[Federal Register: August 24, 2004 (Volume 69, Number 163)]
[Notices]               
[Page 52057-52063]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr24au04-106]                         

=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

[Docket No. FAA-2004-18925]

 
Airport Improvement Program Grant Assurances; Proposed 
Modifications and Opportunity To Comment

AGENCY: Federal Aviation Administration (FAA), U.S. DOT.

ACTION: Notice of modification of Airport Improvement Program grant 
assurances and of the opportunity to comment.

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

SUMMARY: The FAA proposes to modify the standard grant assurances that 
are required of a sponsor before receiving a grant under the Airport 
Improvement Program (AIP). Pursuant to applicable law, the Secretary of 
Transportation is required to provide notice in the Federal Register 
and to provide an opportunity for public comment on proposals to modify 
the assurances and on proposals for additional AIP assurances.
    Modifications to the AIP grant assurances are primarily being made 
to remove grant assurances that govern the application and 
implementation of an AIP project that expires with the completion of 
the project and place them as grant agreement conditions or as 
certifications as part of the application process. Minor technical 
edits for clarification of certain assurances are also being proposed. 
Also, a new assurance is being proposed regarding the statutory 
requirement for Disadvantaged Business Enterprise (DBE) participation 
in airport concessions. Previously this requirement was incorporated by 
reference. Finally, two new assurances are being proposed as required 
by Vision 100--Century of Aviation Reauthorization Act, (Public Law 
(P.L.) 108-176).
    The FAA also believes that it is appropriate to review and 
revalidate the need for all of the assurances given the dynamic nature 
of airport operations, needs and economics. Although the assurances are 
generally verbatim restatements of current law, FAA believes it would 
be most helpful for the public to assist FAA in this review by 
soliciting comments about all of the assurances. Most assurances, if 
the need for deletion or change is justified, will require statutory 
change. FAA may use the public comments to justify future requests by 
the agency for statutory changes.

DATES: Comments must be submitted on or before 30 calendar days 
following publication in the Federal Register. Any necessary or 
appropriate revision to the assurances resulting from the comments 
received will be adopted as of the date of a subsequent publication in 
the Federal Register. Finally, comments may be provided on the project-
related assurances and certifications FAA is proposing to convert into 
grant conditions or certificates as listed in the table below. FAA 
anticipated the wording of the future grant conditions/certifications, 
which can be found at http://www.faa.gov/arp/pdf/assrnap.pdf, will be 

unchanged except to the extent that some minor changes may be made due 
to the new context for these conditions/certifications.

ADDRESSES: Comments may be delivered or mailed to the FAA, Airports 
Financial Assistance Division, APP-500, Attn: Mr. Kendall Ball, Room 
619, 800 Independence Ave., SW., Washington, DC 20591.

FOR FURTHER INFORMATION CONTACT: Mr. Kendall Ball, Airport Improvement 
Program Branch, APP 520, Airports Financial Assistance Division, Room 
619, FAA, 800 Independence Avenue, SW., Washington, DC 20591, Telephone 
(202) 267-7436.

SUPPLEMENTARY INFORMATION: The Secretary must receive certain 
assurances from a sponsor (applicant) seeking financial assistance for 
airport planning, airport development, noise compatibility planning or 
noise mitigation under Title 49, U.S.C., as amended. These assurances 
are submitted as part of a sponsor's application for Federal assistance 
and are incorporated into all grant agreements. As need dictates, these 
assurances are modified to reflect new Federal requirements. Notice of 
such proposed modifications is published in the Federal Register, and 
an opportunity for public comment is provided.
    The current assurances were published on February 3, 1988, at 53 FR 
3104 and amended on September 6, 1988, at 53 FR 34361; on August 29, 
1989, at 54 FR 35748; on June 10, 1994 at 59 FR 30076; on January 4, 
1995, at 60 FR 521; on June 2, 1997, at 62 FR 29761; and on August 18, 
1999, at 64 FR 45008.

