Understanding FAA Grant Assurance Obligations Volume 4: Summary of AIP Grant Assurance Requirements (2018)

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General Requirements for Operations, Management,  Finance • Airport Access, Leasing and User Relations o GA 22.a‐22.i, Economic Non‐Discrimination (including individual clauses) o GA 23, Exclusive Rights o GA 36, Access by Intercity Busses o GA 38, Hangar Construction o GA 39, Competitive Access • Finance and Revenue o GA 24, Fee and Rental Structure o GA 24, Air Service Incentive Programs o GA 25, Airport Revenues o GA 25, Mineral Revenue Exception o GA 26.a, d Reports and Inspections 15

General Requirements for Operations,  Management, Finance • Operations and Safety o GA 19, Operations and Maintenance o GA 20, Hazard Removal and Mitigation o GA 21 Compatible Land Use o GA 29 Airport Layout Plan o GA 30, Civil Rights o GA 37, Disadvantaged Business Enterprises 16

General Requirements for Operations,  Management, Finance • Ownership and Control o GA 4, Good Title o GA 5.a, b, e, f, Preserving Rights and Powers (General Requirements) o GA 5.c, d, Preserving Rights and Powers (Noise Compatibility) o GA 5.g, Preserving Rights and Powers (TTF Access) o GA 31.a, Disposal of Land (Noise Compatibility) o GA 31.b, Disposal of Land (Airport Development) • Federal Aircraft and Federal Facilities • GA 27, Use by Government Aircraft • GA 28, Land for Federal Facilities 17

Airport Access, Leasing & User Relations  GA 22.a‐22.i Economic  Nondiscrimination GA 23 Exclusive Rights GA 36 Access by Intercity  Busses GA 38 Hangar  Construction GA 39 Competitive  Access 18

Grant Assurance 22.a Economic  Nondiscrimination (General) Requires Sponsors to provide access to aeronautical users on  reasonable terms without unjust discrimination.  Users who are  similarly situatedmust be treated in the same manner. What Must the Sponsor Do? (Subject to exceptions and permitted practices noted in next slides) Permit all aircraft operators and other aeronautical users (e.g. gliders, skydivers) to use the airport, unless there is a reasonable justification to prohibit certain uses based on safety or the civil aviation needs of the public. Provide space for commercial operators desiring to establish their business at the airport. 19

Grant Assurance 22.a Economic  Nondiscrimination (General) 20 What May the Sponsor Do? Charge reasonable and not unjustly discriminatory fees and rents. Establish reasonable rules and regulations for use of the airport. Establish reasonable and not unjustly discriminatory minimum standards for aeronautical businesses. A Sponsor may engage in a reasonable planning/development process to develop rules, regulations, rates and charges, processes and plans etc., before granting a request for access, or for a lease; however, the FAA has held that lengthy delays that result from a perpetual review process deny access in violation of Grant Assurance 22.a.

Grant Assurance 22.a Economic  Nondiscrimination (General) 21 What Sponsor Actions Are Prohibited? Denying use of the airport without reasonable justification. Charging excessive or unjustly discriminatory fees. Denying aeronautical businesses space at the airport without reasonable justification.

Grant Assurance 22.a Economic  Nondiscrimination (General) 22 What are the Exceptions to the Requirements/Prohibitions? The Sponsor may restrict or deny access if required for safety or civil aviation needs, subject to the determination of the FAA. A Sponsor need not grant an aeronautical business the right to operate if suitable space is not available. A Sponsor exercising proprietary rights to be the exclusive provider of aeronautical services need not grant a competing business the right to operate. A Sponsor need not grant a right of access to taxi aircraft onto the airfield from adjacent property (through the fence, or TTF, access).

Grant Assurance 22.b, reasonable and  nondiscriminatory service by commercial operators Sponsors must require commercial aeronautical firms to provide  services on reasonable and not unjustly discriminatory terms 23 What Must the Sponsor Do? (Subject to exceptions and permitted practices, below) Establish a legally enforceable obligation for all aeronautical service providers to treat their customers reasonably and without unjust discrimination, including charging reasonable and not unjustly discriminatory fees. Monitor compliance and enforce the requirement, if needed.

Grant Assurance 22.b, reasonable and  nondiscriminatory service by commercial operators 24 What May the Sponsor Do? Select the method of establishing the legally enforceable obligation, including lease terms, permit language, minimum standards, and rules and regulations applicable to aeronautical service providers. Select the method for monitoring and enforcement, as long as it is effective. Permit aeronautical service providers to offer volume discounts.

Grant Assurance 22.b, reasonable and  nondiscriminatory service by commercial operators What Sponsor Actions Are Prohibited? Failing to obligate all aeronautical service providers to comply with the requirement. Failing to enforce the obligation. What are the Exceptions to the Requirements/Prohibitions? None. 25

GA 22.c, FBO Fees and Charges  Sponsors must charge similarly situated FBOs the same fees and  charges, which must be reasonable.  FBOs that are not similarly  situatedmay be charged differently. What Must the Sponsor Do? (Subject to exceptions and permitted practices noted in next slides) Charge the same rates, fees and rentals to FBOs who are similarly situated. 26

GA 22.c, FBO Fees and Charges  27 What May the Sponsor Do? Select the method of establishing rates, fees and charges for FBOs, as long as the result is reasonable and applied consistently to similarly situated FBOs. Establish fees based on current conditions and circumstances when executing new leases, as long as it does so on a consistent basis, even if those fees differ from those in older leases. Charge different rates, fees and charges to FBOs that are not similarly situated. Choose the economic index used as a basis for escalation clauses in long-term FBO leases.

GA 22.c, FBO Fees and Charges  28 What Sponsor Actions Are Prohibited? Failing to charge the same rates, fees and charges to FBOs that are similarly situated. What Are the Exceptions to the Requirements/Prohibitions? FBOs that are not similarly situated may be charged differently.

GA 22.d, Air Carrier Servicing Air carriers have a right to self‐service their aircraft or use  any authorized service provider at the airport. What Must the Sponsor Do? (Subject to exceptions and permitted practices noted in next slides) Permit air carriers to self-service using their own employees and equipment. Permit an air carrier to use any FBO authorized to provide the specific services the air carrier desires. 29

GA 22.d, Air Carrier Servicing 30 What May the Sponsor Do? Establish reasonable and not unjustly discriminatory minimum standards for FBOs providing services to air carriers. Establish reasonable and not unjustly discriminatory standards, regulations and conditions for air carriers that self-service. If exercising a “proprietary exclusive” (see Grant Assurance 23, Exclusive Rights), require the air carrier to choose between self-service, or using the Sponsor’s FBO services. Enforce the requirement that an air carrier claiming self-service rights use its own employees and equipment.

GA 22.d, Air Carrier Servicing 31 What Sponsor Actions Are Prohibited? Prohibiting, or otherwise preventing, an air carrier from self-service with its own employees and equipment. If multiple FBOs are authorized to provide a particular service to air carriers, preventing the air carrier from choosing its preferred provider for that service. What Are the Exceptions to the Requirements/Prohibitions? None.

GA 22.e, Air Carrier Rules, Regulations,  Conditions and Rates Air carriers making similar use of similar facilities must be subject to  comparable rules, regulations, conditions and rates, but a Sponsor may  make reasonable classifications such as signatory/nonsignatory or  tenant/non‐tenant and treat the classes differently. 32 What Must the Sponsor Do? (Subject to exceptions and permitted practices noted in next slides) Provide substantially comparable rules, regulations, conditions, rates, fees, rentals, and other charges to all carriers making similar use of the airport, and using similar facilities. Grant signatory or tenant status to any air carrier that is willing to assume the obligations imposed on current signatory or tenant carriers. This requirement applies even if the Sponsor has no available space to lease to a would-be signatory or tenant.

GA 22.e, Air Carrier Rules, Regulations,  Conditions and Rates 33 What May the Sponsor Do? Establish classifications, such as signatory or tenant, and differentiate between members of these classes and non-members. In particular, a Sponsor may charge a premium to non-members, subject to the other provisions of Grant Assurance 22 and Grant Assurance 24. Establish reasonable and not unjustly discriminatory requirements to qualify for these classifications.

