Order : 2010-7-1 6

UNITE D STATE S O F AMERIC A DEPARTMEN T O F TRANSPORTATIO N OFFIC E O F TH E SECRETAR Y WASHINGTON , D.C . Issue d b y th e Departmen t o f Transportatio n o n th e 30th da y o f

July , 201 0 I n th e Matte r

o f Gran t Application s SMAL L COMMUNIT Y AI RSERVIC E DEVELOPMEN T PROGRA M unde r 4 9 U.S.C . 4174 3 e t

seq . DOCKE T DOT-OST-2010-012 4 Served : Jul y 30,201 0

ORDE RSOLICITIN G COMMUNIT Y GRAN T PROPOSAL S OVERVIE W B y thi s order , th e Departmen t invite s proposal s fro mcommunitie s and/o r consorti ao f communitie s intereste d i n obtainin g afedera l gran t unde r th e Smal l Communit y Ai r Servic e Developmen t

Progra m(Smal l Communit y Program ) t o addres s ai r servic e an d airfar e problem s i n thei r communities . Proposals , includin g acomplete d "Summar y Information " schedul e a s show n i n Appendi x B o f

thi s order , mus t

b e submitte d i n th e above-reference d docke t n o late r tha n 5 PM , Easter n Dayligh t Tim e (EDI) , o n Augus t 27,2010 . Th e Smal l Communit y Progra mwa s establishe d unde r th e Wendel l H . For d Aviatio n Investmen t an d ReformAc t

fo r th e 21s t Centur y (AIR-21) , P.L . 106-181 , an d reauthorize d unde r th e Visio n 100-Centur

y o f Aviatio n Reauthorizatio n Act , P.L . 108-17 6 (Visio n 100) . Th e progra mi s designe d t o provid e financia l assistanc e t o smal l communitie s t o hel p the menhanc e thei r ai r service . Th e Departmen t

provide s thi s assistanc e i n th e for mo f financia l grant s tha t

ar e disburse d o n areimbursabl e basis. ' Th e F Y 201 0 Federa l Aviatio n Administratio n Extensio n Ac t (P.L . 111-69 ) extend s th e authorizatio n of appropriation s throug h F Y 2010 . Th e Departmen t

• Fo r detaile d background o

n the Smal l Communit

y Program , se

e ou r websit e at : http://ostpxweb.dot.gov/aviation/X-50%20RoleJiles/smaUcommunity.htm .- 1

-

wa s appropriate d $ 6 millio n to carr y ou t th e Smal l Communit

y Program. ^ However , th e Department

wil l mak e $ 7 millio n availabl e fo

r gran t awards. ^ Th e progra

mi s limite d to amaximu mof 4 0 grant awards , wit

h amaximu mof

fou r grant s pe r State , i n eac h yea

r th e progra

mi s funded . Ther e are n o limit s o n th e amount s of individual awards , an d th e amount s awarde d wil l var y dependin g upo n th e feature s and merit s of th e proposal s selected . Ove r

th e pas t nin e years , th e Department' s individual grant s hav e range d fro m$20,00 0 t o nearl y $1. 6 million . Authorize d gran t project s ma

y includ e activitie s tha

t exten d over

amulti-yea

r perio d under

asingl e gran t

award ; however , becaus e there i s apriorit y establishe d b y statu e fo

r communitie s and consorti atha t sho w tha t the y ca n us e th e assistanc e "i n atimel y fashion, " applicant s ar e advise d t o conside r

tha t criterio n i

n makin g thei r

proposals . Applicant s mus t

firs t registe r with www.grants.go v befor e submittin g a n Applicatio n fo r Federa l Domesti c Assistanc e (SF424) , astandar d federa l governmen t gran t applicatio n form , an d mus t

includ e thei r

proposal s a s a n attachmen t t o th e SF424 . An applicatio n wil l no t b e deeme d complet e unti l an d unles s all require d material s ar e file d b y th e Augus t 27 , 2010 , deadline . Communitie s ar e reminde d t o registe r wit h Grants.go v earl y i n th e applicatio n perio d sinc e th e mandator y Grants.go v registratio n proces s ca n tak e u p t o thre e week s t o complete . Tutorial s an d other guidanc e fo

r completin g th e require d registratio n and applicatio n procedure s ar e availabl e a

t th e "Applican t

Resources " pag e of

Grants.gov.' ^ ELIGIBILIT Y INFORMATIO N Wh o i s Eligibl e t o Appl y fo r aGrant ? Basi c criteria . Eligibl e applicant s are thos e communitie s tha t (1 ) ar e serve d b y a

n airpor t tha t wa s no t larger tha n asmal l hu

b airpor t fo r calenda r yea r 1997, ^ an d (2 ) hav e insufficien t ai r servic e o r unreasonabl y hig h airfares . Communitie s tha t d o no t currentl y hav e commercial ai r servic e ar e als o eligible , bu t

they mus t

hav e me t o r b e abl e to meet

in areasonabl e perio d al l necessar y requirement s of

th e Federa

l Aviatio n Administratio n fo r th e typ e of

servic e involve d i n thei r grant proposals . Communitie s serve d b y mediu man d larg e hub s ar e no t eligibl e t o apply . Essentia l Ai r

Servic e communitie s ma y apply . Smal l communitie s tha t mee t th e basi c criteri a and currentl y receiv e subsidize d air servic e under

th e Essential Ai r

Servic e (EAS ) progra

mar e eligibl e to appl y fo

r fund s under

th e Smal l Communit

y Program . Indeed , anumber of EAS

2 Progra mfundin g fo r thi s yea r ma y b e affecte d b y aprovisio

n tha t directs th e Secretar y t o transfe r fund s fro man y progra mwithi n o r administere

d b y th e Offic e o f th e Secretar y t o th e Essentia l Ai r Service progra mi f tha t progra mdoe s no t hav e sufficien t fund s t o mee t it s statutor y obligations . I

n addition , a portio n o f th e fund s availabl e fo r th e Smal l Communit

y Progra mar e use d b y th e Departmen

t fo r grants managemen

t purposes . A

s o f June , Congres s appropriate

d $4,980,00

0 o f th e $ 6 millio n i n funding ; however , th e remainin g $1,020,00

0 i s expecte

d t o b e appropriate

d i n th e nex t reauthorizatio

n bill . I f fund s ar e no t authorize d b y th e tim e selection s ar

e made , gran

t fund s wil l remai n a t th e $4,980,00

0 level . 3 Th e Departmen

t wil l b e addin g additiona l fund s tha t ca n b e reallocate d fro mprio r yea r recoveries . ^ Se e http://www07.grants.gov/applicants/app_help_reso.jsp . 5 Th e hu b classification s ar

e base d o n th e Federa l Aviatio n Administration' s C

Y 199 7 enplanemen

t data .subsidize d communitie s applie d i n pas t year s and some hav e receive d grant awards . However , grant award s t o EAS-subsidize d communitie s ar e limite d to marketin g o r

promotio n project s tha

t suppor t existin g o r

newly subsidize d ai r

services . Grant

fund s wil l no t

b e authorize d fo

r EAS

subsidize d communitie s to suppor t an y new competin g ai r

service . Furthermore , n o fund s wil l b e authorize d t o suppor

t additional flight s b y EA S carrier s o r change s to thos e carriers ' existin g schedules . Thes e restriction s ar e necessar y t o avoi d conflict s wit

h th e EA S program . Additiona l consideratio n fo r communities/member s of consorti atha t

hav e previousl y receive d agrant . Communitie s or member s o

f aconsorti atha

t wer e awarde d grant s i

n previou s year s an d want

to appl y fo

r agrant thi s yea r shoul d b e awar

e tha t (I ) the y ar

e preclude d fro

m seekin g new fund s fo

r project s fo

r whic h the y hav e already receive d a n awar d under th e Smal l Communit

y Progra man d (2 ) the y canno t

accep t ane w grant

whil e the y ar e apart

y to a n existin g grant under th e program , either

a s a n individual conmiunit

y or a s amember

of aconsortium . Gran t mus t b e for anew project . N o communit y ma y participat e in th e progra

