Federal Register / Vol. 88, No. 186 / Wednesday, September 27, 2023 / Proposed Rules 66319 

parts. The unsafe condition, if not addressed, 

could result in failure of one or more engines, 

loss of thrust control, and loss of the 

airplane. 

(f) Compliance 

Comply with this AD within the 

compliance times specified, unless already 

done. 

(g) Required Actions 

Except as specified in paragraph (h) of this 

AD: Perform all required actions within the 

compliance times specified in, and in 

accordance with, European Union Aviation 

Safety Agency (EASA) AD 2023–0115, dated 

June 7, 2023 (EASA AD 2023–0115). 

(h) Exceptions to EASA AD 2023–0115 

(1) Where EASA AD 2023–0115 defines the 

AMP as the approved Aircraft Maintenance 

Programme containing the tasks on the basis 

of which the scheduled maintenance is 

conducted to ensure the continuing 

airworthiness of each operated engine, this 

AD defines the AMP as the aircraft 

maintenance program containing the tasks on 

the basis of which the scheduled 

maintenance is conducted to ensure the 

continuing airworthiness of each operated 

airplane. 

(2) Where EASA AD 2023–0115 refers to its 

effective date, this AD requires using the 

effective date of this AD. 

(3) This AD does not require compliance 

with paragraphs (1), (2), (4), and (5) of EASA 

AD 2023–0115. 

(4) Where paragraph (3) of EASA AD 2023– 

0115 specifies revising the approved AMP 

within 12 months after the effective date of 

EASA AD 2023–0115, this AD requires 

revising the airworthiness limitations section 

of the existing approved engine maintenance 

or inspection program, as applicable, within 

90 days after the effective date of this AD. 

(5) This AD does not adopt the Remarks 

paragraph of EASA AD 2023–0115. 

(i) Provisions for Alternative Actions and 

Intervals 

After performing the actions required by 

paragraph (g) of this AD, no alternative 

actions and associated thresholds and 

intervals, including life limits, are allowed 

unless they are approved as specified in the 

provisions of the ‘‘Ref. Publications’’ section 

of EASA AD 2023–0115. 

(j) Alternative Methods of Compliance 

(AMOCs) 

(1) The Manager, AIR–520, Continued 

Operational Safety Branch, FAA, has the 

authority to approve AMOCs for this AD, if 

requested using the procedures found in 14 

CFR 39.19. In accordance with 14 CFR 39.19, 

send your request to your principal inspector 

or local Flight Standards District Office, as 

appropriate. If sending information directly 

to the manager of the branch, send it to the 

attention of the person identified in 

paragraph (k) of this AD and email to: ANEAD-AMOC@faa.gov. 

(2) Before using any approved AMOC, 

notify your appropriate principal inspector, 

or lacking a principal inspector, the manager 

of the local flight standards district office/ 

certificate holding district office. 

(k) Additional Information 

For more information about this AD, 

contact Sungmo Cho, Aviation Safety 

Engineer, FAA, 2200 South 216th Street, Des 

Moines, WA 98198; phone: (781) 238–7241; 

email: sungmo.d.cho@faa.gov. 

(l) Material Incorporated by Reference 

(1) The Director of the Federal Register 

approved the incorporation by reference of 

the service information listed in this 

paragraph under 5 U.S.C. 552(a) and 1 CFR 

part 51. 

(2) You must use this service information 

as applicable to do the actions required by 

this AD, unless the AD specifies otherwise. 

(i) European Union Aviation Safety Agency 

(EASA) AD 2023–0115, dated June 7, 2023. 

(ii) [Reserved] 

(3) For EASA AD 2023–0115, contact 

EASA, Konrad-Adenauer-Ufer 3, 50668 

Cologne, Germany; phone: +49 221 8999 000; 

email: ADs@easa.europa.eu; website: 

easa.europa.eu. You may find this EASA AD 

on the EASA website at ad.easa.europa.eu. 

(4) You may view this service information 

at FAA, Airworthiness Products Section, 

Operational Safety Branch, 1200 District 

Avenue, Burlington, MA 01803. For 

information on the availability of this 

material at the FAA, call (817) 222–5110. 

(5) You may view this service information 

that is incorporated by reference at the 

National Archives and Records 

Administration (NARA). For information on 

the availability of this material at NARA, 

email: fr.inspection@nara.gov, or go to: 

www.archives.gov/federal-register/cfr/ibrlocations.html. 

Issued on September 22, 2023. 

Victor Wicklund, 

Deputy Director, Compliance & Airworthiness 

Division, Aircraft Certification Service. 

[FR Doc. 2023–21090 Filed 9–25–23; 4:15 pm] 

BILLING CODE 4910–13–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 158 

[Docket No.: FAA–2022–1315; Notice No. 

23–14] 

RIN 2120–AL86 

Update and Clarification of the 

Passenger Facility Charge Regulations 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Notice of proposed rulemaking 

(NPRM). 

SUMMARY: The FAA proposes to amend 

its Passenger Facility Charge regulations 

to implement changes to an existing 

pilot program that resides within the 

Passenger Facility Charge program. This 

Congressionally mandated pilot 

program simplifies the process for 

public agencies controlling commercial 

service airports to obtain FAA authority 

to impose and use Passenger Facility 

Charges to fund airport development 

projects. The FAA also proposes to 

reaffirm existing program requirements 

and update or remove obsolete 

references within the Passenger Facility 

Charge regulations. Further, this 

proposed action removes certain 

Passenger Facility Charge program 

requirements eliminated in the 2018 

FAA reauthorization legislation. 

DATES: Send comments on or before 

November 27, 2023. 

ADDRESSES: Send comments identified 

by docket number FAA–2022–1315 

using any of the following methods: 

• Federal eRulemaking Portal: Go to 

www.regulations.gov and follow the 

online instructions for sending your 

comments electronically. 

• Mail: Send comments to Docket 

Operations, M–30; U.S. Department of 

Transportation (DOT), 1200 New Jersey 

Avenue SE, Room W12–140, West 

Building Ground Floor, Washington, DC 

20590–0001. 

• Hand Delivery or Courier: Take 

comments to Docket Operations in 

Room W12–140 of the West Building 

Ground Floor at 1200 New Jersey 

Avenue SE, Washington, DC, between 9 

a.m. and 5 p.m., Monday through 

Friday, except Federal holidays. 

• Fax: Fax comments to Docket 

Operations at 202–493–2251. 

Privacy: In accordance with 5 U.S.C. 

553(c), DOT solicits comments from the 

public to better inform its rulemaking 

process. DOT posts these comments, 

without edit, including any personal 

information the commenter provides, to 

www.regulations.gov, as described in 

the system of records notice (DOT/ALL– 

14 FDMS), which can be reviewed at 

www.dot.gov/privacy. 

Docket: Background documents or 

comments received may be read at 

www.regulations.gov at any time. 

Follow the online instructions for 

accessing the docket or go to the Docket 

Operations in Room W12–140 of the 

West Building Ground Floor at 1200 

New Jersey Avenue SE, Washington, 

DC, between 9 a.m. and 5 p.m., Monday 

through Friday, except Federal holidays. 

FOR FURTHER INFORMATION CONTACT: For 

technical questions concerning this 

action, contact Jane Johnson, Office of 

Airports, Airports Policy Branch, APP– 

510, Federal Aviation Administration, 

800 Independence Avenue SW, Room 

619, Washington, DC 20591; telephone 

(202) 267–5878; email jane.johnson@

faa.gov. 

SUPPLEMENTARY INFORMATION: 


ddrumheller on DSK120RN23PROD with PROPOSALS1
66320 Federal Register / Vol. 88, No. 186 / Wednesday, September 27, 2023 / Proposed Rules 

1Public Law 115–254, October 5, 2018. 

2OIG Report No. AV2019015 at 3. 

3See PFC Update 71–19, ‘‘Oversight of Public 

Agency Passenger Facility Charge (PFC) Program,’’ 

issued April 1, 2019, on the FAA internet website. 

4 56 FR 24254 (May 29, 1991). 

5 65 FR 34536 (May 30, 2000). 

6 70 FR 14927 (March 23, 2005). 

Table of Contents 

I. Executive Summary 

II. Overview of the Proposal 

III. Authority for this Rulemaking 

IV. History of the PFC Program 

V. Discussion of the Proposal 

A. 2018 Reauthorization Act 

1. Changes to Project Eligibility for PFC 

Levels Above $3 

2. Changes to Applications and Notices of 

Intent 

B. PFC Program Oversight 

1. Reporting, Recordkeeping and Audit 

Requirements 

2. Federal Oversight, Informal Resolution, 

and Termination 

C. Miscellaneous Amendments 

1. Changes to Subpart A 

2. Changes to Subpart B 

3. Changes to Subpart C 

4. Changes to Subpart D 

5. Changes to Subpart E 

6. Changes to Subpart F 

7. Changes to Appendix A 

8. Section Cross-Reference Table 

VI. Regulatory Notices and Analyses 

A. Regulatory Evaluation 

1. Need for the Regulation 

2. Baseline for the Analysis 

3. Benefits 

4. Costs 

5. Regulatory Alternatives 

B. Regulatory Flexibility Determination 

C. International Trade Impact Assessment 

D. Unfunded Mandates Assessment 

E. Paperwork Reduction Act 

F. International Compatibility 

G. Environmental Analysis 

VII. Executive Order Determinations 

A. Executive Order 13132, Federalism 

B. Executive Order 13175, Consultation 

and Coordination With Indian Tribal 

Government 

C. Executive Order 13211, Regulations 

That Significantly Affect Energy Supply, 

Distribution, or Use 

D. Executive Order 13609, International 

Cooperation 

VIII. Additional Information 

A. Comments Invited 

B. Availability of Rulemaking Documents 

List of Abbreviations and Acronyms 

Frequently Used in This Document 

AIP—Airport Improvement Program 

ALP—Airport Layout Plan 

CBI—Confidential Business Information 

CFR—Code of Federal Regulations 

DOT—U.S. Department of Transportation 

FAA—Federal Aviation Administration 

FOIA—Freedom of Information Act 

ICAO—International Civil Aviation 

Organization 

IRFA—Initial Regulatory Flexibility Analysis 

NEPA—National Environmental Policy Act 

NPIAS—National Plan of Integrated Airport 

Systems 

NPRM—Notice of Proposed Rulemaking 

OIG—Office of Inspector General 

OMB—Office of Management and Budget 

PFC—Passenger Facility Charge 

RFA—Regulatory Flexibility Act 

RIA—Regulatory Impact Analysis 

SBA—Small Business Administration 

U.S.C.—United States Code 

I. Executive Summary 

The FAA proposes to amend its PFC 

regulations to implement changes to a 

Congressionally mandated pilot 

program that simplifies the process for 

public agencies controlling commercial 

service airports to obtain FAA authority 

to impose and use PFCs to fund airport 

development projects. The FAA also 

proposes to reaffirm existing PFC 

program requirements and update or 

remove obsolete references within the 

PFC regulations. Further, this proposed 

action removes certain PFC program 

requirements eliminated in the 2018 

FAA reauthorization legislation. 

II. Overview of the Proposal 

The FAA Reauthorization Act of 2018 

(2018 Reauthorization Act),1 codified at 

49 U.S.C. 40117, mandated several 

changes to the Passenger Facility Charge 

(PFC) program. The 2018 

Reauthorization Act removed previously 

existing PFC program requirements and 

mandated changes for other PFC 

program requirements. This rulemaking 

action proposes to amend the PFC 

regulations in part 158 to implement the 

mandated changes. 

The FAA also proposes to amend the 

PFC regulations to improve PFC 

program oversight. On December 18, 

2018, the U.S. Department of 

Transportation, Office of Inspector 

General (OIG) issued Report No. 

AV2019015, ‘‘Most Public Agencies 

Comply with Passenger Facility Charge 

Program Requirements, But FAA Can 

Improve the Use of Its Oversight Tools.’’ 

In that report, the OIG made several 

recommendations to improve the FAA’s 

oversight and administration of the PFC 

program.2 These recommendations 

pertained primarily to PFC reporting, 

recordkeeping, and audit procedures. 

Through this rulemaking, and as 

detailed in sections V.B.1. and V.B.2, 

the FAA is proposing to formalize in 

regulations policies that the FAA 

implemented in May 2019, in response 

to the OIG’s recommendations.3

Further, the FAA is proposing several 

miscellaneous amendments to the PFC 

regulations, including but not limited 

to: replacing obsolete references, 

correcting grammar or rewording 

language for clarity, and re-organizing 

and re-numbering sections to facilitate 

other amendments proposed in this 

rulemaking action. See section V.C.10. 

in this preamble for a cross-reference 

table listing CFR units that the FAA 

proposes to rename, re-number, or both. 

III. Authority for This Rulemaking 

The FAA’s authority to issue rules 

regarding aviation safety is found in 

Title 49 of the United States Code 

(U.S.C.). Subtitle I, section 106 describes 

the authority of the FAA Administrator. 

Subtitle VII, Aviation Programs, 

describes in more detail the scope of the 

agency’s authority. This rulemaking is 

promulgated under the authority 

described in subtitle VII, part A, subpart 

I, section 40117. Under that section, the 

FAA is charged with prescribing 

regulations to impose a passenger 

facility fee to finance eligible airportrelated projects. 

This rulemaking is also promulgated 

pursuant to 49 U.S.C. 106(g), 40116, 

47106, 47111, 47114–47116, 47524, and 

47526. 

IV. History of the PFC Program 

The PFC program was established by 

the Aviation Safety and Capacity 

Expansion Act of 1990 (Pub. L. 101–508; 

enacted November 5, 1990) which 

authorized the Secretary of 

Transportation (Secretary) to approve 

local imposition of PFCs of $1, $2, or $3 

per enplaned passenger and to use PFC 

revenue for approved projects. That Act 

also required the Secretary to issue 

regulations necessary to implement this 

authority. The Act directed the 

Secretary to develop an application 

procedure, establish terms and 

conditions for granting PFC authority, 

set up a system for collecting, handling, 

and remitting PFC revenue to the 

appropriate public agency, and establish 

recordkeeping and audit requirements 

and procedures for termination. On May 

22, 1991, the FAA issued a final rule 

adopting new regulations to establish 

the PFC program in part 158.4

Pursuant to the Wendell H. Ford 

Aviation Investment and Reform Act for 

the 21st Century (AIR 21), the FAA 

issued a final rule amending part 158 on 

May 23, 2000.5 That action amended the 

PFC regulations to incorporate 

administrative and statutory changes in 

the procedures to establish PFCs, 

including increasing the PFC level that 

a public agency may charge from $1, $2, 

or $3 to $4 or $4.50. 

