Proposed Rule2026-22450
Update and Clarification of the Passenger Facility Charge Regulations
Primary source
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Published
November 4, 2026
Issuing agencies
Transportation DepartmentFederal Aviation Administration
Abstract
On September 27, 2023 FAA published a notice of proposed rulemaking (NPRM) to amend its Passenger Facility Charge (PFC) regulations to implement congressionally mandated changes to an existing pilot program within the PFC program. FAA also proposed to reaffirm existing program requirements and update or remove obsolete references within the PFC regulations. Following publication of the NPRM and before FAA issued a final rule, the FAA Reauthorization Act of 2024 (the 2024 Act) was signed into law on May 16, 2024. Several sections of the 2024 Act necessitate changes to PFC regulations or modifications to proposals made in the NPRM. As such, FAA now issues this supplemental proposal addressing: PFC turnback reductions; two new PFC-eligible projects; restrictions to PFC-eligible projects; FAA's timeline for review and acknowledgement of notice of intent (NOI) submissions; PFC streamlining review eligibility; and PFC submittal requirements. This proposal aligns with the requirements established by the 2024 Act.
Full Text
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<title>Federal Register, Volume 91 Issue 212 (Wednesday, November 4, 2026)</title>
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[Federal Register Volume 91, Number 212 (Wednesday, November 4, 2026)]
[Proposed Rules]
[Pages 69511-69522]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-22450]
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DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 158
[Docket No.: FAA-2022-1315; Notice No. 26-19]
RIN 2120-AL86
Update and Clarification of the Passenger Facility Charge
Regulations
AGENCY: Federal Aviation Administration (FAA), U.S. Department of
Transportation (DOT).
ACTION: Supplemental notice of proposed rulemaking (SNPRM).
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SUMMARY: On September 27, 2023 FAA published a notice of proposed
rulemaking (NPRM) to amend its Passenger Facility Charge (PFC)
regulations to implement congressionally mandated changes to an
existing pilot program within the PFC program. FAA also proposed to
reaffirm existing program requirements and update or remove obsolete
references within the PFC regulations. Following publication of the
NPRM and before FAA issued a final rule, the FAA Reauthorization Act of
2024 (the 2024 Act) was signed into law on May 16, 2024. Several
sections of the 2024 Act necessitate changes to PFC regulations or
modifications to proposals made in the NPRM. As such, FAA now issues
this supplemental proposal addressing: PFC turnback reductions; two new
PFC-eligible projects; restrictions to PFC-eligible projects; FAA's
timeline for review and acknowledgement of notice of intent (NOI)
submissions; PFC streamlining review eligibility; and PFC submittal
requirements. This proposal aligns with the requirements established by
the 2024 Act.
DATES: Send comments on or before January 4, 2027.
ADDRESSES: Send comments identified by docket number FAA-2022-1315
using any of the following methods:
<bullet> Federal eRulemaking Portal: Go to <a href="http://www.regulations.gov">http://www.regulations.gov</a> and follow the online instructions for sending your
comments electronically.
<bullet> Mail: Send comments to Docket Operations, M-30; U.S.
Department of Transportation, 1200 New Jersey Avenue SE, Room W12-140,
West Building Ground Floor, Washington, DC 20590-0001.
<bullet> Hand Delivery or Courier: Take comments to Docket
Operations in Room W12-140 of the West Building Ground Floor at 1200
New Jersey Avenue SE, Washington, DC, between 9 a.m. and 5 p.m., Monday
through Friday, except Federal holidays.
<bullet> Fax: Fax comments to Docket Operations at 202-493-2251.
Privacy: In accordance with 5 U.S.C. 553(c), DOT solicits comments
from the public to inform its rulemaking process. DOT posts these
comments, without edit, including any personal information the
commenter provides, to <a href="http://www.regulations.gov">www.regulations.gov</a>, as described in the system
of records notice (DOT/ALL-14 FDMS), which can be reviewed at
<a href="http://www.dot.gov/privacy">www.dot.gov/privacy</a>.
Docket: Background documents or comments received may be read at
<a href="http://www.regulations.gov">http://www.regulations.gov</a> at any time. Follow the online instructions
for accessing the docket or go to the Docket Operations in Room W12-140
of the West Building Ground Floor at 1200 New Jersey Avenue SE,
Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday,
except Federal holidays.
FOR FURTHER INFORMATION CONTACT: For technical questions concerning
this action, contact Carlos Fields, Airports Policy Branch, APP-510,
Department of Transportation/FAA/ARP, Mailstop E53-120, 1200 New Jersey
Ave. SE, Washington, DC 20590; Telephone (202) 267-8826; email
<a href="/cdn-cgi/l/email-protection#fe9d9f8c92918dd098979b929a8dbe989f9fd0999188"><span class="__cf_email__" data-cfemail="375456455b584419515e525b53447751565619505841">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
List of Abbreviations and Acronyms Frequently Used in This Document
AIP-Airport Improvement Program
ALP-Airport Layout Plan
CBI-Confidential Business Information
CFR-Code of Federal Regulations
DOT-U.S. Department of Transportation
FAA-Federal Aviation Administration
FOIA-Freedom of Information Act
ICAO-International Civil Aviation Organization
IRFA-Initial Regulatory Flexibility Analysis
NEPA-National Environmental Policy Act
NOI-Notice of Intent
NPIAS-National Plan of Integrated Airport Systems
NPRM-Notice of Proposed Rulemaking
OIG-Office of Inspector General
OMB-Office of Management and Budget
PFC-Passenger Facility Charge
RFA-Regulatory Flexibility Act
RIA-Regulatory Impact Analysis
SBA-Small Business Administration
U.S.C.-United States Code
I. Authority for This Rulemaking
FAA's authority to issue rules on aviation safety is found in 49
U.S.C. 106, which describes the authority of the FAA Administrator.
Subtitle VII, Aviation Programs, describes in more detail the scope of
FAA's authority. Formerly, 49 U.S.C. 106(g) outlined the duties and
powers of the FAA Administrator. The FAA Reauthorization Act of 2024
reserved 49 U.S.C. 106(g) and revised section 106(f) to include the
Administrator's duties and powers; therefore, in this SNPRM, FAA
revised the affected authority citations by citing to section 106(f)
instead of section 106(g).
This rulemaking is issued under the authority described in subtitle
VII, part A, subpart I, section 40117. Under that section, FAA is
charged with prescribing regulations to impose a PFC to finance
eligible airport-related projects. This regulation is within the scope
of that authority.
This rulemaking is also promulgated pursuant to 49 U.S.C. 106(f),
40117, 40116, 47106, 47107, 47111, 47114-47116, 47139, 47524, and
47526.
Finally, this rulemaking is issued pursuant to sections 713, 743,
775, 776, and 782 of the FAA Reauthorization Act of 2024 (the 2024
Act), Public Law 118-63 (May 16, 2024).
II. Executive Summary
A. Overview of the SNPRM
The 2024 Act modified a number of provisions impacting the PFC
program regulations. As such, this SNRPM proposes changes to 14 CFR
part 158 and certain proposals made in the September 2023 NPRM to align
with the 2024 Act's new requirements. Specifically, these proposals
address: PFC turnback reductions; two new PFC-eligible projects;
restrictions on PFC-eligible projects; FAA's timeline for review and
acknowledgement of NOI submissions; PFC streamlining review
eligibility; and PFC submittal requirements.
B. Statement of the Problem
The purpose of this SNPRM is to propose changes to the PFC
regulations to address requirements enacted by the
[[Page 69512]]
2024 Act. These changes supersede certain proposals included in the
NPRM titled ``Update and Clarification of the Passenger Facility Charge
Regulations'' published on September 27, 2023.\1\ Further, the 2024 Act
requires changes to additional part 158 regulations that the NPRM did
not propose to amend. As such, FAA could not address these new
provisions in the final rule resulting from the NPRM, as they require
notice and comment as mandated by the Administrative Procedure Act (5
U.S.C. 553).
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\1\ 88 FR 66319, September 27, 2023.
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C. Summary of the Costs and Benefits
This SNPRM proposes changes to the PFC regulations to incorporate
sections 713, 743, 775, 776, and 782 of the 2024 Act.
