Order 2013-9-15

Served: September 27, 2013

 

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 27th day of September, 2013

In the Matter of the

 SMALL COMMUNITY AIR SERVICE

 DEVELOPMENT PROGRAM

under 49 U.S.C. § 41743 et seq.

DOCKET DOT-OST-2013-0120

ORDER AWARDING GRANTS

Summary

By this Order, the Department awards 25 grants under the Small Community Air Service 

Development Program (Small Community Program) benefitting communities in 22 states to 

assist with the implementation of the air service initiatives proposed in their grant applications. 

The communities, the amount of funding requested by the communities, and the rationale for 

each award are listed in the Appendix to this Order. Award recipients must affirm their grant 

awards by entering into grant agreements with the Department on or before November 15, 2013. 

Award recipients may not seek to be reimbursed funds under the Small Community Program 

until they affirm their grant awards.

Background

The Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (AIR-21), Pub.

L. No. 106-181 (April 5, 2002), established a new pilot program, to be administered by the 

Department of Transportation, designed to help smaller communities enhance their air service 

and address issues related to high airfares.1 AIR-21 authorized the Small Community Program 

through FY 2003. Vision 100-Century of Aviation Reauthorization Act (Vision 100), Pub. L.

No. 108 (December 12, 2003), amended the program, reauthorized it through FY 2008, and 

eliminated the “pilot” status of the program. Appropriations are provided for this program for 

award in FY 2013 pursuant to the FAA Modernization and Reform Act of 2012, Pub. L. No.

 

1 See Orders 2002-6-14 and 2003-9-14 for a complete description of the history of the Small Community Program.
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112-95 (February 14, 2012). For the 2013 grant awards, the Department has up to $11.5 million, 

subject to the availability of funds, to carry out this program.

When selecting applicants to participate in the Small Community Program, the Department is 

statutorily required to apply the following eligibility criteria:

1. As of calendar year 1997, the airport serving the community was not larger than a small 

hub airport, and had insufficient air carrier service or had unreasonably high air fares;

2. The airport presents characteristics, such as geographic diversity or unique circumstances 

that demonstrate the need for, and feasibility of, the Small Community Program;

3. No more than 4 communities or consortia of communities, or a combination thereof, from 

the same state may be selected to participate in the program in any fiscal year;

4. No more than 40 communities or consortia of communities, or a combination thereof, may 

be selected to participate in the program in each year for which the funds are appropriated;

5. An applicant may not receive an additional grant to support the same project;2 and

6. An applicant may not receive an additional grant prior to the completion of its previous 

grant.3 

In addition, the law directs the Department to give priority to those communities or consortia of

communities4 where: (a) air fares are higher than the average air fares for all communities; (b) a 

portion of the cost of the activity contemplated by the community is provided from local, nonairport revenue sources; (c) a public-private partnership has been or will be established to 

facilitate air carrier service to the public; (d) improved service will bring the material benefits of 

scheduled air transportation to a broad section of the traveling public, including businesses, 

educational institutions, and other enterprises whose access to the national air transportation 

system is limited; (e) the funds will be used in a timely manner;

5 and (f) multiple communities 

cooperate to submit a regional or multistate application to consolidate air service into one 

regional airport.

6

The Department is authorized to award grants to communities that seek to provide assistance to:

 An air carrier to subsidize service to and from an underserved airport for a period not to 

exceed 3 years;

 An underserved airport to obtain service to and from the underserved airport; and/or

 An underserved airport to implement such other measures to improve air service both in 

terms of the cost of such service to consumers and the availability of such service, 

including improving air service through marketing and promotion of air service and 

enhanced utilization of airport facilities.7

 

2 However, as stated in our Request for Proposals (Order 2013-6-14), previous grant recipients could submit grant 

proposals and seek funds for new projects. See Order 2013-6-14 for a discussion on same projects.

3 49 U.S.C. § 41743(c).

4 A consortium of communities is defined as a single entity. 49 U.S.C. § 41743.

5 49 U.S.C. § 41743(c)(5)(E).

