[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.
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