FHWA Reauthorization of TEA-21

TITLE III-FEDERAL TRANSIT ADMINISTRATION PROGRAMS

SEC. 3001. SHORT TITLE [Analysis]

This title may be cited as the "Federal Public Transportation Act of 2003."

SEC. 3002. UPDATED TERMINOLOGY; AMENDMENTS TO TITLE 49, UNITED STATES CODE. [Analysis]

(a) UPDATED TERMINOLOGY.--Chapter 53 of title 49, United States Code, including the chapter analysis, is amended by striking "mass" each place it appears before "transportation" and inserting "public", except in sections 5301(f), 5302(a)(7), 5315, 5323(a)(1), and 5323(a)(1)(B).

(b) AMENDMENTS TO TITLE 49.--Except as otherwise specifically provided, whenever in this title an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision of law, the reference shall be considered to be made to a section or other provision of title 49, United States Code.

SEC. 3003. POLICIES, FINDINGS, AND PURPOSES. [Analysis]

(a) IN GENERAL.-Section 5301(a) is amended to read as follows:

"(a) DEVELOPMENT AND REVITALIZATION OF PUBLIC TRANSPORTATION SYSTEMS.-It is in the economic interest of the United States to foster the development and revitalization of public transportation systems that maximize the efficient, secure, and safe mobility of individuals, and minimize environmental impacts and reliance on foreign oil.".

(b) PRESERVING THE ENVIRONMENT.-Section 5301(e) is amended by--

(1) striking "an urban" and inserting "a"; and

(2) striking "under sections 5309 and 5310 of this title".

(1) in paragraph (1) by-

(A) striking "mass" after "improved" and inserting "public"; and

(B) striking "public and private mass transportation companies inserting "both public transportation companies and private companies engaged in public transportation";

(2) in paragraphs (2) and (3) by-

(A) striking "urban mass" after "areawide" and inserting "public", and

(B) striking "public and private mass transportation companies" and inserting "both public transportation companies and private companies engaged in public transportation"; and

(3) in paragraph (5), by striking "urban mass" and inserting "public".

SEC. 3004. DEFINITIONS [Analysis]

(a) IN GENERAL.-Section 5302 is amended to read as follows:
"§ 5302. Definitions

"(a) IN GENERAL.--In this chapter, the following definitions apply:

"(1) 'access to jobs project' means a project relating to the development and maintenance of transportation services designed to transport welfare recipients and low-income individuals to and from jobs and activities related to their employment, including--

"(A) transportation projects to finance planning, capital and operating costs of providing access to jobs under this chapter;

"(B) promoting public transportation by low-income workers;

"(C) promoting the use of transit vouchers for welfare recipients and low-income individuals; and

"(D) promoting the use of employer-provided transportation, including the transit pass benefit program under section 132 of the Internal Revenue Code of 1986.".

"(1a) 'capital project' means a project for--

(A) acquiring, constructing, supervising, or inspecting equipment or a facility for use in public transportation, expenses incidental to the acquisition or construction (including designing, engineering, location surveying, mapping, and acquiring rights-of-way), payments for the capital portions of rail trackage rights agreements, transit-related intelligent transportation systems, relocation assistance, acquiring replacement housing sites, and acquiring, constructing, relocating, and rehabilitating replacement housing;

"(B) rehabilitating a bus;

"(C) remanufacturing a bus;

"(D) overhauling rail rolling stock;

"(E) preventive maintenance;

"(F) leasing equipment or a facility for use in public transportation, subject to regulations that the Secretary prescribes limiting the leasing arrangements to those that are more cost-effective than purchase or construction;

"(G) a public transportation improvement that enhances economic development or incorporates private investment, including commercial and residential development, pedestrian and bicycle access to a public transportation facility, and the renovation and improvement of historic transportation facilities, because the improvement enhances the effectiveness of a public transportation project and is related physically or functionally to that public transportation project, or establishes new or enhanced coordination between public transportation and other transportation, and provides a fair share of revenue for public transportation that will be used for public transportation--

"(i) including property acquisition, demolition of existing structures, site preparation, utilities, building foundations, walkways, open space, safety and security equipment and facilities (including lighting, surveillance and related intelligent transportation system applications), facilities that incorporate community services such as daycare or health care, and a capital project for, and improving, equipment or a facility for an intermodal transfer facility or transportation mall, except that a person making an agreement to occupy space in a facility under this subparagraph shall pay a reasonable share of the costs of the facility through rental payments and other means; and

"(ii) excluding construction of a commercial revenue-producing facility or a part of a public facility not related to public transportation;

"(H) the introduction of new technology, through innovative or improved products, into public transportation;

"(I) the provision of nonfixed route paratransit transportation services in accordance with section 223 of the Americans with Disabilities Act of 1990, but only for grant recipients that are in compliance with applicable requirements of that Act, including both fixed route and demand responsive service, and only for amounts not to exceed 10 percent of such recipient's annual formula apportionment under sections 5307 and 5311;

"(J) crime prevention and security-

"(i) including-

"(I) projects to refine and develop security and emergency response plans;

"(II) projects aimed at detecting chemical and biological agents in public transportation;

"(III) the conduct of emergency response drills with public transportation agencies and local first response agencies; or

"(IV) security training for public transportation employees; but,

"(ii) excluding all expenses related to operations, except for such expenses incurred in the provisions of activities under clauses (III) and (IV) of this subparagraph; or

"(K) establishment of a debt service reserve made up of deposits with a bondholders' trustee in a non-interest bearing account for the purpose of assuring timely payment of principal and interest on bonds issued by a grant recipient for purposes of financing an eligible project under this Chapter.

"(L) remediation associated with construction of a capital project as described this paragraph on a brownfield site as defined in 42 U.S.C. 9601.

"(2) 'chief executive officer of a State' includes the designee of the chief executive officer.

"(3) 'emergency regulation' means a regulation--

"(A) that is effective temporarily before the expiration of the otherwise specified periods of time for public notice and comment under section 5334(c); and

"(B) prescribed by the Secretary as the result of a finding that a delay in the effective date of the regulation--

"(i) would injure seriously an important public interest;

"(ii) would frustrate substantially legislative policy and intent; or

"(iii) would damage seriously a person or class without serving an important public interest.

"(4) 'fixed guideway' means a public transportation facility--

"(A) using and occupying a separate right-of-way or rail for the exclusive use of public transportation and other high occupancy vehicles; or

"(B) using a fixed catenary system and a right-of-way usable by other forms of transportation.

"(5) 'individual with a disability' means an individual who, because of illness, injury, age, congenital malfunction, or other incapacity or temporary or permanent disability (including an individual who is a wheelchair user or has semiambulatory capability), cannot use effectively, without special facilities, planning, or design, public transportation service or a public transportation facility.

"(6) 'local governmental authority' includes--

"(A) a political subdivision of a State;

"(B) an authority of at least 1 State or political subdivision of a State;

"(C) an Indian tribe; and

"(D) a public corporation, board, or commission established under the laws of a State.

"(7) 'mass transportation' means public transportation.

"(7a) 'mobility management' means an activity or project that involves one or more of the following goals:

"(A) Addressing public transportation customer needs.

"(B) Tailoring public transportation services to specific market niches.

"(C) Managing public transportation demand.

"(D) Land use compatibility with public transportation services.

"(E) Improving coordination among public transportation providers and other transportation service providers.

"(8) 'net project cost' means the part of a project that reasonably cannot be financed from revenues.

"(9) 'new bus model' means a bus model (including a model using alternative fuel)--

"(A) that has not been used in public transportation in the United States before the date of production of the model; or

"(B) used in public transportation in the United States, but being produced with a major change in configuration or components.

"(10) 'public transportation' means transportation by a conveyance that provides regular and continuing general or special transportation to the public, but does not include school bus, charter, or sightseeing transportation.

"(10a) 'recipient' means an entity that receives Federal transit program assistance directly from the Federal government.

"(11) 'regulation' means any part of a statement of general or particular applicability of the Secretary designed to carry out, interpret, or prescribe law or policy in carrying out this chapter.

"(11a) 'reverse commute project' means a public transportation project designed to transport residents of urban areas, urbanized areas, and areas other than urbanized areas to suburban employment opportunities, including any projects to-

"(A) subsidize the costs associated with adding reverse commute bus, train, carpool, van routes, or service from urban areas, urbanized areas, and areas other than urbanized areas, to suburban workplaces;

"(B) subsidize the purchase or lease by a nonprofit organization or public agency of a van or bus dedicated to shuttling employees from their residences to a suburban workplace; or

"(C) otherwise facilitate the provision of public transportation services to suburban employment opportunities.

"(12) 'Secretary' means the Secretary of Transportation.

"(13) 'State' means a State of the United States, the District of Columbia, Puerto Rico, the Northern Mariana Islands, Guam, American Samoa, and the Virgin Islands, except as defined in section 5305 of this title.

"(13a) 'subrecipient' means an entity that receives Federal transit program assistance indirectly through a recipient, rather than directly from the Federal government.

"(14) 'transit' means public transportation.

"(15) 'transit enhancement' means, with respect to any project or an area to be served by a project, projects that are designed to enhance public transportation service or use and that are physically or functionally related to transit facilities. Eligible projects are--

"(A) historic preservation, rehabilitation, or operation of historic public transportation buildings, structures, or facilities (including historic bus or railroad facilities);

"(B) bus shelters;

"(C) landscaping and other scenic beautification, including tables, benches, trash receptacles, and street lights;

"(D) public art;

"(E) pedestrian access or walkways;

"(F) bicycle access, including bicycle storage facilities and installing equipment for transporting bicycles on public transportation vehicles;

"(G) transit connections to parks within the recipient's transit service area;

"(H) signage; and

"(I) enhanced access for individuals with disabilities to public transportation.

"(16) [reserved]

"(17) 'urbanized area' means an area encompassing a population of at least 50,000 people that has been defined and designated in the latest decennial census as an "urbanized area" by the Secretary of Commerce.

"(18) 'welfare recipient' means an individual who receives or received aid or assistance under a State or tribal program funded under part A of title IV of the Social Security Act (whether in effect before or after the effective date of the amendments made by title I of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (Public Law 104-193; 110 Stat. 2110)) at any time during the 3-year period before the date on which the applicant applies for a grant under this section.

"(b) AUTHORITY TO MODIFY 'individual with a disability '.--The Secretary may by regulation modify the definition of the term 'individual with a disability' in subsection (a)(5) as it applies to section 5307(d)(1)(D).".

(b) CONFORMING AMENDMENT.-Section 5321 is repealed.

SEC. 3005. METROPOLITAN PLANNING. [Analysis]

The text of section 5303 is amended to read as follows:

"Grants made under sections 5307, 5308, 5309, 5310, 5311, 5316, and 5317 shall be carried out in accordance with the metropolitan planning provisions of chapter 52 of this title.".

SEC. 3006. STATEWIDE PLANNING. [Analysis]

(a) SECTION HEADING.-Section 5304 is amended by striking the section heading and inserting the following:
"§ 5304. Statewide planning".

(b) The text of section 5304 is amended to read as follows:

"Grants made under sections 5307, 5308, 5309, 5310, 5311, 5316, and 5317 shall be carried out in accordance with the statewide planning provisions of chapter 52 of this title.".

(c) CONFORMING AMENDMENT.-The item relating to section 5304 in the table of sections for chapter 53 is amended to read as follows:
"5304. Statewide planning.".

SEC. 3007. PLANNING PROGRAMS. [Analysis]

(a) IN GENERAL.--Section 5305 is amended to read as follows:
"§ 5305. Planning programs

"(a) DEFINITIONS.-In this section the following definitions apply:

"(1) 'State' means a State of the United States, the District of Columbia, and Puerto Rico, and

"(2) 'planning emphasis area' means priority themes identified by the Secretary for consideration in sections 5303 and 5304 of this title.

"(b) GENERAL AUTHORITY.-Under criteria the Secretary establishes, the Secretary may make grants to States, authorities of the States, metropolitan planning organizations, and local governmental authorities, or may make agreements with other departments, agencies, and instrumentalities of the Government, or may enter into contracts with private non-profit or for-profit entities for development of, transportation plans and programs and to plan, engineer, design, and evaluate a public transportation project and for other technical studies, including-

"(1) studies related to management, planning, operations, capital requirements, and economic feasibility;

"(2) evaluating previously financed projects;

"(3) peer reviews and exchanges of technical data, information, assistance, and related activities in support of planning and environmental analyses among metropolitan planning organizations and other transportation planners; and,

"(4) other similar and related activities preliminary to and in

preparation for constructing, acquiring, or improving the operation of facilities and equipment.

"(c) PURPOSE.-To the extent practicable, the Secretary shall ensure that amounts appropriated or made available under section 5338 of this title to carry out this section and sections 5303 and 5304 of this title are used to support balanced and comprehensive transportation planning that considers the relationships among land use and all transportation modes, without regard to the programmatic source of the planning amounts.

"(d) METROPOLITAN PLANNING PROGRAM- (1) The Secretary shall apportion 80 percent of the amount made available under subsection (h)(2)(A) of this section to States to carry out sections 5303 and 5306 of this title in a ratio equal to the population in urbanized areas in each State divided by the total population in urbanized areas in all States, as shown by the latest available decennial census of population. A State may not receive less than .5 percent of the amount apportioned under this paragraph.

