The FAA announced it opened the application process for funds from the Airport Terminal Program (ATP) created under the Bipartisan Infrastructure Law.
The $1 billion available this year allows U.S. airports a generational opportunity to upgrade their facilities with an emphasis on enhancements primarily overlooked by the Airport Improvement Program (AIP)
Peter Hughes, a Senior Aviation Engineer with RS&H, breaks down some of the main points airports need to know about how the ATP can help them.
How are the ATP Standards Different Compared to AIP?
The traditional AIP program uses a National Priority Ranking (NPR) for capital projects. The FAA uses a formula to calculate an individual project "value" that can be compared to other airport projects around the country. In theory, this allows the FAA to objectively provide funding for a project based upon the FAA's current goals and objectives.
Terminal projects typically score very low with the majority of funding going to airfield and safety related projects. What's unique about the Airport Terminal Program (ATP) is the FAA has set aside discretionary money to distribute specifically for terminal projects. With the new infrastructure bill, Congress and The President have created new goals and objectives for the FAA to distribute this money.
Which Airports Benefit Most from Applying for the Initial Round of funding?
All National Plan of Integrated Airport System (NPIAS) airports can benefit from ATP funds. The $5 billion program will distribute approximately $1 billion a year for the next 5 years. Congress created allocations based specifically on an airports size.
- Not more than 55% for Large Hubs (80% federal share)
- Not more than 15% for Medium Hubs (80% federal share)
- Not more than 20% for Small Hubs (95% federal share)
- And not less than 10% for Nonhub and Nonprimary (95% federal share)
Even the smallest airports have the ability to compete for at least $100 Million a year in ATP funds.
What Opportunities Does ATP Open that AIP May Not Have Allowed?
One unique provision of the new funding is the extension of AIP eligibility to include Passenger Facility Charge (PFC) eligibility. The added flexibility will allow the ATP funds to potentially pay for an even larger portion of a terminal project. In addition, the program specifically identifies on-airport rail access and airport-owned Air Traffic Control Towers as eligible projects.
Will the Bidding Process be Different Compared to AIP Funded Projects?
As identified in other recent funding programs, AIP grant requirements, including standard assurances, still apply. An airport needs to reference 2 CFR Part 200 for all procurement methods but be sure to reference State and Local procurement regulations that may be more restrictive.
Is this Funding Geared Towards New Terminal Construction or Existing Terminal Upgrades?
Both types of projects can compete well. The FAA has always viewed capacity to be a strong justification for capital projects - this can help justify building replacements and expansions. The ATP also places a strong emphasis on upgrading aging infrastructure and improving energy efficiency. Because of the difference in cost of replacing/expanding terminals vs. upgrading, expect a higher chance of success by targeting upgrades.
What Aspects Should Airports put Emphasis on When Applying for ATP Funds?
ATP has a very unique set of goals and objectives. Pay close attention as some of these objectives are not typically as important to the FAA. While the Infrastructure Bill mentions the importance of projects that:
- Increase capacity and passenger access
- Replace aging infrastructure
- Achieve compliance with the Americans for Disabilities Act (ADA), including expand accessibility for persons with disabilities.
- Improve airport access for historically disadvantaged populations
- Improve energy efficiency including upgrading environmental systems, upgrading plant facilities, and achieving Leadership in Energy and Environmental Design (LEED) accreditation standards
- Improve airfield safety through terminal relocation
The Bill also indicates a preference for projects that complete a development objective (vs. just a portion of a project) even if the project must be phased over multiple years.
Also very important: Pay attention to the recent Executive Orders that establish and advance specific goals for the federal government.
All of these elements need to be combined to tell a compelling story to the FAA. Be creative.