GA 22.e, Air Carrier Rules, Regulations,  Conditions and Rates 34 What Sponsor Actions Are Prohibited? Charging different rates, or imposing different rules to similarly situated carriers, other than establishing reasonable classifications. Denying preferred status to an air carrier that assumes substantially similar obligations to carriers with preferred status. What Are the Exceptions to the Requirements/Prohibitions? There is no requirement to grant signatory or tenant status to a carrier that is not willing to assume the obligations associated with that status.

GA 22.f Aircraft Owner/Operator Self‐Service Aircraft owners/operators have the right to self‐service their aircraft  with their own employees and equipment, even if the sponsor is  providing commercial aeronautical services. What Must the Sponsor Do? (Subject to exceptions and permitted practices noted in next slides) Permit aircraft owners/operators to self-service their aircraft, including self-fueling, with their own employees and equipment. If restrictions on self-service activities in storage hangars are adopted, provide a space on the airport for those activities to take place. If the FAA has reviewed a particular requirement or restriction for safety or civil aviation needs, implement FAA’s determination. 35

GA 22.f Aircraft Owner/Operator Self‐Service 36 What May the Sponsor Do? Establish reasonable rules, requirements or restrictions for self-service, provided that in the event of a dispute, an FAA determination on whether a rule, requirement or restriction is needed for safety or civil aviation needs is controlling. Require self-fuelers to pay the same fuel flowage fee to the airport that patrons of commercial fuel vendors pay. Specify particular areas of the airport for self-service activity. Require self-fuelers to store fuel in the area of the airport designated for fuel farms, rather than on individual leaseholds. Enforce local fire codes, as applicable, to self-service and self-fueling. Prevent an aircraft owner/operator from relying on the self-service right to use third parties who are not authorized to provide commercial aeronautical services on the airport.

GA 22.f Aircraft Owner/Operator Self‐Service 37 What Sponsor Actions Are Prohibited? Prohibiting, or otherwise preventing, an aircraft owner or operator from self-service with its own employees and equipment. Applying different rules, regulations or conditions to similarly situated aircraft owners/operators performing the same self-service activities. What Are the exceptions to the Requirements/Prohibitions? There is no requirement to permit self-service activity that is not consistent with reasonable airport rules, regulations, and the airport’s approved ALP; however, in any dispute over the safety or the civil aviation needs justification for a restriction, the FAA’s determination takes precedence.

GA 22.g, Sponsor Commercial Services  (Proprietary Rights) A Sponsor providing commercial aeronautical services directly to the public  (exercising proprietary rights) must do so under the same conditions that would  apply to any other provider. 38 What Must the Sponsor Do? (Subject to exceptions and permitted practices noted in next slides) Apply the same standards and conditions to its own commercial aeronautical services as it does to similarly situated third-parties providing the same services, except as noted below. If the Sponsor is offering commercial services in competition with third parties, permit aeronautical users to choose the authorized service provider they use. Provide the services on reasonable terms, without unjust discrimination.

GA 22.g, Sponsor Commercial Services  (Proprietary Rights) 39 What May the Sponsor Do? If providing commercial aeronautical services on an exclusive basis, subsidize the commercial aeronautical operations with other aeronautical revenue, if necessary, to assure that services are available. Choose to provide any commercial aeronautical services directly, with its own employees and equipment, on an exclusive basis, or in competition with third parties, as long as the services are provided under the same conditions as would apply to other aeronautical service providers.

GA 22.g, Sponsor Commercial Services  (Proprietary Rights) 40 What Sponsor Actions Are Prohibited? Using other aeronautical revenues to subsidize its commercial aeronautical operations, if it is in competition with third parties. Providing the services in an unreasonable or unjustly discriminatory manner, and charging unreasonable or unjustly discriminatory rates, fees or charges. Contracting out commercial aeronautical services and then relying on the proprietary exclusive to prohibit competition. What Are the Exceptions to the Requirements/Prohibitions? There are no specific exceptions.

GA 22.h, Reasonable Conditions for Safety and  Efficiency A Sponsor may make reasonable and not unjustly discriminatory rules,  regulations and minimum standards for the safety and efficiency of the  airport.  However, if a dispute arises, the FAA makes the final determination  on whether the requirement is needed. 41 What Must the Sponsor Do? (Subject to exceptions and permitted practices noted in next slides) Assure that rules, regulations and minimum standards are appropriate to the activity to which they apply. Apply rules, regulations and minimum standards consistently to similarly situated aeronautical users. In the event of a dispute, follow the FAA’s determination on whether the rule, regulation or minimum standard is required for safety or civil aviation needs.

GA 22.h, Reasonable Conditions for Safety and  Efficiency 42 What May the Sponsor Do? Choose the method of establishing standards and requirements, i.e. rules, regulations, minimum standards, or operating conditions, etc. Permit a bona fide flying club to operate without meeting commercial FBO minimum standards, if the club meets FAA specified requirements. The requirements are specified in the Common Questions Section.

GA 22.h, Reasonable Conditions for Safety and  Efficiency 43 What Sponsor Actions Are Prohibited? Applying the same set of requirements to full service FBOs and SASOs without accounting for the differences in services or service levels. Enforcing rules, regulations, or minimum standards inconsistently to similarly situated aeronautical users. Establishing a standard or rule that cannot be achieved.

GA 22.h, Reasonable Conditions for Safety and  Efficiency 44 What Are the Exceptions to the Requirements/Prohibitions? There is no inherent requirement in Grant Assurance 22.h. to adopt rules, regulations or minimum standards; however, the failure to do so could result in a violation of other assurances, e.g. Grant Assurance 5, Preserving Rights and Powers, or Grant Assurance 19, Operations and Maintenance, and could increase the risk of complaints about violations of other clauses in Grant Assurance 22.

GA 22.i, Access Restrictions for Safe Operation  or Civil Aviation Needs A Sponsor may prohibit specific aeronautical activities if needed for safety or  to assure the airport meets civil aviation needs. However, if a dispute arises,  the FAA makes the final determination on whether the prohibition is needed. What Must the Sponsor Do? (Subject to exceptions and permitted practices noted in next slides) Follow any FAA determination on whether a particular prohibition or restriction is required for safety or civil aviation needs in the event of a dispute. 45

GA 22.i, Access Restrictions for Safe Operation  or Civil Aviation Needs 46 What May the Sponsor Do? Prohibit a particular aeronautical activity, if justified for safety or civil aviation needs, subject to any determination by the FAA. If the FAA determines that an activity can be accommodated, subject to certain restrictions, the Sponsor must allow the activity, subject to those restrictions. Restrict a particular activity to a particular part of the airport, time of day, or otherwise, if necessary for safety or civil aviation needs, subject to any determination by the FAA. Prohibit through-the-fence (TTF) taxiing of aircraft onto the airfield because the FAA does not consider this TTF activity to be protected by the Grant Assurances.

GA 22.i, Access Restrictions for Safe Operation  or Civil Aviation Needs 47 What Sponsor Actions Are Prohibited? Applying an access prohibition on an inconsistent basis, absent a legitimate reason (i.e., permitting a specific operation or activity by some users, but not by others). Prohibiting a particular activity after the FAA has determined that it can be accommodated safely and without compromising civil aviation needs. What Are the Exceptions to the Requirements/Prohibitions? There is no inherent requirement in Grant Assurance 22.i to prohibit or restrict any particular aeronautical activity; however, failure to do so in the case of an activity that poses a genuine safety risk, or that prevents the airport from meeting civil aviation needs of the public, could result in a violation of other assurances, e.g., Grant Assurance 5, Preserving Rights and Powers, or Grant Assurance 19, Operations and Maintenance.

