Additional Details Emerge on Senate FY24 DOT/FAA Spending BIll

July 21, 2023

As we reported yesterday, the Senate Appropriations Committee met and approved its version of legislation that would fund the Department of Transportation and Federal Aviation Administration for the upcoming fiscal year that begins on October 1. The following provides additional details on the Senate bill and the committee report accompanying it. 
 
• A copy of the Senate bill is here. 
• A copy of the report accompanying the Senate bill is here. 
• A link to congressionally directed spending, including airport earmarks is here. 
 
AIP/Airport Funding: The Senate FY24 DOT/FAA spending bill proposes to fund AIP at $3.35 billion and includes $201 million for airport earmarks. Notably, the measure also includes $300 million from the general fund for supplemental airport grants. The House DOT/FAA spending bill approved in committee earlier this week includes $3.35 billion for AIP and $303 million for airport earmarks but does not provide funding for supplemental AIP grants. 
 
Of the funding provided in the Senate bill for "regular" AIP, $157.5 million is designated for administrative expenses, which the committee notes should provide additional staff to 'support the FAA's work to help airports develop plans to mitigate the impact of climate change on airport infrastructure.' The Senate further directs that $15 million in AIP funding is designated for Airport Cooperative Research; $41.8 million is provided for airport technology research; and $10 million is designated for the Small Community Air Service Development Program. Lawmakers note that they expect DOT to prioritize SCASDP grants to communities that lost service due to the COVID-19 pandemic. 

Of the $300 million provided for AIP supplemental discretionary grants, the Senate directs that not less than $25 million be made available for ZEV and VALE eligible projects at any commercial service airport. The committee notes that it 'expects the FAA to actively engage with airport sponsors at major hubs to identify projects suitable for the VALE program, such as energy efficiency, energy resiliency, and renewable energy projects that would help prevent power disruptions or outages.' 

The Senate bill prohibits the use of AIP funding for "the replacement of baggage conveyor systems, reconfiguration of terminal baggage areas, or other airport improvements that are necessary to install bulk explosive detection systems." Finally, the bill includes a provision that allows small airports to continue contributing 5 percent of the total cost for unfinished phased projects that were underway prior to the passage of the FAA Modernization and Reform Act of 2012 (Public Law 112- 095).
 
Ops/F&E/R,E,&D Funding: The Senate bill proposes $12.74 billion for FAA operations, which committee leaders note would allow the agency to hire 1,800 new air traffic controllers. These figures are similar to those proposed in the House for these purposes. The Senate bill proposes $3.43 billion for FAA facilities and equipment; the House bill proposes $2.973 billion. On FAA research, engineering, and development, the Senate bill proposes $260 million; the House requests $196.05 million. 
 
Contract Towers: Like the House bill, the Senate provides $194 million for the Contract Tower Program and cost-share program. The committee directs the FAA to 'continue to operate all contract towers currently in the program, including the contract tower cost-share program, as well as to expeditiously add qualified eligible airports. The committee directs the FAA to expedite the applications for cost-benefit ratio studies upon receipt of all applications to the contract tower program, including from Pinal Airpark, and to take into account all relevant operations activities, including military and commercial operations, as permissible under current law.' The committee also directs the FAA to 'provide flexibility to contract towers at small-hub airports with unique terrain and winter weather challenges so they include a minimum of two controllers during all regularly scheduled commercial flights, where permissible under current law.' The report further states that 'The committee is aware of concerns about the FAA's efforts to realign and expand the number of FAA contract tower service areas. The committee expects the FAA to respond to inquiries from Congress about the rationale for this proposal, its impact on controllers, and the impact on the risk to the NAS as a result of this change. Further, the committee also expects the FAA to respond to all Congressional inquiries about this matter within 30 days of enactment of this act. The committee directs the FAA to provide a briefing on the FAA's plans regarding the realignment within 45 days of enactment of this act.'
 
EAS Funding: The Senate bill includes $348.6 million for EAS. This appropriation would be in addition to an estimated $154.4 million from overflight fees collected by the FAA, allowing the Department to support a total program level for EAS of $503 million. The committee's recommendation is equal to the budget request and $6.3 million less than the FY23 funding. 
 
