[Federal Register Volume 75, Number 146 (Friday, July 30, 2010)]
[Notices]
[Pages 44998-45007]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-18731]
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DEPARTMENT OF TRANSPORTATION
[Docket: DOT-OST-2010-0124]
Office of the Secretary: Notice of Order Soliciting Community
Proposals
AGENCY: Department of Transportation.
ACTION: Notice of Order Soliciting Community Proposals (Order 2010-7-
16, Docket: DOT-OST-2010-0124).
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SUMMARY: The Department of Transportation is soliciting proposals from
communities or consortia of communities interested in receiving a grant
under the Small Community Air Service Development Program. The full
text of the Department's order is attached to this document. There are
two mandatory requirements for filing of applications, both of which
must be completed for a community's application to be deemed timely and
considered by the Department. The first requirement is the submission
of the community's proposal, as described below; the second requirement
is the filing of SF424 through http://www.grants.gov.
DATES: Grant Proposals as well as the SF424 should be submitted no
later than August 27, 2010.
ADDRESSES: Interested parties can submit applications and the SF424
electronically through http://www.grants.gov.
FOR FURTHER INFORMATION CONTACT: Aloha Ley, Office of Aviation
Analysis, 1200 New Jersey Ave., SE., W86-310, Washington, DC 20590,
(202) 366-2347.
Dated: July 23, 2010.
Notice of Order Soliciting Community Proposals
AGENCY: Department of Transportation, Office of the Secretary.
ACTION: Notice of Order Soliciting Community Proposals (Order 2010-7-
16).
Overview
By this order, the Department invites proposals from communities
and/or consortia of communities interested in obtaining a federal grant
under the Small Community Air Service Development Program (Small
Community Program) to address air
[[Page 44999]]
service and airfare problems in their communities. Proposals, including
a completed ``Summary Information'' schedule as shown in Appendix B of
this order, must be submitted in the above-referenced docket no later
than 5 p.m., Eastern Daylight Time (EDT), on August 27, 2010.
The Small Community Program was established under the Wendell H.
Ford Aviation Investment and Reform Act for the 21st Century (AIR-21),
Public Law 106-181, and reauthorized under the Vision 100-Century of
Aviation Reauthorization Act, Public Law 108-176 (Vision 100). The
program is designed to provide financial assistance to small
communities to help them enhance their air service. The Department
provides this assistance in the form of financial grants that are
disbursed on a reimbursable basis.\1\ The FY 2010 Federal Aviation
Administration Extension Act (Pub. L. 111-69) extends the authorization
of appropriations through FY 2010. The Department was appropriated $6
million to carry out the Small Community Program.\2\ However, the
Department will make $7 million available for grant awards.\3\
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\1\ For detailed background on the Small Community Program, see
our Web site at: http://ostpxweb.dot.gov/aviation/X-50%20Role_files/smallcommunity.htm.
\2\ Program funding for this year may be affected by a provision
that directs the Secretary to transfer funds from any program within
or administered by the Office of the Secretary to the Essential Air
Service program if that program does not have sufficient funds to
meet its statutory obligations. In addition, a portion of the funds
available for the Small Community Program are used by the Department
for grants-management purposes. As of June, Congress appropriated
$4,980,000 of the $6 million in funding; however, the remaining
$1,020,000 is expected to be appropriated in the next
reauthorization bill. If funds are not authorized by the time
selections are made, grant funds will remain at the $4,980,000
level.
\3\ The Department will be adding additional funds that can be
reallocated from prior year recoveries.
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The program is limited to a maximum of 40 grant awards, with a
maximum of four grants per State, in each year the program is funded.
There are no limits on the amounts of individual awards, and the
amounts awarded will vary depending upon the features and merits of the
proposals selected. Over the past nine years, the Department's
individual grants have ranged from $20,000 to nearly $1.6 million.
Authorized grant projects may include activities that extend over a
multi-year period under a single grant award; however, because there is
a priority established by statue for communities and consortia that
show that they can use the assistance ``in a timely fashion,''
applicants are advised to consider that criterion in making their
proposals.
Applicants must first register with http://www.grants.gov before
submitting an Application for Federal Domestic Assistance (SF424), a
standard federal government grant application form, and must include
their proposals as an attachment to the SF424. An application will not
be deemed complete until and unless all required materials are filed by
the August 27, 2010, deadline. Communities are reminded to register
with Grants.gov early in the application period since the mandatory
Grants.gov registration process can take up to three weeks to complete.
Tutorials and other guidance for completing the required registration
and application procedures are available at the ``Applicant Resources''
page of Grants.gov.\4\
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\4\ See http://www07.grants.gov/applicants/app_help_reso.jsp.
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Eligibility Information
Who is eligible to apply for a grant?
Basic criteria. Eligible applicants are those communities that (1)
are served by an airport that was not larger than a small hub airport
for calendar year 1997,\5\ and (2) have insufficient air service or
unreasonably high airfares. Communities that do not currently have
commercial air service are also eligible, but they must have met or be
able to meet in a reasonable period all necessary requirements of the
Federal Aviation Administration for the type of service involved in
their grant proposals. Communities served by medium and large hubs are
not eligible to apply.
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\5\ The hub classifications are based on the Federal Aviation
Administration's CY 1997 enplanement data.
