Airport Alert: House Approves FY23 DOT/FAA Spending Bill

The House of Representatives today approved a six-bill 'minibus' appropriations package that includes funding for the Department of Transportation and Federal Aviation Administration in Fiscal Year 2023. The transportation section of the multi-bill package includes $3.35 billion for AIP, an additional $272.6 million for supplemental discretionary grants to airports, and an almost $10 million increase for the FAA Contract Tower Program.  

House Majority Leader Steny Hoyer (D-MD) set a goal of passing the six-bill appropriations package and then bringing at least three more spending bills to the floor before the August recess. However, this will be a tall task. House Democrats can only lose at most four votes and still pass legislation without GOP support, and no Republicans voted to pass any of the remaining spending bills out of committee. Considering that there are intraparty disputes among Democrats over several of the appropriations bills that have yet to be considered, it's possible that the House will only be able to pass one additional spending bill before lawmakers leave town for the traditional August recess. 

On the Senate side, Appropriations Chair Patrick Leahy (D-VT) plans to post his committee's 12 bills at the end of July and skip markups unless he can reach agreement with Republicans on an overall spending level for FY23 annual spending bills. In a replay of last year's appropriation's process, though, the two parties continue to be at odds on topline spending levels and policy riders. Given the lack of progress, it is a foregone conclusion that Congress will be unable to pass an omnibus spending package before funding expires on September 30 and will therefore have to resort to temporary stopgap funding bills to keep the government funded beyond the beginning of the new fiscal year on October 1.

Aviation Amendments
 
Kahele/Foreign Air Carriers:  During debate on the six-bill appropriations package, the House approved a bipartisan amendment offered by Rep. Kai Kehele (D-HI) that would 'prevent flags of convenience carriers from undercutting U.S. jobs by ensuring that no federal funds can be used to approve a new foreign air carrier permit unless certain conditions are met….' 
 
Airport Improvement Program 

AIP Funding: The House bill proposes $3.35 billion for the traditional AIP account in FY23 “ the same as the FY22 funding level. Of that amount, the bill designates $137.4 million for program administration expenses, $15 million for the Airport Cooperative Research Program, $40.8 million for Airport Technology Research, and $10 million for the Small Community Air Service Development Program. 

Supplemental AIP Funding: The House bill includes an additional $272.6 million in supplemental AIP discretionary grants “ approximately $281.6 million less than the amount Congress approved in FY22. Current law requires that not less than 50 percent of these funds should be reserved for nonhub, small hub, reliever, and non-primary airports. The report accompanying the House bill directs FAA to restrict this set-aside to 50 percent and to use the remaining funds for grants at medium and large hub airports. 

Earmarks: The House bill reserves approximately $172.6 million of the supplemental AIP funding for earmarks, which are officially known as 'Community Project Funding' requests. That is $106.6 million less than the FY22 enacted level. The airport projects and other earmarks funded in the House bill may be viewed here. 

State Block Grant Program: The report accompanying the House bill indicates that lawmakers are concerned that some states participating in the AIP State Block Program will be unable to effectively administer Bipartisan Infrastructure Law or annual appropriations funding for GA and non-primary commercial service airports. The Committee directs FAA 'to evaluate whether these states have the organizational capacity to administer these funds and are making full use of FAA policy that allows states to use grant funds for the direct administrative costs of airport projects, and if any associated unspent grant funding affects the safety and security needs of the national airspace system.' 
Small Community Programs

Contract Towers: The measure includes $187.8 million in dedicated funding for the Contract Tower and Contract Tower Cost Share Programs “ almost $10 million more than the current level. That increase would fund all 260 contract towers currently in the program and allow the FAA to add other airports to the program during the next fiscal year. The House report notes that lawmakers 'continue to strongly support the FAA Contract Tower Program as a cost effective and efficient way to provide air traffic control services to small airports across the country.' 

Essential Air Service: The House bill includes $368.7 million in discretionary funding for the Essential Air Service Program. Coupled with an estimated $81.3 million from overflight fees, the overall funding level for EAS would rise to $450 million in FY23 “ the same as the administration's budget request. 

Small Community Air Service Development: It also includes $10 million for the Small Community Air Service Development Program. This is the same amount that Congress approved for the program in FY22 and $10 million more than the administration requested.  

Remote Towers: The House report indicates that remote towers have the 'potential means to enhance safety, reduce costs, and expand air traffic control services at rural and small community airports.' It points out that the FAA is currently evaluating remote towers at two locations and is planning to add a third location by year's end. The Committee urged the FAA to also consider the mix of aircraft, including AAM. 
Environment and Noise
 
Transition from AFFF to Fluorine-free Foam (F3): The report accompanying the House bill includes AAAE-supported direction to FAA regarding the upcoming transition from AFFF to a F3. As we have reported, the U.S. Navy last month provided industry with an opportunity to comment on a draft MIL-SPEC for F3, signaling that DOD and FAA are making significant progress in finding a suitable replacement foam and are on track to meet the January 2023 deadline set in the FY20 National Defense Authorization Act for having an approved F3. However, without a proactive transition plan from FAA in collaboration with other relevant federal stakeholders, the transition from AFFF to F3 for airports will likely face numerous hurdles. The AAAE team has worked closely with appropriators to press FAA to provide airports with the necessary guidance to ensure an orderly and cost-effective transition. 

