[Congressional Record Volume 153, Number 142 (Monday, September 24, 2007)]
[House]
[Pages H10718-H10720]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
FEDERAL AVIATION ADMINISTRATION EXTENSION ACT OF 2007
Mr. LEVIN. Mr. Speaker, I move to suspend the rules and pass the bill
(H.R. 3540) to amend the Internal Revenue Code of 1986 to extend the
funding and expenditure authority of the Airport and Airway Trust Fund,
as amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 3540
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Federal Aviation
Administration Extension Act of 2007''.
SEC. 2. EXTENSION OF TAXES FUNDING AIRPORT AND AIRWAY TRUST
FUND.
(a) Fuel Taxes.--Subparagraph (B) of section 4081(d)(2) of
the Internal Revenue Code of 1986 is amended by striking
``September 30, 2007'' and inserting ``December 31, 2007''.
(b) Ticket Taxes.--
(1) Persons.--Clause (ii) of section 4261(j)(1)(A) of such
Code is amended by striking ``September 30, 2007'' and
inserting ``December 31, 2007''.
(2) Property.--Clause (ii) of section 4271(d)(1)(A) of such
Code is amended by striking ``September 30, 2007'' and
inserting ``December 31, 2007''.
(c) Effective Date.--The amendments made by this section
shall take effect on October 1, 2007.
SEC. 3. EXTENSION OF AIRPORT AND AIRWAY TRUST FUND
EXPENDITURE AUTHORITY.
(a) In General.--Paragraph (1) of section 9502(d) of the
Internal Revenue Code of 1986 is amended--
(1) by striking ``October 1, 2007'' and inserting ``January
1, 2008'', and
(2) by inserting ``or the Federal Aviation Administration
Extension Act of 2007'' before the semicolon at the end of
subparagraph (A).
(b) Conforming Amendment.--Paragraph (2) of section 9502(f)
of such Code is amended by striking ``October 1, 2007'' and
inserting ``January 1, 2008''.
(c) Effective Date.--The amendments made by this section
shall take effect on October 1, 2007.
SEC. 4. EXTENSION OF AIRPORT IMPROVEMENT PROGRAM.
(a) Authorization of Appropriations.--
(1) In general.--Section 48103 of title 49, United States
Code, is amended--
(A) by striking ``and'' at the end of paragraph (3);
(B) by striking the period at the end of paragraph (4) and
inserting ``; and''; and
(C) by inserting after paragraph (4) the following:
``(5) $918,750,000 for the 3-month period beginning October
1, 2007.''.
(2) Obligation of amounts.--Sums made available pursuant to
the amendment made by paragraph (1) may be obligated at any
time through September 30, 2008, and shall remain available
until expended.
(b) Project Grant Authority.--Section 47104(c) of such
title is amended by striking ``September 30, 2007,'' and
inserting ``December 31, 2007,''.
SEC. 5. EXTENSION OF AUTHORITY TO LIMIT THIRD PARTY LIABILITY
OF AIR CARRIERS ARISING OUT OF ACTS OF
TERRORISM.
Section 44303(b) of title 49, United States Code, is
amended by striking ``December 31, 2006'' and inserting
``December 31, 2007''.
SEC. 6. FEDERAL AVIATION ADMINISTRATION OPERATIONS.
Section 106(k)(1) of title 49, United States Code, is
amended--
(1) by striking ``and'' at the end of subparagraph (C);
(2) by striking the period at the end of subparagraph (D)
and inserting ``; and''; and
(3) by inserting after subparagraph (D) the following:
``(E) such sums as may be necessary for the 3-month period
beginning October 1, 2007.''.
SEC. 7. AIR NAVIGATION FACILITIES AND EQUIPMENT.
Section 48101(a) of title 49, United States Code, is
amended--
(1) by striking ``and'' at the end of paragraph (3);
(2) by striking the period at the end of paragraph (4) and
inserting ``; and''; and
(3) by inserting after paragraph (4) the following:
``(5) such sums as may be necessary for the 3-month period
beginning October 1, 2007.''.
