[Federal Register Volume 65, Number 157 (Monday, August 14, 2000)]
[Notices]
[Pages 49625-49630]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-20587]


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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

[Docket No. FAA-2000-7758]


Pilot Program To Permit Cost-Sharing of Air Traffic Modernization 
Projects

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice and request for comments on proposed program guidance; 
request for sponsors' expressions of interest for air traffic 
modernization cost-sharing projects for fiscal years 2001, 2002, and 
2003.

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SUMMARY: This notice provides FAA's proposed program guidance on 
Section 304 of the Wendell H. Ford Aviation and Investment Reform Act 
for the 21st Century (FAIR-21), which authorizes a pilot program for 
cost-sharing of air traffic modernization projects. The purpose of 
Section 304 is to improve aviation safety and enhance mobility by 
encouraging non-Federal investment on a pilot program basis in critical 
air traffic control facilities and equipment. Under the pilot program, 
the Secretary of Transportation may make grants to eligible project 
sponsors for not more than ten eligible projects, with each project 
limited to Federal funding of $15,000,000 and a 33 percent Federal cost 
share. A project sponsor may be a public-use airport (or a group of 
public-use airports), or a joint venture between a public-use airport 
(or a group of public-use airports) and one or more U.S. air carriers. 
In addition to requesting comments on the proposed program guidance, 
this notice requests sponsors' expressions of interest for cost-sharing 
projects for fiscal years 2001, 2002, and 2003.

DATES: Comments on the proposed program guidance should be received at 
the U.S. Department of Transportation Dockets Room on or before 
September 29, 2000. Initial sponsors' expressions of interest should be 
received by the FAA's Air Traffic System Requirements Service on or 
before December 15, 2000.

ADDRESSES: Comments on the proposed program guidance should be mailed 
or delivered, in duplicate, to U.S. Department of Transportation 
Dockets Room, Docket No. FAA-2000-7758, Room Plaza 401, 400 Seventh 
Street, SW., Washington, DC 20590. Comments may also be sent 
electronically to the following internet address: [email protected]. 
Comments may be filed and/or examined in Room Plaza 401 between 10 a.m. 
and 5 p.m. weekdays, except Federal holidays. Sponsors' expressions of 
interest should be mailed or delivered, in duplicate, to the Federal 
Aviation Administration, Air Traffic System Requirements Service (ARS-
1), Room 8206, 400 7th Street, SW., Washington, DC 20590. Electronic 
submissions of expressions of interests will not be accepted. 
Deliveries may be made between 8:30 a.m. and 5 p.m. weekdays, except 
Federal holidays.

FOR FURTHER INFORMATION CONTACT: Ward Keech (202-267-3312) or Charles 
Monico (202-267-9527), Office of Aviation Policy and Plans (APO), 
Federal Aviation Administration, 800 Independence Avenue, SW., 
Washington, DC 20590.

SUPPLEMENTARY INFORMATION:

1. Comments Invited

    Interested parties are invited to submit written comments, data, 
views, or arguments on the proposed program guidance. Comments on 
possible environmental, economic, and federalism- or energy-related 
impacts of this proposal are welcomed. Comments concerning the proposed 
application and selection processes are also welcomed.
    Comments should carry the docket or notice number and should be 
submitted in duplicate to the Rules Docket address specified above. All 
comments received and a report summarizing any substantive public 
contact with FAA personnel on this matter will be filed in the docket. 
The docket is available for inspection both before and after the 
closing date for receiving comments.
    Before taking any final action on this notice, the Administrator 
will consider the comments made on or before the closing date for 
comments, and the proposed guidance may be changed in light of the 
comments received.
    The FAA will acknowledge receipt of comments if the commenter 
includes a self-addressed, stamped postcard with the comments. The 
postcard should be marked ``Comments to Docket No. FAA-2000-7758.'' 
When the FAA receives the comments, the FAA will date, time stamp, and 
return the postcard to the commenter.
    An electronic copy of this document may be downloaded using a modem 
and suitable communications software from

[[Page 49626]]

the FAA regulations section of the FedWorld electronic bulletin board 
service (telephone: 703-321-3339) or the Government Printing Office's 
electronic bulletin board service (telephone: 202-512-1661).

