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116th Congress     }                                    {       Report
                        HOUSE OF REPRESENTATIVES
 2d Session        }                                    {      116-464

======================================================================



 
        EXPEDITED DELIVERY OF AIRPORT INFRASTRUCTURE ACT OF 2020

                                _______
                                

 July 29, 2020.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

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

                              R E P O R T

                        [To accompany H.R. 5912]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Transportation and Infrastructure, to whom 
was referred the bill (H.R. 5912) to amend title 49, United 
States Code, to permit the use of incentive payments to 
expedite certain federally financed airport development 
projects, having considered the same, reports favorably thereon 
without amendment and recommends that the bill do pass.

                                CONTENTS

Purpose of Legislation...........................................     2
Background and Need for Legislation..............................     2
Hearings.........................................................     2
Legislative History and Consideration............................     2
Committee Votes..................................................     3
Committee Oversight Findings.....................................     3
New Budget Authority and Tax Expenditures........................     3
Congressional Budget Office Cost Estimate........................     3
Performance Goals and Objectives.................................     5
Duplication of Federal Programs..................................     5
Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
  Benefits.......................................................     5
Federal Mandates Statement.......................................     5
Preemption Clarification.........................................     5
Advisory Committee Statement.....................................     5
Applicability to Legislative Branch..............................     5
Section-by-Section Analysis of the Legislation...................     5
Changes in Existing Law Made by the Bill, as Reported............     6

                         Purpose of Legislation

    The purpose of H.R. 5912 is to permit airports to use 
Airport Improvement Program (AIP) funds to make incentive 
payments to contractors for early completion of airport 
development and planning projects.

                  Background and Need for Legislation

    H.R. 5912 seeks to incentivize early completion of 
federally funded airport improvement projects. The AIP--a grant 
program administered by the Federal Aviation Administration 
(FAA)--is a key source of funding for the planning and 
development of public-use airports in the United States. AIP 
funds are often used for airside infrastructure projects, such 
as runway, taxiway, or apron construction or reconstruction. 
While necessary and beneficial, these projects can sometimes 
have a significant effect on an airport's operations and its 
users. H.R. 5912 could help alleviate these effects by 
permitting airports to use AIP funds to make incentive payments 
to contractors for early completion of certain airport 
development and planning projects.

                                Hearings

    For the purposes of section 103(i) of H. Res. 6 of the 
116th Congress the following hearing was used to develop or 
consider H.R. 5912:
    A Full Committee hearing ``The Cost of Doing Nothing: Why 
Investing in Our Nation's Airports Matters'' was held on March 
26, 2019. The purpose of the hearing was to explore the state 
of U.S. airport infrastructure and opportunities for Congress 
to increase funding for projects that will rehabilitate and 
modernize this aging infrastructure and prepare for anticipated 
passenger demand in the coming years. The Committee received 
testimony from Mr. Lawrence J. Krauter, Chief Executive 
Officer, Spokane International Airport; Ms. Tori Barnes, 
Executive Vice President, Public Affairs and Policy, U.S. 
Travel Association; Ms. Candace S. McGraw, Chief Executive 
Officer, Cincinnati/Northern Kentucky International Airport; 
Mr. Joseph W. Lopano, Chief Executive Officer, Tampa 
International Airport; Mr. Ted Christie, Chief Executive 
Officer and President, Spirit Airlines, Inc.; and Mr. Marc 
Scribner, Senior Fellow, Competitive Enterprise Institute.

                 Legislative History and Consideration

    H.R. 5912 was introduced on February 14, 2020, by 
Congressman Sam Graves (R-MO) and Congressman Garret Graves (R-
LA), and referred to the Committee on Transportation and 
Infrastructure. Within the Committee, H.R. 5912 was referred to 
the Subcommittee on Aviation.
    On February 26, 2020, the Chair discharged the Subcommittee 
on Aviation from further consideration of H.R. 5912.
    On February 26, 2020, the Committee on Transportation and 
Infrastructure met in open session to consider H.R. 5912 and 
ordered the measure to be reported favorably to the House, 
without amendment, by voice vote, a quorum being present.

                            Committee 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 and on 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 
consideration of H.R. 5912.

                      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.

               New Budget Authority and Tax Expenditures

    Clause 3(c)(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.

               Congressional Budget Office Cost Estimate

    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 enclosed cost estimate for H.R. 5912 from the 
Director of the Congressional Budget Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, June 23, 2020.
Hon. Peter A. DeFazio,
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. 5912, the 
Expedited Delivery of Airport Infrastructure Act of 2020.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Aaron 
Krupkin.
            Sincerely,
                                         Phillip L. Swagel,
                                                          Director.
    Enclosure.

