Permissible Uses of Airport Property and Revenue (2020)

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Permissible Uses of Airport Property and Revenue Copyright National Academy of Sciences. All rights reserved. 50 ACRP LRD 40 Wendell H. Ford Aviation Investment and Reform Act for the 21st Century, Pub. L. No. 106-181, 114 Stat. 61 (2000). Legislative History 142 Cong. Rec. S5268–69 (daily ed. May 17, 1996) (statement by Sen. McCain). 162 Cong. Rec. H5698 (daily ed. Sept. 20, 2016) (statement of Rep. Zeldin). 164 Cong. Rec. H3643, H3656 (daily ed. Apr. 26, 2018) (state- ments of Rep. Sanford). 91 Cong. Rec. 8430–49 (1945). Airport Revenue Diversion: Hearing Before the Subcomm. on Avi- ation of the S. Comm. on Commerce, Sci., and Transp., 104th Cong. (1996), https://books.google.com/books?id=nQED kwETmdkC&lpg=PP1&dq=%22airport%20revenue%20 diversion%22&pg=PP1#v=onepage&q=%22airport%20 revenue%20diversion%22&f=false. Civil Aeronautics Admin., U.S. Dep’t. of Commerce, Leg- islative History of the Federal Airport Act, at 516– 518 (1948), https://babel.hathitrust.org/cgi/pt?id=mdp.3901 5047400950;view=1up;seq=11. FAA Reauthorization: Perspectives on Improving Airport In- frastructure and Aviation Manufacturing: Hearing Before the Subcomm. on Aviation Operations, Safety, & Sec. of the Comm. on Commerce, Science, & Transp., 115th Cong. 10-12 (2017) (statement of Bob Montgomery, Vice President, Air- port Affairs, Southwest Airlines). H.R. Rep. No. 103-677, pt. 60, at 59 (1994) (Conf. Rep.). H.R. Rep. No. 115-650, at 9 (2018). S. Rep. No. 91-706, at 2 (1970). Regulations and Contractual Obligations 14 C.F.R. Part 77 (2019). 14 C.F.R. § 158.3 (2019). 14 C.F.R. § 158.15(a) (2019). 23 C.F.R. § 774.3 (2019). 49 C.F.R. § 155.7 (2019). FAA, Airport Sponsor Assurances (2014), https://www. faa.gov/airports/aip/grant_assurances/media/airport- sponsor-assurances-aip.pdf. FAA Formal Guidance Airport Improvement Program (AIP) Use of Mineral Revenue at Certain Airports, 77 Fed. Reg. 30,350 (May 22, 2012). Airport Investment Partnership Program, 84 Fed. Reg. 42,977 (Aug. 19, 2019). Airport Privatization Pilot Program: Application Procedures, 62 Fed. Reg. 48,693 (Sept. 16, 1997). FAA Order No. 5100.38D, Change 1, Airport Improve- ment Program Handbook app. P (2019). FAA Order No. 5190.2R, List of Public Airports Affected by Agreements with the Federal Government (1990). BIBLIOGRAPHY Federal Statutes and Legislation United States Code 49 U.S.C. § 40104 (2019). 49 U.S.C. § 40116 (2019). 49 U.S.C. § 40117 (2019). 49 U.S.C. § 46301 (2019). 49 U.S.C. § 47101 (2019). 49 U.S.C. § 47102 (2019). 49 U.S.C. § 47106 (2019). 49 U.S.C. § 47107 (2019). 49 U.S.C. § 47111 (2019). 49 U.S.C. § 47115 (2019). 49 U.S.C. § 47117 (2019). 49 U.S.C. § 47125 (2019). 49 U.S.C. § 47133 (2019). 49 U.S.C. § 47134 (2019). 49 U.S.C. § 47151 (2019). 49 U.S.C. § 47152 (2019). 