min suppor

t o f th e same projec t

more tha n once . 4 9 U.S.C . § 41743(c)(4) . In assessin g whether apreviou s grantee' s curren t

proposal represent s ane w project , we woul d compare th e goal s an d objective s o f th e earlie r

grant , includin g th e ke y component s of th e mean s b y whic h thos e goal s an d objective s were to b e achieved , t o th e curren t proposal . Fo r

example , i

f aconununity receive d a n earlie r grant to suppor t arevenu e guarante e fo

r servic e t o aparticula

r destinatio n o r

direction , ane w applicatio n fo

r another revenu e guarante e fo

r th e same servic e woul d b e disqualifie d unde r § 41743(c) , eve n i

f th e revenu e guarante e wer e structure d differentl y o r th e typ e of

carrier wer e different . However , w e d o no t read § 41743(c ) t o disqualif y anew applicatio n fo

r servic e t o a ne w destinatio n o r

directio n usin g arevenu e guarantee , or fo r general marketin g of

th e airpor t and th e variou s service s i

t offers . We recogniz e tha

t no t al l revenu e guarantees , marketin g agreements , equipment

purchases , etc . are of

th e sam e nature , and tha

t i f asubsequent

proposa l incorporate s differen

t goal s or significantl y differen

t components , i

t ma y b e sufficiently differen

t t o constitut e anew projec t under § 41743(c) . I n it s application , acommunit y tha t i s apreviou s gran t

recipient shoul d compare and contras t it s propose d projec t

wit h it s previousl y funde d one(s ) t o demonstrate why it s lates t proposa l represent s ane w project . Communitie s shoul d als o note tha t in eac h o f

th e prio r eight year s of th e program , interes t

i n participatio n exceede d bot h th e fund s availabl e an d th e number of communitie s tha

t coul d tak e par t in any on e year . Fo r

thi s reason , th e fac t

tha t acommunit

y ha s alread y receive d on e o r

mor e grant s wil l b e aconsideratio n when comparin g it s new proposa l wit h thos e o f other applican t communities . N o concurren t

erant s ar e permitted . A communit y or membe r o f aconsorti ama

y participate in th e progra masubsequen t

tim e onl y afte

r it s participatio n i

n aprio r gran t ha s terminated . 4 9 U.S.C . § 41743(c)(4) . Simpl y stated , aconmiunit y ca n hav e onl y on e Smal l Communit y Progra mgran t a t an y time . I

f agrant applican t i s applyin g fo

r asubsequen t

grant and it s curren t gran t ha s no t yet expired , i t

mus t notif y th e Departmen t

o f it s intent t o terminate th e curren t

grant prio r to enterin g into th e new grant . I n addition , fo

r grant applicant s tha

t are member s of

a consorti agrant , permissio n mus t b e grante d frombot

h th e grant

sponso r an d th e Department

to withdra w fromth e curren t

grant prio r to bein g eligibl e t o receiv e asubsequent grant .Subsidie s fo r acarrie r t o compet e agains t

a n incumben t

rais e concerns . Th e Department i s reluctan t t o subsidiz e on e carrie r

but no t other s in acompetitiv e market . Fo r thi s reason , communitie s tha

t propos e t o us e th e gran t

fund s for servic e i n acity-pai r

marke t tha t i s already serve d b y acarrie r

mus t explai n i n detai l wh

y th e existin g servic e i s insufficient or unsatisfactory , o

r provid e other

compellin g informatio n to suppor t suc h proposals . Thi s informatio n i s necessar

y fo r th e Departmen t

to conside r

th e competitiv e implication s of givin g financia l o r othe r tangibl e incentive s fo

r on e carrie r

tha t th e othe r carrie r i s no t receiving . Subsid y proposal s shoul d reflec t marke t analysi s an d acomplementar y marketin g commitment . A thoroug h understandin g of th e targe t market i s essential for

th e ultimate succes s of new o r expande d ai r

service . Likewise , th e chance s tha t suc h aservic e wil l become self-sustainin g ar

e enhance d whe n it s implementatio n i s supporte d b y awell-designe d marketin g campaign . Fo r

thes e reasons , communitie s requestin g fund s fo r arevenu e guarantee/subsidy/ financia l incentiv e are encourage d to includ e in thei r proposal s a

n in-dept h analysi s evidencin g clos e familiarit

y wit h thei r targe t markets . Suc h communitie s als o are encourage d to designate in thei r proposal s aportio n of

thei r requeste d ftmds fo

r th e developmen t

an d implementatio n of

a marketin g pla

n i n suppor t o f th e servic e sought . A consortiu mi s mor e tha n acollectio n o f communities . Th e statute permit s individua l communitie s an

d consorti ao f

communitie s t o appl y for

grant award s unde r

thi s program . I

n some instance s i

n th e past , severa

l communitie s in aState hav e filed asingl e applicatio n a s a "consortium, " but

i n effec t th e applicatio n wa s acollectio n of individual communit

y request s involvin g differen

t projects . W

e d o no t vie w thi s a s aconsortium . Rather , a n applicatio n representin g aconsortiu mwoul d b e on e tha t facilitate s effort s o

f communitie s workin g together toward ajoin t

grant project . For

example , severa

l communitie s surroundin g a n airpor t ma y appl y togethe r

to improv e air

service s a

t tha t airport , or

surroundin g airport s ma

y wor k togethe r to provid e regiona

l ai r service . Multipl e application s b y acommunit y wil l no t b e considered . Th e Departmen t request s tha

t communitie s file onl y on e applicatio n fo r agrant . In th e past , some communitie s hav e file d bot h individual application s an d application s a s par t o f aconsortium . I

n man y case s thes e application s hav e involve d th e same projec t a t th e same o r

differen t fundin g levels . We wil l no t consider th e stand-alon e applicatio n i f acommunit

y i s als o submittin g alargel y identica l reques t a s par t of aconsortium . T o th e exten t tha t aconununity file s separatel y an d a s par t o f a consortiu mfo

r complementar

y projects—fo r

example , one fo

r arevenu e guarante e an d on e fo r marketing—w e wil l conside r suc h proposals . However , communitie s shoul d b e aware tha t the y ca n receiv e onl y on e grant , either th e stand-alon e grant

o r a s amember

o f aconsortium , becaus e n o communit

y ca n hav e concurrent

grants . Cos t Sharin g an d Loca l Contribution s Ar e Importan t Factor s Th e statute doe s no t

require communitie s to contribute toward agrant project , bu t

thos e communitie s tha

t contribut e fro

mloca l source s othe r

tha n airpor t revenue s are accorde d priorit y consideration . One core objectiv e o f th e Smal l Communit

y Programi s to promot e communit y involvement

in addressin g air

service/ai r

far e issue s throug h public/privat e partnerships . A s a financia l stakeholder

in th e process , th e connmunit y gain s greater

contro l ove r

th e type , quality .an d succes s o f th e ai r servic e initiative s tha t

wil l bes t mee t it s needs , an d demonstrate s agreate r commitmen t

toward s achievin g th e state d goals . Th e Departmen t ha s historicall y receive d man y mor e application s tha n ca n b e accommodate d an d nearl y al l o f thos e application s hav e propose d acommunit y financia l contributio n t o th e project . Thus , proposal s tha t propos e acommunit y financia l contributio n wil l b e give n priorit y consideration . Type s o f contributions . Contribution s shoul d represen t ane w financia l commitmen t o r ne w financia l resource s devote d t o attractin g ne w o r improve d service , o r

addressin g specifi c high

far e o r othe r servic e issues , suc h a s improvin g patronag e o f existin g servic e a t

