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769 

Federal Aviation Administration, DOT 

§ 158.13 

(3) Who is a nonrevenue passenger or 

obtained the ticket for air transpor-
tation with a frequent flier award cou-
pon; 

(4) On flights, including flight seg-

ments, between 2 or more points in Ha-
waii; 

(5) In Alaska aboard an aircraft hav-

ing a certificated seating capacity of 
fewer than 60 passengers; or 

(6) Enplaning at an airport if the pas-

senger did not pay for the air transpor-
tation that resulted in the 
enplanement due to Department of De-
fense charter arrangements and pay-
ments. 

(b) No public agency may require a 

foreign airline that does not serve a 
point or points in the U.S. to collect a 
PFC from a passenger. 

[Doc. No. 26385, 56 FR 24278, May 29, 1991, as 
amended by Amdt. 158–2, 65 FR 34541, May 30, 
2000; Amdt. 158–4, 72 FR 28847, May 23, 2007] 

§ 158.11 Public agency request not to 

require collection of PFC’s by a 
class of air carriers or foreign air 
carriers or for service to isolated 
communities. 

(a) Subject to the requirements of 

this part, a public agency may request 
that collection of PFC’s not be re-
quired for— 

(1) Passengers enplaned by any class 

of air carrier or foreign air carrier if 
the number of passengers enplaned by 
the carriers in the class constitutes not 
more than one percent of the total 
number of passengers enplaned annu-
ally at the airport at which the fee is 
imposed; or 

(2) Passengers enplaned on a flight to 

an airport— 

(i) That has fewer than 2,500 pas-

senger boardings each year and re-
ceives scheduled passenger service; or 

(ii) In a community that has a popu-

lation of less than 10,000 and is not con-
nected by a land highway or vehicular 
way to the land-connected National 
Highway System within a State. 

(b) The public agency may request 

this exclusion authority under para-
graph (a)(1) or (a)(2) of this section or 
both. 

[Doc. No. FAA–2000–7402, 65 FR 34541, May 30, 
2000] 

§ 158.13 Use of PFC revenue. 

PFC revenue, including any interest 

earned after such revenue has been re-
mitted to a public agency, may be used 
only to finance the allowable costs of 
approved projects at any airport the 
public agency controls. 

(a) 

Total cost. 

PFC revenue may be 

used to pay all or part of the allowable 
cost of an approved project. 

(b) 

PFC administrative support costs. 

Public agencies may use PFC revenue 
to pay for allowable administrative 
support costs. Public agencies must 
submit these costs as a separate 
project in each PFC application. 

(c) 

Maximum cost for certain low-emis-

sion technology projects. 

If a project in-

volves a vehicle or ground support 
equipment using low emission tech-
nology eligible under § 158.15(b), the 
FAA will determine the maximum cost 
that may be financed by PFC revenue. 
The maximum cost for a new vehicle is 
the incremental amount between the 
purchase price of a new low emission 
vehicle and the purchase price of a 
standard emission vehicle, or the cost 
of converting a standard emission vehi-
cle to a low emission vehicle. 

(d) 

Bond-associated debt service and fi-

nancing costs. 

(1) Public agencies may 

use PFC revenue to pay debt service 
and financing costs incurred for a bond 
issued to carry out approved projects. 

(2) If the public agency’s bond docu-

ments require that PFC revenue be 
commingled in the general revenue 
stream of the airport and pledged for 
the benefit of holders of obligations, 
the FAA considers PFC revenue to 
have paid the costs covered in 
§ 158.13(d)(1) if— 

(i) An amount equal to the part of 

the proceeds of the bond issued to 
carry out approved projects is used to 
pay allowable costs of such projects; 
and 

(ii) To the extent the PFC revenue 

collected in any year exceeds the debt 
service and financing costs on such 
bonds during that year, an amount 
equal to the excess is applied as re-
quired by § 158.39. 

(e) 

Exception providing for the use of 

PFC revenue to pay for debt service for 
non-eligible projects. 

The FAA may au-

thorize a public agency under § 158.18 to 
impose a PFC for payments for debt 

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770 

14 CFR Ch. I (1–1–24 Edition) 

§ 158.15 

service on indebtedness incurred to 
carry out an airport project that is not 
eligible if the FAA determines that 
such use is necessary because of the fi-
nancial need of the airport. 