2. Background

    In performing its mission of providing a safe and efficient air 
transportation system, the FAA operates and maintains a complex air 
traffic control system infrastructure. Section 304 of the Wendell H. 
Ford Aviation and Investment Reform Act for the 21st Century (FAIR-21) 
authorizes a pilot program to permit cost-sharing of air traffic 
modernization projects, under which airports and airport/airline joint 
ventures may procure and install facilities and equipment in 
cooperation with the FAA. The purpose of Section 304 is to improve 
aviation safety and enhance mobility of the air transportation system 
by encouraging non-Federal investment on a pilot program basis in 
critical air traffic control facilities and equipment. The pilot 
program is intended to allow project sponsors to achieve accelerated 
deployment of eligible facilities or equipment, and to help expand 
aviation infrastructure.
    This notice responds to congressional direction that the FAA issue 
advisory guidelines on implementation of the pilot program.

3. Proposed Program Guidance

    This section restates the statutory language of FAIR-21 Section 304 
and outlines proposed supplementary threshold criteria that the FAA 
proposes for the pilot program. FAA's proposed evaluation and screening 
criteria are outlined in Section 5 of this notice. Commenters are 
reminded that FAA has no authority to change the statutory provisions.

3.1  Eligible Project Sponsors

3.1.1  Statutory Provisions for Sponsor Eligibility
    The term `project sponsor' means a public-use airport or a joint 
venture between a public-use airport and one or more air carriers.
3.1.2  Supplementary FAA Criteria for Sponsor Eligibility
    An eligible project sponsor is a public-use airport (or group of 
airports), either publicly or privately owned, acting on its own or in 
a joint venture with one or more U.S. air carriers. In the case of a 
joint venture, either the airport(s) or the air carrier(s) may serve as 
the key principal. All landing facilities meeting these criteria are 
eligible, including but not limited to commercial service airports, 
reliever airports, general aviation airports, heliports, etc. All 
eligible sponsors are encouraged to participate.

3.2  Eligible Projects

3.2.1  Statutory Provisions for Project Eligibility
    The term `eligible project' means a critical project relating to 
the Nation's air traffic control system that is certified or approved 
by the Administrator and that promotes safety, efficiency, or mobility. 
Such projects may include:
    a. airport-specific air traffic facilities and equipment, including 
local area augmentation systems, instrument landings systems, weather 
and wind shear detection equipment, lighting improvements, and control 
towers;
    b. automation tools to effect improvements in airport capacity, 
including passive final approach spacing tools and traffic management 
advisory equipment; and
    c. facilities and equipment that enhance airspace control 
procedures, including consolidation of terminal radar control 
facilities and equipment, or assist in en route surveillance, including 
oceanic and offshore flight tracking.
    The statute limits the pilot program to 10 eligible projects.
3.2.2  Supplementary FAA Threshold Criteria for Project Eligibility
    a. The project must be consistent with FAA's air traffic equipment/
systems infrastructure and architecture and must be a validated project 
of an FAA program. The project must be initiated within two years of 
project approval and completed/commissioned within five years of 
project approval (allowing for an environmental impact study (if 
necessary), acquisition, supply support, training programs, etc.).
    b. Equipment and facilities must meet applicable FAA advisory 
circulars and specifications. New or modified computer software is 
eligible if it meets all other criteria. Software source code, data 
rights, and support tools must be provided to the FAA at no additional 
cost to the FAA.
    c. The project must serve the general welfare of the flying public; 
it cannot be used for the exclusive interest of a for-profit entity.
    d. Any facility/equipment acquired under the project must be a new 
asset, not an asset that the sponsor has already acquired or committed 
to acquiring. Either the FAA or the sponsor may perform and manage the 
acquisition. Unless otherwise stipulated in the agreement executed 
between the sponsor and the FAA, liability for cost over-runs will be 
shared between the FAA and the sponsor in accordance with their project 
cost shares (however, the FAA's total cost share is limited by statute 
to $15,000,000 per project). Equipment in FAA's inventory, that has not 
been previously deployed, qualifies as eligible equipment.
    e. Project software must have a useful and expected life of more 
than two years. Project hardware must have a useful and expected life 
of ten years or more.
    f. If a sponsor submits more than one project nomination, each 
project must form part or all of an integrated system.
    g. A project may not be co-mingled with other FAA cost-sharing 
programs (e.g., the provisions of FAIR-21 Section 131 that authorize 
cost-sharing programs for airport traffic control tower operations and 
construction).
    h. All equipment and structures must meet OSHA standards for 
employee safety and fire protection. Where land is involved, the 
property must meet all environmental compliance requirements, including 
noise, hazardous material, property access, and zoning rights.
    i. A project may not create an increase in the controller or 
airways facility workforces during the pre-transfer period.

