Federal Aviation Administration Extension Act of 2008

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, I rise in support of H.R. 6327, the Federal Aviation Administration Extension Act of 2008.

This bill would extend for 3 months the excise taxes that presently fund the Airport and Airway Trust Fund. These are taxes on passengers' tickets and on jet fuel. They are due to expire next Monday. It's important we extend them because they benefit our Nation's airports, airlines, passengers, and pay the salaries of thousands of FAA employees.

This 3-month extension will also allow us additional time to consider some fundamental reforms to the tax structure that finances the Airport and Airway Trust Fund.

We need time to study how the burdens of the taxes that fund our airports and our air traffic control system are distributed among the users.

For example, higher fuel prices have led to higher ticket prices, which means Americans are paying more in taxes on their tickets since the tax is based on a percentage of the fare. I hope we will examine a new system that replaces the percentage tax with a more fair approach that is based on a departure fee, plus the mileage traveled. It seems to make much more sense.

We also need more time to examine proposals to modernize our air traffic control system to satellite, which promises to help cut down on congestion and delays and reduce fuel costs.

Unfortunately, this bill does nothing to help the airline industry keep fuel costs under control, does nothing to keep prices reasonable, does nothing to keep routes accessible and jobs stable for American families, businesses and thousands of airline workers today.

The escalating cost of jet fuel--which peaked at $175 a gallon last month, up nearly $100 from the beginning of this year--in this country is killing our aviation industry, and they can't make up the cost enough in ticket prices alone. This year, the airlines are projecting they will spend $20 billion more in jet fuel, and that will be a 72 percent increase from last year.

Now fuel costs consume almost 40 percent of the price of a ticket, which has tripled just in the last 7 years. Jet fuel has to compete against gasoline and biodiesel for refinery space, and gas continually wins out. We simply don't have enough supply or refinery capacity to produce enough affordable jet fuel.

In response to these record-high jet fuel prices, the airlines have laid off thousands of workers, cut service to hundreds of communities, raised ticket prices, and have started charging new fees even for luggage.

Americans are suffering. Our economy is suffering, and airlines are suffering because of these high fuel prices. I urge my colleagues to bring legislation to the floor that will finally address the core of the problem we all know to be: more supply, more American-made energy, less dependency on foreign sources of oil. And we don't need more gimmicks, gimmicks like suing OPEC, gimmicks like use-it-or-lose-it, gimmicks like windfall profits taxes.

We need to open up the closed areas in our waters and on our land to thoughtful exploration and production. We need to invest in existing technologies.

We need to develop oil shale and coal-to-liquid technology, which can go in our airline fuel tanks, as well as promote advanced biofuels instead of relying on food-based fuel. We also need to get more refineries online by streamlining the permitting process. We also should extend current tax benefits for renewable energy, as well as solar and wind technology.

So, while I urge my colleagues to vote ``yes'' on this bill, I hope they will consider real relief for the airline industry, passengers and its workers to address the growing cost of fuel.

Congress has failed to act. Our airlines and their workers and those passengers have paid the price. It is time to produce more American- made energy.

Mr. Speaker, I reserve the balance of my time.

Mr. Speaker, I yield 5 minutes to a gentleman who is a recognized expert on aviation infrastructure in America, the ranking Republican on the Aviation Subcommittee, the gentleman from Wisconsin (Mr. Petri).

Mr. Speaker, I yield myself 30 seconds.

I would say these sky-high jet fuel prices are caused in part because America is doing less, not more, to take responsibility for our own energy needs.

We're blessed in this country with more than a 200-year supply of coal. It is affordable, but not yet clean. It can be, with the right technology, converted to super clean liquid fuels. Technology has existed in Germany since the 1940s and used in African countries for almost one-third of their diesel and other vehicle fuels. This Congress needs to act to create more affordable fuel here at home.

With that, I yield 2 minutes to the gentleman from Texas whose district reflects a lot of the American-made energy that has created America, the gentleman from Texas (Mr. Conaway).

Mr. Speaker, at this point, I yield 3 minutes to one of our leaders in the party who is knowledgeable on many issues, the gentleman from Connecticut (Mr. Shays).

Mr. Speaker, may I inquire as to the remaining time.

Mr. Speaker, at this time, I would like to yield 2 minutes to the gentlelady from North Carolina, who is going to talk about one of the solutions to higher jet fuel prices for airlines.

Mr. Speaker, I yield myself as much time as I may consume.

This bill is an appropriate one. It is important in the airline infrastructure to find the right solutions. As America continues to grow, the aviation infrastructure needs to grow and upgrade as well.

I appreciate the gentleman from Massachusetts and the gentleman from Illinois' leadership on this issue because it is so vital to our future in America.