Discussion of Modifications

    In the past, FAA used four separate sets of standard assurances: 
Airport Sponsors (owners/operators), Planning Agency Sponsors, Non-
Airport Sponsors Undertaking Noise Compatibility Program Projects 
(hereinafter referred to as Non-Airport Sponsor Assurances), and State 
Assurances (for the Block

[[Page 52058]]

Grant Program). Moreover, we included requirements for carrying out 
AIP-funded projects as general grant assurances. From time to time, 
this approach has led to confusion over the application of these 
requirements to projects completed without AIP support. FAA is 
modifying the assurances currently in effect to incorporate the changes 
noted below.
    To simplify the discussion, the modifications are shown in a table 
format for comparison with existing assurances, which can be found at 
http: //http://www.faa.gov/arp/pdf/assrnap.pdf. The disposition of each 

assurance will be shown as: (a) Retention as an assurance with its 
proposed new assurance number; (b) conversion to a certification to be 
included with the application for Federal Assistance (Standard Form 
424); or (c) conversion to a grant condition. Project related 
assurances will be converted to certifications or grant conditions. 
This change in approach will clarify those grant requirements that are 
both project specific and expire upon the completion of the project. 
This notice is not intended to change the manner in which grant 
agreement obligations are enforced.
    For the most part, assurances that are proposed for retention are 
incorporated without change, however, there are some instances of 
wording modifications for clarity that are noted in the table.
    As a result of this proposed change, the assurances for Planning 
Agency Sponsors and those for Non-Airport Undertaking Noise 
Compatibility Program Projects will be eliminated and incorporated 
either as grant application certifications or grant conditions since 
all of the assurances are effective only for the duration of the 
projects. In addition, two new assurances are added at the end as a 
result of the recently enacted Public Law 108-176 and another assurance 
was added in full text that was previously incorporated by reference. 
Finally, old assurance number 31 (proposed new assurance c. 15) is 
changed to reflect section 164 of Public Law 108-176, which permitted 
expanded use of revenue from sale of land purchased for noise 
compatibility purposes.

----------------------------------------------------------------------------------------------------------------
        Assurance number                      Title                                Disposition
----------------------------------------------------------------------------------------------------------------
A...............................  General.....................  Retained as A. General, with minor addition of
                                                                 block grant states in par. 1.
B...............................  Duration and Applicability..  Retained as B. Duration and Applicability with
                                                                 elimination of par. 3.
C. 1............................  General Federal Requirements  Conversion to grant condition, new assurance for
                                                                 the DBE concession requirement.
2...............................  Responsibility and Authority  Conversion to application certification.
                                   of the Sponsor.
3...............................  Sponsor Fund Availability...  Conversion to application certification.
4...............................  Good Title..................  Conversion to application certification;
                                                                 clarification added to assurance c. 1 (see old
                                                                 assurance no. 5 immediately below).
5...............................  Preserving Rights and Powers  Retained as assurance c. 1; clarifying change in
                                                                 subparagraph (b) to include reference to Good
                                                                 Title; delete provisions related to nonairport
                                                                 local governments' receiving funding for noise
                                                                 compatibility projects under former 5(c).
6...............................  Consistency with Local Plans  Conversion to application certification.
7...............................  Consideration of Local        Conversion to application certification.
                                   Interest.
8...............................  Consultation with Users.....  Conversion to application certification.
9...............................  Public Hearings.............  Conversion to application certification.
10..............................  Air and Water quality         Eliminated by P.L 108-176.
                                   Standards.
11..............................  Pavement Preventive           Retained as assurance c.2.
                                   Maintenance.
12..............................  Terminal Development          Conversion to application certification.
                                   Prerequisites.
13..............................  Accounting System, Audit,     Conversion to grant condition.
                                   and Record Keeping
                                   Requirements.
14..............................  Minimum Wage Rates..........  Conversion to grant condition.
15..............................  Veteran's Preference........  Conversion to grant condition.
16..............................  Conformity to Plans and       Conversion to grant condition.
                                   Specifications.
17..............................  Construction Inspection and   Conversion to grant condition.
                                   Approval.
18..............................  Planning Projects...........  Conversion to grant condition.
19..............................  Operation and Maintenance...  Retained as assurance c.3.
20..............................  Hazard Removal and            Retained as assurance c.4.
                                   Mitigation.
21..............................  Compatible Land Use.........  Retained as assurance c.5.
22..............................  Economic Nondiscrimination..  Retained as assurance c.6. with clarifying
                                                                 language.
23..............................  Exclusive Rights............  Retained as assurance c.7 with clarifying
                                                                 language.
24..............................  Fee and Rental Structure....  Retitled and retained as assurance c.8.
25..............................  Airport Revenues............  Retitled and retained as assurance c.9.
26..............................  Reports and Inspections.....  Par. (a), (c), and (d) retained as assurance
                                                                 c.10; par. (b) revised.
27..............................  Use of Government Aircraft..  Retained as assurance c.11.
28..............................  Land for Federal Facilities.  Retained as assurance c.12.
29..............................  Airport Layout Plan.........  Retained as assurance c.13.
30..............................  Civil Rights................  Retained as assurance c.14.
31..............................  Disposal of Land............  Retained as assurance c.15, wording changed in
                                                                 accordance with P.L. 108-176.
32..............................  Engineering and Design        Conversion to grant condition.
                                   Services.
33..............................  Foreign Market Restrictions.  Conversion to grant condition.
34..............................  Policies, Standards, and      Conversion to grant condition.
                                   Specifications.
35..............................  Relocation and Real Property  Conversion to grant condition.
                                   Acquisition.
36..............................  Access by Intercity Buses...  Retained as assurance c. 16.
37..............................  Disadvantaged Business        Retained as assurance c. 19.
                                   Enterprises.
New Assurance...................  Hangar Construction.........  New assurance c. 17.
New Assurance...................  Competitive Access..........  New assurance c.18.

