AIP Handbook: Chapter 2
Chapter 2. Who can get a grant?
2-1. Grant Recipients Are Referred to as Sponsors.
A recipient of an AIP grant is normally called a sponsor.
2-2. Type of Sponsors.
For AIP purposes, sponsors are broken down into the specific types shown in Table 2-1. This table also lists each of the entities that may qualify under each sponsor type.
| For the following type of sponsor… | Only the following entities may qualify… |
|---|---|
| a. Airport sponsors | Public agency owning (or leasing from another government entity) a public-use airport. A state, a political subdivision of a state (such as a city, municipality, or state agency), a tax-supported organization, and an Indian tribe or pueblo are all considered public agencies. Private entity owning a public-use airport. State acting as a sponsor for one or more specific airports in the state. Indian tribe or pueblo owning or leasing a public-use airport. The Secretary of the Interior, during fiscal years 2012-2018 for Midway Island Airport per Section 186(d) of the Vision 100 – Century of Aviation Reauthorization Act (Public Law 108-176) as amended by Section 102 of Division M, Title I of the Consolidated Appropriations Act, 2018 (Public Law 115-141). The Republic of the Marshall Islands, Federated States of Micronesia, and Republic of Palau (or political subdivision) during fiscal years 2012-2018 (per 49 USC § 47115(j)). |
| b. Sponsors that are not currently airport owners (in the planning stages of acquiring or constructing the airport) | Public agency not owning or leasing a public-use airport. |
| c. Sponsors that are not currently airport owners (after the planning is complete and before the airport is open) | Public agency not owning or leasing a public-use airport. |
| d. Planning agency sponsors | Metropolitan planning agency. State planning agency. Council of governments. |
| e.Noise compatibility project sponsors that are not airport owners | Public agency not owning or leasing a public-use airport. |
| f. State block grant sponsor | State approved by the FAA to be in the State Block Grant Program. |
| g. Sponsors for compatible land use planning or compatible land use projects per 49 USC § 47141 | State or local government around a Medium or Large Hub Airports (if the airport has not submitted a Noise Compatibility Program to the FAA or updated the Noise Compatibility Program within the past ten years). |
| h. Sponsors that are acquiring airport development rights from a privately-owned public-use airport under the pilot program in 49 USC § 47138(a) | State or a political subdivision of a state (such as a city, municipality, or state agency) in the same state as the airport. |
| i. Sponsors designated under 49 USC § 47118(h) | Federal agency owning an FAA designated safety critical airport. |
2-3. Type of Projects Each Sponsor Type Can Receive in a Grant.
For each sponsor type, Table 2-2 lists the entities that qualify for that sponsor type and the types of projects they may receive in a grant.
| For the following type of sponsor… | Only the following entities may qualify… | And may only receive grants for the following types of projects… |
|---|---|---|
| a. Airport sponsors | Public agency owning (or leasing from another government entity) a public-use airport. A state, a political subdivision of a state (such as a city, municipality, or state agency), a tax-supported organization, and an Indian tribe or pueblo are all considered public agencies. Private entity owning a public-use airport. State acting as a sponsor for one or more specific airports in the state. Indian tribe or pueblo owning or leasing a public-use airport. The Secretary of the Interior, during fiscal years 2012-2018 for Midway Island Airport per Section 186(d) of the Vision 100 – Century of Aviation Reauthorization Act (Public Law 108176) as amended by Section 102 of Division M, Title I of the Consolidated Appropriations Act, 2018 (Public Law 115-141). The Republic of the Marshall Islands, Federated States of Micronesia, and Republic of Palau (or political subdivision) during fiscal years 2012-2018, per 49 USC § 47115(j). |
Airport master planning Airport development Noise compatibility planning Noise compatibility projects When a state is acting as a sponsor for more than one airport within the state, this is often referred to as a various locations grant. Note: Per Public Law 176-108, the Secretary of the Interior may only receive Airport Development grants for Midway Island. |