3.3  Funding

3.3.1  Statutory Provisions for Funding
    The Federal share of the cost of an eligible project carried out 
under the pilot program shall not exceed 33 percent. No project may 
receive more than $15,000,000 in Federal funding under the program. The 
sponsor's share of the cost of an eligible project shall be provided 
from non-Federal sources, including revenues collected pursuant to 
Section 40117 of Title 49, United States Code (passenger facility 
charges).
    The Secretary shall use amounts appropriated under Section 48101(a) 
of Title 49, United States Code (FAA's Facilities and Equipment 
appropriation), for fiscal years 2001 through 2003 to carry out the 
program.
3.3.2  Supplementary FAA Criteria for Funding
    FAA is not obligated to fund one-third of the total project costs; 
rather, FAA's share may not exceed this threshold. The project sponsor 
must provide two-thirds or more of the total project cost. The Federal 
and non-Federal shares of project cost may take the form of in-kind 
contributions. If selected for the pilot program, a sponsor may use PFC

[[Page 49627]]

revenues to acquire and install eligible facilities and equipment, but 
not to fund their operation or maintenance. Normal PFC processing 
procedures under Federal Aviation Regulation 14 CFR Part 158 will be 
used to approve the imposition of a PFC or the use of PFC revenue as 
the non-Federal share of a pilot program project.
    Project funding may be effected through a grant, a cooperative 
agreement, or other applicable instrument. The sponsor's costs share 
may not be met by a non-Federal matching contribution applied to any 
other Federal project or grant, unless specifically authorized by law. 
Either the FAA or the sponsor may use its acquisition authority and 
acquisition vehicles to procure and install facilities and equipment 
under the pilot program. In the case where the FAA manages the 
procurement, existing FAA contracts will be used where possible. FAA 
also may utilize equipment in its inventory that has not been 
previously deployed.
    The following proposed criteria apply to the calculation of the 
cost-sharing ratio:
    a. Project costs are limited to those costs that the FAA would 
normally incur in conventional facilities and equipment funding (e.g., 
if land/right-of-way must be acquired or leased for a project, its cost 
can be included in the cost-sharing ratio only if FAA would otherwise 
incur it in conventional program funding).
    b. Operations and maintenance costs of the project, both before and 
after transfer of the project to the FAA, will not be considered as 
part of the cost-share contributions.
    c. Non-federal funding may include cash, substantial equipment 
contributions that are wholly utilized as an integral part of the 
project, and personnel services dedicated to the proposed project prior 
to commissioning, as long as such personnel are not otherwise supported 
with Federal funds. The non-federal cost may include in-kind 
contributions (e.g., buildings). In-kind contributions will be 
evaluated as to whether they present a cost that FAA would otherwise 
incur in conventional facilities and equipment funding.
    d. Aside from in-kind contributions, only funds expended by the 
sponsor after the project approval date will be eligible for inclusion 
in the cost-sharing ratio.
    e. Unless otherwise specified by these criteria, the principles and 
standards for determining costs should be conducted in accordance with 
OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal 
Governments.
    f. As with other U.S. DOT cost-sharing grants, it is inappropriate 
for a management/administrative fee to be included as part of the 
sponsor's contribution. This does not prohibit appropriate fee payments 
to vendors or others that may provide goods or services to support the 
project.
    By statute, funding to carry out the Federal share of the program 
may be available from amounts authorized to be appropriated under 49 
U.S.C. 4810(a) (FAA's Facilities and Equipment authorization) for 
fiscal years 2001 through 2003. FAA funding decisions will be made in 
concert with the project evaluation and project selection processes 
discussed later in this notice. FAA may choose to use specifically 
appropriated funds, to re-program funds from within existing facilities 
and equipment project appropriations, or to fund from within existing 
budget line items.
    The U.S. Department of Transportation and the comptroller General 
of the United States have the right to access all documents pertaining 
to the use of Federal and non-Federal contributions for selected 
projects. Sponsors must maintain sufficient documentation during 
negotiations and during the life of the project to substantiate costs.

