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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). 
 

Continue Reading FAA Loosens Regulation of Taxes on Aviation Fuel

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. 
 Continue Reading Surrounding Communities Object to Approval of the Los Angeles International Airport Specific Plan Amendment Study Project

The California Department of Transportation, Aviation Division (“Caltrans”) has announced yet another delay in the publication of the “California Airport Land Use Planning Handbook” (“Handbook”). The Handbook constitutes guidance for California’s airport land use commissions (“ALUC”) in the establishment of height, density and intensity restrictions for land uses around California airports. This delay continues and even increases the risk of conflict between ALUCs and local land use jurisdictions throughout California. 

ALUC restrictions are not the last word concerning land uses around airports, as local land use jurisdictions have final authority to approve or disapprove land uses within their own boundaries. However, ALUC restrictions can make it more difficult for a local jurisdiction to effectuate previously enacted development plans in the vicinity of an airport. This is because, to overcome the ALUC determination of inconsistency with ALUC restrictions, the local jurisdiction must overrule the ALUC by a two-thirds vote, a hurdle often difficult if not impossible to overcome because of fears of liability.

Continue Reading California Airport Land Use Planning Handbook 2011 Update Delayed Again

It has come to our attention that the most recent revision of the California Airport Land Use Planning Handbook (Handbook) has just been released for public review and comment. The review period will end December 27, 2010.

The Handbook and the Airport Land Use Compatibility Plans (ALUCP) approved by many jurisdictions based on…

In an article posted on this blog on September 2, 2010, Chevalier, Allen & Lichman, LLP (CA&L) reported that the California Department of Transportation (Department) had announced that the Draft 2010 California Airport Land Use Planning Handbook (Handbook) would be available for review and comment from September 7 through October 4, 2010. CA&L has learned…

The California Department of Transportation (Department) has announced that the Draft 2010 Airport Land Use Planning Handbook (Handbook) will be available for review and comment from September 7 through October 4, 2010. The Department’s Division of Aeronautics has been working with Environmental Science Associates to update the January 2002 version of the Handbook.

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Section 21670 of the California State Aeronautics Act requires that every county in which there is an airport that is served by a scheduled airline establish an Airport Land Use Commission (ALUC) “to protect public health, safety, and welfare by ensuring the orderly expansion of airports and the adoption of land use measures that minimize the public’s exposure to excessive noise and safety hazards within areas around public airports to the extent that these areas are not already devoted to incompatible uses.” One of the duties of the ALUC is to adopt an Airport Land Use Compatibility Plan (ALUCP). In formulating an ALUCP, an ALUC has the power to develop height restrictions on buildings, specify use of land and determine building standards within the Airport Influence Area (AIA) designated by the ALUC.

Continue Reading Land Use Planning Near California Airports Could Change Your Development Plans

On April 26, 2010, the Transportation Research Board published a three volume Airport Cooperative Research Program (“ACRP”) report on “Enhancing Airport Land Use Compatibility.”  The authors’ mandate was “to investigate and present the current breadth and depth of knowledge surrounding land uses around airports and to develop guidance to protect airports from incompatible land…