[Senate Report 116-219]
[From the U.S. Government Publishing Office]


                                                      Calendar No. 434
116th Congress     }                                    {       Report
                                 SENATE
 2d Session        }                                    {      116-219
_______________________________________________________________________

                                     

 

                WAR RISK INSURANCE EXTENSION ACT OF 2019

                               __________

                              R E P O R T

                                 of the

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                                   on

                                S. 2964






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               February 27, 2020.--Ordered to be printed
               
                               __________

                      U.S. GOVERNMENT PUBLISHING OFFICE
                      
99-010                     WASHINGTON : 2020 
               
               














               
               
               
               
               
       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
                     one hundred sixteenth congress
                             second session

                 ROGER F. WICKER, Mississippi, Chairman
JOHN THUNE, South Dakota             MARIA CANTWELL, Washington
ROY BLUNT, Missouri                  AMY KLOBUCHAR, Minnesota
TED CRUZ, Texas                      RICHARD BLUMENTHAL, Connecticut
DEB FISCHER, Nebraska                BRIAN SCHATZ, Hawaii
JERRY MORAN, Kansas                  EDWARD J. MARKEY, Massachusetts
DAN SULLIVAN, Alaska                 TOM UDALL, New Mexico
CORY GARDNER, Colorado               GARY C. PETERS, Michigan
MARSHA BLACKBURN, Tennessee          TAMMY BALDWIN, Wisconsin
SHELLEY MOORE CAPITO, West Virginia  TAMMY DUCKWORTH, Illinois
MIKE LEE, Utah                       JON TESTER, Montana
RON JOHNSON, Wisconsin               KYRSTEN SINEMA, Arizona
TODD C. YOUNG, Indiana               JACKY ROSEN, Nevada
RICK SCOTT, Florida
                       John Keast, Staff Director
               David Strickland, Minority Staff Director





















                                                      Calendar No. 434
116th Congress     }                                    {       Report
                                 SENATE
 2d Session        }                                    {      116-219

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



 
                WAR RISK INSURANCE EXTENSION ACT OF 2019

                                _______
                                

               February 27, 2020.--Ordered to be printed

                                _______
                                

       Mr. Wicker, from the Committee on Commerce, Science, and 
                Transportation, submitted the following

                              R E P O R T

                         [To accompany S. 2964]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill (S. 2964) to amend title 49, United 
States Code, to extend the authority of the Secretary of 
Transportation to issue non-premium aviation insurance, having 
considered the same, reports favorably thereon without 
amendment and recommends that the bill do pass.

                          Purpose of the Bill

    The purpose of S. 2964 is to extend the current authority 
of the Secretary of Transportation to issue non-premium 
aviation insurance until December 31, 2020.

                          Background and Needs

    The Secretary of Transportation is authorized to provide 
insurance to U.S. airlines without premium, commonly known as 
war risk insurance, if the Secretary of Defense or the head of 
another U.S. Government agency agrees to indemnify the 
Secretary of Transportation against all losses covered by the 
insurance.\1\ The authority for the Secretary of Transportation 
to offer this insurance was set to expire on December 31, 
2019.\2\ S. 2964, the War Risk Insurance Extension Act of 2019, 
would extend the current authority until December 31, 2020, but 
would not otherwise modify the underlying authority.
---------------------------------------------------------------------------
    \1\49 U.S.C. 44305.
    \2\49 U.S.C. 44310(b).
---------------------------------------------------------------------------
    War risk insurance is necessary to support the Civil 
Reserve Air Fleet (CRAF) and other air operators performing 
U.S. Government contracts, specifically in support of the 
Department of Defense (DOD). According to the Department of 
Transportation (DOT), the CRAF is a ``cooperative, voluntary 
program involving the DOT, DOD and the U.S. civil air carrier 
industry in a partnership to augment DOD aircraft capability 
during a national defense related crisis''.\3\ In exchange for 
agreeing to volunteer their aircraft for military service 
during wartime, CRAF air carriers receive ``preference in 
carrying commercial peacetime cargo and passenger traffic for 
DOD''.\4\
---------------------------------------------------------------------------
    \3\U.S. Department of Transportation, ``Civil Reserve Airfleet 
Allocations'' (https://www.transportation.gov/mission/administrations/
intelligence-security-emergency-response/civil-reserve-airfleet-
allocations) (accessed Feb. 5, 2020).
    \4\Id.
---------------------------------------------------------------------------

