By Mary Kerr (202) 225-6260
Thank you Mr. Chairman. Today is an important day for the future of our aviation system. We are marking up HR 2881, the FAA Reauthorization Act of 2007, in a bipartisan manner. I want to thank you Mr. Chairman, Mr. Mica, and Mr. Petri for working together to bring this legislation before the Committee today.
HR 2881 is the culmination of many hearings, in-depth analysis, and a continued dialogue with the FAA, our colleagues, and stakeholders.
The issues we address in this legislation are important and will determine our ability to continue to maintain the world’s safest aviation system.
I want to say upfront that in a few minutes we will be addressing FAA’s imposed work rules on our air traffic controllers in a separate amendment.
I have spent many hours over many months as the Ranking Member and now Chairman of the Aviation Subcommittee to try to bring both sides together to work out their differences. In recent weeks, Chairman Oberstar and I have convened seven meetings between the FAA and NATCA in hopes of reaching a voluntary agreement. I know Mr. Mica and Mr. Petri have also spent time on this issue.
Unfortunately, an agreement could not be reached and that left us with only one clear course of action – binding arbitration.
I strongly believe in collective bargaining and bargaining in good faith with a fair dispute resolution process for both sides. Unfortunately, that did not happen in 2006 and we will correct that wrong by adopting the amendment I will be offering in a few minutes.
HR 2881 keeps our aviation system moving forward so that we can increase capacity and safety, modernize our air traffic control system, and continue to reduce energy consumption and improve our environment.
I have said many times that I believe our Next Generation system can be absorbed by the existing FAA financing structure and that is exactly what we have done in this bill.
Our bill does not impose user fees as the Administration recommended. Instead, we are recommending to the House Ways & Means Committee that the general aviation jet fuel tax rate be adjusted for inflation from 21.8 cents per gallon to 30.7 cents per gallon, and that the aviation gasoline tax rate be increased from 19.3 cents per gallon to 24.1 cents per gallon. The forecasted growth of Trust Fund revenues, coupled with additional revenue from the recommended general aviation fuel tax rate increases, will be sufficient to provide for the historic capital funding levels required to modernize the ATC system, as well as to stabilize and strengthen the Trust Fund.
Between FY2008 and FY2011, the Act would provide $15.8 billion for the Airport Improvement Program (AIP), and nearly $13 billion for FAA Facilities & Equipment (F&E). The Act also provides $37.2 billion for FAA Operations.
Further, HR 2881 applies a four part approach to the FAA and the Joint Planning and Development Office (JPDO) regarding ATC Modernization and NextGen: 1) more funding; 2) more authority; 3) more accountability; 4) more oversight. These changes will ensure our ability to meet our modernization goals and objectives.
Funding: As I stated earlier, the FAA Reauthorization Act of 2007 provides historic funding levels for the FAA’s F&E account that will accelerate the implementation of NextGen and enable FAA to make needed repairs and replacement of existing facilities and equipment.
Authority: We increase the authority and visibility of the JPDO, by elevating the Director of the JPDO to the status of Associate Administrator of NextGen within the FAA, reporting directly to the FAA Administrator.
Accountability: The FAA Reauthorization Act of 2007 requires the JPDO to develop a work plan that details, on a year-by-year basis, specific NextGen-related deliverables required by the FAA and its partner agencies and also requires the Secretary of Transportation to report annually on the progress of the work plan. Finally, the FAA Reauthorization Act of 2007 contains provisions that hold the FAA’s vendors accountable for providing safe, quality services for ADS-B and Flight Service Stations.
Oversight: The FAA Reauthorization Act of 2007 authorizes Government Accountability Office (GAO), Department of Inspector General (DOT IG) and National Research Council to do audits and reports related to NextGen that will help Congress exercise its oversight responsibilities.
In June, the Department of Transportation (DOT) reported that only 72.5 percent of domestic flights by the U.S. 20 largest airlines arrived on-time in January, February, March and April – the worst showing for those four months since DOT began reporting on-time performance in 1995. This is unacceptable. Robust investment in airport infrastructure is necessary to enhance capacity and combat delays.
