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[House Report 107-496]
[From the U.S. Government Publishing Office]

107th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     107-496

======================================================================

 
SMALL AIRPORT SAFETY, SECURITY, AND AIR SERVICE IMPROVEMENT ACT OF 2002

                                _______
                                

  June 6, 2002.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

     Mr. Young of Alaska, from the Committee on Transportation and 
                Infrastructure, submitted the following

                              R E P O R T

                             together with

                             MINORITY VIEWS

                        [To accompany H.R. 1979]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Transportation and Infrastructure, to whom 
was referred the bill (H.R. 1979) to amend title 49, United 
States Code, to provide assistance for the construction of 
certain air traffic control towers, having considered the same, 
report favorably thereon with an amendment and recommend that 
the bill as amended do pass.
  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Small Airport Safety, Security, and 
Air Service Improvement Act of 2002''.

SEC. 2. INCLUSION OF TOWERS IN AIRPORT DEVELOPMENT.

  Section 47102(3) of title 49, United States Code, is amended by 
adding at the end the following:
                  ``(M) constructing an air traffic control tower or 
                acquiring and installing air traffic control, 
                communications, and related equipment at an air traffic 
                control tower under the terms specified in section 
                47124(b)(4).''.

SEC. 3. CONSTRUCTION OF AIR TRAFFIC CONTROL TOWERS.

  (a) In General.--Section 47124(b)(4) of title 49, United States Code, 
is amended to read as follows:
          ``(4) Construction of air traffic control towers.--
                  ``(A) Grants.--The Secretary may provide grants to a 
                sponsor of--
                          ``(i) a primary airport--
                                  ``(I) from amounts made available 
                                under sections 47114(c)(1) and 
                                47114(c)(2) for the construction or 
                                improvement of a nonapproach control 
                                tower, as defined by the Secretary, and 
                                for the acquisition and installation of 
                                air traffic control, communications, 
                                and related equipment to be used in 
                                that tower;
                                  ``(II) from amounts made available 
                                under sections 47114(c)(1) and 
                                47114(c)(2) for reimbursement for the 
                                cost of construction or improvement of 
                                a nonapproach control tower, as defined 
                                by the Secretary, incurred after 
                                October 1, 1996, if the sponsor 
                                complied with the requirements of 
                                sections 47107(e), 47112(b), and 
                                47112(c) in constructing or improving 
                                that tower; and
                                  ``(III) from amounts made available 
                                under sections 47114(c)(1) and 
                                47114(c)(2) for reimbursement for the 
                                cost of acquiring and installing in 
                                that tower air traffic control, 
                                communications, and related equipment 
                                that was acquired or installed after 
                                October 1, 1996; and
                          ``(ii) a public-use airport that is not a 
                        primary airport--
                                  ``(I) from amounts made available 
                                under sections 47114(c)(2) and 47114(d) 
                                for the construction or improvement of 
                                a nonapproach control tower, as defined 
                                by the Secretary, and for the 
                                acquisition and installation of air 
                                traffic control, communications, and 
                                related equipment to be used in that 
                                tower;
                                  ``(II) from amounts made available 
                                under sections 47114(c)(2) and 
                                47114(d)(3)(A) for reimbursement for 
                                the cost of construction or improvement 
                                of a nonapproach control tower, as 
                                defined by the Secretary, incurred 
                                after October 1, 1996, if the sponsor 
                                complied with the requirements of 
                                sections 47107(e), 47112(b), and 
                                47112(c) in constructing or improving 
                                that tower; and
                                  ``(III) from amounts made available 
                                under sections 47114(c)(2) and 
                                47114(d)(3)(A) for reimbursement for 
                                the cost of acquiring and installing in 
                                that tower air traffic control, 
                                communications, and related equipment 
                                that was acquired or installed after 
                                October 1, 1996.
                  ``(B) Eligibility.--An airport sponsor shall be 
                eligible for a grant under this paragraph only if--
                          ``(i)(I) the sponsor is a participant in the 
                        Federal Aviation Administration contract tower 
                        program established under subsection (a) and 
                        continued under paragraph (1) or the pilot 
                        program established under paragraph (3); or
                          ``(II) construction of a nonapproach control 
                        tower would qualify the sponsor to be eligible 
                        to participate in such program;
                          ``(ii) the sponsor certifies that it will pay 
                        not less than 10 percent of the cost of the 
                        activities for which the sponsor is receiving 
                        assistance under this paragraph;
                          ``(iii) the Secretary affirmatively accepts 
                        the proposed contract tower into a contract 
                        tower program under this section and certifies 
                        that the Secretary will seek future 
                        appropriations to pay the Federal Aviation 
                        Administration's cost of the contract to 
                        operate the tower to be constructed under this 
                        paragraph;
                          ``(iv) the sponsor certifies that it will pay 
                        its share of the cost of the contract to 
                        operate the tower to be constructed under this 
                        paragraph; and
                          ``(v) in the case of a tower to be 
                        constructed under this paragraph from amounts 
                        made available under section 47114(d)(2) or 
                        47114(d)(3)(B), the Secretary certifies that--
                                  ``(I) the Federal Aviation 
                                Administration has consulted the State 
                                within the borders of which the tower 
                                is to be constructed and the State 
                                supports the construction of the tower 
                                as part of its State airport capital 
                                plan; and
                                  ``(II) the selection of the tower for 
                                funding is based on objective criteria, 
                                giving no weight to any congressional 
                                committee report, joint explanatory 
                                statement of a conference committee, or 
                                statutory designation.
                  ``(C) Limitation on federal share.--The Federal share 
                of the cost of construction of a nonapproach control 
                tower under this paragraph may not exceed 
                $1,100,000.''.
  (b) Conforming Amendments.--Section 47124(b) of such title is 
amended--
          (1) in paragraph (3)(A) by striking ``Level I air traffic 
        control towers, as defined by the Secretary,'' and inserting 
        ``nonapproach control towers, as defined by the Secretary,''; 
        and
          (2) in paragraph (3)(E) by striking ``Subject to paragraph 
        (4)(D), of'' and inserting ``Of''.
  (c) Savings Clause.--Notwithstanding the amendments made by this 
section, the 2 towers for which assistance is being provided on the day 
before the date of enactment of this Act under section 47124(b)(4) of 
title 49, United States Code, as in effect on such day, may continue to 
be provided such assistance under the terms of such section.

SEC. 4. NONAPPROACH CONTROL TOWERS.