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Essential Air Service communities may apply. Small communities that
meet the basic criteria and currently receive subsidized air service
under the Essential Air Service (EAS) program are eligible to apply for
funds under the Small Community Program. Indeed, a number of EAS-
subsidized communities applied in past years and some have received
grant awards. However, grant awards to EAS-subsidized communities are
limited to marketing or promotion projects that support existing or
newly subsidized air services. Grant funds will not be authorized for
EAS-subsidized communities to support any new competing air service.
Furthermore, no funds will be authorized to support additional flights
by EAS carriers or changes to those carriers' existing schedules. These
restrictions are necessary to avoid conflicts with the EAS program.
Additional consideration for communities/members of consortia that have
previously received a grant. Communities or members of a consortia that
were awarded grants in previous years and want to apply for a grant
this year should be aware that (1) they are precluded from seeking new
funds for projects for which they have already received an award under
the Small Community Program and (2) they cannot accept a new grant
while they are a party to an existing grant under the program, either
as an individual community or as a member of a consortium.
Grant must be for a new project. No community may participate in
the program in support of the same project more than once. 49 U.S.C.
41743(c)(4). In assessing whether a previous grantee's current proposal
represents a new project, we would compare the goals and objectives of
the earlier grant, including the key components of the means by which
those goals and objectives were to be achieved, to the current
proposal. For example, if a community received an earlier grant to
support a revenue guarantee for service to a particular destination or
direction, a new application for another revenue guarantee for the same
service would be disqualified under Sec. 41743(c), even if the revenue
guarantee were structured differently or the type of carrier were
different. However, we do not read Sec. 41743(c) to disqualify a new
application for service to a new destination or direction using a
revenue guarantee, or for general marketing of the airport and the
various services it offers. We recognize that not all revenue
guarantees, marketing agreements, equipment purchases, etc. are of the
same nature, and that if a subsequent proposal incorporates different
goals or significantly different components, it may be sufficiently
different to constitute a new project under Sec. 41743(c).
In its application, a community that is a previous grant recipient
should compare and contrast its proposed project with its previously
funded one(s) to demonstrate why its latest proposal represents a new
project. Communities should also note that in each of the prior eight
years of the program, interest in participation exceeded both the funds
available and the number of communities that could take part in any one
year. For this reason, the fact that a community has already received
one or more grants will be a consideration when comparing its new
proposal with those of other applicant communities.
No concurrent grants are permitted. A community or member of a
consortia may participate in the program a subsequent time only after
its
[[Page 45000]]
participation in a prior grant has terminated. 49 U.S.C. 41743(c)(4).
Simply stated, a community can have only one Small Community Program
grant at any time. If a grant applicant is applying for a subsequent
grant and its current grant has not yet expired, it must notify the
Department of its intent to terminate the current grant prior to
entering into the new grant. In addition, for grant applicants that are
members of a consortia grant, permission must be granted from both the
grant sponsor and the Department to withdraw from the current grant
prior to being eligible to receive a subsequent grant.
Subsidies for a carrier to compete against an incumbent raise
concerns. The Department is reluctant to subsidize one carrier but not
others in a competitive market. For this reason, communities that
propose to use the grant funds for service in a city-pair market that
is already served by a carrier must explain in detail why the existing
service is insufficient or unsatisfactory, or provide other compelling
information to support such proposals. This information is necessary
for the Department to consider the competitive implications of giving
financial or other tangible incentives for one carrier that the other
carrier is not receiving.
Subsidy proposals should reflect market analysis and a
complementary marketing commitment. A thorough understanding of the
target market is essential for the ultimate success of new or expanded
air service. Likewise, the chances that such a service will become
self-sustaining are enhanced when its implementation is supported by a
well-designed marketing campaign. For these reasons, communities
requesting funds for a revenue guarantee/subsidy/financial incentive
are encouraged to include in their proposals an in-depth analysis
evidencing close familiarity with their target markets. Such
communities also are encouraged to designate in their proposals a
portion of their requested funds for the development and implementation
of a marketing plan in support of the service sought.
A consortium is more than a collection of communities. The statute
permits individual communities and consortia of communities to apply
for grant awards under this program. In some instances in the past,
several communities in a State have filed a single application as a
``consortium,'' but in effect the application was a collection of
individual community requests involving different projects. We do not
view this as a consortium. Rather, an application representing a
consortium would be one that facilitates efforts of communities working
together toward a joint grant project. For example, several communities
surrounding an airport may apply together to improve air services at
that airport, or surrounding airports may work together to provide
regional air service.
Multiple applications by a community will not be considered. The
Department requests that communities file only one application for a
grant. In the past, some communities have filed both individual
applications and applications as part of a consortium. In many cases
these applications have involved the same project at the same or
different funding levels. We will not consider the stand-alone
application if a community is also submitting a largely identical
request as part of a consortium. To the extent that a community files
separately and as part of a consortium for complementary projects--for
example, one for a revenue guarantee and one for marketing--we will
consider such proposals. However, communities should be aware that they
can receive only one grant, either the stand-alone grant or as a member
of a consortium, because no community can have concurrent grants.
Cost Sharing and Local Contributions Are Important Factors
The statute does not require communities to contribute toward a
grant project, but those communities that contribute from local sources
other than airport revenues are accorded priority consideration. One
core objective of the Small Community Program is to promote community
involvement in addressing air service/air fare issues through public/
private partnerships. As a financial stakeholder in the process, the
community gains greater control over the type, quality, and success of
the air service initiatives that will best meet its needs, and
demonstrates a greater commitment towards achieving the stated goals.
