Legislative Analysis for Counties: H.R. 3935, the Securing Growth and Robust Leadership in American Aviation Act

Below is an analysis of the U.S. House version of the FAA reauthorization, as amended in committee and passed by the full House in a bipartisan vote of 351 to 69 on July 20, 2023. Download the analysis here. 

SECS. 101 – 104—Authorizations: Authorizes funding for the FAA from the Airport and Airways Trust Fund, including for:

NACo policy: Counties support funding the Airport and Airway Trust Fund at levels that will meet current and future infrastructure needs and allow for the slow of authorized funds without cuts or delays.

SEC. 135—Airport noise officer: Establishes Aviation Noise Officer to liaise with local communities and make recommendations to the Administrator

NACo policy: Counties believe the federal government should continue the research of air and noise pollution caused by civilian and military aircraft, and enforce existing standards, rules and regulations.

SEC. 223—Protecting general aviation airports from FAA closure: Prevents FAA from closing GA airports unless the Secretary can ensure the closure is necessary and does not have unintended impacts

SEC. 265—Low altitude rotorcraft and powered lift operations: Requires Administrator, within 3 years, to establish low altitude (up to 10K feet) routes for helicopters and air taxis

SEC. 401—AIP definitions: Adds definitions for vertiports and heliports, which will allow these projects to be covered by AIP, and adds new eligibilities, including:

• Construction of childcare facilities for airport employees
• Implementation of digital management systems
• Runway, taxiway and apron improvements necessary to sustain commercial air service following a disaster at a primary airport or a GA airport with special FEMA designation
• Any other activity determined by the Secretary to improve airport maintenance, safety, efficiency or capacity

NACo policy: Counties support flexibility for airport sponsors to invest AIP funds for the financing of intermodal transportation facilities that are an integral component to the growth and sustainability of the airport.

SEC. 406—Price adjustment provisions: Allows USDOT to adjust the federal share upwards to account for inflation in AIP agreements already accepted by an airport sponsor

NACo policy: Counties support an increased federal share on airport development projects to help local governments with inadequate local revenues.

SEC. 408—Small airport letters of intent: Beginning in FY 2028, requires FAA to issue $100 million in letters of intent to small airports (currently only large hub airports are eligible), to provide advanced funding for projects, allowing the airport sponsor to be proactive and facilitate better financing

NACo policy: Counties support innovative financing mechanisms that allow local governments and transportation authorities to leverage federal financing for capital projects.

SEC. 411—Apportionments: Makes significant changes to apportionment formulas, including:

• Doubling amounts for enplanement-based apportionments for primary airports
• Increasing the minimum apportionment that a primary airport may receive in one year from $650,000 to $1.3 million
• Adds new apportionment formula for nonprimary commercial service airports on a sliding scale from $150,000 to $1.3 million based on enplanements
• Increases cargo airport apportionments from 3.5 percent to 4 percent of the total amount available to be apportioned in a fiscal year to the sponsors of airports served by cargo-only aircrafts
• Decreases eligibility threshold for cargo airports with annual total landed weight from 100 million pounds to 25 million pounds, which would make more cargo airports eligible for apportionments
• Designates airports co-located with air reserve stations as primary airports under AIP

SEC. 413—Transfer of AIP supplemental funds to formula program: Authorizes $500 million over five years at $100 million annually, significantly decreasing the amount of discretionary funds available from $5.32 billion (also over five years in this case) in current law and makes other changes, including:

• Decreasing amount of grants funds prioritized for non-hub and small hub airports from 50 percent to 25 percent
• Requiring USDOT to prioritize runway or taxiway safety projects for discretionary awards
• Increasing amount of time funds are available from two years to three years

NACo policy: Counties support retaining the existing budget treatment of AIP to allow small and non-hub airports to compete for supplemental funds that would otherwise be diverted to larger airports through AIP formulas should this provision be enacted.

SEC. 414—Small airport fund: Diverts 50 percent of nonprimary entitlement carryover funds to the SAF to account for a reduction in funds flowing into the funds due to changes to PFC “turnbacks,” which refers to the requirement for large and medium hub airports to return a portion of their AIP formula funds to the FAA when charging a PFC; creates new, 5 percent set-asides for the construction of GA hangars and aprons for GA parking, respectively

SEC. 415—Revision of discretionary categories: Revises formulas and eligibilities within AIP discretionary categories and amends environmental set-aside, including by:

• Retaining the maximum percentage of funding that can be spent under the set-aside at 35 percent but decreases the maximum allowed from $300 million to $200 million
• Removing eligibility for state and local governments to carry out the development and implementation of land use compatibility plans and projects related to the use of land around large and medium airports
• Adding language directing FAA to distribute at least two-thirds of set-aside through grants to sponsors of small, medium and large hub airports

NACo policy: Counties believe the federal government should more fully recognize the ability of counties, as area-wide governments, to plan and coordinate aviation with other modes of transportation and to control land use for future airport development. Counties strongly oppose any provisions that would result in local preemption.

SEC. 416—Terminal development: Streamlines requirements for terminal developments largely by removing current restrictions on types and locations of projects, including parking lots

NACo policy: Counties support increased flexibility for public airport sponsors in dedicating available airport grant funds to finance projects determined to be of the highest priority by the sponsoring county or community.