              [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
    

    The Airport Improvement Program (AIP) provides grants to 
airport sponsors for capital improvement projects related to 
airport safety, capacity, and security. H.R. 5912 would expand 
the definition of eligible AIP project costs for future grants 
to include contractor incentive payments. The payments would be 
capped at the lesser of $1 million or 5 percent of the 
project's contract value.
    H.R. 5912 would not provide additional contract authority 
(a mandatory form of budget authority) for the AIP or increase 
the program's existing obligation limitations. Under current 
law, however, airport sponsors are authorized to use funds from 
other Federal Aviation Administration (FAA) grants for 
contractor incentive payments, including those newly provided 
under the CARES Act (Public Law 116-136).
    In addition, based on information from the agency, CBO 
expects that the FAA would need to develop guidelines and amend 
grant language in order to implement the bill's provisions. CBO 
estimates that the cost to do so would not be significant. 
Accordingly, CBO estimates that implementing the bill would 
have no significant effect on discretionary spending.
    The CBO staff contact for this estimate is Aaron Krupkin. 
The estimate was reviewed by H. Samuel Papenfuss, Deputy 
Director of Budget Analysis.

                    Performance Goals and Objectives

    With respect to the requirement of clause 3(c)(4) of rule 
XIII of the Rules of the House of Representatives, the 
performance goal and objective of this legislation is to permit 
airports to use AIP funds to make incentive payments to 
contractors to expedite certain airport development and 
planning projects in the United States.

                    Duplication of Federal Programs

    Pursuant to clause 3(c)(5) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that no provision 
of H.R. 5912 establishes or reauthorizes a program of the 
federal government known to be duplicative of another federal 
program, a program that was included in any report from the 
Government Accountability Office to Congress pursuant to 
section 21 of Public Law 111-139, or a program related to a 
program identified in the most recent Catalog of Federal 
Domestic Assistance.

   Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
                                Benefits

    In compliance with clause 9 of rule XXI of the Rules of the 
House of Representatives, this bill, as reported, contains no 
congressional earmarks, limited tax benefits, or limited tariff 
benefits as defined in clause 9(e), 9(f), or 9(g) of the rule 
XXI.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of 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).

                        Preemption Clarification

    Section 423 of the Congressional Budget Act of 1974 
requires the report of any Committee on a bill or joint 
resolution to include a statement on the extent to which the 
bill or joint resolution is intended to preempt state, local, 
or tribal law. The Committee finds that H.R. 5912 does not 
preempt any state, local, or tribal law.

                      Advisory Committee Statement

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

                  Applicability to 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).

             Section-by-Section Analysis of the Legislation


Sec. 1. Short title

    This section provides that this bill may be cited as the 
``Expedited Delivery of Airport Infrastructure Act of 2020''.

Sec. 2. Allowable cost standards for airport development projects

    This section would permit airports to use AIP funds to make 
incentive payments to contractors for early completion of an 
airport planning or development project. This authority is 
conditioned on the following:
           the payment does not exceed the lesser of 
        five percent of the initial project or $1 million;
           the contractor's actions to shorten the 
        duration of the project do not negatively affect the 
        operation of the airport;
           the contract details the application of the 
        incentive structure in the event of unforeseeable, non-
        weather delays beyond control of the contractor;
           nothing in any agreement with the contractor 
        prevents the airport from maintaining responsibility 
        for the safety, efficiency, and capacity of the 
        airport; and
           the Secretary of Transportation determines 
        that the use of an incentive payment is likely to 
        increase airport capacity or efficiency as a result of 
        the project's early completion.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) 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 italics, and existing law in which no 
change is proposed is shown in roman):