"(2) Amounts apportioned to a State under paragraph (1) of this subsection shall be made available promptly after allocation to metropolitan planning organizations in the State designated under this section under a formula--

"(A) the State develops in cooperation with the metropolitan planning organizations;

"(B) the Secretary of Transportation approves; and

"(C) that considers population in urbanized areas and provides an appropriate distribution for urbanized areas to carry out the cooperative processes described in this section.

"(3) The Secretary shall apportion 20 percent of the amount made available under subsection (h)(2)(A) of this section to States to supplement allocations made under paragraph (1) of this subsection for metropolitan planning organizations. Amounts under this paragraph shall be allocated under a formula that reflects the additional cost of carrying out planning, programming, and project selection responsibilities under sections 5303 and 5306 of this title in complex metropolitan planning areas.

"(e) STATE PLANNING AND RESEARCH PROGRAM.--(1) The amounts made available pursuant to subsection (h)(2)(B) of this section shall be apportioned to States for grants and contracts to carry out sections 5303-5306, 5315, and 5322 of this title. The amounts shall be apportioned so that each State receives an amount equal to the population in urbanized areas in the State, divided by the population in urbanized areas in all States, as shown by the latest available decennial census. However, a State must receive at least .5 percent of the amount apportioned under this subsection.

"(2) A State, as the State considers appropriate, may authorize part of the amount made available under this subsection to be used to supplement amounts available under subsection (d) of this section.

"(f) PLANNING CAPACITY BUILDING PROGRAM-(1) The Secretary shall establish a Planning Capacity Building Program to support and fund innovative practices and enhancements in transportation planning. The purpose of this program shall be to promote activities that support and strengthen the planning processes required under this section and sections 5303 and 5304 of this chapter.

"(2) Funding available under subsection (h)(1) of this section to carry out this subsection will support-

"(A) incentive grants to state, metropolitan planning organizations, and public transportation operators; and

"(B) research, information dissemination, and technical assistance.

"(3) The Secretary may use the funds for the purpose described in paragraph (2)(B) independently or make grants to, or enter into contracts, cooperative agreements, and other transactions, with a Federal agency, State agency, local governmental authority, association, nonprofit or for-profit entity, or institution of higher education, to carry out the purposes of this subsection.

"(4) The program shall be administered by the Federal Transit Administration in cooperation with the Federal Highway Administration.

"(g) GOVERNMENT'S SHARE OF COSTS -(1) Amounts made available to carry out subsections (d), (e) and (f) of this section may not exceed 80 percent of the costs of the activity unless the Secretary of Transportation decides it is in the interests of the Government not to require a State or local match.

"(2) When there are planning emphasis areas funded under a grant or contract financed under this section, the Secretary may establish a Government share consistent with the planning emphasis area benefit.

"(h) ALLOCATION OF FUNDS.-Of the funds made available by or appropriated to carry out this section under section 5338(a)(2)(A) and (B) and 5338(b)(3)(A) and (B) of this title for fiscal years 2004 through 2009,

"(1) $5,000,000 shall be available for the planning capacity building program under subsection (f) of this section; and

"(2) of the remaining amount,

"(A) 82.72 percent shall be available for metropolitan planning program under subsection (d) of this section; and

"(B) 17.28 percent shall be available to carry out subsections (b) and (e) of this section.

"(i) AVAILABLITY OF AMOUNTS-An amount apportioned under this section that remains available for 3 years after the fiscal year in which the amount is apportioned shall be reapportioned among the States.".

(b) CONFORMING AMENDMENT.-The item relating to section 5305 in the table of sections for chapter 53 is amended to read as follows:
"5305. Planning programs.".

SEC. 3008. PRIVATE ENTERPRISE PARTICIPATION [Analysis]

(a) SECTION HEADING.-Section 5306 is amended by striking the section heading and inserting the following:
"§ 5306. Private enterprise participation in metropolitan planning and statewide planning".

(b) CONFORMING AMENDMENT.-The item relating to section 5306 in the table of sections for chapter 53 is amended to read as follows:
"5306. Private enterprise participation in metropolitan planning and statewide planning.".

SEC. 3009. URBANIZED AREA PUBLIC TRANSPORTATION FORMULA GRANTS PROGRAM. [Analysis]

(a) SECTION HEADING.-Section 5307 is amended by striking the section heading and inserting the following:
"§ 5307. Urbanized area public transportation formula grants program".

(b) TECHNICAL AMENDMENTS-Section 5307 is amended by-

(1) striking subsections (h), (j) and (k); and

(2) redesignating subsections (i), (l), (m), and (n) as subsections (h), (i), (j), and (k), respectively.

"(a) DEFINITIONS.--In this section,:

"(1) 'designated recipient' means--

"(A) an entity designated, consistent with the planning process under sections 5303-5306 of this title, by the chief executive officer of a State, responsible local officials, and publicly owned operators of public transportation to receive and apportion amounts under sections 5336 and 5337 of this title that are attributable to transportation management areas established under section 5303 of this title; or

"(B) a State or regional authority if the authority is responsible under the laws of a State for a capital project and for financing and directly providing public transportation.

"(2) 'subrecipient' means a State or local governmental authority, a nonprofit organization, or a private operator of public transportation service that may receive a Federal transit program grant indirectly through a recipient, rather than directly from the Federal government.".

(d) GENERAL AUTHORITY-Section 5307(b) is amended-

(1) by striking paragraph (1) and inserting a new paragraph (1) as follows:

"(1) The Secretary of Transportation may make grants under this section for-

"(A) capital projects;

"(B) planning and mobility management;

"(C) transit enhancements; and

"(D) operating costs of equipment and facilities for use in public transportation in an urbanized area with a population of less than 200,000.";

(2) by striking paragraphs (2) and (4);

(3) by redesignating paragraph (3) as paragraph (2); and

(4) in redesignated paragraph (2), by striking "5305(a)" and inserting "5303".

(e) GRANT RECIPIENT REQUIREMENTS.-Section 5307(d) is amended-

(1) in paragraph (1)(A), by inserting ", including safety and security aspects of the program" after "capacity";

(2) in paragraph (1)(E), by striking everything that appears after "section" and inserting "the recipient will comply with section 5323 and 5325 of this title";

(3) in paragraph (1)(H), by striking "5310(a)-(d)";

(4) by striking paragraph (1)(I);

(5) by redesignating paragraph (1)(J) as paragraph (1)(I); and

(6) by adding at the end of subsection (f)(1), as redesignated, the following:

"(J) with a population of at least 200,000 in its urbanized area will expend one percent of the amount the recipient receives each fiscal year under this section for transit enhancement activities described in section 5302(a)(15)of this title.

(f) GOVERNMENT'S SHARE OF COSTS.-Section 5307(e), is amended-

(1) in the first sentence, by striking "(including associated capital maintenance items)"; and

(2) in the fourth sentence, by striking "that are more than the amount of those revenues in the fiscal year that ended September 30, 1985" and inserting "and amounts received under a service agreement with a State or local social service agency or a private social service organization".

(g) UNDERTAKING PROJECTS IN ADVANCE.-Section 5307(g) is amended by striking paragraph (4).

(h) REVIEWS, AUDITS, AND EVALUATIONS.-Section 5307(h), as redesignated, is amended in paragraph (1) (A) by striking "shall" and inserting "may".

(i) RELATIONSHIP TO OTHER LAWS.-Section 5307(k), as redesignated, is amended to read as follows:

"(k)(1) Sections 5301, 5302, 5303, 5304, 5306, 5315(c), 5318, 5319, 5323, 5325, 5327, 5329, 5330, 5331, 5332, 5333 and 5335" of this title apply to this section and to a grant made under this section. Except as provided in this section, no other provision of this chapter applies to this section or to a grant made under this section.

"(2) The provision of assistance under this chapter shall not be construed as bringing within the application of chapter 15, title 5, U.S.C., any nonsupervisory employee of a public transportation system (or any other agency or entity performing related functions) to which such chapter is otherwise inapplicable.".

(j) CONFORMING AMENDMENTS.- (1) The item relating to section 5307 in the table of sections for chapter 53 is amended to read as follows:
"5307. Urbanized area public transportation formula grants program.".

(2) Section 3037 of the Transportation Equity Act for the 21^st Century, Pub. L. 105-178, as amended, is repealed.

SEC. 3010. FORMULA GRANTS FOR OTHER THAN URBANIZED AREAS. [Analysis]

(a) DEFINITIONS.-Section 5311(a) is amended to read as follows:-

"(a) DEFINITIONS.-In this section,

"(1) 'recipient' means a State that receives a Federal transit program grant directly from the Federal government.

(b) GENERAL AUTHORITY.-Section 5311(b) is amended-

(1) by revising paragraph (1) to read as follows:

"(1) Except as provided in paragraph (2) of this subsection, the Secretary may make grants to areas other than urbanized areas under this section for the following:

"(A) public transportation capital projects;

"(B) operating costs of equipment and facilities for use in public transportation; and

"(C) the acquisition of public transportation services.";

(2) by redesignating paragraph (2) as paragraph (3) and inserting a new paragraph (2), as follows:

"(2) A project eligible for a grant under this section shall be included in a State program for public transportation service projects, including agreements with private providers of public transportation service. The program shall be submitted annually to the Secretary. The Secretary may approve the program only if the Secretary finds that the program provides a fair distribution of amounts in the State, including Indian reservations, and the maximum feasible coordination of public transportation service assisted under this section with transportation service assisted by other federal sources.";

(3) In paragraph (3), as redesignated, by inserting "use not more than 2 percent of the amount made available to carry out this section to" before "make"; and

(4) by adding after paragraph (3) the following:

"(4) Of the amount available to carry out paragraph (3), not more than 15 percent may be used to carry out projects of a national scope, with the remaining balance provided to the States."

"(c) APPORTIONMENTS.-(1) The amounts made available under section 5338(a)(2)(K) shall be apportioned as follows:

"(A) For each eligible State in accordance with paragraph (2) of this subsection:

"(i) $2,500,000 in fiscal year 2004.

"(ii) Three percent in fiscal year 2005.

"(iii) Five percent in fiscal year 2006.

"(iv) Seven percent in fiscal year 2007.

"(v) Nine percent in fiscal year 2008.

"(vi) Ten percent in every fiscal year thereafter.

"(B) Remaining amounts shall be apportioned to each State in accordance with paragraph (3) of this subsection.

"(2)(A) Of the amounts to be apportioned under paragraph (1)(A) of this subsection, the Secretary may use the following amounts to make grants to establish data collection systems capable of collecting the data in subparagraph (C) of this paragraph:

"(i) 100 percent in fiscal year 2004.

"(ii) $1,500,000 in fiscal year 2005.

"(iii) $500,000 in fiscal year 2006.

"(B) Amounts under subparagraph (A) of this paragraph not obligated within three years following the end of the fiscal year in which those amounts became available shall be available for apportionment under subparagraph (C) of this paragraph.

"(C) The remaining amounts to be apportioned under paragraph (1)(A) of this subsection shall be apportioned by a formula determined by the Secretary that distributes funds based on increases in public transportation patronage in other-than-urbanized areas.

"(D) In apportioning funds under subparagraph (C) of this paragraph, the Secretary may consider the efficiency of service provision in the non-urbanized areas in the State.

"(3) Each State shall receive an amount equal to the remaining amount apportioned multiplied by a ratio equal to the population of areas other than urbanized areas in a State divided by the population of all areas other than urbanized areas in the United States, as shown by the most recent Federal government decennial census of population."

(d) USE FOR ADMINISTRATIVE, PLANNING, AND TECHNICAL ASSISTANCE.-Section 5311(e) is amended by striking-

(1) " Use for administration and technical assistance. (1)" and inserting "Use for administration, planning, and technical assistance."; and

(2) "to a recipient" after "technical assistance"; and

(3) paragraph (2).

(e) INTERCITY BUS TRANSPORTATION.-Section 5311(f) is amended-

(1) in paragraph (1), by striking "after September 30, 1993,"; and

(2) by inserting at the beginning of paragraph (2) "After consultation with affected intercity bus service providers,".

(f) GOVERNMENT'S SHARE OF COSTS.-Section 5311(g) is amended to read as follows:

"(g) GOVERNMENT'S SHARE OF COSTS.-(1) A grant for a capital project under this section may not exceed 80 percent of the net capital costs of the project, as determined by the Secretary. A grant made under this section for operating assistance may not exceed 50 percent of the net operating costs of the project, as determined by the Secretary. The remainder-

"(A) may be provided from an undistributed cash surplus, a replacement or depreciation cash fund or reserve, a service agreement with a State or local social service agency or a private social service organization, or new capital; and

"(B) may be derived from amounts appropriated to or made available to a department or agency of the Federal government (other than the Department of Transportation, except for Federal Land Highway funds) that are eligible to be expended for transportation.

"(2) A state carrying out a program of operating assistance under this section may not limit the level or extent of use of the Government grant for the payment of operating expenses.

