765
Federal Aviation Administration, DOT
§ 158.1
invalid on the day specified as the de-
termination void date. Interested per-
sons may, at least 15 days in advance of
the determination void date, petition
the FAA official who issued the deter-
mination to:
(1) Revise the determination based on
new facts that change the basis on
which it was made; or
(2) Extend the determination void
date. Determinations will be furnished
to the proponent, aviation officials of
the state concerned, and, when appro-
priate, local political bodies and other
interested persons.
§ 157.9 Notice of completion.
Within 15 days after completion of
any airport project covered by this
part, the proponent of such project
shall notify the FAA Airport District
Office or Regional Office by submission
of FAA Form 5010–5 or by letter. A
copy of FAA Form 5010–5 will be pro-
vided with the FAA determination.
PART 158—PASSENGER FACILITY
CHARGES (PFC’S)
Subpart A—General
Sec.
158.1
Applicability.
158.3
Definitions.
158.5
Authority to impose PFC’s.
158.7
Exclusivity of authority.
158.9
Limitations.
158.11
Public agency request not to require
collection of PFC’s by a class of air car-
riers or foreign air carriers or for service
to isolated communities.
158.13
Use of PFC revenue.
158.15
Project eligibility at PFC levels of $1,
$2, or $3.
158.17
Project eligibility at PFC levels of $4
or $4.50.
158.18
Use of PFC revenue to pay for debt
service for non-eligible projects.
158.19
Requirement for competition plans.
158.20
Submission of required documents.
Subpart B—Application and Approval
158.21
General.
158.23
Consultation with air carriers and
foreign air carriers.
158.24
Notice and opportunity for public
comment.
158.25
Applications.
158.27
Review of applications.
158.29
The Administrator’s decision.
158.30
PFC Authorization at Non-Hub Air-
ports.
158.31
Duration of authority to impose a
PFC after project implementation.
158.33
Duration of authority to impose a
PFC before project implementation.
158.35
Extension of time to submit applica-
tion to use PFC revenue.
158.37
Amendment of approved PFC.
158.39
Use of excess PFC revenue.
Subpart C—Collection, Handling, and
Remittance of PFC’s
158.41
General.
158.43
Public agency notification to collect
PFC’s.
158.45
Collection of PFC’s on tickets issued
in the U.S.
158.47
Collection of PFC’s on tickets issued
outside the U.S.
158.49
Handling of PFC’s.
158.51
Remittance of PFC’s.
158.53
Collection compensation.
Subpart D—Reporting, Recordkeeping and
Audits
158.61
General.
158.63
Reporting requirements: Public agen-
cy.
158.65
Reporting requirements: Collecting
air carriers.
158.67
Recordkeeping and auditing: Public
agency.
158.69
Recordkeeping and auditing: Col-
lecting carriers.
158.71
Federal oversight.
Subpart E—Termination
158.81
General.
158.83
Informal resolution.
158.85
Termination of authority to impose
PFC’s.
158.87
Loss of Federal airport grant funds.
Subpart F—Reduction in Airport
Improvement Program Apportionments
158.91
General.
158.93
Public agencies subject to reduction.
158.95
Implementation of reduction.
A
PPENDIX
A
TO
P
ART
158—A
SSURANCES
A
UTHORITY
: 49 U.S.C. 106(g), 40116–40117,
47106, 47111, 47114–47116, 47524, 47526.
S
OURCE
: Docket No. 26385, 56 FR 24278, May
29, 1991, unless otherwise noted.
Subpart A—General
§ 158.1 Applicability.
This part applies to passenger facil-
ity charges (PFC’s) as may be approved
by the Administrator of the Federal
Aviation Administration (FAA) and
766
14 CFR Ch. I (1–1–24 Edition)
§ 158.3
imposed by a public agency that con-
trols a commercial service airport.
This part also describes the procedures
for reducing funds to a large or me-
dium hub airport that imposes a PFC.
[Doc. No. FAA–2000–7402, 65 FR 34540, May 30,
2000]
§ 158.3 Definitions.
The following definitions apply in
this part:
Airport
means any area of land or
water, including any heliport, that is
used or intended to be used for the
landing and takeoff of aircraft, and any
appurtenant areas that are used or in-
tended to be used for airport buildings
or other airport facilities or rights-of-
way, together with all airport build-
ings and facilities located thereon.
Airport capital plan
means a capital
improvement program that lists air-
port-related planning, development or
noise compatibility projects expected
to be accomplished with anticipated
available funds.
Airport layout plan (ALP)
means a
plan showing the existing and proposed
airport facilities and boundaries in a
form prescribed by the Administrator.
Airport revenue
means revenue gen-
erated by a public airport (1) through
any lease, rent, fee, PFC or other
charge collected, directly or indirectly,
in connection with any aeronautical
activity conducted on an airport that
it controls; or (2) In connection with
any activity conducted on airport land
acquired with Federal financial assist-
ance, or with PFC revenue under this
part, or conveyed to such public agency
under the provisions of any Federal
surplus property program or any provi-
sion enacted to authorize the convey-
ance of Federal property to a public
agency for airport purposes.
Air travel ticket
includes all docu-
ments, electronic records, boarding
passes, and any other ticketing me-
dium about a passenger’s itinerary nec-
essary to transport a passenger by air,
including passenger manifests.
Allowable cost
means the reasonable
and necessary costs of carrying out an
approved project including costs in-
curred prior to and subsequent to the
approval to impose a PFC, and making
payments for debt service on bonds and
other indebtedness incurred to carry
out such projects. Allowable costs in-
clude only those costs incurred on or
after November 5, 1990. Costs of ter-
minal development incurred after Au-
gust 1, 1986, at an airport that did not
have more than .25 percent of the total
annual passenger boardings in the U.S.
in the most recent calendar year for
which data is available and at which
total passenger boardings declined by
at least 16 percent between calendar
year 1989 and calendar year 1997 are al-
lowable.
Approved project
means a project for
which the FAA has approved using PFC
revenue under this part. The FAA may
also approve specific projects con-
tained in a single or multi-phased
project or development described in an
airport capital plan separately. This
includes projects acknowledged by the
FAA under § 158.30 of this part.
Bond financing costs
means the costs
of financing a bond and includes such
costs as those associated with issuance,
underwriting discount, original issue
discount, capitalized interest, debt
service reserve funds, initial credit en-
hancement costs, and initial trustee
and paying agent fees.
Charge effective date
means the date
on which carriers are obliged to collect
a PFC.
Charge expiration date
means the date
on which carriers are to cease to col-
lect a PFC.
Collecting carrier
means an issuing
carrier or other carrier collecting a
PFC, whether or not such carrier issues
the air travel ticket.
Collection
means the acceptance of
payment of a PFC from a passenger.
Commercial service airport
means a
public airport that annually enplanes
2,500 or more passengers and receives
scheduled passenger service of aircraft.
Covered air carrier
means an air car-
rier that files for bankruptcy protec-
tion or has an involuntary bankruptcy
proceeding started against it after De-
cember 12, 2003. An air carrier that is
currently in compliance with PFC re-
mittance requirements and has an in-
voluntary bankruptcy proceeding com-
menced against it has 90 days from the
767
Federal Aviation Administration, DOT
§ 158.3
date such proceeding was filed to ob-
tain dismissal of the involuntary peti-
tion before becoming a covered air car-
rier. An air carrier ceases to be a cov-
ered air carrier when it emerges from
bankruptcy protection.
Covered airport
means a medium or
large hub airport at which one or two
air carriers control more than 50 per-
cent of passenger boardings.
Debt service
means payments for such
items as principal and interest, sinking
funds, call premiums, periodic credit
enhancement fees, trustee and paying
agent fees, coverage, and remarketing
fees.
Exclusive long-term lease or use agree-
ment
means an exclusive lease or use
agreement between a public agency and
an air carrier or foreign air carrier
with a term of 5 years or more.
FAA Airports office
means a regional,
district or field office of the Federal
Aviation Administration that admin-
isters Federal airport-related matters.
Financial need
means that a public
agency cannot meet its operational or
debt service obligations and does not
have at least a 2-month capital reserve
fund.
Frequent flier award coupon
means a
zero-fare award of air transportation
that an air carrier or foreign air car-
rier provides to a passenger in ex-
change for accumulated travel mileage
credits in a customer loyalty program,
whether or not the term ‘‘frequent
flier’’ is used in the definition of that
program. The definition of ‘‘frequent
flier award coupon’’ does not extend to
redemption of accumulated credits for
awards of additional or upgraded serv-
ice on trips for which the passenger has
paid a published fare, ‘‘two-for-the-
price-of-one’’ and similar marketing
programs, or to air transportation pur-
chased for a passenger by other parties.
Ground support equipment
means serv-
ice and maintenance equipment used at
an airport to support aeronautical op-
erations and related activities. Bag-
gage tugs, belt loaders, cargo loaders,
forklifts, fuel trucks, lavatory trucks,
and pushback tractors are among the
types of vehicles that fit this defini-
tion.
Implementation of an approved project
means: (1) With respect to construc-
tion, issuance to a contractor of notice
to proceed or the start of physical con-
struction; (2) with respect to non-
construction projects other than prop-
erty acquisition, commencement of
work by a contractor or public agency
to carry out the statement of work; or
(3) with respect to property acquisition
projects, commencement of title
search, surveying, or appraisal for a
significant portion of the property to
be acquired.
Issuing carrier
means any air carrier
or foreign air carrier that issues an air
travel ticket or whose imprinted ticket
stock is used in issuing such ticket by
an agent.
Medium or large hub airport
means a
commercial service airport that has
more than 0.25 percent of the total
number of passenger boardings at all
such airports in the U.S. for the prior
calendar year, as determined by the
Administrator.
Non-hub airport
means a commercial
service airport (as defined in 49 U.S.C.
47102) that has less than 0.05 percent of
the passenger boardings in the U.S. in
the prior calendar year on an aircraft
in service in air commerce.