[[Page 52059]]


New Assurance...................  Participation by              Incorporated as full text in assurance c. 19.,
                                   Disadvantaged Businesses in   as subparagraph (b).
                                   Airport Concessions
                                   (previously incorporated by
                                   reference).
----------------------------------------------------------------------------------------------------------------

    In summary, of the 39 provisions of the existing airport sponsor 
assurances, 19 will be retained as assurances, 12 will be converted to 
grant conditions and 8 will be converted to application certifications. 
One assurance was eliminated by Public Law 108-176, and three 
additional assurances are proposed (two as a result of Public Law 108-
176 and one due to the need to provide full text for an assurance that 
was previously incorporated by reference.)

Proposed Assurances

    The assurances being proposed under this notice are as follows:
Airport Sponsors

A. General

    1. These assurances shall be complied with in the performance of 
grant agreements for airport development, airport planning, and noise 
compatibility program grants for airport sponsors and block grant 
states.
    2. These assurances are required to be submitted as part of the 
project application by sponsors requesting funds under the provisions 
of Title 49, United States Code (U.S.C.), subtitle VII, as amended. As 
used herein, the term ``public agency sponsor'' means a public agency 
with control of a public-use airport; the term ``private sponsor'' 
means a private owner of a public-use airport; and the term ``sponsor'' 
includes both public agency sponsors and private sponsors.
    3. Upon acceptance of the grant offer by the sponsor, these 
assurances are incorporated into, and become part of, the grant 
agreement.

B. Duration and Applicability

1. Airport Development or Noise Compatibility Program Projects 
Undertaken by a Public Agency Sponsor
    The terms, conditions and assurances of the grant agreement shall 
remain in full force and effect throughout the useful life of the 
facilities developed or equipment acquired for an airport development 
or noise compatibility program project, or throughout the useful life 
of the project items installed within a facility under a noise 
compatibility program project, but in any event not to exceed twenty 
(20) years from the date of acceptance of a grant offer of Federal 
funds for the project. However, there shall be no limit on the duration 
of the assurances regarding Exclusive Rights and Airport Revenue so 
long as the airport is used as an airport. There shall be no limit on 
the duration of the terms, conditions, and assurances with respect to 
real property acquired with federal funds. Furthermore, the duration of 
the Civil Rights assurance shall be specified in the assurances.
2. Airport Development or Noise Compatibility Projects Undertaken by a 
Private Sponsor
    The preceding paragraph 1 also applies to a private sponsor except 
that the useful life of project items installed within a facility or 
the useful life of the facilities developed or equipment acquired under 
an airport development or noise compatibility program project shall be 
no less than ten (10) years from the date of acceptance of Federal aid 
for the project.