FAA examined the SNPRM proposals and identified one that would
benefit public agencies that control approximately 138 small-, medium-,
and large-hub airports. Specifically, these public agencies would
continue using the streamlined application process, shortening FAA's
review period from 120 days to 60 days, as outlined in PFC Update 73-
20, until the effective date of this final rulemaking. FAA recognizes
these gains in efficiency and faster service time to the affected
public agencies; however, these benefits, which would continue to
accrue to those public agencies, are not quantified or monetized.
FAA also evaluated the cost impact on stakeholders involved in this
SNPRM, which includes the public agencies and FAA. FAA determined that
the SNPRM changes would have no additional cost impacts to public
agencies and FAA.
III. Background
On September 27, 2023, FAA published a notice of proposed
rulemaking (NPRM) titled ``Update and Clarification of the Passenger
Facility Charge Regulations'' in the Federal Register.\2\ In the NPRM,
FAA proposed to amend PFC regulations found in part 158 to implement
changes to a congressionally mandated pilot program simplifying the
process for public agencies controlling commercial service airports to
obtain FAA authority to impose and use PFCs to fund airport development
projects. The NPRM was in response to the congressional mandates found
in the FAA Reauthorization Act of 2018 (the 2018 Act).\3\ The comment
period for the NPRM closed on November 27, 2023 and FAA received six
comments.
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\2\ 88 FR 66319, September 27, 2023.
\3\ Public Law 115-254, enacted October 5, 2018.
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The 2024 Act renamed the title of 49 U.S.C. 40117(l) from ``Pilot
Program for Passenger Facility Charge Authorizations'' to ``Passenger
Facility Charge Streamlining.'' This change does not affect PFC program
implementation and establishes that the PFC streamlining process is no
longer a pilot program.
Need for Supplemental Notice of Proposed Rulemaking (SNPRM)
The 2024 Act passed on May 16, 2024, which was before FAA published
a final rule for the September 2023 NPRM. The 2024 Act included several
sections addressing elements of the PFC program. In some instances,
such as what types of projects FAA may object to in terms of the PFC
streamlining process, the 2024 Act conflicted with the NPRM's proposal
and, therefore, requires FAA to put forth new proposals to reflect the
2024 Act's provisions. In other instances, the 2024 Act impacts PFC
regulations not contemplated by the NPRM.
IV. Discussion of Supplemental Proposals
In this SNPRM, FAA proposes to:
<bullet> change PFC turnback reductions,
<bullet> add two new PFC eligible projects,
<bullet> remove restrictions to PFC eligible projects,
<bullet> update FAA's timeline for review and acknowledgement for
NOI submissions,
<bullet> change PFC streamlining review eligibility, and
<bullet> amend PFC submittal requirements.
FAA also notes in this SNPRM that FAA uses both ``notice of
intent'' (NOI) and ``PFC streamlining'' when referring to the
accelerated PFC review process. With respect to the PFC program,
``NOI'' is the document submitted by the public agency notifying FAA of
the intent to impose, use, or both impose and use PFC revenue. ``PFC
streamlining'' is the process or procedures used to review PFC NOI
submittals in an expedited manner within 60 days, versus the 120 days
specified in 49 U.S.C. 40117(c)(4).
A. PFC Turnback Reductions
Prior to enactment of the 2024 Act, under 49 U.S.C. 47114(f),
medium- and large-hub airports collecting at a PFC level of $3 or less
were subject to a 50 percent reduction of their Airport Improvement
Program (AIP) apportioned funds. Medium or large airports collecting at
a PFC level greater than $3 were subject to a 75 percent reduction of
their AIP apportioned funds.
The 2024 Act decreased these percentages from 50 percent for
medium- and large-hub airports collecting at a level of $3 or less and
75 percent for medium- and large-hub airports collecting at a PFC level
greater than $3 to 40 percent and 60 percent, respectively.\4\ The 2024
Act also created a new criterion to determine when a small-hub,
transitioning to a medium- or large-hub airport, qualifies for a
turnback against the airport's apportionment.<SUP>5 6</SUP> The new
criterion is that an airport must be designated as a medium- or large-
hub airport for three consecutive years before a turnback can be
applied. For example, a small-hub airport that becomes a medium- or
large-hub must remain a medium- or large-hub airport for three years in
order for the new criterion to take effect. Accordingly, FAA proposes
to amend Sec. Sec. 158.93 and 158.95 to align the regulatory text with
the new statutory requirements.
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\4\ 2024 FAA Reauthorization Act (Pub. L. 118-63), Section
713(B)-(C); 49 U.S.C. 47114(f).
\5\ 49 U.S.C. 47114(f)(2)(B).
\6\ ``Turnback'' is a reduction in Airport Improvement Program
(AIP) apportionment as outlined in 49 U.S.C. 47114(f).
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B. Two New PFC Eligible Projects
The 2024 Act added two new types of projects FAA should consider as
eligible airport-related projects.\7\ First, the 2024 Act established
eligibility for projects ``at a small hub airport for a noise barrier
where the day-night average sound level from commercial, general
aviation, or cargo operations is expected to exceed 55 decibels as a
result of new airport development.'' \8\ Second, the 2024 Act added
projects that replace ``existing workspace elements (including any
associated in-kind facility or equipment within or immediately adjacent
to a terminal development or renovation project at such airport)
related to the relocation of a Federal agency on airport grounds due to
such terminal development or renovation project for which development
costs are eligible costs under this section.'' \9\
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\7\ 2024 FAA Reauthorization Act (Pub. L. 118-63), Section 775;
49 U.S.C. 40117 (a)(3)(H) and (I).
\8\ 49 U.S.C. 40117(a)(3)(H).
\9\ 49 U.S.C. 40117(a)(3)(I).
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FAA interprets the second new project type to include projects
related to the relocation of a Federal agency's existing workspace due
to an eligible airport development project. The in-kind replacement of
that Federal agency's affected workspace elements is now eligible for
PFCs. For example, if a terminal development project, funded by PFCs,
impedes (by means of physical
[[Page 69513]]
interference) existing Transportation Safety Administration (TSA)
workspace elements, this may force the relocation of the workspace
elements. The replacement of these workspace elements would be eligible
for PFCs. \10\
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\10\ FAA Order 5100.38D, Change 1, Airport Improvement Program
Handbook (AIP Handbook), Paragraph 3-74, Facility Impeding an AIP
Development Project--Costs to Rebuild or Relocate in Another
Location. February 26, 2019.
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Accordingly, FAA proposes amending Sec. 158.15(b) to add (b)(10)
and (11) to add these two new eligible project types.
C. Restrictions to PFC Eligible Projects
The 2024 Act amended 49 U.S.C. 47139 to repeal emission credit
requirements for certain PFC-eligible projects.\11\ Specifically,
section 47139 now allows airports to receive emission credits even when
they are outside of a nonattainment or maintenance area. As a corollary
to that revision, the Act also revised the definition of ``airport
development'' under 49 U.S.C. 47102(3)(K) and (L) to no longer require
otherwise eligible airport low emissions projects to be located in air
quality nonattainment or maintenance areas. The existing language in
Sec. 158.15(b)(8)(i) and (ii) cross-references ``airport development''
projects (as defined under the new definition in section 47102). As a
result, FAA proposes to align the proposed regulatory text with this
statutory change by modifying Sec. 158.15(b) to remove the paragraphs
referencing those emissions credit requirements. As a result, FAA
proposes to remove the following text from existing Sec. 158.15(b):
``(8) If the airport is in an air quality nonattainment area (as
defined by section 171(2) of the Clean Air Act (42 U.S.C. 7501(2)) or a
maintenance area referred to in section 175A of such Act (42 U.S.C.
7505a), and the project will result in the airport receiving
appropriate emission credits as described in 49 U.S.C. 47139, a project
for:''.
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\11\ 2024 FAA Reauthorization Act (Pub. L. 118-63), Section 782.
42 U.S.C. 7501(2).
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Accordingly, under this proposal, projects that would convert
vehicles and ground support equipment powered by a diesel or gasoline
engine to low-emission technology or acquire low-emission technology
vehicles or ground support equipment remain PFC-eligible at any covered
airport, as set forth in 49 U.S.C. 40117(a)(3)(A). These two remaining
provisions would be renumbered as Sec. 158.15(b)(8) and (9) from Sec.
158.15(b)(9) and (10), respectively.
D. FAA's Timeline for Review and Acknowledgement of NOI Submissions
Prior to the 2018 Act, NOIs were submitted by public agencies
controlling non-hub airports to FAA for review, and FAA was required to
issue an acknowledgment or objection within 30 days of that submission.