Nonrevenue passenger
means a pas-
senger receiving air transportation
from an air carrier or foreign air car-
rier for which remuneration is not re-
ceived by the air carrier or foreign air
carrier as defined under Department of
Transportation Regulations or as oth-
erwise determined by the Adminis-
trator. Air carrier employees or others
receiving air transportation against
whom token service charges are levied
are considered nonrevenue passengers.
Infants for whom a token fare is
charged are also considered nonrevenue
passengers.
Notice of intent (to impose or use PFC
revenue)
means a notice under § 158.30
from a public agency controlling a non-
hub airport that it intends to impose a
PFC and/or use PFC revenue. Except
for §§ 158.25 through 30, ‘‘notice of in-
tent’’ can be used interchangeably with
‘‘application.’’
One-way trip
means any trip that is
not a round trip.
Passenger enplaned
means a domestic,
territorial or international revenue
passenger enplaned in the States in
scheduled or nonscheduled service on
768
14 CFR Ch. I (1–1–24 Edition)
§ 158.5
aircraft in intrastate, interstate, or
foreign commerce.
PFC
means a passenger facility
charge covered by this part imposed by
a public agency on passengers enplaned
at a commercial service airport it con-
trols.
PFC administrative support costs
means the reasonable and necessary
costs of developing a PFC application
or amendment, issuing and maintain-
ing the required PFC records, and per-
forming the required audit of the pub-
lic agency’s PFC account. These costs
may include reasonable monthly finan-
cial account charges and transaction
fees.
Project
means airport planning, air-
port land acquisition or development of
a single project, a multi-phased devel-
opment program, (including but not
limited to development described in an
airport capital plan) or a new airport
for which PFC financing is sought or
approved under this part.
Public agency
means a State or any
agency of one or more States; a mu-
nicipality or other political subdivision
of a State; an authority created by
Federal, State or local law; a tax-sup-
ported organization; an Indian tribe or
pueblo that controls a commercial
service airport; or for the purposes of
this part, a private sponsor of an air-
port approved to participate in the
Pilot Program on Private Ownership of
Airports.
Round trip
means a trip on a com-
plete air travel itinerary which termi-
nates at the origin point.
Significant business interest
means an
air carrier or foreign air carrier that:
(1) Had no less than 1.0 percent of
passenger boardings at that airport in
the prior calendar year,
(2) Had at least 25,000 passenger
boardings at the airport in that prior
calendar year, or
(3) Provides scheduled service at that
airport.
State
means a State of the United
States, the District of Columbia, the
Commonwealth of Puerto Rico, the
Virgin Islands, American Samoa, the
Commonwealth of the Northern Mar-
iana Islands, and Guam.
Unliquidated PFC revenue
means rev-
enue received by a public agency from
collecting carriers but not yet used on
approved projects.
[Doc. No. 26385, 56 FR 24278, May 29, 1991, as
amended by Amdt. 158–2, 65 FR 34540, May 30,
2000; Amdt. 158–3, 70 FR 14934, Mar. 23, 2005;
Amdt. 158–4, 72 FR 28847, May 23, 2007]
§ 158.5 Authority to impose PFC’s.
Subject to the provisions of this part,
the Administrator may grant author-
ity to a public agency that controls a
commercial service airport to impose a
PFC of $1, $2, $3, $4, or $4.50 on pas-
sengers enplaned at such an airport. No
public agency may impose a PFC under
this part unless authorized by the Ad-
ministrator. No State or political sub-
division or agency thereof that is not a
public agency may impose a PFC cov-
ered by this part.
[Doc. No. 26385, 56 FR 24278, May 29, 1991, as
amended by Amdt. 158–2, 65 FR 34541, May 30,
2000]
§ 158.7 Exclusivity of authority.
(a) A State, political subdivision of a
State, or authority of a State or polit-
ical subdivision that is not the eligible
public agency may not tax, regulate,
prohibit, or otherwise attempt to con-
trol in any manner the imposition or
collection of a PFC or the use of PFC
revenue.
(b) No contract or agreement be-
tween an air carrier or foreign air car-
rier and a public agency may impair
the authority of such public agency to
impose a PFC or use the PFC revenue
in accordance with this part.
[Doc. No. 26385, 56 FR 24278, May 29, 1991, as
amended by Amdt. 158–2, 65 FR 34541, May 30,
2000]
§ 158.9 Limitations.
(a) No public agency may impose a
PFC on any passenger—
(1) For more than 2 boardings on a
one-way trip or in each direction of a
round trip;
(2) On any flight to an eligible point
on an air carrier that receives essential
air service compensation on that route.
The Administrator makes available a
list of carriers and eligible routes de-
termined by the Department of Trans-
portation for which PFC’s may not be
imposed under this section;
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
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]
771
Federal Aviation Administration, DOT
§ 158.21
§ 158.17 Project eligibility at PFC lev-
els of $4 or $4.50.
(a) A project for any airport is eligi-
ble for PFC funding at levels of $4 or
$4.50 if—
(1) The project meets the eligibility
requirements of § 158.15;
(2) The project costs requested for
collection at $4 or $4.50 cannot be paid
for from funds reasonably expected to
be available for the programs referred
to in 49 U.S.C. 48103; and
(3) In the case of a surface transpor-
tation or terminal project, the public
agency has made adequate provision
for financing the airside needs of the
airport, including runways, taxiways,
aprons, and aircraft gates.
(b) In addition, a project for a me-
dium or large airport is only eligible
for PFC funding at levels of $4 or $4.50
if the project will make a significant
contribution to improving air safety
and security, increasing competition
among air carriers, reducing current or
anticipated congestion, or reducing the
impact of aviation noise on people liv-
ing near the airport.
[Doc. No. FAA–2000–7402, 65 FR 34541, May 30,
2000]
§ 158.18 Use of PFC revenue to pay for
debt service for non-eligible
projects.
(a) The FAA may authorize a public
agency to impose a PFC to make pay-
ments for debt service on indebtedness
incurred to carry out at the airport a
project that is not eligible if the FAA
determines it is necessary because of
the financial need of the airport. The
FAA defines financial need in § 158.3.
(b) A public agency may request au-
thority to impose a PFC and use PFC
revenue under this section using the
PFC application procedures in § 158.25.
The public agency must document its
financial position and explain its finan-
cial recovery plan that uses all avail-
able resources.
(c) The FAA reviews the application
using the procedures in § 158.27. The
FAA will issue its decision on the pub-
lic agency’s request under § 158.29.
[Doc. No. FAA–2006–23730, 72 FR 28848, May
23, 2007]
§ 158.19 Requirement for competition
plans.
(a) Beginning in fiscal year 2001, no
public agency may impose a PFC with
respect to a covered airport unless the
public agency has submitted a written
competition plan. This requirement
does not apply to PFC authority ap-
proved prior to April 5, 2000.
(b) The Administrator will review
any plan submitted under paragraph
(a) of this section to ensure that it
meets the requirements of 49 U.S.C.
47106(f) and periodically will review its
implementation to ensure that each
covered airport successfully imple-
ments its plan.
[Doc. No. FAA–2000–7402, 65 FR 34541, May 30,
2000]
Subpart B—Application and
Approval
§ 158.20 Submission of required docu-
ments.
(a) Letters and reports required by
this part may be transmitted to the ap-
propriate recipient (the public agency,
air carrier, and/or the FAA) via e-mail,
courier, facsimile, or U.S. Postal Serv-
ice.
(1) Documents sent electronically to
the FAA must be prepared in a format
readable by the FAA. Interested par-
ties can obtain the format at their
local FAA Airports Office.
(2) Any transmission to FAA Head-
quarters, using regular U.S. Postal
Service, is subject to inspection that
may result in delay and damage due to
the security process.
(b) Once the database development is
completed with air carrier capability,
public agencies and air carriers may
use the FAA’s national PFC database
to post their required quarterly re-
ports, and, in that case, do not have to
distribute the reports in any other
way.
[Doc. No. FAA–2006–23730, 72 FR 28848, May
23, 2007]
§ 158.21 General.
This subpart specifies the consulta-
tion and application requirements
under which a public agency may ob-
tain approval to impose a PFC and use
PFC revenue on a project. This subpart
772
14 CFR Ch. I (1–1–24 Edition)
§ 158.23
also establishes the procedure for the
Administrator’s review and approval of
applications and amendments and es-
tablishes requirements for use of excess
PFC revenue.
§ 158.23 Consultation with air carriers
and foreign air carriers.
(a)
Notice by public agency.
A public
agency must provide written notice to
air carriers and foreign air carriers
having a significant business interest
at the airport where the PFC is pro-
posed. A public agency must provide
this notice before the public agency
files an application with the FAA for
authority to impose a PFC under
§ 158.25(b). In addition, public agencies
must provide this notice before filing
an application with the FAA for au-
thority to use PFC revenue under
§ 158.25(c). Public agencies must also
provide this notice before filing a no-
tice of intent to impose and/or use a
PFC under § 158.30. Finally, a public
agency must provide this notice before
filing a request to amend the FAA’s de-
cision with respect to an approved PFC
as discussed in § 158.37(b)(1). The notice
shall include:
(1) Descriptions of projects being con-
sidered for funding by PFC’s;
(2) The PFC level for each project,
the proposed charge effective date, the
estimated charge expiration date, and
the estimated total PFC revenue;
(3) For a request by a public agency
that any class or classes of carriers not
be required to collect the PFC—
(i) The designation of each such
class,
(ii) The names of the carriers belong-
ing to each such class, to the extent
the names are known,
(iii) The estimated number of pas-
sengers enplaned annually by each
such class, and
(iv) The public agency’s reasons for
requesting that carriers in each such
class not be required to collect the
PFC; and
(4) Except as provided in § 158.25(c)(2),
the date and location of a meeting at
which the public agency will present
such projects to air carriers and for-
eign air carriers operating at the air-
port.
(b)
Meeting.
The meeting required by
paragraph (a)(4) of this section shall be
held no sooner than 30 days nor later
than 45 days after issuance of the writ-
ten notice required by paragraph (a) of
this section. At or before the meeting,
the public agency shall provide air car-
riers and foreign air carriers with—
(1) A description of projects;
(2) An explanation of the need for the
projects; and
(3) A detailed financial plan for the
projects, including—
(i) The estimated allowable project
costs allocated to major project ele-
ments;
(ii) The anticipated total amount of
PFC revenue that will be used to fi-
nance the projects; and
(iii) The source and amount of other
funds, if any, needed to finance the
projects.
