[Federal Register Volume 68, Number 88 (Wednesday, May 7, 2003)]
[Notices]
[Pages 24533-24539]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-11179]


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DEPARTMENT OF TRANSPORTATION

Office of the Secretary


Notice of Order Soliciting Community Proposals

AGENCY: Department of Transportation.

ACTION: Notice of Order Soliciting Community Proposals (Order 2003-4-
22)Docket OST-2003-15065.

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SUMMARY: The Department of Transportation is soliciting proposals from 
communities or consortia of communities interested in receiving a grant 
under the Small Community Air Service Development Pilot Program. The 
full text of the Department's order is attached to this document.

DATES: Grant Proposals should be submitted no later than June 30, 2003.

ADDRESSES: Interested parties should submit an original and four copies 
of their proposals bearing the title ``Proposal under the Small 
Community Air Service Development Pilot Program, Docket OST-2003-
15065,'' as well as the name of the applicant community or consortium 
of communities, and the legal sponsor, to Dockets Operations and Media 
Management, M-30, Room PL-401, Department of Transportation, 400 7th 
Street, SW., Washington, DC 20590.

FOR FURTHER INFORMATION CONTACT: Teresa Bingham, Associate Director, 
Office of Aviation Analysis for the Small Community Air Service 
Development Pilot Program, 400 7th Street SW., Washington, DC 20590, 
(202) 366-1032.

    Dated: April 29, 2003.
Read C. Van de Water,
Assistant Secretary for Aviation and International Affairs.

Small Community Air Service Development Pilot Program Under 49 U.S.C. 
41743 et seq.

[Docket OST-2003-15065]

Summary

    By this order, the Department invites proposals from communities 
and/or consortia of communities interested in obtaining a Federal grant 
under the Small Community Air Service Development Pilot Program (Pilot 
Program) to address air service and air fare problems at their 
communities. Proposals should be submitted no later than June 30, 2003.

Background

    On April 5, 2000, the President signed the Wendell H. Ford Aviation 
Investment and Reform Act for the 21st Century (AIR-21), Public Law 
106-181. Among other things, the statute established a new pilot 
program designed to help smaller communities enhance their air service. 
The statute directs the Secretary of Transportation to assist 
communities in developing projects that will improve their access to 
the National air transportation system through public-private 
partnerships, and to help communities overcome factors that might be 
inhibiting improvements in their current air service.\1\
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    \1\ See Appendix A for the actual text of the authorizing 
statute.
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    Specifically, the law authorizes the Secretary to provide financial 
assistance (direct financial assistance to an air carrier is limited to 
three years) to as many as 40 communities nationwide in each year for 
which program funds are appropriated, though no more than four of those 
may be from the same state.\2\ Communities that are eligible to 
participate in the grant program are those communities that are served 
by an airport that was not larger than a small hub airport for calendar 
year 1997, as defined by 49 U.S.C. 41743(c)(1), and had insufficient 
air service or unreasonably high air fares.\3\ Communities that 
currently do not have air service qualify, but the airport where 
service would be provided must meet the certification requirements of 
the Federal Aviation Administration for commercial airports. While no 
community is required to contribute a portion or share of the cost of 
this program, the law directs the Secretary to give priority to those 
communities where: (a) Average air fares are higher than the air fares 
for all communities; (b) a portion of the cost of the activity 
contemplated by the community is provided from local, non-airport-
revenue sources; (c) a public-private partnership has been or will be 
established to facilitate air carrier service to the public; and, (d) 
improved service will bring the material benefits of scheduled air 
transportation to a

[[Page 24534]]

