[Federal Register Volume 67, Number 9 (Monday, January 14, 2002)]
[Notices]
[Pages 1800-1804]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-863]


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

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration


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

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of program guidance for air traffic modernization cost-
sharing pilot program for fiscal years 2002 and 2003.

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

SUMMARY: On December 6, 2000, the FAA issued proposed program guidance 
on Section 304 of the Wendell H. Ford Aviation and Investment Reform 
Act for the 21st Century (AIR-21), which authorizes a pilot program for 
cost-sharing of air traffic modernization projects. The initial program 
was for fiscal years 2001, 2002, and 2003. The FAA is now issuing 
updated program guidance based upon the lessons learned from the first 
year of program implementation and is requesting sponsors' expressions 
of interest for cost-sharing projects for fiscal years 2002 and 2003. 
The purpose of section 304 is to improve aviation safety and enhance 
mobility by encouraging non-Federal investment on a pilot-program basis 
in 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. Each eligible 
project is limited to Federal funding as highlighted in section 2.3.1 
with the Federal cost share not to exceed 33 percent of the project's 
facilities and equipment (excluding operations and maintenance) cost. 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.

DATES: The FAA's Air Traffic System Requirements Service should receive 
initial sponsors' expressions of interest on/or before February 8, 
2002. Failure to meet the proposal submission deadline will not result 
in automatic disqualification, but may cause disapproval due to 
decisions made by the FAA on proposals in hand when Phase 1 
deliberations are made. Potential sponsors are encouraged to submit 
proposals as soon as possible.

ADDRESSES: Sponsors' expressions of interest/proposal should be mailed 
or delivered, in duplicate, to the Federal Aviation Administration, 
Office of Aviation Policy and Plans (Attention: APO-200), 800 
Independence Ave SW., Washington, DC 20590. Electronic submissions will 
be accepted for Phase 1 expression of interest/proposal, but must be 
followed up with a signed paper copy within five working days, to the 
address listed above. The Phase 1 electronic submissions should be 
mailed to [email protected]. Electronic submissions for Phase 2 
formal application will not be accepted. Deliveries may be made between 
8:30 am and 5 pm weekdays, except Federal holidays.
    An electronic copy of this notice may be downloaded using a modem 
and suitable communications software from 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).

FOR FURTHER INFORMATION CONTACT: Debra Griffith or Joann Kansier (202-
385-7600), Research and Requirements Development Directorate (ARQ), 
Federal Aviation Administration, 800 Independence Avenue, SW., 
Washington, DC 20590.

SUPPLEMENTARY INFORMATION:

1. 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 (AIR-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 establish a 
pilot program, to improve aviation safety and enhance mobility in the 
air transportation system by encouraging non-Federal investment in 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.

1.1  Program Participants in Selection Cycle--Round One

    The following airport/Projects were selected to participate in 
round one of the AIR-21 Cost Share Pilot Program:
     Tampa International Airport--upgrade RW18L ILS to Cat II/
III
     Minneapolis-St Paul International Airport--ALSFs on RW12L 
and 12R
     Chicago O'Hare International Airport--develop surface 
movement management system based on multilateration technology
     John F. Kennedy Airport--feasibility study and 
environmental issues analysis for RW22R and La Guardia Airport RW22/RW 
13 ILS upgrades; La Guardia RW31 Glideslope
     Olive Branch Airport, Mississippi--construct Air Traffic 
Control Tower
    The average FAA share for a round one project is $1.5 million. The 
FAA is authorized to approve five more projects under Section 304 of 
AIR-21. Those

[[Page 1801]]

sponsors whose projects were approved in the first round may submit 
additional proposals expanding upon their initial projects. All 
proposals that were not accepted during the FY 01 consideration will be 
reconsidered upon a written request from the sponsor. All sponsors who 
anticipate resubmitting last year's request should review the updated 
criteria in sections 2.1 and 2.2 before submission and modify the 
proposal as appropriate. Sponsors may submit additional proposals if 
they desire or update their original proposal.

2. Final Program Guidance

    This section restates, in part, the statutory language of AIR-21 
Section 304 and outlines FAA's supplementary criteria for the pilot 
program. The sponsor eligibility, project eligibility, and evaluation 
and screening criteria are outlined in Sections 2.1, 2.2 and 2.6 
respectively of this notice.