Equally important, I think, though, is the cost of energy in this country. It seems to me that while America has done less and less to take responsibility for our energy needs, we've seen prices go up and up. Under President Carter's Presidency, at the time of the last energy crisis America was only importing one-third of the oil that we needed each day. Today, it is the reverse; we import nearly two-thirds of what we use each day and we are now, unfortunately, subject to the whims of the global market on energy prices. As a result, in the airline industry we're seeing each day we can't open the newspaper without seeing the cuts to some community that depend upon service from airlines. We don't see some notices of layoff. I know in Continental, we're going to lose 3,000 jobs, 3,000 families being laid off through no fault of their own, except this Congress has not acted. It has failed to act to address lower jet fuel prices for the airline industry plus lower gas prices for America as a whole.

The solution is fairly direct. In addition to energy conservation, which we need to do more of, in addition to renewable energies, which are important, we need to also provide more traditional energy, the supply of oil and gas, coal and oil shale, that will help ease the transition to renewable energies and avoid the cost of layoffs, the unprofitable quarters, and the impact on our American airline industry.

I hope that this Congress will come together again, not on gimmicks, but on real substantive issues that Republicans and Democrats together can support that will create more American-made energy, more supply here in America, and lower gas prices.

With that, Mr. Speaker, I yield back the balance of my time.

Mr. Speaker, I object to the vote on the ground that a quorum is not present and make the point of order that a quorum is not present.

Let me thank Mr. Neal for his leadership and as well thank my good friend Chairman Rangel and fellow Texas friend Mr. Brady, Mr. Costello, and others who have been engaged in this legislation.

I chair the Subcommittee on Transportation Security and Infrastructure Protection. We have much overlapping concerns as relates to the aviation industry. So I rise to support these extensions because I believe that we do have a challenge in not disallowing these payments to go forward.

The costs of air travel have increased rapidly in the last few months. Airlines have not only increased the price of air fare, but they have been forced to put charges on extra baggage, cut flights, and lay off hundreds of employees. But safe, secure air travel is essential, as it is beneficial environmentally, socially, and especially economically necessary. Without the ability to travel by air cheaply and easily, the flow of people, goods, and ideas would substantially decrease.

I represent Houston Intercontinental Airport and the headquarters for Continental Airlines. I see it firsthand. In order to be able to have safe secure travel, the necessary resources must be in place.

I look forward to meeting with the leadership of my hometown airline to discuss what Congress can do as it relates to jet fuel. Although we know how many of our consumers are suffering because of price per gallon for gasoline, the need for jet fuel and the cost has risen exponentially, with no relief in sight.

In fact, let me applaud Continental Airlines for its alliance with Star Alliance just last week to be able to provide more services and other necessary support matters being taken care of. It is standing independently, but as well, it has its own concerns.

If we do not extend funding to airline programs, many negative consequences will ensue, including the cutting of services, such as air traffic control, certification, and inspection, as well as the inability by the airlines to buy new equipment for aging infrastructure.

As I travel around the country on behalf of my constituents, I'm also hearing from small towns who are concerned that because of the high cost of flying, those centers will be cut off. Although I live in the fourth largest city in the Nation, I'm not interested in seeing others in the surrounding areas of Texas not have air transport.

The Airport and Airway Trust Fund was established in 1970 ``to provide for the expansion and improvement of the Nation's airport and airway system.'' It has provided funds for the Federal Aviation Administration.

And so this is an important extension because we need air travel, but we need it in the right way.

Mr. Speaker, I look forward to working with my colleagues and addressing the question of high fuel costs, of looking at ensuring the safety and security of our fellow travelers, and as well to ensure that we have opportunities for minority businesses to work on these large projects that are coming forward.

This is a necessary bill. I ask my colleagues to support it.

I rise today in strong support of H. Res. 6327, to amend the Internal Revenue Code of 1986 to extend the funding and expenditure authority of the Airport and Airway Trust Fund, and for other purposes, introduced by my distinguished colleague from New York, Representative Charles B. Rangel. This important legislation will extend funding in order to

improve transportation for Americans across the Nation.

The costs of air travel have increased rapidly in the last few months. Airlines have not only increased the price of air fare, but they have been forced to put charges on extra baggage, cut flights, and lay off hundreds of employees. Air travel is essential, as it is beneficial environmentally, socially, and especially economically. Without the ability to travel by air cheaply and easily, the flow of people, goods, and ideas would substantially decrease.

If we do not extend funding to airline programs, many negative consequences will ensue, including cutting services, such as air traffic control, certification, and inspection, as well as the inability by the airlines to buy new equipment for the aging infrastructure.

It is obvious that something must be done to solve this pressing problem. It is necessary for airlines to look into alternative means in order to increase their effectiveness. However, it is also necessary for the United States to fund several programs.

