FAA

Southern Region Airports Division

Regional Guidance Letter

Number: RGL 00-02

Program Area: Passenger Facility Charge

Date: June 2, 2000

Informal Resolution -

Extensions to Project Implementation Dates

Purpose

The purpose of this RGL is to define our policy on extensions to project implementation dates 

under the Passenger Facility Charge (PFC) Program.

Background

Part 158 clearly establishes that a project approved for PFC use must be commenced within 

two years of Federal Aviation Administration (FAA) approval. Moreover, Part 158 makes no 

provisions for the FAA to make administrative extensions to this implementation date. Instead, if 

the Administrator determines that significant progress toward implementation has not been 

made in the two-year timeframe, the FAA is to begin termination proceedings under Subpart E 

of Part 158. Subpart E requires that the FAA first pursue informal resolution with the public 

agency. Formal termination proceedings would begin only if the Administrator determines that 

informal resolution has not been successful.

Termination is disruptive to public agency and air carrier planning, and can undermine the 

confidence of the financial community in the reliability of PFC funds as a source of funding for 

debt instruments. Accordingly, the FAA has relied heavily on informal resolution, and, in some 

cases, has continued in informal resolution for excessive periods of time, even after the failure 

of a public agency to meet one or more implementation schedules agreed to in the informal 

resolution process.

The bond community is now satisfied that the FAA will not abruptly terminate PFC collections. 

Therefore, we will take action to follow the regulation and no longer continue in informal 

resolution indefinitely.

Cancellation

None
Policy

Failure by an airport owner to implement the project within two years of FAA approval requires 

that the FAA initiate informal resolution procedures. As an acceptable remedy for informal 

resolution for an airport operator that fails to issue a Notice To Proceed (NTP) for a project 

within two years of FAA approval, the FAA may accept a revised implementation date only onetime and under the following terms:

• The airport owner provides sufficient justification why a revised implementation date is 

necessary.

• A firm schedule including milestones is established for meeting the revised date.

• The airport owner agrees to withdraw the project should it fail to meet the revised 

implementation schedule/and agreed upon milestones.

• The revised date is no further than nine months (and at the extreme limit one year) in the 

future. This time frame represents a maximum period during which formal termination 

proceedings, if initiated, could normally be completed. Project implementation during this 

period would normally be satisfactory to end such proceedings.

If it does not appear that the airport operator will be able to meet the revised schedule and 

milestones with a reasonable effort, the program manager should not approve the revised 

implementation date and should proceed with termination.

If the airport owner does not meet any of its proposed milestones for implementing the project, 

we should proceed with terminating its collection and use authority for the project. The airport 

operator should be given the opportunity to withdraw the project in lieu of termination. Only in 

extreme and unusual circumstances would we consider more than a one-time revision to the 

implementation date. A revised implementation schedule for more than one year or a second 

informal resolution establishing revised dates can only be approved by the Division Manager in 

coordination with the Director of Airport Planning and Programming.

ADO Program Managers are to make the airport owner aware that it will not be given an 

opportunity for a second informal resolution. The airport owner should be able to achieve the 

milestones without an extraordinary effort. If this does not appear possible, the airport operator 

should be asked to voluntarily withdraw the project or the ADO program manager should 

terminate their collection and use authority.

Implementation Date

This policy is effective immediately. Airport owners that have implemented a PFC should be 

notified of this policy, particularly at locations that we have agreed to a one-time revision to the 

implementation date.

Informal Resolution - Extensions to Project Implementation Dates Page 2 of 3

Airports Division
Point of Contact

Troy Butler, ASO-610B, 404-305-6727

Stephen A. Brill

/Signed/

Last Reviewed: June 26, 2008

Informal Resolution - Extensions to Project Implementation Dates Page 3 of 3

Airports Division