scope:

a. This order establishes policy, guidance, and criteria for determining the correct appropriation in which to request and execute funding for specific services, equipment and personnel expenses. All items requested in the President's Budget Request must be consistent with annual Congressional appropriation language. If appropriations language and/or criteria do not address specific activities or items included in the request, additions or revisions to statutory language may be proposed with the concurrence of and assistance from the Office of Chief Counsel and submitted along with the President's Budget Request for Congressional consideration.

b. The Ops account funds the recurring cost of annual administrative, operating, and maintenance expenses for conducting the agency's business.

c. The F&E account funds capital investments related to air navigation facilities and equipment and aviation safety systems including acquisition costs, installation, testing, initial spares, initial maintenance contract and training for equipment, facilities, and other construction projects.

d. The R,E&D account funds the research and development (R&D) programs that improve the National Airspace System (NAS) by increasing its safety, security, productivity, capacity, and environmental compatibility to meet the expected NAS demands of the future. The R,E&D research activities are conducted prior to full-scale development/acquisition, which transfers to F&E upon completion.

e. The AIP account funds planning, development and administrative costs of a safe and efficient national airport system to satisfy the needs of the aviation interests of the United States. This includes airport improvement grants for development projects enhancing capacity, safety, and security, as well as for aircraft noise compatibility planning and programs.

Purpose. This order defines funding criteria for the Federal Aviation Administration's (FAA) Operations (Ops), Facilities and Equipment (F&E), Research, Engineering and Development (R,E&D) and Grants-in-Air for Airports (AIP) accounts. The formulation and execution phases of the budget cycle are to be carried out in accordance with the provisions of this order.