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106th Congress                                                   Report
  1st Session           HOUSE OF REPRESENTATIVES                  106-3

_______________________________________________________________________



 
    TEMPORARY EXTENSION OF FEDERAL AVIATION ADMINISTRATION PROGRAMS

                                _______
                                

February 2, 1999.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______


 Mr. Shuster, from the Committee on Transportation and Infrastructure, 
                        submitted the following

                              R E P O R T

                         [To accompany H.R. 99]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Transportation and Infrastructure, to whom 
was referred the bill (H.R. 99) to amend title 49, United 
States Code, to extend Federal Aviation Administration programs 
through September 30, 1999, and for other purposes, having 
considered the same, report favorably thereon with an amendment 
and recommend that the bill as amended do pass.
    The amendment (stated in terms of the page and line number 
of the introduced bill) is as follows:
    Page 2, line 1, strike `` `$2,347,000,000'' and insert `` 
`$2,410,000,000''.
    Last year, the Committee approved legislation (H.R. 4057, 
H. Rept. 105-639) that would have reauthorized the Federal 
Aviation Administration's (FAA) Airport Improvement Program 
(AIP), the Facilities and Equipment (F&E;) account, and the 
Operations and Maintenance (O&M;) account for 1 year and made 
numerous substantive changes in the aviation laws. This 
legislation passed the House on August 4, 1998. However, it was 
not enacted because it could not be reconciled with similar 
Senate legislation (S. 2279).
    To ensure that the AIP program did not lapse, a short-term 
extension was included in the Omnibus Consolidated and 
Emergency Supplemental Appropriations Act for Fiscal Year 1999 
(P.L. 105-277, See H. Rept. 105-825, at 608). This legislation 
provided contract authority for the AIP program for only 6 
months, conditioned obligation beyond $975 million on 
additional contract authority and did not reauthorized O&M; or 
F&E; at all. Those programs were appropriated money and 
therefore continued without an authorization.
    The 6-month AIP reauthorization means that FAA will not be 
able to issue airport grants after March 31, 1999. But, more 
importantly, it also cuts in half the funds that would 
otherwise be able for such grants.
    The practical effect of the Omnibus bill is to limit AIP 
spending to $975 million. This is a dramatic reduction from the 
$1.7 billion available in 1998 for AIP grants and the $1.95 
billion that would be available in 1999 if the program were 
authorized for a full year. This comes at a time when air 
travel is increasing significantly and airport needs are 
estimated to be about $10 billion per year. However, there is 
sufficient funds available in the Airport and Airway Trust Fund 
to meet those needs, but they cannot be released without this 
authorization.
    The Committee plans to approve legislation (H.R. 111) that 
will ``unlock'' the Trust Fund and ensure that the revenue 
collected will actually be spent on airport and airway 
improvements. It is the Committee's goal to pass this 
legislation by the end of March 1999 to ensure that there is no 
lapse in the AIP program.
    However, recognizing the vagaries of the legislative 
process, the Committee wants to make sure that there will be no 
lapse should H.R. 111, or similar legislation, not be enacted 
by the end of March, 1999, Therefore,the reported bill (H.R. 
99) would reauthorize and provide contract authority for the FAA's 1999 
AIP program for the remainder of the fiscal year and authorize the O&M; 
and F&E; accounts for fiscal year 1999. Enactment of this legislation 
will allow FAA to make grants for airport improvements after March 31, 
1999 and provide the full $1.95 billion for important safety and 
security, capacity enhancing, and noise reduction improvements.
    The reported bill also eliminates the cap and floor on the 
discretionary fund in 49 U.S.C. 47115(g), which were imposed at 
a time when AIP funding was lower than it's current level. The 
floor was intended to ensure that FAA would have enough 
discretionary money to pay for high priority airport 
improvement projects when funding was low. The cap was designed 
to ensure that programs that seemed to be shortchanged at the 
lower funding levels, namely noise abatement, military 
airports, and general aviation airports, would receive 
additional AIP money if funding levels increased slightly.
    However, with the recent higher funding levels, and with 
even higher levels anticipated as a result of H.R. 111, there 
is no longer a need for a floor on the discretionary fund. 
Moreover, noise abatement, military, and general aviation 
airport programs received, and will probably continue to 
receive, increases in fund consistent with last year's 
reauthorization bill. The Committee may also consider even 
higher entitlements and set-asides for general aviation 
airports and noise abatement during the upcoming multi-year AIP 
reauthorization. Further, this cap has prevented FAA from using 
discretionary money to fund more high priority safety and 
capacity projects. Therefore, it makes sense to eliminate both 
the floor and the cap at this time.

