[Federal Register: December 6, 2000 (Volume 65, Number 235)]
[Notices]
[Page 76340-76345]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr06de00-135]
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DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
Pilot Program To Permit Cost-Sharing of Air Traffic Modernization
Projects
AGENCY: Federal Aviation Administration (FAA), DOT.
ACTION: Notice of final program guidance; request for sponsors'
expressions of interest for air traffic modernization cost-sharing
projects for fiscal years 2001, 2002, and 2003.
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SUMMARY: On August 14, 2000, the FAA issued proposed program guidance
on Section 304 of the Wendell H. Ford Aviation and Investment Reform
Act for the 21st Century (AIR-21), which authorizes a pilot program for
cost-sharing of air traffic modernization projects. The FAA is now
issuing final program guidance and is requesting sponsors' expressions
of interest for cost-sharing projects for fiscal years 2001, 2002, and
2003. The comments that the FAA received on the proposed guidelines and
FAA's responses can be found below under the heading SUPPLEMENTARY
INFORMATION. The purpose of Section 304 is to improve aviation safety
and enhance mobility by encouraging non-Federal investment on a pilot
program basis in critical air traffic control facilities and equipment.
Under the pilot program, the Secretary of Transportation may make
grants to eligible project sponsors for not more than ten eligible
projects, with each project limited to Federal funding of $15,000,000
and a 33 percent Federal cost share. A project sponsor may be a public-
use airport (or a group of public-use airports), or a joint venture
between a public-use airport (and a group of public-use airports) and
one or more U.S. air carriers.
DATES: Initial sponsors' expressions of interest should be received by
the FAA's Air Traffic System Requirements Service on or before January
19, 2001.
ADDRESSES: Sponsors' expressions of interest should be mailed or
delivered, in duplicate, to the Federal Aviation Administration, Air
Traffic System Requirements Service (ARS-1), Room 8206, 400 7th Street,
SW, Washington, DC 20590. Electronic submissions of expressions of
interests will not be accepted. Deliveries may be made between 8:30
a.m. and 5 p.m. weekdays, except Federal holidays. An electronic copy
of this notice may be downloaded using a modem and suitable
communications software from the FAA regulations section of the
FedWorld electronic bulletin board service (telephone: 703-321-3339) or
the Government Printing Office's electronic bulletin board service
(telephone: 202-512-1661).
FOR FURTHER INFORMATION CONTACT: Ward Keech (202-267-3312) or Charles
Monico (202-267-9527), Office of Aviation Policy and Plans (APO),
Federal Aviation Administration, 800 Independence Avenue, SW,
Washington, DC 20590.
SUPPLEMENTARY INFORMATION
1. Background
In performing its mission of providing a safe and efficient air
transportation system, the FAA operates and maintains a complex air
traffic control system infrastructure. Section 304 of the Wendell H.
Ford Aviation and Investment Reform Act for the 21st Century (AIR-21)
authorizes a pilot program to permit cost-sharing of air traffic
modernization projects, under which airports and airport/airline joint
ventures may procure and install facilities and equipment in
cooperation with the FAA. The purpose of Section 304 is to improve
aviation safety and enhance mobility in the air transportation by
encouraging non-Federal investment on a pilot program basis in critical
air traffic control facilities and equipment. The pilot program is
intended to allow project sponsors to achieve accelerated deployment of
eligible facilities or equipment, and to help expand aviation
infrastructure.
This notice responds to congressional direction that the FAA issue
advisory guidelines on implementation of the pilot program.
