House sets stage for conference on FAA bill

The House on Thursday passed a bill to reauthorize the Federal Aviation Administration but there are a handful of major issues left to be worked out. 

The House bills comes in at $53.5 billion over three years versus the Senate's $34.5 billion measure for two years, fiscal 2010 through 2012. The House measure provides $12.3 billion for the Airport Improvement Program; $10.1 billion for the FAA Facilities and Equipment; $30.3 billion for FAA Operations and $685.4 million for research, engineering and development. 

The legislation increases the passenger facility charge from $4.50 to $7, which the FAA has estimated would generate $1.3 billion a year. 

The Senate bill raises money from raising the general aviation jet fuel tax rate to 36 cents a gallon, up from 22 cents, expected to raise about $113 million through 2014. Private business jet charters would also see taxes increase from 4.4 cents a galloon to 36 cents. They also would pay a 14-cent surtax on fuel, expected to raise $107 million through 2014. 

In addition, planes weighing 6,000 pounds, which were previously exempt from the taxes, would have to pay into the Airport and Airway Trust Fund, raising about $56 million over 10 years, making only sightseeing planes exempt from the tax.