2.1  Eligible Project Sponsors

2.1.1  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.
2.1.2  Supplementary FAA Criteria for Sponsor Eligibility
    An eligible project sponsor is a public-use airport (or group of 
airports), either publicly or privately owned, action on its own or in 
a joint venture with one or more U.S. air carriers. 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. If selected for the pilot program, the sponsor must be 
willing to enter into a Memorandum of Agreement with the FAA outlining 
the specific goals to be accomplished, the roles and responsibilities 
of each party, schedule milestones, and funding contributions of the 
parties. An eligible sponsor must have an available source of funds to 
execute the pilot program.

2.2  Eligible Projects

2.2.1  Statutory Provisions for Project Eligibility
    The term `eligible project' means a 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 lands 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.
    * Note these projects will be eligible, assuming availability and 
viability of the equipment with the time limitation highlighted in 
2.2.2.b.
2.2.2  Supplementary FAA Criteria for Project Eligibility
    a. The project should be consistent with FAA's air traffic 
equipment/systems infrastructure and architecture and should be a 
validated project of a FAA program. The project, when commissioned, 
should provide measurable benefits that benefit regional or local 
objectives/interests and the FAA NAS.
    b. The project shall 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.).
    c. Equipment and facilities should meet applicable FAA advisory 
circulars and specifications.
    d. The project should serve the general welfare of the flying 
public; it should not be used for the exclusive interest of a for-
profit entity.
    e. Any facility/equipment acquired under the project should be a 
new asset, not an asset that the sponsor has already acquired or 
committed to acquiring.
    f. The project should have a useful and expected life of ten years 
or more, notwithstanding the possible need to replace project 
components during its operating life.
    g. The cost-share program is not the correct forum for requesting 
development of RNAV procedures.
    h. A sponsor may submit a multiple component project (as outlined 
in paragraph 2.5) where each component forms part or all of an 
integrated system. The FAA reserves the option to accept one or 
multiple components of a proposal.
    i. A project may not be co-mingled with other FAA cost-sharing 
programs (e.g., the provisions of AIR-21 Section 131 that authorize 
cost-sharing programs for airport traffic control tower operations and 
construction).
    j. All equipment and structures should meet appropriate OSHA 
standards for employee safety and fire protection. Where land is 
involved, the property should meet all environmental compliance 
requirements, including noise, hazardous material, property access, and 
zoning rights.
    k. A project should not increase the controller or airways facility 
workforces during the pre-transfer period (see section 2.4 below titled 
``Transfer of Facility or Equipment to FAA'').

2.3  Funding

2.3.1  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 Section 48101(a) 
of Title 49, United State Code (FAA's Facilities and Equipment 
appropriation). The Secretary shall use amounts appropriated under 
Section 48101(a) for fiscal years 2001 through 2003 to carry out the 
program.
    The sponsor's non-Federal 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).
2.3.2  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. Equipment in FAA's inventory that has not been 
previously deployed qualifies as eligible equipment. If selected for 
the pilot program, a sponsor may use passenger facility charge (PFC) 
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. Federal contributions 
applied to any other Federal project or grant may not be used to 
satisfy the sponsor's cost share under this pilot program.

[[Page 1802]]

    The following criteria apply to the calculation of the cost-sharing 
ratio:
    a. Project 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 any sponsor-elected project transfer to the FAA, will not be 
considered as part of the cost-share contribution.
    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. 48101(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.
    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.
    The U.S. Department of Transportation and the Comptroller General 
of the United States have the right to obtain and assess all documents 
pertaining to the use of Federal and non-Federal contributions for 
selected projects. Sponsors should maintain sufficient documentation 
during negotiations and during the life of the project to substantiate 
costs.

2.4  Transfer of Facility or Equipment to FAA

2.4.1  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.
2.4.2  Supplementary FAA Criteria for Facility or Equipment Transfer
    Project transfers to the FAA will be at the sponsor's election and 
in accordance with the criteria listed below.
    a. At the time of transfer, the project should be operable and 
maintainable by the FAA and should comply with FAA Order 6700.20, Non-
Federal Navigational Aids and Air Traffic Control Facilities, or any 
successor Order then in effect.
    b. In the event of transfer, software code, data rights, and 
support tools should be provided to the FAA at no cost to the FAA.
    If the project is not transferred to the FAA, the sponsor remains 
liable for all operations and maintenance costs, including the costs of 
capital sustainment.