The Airport and Airway Trust Fund was established in 1970 ``to provide for the expansion and improvement of the Nation's airport and airway system.'' Since then, it has provided funds for the Federal Aviation Administration. Various pieces of legislation have come before the Congess to extend this fund, and yet partisanship has stalled these bills. It is necessary for us to extend this program in order to modernize our air traffic control system. NextGen, a state-of-the-art air traffic control system, would allow control towers to pinpoint the exact locations of aircraft, making the skies less chaotic, and air travel much more efficient.

Additionally, the extension of the Airport Improvement Program is necessary in order to improve safety and efficiency in our air travel. Airports are sites used by millions and millions of Americans every single day. It is vital that airports, travelers, and air flight personnel be secure, and thus it is important to continue to fund this program.

Even though air travel is obviously important, other forms of travel contribute to the Nation as well. The Highway Trust Fund was created by the Highway Revenue Act of 1956 to ensure a dependable source of financing for the National System of Interstate and Defense Highways. This is the premier fund for Government spending on highways, with approximately 45 percent of all highway spending coming from this fund. The Congressional Budget Office predicts the fund will run a deficit of $1.7 billion at the end of 2009 and $8.1 billion by the end of 2010. The Highway Trust Fund balance must be restored.

This bill will extend the taxes that fund the Airport and Airway Trust Fund, extend the expenditure authority of the Airport and Airway Trust Fund, extend the Airport Improvement Program, and restore the Highway Trust Fund balance. This will be important to keep airports modernized and we should also ensure that minority-owned and women- owned and small businesses have equal chances for construction work. This is a vital bill for cities like Houston, Texas, which happens to have one of the top 10 airports in the Nation. I urge my fellow members of Congress to support H.R. 6327 in order to increase efficiency, safety, and functioning of our Nation's transportation systems.

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 6327) to amend the Internal Revenue Code of 1986 to extend the funding and expenditure authority of the Airport and Airway Trust Fund, and for other purposes, as amended.

Mr. Speaker, I ask unanimous consent that all Members have 5 legislative days within which to revise and extend their remarks and include extraneous material on H.R. 6327.

Mr. Speaker, I yield myself such time as I might consume.

Mr. Speaker, first, let me thank Chairman Rangel and Chairman Oberstar for their tireless efforts in trying to seek a long-term funding solution for our Nation's aviation programs.

Last year, I was honored to chair a hearing in the Select Revenue Measure Subcommittee where we heard from all sides on this issue, including the chairman and ranking member of the Transportation Committee and Aviation Subcommittee. Unfortunately, our colleagues on the other side of the Hill have not been able to secure an agreement, and that's really why we're here today to provide some additional time for negotiations.

H.R. 6327 extends the financing and spending authority for the Airport and Airway Trust Fund. The trust fund taxes and spending authority are scheduled to expire on June 30, 2008. H.R. 6327 extends these dates at current rates for 3 months through September 30, 2008.

Previous legislation extending these taxes were unanimously reported out of the Ways and Means Committee with bipartisan support. The substitute amendment makes one change from the bill as introduced. It deletes section 5 which would have transferred $8 billion to the Highway Trust Fund. This provision would prevent cuts in highway programs next year. CBO has informed us that it would have no budgetary impact.

While that provision enjoys significant bipartisan support, a number of Republican Members have indicated strong opposition. It is imperative that we enact the FAA provisions this month. To ensure that we have the necessary two-thirds support to pass this bill today, we decided to remove the highway language. This bill will keep the Airport and Airway Trust Fund taxes and operations in place until a long-term FAA reauthorization act is signed into law.

The bill also includes a number of authorizing provisions under the jurisdiction of the Transportation and Infrastructure Committee, which worked with Ways and Means to develop the legislation.

The most important of these is the Airport Improvement Program, or AIP. This program funds grants for projects throughout the country. Many of our airports rely on this program to help finance critical modernization and expansion efforts.

The bill would extend the AIP for another 3 months. The other authorizing provisions are also 3-month extensions.

Mr. Speaker, this is a temporary extension of an essential funding mechanism for our aviation programs, and I urge its adoption.

I reserve the balance of my time.

Mr. Speaker, I am pleased to yield such time as he might consume to the gentleman from Illinois (Mr. Costello) whose knowledge of transportation and aviation initiatives in Illinois is not only extensive but most impressive.

Mr. Speaker, at this time, I'm pleased to yield 2 minutes to the gentlelady from Texas (Ms. Jackson-Lee).

I yield the gentlelady an additional 1 minute.

Mr. Speaker, I reserve the balance of my time.

Mr. Speaker, I continue to reserve the balance of my time.

