[Federal Register Volume 87, Number 76 (Wednesday, April 20, 2022)]
[Notices]
[Pages 23690-23695]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-08412]


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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

[Docket No: FAA-2022-0223]


FY 2022 Competitive Funding Opportunity: Airport Improvement 
Program Discretionary Grants

AGENCY: Federal Aviation Administration, U.S. Department of 
Transportation.

ACTION: Notice of funding opportunity.

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SUMMARY: The U.S. Department of Transportation's Federal Aviation 
Administration (FAA) announces the opportunity to apply for 
approximately $1.5 billion in Fiscal Year (FY) 2022 discretionary 
grants under the Airport Improvement Program (AIP). FAA will award 
these annually appropriated discretionary funds through the FAA's long-
standing iterative, competitive grant process. Prior to the publication 
of this Notice of Funding Opportunity (NOFO), the FAA identified 
eligible applicants in its National Plan of Integrated Airport Systems 
(NPIAS) and compiled potentially eligible projects

[[Page 23691]]

through the 3-year Airports Capital Improvement Plan (ACIP). Both of 
these processes are described in FAA Order 5090.5, Formulation of NPIAS 
and ACIP that authorizes discretionary funds. The AIP funds airport 
capital improvements and rehabilitation projects. All discretionary 
grant funding is subject to appropriations, statutory requirements, and 
related program funding availability.

DATES: Sponsors that wish to be considered for all opportunities for 
discretionary funding throughout FY 2022 should submit applications 
that meet NOFO requirements as soon as possible, but no later than 
Thursday, June 30, 2022, 11:59 Eastern time to FAA Regional or Airport 
District offices per instructions in this NOFO. The FAA will consider 
all applications properly submitted prior to this NOFO. Discretionary 
grant applications should be based on bids.

FOR FURTHER INFORMATION CONTACT: David F. Cushing, Manager, Airports 
Financial Assistance Division, APP-500, at (202) 267-8827.

SUPPLEMENTARY INFORMATION:

