Senate Report 116-331 — Expedited Delivery of Airport Infrastructure Act of 2020 (December 15, 2020)
Summary
Senate Report 116–331, Calendar No. 637, dated December 15, 2020, is the report of the Committee on Commerce, Science, and Transportation on S. 3958, the Expedited Delivery of Airport Infrastructure Act of 2020. The committee reports the bill favorably with an amendment and recommends that it do pass. The report states that the bill would permit an airport sponsor to use Airport Improvement Program funds to provide incentive payments for certain airport development projects. In the Congressional Budget Office cost estimate, the payments would be capped at the lesser of $1 million or 5 percent of the project's contract value, and CBO estimates no significant effect on discretionary spending. The legislative history says the bill was introduced on June 15, 2020, by Senator Young.
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“Senate Report 116-331 — Expedited Delivery of Airport Infrastructure Act of 2020 (December 15, 2020).”
Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/crpt-crpt-116srpt331-crpt-116srpt331/
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Calendar No. 637
116TH CONGRESS REPORT
" SENATE !
2d Session 116–331
EXPEDITED DELIVERY OF AIRPORT
INFRASTRUCTURE ACT OF 2020
R E P O R T
OF THE
COMMITTEE ON COMMERCE, SCIENCE, AND
TRANSPORTATION
ON
S. 3958
DECEMBER 15, 2020.—Ordered to be printed
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U.S. GOVERNMENT PUBLISHING OFFICE
19–010 WASHINGTON : 2020
congress.#13
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SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
ONE HUNDRED SIXTEENTH CONGRESS
SECOND SESSION
ROGER F. WICKER, Mississippi, Chairman
JOHN THUNE, South Dakota MARIA CANTWELL, Washington
ROY BLUNT, Missouri AMY KLOBUCHAR, Minnesota
TED CRUZ, Texas RICHARD BLUMENTHAL, Connecticut
DEB FISCHER, Nebraska BRIAN SCHATZ, Hawaii
JERRY MORAN, Kansas EDWARD J. MARKEY, Massachusetts
DAN SULLIVAN, Alaska TOM UDALL, New Mexico
CORY GARDNER, Colorado GARY C. PETERS, Michigan
MARSHA BLACKBURN, Tennessee TAMMY BALDWIN, Wisconsin
SHELLEY MOORE CAPITO, West Virginia TAMMY DUCKWORTH, Illinois
MIKE LEE, Utah JON TESTER, Montana
RON JOHNSON, Wisconsin KYRSTEN SINEMA, Arizona
TODD C. YOUNG, Indiana JACKY ROSEN, Nevada
RICK SCOTT, Florida
JOHN KEAST, Staff Director
DAVID STRICKLAND, Minority Staff Director
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(II)
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Calendar No. 637
116TH CONGRESS REPORT
" SENATE !
2d Session 116–331
EXPEDITED DELIVERY OF AIRPORT INFRASTRUCTURE ACT
OF 2020
DECEMBER 15, 2020.—Ordered to be printed
Mr. WICKER, from the Committee on Commerce, Science, and
Transportation, submitted the following
R E P O R T
[To accompany S. 3958]
[Including cost estimate of the Congressional Budget Office]
The Committee on Commerce, Science, and Transportation, to
which was referred the bill (S. 3958) to amend title 49, United
States Code, to permit the use of incentive payments to expedite
certain federally financed airport development projects, having con-
sidered the same, reports favorably thereon with an amendment
and recommends that the bill (as amended) do pass.
PURPOSE OF THE BILL
S. 3958, the Expedited Delivery of Airport Infrastructure Act of
2020, would permit an airport sponsor to use Airport Improvement
Program funds to provide incentive payments for certain airport
development projects.
BACKGROUND AND NEEDS
Airports draw funding resources from a number of different ave-
nues, including through Federal support via the Airport Improve-
ment Program (AIP), which is administered by the Federal Avia-
tion Administration (FAA). AIP provides grants to public use air-
ports for eligible construction projects, terminal development, safe-
ty equipment, and other safety, capacity, or noise reduction
projects.1 AIP funding is only used at public-use airports, with Fed-
eral shares capped at 75 percent for large and medium hub air-
ports, 80 percent for noise compatibility projects, and 90 to 95 per-
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1 Federal Aviation Administration, ‘‘Overview: What Is AIP?’’ (https://www.faa.gov/airports/aip/
overview/) (accessed Oct. 26, 2020).