C. Sponsor Assurances

    The sponsor hereby assures and certifies, with respect to this 
grant that:
1. Preserving Rights and Powers
    (a) It will not take or permit any action that would operate to 
deprive it of any of the rights and powers necessary to perform any or 
all of the terms, conditions, and assurances in the grant agreement 
without the written approval of the Secretary, and will act promptly to 
acquire, extinguish, or modify any outstanding rights or claims of 
right of others that would interfere with such performance by the 
sponsor. This shall be done in a manner acceptable to the Secretary.
    (b) It will maintain good title and not sell, lease, encumber, or 
otherwise transfer or dispose of any part of its title or other 
interests in the property shown on Exhibit A to this application or, 
for a noise compatibility program project, that portion of the property 
upon which Federal funds have been expended, for the duration of the 
terms, conditions, and assurances in the grant agreement without 
approval by the Secretary. If the transferee is found by the Secretary 
to be eligible under Title 49, U.S.C., to assume the obligations of the 
grant agreement and to have the power, authority, and financial 
resources to carry out all such obligations, the sponsor shall insert 
in the contract or document transferring or disposing of the sponsor's 
interest, and make binding upon the transferee, all of the terms, 
conditions, and assurances contained in this grant agreement.
    (c) For noise compatibility program projects to be carried out on 
privately owned property, it will enter into an agreement with the 
property owner that includes provisions specified by the Secretary. It 
will take steps to enforce this agreement against the property owner 
whenever there is substantial non-compliance with the terms of the 
agreement.
    (d) If the sponsor is a private sponsor, it will take steps 
satisfactory to the Secretary to ensure that the airport will continue 
to function as a public-use airport in accordance with these assurances 
for the duration of these assurances.
    (e) If an arrangement is made for management and operation of the 
airport by any agency or person other than the sponsor or an employee 
of the sponsor, the sponsor will reserve sufficient rights and 
authority to ensure that the airport will be operated and maintained in 
accordance with Title 49 U.S.C., the regulations and the terms, 
conditions and assurances in the grant agreement, and shall ensure that 
such arrangement also requires compliance therewith.
2. Pavement Preventive Maintenance
    With respect to a project approved after January 1, 1995, for the 
replacement or reconstruction of pavement at the airport, it assures or 
certifies that it has implemented an effective airport pavement 
maintenance-management program and it assures that it will use such 
program for the useful life of any pavement constructed, reconstructed 
or repaired with Federal financial assistance at the airport. It will 
provide such reports on pavement condition and pavement management 
programs as the Secretary determines may be useful.
3. Operation and Maintenance
    (a) The airport and all facilities which are necessary to serve the 
aeronautical users of the airport, other than facilities owned or 
controlled by the United States, shall be operated at all times in a 
safe and serviceable condition and in accordance with the minimum 
standards as may be required or

[[Page 52060]]

