Document ID: FAA-2012-0233-0001
Agency: faa
Document Type: Notice
Title: Airport Improvement Program Grant Assurances
Posted Date: 2012-04-13T04:00Z

[Federal Register Volume 77, Number 72 (Friday, April 13, 2012)]
[Notices]
[Pages 22376-22378]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-8961]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

[Docket No. FAA-2012-0233]

Airport Improvement Program (AIP) Grant Assurances

AGENCY: Federal Aviation Administration (FAA).

ACTION: Notice of modification of Airport Improvement Program grant 
assurances; opportunity to comment.

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SUMMARY: On February 14, 2012, the FAA Modernization and Reform Act of 
2012 was signed into law (Pub. L. 112-95). Provisions contained in this 
law necessitate modifications to five grant assurances.

DATES: The effective date the modifications to the grant assurances is 
April 13, 2012. The FAA will consider comments on the modifications to 
the grant assurances. If necessary, any appropriate revisions resulting 
from the comments received will be adopted as of the date of a 
subsequent publication in the Federal Register. Comments must be 
submitted on or before May 14, 2012.

ADDRESSES: You may send comments [identified by Docket Number FAA-2012-
0233] using any of the following methods:
     Government-wide rulemaking web site: Go to http://www.regulations.gov and follow the instructions for sending your 
comments electronically.
     Mail: Docket Operations, U.S. Department of 
Transportation, West Building, Ground Floor, Room W12-140, Routing 
Symbol M-30, 1200 New Jersey Avenue SE., Washington, DC 20590.
     Fax: 1-202-493-2251.
     Hand Delivery: To Docket Operations, Room W12-140 on the 
ground floor of the West Building, 1200 New Jersey Avenue SE., 
Washington, DC 20590, between 9 a.m. and 5 p.m., Monday through Friday, 
except Federal holidays.

FOR FURTHER INFORMATION CONTACT: Frank San Martin, Manager, Airports 
Financial Assistance, Federal Aviation Administration, 800 Independence 
Avenue SW., Washington, DC 20591, telephone (202) 267-3831; facsimile: 
(202) 267-5302.

Authority for Grant Assurance Modifications

    This notice is published under the authority described in Subtitle 
VII, Part B, Chapter 471, Sections 47107 and 47122 of Title 49 United 
States Code.

SUPPLEMENTARY INFORMATION: A sponsor (applicant) seeking financial 
assistance

[[Page 22377]]

for airport planning, airport development, noise compatibility planning 
or noise mitigation under 49 U.S.C., as amended must agree to comply 
with certain assurances. These assurances are submitted as part of a 
sponsor's application for federal assistance and are incorporated into 
all grant agreements. As need dictates, these assurances are modified 
to reflect new federal requirements. Notice of such modifications is 
published in the Federal Register, and an opportunity for public 
comment is provided.
    The assurances, prior to the FAA Modernization and Reform Act of 
2012 (Pub. L. 112-95), were published on February 3, 1988, at 53 FR 
3104 and amended on September 6, 1988, at 53 FR 34361; on August 29, 
1989, at 54 FR 35748; on June 10, 1994 at 59 FR 30076; on January 4, 
1995, at 60 FR 521; on June 2, 1997, at 62 FR 29761; on August 18, 
1999, at 64 FR 45008; on March 29, 2005 at 70 FR 15980; and on March 
18, 2011, at 76 FR 15028.
    A complete list of the current grant assurances can be viewed at: 
http://www.faa.gov/airports/aip/grant_assurances/

Discussion of Grant Assurance Modifications

    The FAA is modifying five grant assurances to conform with the FAA 
Modernization and Reform Act of 2012 (Pub. L. 112-95) (hereinafter 
``FMRA'' or ``the Act''). The FAA will implement these modified grant 
assurances upon publication of this notice to expedite processing 
fiscal year 2012 grants under the Airport Improvement Program. The FAA 
will accept public comments concerning these modified grant assurances 
for 30 days. If necessary, in response to comments received, the FAA 
will also adopt any appropriate revisions to these grant assurance 
modifications.

Through-the-Fence Arrangements

    Section 136 of the FMRA amends the statutory conditions for project 
grant approval to permit sponsors of general aviation airports to enter 
into residential through-the-fence arrangements. The FAA is amending 
paragraph (g) of Sponsor Assurance 5, Preserving Rights and Powers, to 
conform to this change in the law. Additionally, the FAA is amending 
paragraph (a) of Sponsor Assurance 29, Airport Layout Plan, to require 
that all proposed and existing access points used to taxi aircraft 
across the airport property's boundary be depicted on the airport 
layout plan (ALP). This includes all residential and commercial 
through-the-fence access points at both general aviation and commercial 
service airports. ALP depiction of existing access points can be made 
through pen-and-ink changes. ALP depiction of residential through-the-
fence access points at general aviation airports will facilitate the 
FAA's ability to enforce the requirements included in Section 136.

