# Presentation: 717060

## Legislative Update

- FY 2003 Omnibus Bill
- FY 2004 Administration’s Proposal

## FY 2003 Omnibus Bill Highlights

- Small community air service program (run by DOT) received $19.87M
- ATSA Sec. 119 (b) impact on passenger entitlements
- For FY 2003 only
- Uses greater of CY 2000 or 2001 to calculate passenger entitlement

## Non-Primary Entitlement (NPE) Impact

- State apportioned funds (which includes NPE) represent 20% of AIP
- NPE is taken off the top
- As NPE increases, available funds to be apportioned to states decreases
- 385 more locations (nationally) added between FY 02 and FY 03
- FY 03: NPE is 51.7% of total state apportionment (up from 41.9%)
- FY 03: 2,493 locations (nationally) with 198 being in ANM

## FY 2004 Administration Proposal

- Submitted to Congress on March 25, 2003
- Called Centennial of Flight Aviation Authorization Act (aka Flight 100)
- Contains no new taxes or makes no new economic demands

## Flight 100 Philosophy

- Clarify
- Simplify
- Build on AIR 21
- Highlights Only

## Needed Clarification

- Defines what different categories of airports  for the first time
- Defines passenger boardings so that it is clear that the relevant time period being measured is the prior calendar year
- Example is a non hub one which had 0.05% of the national boarding total in the prior year, last calendar year, or each previous year

## Keep It Simple

- Changes noise set-aside from 34% of discretionary to 9% of AIP
- Eliminates MAP set-aside
- Eliminates super reliever set-aside
- When AIP is $3.2B this category of airports would get 2/3rds of 1% of AIP ($6.5% nationally)
-  Qualifying airports: 75,000+ operations; 5,000 feet runway; and a precision instrument landing procedure
- FY 2002, ANM spent $8.8M discretionary at these airports
- Eliminates “small airport fund” formula

## Building On AIR 21

- 4 year proposal (FY 2004 to FY 2007)
- New initiative to reduce emissions
- Converts the ILEAV program from a pilot
- Restructures Essential Air Service (EAS)
- Community incentive via contribution
- More flexibility in tailoring a program
- Provides more funding to smaller airports
- Makes NPE similar to primary passenger entitlements

## Building On AIR 21 continued

- Entitlement Changes
- No longer a function of appropriations level for primary airports
- No doubling of entitlements at large and medium hub airports
- Small hub and non hub would receive double entitlement, with $1M minimum
- removes the funding level requirement for the non-primary apportionment (not tied to $3.2B)
- Make the flexible matching requirements a standard feature of AIP

## Flight 100 Bottom Line for AIP

- “... the Administration proposes a restructuring of the formulas and set asides to allow more funds to be targeted to those airports with the greatest dependence on Federal assistance.”

- Marion C. Blakey
- March 27, 2003

## PFC Streamlining

- Requires consultation with only those carriers whose passengers will be charged a PFC
- Eliminates significant contribution test
- Amends FR policy for most projects
- Airports can publish notice in newspaper instead
- FAA retains authority to impose FR on controversial projects
- Establishes pilot program to reduce application requirements for NH & CS airports
- Secretary retains authority to override

## Flight 100 PFC Streamlining Goal

- “We’ve also changed the Passenger Facility Charge application process to make it faster.  Flight 100 proposes to remove duplicative or unnecessary notice and consultation requirements and eliminate burdensome review standard...”

- Marion C. Blakey
- March 27, 2003

## Conclusion

- Flight 100 is first step in reauthorization process
- Final legislation often looks different than what is proposed