prescribed by applicable Federal, state and local agencies for 
maintenance and operation. It will not cause or permit any activity or 
action thereon which would interfere with its use for airport purposes. 
It will suitably operate and maintain the airport and all facilities 
thereon or connected therewith, with due regard to climatic and flood 
conditions. Any proposal to close the airport temporarily for non-
aeronautical purposes must first be approved by the Secretary.
    In furtherance of this assurance, the sponsor will have in effect 
arrangements for:
    1. Operating the airport's aeronautical facilities whenever 
required;
    2. Promptly marking and lighting hazards resulting from airport 
conditions, including temporary conditions; and
    3. Promptly notifying airmen of any condition affecting 
aeronautical use of the airport.
    Nothing contained herein shall be construed to require that the 
airport be operated for aeronautical use during temporary periods when 
snow, flood, or other climatic conditions interfere with such operation 
and maintenance, repair, restoration, or replacement of any structure 
or facility which is substantially damaged or destroyed due to an Act 
of God or other condition or circumstance beyond the control of the 
sponsor.
    (b) It will suitably operate and maintain noise compatibility 
program items that it owns or controls upon which Federal funds have 
been expended.
4. Hazard Removal and Mitigation
    It will take appropriate action to assure that such terminal 
airspace as is required to protect instrument and visual operations to 
the airport (including established minimum flight altitudes) will be 
adequately cleared and protected by removing, lowering, relocating, 
marking, lighting, or otherwise mitigating existing airport hazards, 
and by preventing the establishment or creation of future airport 
hazards.
5. Compatible Land Use
    It will take appropriate action, to the extent reasonable, 
including the adoption of zoning laws, to restrict the use of land 
adjacent to or in the immediate vicinity of the airport to activities 
and purposes compatible with normal airport operations, including 
landing and takeoff of aircraft. In addition, if the project is for 
implementation of noise compatibility program measures upon which 
Federal funds have been expended, it will not cause or permit any 
change in land use, within its jurisdiction, that will reduce its 
compatibility with respect to the airport.
6. Economic Nondiscrimination
    (a) It will make the airport available as an airport for public use 
on reasonable terms and without unjust discrimination to all types, 
kinds and classes of aeronautical activities, including commercial 
aeronautical activities offering services to the public at the airport.
    (b) In any agreement, contract, lease, or other arrangement under 
which the airport sponsor grants a right or privilege to conduct or to 
engage in activity providing aeronautical services to the public at the 
airport, the sponsor will insert and enforce provisions requiring the 
contractor to:
    1. Furnish said services on a reasonable, and not unjustly 
discriminatory, basis to all users thereof, and
    2. Charge reasonable, and not unjustly discriminatory, prices for 
each unit of aeronautical service, provided that the service provider 
may be allowed to make reasonable and uniformly applicable price 
reductions for volume purchasers. Discounts may be offered on a basis 
other than volume provided the basis is reasonable and justified.
    (c) Each fixed-base operator at the airport shall be subject to the 
same rates, fees, rentals, and other charges as are uniformly 
applicable to all other fixed-base operators making the same or similar 
uses of such airport and using the same or similar facilities.
    (d) Each air carrier using such airport shall have the right to 
service its own aircraft or to use any commercial aeronautical service 
provider authorized or permitted by the airport sponsor to provide 
aeronautical services.
    (e) Each air carrier using such airport (whether as a tenant, 
nontenant, or subtenant of another air carrier tenant) shall be subject 
to such nondiscriminatory and substantially comparable rules, 
regulations, conditions, rates, fees, rentals, and other charges with 
respect to facilities directly and substantially related to providing 
air transportation as are applicable to all such air carriers making 
similar use of such airport and using similar facilities, subject to 
reasonable classifications such as tenants or nontenants and signatory 
carriers or non-signatory carriers. Classification or status as tenant 
or signatory shall not be unreasonably withheld by any airport provided 
an air carrier assumes obligations substantially similar to those 
obligations already imposed on air carriers in such classification or 
status.
    (f) It will not exercise or grant any right or privilege that 
operates to prevent any person, firm, or corporation operating its own 
aircraft on the airport from performing any services on its own 
aircraft, including, but not limited to, maintenance, repair, and 
refueling, provided that such service(s) are performed by the aircraft 
operators own employees.
    (g) If the airport sponsor elects to provide aeronautical services 
to the public, it shall do so only on the same terms as are uniformly 
applicable to other commercial aeronautical service providers 
authorized by the airport sponsor to provide such services at the 
airport. This assurance is not intended to prevent the airport sponsor 
from invoking its propriety exclusive right to be the sole provider of 
a given aeronautical service.
    (h) The sponsor may establish such reasonable, and not unjustly 
discriminatory, conditions to be met by all users of the airport as may 
be necessary for the safe and efficient operation of the airport.
    (i) The sponsor may prohibit or limit any given type, kind or class 
of aeronautical use of the airport if such action is necessary for the 
safe operation of the airport or necessary to serve the civil aviation 
needs of the public.
7. Exclusive Rights
    It will permit no exclusive right for the use of the airport by any 
person providing, or intending to provide, aeronautical services to the 
public. For purposes of this paragraph, providing services at an 
airport by a single fixed-base operator shall not be construed as an 
exclusive right if both of the following apply:
    (a) It would be unreasonably costly, burdensome, or impractical for 
more than one fixed-base operator to provide such service(s), and
    (b) Allowing more than one fixed-base operator to provide such 
service(s) would require the reduction of space currently leased 
pursuant to an existing agreement between such single fixed-based 
operator and such airport.
    It further agrees that it will not, either directly or indirectly, 
grant or permit any person, firm, or corporation, the exclusive right 
at the airport to conduct any aeronautical activities including, but 
not limited to, charter flights, pilot training, aircraft rental and 
sightseeing, aerial photography, crop dusting, aerial advertising and 
surveying, air carrier operations, aircraft sales and services, sale of 
aviation petroleum products whether or not conducted in

