Regulatory Alert: FAA Provides Update on Implementation of the Bipartisan Infrastructure Law
December 16, 2021
This afternoon, the Federal Aviation Administration (FAA) Office of Airports (ARP) provided a high-level briefing to AAAE and other aviation organizations, including their leadership teams, that covered the airport and aviation provisions from the Infrastructure Investment and Jobs Act (IIJA), referred to as the Bipartisan Infrastructure Law (BIL), and a status update on implementation of the BIL. The briefing followed an announcement this morning from FAA that the agency will award $2.89 billion in grants to 3,075 airports across the country for fiscal year 2022 with funds that have been made available under the BIL and the agency's new Airport Infrastructure Grant program. 
Overview of FAA Briefing. According to FAA, the agency has established an FAA ARP BIL Implementation Team to implement the Airport Infrastructure Grant and Airport Terminal programs. Robin Hunt, who works in FAA ARP's Western Pacific Office, is leading the ARP BIL Implementation Team. Ms. Hunt provided an overview of the grant programs, including how the funds will be allocated or awarded, airport and project eligibility, and local match requirements, among other things. FAA emphasized that the agency has not yet developed guidance, including how airports can apply for and/or access grant funds. 
During the briefing, Shannetta Griffin, Associate Administrator for Airports, discussed the five pillars that will be guiding principles in the forthcoming BIL implementation guidance: equity, labor, regional climate impacts, made in America, and Justice40. The Biden Administration's Justice40 initiative is aimed at ensuring 40 percent of the overall benefits from federal investment in climate and clean energy is provided to disadvantaged communities. Guidance has not been developed yet on how the administration or FAA will implement this initiative.
BIL Implementation Timelines. As airports are aware, the BIL provides an historic investment of $25 billion in new federal spending for airport and air traffic infrastructure over a five-year period, including $15 billion for a new airport infrastructure grant program; $5 billion for an airport terminal competitive grant program; and $5 billion for FAA facilities and equipment. During the briefing today, FAA discussed timelines for implementation and when airports could expect additional actions from the agency in each of these three areas: 
• Airport Infrastructure Grant Program. Under the Airport Infrastructure Grant program, FAA will be providing $15 billion ($3 billion annually) to commercial service and general aviation (GA) airports over a five-year period to support a broad array of projects. Each year $2.89 billion will be allocated via a formula to commercial service and GA airports and a separate $20 million will be provided via discretionary grants to airports participating in the FAA Contract Tower Program with a sponsor-owned air traffic control (ATC) tower. Today FAA announced the first year's allocations (for fiscal year 2022) that will be made available under this program. During the briefing, FAA indicated that implementation guidance—including how airports can apply for and/or access those grant award amounts—will be issued in the early spring 2022 timeframe. Around the same time, FAA also expects to issue a notice of funding opportunity (NOFO) for contract tower airports interested in a discretionary grant from the $20 million per year that has been made available for that program. 
• Airport Terminal Program. Under the Airport Terminal program, FAA will be providing $5 billion ($1 billion annually) to airports via discretionary grants for eligible terminal projects, such as multi-modal terminal development or on-airport rail projects. During the briefing, FAA indicated that they expect to issue a NOFO for this grant program sometime in February 2022. The NOFO is expected to provide more details on how the agency will evaluate proposed projects for funding. While many of these details are still unknown, 'shovel ready' projects are expected to receive more favorable consideration to ensure the funds are put into projects as soon as possible. 
• FAA Facilities and Equipment. Under the BIL, Congress provided FAA with $5 billion ($1 billion annually) to address the physical condition of FAA's ATC facilities, including reducing the sustainment backlog and replacing these facilities. At least $200 million is specifically reserved for airports that participate in the FAA Contract Tower Program to upgrade aging FAA-owned ATC facilities. In year one, FAA is expected to focus on sustainment and prepare for ATC facility replacement. In years two through five, FAA will continue sustainment but focus more on replacement of facilities. Under the BIL, FAA must release a 'spend plan,' including a list of project locations of ATC towers and contract towers that will be funded in fiscal year 2022, no later than mid-February. FAA reaffirmed today that this is the timeframe they are hoping to release additional details about how the funds will be used for fiscal year 2022. 
FAA Briefing for Airport Sponsors. AAAE has been informed that FAA ARP will be providing a high-level briefing on BIL implementation for airport sponsors early next week. Airports should look for a message from FAA ARP tomorrow with details on how to gain access to that briefing. This is expected to be an opportunity for airports to hear directly from the FAA ARP BIL Implementation Team and provide feedback on implementation. 