A. Program Description

    Under 49 U.S.C. 47104, the FAA may issue grants for airport 
planning and development in the United States. Eligible projects 
include those improvements related to enhancing airport safety, 
capacity, security, and environmental concerns. In addition, 49 U.S.C. 
47101(1) states that it is the policy of the United States that the 
safe operation of the airport and airways system is the highest 
aviation priority, and 49 U.S.C. 47101(7) states that airport 
construction and improvement projects that increase the capacity of 
facilities to accommodate passenger and cargo traffic be undertaken to 
the maximum feasible extent so that safety and efficiency increase and 
delays decrease. The FAA's safety mission is incorporated into many 
aspects of the AIP program including, for example: Justification 
requirements for safety and security projects, allowance for certain 
Safety Management System (SMS) and Safety Risk Management (SRM) costs, 
and allowance for safety and security equipment projects. Within 
discretionary funding, safety is incorporated as a scoring factor in 
the quantitative formula, which is the National Priority Rating (NPR) 
discussed below.
    The AIP provides grants to public agencies--and, in some cases, to 
private owners and entities--for the planning and development of 
public-use airports that are included in the NPIAS. The AIP was 
authorized by the Airport and Airway Improvement Act of 1982 (Pub. L. 
97-248), which Congress recodified in 1994 as 49 U.S.C. 47101, et seq. 
(Pub. L. 103-272). The AIP statutes have been amended several times, 
most recently with the passage of the FAA Reauthorization Act of 2018 
(Pub. L. 115-254) and subsequent legislation.
    The AIP Assistance Listing is 20.106, with the objective to assist 
sponsors, owners, or operators of public-use airports in the 
development of a nationwide system of airports sufficient to meet the 
needs of civil aeronautics. This includes preserving existing airport 
infrastructure in a safe and functional operational condition; bringing 
airport facilities into conformity with current federal safety 
standards; constructing, modifying, or expanding facilities as 
necessary to meet demonstrated aeronautical demand; enhancing 
environmental sustainability; and providing a balanced system of 
airports to meet the roles and functions necessary to support civil 
aeronautical demand.
    The FY 2022 AIP will be implemented, as appropriate and consistent 
with AIP statutory criteria and Executive Order 14008, Tackling the 
Climate Crisis at Home and Abroad (86 FR 7619). In addition to 
promoting safety, FAA seeks to fund projects that reduce greenhouse gas 
emissions and are designed with specific elements to address climate 
change impacts. Specifically, the FAA is looking to award projects that 
align with the President's greenhouse gas reduction goals, promote 
energy efficiency, support fiscally responsible land use and efficient 
transportation design, support airport development compatible with the 
use of sustainable aviation fuels and technologies, increase climate 
resilience, incorporate sustainable pavement and construction materials 
as allowable, reduce pollution, and direct the benefits of these 
investments equitably. Specifically for AIP, the FAA encourages 
applicants to consider how a proposed project directs benefits of 
investments in Voluntary Airport Low Emission (VALE) and Zero Emissions 
Vehicle (ZEV) programs to disadvantaged communities and ensures 
meaningful public engagement, under Executive Order 14008, section 223, 
recognizing that these limited programs direct vehicles for primarily 
on-airport uses.
    In support of Executive Order 13985, Advancing Racial Equity and 
Support for Underserved Communities Through the Federal Government (86 
FR 7009), the FAA encourages applicants to consider how the project 
will address the challenges faced by individuals and underserved 
communities in rural areas.
    All recipients of federal funding are subject to Title VI of the 
Civil Rights Act of 1964, and accompanying regulations; the Americans 
with Disabilities Act; Section 504 of the Rehabilitation Act of 1973; 
and the associated terms and conditions of any new grant agreements 
pursuant to this NOFO as well as prior agreements for AIP grants 
executed by grantees. See also 28 CFR 50.3 (U.S. Department of Justice 
Guidelines for Enforcement of Title VI of the Civil Rights Act of 
1964); and 49 CFR part 28 (entitled Enforcement of Nondiscrimination On 
The Basis Of Handicap in Programs or Activities Conducted by the 
Department of Transportation). In certain circumstances, failure to 
ensure that Limited English Proficiency (LEP) persons can effectively 
participate in or benefit from federally assisted programs and 
activities may violate the prohibition under Title VI of the Civil 
Rights Act of 1964, 42 U.S.C. 2000d, and Title VI regulations against 
national origin discrimination.
    Due to the agency's implementation of the AIP statutory process for 
determining discretionary funding awards, the FAA did not previously 
issue NOFOs for competitive grants. This is the first fiscal year the 
FAA is issuing a NOFO for this well-established capital infrastructure 
program.

B. Federal Award Information

    On average, for the last ten years, $3.35 billion has been 
appropriated annually for AIP. AIP grants include both apportioned (or 
entitlement) and discretionary (or competitive) funds. Apportioned 
funds are allocated in accordance with 49 U.S.C. 47114, based on an 
airport's size and level of activity. Discretionary funds are made 
available in accordance with 49 U.S.C. 47115 and 49 U.S.C. 47117.
    Public Law 115-254, titled ``FAA Reauthorization Act of 2018,'' 
authorizes $3.35 billion in funding authority for the AIP to administer 
grants for airport planning, development, and noise compatibility 
planning and programs each fiscal year from October 1, 2018, through 
September 30, 2023.
    This NOFO is being issued under the Consolidated Appropriations 
Act, 2022 (Pub. L. 117-103). Funding beyond the current available 
program amount, is subject to appropriations and the availability of 
future funds.
    In FY 2021, 404 discretionary grants were issued, totaling 
approximately $1.5 billion. The discretionary grants ranged in amount 
from $25,000 to $37,000,000.