Use of Airport Revenues

    Sections 149 and 813 of the Act modify the statutory grant 
assurances on use of airport revenue to add two new exceptions. The FAA 
is revising Sponsor Assurance 25 to incorporate these new statutory 
exceptions relating to use of proceeds from the sale of an airport and 
use of revenues derived or generated by mineral extraction. To make 
this assurance easier to understand, the FAA reorganized paragraph (a) 
of Sponsor Assurance 25 by taking the grandfathering exception set 
forth at the end of paragraph (a) and making it a new subparagraph 
(a)(1). The two new statutory exceptions are then stated verbatim as 
separate new subparagraphs (a)(2) and (3).

Veteran's Preference

    Section 139 expands the statutory grant assurance regarding 
veteran's preference to include Persian Gulf veterans, Afghanistan-Iraq 
war veterans, and small business concerns owned and controlled by 
disabled veterans. FAA has revised Sponsor Assurance 15, Veteran's 
Preference, to include these changes verbatim.

Costs of Relocating or Replacing Sponsor-Owned Property

    Sections 135(a) and 138(c) of the FMRA revise the statutory grant 
assurance relating to airport layout plans to provide that a sponsor 
does not have to bear all costs of relocating property or its 
replacement and of restoring the property or its replacement to the 
level that existed before the alteration was made in certain 
circumstances. The FAA has added this exception to paragraph (b) of 
Sponsor Assurance 29, Airport Layout Plan, to incorporate this 
statutory change.

Disposal of Land

    Section 135(b) of the Act makes several changes to the statutory 
assurances regarding disposal of land relating to noise buffers and 
leasing of land for noise compatibility purposes and preferences for 
reinvesting or transferring proceeds from disposal of land. These 
changes have been included in paragraphs (a) and (b) of Sponsor 
Assurance 31, Disposal of Land.
    In consideration of the above, the FAA makes the following changes:

    C. Sponsor Certification. The sponsor hereby assures and 
certifies, with respect to this grant that:
* * * * *

5. Preserving Rights and Powers.

* * * * *
    g. Sponsors of commercial service airports will not permit or 
enter into any arrangement that results in permission for the owner 
or tenant of a property used as a residence, or zoned for 
residential use, to taxi an aircraft between that property and any 
location on airport. Sponsors of general aviation airports entering 
into any arrangement that results in permission for the owner of 
residential real property adjacent to or near the airport must 
comply with the requirements of Sec. 136 of Public Law 112-95 and 
the sponsor assurances.
* * * * *
    15. Veteran's Preference. It shall include in all contracts for 
work on any project funded under this grant agreement which involve 
labor, such provisions as are necessary to insure that, in the 
employment of labor (except in executive, administrative, and 
supervisory positions), preference shall be given to Vietnam era 
veterans, Persian Gulf veterans, Afghanistan-Iraq war veterans, 
disabled veterans, and small business concerns owned and controlled 
by disabled veterans as defined in Section 47112 of Title 49, United 
States Code. However, this preference shall apply only where the 
individuals are available and qualified to perform the work to which 
the employment relates.
* * * * *

25. Airport Revenues.

    a. All revenues generated by the airport and any local taxes on 
aviation fuel established after December 30, 1987, will be expended 
by it for the capital or operating costs of the airport; the local 
airport system; or other local facilities which are owned or 
operated by the owner or operator of the airport and which are 
directly and substantially related to the actual air transportation 
of passengers or property; or for noise mitigation purposes on or 
off the airport. The following exceptions apply to this paragraph:
    (1) If covenants or assurances in debt obligations issued before 
September 3, 1982, by the owner or operator of the airport, or 
provisions enacted before September 3, 1982, in governing statutes 
controlling the owner or operator's financing, provide for the use 
of the revenues from any of the airport owner or operator's 
facilities, including the airport, to support not only the airport 
but also the airport owner or operator's general debt obligations or 
other facilities, then this limitation on the use of all revenues 
generated by the airport (and, in the case of a public airport, 
local taxes on aviation fuel) shall not apply.
    (2) If the Secretary approves the sale of a privately owned 
airport to a public sponsor and provides funding for any portion of 
the public sponsor's acquisition of land, this limitation on the use 
of all revenues generated by the sale shall not apply to

[[Page 22378]]

certain proceeds from the sale. This is conditioned on repayment to 
the Secretary by the private owner of an amount equal to the 
remaining unamortized portion (amortized over a 20-year period) of 
any airport improvement grant made to the private owner for any 
purpose other than land acquisition on or after October 1, 1996, 
plus an amount equal to the federal share of the current fair market 
value of any land acquired with an airport improvement grant made to 
that airport on or after October 1, 1996.
    (3) Certain revenue derived from or generated by mineral 
extraction, production, lease, or other means at a general aviation 
airport (as defined at Section 47102 of title 49 United States 
Code), if the FAA determines the airport sponsor meets the 
requirements set forth in Sec. 813 of Public Law 112-95.
* * * * *