According to the FAA, the majority of air traffic delays at the top 35 airports, which account for 73 percent of passenger enplanements, can be traced to inadequate throughput. To quote the FAA – “The construction of new runways and runway extensions are the most effective method of increasing throughput.”
The FAA’s National Plan of Integrated Airport Systems (NPIAS) states that during the next five years, there will be $41.2 billion of AIP-eligible infrastructure development, an average of $8.2 billion per year. This includes approximately $18 billion in runway-related needs including new runway, taxiway and apron construction. However, in March 2007, the FAA testified that the current NPIAS may understate the true cost of needed capital investment, as sharp increases in construction costs occurring in the last half of 2006 were not fully reflected.
To combat inflation and to help airports meet increased capital needs, the FAA Reauthorization Act of 2007 would increase the Passenger Facility Charge (PFC) cap from $4.50 to $7.00. According to FAA, if every airport currently collecting a $4.00 or $4.50 PFC raised its PFC to $7.00, it would generate approximately $1.1 billion in additional revenue for airport development each year. The FAA Reauthorization Act of 2007 also provides significant increases in AIP funding for smaller airports, which are particularly reliant on AIP for capital financing.
I know members are interested in small community service and I would like to mention a few points. First, we rejected the Administration’s proposal to cut funding for the Essential Air Service (EAS) program by more than half. Instead, we increased the total amount authorized for EAS each year from $127 million to $133 million (including $50 million derived from overflight fees). We also make some changes to the EAS program that will improve the quality of air service received by EAS communities. Finally, the bill extends the Small Community program through FY 2011, at the current authorized funding level of $35 million per year.
In addition to providing for the modernization and increased capacity of our system, aviation safety is extremely important and as a result, we have numerous initiatives and policies to make our system the safest it can be.
In particular, I want to highlight two issues that were recently raised in our NTSB Most Wanted hearing and are being addressed in this legislation.
First, we are requiring the FAA to issue a final rule regarding the reduction of fuel tank flammability in aircraft no later that Dec. 31, 2007.
Second, we authorize $42 million for runway incursion reduction programs between FY08-FY11. We also require the FAA to submit a report to Congress containing a plan for the installation and deployment of systems to alert controllers and flight crews to potential runway incursions and provide funding for runway status light acquisition and installation between FY08-FY11.
Here at home and across the globe, more is being done to reduce energy consumption and emissions. Within aviation, changes in a variety of other factors, such as operating procedures, aircraft routing, and load factors, can also have significant impacts on emissions.
Under this legislation, we establish new environmental provisions to help reduce emissions and energy consumption. For example, we establish the high performance and sustainable air traffic control facilities by implementing practices for new construction and major renovation of air traffic control facilities that are environmentally friendly. This provision is modeled after what is currently being done at O’Hare International Airport.
Finally, over the last eight months, passengers on our airlines have encountered delays and cancelled flights, resulting in lengthy tarmac delays. Voluntary efforts by the industry to improve airline service have come under strong criticism and closer oversight of the aviation industry is needed.
During our April 2007 hearing, we learned that airlines and airports do not have emergency contingency plans in place.
I said then it should be a priority and that is why in this legislation, we require air carriers and large and medium hub airports to file emergency contingency plans, detailing food, water, restroom facilities, cabin ventilation, and medical treatment for passengers onboard aircraft, with the Secretary of Transportation for review and approval. The plans must also be updated periodically and fines are imposed by DOT for violations. In addition, the Aviation Subcommittee will continue its oversight on this issue by holding additional hearings in the coming months.
Again, this legislation reflects the 10 hearings held by the Aviation subcommittee on reauthorization issues, our focused roundtable discussions, an open dialogue and maintaining the best, most advanced, and safest aviation system in the world.
Mr. Chairman, I would again like to thank you, Mr. Mica, and Mr. Petri for working together on this important legislation and urge my colleagues to support the bill.
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