[House Report 106-3]
[From the U.S. Government Publishing Office]
106th Congress Report
1st Session HOUSE OF REPRESENTATIVES 106-3
_______________________________________________________________________
TEMPORARY EXTENSION OF FEDERAL AVIATION ADMINISTRATION PROGRAMS
_______
February 2, 1999.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Shuster, from the Committee on Transportation and Infrastructure,
submitted the following
R E P O R T
[To accompany H.R. 99]
[Including cost estimate of the Congressional Budget Office]
The Committee on Transportation and Infrastructure, to whom
was referred the bill (H.R. 99) to amend title 49, United
States Code, to extend Federal Aviation Administration programs
through September 30, 1999, and for other purposes, having
considered the same, report favorably thereon with an amendment
and recommend that the bill as amended do pass.
The amendment (stated in terms of the page and line number
of the introduced bill) is as follows:
Page 2, line 1, strike `` `$2,347,000,000'' and insert ``
`$2,410,000,000''.
Last year, the Committee approved legislation (H.R. 4057,
H. Rept. 105-639) that would have reauthorized the Federal
Aviation Administration's (FAA) Airport Improvement Program
(AIP), the Facilities and Equipment (F&E) account, and the
Operations and Maintenance (O&M) account for 1 year and made
numerous substantive changes in the aviation laws. This
legislation passed the House on August 4, 1998. However, it was
not enacted because it could not be reconciled with similar
Senate legislation (S. 2279).
To ensure that the AIP program did not lapse, a short-term
extension was included in the Omnibus Consolidated and
Emergency Supplemental Appropriations Act for Fiscal Year 1999
(P.L. 105-277, See H. Rept. 105-825, at 608). This legislation
provided contract authority for the AIP program for only 6
months, conditioned obligation beyond $975 million on
additional contract authority and did not reauthorized O&M or
F&E at all. Those programs were appropriated money and
therefore continued without an authorization.
The 6-month AIP reauthorization means that FAA will not be
able to issue airport grants after March 31, 1999. But, more
importantly, it also cuts in half the funds that would
otherwise be able for such grants.
The practical effect of the Omnibus bill is to limit AIP
spending to $975 million. This is a dramatic reduction from the
$1.7 billion available in 1998 for AIP grants and the $1.95
billion that would be available in 1999 if the program were
authorized for a full year. This comes at a time when air
travel is increasing significantly and airport needs are
estimated to be about $10 billion per year. However, there is
sufficient funds available in the Airport and Airway Trust Fund
to meet those needs, but they cannot be released without this
authorization.
The Committee plans to approve legislation (H.R. 111) that
will ``unlock'' the Trust Fund and ensure that the revenue
collected will actually be spent on airport and airway
improvements. It is the Committee's goal to pass this
legislation by the end of March 1999 to ensure that there is no
lapse in the AIP program.
However, recognizing the vagaries of the legislative
process, the Committee wants to make sure that there will be no
lapse should H.R. 111, or similar legislation, not be enacted
by the end of March, 1999, Therefore,the reported bill (H.R.
99) would reauthorize and provide contract authority for the FAA's 1999
AIP program for the remainder of the fiscal year and authorize the O&M
and F&E accounts for fiscal year 1999. Enactment of this legislation
will allow FAA to make grants for airport improvements after March 31,
1999 and provide the full $1.95 billion for important safety and
security, capacity enhancing, and noise reduction improvements.
The reported bill also eliminates the cap and floor on the
discretionary fund in 49 U.S.C. 47115(g), which were imposed at
a time when AIP funding was lower than it's current level. The
floor was intended to ensure that FAA would have enough
discretionary money to pay for high priority airport
improvement projects when funding was low. The cap was designed
to ensure that programs that seemed to be shortchanged at the
lower funding levels, namely noise abatement, military
airports, and general aviation airports, would receive
additional AIP money if funding levels increased slightly.
However, with the recent higher funding levels, and with
even higher levels anticipated as a result of H.R. 111, there
is no longer a need for a floor on the discretionary fund.
