1. Federal Aviation Administration 1 Eastern Regional Conference March 2, 2011 Hershey, PA Office of Airport Planning and Programming Airport Improvement Program (AIP) Handbook Rewrite Federal Aviation Administration Prepared for:Airports Division, Eastern Region Annual Conference Hershey, PA Presented by:Nancy S. Williams Office of Airport Planning and Programming Date: March 2, 2011

2. Federal Aviation Administration 2 Eastern Regional Conference March 2, 2011 Hershey, PA Overview of the “AIP Handbook” What Is It? Who Uses It? Why Is It Important? Why Change It Now? Process Timetable Agenda

3. Federal Aviation Administration 3 Eastern Regional Conference March 2, 2011 Hershey, PA FAA Order 5100.38C (“Airport Improvement Program”) Generally referred to as “the AIP Handbook” The current “Handbook” is the fourth iteration, starting in 1982 and updated in 1989, 2002, and 2005. Includes: —Interpretation of legislation —Legislative history —Agency policy —Procedural instructions —Forms and checklists What Is It?

4. Federal Aviation Administration 4 Eastern Regional Conference March 2, 2011 Hershey, PA FAA Orders traditionally internal documents, but all orders now widely available via the internet, and used by: —FAA Office of Airports management and staff —FAA personnel —Other FAA operational units and staff offices —State aeronautical agencies —Airport sponsors —Consultant community —Audit and oversight agencies —Others Who Uses It?

5. Federal Aviation Administration 5 Eastern Regional Conference March 2, 2011 Hershey, PA Why is it Important?

6. Federal Aviation Administration 6 Eastern Regional Conference March 2, 2011 Hershey, PA Why is it Important? Airport Owner (“Sponsor”) Airport improvement projects Airport & Airway Trust Fund Ticket-tax revenues

7. Federal Aviation Administration 7 Eastern Regional Conference March 2, 2011 Hershey, PA

8. Federal Aviation Administration 8 Eastern Regional Conference March 2, 2011 Hershey, PA

9. Federal Aviation Administration 9 Eastern Regional Conference March 2, 2011 Hershey, PA

10. Federal Aviation Administration 10 Eastern Regional Conference March 2, 2011 Hershey, PA Legislative, regulatory and policy changes over the years have led to: —Complex layers of information; —Too many cross-references; —Redundant references; and —Outdated references. Current version tries to do too much: —Historical interpretation of legislation; —Explanation of policy decisions; and —Policies, procedures and resources. Why Change It Now?

11. Federal Aviation Administration 11 Eastern Regional Conference March 2, 2011 Hershey, PA History of the Program Airport and Airway Improve- ment Act 1982 1987 Airport and Airway Safety and Capacity Expansion Act Aviation Safety and Capacity Expansion Act 1990 1992 Airport and Airway Safety, Capacity, Noise Improvement and Intermodal Transportation Act Federal Aviation Reauth. Act 1996 2000 AIR-21 Vision 100 2003 You are here 2011 2007 Current authorization expired 9/30/2007 With AIP Handbook updates

12. Federal Aviation Administration 12 Eastern Regional Conference March 2, 2011 Hershey, PA Shorter document Easier to follow Eliminate redundancy Clarify what is required and what has flexibility Minimum number of cross references Subjects of interest to FAA only (internal document processing) removed and placed in new internal reference system Objectives

13. Federal Aviation Administration 13 Eastern Regional Conference March 2, 2011 Hershey, PA Basic Handbook —14 chapters (1,427 numbered paragraphs in 255 pages) —30 appendices (102 pages) Broad Sections —Chapters 1-3 – General Chapters —Chapters 4-8 – Eligibility and Allowable Costs of Specific Work Items —Chapters 9-13 – Procurement and Administrative Matters —Chapter 14 – Labor and Civil Rights Current Organizational Structure

14. Federal Aviation Administration 14 Eastern Regional Conference March 2, 2011 Hershey, PA New Handbook will be organized thematically Introduction – General program information Sponsorship – Who can get a grant? Decision chapter – What are the requirements for project approval? Allowable Costs – What can a grant pay for? Procurement and contracting Special programs – LOI’s, State Block Grants, MAP, etc. Grant processing – Steps to take for grant agreement, amendment and closeout Tables of specific eligibility by topic Future Vision

