[DOCID:usc49-1018]
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 16, 1996]
[Document affected by Public Law 104-264 Section 144]
[CITE: 49USC47110]

 
                        TITLE 49--TRANSPORTATION

 
                     SUBTITLE VII--AVIATION PROGRAMS

 
                  PART B--AIRPORT DEVELOPMENT AND NOISE

 
                    CHAPTER 471--AIRPORT DEVELOPMENT

 
                    SUBCHAPTER I--AIRPORT IMPROVEMENT

 
Sec. 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)(A) if the cost is incurred after the grant agreement is 

    executed and is for airport development or airport planning carried 

    out after the grant agreement is executed;

        (B) if the cost is incurred after June 1, 1989, by the airport 

    operator (regardless of when the grant agreement is executed) as 

    part of a Government-approved noise compatability program (including 

    project formulation costs) and is consistent with all applicable 

    statutory and administrative requirements; or

        (C) if the Government's share is paid only with amounts 

    apportioned under section 47114(c)(1)(A) and (2) of this title and 

    if the cost is incurred--

            (i) during the fiscal year ending September 30, 1994;

            (ii) before a grant agreement is executed for the project 

        but according to an airport layout plan the Secretary approves 

        before the cost is incurred and all applicable statutory and 

        administrative requirements that would apply to the project if 

        the agreement had been executed; and

            (iii) for work related to a project for which a grant 

        agreement previously was executed during the fiscal year ending 

        September 30, 1994;



        (3) to the extent the cost is reasonable in amount;

        (4) if the cost is not incurred in a project for airport 

    development or airport planning for which other Government 

    assistance has been granted; and

        (5) if the total costs allowed for the project are not more than 

    the amount stated in the grant agreement as the maximum 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 development 

    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 development 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 terminal 

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 development 

    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 (including 

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.

    (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 subsection 

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 commitment may be made only 

as amounts are provided in authorization and appropriation laws.

    (4) The total estimated amount of future Government obligations 

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 subsection 

may not condition the obligation of amounts on the imposition of a 

passenger facility fee.

    (6) Limitation on statutory construction.--Nothing in this section 

shall be construed to prohibit the obligation of amounts pursuant to a 

letter of intent under this subsection in the same fiscal year as the 

letter of intent is issued.

    (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 

    automobiles;

        (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.



(Pub. L. 103-272, Sec. 1(e), July 5, 1994, 108 Stat. 1264; Pub. L. 103-

305, title I, Sec. 115, Aug. 23, 1994, 108 Stat. 1579; Pub. L. 103-429, 

Sec. 6(64), Oct. 31, 1994, 108 Stat. 4385.)



                                          Historical and Revision Notes                                         

                                                 Pub. L. 103-272                                                

----------------------------------------------------------------------------------------------------------------

            Revised Section                    Source (U.S. Code)               Source (Statutes at Large)      

----------------------------------------------------------------------------------------------------------------

47110(a)..............................  49 App.:2212(a) (1st, last       Sept. 3, 1982, Pub. L. 97-248, Sec.    

                                         sentences).                      513(a), 96 Stat. 689; Aug. 4, 1989,   

                                                                          Pub. L. 101-71, Sec.  3, 103 Stat.    

                                                                          181.                                  

47110(b)..............................  49 App.:2212(a) (2d sentence                                            

                                         cls. (1), (2) (words before                                            

                                         period), (3), (4)).                                                    

47110(c)..............................  49 App.:2212(a) (2d sentence                                            

                                         cl. (2) (words after period)).                                         

47110(d)..............................  49 App.:2212(b)(1), (6).         Sept. 3, 1982, Pub. L. 97-248, Sec.    

                                                                          513(b)(1), (6), 96 Stat. 691; Oct. 31,

                                                                          1992, Pub. L. 102-581, Sec.  110(a),  

                                                                          106 Stat. 4879.                       

47110(e)..............................  49 App.:2212(d).                 Sept. 3, 1982, Pub. L. 97-248, 96 Stat.

