U.S. Deportment 

of Transportation 

Federal Avlotlon 

Administration 

November 24, 2015 

The Honorable Eloy Inos 

Office of Airport Compliance 

and Management Analysis 

Governor the Northern Mariana Is! ands 

Juan A. Sablan Memorial Bldg 

Capitol Hill 

Caller Box I 0007 

Saipan, MP 96950 

Dear Governor: 

800 Independence Ava., SW. 

Washington, DC 20591 

On November 7, 2014, Federal Aviation Administration (FAA) adopted FAA Policy and 

Procedures Concerning the Use of Airport Revenue; Proceeds from Taxes on Aviation Fuel, 

(79 Fed. Reg. 6628) (Amendment). The Amendment clarifies FAA's Policy and Procedures 

Concerning the Use of Airport Revenue (64 Fed. Reg. 7696, February 16, 1999) (Revenue 

U.se Policy) requirement that state or local taxes on aviation fuel (except taxes in effect 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, 1987 may qualify for 

grandfather status and be used for other than airport purposes. 

This Amendment is being applied prospectively. Any states and local governments not 

currently in compliance \\~ll be provided with a reasonable transition time (not to exceed 3 

years from the effective date ofDecember 8, 2014) to come into compliance with the FAA's 

Policy and Procedures Concerning the Use of Airport Revenue (64 FR 7696, February 16, 

1999) (Revenue Use Policy). The FAA understood 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 an Action Plan to FAA outlining a 

strategic plan to come into compliance with the amendment by December 8, 2015. The 

Action Plan should identify (1) the process to amend any non-compliant laws, and restructure 

general revenues to adapt to the dedication of aviation fuel tax revenue to airports and or 

State aviation programs; (2) a commitment to undertake the legislative process; and (3) the 

timcframe for action within the three year transition period for completion by December 8, 

2017. 

The first deadline of submitting an Action Plan by December 8 is approaching rapidly. Many 

state and local jurisdictions feel they are compliant with the Amendment. It would be 

prudent for the state and local governments to contact FAA Office of Airport Compliance 

and Management Analysis with any questions or concerns. The FAA has posted the 
r I 

Amendment and other guidance on several issues to the Aviation Fuel Tax Docket (Docket 

ID: FAA-20 13-0988). [See 

http://www.regulations.gov/#!docketBrowser:rpp=25:po=25: D=F AA-20 13-0988] 

The Action Plan should be submined to: 

Federal Aviation Adninistrat 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. 

Sincerely, 

.... ) . 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