GA 23, Exclusive Rights A Sponsor may not grant, directly or indirectly, an exclusive right to  provide aeronautical services or conduct aeronautical activities.  This  requirement lasts indefinitely, i.e. as long as the airport is operating. What Must the Sponsor Do? (Subject to exceptions and permitted practices noted in next slides) Permit qualified commercial aeronautical service providers to operate at the airport when space is available, and they meet any applicable Sponsor requirements for operation. Avoid imposing conditions or restrictions that effectively grant an exclusive right to conduct any aeronautical activity. 48

GA 23, Exclusive Rights 49 What May the Sponsor Do? Provide commercial aeronautical services directly, with its own employees and equipment, under the proprietary exclusive right, and deny the right to operate to would- be competitors. The exercise of this proprietary exclusive right is subject to the requirement in Grant Assurance 22.d and 22.f to permit air carriers and other aircraft owners/operators to self-service and self-fuel their aircraft. Limit services to a single FBO if it would be impractical, unreasonable or unduly burdensome to permit more than one FBO to operate, and doing so would require a reduction in space currently leased by the single FBO. If the Sponsor’s goal is to promote competition at the airport, it may limit solicitation for new services or new aeronautical leases to new entrants. When presented with an unsolicited proposal to introduce competitive aeronautical services, the Sponsor may choose between negotiating with the proposer, or using a competitive selection process.

GA 23, Exclusive Rights 50 What Sponsor Actions Are Prohibited? Providing explicit, contractual, exclusive rights. Granting a right of first refusal, or similar right that would allow an incumbent to protect itself from competition. Using unreasonable rules, minimum standards, actions, processes or procedures to prevent a new entrant from coming onto the airport. Granting third-party exclusive rights to provide aeronautical services as an “agent” of the Sponsor, under the proprietary exclusive rights exception. What Are the Exceptions to the Requirements/Prohibitions? A Sponsor may choose to exercise its proprietary right to offer commercial aeronautical services directly to the public, with its own employees and its own equipment, and exclude competing commercial operators.

GA 36, Access by Intercity Buses A Sponsor must provide access to the airport by intercity  buses, but it is not required to construct facilities, and it may  charge for access. 51 What Must the Sponsor Do? (Subject to exceptions and permitted practices noted in next slides) Provide a location on the airport for intercity buses to pick up and drop off passengers, to the maximum extent practicable.

GA 36, Access by Intercity Buses 52 What May the Sponsor Do? Require the intercity bus operator to pay for, or construct, any facilities that it uses, including shelters and signage. Charge an access fee to intercity bus operators to help defray the costs of operating at the airport, and the cost of any facilities built by the Sponsor to serve the intercity bus operators. Designate the location where intercity buses may pick up and drop off, based on considerations of vehicle traffic management, passenger convenience, or other factors typically considered in locating access points for ground transportation service providers.

GA 36, Access by Intercity Buses 53 What Sponsor Actions Are Prohibited? Refusing access to intercity bus operators, when it would be practicable to provide it. What Are the Exceptions to the Requirements/Prohibitions? The obligation applies only to the extent that it is practicable to provide access. The Sponsor is not required to fund any special facilities needed to accommodate intercity buses.

GA 38, Hangar Construction If a Sponsor permits an aircraft owner to construct a hanger on its airport, it must  grant a long‐term lease, subject to terms and conditions that comply with the  remaining Grant Assurances. GA 38 does not itself require a Sponsor to permit hangar construction, but a request  for hangar construction is subject to GA 22, Economic Nondiscrimination. What Must the Sponsor Do? (Subject to exceptions and permitted practices noted in following slides) Provide a long-term lease, once it decides to permit an aircraft owner/operator to build a hangar on airport property. 54

GA 38, Hangar Construction What May the Sponsor Do? Choose the location and specify reasonable terms and conditions, including construction standards, subject to the requirements of Grant Assurance 22, Economic Nondiscrimination. Charge a reasonable ground rent for the site of the hangar. Under Grant Assurance 38, there is no requirement to permit construction of the hangar, but a refusal could be reviewable by the FAA under Grant Assurance 22. 55

GA 38, Hangar Construction 56 What Sponsor Actions Are Prohibited? Refusing to offer a long-term lease, once it has decided to permit a hangar to be constructed. What Are the Exceptions to the Requirements/Prohibitions? There are no exceptions. However, Grant Assurance 38 does not itself create an obligation to permit hangar construction.

GA 39, Competitive Access If a medium or large hub airport is unable to provide  access to gates or other facilities to an air carrier,  the Sponsor must submit a report to the FAA. Reports must be filed every six months until the  carrier is accommodated. 57

GA 39, Competitive Access 58 What Must the Sponsor Do? (Subject to exceptions and permitted practices noted in following slides) Submit the report with the required information, after the initial failure to accommodate an air carrier, and continue to file periodic reports (due every February and August) until the air carrier is accommodated. This Grant Assurance itself does not require accommodation. It is a simple reporting requirement. Grant Assurance 22, Economic Nondiscrimination addresses accommodation itself. What May the Sponsor Do? Offer accommodation through a lease of gates, if vacant gates are available, through access to common-use gates, or through facilitating subleasing or gate sharing arrangements. Charge reasonable fees, and apply the same rules, regulations, terms, or conditions as it does to other similarly situated air carriers.

GA 39, Competitive Access 59 What Sponsor Actions Are Prohibited? Failing to file required reports after an air carrier has not been accommodated. What are the Exceptions to the Requirements/Prohibitions? The requirement does not apply to airports other than medium and large hub airports.

Finance and Revenue GA 24, Fee and  Rental Structure GA 24, Air  Service Incentive  Programs GA 25, Airport  Revenues GA 25, Mineral  Revenue  Exception GA 26.a, d,  Reports and  Inspections 60

GA 24, Fee and Rental Structure  Sponsors are required to have a fee and rental structure that will  make the airport as self‐sustaining as possible under the airport’s  circumstances.  The fee structure must also be reasonable, without  unjust discrimination. The FAA recognizes that at some airports (especially low activity  airports), it may not be feasible to set fees high enough to be self‐ sustaining while also assuring that the airport can offer the  aeronautical services that users require. 61

GA 24, Fee and Rental Structure 62 What Must the Sponsor Do? (Subject to exceptions and permitted practices noted in following slides) Absent agreement with users, use historic costs to set charges for the use of runways, taxiways and public-use aprons. Set fees for non-aeronautical use based on fair market value (FMV). Charge like fees to similarly situated users. Absent agreement with users, follow the guidance in the Rates and Charges Policy in establishing aeronautical fees, in particular fees for the airfield. In a rates and charges dispute under 49 USC §47129 obtain a letter of credit or other credit facility covering the amount in dispute.

GA 24, Fee and Rental Structure 63 What May the Sponsor Do? Negotiate with users for alternate fee arrangements that adhere to the Rates and Charges Policy. The FAA considers fees reached by agreement to be inherently reasonable unless they unjustly discriminate against users who are not party to the agreement. For aeronautical uses other than the airfield itself, charge up to FMV, so long as the charge recovers the users’ fair share of the costs of the airport facilities and services and does not unjustly discriminate against other users. Select the charging basis (landing fees, terminal rents, ground rents, fuel flowage fees, etc.) for particular users or uses that will achieve economy of collection. For example, fuel flowage fees are often used as the basis for charging transient general aviation users. Set fees by ordinance or regulation, after engaging in meaningful consultation with users. The Rates and Charges Policy includes guidance on FAA criteria for meaningful consultation.

GA 24, Fee and Rental Structure 64 What Sponsor Actions Are Prohibited? Including the cost of AIP- or PFC-financed facilities in the rate base used to establish charges. There is an exception for PFC-financed terminal facilities when excluding the PFC-funded costs would give the users of the PFC-financed facilities a competitive advantage over the users of comparable non-PFC financed facilities. Charging less than FMV for non-aeronautical use, subject to the exceptions below. Absent agreement with the users, using FMV accounting to establish charges for the use of the airfield.

