TITLE 49 - US CODE - SUBCHAPTER I - AIRPORT IMPROVEMENT

49 USC 47101 - Policies

(a) General.— 
It is the policy of the United States
(1) that the safe operation of the airport and airway system is the highest aviation priority;
(2) that aviation facilities be constructed and operated to minimize current and projected noise impact on nearby communities;
(3) to give special emphasis to developing reliever airports;

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(4) that appropriate provisions should be made to make the development and enhancement of cargo hub airports easier;
(5) to encourage the development of intermodal connections on airport property between aeronautical and other transportation modes and systems to serve air transportation passengers and cargo efficiently and effectively and promote economic development;
(6) that airport development projects under this subchapter provide for the protection and enhancement of natural resources and the quality of the environment of the United States;
(7) that airport construction and improvement projects that increase the capacity of facilities to accommodate passenger and cargo traffic be undertaken to the maximum feasible extent so that safety and efficiency increase and delays decrease;
(8) to ensure that nonaviation usage of the navigable airspace be accommodated but not allowed to decrease the safety and capacity of the airspace and airport system;
(9) that artificial restrictions on airport capacity
(A) are not in the public interest;
(B) should be imposed to alleviate air traffic delays only after other reasonably available and less burdensome alternatives have been tried; and
(C) should not discriminate unjustly between categories and classes of aircraft;
(10) that special emphasis should be placed on converting appropriate former military air bases to civil use and identifying and improving additional joint-use facilities;

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(11) that the airport improvement program should be administered to encourage projects that employ innovative technology (including integrated in-pavement lighting systems for runways and taxiways and other runway and taxiway incursion prevention devices), concepts, and approaches that will promote safety, capacity, and efficiency improvements in the construction of airports and in the air transportation system (including the development and use of innovative concrete and other materials in the construction of airport facilities to minimize initial laydown costs, minimize time out of service, and maximize lifecycle durability) and to encourage and solicit innovative technology proposals and activities in the expenditure of funding pursuant to this subchapter;
(12) that airport fees, rates, and charges must be reasonable and may only be used for purposes not prohibited by this subchapter; and
(13) that airports should be as self-sustaining as possible under the circumstances existing at each particular airport and in establishing new fees, rates, and charges, and generating revenues from all sources, airport owners and operators should not seek to create revenue surpluses that exceed the amounts to be used for airport system purposes and for other purposes for which airport revenues may be spent under section 47107 (b)(1) of this title, including reasonable reserves and other funds to facilitate financing and cover contingencies.
(b) National Transportation Policy.— 

(1) It is a goal of the United States to develop a national intermodal transportation system that transports passengers and property in an efficient manner. The future economic direction of the United States depends on its ability to confront directly the enormous challenges of the global economy, declining productivity growth, energy vulnerability, air pollution, and the need to rebuild the infrastructure of the United States.
(2) United States leadership in the world economy, the expanding wealth of the United States, the competitiveness of the industry of the United States, the standard of living, and the quality of life are at stake.
(3) A national intermodal transportation system is a coordinated, flexible network of diverse but complementary forms of transportation that transports passengers and property in the most efficient manner. By reducing transportation costs, these intermodal systems will enhance the ability of the industry of the United States to compete in the global marketplace.
(4) All forms of transportation, including aviation and other transportation systems of the future, will be full partners in the effort to reduce energy consumption and air pollution while promoting economic development.
(5) An intermodal transportation system consists of transportation hubs that connect different forms of appropriate transportation and provides users with the most efficient means of transportation and with access to commercial centers, business locations, population centers, and the vast rural areas of the United States, as well as providing links to other forms of transportation and to intercity connections.
(6) Intermodality and flexibility are paramount issues in the process of developing an integrated system that will obtain the optimum yield of United States resources.
(7) The United States transportation infrastructure must be reshaped to provide the economic underpinnings for the United States to compete in the 21st century global economy. The United States can no longer rely on the sheer size of its economy to dominate international economic rivals and must recognize fully that its economy is no longer a separate entity but is part of the global marketplace. The future economic prosperity of the United States depends on its ability to compete in an international marketplace that is teeming with competitors but in which a full one-quarter of the economic activity of the United States takes place.
(8) The United States must make a national commitment to rebuild its infrastructure through development of a national intermodal transportation system. The United States must provide the foundation for its industries to improve productivity and their ability to compete in the global economy with a system that will transport passengers and property in an efficient manner.
(c) Capacity Expansion and Noise Abatement.— 
It is in the public interest to recognize the effects of airport capacity expansion projects on aircraft noise. Efforts to increase capacity through any means can have an impact on surrounding communities. Noncompatible land uses around airports must be reduced and efforts to mitigate noise must be given a high priority.
(d) Consistency With Air Commerce and Safety Policies.— 
Each airport and airway program should be carried out consistently with section 40101 (a), (b), (d), and (f) of this title to foster competition, prevent unfair methods of competition in air transportation, maintain essential air transportation, and prevent unjust and discriminatory practices, including as the practices may be applied between categories and classes of aircraft.
(e) Adequacy of Navigation Aids and Airport Facilities.— 
This subchapter should be carried out to provide adequate navigation aids and airport facilities for places at which scheduled commercial air service is provided. The facilities provided may include
(1) reliever airports; and
(2) heliports designated by the Secretary of Transportation to relieve congestion at commercial service airports by diverting aircraft passengers from fixed-wing aircraft to helicopter carriers.
(f) Maximum Use of Safety Facilities.— 
This subchapter should be carried out consistently with a comprehensive airspace system plan, giving highest priority to commercial service airports, to maximize the use of safety facilities, including installing, operating, and maintaining, to the extent possible with available money and considering other safety needs
(1) electronic or visual vertical guidance on each runway;
(2) grooving or friction treatment of each primary and secondary runway;
(3) distance-to-go signs for each primary and secondary runway;
(4) a precision approach system, a vertical visual guidance system, and a full approach light system for each primary runway;
(5) a nonprecision instrument approach for each secondary runway;
(6) runway end identifier lights on each runway that does not have an approach light system;
(7) a surface movement radar system at each category III airport;
(8) a taxiway lighting and sign system;
(9) runway edge lighting and marking;
(10) radar approach coverage for each airport terminal area; and
(11) runway and taxiway incursion prevention devices, including integrated in-pavement lighting systems for runways and taxiways.
(g) Intermodal Planning.— 
To carry out the policy of subsection (a)(5) of this section, the Secretary of Transportation shall take each of the following actions:
(1) Coordination in development of airport plans and programs.— 
Cooperate with State and local officials in developing airport plans and programs that are based on overall transportation needs. The airport plans and programs shall be developed in coordination with other transportation planning and considering comprehensive long-range land-use plans and overall social, economic, environmental, system performance, and energy conservation objectives. The process of developing airport plans and programs shall be continuing, cooperative, and comprehensive to the degree appropriate to the complexity of the transportation problems.
(2) Goals for airport master and system plans.— 
Encourage airport sponsors and State and local officials to develop airport master plans and airport system plans that
(A) foster effective coordination between aviation planning and metropolitan planning;
(B) include an evaluation of aviation needs within the context of multimodal planning; and
(C) are integrated with metropolitan plans to ensure that airport development proposals include adequate consideration of land use and ground transportation access.
(3) Representation of airport operators on mpo’s.— 
Encourage metropolitan planning organizations, particularly in areas with populations greater than 200,000, to establish membership positions for airport operators.
(h) Consultation.— 
To carry out the policy of subsection (a)(6) of this section, the Secretary of Transportation shall consult with the Secretary of the Interior and the Administrator of the Environmental Protection Agency about any project included in a project grant application involving the location of an airport or runway, or a major runway extension, that may have a significant effect on
(1) natural resources, including fish and wildlife;
(2) natural, scenic, and recreation assets;
(3) water and air quality; or
(4) another factor affecting the environment.

49 USC 47102 - Definitions

In this subchapter
(1) air carrier airport means a public airport regularly served by
(A) an air carrier certificated by the Secretary of Transportation under section 41102 of this title (except a charter air carrier); or
(B) at least one air carrier
(i) operating under an exemption from section 41101 (a)(1) of this title that the Secretary grants; and
(ii) having at least 2,500 passenger boardings at the airport during the prior calendar year.
(2) airport
(A) means
(i) an area of land or water used or intended to be used for the landing and taking off of aircraft;
(ii) an appurtenant area used or intended to be used for airport buildings or other airport facilities or rights of way; and
(iii) airport buildings and facilities located in any of those areas; and
(B) includes a heliport.
(3) airport development means the following activities, if undertaken by the sponsor, owner, or operator of a public-use airport:
(A) constructing, repairing, or improving a public-use airport, including
(i) removing, lowering, relocating, marking, and lighting an airport hazard; and
(ii) preparing a plan or specification, including carrying out a field investigation.
(B) acquiring for, or installing at, a public-use airport
(i) a navigation aid or another aid (including a precision approach system) used by aircraft for landing at or taking off from the airport, including preparing the site as required by the acquisition or installation;
(ii) safety or security equipment, including explosive detection devices, universal access systems, and emergency call boxes, the Secretary requires by regulation for, or approves as contributing significantly to, the safety or security of individuals and property at the airport and integrated in-pavement lighting systems for runways and taxiways and other runway and taxiway incursion prevention devices;
(iii) equipment to remove snow, to measure runway surface friction, or for aviation-related weather reporting, including closed circuit weather surveillance equipment if the airport is located in Alaska;
(iv) firefighting and rescue equipment at an airport that serves scheduled passenger operations of air carrier aircraft designed for more than 20 passenger seats;
(v) aircraft deicing equipment and structures (except aircraft deicing fluids and storage facilities for the equipment and fluids);
(vi) interactive training systems;
(vii) windshear detection equipment that is certified by the Administrator of the Federal Aviation Administration;
(viii) stainless steel adjustable lighting extensions approved by the Administrator;
(ix) engineered materials arresting systems as described in the Advisory Circular No. 150/522022 published by the Federal Aviation Administration on August 21, 1998, including any revision to the circular; and
(x) replacement of baggage conveyor systems, and reconfiguration of terminal baggage areas, that the Secretary determines are necessary to install bulk explosive detection devices; except that such activities shall be eligible for funding under this subchapter only using amounts apportioned under section 47114.
(C) acquiring an interest in land or airspace, including land for future airport development, that is needed
(i) to carry out airport development described in subclause (A) or (B) of this clause; or
(ii) to remove or mitigate an existing airport hazard or prevent or limit the creation of a new airport hazard.
(D) acquiring land for, or constructing, a burn area training structure on or off the airport to provide live fire drill training for aircraft rescue and firefighting personnel required to receive the training under regulations the Secretary prescribes, including basic equipment and minimum structures to support the training under standards the Administrator of the Federal Aviation Administration prescribes.
(E) relocating after December 31, 1991, an air traffic control tower and any navigational aid (including radar) if the relocation is necessary to carry out a project approved by the Secretary under this subchapter or under section 40117.
(F) constructing, reconstructing, repairing, or improving an airport, or purchasing capital equipment for an airport, if necessary for compliance with the responsibilities of the operator or owner of the airport under the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.), the Clean Air Act (42 U.S.C. 7401 et seq.), and the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.), except constructing or purchasing capital equipment that would benefit primarily a revenue-producing area of the airport used by a nonaeronautical business.
(G) acquiring land for, or work necessary to construct, a pad suitable for deicing aircraft before takeoff at a commercial service airport, including constructing or reconstructing paved areas, drainage collection structures, treatment and discharge systems, appropriate lighting, paved access for deicing vehicles and aircraft, but not including acquiring aircraft deicing fluids or constructing or reconstructing storage facilities for aircraft deicing equipment or fluids.
(H) routine work to preserve and extend the useful life of runways, taxiways, and aprons at nonhub airports and airports that are not primary airports, under guidelines issued by the Administrator of the Federal Aviation Administration.
(I) constructing, reconstructing, or improving an airport, or purchasing nonrevenue generating capital equipment to be owned by an airport, for the purpose of transferring passengers, cargo, or baggage between the aeronautical and ground transportation modes on airport property.
(J) constructing an air traffic control tower or acquiring and installing air traffic control, communications, and related equipment at an air traffic control tower under the terms specified in section 47124 (b)(4).
(K) work necessary to construct or modify airport facilities to provide low-emission fuel systems, gate electrification, and other related air quality improvements at a commercial service airport if the airport is located in an air quality nonattainment or maintenance area (as defined in sections 171(2) and 175A of the Clean Air Act (42 U.S.C. 7501 (2); 7505a)[1] and if such project will result in an airport receiving appropriate emission credits, as described in section 47139.
(L) a project for the acquisition or conversion of vehicles and ground support equipment, owned by a commercial service airport, to low-emission technology, if the airport is located in an air quality nonattainment or maintenance area (as defined in sections 171(2) and 175A of the Clean Air Act (42 U.S.C. 7501 (2); 7505a)[1] and if such project will result in an airport receiving appropriate emission credits as described in section 47139.
(4) airport hazard means a structure or object of natural growth located on or near a public-use airport, or a use of land near the airport, that obstructs or otherwise is hazardous to the landing or taking off of aircraft at or from the airport.
(5) airport planning means planning as defined by regulations the Secretary prescribes and includes integrated airport system planning.
(6) amount made available under section 48103 or amount newly made available means the amount authorized for grants under section 48103 as that amount may be limited in that year by a subsequent law, but as determined without regard to grant obligation recoveries made in that year or amounts covered by section 47107 (f).
(7) commercial service airport means a public airport in a State that the Secretary determines has at least 2,500 passenger boardings each year and is receiving scheduled passenger aircraft service.
(8) integrated airport system planning means developing for planning purposes information and guidance to decide the extent, kind, location, and timing of airport development needed in a specific area to establish a viable, balanced, and integrated system of public-use airports, including
(A) identifying system needs;
(B) developing an estimate of systemwide development costs;
(C) conducting studies, surveys, and other planning actions, including those related to airport access, needed to decide which aeronautical needs should be met by a system of airports; and
(D) standards prescribed by a State, except standards for safety of approaches, for airport development at nonprimary public-use airports.
(9) landed weight means the weight of aircraft transporting only cargo in intrastate, interstate, and foreign air transportation, as the Secretary determines under regulations the Secretary prescribes.
(10) large hub airport means a commercial service airport that has at least 1.0 percent of the passenger boardings.
(11) low-emission technology means technology for vehicles and equipment whose emission performance is the best achievable under emission standards established by the Environmental Protection Agency and that relies exclusively on alternative fuels that are substantially nonpetroleum based, as defined by the Department of Energy, but not excluding hybrid systems or natural gas powered vehicles.
(12) medium hub airport means a commercial service airport that has at least 0.25 percent but less than 1.0 percent of the passenger boardings.
(13) nonhub airport means a commercial service airport that has less than 0.05 percent of the passenger boardings.
(14) passenger boardings
(A) means, unless the context indicates otherwise, revenue passenger boardings in the United States in the prior calendar year on an aircraft in service in air commerce, as the Secretary determines under regulations the Secretary prescribes; and
(B) includes passengers who continue on an aircraft in international flight that stops at an airport in the 48 contiguous States, Alaska, or Hawaii for a nontraffic purpose.
(15) primary airport means a commercial service airport the Secretary determines to have more than 10,000 passenger boardings each year.
(16) project means a project, separate projects included in one project grant application, or all projects to be undertaken at an airport in a fiscal year, to achieve airport development or airport planning.
(17) project cost means a cost involved in carrying out a project.
(18) project grant means a grant of money the Secretary makes to a sponsor to carry out at least one project.
(19) public agency means
(A) a State or political subdivision of a State;
(B) a tax-supported organization; or
(C) an Indian tribe or pueblo.
(20) public airport means an airport used or intended to be used for public purposes
(A) that is under the control of a public agency; and
(B) of which the area used or intended to be used for the landing, taking off, or surface maneuvering of aircraft is publicly owned.
(21) public-use airport means
(A) a public airport; or
(B) a privately-owned airport used or intended to be used for public purposes that is
(i) a reliever airport; or
(ii) determined by the Secretary to have at least 2,500 passenger boardings each year and to receive scheduled passenger aircraft service.
(22) reliever airport means an airport the Secretary designates to relieve congestion at a commercial service airport and to provide more general aviation access to the overall community.
(23) small hub airport means a commercial service airport that has at least 0.05 percent but less than 0.25 percent of the passenger boardings.
(24) sponsor means
(A) a public agency that submits to the Secretary under this subchapter an application for financial assistance; and
(B) a private owner of a public-use airport that submits to the Secretary under this subchapter an application for financial assistance for the airport.
(25) State means a State of the United States, the District of Columbia, Puerto Rico, the Virgin Islands, American Samoa, the Northern Mariana Islands, the Trust Territory of the Pacific Islands, and Guam.
[1] So in original. There probably should be a second closing parenthesis.

49 USC 47103 - National plan of integrated airport systems

(a) General Requirements and Considerations.— 
The Secretary of Transportation shall maintain the plan for developing public-use airports in the United States, named the national plan of integrated airport systems. The plan shall include the kind and estimated cost of eligible airport development the Secretary of Transportation considers necessary to provide a safe, efficient, and integrated system of public-use airports adequate to anticipate and meet the needs of civil aeronautics, to meet the national defense requirements of the Secretary of Defense, and to meet identified needs of the United States Postal Service. Airport development included in the plan may not be limited to meeting the needs of any particular classes or categories of public-use airports. In maintaining the plan, the Secretary of Transportation shall consider the needs of each segment of civil aviation and the relationship of each airport to
(1) the rest of the transportation system in the particular area;
(2) forecasted technological developments in aeronautics; and
(3) forecasted developments in other modes of intercity transportation.
(b) Specific Requirements.— 
In maintaining the plan, the Secretary of Transportation shall
(1) to the extent possible and as appropriate, consult with departments, agencies, and instrumentalities of the United States Government, with public agencies, and with the aviation community;
(2) consider tall structures that reduce safety or airport capacity; and
(3) make every reasonable effort to address the needs of air cargo operations, Short Takeoff and Landing/Very Short Takeoff and Landing aircraft operations, and rotary wing aircraft operations.
(c) Availability of Domestic Military Airports and Airport Facilities.— 
To the extent possible, the Secretary of Defense shall make domestic military airports and airport facilities available for civil use. In advising the Secretary of Transportation under subsection (a) of this section, the Secretary of Defense shall indicate the extent to which domestic military airports and airport facilities are available for civil use.
(d) Publication.— 
The Secretary of Transportation shall publish the status of the plan every 2 years.

49 USC 47104 - Project grant authority

(a) General Authority.— 
To maintain a safe and efficient nationwide system of public-use airports that meets the present and future needs of civil aeronautics, the Secretary of Transportation may make project grants under this subchapter from the Airport and Airway Trust Fund.
(b) Incurring Obligations.— 
The Secretary may incur obligations to make grants from amounts made available under section 48103 of this title as soon as the amounts are apportioned under section 47114 (c) and (d)(2) of this title.
(c) Expiration of Authority.— 
After September 30, 2007, the Secretary may not incur obligations under subsection (b) of this section, except for obligations of amounts
(1) remaining available after that date under section 47117 (b) of this title; or
(2) recovered by the United States Government from grants made under this chapter if the amounts are obligated only for increases under section 47108 (b)(2) and (3) of this title in the maximum amount of obligations of the Government for any other grant made under this title.

49 USC 47105 - Project grant applications

(a) Submission and Consultation.— 

(1) An application for a project grant under this subchapter may be submitted to the Secretary of Transportation by
(A) a sponsor; or
(B) a State, as the only sponsor, for an airport development project benefitting 1 or more airports in the State or for airport planning for projects for 1 or more airports in the State if
(i) the sponsor of each airport gives written consent that the State be the applicant;
(ii) the Secretary is satisfied there is administrative merit and aeronautical benefit in the State being the sponsor; and
(iii) an acceptable agreement exists that ensures that the State will comply with appropriate grant conditions and other assurances the Secretary requires.
(2) Before deciding to undertake an airport development project at an airport under this subchapter, a sponsor shall consult with the airport users that will be affected by the project.
(3) This subsection does not authorize a public agency that is subject to the laws of a State to apply for a project grant in violation of a law of the State.
(b) Contents and Form.— 
An application for a project grant under this subchapter
(1) shall describe the project proposed to be undertaken;
(2) may propose a project only for a public-use airport included in the current national plan of integrated airport systems;
(3) may propose airport development only if the development complies with standards the Secretary prescribes or approves, including standards for site location, airport layout, site preparation, paving, lighting, and safety of approaches; and
(4) shall be in the form and contain other information the Secretary prescribes.
(c) State Standards for Airport Development.— 
The Secretary may approve standards (except standards for safety of approaches) that a State prescribes for airport development at nonprimary public-use airports in the State. On approval under this subsection, a States standards apply to the nonprimary public-use airports in the State instead of the comparable standards prescribed by the Secretary under subsection (b)(3) of this section. The Secretary, or the State with the approval of the Secretary, may revise standards approved under this subsection.
(d) Certification of Compliance.— 
The Secretary may require a sponsor to certify that the sponsor will comply with this subchapter in carrying out the project. The Secretary may rescind the acceptance of a certification at any time. This subsection does not affect an obligation or responsibility of the Secretary under another law of the United States.
(e) Preventive Maintenance.— 
After January 1, 1995, the Secretary may approve an application under this subchapter for the replacement or reconstruction of pavement at an airport only if the sponsor has provided such assurances or certifications as the Secretary may determine appropriate that such airport has implemented an effective airport pavement maintenance-management program. The Secretary may require such reports on pavement condition and pavement management programs as the Secretary determines may be useful.
(f) Notification.— 
The sponsor of an airport for which an amount is apportioned under section 47114 (c) of this title shall notify the Secretary of the fiscal year in which the sponsor intends to submit a project grant application for the apportioned amount. The notification shall be given by the time and contain the information the Secretary prescribes.

49 USC 47106 - Project grant application approval conditioned on satisfaction of project requirements

(a) Project Grant Application Approval.— 
The Secretary of Transportation may approve an application under this subchapter for a project grant only if the Secretary is satisfied that
(1) the project is consistent with plans (existing at the time the project is approved) of public agencies authorized by the State in which the airport is located to plan for the development of the area surrounding the airport;
(2) the project will contribute to carrying out this subchapter;
(3) enough money is available to pay the project costs that will not be paid by the United States Government under this subchapter;
(4) the project will be completed without unreasonable delay; and
(5) the sponsor has authority to carry out the project as proposed.
(b) Airport Development Project Grant Application Approval.— 
The Secretary may approve an application under this subchapter for an airport development project grant for an airport only if the Secretary is satisfied that
(1) the sponsor, a public agency, or the Government holds good title to the areas of the airport used or intended to be used for the landing, taking off, or surface maneuvering of aircraft, or that good title will be acquired;
(2) the interests of the community in or near which the project may be located have been given fair consideration; and
(3) the application provides touchdown zone and centerline runway lighting, high intensity runway lighting, or land necessary for installing approach light systems that the Secretary, considering the category of the airport and the kind and volume of traffic using it, decides is necessary for safe and efficient use of the airport by aircraft.
(c) Environmental Requirements.— 

(1) The Secretary may approve an application under this subchapter for an airport development project involving the location of an airport or runway or a major runway extension
(A) only if the sponsor certifies to the Secretary that
(i) an opportunity for a public hearing was given to consider the economic, social, and environmental effects of the location and the locations consistency with the objectives of any planning that the community has carried out;
(ii) the airport management board has voting representation from the communities in which the project is located or has advised the communities that they have the right to petition the Secretary about a proposed project; and
(iii) with respect to an airport development project involving the location of an airport, runway, or major runway extension at a medium or large hub airport, the airport sponsor has made available to and has provided upon request to the metropolitan planning organization in the area in which the airport is located, if any, a copy of the proposed amendment to the airport layout plan to depict the project and a copy of any airport master plan in which the project is described or depicted; and
(B) if the application is found to have a significant adverse effect on natural resources, including fish and wildlife, natural, scenic, and recreation assets, water and air quality, or another factor affecting the environment, only after finding that no possible and prudent alternative to the project exists and that every reasonable step has been taken to minimize the adverse effect.
(2) The Secretary may approve an application under this subchapter for an airport development project that does not involve the location of an airport or runway, or a major runway extension, at an existing airport without requiring an environmental impact statement related to noise for the project if
(A) completing the project would allow operations at the airport involving aircraft complying with the noise standards prescribed for stage 3 aircraft in section 36.1 of title 14, Code of Federal Regulations, to replace existing operations involving aircraft that do not comply with those standards; and
(B) the project meets the other requirements under this subchapter.
(3) At the Secretarys request, the sponsor shall give the Secretary a copy of the transcript of any hearing held under paragraph (1)(A) of this subsection.
(4) The Secretary may make a finding under paragraph (1)(B) of this subsection only after completely reviewing the matter. The review and finding must be a matter of public record.
(d) Withholding Approval.— 

(1) The Secretary may withhold approval of an application under this subchapter for amounts apportioned under section 47114 (c) and (e) of this title for violating an assurance or requirement of this subchapter only if
(A) the Secretary provides the sponsor an opportunity for a hearing; and
(B) not later than 180 days after the later of the date of the application or the date the Secretary discovers the noncompliance, the Secretary finds that a violation has occurred.
(2) The 180-day period may be extended by
(A) agreement between the Secretary and the sponsor; or
(B) the hearing officer if the officer decides an extension is necessary because the sponsor did not follow the schedule the officer established.
(3) A person adversely affected by an order of the Secretary withholding approval may obtain review of the order by filing a petition in the United States Court of Appeals for the District of Columbia Circuit or in the court of appeals of the United States for the circuit in which the project is located. The action must be brought not later than 60 days after the order is served on the petitioner.
(e) Reports Relating to Construction of Certain New Hub Airports.— 
At least 90 days prior to the approval under this subchapter of a project grant application for construction of a new hub airport that is expected to have 0.25 percent or more of the total annual enplanements in the United States, the Secretary shall submit to Congress a report analyzing the anticipated impact of such proposed new airport on
(1) the fees charged to air carriers (including landing fees), and other costs that will be incurred by air carriers, for using the proposed airport;
(2) air transportation that will be provided in the geographic region of the proposed airport; and
(3) the availability and cost of providing air transportation to rural areas in such geographic region.
(f) Competition Plans.— 

(1) Prohibition.— 
Beginning in fiscal year 2001, no passenger facility fee may be approved for a covered airport under section 40117 and no grant may be made under this subchapter for a covered airport unless the airport has submitted to the Secretary a written competition plan in accordance with this subsection.
(2) Contents.— 
A competition plan under this subsection shall include information on the availability of airport gates and related facilities, leasing and sub-leasing arrangements, gate-use requirements, patterns of air service, gate-assignment policy, financial constraints, airport controls over air- and ground-side capacity, whether the airport intends to build or acquire gates that would be used as common facilities, and airfare levels (as compiled by the Department of Transportation) compared to other large airports.
(3) Special rule for fiscal year 2002.— 
This subsection does not apply to any passenger facility fee approved, or grant made, in fiscal year 2002 if the fee or grant is to be used to improve security at a covered airport.
(4) Covered airport defined.— 
In this subsection, the term covered airport means a commercial service airport
(A) that has more than .25 percent of the total number of passenger boardings each year at all such airports; and
(B) at which one or two air carriers control more than 50 percent of the passenger boardings.
(g) Consultation With Secretary of Homeland Security.— 
The Secretary shall consult with the Secretary of Homeland Security before approving an application under this subchapter for an airport development project grant for activities described in section 47102 (3)(B)(ii) only as they relate to security equipment or section 47102 (3)(B)(x) only as they relate to installation of bulk explosive detection system.

49 USC 47107 - Project grant application approval conditioned on assurances about airport operations

(a) General Written Assurances.— 
The Secretary of Transportation may approve a project grant application under this subchapter for an airport development project only if the Secretary receives written assurances, satisfactory to the Secretary, that
(1) the airport will be available for public use on reasonable conditions and without unjust discrimination;
(2) air carriers making similar use of the airport will be subject to substantially comparable charges
(A) for facilities directly and substantially related to providing air transportation; and
(B) regulations and conditions, except for differences based on reasonable classifications, such as between
(i) tenants and nontenants; and
(ii) signatory and nonsignatory carriers;
(3) the airport operator will not withhold unreasonably the classification or status of tenant or signatory from an air carrier that assumes obligations substantially similar to those already imposed on air carriers of that classification or status;
(4) a person providing, or intending to provide, aeronautical services to the public will not be given an exclusive right to use the airport, with a right given to only one fixed-base operator to provide services at an airport deemed not to be an exclusive right if
(A) the right would be unreasonably costly, burdensome, or impractical for more than one fixed-base operator to provide the services; and
(B) allowing more than one fixed-base operator to provide the services would require reducing the space leased under an existing agreement between the one fixed-base operator and the airport owner or operator;
(5) fixed-base operators similarly using the airport will be subject to the same charges;
(6) an air carrier using the airport may service itself or use any fixed-base operator allowed by the airport operator to service any carrier at the airport;
(7) the airport and facilities on or connected with the airport will be operated and maintained suitably, with consideration given to climatic and flood conditions;
(8) a proposal to close the airport temporarily for a nonaeronautical purpose must first be approved by the Secretary;
(9) appropriate action will be taken to ensure that terminal airspace required to protect instrument and visual operations to the airport (including operations at established minimum flight altitudes) will be cleared and protected by mitigating existing, and preventing future, airport hazards;
(10) appropriate action, including the adoption of zoning laws, has been or will be taken to the extent reasonable to restrict the use of land next to or near the airport to uses that are compatible with normal airport operations;
(11) each of the airports facilities developed with financial assistance from the United States Government and each of the airports facilities usable for the landing and taking off of aircraft always will be available without charge for use by Government aircraft in common with other aircraft, except that if the use is substantial, the Government may be charged a reasonable share, proportionate to the use, of the cost of operating and maintaining the facility used;
(12) the airport owner or operator will provide, without charge to the Government, property interests of the sponsor in land or water areas or buildings that the Secretary decides are desirable for, and that will be used for, constructing at Government expense, facilities for carrying out activities related to air traffic control or navigation;
(13) the airport owner or operator will maintain a schedule of charges for use of facilities and services at the airport
(A) that will make the airport as self-sustaining as possible under the circumstances existing at the airport, including volume of traffic and economy of collection; and
(B) without including in the rate base used for the charges the Governments share of costs for any project for which a grant is made under this subchapter or was made under the Federal Airport Act or the Airport and Airway Development Act of 1970;
(14) the project accounts and records will be kept using a standard system of accounting that the Secretary, after consulting with appropriate public agencies, prescribes;
(15) the airport owner or operator will submit any annual or special airport financial and operations reports to the Secretary that the Secretary reasonably requests and make such reports available to the public;
(16) the airport owner or operator will maintain a current layout plan of the airport that meets the following requirements:
(A) the plan will be in a form the Secretary prescribes;
(B) the Secretary will approve the plan and any revision or modification before the plan, revision, or modification takes effect;
(C) the owner or operator will not make or allow any alteration in the airport or any of its facilities if the alteration does not comply with the plan the Secretary approves, and the Secretary is of the opinion that the alteration may affect adversely the safety, utility, or efficiency of the airport; and
(D) when an alteration in the airport or its facility is made that does not conform to the approved plan and that the Secretary decides adversely affects the safety, utility, or efficiency of any property on or off the airport that is owned, leased, or financed by the Government, the owner or operator, if requested by the Secretary, will
(i) eliminate the adverse effect in a way the Secretary approves; or
(ii) bear all cost of relocating the property or its replacement to a site acceptable to the Secretary and of restoring the property or its replacement to the level of safety, utility, efficiency, and cost of operation that existed before the alteration was made;
(17) each contract and subcontract for program management, construction management, planning studies, feasibility studies, architectural services, preliminary engineering, design, engineering, surveying, mapping, and related services will be awarded in the same way that a contract for architectural and engineering services is negotiated under chapter 11 of title 40 or an equivalent qualifications-based requirement prescribed for or by the sponsor;
(18) the airport and each airport record will be available for inspection by the Secretary on reasonable request, and a report of the airport budget will be available to the public at reasonable times and places;
(19) the airport owner or operator will submit to the Secretary and make available to the public an annual report listing in detail
(A) all amounts paid by the airport to any other unit of government and the purposes for which each such payment was made; and
(B) all services and property provided to other units of government and the amount of compensation received for provision of each such service and property;
(20) the airport owner or operator will permit, to the maximum extent practicable, intercity buses or other modes of transportation to have access to the airport, but the sponsor does not have any obligation under this paragraph, or because of it, to fund special facilities for intercity bus service or for other modes of transportation; and
(21) if the airport owner or operator and a person who owns an aircraft agree that a hangar is to be constructed at the airport for the aircraft at the aircraft owners expense, the airport owner or operator will grant to the aircraft owner for the hangar a long-term lease that is subject to such terms and conditions on the hangar as the airport owner or operator may impose.
(b) Written Assurances on Use of Revenue.— 

(1) The Secretary of Transportation may approve a project grant application under this subchapter for an airport development project only if the Secretary receives written assurances, satisfactory to the Secretary, that local taxes on aviation fuel (except taxes in effect on December 30, 1987) and the revenues generated by a public airport will be expended for the capital or operating costs of
(A) the airport;
(B) the local airport system; or
(C) other local facilities owned or operated by the airport owner or operator and directly and substantially related to the air transportation of passengers or property.
(2) Paragraph (1) of this subsection does not apply if a provision enacted not later than September 2, 1982, in a law controlling financing by the airport owner or operator, or a covenant or assurance in a debt obligation issued not later than September 2, 1982, by the owner or operator, provides that the revenues, including local taxes on aviation fuel at public airports, from any of the facilities of the owner or operator, including the airport, be used to support not only the airport but also the general debt obligations or other facilities of the owner or operator.
(3) This subsection does not prevent the use of a State tax on aviation fuel to support a State aviation program or the use of airport revenue on or off the airport for a noise mitigation purpose.
(c) Written Assurances on Acquiring Land.— 

(1) In this subsection, land is needed for an airport purpose (except a noise compatibility purpose) if
(A) 
(i) the land may be needed for an aeronautical purpose (including runway protection zone) or serves as noise buffer land; and
(ii) revenue from interim uses of the land contributes to the financial self-sufficiency of the airport; and
(B) for land purchased with a grant the owner or operator received not later than December 30, 1987, the Secretary of Transportation or the department, agency, or instrumentality of the Government that made the grant was notified by the owner or operator of the use of the land and did not object to the use and the land is still being used for that purpose.
(2) The Secretary of Transportation may approve an application under this subchapter for an airport development project grant only if the Secretary receives written assurances, satisfactory to the Secretary, that if an airport owner or operator has received or will receive a grant for acquiring land and
(A) if the land was or will be acquired for a noise compatibility purpose
(i) the owner or operator will dispose of the land at fair market value at the earliest practicable time after the land no longer is needed for a noise compatibility purpose;
(ii) the disposition will be subject to retaining or reserving an interest in the land necessary to ensure that the land will be used in a way that is compatible with noise levels associated with operating the airport; and
(iii) the part of the proceeds from disposing of the land that is proportional to the Governments share of the cost of acquiring the land will be paid to the Secretary for deposit in the Airport and Airway Trust Fund established under section 9502 of the Internal Revenue Code of 1986 (26 U.S.C. 9502) or, as the Secretary prescribes, reinvested in an approved noise compatibility project, including the purchase of nonresidential buildings or property in the vicinity of residential buildings or property previously purchased by the airport as part of a noise compatibility program; or
(B) if the land was or will be acquired for an airport purpose (except a noise compatibility purpose)
(i) the owner or operator, when the land no longer is needed for an airport purpose, will dispose of the land at fair market value or make available to the Secretary an amount equal to the Governments proportional share of the fair market value;
(ii) the disposition will be subject to retaining or reserving an interest in the land necessary to ensure that the land will be used in a way that is compatible with noise levels associated with operating the airport; and
(iii) the part of the proceeds from disposing of the land that is proportional to the Governments share of the cost of acquiring the land will be reinvested, on application to the Secretary, in another eligible airport development project the Secretary approves under this subchapter or paid to the Secretary for deposit in the Fund if another eligible project does not exist.
(3) Proceeds referred to in paragraph (2)(A)(iii) and (B)(iii) of this subsection and deposited in the Airport and Airway Trust Fund are available as provided in subsection (f) of this section.
(d) Assurances of Continuation as Public-Use Airport.— 
The Secretary of Transportation may approve an application under this subchapter for an airport development project grant for a privately owned public-use airport only if the Secretary receives appropriate assurances that the airport will continue to function as a public-use airport during the economic life (that must be at least 10 years) of any facility at the airport that was developed with Government financial assistance under this subchapter.
(e) Written Assurances of Opportunities for Small Business Concerns.— 

(1) The Secretary of Transportation may approve a project grant application under this subchapter for an airport development project only if the Secretary receives written assurances, satisfactory to the Secretary, that the airport owner or operator will take necessary action to ensure, to the maximum extent practicable, that at least 10 percent of all businesses at the airport selling consumer products or providing consumer services to the public are small business concerns (as defined by regulations of the Secretary) owned and controlled by a socially and economically disadvantaged individual (as defined in section 47113 (a) of this title) or qualified HUBZone small business concerns (as defined in section 3(p) of the Small Business Act).
(2) An airport owner or operator may meet the percentage goal of paragraph (1) of this subsection by including any business operated through a management contract or subcontract. The dollar amount of a management contract or subcontract with a disadvantaged business enterprise shall be added to the total participation by disadvantaged business enterprises in airport concessions and to the base from which the airports percentage goal is calculated. The dollar amount of a management contract or subcontract with a non-disadvantaged business enterprise and the gross revenue of business activities to which the management contract or subcontract pertains may not be added to this base.
(3) Except as provided in paragraph (4) of this subsection, an airport owner or operator may meet the percentage goal of paragraph (1) of this subsection by including the purchase from disadvantaged business enterprises of goods and services used in businesses conducted at the airport, but the owner or operator and the businesses conducted at the airport shall make good faith efforts to explore all available options to achieve, to the maximum extent practicable, compliance with the goal through direct ownership arrangements, including joint ventures and franchises.
(4) 
(A) In complying with paragraph (1) of this subsection, an airport owner or operator shall include the revenues of car rental firms at the airport in the base from which the percentage goal in paragraph (1) is calculated.
(B) An airport owner or operator may require a car rental firm to meet a requirement under paragraph (1) of this subsection by purchasing or leasing goods or services from a disadvantaged business enterprise. If an owner or operator requires such a purchase or lease, a car rental firm shall be permitted to meet the requirement by including purchases or leases of vehicles from any vendor that qualifies as a small business concern owned and controlled by a socially and economically disadvantaged individual or as a qualified HUBZone small business concern (as defined in section 3(p) of the Small Business Act).
(C) This subsection does not require a car rental firm to change its corporate structure to provide for direct ownership arrangements to meet the requirements of this subsection.
(5) This subsection does not preempt
(A) a State or local law, regulation, or policy enacted by the governing body of an airport owner or operator; or
(B) the authority of a State or local government or airport owner or operator to adopt or enforce a law, regulation, or policy related to disadvantaged business enterprises.
(6) An airport owner or operator may provide opportunities for a small business concern owned and controlled by a socially and economically disadvantaged individual or a qualified HUBZone small business concern (as defined in section 3(p) of the Small Business Act) to participate through direct contractual agreement with that concern.
(7) An air carrier that provides passenger or property-carrying services or another business that conducts aeronautical activities at an airport may not be included in the percentage goal of paragraph (1) of this subsection for participation of small business concerns at the airport.
(8) Not later than April 29, 1993, the Secretary of Transportation shall prescribe regulations to carry out this subsection.
(f) Availability of Amounts.— 
An amount deposited in the Airport and Airway Trust Fund under
(1) subsection (c)(2)(A)(iii) of this section is available to the Secretary of Transportation to make a grant for airport development or airport planning under section 47104 of this title;
(2) subsection (c)(2)(B)(iii) of this section is available to the Secretary
(A) to make a grant for a purpose described in section 47115 (b) of this title; and
(B) for use under section 47114 (d)(2) of this title at another airport in the State in which the land was disposed of under subsection (c)(2)(B)(ii) of this section; and
(3) subsection (c)(2)(B)(iii) of this section is in addition to an amount made available to the Secretary under section 48103 of this title and not subject to apportionment under section 47114 of this title.
(g) Ensuring Compliance.— 

(1) To ensure compliance with this section, the Secretary of Transportation
(A) shall prescribe requirements for sponsors that the Secretary considers necessary; and
(B) may make a contract with a public agency.
(2) The Secretary of Transportation may approve an application for a project grant only if the Secretary is satisfied that the requirements prescribed under paragraph (1)(A) of this subsection have been or will be met.
(h) Modifying Assurances and Requiring Compliance With Additional Assurances.— 

(1) In general.— 
Subject to paragraph (2), before modifying an assurance required of a person receiving a grant under this subchapter and in effect after December 29, 1987, or to require compliance with an additional assurance from the person, the Secretary of Transportation must
(A) publish notice of the proposed modification in the Federal Register; and
(B) provide an opportunity for comment on the proposal.
(2) Public notice before waiver of aeronautical land-use assurance.— 
Before modifying an assurance under subsection (c)(2)(B) that requires any property to be used for an aeronautical purpose, the Secretary must provide notice to the public not less than 30 days before making such modification.
(i) Relief From Obligation To Provide Free Space.— 
When a sponsor provides a property interest in a land or water area or a building that the Secretary of Transportation uses to construct a facility at Government expense, the Secretary may relieve the sponsor from an obligation in a contract made under this chapter, the Airport and Airway Development Act of 1970, or the Federal Airport Act to provide free space to the Government in an airport building, to the extent the Secretary finds that the free space no longer is needed to carry out activities related to air traffic control or navigation.
(j) Use of Revenue in Hawaii.— 

(1) In this subsection
(A) duty-free merchandise and duty-free sales enterprise have the same meanings given those terms in section 555(b)(8) of the Tariff Act of 1930 (19 U.S.C. 1555 (b)(8)).
(B) highway and Federal-aid system have the same meanings given those terms in section 101 (a) of title 23.
(2) Notwithstanding subsection (b)(1) of this section, Hawaii may use, for a project for construction or reconstruction of a highway on a Federal-aid system that is not more than 10 miles by road from an airport and that will facilitate access to the airport, revenue from the sales at off-airport locations in Hawaii of duty-free merchandise under a contract between Hawaii and a duty-free sales enterprise. However, the revenue resulting during a Hawaiian fiscal year may be used only if the amount of the revenue, plus amounts Hawaii receives in the fiscal year from all other sources for costs Hawaii incurs for operating all airports it operates and for debt service related to capital projects for the airports (including interest and amortization of principal costs), is more than 150 percent of the projected costs for the fiscal year.
(3) 
(A) Revenue from sales referred to in paragraph (2) of this subsection in a Hawaiian fiscal year that Hawaii may use may not be more than the amount that is greater than 150 percent as determined under paragraph (2).
(B) The maximum amount of revenue Hawaii may use under paragraph (2) of this subsection is $250,000,000.
(4) If a fee imposed or collected for rent, landing, or service from an aircraft operator by an airport operated by Hawaii is increased during the period from May 4, 1990, through December 31, 1994, by more than the percentage change in the Consumer Price Index of All Urban Consumers for Honolulu, Hawaii, that the Secretary of Labor publishes during that period and if revenue derived from the fee increases because the fee increased, the amount under paragraph (3)(B) of this subsection shall be reduced by the amount of the projected revenue increase in the period less the part of the increase attributable to changes in the Index in the period.
(5) Hawaii shall determine costs, revenue, and projected revenue increases referred to in this subsection and shall submit the determinations to the Secretary of Transportation. A determination is approved unless the Secretary disapproves it not later than 30 days after it is submitted.
(6) Hawaii is not eligible for a grant under section 47115 of this title in a fiscal year in which Hawaii uses under paragraph (2) of this subsection revenue from sales referred to in paragraph (2). Hawaii shall repay amounts it receives in a fiscal year under a grant it is not eligible to receive because of this paragraph to the Secretary of Transportation for deposit in the discretionary fund established under section 47115.
(7) 
(A) This subsection applies only to revenue from sales referred to in paragraph (2) of this subsection from May 5, 1990, through December 30, 1994, and to amounts in the Airport Revenue Fund of Hawaii that are attributable to revenue before May 4, 1990, on sales referred to in paragraph (2).
(B) Revenue from sales referred to in paragraph (2) of this subsection from May 5, 1990, through December 30, 1994, may be used under paragraph (2) in any Hawaiian fiscal year, including a Hawaiian fiscal year beginning after December 31, 1994.
(k) Annual Summaries of Financial Reports.— 
The Secretary shall provide to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives an annual summary of the reports submitted to the Secretary under subsection (a)(19) of this section and under section 111(b) of the Federal Aviation Administration Authorization Act of 1994.
(l) Policies and Procedures To Ensure Enforcement Against Illegal Diversion of Airport Revenue.— 

(1) In general.— 
Not later than 90 days after August 23, 1994, the Secretary of Transportation shall establish policies and procedures that will assure the prompt and effective enforcement of subsections (a)(13) and (b) of this section and grant assurances made under such subsections. Such policies and procedures shall recognize the exemption provision in subsection (b)(2) of this section and shall respond to the information contained in the reports of the Inspector General of the Department of Transportation on airport revenue diversion and such other relevant information as the Secretary may by law consider.
(2) Revenue diversion.— 
Policies and procedures to be established pursuant to paragraph (1) of this subsection shall prohibit, at a minimum, the diversion of airport revenues (except as authorized under subsection (b) of this section) through
(A) direct payments or indirect payments, other than payments reflecting the value of services and facilities provided to the airport;
(B) use of airport revenues for general economic development, marketing, and promotional activities unrelated to airports or airport systems;
(C) payments in lieu of taxes or other assessments that exceed the value of services provided; or
(D) payments to compensate nonsponsoring governmental bodies for lost tax revenues exceeding stated tax rates.
(3) Efforts to be self-sustaining.— 
With respect to subsection (a)(13) of this section, policies and procedures to be established pursuant to paragraph (1) of this subsection shall take into account, at a minimum, whether owners and operators of airports, when entering into new or revised agreements or otherwise establishing rates, charges, and fees, have undertaken reasonable efforts to make their particular airports as self-sustaining as possible under the circumstances existing at such airports.
(4) Administrative safeguards.— 
Policies and procedures to be established pursuant to paragraph (1) shall mandate internal controls, auditing requirements, and increased levels of Department of Transportation personnel sufficient to respond fully and promptly to complaints received regarding possible violations of subsections (a)(13) and (b) of this section and grant assurances made under such subsections and to alert the Secretary to such possible violations.
(5) Statute of limitations.— 
In addition to the statute of limitations specified in subsection (n)(7), with respect to project grants made under this chapter
(A) any request by a sponsor or any other governmental entity to any airport for additional payments for services conducted off of the airport or for reimbursement for capital contributions or operating expenses shall be filed not later than 6 years after the date on which the expense is incurred; and
(B) any amount of airport funds that are used to make a payment or reimbursement as described in subparagraph (A) after the date specified in that subparagraph shall be considered to be an illegal diversion of airport revenues that is subject to subsection (n).
(m) Audit Certification.— 

(1) In general.— 
The Secretary of Transportation, acting through the Administrator of the Federal Aviation Administration, shall include a provision in the compliance supplement provisions to require a recipient of a project grant (or any other recipient of Federal financial assistance that is provided for an airport) to include as part of an annual audit conducted under sections 7501 through 7505 of title 31, a review concerning the funding activities with respect to an airport that is the subject of the project grant (or other Federal financial assistance) and the sponsors, owners, or operators (or other recipients) involved.
(2) Content of review.— 
A review conducted under paragraph (1) shall provide reasonable assurances that funds paid or transferred to sponsors are paid or transferred in a manner consistent with the applicable requirements of this chapter and any other applicable provision of law (including regulations promulgated by the Secretary or the Administrator).
(n) Recovery of Illegally Diverted Funds.— 

(1) In general.— 
Not later than 180 days after the issuance of an audit or any other report that identifies an illegal diversion of airport revenues (as determined under subsections (b) and (l) and section 47133), the Secretary, acting through the Administrator, shall
(A) review the audit or report;
(B) perform appropriate factfinding; and
(C) conduct a hearing and render a final determination concerning whether the illegal diversion of airport revenues asserted in the audit or report occurred.
(2) Notification.— 
Upon making such a finding, the Secretary, acting through the Administrator, shall provide written notification to the sponsor and the airport of
(A) the finding; and
(B) the obligations of the sponsor to reimburse the airport involved under this paragraph.
(3) Administrative action.— 
The Secretary may withhold any amount from funds that would otherwise be made available to the sponsor, including funds that would otherwise be made available to a State, municipality, or political subdivision thereof (including any multimodal transportation agency or transit authority of which the sponsor is a member entity) as part of an apportionment or grant made available pursuant to this title, if the sponsor
(A) receives notification that the sponsor is required to reimburse an airport; and
(B) has had an opportunity to reimburse the airport, but has failed to do so.
(4) Civil action.— 
If a sponsor fails to pay an amount specified under paragraph (3) during the 180-day period beginning on the date of notification and the Secretary is unable to withhold a sufficient amount under paragraph (3), the Secretary, acting through the Administrator, may initiate a civil action under which the sponsor shall be liable for civil penalty in an amount equal to the illegal diversion in question plus interest (as determined under subsection (o)).
(5) Disposition of penalties.— 

(A) Amounts withheld.— 
The Secretary or the Administrator shall transfer any amounts withheld under paragraph (3) to the Airport and Airway Trust Fund.
(B) Civil penalties.— 
With respect to any amount collected by a court in a civil action under paragraph (4), the court shall cause to be transferred to the Airport and Airway Trust Fund any amount collected as a civil penalty under paragraph (4).
(6) Reimbursement.— 
The Secretary, acting through the Administrator, shall, as soon as practicable after any amount is collected from a sponsor under paragraph (4), cause to be transferred from the Airport and Airway Trust Fund to an airport affected by a diversion that is the subject of a civil action under paragraph (4), reimbursement in an amount equal to the amount that has been collected from the sponsor under paragraph (4) (including any amount of interest calculated under subsection (o)).
(7) Statute of limitations.— 
No person may bring an action for the recovery of funds illegally diverted in violation of this section (as determined under subsections (b) and (l)) or section 47133 after the date that is 6 years after the date on which the diversion occurred.
(o) Interest.— 

(1) In general.— 
Except as provided in paragraph (2), the Secretary, acting through the Administrator, shall charge a minimum annual rate of interest on the amount of any illegal diversion of revenues referred to in subsection (n) in an amount equal to the average investment interest rate for tax and loan accounts of the Department of the Treasury (as determined by the Secretary of the Treasury) for the applicable calendar year, rounded to the nearest whole percentage point.
(2) Adjustment of interest rates.— 
If, with respect to a calendar quarter, the average investment interest rate for tax and loan accounts of the Department of the Treasury exceeds the average investment interest rate for the immediately preceding calendar quarter, rounded to the nearest whole percentage point, the Secretary of the Treasury may adjust the interest rate charged under this subsection in a manner that reflects that change.
(3) Accrual.— 
Interest assessed under subsection (n) shall accrue from the date of the actual illegal diversion of revenues referred to in subsection (n).
(4) Determination of applicable rate.— 
The applicable rate of interest charged under paragraph (1) shall
(A) be the rate in effect on the date on which interest begins to accrue under paragraph (3); and
(B) remain at a rate fixed under subparagraph (A) during the duration of the indebtedness.
(p) Payment by Airport to Sponsor.— 
If, in the course of an audit or other review conducted under this section, the Secretary or the Administrator determines that an airport owes a sponsor funds as a result of activities conducted by the sponsor or expenditures by the sponsor for the benefit of the airport, interest on that amount shall be determined in the same manner as provided in paragraphs (1) through (4) of subsection (o), except that the amount of any interest assessed under this subsection shall be determined from the date on which the Secretary or the Administrator makes that determination.
(q) Notwithstanding any written assurances prescribed in subsections (a) through (p), a general aviation airport with more than 300,000 annual operations may be exempt from having to accept scheduled passenger air carrier service, provided that the following conditions are met:
(1) No scheduled passenger air carrier has provided service at the airport within 5 years prior to January 1, 2002.
(2) The airport is located within or underneath the Class B airspace of an airport that maintains an airport operating certificate pursuant to section 44706 of title 49.
(3) The certificated airport operating under section 44706 of title 49 does not contribute to significant passenger delays as defined by DOT/FAA in the Airport Capacity Benchmark Report 2001.
(r) An airport that meets the conditions of subsections (q)(1) through (3) is not subject to section 47524 of title 49 with respect to a prohibition on all scheduled passenger service.
(s) Competition Disclosure Requirement.— 

(1) In general.— 
The Secretary of Transportation may approve an application under this subchapter for an airport development project grant for a large hub airport or a medium hub airport only if the Secretary receives assurances that the airport sponsor will provide the information required by paragraph (2) at such time and in such form as the Secretary may require.
(2) Competitive access.— 
On February 1 and August 1 of each year, an airport that during the previous 6-month period has been unable to accommodate one or more requests by an air carrier for access to gates or other facilities at that airport in order to provide service to the airport or to expand service at the airport shall transmit a report to the Secretary that
(A) describes the requests;
(B) provides an explanation as to why the requests could not be accommodated; and
(C) provides a time frame within which, if any, the airport will be able to accommodate the requests.
(3) Sunset provision.— 
This subsection shall cease to be effective beginning October 1, 2008.

49 USC 47108 - Project grant agreements

(a) Offer and Acceptance.— 
On approving a project grant application under this subchapter, the Secretary of Transportation shall offer the sponsor a grant to pay the United States Governments share of the project costs allowable under section 47110 of this title. The Secretary may impose terms on the offer that the Secretary considers necessary to carry out this subchapter and 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) or 47114 (d)(3)(A) of this title for the fiscal years necessary to pay the Governments 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 Government 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 Airway 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.
(e) Change in Airport Status.— 

(1) Changes to nonprimary airport status.— 
If the status of a primary airport changes to a nonprimary airport at a time when a development project under a multiyear agreement under subsection (a) is not yet completed, the project shall remain eligible for funding from discretionary funds under section 47115 at the funding level and under the terms provided by the agreement, subject to the availability of funds.
(2) Changes to noncommercial service airport status.— 
If the status of a commercial service airport changes to a noncommercial service airport at a time when a terminal development project under a phased-funding arrangement is not yet completed, the project shall remain eligible for funding from discretionary funds under section 47115 at the funding level and under the terms provided by the arrangement subject to the availability of funds.
(3) Changes to nonhub primary status.— 
If the status of a nonhub primary airport changes to a small hub primary airport at a time when the airport has received discretionary funds under this chapter for a terminal development project in accordance with section 47110 (d)(2), and the project is not yet completed, the project shall remain eligible for funding from the discretionary fund and the small airport fund to pay costs allowable under section 47110 (d). Such project shall remain eligible for such funds for three fiscal years after the start of construction of the project, or if the Secretary determines that a further extension of eligibility is justified, until the project is completed.

49 USC 47109 - United States Governments share of project costs

(a) General.— 
Except as provided in subsection (b) or subsection (c) of this section, the United States Governments 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;
(2) not more than 90 percent for a project funded by a grant issued to and administered by a State under section 47128, relating to the State block grant program;
(3) 90 percent for a project at any other airport;
(4) 70 percent for a project funded by the Administrator from the discretionary fund under section 47115 at an airport receiving an exemption under section 47134; and
(5) for fiscal year 2002, 100 percent for a project described in section 47102 (3)(J), 47102 (3)(K), or 47102 (3)(L).[1]
(b) Increased Government Share.— 
If, under subsection (a) of this section, the Governments 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 Governments 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 unappropriated 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 Governments share to the percentage that applied on June 30, 1975, under section 17(b) of the Act.
(c) Grandfather Rule.— 

(1) In general.— 
In the case of any project approved after September 30, 2003, at a small hub airport or nonhub airport that is located 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, the Governments share of allowable costs of the project shall be increased by the same ratio as the basic share of allowable costs of a project divided into the increased (Public Lands States) share of allowable costs of a project as shown on documents of the Federal Aviation Administration dated August 3, 1979, at airports for which the general share was 80 percent on August 3, 1979. This subsection shall apply only if
(A) the State contained unappropriated and unreserved public lands and nontaxable Indian lands of more than 5 percent of the total area of all lands in the State on August 3, 1979; and
(B) the application under subsection (b), does not increase the Governments share of allowable costs of the project.
(2) Limitation.— 
The Governments share of allowable project costs determined under this subsection shall not exceed the lesser of 93.75 percent or the highest percentage Government share applicable to any project in any State under subsection (b).
(d) Special Rule for Privately Owned Reliever Airports.— 
If a privately owned reliever airport contributes any lands, easements, or rights-of-way to carry out a project under this subchapter, the current fair market value of such lands, easements, or rights-of-way shall be credited toward the non-Federal share of allowable project costs.
[1] See References in Text note below.

49 USC 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 and any cost of moving a Federal facility impeding the project if the rebuilt facility is of an equivalent size and type;
(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[1] program (including project formulation costs) and is consistent with all applicable statutory and administrative requirements;
(C) if the Governments share is paid only with amounts apportioned under paragraphs (1) and (2) of section 47114 (c) or section 47114 (d)(3)(A) 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; or
(D) if the cost is incurred after September 11, 2001, for a project described in section 47102 (3)(J), 47102 (3)(K), or 47102 (3)(L)2 and shall not depend upon the date of execution of a grant agreement made under this subchapter;
(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;
(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); and
(6) if the cost is for a project not described in section 47102 (3) for acquiring for use at a commercial service airport vehicles and ground support equipment owned by an airport that include low-emission technology, but only to the extent of the incremental cost of equipping such vehicles or equipment with low-emission technology, as determined by the Secretary.
(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) except as provided in section 47108 (e)(3), 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 Secretarys 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 Governments 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 Governments 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 sponsors 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) that meets the criteria of section 47115 (d) and, if for a project at a commercial service airport having at least 0.25 percent of the boardings each year at all such airports, the Secretary decides will enhance system-wide airport capacity significantly.
(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) Letters of intent.— 
The Secretary may not require an eligible agency to impose a passenger facility fee under section 40117 in order to obtain a letter of intent under this section.
(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) or section 47114 (d)(3)(A) are not sufficient to cover the Governments share of the cost of the project.
(h) Nonprimary Airports.— 
The Secretary may decide that the costs of revenue producing aeronautical support facilities, including fuel farms and hangars, are allowable for an airport development project at a nonprimary airport if the Governments share of such costs is paid only with funds apportioned to the airport sponsor under section 47114 (d)(3)(A) and if the Secretary determines that the sponsor has made adequate provision for financing airside needs of the airport.
[1] So in original. Probably should be “compatibility”.
[2] See References in Text note below.

49 USC 47111 - Payments under project grant agreements

(a) General Authority.— 
After making a project grant agreement 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 Governments share of the projects 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 Governments 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.
(c) Payment Deposits.— 
A payment under a project grant agreement under this subchapter may be made only to an official or depository designated by the sponsor and authorized by law to receive public money.
(d) Withholding Payments.— 

(1) The Secretary may withhold a payment under a grant agreement under this subchapter for more than 180 days after the payment is due only if the Secretary
(A) notifies the sponsor and provides an opportunity for a hearing; and
(B) finds that the sponsor has violated the agreement.
(2) The 180-day period may be extended by
(A) agreement of the Secretary and the sponsor; or
(B) the hearing officer if the officer decides an extension is necessary because the sponsor did not follow the schedule the officer established.
(3) A person adversely affected by an order of the Secretary withholding a payment may apply for review of the order by filing a petition in the United States Court of Appeals for the District of Columbia Circuit or in the court of appeals of the United States for the circuit in which the project is located. The petition must be filed not later than 60 days after the order is served on the petitioner.
(e) Action on Grant Assurances Concerning Airport Revenues.— 
If, after notice and opportunity for a hearing, the Secretary finds a violation of section 47107 (b) of this title, as further defined by the Secretary under section 47107 (l) of this title, or a violation of an assurance made under section 47107 (b) of this title, and the Secretary has provided an opportunity for the airport sponsor to take corrective action to cure such violation, and such corrective action has not been taken within the period of time set by the Secretary, the Secretary shall withhold approval of any new grant application for funds under this chapter, or any proposed modification to an existing grant that would increase the amount of funds made available under this chapter to the airport sponsor, and withhold approval of any new application to impose a fee under section 40117 of this title. Such applications may thereafter be approved only upon a finding by the Secretary that such corrective action as the Secretary requires has been taken to address the violation and that the violation no longer exists.
(f) Judicial Enforcement.— 
For any violation of this chapter or any grant assurance made under this chapter, the Secretary may apply to the district court of the United States for any district in which the violation occurred for enforcement. Such court shall have jurisdiction to enforce obedience thereto by a writ of injunction or other process, mandatory or otherwise, restraining any person from further violation.

49 USC 47112 - Carrying out airport development projects

(a) Construction Work.— 
The Secretary of Transportation may inspect and approve construction work for an airport development project carried out under a grant agreement under this subchapter. The construction work must be carried out in compliance with regulations the Secretary prescribes. The regulations shall require the sponsor to make necessary cost and progress reports on the project. The regulations may amend or modify a contract related to the project only if the contract was made with actual notice of the regulations.
(b) Prevailing Wages.— 
A contract for more than $2,000 involving labor for an airport development project carried out under a grant agreement under this subchapter must require contractors to pay labor minimum wage rates as determined by the Secretary of Labor under sections 3141–3144, 3146, and 3147 of title 40. The minimum rates must be included in the bids for the work and in the invitation for those bids.
(c) Veterans’ Preference.— 

(1) In this subsection
(A) disabled veteran has the same meaning given that term in section 2108 of title 5.
(B) Vietnam-era veteran means an individual who served on active duty (as defined in section 101 of title 38) in the armed forces for more than 180 consecutive days, any part of which occurred after August 4, 1964, and before May 8, 1975, and who was separated from the armed forces under honorable conditions.
(2) A contract involving labor for carrying out an airport development project under a grant agreement under this subchapter must require that preference in the employment of labor (except in executive, administrative, and supervisory positions) be given to Vietnam-era veterans and disabled veterans when they are available and qualified for the employment.

49 USC 47113 - Minority and disadvantaged business participation

(a) Definitions.— 
In this section
(1) small business concern
(A) has the same meaning given that term in section 3 of the Small Business Act (15 U.S.C. 632); but
(B) does not include a concern, or group of concerns controlled by the same socially and economically disadvantaged individual, that has average annual gross receipts over the prior 3 fiscal years of more than $16,015,000, as adjusted by the Secretary of Transportation for inflation;
(2) socially and economically disadvantaged individual has the same meaning given that term in section 8(d) of the Act (15 U.S.C. 637 (d)) and relevant subcontracting regulations prescribed under section 8 (d), except that women are presumed to be socially and economically disadvantaged; and
(3) the term qualified HUBZone small business concern has the meaning given that term in section 3(p) of the Small Business Act (15 U.S.C. 632 (o)1).
(b) General Requirement.— 
Except to the extent the Secretary decides otherwise, at least 10 percent of amounts available in a fiscal year under section 48103 of this title shall be expended with small business concerns owned and controlled by socially and economically disadvantaged individuals or qualified HUBZone small business concerns.
(c) Uniform Criteria.— 
The Secretary shall establish minimum uniform criteria for State governments and airport sponsors to use in certifying whether a small business concern qualifies under this section. The criteria shall include on-site visits, personal interviews, licenses, analyses of stock ownership and bonding capacity, listings of equipment and work completed, resumes of principal owners, financial capacity, and type of work preferred.
(d) Surveys and Lists.— 
Each State or airport sponsor annually shall survey and compile a list of small business concerns referred to in subsection (b) of this section and the location of each concern in the State.
[1] So in original. Probably should be “632(p)”.

49 USC 47114 - Apportionments

(a) Definition.— 
In this section, amount subject to apportionment means the amount newly made available under section 48103 of this title for a fiscal year.
(b) Apportionment Date.— 
On the first day of each fiscal year, the Secretary of Transportation shall apportion the amount subject to apportionment for that fiscal year as provided in this section.
(c) Amounts Apportioned to Sponsors.— 

(1) Primary airports.— 

(A) Apportionment.— 
The Secretary shall apportion to the sponsor of each primary airport for each fiscal year an amount equal to
(i) $7.80 for each of the first 50,000 passenger boardings at the airport during the prior calendar year;
(ii) $5.20 for each of the next 50,000 passenger boardings at the airport during the prior calendar year;
(iii) $2.60 for each of the next 400,000 passenger boardings at the airport during the prior calendar year;
(iv) $.65 for each of the next 500,000 passenger boardings at the airport during the prior calendar year; and
(v) $.50 for each additional passenger boarding at the airport during the prior calendar year.
(B) Minimum and maximum apportionments.— 
Not less than $650,000 nor more than $22,000,000 may be apportioned under subparagraph (A) of this paragraph to an airport sponsor for a primary airport for each fiscal year.
(C) Special rule.— 
In any fiscal year in which the total amount made available under section 48103 is $3,200,000,000 or more
(i) the amount to be apportioned to a sponsor under subparagraph (A) shall be increased by doubling the amount that would otherwise be apportioned;
(ii) the minimum apportionment to a sponsor under subparagraph (B) shall be $1,000,000 rather than $650,000; and
(iii) the maximum apportionment to a sponsor under subparagraph (B) shall be $26,000,000 rather than $22,000,000.
(D) New airports.— 
Notwithstanding subparagraph (A), the Secretary shall apportion on the first day of the first fiscal year following the official opening of a new airport with scheduled passenger air transportation an amount equal to the minimum amount set forth in subparagraph (B) or (C), as appropriate, to the sponsor of such airport.
(E) Use of previous fiscal year’s apportionment.— 
Notwithstanding subparagraph (A), the Secretary may apportion to an airport sponsor in a fiscal year an amount equal to the amount apportioned to that sponsor in the previous fiscal year if the Secretary finds that
(i) passenger boardings at the airport fell below 10,000 in the calendar year used to calculate the apportionment;
(ii) the airport had at least 10,000 passenger boardings in the calendar year prior to the calendar year used to calculate apportionments to airport sponsors in a fiscal year; and
(iii) the cause of the shortfall in passenger boardings was a temporary but significant interruption in service by an air carrier to that airport due to an employment action, natural disaster, or other event unrelated to the demand for air transportation at the affected airport.
(F) Special rule for fiscal years 2004 and 2005.— 
Notwithstanding subparagraph (A) and the absence of scheduled passenger aircraft service at an airport, the Secretary may apportion in fiscal years 2004 and 2005 to the sponsor of the airport an amount equal to the amount apportioned to that sponsor in fiscal year 2002 or 2003, whichever amount is greater, if the Secretary finds that
(i) the passenger boardings at the airport were below 10,000 in calendar year 2002 or 2003;
(ii) the airport had at least 10,000 passenger boardings and scheduled passenger aircraft service in either calendar year 2000 or 2001; and
(iii) the reason that passenger boardings described in clause (i) were below 10,000 was the decrease in passengers following the terrorist attacks of September 11, 2001.
(G) Special rule for fiscal year 2006.— 
Notwithstanding subparagraph (A) and the absence of scheduled passenger aircraft service at an airport, the Secretary may apportion in fiscal year 2006 to the sponsor of the airport an amount equal to $500,000, if the Secretary finds that
(i) the passenger boardings at the airport were below 10,000 in calendar year 2004;
(ii) the airport had at least 10,000 passenger boardings and scheduled passenger aircraft service in either calendar year 2000 or 2001; and
(iii) the reason that passenger boardings described in clause (i) were below 10,000 was the decrease in passengers following the terrorist attacks of September 11, 2001.
(2) Cargo airports.— 

(A) Apportionment.— 
Subject to subparagraph (D), the Secretary shall apportion an amount equal to 3.5 percent of the amount subject to apportionment each fiscal year to the sponsors of airports served by aircraft providing air transportation of only cargo with a total annual landed weight of more than 100,000,000 pounds.
(B) Suballocation formula.— 
Any funds apportioned under subparagraph (A) to sponsors of airports described in subparagraph (A) shall be allocated among those airports in the proportion that the total annual landed weight of aircraft described in subparagraph (A) landing at each of those airports bears to the total annual landed weight of those aircraft landing at all those airports.
(C) Limitation.— 
In any fiscal year in which the total amount made available under section 48103 is less than $3,200,000,000, not more than 8 percent of the amount apportioned under subparagraph (A) may be apportioned for any one airport.
(D) Distribution to other airports.— 
Before apportioning amounts to the sponsors of airports under subparagraph (A) for a fiscal year, the Secretary may set-aside a portion of such amounts for distribution to the sponsors of other airports, selected by the Secretary, that the Secretary finds will be served primarily by aircraft providing air transportation of only cargo.
(E) Determination of landed weight.— 
Landed weight under this paragraph is the landed weight of aircraft landing at each airport described in subparagraph (A) during the prior calendar year.
(d) Amounts Apportioned for General Aviation Airports.— 

