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On November 7, 2014, the Federal Aviation Administration (“FAA”) published its “Final Policy Amendment” (“Amendment”) to its “Policy and Procedures Concerning the Use of Airport Revenue,” first published 15 years ago in the Federal Register at 64 Fed.Reg. 7696, February 16, 1999 (“Revenue Use Policy”).  The Amendment formally adopts FAA’s interpretation of the Federal requirements for use of revenue derived from taxes including sales taxes on aviation fuel imposed by both airport sponsors and governmental agencies, local and State, that are non-airport operators. 

In brief, the FAA concludes that “an airport operator or State government submitting an application under the Airport Improvement Program must provide assurance that revenues from State and local government taxes on aviation fuel will be used for certain aviation-related purposes.”  79 Fed.Reg. 66283.  Predictably, FAA received 25 substantive comments from a diverse group of interested parties, including airport operators, industry and nonprofit associations representing airports, air carriers, business aviation and airport service businesses, air carriers, state government agencies, and private citizens.  For example, in response to the airports’ and governments’ comments that airport sponsors would find it impossible to provide assurance that other governmental agencies would comply with the revenue use statutes for the life of the Airport Improvement Program (“AIP”) grant, and that airports should not be required to agree to a condition compliance with which they have no control, FAA takes the position that Federal statute 49 U.S.C. §§ 47107(b) and 47133 already require this level of control from local proprietors.  This is because “[t]he grant assurances provided by airport sponsors include Grant Assurance 25, which provides, in relevant part: ‘All revenues generated by the airport and any local taxes on aviation fuel established after December 30, 1987, will be expended by it for the capital or operating costs of the airport; the local airport system; or other facilities which are owned and operated by the owner and operator of the airport. . .’” 79 Fed.Reg. 66284.  The FAA further concludes that airport sponsors often have influence on the taxation of aviation activities in their States and localities, and the FAA expects airport sponsors to use that influence to shape State and non-sponsor local taxation to conform to these Federal laws.  Id.  Moreover, FAA asserts its power to pursue enforcement action against non-sponsor entities for the purposes of limiting the use of aviation tax revenues under 49 U.S.C. §§ 46301, 47133 and 47111(f). 
 

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Continue Reading FAA Loosens Regulation of Taxes on Aviation Fuel

Predictably, Judge John Walter of the Los Angeles Federal District Court summarily dismissed a lawsuit brought by the City of Santa Monica (“Santa Monica”) aimed at closing the Santa Monica Airport, based on, among other things, unconstitutional taking of property without just compensation.  The court’s decision was made on the procedural grounds that, among other things, the lawsuit was brought too late and in the wrong court.

First, the court found that Santa Monica had brought the suit after the applicable 12 year statute of limitations had expired.  28 U.S.C. § 2409(a)(g).  The court’s rationale was that Santa Monica knew as long ago as 1948 that the Federal Aviation Administration (“FAA”) had a residual claim to the property arising from the Deed of Transfer of the federal government’s lease back to the City of Santa Monica.  That residual claim, therefore, required that Santa Monica’s suit be brought no later than the early 1960s. 

In addition, the court found that, even if a claim for unconstitutional taking could be sustained under the applicable statute of limitations, it was improperly brought in the District Court, as the Tucker Act, 28 U.S.C. § 1491(a)(1) vests exclusive subject matter jurisdiction over monetary claims against the federal government exceeding $10,000 with the Court of Federal Claims.  Santa Monica does not, of course, dispute that the value of the airport property that it wishes to recover and use for other purposes exceeds $10,000. 

Although the court chose the procedural route in making its decision, there appear to be relevant substantive grounds as well.
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Continue Reading Judge Blocks City of Santa Monica’s Latest Effort to Close the Santa Monica Airport

The Cities of Inglewood, Culver City and Ontario, California and the County of San Bernardino (“Cities/County”) joined together yesterday, May 30, 2013, to file a challenge to the recently approved Los Angeles International Airport (“LAX”) Specific Plan Amendment Study (“SPAS”) expansion project.  The project includes: the further separation of runways on the North Airfield to…

On March 27, 2013, the Los Angeles County Airport Land Use Commission (“ALUC”) gave the latest in a series of approvals including those from Los Angeles Board of Airport of Commissioners (“BOAC”) and Los Angeles City Planning Commission, of the proposed Los Angeles International Airport Specific Plan Amendment Study Project (“Project”).  The Project includes construction of a new terminal, addition of runway safety lighting, and, its centerpiece, the reconfiguration of the North Runway Complex with movement of runway 6L/24R 260 feet north. 

Most notably, the Project will impose dramatic impacts on surrounding communities, including significant new noise impacts on over 14,000 people, 12,000 in the City of Inglewood alone.  Moreover, the Project adversely impacts the goal of regionalization which is a centerpiece of the Stipulated Settlement signed by the Petitioners in City of El Segundo, et al. v. City of Los Angeles, et al., Riverside County Superior Court Case No. RIC426822.  A principal goal of that settlement was, and remains, diversion of air traffic to other airports in the region, not the encouragement of access to LAX. 
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Continue Reading Surrounding Communities Object to Approval of the Los Angeles International Airport Specific Plan Amendment Study Project

On July 27, 2012, Los Angeles World Airports (“LAWA”) released the “Specific Plan Amendment Study Draft Environmental Impact Report” (“DEIR”), involving, among other things: (1) a realignment and extension of runways to the east on the North Airfield Complex, including a separation of the two north runways to permit their unimpeded use by the largest operating aircraft, A-380s and 747-800s (“Category VI”); (2) expansion and renovation of the terminals; and (3) associated movement and potential undergrounding of surrounding thoroughfares including Lincoln Boulevard.  Sides are already forming over the proposed plan. …

Continue Reading Draft Environmental Impact Report for Los Angeles International Airport Airfield Project Released

The controversy over the invasive body scans and pat-downs by the Transportation Security Agency (TSA) seems to have temporarily blown over. However, with Christmas vacation on the way, they are certain to arise again. When they do, it is important that the public, and particularly that segment of the public with an interest in, or connection to, airports and aviation, be aware of the full scope of the constitutional and legal rights and restrictions governing these searches.

As a threshold matter, it should be understood that the searches by TSA, an agency of the United States government, are of the sort of governmental action covered by the Fourth Amendment to the United States Constitution. The Fourth Amendment contains a prohibition on “unreasonable search and seizure.” Under the case law that has developed over more than 200 years, a search is “reasonable” under only two circumstances: (1) if there is “probable cause” to believe a criminal act has been committed by the person being searched; or (2) absent such “probable cause,” if a party has given consent to the search. If there is no probable cause, or consent is not given or it is withdrawn, an American citizen may not be searched by an agent of the government constitutionally.
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Continue Reading TSA Threats of Retaliation for Refusal of Intrusive Body Searches are Empty Rhetoric