[House Report 116-464]
[From the U.S. Government Publishing Office]
116th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 116-464
======================================================================
EXPEDITED DELIVERY OF AIRPORT INFRASTRUCTURE ACT OF 2020
_______
July 29, 2020.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. DeFazio, from the Committee on Transportation and Infrastructure,
submitted the following
R E P O R T
[To accompany H.R. 5912]
[Including cost estimate of the Congressional Budget Office]
The Committee on Transportation and Infrastructure, to whom
was referred the bill (H.R. 5912) to amend title 49, United
States Code, to permit the use of incentive payments to
expedite certain federally financed airport development
projects, having considered the same, reports favorably thereon
without amendment and recommends that the bill do pass.
CONTENTS
Purpose of Legislation........................................... 2
Background and Need for Legislation.............................. 2
Hearings......................................................... 2
Legislative History and Consideration............................ 2
Committee Votes.................................................. 3
Committee Oversight Findings..................................... 3
New Budget Authority and Tax Expenditures........................ 3
Congressional Budget Office Cost Estimate........................ 3
Performance Goals and Objectives................................. 5
Duplication of Federal Programs.................................. 5
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
Changes in Existing Law Made by the Bill, as Reported............ 6
Purpose of Legislation
The purpose of H.R. 5912 is to permit airports to use
Airport Improvement Program (AIP) funds to make incentive
payments to contractors for early completion of airport
development and planning projects.
Background and Need for Legislation
H.R. 5912 seeks to incentivize early completion of
federally funded airport improvement projects. The AIP--a grant
program administered by the Federal Aviation Administration
(FAA)--is a key source of funding for the planning and
development of public-use airports in the United States. AIP
funds are often used for airside infrastructure projects, such
as runway, taxiway, or apron construction or reconstruction.
While necessary and beneficial, these projects can sometimes
have a significant effect on an airport's operations and its
users. H.R. 5912 could help alleviate these effects by
permitting airports to use AIP funds to make incentive payments
to contractors for early completion of certain airport
development and planning projects.
Hearings
For the purposes of section 103(i) of H. Res. 6 of the
116th Congress the following hearing was used to develop or
consider H.R. 5912:
A Full Committee hearing ``The Cost of Doing Nothing: Why
Investing in Our Nation's Airports Matters'' was held on March
26, 2019. The purpose of the hearing was to explore the state
of U.S. airport infrastructure and opportunities for Congress
to increase funding for projects that will rehabilitate and
modernize this aging infrastructure and prepare for anticipated
passenger demand in the coming years. The Committee received
testimony from Mr. Lawrence J. Krauter, Chief Executive
Officer, Spokane International Airport; Ms. Tori Barnes,
Executive Vice President, Public Affairs and Policy, U.S.
Travel Association; Ms. Candace S. McGraw, Chief Executive
Officer, Cincinnati/Northern Kentucky International Airport;
Mr. Joseph W. Lopano, Chief Executive Officer, Tampa
International Airport; Mr. Ted Christie, Chief Executive
Officer and President, Spirit Airlines, Inc.; and Mr. Marc
Scribner, Senior Fellow, Competitive Enterprise Institute.
Legislative History and Consideration
H.R. 5912 was introduced on February 14, 2020, by
Congressman Sam Graves (R-MO) and Congressman Garret Graves (R-
LA), and referred to the Committee on Transportation and
Infrastructure. Within the Committee, H.R. 5912 was referred to
the Subcommittee on Aviation.
On February 26, 2020, the Chair discharged the Subcommittee
on Aviation from further consideration of H.R. 5912.
On February 26, 2020, the Committee on Transportation and
Infrastructure met in open session to consider H.R. 5912 and
ordered the measure to be reported favorably to the House,
without amendment, by voice vote, a quorum being present.
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.
There were no recorded votes taken in connection with
consideration of H.R. 5912.
Committee Oversight Findings
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. 5912 from the
Director of the Congressional Budget Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, June 23, 2020.
