Congressional Debate on FAA Reauthorization Charts New Legislative Path

On January 27, Bill Shuster, chairman of the House Committee on Transportation and Infrastructure, announced that he will no longer insist on restructuring of Federal Aviation Administration (FAA) air traffic control operations in conjunction with reauthorization of FAA and other federal civil aviation programs. Representative Shuster's statement clears the way for House and Senate negotiators to reconcile other differences between House and Senate bills that would reauthorize FAA and other aviation programs.

There are numerous other differences between H.R. 2997, reported by the Transportation and Infrastructure Committee in September 2017, and S. 1405, ordered reported by the Senate Committee on Commerce, Science, and Transportation in June 2017. Disagreement regarding air traffic control reforms has stalled action on a long-term FAA bill, leading the 114^th Congress to approve a one-year aviation extension (P.L. 114-190) that expired at the end of FY2017 and the 115^th Congress to adopt a subsequent six-month extension (P.L. 115-63) that will expire atApril 27, 2018, the House passed the FAA Reauthorization Act of 2018 (H.R. 4), a six-year reauthorization measure that does not include a controversial proposal laid out in an earlier bill, H.R. 2997, to privatize air traffic control. The measure now proceeds to the Senate, where the Commerce, Science, and Transportation Committee ordered to be reported a four-year Federal Aviation Administration (FAA) reauthorization (S. 1405) that does not address air traffic control privatization. Despite similarities, there are also differences in the two bills, including the length of authorization, funding amounts, and other provisions (see Table 1). The current FAA authorization expires on September 30. If enacted, H.R. 4 would represent the first long-term FAA reauthorization act since the FAA Modernization and Reform Act of 2012 (P.L. 112-95) expired at the end of FY2015. Disagreement regarding air traffic control reforms stalled action on a subsequent long-term FAA bill for almost three years, leading the 114^th Congress to approve a series of extensions, including a one-year extension (P.L. 114-190) that expired at the end of FY2017. The 115^th Congress passed a six-month extension (P.L. 115-63) through the end of March 2018. Subsequently, the Consolidated Appropriations Act, 2018 (P.L. 115-141), further extended aviation programs and airport and airway trust fund revenue authority through the end of FY2018. Table 1. FAA Major Account Funding Authorization ($ millions the end of March 2018.

Whereas S. 1405 would fund FAA programs through FY2021, H.R. 2997 would extend funding through FY2023 (see Table 1). Since the House committee bill provides that the proposed corporation would take over air traffic services starting in FY2021, it would eliminate all Airport and Airway Trust Fund (AATF) financing for FAA operations and air traffic facilities and equipment beyond FY2020. Consequently, taxes on airline tickets, cargo, and commercial fuel would be reduced by roughly 80% starting in FY2020. These temporary tax reductions would expire after FY2023, and would therefore need to be revisited in subsequent FAA reauthorization debate. AATF funding of facilities and equipment not directly tied to air traffic functions and general fund financing of aviation safety programs would continue through FY2023 under the House bill.

Potential Controversy over

Sources: CRS analysis of H.R. 4 and S. 1405.

Key Issues

Airline Pilot Qualifications

. An amendment incorporatedincorporated into the Senate committee's bill would modify training standards for airline pilots, allowing FAA to consider alternatives to the existing 1,500-flight-hour requirement. In particular, the measure would allow FAA to modify the current rules to give credit for "structured and disciplined training courses," instead of strictly adhering to the minimum flight hour criteria. This issue was a source of disagreement within the Commerce Committee, with proponents arguingProponents argue that the increased flexibility could help regional airlines address pilot hiring needs and, while opponents contendingcontend that doing so could erode airline safety improvements made following the February 2009 crash of a commuter flight near Buffalo, NY. Since then there have not been any accidents involving U.S. airliners resulting in passenger fatalities, but the The exact role that the 1,500-flight-hour rule has played in improving airline safety is difficult to say. Senator John Thune, chairman of the Commerce Committee, has reportedly suggested a willingness to drop the issue in order to move the FAA reauthorization measure forward.

• While both the House and Senate committee billsFAA reauthorization forward. H.R. 4 does not contain a similar provision.
• Air Carrier and Repair Station Oversight. Recent media coverage has raised questions about FAA's risk-based approaches to air carrier oversight and regulatory compliance among operators and contract maintenance facilities. Provisions in H.R. 4 seek to formalize internal FAA processes for conducting comparative analyses of airlines' safety data and would direct the Government Accountability Office to access the effectiveness of FAA's "Compliance Philosophy" and how it balances nonpunitive alternatives to promote safety culture with imposition of enforcement penalties when safety violations occur.
Regulation of Unmanned Aircraft. While both H.R. 4 and the Senate committee bill pave the way for delivery services using small drones and facilitate small commercial drone operations in low-altitude airspace, both bills would continue to limit FAA's authority to regulate model aircraft and drones operated strictly for hobby or recreation.
• The House committee bill includes a significant increase in discretionary funding for However, H.R. 4 would allow FAA to regulate recreational drones capable of sustained operations beyond-visual-line-of-sight and would direct FAA to issue rules requiring certain recreational operators to complete computer-based training and obtain prior authorization to access certain airspace. The bill also would direct FAA to implement remote drone detection technologies and a system to report suspected violations in an effort to help enforce drone regulations.
• Airport Improvement Program (AIP). In addition to the annual AIP funding of $3.35 billion, H.R. 4 would add a new supplemental funding authorization for AIP discretionary funds from general fund appropriations, starting in FY2019 with $1.02 billion and rising to $1.11 billion in FY2023. Funds would be used for eligible projects, excluding those at large hub airports.
Essential Air Service (EAS). H.R. 4 would authorize discretionary funding for EAS, starting at $155 million for FY2018 and rising to $172 million for FY2023. It also would require the Comptroller General to conduct a study on the impact of EAS reform options. The Senate committee bill would authorize annual appropriations for EAS (EAS) starting in FY2021 to make up for the absence of overflight fees that would no longer be collected by FAA after the proposed air traffic control reform. The Senate committee bill authorizes appropriations for EAS at an annual level of $175 million for FY2018-FY2021, unchanged from the amount appropriated in FY2017. However, the Trump Administration's FY2019 budget seeks to scale back the program.
• Passenger Facility Charges. Both bills would ease restrictions on the ability of airports to impose passenger facility charges to fund airport improvements. However, the current limit of $4.50 per flight segment would remain unchanged. Airline Consumer Issues. .
• Both bills address complaints about crowding aboard airplanes. H.R. 2997The House committee bill would require FAA to issue regulations establishing minimum dimensions for passenger seats, including legroom, within one year of enactment. . S. 1405 would require FAA to initiate a study of minimum seat pitch within 18 months of enactment and review whether changes in seat size and legroom affect the ability to evacuate an aircraft in an emergency. Both bills address the needs of passengers with disabilities as well as consumer complaint process improvement. H.R. 4 would make involuntary bumping of passengers after boarding an unfair and deceptive practice. It also would allow an air carrier to advertise base airfare rather than the final cost to the passenger, as long as it discloses additional taxes and fees via a link on its website. Such practice is currently deemed "unfair and deceptive" by a Department of Transportation consumer protection rule.