Chairman McCain, Senator Hollings, Members of the Committee, thank you for the opportunity to appear before you today to discuss the Administration’s proposal to reauthorize our aviation programs.  Recently, I testified before you on the state of the Federal Aviation Administration (FAA).  The question I was most frequently asked at that hearing was when the Administration’s reauthorization proposal would be made available.  I am happy to report that on March 25, 2003, Secretary Mineta sent to Congress the Administration’s reauthorization proposal, the Centennial of Flight Aviation Authorization Act, or Flight-100. 

I would very much like to thank both Secretary Mineta and Deputy Secretary Michael Jackson for their tireless efforts in developing and clearing this proposal.  I would also like to thank them for challenging all of us at the Department of Transportation (DOT) to be Safer, Simpler, and Smarter.  These three principles developed by the Secretary not only form the basis of Flight-100, but they also describe a Department that puts a premium on performance, flexibility, and accountability.  And we at FAA intend to do our part to meet the Secretary’s challenge.

I am also grateful for the dedication and input of Under Secretary Jeff Shane and his Policy office since, when my tenure as Administrator began, the development of a reauthorization proposal was already under way.  To that end, we believe the Administration’s proposal will serve as a strong foundation for the development of reauthorization legislation.

When the Wendell H. Ford Aviation Investment and Reform Act for the 21^st Century (AIR-21) was passed almost three years ago, it contained some truly innovative provisions that improved safety, airport development and system efficiency.  It was landmark legislation that has provided a firm foundation upon which to build.  The Administration’s reauthorization proposal does just that -- it takes its direction from AIR-21 and proposes a four-year authorization that would continue investment in safety, air traffic control modernization and operations, airport capacity improvements, and environmental stewardship. 

With AIR-21 as a foundation, let me take a moment to describe for you the substance of our proposal.

Funding Levels

Because safety remains our number one priority, continued investment in the aviation system is critical.  Although the devastating events of September 11^th continue to impact the number of people flying in this country, recovery of the system is inevitable.  As I discussed with you when I last testified before this Committee, the temporary downturn in air travel affords us a great opportunity to continue to focus on increasing airport capacity without unacceptable disruption to the system.  Under AIR-21, the annual authorized levels for the Airport Improvement Program (AIP) increased substantially, and FAA’s other accounts also received appreciable increases.  The funding levels the Administration recommends for AIP, Facilities and Equipment (F&E), and FAA Operations will support the achievement of several goals.  They maintain the level of investment for major airport capacity projects that provide great benefits to the National Airspace System (NAS).  They enable us to continue to update the NAS infrastructure, expand air traffic control automation and communications tools, and implement needed operational capability and risk-mitigating precision landing navigation.  They support implementation of FAA’s Operational Evolution Plan (OEP) and efforts to accelerate airspace redesign, sector reconfiguration, and chokepoint solutions. 

Although the proposed funding level for Research, Engineering and Development represents a decrease from current levels as a result of the transfer of security technology responsibilities to the Transportation Security Administration (TSA), Flight-100 reflects our continued focus on safety in FAA’s research program.  FAA also benefits from a significant amount of forward-looking research funded by the National Aeronautics and Space Administration (NASA) that is aimed at improving the long-term safety, security, and efficiency of the national airspace.

I believe these funding recommendations are sound and represent a strong signal that investment in safety and in the NAS is critical to a healthy economy and the future of the country.

Programmatic Changes

With respect to the AIP, Flight-100 places major emphasis on helping smaller airports and projects of national significance.  Therefore, the Administration proposes a restructuring of the formulas and set-asides to allow more funds to be targeted to those airports and projects with the greatest dependence on Federal assistance.  In fiscal year 2004, our proposal would transfer more funding than in fiscal year 2003 to small airports.  These airports are essential to the vitality of the NAS and have limited funding options other than Federal assistance.  We estimate this funding shift to be approximately $87 million.  We also recommend simplifying the grant formulas by eliminating unnecessary or outdated set-asides.  For example, the set-aside for the Military Airport Program was created to ensure funding when it was a new concept and it was unclear if it would compete well for grant dollars.  Today, the program is well established and its airports routinely receive more than the amount guaranteed by the existing formulas.  The changes we propose will have the effect of increasing the amount of discretionary funding available, which we believe is essential to help fund the key capacity projects in our national system that we all agree are necessary to prevent future gridlock.

