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 TITLE <<NOTE: Federal Transit Act of 1998. Grants. Inter- governmental   
relations. Loans.>>  III--FEDERAL TRANSIT ADMINISTRATION PROGRAMS  
  
SEC. 3001. SHORT TITLE. <<NOTE: 49 USC 5101 note.>>   
  
    This title may be cited as the ``Federal Transit Act of 1998''.  
  
SEC. 3002. AMENDMENTS TO TITLE 49, UNITED STATES CODE.  
  
    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. DEFINITIONS.  
  
    Section 5302 is amended to read as follows:  
  
``Sec. 5302. Definitions  
  
    ``(a) In General.--In this chapter, the following definitions apply:  
            ``(1) Capital project.--The term `capital project' means a   
        project for--  
                    ``(A) acquiring, constructing, supervising, or   
                inspecting equipment or a facility for use in mass   
                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   
                mass 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 mass transportation improvement that   
                enhances economic development or incorporates private   
                investment, including commercial and residential   
                development, pedestrian and bicycle access to a mass   
                transportation facility, and the renovation and   
                improvement of historic transportation facilities,   
                because the improvement enhances the effectiveness of a   
                mass transportation project and is related physically or   
                functionally to that mass transportation project, or   
                establishes new or enhanced coordination between mass   
                transportation and other transportation, and provides a   
                fair share of revenue for mass transportation that will   
                be used for mass 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 and 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 mass transportation;  
                    ``(H) the introduction of new technology, through   
                innovative and improved products, into mass   
                transportation; or  
                    ``(I) the provision of nonfixed route paratransit   
                transportation services in accordance with section 223   
                of the Americans with Disabilities Act of 1990 (42   
                U.S.C. 12143), 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.  
            ``(2) Chief executive officer of a state.--The term `chief   
        executive officer of a State' includes the designee of the chief   
        executive officer.  
            ``(3) Emergency regulation.--The term `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(b); 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.--The term `fixed guideway' means a   
        mass transportation facility--  
                    ``(A) using and occupying a separate right-of-way or   
                rail for the exclusive use of mass 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) Handicapped individual.--The term `handicapped   
        individual' 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,   
        mass transportation service or a mass transportation facility.  
            ``(6) Local governmental authority.--The term `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.--The term `mass 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.  
            ``(8) Net project cost.--The term `net project cost' means   
        the part of a project that reasonably cannot be financed from   
        revenues.  
            ``(9) New bus model.--The term `new bus model' means a bus   
        model (including a model using alternative fuel)--  
                    ``(A) that has not been used in mass transportation   
                in the United States before the date of production of   
                the model; or  
                    ``(B) used in mass transportation in the United   
                States, but being produced with a major change in   
                configuration or components.  
            ``(10) Public transportation.--The term `public   
        transportation' means mass transportation.  
            ``(11) Regulation.--The term `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.  
            ``(12) Secretary.--The term `Secretary' means the Secretary   
        of Transportation.  
            ``(13) State.--The term `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.  
            ``(14) Transit.--The term `transit' means mass   
        transportation.  
            ``(15) Transit enhancement.--The term `transit enhancement'   
        means, with respect to any project or an area to be served by a   
        project, projects that are designed to enhance mass   
        transportation service or use and that are physically or   
        functionally related to transit facilities. Eligible projects   
        are--  
                    ``(A) historic preservation, rehabilitation, and   
                operation of historic mass transportation buildings,   
                structures, and facilities (including historic bus and   
                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 and walkways;  
                    ``(F) bicycle access, including bicycle storage   
                facilities and installing equipment for transporting   
                bicycles on mass transportation vehicles;  
                    ``(G) transit connections to parks within the   
                recipient's transit service area;  
                    ``(H) signage; and  
                    ``(I) enhanced access for persons with disabilities   
                to mass transportation.  
            ``(16) Urban area.--The term `urban area' means an area that   
        includes a municipality or other built-up place that the   
        Secretary, after considering local patterns and trends of urban   
        growth, decides is appropriate for a local mass transportation   
        system to serve individuals in the locality.  
            ``(17) Urbanized area.--The term `urbanized area' means an   
        area--  
                    ``(A) encompassing at least an urbanized area within   
                a State that the Secretary of Commerce designates; and  
                    ``(B) designated as an urbanized area within   
                boundaries fixed by State and local officials and   
                approved by the Secretary.  
  
    ``(b) Authority To Modify `Handicapped Individual'.--The Secretary   
may by regulation modify the definition of the term `handicapped   
individual' in subsection (a)(5) as it applies to section   
5307(d)(1)(D).''.  
  
SEC. 3004. METROPOLITAN PLANNING.  
  
