Understanding FAA Grant Assurance Obligations Volume 2: Technical Appendices (2018)

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ACRP Web-Only Document 44: Understanding FAA Grant Assurance Obligations Volume 2: Technical Appendices Barry Molar Unison Consulting, Inc. Chicago, IL James Borsari RS&H Jacksonville, FL Rose Agnew Aviation Innovation St. Paul, MN Firelli Pitters Unison Consulting, Inc. Chicago, IL Technical Appendices for ACRP Project 03-38 Submitted November 2017 ACKNOWLEDGMENT This work was sponsored by the Federal Aviation Administration (FAA). It was conducted through the Airport Cooperative Research Program (ACRP), which is administered by the Transportation Research Board (TRB) of the National Academies of Sciences, Engineering, and Medicine. COPYRIGHT INFORMATION Authors herein are responsible for the authenticity of their materials and for obtaining written permissions from publishers or persons who own the copyright to any previously published or copyrighted material used herein. Cooperative Research Programs (CRP) grants permission to reproduce material in this publication for classroom and not-for-profit purposes. Permission is given with the understanding that none of the material will be used to imply TRB, AASHTO, FAA, FHWA, FMCSA, FRA, FTA, Office of the Assistant Secretary for Research and Technology, PHMSA, or TDC endorsement of a particular product, method, or practice. It is expected that those reproducing the material in this document for educational and not-for-profit uses will give appropriate acknowledgment of the source of any reprinted or reproduced material. For other uses of the material, request permission from CRP. DISCLAIMER The opinions and conclusions expressed or implied in this report are those of the researchers who performed the research. They are not necessarily those of the Transportation Research Board; the National Academies of Sciences, Engineering, and Medicine; or the program sponsors. The information contained in this document was taken directly from the submission of the author(s). This material has not been edited by TRB. i

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C O O P E R A T I V E R E S E A R C H P R O G R A M S ACRP PROJECT 03-38 PANEL Field of Policy and Planning Stephanie A. Ward, Mead & Hunt, Inc., Lansing, MI (Chair) Carol Aldrich, Michigan DOT, Lansing, MI Tim Conway, Montana DOT, Helena, MT Sheri Ernico, Leigh Fisher, Belmont, CA Richard Lanman, Auburn-Lewiston Airport (KLEW), Auburn, ME Thomas P. Thatcher, L. R. Kimball, Stockton, NJ Kathleen A. Yodice, Law Offices of Yodice Associates, Potomac, MD Deandra Brooks, FAA Liaison Sharon Glasgow, FAA Liaison Tom Devine, Industry Liaison Christine Gerencher, TRB Liaison iii

ACRP Project 03-38 (FY 2015) Task 8 Final Technical Appendices Understanding FAA Grant Assurance Obligations Contents iv Contents Introduction ................................................................................................................................................... 1 APPENDIX A, DATA FROM ADMINISTRATIVE DETERMINATIONS, OPINIONS AND MEMORANDA, AND JUDICIAL DECISIONS..................................................................................... A-1 Section A.1 Summary of Data from the Review of Administrative Determinations ................................ A-1 Section A.2 FAA and DOT Opinion Letters and Memoranda .................................................................. A-6 Section A.3 Judicial Decisions (LRD 13) ............................................................................................... A-10 APPENDIX B, AIP SPONSOR ASSURANCES ..................................................................................... B-1 APPENDIX C, GRANT ASSURANCE RESOURCES AND REFERENCES ....................................... C-1 Section C-1 Generally Applicable Grant Assurances ............................................................................... C-1 C-1.1 Grant Assurance 1, General Federal Requirements .................................................................. C-1 C-1.2 Grant Assurance 4, Good Title ................................................................................................. C-2 C-1.3 Grant Assurance 5, Preserving Rights and Powers .................................................................. C-2 C-1.4 Grant Assurance 11, Pavement Preventive Maintenance ......................................................... C-3 C-1.5 Grant Assurance 19, Operation and Maintenance .................................................................... C-3 C-1.6 Grant Assurance 20, Hazard Removal and Mitigation ............................................................. C-4 C-1.7 Grant Assurance 21, Compatible Land Use ............................................................................. C-4 C-1.8 Grant Assurance 22, Economic Non-Discrimination ............................................................... C-5 C-1.9 Grant Assurance 23, Exclusive Rights ..................................................................................... C-9 C-1.10 Grant Assurance 24, Fee and Rental Structure ....................................................................... C-9 C-1.11 Grant Assurance 25, Airport Revenues ................................................................................ C-10 C-1.12 Grant Assurance 26, Reports and Inspections, clauses a. and d. .......................................... C-11 C-1.13 Grant Assurance 27, Use by Government Aircraft ............................................................... C-11 C-1.14 Grant Assurance 28, Land for Federal Facilities .................................................................. C-11 C-1.15 Grant Assurance 29, Airport Layout Plan ............................................................................ C-11 C-1.16 Grant Assurance 30, Civil Rights ......................................................................................... C-12 C-1.17 Grant Assurance 31, Disposal of Land ................................................................................. C-12 C-1.18 Grant Assurance 36, Access by Intercity Busses.................................................................... C-13

