Fiscal Year 2023 Competitive Funding Opportunity: Airport Improvement Program Discretionary Grants, 23491-23498 [2023-07984]

Agencies

• Federal Aviation Administration
• DEPARTMENT OF TRANSPORTATION

[Federal Register Volume 88, Number 73 (Monday, April 17, 2023)]
[Notices]
[Pages 23491-23498]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-07984]


-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

[Docket No: FAA-2023-0530]


Fiscal Year 2023 Competitive Funding Opportunity: Airport 
Improvement Program Discretionary Grants

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

ACTION: Notice of funding opportunity.

-----------------------------------------------------------------------

SUMMARY: The U.S. Department of Transportation's Federal Aviation 
Administration (FAA) announces the opportunity to apply for an 
estimated $1.5 billion in fiscal year (FY) 2023 discretionary grants 
under the Airport Improvement Program (AIP). The FAA awards 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

[[Page 23492]]

(NOFO), the FAA identified eligible applicants in its National Plan of 
Integrated Airport Systems (NPIAS) and compiled potentially eligible 
projects 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,'' which 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 
AIP discretionary funding throughout FY 2023 should submit applications 
that meet NOFO requirements as soon as possible, but no later than 
Friday, July 14, 2023, 11:59 p.m. Eastern Daylight Time to FAA Regional 
or Airport District Offices per instructions in this NOFO. The FAA 
considers all applications properly submitted prior to this NOFO. Final 
discretionary grant application funding requests should be based on 
bids or firm costs, not estimates.

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(a)(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(a)(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 is committed to advancing safe, efficient transportation 
through the AIP. The FAA's safety mission is incorporated into many 
aspects of the AIP, 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 number is 20.106. The AIP assists 
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 FAA implements AIP 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, the FAA seeks to fund projects under AIP that reduce greenhouse 
gas emissions in the transportation sector, incorporate evidence-based 
climate resilience measures and features, reduce the lifecycle 
greenhouse gas emissions from the project materials, avoid adverse 
environmental impacts to air or water quality, wetlands, and endangered 
species, and address the disproportionate negative environmental 
impacts of transportation on disadvantaged communities. Also, the FAA 
encourages applicants to consider how a proposed project directly 
benefits 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.
    The FAA seeks to award projects under the AIP that will create 
proportional impacts to all populations in a project area, remove 
transportation-related disparities to all populations in a project 
area, and increase equitable access to project benefits, consistent 
with Executive Order 13985, ``Advancing Racial Equity and Support for 
Underserved Communities Through the Federal Government'' (86 FR 7009).
    The FAA intends to use the AIP to support the creation of good-
paying jobs with the free and fair choice to join a union and the 
incorporation of strong labor standards and training and placement 
programs, especially registered apprenticeships, in project planning 
stages, consistent with Executive Order 14025, ``Worker Organizing and 
Empowerment'' (86 FR 22829), and Executive Order 14052, 
``Implementation of the Infrastructure Investment and Jobs Act'' (86 FR 
64335). The FAA also intends to use the AIP to support wealth creation, 
consistent with the Department of Transportation's Equity Action Plan 
through the inclusion of local inclusive economic development and 
entrepreneurship, such as the utilization of Disadvantaged Business 
Enterprises, Minority-owned Businesses, Women-owned Businesses, or 8(a) 
firms.
    Recipients of Federal transportation funding must comply fully with 
title VI of the Civil Rights Act of 1964 and implementing regulations, 
the Americans with Disabilities Act, section 504 of the Rehabilitation 
Act of 1973, and all other civil rights requirements, as described 
further below. The Department of Transportation's (DOT's) and the FAA's 
Office of Civil Rights may provide resources and technical assistance 
to ensure full and sustainable compliance with Federal civil rights 
requirements.

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.

[[Page 23493]]