The NPRM issued on September 27, 2023 retained the 30-day deadline for
acknowledgement or objection.
Subsequently, the 2024 Act extended FAA's acknowledgement and
objection period for NOI submissions from 30 days to 60 days.\12\
However, the 2024 Act failed to make the corresponding amendment to the
paragraph on the authority to impose a charge in section 40117(l)(5).
Said provision states: ``Unless the Secretary objects within 30 days
after receipt of the eligible agency's notice, the eligible agency is
authorized to impose a [PFC] in accordance with the terms of its notice
under this subsection.'' \13\ These two provisions do not align.
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\12\ ``The Secretary shall acknowledge receipt of the notice and
indicate any objection to the imposition of a passenger facility
charge under this subsection for any project identified in the
notice within 60 days after receipt of the eligible agency's
notice.'' 49 U.S.C. 40117(l)(4)(A) (emphasis added).
\13\ 49 U.S.C. 40117(l)(5).
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It would be administratively difficult and inefficient to manage
the PFC program with two different deadlines: a 60-day deadline for FAA
to authorize or object to the imposition of PFCs and a 30-day deadline
for an eligible Agency to impose a PFC. It would also be nonsensical to
develop a program where public agencies could begin imposing PFCs after
30 days of submitting a NOI with the possibility that FAA may object to
the NOI within 60 days would create a procedural and administrative
burden for both public agencies and air carriers.\14\
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\14\ ``Air carrier'' means a citizen of the United States
undertaking by any means, directly or indirectly, to provide air
transportation. 49 U.S.C. 40102(a)(2).
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For example, under section 40117(l)(5), a public agency may submit
a notice of intent to impose and use PFC funds on a project. If FAA
does not object within 30 days, the public agency would be authorized
to impose, or impose and use, PFC money on that project. Under Sec.
158.43, the public agency, once authorized, notifies air carriers of
the latter's obligation to collect PFCs for remittance to the public
agency beginning on the charge effective date. However, under section
40117(l)(4)(A), FAA may complete its review and issue an objection
after 30 days but within 60 days. If that occurs, the eligible agency
is not and never was allowed to impose and use PFC funds for the
project. The eligible agency would then be required to return any PFC
funds collected and spent for that project to the air carriers, who
would then be responsible for refunding passengers.
To spare all entities from unnecessary administrative burden and to
avoid any unauthorized collection of PFC funds, FAA proposes in this
rulemaking that the 60 days FAA has to issue an objection to a proposed
PFC project is also the same length of time that must elapse before an
eligible agency is authorized to impose a PFC absent FAA's objection.
This proposal is contained in Sec. 158.32(a).
With the additional 30 days, FAA will have the ability to consider
complex projects submitted under the NOI process that FAA previously
did not have the ability to consider in a 30-day window. Complex
projects typically include non-standard projects with multiple
components and involve the movement of passengers and baggage. The more
components included in a project, the more variables, details,
prorations, calculations, and eligibility determinations must be
completed. Comparatively, less complex projects include single
components, do not involve the movement of passengers and baggage, and
are typically prescribed in FAA design and safety standards.\15\ More
complex projects require extensive review on the part of FAA to assess
the proposal adequately to make a final determination. The 60-day time
frame affords FAA more time to review complex projects under the
streamlined procedures.
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\15\ Current FAA Advisory Circulars Required for Use in AIP
Funded, IIJA Funded, and PFC Approved Projects. <a href="https://www.faa.gov/sites/faa.gov/files/arp-aip-pfc-checklist-2025-03-05.pdf">https://www.faa.gov/sites/faa.gov/files/arp-aip-pfc-checklist-2025-03-05.pdf</a>. March 3,
2025.
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FAA acknowledges that the statutory language in section 40117(l)(5)
would, on its own, allow for a public agency to begin imposing fees
within 30 days of submission, regardless of FAA action. However, as
mentioned above, to avoid administrative waste for the public agencies,
air carriers, and FAA, FAA believes it is necessary to align the time
period in which a public agency may impose a PFC with the time FAA has
to complete a review of the NOI, as extended in the 2024 Act. The FAA
recognizes that if it were to adopt a final rule that would allow for
the inefficient situation described above, FAA would also need to
establish clear requirements on how unauthorized funds must be refunded
from both the public agency to the air carrier and from the air carrier
to passengers. FAA would expect that
[[Page 69514]]
these requirements would include relatively short deadlines for both
refunds, as these funds were not legally authorized, and that they must
be refunded in dollars, especially to passengers (i.e., not credits or
miles). FAA requests comment on this proposal and whether imposing a
consistent 60-day timeframe for both FAA objection and the
authorization to begin collecting PFCs would lead to results not
discussed in this SNPRM.
In addition, in the NPRM, FAA proposed to create Sec. 158.31 to
include regulations for reviews of NOIs. In Sec. 158.31, as proposed
in the NPRM, FAA proposed that a public agency would be notified within
30 days by FAA if a project is ineligible for the NOI procedure. Due to
changes stemming from the 2024 Act discussed above, FAA modifies Sec.
158.31(a) as proposed in the NPRM to remove the 30-day timeframe for
FAA to notify a public agency if a project is ineligible for the NOI
procedure.
E. PFC Streamlined Review Eligibility
The 2024 Act established the circumstances under which FAA may or
may not object to PFC streamlining.\16\ FAA proposes to amend
Sec. Sec. 158.30 and 158.31 by inserting the allowed and prohibited
criteria into these sections.
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\16\ Public Law 118-63, section 776; 49 U.S.C. 40117(l)(4)(A)-
(B).
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The NPRM proposed to mirror the policy found in PFC Update 73-20.
However, the 2024 Act modified the list of projects ineligible for PFC
streamlining found in PFC Update 73-20 and proposed by FAA in the NPRM.
This proposal reflects those changes.
The following paragraphs contain a detailed description of the
proposals in these two areas.
i. Prohibited Objection, Allowed Objection, and Objected
FAA proposes to align the projects eligible for PFC streamlining
with the 2024 Act. Specifically, the 2024 Act created ``allowed'' and
``prohibited'' objections for the NOI process. FAA notes that
``objection'' for the purposes of PFC streamlining differs from an
``objection'' under the PFC application process. Discussion of the
various forms of ``objection'' continues in the following sections.
ii. Objection to Notice of Intent or Application
FAA's objection to a public agency availing itself of the NOI
process differs from an objection to a PFC application. A project in
which FAA is allowed to object to the use of the NOI process may
proceed to the traditional PFC application process for further review.
FAA may object to the application should the application not meet the
criteria of the PFC program. FAA is not proposing to change existing
eligibility criteria for PFC applications.
Currently, FAA is following PFC Update 73-20 as required by the
2024 Act until the effective date of this final rulemaking. PFC Update
73-20 provides internal guidance on processing applications to impose
only, use only, or impose and use PFCs received from small-, medium-,
and large-hub airports. PFC Update 73-20 identifies projects that are
ineligible for the streamlined process, and the 2024 Act incorporated
most of these into the ``Allowed'' objections described in this SNRPM.
FAA does not propose to change its current process except to
incorporate ``prohibited'' and ``allowed'' sections as described in
Section E (iii) and (iv) of this SNPRM.
To distinguish those PFC projects acknowledged under the NOI
process from projects approved under the traditional PFC application
method found and subject to 49 U.S.C. 46110 as a final agency
determination, FAA uses the PFC project statuses to issue a
determination on the NOI process only. These three statuses are
``Acknowledged,'' ``Partially Acknowledged,'' and ``Objected.''
``Objected'' is a project status used to reflect FAA's rejection of
the imposition of a PFC for a project through NOI or in response to the
NOI not following the process of 49 U.S.C. 40117(l). FAA will continue
to object to a project that is not eligible because it is not an
``eligible airport-related project'' as defined by 49 U.S.C.
40117(a)(3). FAA will also continue to object to NOIs, in their
entirety, that do not meet the statutory requirements of 49 U.S.C.
