ACC Legislative News

1. Airport Funding Included in Stimulus; Bill Possible Early Next Year
2. FY 2009 Appropriations Plan in Place
3. DOT/DHS Transition Status

An e-mail supplement to AirportConsulting, ACC's quarterly magazine
Prepared by T.J. Schulz, ACC Vice President

1. $500 Million - $600 Million Possible for Airports in Stimulus Package

The House and Senate failed to pass a second economic stimulus package this year, but plan to move forward with a new stimulus bill in January. This bill will likely contain billions in new infrastructure funding. The current House measure includes $600 million in airport funding, while the most recent Senate version includes $500 million. This spending is in addition to the FY 2009 AIP funding that will be made available through the normal grant program.

Under the House version (H.R. 7110), the funding would be derived from the Airport and Airway Trust Fund and would be made available until September 30, 2009. The House version mandates that priority be given to projects that can be let to bid and awarded within 120 days of enactment. 

The Senate bill directs the FAA to distribute the funds as discretionary grants to airports that demonstrate the ability to obligate these funds within 180 days. The Senate also directs that:

• the funding supplement -- not supplant -- planned expenditures from airport-generated revenues or from other state and local sources on such activities;
• the funding shall be used for activities identified on an airport layout plan; and
• the federal share will be 100 percent.

The Senate bill also includes $500 million in TSA funding for explosion detection systems. Of that amount, $300 million shall be for procurement and installation of checked baggage explosives detection systems and $200 million shall be for checkpoint explosives detection equipment. TSA must provide Congress a plan to distribute the funds within 90 days of passage of the bill. The House bill includes no funding for TSA.

Note that these details may change next year since Congress will need to introduce new bills and work out these differences between the House and Senate versions.

2. FY 2009 FAA Appropriations Plan In Place

The House and Senate leadership currently plan to wrap the FY 2009 U.S. Department of Transportation appropriations bill into an omnibus spending package, and clear that bill for President Obama's signature in January. This would provide FAA FY 2009 appropriations through September 30, 2009. However, because an FAA reauthorization bill has not yet passed, the FAA only has spending authority until March 31, 2009.

The FAA is currently operating under an extension that funds the agency through March 6, 2009. Last month the FAA issued guidance on how it will administer AIP grants under the extension (see ACC Regulatory News 08-03). A reminder that important AIP grant timelines are included in the guidance. Airport sponsors are asked to notify FAA about the use of carryover funding by February 2, 2009 and submit grant applications by February 10, 2009.

3. Obama Administration Transition
 
The new Obama administration is well underway in identifying key agency posts. Arizona Governor Janet Napolitano (D) has been selected as the new Secretary of the Department of Homeland Security, pending a final vetting and Senate confirmation. Reaction to Napolitano's selection in Washington has been generally positive.

The Obama transition team has yet to publicly announce a candidate for Secretary of the Department of Transportation. Jane Garvey, the FAA Administrator from 1997-2002, is one of three leaders assisting the Obama team in identifying a candidate.

As far as timing, a new DOT Secretary will likely be nominated and confirmed in January. It will likely take much longer to identify the FAA and other modal administrators. Historically, new administrators are confirmed in mid- to late-summer. This could impact the timing of the FAA reauthorization effort in 2009.