Moreover, noise abatement, military, and general aviation
airport programs received, and will probably continue to
receive, increases in fund consistent with last year's
reauthorization bill. The Committee may also consider even
higher entitlements and set-asides for general aviation
airports and noise abatement during the upcoming multi-year AIP
reauthorization. Further, this cap has prevented FAA from using
discretionary money to fund more high priority safety and
capacity projects. Therefore, it makes sense to eliminate both
the floor and the cap at this time.
Section-by-Section Summary
Section 1. Airport Improvement Program
Subsection (a) authorizes contract authority for the FAA
Airport Improvement Program at $2,410,000,000.
Subsection (b) reauthorizes the contract authority for the
AIP through September 30, 1999, the current fiscal year.
Section 2. Airway Facilities Improvement Program
This section authorizes appropriations for the FAA air
traffic control facilities & equipment program at
$2,131,000,000 for the fiscal year 1999.
Section 3. FAA operations
Subsection (a) authorizes appropriations for FAA operations
and maintenance at $5,632,000,000 for fiscal year 1999.
Subsection (b) reauthorizes through fiscal year 2000, the
formula that calculates the amount of the general fund payment
and the amount that the Aviation Trust Fund may contribute to
the FAA's Operations account.
Subsection (c) continues the limitation on obligating funds
from the Aviation Trust Fund to those cases where 49 U.S.C.
48104 (the formula that calculates the amount of trust fund
money that may be contributed to FAA operations) is expressly
amended.
Section 4. AIP discretionary fund
This language removes the cap and floor on AIP
discretionary funds.
Hearings and Legislative History
H.R. 99 was introduced on January 6, 1999. The Committee
has not held hearings on the reported legislation.
Committee Consideration
On January 7, 1999, the Committee met in open session,
discharged the Aviation Subcommittee and ordered the bill
reported, with an amendment, by voice vote with a quorum
present. There were no recorded votes taken during Committee
consideration of H.R. 99.
Record Votes
Clause 3(b) of Rule XIII of the Rules of the House of
Representatives requires each committee report to include the
total number of votes cast for and against on each record vote
on a motion to report andon any amendment offered to the
measure or matter, and the names of those members voting for and
against. There were no recorded votes taken in connection with ordering
H.R. 99 reported. A motion by Mr. Duncan to order H.R. 99 favorably
reported to the House, with amendment, was agreed to by voice vote, a
quorum being present.
Committee Oversight Findings
With respect to the requirements of clause 3(c)(1) of Rule
XIII of the Rules of the House of Representatives, the
Committee's oversight findings and recommendations are
reflected in this report.
Cost of the Legislation
Clause 3(d)(2) of Rule XIII of the Rules of the House of
Representatives does not apply where a cost estimate and
comparison prepared by the Director of the Congressional Budget
Office under section 402 of the Congressional Budget Act of
1974 has been timely submitted prior to the filing of the
report and is included in the report. Such a cost estimate is
included in this report.
Compliance With House Rule XIII
1. With respect to the requirement of clause 3(c)(2) of
Rule XIII of the Rules of the House of Representatives, and
section 308(a) of the Congressional Budget Act of 1974, the
Committee references the report of the Congressional Budget
Office included below.
2. With respect to the requirement of clause 3(c)(4) of
Rule XIII of the Rules of the House of Representatives, the
Committee has received no report of oversight findings and
recommendations from the Committee on Government Reform on the
subject of H.R. 99.
3. With respect to the requirement of clause 3 (c)(3) of
Rule XIII of the Rules of the House of Representatives and
section 402 of the Congressional Budget Act of 1974, the
Committee has received the following cost estimate for H.R. 99
from the Director of the Congressional Budget Office.
U.S. Congress,
Congressional Budget Office,
Washington, DC, January 28, 1999.
Hon. Bud Shuster,
Chairman, Committee on Transportation and Infrastructure, House of
Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 99, a bill to
amend Title 49, United States Code, to extend Federal Aviation
Administration programs through September 30, 1999, and for
other purposes.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Victoria V.
Heid.
Sincerely,
James L. Blum
(For June E. O'Neill, Director).
Enclosure.
