HJR 18 OPPOSE FED AVIATION FUEL TAX INCREASE  CHAIR KOOKESH announced the consideration of HJR 18. [CSHJR 18(TRA) was before the committee.] 2:08:04 PM SONIA CHRISTENSEN, staff to Representative Johansen, sponsor of HJR 18, said that the resolution is in opposition to the provisions in the Federal Aviation Administration (FAA)'s Next Generation Transportation System Reform Act. 2:08:39 PM SENATOR COWDERY moved to adopt the proposed Senate committee substitute to HJR 8, labeled 25-LS0830\L, as the working document of the committee. There being no objection, version L was before the committee. MS. CHRISTIANSEN repeated her statement regarding the bill's opposition to the FAA Next Generation Transportation System Reform Act. Because of Alaska's geography the state depends uniquely and heavily on aviation for transport of goods and people. The proposed legislation will make this all much more expensive; the FAA should not have the proposed power over Alaska's airports. 2:10:25 PM SENATOR COWDERY commented that the first version of the resolution related to jet airplanes. MS. CHRISTIANSEN explained that the changes were recommended by Senator Olson's office. 2:11:10 PM GINNY AUSTERMAN, staff to Senator Olson, sponsor of companion bill SJR 7, explained that Senator Olson's office requested that propeller-driven and rotor-equipped aircraft be specified in the resolution. 2:11:35 PM SENATOR WIELECHOWSKI asked if jet-driven aircraft are being excluded from the resolution. MS. AUSTERMAN replied that jet-driven aircraft are specifically included in the federal legislation. SENATOR WIELECHOWSKI asked if there is a reason jet-driven aircraft are being excluded. MS. AUSTERMAN said that she couldn't answer. CHAIR KOOKESH said that there were testifiers available. 2:12:39 PM DEE HANSON, Executive Director of the Alaska Airman's Association, said that the association is opposed to the federal act, and explained why airplanes are so vital to Alaskans in terms of everyday life. The proposed federal act will mean that flying will become too expensive for many people who rely on it and will negatively affect flying-related businesses. 2:15:53 PM SENATOR COWDERY asked if Ms. Hanson had the committee substitute before her. She replied that she didn't. SENATOR COWDERY said that the sponsor could explain the differences. 2:16:37 PM MS. CHRISTIANSEN said that the CS adds specific language addressing the types of planes affected. MS. HANSON said that no increase in fuel tax is a good thing for Alaska, no matter the sort of plane. 2:18:18 PM ANDREW CEBULA, Executive Vice-President of Government Affairs for the Aircraft Owners and Pilots Association (AOPA), said that the association urges the passage of the resolution; the federal proposal is not good for the state of Alaska and its pilots and it will be expensive and will reduce state control of airports. He added that the user fees for the current aviation system are sufficient for covering its costs. Currently one doesn't have to pay a fee to fly; the FAA wants to assess fees simply for flying. It will put congress in a reduced position of authority over FAA expenditures. He mentioned that the federal bill will cut airport spending by a million dollars, and Alaskan airports shouldn't have to compete with airports across the country for funding. He commented that Alaska Representative Don Young does not support the federal act either. 2:22:12 PM SENATOR WILKEN asked if Mr. Cebula is not against the FAA initiative, but simply the way it is funded. MR. CEBULA replied that he is only opposed to the way the act is funded. The association has worked closely with testing the Capstone aviation program in Alaska. The Department of Transportation inspector general's office agrees that the improvements needed for the FAA system can be done using the existing tax structure. SENATOR WILKEN asked how the money for needed aviation programs will be provided if the increases are not approved. MR. CEBULA replied that the existing system of fuel taxes can provide the needed revenue for such projects. SENATOR WILKEN asked if existing taxes could simply be increased rather than looking for new donors. MR. CEBULA replied that the existing rates would provide needed revenue, and explained where current aviation taxes come from. 2:25:11 PM SENATOR WILKEN commented that Senator Stevens supported the Capstone program which has been successful in Alaska, and asked if Alaska is being selfish in not wanting to pay increased taxes. MR. CEBULA replied that Alaska has been a great leader in improving technology, and said that the state has been willing to help rather than selfish. Alaska has a unique aviation system, and by passing the resolution the state is saying that it has concerns that would be echoed by a lot of other states. SENATOR WILKEN said that the state has benefited a lot from federal money, and that may put it in a bind regarding refusal to increase taxes. 2:27:43 PM TOM GEORGE, Alaska representative to the Aircraft Owners and Pilots Association, said that the issue is not a matter of Alaskans not wanting to pay; it's just that they're taking issue with the new process. He explained how fees would change after the act if it were passed, and how they could expand significantly. He added that the Capstone program was important to Alaska because the state has a higher accident rate than the rest of the country, but service charges shouldn't be increased at the expense of aviation safety. Part of the federal act is establishing a board, and that would reduce congressional oversight. He asked that the committee support the resolution. 2:31:30 PM WILFRED RYAN, president of the Alaska Air Carriers Association, said that the users of the Alaskan air system already pay their fair share of fees; the fuel tax doesn't benefit small carriers like those in Alaska. The association opposes the elements of the federal act. 2:34:43 PM SENATOR COWDERY said that he would like to hold HJR 18.