Air Traffic Control Privatization: The committee continues its opposition to ATC privatization. The report accompanying the bill states that 'The United States has the largest, safest, most efficient, and most complex air traffic control system in the world, and the FAA should remain a global leader with a singular and unified mission of safety. To that end, the committee does not support any efforts to transfer the FAA's air traffic functions to a not-for-profit, independent, private corporation. The committee is aware that if the nation's air traffic control system had been privatized during the COVID-19 pandemic, similar to other air navigation service providers in Canada and the European Union, the United States would have faced severe funding shortfalls. These shortfalls would have likely led to controller layoffs and greater risks to flight safety, and a slower recovery after the end of the pandemic, thus leading to more flight delays and price increases for consumers. 
 
Transition Plan to Fluorine-Free Firefighting Foam: The Senate directs the FAA to 'develop a transition plan for part 139 airports to use the new military specification [MIL-SPEC] for firefighting foam, including for any supplemental equipment needed to utilize these products. The FAA should use AIP funds to help airports transition to PFAS-free authorized firefighting agents. The FAA should also work with the EPA, DoD, industry, and academic institutions to find innovative solutions to safely contain or destroy existing PFAS chemicals at airports, such as through plasma gasification.' 
 
Airport Resiliency: The Senate directs the FAA to 'work with the National Oceanic and Atmospheric Administration and the United States Army Corps of Engineers to identify best practices for, and study the feasibility of, improving resiliency of airports in coastal or flood-prone areas. The FAA shall also update its advisory circular on airport master planning to provide guidance on resiliency.'
 
Radio Altimeters and 5G: The committee directs the FAA to 'continue altimeter research and support voluntary forums with industry partners in order to establish new performance standards that consider the future of 5G, 6G, 7G, and beyond' and requests a briefing from FAA on any research and development activities that the FAA can conduct and/or sponsor to prepare for 6G, 7G, and beyond.
 
Alternative Fuels for General Aviation: The Senate bill includes $11.2 million for alternative fuels for general aviation. The report accompanying the bill notes that the 'committee directs the FAA's management advisory council to initiate a special review of the FAA's actions and plans to phase out lead from aviation gasoline. The special review shall include the effectiveness of the FAA's eliminate aviation gasoline lead emissions [EAGLE] initiative, the role of agencies beyond the DOT and EPA]to help expedite the phase out of lead, whether additional actions or measures can be taken to accelerate the safe transition to unleaded aviation gasoline, and recommendations for improving the FAA's ongoing activities, including additional interagency participation and support, with a view towards accelerating the phase out of lead from aviation gasoline.' The FAA is required to submit a summary of the Council's findings within two years. 

Environment and Energy: The Senate bill includes $21 million for environment and energy, of which $8.5 million is for the aviation sustainability center [ASCENT] COE on sustainable aviation fuels. 
 
NextGen-Environmental Research-Aircraft Technologies and Fuels: The Senate bill includes $68 million of which $26.5 million is to be used for the ASCENT COE on SAFs and aviation noise, and $38 million is designated for the continuous lower energy, emissions, and noise [CLEEN] program. The report notes that 'The committee continues to direct the FAA to prioritize research related to SAFs, certification of SAFs, and challenges associated with the SAF supply chain. The Office of Environment and Energy and the Office of Airports should work together to identify SAF related projects at airports that can be funded from AIP grants. The FAA should also support hydrogen and fuel-cell related technologies that could reduce the noise and emissions footprint in future aircraft. Within the CLEEN program, the FAA may use any unused funds to work with commercial supersonic aircraft manufacturers that will help mature clean and quiet technologies for conventional nonsupersonic aircraft manufacturers.'

SAF Assessment: The report notes that the 'committee supports the Department's commitment to support the development of infrastructure and transportation systems that will connect SAF feedstock producers, SAF refiners, and aviation end users.' Within 90 days of enactment, FAA is directed to update the House and Senate on these efforts, including an assessment of locations in FAA's Central Region that are near a significant Defense Logistics Agency refueling location. 

Aviation Workforce Development Grants: The Senate bill includes $20 million for the aviation workforce development programs as authorized by section 625 of the FAA Reauthorization Act of 2018. The committee notes that 'funds provided for aircraft pilot workforce should be prioritized for applicants that can help increase the number of qualified pilots in commercial service and that demonstrate the ability to leverage private sector investments.'

What's Next?: Ultimately, lawmakers will have to reconcile differences between the House and Senate bills, a process that promises to be extremely difficult. As we have repeatedly noted, the Democrat-controlled Senate is moving to fund the federal government at FY23 levels in accordance with the debt ceiling deal approved earlier this year. House Republicans, in contrast, are working aggressively to reduce federal spending and moving to fund annual appropriations bills at FY22 levels overall, which would necessitate government-wide cuts of nearly $120 billion from current levels.