H. R. 1758—519
regulations prescribed under this subchapter. An offer shall state
the obligations to be assumed by the sponsor and the maximum
amount the Government will pay for the project from the amounts
authorized under chapter 481 of this title (except sections 48102(e),
48106, 48107, and 48110). At the request of the sponsor, an offer
of a grant for a project that will not be completed in one fiscal
year shall provide for the obligation of amounts apportioned or
to be apportioned to a sponsor under section 47114(c) of this title
for the fiscal years necessary to pay the Government’s share of
the cost of the project. An offer that is accepted in writing by
the sponsor is an agreement binding on the Government and the
sponsor. The Government may pay or be obligated to pay a project
cost only after a grant agreement for the project is signed.
(b) INCREASING GOVERNMENT’S SHARE UNDER THIS SUBCHAPTER
OR CHAPTER 475.—(1) When an offer has been accepted in writing,
the amount stated in the offer as the maximum amount the Govern-
ment will pay may be increased only as provided in paragraphs
(2) and (3) of this subsection.
(2)(A) For a project receiving assistance under a grant approved
under the Airport and Airway Improvement Act of 1982 before
October 1, 1987, the amount may be increased by not more than—
(i) 10 percent for an airport development project, except
a project for acquiring an interest in land; and
(ii) 50 percent of the total increase in allowable project
costs attributable to acquiring an interest in land, based on
current creditable appraisals.
(B) An increase under subparagraph (A) of this paragraph
may be paid only from amounts the Government recovers from
other grants made under this subchapter.
(3) For a project receiving assistance under a grant approved
under the Act, this subchapter, or chapter 475 of this title after
September 30, 1987, the amount may be increased—
(A) for an airport development project, by not more than
15 percent; and
(B) for a grant after September 30, 1992, to acquire an
interest in land for an airport (except a primary airport), by
not more than the greater of the following, based on current
creditable appraisals or a court award in a condemnation
proceeding:
(i) 15 percent; or
(ii) 25 percent of the total increase in allowable project
costs attributable to acquiring an interest in land.
(c) INCREASING GOVERNMENT’S SHARE UNDER AIRPORT AND AIR-
WAY DEVELOPMENT ACT OF 1970.—For a project receiving assistance
under a grant made under the Airport and Airway Development
Act of 1970, the maximum amount the Government will pay may
be increased by not more than 10 percent. An increase under
this subsection may be paid only from amounts the Government
recovers from other grants made under the Act.
(d) CHANGING WORKSCOPE.—With the consent of the sponsor,
the Secretary may amend a grant agreement made under this
subchapter to change the workscope of a project financed under
the grant if the amendment does not result in an increase in
the maximum amount the Government may pay under subsection
(b) of this section.
H. R. 1758—520
§ 47109. United States Government’s share of project costs
(a) GENERAL.—Except as provided in subsections (b) and (c)
of this section, the United States Government’s share of allowable
project costs is—
(1) 75 percent for a project at a primary airport having
at least .25 percent of the total number of passenger boardings
each year at all commercial service airports; and
(2) 90 percent for a project at any other airport.
(b) INCREASED GOVERNMENT SHARE.—If, under subsection (a)
of this section, the Government’s share of allowable costs of a
project in a State containing unappropriated and unreserved public
lands and nontaxable Indian lands (individual and tribal) of more
than 5 percent of the total area of all lands in the State, is less
than the share applied on June 30, 1975, under section 17(b)
of the Airport and Airway Development Act of 1970, the Govern-
ment’s share under subsection (a) of this section shall be increased
by the lesser of—
(1) 25 percent;
(2) one-half of the percentage that the area of unappropri-
ated and unreserved public lands and nontaxable Indian lands
in the State is of the total area of the State; or
(3) the percentage necessary to increase the Government’s
share to the percentage that applied on June 30, 1975, under
section 17(b) of the Act.
(c) LIMITATION.—Notwithstanding subsections (a) and (b) of
this section, the Government’s share of project costs allowable under
section 47110(d) of this title may not be more than 75 percent,
except that the Government’s share shall be 85 percent for a project
at a commercial service airport that does not have more than
.05 percent of the total annual passenger boardings in the United
States.
§ 47110. Allowable project costs
(a) GENERAL AUTHORITY.—Except as provided in section 47111
of this title, the United States Government may pay or be obligated
to pay, from amounts appropriated to carry out this subchapter,
a cost incurred in carrying out a project under this subchapter
only if the Secretary of Transportation decides the cost is allowable.
(b) ALLOWABLE COST STANDARDS.—A project cost is allowable—
(1) if the cost necessarily is incurred in carrying out the
project in compliance with the grant agreement made for the
project under this subchapter, including any cost a sponsor
incurs related to an audit the Secretary requires under section
47121(b) or (d) of this title;
(2) if the cost is incurred—
(A) after the grant agreement is executed and is for
airport development or airport planning carried out after
the grant agreement is executed; or
(B) after June 1, 1989, by the airport operator (regard-
less of when the grant agreement is executed) as part
of a Government-approved noise compatibility program
(including project formulation costs) and is consistent with
all applicable statutory and administrative requirements;
(3) to the extent the cost is reasonable in amount;
(4) if the cost is not incurred in a project for airport develop-
ment or airport planning for which other Government assist-
ance has been granted; and
H. R. 1758—521
(5) if the total costs allowed for the project are not more
than the amount stated in the grant agreement as the maxi-
mum the Government will pay (except as provided in section
47108(b) of this title).