Mr. Speaker, the issue has been vetted in committee. The House has had an opportunity to work its will, and we're simply asking for an extension based upon the bipartisan support demonstrated here today. I urge adoption of the resolution and urge adoption of the extension.

Mr. Speaker, I yield back the balance of my time.

I thank my colleague for yielding time to me.

Mr. Speaker, I rise today to support this short-term authorization for the FAA because we simply cannot allow our transportation system to fail. However, I believe this country and its airspace would be better served by the FAA if this legislation demanded greater accountability and responsiveness from this agency.

We need to continue to invest in our air transportation system to make it safer and more efficient. Airline passenger volume continues to increase, and the percentage of flights delayed 15 minutes or more in 2007 is close to surpassing the record set in 2000.

Many business travelers are rightfully frustrated by the long delays and inefficiencies at these airports. However, I am opposed to the FAA's implementation of its preferred Integrated Airspace Alternative, which will redesign the New York, New Jersey and Philadelphia airspace to mitigate air traffic congestion. Furthermore, the arrogance I have experienced in working with the FAA to mitigate airline congestion and improve efficiency at some of our Nation's most congested airports, like LaGuardia, Kennedy and Newark, is palpable.

In deciding to move forward with its Integrated Airspace Alternative, the FAA had three other alternatives to choose from, but selected the congestion mitigation plan that would shift the approach for flights to LaGuardia to the north, which would reroute significant air traffic over previously unaffected populated areas. The FAA has refused to consider other market-based measures that could be equally as effective and less extreme than redesigning the airspace.

I am particularly disappointed the FAA has not implemented any noise mitigation strategies in the district I represent, or many districts throughout the northeast, despite the wide swath of land over the Fourth District that will be adversely impacted by planes flying as low as 4,000 feet. I believe if the FAA was required to take quality of life concerns into consideration, it would not have decided to implement its preferred Integrated Airspace Alternative.

Time and again I have shared my concerns and the concerns of my constituents with the FAA and emphasized

the fact that the plan would bring countless more planes into the region at the expense of the region's quality of life. It seems to many of us there are other solutions that need to be considered before implementing such a radical alternative that negatively affects so many thousands of residents throughout the northeast.

Even though there is no mandate to consider quality of life issues, the FAA simply must not ignore the hugely negative impacts of air noise in this process.

In closing, it is my hope that in the long term we can address the need to upgrade and improve our air transportation system and demand greater accountability from the FAA.

Mr. Speaker, I rise in support of H.R. 6327. This legislation provides a three-month extension of aviation programs and taxes, through September 30, 2008. Without this extension, the Federal Aviation Administration, FAA, will face a partial shut-down beginning next week, on July 1, 2008.

The previous authorization for aviation programs--the ``Vision 100-- Century of Aviation Reauthorization Act''--expired on September 30, 2007. On September 20, 2007, the House passed H.R. 2881, the ``FAA Reauthorization Act of 2007,'' to reauthorize FAA programs for fiscal yeas 2008-2011.

Unfortunately, the Senate has yet to act on this or any other long- term FAA reauthorization bill. I strongly urge the other body to bring their reauthorization bill to the floor, so we can go to conference and pass a long-term reauthorization of aviation programs. In the meantime, the three-month extension before us today is urgently needed.

H.R. 6327 extends the aviation excise taxes through September 30, 2008. These taxes are necessary to support the Aviation Trust Fund, which in recent years has provided about 80 percent of the FAA's budget. With an uncommitted cash balance of just $1.5 billion at the start of this fiscal year, any lapse in the aviation taxes could put the solvency of the Aviation Trust Fund at risk.

In addition to extending the aviation taxes, H.R. 6327 extends the FAA's authority to make expenditures from the Aviation Trust Fund. Without this authority, the FAA will face a partial shut-down beginning July 1st, as it will be unable to pay approximately 4,000 employees whose salaries are funded entirely by the Aviation Trust Fund.

H.R. 6327 also provides an additional $919 million in contract authority for the Airport Improvement Program, AIP. Together with the $2.756 billion provided under the previous short-term extension, this results in a total of $3.675 billion in contract authority for the AIP program in FY 2008. This will enable airports to move forward with important safety and capacity projects.

To allow aviation programs to continue under the same terms and conditions as were in effect during the previous authorization period, H.R. 6327 also extends several other provisions of Vision 100.

I thank Chairman Rangel and Ranking Member McCrery of the Committee on Ways and Means for their, assistance in ensuring the continued operation of aviation programs. I also thank my Committee colleagues, Ranking Member Mica, Subcommittee Chairman Costello, and Subcommittee Ranking Member Petri, for working with me on this critical legislation.

I urge my colleagues to support H.R. 6327.