2.5  Application Procedures

    The following application procedures will be used when applying for 
the cost-share:
    a. Application to the pilot program consists of two phases, as 
described below. The purpose of Phase 1 is to allow the FAA to gauge 
the level of interest, to provide preliminary responses to potential 
sponsors to avoid causing applicant sponsors to expend excessive 
resources on project applications that have very limited changes of 
acceptance because of need or cost, and to plan for subsequent program 
implementation. In Phase 1 the FAA will review the application based 
upon its individual merit.
    b. The purpose of Phase 2 project review is to conduct comparative 
analysis of the individual applications accepted during Phase 1. In 
Phase 2, sponsors will provide more detailed applications, and final 
FAA evaluations/project selections will be completed.
    c. Airport sponsors may submit multiple projects and projects with 
multiple components, but each piece of equipment/activity must be 
identified and costed separately and should be listed in priority 
order. An example of a multiple component project would be an 
instrument landing system (ILS) project that may include in addition to 
the ILS equipment, middle markers and runway lighting for a complete 
package. The FAA reserves the option to accept one or multiple pieces 
of each proposal.
    d. Projects that would be good candidates for this program may 
include equipment and systems that monitor weather, support runway 
incursion reduction, and support regional interest.
    e. Under this pilot program, either the FAA or the sponsor may 
acquire and/or install facilities or equipment. In the case where the 
FAA manages the procurement, existing FAA contracts will be used where 
possible.
    f. Proposals for new air traffic control towers will only be 
considered if they enhance the National Airspace System. Per FAA Order 
6030.1, FAA Policy on Relocation, movement of an existing air traffic 
control tower for the convenience/benefit of only the airport will not 
be considered. Requests for towers will be considered utilizing the 
criteria in Order 7031.2C, Airway Planning Standards Number One (APS-
1).
2.5.1  Phase 1: Sponsor's Submission of Proposal and Initial Project 
Review
    Proposal packages should be no more than 20 pages in length. 
Although not binding the Phase 1 submission should reflect accurate 
estimates of project cost and sponsor contributions. The FAA may verify 
with the sponsor the cost estimate if it does not appear to be 
consistent with the FAA's estimate, and thus provide the sponsor time 
to revalidate its proposal before Phase 2. Sponsors should submit 
written expressions of interest in accordance with the sections 
captioned DATES and ADDRESSES provided earlier in this notice. A 
sponsor's initial proposal 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.

[[Page 1803]]

    b. Description and location of the proposed project.
    c. Statement of need for the project, including an assessment of 
the projected benefits--site-specific, regional, and the national 
airspace systems. Preferred project schedule, including start date, 
completion date, and any significant interim milestone dates.
    d. Statement of intent to transfer the project to the FAA, 
including envisioned date, or intent not to transfer the project to the 
FAA.
    e. 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 (both before 
and after transfer if the sponsor elects to transfer the project to the 
FAA). Cost should be outlined separately for each major activity (e.g., 
each ILS).
    f. Self-assessment of the ability to acquire and commit the non-
Federal share of funding.
    g. Brief description of sponsor's internal approval/coordination 
process for establishing a formal cost-sharing agreement with the FAA 
and the estimated time-frame for completion.
    h. If requesting establishment of an air traffic control tower, 
sponsor must indicate how the facility is to be staffed. Acceptance for 
the Cost Share Pilot Program does not automatically qualify an airport 
for the FAA contract tower program to staff the tower with contract air 
traffic controllers.
    The FAA will review and evaluate the expressions of interest 
submitted during Phase 1, using a panel of technical experts and senior 
managers. The panel will review the submission considering the 
technical feasibility, program feasibility, schedule, projected 
operational benefits, and cost. The FAA will contact 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. Following Phase 
1, the FAA may conduct on-site visits to work with the sponsor in order 
to have a dialogue on the proposal before Phase 2 submission.
2.5.2  Phase 2: Formal Application and Selection of Projects
    Only proposals that have been reviewed in Phase 1 will be 
considered during Phase 2. Phase 2 proposals should not be more than 
twenty pages in length. During Phase 2 each sponsor that has been 
invited to participate should submit an expanded application with the 
following elements 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; (3) a detailed project 
description.
    b. Projected Benefits: 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.
    c. Economic Analysis: Supporting the projected benefits review the 
applicant should conduct an economic analysis. 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 (if the sponsor elects to transfer). The 
level of effort devoted to the analyses should be tailored to the scope 
and cost of the project. For complex programs FAA guidance can be found 
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
    d. Schedule: The Schedule should list all significant proposed 
project dates, including the start date, completion date, date of 
project transfer of the FAA (if applicable), and key interim milestone 
dates.
    e. 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 earlier in this 
notice.
    f. 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.
    g. Letter of Acknowledgment/Support: The application will 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). It is the 
intent of FAA Headquarters for the appropriate projects to include the 
FAA's Regional Office in the project review cycle. It would be in the 
best interest of the applicant to pre-coordinate the projects with the 
appropriate FAA Regional Office.
    The FAA will review and evaluate the Phase 2 applications using a 
panel of technical program experts and senior managers based on the 
criteria outlined below in Section 2.6. 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.
2.5.3  Subsequent Application and Selection Cycles
    If fewer than the statutorily-limited ten projects have been 
approved following the second round of Phase 1 and 2 applications, FAA 
will repeat the Phase 1 and 2 application processes, until the earlier 
of: May 15, 2003, or that point in time when the ten project limit is 
reached (see Schedule Summary in Section 2.7 below). The May 15, 2002, 
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.