2. Responses to Comments Requested in August 14, 2000 Federal
Register Notice
The August 14, 2000, notice requested comments on FAA's proposed
program
[[Page 76341]]
guidance. The comments that the FAA received on the proposed guidelines
and FAA's responses to those comments are summarized below:
a. A commenter suggested that the guidance should clearly allow and
explicitly acknowledge that project facilities, equipment and
automation tools may or may not be transferred to the FAA for operation
and maintenance. The commenter points out that the proposed guidance
did not exclude the possibility that certain pilot projects will not be
transferred to the FAA for operation and maintenance. The FAA agrees
with this comment. It was not the intent of the stature or the FAA to
require project transfer. The FAA has changed the guidance to clarify
that the project sponsor may elect to transfer or not transfer the
project to the FAA. The FAA has also clarified the requirement that, at
the time of transfer, the project should be operable and maintainable
by the FAA and should comply with FAA Order 6700.20, Non-Federal
Navigational Aids and Air Traffic Control Facilities, or any successor
Order then in effect. The FAA has also clarified the requirement that,
if the project is not transferred to the FAA, the sponsor remains
liable for all operations and maintenance costs, including the costs of
capital sustainment.
b. A commenter objected to the proposed criterion that the project
be consistent with FAA's air traffic equipment/systems infrastructure
and architecture. The FAA does not concur. It is essential that a pilot
project be compatible and consistent with FAA's air traffic equipment/
systems infrastructure and architecture because FAA is statutorily
liable for operating and maintaining the project if the sponsor elects
to transfer it to the FAA.
c. A commenter objected to the proposed criterion that the project
be a validated project of an FAA program. The FAA does not concur. By
statute, funding to carry out the Federal share of the program may be
available from amounts authorized to be appropriated under 49 U.S.C.
48101(a) (FAA's Facilities and Equipment authorization) for fiscal
years 2001 through 2003. Given that there are no specifically
appropriated funds for the pilot program, FAA has chosen to limit pilot
program eligibility to validated projects of FAA programs. To do
otherwise could result in Federal funding of pilot program projects at
the expense and exclusion of non-pilot program projects which are
generally expected to yield greater returns to the safety and
efficiency of the air transportation system.
d. A commenter expressed concern about the proposed criterion that
project hardware have a useful and expected life of ten years or more.
The commenter noted that the requirement is impractical as applied to
commercial off-the-shelf computers which cannot be maintained cost-
effectively for more than 5 years or so after the purchase date. The
FAA acknowledges the merit of this comment. The FAA has changed the
criterion to ``the project should have a useful and expected life of
ten years or more, notwithstanding the possible need to replace project
components during its operating life.''
3. Final Program Guidance
This section restates the statutory language of AIR-21 Section 304
and outlines FAA's supplementary criteria for the pilot program. FAA's
evaluation and screening criteria are outlined in Section 3.6 of this
notice.
3.1 Eligible Project Sponsors
3.1.1 Statutory Provisions for Sponsor Eligibility
The term ``project sponsor'' means a public-use airport or a joint
venture between a public-use airport and one or more air carriers.
3.1.2 Supplementary FAA Criteria for Sponsor Eligibility
An eligible project sponsor is a public-use airport (or group of
airports), either publicly or privately owned, acting on its own or in
a joint venture with one or more U.S. air carriers. All landing
facilities meeting these criteria are eligible, including but not
limited to commercial service airports, reliever airports, general
aviation airports, heliports, etc. All eligible sponsors are encouraged
to participate.
3.2 Eligible Projects
3.2.1 Statutory Provisions for Project Eligibility
The term `eligible project' means a critical project relating to
the Nation's air traffic control system that is certified or approved
by the Administrator and that promotes safety, efficiency, or mobility.
Such projects may include:
a. airport-specific air traffic facilities and equipment, including
local area augmentation systems, instrument landings systems, weather
and wind shear detection equipment, lighting improvements, and control
towers;
b. automation tools to effect improvements in airport capacity,
including passive final approach spacing tools and traffic management
advisory equipment; and
c. facilities and equipment that enhance airspace control
procedures, including consolidation of terminal radar control
facilities and equipment, or assist in en route surveillance, including
oceanic and offshore flight tracking.
The statute limits the pilot program to 10 eligible projects.
3.2.2 Supplementary FAA Criteria for Project Eligibility
a. The project should be consistent with FAA's air traffic
equipment/systems infrastructure and architecture and should be a
validated project of an FAA program. The project should be initiated
within two years of project approval and completed/commissioned within
five years of project approval (allowing for an environmental impact
study (if necessary), acquisition, supply support, training programs,
etc.).
b. Equipment and facilities should meet applicable FAA advisory
circulars nad specifications. New or modified computer software is
eligible if it meets all other criteria.
c. The project should serve the general welfare of the flying
public; it should not be used for the exclusive interest of a for-
profit entity.
d. Any facility/equipment acquired under the project should be a
new asset, not an asset that the sponsor has already acquired or
committed to acquiring. Either the FAA or the sponsor may use its
acquisition authority and acquisition vehicles to procure and install
facilities and equipment under the pilot program. In the case where the
FAA manages the procurement, existing FAA contracts will be used where
possible. Unless otherwise stipulated in the agreement executed between
the sponsor and the FAA, liability for cost over-runs will be shared
between the FAA and the sponsor in accordance with their project cost
shares (however, the FAA's total cost share is limited by statute to
$15,000,000 per project). Equipment in FAA's inventory that has not
been previously adopted qualifies as eligible equipment.
e. The project should have a useful and expected life of ten years
or more, notwithstanding the possible need to replace project
components during its operating life.
f. If a sponsor submits more than one project nomination, each
project should form part or all of an integrated system.
g. A project may not be co-mingled with other FAA cost-sharing
programs (e.g., the provisions of AIR-21 Section 131 that authorize
cost-sharing programs for airport traffic control tower operations and
construction).
[[Page 76342]]
h. All equipment and structures should meet OSHA standards for
employee safety and fire protection. Where land is involved, the
property should meet all environmental compliance requirements,
including noise, hazardous material, property access, and zoning
rights.
i. A project may not create an increase in the controller or
airways facility workforces during the pre-transfer period (see section
below titled ``Transfer of Facility or Equipment to FAA'').
3.3 Funding
3.3.1 Statutory Provisions for Funding
The Federal share of the cost of an eligible project carried out
under the pilot program shall not exceed 33 percent. No project may
receive more than $15,000,000 in Federal funding under Section 4810(a)
of Title 49, United States Code (FAA's Facilities and Equipment
appropriation). The Secretary shall use amounts appropriated under
Section 48101(a) for fiscal years 2001 through 2003 to carry out the
program.
The sponsor's share of the cost of an eligible project shall be
provided from non-Federal sources, including revenues collected
pursuant to Section 40117 of Title 49, United States Code (passenger
facility charges).
3.3.2 Supplementary FAA Criteria for Funding
FAA is not obligated to fund one-third of the total projects costs;
rather, FAA's share may not exceed this threshold. The project sponsor
must provide two-thirds or more of the total project cost. The Federal
and non-Federal shares of project cost may take the form of in-kind
contributions. If selected for the pilot program, a sponsor may use
passenger facility charge (PFC) revenues to acquire and install
eligible facilities and equipment, but not to fund their operation or
maintenance. Normal PFC processing procedures under Federal Aviation
Regulation 14 CFR Part 158 will be used to approve the imposition of a
PFC or the use of PFC revenue as the non-Federal share of a pilot
program project.
Project funding may be effected through a grant, a cooperative
agreement, or other applicable instrument. Non-Federal matching
contributions applied to any other Federal project or grant may not be
used to satisfy the sponsor's cost share under this pilot program. FAA
may utilize equipment in its inventory that has not been previously
deployed.
The following criteria apply to the calculation of the cost-sharing
ratio:
a. Project costs are limited to those costs that the FAA would
normally incur in conventional facilities and equipment funding (e.g.,
if land/right-of-way must be acquired or leased for a project, its cost
can be included in the cost-sharing ratio only if FAA would otherwise
incur it in conventional program funding).
b. Operations and maintenance costs of the project, both before and
after any sponsor-elected project transfer to the FAA, will not be
considered as part of the cost-share contribution.
c. Non-federal funding may include cash, substantial equipment
contributions that are wholly utilized as an integral part of the
project, and personnel services dedicated to the proposed project prior
to commissioning, as long as such personnel are not otherwise supported
with Federal funds. The non-federal cost may include in-kind
contributions (e.g., buildings). In-kind contributions will be
evaluated as to whether they present a cost that FAA would otherwise
incur in conventional facilities and equipment funding.
d. Aside from in-kind contributions, only funds expended by the
sponsor after the project approval date will be eligible for inclusion
in the cost-sharing ratio.
e. Unless otherwise specified by these criteria, the principles and
standards for determining costs should be conducted in accordance with
OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal
Governments.
f. As with other U.S. DOT cost-sharing grants, it is inappropriate
for a management/administrative fee to be included as part of the
sponsor's contribution. This does not prohibit appropriate fee payments
to vendors or others that may provide goods or services to support the
project.
By statute, funding to carry out the Federal share of the program
may be available from amounts authorized to be appropriated under 49
U.S.C. 48101(a) (FAA's Facilities and Equipment authorization) for
fiscal years 2001 through 2003. FAA funding decisions will be made in
concert with the project evaluation and project selection processes
discussed later in this notice. FAA may choose to use specifically
appropriated funds, to re-program funds from within existing facilities
and equipment project appropriations, or to fund from within existing
budget line items.
The U.S. Department of Transportation and the Comptroller General
of the United States have the right to access all documents pertaining
to the use of Federal and non-Federal contributions for selected
projects. Sponsors should maintain sufficient documentation during
negotiations and during the life of the project to substantiate costs.
3.4 Transfer of Facility or Equipment to FAA
3.4.1 Statutory Provisions for Facility or Equipment Transfer
Notwithstanding any other provision of law, project sponsors may
transfer, without consideration, to the FAA, facilities, equipment, and
automation tools, the purchase of which was assisted by a grant made
under this section. The FAA shall accept such facilities, equipment,
and automation tools, which shall thereafter be operated and maintained
by the FAA in accordance with criteria of the FAA.
3.4.2 Supplementary FAA Criteria for Facility or Equipment Transfer
Project transfer to the FAA will be at the sponsor's election. At
the time of transfer, the project should be operable and maintainable
by the FAA and should comply with FAA Order 6700.20, Non-Federal
Navigational Aids and Air Traffic Control Facilities, or any successor
Order then in effect. If the project is not transferred to the FAA, the
sponsor remains liable for all operations and maintenance costs,
including the costs of capital sustainment.
In the event of transfer, software code, data rights, and support
tools should be provided to the FAA at no cost to the FAA.
3.5 Application Procedures
Application to the pilot program consists of two phases, as
described below. The purpose of Phase 1 is to allow the FAA to gauge
the level of interest, to provide preliminary responses to potential
sponsors without causing applicant sponsors to expend excessive
resources on project applications that have very limited chances of
acceptance because of need or cost, and to plan for subsequent program
implementation. In Phase 2, sponsors will provide more detailed
applications, and final FAA evaluations/project selections will be
completed.
3.5.1 Phase 1: Sponsor's Expression of Interest
A Phase 1 expression of interest should reflect a meaningful
proposal and should not be submitted by a potential sponsor as a
placeholder. The Phase 1 submission is not binding but it should
reflect accurate estimates of project cost and sponsor contributions.
Sponsors should submit written
[[Page 76343]]
expressions of interest in accordance with the sections captioned
ADDRESSES and DATES earlier in this notice. Electronic submissions will
not be accepted. A sponsor's initial expression of interest should
include the following:
a. Identity of sponsor (including point-of-contact's name, mailing
address, telephone number, fax number, and e-mail address) and all
participating authorities or entities in the case of joint ventures.
b. Description and location of the proposed project.
c. Statement of need for the project, including a brief assessment
of the projected benefits--site-specific, regional, and the national
airspace system.
d. Preferred project schedule, including start date, completion
date, and any significant interim milestone dates.
e. Statement of intent to transfer the project to the FAA,
including envisioned date, or intent not to transfer the project to the
FAA.
f. Schedule of estimated project costs, including, (1) Up-front
costs divided into proposed shares between the sponsor and the FAA, and
(2) annual life-cycle operations and maintenance costs (both before and
after transfer if the sponsor elects to transfer the project to the
FAA).
g. Self-assessment of the ability to acquire and commit the non-
Federal share of funding.
The FAA will review and evaluate the expressions of interest
submitted during Phase 1, using a panel of technical program experts.
The FAA will contact the sponsor if it has questions or has suggestions
on how the sponsor may improve its proposal. Following its evaluations
and preliminary selections, the review panel will recommend to the
Director of FAA's Airway Facilities Service and the Director of FAA's
Office of System Architecture and Investment Analysis those applicant
sponsors who should be invited to participate in Phase 2, as described
below. These officials will notify and invite selected sponsors to
participate in Phase 2.
3.5.2 Phase 2: Formal Application and Selection of Projects
During Phase 2 each sponsor that has been invited to participate
should submit an expanded application with the following elements:
Project Description, Economic Analysis, Schedule, Financial Plan,
Letter of Commitment, and a Letter of Acknowledgment/Support from the
applicable State Department of Transportation and/or other appropriate
jurisdiction. The following subsections describe the information needed
by the FAA to evaluate the merits of each application.
a. Project Description: The project description should contain: (1)
The identity of the submitting sponsor (including point-of-contact's
name, mailing address, telephone number, fax number, and e-mail
address) and all participating authorities or entities in the case of
joint ventures; (2) project name and location; and (3) a detailed
project description.
b. Economic Analysis: All applications should describe the need for
the project and demonstrate its safety, efficiency, capacity,
productivity, and other benefits, as applicable, at the airport,
regional, and system-wide levels. The sponsor may conduct its own
analysis, may opt to summarize existing analyses from FAA's acquisition
management system, and/or may use the investment criteria in FAA Order
7031.2C, Airway Planning Standard Number One. The analysis should
include a schedule of project costs, including: (1) Up-front costs
broken down into proposed shares between the sponsor and the FAA; and
(2) annual and life-cycle operations and maintenance costs before and
after transfer to the FAA (if the sponsor elects to transfer). The
level of effort devoted to the analyses should be tailored to the scope
and cost of the project. The economic analyses should be consistent
with FAA guidance contained in Report FAA-APO-98-4, Economic Analysis
of Investment and Regulatory Programs--Revised Guide, and Report FAA-
APO-98-8, Economic Values for Evaluation of Federal Aviation
Administration Investment and Regulatory Programs.
c. Schedule: the Schedule should list all significant proposed
project dates, including the start date, completion date, date of
project transfer to the FAA (if applicable), and key interim milestone
dates. Sponsors are reminded that, at the time of transfer, the project
should be operable and maintainable by the FAA and should comply with
FAA Order 6700.20, Non-Federal Navigational Aids and Air Traffic
Control Facilities, or any successor Order then in effect.
d. Financial Plan: The Financial Plan should contain: (1) The
proposed local and Federal cost shares, (2) evidence of the sponsor's
ability to provide funds for its cost share (e.g., approved local
appropriation or Memorandum of Agreement); and (3) any commitment the
sponsor might choose to offer for the assumption and liability of cost
overruns aside from the liability criterion provided earlier in this
notice.
e. Letter of Commitment: Sponsors should demonstrate a commitment
to the project, as evidenced by a Letter of Commitment signed by all
project participants (including any participating air carriers). The
letter should, at a minimum, include a list of the participating
agencies and organizations in the proposed project; the roles,
responsibilities and relationship of each participant; and the name,
address, and telephone number of the individual representing the
sponsor.
f. Letter of Acknowledgement/Support: The application should
include a letter of acknowledgment/support from the applicable State
Department of Transportation and/or other appropriate jurisdiction (to
avoid circumventing State and metropolitan planning processes).
The FAA will review and evaluate the Phase 2 applications using a
panel of technical program experts, based on the criteria outlined
below in Section 3.6. Following its evaluations, the review panel will
prioritize and recommend to the FAA's Associate Administrator for Air
Traffic Services and the Associate Administrator for Research and
Acquisition those applications that it believes should be accepted. If
the FAA selects a project for inclusion in the pilot program, an
agreement will be executed between the sponsor and the FAA.
