PROJECT COSTS.

SEC. 20. PROJECT COSTS. (a) Allowable Project Costs.—Except as provided in section 21 of this part, the United States may not pay, or be obligated to pay, from amounts appropriated to carry out the provisions of this part, 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 accomplishing 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 accomplished under the project after the execution of the agreement. However, the allowable costs of a project 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 easements through or other interests in airspace, and any necessary administrative or other incidental costs incurred by the sponsor specifically in connection with the 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 reasonable 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 84 Stat. 231in no event may he allow project costs in excess of the definite amount stated in the grant agreement; and (4) it has not been included in any project authorized under section 13 of this part. The Secretary is authorized to prescribe such regulations, including regulations with respect to the auditing of project costs, as he considers necessary to effectuate the purposes of this section. (b) Costs Not Allowed.—The following are not allowable project costs: (1) the cost of construction of that part of an airport development project intended for use as a public parking facility for passenger automobiles; or (2) the cost of construction, alteration, or repair of a hangar or of any part of an airport building except, such of those buildings or parts of buildings intended to house facilities or activities directly related to the safety of persons at the airport.