Document ID: FAA-2022-1797-0001
Agency: faa
Document Type: Notice
Title: Funding Opportunity: Airport Improvement Program Supplemental Discretionary Grants; Fiscal Year 2022
Posted Date: 2022-12-29T05:00Z

[Federal Register Volume 87, Number 249 (Thursday, December 29, 2022)]
[Notices]
[Pages 80248-80254]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-28285]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

[Docket #FAA-2022-1797]

FY 2022 Competitive Funding Opportunity: Airport Improvement 
Program Supplemental Discretionary Grants

AGENCY: Federal Aviation Administration (FAA), Department of 
Transportation.

ACTION: Notice of funding opportunity.

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SUMMARY: The Federal Aviation Administration (FAA) announces the 
opportunity to apply for approximately $268,728,965 in fiscal year (FY) 
2022 competitive supplemental discretionary grants. The purpose of the 
supplemental discretionary grant program is to make grants to eligible 
airports for airport construction projects, associated airport capital 
planning, noise planning and noise mitigation projects, and energy and 
environmental sustainability projects. FAA will implement the FY 2022 
supplemental discretionary grant program consistent with Airport 
Improvement Program (AIP) sponsor and project eligibility and will 
consider project applications that align with the priorities, 
limitations, and requirements described in this notice.

DATES: Airport sponsors that wish to be considered for FY 2022 
supplemental discretionary funding should submit an application that 
meets the requirements of this Notice of Funding Opportunity (NOFO) as 
soon as possible, but no later than 5 p.m. eastern time on Tuesday, 
January 31, 2023. Submit applications to the specified FAA Supplemental 
2022 NOFO mailbox per instructions in section D below. Additional 
project information may be required after the original application 
submission date. FAA may contact the grant applicant for any additional 
information required for an initial project evaluation based on the 
application submission.

FOR FURTHER INFORMATION CONTACT: David F. Cushing, Manager, Airports 
Financial Assistance Division, APP-500, at (202) 267-8827.

SUPPLEMENTARY INFORMATION:

A. Program Description

    This competitive supplemental discretionary grant program falls 
under the project grant authority for the Airport Improvement Program 
(AIP) in 49 United States Code (U.S.C.) 47104. Per 2 Code of Federal 
Regulations (CFR) part 200--Uniform Administrative Requirements, Cost 
Principles, and Audit Requirements for Federal Awards, the AIP Federal 
Assistance Listings Number is 20.106, with the objective of assisting 
eligible airports in the development and improvement of a nationwide 
system that adequately meets the needs of civil aeronautics.
    Public Law 117-103, Consolidated Appropriations Act, 2022, 
authorizes the Secretary of Transportation to issue grants for projects 
as authorized by subchapter 1 of chapter 471 and subchapter 1 of 
chapter 475 of title 49, U.S.C., in a total amount of supplemental 
funding of $554,180,000, to remain available through September 30, 
2024. Of this total made available, and as stipulated in Public Law 
117-103 and the accompanying Joint Explanatory Statement (JES), 
Congress sets aside up to $2,770,900 (0.5 percent) for administrative 
expenses and up to $3,500,000 to reimburse losses related to Temporary 
Flight Restrictions. After these initial set-asides, $547,909,100 
remains available for discretionary grants.
    Of the total made available, $279,180,135 is available for the 
purposes, and in amounts, specified for Community Project Funding/
Congressionally Directed Spending as stipulated in Public Law 117-103 
and the JES. This Congressionally Directed Spending identified specific 
projects at specific airports and thus is not part of this NOFO.
    As such, per the provisions of Public Law 117-103 and the JES 
discussed above, funds remaining after those set-asides shall be 
available to the Secretary of Transportation to distribute as 
discretionary grants to airports, as authorized by subchapter 1 of 
chapter 471 and subchapter 1 of chapter 475 of title 49, U.S.C. 
Accordingly, at least $268,728,965 is available under this NOFO.
    Notably, the JES directs FAA to adhere to 49 U.S.C. 47115(j)(3)(B), 
requiring FAA to make available not less than 50 percent of the funds 
for grants at nonhub, small hub, reliever, and nonprimary airports. 
Furthermore, the JES directs the FAA to prioritize the remaining 50 
percent of funds for grants at medium hub and large hub airports. This 
50 percent applies to the amount of Supplemental Funding available for 
grants of $547,909,100, including Community Project Funding/
Congressionally Directed Spending, which is not the subject of this 
NOFO. This results in no less than approximately $20,000,000 available 
for supplemental discretionary grants to nonhub, small hub, reliever, 
and nonprimary airports. FAA intends to award no more than $70,000,000 
to comply with the JES.
    At least $25,000,000 will be made available for the Voluntary 
Airport Low Emissions Program (VALE) and the Zero-Emission Vehicle and 
Infrastructure Program (ZEV), pursuant to the JES. The JES also directs 
FAA to ensure that funds are made available to reduce the impact of 
noise on local communities, including funding grants for noise planning 
and noise mitigation.
    Eligible project categories are described in detail in the section 
C. Eligibility, sub-section 3. Project Eligibility.
    Consistent with statutory criteria and E.O. 14008, ``Tackling the 
Climate Crisis at Home and Abroad'' (86 FR 7619), FAA seeks to fund 
projects that align

