eg expend\nyorrown\nfile\nTHE WHITE HOUSE\nWASHINGTON\nOctober 19, 1976\n1976 OCT 19 PM 7 43\nMEMORANDUM FOR:\nJIM CANNON\nFROM:\nJUDITH RICHARDS HOPE\nSUBJECT:\nAviation Noise\nAviation Daily of October 18, 1976, reprints in their\nentirety, the President's remarks on noise, made in Los\nAngeles County two weeks ago.\nCC:\nArt Quern\nPaul Leach\nFORD i LIBRARY 07V839\n101919"
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