tRegulatory Alert: FAA Releases Updated BIL Implementation Guidance for Airports
May 16, 2022
The Federal Aviation Administration (FAA) released on May 16 an updated 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), popularly known as the Bipartisan Infrastructure Law (BIL), over the next five years. 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. 
The updated FAQ guidance provides additional details for airports on how to apply for and use their share of AIG funds; addresses whether some specific types of projects are eligible under BIL (e.g., revenue producing aeronautical support facilities); briefly discusses new Build America, Buy America Act requirements; and adds a new section for State Block Grant Program questions.
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 first iteration released in early March. A brief review of some of the changes are discussed further below. While the document is dated May 13, the FAQs were posted to FAA's website this morning. 
Updated FAQ Guidance on BIL Implementation
BIL Application Process. The updated FAQ document includes information about the application process for AIG grants, FAA Contract Tower (FCT) Competitive Grant Program grants (AIG Competitive), and ATP grants. Airports are encouraged to work with their Airport District Office or Regional Office to apply to use FY22 AIG allocated funds for specific projects. The application process is similar to how airports apply for Airport Improvement Program (AIP) entitlement grants. 
Q-A1: How does an airport apply for a BIL grant?
A: AIG Allocated: Follow AIP process including projects in the CIP, submittal of the SF-424, Application for Federal Assistance and other documents as required by FAA Airports Standard Operating Procedure (SOP) 6.00 and the local ADO or RO. 
AIG Competitive: For projects selected through the competitive process under the annual NOFO, follow AIP process including projects in the CIP, submittal of the SF-424, Application for Federal Assistance and other documents as required by FAA Airports SOP 6.00 and the local ADO or RO. 
ATP: For projects selected through the competitive process under the annual NOFO, follow AIP process including projects in the CIP, submittal of the SF-424, Application for Federal Assistance and other documents as required by FAA Airports SOP 6.00 and the local ADO or RO. 
Build America, Buy America (BABA) Act Requirements. Under FAA's long-standing Buy America statute, all steel and manufactured goods used in AIP funded projects must be produced in the United States. Under BIL, Congress expanded these requirements to ensure that “all construction materials“ are manufactured in the United States. However, to date, no meaningful guidance has been released by the Administration or FAA on how airports are expected to comply with the new requirements. This is further supported by the FAQ on this topic released on May 16. 
Q-U61: What is the Build America, Buy America (BABA) Act?
A: Buy American requirements under 49 U.S.C. 50101, Build America, Buy America requirements in sections 70912(6) and 70914 in Public Law No: 117-58, the Infrastructure Investment and Jobs Act, also known as BIL. The BABA Act will be required for both BIL and AIP grants. FAA's Buy American requirements are more restrictive than BABA, but BABA includes more specific requirements for construction materials. More information and implementation guidance will be provided as it becomes available. 
Without any guidance from FAA, AAAE recently supported a recent U.S. Department of Transportation (DOT) proposal to issue a temporary waiver of the new BABA requirements for construction materials. We expect DOT to issue the temporary waiver to allow the industry time to adjust to new rules, guidance, and compliance procedures. In the meantime, AAAE does not expect any significant changes to the process for complying with traditional Buy America requirements for steel and manufactured goods. See our May 16 Regulatory Alert for additional details. 
Project Eligibility Questions. The updated FAQ guidance provides clarifications on whether airports can use BIL funding for some types of projects, including revenue producing aeronautical support facilities, acquiring and installing Explosive Detection System machines, revenue generating parking facilities, and projects that improve the efficiency of the airport's power sources. 
Q-U47: Can BIL AIG Allocated funds be used on sponsor-owned revenue producing aeronautical support facilities such as fuel farms and hangars?
A: Yes. Revenue producing aeronautical support facilities are defined under 49 U.S.C. 47102(24) as fuel farms, hangar buildings, self-service credit card aeronautical fueling systems, airplane wash racks, major rehabilitation of a hangar owned by a sponsor, or other aeronautical support facilities that the Secretary determines will increase the revenue producing ability of the airport. 
AIG Allocated funds have expanded eligibility beyond AIP. BIL eligibility allows these types of projects to be funded at any airport, regardless of size. The AIP statutory “airside needs“ test is not applicable to BIL projects. However, to be BIL-eligible, the project would still need to be a new installation or major improvement to increase revenue production at the airport. Because the goal of BIL is to improve the nation's infrastructure, maintenance and repair are not eligible. For example, the expansion of a fuel farm to include a new fuel tank, increasing capacity, would be eligible as a new installation. A project to replace old fuel tank supply lines would be considered general maintenance and ineligible.