                      TITLE 49, UNITED STATES CODE




           *       *       *       *       *       *       *
SUBTITLE VII--AVIATION PROGRAMS

           *       *       *       *       *       *       *


PART B--AIRPORT DEVELOPMENT AND NOISE

           *       *       *       *       *       *       *


CHAPTER 471--AIRPORT DEVELOPMENT

           *       *       *       *       *       *       *



SUBCHAPTER I--AIRPORT IMPROVEMENT

           *       *       *       *       *       *       *



Sec. 47110. Allowable project costs

  (a) General Authority.--Except as provided in section 47111 
of this title, the United States Government may pay or be 
obligated to pay, from amounts appropriated to carry out this 
subchapter, a cost incurred in carrying out a project under 
this subchapter only if the Secretary of Transportation decides 
the cost is allowable.
  (b) Allowable Cost Standards.--A project cost is allowable--
          [(1) if the cost necessarily] (1)(A) if the cost 
        necessarily  is incurred in carrying out the project in 
        compliance with the grant agreement made for the 
        project under this subchapter, including any cost a 
        sponsor incurs related to an audit the Secretary 
        requires under section 47121(b) or (d) of this title 
        and any cost of moving a Federal facility impeding the 
        project if the rebuilt facility is of an equivalent 
        size and type[;]; or
          (B) if the cost is an incentive payment incurred in 
        carrying out the project described in subparagraph (A) 
        that is to be provided to a contractor upon early 
        completion of a project, if--
                  (i) such payment does not exceed the lesser 
                of 5 percent of the initial construction 
                contract amount or $1,000,000;
                  (ii) the level of contractor's control of, or 
                access to, the worksite necessary to shorten 
                the duration of the project does not negatively 
                impact the operation of the airport;
                  (iii) the contract specifies application of 
                the incentive structure in the event of 
                unforeseeable, non-weather delays beyond the 
                control of the contractor;
                  (iv) nothing in any agreement with the 
                contractor prevents the airport operator from 
                retaining responsibility for the safety, 
                efficiency, and capacity of the airport during 
                the execution of the grant agreement; and
                  (v) the Secretary determines that the use of 
                an incentive payment is likely to increase 
                airport capacity or efficiency as a result of 
                shortening the project's duration;
          (2)(A) if the cost is incurred after the grant 
        agreement is executed and is for airport development or 
        airport planning carried out after the grant agreement 
        is executed;
          (B) if the cost is incurred after June 1, 1989, by 
        the airport operator (regardless of when the grant 
        agreement is executed) as part of a Government-approved 
        noise compatibility program (including project 
        formulation costs) and is consistent with all 
        applicable statutory and administrative requirements;
          (C) if the Government's share is paid only with 
        amounts apportioned under paragraphs (1) and (2) of 
        section 47114(c) or section 47114(d)(3)(A) and if the 
        cost is incurred--
                  (i) after September 30, 1996;
                  (ii) before a grant agreement is executed for 
                the project; and
                  (iii) in accordance with an airport layout 
                plan approved by the Secretary and with all 
                statutory and administrative requirements that 
                would have been applicable to the project if 
                the project had been carried out after the 
                grant agreement had been executed; or
          (D) if the cost is for airport development and is 
        incurred before execution of the grant agreement, but 
        in the same fiscal year as execution of the grant 
        agreement, and if--
                  (i) the cost was incurred before execution of 
                the grant agreement because the airport has a 
                shortened construction season due to climatic 
                conditions in the vicinity of the airport;
                  (ii) the cost is in accordance with an 
                airport layout plan approved by the Secretary 
                and with all statutory and administrative 
                requirements that would have been applicable to 
                the project if the project had been carried out 
                after execution of the grant agreement, 
                including submission of a complete grant 
                application to the appropriate regional or 
                district office of the Federal Aviation 
                Administration;
                  (iii) the sponsor notifies the Secretary 
                before authorizing work to commence on the 
                project;
                  (iv) the sponsor has an alternative funding 
                source available to fund the project; and
                  (v) the sponsor's decision to proceed with 
                the project in advance of execution of the 
                grant agreement does not affect the priority 
                assigned to the project by the Secretary for 
                the allocation of discretionary funds;
          (3) to the extent the cost is reasonable in amount;
          (4) if the cost is not incurred in a project for 
        airport development or airport planning for which other 
        Government assistance has been granted;
          (5) if the total costs allowed for the project are 
        not more than the amount stated in the grant agreement 
        as the maximum the Government will pay (except as 
        provided in section 47108(b) of this title);
          (6) if the cost is for a project not described in 
        section 47102(3) for acquiring for use at a commercial 
        service airport vehicles and ground support equipment 
        owned by an airport that include low-emission 
        technology, but only to the extent of the incremental 
        cost of equipping such vehicles or equipment with low-
        emission technology, as determined by the Secretary; 
        and
          (7) if the cost is incurred on a measure to improve 
        the efficiency of an airport building (such as a 
        measure designed to meet one or more of the criteria 
        for being considered a high-performance green building 
        as set forth under section 401(13) of the Energy 