SEC. 8. RESEARCH, ENGINEERING, AND DEVELOPMENT.
Section 48102(a) of title 49, United States Code, is
amended--
(1) by striking ``and'' at the end of paragraph (11)(L);
(2) by striking the period at the end of paragraph (12)(L)
and inserting ``; and''; and
(3) by adding at the end the following:
``(13) such sums as may be necessary for the 3-month period
beginning October 1, 2007.''.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Michigan (Mr. Levin) and the gentleman from Missouri (Mr. Hulshof) each
will control 20 minutes.
The Chair recognizes the gentleman from Michigan.
General Leave
Mr. LEVIN. Mr. Speaker, I ask unanimous consent that all Members may
have 5 legislative days within which to revise and extend their remarks
and include extraneous material on H.R. 3540.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Michigan?
There was no objection.
Mr. LEVIN. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, H.R. 3540 extends the financing and spending authority
of the Airport and Airway trust fund.
The trust fund taxes and spending authority are scheduled to expire
on October 1, 2007. H.R. 3540 extends these taxes at current rates for
3 months. H.R. 3540 was unanimously reported out of the Ways and Means
Committee with bipartisan support. This bill will keep the Airport and
Airway trust fund taxes and operations in place until the long-term FAA
Reauthorization Act is signed into law.
Congressional Budget Office Cost Estimate--September 21, 2007
H.R. 3540
Federal Aviation Administration Extension Act of 2007--As
ordered reported by the House Committee on Ways and Means on
September 18, 2007
Summary: H.R. 3540 would extend, through the end of
calendar year 2007, the existing taxes that are dedicated to
the Airport and Airway Trust Fund and are set to expire on
September 30, 2007. The Joint Committee on Taxation (JCT)
estimates that enacting H.R. 3540 would have no effect on
revenues relative to the current baseline projection for
taxes dedicated to the trust fund.
The bill also would extend, through the end of calendar
year 2007, the authority to expend amounts from the trust
fund (including interest) for major programs administered by
the Federal Aviation Administration (FAA). CBO estimates that
implementing the bill would increase discretionary spending
by $3.1 billion over the 2008-2012 period by authorizing
appropriation of revenues expected to be collected during
[[Page H10719]]
the first three months of fiscal year 2008. Enacting the bill
would not affect direct spending.
JCT has determined that the bill contains no
intergovernmental or private-sector mandates as defined in
the Unfunded Mandates Reform Act (UMRA).
Estimated costs to the Federal Government: The estimated
budgetary impact of H.R. 3540 is shown in the following
table. The costs of this legislation fall within budget
function 400 (transportation).
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-----------------------------------------------------
2007 2008 2009 2010 2011 2012
----------------------------------------------------------------------------------------------------------------
SPENDING SUBJECT TO APPROPRIATION
Spending from the Airport and Airway Trust Fund under
Current Law:
Authorization Level \1\............................... 11,846 0 0 0 0 0
Estimated Outlays..................................... 12,310 4,714 1,944 744 214 35
Proposed Changes:
Estimated Authorization Level \2\..................... 0 3,091 0 0 0 0
Estimated Outlays..................................... 0 2,782 278 31 0 0
Spending from the Airport and Airway Trust Fund under H.R.
3540:
Estimated Authorization Level......................... 11,846 3.091 0 0 0 0
Estimated Outlays..................................... 12,310 7,496 2,222 775 214 35
----------------------------------------------------------------------------------------------------------------
\1\ The 2007 level is the amount of discretionary budgetary resources provided from the Airport and Airway Trust
Fund for that year for major FAA programs. Discretionary budgetary resources include appropriations for FAA
operations, facilities and equipment, and research programs as well as limitations on the obligations of
contract authority for the Airport Improvement Program. It does not include additional amounts appropriated to
the FAA from the General Fund.