                       Section-by-Section Summary

Section 1. Airport Improvement Program

    Subsection (a) authorizes contract authority for the FAA 
Airport Improvement Program at $2,410,000,000.
    Subsection (b) reauthorizes the contract authority for the 
AIP through September 30, 1999, the current fiscal year.

Section 2. Airway Facilities Improvement Program

    This section authorizes appropriations for the FAA air 
traffic control facilities & equipment program at 
$2,131,000,000 for the fiscal year 1999.

Section 3. FAA operations

    Subsection (a) authorizes appropriations for FAA operations 
and maintenance at $5,632,000,000 for fiscal year 1999.
    Subsection (b) reauthorizes through fiscal year 2000, the 
formula that calculates the amount of the general fund payment 
and the amount that the Aviation Trust Fund may contribute to 
the FAA's Operations account.
    Subsection (c) continues the limitation on obligating funds 
from the Aviation Trust Fund to those cases where 49 U.S.C. 
48104 (the formula that calculates the amount of trust fund 
money that may be contributed to FAA operations) is expressly 
amended.

Section 4. AIP discretionary fund

    This language removes the cap and floor on AIP 
discretionary funds.

                    Hearings and Legislative History

    H.R. 99 was introduced on January 6, 1999. The Committee 
has not held hearings on the reported legislation.

                        Committee Consideration

    On January 7, 1999, the Committee met in open session, 
discharged the Aviation Subcommittee and ordered the bill 
reported, with an amendment, by voice vote with a quorum 
present. There were no recorded votes taken during Committee 
consideration of H.R. 99.

                              Record Votes

    Clause 3(b) of Rule XIII of the Rules of the House of 
Representatives requires each committee report to include the 
total number of votes cast for and against on each record vote 
on a motion to report andon any amendment offered to the 
measure or matter, and the names of those members voting for and 
against. There were no recorded votes taken in connection with ordering 
H.R. 99 reported. A motion by Mr. Duncan to order H.R. 99 favorably 
reported to the House, with amendment, was agreed to by voice vote, a 
quorum being present.

                      Committee Oversight Findings

    With respect to the requirements of clause 3(c)(1) of Rule 
XIII of the Rules of the House of Representatives, the 
Committee's oversight findings and recommendations are 
reflected in this report.

                        Cost of the Legislation

    Clause 3(d)(2) of Rule XIII of the Rules of the House of 
Representatives does not apply where a cost estimate and 
comparison prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act of 
1974 has been timely submitted prior to the filing of the 
report and is included in the report. Such a cost estimate is 
included in this report.

                    Compliance With House Rule XIII

    1. With respect to the requirement of clause 3(c)(2) of 
Rule XIII of the Rules of the House of Representatives, and 
section 308(a) of the Congressional Budget Act of 1974, the 
Committee references the report of the Congressional Budget 
Office included below.
    2. With respect to the requirement of clause 3(c)(4) of 
Rule XIII of the Rules of the House of Representatives, the 
Committee has received no report of oversight findings and 
recommendations from the Committee on Government Reform on the 
subject of H.R. 99.
    3. With respect to the requirement of clause 3 (c)(3) of 
Rule XIII of the Rules of the House of Representatives and 
section 402 of the Congressional Budget Act of 1974, the 
Committee has received the following cost estimate for H.R. 99 
from the Director of the Congressional Budget Office.

                                     U.S. Congress,
                               Congressional Budget Office,
                                  Washington, DC, January 28, 1999.
Hon. Bud Shuster,
Chairman, Committee on Transportation and Infrastructure, House of 
        Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 99, a bill to 
amend Title 49, United States Code, to extend Federal Aviation 
Administration programs through September 30, 1999, and for 
other purposes.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Victoria V. 
Heid.
            Sincerely,
                                              James L. Blum
                                   (For June E. O'Neill, Director).
    Enclosure.

               CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

H.R. 99--A bill to amend Title 49, United States Code, to extend 
        Federal Aviation Administration programs through September 30, 
        1999, and for other purposes

    Summary: H.R. 99 would authorize funding for certain 
programs conducted by the Federal Aviation Administration (FAA) 
through September 30, 1999. This bill would authorize the 
appropriation of $7,763 million in 1999 for FAA operations, 
facilities, and equipment. To date, $7,563 million has been 
appropriated this year for those programs. CBO estimates that 
if the additional $200 million is appropriated, outlays for FAA 
operations, facilities, and equipment would increase by $82 
million in 1999 and by $200 million over the 1999-2002 period.
    H.R. 99 also would provide an additional $1,205 million of 
contract authority to the airport improvement program (AIP); 
therefore, pay-as-you-go procedures would apply to the bill. 
However, providing this contract authority would have no impact 
on outlays from direct spending because the baseline assumes 
such funding and because AIP outlays are subject to 
appropriation action.
    H.R. 99 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would impose no costs on state, local, or tribal 
governments.
    Estimated Cost to the Federal Government: The estimated 
budgetary impact of H.R. 99 is shown in the following table. 
The costs of this legislation fall within budget function 400 
(transportation).

----------------------------------------------------------------------------------------------------------------
                                                                  By fiscal years, in millions of dollars--
                                                           -----------------------------------------------------
                                                              1999     2000     2001     2002     2003     2004
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION
 
Spending Under Current Law:
    Budget Authority \1\..................................    7,563        0        0        0        0        0
    Estimated Outlays.....................................    5,535    1,448      400      180        0        0
Proposed Changes:
    Authorization Level...................................      200        0        0        0        0        0
    Estimated Outlays.....................................       82       66       32       20        0        0
Total Spending Under H.R. 99:
    Authorization Level...................................    7,763        0        0        0        0        0
    Estimated Outlays.....................................    5,617    1,514      432      200        0        0
 
                                                 DIRECT SPENDING

Baseline Spending Under Current Law:
    Estimated Budget Authority \2\........................    2,410    2,410    2,410    2,410    2,410    2,410
Proposed Changes:
    Estimated Budget Authority............................        0        0        0        0        0        0
Total Spending Under H.R. 99:
    Estimated Budget Authority............................    2,410    2,410    2,410    2,410    2,410    2,410
----------------------------------------------------------------------------------------------------------------
\1\ The 1999 level is the amount appropriated for that year.
\2\ Budget authority for AIP is provided as contract authority, a mandatory form of budget authority, however,
  outlays from AIP contract authority are subject to obligation limitations contained in appropriations acts and
  are therefore discretionary. CBO's December 1998 baseline assumes a full year of budget authority will be
  provided for AIP for fiscal year 1999 and for subsequent years. The full-year total is double the half-year
  amount of $1,205 million provided thus far for 1999.

    Basis of estimate: For purposes of this estimate, CBO 
assumes that H.R. 99 will be enacted by March 31, 1999, and 
that the full amounts authorized for FAA operations, 
facilities, and equipment will be appropriated by June 1, 1999.

Spending subject to appropriation

    H.R. 99 would authorize the appropriation of $5,632 million 
for FAA operations in fiscal year 1999. The Omnibus 
Consolidated and Emergency Supplemental Appropriations Act for 
fiscal year 1999 (Public Law 105-277) provided $5,563 million 
in budget authority for FAA operations. Thus, this bill would 
authorize the appropriation of an additional $69 million for 
operations in fiscal year 1999.
    H.R. 99 also would authorize appropriations of $2,131 
million for air navigation facilities and equipment in fiscal 
year 1999. Public Law 105-277 provided $2,000 million in budget 
authority for FAA facilities and equipment. Thus, this bill 
would authorize an additional $131 million for fiscal year 1999 
for facilities and equipment.
    CBO's estimate of outlays assumes that the additional 
funding for operations would be disbursed at the normal rate 
for the account (88 percent in 1999), but that the funds for 
facilities and equipment would be spent mostly in 2000 and 
2001.