(c)
Requirements of air carriers and for-
eign air carriers.
(1) Within 30 days fol-
lowing issuance of the notice required
by paragraph (a) of this section, each
carrier must provide the public agency
with a written acknowledgement that
it received the notice.
(2) Within 30 days following the meet-
ing, each carrier must provide the pub-
lic agency with a written certification
of its agreement or disagreement with
the proposed project. A certification of
disagreement shall contain the reasons
for such disagreement. The absence of
such reasons shall void a certification
of disagreement.
(3) If a carrier fails to provide the
public agency with timely acknowl-
edgement of the notice or timely cer-
tification of agreement or disagree-
ment with the proposed project, the
carrier is considered to have certified
its agreement.
[Doc. No. 26385, 56 FR 24278, May 29, 1991, as
amended by Amdt. 158–2, 65 FR 34541, May 30,
2000; Amdt. 158–3, 70 FR 14934, Mar. 23, 2005]
§ 158.24 Notice and opportunity for
public comment.
(a)(1)
Notice by public agency.
A public
agency must provide written notice
and an opportunity for public comment
before:
(i) Filing an application with the
FAA for authority to impose a PFC
under § 158.25(b);
(ii) Filing an application with the
FAA for authority to use PFC revenue
under § 158.25(c);
773
Federal Aviation Administration, DOT
§ 158.25
(iii) Filing a notice of intent to im-
pose and/or use a PFC under § 158.30;
and
(iv) Filing a request to amend a pre-
viously approved PFC as discussed in
§ 158.37(b)(1).
(2) The notice must allow the public
to file comments for at least 30 days,
but no more than 45 days, after the
date of publication of the notice or
posting on the public agency’s Web
site, as applicable.
(b)(1)
Notice contents.
The notice re-
quired by § 158.24(a) must include:
(i) A description of the project(s) the
public agency is considering for fund-
ing by PFC’s;
(ii) A brief justification for each
project the public agency is consid-
ering for funding by PFC’s;
(iii) The PFC level for each project;
(iv) The estimated total PFC revenue
the public agency will use for each
project;
(v) The proposed charge effective
date for the application or notice of in-
tent;
(vi) The estimated charge expiration
date for the application or notice of in-
tent;
(vii) The estimated total PFC rev-
enue the public agency will collect for
the application or notice of intent; and
(viii) The name of and contact infor-
mation for the person within the public
agency to whom comments should be
sent.
(2) The public agency must make
available a more detailed project jus-
tification or the justification docu-
ments to the public upon request.
(c)
Distribution of notice.
The public
agency must make the notice available
to the public and interested agencies
through one or more of the following
methods:
(1) Publication in local newspapers of
general circulation;
(2) Publication in other local media;
(3) Posting the notice on the public
agency’s Internet Web site; or
(4) Any other method acceptable to
the Administrator.
[Doc. No. FAA–2004–17999, 70 FR 14934, Mar.
23, 2005]
§ 158.25 Applications.
(a)
General.
This section specifies the
information the public agency must
file when applying for authority to im-
pose a PFC and for authority to use
PFC revenue on a project. A public
agency may apply for such authority
at any commercial service airport it
controls. The public agency must use
the proposed PFC to finance airport-re-
lated projects at that airport or at any
existing or proposed airport that the
public agency controls. A public agen-
cy may apply for authority to impose a
PFC before or concurrent with an ap-
plication to use PFC revenue. If a pub-
lic agency chooses to apply, it must do
so by using FAA Form 5500–1, PFC Ap-
plication (latest edition) and all appli-
cable Attachments. The public agency
must provide the information required
under paragraphs (b) or (c), or both, of
this section.
(b)
Application for authority to impose
a PFC.
This paragraph sets forth the
information to be submitted by all pub-
lic agencies seeking authority to im-
pose a PFC. A separate application
shall be submitted for each airport at
which a PFC is to be imposed. The ap-
plication shall be signed by an author-
ized official of the public agency, and,
unless otherwise authorized by the Ad-
ministrator, must include the fol-
lowing:
(1) The name and address of the pub-
lic agency.
(2) The name and telephone number
of the official submitting the applica-
tion on behalf of the public agency.
(3) The official name of the airport at
which the PFC is to be imposed.
(4) The official name of the airport at
which a project is proposed.
(5) A copy of the airport capital plan
or other documentation of planned im-
provements for each airport at which a
PFC financed project is proposed.
(6) A description of each project pro-
posed.
(7) The project justification, includ-
ing the extent to which the project
achieves one or more of the objectives
set forth in § 158.15(a) and (if a PFC
level above $3 is requested) the require-
ments of § 158.17. In addition—
(i) For any project for terminal de-
velopment, including gates and related
areas, the public agency shall discuss
774
14 CFR Ch. I (1–1–24 Edition)
§ 158.25
any existing conditions that limit com-
petition between and among air car-
riers and foreign air carriers at the air-
port, any initiatives it proposes to fos-
ter opportunities for enhanced com-
petition between and among such car-
riers, and the expected results of such
initiatives; or
(ii) For any terminal development
project at a covered airport, the public
agency shall submit a competition plan
in accordance with § 158.19.
(8) The charge to be imposed for each
project.
(9) The proposed charge effective
date.
(10) The estimated charge expiration
date.
(11) Information on the consultation
with air carriers and foreign air car-
riers having a significant business in-
terest at the airport and the public
comment process, including:
(i) A list of such carriers and those
notified;
(ii) A list of carriers that acknowl-
edged receipt of the notice provided
under § 158.23(a);
(iii) Lists of carriers that certified
agreement and that certified disagree-
ment with the project;
(iv) Information on which method
under § 158.24(b) the public agency used
to meet the public notice requirement;
and
(v) A summary of substantive com-
ments by carriers contained in any cer-
tifications of disagreement with each
project and disagreements with each
project provided by the public, and the
public agency’s reasons for continuing
despite such disagreements.
(12) If the public agency is also filing
a request under § 158.11—
(i) The request;
(ii) A copy of the information pro-
vided to the carriers under § 158.23(a)(3);
(iii) A copy of the carriers’ comments
with respect to such information;
(iv) A list of any class or classes of
carriers that would not be required to
collect a PFC if the request is ap-
proved; and
(v) The public agency’s reasons for
submitting the request in the face of
opposing comments.
(13) A copy of information regarding
the financing of the project presented
to the carriers and foreign air carriers
under § 158.23 of this part and as revised
during the consultation.
(14) A copy of all comments received
as a result of the carrier consultation
and public comment processes.
(15) For an application not accom-
panied by a concurrent application for
authority to use PFC revenue:
(i) A description of any alternative
methods being considered by the public
agency to accomplish the objectives of
the project;
(ii) A description of alternative uses
of the PFC revenue to ensure such rev-
enue will be used only on eligible
projects in the event the proposed
project is not ultimately approved for
use of PFC revenue;
(iii) A timetable with projected dates
for completion of project formulation
activities and submission of an applica-
tion to use PFC revenue; and
(iv) A projected date of project imple-
mentation and completion.
(16) A signed statement certifying
that the public agency will comply
with the assurances set forth in Appen-
dix A to this part.
(17) Such additional information as
the Administrator may require.
(c)
Application for authority to use PFC
revenue.
A public agency may use PFC
revenue only for projects approved
under this paragraph. This paragraph
sets forth the information that a public
agency shall submit, unless otherwise
authorized by the Administrator, when
applying for the authority to use PFC
revenue to finance specific projects.
(1) An application submitted concur-
rently with an application for the au-
thority to impose a PFC, must include:
(i) The information required under
paragraphs (b)(1) through (15) of this
section;
(ii) An FAA Form 5500–1, Attachment
G, Airport Layout Plan, Airspace, and
Environmental Findings (latest edi-
tion) providing the following informa-
tion:
(A) For projects required to be shown
on an ALP, the ALP depicting the
project has been approved by the FAA
and the date of such approval;
(B) All environmental reviews re-
quired by the National Environmental
Policy Act (NEPA) of 1969 have been
completed and a copy of the final FAA
775
Federal Aviation Administration, DOT
§ 158.27
environmental determination with re-
spect to the project has been approved,
and the date of such approval, if such
determination is required; and
(C) The final FAA airspace deter-
mination with respect to the project
has been completed, and the date of
such determination, if an airspace
study is required.
(iii) The information required by
§§ 158.25(b)(16) and 158.25(b)(17).
(2) An application where the author-
ity to impose a PFC has been pre-
viously approved:
(i) Must not be filed until the public
agency conducts further consultation
with air carriers and foreign air car-
riers under § 158.23. However, the meet-
ing required under § 158.23(a)(4) is op-
tional if there are no changes to the
projects after approval of the impose
authority and further opportunity for
public comment under § 158.24; and
(ii) Must include a summary of fur-
ther air carrier consultation and the
public agency’s response to any dis-
agreements submitted under the air
carrier consultation and public com-
ment processes conducted under para-
graph (c)(2)(i) of this section;
(iii) Must include the following, up-
dated and changed where appropriate:
(A) FAA Form 5500–1 without attach-
ments except as required below;
(B) For any projects where there
have been no changes since the FAA
approved authority to impose a PFC
for those projects, a list of projects in-
cluded in this application for use au-
thority. The FAA will consider the in-
formation on these projects, filed with
the impose authority application, in-
corporated by reference; and
(C) For any project that has changed
since receiving impose authority, the
public agency must file an Attachment
B for that project clearly describing
the changes to the project.
