Regulatory Alert: FAA Releases Updated BIL Implementation Guidance; FY23 ATP Grant Application Deadline on October 24
October 19, 2022
On October 18, the Federal Aviation Administration (FAA) released an updated frequently asked questions (FAQ) document that provides information for airport sponsors on the $20 billion that FAA is administering over five years for airport infrastructure improvements under the Infrastructure and Investment and Jobs Act (IIJA), popularly known as the Bipartisan Infrastructure Law (BIL). The updated document provides additional details regarding the ability for airports to be reimbursed for costs previously incurred under each of the BIL programs and how noncompliance with grant assurances may affect eligibility for grants under the Airport Infrastructure Grant (AIG) Program.
Originally released in March, the FAQs cover a wide range of questions regarding the AIG Program, which provides $15 billion ($3 billion annually) via formula grants to airports; the Airport Terminal Program (ATP), which provides $5 billion ($1 billion annually) to airports via discretionary, competitive grants for eligible terminal projects; and the FAA Contract Tower (FCT) Competitive Grant Program, which provides $100 million ($20 million annually) via discretionary, competitive grants for airports that own an FCT air traffic control tower.
You can view the updated FAQ guidance for FAA BIL funding here. AAAE has prepared this version of the updated document that highlights changes or additions that were made to the second iteration released in May. A review of some of the changes are discussed further below. In addition, as highlighted in our September 23 Regulatory Alert, we wanted to briefly remind members that the deadline for airports to apply for a fiscal year 2023 (FY23) ATP grant is Monday, October 24, at 5 p.m. ET.
Updated FAQ Guidance on BIL Implementation
Reimbursement of Costs Previously Incurred. The updated FAQ guidance provides additional details regarding the ability for airports to be reimbursed for costs previously incurred under each of the BIL programs that apply to airports.
Q-U24: Can BIL funds be used to reimburse costs previously incurred?
A: For all AIG Allocated funds and funds awarded under the FY 2022 ATP NOFO and the FY 2022 FAA Contract Tower (FCT) Competitive Grant Program NOFO, FAA will reimburse sponsors for eligible project related costs incurred on or after November 15, 2021, which is the date of enactment of BIL, as long as all Federal funding procurement requirements and FAA design and construction standards, are met (see the AIP Handbook).
After further legal review, the FY 2023 and future ATP, FCT Competitive, and other BIL related NOFOs will be adjusted to further ensure consistency with other DOT grant programs. Project formulation costs (airport development), incurred after November 15, 2021, are reimbursable. The specific costs eligible for reimbursement are outlined under 49 U.S.C. 47110(c), and further described in Table 3-60 of the AIP Handbook. All other costs must be incurred after grant execution.
The updated FAQ is consistent with language that FAA included in the notice of funding opportunity (NOFO) for FY23 ATP grants, which was released in September and provided: “All project costs must be incurred after the grant execution date unless specifically permitted under 49 U.S.C. 47110(c). Certain airport development costs incurred before execution of the grant agreement, but after November 15, 2021, are allowable, only if certain conditions under 49 U.S.C. 47110(c) are met [see Table 3-60 of the AIP Handbook, FAA Order 5100.38 D Change 1, for a specific list of the guidance regarding when project costs can be incurred in relation to section 47110(c)].“
Airport Eligibility for AIG Program. FAA clarified how pending noncompliance or noncompliance with federal grant obligations may or may not affect an airport's eligibility for grants under the AIG Program.
Q-U72: If a sponsor has been put in pending noncompliance or noncompliance with AIP grant assurances are they eligible to receive AIG Allocations?
A: All eligible airports will receive an AIG allocation. Sponsors with a Part 16 non-compliance finding by a Director's Determination, Final Agency Decision, or Hearing will not receive an AIG Allocated grant until the compliance finding is resolved. All other sponsors, including those with a Part 13 noncompliance finding, can receive an AIG Allocated grant. However, grants issued to a sponsor with a Part 13 noncompliance finding must contain a special condition requiring Agency approval of a Corrective Action Plan before the sponsor can drawdown funds.
Reminder: Deadlines and BIL Implementation Timeline
AAAE continues to work closely with our federal partners on BIL implementation. Over the past week, FAA has continued to publicize, through social media and emails, a reminder about the upcoming deadline for airports to apply for FY23 ATP grants. We wanted to share a friendly reminder about key dates that airports should be aware of:
• FY23 ATP Grants: On September 23, FAA released a NOFO that outlines how airports can apply for a share of approximately $1 billion in FY23 discretionary funds under the ATP. Please refer to our September 23 Regulatory Alert for additional details or you can review the FY23 ATP NOFO here. The deadline for eligible airports to apply for an FY23 ATP grant is Monday, October 24 at 5 p.m. ET. 
• FY23 AIG Allocations: Within the next month, FAA is expected to announce approximately $3 billion in FY23 AIG allocations for eligible airports. Airports would then be permitted to work with their Airport District Office or Regional Office to apply to use FY23 AIG allocated funds for specific projects. 
• FY23 FTC Competitive Grants: Based on discussions with the agency, we understand that FAA is hoping to release the NOFO for FY23 FTC Competitive Grants within the next one to two months. 
AAAE has developed a one-page overview of the various grant programs and funds being administered by FAA, including relevant timelines, to help airports navigate the opportunities available for infrastructure funding.
