CAA: Legislative Update, "Senate Approves FY02 DOT Appropriations Bill"

["Stephen Irwin" <stepheni@xxxxxxxxx>]

Wednesday, August 1, 2001

Senate Approves FY02 DOT Appropriations Bill
AAAE/ACI-NA


After a lengthy and contentious debate on Mexican trucks, the Senate finally
approved its version of the FY 2002 DOT Appropriations bill by a voice vote
around 4:15 today.

While this is certainly good news, there are still procedural hurdles that
the Senate must work through before proceeding to a House/Senate conference.
As we reported earlier, Senator McCain, who along with Senator Phil Gramm
had held the bill hostage over the Mexican truck issue, indicated he will
block the conference unless the truck issue is worked out over the August
recess. We'll keep you posted on those developments.

Now back to the good news for airports. The Senate passed bill includes full
funding for a number of airport priorities and important provisions on
cost-free space and airport funding of project-specific FAA staff and
consultants on key capacity projects, among others. The following is an
outline of airport priorities followed by a summary of both House and Senate
action on those priorities. As you will recall, the House approved its
version of the legislation on June 26 on a 426-1 vote.

AAAE/ACI-NA FY 2002 Appropriations Priorities

Full Funding of $3.3 billion for the Airport Improvement Program
House: AIP is fully funded at $3.3 billion.

Senate: AIP is fully funded at $3.3 billion. Of those funds, $64.5 million
is made available for administration of the program ($57 million) and
airport technology research ($7.5 million). The Committee adopted the
Administration's proposal to utilize AIP funds to make up for shortfalls in
overflight fee collections to fund the Essential Air Service program as
well.

Full Funding of $2.914 billion for the FAA Facilities and Equipment Account
House: F&E is fully funded at $2.914 billion.

Senate: F&E is fully funded at $2.914 billion.

Airport Funding of Project-Specific Staff or Consultants (Part of EASE)
The House Appropriations Committee-passed bill included a General Provision
allowing airports to fund project-specific FAA staff or consultants to
expedite the review and approval of key capacity projects such as runways.
The provision was dropped on the House floor because of opposition from the
authorizing committee on jurisdictional grounds.

Senate: Includes General Provision allowing airports to fund
project-specific FAA staff or consultants for key capacity projects.

FAA Use of Space in Airport-Owned Facilities
House: Includes General Provision (identical to last year's) prohibiting the
FAA from moving forward on implementing a new policy on cost-free space
through FY02.

Senate: General Provision included.

Full Funding of $27.5 million for the Small Community Air Service
Development Program
House: The House Appropriations Committee-passed bill included $10 million
in funding for the Program to be made available from the Small Airport Fund
within AIP. The authorizing committee eliminated funding for the program
from the bill during House consideration because the money was to come from
AIP.

Senate: $20 million is included for the Program. The money DOES NOT come
from AIP, strengthening chances for funding in conference.

Funding for the Essential Air Service Program
House: Includes $63 million for EAS, an additional $13 million over last
year's funding level, which will allow the 18 communities targeted by the
Bush Administration for elimination from the program to remain.

Senate: Only $50 million is made available for the Program. As mentioned
above, AIP funds can be used to cover shortfalls in overflight fees.

Full Funding for the Contract Tower Program and Contract Tower Cost-Sharing
Program
House: The Contract Tower Program was fully funded at $70.5 million. Also,
$6 million was included for the Cost-Sharing Program.

Senate: Same.

Funding for Aircraft Noise Research
House: The bill provides $27.6 million for aircraft noise research, an
increase of $20 million above the budget estimate. In explaining the
significant increase in funding, the Appropriations Committee noted that it
is concerned that necessary airport infrastructure cannot be expanded in
some locations due to community concerns over aircraft noise.

Senate: The Administration's request of $7.6 million is available for noise
research. The Committee did, however, instruct the FAA to work with NASA to
conduct a study on aircraft engine noise reduction technology research as
recommended by AAAE/ACI-NA.

Funding for Aviation-Related Research and Development
House: The Committee appropriated $191 million for research and development.

Senate: $195.8 million.

Other Items of Note:

FAA Operations
House: FAA Operations was funded at $6.87 billion.

Senate: $6.916 billion.

Administration of FAA Airports Office
House: Authorizers objected to provisions that would have funded the
administration of the FAA Airports Office from AIP funds, as has been done
for the past two years. Under the House-passed bill, the Airports Office
will be funded from the FAA Operations account.

Senate: Administration of the program would come from AIP as mentioned
above.

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