40117(l)(2) and (3) as in proposed Sec. 158.32.
iii. Prohibited Objection
Under the 2024 Act, ``prohibited objections'' now limit FAA's
ability to exclude certain types of projects from consideration in the
PFC streamlining process. The 2024 Act states that FAA ``may not object
to an eligible airport-related project that received Federal financial
assistance for airport development, terminal development, airport
planning, or for the purposes of noise compatibility, if the Federal
financial assistance and passenger facility charge collection
(including interest and other returns on the revenue) do not exceed the
total cost of the project.'' \17\ As such, any AIP or other airport
grant with an eligible airport-related project that receives an FAA
airport grant must be considered for review through the PFC
streamlining process. Eligible airport-related projects that receive an
FAA airport grant would still need to comply with the requirements of
the PFC program to be eligible for PFC streamlining, including such PFC
project requirements as objectives, consultation, Airport Layout Plan
(ALP), National Environmental Policy Act (NEPA), airspace, detailed
project costs, competition plan, and noise.\18\ FAA proposes to amend
part 158 by adding Sec. 158.31(a)(2) for criteria allowing proposed
projects to follow the NOI process consistent with the Act.
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\17\ Public Law 118-63, section 776; 49 U.S.C. 40117(l)(4)(B).
\18\ Public Law 118-63, section 776; 14 CFR 158.30 and 158.31.
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iv. Allowed Objection
Per the 2024 Act, FAA may now object to the acceptance of certain
projects under the PFC streamlining process. The 2024 Act classified
these types of projects as ``allowed objection.'' This list conflicts
with the list of eight types of projects ineligible for PFC
streamlining found in the NPRM,\19\ which mirrors those found in PFC
Update 73-20. The eight types of projects in the NPRM included: (1)
Significant policy precedent; (2) Significant legal issues; (3)
Significant controversy, as evidenced by significant opposition to
FAA's proposed action by the applicant or other airport authorities,
airport users, Federal, State, or local agencies, elected officials, or
communities; (4) Multimodal projects; (5) Significant airport noise,
access, or revenue diversion issues, including compliance with 49
U.S.C. 47521 and 49 U.S.C. 47111(e); (6) Debt Service on otherwise
ineligible projects; (7) Blending of two or more PFC decisions to
obtain a uniform collection level; and (8) Terminal building projects
in excess of $25 million, except stand-alone passenger boarding
bridges.
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\19\ 88 FR 66319.
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The Act incorporated most of these types of projects into the list
of allowed objections. However, due to the requirements of the 2024
Act, FAA is no longer proposing to object to the use of the PFC
streamlining process for projects involving debt service on otherwise
ineligible projects; blending of two or more PFC decisions to obtain a
uniform collection level; and terminal building projects in excess of
$25 million, except stand-alone passenger
[[Page 69515]]
boarding bridges, as proposed in the NPRM.
FAA proposes to amend Sec. 158.31 to incorporate allowed
objections under the 2024 Act. The six allowed objections to PFC
streamlining are: (1) establishes significant policy precedent; (2)
raises significant legal issues; (3) garners significant controversy,
as evidenced by significant opposition to the proposed action by the
applicant or other airport authorities, airport users, governmental
agencies, elected officials, or communities; (4) raises significant
revenue diversion, airport noise, or access issues, including
compliance with section 47111(e) or subchapter II of chapter 475; (5)
includes multimodal components; or (6) serves no aeronautical purpose.
Allowed objections one through five were previously proposed in similar
form in the NPRM and are reproposed in this SNPRM without change.
The 2024 Act created a new type of classification under which FAA
may object to including a project under the PFC streamlining process.
The new objection covers projects that serve no aeronautical
purpose.\20\ These projects may require additional information on a
case-by-case basis, if the project otherwise meets the requirements of
the PFC program, to determine eligibility. FAA proposes amending Sec.
158.3 to include a definition for ``no aeronautical purpose''
applicable only to part 158. FAA defines ``no aeronautical purpose''
for the purposes of the PFC program as any project located on the
airport that is not directly related to the safe and efficient
operation of aircraft, nor directly related to the movement of
passengers and baggage.
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\20\ Public Law 118-63, Section 776; 49 U.S.C.
40117(l)(4)(C)(vi).
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FAA also recognizes that this new objection may overlap with the
types of projects that are ineligible for PFCs and do not serve an
aeronautical purpose. Such projects may include: decorative
landscaping, sculptures, works of art, cell phone waiting lots, or
roads to non-aeronautical areas or facilities.
F. PFC Submittal Requirements
The 2018 and 2024 Acts placed limitations on FAA's authority to
review and approve ALPs.\21\
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\21\ 49 U.S.C. 47107(x)(2)(A); Public Law 118-63, Section 743.
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The information obtained from an ALP is vital for FAA to review a
proposed construction project adequately. Prior to the 2018 and 2024
Acts, all proposed PFC construction projects were required to be
depicted on an FAA-approved ALP before FAA approved PFC use.\22\
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\22\ 14 CFR 158.25(c)(1)(ii) and 14 CFR 158.30(c)(1)(ii).
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The changes introduced by the 2018 and 2024 Acts limited instances
in which FAA may require an ALP approval for proposed construction
projects included within a PFC application or NOI. Details of these
instances are codified in 49 U.S.C. 47107(x), and FAA is proposing
changes to the PFC regulations to align with the change in statute.
Under section 47107(x)(1), FAA may only review and approve or
disapprove certain portions of an ALP.\23\ And under section
47107(x)(2), FAA is prohibited from indirectly regulating or placing
conditions on any project that would be reflected in an ALP but is not
subject to FAA ALP approval.\24\ In response to these statutory
requirements, FAA is proposing to revise Sec. Sec. 158.25(c) and
158.30(c), as explained below.
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\23\ ``[T]he Secretary may review and approve or disapprove only
the portions of the plan (or any subsequent revision to the plan)
that (A) materially impact the safe and efficient operation of
aircraft at, to, or from the airport; (B) adversely affect the
safety of people or property on the ground as a result of aircraft
operations; or (C) adversely affect the value of prior Federal
investments to a significant extent.'' 49 U.S.C. 47107(x)(1).
\24\ ``The Secretary may not . . . directly or indirectly
regulate or place conditions on (including through any grant
assurance), any project that is not subject to [section
47107(x)(1)].'' 49 U.S.C. 47107(x)(2).
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Under Sec. 158.25(c), to determine eligibility, FAA proposes
requiring the description and a drawing depicting the location of a
PFC-funded proposed project for projects required to be shown on an ALP
but not requiring FAA review and approval.\25\ FAA also proposes
revising Sec. 158.25(c)(1)(ii)(A) and (c)(2)(iv)(A) so that the
language is uniform with this proposal. The proposed revision to those
paragraphs adds ``and requiring FAA review and approval'' after ``For
projects required to be shown on an ALP''. Similarly, under Sec.
158.30(c), FAA proposes requiring a description and a drawing depicting
the location of a proposed project for projects required to be shown on
an ALP but not requiring FAA review and approval. As with Sec.
158.25(c)(1)(ii)(A) and (c)(2)(iv)(A), for projects required to be
shown on an ALP and requiring FAA review and approval, FAA proposes
requiring the ALP depicting the project has been approved by FAA and
the date of such approval.
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\25\ FAA determines whether FAA review and approval is required
on a case-by-case basis. See Initial Instructions to Airports
District Offices and Regional Office of Airports Employees Regarding
Airport Layout Plan Reviews and Projects Potentially Affected by the
FAA Reauthorization Act of 2024 (Oct. 3, 2024), <a href="https://www.faa.gov/airports/planning_capacity/alp-approval-preliminary-instructions">https://www.faa.gov/airports/planning_capacity/alp-approval-preliminary-instructions</a>.
---------------------------------------------------------------------------
These proposed changes, in response to section 47107(x)(2), will
help ensure that FAA does not indirectly regulate projects that
Congress has exempted from FAA ALP review and approval under section
47107(x)(1). At the same time, the proposed changes to Sec. Sec.
158.25(c) and 158.30(c) will help FAA fulfill its statutory duties to
ensure PFC eligibility and justification of a proposed project.\26\
Projects that are not depicted on an ALP remain unaffected by these
proposed revisions.
---------------------------------------------------------------------------
\26\ 49 U.S.C. 40117(a)(3); 49 U.S.C. 40117(d).
---------------------------------------------------------------------------
FAA invites comments on the proposed revisions to Sec. Sec.
158.25(c) and 158.30(c).