\2\ The estimated level is for one-quarter of fiscal year 2008. If funded for the full year, that amount would
total approximately $12.4 billion.
Basis of estimate: For this estimate, JCT and CBO assume
that H.R. 3540 will be enacted near the start of fiscal year
2008 and that appropriation actions consistent with the bill
will be taken in fiscal year 2008.
revenues
The existing excise taxes that are dedicated to the Airport
and Airway Trust Fund are scheduled to expire on September
30, 2007. The taxes consist of levies on transportation of
persons and property by air, use of international air
facilities, and use of aviation fuels and are estimated to
generate revenues of over $11 billion in fiscal year 2007.
The bill would extend all of the taxes at the current rate
through the end of calendar year 2007.
Under the projection rules in section 257 of the Balanced
Budget and Emergency Deficit Control Act, which are followed
for Congressional scorekeeping purposes, estimates of the
revenue effects of the legislation assume that expiring
excise taxes dedicated to a trust fund are extended
indefinitely and are measured relative to a baseline that
assumes that the expiring excise taxes are extended at the
same rates that would be in place immediately before their
scheduled expiration. As a result, JCT estimates no change in
revenue from the three-month extension in this bill.
Spending Subject to Appropriation
By extending, through the first three months of fiscal year
2008, the authority to expend amounts from the Airport and
Airway Trust Fund, CBO estimates that the bill would
authorize appropriations of the amounts that CBO estimates
would be deposited in the fund during that three-month
period--about $3.1 billion. Assuming appropriation action
consistent with the bill, CBO estimates that implementing
H.R. 3540 would increase discretionary spending by $3.1
billion over the 2008-2012 period. (If the funding were
authorized for the entire fiscal year, it would yield a total
annualized amount of $12.4 billion.)
Intergovernmental and private-sector impact: JCT has
determined that the bill contains no intergovernmental or
private-sector mandates as defined in UMRA.
Previous CBO estimate: On September 18, 2007, CBO
transmitted a cost estimate for H.R. 3539, the Airport and
Airway Trust Fund Financing Act of 2007, as ordered reported
by the House Committee on Ways and Means on September 18,
2007. Differences in JCT's estimates of revenues result from
provisions in H.R. 3539 that would increase the excise tax
rates on noncommercial aviation-grade kerosene and aviation
gasoline. JCT also determined that increasing the tax rate on
aviation-grade kerosene would impose a private-sector mandate
as defined in UMRA. In addition, CBO's estimate of
discretionary spending under H.R. 3539 reflects the four-year
authorization contained in that bill.
Estimate prepared by: Federal Revenues: Barbara Edwards;
Federal Spending: Megan Carroll.
Estimate approved by: Peter H. Fontaine, Assistant Director
for Budget Analysis; G. Thomas Woodward, Assistant Director
for Tax Analysis.
Mr. Speaker, I reserve the balance of my time.
Mr. HULSHOF. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise in support of H.R. 3540, the Federal Aviation
Administration Extension Act of 2007. As the gentleman, my colleague on
the Ways and Means Committee, indicated, this bill is a 3-month
extension of the excise taxes that currently fund the Airport and
Airway trust fund.
Time is of the essence, as the Speaker knows, as these taxes are due
to expire at the end of the month, and it is imperative that we do not
cut off this source of funding that benefits our Nation's airports and
the aviation community, as well as the tens of thousands of airline
passengers. I see my colleague from Illinois nodding, and we shared a
plane ride here moments ago.
In addition, there has been a lot of discussion about a way to
reformulate the way we fund the trust fund. There have been some
interesting ideas bandied about by different points of view. This
temporary extension allows us that additional time to consider some
fundamental reforms to the tax structure that finances the Airport and
Airway trust fund and to spend some more time studying the NextGen air
traffic control modernization proposal before we move towards
conference with the Senate to consider FAA reauthorization.
As the gentleman from Michigan pointed out, this bill was reported
out of our committee by voice vote. Since it extends to the end of the
calendar year the existing taxes dedicated to the trust fund, there is
no effect on revenues as we extend the current baseline. I urge my
colleagues to vote ``yes'' on the bill.