49 U.S.C. § 47153 (2019). Federal Statutes Act of Oct. 7, 2016, Pub. L. 114-238, 130 Stat. 972 (2016) (codi- fied at 49 U.S.C. § 47107(t) (2019)). Airport and Airway Development Act of 1970, Pub. L. No. 91- 258, 84 Stat. 219 (1970). Airport and Airway Improvement Act of 1982, Pub. L. No. 97- 248, § 505, 96 Stat. 324, 676–77 (1982). Airport and Airway Safety and Capacity Expansion Act of 1987, Pub. L. No. 100-223, § 109, 101 Stat. 1486, 1499–1502 (1987) (codified at 49 U.S.C. § 47107(b) (1) (2019)). Airport Revenue Protection Act of 1996, Pub. L. No. 104-264, Title VIII, § 804, 110 Stat. 3213, 3271 (1996) (codified as amended at 49 U.S.C. § 47133 (2019)). Department of Transportation and Related Agencies Appro- priation Act of 1998, Pub. L. 105-66, § 340, 111 Stat. 1425, 1448–49 (1997) (codified at 49 U.S.C. § 47107 note (2019)). Federal Airport Act of 1946, Pub. L. No. 79-377, 60 Stat. 170 (1946). Federal Aviation Administration Authorization Act of 1994, Pub. L. No. 103-305, 108 Stat. 1569 (1994). Federal Aviation Reauthorization Act of 1996, Pub. L. No. 104-264, § 149, 110 Stat. 3213, 3224–27 (1996) (codified as amended at 49 U.S.C. § 47134 (2019)). FAA Modernization and Reform Act of 2012, Pub. L. No. 112- 95, § 156, 126 Stat. 11, 36 (2012) (codified as amended at 49 U.S.C. § 47134 (2019)). FAA Reauthorization Act of 2018, Pub. L. No. 115-254, §§ 160, 163, 132 Stat. 3186, 3221, 3224 (2018) (codified at 49 U.S.C. § 47134 (2019)). Surplus Property Act of 1944 Amendment, Pub. L. No. 80-289, 61 Stat. 678 (1947).

Permissible Uses of Airport Property and Revenue Copyright National Academy of Sciences. All rights reserved. ACRP LRD 40 51 FAA, Bulletin 1: Best Practices—Surface Access to Air- ports (2006). FAA, Compliance Guidance Letter 2018-3, Appraisal Standards for the Sale and Disposal of Federally Obligated Airport Property (2018). FAA, FAA Historical Chronology, 1926-1996, https:// www.faa.gov/about/history/chronolog_history/media/b- chron.pdf. FAA, Grandfathered Airports—May 1, 2018, https://cats. airports.faa.gov/GrandfatheredAirports.pdf. Program Guidance Letters (PGLs) and Program Information Memorandums (PIMs) for the Airport Improvement Program (AIP), FAA, https://www.faa.gov/airports/aip/guidance_ letters/#rpgls (last modified Sept. 4, 2019). Office of Airport Planning & Programming, FAA, Noise Land Management and Requirements for Disposal of Noise Land or Development Land Funded with AIP (2014), https://www.faa.gov/airports/environmental/policy_ guidance/media/Noise-Land-Management- Disposal-AIP- Funded-Noise-Development-Land.pdf. Office of Airports, FAA, Environmental Desk Reference for Airport Actions ch. 7 (2007). Phillip S. Shapiro et al., U.S. Dep’t of Transp., Report No. DOT-T-97-15, Intermodal Ground Access to Airports: A Planning Guide (1996) (report prepared by Bellomo-McGee, Inc. for the FHWA and FAA). Court Cases Air Transp. Assoc. of Am. v. FAA, 169 F.3d 1 (D.C. Cir. 1999). Chevron, U.S.A., Inc. v. Nat. Res. Def. Council, 467 U.S. 837 (1984). City of Arlington v. FCC, 569 U.S. 290 (2013). City of Los Angeles v. FAA, 239 F.3d 1033 (9th Cir. 2001). Clayton County v. FAA, 887 F.3d 1262 (11th Cir. 2018). Dep’t. of Transp. v. Paralyzed Veterans, 477 U.S. 597 (1986). Evansville-Vanderburgh Airport Auth. v. Delta Air Lines, 405 U.S. 707 (1972). FDA v. Brown & Williamson Tobacco Corp., 