SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAMBy Order 2008-3-8 (Docket OST-2008-0100), April 1, 2008, the Department solicited applications from communities and consortiums of communities interested in receiving a grant under the Small Community Air Service Development Program. This program provides grant-in-aid financial assistance to small communities to improve their air service. Background: Specifically, the law authorizes the Secretary to make a maximum of 40 grants each year though no more than four of those may be to the same state (a consortium of communities is considered a single entity). The core objective of the program is to secure enhancements that will be responsive to a community's air transportation needs and whose benefits can be expected to continue after the initial expenditures. Eligibility for Participation:To be eligible for a grant, the community must meet the following criteria: Size-for calendar year 1997, the airport serving the community or consortium was not larger than a small hub airport, and
Characteristics-the airport presents characteristics, such as geographic diversity or unique circumstances that will demonstrate the need for, and feasibility of, the program Funding:The program was not funded in its first year, fiscal year 2001, but was funded and implemented in each of fiscal years 2002 and 2003. The FY 2004 Consolidated Appropriations Act, P.L. 108-199, January 23, 2004, provided funding for the program of a level of $20 million for FY2004. Due to an across-the-board rescission, $19,880,000 was available for 2004 grant awards. The Vision 100 legislation authorizes funding of $35 million for the program in each fiscal year, through 2008. However, the Consolidated Appropriations Act of 2005, P.L 108-447, December 8, 2004, provided funding for the program at a level of $20 million for fiscal year 2005. With an across the board recision, $18,952,685 was available for 2005. Furthermore, the Department of Transportation’s budget appropriation for 2006 as set forth in the Transportation, Treasury, Housing and Urban Development, the Judiciary, the District of Columbia, and Independent Agencies Appropriations Act of 2006, P.L 109-115, November 30, 2005, provides funding of up to $10 million for the program in fiscal year 2006, subject to an across-the-board rescission of 1%. On February 15, 2007, the President signed into law the Revised Continuing Appropriations Resolution 2007 (P.L. 110-005), which provides the Department with $10 million to administer the Small Community program. The funds remain available until expended. In addition, funds not used by previous grant recipients that have completed their grant projects are also available for reallocation. The financial assistance under this program is in the form of financial grants. The statute limits the Department to a maximum of 40 grant awards in each year that the program is funded. It does not prescribe any limits on the amounts of individual awards. The grant amounts awarded will vary depending upon the features and merits of the proposals selected. Over the past three years, the Department's individual grants have ranged from $20,000 to nearly $1.6 million. The grant funds awarded do not need to be expended in the fiscal year that they are awarded. Nor do they need to be used within a one-year period. Authorized grant projects may include activities that extend over a multi-year period under a single grant award to the extent reasonable and practicable. Generally speaking, grant awards will not exceed a three-year period. Grant funds to the selected communities are available on a reimbursable basis under which the community expends funds related to implementation of the approved grant project, and then seeks reimbursement from the Department at regular intervals (usually monthly) for project expenditures. Communities that were awarded grants in previous years that want to apply for a grant this year should be aware that they are precluded from seeking funds for projects that have already received an award under the Small Community Program. However, previous grant recipients may submit grant proposals and seek funds for new projects. That said, the funds for this program are very limited and the interest in the program has far exceeded both the funds available and the number of communities that can participate under the statute in any one year. 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. Use
of Funds: In selecting communities to participate in the program, the statute directs the Secretary to give priority to those communities where: (a) average air fares are higher than the air fares for all communities;Air Service Development Zone: The statute provides that the Department will designate one of the grant recipients as an Air Service Development Zone and work closely with the designated community or consortium on means to attract business to the areas surrounding the airport and to develop land use options for the area. The purpose of the designation is to provide communities interested in attracting business to the area surrounding the airport and/or developing land use options for the area to work with the Department on means to achieve those goals. Only communities that are interested in these objectives and have a plan to accomplishing them should compete for the available designation. Applying for this designation will provide no special benefit or preference to a community in receiving a grant award. Grant applicants interested in selection for the Air Service Development Zone designation, must include in their applications a separate section, titled, Support for Air Service Development Zone Designation (see Order for further information). The Department will work with the selected grant recipient by reviewing its proposed goals and plans and will meet with the community to help direct the community’s efforts to appropriate government agencies, including the Department of Commerce as well as other U.S. DOT offices that could provide further support and guidance for achieving the community’s goals. The community and its leaders are in the best position to determine what activities will benefit its goals for greater air service development. The Department will serve as a liaison in helping the selected community connect directly with others that have the expertise and ability, including funding where the community meets the necessary requirements, to support the community’s developmental activities. Where
to Submit Proposals:
The original should be unbound, on 8 1/2" x 11" paper, using dark (not green) ink and without tabs to facilitate use of the Department's docket imaging system. Contact:
Last updated: 5/23/2008 |