ACRP Project 03-38 (FY 2015) Task 8 Final Technical Appendices Understanding FAA Grant Assurance Obligations Contents v C-1.19 Grant Assurance 37, Disadvantaged Business Enterprises (ACDBE Program) ................... C-13 C-1.20 Grant Assurance 38, Hangar Construction ........................................................................... C-13 C-1.20 Grant Assurance 39, Competitive Access ............................................................................ C-13 Section C-2 Project Specific Grant Assurances ...................................................................................... C-13 C-2.1 Grant Assurance 1, General Federal Requirements ................................................................ C-13 C-2.2 Grant Assurance 2, Responsibility and Authority of Sponsor ................................................ C-14 C-2.3 Grant Assurance 3, Sponsor Fund Availability ...................................................................... C-14 C-2.4 Grant Assurance 6, Consistency with Local Plans ................................................................. C-14 C-2.5 Grant Assurance 7 Consideration of Local Interest ................................................................ C-14 C-2.6 Grant Assurance 8, Consultation with Users .......................................................................... C-14 C-2.7 Grant Assurance 9, Public Hearings ....................................................................................... C-14 C-2.8 Grant Assurance 10, Metropolitan Planning Organizations ................................................... C-15 C-2.9 Grant Assurance 12, Terminal Development Prerequisites .................................................... C-15 C-2.10 Grant Assurance 13, Accounting System, Audit and Record Keeping Requirements ......... C-15 C-2.11 Grant Assurance 14, Minimum Wage Rates ........................................................................ C-15 C-2.12 Grant Assurance 15, Veteran’s Preference ........................................................................... C-15 C-2.13 Grant Assurance 16, Conformity to Plans and Specifications .............................................. C-16 C-2.14 Grant Assurance 17, Construction Inspection and Approval ............................................... C-16 C-2.15 Grant Assurance 18, Planning Projects ................................................................................ C-16 C-2.16 Grant Assurance 26, Reports and Inspections (Project Specific) ......................................... C-16 C-2.17 Grant Assurance 32, Engineering and Design Services ....................................................... C-16 C-2.18 Grant Assurance 33, Foreign Market Restrictions ............................................................... C-16 C-2.19 Grant Assurance 34, Policies, Standards and Specifications ................................................ C-17 C-2.20 Grant Assurance. 35 Relocation and Real Property Acquisition .......................................... C-17 C-2.21 Grant Assurance 37, Disadvantaged Business Enterprise (DBE Program) .......................... C-17 APPENDIX D, AIRPORTS DESIGNATED BY THE FAA AS “GRANDFATHERED” UNDER GRANT ASSURANCE 25, AIRPORT REVENUES .............................................................................. D-1 APPENDIX E, EXPANDED LIST OF QUESTIONS AND ANSWERS RELATING TO GRANT ASSURANCE COMPLIANCE ................................................................................................................ E-1 Section E-1 Introduction ........................................................................................................................... E-1 Section E-2 General .................................................................................................................................. E-2 Section E-3 Grant Assurance 1, General Federal Requirements .............................................................. E-3