    (a) General Requirements; Scope of Planning Process.--Section 5303   
is amended by striking subsections (a) and (b) and inserting the   
following:  
    ``(a) General Requirements.--  
            ``(1) Development of plans and programs.--To carry out   
        section 5301(a), metropolitan planning organizations designated   
        under subsection (c), in cooperation with the States and mass   
        transportation operators, shall develop transportation plans and   
        programs for urbanized areas of the State.  
            ``(2) Contents.--The plans and programs developed under   
        paragraph (1) for each metropolitan area shall provide for the   
        development and integrated management and operation of   
        transportation systems and facilities (including pedestrian   
        walkways and bicycle transportation facilities) that will   
        function as an intermodal transportation system for the   
        metropolitan area and as an integral part of an intermodal   
        transportation system for the State and the United States.  
            ``(3) Process.--The process for developing the plans and   
        programs shall provide for consideration of all modes of   
        transportation and shall be continuing, cooperative, and   
        comprehensive to the degree appropriate, based on the complexity   
        of the transportation problems to be addressed.  
  
    ``(b) Scope of Planning Process.--  
            ``(1) In general.--The metropolitan transportation planning   
        process for a metropolitan area under this section shall provide   
        for consideration of projects and strategies that will--  
                    ``(A) support the economic vitality of the   
                metropolitan area, especially by enabling global   
                competitiveness, productivity, and efficiency;  
                    ``(B) increase the safety and security of the   
                transportation system for motorized and nonmotorized   
                users;  
                    ``(C) increase the accessibility and mobility   
                options available to people and for freight;  
                    ``(D) protect and enhance the environment, promote   
                energy conservation, and improve quality of life;  
                    ``(E) enhance the integration and connectivity of   
                the transportation system, across and between modes, for   
                people and freight;  
                    ``(F) promote efficient system management and   
                operation; and  
                    ``(G) emphasize the preservation of the existing   
                transportation system.  
            ``(2) Failure to consider factors.--The failure to consider   
        any factor specified in paragraph (1) shall not be reviewable by   
        any court under this title, subchapter II of chapter 5 of title   
        5, or chapter 7 of title 5 in any matter affecting a   
        transportation plan, a transportation improvement plan, a   
        project or strategy, or the certification of a planning   
        process.''.  
  
    (b) Designating Metropolitan Planning Organizations.--Section   
5303(c) is amended--  
            (1) in paragraph (1)(A)--  
                    (A) by striking ``representing'' and inserting   
                ``that together represent''; and  
                    (B) by striking ``as defined by the Secretary of   
                Commerce)'' and inserting ``or cities, as defined by the   
                Bureau of the Census)'';  
            (2) in paragraph (2)--  
                    (A) by striking ``In a metropolitan area'' and all   
                that follows through ``shall include'' and inserting   
                ``Each policy board of a metropolitan planning   
                organization that serves an area designated as a   
                transportation management area when designated or   
                redesignated under this subsection shall consist of'';   
                and  
                    (B) by striking ``officials of authorities'' and   
                inserting ``officials of public agencies'';  
            (3) in paragraph (3) by striking ``in an urbanized area''   
        and all that follows through ``of the urbanized area'' and   
        inserting ``within an existing metropolitan planning area only   
        if the chief executive officer of the State and the existing   
        metropolitan organization determine that the size and complexity   
        of the existing metropolitan planning area''; and  
            (4) in paragraph (5)--  
                    (A) in subparagraph (A)--  
                          (i) by striking ``representing'' and inserting   
                      ``that together represent''; and  
                          (ii) by striking ``as defined by the Secretary   
                      of Commerce)'' and inserting ``or cities, as   
                      defined by the Bureau of the Census)'';  
                    (B) in subparagraph (B) by striking ``as defined by   
                the Secretary of Commerce)'' and inserting ``or cities,   
                as defined by the Bureau of the Census)''; and  
                    (C) by adding at the end the following:  
  
    ``(D) Designations of metropolitan planning organizations, whether   
made under this section or under any other provision of law, shall   
remain in effect until redesignation under this paragraph.''.  
    (c) Metropolitan Area Boundaries.--Section 5303(d) is amended--  
            (1) in the subsection heading by inserting ``Planning''   
        before ``Area'';  
            (2) in the first sentence--  
                    (A) by striking ``To carry out'' and inserting the   
                following:  
            ``(1) In general.--To carry out''; and  
                    (B) by inserting ``planning'' before ``area'';  
            (3) by striking the second sentence and all that follows and   
        inserting the following:  
            ``(2) Included area.--Each metropolitan planning area--  
                    ``(A) shall encompass at least the existing   
                urbanized area and the contiguous area expected to   
                become urbanized within a 20-year forecast period; and  
                    ``(B) may encompass the entire metropolitan   
                statistical area or consolidated metropolitan   
                statistical area, as defined by the Bureau of the   
                Census.  
            ``(3) Existing metropolitan planning areas in   
        nonattainment.--Notwithstanding paragraph (2), in the case of an   
        urbanized area designated as a nonattainment area for ozone or   
        carbon monoxide under the Clean Air Act (42 U.S.C. 7401 et   
        seq.), the boundaries of the metropolitan planning area in   
        existence as of the date of enactment of this paragraph shall be   
        retained, except that the boundaries may be adjusted by   
        agreement of the chief executive officer of the State and any   
        affected metropolitan planning organizations, in the manner   
        described in subsection (c)(5).  
            ``(4) New metropolitan planning areas in nonattainment.--In   
        the case of an urbanized area designated after the date of   
        enactment of this paragraph as a nonattainment area for ozone or   
        carbon monoxide under the Clean Air Act, the boundaries of the   
        metropolitan planning area--  
                    ``(A) shall be established in the manner described   
                in subsection (c)(1);  
                    ``(B) shall encompass the areas described in   
                paragraph (2)(A);  
                    ``(C) may encompass the areas described in paragraph   
                (2)(B); and  
                    ``(D) may address any nonattainment area identified   
                under the Clean Air Act for ozone or carbon monoxide.'';   
                and  
            (4) by aligning paragraph (1) (as designated by paragraph   
        (2)(A) of this subsection) with paragraphs (2) through (4) (as   
        inserted by paragraph (3) of this subsection).  
  