SEC. 425—National priority system formulas: Requires the FAA, within one year of the bill’s enactment, to update its formulas for determining AIP grant priorities assigned to different projects in consultation with airport sponsors of all sizes and assigns the highest priority to projects that “increase or maintain the safety, efficiency and capacity of the aviation system”

SEC. 430—Populous counties without airports: Requires the FAA to includes a new airport in the NPIAS under certain criteria if the airport is located in the most populous county of a state that does not have an airport currently listed in the NPIAS

NACo policy: Counties support increased flexibility for public airport sponsors in dedicating available airport grant funds to finance projects determined to be of the highest priority by the sponsoring county or community.

SEC. 461—Passenger Facility Charge (PFC) application approvals: Expands the eligible use of PFCs to include all airport-related projects by striking language in current law that restricts PFC-funded projects to those that enhance safety and security, reduce noise or increase carrier competition

NACo policy: Counties support increased flexibility for public airport sponsors in dedicating available airport grant funds to finance projects determined to be of the highest priority by the sponsoring county or community.

SEC. 462—PFC authorization pilot program implementation: Streamlines the PFC approval process by implementing a new pilot program that would allow airports to file a notice of intent to impose a PFC rather than an application to do so

Counties strongly support streamlining federal permitting processes to expedite project delivery and ensure critical projects are delivered efficiently and on budget.

SEC. 471—Streamlining consultation process: Removes requirement for USDOT to consult with the

U.S. Department of the Interior and the U.S. Environmental Protection Agency on runway projects when they may impact the environment, including wildlife and air and water quality

SEC. 473—Expedited environmental review and One Federal Decision: Applies One Federal Decision permit streamlining to all airport capacity enhancement projects, terminal development projects, general aviation projects and certain safety projects, including by directing the FAA to act as the lead agency on coordinating timely and efficient environmental review processes

Counties strongly support expanding the application of the One Federal Decision streamlining directive to airport capital projects.

SECS. 476 – 477—Part 150 noise stands update and Reducing community aircraft noise exposure: Requires the FAA to take several actions to reduce unwanted aviation noise in local communities, including by:

• Requiring revision of federal regulations governing airport noise, including through consultation with airport sponsors, users and impacted communities
• Requiring implementation of noise-mitigating flight procedures
• Working with impacted neighborhoods to modify arrival and departure routes
• Discouraging local encroachment of airport property

NACo policy: Counties believe the federal government should continue the research of air and noise pollution caused by civilian and military aircraft and enforce existing standards, rules, and regulations.

SEC. 478—Categorical exclusions: Excludes additional FAA activities from the environmental review required under the National Environmental Policy Act (NEPA) by making them covered a categorical exclusion (CATEX) and creates additional CATEXs, including for:

• Projects receiving less than $6 million in federal funding
• Projects with a total estimated cost of not more than $35 million (adjustable for inflation) where federal funds make up less than 15 percent of the total cost
• Rehabilitation projects for airport infrastructure damaged by a natural disaster

Counties strongly support the expanded use of categorical exclusions in federal agencies consideration of applying NEPA to an infrastructure project.

SEC. 480—Updating presumed to conform limits: Adds airport hangar projects and airport firefighting facilities to list of FAA projects “presumed to conform” with a State Implementation Plan to meet National Ambient Air Quality Standards, as established by the U.S. Environmental Protection Agency

SEC. 483—Aviation and Airport Community Engagement: Requires the FAA to improve community engagement, including by forming an Airport Community of Interest Task Force, where impacted communities, airport sponsors and local governments are each required members, to provide recommendations through annual reports to Congress, beginning in FY 2025, containing recommendations on how to improve current processes, including intergovernmental and community collaboration and engagement

NACo policy: Counties support a strong intergovernmental partnership and believe a coordinated and balanced transportation system supports the interrelationship and connectivity of transportation infrastructure and services across all levels of government, including county/municipal, state and federal transportation assets.

SEC. 485—Third party study on aviation noise metrics: Requires a National Academies study on the advantages and disadvantages of using the Day-Night Average Sound Level metric, which reflects a person’s cumulative exposure to sound over a 24-hour period, compared to alternatives, including for addressing the impacts of nighttime noise

NACo policy: Counties believe the federal government should continue the research of air and noise pollution caused by civilian and military aircraft, and enforce existing standards, rules and regulations.

SEC. 602—Unmanned aircraft system (UAS) test ranges: Establishes a program to enable a broad variety of testing for UAS systems, including counter-UAS systems and solutions

SEC. 604—Public safety use of tethered UAS: Includes non-governmental public safety organizations, such as law enforcement, fire departments, emergency medical services and others, as eligible users of tethered UAS (has physical link to the ground), and restricts the altitude of these drones to 150 feet above the ground unless otherwise permitted by USDOT

NACo policy: Counties believe we should have the authority to regulate certain aspects of UAS operations to ensure public safety and privacy, including but not limited to certain lower levels of altitude, time-and-day of operation restrictions, and enforcement capabilities.

SEC. 618—UAS use in wildfire response: Directs the FAA to work with the U.S. Forest Service to develop a plan to allow public entities to use UAS in wildfire response efforts, including detection, mitigation and suppression

SEC. 620—Drone infrastructure inspection grant program: Authorizes $50 million in appropriations over five years for a new grant program where counties and other eligible entities can use awards to facilitate the use of drones in public infrastructure projects, such as bridge inspections, where they increase efficiency and safety and reduce costs: