Dahl/Urgent Message Regarding Use of FY2010 EntitlementsFredLeistiko
From: Maureen.Dahl@faa.gov
Sent: Thursday, January 28, 2010 11:47 AM
Cc: Steve. Engebrecht@faa.gov; Andrew. Galen@faa.gov; Gary.Gates@faa.gov;
Dave.Stelling@faa.gov
Subject: Fw: ACTION: URGENT MESSAGE REGARDING USE OF FY-2010 ENTITLEMENTS
Attachments: 2010-01-27 External Guidance - Options for sponsor use of FY-10 Prgm A entitlements.doc
. 1 �
URGENT MESSAGE TO: MONTANA AIRPORT SPONSORS AND CONSULTANTS REGARDING
USE OF FY-2010 ENTITLEMENTS
On January 25, 2010 the FAA issued a Federal Register Notice announcing February 22, 2010, as the deadline
for each airport sponsor to notify the FAA whether it will use its available fiscal year 2010 nonprimary or
primary entitlement funds. The Airport Improvement Program (AIP) was authorized by Congress from October
1, 2009 through March 31, 2010. The FAA's expenditure authority from the Airport and Airway Trust Fund
will also expire on March 31, 2010.
The FY-2010 AIP program that expires on March 31, 2010 is designated as the Part A program and includes a
portion of the FY-2010 entitlements and a portion of entitlements carried -over from previous fiscal years. If
Congress passes an extension to the AIP beyond March 31, 2010, the program will be designated as the FY-
2010 Part B program and will include the balance of FY-2010 entitlements and carryovers.
Sponsors must notify the Helena ADO in writing by February 22, 2010 of their intention to use or
carryover funds or FAA will be unable to take the necessary actions to designate these as "protected"'
carryover funds. These funds would not be carried over to FY-2011 if legislation is not passed by Congress to
provide an additional AIP authorization (Part B) and an extension of the FAA's spending authority from the
Airport and Airway Trust Fund beyond March 31, 2010.
It should be emphasized that a full -year appropriation of the AIP was passed by Congress, indicating the
intention to continue supporting the AIP Program. While the FAA cannot say with certainty that
Congress will extend the AIP program, it has extended the legislation for the past two years in less
certain circumstances than exist this fiscal year.
To notify the Helena ADO, each sponsor should identify the sponsor and airport name and mark an "X" in one
of the four statements below and e-mail this message to the Helena ADO, or send to the Helena Airports
District Office at: 2725 Skyway Drive, Suite 2, Helena, Montana 59602. Please direct e-mails to:
maureen.dahl@faa.gov; garygates@faa.gov; or steve.engebrecht@faa.gov.
1. The (name of sponsor) understands the risk of not notifying the FAA of its intent to carry over or use
FY-2010 Part A funds by February 22, 2010. The (name of sponsor) intends to combine its FY-2010 Part A
funds with Part B funds for a project at (name of airport) in FY-2010, if AIP is extended beyond March 31,
2010. If the AIP is extended beyond March 31, 2010 and Part B funds are made available, the (name of
sponsor) will declare its intention to use or carryover the available Part A and Part B entitlements by May 1,
2010, or
2. The (name of sponsor) will be submitting a CIP Data Sheet to the Helena ADO to use FY-2010 Part A
funds. (A CIP data sheet should be submitted no later than the first week of February in order to allow
adequate time for programming of the funds. All Part A grant offers must be executed by the Sponsor(s)
and returned to the Helena ADO not later than March 15, 2010.) or
3. The (name of sponsor) will not be using FY-2010 Part A entitlement funds at the (name of airport)
and requests that the funds be carried over to FY-2011, or
4. The (name of sponsor) will not be using FY-2010 Part A entitlement funds, however, plans to transfer
all or part of (name of airport transferring funds) FY-2010 Part A entitlements to (name of airport
receiving funds). Please carry over any used funds to FY-2011.
Additional guidance from our Regional Office regarding funding options under the FY-2010, Part A program is
attached.
Please call the Helena ADO at 406-449-5271 if you have any questions.
Maureen
Mgmt & Program Assistant
FAA HLN ADO
2725 Skyway brive; Ste 2
Helena, MT 59602
(406) 449-5271
ntion/Alternative
1.