(iv) An FAA Form 5500–1, Attach-
ment G, Airport Layout Plan, Air-
space, and Environmental Findings
(latest edition) providing the following
information:
(A) For projects required to be shown
on an ALP, the ALP depicting the
project has been approved by the FAA
and the date of such approval;
(B) All environmental reviews re-
quired by the National Environmental
Policy Act (NEPA) of 1969 have been
completed and a copy of the final FAA
environmental determination with re-
spect to the project has been approved,
and the date of such approval, if such
determination is required; and
(C) The final FAA airspace deter-
mination with respect to the project
has been completed, and the date of
such determination, if an airspace
study is required; and
(v) The information required by
§§ 158.25(b)(16) and 158.25(b)(17).
[Doc. No. FAA–2004–17999, 70 FR 14935, Mar.
23, 2005]
§ 158.27 Review of applications.
(a)
General.
This section describes the
process for review of all applications
filed under § 158.25 of this part.
(b)
Determination of completeness.
Within 30 days after receipt of an appli-
cation by the FAA Airports office, the
Administrator determines whether the
application substantially complies
with the requirements of § 158.25.
(c)
Process for substantially complete
application.
If the Administrator deter-
mines the application is substantially
complete, the following procedures
apply:
(1) The Administrator advises the
public agency by letter that its appli-
cation is substantially complete.
(2) The Administrator may opt to
publish a notice in the F
EDERAL
R
EG
-
ISTER
advising that the Administrator
intends to rule on the application and
inviting public comment, as set forth
in paragraph (e) of this section. If the
Administrator publishes a notice, the
Administrator will provide a copy of
the notice to the public agency.
(3) If the Administrator publishes a
notice, the public agency—
(i) Shall make available for inspec-
tion, upon request, a copy of the appli-
cation, notice, and other documents
germane to the application, and
(ii) May publish the notice in a news-
paper of general circulation in the area
where the airport covered by the appli-
cation is located.
(4) After reviewing the application
and any public comments received
from a F
EDERAL
R
EGISTER
notice, the
Administrator issues a final decision
approving or disapproving the applica-
tion, in whole or in part, before 120
776
14 CFR Ch. I (1–1–24 Edition)
§ 158.29
days after the FAA Airports office re-
ceived the application.
(d)
Process for applications not substan-
tially complete.
If the Administrator de-
termines an application is not substan-
tially complete, the following proce-
dures apply:
(1) The Administrator notifies the
public agency in writing that its appli-
cation is not substantially complete.
The notification will list the informa-
tion required to complete the applica-
tion.
(2) Within 15 days after the Adminis-
trator sends such notification, the pub-
lic agency shall advise the Adminis-
trator in writing whether it intends to
supplement its application.
(3) If the public agency declines to
supplement the application, the Ad-
ministrator follows the procedures for
review of an application set forth in
paragraph (c) of this section and issues
a final decision approving or dis-
approving the application, in whole or
in part, no later than 120 days after the
application was received by the FAA
Airports office.
(4) If the public agency supplements
its application, the original application
is deemed to be withdrawn for purposes
of applying the statutory deadline for
the Administrator’s decision. Upon re-
ceipt of the supplement, the Adminis-
trator issues a final decision approving
or disapproving the supplemented ap-
plication, in whole or in part, no later
than 120 days after the supplement was
received by the FAA Airports office.
(e)
The Federal Register notice.
The
F
EDERAL
R
EGISTER
notice includes the
following information:
(1) The name of the public agency
and the airport at which the PFC is to
be imposed;
(2) A brief description of the PFC
project, the level of the proposed PFC,
the proposed charge effective date, the
proposed charge expiration date and
the total estimated PFC revenue;
(3) The address and telephone number
of the FAA Airports office at which the
application may be inspected;
(4) The Administrator’s determina-
tion on whether the application is sub-
stantially complete and any informa-
tion required to complete the applica-
tion; and
(5) The due dates for any public com-
ments.
(f)
Public comments.
(1) Interested per-
sons may file comments on the applica-
tion within 30 days after publication of
the Administrator’s notice in the F
ED
-
ERAL
R
EGISTER
.
(2) Three copies of these comments
shall be submitted to the FAA Airports
office identified in the F
EDERAL
R
EG
-
ISTER
notice.
(3) Commenters shall also provide
one copy of their comments to the pub-
lic agency.
(4) Comments from air carriers and
foreign air carriers may be in the same
form as provided to the public agency
under § 158.23.
[Doc. No. 26385, 56 FR 24278, May 29, 1991; 56
FR 30867, July 8, 1991, as amended by Amdt.
158–3, 70 FR 14936, Mar. 23, 2005]
§ 158.29 The Administrator’s decision.
(a)
Authority to impose a PFC.
(1) An
application to impose a PFC will be ap-
proved in whole or in part only after a
determination that—
(i) The amount and duration of the
PFC will not result in revenue that ex-
ceeds amounts necessary to finance the
project;
(ii) The project will achieve the ob-
jectives and criteria set forth in § 158.15
except for those projects approved
under § 158.18.
(iii) If a PFC level above $3 is being
approved, the project meets the cri-
teria set forth in § 158.17;
(iv) The collection process, including
any request by the public agency not
to require a class of carriers to collect
PFC’s, is reasonable, not arbitrary,
nondiscriminatory, and otherwise in
compliance with the law;
(v) The public agency has not been
found to be in violation of 49 U.S.C.
47524 and 47526;
(vi) The public agency has not been
found to be in violation of 49 U.S.C.
47107(b) governing the use of airport
revenue;
(vii) If the public agency has not ap-
plied for authority to use PFC revenue,
a finding that there are alternative
uses of the PFC revenue to ensure that
such revenue will be used on approved
projects; and
777
Federal Aviation Administration, DOT
§ 158.30
(viii) If applicable, the public agency
has submitted a competition plan in
accordance with § 158.19.
(2) The Administrator notifies the
public agency in writing of the decision
on the application. The notification
will list the projects and alternative
uses that may qualify for PFC financ-
ing under § 158.15, and (if a PFC level
above $3 is being approved) § 158.17, PFC
level, total approved PFC revenue in-
cluding the amounts approved at $3 and
less, $4, and/or $4.50, duration of au-
thority to impose and earliest permis-
sible charge effective date.
(b)
Authority to use PFC revenue on an
approved project.
(1) An application for
authority to use PFC revenue will be
approved in whole or in part only after
a determination that—
(i) The amount and duration of the
PFC will not result in revenue that ex-
ceeds amounts necessary to finance the
project;
(ii) The project will achieve the ob-
jectives and criteria set forth in § 158.15
except for those projects approved
under § 158.18.
(iii) If a PFC level above $3 is being
approved, the project meets the cri-
teria set forth in § 158.17; and
(iv) All applicable requirements per-
taining to the ALP for the airport, air-
space studies for the project, and the
National Environmental Policy Act of
1969 (NEPA), have been satisfied.
(2) The Administrator notifies the
public agency in writing of the decision
on the application. The notification
will list the approved projects, PFC
level, total approved PFC revenue,
total approved for collection, including
the amounts approved at $3 and less, $4,
and/or $4.50, and any limit on the dura-
tion of authority to impose a PFC as
prescribed under § 158.33.
(3) Approval to use PFC revenue to fi-
nance a project shall be construed as
approval of that project.
(c)
Disapproval of application.
(1) If an
application is disapproved, the Admin-
istrator notifies the public agency in
writing of the decision and the reasons
for the disapproval.
(2) A public agency reapplying for ap-
proval to impose or use a PFC must
comply with §§ 158.23, 158.24, and 158.25.
(d) The Administrator publishes a
monthly notice of PFC approvals and
disapprovals in the F
EDERAL
R
EGISTER
.
[Doc. No. 26385, 56 FR 24278, May 29, 1991; 56
FR 30867, July 8, 1991, as amended by Amdt.
158–2, 65 FR 34542, May 30, 2000; Amdt. 158–3,
70 FR 14936, Mar. 23, 2005; Amdt. 158–4, 72 FR
28848, May 23, 2007]
§ 158.30 PFC Authorization at Non-
Hub Airports.
(a)
General.
This section specifies the
procedures a public agency controlling
a non-hub airport must follow when no-
tifying the FAA of its intent to impose
a PFC and to use PFC revenue on a
project under this section. In addition,
this section describes the FAA’s rules
for reviewing and acknowledging a no-
tice of intent filed under this section.
A public agency may notify the FAA of
its intent to impose a PFC before or
concurrent with a notice of intent to
use PFC revenue. A public agency must
file a notice of intent in the manner
and form prescribed by the Adminis-
trator and must include the informa-
tion required under paragraphs (b), (c),
or both, of this section.
(b)
Notice of intent to impose a PFC.
This paragraph sets forth the informa-
tion a public agency must file to notify
the FAA of its intent to impose a PFC
under this section. The public agency
must file a separate notice of intent for
each airport at which the public agen-
cy plans on imposing a PFC. An au-
thorized official of the public agency
must sign the notice of intent and, un-
less authorized by the Administrator,
must include:
(1) A completed FAA Form 5500–1,
PFC Application (latest edition) with-
out attachments except as required
below;
(2) Project information (in the form
and manner prescribed by the FAA) in-
cluding the project title, PFC funds
sought, PFC level sought, and, if an ex-
isting Airport Improvement Program
(AIP) grant already covers this project,
the grant agreement number.
(3) If an existing AIP grant does not
cover this project, the notice of intent
must include the information in para-
graph (b)(2) of this section as well as
the following:
(i) Additional information describing
the proposed schedule for the project,
778
14 CFR Ch. I (1–1–24 Edition)
§ 158.30
(ii) A description of how this project
meets one of the PFC objectives in
§ 158.15(a), and
(iii) A description of how this project
meets the adequate justification re-
quirement in § 158.15(c).
(4) A copy of any comments received
by the public agency during the air
carrier consultation and public com-
ment processes (§§ 158.23 and 158.24) and
the public agency’s response to any dis-
agreements.
(5) If applicable, a request to exclude
a class of carriers from the require-
ment to collect the PFC (§ 158.11).
(6) A signed statement certifying
that the public agency will comply
with the assurances set forth in Appen-
dix A to this part.
(7) Any additional information the
Administrator may require.
(c)
Notice of intent to use PFC revenue.