[[Page 52061]]

conjunction with other aeronautical activity, repair and maintenance of 
aircraft, sale of aircraft parts, and any other activities that, 
because of their direct relationship to the operation of aircraft, can 
be regarded as an aeronautical activity, and that it will terminate any 
exclusive right to conduct an aeronautical activity now existing at 
such an airport before the grant of any assistance under Title 49, 
U.S.C.
8. Airport Revenue Generation
    It will maintain a fee and rental structure for airport revenue 
generation for the facilities and services at the airport which will 
make the airport as self-sustaining as possible under the circumstances 
existing at the particular airport, taking into account such factors as 
the volume of traffic and economy of collection. Except for facilities 
intended to be constructed for revenue production or the real property 
upon which such facilities are constructed, no part of the Federal 
share for an airport development project or an airport planning or 
noise compatibility project for which a grant is made under Title 49, 
U.S.C., the Airport and Airway Improvement Act of 1982, the Federal 
Airport Act or the Airport and Airway Development Act of 1970 shall be 
included in the rate base in establishing fees, rates, and charges for 
users of that airport.
9. Airport Revenue Use
    (a) All revenues generated by the airport and any local taxes on 
aviation fuel established after December 30, 1987, will be expended by 
it for the capital or operating costs of the airport; the local airport 
system; or other local facilities that are owned or operated by the 
owner or operator of the airport and which are directly and 
substantially related to the actual air transportation of passengers or 
property; or for noise mitigation purposes on or off the airport. 
However, if covenants or assurances in debt obligations issued before 
September 3, 1982, by the owner or operator of the airport, or 
provisions enacted before September 3, 1982, in governing statutes 
controlling the owner or operator's financing provide for the use of 
the revenues from any of the airport owner or operator's facilities, 
including the airport, to support not only the airport but also the 
airport owner or operator's general debt obligations or other 
facilities, then this limitation on the use of all revenues generated 
by the airport (and, in the case of a public airport, local taxes on 
aviation fuel) shall not apply.
    (b) As part of the annual audit required under the Single Audit Act 
of 1984, the sponsor will direct that the audit will review, and the 
resulting audit report will provide an opinion concerning, the use of 
airport revenue and taxes in paragraph (a), and indicating whether 
funds paid or transferred to the owner or operator are paid or 
transferred in a manner consistent with Title 49 U.S.C. and any other 
applicable provision of law, including any regulation promulgated by 
the Secretary or Administrator.
    (c) Civil penalties or other sanctions will be imposed for 
violation of this assurance in accordance with the provisions of 
Section 471207 of Title 49, U.S.C.
10. Reports and Inspections
    It will:
    (a) Submit to the Secretary such annual or special financial and 
operations reports as the Secretary may reasonably request and make 
such reports available to the public; make available to the public at 
reasonable times and places a report of the airport budget in a format 
prescribed by the Secretary;
    (b) On request by an authorized agent of the Secretary, make 
available for inspection records, documents, deeds, agreements, 
regulations, cost allocation plans, budgets and other instruments of 
the airport and sponsor affecting airport development projects and uses 
of airport revenues.
    (c) For noise compatibility program projects, make records and 
documents relating to the project and continued compliance with the 
terms, conditions, and assurances of the grant agreement including 
deeds, leases, agreements, regulations, and other instruments, 
available for inspection by any duly authorized agent of the Secretary 
upon reasonable request.
    (d) In a format and time prescribed by the Secretary, provide to 
the Secretary and make available to the public following each of its 
fiscal years, an annual report listing in detail:
    1. All amounts paid by the airport to any other unit of government 
and the purposes for which each such payment was made; and
    2. All services and property by the airport to other units of 
government and the amount of compensation received for provision of 
each such service and property.
11. Use by Government Aircraft
    It will make available all of the facilities of the airport 
developed with Federal financial assistance and all those usable for 
landing and takeoff of aircraft to the United States for use by 
Government aircraft in common with other aircraft at all times without 
charge, except, if the use by Government aircraft is substantial, 
charge may be made for a reasonable share, proportional to such use, 
for the cost of operating and maintaining the facilities used. Unless 
otherwise determined by the Secretary, or otherwise agreed to by the 
sponsor and the using agency, substantial use of an airport by 
Government aircraft will be considered to exist when operations of such 
aircraft are in excess of those which, in the opinion of the Secretary, 
would unduly interfere with use of the landing areas by other 
authorized aircraft, or during any calendar month that:
    (a) Five (5) or more Government aircraft are regulatory based at 
the airport or on land adjacent thereto; or
    (b) The total number of movements (counting each landing as a 
movement) of Government aircraft is 300 or more, or the gross 
accumulative weight of Government aircraft using the airport (the total 
movement of Governmental aircraft multiplied by gross weights of such 
aircraft) is in excess of five million pounds.
12. Land for Federal Facilities
    It will furnish without cost to the Federal Government for use in 
conjunction with any air traffic control or air navigation activities, 
or weather-reporting and communication activities related to air 
traffic control, any areas of land or water, or estate therein, or 
rights in buildings of the sponsor as the Secretary considers necessary 
or desirable for construction, operation, and maintenance at Federal 
expense of space or facilities for such purposes. Such areas, or any 
portion thereof, will be made available as provided herein within four 
months after receipt of a written request from the Secretary.
13. Airport Layout Plan
    (a) It will keep up to date at all times an airport layout plan of 
the airport showing (1) Boundaries of the airport and all proposed 
additions thereto, together with the boundaries of all office areas 
owned or controlled by the sponsor for airport purposes and proposed 
additions thereto; (2) the location and nature of all existing and 
proposed airport facilities and structures (such as runways, taxiways, 
aprons, terminal buildings, hangars and roads), including all proposed 
extensions and reductions of existing airport facilities; and (3) the 
location of all existing and proposed non-aviation areas and of all 
existing improvements thereon. Such airport layout plans and each 
amendment, revision ,or modification thereof, shall be subject to

