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APPENDIX 3. Secretary of Labor Regulations (29 C.F.R.).

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CHAPTER 1. PROGRAM OBJECTIVE AND FUNDS

SECTION 1. PURPOSE AND BACKGROUND OF PROGRAM

1.

2.

3.

4.

5.

PURPOSE.

This handbook sets forth the policies, procedures and guidelines for administering the Federal-aid Airport Program. This program has been established by the FAA to carry out the provisions of Section 4 (a) of the Federal Airport Act (49 U.S.C. 1101) - i.e., to make grants of funds to sponsors for airport development to bring about, in conformity with the National Airport Plan, the establishment of a nationwide system of public airports adequate to meet the present and future needs of civil aeronautics.

BACKGROUND.

Sections 5, 6 and 7 of the Federal Airport Act cover appropriations and funds. The Act was amended by P.L. 84-211, to grant contract authority for the Fiscal Years 1956 through 1959 which was extended by P.L. 86-72 through Fiscal Year 1961. P.L. 87-255, approved September 20, 1961, amended the Act to authorize appropriations for each of three fiscal years beginning with the year ending June 30, 1962, P.L. 88-280 approved March 11, 1964, amended the Act to authorize appropriations for each of three fiscal years beginning with the year ending June 30, 1965.

There are no regulations specifically covering these sections of the Act and this chapter sets forth policies and procedures in connection with appropriations, contract authorization, and funds. For all practical purposes, appropriations (other than administrative) will be treated in the same manner as contract authority and will not be dealt with separately in this chapter.

CONTRACT AUTHORITY. Contract authority is the authority to obligate funds by the execution of Grant Agreements prior to the time such fuds are appropriated by the Congress.

ADMINISTRATIVE EXPENSES. Section 5(e) of the Act covers administrative expenses of the Federal Aviation Agency, itself, relative to administration of the Federal Airport Act. As used herein, Section 5(e) includes expenses of the character specified in Section 303 of the Federal Aviation Act of 1958 (72 Stat. 731).

8. RESERVED.

SECTION 2. PROGRAM FUNDS

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9. GENERAL. Since contract authorization is essentially the same as available funds or appropriations, it will be referred to herein as either contract authority or funds. The funds authorized by the Congress for obligation under the Act shall be distributed in the manner set out in Paragraphs 10 through 14.

10.

FUNDS AUTHORIZED PRIOR TO P.L. 07-255. Section 5(a) of the Act provides
for continental U. S. contract authority in the amount of $40 million for
the Fiscal Year ending June 30, 1956, and for continental U. S. contract
authority in the amount of $60 million for each of the Fiscal Years
ending June 30, 1957, June 30, 1958, June 30, 1959, June 30, 1960, and
June 30, 1961.

Section 5(b) of the Act provides contract authority for projects outside
the continental United States in the amount of $2,500,000 for the Fiscal
Year ending June 30, 1956, and in the amount of $3,000,000 for each of
the Fiscal Years 1957 through 1961. These amounts are divided as follows:
45 per cent for projects in Alaska, 25 per cent for projects in Hawaii,
20 per cent for projects in Puerto Rico and 10 per cent for projects in
the Virgin Islands.

These authorizations remain available until obligated. Funds appropriated to liquidate these obligations remain available until expended.

11. FUNDS AUTHORIZED BY P.L. 87-255 AND P.L. 88-280. Funds authorized by these laws are distributed as follows:

a.

b.

C.

Sections 5(a)(1) and 5(a)(4) Funds. These sections of the amended Act authorize appropriations of $66,500,000 for each fiscal year for projects in the fifty states.

Sections 5(a)(2) and 5(a)(5) Funds. These sections authorize appropriations in addition to the amounts authorized by Sections 5(a)(1), 5(a)(3), 5(a)(4) and 5(a)(6), of $1,500,000 for each fiscal year for projects in Hawaii, Puerto Rico and the Virgin Islands. Funds authorized under these sections are divided as follows: 40 per cent for Hawaii, 40 per cent for Puerto Rico and 20 per cent for the Virgin Islands.

