§47108 — Title 49 Transportation | U.S. Code

Summary

When the Secretary of Transportation approves a project grant, the Secretary must offer the airport sponsor a grant to pay the federal share of the project costs allowed under section 47110. The offer can include rules the Secretary thinks are needed. The offer must say what the sponsor must do and the maximum the Government will pay using funds authorized under chapter 481 (except sections 48102(e), 48106, 48107, and 48110). If the sponsor asks, the offer can promise to obligate amounts apportioned under section 47114(c) or 47114(d)(2)(A) over the fiscal years needed for a multiyear project. The sponsor must accept the offer in writing for it to become a binding agreement, and the Government can pay or agree to pay only after the grant agreement is signed. The maximum amount the Government will pay usually cannot be increased after the sponsor accepts, except limited increases: up to 15% for airport development projects, and for buying land for an airport (not a primary airport) by the greater of 15% or 25% of the cost increase tied to land purchase. The Secretary may add a contract clause to pay more if commodity or labor prices rise, but must also get any savings if costs fall. With the sponsor’s OK, the Secretary may change the project work if that change does not raise the Government’s maximum payment. If an airport’s status changes during an unfinished multiyear or phased terminal project, the project can keep its eligibility for discretionary or small airport funds under the rules and time limits described in the grant or statute, subject to available funds.

Title 49, §47108

Transportation — Source: USLM XML via OLRC

(a)On approving a project grant application under this subchapter, the Secretary of Transportation shall offer the sponsor a grant to pay the United States Government’s 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 section 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)(2)(A) for the fiscal years necessary to pay the Government’s share of the cost of the project. An offer that is accepted in writing by the sponsor is an agreement binding on the Government and the sponsor. The Government may pay or be obligated to pay a project cost only after a grant agreement for the project is signed.

(b)(1)Except as provided in paragraph (2) or (3), the amount stated in an offer as the maximum amount the Government will pay may not be increased when the offer has been accepted in writing.

(2)For a project receiving assistance under a grant approved under this chapter or chapter 475, the amount may be increased—

(A)for an airport development project, by not more than 15 percent; and

(B)to acquire an interest in land for an airport (except a primary airport), based on creditable appraisals at the time of the acquisition or a court award in a condemnation proceeding, by not more than the greater of—

(i)15 percent; or

(ii)25 percent of the total increase in allowable project costs attributable to acquiring an interest in land.

(3)(A)The Secretary may incorporate a provision in a project grant agreement under which the Secretary agrees to pay more than the maximum amount otherwise specified in the agreement if the Secretary finds that commodity or labor prices have increased since the agreement was made.

(B)A provision incorporated in a project grant agreement under this paragraph shall ensure that the Secretary realizes any financial benefit associated with a decrease in material or labor costs for the project.

(c)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.

(d)(1)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)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)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 47119(a), 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 47119(a). 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.

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 47108(a)49 App.:2211(a).Sept. 3, 1982, Pub. L. 97–248, § 512(a), 96 Stat. 688; Dec. 30, 1987, Pub. L. 100–223, §§ 106(b)(4), 110(c), 101 Stat. 1498, 1502. 47108(b)49 App.:2211(b).Sept. 3, 1982, Pub. L. 97–248, § 512(b), 96 Stat. 688; restated Dec. 30, 1987, Pub. L. 100–223, § 110(a), 101 Stat. 1502; Oct. 31, 1992, Pub. L. 102–581, § 109, 106 Stat. 4879. 47108(c)49 App.:2211(c). 47108(d)49 App.:2211(d).Sept. 3, 1982, Pub. L. 97–248, 96 Stat. 324, § 512(d); added Dec. 30, 1987, Pub. L. 100–223, § 110(b), 101 Stat. 1502. In subsection (a), the words “on behalf of the United States” are omitted as surplus. The words “or sponsors” are omitted because of 1:1. The words “of the application” are omitted as surplus. The words “under section 47110 of this title” are added for clarity. The words “and conditions” are omitted as being included in “terms”. The words “for the project” are added for clarity. The words “an offer of a grant for a project” are substituted for “In any case where the Secretary approves a project grant application for a project . . . the offer” to eliminate unnecessary words. The words “(including future fiscal years)” are omitted as surplus. The words “An offer that is accepted in writing by the sponsor is an agreement binding on the Government and the sponsor” are substituted for “If and when an offer is accepted in writing by the sponsor, the offer and acceptance shall comprise an agreement constituting an obligation of the United States and of the sponsor” to eliminate unnecessary words. The words “which have been or may be incurred” are omitted as surplus. In subsection (b)(1), the words “by a sponsor” are omitted as surplus. The words “amount the Government will pay” are substituted for “obligation of the United States” for clarity and consistency in this section. In subsection (b)(2), the text of 49 App.:2211(b)(2) (last sentence) is restated to apply only to 49 App.:2211(b)(2) (1st sentence) to carry out the probable intent of Congress. In subsection (b)(3)(B), the words “for fiscal year 1993 and thereafter” are omitted as unnecessary. In subsection (c), the words “Notwithstanding any other provision of law” are omitted as surplus. The words “a project receiving assistance under” are added for consistency. In subsection (d), the word “sponsor” is substituted for “grant recipient” for clarity. The words “amount the Government may pay” are substituted for “obligation of the United States authorized” for clarity and consistency in this section.

