[Senate Report 116-331]
[From the U.S. Government Publishing Office]
Calendar No. 637
116th Congress } { Report
SENATE
2d Session } { 116-331
_______________________________________________________________________
EXPEDITED DELIVERY OF AIRPORT INFRASTRUCTURE ACT OF 2020
__________
R E P O R T
of the
COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
on
S. 3958
December 15, 2020.--Ordered to be printed
______
U.S. GOVERNMENT PUBLISHING OFFICE
19-010 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. 637
116th Congress } { Report
SENATE
2d Session } { 116-331
======================================================================
EXPEDITED DELIVERY OF AIRPORT INFRASTRUCTURE ACT OF 2020
_______
December 15, 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. 3958]
[Including cost estimate of the Congressional Budget Office]
The Committee on Commerce, Science, and Transportation, to
which was referred the bill (S. 3958) 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
with an amendment and recommends that the bill (as amended) do
pass.
Purpose of the Bill
S. 3958, the Expedited Delivery of Airport Infrastructure
Act of 2020, would permit an airport sponsor to use Airport
Improvement Program funds to provide incentive payments for
certain airport development projects.
Background and Needs
Airports draw funding resources from a number of different
avenues, including through Federal support via the Airport
Improvement Program (AIP), which is administered by the Federal
Aviation Administration (FAA). AIP provides grants to public
use airports for eligible construction projects, terminal
development, safety equipment, and other safety, capacity, or
noise reduction projects.\1\ AIP funding is only used at
public-use airports, with Federal shares capped at 75 percent
for large and medium hub airports, 80 percent for noise
compatibility projects, and 90 to 95 percent for other
airports.\2\ Usually, airport sponsors get AIP grants for
airfield improvements or rehabilitation projects, and
eligibility for these projects is strictly dictated by
statutory requirements.\3\ AIP currently is authorized at $3.35
billion a year through fiscal year 2023.
---------------------------------------------------------------------------
\1\Federal Aviation Administration, ``Overview: What Is AIP?''
(https://www.faa.gov/airports/aip/overview/) (accessed Oct. 26, 2020).
\2\Ibid.
\3\Ibid.
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Legislative History
S. 3958, the Expedited Delivery of Airport Infrastructure
Act of 2020, was introduced on June 15, 2020, by Senator Young
(for himself and Senators Sinema and Cruz) and was referred to
the Committee on Commerce, Science, and Transportation of the
Senate. On July 22, 2020, the Committee met in open Executive
Session and, by voice vote, ordered S. 3958 reported favorably
with an amendment. S. 3958 was modified by an amendment offered
by Senator Rick Scott, which gives the Secretary of
Transportation an option to decide whether or not to allow an
incentive payment subject to a cost-benefit analysis.
A companion bill to S. 3958, H.R. 5912, the Expedited
Delivery of Airport Infrastructure Act of 2020, was introduced
on February 14, 2020, by Representative Sam Graves (for himself
and Representative Garret Graves) and was referred to the
Committee on Transportation and Infrastructure of the House of
Representatives. On October 1, 2020, H.R. 5912 passed and was
agreed to, on a motion to suspend the rules and pass that bill
as amended, in the House of Representatives.
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:
The Airport Improvement Program (AIP) provides grants to
airport sponsors for capital improvement projects related to
airport safety, capacity, and security. S. 3958 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.
S. 3958 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.
On June 23, 2020, CBO transmitted a cost estimate for H.R.
5912, the Expedited Delivery of Airport Infrastructure Act of
2020, as ordered reported by the House Committee on
Transportation and Infrastructure on February 26, 2020. The two
pieces oflegislation are similar, and CBO's estimate of their
budgetary effects are the same.
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
In accordance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee provides the
following evaluation of the regulatory impact of the
legislation, as reported:
number of persons covered
S. 3958, as amended, would affect only airport sponsors and
the contractors who perform work at airports. These entities
are already subject to various Federal laws and regulations, so
no new persons would be impacted.
economic impact
S. 3958, as amended, would not have an adverse impact on
the Nation's economy, as it allows airports to offer
contractors an incentive payment for finishing up a project
early if it is beneficial for safety, capacity, or efficiency.
privacy
S. 3958, as amended, would not have a negative impact on
the privacy rights of individuals.
paperwork
The Committee anticipates the passage of S. 3958 would not
have a significant impact on paperwork requirements. Airport
development projects are already subject to extensive amounts
of paperwork, and the addition of provisions to provide
incentives to complete work early would be relatively minimal.
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 ``Expedited Delivery of Airport Infrastructure Act of
2020''.
Section 2. Allowable cost standards for airport development projects.
This section would allow airports to use AIP grants to
provide incentive payments for a project should the incentive
payment be no more than 5 percent of the total project cost of
$1 million. The Secretary of Transportation would determine
whether or not the incentive payment would benefit the
efficiency or capacity of the airport, or result in cost
savings, as a result of shortening the project's duration.
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):
UNITED STATES CODE
* * * * * * *
TITLE 49--TRANSPORTATION
* * * * * * *
Subtitle VII--Aviation Programs
* * * * * * *
PART B--AIRPORT DEVELOPMENT AND NOISE
* * * * * * *
CHAPTER 471--AIRPORT DEVELOPMENT
* * * * * * *
Subchapter I--Airport Improvement
* * * * * * *
Sec. 47110. Allowable project costs
(a) * * *
(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 or result in
cost savings as a result of shortening the
project's duration;
(2)(A) * * *
* * * * * * *
(7) * * *
(c) * * *
* * * * * * *
(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) * * *
* * * * * * *
[(7) Partnership Program Airports.--]
(7) Partnership 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) * * *
* * * * * * *
(i) * * *
* * * * * * *