6 49 U.S.C. § 41743(c)(5)(F).

7 49 U.S.C. § 41743(d).
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On June 24, 2013, the Department issued an Order Soliciting Small Community Grant Proposals 

(Solicitation Order) from communities interested in receiving a grant this year, and requested 

that such proposals be filed no later than July 26, 2013 (Order 2013-6-14). The Solicitation 

Order required each applicant to submit a completed Standard Form 424 and a Summary 

Information schedule to www.grants.gov. Communities were requested to provide information 

that would help in consideration of their grant requests, including details about their existing air 

services, historical services, current service needs and deficiencies, a full description of the 

community’s proposal, plans for implementation, funding requirements, and plans for 

monitoring the success of the project, including modifying or discontinuing funding if the project 

is not meeting expectations.

Drawing on our experience from previous years, the Solicitation Order discussed various issues 

relating to the grant application process, including the sources of local funding, the consideration 

of in-kind contribution, the use of grant funds, and the eligibility to participate by past grant 

recipients and communities now receiving subsidized air service under the Essential Air Service 

(EAS) program. The Solicitation Order further emphasized that communities would be expected 

to meet the financial-contribution commitments that they include in their proposals.

2013 Grant Applications

In response to the Solicitation Order, we received 59 grant applications from communities in 33

states. Collectively, these communities sought more than $28 million in federal assistance to 

support new and ongoing air service development projects. Most of the applications were filed 

by individual communities, with a few filed by consortia of communities. Of the 59

applications, eight (8) applications were from communities with small-hub airports and five (5) 

were from communities now receiving subsidized air service under the Department’s EAS

program. Thirty-three (33) applications were submitted by communities that received grants in 

previous years. As requested, applicants provided information on historical and current air 

service and airfare issues facing their communities, the economic benefits of air service, 

proposed initiatives to remedy air service or airfare problems, and arguments in support of their 

proposals. Nearly all the communities pledged local contributions – funds collected from local, 

state, airport, or in-kind sources – to complement their requests for federal assistance.

As in previous years, this year’s applications included proposals for feasibility studies, new or 

expanded service initiatives, service upgrades, and assorted combinations thereof. Many 

applicants cited both service deficiencies and/or high airfares as problems affecting patronage of 

their air services, and they stated that passengers often drive to other, more distant airports that 

have lower fares or offer a wider range of services to more destinations. Despite these “leakage” 

issues, the communities seeking funds believe that demand for improved service at their local 

airports can be stimulated with financial assistance.

The large majority of applicants specified the need to attract new and/or additional air services to 

their communities. Similar to previous years, a majority of applicants also proposed to 

implement their projects using revenue guarantees or subsidies, together with a variety of 

marketing and promotional initiatives. A critical component of most proposals was funding to 

support community-based marketing and promotional initiatives to stimulate demand and 
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community awareness of local airport services. These efforts are directed at publicizing not only 

the availability of air services, but also the convenience of using the local airport compared to 

more congested air service hubs or other larger airports in the region.

This year, several applications either did not meet the basic eligibility or criteria for participation 

outlined above and were determined ineligible in whole or in part for consideration. Of these 

applications, most were found ineligible because the applicant sought additional funding for the 

same, or essentially the same, project that was funded in a previous grant.

2013 Grant Awards

The Small Community Program is unique in that it encourages and affords communities the 

opportunity to develop their own solutions to their air service problems based on their particular 

needs and circumstances. By providing communities the opportunity to develop and implement 

air service projects tailored to their individual needs, the program aims to maximize the potential 

for success in the communities’ endeavors. Since the program’s inception, the Department has 

sought to maximize the number of participating communities, promote geographic diversity of 

the selections, and support a variety of solutions to the problems identified by applicants in order 

to provide a wide range of approaches for dealing with the challenges faced by similarly-situated 

communities.