(1) Definitions.— 
In this subsection, the following definitions apply:
(A) Area.— 
The term area includes land and water.
(B) Population.— 
The term population means the population stated in the latest decennial census of the United States.
(2) Apportionment.— 
Except as provided in paragraph (3), the Secretary shall apportion to the States 18.5 percent of the amount subject to apportionment for each fiscal year as follows:
(A) 0.66 percent of the apportioned amount to Guam, American Samoa, the Northern Mariana Islands, and the Virgin Islands.
(B) Except as provided in paragraph (4), 49.67 percent of the apportioned amount for airports, excluding primary airports but including reliever and nonprimary commercial service airports, in States not named in subparagraph (A) in the proportion that the population of each of those States bears to the total population of all of those States.
(C) Except as provided in paragraph (4), 49.67 percent of the apportioned amount for airports, excluding primary airports but including reliever and nonprimary commercial service airports, in States not named in subparagraph (A) in the proportion that the area of each of those States bears to the total area of all of those States.
(3) Special rule.— 
In any fiscal year in which the total amount made available under section 48103 is $3,200,000,000 or more, rather than making an apportionment under paragraph (2), the Secretary shall apportion 20 percent of the amount subject to apportionment for each fiscal year as follows:
(A) To each airport, excluding primary airports but including reliever and nonprimary commercial service airports, in States the lesser of
(i) $150,000; or
(ii) 1/5 of the most recently published estimate of the 5-year costs for airport improvement for the airport, as listed in the national plan of integrated airport systems developed by the Federal Aviation Administration under section 47103.
(B) Any remaining amount to States as follows:
(i) 0.62 percent of the remaining amount to Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and the Virgin Islands.
(ii) Except as provided in paragraph (4), 49.69 percent of the remaining amount for airports, excluding primary airports but including reliever and nonprimary commercial service airports, in States not named in clause (i) in the proportion that the population of each of those States bears to the total population of all of those States.
(iii) Except as provided in paragraph (4), 49.69 percent of the remaining amount for airports, excluding primary airports but including reliever and nonprimary commercial service airports, in States not named in clause (i) in the proportion that the area of each of those States bears to the total area of all of those States.
(4) Airports in alaska, puerto rico, and hawaii.— 
An amount apportioned under paragraph (2) or (3) to Alaska, Puerto Rico, or Hawaii for airports in such State may be made available by the Secretary for any public airport in those respective jurisdictions.
(5) Use of state highway specifications.— 

(A) In general.— 
The Secretary may permit the use of State highway specifications for airfield pavement construction using funds made available under this subsection at nonprimary airports with runways of 5,000 feet or shorter serving aircraft that do not exceed 60,000 pounds gross weight if the Secretary determines that
(i) safety will not be negatively affected; and
(ii) the life of the pavement will not be shorter than it would be if constructed using Administration standards.
(B) Limitation.— 
An airport may not seek funds under this subchapter for runway rehabilitation or reconstruction of any such airfield pavement constructed using State highway specifications for a period of 10 years after construction is completed unless the Secretary determines that the rehabilitation or reconstruction is required for safety reasons.
(6) Integrated airport system planning.— 
Notwithstanding any other provision of this subsection, funds made available under this subsection may be used for integrated airport system planning that encompasses one or more primary airports.
(e) Supplemental Apportionment for Alaska.— 

(1) In general.— 
Notwithstanding subsections (c) and (d) of this section, the Secretary may apportion amounts for airports in Alaska in the way in which amounts were apportioned in the fiscal year ending September 30, 1980, under section 15(a) of the Act. However, in apportioning amounts for a fiscal year under this subsection, the Secretary shall apportion
(A) for each primary airport at least as much as would be apportioned for the airport under subsection (c)(1) of this section; and
(B) a total amount at least equal to the minimum amount required to be apportioned to airports in Alaska in the fiscal year ending September 30, 1980, under section 15(a)(3)(A) of the Act.
(2) Authority for discretionary grants.— 
This subsection does not prohibit the Secretary from making project grants for airports in Alaska from the discretionary fund under section 47115 of this title.
(3) Airports eligible for funds.— 
An amount apportioned under this subsection may be used for any public airport in Alaska.
(4) Special rule.— 
In any fiscal year in which the total amount made available under section 48103 is $3,200,000,000 or more, the amount that may be apportioned for airports in Alaska under paragraph (1) shall be increased by doubling the amount that would otherwise be apportioned.
(f) Reducing Apportionments.— 

(1) In general.— 
Subject to paragraph (3), an amount that would be apportioned under this section (except subsection (c)(2)) in a fiscal year to the sponsor of an airport having at least .25 percent of the total number of boardings each year in the United States and for which a fee is imposed in the fiscal year under section 40117 of this title shall be reduced by an amount equal to
(A) in the case of a fee of $3.00 or less, 50 percent of the projected revenues from the fee in the fiscal year but not by more than 50 percent of the amount that otherwise would be apportioned under this section; and
(B) in the case of a fee of more than $3.00, 75 percent of the projected revenues from the fee in the fiscal year but not by more than 75 percent of the amount that otherwise would be apportioned under this section.
(2) Effective date of reduction.— 
A reduction in an apportionment required by paragraph (1) shall not take effect until the first fiscal year following the year in which the collection of the fee imposed under section 40117 is begun.
(3) Special rule for transitioning airports.— 

(A) In general.— 
Beginning with the fiscal year following the first calendar year in which the sponsor of an airport has more than .25 percent of the total number of boardings in the United States, the sum of the amount that would be apportioned under this section after application of paragraph (1) in a fiscal year to such sponsor and the projected revenues to be derived from the fee in such fiscal year shall not be less than the sum of the apportionment to such airport for the preceding fiscal year and the revenues derived from such fee in the preceding fiscal year.
(B) Effective period.— 
Subparagraph (A) shall be in effect for fiscal year 2004.

49 USC 47115 - Discretionary fund

(a) Existence and Amounts in Fund.— 
The Secretary of Transportation has a discretionary fund. The fund consists of
(1) amounts subject to apportionment for a fiscal year that are not apportioned under section 47114 (c)(e) of this title; and
(2) 12.5 percent of amounts not apportioned under section 47114 of this title because of section 47114 (f).
(b) Availability of Amounts.— 
Subject to subsection (c) of this section and section 47117 (e) of this title, the fund is available for making grants for any purpose for which amounts are made available under section 48103 of this title that the Secretary considers most appropriate to carry out this subchapter.
(c) Minimum Percentage for Primary and Reliever Airports.— 
At least 75 percent of the amount in the fund and distributed by the Secretary in a fiscal year shall be used for making grants
(1) to preserve and enhance capacity, safety, and security at primary and reliever airports; and
(2) to carry out airport noise compatibility planning and programs at primary and reliever airports.
(d) Considerations.— 

(1) For capacity enhancement projects.— 
In selecting a project for a grant to preserve and improve capacity funded in whole or in part from the fund, the Secretary shall consider
(A) the effect that the project will have on overall national transportation system capacity;
(B) the benefit and cost of the project, including, in the case of a project at a reliever airport, the number of operations projected to be diverted from a primary airport to the reliever airport as a result of the project, as well as the cost savings projected to be realized by users of the local airport system;
(C) the financial commitment from non-United States Government sources to preserve or improve airport capacity;
(D) the airport improvement priorities of the States to the extent such priorities are not in conflict with subparagraphs (A) and (B);
(E) the projected growth in the number of passengers or aircraft that will be using the airport at which the project will be carried out; and
(F) the ability of the project to foster United States competitiveness in securing global air cargo activity at a United States airport.
(2) For all projects.— 
In selecting a project for a grant under this section, the Secretary shall consider among other factors whether
(A) funding has been provided for all other projects qualifying for funding during the fiscal year under this chapter that have attained a higher score under the numerical priority system employed by the Secretary in administering the fund; and
(B) the sponsor will be able to commence the work identified in the project application in the fiscal year in which the grant is made or within 6 months after the grant is made, whichever is later.
(e) Waiving Percentage Requirement.— 
If the Secretary decides the Secretary cannot comply with the percentage requirement of subsection (c) of this section in a fiscal year because there are insufficient qualified grant applications to meet that percentage, the amount the Secretary determines will not be distributed as required by subsection (c) is available for obligation during the fiscal year without regard to the requirement.
(f) Consideration of Diversion of Revenues in Awarding Discretionary Grants.— 

(1) General rule.— 
Subject to paragraph (2), in deciding whether or not to distribute funds to an airport from the discretionary funds established by subsection (a) of this section and section 47116 of this title, the Secretary shall consider as a factor militating against the distribution of such funds to the airport the fact that the airport is using revenues generated by the airport or by local taxes on aviation fuel for purposes other than capital or operating costs of the airport or the local airports system or other local facilities which are owned or operated by the owner or operator of the airport and directly and substantially related to the actual air transportation of passengers or property.
(2) Required finding.— 
Paragraph (1) shall apply only when the Secretary finds that the amount of revenues used by the airport for purposes other than capital or operating costs in the airports fiscal year preceding the date of the application for discretionary funds exceeds the amount of such revenues in the airports first fiscal year ending after August 23, 1994, adjusted by the Secretary for changes in the Consumer Price Index of All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor.
(g) Minimum Amount To Be Credited.— 

(1) General rule.— 
In a fiscal year, there shall be credited to the fund, out of amounts made available under section 48103 of this title, an amount that is at least equal to the sum of
(A) $148,000,000; plus
(B) the total amount required from the fund to carry out in the fiscal year letters of intent issued before January 1, 1996, under section 47110 (e) of this title or the Airport and Airway Improvement Act of 1982.

The amount credited is exclusive of amounts that have been apportioned in a prior fiscal year under section 47114 of this title and that remain available for obligation.

(2) Reduction of apportionments.— 
In a fiscal year in which the amount credited under subsection (a) is less than the minimum amount to be credited under paragraph (1), the total amount calculated under paragraph (3) shall be reduced by an amount that, when credited to the fund, together with the amount credited under subsection (a), equals such minimum amount.
(3) Amount of reduction.— 
For a fiscal year, the total amount available to make a reduction to carry out paragraph (2) is the total of the amounts determined under sections 47114 (c)(1)(A), 47114 (c)(2), 47114 (d), and 47117 (e) of this title. Each amount shall be reduced by an equal percentage to achieve the reduction.
(h) Priority for Letters of Intent.— 
In making grants in a fiscal year with funds made available under this section, the Secretary shall fulfill intentions to obligate under section 47110 (e).
(i) Considerations for Project Under Expanded Security Eligibility.— 
In order to assure that funding under this subchapter is provided to the greatest needs, the Secretary, in selecting a project described in section 47102 (3)(J)1 for a grant, shall consider the non-federal[2] resources available to sponsor, the use of such non-federal[2] resources, and the degree to which the sponsor is providing increased funding for the project.
(j) Marshall Islands, Micronesia, and Palau.— 
For fiscal years 2004 through 2007, the sponsors of airports located in the Republic of the Marshall Islands, Federated States of Micronesia, and Republic of Palau shall be eligible for grants under this section and section 47116.
[1] See References in Text note below.
[2] So in original. Probably should be “non-Federal”.

49 USC 47116 - Small airport fund

(a) Existence and Amounts in Fund.— 
The Secretary of Transportation has a small airport fund. The fund consists of 87.5 percent of amounts not apportioned under section 47114 of this title because of section 47114 (f).
(b) Distribution of Amounts.— 
The Secretary may distribute amounts in the fund in each fiscal year for any purpose for which amounts are made available under section 48103 of this title as follows:
(1) one-seventh for grants for projects at small hub airports; and
(2) the remaining amounts based on the following:
(A) one-third for grants to sponsors of public-use airports (except commercial service airports).
(B) two-thirds for grants to sponsors of each commercial service airport that each year has less than .05 percent of the total boardings in the United States in that year.
(c) Authority To Receive Grant Not Dependent on Participation in Block Grant Pilot Program.— 
An airport in a State participating in the State block grant pilot program under section 47128 of this title may receive a grant under this section to the same extent the airport may receive a grant if the State were not participating in the program.
(d) Priority Consideration for Certain Projects.— 

(1) Construction of new runways.— 
In making grants to sponsors described in subsection (b)(2), the Secretary shall give priority consideration to multi-year projects for construction of new runways that the Secretary finds are cost beneficial and would increase capacity in a region of the United States.
(2) Airport development for turbine powered aircraft.— 
In making grants to sponsors described in subsection (b)(1), the Secretary shall give priority consideration to airport development projects to support operations by turbine powered aircraft if the non-Federal share of the project is at least 40 percent.
(e) Set-Aside for Meeting Safety Terms in Airport Operating Certificates.— 
In the first fiscal year beginning after the effective date of regulations issued to carry out section 44706 (b) with respect to airports described in section 44706 (a)(2), and in each of the next 4 fiscal years, the lesser of $15,000,000 or 20 percent of the amounts that would otherwise be distributed to sponsors of airports under subsection (b)(2) shall be used to assist the airports in meeting the terms established by the regulations. If the Secretary publishes in the Federal Register a finding that all the terms established by the regulations have been met, this subsection shall cease to be effective as of the date of such publication.
(f) Notification of Source of Grant.— 
Whenever the Secretary makes a grant under this section, the Secretary shall notify the recipient of the grant, in writing, that the source of the grant is from the small airport fund.

49 USC 47117 - Use of apportioned amounts

(a) Grant Purpose.— 
Except as provided in this section, an amount apportioned under section 47114 (c)(1) or (d)(2) of this title is available for making grants for any purpose for which amounts are made available under section 48103 of this title.
(b) Period of Availability.— 
An amount apportioned under section 47114 of this title is available to be obligated for grants under the apportionment only during the fiscal year for which the amount was apportioned and the 2 fiscal years immediately after that year or the 3 fiscal years immediately following that year in the case of a nonhub airport or any airport that is not a commercial service airport. If the amount is not obligated under the apportionment within that time, it shall be added to the discretionary fund.
(c) Primary Airports.— 

(1) An amount apportioned to a sponsor of a primary airport under section 47114 (c)(1) of this title is available for grants for any public-use airport of the sponsor included in the national plan of integrated airport systems.
(2) Waiver.— 
A sponsor of an airport may make an agreement with the Secretary of Transportation waiving the sponsors claim to any part of the amount apportioned for the airport under sections 47114 (c) and 47114 (d)(3)(A) if the Secretary agrees to make the waived amount available for a grant for another public-use airport in the same State or geographical area as the airport, as determined by the Secretary.
(d) State Use.— 
An amount apportioned to a State under
(1) section 47114 (d)(2)(A) of this title is available for grants for airports located in the State; and
(2) section 47114 (d)(2)(B) or (C) of this title is available for grants for airports described in section 47114 (d)(2)(B) or (C) and located in the State.
(e) Special Apportionment Categories.— 

(1) The Secretary shall use amounts available to the discretionary fund under section 47115 of this title for each fiscal year as follows:
(A) At least 35 percent for grants for airport noise compatibility planning under section 47505 (a)(2), for carrying out noise compatibility programs under section 47504 (c), for noise mitigation projects approved in an environmental record of decision for an airport development project under this title, for compatible land use planning and projects carried out by State and local governments under section 47141, and for airport development described in section 47102 (3)(F), 47102 (3)(K), or 47102 (3)(L) to comply with the Clean Air Act (42 U.S.C. 7401 et seq.). The Secretary may count the amount of grants made for such planning and programs with funds apportioned under section 47114 in that fiscal year in determining whether or not such 35 percent requirement is being met in that fiscal year.
(B) at[1] least 4 percent to sponsors of current or former military airports designated by the Secretary under section 47118 (a) of this title for grants for developing current and former military airports to improve the capacity of the national air transportation system and to sponsors of noncommercial service airports for grants for operational and maintenance expenses at any such airport if the amount of such grants to the sponsor of the airport does not exceed $30,000 in that fiscal year, if the Secretary determines that the airport is adversely affected by the closure or realignment of a military base, and if the sponsor of the airport certifies that the airport would otherwise close if the airport does not receive the grant.
(C) In any fiscal year in which the total amount made available under section 48103 is $3,200,000,000 or more, at least two-thirds of 1 percent for grants to sponsors of reliever airports which have
(i) more than 75,000 annual operations;
(ii) a runway with a minimum usable landing distance of 5,000 feet;
(iii) a precision instrument landing procedure;
(iv) a minimum number of aircraft, to be determined by the Secretary, based at the airport; and
(v) been designated by the Secretary as a reliever airport to an airport with 20,000 hours of annual delays in commercial passenger aircraft takeoffs and landings.
(2) If the Secretary decides that an amount required to be used for grants under paragraph (1) of this subsection cannot be used for a fiscal year because there are insufficient qualified grant applications, the amount the Secretary determines cannot be used is available during the fiscal year for grants for other airports or for other purposes for which amounts are authorized for grants under section 48103 of this title.
(3) Priority.— 
The Secretary shall give priority in making grants under paragraph (1)(A) to applications for airport noise compatibility planning and programs at and around
(A) Chicago OHare International Airport;
(B) LaGuardia Airport;
(C) John F. Kennedy International Airport; and
(D) Ronald Reagan Washington National Airport.
(f) Discretionary Use of Apportionments.— 

(1) In general.— 
Subject to paragraph (2), if the Secretary finds that all or part of an amount of an apportionment under section 47114 is not required during a fiscal year to fund a grant for which the apportionment may be used, the Secretary may use during such fiscal year the amount not so required to make grants for any purpose for which grants may be made under section 48103. The finding may be based on the notifications that the Secretary receives under section 47105 (f) or on other information received from airport sponsors.
(2) Restoration of apportionments.— 

(A) In general.— 
If the fiscal year for which a finding is made under paragraph (1) with respect to an apportionment is not the last fiscal year of availability of the apportionment under subsection (b), the Secretary shall restore to the apportionment an amount equal to the amount of the apportionment used under paragraph (1) for a discretionary grant whenever a sufficient amount is made available under section 48103.
(B) Period of availability.— 
If restoration under this paragraph is made in the fiscal year for which the finding is made or the succeeding fiscal year, the amount restored shall be subject to the original period of availability of the apportionment under subsection (b). If the restoration is made thereafter, the amount restored shall remain available in accordance with subsection (b) for the original period of availability of the apportionment plus the number of fiscal years during which a sufficient amount was not available for the restoration.
(3) Newly available amounts.— 

(A) Restored amounts to be unavailable for discretionary grants.— 
Of an amount newly available under section 48103 of this title, an amount equal to the amounts restored under paragraph (2) shall not be available for discretionary grant obligations under section 47115.
(B) Use of remaining amounts.— 
Subparagraph (A) does not impair the Secretarys authority under paragraph (1), after a restoration under paragraph (2), to apply all or part of a restored amount that is not required to fund a grant under an apportionment to fund discretionary grants.
(4) Limitations on obligations apply.— 
Nothing in this subsection shall be construed to authorize the Secretary to incur grant obligations under section 47104 for a fiscal year in an amount greater than the amount made available under section 48103 for such obligations for such fiscal year.
(g) Limiting Authority of Secretary.— 
The authority of the Secretary to make grants during a fiscal year from amounts that were apportioned for a prior fiscal year and remain available for approved airport development project grants under subsection (b) of this section may be impaired only by a law enacted after September 3, 1982, that expressly limits that authority.
[1] So in original. Probably should be capitalized.