[[Page 1804]]

2.6  Application Evaluation and Screening Criteria

    During Phase 1 the FAA will review each of the applications based 
upon the individual merit of the application. The FAA will consider the 
following elements in evaluating Phase 1 applications:
    a. Compliance with statutory criteria, FAA's supplemental criteria, 
and application procedures.
    b. Degree to which the project provides benefits to support the 
FAA's strategic goals for safety, efficiency, and mobility, as well as 
the national airspace system architecture.
    c. Likelihood of project success.
    d. Ability of sponsor to provide its cost share.
    The Phase II review involves a comparative analysis of the 
individual applications to each other. Phase II application evaluation 
will include the following additional elements in evaluating the 
applications.
    a. Benefit to the airport, region, and national airspace system.
    b. Ease of administration (acquisition, installation, etc.).
    c. Evidence that the project can be implemented in accordance with 
the proposed schedule.
    d. Availability of FAA resources.
    e. Degree of Federal leveraging (degree to which the proposal 
minimizes the ratio of Federal costs to total project costs).
    f. Cost to the FAA: (1) up-front cost-share (a sponsor's 
willingness to pay a higher percentage of the project will increase its 
competitiveness when compared to other projects; and, if applicable, 
(2) post-transfer life-cycle operating and maintenance costs.
    g. Equity and diversity with respect to project type, geography, 
and population served.

2.7  Schedule Summary

------------------------------------------------------------------------
                         Milestone                               Date
------------------------------------------------------------------------
Second-Round of Applications
  Phase 1 Applications due to FAA..........................      2/21/02
  FAA Responses to Sponsors' Phase 1 Applications..........      4/22/02
  Phase 2 Applications due to FAA..........................       6/3/02
  FAA Announcement of Second-Round Approvals...............       9/3/02
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
------------------------------------------------------------------------

2.8  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 selection of projects is currently limited by AIR-21 to the end of 
the fiscal year 2003.

3. Impact of Revised Guidelines

    Potential costs and benefits of the final 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 the Secretary of 
Transportation direction on evaluation of international trade impacts, 
and the Unfunded Mandates Reform Act of 1995. The rationale for 
compliance with these guidelines was provided in the Federal Register 
notice dated December 6, 2000 which remains unchanged and can be found 
in that Federal Register or is available from the FAA office listed in 
the ADDRESSES section of this announcement.

4. 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-98-8, 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 6030.1, FAA Policy on Relocation. Available upon request 
from the FAA, telephone 202-646-2310.
    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.

    Issued in Washington, DC, on January 9, 2002.
Joann Kansier,
Program Director for Research and Requirements Development, ARQ-1.
[FR Doc. 02-863 Filed 1-11-02; 8:45 am]
BILLING CODE 4910-13-M