RL33920
Federal Aviation Administration Reauthorization: An Overview of Selected Provisions in Proposed Legislation
May 09, 2008

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Summary:

Funding authorization for aviation programs set forth in Vision 100 -- Century of Aviation Reauthorization Act (P.L. 108-176) and authorization for taxes and fees that provide revenue for the aviation trust fund expired at the end of FY2007. Revenue collections and the operation of the FAA and its programs have continued, however, as a result of continuing and consolidated appropriations legislation (P.L. 110-92, P.L. 110-116, and P.L. 110-161). The program has now been extended until June 30, 2008, by the Airport and Airway Extension Act of 2008 (P.L. 110-190). Consideration of FAA reauthorization in the 110th Congress began with the introduction of the FAA's reauthorization proposal, entitled the Next Generation Air Transportation System Financing Reform Act of 2007 (H.R. 1356/S. 1076, introduced by request), which recommends a new system for financing aviation system costs through direct user fees and increased fuel taxes. The FAA proposal would also allow airports to increase passenger facility charges (PFC), and includes initiatives to simplify the apportionment of airport grants. The proposal also seeks to better integrate development of the Next Generation Air Transportation System (NGATS) into ongoing planning and acquisition activities, and would allow airport and private investment in certain aviation facilities and services. The FAA proposal would authorize funding for research on aviation noise, air emissions, and water quality impacts, and seeks to modify the Essential Air Service Program (EAS). The Aviation Investment and Modernization Act of 2007 (S. 1300; S.Rept. 110144) proposes a four-year authorization with modest overall budget increases and larger increases specifically for facilities and equipment (F&E) modernization. S. 1300 proposes a $25 surcharge for certain flights and retention of existing taxes and fees as an alternative to the FAA's user fee proposal. S. 1300 would establish a modernization oversight board with powers over budgets and modernization plans. The bill would also set up offices at each federal agency supporting NGATS for defining agency resources and budgetary commitments to air traffic modernization. The bill also includes provisions regarding system capacity and safety and environmental issues. S. 2345, introduced by the Senate Finance Committee, may be considered as the revenue title of the overall bill, and modifies some aviation taxes and fees as a possible alternative to the $25 surcharge proposal. The FAA Reauthorization Act of 2007 (H.R. 2881) seeks higher spending authorizations for F&E compared to S. 1300. While the bill does not propose any direct user-fee mechanisms, it would allow airports to increase PFCs. The bill does, however, propose modest increases to existing aviation fuel taxes. The overall legislation also seeks to increase accountability and coordination of NGATS planning and implementation. An amendment agreed to would create a binding arbitration process to resolve labor negotiations impasses, and would apply this process to settle the current impasse between the FAA and air traffic controllers. The bill also addresses many safety-related and environmental issues. This report will be updated as needed.