Just as the Committee leadership has identified environmental concerns as a priority in their reauthorization proposal, the Administration’s environmental concerns are cornerstone of Flight-100.  While FAA’s primary mission is to ensure a safe and efficient NAS, we also take our environmental responsibilities quite seriously.  The environmental initiatives in this proposal will contribute to continued success of our investment in safety and capacity projects by providing for prompt and more effective environmental review of significant projects while continuing to exercise strong environmental stewardship.  I know that environmental streamlining is a top priority for this Committee and I look forward to working with you to meet our mutual goal.

We also propose new initiatives to mitigate the impacts of aviation emissions and noise.  For example, we propose to establish voluntary programs to reduce aviation emissions by converting airport infrastructure, airport vehicles, and airport-owned ground-support equipment to new low emission technologies.  In addition, our noise initiatives include using some of the AIP noise set-aside for research aimed at reducing community exposure to aircraft noise or emissions.  We also hope to increase prospective homebuyers’ awareness of areas near airports that are exposed to aircraft noise by requiring federal lenders to inform prospective homebuyers of properties within airport noise contours. 

The aviation insurance program authority in chapter 443 of title 49 is scheduled to expire at the end of 2003.  In the past, reauthorizations of the program were enacted periodically and, if the program lapsed between authorizations, the lapses were brief and without incident.  In the current climate, however, a lapse in the defense and foreign commerce related program could have extreme consequences.  To avoid that future possibility, Flight-100 would repeal the periodic renewal requirement of that portion of the program, thereby making it permanent.  The provisions that enable DOT to offer insurance to airlines flying within the United States would be extended for a two-year period and would be subject to the reauthorization process at that time.  Of course, the actual provision of insurance will remain at the discretion of the President, based on a Presidential Determination Order.

Our proposal sets forth certain structural reforms that could assist agency efforts to transform air traffic control and its supporting functions into an effective, performance-based Air Traffic Organization.  The structural reform provisions in our reauthorization proposal would reinforce this goal by clarifying and enhancing management reforms that Congress has already put in place for the FAA.  

Increasing FAA’s International Profile

Recently, I made a commitment to you, the agency, and the aviation community that I would work to increase the FAA’s international profile.  We all have an obligation to continue to look for innovative ways to use our resources to improve worldwide aviation safety while maintaining our leadership role in the international aviation community.  Toward that end, I recently created a separate International Office.  Mr. Chairman, although FAA faces numerous international challenges over the next five years, I am confident that we will succeed in increasing our leadership role.

Defenders of the Homeland

Finally, for over a year and half Congress, and particularly this Committee, has appropriately focused on security matters.  At this time, I would like to note that the shift of FAA’s former security programs to the TSA was a smooth one.  FAA continues to work closely with TSA even as TSA has transitioned from the Department of Transportation to the Department of Homeland Security.  Although FAA’s role with respect to security has changed, we remain defenders of the Homeland in a very real sense.  Security remains a vital component of safety.  The current threat level means we all have a role to play in protecting our country.  On behalf of the FAA, I am committed to continuing to work closely with TSA to protect our country from having aviation used against us as a weapon of mass destruction.

Conclusion

In conclusion, I believe that the Administration’s proposal will serve as a strong foundation for aviation reauthorization and I look forward to working with this Committee and industry stakeholders towards the development of legislation.  

This concludes my prepared statement.  I am happy to answer your questions at this time.