May 26, 2009
What’s at Issue
The U.S. House of Representatives has passed a three-year bill to reauthorize the Federal Aviation Administration (FAA).
Why It’s Important
Legislation to reauthorize the FAA is considered in Congress every four or five years, and includes both funding and contract authority for the FAA. H.R. 915, the FAA Reauthorization Act of 2009, enables the FAA to issue grants for airport improvement projects and other capacity expansion initiatives.
Major Provisions
H.R. 915 passed the U.S. House of Representatives by a vote of 277-196, with 132 Republicans opposing the legislation due to concern about the economic effects of the bill. House Committee on Transportation and Infrastructure Ranking Member John Mica (R-FL) and Aviation Subcommittee Ranking Member Thomas Petri (R-WI) spoke against the bill on the floor and voted against final passage due to areas of the bill with which they disagreed. Specifically, both Mica and Petri stated they opposed the bill because it (1) would send the labor dispute between FAA and the air traffic controllers union into binding arbitration; (2) requires direct FAA inspection of foreign repair station facilities; (3) sets an expiration date on existing antitrust immunity granted to airlines with code sharing agreements; and (4) amends the Railway Labor Act to make it easier for unions to organize groundside workers at Federal Express.
To view the Roll Call vote on H.R. 915, please click here.
The following provisions are the major highlights of H.R. 915:
- Authorizations: $53.5 billion is authorized for the FAA’s capital programs from FY10 through FY12.
- $12.3 billion for the Airport Improvement Program;
- $10.1 billion for FAA Facilities & Equipment;
- $30.3 billion for FAA Operations; and
- $794 million for Research, Engineering, and Development.
- Aviation Safety: U.S. inspectors are required to conduct more checks of overseas aircraft repair stations in an attempt to address safety concerns as major airlines send more maintenance work out of the country. The European Commission has threatened to pull out of an aviation safety deal over the requirement. The bill:
- Requires the FAA to certify that all Part 145 certificated foreign repair stations are inspected by FAA inspectors at least twice a year. The legislation would also require the FAA to certify that foreign repair stations adhere to drug and alcohol testing standards comparable to those in place for domestic Part 145 repair stations.
- Requires additional hiring of aviation safety inspectors in the FAA’s Flight Standards Division.
- Grants authority to the FAA and airmen to seek judicial review of National Transportation Safety Board decisions involving orders of suspension, revocation, and civil penalties against airmen.
- User Fee and Increase in Fuel Taxes:
- The FAA’s user fee proposal submitted to Congress earlier this year is rejected.
- The fuel tax on aviation jet fuel is raised from 21.9 cents per gallon (CPG) to 35.9 CPG and the tax on aviation gasoline from 19.3 CPG to 24.1 CPG.
- Safety Management Systems: The FAA may use funds “to advance the development and implementation of safety management systems” — a top NATA legislative priority.
- Registration Fees: Registration fees for aircraft and airmen are increased:
- $130 to register an aircraft;
- $45 for replacing an aircraft registration;
- $130 for issuing an original dealer’s aircraft certificate;
- $105 for issuing an aircraft certificate (other than an original dealer’s certificate);
- $80 for issuing a special registration number;
- $130 for recording a security interest in an aircraft or aircraft part;
- $50 for issuing an airman certificate;
- $25 to replace an airman certificate;
- $42 for issuing an airman medical certificate; and
- $100 for providing a legal opinion pertaining to aircraft registration or recordation.
- Passenger Facility Charges (PFC):
- The cap on PFCs is increased from $4.50 to $7.00. The bill does not include language proposed by the FAA offering airports greater flexibility in the use of PFCs. The bill does, however, include a pilot program for the use of PFCs for intermodal projects, and also includes a study regarding the impact of PFCs for passengers using connecting terminals, who often pay a PFC at an airport but do not benefit from the funding project (i.e. a parking garage). Large hub airports charging a PFC higher than $4.50 will lose 100 percent of their Airport Improvement Program (AIP) entitlement.
- Teterboro Airport:
- Support for the installation of at least one required navigation performance (RNP) approach at Teterboro Airport (TEB) is included in report language — a legislative priority of NATA and the Teterboro Airport Working Group.
- Support for Private Businesses under Small Community Program: The Committee Report accompanying H.R. 915 expresses support for enhanced oversight of the Small Community Air Service Development program, and encourages the U.S. Department of Transportation to consider the impact a grant under the program would have on existing businesses at the airport.
- Air Defense Identification Zone (ADIZ):
- The FAA and the Department of Homeland Security are required, within 90 days, to submit to Congress a reorganized plan for the ADIZ that will decrease operational impacts and improve general aviation access to the Washington, DC area.
- Air Traffic Controller Dispute:
- The FAA and the National Air Traffic Controllers Association (NATCA) are directed to resume negotiations on a collective bargaining agreement imposed on the union by the FAA in 2006. The bill amends the rules for further negotiations, prohibiting the FAA from unilaterally imposing an agreement (after notification to Congress) and instead sends future disputes to both federal mediation and arbitration.
- Federal Express Unionization:
- The Railway Labor Act is amended to allow Federal Express truck and other employees to unionize.
NATA Position
Overall, NATA is pleased with H.R. 915, including the increased funding for both the FAA and the AIP. NATA is strongly supportive of the authorization language regarding the development of safety management systems, which will give the FAA greater flexibility in working with the industry to implement this critical concept. The association is grateful that the Committee on Transportation and Infrastructure recognizes that increased aviation funding does not need to come from a complex system of user fees. The tax adjustments for general aviation are reasonable, with slight increases over inflation. The taxes will enable general aviation to contribute more into the Airport and Airway Trust Fund without placing a burdensome user fee system on the industry.
NATA is also appreciative that the Committee on Transportation and Infrastructure has included language supporting private businesses facing competition from airport authorities through the Small Community Air Service Development (SCASD) program. The report language sends a clear signal to the Department of Transportation to take a comprehensive look at the impact a potential SCASD grant could have on existing businesses at an airport. The association is pleased to see the inclusion of language supporting RNP approaches at Teterboro Airport, which would alleviate a great deal of concern among local residents while also significantly improving safety at the airport.
NATA remains concerned with the requirement of increased inspections on foreign repair stations due to the potential job loss to U.S. repair stations if the European Union retaliates against the trade agreement with the U.S.
Status
The U.S. Senate is currently working on its version of FAA reauthorization legislation, which could be introduced in the Senate in June. Beyond the bill’s introduction, it remains unclear when the Senate would consider the legislation.
NATA will work with the U.S. Senate Committee on Commerce, Science and Transportation and the Senate Committee on Finance on provisions important to its members that were not included in H.R. 915. Such provisions include repeal of the fuel fraud provision, which has long been a top legislative priority of the association, as well as the omission of any user fee proposal.
Staff Contact: Kristen Moore
Director, Legislative Affairs
kmoore@nata.aero