December 11, 2024July 31, 2026

Compliance Guidance Letter 2024-02, Guidance for Aviation Fuel Tax Revenue Use Compliance Testing Plan

The FAA's Financial Compliance Division issued guidance in December 2024 establishing a testing plan to verify that states and local governments properly direct aviation fuel tax revenues toward airport and aviation purposes, as required by federal regulations. The plan outlines how jurisdictions are selected for review, what financial data they must submit, and how compliance is evaluated — with the State of Washington serving as the initial pilot case for the program.

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This FAA Compliance Guidance Letter establishes a testing plan for the Financial Compliance Division to assess whether states and local jurisdictions comply with federal regulations governing aviation fuel tax revenue use. It outlines the jurisdiction selection criteria, review process, and data requirements based on the 2014 FAA Policy and Procedures Concerning the Use of Airport Revenue. The State of Washington was selected as the pilot jurisdiction for initial monitoring and testing.

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As the source for federal transportation grants, the Puget Sound Regional Council was charged with developing a system to meet the growing need for commercial aviation. When the search for a second airport failed, they authorized the Port of Seattle to build the Third Runway, with a mandate to develop a noise abatement and mitigation program. In their effort to stop the Third Runway, the ACC argued over every detail of the Port's efforts--including property buyouts and sound insulation. The dispute was meant to be settled by a three member Expert Arbitration Panel. This is their final report. It finds 2-1, that the Port's program was insufficient in several respects. Despite that, funding for the Third Runway was approved by the PSRC, and the 'Port Package' program, proceeded largely unchanged. Expert Arbitration Panel's final decision finding that the Port of Seattle had not shown sufficient reduction in real on-the-ground noise impacts to satisfy noise reduction conditions required for approval of a third runway at Sea-Tac International Airport. The majority decision concluded the Port's noise abatement programs were insufficient despite being impressive in scope.

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