49 USC 47118 - Designating current and former military airports

(a) General Requirements.— 
The Secretary of Transportation shall designate current or former military airports for which grants may be made under section 47117 (e)(1)(B) of this title. The maximum number of airports bearing such designation at any time is 15. The Secretary may only so designate an airport (other than an airport so designated before August 24, 1994) if
(1) the airport is a former military installation closed or realigned under
(A) section 2687 of title 10;
(B) section 201 of the Defense Authorization Amendments and Base Closure and Realignment Act (10 U.S.C. 2687 note ); or
(C) section 2905 of the Defense Base Closure and Realignment Act of 1990 (10 U.S.C. 2687 note ); or
(2) the airport is a military installation with both military and civil aircraft operations.
(b) Survey.— 
Not later than September 30, 1991, the Secretary shall complete a survey of current and former military airports to identify which airports have the greatest potential to improve the capacity of the national air transportation system. The survey shall identify the capital development needs of those airports to make them part of the system and which of those qualify for grants under section 47104 of this title.
(c) Considerations.— 
In carrying out this section, the Secretary shall consider only current or former military airports for designation under this section if a grant under section 47117 (e)(1)(B) would
(1) reduce delays at an airport with more than 20,000 hours of annual delays in commercial passenger aircraft takeoffs and landings; or
(2) enhance airport and air traffic control system capacity in a metropolitan area or reduce current and projected flight delays.
(d) Grants.— 
Grants under section 47117 (e)(1)(B) of this title may be made for an airport designated under subsection (a) of this section for the 5 fiscal years following the designation, and for subsequent periods, each not to exceed 5 fiscal years, if the Secretary determines that the airport satisfies the designation criteria under subsection (a) at the beginning of each such subsequent period.
(e) Terminal Building Facilities.— 
From amounts the Secretary distributes to an airport under section 47115, $10,000,000 for each of fiscal years 2004 and 2005, and $7,000,000 for each fiscal year thereafter, is available to the sponsor of a current or former military airport the Secretary designates under this section to construct, improve, or repair a terminal building facility, including terminal gates used for revenue passengers getting on or off aircraft. A gate constructed, improved, or repaired under this subsection
(1) may not be leased for more than 10 years; and
(2) is not subject to majority in interest clauses.
(f) Parking Lots, Fuel Farms, Utilities, Hangars, and Air Cargo Terminals.— 

(1) Construction.— 
From amounts the Secretary distributes to an airport under section 47115, $10,000,000 for each of fiscal years 2004 and 2005, and $7,000,000 for each fiscal year thereafter, is available to the sponsor of a current or former military airport the Secretary designates under this section to construct, improve, or repair airport surface parking lots, fuel farms, utilities, and hangars and air cargo terminals of an area that is 50,000 square feet or less.
(2) Reimbursement.— 
Upon approval of the Secretary, the sponsor of a current or former military airport the Secretary designates under this section may use an amount apportioned under section 47114, or made available under section 47115 or 47117 (e)(1)(B), to the airport for reimbursement of costs incurred by the airport in fiscal years 2003 and 2004 for construction, improvement, or repair described in paragraph (1).
(g) Designation of General Aviation Airport.— 
Notwithstanding any other provision of this section, one of the airports bearing a designation under subsection (a) may be a general aviation airport that was a former military installation closed or realigned under a section referred to in subsection (a)(1).

49 USC 47119 - Terminal development costs

(a) Repaying Borrowed Money.— 

(1) Terminal development costs incurred after june 30, 1970, and before july 12, 1976.— 
An amount apportioned under section 47114 and made available to the sponsor of a commercial service airport at which terminal development was carried out after June 30, 1970, and before July 12, 1976, is available to repay immediately money borrowed and used to pay the costs for such terminal development if those costs would be allowable project costs under section 47110 (d) if they had been incurred after September 3, 1982.
(2) Terminal development costs incurred between january 1, 1992, and october 31, 1992.— 
An amount apportioned under section 47114 and made available to the sponsor of a nonhub airport at which terminal development was carried out between January 1, 1992, and October 31, 1992, is available to repay immediately money borrowed and to pay the costs for such terminal development if those costs would be allowable project costs under section 47110 (d).
(3) Terminal development costs at primary airports.— 
An amount apportioned under section 47114 or available under subsection (b)(3) to a primary airport
(A) that was a nonhub airport in the most recent year used to calculate apportionments under section 47114;
(B) that is a designated airport under section 47118 in fiscal year 2003; and
(C) at which terminal development is carried out between January 2003 and August 2004,

is available to repay immediately money borrowed and used to pay the costs for such terminal development if those costs would be allowable project costs under section 47110 (d).

(4) Conditions for grant.— 
An amount is available for a grant under this subsection only if
(A) the sponsor submits the certification required under section 47110 (d);
(B) the Secretary of Transportation decides that using the amount to repay the borrowed money will not defer an airport development project outside the terminal area at that airport; and
(C) amounts available for airport development under this subchapter will not be used for additional terminal development projects at the airport for at least 1 year beginning on the date the grant is used to repay the borrowed money.
(5) Applicability of certain limitations.— 
A grant under this subsection shall be subject to the limitations in subsection (b)(1) and (2).
(b) Availability of Amounts.— 
In a fiscal year, the Secretary may make available
(1) to a sponsor of a primary airport, any part of amounts apportioned to the sponsor for the fiscal year under section 47114 (c)(1) of this title to pay project costs allowable under section 47110 (d) of this title;
(2) on approval of the Secretary, not more than $200,000 of the amount that may be distributed for the fiscal year from the discretionary fund established under section 47115 of this title
(A) to a sponsor of a nonprimary commercial service airport to pay project costs allowable under section 47110 (d) of this title; and
(B) to a sponsor of a reliever airport for the types of project costs allowable under section 47110 (d), including project costs allowable for a commercial service airport that each year does not have more than .05 percent of the total boardings in the United States;
(3) for use by a primary airport that each year does not have more than .05 percent of the total boardings in the United States, any part of amounts that may be distributed for the fiscal year from the discretionary fund and small airport fund to pay project costs allowable under section 47110 (d) of this title;
(4) not more than $25,000,000 to pay project costs allowable for the fiscal year under section 47110 (d) of this title for projects at commercial service airports that were not eligible for assistance for terminal development during the fiscal year ending September 30, 1980, under section 20(b) of the Airport and Airway Development Act of 1970; or
(5) to a sponsor of a nonprimary airport, any part of amounts apportioned to the sponsor for the fiscal year under section 47114 (d)(3)(A) for project costs allowable under section 47110 (d).
(c) Nonhub Airports.— 
With respect to a project at a commercial service airport which annually has less than 0.05 percent of the total enplanements in the United States, the Secretary may approve the use of the amounts described in subsection (a) notwithstanding the requirements of sections 47107 (a)(17), 47112, and 47113.
(d) Determination of Passenger Boarding at Commercial Service Airports.— 
For the purpose of determining whether an amount may be distributed for a fiscal year from the discretionary fund in accordance with subsection (b)(2)(A) to a commercial service airport, the Secretary shall make the determination of whether or not a public airport is a commercial service airport on the basis of the number of passenger boardings and type of air service at the public airport in the calendar year that includes the first day of such fiscal year or the preceding calendar year, whichever is more beneficial to the airport.

49 USC 47120 - Grant priority

(a) In General.— 
In making a grant under this subchapter, the Secretary of Transportation may give priority to a project that is consistent with an integrated airport system plan.
(b) Discretionary Funding To Be Used for Higher Priority Projects.— 
The Administrator of the Federal Aviation Administration shall discourage airport sponsors and airports from using entitlement funds for lower priority projects by giving lower priority to discretionary projects submitted by airport sponsors and airports that have used entitlement funds for projects that have a lower priority than the projects for which discretionary funds are being requested.

49 USC 47121 - Records and audits

(a) Records.— 
A sponsor shall keep the records the Secretary of Transportation requires. The Secretary may require records
(1) that disclose
(A) the amount and disposition by the sponsor of the proceeds of the grant;
(B) the total cost of the plan or program for which the grant is given or used; and
(C) the amounts and kinds of costs of the plan or program provided by other sources; and
(2) that make it easier to carry out an audit.
(b) Audits and Examinations.— 
The Secretary and the Comptroller General may audit and examine records of a sponsor that are related to a grant made under this subchapter.
(c) Authority of Comptroller General.— 
When an independent audit is made of the accounts of a sponsor under this subchapter related to the disposition of the proceeds of the grant or related to the plan or program for which the grant was given or used, the sponsor shall submit a certified copy of the audit to the Secretary not more than 6 months after the end of the fiscal year for which the audit was made. The Comptroller General may report to Congress describing the results of each audit conducted or reviewed by the Comptroller General under this section during the prior fiscal year.
(d) Audit Requirement.— 
The Secretary may require a sponsor to conduct an appropriate audit as a condition for receiving a grant under this subchapter.
(e) Annual Review.— 
The Secretary shall review annually the recordkeeping and reporting requirements under this subchapter to ensure that they are the minimum necessary to carry out this subchapter.
(f) Withholding Information From Congress.— 
This section does not authorize the Secretary or the Comptroller General to withhold information from a committee of Congress authorized to have the information.

49 USC 47122 - Administrative

(a) General.— 
The Secretary of Transportation may take action the Secretary considers necessary to carry out this subchapter, including conducting investigations and public hearings, prescribing regulations and procedures, and issuing orders.
(b) Conducting Investigations and Public Hearings.— 
In conducting an investigation or public hearing under this subchapter, the Secretary has the same authority the Secretary has under section 46104 of this title. An action of the Secretary in exercising that authority is governed by the procedures specified in section 46104 and shall be enforced as provided in section 46104.

49 USC 47123 - Nondiscrimination

The Secretary of Transportation shall take affirmative action to ensure that an individual is not excluded because of race, creed, color, national origin, or sex from participating in an activity carried out with money received under a grant under this subchapter. The Secretary shall prescribe regulations necessary to carry out this section. The regulations shall be similar to those in effect under title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.). This section is in addition to title VI of the Act.

49 USC 47124 - Agreements for State and local operation of airport facilities

(a) Government Relief From Liability.— 
The Secretary of Transportation shall ensure that an agreement under this subchapter with a qualified entity (as determined by the Secretary), State, or a political subdivision of a State to allow the entity, State, or subdivision to operate an airport facility relieves the United States Government from any liability arising out of, or related to, acts or omissions of employees of the entity, State, or subdivision in operating the airport facility.
(b) Air Traffic Control Contract Program.— 

(1) The Secretary shall continue the low activity (Visual Flight Rules) level I air traffic control tower contract program established under subsection (a) of this section for towers existing on December 30, 1987, and extend the program to other towers as practicable.
(2) The Secretary may make a contract with a qualified entity (as determined by the Secretary) or, on a sole source basis, with a State or a political subdivision of a State to allow the entity, State, or subdivision to operate an airport traffic control tower classified as a level I (Visual Flight Rules) tower if the Secretary decides that the entity, State, or subdivision has the capability to comply with the requirements of this paragraph. The contract shall require that the entity, State, or subdivision comply with applicable safety regulations in operating the facility and with applicable competition requirements in making a subcontract to perform work to carry out the contract.
(3) Contract air traffic control tower program.— 

(A) In general.— 
The Secretary shall establish a program to contract for air traffic control services at nonapproach control towers, as defined by the Secretary, that do not qualify for the contract tower program established under subsection (a) and continued under paragraph (1) (in this paragraph referred to as the Contract Tower Program).
(B) Program components.— 
In carrying out the program, the Secretary shall
(i) utilize for purposes of cost-benefit analyses, current, actual, site-specific data, forecast estimates, or airport master plan data provided by a facility owner or operator and verified by the Secretary; and
(ii) approve for participation only facilities willing to fund a pro rata share of the operating costs of the air traffic control tower to achieve a 1-to-1 benefit-to-cost ratio using actual site-specific contract tower operating costs in any case in which there is an operating air traffic control tower, as required for eligibility under the Contract Tower Program.
(C) Priority.— 
In selecting facilities to participate in the program, the Secretary shall give priority to the following facilities:
(i) Air traffic control towers that are participating in the Contract Tower Program but have been notified that they will be terminated from such program because the Secretary has determined that the benefit-to-cost ratio for their continuation in such program is less than 1.0.
(ii) Air traffic control towers that the Secretary determines have a benefit-to-cost ratio of at least .50.
(iii) Air traffic control towers of the Federal Aviation Administration that are closed as a result of the air traffic controllers strike in 1981.
(iv) Air traffic control towers located at airports or points at which an air carrier is receiving compensation under the essential air service program under this chapter.
(v) Air traffic control towers located at airports that are prepared to assume partial responsibility for maintenance costs.
(vi) Air traffic control towers located at airports with safety or operational problems related to topography, weather, runway configuration, or mix of aircraft.
(vii) Air traffic control towers located at an airport at which the community has been operating the tower at its own expense.
(D) Costs exceeding benefits.— 
If the costs of operating an air traffic tower under the program exceed the benefits, the airport sponsor or State or local government having jurisdiction over the airport shall pay the portion of the costs that exceed such benefit.
(E) Funding.— 
Of the amounts appropriated pursuant to section 106 (k), not more than $6,500,000 for fiscal 2004, $7,000,000 for fiscal year 2005, $7,500,000 for fiscal year 2006, and $8,000,000 for fiscal year 2007 may be used to carry out this paragraph.
(4) Construction of air traffic control towers.— 

(A) Grants.— 
The Secretary may provide grants to a sponsor of
(i) a primary airport
(I) from amounts made available under sections 47114 (c)(1) and 47114 (c)(2) for the construction or improvement of a nonapproach control tower, as defined by the Secretary, and for the acquisition and installation of air traffic control, communications, and related equipment to be used in that tower;
(II) from amounts made available under sections 47114 (c)(1) and 47114 (c)(2) for reimbursement for the cost of construction or improvement of a nonapproach control tower, as defined by the Secretary, incurred after October 1, 1996, if the sponsor complied with the requirements of sections 47107 (e), 47112 (b), and 47112 (c) in constructing or improving that tower; and
(III) from amounts made available under sections 47114 (c)(1) and 47114 (c)(2) for reimbursement for the cost of acquiring and installing in that tower air traffic control, communications, and related equipment that was acquired or installed after October 1, 1996; and
(ii) a public-use airport that is not a primary airport
(I) from amounts made available under sections 47114 (c)(2) and 47114 (d) for the construction or improvement of a nonapproach control tower, as defined by the Secretary, and for the acquisition and installation of air traffic control, communications, and related equipment to be used in that tower;
(II) from amounts made available under sections 47114 (c)(2) and 47114 (d)(3)(A) for reimbursement for the cost of construction or improvement of a nonapproach control tower, as defined by the Secretary, incurred after October 1, 1996, if the sponsor complied with the requirements of sections 47107 (e), 47112 (b), and 47112 (c) in constructing or improving that tower; and
(III) from amounts made available under sections 47114 (c)(2) and 47114 (d)(3)(A) for reimbursement for the cost of acquiring and installing in that tower air traffic control, communications, and related equipment that was acquired or installed after October 1, 1996.
(B) Eligibility.— 
An airport sponsor shall be eligible for a grant under this paragraph only if
(i) 
(I) the sponsor is a participant in the Federal Aviation Administration contract tower program established under subsection (a) and continued under paragraph (1) or the pilot program established under paragraph (3); or
(II) construction of a nonapproach control tower would qualify the sponsor to be eligible to participate in such program;
(ii) the sponsor certifies that it will pay not less than 10 percent of the cost of the activities for which the sponsor is receiving assistance under this paragraph;
(iii) the Secretary affirmatively accepts the proposed contract tower into a contract tower program under this section and certifies that the Secretary will seek future appropriations to pay the Federal Aviation Administrations cost of the contract to operate the tower to be constructed under this paragraph;
(iv) the sponsor certifies that it will pay its share of the cost of the contract to operate the tower to be constructed under this paragraph; and
(v) in the case of a tower to be constructed under this paragraph from amounts made available under section 47114 (d)(2) or 47114 (d)(3)(B), the Secretary certifies that
(I) the Federal Aviation Administration has consulted the State within the borders of which the tower is to be constructed and the State supports the construction of the tower as part of its State airport capital plan; and
(II) the selection of the tower for funding is based on objective criteria.
(C) Limitation on federal share.— 
The Federal share of the cost of construction of a nonapproach control tower under this paragraph may not exceed $1,500,000.