A public agency may use PFC revenue
only for projects included in notices
filed under this paragraph or approved
under § 158.29. This paragraph sets forth
the information that a public agency
must file, unless otherwise authorized
by the Administrator, in its notice of
intent to use PFC revenue to finance
specific projects under this section.
(1) A notice of intent to use PFC rev-
enue filed concurrently with a notice of
intent to impose a PFC must include:
(i) The information required under
paragraphs (b)(1) through (7) of this
section;
(ii) A completed FAA Form 5500–1,
Attachment G, Airport Layout Plan,
Airspace, and Environmental Findings
(latest edition) for all projects not in-
cluded in an existing Federal airport
program grant.
(2) A notice of intent to use PFC rev-
enue where the FAA has previously ac-
knowledged a notice of intent to im-
pose a PFC must:
(i) Be preceded by further consulta-
tion with air carriers and the oppor-
tunity for public comment under
§§ 158.23 and 158.24 of this part. How-
ever, a meeting with the air carriers is
optional if all information is the same
as that provided with the impose au-
thority notice;
(ii) Include a copy of any comments
received by the public agency during
the air carrier consultation and public
comment processes (§§ 158.23 and 158.24)
and the public agency’s response to any
disagreements or negative comments;
and
(iii) Include any updated and changed
information:
(A) Required by paragraphs (b)(1), (2),
(5), (6), and (7) of this section; and
(B) Required by paragraph (c)(1)(ii) of
this section.
(d)
FAA review of notices of intent.
(1)
The FAA will review the notice of in-
tent to determine that:
(A) The amount and duration of the
PFC will not result in revenue that ex-
ceeds the amount necessary to finance
the project(s);
(B) Each proposed project meets the
requirements of § 158.15;
(C) Each project proposed at a PFC
level above $3.00 meets the require-
ments of § 158.17(a)(2) and (3);
(D) All applicable airport layout
plan, airspace, and environmental re-
quirements have been met for each
project;
(E) Any request by the public agency
to exclude a class of carriers from the
requirement to collect the PFC is rea-
sonable, not arbitrary, nondiscrim-
inatory, and otherwise complies with
the law; and
(F) The consultation and public com-
ment processes complied with §§ 158.23
and 158.24.
(2) The FAA will also make a deter-
mination regarding the public agency’s
compliance with 49 U.S.C. 47524 and
47526 governing airport noise and ac-
cess restrictions and 49 U.S.C. 47107(b)
governing the use of airport revenue.
Finally, the FAA will review all com-
ments filed during the air carrier con-
sultation and public comment proc-
esses.
(e)
FAA acknowledgment of notices of
intent.
Within 30 days of receipt of the
public agency’s notice of intent about
its PFC program, the FAA will issue a
written acknowledgment of the public
agency’s notice. The FAA’s acknowl-
edgment may concur with all proposed
projects, may object to some or all pro-
posed projects, or may object to the no-
tice of intent in its entirety. The
FAA’s acknowledgment will include
the reason(s) for any objection(s).
779
Federal Aviation Administration, DOT
§ 158.33
(f) Public agency actions following
issuance of FAA acknowledgment let-
ter. If the FAA does not object to ei-
ther a project or the notice of intent in
its entirety, the public agency may im-
plement its PFC program. The public
agency’s implementation must follow
the information specified in its notice
of intent. If the FAA objects to a
project, the public agency may not col-
lect or use PFC revenue on that
project. If the FAA objects to the no-
tice of intent in its entirety, the public
agency may not implement the PFC
program proposed in that notice. When
implementing a PFC under this sec-
tion, except for § 158.25, a public agency
must comply with all sections of part
158.
(g)
Acknowledgment not an order.
An
FAA acknowledgment issued under
this section is not considered an order
issued by the Secretary for purposes of
49 U.S.C. 46110 (Judicial Review).
(h)
Sunset provision.
This section will
expire May 9, 2008.
[Doc. No. FAA–2004–17999, 70 FR 14936, Mar.
23, 2005]
§ 158.31 Duration of authority to im-
pose a PFC after project implemen-
tation.
A public agency that has begun im-
plementing an approved project may
impose a PFC until—
(a) The charge expiration date is
reached;
(b) The total PFC revenue collected
plus interest earned thereon equals the
allowable cost of the approved project;
(c) The authority to collect the PFC
is terminated by the Administrator
under subpart E of this part; or
(d) The public agency is determined
by the Administrator to be in violation
of 49 U.S.C. 47524 and 47526, and the au-
thority to collect the PFC is termi-
nated under that statute’s imple-
menting regulations under this title.
[Doc. No. 26385, 56 FR 24278, May 29, 1991, as
amended by Amdt. 158–2, 65 FR 34542, May 30,
2000; Amdt. 158–4, 72 FR 28849, May 23, 2007]
§ 158.33 Duration of authority to im-
pose a PFC before project imple-
mentation.
(a) A public agency shall not impose
a PFC beyond the lesser of the fol-
lowing—
(1) 2 years after approval to use PFC
revenue on an approved project if the
project has not been implemented, or
(2) 5 years after the charge effective
date; or
(3) 5 years after the FAA’s decision
on the application (if the charge effec-
tive date is more than 60 days after the
decision date) if an approved project is
not implemented.
(b) If, in the Administrator’s judg-
ment, the public agency has not made
sufficient progress toward implementa-
tion of an approved project within the
times specified in paragraph (a) of this
section, the Administrator begins ter-
mination proceedings under subpart E
of this part.
(c) The authority to impose a PFC
following approval shall automatically
expire without further action by the
Administrator on the following dates:
(1) 3 years after the charge effective
date; or 3 years after the FAA’s deci-
sion on the application if the charge ef-
fective date is more than 60 days after
the decision date unless—
(i) The public agency has filed an ap-
plication for approval to use PFC rev-
enue for an eligible project that is
pending before the FAA;
(ii) An application to use PFC rev-
enue has been approved; or
(iii) A request for extension (not to
exceed 2 years) to submit an applica-
tion for project approval, under § 158.35,
has been granted; or
(2) 5 years after the charge effective
date; or 5 years after the FAA’s deci-
sion on the application (if the charge
effective date is more than 60 days
after the decision date) unless the pub-
lic agency has obtained project ap-
proval.
(d) If the authority to impose a PFC
expires under paragraph (c) of this sec-
tion, the public agency must provide
the FAA with a list of the air carriers
and foreign air carriers operating at
the airport and all other collecting car-
riers that have remitted PFC revenue
to the public agency in the preceding 12
months. The FAA notifies each of the
listed carriers to terminate PFC collec-
tion no later than 30 days after the
date of notification by the FAA.
(e) Restriction on reauthorization to
impose a PFC. Whenever the authority
to impose a PFC has expired or been
780
14 CFR Ch. I (1–1–24 Edition)
§ 158.35
terminated under this section, the Ad-
ministrator will not grant new ap-
proval to impose a PFC in advance of
implementation of an approved project.
[Doc. No. 26385, 56 FR 24278, May 29, 1991; 56
FR 37127, Aug. 2, 1991; Amdt. 158–4, 72 FR
28849, May 23, 2007]
§ 158.35 Extension of time to submit
application to use PFC revenue.
(a) A public agency may request an
extension of time to submit an applica-
tion to use PFC revenue after approval
of an application to impose PFC’s. At
least 30 days prior to submitting such
request, the public agency shall publish
notice of its intention to request an ex-
tension in a local newspaper of general
circulation and shall request com-
ments. The notice shall include
progress on the project, a revised
schedule for obtaining project approval
and reasons for the delay in submitting
the application.
(b) The request shall be submitted at
least 120 days prior to the charge expi-
ration date and, unless otherwise au-
thorized by the Administrator, shall be
accompanied by the following:
(1) A description of progress on the
project application to date.
(2) A revised schedule for submitting
the application.
(3) An explanation of the reasons for
delay in submitting the application.
(4) A summary financial report de-
picting the total amount of PFC rev-
enue collected plus interest, the pro-
jected amount to be collected during
the period of the requested extension,
and any public agency funds used on
the project for which reimbursement
may be sought.
(5) A summary of any further con-
sultation with air carriers and foreign
air carriers operating at the airport.
(6) A summary of comments received
in response to the local notice.
(c) The Administrator reviews the re-
quest for extension and accompanying
information, to determine whether—
(1) The public agency has shown good
cause for the delay in applying for
project approval;
(2) The revised schedule is satisfac-
tory; and
(3) Further collection will not result
in excessive accumulation of PFC rev-
enue.
(d) The Administrator, upon deter-
mining that the agency has shown good
cause for the delay and that other ele-
ments of the request are satisfactory,
grants the request for extension to the
public agency. The Administrator ad-
vises the public agency in writing not
more than 90 days after receipt of the
request. The duration of the extension
shall be as specified in § 158.33 of this
part.
§ 158.37 Amendment of approved PFC.
(a)(1) A public agency may amend the
FAA’s decision with respect to an ap-
proved PFC to:
(i) Increase or decrease the level of
PFC the public agency wants to collect
from each passenger,
(ii) Increase or decrease the total ap-
proved PFC revenue,
(iii) Change the scope of an approved
project,
(iv) Delete an approved project, or
(v) Establish a new class of carriers
under § 158.11 or amend any such class
previously approved.
(2) A public agency may not amend
the FAA’s decision with respect to an
approved PFC to add projects, change
an approved project to a different facil-
ity type, or alter an approved project
to accomplish a different purpose.
(b) The public agency must file a re-
quest to the Administrator to amend
the FAA’s decision with respect to an
approved PFC. The request must in-
clude or demonstrate:
(1)(i) Further consultation with the
air carriers and foreign air carriers and
seek public comment in accordance
with §§ 158.23 and 158.24 when applying
for those requests to:
(A) Amend the approved PFC amount
for a project by more than 25 percent of
the original approved amount if the
amount was $1,000,000 or greater,
(B) Amend the approved PFC amount
for a project by any percentage if the
original approved amount was below
$1,000,000 and the amended approved
amount is $1,000,000 or greater,
(C) Change the scope of a project, or
(D) Increase the PFC level to be col-
lected from each passenger.