[[Page 23692]]

The average AIP discretionary grant was $4,000,000. In FY 2022, the FAA 
anticipates awarding discretionary grants beginning in April 2022 with 
an individual grant 4-year period of performance.
    The AIP is an annual program, and AIP projects are funded based on 
a planning process described in Order 5090.5, Formulation of NPIAS and 
ACIP. In this process, the FAA works with potential award recipients on 
eligible and justified development needs.
    The FAA uses the NPIAS to identify airports that have a role in the 
National Airspace System (NAS) and all potential airport development 
projects that are eligible for AIP funding at those airports. The FAA 
formulates a 3-year ACIP to guide the assignment of AIP funding to 
projects based on airport development needs identified in the NPIAS. 
The 3-year ACIP, as a subset of the NPIAS, is an annual process for 
reviewing the NPIAS for development project needs. From this ACIP the 
FAA identifies candidates that are ready to accept a grant, including 
those that may apply for discretionary funding. Discretionary funding 
includes 5 types of set-aside funding categories, further described in 
Section D. 5. The process begins with each eligible airport operator 
submitting its individual airport capital improvement plan, and follows 
with the formulation of the NPIAS Report, the National ACIP, and the 
Discretionary Candidate List (DCL). The DCL accounts for all AIP 
projects competing for discretionary funding for the first year of the 
3-year ACIP. The DCL is prioritized based on quantitative and 
qualitative criteria, which are discussed in greater detail in NOFO 
section E. 1. and E. 2.

C. Eligibility Information

1. Eligible Applicants

    Eligible applicants are public agencies owning a public-use NPIAS 
airport; private entities owning a public-use NPIAS airport; States 
acting as a sponsor for one or more specific NPIAS airports in the 
State; Indian tribes or pueblos owning or leasing a public-use NPIAS 
airport; the Secretary of the Interior for Midway Island Airport; the 
Republic of the Marshall Islands; the Federated States of Micronesia; 
and the Republic of Palau, and other applicants as outlined in Table 2-
1 of Order 5100.38, Airport Improvement Program Handbook ``AIP 
Handbook'' available at: https://www.faa.gov/airports/aip/aip_handbook/.

2. Cost Sharing or Matching

    AIP grants generally have Federal shares ranging from 70 percent to 
95 percent. The Federal share percentage is based on the airport size 
and type of project per statute. Federal share by airport and project 
type can be found in Chapter 4 of the AIP handbook.

3. Project Eligibility

    Discretionary funds are made available in accordance with 49 U.S.C. 
47115, 49 U.S.C. 47117, and 49 U.S.C. 47120 to fund needs that exceed 
an airport's available apportioned funds. Apportioned funds are 
allocated in accordance with 49 U.S.C. 47114 and must be used on an 
airport's highest priority project(s). Discretionary funding is 
determined after entitlement funding has been determined. However, the 
FAA reviews both discretionary grants and entitlement grants for 
eligibility and justification per the statutory ACIP process as 
described below.
    All projects funded with AIP must be justified and eligible under 
49 U.S.C. 48103, as further outlined in Chapter 3 of the AIP Handbook. 
Eligible projects include those improvements related to enhancing 
airport safety, capacity, security, and environmental sustainability as 
well as evidence showing compliance with federal civil rights laws. In 
general, sponsors can receive AIP funds for most airfield capital 
improvements or rehabilitation projects and, in some specific 
situations, for terminals, hangars, and nonaviation development. 
Certain professional services that are necessary for eligible projects 
(such as planning, surveying, and design) may also be eligible. The FAA 
must be able to determine a proposed project is justified based on 
civil aeronautical demand. The projects must also meet Federal 
environmental, Buy American, and 2 CFR part 200 procurement 
requirements.
    The discretionary planning process is a subset of the ACIP 
formulation process. Funds are assigned to projects in the ACIP based 
on project priority, funding types, and project type. Assignment of 
funds in the ACIP does not guarantee funding. Funding levels may vary 
based on annual appropriations. Discretionary projects in the ACIP are 
evaluated for priority and readiness in accordance with the AIP 
Handbook. Inclusion of a project in the national ACIP does not 
constitute a commitment of Federal funding. For a project to be funded 
under AIP, it must meet the prerequisites for funding, as found in the 
AIP Handbook ``Table 3-1--The General Requirements for Project 
Funding.'' These prerequisites include, but are not limited to, the 
project being included in the airport's approved layout plan, an 
environmental determination, all necessary airspace studies, title to 
land, the satisfaction of intergovernmental review and airport user 
consultation requirements, and reasonable project readiness. For the 
complete list, refer to the Handbook Table 3-1, available at https://www.faa.gov/airports/aip/aip_handbook/?Chapter=3#S0301. The release of 
funds for each individual grant project is contingent upon grant 
recipients meeting all of these prerequisite milestones.