V. Regulatory Notices and Analyses
A. Regulatory Evaluation
Executive Order (E.O.) 12866 (``Regulatory Planning and Review'')
and E.O. 13563 (Improving Regulation and Regulatory Review'') require
agencies to regulate in the ``most cost-effective manner,'' to make a
reasoned determination that ``the benefits of the intended regulation
justify its costs,'' and to develop regulations that ``impose the least
burden on society.'' The Office of Management and Budget has determined
that this proposed rule is not a significant regulatory action as
defined in section (3)(f)(1) of E.O. 12866.
This proposed rule, if finalized as proposed, is expected to be an
E.O. 14192 deregulatory action.
1. Need for the Regulation
The SNPRM would amend the PFC regulations to incorporate sections
713, 743, 775, 776, and 782 of the Act.
FAA proposes in this SNPRM changes to: PFC turnback reductions; add
two new PFC eligible projects; restrictions to PFC eligible projects,
FAA's timeline for review and acknowledgement of NOI submissions; PFC
streamlining review eligibility; and PFC submittal requirements. As
noted above, these changes supersede certain proposals in the NPRM.
2. Baseline for the Analysis
The baseline for this analysis remains the same as presented in the
2023 NPRM. Five major sources of airport capital development funding
are (1) the AIP; (2) PFCs imposed pursuant to Federal law; (3) tax-
exempt bonds; (4) State and local grants; and (5) airport operating
revenue from tenant lease and
[[Page 69516]]
other revenue-generating activities, such as landing fees.\27\
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\27\ Does not incorporate time limited grant programs, like
Infrastructure Investment and Jobs Act (IIJA) and COVID grants or
any other Federal program.
---------------------------------------------------------------------------
The AIP has been providing Federal grants for airport development
and planning since the passage of the Airport and Airway Improvement
Act of 1982 (Pub. L. 97-248). AIP funding is usually spent on projects
that support aircraft operations, such as runways, taxiways, aprons,
noise abatement, land purchase, and safety or emergency equipment. The
funds obligated for AIP are drawn from the Airport and Airway Trust
Fund, which is supported by a variety of aviation user fees and fuel
taxes.
Airports use different combinations of these sources to support
various needs depending on the individual airport's financial situation
and the type of project being considered. Smaller airports, such as
those that primarily serve general aviation activities, including
private and charter operations, are much more dependent on AIP to meet
their capital needs. Larger airports are much more likely to issue tax-
exempt bonds or finance capital projects with the proceeds of PFCs.
The PFC program was established in 1990. It was modified in 2005 to
institute a pilot program for non-hub airports to streamline the
application process in order for them to access the PFC revenues more
efficiently and rapidly. The streamlined application process ensures
the non-hub airports' PFC applications be treated as a NOI with FAA
review and acknowledgment within 30 days instead of issuing a final
decision approving or disapproving the application, in whole or in
part, in 120 days.
PFC Update 73-20, published in January 2020, gave notice that FAA
would review and acknowledge all allowed PFC applications received from
small-, medium-, or large-hub airports within 30 days using streamlined
procedures. Then, the 2024 Act changed the time allowed for FAA to
review and acknowledge notices of intent to 60 days for all eligible
airports. This SNPRM proposes to codify this significant statutory
change into FAA's part 158 regulations.
According to FAA's National Plan of Integrated Airport Systems
(NPIAS), which details the amounts and types of airport development
eligible for Federal funding under the AIP over the next five years,
there are nearly 3,300 public-use airports within the national airport
system. The 2025-2029 NPIAS \28\ published on October 28, 2024
identified 252 non-hub, 74 small-hub, 33 medium-hub, and 31 large-hub
airports in addition to 2,910 other public-use airports.
---------------------------------------------------------------------------
\28\ ``Appendix A: List of NPIAS Airports'' following this link:
<a href="http://www.faa.gov/airports/planning_capacity/npias/current">www.faa.gov/airports/planning_capacity/npias/current</a>. Last accessed
on August 1, 2025.
---------------------------------------------------------------------------
This SNPRM would affect approximately 138 small-, medium-, and
large-hub airports. As explained in the preceding paragraphs, proposed
changes do not concern either the 2,910 other airports that do not use
PFC revenues or the 252 non-hub airports that are currently benefiting
from the streamlined application process over the last two decades.
3. SNPRM Benefits and Costs
FAA examined the SNPRM changes and identified one provision that
would benefit approximately 138 small-, medium-, and large-hub
airports. Specifically, these airports would continue to use the
streamlined application process, shortening FAA's final decision
approving or disapproving the application, in whole or in part, in 120
days to a review and acknowledgment period in 60 days, as outlined in
PFC Update 73-20, until the effective date of this final rulemaking.
FAA recognizes these gains in efficiency and faster service time to the
affected airports; however, these benefits, which would continue to
accrue to those airports, are not quantified or monetized. See Table 1
below for a comparison of the NPRM and the SNPRM provisions as well as
the SNPRM economic impacts.
Table 1--Comparison of NPRM and SNPRM Provisions and Their SNPRM Economic Impacts
----------------------------------------------------------------------------------------------------------------
Provision NPRM SNPRM SNPRM economic impact
----------------------------------------------------------------------------------------------------------------
1. PFC turnback reductions. 2024 Not in NPRM.............. Prior to the Act, 49 No impact because it is
Act Section 713. U.S.C. 47114(f) a change in formula to
required medium- and the distribution of
large-hub airports Airport Improvement
collecting at a PFC Program (AIP) funding.
level of $3 or less to No new money is being
return 50 percent of added or taken from the
their Airport AIP program.
Improvement Program
(AIP) apportioned
funds. Airports
collecting at a PFC
level greater than $3
were required to return
75 percent of their AIP
apportioned funds. The
2024 Act decreased
these percentages from
50 percent for medium-
and large-hub airports
collecting at a level
of $3 or less and 75
percent for medium- and
large-hub airports
collecting at a PFC
level greater than $3
to 40 percent and 60
percent, respectively.
The 2024 Act also
created a new criterion
to determine when a
small-hub,
transitioning to a
medium- or large-hub
airport, qualifies for
a turnback against the
airport's
apportionment. Now, an
airport must be
designated as a medium-
or large-hub airport
for three consecutive
years before a turnback
can be applied.
[[Page 69517]]
2. Two new PFC Eligible Projects. Not in NPRM.............. The 2024 Act added two No additional cost to
2024 Act Section 775. new types of projects FAA or stakeholders.
FAA should consider as The 2024 Act made
eligible airport- eligible two new types
related projects. of projects for which
public agencies may
request PFC funding.
3. Restrictions to PFC Eligible Not in NPRM.............. The 2024 Act amended 49 No additional cost to
Projects. 2024 Act Section 782. U.S.C. 47139 by FAA or stakeholders.
removing the The 2024 Act removed
requirement that a requirements on this
project must be located project type, allowing
in an air quality more projects of this
nonattainment area or a type to be eligible.
maintenance area.
4. FAA's timeline for review and Small-, medium-, and Prior to the 2018 Act, Cumulative Effect on non-
acknowledgement of Notices of large-hub airports are only non-hub airports hub airports (2018 to
Intent submissions. 2024 Act now eligible to submit were eligible to submit present): because non-
Section 776. NOIs. Specifically, NOIs to FAA for review hub airports would
these airports would in 30 days and FAA to continue using existing
continue to use the issue a determination. forms for NOI
streamlined application The 2018 Act expanded submissions, FAA
process (in PFC Update eligibility to include expects no change in
73-20), shortening FAA's all eligible airports workload to fill them
review period for to submit notices of out.
projects from 120 days intent and that In terms of FAA review
to 30 days until the provision was in the of NOIs that may take
effective date of the NPRM. 30 days longer to
final rule. Non-hub In SNPRM: The 2024 Act, review them, FAA finds
airports were already changed FAA's review of that it has a
receiving 30 days review NOI period from 30 days negligible impact. This
of NOIs, and certain to 60 days for all is because FAA does not
projects had to be eligible airports (non- intend to make any
submitted by application. , small-, medium-, and changes to the NOI
large-hub airport). review process.