    (d) Coordination.--Section 5303(e) is amended--  
            (1) in paragraph (2)--  
                    (A) by inserting ``or compact'' after ``agreement''   
                the first place it appears''; and  
                    (B) by striking ``making the agreement effective''   
                and inserting ``making the agreements and compacts   
                effective''; and  
            (2) by adding at the end the following:  
  
    ``(4) The Secretary shall encourage each metropolitan planning   
organization to coordinate, to the maximum extent practicable, the   
design and delivery of transportation services within the metropolitan   
planning area that are provided--  
            ``(A) by recipients of assistance under this chapter; and  
            ``(B) by governmental agencies and non-profit organizations   
        (including representatives of the agencies and organizations)   
        that receive Governmental assistance from a source other than   
        the Department of Transportation to provide non-emergency   
        transportation services.''.  
  
    (e) Developing Long-Range Transportation Plans.--Section 5303(f) is   
amended--  
            (1) in paragraph (1)--  
                    (A) in subparagraph (A) by striking ``United States   
                and regional transportation functions'' and inserting   
                ``national, regional, and metropolitan transportation   
                functions'';  
                    (B) in subparagraph (B) by striking clause (iii) and   
                inserting the following:  
                    ``(iii) recommends any additional financing   
                strategies for needed projects and programs;''; and  
                    (C) by striking subparagraph (C) and inserting the   
                following:  
            ``(C) identify transportation strategies necessary--  
                    ``(i) to ensure preservation, including requirements   
                for management, operation, modernization, and   
                rehabilitation, of the existing and future   
                transportation system; and  
                    ``(ii) to use existing transportation facilities   
                most efficiently to relieve congestion, to efficiently   
                serve the mobility needs of people and goods, and to   
                enhance access within the metropolitan planning area;   
                and'';  
            (2) in paragraph (2) by striking ``as they are related to a   
        20-year forecast period'' and inserting ``and any State or local   
        goals developed within the cooperative metropolitan planning   
        process as they relate to a 20-year forecast period and to other   
        forecast periods as determined by the participants in the   
        planning process'';  
            (3) in paragraph (4)--  
                    (A) by inserting after ``employees,'' the following:   
                ``freight shippers, providers of freight transportation   
                services,''; and  
                    (B) by inserting after ``private providers of   
                transportation,'' the following: ``representatives of   
                users of public transit,'';  
            (4) in paragraph (5)(A) by inserting ``published or   
        otherwise'' before ``made readily available'';  
            (5) in the subsection heading by striking ``Long-Range   
        Plans'' and inserting ``Long-Range Transportation Plans''; and  
            (6) by striking ``long-range plans'' each place it appears   
        and inserting ``long-range transportation plans''.  
  
SEC. 3005. TRANSPORTATION IMPROVEMENT PROGRAM.  
  
    (a) Development and Update.--The second sentence of section 5304(a)   
is amended--  
            (1) by striking ``the organization'' and inserting ``the   
        metropolitan planning organization, in cooperation with the   
        chief executive officer of the State and any affected mass   
        transportation operator,'';  
            (2) by inserting after ``employees,'' the following: ``other   
        affected employee representatives, freight shippers, providers   
        of freight transportation services,''; and  
            (3) by inserting after ``private providers of   
        transportation,'' the following: ``representatives of users of   
        public transit,''.  
  
    (b) Contents.--Section 5304(b)(2) is amended by striking   
subparagraph (C) and inserting the following:  
                    ``(C) identifies innovative financing techniques to   
                finance projects, programs, and strategies, which may   
                include, for illustrative purposes, additional projects   
                that would be included in the approved transportation   
                improvement program if reasonable additional resources   
                beyond those identified in the financial plan were   
                available.''.  
  