"(3) For purposes of paragraph (2)(B) of this section, the prohibitions on the use of funds for matching requirements under section 403(a)(5)(c)(vii) of the Social Security Act shall not apply to federal or state funds to be used for transportation purposes.".

(g) INDIAN RESERVATION RURAL TRANSIT PROGRAM.--Section 5311(h) is amended to read as follows:

"(h) INDIAN RESERVATION RURAL TRANSIT PROGRAM--(1) In this subsection, the term `Indian tribe' has the meaning given the term in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b).

"(2)(A) The Secretary shall establish and carry out through the States a program to provide grants to Indian tribes to operate, maintain, and establish rural transit programs on reservations or other land under the jurisdiction of the Indian tribes.

"(B) The state may waive or reduce the amount of local share required for these grants.

"(3) Notwithstanding any other provision of law, for each fiscal year, of the amount made available to carry out this section under section 5338(a)(2)(K) for the fiscal year, the Secretary shall make available $10,000,000 to carry out this subsection.

"(4) Of the funds made available pursuant to paragraph (3) of this subsection,

"(A) $9,500,000 shall be apportioned to the states based on a ratio equal to the tribal population in each state divided by the total tribal population in all states, as shown by the latest decennial census of population for allocation to existing Indian tribal rural transit programs and to plan and establish new Indian tribe rural transit programs;

"(B) prior to distribution by states of in-state amounts to Indian tribes, each State may use up to 5 percent for state administration;

"(C) amounts apportioned to a state under paragraph (A) of this subsection shall be distributed to Indian tribes in the state based on an allocation plan--

"(i) the state develops in cooperation with Indian tribes;

"(ii) the Secretary approves; and

"(iii) that provides an appropriate distribution for funding the needs of existing and new Indian Reservation Rural Transit Systems; and

"(D) $500,000 shall be available to the Secretary to provide technical assistance, including best practices and outreach, to the states and tribes through grants, contracts, or other arrangements and shall be in addition to and not in lieu of other funds available for these purposes.

"(5) An amount apportioned to the states under this subsection--

"(A) remains available for 3 years after the fiscal year in which the amount was apportioned; and

"(B) shall be reapportioned among the states if unobligated at the end of the 3-year period.".

(h) RELATIONSHIP TO OTHER LAWS.--Section 5311(j) is amended to read as follows:

"(j) RELATIONSHIP TO OTHER LAWS.--(1) Except as provided in subparagraphs (2) and (3) of this subsection, a grant under this section is subject to the requirements of 5307 to the extent the Secretary considers appropriate.

"(2) Sections 5323(a)(1)(D) and 5333(b) of this title shall apply, provided that the Secretary of Labor shall utilize a Special Warranty that provides a fair and equitable arrangement to protect the interest of employees.

"(3) The Secretary may waive the applicability of the Special Warranty under paragraph (2) for private non-profit subrecipients on a case-by-case basis as the Secretary deems appropriate.

"(4) This subsection does not affect or discharge a responsibility of the Secretary under a law of the United States.".

SEC. 3011. NEW FREEDOM PROGRAM. [Analysis]

(a) Chapter 53 of title 49, United States Code, is amended by inserting after section 5316 the following:
"§ 5317. New Freedom program

"(a) DEFINITIONS.--In this section,

"(1) 'recipient' means a State that receives a grant under this section directly.

"(2) 'subrecipient' means a State or local governmental authority, a nonprofit organization, or a private operator of public transportation service that may receive a grant under this section indirectly through a recipient, rather than directly from the Federal government.".

"(b) GENERAL AUTHORITY.-(1) The Secretary of Transportation may provide grants to recipients for new transportation services and transportation alternatives beyond those required by the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.), including motor vehicle programs that assist persons with disabilities with transportation to and from jobs and employment support services.

"(2) A recipient may use not more than 15 percent of the amounts apportioned under this section to administer, plan, and provide technical assistance for a project funded under this section.

"(c) APPORTIONMENTS.--(1) The Secretary shall apportion amounts made available under section 5338(a)(2)(H) of this title under a formula the Secretary administers.

"(2) The recipient may transfer any funds apportioned to it under this subsection to sections 5311(c) or 5336. Any funds transferred pursuant to this subsection shall be made available only for eligible projects selected under this section.

"(d) GRANT REQUIREMENTS--(1) Except as provided in paragraphs (2) and (3) of this subsection, a grant under this section is subject to the requirements of 5307 to the extent the Secretary considers appropriate.

"(2) Section 5333(b) of this title shall apply, provided that the Secretary of Labor shall utilize a Special Warranty that provides a fair and equitable arrangement to protect the interest of employees.

"(3) The Secretary may waive the applicability of the Special Warranty under paragraph (2) for private non-profit subrecipients on a case-by-case basis as the Secretary deems appropriate.

"(4) A recipient of a grant under this section shall certify that allocations of the grant to subrecipients are distributed on a fair and equitable basis.

"(e) COMPETITIVE PROCESS--(1) The recipient shall conduct a statewide solicitation for applications for grants under this section.

"(2) Subrecipients seeking to receive a grant under this section shall submit to the recipient an application in the form and in accordance with such requirements as the recipient shall establish.

"(3) Subrecipients submitting applications pursuant to paragraph (2) shall be selected on a competitive basis.

"(f) COORDINATION--.(1) The Secretary shall coordinate activities under this section with related activities under programs of other Federal departments and agencies.

"(2) A recipient that transfers funds to section 5336 pursuant to subsection (c)(2) shall certify that the project for which the funds are requested has been coordinated with private non-profit providers of services under this section.

"(3) A recipient of funds under this section shall certify that--

"(A) the projects selected were derived from a locally developed, coordinated public transit-human services transportation plan; and

"(B) the plan was developed through a process that included representatives of public, private, and nonprofit transportation and human services providers and participation by the public;

"(A) provided from an undistributed cash surplus, a replacement or depreciation cash fund or reserve, a service agreement with a State or local social service agency or a private social service organization, or new capital; and

"(B) derived from amounts appropriated to or made available to a department or agency of the Federal government (other than the Department of Transportation, except for Federal Land Highway funds) that are eligible to be expended for transportation.

"(2) A recipient carrying out a program of operating assistance under this section may not limit the level or extent of use of the Government grant for the payment of operating expenses.

"(3) For purposes of paragraph (1)(B) of this section, the prohibitions on the use of funds for matching requirements under section 403(a)(5)(c)(vii) of the Social Security Act shall not apply to federal or state funds to be used for transportation purposes.

(b) CONFORMING AMENDMENT.-The table of sections for Chapter 53 is amended after the item relating to section 5316 by adding the following:
"5317. New Freedom program.".

SEC. 3012. MAJOR CAPITAL INVESTMENT PROGRAM. [Analysis]

(a) MAJOR CAPITAL INVESTMENT PROGRAM.-Section 5309 is amended to reads as follows:
"§ 5309. Major capital investment grants

"(a) GENERAL AUTHORITY.-(1) The Secretary of Transportation may make grants under this section to State and local governmental authorities to assist them and their subrecipients in financing capital projects for-

"(A) new fixed guideway systems, extensions to existing fixed guideway systems, and related project activities;

"(B) the capital costs of coordinating public transportation with other transportation;

"(C) the introduction of new technology, through innovative or improved products, into public transportation; or

"(D) the development of corridors to support public transportation, including protecting rights of way through acquisition, construction of dedicated bus and high occupancy vehicle lanes or park and ride lots, or other capital improvements that the Secretary may decide would result in increased public transportation usage in the corridor.

"(2) The Secretary shall require that a grant under this subsection be subject to the terms, conditions, requirements, and provisions the Secretary decides are necessary or appropriate for the purposes of this section, including requirements for the disposition of net increases in value of real property resulting from the project assisted under this section.

"(b) PROJECT AS PART OF APPROVED PROGRAM OF PROJECTS.-(1) The Secretary may not approve a grant for a project under this section unless the Secretary finds that the project is part of an approved transportation plan and program of projects required under sections 5303-5306 of this title, and that the applicant has or will have the legal, financial, and technical capacity to carry out the project (including safety and security aspects of the project), satisfactory continuing control over the use of the equipment or facilities, and the capability and willingness to maintain the equipment or facilities.

"(2) An applicant that has submitted a certification required by section 5307(d)(1)(A)-(C) and (H) of this title shall provide sufficient information upon which the Secretary can make the findings required by this subsection.

"(c) CRITERIA FOR MAJOR CAPITAL INVESTMENT GRANTS OF $75 MILLION OR MORE.-(1) A project financed under this subsection shall be carried out through a full funding grant agreement. The Secretary shall enter into a full funding grant agreement based on the evaluations and ratings required under this subsection. The Secretary shall not enter into a full funding grant agreement for a project unless that project is authorized for final design and construction and has been rated as 'medium,' 'medium-high,' or 'high,' as defined in this subsection.

"(2) The Secretary may approve a grant under this section for a major capital project only if the Secretary makes the following determinations, based upon evaluations and considerations as set forth below:

"(A) The Secretary may approve a grant under this section for a major capital project only if the Secretary determines that the proposed project is--

"(i) based on the results of an alternatives analysis and preliminary engineering;

"(ii) justified based on a comprehensive review of its mobility improvements, environmental benefits, cost effectiveness, operating efficiencies, transit supportive policies and existing land use; and

"(iii) supported by an acceptable degree of local financial commitment, including evidence of stable and dependable financing sources to construct the project, and maintain, and operate the entire public transportation system.

"(B) Before making the determinations required by paragraph (2)(A), the Secretary shall first analyze, evaluate, and consider the following factors:

"(i) In evaluating a project for purposes of making the finding required by paragraph (2)(A)(i), the Secretary shall analyze and consider the results of the alternatives analysis and preliminary engineering for the project.

"(ii) In evaluating a project for purposes of making the finding required by paragraph (2)(A)(ii), the Secretary shall-

"(I) consider the direct and indirect costs of relevant alternatives;

"(II) consider factors such as congestion relief, improved mobility, air pollution, noise pollution, energy consumption, and all associated ancillary and mitigation costs necessary to carry out each alternative analyzed, and recognize reductions in local infrastructure costs achieved through compact land use development;

"(III) identify and consider public transportation supportive existing land use policies and future patterns, and the cost of suburban sprawl;

"(IV) consider the degree to which the project increases the mobility of the public transportation dependent population or promotes economic development;

"(V) consider population density and current transit ridership in the corridor;

"(VI) consider the technical capability of the grant recipient to construct the project;

"(VII) adjust the project justification to reflect differences in local land, construction, and operating costs; and

"(VIII) consider other factors that the Secretary determines appropriate to carry out this chapter.

"(iii) In evaluating a project under paragraph (2)(A)(iii), the Secretary shall require that-

"(I) the proposed project plan provides for the availability of contingency amounts that the Secretary determines to be reasonable to cover unanticipated cost increases;

"(II) each proposed local source of capital and operating financing is stable, reliable, and available within the proposed project timetable; and

"(III) local resources are available to operate the overall proposed public transportation system (including essential feeder bus and other services necessary to achieve the projected ridership levels) without requiring a reduction in existing public transportation services to operate the proposed project.

"(iv) In assessing the stability, reliability, and availability of proposed sources of local financing under paragraph (2)(A)(iii), the Secretary shall consider-

"(I) existing grant commitments;

"(II) the degree to which financing sources are dedicated to the purposes propose;

"(III) any debt obligation that exists or is proposed by the recipient for the proposed project or other public transportation purpose; and

"(IV) the extent to which the project has a local financial commitment that exceeds the required non-Federal share of the cost of the project.

"(3) A proposed project may advance from alternatives analysis to preliminary engineering, and may advance from preliminary engineering to final design and construction, only if the Secretary finds that the project meets the requirements of this section and there is a reasonable likelihood that the project will continue to meet such requirements. In making the findings, the Secretary shall evaluate and rate the project as 'high,' 'medium-high,' 'medium,' 'low-medium,' or 'low,' based on the results of alternatives analysis, the project justification criteria, and the degree of local financial commitment, as required under this subsection. In rating the projects, the Secretary shall provide, in addition to the overall project rating, individual ratings for each of the criteria established by regulation.

"(d) CRITERIA FOR MAJOR CAPITAL INVESTMENT GRANTS LESS THAN $75 MILLION.-If the assistance provided under this section is less than $75,000,000, the project shall be subject to the requirements set forth in subsection (c) of this section only to the extent the Secretary determines appropriate.

"(e) PREVIOUSLY ISSUED LETTER OF INTENT OR FULL FUNDING GRANT AGREEMENT.-Subsections (c) and (d) of this section do not apply to projects for which the Secretary has issued a letter of intent or entered into a full funding grant agreement before the date of enactment of the Federal Public Transportation Act of 2003.

"(f) LETTERS OF INTENT, FULL FUNDING GRANT AGREEMENTS, AND EARLY SYSTEMS WORK AGREEMENTS.-(1)(A) The Secretary may issue a letter of intent to an applicant announcing an intention to obligate, for a major capital project under this section, an amount from future available budget authority specified in law that is not more than the amount stipulated as the financial participation of the Secretary in the project. When a letter is issued for fixed guideway projects, the amount shall be sufficient to complete at least an operable segment.

