House passes dramatic FAA reform & job-creation legislation

The FAA Reauthorization and Reform Act of 2011 (HR 658) was approved by a vote of 223 to 196.

"After four years of delay, this long overdue legislation will help jumpstart the aviation industry, which accounts for nearly 10% of our economy, help expand employment, and wake up federal officials asleep at the job," said Transportation and Infrastructure Committee Chairman John L. Mica (R-FL). "The bill saves $4 billion by streamlining and consolidating FAA programs and facilities, increasing the use of cost effective programs, modernizing our air traffic control system, and increasing the role of the private sector in facility operations.

"The federal government can do more with less, and this bill does so by requiring the FAA to identify savings in a manner that does not negatively impact aviation safety. Our aviation system is critical to the U.S. economy, and this bill ensures the continued vitality and competiveness of the nation's aviation industry," Mica said.

"The last reauthorization was in 2003. It expired in 2007," said Aviation Subcommittee Chairman Tom Petri (R-WI). "Since then, we have had a series of 18 short-term extensions of the old program. That's no way to run a federal agency. The Federal Aviation Administration and all those who depend on it deserve the predictability that a long-term reauthorization will provide."

"This bill gives the aviation industry and consumers the kind of stability they need to ensure American aviation remains the best in the world," said Aviation Subcommittee Vice-Chair Chip Cravaack (R-MN). "At the same time, it acknowledges that - especially in these tough economic times - the federal government must make spending cuts while at the same time providing necessary services and maintaining our current high safety levels."

An effort to pass an onerous labor amendment was beaten back on the Floor. The amendment would have struck bill language that restores 75 years of union certification rules for aviation and railway workers under the Railway Labor Act (RLA). Those certification rules were changed unilaterally in May 2010 by the 3-member National Mediation Board (NMB). Such changes are properly the authority of the Congress. As intended under the RLA, the bill ensures that a majority of a workforce that will be affected must vote in favor of union representation.

The NMB rule change and the amendment are nothing more than favors to organized labor that make it easier to certify a union but no less difficult to decertify one.

H.R. 658 contains a number of provisions to improve FAA programs, increase the efficiency of the agency, and create savings.

The bill streamlines processes and provides funding for priority NextGen air traffic control modernization projects planned in the next four years. It sets deadlines and metrics for better measurement of NextGen progress to ensure more effective cost management and accountability.

The legislation allows for expansion of the cost effective contract tower program, which allows airports to utilize privately operated, more efficient control towers (under FAA contract, regulation and supervision). Increased use of this program will create the potential to save approximately $400 million over four years.

H.R. 658 establishes a process for the consolidation of aging, obsolete and unnecessary FAA facilities, which will result in significant savings. The bill institutes a risk-based approach to inspections of foreign repair stations in a manner that protects U.S. jobs and respects bilateral agreements. The bill also reforms the Essential Air Service (EAS) Program, providing more savings.

The House and Senate must now meet in conference to negotiate the bills approved by each chamber.