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GBTA U.S. Advocacy Newsletter – May 2024

Welcome to the May edition of the GBTA U.S. Advocacy Newsletter designed to keep you up to date with what’s happening in relation to business travel in the US, and how GBTA is advocating on your behalf. 

Summary
GBTA Action in the US

Key Points

➤ General Overview

Following Congress’s recent return from a two-week April recess and many high-priority tasks awaiting completion before the summer recess, April and May were very busy months on Capitol Hill. Following the passage of the FAA reauthorization bill, Congress is expected to now turn to the Coast Guard Authorization Act, the Water Resources Development Act (WRDA), and the NTSB Rail Safety Report which has a tentative June release timeline. Other issues that are continuously both on the peripheral and main-stage include the Israel/Ukraine wars, credit card rewards programs, NDAA, the Farm Bill, the FY25 Appropriations process, data privacy, AI, and much more. 

➤ Transportation

FAA Reauthorization: Congress passed a week-long FAA extension until May 17, ahead of a May 10 expiration due to concerns about potential amendments being added by the Senate that the House might not accept. The extension (H.R. 8289) passed the House by a vote of 385 to 24 and the Senate by unanimous consent, giving the Senate time to manage procedural issues. After the extension, the Senate passed the long-term reauthorization by a vote of 88-4. Senate delays have necessitated four short-term extensions. Over 100 amendments were filed, leading to debates over which ones would be included. On May 7, Sen. Schumer introduced a substitute bill, adding 10 non-controversial amendments, including one addressing airline ticket refund requirements. The negotiated bill passed in the Senate without further amendment. The week of May 13, the House plans to pass the bill under suspension of the rules, likely without amendments. Many Senators are frustrated over the exclusions, including various proposals such as the TSA facial recognition moratorium and Baltimore bridge funding, which were not included in the final bill. The FAA bill was considered the last option for many members to pass legislation in areas important to them.

TSA facial recognition technology amendment: On May 3, an amendment proposed by Senators Jeff Merkley (D-OR) and John Kennedy (R-LA) to the FAA reauthorization bill sought to restrict the use of automated facial matching technology by TSA at airport checkpoints, which could disrupt air travel and compromise security. Advocates argue that such restrictions would not only inconvenience travelers, studies show that it would add an additional 120 million house to TSA lines each year, but also waste taxpayer dollars invested in developing advanced screening technology. The proposal has drawn criticism from industry leaders, who emphasize the importance of biometric technology in enhancing both security and efficiency at airports. Members of the Commission on Seamless and Secure Travel denounced the amendment as misguided and detrimental to aviation security efforts. The amendment was left out of the FAA reauthorization bill. 

Why it matters: Restricting the use of automated facial matching technology at airport checkpoints could significantly increase wait times and create inefficiencies in the travel process, which would particularly impact business travelers who rely on timely and efficient transportation. Longer security screening lines and reduced security measures could deter business travelers from engaging in international travel, thereby hindering global business interactions and potentially leading to economic losses for industries dependent on international trade and commerce.

Other notable exclusions left out of the final bill include:

  • ​​​​A Vote to strip additional DCA slots
  • Increasing the pilot retirement age from 65-67
  • Children’s online privacy legislation
  • Am effort to reign in credit card swipe fee bill
  • Baltimore bridge funding
  • VIP TSA screening language
  • A bipartisan business & child tax deal

Why it Matters: Business travelers need a safe and efficient air travel system. Congress is taking many steps to improve the National Air Space and infrastructure/staffing. President Joe Biden signed the FAA reauthorization bill H.R. 3935 (118) into law on May 16.

GBTA Actions: On May 6, GBTA sent an endorsement letter to Transportation & Infrastructure Chairman Sam Graves (R-MO) and Ranking Member Rick Larsen (D-WA), urging swift passage of the FAA reauthorization bill. GBTA has been pushing for the passage of the FAA Reauthorization bill this year and has encouraged the prioritization of essential travel-related issues. The letter highlighted the need for upgrades to critical FAA systems for safety purposes, studies on the ways to improve accessibility and the overall travel experience for passengers with disabilities, and workforce investments that will result in a long-term pipeline for the aviation industry.

➤ Sustainability

GREET Model: In April, the U.S. Department of the Treasury and IRS released guidance on the Sustainable Aviation Fuel (SAF) Credit, established by the Inflation Reduction Act, aimed at spurring innovation in the aviation industry and reducing climate pollution. This guidance incentivizes the production of SAF with a lifecycle greenhouse gas emissions reduction of at least 50%, offering tax credits ranging from $1.25 to $1.75 per gallon. Additionally, a new GREET model, jointly announced by the SAF Interagency Working Group, provides methodology for SAF producers to determine and measure lifecycle GHG emissions rates. The Treasury Department worked closely with Biden-Harris Administration partners, including the Environmental Protection Agency (EPA), Department of Transportation (DOT), Department of Agriculture (USDA), and Department of Energy (DOE) on the notice. The modified GREET model also integrates key greenhouse gas emission reduction strategies such as carbon capture and storage, renewable natural gas, and renewable electricity. Furthermore, the guidance includes a USDA pilot program encouraging the use of Climate Smart Agriculture (CSA) practices for SAF feedstocks, offering greenhouse gas reduction credits for certain practices like no-till and cover crops, specific to the 40B credit effective for 2023 and 2024. CSA practices are meant to result in environmental benefits, such as improved water quality and soil health. Stakeholders believe that numerous changes will need to be made in the 45Z guidance for it to be workable. Notably, there is significant concern about the requirement that the Climate Smart Ag practices must be bundled – i.e. that they all be done to receive any credit; there is concern that the 10 points of carbon intensity (CI) reduction associated with the CSA bundle is not reflective of actual emissions reductions, which are estimated to be larger; and that the mass balance/traceability requirements will need changes to be implemented.

