AIP Handbook Clarifications
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1 AIP Handbook Clarifications FAA Order D Presented to: CAOA 2015 Winter Conference By: Linda Bruce and Kevin Luey Date:
2 AIP Orders and Regulations The Airport Improvement Program (AIP) is unique in that it does not have a published regulation The predecessor programs, FAAP and ADAP, regulated under 14 CFR Parts 151 and 152 Instead, the FAA Order , which should be internal direction to FAA employees, is widely and publically used as the principle source of AIP guidance 2
3 AIP Authority 49 U.S.C. Chapter 471 and 475 provide FAA the authority to issue federal grants for airport development and planning since 1982 AIP funding is usually spent on projects that support aircraft operations including runways, taxiways, aprons, noise abatement, land purchase, and safety, emergency or snow removal equipment 3
4 AIP Handbook Rewrite The updated handbook incorporates all AIP published guidance and statutory changes The handbook will also be more Internet accessible, can be revised more easily, and provides clear general principles Effective date is September 30, 2014 Available online at ok/ 4
5 AIP Handbook Rewrite The updated handbook cancels the two FAA orders: FAA Order C, Airport Improvement Program Handbook (dated June 28, 2005) FAA Order C, Programming Control and Reporting Procedures Grant-In-Aid Program (dated December 7, 1999) 5
6 Purpose of AIP Handbook Rewrite The AIP Handbook rewrite is a complete restructuring of the AIP guidance. The new handbook - Uses plain language and clearly state general principles Incorporates the Program Guidance Letters (PGLs) and Memorandums (PIMS) Incorporates changes to AIP in the recent FAA reauthorization Conforms the AIP Handbook to current practice 6
7 Purpose of AIP Handbook Rewrite New format will allow for easier revisions and updates A change is already being prepared to correct inadvertent omissions and errors, such as the deletion of the disclaimer regarding the US commitment to funding development shown on an ALP. Please let FAA know if you find a mistake or omission 7
8 Purpose of AIP Handbook Rewrite The new handbook Eliminates the extensive cross referencing as in prior handbook; instead it provides clear tables where needed, Clearly indicates the statutory or regulatory basis for AIP requirements, and Indicates where ADO or sponsor actions are optional or required. Clarifies ineligible or non-allowable items, based on commonly misunderstood eligibility questions 8
9 Purpose of AIP Handbook Rewrite Since the last handbook was published, there have been shifts in the way airports operate and the updated handbook reflects those changes. For example, FAA is using RNAV approaches instead of installing new ILS As TSA evolves, its terminal requirements and funding sources are changing Provisions of the 2012 FAA Reauthorization have been included 9
10 Purpose of AIP Handbook Rewrite Clarifies if the authorizing statute does not provide the authority to fund an action or item, it can t be funded under the AIP Dispels myth that expenditures of AIP funds is permissible unless prohibited by the statute. Reinforces that FAA may fund items specified in the authorizing statue only if it determines these items are justified 10
11 Purpose of AIP Handbook Rewrite While layout, order and language of the updated handbook is very different from previous versions, it may give the appearance that FAA has made extensive policy changes No policy changes have been made Clarifies that the AIP authorizing statue is a permissive statute it only gives permission to do certain things 11
12 Handbook Organization Consists of 6 chapters and 26 appendices Chap. 1 - What do I need to know about this Handbook? Chap. 2 - Who can get a grant? Chap. 3 - What projects can be funded? Chap. 4 - What AIP funding is available? Chap. 5 - How does the grant process work? Chap. 6 - What special AIP funding programs are available? 12
13 Handbook Appendices Definitions References Prohibited Projects and Unallowable Costs Project Specific Requirements (by project type 17 appendices, such as runway, taxiway, terminal, road, equipment, or environmental projects) Sponsor Procurement Requirements Forms 13
14 Handbook Appendices Revenue Sources for the Airport and Airway Trust Fund Competition Plans Buy American Guidance Grant Assurances Memorandum of Understanding between the Office of Airports and the Air Traffic Organization on Instrument Approaches 14
15 Handbook Appendices Incorporation of 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards 2 CFR 200 consolidates all policies and procedures that are applicable to federal awards into a single regulation, including procurement and audit requirements Applies to Federal agencies that make Federal awards to non-federal entities. These requirements are applicable to all costs related to Federal awards 15
16 New Guidance Tables Tables 3-4 and 3-5, Criteria to Determine a Project is Justified and examples of projects not meeting justification criteria Table 3-8, Minimum Useful Life (facility, equipment, vehicles or land) Table 3-11, Eligible Off-Airport Projects Table 3-17, Limited Circumstances Where Work Exceeding FAA Standards May be Funded with AIP Appendices contain tables with project specific requirements for AIP eligible projects 16
17 Example of Planning Clarification Determining eligibility of a business plan in prior handbook required searching several sections, including Paragraph 403(a)(3), Paragraph 300 (b) and Paragraphs 405(a) and 406(a) Ultimately a business plan is an ineligible planning project - considered an operational process rather than a planning because it doesn t satisfy a specific airport need or meet the criteria for a planning study specified by the authorizing statute 17
18 Example of Planning Clarification Updated Handbook, Table C-6, Examples of Prohibited Projects/Costs for Planning or Environmental (9) Airport Master Planning Study - Certain Planning Elements. The following are not allowable elements in an airport master plan or as stand-alone planning projects: (a) Asset management planning (b) Aviation business park analysis (c) Business plans (d) Economic benefit studies (e) Information technology (IT) master plan or analysis (f) Marketing studies (g) Minimum standards development (h) Rates and charges analysis (i) Rules and regulations development (j) Snow removal plans (k) Strategic business plans (l) Surface movement guidance and control system (SMGCS) plans (m) Tower sighting studies beyond what general areas will work unless AIP is paying for the tower 18
19 Clarification of Construction/Equipment Policy Table 3-1, The 15 General Requirement for Project Funding - project must meet the 15 requirements for ADO to consider it for AIP funding Eligible does not automatically mean Justified The useful life of facility/equipment being rehabilitate, reconstructed or replaced must have been met in order for the project to be funded 19
20 Clarification of Construction/Equipment Policy Table 3-17, Limited Circumstances Where Work Exceeding FAA standards May be Funded with AIP Section 3-29, ADO Review of Plans and Specifications Table 3-20, Required Contents for Engineer s Reports 20
21 FAA Northwest Mountain Region Denver Airports District Office Linda Bruce Colorado State Planner (303) Kevin Luey Colorado State Engineer (303)
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