CONGRESSIONAL BUDGET OFFICE COST ESTIMATE
H.R. 99--A bill to amend Title 49, United States Code, to extend
Federal Aviation Administration programs through September 30,
1999, and for other purposes
Summary: H.R. 99 would authorize funding for certain
programs conducted by the Federal Aviation Administration (FAA)
through September 30, 1999. This bill would authorize the
appropriation of $7,763 million in 1999 for FAA operations,
facilities, and equipment. To date, $7,563 million has been
appropriated this year for those programs. CBO estimates that
if the additional $200 million is appropriated, outlays for FAA
operations, facilities, and equipment would increase by $82
million in 1999 and by $200 million over the 1999-2002 period.
H.R. 99 also would provide an additional $1,205 million of
contract authority to the airport improvement program (AIP);
therefore, pay-as-you-go procedures would apply to the bill.
However, providing this contract authority would have no impact
on outlays from direct spending because the baseline assumes
such funding and because AIP outlays are subject to
appropriation action.
H.R. 99 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would impose no costs on state, local, or tribal
governments.
Estimated Cost to the Federal Government: The estimated
budgetary impact of H.R. 99 is shown in the following table.
The costs of this legislation fall within budget function 400
(transportation).
----------------------------------------------------------------------------------------------------------------
By fiscal years, in millions of dollars--
-----------------------------------------------------
1999 2000 2001 2002 2003 2004
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SPENDING SUBJECT TO APPROPRIATION
Spending Under Current Law:
Budget Authority \1\.................................. 7,563 0 0 0 0 0
Estimated Outlays..................................... 5,535 1,448 400 180 0 0
Proposed Changes:
Authorization Level................................... 200 0 0 0 0 0
Estimated Outlays..................................... 82 66 32 20 0 0
Total Spending Under H.R. 99:
Authorization Level................................... 7,763 0 0 0 0 0
Estimated Outlays..................................... 5,617 1,514 432 200 0 0
DIRECT SPENDING
Baseline Spending Under Current Law:
Estimated Budget Authority \2\........................ 2,410 2,410 2,410 2,410 2,410 2,410
Proposed Changes:
Estimated Budget Authority............................ 0 0 0 0 0 0
Total Spending Under H.R. 99:
Estimated Budget Authority............................ 2,410 2,410 2,410 2,410 2,410 2,410
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\1\ The 1999 level is the amount appropriated for that year.
\2\ Budget authority for AIP is provided as contract authority, a mandatory form of budget authority, however,
outlays from AIP contract authority are subject to obligation limitations contained in appropriations acts and
are therefore discretionary. CBO's December 1998 baseline assumes a full year of budget authority will be
provided for AIP for fiscal year 1999 and for subsequent years. The full-year total is double the half-year
amount of $1,205 million provided thus far for 1999.
Basis of estimate: For purposes of this estimate, CBO
assumes that H.R. 99 will be enacted by March 31, 1999, and
that the full amounts authorized for FAA operations,
facilities, and equipment will be appropriated by June 1, 1999.
Spending subject to appropriation
H.R. 99 would authorize the appropriation of $5,632 million
for FAA operations in fiscal year 1999. The Omnibus
Consolidated and Emergency Supplemental Appropriations Act for
fiscal year 1999 (Public Law 105-277) provided $5,563 million
in budget authority for FAA operations. Thus, this bill would
authorize the appropriation of an additional $69 million for
operations in fiscal year 1999.
H.R. 99 also would authorize appropriations of $2,131
million for air navigation facilities and equipment in fiscal
year 1999. Public Law 105-277 provided $2,000 million in budget
authority for FAA facilities and equipment. Thus, this bill
would authorize an additional $131 million for fiscal year 1999
for facilities and equipment.
CBO's estimate of outlays assumes that the additional
funding for operations would be disbursed at the normal rate
for the account (88 percent in 1999), but that the funds for
facilities and equipment would be spent mostly in 2000 and
2001.
Direct spending
H.R. 99 would provide $1,205 million in contract authority
(a mandatory form of budget authority) for the airport
improvement program for the second half of fiscal year 1999; it
also would extend the authority of the Secretary of
Transportation to incur obligations to make grants under that
program.