D. Application and Submission Information

1. Address To Request Application Package

    All inquiries should be directed to the appropriate Regional Office 
(RO) or Airport District Office (ADO). RO/ADO contact information is 
below. https://www.faa.gov/airports/regions/.
    Application forms are at: https://www.faa.gov/airports/resources/forms/.

2. Content and Form of Application Submission.

    For content and application information, reference Standard 
Operating Procedure for FAA Review and Approval of an Airport 
Improvement Program (AIP) Grant Application. https://www.faa.gov/airports/resources/sops/media/arp-sop-600-grant-application.pdf.
    The final grant application funding requests should be based on 
bids or firm costs, not estimates. In addition, in FY 2022, the FAA 
will consider eligible and justified projects per statute 49 U.S.C. 
47103, 47104, 47106, 47107, 47108, and 47109 that further the 
Administration's goals of safety, environmental stewardship, including 
climate change and sustainability, equity, creation of good jobs and 
infrastructure investment aligning with Executive Orders identified in 
this NOFO. Applications should briefly describe how the proposed 
project meets at least one of these goals. The Administration's Goals 
are identified for each discretionary project based on the following 
definitions.
    Equity--Projects that advance equity for all, including people of 
color and others who have been historically underserved, marginalized, 
and adversely affected by persistent poverty and inequality. Examples 
are projects in Economically Distressed Areas (EDA), projects to meet 
ADA requirements, and projects in Tribal communities. The statutory 
criteria used for EDA impacted

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communities is explained at the Economically Distressed Areas (EAS/EDA 
Determinations) Special Rule web page. This definition also applies to 
statutory requirements under 49 U.S.C. 47102(3)(f) Airport Development 
and 47123 Non discrimination. In addition, FAA must assess that all 
grantees are compliant with Title VI of the Civil Rights Act of 1964, 
Section 504 of the Rehabilitation Act, and other federal civil rights 
statutes.
    Environmental Stewardship--Projects that promote an equitable, 
clean energy future as well as standards that protect our air, water, 
and communities. Examples are any environmental improvements, noise 
projects, VALE/ZEV, deicing containment, and drainage improvements.
    Job Creation--Projects that create good jobs in the community and 
support good paying construction jobs. Examples are projects to expand 
cargo or manufacturing operations, fuel farms, hangars and terminals.
    Infrastructure Investment--Capital airport development projects, 
including projects that repair, renew, and upgrade the airports' 
infrastructure. ``Airport development'' is defined in 49 U.S.C. 
47102(3) and includes a list of activities if those activities are 
undertaken by the sponsor, owner, or operator of a public-use airport.
    As stated, safety enhancements and the preservation of a safe 
environment is an element of nearly every AIP project.