broad section of the traveling public, including businesses, 
educational institutions, and other enterprises whose access to the 
National air transportation system is limited.
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    \2\ The statute specifies that a consortium of communities 
should be considered as a single entity; therefore, throughout this 
order we use ``community'' to include consortia.
    \3\ A small hub is defined as a community that has at least 
0.05%, but less than 0.25%, of the annual passenger boardings in the 
United States.
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    The statute authorized the Pilot Program for a period of three 
years beginning in fiscal year 2001. No funds were appropriated for the 
first year the program was authorized, but in the Department's FY 2002 
appropriation bill, Public Law 107-87, Congress appropriated $20 
million for the program, to remain available until expended. After 
soliciting proposals from interested communities, in June 2002, the 
Department made grant awards to 40 of the 180 communities that had 
submitted grant proposals. Order 2002-6-14. Those awards were subject 
to the communities completing a formal grant agreement with the 
Department for implementation of their grant projects. Two grant 
recipients did not execute agreements with the Department, and by Order 
2002-12-16, the Department reallocated those grant funds to two other 
communities.\4\
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    \4\ Pasco, Washington, and the consortium of Houghton and 
Pellston, Michigan, declined the grant offers. The funds were 
reallocated to Chico, California, and Telluride, Colorado.
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    On February 20, 2003, as part of the Department's FY 2003 
appropriations bill, Public Law 108-7, Congress appropriated another 
$20 million for the program for FY 2003, also to remain available until 
expended. Given the overall limitation in the AIR-21 legislation 
regarding the total number of communities that could participate in the 
program, it was apparent that the Department could not use the 
appropriation for grants to additional communities without additional 
legislative authorization. On April 16, as a provision of the Emergency 
Wartime Supplemental Appropriations Act, 2003, Public Law 108-11, 
Congress amended the AIR-21 legislation to clarify that the numerical 
community limitations in the law were to be applied on a per year 
basis. Therefore, the Department is now in a position to solicit 
proposals from interested communities.

Community Proposals

    This is the second year that the Department is making grant awards 
under this program. There was an extraordinary response to the Pilot 
Program last year, with 180 applications filed. It is still too soon to 
evaluate the results of the projects authorized under the fiscal year 
2002 grant awards. Nonetheless, we believe that the application process 
worked very well. Therefore, we generally intend to follow the same 
approach as we did last year and to provide communities as much 
flexibility as possible in developing their grant proposals. In this 
regard, there are a number of aspects about this program that we noted 
in last year's request for proposals that are important and we believe 
would be beneficial if they are repeated here.\5\ Also, we clarify some 
issues that arose as communities were developing their proposals last 
year, as well as others based on our experience in reviewing those 
proposals and making the first grant awards.
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    \5\ Order 2002-2-11, February 19, 2002, and published in the 
Federal Register on July 8, 2002; 67 FR 45168.
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Types of Proposals/Application Contents

    The law is very general about how program funding can be used. 
Moreover, we recognize that each community's circumstances may be 
different, and that each community needs some latitude in identifying 
its own objectives and developing strategies for accomplishing them. 
What should remain clear, however, is that program funding is intended 
to improve air service to those communities that are not receiving 
sufficient air service or are experiencing unreasonably high air fares, 
and not to shift existing costs from the local or state level to the 
Federal level.
    There are many ways that a community might enhance its current air 
service or attract new service, such as: By promoting awareness among 
residents of locally available service; by attracting a new carrier 
through revenue guarantees or operating cost offsets; by offering an 
incumbent carrier financial incentives to lower its fares, increase its 
frequencies, add new routes, or deploy more suitable aircraft, 
including upgrading its equipment from turboprops to regional jets; by 
combining traffic support from surrounding communities with 
regionalized service through one airport; or by providing local ground 
transportation service to improve the community's access to air 
service. The core objective of the Pilot Program is to secure 
enhancements that will be responsive to a community's air 
transportation/air fare needs and whose benefits can be expected to 
continue after the initial expenditures.
    Consequently, we encourage communities to consider a wide range of 
initiatives in developing their proposals. At the same time, we will 
not entertain general, vague, or unsupported proposals. The more highly 
defined the proposal, the more likely it will receive favorable 
consideration. At a minimum, we expect proposals to address 
specifically the following:
    [sbull] A description of the community's existing air service, 
including the carrier(s) providing service, service frequency, direct 
and connecting destinations offered, available fares, and equipment 
types.
    [sbull] A synopsis of the community's historical service including 
destinations, traffic levels, service providers, and any extenuating 
factors that might have affected traffic in the past or that can be 
expected to influence service needs in the near to intermediate term.
    [sbull] An analysis of the community's air service needs or 
deficiencies, including a comparison of fares currently offered locally 
with those offered at similar communities in similarly served markets.
    [sbull] A strategic plan for meeting those needs through the Pilot 
Program, including the community's specific project goal and a 
realistic timetable for attaining that goal.\6\ Proposals should 
clearly identify the target audience of each component of the proposed 
transportation initiative, including all advertising and promotional 
efforts. As noted above, we expect that self-sufficiency of the new or 
improved service will be an integral part of the community's goal. 
Applicants should keep in mind that this is the last year that the 
program has been authorized. There is no certainty that the program 
will be reauthorized beyond fiscal year 2003. Therefore, in developing 
projects and project goals, communities should recognize that 
additional funding in subsequent years might not be available. 
Completion of the proposed transportation initiative should not be 
dependent upon receiving grant awards in subsequent years. Moreover, 
many communities may find that a single grant award would be sufficient 
to finance their projects or resolve their service or fare issues. 
However, communities do not need to use the funding within a one-year 
period. Proposed projects may include activities that would extend over 
a multi-year period under the single grant award to the extent 
reasonable and practicable.
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    \6\ The projected timetable will be an integral part of the 
grant agreements between the selected communities and the 
Department. Therefore, there is no advantage to a community in 
proposing an aggressive timetable that cannot be met and there may 
be disadvantages if the community finds that it cannot meet its 
timetable. Rather, communities should carefully consider all factors 
affecting implementation of their projects and develop realistic 
timeframes for achieving those objectives.
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    To the extent that a proposed project is dependent upon or relevant 
to completion of other Federally funded