"(B) At least 30 days before issuing a letter under subparagraph (A) of this paragraph or entering into a full funding grant agreement, the Secretary shall notify in writing the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate and the House and Senate Committees on Appropriations of the proposed letter or agreement. The Secretary shall include with the notification a copy of the proposed letter or agreement as well as the evaluations and ratings for the project.

"(C) The issuance of a letter is deemed not to be an obligation under sections 1108(c) and (d), 1501, and 1502(a) of title 31, U.S.C., or an administrative commitment.
"(D) An obligation or administrative commitment may be made only when amounts are appropriated.

"(2)(A) The Secretary may make a full funding grant agreement with an applicant. The agreement shall-

"(i) establish the terms of participation by the United States Government in a project under this section;

"(ii) establish the maximum amount of Government financial assistance for the project;

"(iii) cover the period of time for completing the project, including a period extending beyond the period of an authorization; and

"(iv) make timely and efficient management of the project easier according to the law of the United States.

"(B) An agreement under this paragraph obligates an amount of available budget authority specified in law and may include a commitment, contingent on amounts to be specified in law in advance for commitments under this paragraph, to obligate an additional amount from future available budget authority specified in law. The agreement shall state that the contingent commitment is not an obligation of the Government. Interest and other financing costs of efficiently carrying out a part of the project within a reasonable time are a cost of carrying out the project under a full funding grant agreement, except that eligible costs may not be more than the cost of the most favorable financing terms reasonably available for the project at the time of borrowing. The applicant shall certify, in a way satisfactory to the Secretary, that the applicant has shown reasonable diligence in seeking the most favorable financing terms. The amount stipulated in an agreement under this paragraph for a fixed guideway project shall be sufficient to complete at least an operable segment.

"(3)(A) The Secretary may make an early systems work agreement with an applicant if a record of decision under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) has been issued on the project and the Secretary finds there is reason to believe-

"(i) a full funding grant agreement for the project will be made; and

"(ii) the terms of the work agreement will promote ultimate completion of the project more rapidly and at less cost.

"(B) A work agreement under this paragraph obligates an amount of available budget authority specified in law and shall provide for reimbursement of preliminary costs of carrying out the project, including land acquisition, timely procurement of system elements for which specifications are decided, and other activities the Secretary decides are appropriate to make efficient, long-term project management easier. A work agreement shall cover the period of time the Secretary considers appropriate. The period may extend beyond the period of current authorization. Interest and other financing costs of efficiently carrying out the work agreement within a reasonable time are a cost of carrying out the agreement, except that eligible costs may not be more than the cost of the most favorable financing terms reasonably available for the project at the time of borrowing. The applicant shall certify, in a way satisfactory to the Secretary, that the applicant has shown reasonable diligence in seeking the most favorable financing terms. If an applicant does not carry out the project for reasons within the control of the applicant, the applicant shall repay all Government payments made under the work agreement plus reasonable interest and penalty charges the Secretary establishes in the agreement.

"(4)(A) The total estimated amount of future obligations of the Government and contingent commitments to incur obligations covered by all outstanding letters of intent, full funding grant agreements, and early systems work agreements may be not more than the greater of the amount authorized under section 5338(b) of this title for major capital investment projects or an amount equivalent to the last 3 fiscal years of funding authorized under section 5338(b)(3)(C) for major capital investment projects, less an amount the Secretary reasonably estimates is necessary for grants under this section not covered by a letter. The total amount covered by new letters and contingent commitments included in full funding grant agreements and early systems work agreements may be not more than a limitation specified in law.

"(B) Future obligations of the Government and contingent commitments made against the contingent commitment authority under section 3032(g)(2) of the Intermodal Surface Transportation Efficiency Act of 1991, Public Law 102-240, as amended, for the San Francisco BART to the Airport project for fiscal years 2002, 2003, 2004, 2005 and 2006 shall be charged against section 3032(g)(2) of that Act.

"(g) GOVERNMENT'S SHARE OF NET PROJECT COST.-(1) Based on engineering studies, studies of economic feasibility, and information on the expected use of equipment or facilities, the Secretary shall estimate the net project cost. A grant for the project shall be for 50 percent of the net capital project cost, unless the grant recipient requests a lower grant percentage.

"(2) The remainder--

"(A) shall be from an undistributed cash surplus, a replacement or depreciation cash fund or reserve, or new capital; and

"(B) may include up to 30 percent from amounts appropriated to or made available to a department or agency of the Federal Government that are eligible to be expended for transportation.

"(3) In addition to amounts allowed pursuant to paragraph (1) of this subsection, a planned extension to a fixed guideway system may include the cost of rolling stock previously purchased if the applicant satisfies the Secretary that only amounts other than amounts of the Government were used and that the purchase was made for use on the extension. A refund or reduction of the remainder may be made only if a refund of a proportional amount of the grant of the Government is made at the same time.

"(4) The prohibitions on the use of funds for matching requirements under section 403(a)(5)(C)(vii) of the Social Security Act shall not apply to amounts allowed pursuant to paragraph (2) of this subsection.

"(5) This subsection does not apply to projects for which the Secretary of Transportation has issued a letter of intent or entered into a full funding grant agreement before the date of enactment of the Federal Public Transportation Act of 2003.

"(h) FISCAL CAPACITY CONSIDERATIONS.- If the Secretary gives priority consideration to financing projects that include more than the non-Government share required under subsection (g) of this section, the Secretary may also give consideration to 'high,' 'medium-high,' or 'medium' projects sponsored by grant applicants and State and local governments of constrained fiscal capacity in selecting projects for full funding grant agreements.

"(i) PRELIMINARY ENGINEERING.-Not more than 8 percent of the amounts made available in each fiscal year to carry out this section may be available for preliminary engineering.

"(j) UNDERTAKING PROJECTS IN ADVANCE.-(1) The Secretary may pay the Government's share of the net capital project cost to a State or local governmental authority that carries out any part of a project described in this section without the aid of amounts of the Government and according to all applicable procedures and requirements if-

"(A) the State or local governmental authority applies for the payment;

"(B) the Secretary approves the payment; and

"(C) before carrying out the part of the project, the Secretary approves the plans and specifications for the part in the same way as other projects under this section.

"(2) The cost of carrying out part of a project includes the amount of interest earned and payable on bonds issued by the State or local governmental authority to the extent proceeds of the bonds are expended in carrying out the part. However, the amount of interest under this paragraph may not be more than the most favorable interest terms reasonably available for the project at the time of borrowing. The applicant shall certify, in a manner satisfactory to the Secretary, that the applicant has shown reasonable diligence in seeking the most favorable financial terms.

"(3) The Secretary shall consider changes in capital project cost indices when determining the estimated cost under paragraph (2) of this subsection.

"(k) USE OF DEOBLIGATED AMOUNTS.-An amount available under this section that is deobligated may be used for any purpose under this section.

"(l) REPORTS.- (1) Not later than the first Monday in February of each year, the Secretary shall submit to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate, as well as the Subcommittee on Transportation of the Committees on Appropriations of both Houses, a report that may include--

"(A) an allocation of amounts to be available to finance grants for capital investment projects among applicants for these amounts;

"(B) an assessment of projects for funding based on the evaluations and ratings and on existing commitments and anticipated funding levels for the next 3 fiscal years; and

"(C) detailed ratings and evaluations on each project listed.

"(2) The Secretary shall submit a report to Congress on the first Monday in February, the first Monday in June, and the first Monday in October each year that includes:

"(A) a summary of the ratings of all applicant's capital investment projects;

"(B) detailed ratings and evaluations on each applicant project with significant changes to the finance or project proposal or has completed alternatives or preliminary engineering since the date of the last report; and

"(C) all relevant information that support the evaluation and rating of each updated project, including a summary of each updated project's financial plan.

"(m) PROJECT DEFINED.-In this section, the term 'major capital investment project' with respect to a new fixed guideway system or extension to an existing fixed guideway system, means a minimum operable segment of the project.".

SEC. 3013. RESEARCH, DEVELOPMENT, DEMONSTRATION, AND DEPLOYMENT PROJECTS. [Analysis]

"(a) IN GENERAL.--Section 5312 is amended--

(1) in subsection (a),

(A) by striking "or contracts" and inserting ", contracts, cooperative agreements, or other transactions";

(B) by striking "help reduce urban transportation needs,";

(D) by striking "and demonstration projects related" and inserting ", demonstration or deployment projects, or evaluation of technology of national significance";

(2) by striking subsections (b) and (c);

(3) by redesignating subsections (d) and (e) as (b) and (c), respectively.

(4) in subsection (b)(2), as redesignated, by striking "other agreements" and inserting "other transactions";

(5) in subsection (b)(3), as redesignated, by striking "50" and inserting "80";

(6) in subsection (b)(4), by adding the following sentence at the end:

"The evaluation criteria shall include consideration of a share of consortium contributions to the overall research costs.";

(7) in subsection (c)(2), as redesignated, by striking "and" and inserting "or" before "private"; and

(8) in subsections (b)(5) and (c)(3), as redesignated, by striking "within the Mass Transit Account of the Highway Trust Fund".

(b) CONFORMING AMENDMENTS.--(1) Section 5312 is amended by striking the section heading and inserting the following:
"§ 5312. Research, development, demonstration, and deployment projects".

(2) The item relating to section 5312 in the table of sections is amended to read as follows:
"5312. Research, development, demonstration, and deployment projects.".

SEC. 3014. COOPERATIVE RESEARCH GRANT PROGRAM. [Analysis]

(a) IN GENERAL.--Section 5313 is amended-

(1) in subsection (a) by-

(A) striking "(1)";

(B) striking "paragraphs (1) and (2)(C)(ii) of section 5338(d) and inserting "5338(a)(2)(F)(iii)(I) and (III)"; and

(2) by striking subsection (b); and

(3) in subsection (c), by striking "subsection (a) of".

(b) CONFORMING AMENDMENTS.--(1) Section 5313 is amended by striking the section heading and inserting the following:
"§ 5313. Cooperative research program".

(2) The item relating to section 5313 in the table of sections is amended to read as follows:
"5313. Cooperative research program.".

SEC. 3015. NATIONAL RESEARCH PROGRAMS. [Analysis]

(a) IN GENERAL.--Section 5314 is amended-

(1) in the section heading, by striking "planning and";

(2) in subsection (a)(1), by-

(A) striking "subsections (d) and (h)(7) of section 5338" and inserting "section 5338(a)(2)(F)";

(B) striking "and contracts" and inserting ", contracts, cooperative agreements, or other transactions"; and

(3) in the first sentence of subsection (a)(3), by striking all that follows "chapter";

(4) by striking subsection (a)(4)(B);

(5) by redesignating subsection (a)(4)(C) as subsection (a)(4)(B); and

(6) in subsection (b), by striking "or contract" and all that follows in the first sentence, and inserting ", contract, cooperative agreement, or other transaction under subsection (a) of this section or section 5312."

(b) CONFORMING AMENDMENTS.--The item relating to section 5314 in the table of sections is amended to read as follows:
"5314. National research programs.".

SEC. 3016. NATIONAL TRANSIT INSTITUTE. [Analysis]

Section 5315 is amended-

(1) in subsection (a) -

(A) by striking "public mass transportation" and inserting "public transportation" each place it appears;

(B) by striking "mass" after "Government-aid" and inserting "public"; and

(C) in paragraphs (1), (6), (7), and (10) by striking "mass" each place it appears before "transportation" and inserting "public";

(2) by striking subsection (b);

(3) by redesignating subsections (c) and (d) as subsections (b) and (c), respectively; and

(4) in subsection (c), as redesignated, by striking "mass" each place it appears.

SEC. 3017. BUS TESTING FACILITY. [Analysis]

Section 5318 is amended-

(1) by revising subsection (a) to read as follows:

"(a) FACILITY.--The Secretary of Transportation shall maintain one facility for testing a new bus model for maintainability, reliability, safety, performance (including braking performance), structural integrity, fuel economy, emissions, and noise.";

(2) in subsection (d), by striking "section 5309(m)(1)(C)" and inserting section 5338(a)(2)(I); and

(3) by revising subsection (e) to read as follows:

"(e) ACQUIRING NEW BUS MODELS.--Amounts appropriated or made available under this chapter may be obligated or expended to acquire a new bus model only if a bus of that model has been tested at the facility maintained by the Secretary under subsection (a).".

SEC. 3018. BICYCLE FACILITIES. [Analysis]

Section 5319 is amended by striking "5309(h)," and inserting " 5309(g),".

SEC. 3019. SUSPENDED LIGHT RAIL TECHNOLOGY PILOT PROJECT. [Analysis]

Section 5320 is repealed.