| b. Sponsors that are not currently airport owners (in the planning stages acquiring or constructing the airport) | Public agency not owning or leasing a public-use airport. | Planning grants associated with establishing a public use airport |
| c. Sponsors that are not currently airport owners (after the planning is complete and before the airport is open) | Public agency not owning or leasing a public-use airport. | Acquisition of existing airports Acquisition of land in anticipation of constructing a new airport Initial airport development |
| d. Planning agency sponsors | Metropolitan planning agency. State planning agency. Council of governments. |
System planning |
| e.Noise compatibility project sponsors that are not airport owners | Public agency not owning or leasing a public-use airport. | Noise compatibility planning Noise compatibility projects |
| f. State block grant sponsor | State approved by the FAA to be in the State Block Grant Program. | A state block grant for funds to be issued in subgrants to airports in the State Block Grant Program for: Airport master planning Airport development Noise compatibility planning Noise compatibility projects |
| g. Sponsors for compatible land use planning or compatible land use projects per 49 USC § 47141 | State or local government around a Medium or Large Hub Airports (if the airport has not submitted a Noise Compatibility Program to the FAA or updated the Noise Compatibility Program within the past ten years). | Compatible land use planning and compatible land use projects |
| h. Sponsors that are acquiring airport development rights from a privately-owned public-use airport under the pilot program in 49 USC § 47138(a) | State or a political subdivision of a state (such as a city, municipality, or state agency) in the same state as the airport. | Acquisition of airport development rights |
| i. Sponsors designated under 49 USC § 47118(h) | Federal agency owning an FAA designated safety critical airport. | A project to preserve or enhance minimum airfield infrastructure if the project meets all of the following criteria: (1) The project is necessary to meet the minimum safety and emergency operational requirements established under 14 CFR part 139. (2) The project is necessary to support emergency diversionary operations for transoceanic flights in locations that meet the following criteria: (a) Locations within United States jurisdiction or control. (b) Locations where there is a demonstrable lack of diversionary airports within the distance or flight-time required by regulations governing transoceanic flights. |
2-4. Grant Assurances – Definition and Which Ones to Use.
When airport owners or sponsors, planning agencies, or other organizations accept AIP funds, they must agree to certain obligations. These obligations are called grant assurances. The grant assurances require the recipients to maintain and operate their facilities safely and efficiently and in accordance with specified conditions, while some grant assurances state conditions that must occur before a grant is issued, or are specific to implementation of grant projects. These grant assurances are either included in the grant or are specifically incorporated by reference. The assurances are based on the legislation shown in Table 2-3.
| The following statutory reference… | Does the following… |
|---|---|
| 49 USC § 47105 | Gives the requirements for FAA to approve a grant application. |
| 49 USC § 47106 | Permits the FAA to give a grant if the FAA is satisfied that a number of specific project requirements will be met. |
| 49 USC § 47107 | Requires the FAA to obtain written assurances from sponsors concerning current and future airport operations. |
There are three sets of grant assurances (Airport Sponsors, Planning Agency Sponsors, and NonAirport Sponsors Undertaking Noise Compatibility Program Projects) for AIP funded projects that are not issued through the State Block Grant Program. In addition, there are Aviation Block Grant Program Assurances that apply only to State Block Grant Program sponsors (see Paragraph 6-20). For each sponsor type, Table 2-4 lists the entities that qualify for that sponsor type, the types of projects they may receive a grant for, and the set of grant assurances they must follow.
The current versions of the assurances can be obtained from the FAA Office of Airports website (see AIP Grant Assurances link in Appendix B).