    This NOFO is being issued under the Consolidated Appropriations 
Act, 2023 (Pub. L. 117-328). Funding beyond the current available 
program amount is subject to appropriations and the availability of 
future funds.
    In FY 2022, 374 discretionary grants were issued, totaling 
approximately $1.76 billion. The discretionary grants ranged in amount 
from $37,000 to $44,400,000. The average AIP discretionary grant was 
$4,700,000. In FY 2023, the FAA anticipates awarding discretionary 
grants beginning in April 2023, with an individual grant period of 
performance of 4 years. 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 five types of set-aside funding categories, further described 
in section D.5. The process begins with each eligible airport operator 
submitting an 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 fiscal year 
of the 3-year ACIP. The DCL is prioritized based on quantitative and 
qualitative criteria, which are discussed in greater detail in this 
NOFO sections 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; 
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 described 
below.
    All projects funded with AIP must be justified and eligible under 
49 U.S.C. chapters 471 and 475, 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 non-aviation 
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 whether 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. The 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 16 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 AIP 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 the ``Standard 
Operating Procedure for FAA Review and Approval of an Airport 
Improvement Program (AIP) Grant Application.'' https://www.faa.gov/sites/faa.gov/files/airports/resources/sops/arp-sop-600-grant-application.pdf.
    The final grant application funding requests should be based on 
bids or firm costs, not estimates. Grant Funds, Sources and Uses of 
Project Funds--Project budgets should show how different funding 
sources will share in each activity and present those data in dollars 
and percentages. The budget should identify other Federal funds the 
applicant is applying for or has been awarded, if any, that the 
applicant intends to use. Funding sources should be grouped into three 
categories: non-Federal, AIP, and other Federal, with specific amounts 
from each funding source.
    The FAA considers eligible and justified projects per 49 U.S.C. 
47103, 47104, 47106, 47107, 47108, and 47109 that align with Executive 
Orders identified in the NOFO and further the

[[Page 23494]]

Administration's goals of safety, environmental stewardship, climate 
change and sustainability, equity, creation of good jobs and 
infrastructure investment. 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.
    Safety--As stated, safety enhancements and the preservation of a 
safe environment is an element of nearly every AIP project. Applicants 
are encouraged to address how their project provides substantial safety 
benefits. Prior to receiving funds, all projects are expected to, at a 
minimum, identify and mitigate to the extent practicable any 
significant safety risks that could result after the project 
completion.
    Equity--Applicants are encouraged to address how their project will 
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 communities is explained on 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 section 47123 ``Nondiscrimination.'' In 
addition, the 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. Applicants 
are encouraged to address how their project will include an equity 
assessment which evaluates whether a project will create proportional 
impacts and remove transportation-related disparities to all 
populations in a project area. Applicants may demonstrate how 
meaningful public engagement will occur throughout a project's life 
cycle. Applicants may address how project benefits will increase 
affordable transportation options, improve safety, connect Americans to 
good-paying jobs, fight climate change, and/or improve access to 
resources and quality of life.
    Climate Change and Sustainability--Applicants are encouraged to 
address how their project will 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. 
Applicants are encouraged to address how the project will consider 
climate change and environmental justice in the planning stage and in 
project delivery. In particular, applicants may address how the project 
reduces greenhouse gas emissions in the transportation sector, taking 
into account relevant domestic and international standards and 
recommended practices; incorporates evidence-based climate resilience 
measures and features, and reduces the lifecycle greenhouse gas 
emissions from the project materials. Applicants also may address the 
extent to which the project avoids adverse environmental impacts to air 
or water quality, wetlands, and endangered species, as well as address 
disproportionate negative impacts of climate change and pollution on 
disadvantaged communities, including natural disasters, with a focus on 
prevention, response, and recovery.
    Workforce Development, Job Creation and Wealth Creation--Applicants 
are encouraged to address how their project will 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. Applicants are encouraged to address how their 
project will create good-paying jobs with the free and fair choice to 
join a union; promote investments in high-quality workforce development 
programs with supportive services to help train, place, and retain 
people in good-paying jobs or registered apprenticeship, with a focus 
on women, people of color, and others that are underrepresented in 
infrastructure jobs; and change hiring policies and workplace cultures 
to promote the entry and retention of underrepresented populations. 
Applicants may also address how the project promotes local inclusive 
economic development and entrepreneurship, such as the utilization of 
Disadvantaged Business Enterprises, Minority-owned Businesses, Women-
owned Businesses, or 8(a) firms.
    Infrastructure Investment--Capital airport development projects. 
Applicants are encouraged to address how their project will 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.
    Sharing of Application Information--The FAA may share application 
information within the Department of Transportation or with other 
Federal agencies if the FAA determines that sharing is relevant to the 
respective program's objectives.

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 on the SAM website (currently at https://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 (Responsibility/Qualification at https://sam.gov/content/fapiis) to ensure registration information is current and 
complies with Federal requirements. Applicants should refer to 2 CFR 
200.113 for more information about this requirement.

4. Submission Dates and Times

    Sponsors wishing to be considered for AIP discretionary funding 
throughout FY 2023 should submit applications that meet these NOFO 
requirements as soon as possible to FAA Regional or

[[Page 23495]]

Airport District Offices. The FAA considers all applications submitted 
prior to this NOFO if they meet all existing law, Federal regulations, 
NOFO requirements, and FAA policy.
    The FAA considers applications on a rolling basis. The final 
deadline to submit discretionary grant applications is Friday, July 14, 
2023, 11:59 p.m. Eastern Daylight Time. Under 49 U.S.C. 47115, the FAA, 
considers projects that are the most appropriate to carry out the 
statute at any time prior to September 30, 2023.
    Information about entitlement funds can be found at 88 FR 5955, 
published on January 30, 2023.

