[Congressional Record (Bound Edition), Volume 153 (2007), Part 18]
[House]
[Pages 25261-25264]
[From the U.S. 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,''.

[[Page 25262]]



     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 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

[[Page 25263]]

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.
  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

[[Page 25264]]

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.

                          ____________________