  (a) In General.--The Administrator of the Federal Aviation 
Administration may enter into a lease agreement or contract agreement 
with a private entity to provide for construction and operation of a 
nonapproach control tower as defined by the Secretary of 
Transportation.
  (b) Terms and Conditions.--An agreement entered into under this 
section--
          (1) shall be negotiated under such procedures as the 
        Administrator considers necessary to ensure the integrity of 
        the selection process, the safety of air travel, and to protect 
        the interests of the United States;
          (2) may provide a lease option to the United States, to be 
        exercised at the discretion of the Administrator, to occupy any 
        general-purpose space in a facility covered by the agreement;
          (3) shall not require, unless specifically determined 
        otherwise by the Administrator, Federal ownership of a facility 
        covered under the agreement after the expiration of the 
        agreement;
          (4) shall describe the consideration, duties, and 
        responsibilities for which the United States and the private 
        entity are responsible;
          (5) shall provide that the United Sates will not be liable 
        for any action, debt, or liability of any entity created by the 
        agreement;
          (6) shall provide that the private entity may not execute any 
        instrument or document creating or evidencing any indebtedness 
        with respect to a facility covered by the agreement unless such 
        instrument or document specifically disclaims any liability of 
        the United States under the instrument or document; and
          (7) shall include such other terms and conditions as the 
        Administrator considers appropriate.

                       Purpose of the Legislation

    The reported bill (H.R. 1979) was introduced by Mr. Wicker. 
It would allow a small airport to use its Airport Improvement 
Program (AIP) grant money to build or equip an air traffic 
control tower that would be operated under the FAA's contract 
tower program. New tower construction and equipment purchases 
would be eligible for funding using AIP entitlements and the 
AIP State apportionment. Reimbursement for past construction or 
equipment purchases would be available only from an airport's 
AIP entitlement. To be eligible for this funding, airports 
would have to qualify for the contract tower program and pay a 
10% local share. The bill would also allow FAA to contract with 
a private company to both build and operate the tower.

                Background and Need for the Legislation

    It is well established that safety is enhanced when air 
traffic controllers guide a plane through the skies and onto 
the runway. However, many smaller airports lack an air traffic 
control tower. As a result, passengers and pilots do not 
benefit from the safety enhancements provided by air traffic 
controllers. Pilots are on their own, responsible for seeing 
and avoiding other planes.
    Currently, the FAA is responsible for building the towers 
that house the controllers. However, FAA's Facilities and 
Equipment (F&E) construction budget is not large enough to pay 
for the construction of towers at many smaller airports. Yet 
many of these smaller airports have commercial passenger 
service or are very active general aviation airports. 
Passengers flying there may be coming from big cities where air 
traffic control is commonplace. In any case, passengers and 
pilots in the small cities are entitled to the same level of 
safety as those using the larger airports.
    Recognizing that FAA's facilities and equipment (F&E) 
control tower construction budget is limited, many smaller 
airports are willing to use their Airport Improvement Program 
(AIP) grant money (49 U.S.C. Chapter 471) to build the tower. 
However, under current law (49 U.S.C. section 47102(3)) 
contract tower construction is not listed as eligible for 
funding under the AIP program.
    This bill would change the law to allow small airports to 
use their AIP money to build a new or replacement FAA contract 
tower. The FAA could then contract with a private company to 
actually operate the tower. The FAA now contracts with private 
companies to staff visual flight rule (VFR) towers at 217 
airports in 46 States. This contract tower program has 
benefited from consistent bipartisan backing in Congress. Its 
track record at small airports shows that it improves air 
safety, efficiency and security as well as enhancing regional 
airline service opportunities in rural areas, providing 
significant savings to the FAA in air traffic control costs, 
and increasing economic productivity in smaller communities 
nationwide. Further, the program's track record has been 
validated in several comprehensive audits by DOT's Inspector 
General and is endorsed by participating airports and aviation 
system users.
    Given the benefits and support for the contract tower 
program, additional actions to enhance it are warranted. By 
opening up another source of funding for tower construction, 
this bill will enhance the existing contract tower program and 
increase safety at small airports. It does not cost the Federal 
government any additional money because the AIP grant money is 
already provided for in AIR 21 (Public Law 106-181, 114 Stat. 
65). The reported bill merely gives the airport and the FAA 
another purpose (tower construction) for which this grant money 
can be used.
    While this bill allows Federal grant money to be used for 
tower construction, the Committee believes that FAA should 
continue its current practice of allowing airports to build 
their towers to FAA contract tower specifications instead of 
the specifications used when towers are built with funds 
derived from the FAA's facilities and equipment (F&E) account. 
The approximately 20 airports that have built towers themselves 
and are now in the contract tower program constructed these 
towers for about $1 million by using FAA contract tower 
specifications. Similar towers built in the past by the FAA 
through the F&E program cost about $4 million. Allowing 
contract tower specifications to be used is consistent with 
past practice and will ensure that AIP money is used wisely and 
cost-effectively.
    The authority in the reported bill to utilize AIP funds 
applies not only to the construction of FAA contract air 
traffic control towers but also to the equipage of those tower 
facilities. AIP funds may be used to purchase all performance-
based tower equipment such as communications and weather-
related equipment, voice switching devices, radios, wind speed 
and direction systems, altimeter indication equipment, voice 
recorders, ATC light guns, stand alone terminal radar displays 
(TRDs), and other related equipment.
    In particular, the committee believes TRDs, as supported by 
NTSB's April 27, 2001 recommendation, A-01-09, greatly enhance 
safety at VFR control towers. The determination of whether a 
TRD may be purchased and utilized should be based on the 
performance of the equipment. If a TRD is generating verifiable 
accurate information and performing in compliance with the 
manufacturer's specifications then it should be considered for 
use in contract towers.
    Terminal radar displays (TRD) are a form of radar that 
gives the controllers another set of eyes to make sure planes 
are where the pilots say they are. These displays are strongly 
supported by the airports and controllers because they allow 
them to verify pilots' positions and take corrective action 
when needed. The controllers in VFR non-approach control towers 
(such as those in the contract tower program) cannot use these 
tower displays to give enroute instructions to pilots (i.e. 
``turn right heading 180 degrees''). It simply gives the 
controllers another set of eyes to see what is going on within 
their area of responsibility near the airport. There have been 
a few accidents at both contract towers and FAA-operated VFR 
towers that might have been prevented if they had had a TRD.
    As a matter of fairness, the reported bill also allows for 
limited reimbursement of costs incurred after October 1, 1996 
for tower construction and equipment purchases. As explained 
above, building air traffic control towers enhances safety. At 
large airports, the FAA will build the tower. But many smaller 
airports have to build the towers themselves. Some smaller 
airports took the initiative and built towers at their airports 
to enhance safety without waiting for Congress to act. Airports 
that did so should be applauded for their actions, not 
penalized. Prohibiting reimbursement would effectively penalize 
these small airports for taking the initiative and building air 
traffic control towers themselves. It would not be fair if 
those airports that delayed tower construction were rewarded 
with Federal grants while those that acted before the reported 
bill was enacted were denied similar Federal grants.
    The reported bill allows reimbursement only from an 
airport's AIP entitlement. This is money that the airport has a 
right to as a matter of the formula in the law (49 U.S.C. 
section 47114). The Committee has determined that in this case 
an airport should not be prevented from using its own money for 
any eligible airport purpose, including reimbursement.
    Allowing reimbursement here does not set a new precedent. 
There are at least three other sections of the AIP chapter (49 
U.S.C. Chapter 471) where this is done. Two (sections 47119 and 
47135(c)(2)(D)) involve reimbursement for terminal development 
and one (section 47110(b)(2)(C)) allows reimbursement generally 
for any project built after 1996 at a primary airport (an 
airport with at least 10,000 passengers).
    Reimbursement here will not take away money from capacity 
enhancing or other important projects. The bill only allows 
reimbursement from money allocated by law to these small 
airports. No money is taken away from other airports to pay 
this reimbursement.
    Airports seeking reimbursement will not be able to avoid 
the statutory and administrative requirements that apply to 
other airports receiving Federal AIP grants. This bill 
explicitly requires that airports will get reimbursement only 
if they complied with certain requirements that existed when 
the tower was built.