[[Page 80249]]

with the President's greenhouse gas reduction goals, promote energy 
efficiency, support fiscally responsible land use and efficient 
transportation design, support terminal development compatible with the 
use of sustainable aviation fuels and technologies, increase climate 
resilience, incorporate sustainable and less emissions-intensive 
pavement and construction materials wherever possible, and reduce 
pollution. This focus extends beyond the $25,000,000 set aside for VALE 
and ZEV project grants. This funding supports FAA's Climate Challenge, 
as described herein and at this link: https://qa-www.faa.gov/sites/faa.gov/files/airports/environmental/zero_emissions_vehicles/airports-climate-challenge-presentation-April2022.pdf.
    In addition, in support of E.O. 13985, ``Advancing Racial Equity 
and Support for Underserved Communities Through the Federal 
Government'' (86 FR 7009), FAA seeks to fund projects that address the 
challenges faced by individuals in underserved communities and to 
pursue emission reductions that fight climate change and improve air 
quality in over-burdened communities. This includes, pursuant to the 
JES, funding noise projects, including noise planning and noise 
mitigation in neighborhoods impacted by aircraft noise near airports. 
To the extent that projects impact terminal and land-side elements, FAA 
seeks to fund projects that accommodate persons with disabilities 
accessing aviation services or airport employment.
    Section E provides more information on the specific measures a 
project may undertake to support these goals.
    All projects must comply with Federal civil rights requirements. 
See section F.2 of this NOFO for program requirements.

B. Federal Award Information

    This NOFO announces approximately $268,728,965, subject to the 
availability of funds, for supplemental discretionary grants. From FY 
2018 through FY 2021, over 550 supplemental discretionary grants were 
awarded, totaling approximately $2.3 billion. The discretionary grants 
ranged in amount from $160,397 to $29,115,000. The average AIP 
supplemental discretionary grant was approximately $5,200,000. The 
amount available under this NOFO is significantly less than prior 
years' competitive appropriation. Those supplemental discretionary 
appropriations ranged from $400 million to $1 billion.
    Under 49 U.S.C. 47115(j)(3)(B), not less than 50 percent of the 
funds made available shall be for grants at nonhub, small hub, 
reliever, and nonprimary airports. Furthermore, the JES directs the FAA 
to prioritize the remaining 50 percent of funds for grants at medium 
hub and large hub airports. This 50 percent applies to the amount of 
Supplemental Funding available for grants of $547,909,100, including 
Community Project Funding/Congressionally Directed Spending, which are 
not the subject of this NOFO. This results in a range of available 
funding of approximately $20,000,000 to $70,000,000 available for 
supplemental discretionary grants to nonhub, small hub, reliever, and 
nonprimary airports.
    In addition, the JES directs at least $25,000,000 be made available 
for Voluntary Airport Low Emissions (VALE) projects and Zero-Emissions 
Vehicles (ZEV) projects. These funds do not affect the funding 
available as part of annual AIP funding outside of this NOFO. The JES 
also directs FAA to ensure that AIP funds are made available to reduce 
the impact of noise on local communities.
    The FAA will prioritize funding projects that are complete usable-
units-of-work, to include construction of eligible airport development, 
acquisition and installation of eligible equipment, acquisition and 
commissioning of eligible rolling-stock equipment, procurement of 
actionable plans, including sustainability plans, energy planning and 
noise compatibility planning as described in section C.3 of this NOFO.
    Selected projects should be ready to go to grant according to AIP 
requirements, including such things as National Environmental Policy 
Act (NEPA) clearance, Federal civil rights compliance, construction 
bids or negotiated fees, by May 15, 2024, but may go to grant at any 
time post-award.

C. Eligibility Information

1. Eligible Applicants

    Eligible applicants are those airport sponsors normally eligible 
for AIP discretionary grants as defined in 49 U.S.C. 47115, which 
includes a public agency, private entity, state agency, Indian Tribe or 
Pueblo owning a public-use NPIAS airport, the Secretary of the Interior 
for Midway Island Airport, the Republic of the Marshall Islands, 
Federated States of Micronesia, and the Republic of Palau.

2. Cost Sharing or Matching

    Grants have Federal shares ranging from 70 percent to 95 percent 
under 49 U.S.C. 47109. The Federal share percentage is based on the 
airport size and type of project. Federal share by airport and project 
type can be found in chapter 4 of the AIP Handbook, FAA Order 5100.38D, 
February 26, 2019.

