Regulatory Alert: FAA Releases Notice of Funding Opportunity for Sustainable Aviation Fuels Grant Program
September 25, 2023
Congress created the new grant program, called 'Fueling Aviation's Sustainable Transition through Sustainable Aviation Fuels (FAST-SAF) and Low Emissions Aviation Technology (FAST-Tech),' through the Inflation Reduction Act (IRA), which was signed into law in August 2022. While airports qualify to apply for either a FAST-SAF or FAST-Tech grant, we only expect airports to be competitive for FAST-SAF grants. The FAST-SAF Grant Program is intended to, in part, issue grants that will enable SAF storage at on-airport facilities.
FAA has published the NOFO, application instructions, and other details about the FAST Grant Program here. The agency has set Monday, November 27, at 11:59 p.m. ET, as the deadline for submitting application packages. In its press release, FAA indicated that the agency is targeting mid-2024 to announce the first round of grant awards.
Background on FAST-SAF Grant Program. The IRA, which was signed into law by President Biden in August 2022, provided FAA with about $297 million to carry out a competitive grant program that will fund projects aimed at advancing the production and use of SAFs and low-emissions aviation technologies. The NOFO provides an overview and detailed information regarding the FAST Grant Program. As a reminder, these are the key details of which airports should be aware:
• Key Program Objectives: FAA indicated that the key objective of the FAST-SAF program will be to make investments that accelerate the production and use of SAFs, including furthering the SAF Grand Challenge and aviation climate goals that the Biden Administration has established. This includes achieving 3 billion gallons of domestic SAF production and use by 2030 and reaching net-zero greenhouse gas (GHG) emissions by 2050.
• Eligible Entities: Entities that are eligible to participate in the grant program include state and local governments, airport sponsors, for-profit companies, research institutions, and non-profits. FAA indicated in the NOFO that multiple entities may form a 'team' and apply together, so long as each member of the team qualifies as an eligible entity.
• Funding Breakdown: The IRA provides $244.53 million for projects related to the production, transportation, blending, or storage of SAFs; $46.53 million for projects related to low-emission aviation technologies; and $5.9 million for the U.S. Department of Transportation (DOT) and FAA to administer and provide oversight of the program.
• Project Considerations: When selecting projects under the FAST-SAF program, FAA must consider the following factors: (a) capacity to increase domestic production and deployment of SAF; (b) projected GHG emissions of a project and the potential reduction of GHG emissions that a project can create for air travel; (c) the capacity to create new jobs and develop supply chain partnerships in the United States; (d) for projects related to SAF production, the projected lifecycle GHG emissions benefits, including feedstock and fuel production and potential direct and indirect GHG emissions (resulting from changes in land use); and (e) the benefits of ensuring a diversity of feedstocks for SAF, including the use of waste carbon oxides and direct air capture.
• Cost Share: The federal cost share for projects is 75 percent, except for those at small hub and nonhub airports, where the federal cost share will increase to 90 percent.
• Two-Tier Grant Structure: FAST-SAF program grants will fall into two separate categories or tiers. Tier 1 grants will be smaller grant awards (about $100K-$200K) focused on regional supply chains that could identify infrastructure and distribution needs of key proponents (e.g., airports). Tier 2 grants will be larger grant awards (about $500K-$20M) for infrastructure projects to facilitate and scale fuel production, transportation, blending, and storage.
• Two Phases of Funding: About $244 million is available for FAST-SAF program grants. In the NOFO, FAA indicated that about half of this amount is expected to be awarded under Phase 1 of the program. Any remaining amount of FAST-SAF program funding will be awarded and made available during Phase 2. FAA believes Phase 2 grant awards will occur within two years of Phase 1 awards. Phase 2 funding opportunities will be announced at a later date.