        Independence and Security Act of 2007 (42 U.S.C. 
        17061(13))) and--
                  (A) the measure is for a project for airport 
                development;
                  (B) the measure is for an airport building 
                that is otherwise eligible for construction 
                assistance under this subchapter; and
                  (C) if the measure results in an increase in 
                initial project costs, the increase is 
                justified by expected savings over the life 
                cycle of the project.
  (c) Certain Prior Costs as Allowable Costs.--The Secretary 
may decide that a project cost under subsection (b)(2)(A) of 
this section incurred after May 13, 1946, and before the date 
the grant agreement is executed is allowable if it is--
          (1) necessarily incurred in formulating an airport 
        development project, including costs incurred for field 
        surveys, plans and specifications, property interests 
        in land or airspace, and administration or other 
        incidental items that would not have been incurred 
        except for the project; or
          (2) necessarily and directly incurred in developing 
        the work scope of an airport planning project.
  (d) Relocation of Airport-Owned Facilities.--The Secretary 
may determine that the costs of relocating or replacing an 
airport-owned facility are allowable for an airport development 
project at an airport only if--
          (1) the Government's share of such costs will be paid 
        with funds apportioned to the airport sponsor under 
        section 47114(c)(1) or 47114(d);
          (2) the Secretary determines that the relocation or 
        replacement is required due to a change in the 
        Secretary's design standards; and
          (3) the Secretary determines that the change is 
        beyond the control of the airport sponsor.
  (e) Letters of Intent.--(1) The Secretary may issue a letter 
of intent to the sponsor stating an intention to obligate from 
future budget authority an amount, not more than the 
Government's share of allowable project costs, for an airport 
development project (including costs of formulating the 
project) at a primary or reliever airport. The letter shall 
establish a schedule under which the Secretary will reimburse 
the sponsor for the Government's share of allowable project 
costs, as amounts become available, if the sponsor, after the 
Secretary issues the letter, carries out the project without 
receiving amounts under this subchapter.
  (2) Paragraph (1) of this subsection applies to a project--
          (A) about which the sponsor notifies the Secretary, 
        before the project begins, of the sponsor's intent to 
        carry out the project;
          (B) that will comply with all statutory and 
        administrative requirements that would apply to the 
        project if it were carried out with amounts made 
        available under this subchapter; and
          (C) that meets the criteria of section 47115(d) and, 
        if for a project at a commercial service airport having 
        at least 0.25 percent of the boardings each year at all 
        such airports, the Secretary decides will enhance 
        system-wide airport capacity significantly.
  (3) A letter of intent issued under paragraph (1) of this 
subsection is not an obligation of the Government under section 
1501 of title 31, and the letter is not deemed to be an 
administrative commitment for financing. An obligation or 
administrative commitment may be made only as amounts are 
provided in authorization and appropriation laws.
  (4) The total estimated amount of future Government 
obligations covered by all outstanding letters of intent under 
paragraph (1) of this subsection may not be more than the 
amount authorized to carry out section 48103 of this title, 
less an amount reasonably estimated by the Secretary to be 
needed for grants under section 48103 that are not covered by a 
letter.
  (5) Letters of intent.--The Secretary may not require an 
eligible agency to impose a passenger facility charge under 
section 40117 in order to obtain a letter of intent under this 
section.
  (6) Limitation on statutory construction.--Nothing in this 
section shall be construed to prohibit the obligation of 
amounts pursuant to a letter of intent under this subsection in 
the same fiscal year as the letter of intent is issued.
  (7) Partnership [Program Airports] program airports.--The 
Secretary may issue a letter of intent under this section to an 
airport sponsor with an approved application under section 
47134(b) if--
          (A) the application was approved in fiscal year 2019; 
        and
          (B) the project meets all other requirements set 
        forth in this chapter.
  (f) Nonallowable Costs.--Except as provided in subsection (d) 
of this section and section 47118(f) of this title, a cost is 
not an allowable airport development project cost if it is 
for--
          (1) constructing a public parking facility for 
        passenger automobiles;
          (2) constructing, altering, or repairing part of an 
        airport building, except to the extent the building 
        will be used for facilities or activities directly 
        related to the safety of individuals at the airport;
          (3) decorative landscaping; or
          (4) providing or installing sculpture or art works.
  (g) Use of Discretionary Funds.--A project for which cost 
reimbursement is provided under subsection (b)(2)(C) shall not 
receive priority consideration with respect to the use of 
discretionary funds made available under section 47115 of this 
title even if the amounts made available under paragraphs (1) 
and (2) of section 47114(c) or section 47114(d)(3)(A) are not 
sufficient to cover the Government's share of the cost of the 
project.
  (h) Nonprimary Airports.--The Secretary may decide that the 
construction costs of revenue producing aeronautical support 
facilities are allowable for an airport development project at 
a nonprimary airport if the Government's share of such costs is 
paid only with funds apportioned to the airport sponsor under 
section 47114(d)(3)(A) and if the Secretary determines that the 
sponsor has made adequate provision for financing airside needs 
of the airport.
  (i) Bird-Detecting Radar Systems.--The Administrator of the 
Federal Aviation Administration, upon the conclusion of all 
planned research by the Administration regarding avian radar 
systems, shall--
          (1) update Advisory Circular No. 150/5220-25 to 
        specify which systems have been studied; and
          (2) within 180 days after such research is concluded, 
        issue a final report on the use of avian radar systems 
        in the national airspace system.

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