Q-U54: Can BIL funds be used to acquire and install Explosive Detection System (EDS) machines?
A: Use of AIG Allocated or ATP funds for acquisition and installation of the EDS machines used to screen passenger checked baggage is potentially eligible. The Transportation Security Administration (TSA) must agree in writing that the EDS machines are required, and TSA must provide evidence that they cannot finance them in the near term. Coordinate with your local ADO/RO. 
Q-U60: Can BIL AIG Allocated funds be used for revenue generating parking for vehicles of passengers or delivering of passengers?
A: No. Use of AIG Allocated funds for revenue generating parking lots (including parking structures or garages) is not eligible for BIL funding for any size airport. 
Q-U67: Are projects that increase energy efficiency of an airport's power sources, such as solar or geo-thermal, eligible for BIL funding?
A: Yes. If in a nonattainment or maintenance area meeting the criteria for the VALE program see Q-U35. 
For all other airports AIG Allocated funds can be used to assess the airport's energy requirements in order to identify opportunities to increase energy efficiency at the airport as outlined under 49 U.S.C. 47140(a). AIG Allocated funds can be used for improvements identified in the energy assessment that increase energy efficiency at the airport under 49 U.S.C. 47140(b). Contact your ADO for additional guidance.
State Block Grant Program (SBGP). FAA's updated guidance includes 6 new FAQs about BIL implementation and the SBGP (Q-SB1 through Q-SB6), including how funds will be administered to airports covered on the SBGP; how states apply for AIG grants; and the role of the state in completing NEPA reviews and planning for AIG funded projects. 
Next Steps: 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:
• May 16 is the deadline for eligible airports to apply for an FY22 grant under the FCT Competitive Grant Program, which provides $20 million per year in competitive grants for airports that own an FCT air traffic control tower. 
• Within the next month, FAA is expected to begin announcing FY22 AIG grants for specific airport projects based on applications that have been submitted to date.
• FAA is expected to announce FY22 ATP grant awards, or a notice of intent to fund projects, by July.
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. 
The Federal Aviation Administration (FAA) released on May 16 an updated 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), popularly known as the Bipartisan Infrastructure Law (BIL), over the next five years. 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. 
The updated FAQ guidance provides additional details for airports on how to apply for and use their share of AIG funds; addresses whether some specific types of projects are eligible under BIL (e.g., revenue producing aeronautical support facilities); briefly discusses new Build America, Buy America Act requirements; and adds a new section for State Block Grant Program questions.
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 first iteration released in early March. A brief review of some of the changes are discussed further below. While the document is dated May 13, the FAQs were posted to FAA's website this morning. 
Updated FAQ Guidance on BIL Implementation
BIL Application Process. The updated FAQ document includes information about the application process for AIG grants, FAA Contract Tower (FCT) Competitive Grant Program grants (AIG Competitive), and ATP grants. Airports are encouraged to work with their Airport District Office or Regional Office to apply to use FY22 AIG allocated funds for specific projects. The application process is similar to how airports apply for Airport Improvement Program (AIP) entitlement grants. 
Q-A1: How does an airport apply for a BIL grant?
A: AIG Allocated: Follow AIP process including projects in the CIP, submittal of the SF-424, Application for Federal Assistance and other documents as required by FAA Airports Standard Operating Procedure (SOP) 6.00 and the local ADO or RO. 
AIG Competitive: For projects selected through the competitive process under the annual NOFO, follow AIP process including projects in the CIP, submittal of the SF-424, Application for Federal Assistance and other documents as required by FAA Airports SOP 6.00 and the local ADO or RO. 
ATP: For projects selected through the competitive process under the annual NOFO, follow AIP process including projects in the CIP, submittal of the SF-424, Application for Federal Assistance and other documents as required by FAA Airports SOP 6.00 and the local ADO or RO. 
Build America, Buy America (BABA) Act Requirements. Under FAA's long-standing Buy America statute, all steel and manufactured goods used in AIP funded projects must be produced in the United States. Under BIL, Congress expanded these requirements to ensure that “all construction materials“ are manufactured in the United States. However, to date, no meaningful guidance has been released by the Administration or FAA on how airports are expected to comply with the new requirements. This is further supported by the FAQ on this topic released on May 16. 