FAST-SAF Grant Application Process. The NOFO outlines all the necessary information for airports to prepare an application. The application must include, among other things, a technical and management proposal outlining roles and responsibilities of key personnel involved in the project, the proposed project activities, a project schedule, and a narrative on how the proposed project meets the selection criteria listed in the NOFO. The application package must also include a budget narrative explaining a description of costs and how different funding sources will share in each type of project activity.
Airports may only submit one application, although it may contain multiple projects for FAA's consideration. Airports are highly encouraged to carefully review the application requirements outlined in Section D of the NOFO. Any questions regarding applications can be directed to FAA's FAST Program Office at FAST-SAFTECH@faa.gov. Application packages must be submitted to FAA via grants.gov by 11:59 p.m. ET on November 27.
FAST-SAF Grant Selection Criteria. In the NOFO, FAA outlines the following process by which applications for a FAST-SAF grant will be evaluated and selected:
• Initial Eligibility Review: FAA will first ensure that projects meet the eligibility requirements under the program. This means the project is located in the United States and facilitates the production, transportation, blending, or storage of SAF. Build America, Buy America (BABA) Act requirements, which were included in the Infrastructure Investment and Jobs Act, apply to the SAFs that are subject to proposed projects.
• Technical Review: A technical review team will review each application against five criteria (in order of importance): (a) the capacity for the eligible entity to increase the domestic production and deployment of SAF; (b) the projected GHG emissions from the proposed project and the project's potential to reduce or displace GHG emissions associated with air travel; (c) for projects related to SAF production, the projected lifecycle GHG emissions benefits; (d) the capacity to create new jobs and develop supply chain partnerships in the United States; and (e) the soundness of the technical work plan. The NOFO provides further detailed considerations for each factor. FAA also noted that the technical review is the most important part of the process that will be used to select projects.
• Project Readiness Review: Conducted in parallel with the technical review, the project readiness review will assess the applicant's qualifications, financial completeness of the cost proposal, and environmental review and permitting risks.
• Second Level Review: Results from the technical and project readiness reviews will be passed to a second level review team. During this review, applications will be evaluated against three administration and DOT priorities, including (a) ensuring a diversity of feedstocks for SAFs; (b) the potential for leveraging additional financial support for the project; and (c) how the project will address equity and Justice40 Initiative considerations. The second level review team will assign a recommendation based on the results of all the reviews.
• Senior Level Review: At the senior level review, a package of 'highly rated' projects will be passed to the Secretary of Transportation for consideration. The Secretary will complete final selection of projects based upon the results of this process.
FAA Webinar on FAST-SAF Funding Opportunity. FAA will be hosting a webinar to walk through the NOFO and answer questions from prospective applicants on Monday, October 2, at 1 p.m. ET. You can access the webinar information here:
Click to Join: https://faavideo.zoomgov.com/j/1614274871
• Password: 008123
• If prompted, accept the Zoom application as instructed
• For a camera enabled PC or laptop & Optimized for Google Chrome or Microsoft Edge
Web Browser: https://faavideo.zoomgov.com
• Click the JOIN button; enter Webinar ID: 161 427 4871
• Password: 008123
• If prompted, accept the Zoom application as instructed
• For a camera enabled PC or laptop & Optimized for Google Chrome or Microsoft Edge
t
Mobile Device:
• Download the ‘Zoom Cloud Meetings' App
• Select ‘Join a Meeting' and enter Webinar ID: 161 427 4871
• Password: 008123
Phone Audio Only:
• Call 1-888-924-3239; enter Webinar ID: 161 427 4871
• Password: 008123
What's Next? Applications for FAST-SAF and FAST-Tech grant funding must be submitted electronically via grants.gov no later than 11:59 p.m. ET on Monday, November 27. FAA indicated that the agency is targeting mid-2024 to announce the first round of grant awards. Airports are strongly encouraged to attend FAA's October 2 webinar on the FAST-SAF program funding opportunity if they are interested in applying.
can attend. However, if you or someone from your organization is interested, please contact Justin Barkowski for additional details and space availability.