th e airport . Contribution s fro malready-existin g program s o r project s (e.g. , designatin g aportio n o f an airport' s existin g annua l marketin g budge t t o th e project ) ar e considere d les s favorabl y tha n contribution s fo r

ne w an d innovativ e program s o r projects . Fo r

thos e communitie s tha t propos e t o contribut e t o th e gran t project , tha t

contributio n ca n b e i n th e followin g forms : Cas h fro mnon-airpor t

revenues . A cas h contributio n ca n includ e fund s fro mth e State , th e Count y o r

th e loca l government , and/o r fro mloca l businesses , o r othe r privat e organization s i n th e community . Contribution s tha t ar e comprise d o f

intangibl e non-cas h items , suc h a s th e "value " o f

donate d advertising , ar e considere d "in-kind " contribution s (se e furthe r discussio n below) . Cas h fro mairpor t

revenues . Thi s include s contribution s fro mfund s generate d b y airpor t operations . Airpor t

revenue s ma y no t

b e use d fo r

revenu e guarantee s t o airlines. ^ Communit y proposal s tha t includ e loca l contribution s base d o n airpor t revenue s d o no t receiv e priorit y consideratio n fo r selection . In-kin d contribution s fro mth e airport . Thi s ca n includ e suc h item s a s waiver s o f landin g fees , termina l rents , fue l fees , and/o r vehicl e parkin g fees . In-kin d contribution s fro mth e community . Thi s ca n includ e suc h item s a s donate d advertisin g fro mmedi aoutlets , caterin g service s fo r inaugura l events , o r

in-kin d trading , suc h a s advertisin g i n exchang e fo r fre e ai r travel . Trave l bank s an d trave l commitments/pledge s ar e considere d t o b e in-kin d contributions, ' a s ar e reduce d fare s offere d b y airlines . Cas h vs . in-kin d contributions . Onl y loca l contribution s mad e i n cas h ar e give n priorit y consideratio n fo r

selection . Contribution s mad e in-kin d o r throug h othe r

service s ma y b e valuabl e i n helpin g t o promot e th e objective s o f th e application , the y ar e no t afforde d priorit y i n th e selectio n process . 6 4 9 U.S.C . §§47107 , 47133 . ' A trave l "bank " involve s th e actual deposi t of fund s fro mparticipatin g partie s (e.g. , businesses , individuals ) into adesignate d ban k accoun t fo r th e purpos e o

f purchasin g air

trave l on th e selecte d airline , wit h define d procedure s fo

r th e subsequen t

us e or withdrawa

l o f thos e fund s under

a n agreemen t

wit h th e airline . Often , however , wha t communitie s refe

r to a s atrave l "bank " in realit y involve s trave l "pledges " fro mbusinesse s i

n th e communit

y withou t an y collectio n of

fund s o r forma l procedure s fo

r us e o f th e funds . A s wit

h other type s of in-kin d contributions , th e Departmen t view s trave l bank s an d pledge s include d i n gran t proposal s a s a

n indicato r

o f loca l communit

y support .Financia l commitment s mus t b e fulfilled . Applicant

communitie s shoul d note that , a s par t o f th e grant agreement

betwee n th e Department

and th e community , th e communit y ha s legall y committe d itsel f

to fulfillin g it s propose d financia l contributio n to th e projec t an d tha t it s failur e t o meet thi s commitment

coul d lea d th e Department

t o terminat e th e grant . Communit y participatio n i

n al l aspect s of

th e proposal , includin g th e financia l aspects , i s critical t o th e succes s o f the authorize d projec t

initiative . A s wit

h th e grant

award s in pas t

years , receip t

of th e ful l federa l contributio n awarde d wil l thu s b e linke d t o th e community' s fulfillmen t o f it s financia l contribution . Furthermore , communitie s canno t propos e acertai n leve l of cas h contributio n fro

mnon-airpor

t sources , and subsequen t

to bein g awarde d agrant , see k to substitut e o r

replac e tha

t contributio n wit

h eithe r "in-kind " contribution s o r contribution s fro

m airpor t revenues , or

both . Give n th e statute' s priorit y fo r contribution s fro

mnon-airpor

t source s an d th e competitiv e natur e of th e selectio n process , acommunity' s gran t award coul d b e reduce d or terminate d altogethe r

i f i t i s unabl e t o replac e th e committe d fund s fro mnon-airpor

t revenu e sources . Reimbursement s fo r

Advanc e Payments : Th e Smal l Communit y Progra mi s areimbursabl e progra mtherefore communitie s ar e require d to mak

e advanc e payment s fo

r fund s expende d i

n associatio n wit

h th e projec t

implementatio n under

th e progra

man d the n seek

reimbursement . Reimbursemen t

rate s are calculate d a s apercentag e o f th e total Federal fund s requeste d divide d b y th e Federa

l fun d plu s th e loca

l cas h contributio n (whic h i s no t refundable) . Advanc e payment s in form s othe r

tha n cas h (e.g . in-kind ) are no t reimbursable . I

f there i s an

y questio n abou t whether apropose d payment

woul d b e considere d a s "in-kind " o r cash , th e applicant shoul d contac t

th e Departmen t

befor e submittin g it s proposal . APPLICATIO N AND SUBMISSIO N INFORMATIO N Filin g Deadlin e an d Procedure s Gran t application s ar e du e b y 5 P M ED T o n Augus t 27 , 2010 . A s par

t of th e submissio n process , a n applican t

mus t registe r a s agran t applican t a t www.grants.go v and complete th e Applicatio n fo

r Federa l Domesti c Assistanc e for

mSF424 . A

n applicant

mus t als o includ e it s gran t proposal , includin g acomplete d "Summar y Information " schedul e (se e Appendi x B) , a s a n attachment

to it s SF424 . In addition , th e cove r pag e of eac h applicatio n shoul d contai n th e informatio n specifie d under "Cove r pag e contents, " below . Question s regardin g th e progra m shoul d b e directe d to th e Offic e of Aviatio n Analysi s o n (202 ) 366-234 7 o r aloha.ley@dot.gov . SF424 . Communitie s no t previousl y registere d ar e encourage d t o registe r wit h Grants.go y earl y durin g th e applicatio n perio d becaus e th e registratio n an d SF42 4 applicatio n proces s require d b y www.grants.go v ca n tak e u p t o thre e week s t o complete . A communit y ma y fil e it s proposal anytime afte

r th e initial registratio n proces s ha s bee n complete d o n www.grants.go v a s lon g a s th e entire applicatio n i s filed b y Augus t 27 , 2010 . Communitie s are encourage d t o contac t th e Grants.go v hel p des k

fo r an y technica l assistanc e in filin g thei r

applications . Th e Grants.go v "Applican t Resources " pag e (www07.grants.gov/applicants/app_help_reso.jsp ) provide s instruction s and guidanc e o n completin g th e registratio n and applicatio n processes . Further , grant

proposal s mus t

b e submitte d a s a

n attachmen t

t o th e SF424 . A

n applicatio n wil lNO T b e deeme d complete and wil l b e ineligibl e fo r agrant awar d unles s th e SF42 4 an

d the attache d proposal (includin g th e complete d "Summar y Information " schedule ) hav e been submitte d throug h Grants.go v b y th e 5 P M EDT , Augus t

27 , 2010 , deadline . Cove r pag e contents . Th e cover pag e fo r all application s shoul d bea r th e titl e "Proposa

l Under the Smal l Communit

y Ai r Servic e Development

Program , Docke t

DOT-OST-2010-0124 " an d shoul d include : (1 ) th e nam e o

f th e communit

y o r consortiu mo

f communitie s applyin g fo

r th e grant ; (2 ) th e lega

l sponso r an d it s Dun an d Bradstree t (D&B ) Dat aUniversal Numberin g Syste m (DUNS ) number , includin g + 4 ; and (3 ) th e 2-digi t