(ii) No further consultation with air
carriers and foreign air carriers or pub-
lic comment is required by a public
agency in accordance with §§ 158.23 and
781
Federal Aviation Administration, DOT
§ 158.39
158.24 when applying for an amendment
in the following situations:
(A) To institute a decrease in the
level of PFC to be collected from each
passenger;
(B) To institute a decrease in the
total PFC revenue;
(C) To institute an increase of 25 per-
cent or less of the original approved
amount if the amount was more than
$1,000,000; or
(D) To institute an increase of any
amount if the original approved
amount of the project was less than
$1,000,000 and if the amended approved
amount of the project remains below
$1,000,000; or
(E) To establish a new class of car-
riers under § 158.11 or amend any such
class previously approved; or
(F) To delete an approved project.
(2) A copy of any comments received
from the processes in paragraph
(b)(1)(A) of this section for the carrier
consultation and the opportunity for
public comment in accordance with
§§ 158.23 and 158.24;
(3) The public agency’s reasons for
continuing despite any objections;
(4) A description of the proposed
amendment;
(5) Justification, if the amendment
involves an increase in the PFC
amount for a project by more than 25
percent of the original approved
amount if that amount is $1,000,000 or
greater, an increase in the PFC amount
by any percentage if the original ap-
proved amount was less than $1,000,000
and the amended approved amount is
$1,000,000 or greater, a change in the ap-
proved project scope, or any increase in
the approved PFC level to be collected
from each passenger.
(6) A description of how each project
meets the requirements of § 158.17(b),
for each project proposed for an in-
crease of the PFC level above $3.00 at a
medium or large hub airport;
(7) A signed statement certifying
that the public agency has met the
requiements of § 158.19, if applicable,
for any amendment proposing to in-
crease the PFC level above $3.00 at a
medium or large hub airport; and
(8) Any other information the Admin-
istrator may require.
(c) The Administrator will approve,
partially approve or disapprove the
amendment request and notify the pub-
lic agency of the decision within 30
days of receipt of the request. If a PFC
level of more than $3.00 is approved,
the Administrator must find the
project meets the requirements of
§§ 158.17 and 158.19, if applicable, before
the public agency can implement the
new PFC level.
(d) The public agency must notify the
carriers of any change to the FAA’s de-
cision with respect to an approved PFC
resulting from an amendment. The ef-
fective date of any new PFC level must
be no earlier than the first day of a
month which is at least 30 days from
the date the public agency notifies the
carriers.
[Doc. No. FAA–2004–17999, 70 FR 14937, Mar.
23, 2005, as amended by Amdt. 158–4, 72 FR
28849, May 23, 2007]
§ 158.39 Use of excess PFC revenue.
(a) If the PFC revenue remitted to
the public agency, plus interest earned
thereon, exceeds the allowable cost of
the project, the public agency must use
the excess funds for approved projects
or to retire outstanding PFC-financed
bonds.
(b) For bond-financed projects, any
excess PFC revenue collected under
debt servicing requirements shall be
retained by the public agency and used
for approved projects or retirement of
outstanding PFC-financed bonds.
(c) When the authority to impose a
PFC has expired or has been termi-
nated, accumulated PFC revenue shall
be used for approved projects or retire-
ment of outstanding PFC-financed
bonds.
(d) Within 30 days after the authority
to impose a PFC has expired or been
terminated, the public agency must
present a plan to the appropriate FAA
Airports office to begin using accumu-
lated PFC revenue. The plan must in-
clude a timetable for submitting any
necessary application under this part.
If the public agency fails to submit
such a plan, or if the plan is not ac-
ceptable to the Administrator, the Ad-
ministrator may reduce Federal air-
port grant program apportioned funds.
[Doc. No. 26385, 56 FR 24278, May 29, 1991, as
amended by Amdt. 158–4, 72 FR 28849, May 23,
2007]
782
14 CFR Ch. I (1–1–24 Edition)
§ 158.41
Subpart C—Collection, Handling,
and Remittance of PFC’s
§ 158.41 General.
This subpart contains the require-
ments for notification, collection, han-
dling and remittance of PFC’s.
§ 158.43 Public agency notification to
collect PFC’s.
(a) Following approval of an applica-
tion to impose a PFC under subpart B
of this part, the public agency shall no-
tify the air carriers and foreign air car-
riers required to collect PFC’s at its
airport of the Administrator’s ap-
proval. Each notified carrier shall no-
tify its agents, including other issuing
carriers, of the collection requirement.
(b) The notification shall be in writ-
ing and contain at a minimum the fol-
lowing information:
(1) The level of PFC to be imposed.
(2) The total revenue to be collected.
(3) The charge effective date will al-
ways be the first day of the month;
however, it must be at least 30 days
after the date the public agency noti-
fied the air carriers of the FAA’s ap-
proval to impose the PFC.
(4) The proposed charge expiration
date.
(5) A copy of the Administrator’s no-
tice of approval.
(6) The address where remittances
and reports are to be filed by carriers.
(c) The public agency must notify air
carriers required to collect PFCs at its
airport and the FAA of changes in the
charge expiration date at least 30 days
before the existing charge expiration
date or new charge expiration date,
whichever comes first. Each notified
air carrier must notify its agents, in-
cluding other issuing carriers, of such
changes.
(d) The public agency shall provide a
copy of the notification to the appro-
priate FAA Airports office.
[Doc. No. 26385, 56 FR 24278, May 29, 1991, as
amended by Amdt. 158–4, 72 FR 28849, May 23,
2007]
§ 158.45 Collection of PFC’s on tickets
issued in the U.S.
(a) On and after the charge effective
date, tickets issued in the U.S. shall in-
clude the required PFC except as pro-
vided in paragraphs (c) and (d) of this
section.
(1) Issuing carriers shall be respon-
sible for all funds from time of collec-
tion to remittance.
(2) The appropriate charge is the PFC
in effect at the time the ticket is
issued.
(3) Issuing carriers and their agents
shall collect PFCs based on the
itinerary at the time of issuance.
(i) Any change in itinerary initiated
by a passenger that requires an adjust-
ment to the amount paid by the pas-
senger is subject to collection or refund
of the PFC as appropriate.
(ii) Failure to travel on a nonrefund-
able or expired ticket is not a change
in itinerary. If the ticket purchaser is
not permitted any fare refund on the
unused ticket, the ticket purchaser is
not permitted a refund of any PFC as-
sociated with that ticket.
(b) Issuing carriers and their agents
shall note as a separate item on each
air travel ticket upon which a PFC is
shown, the total amount of PFC’s paid
by the passenger and the airports for
which the PFC’s are collected.
(c) For each one-way trip shown on
the complete itinerary of an air travel
ticket, issuing air carriers and their
agents shall collect a PFC from a pas-
senger only for the first two airports
where PFC’s are imposed. For each
round trip, a PFC shall be collected
only for enplanements at the first two
enplaning airports and the last two en-
planing airports where PFC’s are im-
posed.
(d) In addition to the restriction in
paragraph (c) of this section, issuing
carriers and their agents shall not col-
lect PFC’s from a passenger covered by
any of the other limitations described
in § 158.9(a).
(e) Collected PFC’s shall be distrib-
uted as noted on the air travel ticket.
(f) Issuing carriers and their agents
shall stop collecting the PFC’s on the
charge expiration date stated in a no-
tice from the public agency, or as re-
quired by the Administrator.
[Doc. No. 26385, 56 FR 24278, May 29, 1991, as
amended by Amdt. 158–2, 65 FR 34542, May 30,
2000; Amdt. 158–4, 72 FR 28849, May 23, 2007]
783
Federal Aviation Administration, DOT
§ 158.49
§ 158.47 Collection of PFC’s on tickets
issued outside the U.S.
(a) For tickets issued outside the
U.S., an air carrier or foreign air car-
rier may follow the requirements of ei-
ther § 158.45 or this section, unless the
itinerary is for travel wholly within
the U.S. Air carriers and foreign air
carriers must comply with § 158.45
where the itinerary is for travel wholly
within the U.S. regardless of where the
ticket is issued.
(b) Notwithstanding any other provi-
sions of this part, no foreign airline is
required to collect a PFC on air travel
tickets issued on its own ticket stock
unless it serves a point or points in the
U.S.
(c) If an air carrier or foreign air car-
rier elects not to comply with § 158.45
for tickets issued outside the U.S.—
(1) The carrier is required to collect
PFC’s on such tickets only for the pub-
lic agency controlling the last airport
at which the passenger is enplaned
prior to departure from the U.S.
(2) The carrier may collect the PFC
either at the time the ticket is issued
or at the time the passenger is last en-
planed prior to departure from the U.S.
The carrier may vary the method of
collection among its flights.
(3) The carrier shall provide a written
record to the passenger that a PFC has
been collected. Such a record shall ap-
pear on or with the air travel ticket
and shall include the same information
as required by § 158.45(b), but need not
be preprinted on the ticket stock.
(4) Issuing carriers and their agents
shall collect PFCs based on the
itinerary at the time of issuance.
(i) Any change in itinerary initiated
by a passenger that requires an adjust-
ment to the amount paid by the pas-
senger is subject to collection or refund
of the PFC as appropriate.
(ii) Failure to travel on a nonrefund-
able or expired ticket is not a change
in itinerary. If the ticket purchaser is
not permitted any fare refund on the
unused ticket, the ticket purchaser is
not permitted a refund of any PFC as-
sociated with that ticket.
(d) With respect to a flight on which
the air carrier or foreign air carrier
chooses to collect the PFC at the time
the air travel ticket is issued—
(1) The carrier and its agents shall
collect the required PFC on tickets
issued on or after the charge effective
date.
(2) The carrier is not required to col-
lect PFC’s at the time of enplanement
for tickets sold by other air carriers or
foreign air carriers or their agents.
(e) With respect to a flight on which
the air carrier or foreign air carrier
chooses to collect the PFC at the time
of enplanement, the carrier shall exam-
ine the air travel ticket of each pas-
senger enplaning at the airport on and
after the charge effective date and
shall collect the PFC from any pas-
senger whose air travel ticket does not
include a written record indicating
that the PFC was collected at the time
of issuance.
