Airport Alert: Build Back Better Reconciliation Bill Clears the House
November 19, 2021
House Democrats were able to garner the necessary support to finally pass the $1.7 trillion Build Back Better (BBB) Act by a vote of 220-213. The bill now goes to the Senate where it faces a dubious path forward.
After the House passed the bipartisan infrastructure bill earlier this month, House Democratic leadership immediately turned to the second major piece of their legislative agenda —the BBB reconciliation package, filled with various Democratic priorities related to tackling climate change and expanding childcare funding. However, the process has been stalled to accommodate demands from moderates to wait until the Congressional Budget Office (CBO) provided a full "score" to validate the overall spending levels and ensure that revenues were sufficient to pay for the cost of the bill. On Thursday evening, CBO came back with their complete assessment of BBB, and despite estimating that the bill would add $367 billion to the deficit o, this was enough to unlock moderate support to pass the bill.
For airports, BBB includes key provisions on sustainable aviation fuels (SAF). For instance, the legislation would enact a SAF blender's tax credit from January 2023 through December 2026, with a transition to a Clean Fuel Production Credit beginning in 2027. The text also includes around $300 million for the Low Emission Aviation Technology grant program for projects that produce, transport, blend, or store SAF.
Additionally, BBB doles out $1 billion for Zero Emissions Vehicle (EV) Infrastructure grants administered by the Department of Energy (DOE); however, the grant program has now been redesigned to focus exclusively on building out publicly accessible equipment in rural and disadvantaged/underserved communities. Similar to the bipartisan infrastructure bill's $2.5 billion charging and fueling infrastructure competitive grant program administered by DOT, the degree to which airports will be eligible for these EV grants will be better understood when the administration provides guidance on implementation.
As the reconciliation package now heads to the Senate, Senate Majority Leader Chuck Schumer (D-NY) has committed to passing it by the end of the year; whether this is possible, though, remains to be seen. Already, the Senate has a jammed pack to-do list of competing priorities, ranging from government funding and the debt ceiling to the National Defense Authorization Act (NDAA), all of which will require significant floor time to finish. Additionally, to pass the reconciliation package, Schumer will need the entire Democratic caucus to be on board, which he currently does not have. Senators Joe Manchin (D-WV) and Kyrsten Sinema (D-AZ), whose demands throughout negotiations have already cut the reconciliation bill in half, still have not committed to moving forward on BBB. This is, in part, due to a number of outstanding issues still under consideration, including paid family leave and state and local tax deductions that Democrats have yet to come to a consensus on.
Even if Senate Democrats do come to an agreement, the legislation will almost certainly be amended in order to comply with Senate reconciliation rules. Republicans will likely raise points of orders against provisions that violate the so-called "Byrd Rule," which prohibits the Senate from considering extraneous items as part of the budget reconciliation process. There will also be a lengthy amendment process where Republicans will try and force tough votes for swing state Democrats up for reelection in 2022. In the end, the House will presumably have to vote again on the Senate's amended bill before it can become law.
All of this to say, the annual, end of the year scamper that Congress routinely goes through will be on full display after Thanksgiving, with the Senate likely working weekends, and potentially into the Christmas holidays, to try and get everything done. We will continue to keep you updated on BBB as things progress.