Congressional distric t

cod e applicabl e t o th e sponsorin g organizatio n and , i f a consortium , t o eac h participatin g community . Confidentia l treatmen t

o f information . Applicant s wil l b e abl e to provid e certai n informatio n relevan t to thei r proposal s o n aconfidentia l basis . Under

th e Department' s Freedo mo f Informatio n Ac t

regulation s (4 9 C.F.R . § 7.17) , suc h informatio n i s limite d to commercia l or financia l informatio n that , i

f disclosed , woul d either

likel y caus e substantial har mt o th e competitiv e positio n of

abusines s or

enterpris e o r

mak e i t more difficult

fo r th e Federa

l Governmen t

t o obtai n simila

r informatio n in th e future . Applicant s seekin g confidentia l treatment

of aportio n o f

thei r application s mus t

segregate th e confidentia

l materia l in aseale d envelop e marke d "Confidential Submissio n o f X (th e applicant ) in Docke t DOT-OST-2010-0124, " and includ e wit h tha t material areques t

in th e for mof a motio n seekin g confidentia l treatmen t

o f th e material under

1 4 § CF R302.1 2 (Rul e 12

) of th e Department' s regulations . Th e applican t shoul d submi t

a n original and tw o copie s of it s motio n and a n original an

d tw o copie s of

th e confidentia

l material i n th e seale d envelope . Th e confidentia

l materia l shoul d no t

b e include d wit

h th e original o f

th e applicant' s proposal tha t i s submitte d vi awww.grants.gov . Th e applicant' s original submission , however , shoul d indicate clearl y where th e confidential materia l woul d hav e bee n inserted . I f a n applican t

invoke s Rul e 12 , th e confidentia

l portio n o

f it s filin g wil l b e treate d a s confidential pendin g afinal determination . All confidential material mus t b e receive d b y Augus t

27 , 2010 , and delivere d to th e Offic e of

Aviatio n Analysis , 8'*

" Floor , Roo mW86-310 , 120 0 New Jerse y Ave. , SE , Washington , D C 20590 . Type s o f Project s an d Applicatio n Conten t Th e statute i s ver

y genera l abou t th e type s of

project s tha

t ca n b e authorize d s o tha

t communitie s ar e provide d flexibility i n addressin g thei r particula r ai r servic e and airfar

e issues . Becaus e circumstance s ma

y diffe r amon g communities , applicant s hav e som e latitud e i n identifyin g thei r ow n objective s an

d developin g strategie s fo

r accomplishin g them . On e objectiv e of

th e Smal l Communit

y Progra mi s to hel p communitie s secure enhancement s tha t wil l b e responsiv e t o thei r ai r transportation/ai r

far e need s o n along-ter

mbasi s afte

r th e financia l suppor t o f th e gran t ha s ended . There ar

e many way s tha

t acommunit

y migh t enhanc e it s current ai r servic e o r attrac t new service , suc h as :- 8 -

• Promotin g awarenes s amon g resident s o f locall y availabl e service ;

• Attractin g ane w carrie r throug h revenu e guarantee s o r operatin g cos t

offsets ;

• Attractin g ne w form s o f service , suc h a s on-deman d ai r tax i service ;

• Offerin g a n incumben t cartie r financia l o r

othe r incentive s t o lowe r

it s fares , increas e it s frequencies , ad d ne w routes , o r deplo y mor e suitabl e aircraft , includin g upgradin g it s equipmen t

fro mturboprop s t o regiona l jets ;

• Combinin g traffi c suppor t fro msurroundin g communitie s wit h regionalize d servic e throug h on e airport ; o r

• Providin g loca l groun d transportatio n servic e t o improv e acces s t o ai r servic e t o th e communit y an d th e surroundin g area. ^ Communitie s ar e encourage d t o b e iimovativ e an d t o conside r awid e rang e o f

initiative s an d ai r transportatio n service s i n developin g thei r proposals , suc h a s intermoda l o r regiona l solutions . A t th e sam e time , proposal s mus t no t b e general , vague , o r

unsupported . Th e mor e highl y define d an d focuse d th e proposal , th e mor e competitiv e i t wil l be , particularl y i n ligh t o f th e priorit y consideratio n afforde d b y th e statut e t o thos e applicant s tha t ca n us e th e fund s i n atimel y manner . 4 9 U.S.C . §41743(c)(5)(E) . Ther e i s n o se t

forma t tha t mus t b e use d i n submittin g gran t proposals . A t

aminimum , however , aproposa l mus t

provid e th e followin g information :

• A descriptio n o f

th e community' s existin g ai r service , includin g th e carrier(s ) providin g service , servic e frequency , nonsto p destination s offered , fares , an d equipmen t types .

• A synopsi s o f

th e community' s historica l service , includin g destinations , traffi c levels , servic e providers , an d an y extenuatin g factor s tha t migh t hav e affecte d traffi c i n th e pas t o r tha t ca n b e expecte d t o influenc e servic e need s i n th e nea r t o intermediat e term .

• A descriptio n o f

th e community' s ai r

servic e developmen t

effort s ove r

th e pas t fiv e year s an d th e result s o f

thos e efforts . Man y communitie s hav e bee n activ e o n a n on-goin g basi s fo r man y year s i n ai r

servic e developmen t

efforts , whil e other s ar e jus t beginning . T o th e exten t tha t acommunit y ha s previousl y engage d i n othe r ai r servic e initiatives , includin g throug h public/privat e partnerships , i t shoul d describ e thos e effort s an d thei r result s i n it s gran t

* Thes e example s ar

e illustrativ e only an d ar

e no t mean t a s alis t of project s favore d by th e Department . Intereste d communitie s ca n vie w actual proposal s submitte d i n prio r years . G o to http://www.regulations.go v and , under "Search, " ente r

on e o f th e followin g dependin g o n th e desire d filin g year : DOT-OST-2002-11590 , DOT-OST-2003-15065 , DOT-OST-2004-17343 , DOT-OST-2005

- 20127 , DOT-OST-2006-23671 ; DOT-OST-2007-2737 0 an d DOT-OST-2008-0100 , DOT-OST-2009

- 014 9 fo r proposal s filed i

n 2002 , 2003 , 2004 , 2005 , 2006 , 2007 , 200 8 an d 2009 , respectively .- 9

-

proposal . Th e descriptio n shoul d includ e marketin g an d promotiona l effort s o f airpor t service s a s wel l a s effort s t o recrui t additiona l o r

improve d ai r

servic e an d airfar e initiatives .

• A descriptio n o f

th e community' s ai r

servic e need s o r

deficiencies . A communit y shoul d submi t an y informatio n abou t

(1 ) majo r

origin/destinatio n market s tha t ar e no t no w serve d o r ar e no t serve d adequately , an d (2 ) far e level s tha t th e communit y deem s relevan t t o consideratio n o f

it s gran t request , includin g marke t analyse s o r

studie s demonstratin g a n understandin g o f

loca l ai r servic e needs .

• A strategi c pla n fo r

meetin g thos e need s unde r th e Smal l Communit y Program , includin g th e community' s specifi c projec t goal(s ) an d detaile d pla n fo r attainin g suc h goal(s) . Plan s should : ^ Clearl y identif

y th e targe t

audienc e o f

eac h componen t

o f th e propose d transportatio n initiative , includin g al l advertisin g an d promotiona l efforts .