The House report reads: 'The Committee is encouraged by DOD's progress in developing specifications for firefighting foam and the FAA's long-standing research and testing thereof. The Committee urges the FAA to ensure an orderly transition from current to replacement firefighting foam for the safety of passengers and crewmembers, airport firefighters and workers, and the communities that neighbor airports. The Committee directs the FAA, in coordination with DOD and EPA, to develop a transition plan not later than 180 days after the date of the publication of the military specifications (mil-spec) for firefighting foam. The transition plan should, at a minimum, achieve the following goals: provide Part 139 airports with information on obtaining EPA guidance on acceptable environmental limits; best practices for the decontamination of existing aircraft rescue and firefighting vehicles, systems, and other equipment previously used to deploy firefighting foam; and timelines for the release of policy and guidance relating to Part 139 airport implementation plans for obtaining approved mil-spec products and firefighting personnel training.' 

Community Engagement and Noise: Lawmakers continued to focus on aircraft noise and community engagement. The House report reiterates that lawmakers are pleased that 'FAA is challenging its own long-held beliefs about noise, including whether the day-night average sound level (DNL) is the appropriate measure and whether 65 decibels is the appropriate threshold for noise tolerance.' The report goes on to direct FAA to 'prioritize funding to increase the FAA's community engagement capacity, including participating in community roundtables and meetings with local officials; to operate and maintain the FAA Noise Portal...; and to fulfill Congressional mandates related to aircraft noise, such as completion of the airport noise mitigation and safety study report on aircraft noise exposure and the study on potential health and economic impacts of overflight noise.' 

Emissions Reduction Plan: In November 2021, DOT released its U.S. Aviation Climate Action Plan, which aims to achieve net-zero emissions, economy-wide by 2050 through coordinated action by the aviation industry and the Federal government on sustainable aviation fuels, new aircraft technologies, fleet renewal, and operational improvements. The report directs FAA to update lawmakers on 'expected timeline, sequence, and effect of actions; the roles and responsibilities of Federal agencies and private industry; and metrics for measuring progress.' 

Airport Environmental Mitigation Pilot Program: The 2018 FAA Reauthorization Act authorized this pilot program to measurably reduce or mitigate aviation impacts on noise, air quality, or water quality at or within five miles of an airport. While FAA released a Notice of Funding Opportunity (NOFO) in May 2021, it has yet to make any grant awards. As a result, lawmakers directed the agency to provide an update on the 'design of the pilot program, NOFO, and an evaluation of and the response to the NOFO.' 

Voluntary Airport Low Emissions Program: The report 'urges the FAA to remind airports that successful projects include early coordination with the FAA and collaboration with carriers to identify projects suitable for the VALE program.' 

Leaded Avgas: Lawmakers expressed support for the Eliminate Aviation Gasoline Lead Emissions (EAGLE) initiative, a public-private partnership between the federal government and industry stakeholders like AAAE, which aims to eliminate the use of leaded aviation fuel by the end of 2030 without adversely affecting the existing piston-engine fleet. 

New Entrants

Advanced Air Mobility: The House report calls on FAA to maximize the current regulatory system and prioritize internal and interagency coordination to facilitate the introduction of AAM aircraft and enable autonomy and other technologies. It goes on to direct FAA 'to ensure the timely completion of the proposed Special Federal Aviation Requirement which will enable commercial operations and pilot licensing in a manner that meets the FAA's stated goals of completing this by December 31, 2024.' 

Commercial Spaceport Infrastructure: The 2018 FAA Reauthorization Act required FAA to evaluate the Federal government's national security and civil space transportation needs and propose policies and programs to ensure a robust spaceport infrastructure. The committee urges completion of this national spaceports policy and directs FAA to also assess the effectiveness and suitability of funding programs like the Space Transportation Infrastructure Matching Grant and AIP for supporting spaceport infrastructure. 

Unmanned Aircraft Systems: Lawmakers expressed concern that the Beyond Visual Line of Sight (BVLOS) Aviation Rulemaking Committee's (ARC) four-month delay in submitting its recommendations to FAA will also delay the issuance of a final regulation. The report directs FAA to develop a rulemaking plan and strategy not later than October 1, 2022, detailing how it plans to address the BVLOS ARC recommendations and the steps and timeline leading up to the final rulemaking. 

The report goes on to note that 'FAA has granted numerous BVLOS waivers enabling low-altitude operations, but needs to create a faster waiver process' and encourages FAA to explore BVLOS standard scenarios and pre-defined risk assessments to streamline and standardize low-risk BVLOS waivers, while also directing FAA to issue additional guidance on applying for low-altitude BVLOS waivers.
Miscellaneous

Radio Altimeters: Lawmakers conveyed their shared concerns with FAA over potential interference caused by 5G C-Band signals and called for continued collaboration between federal, aviation, and telecommunications stakeholders. The report continues that any long-term solution would require robust performance standards for radio altimeters, and as such, lawmakers directed FAA to dedicate at least $5 million towards altimeter research and to support voluntary forums with industry partners to not only develop new performance standards for 5G, but also prepare for future 6G and 7G rollouts. 

Aviation Workforce Development Grants: The bill includes $10 million for the aviation maintenance technician development program and $5 million for the aviation workforce development program to increase the strength and number of aviation professionals who are well-trained and can be relied upon to make air travel safe and efficient. This is an increase of about $9 million over the Biden Administration's request. 

Safety Management Systems: The Committee voiced support for FAA's mandatory and voluntary SMS programs for air carriers, airports, and manufacturers, but emphasized that 'approval for the use of alternate dispatch locations does not relieve operators of their regulatory obligations.' The report requires FAA to update lawmakers on alternate dispatch locations, including the historical and current usage, approval process, reported safety concerns, and regulatory compliance. 

Cost Free Space: The House bill includes a AAAE-backed proposal that would continue to prohibit the FAA from requiring airports to provide space free of charge in airport-owned buildings. 

Contract Weather Observers: The bill would continue to block the FAA from eliminating the Contact Weather Observers program at any airport.