788 

14 CFR Ch. I (1–1–24 Edition) 

§ 158.87 

proceedings. The due date for com-
ments and corrective action shall be no 
less than 60 days after publication of 
the notice. 

(c) If corrective action has not been 

taken as prescribed by the Adminis-
trator, the FAA holds a public hearing, 
and notice is given to the public agen-
cy and published in the F

EDERAL

R

EG

-

ISTER

at least 30 days prior to the hear-

ing. The hearing will be in a form de-
termined by the Administrator to be 
appropriate to the circumstances and 
to the matters in dispute. 

(d) The Administrator publishes the 

final decision in the F

EDERAL

R

EG

-

ISTER

. Where appropriate, the Adminis-

trator may prescribe corrective action, 
including any corrective action the 
public agency may yet take. A copy of 
the notice is also provided to the public 
agency. 

(e) Within 10 days of the date of pub-

lication of the notice of the Adminis-
trator’s decision, the public agency 
shall— 

(1) Advise the FAA in writing that it 

will complete any corrective action 
prescribed in the decision within 30 
days; or 

(2) Provide the FAA with a listing of 

the air carriers and foreign air carriers 
operating at the airport and all other 
issuing carriers that have remitted 
PFC revenue to the public agency in 
the preceding 12 months. 

(f) When the Administrator’s decision 

does not provide for corrective action 
or the public agency fails to complete 
such action, the FAA provides a copy 
of the F

EDERAL

R

EGISTER

notice to 

each air carrier and foreign air carrier 
identified in paragraph (e) of this sec-
tion. Such carriers are responsible for 
terminating or modifying PFC collec-
tion no later than 30 days after the 
date of notification by the FAA. 

§ 158.87 Loss of Federal airport grant 

funds. 

(a) If the Administrator determines 

that revenue derived from a PFC is ex-
cessive or is not being used as ap-
proved, the Administrator may reduce 
the amount of funds otherwise payable 
to the public agency under 49 U.S.C. 
47114. Such a reduction may be made as 
a corrective action under § 158.83 or 
§ 158.85 of this part. 

(b) The amount of the reduction 

under paragraph (a) of this section 
shall equal the excess collected, or the 
amount not used in accordance with 
this part. 

(c) A reduction under paragraph (a) 

of this section shall not constitute a 
withholding of approval of a grant ap-
plication or the payment of funds 
under an approved grant within the 
meaning of 49 U.S.C. 47111(d). 

[Doc. No. 26385, 56 FR 24278, May 29, 1991, as 
amended by Amdt. 158–2, 65 FR 34543, May 30, 
2000] 

Subpart F—Reduction in Airport 

Improvement Program Appor-
tionment 

§ 158.91 General. 

This subpart describes the required 

reduction in funds apportioned to a 
large or medium hub airport that im-
poses a PFC. 

§ 158.93 Public agencies subject to re-

duction. 

The funds apportioned under 49 

U.S.C. 47114 to a public agency for a 
specific primary commercial service 
airport that it controls are reduced if— 

(a) Such airport enplanes 0.25 percent 

or more of the total annual 
enplanements in the U.S., and 

(b) The public agency imposes a PFC 

at such airport. 

[Doc. No. 26385, 56 FR 24278, May 29, 1991, as 
amended by Amdt. 158–2, 65 FR 34543, May 30, 
2000] 

§ 158.95 Implementation of reduction. 

(a) A reduction in apportioned funds 

will not take effect until the first fis-
cal year following the year in which 
the collection of the PFC is begun and 
will be applied in each succeeding fis-
cal year in which the public agency im-
poses the PFC. 

(b) The reduction in apportioned 

funds is calculated at the beginning of 
each fiscal year and shall be an amount 
equal to— 

(1) In the case of a fee of $3 or less, 50 

percent of the projected revenues from 
the fee in the fiscal year but not by 
more than 50 percent of the amount 
that otherwise would be apportioned 
under this section; and 

789 

Federal Aviation Administration, DOT 

Pt. 158, App. A 

(2) In the case of a fee of more than 

$3, 75 percent of the projected revenues 
from the fee in the fiscal year but not 
by more than 75 percent of the amount 
that otherwise would be apportioned 
under this section. 