Hon. Peter A. DeFazio,
Chairman, Committee on Transportation and Infrastructure,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 5912, the
Expedited Delivery of Airport Infrastructure Act of 2020.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Aaron
Krupkin.
Sincerely,
Phillip L. Swagel,
Director.
Enclosure.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
The Airport Improvement Program (AIP) provides grants to
airport sponsors for capital improvement projects related to
airport safety, capacity, and security. H.R. 5912 would expand
the definition of eligible AIP project costs for future grants
to include contractor incentive payments. The payments would be
capped at the lesser of $1 million or 5 percent of the
project's contract value.
H.R. 5912 would not provide additional contract authority
(a mandatory form of budget authority) for the AIP or increase
the program's existing obligation limitations. Under current
law, however, airport sponsors are authorized to use funds from
other Federal Aviation Administration (FAA) grants for
contractor incentive payments, including those newly provided
under the CARES Act (Public Law 116-136).
In addition, based on information from the agency, CBO
expects that the FAA would need to develop guidelines and amend
grant language in order to implement the bill's provisions. CBO
estimates that the cost to do so would not be significant.
Accordingly, CBO estimates that implementing the bill would
have no significant effect on discretionary spending.
The CBO staff contact for this estimate is Aaron Krupkin.
The estimate was reviewed by H. Samuel Papenfuss, Deputy
Director of Budget Analysis.
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 permit
airports to use AIP funds to make incentive payments to
contractors to expedite certain airport development and
planning projects in the United States.
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. 5912 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. 5912 does not
preempt any state, local, or tribal law.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were 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
Sec. 1. Short title
This section provides that this bill may be cited as the
``Expedited Delivery of Airport Infrastructure Act of 2020''.
Sec. 2. Allowable cost standards for airport development projects
This section would permit airports to use AIP funds to make
incentive payments to contractors for early completion of an
airport planning or development project. This authority is
conditioned on the following:
the payment does not exceed the lesser of
five percent of the initial project or $1 million;
the contractor's actions to shorten the
duration of the project do not negatively affect the
operation of the airport;
the contract details the application of the
incentive structure in the event of unforeseeable, non-
weather delays beyond control of the contractor;
nothing in any agreement with the contractor
prevents the airport from maintaining responsibility
for the safety, efficiency, and capacity of the
airport; and
the Secretary of Transportation determines
that the use of an incentive payment is likely to
increase airport capacity or efficiency as a result of
the project's early completion.
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 B--AIRPORT DEVELOPMENT AND NOISE
* * * * * * *
CHAPTER 471--AIRPORT DEVELOPMENT
* * * * * * *
SUBCHAPTER I--AIRPORT IMPROVEMENT
* * * * * * *
Sec. 47110. Allowable project costs
(a) General Authority.--Except as provided in section 47111
of this title, the United States Government may pay or be
obligated to pay, from amounts appropriated to carry out this
subchapter, a cost incurred in carrying out a project under
this subchapter only if the Secretary of Transportation decides
the cost is allowable.
