National Association of State Aviation Officials. John Shea Government Relations Manager (703)

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1 National Association of State Aviation Officials John Shea Government Relations Manager (703)

2 Fiscal 2018 Omnibus: DOT Highlights Department of Transportation (DOT) The bill provides $86.2 billion, in total budgetary resources, including offsetting collections. This is a $10 billion increase from the FY 2017 enacted level. The bill provides $27.3 billion in discretionary appropriations for the DOT. This is $8.7 billion increase from the fiscal year 2017 enacted level.

3 Fiscal 2018 Omnibus: FAA Highlights *$18 billion in total budgetary resources for the FAA *FAA Authorization is extended through Sept. 30, 2018 Airport Grants $1 billion increase in AIP $15 million for Airport Cooperative Research Program $10 million for SCASDP Operations $133 million increase for the Air Traffic Organization $165 million for the Contract Tower program Facilities and Equipment $1.3 billion for NextGen investments (+$239 million) Research and Development $24 million for UAS research ($17 million above the budget request).

4 Fiscal 2018 Omnibus: Airport Grants Airport Improvement Program $3.35 billion Additional Airport Improvement Program Funds -- $1 billion to remain available through September 30, 2020 under these specific requirements: Funding comes from the General Fund, not the Airport and Airways Trust Fund; Funding is NOT subject to apportionment formulas, special apportionment categories, or minimum percentages; USDOT/FAA will distribute funds as discretionary grants to airports and must give priority consideration to projects at: o o (a) Non-primary airports that are classified as Regional, Local, or Basic airports and are not located within a Metropolitan or Micropolitan Statistical Area as defined by the Office of Management and Budget; or (b) primary airports that are classified as Small or Non-hub airports; The federal share for these grants to Non-primary airports is 100 percent; Grant amounts are not subject to any limitation on obligations in the AIP.

5 Trump Infrastructure Plan Legislative Outline for Rebuilding Infrastructure in America $1.5 trillion infrastructure package to include $200 billion direct federal funding Incentive Grants Program $100 billion o 20% federal match to 80% state/local funding o Provided through discretionary grants by federal agencies. Rural Infrastructure Program $50 billion o 80% disbursed to states o 20% provided in performance grants by federal agencies Transformative Projects Program $20 billion o Disbursed by Dept. of Commerce o For innovative projects that are high-risk but commercially viable Federal Credit Programs $14 billion o Expands TIFIA program and includes airports Other $10 billion o Federal Capital Financing Fund to finance federal real estate deals

6 FAA Reauthorization Legislation Timeline Sep. 30, 2018 FAA Authorization Expires Mar. 23, 2018 Congress passes 6-month extension Feb. 27, 2018 ATC privatization dropped from H.R.2977 Sept. 28, 2017 Congress passes 6-month extension Jul. 12, 2017 H.R Rules Print including Tax Title is released Jun. 29, 2017 S approved in Senate Committee Jun. 27, 2017 H.R approved in House Committee Jul. 13, 2016 Congress passes 14-month FAA extension bill Air Traffic Control Privatization Pilot Training/Shortage

7 House FAA Reauthorization ATC Tax Title

8 House FAA Reauthorization ATC Concerns

9 Senate FAA Reauthorization 1,500 Hour Rule The 2013 Pilot Certification and Qualification Requirements for Air Carrier Operations Rule increase the minimum number of flighttraining hours for commercial pilots from 250 hours to 1,500 hours, severely constricting and massively elongating the pilot training pipeline. Senate Commerce Committee Chairman John Thune (R-SD) included language in the Senate FAA Reauthorization that would create additional structured training pathways for credit toward the airline transport pilot certificate (ATP) flight hour requirements. Projected Pilot Shortage Air Service Reductions

10 FAA Reauthorization Bills AIP Program

11 FAA Reauthorization Bills NPE Reform Non-Primary Entitlement (NPE) Program Background: NPE Reform included in S.1405: Key Findings in 2015 NPIAS Report: Before AIR-21, State Apportionment received the total general aviation entitlement. AIR-21 increased the general aviation entitlement to 20% when the AIP is at or above $3.2 billion, but then apportioned NPEs out of that amount. AIP gives each non-primary airport $150,000 in NPE grants annually. NPE grants can carry over for up to 4 years. Unused money is redirected to the FAA for immediate reallocation. Increases carry over from 4 to 5 years Creates NPE discretionary fund for carry over Authorizes the FAA to reduce the local match for certain non-primary airport projects to 5% Allows up to 4% of total NPE funds to be used for certain airport development at Disaster Relief Airports The NPE has come at the expense of the state apportionment, which had been used to fund high priority projects within a state. Since the NPE is calculated first out of the General Aviation apportionment, the state apportionment has dropped each year.

12 FAA Reauthorization Bills PFC Fees House Bill - H.R Allows all airports to charge the $4.50 maximum PFC without as many restrictions. Expands the pilot program for PFCs at non-hub airports. Senate Bill - S.1405 Expands the pilot program for PFCs at non-hub airports. Related: The Senate's FY2018 THUD Appropriations bill increased PFC by $4.00 to $8.50 per passenger - but only for originating flights. The FY2018 omnibus did not include this provision.

13 FAA Reauthorization Bills EAS Program Number of airports in the Essential Air Service program, by state Senate Bill S FY18: $175 million FY19: $175 million FY20: $175 million FY21: $175 million *House EAS levels likely to change due to removal of ATC Privatization *Related: FY 18 Omnibus funded EAS at $155 million

14 FAA Reauthorization Bills SCASDP Small Community Air Service Development Program Funding and Gants Awarded Senate Bill S FY : $10 million Related: FY 18 Omnibus authorized SCASDP AT $10 million

15 FAA Reauthorization Bills Contract Tower Program

16 FAA Reauthorization Bills UAS Key Drone Policy Developments UAS Integration Pilot Program (IPP) UAS Remote ID and Tracking Aviation Rulemaking Committee (ARC) Model Aircraft Exemption (Sec. 336) House Bill H.R Gives the FAA more flexibility to permit operations not permitted under current rules Authorizes package delivery within one year Extends test sites for another six years Starts rulemaking for Unmanned Traffic Management (UTM), or ATC for drones Drones privacy review Study on how to recover FAA costs on drones rules and oversight Senate Bill S Same as House bill Same as House bill Same as House bill Requires the development of riskbased standards for small drones. Requires a rulemaking for microdrones (less than 4.4 lbs.) Study on what type of spectrum drones may use Requires the development of a safety exam for everyone age 13 or older wanting to operate a drone weighing over 0.55 lbs. Establishes fines and prison sentences for people using drones to interfere with aircraft and airports.

17 Forecast Forecast & NASAO Updates NASAO Updates Midterm Elections FAA and Congressional Committee Chairs Long-term FAA Reauthorization Infrastructure investment Comprehensive training program NASAO Aviation Data Report Website NASAO Annual Conference State Aviation Journal, Drone Talk, e-newsletters

18 National Association of State Aviation Officials John Shea Government Relations Manager (703)

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