(c) If the projection of PFC revenue 

in a fiscal year is inaccurate, the re-
duction in apportioned funds may be 
increased or decreased in the following 
fiscal year, except that any further re-
duction shall not cause the total reduc-
tion to exceed 50 percent of such appor-
tioned amount as would otherwise be 
apportioned in any fiscal year. 

[Doc. No. 26385, 56 FR 24278, May 29, 1991, as 
amended by Amdt. 158–2, 65 FR 34543, May 30, 
2000] 

A

PPENDIX

A 

TO

P

ART

158—A

SSURANCES

 

A. 

General. 

1. These assurances shall be complied with 

in the conduct of a project funded with pas-
senger facility charge (PFC) revenue. 

2. These assurances are required to be sub-

mitted as part of the application for ap-
proval of authority to impose a PFC under 
the provisions of 49 U.S.C. 40117. 

3. Upon approval by the Administrator of 

an application, the public agency is respon-
sible for compliance with these assurances. 

B. 

Public agency certification. 

The public 

agency hereby assures and certifies, with re-
spect to this project that: 

1. Responsibility and authority of the pub-

lic agency. It has legal authority to impose 
a PFC and to finance and carry out the pro-
posed project; that a resolution, motion or 
similar action has been duly adopted or 
passed as an official act of the public agen-
cy’s governing body authorizing the filing of 
the application, including all understandings 
and assurances contained therein, and di-
recting and authorizing the person identified 
as the official representative of the public 
agency to act in connection with the applica-
tion. 

2. Compliance with regulation. It will com-

ply with all provisions of 14 CFR part 158. 

3. Compliance with state and local laws 

and regulations. It has complied, or will 
comply, with all applicable State and local 
laws and regulations. 

4. Environmental, airspace and airport lay-

out plan requirements. It will not use PFC 
revenue on a project until the FAA has noti-
fied the public agency that— 

(a) Any actions required under the Na-

tional Environmental Policy Act of 1969 have 
been completed; 

(b) The appropriate airspace finding has 

been made; and 

(c) The FAA Airport Layout Plan with re-

spect to the project has been approved. 

5. Nonexclusivity of contractual agree-

ments. It will not enter into an exclusive 
long-term lease or use agreement with an air 
carrier or foreign air carrier for projects 
funded by PFC revenue. Such leases or use 
agreements will not preclude the public 
agency from funding, developing, or assign-
ing new capacity at the airport with PFC 
revenue. 

6. Carryover provisions. It will not enter 

into any lease or use agreement with any air 
carrier or foreign air carrier for any facility 
financed in whole or in part with revenue de-
rived from a passenger facility charge if such 
agreement for such facility contains a carry-
over provision regarding a renewal option 
which, upon expiration of the original lease, 
would operate to automatically extend the 
term of such agreement with such carrier in 
preference to any potentially competing air 
carrier or foreign air carrier seeking to nego-
tiate a lease or use agreement for such facili-
ties. 

7. Competitive access. It agrees that any 

lease or use agreements between the public 
agency and any air carrier or foreign air car-
rier for any facility financed in whole or in 
part with revenue derived from a passenger 
facility charge will contain a provision that 
permits the public agency to terminate the 
lease or use agreement if— 

(a) The air carrier or foreign air carrier has 

an exclusive lease or use agreement for ex-
isting facilities at such airport; and 

(b) Any portion of its existing exclusive 

use facilities is not fully utilized and is not 
made available for use by potentially com-
peting air carriers or foreign air carriers. 

8. Rates, fees and charges. 
(a) It will not treat PFC revenue as airport 

revenue for the purpose of establishing a 
rate, fee or charge pursuant to a contract 
with an air carrier or foreign air carrier. 

(b) It will not include in its rate base by 

means of depreciation, amortization, or any 
other method, that portion of the capital 
costs of a project paid for by PFC revenue for 
the purpose of establishing a rate, fee or 
charge pursuant to a contract with an air 
carrier or foreign air carrier. 

(c) Notwithstanding the limitation pro-

vided in subparagraph (b), with respect to a 
project for terminal development, gates and 
related areas, or a facility occupied or used 
by one or more air carriers or foreign air car-
riers on an exclusive or preferential basis, 
the rates, fees, and charges payable by such 
carriers that use such facilities will be no 
less than the rates, fees, and charges paid by 
such carriers using similar facilities at the 
airport that were not financed by PFC rev-
enue.