House Passes Aviation Reauthorization
Bill; Cap on User Fees Averted

The U.S. House of Representatives yesterday passed a four-year, $68-billion Federal Aviation Administration (FAA) reauthorization bill (H.R. 2881) by a vote of 267 to 151. 

Forty-three Republicans and 224 Democrats supported the bill. 

During floor debate, the House agreed to eight non-controversial amendments, mostly related to aviation safety and labor issues.

Arguably, the debate was more notable for what amendments were not offered, including a proposed amendment by Representatives Ted Poe (R-Texas), Nick Lampson (D-Texas), and Heath Shuler (D-N.C.) to strike the Passenger Facility Charge (PFC) cap increase to $7.00. 

However, Transportation and Infrastructure Committee Chairman Jim Oberstar (D-Minn.) was able to persuade the House Rules Committee not to make the amendment in order, thereby blocking the attempt to disallow what is seen as a much-needed increase.  Republican leaders of the Transportation and Infrastructure Committee supported the PFC increase as well.

The PFC issue is likely to reemerge when the full Senate debates its FAA reauthorization bill (S. 1300).  The Senate Commerce, Science and Transportation Committee cleared the bill earlier this year.  A controversial tax portion of the bill also was approved by the Finance Committee today.  (See related story, " Senate Finance Committee Increases FAA, Highway Trust Funds.")

Aviation programs expire on September 30, 2007, and Congress will need to approve an extension by then to keep programs operating.

Of note to NACA members, the House-passed bill includes a provision reauthorizing the airfield pavement research program.  Similar language is included in the Senate bill.

Contact David Hubbard or Gary Mitchell.

The U.S. Senate Finance Committee this morning voted 16 to 5 in favor of ensuring funds are available for bridge and road repair, including dollars specifically for the Interstate 35 bridge collapse in Minneapolis.

Committee Chairman Max Baucus (D-Mont.) led the markup of the American Infrastructure Investment and Improvement Act, which fills 2009 shortfalls in the Highway Trust Fund (HTF) and reauthorizes the Airport and Airway Trust Fund (AATF).

The Chairman's markup restores $5 billion to the Highway Trust Fund and adds $430 million per year to the AATF to fund the satellite-based air traffic system known as Next Gen.

On the highways side, the Chairman's markup includes the following:

• Replenishing the HTF with $3.4 billion, predicated upon the fact that since 1998, almost that same amount has been spent from the HTF on unforeseen emergencies, such as the September 11, 2001, attacks, as well as several hurricanes.
•  Suspending transfers from the HTF for certain repayments and credits.   This action temporarily discontinues certain miscellaneous fuel-tax credits and other provisions, which will save $745 million for the HTF.
• Anti-fraud provisions, aimed at improving tax law compliance, which are expected to provide $900 million in new funding for the HTF by 2009.

On the air side, the Chairman's markup includes the following:

• An increase in the general aviation jet-fuel tax from $0.218/gal. to $0.360/gal.
• Reclassifying "fractionals" as general aviation aircraft for jet-fuel tax purposes. Fractionals are planes owned by multiple parties who hold shares of ownership.
• An increase in commercial carriers' share of Next Gen Funding via changes in international arrival and departure taxes.

Contact  David Hubbard, Gary Mitchell, or Robert Sullivan.

Congress Continues Hearings on Bridge Conditions

The U.S. House Committee on Science and Technology, as well as the Senate Committee on Environment and Public Works (EPW), held hearings this week on the condition or the nation's bridges. 

The House Science Committee focused on how bridges are inspected and what advances in inspection technologies are available to better identify structural deficiencies before they become catastrophic.
Meanwhile, EPW was concerned about how bridges are funded.  There was general agreement that the funding of bridge maintenance was not a glamorous ribbon-cutting event, as would be the opening of a new bridge, but was a critical element in the operational life of a bridge. 

The Senate discussion followed two tracks, with Democrats focused solely on the need for bridge funding and Republicans addressing the larger issue of the need for more funding for the nation's entire public infrastructure. 

Ranking Member Jim Inhofe (R-Okla.) also mentioned the potential impact of the climate change initiative, now before Congress and its potential impact on the availability of portland cement. 
He said:  "Additionally, I am concerned about the potential impact on repairing our aging infrastructure if the Chairman's proposals on climate change were to become law.  The production of cement produces a lot of CO2 emissions. 

" A tight cap- and-trade program, such as the Boxer/Sanders bill, will force most of our American cement production to go overseas, where their environmental procedures are not as good as ours.  This will result not only in higher CO2 emissions world-wide, but also higher costs for cement here in the US and supply delays.  This will mean our highway dollars will be stretched even thinner."

Contact John Sullivan or David Hubbard.

Senate Judiciary Committee Approves Railroad Antitrust Enforcement Legislation

The Senate Judiciary Committee on Wednesday, by means of a bipartisan voice vote, reported to the full Senate the Railroad Antitrust Enforcement Act of 2007 (S. 772).

Several members of the Committee, while speaking in favor of the bill and voting to report it from the Committee, requested a hearing on the legislation.  A hearing to further examine the issues may be scheduled as early as October 3.  The Judiciary Committee's action is the first time since 1980 that any committee of Congress has reported legislation that changes national rail policy.

S. 772 repeals the outdated railroad exemptions from the nation's antitrust laws so that the antitrust law fully covers railroads, as it does other industries.  The bill also permits the U.S. Justice Department and the Federal Trade Commission to ensure that proposed railroad mergers and acquisitions comply with the nation's antitrust laws. 

Similar legislation was introduced in the House of Representatives and referred to the House Judiciary Committee.  The Committee has not yet scheduled time to consider the bill.  PCA has endorsed this legislation.

On a related matter, the House Transportation and Infrastructure Committee is scheduled on September 25 to hold a hearing on H.R. 2125, the Railroad Competition and Service Act of 2007.  Holcim (US) will testify at the hearing in support of the legislation.

Contact David Hubbard.

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