On January 7, 2005, the FAA issued 

a final rule further amending part 158.6

In that rulemaking action, the FAA 

created a new pilot program, as 

statutorily mandated by Vision 100— 

Century of Aviation Reauthorization 


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Federal Register / Vol. 88, No. 186 / Wednesday, September 27, 2023 / Proposed Rules 66321 

7 Vision 100, 49 U.S.C. 40117(l) (December 12, 

2003). 

8Non-hub airport means a commercial service 

airport that has less than 0.05 percent of the 

passenger boardings. 49 U.S.C. 47102(14). 

9Public Law 110–253, June 30, 2008. 

10Although § 158.30 expired on May 9, 2008, the 

text of the regulation continues to be printed in the 

Code of Federal Regulations because of the 

corresponding removal of the expiration date in the 

2012 Act. This rulemaking action would remove 

that obsolete language. 

11Small hub airport means a commercial service 

airport that has at least 0.05 percent but less than 

0.25 percent of the passenger boardings. 49 U.S.C. 

47102(25). 

12Medium hub airport means a commercial 

service airport that has at least 0.25 percent but less 

than 1.0 percent of the passenger boardings. 49 

U.S.C. 47102(13). 

13Large hub airport means a commercial service 

airport that has at least 1.0 percent of the passenger 

boardings. 49 U.S.C. 47102(11). 

14Airside needs include runways, taxiways, 

aprons, and aircraft gates. 

Act 7 (Vision 100), to test alternative 

procedures to authorize public agencies 

to impose PFCs and use PFC revenue for 

eligible projects at non-hub airports. 

Specifically, the FAA added current 

§ 158.30 to prescribe the procedures a 

public agency controlling a non-hub 8

airport must follow when notifying the 

FAA of its intent to impose a PFC and 

to use PFC revenue on a project. That 

section also set forth criteria and 

standards for FAA review and 

acknowledgment of any notice of intent 

filed under the pilot program, and FAA 

objection to a proposed project. Since 

Vision 100 required the pilot program to 

be in effect for three years from the date 

the final rule was enacted, the final rule 

included a sunset provision of May 9, 

2008. 

The Federal Aviation Extension Act of 

2008 9 authorized the non-hub pilot 

program to continue through September 

30, 2008. However, when § 158.30 

expired on May 9, 2008, there were no 

effective regulations in place to guide 

public agencies and the FAA regarding 

the use of these alternative procedures. 

Therefore, the FAA published a notice 

in the Federal Register informing public 

agencies of the program’s continuing 

statutory authority, and the FAA 

periodically issued internal agency 

guidance in the form of PFC updates to 

inform agency personnel of how to 

administer the non-hub pilot program. 

The FAA Modernization and Reform 

Act of 2012 subsequently eliminated the 

expiration date from 49 U.S.C. 40117(l) 

and the FAA continued implementing 

the non-hub pilot program in 

accordance with the statute in the 

absence of effective regulations.10 The 

agency continued to use the same forms 

and procedures that were developed 

before the sunset of § 158.30, thereby 

allowing for seamless program 

continuation. 

V. Discussion of the Proposal 

The FAA is proposing to amend the 

PFC program regulations. These 

proposed amendments are grouped into 

the following three categories based on 

the rationale for the proposed change: 

2018 Reauthorization Act, PFC Program 

Oversight, and Miscellaneous 

Amendments. 

A. 2018 Reauthorization Act 

This rulemaking action proposes the 

following changes to the PFC program 

as mandated by the 2018 

Reauthorization Act: (1) changes related 

to project eligibility for PFC levels above 

$3, and (2) changes related to 

applications and notices of intent for 

small- 11, medium- 12, and large-hub 13

airports. 

1. Changes to Project Eligibility for PFC 

Levels Above $3 

(a) Background 

At the inception of the PFC program, 

public agencies received authority to 

impose a PFC of $1, $2, or $3. The 

project eligibility requirements are 

contained in current § 158.15, ‘‘Project 

eligibility at PFC levels of $1, $2 or $3.’’ 

AIR 21 modified the PFC program by 

allowing a public agency to apply to the 

FAA to increase the PFC level that it 

may charge to $4 or $4.50 in certain 

instances. Project Eligibility 

requirements at PFC Levels of $4 or 

$4.50 are found in current § 158.17. 

Section 158.17 (a)(1) requires these 

projects to also meet the eligibility 

requirements of § 158.15. 

AIR 21 limited projects funded at a $4 

or $4.50 PFC level to those that could 

not be paid for from funds reasonably 

expected to be available under the 

Airport Improvement Program (AIP). 

The requirement for this AIP funds 

reasonability determination is found in 

current § 158.17(a)(2). 

AIR 21 also conditioned the funding 

of surface transportation or terminal 

projects at the $4 or $4.50 level on a 

finding that the public agency had made 

adequate provision for financing the 

airside needs 14 of the airport. The 

requirement for this airside needs 

determination is found in current 

§ 158.17(a)(3). 

Further, AIR 21 established additional 

eligibility requirements for projects at 

medium- and large-hub airports. A 

project at a medium- or large-hub 

airport was eligible for PFC funding at 

$4 or $4.50 only if the project would 

make a significant contribution to: 

improving air carrier safety and 

security; increasing competition among 

air carriers; reducing current or 

anticipated congestion; or reducing the 

impact of aviation noise on people 

living near the airport. These 

requirements are contained in current 

§ 158.17(b). 

(b) Removal of AIP Funds Reasonability 

Determination 

The 2018 Reauthorization Act 

amended 49 U.S.C. 40117(b)(4) by 

removing the AIP funds reasonability 

determination requirement found in 

current § 158.17(a)(2). With this change 

in legislation, the FAA no longer uses 

this determination to set the collection 

level for which the project is approved. 

On May 9, 2019, the FAA issued PFC 

Update 72–19, ‘‘Changes to the 

Passenger Facility Charge Levels Above 

$3,’’ directing FAA personnel to cease 

applying this requirement while 

reviewing PFC applications. In this 

rulemaking action, the FAA proposes to 

formally remove this requirement from 

the PFC regulations. 

(c) Removal of Significant Contribution 

Determination 

The 2018 Reauthorization Act also 

eliminated the significant contribution 

requirement found in current 

§ 158.17(b). As a result, the FAA no 

longer uses it to determine the 

collection level for which a project is 

approved and no longer requires public 

agencies to submit information related 

to significant contribution. PFC Update 

72–19 directs FAA personnel to no 

longer apply this requirement in 

reviewing PFC applications and the 

FAA proposes to remove the 

requirement from the PFC regulations. 

Moving forward, the FAA would rely on 

airside needs as the determining factor. 

(d) Retention of Airside Needs 

Determination 

The 2018 Reauthorization Act retains 

the airside needs determination under 

49 U.S.C. 40117(d)(4) found in current 

§ 158.17(a)(3). Since the airside needs 

determination is the only requirement 

remaining within § 158.17 after making 

the 2018 Reauthorization Act changes, 

aside from the requirement to comply 

with § 158.15, the FAA proposes to 

combine these two sections. 

Specifically, the FAA proposes to move 

the airside needs requirement in 

§ 158.17(a)(3) to § 158.15 by adding a 

new proposed paragraph (d) to current 

§ 158.15 and restating the airside needs 

requirement, which continues to remain 

effective. The FAA also proposes to 

rename § 158.15 as ‘‘Project 


ddrumheller on DSK120RN23PROD with PROPOSALS1
66322 Federal Register / Vol. 88, No. 186 / Wednesday, September 27, 2023 / Proposed Rules 

15Prior to AIR 21 and the subsequent final rule 

allowing for the $4 or $4.50 PFC level, all project 

eligibility requirements were listed in § 158.15, 

which was titled Project eligibility. In this 

rulemaking, the FAA proposes to return to that 

former structure of the PFC regulation for project 

eligibility. 

eligibility’’ 15 and delete the current text 

of § 158.17 in its entirety. Consolidating 

the project eligibility requirements into 

one section and changing the section 

title will improve accessibility and 

comprehension of the requirements. 

The FAA also proposes administrative 

amendments to replace references to 

former § 158.17(a)(3) throughout part 

158 with references to proposed 

§ 158.15(d). These administrative 

amendments are discussed further 

under section V.C. below. 

2. Changes to Applications and Notices 

of Intent 

(a) Background 

The statutory provisions initially 

authorizing the PFC program required 

public agencies to submit an application 

to the FAA to obtain authority to impose 

PFCs and use PFC revenue. However, 

Vision 100 established the notice of 

intent process, mandating that the FAA 

create a pilot program to test alternative 

procedures for authorizing eligible 

agencies for non-hub airports to impose 

PFCs and use PFC revenue. 

Under the non-hub pilot program, 

only public agencies controlling nonhub airports could use alternative 

procedures to impose PFCs and use PFC 

revenue on eligible projects under 49 

U.S.C. 40117(l). In lieu of submitting an 

application in accordance with 49 

U.S.C. 40117(c), as prescribed in current 

§ 158.25, public agencies controlling 

non-hub airports simply could submit a 

notice of intent to impose a PFC and use 

PFC revenue. Under these alternative 

procedures, within 30 days of receipt of 

the public agency’s notice, the FAA 

either objected to the public agency’s 

proposed project(s) or acknowledged the 

public agency’s notice of intent. 

The 2018 Reauthorization Act 

amended 49 U.S.C. 40117(l) by 

removing all references to non-hub 

airports. This legislative change 

effectively directed the FAA to extend 

the pilot program to small-, medium-, 

and large-hub airports, permitting these 

airports to also obtain authority to 

impose PFCs and use PFC revenue using 

alternative notice of intent procedures. 

(b) PFC Update 73–20 and Partial 

Implementation of Program Changes 

Immediately following enactment of 

the 2018 Reauthorization Act, the FAA 

considered several options for 

implementing the PFC program changes. 

Since the FAA had been successfully 

implementing notice of intent 

procedures for non-hub airports for 

several years, such procedures seemed 

most appropriate for PFC authorizations 

for small-, medium-, and large-hub 

airports. However, rulemaking to amend 

part 158 would have been required to 

change the application requirements for 

public agencies. 

Recognizing the immediate need for 

expeditious processing of PFC 

applications, the FAA internally 

implemented program changes to the 

maximum extent possible. On January 

22, 2020, the FAA issued PFC Update 

73–20, ‘‘Streamlined Procedures for 

Passenger Facility Charge (PFC) 

Authorizations at Small-, Medium-, and 

Large-Hub Airports.’’ This interim 

internal guidance partially implemented 

the program change by streamlining the 

FAA’s internal review of PFC projects 

meeting specific criteria for small-, 

medium-, and large-hub airports. This 

interim internal guidance did not 

change the PFC application procedures 

for public agencies. All applications 

were still required to meet the statutory 

and regulatory requirements of 49 

U.S.C. 40117 and part 158. 

PFC Update 73–20 indicated that all 

PFC applications received by the FAA 

from small-, medium-, or large-hub 

airports are to be processed using the 

streamlined procedures identified in the 

PFC update unless such applications are 

excluded in accordance with applicable 

PFC guidance. Therefore, all PFC 

applications not excluded under PFC 

Update 73–20 are to be treated as a 

notice of intent with FAA review and 

acknowledgment or objection within 30 

days. 

(c) Proposed Amendments for Full 

Implementation of Program Changes 

The FAA proposes to amend part 158 

to allow for the full implementation of 

program changes originating from the 

2018 Reauthorization Act. The FAA’s 

proposed regulations largely mirror the 

provisions of PFC Update 73–20 to 

implement the notice of intent pilot 

program. 

The FAA proposes to revise § 158.30 

to reflect the 2018 Reauthorization Act 

program changes and remove the sincerescinded section expiration date, 

which will provide consistency with 

current practice and law. Current 

§ 158.30 prescribes regulations for 

notice of intent PFC authorizations for 

non-hub airports; however, § 158.30(h) 

indicates that § 158.30 expired on May 

9, 2008. The FAA also intends to move 

some of the provisions found in § 158.30 

to other sections within part 158 to 

improve readability of the notice of 

intent requirements. The FAA is 

proposing this re-organization of 

§ 158.30 to allow for the inclusion of 

notice of intent provisions stemming 

from PFC Update 73–20 and the FAA’s 

partial implementation of the program 

changes. These proposed changes are 

discussed in the following paragraphs. 

First, the FAA proposes to amend 

current § 158.30 by renaming the section 

heading ‘‘Notices of intent.’’ While 

§ 158.30(a) through (c) would remain 

largely the same, the FAA is proposing 

to make several changes. For example, 

the FAA proposes revising current 

paragraph (a) by removing language that 

limits the applicability of § 158.30 to 

non-hub airports. The FAA is also 

proposing minor changes to the project 

information requirements of current 

§ 158.30(b). That paragraph requires 

public agencies to submit grant-related 

information when a PFC project is also 

funded by an AIP grant. The FAA 

proposes to replace references to AIP 

grants with ‘‘FAA awarded airport 

grant’’ so as to include information 

about other grants also funding the 

project, such as those authorized under 

the Bipartisan Infrastructure Law (BIL). 

Further, the FAA is adding a new 

paragraph, proposed § 158.30(b)(8), 

requiring public agencies to submit 

detailed cost information for non-AIP 

funded projects that exceed $10 million. 

Second, the FAA proposes to move 

the text of current § 158.31, ‘‘Duration of 

authority to impose a PFC after project 

implementation’’ to an amended 

§ 158.33, and move the text of current 

§ 158.30(d), which includes the notice 

of intent review requirements, to an 

amended and proposed § 158.31, 

‘‘Review of notices of intent.’’ In turn, 

the FAA proposes to move the current 

text of § 158.33, ‘‘Duration of authority 

to impose a PFC before project 

implementation,’’ to a newly added 

proposed § 158.34. 

Proposed § 158.31 describes the 

FAA’s rules for reviewing notices of 

intent and outlines two stages of FAA 

review. The first stage of review, which 

is prescribed in proposed § 158.31(a), 

addresses the types of applications and 

projects ineligible for notice of intent 

consideration. The second stage of 

review, which is prescribed in 

§ 158.31(b), addresses the FAA’s 

determinations on projects eligible for 

notice of intent consideration. 

Under proposed § 158.31(a), the FAA 

will review notices of intent to identify 

projects ineligible for consideration 

under this streamlined process. The 

FAA intends to notify public agencies in 

writing within 30 days if the FAA 

determines that a project is ineligible for 

the notice of intent procedure. This 


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notification process, outlined in 

proposed § 158.31(a), was not 

prescribed in PFC Update 73–20. 

The projects ineligible for 

consideration under proposed 

§ 158.31(a)(1) through (a)(8) are 

identical to those ineligible for the 

streamlined procedures under PFC 

Update 73–20. In determining the types 

of projects ineligible for streamlined 

procedures under PFC Update 73–20, 

the FAA considered the agency’s 

internal delegations of authority as 

delineated in PFC Order 5500.1, 

‘‘Passenger Facility Charge,’’ issued 

August 9, 2001. That document 

identifies certain types of PFC projects 

and applications that cannot be 

processed by the FAA’s region and 

district offices because they require a 

higher level of internal FAA review and 

coordination within agency 

headquarters. Applications involving 

significant policy precedent, significant 

legal issues, significant controversy, 

multimodal projects, and significant 

noise, access, or revenue diversion 

issues are not eligible for streamlined 

processing under PFC Update 73–20. 