3.5.3 Subsequent Application and Selection Cycles (if any)
If fewer than the statutorily-limited ten projects have been
approved following the initial round of Phase 1 and 2 applications, FAA
will repeat the Phase 1 and 2 application processes on an annual basis,
until the earlier of: May 15, 2003, or that point in time when the ten
project limit is reached (see Schedule Summary in Section 3.7 below).
The May 15, 2003, cutoff date is based on an allowance of time for FAA
to process Phase 2 applications and make selections prior to the
statutory authorization expiring at the end of fiscal year 2003. FAA
cannot and does not extend any assurance or implication that any
residual authority will remain following the first round of Phase 1 and
2 applications.
3.6 Application Evaluation and Screening Criteria
The FAA will consider the following elements in evaluating
applications:
a. Compliance with statutory criteria, FAA's supplemental criteria,
and application procedures
b. Degree to which the project relates to FAA's strategic goals for
safety,
[[Page 76344]]
efficiency and mobility, as well as the national airspace system
architecture
c. Impact on the airport, region, and national airspace system
d. Likelihood of project success
e. Availability of FAA resources
f. Ease of administration (acquisition, installation, etc.)
g. Ability of sponsor to provide its cost share
h. Evidence that the project can be implemented in a timely manner
i. Equity and diversity with respect to project type, geography,
and population served
j. Degree of Federal leveraging (degree to which the proposal
minimizes the ratio of Federal costs to total project costs)
k. Cost to the FAA: (1) up-front cost-share; and, if applicable,
(2) post-transfer life-cycle operating and maintenance costs
3.7 Schedule Summary
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Milestone Date
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First-Round of Applications:
Phase 1 Applications due to FAA........................ 1/19/2001
FAA Responses to Sponsors' Phase 1 Applications........ 3/16/2001
Phase 2 Applications due to FAA........................ 6/1/2001
FAA Announcement of First-Round Approvals.............. 7/13/2001
Second-Round of Applications (if needed):
Phase 1 Applications due to FAA........................ 12/14/2001
FAA Responses to Sponsors' Phase 1 Applications........ 2/15/2002
Phase 2 Applications due to FAA........................ 5/15/2002
FAA Announcement of Second-Round Approvals............. 7/15/2002
Third-Round of Applications (if needed):
Phase 1 Applications due to FAA........................ 12/13/2002
FAA Responses to Sponsors' Phase 1 Applications........ 2/14/2003
Phase 2 Applications due to FAA........................ 5/15/2003
FAA Announcement of Third-Round Approvals.............. 7/15/2003
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3.8 Project Implementation Information
During the life of the project, the FAA may collect data from the
sponsor and conduct (with non-project funds) independent evaluations of
the project's impact on safety, efficiency, and mobility objectives.
This will allow the FAA to ascertain the success of the pilot program.
The life of the program is currently limited by AIR-21 to the end of
fiscal year 2003.
4. Impact of Final Guidelines
Potential costs and benefits of the final guidelines have been
reviewed consistent with the intent of Executive Order 12866
(Regulatory Planning and Review), the Regulatory Flexibility Act of
1980, Executive Order 13132 (Federalism), Office of the Secretary of
Transportation direction on evaluation of international trade impacts,
and the Unfunded Mandates Reform Act of 1995.
With respect to the focus of Executive Order 12866, there are no
significant costs imposed by the guidelines. The benefit of the
guidelines is efficient communication between the FAA and potential
project sponsors about the basis and timing which the FAA will employ
in selecting pilot program projects and the type of information needed
by the FAA to evaluate proposed projects. Potential pilot program
project sponsors will only apply for consideration if they believe that
they will benefit from consideration. To minimize the costs of
application, the guidelines encourage sponsors to provide information
wherever possible from existing studies, plans, and other documents.
Further, the guidelines request that initial project proposals provide
limited detail about the project. Potential sponsors will be asked for
additional information only if the FAA believes that the proposal meets
the objective of the pilot program based on the limited initial
information submission. Facilities and equipment currently incorporated
in the federal airport and airway system architecture and approved for
acquisition will be implemented, regardless of whether they are
selected as a pilot project. Further, in implementing the pilot
program, the FAA will not alter the sequence of implementation of
system architecture in a manner that would delay achieving overall
safety or efficiency benefits. Therefore, the FAA believes that the
benefits of the final guidelines exceed their costs.