Under current law, $1,205 million in AIP contract authority
is available for obligation until March 31, 1999. H.R. 99 would
provide an additional $1,205 million in contract authority,
which could be obligated during the second half of the fiscal
year (until September 30, 1999). Pursuant to the Budget
Enforcement Act, baseline projections assume that a full year
of contract authority will be provided for AIP in fiscal year
1999 and subsequent years. Therefore, enacting H.R. 99 would
have no net impact on AIP contract authority relative to the
baseline. Expenditures from AIP contract authority are governed
by obligation limitations contained in appropriation acts, and
thus, they are categorized as discretionary outlays. Enacting
H.R. 99 would not affect obligation limitations and thus would
have no direct effect on AIP outlays.
Pay-as-you-go considerations: The Balanced Budget and
Emergency Deficit Control Act sets up pay-as-you-go procedures
for legislation affecting direct spending or receipts. H.R. 99
would provide an additional $1,205 million in contract
authority for AIP in fiscal year 1999. Since contract authority
is a mandatory form of budget authority, it is a form of direct
spending and pay-as-you-go procedures apply to the bill. Only
changes in outlays from direct spending and changes in receipts
have pay-as-you-go effects, and this bill would not affect
either of those.
Intergovernmental and private-sector impact: H.R. 99
contains no intergovernmental or private-sector mandates as
defined in UMRA and would impose no costs on state, local, or
tribal governments.
Estimate prepared by: Victoria V. Heid.
Estimate approved by: Robert A. Sunshine, Deputy Assistant
Director for Budget Analysis.
Applicability to the Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act (Public Law
104-1).
Federal Mandates Statement
The Committee adopts as its own the estimate of the Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act (Public Law 104-4).
Constitutional Authority Statement
Pursuant to clause 3(d)(1) of Rule XIII of the Rules of the
House of Representatives, committee reports on a bill or joint
resolution of a public character shall include a statement
citing the specific powers granted to the Congress in the
Constitution to enact the measure. The Committee on
Transportation and Infrastructure finds that Congress has the
authority to enact this measure pursuant to its powers granted
under article I, section 8 of the Constitution.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3 of rule XIII of the Rules of the
House of Representatives, changes in existing law made by the
bill, as reported, are shown as follows (existing law proposed
to be omitted is enclosed in black brackets, new matter is
printed in italic, existing law in which no change is proposed
is shown in roman):
TITLE 49, UNITED STATES CODE
* * * * * * *
SUBTITLE I--DEPARTMENT OF TRANSPORTATION
* * * * * * *
CHAPTER 1--ORGANIZATION
* * * * * * *
Sec. 106. Federal Aviation Administration
(a) * * *
* * * * * * *
(k) Authorization of Appropriations for Operations.--There is
authorized to be appropriated to the Secretary of
Transportation for operations of the Administration
[$5,158,000,000 for fiscal year 1997 and $5,344,000,000 for
fiscal year 1998.] $5,632,000,000 for fiscal year 1999.
* * * * * * *
SUBTITLE VII--AVIATION PROGRAMS
* * * * * * *
PART B--AIRPORT DEVELOPMENT AND NOISE
CHAPTER 471--AIRPORT DEVELOPMENT
* * * * * * *
SUBCHAPTER I--AIRPORT IMPROVEMENT
* * * * * * *
Sec. 47104. Project grant authority
(a) * * *
* * * * * * *
(c) Expiration of Authority.--After [March 31, 1999]
September 30, 1999, the Secretary may not incur obligations
under subsection (b) of this section, except for obligations of
amounts--
(1) remaining available after that date under section
47117(b) of this title; or
(2) recovered by the United States Government from
grants made under this chapter if the amounts are
obligated only for increases under section 47108(b)(2)
and (3) of this title in the maximum amount of
obligations of the Government for any other grant made
under this title.