(f) Collected PFC’s shall be distrib-
uted as noted on the written record
provided to the passenger.
(g) Collecting carriers shall be re-
sponsible for all funds from time of col-
lection to remittance.
(h) Collecting carriers and their
agents shall stop collecting the PFC on
the charge expiration date stated in a
notice from the public agency, or as re-
quired by the Administrator.
[Doc. No. 26385, 56 FR 24278, May 29, 1991; 56
FR 37127, Aug. 2, 1991; Amdt. 158–4, 72 FR
28849, May 23, 2007]
§ 158.49 Handling of PFC’s.
(a) Collecting carriers shall establish
and maintain a financial management
system to account for PFC’s in accord-
ance with the Department of Transpor-
tation’s Uniform System of Accounts
and Reports (14 CFR part 241). For car-
riers not subject to 14 CFR part 241,
such carriers shall establish and main-
tain an accounts payable system to
handle PFC revenue with subaccounts
for each public agency to which such
carrier remits PFC revenue.
(b) Collecting carriers must account
for PFC revenue separately. PFC rev-
enue may be commingled with the air
carrier’s other sources of revenue ex-
cept for covered air carriers discussed
in paragraph (c) of this section. PFC
revenues held by an air carrier or an
agent of the air carrier after collection
are held in trust for the beneficial in-
terest of the public agency imposing
the PFC. Such air carrier or agent
784
14 CFR Ch. I (1–1–24 Edition)
§ 158.49
holds neither legal nor equitable inter-
est in the PFC revenues except for any
handling fee or interest collected on
unremitted proceeds as authorized in
§ 158.53.
(c)(1) A covered air carrier must seg-
regate PFC revenue in a designated
separate PFC account. Regardless of
the amount of PFC revenue in the cov-
ered air carrier’s account at the time
the bankruptcy petition is filed, the
covered air carrier must deposit into
the separate PFC account an amount
equal to the average monthly liability
for PFCs collected under this section
by such air carrier or any of its agents.
(i) The covered air carrier is required
to create one PFC account to cover all
PFC revenue it collects. The des-
ignated PFC account is solely for PFC
transactions and the covered air car-
rier must make all PFC transactions
from that PFC account. The covered
air carrier is not required to create
separate PFC accounts for each airport
where a PFC is imposed.
(ii) The covered air carrier must
transfer PFCs from its general ac-
counts into the separate PFC account
in an amount equal to the average
monthly liability for PFCs as the ‘‘PFC
reserve.’’ The PFC reserve must equal
a one-month average of the sum of the
total PFCs collected by the covered air
carrier, net of any credits or handling
fees allowed by law, during the past 12-
month period of PFC collections imme-
diately before entering bankruptcy.
(iii) The minimum PFC reserve bal-
ance must never fall below the fixed
amount defined in paragraph (c)(1)(ii)
of this section.
(iv) A covered air carrier may con-
tinue to deposit the PFCs it collects
into its general operating accounts
combined with ticket sales revenue.
However, at least once every business
day, the covered air carrier must re-
move all PFC revenue (Daily PFC
amount) from those accounts and
transfer it to the new PFC account. An
estimate based on
1
⁄
30
of the PFC re-
serve balance is permitted in substi-
tution of the Daily PFC amount.
(A) In the event a covered air carrier
ceases operations while still owing PFC
remittances, the PFC reserve fund may
be used to make those remittances. If
there is any balance in the PFC reserve
fund after all PFC remittances are
made, that balance will be returned to
the covered air carrier’s general ac-
count.
(B) In the event a covered air carrier
emerges from bankruptcy protection
and ceases to be a covered air carrier,
any balance remaining in the PFC re-
serve fund after any outstanding PFC
obligations are met will be returned to
the air carrier’s general account.
(v) If the covered air carrier uses an
estimate rather than the daily PFC
amount, the covered air carrier shall
reconcile the estimated amount with
the actual amount of PFCs collected
for the prior month (Actual Monthly
PFCs). This reconciliation must take
place no later than the 20th day of the
month (or the next business day if the
date is not a business day). In the
event the Actual Monthly PFCs are
greater than the aggregate estimated
PFC amount, the covered air carrier
will, within one business day of the
reconciliation, deposit the difference
into the PFC account. If the Actual
Monthly PFCs are less than the aggre-
gate estimated PFC amount, the cov-
ered air carrier will be entitled to a
credit in the amount of the difference
to be applied to the daily PFC amount
due.
(vi) The covered air carrier is per-
mitted to recalculate and reset the
PFC reserve and daily PFC amount on
each successive anniversary date of its
bankruptcy petition using the method-
ology described above.
(2) If a covered air carrier or its
agent fails to segregate PFC revenue in
violation of paragraph (c)(1) of this sec-
tion, the trust fund status of such rev-
enue shall not be defeated by an inabil-
ity of any party to identify and trace
the precise funds in the accounts of the
air carrier.
(3) A covered air carrier and its
agents may not grant to any third
party any security or other interest in
PFC revenue.
(4) A covered air carrier that fails to
comply with any requirement of para-
graph (c) of this section, or causes an
eligible public agency to spend funds to
recover or retain payment of PFC rev-
enue, must compensate that public
agency for those cost incurred to re-
cover the PFCs owed.
785
Federal Aviation Administration, DOT
§ 158.63
(5) The provisions of paragraph (b) of
this section that allow the commin-
gling of PFCs with other air carrier
revenue do not apply to a covered air
carrier.
(d) All collecting air carriers must
disclose the existence and amount of
PFC funds regarded as trust funds in
their financial statements.
[Doc. No. 26385, 56 FR 24278, May 29, 1991, as
amended by Amdt. 158–2, 65 FR 34542, May 30,
2000; Amdt. 158–4, 72 FR 28850, May 23, 2007]
§ 158.51 Remittance of PFC’s.
Passenger facility charges collected
by carriers shall be remitted to the
public agency on a monthly basis. PFC
revenue recorded in the accounting
system of the carrier, as set forth in
§ 158.49 of this part, shall be remitted to
the public agency no later than the
last day of the following calendar
month (or if that date falls on a week-
end or holiday, the first business day
thereafter).
§ 158.53 Collection compensation.
(a) As compensation for collecting,
handling, and remitting the PFC rev-
enue, the collecting air carrier is enti-
tled to:
(1) $0.11 of each PFC collected.
(2) Any interest or other investment
return earned on PFC revenue between
the time of collection and remittance
to the public agency.
(b) A covered air carrier that fails to
designate a separate PFC account is
prohibited from collecting interest on
the PFC revenue. Where a covered air
carrier maintains a separate PFC ac-
count in compliance with § 158.49(c), it
will receive the interest on PFC ac-
counts as described in paragraph (a)(2)
of this section.
(c)(1) Collecting air carriers may pro-
vide collection cost data periodically
to the FAA after the agency issues a
notice in the F
EDERAL
R
EGISTER
that
specifies the information and deadline
for filing the information. Submission
of the information is voluntary. The
requested information must include
data on interest earned by the air car-
riers on PFC revenue and air carrier
collection, handling, and remittance
costs in the following categories:
(i) Credit card fees;
(ii) Audit fees;
(iii) PFC disclosure fees;
(iv) Reservations costs;
(v) Passenger service costs;
(vi) Revenue accounting, data entry,
accounts payable, tax, and legal fees;
(vii) Corporate property department
costs;
(viii) Training for reservations
agents, ticket agents, and other de-
partments;
(ix) Ongoing carrier information sys-
tems costs;
(x) Ongoing computer reservations
systems costs; and
(xi) Airline Reporting Corporation
fees.
(2) The FAA may determine a new
compensation level based on an anal-
ysis of the data provided under para-
graph (c)(1) of this section, if the data
is submitted by carriers representing
at least 75 percent of PFCs collected
nationwide.
(3) Any new compensation level de-
termined by the FAA under paragraph
(c)(2) of this section will replace the
level identified in paragraph (a)(1) of
this section.
[Doc. No. FAA–2006–23730, 72 FR 28850, May
23, 2007; Amdt. 158–4, 72 FR 31714, June 8, 2007]
Subpart D—Reporting,
Recordkeeping and Audits
§ 158.61 General.
This subpart contains the require-
ments for reporting, recordkeeping and
auditing of accounts maintained by
collecting carriers and by public agen-
cies.
§ 158.63 Reporting requirements: Pub-
lic agency.
(a) The public agency must provide
quarterly reports to air carriers col-
lecting PFCs for the public agency
with a copy to the appropriate FAA
Airports Office. The quarterly report
must include:
(1) Actual PFC revenue received from
collecting air carriers, interest earned,
and project expenditures for the quar-
ter;
(2) Cumulative actual PFC revenue
received, interest earned, project ex-
penditures, and the amount committed
for use on currently approved projects,
including the quarter;
786
14 CFR Ch. I (1–1–24 Edition)
§ 158.65
(3) The PFC level for each project;
and
(4) Each project’s current schedule.
(b) The report shall be provided on or
before the last day of the calendar
month following the calendar quarter
or other period agreed by the public
agency and collecting carrier.
(c) For medium and large hub air-
ports, the public agency must provide
to the FAA, by July 1 of each year, an
estimate of PFC revenue to be col-
lected for each airport in the following
fiscal year.
[Doc. No. 26385, 56 FR 24278, May 29, 1991, as
amended by Amdt. 158–2, 65 FR 34542, May 30,
2000; Amdt. 158–4, 72 FR 28851, May 23, 2007]
§ 158.65 Reporting requirements: Col-
lecting air carriers.
(a) Each air carrier collecting PFCs
for a public agency must provide quar-
terly reports to the public agency un-
less otherwise agreed by the collecting
air carrier and public agency, providing
an accounting of funds collected and
funds remitted.
(1) Unless otherwise agreed by the
collecting air carrier and public agen-
cy, reports must state:
(i) The collecting air carrier and air-
port involved,
(ii) The total PFC revenue collected,
(iii) The total PFC revenue refunded
to passengers,
(iv) The collected revenue withheld
for reimbursement of expenses under
§ 158.53, and
(v) The dates and amounts of each re-
mittance for the quarter.