Q-U61: What is the Build America, Buy America (BABA) Act?
A: Buy American requirements under 49 U.S.C. 50101, Build America, Buy America requirements in sections 70912(6) and 70914 in Public Law No: 117-58, the Infrastructure Investment and Jobs Act, also known as BIL. The BABA Act will be required for both BIL and AIP grants. FAA's Buy American requirements are more restrictive than BABA, but BABA includes more specific requirements for construction materials. More information and implementation guidance will be provided as it becomes available. 
Without any guidance from FAA, AAAE recently supported a recent U.S. Department of Transportation (DOT) proposal to issue a temporary waiver of the new BABA requirements for construction materials. We expect DOT to issue the temporary waiver to allow the industry time to adjust to new rules, guidance, and compliance procedures. In the meantime, AAAE does not expect any significant changes to the process for complying with traditional Buy America requirements for steel and manufactured goods. See our May 16 Regulatory Alert for additional details. 
Project Eligibility Questions. The updated FAQ guidance provides clarifications on whether airports can use BIL funding for some types of projects, including revenue producing aeronautical support facilities, acquiring and installing Explosive Detection System machines, revenue generating parking facilities, and projects that improve the efficiency of the airport's power sources. 
Q-U47: Can BIL AIG Allocated funds be used on sponsor-owned revenue producing aeronautical support facilities such as fuel farms and hangars?
A: Yes. Revenue producing aeronautical support facilities are defined under 49 U.S.C. 47102(24) as fuel farms, hangar buildings, self-service credit card aeronautical fueling systems, airplane wash racks, major rehabilitation of a hangar owned by a sponsor, or other aeronautical support facilities that the Secretary determines will increase the revenue producing ability of the airport. 
AIG Allocated funds have expanded eligibility beyond AIP. BIL eligibility allows these types of projects to be funded at any airport, regardless of size. The AIP statutory “airside needs“ test is not applicable to BIL projects. However, to be BIL-eligible, the project would still need to be a new installation or major improvement to increase revenue production at the airport. Because the goal of BIL is to improve the nation's infrastructure, maintenance and repair are not eligible. For example, the expansion of a fuel farm to include a new fuel tank, increasing capacity, would be eligible as a new installation. A project to replace old fuel tank supply lines would be considered general maintenance and ineligible.
Q-U54: Can BIL funds be used to acquire and install Explosive Detection System (EDS) machines?
A: Use of AIG Allocated or ATP funds for acquisition and installation of the EDS machines used to screen passenger checked baggage is potentially eligible. The Transportation Security Administration (TSA) must agree in writing that the EDS machines are required, and TSA must provide evidence that they cannot finance them in the near term. Coordinate with your local ADO/RO. 
Q-U60: Can BIL AIG Allocated funds be used for revenue generating parking for vehicles of passengers or delivering of passengers?
A: No. Use of AIG Allocated funds for revenue generating parking lots (including parking structures or garages) is not eligible for BIL funding for any size airport. 
Q-U67: Are projects that increase energy efficiency of an airport's power sources, such as solar or geo-thermal, eligible for BIL funding?
A: Yes. If in a nonattainment or maintenance area meeting the criteria for the VALE program see Q-U35. 
For all other airports AIG Allocated funds can be used to assess the airport's energy requirements in order to identify opportunities to increase energy efficiency at the airport as outlined under 49 U.S.C. 47140(a). AIG Allocated funds can be used for improvements identified in the energy assessment that increase energy efficiency at the airport under 49 U.S.C. 47140(b). Contact your ADO for additional guidance.
State Block Grant Program (SBGP). FAA's updated guidance includes 6 new FAQs about BIL implementation and the SBGP (Q-SB1 through Q-SB6), including how funds will be administered to airports covered on the SBGP; how states apply for AIG grants; and the role of the state in completing NEPA reviews and planning for AIG funded projects. 
Next Steps: 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:
• May 16 is the deadline for eligible airports to apply for an FY22 grant under the FCT Competitive Grant Program, which provides $20 million per year in competitive grants for airports that own an FCT air traffic control tower. 
• Within the next month, FAA is expected to begin announcing FY22 AIG grants for specific airport projects based on applications that have been submitted to date.
• FAA is expected to announce FY22 ATP grant awards, or a notice of intent to fund projects, by July.
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. 