3. Unique Entity Identifier and System for Award Management (SAM)

    Applicants must comply with 2 CFR part 25--Universal Identifier and 
System for Award Management. All applicants must provide a unique 
entity identifier provided by SAM. Additional information about 
obtaining a Unique Entity Identifier (UEI) and registration procedures 
may be found at the SAM website (currently at http://www.sam.gov). Each 
applicant is required to: (1) Be registered in SAM before submitting an 
application; (2) provide a valid UEI in its application; and (3) 
continue to maintain an active SAM registration with current 
information at all times during which the applicant has an active 
Federal award or an application or plan under consideration by the FAA. 
Under the AIP, the UEI and SAM account must belong to the entity that 
has the legal authority to apply for, receive, and execute AIP grants.
    Once awarded, the FAA grant recipient must maintain the currency of 
its information in the SAM until the grant recipient submits the final 
financial report required under the grant or receives the final 
payment, whichever is later. A grant recipient must review and update 
the information at least annually after the initial registration and 
more frequently if required by changes in information or another award 
term.
    The FAA may not make an award until the applicant has complied with 
all applicable UEI and SAM requirements. If an applicant has not fully 
complied with the requirements by the time the FAA is ready to make an 
award, the FAA may determine that the applicant is not qualified to 
receive an award and use that determination as a basis for making a 
Federal award to another applicant.
    Non-Federal entities that have received a Federal award are 
required to report certain civil, criminal, or administrative 
proceedings to SAM (currently the Federal Awardee Performance and 
Integrity Information System (FAPIIS) www.fapiis.gov) to ensure 
registration information is current and comply with Federal 
requirements. Applicants should refer to 2 CFR 200.113 for more 
information about this requirement.

4. Submission Dates and Times

    Sponsors that wish to be considered for AIP discretionary funding 
throughout FY 2022 should submit applications that meet these NOFO 
requirements as soon as possible to FAA Regional or Airport District 
offices. All applications submitted prior to this NOFO will be 
considered if they meet all existing law, federal regulations, NOFO 
requirements, and FAA policy.
    The FAA will consider applications on a rolling basis, and the 
final deadline to submit discretionary grant applications is Thursday, 
June 30, 2022, 11:59 Eastern time. Dates are subject to possible 
adjustment based on future legislation. Under 49 U.S.C. 47115, the 
Secretary of Transportation, through the FAA, will consider projects 
that are the most appropriate to carry out the statute at any time 
prior to September 30, 2022.
    Information about entitlement funds can be found at 86 FR 72304, 
published on December 21, 2021.

5. Funding Restrictions

    Under 49 U.S.C. 47115 and 47116, projects must meet airport and 
project eligibility and justification criteria. Eligibility is derived 
from statute and may include projects to enhance airport safety, 
capacity, security, and environmental concerns. In general, sponsors 
may receive AIP funds for most airfield capital improvements and in 
specific situations, for terminals, hangars, equipment, and non-
aeronautical development. Projects related to airport operations are 
not eligible for funding. Operational costs--such as salaries, 
equipment, and supplies--are not eligible for AIP grants.
    Furthermore, Chapter 4 of the AIP Handbook describes the funding 
restrictions by airport type (Table 4-4) and project restrictions by 
fund type (Table 4-5). Discretionary funding is broken down into 5 
categories: 1. Environmental Set-Aside, which includes Noise 
Compatibility and Implementation Programs, the VALE Program, and ZEV 
Program; 2. Reliever Set Aside; 3. Military Airport Program (MAP) Set-
Aside; 4. Capacity/Safety/Security/Noise (C/S/S/N); and 5. Pure 
Discretionary. Each of these fund types has certain public use NPIAS 
airport categories that can use this funding, as described in Table 4-4 
of the AIP Handbook, for example, C/S/S/N funding is only available to 
primary and reliever airports. Each of the discretionary fund types 
also has certain project restrictions by fund type, as outlined in 
Table 4-5 of the AIP Handbook, for example, Reliever Set Aside funding 
may not be used for terminal buildings.
    The AIP has funding restrictions by airport and/or project type. 
Please see below criteria and refer to AIP Handbook, Chapter 3 and 4, 
for further details on eligibility criteria and funding restrictions 
available at: https://www.faa.gov/airports/aip/aip_handbook/. The AIP 
Handbook is the published policy for AIP. Except where options are 
specifically noted or where non-mandatory language is used, the 
procedures and requirements are mandatory. The general requirements for 
project funding include considerations of: Project eligibility; project 
justification; good title of airport property; an FAA approved airport 
layout plan; a complete intergovernmental review; airport-user 
consultations; complete required environmental reviews; a determination 
that the grant will yield a usable unit of work; certification that the 
project specification will meet FAA standards; applicable cost 
justifications; and a work plan to complete the project without 
unreasonable delay.