(2) The report must be filed by the
last day of the month following the
calendar quarter or other period agreed
by the collecting carrier and public
agency for which funds were collected.
(b) A covered air carrier must provide
the FAA with:
(1) A copy of its quarterly report by
the established schedule under para-
graph (a) of this section; and
(2) A monthly PFC account state-
ment delivered not later than the fifth
day of the following month. This
monthly statement must include:
(i) The balance in the account on the
first day of the month,
(ii) The total funds deposited during
the month,
(iii) The total funds disbursed during
the month, and
(iv) The closing balance in the ac-
count.
[Doc. No. FAA–2006–23730, 72 FR 28851, May
23, 2007]
§ 158.67 Recordkeeping and auditing:
Public agency.
(a) Each public agency shall keep any
unliquidated PFC revenue remitted to
it by collecting carriers on deposit in
an interest bearing account or in other
interest bearing instruments used by
the public agency’s airport capital
fund. Interest earned on such PFC rev-
enue shall be used, in addition to the
principal, to pay the allowable costs of
PFC-funded projects. PFC revenue may
only be commingled with other public
agency airport capital funds in deposits
or interest bearing instruments.
(b) Each public agency shall establish
and maintain for each approved appli-
cation a separate accounting record.
The accounting record shall identify
the PFC revenue received from the col-
lecting carriers, interest earned on
such revenue, the amounts used on
each project, and the amount reserved
for currently approved projects.
(c) At least annually during the pe-
riod the PFC is collected, held or used,
each public agency shall provide for an
audit of its PFC account. The audit
shall be performed by an accredited
independent public accountant and
may be of limited scope. The account-
ant shall express an opinion of the fair-
ness and reasonableness of the public
agency’s procedures for receiving, hold-
ing, and using PFC revenue. The ac-
countant shall also express an opinion
on whether the quarterly report re-
quired under § 158.63 fairly represents
the net transactions within the PFC
account. The audit may be—
(1) Performed specifically for the
PFC account; or
(2) Conducted as part of an audit
under Office of Management and Budg-
et Circular A–133 (the Single Audit Act
of 1984, Pub. L. 98–502, and the Single
Audit Act Amendments of 1996, Pub. L.
104–156) provided the auditor specifi-
cally addresses the PFC.
(3) Upon request, a copy of the audit
shall be provided to each collecting
carrier that remitted PFC revenue to
787
Federal Aviation Administration, DOT
§ 158.85
the public agency in the period covered
by the audit and to the Administrator.
[Doc. No. 26385, 56 FR 24278, May 29, 1991, as
amended by Amdt. 158–4, 72 FR 28851, May 23,
2007]
§ 158.69 Recordkeeping and auditing:
Collecting carriers.
(a) Collecting carriers shall establish
and maintain for each public agency
for which they collect a PFC an ac-
counting record of PFC revenue col-
lected, remitted, refunded and com-
pensation retained under § 158.53(a) of
this part. The accounting record shall
identify the airport at which the pas-
sengers were enplaned.
(b) Each collecting carrier that col-
lects more than 50,000 PFC’s annually
shall provide for an audit at least an-
nually of its PFC account.
(1) The audit shall be performed by
an accredited independent public ac-
countant and may be of limited scope.
The accountant shall express an opin-
ion on the fairness and reasonableness
of the carrier’s procedures for col-
lecting, holding, and dispersing PFC
revenue. The opinion shall also address
whether the quarterly reports required
under § 158.65 fairly represent the net
transactions in the PFC account.
(2) For the purposes of an audit under
this section, collection is defined as
the point when agents or other inter-
mediaries remit PFC revenue to the
carrier.
(3) Upon request, a copy of the audit
shall be provided to each public agency
for which a PFC is collected.
§ 158.71 Federal oversight.
(a) The Administrator may periodi-
cally audit and/or review the use of
PFC revenue by a public agency. The
purpose of the audit or review is to en-
sure that the public agency is in com-
pliance with the requirements of this
part and 49 U.S.C. 40117.
(b) The Administrator may periodi-
cally audit and/or review the collection
and remittance by the collecting car-
riers of PFC revenue. The purpose of
the audit or review is to ensure col-
lecting carriers are in compliance with
the requirements of this part and 49
U.S.C. 40117.
(c) Public agencies and carriers shall
allow any authorized representative of
the Administrator, the Secretary of
Transportation, or the Comptroller
General of the U.S., access to any of its
books, documents, papers, and records
pertinent to PFC’s
[Doc. No. 26385, 56 FR 24278, May 29, 1991, as
amended by Amdt. 158–2, 65 FR 34543, May 30,
2000]
Subpart E—Termination
§ 158.81 General.
This subpart contains the procedures
for termination of PFCs or loss of Fed-
eral airport grant funds for violations
of this part or 49 U.S.C. 40117. This sub-
part does not address the cir-
cumstances under which the authority
to collect PFCs may be terminated for
violations of 49 U.S.C. 47523 through
47528.
[Doc. No. FAA–2006–23730, 72 FR 28851, May
23, 2007]
§ 158.83 Informal resolution.
The Administrator shall undertake
informal resolution with the public
agency or any other affected party if,
after review under § 158.71, the Admin-
istrator cannot determine that PFC
revenue is being used for the approved
projects in accordance with the terms
of the Administrator’s approval to im-
pose a PFC for those projects or with 49
U.S.C. 40117.
[Doc. No. 26385, 56 FR 24278, May 29, 1991, as
amended by Amdt. 158–2, 65 FR 34543, May 30,
2000]
§ 158.85 Termination of authority to
impose PFC’s.
(a) The FAA begins proceedings to
terminate the public agency’s author-
ity to impose a PFC only if the Admin-
istrator determines that informal reso-
lution is not successful.
(b) The Administrator publishes a no-
tice of proposed termination in the
F
EDERAL
R
EGISTER
and supplies a copy
to the public agency. This notice will
state the scope of the proposed termi-
nation, the basis for the proposed ac-
tion and the date for filing written
comments or objections by all inter-
ested parties. This notice will also
identify any corrective actions the
public agency can take to avoid further
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.
790
14 CFR Ch. I (1–1–24 Edition)
Pt. 161
9. Standards and specifications. It will
carry out the project in accordance with
FAA airport design, construction and equip-
ment standards and specifications contained
in advisory circulars current on the date of
project approval.
10. Recordkeeping and Audit. It will main-
tain an accounting record for audit purposes
for 3 years after physical and financial com-
pletion of the project. All records must sat-
isfy the requirements of 14 CFR part 158 and
contain documentary evidence for all items
of project costs.
11. Reports. It will submit reports in ac-
cordance with the requirements of 14 CFR
part 158, subpart D, and as the Administrator
may reasonably request.
12. Compliance with 49 U.S.C. 47523 through
47528. It understands 49 U.S.C. 47524 and 47526
require that the authority to impose a PFC
be terminated if the Administrator deter-
mines the public agency has failed to comply
with those sections of the United States
Code or with the implementing regulations
published under the Code.
[Doc. No. 26385, 56 FR 24278, May 29, 1991, as
amended by Amdt. 158–2, 65 FR 34543, May 30,
2000; Amdt. 158–4, 72 FR 28851, May 23, 2007]
PART 161—NOTICE AND AP-
PROVAL OF AIRPORT NOISE AND
ACCESS RESTRICTIONS
Subpart A—General Provisions
Sec.
161.1
Purpose.
161.3
Applicability.
161.5
Definitions.
161.7
Limitations.
161.9
Designation of noise description meth-
ods.
161.11
Identification of land uses in airport
noise study area.
Subpart B—Agreements
161.101
Scope.
161.103
Notice of the proposed restriction.
161.105
Requirements for new entrants.
161.107
Implementation of the restriction.
161.109
Notice of termination of restriction
pursuant to an agreement.
161.111
Availability of data and comments
on a restriction implemented pursuant to
an agreement.
161.113
Effect of agreements; limitation on
reevaluation.
Subpart C—Notice Requirements for Stage
2 Restrictions
161.201
Scope.
161.203
Notice of proposed restriction.
161.205
Required analysis of proposed re-
striction and alternatives.
161.207
Comment by interested parties.
161.209
Requirements for proposal changes.
161.211
Optional use of 14 CFR part 150 pro-
cedures.
161.213
Notification of a decision not to im-
plement a restriction.
Subpart D—Notice, Review, and Approval
Requirements for Stage 3 Restrictions
161.301
Scope.
161.303
Notice of proposed restrictions.
161.305
Required analysis and conditions for
approval of proposed restrictions.
161.307
Comment by interested parties.
161.309
Requirements for proposal changes.
161.311
Application procedure for approval
of proposed restriction.
161.313
Review of application.
161.315
Receipt of complete application.
161.317
Approval or disapproval of proposed
restriction.
161.319
Withdrawal or revision of restric-
tion.
161.321
Optional use of 14 CFR part 150 pro-
cedures.
161.323
Notification of a decision not to im-
plement a restriction.
161.325
Availability of data and comments
on an implemented restriction.
Subpart E—Reevaluation of Stage 3
Restrictions
161.401
Scope.
161.403
Criteria for reevaluation.
161.405
Request for reevaluation.
161.407
Notice of reevaluation.
161.409
Required analysis by reevaluation
petitioner.
161.411
Comment by interested parties.
161.413
Reevaluation procedure.
161.415
Reevaluation action.
161.417
Notification of status of restrictions
and agreements not meeting conditions-
of-approval criteria.
Subpart F—Failure To Comply With This Part
161.501
Scope.
161.503
Informal resolution; notice of appar-
ent violation.
161.505
Notice of proposed termination of
airport grant funds and passenger facil-
ity charges.
A
UTHORITY
: 49 U.S.C. 106(g), 47523–47527,
47533.
S
OURCE
: Docket No. 26432, 56 FR 48698,
Sept. 25, 1991, unless otherwise noted.
Subpart A—General Provisions
§ 161.1 Purpose.
This part implements the Airport
Noise and Capacity Act of 1990 (49