                       Summary of the Legislation

Section 1. Short title

    The title of this Act is the ``Small Airport Safety, 
Security, and Air Service Improvement Act of 2002.''

Section 2. Inclusion of towers in airport development

    This section makes constructing and improving a FAA 
contract air traffic control tower and acquiring equipment for 
that tower eligible for Federal funding under the Airport 
Improvement Program.

Section 3. Construction of air traffic control towers

    Subsection (a) amends the section of the law governing the 
FAA's contract tower program.
    Subparagraph (A) sets forth the rules for making AIP grants 
for the construction and equipage of air traffic control 
towers.
    Subparagraph (i) sets forth the rules for making such 
grants to primary airports (those airports with more than 
10,000 passengers per year).
    Subparagraph (I) allows a primary airport to use its 
passenger or cargo entitlement for the construction or equipage 
of air traffic control towers.
    Subparagraph (II) allows a primary airport to use its 
passenger and cargo entitlements to be reimbursed for costs 
incurred after October 1, 1996 in building an air traffic 
control tower as long as it complied with the existing 
specified statutory and administrative requirements.
    Subparagraph (III) allows a primary airport to use its 
passenger or cargo entitlement for reimbursement for the cost 
of acquiring air traffic control equipment that was acquired or 
installed after October 1, 1996.
    Subparagraph (ii) sets forth the rules for making AIP 
grants to general aviation airports and small commercial 
service airports to fund the construction and equipage of air 
traffic control.
    Subparagraph (I) states that these airports can use their 
general aviation entitlement as well as state apportionment 
funding for the construction or improvement of an air traffic 
control tower and for the acquisition and installation of air 
traffic control equipment.
    Subparagraph (II) allows these airports to use their 
general aviation entitlement to receive reimbursement for the 
costs of constructing an air traffic control tower if those 
costs were incurred after October 1, 1996 and the airport 
complied with the specified statutory and administrative 
requirements.
    Subparagraph (III) allows these airports to use their 
general aviation entitlement to receive reimbursement for the 
cost of acquiring and installing air traffic control equipment 
if that equipment was acquired or installed after October 1, 
1996.
    Subparagraph (B) states that an airport will be eligible 
for the AIP grants described above only if it (1) is a 
participant in the FAA's contract tower program or building the 
tower would qualify it to participate in that program; (2) the 
airport will pay a 10% local share for the cost of constructing 
or equipping the tower; (3) the Secretary accepts the proposed 
tower into the contract tower program and certifies that 
funding will be sought to pay the costs of operating the tower; 
(4) the airport certifies that it will pay its share of the 
cost of the operation of the tower, if any, and (5) where state 
apportionment funds will be used to build a tower, the 
Secretary certifies that the FAA has consulted with the state 
in which the tower will be located and the state supports the 
construction of the tower as part of the state's airport 
capital plan and selection of the tower for funding is based on 
objective criteria rather than on a congressional earmark.
    Subparagraph (C) limits the Federal share for the cost of 
constructing a tower to $1.1 million.
    Subsection (b) describes the type of control towers that 
could benefit from the funding opportunities in the reported 
bill. They were formally known as Level I air traffic control 
towers but are now known as non-approach control towers in the 
FAA's airway manual. Non-approach control towers are towers 
where controllers authorize aircraft to land or takeoff at the 
airport where the tower is located or to transit Class D 
airspace. The primary function of a non-approach control tower 
is the sequencing of aircraft in the traffic pattern and on the 
landing area. Non-approach control towers also separate 
aircraft operating under instrument flight rule clearances from 
approach controls and centers. They provide ground control 
services to aircraft, vehicles, personnel, and equipment on the 
airport.
    Subsection (c) makes clear that the two towers that were 
made eligible for funding under section 131 of Air 21 (P.L. 
106-181, 114 Stat 78, 49 U.S.C. 47124(b)(4)) may continue to be 
funded under the terms of that section.

Section 4. Non-approach control towers

    As an alternative to the approach described in Section 3, 
this section allows the FAA to enter into an arrangement with a 
private entity where that entity would both construct and 
operate an air traffic control tower at a small airport. This 
section is based on section 3 of Public Law 106-407, 114 Stat. 
1758.

            Legislative History and Committee Consideration

    H.R. 1979 was introduced by Congressman Wicker on May 23, 
2001 and referred to the Committee on Transportation & 
Infrastructure. The Committee's Subcommittee on Aviation met on 
April 18, 2002 and adopted, by voice vote, an amendment in the 
nature of a substitute offered by Subcommittee Chairman Mica. 
Subsequently, by voice vote, the Subcommittee approved and 
ordered the bill reported to the full Committee. The full 
Committee approved the bill and favorably reported it to the 
House, by voice vote on April 24, 2002, with a quorum present 
after defeating an Oberstar amendment to strike the 
reimbursement provisions.