529 U.S. 120 (2000). Office of Hawaiian Affairs, v. State, 133 P.3d 767 (Haw. 2006). Pofolk Aviation Haw., Inc. v. Dep’t of Transp. for the State, 354 P.3d 436 (Haw. 2015). Susquehanna Area Reg’l Airport Auth. v. Middletown Area Sch. Dist., 918 A.2d 813 (Pa. Commw. Ct. 2007). Tulsa Indus. Auth. v. Tulsa Airports Improvement Trust, No. 13-CV-0179-CVE-TWL, 2013 U.S. Dist. LEXIS 159572 (N.D. Okla. Nov. 7, 2013). United States v. Mead Corp., 533 U.S. 218 (2001). FAA/DOT Administrative Orders and Decisions BMI Salvage Corp. v. Miami-Dade County, FAA Docket No. 16-05-16, Determination of the Director of Airport Safety and Standards (July 25, 2006), rev’d and remanded, 272 Fed. App’x 842 (11th Cir. 2008). FAA Order No. 5190.6B, FAA Airport Compliance Manual (2009). FAA Order No. 5050.4B, National Environmental Policy Act (NEPA) Implementing Instructions for Airport Actions (2006). FAA Order No. 5500.1, Passenger Facility Charge Hand- book (Aug. 9, 2001). Notice of Policy Regarding the Eligibility of Airport Ground Access Transportation Projects for Funding Under the Passenger Facility Charge Program, 69 Fed. Reg. 6366 (Feb. 10, 2004). Passenger Facility Charge (PFC) Program: Eligibility of Ground Access Projects Meeting Certain Criteria, 81 Fed. Reg. 26,611 (May 3, 2016), amended by 81 Fed. Reg. 28,934 (May 10, 2016) (technical amendments only). Petition of the Clark County Department of Aviation to Use a Weight-Based Air Service Incentive Program, 77 Fed. Reg. 21,146 (Apr. 9, 2012). Policy and Procedures Concerning the Use of Airport Revenue, 61 Fed. Reg. 7134 (Feb. 26, 1996). Policy and Procedures Concerning the Use of Airport Revenue, Supplemental Notice of Proposed Policy, 61 Fed. Reg. 66,735 (Dec. 18, 1996). Policy and Procedures Concerning the Use of Airport Revenue, 64 Fed. Reg. 7696 (Feb. 16, 1999). Policy and Procedures Concerning the Use of Airport Revenue; Proceeds from Taxes on Aviation Fuel, 78 Fed. Reg. 69,790 (Nov. 21, 2013). Policy and Procedures Concerning the Use of Airport Revenue; Proceeds from Taxes on Aviation Fuel, 79 Fed. Reg. 66,282 (Nov. 7, 2014). Policy on the Non-Aeronautical Use of Airport Hangars, 81 Fed. Reg. 38,906 (June 15, 2016). FAA Informal Guidance and Materials Airport Compliance, FAA, https://www.faa.gov/airports/ airport_compliance/ (last modified Sept. 13, 2019). Airport Improvement Program (AIP) Grant Histories, FAA, https://www.faa.gov/airports/aip/grant_histories/ (last up- dated Apr. 9, 2019). Aviation Fuel Tax Action Plans and Status, FAA, https://www. faa.gov/airports/airport_compliance/aviation_fuel_tax/ (last updated Mar. 20, 2019). FAA, Advisory Circular No. 150/5190-6, Exclusive Rights at Federally Obligated Airports (2007). FAA, Advisory Circular No. 150/5100-19D, Guide for Airport Financial Reports Filed by Airport Sponsors (2011). FAA, TC10-0034, Air Carrier Incentive Program Guide- book: A Reference for Airport Sponsors (2010). FAA Airport Compliance Division ACO-100, Compli- ance Review of the Austin-Bergstrom International Airport (2014), https://www.faa.gov/airports/airport_ compliance/media/austin-final-report.pdf.