3. Project Eligibility

    Projects should be ready to begin by/on June 30, 2024. Supplemental 
discretionary funds are awarded in accordance with 49 U.S.C. 47115(j).
    Eligible projects include, but are not limited to:
    a. Improvements related to enhancing airport safety, capacity, 
security, environmental sustainability, planning, or any combination of 
the above, including terminal development;
    b. Planning for the feasibility of and options for unleaded 
aviation fuel infrastructure;
    c. Airport projects associated with pavement rehabilitation, 
reconstruction, and extension of the pavement's useful life;
    d. Noise planning and noise mitigation;
    e. Projects to plan for, relocate, and/or construct run-up 
locations to reduce community exposure to emissions from leaded 
aviation fuel usage;
    f. Other emission reduction projects.
    In further support of FAA's Climate Challenge, supplemental 
discretionary funds are available for certain low-emission fuel system 
or air quality improvement projects such as Voluntary Airport Low 
Emissions (VALE) projects and Zero-Emissions Vehicles (ZEV) projects, 
as well as energy efficiency, energy resiliency and sustainability 
projects.
    VALE is a competitive program that provides grant funding to 
commercial airports implementing clean technology projects that improve 
air quality in non-attainment and maintenance areas. See https://www.faa.gov/airports/environmental/vale/. ZEV is a competitive program 
that provides grant funding to acquire zero-emissions vehicles and 
associated infrastructure for any airport in the National Plan of 
Integrated Airport Systems (NPIAS). See https://www.faa.gov/airports/environmental/zero_emissions_vehicles/ vehicles/.
    Applicants should submit an application specifically referencing 
all requirements in this NOFO to be considered for supplemental 
discretionary funding, even if the applicant previously applied for 
funding under FY 2022 AIP.
    Examples of eligible energy and sustainability project categories 
that support FAA's Climate Challenge are:
    a. Airport Sustainability Planning Program--provides grant funding 
for eligible airports to develop comprehensive sustainability plans.

[[Page 80250]]

Based on the authority of 49 U.S.C. 47102(5), such plans may address a 
broad array of environmental and energy planning activities, green 
construction and operations, energy efficiency, and renewable energy. 
Consistent with E.O. 14008, a sustainability plan also can address 
climate resiliency. Additional information is available at https://www.faa.gov/airports/environmental/sustainability/.
    b. Energy Efficiency of Airport Power Sources Program--provides 
grant funding for energy assessments/audits and implementation of 
energy reduction measures to reduce energy consumption across airport 
operations. Eligibility is based on Energy Efficiency of Airport Power 
Sources projects eligibility per 49 U.S.C. 47140(a)(b), and details are 
contained in the AIP Handbook section 7, which is available at https://www.faa.gov/airports/aip/aip_handbook/media/AIP-Handbook-Order-5100-38D-Chg1.pdf.
    c. Energy Supply, Redundancy and Microgrids Program--provides grant 
funding that can be used to improve the reliability and efficiency of 
the airport power supply. Eligibility is based on Energy Supply, 
Redundancy and Microgrids projects eligibility under 49 U.S.C. 
47102(3)(P). Additional information is available at https://www.faa.gov/airports/environmental/.
    Also, pursuant to the JES, noise planning and noise mitigation 
projects have priority. More information on noise planning and noise 
mitigation projects, and their eligibility criteria, can be found at 
https://www.faa.gov/airports/environmental/airport_noise/ and in 
appendix R of the AIP Handbook, which is available at https://www.faa.gov/airports/aip/aip_handbook/media/AIP-Handbook-Order-5100-38D-Chg1.pdf.
    Additional funding considerations specific to supplemental 
discretionary funds are described in section B, Federal Award 
Information, of this NOFO.

D. Application and Submission Information

1. Address To Request Application Package.

    Application forms are available at https://www.faa.gov/airports/aip/aip_supplemental_appropriation. All applications must include the 
``Type of Project'' identifier indicated in section D.2 in Box 2: 
``Other'' of the applications form.
    Direct all administrative inquiries regarding applications to the 
appropriate Regional Office (RO) or Airports District Office (ADO). RO/
ADO contact information is available at https://www.faa.gov/about/office_org/headquarters_offices/arp/offices/regional_offices. For 
specific technical questions about environmental programs, please see 
section G for contact information.

2. Content and Form of Application Submission

    For content and application information, reference Standard 
Operating Procedure for FAA Review and Approval of an Airport 
Improvement Program (AIP) Grant Application, which is available at 
https://www.faa.gov/sites/faa.gov/files/airports/resources/sops/arp-sop-600-grant-application.pdf.
    All applications must be submitted electronically following 
instructions to the following mailbox: [email protected].
    All applications must include the following information:
    a. Identify the type of project to which the grants applications 
refers (select only one group):

[cir] Group N: airport noise planning and noise mitigation projects
[cir] Group E: environmental projects that reduce emissions or increase 
energy efficiency or reliability as described in section C.3, 
Eligibility
[cir] Group VZ: VALE/ZEV projects; or
[cir] Group I: airport development or terminal development projects, 
including planning for such development.