                             Rollcall Votes

    Clause 3(b) of rule XIII of the House of Representatives 
requires each committee report to include the total number of 
votes cast for and against on each rollcall vote on a motion to 
report and on any amendment offered to the measure or matter, 
and the names of those members voting for and against. There 
was one rollcall vote to strike the reimbursement provisions 
which follows.
    Bill No.: H.R. 1979.
    Short title: Contract Towers.
    Amendment or matter voted on: Oberstar Amendment.
    Total votes: 34 yeas; 35 nays.

----------------------------------------------------------------------------------------------------------------
         Representative            Yeas      Nays     Present     Representative     Yeas      Nays     Present
----------------------------------------------------------------------------------------------------------------
Mr. Young, Chairman............  ........        X   .........  Mr. Oberstar.....        X   ........  .........
Mr. Petri......................  ........        X   .........  Mr. Rahall.......        X   ........  .........
Mr. Boehlert...................  ........  ........  .........  Mr. Borski.......        X   ........  .........
Mr. Coble......................  ........        X   .........  Mr. Lipinski.....        X   ........  .........
Mr. Duncan.....................  ........  ........  .........  Mr. DeFazio......        X   ........  .........
Mr. Gilchrest..................  ........  ........  .........  Mr. Clement......        X   ........  .........
Mr. Horn.......................  ........        X   .........  Mr. Costello.....        X   ........  .........
Mr. Mica.......................  ........        X   .........  Ms. Norton.......        X   ........  .........
Mr. Quinn......................  ........        X   .........  Mr. Nadler.......        X   ........  .........
Mr. Ehlers.....................  ........        X   .........  Mr. Menendez.....        X   ........  .........
Mr. Bachus.....................  ........        X   .........  Ms. Brown........        X   ........  .........
Mr. LaTourette.................  ........        X   .........  Mr. Barcia.......        X   ........  .........
Mrs. Kelly.....................  ........        X   .........  Mr. Filner.......        X   ........  .........
Mr. Baker......................  ........        X   .........  Ms. Johnson......        X   ........  .........
Mr. Ney........................  ........        X   .........  Mr. Mascara......        X   ........  .........
Mr. Thune......................  ........  ........  .........  Mr. Taylor.......        X   ........  .........
Mr. LoBiondo...................  ........        X   .........  Ms. Millender-           X   ........  .........
                                                                 McDonald.
Mr. Moran......................  ........        X   .........  Mr. Cummings.....        X   ........  .........
Mr. Pombo......................  ........        X   .........  Mr. Blumenauer...        X   ........  .........
Mr. DeMint.....................  ........        X   .........  Mr. Sandlin......        X   ........  .........
Mr. Bereuter...................  ........  ........  .........  Ms. Tauscher.....        X   ........  .........
Mr. Simpson....................  ........        X   .........  Mr. Pascrell.....        X   ........  .........
Mr. Isakson....................  ........        X   .........  Mr. Boswell......        X   ........  .........
Mr. Hayes......................  ........        X   .........  Mr. McGovern.....        X   ........  .........
Mr. Simmons....................  ........        X   .........  Mr. Holden.......        X   ........  .........
Mr. Rogers.....................  ........        X   .........  Mr. Lampson......        X   ........  .........
Mrs. Capito....................  ........        X   .........  Mr. Baldacci.....        X   ........  .........
Mr. Kirk.......................  ........        X   .........  Mr. Berry........        X   ........  .........
Mr. Brown......................  ........        X   .........  Mr. Baird........        X   ........  .........
Mr. Johnson....................  ........        X   .........  Ms. Berkley......        X   ........  .........
Mr. Kerns......................  ........        X   .........  Mr. Carson.......        X   ........  .........
Mr. Rehberg....................  ........        X   .........  Mr. Matheson.....        X   ........  .........
Mr. Platts.....................  ........        X   .........  Mr. Honda........        X   ........  .........
Mr. Ferguson...................  ........  ........  .........  Mr. Larsen.......        X   ........  .........
Mr. Graves.....................  ........        X   .........
Mr. Otter......................  ........        X   .........
Mr. Kennedy....................  ........        X   .........
Mr. Culberson..................  ........        X   .........
Mr. Shuster....................  ........        X   .........
Mr. Boozman....................  ........        X   .........
Mr. Sullivan...................  ........        X   .........
----------------------------------------------------------------------------------------------------------------

                      Committee Oversight Findings

    With respect to the requirements of clause 3(c)(1) of rule 
XIII of the Rules of the House of Representatives, the 
Committee's oversight findings and recommendations are 
reflected in this report.

                          Cost of Legislation

    Clause 3(c)(2) of rule XIII of the Rules of the House of 
Representatives does not apply where a cost estimate and 
comparison prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act of 
1974 has been timely submitted prior to the filing of the 
report and is included in the report. Such a cost estimate is 
included in this report.

                    Compliance with House Rule XIII

    1. With respect to the requirement of clause 3(c)(2) of 
rule XIII of the Rules of the House of Representatives, and 
308(a) of the Congressional Budget Act of 1974, the Committee 
references the report of the Congressional Budget Office 
included below.
    2. With respect to the requirement of clause 3(c)(4) of 
rule XIII of the Rules of the House of Representatives, the 
performance goals and objective of this legislation are to 
facilitate the construction of air traffic control towers at 
small airports.
    3. With respect to the requirement of clause 3(c)(3) of 
rule XIII of the Rules of the House of Representatives and 
section 402 of the Congressional Budget Act of 1974, the 
Committee has received the following cost estimate for H.R. 
1979 from the Director of the Congressional Budget Office.

                                     U.S. Congress,
                               Congressional Budget Office,
                                      Washington, DC, June 4, 2002.
Hon. Don Young,
Chairman, Committee on Transportation and Infrastructure, House of 
        Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 1979, the Small 
Airport Safety, Security, and Air Service Improvement Act of 
2002.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Rachel 
Milberg.
            Sincerely,
                                           Steven Lieberman
                                    (For Dan L. Crippen, Director).
    Enclosure.