Permissible Uses of Airport Property and Revenue Copyright National Academy of Sciences. All rights reserved. 52 ACRP LRD 40 Intergovernmental payments Air Transp. Ass’n of Am., Inc. et al. v. Port of Portland, Or., FAA Docket No. 16-16-04, Final Agency Decision (May 18, 2018), https:// www.regulations.gov/document?D=FAA-2016-4972-0024. Air Transp. Ass’n of Am., Inc. v. City of Los Angeles, FAA Docket No. 13-95-05, Final Agency Decision and Order (June 1, 2009). Chandler Air Serv., Inc. v. City of Chandler, AZ, FAA Docket No. 16-13-05, Determination of the Director of Airport Compliance and Management Analysis (Feb. 9, 2016). In the Matter of Revenue Diversion by the City of L.A. at Los Angeles Int’l, Ontario, Van Nuys & Palmdale Airports, FAA Docket No. 16-01-96, Record of Determination of the Office of Airport Safety and Standards (Mar. 17, 1997). Meyer v. City of Cincinnati, FAA Docket No. 16-12-14, Deter- mination of the Director of Airport Compliance and Man- agement Analysis (Sept. 12, 2014). Nat’l Bus. Aviation Ass’n, Inc. v. Town of East Hampton, FAA Docket No. 16-15-08, Determination of the Director of Air- port Compliance and Management Analysis (Mar. 26, 2018). FAA and DOT Correspondence E-mail from Richard Pur, Chi. Airports Dist. Office, FAA, to Tom Cleveland, Manager, DeKalb Taylor Mun. Airport (June 8, 2011, 2:47 PM), https://dekalbcountyonline.com/2011/06/ city-of-dekalb-responds-to-faa-cornfest-letter/. Letter from Barry L. Molar, Manager, Airports Law Branch, Office of the Chief Counsel, FAA, to Jeffrey Schultes, Man- ager, Portland Int’l Jetport (Oct. 21, 1996), https://crp. trb.org/acrplrd21/wp-content/themes/acrp-child/lrd21/ documents/1996_Schultes.pdf. Letter from Calvin L. Scovel III, Inspector Gen., Office of z Inspector Gen., U.S. Dep’t of Transp., to Tom Latham, Rep- resentative, U.S. House of Representatives (Apr. 9, 2014), https://www.oig.dot.gov/sites/default/files/LAWA%20Letter. pdf. Letter from Carol Key, Manager, Seattle Airports Dist. Office, FAA, to David Waggoner, Airport Dir., Paine Field, Snohomish Cty. (Nov. 15, 2005) (on file with author). Letter from Charles Erhard, Manager, Airport Compliance Div., FAA, to Timothy Edwards, Acting Exec. Dir., Susquehanna Area Reg’l Airport Auth., Harrisburg Int’l Airport (Mar. 20, 2007), https://crp.trb.org/acrplrd21/wp-content/themes/ acrp-child/lrd21/documents/2007_Edwards.pdf. Letter from Daphne A. Fuller, Assistant Chief Counsel for Air- ports & Envtl. Law, FAA, to Sean C. Flynn, Airport Manager, Martha’s Vineyard Airport (June 19, 2008), https://crp. trb.org/acrplrd21/wp-content/themes/acrp-child/lrd21/ documents/2008_Flynn.pdf. Letter from Daphne Fuller, Assistant Chief Counsel for Airports & Envtl. Law, FAA, to Ronald S. Depue, Counsel, Hall Cty. Airport Auth. (Dec. 23, 2009), https://crp.trb.org/acrplrd21/ wp-content/themes/acrp-child/lrd21/documents/2009_ Depue.pdf. Boca Airport, Inc. v. Boca Raton Airport Auth., FAA Docket No. 16-00-10, Final Agency Decision and Order (Mar. 20, 2003). Bombardier Aerospace Corp. v. City of Santa Monica, FAA Docket No. 16-03-11, Determination of the Director of Air- port Safety and Standards (Jan. 4, 2005). Boston Air Charter v. Norwood Airport Comm’n, FAA Docket No. 16-07-03, Final Agency Decision and Order (Aug. 14, 2008). Clarke v. Alamogordo, FAA Docket No. 16-05-19, Determina- tion of the Director of Airport Safety and Standards (Sept. 20, 2006). Nonaeronautical development N. Air, Inc. & Kem Aviation, LLC v. Kent Cty., MI Gerald R. Ford Int’l Airport Board, FAA Docket No. 16-11-10, Deter- mination