presented to: by: date: federal aviation administration federal aviation administration airports...

Presented to:

By:

Date:

Federal AviationAdministrationFederal Aviation

Administration

Airports Division

Financial Programs

Yampa Valley Reg. Airports Comm.

Chris Schaffer, Colorado State Eng.

July 14, 2011

2Federal AviationAdministration

Airports Financial ProgramsJuly 14, 2011

2

Airports Financial Programs

• Airport Improvement Program (AIP)– Originally authorized by the Airport and Airway

Improvement Act of 1982.– Recodified in 1994 and further amended in 1996,

1999, 2000, 2001, 2002, and 2003.

• Passenger Facility Charge Program (PFC)– Originally authorized by “the Statute” (49 U.S.C.

§40117).– Implemented by 14 C.F.R. Part 158 in 1991.



3

Airport Improvement Program (AIP)

• Highest aviation priority of the United States is the safe and secure operation of the airport and airway system.– Broad objective to assist in the development of a

nationwide system of public use airports.– Maintain existing airport infrastructure.– Increase the capacity of facilities to accommodate

growing traffic demands.

• National Plan of Integrated Airport Systems (NPIAS).



4

National Plan of Integrated Airport Systems (NPIAS)

• Identified $52B in eligible infrastructure development between 2011 and 2015.– Construction costs estimates rose approx. 5%.

• About 60% of the proposed development would rehabilitate existing infrastructure.– Mostly existing pavements.

• About 40% of the proposed development would accommodate increased capacity.– Airfield and terminal expansions etc.



5

Typical Development Needs

• Runways, Taxiways, and Aprons– New construction– Rehabilitation– Lighting– Marking

• Terminals• Roadways

– Access roads– Service roads



6

Typical Development Needs

• Equipment– Aircraft rescue and fire fighting equipment (ARFF)– Snow removal equipment (SRE)– Storage buildings

• Noise Mitigation• Miscellaneous

– Land acquisition– Planning– Environmental mitigation



7

Airport and Airway Trust FundTax Revenue Summary for the Airport and Airway Trust Fund

Aviation Component Computation Percent

Domestic Passenger Ticket Tax (Including Areas of Canada and Mexico Not More Than 225 Miles from the Continental United States)

7.5% 49%

Domestic Passenger Flight Segment $3 per Segment Indexed to Consumer Price Index (CPI)

20%

Passenger Ticket Tax at Rural Airports (Having Less Than 100,000 Boardings and More Than 75 Miles from an Airport with 100,000 Boardings)

7.5% of Ticket Cost (Excludes Flight Segment Component)

1%

International Departure and Arrival Taxes (Where Domestic Tax Does Not Apply)

$12 Per Person Departure Tax Plus $12 Per Person Arrival Tax Indexed to CPI

15%

Special Rule for Flights between Continental US and Alaska or Hawaii

$6 Departure Tax for International Facilities Indexed to CPI, plus a Portion of the Domestic Passenger Ticket Tax

Frequent Flyer Tax 7.5% of Frequent Flyer Award Value 2%

Waybill Domestic Freight and Mail 6.25% of Shipment Cost 5%

Commercial Fuel Tax 4.3¢ Per Gallon 6%

General Aviation Fuel Tax Aviation Gasoline - 19.3¢ Per Gallon Jet Fuel - 21.8¢ Per Gallon

2%



8

Authorizations vs. Appropriations

• AIP is dependant upon two separate Congressional actions.

• Authorization– Gives FAA the authority to use trust fund monies and issue

grants for airport development.– Sets the maximum limit of federal participation.

• Appropriation– Obligation limitations based on economic considerations.– Appropriations are generally less than authorized levels.



9

Authorizations vs. Appropriations



10

Reauthorization?

• Both the House and Senate have passed their respective versions of a reauthorization bill.

• Significant differences remain to be resolved in committee.– AIP funding levels.– Fate of the Essential Air Service (EAS) program.– Slot distribution at Washington National Airport.– Changes to air and rail labor laws.



11

Reauthorization?

• FAA has not had a steady source of funding for nearly 4 years.

• Current legislative authority for the Airport Improvement Program expires on July 22, 2011.– 20th short term continuing resolution since the

program expired in 2007.– Approximately 90% of program entitlement funds are

currently available.



12

Reauthorization?

• Current appropriation for the Airport Improvement Program expires on September 30, 2011. – Provides $3.515B in AIP funding.

• Current authorization does not provide sufficient authority for this level of appropriation.– Final authority could be lower than years past.

• Be prepared for additional extensions.



13

NPIAS Airports



14

U.S. Airport System



15

Airport Categories



16

AIP Distribution



17

FAA Regions



18

Entitlement Funds

• Primary Airports– Entitlements are based upon the number of

passenger boardings at the airport.• Minimum $1,000,000 per year.• Maximum $26,000,000 per year.

– Yampa Valley Regional (HDN)• Approx. 110,000 enplanements (CY-10).• Approx. $1,350,000 annual entitlement.



19

Entitlement Funds

• Non-Primary Airports– Entitlements are calculated as a percentage (20%)

of the documented capital needs for the facility.• Maximum $150,000 per year.

– Steamboat Springs/Bob Adams Field (SBS)• $150,000 annual entitlement.

– Craig/Moffat County Airport (CAG)• $150,000 annual entitlement.



20

AIP Funding History

• Yampa Valley Regional (HDN)– 37 AIP grants.– $42,903,825.00

• Steamboat Springs/Bob Adams Field (SBS)– 20 AIP grants.– $9,946,202.00

• Craig-Moffat County (CAG)– 12 AIP grants.– $2,484,767.00



21

Passenger Facility Charge Program (PFC)

• Any public agency that controls a commercial service airport, may impose a fee for each enplaned passenger at that facility.– Can choose PFC levels of either $1, $2, $3, $4, or

$4.50.• These revenues can be used on eligible

projects at any airport controlled by the public agency.– AIP and PFC eligibility rules are generally the same.



22

PFC Related to AIP?

• PFC funds are considered a special type of local airport revenue.– PFC funds can be used as the local match on an

AIP project.– PFC funds can be used to supplement an AIP

project.– PFC funds can be used to pay debt service and

financing costs.



23

Local Revenue

• Projects funded exclusively with PFC revenue are not subject to certain federal requirements.– Davis-Bacon wage rates.– Disadvantaged Business Enterprise (DBE) goals.– Buy-American requirements.– Uniform Relocation Assistance and Real Property

Acquisition Policy Act requirements.



24

PFC Objectives

• PFC projects must meet one or more distinct objectives:– Preserve or enhance safety, security, or capacity.– Reduce or mitigate noise impacts.– Furnish enhanced competition among air carriers.

• And if approved higher than the $3 level:– The project cannot be reasonably expected to be

funded from AIP.– For any landside project, all airside needs must be

met first.



25

Small Airport Fund

• AIP entitlements at large and medium hub airports imposing a PFC are reduced and the funds returned to the AIP program.– 12.5% to the AIP discretionary fund.– 12.5% to small hub airports.– 25% to general aviation airports.– 50% to non-hub primary airports.



26

PFC Funding History

• Yampa Valley Regional (HDN)– 45 projects funded.– $5,386,500.00

• Steamboat Springs/Bob Adams Field (SBS)– 6 projects funded.– $159,575.00



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presented to: by: date: federal aviation administration federal aviation administration airports...

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