H.R. 1979--Small Airport Safety, Security, and Air Service Improvement 
        Act of 2002

    Summary: H.R. 1979 would allow the Federal Aviation 
Administration (FAA) to provide some airport operators with 
grants to construct and equip certain types of control towers. 
Based on information from the FAA and historical spending 
patterns for this program, CBO estimates that implementing H.R. 
1979 would cost $47 million over the 2003-2007 period, subject 
to appropriation of the necessary amounts. H.R. 1979 would not 
affect direct spending or receipts; therefore, pay-as-you-go 
procedures would not apply.
    H.R. 1979 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA). 
Public airports that participate in the contract tower program 
would be required to provide 10 percent of the costs covered 
under the grant; such costs would be incurred voluntarily.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 1979 is shown in the following table. 
For this estimate, we assume that the bill will be enacted near 
the start of 2003 and that the necessary amounts will be 
provided each year. The costs of this legislation fall within 
budget function 400 (transportation).

----------------------------------------------------------------------------------------------------------------
                                                                       By fiscal year, in millions of dollars--
                                                                    --------------------------------------------
                                                                       2003     2004     2005     2006     2007
----------------------------------------------------------------------------------------------------------------
                                CHANGES IN SPENDING SUBJECT TO APPROPRIATION \1\

Estimated Authorization Level......................................        1        5        6        7        7
Estimated Outlays..................................................        5       13       12        9        8
----------------------------------------------------------------------------------------------------------------
\1\ A portion of the estimated outlays would come from contract authority (a mandatory form of budget authority)
  already provided to FAA under current law. Use of that authority, however, is subject to approval in annual
  appropriations acts.

    Basis of estimate: CBO estimates that implementing H.R. 
1979 would cost $47 million over the 2003-2007 period, assuming 
appropriation of the necessary amounts. CBO estimates that 
providing federal grants for control tower construction would 
cost about $22 million over the 2003-2007 period. In addition, 
CBO estimates that federal assistance for operating these 
towers would cost an additional $25 million over this period.

Control Towers

    H.R. 1979 would authorize the FAA to provide grants to 
airport operators to construct and equip control towers. Such 
grants could be no more than $1.1 million per tower. Based on 
information from the FAA and the American Association of 
Airport Executives, CBO estimates that the FAA would provide 
grants for about 20 control towers over the next five years. 
Under the bill, grants would be made from the Airport 
Improvement Program (AIP), which is funded with contract 
authority (a mandatory form of budget authority) through 2003. 
H.R. 1979 would not increase the total amount of contract 
authority available to the Airport Improvement Program. 
Expenditures from AIP contract authority are governed by 
obligation limitations contained in annual appropriation acts, 
and are considered discretionary spending. Assuming 
appropriation acts increase the obligation limitation for this 
program by the necessary amounts, CBO estimates that 
implementing this provision of H.R. 1979 would cost about $22 
million over the 2003-2007 period.

Operation of Control Towers

    Additional towers constructed under the bill would be 
eligible to participate in the FAA's Contract Tower program. 
Under that program, the FAA shares the cost of operating towers 
with airport operators. The FAA spends an average of $350,000 a 
year to support each contract tower in this program. CBO 
estimates that supporting 20 additional towers would cost about 
$7 million a year. Because the FAA would incur operating costs 
only after the towers are constructed and equipped, CBO 
estimates that the FAA would spend about $25 million over the 
2003-2007 period to support additional towers, assuming 
appropriation of the necessary amounts.
    Pay-as-you-go considerations: None.
    Intergovernmental and private-sector impact: H.R. 1979 
contains no intergovernmental or private-sector mandates as 
defined in UMRA. Public airports that participate in the 
contract tower program would be required to provide 10 percent 
of the costs covered under the grant; such costs would be 
incurred voluntarily.
    Previous CBO estimate: On September 4, 2001, CBO 
transmitted a cost estimate of S. 633, the Aviation Delay 
Prevention Act, as ordered reported by the Senate Committee on 
Commerce, Science, and Transportation on August 2, 2001. S. 633 
has provisions similar to the grants program that would be 
authorized by H.R. 1979, and CBO estimates that the cost of 
this grant program would be the same under both bills.
    Estimate prepared by: Federal Costs: Rachel Milberg; Impact 
on State, Local, and Tribal Governments: Susan Sieg Tompkins; 
and Impact on the Private Sector: Jean Talarico.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                   Constitutional Authority Statement

    Pursuant to clause (3)(d)(1) of rule XIII of the Rules of 
the House of Representatives, committee reports on a bill or 
joint resolution of a public character shall include a 
statement citing the specific powers granted to the Congress in 
the Constitution to enact the measure. The Committee on 
Transportation and Infrastructure finds that Congress has the 
authority to enact this measure pursuant to its powers granted 
under article I, section 8 of the Constitution.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act. (Public Law 104-4).

                        Preemption Clarification

    Section 423 of the Congressional Budget Act of 1994 
requires the report of any Committee on a bill or joint 
resolution to include a statement on the extent to which the 
bill or joint resolution is intended to preempt state, local or 
tribal law. The Committee states that H.R. 1979 does not 
preempt any state, local, or tribal law.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act are created by this 
legislation.

                Applicability to the Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act (Public Law 
104-1).

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, 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 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

TITLE 49, UNITED STATES CODE

           *       *       *       *       *       *       *

SUBTITLE VII--AVIATION PROGRAMS

           *       *       *       *       *       *       *

                 PART B--AIRPORT DEVELOPMENT AND NOISE

CHAPTER 471--AIRPORT DEVELOPMENT

           *       *       *       *       *       *       *

Sec. 47102. Definitions

  In this subchapter--
          (1) * * *

           *       *       *       *       *       *       *

          (3) ``airport development'' means the following 
        activities, if undertaken by the sponsor, owner, or 
        operator of a public-use airport:
                  (A) * * *

           *       *       *       *       *       *       *

                  (M) constructing an air traffic control tower 
                or acquiring and installing air traffic 
                control, communications, and related equipment 
                at an air traffic control tower under the terms 
                specified in section 47124(b)(4).

           *       *       *       *       *       *       *

Sec. 47124. Agreements for State and local operation of airport 
                    facilities

  (a) * * *
  (b) Air Traffic Control Contract Program.--(1) * * *

           *       *       *       *       *       *       *

          (3) Contract air traffic control tower pilot 
        program.--
                  (A) In general.--The Secretary shall 
                establish a pilot program to contract for air 
                traffic control services at [Level I air 
                traffic control towers, as defined by the 
                Secretary,] nonapproach control towers, as 
                defined by the Secretary, that do not qualify 
                for the contract tower program established 
                under subsection (a) and continued under 
                paragraph (1) (in this paragraph referred to as 
                the ``Contract Tower Program'').