of the Director of Airport Compliance and Man- agement Analysis (March 28, 2013). Ground Access and Intermodal Projects Record of Decision, PFC Application No. 96-03-U-00-EWR (FAA Nov. 6, 1997). Record of Decision, PFC Application No. 97-04-C-00-JFK (FAA Feb. 9, 1998). Record of Decision, PFC Application No. 99-07-C-00-PDX (FAA May 27, 1999). Promoting competition at airports Delta Air Lines’ Informal Complaint Concerning Wichita’s Air Carrier Subsidies to AirTran Airways, Inc. (Aug. 2, 2006). Delta Air Lines, Inc. v. Lehigh-Northampton Airport Auth., DOT Docket No. OST-95-80, Order No. 95-5-8, Order of Dismissal (May 4, 1995). Privatization/P3 Boca Airport, Inc. v. Boca Raton Airport Auth., FAA Docket No. 16-00-10, Determination of the Director of Airport Safety and Standards (Apr. 26, 2001). Delbert Johnson d/b/a Two Dogs Aviation v. Goldsboro-Wayne Airport Auth., FAA Docket No. 16-08-11, Determination of the Director of Airport Compliance and Field Operations (Oct. 9, 2009). Participation of Luis Muñoz Marín International Airport, San Juan, Puerto Rico, in the Airport Privatization Pilot Pro- gram, FAA Docket No. 2009-1144, Record of Decision (Feb. 25, 2013). Wilson Air Center, LLC v. Memphis and Shelby Cty. Airport Auth., FAA Docket No. 16-99-01, Determination of the Director of Airport Safety and Standards (Aug. 2, 2000).

Permissible Uses of Airport Property and Revenue Copyright National Academy of Sciences. All rights reserved. ACRP LRD 40 53 St. Louis Lambert International Airport, FAA Docket No. 2017- 0325 (2017). Stewart International Airport, FAA Docket No. 2003-14961 (2007). Westchester County Airport, FAA Docket No. 2016-947 (2016). DOT OIG Audits and Reports Office of Inspector Gen., U.S. Dep’t of Transp., Report No. AV-1999-056, Use of Airport Revenue for the Bay Area Rapid Transit District Extension to the San Francisco International Airport (1999). Office of Inspector Gen., U.S. Dep’t of Transp., Report No. AV-1999-052, Use of airport revenue, Denver inter national airport (1999). Office of Inspector Gen., U.S. Dep’t of Transp., Report No. AV-1999-029, Use of Airport Revenue, Syracuse Hancock International Airport (1998). 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Permissible Uses of Airport Property and Revenue Copyright National Academy of Sciences. All rights reserved. 54 ACRP LRD 40 U.S. Gov’t Accountability Office, GAO-15-42, Airport Privatization: Limited Interest Despite FAA’s Pilot Program (2014). ACRP and TCRP Research Aviation Mgmt. Consulting Grp. et al., Transp. Research Bd., Airport Coop. Research Program, ACRP Report 156: Guidebook for Managing Compliance with Federal Regulations: In Integrated Approach (2016). Cindy Nichol, Transp. Research Bd., Airport Coop. Research Program, ACRP Synthesis 1: Innovative Finance and Alternative Sources of Revenue for Airports (2007). Leigh Fisher Assocs. et al., Transp. Research Bd., Transit Coop. Research Program, TCRP Report 62: Improv- ing Public Transportation Access to Large Airports (2000). Leigh Fisher Assocs. et al., Transp. Research Bd., Transit Coop. Research Program, TCRP Report 83: Strate- gies for improving public transportation Access to Large Airports (2002). Lois S. Kramer & Mike Moore, Transp. Research Bd., Air- port Coop. Research Program, ACRP Synthesis 57: Airport Responses to Special Events ch. 9 (2014). Lois S. Kramer, Transp. Research Bd., Airport Coop. Research Program, ACRP Synthesis 19: Airport Revenue Diversification (2010). Paul B. Demkovich et al., Transp. Research Bd., Air- port Coop. Research Program, Airport