Only issue grants where the available FY-10, Program A entitlements meet or exceed project
costs.
The Sponsor has the following options to deal with any remaining FY-10 Program A
entitlement funds:
1. Carry the funds over (by February 22), or
2. Transfer the funds for another airport's use (by March 10)
3. Sit on the funds until Program B
2.
Sponsor holds onto their Program A entitlements and does not issue any grants. When
Program B is passed, the Sponsor would combine with Program B entitlements and issue a
single grant for the full entitlement amount.
3.
Carry over Program A entitlements.* Entitlements would be protected (not lost to Sponsor).
However, Sponsor could not seek discretionary or state apportionment funding under
Program A. The carry over funds will not be available to the Sponsor in FY-2010 under any
subsequent authorization. They will be available in FY-2011.
*Because the carry over entitlements funds are converted to discretionary and reallocated, any Sponsor
choosing this option should be encouraged to declare as early as possible.
4.
Sponsors could establish a transfer program. Sponsor X would give available Program A
entitlements to Sponsor Y. Sponsor Y would issue a single grant for the entire amount.
Under program B, the transaction is reversed and Sponsor X is made whole.
If there is no Program B:
® Sponsor X would not get a grant in FY-10.
® Sponsor Y would make Sponsor X whole with future year entitlements.
5.
Where applicable, issue a grant with available Program A entitlement funds. Under program
B, amend the Program A grant to pull out construction work and make initial grant (using
Program A entitlements) design only. The second grant (which has remaining Program A,
and entire program B funds) would be for construction.
6.
A variation on option #5 is to issue a phase 1 grant with available Program A entitlement
funds, based on estimate (without bid) and no useable unit identified. Under Program B, the
work would be bid and the useable unit for each grant defined.
A Sponsor could not use Program A discretionary funds under this scenario.
7.
Issue a grant with available Program A entitlement funds. Carefully, identify useable unit.
Under Program B, issue a second grant for additional phase of work.
To: External Stakeholders
From: Manager, Planning, Environmental, and Financial Programs Branch
Date January 27, 2010
Subject: Guidance regarding funding options under FY-2010, Program A.
This guidance is being provided to help you, the sponsor, with making the difficult choice of
how to use your FY-2010 entitlements under another split year. Although Congress authorized a
full year appropriation, the authorization, which contains the FAA's authority to award grants,
expires on March 3 Vt. In addition, the authorization permits FAA to only grant up to one half of
the yearly available funds. This means your entitlements will be cut in half during this first half
of the fiscal year, designated as Program A.
We believe the risk of not having a subsequent Program is small. However, we recognize that
some Sponsors may not be willing to take even the slightest risk that any Airport Improvement
Program (AIP) funds could be lost. Even so, we want to encourage you to have a high degree of
confidence that there will be a subsequent Program. Below are two additional issues that should
bolster your confidence that subsequent authority will be forthcoming, and there will be a
Program B.
® There has never been a year (in over 50 years) of aviation grant history that Congress has
failed to pass a full year of funding.
® The bill that has to be changed to extend our authority for the rest of FY-10 is only 2.5
pages long. It should be an easy fix. See the link below for the existing legislation that
expires March 31, 2009: http://frwebgate.access.gpo.gov/cgi-
bin/getdoc.cgi?dbname=111—cong—public—laws&docid=f:pub1116.11 l.pdf
Since we cannot guarantee the passage of subsequent legislation providing FAA with additional
spending authority, we acknowledge there is some risk associated with a Sponsor holding on to
their Program A funds. However, in our professional opinion, based on the facts presented
above, we also acknowledge that the risk is very small.
Regardless of what options a Sponsor decides to undertake, you need to be aware of the
following deadlines (identified in the recent Federal Register notice) for Program A:
® February 22, 2010 — Date to declare carry over of Program A entitlements
® February 26, 2010 — Applications due to FAA (Unless we agree to a slightly later date.
But in no way can that date be later than March 17, 2009)
® March 17, 2010 — All grants must be obligated. This means signed by Sponsor and
returned to FAA, so that information can be put in Delphi.
The following section identifies options for Sponsor use of entitlements under FY-10, Program
A.