5. Funding Restriction

    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 five 
categories: 1. Environmental Set Aside, which includes Noise 
Compatibility and Mitigation 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. 
See the criteria below and refer to AIP Handbook, chapters 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 meets 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/
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 non-
primary 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 of the following must have 
been incurred after the grant execution date: discretionary, state 
apportionment (including insular), and Alaska supplemental funding. The 
only exceptions are based on statute, and are: the part 150 Noise 
Mitigation program, project formulation for development and planning 
projects, land acquisition, letters of intent, design-build projects, 
Military Airport Program, and climate-related conditions.

E. Application Review Information

1. Criteria

    The FAA evaluates and administers AIP applications consistent with 
the statutory criteria as described in 49 U.S.C. 47115(d). 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 FAA 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 FAA 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 six 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. The AIP Handbook explains what types of capital 
projects may be eligible and justified for AIP funding depending on the 
airport category, project type, and specific category or categories of 
AIP funding to be requested. Available online at: https://www.faa.gov/airports/aip/aip_handbook/.
    Merit criteria are data-driven criteria as described in section E.2 
and are based on 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 has been made, and all necessary airspace 
studies are complete. Prerequisites must be met in order for grant 
funding to be released.
    While a project is not required to meet the following criteria, the 
FAA gives favorable consideration to applications that have a positive 
benefit on safety; climate change and sustainability; equity; and 
workforce development, job quality, and wealth creation, as described 
in section D.2 above.

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

[[Page 23496]]

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 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 not 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. Long-standing goals 
that the FAA has 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. These qualitative factors include selection 
consideration for applications that have a positive benefit on safety; 
climate change and sustainability; equity; and workforce development, 
job quality, and wealth creation, as described in section D.2 above.
    This program 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 considers 
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 considers the extent to which the 
project incorporates considerations of climate change and 
sustainability, to the extent possible within the program. The FAA 
considers the extent to which the project proactively addresses racial 
equity and barriers to opportunity, to the extent possible within the 
program.

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 (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 considers 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. The 
FAA RO/ADO representative contacts sponsors with further information 
and instructions. Once all pre-grant actions are complete, the FAA RO/
ADO offers 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. The FAA announces awards several times throughout the 
fiscal year, but no later than September 30 of each fiscal year. 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 non-
primary 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 of the following must have 
been incurred after the grant execution date: discretionary, state 
apportionment (including insular), and Alaska supplemental funding. The 
only exceptions are based on statute, and are: the part 150 Noise 
Mitigation program, project formulation for development and planning 
projects, land acquisition, letters of intent, 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), and 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.

[[Page 23497]]