| For the following type of sponsor… | Only the following entities may qualify… | And may only receive grants for the following types of projects… | And must follow this set of grant assurances… |
|---|---|---|---|
| a. Airport sponsors | Public agency owning (or leasing from another government entity) a public-use airport. A state; a political subdivision of a state (such as a city, municipality, or state agency); a tax-supported organization: or an Indian tribe or pueblo are all considered public agencies. Private entity owning a public-use airport. State acting as a sponsor for one or more specific airports in the state. Indian tribe or pueblo owning or leasing a publicuse airport. The Secretary of the Interior, during fiscal years 2012-2018 for Midway Island Airport per Section 186(d) of the Vision 100 – Century of Aviation Reauthorization Act (Public Law 108-176) as amended by Section 102 of Division M, Title I of the Consolidated Appropriations Act, 2018 (Public Law 115-141). The Republic of the Marshall Islands, Federated States of Micronesia, and Republic of Palau (or political subdivision) during fiscal years 2012-2018 per 49 USC § 47115(j). |
Airport master planning Airport development Noise compatibility planning Noise compatibility projects Note: When a state is acting as a sponsor for more than one airport within the state, this is often referred to as a various locations grant. |
Airport Sponsors |
| b. Sponsors that are not currently airport owners (in the planning stages of airport acquiring or constructing the airport) | Public agency not owning or leasing a public-use airport. | Planning grants associated with acquiring or establishing a public-use airport | Planning Agency Sponsors |
| c. Sponsors that are not currently airport owners (after the planning is complete and before the airport is open) | Public agency not owning or leasing a public-use airport. | Acquisition of existing airports Acquisition of land in anticipation of constructing a new airport Initial airport development |
Airport Sponsors |
| d. Planning agency sponsors | Metropolitan planning agency. State planning agency. |
System planning | Planning Agency Sponsors |
| e. Noise compatibility project sponsors that are not airport owners | Public agency not owning or leasing a public-use airport. | Noise compatibility planning Noise compatibility projects |
Non-Airport Sponsors Undertaking Noise Compatibility Program Projects |
| f. State Block Grant Program sponsor | State approved by the FAA to be in the State Block Grant Program. | Planning Airport development Noise compatibility planning Noise compatibility projects |
Aviation Block Grant Program See Paragraph 6-20 to see how these relate to subgrant assurance obligations. |
| g. Sponsors for compatible land use planning or compatible land use projects per 49 USC § 47141 | State or local government around a Medium or Large Hub Airports (if the airport has not submitted a Noise Compatibility Program to the FAA or updated the Noise Compatibility Program within the past ten years). |
Compatible land use planning and compatible land use projects | Non-Airport Sponsors Undertaking Noise Compatibility Program Projects |
| h. Sponsors that are acquiring airport development rights from a privately-owned public-use airport under the pilot program in 49 USC § 47138(a) | State or a political subdivision of a state (such as a city, municipality, or state agency) in the same state as the airport. | Acquisition of airport development rights | None (per FAA policy) |
| i. Sponsors designated under 49 USC § 47118(h) | Federal agency owning an FAA designated safety critical airport. | A project to preserve or enhance minimum airfield infrastructure if the project meets all of the following criteria: (1) The project is necessary to meet the minimum safety and emergency operational requirements established under 14 CFR part 139. (2) The project is necessary to support emergency diversionary operations for transoceanic flights in locations that meet the following criteria: (a) Locations within United States jurisdiction or control, or (b) Locations where there is a demonstrable lack of diversionary airports within the distance or flight-time required by regulations governing transoceanic flights. |
None. 49 USC § 47118(h) specifically exempts these sponsors from normal AIP requirements. |
2-5. Grant Assurances – Duration and Applicability.
The duration and applicability for each set of grant assurances (Airport Sponsor, Planning Agency Sponsor, Non-Airport Sponsors Undertaking Noise Compatibility Program Projects, and Aviation Block Grant Program) are listed in Table 2-5, Table 2-6, Table 2-7, and Table 2-8, respectively. Note that the grant assurance numbers are different between these four sets of grant assurances.
