Airport Alert: House Committee Approves Bond Proposals
September 15, 2021
The House Ways and Means Committee today approved a plan to reinstate Build America Bonds and advance refunding bonds – measures that could help airports finance infrastructure projects. Democrats included the bond initiatives in the tax-writing committee's part of the $3.5 trillion reconciliation package. The vote on the Ways and Means piece was 24 to 19.
Ways and Means
Build America Bonds/Advance Refunding Bonds: The Ways and Means legislation would essentially reinstate Build America Bonds by creating "qualified infrastructure bonds." The proposal would allow issuers of those bonds to receive a tax credit of up to 35 percent, "providing direct financing support for infrastructure investments made by state and local governments."
The measure would also reinstate advance refunding bonds, which Congress repealed in 2017. AAAE has been urging Congress to reinstate both Build America Bonds, and advance refunding bonds as way to help airports finance their infrastructure projects. Chairman Richard Neal (D-MA) commented on the bond provisions in his opening statement yesterday.
"The relief packages Congress passed over the last 18 months provided some crucial aid. But we can do more," Neal said. "The Build America Bonds, which I have long championed, and advanced refunding bonds in this proposal will help states pursue public-private partnerships and make new infrastructure investments."
Zero-Emission Vehicle Infrastructure: The legislation would expand private activity bonds by adding a new category of exempt facility bonds for zero-emission vehicle infrastructure.
Sustainable Aviation Fuel: It also calls for a long term, refundable blenders tax credit for sustainable aviation fuel (SAF). According to a Committee summary, "the value of the credit is determined on a sliding scale, equal to $1.25 plus an additional $.01 for each percentage point by which the lifecycle emissions reduction of such fuel exceeds 50%."
During the markup, the Committee rejected an amendment by Rep. Ron Estes (R-KS) that would have cut the SAF provision and other green energy initiatives from the bill.
Energy and Commerce
Today, the House Energy and Commerce Committee also voted to advance its massive, $456 billion reconciliation piece containing funding for Democratic priorities that tackle climate change, promote clean energy, and expand access to affordable, healthcare.
Electric Vehicle Infrastructure: On the electric vehicle front, the package includes $2 billion for a rebate program to support purchase of EV charging equipment "located at workplaces, multi-unit housing structures, and publicly accessible locations." The legislation defines electric vehicle supply equipment as publicly accessible if it is 1) available for a minimum of 12 hours per day at least 5 days per week; and 2) networked or otherwise capable of being monitored remotely.
Transportation and Infrastructure
As we reported early this morning, the House Transportation and Infrastructure committee approved by a vote of 37-29 its $60 billion piece of the reconciliation package, including funding for transit projects, affordable housing, and funds to "reduce surface transportation-related greenhouse gas emissions."
On the aviation front, the package includes $1 billion for DOT to "support investments for projects that develop, demonstrate, or apply low-emission aviation technologies or produce, transport, blend or store sustainable aviation fuels." It also includes $6 million to help the FAA "fully implement the provisions of the Carbon Offsetting and Reduction Scheme for International Aviation, the system adopted by the International Civil Aviation Organization to reduce aviation's international carbon emissions."
