Airport Alert: House Approves $1.5 Trillion Infrastructure Bill; Measure Authorizes Additional Funding for Airports
July 1, 2020
The House today approved H.R. 2, a $1.5 trillion infrastructure bill that would increase the AIP authorization level to $4 billion annually through FY25 and authorize up to $4 billion in supplemental airport funding per year during the same five-year time fame. The House passed the bill by a mostly party-line vote of 233 to 188.
Democrats argued that their bill would help repair our nation's crumbling infrastructure and create good-paying jobs. House Majority Leader Steny Hoyer (D-MD) yesterday said, "Now, the pandemic's economic impacts make it even more necessary that we invest in infrastructure projects that will help put Americans back to work and get our economy back on track and moving forward."
But Republicans argued that the Democrat's infrastructure package is a partisan measure that will not be enacted into law. Transportation and Infrastructure Ranking Member Sam Graves (R-MO) accused his Democratic colleagues of "rushing this bill, which spends $1.5 trillion of taxpayers' money through a sham legislative process."
Before final passage, the House considered approximately 170 amendments. Most of those were approved in separate blocs including one that contained the aviation-related items described below except for the manager's amendment. However, the House rejected a bloc of eight Republican amendments offered by Ranking Member Graves.
Senate Majority Leader Mitch McConnell (R-KY) today threw cold water on the Democrat's infrastructure bill. During comments on the Senate floor, McConnell called the bill "nonsense" and said it "is not going anywhere in the Senate." The White House also threated to veto the legislation.
Key Amendments Adpoted
DeFazio/Manager's Amendment: The House-passed bill includes a manager's amendment that incorporates several proposals including one from Chairman of the Homeland Security Committee Bennie Thompson (D-MS). Thompson's amendment would ensure that TSA workers are "afforded the same rights and protections afforded to other Federal workers under Title 5." Under his proposal, "TSOs would be compensated under the General Services wage system" and "have full collective bargaining rights...."
Garcia/COVID-19 Protections: Rep. Jesus Garcia's (D-IL) amendmentwould "expand COVID-19 protections to passenger and freight/cargo transportation workers across all modes."
Jackson Lee/COVID-19 Funding at Airports: Rep. Sheila Jackson Lee's (D-TX) amendment would require "a report from the FAA on those areas of the airport system that have not received any COVID-19 related funding and requires prioritizing of funding to these areas."
Jayapal/Environmental Set-Aside: Rep. Pramila Jayapal's (D-WA) amendment would increase the environmental set-aside for supplemental airport funding in the underlying bill from 4.5 percent to 5 percent.
Kilmer/Airport Resiliency Projects: Rep. Derek Kilmer's (D-WA) amendment would allow Airport Resiliency Projects to include projects at general aviation airports that are "designated as a Federal staging area by the Federal Emergency Management Agency."'
Lewis/Airport Sponsorship: The House approved an amendment from Rep. John Lewis (R-GA) that would codify "existing FAA rules about changes in airport sponsorship."
Lynch/Federal Guidelines for COVID-19: Rep. Stephen Lynch's (D-MA) amendment would require DOT, HHS, and DHS "to establish an expert Joint Task Force to develop uniform federal safety guidelines and protect passengers and aviation employees against the impact of the coronavirus pandemic." This is similar to a bill (S. 3681) that Senators Ed Markey (D-MA) and Richard Blumenthal (D-CT) introduced in the Senate.
Napolitano/Fuel Tax:Rep. Grace Napolitano's (D-CA) amendment would overturn " a 2014 FAA policy change and reestablishes previous FAA interpretation and enforcement that the restriction on the use of aviation fuel tax revenues for airport purposes applies to excise taxes and not general sales taxes."
Rouda/Emissions-Noise: Rep. Harley Rouda's (D-CA) amendment calls for the establishment of "the Aviation Industry Assistance for Cleaner and Quieter Skies Voucher Program to provide incentives to enhance our domestic airline fleets and reduce emissions and noise."
Smith/Pollution Study: Rep. Adam Smith's amendment (D-WA) would require the FAA and the EPA to "enter into an agreement with an eligible institution of higher education to conduct a study examining airborne ultrafine particles and their effect on human health."