Mr. Speaker, I reserve the balance of my time.
Mr. LEVIN. Mr. Speaker, I yield such time as he may consume to my
distinguished colleague, the gentleman from Illinois (Mr. Costello).
Mr. COSTELLO. Mr. Speaker, I rise today in support of H.R. 3540, the
FAA Extension Act of 2007.
I want to thank Chairman Rangel, Ranking Member McCrery, and my
friends from Michigan and Missouri on the Ways and Means Committee, as
well as the ranking member of the Transportation and Infrastructure
Committee, Mr. Mica, and Mr. Petri, the ranking member of the
subcommittee.
Last Thursday, the House passed H.R. 2881, the FAA Reauthorization
Act of 2007, a long-term authorization of the FAA programs. However,
until H.R. 2881 is signed into law, it is imperative that we not allow
the FAA's critical programs to lapse. This legislation before us today
would extend the aviation trust fund taxes for an additional 3 months
at their current rate.
During our last funding debate 10 years ago, there was a lapse in the
aviation taxes. At that time, the uncommitted balance of the trust fund
was sufficient to continue funding our aviation program and services
without significant disruption to the system. Today we do not have that
luxury. The trust fund balances cannot sustain a long-term lapse in
taxes, which is why it is critical that we pass this legislation before
us today.
In addition to extending the aviation taxes, H.R. 3540 extends the
Airport Improvement Program. Because the AIP is funded by contract
authority rather than discretionary appropriations, funding for it is
not automatically extended by continuing resolutions. H.R. 3540 creates
$918.75 million in AIP contract authority to fund the programs for the
next 3 months from October 1, 2007 through December 31, 2007. When
annualized, this equates to $3.675 billion for the full fiscal year of
2008, which is the current baseline level for this program. This will
ensure that airport funding is not interrupted due to a lapse in the
AIP authorization.
This is not the first time we have passed a short-term extension. In
1999 and 2000, as Congress was debating what eventually became the
Wendell H. Ford Aviation Investment and Reform Act for the 21st
Century, or AIR-21, we passed four extensions of the FAA's contract
authority.
For FAA's operations, facilities and equipment, and research and
development programs, the bill authorizes the appropriation of such
sums as may be necessary for a 3-month period of this extension.
[[Page H10720]]
Finally, current law allows the Secretary to limit to $100 million
the third-party liability exposure of airlines and aircraft
manufacturers for any cause resulting from a terrorist event. This
authority expires on September 30, 2007. The legislation before us
today extends this authority to December 31 of this year.
Aviation is too important to our Nation's economy, contributing $1.2
trillion in output and approximately 11.4 million U.S. jobs. It is too
important to allow for any lapse of taxes or funding for critical
aviation programs. Until H.R. 2881 is signed into law, we must ensure
that the FAA has the funds it needs to continue its vital programs.
Mr. Speaker, H.R. 3540 provides a short 3-month extension to ensure
FAA's programs remain fully funded, and I urge my colleagues to support
this legislation.
Mr. HULSHOF. Mr. Speaker, I am pleased to yield such time as he may
consume to the gentleman from Wisconsin (Mr. Petri), the ranking member
of the Aviation Subcommittee.
Mr. PETRI. Mr. Speaker, I thank my colleague from Missouri.
Last week, Members of this body considered and passed the FAA
Reauthorization Act of 2007, H.R. 2881, which reauthorized the FAA for
the next 4 years.
Unfortunately, the authority of the FAA's programs and taxes expires
this Sunday, September 30. As it is unlikely Congress will be able to
send a FAA reauthorization bill to the President for signature before
the September 30 deadline, we have before us H.R. 3540, the Federal
Aviation Administration Extension Act of 2007, to extend the funding
and expenditure authority of the FAA for the next 90 days through the
end of this year.
