Senate Bill S7433

                                 
BILL NUMBER: S7433

SPONSOR: MARTINEZ
 
TITLE OF BILL:

An act to amend the transportation law, in relation to maximum grant
awards for airport improvement and revitalization

 
PURPOSE:

The purpose of this bill is to authorize the commissioner of the depart-
ment of transportation to increase the maximum aviation capital grant
award from $2.5 million to up to $5 million.

 
SUMMARY OF PROVISIONS:

Section 1. amends paragraph (f) of subdivision 2 of section 14-1 of the
transportation law to allow the department of transportation to increase
the maximum grant award higher than the sum of $2.5 million when the
commissioner, in his or her discretion, determines that the total funds
available for assistance pursuant to this section supports a higher
maximum grant, not to exceed five million dollars.
              

Section 2. is the enacting clause.

 
JUSTIFICATION:

The maximum grant under the Aviation Capital Grant Program should be
established at a level commensurate with the total appropriation for
each program solicitation.

The grant cap was increased from $1.5 million to $2.5 million in the
2021-2022 enacted budget. Raising the cap further to "up to $5 million"
will provide the Commissioner of the New York State Department of Trans-
portation with the authority necessary to adjust the award cap to better
reflect the size of a particular program solicitation. This would help
some smaller general aviation (GA) airports to-develop important revenue
projects like hangars that typically cost more than the current $2.5
million award cap.

The Aviation Capital Grant Program is available to public-use airports
throughout the state which are listed in the current State Airport
System plan and is a critical source of aviation infrastructure financ-
ing. The program covers projects such as aviation-related facility
construction and reconstruction, terminal improvement and expansion
projects, the purchase of airport equipment, the purchase and installa-
tion of navigational aids and other projects which enhance safety. Just
as importantly, funding under this program can be used for revenue-gen-
erating projects such as concession areas and the forementioned hangar
construction. These types of projects are not eligible for funding under
the federal Airport Improvement Program, which is why the State grant
program is so vital.

Appropriations under this program fluctuate from year to year and the
Department frequently combines multiple year appropriations into one
solicitation. For example, the latest combined solicitation was for a
program total of $50 million. When the program is funded at a level
greater than the current $12.5 million, the grant award cap should be

increased to maximize the program's effectiveness by allowing the fund-
ing of larger projects at airports when necessary and appropriate.

 
FISCAL IMPLICATIONS:

None

 
EFFECTIVE DATE:
This act shall take effect immediately.