Airports that are considered small entities may apply to sponsor or
participate in pilot projects. Small airports are defined by the Small
Business Administration as airports owned by local governments for
areas with populations of 200,000 or less. Program participation is
voluntary and, as explained above, the cost of application is not
considered significant. Because, by statute, the majority of project
funding must be provided by the sponsor, few small airports or airlines
are likely to elect to participate in the pilot program. Therefore, the
FAA certifies that the final guidelines will not have a significant
economic impact on a substantial number of small entities.
The FAA has analyzed the final guidelines under the principles and
criteria of Executive Order 13132, Federalism. With few exceptions,
States do not directly own or operate airports, but public airports are
frequently owned and operated by either regional transportation
authorities or local governments. The pilot program authorized by
Congress which is the subject of these guidelines does not require
participation by States, regional transportation authorities, or local
governments, but rather permits the formation of a voluntary
partnership between the FAA, airports, and airlines on projects
considered to be of mutual benefit. These projects will ultimately be
paid for by air passengers and shippers, either through fares or
freight tariffs, airport charges, or aviation user taxes. FAA
facilities and equipment are currently financed by passenger and
shippers through aviation user taxes. Program guidelines described in
this notice are intended to facilitate communication necessary to
implement the pilot projects. By entering into these cooperative
relationships, the FAA will not abrogate its responsibilities for the
provision and maintenance of air traffic control and airway facilities
and equipment, but rather may expedite the implementation of such
facilities and equipment. In the absence of the pilot program, the
facilities and equipment would ultimately be provided by the federal
government and paid for by airline passengers and shippers. Once
completed, the projects will be operated and maintained as a part of
the federal airway system, if the sponsor elects to transfer the
project to the FAA. The FAA has determined that this action does not
have a substantial direct effect on the States, on the relationship
between the national Government and the States, or on the distribution
of power and responsibilities among the various levels of government.
Therefore, the FAA has determined that these guidelines do not have
federalism implications.
The final guidelines will not impose a competitive advantage or
disadvantage on either U.S. air carriers operating abroad or on foreign
carriers operating to and from the United States. Further, these
guidelines, per se, will have no effect on the sale of foreign aviation
products or services in the United States, nor will they have any
effect on the sales of U.S. aviation products in foreign countries. To
the extent that
[[Page 76345]]
pilot program projects improve aviation safety and airport and airway
system efficiency, both domestic and foreign commerce will generally be
enhanced.
The final guidelines do not create a federal mandate. Therefore,
the requirements of Title II of the Unfunded Mandates Reform Act of
1995 do not apply.
5. References
The following list outlines references cited above:
OMB Circular A-87, Cost Principles for State, Local, and Indian
Tribal Governments, revised August 29, 1997.
Report FAA-APO-98-4, Economic Analysis of Investment and
Regulatory Programs--Revised Guide. Available upon request from the
FAA's Office of Aviation Policy and Plans, telephone 202-267-3308.
It may also be found on the Internet at: http://api.hq.faa.gov/
apo_pubs.htm.
Report FAA-APO-98-8, Economic Values for Evaluation of Federal
Aviation Administration Investment and Regulatory Programs.
Available upon request from the FAA's Office of Aviation Policy and
Plans, telephone 202-267-3308. It may also be found on the Internet
at: http//api.hq.faa.gov/apo_pubs.htm.
FAA Order 7031.2C, Airway Planning Standard Number One, through
Change 12. Available upon request from the FAA's Office of Aviation
Policy and Plans, telephone 202-267-3308.
FAA Order 6700.20, Non-Federal Navigational Aids and Air Traffic
Control Facilities. Available upon request from the FAA's NAS
Operations Program Office, telephone 202-267-3034.
Issued in Washington, DC on November 30, 2000.
Nan Shellabarger,
Deputy Director, Office of Aviation Policy and Plans.
[FR Doc. 00-31091 Filed 12-5-00; 8:45 am]
BILLING CODE 4910-13-M