6. Other Submission Requirements

    Contact RO/ADO for the submission process. RO/ADO contact 
information is below. https://www.faa.gov/airports/regions/.

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E. Application Review Information

1. Criteria

    The Secretary of Transportation will evaluate and administer AIP 
applications consistent with the statutory criteria as described in 49 
U.S.C. 47115. Under 49 U.S.C. 47115(d), capacity enhancement projects 
have additional considerations, including a project's impact on 
national transportation system capacity, airport capacity, and global 
air cargo activity. For all projects, 49 U.S.C. 47115(d)(2) states that 
in selecting a project for a grant under that section, the Secretary 
shall consider among other factors whether funding has been provided 
for all other projects qualifying for funding during the fiscal year 
under this chapter that have attained a higher score under the 
numerical priority system employed by the Secretary in administering 
the fund; and the sponsor will be able to commence the work identified 
in the project application in the fiscal year in which the grant is 
made or within 6 months after the grant is made, whichever is later. 
The ACIP emphasizes using AIP funding on the highest priority projects 
as required by statute. The numerical priority system is described in 
section E.2. of this NOFO.
    Annual submission from a sponsor of its 5-year Capital Improvement 
Program (CIP) to the FAA typically initiates the review process. In 
order for the FAA to include a project in the ACIP, the project must be 
eligible and justified.
    Selection criteria include project eligibility, justification, 
readiness, and the availability of funds. For a project to be funded 
through the AIP, certain prerequisites must be completed. These 
prerequisites are: The project is included in the airport's approved 
layout plan, an environmental determination, and all necessary airspace 
studies. Prerequisites must be met in order for grant funding to be 
released.

2. Review and Selection Process

    The FAA's review of submitted projects takes place during the 
formulation of the ACIP. Through the annual ACIP process, the FAA 
systematically identifies, plans, and prioritizes airport planning and 
development projects for AIP funding to produce a three-year funding 
plan. The ACIP is a needs-based and financially-constrained plan for 
funding development over a rolling three-year period. The National 
Priority System (NPS) equation is used to calculate the National 
Priority Rating (NPR), a quantitative measure used for ranking project 
importance. The NPR is calculated using the NPS equation, which 
considers the type of airport, the purpose of the project, the 
component of the project, and the type of action. The resulting score, 
between 1 and 100, is known as the national priority rating (NPR). The 
NPR score prioritizes airport development projects according to FAA 
goals and objectives, with higher numerical scores indicating the 
project is more aligned with FAA goals and objectives. The maximum 
value of the NPS equation is 100. NPIAS-ACIP Order Section 5.7.3 and 
NPIAS-ACIP Order Appendix B provide a detailed explanation of the NPS 
Equation, which is available at https://www.faa.gov/airports/planning_capacity/npias_acip_order/.
    In the administration of the AIP, the FAA gives the highest 
priority to projects that enhance safety and security at airports. 
Other major objectives are achieved by awarding AIP funds to projects 
that maintain existing airport infrastructure and increase or maintain 
the capacity of existing facilities to accommodate increasing passenger 
and cargo demand.
    DCL projects are prioritized based on the NPR. The NPR emphasizes 
using AIP funding on the highest priority projects as required by 
statute. However, the NPR is always the only factor for determining a 
project's priority. For this reason, the ACIP process considers other 
qualitative factors to supplement the NPR score in determining 
priorities. Qualitative factors are assessed through project 
justifications and priority project identification. FAA goals 
considered in project justifications include Safety or Security, System 
Capacity, Environment, and Access. Qualitative factors do not impact 
the NPR for a given project but are taken into account in funding 
decisions.
    This program also supports the President's goals to mobilize 
American ingenuity to build modern infrastructure and an equitable, 
clean energy future while supporting the creation of good jobs. The FAA 
will consider discretionary grants that advance the goals of the 
President's Executive Order 13985, ``Advancing Racial Equity and 
Support for Underserved Communities Through the Federal Government''; 
the President's Executive Order 13988, ``Preventing and Combating 
Discrimination on the Basis of Gender Identity or Sexual Orientation''; 
the President's Executive Order 14008, ``Tackling the Climate Crisis at 
Home and Abroad''; and the President's Executive Order 14025, ``Worker 
Organizing and Empowerment.'' The FAA will consider the extent to which 
the project incorporates considerations of climate change and 
sustainability, to the extent possible within the program. FAA will 
consider the extent to which the project proactively addresses racial 
equity and barriers to opportunity, to the extent possible within the 
program.
    In addition to the Administration's priority of promoting building 
infrastructure with American workers detailed in the President's 
Executive Order 14005, ``Ensuring the Future is Made in all of America 
by All of America's Workers,'' every AIP grant recipient must comply 
with the requirements under the Build America, Buy America Act (Pub. L. 
117-58).
    Also, in addition to this program supporting the President's 
Executive Order 13166, ``Improving Access to Services for Persons with 
Limited English Proficiency,'' all recipients of federal funding are 
subject to Title VI of the Civil Rights Act of 1964, which includes the 
requirement that, in certain circumstances, grant recipients ensure 
that persons with LEP can effectively participate in or benefit from 
federally assisted programs and activities, such as those arising from 
an AIP grant pursuant to this NOFO, and the terms of any AIP grant 
agreement.