GA 24, Fee and Rental Structure 65 What Are the Exceptions to the Requirements/Prohibitions? The Sponsor of a low activity airport may charge fees that are less than needed to fully recover the costs of the airport, if break-even fees would not be affordable to commercial aeronautical service providers and other tenants given the low level of activity. In this situation, however, the FAA encourages Sponsors to develop a long-term plan to enhance revenue. A Sponsor may charge nominal or reduced rates for certain uses, described more fully in the FAA Policy and Procedures Concerning the Use of Airport Revenue, 64 FR 7696 (February 16, 1999) (Airport Revenue Policy). A Sponsor must permit federal government aircraft to use the airfield at no charge unless the operations represent substantial use. This requirement is discussed more fully in the summary for Grant Assurance 27. This requirement only applies to aircraft operations, not the leasing of airport property by government agencies. A Sponsor of a “congested airport”, as defined by the FAA may impose specified charges during periods of congestion that would otherwise conflict with the Rates and Charges Policy. Additional information is provided in the “Common Questions” accompanying the discussion of Grant Assurance 24 in the Guidebook (Section 1.2.1) A Sponsor may offer fee waivers or discounts on a temporary basis as part of an air service incentive program to encourage new or expanded air service. Requirements and limitations are discussed in the slides addressing air service incentive programs which follow.

GA 24, Air Service Incentive Programs Air service incentive programs are not explicitly addressed in GA 24, but the FAA  has relied on this Grant Assurance, as well as Grant Assurance 25, to develop  policy guidance on air service incentive programs. In general, air service incentive programs must be based on objective criteria  applied without unjust discrimination; must be limited in time to one or two  years; cannot lead to higher fees charged to other carriers, absent their  agreement; and cannot include direct cash subsidies to air carriers funded with  airport revenue. 66

GA 24, Air Service Incentive Programs What Must the Sponsor Do? (Subject to exceptions and permitted practices noted in following slides) Limit incentives to fee waivers or discounts or sharing of marketing and advertising expenses. Develop objective qualification standards for providing incentives and make the incentive available to all services meeting those standards. Limit incentives to a particular new entrant to one year. Limit incentives for a particular new service to two years. 67

GA 24, Air Service Incentive Programs 68 What May the Sponsor Do? Offer permitted incentives to a new entrant airline. Offer permitted incentives for new service, which can include the following:  Service to a new destination;  Introduction of non-stop service in a market that did not have it;  Increased frequencies in an existing market; and  Adding seats in a market (upgauging) if the incentive program also applies to adding flights and the upgauging does not cause a reduction in frequency. Offer incentives in the form of fee discounts or waivers or marketing support. A Sponsor with a compensatory or hybrid rate structure may use non-aeronautical net revenues to finance its incentives without obtaining airline approval.

GA 24, Air Service Incentive Programs 69 What Sponsor Actions Are Prohibited? Using airport revenue to pay cash subsidies or revenue guarantees. Increasing the fees charged to airlines not receiving an incentive to cover the costs (including lost revenue) of the incentive program, absent agreement of those airlines. A Sponsor with a 100% residual rate structure may not implement an incentive program unless all airlines serving the airport agree or the cost of the incentive program (including lost revenue) is recouped from non-airport revenue sources. What Are the Exceptions to the Requirements/Prohibitions? The Sponsor of a 100% residual airport may use airport revenue to cover the costs of an incentive program (including lost revenue) if all carriers serving the airport agree.

GA 25, Airport Revenues Sponsors must use airport revenue and taxes on aviation fuel (imposed after  December 1987) for capital and operating costs of the airport, the local airport  system or other facilities directly and substantially related to the actual air  transportation of passengers and property. Airport revenue is broadly defined and includes proceeds from the sale of airport  property, including the entire airport. GA 25 applies indefinitely, i.e. so long as the airport is operating. 70

GA 25, Aviation Fuel Taxes State aviation fuel taxes may also be used to support state  aviation programs or noise compatibility programs. If a Sponsor is not imposing the tax, its obligations are limited to  informing the taxing entity of GA 25 requirements and taking  reasonable actions in its power to tailor the tax to FAA  requirements. 71

GA 25, Airport Revenues What Must the Sponsor Do? (Subject to exceptions and permitted practices noted in following slides) Use airport revenue for the capital and operating costs of the airport, the local airport system or other transportation facilities directly and substantially related to air transportation. Use locally imposed taxes on the sale of aviation fuel (whether general sales taxes or target ad valorem taxes) for the same purposes. If state imposed fuel taxes are collected at the airport, advise the taxing entity of the federal requirements for the use of the tax proceeds and take reasonable actions within its power to tailor the tax to the FAA requirements. Require that the annual audit conducted under the Single Audit Act of 1984 include an opinion concerning the use of airport revenue and taxes, and indicating whether transfers of airport funds to the Sponsor were consistent with the requirements of the AIP statute, and any applicable regulations. 72

GA 25, Airport Revenues What May the Sponsor Do? The Sponsor of multiple airports may use revenue generated at one of its airports to pay the capital or operating costs of another airport in its system. Under Grant Assurance 25, the Sponsor is free to spend airport revenue on any eligible cost. There is no ranking or priority, so long as the expenditure meets the requirements of the Grant Assurance. A Sponsor may spend airport revenues on ground transportation projects that it owns and controls, if the projects meet the “directly and substantially” test. A Sponsor may reimburse itself for amounts advanced or donated to the airport fund, for no more than six years prior to the reimbursement. Interest can be included in the reimbursement only if there is documentation executed at the time of the advance showing that the advance was intended by the Sponsor and the airport to be an interest-bearing loan. 73

GA 25, Airport Revenues 74 What Sponsor Actions Are Prohibited? (Subject to the Exceptions Noted Below and Additional Actions Identified in the Common Questions Section) Transferring money from the airport fund to the Sponsor’s general fund or non-airport special purpose funds, or using airport revenue for any prohibited purpose identified in Section VI of the Airport Revenue Policy. Charging less than FMV for non-aeronautical use of airport property by other Sponsor departments or agencies. Using airport revenue to pay direct subsidies or revenue guarantees to air carriers as part of an air service incentive program. Requiring the airport to pay more than the value of services provided to the airport by other Sponsor departments or agencies. The FAA considers cost to be a reliable measure of value. Charging other Sponsor agencies or departments less than the value of services provided by the airport. The FAA considers cost to be a reliable measure of value.

GA 25, Airport Revenues 75 What Are the Exceptions to the Requirements/Prohibitions? If a Sponsor’s governing documents or financing documents in effect before September 3, 1982 provide for the use of airport revenue to support the Sponsor’s general debt obligations or other non-airport facilities, airport revenues may be used for that purpose. The FAA has identified twelve such “grandfathered” airports, which are listed in Appendix D, Technical Appendices. Taxes on aviation fuel enacted before December 31, 1987 are not subject to the restrictions. If the FAA provides funding to support the sale of an obligated privately-owned airport to a public agency, certain portions of the sales proceeds may not be subject to the restrictions, but the private owner must reimburse the FAA for the unamortized portion of any airport improvement grant plus the federal share of the FMV of any land acquired with the grant. A Sponsor of a general aviation airport may use the proceeds from mineral extraction, mineral leases and similar activities for other defined transportation projects, subject to limitations and requirements. This exception is discussed separately in the slides addressing mineral revenue which follow. State aviation fuel taxes may also be used to fund state aviation programs or to fund on or off-airport noise mitigation programs.