    (c) Project Selection.--Section 5304(c) is amended--  
            (1) by striking paragraph (1) and inserting the following:   
        ``(1) Except as otherwise provided in section 5305(d)(1) and in   
        addition to the transportation improvement program development   
        required under subsection (b), the selection of federally funded   
        projects for implementation in metropolitan areas shall be   
        carried out, from the approved transportation improvement   
        program--  
            ``(A) by--  
                    ``(i) in the case of projects under title 23, the   
                State; and  
                    ``(ii) in the case of projects under this chapter,   
                the designated transit funding recipients; and  
            ``(B) in cooperation with the metropolitan planning   
        organization.''; and  
            (2) by adding at the end the following:  
  
    ``(3) Notwithstanding any other provision of law, action by the   
Secretary shall not be required to advance a project included in the   
approved transportation improvement program in place of another project   
in the program.  
    ``(4) Selection of projects from illustrative list.--Notwithstanding   
subsection (b)(2)(C), a State or metropolitan planning organization   
shall not be required to select any project from the  
illustrative list of additional projects included in the financial plan   
under subsection (b)(2)(C).  
    ``(5) Publication.--(A) A transportation improvement program   
involving Government participation shall be published or otherwise made   
readily available by the metropolitan planning organization for public   
review.  
    ``(B) An annual listing of projects for which Government funds have   
been obligated in the preceding year shall be published or otherwise   
made available by the metropolitan planning organization for public   
review. The listing shall be consistent with the categories identified   
in the transportation improvement program.  
    ``(6) Regionally significant projects proposed for funding under   
chapter 2 of title 23 shall be identified individually in the   
transportation improvement program. All other projects funded under   
chapter 2 of title 23 shall be grouped in 1 line item or identified   
individually in the transportation improvement program.''.  
  
SEC. 3006. TRANSPORTATION MANAGEMENT AREAS.  
  
    (a) Designation.--Section 5305(a) is amended by striking paragraph   
(2) and inserting the following:  
            ``(2) any other area, if requested by the chief executive   
        officer and the metropolitan planning organization designated   
        for the area.''.  
  
    (b) Transportation Plans and Programs.--Section 5305(b) is amended   
by inserting ``affected'' before ``mass transportation operators''.  
    (c) Congestion Management System.--Section 5305(c) is amended by   
striking ``The Secretary'' and all that follows through the final   
period.  
    (d) Project Selection.--Section 5305(d)(1)(A) is amended by   
inserting ``and any affected mass transportation operator'' after ``the   
State''.  
    (e) Certification.--Section 5305(e) is amended--  
            (1) by striking paragraph (2) and inserting the following:  
  
    ``(2)(A) If a metropolitan planning process is not certified, the   
Secretary may withhold not more than 20 percent of the apportioned funds   
attributable to the transportation management area under this chapter   
and title 23.  
    ``(B) Any apportionments withheld under subparagraph (A) shall be   
restored to the metropolitan area at such time as the metropolitan   
planning organization is certified by the Secretary.''; and  
            (2) by adding at the end the following:  
  
    ``(4) In making certification determinations under this subsection,   
the Secretary shall provide for public involvement appropriate to the   
metropolitan area under review.''.  
    (f) Continuation of Current Review Practice.--Section 5305 is   
amended by adding at the end the following:  
    ``(h) Continuation of Current Review Practice.--Since plans and   
programs described in this section are subject to a reasonable   
opportunity for public comment, since individual projects included in   
the plans and programs are subject to review under the National   
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), and since   
decisions by the Secretary concerning plans and programs described in   
this section have not been reviewed under such Act as of January 1,   
1997, any decision by the Secretary concerning a plan or program   
described in this section shall not  
be considered to be a Federal action subject to review under the   
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).''.  
  
SEC. 3007. URBANIZED AREA FORMULA GRANTS.  
  
    (a) Section Heading.--  
            (1) Amendment to section 5307.--Section 5307 is amended by   
        striking the section heading and inserting the following:  
  
``Sec. 5307. Urbanized area formula grants''.  
  
            (2) Conforming amendment.--The item relating to section 5307   
        in the table of sections for chapter 53 is amended to read as   
        follows:  
  
``5307. Urbanized area formula grants.''.  
  
    (b) Definitions.--Section 5307(a) is amended--  
            (1) by striking ``In this section--'' and inserting ``In   
        this section, the following definitions apply:'';  
            (2) by inserting ``Associated capital maintenance items.--  
        The term'' after ``(1)''; and  
            (3) by inserting ``Designated recipient.--The term'' after   
        ``(2)''.  
  
    (c) General Authority.--Section 5307(b) is amended--  
            (1) in paragraph (1)--  
                    (A) by striking ``, improvement, and operating   
                costs'' and inserting ``and improvement costs''; and  
                    (B) by adding at the end the following: ``The   
                Secretary may also make grants under this section to   
                finance the operating cost of equipment and facilities   
                for use in mass transportation in an urbanized area with   
                a population of less than 200,000.'';  
            (2) in paragraph (2)(A)--  
                    (A) by inserting ``, in writing,'' after   
                ``approved''; and  
                    (B) by striking ``and'' at the end;  
            (3) in paragraph (2)(B) by striking the period at the end   
        and inserting ``; and'';  
            (4) in paragraph (2) by adding at the end the following:  
                    ``(C) the metropolitan planning organization in   
                approving the use under subparagraph (A) determines that   
                the local transit needs are being addressed.'';  
            (5) by striking paragraphs (3) and (5); and  
            (6) by redesignating paragraph (4) as paragraph (3).  
  