• ^ Se t forth arealisti c timetabl e fo r implementatio n o f

th e gran t projec t includin g atimelin e chart . Becaus e th e statut e include s timel y us e o f th e gran t fund s a s apriorit y consideration , acommunit y mus t hav e awell-develope d projec t pla n an d adetaile d timetabl e fo r

implementin g tha t

plan . I n establishin g th e timetable , however , th e communit y shoul d b e realisti c abou t it s abilit y t o mee t

it s projec t

deadlines. ^

^ Fo r proposal s involvin g ne w o r improve d service , explai n ho w th e servic e wil l becom e self-sufficient . Unde r

th e statute , acommunit y caimo t see k gran t fundin g i n subsequen t year s i n suppor t

o f th e sam e project . Moreover , i n developin g aproposal , i t i s importan t tha t acommunit y seriousl y conside r th e scal e o f

it s propose d projec t

an d th e timetabl e fo r achievin g th e state d goals . T o th e exten t tha t apropose d projec t

i s dependen t

upo n o r relevan t t o th e completio n o f

othe r federall y funde d capita l improvemen t projects , th e communit y shoul d provid e adescriptio n of , an d th e constructio n time-lin e for , thos e projects , keepin g i n min d th e statutor y requiremen t t o us e Smal l Communit y Progra m fundin g i n atimel y manner . ^ Full y an d clearl y outlin e th e goal s an d objective s sough t t o b e achieved ; e.g. , "t o broade n th e awarenes s b y resident s i n th e Tri-Count y are ao f th e variou s service s provide d b y passenge r

carrier s a t

th e Tri-Count y airport, " o r "t o obtai n ne w an d affordabl e servic e t o a hu b airpor t

i n adirectio n wher e ther e i s n o suc h service. " Whe n a n applicatio n i s selected , thes e goal s an d objective s wil l b e incorporate d int o th e gran t agreemen t

an d defin e it s basi c projec t

scope . Onc e a n agreemen t i s signed , i f

circumstance s chang e an d a n amendmen t

i s sough t

t o allo w fo r

differen t activitie s o r

adifferen t

approach , th e Departmen t

wil l loo k

t o whethe r

th e chang e bein g sough t i s consisten t

wit h thos e

^ Th e projecte d timetabl e will b e a n integra l par t o f th e grant agreement s betwee n th e selecte d communitie s and th e Department . Therefore , ther e i s n o advantag e t o acommunit y i n proposin g a

n aggressiv e timetabl e tha

t canno t b e met , an d ther e ma

y b e disadvantage s i

f th e communit

y find s tha

t i t canno t mee t it s timetabl e or

i f it s timelin e i s deeme d unrealistic . Communitie s shoul d carefully conside r al l factor s affectin g implementatio n o f thei r project s an d develo p realisti c timeframe s fo r achievin g thos e objectives .•

•

• 10

- fundamenta

l projec t goal s and objectives . Propose d change s tha t woul d alter

thos e fundamenta

l goal s an d objective s canno t

b e authorized , becaus e doin g s o woul d undermin e the competitiv e nature of th e selectio n process . Applicant s ar e als o encourage d t o includ e in thei r proposal s alternativ e o r

back-up strategie s fo

r achievin g thei r desire d goal s an

d objectives . B y incorporatin g suc h informatio n into th e grant agreement , desire d change s ma y b e accommodated . ^ I f di e applican t

receive d aSmal l Communit y Programgran t

i n th e past , explai n ho w it s propose d projec t

differ s fro

mit s earlie r

on e b y comparin g an d contrastin g projec t goals , objective s an

d method s of

achievin g them . A descriptio n o f

an y public-privat e partnershi p tha t wil l participat e i n th e project . Ful l communit y involvement

i s akey aspec t

o f th e Smal l Communit

y Program . Th e statute give s apriorit y t o thos e communitie s tha t already hav e established , o r wil l establish , apublic

private partnershi p t o facilitate ai r servic e to th e public . Th e proposal shoul d full y describ e th e public-privat e partnershi p tha t wil l participat e i

n th e community' s proposal and ho w th e partnershi p wil l activel y participate in th e implementatio n of th e propose d project . I

n addition , applicant s shoul d identif y eac h member

of th e partnership , th e rol e tha t eac h will play , an d th e specifi c responsibilitie s o f eac h membe

r in projec t implementation . I

f th e applicatio n doe s no t

includ e specifi c informatio n o n th e partnershi p participatio n i n th e project , th e Department

wil l no t b e abl e to evaluat e ho w wel l acommunit y ha s me t thi s consideration , and th e applican t wil l no t b e deeme d t o hav e me

t thi s priorit

y consideratio n i n th e Department' s evaluatio n of th e community' s proposal . A detaile d descriptio n o

f th e fundin g necessary fo

r implementatio n of

th e community' s project , includin g th e federa l an d non-federal contributions . Proposal s shoul d clearl y identif y th e leve l o f

federa l fundin g sought . The y shoul d als o clearl y identif y th e community' s cas h contribution s t o th e propose d project , "in-kind " contribution s fro mth e airport , and "in-kind " contribution s fromth e community . Cas h contribution s fro mairpor t revenue s shoul d b e identifie d separatel y fromcas h contribution s fro mother communit

y sources . Similarly , cas h contribution s firomth e State and/o r loca l government

shoul d b e separatel y identifie d an

d described . Applican t communitie s shoul d b e aware that , i f awarde d agrant , th e Departmen t wil l no t reimburs e th e communit

y fo r pre-award expense s suc h a s th e cos t of preparin g th e grant applicatio n or

fo r an y expense s incurre d prio r

t o th e communit

y executin g agrant

agreement wit h th e Department . I

n addition , te n percent

of th e gran t fund s wil l b e withhel d unti l th e Department

receive s th e fina

l repor t o f th e grant project . Se e "Award Administratio n Information, " below . A n explanatio n of

ho w th e communit

y wil l ensure tha

t it s ow n funding contributio n i s spent in th e manne

r proposed .

• Description s o

f ho w th e communit

y wil l monito r

th e progres s of

th e gran t projec t and th e identit y of critical milestone s to b e me t durin g th e lif

e of th e grant , includin g th e nee d t o modif y or discontinu e fundin g i

f identifie d milestone s canno t b e achieved . Thi s i s a

n1 1

important component

o f the community' s proposa l and serve s to demonstrat e th e thoroughnes s of

th e community' s plannin g of th e propose d grant

project . A descriptio n of

ho w th e communit

y plan s to continu e wit

h th e projec t

i f i t i s no t self

sustainin g afte

r th e gran t awar d expires . A particula

r goa l of th e Smal l Communit

y Progra m i s t o provid e long-term , self-sustainin g improvement s t o ai r servic e a t smal l communities . A communit y canno t seek furthe r grant funding i n suppor t of th e same project . 4 9 U.S.C . § 41743(c)(4) . I

t i s possibl e tha

t ne w o r improve d servic e a

t acommunit

y wil l b e wel l o n it s wa y to becomin g self-sustaining , but no t hav e reache d tha

t goal befor

e th e grant

expires . Similarly , i

t i s possibl e tha

t extensiv e marketin g and promotional effort s ma y b e i n process , but no t hav e bee n complete d a

t th e en d o f

th e grant perio d an d wil l require continue d support.' 0 Therefore , i n developin g it s proposal , th e communit y shoul d carefull y consider an d describ e in detai l it s plan s fo r providin g continue d financia l suppor t fo r th e projec t

afte r th e grant fundin g i s n o longer

available . Thi s aspec t

of th e applicatio n reflect s o n th e community' s commitmen t t o th e grant

projec t an d i s a n important

componen t

t o th e Department' s consideratio n o f th e community' s proposal fo r selectio n fo

r agrant award . Designatio n o

f alega l sponso r responsibl e fo

r administerin g th e program . Th e lega l sponso r of th e grant projec t mus t b e agovernment

entity . I f th e applican t

i s apublic-privat e partnership , apubli c government member of th e organizatio n mus t

b e identifie d a s th e community' s sponso r

t o receiv e programreimbursements . I n thi s regard , communitie s ca n designate onl y asingl e government entit y a s th e lega

l sponsor , eve n i

f applyin g a s a consortiu mtha

t consist s o f

tw o o r more local government

entities . Privat e organization s canno t b e designate d a s th e lega

l sponso r o f agran t under th e Smal l Communit

y Program.' ' Ai r Servic e Developmen t

Zon e Designatio n Th e statute authorizin g th e Smal l Communit y programals o provide s tha t th e Department

wil l designate on e of

th e gran t recipient s in th e programa s a n Ai r Servic e Developmen t

Zon e (ASDZ) . A current

grant recipien t - wit h it s grant awar d perio d extendin g into FY201 1 - remain s activ e a s th e ASD Z designee . A s aresult , a t thi s tim e th e Department

i s no t solicitin g application s fo

r selectio n a s a

n ASD Z designee . •

' 0 Projec t implementatio

n costs ar e reimbursabl

e fro mgran t fund s onl y fo r service s o r propert y delivere d durin g th e gran t term . ' ' Th e communit

y has th e responsibilit

y t o ensur e tha t th e recipien t o f an y fundin g has th e lega l authorit y unde r Stat e an d loca l law s t o carr y ou t al l aspect s o f th e grant .12