           *       *       *       *       *       *       *

                  (E) Funding.--[Subject to paragraph (4)(D), 
                of] Of the amounts appropriated pursuant to 
                section 106(k), not more than $6,000,000 per 
                fiscal year may be used to carry out this 
                paragraph.
          [(4) Construction of air traffic control towers.--
                  [(A) In general.--Notwithstanding any other 
                provision of this subchapter, the Secretary may 
                provide grants under this subchapter to not 
                more than two airport sponsors for the 
                construction of a low-level activity visual 
                flight rule (level 1) air traffic control 
                tower, as defined by the Secretary.
                  [(B) Eligibility.--A sponsor shall be 
                eligible for a grant under this paragraph if--
                          [(i) the sponsor would otherwise be 
                        eligible to participate in the pilot 
                        program established under paragraph (3) 
                        except for the lack of the air traffic 
                        control tower proposed to be 
                        constructed under this subsection; and
                          [(ii) the sponsor agrees to fund not 
                        less than 25 percent of the costs of 
                        construction of the air traffic control 
                        tower.
                  [(C) Project costs.--Grants under this 
                paragraph shall be paid only from amounts 
                apportioned to the sponsor under section 
                47114(c)(1).
                  [(D) Federal share.--The Federal share of the 
                cost of construction of an air traffic control 
                tower under this paragraph may not exceed 
                $1,100,000.]
          (4) Construction of air traffic control towers.--
                  (A) Grants.--The Secretary may provide grants 
                to a sponsor of--
                          (i) a primary airport--
                                  (I) from amounts made 
                                available under sections 
                                47114(c)(1) and 47114(c)(2) for 
                                the construction or improvement 
                                of a nonapproach control tower, 
                                as defined by the Secretary, 
                                and for the acquisition and 
                                installation of air traffic 
                                control, communications, and 
                                related equipment to be used in 
                                that tower;
                                  (II) from amounts made 
                                available under sections 
                                47114(c)(1) and 47114(c)(2) for 
                                reimbursement for the cost of 
                                construction or improvement of 
                                a nonapproach control tower, as 
                                defined by the Secretary, 
                                incurred after October 1, 1996, 
                                if the sponsor complied with 
                                the requirements of sections 
                                47107(e), 47112(b), and 
                                47112(c) in constructing or 
                                improving that tower; and
                                  (III) from amounts made 
                                available under sections 
                                47114(c)(1) and 47114(c)(2) for 
                                reimbursement for the cost of 
                                acquiring and installing in 
                                that tower air traffic control, 
                                communications, and related 
                                equipment that was acquired or 
                                installed after October 1, 
                                1996; and
                          (ii) a public-use airport that is not 
                        a primary airport--
                                  (I) from amounts made 
                                available under sections 
                                47114(c)(2) and 47114(d) for 
                                the construction or improvement 
                                of a nonapproach control tower, 
                                as defined by the Secretary, 
                                and for the acquisition and 
                                installation of air traffic 
                                control, communications, and 
                                related equipment to be used in 
                                that tower;
                                  (II) from amounts made 
                                available under sections 
                                47114(c)(2) and 47114(d)(3)(A) 
                                for reimbursement for the cost 
                                of construction or improvement 
                                of a nonapproach control tower, 
                                as defined by the Secretary, 
                                incurred after October 1, 1996, 
                                if the sponsor complied with 
                                the requirements of sections 
                                47107(e), 47112(b), and 
                                47112(c) in constructing or 
                                improving that tower; and
                                  (III) from amounts made 
                                available under sections 
                                47114(c)(2) and 47114(d)(3)(A) 
                                for reimbursement for the cost 
                                of acquiring and installing in 
                                that tower air traffic control, 
                                communications, and related 
                                equipment that was acquired or 
                                installed after October 1, 
                                1996.
                  (B) Eligibility.--An airport sponsor shall be 
                eligible for a grant under this paragraph only 
                if--
                          (i)(I) the sponsor is a participant 
                        in the Federal Aviation Administration 
                        contract tower program established 
                        under subsection (a) and continued 
                        under paragraph (1) or the pilot 
                        program established under paragraph 
                        (3); or
                          (II) construction of a nonapproach 
                        control tower would qualify the sponsor 
                        to be eligible to participate in such 
                        program;
                          (ii) the sponsor certifies that it 
                        will pay not less than 10 percent of 
                        the cost of the activities for which 
                        the sponsor is receiving assistance 
                        under this paragraph;
                          (iii) the Secretary affirmatively 
                        accepts the proposed contract tower 
                        into a contract tower program under 
                        this section and certifies that the 
                        Secretary will seek future 
                        appropriations to pay the Federal 
                        Aviation Administration's cost of the 
                        contract to operate the tower to be 
                        constructed under this paragraph;
                          (iv) the sponsor certifies that it 
                        will pay its share of the cost of the 
                        contract to operate the tower to be 
                        constructed under this paragraph; and
                          (v) in the case of a tower to be 
                        constructed under this paragraph from 
                        amounts made available under section 
                        47114(d)(2) or 47114(d)(3)(B), the 
                        Secretary certifies that--
                                  (I) the Federal Aviation 
                                Administration has consulted 
                                the State within the borders of 
                                which the tower is to be 
                                constructed and the State 
                                supports the construction of 
                                the tower as part of its State 
                                airport capital plan; and
                                  (II) the selection of the 
                                tower for funding is based on 
                                objective criteria, giving no 
                                weight to any congressional 
                                committee report, joint 
                                explanatory statement of a 
                                conference committee, or 
                                statutory designation.
                  (C) Limitation on federal share.--The Federal 
                share of the cost of construction of a 
                nonapproach control tower under this paragraph 
                may not exceed $1,100,000.