29. Airport Layout Plan.

    a. It will keep up to date at all times an airport layout plan 
of the airport showing (1) boundaries of the airport and all 
proposed additions thereto, together with the boundaries of all 
offsite areas owned or controlled by the sponsor for airport 
purposes and proposed additions thereto; (2) the location and nature 
of all existing and proposed airport facilities and structures (such 
as runways, taxiways, aprons, terminal buildings, hangars, and 
roads), including all proposed extensions and reductions of existing 
airport facilities; (3) the location of all existing and proposed 
nonaviation areas and of all existing improvements thereon; and (4) 
all proposed and existing access points used to taxi aircraft across 
the airport's property boundary. Such airport layout plans and each 
amendment, revision, or modification thereof, shall be subject to 
the approval of the Secretary which approval shall be evidenced by 
the signature of a duly authorized representative of the Secretary 
on the face of the airport layout plan. The sponsor will not make or 
permit any changes or alterations in the airport or any of its 
facilities which are not in conformity with the airport layout plan 
as approved by the Secretary and which might, in the opinion of the 
Secretary, adversely affect the safety, utility, or efficiency of 
the airport.
    b. If a change or alteration in the airport or the facilities is 
made which the Secretary determines adversely affects the safety, 
utility, or efficiency of any federally owned, leased, or funded 
property on or off the airport and which is not in conformity with 
the airport layout plan as approved by the Secretary, the owner or 
operator will, if requested, by the Secretary (1) eliminate such 
adverse effect in a manner approved by the Secretary; or (2) bear 
all costs of relocating such property (or replacement thereof) to a 
site acceptable to the Secretary and all costs of restoring such 
property (or replacement thereof) to the level of safety, utility, 
efficiency, and cost of operation existing before the unapproved 
change in the airport or its facilities except in the case of a 
relocation or replacement of an existing airport facility due to a 
change in the Secretary's design standards beyond the control of the 
airport sponsor.
* * * * *

31. Disposal of Land.

    a. For land purchased under a grant for airport noise 
compatibility purposes, including land serving as a noise buffer, it 
will dispose of the land, when the land is no longer needed for such 
purposes, at fair market value, at the earliest practicable time. 
That portion of the proceeds of such disposition which is 
proportionate to the United States' share of acquisition of such 
land will be, at the discretion of the Secretary, (1) reinvested in 
another project at the airport, or (2) transferred to another 
eligible airport as prescribed by the Secretary. The Secretary shall 
give preference to the following, in descending order, (1) 
reinvestment in an approved noise compatibility project, (2) 
reinvestment in an approved project that is eligible for grant 
funding under Section 47117(e) of title 49 United States Code, (3) 
reinvestment in an approved airport development project that is 
eligible for grant funding under Sections 47114, 47115, or 47117 of 
title 49 United States Code, (4) transferred to an eligible sponsor 
of another public airport to be reinvested in an approved noise 
compatibility project at that airport, and (5) paid to the Secretary 
for deposit in the Airport and Airway Trust Fund. If land acquired 
under a grant for noise compatibility purposes is leased at fair 
market value and consistent with noise buffering purposes, the lease 
will not be considered a disposal of the land. Revenues derived from 
such a lease may be used for an approved airport development project 
that would otherwise be eligible for grant funding or any permitted 
use of airport revenue.
    b. For land purchased under a grant for airport development 
purposes (other than noise compatibility), it will, when the land is 
no longer needed for airport purposes, dispose of such land at fair 
market value or make available to the Secretary an amount equal to 
the United States' proportionate share of the fair market value of 
the land. That portion of the proceeds of such disposition which is 
proportionate to the United States' share of the cost of acquisition 
of such land will, (1) upon application to the Secretary, be 
reinvested or transferred to another eligible airport as prescribed 
by the Secretary. The Secretary shall give preference to the 
following, in descending order: (1) Reinvestment in an approved 
noise compatibility project, (2) reinvestment in an approved project 
that is eligible for grant funding under Section 47117(e) of title 
49 United States Code, (3) reinvestment in an approved airport 
development project that is eligible for grant funding under 
Sections 47114, 47115, or 47117 of title 49 United States Code, (4) 
transferred to an eligible sponsor of another public airport to be 
reinvested in an approved noise compatibility project at that 
airport, and (5) paid to the Secretary for deposit in the Airport 
and Airway Trust Fund.
* * * * *

    Issued in Washington, DC on April 10, 2012.
Benito De Leon,
Director, Office of Airport Planning and Programming.
[FR Doc. 2012-8961 Filed 4-12-12; 8:45 am]
BILLING CODE 4910-13-P