Document ID: FAA-2018-0526-0001
Agency: faa
Document Type: Notice
Title: Guidance: Airport Improvement Program for Fiscal Years 2018-2020
Posted Date: 2018-07-09T04:00Z

[Federal Register Volume 83, Number 131 (Monday, July 9, 2018)]
[Notices]
[Pages 31834-31836]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-14675]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

[Docket No: FAA-2018-0526]

Supplemental Guidance on the Airport Improvement Program (AIP) 
for Fiscal Years 2018-2020

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

ACTION: Notice.

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SUMMARY: The FAA is announcing the process for eligible airport 
sponsors in two categories to notify the FAA of any supplemental 
discretionary funding requests. The process includes two distinct 
deadlines with different submission requirements. The FAA may award 
supplemental discretionary funding regardless of whether the airport 
sponsor previously identified the project through the Airports Capital 
Improvement Plan (ACIP) process during the preceding year.

FOR FURTHER INFORMATION CONTACT: Elliott Black, Director, Office of 
Airport Planning and Programming, APP-1, at (202) 267-8775.

SUPPLEMENTARY INFORMATION: The Consolidated Appropriations Act, 2018 
(hereafter referred to as ``the Act'') appropriated ``an additional 
amount for ``Grants-In-Aid for Airports'', to enable the Secretary of 
Transportation to make grants for projects as authorized by subchapter 
1 of chapter 471 and subchapter 1 of chapter 475 of title 49, U.S.C., 
$1,000,000,000, to remain available through September 30, 2020.'' \1\ 
The Act also stipulated that:
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    \1\ The Act authorizes the Administrator of the FAA to retain up 
to 0.5 percent of this amount to fund the award and oversight of 
these grants.
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     The Secretary shall distribute funds provided under this 
heading as discretionary grants to airports;
     The Secretary shall give priority consideration to 
projects at (a) nonprimary airports that are classified as Regional, 
Local, or Basic airports and not located within a Metropolitan or 
Micropolitan Statistical Area as defined by the Office of Management 
and Budget; or (b) primary airports that are classified as Small Hub or 
Nonhub airports; and
     The Federal share payable of the costs for which a grant 
is made under this heading to a nonprimary airport shall be 100 
percent.
    For grants at primary airports, the normal Federal share applies 
based on the airport category and project type.
    The FAA administers the AIP in accordance with FAA Order 5100.38D, 
Airport Improvement Program Handbook.\2\ The AIP Handbook explains what 
types of capital projects may be eligible and justified for AIP funding 
depending on the airport category, project type, and specific category 
or categories of AIP funding to be requested.
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    \2\ Available online at: https://www.faa.gov/airports/aip/aip_handbook/.
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    In addition, the FAA normally relies on the ACIP process \3\ 
outlined in FAA Order 5100.39A, Airports Capital Improvement Plan to 
evaluate and prioritize AIP funding requests, particularly those 
involving discretionary funds. Because of the unique statutory 
requirements associated with the supplemental discretionary funding 
made available by the Act, the FAA is hereby establishing a special 
process for airports to notify the FAA of any associated funding 
requests.
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    \3\ Available online at: https://www.faa.gov/regulations_policies/orders_notices/index.cfm/go/document.information/documentID/12759.
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    The process outlined in this notice relates solely to the selection 
process. All other applicable rules and requirements apply, including, 
but not limited to, the requirements for project eligibility and 
justification, procurement processes, and other requirements as set 
forth in the FAA orders referenced above.
    It is also important to note that this process relates solely to 
the supplemental discretionary funding provided by the Act and does not 
relieve any airport sponsor of its responsibilities under the existing 
ACIP process for any other category of AIP funding. If an airport 
sponsor has properly submitted its AIP funding requests for Fiscal 
Years (FY) 2018-2020 and does not want to be considered for 
supplemental funding, then the airport sponsor does not need to take 
any other steps in response to this notice. Conversely, the process 
outlined in this notice does not take the