           *       *       *       *       *       *       *

                             MINORITY VIEWS

    Although we support the concept of making contract air 
traffic control towers eligible for federal assistance under 
the Airport Improvement Program (AIP), we cannot support the 
reported bill because it includes provisions that would 
undermine our federal programs to enhance airport safety, 
security, and efficiency.
    The major problem with the reported bill is that it makes 
AIP funds available to reimburse airports for towers they have 
already built. The federal government is not indifferent to the 
benefits of these towers. It is giving assistance to these 
towers by paying the costs of operating them. As a condition of 
this assistance, the airports agreed that, although the federal 
government would pay the costs of operating the towers, the 
government would not pay the costs of constructing the towers. 
The bill ordered reported by the Committee would allow airports 
to abandon their side of the agreement and obtain reimbursement 
for construction.
    Moreover, use of limited AIP funds for reimbursement of 
work already done would make these funds unavailable for safety 
and security needs. Funds used for reimbursement would not be 
available for the $252 million in safety, security, and 
capacity needs currently requested by the 26 airports 
potentially eligible for reimbursement. The needed improvements 
include airport enhancements to augment security in response to 
September 11; improvements to bring runway safety areas up to 
full Federal Aviation Administration (FAA) design standards; 
improvements to protect aircraft and passengers in the event an 
aircraft inadvertently leaves the runway; runway and taxiway 
construction to reduce the incidence of runway incursions; 
reconstruction of critical airfield pavements to maintain 
existing airport capacity; and construction of new or expanded 
runways and taxiways to increase capacity.
    A further problem with the report bill is that it does not 
require airports seeking reimbursement to have complied with 
all of the statutory and regulatory requirements that apply to 
an AIP project. This means that, under the bill, there can be 
reimbursement for construction that did not comply with such 
laws as the Fair Labor Standards Act or the Uniform Relocation 
Act. The result will be two classes of contract towers: those 
that were built in compliance with federal law, and those that 
were not, but get a windfall nonetheless.
    No precedent exists for reimbursement for projects that 
were not eligible for AIP when they were constructed. 
Reimbursement for towers establishes a terrible precedent when 
we are faced with enormous security, safety, and capacity 
needs, and available resources are limited by the pressures on 
the federal budget created by reduced revenues and the added 
expenses of the war on terrorism.
    In Committee, Congressman Oberstar offered an amendment to 
strike the reimbursement provisions and correct the flaws in 
the overall bill. The amendment was rejected 35 to 34, on a 
party-line vote.

  1. Reimbursement for Previously Constructed Projects Undermines the 
                      Airport Improvement Program

    The Airport Improvement Program was designed to enhance the 
safety, security, and efficiency of our National Airport System 
(NAS). It is a forward-looking program that encourages airports 
to grow in a manner that benefits local communities as well as 
the NAS. Members of the Transportation and Infrastructure 
Committee have a responsibility not only to their constituent 
airports, but also to the NAS as a whole. Improvements, or the 
lack thereof, of one airport impact the security, safety, and 
efficiency of the NAS.
    The reported bill, however, would undermine the purpose of 
AIP and, as a result, delay security, safety and efficiency 
enhancements to the NAS. The reported bill allows scarce AIP 
resources to be used to provide reimbursement to airport 
sponsors that built or equipped contract towers between October 
1, 1996, and the present--when these towers were not AIP 
eligible and the airports did not have any reasonable 
expectations of reimbursement. The funds used to reimburse 
airports for non-eligible AIP projects will not be available 
for new projects that would enhancesecurity, safety, and 
capacity, including necessary projects already identified by the 
airport sponsors seeking reimbursement.

  A. Twenty-Six Airports, $252 Million in Airport Sponsor-Identified 
                                 Needs

    Under the reimbursement provision of the reported bill, 26 
airports would be eligible to seek reimbursement for the costs 
of contract towers previously built and paid for. The FAA has 
advised that, on average, the federal share of each of these 
towers would reach the $1.1 million ceiling specified in the 
bill. If all 26 airports applied for reimbursement, a total of 
$28.6 million would be used for work already completed.\1\ 
These funds would be unavailable to finance future security, 
safety, and capacity-enhancing airport capital projects at the 
26 airports potentially eligible for reimbursement for contract 
towers built since 1996.
---------------------------------------------------------------------------
    \1\ The reported bill also permits the use of AIP entitlement funds 
to reimburse airport sponsors for the cost of acquiring and installing 
air traffic control, communications and related equipment that was 
installed after October 1, 1996. Because equipment was an ineligible 
AIP-project, FAA has no records or projections on the amount of 
entitlement funds necessary to reimburse those costs. Nevertheless, it 
would be an additional drain on the AIP program that would prevent 
security, safety, and capacity-enhancements to the NAS.
---------------------------------------------------------------------------
    Indeed, these 26 airports have identified and requested 
from the FAA a total of $252 million in federal funding for 
future AIP-eligible projects in the National Plan for 
Integrated Airports (NPIAS). The NPIAS lists the infrastructure 
development projects eligible for federal aid that will be 
required over a five-year period to meet the needs of all 
segments of civil aviation.
    Among the 26 airports' requests are $6.3 million in AIP-
eligible security projects, including access control, perimeter 
fencing, patrol vehicles, infrared cameras, closed circuit 
monitors, terminal modifications, blast analyses and berm 
construction--all needed in the wake of the horrific events of 
September 11. Necessary safety enhancements for which these 26 
airports are seeking future funding include the installation 
and rehabilitation of lighting systems, acquisition of deicing 
systems and snow removal equipment, installation of weather 
reporting equipment, installation of wildlife fencing, beacon 
replacement, rehabilitation and relocation, and installation of 
runway visual guidance systems. Capacity-enhancing projects for 
which future funding is requested by the 26 airport sponsors 
include runway extensions, taxiway rehabilitations, apron 
expansions, and construction of cargo aprons and GA taxiways.
    The majority (17) of the 26 airports receive a maximum of 
$150,000 per year in entitlement funds, authorized by our 
Committee in AIR 21, etc. If these airports seek full 
reimbursement of $1.1 million for building their towers, they 
will be using their entitlement funds for the next seven years. 
During this time, the entitlement funds will not be available 
for new projects to enhance safety and security.

             B. No Reasonable Expectation of Reimbursement

    Under the contract tower program, the FAA pays the cost of 
operating the tower. At the time the 26 towers were built, FAA 
did not have authority to use AIP funds to reimburse the 
airports for the costs of constructing the towers. When 
airports entered the contract tower program, they agreed that 
funding for construction of the contract tower was not part of 
the deal; thus, they had no expectation of reimbursement.
    The contract for the program expressly stated that 
construction of a tower was not part of the Contract Tower 
program. When the individual airport sponsor applied to 
participate in the Contract Tower program, it received a letter 
that stated:

          The program provides for air traffic control (ATC) 
        services only; tower construction is outside the scope 
        of the program.