[[Page 24535]]

capital improvement projects, the community should provide a 
description of, and the construction time-line for, those projects.
    [sbull] A description of the public-private partnership, if there 
is one, or other sponsor, that will be responsible for the program 
developed at the local level. The partnership or other sponsor can 
either be an existing organization or an entirely new one. If the 
sponsor is a public-private partnership, a public member of the 
organization must be identified as the community's sponsor to accept 
program reimbursements. In this regard, communities can designate only 
a single government entity as the legal sponsor, even if a consortium, 
for example, consists of two or more local government entities. Private 
organizations are not permissible sponsors to accept reimbursements 
under this program.\7\
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    \7\ The community has the responsibility to ensure that the 
recipient of any funding has the legal authority under State and 
local laws to carry out all aspects of the grant.
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    [sbull] An analysis of the funding necessary for implementation of 
the community's project, including the Federal and non-Federal 
contributions. In calculating the non-Federal contribution, we will 
give less favorable consideration to contributions that simply continue 
already-existing programs or projects (e.g., designating a portion of 
an airport's existing annual marketing budget); ideally, contributions 
should represent new financial resources devoted to attracting new or 
improved service, or addressing a specific high-fare or other service 
issue. Also, we will not consider in-kind trading (e.g., reduced 
landing fees or terminal rent or non-cash transactions such as free 
advertising in exchange for reduced-fare travel) as part of the 
community's financial contribution to the project. As we have 
previously noted, in-kind trading is frequently hard to quantify and 
does not lend itself to comparison to proposals that include straight 
cash contributions. Of course, communities are free to include in-kind 
trading in their proposals. In fact, we encourage communities to offer 
in-kind inducements as an extra incentive to facilitate air service/
fare improvements. These contributions, however, will be considered 
over and above what the community offers as a cash contribution to the 
proposed project.
    There is no pre-established contribution level that is required of 
the applicant communities. Moreover, the law does not require 
communities to contribute toward a grant project. We emphasize, 
however, that a core objective of the Pilot Program is to promote 
community involvement in addressing air service/air fare issues through 
public/private partnerships. This includes not only participation in 
identifying and implementing the projects geared toward development of 
the community's air service, but, also, a financial commitment to 
achieve those developmental objectives. As a stakeholder in the 
process, the community gains greater control over the type, quality, 
and success of the air service initiatives that will best meet its 
needs, and a greater commitment towards achieving the stated goals. 
Furthermore, while we recognize that some communities may have greater 
financial resources available than others, we still expect there to be 
a direct relationship between the amount of Federal support that a 
community seeks and the amount that it is prepared to contribute toward 
the proposed initiative. The greater the Federal grant amount 
requested, the greater the amount that we would expect as the 
community's contribution.
    Applicant communities should also keep in mind that, as part of the 
partnership between the Department and the community, we expect the 
community to meet its proposed financial contribution to the project. 
We believe that community participation with respect to all aspects, 
including the financial aspects, of the proposal is critical to the 
success of the authorized Pilot Program initiative. As with the fiscal 
year 2002 grant awards, receipt of the full Federal contribution 
awarded will thus be linked to the community's fulfillment of its 
financial contribution.
    [sbull] An explanation of how the community will provide assurances 
that its own funding contribution is spent in the manner proposed.
    [sbull] Descriptions of how the community will monitor the success 
of the program and how the community will identify critical milestones 
during the life of the program, including the need to modify, or 
discontinue funding if identified milestones cannot be met.
    We will not dictate the format that applicants should use in 
submitting their applications, other than the guidance above concerning 
issues that we would like addressed in the community's application. The 
law provides considerable latitude to communities in developing their 
proposals and we do not want to stifle any innovation with a very 
strict format. However, given the high volume of applications received 
last year, and the delay in our ability to begin the grant process for 
this fiscal year, in this order, we are requiring applicants to submit 
Summary Information (attached as Appendix B to this order) at the 
beginning of their applications to assist our review of each proposal.