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 parts 23 and 26), and Davis-Bacon Act, as amended (40 
U.S.C. 3141-3144, 3146, and 3147).
iv. Standard Assurances
    Each applicant 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 their 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 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/.
v. Critical Infrastructure Security and Resilience
    It is the policy of the United States to strengthen the security 
and resilience of its critical infrastructure against both physical and 
cyber threats. Each applicant selected for Federal funding under this 
notice must demonstrate, prior to the signing of the grant agreement, 
effort to consider and address physical and cyber security risks 
relevant to the transportation mode and type and scale of the project. 
Projects that have not appropriately considered and addressed physical 
and cyber security and resilience in their planning, design, and 
project oversight, as determined by the Department of Transportation 
and the Department of Homeland Security, will be required to do so 
before receiving funds for construction, consistent with Presidential 
Policy Directive 21--Critical Infrastructure Security and Resilience 
and the National Security Presidential Improving Cybersecurity for 
Critical Infrastructure Control Systems.
vi. Domestic Preference Requirements
    As expressed in Executive Order 14005, ``Ensuring the Future Is 
Made in All of America by All of America's Workers'' (86 FR 7475), the 
executive branch should maximize, consistent with law, the use of 
goods, products, and materials produced in, and services offered in, 
the United States. Funds made available under this notice are subject 
to the domestic preference requirement at Buy American requirements 
under 49 U.S.C. 50101 and Build America, Buy America requirements under 
Public Law 117-58. The FAA expects all applicants to comply with that 
requirement.
vii. Civil Rights and Title VI
    As a condition of a grant award, you shall demonstrate that you 
comply with the provisions of title VI of the Civil Rights Act of 1964 
(42 U.S.C. 2000d to 2000d-4) and implementing regulations (49 CFR part 
21), the Airport and Airway Improvement Act of 1982 (49 U.S.C. 47123), 
the Age Discrimination Act of 1975 (42 U.S.C. 6101 et seq.), section 
504 of the Rehabilitation Act of 1973 (29 U.S.C. 794 et seq.), the 
Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.), U.S. 
Department of Transportation and Federal Aviation Administration (FAA) 
Assurances, and other relevant civil rights Acts, Regulations, and 
Authorities. This may include, as applicable, providing a current Title 
VI Program Plan and a Community Participation Plan (alternatively may 
be called a Public Participation Plan) to the FAA for approval, in the 
format and according to the timeline required by the FAA, and other 
information about the communities that will be benefited and impacted 
by the project. A completed FAA Title VI Pre-Grant Award Checklist is 
also required for every grant application for a large or medium hub 
airport this fiscal year, unless excused by the FAA. You shall 
affirmatively ensure that when carrying out any project supported by 
this grant that you will comply with all federal nondiscrimination and 
equity laws based on race, color, national origin (including persons 
who are limited English proficient), sex (including sexual orientation 
and gender identity), creed, age, disability, genetic information, or 
environmental justice in consideration for federal financial 
assistance. Applicants who have not sufficiently demonstrated the 
conditions of compliance with civil rights requirements will be 
required to do so before receiving funds. The DOT's and FAA's Office of 
Civil Rights may provide resources and technical assistance to 
recipients to ensure full and sustainable compliance with Federal civil 
rights requirements. Failure to comply with civil rights requirements 
will be considered a violation of the agreement or contract and be 
subject to any enforcement action as authorized by law.
viii. Federal Contract Compliance
    As a condition of grant award and consistent with E.O. 11246, Equal 
Employment Opportunity (30 FR 12319, and as amended), all Federally 
assisted contractors are required to make good faith efforts to meet 
the goals of 6.9 percent of construction project hours being performed 
by women, in addition to goals that vary based on geography for 
construction work hours and for work being performed by people of 
color. If applicable, under section 503 of the Rehabilitation Act and 
its implementing regulations, affirmative action obligations for 
certain contractors include an aspirational employment goal of 7 
percent workers with disabilities.
ix. Performance and Program Evaluation
    As a condition of grant award, grant recipients may be required to 
participate in an evaluation undertaken by DOT or another agency or 
partner. The evaluation may take different forms, such as an 
implementation assessment across grant recipients, an impact and/or 
outcomes analysis of all or selected sites within or across grant 
recipients, or a benefit/cost analysis or assessment of return on 
investment. DOT may require applicants to collect data elements to aid 
the evaluation and/or use information available through other 
reporting. As a part of the evaluation, as a condition of award, grant 
recipients must agree to: (1) make records available to the evaluation 
contractor or DOT staff; (2) provide access to program records, and any 
other relevant documents to calculate costs and benefits; (3) in the 
case of an impact analysis, facilitate the access to relevant 
information as requested; and (4) follow

[[Page 23498]]

evaluation procedures as specified by the evaluation contractor or DOT 
staff.
    Recipients and sub-recipients are also encouraged to incorporate 
program evaluation, including associated data collection activities 
from the outset of their program design and implementation, to 
meaningfully document and measure their progress towards meeting an 
agency priority goal(s). Title I of the Foundations for Evidence-Based 
Policymaking Act of 2018 (Evidence Act), Public Law 115-435 (2019) 
urges Federal awarding agencies and Federal assistance recipients and 
sub-recipients to use program evaluation as a critical tool to learn, 
improve equitable delivery, and elevate program service and delivery 
across the program lifecycle. Evaluation means ``an assessment using 
systematic data collection and analysis of one or more programs, 
policies, and organizations intended to assess their effectiveness and 
efficiency.'' 5 U.S.C. 311. Credible program evaluation activities are 
implemented with relevance and utility, rigor, independence and 
objectivity, transparency, and ethics (Office of Management and Budget 
(OMB) Circular A-11, part 6 section 290).
    For grant recipients receiving an award, evaluation costs are 
allowable costs (either as direct or indirect), unless prohibited by 
statute or regulation, and such costs may include the personnel and 
equipment needed for data infrastructure and expertise in data 
analysis, performance, and evaluation. (2 CFR part 200).
    x. 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) as well as Buy American requirements under 49 
U.S.C. 50101 as an integrated process at the direction of the FAA.
    xi. 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 limited English proficiency 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. 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/sites/faa.gov/files/airports/aip/grant_payments/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 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 11, 2023.
Lisa A. Holden,
Acting Deputy Director, Office of Airport Planning and Programming.
[FR Doc. 2023-07984 Filed 4-14-23; 8:45 am]
BILLING CODE 4910-13-P