    (d) Advance Construction.--Section 5307(g)(3) is amended by striking   
``the amount by which'' and all that follows through the period at the   
end and inserting ``the most favorable financing terms reasonably   
available for the project at the time of borrowing. The   
applicant <<NOTE: Certification.>>  shall certify, in a manner   
satisfactory to the Secretary, that the applicant has shown reasonable   
diligence in seeking the most favorable financing terms.''.  
  
    (e) Coordination of Reviews.--Section 5307(i)(2) is amended by   
adding at the end the following: ``To the extent practicable, the   
Secretary shall coordinate such reviews with any related State or local   
reviews.''.  
    (f) Transit Enhancement Activities.--Section 5307(k) is amended to   
read as follows:  
    ``(k) Transit Enhancement Activities.--  
            ``(1) In general.--One percent of the funds apportioned to   
        urbanized areas with a population of at least 200,000 under  
        section 5336 for a fiscal year shall be made available for   
        transit enhancement activities in accordance with section   
        5302(a)(15).  
            ``(2) Period of availability.--Funds apportioned under   
        paragraph (1) shall be available for obligation for 3 years   
        following the fiscal year in which the funds are apportioned.   
        Funds that are not obligated at the end of such period shall be   
        reapportioned under the urbanized area formula program of   
        section 5336.  
            ``(3) Report.--A recipient of funds apportioned under   
        paragraph (1) shall submit, as part of the recipient's annual   
        certification to the Secretary, a report listing the projects   
        carried out during the fiscal year with those funds.''.  
  
    (g) Conforming Amendments.--Section 5307(n)(2) is amended by   
inserting ``5319,'' after ``5318,''.  
  
SEC. 3008. CLEAN FUELS FORMULA GRANT PROGRAM.  
  
    (a) In General.--Section 5308 is amended to read as follows:  
  
``Sec. 5308. Clean fuels formula grant program  
  
    ``(a) Definitions.--In this section--  
            ``(1) the term `clean fuel vehicle' means a vehicle that--  
                    ``(A) is powered by--  
                          ``(i) compressed natural gas;  
                          ``(ii) liquefied natural gas;  
                          ``(iii) biodiesel fuels;  
                          ``(iv) batteries;  
                          ``(v) alcohol-based fuels;  
                          ``(vi) hybrid electric;  
                          ``(vii) fuel cell;  
                          ``(viii) clean diesel, to the extent allowed   
                      under this section; or  
                          ``(ix) other low or zero emissions technology;   
                      and  
                    ``(B) the Administrator of the Environmental   
                Protection Agency has certified sufficiently reduces   
                harmful emissions;  
            ``(2) the term `designated recipient' has the same meaning   
        as in section 5307(a)(2); and  
            ``(3) the term `eligible project'--  
                    ``(A) means a project for--  
                          ``(i) purchasing or leasing clean fuel buses,   
                      including buses that employ a lightweight   
                      composite primary structure;  
                          ``(ii) constructing or leasing clean fuel   
                      buses or electrical recharging facilities and   
                      related equipment;  
                          ``(iii) improving existing mass transportation   
                      facilities to accommodate clean fuel buses;  
                          ``(iv) repowering pre-1993 engines with clean   
                      fuel technology that meets the current urban bus   
                      emission standards; or  
                          ``(v) retrofitting or rebuilding pre-1993   
                      engines if before half life to rebuild; and  
                    ``(B) in the discretion of the Secretary, may   
                include projects relating to clean fuel, biodiesel,   
                hybrid electric, or zero emissions technology vehicles   
                that exhibit equivalent or superior emissions reductions   
                to existing clean fuel or hybrid electric technologies.  
    ``(b) Authority.--The Secretary shall make grants in accordance with   
this section to designated recipients to finance eligible projects.  
    ``(c) Application.--  
            ``(1) In general.--Not later than January 1 of each year,   
        any designated recipient seeking to apply for a grant under this   
        section for an eligible project shall submit an application to   
        the Secretary, in such form and in accordance with such   
        requirements as the Secretary shall establish by regulation.  
            ``(2) Certification required.--An application submitted   
        under paragraph (1) shall contain a certification by the   
        applicant that the grantee will operate vehicles purchased with   
        a grant under this section only with clean fuels.  
  