Waters/Concessionaires: Rep. Maxine Waters' (D-CA) amendment would require airports to use at least 2 percent of supplemental funding "to provide financial relief to airport concessionaires experiencing economic hardship" in FY21. It would also require airports to "show good faith efforts to provide relief to small business concerns owned and controlled by socially and economically disadvantaged businesses" during the same year. Waters' initial amendment called for both requirements to be in place through FY25.
Recap of H.R. 2, the Moving Forward Act
Airport Funding
AIP Funding: The bill would increase the annual authorization level for the traditional AIP program from $3.35 billion to $4 billion through FY25 - an increase of $650 million annually over the current authorization level. It calls for AIP funds for commercial service airports in FY21 through FY25 to be distributed based on enplanements for calendar year 2019 if the enplanements are higher.
Supplemental Funding: The bill would also authorize up to $4 billion in supplemental funding for airports through FY25 with a 100 percent federal share. The measure would authorize $3 billion in supplemental funding in FY21 and increase annual funding by $250 million every year to $4 billion by FY25. Supplemental funds would include the following set asides:
- 3.5 percent for cargo airports;
- 4 percent for general aviation, reliever and nonprimary commercial service airports; and
- 5 percent for environmental projects (revised.)
Distribution: Supplemental funds for commercial service airports would be distributed based on enplanements for calendar year 2019 or the most recent calendar year, whichever is greater. The bill would prohibit any airport that received more than four times its annual operating expenses in the CARES Act from receiving supplemental funding in FY21 or FY22.
Eligibility in FY21: The bill would allow airports to use the supplemental funding in FY21 for a variety of purposes including terminal development; operations; cleaning; sanitization; janitorial services; debt service; and rent and fee waivers to airport concessions and other lessees. As mentioned above, airports would be required to use at least 2 percent of supplemental funding "to provide financial relief to airport concessionaires experiencing economic hardship" in FY21.
Eligibility in FY22 through FY25: The bill would allow airports to use supplemental funding in FY22 through FY25 for AIP-eligible projects, PFC-eligible projects (including terminal development projects), any development project "directly or substantially related to the transportation of passengers or property, and debt service or other financing costs related to such projects."
Small Airport LOIs: The bill includes a proposal from Rep. Lloyd Smucker (R-PA) that would expand Letters of Intent to small airports.
Airport Financing
Bond Provisions: The bill would spur "private investment through the tax code by permanently reinstating Build America Bonds and Advance Refunding Bonds, and increasing and expanding the issuance of Private Activity Bonds." The Tax Cut and Jobs Act, which Congress passed in late 2017, repealed advance refunding bonds despite objections from airports.
Innovative Financing: The bill includes another proposal from Rep. Smucker that would allow DOT to approve applications at up to 30 airports to use innovative financing techniques to help lower costs and expedite airport infrastructure projects.
TIFIA: Unfortunately, the bill does not include a proposal from Rep. John Garamendi (D-CA)thatwould have allowed publicly owned commercial service airports to receive credit assistance under the Transportation Infrastructure Finance and Innovation Act. Garamendi now plans to introduce a free standing TIFIA for airports bill.
Environmental
Airport Resiliency Projects: The bill would make resiliency projects at commercial service airports AIP-eligible. Specifically, the bill would expand AIP eligibility to include projects that "increase resilience for the purpose of resuming flight operations under visual flight rules following a natural disaster."
Alternative Fuel and Low Emission Aviation Technology Program: The bill would authorize $200 million annually for the Alternative Fuel and Low Emission Aviation Technology Program with funding split equally between the development of low emission aviation technologies and the production of sustainable aviation fuels.
VALE Program: The bill would expand the Voluntary Airport Low Emission Programby allowing airports outside of air quality nonattainment areas to use AIP funds and PFC revenue for eligible projects. Currently, VALE funding is "available to commercial service airports located in areas that are in nonattainment or maintenance of National Ambient Air Quality Standards."
Sustainable Aviation Fuel: The bill would authorize $30 million annually through FY25 to study and develop sustainable jet fuel.
Alternative Jet Fuel: The bill would authorize $5 million annually through FY25 for work performed by the Centers of Excellence for Alternative Jet Fuels and Environment. Programs include those that "assess and reduce the environmental impacts of aviation and to improve the health and quality of life of individuals living in and around airport communities."
Climate Change: The bill calls for DOT to enter an agreement with the National Academies of Sciences, Engineering, and Medicine to "conduct a study on climate change mitigation efforts with respect to civil aviation and aerospace industries." The bill authorizes $1.5 million for the study.