(f) 

Combination of PFC revenue and 

Federal grant funds. 

A public agency 

may combine PFC revenue and airport 
grant funds to carry out an approved 
project. These projects are subject to 
the record keeping and auditing re-
quirements of this part, as well as the 
reporting, record keeping and auditing 
requirements imposed by the Airport 
and Airway Improvement Act of 1982 
(AAIA). 

(g) 

Non-Federal share. 

Public agencies 

may use PFC revenue to meet the non- 
Federal share of the cost of projects 
funded under the Federal airport grant 
program or the FAA ‘‘Program to Per-
mit Cost-Sharing of Air Traffic Mod-
ernization Projects’’ under 49 U.S.C. 
44517. 

(h) 

Approval of project following ap-

proval to impose a PFC. 

The public agen-

cy may not use PFC revenue or inter-
est earned thereon except on an ap-
proved project. 

[Doc. No. 26385, 56 FR 24278, May 29, 1991, as 
amended by Amdt. 158–4, 72 FR 28847, May 23, 
2007] 

§ 158.15 Project eligibility at PFC lev-

els of $1, $2, or $3. 

(a) To be eligible, a project must— 
(1) Preserve or enhance safety, secu-

rity, or capacity of the national air 
transportation system; 

(2) Reduce noise or mitigate noise 

impacts resulting from an airport; or 

(3) Furnish opportunities for en-

hanced competition between or among 
air carriers. 

(b) Eligible projects are any of the 

following projects— 

(1) Airport development eligible 

under subchapter I of chapter 471 of 49 
U.S.C.; 

(2) Airport planning eligible under 

subchapter I of chapter 471 of 49 U.S.C.; 

(3) Terminal development as de-

scribed in 49 U.S.C. 47110(d); 

(4) Airport noise compatibility plan-

ning as described in 49 U.S.C. 47505; 

(5) Noise compatibility measures eli-

gible for Federal assistance under 49 
U.S.C. 47504, without regard to whether 

the measures are approved under 49 
U.S.C. 47504; 

(6) Construction of gates and related 

areas at which passengers are enplaned 
or deplaned and other areas directly re-
lated to the movement of passengers 
and baggage in air commerce within 
the boundaries of the airport. These 
areas do not include restaurants, car 
rental and automobile parking facili-
ties, or other concessions. Projects re-
quired to enable added air service by an 
air carrier with less than 50 percent of 
the annual passenger boardings at an 
airport have added eligibility. Such 
projects may include structural foun-
dations and floor systems, exterior 
building walls and load-bearing inte-
rior columns or walls, windows, door 
and roof systems, building utilities (in-
cluding heating, air conditioning, ven-
tilation, plumbing, and electrical serv-
ice), and aircraft fueling facilities next 
to the gate; 

(7) A project approved under the 

FAA’s ‘‘Program to Permit Cost-Shar-
ing of Air Traffic Modernization 
Projects’’ under 49 U.S.C. 44517; or 

(8) If the airport is in an air quality 

nonattainment area (as defined by sec-
tion 171(2) of the Clean Air Act (42 
U.S.C. 7501(2)) or a maintenance area 
referred to in section 175A of such Act 
(42 U.S.C. 7505a), and the project will 
result in the airport receiving appro-
priate emission credits as described in 
49 U.S.C. 47139, a project for: 

(i) Converting vehicles eligible under 

§ 158.15(b)(1) and ground support equip-
ment powered by a diesel or gasoline 
engine used at a commercial service 
airport to low-emission technology cer-
tified or verified by the Environmental 
Protection Agency to reduce emissions 
or to use cleaner burning conventional 
fuels; or 

(ii) Acquiring for use at a commer-

cial service airport vehicles eligible 
under § 158.15(b)(1) and, subject to 
§ 158.13(c), ground support equipment 
that include low-emission technology 
or use cleaner burning fuels. 

(c) An eligible project must be ade-

quately justified to qualify for PFC 
funding. 

[Doc. No. 26385, 56 FR 24278, May 29, 1991; 56 
FR 37127, Aug. 2, 1991; Amdt. 158–2, 65 FR 
34541, May 30, 2000; Amdt. 158–4, 72 FR 28848, 
May 23, 2007]