With these considerations in mind, we are selecting 25 grant proposals with the objective of 

entering into grant agreements with the communities/consortia identified in the Appendix to this 

Order. Award recipients must enter into grant agreements with the Department before the 

recipients may seek to be reimbursed expenses incurred under their Small Community Program 

projects. In addition, grant recipients are subject to all grant conditions and assurances required 

by federal law, regulations, and executive orders.8 The Department’s grant agreements will be 

transmitted to the selected communities subsequent to the issuance of this Order.

The proposals we selected incorporate the purpose of the statute, and provide opportunities to 

test a variety of approaches to improving small community air service in many regions of the 

country. The attached Appendix provides a description of each project, the basis for its 

selection, and the amount of funding each community requested. As an overview:

 Sixteen (16) of the awards are made to communities proposing revenue guarantee and/or 

marketing support as means to attract new carriers, restore lost service or capacity, and/or 

provide air travelers with access to additional markets. These communities are: 

Savannah, Georgia; Hailey, Idaho; Bismarck, North Dakota; Del Rio, Texas;

Oxnard/Ventura, California; Gunnison, Colorado; Idaho Falls, Idaho; Fort Wayne, 

Indiana; Springfield, Missouri; Wilmington, North Carolina; Stillwater, Oklahoma;

McAllen, Texas; Richmond, Virginia; La Crosse, Wisconsin; Lincoln, Nebraska; and 

Charleston, West Virginia.

 

8 See http://www.dot.gov/policy/aviation-policy/small-community-rural-air-service/SCASDP for applicable 

conditions and assurances.
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 The award to Worcester, Massachusetts, provides marketing support for the newlyannounced service. 

 The awards to Lawton, Oklahoma, and Wenatchee, Washington, will provide assistance 

for marketing campaigns to support existing service and draw more passengers to the 

communities’ airports. Additionally, the award to Klamath Falls, Oregon, is a marketing 

grant for existing air service as well as a passenger education effort to inform passengers 

of the airport’s name change. 

 The award to Wilkes-Barre/Scranton, Pennsylvania, will provide start-up cost offsets and 

marketing to attract new air service. 

 The award to Sanford, Maine, allows the community to conduct a public transportation 

study to address connection deficiencies to nearby airports. 

 Three (3) grant awards at EAS communities – the Mississippi Consortium, Plattsburgh, 

New York, and the Pelican Consortium in Alaska – will be used to market current EAS 

service.

9

Most of the selected communities are contributing financial resources to their respective grant 

projects. In addition, many communities have pledged in-kind contributions in further support of 

their air service initiatives. The local contributions reflect a commitment that is important to the 

potential success of the proposed initiatives. Moreover, nearly all of the communities have 

(1) established robust public-private partnerships to enhance community participation and 

facilitate access to air services, and (2) provided a specific plan and timetable for using their 

grant funds in a timely manner.

Air Service Development Zone

The statute directs the Department to designate an airport in one community awarded a grant 

under this program as an “Air Service Development Zone” (ASDZ), and to work with the 

community or consortium on means to attract business to the area surrounding the airport, to 

develop land-use options for the area, and to provide data, working with the Department of 

Commerce and other agencies. 49 U.S.C. 41743(h). A current grant recipient—with a grant

award period extending into FY2014— remains active as the ASDZ designee. As a result, the

Department did not solicit applications for selection as an ASDZ designee.

 

9 We note that grant applicants currently receiving subsidized air service under the EAS Program are precluded 

from using SCASDP funds to secure air service by other carriers to additional destinations. As we stated in the 

Solicitation Order (Order 2013-6-14), we entertain applications from EAS-subsidized communities that are directed 

toward improving use of the EAS being provided. However, we do not select proposals that would conflict with 

long-standing EAS policies, including financial support through this program of air services that would compete 

with EAS, thus drawing traffic from the already subsidized services and potentially increasing the subsidy 

requirements for those services.
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Grant Agreements

As noted above, the Department will execute grant agreements with each recipient. In the 

Solicitation Order, we stated that a community cannot accept a new Small Community Program 

grant while it is a party to an existing grant under the program, either as an individual community 

or as a member of a consortium. Accordingly, a community still party to an agreement pursuant 

to a SCASDP grant awarded in a previous year must terminate its participation in that agreement 

before it can accept a 2013 grant award and execute a new implementing agreement with the 

Department.