The Department has historically received many more applications than
can be accommodated and nearly all of those applications have proposed
a community financial contribution to the project. Thus, proposals that
propose a community financial contribution will be given priority
consideration.
Types of contributions. Contributions should represent a new
financial commitment or new financial resources devoted to attracting
new or improved service, or addressing specific high-fare or other
service issues, such as improving patronage of existing service at the
airport. Contributions from already-existing programs or projects
(e.g., designating a portion of an airport's existing annual marketing
budget to the project) are considered less favorably than contributions
for new and innovative programs or projects. For those communities that
propose to contribute to the grant project, that contribution can be in
the following forms:
Cash from non-airport revenues. A cash contribution can include
funds from the State, the County or the local government, and/or from
local businesses, or other private organizations in the community.
Contributions that are comprised of intangible non-cash items, such as
the ``value'' of donated advertising, are considered ``in-kind''
contributions (see further discussion below).
Cash from airport revenues. This includes contributions from funds
generated by airport operations. Airport revenues may not be used for
revenue guarantees to airlines.\6\ Community proposals that include
local contributions based on airport revenues do not receive priority
consideration for selection.
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\6\ 49 U.S.C. 47107, 47133.
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In-kind contributions from the airport. This can include such items
as waivers of landing fees, terminal rents, fuel fees, and/or vehicle
parking fees.
In-kind contributions from the community. This can include such
items as donated advertising from media outlets, catering services for
inaugural events, or in-kind trading, such as advertising in exchange
for free air travel. Travel banks and travel commitments/pledges are
considered to be in-kind contributions,\7\ as are reduced fares offered
by airlines.
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\7\ A travel ``bank'' involves the actual deposit of funds from
participating parties (e.g., businesses, individuals) into a
designated bank account for the purpose of purchasing air travel on
the selected airline, with defined procedures for the subsequent use
or withdrawal of those funds under an agreement with the airline.
Often, however, what communities refer to as a travel ``bank'' in
reality involves travel ``pledges'' from businesses in the community
without any collection of funds or formal procedures for use of the
funds. As with other types of in-kind contributions, the Department
views travel banks and pledges included in grant proposals as an
indicator of local community support.
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Cash vs. in-kind contributions. Only local contributions made in
cash are given priority consideration for selection. Contributions made
in-kind or through other services may be valuable in helping to promote
the objectives of the application, they are not afforded priority in
the selection process.
Financial commitments must be fulfilled. Applicant communities
should note that, as part of the grant agreement between the Department
and the community, the community has legally committed itself to
fulfilling its
[[Page 45001]]
proposed financial contribution to the project and that its failure to
meet this commitment could lead the Department to terminate the grant.
Community participation in all aspects of the proposal, including the
financial aspects, is critical to the success of the authorized project
initiative. As with the grant awards in past years, receipt of the full
federal contribution awarded will thus be linked to the community's
fulfillment of its financial contribution. Furthermore, communities
cannot propose a certain level of cash contribution from non-airport
sources, and subsequent to being awarded a grant, seek to substitute or
replace that contribution with either ``in-kind'' contributions or
contributions from airport revenues, or both. Given the statute's
priority for contributions from non-airport sources and the competitive
nature of the selection process, a community's grant award could be
reduced or terminated altogether if it is unable to replace the
committed funds from non-airport revenue sources.
Reimbursements for Advance Payments: The Small Community Program is
a reimbursable program therefore communities are required to make
advance payments for funds expended in association with the project
implementation under the program and then seek reimbursement.
Reimbursement rates are calculated as a percentage of the total Federal
funds requested divided by the Federal fund plus the local cash
contribution (which is not refundable). Advance payments in forms other
than cash (e.g. in-kind) are not reimbursable. If there is any question
about whether a proposed payment would be considered as ``in-kind'' or
cash, the applicant should contact the Department before submitting its
proposal.
Application and Submission Information
Filing Deadline and Procedures
Grant applications are due by 5 p.m. EDT on August 27, 2010. As
part of the submission process, an applicant must register as a grant
applicant at http://www.grants.gov and complete the Application for
Federal Domestic Assistance form SF424. An applicant must also include
its grant proposal, including a completed ``Summary Information''
schedule (see Appendix B), as an attachment to its SF424. In addition,
the cover page of each application should contain the information
specified under ``Cover page contents,'' below. Questions regarding the
program should be directed to the Office of Aviation Analysis on (202)
366-2347 or [email protected].
SF424. Communities not previously registered are encouraged to
register with Grants.gov early during the application period because
the registration and SF424 application process required by http://www.grants.gov can take up to three weeks to complete. A community may
file its proposal anytime after the initial registration process has
been completed on http://www.grants.gov as long as the entire
application is filed by August 27, 2010. Communities are encouraged to
contact the Grants.gov help desk for any technical assistance in filing
their applications.
The Grants.gov ``Applicant Resources'' page (http://www07.grants.gov/applicants/app_help_reso.jsp) provides instructions
and guidance on completing the registration and application processes.
Further, grant proposals must be submitted as an attachment to the
SF424. An application will NOT be deemed complete and will be
ineligible for a grant award unless the SF424 and the attached proposal
(including the completed ``Summary Information'' schedule) have been
submitted through Grants.gov by the 5 PM EDT, August 27, 2010,
deadline.