For reasons discussed in the next few 

paragraphs, the FAA proposes to 

incorporate these provisions within the 

regulations. 

Under proposed § 158.31(a)(1), the 

FAA intends to review notices of intent 

for significant impacts on policy 

precedent. The FAA’s disposition 

regarding a proposed PFC project could 

represent a significant policy precedent 

if the agency’s decision would establish 

or change the FAA’s policy on a project 

or issue. FAA review of such a project 

would typically require more than the 

30 days afforded by the notice of intent 

process because the FAA would need to 

evaluate any potential impacts resulting 

from a change in policy. 

Similarly, under proposed 

§ 158.31(a)(2), the FAA intends to 

review notices of intent for projects with 

significant legal issues, as determined 

by the FAA’s Office of the Chief Counsel 

or Office of Airports. Projects with 

significant legal issues involve matters 

that may result in litigation or may 

include projects where NEPA or 

environmental litigation are present. 

Such projects might also include 

circumstances where a Director within 

the FAA’s Office of Airports has made 

a determination that the public agency 

has been found to be noncompliant in 

14 CFR part 16 proceedings, or the 

public agency is presently a respondent 

in 14 CFR part 16 proceedings. Again, 

such projects need a level of review that 

requires more than the 30 days afforded 

by the notice of intent process. 

PFC projects that are the subject of 

significant controversy are also 

ineligible for streamlined procedures in 

accordance with § 158.31(a)(3). 

Significant controversy is evidenced by 

opposition expressed during a public 

agency’s consultation with air carriers. 

Other indicators of potential significant 

controversy include adverse public 

comments or opposition to the FAA’s 

proposed action from other airport 

authorities, airport users, Federal, State, 

or local governments, elected officials or 

communities. Likewise, multimodal 

projects or projects involving significant 

airport noise, access, or revenue 

diversion issues are also ineligible for 

these alternative procedures in 

accordance with proposed § 158.31(a)(4) 

and (a)(5). Significant airport noise, 

access, or revenue diversion issues 

concern those assessing compliance 

with 49 U.S.C. 47521 et seq. (ANCA) 

and 49 U.S.C. 47111(e) (Action on Grant 

Assurances Concerning Airport 

Revenues). 

The FAA also considered PFC Update 

62–10, ‘‘Passenger Facility Charge 

Delegation of Authority,’’ issued March 

11, 2010, in determining the types of 

projects ineligible for streamlined 

procedures under PFC Update 73–20. 

That document identifies additional 

types of PFC projects and applications 

that cannot be processed by the FAA’s 

regional and district offices. These 

include debt service on otherwise 

ineligible projects or blending of two or 

more PFC decisions to obtain a uniform 

collection level. Such projects and 

applications require specialized review 

because they tend to be unique and 

multifaceted. The next few paragraphs 

discuss the FAA’s intent to retain these 

exclusions as proposed § 158.31(a)(6) 

and (a)(7). 

In proposed § 158.31(a)(6), the FAA 

proposes to exclude applications 

involving debt service from the notice of 

intent streamlined procedures due to 

the complexity of these applications. 

When applying to use PFC revenue for 

certain debt service projects, the FAA 

encourages each airport to thoroughly 

discuss in its application those factors it 

believes most clearly indicate the 

airport’s financial need. The FAA will 

consider the airport’s plans to return to 

financial stability in its deliberations on 

the application. If incurring new debt, 

for any purpose, will help the airport 

return to financial stability as soon as 

possible, the public agency should 

discuss this factor in the application. 

The FAA also expects an airport 

attempting to demonstrate that it faces 

a financial crisis to discuss factors likely 

to affect its ability to make required 

payments in the future. Notice of intent 

procedures would not be appropriate in 

such instances because the FAA’s 

evaluation process is too extensive to be 

completed within 30 days. A longer 

time frame for review is necessary 

because this gives the public agency 

time to respond to any requests for 

information from the FAA should the 

application not contain all of the 

necessary documentation. For example, 

if during the course of review, the FAA 

finds that the public agency needs to 

provide a plan to return to financial 

stability, 30 days is insufficient to allow 

for the public agency to develop and 

submit the plan in order to move 

forward with the application. Since 

there is not sufficient time allotted for 

adequate review under the notice of 

intent process, the FAA proposes to 

exclude these types of projects and 

applications. 

The FAA proposes to exclude 

applications for the blending of two or 

more PFC decisions to obtain a uniform 

collection level under proposed 

§ 158.31(a)(7) for reasons similar to debt 

service on otherwise ineligible projects. 

Prior to the 2018 Reauthorization Act, 

public agencies sought to blend PFC 

applications to enable PFC collections at 

the higher $4 or $4.50 amount when 

significant contribution was a 

determining factor. Since the significant 

contribution determination has been 

eliminated and public agencies no 

longer need to demonstrate significant 

contribution to collect PFCs at the $4 or 

$4.50 level, the FAA does not anticipate 

receiving many public agency 

applications for blending. However, in 

the rare event that a public agency does 

seek to blend applications, the FAA has 

found that such action requires a 

specialized review and analysis that is 

likely to exceed the 30 days afforded by 

the notice of intent process. Therefore, 

the FAA excluded blending under PFC 

Update 73–20 and proposes that 

application blending should remain 

ineligible for the streamlined notice of 

intent procedures. 

Finally, PFC Update 73–20 describes 

one more type of PFC project ineligible 

for streamlined processing. Terminal 

building projects in excess of $25 

million, except stand-alone passenger 

boarding bridges, are also ineligible for 

streamlined processing under PFC 

Update 73–20. The FAA proposes to 

retain this exclusion as proposed 

§ 158.31(a)(8) for reasons discussed in 

the following paragraphs. 

The initial justification for non-hub 

airport notice of intent procedures was 

to achieve PFC program efficiency by 

eliminating duplicative efforts. In 2002, 

the FAA examined the PFC program to 

identify ways to remove unnecessary, 


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16 Village of Bensenville, et al. v. Federal Aviation 

Administration, 376 F.3d 1114, 1122 (D.C. Cir. 

2004). 

duplicative, and time-consuming steps. 

The FAA found that while non-hub 

airports accounted for about 60 percent 

of the PFC applications processed over 

the prior five years, they only produced 

roughly two percent of the total annual 

PFC revenue. Further, the FAA found 

that non-hub airports often apply to use 

PFC revenue either as their matching 

share for an AIP grant or as a 

supplement to AIP funding. In such 

cases involving AIP funds, the FAA has 

already reviewed the project under the 

AIP grant procedures, thereby 

producing a duplication of efforts that 

created inefficiencies for both non-hub 

airports and the FAA. Thus, overall, 

enactment of the non-hub pilot program 

eliminated duplication, improved 

program efficiency, and supported 

expedited review of PFC projects for 

non-hub airports. 

Under the non-hub pilot program for 

notices of intent, when PFC projects did 

not include AIP funds, the FAA 

required public agencies to submit 

project information sufficient for the 

FAA to review and consider whether 

the project is eligible for PFCs, meets a 

PFC objective, and is justified before 

acknowledging or objecting to a 

proposed PFC project. While terminal 

projects for non-hub airports typically 

fell into this category, the scale of such 

projects and the level of complexity 

tend to be minimal due to the nature of 

non-hub operations, allowing for review 

within the 30-day timeframe. However, 

in partially implementing program 

changes under PFC Update 73–20, the 

FAA concluded that terminal building 

projects for small-, medium-, and largehub airports, on the other hand, may 

need more than the 30 days afforded 

under the notice of intent process. 

Endeavoring to retain PFC program 

efficiencies gained through the notice of 

intent process while still allowing for 

adequate review and evaluation of 

terminal projects, the FAA implemented 

a $25 million threshold for terminal 

projects under PFC Update 73–20 

regardless of airport hub size. Since 

inception of the PFC program, the vast 

majority of non-hub terminal PFC 

projects were less than $25 million. The 

$25 million threshold allows nearly all 

non-hub airport terminal projects to 

continue to obtain PFC authority 

through the notice of intent process as 

they have done historically and allows 

a vast majority of terminal projects for 

small-, medium-, and large-hub airports 

to also use this process. 

Terminal projects at or over $25 

million, in most cases, require a more 

extensive review on the part of the FAA 

to ensure the project has been fully 

assessed. Concluding from years of 

experience with terminal projects, the 

FAA found that projects above $25 

million tend to involve more systems 

and components than smaller projects 

and have a greater potential to include 

spaces and equipment ineligible for 

funding under the PFC program. 

Therefore, these projects require a more 

comprehensive review, such as 

comparison against comparable projects, 

which would take more than the 30-day 

notice of intent period. The FAA does 

not propose changes to this limitation 

found in proposed § 158.31. The 

numerous components associated with 

projects at or over $25 million generally 

require a more extensive review on the 

part of the FAA to ensure the project has 

been fully assessed. The application 

evaluation process may include 

determining if the submission includes 

sufficient documentation to demonstrate 

adequate justification for the project; 

determining whether the project is 

eligible for PFC funds; assessing the 

project objective and justification 

provided by the public agency; 

reviewing submission of detailed 

financial information; evaluating 

modifications to standards; assessing 

impacts to airport geometry; and 

determining whether it is necessary to 

engage in interagency coordination. 

There may be a need to coordinate with 

border control agencies or other Federal 

agencies on the impact of this 

application and project with respect to 

these agencies’ equities. Other review 

factors can include amount and 

duration of the PFC; compliance with 

airport revenue use requirements; 

alternative uses; air carrier and public 

comments; compliance with the Airport 

Noise and Capacity Act of 1990 (ACNA); 

airport layout plan (ALP), airspace, and 

National Environmental Policy Act 

(NEPA) requirements; the schedule for 

project implementation; and financial 

viability of the project. Since many of 

these determinations and factors are 

present when a project reaches the $25 

million threshold, such projects cannot 

be streamlined. 

(d) PFC Update 50–06 and 2018 

Reauthorization Pilot Program 

Implementation 

The FAA proposes a minor revision to 

the information that public agencies 

must submit to the FAA with a notice 

of intent when seeking authority to 

impose a PFC. Specifically, the FAA 

proposes to add §§ 158.25(b)(8) and 

158.30(b)(3)(iv) directing public 

agencies to submit detailed cost 

information, as required by the 

Administrator. The FAA’s policy on 

requesting this information from public 

agencies is currently outlined in PFC 

Update 50–06, ‘‘Detailed basis of cost 

information, new project certifications, 

and changes to the Final Agency 

Decision,’’ issued September 8, 2006. 

The FAA issued PFC Update 50–06 in 

response to Village of Bensenville, et al. 

v. Federal Aviation Administration, a 

U.S. Court of Appeals, District of 

Columbia Circuit decision, that found 

the FAA had not adequately 

demonstrated that it had reviewed the 

cost estimates for an Environmental 

Impact Statement (EIS) project and that 

the FAA’s records did not support its 

findings in its decision.16 With the 

issuance of PFC Update 50–06, the FAA 

began requesting the submission of 

detailed cost information with PFC 

applications under the authority of 

current § 158.25(b)(18), which directs 

public agencies to submit ‘‘[s]uch 

additional information as the 

Administrator may require.’’ 

Attachment B to the PFC Application 

Form 5500–1 explicitly requires public 

agencies to submit cost details sufficient 

to identify eligible and ineligible costs 

if the project amount is over $10 

million, as a result of the decision by 

the court. 

The detailed cost submission 

requirement for small-, medium-, and 

large-hub airports has not changed with 

the availability of the notice of intent 

process, but this requirement will now 

apply to non-hub airports. Prior to the 

2018 Reauthorization Act, non-hub 

airports obtaining PFC authority 

through the notice of intent process 

were not subject to the detailed cost 

submission requirements. In PFC 

Update 50–06, the FAA stated that most 

non-hub pilot program projects have 

either existing or planned AIP funding, 

and these grants involve an FAA review 

of the costs. Also, most non-hub pilot 

program projects request less than $10 

million in PFC funding authority. 

Further, the FAA indicated the 30-day 

pilot program-processing period does 

not provide enough time for the FAA to 

review detailed cost estimates for 

multiple projects. Section 158.30(b)(7) 

(which expired on May 9, 2008—See 

footnote 1) directed public agencies to 

include ‘‘any additional information the 

Administrator may require’’ with a 

notice of intent. The FAA proposes to 

include this language in § 158.30(b)(7). 

Similarly, the FAA does not propose to 

change current policy that non-hub 

airports must provide detailed cost 

information when submitting an 

application under § 158.25 and the 

project amount is over $10 million. 


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Since the 2018 Reauthorization Act 

effectively eliminated any distinction 

between hub and non-hub notice of 

intent submissions, the requirement for 

detailed cost information now extends 

to non-hub airports. The FAA proposes 

to add a new subparagraph 

§ 158.30(b)(3)(iv) to clearly indicate 

within the PFC regulations that 

submission of cost detail information 

may be required as part of a notice of 

intent filing, regardless of hub size. The 

FAA anticipates the impact of this 

provision on public agencies will be 

minimal. Since the FAA proposes to 

restrict the types of projects eligible for 

streamlined procedures, the FAA 

expects that very few projects would 

require this comprehensive review of 

material within the 30-day period. 

Further, public agencies already possess 

detailed cost information for proposed 

projects in most cases. Adding this 

requirement merely directs public 

agencies to submit such information to 

the FAA for consideration along with a 

notice of intent filing. 

B. PFC Program Oversight 

The proposed regulatory changes to 

program oversight stem from PFC 

Update 71–19 and a review of current 

policies. The proposed changes 

formalize the policies contained in PFC 

Update 71–19, improve the informal 

resolution process, and restructure the 

current layout of the oversight 

regulations found in part 158 to improve 

accessibility and program compliance. 

1. Reporting, Recordkeeping and Audit 

Requirements 

On April 1, 2019, the FAA issued PFC 

Update 71–19, Oversight of Public 

Agency Passenger Facility Charge (PFC) 

Program, in response to certain 

recommendations from the OIG, 

contained in Report # AV2019015. In 

that report, the OIG asserted that the 

FAA lacked a process to ensure that 

independent audit reports are timely 

and include required information. The 

OIG recommended that the FAA 

establish specific timeframes for issuing 

audit reports and verify that public 

agencies’ independent audits are 

performed annually. 