                                                                          324, Sec.  513(d); added Dec. 30,     

                                                                          1987, Pub. L. 100-223, Sec.  111(c),  

                                                                          101 Stat. 1503; Oct. 31, 1992, Pub. L.

                                                                          102-581, Sec.  111, 106 Stat. 4880.   

47110(f)..............................  49 App.:2212(c).                 Sept. 3, 1982, Pub. L. 97-248, Sec.    

                                                                          513(c), 96 Stat. 691; Dec. 30, 1987,  

                                                                          Pub. L. 100-223, Sec.  111(b), 101    

                                                                          Stat. 1503; Oct. 31, 1992, Pub. L. 102-

                                                                          581, Sec.  107(c)(2), 106 Stat. 4879. 

----------------------------------------------------------------------------------------------------------------



    In subsection (a), the words ``for airport development or airport 

planning'' are omitted because of the definition of ``project'' in 

section 47102 of the revised title. The text of 49 App.:2212(a) (last 

sentence) is omitted as surplus because of 49:322(a).

    In subsection (b)(1), the word ``approved'' is omitted as surplus 

because a project that was not approved could not be carried out in 

compliance with a grant agreement. The words ``in compliance with the 

grant agreement made for the project under this subchapter'' are 

substituted for ``in conformity with the terms and conditions of the 

grant agreement entered into in connection with the project'' to 

eliminate unnecessary words. The word ``sponsor'' is substituted for 

``recipient'' for clarity.

    In subsection (b)(2)(A), the words ``with respect to the project'' 

are omitted as unnecessary because ``the grant agreement'' means ``the 

grant agreement made for the project'' referred to in clause (1) of this 

subsection. The words ``under the project'' are omitted as surplus.

    Subsection (b)(3) is substituted for ``in the opinion of the 

Secretary it is reasonable in amount, and if the Secretary determines 

that a project cost is unreasonable in amount, the Secretary may allow 

as an allowable project cost only so much of such project cost as the 

Secretary determines to be reasonable'' to eliminate unnecessary words.

    Subsection (b)(5) is substituted for ``except that in no event may 

the Secretary allow project costs in excess of the definite amount 

stated in the grant agreement except to the extent authorized by section 

2211(b) of this Appendix'' for consistency in this section.

    In subsection (c), before clause (1), the words ``The Secretary may 

decide that a project cost . . . is allowable'' are substituted for 

``However, the allowable costs of a project . . . may include . . . and 

the allowable costs of a project . . . may include'' for clarity and 

consistency in the revised title. The words ``incurred after May 13, 

1946, and before the date the grant agreement is executed'' are 

substituted for ``which were incurred prior to the execution of the 

grant agreement and subsequent to May 13, 1946'' and ``which were 

incurred subsequent to May 13, 1946'' to eliminate unnecessary words. In 

clause (1), the words ``preparation of'', ``acquisition of'', ``by the 

sponsor specifically in connection with the accomplishment of the 

project for airport development'' are omitted as surplus. The words 

``property interests in land or airspace'' are substituted for ``land or 

interests therein or easements through or other interests in airspace'' 

to eliminate unnecessary words.

    In subsection (d)(1), before clause (A), the words ``The Secretary 

may decide that the cost . . . is allowable'' are substituted for ``the 

Secretary may approve, as allowable project costs'' and ``The Secretary 

shall approve project costs allowable under paragraph (1) of this 

subsection'' for clarity and consistency in this section. In clause (B), 

the words ``the boundaries of'' are omitted as surplus. In clause (C), 

the words ``and conditions'' are omitted as being included in ``terms''.

    In subsection (d)(2), the words ``In making a decision under 

paragraph (1) of this subsection, the Secretary may approve as allowable 

costs'' are substituted for ``In the case of a commercial service 

airport . . . the Secretary may approve, under the preceding sentence as 

allowable project costs'' for consistency in this subsection.