On October 18, the Federal Aviation Administration (FAA) released an updated frequently asked questions (FAQ) document that provides information for airport sponsors on the $20 billion that FAA is administering over five years for airport infrastructure improvements under the Infrastructure and Investment and Jobs Act (IIJA), popularly known as the Bipartisan Infrastructure Law (BIL). The updated document provides additional details regarding the ability for airports to be reimbursed for costs previously incurred under each of the BIL programs and how noncompliance with grant assurances may affect eligibility for grants under the Airport Infrastructure Grant (AIG) Program.
Originally released in March, the FAQs cover a wide range of questions regarding the AIG Program, which provides $15 billion ($3 billion annually) via formula grants to airports; the Airport Terminal Program (ATP), which provides $5 billion ($1 billion annually) to airports via discretionary, competitive grants for eligible terminal projects; and the FAA Contract Tower (FCT) Competitive Grant Program, which provides $100 million ($20 million annually) via discretionary, competitive grants for airports that own an FCT air traffic control tower.
You can view the updated FAQ guidance for FAA BIL funding here. AAAE has prepared this version of the updated document that highlights changes or additions that were made to the second iteration released in May. A review of some of the changes are discussed further below. In addition, as highlighted in our September 23 Regulatory Alert, we wanted to briefly remind members that the deadline for airports to apply for a fiscal year 2023 (FY23) ATP grant is Monday, October 24, at 5 p.m. ET.
Updated FAQ Guidance on BIL Implementation
Reimbursement of Costs Previously Incurred. The updated FAQ guidance provides additional details regarding the ability for airports to be reimbursed for costs previously incurred under each of the BIL programs that apply to airports.
Q-U24: Can BIL funds be used to reimburse costs previously incurred?
A: For all AIG Allocated funds and funds awarded under the FY 2022 ATP NOFO and the FY 2022 FAA Contract Tower (FCT) Competitive Grant Program NOFO, FAA will reimburse sponsors for eligible project related costs incurred on or after November 15, 2021, which is the date of enactment of BIL, as long as all Federal funding procurement requirements and FAA design and construction standards, are met (see the AIP Handbook).
After further legal review, the FY 2023 and future ATP, FCT Competitive, and other BIL related NOFOs will be adjusted to further ensure consistency with other DOT grant programs. Project formulation costs (airport development), incurred after November 15, 2021, are reimbursable. The specific costs eligible for reimbursement are outlined under 49 U.S.C. 47110(c), and further described in Table 3-60 of the AIP Handbook. All other costs must be incurred after grant execution.
The updated FAQ is consistent with language that FAA included in the notice of funding opportunity (NOFO) for FY23 ATP grants, which was released in September and provided: “All project costs must be incurred after the grant execution date unless specifically permitted under 49 U.S.C. 47110(c). Certain airport development costs incurred before execution of the grant agreement, but after November 15, 2021, are allowable, only if certain conditions under 49 U.S.C. 47110(c) are met [see Table 3-60 of the AIP Handbook, FAA Order 5100.38 D Change 1, for a specific list of the guidance regarding when project costs can be incurred in relation to section 47110(c)].“
Airport Eligibility for AIG Program. FAA clarified how pending noncompliance or noncompliance with federal grant obligations may or may not affect an airport's eligibility for grants under the AIG Program.
Q-U72: If a sponsor has been put in pending noncompliance or noncompliance with AIP grant assurances are they eligible to receive AIG Allocations?
A: All eligible airports will receive an AIG allocation. Sponsors with a Part 16 non-compliance finding by a Director's Determination, Final Agency Decision, or Hearing will not receive an AIG Allocated grant until the compliance finding is resolved. All other sponsors, including those with a Part 13 noncompliance finding, can receive an AIG Allocated grant. However, grants issued to a sponsor with a Part 13 noncompliance finding must contain a special condition requiring Agency approval of a Corrective Action Plan before the sponsor can drawdown funds.
Reminder: Deadlines and BIL Implementation Timeline
AAAE continues to work closely with our federal partners on BIL implementation. Over the past week, FAA has continued to publicize, through social media and emails, a reminder about the upcoming deadline for airports to apply for FY23 ATP grants. We wanted to share a friendly reminder about key dates that airports should be aware of:
• FY23 ATP Grants: On September 23, FAA released a NOFO that outlines how airports can apply for a share of approximately $1 billion in FY23 discretionary funds under the ATP. Please refer to our September 23 Regulatory Alert for additional details or you can review the FY23 ATP NOFO here. The deadline for eligible airports to apply for an FY23 ATP grant is Monday, October 24 at 5 p.m. ET. 
• FY23 AIG Allocations: Within the next month, FAA is expected to announce approximately $3 billion in FY23 AIG allocations for eligible airports. Airports would then be permitted to work with their Airport District Office or Regional Office to apply to use FY23 AIG allocated funds for specific projects. 
• FY23 FTC Competitive Grants: Based on discussions with the agency, we understand that FAA is hoping to release the NOFO for FY23 FTC Competitive Grants within the next one to two months. 
AAAE has developed a one-page overview of the various grant programs and funds being administered by FAA, including relevant timelines, to help airports navigate the opportunities available for infrastructure funding.
