Byron K. Huffman Acting Director Office ofAirport Compliance and Management Analysis Federal Aviation Administration 800 Independence Avenue, SW Washington, D

.C. 20591
Dear Mr. Huffman: EDDIE BAZA CALVO Governor RAY TENORIO Lieutenant Governor

The Office of the Governor of Guam is in receipt of your letter dated November 24, 2015 , regarding the Federal Aviation Administration's ("FAA") November 7, 2014 Policy and Procedures Concerning the Use of Airport Revenue; Proceeds from Taxes on Aviation Fuel ("Amendment"), which clarifies the FAA's February 16, 1999 Policy and Procedures Concerning the Use ofAirport Revenue ("Revenue Use Policy"). Your letter refers to State and local governments' obligation to submit an Action Plan by December 8, 2015 to the FAA outlining a strategic plan to come into compliance with the Amendment. You also urge us to contact your office with any questions or concerns . The government of Guam is currently in the process of reviewing the Revenue Use Policy, the Amendment, and local laws relating to aviation fuel taxes. We will develop any · required Action Plan by January 8, 2016, and will contact you with any questions or concerns . Thank you.

P .O

. Box 2950 • l-Iagatna, Guam 96932 Tel: (67 1 ) -1-72

-893 1• Fax : (671 ) 477-4826 • governor.guam.gov • cal endar.guam.gov Eddi e Ba za Calvo 

## (tj @ edd iebazacalvo @ gove rn o rcalvo

**~** g ove rn orofg uamU.S. Department of Transportation Federal Aviation Administration

November 24,2015

The Honorable Eddie Baza Calvo Governor ofGuam Executive Chamber P.O. Box 2950 Agana, Guam 96932 Dear Governor: Office of Airport Compliance and Management Analysis

TIME 800 Independence Ave., SW. Washington, DC 20591



### A.B. WON PAT INTERI>\TIONALAIRPORTAUTHOR!TI GUAM



## DEC 1**~** 

## 2015 

# llM REC'D BY...-::;) 

### ----7**~**

On November 7, 2014, Federal Aviation Administration (FAA) adopted FAA Policy and Procedures Concerning the Use ofAirport Revenue; Proceeds from Taxes on Aviation Fuel, (79 Fed. Reg. 6628) (Amendment). The Amendment clarifies FAA's Policy and Procedures Concerning the Use ofAirport Revenue (64 Fed. Reg. 7696, February 16, 1999) (Revenue Use Policy) requirement that state or local taxes on aviation fuel (except taxes in effect on December 30, I987) are considered to be airport revenue subject to the revenue-use requirement. State and local taxes in effect on December 30, 1987 may qualify for grandfather status and be used for other than airport purposes. This Amendment is being applied prospectively. Any states and local governments not currently in compliance' wrll be provided wrth a reasonable transition time (not to exceed 3 years from the effective date ofDecember 8, 2014) to come into compliance with the FAA's Policy and Procedures Concemmg the Use of Airport Revenue (64 FR 7696, February 16, I999) (Revenue Use Policy). The FAA understood that changes to bring state and local taxes into compliance may require state and local legislation, and thus afford state and local governments the opportunity to develop an Action Plan to detail the methodology for administering aviation fuel taxes in accordance with the Amendment. State and local governments will be expected to submit anActiQ!l.I'lan_toJ'AA-out+ining a strategic plan to come into compliance with the amendment by December 8, 20I5. The Action Plan should identify (I) the process to amend any non-compliant laws, and restructure general revenues to adapt to the dedication ofaviation fuel tax revenue to airports and or State aviation programs; (2) a commitment to undertake the legislative process; and (3) the timeframe for action within the three year transition period for completion by December 8, 2017. The first deadline ofsubmitting an Action Plan by December 8 is approaching rapidly. Many state and localjurisdictions feel they are compliant with the Amendment. It would be prudent for the state and local governments to contact FAA Office ofAirport Compliance and Management Analysis with any questions or concerns. The FAA has posted the

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

### JD: FAA-2013-0988). [See http://www.rcgulations.gov/#!docke!Browser;mp=25;po=25;D=FAA-20 13-0988] The Action Plan should be submitted to: 

### Federal Aviation Administration Attention: Director, Ortice of Airport Compliance

and Management Analysis 800 Independence Avenue, SW 

### Washington. DC 20591 

### 2

The FAA is available to answer questions and to provide assistance to state and local governments working to become compliant with the Amendment to the Revenue Use Policy. If you or your staffhave any questions, please contact Jim Brov.n at (202) 267-5879. Sincerely, 

### / l } /

.. ;. j •, J ,-"'.:;. '--,.:> ' B :f<>n 0.:

. \ ltrff"' .Ill. \, · 1r,; 

### Director Office ofAirport Compliance

and Management Analysis

cc: 

### @egles.Wid<Ia~t~an:arger'l"A~aOOiiit~matran:aJ~'i!ioo~!:?Jiit,~r;i Herbert S. Fukuda, Adm1mstrator, Guam Department ofRevenue and Taxation · "·