(b) Allowable Cost Standards.--A project cost is allowable--
[(1) if the cost necessarily] (1)(A) if the cost
necessarily is incurred in carrying out the project in
compliance with the grant agreement made for the
project under this subchapter, including any cost a
sponsor incurs related to an audit the Secretary
requires under section 47121(b) or (d) of this title
and any cost of moving a Federal facility impeding the
project if the rebuilt facility is of an equivalent
size and type[;]; or
(B) if the cost is an incentive payment incurred in
carrying out the project described in subparagraph (A)
that is to be provided to a contractor upon early
completion of a project, if--
(i) such payment does not exceed the lesser
of 5 percent of the initial construction
contract amount or $1,000,000;
(ii) the level of contractor's control of, or
access to, the worksite necessary to shorten
the duration of the project does not negatively
impact the operation of the airport;
(iii) the contract specifies application of
the incentive structure in the event of
unforeseeable, non-weather delays beyond the
control of the contractor;
(iv) nothing in any agreement with the
contractor prevents the airport operator from
retaining responsibility for the safety,
efficiency, and capacity of the airport during
the execution of the grant agreement; and
(v) the Secretary determines that the use of
an incentive payment is likely to increase
airport capacity or efficiency as a result of
shortening the project's duration;
(2)(A) if the cost is incurred after the grant
agreement is executed and is for airport development or
airport planning carried out after the grant agreement
is executed;
(B) if the cost is incurred after June 1, 1989, by
the airport operator (regardless of when the grant
agreement is executed) as part of a Government-approved
noise compatibility program (including project
formulation costs) and is consistent with all
applicable statutory and administrative requirements;
(C) if the Government's share is paid only with
amounts apportioned under paragraphs (1) and (2) of
section 47114(c) or section 47114(d)(3)(A) and if the
cost is incurred--
(i) after September 30, 1996;
(ii) before a grant agreement is executed for
the project; and
(iii) in accordance with an airport layout
plan approved by the Secretary and with all
statutory and administrative requirements that
would have been applicable to the project if
the project had been carried out after the
grant agreement had been executed; or
(D) if the cost is for airport development and is
incurred before execution of the grant agreement, but
in the same fiscal year as execution of the grant
agreement, and if--
(i) the cost was incurred before execution of
the grant agreement because the airport has a
shortened construction season due to climatic
conditions in the vicinity of the airport;
(ii) the cost is in accordance with an
airport layout plan approved by the Secretary
and with all statutory and administrative
requirements that would have been applicable to
the project if the project had been carried out
after execution of the grant agreement,
including submission of a complete grant
application to the appropriate regional or
district office of the Federal Aviation
Administration;
(iii) the sponsor notifies the Secretary
before authorizing work to commence on the
project;
(iv) the sponsor has an alternative funding
source available to fund the project; and
(v) the sponsor's decision to proceed with
the project in advance of execution of the
grant agreement does not affect the priority
assigned to the project by the Secretary for
the allocation of discretionary funds;
(3) to the extent the cost is reasonable in amount;
(4) if the cost is not incurred in a project for
airport development or airport planning for which other
Government assistance has been granted;
(5) if the total costs allowed for the project are
not more than the amount stated in the grant agreement
as the maximum the Government will pay (except as
provided in section 47108(b) of this title);
(6) if the cost is for a project not described in
section 47102(3) for acquiring for use at a commercial
service airport vehicles and ground support equipment
owned by an airport that include low-emission
technology, but only to the extent of the incremental
cost of equipping such vehicles or equipment with low-
emission technology, as determined by the Secretary;
and
(7) if the cost is incurred on a measure to improve
the efficiency of an airport building (such as a
measure designed to meet one or more of the criteria
for being considered a high-performance green building
as set forth under section 401(13) of the Energy
Independence and Security Act of 2007 (42 U.S.C.
17061(13))) and--
(A) the measure is for a project for airport
development;
(B) the measure is for an airport building
that is otherwise eligible for construction
assistance under this subchapter; and
(C) if the measure results in an increase in
initial project costs, the increase is
justified by expected savings over the life
cycle of the project.
(c) Certain Prior Costs as Allowable Costs.--The Secretary
may decide that a project cost under subsection (b)(2)(A) of
this section incurred after May 13, 1946, and before the date
the grant agreement is executed is allowable if it is--
(1) necessarily incurred in formulating an airport
development project, including costs incurred for field
surveys, plans and specifications, property interests
in land or airspace, and administration or other
incidental items that would not have been incurred
except for the project; or
(2) necessarily and directly incurred in developing
the work scope of an airport planning project.
(d) Relocation of Airport-Owned Facilities.--The Secretary
may determine that the costs of relocating or replacing an
airport-owned facility are allowable for an airport development
project at an airport only if--
(1) the Government's share of such costs will be paid
with funds apportioned to the airport sponsor under
section 47114(c)(1) or 47114(d);
(2) the Secretary determines that the relocation or
replacement is required due to a change in the
Secretary's design standards; and
(3) the Secretary determines that the change is
beyond the control of the airport sponsor.
