PFC and the AIP

Central Region

The following information addresses the relationship and differences between the PFC program and the AIP program.

Public agencies are authorized to use PFC revenue as a matching local share of an AIP project
While PFC revenue can be used to pay debt service, Sponsors may not use AIP funds for this purpose
Large and Medium airports that impose a PFC charge may incur a reduction in AIP apportionments. Refer to Chapter 5 of FAA Order 5500.1 for additional information
Whenever PFC revenue, in any amount, are commingled with an AIP funded project, the Federal statutory and regulatory requirements of the AIP shall apply to all funds within the project.

Projects must meet one or more of the objectives of Part 158.15(a). Specifically, the project must
1. Preserve or enhance safety, security or capacity of the national air transportation system;
2. Reduce noise or mitigate noise impacts that result from the airport; or
3. Furnish opportunities for enhanced competition between or among air carriers.
Additional requirements exists for imposition of PFC's above $3.00.
Projects funded solely by PFC revenues are not subject to the same Federal Statutory and Regulatory provisions of an AIP funded project. Specifically, the following requirements would not apply to project funded solely by PFC:
- Davis Bacon Act
- Disadvantaged Business Enterprise
- Buy American Preferences

If you require additional information regarding application of a PFC within the FAA Central Region, please contact the Central Region PFC Specialist.