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2016 Session

Budget Amendments - HB30 (Floor Approved)

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Funding for Dulles Stabilization (language only)

Item 436 #2h

Item 436 #2h

Transportation
Secretary of Transportation

Language

Page 372, after line 12, insert:

"M. 1. Notwithstanding § 33.2-1527 B., Code of Virginia, out of the funds made available in Item 453, $25,000,000 the first year and $25,000,000 the second year may be provided to the Metropolitan Washington Airports Authority for the sole purpose of reducing the airline cost per enplanement at Washington Dulles International Airport to help attract new domestic and international airlines and retain existing air carriers.  Such funding shall be utilized to reduce the debt service requirements and total operating costs of the Authority.  The first year amount shall not be provided before December 31, 2016.

2.  Provided however, that prior to the release of funds to the Authority the Secretary of Transportation shall certify  in writing to the Governor and the General Assembly that provision of the funds authorized under this item are in the public interest, that the funds will be used to supplement not supplant funds otherwise available to the Authority, and that the Authority has set-forth an attainable plan for long-term cost reductions.  Funding shall further be conditioned upon the following requirements:

a.  No payments shall occur unless and until the Airports Authority has entered into an agreement with the Virginia Department of Transportation that (i) identifies and applies future efforts of the Airports Authority to reduce airline cost per enplanement at Washington Dulles International Airport using financing efficiency savings, available funds, and future revenues in an amount that meets or exceeds the amount of the appropriation provided in this section over the course of the agreement through calendar year 2024, (ii) provides full access to the financial records of the Airports Authority recognizing such financial information will be considered confidential and proprietary and will only be used to verify targets for cost per enplanement reductions, and (iii) sets forth a long-range plan for financial viability of the airport and continued lower levels of cost per enplanement beyond the fiscal year 2016-2018 biennium without additional state support beyond the amounts provided pursuant to § 58.1-538, Code of Virginia; and (iv) sets out a plan to seek approval for the development of portions of property owned by the Airports Authority adjacent to and in the vicinity of the Silver Line Metro Rail station.

b.  No payment shall occur in the second year unless and until the Airports Authority has entered into an agreement with one or more airlines operating at Washington Dulles International Airport which ensures the retention of a domestic airline hub service at the airport at least through calendar year 2024;  and has provided  to the Secretary of Transportation and the Chairmen of the House Appropriations and Senate Finance Committees an estimate of revenues that could be generated by development or disposal of airport property as a means to further reduce long term cost per enplanement.

3.  By December 1, 2016 and December 1, 2017, the Airports Authority shall report to the Secretary of Transportation and the Chairmen of the House Appropriations and Senate Finance Committees on the actual and forecasted changes to the cost per enplanement at the Washington Dulles International Airport over the prior year, what portion of the reduction is attributable to state support, what portion attributable to cost reduction measures implemented by the Authority and what portion is attributable to increased passenger traffic at the Airports.  Such report shall also include an outline of measures to be taken by the Airports Authority to further reduce cost per enplanement through calendar year 2024."



Explanation

(This amendment moves the appropriation for the Metropolitan Washington Airports Authority included in House Bill 30 as introduced from the Department of Aviation to the Office of the Secretary of Transportation and includes a number of requirements governing receipt of these funds to ensure that the amounts are used to effectuate the long-term viability of the airport and do not serve simply as a short-term solution. The state funding shall be premised on the Secretary of Transportation certifying to the Governor and the General Assembly that such expenditures are in the public interest and shall be matched by equal savings generated by the Authority. The amounts provided will be used to reduce outstanding debt service and offset operating costs. Second year funding is contingent upon the Authority entering into a long-term agreement with a hub airline to continue operating as a hub at Dulles airport through at least calendar year 2024. A companion amendment removes the language from the Department of Aviation.)