    ``(d) Apportionment of Funds.--  
            ``(1) Formula.--Not later than February 1 of each year, the   
        Secretary shall apportion amounts made available to carry out   
        this section to designated recipients submitting applications   
        under subsection (c), of which--  
                    ``(A) two-thirds shall be apportioned to designated   
                recipients with eligible projects in urban areas with a   
                population of at least 1,000,000, of which--  
                          ``(i) 50 percent shall be apportioned, such   
                      that each such designated recipient receives a   
                      grant in an amount equal to the ratio between--  
                                    ``(I) the number of vehicles in the   
                                bus fleet of the eligible project of the   
                                designated recipient, weighted by   
                                severity of nonattainment for the area   
                                in which the eligible project is   
                                located, as provided in paragraph (2);   
                                and  
                                    ``(II) the total number of vehicles   
                                in the bus fleets of all eligible   
                                projects in areas with a population of   
                                at least 1,000,000 funded under this   
                                section, weighted by severity of   
                                nonattainment for all areas in which   
                                those eligible projects are located, as   
                                provided in paragraph (2); and  
                          ``(ii) 50 percent shall be apportioned, such   
                      that each such designated recipient receives a   
                      grant in an amount equal to the ratio between--  
                                    ``(I) the number of bus passenger   
                                miles (as that term is defined in   
                                section 5336(c)) of the eligible project   
                                of the designated recipient, weighted by   
                                severity of nonattainment of the area in   
                                which the eligible project is located,   
                                as provided in paragraph (2); and  
                                    ``(II) the total number of bus   
                                passenger miles of all eligible projects   
                                in areas with a population of at least   
                                1,000,000 funded under this section,   
                                weighted by severity of nonattainment of   
                                all areas in which those eligible   
                                projects are located, as provided in   
                                paragraph (2); and  
                    ``(B) one-third shall be apportioned to designated   
                recipients with eligible projects in urban areas with a   
                population of less than 1,000,000, of which--  
                          ``(i) 50 percent shall be apportioned, such   
                      that each such designated recipient receives a   
                      grant in an amount equal to the ratio between--  
                                    ``(I) the number of vehicles in the   
                                bus fleet of the eligible project of the   
                                designated recipient, weighted by   
                                severity of nonattainment for the area   
                                in which the eligible project is   
                                located, as provided in paragraph (2);   
                                and  
                                    ``(II) the total number of vehicles   
                                in the bus fleets of all eligible   
                                projects in areas with a population of   
                                less than 1,000,000 funded under this   
                                section, weighted by severity of   
                                nonattainment for all areas in which   
                                those eligible projects are located, as   
                                provided in paragraph (2); and  
                          ``(ii) 50 percent shall be apportioned, such   
                      that each such designated recipient receives a   
                      grant in an amount equal to the ratio between--  
                                    ``(I) the number of bus passenger   
                                miles (as that term is defined in   
                                section 5336(c)) of the eligible project   
                                of the designated recipient, weighted by   
                                severity of nonattainment of the area in   
                                which the eligible project is located,   
                                as provided in paragraph (2); and  
                                    ``(II) the total number of bus   
                                passenger miles of all eligible projects   
                                in areas with a population of less than   
                                1,000,000 funded under this section,   
                                weighted by severity of nonattainment of   
                                all areas in which those eligible   
                                projects are located, as provided in   
                                paragraph (2).  
            ``(2) Weighting of severity of nonattainment.--  
                    ``(A) In general.--For purposes of paragraph (1),   
                subject to subparagraph (B) of this paragraph, the   
                number of clean fuel vehicles in the fleet, or the   
                number of passenger miles, shall be multiplied by a   
                factor of--  
                          ``(i) 1.0 if, at the time of the   
                      apportionment, the area is a maintenance area (as   
                      that term is defined in section 101 of title 23)   
                      for ozone or carbon monoxide;  
                          ``(ii) 1.1 if, at the time of the   
                      apportionment, the area is classified as--  
                                    ``(I) a marginal ozone nonattainment   
                                area under subpart 2 of part D of title   
                                I of the Clean Air Act (42 U.S.C. 7511   
                                et seq.); or  
                                    ``(II) a marginal carbon monoxide   
                                nonattainment area under subpart 3 of   
                                part D of title I of the Clean Air Act   
                                (42 U.S.C. 7512 et seq.);  
                          ``(iii) 1.2 if, at the time of the   
                      apportionment, the area is classified as--  
                                    ``(I) a moderate ozone nonattainment   
                                area under subpart 2 of part D of title   
                                I of the Clean Air Act (42 U.S.C. 7511   
                                et seq.); or  
                                    ``(II) a moderate carbon monoxide   
                                nonattainment area under subpart 3 of   
                                part D of title I of the Clean Air Act   
                                (42 U.S.C. 7512 et seq.);  
                          ``(iv) 1.3 if, at the time of the   
                      apportionment, the area is classified as--  
                                    ``(I) a serious ozone nonattainment   
                                area under subpart 2 of part D of title   
                                I of the Clean Air Act (42 U.S.C. 7511   
                                et seq.); or  
                                    ``(II) a serious carbon monoxide   
                                nonattainment area under subpart 3 of   
                                part D of title I of the Clean Air Act   
                                (42 U.S.C. 7512 et seq.);  
                          ``(v) 1.4 if, at the time of the   
                      apportionment, the area is classified as--  
                                    ``(I) a severe ozone nonattainment   
                                area under subpart 2 of part D of title   
                                I of the Clean Air Act (42 U.S.C. 7511   
                                et seq.); or  
                                    ``(II) a severe carbon monoxide   
                                nonattainment area under subpart 3 of   
                                part D of title I of the Clean Air Act   
                                (42 U.S.C. 7512 et seq.); or  
                          ``(vi) 1.5 if, at the time of the   
                      apportionment, the area is classified as--  
                                    ``(I) an extreme ozone nonattainment   
                                area under subpart 2 of part D of title   
                                I of the Clean Air Act (42 U.S.C. 7511   
                                et seq.); or  
                                    ``(II) an extreme carbon monoxide   
                                nonattainment area under subpart 3 of   
                                part D of title I of the Clean Air Act   
                                (42 U.S.C. 7512 et seq.).  
                    ``(B) Additional adjustment for carbon monoxide   
                areas.--If, in addition to being classified as a   
                nonattainment or maintenance area (as that term is   
                defined in section 101 of title 23) for ozone under   
                subpart 2 of part D of title I of the Clean Air Act (42   
                U.S.C. 7511 et seq.), the area was also classified under   
                subpart 3 of part D of title I of that Act (42 U.S.C.   
                7512 et seq.) as a nonattainment area for carbon   
                monoxide, the weighted nonattainment or maintenance area   
                fleet and passenger miles for the eligible project, as   
                calculated under subparagraph (A), shall be further   
                multiplied by a factor of 1.2.  
            ``(3) Maximum grant amount.--  
                    ``(A) In general.--The amount of a grant made to a   
                designated recipient under this section shall not exceed   
                the lesser of--  
                          ``(i) for an eligible project in an area--  
                                    ``(I) with a population of less than   
                                1,000,000, $15,000,000; and  
                                    ``(II) with a population of at least   
                                1,000,000, $25,000,000; or  
                          ``(ii) 80 percent of the total cost of the   
                      eligible project.  
                    ``(B) Reapportionment.--Any amounts that would   
                otherwise be apportioned to a designated recipient under   
                this subsection that exceed the amount described in   
                subparagraph (A) shall be reapportioned among other   
                designated recipients in accordance with paragraph (1).  
  