15. Federal Aviation Administration 15 Eastern Regional Conference March 2, 2011 Hershey, PA What types of projects are eligible? How does the FAA determine justification? What types of costs meet project requirements? What types of costs are allowable? Companion Operations Manual that will have the “How To’s”, examples, detailed description of processes, yearly update letters Future Vision (cont’d)

16. Federal Aviation Administration 16 Eastern Regional Conference March 2, 2011 Hershey, PA Eligibility Versus Justification Justification is based on need—established or reasonably forecast aeronautical demand, if FAA concurs. Projects exceeding standards not funded. Due to nature of Advisory Circulars, the mere mention of a facility or piece of equipment does not make it justified—the specific airport still has to demonstrate the need. Projects may be eligible but not justified.

17. Federal Aviation Administration 17 Eastern Regional Conference March 2, 2011 Hershey, PA Eligible Projects versus Allowable Costs Eligible means that the project meets the required definitions and criteria for airport development, planning or noise mitigation. Allowable means that the cost is reasonable and necessary for the successful completion of the project.

18. Federal Aviation Administration 18 Eastern Regional Conference March 2, 2011 Hershey, PA Allowable Costs FAA finds cost reasonable and necessary for project accomplishment. Generally must be incurred after grant award, with some limited exceptions: —Projects funded with entitlements; —Project formulation costs; —Land acquisition; —Noise projects in an approved Part 150 —Design-build projects —Letters of Intent (LOI)

19. Federal Aviation Administration 19 Eastern Regional Conference March 2, 2011 Hershey, PA Survey sent out to all FAA Airports employees Scoping meetings held at FAA HQ with upper management Meetings held in three locations nationally (Eastern Region, Central Region, Western-Pacific Region) with all regions Pre-review of Handbook held with 6 regional topic experts Stakeholders contacted for comments and recommendations Draft of Handbook sent out to FAA Airports employees Fall 2010 Process and Stakeholder Input

20. Federal Aviation Administration 20 Eastern Regional Conference March 2, 2011 Hershey, PA AIP Handbook Survey

21. Federal Aviation Administration 21 Eastern Regional Conference March 2, 2011 Hershey, PA Comments from FAA employees are being incorporated into the handbook. Because this is a total rewrite, it will then undergo legal review. After legal review, the current plan is to make it available for public comment. Goal is Summer 2011 for public review. Date that it will be available to the public for additional comments and review is dependent on legal review. Comments from public review will be incorporated, document will undergo full legal sufficiency review and then be approved for use. Timetable

22. Federal Aviation Administration 22 Eastern Regional Conference March 2, 2011 Hershey, PA Fundamental restructuring Complex relationships with: —NPIAS and ACIP processes —Planning and design standards —Other statutory and regulatory requirements —Environmental and noise program requirements —Passenger Facility Charge (PFC) program —CFR Part 139 (airport certification program) —Number of different project types and airport classifications —Complexity of AIP structure (i.e., subcategories within AIP) —AIP grant assurances What’s So Complicated About Updating It?

23. Federal Aviation Administration 23 Eastern Regional Conference March 2, 2011 Hershey, PA Capacity-Safety-Security- Noise (CSSN) 10.5% Noise 8.1% Reliever 0.2% MAP 0.9% Remaining Discretionary 3.5% Primary Entitlements 24.7% State Apportionment 7.9% Protected Entitlements 13.8% Cargo Entitlements 3.5% Nonprimary Entitlements 12.1% Alaska Supplemental 0.6% Small Airport Fund 14.2% What’s So Complicated About Updating It? (cont’d) Data Source: Preliminary FY-2008 data (pending publication).

24. Federal Aviation Administration 24 Eastern Regional Conference March 2, 2011 Hershey, PA What’s So Complicated About Updating It? (cont’d) Factors affecting project funding eligibility: —Classification of airport —Type of proposed facility (e.g., runway, taxiway, apron, terminal, lighting, navaids, etc.) —Type of work (e.g., new, expansion, rehabilitation, standards) —Specific categories of AIP funding involved —Timing of project —Location of proposed project

25. Challenges of a Growing Aviation System Presentation to: Name: Date: Federal Aviation Administration Federal Aviation Administration Federal Aviation Administration Questions? Suggestions?