3.4  Transfer of Facility or Equipment to FAA

3.4.1  Statutory Provisions for Facility or Equipment Transfer
    Notwithstanding any other provision of law, project sponsors may 
transfer, without consideration, to the FAA, facilities, equipment, and 
automation tools, the purchase of which was assisted by a grant made 
under this section. The FAA shall accept such facilities, equipment, 
and automation tools, which shall thereafter be operated and maintained 
by the FAA in accordance with criteria of the FAA.
3.4.2  Supplementary FAA Criteria for Facility or Equipment Transfer
    Project transfers to the FAA must comply with FAA Order 6700.20, 
Non-Federal Navigational Aids and Air Traffic Control Facilities. At 
the time of transfer, the project must be operable and maintainable by 
the FAA.

3.5  Application Requirements

    The FAA proposes a two-phased application process because it is 
uncertain about the degree and extent of interest in the program on the 
part of potential sponsors. At one extreme, the program could generate 
intense interest and a large number of immediate applications; at the 
other extreme, the program may serve only limited needs. Given this 
uncertainty, the FAA proposes to first solicit input from potential 
sponsors through initial expressions of interest (Phase 1). The purpose 
of Phase 1 is to allow the FAA to gauge the level of interest, to 
provide preliminary responses to potential sponsors without causing 
applicant sponsors to expend excessive resources on project 
applications that have very limited chances of acceptance because of 
need or cost, and to plan for subsequent program implementation. In 
Phase 2, sponsors would provide more detailed applications, and FAA 
evaluations/project selections would be completed.
3.5.1  Sponsor's Expression of Interest
    A Phase 1 expression of interest should not be submitted by a 
potential sponsor as a placeholder, but rather should reflect 
meaningful interest. The Phase 1 submission is not binding but it 
should reflect accurate estimates of project cost and sponsor 
contributions. Sponsors should submit written expressions of interest 
in accordance with the sections captioned ADDRESSES and DATES in this 
notice. Electronic submissions will not be accepted. A sponsor's 
initial expression of interest should include the following:
    a. Identity of sponsor (including point-of-contact's name, mailing 
address, telephone number, fax number, and e-mail address) and all 
participating authorities or entities in the case of joint ventures.
    b. Description and location of the proposed project.
    c. Statement of need for the project, including a brief assessment 
of the projected benefits--site-specific, regional, and the national 
airspace system.
    d. Preferred project schedule, including start date, completion 
date, and any other significant interim milestones.
    e. Statement of intent or non-intent to transfer project to the 
FAA, including envisioned date.
    f. Schedule of estimated project costs, including: (1) Up-front 
costs divided into proposed shares between the sponsor and the FAA, and 
(2) annual and life-cycle operations and maintenance costs (before and 
after transfer to the FAA).
    g. Self-assessment of the ability to acquire and commit the non-
Federal share of funding.
    The FAA will review and evaluate the expressions of interest 
submitted during Phase 1, using a panel of technical program experts. 
The FAA will contact

