Federal Aviation Administration

1. Federal Aviation Administration Airports Division Financial Programs Yampa Valley Reg. Airports Comm. Chris Schaffer, Colorado State Eng. July 14, 2011

2. Airports Financial Programs • Airport Improvement Program (AIP) • Originally authorized by the Airport and Airway Improvement Act of 1982. • Recodified in 1994 and further amended in 1996, 1999, 2000, 2001, 2002, and 2003. • Passenger Facility Charge Program (PFC) • Originally authorized by “the Statute” (49 U.S.C. §40117). • Implemented by 14 C.F.R. Part 158 in 1991.

3. Airport Improvement Program (AIP) • Highest aviation priority of the United States is the safe and secure operation of the airport and airway system. • Broad objective to assist in the development of a nationwide system of public use airports. • Maintain existing airport infrastructure. • Increase the capacity of facilities to accommodate growing traffic demands. • National Plan of Integrated Airport Systems (NPIAS).

4. National Plan of Integrated Airport Systems (NPIAS) • Identified $52B in eligible infrastructure development between 2011 and 2015. • Construction costs estimates rose approx. 5%. • About 60% of the proposed development would rehabilitate existing infrastructure. • Mostly existing pavements. • About 40% of the proposed development would accommodate increased capacity. • Airfield and terminal expansions etc.

5. Typical Development Needs • Runways, Taxiways, and Aprons • New construction • Rehabilitation • Lighting • Marking • Terminals • Roadways • Access roads • Service roads

6. Typical Development Needs • Equipment • Aircraft rescue and fire fighting equipment (ARFF) • Snow removal equipment (SRE) • Storage buildings • Noise Mitigation • Miscellaneous • Land acquisition • Planning • Environmental mitigation

7. Airport and Airway Trust Fund Tax Revenue Summary for the Airport and Airway Trust Fund

8. Authorizations vs. Appropriations • AIP is dependant upon two separate Congressional actions. • Authorization • Gives FAA the authority to use trust fund monies and issue grants for airport development. • Sets the maximum limit of federal participation. • Appropriation • Obligation limitations based on economic considerations. • Appropriations are generally less than authorized levels.

9. Authorizations vs. Appropriations

10. Reauthorization? • Both the House and Senate have passed their respective versions of a reauthorization bill. • Significant differences remain to be resolved in committee. • AIP funding levels. • Fate of the Essential Air Service (EAS) program. • Slot distribution at Washington National Airport. • Changes to air and rail labor laws.

11. Reauthorization? • FAA has not had a steady source of funding for nearly 4 years. • Current legislative authority for the Airport Improvement Program expires on July 22, 2011. • 20th short term continuing resolution since the program expired in 2007. • Approximately 90% of program entitlement funds are currently available.

12. Reauthorization? • Current appropriation for the Airport Improvement Program expires on September 30, 2011. • Provides $3.515B in AIP funding. • Current authorization does not provide sufficient authority for this level of appropriation. • Final authority could be lower than years past. • Be prepared for additional extensions.

13. NPIAS Airports

14. U.S. Airport System

15. Airport Categories

16. AIP Distribution

17. FAA Regions

18. Entitlement Funds • Primary Airports • Entitlements are based upon the number of passenger boardings at the airport. • Minimum $1,000,000 per year. • Maximum $26,000,000 per year. • Yampa Valley Regional (HDN) • Approx. 110,000 enplanements (CY-10). • Approx. $1,350,000 annual entitlement.

19. Entitlement Funds • Non-Primary Airports • Entitlements are calculated as a percentage (20%) of the documented capital needs for the facility. • Maximum $150,000 per year. • Steamboat Springs/Bob Adams Field (SBS) • $150,000 annual entitlement. • Craig/Moffat County Airport (CAG) • $150,000 annual entitlement.

20. AIP Funding History • Yampa Valley Regional (HDN) • 37 AIP grants. • $42,903,825.00 • Steamboat Springs/Bob Adams Field (SBS) • 20 AIP grants. • $9,946,202.00 • Craig-Moffat County (CAG) • 12 AIP grants. • $2,484,767.00

21. Passenger Facility Charge Program (PFC) • Any public agency that controls a commercial service airport, may impose a fee for each enplaned passenger at that facility. • Can choose PFC levels of either $1, $2, $3, $4, or $4.50. • These revenues can be used on eligible projects at any airport controlled by the public agency. • AIP and PFC eligibility rules are generally the same.

22. PFC Related to AIP? • PFC funds are considered a special type of local airport revenue. • PFC funds can be used as the local match on an AIP project. • PFC funds can be used to supplement an AIP project. • PFC funds can be used to pay debt service and financing costs.

23. Local Revenue • Projects funded exclusively with PFC revenue are not subject to certain federal requirements. • Davis-Bacon wage rates. • Disadvantaged Business Enterprise (DBE) goals. • Buy-American requirements. • Uniform Relocation Assistance and Real Property Acquisition Policy Act requirements.

24. PFC Objectives • PFC projects must meet one or more distinct objectives: • Preserve or enhance safety, security, or capacity. • Reduce or mitigate noise impacts. • Furnish enhanced competition among air carriers. • And if approved higher than the $3 level: • The project cannot be reasonably expected to be funded from AIP. • For any landside project, all airside needs must be met first.

25. Small Airport Fund • AIP entitlements at large and medium hub airports imposing a PFC are reduced and the funds returned to the AIP program. • 12.5% to the AIP discretionary fund. • 12.5% to small hub airports. • 25% to general aviation airports. • 50% to non-hub primary airports.

26. PFC Funding History • Yampa Valley Regional (HDN) • 45 projects funded. • $5,386,500.00 • Steamboat Springs/Bob Adams Field (SBS) • 6 projects funded. • $159,575.00