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United States Department of Transportation United States Department of Transportation

Q-U47. Can IIJA AIG Allocated funds be used on sponsor-owned revenue producing aeronautical support facilities such as fuel farms and hangars?

Revenue-producing, aeronautical support facilities, are defined under 49 U.S.C. §47102(24) as “fuel farms, hangar buildings, self-service credit card aeronautical fueling systems, airplane wash racks, major rehabilitation of a hangar owned by a sponsor, or other aeronautical support facilities that the Secretary determines will increase the revenue producing ability of the airport.”  These types of projects may be funded under AIG at any airport, regardless of size. The AIP statutory “airside needs” test (49 U.S.C. 47110(h)) is not applicable to IIJA projects.  However, to be IIJA-eligible, a project must be a new installation or major improvement to increase revenue production at the airport. 

    Hangar construction and major rehabilitation are generally eligible under IIJA. An airport sponsor may issue a Request for Proposal (RFP) in a competitive offering for all qualified parties to compete for the right to be an on-airport service provider from a IIJA AIG-funded hangar.  If the sponsor chooses to use an RFP process to select an FBO or other aeronautical service provider, the RFP process must be reasonable and equitable, and the sponsor is encouraged to consider this process each time a new applicant is considered for use of the hangar over the useful life of the facility. However, a sponsor may exclude an incumbent on-airport service provider from responding to a Request for Proposal (RFP) by eliminating the provider from eligibility for the RFP based on the sponsor’s desire to increase competition in airport services, in line with FAA Order 5190.6b. Airport sponsors should remember that leasing arrangements for all hangars must comply with 49 U.S.C. 47107 and the Airport Sponsor Assurances. 

    Because the goal of IIJA is to improve the nation’s infrastructure, maintenance and repair are not eligible. For example, the expansion of a fuel farm to include a new fuel tank, increasing capacity, would be eligible as a new installation. A project to replace old fuel tank supply lines would be considered general maintenance and ineligible. Coordinate with your local ADO/RO for additional guidance.