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cent for other airports.2 Usually, airport sponsors get AIP grants
for airfield improvements or rehabilitation projects, and eligibility
for these projects is strictly dictated by statutory requirements.3
AIP currently is authorized at $3.35 billion a year through fiscal
year 2023.
LEGISLATIVE HISTORY
S. 3958, the Expedited Delivery of Airport Infrastructure Act of
2020, was introduced on June 15, 2020, by Senator Young (for him-
self and Senators Sinema and Cruz) and was referred to the Com-
mittee on Commerce, Science, and Transportation of the Senate.
On July 22, 2020, the Committee met in open Executive Session
and, by voice vote, ordered S. 3958 reported favorably with an
amendment. S. 3958 was modified by an amendment offered by
Senator Rick Scott, which gives the Secretary of Transportation an
option to decide whether or not to allow an incentive payment sub-
ject to a cost-benefit analysis.
A companion bill to S. 3958, H.R. 5912, the Expedited Delivery
of Airport Infrastructure Act of 2020, was introduced on February
14, 2020, by Representative Sam Graves (for himself and Rep-
resentative Garret Graves) and was referred to the Committee on
Transportation and Infrastructure of the House of Representatives.
On October 1, 2020, H.R. 5912 passed and was agreed to, on a mo-
tion to suspend the rules and pass that bill as amended, in the
House of Representatives.
ESTIMATED COSTS
In accordance with paragraph 11(a) of rule XXVI of the Standing
Rules of the Senate and section 403 of the Congressional Budget
Act of 1974, the Committee provides the following cost estimate,
prepared by the Congressional Budget Office:
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2 Ibid.
3 Ibid.
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The Airport Improvement Program (AIP) provides grants to air-
port sponsors for capital improvement projects related to airport
safety, capacity, and security. S. 3958 would expand the definition
of eligible AIP project costs for future grants to include contractor
incentive payments. The payments would be capped at the lesser
of $1 million or 5 percent of the project’s contract value.
S. 3958 would not provide additional contract authority (a man-
datory form of budget authority) for the AIP or increase the pro-
gram’s existing obligation limitations. Under current law, however,
airport sponsors are authorized to use funds from other Federal
Aviation Administration (FAA) grants for contractor incentive pay-
ments, including those newly provided under the CARES Act (Pub-
lic Law 116–136).
In addition, based on information from the agency, CBO expects
that the FAA would need to develop guidelines and amend grant
language in order to implement the bill’s provisions. CBO esti-
mates that the cost to do so would not be significant. Accordingly,
CBO estimates that implementing the bill would have no signifi-
cant effect on discretionary spending.
On June 23, 2020, CBO transmitted a cost estimate for H.R.
5912, the Expedited Delivery of Airport Infrastructure Act of 2020,
as ordered reported by the House Committee on Transportation
and Infrastructure on February 26, 2020. The two pieces
oflegislation are similar, and CBO’s estimate of their budgetary ef-
fects are the same.
The CBO staff contact for this estimate is Aaron Krupkin. The
estimate was reviewed by H. Samuel Papenfuss, Deputy Director
of Budget Analysis.
REGULATORY IMPACT STATEMENT
In accordance with paragraph 11(b) of rule XXVI of the Standing
Rules of the Senate, the Committee provides the following evalua-
tion of the regulatory impact of the legislation, as reported:
NUMBER OF PERSONS COVERED
S. 3958, as amended, would affect only airport sponsors and the
contractors who perform work at airports. These entities are al-
ready subject to various Federal laws and regulations, so no new
persons would be impacted.
ECONOMIC IMPACT
S. 3958, as amended, would not have an adverse impact on the
Nation’s economy, as it allows airports to offer contractors an in-
centive payment for finishing up a project early if it is beneficial
for safety, capacity, or efficiency.
PRIVACY
S. 3958, as amended, would not have a negative impact on the
privacy rights of individuals.