    ``(e) Additional Requirements.--  
            ``(1) Limitation on uses.--Not less than 5 percent of the   
        amount made available by or appropriated under section 5338 in   
        each fiscal year to carry out this section shall be available   
        for any eligible projects for which an application is received   
        from a designated recipient, for--  
                    ``(A) the purchase or construction of hybrid   
                electric or battery-powered buses; or  
                    ``(B) facilities specifically designed to service   
                those buses.  
            ``(2) Clean diesel buses.--Not more than $50,000,000 of the   
        amount made available by or appropriated under section 5338 in   
        each fiscal year to carry out this section may be made available   
        to fund clean diesel buses.  
            ``(3) Bus retrofitting and replacement.--Not more than 5   
        percent of the amount made available by or appropriated under   
        section 5338 in each fiscal year to carry out this section may   
        be made available to fund retrofitting or replacement of the   
        engines of buses that do not meet the clean air standards of the   
        Environmental Protection Agency, as in effect on the date on   
        which the application for such retrofitting or replacement is   
        submitted under subsection (c)(1).  
  
    ``(f) Availability of Funds.--Any amount made available or   
appropriated under this section--  
            ``(1) shall remain available to a project for 1 year after   
        the fiscal year for which the amount is made available or   
        appropriated; and  
            ``(2) that remains unobligated at the end of the period   
        described in paragraph (1), shall be added to the amount made   
        available in the following fiscal year.''.  
  
    (b) Clerical Amendment.--The analysis for chapter 53 is amended by   
striking the item relating to section 5308 and inserting the following:  
  
``5308. Clean fuels formula grant program.''.  
  
SEC. 3009. CAPITAL INVESTMENT GRANTS AND LOANS.  
  
    (a) Section Heading.--Section 5309 is amended in the section heading   
by striking ``Discretionary'' and inserting ``Capital investment''.  
    (b) Conforming Amendment.--The item relating to section 5309 in the   
table of sections for chapter 53 is amended by striking   
``Discretionary'' and inserting ``Capital investment''.  
    (c) General Authority.--Section 5309(a)(1) is amended--  
            (1) by redesignating subparagraphs (F) and (G) as   
        subparagraphs (G) and (H), respectively; and  
            (2) by striking subparagraph (E) and inserting the   
        following:  
            ``(E) capital projects to modernize existing fixed guideway   
        systems;  
            ``(F) capital projects to replace, rehabilitate, and   
        purchase buses and related equipment and to construct bus-  
        related facilities;''.  
  
