The FAA Modernization and Reform Act of 2012

The FAA Modernization and Reform Act of 2012, or FAA Reauthorization Bill as it is commonly known by, was signed into law by President Obama on February 14, 2012. This bill provides the FAA with $63.4 billion in funding through 2015. It also sets forth new requirements on the industry and the FAA. The Bill creates several changes and FAA projects that I believe are important in the industry such as more stringent standards for carrying lithium batteries on aircraft, short-term runway incursion reduction goals, researching installation of cockpit doors on cargo aircraft,  authorizating transpacific alternate airports to stay open, data protection for safety reporting programs,  weather and aircraft spacing research, the researching of alternative fuels, and rules for inspecting Part 145 repair stations and foreign repair stations. I believe that the three changes brought by the bill that will have the most impact are the increased funding and establishment of standards for the Next Generation Air Transport System (NextGen), the stance taken against the European Union Emissions Trading Scheme (EU ETS), and the renewing of the Essential Air Service (EAS) program.

First and foremost, the Reauthorization Bill gives a huge boost to the development of NextGen. Prior to this bill, the FAA's NextGen program was becoming critically underfunded, far behind schedule, and lacking of any sort of project master schedule or definitive project leadership. Until the Reauthorization Bill, a 5-10% decrease in government funding for NextGen was expected, which would have delayed the project even farther than its present 5 years behind schedule. One of the main components of NextGen, En Route Automation Modernization, or ERAM, has been found to be seriously flawed during live traffic testing. ERAM is the new ATC computer system that will replace the aging HOST computer system and will be the first step in implementing NextGen. Now having adequate funding from the federal government, the FAA should be able to get the bugs worked out of ERAM faster and more thoroughly, giving a huge boost to the program. The bill also mandates that the position of 'Chief NextGen Officer' be appointed by the Administrator, and will serve 5 year terms. The responsibilities of the Chief NextGen Officer include creating an annual NextGen plan, creating a budget for the program, and general coordination and oversight of the program. More about the Chief NextGen Officer's duties can be found in the FAA Modernization and Reform Act of 2012, page 28. This position means an overall more clear mission and timeline, and greater efficiency of the project. Additionally, the act states that the ADS-B technology to be required for NextGen be identified by the FAA.

Beginning this year the European Union began tracking the carbon emissions of aircraft flying to or from Europe, causing aviation to become a part of the ETS. If the EU gets their way, they will be collecting a bill from all applicable airlines for a large percentage of their total carbon emissions, plus fines for any emissions over their allotted amount. This has caused outrage around the world including in the United States, particularly because the EU will be taxing for the entire duration of a flight to or from Europe, even that portion outside of EU airspace. I believe that the government's stance on this topic in the Reauthorization Bill will be monumental in the outcome of the ETS controversy. It states that the EU should not implement their carbon trading scheme on the aviation community without going through the ICAO. It also states that the "US should use all political and diplomatic tools available to prevent ETS from being applied to US aircraft operators."- arentfox.com . This portion of the Act further strengthens the US's opposition to airline ETS implementation. I believe the inclusion of this subject in the Act is so important because this would be such a huge financial burden to US airlines, and the outcome of the arguments may well determine the future financial health of US airlines, impact ticket prices, and impact future international relations including a possible trade war.

As I mentioned above, the final element of the three most impactful sections of the Reauthorization Bill is the changes to the Essential Air Service program. EAS is a program that grants government subsidies to airlines that operate to select smaller communities that are not necessarily profitable for the airline to operate to on its own. The program greatly enhances air transportation opportunities for those populations not located near a major US airport (not to mention probably provides a few more jobs for us pilots). It is a very successful program, but it has been under some scrutiny by lawmakers. There was an attempt made to completely eliminate EAS, but the Reauthorization Bill has preserved it. In compromise for keeping the program, it will see as much as $50 million less in funding, with reductions every year- $143 million total funding in 2012, $118 in 2013, $107 in 2014, and $93 million in 2015, as seen in a summary of the Act. The legislation also limits the EAS program to airports with 10 or more operations per day and must be located within 175 miles of a large or medium hub airport (except in Alaska or Hawaii), and prohibits any more airports from applying to the EAS program. I do believe it is important that many communities located far from hub airports maintain the availability of commercial air transportation. It is a service that I do believe should be easily available to all Americans. I believe that this program does raise the standard of living of America as a whole. With the reduction in funding for EAS, airline service to some small airports will inevitably be cut, leaving many travelers with a much longer journey. The cut in funding and stricter requirements may reduce the profitability of some regional airlines being that they were receiving basically free money to sell seats on their aircraft. This will also leave some people without the jobs that the airlines previously created in their towns, and tax revenues will decrease. It is however better than the alternative of this program ending altogether.