| Assurances that… | Include (by assurance # if applicable)… |
|---|---|
| a. Must be met before a grant is offered | #2 Responsibility and Authority of the Sponsor. #3 Sponsor Fund Availability #4 Good Title #6 Consistency with Local Plans #7 Consideration of Local Interest #8 Consultation with Users #9 Public Hearings #12 Terminal Development Prerequisites |
| b. Apply until the grant is closed | #1 General Federal Requirements (except for 49 CFR part 23) #10 Air and Water Quality Standards #14 Minimum Wage Rates #15 Veteran’s Preference #16 Conformity to Plans and Specifications #17 Construction Inspection and Approval #18 Planning Projects #32 Engineering and Design Services #33 Foreign Market Restrictions #34 Policies, Standards, and Specifications #35 Relocation and Real Property Acquisition. |
| c. Apply for three years after the grant is closed | #13 Accounting System, Audit, and Record Keeping Requirements #26 Reports and Inspections |
| d. Apply for the useful life of the project (not to exceed 20 years from the grant acceptance date) except in the case of a land acquisition grant, for which the useful life is indefinite and the assurance obligations do not expire. | #5 Preserving Rights and Powers #11 Pavement Preventive Maintenance (This applies to all of the airfield pavement on the airport, not just the specific pavement in the grant.) #19 Operations and Maintenance #20 Hazard Removal and Mitigation #21 Compatible Land Use #22 Economic Nondiscrimination #24 Fee and Rental Structure #27 Use by Government Aircraft #27 Use by Government Aircraft #28 Land for Federal Facilities #29 Airport Layout Plan #36 Access by Intercity Buses #37 Disadvantaged Business Enterprises (See 49 CFR parts 23 and 26, since certain program requirements may extend the obligation beyond the 20 year period, while the DBE requirements for the project apply until the project is closed.) #38 Hangar Construction #39 Competitive Access |
| e. Last for as long as the airport is owned and operated as an airport | #23 Exclusive Rights #25 Airport Revenue #30 Civil Rights #31 Disposal of Land |
| Assurances that… | Include (by assurance # if applicable)… |
|---|---|
| a. Must be met before a grant is offered | #2 Responsibility and Authority of the Sponsor #3 Sponsor Fund Availability #5 Consistency with Local Plans |
| b. Apply until the grant is closed | #1 General Federal Requirements (except for 49 CFR part 23) #4 Preserving Rights and Powers #7 Planning Projects #9 Civil Rights #10 Engineering and Design Services #11 Foreign Market Restrictions #12 Policies, Standards, and Specifications #13 Disadvantaged Business Enterprises (See 49 CFR parts 23 and 26, since certain program requirements may extend the obligation beyond the 20 year period) |
| c. Apply for three years after the grant is closed | #6 Accounting System, Audit, and Record Keeping Requirements #8 Reports and Inspections The three year duration for record keeping is a requirement of The Single Audit Act of 1984, Public Law 98-502 (as amended in 1996, Public Law 104-156, as amended and recodified at 31 USC § 7501 et seq) and 49 CFR § 18.42 (2 CFR § 200.333-200.337, Record Retention and Access). |
| Assurances that… | Include (by assurance # if applicable)… |
|---|---|
| a. Must be met before a grant is offered | #2 Responsibility and Authority of the Sponsor #3 Sponsor Fund Availability #4 Good Title #6 Consistency with Local Plans #7 Consideration of Local Interest |
| b. Apply until the grant is closed | #1 General Federal Requirements #9 Minimum Wage Rates #10 Veteran’s Preference #11 Conformity to Plans and Specifications #12 Construction Inspection and Approval #18 Engineering and Design Services #19 Foreign Market Restrictions #21 Relocation and Real Property Acquisition |
| c. Apply for three years after the grant is closed | #8 Accounting System, Audit, and Record Keeping Requirements #16 Reports and Inspections |
| d. Apply for the useful life of the project (not to exceed 20 years from the grant issuance date) except in the case of a land acquisition grant, for which the useful life is indefinite and the assurance obligations do not expire. | #5 Preserving Rights and Powers #13 Operations and Maintenance #14 Hazard Prevention #15 Compatible Land Use #22 Disadvantaged Business Enterprises (See 49 CFR parts 23 and 26, since certain program requirements may extend the obligation beyond the 20 year period), while the DBE requirements for the project apply until the project is apply until the project is closed. |
| e. Last for as long as the airport is owned and operated as an airport | #17 Civil Rights #20 Disposal of Land |
| Assurances that… | Include (by assurance # if applicable)… |
|---|---|
| a. Must be met before a grant is offered | #7 State Resources |
| b. Apply until the grant is closed | #1 Incorporated in Grant Agreement #2 General Federal Requirements #6 Environmental Responsibilities |
| c. Apply for three years after the grant is closed | #3 Program Reporting |
| d. Last for as long as the state is in the Block Grant Program | #5 Compliance Requirements |
| e. Meets the duration of the following assurances: Airport Sponsors and Non-Airport Sponsors Undertaking Noise Compatibility Program Projects | #4 Obligated to Standard Assurance |
* Block grant states must ensure that subrecipients are obligated to the applicable grant assurances by attaching the appropriate set(s) of grant assurances to each subgrant. In addition, block grant states that perform actions for the subrecipient that are beyond their block grant state administrative responsibilities must comply with all sponsor assurances associated with those actions.
