[House Report 118-194]
[From the U.S. Government Publishing Office]


118th Congress    }                                     {       Report
                        HOUSE OF REPRESENTATIVES
 1st Session      }                                     {      118-194

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



 
 TO AMEND TITLE 49, UNITED STATES CODE, TO EXTEND THE NON-PREMIUM WAR 
                         RISK INSURANCE PROGRAM

                                _______
                                

 September 13, 2023.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

   Mr. Graves of Missouri, from the Committee on Transportation and 
                Infrastructure, submitted the following

                              R E P O R T

                        [To accompany H.R. 4762]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Transportation and Infrastructure, to whom 
was referred the bill (H.R. 4762) to amend title 49, United 
States Code, to extend the non-premium war risk insurance 
program, having considered the same, reports favorably thereon 
without amendment and recommends that the bill do pass.

                                CONTENTS

                                                                   Page
Purpose of Legislation...........................................     2
Background and Need for Legislation..............................     2
Hearings.........................................................     2
Legislative History and Consideration............................     2
Committee Votes..................................................     3
Committee Oversight Findings and Recommendations.................     3
New Budget Authority and Tax Expenditures........................     3
Congressional Budget Office Cost Estimate........................     3
Performance Goals and Objectives.................................     4
Duplication of Federal Programs..................................     4
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
    Section. 1. Non-Premium War Risk Insurance Program Extension.     5
Changes in Existing Law Made by the Bill, as Reported............     5

                         Purpose of Legislation

    The purpose of H.R. 4762 is to extend the authority of the 
Federal Aviation Administration (FAA) to provide non-premium 
war risk insurance to participants in the Civil Reserve Air 
Fleet (CRAF) and other air carriers operating under a Federal 
Government contract through fiscal year (FY) 2025.

                  Background and Need for Legislation

    Following the terrorist attacks on September 11, 2001, 
commercially available aviation war risk insurance premiums 
skyrocketed. As a result, the Federal Government began to offer 
non-premium aviation war risk insurance to air carriers 
operating under a Federal Government contract when commercial 
coverage was not available on reasonable terms. Today, the 
Department of Defense (DOD) and other Federal agencies rely on 
the FAA to provide non-premium war risk insurance to ensure 
that contracted air carriers maintain the ability to meet the 
Federal government and the military's mission objectives and 
operations without disruptions. In the event of an accident, 
claims are paid out from the Aviation Insurance Revolving Fund 
(AIRF) which has a stable balance of $2.4 billion dollars.\1\ 
The FAA currently insures 31 United States air carriers through 
its non-premium war risk insurance program and anticipates 
adding an additional air carrier each fiscal year.\2\
---------------------------------------------------------------------------
    \1\Off. of Mgmt. & Budget, Appendix: Budget of the United States 
Government; Fiscal Year 2024 (2023), at 902, available at https://
www.whitehouse.gov/wp-content/uploads/2023/03/appendix_fy2024.pdf.
    \2\Agency Information Collection Activities: Requests for Comments; 
Clearance of Renewed Approval of Information Collection: Aviation 
Insurance; Notice and request for comments, 87 Fed. Reg. 9413 (February 
18, 2022).
---------------------------------------------------------------------------

                                Hearings

    For the purposes of rule XIII, clause 3(c)(6)(A) of the 
118th Congress, the following hearings were used to develop or 
consider H.R. 4762:
    On February 7, 2023, the Committee on Transportation and 
Infrastructure held a hearing entitled, ``FAA Reauthorization: 
Enhancing America's Gold Standard in Aviation.'' The hearing 
examined regulatory efforts that could be taken to improve 
America's gold standard of aviation safety. The Committee 
received testimony from Mr. David Boulter, Acting Associate 
Administrator for Aviation Safety, Federal Aviation 
Administration; The Honorable Jennifer Homendy, Chair, National 
Transportation Safety Board; Captain Jason Ambrosi, President, 
Air Line Pilots Association; Mr. Pete Bunce, President and 
Chief Executive Officer, General Aviation Manufacturers 
Association; Mr. Ed Bolen, President and Chief Executive 
Officer, National Business Aviation Association; and Ms. Kerry 
Buckley, PHD, Vice President, Center for Advanced Aviation 
System Development, MITRE Corporation.

                 Legislative History and Consideration

    H.R. 4762, ``To amend title 49, United States Code, to 
extend the non-premium war risk insurance program'', was 
introduced in the United States House of Representatives on 
July 20, 2023, by Mr. Yakym of Indiana and Ms. Sykes of Ohio 
and referred to the Committee on Transportation and 
Infrastructure. Within the Committee on Transportation and 
Infrastructure, H.R. 4762 was referred to the Subcommittee on 
Aviation. The Subcommittee on Aviation was discharged from 
further consideration of H.R. 4762 on July 27, 2023.
    The Committee considered H.R. 4762 on July 27, 2023, and 
ordered the measure to be reported to the House with a 
favorable recommendation, without amendment, by voice vote.

                            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.
    No recorded votes were requested during consideration of 
H.R. 4762.

            Committee Oversight Findings and Recommendations

    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. 4762 from the 
Director of the Congressional Budget Office:

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


    H.R. 4762 would reauthorize the Non-premium War Risk 
Insurance Program of the Federal Aviation Administration (FAA) 
through 2025. That program, currently scheduled to expire on 
September 30, 2023, provides free insurance to certain air 
carriers engaged in operations that are deemed essential to 
U.S. foreign policy or national security. The Department of 
Defense indemnifies the FAA against all losses covered under 
the insurance.
    In general, amounts in the Aviation Insurance Revolving 
Fund are available without further appropriation to support the 
program; any associated spending is classified as mandatory. 
That fund currently has about $2.4 billion in unobligated 
balances. In recent years, program claims and administrative 
costs have averaged about $2 million annually. On that basis, 
CBO estimates that enacting H.R. 4762 would increase direct 
spending by $2 million per year through 2025, or $4 million 
over the 2023-2033 period.
    The CBO staff contact for this estimate is Aaron Krupkin. 
The estimate was reviewed by Chad Chirico, Director of Budget 
Analysis.
                                         Phillip L. Swagel,
                             Director, Congressional Budget Office.

                    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 extend 
the non-premium war risk program administered by the FAA.

                    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. 4762 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. 4762 does not 
preempt any state, local, or tribal law.

                      Advisory Committee Statement

    No advisory committees within the definition of Section 
5(b) of the appendix to Title 5, United States Code, are 
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


Section. 1. Non-Premium War Risk Insurance Program Extension

    This section extends the authority of the Federal Aviation 
Administration to offer non-premium aviation war risk insurance 
through fiscal year 2025.

         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 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 sections 44302a and 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 September 30, [2023] 2025.

                                  [all]