But FAA Funding Plan Faces Senate Questions, Looming Veto

ANN REALTIME REPORTING 09.20.07 1445 EDT: The US House of Representatives has passed its "FAA Reauthorization Act of 2007," a move commended by the National Business Aviation Association (NBAA).

The legislation was approved by House lawmakers Thursday as part of Congress's multi-year "reauthorization," or funding process for the FAA. It provides additional funding for the FAA through sources including an increase in general aviation fuel taxes.

"NBAA thanks the House of Representatives for passing this legislation to fully fund the FAA and make the transition to the Next Generation Air Transportation System, while preserving the ultra-efficient, reliable and stable 'pay-at-the-pump' funding mechanism that has worked so well for so long," said NBAA President and CEO Ed Bolen.

"We commend House Members for rejecting user fees, and we look forward to working with everyone in Congress to modernize the nation's aviation system so that it benefits all users, and remains the world's largest, best and safest."

Despite the vote of confidence in the plan by Congress, potential difficulties still loom for the bill. As ANN reported Wednesday, the White House says it will veto H.R. 2881. The Office of Management and Budget said the bill "falls far short" of what the White House believes is necessary to reduce flight delays.

"It would make the status quo worse by undoing progress achieved in prior Congresses," OMB said, adding that President George W. Bush's "senior advisors would recommend that he veto the bill."

Two last-minute amendments added to H.R. 2881 during final committee voting in June -- calling for the FAA and controllers to return to the bargaining table in contract talks, and a shifting in labor rules governing local businesses in forming unions -- spelled trouble for White House approval of the House bill early on.

H.R. 2881 is supported by most general aviation "letter groups", as it does not call for broad "user fees" for pilots of small aircraft. As ANN has reported, the costs of pilot certificates, airworthiness certificates, and aircraft registrations would rise under the House plan, as would the current fuel tax -- 21.8 cents per gallon to 36 cents per gallon for jet fuel, while avgas would see a 25 percent increase, from 19.3 cents per gallon to 24.1 cents per gallon.

Still, that's seen as a far better deal than the FAA's plan -- which calls for sweeping user fees for GA and bizav pilots. It is also considered less onerous than the Senate plan also under consideration, which would place a $25 per-trip charge for IFR flights for many turbine aircraft... though piston aircraft pilots wouldn't be hit with any additional fees.

Both the House and Senate plans would need to be consolidated into a single bill before heading to the President's desk. A vote by the Senate on S.1300 may not come for weeks, according to the Aircraft Owners and Pilots Association.

Current funding for the FAA expires at the end of this month, although the House Ways and Means Committee has passed a short-term extension of the current funding authorization to allow time to complete action on new FAA funding legislation.

FMI: www.faa.gov, www.congress.gov