    b. Where applicable, competitive applications for such projects 
should include specific provisions incorporating sustainable, less 
emissions-intensive pavement and construction materials as allowable 
and should describe construction practices that reduce pollution.
    c. The grant applications may be based on estimates. However, FAA 
may request additional information, including bids or firm cost 
determinations, substantiation of greenhouse gas or emissions 
reductions, and associated requirements.
    d. Airports covered under FAA's State Block Grant Program should 
coordinate with their associated state agencies and submit project 
applications via the procedures noted herein to the specified mailbox.
    e. All project applications to the VALE and ZEV programs should 
have the Group VZ designation. Applications for all VALE and ZEV 
projects must address the requirements listed on their respective web 
pages. Refer to the link listed below for the respective programs:

[cir] VALE: https://www.faa.gov/airports/environmental/vale
[cir] ZEV: https://www.faa.gov/airports/environmental/
zero_emissions_vehicles
    In addition, the following information must be included for the 
specific group.
    For Group N applications:
    a. Describe how noise compatibility planning and/or mitigation has 
or will meaningfully engage communities affected by aviation noise 
emissions, with effective public participation that is accessible to 
all persons regardless of race, creed, color, national origin, 
disability, age, or sex.
    b. Describe any public involvement plan or targeted outreach, 
demonstrating engagement of diverse input such as community-based 
organizations during project planning and consideration of such input 
in the decision-making
    c. With regard to noise projects, including noise planning and 
noise mitigation, how the project aligns with E.O. 13985, ``Advancing 
Racial Equity and Support for Underserved Communities Through the 
Federal Government'' (86 FR 7009).
    For Group E or Group VZ applications:
    a. Identification of the specific program under which the project 
fits (i.e., VALE; ZEV; Airport Sustainability, Energy Efficiency of 
Airport Power Sources; or Energy Supply, Redundancy and Microgrids);
    b. A description of the project and the benefits the project will 
provide;
    c. Cost estimate;
    d. Total Project Cost per tons of emissions reductions, as 
applicable;
    e. Estimated reduction of greenhouse gas that the project (other 
than proposals for plans and audits only) will produce, relative to a 
no-action baseline, including average annual amount and estimated 
amount over the project lifetime, and a description of the methodology 
and tool used to calculate the estimated greenhouse gas reduction;
    f. Other environmental sustainability benefits with regard to 
energy resiliency, efficiency, or reliability, such as through 
incorporation of specific design elements that address resiliency to 
climate change impacts; and
    g. Description of the degree to which the project addresses the 
disproportionate negative environmental impacts of transportation on 
disadvantaged communities, consistent with environmental justice and 
civil rights authorities.
    For Group I applications:
    a. Describe how the project will incorporate considerations of 
climate change and environmental justice in the planning stage and in 
project delivery,

[[Page 80251]]

such as through incorporation of specific design elements that address 
climate change impacts.
    b. Describe the degree to which the project is expected to reduce 
transportation-related pollution, such as air pollution and greenhouse 
gas emissions relative to a no-action baseline, increase use of lower-
carbon travel modes such as active transportation, improve the 
resiliency of at-risk infrastructure, incorporate lower-carbon pavement 
and construction materials and techniques, or address the 
disproportionate negative environmental impacts of transportation on 
disadvantaged communities.
    c. Explain to what extent the project will prevent stormwater 
runoff that would be a detriment to aquatic species.
    d. Describe whether the project will promote energy efficiencies, 
support fiscally responsible land use and transportation efficient 
design that reduces greenhouse gas emissions, improve public health, 
increase resilience to hazards, and recycle or redevelop brownfield 
sites, particularly in communities that disproportionally experience 
climate-change-related consequences. Such project features support 
FAA's Climate Challenge and adhere to the requirements of E.O. 14008, 
``Tackling the Climate Crisis at Home and Abroad'' (86 FR 7619).
    e. Describe how the project has or will meaningfully engage 
communities affected by the project, with effective public 
participation that is accessible to all persons regardless of race, 
creed, color, national origin, disability, age, or sex, consistent with 
Federal civil rights requirements, and describe how community feedback 
will be taken into account in decision-making. Civil rights 
considerations should be integrated into planning, development, and 
implementation of transportation investments, including application of 
the Disadvantaged Business Enterprise (DBE) Program.
    f. Describe any public involvement plan or targeted outreach, 
demonstrating engagement of diverse input such as community-based 
organizations during project planning and consideration of such input 
in the decision-making. (please see DOT's Promising Practices for 
Meaningful Public Involvement in Transportation Decision-Making at 
https://www.transportation.gov/priorities/equity/promising-practices-meaningful-public-involvement-transportation-decision-making)
    g. Describe planning and engagement in the project design phase to 
mitigate and, to the greatest extent possible, prevent physical and 
economic displacement. These efforts display adherence to E.O. 13985, 
``Advancing Racial Equity and Support for Underserved Communities 
Through the Federal Government'' (86 FR 7009).