Specifically, non-hub Therefore, FAA does not
airports that expect the average
previously received 30 review time to
days FAA review of NOIs increase. Most NOIs
to now receiving 60 submitted to FAA by non-
days FAA review.. hub airports are
The 2024 Act changed processed well under 30
FAA's review of NOIs days.
from 30 days to 60 However, if a complex
days. This change in NOI were submitted, FAA
statute did create a may need to take the
conflict within the additional 30 days.
statute itself where a This would push FAA's
public agency may start determination back 30
collecting PFCs after days and delay the
30 days' notice to FAA. charge on PFC
The SNPRM addressed collection authority at
this by explaining that that airport by 30
this is a procedural days. However, FAA does
burden for both public not see this as an
agencies and FAA. issue. Of the 193 non-
Therefore, the SNPRM hub airports collecting
explains that public PFCs, 188 of these
agencies may collect airports have approved
after 60 days' notice, PFC collection
matching FAA's review authority that extends
period.. beyond the next 6
This provision is tied months. This means,
to the PFC Streamlined should FAA need to take
Review Eligibility an additional 30 days
provision.. to review an NOI, most
non-hub airports would
not be at risk of their
PFC collection expiring
before FAA could issue
a determination.
Cumulative Effect on
small-, medium-, and
large-hub airports
(2018 to present): FAA
review of projects from
120 days to 60 days.
Gains in efficiency and
faster service time to
approximately 138 small-
, medium-, and large-
hub airports. These
airports would continue
to use the streamlined
application process (in
PFC Update 73-20),
shortening FAA's review
and acknowledgment
period from 120 days to
60 days until the
effective date of the
final rule.
The shorter review time
period is tied directly
to the increased
eligibility of projects
able to be reviewed
under the PFC
streamlined process.
This is an opportunity
for larger airports to
receive a determination
from FAA more quickly
than would otherwise be
available.
This provision is
directly tied to the
PFC Streamlined Review
Eligibility provision.
[[Page 69518]]
5. PFC Streamlined Review This provision would This provision would This provision is tied
Eligibility. 2024 Act Section benefit approximately benefit approximately to FAA's timeline of
776. 138 small-, medium-, and 138 small-, medium-, review of notices of
large-hub airports. NPRM and large-hub airports. intent (above).
provided criteria for Specifically, these Cumulative Effect on non-
projects to be submitted airports would continue hub airports (2018 to
in the NOI application. to use the streamlined present): Subject to
The 145 airports application process (in project criteria, the
previously did not have PFC Update 73-20) and majority of projects by
this option. For non-hub criteria for projects. non-hub airports before
airports, they were also the 2018 Act and after
subject to the criteria the 2024 Act are not
but highly unlikely to controversial projects
submit a project that that used the NOI
would not warrant a NOI process. The allowed
submission. objections section
found in 49 U.S.C.
40117(1)(4)(C), which
was added by the 2024
Act, will not trigger
more or less NOIs being
submitted by non-hub
airports.
Cumulative Effect on
small-, medium-, and
large-hub airports
(2018 to present): FAA
review of projects from
120 days to 60 days,
and change in project
criteria.
6. PFC Submittal Requirements. Not in NPRM.............. FAA proposes that public No change or impact to
2024 Act Section 743. agencies submit a stakeholders. FAA
physical project maintains requiring the
description and a description and a
drawing depicting the drawing depicting the
location of the location of a proposed
proposed project for project to make a
projects that are not determination on its
required to be shown on eligibility.
an FAA-approved ALP,
per section 743 of the
Act.
----------------------------------------------------------------------------------------------------------------
5. Regulatory Alternatives
This rulemaking proposes amendments to the PFC regulations to
address statutorily mandated program changes, program oversight
improvements, and minor administrative changes, such as removing or
correcting obsolete references.
As noted above, FAA is proposing to align the time period in which
a public agency may impose a PFC with the time FAA has to complete
review of the NOI. FAA believes that such an approach not taken would
likely lead to administrative and procedural costs for potential
refunds that are likely to outweigh the benefits of public agencies
being able to impose fees a few weeks earlier than under the proposed
rule. FAA requests comment on this proposal and whether imposing a
consistent 60-day timeframe for both FAA objection and the
authorization to begin collecting PFCs would lead to costs not
considered here. There are no other legally supportable regulatory
alternatives to implementing the statutory requirements for the
proposed changes. The alternative to rulemaking would be to leave the
existing system of FAA orders, guidance, and policy documents in place.
However, this is untenable long-term, as such decentralized program
requirements and guidance hinder FAA's ability to ensure compliance and
transparency. Further, this approach would leave PFC program
regulations in place that are not aligned with the 2024 Act, creating
potential regulatory ambiguity and inconsistency.
B. Regulatory Flexibility Determination
The Regulatory Flexibility Act (RFA) of 1980,\29\ as amended by the
Small Business Regulatory Enforcement Fairness Act of 1996 \30\ and the
Small Business Jobs Act of 2010,\31\ requires Federal agencies to
consider the effects of the regulatory action on small businesses and
other small entities and to minimize any significant economic impact.
The term ``small entities'' comprises small businesses and not-for-
profit organizations that are independently owned and operated and are
not dominant in their fields, and governmental jurisdictions with
populations of less than 50,000.
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\29\ Public Law 96-354, 94 Stat. 1164, 5 U.S.C. 601-612.
\30\ Public Law 104-121, 110 Stat. 857, Mar. 29, 1996.
\31\ Public Law 111-240, 124 Stat. 2504 Sept. 27, 2010.
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FAA identified approximately 138 airports that are owned and
operated by both small and non-small entities. In order to estimate the
number of small entities, FAA used the Table of Size Standards \32\
issued by the Small Business Administration (SBA) for the North
American Industry Classification System (NAICS) and found two NAICS
codes that these airports would fall under: 488111 (Air Traffic
Control) and 488119 (Other Airport Operations). SBA's size standards
generally define small businesses based on the number of employees or
annual receipts. For these two NAICS codes, the size standard is
established as $35 million (i.e., entities with annual receipts under
$35 million are qualified as small businesses).
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\32\ Small Business Administration (SBA), Table of Size
Standards. Effective July 14, 2022, available at: <a href="http://www.sba.gov/document/support-table-size-standards">www.sba.gov/document/support-table-size-standards</a>.
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Using the U.S. Census data for 488111 and 488119 NAICS codes,\33\
FAA estimated that, except for 13 airports reporting over $35 million
annual revenue, the remaining 125 airports are classified as small
entities.
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\33\ <a href="http://www.data.census.gov/cedsci/table?q=488119&g=010000CBP">www.data.census.gov/cedsci/table?q=488119&g=010000CBP</a> Last
accessed November 3, 2022. 000US&n=488111&tid=CBP2020.CB2000CBP.
Last accessed November 3, 2022.
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FAA did not identify any economic impacts on small entities that
would be affected by the SNPRM. Therefore, FAA proposes to certify that
the SNPRM will not have a significant economic impact on a substantial
number of small entities. FAA welcomes comments on the basis for this
certification.
C. International Trade Impact Assessment
The Trade Agreements Act of 1979 (Pub. L. 96-39), as amended by the
Uruguay Round Agreements Act (Pub.
[[Page 69519]]
L. 103-465), prohibits Federal agencies from establishing standards or
engaging in related activities that create unnecessary obstacles to the
foreign commerce of the United States. Pursuant to these Acts, the
establishment of standards is not considered an unnecessary obstacle to
the foreign commerce of the United States, so long as the standard has
a legitimate domestic objective, such as the protection of safety, and
does not operate in a manner that excludes imports that meet this
objective. The statute also requires consideration of international
standards and, where appropriate, that they be the basis for U.S.
standards. FAA has assessed the effect of this SNPRM and determined
that its purpose is to ensure the safety of U.S. civil aviation.
Therefore, this SNPRM is in compliance with the Trade Agreements Act.
D. Unfunded Mandates Assessment
The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538)
governs the issuance of Federal regulations that require unfunded
mandates. An unfunded mandate is a regulation that requires a State,
local, or Tribal government or the private sector to incur direct costs
without the Federal Government having first provided the funds to pay
those costs. FAA determined that the proposed rule would not result in
the expenditure of $193,000,000 or more ($100,000,000 adjusted for
inflation using the most current Implicit Price Deflator for the Gross
Domestic Product) by State, local, or Tribal governments, in the
aggregate, or the private sector, in any one year.
E. Paperwork Reduction Act
The Paperwork Reduction Act of 1995 \34\ requires that FAA consider
the impact of paperwork and other information collection burdens
imposed on the public. According to the 1995 amendments to the
Paperwork Reduction Act,\35\ an agency may not collect or sponsor the
collection of information, nor may it impose an information collection
requirement unless it displays a currently valid Office of Management
and Budget (OMB) control number.