SEC. 3020. GENERAL PROVISIONS ON ASSISTANCE. [Analysis]

Section 5323 is amended-

(1) In paragraph (a)(1), by-

(A) striking "private mass transportation company" each place it appears and inserting "private company engaged in public transportation";

(B) striking "mass transportation equipment or a mass transportation facility" and inserting "a public transportation facility or equipment"; and

(2) in subsection (a)(1)(B), by striking "private mass transportation companies" and inserting "private companies engaged in public transportation";

(3) in subsection (b),

(A) in paragraph (1),

(i) by striking "or loan"; and

(ii) by striking "a certificate of the applicant" and inserting "in the environmental record for the project evidence"; and

(B) in subparagraph (A) of paragraph (1), by striking "a public hearing with adequate prior notice" and inserting ""public review and comment on the project;

"(B) held a public hearing on the project if it affects significant economic, social, or environmental interests;";

(4) in paragraph (2), by striking the last sentence;

(5) by revising subsection (c) to read as follows:

"(c) NEW TECHNOLOGY.-A grant for financial assistance under this chapter for new technology, including innovative or improved products, techniques, or methods is subject to the requirements of section 5309 of this title to the extent the Secretary considers appropriate.";

(6) in subsection (d),

(A) by revising paragraph (2) to read as follows:

"(2) The Secretary may waive paragraph (1) of this subsection if the Secretary finds that the provision of intercity charter bus transportation service by the applicant, governmental authority, or publicly owned operator is necessary to meet the transportation needs of the elderly and individuals with disabilities."; and

(B) by adding at the end the following paragraph:

"(3) On receiving a complaint about a violation of the agreement required under paragraph (1), the Secretary shall investigate and decide whether a violation has occurred. If the Secretary decides that a violation has occurred, the Secretary shall correct the violation under terms of the agreement. In addition to any remedy specified in the agreement, the Secretary shall bar a recipient or an operator from receiving Federal transit assistance in an amount the Secretary deems appropriate.";

(7) by striking subsection (e);

(8) by redesignating subsection (f) as (e);

(9) in subsection (e), as redesignated,--

(A) by revising paragraph (2) to read as follows:

"(2) The Secretary may waive paragraph (1) of this subsection if the Secretary finds that the provision of schoolbus transportation by the applicant, governmental authority, or publicly owned operator is necessary to meet the transportation needs of students with disabilities."; and

(B) by adding at the end the following paragraph:

"(3) If the Secretary finds that an applicant, governmental authority, or publicly owned operator has violated the agreement required under paragraph (1) of this subsection, the Secretary shall bar a recipient or an operator from receiving Federal transit assistance in an amount the Secretary deems appropriate.";

(10) by revising subsection (f) to read as follows:

"(f) BOND PROCEEDS ELIGIBLE FOR LOCAL SHARE.-(1) Notwithstanding any other provision of law, a recipient of assistance under sections 5307 or 5309 of this chapter, may use the proceeds from the issuance of revenue bonds as part of the local matching funds for a capital project.

"(2) The Secretary may reimburse an eligible recipient for deposits of bond proceeds in a debt service reserve that recipient established pursuant to section 5302(a)(1a)(K) of this title from amounts made available to the recipient under sections 5307 or 5309 of this title.";

(11) in subsection (g), by--

(A) striking "(f)" and inserting "(e)";

(B) striking "103(e)(4) and" in the first and second sentence and inserting "133"; and

(12) by revising subsection (h) to read as follows:

"(h) TRANSFER OF LANDS OR INTERESTS IN LANDS OWNED BY THE UNITED STATES.-(1) If the Secretary determines that any part of the lands or interests in lands owned by the United States and made available as a result of a military base closure is necessary for transit purposes eligible under this chapter, including corridor preservation, the Secretary shall file with the Secretary of the Department supervising the administration of such lands or interests in lands a map showing the portion of such lands or interests in lands which is desired to be transferred for public transportation purposes.

"(2) If within four months after such filing, the Secretary of such Department shall not have certified to the Secretary that the proposed appropriation of such land is contrary to the public interest or inconsistent with the purposes for which such land has been reserved, or shall have agreed to the appropriation and transfer under conditions which the Secretary of such Department deems necessary for the adequate protection and utilization of the reserve, then such land and materials may be appropriated and transferred to a State, or local government, or public transportation operator for such purposes and subject to the conditions so specified.

"(3) If at any time such lands are no longer needed for public transportation purposes, notice shall be given by the State, or local government, or public transportation operator that received the land, to the Secretary, and such lands shall immediately revert to the control of the Secretary of the Department from which the land was originally transferred.";

(13) in subsection (j),

(A) by revising paragraph (1) to read as follows:

"(1)(A) The Secretary may obligate an amount that may be appropriated to carry out this chapter for a project only if the steel, iron, rolling stock, and components and subcomponents of the rolling stock used in the project are produced in the United States.

"(B) When procuring rolling stock (including train control, communication, and traction power equipment) under this chapter-

"(i) the cost of components and subcomponents produced in the United States shall be more than 60 percent of the cost of all components of the rolling stock; and

"(ii) final assembly of the rolling stock shall occur in the United States.

"(C) In this subsection, labor costs involved in final assembly are not included in calculating the cost of components.";

(B) in paragraph (2)(B),-

(i) by striking "and goods" and inserting "rolling stock, and the components and subcomponents of rolling stock"; and

(ii) by adding "or" at the end;

(D) by redesignating paragraph (2)(D) as paragraph (2)(C);

(E) by striking paragraph (3) and redesignating paragraphs (4), (5), (6), and (7) as paragraphs (3), (4), (5), and (6), respectively;

(F) in paragraph (4), as redesignated, by striking "Intermodal Surface Transportation Efficiency Act of 1991 (Public Law 102-240, 105 Stat. 1914" and inserting "Safe, Accountable, Flexible, and Efficient Transportation Equity Act of 2003";

(14) by revising subsection (l) to read as follows:

"(l) RELATIONSHIP TO OTHER LAWS.-Section 1001 of title 18, U.S.C., applies to a certificate, submission, or statement provided under this chapter. The Secretary may terminate financial assistance under this chapter and seek reimbursement directly, or by offsetting amounts, available under this chapter, when a false or fraudulent statement or related act within the meaning of section 1001 is made in connection with a Federal transit program.";

(15) in subsection (m), by inserting at the end the following:

"Requirements to perform preaward and postdelivery reviews of rolling stock purchases to ensure compliance with subsection (j) of this section do not apply to private nonprofit organizations or to grantees serving areas with fewer than one million people.";

(16) in subsection (o) by striking "the Transportation Infrastructure Finance and Innovation Act of 1998" and inserting "23 U.S.C. 188".

SEC. 3021. SPECIAL PROVISIONS FOR CAPITAL PROJECTS. [Analysis]

(a) IN GENERAL.--Section 5324 is amended to read as follows:
"§ 5324. Special provisions for capital projects

"(a) REAL PROPERTY AND RELOCATION SERVICES.-Whenever real property is acquired and furnished as a required contribution incident to a project, the Secretary may not approve the application for financial assistance unless the applicant has made all payments and provided all assistance and assurances as are required of a State agency under Sections 210 and 305 of the Uniform Relocation Assistance and Real Property Acquisition Policies Act, as amended (Uniform Act). The Secretary must be advised of specific references to any State law that are believed to be an exception to Sections 301 or 302 of the Uniform Act.

"(b) ADVANCE REAL PROPERTY ACQUISITIONS.-(1) The Secretary may participate in the acquisition of real property prior to completion of the environmental reviews for any project that may use the property if the Secretary determines that external market forces are jeopardizing the potential use of the property for the project, given any of the following conditions-

"(A) there are offers on the open real estate market to convey that property for a use or uses incompatible with the project under study;

"(B) there is an imminent threat of development or redevelopment of the property for use or uses incompatible with the project under study;

"(C) recent appraisals reflect a rapid increase in the fair market value of the property;

"(D) the property, because it is located near an existing transportation facility, is likely to be developed, but also likely to be needed for a future transportation improvement; or

"(E) the property owner can demonstrate that, for health, safety, or financial reasons, retaining ownership of the property poses an undue hardship on the owner in comparison to other affected property owners and requests the acquisition to alleviate that hardship.

"(2) Property acquired in accordance with this subsection may not be developed in anticipation of the project until the Secretary has complied with the National Environmental Policy Act and the applicable provisions of the Department of Transportation Act for protection of publicly owned park lands, wildlife and waterfowl refuges, and historic sites.

"(3) The Secretary shall limit the size and number of properties acquired in accordance with this subsection as necessary to avoid any prejudice to the Secretary's objective evaluation of project alternatives.

"(4) An acquisition undertaken pursuant to this section shall be considered to be an exempt project under section 176 of the Clear Air Act and its implementing regulations."

"(c) RAILROAD CORRIDOR PRESERVATION.-(1) The Secretary may assist an applicant in the acquisition of a pre-existing railroad right-of-way prior to completion of the environmental reviews for any project that may use the right-of-way if the acquisition is otherwise permitted under Federal law; furthermore, the Secretary may establish restrictions on such an acquisition as the Secretary deems necessary and appropriate.

"(2) Railroad right-of-way acquired in accordance with this subsection may not be developed in anticipation of the project until the Secretary has complied with the National Environmental Policy Act and the applicable provisions of the Department of Transportation Act for protection of publicly owned park lands, wildlife and waterfowl refuges, and historic sites.

"(d) CONSIDERATION OF ECONOMIC, SOCIAL, AND ENVIRONMENTAL INTERESTS.-(1) In carrying out section 5301(e) of this chapter, the Secretary shall cooperate and consult with the Secretaries of the Interior, Housing and Urban Development, and the Administrator of the Environmental Protection Agency on each project that may have a substantial impact on the environment.

"(2) In performing environmental reviews, the Secretary shall consider the public comments on a project submitted under section 5323(b) of this title and ensure that an adequate opportunity to present views was given to all parties having a significant economic, social, or environmental interest in the project, and that the project application includes a record of-

"(A) the environmental impact of the proposal;

"(B) adverse environmental effects that cannot be avoided;

"(C) alternatives to the proposal; and

"(D) irreversible and irretrievable impacts on the environment.

"(3)(A) The Secretary may approve an application for financial assistance for a capital project in accordance with this chapter only if the Secretary makes written findings, after reviewing the environmental record included with the project application, that-

"(i) an adequate opportunity to present views was given to all parties having a significant economic, social, or environmental interest;

"(ii) the preservation and enhancement of the environment and the interest of the community in which the project is located were considered; and

"(iii) no adverse environmental effect is likely to result from the project, or no feasible and prudent alternative to the effect exists and all reasonable steps have been taken to minimize the effect.

"(B) The Secretary's findings under subparagraph (A) of this paragraph shall be made a matter of public record.".

(b) CONFORMING AMENDMENT.-The item relating to section 5324 in the table of sections for chapter 53 is amended to read as follows:
"5324. Special provisions for capital projects.".

SEC. 3022. CONTRACT REQUIREMENTS. [Analysis]

(a) IN GENERAL.-- Section 5325 is amended-

(1) by revising subsection (a) to read as follows:

"(a) COMPETITION. -Recipients of Federal assistance under this chapter shall conduct all procurement transactions in a manner providing full and open competition as determined by the Secretary.";

(2) by revising subsection (b) to read as follows:

"(b) ARCHITECTURAL, ENGINEERING, AND DESIGN CONTRACTS. -A contract or requirement for program management, architectural engineering, construction management, a feasibility study, and preliminary engineering, design, architectural, engineering, surveying, mapping, or related services for a project for which Federal assistance is provided under this chapter shall be awarded in the same way as a contract for architectural and engineering services is negotiated under chapter 11 of title 40, U.S.C., or an equivalent qualifications-based requirement of a State. This subsection does not apply to the extent a State has adopted or adopts by law a formal procedure for procuring those services. When awarding such contracts, recipients of assistance under this chapter shall maximize efficiencies of administration by accepting non-disputed audits conducted by other governmental agencies as follows:

"(1) Any contract or subcontract awarded under this chapter shall be performed and audited in compliance with cost principles contained in the Federal Acquisition Regulation, part 31 of title 48, Code of Federal Regulations.

"(2) Instead of performing its own audits, a recipient of funds under a contract or subcontract awarded under this chapter shall accept indirect cost rates established in accordance with the Federal Acquisition Regulations for one-year applicable accounting periods by a cognizant Federal or State government agency, if such rates are not currently under dispute.

"(3) Once a firm's indirect cost rates are accepted under this paragraph, the recipient of the funds shall apply such rates for the purposes of contract estimation, negotiation, administration, reporting, and contract payment, and shall not be limited by administrative or de facto ceilings.

"(4) A recipient of funds requesting or using the cost and rate data described in paragraph (3) shall notify any affected firm before such request or use. Such data shall be confidential and shall not be accessible or provided, in whole or in part by the group of agencies sharing cost data under this paragraph, except by written permission of the audited firm. If prohibited by law, such cost and rate data shall not be disclosed under any circumstances.";

(3) by inserting new subsections (d) through (h), after subsection (c), to read as follows:

"(d) DESIGN-BUILD SYSTEM PROJECTS. - (1) 'design-build system project' means a project under which a recipient enters into a contract with a seller, firm, or consortium of firms to design and build a public transportation system or an operable segment thereof that meets specific performance criteria. Such project may also include an option to finance, or operate for a period of time, the system or segment or any combination of designing, building, operating, or maintaining such system or segment.

"(2) Government financial assistance under this chapter may be made available for the capital costs of a design-build system project after the recipient complies with Government requirements.

"(e) MULTIYEAR ROLLING STOCK.-(1) A recipient procuring rolling stock with Government financial assistance under this chapter may make a multiyear contract, including options, to buy not more than 5 years of requirements for rolling stock and replacement parts.