2-6. Sponsor Qualification Criteria.
For an ADO to issue a grant, the FAA must first determine that the sponsor is able to assume the responsibilities defined in the grant. Details of this requirement are outlined in 49 USC § 47105, § 47106 and § 47107. The general sponsorship criteria are different for public agencies and private entities. The criteria for public agencies are listed in Table 2-9 and for private entities are listed in Table 2-10. Additional criteria, requirements, and considerations that apply to specific sponsorship situations are listed in Table 2-11. These requirements do not apply to Federal agency sponsors of an FAA designated safety critical airport eligible under 49 USC § 47118(h).
| The criteria are… |
|---|
| a. Per 49 USC § 47105(b)(2), a sponsor must be proposing a project for a public-use airport included in the current National Plan of Integrated Airport Systems (NPIAS). |
| b. Per 49 USC § 47106(a)(3), a sponsor must be financially able to assume and carry out the sponsor’s duties in the AIP project application and grant agreements. This includes being able to finance the sponsor share of grants. Per FAA policy, if a public sponsor has an open grant from a Federal agency that requires compliance with 2 CFR part 200 Subpart E (OMB Circulars A-87, Cost Principles for State, Local, and Indian Tribal Governments and OMB Circulars A-102, Grants and Cooperative Agreements with State and Local Governments), this requirement is met. Otherwise, the ADO must work with ACO-100 to make this determination. |
| c. Per 49 USC § 47106(b)(1), the sponsor, another public agency, or the federal government must have good title to the areas of the airport used or intended to be used for the landing, taking off, or surface maneuvering of aircraft. Per FAA policy, if the good title requirement is not met prior to the grant being issued, the acquisition of good title must be in process. Also per FAA policy, the sponsor can meet this good title requirement by leasing from another public agency that holds good title, provided that the duration of the lease is at least as long as the useful life of the project. (A lease from a private entity does not provide good title.). |
| d. Per 49 USC § 47106(a)(5), a sponsor must legally have the authority to act as a sponsor. The sponsor must not be encumbered by any existing agreements that would prevent it from acting as a sponsor. Legal authority to be a public sponsor comes from its state authorizing legislation, also called state enabling legislation. The authorizing legislation must clearly provide the sponsor the authority to carry out the obligations and responsibilities of sponsorship. Per FAA policy, the sponsor must provide a copy of the state authorizing legislation to the ADO prior to the sponsor applying for its first grant. Per FAA policy, the ADO has the option to require an opinion from the sponsor’s attorney regarding whether the sponsor has the legal authority to act as a sponsor. |
| e. Per 49 USC § 47106(d), if a sponsor has previously received a grant, the sponsor must be in compliance with its current grant obligations. The ADO and regional office must obtain a list of the sponsors that are not in compliance from ACO-100. |
| f. Per 49 USC § 47107(d), the sponsor must be able to maintain and operate the airport as a public-use airport to FAA standards. |
| g. Per 2 CFR part 180, OMB Guidelines to Agencies on Governmentwide Debarment and Suspension (Nonprocurement), a sponsor must not be suspended or debarred by the federal government. |
| The criteria are… |
|---|
| a. Per 49 USC § 47105(b)(2), a sponsor must be proposing a project for a public-use airport included in the current National Plan of Integrated Airport Systems (NPIAS). |
| b. Per 49 USC § 47102(26)(B), the sponsor must be the private owner of a public-use airport. 49 USC § 47102(22)(B) defines a privately-owned airport as a public use airport if it is used or intended to be used for public purposes and meets one of the following conditions: (1) Is a reliever airport. The FAA defines which airports are privately-owned reliever airports in the current version of FAA Order 5090.3, Field Formulation of the National Plan of Integrated Airport Systems (NPIAS). (2) The FAA has determined that the airport has at least 2,500 passenger boardings each year and receives scheduled passenger aircraft service. |
