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Reauthorization of the Federal Aviation Administration (FAA) in the 115Th Congress

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Reauthorization of the Federal Aviation Administration (FAA) in the 115Th Congress Reauthorization of the Federal Aviation Administration (FAA) in the 115th Congress Bart Elias Specialist in Aviation Policy Rachel Y. Tang Analyst in Transportation and Industry November 30, 2017 Congressional Research Service 7-5700 www.crs.gov R44791 Reauthorization of the Federal Aviation Administration (FAA) in the 115th Congress Summary Funding authorization for the Federal Aviation Administration (FAA), included in the FAA Extension, Safety, and Security Act of 2016 (P.L. 114-190), expired at the end of FY2017. A subsequent six-month extension (P.L. 115-63) is set to expire at the end of March 2018. Long- term FAA reauthorization measures (H.R. 2997 and S. 1405) are currently under consideration. In addition to setting spending levels, FAA authorization acts typically set policy on a wide range of issues related to civil aviation. This report considers prominent topics in the 115th Congress reauthorization debate. Most FAA programs are financed through the Airport and Airway Trust Fund (AATF), which is funded by a variety of taxes and fees on air transportation. The financial health of the AATF is generally good. However, airlines’ unbundling of ancillary fees from airfares is adversely affecting AATF revenue, as only base airfares are subject to the ticket tax that is the largest source of revenue for the trust fund. Reductions in AATF revenue would leave FAA more reliant on appropriations from the general fund. Other major issues likely to arise during the reauthorization debate include the following: Air traffic control privatization. Many commissions over the years have recommended moving responsibility for air traffic control from FAA, a government agency, to either an independent government-owned corporation or a private entity controlled by aviation stakeholders. Delays in implementing the satellite-based NextGen air traffic control system have renewed interest in this possibility, although Congress chose not to enact such proposals in 2016. Unmanned aerial vehicles. Large numbers of drones have come into use, and the numerous reports of near-collisions between drones and manned aircraft raise safety concerns. Additionally, Congress has not addressed privacy concerns related to government-operated, commercial, and recreational drones. Essential Airline Service (EAS). Congress has repeatedly attempted to limit the number of localities eligible to participate in this program to subsidize flights to communities that would otherwise lose all commercial airline service, as well as to limit the amount of subsidies per passenger. Few communities have been dropped from the program, and costs continue to rise. Foreign airlines. Some U.S. airlines and airline labor unions seek reconsideration of the recent U.S. approval of a foreign carrier permit for Norwegian Air International, an Ireland-based discount air carrier, to fly across the Atlantic. Some U.S. carriers also have called for renegotiation of U.S. air service agreements with Persian Gulf states amid claims that three fast-growing airlines based in that region are posing unfair competition to U.S. air carriers. Certification reform. FAA relies heavily on aircraft and aircraft parts manufacturers to provide technical expertise in the certification process. FAA oversight has been found to be inconsistent, raising questions regarding safety and efficiency. Equipment manufacturers have raised concerns that FAA’s certification process makes it difficult to bring new products to market in a timely fashion and threatens their international competitiveness. This report does not attempt to be comprehensive. Many issues debated prior to passage of the FAA Extension, Safety, and Security Act of 2016 are not discussed unless further congressional consideration appears probable. Additional issues, not discussed in this report, may arise as Congress moves forward with reauthorization. Congressional Research Service Reauthorization of the Federal Aviation Administration (FAA) in the 115th Congress Contents Introduction ..................................................................................................................................... 1 Aviation Funding ............................................................................................................................. 1 FAA Funding Accounts ............................................................................................................. 2 Airport Financing ............................................................................................................................ 3 Evaluating Capital Needs .......................................................................................................... 4 Airport Improvement Program (AIP) ........................................................................................ 5 AIP Funding ........................................................................................................................ 6 Funding Distribution ........................................................................................................... 8 Entitlements (Formula Funds) ............................................................................................ 8 Discretionary Funds ............................................................................................................ 9 State Block Grant Program ................................................................................................ 11 The Federal Share of AIP Matching Funds ........................................................................ 11 Distribution of AIP Grants by Airport Size ........................................................................ 11 Grant Assurances .............................................................................................................. 12 Passenger Facility Charges ...................................................................................................... 13 Airport Privatization ...................................................................................................................... 15 Types of Airport Privatization ................................................................................................. 16 The Interests at Stake .............................................................................................................. 17 The Airport Privatization Pilot Program (APPP) .......................................................................... 18 Participation in APPP .............................................................................................................. 19 Why Has the APPP Not Stimulated Privatization? ................................................................. 20 APPP Application Process ................................................................................................ 20 Regulatory Conditions and Obligations ............................................................................ 20 Adequate Access to Funding ............................................................................................. 21 Policy Issues Related to Privatization ............................................................................... 22 Aircraft Noise Issues ..................................................................................................................... 22 The Next Generation Air Transportation System (NextGen) ........................................................ 23 NextGen Evolution .................................................................................................................. 24 Elements and Funding ............................................................................................................. 26 Current Status .......................................................................................................................... 27 Aircraft Equipage .............................................................................................................. 27 Anticipated Benefits.......................................................................................................... 28 Policy Concerns ................................................................................................................ 29 FAA Organizational Issues ............................................................................................................ 30 Facility Consolidation ............................................................................................................. 30 The Federal Contract Tower (FCT) Program .......................................................................... 31 Technological Developments Affecting Potential Safety Impacts of Possible Future Tower Closures or Facility Consolidations .......................................................................... 33 Facility Security and Continuity of Operations ....................................................................... 34 Air Traffic Control Privatization ............................................................................................. 35 Controller Selection and Hiring .............................................................................................. 37 Aviation Safety Issues ................................................................................................................... 38 Airline Safety .........................................................................................................................
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