"(2) The Secretary shall allow a recipient to act on a cooperative basis to procure rolling stock in compliance with this subsection and other Government procurement requirements.

"(f) ACQUIRING ROLLING STOCK. -A recipient of financial assistance under this chapter may enter into a contract to expend that assistance to acquire rolling stock -

"(1) based on-

"(A) initial capital costs; or

"(B) performance, standardization, life cycle costs, and other factors; or

"(2) with a party selected through a competitive procurement process.

"(g) EXAMINATION OF THE RECORDS.-Upon request, the Secretary and the Comptroller General, or any of their representatives, shall have access to and the right to examine and inspect all records, documents, papers, including contracts, related to a projects for which a grant is made under this chapter.

"(h) GRANT PROHIBITIONS.-A grant may not be used to support a procurement that uses an exclusionary or discriminatory specification.".

(b) CONFORMING AMENDMENTS. -Chapter 53 of title 49, United States Code, is amended by-

(1) repealing section 5326; and

(2) striking "5326. Special Procurements." in the table of sections for chapter 53.

SEC. 3023. HUMAN RESOURCE PROGRAMS. [Analysis]

(a) IN GENERAL-- Section 5322 is amended--

(1) by inserting "(a) IN GENERAL.--" before the beginning of the first sentence of the section; and

(2) by adding the following at the end:

"(b) GRANTS TO HIGHER LEARNING INSTITUTIONS.--(1) The Secretary (or the Secretary of Housing and Urban Development when required by section 5334(i) of this title) may make grants to nonprofit institutions of higher learning--

"(A) to conduct competent research and investigations into the theoretical or practical problems of urban transportation; and

"(B) to train individuals to conduct further research or obtain employment in an organization that plans, builds, operates, or manages an urban transportation system.

"(2) Research and investigations under this subsection include--

"(A) the design and use of urban public transportation systems and urban roads and highways;

"(B) the interrelationship between various modes of urban and interurban transportation;

"(C) the role of transportation planning in overall urban planning;

"(D) public preferences in transportation;

"(E) the economic allocation of transportation resources; and

"(F) the legal, financial, engineering, and esthetic aspects of urban transportation.

"(3) When making a grant under this subsection, the Secretary shall give preference to an institution that brings together knowledge and expertise in the various social science and technical disciplines related to urban transportation problems.

"(c) FELLOWSHIPS.--(1) The Secretary may make grants to States, local governmental authorities, and operators of public transportation systems to provide fellowships to train personnel employed in managerial, technical, and professional positions in the mass transportation field.

"(2) A fellowship under this subsection may be for not more than one year of training in an institution that offers a program applicable to the public transportation industry. The recipient of the grant shall select an individual on the basis of demonstrated ability and for the contribution the individual reasonably can be expected to make to an efficient public transportation operation. A grant for a fellowship may not be more than the lesser of $65,000 or 75 percent of--

"(A) tuition and other charges to the fellowship recipient;

"(B) additional costs incurred by the training institution and billed to the grant recipient; and

"(C) the regular salary of the fellowship recipient for the period of the fellowship to the extent the salary is actually paid or reimbursed by the grant recipient.".

"(d) OTHER GRANTS.-- The Secretary may make grants to State and local governmental authorities for projects that will use innovative techniques and methods in managing and providing public transportation.

SEC. 3024. PROJECT MANAGEMENT OVERSIGHT AND REVIEW. [Analysis]

(a) PROJECT MANAGEMENT PLAN REQUIREMENTS.-Section 5327(a) is amended-

(1) by striking "and" at the end of paragraph 11;

(2) in paragraph 12, by striking the "." and inserting "; and"; and

(3) by adding after paragraph (12) the following:

"(13) safety and security management.".

(b) LIMITATIONS ON USE OF AVAILABLE AMOUNTS.-Section 5327(c) is amended-

(1) in paragraph (1),

(A) by striking ".5" and inserting "1";

(B) by striking "5307, 5309, or 5311 of this title, an interstate transfer mass transportation project under section 103(e)(4) of title 23 as in effect on September 30, 1991," and inserting "5307-5311, 5316, or 5317 of this title,";

(D) by striking "a major project" and inserting "major projects"; and

(E) by striking "section 5307, 5309, 5311, or 103(e)(4)" and inserting "sections 5307-5311, 5316, 5317,";

(2) in paragraph (2), by inserting "and security" after "safety"; and

(3) by redesignating paragraph (3) as (4) and inserting a new paragraph (3), as follows:

"(3) The Secretary shall deduct a sum in an amount that the Secretary determines necessary to administer this section from the amounts made available under paragraph (1) of this subsection. These funds shall be in addition to any other funds made available for these purposes, and shall remain available until expended.".

SEC. 3025. PROJECT REVIEW. [Analysis]

Section 5328 is repealed.

SEC. 3026. INVESTIGATIONS OF SAFETY AND SECURITY RISK. [Analysis]

(a) IN GENERAL.--Section 5329 is amended to read as follows:
"§ 5329. Investigation of safety and security risks

"The Secretary may conduct investigations into safety and security risks associated with a condition in equipment, a facility, or an operation financed under this chapter to establish the nature and extent of the condition and how to eliminate, mitigate, or correct it. If the Secretary establishes that a safety or security risk warrants further protective measures, the Secretary shall require the local governmental authority receiving amounts under this chapter to submit a plan for eliminating, mitigating, or correcting it. Any such plan relating to security risks shall be developed in consultation with the Secretary of Homeland Security. Financial assistance under this chapter, in an amount to be determined by the Secretary, may be withheld until a plan is approved and carried out.".

(b) CONFORMING AMENDMENT.-The item relating to section 5329 in the table of sections for chapter 53 is amended to read as follows:
"5329. Investigation of safety and security risks.".

SEC. 3027. STATE SAFETY OVERSIGHT. [Analysis]

(a) IN GENERAL.--Section 5330 is amended-

(1) by striking the heading "Withholding Amounts for Noncompliance with Safety Requirements" and inserting "State Safety Oversight";

(2) in subsection (a), by striking the text and inserting the following "This section applies only to--

"(1) States that have rail fixed guideway public transportation systems not subject to regulation by the Federal Railroad Administration; and

"(2) States that are designing rail fixed guideway public transportation systems that will not be subjected to regulation by the Federal Railroad Administration.";

(3) in subsection (d) by inserting "shall ensure uniform safety standards and enforcement and" after "affected States"; and

(4) by striking subsection (f).

(b) CONFORMING AMENDMENT.--The item relating to section 5330 in the table of sections for chapter 53 is amended to read as follows:
"5330. State safety oversight.".

SEC.3028. SENSITIVE SECURITY INFORMATION. [Analysis]

Section 40119(b) is amended-

(1) in paragraph (1)(C) by striking "transportation safety" and inserting "the safety of transportation facilities or infrastructure, or transportation employees"; and

(2) by adding at the end a new paragraph (3), to read as follows:

"(3) A State or local government may not enact, enforce, prescribe, issue, or continue in effect any law, regulation, standard, or order to the extent it is inconsistent with this section or regulations prescribed under this section.".

SEC. 3029. TERRORIST ATTACKS AND OTHER ACTS OF VIOLENCE AGAINST PUBLIC TRANSPORTATION SYSTEMS. [Analysis]

(a) IN GENERAL.--Section 1993 of title 18, U.S.C., is amended-

(1) by striking "mass" in each place it appears before "transportation" and inserting "public";

(2) in subsection (a)(5), by inserting "controlling," after "operating"; and

(3) in subsection (c)(5), by striking "5302(a)(7)" and inserting "5302(a)".

(b) CONFORMING AMENDMENT.--The item related to section 1993 in the table of contents for chapter 97 of title 18, U.S.C. is amended to read as follows:
"1993. Terrorist attacks and other acts of violence against public transportation systems."

SEC. 3030. CONTROLLED SUBSTANCES AND ALCOHOL MISUSE TESTING. [Analysis]

(a) DEFINITIONS.-Section 5331(a)(3) is amended by inserting after "title" the following: ", or sections 2303a, 7101(i), 7302(e) of title 46, United States Code. The Secretary may also decide that a form of public transportation is covered adequately, for employee alcohol and controlled substances testing purposes, under the alcohol and controlled substance statutes or regulations of an agency within the Department of Transportation or other Federal agency.".

(b) REGULATIONS.-Section 5331(f) is amended by striking paragraph (3).

SEC. 3031. EMPLOYEE PROTECTIVE ARRANGEMENTS [Analysis]

Section 5333(b)(1) is amended by striking "5318(d), 5323(a)(1), (b), (d), and (e), 5328, 5337, and 5338(b)" each place it appears and inserting "5316-5318, 5323(a)(1), (b), and (c), 5337, and 5338(b)(3)(C)".

SEC. 3032. ADMINISTRATIVE PROCEDURES. [Analysis]

Section 5334 is amended-

(1) in subsection (a),

(A) by striking "and" at the end of paragraph (9);

(B) by striking the period at the end of paragraph (10) and inserting "; and"; and

"(11) issue regulations as necessary to carry out the purposes of this chapter.";

(2) by redesignating subsections (b), (c), (d), (e), (f), (g), (h), (i), and (j) as subsections (c), (d), (e), (f), (g), (h), (i), (j), and (k);

(3) by adding a new subsection (b) after subsection (a), to read as follows:

"(b) PROHIBITIONS AGAINST REGULATING OPERATIONS AND CHARGES.- Except as directed by the President for purposes of national defense or in the event of a national or regional emergency, the Secretary may not regulate the operation, routes, or schedules of a public transportation system for which a grant is made under this chapter, nor may the Secretary regulate the rates, fares, tolls, rentals, or other charges prescribed by any public or private transportation provider; provided, however, that nothing in this subsection shall prevent the Secretary from requiring a recipient of funds under this chapter to comply with the terms and conditions of its Federal assistance agreement."; and

(4) in subsection (j)(1), as redesignated,

(A) by striking "carry" and inserting "advise and assist the Secretary in carrying"; and

(B) by striking "and (b)(1)" and insert "5322(b)(1)".

SEC. 3033. REPORTS AND AUDITS. [Analysis]

Section 5335 is amended--

(1) in subsection (a), by--

(A) striking "(1)"; and

(B) striking "(2)" and inserting "(b) REPORTING AND UNIFORM SYSTEMS.--"; and

(2) by striking subsection (b).

SEC. 3034. APPORTIONMENTS OF APPROPRIATIONS FOR FORMULA GRANTS. [Analysis]

(a) IN GENERAL.-Section 5336 is amended by--

(1) striking subsection (d);

(2) striking subsection (k);

(3) redesignating subsections (a) through (c) as subsections (b) through (d), respectively; and

(4) adding a new subsection (a) as follows:

"(a) APPORTIONMENT OF ALLOCATIONS.- Of the amounts allocated under section 5338(a)(2)(P) of this title--

(1) the following percentages shall be apportioned to each urbanized area in accordance with subsection (k) of this section:

"(A) One percent in fiscal year 2004.

"(B) Three percent in fiscal year 2005.

"(C) Five percent in fiscal year 2006.

"(D) Seven percent in fiscal year 2007.

"(E) Nine percent in fiscal year 2008.

"(F) Ten percent in every fiscal year thereafter.

"(2) the remaining portion shall be apportioned to each urbanized area in accordance with subsections (b) through (d) of this section.".

(b) BASED ON URBANIZED AREA POPULATION.- Subsection (b), as redesignated, is amended-

(1) by striking "Of the amount made available or appropriated under section 5338(a) of this title" and inserting "Of the amount to be apportioned under subsection (a)(2) of this section"; and

(2) in paragraph (2), by striking "subsections (b) and (c)" and inserting "subsections (c) and (d)".

(c) BASED ON FIXED GUIDEWAY REVENUE VEHICLE-MILES, ROUTE-MILES, AND PASSENGER-MILES.-Subsection (c)(2), as redesignated, is amended by striking "subsection (a)(2)" and inserting "subsection (b)(2)".

(d) BASED ON BUS REVENUE VEHICLE-MILES AND PASSENGER-MILES.- Subsection (d), as redesignated, is amended by striking "subsection (a)(2)" and inserting "subsection (b)(2)".

(e) DATE OF APPORTIONMENT.-Subsection (e)(1) is amended by striking "subsections (a) and (h)(2) of section 5338" and inserting "section 5338(a)(2)(P)".

(f) TRANSFERS OF APPORTIONMENTS.-Subsection (g) is amended by striking "subsection (a)(1)" and inserting "subsection (b)(1)" each time it appears.

(g) APPORTIONMENT BASED ON INCENTIVE FACTORS.-Section 5336 is amended by adding a new subsection (k) as follows:

"(k) APPORTIONMENT BASED ON INCENTIVE FACTORS.- (1) Of the amounts apportioned under subsection (a)(1) of this section, the Secretary may use the following amounts to make grants to establish data collection systems capable of collecting the data in paragraph (3) of this subsection:

"(A) $25,000,000 in fiscal year 2004.

"(B) $15,000,000 in fiscal year 2005.

"(C) $5,000,000 in fiscal year 2006.