                          Legislative History

    S. 2964, the War Risk Insurance Extension Act of 2019, was 
introduced on December 3, 2019, by Senator Wicker (for himself 
and Senator Cantwell) and was referred to the Committee on 
Commerce, Science, and Transportation of the Senate. On 
December 11, 2019, the Committee met in open Executive Session 
and, by voice vote, ordered S. 2964 reported favorably without 
amendment.
    The National Defense Authorization Act for Fiscal Year 2020 
extended the Secretary of Transportation's authority to offer 
war risk insurance until September 30, 2023. That bill was 
enacted as Public Law 116-92 on December 20, 2019.

                            Estimated Costs

    In accordance with paragraph 11(a) of rule XXVI of the 
Standing Rules of the Senate and section 403 of the 
Congressional Budget Act of 1974, the Committee provides the 
following cost estimate, prepared by the Congressional Budget 
Office:


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    S. 2964 would reauthorize the Federal Aviation 
Administration's (FAA's) Aviation War Risk Insurance Program 
through December 31, 2020. The program provides free insurance 
to certain air carriers engaged in operations that are deemed 
essential to the foreign policy or national security interests 
of the United States.
    Under current law, the FAA is authorized to issue such 
insurance through September 30, 2023. Because the insurance may 
be offered under current law through December 31, 2020, CBO 
estimates that implementing S. 2964 would have no effect on the 
federal budget.
    The CBO staff contact for this estimate is Aaron Krupkin. 
The estimate was reviewed by H. Samuel Papenfuss, Deputy 
Director of Budget Analysis.

                      Regulatory Impact Statement

    Because S. 2964 does not create any new programs, the 
legislation will have no additional regulatory impact, and will 
result in no additional reporting requirements. The legislation 
will have no further effect on the number or types of 
individuals and businesses regulated, the economic impact of 
such regulation, the personal privacy of affected individuals, 
or the paperwork required from such individuals and businesses.

                   Congressionally Directed Spending

    In compliance with paragraph 4(b) of rule XLIV of the 
Standing Rules of the Senate, the Committee provides that no 
provisions contained in the bill, as reported, meet the 
definition of congressionally directed spending items under the 
rule.

                      Section-by-Section Analysis


Section 1. Short title.

    This section would provide that the bill may be cited as 
the ``War Risk Insurance Extension Act of 2019''.

Section 2. Extension of authority.

    This section would extend the current authority of the 
Secretary of Transportation to offer war risk insurance until 
December 31, 2020.

                        Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, 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 
material is printed in italic, existing law in which no change 
is proposed is shown in roman):

                        TITLE 49--TRANSPORTATION


                    SUBTITLE VII--AVIATION PROGRAMS

                    PART A--AIR COMMERCE AND SAFETY

                          SUBPART III--SAFETY

CHAPTER 443--INSURANCE

           *       *       *       *       *       *       *


Sec. 44310. Ending effective date

  (a) In General.--The authority of the Secretary of 
Transportation to provide insurance and reinsurance under any 
provision of this chapter other than section 44305 is not 
effective after December 11, 2014.
  (b) Insurance of United States Government Property.--The 
authority of the Secretary of Transportation to provide 
insurance and reinsurance for a department, agency, or 
instrumentality of the United States Government under section 
44305 is not effective after [December 31, 2019] December 31, 
2020.

           *       *       *       *       *       *       *


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