Cover page contents. The cover page for all applications should
bear the title ``Proposal Under the Small Community Air Service
Development Program, Docket DOT-OST-2010-0124'' and should include:
(1) The name of the community or consortium of communities applying
for the grant;
(2) The legal sponsor and its Dun and Bradstreet (D&B) Data
Universal Numbering System (DUNS) number, including + 4; and
(3) The 2-digit Congressional district code applicable to the
sponsoring organization and, if a consortium, to each participating
community.
Confidential treatment of information. Applicants will be able to
provide certain information relevant to their proposals on a
confidential basis. Under the Department's Freedom of Information Act
regulations (49 CFR 7.17), such information is limited to commercial or
financial information that, if disclosed, would either likely cause
substantial harm to the competitive position of a business or
enterprise or make it more difficult for the Federal Government to
obtain similar information in the future.
Applicants seeking confidential treatment of a portion of their
applications must segregate the confidential material in a sealed
envelope marked ``Confidential Submission of X (the applicant) in
Docket DOT-OST-2010-0124,'' and include with that material a request in
the form of a motion seeking confidential treatment of the material
under 14 Sec. CFR 302.12 (Rule 12) of the Department's regulations.
The applicant should submit an original and two copies of its motion
and an original and two copies of the confidential material in the
sealed envelope. The confidential material should not be included with
the original of the applicant's proposal that is submitted via http://www.grants.gov. The applicant's original submission, however, should
indicate clearly where the confidential material would have been
inserted. If an applicant invokes Rule 12, the confidential portion of
its filing will be treated as confidential pending a final
determination. All confidential material must be received by August 27,
2010, and delivered to the Office of Aviation Analysis, 8th Floor, Room
W86-310, 1200 New Jersey Ave., SE., Washington, DC 20590.
Types of Projects and Application Content
The statute is very general about the types of projects that can be
authorized so that communities are provided flexibility in addressing
their particular air service and airfare issues. Because circumstances
may differ among communities, applicants have some latitude in
identifying their own objectives and developing strategies for
accomplishing them.
One objective of the Small Community Program is to help communities
secure enhancements that will be responsive to their air
transportation/air fare needs on a long-term basis after the financial
support of the grant has ended. There are many ways that a community
might enhance its current air service or attract new service, such as:
Promoting awareness among residents of locally available
service;
Attracting a new carrier through revenue guarantees or
operating cost offsets;
Attracting new forms of service, such as on-demand air
taxi service;
Offering an incumbent carrier financial or other
incentives to lower its fares, increase its frequencies, add new
routes, or deploy more suitable aircraft, including upgrading its
equipment from turboprops to regional jets;
Combining traffic support from surrounding communities
with regionalized service through one airport; or
Providing local ground transportation service to improve
access
[[Page 45002]]
to air service to the community and the surrounding area.\8\
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\8\ These examples are illustrative only and are not meant as a
list of projects favored by the Department. Interested communities
can view actual proposals submitted in prior years. Go to http://www.regulations.gov and, under ``Search,'' enter one of the
following depending on the desired filing year: DOT-OST-2002-11590,
DOT-OST-2003-15065, DOT-OST-2004-17343, DOT-OST-2005-20127, DOT-OST-
2006-23671; DOT-OST-2007-27370 and DOT-OST-2008-0100, DOT-OST-2009-
0149 for proposals filed in 2002, 2003, 2004, 2005, 2006, 2007, 2008
and 2009, respectively.
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Communities are encouraged to be innovative and to consider a wide
range of initiatives and air transportation services in developing
their proposals, such as intermodal or regional solutions. At the same
time, proposals must not be general, vague, or unsupported. The more
highly defined and focused the proposal, the more competitive it will
be, particularly in light of the priority consideration afforded by the
statute to those applicants that can use the funds in a timely manner.
49 U.S.C. 41743(c)(5)(E).
There is no set format that must be used in submitting grant
proposals. At a minimum, however, a proposal must provide the following
information:
A description of the community's existing air service,
including the carrier(s) providing service, service frequency, nonstop
destinations offered, fares, and equipment types.
A synopsis of the community's historical service,
including destinations, traffic levels, service providers, and any
extenuating factors that might have affected traffic in the past or
that can be expected to influence service needs in the near to
intermediate term.
A description of the community's air service development
efforts over the past five years and the results of those efforts. Many
communities have been active on an on-going basis for many years in air
service development efforts, while others are just beginning. To the
extent that a community has previously engaged in other air service
initiatives, including through public/private partnerships, it should
describe those efforts and their results in its grant proposal. The
description should include marketing and promotional efforts of airport
services as well as efforts to recruit additional or improved air
service and airfare initiatives.
A description of the community's air service needs or
deficiencies. A community should submit any information about (1) major
origin/destination markets that are not now served or are not served
adequately, and (2) fare levels that the community deems relevant to
consideration of its grant request, including market analyses or
studies demonstrating an understanding of local air service needs.
A strategic plan for meeting those needs under the Small
Community Program, including the community's specific project goal(s)
and detailed plan for attaining such goal(s). Plans should:
[check] Clearly identify the target audience of each component of the
proposed transportation initiative, including all advertising and
promotional efforts.
[check] Set forth a realistic timetable for implementation of the grant
project including a timeline chart. Because the statute includes timely
use of the grant funds as a priority consideration, a community must
have a well-developed project plan and a detailed timetable for
implementing that plan. In establishing the timetable, however, the
community should be realistic about its ability to meet its project
deadlines.\9\
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\9\ The projected timetable will be an integral part of the
grant agreements between the selected communities and the
Department. Therefore, there is no advantage to a community in
proposing an aggressive timetable that cannot be met, and there may
be disadvantages if the community finds that it cannot meet its
timetable or if its timeline is deemed unrealistic. Communities
should carefully consider all factors affecting implementation of
their projects and develop realistic timeframes for achieving those
objectives.