Use of Funds

    The Pilot Program provides considerable flexibility in how funds 
can be used to implement a community's proposal. For example, grant 
funds can be used to cover the expenses of any new advertising or 
promotional activities that can reasonably be related to improving the 
scheduled air service to the community. Funds may also be used for any 
type of new media advertising or other promotional activities; for new 
studies designed to measure air service deficiencies, or to measure 
traffic loss or diversion to other communities; as well as for the 
employment or use of new, dedicated air service development staff on a 
long-term basis, advertising or public relations agencies, 
universities, and consulting firms. In addition, grant funds may also 
be used for financial incentives, including subsidy or revenue 
guarantees, to air carriers in conjunction with their provision of air 
service or the fare levels charged, or to ground service providers in 
providing access to air transportation services.\8\ Use of the funds 
for air carrier subsidy is limited to a maximum period of three years.
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    \8\ Qualified expenses are set forth in Office of Management and 
Budget Circular A-87. See http://www.whitehouse.gov/omb/circulars/a0087/a0087.html.
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    As noted above, applicants will be expected to meet the financial 
contributions that they proposed toward their service proposals. To the 
extent that applicants may include the use of travel banks or travel 
pledges as financial incentives to service providers (air or surface), 
they should have confirmation and verification of such pledges or 
commitments before they include them in their proposed financial 
contributions.
    While the statute does not preclude communities from including 
capital expenditures, such as terminal/runway improvements or airport 
equipment in their grant requests, we do not encourage communities to 
do so. If our experience this year mirrors that of last year, we will 
have many more proposals for Federal assistance than we can accommodate 
under the limitations of the statute. Moreover, the FAA's Airport 
Improvement Program (AIP) and Facilities and Equipment Program (F&E) 
are specifically intended for such purposes and capital improvement 
requests are more appropriately

[[Page 24536]]

considered under those programs. Therefore, while we will not 
categorically disallow such items, the inclusion of capital 
improvements may put the community at a competitive disadvantage when 
compared to communities that have not included such items in their 
grant requests. Of course, applicants may separately pursue capital 
improvement projects under the AIP and F&E programs in conjunction with 
their grant proposals under the Pilot Program.\9\
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    \9\ Each applicant is responsible for assuring that no part of 
its proposal would, if accepted, violate any of its AIP assurances.
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    The law does not exclude small communities that currently receive 
subsidized air service under the Essential Air Service (EAS) program 
from seeking funds under the Pilot Program. A number of EAS subsidized 
communities applied last year and the Department made grant awards to 
some of those applicants. We intend to again permit subsidized EAS 
communities to seek grant funds under this year's appropriation, and we 
will entertain requests that are directed toward increasing ridership 
on the subsidized service. Any proposal from an EAS community seeking 
funds for service to a point other than its EAS hub will be considered 
very carefully, weighing, and with particular emphasis on, the 
potential negative effect of such a project on the cost to the 
government for the already Federally subsidized service.