3. Integrity and Performance Check

    Prior to making a Federal award with a total amount of Federal 
share greater than the simplified acquisition threshold, the FAA is 
required to review and consider any information about the applicant 
that is in the designated integrity and performance system accessible 
through SAM (currently FAPIIS) (see 41 U.S.C. 2313). An applicant, at 
its option, may review information in the designated integrity and 
performance systems accessible through SAM and comment on any 
information about itself that a Federal awarding agency previously 
entered and is currently in the designated integrity and performance 
system accessible through SAM. The FAA will consider any comments by 
the applicant, in addition to the other information in the designated 
integrity and performance system, in making a judgment about the 
applicant's integrity, business ethics, and record of performance under 
Federal awards when completing the review of risk posed by applicants 
as described in 2 CFR 200.206.

F. Federal Award Administration Information

1. Federal Award Notices

    AIP awards are announced through Congressional notification, and 
the FAA RO/ADO representative will contact the sponsor with further 
information and

[[Page 23695]]

instructions. Once all pre-grant actions are complete, the FAA RO/ADO 
will offer the sponsor a grant for the announced project. This offer 
may be provided through postal mail or by electronic means, and it 
includes an offer letter and a grant agreement. Once the sponsor 
accepts the offer and has fully executed the grant agreement, that 
agreement becomes the legally binding grant award document. Awards made 
under this program are subject to conditions and assurances in the 
grant agreement. In FY 2022, the FAA will announce awards several times 
throughout the fiscal year, but no later than September 30, 2022. These 
announcements can include entitlement and discretionary awards.

