§ 14-h. Airport preservation. 1. In order to preserve and enhance the air transportation system of the state, the commissioner of transportation is hereby authorized:

a. To enter into an agreement with the operator of any privately-owned airport to pay on behalf of the state a share of the project costs of any project undertaken in accordance with the provisions of the federal airport and airway improvement program of the federal aviation administration or any federal program hereafter enacted for the purpose of airport improvement.

b. To utilize for this purpose any funds available for the acquisition, construction, reconstruction or improvement of airports or aviation capital facilities, including but not limited to funds available from the transportation capital facilities bond act of nineteen hundred sixty-seven and the rebuild New York through transportation infrastructure renewal bond act of nineteen hundred eighty-three. Notwithstanding any provisions of law to the contrary, for airports funded pursuant to this section, the owner of a municipal airport may, with the approval of the commissioner, contract directly with the office of general services to provide for the removal of fuel tanks under such terms and conditions as set forth by the office of general services, including provision for the deposit of funds of such airport with the state comptroller, who is authorized to receive and accept the same for the purposes of this paragraph, for expenditure on such project costs or, as appropriate, for the return of any excess deposit to such airport, on vouchers approved by the office of general services.

c. To enter into any agreements necessary to effectuate the provisions of this section and to insure the availability to the public of any airport improved hereunder for the useful life of such improvement as defined in section sixty-one of the state finance law.

d. To receive applications for participation in this program by the operators of privately-owned airports determined by the commissioner to serve a public purpose and to establish standards governing the form, content and submission of such applications, including the requirement that any application submitted under this section by the owner of a privately-owned airport be accompanied by a resolution from the governing body of the municipality in which such airport is located formally endorsing the project for which state aid is requested.

e. To do all things necessary, convenient or desirable to carry out the purposes of this section.

2. The state share of any such improvement project undertaken with federal assistance from the federal aviation administration shall be limited to seventy-five percent of the non-federal share of such approved project.

3. Whenever a property owner intends to dispose of, sell, lease or otherwise transfer any or all of its interest in an air transportation facility and such disposal, sale, lease or transfer shall result in that facility no longer having as its principal function aviation operations or support, such owner shall notify the department in writing of its intention to transfer such interest on or before ninety days prior to such transfer.