-

APPLICATIO N REVIE W INFORMATIO N Th e Department

wil l carefull y revie w eac h proposal , an d th e staf f ma y contac t applicant s i

f clarificatio n i s needed . Th e gran t award s wil l b e mad e a s quickl y a s possibl e s o tha t communitie s awarde d grant s ca n complet e th e grant

agreement

proces s and procee d t

o implement

thei r plans . Pendin g unforesee n circumstances , th e grant selectio n proces s shoul d b e complete d b y December

2010 . Give n th e competitiv e nature of th e gran t process , th e Department

wil l no t mee t wit h gran t applicant s wit

h respec t to thei r gran t proposals . Th e Department' s selectio n of

communitie s fo

r grant award s wil l b e base d o n th e communities ' writte n submissions . Priorit y factor s considered . Th e la w direct s th e Departmen t

t o giv e priority consideratio n t o thos e communitie s or

consorti awhere : ' ^

• air fare s are higher

than th e national averag e air fare s fo r all communities ;

• th e communit

y or consortiu mwil l provid e aportio n o f th e cos t of th e activit

y fro mloca l source s other

than airpor

t revenu e sources ;

• th e communit

y o r consortiu mha s establishe d or wil l establis h apublic-privat e partnershi p to facilitate ai r

carrier servic e t o th e public ;

• th e assistanc e wil l provid e materia l benefit s to abroa d segment of th e travelin g public , includin g business , educational institutions , and other enterprises , whos e acces s t o th e nationa l air transportatio n syste mi s limited ; an d

• th e assistanc e wil l b e use d in atimel y manner . Additiona l factor s considered . Application s wil l b e evaluate d agains t th e priorit

y consideration s liste d above . Our experienc e ha s bee n tha

t more application s ar e receive d tha n ca n b e funded under

th e Smal l Communit

y Program . Consequently , consisten t wit h th e criteri a state d above , th e selectio n proces s wil l take int o consideratio n suc h additional factor s as :

• th e geographi c locatio n of eac h applicant , includin g th e community' s proximit y t o larger center s o f air servic e an d low-far

e servic e alternatives ;

• th e propose d federa

l gran t amount requeste d compare d wit

h th e loca l share offered ;

• whethe

r th e applicant

communit

y ha s previousl y receive d agrant award under

thi s progra

m and , i f so , whether

it s applicatio n include s a

n explanatio n of

ho w th e community' s propose d projec t differ s fro

mit s previousl y funded project ;

• th e community' s demonstrate d commitment t o and participatio n i

n th e propose d grant project ;

' 2 4 9 U.S.C . 4174 3 (c)(5) .1 3

• the relativ e siz e o f

eac h applican t

community ;

• the community' s existin g leve l of air servic e and whether

tha t servic e ha s been increasin g o r decreasing ;

• whether

th e community' s proposal , i f successfull y implemented , coul d serv e a s aworkin g model fo r othe r communities ;

• curren t

demographi c indicator s fo r th e community , suc h a s population , income and busines s activity ;

• th e grant

amount requeste d compare d wit

h total fund s availabl e fo

r all communities ;

• whethe

r th e communit

y ha s arealisti c pla

n t o us e th e fund s i

n atimel y manner ;

• th e uniquenes s of

a n applicant' s claime d problem s an d whether th e propose d projec t addresse s thos e problems ;

• th e exten t

t o whic h th e applicant' s propose d solution(s ) t o solvin g th e problem(s ) i s new o r innovative ; an

d

• whether

th e community' s proximit y t o a n existin g grant

recipien t coul d impac t

it s proposal . Ful l communit

y participatio n i s ake y goa l o f thi s progra

ma s demonstrate d b y th e statute' s focu s o n loca l contribution s an d activ e participatio n i n th e project . Therefore , application s tha t demonstrate broad communit y suppor t wil l b e more attractive . Fo r example , communitie s providin g proportionatel y highe r level s of cas h contribution s fro

mothe r tha n airpor t revenue s wil l hav e more attractiv e proposals . Communitie s tha t provid e multipl e level s of contribution s (state , local , airport , cas h an d in-kin d contributions ) als o wil l hav e more attractiv e proposals . Similarly , communitie s tha t demonstrat e participatio n in th e development and executio n o

f th e propose d ai r

servic e projec t

wil l enhanc e th e attractivenes s of thei r proposals . I

n thi s regard , th e Department

welcome s letter s o f

inten t fro mairline s o n behal f

of communit

y proposal s tha

t ar e specificall y intende d t o enlis t new o r expande d ai r

carrie r presence . Suc h letter s wil l b e accorde d greater

weight whe n authorize d b y airlin e plannin g departments . Proposal s tha

t offe r innovativ e solution s to th e transportatio n issue s facin g th e communit y wil l b e mor e attractive . Smal l communitie s hav e face d man y problem s retainin g an

d improvin g thei r air service s an

d i n copin g wit

h ai r fare s tha t are higher

tha n typical fo

r larger communities . Therefore , proposal s tha

t offe r new , creativ e approache s t o addressin g thes e problems , to th e extent tha t the y ar e reasonable , wil l hav e thei r attractivenes s enhanced . Proposal s tha t provid e a well-define d plan , areasonabl e timetabl e fo r us e of th e grant funds , an d apla n fo r continuatio n and/o r monitorin g of

th e projec t

afte r th e grant expire s als o wil l hav e greater attractiveness .1 4

AWAR D ADMINISTRATIO N INFORMATIO N Th e Department

wil l announc e it s grant

selection s in aselectio n order , whic h wil l b e serve d o n eac h grant recipient , all othe r

applicants , and al l partie s serve d wit h thi s solicitatio n order . Th e selectio n order

wil l als o b e poste d in th e Docket a t www.regulations.go v an

d o n di e Department' s webpage . Gran t agreement . Communitie s awarde d grant s are require d to execute agrant agreement

wit h th e Department

befor e the y begi n to spen d fund s unde r th e grant award . Grant

fund s wil l b e provide d o

n areimbursabl e basi s only , wit h reimbursement s made onl y fo r expense s incurre d and bille d durin g th e perio d tha t th e grant agreement

i s in effect

an d a t th e appropriat e percentag e rate , whic h i s determine d by : (SCASD P Grant Amount ) -

r (SCASD P Grant

Amount + Loca l Cas h Contributio n + State Cas h Contribution , i f applicable) . Applicant s shoul d no t assum e the y hav e receive d agrant , no r shoul d the y obligat e o r

spen d loca

l fund s prio r

to receivin g and full

y executin g agrant

agreement

wit h th e Department . Expenditure s mad e prio r t o th e executio n o

f agran t agreement , includin g cost s associate d wit h preparatio n o f

th e gran t application , wil l no t

b e reimbursed . Moreover , ther e are numerou s assurance s tha t gran t recipient s mus t

sig n and hono r

when federa

l fund s ar e awarded . Al l communitie s receivin g a grant under th e Smal l Communit

