Airport Privatization Pilot Program

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

[Docket No. 29088]

Airport Privatization Pilot Program

AGENCY: Federal Aviation Administration (FAA), DOT.

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ACTION: Notice of Receipt of Final Application of Stewart International

Airport, Newburgh, New York; Request for Comments.

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SUMMARY: The Federal Aviation Administration (FAA) is seeking

information and comments from interested parties on the final

application by the State of New York for participation of Stewart

International Airport (SWF) in the airport privatization pilot program.

The final application is accepted for review.

49 U.S.C. Section 47134 establishes an airport privatization pilot

program and authorizes the Department of Transportation to grant

exemptions from certain Federal statutory and regulatory requirements

for up to five airport privatization projects. The application

procedures require the FAA to publish a notice of receipt of the final

application in the Federal Register and accept public comment on the

final application for a period of 60 days.

DATES: Comments must be received by June 7, 1999. Comments that are

received after that date will be considered only to the extent

possible.

ADDRESSES: The SWF final application is available for public review in

the Federal Aviation Administration, Office of Chief Counsel,

Attention: Rules Docket (AGC-200), Docket No. 29088, 800 Independence

Avenue, SW., Washington, DC 20591. The New York State Department of

Transportation (NYSDOT), the airport sponsor, has also made a copy of

the application available at the following locations:

Town Clerk's Office, Town of New Windsor, Town Hall, 555 Union Avenue,

New Windsor, NY 12553.

Town Clerk's Office, Town of Newburgh, Town Hall, 20-26 Union Avenue,

Newburgh, NY 12550.

Newburgh Free Library, 124 Grand Street, City of Newburgh, Newburgh, NY

12550.

Orange County Planning Department, 124 Main Street, Goshen, NY 10924.

Airport Director's Office, Airport Administration Building, 1035 First

Street, Stewart International Airport, New Windsor, NY 12553.

Comments on the SWF final application must be delivered or mailed,

in quadruplicate, to: the Federal Aviation Administration, Office of

Chief Counsel, Attention: Rules Docket (AGC-200), Docket No. 29088, 800

Independence Avenue, SW., Washington, DC 20591. All comments must be

marked ``Docket No. 29088''. Commenters wishing the FAA to acknowledge

receipt of their comments must include a preaddressed, stamped postcard

on which the following statement is made: ``Comments to Docket No.

29088.'' The postcard will be date stamped and mailed to the commenter.

Comments on this Notice may be delivered or examined in room 915G on

weekdays, except Federal holidays, between 8:30 a.m. and 5:00 p.m.

FOR FURTHER INFORMATION CONTACT: Kevin C. Willis, Compliance Specialist

(AAS-400), (202-267-8741) Airport Compliance Division, Office of

Airport Safety and Standards, Federal Aviation Administration, 800

Independence Ave. SW., Washington, DC 20591.

SUPPLEMENTARY INFORMATION: Section 149 of the Federal Aviation

Administration Authorization Act of 1996, Pub. L. 104-264 (October 9,

1996) (1996 Reauthorization Act), added a new Sec. 47134 to Title 49 of

the U.S. Code. Section 47134 authorizes the Secretary of

Transportation, and through delegation, the FAA Administrator, to

exempt a sponsor of a public use airport that has received Federal

assistance from certain Federal requirements in connection with the

privatization of the airport by sale or lease to a private party.

Specifically, the Administrator may exempt the sponsor from all or part

of the requirements to use airport revenues for airport-related

purposes (upon approval of 65 percent of the air carriers serving the

airport and having 65 percent of the landed weight), to pay back a

portion of Federal grants upon the sale of an airport, and to return

airport property deeded by the Federal Government upon transfer of the

airport. The Administrator is also authorized to exempt the private

purchaser or lessee from the requirement to use all airport revenues

for airport-related purposes, to the extent necessary to permit the

purchaser or lessee to earn compensation from the operations of the

airport (No air carrier approval is necessary for the latter

exemption.)

On September 16, 1997, the FAA issued a notice of procedures to be

used in applications for exemption under Airport Privatization Pilot

Program (62 FR 48693). The notice of procedures and its public comments

are available for review in FAA Rules Docket No. 28895. A request for

participation in the Pilot program may be initiated by the filing of

either a preliminary or final application for exemption with the FAA.

On December 16, 1997, the FAA issued a notice accepting for review,

the Stewart International Airport preliminary application (62 FR

65845). This action permitted NYSDOT to select a private operator,

negotiate an agreement and submit a final application to the FAA for

exemption. The filing date of the NYSDOT preliminary application is

October 23, 1997, the date the FAA received the preliminary

application. On January 10, 1999, New York State Department of

Transportation filed a final application.

The proceeds from the sale of lease of airport property are

considered airport revenue and must be used in accordance with the

requirements of 49 U.S.C. 47107(b) and 47133. In its final application,

the State of New York has elected not to request an exemption under 49

U.S.C. 47134(b)(1) from 49 U.S.C. 47107(b) and 47133, on the basis that

the State will use the proceeds from the lease of Stewart International

Airport for purposes that are permitted under 47107(b) and 47133. In

the application, the State of New York indicates that the initial lease

payment will total $35 million. The State proposes to use $24.4 million

of that amount to repay the State for funds contributed for the capital

and operating costs of Stewart International Airport and Republic

Airport during the past six years, in accordance with 49 U.S.C.

47107(I)(5). With regard to the use of the $10.5 million balance of the

initial payment, the State of New York has included information in the

application describing how this amount will be used for airport

purposes in accordance with the statutory requirements and grant

assurances concerning use of airport revenue. The FAA will conduct an

appropriate review of the proposed uses of airport revenue separate and

apart from its review of the State's application under the pilot

program. The approval or disapproval of the pending Sec. 47134

application is not conditioned upon the FAA's approval or disapproval

of the State's request for reimbursement under Sec. 47107(I)(5),

because the funds must be used for a purpose consistent with

Sec. 47107(b) in any event.

On February 16, 1999, in an effort to clarify certain parts of the

application, FAA staff requested responses to five questions from the

State of New York and 12 questions from the private operator. Ten of

the questions posed to the private operator required it to utilize

confidential business or financial information in order to respond. In

accordance with the airport privatization pilot program application

procedures, 62 FR 48693, 48706 (September 16, 1997), the private

operator has requested confidential treatment of this information. As a

result, the responses to these 10 questions will not be available for

public comment. Copies of the 17

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questions and the seven responses available for public view and comment

are included in Attachment 15 of the sponsor's application for public

review.

The FAA has determined that the application is substantially

complete. As part of its review of the SWF final application, the FAA

will consider all comments and information submitted by interested

parties during the 60-day comment period for this notice.

Issued in Washington, DC, on April 2, 1999.

David L. Bennett,

Director, Airport Safety and Standards.

[FR Doc. 99-8752 Filed 4-7-99; 8:45 am]

BILLING CODE 4910-13-M