[[Page 52062]]

the approval of the Secretary which approval shall be evidenced by the 
signature of a duly authorized representative of the Secretary on the 
face of the airport layout plan. The sponsor will not make or permit 
any changes or alterations in the airport or any of its facilities that 
are not in conformity with the airport layout plan, as approved by the 
Secretary, and that might, in the opinion of the Secretary, adversely 
affect the safety, utility, or efficiency of the airport.
    (b) If a change or alteration in the airport or the facilities is 
made that the Secretary determines adversely affects the safety, 
utility, or efficiency of any federally owned, leased, or funded 
property on or off the airport and that is not in conformity with the 
airport layout plan as approved by the Secretary, the owner or operator 
will, if requested, by the Secretary (1) Eliminate such adverse effect 
in a manner approved by the Secretary; or (2) bear all costs of 
relocating such property (or replacement thereof) to a site acceptable 
to the Secretary and all costs of restoring such property (or 
replacement thereof) to the level of safety, utility, efficiency, and 
cost of operation existing before the unapproved change in the airport 
or its facilities.
14. Civil Rights
    It will comply with such rules as are promulgated to assure that no 
person shall, on the grounds of race, creed, color, national origin, 
sex, age, or handicap be excluded from participating in any activity 
conducted with or benefiting from funds received from this grant. This 
assurance obligates the sponsor for the period during which Federal 
financial assistance is extended to the program, except where Federal 
financial assistance is to provide, or is in the form of personal 
property or real property or interest therein or structures or 
improvements thereon in which case the assurance obligates the sponsor 
or any transferee for the longer of the following periods: (a) The 
period during which the property is used for a purpose for which 
Federal financial assistance is extended, or for another purpose 
involving the provision of similar services or benefits, or (b) the 
period during which the sponsor retains ownership or possession of the 
property.
15. Disposal of Land
    (a) For land purchased under a grant for airport noise 
compatibility purposes, it will dispose of the land when the land is no 
longer needed for such purposes at fair market value at the earliest 
practicable time. That portion of the proceeds of such disposition 
which is proportionate to the United States' share of acquisition of 
such land will, at the discretion of the Secretary, (1) Be paid to the 
Secretary for deposit in the Trust Fund, or (2) be reinvested in an 
approved noise compatibility project, as prescribed by the Secretary, 
including the purchase of nonresidential buildings or property in the 
vicinity of residential buildings or property previously purchased by 
the airport as part of a noise compatibility program.
    (b) For land purchased under a grant for airport development 
purposes (other than noise compatibility), it will, when the land is no 
longer needed for airport purposes, dispose of such land at fair market 
value or make available to the Secretary an amount equal to the United 
States' proportionate share of the fair market value of the land. That 
portion of the proceeds of such disposition which is proportionate to 
the United States' share of the cost of acquisition of such land will, 
(a) Upon application to the Secretary, be reinvested in another 
eligible airport improvement project or projects approved by the 
Secretary at that airport or within the national airport system, or (b) 
be paid to the Secretary for deposit in the Trust Fund if no eligible 
project exists.
    (c) Land shall be considered to be needed for airport purposes 
under this assurance if (a) It may be needed for aeronautical purposes 
(including runway protection zones) or serve as noise buffer land, and 
(b) the revenue from interim uses of such land contributes to the 
financial self-sufficiency of the airport. Further, land purchased with 
a grant received by an airport operator or owner before December 31, 
1987, will be considered to be needed for airport purposes if the 
Secretary or Federal agency making such grant before December 31, 1987, 