Public agencies are required to 

conduct an audit of their PFC accounts 

at least annually in accordance with 

current § 158.67(c). To ensure that these 

audit reports are submitted in a timely 

manner, PFC Update 71–19 directs the 

FAA to request that public agencies 

submit annual PFC audit reports 30 

calendar days after receipt of the 

auditor’s report or 9 months after the 

end of the audit period. The FAA 

proposes to amend § 158.69 to formalize 

this guidance to now require public 

agencies to provide a copy of their 

annual audit to the Administrator 

within 30 calendar days after receipt of 

the audit or 9 months after the end of 

the audit period, whichever is less. The 

FAA also proposes to separate the 

requirements of current § 158.67(c) into 

four sub-paragraphs to separate four 

unique existing requirements. These 

sub-paragraphs have been renumbered 

as § 158.67(c)(1)-(4). 

Further, the FAA is proposing two 

additional subparagraphs, 

§ 158.67(c)(5)-(6) to § 158.67(c). 

Proposed § 158.67(c)(5) requires PFC 

audits to include a schedule of revenues 

and expenditures of the PFC account. 

This schedule should include the 

beginning balance in the PFC account 

on the first day of the fiscal year, PFC 

Collections for each quarter, PFC 

Interest Earned for each quarter, 

disbursements on projects by 

application for each quarter, and the 

PFC account closing balance. Current 

FAA policy concerning the submission 

of a PFC schedule is found in FAA 

Order 5500.1, Passenger Facility Charge, 

August 9, 2001, Paragraph 7–18.b. 

AUDIT, which indicates that the auditor 

must, as a minimum, provide opinions 

as well as a schedule of PFC 

transactions. Currently, PFC schedule 

guidance is included in FAA Order 

5500.1. The FAA proposes to make this 

a requirement in the PFC regulations. 

Proposed § 158.67(c)(6) requires PFC 

audits to be performed on an actual 

basis unless some form of reconciliation 

documentation is provided by the 

auditor. This proposal moves current 

industry practice into a regulatory 

requirement in order to allow for the 

real-time accounting of actual total 

collected towards the total PFC 

collection. This requirement will 

improve transparency and ensure that 

PFC funds are being collected accurately 

and are accounted for properly. 

2. Federal Oversight of Compliance, 

Informal Resolution, and Termination 

The FAA proposes to rename current 

subpart ‘‘E¥Termination’’ as subpart 

‘‘E¥Federal Oversight of Compliance, 

Informal Resolution, and Termination’’ 

and move current § 158.71, which 

prescribes regulations for Federal 

oversight, into subpart E. The FAA 

proposes to consolidate the regulations 

in subparts D and E, which ensure 

public agency compliance with the 

requirements of part 158 and 49 U.S.C. 

40117, into the same subpart. The FAA 

anticipates that consolidating the 

regulations in subparts D and E will 

improve access to public agency 

obligations and therefore improve 

compliance. 

The annual PFC audit provides 

validation of and reconciliation between 

the public agency’s audited financial 

statements and the PFC financial data in 

the FAA’s System of Airports Reporting 

(SOAR) database. The FAA relies on 

SOAR data to evaluate whether the PFC 

collection period is appropriate. Some 

public agencies have inconsistently 

submitted required annual audit reports. 

Inaccurate or absent data impairs the 

FAA’s oversight and ability to fulfill its 

statutory obligations under 49 U.S.C. 

40117(d)(1) and 40117(h). 

In some instances, after receiving a 

public agency’s audit report, the FAA 

may decide to review the imposition 

and use of PFC revenue. In these cases, 

the public agency should provide a 

timely and sufficient response to any 

FAA inquiry. Accordingly, the FAA 

proposes to amend current § 158.71 by 

adding language indicating the 

Administrator may take further action 

including, but not limited to, informal 

resolution, termination, or other action, 

as appropriate. The FAA also proposes 

to re-number that section as § 158.83 

and rename it ‘‘Federal oversight of 

compliance’’ to more clearly reflect the 

provisions. 

The FAA also proposes to amend the 

informal resolution provisions of 

current § 158.83 by removing the 

requirement that the FAA audit, review, 

or both audit and review a public 

agency’s use of PFC revenue or a public 

agency’s collection and remittance of 

PFC revenue under the oversight 

authority of current § 158.71 before 

commencing an informal resolution 

process with a public agency. As 

discussed previously, the OIG found the 

FAA lacks a process to ensure that 

independent audit reports are timely 

and include required information. This 

proposal is part of a larger effort to 

create a compliance-oriented subpart 

with a clear escalation process. A 

compliance-oriented subpart with a 

clear escalation process also would 

enable the FAA to engage in informal 

resolution to address various PFC 

collection and use issues without the 

FAA having to first audit the public 

agency or initiate termination 

procedures. The FAA also proposes to 

re-number this section as § 158.85. 

C. Miscellaneous Amendments 

The FAA is proposing miscellaneous 

amendments to the PFC regulations. A 

discussion of these miscellaneous 

amendments follows. 

The FAA proposes to re-organize and 

re-number several sections within part 

158 to facilitate other amendments 


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17 49 U.S.C. 40117(d)(4) 

proposed in this rulemaking action. In 

instances where revised section 

numbers are referenced elsewhere in the 

PFC regulations, the FAA proposes to 

make corresponding administrative 

amendments to those references within 

the PFC regulations. 

1. Changes to Subpart A 

(a) Section 158.3—Definitions 

The FAA proposes to amend the 

following definitions: 

• Approved project. The FAA 

proposes to replace the reference to 

§ 158.30 with § 158.32. This is a 

technical correction. 

• Bond financing costs. The FAA 

proposes to add language to include the 

cost of financing other indebtedness, 

which is consistent with PFC Order 

5500.1, Appendix 4, August 9, 2001. 

• Charge effective date. The FAA 

proposes to insert the word ‘‘first’’ 

before the word ‘‘date’’ and replace the 

word ‘‘obliged’’ with the word ‘‘start 

collecting.’’ These amendments provide 

further detail on the FAA’s expectation 

for the charge effective date. 

• Charge expiration date. The FAA 

proposes to replace the phrase ‘‘cease to 

collect’’ with the phrase ‘‘stop 

collecting.’’ This is not a substantive 

change. 

• Debt service. The FAA proposes to 

move the word ‘‘items’’ from behind the 

word ‘‘such’’ to before the word ‘‘such.’’ 

This is not a substantive change. 

• Exclusive long-term lease or use 

agreement. The FAA proposes to add 

language to this definition that applies 

to exclusive leases of less than five years 

that have automatic renewal or 

carryover options, or to leases that have 

the effect of granting exclusive use 

rights. This proposed change is not a 

substantive change but has been made 

to align the definition with PFC 

assurances 5 and 6. 

• Implementation of an approved 

project. The FAA proposes to replace 

the word ‘‘nonconstruction’’ with ‘‘nonconstruction.’’ This is not a substantive 

change. 

• Notice of intent (to impose or use 

PFC revenue). The FAA proposes to 

amend the definition by removing the 

limited applicability to non-hub 

airports. This amendment is consistent 

with the 2018 Reauthorization Act. The 

FAA also proposes to replace the 

reference to § 158.30 with § 158.32. This 

amendment harmonizes with the renumbering of certain sections. This is a 

proposed substantive change to account 

for program changes made by the 2018 

Reauthorization Act. 

(b) Section 158.11—Requests for Air 

Carrier, Foreign Air Carrier, or Isolated 

Community Exclusion 

The FAA proposes to shorten the title 

of this section by revising it from 

‘‘Public agency request not to require 

collection of PFCs by a class of air 

carriers or foreign air carriers or for 

service to isolated communities’’ to 

‘‘Requests for air carrier, foreign air 

carrier, or isolated community 

exclusion.’’ 

(c) Section 158.13—Use of PFC Revenue 

Currently, § 158.13 is titled ‘‘Use of 

PFC Revenue’’ and § 158.18 is titled 

‘‘Use of PFC revenue to pay for debt 

service for non-eligible projects.’’ Both 

sections pertain to the use of PFC 

revenue. Current § 158.13(e) provides an 

exception for the use of PFC revenue to 

pay for debt service for non-eligible 

projects and references current § 158.18. 

Rather than making this reference, for 

simplicity, the FAA proposes to move 

the language contained in § 158.18 into 

§ 158.13(e) and delete § 158.18 entirely. 

Additionally, since the last sentence 

of paragraph (f) pertains to auditing, the 

FAA proposes to move that language to 

the auditing requirements for approved 

projects combining PFC revenue and 

Federal grant funds within subpart D. 

Specifically, the FAA proposes to 

incorporate this language into § 158.67. 

(d) Section 158.15—Project Eligibility 

The FAA proposes two amendments 

to this section: (1) change the section 

title to remove dollar amounts, and (2) 

add a new paragraph (d) which contains 

the airside needs test language from 

§ 158.17(a)(3). This second amendment 

is necessary because most of the 

requirements of § 158.17 were removed 

by the 2018 Reauthorization Act and the 

FAA is proposing to delete § 158.17 and 

move any surviving requirements to 

§ 158.15. 

As discussed in section V.A.1. of the 

preamble, the FAA is amending 

§ 158.17(a)(3) to revise the airside needs 

requirement to align with the 2018 

Reauthorization Act. The 2018 

Reauthorization Act retains the airside 

needs requirement of 49 U.S.C. 

40117(d)(4), which provides that in the 

case of an eligible surface transportation 

or terminal project, a PFC project cannot 

be approved at a collection level higher 

than $3 unless the FAA determines that 

the public agency has made adequate 

provision for financing the airside needs 

of the airport.17

After removal of the funds 

reasonability determination and the 

significant contribution requirement, 

the only provisions of current 

§ 158.17(a)(1) that would remain in 

proposed § 158.17 are those relating to 

the project meeting the eligibility 

requirements of § 158.15 and the airside 

needs requirements of current 

§ 158.17(a)(3). Therefore, the FAA 

proposes to delete current § 158.17 and 

move the airside needs requirement to 

a new paragraph within § 158.15(d). 

(e). Section 158.19—Requirement for 

Competition Plans 

The FAA proposes to re-number 

current § 158.19 as § 158.17. This 

amendment reflects re-numbering 

changes to part 158. 

(f) Section 158.20—Submission of 

Required Documents 

The FAA proposes four amendments 

to this section: (1) re-number current 

§ 158.20 as § 158.19, (2) revise 

paragraph (a) to allow for electronic 

submission of documents, (3) revise 

paragraph (b) because the databased 

referenced has been completed, and (4) 

move the section from subpart B to 

subpart A. 

The FAA now has the capability of 

receiving documents electronically, 

which it did not have at the time the 

regulation was written. The FAA’s PFC 

online database, System of Airports 

Reporting (SOAR), for collecting 

required reports is complete and this 

proposed change reflects this update. 

The FAA proposes to move this section 

to subpart A because electronic 

submission provisions should pertain to 

all documents, not just applications. 

2. Changes to Subpart B 

(a) Section 158.21—General 

The FAA proposes to amend current 

§ 158.21 to indicate that a public agency 

may either submit an application and 

obtain approval from the Administrator 

to impose a PFC and use PFC revenue 

or submit a notice of intent to impose 

a PFC and use PFC revenue. Currently 

this section only references PFC 

applications and FAA approval of PFC 

applications, not notices of intent and 

FAA acknowledgment of notices of 

intent. 

(b) Section 158.25—Applications 

The FAA proposes to add a new subparagraph, § 158.25(b)(8), directing 

public agencies to submit detailed cost 

information, as required by the 

Administrator. This proposed paragraph 

is similar to the cost detail information 

required by proposed § 158.30(b)(3)(iv) 

discussed in section IV.A.2., the 

rationale for which is described in that 

portion of the preamble. 


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3. Changes to Subpart C 

(a) Section 158.37 Amendment of 

Approved PFC 

The FAA proposes to amend § 158.37 

by adding a new paragraph (b)(1) 

requiring the Administrator to find the 

public agency has complied with the 

Reporting, Recordkeeping and Audit 

requirements before approving a PFC 

amendment as discussed in section 

V.B.1. This amendment encourages 

public agency compliance with audit 

and recordkeeping requirements and 

supports the FAA’s oversight of PFC 

audits. Further, this action informs 

public agencies of the need to submit 

PFC audit reports before submitting 

requests for amendments. 

(b) Section 158.43 Public Agency 

Notification to Collect PFCs 

The FAA proposes moving the last 

sentence of paragraph (c) to new 

paragraph (e) without change. This 

proposed change separates requirements 

for public agencies and air carriers to 

ensure that requirements for each of 

these entities are clear and accessible. 

(c) Section 158.45—Collection of PFCs 

on Tickets Issued in the U.S. 

The FAA proposes to insert ‘‘on the 

return’’ after ‘‘last two enplaning 

airports.’’ This proposed amendment 

change clarifies when PFCs can be 

collected and harmonizes with 

§ 158.9(a). 

4. Changes to Subpart D 

(a) Section 158.63—Reporting 

Requirements: Public Agency 

The FAA proposes to amend 

paragraph (a)(2) by adding 

‘‘reimbursements’’ to the list of 

information that must be included in 

quarterly reports. This proposed change 

clarifies that the public agency must 

report expenditures to outside entities 

as well as reimbursements to itself. This 

change is necessary so that the FAA can 

verify that the reimbursement is 

consistent with appropriate regulations, 

policies, and standards. It also provides 

the FAA with the relevant information 

to fulfill its recordkeeping and auditing 

responsibilities under 49 U.S.C. 

40117(g). 

(b) Section 158.67—Recordkeeping and 

Auditing: Public Agency 

The FAA proposes to change the title 

of this section from ‘‘Recordkeeping and 

auditing: Public agency’’ to ‘‘Accounting 

and auditing: Public agency.’’ This 

change supports general improvement 

in the FAA oversight of the PFC 

program by making audit requirements 

clearer for public agencies. 

(c) Section 158.69—Recordkeeping and 

Auditing: Collecting Carriers 

The FAA proposes to change the title 

of this section from ‘‘Recordkeeping and 

auditing: Collecting carriers’’ to 

‘‘Accounting and auditing: Collecting 

carriers.’’ This change supports general 

improvement in the FAA oversight of 

the PFC program by making audit 

requirements clearer for public agencies. 

5. Changes to Subpart E 

(a) Section 158.85—Termination of 

Authority To Impose PFCs 

The FAA proposes to re-number 

current § 158.85 as § 158.87. This 

amendment reflects re-numbering 

changes to part 158. 

(b). Section 158.87—Loss of Federal 

Airport Grant Funds 

Currently the requirements for loss of 

Federal airport grant funds are found in 

§ 158.87. The FAA proposes to 

redesignate these requirements as 

§ 158.89. This amendment reflects renumbering changes to part 158. 

Additionally, the FAA proposes to 

replace a reference to § 158.83with 

§ 158.85 and also replace a reference to 

§ 158.85 with § 158.87 within proposed 

§ 158.89(a). These amendments also 

reflect re-numbering changes to part 

158. 