49 USC 47125 - Conveyances of United States Government land

(a) Conveyances to Public Agencies.— 
Except as provided in subsection (b) of this section, the Secretary of Transportation shall request the head of the department, agency, or instrumentality of the United States Government owning or controlling land or airspace to convey a property interest in the land or airspace to the public agency sponsoring the project or owning or controlling the airport when necessary to carry out a project under this subchapter at a public airport, to operate a public airport, or for the future development of an airport under the national plan of integrated airport systems. The head of the department, agency, or instrumentality shall decide whether the requested conveyance is consistent with the needs of the department, agency, or instrumentality and shall notify the Secretary of that decision not later than 4 months after receiving the request. If the head of the department, agency, or instrumentality decides that the requested conveyance is consistent with its needs, the head of the department, agency, or instrumentality, with the approval of the Attorney General and without cost to the Government, shall make the conveyance. A conveyance may be made only on the condition that the property interest conveyed reverts to the Government, at the option of the Secretary, to the extent it is not developed for an airport purpose or used consistently with the conveyance. Before waiving a condition that property be used for an aeronautical purpose under the preceding sentence, the Secretary must provide notice to the public not less than 30 days before waiving such condition.
(b) Nonapplication.— 
Except as specifically provided by law, subsection (a) of this section does not apply to land or airspace owned or controlled by the Government within
(1) a national park, national monument, national recreation area, or similar area under the administration of the National Park Service;
(2) a unit of the National Wildlife Refuge System or similar area under the jurisdiction of the United States Fish and Wildlife Service; or
(3) a national forest or Indian reservation.

49 USC 47126 - Criminal penalties for false statements

A person (including an officer, agent, or employee of the United States Government or a public agency) shall be fined under title 18, imprisoned for not more than 5 years, or both, if the person, with intent to defraud the Government, knowingly makes
(1) a false statement about the kind, quantity, quality, or cost of the material used or to be used, or the quantity, quality, or cost of work performed or to be performed, in connection with the submission of a plan, map, specification, contract, or estimate of project cost for a project included in a grant application submitted to the Secretary of Transportation for approval under this subchapter;
(2) a false statement or claim for work or material for a project included in a grant application approved by the Secretary under this subchapter; or
(3) a false statement in a report or certification required under this subchapter.

49 USC 47127 - Ground transportation demonstration projects

(a) General Authority.— 
To improve the airport and airway system of the United States consistent with regional airport system plans financed under section 13(b) of the Airport and Airway Development Act of 1970, the Secretary of Transportation may carry out ground transportation demonstration projects to improve ground access to air carrier airport terminals. The Secretary may carry out a demonstration project independently or by grant or contract, including an agreement with another department, agency, or instrumentality of the United States Government.
(b) Priority.— 
In carrying out this section, the Secretary shall give priority to a demonstration project that
(1) affects an airport in an area with an operating regional rapid transit system with existing facilities reasonably near the airport;
(2) includes connection of the airport terminal to that system;
(3) is consistent with and supports a regional airport system plan adopted by the planning agency for the region and submitted to the Secretary; and
(4) improves access to air transportation for individuals residing or working in the region by encouraging the optimal balance of use of airports in the region.

49 USC 47128 - State block grant program

(a) General Requirements.— 
The Secretary of Transportation shall prescribe regulations to carry out a State block grant program. The regulations shall provide that the Secretary may designate not more than 9 qualified States for fiscal years 2000 and 2001 and 10 qualified States for each fiscal year thereafter to assume administrative responsibility for all airport grant amounts available under this subchapter, except for amounts designated for use at primary airports.
(b) Applications and Selection.— 
A State wishing to participate in the program must submit an application to the Secretary. The Secretary shall select a State on the basis of its application only after
(1) deciding the State has an organization capable of effectively administering a block grant made under this section;
(2) deciding the State uses a satisfactory airport system planning process;
(3) deciding the State uses a programming process acceptable to the Secretary;
(4) finding that the State has agreed to comply with United States Government standard requirements for administering the block grant; and
(5) finding that the State has agreed to provide the Secretary with program information the Secretary requires.
(c) Safety and Security Needs and Needs of System.— 
Before deciding whether a planning process is satisfactory or a programming process is acceptable under subsection (b)(2) or (b)(3) of this section, the Secretary shall ensure that the process provides for meeting critical safety and security needs and that the programming process ensures that the needs of the national airport system will be addressed in deciding which projects will receive money from the Government. In carrying out this subsection, the Secretary shall permit a State to use the priority system of the State if such system is not inconsistent with the national priority system.

49 USC 47129 - Resolution of airport-air carrier disputes concerning airport fees

(a) Authority To Request Secretary’s Determination.— 

(1) In general.— 
The Secretary of Transportation shall issue a determination as to whether a fee imposed upon one or more air carriers (as defined in section 40102 of this title) by the owner or operator of an airport is reasonable if
(A) a written request for such determination is filed with the Secretary by such owner or operator; or
(B) a written complaint requesting such determination is filed with the Secretary by an affected air carrier within 60 days after such carrier receives written notice of the establishment or increase of such fee.
(2) Calculation of fee.— 
A fee subject to a determination of reasonableness under this section may be calculated pursuant to either a compensatory or residual fee methodology or any combination thereof.
(3) Secretary not to set fee.— 
In determining whether a fee is reasonable under this section, the Secretary may only determine whether the fee is reasonable or unreasonable and shall not set the level of the fee.
(4) Fees imposed by privately-owned airports.— 
In evaluating the reasonableness of a fee imposed by an airport receiving an exemption under section 47134 of this title, the Secretary shall consider whether the airport has complied with section 47134 (c)(4).
(b) Procedural Regulations.— 
Not later than 90 days after August 23, 1994, the Secretary shall publish in the Federal Register final regulations, policy statements, or guidelines establishing
(1) the procedures for acting upon any written request or complaint filed under subsection (a)(1); and
(2) the standards or guidelines that shall be used by the Secretary in determining under this section whether an airport fee is reasonable.
(c) Decisions By Secretary.— 
The final regulations, policy statements, or guidelines required in subsection (b) shall provide the following:
(1) Not more than 120 days after an air carrier files with the Secretary a written complaint relating to an airport fee, the Secretary shall issue a final order determining whether such fee is reasonable.
(2) Within 30 days after such complaint is filed with the Secretary, the Secretary shall dismiss the complaint if no significant dispute exists or shall assign the matter to an administrative law judge; and thereafter the matter shall be handled in accordance with part 302 of title 14, Code of Federal Regulations, or as modified by the Secretary to ensure an orderly disposition of the matter within the 120-day period and any specifically applicable provisions of this section.
(3) The administrative law judge shall issue a recommended decision within 60 days after the complaint is assigned or within such shorter period as the Secretary may specify.
(4) If the Secretary, upon the expiration of 120 days after the filing of the complaint, has not issued a final order, the decision of the administrative law judge shall be deemed to be the final order of the Secretary.
(5) Any party to the dispute may seek review of a final order of the Secretary under this subsection in the Circuit Court of Appeals for the District of Columbia Circuit or the court of appeals in the circuit where the airport which gives rise to the written complaint is located.
(6) Any findings of fact in a final order of the Secretary under this subsection, if supported by substantial evidence, shall be conclusive if challenged in a court pursuant to this subsection. No objection to such a final order shall be considered by the court unless objection was urged before an administrative law judge or the Secretary at a proceeding under this subsection or, if not so urged, unless there were reasonable grounds for failure to do so.
(d) Payment Under Protest; Guarantee of Air Carrier Access.— 

(1) Payment under protest.— 

(A) In general.— 
Any fee increase or newly established fee which is the subject of a complaint that is not dismissed by the Secretary shall be paid by the complainant air carrier to the airport under protest.
(B) Referral or credit.— 
Any amounts paid under this subsection by a complainant air carrier to the airport under protest shall be subject to refund or credit to the air carrier in accordance with directions in the final order of the Secretary within 30 days of such order.
(C) Assurance of timely repayment.— 
In order to assure the timely repayment, with interest, of amounts in dispute determined not to be reasonable by the Secretary, the airport shall obtain a letter of credit, or surety bond, or other suitable credit facility, equal to the amount in dispute that is due during the 120-day period established by this section, plus interest, unless the airport and the complainant air carrier agree otherwise.
(D) Deadline.— 
The letter of credit, or surety bond, or other suitable credit facility shall be provided to the Secretary within 20 days of the filing of the complaint and shall remain in effect for 30 days after the earlier of 120 days or the issuance of a timely final order by the Secretary determining whether such fee is reasonable.
(2) Guarantee of air carrier access.— 
Contingent upon an air carriers compliance with the requirements of paragraph (1) and pending the issuance of a final order by the Secretary determining the reasonableness of a fee that is the subject of a complaint filed under subsection (a)(1)(B), an owner or operator of an airport may not deny an air carrier currently providing air service at the airport reasonable access to airport facilities or service, or otherwise interfere with an air carriers prices, routes, or services, as a means of enforcing the fee.
(e) Applicability.— 
This section does not apply to
(1) a fee imposed pursuant to a written agreement with air carriers using the facilities of an airport;
(2) a fee imposed pursuant to a financing agreement or covenant entered into prior to August 23, 1994; or
(3) any other existing fee not in dispute as of August 23, 1994.
(f) Effect On Existing Agreements.— 
Nothing in this section shall adversely affect
(1) the rights of any party under any existing written agreement between an air carrier and the owner or operator of an airport; or
(2) the ability of an airport to meet its obligations under a financing agreement, or covenant, that is in force as of August 23, 1994.
(g) Definition.— 
In this section, the term fee means any rate, rental charge, landing fee, or other service charge for the use of airport facilities.

49 USC 47130 - Airport safety data collection

Notwithstanding any other provision of law, the Administrator of the Federal Aviation Administration may award a contract, using sole source or limited source authority, or enter into a cooperative agreement with, or provide a grant from amounts made available under section 48103 to, a private company or entity for the collection of airport safety data. In the event that a grant is provided under this section, the United States Governments share of the cost of the data collection shall be 100 percent.

49 USC 47131 - Annual report

(a) General Rule.— 
Not later than April 1 of each year, the Secretary of Transportation shall submit to Congress a report on activities carried out under this subchapter during the prior fiscal year. The report shall include
(1) a detailed statement of airport development completed;
(2) the status of each project undertaken;
(3) the allocation of appropriations;
(4) an itemized statement of expenditures and receipts; and
(5) a detailed statement listing airports that the Secretary believes are not in compliance with grant assurances or other requirements with respect to airport lands and including the circumstances of such noncompliance, the timelines for corrective action, and the corrective action the Secretary intends to take to bring the airport sponsor into compliance.
(b) Special Rule for Listing Noncompliant Airports.— 
The Secretary does not have to conduct an audit or make a final determination before including an airport on the list referred to in subsection (a)(5).

49 USC 47132 - Repealed. Pub. L. 106181, title I, 123(a)(1), Apr. 5, 2000, 114 Stat. 74]

Section, added Pub. L. 104–264, title I, § 142(a), Oct. 9, 1996, 110 Stat. 3221, temporarily directed the Administrator of the Federal Aviation Administration to issue guidelines to carry out not more than 10 pavement maintenance pilot projects.

49 USC 47133 - Restriction on use of revenues

(a) Prohibition.— 
Local taxes on aviation fuel (except taxes in effect on December 30, 1987) or the revenues generated by an airport that is the subject of Federal assistance may not be expended for any purpose other than the capital or operating costs of
(1) the airport;
(2) the local airport system; or
(3) any other local facility that is owned or operated by the person or entity that owns or operates the airport that is directly and substantially related to the air transportation of passengers or property.
(b) Exceptions.— 
Subsection (a) shall not apply if a provision enacted not later than September 2, 1982, in a law controlling financing by the airport owner or operator, or a covenant or assurance in a debt obligation issued not later than September 2, 1982, by the owner or operator, provides that the revenues, including local taxes on aviation fuel at public airports, from any of the facilities of the owner or operator, including the airport, be used to support not only the airport but also the general debt obligations or other facilities of the owner or operator.
(c) Rule of Construction.— 
Nothing in this section may be construed to prevent the use of a State tax on aviation fuel to support a State aviation program or the use of airport revenue on or off the airport for a noise mitigation purpose.

49 USC 47134 - Pilot program on private ownership of airports

(a) Submission of Applications.— 
If a sponsor intends to sell or lease a general aviation airport or lease any other type of airport for a long term to a person (other than a public agency), the sponsor and purchaser or lessee may apply to the Secretary of Transportation for exemptions under this section.
(b) Approval of Applications.— 
The Secretary may approve, with respect to not more than 5 airports, applications submitted under subsection (a) granting exemptions from the following provisions:
(1) Use of revenues.— 

(A) In general.— 
The Secretary may grant an exemption to a sponsor from the provisions of sections 47107 (b) and 47133 of this title (and any other law, regulation, or grant assurance) to the extent necessary to permit the sponsor to recover from the sale or lease of the airport such amount as may be approved
(i) in the case of a primary airport, by at least 65 percent of the scheduled air carriers serving the airport and by scheduled and nonscheduled air carriers whose aircraft landing at the airport during the preceding calendar year, had a total landed weight during the preceding calendar year of at least 65 percent of the total landed weight of all aircraft landing at the airport during such year; or
(ii) in the case of a nonprimary airport, by the Secretary after the airport has consulted with at least 65 percent of the owners of aircraft based at that airport, as determined by the Secretary.
(B) Objection to exemption.— 
An air carrier shall be deemed to have approved a sponsors application for an exemption under subparagraph (A) unless the air carrier has submitted an objection, in writing, to the sponsor within 60 days of the filing of the sponsors application with the Secretary, or within 60 days of the service of the application upon that air carrier, whichever is later.
(C) Landed weight defined.— 
In this paragraph, the term landed weight means the weight of aircraft transporting passengers or cargo, or both, in intrastate, interstate, and foreign air transportation, as the Secretary determines under regulations the Secretary prescribes.
(2) Repayment requirements.— 
The Secretary may grant an exemption to a sponsor from the provisions of sections 47107 and 47152 of this title (and any other law, regulation, or grant assurance) to the extent necessary to waive any obligation of the sponsor to repay to the Federal Government any grants, or to return to the Federal Government any property, received by the airport under this title, the Airport and Airway Improvement Act of 1982, or any other law.
(3) Compensation from airport operations.— 
The Secretary may grant an exemption to a purchaser or lessee from the provisions of sections 47107 (b) and 47133 of this title (and any other law, regulation, or grant assurance) to the extent necessary to permit the purchaser or lessee to earn compensation from the operations of the airport.
(c) Terms and Conditions.— 
The Secretary may approve an application under subsection (b) only if the Secretary finds that the sale or lease agreement includes provisions satisfactory to the Secretary to ensure the following:
(1) The airport will continue to be available for public use on reasonable terms and conditions and without unjust discrimination.
(2) The operation of the airport will not be interrupted in the event that the purchaser or lessee becomes insolvent or seeks or becomes subject to any State or Federal bankruptcy, reorganization, insolvency, liquidation, or dissolution proceeding or any petition or similar law seeking the dissolution or reorganization of the purchaser or lessee or the appointment of a receiver, trustee, custodian, or liquidator for the purchaser or lessee or a substantial part of the purchaser or lessees property, assets, or business.
(3) The purchaser or lessee will maintain, improve, and modernize the facilities of the airport through capital investments and will submit to the Secretary a plan for carrying out such maintenance, improvements, and modernization.
(4) Every fee of the airport imposed on an air carrier on the day before the date of the lease of the airport will not increase faster than the rate of inflation unless a higher amount is approved
(A) by at least 65 percent of the air carriers serving the airport; and
(B) by air carriers whose aircraft landing at the airport during the preceding calendar year had a total landed weight during the preceding calendar year of at least 65 percent of the total landed weight of all aircraft landing at the airport during such year.
(5) The percentage increase in fees imposed on general aviation aircraft at the airport will not exceed the percentage increase in fees imposed on air carriers at the airport.
(6) Safety and security at the airport will be maintained at the highest possible levels.
(7) The adverse effects of noise from operations at the airport will be mitigated to the same extent as at a public airport.
(8) Any adverse effects on the environment from airport operations will be mitigated to the same extent as at a public airport.
(9) Any collective bargaining agreement that covers employees of the airport and is in effect on the date of the sale or lease of the airport will not be abrogated by the sale or lease.
(d) Participation of Certain Airports.— 

(1) General aviation airports.— 
If the Secretary approves under subsection (b) applications with respect to 5 airports, one of the airports must be a general aviation airport.
(2) Large hub airports.— 
The Secretary may not approve under subsection (b) more than 1 application submitted by an airport that had 1 percent or more of the total passenger boardings (as defined in section 47102) in the United States in the preceding calendar year.
(e) Required Finding That Approval Will Not Result in Unfair Methods of Competition.— 
The Secretary may approve an application under subsection (b) only if the Secretary finds that the approval will not result in unfair and deceptive practices or unfair methods of competition.
(f) Interests of General Aviation Users.— 
In approving an application of an airport under this section, the Secretary shall ensure that the interests of general aviation users of the airport are not adversely affected.
(g) Passenger Facility Fees; Apportionments; Service Charges.— 
Notwithstanding that the sponsor of an airport receiving an exemption under subsection (b) is not a public agency, the sponsor shall not be prohibited from
(1) imposing a passenger facility fee under section 40117 of this title;
(2) receiving apportionments under section 47114 of this title; or
(3) collecting reasonable rental charges, landing fees, and other service charges from aircraft operators under section 40116 (e)(2) of this title.
(h) Effectiveness of Exemptions.— 
An exemption granted under subsection (b) shall continue in effect only so long as the facilities sold or leased continue to be used for airport purposes.
(i) Revocation of Exemptions.— 
The Secretary may revoke an exemption issued to a purchaser or lessee of an airport under subsection (b)(3) if, after providing the purchaser or lessee with notice and an opportunity to be heard, the Secretary determines that the purchaser or lessee has knowingly violated any of the terms specified in subsection (c) for the sale or lease of the airport.
(j) Nonapplication of Provisions to Airports Owned by Public Agencies.— 
The provisions of this section requiring the approval of air carriers in determinations concerning the use of revenues, and imposition of fees, at an airport shall not be extended so as to apply to any airport owned by a public agency that is not participating in the program established by this section.
(k) Audits.— 
The Secretary may conduct periodic audits of the financial records and operations of an airport receiving an exemption under this section.
(l) Report.— 
Not later than 2 years after the date of the initial approval of an application under this section, the Secretary shall transmit to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate a report on implementation of the program under this section.
(m) General Aviation Airport Defined.— 
In this section, the term general aviation airport means an airport that is not a commercial service airport.