Direct spending

    H.R. 99 would provide $1,205 million in contract authority 
(a mandatory form of budget authority) for the airport 
improvement program for the second half of fiscal year 1999; it 
also would extend the authority of the Secretary of 
Transportation to incur obligations to make grants under that 
program.
    Under current law, $1,205 million in AIP contract authority 
is available for obligation until March 31, 1999. H.R. 99 would 
provide an additional $1,205 million in contract authority, 
which could be obligated during the second half of the fiscal 
year (until September 30, 1999). Pursuant to the Budget 
Enforcement Act, baseline projections assume that a full year 
of contract authority will be provided for AIP in fiscal year 
1999 and subsequent years. Therefore, enacting H.R. 99 would 
have no net impact on AIP contract authority relative to the 
baseline. Expenditures from AIP contract authority are governed 
by obligation limitations contained in appropriation acts, and 
thus, they are categorized as discretionary outlays. Enacting 
H.R. 99 would not affect obligation limitations and thus would 
have no direct effect on AIP outlays.
    Pay-as-you-go considerations: The Balanced Budget and 
Emergency Deficit Control Act sets up pay-as-you-go procedures 
for legislation affecting direct spending or receipts. H.R. 99 
would provide an additional $1,205 million in contract 
authority for AIP in fiscal year 1999. Since contract authority 
is a mandatory form of budget authority, it is a form of direct 
spending and pay-as-you-go procedures apply to the bill. Only 
changes in outlays from direct spending and changes in receipts 
have pay-as-you-go effects, and this bill would not affect 
either of those.
    Intergovernmental and private-sector impact: H.R. 99 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on state, local, or 
tribal governments.
    Estimate prepared by: Victoria V. Heid.
    Estimate approved by: Robert A. Sunshine, Deputy Assistant 
Director for Budget Analysis.

                Applicability to the Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act (Public Law 
104-1).

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of the Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act (Public Law 104-4).

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of Rule XIII of the Rules of the 
House of Representatives, committee reports on a bill or joint 
resolution of a public character shall include a statement 
citing the specific powers granted to the Congress in the 
Constitution to enact the measure. The Committee on 
Transportation and Infrastructure finds that Congress has the 
authority to enact this measure pursuant to its powers granted 
under article I, section 8 of the Constitution.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3 of rule XIII of the Rules of the 
House of Representatives, changes in existing law made by the 
bill, as reported, are shown as follows (existing law proposed 
to be omitted is enclosed in black brackets, new matter is 
printed in italic, existing law in which no change is proposed 
is shown in roman):

TITLE 49, UNITED STATES CODE

           *       *       *       *       *       *       *


SUBTITLE I--DEPARTMENT OF TRANSPORTATION

           *       *       *       *       *       *       *


CHAPTER 1--ORGANIZATION

           *       *       *       *       *       *       *


Sec. 106. Federal Aviation Administration

  (a) * * *

           *       *       *       *       *       *       *

  (k) Authorization of Appropriations for Operations.--There is 
authorized to be appropriated to the Secretary of 
Transportation for operations of the Administration 
[$5,158,000,000 for fiscal year 1997 and $5,344,000,000 for 
fiscal year 1998.] $5,632,000,000 for fiscal year 1999.

           *       *       *       *       *       *       *


SUBTITLE VII--AVIATION PROGRAMS

           *       *       *       *       *       *       *


                 PART B--AIRPORT DEVELOPMENT AND NOISE

CHAPTER 471--AIRPORT DEVELOPMENT

           *       *       *       *       *       *       *


SUBCHAPTER I--AIRPORT IMPROVEMENT

           *       *       *       *       *       *       *


Sec. 47104. Project grant authority

  (a) * * *

           *       *       *       *       *       *       *

  (c) Expiration of Authority.--After [March 31, 1999] 
September 30, 1999, the Secretary may not incur obligations 
under subsection (b) of this section, except for obligations of 
amounts--
          (1) remaining available after that date under section 
        47117(b) of this title; or
          (2) recovered by the United States Government from 
        grants made under this chapter if the amounts are 
        obligated only for increases under section 47108(b)(2) 
        and (3) of this title in the maximum amount of 
        obligations of the Government for any other grant made 
        under this title.