6. Changes to Subpart F 

(a) Section 158.95—Implementation of 

Reduction 

The FAA proposes to amend 

paragraph (c) to add the word ‘‘either’’ 

in front of the number 50 and ‘‘75 

percent’’ after the word ‘‘or’’ to reflect 

the total reduction. These amendments 

use plain language for clarification and 

do not change the regulatory provisions. 

7. Changes to Appendix A 

Public agencies must comply with 

PFC assurances when implementing a 

project funded with PFC revenue. 

However, the assurances only reference 

PFC applications and FAA approval of 

PFC applications, not notices of intent 

and FAA acknowledgment of notices of 

intent. The FAA proposes to revise 

paragraphs A. 2 and A. 3 to reflect that 

the requirement to comply with PFC 

assurances also applies to notices of 

intent and FAA acknowledgment of 

notices of intent. 

8. Section Cross-Reference Table 

This section cross reference table is a 

re-designation listing of renumbered 

CFR units. This table also shows the old 

CFR unit numbers of former provisions 

along with corresponding new CFR unit 

numbers and current provisions. In 

instances where the FAA proposes to 

move a requirement from one section to 

another section, interested persons can 

look up the former section number for 

the requirement and find the new 

section number for that requirement. 

Similarly, in cases where the FAA is not 

proposing to change regulatory 

requirements within a section but 

proposes to re-number a section, 

interested persons can use the table to 

easily identify the new section number. 

TABLE 2—CROSS-REFERENCE LISTING CURRENT AND PROPOSED CFR SECTIONS

Current Provisions/CFR Reference Proposed Provisions/CFR References 

§ 158.11 ................................. Public agency request not to require collection of PFCs by 

a class of air carriers or foreign air carriers or for service 

to isolated communities.

§ 158.11 Requests for air carrier, foreign air carrier, or isolated 

community exclusion. 

§ 158.17(a)(1) ........................

§ 158.17(a)(3) ........................

Project eligibility at PFC levels of $4 or $4.50 ...................... § 158.15 

§ 158.15(d) 

Project eligibility. 

§ 158.18 ................................. Use of PFC revenue to pay for debt service for non-eligible 

projects.

§ 158.13(e) Use of PFC revenue. 

§ 158.19 ................................. Requirement for competition plans ....................................... § 158.17 Requirement for competition 

plans. 

§ 158.20 ................................. Submission of required documents ....................................... § 158.19 Submission of required documents. 

§ 158.25(b)(8) ........................ Applications ........................................................................... § 158.25(b)(9) Applications. 

§ 158.25(b)(9) ........................ § 158.25(b)(10) 

§ 158.25(b)(10) ...................... § 158.25(b)(11) 

§ 158.25(b)(11) ...................... § 158.25(b)(12) 


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TABLE 2—CROSS-REFERENCE LISTING CURRENT AND PROPOSED CFR SECTIONS—Continued 

§ 158.25(b)(12) ...................... § 158.25(b)(13) 

§ 158.25(b)(13) ...................... § 158.25(b)(14) 

§ 158.25(b)(14) ...................... § 158.25(b)(15) 

§ 158.25(b)(15) ...................... § 158.25(b)(16) 

§ 158.25(b)(16) ...................... § 158.25(b)(17) 

§ 158.25(b)(17) ...................... § 158.25(b)(18) 

§ 158.30(a) .............................

§ 158.30(b) .............................

§ 158.30(c) .............................

PFC Authorization at Non-Hub Airports ................................ § 158.30(a) 

§ 158.30(b) 

§ 158.30(c) 

Notices of intent. 

§ 158.30(d) ............................. FAA review of notices of intent. ............................................ § 158.31(b) FAA review of notices of intent. 

§ 158.30(e) .............................

§ 158.30(f) ..............................

§ 158.30(g) .............................

FAA acknowledgment of notices of intent ............................. § 158.32(a) 

§ 158.32(b) 

§ 158.32(c) 

FAA acknowledgment of notices of intent. 

§ 158.31 ................................. Duration of authority to impose a PFC after project implementation.§ 158.33 Duration of authority to impose a PFC after project 

implementation. 

§ 158.33 ................................. Duration of authority to impose a PFC before project implementation.§ 158.34 Duration of authority to impose a PFC before project 

implementation. 

§ 158.67 ................................. Recordkeeping and auditing: Public agency ......................... § 158.67 Accounting and auditing: 

Public agency. 

§ 158.69 ................................. Recordkeeping and auditing: Collecting carriers .................. § 158.69 Accounting and auditing: Collecting carriers. 

§ 158.71 ................................. Federal oversight ................................................................... § 158.83 Federal oversight. 

§ 158.83 ................................. Informal resolution. ................................................................ § 158.85 Informal resolution. 

§ 158.85 ................................. Termination of authority to impose PFCs ............................. § 158.87 Termination of authority to 

impose PFCs. 

§ 158.87 ................................. Loss of Federal airport grant funds ....................................... § 158.89 Loss of Federal airport grant 

funds. 

VI. Regulatory Notices and Analyses 

Federal agencies consider impacts of 

regulatory actions under a variety of 

Executive orders and other 

requirements. First, Executive Order 

12866 and Executive Order 13563 direct 

that each Federal agency shall propose 

or adopt a regulation only upon a 

reasoned determination that the benefits 

of the intended regulation justify the 

costs. Second, the Regulatory Flexibility 

Act of 1980 (Pub. L. 96–354) requires 

agencies to analyze the economic 

impact of regulatory changes on small 

entities. Third, the Trade Agreements 

Act (Pub. L. 96–39) prohibits agencies 

from setting standards that create 

unnecessary obstacles to the foreign 

commerce of the United States. Fourth, 

the Unfunded Mandates Reform Act of 

1995 (Pub. L. 104–4) requires agencies 

to prepare a written assessment of the 

costs, benefits, and other effects of 

proposed or final rules that include a 

Federal mandate that may result in the 

expenditure by State, local, and tribal 

governments, in the aggregate, or by the 

private sector, of $100,000,000 or more 

(adjusted annually for inflation) in any 

one year. The current threshold after 

adjustment for inflation is $177,000,000, 

using the most current (2021) Implicit 

Price Deflator for the Gross Domestic 

Product. This portion of the preamble 

summarizes the FAA’s analysis of the 

economic impacts of this rulemaking. 

In conducting these analyses, the FAA 

has determined that this rulemaking: 

will result in benefits that justify costs; 

is not an economically ‘‘significant 

regulatory action’’ as defined in section 

3(f) of Executive Order 12866; will not 

have a significant economic impact on 

a substantial number of small entities; 

will not create unnecessary obstacles to 

the foreign commerce of the United 

States; and will not impose an unfunded 

mandate on State, local, or tribal 

governments, or on the private sector. 

A. Regulatory Evaluation 

1. Need for the Regulation 

The proposed rule would amend the 

PFC regulations to: first, codify changes 

that have been self-implemented 

through the 2018 Reauthorization Act; 

second, improve PFC program oversight 

and administration based on the OIG 

report’s recommendations primarily 

concerning reporting, recordkeeping 

and audit processes; and third, replace 

obsolete references, correct grammar or 

reword language for clarity, and reorganize and re-number sections of part 

158. 

2. Baseline for the Analysis 

Five major sources of airport capital 

development funding are (1) the AIP; (2) 

PFCs imposed pursuant to Federal law; 

(3) tax-exempt bonds; (4) state and local 

grants; and (5) airport operating revenue 

from tenant lease and other revenuegenerating activities such as landing 

fees. 

The AIP has been providing Federal 

grants for airport development and 

planning since the passage of the 

Airport and Airway Improvement Act of 

1982 (Pub. L. 97–248). AIP funding is 

usually spent on projects that support 

aircraft operations such as runways, 

taxiways, aprons, noise abatement, land 

purchase, and safety or emergency 

equipment. The funds obligated for AIP 

are drawn from the airport and airway 

trust fund, which is supported by a 

variety of user fees and fuel taxes. 

Airports use different combinations of 

these sources depending on the 

individual airport’s financial situation 

and the type of project being 

considered. Smaller airports’ individual 

grants are of much smaller dollar 

amounts than the grants going to large 

and medium hub airports. Therefore, 

the smaller airports are much more 

dependent on AIP to meet their capital 

needs. Larger airports are much more 

likely to issue tax-exempt bonds or 

finance capital projects with the 

proceeds of PFCs. 

The PFC program was established in 

1990 and modified in 2005 to institute 

a pilot program for non-hub airports to 

streamline the application process in 

order for them to access the PFC 

revenues more efficiently and rapidly. 

The streamlined application process 

ensures the non-hub airports’ PFC 


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18 ‘‘Appendix A: List of NPIAS Airports’’ 

following this link: www.faa.gov/airports/planning_

capacity/npias/current Last accessed on November 

16, 2022. 

19Public Law 96–354, 94 Stat. 1164, 5 U.S.C. 

601–612. 

20Public Law 104–121, 110 Stat. 857, Mar. 29, 

1996. 

21Public Law 111–240, 124 Stat. 2504 Sept. 27, 

2010. 

22Small Business Administration (SBA). 2022. 

Table of Size Standards. Effective July 14, 2022. 

www.sba.gov/document/support-table-sizestandards. 

23www.data.census.gov/cedsci/table?q=488119&

g=0100000US&n=488111&

tid=CBP2020.CB2000CBP Last accessed November 

3, 2022. 

24Public Law 96–39 

25Public Law 103–465 

26Public Law 104–4. 

applications be treated as a notice of 

intent with the FAA review and 

acknowledgment within 30 days instead 

of 120 days. 

PFC Update 73–20 published in 

January 2020 gave notice that the FAA 

would review and acknowledge all 

allowed PFC applications received from 

small-, medium-, or large-hub airports 

within 30 days using streamlined 

procedures. This rulemaking proposes 

to codify this significant policy change 

into the FAA’s part 158 regulations. 

According to the National Plan of 

Integrated Airport Systems (NPIAS), 

which details the amounts and types of 

airport development eligible for Federal 

funding under the AIP over the next five 

years, there are nearly 3,300 public-use 

airports within the national airport 

system. The 2023–2027 NPIAS 18

published on September 30, 2022, 

identified 238 non-hub, 80 small-hub, 

35 medium-hub and 30 large-hub 

airports in addition to 2,904 other 

public-use airports. 

This proposed rulemaking would 

affect 145 small-, medium-, and largehub airports. As explained in the 

preceding paragraphs, proposed changes 

do not concern either the 2,904 other 

airports that do not use PFC revenues or 

the 238 non-hub airports that are 

currently benefiting from the 

streamlined application process over the 

last two decades. 

3. Benefits 

The FAA examined the proposed 

changes and identified one provision 

that would benefit approximately 145 

small-, medium-, and large-hub airports. 

Specifically, these airports would 

continue to use the streamlined 

application process shortening the 

FAA’s review and acknowledgment 

period to 30 days from 120 days beyond 

the expiration of the PFC Update 73–20. 

The FAA recognizes these gains in 

efficiency and faster service time to the 

affected airports. However, these 

benefits, which would continue to 

accrue to those airports, are not 

quantified or monetized. 

4. Costs 

The FAA has evaluated the cost 

impacts to the stakeholders involved in 

this proposed rulemaking, which 

includes the airports and the FAA. As 

discussed in the preceding preamble 

section, the FAA determined that the 

proposed changes would have no 

additional cost impacts to airports and 

the FAA. 

5. Regulatory Alternatives 

This rulemaking proposes 

amendments to the PFC regulations to 

address statutorily mandated program 

changes, program oversight 

improvements, and minor 

administrative changes, such as 

removing or correcting obsolete 

references. 

There are no legally supportable 

regulatory alternatives to implementing 

the statutory requirements for the 

proposed changes. The alternative to 

rulemaking would be to leave the 

existing system of orders, guidance, and 

policy documents in place. However, 

this is untenable long-term as 

decentralized program requirements 

hinder the FAA’s ability to ensure 

compliance and transparency. 

B. Regulatory Flexibility Determination 

The Regulatory Flexibility Act (RFA) 

of 1980 19, as amended by the Small 

Business Regulatory Enforcement 

Fairness Act of 1996 20 and the Small 

Business Jobs Act of 2010 21, requires 

Federal agencies to consider the effects 

of the regulatory action on small 

businesses and other small entities and 

to minimize any significant economic 

impact. The term ‘‘small entities’’ 

comprises small businesses and not-forprofit organizations that are 

independently owned and operated and 

are not dominant in their fields, and 

governmental jurisdictions with 

populations of less than 50,000. 

The FAA identified 145 airports that 

are owned and operated by both small 

and non-small entities. In order to 

estimate the number of small entities, 

the FAA used the Table of Size 

Standards 22 issued by the Small 

Business Administration (SBA) for the 

North American Industry Classification 

System (NAICS) and found two NAICS 

codes that these airports would fall 

under: 488111 (Air Traffic Control) and 

488119 (Other Airport Operations). 

SBA’s size standards generally define 

small businesses based on the number 

of employees or annual receipts. For 

these two NAICS codes, the size 

standard is established as $35 million 

(i.e., entities with annual receipts under 

$35 million are qualified as small 

businesses). 

Using the U.S. Census data for 488111 

and 488119 NAICS codes,23 the FAA 

estimated that, with the exception of 13 

airports reporting over $35 million 

annual revenue, the remaining 132 

airports are classified as small entities. 

The FAA did not identify any 

economic impacts on small entities that 

would be affected by the proposed rule. 

Therefore, the FAA proposes to certify 

that the rule will not have a significant 

economic impact on a substantial 

number of small entities. The FAA 

welcomes comments on the basis for 

this certification. 

C. International Trade Impact 

Assessment 

The Trade Agreements Act of 1979,24

as amended by the Uruguay Round 

Agreements Act,25 prohibits Federal 

agencies from establishing standards or 

engaging in related activities that create 

unnecessary obstacles to the foreign 

commerce of the United States. 

Pursuant to these Acts, the 

establishment of standards is not 

considered an unnecessary obstacle to 

the foreign commerce of the United 

States, so long as the standard has a 

legitimate domestic objective, such as 

the protection of safety, and does not 

operate in a manner that excludes 

imports that meet this objective. The 

statute also requires consideration of 

international standards and, where 

appropriate, that they be the basis for 

U.S. standards. 

The FAA has assessed the effect of 

this proposed rule and determined that 

its purpose is to ensure the safety of 

U.S. civil aviation. Therefore, this 

proposed rule is in compliance with the 

Trade Agreements Act. 

D. Unfunded Mandates Assessment 

Title II of the Unfunded Mandates 

Reform Act of 1995 26 requires each 

Federal agency to prepare a written 

statement assessing the effects of any 

Federal mandate in a proposed or final 

agency rule that may result in an 

expenditure of $100 million or more (in 

1995 dollars) in any one year by State, 

local, and tribal governments, in the 

aggregate, or by the private sector; such 

a mandate is deemed to be a ‘‘significant 

regulatory action.’’ The FAA currently 

uses an inflation-adjusted value of $177 

million in lieu of $100 million. This 

proposed rule does not contain such a 


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27 44 U.S.C. 3507(d). 