"(2) Amounts under paragraph (1) of this subsection not obligated within three years following the end of the fiscal year in which those amounts became available shall be available for apportionment under paragraph (3) of this subsection.

"(3) The remaining amounts to be apportioned under subsection (a)(1) of this section shall be apportioned by a formula determined by the Secretary that distributes funds based on increases in public transportation patronage.

"(4) In apportioning funds under this subsection, the Secretary may consider the efficiency of service provision in the urbanized area.";

"(5) The Secretary shall not apportion any amounts under this subsection to an urbanized area that experiences a significant decline, as determined by the Secretary, in public transportation patronage by elderly individuals, individuals with disabilities, or low income persons."

SEC. 3035. APPORTIONMENTS BASED ON FIXED GUIDEWAY FACTORS [Analysis]

(a) SECTION HEADING.-Section 5337 is amended by striking the section heading and inserting the following:
"§ 5337. Apportionment based on fixed guideway factors".

(b) DISTRIBUTION-The text of subsection 5337(a) before the first colon is amended to read as follows:
"Amounts made available under section 5338(a)(2)(N) of this title are apportioned as follows:";

(1) striking "section 5336(b)(2)(A)" each place it appears and inserting "section 5336(c)(2)(A)";

(2) striking subsection (e); and

(3) redesignating subsection (f) as subsection (e).

(c) CONFORMING AMENDMENT-The item relating to section 5337 in the table of sections for chapter 53 is amended to read as follows:
"5337. Apportionment based on fixed guideway factors.".

SEC. 3036. AUTHORIZATIONS. [Analysis]

The text of section 5338 is amended to read as follows:

"(a) FORMULA GRANTS AND RESEARCH.-(1) There shall be available from the Mass Transit Account of the Highway Trust Fund to carry out sections 5305, 5307, 5308, 5310-5318, 5322, 5335, 5505, and 5570-5575 of this title, and section 3038 of Public Law 105-178--

"(A) $5,615,406,000 for fiscal year 2004;

"(B) $5,727,714,000 for fiscal year 2005;

"(C) $5,846,851,000 for fiscal year 2006;

"(D) $5,978,405,000 for fiscal year 2007;

"(E) $6,126,071,000 for fiscal year 2 008; and

"(F) $6,274,935,000 for fiscal year 2009.

"(2) Of the aggregate of amounts made available under this subsection for a fiscal year,

"(A) 1.25 percent shall be available to carry out section 5305 in the fiscal year 2004;

"(B) 2 percent shall be available to carry out section 5305 in fiscal years 2005 through 2009;

"(C) the following amounts shall be available to carry out section 5335--

"(i) $3,500,000 in fiscal year 2004;

"(ii) $3,700,000 in fiscal year 2005;

"(iii) $3,900,000 in fiscal year 2006;

"(iv) $4,100,000 in fiscal year 2007;

"(v) $4,300,000 in fiscal year 2008; and

"(vi) $4,500,000 in fiscal year 2009;

"(D) $4,849,950 shall be available for grants to the Alaska Railroad for improvements to its passenger operations in lieu of receiving an apportionment under section 5336 of this title;

"(E) $6,950,000 shall be available to carry out section 3038 of the Transportation Equity Act for the 21st Century, as amended;

"(F) the following amounts shall be available to carry out transit cooperative research programs under section 5313, the National Transit Institute under section 5315, and national research programs under sections 5312, 5313, 5314, and 5322:

"(i) $43,750,000 in fiscal year 2004;

"(ii) 0.779 percent in fiscal years 2005 through 2009;

"(iii) Of the amount made available by this paragraph:

(I) 18.85 percent shall be available for carrying out transit cooperative research programs under section 5313;

"(II) 9.14 percent shall be available to carry out programs under the National Transit Institute under section 5315, including not more than $1,000,000 shall be available to carry out section 5315(a)(16);

"(III) the remainder shall be available for carrying out national research programs under sections 5312, 5313, 5314, and 5322;

"(G) $30,000,000 shall be available to carry out section 5316 for each fiscal year 2005 through 2009, based on need and supported by transportation financial feasibility studies and planning analyses;

"(H) the following amounts shall be available for the New Freedom program under section 5317 of this title:

"(i) $145,000,000 in fiscal year 2004;

"(ii) 2.582 percent in fiscal years 2005 through 2009;

"(I) the following amounts shall be available to carry out section 5318:

"(i) $3,000,000 in fiscal year 2004;

"(ii) 0.061 percent in fiscal years 2005 through 2009

"(J) $6,000,000 shall be available to carry out section 5505 of this title;

"(K) 6.4 percent shall be available to provide financial assistance for other than urbanized areas under section 5311;

"(L) 1.55 percent shall be available to provide financial assistance for services for elderly persons and persons with disabilities under section 5310

"(M) the following amounts shall be available to provide financial assistance for job access and reverse commute projects under section 5308:

"(i) $150,000,000 in fiscal year 2004; and

"(ii) 2.671 percent in fiscal years 2005 through 2009;

"(N) the following amounts shall be available to provide financial assistance for urbanized areas under section 5307 and apportioned in accordance with section 5337:

"(i) $1,214,400,000 in fiscal year 2004; and

"(ii) 21.626 percent in fiscal years 2005 through 2009; and

"(O) $75,000,000 shall be available to carry out sections 5570 through 5575 in fiscal years 2005 through 2009.

"(P) The remaining amount shall be available to provide financial assistance for urbanized areas under section 5307 and apportioned in accordance with section 5336.

"(b) MAJOR CAPITAL INVESTMENT PROGRAM GRANTS.-(1) There shall be available from the Mass Transit Account of the Highway Trust Fund to carry out sections 5305, and 5309-

"(A) $320,594,000 for fiscal year 2004;

"(B) $327,006,000 for fiscal year 2005;

"(C) $333,808,000 for fiscal year 2006;

"(D) $341,318,000 for fiscal year 2007;

"(E) $349,749,000 for fiscal year 2008; and

"(F) $358,248,000 for fiscal year 2009.

"(2) In addition to amounts made available under paragraph (1), there are authorized to be appropriated to carry out sections 5305, and 5309-

"(A) $1,213,500,000 for fiscal year 2004;

"(B) $1,236,192,000 for fiscal year 2005;

"(C) $1,261,287,000 for fiscal year 2006;

"(D) $1,289,162,000 for fiscal year 2007;

"(E) $1,321,907,000 for fiscal year 2008; and

"(F) $1,355,219,000 for fiscal year 2009.

"(3) Of the amounts made available by and appropriated under this subsection for a fiscal year,

"(A) 1.25 percent shall be available to carry out section 5305 in the fiscal year 2004;

"(B) 2 percent shall be available to carry out section 5305 in fiscal years 2005 through 2009; and

"(C) the remaining amount shall be available to carry out Major Capital Investment Grants under section 5309 of this title.

"(c) ADMINISTRATION-There are authorized to be appropriated to carry out section 5334-

"(A) $76,500,000 for fiscal year 2004;

"(B) $77,931,000 for fiscal year 2005;

"(C) $79,513,000 for fiscal year 2006;

"(D) $81,270,000 for fiscal year 2007;

"(E) $83,334,000 for fiscal year 2008; and

"(F) $85,434,000 for fiscal year 2009.

"(d) GRANTS AS CONTRACTUAL OBLIGATIONS.-(1) A grant or contract approved by the Secretary, that is financed with amounts made available under subsections (a), (b)(1), or (e) is a contractual obligation of the United States Government to pay the Government's share of the cost of the project.
"(2) A grant or contract, approved by the Secretary, that is financed with amounts made available under subsections (b)(2) or (c) is a contractual obligation of the Government to pay the Government's share of the cost of the project only to the extent that amounts are provided in advance in an appropriations Act.

"(e) REVENUE ALIGNED BUDGET AUTHORITY--(1) On October 15 of fiscal year 2006 and each fiscal year thereafter, the Secretary shall prorate an amount of funds equal to the amount determined pursuant to section 251(b)(1)(C) of the Balanced Budget and Emergency Deficit Control Act of 1985 in a portion equal to the amount available to each Federal transit program for which funds are available from the Mass Transit Account of the Highway Trust Fund under subsections (a) and (b) of this section..

"(2) AUTHORIZATION OF APPROPRIATIONS.--There are authorized to be appropriated from the Mass Transit Account of the Highway Trust Fund such sums as may be necessary to carry out this subsection for fiscal years beginning after September 30, 2005.

"(f) AVAILABILITY OF AMOUNTS.-Amounts made available by or appropriated under subsections (a), (b), and (e) shall remain available until expended.".

SEC. 3037. NATIONAL PARKS AND PUBLIC LANDS LEGACY PROJECT [Analysis]

(a) IN GENERAL.-Chapter 53 is amended by inserting after section 5315 the following:
"§ 5316. National parks and public lands Legacy Project

"(a) IN GENERAL.- (1) The Secretary of Transportation, in consultation with the Secretary of the Interior, may make a grant or enter into a contract, cooperative agreement, interagency agreement, intra-agency agreement, or other transaction to carry out a qualified project under this section to enhance the protection of America's National Parks and public lands and increase the enjoyment of those visiting the parks and public lands by ensuring access to all, including the disabled, improving conservation and park and public land opportunities in urban areas through partnering with state and local governments, and improving park and public land transportation infrastructure.

"(2) A grant, cooperative agreement, interagency agreement, intra-agency agreement, or other transaction for a qualified project under this section shall be available to finance the leasing of equipment and facilities for use in public transportation, subject to any regulation that the Secretary may prescribe limiting the grant or agreement to leasing arrangements that are more cost-effective than purchase or construction.

"(b) DEFINITIONS.-In this section-

"(1) 'eligible area' means any Federally owned or managed park, refuge, or recreational area that is open to the general public, including--

"(A) a unit of the National Park System;

"(B) a unit of the National Wildlife Refuge System;

"(C) a recreational area managed by the Bureau of Land Management; and

"(D) a recreation area managed by the Bureau of Reclamation.

"(2) 'Federal land management agency' means a Federal agency that manages an eligible area.

"(3) 'public transportation' means transportation by bus, rail, or any other publicly or privately owned conveyance that provides to the public general or special service on a regular basis, including sightseeing service.

"(4) 'qualified participant' means-

"(A) a Federal land management agency; or

"(B) a State, tribal, or local governmental authority with jurisdiction over land in the vicinity of an eligible area acting with the consent of the Federal land management agency, alone or in partnership with a Federal land management agency or other Governmental or nongovernmental participant.

"(5) 'qualified project' means a planning or capital project in or in the vicinity of an eligible area that-

"(A) is an activity described in section 5302, 5303, or 5304;

"(B) involves-

"(i) the purchase of rolling stock that incorporates clean fuel technology or the replacement of buses of a type in use on the date of enactment of this section with clean fuel vehicles; or

"(ii) the deployment of public transportation vehicles that introduce innovative technologies or methods;

"(C) relates to the capital costs of coordinating the Federal land management agency public transportation systems with other public transportation systems;

"(D) provides a nonmotorized transportation system (including the provision of facilities for pedestrians, bicycles, and nonmotorized watercraft);

"(E) provides waterborne access within or in the vicinity of an eligible area, as appropriate to and consistent with this section; or

"(F) is any other public transportation project that-

"(i) enhances the environment;

"(ii) prevents or mitigates an adverse impact on a natural resource;

"(iii) improves Federal land management agency resource management;

"(iv) improves visitor mobility and accessibility and the visitor experience;

"(v) reduces congestion and pollution (including noise pollution and visual pollution); or

"(vi) conserves a natural, historical, or cultural resource (excluding rehabilitation or restoration of a non-transportation facility).

"(6) 'Secretary' means the Secretary of Transportation.

"(c) LIMITATION ON USE OF AVAILABLE AMOUNTS.- (1) The Secretary, in consultation with the Secretary of the Interior, may use not more than 10 percent of the amount made available for a fiscal year under section 5338(a)(2)(G) to carry out planning, research, and technical assistance under this section, including the development of technology appropriate for use in a qualified project.

"(2) Amounts made available under this subsection are in addition to amounts otherwise available to the Secretary to carry out planning, research, and technical assistance under this title or any other provision of law.

"(3) No qualified project shall receive more than 12 percent of the total amount made available to carry out this section under section 5338(a)(2)(G) for any fiscal year.

"(d) PLANNING PROCESS.-In undertaking a qualified project under this section,

"(1) if the qualified participant is a Federal land management agency-

"(A) the Secretary, in cooperation with the Secretary of the Interior, shall develop transportation planning procedures that are consistent with-

"(i) the metropolitan planning provisions under section 5303 of this title;

"(ii) the statewide planning provisions under section 5304 of this title; and

"(iii) the public participation requirements under section 5307(e); and

"(B) in the case of a qualified project that is at a unit of the National Park system, the planning process shall be consistent with the general management plans of the unit of the National Park system; and

"(2) if the qualified participant is a State or local governmental authority, or more than one State or local governmental authority in more than one State, the qualified participant shall-

"(A) comply with the metropolitan planning provisions under section 5303 of this title;

"(B) comply with the statewide planning provisions under section 5304 of this title;

"(C) comply with the public participation requirements under section 5307(e) of this title; and

"(D) consult with the appropriate Federal land management agency during the planning process.