Proposal Filing Date

    Proposals are due June 30, 2003. Given the limited time available 
to make these grant awards, proposals filed after that date will not be 
accepted. Interested communities should submit an original and four 
copies of their proposals, including the new Summary Information, 
bearing the title ``Proposal under the Small Community Air Service 
Development Pilot Program'' as well as the name of the community or 
consortium of communities applying, the legal sponsor, and the docket 
number as shown on the first page of this order, to Dockets Operations 
and Media Management, M-30, Room PL-401, Department of Transportation, 
400 7th Street, SW, Washington DC 20590. Questions regarding the 
program or the filing of proposals should be directed to Teresa B. 
Bingham, Associate Director, Office of Aviation Analysis, for the Small 
Community Air Service Development Pilot Program at (202) 366-1032 or 
[email protected].\10\
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    \10\ To the extent that applicants are interested in reviewing 
proposals that were submitted last year, those applications are 
publicly available in Docket OST-2002-11590 through the Department's 
docket management system at the following web address: http://dms.dot.gov/.
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    Applicants will be able to provide certain information relevant to 
their proposals on a confidential basis. Under the Department's 
regulations, such information is limited to commercial or financial 
information whose disclosure would either significantly harm the 
competitive position of a business or enterprise or make it more 
difficult for the Government to obtain similar information in the 
future. Applicants seeking confidential treatment of a portion of their 
applications should segregate the confidential material in a sealed 
envelope marked ``Confidential Submission of X (the applicant) in 
Docket OST-2003-15065'' and include with that material a request in the 
form of a motion seeking confidential treatment of the material under 
14 CFR 302.12 (Rule 12) of the Department's regulations. The applicant 
should submit an original and four copies of this material. The 
confidential material should not be included in the original or in any 
of the copies of the applicant's proposal that are submitted to the 
Department, although those submissions should indicate clearly where 
the confidential material would have been inserted. Under our practice, 
if you invoke Rule 12, the confidential portion of your filing will be 
treated as confidential unless and until we decide otherwise. All 
confidential material must also be received by June 30, 2003.
    We recognize that a number of communities that filed applications 
last year were not awarded grants. Some of these communities may still 
be interested in pursuing the proposals that they submitted last year 
with or without any modifications. Others may want to change their 
proposals, but make no changes to the historical or other information 
that was provided in their fiscal year 2002 proposals. Communities that 
are interested in doing so may adopt their 2002 applications by 
reference to the extent that the information in that application 
remains relevant. They should submit in this docket, by the due date, 
however, any necessary amendments and/or updates to their previous 
applications and include the additional information that is required in 
this order, including the Summary Information.
    We anticipate that some communities that were awarded grants last 
year may also want to seek additional funds to expand projects 
authorized last year or for entirely new projects. Those communities 
are free to submit grant proposals under this year's appropriation. 
However, the funds for this program are very limited and the interest 
in the program has far exceeded both the funds available and the number 
of communities that can participate under the statute. The fact that 
the community has already received one grant under the Pilot Program 
would be considered carefully in comparing a new proposal with those of 
other applicant communities.

Air Service Development Zone

    The statute provides that the Department will designate one of the 
communities awarded a grant as an Air Service Development Zone and work 
closely with the designated community or consortium on means to attract 
business to the areas surrounding the airport and to develop land use 
options for the area. In this regard, the Department will also 
coordinate with the Department of Commerce to provide data to the 
community/consortium relevant to this objective. There are no 
additional funds associated with this designation, and no special 
benefit or preference will be given to communities seeking this 
designation in receiving a grant under the Pilot Program. Rather, the 
Department will serve as a liaison between the community and other 
government agencies with respect to the community's development plans.
    Communities that are interested in this designation should clearly 
indicate that interest in their applications separately from their 
grant proposals and should provide information in support of their 
selection for this designation. They should also clearly indicate this 
interest in the appropriate place in the Summary Information.

Department Review and Grant Awards

    The Department will carefully review each proposal and the staff 
may contact applicants and discuss their proposals with them if 
clarifications or more information is needed. Communities may amend 
their proposals at any time prior to the Department's selection of 
grant recipients and we will consider those amendments to the extent 
the review process permits. It is our intent to make the grant awards 
as quickly as possible so that communities awarded grants can complete 
the grant agreement process and proceed to implement their plans.
    Given our experience of last year, it is likely that we will 
receive more applications than we will be able to fund under the 
limitations of the Pilot Program. We, therefore, expect to have to make 
many very difficult decisions. With this in mind, in making our

[[Page 24537]]