28 5 CFR 1320.8(b)(2)(vi). 

29 44 U.S.C. 3507(d). 

30 65 FR 67249 (Nov. 6, 2000). 

31FAA Order No. 1210.20 (Jan. 28, 2004), 

available at http://www.faa.gov/documentLibrary/ 

media/1210.pdf. 32 5 U.S.C. 552. 

mandate; therefore, the requirements of 

Title II of the Act do not apply. 

E. Paperwork Reduction Act 

The Paperwork Reduction Act of 

1995 27 requires that the FAA consider 

the impact of paperwork and other 

information collection burdens imposed 

on the public. According to the 1995 

amendments to the Paperwork 

Reduction Act 28, an agency may not 

collect or sponsor the collection of 

information, nor may it impose an 

information collection requirement 

unless it displays a currently valid 

Office of Management and Budget 

(OMB) control number. 

The FAA has determined that there 

would be no new information collection 

associated with this proposed 

rulemaking. The Office of Management 

and Budget (OMB) previously approved 

the FAA to collect such information 

under the provisions of the Paperwork 

Reduction Act of 1995 29 via OMB 

Control Number 2120–0557. 

On November 22, 2021, OMB 

approved a revision of the FAA’s 

previously approved information 

collection. That revision reflected 

changes in the estimated burden 

resulting from the 2018 Reauthorization 

Act and the FAA’s implementation of 

PFC Update 73–20. While this 

rulemaking proposes to codify these 

changes into the regulations, there are 

no new information collection actions 

resulting directly from this rulemaking 

action. 

F. International Compatibility 

In keeping with U.S. obligations 

under the Convention on International 

Civil Aviation, it is FAA policy to 

conform to International Civil Aviation 

Organization (ICAO) Standards and 

Recommended Practices to the 

maximum extent practicable. The FAA 

has determined that there are no ICAO 

Standards and Recommended Practices 

that correspond to these proposed 

regulations. 

G. Environmental Analysis 

FAA Order 1050.1F identifies FAA 

actions that are categorically excluded 

from preparation of an environmental 

assessment or environmental impact 

statement under the National 

Environmental Policy Act in the 

absence of extraordinary circumstances. 

The FAA has determined this 

rulemaking action qualifies for the 

categorical exclusion identified in 

paragraph 5–6.6 and involves no 

extraordinary circumstances. 

VIII. Executive Order Determinations 

A. Executive Order 13132, Federalism 

The FAA has analyzed this proposed 

rule under the principles and criteria of 

Executive Order (E.O.) 13132, 

Federalism. The agency has determined 

that this action would not have a 

substantial direct effect on the States, or 

the relationship between the Federal 

Government and the States, or on the 

distribution of power and 

responsibilities among the various 

levels of government, and, therefore, 

would not have Federalism 

implications. 

B. Executive Order 13175, Consultation 

and Coordination With Indian Tribal 

Governments 

Consistent with Executive Order 

13175, Consultation and Coordination 

with Indian Tribal Governments,30 and 

FAA Order 1210.20, American Indian 

and Alaska Native Tribal Consultation 

Policy and Procedures,31 the FAA 

ensures that Federally Recognized 

Tribes (Tribes) are given the opportunity 

to provide meaningful and timely input 

regarding proposed Federal actions that 

have the potential to affect uniquely or 

significantly their respective Tribes. At 

this point, the FAA has not identified 

any unique or significant effects, 

environmental or otherwise, on tribes 

resulting from this proposed rule. 

C. Executive Order 13211, Regulations 

That Significantly Affect Energy Supply, 

Distribution, or Use 

The FAA analyzed this proposed rule 

under E.O. 13211, Actions Concerning 

Regulations that Significantly Affect 

Energy Supply, Distribution, or Use 

(May 18, 2001). The agency has 

determined that it would not be a 

‘‘significant energy action’’ under the 

Executive order and would not be likely 

to have a significant adverse effect on 

the supply, distribution, or use of 

energy. 

D. Executive Order 13609, International 

Cooperation 

Executive Order 13609, ‘‘Promoting 

International Regulatory Cooperation,’’ 

promotes international regulatory 

cooperation to meet shared challenges 

involving health, safety, labor, security, 

environmental, and other issues and to 

reduce, eliminate, or prevent 

unnecessary differences in regulatory 

requirements. The FAA has analyzed 

this action under the policies and 

agency responsibilities of Executive 

Order 13609 and has determined that 

this action would have no effect on 

international regulatory cooperation. 

VIII. Additional Information 

A. Comments Invited 

The FAA invites interested persons to 

participate in this rulemaking by 

submitting written comments, data, or 

views. The agency also invites 

comments relating to the economic, 

environmental, energy, or federalism 

impacts that might result from adopting 

the proposals in this document. The 

most helpful comments reference a 

specific portion of the proposal, explain 

the reason for any recommended 

change, and include supporting data. To 

ensure the docket does not contain 

duplicate comments, commenters 

should send only one copy of written 

comments, or if comments are filed 

electronically, commenters should 

submit only one time. 

The FAA will file in the docket all 

comments it receives, as well as a report 

summarizing each substantive public 

contact with FAA personnel concerning 

this proposed rulemaking. Before acting 

on this proposal, the FAA will consider 

all comments it receives on or before the 

closing date for comments. The FAA 

will consider comments filed after the 

comment period has closed if it is 

possible to do so without incurring 

expense or delay. The agency may 

change this proposal in light of the 

comments it receives. 

Confidential Business Information: 

Confidential Business Information (CBI) 

is commercial or financial information 

that is both customarily and actually 

treated as private by its owner. Under 

the Freedom of Information Act 

(FOIA),32 CBI is exempt from public 

disclosure. If your comments responsive 

to this NPRM contain commercial or 

financial information that is customarily 

treated as private, that you actually treat 

as private, and that is relevant or 

responsive to this NPRM, it is important 

that you clearly designate the submitted 

comments as CBI. Please mark each 

page of your submission containing CBI 

as ‘‘PROPIN.’’ The FAA will treat such 

marked submissions as confidential 

under the FOIA, and they will not be 

placed in the public docket of this 

NPRM. Submissions containing CBI 

should be sent to the person in the FOR

FURTHER INFORMATION CONTACT section of 

this document. Any commentary that 

the FAA receives which is not 


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specifically designated as CBI will be 

placed in the public docket for this 

rulemaking. 

B. Availability of Rulemaking 

Documents 

An electronic copy of rulemaking 

documents may be obtained from the 

internet by— 

1. Searching the Federal eRulemaking 

Portal at www.regulations.gov; 

2. Visiting the FAA’s Regulations and 

Policies web page at www.faa.gov/ 

regulations_policies; or 

3. Accessing the Government Printing 

Office’s web page at www.GovInfo.gov. 

Copies may also be obtained by 

sending a request to the Federal 

Aviation Administration, Office of 

Rulemaking, ARM–1, 800 Independence 

Avenue SW, Washington, DC 20591, or 

by calling (202) 267–9677. Commenters 

must identify the docket or notice 

number of this rulemaking. 

All documents the FAA considered in 

developing this proposed rule, 

including economic analyses and 

technical reports, may be accessed from 

the internet through the Federal 

eRulemaking Portal. 

List of Subjects in 14 CFR Part 158 

Air carriers, Airports, Passenger 

facility charge, Public agencies, 

Reporting and recordkeeping 

requirements. 

The Proposed Amendments 

In consideration of the foregoing, the 

Federal Aviation Administration 

proposes to amend 14 CFR part 158 as 

follows: 

PART 158—PASSENGER FACILITY 

CHARGES (PFCS) 

■ 1. The authority citation for part 158 

continues to read as follows: 

Authority: 49 U.S.C. 106(g), 40116–40117, 

47106, 47111, 47114–47116, 47524, 47526. 

■ 2. In part 158, remove the text ‘‘PFC’s’’ 

wherever it appears, and add in its place 

the text ‘‘PFCs’’. 

■ 3. Amend § 158.3 by revising the 

definitions for ‘‘Approved project’’, 

Bond financing costs’’, ‘‘Charge effective 

date’’, Charge expiration date’’, ‘‘Debt 

service’’, ‘‘Exclusive long-term lease or 

use agreement’’, ‘‘FAA Airports office’’, 

‘‘Financial need’’, ‘‘Implementation of 

an approved project’’, and ‘‘Notice of 

intent (to impose or use PFC revenue)’’ 

to read as follows: 

§ 158.3 Definitions. 

* * * * * 

Approved project means a project for 

which the FAA has approved using PFC 

revenue under this part. The FAA may 

also approve specific projects contained 

in a single or multi-phased project or 

development described in an airport 

capital plan separately. This includes 

projects acknowledged by the FAA 

under § 158.32. 

Bond financing costs means the costs 

of financing a bond (or other 

indebtedness, except debt service) and 

includes such costs as those associated 

with issuance, underwriting discount, 

original issue discount, capitalized 

interest, debt service reserve funds, 

initial credit enhancement costs, and 

initial trustee and paying agent fees. 

Charge effective date means the first 

date on which carriers are required to 

start collecting a PFC. 

Charge expiration date means the date 

on which carriers are required to stop 

collecting a PFC. 

* * * * * 

Debt service means payments for 

items such as principal and interest, 

sinking funds, call premiums, periodic 

credit enhancement fees, trustee and 

paying agent fees, coverage, and 

remarketing fees. 

Exclusive long-term lease or use 

agreement means an exclusive lease or 

use agreement between a public agency 

and an air carrier or foreign air carrier 

with a term of 5 years or more. This 

term also applies to exclusive leases of 

less than 5 years that have automatic 

renewal or carryover options, or to 

leases that have the effect of granting 

exclusive use rights. 

FAA Airports office means a regional, 

district or field office of the Federal 

Aviation Administration that 

administers Federal airport-related 

matters. 

Financial need means that a public 

agency cannot meet its operational or 

debt service obligations and does not 

have at least a 2-month capital reserve 

fund. 

* * * * * 

Implementation of an approved 

project means: (1) With respect to 

construction, issuance to a contractor of 

notice to proceed or the start of physical 

construction; (2) with respect to nonconstruction projects other than 

property acquisition, commencement of 

work by a contractor or public agency to 

carry out the statement of work; or (3) 

with respect to property acquisition 

projects, commencement of title search, 

surveying, or appraisal for a significant 

portion of the property to be acquired. 

* * * * * 

Notice of intent (to impose or use PFC 

revenue) means a notice under § 158.30 

from a public agency that the public 

agency intends to impose a PFC or use 

PFC revenue. Except for §§ 158.25 and 

158.32, ‘‘notice of intent’’ can be used 

interchangeably with ‘‘application.’’ 

* * * * * 

■ 4. Revise the section heading to 

§ 158.11 to read as follows: 

§ 158.11 Requests for air carrier, foreign 

air carrier, or isolated community exclusion. 

* * * * * 

■ 5. Amend § 158.13 by revising 

paragraphs (e) and (f) to read as follows: 

§ 158.13 Use of PFC revenue. 

* * * * * 

(e) Exception providing for the use of 

PFC revenue to pay for debt service for 

non-eligible projects. The FAA may 

authorize a public agency to impose a 

PFC to make payments for debt service 

on indebtedness incurred to carry out at 

the airport a project that is not eligible 

if the FAA determines it is necessary 

because of the financial need of the 

airport. 

(1) A public agency may request 

authority to impose a PFC and use PFC 

revenue under this section using the 

PFC application procedures in § 158.25. 

The public agency must document its 

financial position and explain its 

financial recovery plan that uses all 

available resources. 

(2) The FAA reviews the application 

using the procedures in § 158.27. The 

FAA will issue its decision on the 

public agency’s request under § 158.29. 

(f) Combination of PFC revenue and 

Federal grant funds. A public agency 

may combine PFC revenue and airport 

grant funds to carry out an approved 

project. 

* * * * * 

■ 6. Amend § 158.15 by revising the 

section heading and adding paragraph 

(d) to read as follows: 

§ 158.15 Project eligibility. 

* * * * * 

(d) A surface transportation or 

terminal project is eligible for PFC 

funding at a level above $3 if the public 

agency has made adequate provision for 

financing the airside needs of the 

airport, including runways, taxiways, 

aprons, and aircraft gates. 

§ 158.17 [Removed] 

■ 7. Remove § 158.17. 

§ 158.19 [Redesignated as § 158.17] 

■ 8. Redesignate § 158.19 as § 158.17. 

■ 9. Redesignate § 158.20 as § 158.19 

and revise newly redesignated 

paragraphs (a) introductory text and (b) 

to read as follows: 

§ 158.19 Submission of required 

documents. 

(a) Submittals and documents 

required by this part may be transmitted 


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to the appropriate recipient (the public 

agency, air carrier, the FAA, or any 

combination thereof) electronically or 

via email, courier, facsimile, or U.S. 

Postal Service. 

* * * * * 

(b) Public agencies and air carriers 

may use the FAA’s national PFC 

database to post their required quarterly 

reports, and, in that case, do not have 

to distribute the reports in any other 

way. 

§ 158.20 [Reserved] 

■ 10. Reserve § 158.20. 

■ 11. Revise the heading to subpart B to 

read as follows: 

Subpart B—Applications and Notices 

of Intent 

* * * * * 

■ 12. Revise § 158.21 to read as follows: 

§ 158.21 General. 

This subpart specifies the application 

and notice of intent requirements under 

which a public agency may obtain 

authorization to impose a PFC and use 

PFC revenue on a project. This subpart 

specifies the consultation, notice and 

public comment, application, and notice 

of intent requirements under which a 

public agency may obtain approval or 

acknowledgment to impose a PFC and 

use PFC revenue on a project. This 

subpart also establishes the procedures 

for the Administrator’s review and 

approval of applications and 

amendments, procedures for FAA 

acknowledgment of notices of intent, 

and requirements for use of excess PFC 

revenue. 

■ 13. Amend § 158.24 by revising 

paragraph (a)(2) to read as follows: 

§ 158.24 Notice and opportunity for public 

comment. 

(a) * * * 

(2) The notice must allow the public 

to file comments for at least 30 days, but 

no more than 45 days, after the date of 

publication of the notice or posting on 

the public agency’s internet website, as 

applicable. 

* * * * * 

■ 14. Amend § 158.25 by revising 

paragraphs (b)(7) through (18), (c)(1)(i), 

(c)(1)(ii) introductory text, (c)(1)(iii), 

(c)(2)(iii)(C), (c)(2)(iv) introductory text, 

and (c)(2)(v) to read as follows: 

§ 158.25 Applications 

* * * * * 

(b) * * * 

(7) The project justification, including 

the extent to which the project achieves 

one or more of the objectives set forth 

in § 158.15(a) and (if a PFC level above 

$3 is requested) the requirements of 

§ 158.15. 