We also stated in the Solicitation Order that communities must establish milestones to monitor 

the progress of the proposed projects to determine whether amendments are necessary or whether 

the grant agreement should be terminated. As we have done in the past, milestones and progress 

reporting requirements will be included in the grant agreements. Federal funds under this grant 

program are disbursed on a reimbursable basis, with the communities expending funds for the 

grant project and then seeking reimbursement. Communities will not be reimbursed for funds 

expended prior to the date on which the grant agreement is executed. In seeking 

reimbursements, grant recipients must provide invoices or other evidence of the expenditure, 

details about the expenditure and how it relates to the grant project, and evidence of payment. In 

addition, the legal sponsor is required to certify that each invoice is relevant to the authorized 

grant project and has been paid. Communities will be required to comply fully with the terms of 

their proposals and the grant agreements.

ACCORDINGLY,

1. We select the communities/consortia listed in the Appendix to receive grant awards under 

the Small Community Air Service Development Program as described in this Order;

2. Grant recipients are subject to all grant conditions and assurances that appear at 

http://www.dot.gov/policy/aviation-policy/small-community-rural-airservice/SCASDP. In addition, to the extent that the grant agreement permits expenditure 

of the awarded Small Community Program funds in any manner that would not be 

permitted for funds received as part of Federal Aviation Administration’s Airport 

Improvement Program (AIP), such permission is strictly limited to the expenditure of the 

Small Community Program funds awarded under the grant agreement. Nothing in the 

grant agreement negates the recipient’s obligations to fully comply with FAA Order 

5100-38C;
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3. Each award recipient must affirm this award by entering into a grant agreement with the 

Department on or before November 15, 2013. Award recipients may not seek to be 

reimbursed under the Small Community Program until they affirm their grant awards;

and

4. A copy of this Order will be served on the legal sponsor for each of the communities 

awarded grants.

By:

SUSAN L. KURLAND

 Assistant Secretary for Aviation

 and International Affairs

(SEAL)

An electronic version of this document is available

at http://www.regulations.gov
State Community Federal Amount Requested Project Descripton Basis for Selection

AK Pelican Consortium $300,000 Market for existing EAS service.

This application aligns with priority and secondselection criteria. The project aligns with the tifunds and public-private partnership priority crcommunity has a defined timeline and several pin place to support the project. The proposed pincrease awareness for the communities, whosthe national air transportation system is limitedthe secondary criterion of location as the commgeographically isolated and unique, attributes ttheir air service access. 

CA Oxnard/Ventura $500,000

Revenue guarantee with marketing to restore air service to one of the airport's top 10 markets. Targeted Las Vegas, Phoenix, or San Francisco Bay Area.

This application aligns with several priority and selection criteria. The project aligns with the locontribution and material benefits priority critercommunity is contributing 16.7% of local fundinwould help in efforts to restore air service. Manbusinesses and universities demonstrated supair service project, as did evidence of a growing population. In addition, the project aligns with secondary criteria as the community has recencompleted a study determining its top ten markcommunity has a letter of support from Allegian

CO Gunnison $350,000

Revenue guarantee with marketing for summer service to Houston, Dallas, or Phoenix.

This application aligns with several priority and selection criteria. The project aligns with the locontribution priority criterion as the community strong match of 50%, and the community has 1higher-than-average air fares. In addition, the paligns with the secondary criteria as the commuletters of support from United and US Airways. 

2013 SCASDP Funded Project Appendix
State Community Federal Amount Requested Project Descripton Basis for Selection

GA Savannah $500,000

Revenue guarantee with marketing support for a low-fare carrier. Targeting JetBlue Airways to Boston.

This application aligns with several priority and selection criteria. The project aligns with the haverage air fares and local contribution priority because the fares at the airport are 14 percent hthe national average, and the community is con42.9% towards the project. In addition, the projwith the secondary criteria because there is a vpublic-private partnership that will be importanensuring the success of the program, and the creceived a letter of support from JetBlue. 