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[check] For proposals involving new or improved service, explain how
the service will become self-sufficient. Under the statute, a community
cannot seek grant funding in subsequent years in support of the same
project. Moreover, in developing a proposal, it is important that a
community seriously consider the scale of its proposed project and the
timetable for achieving the stated goals. To the extent that a proposed
project is dependent upon or relevant to the completion of other
federally funded capital improvement projects, the community should
provide a description of, and the construction time-line for, those
projects, keeping in mind the statutory requirement to use Small
Community Program funding in a timely manner.
[check] Fully and clearly outline the goals and objectives sought to be
achieved; e.g., ``to broaden the awareness by residents in the Tri-
County area of the various services provided by passenger carriers at
the Tri-County airport,'' or ``to obtain new and affordable service to
a hub airport in a direction where there is no such service.'' When an
application is selected, these goals and objectives will be
incorporated into the grant agreement and define its basic project
scope. Once an agreement is signed, if circumstances change and an
amendment is sought to allow for different activities or a different
approach, the Department will look to whether the change being sought
is consistent with those fundamental project goals and objectives.
Proposed changes that would alter those fundamental goals and
objectives cannot be authorized, because doing so would undermine the
competitive nature of the selection process. Applicants are also
encouraged to include in their proposals alternative or back-up
strategies for achieving their desired goals and objectives. By
incorporating such information into the grant agreement, desired
changes may be accommodated.
[check] If the applicant received a Small Community Program grant in
the past, explain how its proposed project differs from its earlier one
by comparing and contrasting project goals, objectives and methods of
achieving them.
A description of any public-private partnership that will
participate in the project. Full community involvement is a key aspect
of the Small Community Program. The statute gives a priority to those
communities that already have established, or will establish, a public-
private partnership to facilitate air service to the public. The
proposal should fully describe the public-private partnership that will
participate in the community's proposal and how the partnership will
actively participate in the implementation of the proposed project. In
addition, applicants should identify each member of the partnership,
the role that each will play, and the specific responsibilities of each
member in project implementation. If the application does not include
specific information on the partnership participation in the project,
the Department will not be able to evaluate how well a community has
met this consideration, and the applicant will not be deemed to have
met this priority consideration in the Department's evaluation of the
community's proposal.
A detailed description of the funding necessary for
implementation of the community's project, including the federal and
non-federal contributions. Proposals should clearly identify the level
of federal funding sought. They should also clearly identify the
community's cash contributions to the proposed project, ``in-kind''
contributions from the airport, and ``in-kind'' contributions from the
community. Cash contributions from
[[Page 45003]]
airport revenues should be identified separately from cash
contributions from other community sources. Similarly, cash
contributions from the State and/or local government should be
separately identified and described.
Applicant communities should be aware that, if awarded a grant, the
Department will not reimburse the community for pre-award expenses such
as the cost of preparing the grant application or for any expenses
incurred prior to the community executing a grant agreement with the
Department. In addition, ten percent of the grant funds will be
withheld until the Department receives the final report of the grant
project. See ``Award Administration Information,'' below.
An explanation of how the community will ensure that its
own funding contribution is spent in the manner proposed.
Descriptions of how the community will monitor the
progress of the grant project and the identity of critical milestones
to be met during the life of the grant, including the need to modify or
discontinue funding if identified milestones cannot be achieved. This
is an important component of the community's proposal and serves to
demonstrate the thoroughness of the community's planning of the
proposed grant project.
A description of how the community plans to continue with
the project if it is not self-sustaining after the grant award expires.
A particular goal of the Small Community Program is to provide long-
term, self-sustaining improvements to air service at small communities.
A community cannot seek further grant funding in support of the same
project. 49 U.S.C. 41743(c)(4). It is possible that new or improved
service at a community will be well on its way to becoming self-
sustaining, but not have reached that goal before the grant expires.
Similarly, it is possible that extensive marketing and promotional
efforts may be in process, but not have been completed at the end of
the grant period and will require continued support.\10\ Therefore, in
developing its proposal, the community should carefully consider and
describe in detail its plans for providing continued financial support
for the project after the grant funding is no longer available. This
aspect of the application reflects on the community's commitment to the
grant project and is an important component to the Department's
consideration of the community's proposal for selection for a grant
award.
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\10\ Project implementation costs are reimbursable from grant
funds only for services or property delivered during the grant term.
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Designation of a legal sponsor responsible for
administering the program. The legal sponsor of the grant project must
be a government entity. If the applicant is a public-private
partnership, a public government member of the organization must be
identified as the community's sponsor to receive program
reimbursements. In this regard, communities can designate only a single
government entity as the legal sponsor, even if applying as a
consortium that consists of two or more local government entities.
Private organizations cannot be designated as the legal sponsor of a
grant under the Small Community Program.\11\
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\11\ The community has the responsibility to ensure that the
recipient of any funding has the legal authority under State and
local laws to carry out all aspects of the grant.
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Air Service Development Zone Designation
The statute authorizing the Small Community program also provides
that the Department will designate one of the grant recipients in the
program as an Air Service Development Zone (ASDZ). A current grant
recipient--with its grant award period extending into FY2011--remains
active as the ASDZ designee. As a result, at this time the Department
is not soliciting applications for selection as an ASDZ designee.
