(9) Reports. 



the airport operator or owner will submit to the 

 Secretary such annual or special airport financial 

 and operations reports as the Secretary may reason- 

 ably request; and 



(10) Inspection of records. 



the airport and all airport records wiil be available 

 for inspection by any duly authorized agent of the 

 Secretaiy uopn reasonable request. 

 To Insure compliance with this section, the Secretary 

 shall prescribe such project sponsorship require- 

 ments, consistent with tlic terms of tins subchapter, 

 as he considers necessary. Among other .-iteps to in- 

 sure such compliance the Secretary is auiiuirized to 

 enter into contracts witli public aRcncits. 0:1 belialf 

 of the United States. Whenever the Secretary obtains 

 from ft sponsor any area of land or water, or estate 

 therein, or rights in buildings of the sponsor and 

 constructs space or facilities thereon at Federal 

 expense, lie Is authorized to relieve the sponsor from 

 any contractual obligation entered into under this 

 subchapter or the Federal Airport Act to provide free 

 space in airport buildings to the Federal Government 

 to the extent he find.s that space no longer required 

 for the purposes set forth in paiapraph (6) of this 

 section. 



(b) Consultation. 



In making a decision to undertake any project 

 under this title, any sponsor of an air carrier air- 

 port shall consult with air carriers using the airport 

 at which such airport development project is pro- 

 posed and any sponsor of a general aviation airport 

 shall consult with fixpd-base operators using the 

 airport at which such airport development project 

 is proposed. (Pub. L. 91-258, title I, § 18, May 21, 

 1970, 84 Stat. 229; amended Pub. L. 94-353, § 10. 

 July 12, 1976, 90 Stat. 878.) 



Amendments 



1976 — Subsec. (a) . Pub. L. 94-353 added the final 

 clauses to paragraphs (1) and (8) and placed the ten 

 paragraphs under the side heading "(a) Sponsorship." 



Subsec. (b). Pub. L. 94-353 added subsec. (b). 



§1719. Grant acroomcntB; offer of terms and condi- 

 tions; accrplance. 

 Upon approving a project application for airport 

 development, the Secretary, on behalf of the United 

 States, shall transmit to the sponsor or sponsors of 

 the project application an offer to make a grant for 

 the United States share of allowable project costs. 

 An offer shall be made upon such terms and condi- 

 tions as the Secretary considers necessary to meet 

 the requirements of this subchapter and the regula- 

 tions prescribed thereunder. Each offer shall state a 

 definite amount as the maximum obligation of the 

 United States payable from funds authorized by this 

 subchapter, and shall stipulate the obligations to be 

 assumed by the sponsor or sponsors. In any case 

 where the Secretary approves an application for a 

 project which will not be completed in one fiscal 

 year, the offer shall, upon request of the sponsor, 

 provide for the obligation of funds apportioned or 

 to be apportioned to the sponsor pursuant to sec- 



tin 1715(a) (3) (A) of this title for such fiscal years 

 (including future fiscal years) as may be neces- 

 sary to pay the United States share of the cost of 

 such project. If and when an offer is accepted in 

 writing by the sponsor, the offer and acceptance 

 shall comprise an agreement constituting an obli- 

 gation of the United States and of the sponsor. 

 Thereafter, the amount stated in the accepted 

 offer as the maximum obligation of the United 

 States may not be increased by more than 10 per 

 centum. Unless and until an agreement has been 

 executed, the United States may not pay, nor be 

 obligated to pay, any portion of the costs which have 

 been or may be incurred. (Pub. L. 91-258, title I, § 19, 

 May 21, 1970, 84 Stat. 230; amended Pub. L. 94- 

 353, § 11, July 12, 1976, 90 Stat. 879.) 



Amendments 

 1976 — Pub. L. 94-353 added the fourth sentence. 



§ 1720. Project costs. 



(a) Allowable jiroject costs; regulation.s. 



Except as provided in section 1721 of this title, 

 the United States may not pay, or be obli- 

 gated to pay, from amounts appropriated to carry 

 out the provisions of this subchapter, any portion of 

 a project cost incurred in carrying out a project for 

 airport development unless the Secretary has first 

 determined that the cost is allowable. A project cost 

 is allowable if — 



(1) it was a necessary cost incurred in accom- 

 plishing airport development in conformity with 

 approved plans and specifications for an approved 

 airport development project and with the terms 

 and conditions of the grant agreement entered into 

 in connection with the project; 



(2) it was incurred subsequent to the execution 

 of the grant agreement with respect to the project, 

 and in connection with airport development ac- 

 complished under the project after the execution 

 of the agreement. However, the allowable costs of 

 a pioject may include any necessary costs of 

 formulating the project (including the costs of 

 field surveys and the preparation of plans and 

 specifications, the acquisition of land or interests 

 therein or casements through or other interests 

 in airspace, and any necessary administrative or 

 other Incidental costs incurred by the sponsor 

 specifically in connection with tlie accomplishment 

 of the project for airport development, which 

 would not have been incurred otherwise) which 

 were incurred subsequent to May 13, 1946; 



(3) in the opinion of the Secretary it is reason- 

 able in amount, and if the Secretary determines 

 that a project cost is unreasonable in amount, he 

 may allow as an allowable project cost only so 

 much of such project cost as he determines to be 

 reasonable: except that in no event may he allow 

 project costs in excess of the definite amount 

 stated in the grant agreement; and 



(4 1 it has not been included in any project 

 authorized under section 1713 of this title. 

 The Secretary is authorized to prescribe such regu- 