(i) For any project for terminal 

development, including gates and 

related areas, the public agency shall 

discuss any existing conditions that 

limit competition between and among 

air carriers and foreign air carriers at the 

airport, any initiatives it proposes to 

foster opportunities for enhanced 

competition between and among such 

carriers, and the expected results of 

such initiatives; or 

(ii) For any terminal development 

project at a covered airport, the public 

agency shall submit a competition plan 

in accordance with § 158.17. 

(8) Detailed cost information, in a 

form and manner acceptable to the 

Administrator. 

(9) The charge to be imposed for each 

project. 

(10) The proposed charge effective 

date. 

(11) The estimated charge expiration 

date. 

(12) Information on the consultation 

with air carriers and foreign air carriers 

having a significant business interest at 

the airport and the public comment 

process, including: 

(i) A list of such carriers and those 

notified; 

(ii) A list of carriers that 

acknowledged receipt of the notice 

provided under § 158.23(a); 

(iii) Lists of carriers that certified 

agreement and that certified 

disagreement with the project; 

(iv) Information on which method 

under § 158.24(b) the public agency 

used to meet the public notice 

requirement; and 

(v) A summary of substantive 

comments by carriers contained in any 

certifications of disagreement with each 

project and disagreements with each 

project provided by the public, and the 

public agency’s reasons for continuing 

despite such disagreements. 

(13) If the public agency is also filing 

a request under § 158.11— 

(i) The request; 

(ii) A copy of the information 

provided to the carriers under 

§ 158.23(a)(3); 

(iii) A copy of the carriers’ comments 

with respect to such information; 

(iv) A list of any class or classes of 

carriers that would not be required to 

collect a PFC if the request is approved; 

and 

(v) The public agency’s reasons for 

submitting the request in the face of 

opposing comments. 

(14) A copy of information regarding 

the financing of the project presented to 

the carriers and foreign air carriers 

under § 158.23 of this part and as 

revised during the consultation. 

(15) A copy of all comments received 

as a result of the carrier consultation 

and public comment processes. 

(16) For an application not 

accompanied by a concurrent 

application for authority to use PFC 

revenue: 

(i) A description of any alternative 

methods being considered by the public 

agency to accomplish the objectives of 

the project; 

(ii) A description of alternative uses of 

the PFC revenue to ensure such revenue 

will be used only on eligible projects in 

the event the proposed project is not 

ultimately approved for use of PFC 

revenue; 

(iii) A timetable with projected dates 

for completion of project formulation 

activities and submission of an 

application to use PFC revenue; and 

(iv) A projected date of project 

implementation and completion. 

(17) A signed statement certifying that 

the public agency will comply with the 

assurances set forth in appendix A to 

this part. 

(18) Other information as required by 

the Administrator. 

(c) * * * 

(1) * * * 

(i) The information required under 

paragraphs (b)(1) through (18) of this 

section; 

(ii) An FAA Form 5500–1 and 

applicable attachments: 

* * * * * 

(iii) The information required by 

§§ 158.25(b)(17) and 158.25(b)(18). 

(2) * * * 

(iii) * * * 

(C) For any project that has changed 

since receiving impose authority, the 

public agency must file updated project 

information for that project clearly 

describing the changes to the project. 

(iv) An FAA Form 5500–1 and 

applicable attachments: 

* * * * * 

(v) The information required by 

§§ 158.25(b)(17) and 158.25(b)(18). 

■ 15. Amend § 158.29 by: 

■ a. Revising paragraphs (a)(1)(ii), (iii) 

and (viii); 

■ b. Adding paragraph (a)(1)(ix); and 

■ c. Revising paragraphs (a)(2), (b)(1)(ii) 

and (iii), (b)(1)(iv)(2), and (d). 

The revisions and addition read as 

follows: 

§ 158.29 The Administrator’s decision. 

(a) * * * 

(ii) The project will achieve the 

objectives and criteria set forth in 

§ 158.15 except for those projects 

approved under § 158.13(e). 

(iii) If a PFC level above $3 is being 

approved, the project meets the criteria 

set forth in § 158.15(d); 

* * * * * 


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(viii) If applicable, the public agency 

has submitted a competition plan in 

accordance with § 158.17. 

(ix) The public agency has 

demonstrated compliance with the 

Reporting, Recordkeeping and Audit 

requirements of subpart D of this part in 

a form and manner acceptable to the 

Administrator. 

(2) The Administrator notifies the 

public agency in writing of the decision 

on the application. The notification will 

list the projects and alternative uses that 

may qualify for PFC financing under 

§ 158.15, and (if a PFC level above $3 is 

being approved) § 158.15(d), PFC level, 

total approved PFC revenue including 

the amounts approved at $3 and less, 

$4, $4.50, or any combination thereof, 

duration of authority to impose and 

earliest permissible charge effective 

date. 

(b) * * * 

(1) * * * 

(ii) The project will achieve the 

objectives and criteria set forth in 

§ 158.15 except for those projects 

approved under § 158.13(e). 

(iii) If a PFC level above $3 is being 

approved, the project meets the criteria 

set forth in § 158.15(d); and 

(iv) * * * 

(2) The Administrator notifies the 

public agency in writing of the decision 

on the application. The notification will 

list the approved projects, PFC level, 

total approved PFC revenue, total 

approved for collection, including the 

amounts approved at $3 and less, $4, or 

$4.50, or any combination thereof and 

any limit on the duration of authority to 

impose a PFC as prescribed under 

§ 158.34. 

* * * * * 

(d) The FAA provides notice of PFC 

approvals and disapprovals on the FAA 

internet website. 

■ 16. Amend § 158.30 by: 

■ a. Revising the section heading; 

■ b. Revising paragraphs (a), (b) 

introductory text, (b)(1) and (2), and 

(b)(3)(ii) and (iii); 

■ c. Adding paragraph (b)(3)(iv); 

■ d. Revising paragraphs (b)(7), (c) 

introductory text, (c)(1)(ii), and (c)(2)(i); 

and 

■ e. Removing paragraphs (d) through 

(h). 

The revisions and addition read as 

follows: 

§ 158.30 Notices of intent. 

(a) General. A public agency may 

notify the FAA of its intent to impose 

a PFC prior to or concurrently with a 

notice of intent to use PFC revenue. A 

public agency must file a notice of 

intent in the manner and form 

prescribed by the Administrator and 

must include the information required 

under paragraphs (b), (c), or both, of this 

section. 

(b) Notice of intent to impose a PFC. 

The public agency must file a separate 

notice of intent for each airport at which 

the public agency plans on imposing a 

PFC. An authorized official of the public 

agency must sign the notice of intent. 

Unless otherwise directed by the 

Administrator, the notice of intent must 

include: 

(1) A completed FAA Form 5500–1, 

PFC Application (current version) 

without attachments except as required 

below; 

(2) Project information including the 

project title, amount of PFC funds 

sought, PFC level sought, and the grant 

agreement number if an existing FAA 

awarded airport grant already covers 

this project. 

(3) If the project is not funded by an 

existing FAA awarded airport grant, the 

notice of intent must include the 

information in paragraph (b)(2) of this 

section in addition to the following: 

* * * * * 

(ii) A description of how the project 

meets one of the PFC objectives in 

§ 158.15(a), 

(iii) A description of how the project 

meets the adequate justification 

requirement in § 158.15(c), and 

(iv) Detailed cost information, in a 

form and manner acceptable to the 

Administrator. 

* * * * * 

(7) Other information as required by 

the Administrator. 

(c) Notice of intent to use PFC 

revenue. A public agency must file: 

(1) * * * 

* * * * * 

(ii) All applicable requirements 

pertaining to the Airport Layout Plan 

(ALP) for the airport, airspace studies 

for the project, and the National 

Environmental Policy Act of 1969 

(NEPA), have been satisfied for all 

projects not included in an existing 

Federal airport program grant. 

(2) * * * 

(i) Follow further consultation with 

air carriers and the opportunity for 

public comment under §§ 158.23 and 

158.24 of this part. A meeting with the 

air carriers is optional if all information 

is the same as that provided with the 

impose authority notice; 

* * * * * 

■ 17. Revise § 158.31 to read as follows: 

§ 158.31 Review of notices of intent. 

(a) The FAA will review the notice of 

intent to identify projects ineligible for 

notice of intent consideration. The FAA 

will notify the public agency in writing 

within 30 days if the FAA determines 

that projects involving the following are 

ineligible for notice of intent procedures 

as a result of: 

(1) Significant policy precedent. 

(2) Significant legal issues. 

(3) Significant controversy, as 

evidenced by significant opposition to 

the FAA’s proposed action by the 

applicant or other airport authorities, 

airport users, Federal, State or local 

agencies, elected officials, or 

communities. 

(4) Multimodal projects. 

(5) Significant airport noise, access, or 

revenue diversion issues, including 

compliance with 49 U.S.C. 47521 and 

49 U.S.C. 47111(e). 

(6) Debt Service on otherwise 

ineligible projects. 

(7) Blending of two or more PFC 

decisions to obtain a uniform collection 

level. 

(8) Terminal building projects in 

excess of $25 million, except standalone passenger boarding bridges. 

(b) The FAA will review the notice of 

intent to determine that: 

(1) The amount and duration of the 

PFC will not result in revenue that 

exceeds the amount necessary to finance 

the project(s); 

(2) Each proposed project meets the 

requirements of § 158.15; 

(3) Each project proposed at a PFC 

level above $3.00 meets the 

requirements of § 158.15(d); 

(4) All applicable airport layout plan, 

airspace, and environmental 

requirements have been met for each 

project; 

(5) Any request by the public agency 

to exclude a class of carriers from the 

requirement to collect the PFC is 

reasonable, not arbitrary, 

nondiscriminatory, and otherwise 

complies with the law; and 

(6) The consultation and public 

comment processes complied with 

§§ 158.23 and 158.24. 

(7) The public agency has complied 

with the Reporting, Recordkeeping and 

Audit requirements of subpart D of this 

part. 

(c) The FAA will also make a 

determination regarding the public 

agency’s compliance with 49 U.S.C. 

47524 and 47526 governing airport 

noise and access restrictions and 49 

U.S.C. 47107(b) governing the use of 

airport revenue. Finally, the FAA will 

review all comments filed during the air 

carrier consultation and public 

comment processes. 

■ 18. Add § 158.32 to read as follows: 

§ 158.32 FAA acknowledgment of notices 

of intent. 

(a) Within 30 days of receipt of the 

public agency’s notice of intent about its 


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PFC program, the FAA will issue a 

written acknowledgment of the public 

agency’s notice. The FAA’s 

acknowledgment may concur with all 

proposed projects, may object to some 

or all proposed projects, or may object 

to the notice of intent in its entirety. The 

FAA’s acknowledgment will include the 

reason(s) for any objection. 

(b) If the FAA does not object to a 

project or the notice of intent in its 

entirety, the public agency may 

implement its PFC program. The public 

agency’s implementation must be 

consistent with the information 

specified in its notice of intent. If the 

FAA objects to a project, the public 

agency may not collect or use PFC 

revenue on that project. If the FAA 

objects to the notice of intent in its 

entirety, the public agency may not 

implement the PFCs proposed in that 

notice. When implementing a PFC 

under this section, a public agency must 

comply with all sections of part 158, 

except for § 158.25. 

(c) An FAA acknowledgment issued 

under this section is not considered an 

order issued by the Secretary for 

purposes of 49 U.S.C. 46110 (Judicial 

Review). 

■ 19. Revise § 158.33 to read as follows: 

§ 158.33 Duration of authority to impose a 

PFC after project implementation. 

A public agency that has begun 

implementing an approved project may 

impose a PFC until— 

(a) The charge expiration date is 

reached; 

(b) The total PFC revenue collected 

plus interest earned thereon equals the 

allowable cost of the approved project; 

(c) The authority to collect the PFC is 

terminated by the Administrator under 

subpart E of this part; or 

(d) The public agency is determined 

by the Administrator to be in violation 

of 49 U.S.C. 47524 and 47526, and the 

authority to collect the PFC is 

terminated under that statute’s 

implementing regulations under this 

title. 

■ 20. Add § 158.34 to read as follows: 

§ 158.34 Duration of authority to impose a 

PFC before implementation. 

(a) A public agency shall not impose 

a PFC beyond the lesser of the 

following— 

(1) 2 years after approval to use PFC 

revenue on an approved project if the 

project has not been implemented; 

(2) 5 years after the charge effective 

date; or 

(3) 5 years after the FAA’s decision on 

the application (if the charge effective 

date is more than 60 days after the 

decision date) if an approved project is 

not implemented. 

(b) If, in the Administrator’s 

judgment, the public agency has not 

made sufficient progress toward 

implementation of an approved project 

within the times specified in paragraph 

(a) of this section, the Administrator 

begins termination proceedings under 

subpart E of this part. 

(c) The authority to impose a PFC 

following approval shall automatically 

expire without further action by the 

Administrator on the following dates: 

(1) 3 years after the charge effective 

date; or 3 years after the FAA’s decision 

on the application if the charge effective 

date is more than 60 days after the 

decision date unless— 

(i) The public agency has filed an 

application for approval to use PFC 

revenue for an eligible project that is 

pending before the FAA; 

(ii) An application to use PFC revenue 

has been approved; or 

(iii) A request for extension (not to 

exceed 2 years) to submit an application 

for project approval, under § 158.35, has 

been granted; or 

(2) 5 years after the charge effective 

date; or 5 years after the FAA’s decision 

on the application (if the charge 

effective date is more than 60 days after 

the decision date) unless the public 

agency has obtained project approval. 

(d) If the authority to impose a PFC 

expires under paragraph (c) of this 

section, the public agency must provide 

the FAA with a list of the air carriers 

and foreign air carriers operating at the 

airport and all other collecting carriers 

that have remitted PFC revenue to the 

public agency in the preceding 12 

months. The FAA notifies each of the 

listed carriers to terminate PFC 

collection no later than 30 days after the 

date of notification by the FAA. 

(e) Restriction on reauthorization to 

impose a PFC. Whenever the authority 

to impose a PFC has expired or been 

terminated under this section, the 

Administrator will not grant new 

approval to impose a PFC in advance of 

implementation of an approved project. 

§ 158.35 [Amended] 

■ 21. Amend § 158.35, in paragraph (d), 

by removing the citation ‘‘§ 158.33’’ and 

adding in its place the citation 

‘‘§ 158.34’’. 

■ 22. Amend § 158.37 by revising 

paragraphs (b)(1) introductory text, 

(b)(1)(i), (b)(6) and (7), and (c) to read as 

follows: 

§ 158.37 Amendment of approved PFC. 

* * * * * 

(b) * * * 

(1) The public agency has 

demonstrated compliance with the 

Reporting, Recordkeeping and Audit 

requirements of subpart D of this part in 

a form and manner acceptable to the 

Administrator. 