* * * * * * *
Sec. 47115. Discretionary fund
(a) * * *
* * * * * * *
[(g) Minimum Amount To Be Credited.--
[(1) General rule.--In a fiscal year, there shall be
credited to the fund, out of amounts made available
under section 48103 of this title, an amount that is at
least equal to the sum of--
[(A) $148,000,000; plus
[(B) the total amount required from the fund
to carry out in the fiscal year letters of
intent issued before January 1, 1996, under
section 47110(e) of this title or the Airport
and Airway Improvement Act of 1982.
The amount credited is exclusive of amounts that have
been apportioned in a prior fiscal year under section
47114 of this title and that remain available for
obligation.
[(2) Reduction of apportionments.--In a fiscal year
in which the amount credited under subsection (a) is
less than the minimum amount to be credited under
paragraph (1), the total amount calculated under
paragraph (3) shall be reduced by an amount that, when
credited to the fund, together with the amount credited
under subsection (a), equals such minimum amount.
[(3) Amount of reduction.--For a fiscal year, the
total amount available to make a reduction to carry out
paragraph (2) is the total of the amounts determined
under sections 47114(c)(1)(A), 47114(c)(2), 47114(d),
and 47117(e) of this title. Each amount shall be
reduced by an equal percentage to achieve the
reduction.
[(4) Special rule.--For a fiscal year in which the
amount credited to the fund under this subsection
exceeds $300,000,000, the Secretary shall allocate the
amount of such excess as follows:
[(A) \1/3\ shall be made available to
airports for which apportionments are made
under section 47114(d) of this title.
[(B) \1/3\ shall be made available for
airport noise compatibility planning under
section 47505(a)(2) of this title and for
carrying out noise compatibility programs under
section 47504(c)(1) of this title.
[(C) \1/3\ shall be made available to current
or former military airports for which grants
may be made under section 47117(e)(1)(B) of
this title.]
[(h)] (g) Priority for Letters of Intent.--In making grants
in a fiscal year with funds made available under this section,
the Secretary shall fulfill intentions to obligate under
section 47110(e).
* * * * * * *
PART C--FINANCING
CHAPTER 481--AIRPORT AND AIRWAY TRUST FUND AUTHORIZATIONS
* * * * * * *
Sec. 48101. Air navigation facilities and equipment
(a) General Authorization of Appropriations.--Not more than a
total of the following amounts may be appropriated to the
Secretary of Transportation out of the Airport and Airway Trust
Fund established under section 9502 of the Internal Revenue
Code of 1986 (26 U.S.C. 9502) to acquire, establish, and
improve air navigation facilities under section 44502(a)(1)(A)
of this title:
(1) $2,068,000,000 for fiscal year 1997.
(2) $2,129,000,000 for fiscal year 1998.
(3) $2,131,000,000 for fiscal year 1999.
* * * * * * *
Sec. 48103. Airport planning and development and noise compatibility
planning and programs
The total amounts which shall be available after September
30, 1998, to the Secretary of Transportation out of the Airport
and Airway Trust Fund established under section 9502 of the
Internal Revenue Code of 1986 (26 U.S.C. 9502) to make grants
for airport planning and airport development under section
47104 of this title, airport noise compatibility planning under
section 47505(a)(2) of this title, and carrying out noise
compatibility programs under section 47504(c) of this title
shall be [$1,205,000,000 for the six-month period beginning
October 1, 1998.] $2,410,000,000 for fiscal years ending before
October 1, 1999.
Sec. 48104. Operations and maintenance
(a) * * *
* * * * * * *
(c) Limitation for [Fiscal Years 1994-1998] Fiscal Years
1994-2000.--The amount appropriated from the Trust Fund for the
purposes of paragraphs (1) and (2) of subsection (a) for each
of fiscal years 1994 through [1998] 2000 may not exceed the
lesser of--
(1) * * *
* * * * * * *
Sec. 48108. Availability and uses of amounts
(a) * * *
* * * * * * *
(c) Limitation on Obligating or Expending Amounts.--In a
fiscal year beginning after September 30, [1998] 2000, the
Secretary of Transportation may obligate or expend an amount
appropriated out of the Fund under section 48104 of this title
only if a law expressly amends section 48104.
* * * * * * *