ACRP Project 03-38 (FY 2015) Task 8 Final Technical Appendices Understanding FAA Grant Assurance Obligations Contents vi E-3.1 General ...................................................................................................................................... E-3 E-3.2 Grant Assurance 1, 49 CFR Part 23, Participation by Disadvantage Business Enterprises in Airport Concessions; Grant Assurance 37 (as Applied to Airport Concession Disadvantaged Business Enterprises (ACDBEs)) ...................................................................................................................... E-3 Section E-4 Grant Assurance 2, Legal Authority...................................................................................... E-4 Section E-5 Grant Assurance 5, Preserving Rights and Powers ............................................................... E-4 E-5.1 General ...................................................................................................................................... E-4 E-5.2 Through-The-Fence (TTF) Operations (Grant Assurance 5.g) (Q & As Include Residential and Commercial TTF) ............................................................................................................................... E-6 E-6 Grant Assurance 6, Consistency With Local Plans ............................................................................ E-7 E-7 Grant Assurance 7, Consideration of Local Interest .......................................................................... E-8 E-8 Grant Assurance 8, Consultation with Users ..................................................................................... E-8 E-9 Grant Assurance 16, Conformity to Plans and Specifications ........................................................... E-9 E-10 Assurance 19, Operation and Maintenance ...................................................................................... E-9 E-11 Grant Assurance 20, Hazard Removal and Mitigation ................................................................... E-11 E-12 Grant Assurance 21, Compatible Land Use ................................................................................... E-12 E-13 Grant Assurance 22, Economic Nondiscrimination ....................................................................... E-13 E-13.1 Leasing and Lease Terms (Grant Assurance 22.a) ............................................................... E-13 E-13.2 Access and Use of Airport (Grant Assurance 22.a) .............................................................. E-19 E-13.3 Requirement for Commercial Operators to Offer Services on Reasonable Terms (Grant Assurance 22.b) ................................................................................................................................ E-21 E-13.4 Fees and Charges (Grant Assurance 22.c, 22.e.). (Specific Questions Arising Under the DOT/FAA Rates and Charges Policy are Addressed Under Grant Assurance 24, Fee and Rental Structure) .......................................................................................................................................... E-22 E-13.5 The Right to Self-Service and Self-Fuel (Grant Assurance 22.d, 22.f) ................................ E-26 E-13.6 Minimum Standards, Rules and Regulations (Grant Assurance 22.h) ................................. E-30 E-13.7 Prohibition or Limitations on Use for Safety and Efficiency (Grant Assurance 22.i) .......... E-35 E-14 Grant Assurance 23, Exclusive Rights ........................................................................................... E-36 E-15 Grant Assurance 24, Fee and Rental Structure ............................................................................... E-42 E-16 Grant Assurance 25, Airport Revenues .......................................................................................... E-46 E-17 Grant Assurance 26, Reports and Inspections ................................................................................ E-50 E-18 Grant Assurance 27, Use by Government Aircraft ........................................................................ E-50 E-19 Grant Assurance 29, Airport Layout Plan ...................................................................................... E-51 E-20 Grant Assurance, 30 Civil Rights ................................................................................................... E-52 E-21 Grant Assurance 31, Disposal of Land ........................................................................................... E-53

ACRP Project 03-38 (FY 2015) Task 8 Final Technical Appendices Understanding FAA Grant Assurance Obligations Contents vii E-22 Grant Assurance 34, FAA Standards and Specifications ............................................................... E-53 E-23 Grant Assurance 35 Relocation Assistance .................................................................................... E-54 E-24 Grant Assurance 37 Disadvantaged Business Enterprise ............................................................... E-54 E-25 Grant Assurance 38 Hangar Construction ...................................................................................... E-55 E-26 Assurance 39 Competitive Access ................................................................................................. E-56 E-27 Administrative Process (49 CFR Part 13 and Part 16, 49 USC §47129) ....................................... E-56 E-28 Federal Preemption ........................................................................................................................ E-63 APPENDIX F, SYNOPSIS OF RESOURCES AND REFERENCES ..................................................... F-1 Section F-1 Introduction ........................................................................................................................... F-1 Section F-2 Synopses of FAA Resource Documents ................................................................................ F-1 F-2.1 Airport Compliance Manual, Order 5190.6B ........................................................................... F-1 F-2.2 Other National Guidance Documents ....................................................................................... F-2 F-2.3 Regional Compliance Guidance ............................................................................................. F-19 Section F-3, Synopses of ACRP Publications ........................................................................................ F-21 Section F-4, Synopses of Other Publications .......................................................................................... F-34 Section F-5 Order 5190.6B Table of Contents ....................................................................................... F-39 Figures Figure A-1, Distribution of Cases With and Without Violations .............................................................. A-2 Figure A-2, Distribution of Specific Grant Assurance Requirements in Complaints/Investigations ....... A-3 Figure A-3, Distribution of Findings of Violations of Specific Grant Assurance Requirements ............. A-4 Figure A-4, Distribution of Determinations in Opinion Letters and Memoranda .................................... A-7 Figure A-5, Distribution of Specific Grant Assurance Requirements Considered in Opinions ................ A-7 Figure A-6, Distribution of Findings of Violations of Specific Grant Assurances in Opinions ............... A-8 Figure A-7, Distribution of Uncertain/Mixed Opinions Regarding Specific Grant Assurances ............... A-9 Figure A-8, Distribution of Judicial Decisions Related to Grant Assurances ......................................... A-11 Figure A-9, Distribution of Specific Grant Assurance Requirements Considered in Decisions ............ A-12 Figure A-10, Distribution of Findings of Violations of Specific Grant Assurances in Decisions .......... A-13

ACRP Project 03-38 (FY 2015) Task 8 Final Technical Appendices Understanding FAA Grant Assurance Obligations Contents viii Tables Table A-1, Tally of Issues and Violations in Administrative Decisions ................................................... A-5  Table A-2, Tally of Issues and Violations in Opinions and Memoranda ................................................ A-10  Table A-3, Tally of Issues and Violations in Judicial Decisions Related to Grant Assurances .............. A-14  Table F-1, Summary of National FAA Grant Assurance Compliance Guidance ..................................... F-3  Table F-2, Synopsis of FAA Regional Guidance on Grant Assurance Requirements ............................ F-20  Table F-3, Synopses of ACRP Publications with Information About Grant Assurance Requirements.. F-22  Table F-4, Summary of Other Publications Reviewed ........................................................................... F-35