As the House was poised for its first reauthorization hearing later today, Democratic leaders in the House Transportation Committee introduced a $70 billion FAA reauthorization bill on Monday in a measure that mirrors the version which easily passed the House two years ago. The House Transportation and Infrastructure Committee hearing is set for 2 pm today and includes a live web cast available here.

HR 915 was introduced by House Transportation Chair James Oberstar and Aviation Subcommittee Chair Jerry Costello, both of whom will push for quick passage as well as in the Senate. Last year, the bill stalled in the Senate over a tax language controversy among other things.

The legislation increases Passenger Facility Charges from $4.50 to $7.00, an increase of 55.6 percent. However, any PFC increase would be subject to an FAA approval process for each project supported by the PFC. It also includes $38.9 billion for operations, $23.4 billion for facilities and equipment and $16.2 billion for the Airport Improvement Program.

These levels are in addition to that provided in the Reinvestment and Recovery Act. Related Story The House stimulus package included $3 billion for airport projects. The senate version includes $1.3 billion for system investments, including $1.1 billion in Airport Improvement Program grants for safety and capacity initiatives; and $200 million to repair or upgrade FAA facilities.

Senate Commerce Committee Chair Jay Rockefeller and Ranking Member Senator Kay Bailey Hutchison, who led the committee in the Republic-controlled Congress, failed in their attempt to insert $550 million in NextGen spending, illustrating yet again how hard it is for critical aviation spending to gain any traction on Capitol Hill.

The funding included in the bill – now known as the Recovery and Reinvestment Act – provided $1.1 billion to accelerate explosive detection system for the Transportation Security Administration to deploy at the 20 top airports, according to Rockefeller Spokesperson Steven Broderick, who added the change of name for the bill illustrates that solutions are long term, not just temporary as suggested by the use of the term stimulus.

Broderick indicated that there is hope that the $550 million will be restored during the conference committee to resolve differences between the House and Senate versions of the act. “In the room there will be people with recognition there is a strong bi-partisan desire for these projects which are not only shovel ready, but shelf ready and will create jobs,” he said. “We are not giving up hope we can get this addressed further down the road. We have a lot of work to do. We’ve tackled Wall Street’s problem and now it is time to tackle Main Street’s problem and the only way to do that is a turn around from the ground up.”

The House Ways and Means Committee has yet to act on how the FAA will be funded, although in 2007 it suggested fuel tax increases. How revenues to fund the agency will be raised is a critical part of the package which has been part of the reason reauthorization has stalled. Indeed, House Transportation and Infrastructure Committee ranking member John Mica opposed the just introduced reauthorization legislation, saying it was a warmed over version of a bill that failed in the last Congress because of controversial proposals that have yet to be resolved. He, and others, also object to language surrounding the intractable dispute between the FAA and controller which forces negotiations on the grounds the costs have risen in the last two years.

Amongst the provisions is a $200 million allocation for the troubled Essential Air Service Program, an increase from $127 million, according to Regional Aviation Partners. It also repeals the requirement for local funding, and reforms the program by increasing the per-passenger subsidy cap. It also extends the Small Community Air Service Development Program (SCASDP) through FY2012 at authorized annual funding of $35 million and sets AIP funding at $3.9 billion for FY09, $4 billion for FY10, $4.1 billion for FY11 and $4.2 billion for FY12.

Oberstar, in a report by the Bemidji Press, indicated he wanted to reform EAS, saying it may be time to re-regulate at least some air service. He asked airport managers in his home state of Minnesota to offer up suggestions on improving competition at small airports, before today’s hearing.
Passage of the decade-old single level of safety, raised the entry bar too high for new airlines which is, apparently being compounded by competition from mainline carriers, which reduce fares at the hint of a new carrier. Locals called such practices monopolistic and pointed to Northwest as being the transgressor in the region.

Oberstar, chair of the U.S. House Transportation and Infrastructure Committee, wants to rewrite the Essential Air Service Program.

“It’s broken, sir,” Bemidji Regional Airport Executive Director Harold Van Leeuwen told Oberstar, according to the newspaper. “It’s being misused by the airlines.” The publication said he was alluding to Northwest’s diverting aircraft from more profitable communities for use in other EAS communities.

“It infuriates me that the outstate airports have to compete with one another,” Chisholm-Hibbing Airport Authority Executive Director Shaun Germolus told the newspaper. “I can’t even get to 10,000 enplanements right now, and my passengers in my region are driving to Duluth to get on, so they can save $150 per ticket.”

The newspaper reported that the Minnesota Local Air Service Action Committee, recommends legislatively mandated divestiture by mainline carriers of airlines serving EAS markets and establishing an oversight/regulatory body or agency. The recommendation resulted from Northwest lowering its fares when a new carrier – Bemidji Airlines – proposed to start up.

“Prohibit through absolute clear distinction and rules, agreements between main and regional carriers (with) distinct financial, management and ownership separations,” said the panel. “Limit EAS to only regionals and establish clear accountability for expense and use of EAS funds.”

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