3. Unique Entity Identifier and System for Award Management (SAM)

    Applicants must comply with 2 CFR part 25--Universal Identifier and 
System for Award Management. All applicants must have a Unique Entity 
Identifier (UEI) provided by SAM. Additional information about 
obtaining a UEI and registration procedures may be found at the SAM 
website (currently at http://www.sam.gov). Each applicant is required 
to: (1) be registered in SAM; (2) provide a valid UEI prior to grant 
award; and (3) continue to maintain an active SAM registration with 
current information at all times during which the applicant has an 
active Federal award or an application or plan under consideration by 
FAA. Under the supplemental discretionary grant program, the UEI and 
SAM account must belong to the entity that has the legal authority to 
apply for, receive, and execute supplemental discretionary grants.
    Once awarded, the FAA grant recipient must maintain the currency of 
its information in SAM until the recipient submits the final financial 
report required under the grant or receives the final payment, 
whichever is later. A grant recipient must review and update the 
information at least annually after the initial registration and more 
frequently if required by changes in information or another award term.
    FAA may not make an award until the applicant has complied with all 
applicable UEI and SAM requirements. If an applicant has not fully 
complied with the requirements by the time FAA is ready to make an 
award, FAA may determine that the applicant is not qualified to receive 
an award and use that determination as a basis for making a Federal 
award to another applicant.
    Non-Federal entities that have received a Federal award are 
required to report certain civil, criminal, or administrative 
proceedings to SAM (currently the Federal Awardee Performance and 
Integrity Information System (FAPIIS: https:/sam.gov/content/fapiis) to 
ensure registration information is current and complies with Federal 
requirements. Applicants should refer to 2 CFR 200.113 for more 
information about this requirement.

4. Submission Dates and Times

    Airports that want to be considered for FY 2022 AIP competitive 
supplemental discretionary funding should submit an application that 
meets the requirements of this NOFO as soon as possible, but no later 
than 5 p.m. eastern time on Tuesday, January 31, 2023. The grant 
applications may be based on estimates. However, FAA may request 
additional information, including bids or firm cost determinations, 
State letters of emission reduction eligibility (VALE projects), 
substantiation of greenhouse gas or emissions reductions, and other 
associated requirements.

5. Funding Restrictions

    Under 49 U.S.C. 47115, projects must meet airport and project 
eligibility criteria. Eligibility is derived from statute and may 
include projects to enhance airport safety, capacity, security, and the 
environment or any combination of the above. In general, sponsors may 
receive AIP funds for most airfield capital improvements, and in 
specific situations, for terminals, hangars, equipment, and non-
aeronautical development. Operational costs--such as salaries, 
equipment, and supplies--are not eligible for AIP grants.
    The AIP has funding restrictions by airport and/or project type, 
including for all groups of projects discussed herein. Please see below 
criteria and refer to AIP Handbook, chapters 3 and 4, for further 
details on eligibility criteria and funding restrictions, which is 
available at https://www.faa.gov/airports/aip/aip_handbook/. The AIP 
Handbook is the published policy for AIP. Except where options are 
specifically noted or where non-mandatory language is used, the 
procedures and requirements are mandatory. The general requirements for 
project funding include considerations of: project eligibility; project 
justification; good title of airport property; an FAA-approved airport 
layout plan (if applicable); a complete intergovernmental review; 
airport-user consultations; complete required environmental reviews; a 
determination that the grant will yield a usable unit of work; 
certification that the project specification will meet FAA standards; 
applicable cost justifications; and a work plan to complete the project 
without unreasonable delay.
    See AIP Handbook, section B, Federal Award Information, for 
specific mandatory program set-asides. Also see section C for 
eligibility details for project categories under this NOFO. 
Environmental sustainability and energy projects associated with the 
Climate Challenge may have additional funding restrictions, which are 
described in the program website links in section C.

[[Page 80252]]