GA 25, Mineral Revenue Exception A general aviation airport, upon agreement  by the FAA, may use a portion of the revenue  from mineral extraction or sale or lease of  mineral rights (including water) for other  transportation infrastructure projects for up  to five years. 76

GA 25, Mineral Revenue Exception What Must the Sponsor Do? (Subject to exceptions and permitted practices below) Limit the diverted mineral revenue to federal, state or local transportation infrastructure projects carried out by the Sponsor or within the Sponsor’s jurisdiction. Limit the amount of diverted mineral revenue to the excess over what is required to fund the airport’s five-year capital improvement plan (CIP), including all operations and maintenance, after considering other sources of airport revenue. Continue to operate and maintain the airport. Use all other airport revenue besides the diverted mineral revenue for airport purposes in perpetuity (i.e. so long as the airport is an airport). Limit the diversion of mineral revenue to five years. Execute an agreement with the FAA incorporating these requirements and other terms and conditions and identifying the transportation infrastructure projects to be funded with mineral revenue. 77

GA 25, Mineral Revenue Exception What May the Sponsor Do? Select the proposed infrastructure projects to be funded with mineral revenue in the first instance, subject to the agreement of the FAA. What Sponsor Actions Are Prohibited? Accepting any AIP entitlement or discretionary grants during the period when the mineral revenue is diverted. Diverting mineral revenue for longer than a five-year period. Closing the airport. Diverting mineral revenue in excess of the amount discussed in the Required Sponsor Actions call-out box. Diverting mineral revenue without an executed agreement with the FAA. 78

GA 25, Mineral Revenue Exception What Are the Exceptions/Limitations to the Exemption? The mineral revenue exemption applies only to general aviation airports. Diversion of mineral revenue is limited to five years. 79

GA 26.a, d, Reports and Inspections All sponsors must submit annual operations  reports and annual budgets to FAA and make them  available to the public. Commercial service airports must submit, on FAA  forms, financial reports and reports of transactions  with other components of the Sponsor. 80

GA 26.a, d, Reports and Inspections What Must the Sponsor Do? (Subject to exceptions and permitted practices noted in following slides) Sponsors of commercial service airports (scheduled service and at least 2,500 annual passenger boardings) must submit the FAA Form 5100-127 and FAA Form 126 annually. Reports are normally due within 120 days of the end of the Sponsor’s fiscal year. General financial statements or alternative reporting formats are not accepted. Use the FAA’s electronic reporting system, the Compliance Activity Tracking System (CATS) to submit reports. What May the Sponsor Do? The Sponsor of multiple airports may, upon FAA approval, submit consolidated reports for its commercial service airports. Request an extension of up to 60 days from the 120-day deadline in order to file reports based on audited financial information. If the audited information is not available at the end of the extension period, the Sponsor must submit the report based on unaudited information. 81

GA 26.a, d, Reports and Inspections What Sponsor Actions Are Prohibited? Failing to file the FAA Form 127 or FAA Form 126 each year by the filing deadline. Using a format other than the two FAA Forms to submit the required information. Submitting hard-copy reports. What Are the Exceptions to the Requirements/Prohibitions? General aviation airports (including reliever airports) are not subject to the reporting requirement. A Sponsor may request an extension of up to 60 days from the 120-day deadline to file reports based on audited financial data. If the audited information is not available at the end of the extension period, the Sponsor must submit the report based on unaudited information. 82

Operation and Safety GA 19, Operations  and Maintenance GA 20, Hazard  Removal and  Mitigation GA 21, Compatible  Land Use GA 29, Airport  Layout Plan GA 30, Civil Rights GA 37,  Disadvantaged  Business  Enterprises 83

GA 19, Operations and Maintenance Sponsors must operate the entire airport (not just AIP funded facilities) at all  times, subject to climactic conditions and maintain the airport in a safe condition. Sponsors must notify pilots through the FAA NOTAM system of any closures or  conditions that affect the use of the airport. Sponsors may not close the airport for nonaeronautical purposes without the  approval of the FAA. Sponsors must maintain AIP‐funded noise compatibility project items that they  own.  84

GA 19, Operations and Maintenance 85 What Must the Sponsor Do? (Subject to exceptions and permitted practices noted in following slides) Operate the airport at all times in a safe and serviceable manner meeting FAA, state and local standards. When snow or ice conditions render the airport unsafe: (1) issue a NOTAM regarding the conditions; (2) close all or parts of the airport until the unsafe conditions are remediated; and (3) correct the unsafe conditions within a reasonable amount of time. Notify airmen of any conditions that affect the use of the airport. The FAA maintains a system of NOTAMs for this purpose. Operate any airfield lighting on a 24-hour basis or when needed. Get FAA approval before temporarily closing the airport for non-aeronautical purposes. The FAA generally does not support full closure of the airport for non-aeronautical purposes, but may support partial closure for short periods if the activity promotes aviation awareness. Mark and light hazards resulting from airport conditions. Operate and maintain Sponsor-owned noise compatibility program items funded by AIP grants.

GA 19, Operations and Maintenance 86 What May the Sponsor Do? Temporarily close the airport when severe flooding, snow or other weather conditions would prevent safe operations. Temporarily close the airport for non-aeronautical events, with the approval of the FAA. The FAA generally does not support full closure of the airport for non-aeronautical purposes, but may support partial closure for short periods if the activity promotes aviation awareness. The FAA will consider more favorably requests for full closure for short periods and partial closure of the airport to support aeronautical events such as air shows. At airports with low levels of activity or other circumstances limiting night operations, the Sponsor may satisfy the lighting requirement through remote activation by radio equipment in an aircraft.

GA 19, Operations and Maintenance 87 What Sponsor Actions Are Prohibited? Closing the airport without FAA approval, absent a severe weather event that would prevent safe operations. Continuing maintenance failures that result in safety deficiencies. Failures to timely address operations that may impair the safety of other aeronautical users. Permitting non-aeronautical uses of hangars when there is unmet aeronautical demand for hangar space (waiting lists). What Are the Exceptions to the Requirements/Prohibitions? Other than the items listed under “What May the Sponsor Do,” there are no exceptions.

GA 20, Hazard Removal and Mitigation Sponsors must protect terminal airspace by removing, lowering, relocating,  marking, lighting or otherwise mitigating  existing airport hazards and preventing  future airport hazards. 88

GA 20, Hazard Removal and Mitigation What Must the Sponsor Do? (Subject to exceptions and permitted practices noted in following slides) Prevent construction of any hazards to navigation on property that it owns or controls. Remove, lower, relocate, mark, or light or otherwise mitigate existing airport hazards on property that it owns or controls. Exercise any zoning or permitting authority it possesses to prevent construction of any hazards to navigation. Comply with 14 CFR Part 77 for any construction on the airport or on other property that it owns. Advise neighboring jurisdictions with zoning or permitting authority of the requirements of Part 77, when they are considering approval of construction that could create a hazard. Mark and light hazards resulting from airport conditions. 89

GA 20, Hazard Removal and Mitigation What May the Sponsor Do? With the concurrence of the FAA, mark, light, relocate or lower existing airport hazards, when removal is not feasible. 90

GA 20, Hazard Removal and Mitigation What Sponsor Actions Are Prohibited? Constructing or permitting construction of a hazard on the airport or other property it owns or controls. Failing to exercise zoning or permitting authority to prevent construction of a hazard. What Are the Exceptions to the Requirements/Prohibitions? A Sponsor’s obligations with respect to property that it does not own or control, and over which it has no zoning or permitting authority is limited to informing the interested parties, including the jurisdictions with zoning and permitting authority, of the requirements of Part 77. 91

GA 21, Compatible Land Use The Sponsor must, to the extent reasonable,  restrict land uses near the airport to those that are  compatible with the airport.  Also, if the Sponsor  takes a grant for noise compatibility, it must change  the land use of any land in its noise compatibility  program and in its jurisdiction to increase noise  compatibility. 92

GA 21, Compatible Land Use What Must the Sponor Do? (Subject to exceptions and permitted practices noted in following slides) If the Sponsor owns the land: (1) Prohibit through leases, regulations, minimum standards, etc. incompatible uses; (2) Include restrictive covenants to prevent incompatible uses whenever it sells land. If the Sponsor has jurisdiction over the land: (1) Adopt and enforce zoning regulations to prevent incompatible uses; (2) Adopt and enforce building codes to prevent incompatible uses. If another entity has jurisdiction over the land: (1) Encourage the other jurisdiction to adopt zoning regulations and building codes that will prevent incompatible uses; (2) Inform the other jurisdiction when incompatible uses are proposed and encouraging it not to grant the permits, waivers or amendments to regulations or codes that would permit the incompatible use. Cooperate with the FAA in conducting an RPZ analysis under the FAA’s Interim Guidance on Land Uses Within a Runway Protection Zone. 93

GA 21, Compatible Land Use What May the Sponsor Do? For land that it owns, select lease terms, regulations, or minimum standards, etc. as the means to prevent incompatible uses, so long as the method chosen is effective. For land over which it has jurisdiction, select the zoning regulation or building code provisions to assure compatible land uses, so long as they are effective. 94