| c. Per 49 USC § 47106(b), the sponsor must have good title to the airport property. Per FAA policy, if the good title requirement is not met prior to the grant being issued, the acquisition of good title must be in process. Also per FAA policy, the sponsor can meet this good title requirement by leasing from a public agency that holds good title, provided that the duration of the lease is at least as long as the useful life of the project. |
| d. Per 49 USC § 47107(d), the sponsor must be able to maintain and operate the airport as a public-use airport to FAA standards. |
| e. Per 49 USC § 47106(a)(3), a sponsor must be financially able to assume and carry out the sponsor’s duties in the AIP project application and grant agreements. If a private sponsor can provide documentation that a certified public accounting firm has determined they are financially able to assume and carry out the sponsor duties, this requirement has been met. The certified public accounting firm must have reviewed the sponsor’s financial documentation and affirmed the sponsor has sufficient funds on hand, or a combination of funds and agreements with airport tenants, that will provide adequate income to finance the sponsor share and costs of operating/maintaining the airport for at least 10 years in the future. Otherwise, the ADO must have obtained concurrence from ACO-100 to proceed. |
| f. Per 49 USC § 47106, a sponsor must legally have the authority to act as a sponsor. The sponsor must not be encumbered by any existing agreements that would prevent it from acting as a sponsor. The ADO may require an opinion of the sponsor’s attorney of its legal authority to act as a sponsor and carry out its responsibilities under the grant agreement. |
| g. Per 49 USC § 47106(d), if a sponsor has previously received a grant, the sponsor must be in compliance with its current grant obligations. The ADO and regional office may obtain a list of the sponsors that are not in compliance from ACO-100. |
| h. Per 2 CFR part 180, OMB Guidelines to Agencies on Governmentwide Debarment and Suspension (Nonprocurement), a sponsor must not be suspended or debarred by the federal government. |
| For the following sponsorship situation… | The additional criteria, requirements, and considerations apply… |
|---|---|
| a. A state acting as a sponsor for one or more specific airports (Note: When a state is acting as a sponsor for more than one airport within the state, this is often referred to as a various locations grant.) |
(1) 49 USC § 47105(a)(1)(B) allows state sponsorship of development and planning projects for one or more airports provided: (a) The sponsor of each airport consents in writing to the state sponsorship. (b) There is administrative merit and aeronautical benefit to the state sponsorship. Per FAA policy, the ADO makes this determination. (c)There is written documentation that the state will comply with the required grant conditions and assurances. Per FAA policy, the ADO makes this determination. (2) 49 USC § 47102(27) defines a state as a state of the United States, the District of Columbia, Puerto Rico, the Virgin Islands, American Samoa, Guam, and the Trust Territory of the Pacific Islands (Republic of the Marshall Islands, the Federated States of Micronesia, the Commonwealth of the Northern Mariana Islands, the Republic of Palau). (3) This sponsorship type is not the State Block Grant Program. (4) The state must provide the signed copy of FAA Form 5100-128, Agreement on State Sponsorship and Airport Sponsor Obligations (see the AIP Forms link in Appendix B) to the ADO with the grant application and the ADO must approve or disapprove any changes or addendum to the agreement. |
| b. A state approved by the FAA to be in the block grant program | (1) State block grant sponsorship is restricted to states selected for the State Block Grant Program as discussed in Section 2 of Chapter 6. (2) Under the State Block Grant Program, the state is the sponsor. The state then issues subgrants to the airports that are included in the program. |
| c. A public agency not owning or leasing a public-use airport | (1) During the acquisition or establishment of an airport, the regional division manager must have made two separate sponsor designations. (2) First, the regional division manager may designate a public agency as a sponsor for a planning grant to acquire or establish a public-use airport. (3) Second, if the regional division manager, ADO, and the sponsor decide to continue with the airport acquisition or establishment, the regional division manager must separately designate that the sponsor is legally and financially able to assume the responsibilities of a sponsor. This is because the Planning Agency Grant Assurances are less extensive than the Sponsor Grant Assurances. |