E. Application Review Information

1. Criteria

    General:
    All applications will be rated using the following criteria:
    a. Projects are subject to the availability of funds
    b. Projects must meet the eligibility requirements identified in 
section C.3 of this NOFO
    c. Projects must be ready to begin by/on June 30, 2024.
    d. FAA will evaluate and administer these supplemental 
discretionary applications consistent with the statutory criteria as 
described in 49 U.S.C. 47115. Under 49 U.S.C. 47115(d), capacity 
enhancement projects have additional considerations, including a 
project's impact on national transportation system capacity, airport 
capacity, and global air cargo activity.
    e. Prerequisites for selection are: the capital improvement project 
is included in the airport's approved layout plan (if applicable), an 
environmental determination, and all necessary airspace studies. 
Prerequisites must be met in order for grant funding to be released.
    In addition, FAA seeks to support the creation of good-paying jobs 
with the free and fair choice to join a union and the incorporation of 
strong labor standards and workforce programs, in particular, 
registered apprenticeships and labor management partnerships. Projects 
that incorporate such planning considerations are expected to support a 
strong economy and labor market. Projects that have not sufficiently 
considered job creation and labor considerations in their planning, as 
determined by FAA, will be required to do so to the full extent 
possible under the law before receiving funds for construction.
    Finally, FAA will consider the readiness of the project to be 
completed within a four-year period of performance.
    Group-specific criteria:
    The following are criteria specific to each group:
    Group N: Noise and noise planning projects may be ranked amongst 
themselves under the following criteria:
    a. The extent to which the noise compatibility program or 
mitigation improves quality of life for residents within areas not 
compatible with aviation noise. This includes the extent to which the 
project engages diverse people and communities and meaningfully 
integrates equity considerations and community input into noise 
compatibility planning.
    b. Demonstrated strong collaboration and support among a broad 
range of stakeholders, including community-based organizations, other 
public or private entities, and homeowners and resident associations.
    c. With regard to noise projects, including noise planning and 
noise mitigation, FAA seeks to fund noise projects in alignment with 
E.O. 13985, ``Advancing Racial Equity and Support for Underserved 
Communities Through the Federal Government'' (86 FR 7009).
    Groups E or VZ: Energy and environmental sustainability projects, 
as mentioned in section C.3 Project Eligibility, may be ranked amongst 
themselves according to their standard National Priority Rating (NPR) 
or primarily by emission reduction efficiency as stated by Congress for 
ZEV projects (49 U.S.C. 47136).
    In addition, FAA will consider the following criteria:
    a. Cost per ton of emission reduction for criteria pollutants and 
greenhouse gases, as applicable. Criteria pollutants are codified in 
Clean Air Act standards at 40 CFR part 50 and are referred to as NAAQS, 
National Primary and Secondary Ambient Air Quality Standards;
    b. Cost to design, contract and implement the project;
    c. Estimated reduction in energy use or estimated energy 
production;
    d. Estimated reduction in greenhouse gas emissions relative to a 
no-action baseline, which should include average annual amount as well 
as the estimated amount over a project lifetime;
    e. Useful life of the improvements or infrastructure;
    f. Benefits to communities beyond the airport; and
    g. Resiliency and redundancy benefits that enhance operability or 
increase the ability to utilize energy sources with less greenhouse gas 
emissions.
    Rating such projects in this manner will assist FAA to advance 
project grant awards consistent with general AIP sponsor and project 
eligibility, and with due consideration of project applications in 
alignment with the priorities in E.O. 14008, ``Tackling the Climate 
Crisis at Home and Abroad'' and in support of FAA's Climate Challenge.
    In addition to the degree to which the project reduces emissions, 
as described above, FAA will consider the extent to which the project 
improves quality of life near the airport. FAA will consider the extent 
to which the project benefits a historically disadvantaged community or 
population, or areas of persistent poverty, as expressed in the 
President's January 20, 2021, E.O. 13985, ``Advancing Racial Equity and 
Support for Underserved Communities Through the Federal Government.''
    Group I: Among all other airport improvement projects, FAA will 
apply the standard National Priority System (NPS) equation to calculate 
the NPR, a quantitative measure used for ranking project importance for 
discretionary grants.
    FAA will also consider:
    a. How the project incorporates climate change, environmental 
justice, and equity in the planning stage and in project delivery, such 
as through incorporation of specific design elements that address 
climate change impacts.
    b. The degree to which the project is expected to reduce 
transportation-related pollution compared to a no-action baseline, 
including reduction of greenhouse gas emissions; to increase use of 
lower-carbon travel modes such as active transportation; to improve the 
resiliency of at-risk infrastructure; to incorporate lower-carbon 
pavement and construction materials and techniques; and to address the 
disproportionate negative environmental impacts of transportation on 
disadvantaged communities.
    c. To what extent the project will prevent stormwater runoff.
    d. To what extent the project will promote energy efficiencies, 
support fiscally responsible land-use, employ efficient transportation 
design that reduce greenhouse gas emissions, improve public health, 
increase resilience to hazards, and recycle or redevelop brownfield 
sites, particularly in communities that disproportionally experience 
climate-change-related consequences.
    Rating such projects in this manner will assist FAA to advance 
project grant awards consistent with general AIP sponsor and project 
eligibility, and with due consideration of project applications in 
alignment with the priorities in E.O. 14008, ``Tackling the Climate 
Crisis at Home and Abroad'' and in support of FAA's Climate Challenge.
    This is described further in section E.2, Review and Selection 
Process, of this NOFO.

2. Review and Selection Process

    FAA will evaluate how well the projects meet the criteria in E.1, 
including project eligibility, justification, readiness, and the 
availability of matching funds.
    While FAA will consider the NPR in determining a project's 
priority, FAA will also assess qualitative factors such as project 
justification and priority