H.R. 3540 provides 3 months of AIP contract authority at the budget
2007 level, authorizes such sums as are necessary for FAA facilities
and equipment, research and development, and operations for 3 months
and extends the authority to limit the third-party liability of air
carriers arising out of acts of terrorism for 3 months.
Most importantly, the bill will ensure that our national aviation
system continues to operate until a full FAA reauthorization can be
enacted.
There is much work yet to be done on the reauthorization bill. We
must work in a bipartisan and bicameral fashion to craft legislation
that our President can sign. That's our task. That is what the
communities involved and our constituents expect of us.
I support this clean 3-month extension, and I appreciate the efforts
of my colleagues on the Ways and Means Committee for drafting and
introducing H.R. 3540, and look forward to working with them as we
continue consideration of the FAA reauthorization bill.
Mr. OBERSTAR. Mr. Speaker, I rise in strong support of H.R. 3540, the
``Federal Aviation Administration Extension Act of 2007.''
The current authorization for aviation programs and taxes expires on
September 30, 2007. Last week, the House overwhelmingly passed H.R.
2881, the ``FAA Reauthorization Act of 2007,'' to reauthorize the
aviation programs for four years. Until this long-term reauthorization
bill can be signed into law, there are a few critical provisions that
must not be allowed to lapse at the end of this week. These important
provisions are extended in H.R. 3540, the bill before us today.
I strongly support the extension of the aviation excise taxes as
proposed in H.R. 3540. These taxes are necessary to support the Airport
and Airway Trust Fund, which in recent years has provided about 80
percent of the Federal Aviation Administration's budget. With an
uncommitted cash balance of less than $2 billion, any lapse in the
aviation taxes could put the solvency of the Trust Fund at risk.
In addition to extending the aviation taxes, H.R. 3540 extends the
Airport Improvement Program. Because the Airport Improvement Program is
funded by contract authority, rather than discretionary appropriations,
funding for it is not automatically extended by Continuing Resolutions.
H.R. 3540 creates $918.75 million in Airport Improvement Program
contract authority to fund the program for the three-month period from
October 1, 2007, to December 31, 2007. This amount, when annualized,
equals the fiscal year 2007 amount for the program ($3.675 billion).
This provision will ensure that airport funding is not interrupted
because of a lapse in the Airport Improvement Program's authorization.
The bill also authorizes the appropriation of such sums as may be
necessary for Federal Aviation Administration Operations, Facilities
and Equipment, and Research and Development programs for the three-
month period of the extension.
Finally, current law allows the Secretary to limit to $100 million
the third-party liability exposure of airlines and aircraft
manufacturers for any cause resulting from a terrorist event. This
authority expires September 30, 2007. H.R. 3540 extends this authority
to December 31, 2007.
In summary, this bill simply continues aviation programs and
financing under the same terms and conditions as current law. It
ensures that these important programs continue to operate without any
interruption.
I thank Chairman Rangel and Ranking Member McCrery of the Committee
on Ways and Means for working with the Committee on Transportation and
Infrastructure to include the aviation authorization provisions in H.R.
3540. I also thank my Committee colleagues, Ranking Member Mica,
Subcommittee Chairman Costello, and Subcommittee Ranking Member Petri,
for working with me on this critical legislation.
I look forward to Senate passage of its long-term FAA reauthorization
bill and sending a bill to the President in the coming months.
I urge my colleagues to join me in supporting H.R. 3540.
Mr. HULSHOF. We have no other speakers remaining, and I urge my
colleagues to vote ``yes,'' and I yield back the balance of my time.
Mr. LEVIN. Mr. Speaker, there being no further requests on this side
of the aisle, I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Michigan (Mr. Levin) that the House suspend the rules
and pass the bill, H.R. 3540, as amended.
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill, as amended, was passed.
The title was amended so as to read: ``A bill to amend the Internal
Revenue Code of 1986 to extend the funding and expenditure authority of
the Airport and Airway Trust Fund, and for other purposes.''.
A motion to reconsider was laid on the table.
____________________