(a) Grants.--Each year the owner of a public airport shall be eligible for a grant from the local real estate tax reimbursement portion of the Aviation Restricted Account. Except as otherwise provided in subsection (d), the grant shall be equal to the amount of local real estate tax paid on those portions of an airport which are aviation-related areas.

(b) Application form.--The owner of a public airport shall apply for the grant provided for in this section in the manner and on the forms as prescribed by the department.

(c) Notice to State Treasurer.--The department, following its review of each application for a grant, shall notify the State Treasurer of each applicant who qualifies therefor and the amount of the grant to which each applicant is eligible. Within 30 days of receiving the notification, the State Treasurer shall issue the grant to the qualifying applicant.

(d) Limit on grant.--The total grant of moneys in any one year shall not exceed a sum equal to the moneys collected on the sale of fuels sold for use in propeller-driven piston aircraft or aircraft engines for the previous year, plus any income earned on the fund. In the event that there are insufficient funds in the fund to meet the total annual grants provided for under this section, the department shall make such grants on a pro rata basis. In the event that there are surplus funds in the fund with which to meet the total annual grants provided for under this section, the department may make additional grants to public airport owners, which shall be used for airport development purposes.

(e) Administrative costs.--The costs of administering the grant program under this section shall be paid out of the revenues described in section 5103(c) (relating to Aviation Restricted Account). The costs of administering this program shall not exceed 10% of such revenues collected for that year.