"(e) COST SHARING.-(1) The Secretary, in cooperation with the Secretary of the Interior, shall establish the share of assistance to be provided under this section to a qualified participant.

"(2) In establishing the share of assistance to be provided under this section, the Secretary shall consider-

"(A) visitation levels and the revenue derived from user fees in the eligible area in which the qualified project is carried out;

"(B) the extent to which the qualified participant coordinates with a public transportation authority or private entity engaged in public transportation;

"(C) private investment in the qualified project, including the provision of contract services, joint development activities, and the use of innovative financing mechanisms;

"(D) the clear and direct benefit to the qualified participant; and

"(E) any other matters that the Secretary considers appropriate to carry out this section.

"(3) Notwithstanding any other provision of law, Federal funds appropriated to any Federal land management agency may be counted toward the remainder of the cost of a qualified project.

"(f) SELECTION OF QUALIFIED PROJECTS-(1) The Secretary of the Interior, after consultation with and in cooperation with the Secretary, shall determine the final selection and funding of an annual program of qualified projects in accordance with this section.

"(2) In determining whether to include a project in the annual program of qualified projects, the Secretary of the Interior shall consider-

"(A) the justification for the qualified project, including the extent to which the qualified project would conserve resources, prevent or mitigate adverse impact, and enhance the environment;

"(B) the location of the qualified project, to ensure that the selected qualified projects-

"(i) are geographically diverse nationwide; and

"(ii) include qualified projects in eligible areas located in both urban areas and rural areas;

"(C) the size of the qualified project, to ensure that there is a balanced distribution;

"(D) the historical and cultural significance of a qualified project;

"(E) safety;

"(F) the extent to which the qualified project would-

"(i) enhance livable communities;

"(ii) reduce pollution (including noise pollution, air pollution, and visual pollution);

"(iii) reduce congestion; and

"(iv) improve the mobility of people in the most efficient manner; and

"(G) any other matters that the Secretary considers appropriate to carry out this section, including-

"(i) visitation levels;

"(ii) the use of innovative financing or joint development strategies; and

"(iii) coordination with gateway communities.

"(g) QUALIFIED PROJECTS CARRIED OUT IN ADVANCE.-(1) When a qualified participant carries out any part of a qualified project without assistance under this section in accordance with all applicable procedures and requirements, the Secretary, in consultation with the Secretary of the Interior, may pay the share of the net capital project cost of a qualified project if-

"(A) the qualified participant applies for the payment;

"(B) the Secretary approves the payment; and

"(C) before carrying out that part of the qualified project, the Secretary approves the plans and specifications in the same manner as plans and specifications are approved for other projects assisted under this section.

"(2)(A) The cost of carrying out part of a qualified project under paragraph (1) includes the amount of interest earned and payable on bonds issued by a State or local governmental authority, to the extent that proceeds of the bond are expended in carrying out that part.

"(B) The rate of interest under this paragraph may not exceed the most favorable rate reasonably available for the qualified project at the time of borrowing.

"(C) The qualified participant shall certify, in a manner satisfactory to the Secretary, that the qualified participant has exercised reasonable diligence in seeking the most favorable interest rate.

"(h) RELATIONSHIP TO OTHER LAWS.-(1) A qualified participant under this section is subject to the requirements of section 5307 of this title to the extent the Secretary considers appropriate.

"(3) The Secretary may waive the applicability of the Special Warranty under paragraph (B) for private non-profit subrecipients on a case-by-case basis as the Secretary deems appropriate

"(4) A qualified participant under this section is subject to any other terms, conditions, requirements, and provisions that the Secretary determines to be appropriate to carry out this section, including requirements for the distribution of proceeds on disposition of real property and equipment resulting from a qualified project assisted under this section.

"(5) If the amount of assistance anticipated to be required for a qualified project under this section is $75,000,000 or more, the qualified participant shall prepare a project management plan in accordance with sections 5327(a) and (b) of this title."

"(i) ASSET MANAGEMENT.-The Secretary, in consultation with the Secretary of the Interior, may transfer the interest of the Department of Transportation in, and control over, all facilities and equipment acquired under this section to a qualified participant for use and disposition in accordance with any property management regulations that the Secretary determines to be appropriate.

"(j) COORDINATION OF RESEARCH AND DEPLOYMENT OF NEW TECHNOLOGIES.--(1) The Secretary, in cooperation with the Secretary of the Interior, may undertake, or make grants, cooperative agreements, contracts (including agreements with departments, agencies, and instrumentalities of the Federal Government) or other transactions for research, development, and deployment of new technologies in eligible areas that will-

"(A) conserve resources;

"(B) prevent or mitigate adverse environmental impact;

"(C) improve visitor mobility, accessibility, and enjoyment; and

"(D) reduce pollution (including noise pollution and visual pollution).

"(2) The Secretary may request and receive appropriate information from any source.

"(3) Grants, cooperative agreements, contracts or other transactions under paragraph (1) shall be awarded from amounts allocated under subsection (c)(1).".

(b) CONFORMING AMENDMENTS.-The table of sections for chapter 53 is amended by inserting after the item relating to section 5315 the following:
"5316. National parks and public lands Legacy Project.".

SEC. 3038. OVER-THE-ROAD BUS ACCESSIBILTY PROGRAM. [Analysis]

(a) Section 3038 of the Transportation Equity Act for the 21^st Century, Pub. L. 105-178, is amended-

(1) by striking the section heading and inserting the following:
"OVER-THE-ROAD BUS ACCESSIBILITY PROGRAM."; and

(2) by revising subsection (g) to read as follows:

"(g) FUNDING-(1) Of the amounts made available by or appropriated under section 5338(a)(2)(E) in each fiscal year, 75 percent shall be available for operators of over-the-road buses used substantially or exclusively in intercity, fixed-route over-the-road bus service to finance the incremental capital and training costs of the Department of Transportation's final rule regarding accessibility of over-the-road buses. Such amounts shall remain available until expended.

"(2) Of the amounts made available by or appropriated under section 5338(a)(2)(E) in each fiscal year, 25 percent shall be available for operators of other over-the-road bus service to finance the incremental capital and training costs of the Department of Transportation's final rule regarding accessibility of over-the-road buses. Such amounts shall remain available until expended.".

(b) CONFORMING AMENDMENTS--The item relating to section 3038 in the table of sections for the Transportation Equity Act for the 21^st Century is amended to read as follows:
"Over-the-road bus accessibility program."

SEC. 3039. FORMULA GRANTS FOR SPECIAL NEEDS OF ELDERLY INDIVIDUALS AND INDIVIDUALS WITH DISABILITIES [Analysis]

IN GENERAL --Section 5310 is amended to read as follows:

"(a) GENERAL AUTHORITY.--(1) The Secretary may make grants to a State under this section for capital public transportation projects planned, designed, and carried out to meet the special needs of elderly individuals and individuals with disabilities. A State may then allocate the funds to--.

"(A) a private non-profit organization; or

"(B) a governmental authority--

"(i) approved by the State to coordinate services for elderly individuals and individuals with disabilities; or

"(ii) that certifies that there are not any nonprofit organizations readily available in the area to provide the services described under this paragraph.

"(2) A capital public transportation project under this section may include acquiring public transportation services as an eligible capital expense.

"(3) A State may use not more than 15 percent of the amounts apportioned under this section to administer, plan and provided technical assistance for a project funded under this section.

"(b) APPORTIONMENTS.--(1) The Secretary shall apportion amounts made available under section 5338(a)(2)(M) of this title under a formula the Secretary administers that considers the number of elderly individuals and individuals with disabilities in each State.

"(c) GOVERNMENT'S SHARE.--A grant for a capital project under this section may not exceed 80 percent of the net capital costs of the project, as determined by the Secretary. The remainder-

"(1) may be provided from an undistributed cash surplus, a replacement or depreciation cash fund or reserve, a service agreement with a State or local social service agency or a private social service organization, or new capital; and

"(2) may be derived from amounts appropriated to or made available to a department or agency of the Federal government (other than the Department of Transportation, except for Federal Land Highway funds) that are eligible to be expended for transportation.

"(3) For purposes of paragraph (2), the prohibitions on the use of funds for matching requirements under section 403(a)(5)(c)(vii) of the Social Security Act shall not apply to federal or state funds to be used for transportation purposes.".

"(d) GRANT REQUIREMENTS.--(1) A recipient of a grant under this section is subject to all requirements of a grant under section 5307 of this title to the extent the Secretary considers appropriate."

(2) A recipient that transfers funds to section 5336 pursuant to subsection (b)(2) shall certify that the project for which the funds are requested has been coordinated with private non-profit providers of services under this section.

"(3) A recipient of funds under this section shall certify that--

"(A) the projects selected were derived from a locally developed, coordinated public transit-human services transportation plan; and

"(B) the plan was developed through a process that included representatives of public, private, and nonprofit transportation and human services providers and participation by the public;

"(4) A recipient of a grant under this section shall certify that allocations of the grant to subrecipients are distributed on a fair and equitable basis.

"(e) STATE PROGRAM OF PROJECTS.--Amounts made available to carry out this subsection may be used for transportation projects to assist in providing transportation services for elderly individuals and individuals with disabilities that are included in a State program of projects. A program shall be submitted annually to the Secretary for approval and shall contain an assurance that the program provides for maximum feasible coordination of transportation services assisted under this section with transportation services assisted by other United States Government sources.

"(f) LEASING VEHICLES.--Vehicles acquired under this section may be leased to local governmental authorities to improve transportation services designed to meet the special needs of elderly individuals and individuals with disabilities.

"(g) HOMEBOUND INDIVIDUALS.--Public transportation service providers receiving assistance under this section or 5311(c) of this title may coordinate and assist in regularly providing meal delivery service for homebound individuals if the delivery service does not conflict with providing public transportation service or reduce service to public transportation passengers.

"(h) TRANSFERS OF FACILITIES AND EQUIPMENT.--With the consent of the recipient currently having a facility or equipment acquired with assistance under this section, a State may transfer the facility or equipment to any recipient eligible to receive assistance under this chapter if the facility or equipment will continue to be used as required under this section

"(i) FARES NOT REQUIRED.--This chapter does not require that elderly individuals and individuals with disabilities be charged a fare.".

SEC. 3040. JOB ACCESS AND REVERSE COMMUTE. [Analysis]

(a) Section 5308 is amended to read as follows:
"§ 5308. Formula grants for job access and reverse commute projects.

"(a) DEFINITIONS.--In this section,

"(1) 'recipient' means a State that receives a grant under this section directly.

"(2) 'subrecipient' means a State or local public authority, a nonprofit organization, or a private operator of public transportation service that may receive a grant under this section indirectly through a recipient, rather than directly from the Federal government.".

"(b) GENERAL AUTHORITY.--(1) The Secretary may make grants to a recipient under this section for access to jobs and reverse commute projects to a recipient.

"(2) A recipient may use not more than 15 percent of the amounts apportioned under this section to administer, plan, and provide technical assistance for a project funded under this section.

"(c) APPORTIONMENTS.--(1) The Secretary shall apportion amounts made available under section 5338(a)(2)(M) of this title under a formula the Secretary administers that considers the number of low income people in each State.

"(2) The recipient may transfer any funds apportioned to it under this subsection to sections 5311(c) or 5336. Any apportionment transferred pursuant to this subsection shall be made available for eligible job access and reverse commute projects under this section.

"(d) GRANT REQUIREMENTS--(1) A grant under this section is subject to the requirements of 5307 to the extent the Secretary considers appropriate.

"(3) The Secretary may waive the applicability of the Special Warranty under paragraph (2) for private non-profit subrecipients on a case-by-case basis as the Secretary deems appropriate.

"(4) A recipient of a grant under this section shall certify that allocations of the grant to subrecipients are distributed on a fair and equitable basis.

"(e) COMPETITIVE PROCESS--(1) The recipient shall conduct a statewide solicitation for applications for grants under this section.

"(2) Subrecipients seeking to receive a grant under this section shall submit to the recipient an application in the form and in accordance with such requirements as the recipient shall establish.

"(3) Subrecipients submitting applications pursuant to paragraph (2) shall be selected on a competitive basis.

"(f) COORDINATION--"(1) The Secretary shall coordinate activities under this section with related activities under programs of other Federal departments and agencies.

"(3) A recipient of funds under this section shall certify that--

"(A) the projects selected were derived from a locally developed, coordinated public transit-human services transportation plan; and

"(B) the plan was developed through a process that included representatives of public, private, and nonprofit transportation and human services providers and participation by the public;

"(2) A recipient carrying out a program of operating assistance under this section may not limit the level or extent of use of the Government grant for the payment of operating expenses.

(b) CONFORMING AMENDMENT.-The table of sections for Chapter 53 is amended after the item relating to section 5307 to read as follows:
"5308. Formula grants for job access and reverse commute projects.

The Safe, Accountable, Flexible and EfficientTransportation Equity Act of 2003

TITLE III-FEDERAL TRANSIT ADMINISTRATION PROGRAMS

The Safe, Accountable, Flexible and Efficient
Transportation Equity Act of 2003