U.S. Deportment of Transportation Feder al Avlotlon Administration November 24, 2015
TheHonorable Eloy Inos Office ofAirport Compliance and Management Analysis

Governorthe Northern Mariana Is!ands Juan A. Sablan Memorial Bldg Capitol Hill Caller Box I0007 Saipan, MP 96950
Dear Governor: 800 Independence Ava

., SW. Washington, DC 20591

OnNovember 7, 2014, Federal Aviation Administration (FAA) adopted FAA Policy and Procedures Concerning the Use ofAirport Revenue; Proceeds from Taxes on Aviation Fuel, (79 Fed. Reg. 6628) (Amendment). The Amendment clarifies FAA's Policy and Procedures Concerning the Use ofAirport Revenue (64 Fed. Reg. 7696, February 16, 1999) (Revenue 

### U.se Policy) requirement that state or local taxes on aviation fuel (excepttaxes ineffect on December 30, 1987) are considered to be airport revenue subject to the revenue-use requirement. State and local ta'\es in effect on December 30, 1987may qualify for grandfather status and beused for otherthan airport purposes. This Amendment is being applied prospectively. Any states and local governments not currently incompliance**\\~ll** beprovided with a reasonable transition time (notto exceed 3 years from the effective date ofDecember 8, 2014) to come into compliance with the FAA's Policy and Procedures Concerning the Use ofAirport Revenue (64 FR7696, February 16, 1999) (Revenue Use Policy). The FAAunderstood that changes to bring state and local taxes into compliance may require state and local legislation, and thus afford state and local goveffiments the opportunity to develop an Action Plan to detail

. the methodology for administering aviation fuel taxes in accordance with the Amendment.
State and local governments will be expected to submit anAction Planto FAA outlining a strategicplan to come into compliance with the amendment by December 8, 2015. The Action Plan should identify (1) the process to amend anynon-compliantlaws, and restructure general revenues to adapt to the dedication ofaviation fuel tax revenue to airports and or State aviation programs; (2) a commitment to undertake the legislativeprocess; and (3) the timcframe for action within the three year transition period for completion by December 8, 2017.
The first deadline ofsubmitting anAction Planby December 8 is approaching rapidly. Many state and localjurisdictions feel they are compliant with the Amendment. Itwould be prudentfor the state and local governments to contact FAA Office ofAirport Compliance and Management Analysis withanyquestions orconcerns. The FAAhaspostedther I Amendment and other guidance on several issues to the Aviation Fuel Tax Docket (Docket ID : FAA-20 13-0988). [S ee http: // www. reg ulat i ons.gov /# !docke tB rowser:rpp = 25:po=25: D = F AA-20 13-0988] The Action Plan sho uld be submined to: Federal Aviation Ad ninistrat ion Ancntion: Director , Office of Airport Compliance and Mam.gemcnt Analysis

800 **lndep ~ndence**  A ,·enue, SW Washington. DC 20591

2 The fAA is a\'ailable to answer questions and to provide assistance to state and local **goverrune:-~ts** working to become compliant with the .tunendment to the Revenue Use Policy. If you or }Our staff have any questions, please contact Jim Brov.n at (202) 267-5879.

S in cerely, .... )

. J ... J . ' '/ · ' B\ i ·:· ;, : i · :r · : , , . l ' ,. _Director Office of Airport Ccw ' !' liance

2.nd M2..!1agemcnt Analysis

cc: MaryAnn Q. Lizama, Executive Director, Commonwealth Ports Authority Lam sa Larson, Secretary of Finance, CNMI Department of Finance