[[Page 49628]]

the sponsor if it has questions or has suggestions on how the sponsor 
may improve its proposal. Following its evaluations and preliminary 
selections, the review panel will recommend to the Director of FAA's 
Airway Facilities Service and the Director of FAA's Office of System 
Architecture and Investment Analysis those applicant sponsors who 
should be invited to participate in Phase 2, as described below. These 
officials will notify and invite selected sponsors to participate in 
Phase 2.
3.5.2  Phase 2: Formal Application and Selection of Projects
    During Phase 2 each sponsor that has been invited to participate 
should submit an expanded application with the following elements: 
Project Description, Economic Analysis, Schedule, Financial Plan, 
Letter of Commitment, and a Letter of Acknowledgment/Support from the 
applicable State Department of Transportation and/or other appropriate 
jurisdiction. The following subsections describe the information needed 
by the FAA to evaluate the merits of each application.
    a. Project Description: The project description should contain: (1) 
The identity of the submitting sponsor (including point-of-contact's 
name, mailing address, telephone number, fax number, and e-mail 
address) and all participating authorities or entities in the case of 
joint ventures; (2) project name and location; and (3) a detailed 
project description.
    b. Economic Analysis: All applications should describe the need for 
the project and demonstrate its safety, efficiency, capacity, 
productivity, and other benefits, as applicable, at the airport, 
regional, and system-wide levels. The sponsor may conduct its own 
analysis, may opt to summarize existing analyses from FAA's acquisition 
management system, and/or may use the investment criteria in FAA Order 
7031.2C, Airway Planning Standard Number One. The analysis should 
include a schedule of project costs, including: (1) Up-front costs 
broken down into proposed shares between the sponsor and the FAA; and 
(2) annual and life-cycle operations and maintenance costs before and 
after transfer to the FAA. The level of effort devoted to the analyses 
should be tailored to the scope and cost of the project. The economic 
analyses should be consistent with FAA economic analysis guidance 
contained in Report FAA-APO-98-4, Economic Analysis of Investment and 
Regulatory Programs--Revised Guide, and Report FAA-APO-98-8, Economic 
Values for Evaluation of Federal Aviation Administration Investment and 
Regulatory Programs.
    c. Schedule: The Schedule should list all significant proposed 
project dates, including the start date, completion date, date of 
project transfer to the FAA, and key interim milestone dates.
    d. Financial Plan: The Financial Plan should contain: (1) The 
proposed local and Federal cost shares, (2) evidence of the sponsor's 
ability to provide funds for its cost share (e.g., approved local 
appropriation or Memorandum of Agreement); and (3) any commitment the 
sponsor might choose to offer for the assumption and liability of cost 
overruns aside from the liability criterion provided in section 3.2.2 
of this notice.
    e. Letter of Commitment: Sponsors should demonstrate a commitment 
to the project, as evidenced by a Letter of Commitment signed by all 
project participants (including any participating air carriers). The 
letter should, at a minimum, include a list of the participating 
agencies and organizations in the proposed project; the roles, 
responsibilities and relationship of each participant; and the name, 
address, and telephone number of the individual representing the 
sponsor.
    f. Letter of Acknowledgement/Support: The application should 
include a letter of acknowledgment/support from the applicable State 
Department of Transportation and/or other appropriate jurisdiction (to 
avoid circumventing State and metropolitan planning processes).
    The FAA will review and evaluate the Phase 2 applications using a 
panel of technical program experts, based on the criteria outlined 
below in Section 4. Following its evaluations, the review panel will 
prioritize and recommend to the FAA's Associate Administrator for Air 
Traffic Services and the Associate Administrator for Research and 
Acquisition those applications that it believes should be accepted. If 
the FAA selects a project for inclusion in the pilot program, an 
agreement will be executed between the sponsor and the FAA.
3.5.3  Subsequent Application and Selection Cycles (If Any)
    If fewer than the statutorily-limited ten projects have been 
approved following the initial round of Phase 1 and 2 applications, FAA 
will repeat the Phase 1 and 2 application processes on an annual basis, 
until the earlier of: May 15, 2003, or that point in time when the ten 
project limit is reached (see Schedule Summary in Section 5 below). The 
May 15, 2003, cutoff date is based on an allowance of time for FAA to 
process Phase 2 applications and make selections prior to the statutory 
authorization expiring at the end of fiscal year 2003. FAA cannot and 
does not extend any assurance or implication that any residual 
authority will remain following the first round of Phase 1 and 2 
applications.