PAPERWORK
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The Committee anticipates the passage of S. 3958 would not
have a significant impact on paperwork requirements. Airport de-
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velopment projects are already subject to extensive amounts of pa-
perwork, and the addition of provisions to provide incentives to
complete work early would be relatively minimal.
CONGRESSIONALLY DIRECTED SPENDING
In compliance with paragraph 4(b) of rule XLIV of the Standing
Rules of the Senate, the Committee provides that no provisions
contained in the bill, as reported, meet the definition of congres-
sionally directed spending items under the rule.
SECTION-BY-SECTION ANALYSIS
Section 1. Short title.
This section would provide that the bill may be cited as the ‘‘Ex-
pedited Delivery of Airport Infrastructure Act of 2020’’.
Section 2. Allowable cost standards for airport development projects.
This section would allow airports to use AIP grants to provide in-
centive payments for a project should the incentive payment be no
more than 5 percent of the total project cost of $1 million. The Sec-
retary of Transportation would determine whether or not the incen-
tive payment would benefit the efficiency or capacity of the airport,
or result in cost savings, as a result of shortening the project’s du-
ration.
CHANGES IN EXISTING LAW
In compliance with paragraph 12 of rule XXVI of the Standing
Rules of the Senate, changes in existing law made by the bill, as
reported, are shown as follows (existing law proposed to be omitted
is enclosed in black brackets, new material is printed in italic, ex-
isting law in which no change is proposed is shown in roman):
UNITED STATES CODE
* * * * * * *
TITLE 49—TRANSPORTATION
* * * * * * *
Subtitle VII—Aviation Programs
* * * * * * *
PART B—AIRPORT DEVELOPMENT AND NOISE
* * * * * * *
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CHAPTER 471—AIRPORT DEVELOPMENT
* * * * * * *
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Subchapter I—Airport Improvement
* * * * * * *
§ 47110. Allowable project costs
(a) * * *
(b) ALLOWABLE COST STANDARDS.—A project cost is allowable—
ø(1) if the cost necessarily¿ (1)(A) if the cost necessarily is
incurred in carrying out the project in compliance with the
grant agreement made for the project under this subchapter,
including any cost a sponsor incurs related to an audit the Sec-
retary requires under section 47121(b) or (d) of this title and
any cost of moving a Federal facility impeding the project if the
rebuilt facility is of an equivalent size and typeø;¿; or
(B) if the cost is an incentive payment incurred in carrying
out the project described in subparagraph (A) that is to be pro-
vided to a contractor upon early completion of a project, if—
(i) such payment does not exceed the lesser of 5 percent
of the initial construction contract amount or $1,000,000;
(ii) the level of contractor’s control of, or access to, the
worksite necessary to shorten the duration of the project
does not negatively impact the operation of the airport;
(iii) the contract specifies application of the incentive
structure in the event of unforeseeable, non-weather delays
beyond the control of the contractor;
(iv) nothing in any agreement with the contractor pre-
vents the airport operator from retaining responsibility for
the safety, efficiency, and capacity of the airport during the
execution of the grant agreement; and
(v) the Secretary determines that the use of an incentive
payment is likely to increase airport capacity or efficiency
or result in cost savings as a result of shortening the
project’s duration;
(2)(A) * * *
* * * * * * *
(7) * * *
(c) * * *
* * * * * * *
(e) LETTERS OF INTENT.—(1) The Secretary may issue a letter
of intent to the sponsor stating an intention to obligate from future
budget authority an amount, not more than the Government’s
share of allowable project costs, for an airport development project
(including costs of formulating the project) at a primary or reliever
airport. The letter shall establish a schedule under which the Sec-
retary will reimburse the sponsor for the Government’s share of al-
lowable project costs, as amounts become available, if the sponsor,
after the Secretary issues the letter, carries out the project without
receiving amounts under this subchapter.
(2) * * *
* * * * * * *
ø(7) PARTNERSHIP PROGRAM AIRPORTS.—¿
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(7) PARTNERSHIP PROGRAM AIRPORTS.—The Secretary may
issue a letter of intent under this section to an airport sponsor with
an approved application under section 47134(b) if—
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(A) the application was approved in fiscal year 2019; and
(B) the project meets all other requirements set forth in
this chapter.
(f) * * *
* * * * * * *
(i) * * *
* * * * * * *
Æ
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