| d. A metropolitan planning agency or a state planning agency | (1) A planning agency sponsor must be authorized by the laws of the state (or states or political subdivisions concerned) to engage in area-wide planning for the areas in which the grant funding is to be used. (2) Typical state agencies that may qualify as a planning agency sponsor are planning offices, aeronautics commissions, and departments of transportation. (3) Typical metropolitan planning agencies include metropolitan planning organizations, councils of government, and regional planning commissions. |
| e. Entities acting as sponsor agents (including channeling act states) | (1) A public agency may act as an agent of the sponsor without being considered a co-sponsor. These agents are not true sponsors or co-sponsors, but they do play a role in the AIP grant process. (2) Channeling is the most common type of agent agreement. State channeling of federal airport grants occurs in various forms within numerous states. Normally, when an airport is in a channeling act state, the sponsor submits payment request information to the state, who then submits the request to the FAA. In this case, the FAA makes payments to the state, and the state then distributes the payment to the sponsor. In some cases the state may also provide technical oversight and review, which may include state submittal of grant applications and/or closeout requests. This is based on state enabling legislation, rather than federal law. In many cases, the state also signs the grant agreements. Channeling agreements based on state enabling legislation do not need approval from the ADO. (3) Except for channeling act agreements, other agent-sponsor agreements require prior ADO review and regional division manager approval in order to be valid. These agreements are rare and must include the terms, conditions, powers, responsibilities, and relationship of the agent to the sponsor. The agreement may be in the form of a resolution or ordinance, and a copy of the agreement, along with regional division manager’s concurrence, must be kept on file in the ADO. |
| f. Two or more entities acting as cosponsors | (1) The FAA has determined that the public agencies either independently (or jointly) meet the sponsorship requirements. The ADO agrees to the co-sponsorship by issuing the grant. (2) Each of the co-sponsors is individually bound to the terms and conditions of the grant agreement unless their respective rights and obligations are otherwise set forth in a written agreement. The agreement must, as a minimum, set forth: (a) The responsibilities of each cosponsor to the other(s) with respect to the accomplishment of the proposed development, operation, and maintenance of the airport; (b) The obligations which each will assume to the United States; (c) The names of the sponsor or sponsors who will accept the grant agreement; and (d) The names of the sponsor or sponsors who will accept receipt of and disburse grant payments. (3) Channeling act states are not considered to be co-sponsors, they are sponsor agents even if they sign the grant agreement. (4) Any two or more public agencies may submit a request to the FAA to co-sponsor a project. The FAA will consider the relationship of the proposed cosponsors to the airport. (5) The FAA is not a party to a co-sponsorship agreement. Therefore, disagreements between co-sponsors must be addressed at a local or state level, as appropriate. |
| g. Sponsors for compatible land use planning or compatible land use projects per 49 USC § 47141 | (1) The sponsor has authority to plan and adopt land use compatibility plans and control measures, including zoning, in the planning area in and around the airport. (2) The sponsor and the airport must enter into a written agreement to prepare the compatible land use plan cooperatively. |
| h. Sponsors that are acquiring airport development rights from a privately-owned public-use airport under the pilot program in 49 USC § 47138(a) | (1) The additional sponsor requirements are contained in Chapter 6, Section 8, which covers the airport development rights pilot program. |
2-7. State Sponsorship Benefits.