selections we will take into consideration the relative size of each 
applicant community; the geographic location of each applicant, 
including the community's proximity to larger centers of air service 
and low-fare service alternatives; the number of passengers expected to 
benefit from the proposed transportation initiative; the grant amount 
requested compared with total funds available for all communities; the 
proposed Federal grant amount compared with the local share offered; 
the uniqueness of applicants' claimed problem(s); the uniqueness of the 
applicant's proposed solution(s) to solving the problem(s); and the 
relative ability of the applicant to implement its proposed project and 
resolve or address the claimed problem(s). Finally, as stated above, we 
will consider whether the applicant community received a grant award 
under last year's appropriation.
    An important overreaching objective of the Pilot Program is to find 
solutions to transportation problems of small communities that could 
serve as models for other small communities to improve their access to 
air service and to the Nation's air transportation system. To this end, 
we hope to approve, as we did last year, a variety of different and 
innovative proposals at many communities experiencing different types 
of transportation issues, challenges, and opportunities.
    Given the highly competitive nature of the grant process, the 
Department does not intend to meet with grant applicants with respect 
to their grant proposals, a process that is sometimes used in other 
grant programs. The Department's selection of communities for grant 
awards will be based on the community's written submissions to the 
Department.
    Communities awarded grants will be expected to execute a grant 
agreement with the Department before they begin to spend funds under 
the grant award. We also remind communities that the grant funds will 
be provided on a reimbursable basis only and only for expenses incurred 
and billed during the period that the grant agreement is in effect. 
Applicants therefore should not assume they have received a grant, nor 
obligate or spend local funds prior to receiving and fully executing a 
grant agreement under this program. Expenditures made prior to the 
execution of a grant agreement cannot and will not be reimbursed for 
any reason. We also remind communities that numerous assurances are 
required to be made and honored when Federal funds are awarded (such 
as, non-discrimination, etc.); acceptance of the responsibilities of 
these assurances is a requirement for receiving a grant under the Pilot 
Program.
    This order is issued under authority delegated in 49 CFR 1.56a(f).
    Accordingly,
    1. Community proposals for funding under the Small Community Air 
Service Development Pilot Program should be submitted no later than 
June 30, 2003;\11\ and
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    \11\ Proposals must be postmarked no later than June 30. The 
original application should be submitted on 8.5'' x 11'' paper, in 
dark ink (not green) and without tabs to facilitate inclusion in the 
Department's docket management system. The remaining copies may be 
tabbed and include use of any color ink.
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    2. This order will be published in the Federal Register and also 
will be served on the Council of Mayors, the National League of Cities, 
the National Governors Association, the National Association of State 
Aviation Officials, the Association of County Executives, the American 
Association of Airport Executives (AAAE), and the Airports Council 
International-North America (ACI).

Read C. Van de Water,
Assistant Secretary for Aviation and International Affairs.
    An electronic version of this document is available on the World 
Wide Web at http://dms.dot.gov

Appendix A

Sec. 203. Improved Air Carrier Service to Airports Not Receiving 
Sufficient Service

    (a) In General--Subchapter II of chapter 417 is amended by 
adding at the end the following:
    Sec. 41743. Airports not receiving sufficient service
    (a) Small Community Air Service Development Pilot Program--The 
Secretary of Transportation shall establish a pilot program that 
meets the requirements of this section for improving air carrier 
service to airports not receiving sufficient air carrier service.
    (b) Application Required--In order to participate in the program 
established under subsection (a), a community or consortium of 
communities shall submit an application to the Secretary in such 
form, at such time, and containing such information as the Secretary 
may require, including--
    (1) an assessment of the need of the community or consortium for 
access, or improved access, to the national air transportation 
system; and
    (2) an analysis of the application of the criteria in subsection 
(c) to that community or consortium.
    (c) Criteria for Participation--In selecting communities, or 
consortia of communities, for participation in the program 
established under subsection (a), the Secretary shall apply the 
following criteria:
    (1) Size--For calendar year 1997, the airport serving the 
community or consortium was not larger than a small hub airport (as 
that term is defined in section 41731(a)(5)), and--
    (A) had insufficient air carrier service; or
    (B) had unreasonably high air fares.
    (2) Characteristics--The airport presents characteristics, such 
as geographic diversity or unique circumstances, that will 
demonstrate the need for, and feasibility of, the program 
established under subsection (a).
    (3) State Limit--No more than four communities or consortia of 
communities, or a combination thereof, may be located in the same 
State.
    (4) Overall Limit--No more than 40 communities or consortia of 
communities, or a combination thereof, may be selected to 
participate in the program [in each year for which funds are 
appropriated for the program]. Note: Bracketed language was added by 
the Emergency Wartime Supplemental Appropriations Act, 2003, Pub. L. 
108-11.
    (5) Priorities--The Secretary shall give priority to communities 
or consortia of communities where--
    (A) air fares are higher than the average air fares for all 
communities;
    (B) the community or consortium will provide a portion of the 
cost of the activity to be assisted under the program from local 
sources other than airport revenues;
    (C) the community or consortium has established, or will 
establish, a public-private partnership to facilitate air carrier 
service to the public; and
    (D) the assistance will provide material benefits to a broad 
segment of the traveling public, including business, educational 
institutions, and other enterprises, whose access to the national 
air transportation system is limited.
    (d) Types of Assistance--The Secretary may use amounts made 
available under this section--
    (1) to provide assistance to an air carrier to subsidize service 
to and from an underserved airport for a period not to exceed 3 
years;
    (2) to provide assistance to an underserved airport to obtain 
service to and from the underserved airport; and
    (3) to provide assistance to an underserved airport to implement 
such other measures as the Secretary, in consultation with such 
airport, considers appropriate to improve air service both in terms 
of the cost of such service to consumers and the availability of 
such service, including improving air service through marketing and 
promotion of air service and enhanced utilization of airport 
facilities.
    (e) Authority to Make Agreements--
    (1) In General--The Secretary may make agreements to provide 
assistance under this section.
    (2) Authorization of Appropriations--There is authorized to be 
appropriated to the Secretary $20,000,000 for fiscal year 2001 and 
$27,500,000 for each of fiscal years 2002 and 2003 to carry out this 
section. Such sums shall remain available until expended.
    (f) Additional Action--Under the pilot program established under 
subsection (a), the Secretary shall work with air carriers providing 
service to participating communities and major air carriers (as 
defined in section 41716(a)(2)) serving large