49 USC 47135 - Innovative financing techniques

(a) In General.— 
The Secretary of Transportation may approve, after the date of enactment of the Vision 100Century of Aviation Reauthorization Act, applications for not more than 20 airport development projects for which grants received under this subchapter may be used for innovative financing techniques. Such projects shall be located at airports that each year have less than .25 percent of the total number of passenger boardings each year at all commercial service airports in the most recent calendar year for which data is available.
(b) Purpose.— 
The purpose of grants made under this section shall be to provide information on the benefits and difficulties of using innovative financing techniques for airport development projects.
(c) Limitations.— 

(1) No guarantees.— 
In no case shall the implementation of an innovative financing technique under this section be used in a manner giving rise to a direct or indirect guarantee of any airport debt instrument by the United States Government.
(2) Types of techniques.— 
In this section, innovative financing techniques are limited to
(A) payment of interest;
(B) commercial bond insurance and other credit enhancement associated with airport bonds for eligible airport development;
(C) flexible non-Federal matching requirements; and
(D) use of funds apportioned under section 47114 for the payment of principal and interest of terminal development for costs incurred before the date of the enactment of this section.

49 USC 47136 - Inherently low-emission airport vehicle pilot program

(a) In General.— 
The Secretary of Transportation shall carry out a pilot program at not more than 10 public-use airports under which the sponsors of such airports may use funds made available under section 48103 for use at such airports to carry out inherently low-emission vehicle activities. Notwithstanding any other provision of this subchapter, inherently low-emission vehicle activities shall for purposes of the pilot program be treated as eligible for assistance under this subchapter.
(b) Location in Air Quality Nonattainment Areas.— 

(1) In general.— 
A public-use airport shall be eligible for participation in the pilot program only if the airport is located in an air quality nonattainment area (as defined in section 171(2) of the Clean Air Act (42 U.S.C. 7501 (2)).
(2) Shortage of candidates.— 
If the Secretary receives an insufficient number of applications from public-use airports located in such areas, then the Secretary may consider applications from public-use airports that are not located in such areas.
(c) Selection Criteria.— 
In selecting from among applicants for participation in the pilot program, the Secretary shall give priority consideration to applicants that will achieve the greatest air quality benefits measured by the amount of emissions reduced per dollar of funds expended under the pilot program.
(d) United States Government’s Share.— 
Notwithstanding any other provision of this subchapter, the United States Governments share of the costs of a project carried out under the pilot program shall be 50 percent.
(e) Maximum Amount.— 
Not more than $2,000,000 may be expended under the pilot program at any single public-use airport.
(f) Technical Assistance.— 

(1) In general.— 
The sponsor of a public-use airport carrying out inherently low-emission vehicle activities under the pilot program may use not more than 10 percent of the amounts made available for expenditure at the airport in a fiscal year under the pilot program to receive technical assistance in carrying out such activities.
(2) Eligible consortium.— 
To the maximum extent practicable, participants in the pilot program shall use an eligible consortium (as defined in section 55061 of this title) in the region of the airport to receive technical assistance described in paragraph (1).
(g) Materials Identifying Best Practices.— 
The Administrator may develop and make available materials identifying best practices for carrying out low-emission vehicle activities based on the projects carried out under the pilot program and other sources.
(h) Report to Congress.— 
Not later than 18 months after the date of the enactment of this section, the Secretary shall transmit to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate a report containing
(1) an evaluation of the effectiveness of the pilot program;
(2) an identification of other public-use airports that expressed an interest in participating in the pilot program; and
(3) a description of the mechanisms used by the Secretary to ensure that the information and know-how gained by participants in the pilot program is transferred among the participants and to other interested parties, including other public-use airports.
(i) Inherently Low-Emission Vehicle Activity Defined.— 
In this section, the term inherently low-emission vehicle activity means
(1) the construction of infrastructure or modifications at public-use airports to enable the delivery of fuel and services necessary for the use of vehicles that are certified as inherently low-emission vehicles under title 40 of the Code of Federal Regulations and that
(A) operate exclusively on compressed natural gas, liquefied natural gas, liquefied petroleum gas, electricity, hydrogen, or a blend at least 85 percent of which is methanol;
(B) are labeled in accordance with section 88.31293(c) of such title; and
(C) are located or primarily used at public-use airports;
(2) the construction of infrastructure or modifications at public-use airports to enable the delivery of fuel and services necessary for the use of nonroad vehicles that
(A) operate exclusively on compressed natural gas, liquefied natural gas, liquefied petroleum gas, electricity, hydrogen, or a blend at least 85 percent of which is methanol;
(B) meet or exceed the standards set forth in section 86.170899 of such title or the standards set forth in section 89.112(a) of such title, and are in compliance with the requirements of section 89.112(b) of such title; and
(C) are located or primarily used at public-use airports;
(3) the payment of that portion of the cost of acquiring vehicles described in this subsection that exceeds the cost of acquiring other vehicles or engines that would be used for the same purpose; or
(4) the acquisition of technological capital equipment to enable the delivery of fuel and services necessary for the use of vehicles described in paragraph (1).
[1] See References in text note below.

49 USC 47137 - Airport security program

(a) General Authority.— 
To improve security at public airports in the United States, the Secretary of Transportation shall carry out not less than one project to test and evaluate innovative aviation security systems and related technology.
(b) Priority.— 
In carrying out this section, the Secretary shall give the highest priority to a request from an eligible sponsor for a grant to undertake a project that
(1) evaluates and tests the benefits of innovative aviation security systems or related technology, including explosives detection systems, for the purpose of improving aviation and aircraft physical security, access control, and passenger and baggage screening; and
(2) provides testing and evaluation of airport security systems and technology in an operational, testbed environment.
(c) Matching Share.— 
Notwithstanding section 47109, the United States Governments share of allowable project costs for a project under this section shall be 100 percent.
(d) Terms and Conditions.— 
The Secretary may establish such terms and conditions as the Secretary determines appropriate for carrying out a project under this section, including terms and conditions relating to the form and content of a proposal for a project, project assurances, and schedule of payments.
(e) Administration.— 
The Secretary, in cooperation with the Secretary of Homeland Security, shall administer the program authorized by this section.
(f) Eligible Sponsor Defined.— 
In this section, the term eligible sponsor means a nonprofit">nonprofit corporation composed of a consortium of public and private persons, including a sponsor of a primary airport, with the necessary engineering and technical expertise to successfully conduct the testing and evaluation of airport and aircraft related security systems.
(g) Authorization of Appropriations.— 
Of the amounts made available to the Secretary under section 47115 in a fiscal year, the Secretary shall make available not less than $5,000,000 for the purpose of carrying out this section.

49 USC 47138 - Pilot program for purchase of airport development rights

(a) In General.— 
The Secretary of Transportation shall establish a pilot program to support the purchase, by a State or political subdivision of a State, of development rights associated with, or directly affecting the use of, privately owned public use airports located in that State. Under the program, the Secretary may make a grant to a State or political subdivision of a State from funds apportioned under section 47114 for the purchase of such rights.
(b) Grant Requirements.— 

(1) In general.— 
The Secretary may not make a grant under subsection (a) unless the grant is made
(A) to enable the State or political subdivision to purchase development rights in order to ensure that the airport property will continue to be available for use as a public airport; and
(B) subject to a requirement that the State or political subdivision acquire an easement or other appropriate covenant requiring that the airport shall remain a public use airport in perpetuity.
(2) Matching requirement.— 
The amount of a grant under the program may not exceed 90 percent of the costs of acquiring the development rights.
(c) Grant Standards.— 
The Secretary shall prescribe standards for grants under subsection (a), including
(1) grant application and approval procedures; and
(2) requirements for the content of the instrument recording the purchase of the development rights.
(d) Release of Purchased Rights and Covenant.— 
Any development rights purchased under the program shall remain the property of the State or political subdivision unless the Secretary approves the transfer or disposal of the development rights after making a determination that the transfer or disposal of that right is in the public interest.
(e) Limitation.— 
The Secretary may not make a grant under the pilot program for the purchase of development rights at more than 10 airports.

49 USC 47139 - Emission credits for air quality projects

(a) In General.— 
The Administrator of the Environmental Protection Agency, in consultation with the Secretary of Transportation, shall issue guidance on how to ensure that airport sponsors receive appropriate emission reduction credits for carrying out projects described in sections 40117 (a)(3)(G), 47102 (3)(F), 47102 (3)(K), and 47102 (3)(L). Such guidance shall include, at a minimum, the following conditions:
(1) The provision of credits is consistent with the Clean Air Act (42 U.S.C. 7402 et seq.).
(2) Credits generated by the emissions reductions are kept by the airport sponsor and may only be used for purposes of any current or future general conformity determination under the Clean Air Act or as offsets under the Environmental Protection Agencys new source review program for projects on the airport or associated with the airport.
(3) Credits are calculated and provided to airports on a consistent basis nationwide.
(4) Credits are provided to airport sponsors in a timely manner.
(5) The establishment of a method to assure the Secretary that, for any specific airport project for which funding is being requested, the appropriate credits will be granted.
(b) Assurance of Receipt of Credits.— 
As a condition for making a grant for a project described in section 47102 (3)(F), 47102 (3)(K), 47102 (3)(L), or 47140 or as a condition for granting approval to collect or use a passenger facility fee for a project described in section 40117 (a)(3)(G), 47103 (3)(F), 47102 (3)(K), 47102 (3)(L), or 47140, the Secretary must receive assurance from the State in which the project is located, or from the Administrator of the Environmental Protection Agency where there is a Federal implementation plan, that the airport sponsor will receive appropriate emission credits in accordance with the conditions of this section.
(c) Previously Approved Projects.— 
The Administrator of the Environmental Protection Agency, in consultation with the Secretary, shall determine how to provide appropriate emissions credits to airport projects previously approved under section 47136 consistent with the guidance and conditions specified in subsection (a).
(d) State Authority Under CAA.— 
Nothing in this section shall be construed as overriding existing State law or regulation pursuant to section 116 of the Clean Air Act (42 U.S.C. 7416).

49 USC 47140 - Airport ground support equipment emissions retrofit pilot program

(a) In General.— 
The Secretary of Transportation shall carry out a pilot program at not more than 10 commercial service airports under which the sponsors of such airports may use an amount made available under section 48103 to retrofit existing eligible airport ground support equipment that burns conventional fuels to achieve lower emissions utilizing emission control technologies certified or verified by the Environmental Protection Agency.
(b) Location in Air Quality Nonattainment or Maintenance Areas.— 
A commercial service airport shall be eligible for participation in the pilot program only if the airport is located in an air quality nonattainment area (as defined in section 171(2) of the Clean Air Act (42 U.S.C. 7501 (2))) or a maintenance area referred to in section 175A of such Act (42 U.S.C. 7505a).
(c) Selection Criteria.— 
In selecting from among applicants for participation in the pilot program, the Secretary shall give priority consideration to applicants that will achieve the greatest air quality benefits measured by the amount of emissions reduced per dollar of funds expended under the pilot program.
(d) Maximum Amount.— 
Not more than $500,000 may be expended under the pilot program at any single commercial service airport.
(e) Guidelines.— 
The Secretary, in consultation with the Administrator of the Environmental Protection Agency, shall establish guidelines regarding the types of retrofit projects eligible under the pilot program by considering remaining equipment useful life, amounts of emission reduction in relation to the cost of projects, and other factors necessary to carry out this section. The Secretary may give priority to ground support equipment owned by the airport and used for airport purposes.
(f) Eligible Equipment Defined.— 
In this section, the term eligible equipment means ground service or maintenance equipment that is located at the airport, is used to support aeronautical and related activities at the airport, and will remain in operation at the airport for the life or useful life of the equipment, whichever is earlier.

49 USC 47141 - Compatible land use planning and projects by State and local governments

(a) In General.— 
The Secretary of Transportation may make grants, from amounts set aside under section 47117 (e)(1)(A), to States and units of local government for development and implementation of land use compatibility plans and implementation of land use compatibility projects resulting from those plans for the purposes of making the use of land areas around large hub airports and medium hub airports compatible with aircraft operations. The Secretary may make a grant under this section for a land use compatibility plan or a project resulting from such plan only if
(1) the airport operator has not submitted a noise compatibility program to the Secretary under section 47504 or has not updated such program within the preceding 10 years; and
(2) the land use plan or project meets the requirements of this section.
(b) Eligibility.— 
In order to receive a grant under this section, a State or unit of local government must
(1) have the authority to plan and adopt land use control measures, including zoning, in the planning area in and around a large or medium hub airport;
(2) enter into an agreement with the airport owner or operator that the development of the land use compatibility plan will be done cooperatively; and
(3) provide written assurance to the Secretary that it will achieve, to the maximum extent possible, compatible land uses consistent with Federal land use compatibility criteria under section 47502 (3) and that those compatible land uses will be maintained.
(c) Assurances.— 
The Secretary shall require a State or unit of local government to which a grant may be made under this section for a land use plan or a project resulting from such plan to provide
(1) assurances satisfactory to the Secretary that the plan
(A) is reasonably consistent with the goal of reducing existing noncompatible land uses and preventing the introduction of additional noncompatible land uses;
(B) addresses ways to achieve and maintain compatible land uses, including zoning, building codes, and any other land use compatibility measures under section 47504 (a)(2) that are within the authority of the State or unit of local government to implement;
(C) uses noise contours provided by the airport operator that are consistent with the airport operation and planning, including any noise abatement measures adopted by the airport operator as part of its own noise mitigation efforts;
(D) does not duplicate, and is not inconsistent with, the airport operators noise compatibility measures for the same area; and
(E) has been approved jointly by the airport owner or operator and the State or unit of local government; and
(2) such other assurances as the Secretary determines to be necessary to carry out this section.
(d) Guidelines.— 
The Secretary shall establish guidelines to administer this section in accordance with the purposes and conditions described in this section. The Secretary may require a State or unit of local government to which a grant may be made under this section to provide progress reports and other information as the Secretary determines to be necessary to carry out this section.
(e) Eligible Projects.— 
The Secretary may approve a grant under this section to a State or unit of local government for a project resulting from a land use compatibility plan only if the Secretary is satisfied that the project is consistent with the guidelines established by the Secretary under this section, the State or unit of local government has provided the assurances required by this section, the State or unit of local government has implemented (or has made provision to implement) those elements of the plan that are not eligible for Federal financial assistance, and that the project is not inconsistent with applicable Federal Aviation Administration standards.
(f) Sunset.— 
This section shall not be in effect after September 30, 2007.

49 USC 47142 - Design-build contracting

(a) In General.— 
The Administrator of the Federal Aviation Administration may approve an application of an airport sponsor under this section to authorize the airport sponsor to award a design-build contract using a selection process permitted under applicable State or local law if
(1) the Administrator approves the application using criteria established by the Administrator;
(2) the design-build contract is in a form that is approved by the Administrator;
(3) the Administrator is satisfied that the contract will be executed pursuant to competitive procedures and contains a schematic design adequate for the Administrator to approve the grant;
(4) use of a design-build contract will be cost effective and expedite the project;
(5) the Administrator is satisfied that there will be no conflict of interest; and
(6) the Administrator is satisfied that the selection process will be as open, fair, and objective as the competitive bid system and that at least 3 or more bids will be submitted for each project under the selection process.
(b) Reimbursement of Costs.— 
The Administrator may reimburse an airport sponsor for design and construction costs incurred before a grant is made pursuant to this section if the project is approved by the Administrator in advance and is carried out in accordance with all administrative and statutory requirements that would have been applicable under this chapter if the project were carried out after a grant agreement had been executed.
(c) Design-Build Contract Defined.— 
In this section, the term design-build contract means an agreement that provides for both design and construction of a project by a contractor.