[[Page 31835]]

place of the normal ACIP process for regular AIP funding requests for 
FY 2019-2021.
    The FAA anticipates issuing grants from this supplemental funding 
during FYs 2018, 2019, and 2020. However, the FAA cannot predict how 
much of the funding it will obligate in each fiscal year until the FAA 
receives and evaluates the requests from airport sponsors.
    Any airport identified in the National Plan of Integrated Airport 
Systems (NPIAS) report \4\ is eligible to request supplemental 
discretionary funding under the Act. However, as noted above, the Act 
requires the FAA to give ``priority consideration'' to airports meeting 
certain criteria. The FAA has identified the subset of NPIAS airports 
that meet the criteria in the Act. That list is available online at: 
https://www.faa.gov/airports/aip/aip_supplemental_appropriation/. The 
relevant deadlines are:
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    \4\ Available online at: https://www.faa.gov/airports/planning_capacity/npias/reports/media/NPIAS-Report-2017-2021-Appendix-A.xlsx.
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    Deadline #1 (for requests for supplemental funding in FY 2018): By 
August 8, 2018, any airport meeting the criteria for ``priority 
consideration'' is invited to notify the FAA's appropriate Airports 
District Office (ADO) (or regional office (RO) if there is no ADO) of 
the airport's desire to be considered for FY 2018 supplemental 
discretionary funding as provided in the Act.
    In submitting such notifications to the FAA, the airport sponsor 
must include the following information via electronic mail (email):
     Name and official three-letter identifier of the airport, 
its location, and NPIAS number;
     Brief description of the project (no more than 50 words);
     Brief explanation (no more than 500 words) of how the 
project meets the evaluation criteria set forth later in this notice;
     Target timeframe for grant award and construction start; 
\5\ and
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    \5\ This typically refers to the date of ``Notice to Proceed.'' 
The FAA recognizes that in certain types of climate, actual 
construction start may be delayed due to meteorological conditions. 
The FAA also recognizes that some airport sponsors may request 
supplemental funding for equipment acquisition rather than actual 
construction. In such cases, the airport sponsor must provide the 
associated timeline and key milestones.
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     Brief description (no more than 250 words) explaining how 
the airport sponsor is using its available AIP entitlement funds.
    The FAA requires an explanation of how the airport sponsor is using 
its entitlement funds because of a statutory requirement. Title 49 
U.S.C. 47120 stipulates that the FAA ``. . . shall discourage airport 
sponsors and airports from using entitlement funds for lower priority 
projects by giving lower priority to discretionary projects submitted 
by airport sponsors and airports that have used entitlement funds for 
projects that have a lower priority than the projects for which 
discretionary funds are being requested.'' Therefore, as with regular 
AIP discretionary funds, an airport sponsor may request supplemental 
funding even if they are using their entitlements on a lower-priority 
project, but the FAA is required to consider that fact as part of the 
evaluation process.
    If an airport sponsor has already carried over their available 
entitlements in FY 2018, the FAA may still consider a supplemental 
funding request for FY 2018, as long as the airport sponsor provides an 
explanation of their previous decision. The FAA will consider the 
airport sponsor's explanation including the airport sponsor's future 
plans for those funds.
    It is not necessary to submit a completed OMB Form SF 424, 
Application for Federal Assistance, or any other documentation prior to 
Deadline #1. After evaluating all requests, the FAA may encourage an 
airport sponsor to prepare a final grant application if the FAA 
believes the project may compete well. For projects not selected in FY 
2018, the FAA will retain those requests for reconsideration during FY 
2019 or FY 2020.
    For Deadline #1, the FAA will only consider grant applications for 
projects for which airports have already completed all of the required 
planning, airspace reviews, environmental and other permitting 
requirements, and engineering design. In addition, the FAA will only 
consider grant applications for which construction bids will be 
received in time for the airport sponsor to be administratively 
prepared to accept a grant by September 1, 2018, with construction 
starting within 6 months thereafter or no later than March 1, 2019.\6\
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    \6\ Please see footnote 4, which is applicable in this context 
as well.
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    The FAA will consider such requests in conjunction with the FAA's 
existing responsibility to fully obligate all other AIP funds by 
September 30, 2018, generally for projects that airport sponsors had 
previously requested through the ACIP process.
    Deadline #2 (for requests for supplemental funding in FY 2019 or 
2020): By October 31, 2018, any eligible NPIAS airport is invited to 
notify the FAA's appropriate ADO (or RO if there is no ADO) of the 
airport sponsor's desire to be considered for supplemental 
discretionary funding in FY 2019 or FY 2020. The FAA will update the 
list of airports eligible for ``priority consideration'' after 
publishing the next update of the NPIAS Report, which the FAA plans to 
publish in September 2018.
    Based on the funding requests received, the FAA will consider such 
requests with due consideration of the FAA's existing responsibility to 
fully obligate all other available AIP funds by September 30 of each 
fiscal year, generally for projects previously requested through the 
ACIP process.
    In submitting such notifications to the FAA, the airport sponsor 
must include all of the information identified under Deadline #1, plus 
the following additional information:
     Brief explanation (no more than 250 words) explaining the 
status of the proposed project, including whether the project has 
already been approved on the airport's current Airport Layout Plan 
(ALP), the status of related environmental reviews, other required 
permitting, and the level of engineering design completed; and
     For airports that do not meet the criteria for ``priority 
consideration,'' a brief explanation (no more than 500 words) outlining 
why the airport sponsor believes the FAA should consider the project 
for this supplemental funding.
    Airports must submit the preceding information to the appropriate 
ADO or RO via electronic mail in order to facilitate timely review and 
consideration by the FAA. The FAA will consider grant applications for 
projects where the FAA has a high degree of confidence that the airport 
sponsor will be administratively prepared to accept a grant by 
September 1, 2020, or earlier with construction starting within 6 
months thereafter \7\ or no later than March 1, 2021.
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    \7\ See footnote 4, which is applicable in this context as well.
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For Airports in Block Grant States or Channeling Act States

