Office of Airport Planning and Programming Airport Improvement Program (AIP) Handbook Rewrite

1. Federal Aviation Administration Office of Airport Planning and Programming Airport Improvement Program (AIP) Handbook Rewrite Prepared for: Airports Division, Eastern Region Annual Conference Hershey, PA Presented by: Nancy S. Williams Office of Airport Planning and Programming Date: March 2, 2011

2. Agenda • Overview of the “AIP Handbook” • What Is It? • Who Uses It? • Why Is It Important? • Why Change It Now? • Process • Timetable

3. What Is It? • FAA Order 5100.38C (“Airport Improvement Program”) • Generally referred to as “the AIP Handbook” • The current “Handbook” is the fourth iteration, starting in 1982 and updated in 1989, 2002, and 2005. • Includes: • Interpretation of legislation • Legislative history • Agency policy • Procedural instructions • Forms and checklists

4. Who Uses It? • FAA Orders traditionally internal documents, but all orders now widely available via the internet, and used by: • FAA Office of Airports management and staff • FAA personnel • Other FAA operational units and staff offices • State aeronautical agencies • Airport sponsors • Consultant community • Audit and oversight agencies • Others

5. Why is it Important?

6. Airport improvement projects Airport & Airway Trust Fund Airport Owner (“Sponsor”) Why is it Important? Ticket-tax revenues

10. Why Change It Now? • Legislative, regulatory and policy changes over the years have led to: • Complex layers of information; • Too many cross-references; • Redundant references; and • Outdated references. • Current version tries to do too much: • Historical interpretation of legislation; • Explanation of policy decisions; and • Policies, procedures and resources.

11. With AIP Handbook updates You are here 2011 2007 Current authorization expired 9/30/2007 History of the Program Aviation Safety and Capacity Expansion Act 1990 Airport and Airway Improve-ment Act 1982 Federal Aviation Reauth. Act 1996 Vision 100 2003 1987 Airport and Airway Safety and Capacity Expansion Act 1992 Airport and Airway Safety, Capacity, Noise Improvement and Intermodal Transportation Act 2000 AIR-21

12. Objectives • Shorter document • Easier to follow • Eliminate redundancy • Clarify what is required and what has flexibility • Minimum number of cross references • Subjects of interest to FAA only (internal document processing) removed and placed in new internal reference system

13. Current Organizational Structure • Basic Handbook • 14 chapters (1,427 numbered paragraphs in 255 pages) • 30 appendices (102 pages) • Broad Sections • Chapters 1-3 – General Chapters • Chapters 4-8 – Eligibility and Allowable Costs of Specific Work Items • Chapters 9-13 – Procurement and Administrative Matters • Chapter 14 – Labor and Civil Rights

14. Future Vision • New Handbook will be organized thematically • Introduction – General program information • Sponsorship – Who can get a grant? • Decision chapter – What are the requirements for project approval? • Allowable Costs – What can a grant pay for? • Procurement and contracting • Special programs – LOI’s, State Block Grants, MAP, etc. • Grant processing – Steps to take for grant agreement, amendment and closeout • Tables of specific eligibility by topic

15. Future Vision (cont’d) • What types of projects are eligible? • How does the FAA determine justification? • What types of costs meet project requirements? • What types of costs are allowable? • Companion Operations Manual that will have the “How To’s”, examples, detailed description of processes, yearly update letters

16. Eligibility Versus Justification • Justification is based on need—established or reasonably forecast aeronautical demand, if FAA concurs. • Projects exceeding standards not funded. • Due to nature of Advisory Circulars, the mere mention of a facility or piece of equipment does not make it justified—the specific airport still has to demonstrate the need. • Projects may be eligible but not justified.

17. Eligible Projects versus Allowable Costs • Eligible means that the project meets the required definitions and criteria for airport development, planning or noise mitigation. • Allowable means that the cost is reasonable and necessary for the successful completion of the project.

18. Allowable Costs • FAA finds cost reasonable and necessary for project accomplishment. • Generally must be incurred after grant award, with some limited exceptions: • Projects funded with entitlements; • Project formulation costs; • Land acquisition; • Noise projects in an approved Part 150 • Design-build projects • Letters of Intent (LOI)

19. Process and Stakeholder Input • Survey sent out to all FAA Airports employees • Scoping meetings held at FAA HQ with upper management • Meetings held in three locations nationally (Eastern Region, Central Region, Western-Pacific Region) with all regions • Pre-review of Handbook held with 6 regional topic experts • Stakeholders contacted for comments and recommendations • Draft of Handbook sent out to FAA Airports employees Fall 2010

20. AIP Handbook Survey

21. Timetable • Comments from FAA employees are being incorporated into the handbook. • Because this is a total rewrite, it will then undergo legal review. • After legal review, the current plan is to make it available for public comment. Goal is Summer 2011 for public review. • Date that it will be available to the public for additional comments and review is dependent on legal review. • Comments from public review will be incorporated, document will undergo full legal sufficiency review and then be approved for use.

22. What’s So Complicated About Updating It? • Fundamental restructuring • Complex relationships with: • NPIAS and ACIP processes • Planning and design standards • Other statutory and regulatory requirements • Environmental and noise program requirements • Passenger Facility Charge (PFC) program • CFR Part 139 (airport certification program) • Number of different project types and airport classifications • Complexity of AIP structure (i.e., subcategories within AIP) • AIP grant assurances

23. MAP 0.9% Capacity-Safety-Security- Reliever Noise (CSSN) 0.2% Remaining Discretionary 10.5% 3.5% Noise 8.1% Primary Entitlements Small Airport Fund 24.7% 14.2% Cargo Entitlements Protected Entitlements 3.5% 13.8% Alaska Supplemental State Apportionment 0.6% 7.9% Nonprimary Entitlements 12.1% What’s So Complicated About Updating It? (cont’d) Data Source: Preliminary FY-2008 data (pending publication).

24. What’s So Complicated About Updating It? (cont’d) • Factors affecting project funding eligibility: • Classification of airport • Type of proposed facility (e.g., runway, taxiway, apron, terminal, lighting, navaids, etc.) • Type of work (e.g., new, expansion, rehabilitation, standards) • Specific categories of AIP funding involved • Timing of project • Location of proposed project

25. Federal Aviation Administration Federal Aviation Administration Questions? Suggestions?