A new Senate bill overhauls the way aviation is funded in Pennsylvania.

Senate Bill 1365 sponsored by Sen. Daniel Laughlin, R-Erie, with bipartisan support creates a state Aviation Trust Fund with dedicated revenue to pay for airport improvements, service expansion, growth of new technology and workforce development.

SB1365 draws revenue from 0.425% of state sales tax revenue, a hike in aviation fuel taxes, taxes on emerging aviation fuels such as hydrogen and electric power, higher license and inspection fees and federal funding.

The new money would go to improve terminals, runways, lighting and navigation at airports, planning and environmental action, workforce development and real estate tax reimbursement.

A portion of money would be spent on emerging technology such as droneports, vertiports, remote towers and landing pads for vertical aircraft.

SB1365 written with help from the Aviation Council of Pennsylvania would generate an estimated $120 million annually in revenue.

The spending would be split between infrastructure projects and programs focusing on aviation’s future, the council said.

If enacted, SB1365 would change a funding system in place since 1984.

SB1365’s introduction comes with Pennsylvania’s aviation industry undergoing a transformation.

The industry is developing new technology such as advanced air mobility.

This involves research, testing and deployment of drones and modern aircraft that take off and land vertically like helicopters at the site.

The new types of aircraft can be electric-powered.

PennDOT recently designated John Murtha Johnstown Cambria County Airport as the first advanced air mobility site. PennDOT can designate up to four other sites in Pennsylvania.

Meanwhile, the state’s aviation industry faces competition from Ohio and West Virginia.

And runway maintenance and safety remains a concern.

“Even with the additional federal investment provided through the Bipartisan Infrastructure Law, Pennsylvania’s statewide runway pavement condition index has still declined 12 percent over the past five years,” said consultant David Heath with BBP Solutions working with the Aviation Council.

“At the same time, obstruction mitigation and runway approach protection remains statewide safety concerns,” he said.

Move bill on its own

Aviation supporters hope SB1365 can be considered on its own merits.

They don’t want to see it bogged down in a lengthy unresolved debate over a state transportation package. The governor and lawmakers have yet to agree on new funding for mass transit and roads and bridges.

“Pennsylvania’s current transportation funding structure is largely siloed by mode, and aviation cannot afford to wait for what could be a lengthy broader… discussion and negotiation process,” said Heath.

“Airports across Pennsylvania are already facing growing infrastructure, safety maintenance and federal match challenges today,” he said.