Editorial Notes

References in Text

The Airport and Airway Improvement Act of 1982, referred to in subsec. (b)(2)(A), (3), is title V of Pub. L. 97–248, Sept. 3, 1982, 96 Stat. 671, which was classified principally to chapter 31 (§ 2201 et seq.) of former Title 49, Transportation, and was substantially repealed by Pub. L. 103–272, § 7(b), July 5, 1994, 108 Stat. 1379, and reenacted by the first section thereof as this subchapter.

Amendments

2024—Subsec. (a). Pub. L. 118–63, § 707(1), substituted “47114(d)(2)(A)” for “47114(d)(3)(A) of this title”. Subsec. (b). Pub. L. 118–63, § 707(2), added subsec. (b) and struck out former subsec. (b) which allowed increasing Government’s share after an offer has been accepted in writing in certain circumstances. Subsecs. (c) to (e). Pub. L. 118–63, § 707(3), (4), redesignated subsecs. (d) and (e) as (c) and (d), respectively, and struck out former subsec. (c). Prior to amendment, text of subsec. (c) read as follows: “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.” 2012—Subsec. (e)(3). Pub. L. 112–95 substituted “accordance with section 47119(a)” for “accordance with section 47110(d)(2)” and “allowable under section 47119(a)” for “allowable under section 47110(d)”. 2005—Subsec. (e)(3). Pub. L. 109–115 added par. (3). 2003—Subsec. (a). Pub. L. 108–176 inserted “or 47114(d)(3)(A)” after “under section 47114(c)”. 2000—Subsec. (e). Pub. L. 106–181 added subsec. (e).

Statutory Notes and Related Subsidiaries

Effective Date

of 2003 AmendmentAmendment by Pub. L. 108–176 applicable only to fiscal years beginning after Sept. 30, 2003, except as otherwise specifically provided, see section 3 of Pub. L. 108–176, set out as a note under section 106 of this title.

Effective Date

of 2000 AmendmentAmendment by Pub. L. 106–181 applicable only to fiscal years beginning after Sept. 30, 1999, see section 3 of Pub. L. 106–181, set out as a note under section 106 of this title. Land Acquisition Costs Pub. L. 107–71, title I, § 143, Nov. 19, 2001, 115 Stat. 644, provided that: “In the case of a grant for land acquisition issued to an airport under chapter 471 of title 49, United States Code, prior to January 1, 1995, the Secretary of Transportation may waive the provisions of section 47108 of such title and provide an upward adjustment in the maximum obligation of the United States under that chapter to assist the airport in funding land acquisition costs (and associated eligible costs) that increased as a result of a judicial order.” [For definitions of “airport” and “United States” used in section 143 of Pub. L. 107–71, set out above, see section 133 of Pub. L. 107–71, set out as a note under section 40102 of this title.]

§47108 Project grant agreements

Summary

Title 49, §47108

Notes & Related Subsidiaries

Historical and Revision Notes

Editorial Notes

References in Text

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Citations & Metadata