ID Hailey $500,000

Revenue guarantee with marketing to secure nonstop eastern hub connections. Targeting United Airlines to Denver. 

This application aligns with several priority and selection criteria. The project aligns with the locontribution and public-private partnership priobecause the community is contributing 24.7% tproject, and the community has well-establishein place to help ensure success. In addition, thaligns with the secondary criteria as the commuletter of support from United. 

ID Idaho Falls $500,000

Revenue guarantee with marketing for air service to Minneapolis/St. Paul.

This application aligns with several priority and selection criteria. The project will provide mateunder the priority criteria, as the community lacbound air service. In addition, the community igeographically isolated, and the community has support from Delta Air Lines, both of which aligsecondary criteria. 
State Community Federal Amount Requested Project Descripton Basis for Selection

IN Fort Wayne $600,000

Revenue guarantee and marketing to support new service to Philadelphia, targeting US Airways.

This application aligns with several priority critproject aligns with the local contribution, materand timely use of funds priority criteria. The cohas a strong funding match of 70.9%, is targetinCoast air service that would materially benefit band the community provided a clearly-defined tproject plan. 

MA Worcester $350,000

Marketing support for new JetBlue service that starts in November 2013. 

This application aligns with several priority and selection criteria. The project aligns with the locontribution, public-private partnership, and mabenefits priority criteria because the community contributing 37.5% towards the project, has an public-private partnership with funding from the local governments, and the community currenthave air service. In addition, the project aligns secondary criteria as the community has a lettefrom JetBlue. 

ME Sanford $33,180

Study to address public transportation deficiencies to nearby airports.

This application aligns with the material benefitselection criterion because the study will allow community to better understand its transportatchallenges and deficiencies in relation to nearb

MO Springfield $450,000

Revenue guarantee with marketing to establish new air service to Charlotte.

This application aligns with several priority and selection criteria. The project aligns with the locontribution and material benefits priority critercommunity is contributing 15.1% towards the pthe community received many letters of supporbusinesses. In addition, the project aligns with secondary criteria as the community has a lettefrom US Airways.
State Community Federal Amount Requested Project Descripton Basis for Selection

MS Mississippi Consortium $120,000 Marketing for existing EAS service on Silver Airways to Atlanta.

This application aligns with several priority selecriteria. The project aligns with the local contrihigher-than-average air fare priority criteria beccommunities are providing 23.1% towards the pbecause air fares are 30 percent higher than the average. In addition, marketing will assist thescommunities as they all had a carrier change la

NC Wilmington $750,000

Revenue guarantee with marketing to restore westbound connections, targeting American Airlines to Chicago O'Hare.

This application aligns with several priority and selection criteria. The project aligns with the locontribution and public-private partnership prioas the community is contributing 18.8% towardproject, and the community demonstrated a strprivate partnership. In addition, the project aligsecondary criterion of participation as the combroad community support for its proposal. 

ND Bismarck $500,000

Revenue guarantee with marketing for service to Dallas/Fort Worth and/or Chicago.

This application aligns with several priority and selection criteria. The project aligns with the haverage air fares, local contribution, and materipriority criteria because the fares at the airport percent higher than the national average and thcommunity is contributing 45.5% local funding project. In addition, the community has experiepopulation growth as a result of the growth in tindustry. Therefore, the proposed project woulbenefit the traveling public. 
State Community Federal Amount Requested Project Descripton Basis for Selection

NE Lincoln $750,000

Revenue guarantee and marketing support for service to Atlanta, targeting Delta. 

This application aligns with several priority and criteria. The community has higher-than-averagand it has provided financial support for the profactors that align with the priority selection criteaddition, the project aligns with the secondary Delta provided a letter of support.

NY Plattsburgh $200,000 Marketing for existing EAS service. 

This application aligns with with several priority The project aligns with the local contribution anprivate partnership priority criteria because the is contributing 20% towards the project, and the community has demonstrated a committed pubpartnership. 

