GRANT ASSURANCES.

SEC. 131. GRANT ASSURANCES. Section 47107 of title 49, United States Code, is amended— (1) in subsection (a)(17), by striking “each contract” and inserting “if any phase of such project has received funds under this subchapter, each contract”; (2) in subsection (r)(3), by striking “2018” and inserting “2023”; and (3) by adding at the end the following: “(u) Construction of Recreational Aircraft.— “(1) In general.—The construction of a covered aircraft shall be treated as an aeronautical activity for purposes of— “(A) determining an airport’s compliance with a grant assurance made under this section or any other provision of law; and “(B) the receipt of Federal financial assistance for airport development. “(2) Covered aircraft defined.—In this subsection, the term ‘covered aircraft’ means an aircraft— “(A) used or intended to be used exclusively for recreational purposes; and “(B) constructed or under construction by a private individual at a general aviation airport. “(v) Community Use of Airport Land.— “(1) In general.—Notwithstanding subsection (a)(13), and subject to paragraph (2), the sponsor of a public-use airport shall not be considered to be in violation of this subtitle, or to be found in violation of a grant assurance made under this section, or under any other provision of law, as a condition for the receipt of Federal financial assistance for airport development, solely because the sponsor has entered into an agreement, including a revised agreement, with a local government providing for the use of airport property for an interim compatible recreational purpose at below fair market value. “(2) Restrictions.—This subsection shall apply only— “(A) to an agreement regarding airport property that was initially entered into before the publication of the Federal Aviation Administration’s Policy and Procedures Concerning the Use of Airport Revenue, dated February 16, 1999; “(B) if the agreement between the sponsor and the local government is subordinate to any existing or future agreements between the sponsor and the Secretary, including agreements related to a grant assurance under this section; “(C) to airport property that was acquired under a Federal airport development grant program; “(D) if the airport sponsor has provided a written statement to the Administrator that the property made available for a recreational purpose will not be needed for any aeronautical purpose during the next 10 years; “(E) if the agreement includes a term of not more than 2 years to prepare the airport property for the interim compatible recreational purpose and not more than 10 years of use for that purpose; “(F) if the recreational purpose will not impact the aeronautical use of the airport; “(G) if the airport sponsor provides a certification that the sponsor is not responsible for preparation, start-up, operations, maintenance, or any other costs associated with the recreational purpose; and “(H) if the recreational purpose is consistent with Federal land use compatibility criteria under section 47502. “(3) Statutory construction.—Nothing in this subsection may be construed as permitting a diversion of airport revenue for the capital or operating costs associated with the community use of airport land.” .