y Progra mwil l b e require d t o accep t th e responsibilitie s o f

thes e assurance s and to execut e th e assurance s when the y execut e thei r gran t agreements . Copie s o

f th e applicabl e assurance s are availabl e fo r revie w o n th e Department' s webpag e a t http://ostpxweb.dot.gov/aviatior\/X-50%20Role_files/smallcommunity.ht m(clic k o n "SCASD P Grant Assurances") . Grante e reports . Th e gran t agreement

betwee n th e Departmen t

an d eac h selecte d communit y wil l require th e submissio n o f quarterl y report s o n th e progres s th e communit y ha s mad e durin g th e previou s quarter

in implementin g it s grant

project . In addition , th e grant agreemen t

wil l require th e submission , o n aquarterl y o r other time-specifi c basis , o

f other material s relevan t

to th e grant project , suc h a s copie s of

advertisin g and promotional material and copie s of contract s wit h consultant s and servic e providers . I n addition , eac h communit y wil l b e require d to submi t a final repor

t o n it s projec t

t o th e Department , and 1 0 percen t of th e grant fund s wil l no t

b e reimburse d to th e conmiunit y unti l suc h fma

l repor t i s received . Cos t reimbursement . Communitie s wil l b e permitte d t o seek reimbursement

of projec t implementatio n cost s o n aregula r basis . Th e frequenc y of

suc h request s wil l b e a

t th e community' s discretion . In thi s regard , th e Department wil l provid e th e grant

recipien t communitie s wit

h detail s an d procedure s fo r securin g reimbursement s electronically . Gran t amendments . A grante e ma y wis h to amend it s agreement wit h th e Department

in th e even t of achang e in circumstance s afte r th e date th e agreemen t

i s executed . Typically , amendment s involv e a

n extensio n to th e time perio d fo r completin g th e grant

or achang e i

n th e type s o f activitie s audiorize d fo

r reimbursement

under th e goal s an

d objective s ("projec t

scope" ) o f th e grant agreement . Grantee s ar e cautioned , however , tha t th e Departmen t

canno t authoriz e amendment s tha t ar e incompatibl e with th e scop e o f th e agreement . Fo r

example , agrant awarde d solel y fo

r th e purpos e o f

developin g a

n airpor t marketin g pla

n canno t b e amende d t o permi t

subsidizatio n o

f a n air carrier' s startu p costs , o r

agrant awarde d solel y fo

r th e1 5

purpos e of

attractin g low-fare servic e canno t b e amende d to permi t

i t t o attrac t servic e fro

ma legac y carrier , sinc e th e latter , in eac h example , wa s never contemplate d b y th e original agreement . Grantee s ar

e als o advise d tha

t th e Department

wil l no t exten d th e expiratio n date o f a n agreement simpl y t o allo w more tim e fo r acommunit

y t o solici t

ai r carrier s fo

r ne w air service . Man y grant s hav e bee n awarde d fo r th e purpos e of

subsidizin g new or

additional air

servic e fo r a smal l community , wit

h th e goa l o f tha t servic e becomin g self-sustainin g b y th e en d of th e subsidy period . In virtuall y al l cases , th e communit y seekin g th e grant

fund s receive d expression s o

f interes t fromon e or

more air carriers . I

n some instances , thes e expression s o f interes t faile d to materializ e and th e communit y wa s lef t withou t an y immediate prospects , a

t whic h tim e i t

aske d fo r agran t extensio n t o allo w more tim e t o pursu e othe r carriers . Becaus e th e Department

i s charge d b y la

w t o consider

timel y us e of

fund s whe n selectin g gran t recipients , th e Departmen t

wil l gran t

a n extensio n onl y whe n th e communit y ca n provid e stron g evidenc e o f afir mcommitment

o n th e par

t o f a n ai r carrie r t o delive r th e desire d service . T o avoi d misunderstandings , grantee s contemplatin g amendment s t o thei r agreement s are urge d to discus s thei r

situation s wit

h th e Smal l Communit

y Programstaf

f befor e requestin g aforma

l amendment . Thi s order i s issue d unde r

authorit y delegate d in 4 9 CF

R§ I.56a(f) .-16

-

ACCORDINGLY , 1 . Conmiunit y proposal s fo r fundin g unde r

th e Smal l Communit y Ai r Servic e Developmen t Progra mshoul d b e submitte d viahttp://wmv.grants.go v a s a n attachmen t

t o th e SF42 4 n o late r tha n Augus t

27 , 2010 ; an d 2 . Thi s orde r

wil l b e publishe d i n th e Federa l Registe r an d als o wil l b e serve d o n th e Conferenc e o f Mayors , th e Nationa l Leagu e o f Cities , th e Nationa l Governor s Association , th e Nationa l Associatio n o f

Stat e Aviatio n Official s (NASAO) , Count y Executive s o f America , th e America n Associatio n o f

Airport Executive s (AAAE) , an d th e Airport s Counci l International-North Americ a(ACI) , an d poste d o n http://www.grants.gov . By :

Susa n L . Kurlan d Assistan t Secretary for

Aviatio n an d Internationa l Affair s (SEAL ) A

n electroni c versio n o f

thi s documen t

i s availabl e o n th e Worl d Wid

e We b a t http:/www.regulations.go vAPPENDIX A Pag e 1 SMAL L COMMUNIT Y AI RSERVIC E DEVELOPMEN T PROGRA M Unite d State s Cod e Annotate d Titl e 49 . Transportatio n Subtitl e VII . Aviatio n Program s Par t A . Ai r Commerc e and Safet

y Subpar t II . Economi c Regulatio n Chapter 417 . Operation s of

Carrier s Subchapter

II . Smal l Communit

y Air Servic e

- • § 41743 . Airport s no t

receivin g sufficien t

servic e (a ) Smal l communit y ai r

servic e developmen t

program.~Th e Secretar

y of Transportatio n shal l establis h aprogra mtha t meet s th e requirement s o f thi s sectio n fo

r improvin g air

carrier servic e to airport s no t

receivin g sufficient

air carrie r service . (b ) Applicatio n required.—I n orde r t o participate i

n th e progra

mestablishe d under subsectio n (a) , acommunit y or consortiu mo

f communitie s shal l submi t a n applicatio n to th e Secretar

y i n suc h form , a

t suc h time , and containin g suc h informatio n a s th e Secretar y ma y require , including

— (1 ) a n assessment

o f th e nee d of

th e communit

y o r consortiu mfo

r access , or

improve d access , to th e nationa

l ai r transportatio n system ; and (2 ) a n analysi s of

th e applicatio n of

th e criteri ain subsectio n (c ) t o tha t conrununit

y o r consortium . (c ) Criteri afo r

participation.-I n selectin g communities , o r consorti aof

communities , fo r participatio n in th e programestablishe d under subsectio n (a) , th e Secretar y shal l apply th e followin g criteria : (1 ) Size.-Fo r

calenda r yea r 1997 , th e airpor

t servin g th e communit

y or consortiu m wa s no t larger tha n asmal l hub airport , and

-APPENDI X A Pag e 2 (A ) had insufficient

ai r carrie r service ; o r (B ) ha d unreasonabl y hig h air

fares . (2 ) Characteristics.-Th e airpor t present s characteristics , suc h a s geographi c diversit y o r uniqu e circumstances , tha t will demonstrate th e nee d for , an d feasibilit

y of , th e progra

mestablishe d under

subsectio n (a) . (3 ) Stat e Iimit.-No t

more tha n 4 communitie s o r

consorti ao

f communities , o

r a combinatio n thereof

, fro mth e same State ma

y b e selecte d t o participat e i n th e progra mi n any fisca

l year . (4 ) Overal l limit.-N o mor e tha n 4 0 communitie s or

consorti aof

communities , or

a combinatio n thereof

, ma y b e selecte d to participate in th e programin eac h yea r fo r whic h ftmd s are appropriate d fo r th e program . N o community , consorti ao f communities , no r