    Once accepted into the Contract Tower program, these 
airports signed a ``Contract Airport Traffic Control Tower 
Operating Agreement'' that plainly stated:

          In consideration of the air traffic control (ATC) 
        service being provided to the Airport Sponsor by the 
        Government at [the airport], the Airport Sponsoragrees 
to the following terms and conditions at no cost to the Government: 1. 
The Airport Sponsor shall provide an airport traffic control tower 
(ATCT) structure meeting all applicable state and local standards * * * 
(emphasis added)

    Thus, 26 airport sponsors had full knowledge that the 
contract towers were ineligible for AIP funding when the towers 
were built. If Congress were to pass the reported bill, which 
would be contrary to the unambiguous agreements between the 
airport sponsor and the FAA Contract Tower Program, we would 
call into question any contract or agreement the FAA has 
entered or will enter into with any airport sponsor. During the 
next AIP reauthorization debate, we would be likely to find 
ourselves debating reimbursement for other types of non-
eligible AIP projects or for the non-federal share of an AIP-
project that a sponsor agreed to pay.
    The supporters of reimbursement argue that, by failing to 
reimburse the airports for the non-AIP-eligible contract 
towers, Congress will ``penalize'' them for taking the risk to 
build contract towers, which have enhanced air safety. While we 
applaud the airports for their foresight and proactive steps to 
enhance safety, federal funding is limited and cannot be 
expected to fund every safety, security, and capacity-
enhancement project. It is not a ``penalty'' to ask an airport 
to live up to the terms of an agreement it entered into 
voluntarily, to obtain federal funding for the costs of 
operating a tower.
    The continued success of the United States aviation system 
is dependent on a partnership between the airport sponsors, 
local authorities, and the federal government--with each party 
contributing its fair share. By providing reimbursement for 
these non-eligible projects, Congress will undermine the 
willingness of airport sponsors to enhance safety and security 
without an expectation of federal funding. Federal funds are 
not infinite; some burden must continue to fall on airport 
sponsors to fund projects and ensure safety and security for 
their communities and users.

 c. some towers failed to meet benefit/cost analysis for full federal 
                         funding of controllers

    At least five of the Contract Towers potentially eligible 
for reimbursement do not meet the benefit/cost ratio for full 
funding of the expenses of operating the tower. These airports 
agreed not only to build the tower but to also pay some of the 
costs of the controllers because the benefits from safety and 
efficiency were less than the upfront investment and on-going 
operating costs for the expense of operating the tower. If the 
benefits of the tower are limited such that the federal 
government is unwilling to pay the entire cost of operation, 
why should the government retroactively pay the cost of 
constructing the tower?

2. The Reported Bill Exempts Projects From AIP Statutory and Regulatory 
                              Requirements

    The reported bill only requires an airport to demonstrate 
that it complied with Davis Bacon, Small Business, and Veterans 
Preference requirements, but not the rest of the statutory and 
administrative requirements, which govern AIP projects, 
including the Fair Labor Standards Act, Uniform Relocation 
Assistance and Real Property Acquisition Policies Act, National 
Historic Preservation Act, Age Discrimination Act, Copeland 
Antikickback Act, and Contract Work Hours and Safety Standards 
Act. This means that contract towers constructed prior to 
becoming AIP-eligible would be reimbursed with AIP funds, but 
subject to lower standards than all other AIP projects, 
including new contract towers built pursuant to the reported 
bill.

  3. The Reported Bill Includes No Requirement That the Reimbursement 
               Funds Be Used for an AIP-Eligible Project

    The reported bill places no restriction or requirement on 
the use of the reimbursement funds. With the 26 airports 
potentially eligible for reimbursement having identified and 
sought funding for $252 million in future AIP work, it would be 
irresponsible for this Committee and for Congress as a whole to 
permit airport sponsors to use $28.6 million in federal 
reimbursement funds for anything other than their identified 
safety, security, and capacity needs.

                               Conclusion

    There is no precedent in existing law for providing 
reimbursements with AIP funds for projects that were ineligible 
for AIP funding at the time of construction. Some may try to 
find a precedent in statutory language added in 1996 (49 U.S.C. 
47110(b)(2)(C)), but that provision looked forward, not 
backward, to ensure that future airport improvement projects, 
begun after the date of enactment, would not be stalled in the 
event Congress were delayed in reauthorizing the AIP program.
    Moreover, the provision in existing law requires the 
project to have been an eligible project at the time the cost 
was incurred, and it requires airport sponsors to have complied 
with all statutory and administrative requirements applicable 
to AIP projects. Again, the reported bill only requires 
compliance with three of numerous statutory and administrative 
requirements, and provides reimbursement for towers that were 
not eligible at the time the cost was incurred without 
requiring the reimbursement funds to be used for future AIP-
eligible projects.
    We agree with the forward-looking aspect of the reported 
bill, which permits new construction and equipage of contract 
towers with primary, cargo, and General Aviation entitlement 
funds, and with limited use of state apportionment 
discretionary funds.
    But, no precedent exists for reimbursement of non-AIP-
eligible projects, and it is a precedent we are unwilling to 
establish in an era of enormous security, safety and capacity 
needs, and with federal resources limited by reduced revenues 
and the expenses of the war on terrorism and related domestic 
security needs.
    We, therefore, oppose the reported bill.

                                   Jim Oberstar.
                                   William O. Lipinski.
                                   Jerry F. Costello.
                                   Robert Menendez.
                                   Elijah E. Cummings.
                                   Michael M. Honda.
                                   Shelley Berkley.
                                   Rick Larsen.
                                   Frank Mascara.
                                   Jerrold Nadler.
                                   Nick Rahall.
                                   Corrine Brown.
                                   Brian Baird.
                                   Tim Holden.
                                   Eddie Bernice Johnson.
                                   Bob Clement.
                                   Leonard L. Boswell.
                                   Juanita Millender-McDonald.
                                   Marion Berry.
                                   Bob Borski.
                                   Bill Pascrell, Jr.
                                   Brad Carson.
                                   Nick Lampson.
                                   John Baldacci.
                                   Ellen Tauscher.
                                   Jim McGovern.
                                   Max Sandlin.
                                   Bob Filner.
                                   Eleanor H. Norton.
                                   Jim Matheson.
                                   Jim Barcia.

                                
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