
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document affected by Public Law 106-181 Section 127]
[Document affected by Public Law 107-71 Section 119(a)(2)]
[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 paragraphs (1) and (2) of section 47114(c) of this 
    title and if the cost is incurred--
            (i) after September 30, 1996;
            (ii) before a grant agreement is executed for the project; 
        and
            (iii) in accordance with an airport layout plan approved by 
        the Secretary and with all statutory and administrative 
        requirements that would have been applicable to the project if 
        the project had been carried out after the grant agreement had 
        been executed;

        (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.

    (g) Use of Discretionary Funds.--A project for which cost 
reimbursement is provided under subsection (b)(2)(C) shall not receive 
priority consideration with respect to the use of discretionary funds 
made available under section 47115 of this title even if the amounts 
made available under paragraphs (1) and (2) of section 47114(c) are not 
sufficient to cover the Government's share of the cost of \1\ project.
---------------------------------------------------------------------------
    \1\ So in original. Probably should be ``of the''.
---------------------------------------------------------------------------

(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; Pub. L. 104-264, title I, 
Sec. 144, Oct. 9, 1996, 110 Stat. 3222.)

                                          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 S
tat. 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 S
tat. 1503; Oct. 31, 1992, Pub. L.
                                                                          102-5
81, 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, 1
994, Pub. L. 103-260, Sec.  106,
                                                                          108 S
tat. 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

    1996--Subsec. (b)(2)(C). Pub. L. 104-264, Sec. 144(a), amended 
subpar. (C) generally. Prior to amendment, subpar. (C) read as follows: 
``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;''.
    Subsec. (g). Pub. L. 104-264, Sec. 144(b), added subsec. (g).
    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).


                    Effective Date of 1996 Amendment

    Except as otherwise specifically provided, amendment by Pub. L. 104-
264 applicable only to fiscal years beginning after Sept. 30, 1996, and 
not to be construed as affecting funds made available for a fiscal year 
ending before Oct. 1, 1996, see section 3 of Pub. L. 104-264, set out as 
a note under section 106 of this title.


    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, 47115, 47119 
of this title.