Sections 5(a)(3) and 5(a)(6) Funds. These sections authorize appropriations of $7,000,000 for each of the fiscal years for the purpose of developing in the several states, airports the primary purpose

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of which is to serve general aviation and to relieve congestion at
airports having a high density of traffic serving other segments of
aviation. P. L. 88-280 further amends the Act to establish a
program of advance planning and engineering proposals as part of
the Federal-aid Airport Program. Appropriations may, under author-
ization by public laws up to and including P. L. 88-280, be used
for advance planning and engineering grants as well as grants for
construction projects.

The appropriations made under Section 5(d) will remain available until expended.

STATE APPORTIONMENT FUNDS. As soon as possible after July 1 of each
fiscal year for which any amount is authorized to be obligated by
Section 5(a), 5(a)(1) or 5(a)(4) of the Act, 75 per cent of the amount
made available for that year will be apportioned among the several
states on the basis of a population/area formula - i.e., one-half of the
75 per cent will be apportioned according to the proportion which the
population of each state bears to the total population of all states
and the other half in the proportion the area of each state bears to
the total area of all the states. Funds so apportioned will remain
available only for grants for approved projects or advance planning
proposals located in that state or sponsored by that state or some other
public agency thereof but located in an adjoining state.
The appor-
tioned funds will remain available for obligation in that state during
the fiscal year for which they were first authorized to be obligated
and the fiscal year immediately following. Any State Apportionment
Funds remaining unobligated at the end of the two fiscal years for which
they were apportioned will be added to the Regular Discretionary Fund
(see Paragraph 13).

a.

b.

C.

Programming and Obligating Apportioned Funds. In programming, State
apportioned funds will be fully utilized before any development
will be programmed from Regular Discretionary Funds. The same
rule will be observed in obligating funds by Grant Agreement.
Notification. The Administrator will notify the executive head of
each state, and any public agency which has requested such informa-
tion, of the amounts apportioned for projects in each state.

Use. The funds apportioned for projects or advance planning
proposals in each state are available for projects sponsored by
eligible public agencies within the state and located in that
state or in adjacent states, but are not available for grants
to Federal agencies when such projects or advance planning
proposals are located in a national forest, a national park,
national recreational area, national monument, or a

d.

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special reservation for Government purposes. State Apportionment
Funds may be used, however, for grants to Federal agencies when such
projects or advance planning proposals are located outside a
national park, national recreational area, or a national monument.
Where a grant is made to two or more public agencies located in
different states, the Federal funds shall be charged against the
states in direct proportion to the amounts contributed by the
sponsors in each state.

Projects or advance planning proposals located in national parks, national recreation areas, national monuments, national forests, or a special reservation for Government purposes, and sponsored by a non-Federal public agency, may be financed from the State Apportionment Funds of the State.

Redistribution. Prior to the passage of P. L. 87-255, State
Apportionment Funds which had not been obligated at the end of the
fiscal year following the year for which the funds were authorized
were redistributed and reapportioned in accordance with the require-
ments governing the distribution and apportionment of newly author-
ized funds. However, P. L. 87-255 amended the Act to provide that
such funds remaining unobligated at the expiration of the two fiscal
years for which they were authorized shall be added to the Regular
Discretionary Fund (see Paragraph 13). P. L. 88-280 continues this
provision. Therefore, any amount apportioned under authority of
P. L. 87-255 or P. L. 88-280 which has not been obligated during the
fiscal year for which it was first authorized or the fiscal year
immediately following, is added to the Regular Discretionary Fund.

13. REGULAR DISCRETIONARY FUNDS. The remaining 25 per cent of the funds authorized by Sections 5(a), 5(d)(1) and 5(d) (4) of the Act constitutes a Discretionary Fund which is available, as the Administrator may deem most appropriate for carrying out the National Airport Plan, for projects in the several states, Puerto Rico, the Virgin Islands and Guam. The same rules for the use of State Apportionment Funds (see Paragraph 12c) apply to the use of Regular Discretionary Funds except that the latter are also available for projects sponsored by Federal agencies regardless of whether such projects are located in a national recreation area, national park, national monument, national forest or special reservation for Government purposes.

14. GENERAL AVIATION DISCRETIONARY FUNDS.

a.

General. Sections 5(d)(3) and 5(d)(6) of the Act, as amended, authorize $7,000,000 to be appropriated for each of the fiscal years ending June 30, 1962, 1963, 1964, 1965, 1966 and 1967, for the purpose of developing airports, the primary purpose of which is to

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