    In subsection (e)(1), the word ``sponsor'' is substituted for 

``applicant'' for consistency. The words ``stipulated as'' and ``Subject 

to the provisions of this paragraph'' are omitted as surplus. The word 

``reimburse'' is substituted for ``make payments under paragraph (2) of 

this subsection'' and ``pay'' for clarity. The words ``payable on 

account of such project in accordance with such letter of intent'' are 

omitted as surplus.

    In subsection (e)(2), before clause (A), the text of 49 

App.:2212(d)(1)(C) (last sentence) is omitted as obsolete.

    In subsection (e)(3), the words ``A letter of intent issued'' are 

substituted for ``action'' for clarity. The word ``deemed'' before ``an 

obligation'' is omitted as surplus.

    In subsection (f)(2), the words ``of a hangar or'' are omitted as 

being included in ``airport building''.





                             Pub. L. 103-429



    The source credits for all of subsection (b) are included for 

clarity though only subsection (b)(2) is affected by the amendment. The 

source credits for 49:47110(c) are included to correct a mistake on p. 

405 of H. R. Rept. 103-180 (103d Cong., 1st Sess., July 15, 1993).



----------------------------------------------------------------------------------------------------------------

            Revised Section                    Source (U.S. Code)               Source (Statutes at Large)      

----------------------------------------------------------------------------------------------------------------

47110(b)..............................  49 App.:2212(a) (2d sentence     Sept. 3, 1982, Pub. L. 97-248, Sec.    

                                         cls. (1), (2)(A) (words before   513(a) (2d sentence), as amended May  

                                         period), (B), (3), (4)).         26, 1994, Pub. L. 103-260, Sec.  106, 

                                                                          108 Stat. 699.                        

47110(c)..............................  49 App.:2212(a) (2d sentence                                            

                                         cl. (2)(A) (words after                                                

                                         period).                                                               

----------------------------------------------------------------------------------------------------------------



    In subsection (b)(2)(C)(ii), the words ``before the cost is 

incurred'' are added for clarity.





                               Amendments



    1994--Subsec. (b)(2). Pub. L. 103-429 amended par. (2) generally. 

Prior to amendment, par. (2) read as follows: ``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 (regardless 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;''.

    Subsec. (e)(6). Pub. L. 103-305 added par. (6).





    Letters of Intent; Duration of Authority and Approval by Congress



    Pub. L. 102-388, title III, Sec. 320, Oct. 6, 1992, 106 Stat. 1546, 

provided that: ``The authority conferred by section 513(d) of the 

Airport and Airway Improvement Act of 1982, as amended [see subsec. (e) 

of this section], to issue letters of intent shall remain in effect 

subsequent to September 30, 1992. Letters of intent may be issued under 

such subsection to applicants determined to be qualified under such Act 

[substantially repealed by Pub. L. 103-272, Sec. 7(b), July 5, 1994, 108 

Stat. 1379, and reenacted by first section thereof as this subchapter]: 

Provided, That, notwithstanding any other provision of law, all such 

letters of intent in excess of $10,000,000 shall be submitted for 

approval to the Committees on Appropriations of the Senate and the House 

of Representatives; the Committee on Commerce, Science, and 

Transportation of the Senate; and the Committee on Public Works and 

Transportation [now Committee on Transportation and Infrastructure] of 

the House of Representatives.'' Similar provisions were contained in the 

following prior appropriation acts:

    Pub. L. 102-143, title III, Sec. 320, Oct. 28, 1991, 105 Stat. 942.

    Pub. L. 101-516, title III, Sec. 320, Nov. 5, 1990, 104 Stat. 2181.

    Pub. L. 101-164 title III, Sec. 326, Nov. 21, 1989, 103 Stat. 1096.

    Pub. L. 100-457, title III, Sec. 334, Sept. 30, 1988, 102 Stat. 

2153.



                  Section Referred to in Other Sections



    This section is referred to in sections 40117, 47108, 47119 of this 

title.



Return to United States Code


NPC Menu Bar NPC Home Page Support NPC Ask NPC Search the NPC Home Page NPC QuietNet NPC Resources NPC Hearing Loss and Occupational Noise Library NPC Noise News NPC Law Library NPC Library