    For nonprimary airports located in block grant states, the airport 
sponsor must also provide a copy of its supplemental discretionary 
funding request to the designated state aeronautical agency. The FAA 
will consult with state aeronautical agencies, as appropriate, before 
making decisions regarding requests from nonprimary airports in each 
state.
    The FAA encourages block-grant states (and states with channeling 
acts regarding Federal funds) to work with

[[Page 31836]]

eligible airport sponsors to coordinate potential funding requests. The 
FAA will consider recommendations from state aeronautical agencies as 
part of the overall evaluation process.

Evaluation Criteria

    The FAA will consider supplemental discretionary funding requests 
based on (but not limited to) the following criteria:
     Eligibility and justification of the project pursuant to 
existing AIP eligibility rules;
     Ability of the project to enhance the long-term economic 
sustainability of the airport; \8\
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    \8\ The FAA encourages airport sponsors to provide some level of 
detail regarding how the project will address unmet aeronautical 
demand, increase aeronautical revenues, reduce future capital or 
operating costs, or otherwise strengthen the airport's financial 
stability (beyond the operational benefits of the immediate proposed 
capital development). Airport sponsors should also demonstrate how 
the proposed project is consistent with the airport's existing 
master plan.
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     The airport sponsor's previous track record in project 
delivery and grant management (including any issues related to the 
airport's existing Federal grant obligations);
     Likelihood of the proposed project to be ready to proceed 
into construction during the same fiscal year as grant award or within 
6 months of grant award; \9\
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    \9\ See footnote 4, which is applicable in this context as well.
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     Ability of the project to compete for regular AIP 
discretionary funding--i.e., FAA may give higher consideration to 
projects that might not otherwise get funded or that might not 
otherwise get funded as soon; and
     For requests from airports that do not meet the statutory 
criteria for ``priority consideration,'' the strength of the 
justification for why the FAA should consider the project.
    Please note that under both deadlines:
     The FAA will not make its conclusions public or announce 
any planned grants from the supplemental funding until after completing 
the required congressional notification for each proposed grant award.
     After evaluating all requests, the FAA may encourage an 
airport sponsor to prepare a final grant application if the FAA 
believes the project may compete well.
     Complete and timely grant applications (OMB Form SF 424, 
including all required information) will still be required as part of 
the final grant application package in accordance with the applicable 
statutory and regulatory requirements.

    Issued in Washington, DC, on July 3, 2018.
Elliott Black,
Director, Office of Airport Planning and Programming, Federal Aviation 
Administration.
[FR Doc. 2018-14675 Filed 7-6-18; 8:45 am]
 BILLING CODE 4910-13-P