(e) Letters of Intent.--(1) The Secretary may issue a letter
of intent to the sponsor stating an intention to obligate from
future budget authority an amount, not more than the
Government's share of allowable project costs, for an airport
development project (including costs of formulating the
project) at a primary or reliever airport. The letter shall
establish a schedule under which the Secretary will reimburse
the sponsor for the Government's share of allowable project
costs, as amounts become available, if the sponsor, after the
Secretary issues the letter, carries out the project without
receiving amounts under this subchapter.
(2) Paragraph (1) of this subsection applies to a project--
(A) about which the sponsor notifies the Secretary,
before the project begins, of the sponsor's intent to
carry out the project;
(B) that will comply with all statutory and
administrative requirements that would apply to the
project if it were carried out with amounts made
available under this subchapter; and
(C) that meets the criteria of section 47115(d) and,
if for a project at a commercial service airport having
at least 0.25 percent of the boardings each year at all
such airports, the Secretary decides will enhance
system-wide airport capacity significantly.
(3) A letter of intent issued under paragraph (1) of this
subsection is not an obligation of the Government under section
1501 of title 31, and the letter is not deemed to be an
administrative commitment for financing. An obligation or
administrative commitment may be made only as amounts are
provided in authorization and appropriation laws.
(4) The total estimated amount of future Government
obligations covered by all outstanding letters of intent under
paragraph (1) of this subsection may not be more than the
amount authorized to carry out section 48103 of this title,
less an amount reasonably estimated by the Secretary to be
needed for grants under section 48103 that are not covered by a
letter.
(5) Letters of intent.--The Secretary may not require an
eligible agency to impose a passenger facility charge under
section 40117 in order to obtain a letter of intent under this
section.
(6) Limitation on statutory construction.--Nothing in this
section shall be construed to prohibit the obligation of
amounts pursuant to a letter of intent under this subsection in
the same fiscal year as the letter of intent is issued.
(7) Partnership [Program Airports] program airports.--The
Secretary may issue a letter of intent under this section to an
airport sponsor with an approved application under section
47134(b) if--
(A) the application was approved in fiscal year 2019;
and
(B) the project meets all other requirements set
forth in this chapter.
(f) Nonallowable Costs.--Except as provided in subsection (d)
of this section and section 47118(f) of this title, a cost is
not an allowable airport development project cost if it is
for--
(1) constructing a public parking facility for
passenger automobiles;
(2) constructing, altering, or repairing part of an
airport building, except to the extent the building
will be used for facilities or activities directly
related to the safety of individuals at the airport;
(3) decorative landscaping; or
(4) providing or installing sculpture or art works.
(g) Use of Discretionary Funds.--A project for which cost
reimbursement is provided under subsection (b)(2)(C) shall not
receive priority consideration with respect to the use of
discretionary funds made available under section 47115 of this
title even if the amounts made available under paragraphs (1)
and (2) of section 47114(c) or section 47114(d)(3)(A) are not
sufficient to cover the Government's share of the cost of the
project.
(h) Nonprimary Airports.--The Secretary may decide that the
construction costs of revenue producing aeronautical support
facilities are allowable for an airport development project at
a nonprimary airport if the Government's share of such costs is
paid only with funds apportioned to the airport sponsor under
section 47114(d)(3)(A) and if the Secretary determines that the
sponsor has made adequate provision for financing airside needs
of the airport.
(i) Bird-Detecting Radar Systems.--The Administrator of the
Federal Aviation Administration, upon the conclusion of all
planned research by the Administration regarding avian radar
systems, shall--
(1) update Advisory Circular No. 150/5220-25 to
specify which systems have been studied; and
(2) within 180 days after such research is concluded,
issue a final report on the use of avian radar systems
in the national airspace system.
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