OK Lawton $195,000

Marketing of existing air service to increase enplanements. 

This application aligns with several priority and selection criteria. The project aligns with the locontribution, higher-than-average air fare, and pprivate partnership priority criteria because the is providing 16.2% towards the project, air fares percent higher than the national average, and thcommunity has demonstrated a strong public-ppartnership. In addition, the project aligns with secondary criterion of participation as the combroad support for its proposal. 

OK Stillwater $447,000

Revenue guarantee for first service to Dallas/Fort Worth.

This application aligns with several priority and selection criteria. The project aligns with the locontribution and public-private partnership prioas the local community and State are contributitowards the project to establish air service for tcommunity. In addition, the project aligns with participation secondary criterion as the commubroad support for its proposal. 
State Community Federal Amount Requested Project Descripton Basis for Selection

OR Klamath Falls $135,000

General airport marketing to increase enplanements and to inform passengers of airport name change.

This application aligns with several priority and selection criteria. The project aligns with the locontribution and public-private partnership critcommunity is contributing 12.9% towards the phas established a strong partnership with particfrom many public and private entities that have a strategic plan. In addition, the project aligns secondary criteria of participation and innovatiocommunity has broad support for its proposal adeveloped an innovative marketing campaign. 

PA Wilkes- Barre/Scranton $575,000 Start-up cost offsets and marketing to attract new air service. 

This application aligns with several priority and criteria. The project aligns with the local contrihigher-than-average air fare priority criteria beccommunity is contributing more than 22% towaproject and its airfares are above the national aproject aligns well with the secondary criteria, aDelta, and US Airways provided letters of suppoproject.

TX Del Rio $500,000

Revenue guarantee to restore air service. Targeting American Eagle to Dallas/Fort Worth.

This application aligns with several priority and selection criteria. The local cash contribution owould help to restore air service at the communaligns with the local contribution priority critericommunity has established a strong public-privpartnership with almost 40 members, who comfunding to the local priority contribution. In addproject aligns with the secondary criteria as the has a letter of support from American Airlines, community is geographically isolated. 
State Community Federal Amount Requested Project Descripton Basis for Selection

TX McAllen $750,000

Revenue guarantee with marketing for nonstop service to Denver.

This application aligns with several priority and criteria. The project aligns with the airfares prioselection criterion as its airfares are higher than national average and one of its targeted carriers fare carrier. The community is also supporting by contributing more than 10% towards the proaligns with the secondary criteria because the preceived a letter of support from Frontier Airline

VA Richmond $750,000

Revenue guarantee with marketing to gain westbound air service, targeting Denver and Salt Lake City.

This application aligns with several priority critproject aligns with the material benefits and loccontribution priority criteria because the propowill serve a geographic area currently lacking wair service, and the community is contributing 6towards the project. The application is also supmajor carrier, aligning with the secondary criter

WA Wenatchee $200,000

Marketing program to bolster enplanements on existing Alaska Horizon service to Seattle/Tacoma.

This application aligns with several priority and criteria. The project aligns with the local contripriority criteria because the community is contrtowards the project. In addition, the project aliginnovation and location secondary criteria as thcommunity proposes innovative marketing conthe community is geographically isolated. 
State Community Federal Amount Requested Project Descripton Basis for Selection

WI La Crosse $750,000

Revenue guarantee with marketing for service to Dallas/Fort Worth.

This application aligns with several priority and criteria. The project aligns with the local contrihigher-than-average air fares, and material benecriteria as the community is contributing more towards the project, and its airfares are 20 percthe national average. In addition, the communireceive material benefits by adding a new hub dto a geographic area not represented by its curservice offerings.

WV Charleston $700,000

Revenue guarantee with marketing and/or a start-up cost offset for nonstop air service to Orlando.

This application aligns with several priority and criteria. The project aligns with the local contripublic-private partnership priority criteria. The is contributing more than 13% towards the proja good public-private partnership. The project the secondary criteria as Allegiant provided a lesupport.