 
This afternoon, the Federal Aviation Administration (FAA) Office of Airports (ARP) provided a high-level briefing to AAAE and other aviation organizations, including their leadership teams, that covered the airport and aviation provisions from the Infrastructure Investment and Jobs Act (IIJA), referred to as the Bipartisan Infrastructure Law (BIL), and a status update on implementation of the BIL. The briefing followed an announcement this morning from FAA that the agency will award $2.89 billion in grants to 3,075 airports across the country for fiscal year 2022 with funds that have been made available under the BIL and the agency's new Airport Infrastructure Grant program. 
Overview of FAA Briefing. According to FAA, the agency has established an FAA ARP BIL Implementation Team to implement the Airport Infrastructure Grant and Airport Terminal programs. Robin Hunt, who works in FAA ARP's Western Pacific Office, is leading the ARP BIL Implementation Team. Ms. Hunt provided an overview of the grant programs, including how the funds will be allocated or awarded, airport and project eligibility, and local match requirements, among other things. FAA emphasized that the agency has not yet developed guidance, including how airports can apply for and/or access grant funds. 
During the briefing, Shannetta Griffin, Associate Administrator for Airports, discussed the five pillars that will be guiding principles in the forthcoming BIL implementation guidance: equity, labor, regional climate impacts, made in America, and Justice40. The Biden Administration's Justice40 initiative is aimed at ensuring 40 percent of the overall benefits from federal investment in climate and clean energy is provided to disadvantaged communities. Guidance has not been developed yet on how the administration or FAA will implement this initiative.
BIL Implementation Timelines. As airports are aware, the BIL provides an historic investment of $25 billion in new federal spending for airport and air traffic infrastructure over a five-year period, including $15 billion for a new airport infrastructure grant program; $5 billion for an airport terminal competitive grant program; and $5 billion for FAA facilities and equipment. During the briefing today, FAA discussed timelines for implementation and when airports could expect additional actions from the agency in each of these three areas: 
• Airport Infrastructure Grant Program. Under the Airport Infrastructure Grant program, FAA will be providing $15 billion ($3 billion annually) to commercial service and general aviation (GA) airports over a five-year period to support a broad array of projects. Each year $2.89 billion will be allocated via a formula to commercial service and GA airports and a separate $20 million will be provided via discretionary grants to airports participating in the FAA Contract Tower Program with a sponsor-owned air traffic control (ATC) tower. Today FAA announced the first year's allocations (for fiscal year 2022) that will be made available under this program. During the briefing, FAA indicated that implementation guidance—including how airports can apply for and/or access those grant award amounts—will be issued in the early spring 2022 timeframe. Around the same time, FAA also expects to issue a notice of funding opportunity (NOFO) for contract tower airports interested in a discretionary grant from the $20 million per year that has been made available for that program. 
• Airport Terminal Program. Under the Airport Terminal program, FAA will be providing $5 billion ($1 billion annually) to airports via discretionary grants for eligible terminal projects, such as multi-modal terminal development or on-airport rail projects. During the briefing, FAA indicated that they expect to issue a NOFO for this grant program sometime in February 2022. The NOFO is expected to provide more details on how the agency will evaluate proposed projects for funding. While many of these details are still unknown, 'shovel ready' projects are expected to receive more favorable consideration to ensure the funds are put into projects as soon as possible. 
• FAA Facilities and Equipment. Under the BIL, Congress provided FAA with $5 billion ($1 billion annually) to address the physical condition of FAA's ATC facilities, including reducing the sustainment backlog and replacing these facilities. At least $200 million is specifically reserved for airports that participate in the FAA Contract Tower Program to upgrade aging FAA-owned ATC facilities. In year one, FAA is expected to focus on sustainment and prepare for ATC facility replacement. In years two through five, FAA will continue sustainment but focus more on replacement of facilities. Under the BIL, FAA must release a 'spend plan,' including a list of project locations of ATC towers and contract towers that will be funded in fiscal year 2022, no later than mid-February. FAA reaffirmed today that this is the timeframe they are hoping to release additional details about how the funds will be used for fiscal year 2022. 
FAA Briefing for Airport Sponsors. AAAE has been informed that FAA ARP will be providing a high-level briefing on BIL implementation for airport sponsors early next week. Airports should look for a message from FAA ARP tomorrow with details on how to gain access to that briefing. This is expected to be an opportunity for airports to hear directly from the FAA ARP BIL Implementation Team and provide feedback on implementation. 
 