Why it matters: Aviation emissions are a significant source of business travel emissions, and the transition to more sustainable technologies, including SAF, is critical to decarbonizing the business travel ecosystem. GBTA supports policies to incentivize adherence to SAF standards adoption and make sustainable fuel options more widespread and reliable. 

GBTA Actions: GBTA supported the original Sustainable Skies Act, which became the model for the current SAF tax credit and is an active member of the SAF Coalition.

Senate Farm Bill: On May 1, U.S. Senate Agriculture, Nutrition, and Forestry Committee Chairwoman Debbie Stabenow (D-MI) unveiled the Rural Prosperity and Food Security Act, which contains more than 100 bipartisan bills. The legislation positions the U.S. as a global frontrunner in the Bioeconomy, bolstering biobased innovation by fostering the development of new renewable chemicals, biobased plastics, and other products. These advancements aim to reduce the U.S’ reliance on petroleum while expanding markets for domestic commodities. Notably, the bill enhances the BioPreferred program, geared towards augmenting Federal procurement of biobased products and providing consumers with voluntary labeling information. It also doubles mandatory funding for BioPreferred from $3 million annually to $6 million and sustains mandatory funding for biomanufacturing guaranteed loans. Furthermore, the legislation enhances financing for the manufacturing of biobased products, refining renewable chemicals, and advancing biofuels such as sustainable aviation fuel. By supporting the the transition away from foreign fossil fuels. A full summary of the bill is available here. A section-by-section is available here. 

➤ Travel

Junk fees: On April 24, the Biden-Harris Administration introduced rules to deliver automatic refunds and protect consumers from surprise junk fees in Air Travel. These rules aim to expand consumer protections, simplify refund processes, and are expected to save passengers over half a billion dollars annually in hidden fees. The rule requires Airlines to issue refunds automatically, without requiring passengers to make explicit requests, and within specific timeframes for different payment methods. Refunds must be provided in the original form of payment, such as cash, credit card, or airline miles, and cannot be substituted with vouchers or travel credits unless explicitly chosen by the passenger. These actions build on the Administration’s efforts to promote fairer and more transparent air travel, ensuring passengers receive the refunds and protections they deserve. 

Credit Card Rewards Programs: On May 9, DOT and the Consumer Financial Protection Bureau (CFPB) held a hearing to address concerns regarding credit card airline rewards. The hearing aimed to explore issues related to the transparency and fairness of credit card rewards programs offered by airlines. Both agencies emphasized the importance of ensuring that consumers have access to clear and accurate information about these programs to make informed financial decisions. Transportation Secretary Pete Buttigieg acknowledged the value of rewards programs for consumers but expressed concerns about transparency and consistency in reward offerings. A panel of airline representatives and consumer advocates shared perspectives on the advantages and disadvantages of these programs. While some argued that a lack of competition harms consumers, others, like Allegiant Air’s Scott DeAngelo, emphasized efforts to enhance benefits for cardholders. The American Bankers Association (ABA) criticized the hearing, suggesting it prioritized politics over consumer interests and potentially threatened access to rewards programs. The hearing comes almost a year after Senators Dick Durbin (D-IL) and Roger Marshall (R-KS) introduced the Credit Card Competition Act of 2023. The legislation mandates that credit card issuers with over $100 billion in assets must allow electronic credit transactions to be processed on at least two networks, restricting issuers from favoring affiliated networks or those deemed national security risks. It also prohibits issuers from imposing limitations on transaction routing and requires the designation of payment networks posing security risks or owned by foreign state entities. It is worth noting that Senator Marshall unsuccessfully attempted to have this bill added to the Senate’s FAA reauthorization bill as an amendment earlier this month. 

➤ GBTA Signs Stakeholder Letter to the FCC

GBTA cosigned a letter to the FCC with other travel and transportation-focused organizations raising concerns about the Ligado Order, approving a ground-based 5G network that may interfere with GPS, weather forecasting satellites, and other essential aviation communications technologies. The letter urges the Biden Administration to work with the FCC to stay and ultimately set aside the Order, allowing the project to progress. This action follows an independent technical review by the National Academies of Sciences, Engineering, and Medicine (“NAS”) analyzing the potential interference issues related to the Ligado Order. The NAS report confirms that the proposed operations would cause harmful interference across various deployment scenarios, creating potential safety risks for air travel.

Why it Matters: Aviation communications and safety implications directly impact business travelers and are vital to the air traveler’s experience. These issues can easily impede our ability to travel safely and efficiently. 

GBTA Action: Signing onto the Ligado Order letter is another way GBTA has demonstrated support for passenger safety.

➤ Upcoming Events GBTA U.S. Legislative Summit: June 10-12, 2024, Washington, DC