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House T&I Committee Stimulus Proposal Includes $5.25 Billion for Aviation

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

House T&I Committee Stimulus Proposal Includes $5.25 Billion for Aviation

The House Transportation and Infrastructure Committee released a "Rebuild America" stimulus framework that proposes $85 billion in infrastructure investment over two years. A total of $5.25 billion is proposed for aviation, including $5 billion for the Airport Improvement Program (AIP) and $250 million for FAA Facilities and Equipment.

Please note that this is the House Transportation Committee's economic stimulus proposal, and the actual House stimulus bill may not adopt these funding recommendations. The final bill will be drafted by the House Speaker Nancy Pelosi's Office and the Appropriations Committee early next year.

Below are the details of the House T&I Committee plan: 

+++++++++++++++++++++++

Aviation: $5.25 billion including Airport Improvement Program ($5 billion) and Federal Aviation
Administration Facilities & Equipment ($250 million).
 
AIRPORT IMPROVEMENT PROGRAM - $5 BILLION
Infrastructure Needs: Increased investment in our airport infrastructure is necessary to maintain a safe and efficient aviation system. The Federal Aviation Administration's ("FAA") recently-released National Plan of Integrated Airport Systems (2009-2013) ("NPIAS") estimates that there will be $49.7 billion of Airport Improvement Program ("AIP")-eligible projects during the next five years - an increase of 21 percent compared to the last NPIAS that the FAA issued two years ago. Additional funds are needed to allow the AIP program to keep pace with inflationary cost increases and meet airport safety and capacity needs.
 
Ready-to-Go Projects: The FAA has identified at least $1.5 billion of ready-to-go AIP projects if additional funding is made available. The FAA has identified a total of $5 billion of AIP projects that are ready-to-go to construction within two years. These projects include runway or taxiway rehabilitations, extensions, and widening; obstruction removal; apron construction, expansion or rehabilitation; runway lighting improvements; signage improvements; security enhancements; Airport Rescue and Firefighting equipment and facilities; and airside service or public access roads.
 
Proposal: Provide $5 billion for the Airport Improvement Program.
 
Source: Appropriate funds from the Airport and Airway Trust Fund.
 
Distribution: Distribute funds to airports through existing AIP Discretionary Grants program.
The FAA would determine the distribution of funds through its existing competitive process.
 
Prioritization: Prioritize funds on projects that are ready to go to construction and can be underway within 90 days.
 
Shovel-Ready Deadlines: Require airports to award contracts for projects totaling at least $1 billion (20 percent) of these funds within 90 days of the date of grant receipt. Require airports to award contracts for projects totaling at least $2.5 billion (50 percent) of these funds within one year of the date of enactment and award contracts for all of the funds within two years of the date of enactment.
 
Economic Impact: Create approximately 174,000 jobs and $31 billion of economic activity.


FAA FACILITIES & EQUIPMENT - $250 MILLION
Infrastructure Needs: The Federal Aviation Administration ("FAA") has a significant backlog of infrastructure projects needed to sustain or replace existing air traffic control facilities. In addition, the FAA could accelerate the installation of runway safety technology and equipment at airports if additional funding is made available. Runway incursions are an identified risk that can be mitigated by installing systems such as the Airport Surface Detection Equipment Model X ("ASDE X") and Runway Status Lights. Accelerated installation of these systems would provide immediate economic stimulus in the form of construction jobs, as well as increased safety to the public.
 
Ready-to-Go Projects: The FAA has identified at least $185 million in infrastructure projects and $65 million in runway safety projects that are ready to go within 90 to 180 days, if additional funding is made available.
 
The infrastructure projects include:
-          Backup Power Systems: Fund backup power projects such as battery, engine generator and cable replacements, enroute traffic control center power improvements, and lightning protection ($40 million).
-          Enroute Traffic Control Center Modernization/Sustainment: Fund modernization and sustainment of enroute traffic control centers ($40 million).
-          Air Traffic Control Tower/Approach Control ("TRACON") Facilities: Fund replacement of air traffic control towers and approach control facilities that are in poor condition. TRACON replacement projects have completed design and engineering, and contracts could be awarded within three or four months of receipt of funding ($80 million).
-          Navigation and Landing/Unmanned Air Traffic Control facilities sustainment: Fund installation and sustainment of Instrument Landing Systems ($15 million).
-          FAA Technical Center and Aeronautical Center: Fund facility sustainment of the FAA's Technical Center and Aeronautical Center ($10 million).
 
The runway safety projects include:
-          Accelerate Installation of ASDE X: Accelerate installation of ASDE X, which is a surface surveillance system that processes information from radar and other sources to provide location and aircraft identification information to air traffic controllers, at major airports. ASDE X provides controllers with a visual representation of the traffic situation on the airport surface and arrival corridors. The accelerated installation can be accomplished under the existing AXDE X contract ($15 million).
-          Accelerate Installation of Runway Status Lights: Accelerate installation of Runway Status Light ("RWSL") systems. Implementation includes construction of lighting equipment at airports equipped with ASDE X technology to share common runway status information with pilots. The accelerated installation can be accomplished under the existing RWSL contract ($50 million).
 
Proposal: Provide $250 million for the FAA's Facilities and Equipment program.
 
Source: Appropriate funds from the Airport and Airway Trust Fund.
 
Distribution: Distribute funds through the FAA's existing administrative processes.
 
Prioritization: Prioritize funds on projects that are ready to go to construction and can be underway within 90 days.
 
Shovel-Ready Deadlines: Require the Federal Aviation Administration to award contracts for projects totaling at least $125 million (50 percent) of these funds within 90 days of the date of enactment. Require the FAA to award contracts for all of the funding within one year of the date of enactment.
 
Economic Impact: Create approximately 7,000 jobs and $1.55 billion of economic activity.
 

Conditions 
The Committee proposal also includes a number of conditions that would apply to all of the infrastructure stimulus funding. Some notable conditions are:

-          The proposal requires the steel, iron, and manufactured goods for these projects to be manufactured in the United States.
-          The proposal requires States, cities, public transit agencies, and other recipients of formula funds to certify State and local maintenance of effort and equitable distribution of funding to ensure that States, cities, public transit agencies, and other recipients continue their current investment levels and distribute funds equitably throughout the State and metropolitan areas. Recipients must submit a plan of projects for projects to be awarded contracts within 90 days, one year, and two years.
-          The proposal ensures transparency and accountability by including regular reporting requirements to track the use of the funds, State investments, and the estimated number of jobs created or sustained. The Federal agencies administering these funds will provide periodic reports to Congress and the Economic Recovery Advisory Board (announced by President-elect Obama on November 26, 2008) on the amount of Federal funds apportioned, obligated, and outlayed; the status of bids, contracts, and construction; and the number of jobs created or sustained with the Federal investments. The report will also track State investment levels to ensure state maintenance of effort. The proposal requires six periodic reports: 30 days, 60 days, 120 days, 180 days, one year, and three years after the date of enactment.