was notified by the operator or owner of the uses of such land, did not 
object to such use, and the land continues to be used for that purpose, 
such use having commenced no later than December 15, 1989.
    (d) Disposition of such land under (a), (b), or (c) will be subject 
to the retention or reservation of any interest or right therein 
necessary to ensure that such land will only be used for purposes which 
are compatible with noise levels and safety associated with operation 
of the airport.
16. Access by Intercity Buses
    The airport owner or operator will permit, to the maximum extent 
practicable, intercity buses or other modes of transportation to have 
access to the airport; however, it has no obligation to fund special 
facilities for intercity buses or for other modes of transportation.
17. Hangar Construction
    If the airport owner or operator and a person who owns an aircraft 
agree that hangar is to be constructed at the airport for the aircraft 
at the aircraft owner's expense, the airport owner or operator will 
grant to the aircraft owner a long-term lease for the hangar that is 
subject to such terms and conditions on the hangar as the airport owner 
or operator may impose.
18. Competitive Access
    (a) If the airport owner or operator of a medium or large hub 
airport (as defined in section 47102 of title 49, U.S.C.) has been 
unable to accommodate one or more requests by an air carrier for access 
to gates or other facilities at that airport in order to allow the air 
carrier to provide service to the airport or to expand service at the 
airport, the airport owner or operator shall transmit a report to the 
Secretary that--
    1. Describes the requests;
    2. Provides an explanation as to why the requests could not be 
accommodated; and
    3. Provides a time frame within which, if any, the airport will be 
able to accommodate the requests.
    (b) Such report shall be due on either February 1 or August 1 of 
each year if the airport has been unable to accommodate the request(s) 
in the six-month period prior to the applicable due date.
19. Disadvantages Business Enterprise
    (a) The recipient shall not discriminate on the basis of race, 
color, national origin or sex in the award and performance of any DOT-
assisted contract or in the administration of its DBE program or the 
requirements of 49 CFR Part 26. The recipient shall take all necessary 
and reasonable steps under 49 CFR Part 26 to ensure non discrimination 
in the award and administration of DOT-assisted contracts. The 
recipient's DBE program, as required by 49 CFR Part 26, and as approved 
by DOT, is incorporated by reference in this agreement. Implementation 
of this program is a legal obligation and failure to carry out its 
terms shall be treated as a violation of this agreement. Upon 
notification to the recipient of its failure to carry out its approved 
program, the Department may impose sanctions as provided for under Part 
26 and may, in appropriate cases, refer the matter for enforcement 
under 18 U.S.C. 1001 and/or the

[[Page 52063]]

Program Fraud Civil Remedies Act of 1936 (31 U.S.C. 3801).
    (b) The airport owner or operator will take necessary action to 
ensure, to the maximum extent practicable, that at least 10 percent of 
all businesses at the airport selling consumer products or providing 
consumer services to the public are small business concerns (as defined 
by regulations of the Secretary) owned and controlled by a socially and 
economically disadvantaged individual (as defined in section 47113(a) 
of title 49, U.S.C.) or qualified HUBZone small business concerns (as 
defend in section 3(p) of the Small Business Act). In taking this 
action, the airport owner or operator will be subject to the 
requirements of 49 CFR Part 23 or subsequent regulations issued by the 
Secretary to implement section 47107(e) of Title 49, U.S.C.
    These proposed assurances will be issued pursuant to the authority 
of title 49, U.S.C.
    Upon acceptance of the Airport Improvement Program (AIP) grant by 
an airport sponsor, the assurances become a contractual obligation 
between the airport sponsor and the Federal government.

    Dated: Issued in Washington, DC, on August 13, 2004.
Dennis E. Roberts,
Director, Office of Airport Planning and Programming.
[FR Doc. 04-19378 Filed 8-23-04; 8:45 am]

BILLING CODE 1505-01-M