Application Review Information
The Department will carefully review each proposal, and the staff
may contact applicants if clarification is needed. The grant awards
will be made as quickly as possible so that communities awarded grants
can complete the grant agreement process and proceed to implement their
plans. Pending unforeseen circumstances, the grant selection process
should be completed by December 2010. Given the competitive nature of
the grant process, the Department will not meet with grant applicants
with respect to their grant proposals. The Department's selection of
communities for grant awards will be based on the communities' written
submissions.
Priority factors considered. The law directs the Department to give
priority consideration to those communities or consortia where:\12\
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\12\ 49 U.S.C. 41743(c)(5).
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Air fares are higher than the national average air fares
for all communities;
The community or consortium will provide a portion of the
cost of the activity from local sources other than airport revenue
sources;
The community or consortium has established or will
establish a public-private partnership to facilitate air carrier
service to the public;
The assistance will provide material benefits to a broad
segment of the traveling public, including business, educational
institutions, and other enterprises, whose access to the national air
transportation system is limited; and
The assistance will be used in a timely manner.
Additional factors considered. Applications will be evaluated
against the priority considerations listed above. Our experience has
been that more applications are received than can be funded under the
Small Community Program. Consequently, consistent with the criteria
stated above, the selection process will take into consideration such
additional factors as:
The geographic location of each applicant, including the
community's proximity to larger centers of air service and low-fare
service alternatives;
The proposed federal grant amount requested compared with
the local share offered;
Whether the applicant community has previously received a
grant award under this program and, if so, whether its application
includes an explanation of how the community's proposed project differs
from its previously funded project;
The community's demonstrated commitment to and
participation in the proposed grant project;
The relative size of each applicant community;
The community's existing level of air service and whether
that service has been increasing or decreasing;
Whether the community's proposal, if successfully
implemented, could serve as a working model for other communities;
Current demographic indicators for the community, such as
population, income and business activity;
The grant amount requested compared with total funds
available for all communities;
Whether the community has a realistic plan to use the
funds in a timely manner;
The uniqueness of an applicant's claimed problems and
whether the proposed project addresses those problems;
The extent to which the applicant's proposed solution(s)
to solving the problem(s) is new or innovative; and
Whether the community's proximity to an existing grant
recipient could impact its proposal.
Full community participation is a key goal of this program as
demonstrated by
[[Page 45004]]
the statute's focus on local contributions and active participation in
the project. Therefore, applications that demonstrate broad community
support will be more attractive. For example, communities providing
proportionately higher levels of cash contributions from other than
airport revenues will have more attractive proposals. Communities that
provide multiple levels of contributions (state, local, airport, cash
and in-kind contributions) also will have more attractive proposals.
Similarly, communities that demonstrate participation in the
development and execution of the proposed air service project will
enhance the attractiveness of their proposals. In this regard, the
Department welcomes letters of intent from airlines on behalf of
community proposals that are specifically intended to enlist new or
expanded air carrier presence. Such letters will be accorded greater
weight when authorized by airline planning departments.
Proposals that offer innovative solutions to the transportation
issues facing the community will be more attractive. Small communities
have faced many problems retaining and improving their air services and
in coping with air fares that are higher than typical for larger
communities. Therefore, proposals that offer new, creative approaches
to addressing these problems, to the extent that they are reasonable,
will have their attractiveness enhanced. Proposals that provide a well-
defined plan, a reasonable timetable for use of the grant funds, and a
plan for continuation and/or monitoring of the project after the grant
expires also will have greater attractiveness.
Award Administration Information
The Department will announce its grant selections in a selection
order, which will be served on each grant recipient, all other
applicants, and all parties served with this solicitation order. The
selection order will also be posted in the Docket at http://www.regulations.gov and on the Department's webpage.
Grant agreement. Communities awarded grants are required to execute
a grant agreement with the Department before they begin to spend funds
under the grant award. Grant funds will be provided on a reimbursable
basis only, with reimbursements made only for expenses incurred and
billed during the period that the grant agreement is in effect and at
the appropriate percentage rate, which is determined by: (SCASDP Grant
Amount) / (SCASDP Grant Amount + Local Cash Contribution + State Cash
Contribution, if applicable). Applicants should not assume they have
received a grant, nor should they obligate or spend local funds prior
to receiving and fully executing a grant agreement with the Department.
Expenditures made prior to the execution of a grant agreement,
including costs associated with preparation of the grant application,
will not be reimbursed. Moreover, there are numerous assurances that
grant recipients must sign and honor when federal funds are awarded.
All communities receiving a grant under the Small Community Program
will be required to accept the responsibilities of these assurances and
to execute the assurances when they execute their grant agreements.
Copies of the applicable assurances are available for review on the
Department's webpage at http://ostpxweb.dot.gov/aviation/X-50%20Role_files/smallcommunity.htm (click on ``SCASDP Grant Assurances'').
Grantee reports. The grant agreement between the Department and
each selected community will require the submission of quarterly
reports on the progress the community has made during the previous
quarter in implementing its grant project. In addition, the grant
agreement will require the submission, on a quarterly or other time-
specific basis, of other materials relevant to the grant project, such
as copies of advertising and promotional material and copies of
contracts with consultants and service providers. In addition, each
community will be required to submit a final report on its project to
the Department, and 10 percent of the grant funds will not be
reimbursed to the community until such final report is received.
