Fri, Feb 11, 2011
Senators: FAA Bill Is "Too Important" To Be Delayed Again
As the Congressional debate over a long-term FAA funding bill
again gains momentum in Washington, Senate Majority Leader Harry
Reid (D-Nev.) and other senators have said the FAA bill is too
important to be delayed again, which may spell trouble for an
amendment to expand the number of long-range slots available at
Washington's Reagan National Airport (DCA). A group of senators has
been working on a compromise, but Reid has set February 14 as the
deadline for a deal to be reached. He intends to file cloture on
the legislation on that date, meaning that if no amendment is filed
then the number of long-distance slots will remain the same.
The Senate Finance Committee did a mark-up of a bill
reauthorizing the Airport and Airway Trust Fund, or the Aviation
Trust Fund, through Sept. 30, 2013 that will be included in the FAA
reauthorization. The panel approved a measure to establish the Air
Traffic Control System Modernization Account, housed in the
Aviation Trust Fund, to pay for the Next Gen air traffic control
system. Funds for this account would come through raising the tax
on jet fuel from 22 to 36 cents per gallon—a move expected to
raise $400 million annually.
The legislation would also impose a surcharge of 14.1 cents per
gallon on fractional fuel to ensure that funding for Next Gen is
drawn from all sectors of general aviation. Further, the bill would
clearly state that the tax exemption for small aircraft operating
on non-established lines is not applicable to jet engine aircraft,
keeping the exemption intact for air tour operators who meet the
criteria. In addition, there is a measure that would prevent
transportation providers from including amounts besides charges
payable to a government entity in the disclosure of passenger taxes
on tickets and in advertising. The legislation would also limit
funds obtainable by the Aviation Trust Fund to 90 percent of
predicted revenues each fiscal year.
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