2. Administrative Requirements

i. Pre-Award Authority
    Under 49 U.S.C. 47110(b)(2), all project costs must be incurred 
after the grant execution date unless specifically permitted under the 
AIP statutes. Table 3-60 of the AIP Handbook lists the rules regarding 
when project costs can be incurred in relation to the grant execution 
date, the type of funding, and the type of project. Certain airport 
development costs incurred before execution of the grant agreement are 
allowable, but only if certain conditions under 49 U.S.C. 
47110(b)(2)(D) and Table 3-60 of the AIP Handbook are met. 
Specifically, all allowable costs using passenger, cargo, and 
nonprimary entitlement (formula) funding after 9/30/1996 may be 
reimbursed regardless of whether they were incurred before the grant 
was executed as long as all other applicable AIP requirements have been 
met. In addition, allowable costs using any or all the following 
discretionary, state apportionment (including insular) and Alaska 
supplemental funding project costs must have been incurred after the 
grant execution date. The only exceptions are based on statute and are 
relating to the Part 150 Noise Mitigation program, project formulation 
for development and planning projects, land acquisition, letters of 
intent, and design-build projects, Military Airport Program and 
climate-related conditions.
ii. Planning
    The FAA encourages applicants to review and understand the long-
term planning process in the lifecycle of an AIP grant. The planning 
process for a particular project begins several years before a fiscal 
year in which a grant is awarded. FAA Order 5090.5 establishes 
guidelines for the two Federal plans essential to airport development: 
The National Plan of Integrated Airport Systems (NPIAS) and the 
Airports Capital Improvement Plan (ACIP) is available at https://www.faa.gov/airports/planning_capacity/npias_acip_order/.
iii. Grant Requirements
    All grant recipients are subject to the grant requirements of the 
AIP, which includes requirements of 49 U.S.C. Chapter 471. Grant 
recipients are subject to requirements in the FAA's Agreement for AIP 
for financial assistance awards, the annual Certifications and 
Assurances required of applicants, and any additional applicable 
statutory or regulatory requirements, including nondiscrimination 
requirements, 2 CFR part 200, Uniform Administrative Requirements, Cost 
Principles, and Audit Requirements for Federal Awards. Grant 
requirements include, but are not limited to, approved project on an 
airport layout plan, compliance with federal civil rights laws, Buy 
American requirements under 49 U.S.C. 50101, Build America, Buy America 
Act requirements under Public Law 117-58, Transportation Disadvantaged 
Business Enterprise (DBE) program regulations for Airports (49 CFR part 
23 and 49 CFR part 26), and Davis-Bacon Act, as amended (40 U.S.C. 
276a--276a-5).
iv. Standard Assurances
    Applicants must assure that it will comply with all applicable 
Federal statutes, regulations, executive orders, directives, FAA 
circulars, and other Federal administrative requirements in carrying 
out any project supported by the AIP grant. Applicants must acknowledge 
that they are under a continuing obligation to comply with the terms 
and conditions of the grant agreement issued for its project with the 
FAA. Applicants understand that Federal laws, regulations, policies, 
and administrative practices might be modified from time to time and 
may affect the implementation of the project. Applicants must agree 
that the most recent Federal requirements will apply to the project 
unless the FAA issues a written determination otherwise.
    Applicants must submit the Certifications and Assurances before 
receiving a grant, including sponsor grant assurances and 2 CFR part 
200. The Airport Sponsor Assurances are available on the FAA website 
at: https://www.faa.gov/airports/aip/grant_assurances/.

3. Reporting

    The grant recipient is subject to financial reporting per 2 CFR 
200.328 and performance reporting per 2 CFR 200.329. Under the AIP, the 
grant recipient is required to comply with all Federal financial 
reporting requirements and payment requirements, including the 
submittal of timely and accurate reports. Financial and performance 
reporting requirements are available in the FAA October 2020 Financial 
Reporting Policy, which is available at https://www.faa.gov/airports/aip/grant_payments/media/aip-grant-payment-policy.pdf.
    The grant recipient must comply with annual audit reporting 
requirements. The grant recipient and sub-recipients, if applicable, 
must comply with 2 CFR part 200 subpart F Audit reporting requirements. 
The grant recipient must comply with any reporting requirements 
outlined in 2 CFR part 180, OMB Guidelines to Agencies on Government-
wide Debarment and Suspension.

G. Federal Awarding Agency Contact(s)

    Please contact your local Regional Office or District Office. 
Contact information is available at https://www.faa.gov/airports/regions/.

    Issued in Washington, DC, on April 14, 2022.
Robert John Craven,
Director, Office of Airport Planning and Programming.
[FR Doc. 2022-08412 Filed 4-19-22; 8:45 am]
BILLING CODE 4910-13-P