Cost reimbursement. Communities will be permitted to seek
reimbursement of project implementation costs on a regular basis. The
frequency of such requests will be at the community's discretion. In
this regard, the Department will provide the grant recipient
communities with details and procedures for securing reimbursements
electronically.
Grant amendments. A grantee may wish to amend its agreement with
the Department in the event of a change in circumstances after the date
the agreement is executed. Typically, amendments involve an extension
to the time period for completing the grant or a change in the types of
activities authorized for reimbursement under the goals and objectives
(``project scope'') of the grant agreement. Grantees are cautioned,
however, that the Department cannot authorize amendments that are
incompatible with the scope of the agreement. For example, a grant
awarded solely for the purpose of developing an airport marketing plan
cannot be amended to permit subsidization of an air carrier's startup
costs, or a grant awarded solely for the purpose of attracting low-fare
service cannot be amended to permit it to attract service from a legacy
carrier, since the latter, in each example, was never contemplated by
the original agreement.
Grantees are also advised that the Department will not extend the
expiration date of an agreement simply to allow more time for a
community to solicit air carriers for new air service. Many grants have
been awarded for the purpose of subsidizing new or additional air
service for a small community, with the goal of that service becoming
self-sustaining by the end of the subsidy period. In virtually all
cases, the community seeking the grant funds received expressions of
interest from one or more air carriers. In some instances, these
expressions of interest failed to materialize and the community was
left without any immediate prospects, at which time it asked for a
grant extension to allow more time to pursue other carriers. Because
the Department is charged by law to consider timely use of funds when
selecting grant recipients, the Department will grant an extension only
when the community can provide strong evidence of a firm commitment on
the part of an air carrier to deliver the desired service.
To avoid misunderstandings, grantees contemplating amendments to
their agreements are urged to discuss their situations with the Small
Community Program staff before requesting a formal amendment.
This order is issued under authority delegated in 49 CFR 1.56a(f).
Accordingly,
1. Community proposals for funding under the Small Community Air
Service Development Program should be submitted via http://www.grants.gov as an attachment to the SF424 no later than August 27,
2010; and
2. This order will be published in the Federal Register and also
will be served on the Conference of Mayors, the National League of
Cities, the National Governors Association, the National Association of
State Aviation Officials (NASAO), County Executives of America, the
American Association of Airport Executives (AAAE), and the Airports
Council International-North
[[Page 45005]]
America (ACI), and posted on http://www.grants.gov.
Susan L. Kurland,
Assistant Secretary for Aviation and International Affairs.
An electronic version of this document is available on the World
Wide Web at http://www.regulations.gov.
Appendix A--Small Community Air Service Development Program
United States Code Annotated
Title 49. Transportation
Subtitle VII. Aviation Programs
Part A. Air Commerce and Safety
Subpart II. Economic Regulation
Chapter 417. Operations of Carriers
Subchapter II. Small Community Air Service
[rtarr6]Sec. 41743. Airports not receiving sufficient service
(a) Small community air service development program.--The Secretary
of Transportation shall establish a program that meets the requirements
of this section for improving air carrier service to airports not
receiving sufficient air carrier service.
(b) Application required.--In order to participate in the program
established under subsection (a), a community or consortium of
communities shall submit an application to the Secretary in such form,
at such time, and containing such information as the Secretary may
require, including--
(1) An assessment of the need of the community or consortium for
access, or improved access, to the national air transportation system;
and
(2) an analysis of the application of the criteria in subsection
(c) to that community or consortium.
(c) Criteria for participation.--In selecting communities, or
consortia of communities, for participation in the program established
under subsection (a), the Secretary shall apply the following criteria:
(1) Size.--For calendar year 1997, the airport serving the
community or consortium was not larger than a small hub airport, and--
(A) had insufficient air carrier service; or
(B) had unreasonably high air fares.
(2) Characteristics.--The airport presents characteristics, such as
geographic diversity or unique circumstances, that will demonstrate the
need for, and feasibility of, the program established under subsection
(a).
(3) State limit.--Not more than 4 communities or consortia of
communities, or a combination thereof, from the same State may be
selected to participate in the program in any fiscal year.
(4) Overall limit.--No more than 40 communities or consortia of
communities, or a combination thereof, may be selected to participate
in the program in each year for which funds are appropriated for the
program.
No community, consortia of communities, nor combination thereof may
participate in the program in support of the same project more than
once, but any community, consortia of communities, or combination
thereof may apply, subsequent to such participation, to participate in
the program in support of a different project.
(5) Priorities.--The Secretary shall give priority to communities
or consortia of communities where--
(A) Air fares are higher than the average air fares for all
communities;
(B) the community or consortium will provide a portion of the cost
of the activity to be assisted under the program from local sources
other than airport revenues;
(C) the community or consortium has established, or will establish,
a public-private partnership to facilitate air carrier service to the
public;
(D) the assistance will provide material benefits to a broad
segment of the traveling public, including business, educational
institutions, and other enterprises, whose access to the national air
transportation system is limited; and
(E) the assistance will be used in a timely fashion.
(d) Types of assistance.--The Secretary may use amounts made
available under this section--
(1) To provide assistance to an air carrier to subsidize service to
and from an underserved airport for a period not to exceed 3 years;
(2) To provide assistance to an underserved airport to obtain
service to and from the underserved airport; and
(3) To provide assistance to an underserved airport to implement
such other measures as the Secretary, in consultation with such
airport, considers appropriate to improve air service both in terms of
the cost of such service to consumers and the availability of such
service, including improving air service through marketing and
promotion of air service and enhanced utilization of airport
facilities.
