AAAE: Shuster Unveils 6-Month FAA Extension

Six-Month Extension: The Airport and Airway Extension Act of 2017 would extend aviation programs and excise taxes through the end of March 2018. Shuster was reportedly considering shorter options including proposals to extend aviation programs and taxes for one month and another to keep the FAA operating for five months.

But airports and other lawmakers pushed back, in part, because a one- or five-month extension would have prevented the FAA from beginning to distribute AIP grants in the new fiscal year. The FAA has long maintained that it needs at least six months of funding before it can begin distributing AIP grants.

A six-month bill represents a step in the right direction and would allow the FAA to begin distributing a partial year's worth of AIP funding. But AAAE and ACI-NA have been urging Congress to pass a longer extension to provide airports with more predictability and to ensure that there are no disruptions in AIP funding.

The short-term FAA extension includes a handful of non-aviation items including provisions that would extend various health programs and a section on private flood insurance. These provisions are not expected to be controversial.

The House is expected to pass the new extension next Monday or Tuesday, and the Senate is expected to clear it before the current stopgap measure expires on September 30. Another short-term FAA extension will give lawmakers more time to work on a comprehensive FAA reauthorization bill. That legislation has been held up over Shuster's controversial proposal to corporatize the Air Traffic Control system.

FAA Reauthorization Update: Shuster had indicated that the House would consider his FAA reauthorization bill and ATC plan during the week of September 11. That didn't pan out as Congress faced a tight schedule with an agenda full of must-pass legislation. It was also unclear if the Chairman actually had the votes to pass his bill.

Shuster, the Administration, and their allies reportedly have been working hard to secure additional support for ATC corporatization. The Chairman is expected to make another run at bringing his reauthorization bill to the House floor sometime in October. But Democrats and key Republicans on the Appropriations Committee strongly oppose his corporatization plan. And it is unclear if we'll see a vote on his bill next month or not.

In the meantime, stay tuned for more updates on the FAA extension next week.

Summary of Airport and Airway Extension Act of 2017

Excise Taxes and Funding for FAA Programs

Aviation Excise Taxes and Trust Fund: The bill would extend aviation excise taxes and Airport and Airway Trust Fund expenditure authority through March 31, 2018.

Airport Improvement Program: The short-term FAA extension would provide approximately slightly more than $1.67 billion for AIP through March 31, 2018 - or about half of the $3.35 billion that Congress authorized appropriated for the program in FY17.

FAA Operations: The bill includes slightly more than $5 billion for FAA Operations for the first half of FY18.

Facilities and Equipment: The bill includes more than $1.4 billion for Facilities and Equipment.

Research, Engineering & Development: The bill includes slightly more than $88 million for RE&D.

Airport Improvement Program

Minimum Entitlement: The bill would continue to allow certain primary airports to continue to receive their minimum AIP entitlement in FY18 even if their passenger enplanements dip below the 10,000 threshold. The provision is aimed at helping airports that have experienced commercial air service reductions because of the pilot shortage.

Competitive Access Reports: Current law requires a large and medium hub airport to file semi-annual competition disclosure reports if the airport was unable to accommodate an airline's request for access to gates or other facilities. The bill would extend that grant assurance through the end of March 2018.

Compatible Land Use: Current law allows DOT to make grants from the noise and environmental set-aside to states and units of local governments for compatible land use plans for areas around large and medium hub airports. The bill would extend that authority for another six months.

Pilot Program for Redevelopment of Airport Properties: The FAA Modernization and Reform Act of 2012 required the FAA to establish a pilot program that allows up to four airports to receive grants from the noise and environmental set aside to redevelop airport properties. The bill would extend the pilot program through March 31, 2018.

Disadvantaged Business Enterprise: The last FAA reauthorization bill required the DOT Inspector General to submit an annual report to Congress on the number of new small businesses owned and controlled by socially and economically disadvantaged individuals that participated in FAA programs. The short-term extension would expand that requirement through FY18.

Midway Island: Current law allows the Secretary of Transportation to enter into a reimbursable agreement with the Secretary of the Interior to fund airport development at Midway Island. The bill would extend that provision through March 31, 2018.

Marshall Islands, Micronesia and Palau: Current law allows airports in the Republic of the Marshall Islands, the Federated States of Micronesia and the Republic of Palau to be eligible to receive AIP grants from the small airport and discretionary funds. The bill would extend that eligibility through the end of March 2018.

Small Community Programs

Contract Towers: The bill includes approximately $5.2 million for the contract tower cost share program - roughly half of the current funding level of $10.35 million.

Essential Air Service: The bill authorizes about $74.8 million for the Essential Air Service program - about half the amount Congress appropriated for the program in FY17. (This funding level does not include revenue generated from overflight fees.) The bill would also extend a provision in current law related to mileage calculations to preserve service to certain EAS communities.

Small Community Air Service: The bill would authorize about $5 million for the Small Community Air Service Development Program - half of the $10 million that Congress appropriated for the program in FY17.

Miscellaneous

Contract Weather Observers: The extension would continue to prevent the FAA from discontinuing the Contract Weather Observer program at any airport until April 1, 2018.

Consumer Protections: The last FAA reauthorization bill required DOT to establish an Advisory Committee for Aviation Consumer Protection. The Committee is slated to terminate at the end of the fiscal year, but the stopgap measure would extend that Committee's operations through March 31.