[[Page 80253]]

project identification. FAA will consider whether the project 
justification includes Safety or Security, System Capacity, 
Environment, and Access. Qualitative factors do not impact the NPR for 
a given project but are taken into account in funding decisions.
    In particular, FAA will prioritize projects that advance the goals 
of E.O. 14008, ``Tackling the Climate Crisis at Home and Abroad.'' E.O. 
14008 aims to put the United States on a path to achieve net-zero 
emissions, economy-wide no later than 2050. E.O. 14008 promotes 
sustainable infrastructure and emphasizes that Federal infrastructure 
investment should reduce climate pollution, and that the effects of 
greenhouse gas emissions and climate change should be considered. E.O. 
14008 also addresses climate action plans, data and information to 
improve adaptation and increase resilience. In FAA's Aviation Climate 
Action Plan, chapter 5, one of the key actions is to develop a 
resilience framework for airports through research and potential grant 
funding (see: https://www.faa.gov/sites/faa.gov/files/2021-11/Aviation_Climate_Action_Plan.pdf). The review and selection process 
will take into consideration these E.O. 14008 goals that also support 
FAA's Climate Challenge. FAA will also consider projects that advance 
the goals of the following E.O.: the President's January 20, 2021, E.O. 
13985, ``Advancing Racial Equity and Support for Underserved 
Communities Through the Federal Government''; the President's May 20, 
2021, E.O. 14030, ``Climate Related Financial Risk''; and the 
President's July 9, 2021, E.O. 14036, ``Promoting Competition in the 
American Economy.''

3. Integrity and Performance Check

    Prior to making a Federal award with a total amount of Federal 
share greater than the simplified acquisition threshold, FAA is 
required to review and consider any information about the applicant 
that is in the designated integrity and performance system accessible 
through SAM (currently FAPIIS) (see 41 U.S.C. 2313). An applicant, at 
its option, may review information in the designated integrity and 
performance systems accessible through SAM and comment on any 
information about itself that a Federal awarding agency previously 
entered. FAA will consider any comments by the applicant, in addition 
to the other information in the designated integrity and performance 
system, in making a judgment about the applicant's integrity, business 
ethics, and record of performance under Federal awards when completing 
the review of risk posed by applicants as described in 2 CFR 200.206.

F. Federal Award Administration Information

1. Federal Award Notices

    Supplemental discretionary grant awards are announced through a 
Congressional notification process and the Secretary's Notice of Intent 
to Fund. The FAA RO/ADO representative will contact the airport with 
further information and instructions. Once all pre-grant actions are 
complete, the FAA RO/ADO will offer the airport sponsor a grant for the 
announced project. This offer may be provided through postal mail or by 
electronic means. Once this offer is signed by the airport sponsor, it 
becomes a grant agreement. Awards made under this program are subject 
to conditions and assurances in the grant agreement.

2. Administrative and National Policy Requirements

a. Pre-Award Authority
    Under 49 U.S.C. 47110(b)(2), all project costs must be incurred 
after the grant execution date unless specifically permitted under the 
AIP statutes. Table 3-60 of the AIP Handbook lists the rules regarding 
when project costs can be incurred in relation to the grant execution 
date, the type of funding, and the type of project. Certain airport 
development costs incurred before execution of the grant agreement are 
allowable, but only if certain conditions under 49 U.S.C. 
47110(b)(2)(D) and Table 3-60 of the AIP Handbook are met.
b. Grant Requirements
    All grant recipients are subject to the grant requirements of the 
AIP, including the grant assurances, found in 49 U.S.C. chapter 471. 
Grant recipients are subject to requirements in the FAA's AIP Grant 
Agreement for financial assistance awards; the annual Certifications 
and Assurances required of applicants; and any additional applicable 
statutory or regulatory requirements, including nondiscrimination 
requirements and 2 CFR part 200, Uniform Administrative Requirements, 
Cost Principles, and Audit Requirements for Federal Awards. Grant 
requirements include, but are not limited to, approved projects on an 
airport layout plan, and compliance with Federal civil rights laws, Buy 
American requirements under 49 U.S.C. 50101, the Department of 
Transportation's Disadvantaged Business Enterprise (DBE) Program 
regulations for airports (49 CFR part 23 and 49 CFR part 26), Build 
America, Buy America requirements in sections 70912(6) and 70914 in 
Public Law 117-58, the Infrastructure Investment and Jobs Act, and 
prevailing wage rate requirements under the Davis-Bacon Act, as amended 
(40 U.S.C. 276a-276a-5, and reenacted at 40 U.S.C. 3141-3144, 3146, and 
3147).
    Domestic Preference Requirements: As expressed in E.O. 14005, 
``Ensuring the Future Is Made in All of America by All of America's 
Workers'' (86 FR 7475), it is the policy of the executive branch to 
maximize, consistent with law, the use of goods, products, and 
materials produced in, and services offered in, the United States. FAA 
expects all applicants to comply with that requirement without needing 
a waiver. However, to obtain a waiver, a recipient must be prepared to 
demonstrate how they will maximize the use of domestic goods, products, 
and materials in constructing their project.
    Civil Rights and Title VI: Recipients of Federal transportation 
funding will be required to comply fully with Title VI of the Civil 
Rights Act of 1964 and implement regulations, the Americans with 
Disabilities Act, section 504 of the Rehabilitation Act of 1973, and 
all other civil rights requirements. FAA's Office of Civil Rights will 
be providing resources and technical assistance to ensure full and 
sustainable compliance with Federal civil rights requirements.
    Critical Infrastructure Security and Resilience: It is the policy 
of the United States to strengthen the security and resilience of its 
critical infrastructure against both physical and cyber threats. Each 
applicant selected for Federal funding under this notice must 
demonstrate, prior to the signing of the grant agreement, effort to 
consider and address physical and cybersecurity risks relevant to the 
transportation mode and type and scale of the project. Projects that 
have not appropriately considered and addressed physical and 
cybersecurity and resilience in their planning, design, and project 
oversight, as determined by the Department and the Department of 
Homeland Security, will be required to do so before receiving funds for 
construction, consistent with Presidential Policy Directive 21--
Critical Infrastructure Security and Resilience and the National 
Security Presidential Memorandum on Improving Cybersecurity for 
Critical Infrastructure Control Systems.
    Performance and Program Evaluation: As a condition of grant award, 
grant recipients may be required to participate in an evaluation 
undertaken by FAA.