4. Application Evaluation and Screening Criteria

    This section explains how FAA proposes to evaluate and screen 
applications. FAA solicits comments on these proposed evaluation and 
screening criteria. In addition, the FAA asks whether additional 
evaluation criteria should be added.
    a. Compliance with statutory criteria, FAA's supplemental criteria, 
and application procedures.
    b. Degree to which the project relates to FAA's strategic goals for 
safety, efficiency and mobility, as well as the national airspace 
system architecture.
    c. Impact on the airport, region, and national airspace system.
    d. Likelihood of project success.
    e. Availability of FAA resources.
    f. Ease of administration (acquisition, installation, etc.).
    g. Ability of sponsor to provide its cost share.
    h. Evidence that the project can be implemented in a timely manner.
    i. Equity and diversity with respect to project type, geography, 
and population served.
    j. Degree of Federal leveraging (degree to which the proposal 
minimizes the ratio of federal costs to total project costs).
    k. Cost to the FAA: (1) up-front cost-share; and (2) post-transfer 
life-cycle operating and maintenance costs.

5.0  Schedule Summary

------------------------------------------------------------------------
                        Milestone                              Date
------------------------------------------------------------------------
Comments due to FAA on Proposed Guidance................       9/29/2000
Final Guidance issued by FAA............................      10/31/2000
First-Round of Applications:
    Phase 1 Applications due to FAA.....................      12/15/2000
    FAA Responses to Sponsors' Phase 1 Applications.....       2/15/2001
    Phase 2 Applications due to FAA.....................       5/15/2001
    FAA Announcement of First-Round Approvals...........       7/13/2001
Second-Round of Applications (if needed):
    Phase 1 Applications due to FAA.....................      12/14/2001
    FAA Responses to Sponsors' Phase 1 Applications.....       2/15/2002

[[Page 49629]]

 
    Phase 2 Applications due to FAA.....................       5/15/2002
    FAA Announcement of Second-Round Approvals..........       7/15/2002
Third-Round of Applications (if needed):
    Phase 1 Applications due to FAA.....................      12/13/2002
    FAA Responses to Sponsors' Phase 1 Applications.....       2/14/2003
    Phase 2 Applications due to FAA.....................       5/15/2003
    FAA Announcement of Third-Round Approvals...........       7/15/2003
------------------------------------------------------------------------

6. Project Implementation Information

    During the life of the project, the FAA may collect data from the 
sponsor and conduct (with non-project funds) independent evaluations of 
the project's impact on safety, efficiency, and mobility objectives. 
This will allow the FAA to ascertain the success of the pilot program. 
The life of the program is currently limited by FAIR-21 to the end of 
fiscal year 2003.