(c) CERTAIN PRIOR COSTS AS ALLOWABLE COSTS.—The Secretary
may decide that a project cost under subsection (b)(2)(A) of this
section incurred after May 13, 1946, and before the date the grant
agreement is executed is allowable if it is—
(1) necessarily incurred in formulating an airport develop-
ment project, including costs incurred for field surveys, plans
and specifications, property interests in land or airspace, and
administration or other incidental items that would not have
been incurred except for the project; or
(2) necessarily and directly incurred in developing the work
scope of an airport planning project.
(d) TERMINAL DEVELOPMENT COSTS.—(1) The Secretary may
decide that the cost of terminal development (including multi-modal
terminal development) in a nonrevenue-producing public-use area
of a commercial service airport is allowable for an airport develop-
ment project at the airport—
(A) if the sponsor certifies that the airport, on the date
the grant application is submitted to the Secretary, has—
(i) all the safety equipment required for certification
of the airport under section 44706 of this title;
(ii) all the security equipment required by regulation;
and
(iii) provided for access, to the area of the airport
for passengers for boarding or exiting aircraft, to those
passengers boarding or exiting aircraft, except air carrier
aircraft;
(B) if the cost is directly related to moving passengers
and baggage in air commerce within the airport, including
vehicles for moving passengers between terminal facilities and
between terminal facilities and aircraft; and
(C) under terms necessary to protect the interests of the
Government.
(2) In making a decision under paragraph (1) of this subsection,
the Secretary may approve as allowable costs the expenses of termi-
nal development in a revenue-producing area and construction,
reconstruction, repair, and improvement in a nonrevenue-producing
parking lot if—
(A) the airport does not have more than .05 percent of
the total annual passenger boardings in the United States;
and
(B) the sponsor certifies that any needed airport develop-
ment project affecting safety, security, or capacity will not
be deferred because of the Secretary’s approval.
(e) LETTERS OF INTENT.—(1) The Secretary may issue a letter
of intent to the sponsor stating an intention to obligate from future
budget authority an amount, not more than the Government’s share
of allowable project costs, for an airport development project (includ-
ing costs of formulating the project) at a primary or reliever airport.
The letter shall establish a schedule under which the Secretary
will reimburse the sponsor for the Government’s share of allowable
project costs, as amounts become available, if the sponsor, after
the Secretary issues the letter, carries out the project without
receiving amounts under this subchapter.
H. R. 1758—522
(2) Paragraph (1) of this subsection applies to a project—
(A) about which the sponsor notifies the Secretary, before
the project begins, of the sponsor’s intent to carry out the
project;
(B) that will comply with all statutory and administrative
requirements that would apply to the project if it were carried
out with amounts made available under this subchapter; and
(C) the Secretary decides will enhance system-wide airport
capacity significantly and meets the criteria of section 47115(d)
of this title.
(3) A letter of intent issued under paragraph (1) of this sub-
section is not an obligation of the Government under section 1501
of title 31, and the letter is not deemed to be an administrative
commitment for financing. An obligation or administrative commit-
ment may be made only as amounts are provided in authorization
and appropriation laws.
(4) The total estimated amount of future Government obliga-
tions covered by all outstanding letters of intent under paragraph
(1) of this subsection may not be more than the amount authorized
to carry out section 48103 of this title, less an amount reasonably
estimated by the Secretary to be needed for grants under section
48103 that are not covered by a letter.
(5) A letter of intent issued under paragraph (1) of this sub-
section may not condition the obligation of amounts on the imposi-
tion of a passenger facility fee.
(f) NONALLOWABLE COSTS.—Except as provided in subsection
(d) of this section and section 47118(f) of this title, a cost is not
an allowable airport development project cost if it is for—
(1) constructing a public parking facility for passenger auto-
mobiles;
(2) constructing, altering, or repairing part of an airport
building, except to the extent the building will be used for
facilities or activities directly related to the safety of individuals
at the airport;
(3) decorative landscaping; or
(4) providing or installing sculpture or art works.
§ 47111. Payments under project grant agreements
(a) GENERAL AUTHORITY.—After making a project grant agree-
ment under this subchapter and consulting with the sponsor, the
Secretary of Transportation may decide when and in what amounts
payments under the agreement will be made. Payments totaling
not more than 90 percent of the United States Government’s share
of the project’s estimated allowable costs may be made before the
project is completed if the sponsor certifies to the Secretary that
the total amount expended from the advance payments at any
time will not be more than the cost of the airport development
work completed on the project at that time.
(b) RECOVERING PAYMENTS.—If the Secretary determines that
the total amount of payments made under a grant agreement under
this subchapter is more than the Government’s share of the total
allowable project costs, the Government may recover the excess
amount. If the Secretary finds that a project for which an advance
payment was made has not been completed within a reasonable
time, the Government may recover any part of the advance payment
for which the Government received no benefit.