Regulatory Alert: FAA Releases BIL Implementation FAQs for Airports

March 2, 2022

The Federal Aviation Administration (FAA) has released a frequently asked questions (FAQ) document that provides information for airport sponsors on the $20 billion that FAA is administering for airport infrastructure improvements under the Infrastructure and Investment and Jobs Act (IIJA), commonly known as the Bipartisan Infrastructure Law (BIL). The FAQs cover a wide range of questions regarding the Airport Infrastructure Grant (AIG) program, which provides $15 billion via formula grants to airports, and the Airport Terminal Program (ATP), which provides $5 billion to airports via discretionary, competitive grants for eligible terminal projects. 

We would note that the BIL FAQs released by FAA do not include information on how airports can apply for their share of AIG funds. FAA is expected to update the FAQs and provide additional details on the AIG program application process in April or May. For the ATP, FAA has already released a notice of funding opportunity (NOFO) that outlines how airports can apply for a share of the approximately $1 billion in fiscal year 2022 (FY22) discretionary funds. Please see our February 22 Regulatory Alert for additional details. 

You can view the FAQ guidance for FAA BIL funding here. While the document is dated February 24, the FAQs were only posted to FAA's website within the last 24 hours. 

Overview of BIL FAQs. The BIL FAQ document covers a wide range of topics relating to the AIG program and ATP through 70 different questions, including, among other things: 

Details on airport eligibility, federal cost share, and local match requirements for the AIG program and ATP
How funding will be allocated under AIG and ATP for each fiscal year
The timeline for obligating AIG and ATP funds
Whether BIL funds can be used to pay the matching share for AIP grants
Whether BIL funded projects require a Benefit-Cost Analysis (BCA)
Whether multi-year grants can be issued using BIL funds
Whether AIG allocated funds can be transferred between airport sponsors
Whether an airport sponsor with multiple airports receiving AIG allocated funds can transfer funds between airports
The ability for airports to accumulate AIG allocated funds
AIG allocated funds and AIP discretionary funds

Many of these questions and issues have been addressed in webinars and other conversations that FAA and the BIL Implementation Team have hosted dating back to December 2021. However, airport sponsors are still encouraged to review all the FAQs, especially if your airport is intending to apply for an FY22 ATP grant.

Reminder: BIL Implementation Timeline. AAAE is working closely with our federal partners on BIL implementation, ensuring that the Administration is making funds available to airports quickly and with as much flexibility as possible. At this time, these are key dates and milestones that airports should be aware of for BIL implementation: 

Applications for FY22 ATP discretionary funding must be submitted electronically no later than 5 p.m. ET on March 28, 2022. Details on the application process can be found in our February 22 Regulatory Alert and on FAA's BIL website. 

In April or May, FAA is expected to (1) update its implementation guidance for the AIG program, detail the application process, and begin issuing grants for specific projects based on the FY22 airport allocations announced in December 2021; and (2) issue a NOFO on how to apply for a competitive grant from the $20 million that will be made available in FY22 for airports participating in the FAA Contract Tower Program with a sponsor-owned ATC tower. 

FAA is expected to announce FY22 ATP grant awards, or a notice of intent to fund projects, by July 2022.

FAA will be publishing an annual NOFO to announce additional ATP funding available, approximately $1 billion per year, for FY23 through FY26. However, the next NOFO is not expected to be released until the end of 2022 or early 2023.