PART 156--STATE BLOCK GRANT PILOT PROGRAM
  
  Sec.
  156.1  Applicability.
  156.2  Letters of interest.
  156.3  Application and grant process.
  156.4  Airport and project eligibility.
  156.5  Project cost allowability.
  156.6  State program responsibilities.
  156.7  Enforcement of State block grant agreements and other related grant
      assurances.
  
    Authority: 49 U.S.C. App. 2201 (as amended, 49 U.S.C. App. 2227, Airport
  and Airway Safety and Capacity Expansion Act of 1987); 49 CFR 1.47 (f) and
  (k) (Regulations of the Office of the Secretary of Transportation).
  
    Source: Docket No. 35723, 53 FR 41303, Oct. 20, 1988, unless otherwise
  noted.
   
  Sec. 156.1  Applicability.
  
    (a) This part applies to grant applicants for the State block grant pilot
  program and to those States receiving block grants available under the
  Airport and Airway Improvement Act of 1982, as amended.
    (b) This part sets forth--
    (1) The procedures by which a State may apply to participate in the State
  block grant pilot program;
    (2) The program administration requirements for a participating State;
    (3) The program responsibilities for a participating State; and
    (4) The enforcement responsibilities of a participating State.   

  Sec. 156.2  Letters of interest.
  
    (a) Any state that desires to participate in the State block grant pilot
  program shall submit a letter of interest, by November 30, 1988, to the
  Associate Administrator for Airports, Federal Aviation Administration, 800
  Independence Avenue SW., Room 1000E, Washington, DC 20591.
    (b) A State's letter of interest shall contain the name, title, address,
  and telephone number of the individual who will serve as the liaison with the
  Administrator regarding the State block grant pilot program.
    (c) The FAA will provide an application form and program guidance material
  to each State that submits a letter of interest to the Associate
  Administrator for Airports.   

  Sec. 156.3  Application and grant process.
  
    (a) A State desiring to participate shall submit a completed application to
  the Associate Administrator for Airports.
    (b) After review of the applications submitted by the States, the
  Administrator shall select three States for participation in the State block
  grant pilot program.
    (c) The Administrator shall issue a written grant offer that sets forth the
  terms and conditions of the State block grant agreement to each selected
  State.
    (d) A State's participation in the State block grant pilot program begins
  when a State accepts the Administrator's written grant offer in writing and
  within any time limit specified by the Administrator. The State shall
  certify, in its written acceptance, that the acceptance complies with all
  applicable Federal and State law, that the acceptance constitutes a legal and
  binding obligation of the State, and that the State has the authority to
  carry out all the terms and conditions of the written grant offer.   

  Sec. 156.4  Airport and project eligibility.
  
    (a) A participating State shall use monies distributed pursuant to a State
  block grant agreement for airport development and airport planning, for
  airport noise compatibility planning, or to carry out airport noise
  compatibility programs, in accordance with the Airport and Airway Improvement
  Act of 1982, as amended.
    (b) A participating State shall administer the airport development and
  airport planning projects for airports within the State.
    (c) A participating State shall not use any monies distributed pursuant to
  a State block grant agreement for integrated airport system planning,
  projects related to any primary airport, or any airports--
    (1) Outside the State's boundaries; or
    (2) Inside the State's boundaries that are not included in the National
  Plan of Integrated Airport Systems.   

  Sec. 156.5  Project cost allowability.
  
    (a) A participating State shall not use State block grant funds for
  reimbursement of project costs that would not be eligible for reimbursement
  under a project grant administered by the FAA.
    (b) A participating State shall not use State block grant funds for
  reimbursement or funding of administrative costs incurred by the State
  pursuant to the State block grant program.   

  Sec. 156.6  State program responsibilities.
  
    (a) A participating State shall comply with the terms of the State block
  grant agreement.
    (b) A participating State shall ensure that each person or entity, to which
  the State distributes funds received pursuant to the State block grant pilot
  program, complies with any terms that the State block grant agreement
  requires to be imposed on a recipient for airport projects funded pursuant to
  the State block grant pilot program.
    (c) Unless otherwise agreed by a participating State and the Administrator
  in writing, a participating State shall not delegate or relinquish, either
  expressly or by implication, any State authority, rights, or power that would
  interfere with the State's ability to comply with the terms of a State block
  grant agreement.   

  Sec. 156.7  Enforcement of State block grant agreements and other related
      grant assurances.
  
    The Administrator may take any action, pursuant to the authority of the
  Airport and Airway Imrovement Act of 1982, as amended, to enforce the terms
  of a State block grant agreement including any terms imposed upon subsequent
  recipients of State block agreement funds.