[[Page 24538]]

hub airports (as defined in section 41731(a)(3)) to facilitate 
joint-fare arrangements consistent with normal industry practice.
    (g) Designation of Responsible Official--The Secretary shall 
designate an employee of the Department of Transportation--
    (1) to function as a facilitator between small communities and 
air carriers;
    (2) to carry out this section;
    (3) to ensure that the Bureau of Transportation Statistics 
collects data on passenger information to assess the service needs 
of small communities;
    (4) to work with and coordinate efforts with other Federal, 
State, and local agencies to increase the viability of service to 
small communities and the creation of aviation development zones; 
and
    (5) to provide policy recommendations to the Secretary and 
Congress that will ensure that small communities have access to 
quality, affordable air transportation services.
    (h) Air Service Development Zone--The Secretary shall designate 
an airport in the program as an Air Service Development Zone and 
work with the community or consortium on means to attract business 
to the area surrounding the airport, to develop land use options for 
the area, and provide data, working with the Department of Commerce 
and other agencies.
    (b) Conforming Amendment--The analysis for subchapter II of 
chapter 417 is amended by adding at the end the following:
    41743. Airports not receiving sufficient service.

Appendix B

Small Community Air Service Development Pilot Program

Summary Information

    All applicants must submit this information along with their 
proposal. Previous applicants may incorporate by reference all or 
any portion of their initial proposals in Docket OST-2002-11590, but 
must also submit this summary information to be considered for a 
grant award from the FY 2003 funding for the Pilot Program in this 
docket.

A. Applicant Information: (Check All That Apply)

[ballot] Consortium
[ballot] Community now receives EAS subsidy

Point of Contact:

 Community Name--------------------------------------------------------

 Address 1-------------------------------------------------------------

 Address 2-------------------------------------------------------------

 City, State Zipcode---------------------------------------------------

 Phone:----------------------------------------------------------------

 Fax:------------------------------------------------------------------

 Email:----------------------------------------------------------------

 County:---------------------------------------------------------------

 Point of Contact:-----------------------------------------------------

 Community Name--------------------------------------------------------

 Address 1-------------------------------------------------------------

 Address 2-------------------------------------------------------------

 City, State Zipcode---------------------------------------------------

 Phone:----------------------------------------------------------------

 Fax:------------------------------------------------------------------

 Email:----------------------------------------------------------------

 County:---------------------------------------------------------------

 Point of Contact:-----------------------------------------------------

 Community Name--------------------------------------------------------

 Address 1-------------------------------------------------------------

 Address 2-------------------------------------------------------------

 City, State Zipcode---------------------------------------------------

 Phone:----------------------------------------------------------------

 Fax:------------------------------------------------------------------

 Email:----------------------------------------------------------------

 County:---------------------------------------------------------------

 Point of Contact:-----------------------------------------------------

Designated Legal Sponsor: (Must be a Government Entity)

Point of Contact:

 Name------------------------------------------------------------------

 Title-----------------------------------------------------------------

 Organization----------------------------------------------------------

 Address 1-------------------------------------------------------------

 Address 2-------------------------------------------------------------

 City, State Zipcode---------------------------------------------------

 Phone:----------------------------------------------------------------

 Fax:------------------------------------------------------------------

 Email:----------------------------------------------------------------

Public/Private Partnerships: (List Organization Names)