(e) Authority to make agreements.--
(1) In general.--The Secretary may make agreements to provide
assistance under this section.
(2) Authorization of appropriations.--There is authorized to be
appropriated to the Secretary $20,000,000 for fiscal year 2001,
$27,500,000 for each of fiscal years 2002 and 2003, and $35,000,000 for
each of fiscal years 2004 through 2008 to carry out this section. Such
sums shall remain available until expended.
(f) Additional action.--Under the program established under
subsection (a), the Secretary shall work with air carriers providing
service to participating communities and major air carriers (as defined
in section 41716(a)(2)) serving large hub airports to facilitate joint-
fare arrangements consistent with normal industry practice.
(g) Designation of responsible official.--The Secretary shall
designate an employee of the Department of Transportation--
(1) To function as a facilitator between small communities and air
carriers;
(2) To carry out this section;
(3) To ensure that the Bureau of Transportation Statistics collects
data on passenger information to assess the service needs of small
communities;
(4) To work with and coordinate efforts with other Federal, State,
and local agencies to increase the viability of service to small
communities and the creation of aviation development zones; and
(5) To provide policy recommendations to the Secretary and Congress
that will ensure that small communities have access to quality,
affordable air transportation services.
(h) Air Service Development Zone.--The Secretary shall designate an
airport in the program as an Air Service Development Zone and work with
the community or consortium on means to attract business to the area
surrounding the airport, to develop land use options for the area, and
provide data, working with the Department of Commerce and other
agencies.
Appendix B--Small Community Air Service Development Program
Docket DOT-OST-2010-0124
Summary Information
All applicants must submit this information with their proposal,
along with a completed form SF424 on http://www.grants.gov.
[[Page 45006]]
A. Applicant Information: (Check All That Apply)
[ballot] Not a Consortium [ballot] Interstate Consortium [ballot] Intrastate Consortium
[ballot] Community now receives EAS subsidy
[ballot] Community (or Consortium member) previously received a Small Community Grant
If previous recipient: Date of grant: ----------------------
--
Expiration date of grant:------------------------
B. Public/Private Partnerships: (List Organization names)
Public Private
1. 1.
------------------------------------------------------------------------
;2. 2.
------------------------------------------------------------------------
;3. 3.
------------------------------------------------------------------------
;4. 4.
------------------------------------------------------------------------
;5. 5.
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C. Project Proposal: (check all that apply)
[ballot] Marketing [ballot] Upgrade Aircraft........... [ballot] New Route
[ballot] Personnel [ballot] Increase Frequency......... [ballot] Low Fare Service
[ballot] Travel Bank [ballot] Service Restoration........ [ballot] Subsidy
[ballot] Surface Transportation [ballot] Regional Service........... [ballot] Other (specify)
[ballot] Revenue Guarantee [ballot] Launch New Carrier......... [ballot] ----------------
[ballot] Start Up Cost Offset [ballot] First Service.............. [ballot] ----------------
[ballot] Study [ballot] Secure Additional Carrier.. [ballot] ----------------
D. Existing Landing Aids at Local Airport:
[ballot] Full ILS [ballot] Outer/Middle Marker........ [ballot] Published Instrument
Approach
[ballot] Localizer [ballot] Other (specify)............
E. Project Cost:
1. Federal amount requested: -----------------------------------
-----
2. State cash financial -----------------------------------
contribution: -----
3. Local cash financial
contribution.
3a. Airport cash funds: -----------------------------------
-----
3b. Non-airport cash funds: -----------------------------------
-----
3c. Total local cash funds (3a. -----------------------------------
+ 3b.): -----
4. TOTAL CASH FUNDING (1. + 2. + -----------------------------------
3c.): -----
5. Local funds contributed from -----------------------------------
already-existing programs or -----
projects included in line 3c.
amount:
6. Local funds contributed from -----------------------------------
new commitments or new resources -----
included in line 3c. amount:
7. Airport In-Kind contribution: -----------------------------------
-----
(amount & description)
8. Other In-Kind contribution: -----------------------------------
-----
(amount & description)
9. TOTAL IN-KIND CONTRIBUTION (7. -----------------------------------
+ 8.): -----
10. TOTAL PROJECT COST (4. + 9.): -----------------------------------
-----
F. Enplanements:
2000 -------------------------------- 2004-------------------------------- 2008--------------------------------
--. - -
2001-------------------------------- 2005-------------------------------- 2009--------------------------------
-. - -
2002-------------------------------- 2006--------------------------------
-. -
2003-------------------------------- 2007--------------------------------
-. -
G. Is This Application Subject To Review by State Under Executive Order 12372 Process?
[ballot] a. This application was made available to the State under the Executive Order 12372 Process for review
on (date) ------------
[ballot] b. Program is subject to E.O. 12372, but has not been selected by the State for review.
[ballot] c. Program is not covered by E.O. 12372.
H. Is the Applicant Delinquent on Any Federal Debt? (If ``Yes'', Provide Explanation)
[ballot] No [ballot] Yes (explain) ----------------------------------------
[[Page 45007]]
[FR Doc. 2010-18731 Filed 7-29-10; 8:45 am]
BILLING CODE 4910-62-P