Airport Alert: House Committee Approves AIP Incentive Legislation; DeFazio Again Calls for PFC Increase
February 26, 2020
The House Transportation and Infrastructure Committee approved a bill (H.R. 5912) today that would allow airports to provide incentive payments to contractors for early completion of AIP-funded projects. Chairman Peter DeFazio (D-OR), in his statement on the legislation, again called on lawmakers to increase the federal cap on local Passenger Facility Charges.
"While this bill makes strides in the right direction," DeFazio said, "I believe there is a good case for allowing the PFC, which has been frozen for nearly two decades, to be increased in order to more quickly expedite future projects with less expense and wasted money on interest to Wall Street." Video of DeFazio's remarks on the AIP legislation and the PFC can be viewed here.
Chairman DeFazio noted that as passenger traffic continues to grow at airports, PFC revenue and AIP funding is insufficient to cover the cost of necessary airport projects, causing airports to take on more debt and defer needed projects or complete them in phases. He noted that airports devoted $12 billion, or 78 percent of PFC revenue, to servicing debt load between FY 2013 and 2017, which causes projects to take longer and cost more money.
After DeFazio's remarks on the PFC, committee members unanimously approved the AIP incentive legislation on a voice vote.
As we reported, the Expedited Delivery of Airport Infrastructure Act of 2020 was introduced earlier this month by House Transportation and Infrastructure Committee Ranking Member Sam Graves (R-MO) and Aviation Subcommittee Ranking Member Garret Graves (R-LA). The measure would permit airports to use up to $1 million in AIP funding to incentivize a contractor to complete the project early, a technique that is common for surface transportation projects.
During today's session, full committee Ranking Member Graves said his bill would "provide airports with a common-sense way to incentivize early completion of airport projects." He went on to say that the legislation would allow airports to "expedite the delivery of the airport projects. It's going to take better advantage of short construction seasons and relieve operational disruptions..."
AAAE and ACI-NA initially urged lawmakers to consider this approach during consideration of the FAA reauthorization bill, which Congress passed in late 2018, as a way to help airports reduce the time it takes to complete their infrastructure projects.
The House Transportation and Infrastructure Committee approved a bill (H.R. 5912) today that would allow airports to provide incentive payments to contractors for early completion of AIP-funded projects. Chairman Peter DeFazio (D-OR), in his statement on the legislation, again called on lawmakers to increase the federal cap on local Passenger Facility Charges.
"While this bill makes strides in the right direction," DeFazio said, "I believe there is a good case for allowing the PFC, which has been frozen for nearly two decades, to be increased in order to more quickly expedite future projects with less expense and wasted money on interest to Wall Street." Video of DeFazio's remarks on the AIP legislation and the PFC can be viewed here.
Chairman DeFazio noted that as passenger traffic continues to grow at airports, PFC revenue and AIP funding is insufficient to cover the cost of necessary airport projects, causing airports to take on more debt and defer needed projects or complete them in phases. He noted that airports devoted $12 billion, or 78 percent of PFC revenue, to servicing debt load between FY 2013 and 2017, which causes projects to take longer and cost more money.
After DeFazio's remarks on the PFC, committee members unanimously approved the AIP incentive legislation on a voice vote.
As we reported, the Expedited Delivery of Airport Infrastructure Act of 2020 was introduced earlier this month by House Transportation and Infrastructure Committee Ranking Member Sam Graves (R-MO) and Aviation Subcommittee Ranking Member Garret Graves (R-LA). The measure would permit airports to use up to $1 million in AIP funding to incentivize a contractor to complete the project early, a technique that is common for surface transportation projects.
During today's session, full committee Ranking Member Graves said his bill would "provide airports with a common-sense way to incentivize early completion of airport projects." He went on to say that the legislation would allow airports to "expedite the delivery of the airport projects. It's going to take better advantage of short construction seasons and relieve operational disruptions..."
AAAE and ACI-NA initially urged lawmakers to consider this approach during consideration of the FAA reauthorization bill, which Congress passed in late 2018, as a way to help airports reduce the time it takes to complete their infrastructure projects.
