Understanding FAA Grant Assurance Obligations Volume 4: Summary of AIP Grant Assurance Requirements (2018) / Chapter Skim
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Pages 16-143
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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
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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
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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)
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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
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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.
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Grant Assurance 22.a Economic Nondiscrimination (General) 20 What May the Sponsor Do?
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Grant Assurance 22.a Economic Nondiscrimination (General) 21 What Sponsor Actions Are Prohibited?
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Grant Assurance 22.a Economic Nondiscrimination (General) 22 What are the Exceptions to the Requirements/Prohibitions?
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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)
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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.
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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.
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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?
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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.
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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.
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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?
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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.
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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.
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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?
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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.
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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.
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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?
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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.
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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.
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GA 22.g, Sponsor Commercial Services (Proprietary Rights) A Sponsor providing commercial aeronautical services directly to the public (exercising proprietary rights)
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GA 22.g, Sponsor Commercial Services (Proprietary Rights) 39 What May the Sponsor Do?
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GA 22.g, Sponsor Commercial Services (Proprietary Rights) 40 What Sponsor Actions Are Prohibited?
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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?
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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.
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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.
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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.
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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?
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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.
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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)
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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.
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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 wouldbe competitors.
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GA 23, Exclusive Rights 50 What Sponsor Actions Are Prohibited? Providing explicit, contractual, exclusive rights.
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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?
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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.
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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.
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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.
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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.
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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.
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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.
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GA 39, Competitive Access 58 What Must the Sponsor Do? (Subject to exceptions and permitted practices noted in following slides)
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GA 39, Competitive Access 59 What Sponsor Actions Are Prohibited? Failing to file required reports after an air carrier has not been accommodated.
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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
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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)
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GA 24, Fee and Rental Structure 62 What Must the Sponsor Do? (Subject to exceptions and permitted practices noted in following slides)
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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.
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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.
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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.
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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.
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GA 24, Air Service Incentive Programs What Must the Sponsor Do? (Subject to exceptions and permitted practices noted in following slides)
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GA 24, Air Service Incentive Programs 68 What May the Sponsor Do? Offer permitted incentives to a new entrant airline.
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GA 24, Air Service Incentive Programs 69 What Sponsor Actions Are Prohibited? Using airport revenue to pay cash subsidies or revenue guarantees.
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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.
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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.
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GA 25, Airport Revenues What Must the Sponsor Do? (Subject to exceptions and permitted practices noted in following slides)
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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.
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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)
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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.
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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.
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GA 25, Mineral Revenue Exception What Must the Sponsor Do? (Subject to exceptions and permitted practices below)
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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.
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GA 25, Mineral Revenue Exception What Are the Exceptions/Limitations to the Exemption? The mineral revenue exemption applies only to general aviation airports.
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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.
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GA 26.a, d, Reports and Inspections What Must the Sponsor Do? (Subject to exceptions and permitted practices noted in following slides)
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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.
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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
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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.
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GA 19, Operations and Maintenance 85 What Must the Sponsor Do? (Subject to exceptions and permitted practices noted in following slides)
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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.
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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.
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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.
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GA 20, Hazard Removal and Mitigation What Must the Sponsor Do? (Subject to exceptions and permitted practices noted in following slides)
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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.
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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.
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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.
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GA 21, Compatible Land Use What Must the Sponor Do? (Subject to exceptions and permitted practices noted in following slides)
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GA 21, Compatible Land Use What May the Sponsor Do? For land that it owns, select lease terms, regulations, or minimum standards, etc.
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GA 21, Compatible Land Use What Sponsor Actions Are Prohibited? Permitting incompatible land uses on property that it owns or controls.
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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?
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GA 11, Pavement Preventive Maintenance What Sponsor Actions Are Prohibited? Failing to develop or implement a pavement maintenance management program meeting FAA standards.
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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.
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GA 29, Airport Layout Plan 99 What Must the Sponsor Do? (Subject to exceptions and permitted practices noted in slides below)
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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.
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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.
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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.
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GA 30, Civil Rights What Must the Sponsor Do? (Subject to exceptions and permitted practices noted in following slides)
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GA 30, Civil Rights What May the Sponsor Do? There is limited discretion under this Grant Assurance.
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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.
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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.
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GA 37, Disadvantaged Business Enterprises What Must the Sponsor Do? (Subject to exceptions and permitted practices below)
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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.
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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.
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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)
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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.
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GA 4, Good Title What Must the Sponsor Do? (Subject to exceptions and permitted practices noted in following slides)
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GA 4, Good Title What May the Sponsor Do? Satisfy the good title requirement with either ownership or through an appropriate lease.
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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.
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GA 5.a, b, e, f, Preserving Rights and Powers (General Requirements) What Must the Sponsor Do?
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GA 5.a, b, e, f, Preserving Rights and Powers (General Requirements) What May the Sponsor Do?
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GA 5.a, b, e, f, Preserving Rights and Powers (General Requirements) What Sponsor Actions Are Prohibited?
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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
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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)
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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.
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GA 5.g, Preserving Rights and Powers (TTF Access) GA 5.g specifically addresses residential through‐the‐fence (TTF)
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GA 5.g, Preserving Rights and Powers (TTF Access) 122 What Must the Sponsor Do?
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GA 5.g, Preserving Rights and Powers (TTF Access) What May the Sponsor Do?
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GA 5.g, Preserving Rights and Powers (TTF Access) 124 What Sponsor Actions Are Prohibited?
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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)
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GA 31.a Disposal of Land (Noise Compatibility) 126 What Must the Sponsor Do?
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GA 31.a Disposal of Land (Noise Compatibility)
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GA 31.a Disposal of Land (Noise Compatibility) What Sponsor Actions Are Prohibited?
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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)
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GA 31.b Disposal of Land (Airport Development) 130 What Must the Sponsor Do?
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GA 31.b Disposal of Land (Airport Development) 131 What May the Sponsor Do?
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GA 31.b Disposal of Land (Airport Development) What Sponsor Actions Are Prohibited?
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Federal Aircraft and Facilities GA 27, Use by Government Aircraft GA 28, Land for Federal Facilities 133
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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.
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GA 27, Use by Government Aircraft What Must the Sponsor Do? (Subject to exceptions and permitted practices noted in following slides)
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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.
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GA 27, Use by Government Aircraft What Sponsor Actions Are Prohibited? Charging a federal agency for aircraft use when operations are not substantial.
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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.
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GA 28, Land for Federal Facilities What Must the Sponsor Do? (Subject to exceptions and permitted practices noted in following slides)
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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.
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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.
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From page 143... ...
Project Specific Requirements 142
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