Public

 1.--------------------------------------------------------------------

 2.--------------------------------------------------------------------

 3.--------------------------------------------------------------------

 4.--------------------------------------------------------------------

 5.--------------------------------------------------------------------

Private

 1.--------------------------------------------------------------------

 2.--------------------------------------------------------------------

 3.--------------------------------------------------------------------

 4.--------------------------------------------------------------------

 5.--------------------------------------------------------------------

B. Project Information

Project Proposal: (Check All that Apply)

[ballot] Marketing

[ballot] Upgrade Aircraft

[ballot] New Route

[ballot] Personnel

[ballot] Increase Frequency Secure

[ballot] Low Fare Service

[ballot] Travel Bank, Transportation

[ballot] Service Restoration

[ballot] Surface

[ballot] Subsidy (specify)

[ballot] Regional Service

[ballot] Revenue Guarantee

[ballot] Launch New Carrier

[ballot] Start Up Cost Offset

[ballot] First Competitive Service

[ballot] Study

[ballot] Secure Additional Carrier

[ballot] Other

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

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

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

Project Goal: Project Is Intended To Address Problems Involving (Check 
All That Apply)

[ballot] High Fares
[ballot] Insufficient Air Service
[ballot] Unique
[ballot] Airport Circumstance
[ballot] Access to National Transportation System Needed
 [ballot] Other (specify)----------------------------------------------
Please provide a brief synopsis (in one paragraph) of the highlights 
of your proposal.

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

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

Project Cost:

 Federal amount requested:---------------------------------------------

 Total local financial contribution:-----------------------------------

 Airport funds:--------------------------------------------------------

 Non-Airport funds:----------------------------------------------------

 State financial contribution:-----------------------------------------

 Existing funds:-------------------------------------------------------

 New funds:------------------------------------------------------------

 In-kind contribution: (amount & description)--------------------------

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

 Total cost of project:------------------------------------------------

C. Air Service Development Zone: (Check Box if Interested in 
Designation)

D. Airport Information: (Where Service Would be Provided)

 Airport Name:---------------------------------------------------------

 Airport City:---------------------------------------------------------

 Airport State:--------------------------------------------------------

 Airport Code:---------------------------------------------------------

Airport Classification: (as of June 2002, per FAA's Airport Handbook)

[ballot] Non Hub
[ballot] Small Hub
[ballot] Medium Hub
[ballot] Other

Existing Landing Aids:

[ballot] Full ILS
[ballot] Outer/Middle Marker Approach
[ballot] Published Instrument
[ballot] Localizer

 [ballot] Other (specify)----------------------------------------------

Existing Service:

[ballot] Jet service
[ballot] Low Fare Service
[ballot] Turboprop

Air Carrier(s) Serving Airport:

Air Carriers

 1.--------------------------------------------------------------------

 2.--------------------------------------------------------------------

 3.--------------------------------------------------------------------

 4.--------------------------------------------------------------------

 5.--------------------------------------------------------------------

 6.--------------------------------------------------------------------

 7.--------------------------------------------------------------------

 8.--------------------------------------------------------------------

 9.--------------------------------------------------------------------

 10.-------------------------------------------------------------------

Current Flight Information: (Please Provide Attachment if You Need More 
Room)

Number of non-stop roundtrip flights per destination: ------


[[Page 24539]]


Number of one-stop, single-plane roundtrip flights per destination 
per week (identify services that are seasonal and dates of service): 
------

Aircraft Type (include number of seats): ------

Enplanements (Last Five Calendar Years to the Extent Applicable)

 1998------------------------------------------------------------------

 1999------------------------------------------------------------------

 2000------------------------------------------------------------------

 2001------------------------------------------------------------------

 2002------------------------------------------------------------------

E. Airfares: (Provide Current Available Airfares for Top 3 O&D 
Markets--if Applicable)

 O&D Market:-----------------------------------------------------------

 Airfare:--------------------------------------------------------------

 O&D Market:-----------------------------------------------------------

 Airfare:--------------------------------------------------------------

 O&D Market:-----------------------------------------------------------

 Airfare:--------------------------------------------------------------

F. Proximity of Other Airports: (per June 2002 FAA Handbook)

What is your closest:

Non-hub (w/jet service) Name --------
Small Hub Name --------
Medium Hub Name --------
Large Hub Name --------
Low-fare service Name --------

[FR Doc. 03-11179 Filed 5-6-03; 8:45 am]
BILLING CODE 4910-62-P