7. Impact of Proposed Guidelines

    Potential costs and benefits of the proposed guidelines have been 
reviewed consistent with the intent of Executive Order 12866 
(Regulatory Planning and Review), the Regulatory Flexibility Act of 
1980, Executive Order 13132 (Federalism), Office of Management and 
Budget direction on evaluation of international trade impacts, and the 
Unfunded Mandates Reform Act of 1995.
    With respect to the focus of Executive Order 12296, there are no 
significant costs imposed by the proposed guidelines. The benefit of 
the proposed guidelines is efficient communication between the FAA and 
potential project sponsors about the basis and timing which the FAA 
will employ in selecting pilot program projects and the type of 
information needed by the FAA to evaluate proposed projects. Potential 
pilot program project sponsors will only apply for consideration if 
they believe that they will benefit from consideration. To minimize the 
costs of application, the guidelines encourage sponsors to provide 
information wherever possible from existing studies, plans, and other 
documents. Further, the proposed guidelines request that initial 
project proposals provide limited detail about the project. Potential 
sponsors will be asked for additional information only if the FAA 
believes that the proposal meets the objective of the pilot program 
based on the limited initial information submission. Facilities and 
equipment currently incorporated in the federal airport and airway 
system architecture and approved for acquisition will be implemented, 
regardless of whether they are selected as a pilot project. Further, in 
implementing the pilot program, the FAA will not alter the sequence of 
implementation of system architecture in a manner that would delay 
achieving overall safety or efficiency benefits. Therefore, the FAA 
believes that the benefits of the proposed guidelines exceed their 
costs.
    Airports that are considered small entities may apply to sponsor or 
participate in pilot projects. Small airports are defined by the Small 
Business Administration as airports owned by local governments for 
areas with populations of 200,000 or less. Program participation is 
voluntary and as explained above, the cost of application is not 
considered significant. Because, by statute, the majority of project 
funding must be provided by the sponsor, few small airports or airlines 
are likely to elect to participate in the pilot program. Therefore, The 
FAA certifies that the proposed guidelines would not have a significant 
economic impact on a substantial number of small entities.
    The FAA has analyzed the proposed guidelines under the principles 
and criteria of Executive Order 13132, Federalism. With few exceptions, 
states do not directly own or operate airports, but public airports are 
frequently owned and operated by either regional transportation 
authorities or local governments. The pilot program authorized by 
Congress which is the subject of these guidelines does not require 
participation by states, regional transportation authorities, or local 
governments, but rather permits the formation of voluntary partnerships 
between the FAA, airports, and airlines on projects considered to be of 
mutual benefit. These projects will ultimately be paid for by air 
passengers and shippers, either through fares or freight tariffs, 
airport charges, or aviation user taxes. FAA facilities and equipment 
are currently financed by passenger and shippers through aviation user 
taxes. Program guidelines described in this notice are intended to 
facilitate communication necessary to implement the pilot projects. By 
entering into these cooperative relationships, the FAA will not 
abrogate its responsibilities for the provision and maintenance of air 
traffic control and airway facilities and equipment, but rather may 
expedite the implementation of such facilities and equipment. In the 
absence of the pilot program, the facilities and equipment would 
ultimately be provided by the federal government and paid for by 
airline passengers and shippers. Once completed, the projects will be 
operated and maintained as a part of the federal airway system. The FAA 
has determined that this action does not have a substantial direct 
effect on the States, on the relationship between the national 
Government and the States, or on the distribution of power and 
responsibilities among the various levels of government. Therefore, the 
FAA has determined that these guidelines do not have federalism 
implications.
    The proposed guidelines would not impose a competitive advantage or 
disadvantage on either U.S. air carriers operating abroad or on foreign 
carriers operating to and from the United States. Further, proposed 
guidelines, per se, would have no effect on the sale of foreign 
aviation products or services in the United States, nor would it have 
any effect on the sales of U.S. aviation products in foreign countries. 
To the extent that pilot program projects improve aviation safety and 
airport and airway system efficiency, both domestic and foreign 
commerce will generally be enhanced.
    The proposed guidelines do not create a federal mandate. Therefore, 
the requirements of Title II of the Unfunded Mandates Reform Act of 
1995 do not apply.

8. References

    The following list outlines references cited above:

    OMB Circular A-87, Cost Principles for State, Local, and Indian 
Tribal Governments, revised August 29, 1997.
    Report FAA-APO-98-4, Economic Analysis of Investment and 
Regulatory Programs--Revised Guide. Available upon request from the 
FAA's Office of Aviation Policy and Plans, telephone 202-267-3308. 
It may also be found on the Internet at: http://api.hq.faa.gov/
apo__pubs.htm.
    Report FAA-APO-88-0, Economic Values for Evaluation of Federal 
Aviation Administration Investment and Regulatory Programs. 
Available upon request from the FAA's Office of Aviation Policy and 
Plans, telephone 202-267-3308. It may also be found on the Internet 
at: http://api.hq.faa.gov/apo__pubs.htm
    FAA Order 7031.2C, Airway Planning Standard Number One, through 
Change 12. Available upon request from the FAA's Office of Aviation 
Policy and Plans, telephone 202-267-3308.
    FAA Order 6700.20, Non-Federal Navigational Aids and Air Traffic 
Control Facilities. Available upon request from the FAA's NAS 
Operations Program Office, telephone 202-267-3034.


[[Page 49630]]


    Issued in Washington, DC, on August 8, 2000.
Nan Shellabarger,
Deputy Director, Aviation Policy and Plans.
[FR Doc. 00-20587 Filed 8-11-00; 8:45 am]
BILLING CODE 4910-13-M