GA 21, Compatible Land Use What Sponsor Actions Are Prohibited? Permitting incompatible land uses on property that it owns or controls. Failing to exercise zoning or permitting authority to prevent incompatible land uses on property over which it has jurisdiction. In a noise compatibility project, causing or permitting any change in land use, within its jurisdiction that will reduce its noise compatibility. What Are the Exceptions to the Requirements/Prohibitions? A Sponsor’s obligations with respect to property that it does not own or control, and over which it has no zoning or permitting authority is limited to encouraging the jurisdiction with zoning or permitting authority to adopt measures to assure compatible uses; to inform the jurisdiction when incompatible uses are proposed; and to encourage the jurisdiction not to grant the necessary authority or permits. 95

GA 11, Pavement Preventive Maintenance A Sponsor must have in place and follow a pavement  management program for all AIP funded airport pavement. What Must the Sponsor Do? (Subject to exceptions and permitted practices noted in following slides) Develop and implement a pavement maintenance management program meeting the FAA’s Standards. Conduct periodic and annual pavement inspections. What May the Sponsor Do? To prevent overstressing of pavement, restrict aircraft access based on weights that exceed the airport pavement design standards. Coordination with FAA is recommended before adopting a restriction. 96

GA 11, Pavement Preventive Maintenance What Sponsor Actions Are Prohibited? Failing to develop or implement a pavement maintenance management program meeting FAA standards. What Are the Exceptions to the Requirements/Prohibitions? The requirement for a pavement maintenance management program is limited to pavements funded with AIP Grants. However, the FAA recommends using it for all airport pavement. 97

GA 29, Airport Layout Plan The Sponsor must maintain an up‐to‐date airport layout plan (ALP) approved by  the FAA, showing current and future development and cannot make changes to  the airport that would adversely affect the airport’s safety, efficiency or utility that  are not shown on the approved ALP. If the Sponsor makes a change to the airport that adversely affects the safety,  efficiency or utility of any federal facilities that is not shown on the approved ALP,  the FAA may require the Sponsor to take corrective action. The Sponsor must also maintain an up‐to‐date Airport Property Map (Exhibit A),  which defines all airport property that is subject to Grant Assurance obligations.  98

GA 29, Airport Layout Plan 99 What Must the Sponsor Do? (Subject to exceptions and permitted practices noted in slides below) Obtain FAA approval of its current ALP. Obtain FAA approval of any amendments to the ALP. Develop the airport in a manner that is generally consistent with the approved ALP. Defer any construction until an ALP or amended ALP showing that construction has been approved by the FAA. The requirement applies to non-aeronautical as well as aeronautical construction. Maintain an up-to-date airport property map or Exhibit A. If construction that was not shown on an approved ALP adversely affects any federally owned, leased or funded facility (including AIP-funded projects) eliminate the adverse effect or pay the cost of correcting the situation.

GA 29, Airport Layout Plan What May the Sponsor Do? For ALP changes made between major master planning efforts, a Sponsor may submit proposed ALP amendments as pen and ink changes. 100

GA 29, Airport Layout Plan What Sponsor Actions Are Prohibited? Implementing or permitting construction that is not shown on an approved ALP that adversely affects the airport’s safety or utility. The prohibition applies to non-aeronautical as well as aeronautical construction. Failing to update the Exhibit A when parcels are added or deleted. What Are the Exceptions to the Requirements/Prohibitions? Even when unapproved construction adversely affects federally owned leased or financed facilities, the FAA may choose not to require the Sponsor to eliminate the adverse effect or bear the cost of corrective action. A Sponsor may make or permit minor changes to the airport before obtaining FAA approval for an amendment to the ALP, so long as the changes do not adversely affect the safety or utility of the airport and the Sponsor updates the ALP to show the changes. 101

GA 30, Civil Rights Sponsors may not discriminate based on race, creed,  color, national origin, sex, age, or handicap in providing  access to the airport or participating in programs.   GA parallels Title VI of the Civil Rights Act and 49 CFR  Part 21. 102

GA 30, Civil Rights What Must the Sponsor Do? (Subject to exceptions and permitted practices noted in following slides) Conduct all programs and operate all facilities in compliance with Grant Assurance 30 and 49 CFR Part 21. Include specified notice language regarding non-discrimination in any bid solicitation, RFPs under the Grant and in all proposals for agreements, regardless of funding sources. Concession agreements are specifically included in this requirement. Include non-discrimination language in all contracts that are subject to Title VI and 49 CFR Part 21. Any contract requiring this language must also include a list of applicable legal and administrative authorities implementing the prohibition on discrimination in this Grant Assurance and Title VI. Guarantee that the Sponsor itself, other recipients, sub-recipients, contractors, sub- contractors, consultants, transferees, successors in interest and other participants comply with all applicable non-discrimination requirements. 103

GA 30, Civil Rights What May the Sponsor Do? There is limited discretion under this Grant Assurance. Required language to implement the requirements is specified in detail and must be followed verbatim. 104

GA 30, Civil Rights What Sponsor Actions Are Prohibited? Discriminating on the grounds of race, creed, color, national origin, sex, age, or handicap in providing access to the airport or participation in airport programs, including participation in implementing the projects funded with AIP grants. Failing to include required nondiscrimination language in solicitations, proposals, contracts or other agreements. What Are the Exceptions to the Requirements/Prohibitions? There are no exceptions. 105

GA 37, Disadvantaged Business Enterprises As applied to general operations, management and finances of airports, GA 37  prohibits discrimination in the award or performance of any concession activity  covered by 49 CFR Part 23 and in the administration of its airport concession  disadvantaged business enterprise (ACDBE) program. The Sponsor’s ACDBE program is incorporated by reference into each AIP grant  agreement. The FAA can refer a failure to properly implement the Sponsor’s ACDBE program  for criminal enforcement, or civil enforcement, including debarment. 106

GA 37, Disadvantaged Business Enterprises What Must the Sponsor Do? (Subject to exceptions and permitted practices below) Avoid discrimination on the basis of race, color, national origin or sex in the award or performance of any concession activity contract covered by 49 CFR Part 23. Prohibit discrimination on the basis of race, color, national origin or sex by any master concessionaire, concession program manager, master lessee, etc. in any concession program covered by Part 23. As required by Part 23, establish ACDBE participation goals for covered concession programs and make good faith efforts to accomplish those goals through race and gender- neutral measures in the first instance, but through race or gender-conscious measures, if necessary. Follow ACDBE certification procedures and standards included in Part 23 and 49 CFR Part 26. Maintain all records and documentation required by Part 23. 107

GA 37, Disadvantaged Business Enterprises What May the Sponsor Do? Part 23 identifies a variety of methods for Sponsors to attempt to meet their ACDBE participation goals. A Sponsor may select the particular methods, so long they can be reasonably expected to be successful in the Sponsor’s particular circumstances. 108

GA 37, Disadvantaged Business Enterprises What Sponsor Actions Are Prohibited? Discriminating on the grounds of race, creed, color, national origin or sex, in implementing concession programs covered by Part 23. Permitting discrimination on the basis of race, color, national origin or sex by any master concessionaire, concession program manager, master lessee, etc. in any concession program covered by Part 23. What Are the Exceptions to the Requirements/Prohibitions? The requirements for ACDBE programs specified in Part 23 apply only to primary airports (airports with scheduled service and at least 10,000 annual passenger boardings). However, the non-discrimination requirements of the Grant Assurance apply to all airports. 109

Ownership and Control GA 4, Good Title GA 5.a,b, e, f,  Preserving Rights  and Powers (General  Requirements) GA 5.c, d, Preserving  Rights and Powers  (Noise Compatibility) GA 5.g, Preserving  Rights and Powers  (TTF Access) GA 31.a, Disposal of  Land (Noise  Compatibility) GA 31.b, Disposal of  Land (Airport  Development) 110

GA 4, Good Title The Sponsor, the federal government, or another public  agency must hold good title to the airport where the  AIP funded project is located. Good title includes fee simple interest, title by quick‐ claim deed, or a lease with a term at least as long as  the useful life of the project funded with the AIP grant. 111

