Airport Alert: House Democrats Propose to Raise PFC Cap as Part of Infrastructure Framework

 

House Democrats today unveiled a broad $760 billion infrastructure plan that calls for raising the federal cap on local Passenger Facility Charges to an unspecified amount and indexing it for inflation. The framework proposes investing $30 billion in airport and airway infrastructure with an emphasis on funding for sustainability and noise projects.

 

Overall Aviation Investment: The House Democrats' proposal - officially known as the "Moving Forward Framework" - calls for investing $30 billion in airport and airway infrastructure over five years or $60 billion over ten years. A committee summary correctly points out that "while passenger traffic in the United States increased by nearly 20 percent since 2009, Congress has maintained relatively flat funding levels for the AIP since 2007 and has not increased the current PFC cap of $4.50 per enplanement since 2000."

Passenger Facility Charges: The infrastructure plan proposes to raise the PFC cap and index it for inflation. But it does not mention a specific dollar amount for the initial PFC increase. The plan indicates that these two steps "would allow for increased investment in airports that are at or over capacity with travelers in terminals and increasingly congested with airplanes on runways and taxiways."

 

During a press conference this morning with Democratic leaders, House Transportation and Infrastructure Committee Chairman Peter DeFazio (D-OR) discussed the need for a PFC increase and how it helps increase competition and lead to lower fares. DeFazio also highlighted how the airlines increase bag fees while opposing a modest PFC increase - which he called a "bunch of B.S." A clip of his comments may be viewed here.  

 

"The call from Chairman DeFazio and House Democrats to update the antiquated PFC cap is exactly what's needed to spur investments in terminals and other critical airport facilities," AAAE President and CEO Todd Hauptli said yesterday. "The entirely predictable airline opposition that will surely follow should do nothing to slow the House and Senate from quickly turning these 'principles' into public law."

 

AAAE, ACI-NA and ACC sent a letter to Chairman DeFazio today voicing their support for his proposal to raise the PFC cap and index it for inflation. A copy the letter may be viewed here.

 

Airport and Airway Investment Program: The framework calls for creating a new "Airport and Airway Investment Program" to help accelerate NextGen and fund certain airport projects. According to a committee documents, the new program is aimed at investing in "modernization projects that enhance airport and airspace capacity, reduce an airport's carbon footprint, or achieve an otherwise significant or regional objective." Funding would come from the Airport and Airway Trust Fund.

 

Sustainability and Noise: Democratic lawmakers have been exploring ways that infrastructure policy could help mitigate negative impacts of climate change and aircraft noise. On the aviation front, the proposal calls for researching and funding noise programs to help "alleviate its impact on communities near airports." It would also incentivize the use of sustainable aviation fuel and development of "hybrid and electrically powered aircraft designs" to reduce noise and pollution.

UAS: The proposal would also promote aviation innovation by advancing the "development and increased use of unmanned aircraft systems (UAS)..." It also calls for integrating large UAS and electrical vertical takeoff and landing aircraft into the National Airspace system.

The House Ways and Means Committee is scheduled to hold a hearing this afternoon on "funding and financing infrastructure investments." During the press conference this morning, House Speaker Nancy Pelosi (D-CA) indicated that Democrats plan to take their proposal to the House floor "when we are ready." But she didn't lay out specific timeline.

 

Pelosi and other Democratic leaders also expressed their hope that House Republicans and the White House would work with them to produce a bipartisan infrastructure plan. Ways and Means Committee Richard Neal (D-MA) also told reporters that he has had recent conversations with Treasury Secretary Steven Mnuchin about infrastructure. But whether both sides will be able to work together on a broad infrastructure bill in a highly contentious political year remains to be seen.