FAA Reauthorization Comparison As of October 29, 2007

FAA Reauthorization The following is a side-by-side comparison of key issues in the varying FAA reauthorization bills The House of Representatives passed its version of the legislation in late September The U.S. Senate has yet to consider its version on the Senate floor

FAA Reauthorization FAA programs and the taxes that support them have been temporarily extended through November 16, 2007, although a further extension will most likely be necessary

FAA Reauthorization Comparison FAA ProposalHouse Bill (H.R. 2881) Senate Bill (S and Finance Committee Proposal) Fuel Taxes Would raise the general aviation fuel tax for both jet fuel and aviation gasoline to 70 cents per gallon and the commercial fuel tax to 13.6 cents per gallon Would raise the general aviation jet fuel tax to 36 cents per gallon, and the tax on aviation gasoline to 24.2 cents per gallon (no change in the commercial fuel tax) Finance Committee bill would raise the jet fuel tax to 36 cents per gallon, with no additional changes for aviation gasoline or commercial fuel taxes Excise Taxes Would eliminate the 7.5 % commercial tax and cargo waybill tax in favor of a user fee system No changes in existing excise taxes No changes in commercial ticket taxes – minor increase in international ticket taxes User Fees Proposes a vast user fee system, including departure and en route fees, as well as fees for use of congested airspace No user fees included Commerce Committee bill includes $25 per flight fee on all jet aircraft operations and most turboprops Fuel Fraud Not addressed Fuel tax increase would also eliminate the fuel fraud provision of the 2005 Highway Bill

FAA Reauthorization Side-By-Side FAA ProposalHouse Bill (H.R. 2881) Senate Bill (S and Finance Committee Proposal) Fractional OwnershipNo changes addressed Finance Committee bill reclassifies fractional ownership programs as a separate entity; fractional programs would pay the 36 cents per gallon fuel tax plus a $58 per flight departure fee Funding Authorization Levels Provides cuts to FAA programs across the board, including reduced AIP funding Provides $37 billion for FAA operations over four years, and $16 billion for AIP Provides $36 billion for FAA operations over four years, and $16 billion for AIP Registration FeesContains a series of fees for registering aircraft, and obtaining and renewing pilots’ licenses Contains fees similar to that of the FAA’s proposal Not addressed Passenger Facility Charge Increases Raises the cap on PFC collections from $4.50 to $6.00 and expands the number of eligible projects Raises the PFC cap to $7.00, but does not include the expansion of eligible projects No PFC increases

FAA Reauthorization Side-By-Side FAA ProposalHouse Bill (H.R. 2881) Senate Bill (S and Finance Committee Proposal) Foreign Repair StationsNot addressedRequires the FAA to certify that all Part 145 foreign repair stations are inspected by the FAA at least twice a year – also imposes drug testing requirements similar to those of domestic repair stations Not addressed Stage II AircraftNot addressedBans most Stage II aircraft weighing less than 75,000 within five years of the bill’s passage Teterboro Airport (TEB)Not specifically addressedCommittee report expresses support for including TEB as a high-priority airport for installing required navigation performance (RNP) approaches Prevents the FAA from taking action to block Port Authority of New York/New Jersey action regarding weight restriction, essentially codifying the 100,000 pound weight limit currently in place

FAA Reauthorization Side-By-Side FAA ProposalHouse Bill (H.R. 2881) Senate Bill (S and Finance Committee Proposal) Age 60 RuleNot addressed (the FAA is supporting increasing the retirement age, but plans on doing so through rulemaking) Raises the commercial pilot retirement age to 65 under certain conditions Judicial Review of NTSB Decisions Not addressedGrants authority to airmen and the FAA to seek judicial review of NTSB decisions involving orders of suspension, revocation, and civil penalties against airmen Flight Crew FatigueNot addressedRequires a study of pilot fatigue by the National Academy of Sciences

FAA Reauthorization Side-By-Side FAA ProposalHouse Bill (H.R. 2881) Senate Bill (S and Finance Committee Proposal) Helicopter Operations Not addressed Requires several rulemaking initiatives for helicopter emergency medical service providers, including the installation of cockpit voice and data recorders Air Traffic Controllers Dispute Not addressedRequires the FAA and the air traffic controllers union to resume negotiations on a collective bargaining agreement imposed by the FAA in 2006, with the potential for making any new agreement retroactive Amends future collective bargaining procedures to prevent the FAA from unilaterally imposing a contract, but does not mandate re-opening talks on the current contract

Resource Information For more information, and to stay up to date with the latest news on the FAA reauthorization process, visit NATA’s FAA Reauthorization Resource Page  Contact Stephen Beaulieu with any questions 