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\34\ 44 U.S.C. 3507(d).
\35\ 5 CFR 1320.8(b)(2)(vi).
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FAA has determined that there would be no new information
collection associated with this SNPRM. The Office of Management and
Budget (OMB) previously approved FAA to collect such information under
the provisions of the Paperwork Reduction Act of 1995 \36\ via OMB
Control Number 2120-0557. As provided in agency guidance regarding 14
CFR 158.25(b)(6), there should be a detailed description of the
project, sufficient so a person not familiar with the airport can
understand the project. A sketch of the location of the work should be
done, if necessary.
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\36\ 44 U.S.C. 3507(d).
---------------------------------------------------------------------------
On November 22, 2021, OMB approved a revision of FAA's previously
approved information collection. That revision reflected changes in the
estimated burden resulting from the 2018 Act and FAA's implementation
of PFC Update 73-20. Although this rulemaking proposes to codify these
changes into the regulations, there are no new information collection
actions resulting directly from this rulemaking action.
F. International Compatibility
In keeping with U.S. obligations under the Convention on
International Civil Aviation, it is FAA policy to conform to
International Civil Aviation Organization (ICAO) Standards and
Recommended Practices to the maximum extent practicable. FAA has
determined that there are no ICAO Standards and Recommended Practices
that correspond to these proposed regulations.
G. Environmental Analysis
The Department has analyzed the environmental impacts of this SNPRM
pursuant to the National Environmental Policy Act of 1969 (NEPA) (42
U.S.C. 4321, et seq.). FAA has determined that this rule is
categorically excluded pursuant to FAA Order 1050.1G. Categorical
exclusions are categories of actions that the agency has determined
normally do not significantly affect the quality of the human
environment and therefore do not require either an environmental
assessment (EA) or environmental impact statement (EIS). See DOT Order
5610.1D Sec. 9. In analyzing the applicability of a categorical
exclusion, the agency must also consider whether extraordinary
circumstances are present that would warrant the preparation of an EA
or EIS. Id. Sec. 9(b). This rulemaking, which proposes to amend
portions of 14 CFR part 158, is categorically excluded pursuant to
appendix B-2.6(f) of FAA Order 1050.1G: ``Regulations, standards, and
exemptions (excluding those that if implemented may cause a significant
impact on the human environment).'' FAA does not anticipate any
environmental impacts, and there are no extraordinary circumstances
present in connection with this rulemaking.
VI. Executive Order Determinations
A. Executive Order 13132, Federalism
FAA has analyzed this proposed rule under the principles and
criteria of E.O. 13132, Federalism. FAA has determined that this action
would not have a substantial direct effect on the States, or the
relationship between the Federal Government and the States, or on the
distribution of power and responsibilities among the various levels of
government, and, therefore, would not have federalism implications.
B. Executive Order 13175, Consultation and Coordination With Indian
Tribal Governments
Consistent with E.O. 13175, Consultation and Coordination with
Indian Tribal Governments,\37\ and FAA Order 1210.20, American Indian
and Alaska Native Tribal Consultation Policy and Procedures,\38\ FAA
ensures that Federally Recognized Tribes (Tribes) are given the
opportunity to provide meaningful and timely input regarding proposed
Federal actions that have the potential to affect uniquely or
significantly their respective Tribes. At this point, FAA has not
identified any unique or significant effects, environmental or
otherwise, on tribes resulting from this proposed rule.
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\37\ 65 FR 67249 (Nov.6, 2000).
\38\ FAA Order No. 1210.20 (Jan. 28, 2004), available at <a href="http://www.faa.gov/documentLibrary/media/1210.pdf">http://www.faa.gov/documentLibrary/media/1210.pdf</a>.
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C. Executive Order 13211, Regulations That Significantly Affect Energy
Supply, Distribution, or Use
FAA analyzed this proposed rule under E.O. 13211, Actions
Concerning Regulations that Significantly Affect Energy Supply,
Distribution, or Use (May 18, 2001). FAA has determined that it would
not be a ``significant energy action'' under the executive order and
would not be likely to have a significant adverse effect on the supply,
distribution, or use of energy.
D. Executive Order 13609, Promoting International Regulatory
Cooperation
E.O. 13609, Promoting International Regulatory Cooperation,
promotes international regulatory cooperation to meet shared challenges
involving health, safety, labor, security, environmental, and other
issues and to reduce, eliminate, or prevent unnecessary differences in
regulatory requirements. FAA has analyzed this action under the
policies and agency responsibilities of E.O. 13609 and has determined
that this action would have no effect on international regulatory
cooperation.
[[Page 69520]]
VII. Additional Information
A. Comments Invited
FAA invites interested persons to participate in this rulemaking by
submitting written comments, data, or views. FAA also invites comments
relating to the economic, environmental, energy, or federalism impacts
that might result from adopting the proposals in this document. The
most helpful comments reference a specific portion of the proposal,
explain the reason for any recommended change, and include supporting
data. To ensure the docket does not contain duplicate comments,
commenters should submit only one time if comments are filed
electronically, or commenters should send only one copy of written
comments if comments are filed in writing.
FAA will file in the docket all comments it receives, as well as a
report summarizing each substantive public contact with FAA personnel
concerning this proposed rulemaking. Before acting on this proposal,
FAA will consider all comments it receives on or before the closing
date for comments. FAA will consider comments filed after the comment
period has closed if it is possible to do so without incurring expense
or delay. FAA may change this proposal in light of the comments it
receives.
B. Confidential Business Information
Confidential Business Information (CBI) is commercial or financial
information that is both customarily and actually treated as private by
its owner. Under the Freedom of Information Act (FOIA) (5 U.S.C. 552),
CBI is exempt from public disclosure. If your comments responsive to
this SNPRM contain commercial or financial information that is
customarily treated as private, that you actually treat as private, and
that is relevant or responsive to this SNPRM, it is important that you
clearly designate the submitted comments as CBI. Please mark each page
of your submission containing CBI as ``PROPIN.'' FAA will treat such
marked submissions as confidential under the FOIA, and they will not be
placed in the public docket of this SNPRM. Submissions containing CBI
should be sent to the person in the FOR FURTHER INFORMATION CONTACT
section of this document. Any commentary that FAA receives that is not
specifically designated as CBI will be placed in the public docket for
this rulemaking.
C. Electronic Access and Filing
A copy of the NPRM, this SNPRM, all comments received, any final
rule, and all background material may be viewed online at <a href="https://www.regulations.gov">https://www.regulations.gov</a> using the docket number listed above. A copy of
this proposed rule will be placed in the docket. Electronic retrieval
help and guidelines are available on the website. It is available 24
hours each day, 365 days each year. An electronic copy of this document
may also be downloaded from the Office of the Federal Register's
website at <a href="https://www.federalregister.gov">https://www.federalregister.gov</a> and the Government
Publishing Office's website at <a href="https://www.govinfo.gov">https://www.govinfo.gov</a>. A copy may also
be found at FAA's Regulations and Policies website at <a href="https://www.faa.gov/regulations_policies">https://www.faa.gov/regulations_policies</a>.
Copies may also be obtained by sending a request to the Federal
Aviation Administration, Office of Rulemaking, ARM-1, 800 Independence
Avenue SW, Washington, DC 20591, or by calling (202) 267-9677.
Commenters must identify the docket or notice number of this
rulemaking.
All documents FAA considered in developing this proposed rule,
including economic analyses and technical reports, may be accessed in
the electronic docket for this rulemaking.
D. Small Business Regulatory Enforcement Fairness Act
The Small Business Regulatory Enforcement Fairness Act (SBREFA) of
1996 requires FAA to comply with small entity requests for information
or advice about compliance with statutes and regulations within its
jurisdiction. A small entity with questions regarding this document may
contact its local FAA official or the person listed under the FOR
FURTHER INFORMATION CONTACT heading at the beginning of the preamble.
To find out more about SBREFA on the internet, visit <a href="https://www.faa.gov/regulations_policies/rulemaking/sbre_act/">https://www.faa.gov/regulations_policies/rulemaking/sbre_act/</a>.
List of Subjects in 14 CFR Part 158
Air carriers, Airports, Passenger facility charge, Public agencies,
Reporting and recordkeeping requirements.