combinatio n thereo f

ma y participate i

n th e progra min suppor

t of th e same projec t

mor e tha n once , but

an y community , consorti aof

communities , o r

combinatio n thereo f

ma y apply , subsequen t

to suc h participation , t o participat e in th e programin suppor t of adifferen t project . (5 ) Priorities."Th e Secretar y shal l giv e priorit

y t o communitie s o

r consorti aof communitie s where

— (A ) air fare s are higher

tha n th e averag e ai r

fare s fo r al l communities ; (B ) th e communit

y o r consortiu mwil l provid e aportio n of th e cos t of th e activit

y t o b e assiste d under

th e programfro

mlocal source s othe r

tha n airpor t revenues ; (C ) th e communit

y o r consortiu mha s established , o r wil l establish , apublic

private partnershi p t o facilitate air carrie r servic e to th e public ; (D ) th e assistanc e wil l provid e material benefit s t o abroa d segmen t o f th e travelin g public , includin g business , educational institutions , and other enterprises , whos e acces s to th e national air transportatio n syste mi s limited ; an d (E ) th e assistanc e wil l b e use d i n atimel y fashion .APPENDU C A Pag e 3 (d ) Type s o f

assistance.-Th e Secretar y ma y us e amount s mad e availabl e under thi s section

- (1 ) t o provid e assistanc e to a n air carrie r to subsidiz e servic e t o an d froma n underserve d airpor

t fo r aperio d no t

to excee d 3 years ; (2 ) to provid e assistanc e to a n underserve d airpor

t to obtai n servic e to and fro mth e underserve d airport ; an

d (3 ) to provid e assistanc e to a n underserve d airpor

t to implement

suc h othe r

measure s a s th e Secretary , in consultatio n wit h suc h airport , consider s appropriat e to improv e air servic e bot

h in term s of

th e cos t o f suc h servic e t o consumer s an d th e availabilit y of suc h service , includin g improvin g ai r servic e throug h marketin g and promotio n o f ai r servic e and enhance d utilizatio n of airpor t facilities . (e ) Authorit y t o mak e agreements.- - (1 ) I n general.—Th e Secretar y ma y mak e agreement s t o provid e assistanc e under thi s section . (2 ) Authorizatio n o f

appropriations.-Ther e i s authorize d to b e appropriate d t o th e Secretar y $20,000,00 0 fo

r fiscal yea r 2001 , $27,500,00 0 fo

r eac h of fisca l year s 200 2 and 2003 , and $35,000,00 0 fo r eac h of fiscal year s 200 4 throug h 200 8 t o carr y out thi s section . Suc h sum s shal l remai n availabl e unti l expended . (f ) Additiona l action.-Unde r th e progra

mestablishe d under

subsectio n (a) , th e Secretar y shal l wor

k wit h air carrier s providin g servic e t o participatin g communitie s and majo r ai r carrier s (a s define d i

n sectio n 41716(a)(2) ) servin g larg e hub airport s to facilitate joint-far e arrangement s consisten t wit h normal industr

y practice . (g ) Designatio n o f

responsibl e official.-Th e Secretar y shal l designat e a

n employe e o

f th e Department

of Transportation

— (1 ) t o functio n a s afacilitato r betwee n smal l communitie s and ai r carriers ; (2 ) to carr y ou t thi s section ;APPENDD C A Pag e 4 (3 ) to ensure tha

t th e Burea u of Transportatio n Statistic s collect s dat ao n passenger informatio n t o asses s th e servic e need s of smal l communities ; (4 ) t o wor k wit h an d coordinate effort s wit h othe r Federal , State , and loca

l agencie s to increas e th e viabilit

y o f servic e t o smal l communitie s and th e creatio n o f aviatio n development

zones ; an d (5 ) t o provid e polic y recommendation s to th e Secretar y and Congres s tha

t wil l ensure tha t smal l communitie s hav e acces s to quality , affordabl e ai r transportatio n services . (h ) Ai r Servic e Developmen t

Zone.-Th e Secretar

y shal l designate a

n airpor t i n th e progra ma s a n Ai r Servic e Development

Zon e an d wor

k wit h th e communit

y or consortiu mo n mean s to attrac t busines s to th e are asurroundin g th e airport , to develo p lan d us e option s fo

r th e area , and provid e data , workin g wit h th e Department

of Commerc e an d othe r

agencies .APPENDI X B Pag e 1 SMAL L COMMUNIT Y AI RSERVIC E DEVELOPMEN T PROGRA M

DOCKE T DOT-OST-2010-012 4 SUMMAR Y INFORMATIO N All applicant s mus t

submi t thi s informatio n wit

h thei r proposal , alon g widi acomplete d for mSF42 4 o n http://www . grants , gov . A . APPLICAN T INFORMATION : (CHEC K AL L THA T APPLY ) D No t aConsortiu mD Interstat e Consortiu mD Intrastat e Consortiu m D Communit y no w receive s EA S subsid y D Communit y (o r

Consortiu mmember ) previousl y receive d aSmal l Communit y Gran t I f previou s recipient : Dat e of grant : Expiratio n dat e o f

grant : B . PUBLIC/PRIVAT E PARTNERSHIPS : (LIS T ORGANIZATIO N NAMES ) Publi c Privat e 1 . L

__ 

### 3 ^ J .

__

PROJEC T PROPOSAL : (CHEC K AL L THA T APPLY )

n Marketin g n Personne l n Trave l Ban

k • Upgrade Aircraf t n Increas e Frequenc y n Servic e Restoratio n D New Route n Lo w Fare Servic e D SubsidyAPPENDI X B Pag e 2 n Surfac e Transportatio n D Regiona l Servic e D Othe r (specify ) n Revenu e Guarante e D Launc h Ne w Carrie r D Star t U p Cos t Offse t D Firs t

Servic e n Stud y n Secure Additional Carrie r D . EXISTIN G LANDIN G AID S A T LOCA L AIRPORT : n Ful l IL S D Outer/Middl e Marker D Publishe d Instrument Approac h n Localizer

D Othe r

(specify )

E . PROJEC T COST : 1 . Federal amount

requested : 2 . State cas h financial contribution : 3 . Loca l cas h financia

l contribution.. . 3a . Airpor t cas h funds : 3b . Non-airpor

t cas h funds : 3c . Total loca

l cas h fund s (3a . + 3b.) : 4 . TOTA L CAS H FUNDIN G (1 . + 2 . + 3c.) : 5 . Loca l fund s contribute d fro

malready-existin g program s or

project s include d in lin e 3c . amount : 6 . Loca l fund s contribute d fro

mne w commitment s o r new resource s include d in lin e 3c . amount : 7 . Airpor t In-Kin d contribution : (amount & description ) 8 . Othe r In-Kin d contribution : (amount & description ) 9 . TOTA L IN-KIND CONTRIBUTIO N (7 . + 8.) : 10 . TOTA L PROJEC T COS T (4 . + 9.) :APPENDI X B Pag e 3 F . ENPLANEMENTS : 200 0 200 4 200 8 . 200 1 200 5 2009 _ 200 2 200 6 200 4 200 7 G . I s THI S APPLICATIO N SUBJEC T T O REVIE W B Y STAT E UNDE REXECUTIV E ORDE R1237 2 PROCESS ? Q a . Thi s applicatio n wa s mad e availabl e t o th e Stat e under

th e Executiv e Order

1237 2 Proces s fo

r revie w o n (date ) . • b . Progra

mi s subjec t

t o E.O . 12372 , bu t

ha s no t bee n selecte d b y th e Stat e fo r review . • c . Progra

mi s no t covere d b y E.O . 12372 . H . I S TH E APPLICAN T DELINQUEN T O N AN Y FEDERA L DEBT ? (I F "YES" , PROVID E EXPLANATION ) n N o D Ye s (explain )