Cooperative Research Program Report 111: A Guidebook for Air- port-Airline Consortia (2014). Paul Stephen Dempsey, Transp. Research Bd., Airport Coop. Research Program, Legal Research Digest 2: Theory and Law of Airport Revenue Diversion (2008). Rick Crider, et al., Transp. Research Bd., Airport Coop. Research Program, ACRP Report 47: Guidebook for Developing and Leasing Airport Property (2011). Sheri Ernico et al., Transp. Research Bd., Airport Coop. Research Program, Airport Cooperative Research Program Report 66: Considering and Evaluating Air- port Privatization (2012). Stephanie Ward et al., Transp. Research Bd., Airport Coop. Research Program, ACRP Research Report 176: Generating Revenue from Commercial Development On or Adjacent to Airports (2017). Stephen P. Barrett et al., Transp. Research Bd., Airport Coop. Research Program, ACRP Report 141: Renew- able Energy as an Airport Revenue Source (2015). Steven C. Martin, Transp. Research Bd., Airport Coop. Research Program, ACRP Report 18: Passenger Air Service Development Techniques (2009). Susan J.H. Zellers et al., Transp. Research Bd., Airport Coop. Research Program, ACRP Research Report 16: Guidebook for Managing Small Airports (2d ed. 2019). Office of Inspector Gen., U.S. Dep’t of Transp., Report No. R9-FA-7-005, Management Advisory Memorandum on City of Los Angeles’ Department of Airports Rev- enue Retention (1997). Office of Inspector Gen., U.S. Dep’t of Transp., Report No. SC-2004-038, Report on Revenue Use and Diver- sions at San Francisco International Airport (2004) (various charges assessed by the City of San Francisco on SFO were impermissible revenue diversion). Governmental Reports and Other Materials Megan Gaillard, Internal Audit Dep’t, Collier Cty. Air- port Auth., Report 2014-4: Drag Strip and Go Cart Track (2014), https://www.collierclerk.com/ images/ resource-library/pdf/internal-audit-pdf/2014-4%20 CCAA%20Drag%20Strip%20and%20Go%20Cart%20 Track.pdf. Panel on Public-Private P’Ships, H. Comm. on Transp. and Infrastructure, 113th Cong., Public-Private Partnerships: Balancing the Needs of the Public and Private Sectors to Finance the Nation’s Infrastruc- ture; Findings and Recommendations of the Special Panel on Public-Private Partnerships (2014). Rachel Y. Tang, Cong. Research Serv., R43327, Financing Airport Improvements (2019). Rachel Y. Tang, Cong. Research Serv., R43545, Airport Privatization: Issues and Options for Congress (2017). Robert S. Kirk, Cong. Research Serv., R40608, Airport Improvement Program (AIP): Reauthorization Issues for Congress (2009). U.S. Gov’t Accountability Office, GAO/RCED-97-3, Air- port Privatization: Issues Related to the Sale or Lease of U.S. Commercial Airports (1996). U.S. Gov’t Accountability Office, GAO/RCED-98-71, Airport Financing: Funding Sources for Airport Development (1998). U.S. Gov’t Accountability Office, GAO/RCED-99-109, General Aviation Airports—Unauthorized Land Use Highlights Need for Improved Oversight and Enforcement (1999). U.S. Gov’t Accountability Office, GAO/T-RCED-96-82, Airport Privatization—Issues Related to the Sale or Lease of U.S. Commercial Airports (1996). U.S. Gov’t Accountability Office, GAO/T-RCED-99-214, General Aviation Airports—Oversight and Funding (1999). U.S. Gov’t Accountability Office, GAO-05-727, Inter- modal Transportation: Potential strategies would redefine Federal Role in Developing Airport Inter- modal Capabilities (2005). U.S. Gov’t Accountability Office, GAO-15-306, Air- port Finance: Information on Funding Sources and Planned Capital Development (2015).