           *       *       *       *       *       *       *


Sec. 47115. Discretionary fund

  (a) * * *

           *       *       *       *       *       *       *

  [(g) Minimum Amount To Be Credited.--
          [(1) General rule.--In a fiscal year, there shall be 
        credited to the fund, out of amounts made available 
        under section 48103 of this title, an amount that is at 
        least equal to the sum of--
                  [(A) $148,000,000; plus
                  [(B) the total amount required from the fund 
                to carry out in the fiscal year letters of 
                intent issued before January 1, 1996, under 
                section 47110(e) of this title or the Airport 
                and Airway Improvement Act of 1982.
        The amount credited is exclusive of amounts that have 
        been apportioned in a prior fiscal year under section 
        47114 of this title and that remain available for 
        obligation.
          [(2) Reduction of apportionments.--In a fiscal year 
        in which the amount credited under subsection (a) is 
        less than the minimum amount to be credited under 
        paragraph (1), the total amount calculated under 
        paragraph (3) shall be reduced by an amount that, when 
        credited to the fund, together with the amount credited 
        under subsection (a), equals such minimum amount.
          [(3) Amount of reduction.--For a fiscal year, the 
        total amount available to make a reduction to carry out 
        paragraph (2) is the total of the amounts determined 
        under sections 47114(c)(1)(A), 47114(c)(2), 47114(d), 
        and 47117(e) of this title. Each amount shall be 
        reduced by an equal percentage to achieve the 
        reduction.
          [(4) Special rule.--For a fiscal year in which the 
        amount credited to the fund under this subsection 
        exceeds $300,000,000, the Secretary shall allocate the 
        amount of such excess as follows:
                  [(A) \1/3\ shall be made available to 
                airports for which apportionments are made 
                under section 47114(d) of this title.
                  [(B) \1/3\ shall be made available for 
                airport noise compatibility planning under 
                section 47505(a)(2) of this title and for 
                carrying out noise compatibility programs under 
                section 47504(c)(1) of this title.
                  [(C) \1/3\ shall be made available to current 
                or former military airports for which grants 
                may be made under section 47117(e)(1)(B) of 
                this title.]
  [(h)] (g) Priority for Letters of Intent.--In making grants 
in a fiscal year with funds made available under this section, 
the Secretary shall fulfill intentions to obligate under 
section 47110(e).

           *       *       *       *       *       *       *


                           PART C--FINANCING

CHAPTER 481--AIRPORT AND AIRWAY TRUST FUND AUTHORIZATIONS

           *       *       *       *       *       *       *


Sec. 48101. Air navigation facilities and equipment

  (a) General Authorization of Appropriations.--Not more than a 
total of the following amounts may be appropriated to the 
Secretary of Transportation out of the Airport and Airway Trust 
Fund established under section 9502 of the Internal Revenue 
Code of 1986 (26 U.S.C. 9502) to acquire, establish, and 
improve air navigation facilities under section 44502(a)(1)(A) 
of this title:
          (1) $2,068,000,000 for fiscal year 1997.
          (2) $2,129,000,000 for fiscal year 1998.
          (3) $2,131,000,000 for fiscal year 1999.

           *       *       *       *       *       *       *


Sec. 48103. Airport planning and development and noise compatibility 
                    planning and programs

  The total amounts which shall be available after September 
30, 1998, to the Secretary of Transportation out of the Airport 
and Airway Trust Fund established under section 9502 of the 
Internal Revenue Code of 1986 (26 U.S.C. 9502) to make grants 
for airport planning and airport development under section 
47104 of this title, airport noise compatibility planning under 
section 47505(a)(2) of this title, and carrying out noise 
compatibility programs under section 47504(c) of this title 
shall be [$1,205,000,000 for the six-month period beginning 
October 1, 1998.] $2,410,000,000 for fiscal years ending before 
October 1, 1999.

Sec. 48104. Operations and maintenance

  (a) * * *

           *       *       *       *       *       *       *

  (c) Limitation for [Fiscal Years 1994-1998] Fiscal Years 
1994-2000.--The amount appropriated from the Trust Fund for the 
purposes of paragraphs (1) and (2) of subsection (a) for each 
of fiscal years 1994 through [1998] 2000 may not exceed the 
lesser of--
          (1) * * *

           *       *       *       *       *       *       *


Sec. 48108. Availability and uses of amounts

  (a) * * *

           *       *       *       *       *       *       *

  (c) Limitation on Obligating or Expending Amounts.--In a 
fiscal year beginning after September 30, [1998] 2000, the 
Secretary of Transportation may obligate or expend an amount 
appropriated out of the Fund under section 48104 of this title 
only if a law expressly amends section 48104.

           *       *       *       *       *       *       *