One of the benefits of having a state act as a sponsor for more than one airport (like for various location grants) is that it may reduce ADO, state, or sponsor workload by combining multiple grants into one. It may also provide economies of scale through state sponsorship. For instance, equipment can be acquired in quantity at potentially lower unit cost, several small and similar construction projects can be accomplished or related airport master plans or airport layout plans can be prepared. Co-sponsorship of projects between the airport and the state remains an alternative to this procedure if the airport, the state and ADO believe this to be more efficient.
2-8. Sponsorship Determination Process.
The FAA Office of Airports is responsible for making sponsor determinations for AIP. The process differs by entity type as outlined below. For federal agency sponsors of an FAA designated safety critical airport eligible under 49 USC § 47118(h), this determination will be made by APP-1.
a. Public Agencies.
Per the current version of FAA Order 1100.145, Delegations of Authority, Appendix 4, the regional division manager is delegated to take actions with respect to their function and assigned responsibilities, which are detailed in FAA Order 1100.5, FAA Organization – Field. These responsibilities include making sponsorship determinations for public agencies. The regional division manager may document their determination in one of two ways. First, the regional division manager may make a written designation of sponsorship prior to issuing a grant. Second, if there is no controversy or complexity, the regional division manager may make an implicit determination by allowing the ADO to issue a grant to the proposed sponsor. The FAA has determined that it is preferable to have a written determination of sponsorship prior to the regional division manager issuing the first grant to a new sponsor. Therefore, for determinations made by the regional division manager after the publication of this Handbook, the regional division manager must make a written determination prior to issuing the first grant to the new sponsor. The regional division manager and ADO may contact APP-500, ACO-100, or regional legal counsel for assistance with these sponsorship determinations.
b. Private Entities.
APP-1 makes the sponsorship determination for a private entity. APP-1 must have made a written designation of sponsorship prior to the ADO issuing the first grant (an implicit determination is not an option).
c. Public Private Entities.
In addition, a sponsor may also fall in the rare public-private sponsorship category. This is where an airport privatizes some, but not all, of the management of the airport. In this case, the regional division manager and ADO must consult ACO-100 and APP-500 for direction on how to proceed. APP-1 must have made a written designation of sponsorship prior to the ADO issuing the first grant (an implicit determination is not an option).
d. Changes in Sponsorship.
The ADO is not required to make a specific sponsorship determination after a sponsorship determination is made by the FAA Office of Airports. However, if there is a change in sponsorship status, the sponsor must notify the ADO. At that point, the ADO must determine if the current sponsorship determination is valid and if necessary, restart the sponsorship determination process.
2-9. Transfer of Sponsorship.
In order for an existing sponsor to transfer the sponsorship of an obligated airport to another entity, the sponsor must obtain pre-approval from the FAA. Per the current version of FAA Order 5190.6, FAA Airport Compliance Manual, the existing sponsor must first obtain ARP-1 pre-approval to release the entire airport. Then the FAA must make a sponsorship determination for the new entity as discussed in Paragraph 2-8. The existing sponsor cannot transfer sponsorship unless ARP-1 approves the release of the airport and the FAA makes a positive sponsorship determination for the new sponsor. The ADO must refer to the current version of FAA Order 5190.6, FAA Airport Compliance Manual for specific sponsor transfer requirements, including the willingness of the sponsor to take on the applicable grant assurances and obligations.
The ADO and regional office must contact APP-500 and ACO-100 to determine the current process prior to initiating the review of a sponsorship transfer request.
2-10. Conflicting Grant Requests from More than One Entity.
Where more than one entity applies for a grant for the same or similar project, and where identification of the appropriate agency empowered to do the project is not clear, the regional division manager will designate the eligible applicant based on which one is best equipped to do the project. This is a rare situation and is generally related to a planning project. APP-400 can provide assistance to the regional division manager and the ADO in these cases.