GA 4, Good Title What Must the Sponsor Do? (Subject to exceptions and permitted practices noted in following slides) Own the airport or lease it from the federal government or another public agency. If leased, the remaining term of the airport lease must be at least as long as the useful life of the project being funded with the grant. A first-time Sponsor may be required to provide a Title Search Report to the FAA as part of an initial eligibility determination. For noise mitigation projects intended to be carried out on Sponsor property, the Sponsor must own or acquire the property where AIP funds will be spent. 112

GA 4, Good Title What May the Sponsor Do? Satisfy the good title requirement with either ownership or through an appropriate lease. What Sponsor Actions Are Prohibited? Failing to retain good title throughout the useful life of the project being funded. What Are the Exceptions to the Requirements/Prohibitions? An easement theoretically could be used to satisfy the requirement, but the research identified no airports that in fact relied on an easement to satisfy Grant Assurance 4. 113

GA 5.a, b, e, f, Preserving Rights and Powers  (General Requirements) The Sponsor cannot take actions that would deprive it of the rights or powers to  comply with the Grant Assurance requirements and must promptly eliminate any  rights that would interfere with its compliance. The Sponsor cannot dispose of any obligated property on Exhibit A without FAA  approval. A private Sponsor must ensure that its airport will operate for 10 years or the  useful life of the project, whichever is greater. Third party airport management agreements must include requirements to  comply with the Grant Assurances and provisions assuring that the Sponsor can  enforce this requirement. 114

GA 5.a, b, e, f, Preserving Rights and Powers (General  Requirements) What Must the Sponsor Do? (Subject to exceptions and permitted practices noted in following slides) Avoid any actions that would deprive it of its rights or powers to fully comply with the terms of the Grant Agreement, without obtaining FAA approval. Promptly extinguish any rights or claim of right that would interfere with its compliance. Obtain FAA approval, by submitting a written land release request, using the guidance in the latest iteration of FAA Order 5190.6, before selling, transferring, encumbering or otherwise disposing of airport property. This applies to all airport property, not just property acquired with Federal grants. A lease of more than 50 years is considered a disposal. If selling or otherwise transferring the airport (with FAA approval), include provisions in the transferring document requiring the new Sponsor to comply with existing Grant Assurances. Include in any third-party management agreement requirements for the manager to comply with the AIP statute and the Grant Assurances and include provisions enabling the Sponsor to enforce those requirements. A private airport Sponsor (non-governmental) must ensure that the airport will continue to operate in compliance with the Grant Assurances for at least 10 years or the useful life of the project, whichever is greater. 115

GA 5.a, b, e, f, Preserving Rights and Powers  (General Requirements) What May the Sponsor Do? Execute standard aeronautical and non-aeronautical commercial leases without prior FAA approval, so long as they do not exceed 50 years and are consistent with the Sponsor’s other Grant Assurance obligations. Execute a third-party management agreement for the airport without obtaining FAA approval. The agreement must meet the standards of Grant Assurance 5. Sell, transfer, encumber or otherwise dispose of airport property after receiving FAA approval, subject to any terms or conditions included in that approval. 116

GA 5.a, b, e, f, Preserving Rights and Powers  (General Requirements) What Sponsor Actions Are Prohibited? Selling, transferring, encumbering or otherwise disposing of airport property without FAA approval. Executing third-party management agreements that grant prohibited exclusive rights (Grant Assurance 23) or result in unjust economic discrimination (Grant Assurance 22), or that do not enable the Sponsor to enforce requirements that the third-party manager comply with any of the Grant Assurances. Taking any other actions that would deprive the Sponsor of its ability to operate the airport and carry out its obligations under the Grant Assurances. What Are the Exceptions to the Requirements/Prohibitions? Standard aeronautical leases and commercial leases are not considered disposals subject to the requirement for FAA approval, so long as they do not exceed 50 years in length. 117

GA 5.c, d, Preserving Rights and Powers (Noise  Compatibility If a noise compatibility grant is issued directly to a non‐Sponsor local government,  or the non‐Sponsor local government owns the land where the project will be  carried out, the Sponsor must execute and enforce an agreement requiring that  local government to comply with the grant agreement. For noise compatibility projects carried out on private property, e.g. residential  soundproofing, the Sponsor must execute an agreement with the property owner  including terms specified by the FAA.  Sponsors should consult with the FAA to  obtain the required terms.  118

GA 5.c, d, Preserving Rights and Powers (Noise  Compatibility What Must the Sponsor Do? (Subject to exceptions and permitted practices noted in following slides) When a noise compatibility project will be carried out by another local government or is located on land owned by another local government, the Sponsor must execute an agreement and enforce an agreement with that government requiring compliance with the Grant Assurances. For a noise compatibility project on private property, e.g. a residential sound-proofing project, the Sponsor must execute an agreement with the property owner including terms specified by the FAA and enforce that agreement. What May the Sponsor Do? Choose the exact form of the agreement and obligating language, so long as it satisfies the requirements of the Grant Assurance. Choose the method of enforcing the agreement, so long as the method is effective. 119

GA 5.c, d, Preserving Rights and Powers (Noise  Compatibility What Sponsor Actions Are Prohibited? Failing to execute an agreement when one is required under the Grant Assurance. Failing to enforce an agreement whenever there is substantial non-compliance. What Are the Exceptions to the Requirements/Prohibitions? These requirements do not apply to noise compatibility projects carried out by a Sponsor on land owned or controlled by the Sponsor. 120

GA 5.g, Preserving Rights and Powers (TTF  Access) GA 5.g specifically addresses residential through‐the‐fence (TTF) access, and  limits new residential TTF access to general aviation airports, based on  agreements meeting specific requirements. The requirements for commercial TTF access are similar to the required  provisions for residential TTF access agreements, based on the requirements of  other Grant Assurances. The Grant Assurances do not require a Sponsor to give TTF access rights, and  the FAA discourages Sponsors from giving TTF access. 121

GA 5.g, Preserving Rights and Powers (TTF Access) 122 What Must the Sponsor Do? (Subject to exceptions and permitted practices noted in following slides) Commercial service and private reliever airport Sponsors must limit TTF access to non- residential off-airport uses. Use written agreements to grant all types of TTF access. Residential TTF access agreements executed for general aviation airports must include the following, per Grant Assurance 5.g.  Requires the residential TTF user to pay fees comparable to those paid by similar on- airport users.  Requires the residential TTF user to pay for the cost of constructing and maintaining the infrastructure needed to provide TTF access.  Requires continued residential-noncommercial use.  Prohibits access to the airport from other properties through the residential TTF property.  Prohibits commercial aviation fueling activities on the residential TTF property. Additional general requirements for all TTF access agreements are listed under the “Common Questions” accompanying the discussion of TTF access in the Guidebook (Section1.4.4). Per Grant Assurance 29.a.4, Airport Layout Plan, all TTF access points, residential and non- residential, must be shown on the airport’s ALP. General aviation airports considering new residential TTF access must submit draft residential TTF access agreements to FAA for review.

GA 5.g, Preserving Rights and Powers (TTF  Access) What May the Sponsor Do? A Sponsor may refuse any or all requests for TTF access. The Sponsor of a general aviation airport may grant residential TTF access, if it complies with the terms of Grant Assurance 5.g. There is no cap on the fees a Sponsor may charge for TTF access. 123

GA 5.g, Preserving Rights and Powers (TTF  Access) 124 What Sponsor Actions Are Prohibited? The Sponsor of a commercial service or privately owned reliever airport may not grant new residential TTF access rights. What Are the Exceptions to the Requirements/Prohibitions? Residential TTF access arrangements that predate current FAA requirements are subject to review by the FAA on a case-by-case basis. The FAA may permit these arrangements to remain in place without terminating grant eligibility.