[[Page 80254]]

The evaluation may take different forms, such as an implementation 
assessment across grant recipients, an impact and/or outcomes analysis 
of all or selected sites within or across grant recipients, or a 
benefit/cost analysis or assessment of return on investment. FAA may 
require applicants to collect data elements to aid the evaluation. As a 
part of the evaluation, as a condition of award, grant recipients must 
agree to: (1) make records available to the evaluation contractor or 
FAA staff; (2) provide access to program records and any other relevant 
documents to calculate costs and benefits; (3) in the case of an impact 
analysis, facilitate the access to relevant information as requested; 
and (4) follow evaluation procedures as specified by the evaluation 
contractor or FAA staff. Requested program records or information will 
be consistent with record requirements outlined in 2 CFR 200.334-338 
and the grant agreement.
c. Standard Assurances
    Each grant recipient must assure that it will comply with all 
applicable Federal statutes, regulations, executive orders, directives, 
FAA circulars, and other Federal administrative requirements in 
carrying out any project supported by the supplemental discretionary 
grant. The grant recipient must acknowledge that it is under a 
continuing obligation to comply with the terms and conditions of the 
grant agreement issued for its project with the FAA. The grant 
recipient understands that Federal laws, regulations, policies, and 
administrative practices might be modified from time to time and may 
affect the implementation of the project. The grant recipient must 
agree that the most recent Federal requirements will apply to the 
project unless FAA issues a written determination otherwise.
    As referenced under section F.2.b, Grant Requirements, the grant 
recipient must submit the Certifications at the time of grant 
application, and Assurances must be accepted as part of the grant 
agreement at the time of accepting a grant offer. Grant recipients must 
also comply with the requirements of 2 CFR part 200, which ``are 
applicable to all costs related to Federal awards'' and which are cited 
in the grant assurances of the grant agreements. The Airport Sponsor 
Assurances are available on the FAA website at: https://www.faa.gov/airports/aip/grant_assurances.

3. Reporting

    Grant recipients are subject to financial reporting per 2 CFR 
200.328 and performance reporting per 2 CFR 200.329. Under the 
supplemental discretionary grant program, the grant recipient is 
required to comply with all Federal financial reporting requirements 
and payment requirements, including the submittal of timely and 
accurate reports. Financial and performance reporting requirements are 
available in the FAA October 2020 Airport Improvement Program (AIP) 
Grant Payment and Sponsor Financial Reporting Policy, which is 
available at https://www.faa.gov/sites/faa.gov/files/airports/aip/grant_payments/aip-grant-payment-policy.pdf. The grant recipient must 
comply with annual audit reporting requirements. The grant recipient 
and sub-recipients, if applicable, must comply with 2 CFR part 200, 
subpart F, Audit Reporting Requirements. The grant recipient must 
comply with any requirements outlined in 2 CFR part 180, Office of 
Management and Budget (OMB) Guidelines to Agencies on Governmentwide 
Debarment and Suspension (Nonprocurement).

G. Federal Awarding Agency Contact(s)

    For further information concerning this notice, please contact your 
local Regional Office or District Office. Contact information is 
available at https://www.faa.gov/airports/regions/.
    For technical questions regarding specific energy and environmental 
sustainability programs described in this NOFO, please contact:

a. VALE and ZEV--Michael Lamprecht, [email protected] or 202-
267-6496;

    b. Airport Sustainability Program--Alan Strasser, 
[email protected] or 202-267-7630;
    c. Energy Efficiency of Airport Power Supply; and Energy Supply, 
Redundancy and Microgrids--Alan Strasser, [email protected] or 202-
267-7630.
    To ensure applicants receive accurate information about eligibility 
for the program, the applicant is encouraged to contact FAA directly, 
rather than through intermediaries or third parties, with questions. 
All applicants, including those requesting full Federal share of 
eligible projects costs, should have a plan to address potential cost 
overruns as part of an overall funding plan.

    Issued in Washington, DC, on December 22, 2022.
Juan C Brown,
Acting Director, Office of Airport Planning and Programming.
[FR Doc. 2022-28285 Filed 12-28-22; 8:45 am]
BILLING CODE 4910-13-P