(i) Further consultation with the air 

carriers and foreign air carriers and seek 

public comment in accordance with 

§§ 158.23 and 158.24 when applying for 

those requests to: 

* * * * * 

(6) A description of how each project 

meets the requirements of § 158.15(d), 

for each project proposed for an increase 

of the PFC level above $3.00 at a 

medium or large hub airport; 

(7) A signed statement certifying that 

the public agency has met the 

requirements of § 158.15(d), if 

applicable, for any amendment 

proposing to increase the PFC level 

above $3.00 at a medium or large hub 

airport; and 

* * * * * 

(c) The Administrator will approve, 

partially approve or disapprove the 

amendment request and notify the 

public agency of the decision within 30 

days of receipt of the request. If a PFC 

level of more than $3.00 is approved, 

the Administrator must find the project 

meets the requirements of §§ 158.15(d) 

and 158.17, if applicable, before the 

public agency can implement the new 

PFC level. 

* * * * * 

■ 23. Amend § 158.43 by revising 

paragraph (c) and adding paragraph (e) 

to read as follows: 

§ 158.43 Public agency notification to 

collect PFCs. 

* * * * * 

(c) The public agency must notify air 

carriers required to collect PFCs at its 

airport and the FAA of changes in the 

charge expiration date at least 30 days 

before the existing charge expiration 

date or new charge expiration date, 

whichever comes first. 

* * * * * 

(e) Each notified air carrier must 

notify its agents, including other issuing 

carriers, of such changes. 

■ 24. Amend § 158.45 by revising 

paragraph (c) to read as follows: 

§ 158.45 Collection of PFCs on tickets 

issued in the U.S. 

* * * * * 

(c) For each one-way trip shown on 

the complete itinerary of an air travel 

ticket, issuing air carriers and their 

agents shall collect a PFC from a 

passenger only for the first two airports 

where PFCs are imposed. For each 

round trip, a PFC shall be collected only 

for enplanements at the first two 

enplaning airports and the last two 


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enplaning airports on the return where 

PFCs are imposed. 

* * * * * 

■ 25. Amend subpart D by revising the 

subpart heading to read as follows: 

Subpart D—Reporting, Accounting, 

and Audits 

■ 26. Amend § 158.63 by revising 

paragraph (a)(2) to read as follows: 

§ 158.63 Reporting requirements: Public 

agency. 

(a) * * * 

(2) Cumulative actual PFC revenue 

received, interest earned, project 

expenditures, reimbursements, and the 

amount committed for use on currently 

approved projects, including the 

quarter; 

* * * * * 

■ 27. Amend§ 158.67 by: 

■ a. Revising the section heading; 

■ b. Revising paragraphs (c)(1) through 

(3); and 

■ c. Adding paragraphs (c)(4) through 

(6) and (d) through (g). 

The revisions and additions read as 

follows: 

§ 158.67 Accounting and auditing: Public 

agency. 

* * * * * 

(c) Each public agency shall provide 

for an audit of its PFC account for the 

period the PFC is collected, held or 

used, as follows: 

(1) The public agency must conduct 

an audit of its PFC account annually; 

(2) The annual audit must be 

performed by an accredited 

independent public accountant and may 

be of limited scope; 

(3) The accountant shall express an 

opinion of the fairness and 

reasonableness of the public agency’s 

procedures for receiving, holding, and 

using PFC revenue; 

(4) The accountant shall also express 

an opinion on whether the quarterly 

report required under § 158.63 fairly 

represents the net transactions within 

the PFC account; 

(5) The public agency must provide a 

schedule of revenue and expenditures of 

the PFC account including: balance in 

the account on the first day of the fiscal 

year, PFC Collections for each Quarter, 

PFC Interest Earned for each Quarter, 

disbursements on projects by 

application for each quarter, closing 

balance; and 

(6) The audit must be performed on 

actual basis, unless the audit is 

accompanied by reconciliation 

documentation in a manner and form 

acceptable to the Administrator. 

(d) The audit may be— 

(1) Performed specifically for the PFC 

account; or 

(2) Conducted as part of an audit 

under the Single Audit Act, 31 U.S.C. 

75, provided the auditor specifically 

addresses the PFC. 

(e) Upon request, a copy of the audit 

shall be provided to each collecting 

carrier that remitted PFC revenue to the 

public agency in the period covered by 

the audit. 

(f) A copy of the audit shall be 

provided to the Administrator within 30 

calendar days after receipt of the audit 

or 9 months after the end of the audit 

period, whichever is less. 

(g) Each public agency that combines 

PFC revenue and Federal grant funds to 

carry out an approved project is subject 

to the recordkeeping and auditing 

requirements of this part, as well as the 

reporting, recordkeeping, and auditing 

requirements imposed by 49 U.S.C. 

47107 Airport and Airway Improvement 

Act of 1982 (AAIA). 

■ 28. Revise the section heading to 

§ 158.69 to read as follows: 

§ 158.69 Accounting and auditing: 

Collecting carriers. 

* * * * * 

§ 158.71 [Removed and Reserved] 

■ 29. Remove and reserve § 158.71. 

■ 30. Revise the subpart heading to 

subpart E to read as follows: 

Subpart E—Federal Oversight of 

Compliance, Informal Resolution, and 

Termination 

■ 31. Revise § 158.81 to read as follows: 

§ 158.81 General. 

This subpart contains the procedures 

for Federal oversight of compliance, 

informal resolution, and termination of 

PFCs, and loss of Federal airport grant 

funds for violations of this part or 49 

U.S.C. 40117. This subpart does not 

address the circumstances under which 

the authority to collect PFCs may be 

terminated for violations of 49 U.S.C. 

47523 through 47528. 

■ 32. Revise § 158.83 to read as follows: 

§ 158.83 Federal oversight of compliance. 

(a) The Administrator may 

periodically audit, review, or both audit 

and review, the receipt and use of PFC 

revenue by a public agency. The 

purpose of the audit or review is to 

ensure that the public agency is in 

compliance with the requirements of 

this part and 49 U.S.C. 40117. The 

Administrator may take further action 

including, but not limited to, informal 

resolution, termination, or other action, 

as appropriate. 

(b) The Administrator may 

periodically audit, review, or both audit 

and review the collection and 

remittance by the collecting carriers of 

PFC revenue. The purpose of the audit 

or review is to ensure collecting carriers 

are in compliance with the requirements 

of this part and 49 U.S.C. 40117. The 

Administrator may take further, as 

appropriate. 

(c) Public agencies and carriers shall 

allow any authorized representative of 

the Administrator, the Secretary of 

Transportation, or the Comptroller 

General of the U.S., access to any of its 

books, documents, papers, and records 

pertinent to PFCs. 

■ 33. Revise § 158.85 to read as follows: 

§ 158.85 Informal resolution. 

The Administrator may undertake 

informal resolution with the public 

agency or any other affected party if the 

Administrator cannot determine that 

PFC revenue is being collected, used, or 

both collected and used on an approved 

application for the approved projects in 

accordance with the terms of the 

Administrator’s approval to impose a 

PFC for those projects or in compliance 

with the requirements of this part and 

with 49 U.S.C. 40117. 

■ 34. Revise § 158.87 to read as follows: 

§ 158.87 Termination of authority to 

impose PFCs. 

(a) The FAA begins proceedings to 

terminate the public agency’s authority 

to impose a PFC only if the 

Administrator determines that informal 

resolution is not successful. 

(b) The Administrator publishes a 

notice of proposed termination in the 

Federal Register and supplies a copy to 

the public agency. This notice will state 

the scope of the proposed termination, 

the basis for the proposed action and the 

date for filing written comments or 

objections by all interested parties. This 

notice will also identify any corrective 

actions the public agency can take to 

avoid further proceedings. The due date 

for comments and corrective action 

shall be no less than 60 days after 

publication of the notice. 

(c) If corrective action has not been 

taken as prescribed by the 

Administrator, the FAA holds a public 

hearing, and notice is given to the 

public agency and published in the 

Federal Register at least 30 days prior 

to the hearing. The hearing will be in a 

form determined by the Administrator 

to be appropriate to the circumstances 

and to the matters in dispute. 

(d) The Administrator publishes the 

final decision in the Federal Register. 

Where appropriate, the Administrator 

may prescribe corrective action, 

including any corrective action the 

public agency may yet take. A copy of 


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66336 Federal Register / Vol. 88, No. 186 / Wednesday, September 27, 2023 / Proposed Rules 

the notice is also provided to the public 

agency. 

(e) Within 10 days of the date of 

publication of the notice of the 

Administrator’s decision, the public 

agency shall— 

(1) Advise the FAA in writing that it 

will complete any corrective action 

prescribed in the decision within 30 

days; or 

(2) Provide the FAA with a listing of 

the air carriers and foreign air carriers 

operating at the airport and all other 

issuing carriers that have remitted PFC 

revenue to the public agency in the 

preceding 12 months. 

(f) When the Administrator’s decision 

does not provide for corrective action or 

the public agency fails to complete such 

action, the FAA provides a copy of the 

Federal Register notice to each air 

carrier and foreign air carrier identified 

in paragraph (e) of this section. Such 

carriers are responsible for terminating 

or modifying PFC collection no later 

than 30 days after the date of 

notification by the FAA. 

■ 35. Add § 158.89 to read as follows: 

§ 158.89 Loss of Federal airport grant 

funds. 

(a) If the Administrator determines 

that revenue derived from a PFC is 

excessive or is not being used as 

approved, the Administrator may 

reduce the amount of funds otherwise 

payable to the public agency under 49 

U.S.C. 47114. Such a reduction may be 

made as a corrective action under 

§ 158.85 or § 158.87. 

(b) The amount of the reduction under 

paragraph (a) of this section shall equal 

the excess collected, or the amount not 

used in accordance with this part. 

(c) A reduction under paragraph (a) of 

this section shall not constitute a 

withholding of approval of a grant 

application or the payment of funds 

under an approved grant within the 

meaning of 49 U.S.C. 47111(d). 

■ 36. Amend § 158.95 by revising 

paragraph (c) to read as follows: 

§ 158.95 Implementation of reduction. 

* * * * * 

(c) If the projection of PFC revenue in 

a fiscal year is inaccurate, the reduction 

in apportioned funds may be increased 

or decreased in the following fiscal year, 

except that any further reduction shall 

not cause the total reduction to exceed 

either 50 percent or 75 percent of such 

apportioned amount as would otherwise 

be apportioned in any fiscal year. 

■ 37. Amend appendix A to part 158 by 

revising paragraphs (A)(2) and (3), and 

(B)(5) to read as follows: 

Appendix A to Part 158 Assurances 

A. * * * 

2. These assurances are required to be 

submitted as part of the application for 

approval or acknowledgment of 

authority to impose a PFC under the 

provisions of 49 U.S.C. 40117. 

3. Upon approval of an application or 

acknowledgment of a notice of intent by 

the Administrator, the public agency is 

responsible for compliance with these 

assurances. 

B. * * * 

5. Non-exclusivity of contractual 

agreements. It will not enter into an 

exclusive long-term lease or use 

agreement with an air carrier or foreign 

air carrier for projects funded by PFC 

revenue. Such leases or use agreements 

will not preclude the public agency 

from funding, developing, or assigning 

new capacity at the airport with PFC 

revenue. 

* * * * * 

Issued under authority provided by 49 

U.S.C. 106(f) and 40117 in Washington, DC. 

Shannetta R. Griffin, 

Associate Administrator for Airports. 

[FR Doc. 2023–20559 Filed 9–26–23; 8:45 am] 

BILLING CODE 4910–13–P 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Part 63 

[EPA–HQ–OAR–2023–0330; FRL–4908.1– 

01–OAR] 

RIN 2060–AV20 

Review of Final Rule Reclassification 

of Major Sources as Area Sources 

Under Section 112 of the Clean Air Act 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Proposed rule. 

SUMMARY: The EPA is proposing to add 

requirements for sources to reclassify 

from major source status to area source 

status under the National Emission 

Standards for Hazardous Air Pollutants 

(NESHAP) program. The requirements 

of this proposal would apply to all 

sources that choose to reclassify, 

including any sources which have 

reclassified since January 25, 2018. The 

EPA is proposing that sources 

reclassifying from major source status to 

area source status under the NESHAP 

program must satisfy the following 

criteria: any permit limitations taken to 

reclassify from a major source of 

hazardous air pollutants (HAP) under 

the Clean Air Act to an area source of 

HAP must be federally enforceable, any 

such permit limitations must contain 

safeguards to prevent emission increases 

after reclassification beyond the 

applicable major source NESHAP 

requirements at time of reclassification, 

and reclassification will only become 

effective once a permit has been issued 

containing enforceable conditions 

reflecting the requirements proposed in 

this action and electronic notification 

has been submitted to the EPA. 

Additionally, we are proposing 

clarifications to reporting requirements 

and updating language regarding 

submittal of confidential business 

information. 

DATES: 

Comments. Comments must be 

received on or before November 13, 

2023. Under the Paperwork Reduction 

Act (PRA), comments on the 

information collection provisions are 

best assured of consideration if the 

Office of Management and Budget 

(OMB) receives a copy of your 

comments on or before October 27, 

2023. 

Public hearing: If anyone contacts us 

requesting a public hearing on or before 

October 2, 2023, we will hold a virtual 

public hearing. See SUPPLEMENTARY

INFORMATION for information on 

requesting and registering for a public 

hearing. 

ADDRESSES: You may send comments, 

identified by Docket ID No. EPA–HQ– 

OAR–2023–0330, by any of the 

following methods: 

• Federal eRulemaking Portal: 

https://www.regulations.gov/ (our 

preferred method). Follow the online 

instructions for submitting comments. 

• Email: a-and-r-docket@epa.gov. 

Include Docket ID No. EPA–HQ–OAR– 

2023–0330 in the subject line of the 

message. 

• Fax: (202) 566–9744. Attention 

Docket ID No. EPA–HQ–OAR–2023– 

0330. 

• Mail: U.S. Environmental 

Protection Agency, EPA Docket Center, 

Docket ID No. EPA–HQ–OAR–2023– 

0330, Mail Code 28221T, 1200 

Pennsylvania Avenue NW, Washington, 

DC 20460. 

• Hand/Courier Delivery: EPA Docket 

Center, WJC West Building, Room 3334, 

1301 Constitution Avenue NW, 

Washington, DC 20004. The Docket 

Center’s hours of operation are 8:30 

a.m.–4:30 p.m., Monday–Friday (except 

federal holidays). 

Instructions: All submissions received 

must include the Docket ID No. for this 

rulemaking. Comments received may be 

posted without change to https://

www.regulations.gov/, including any 

personal information provided. For 

detailed instructions on sending 

comments and additional information 


ddrumheller on DSK120RN23PROD with PROPOSALS1