GA 31.a Disposal of Land (Noise Compatibility) The Sponsor must dispose of AIP funded land acquired for noise compatibility  at fair market value (FMV) when it is no longer needed for noise compatibility. The federal share of the FMV must be applied to other AIP eligible projects as  specified in the statute (or returned to the FAA as a last resort).  The local  share may be used for any purpose permitted under GA 25, Airport Revenues. The Sponsor may retain noise compatibility land if it is needed for an airport  purpose including RPZ protection or noise buffering and the revenue  generated by the interim use contributes to the airport’s self‐sustainability.  125

GA 31.a Disposal of Land (Noise Compatibility) 126 What Must the Sponsor Do? (Subject to Exceptions and Permitted Practices, Below) Dispose of noise land when it is no longer needed for noise compatibility or noise buffering purposes and apply either the federal share of the proceeds or FMV, whichever is greater, to the following purposes, in descending order of priority: 1. Reinvestment in an approved noise compatibility project at the airport; 2. Reinvestment in a project at the airport eligible for discretionary AIP funding under the special apportionment categories listed in 49 USC §47117(e); 3. Reinvestment in any other AIP-eligible airport development project at the airport; 4. Transfer to another Sponsor for use on a noise compatibility project at another airport; or 5. Repayment to the FAA for deposit in the Airport and Airway Trust Fund. Any project falling under the first four purposes must be approved by the FAA. Retain sufficient rights or interests in any land disposed or leased under this clause to prevent future incompatible uses based on noise. Maintain an up-to-date noise land inventory and disposal plan. Amend the Exhibit A and Airport Layout Plan following disposal.

GA 31.a Disposal of Land (Noise Compatibility) 127

GA 31.a Disposal of Land (Noise Compatibility) What Sponsor Actions Are Prohibited? Retaining land no longer needed for noise compatibility purposes. Accepting less than FMV for a disposal, unless the federal share of the FMV is applied as specified in the Grant Assurance. However, based on Grant Assurance 24, Fee and Rental Structure, it is unlikely that the FAA would approve a disposal at less than FMV, even if the Sponsor offered to use the full federal share of the FMV as required. What Are the Exceptions to the Requirements/Prohibitions? Land may be retained for airport purposes (including RPZs or noise buffers), so long as the revenue generated from the interim use contributes to the airport’s financial self-sufficiency. 128

GA 31.b Disposal of Land (Airport  Development) The Sponsor must dispose of AIP funded land acquired for airport  development at fair market value (FMV) when it is no longer needed for  airport purposes. The federal share of the FMV must be applied to other AIP eligible projects as  specified in the statute (or returned to the FAA as a last resort).  The local  share may be used for any purpose permitted under GA 25, Airport Revenues. The Grant Assurance defines airport purpose to include RPZ protection or  noise buffering so long as the revenue generated by the interim use  contributes to the airport’s self‐sustainability.  129

GA 31.b Disposal of Land (Airport Development) 130 What Must the Sponsor Do? (Subject to Exceptions and Permitted Practices, Below) Dispose of airport development when it is no longer needed for airport development purposes and apply either the federal share of the proceeds or of the FMV, whichever is greater, to the following purposes, in descending order of priority: 1. Reinvestment in an approved noise compatibility project at the airport; 2. Reinvestment in a project at the airport eligible for discretionary AIP funding under the special apportionment categories listed in 49 USC §47117(e); 3. Reinvestment in any other AIP-eligible airport development project at the airport; 4. Transfer to another Sponsor for use on a noise compatibility project at another airport; or 5. Repayment to the FAA for deposit in the Airport and Airway Trust Fund. Any project under the first four purposes must be approved by the FAA. Retain sufficient rights or interests in any land sold or leased under this clause to prevent future incompatible uses. Amend the Exhibit A and ALP after the disposal.

GA 31.b Disposal of Land (Airport  Development) 131 What May the Sponsor Do? Continue to lease, rather than sell airport development land if it is needed for airport purposes (including protection of RPZs or noise buffering), if the revenue generated by interim uses of the land contributes to the airport’s financial self-sufficiency. Land used for non-aeronautical purposes must be leased based on FMV. Subject to the priorities listed above, and to FAA approval, select the projects for which the Federal share is used. Use the local share of the proceeds from disposal for any purpose permitted under Grant Assurance 25, Airport Revenues. Use the revenue from land retained for airport purposes, including noise buffers for any purpose permitted under Grant Assurance 25, Airport Revenues.

GA 31.b Disposal of Land (Airport  Development) What Sponsor Actions Are Prohibited? Retaining land no longer needed for airport purposes. Accepting less than FMV for a disposal, unless the federal share of the FMV is applied as specified in the Grant Assurance. However, based on Grant Assurance 24, Fee and Rental Structure, it is unlikely that the FAA would approve a disposal at less than FMV, even if the Sponsor offered to use the full federal share of the FMV as required. What Are the Exceptions to the Requirements/Prohibitions? Land may be retained for airport purposes (including RPZs or noise buffers), so long as the revenue generated from the interim use contributes to the airport’s financial self-sufficiency. 132

Federal Aircraft and Facilities GA 27, Use by  Government  Aircraft GA 28, Land  for Federal  Facilities 133

GA 27, Use by Government Aircraft The Sponsor must provide access to the aircraft operations area (AOA) to  federal government aircraft at no charge, unless government aircraft use  is substantial. For substantial use, the Sponsor may charge a proportional share of the  AOA operation and maintenance costs. 134

GA 27, Use by Government Aircraft What Must the Sponsor Do? (Subject to exceptions and permitted practices noted in following slides) Permit federal government aircraft to operate at no charge, unless federal use is substantial, as defined above and below. If charging for substantial use by federal aircraft, limit charges to a prorated share of operations and maintenance costs of the airfield. 135

GA 27, Use by Government Aircraft What May the Sponsor Do? Charge a pro rata share of the operations and maintenance cost of the airfield for substantial use. Unless otherwise agreed to by the Sponsor and federal agency, or otherwise determined by the FAA, substantial use consists, on a monthly basis, of the following:  Five or more based aircraft on or adjacent to the airport;  300 or more landings; or  Total landed weight of government aircraft exceeding 300 million pounds. In the case of substantial use, negotiate the basis for calculating the fee with the federal department or agency operating the aircraft. Permit the federal agency to use the airport at no charge even if the criteria for substantial use outlined above are satisfied. 136

GA 27, Use by Government Aircraft What Sponsor Actions Are Prohibited? Charging a federal agency for aircraft use when operations are not substantial. Imposing charges that exceed the pro rata share of the operations and maintenance cost of the airfield and other facilities used by the government aircraft. What Are the Exceptions to the Requirements/Prohibitions? The substantial use exception described above. 137

GA 28, Land for Federal Facilities GA 28 requires the Sponsor to provide to the FAA and other federal  agencies at no cost areas of land, water or space in buildings for air  navigation, air traffic control or weather reporting. FAA appropriations acts annually limit this obligation to providing  rent‐free land for air navigation facilities and providing other space  through negotiations for below market rates. 138

GA 28, Land for Federal Facilities What Must the Sponsor Do? (Subject to exceptions and permitted practices noted in following slides) Provide without cost to the FAA and other federal agencies areas of land, water or rights in buildings for use in air navigation, air traffic control or weather reporting and communication activities related to air traffic control. This obligation may include utility easements. Facilities qualifying for rent-free treatment include the following:  Very high frequency omni-directional radio range facilities (VORs).  Air Traffic Control (ATC) Towers.  Terminal Radar Approach Controls (TRACONs). 139

GA 28, Land for Federal Facilities What May the Sponsor Do? Subject to the needs of the FAA, including technical requirements, identify potential areas or building spaces to locate FAA facilities. Charge for land for roads to FAA facilities or for parking facilities for FAA employees. Charge the FAA for any construction, site preparation or other costs incurred by the Sponsor to enable FAA to construct or install the facility or equipment. 140

GA 28, Land for Federal Facilities What Sponsor Actions Are Prohibited? Charging the FAA for land or space in buildings for facilities that qualify for no-cost rent under Grant Assurance 28. What Are the Exceptions to the Requirements/Prohibitions? The Sponsor may charge the FAA for land used for roads to FAA facilities or for FAA employee parking. The Sponsor is not required to construct or pay for construction of any FAA facilities. Based on annual FAA appropriations, a Sponsor is not required to furnish maintenance, utilities or space in buildings, except through negotiations for “below market” rates. 141

Project Specific Requirements 142