The Proposed Amendment
For the reasons discussed in the preamble, the Federal Aviation
Administration proposes to amend chapter I of title 14, Code of Federal
Regulations. The proposed amendments include only those proposed in
this SNPRM and do not account for the proposals originally put forth in
the related NPRM. Upon resolution of public comments on this proposal,
the Federal Aviation Administration will combine unaltered proposals
established in the NPRM and the SNRPM in a final rule. The proposed
amendments are as follows:
PART 158--PASSENGER FACILITY CHARGES (PFCS)
0
1. The authority citation for part 158 is revised to read as follows:
Authority: 49 U.S.C. 106(f), 40116-40117, 47106, 47111, 47114-
47116, 47524, 47526.
0
2. Amend Sec. 158.3 by inserting definition for ``No aeronautical
purpose'' to read as follows:
Sec. 158.3 Definitions.
* * * * *
No aeronautical purpose, in this part, means any project located on
the airport that is not directly related to the safe and efficient
operation of aircraft, nor directly related to the movement of
passengers and baggage.
* * * * *
0
3. Amend Sec. 158.15 by revising paragraph (b)(8) and adding
paragraphs (b)(9), (b)(10), and (b)(11) to read as follows:
Sec. 158.15 Project eligibility.
* * * * *
(b) * * *
(8) Converting vehicles eligible under Sec. 158.15(b)(1) and
ground support equipment powered by a diesel or gasoline engine used at
a commercial service airport to low-emission technology certified or
verified by the Environmental Protection Agency to reduce emissions or
to use cleaner burning conventional fuels;
(9) Acquiring for use at a commercial service airport, vehicles
eligible under Sec. 158.15(b)(1) and, subject to Sec. 158.13(c),
ground support equipment that includes low-emission technology or use
cleaner burning fuels;
(10) A project at a small hub airport for a noise barrier where the
day-night average sound level from commercial, general aviation, or
cargo operations is expected to exceed 55 decibels as a result of new
airport development; or
(11) A project for the replacement of existing workspace elements
(including any associated in-kind facility or equipment within or
immediately adjacent to a terminal development or renovation project at
such airport) related to the relocation of a Federal agency on airport
grounds due to such terminal development or renovation project for
which development costs are eligible costs under this section.
* * * * *
[[Page 69521]]
Subpart B--Applications and Notices of Intent
* * * * *
0
4. Revise Sec. 158.21 to read as follows:
Sec. 158.21 General.
A public agency may submit an application and obtain approval from
the Administrator to impose a PFC and use PFC revenue, or a public
agency may file a notice of intent. This subpart specifies the
consultation, notice, and public comment, application, and notice of
intent requirements under which a public agency may obtain approval or
acknowledgment to impose a PFC and use PFC revenue on a project. This
subpart also establishes the procedures for the Administrator's review
and approval of applications and amendments, procedures for FAA's
acknowledgment of notices of intent, and requirements for use of excess
PFC revenue.
0
5. Amend Sec. 158.25 by revising (c)(1)(i), (c)(1)(ii), and (c)(2)(iv)
to read as follows:
Sec. 158.25 Applications.
* * * * *
(c) * * *
(1) * * *
(i) The information required under paragraphs (b)(1) through (18)
of this section;
(ii) * * *
(A) For projects required to be shown on an ALP and requiring FAA
review and approval, the ALP depicting the project has been approved by
FAA and the date of such approval;
(B) For projects required to be shown on an ALP but not requiring
FAA review and approval, a physical description of the project and a
drawing depicting the location of the project;
(C) All environmental reviews required by the National
Environmental Policy Act (NEPA) of 1969 have been completed, and a copy
of the final FAA environmental determination with respect to the
project has been approved, and the date of such approval, if such
determination is required; and
(D) The final FAA airspace determination with respect to the
project has been completed, and the date of such determination, if an
airspace study is required. * * *
(2) * * *
(iv) * * *
(A) For projects required to be shown on an ALP and requiring FAA
review and approval, the ALP depicting the project has been approved by
FAA and the date of such approval;
(B) For projects required to be shown on an ALP but not requiring
FAA review and approval, a physical description of the project and a
drawing depicting the location of the project;
(C) All environmental reviews required by the National
Environmental Policy Act (NEPA) of 1969 have been completed, and a copy
of the final FAA environmental determination with respect to the
project has been approved, and the date of such approval, if such
determination is required; and
(D) The final FAA airspace determination with respect to the
project has been completed, and the date of such determination, if an
airspace study is required; and
* * * * *
0
6. Amend Sec. 158.30 by:
0
a. Revising paragraph (c)(1)(ii); and
0
b. Adding paragraphs (c)(1)(ii)(A) through (D).
The revisions and addition read as follows:
Sec. 158.30 Notices of intent.
* * * * *
(c) * * *
(1) * * *
(ii) All applicable requirements for all projects not included in
an existing Federal airport program grant:
(A) For projects required to be shown on an ALP and requiring FAA
review and approval, the ALP depicting the project has been approved by
FAA and the date of such approval;
(B) For projects required to be shown on an ALP but not requiring
FAA review and approval: a physical description of the project and a
drawing depicting the location of the project;
(C) All environmental reviews required by the National
Environmental Policy Act (NEPA) of 1969 have been completed and the
date of such approval, if such determination is required; and
(D) The final FAA airspace determination with respect to the
project has been completed, and the date of such determination, if an
airspace study is required.
* * * * *
0
7. Amend Sec. 158.31 by adding paragraphs (a)(1) and (a)(2) to read as
follows:
Sec. 158.31 Review of notices of intent.
(a) * * *
(1) A project is ineligible for notice of intent procedures if it:
(i) Establishes significant policy precedent.
(ii) Raises significant legal issues.
(iii) Garners significant controversy, as evidenced by significant
opposition to the proposed action by the applicant or other airport
authorities, airport users, governmental agencies, elected officials,
or communities.
(iv) Raises significant revenue diversion, airport noise, or access
issues, including compliance with section 47111(e) or subchapter II of
chapter 475.
(v) Includes multimodal components.
(vi) Serves no aeronautical purpose.
(2) FAA must allow a project to follow the notice of intent
procedures if it:
(i) is an eligible airport-related project;
(ii) received an FAA-awarded airport grant; and
(iii) the total PFCs collected do not exceed the total cost of the
project.
* * * * *
0
8. Add Sec. 158.32 to read as follows:
Sec. 158.32 FAA acknowledgment of notices of intent.
(a) Within 60 days of receipt of the public agency's notice of
intent about its PFC program, FAA will issue a written acknowledgment
of the public agency's notice. FAA's acknowledgment may concur with all
proposed projects, may object to some or all proposed projects, or may
object to the notice of intent in its entirety. FAA's acknowledgment
will include the reason(s) for any objection.
* * * * *
0
9. Amend Sec. 158.93 by revising paragraph (a) to read as follows:
Sec. 158.93 Public agencies subject to reduction.
* * * * *
(a) Such airport is designated a medium or large hub, and
* * * * *
0
10. Revise Sec. 158.95 to read as follows:
Sec. 158.95 Implementation of reduction.
(a) A reduction in apportioned funds:
(1) Will not take effect until the first fiscal year following the
year in which the collection of the PFC is begun and will be applied in
each succeeding fiscal year in which the public agency imposes the PFC,
and
(2) Will only be applied to an airport if such airport has been
designated as a medium or large hub airport for three consecutive
years.
(b) The reduction in apportioned funds is calculated at the
beginning of each fiscal year and shall be an amount equal to--
(1) In the case of a fee of $3 or less, 40 percent of the projected
revenues from the fee in the fiscal year but not by more than 40
percent of the amount that otherwise would be apportioned under this
section; or
(2) In the case of a fee of more than $3, 60 percent of the
projected revenues from the fee in the fiscal year but not by
[[Page 69522]]
more than 60 percent of the amount that otherwise would be apportioned
under this section.
(c) If the projection of PFC revenue in a fiscal year is
inaccurate, the reduction in apportioned funds may be increased or
decreased in the following fiscal year, except that any further
reduction shall not cause the total reduction to exceed either 40
percent or 60 percent of such apportioned amount as would otherwise be
apportioned in any fiscal year.
Issued under authority provided by 49 U.S.C. 106(f), 44701(a),
and 44703 in Washington, DC.
Christopher S. Kelly,
Associate Administrator for Airports.
[FR Doc. 2026-22450 Filed 11-3-26; 8:45 am]
BILLING CODE 4910-13-P
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