    (d) Consideration of Decreased Commuter Rail Transportation.--  
Section 5309(c) is amended to read as follows:  
    ``(c) [Reserved.]''.  
    (e) Criteria for Grants and Loans for Fixed Guideway Systems.--  
Section 5309(e) is amended to read as follows:  
    ``(e) Criteria for Grants and Loans for Fixed Guideway Systems.--  
            ``(1) In general.--The Secretary may approve a grant or loan   
        under this section for a capital project for a new fixed   
        guideway system or extension of an existing fixed guideway   
        system only if the Secretary determines that the proposed   
        project is--  
                    ``(A) based on the results of an alternatives   
                analysis and preliminary engineering;  
                    ``(B) justified based on a comprehensive review of   
                its mobility improvements, environmental benefits, cost   
                effectiveness, and operating efficiencies; and  
                    ``(C) supported by an acceptable degree of local   
                financial commitment, including evidence of stable and   
                dependable financing sources to construct, maintain, and   
                operate the system or extension.  
            ``(2) Alternatives analysis and preliminary engineering.--In   
        evaluating a project under paragraph (1)(A), the Secretary shall   
        analyze and consider the results of the alternatives analysis   
        and preliminary engineering for the project.  
            ``(3) Project justification.--In evaluating a project under   
        paragraph (1)(B), the Secretary shall--  
                    ``(A) consider the direct and indirect costs of   
                relevant alternatives;  
                    ``(B) 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;  
                    ``(C) identify and consider mass transportation   
                supportive existing land use policies and future   
                patterns, and the cost of urban sprawl;  
                    ``(D) consider the degree to which the project   
                increases the mobility of the mass transportation   
                dependent population or promotes economic development;  
                    ``(E) consider population density and current   
                transit ridership in the corridor;  
                    ``(F) consider the technical capability of the grant   
                recipient to construct the project;  
                    ``(G) adjust the project justification to reflect   
                differences in local land, construction, and operating   
                costs; and  
                    ``(H) consider other factors that the Secretary   
                determines appropriate to carry out this chapter.  
            ``(4) Local financial commitment.--  
                    ``(A) Evaluation of project.--In evaluating a   
                project under paragraph (1)(C), 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 mass transportation   
                      system (including essential feeder bus and other   
                      services necessary to achieve the projected   
                      ridership levels) without requiring a reduction in   
                      existing mass transportation services to operate   
                      the proposed project.  
                    ``(B) Considerations.--In assessing the stability,   
                reliability, and availability of proposed sources of   
                local financing under subparagraph (A), the Secretary   
                shall consider--  
                          ``(i) existing grant commitments;  
                          ``(ii) the degree to which financing sources   
                      are dedicated to the purposes proposed;  
                          ``(iii) any debt obligation that exists or is   
                      proposed by the recipient for the proposed project   
                      or other mass 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.  
            ``(5) Regulations.--Not later than 120 days after the date   
        of enactment of the Federal Transit Act of 1998, the Secretary   
        shall issue regulations on the manner in which the Secretary   
        will evaluate and rate the projects based on the results of   
        alternatives analysis, project justification, and the degree of   
        local financial commitment, as required under this subsection.  
            ``(6) Project evaluation and rating.--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 such findings, the Secretary shall   
        evaluate and rate the project as `highly recommended',   
        `recommended', or not `recommended', 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 criteria established under the regulations issued under   
        paragraph (5).  
            ``(7) Full funding grant agreement.--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.  
            ``(8) Limitations on applicability.--  
                    ``(A) Projects with a section 5309 federal share of   
                less than $25,000,000.--A project for a new fixed   
                guideway system or extension of an existing fixed   
                guideway system is not subject to the requirements of   
                this subsection, and the simultaneous evaluation of   
                similar projects in at least 2 corridors in a   
                metropolitan area may not be limited, if the assistance   
                provided under this section with respect to the project   
                is less than $25,000,000.  
                    ``(B) Projects in nonattainment areas.--The   
                simultaneous evaluation of projects in at least 2   
                corridors in a metropolitan area may not be limited and   
                the Secretary shall make decisions under this subsection   
                with expedited procedures that will promote carrying out   
                an approved State Implementation Plan in a timely way if   
                a project is--  
                          ``(i) located in a nonattainment area;  
                          ``(ii) a transportation control measure (as   
                      defined by the Clean Air Act (42 U.S.C. 7401 et   
                      seq.)); and  
                          ``(iii) required to carry out the State   
                      Implementation Plan.  
                    ``(C) Projects financed with highway funds.--This   
                subsection does not apply to a part of a project   
                financed  
                completely with amounts made available from the Highway   
                Trust Fund (other than the Mass Transit Account).  
                    ``(D) Previously issued letter of intent or full   
                funding grant agreement.--This subsection does 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 Transit Act   
                of 1998.''.  
  
    (f) Letters of Intent and Full Funding Grant Agreements.--Section   
5309(g) is amended--  
            (1) in the subsection heading by striking ``financing'' and   
        inserting ``funding'';  
            (2) by striking ``full financing'' each place it appears and   
        inserting ``full funding'';  
            (3) in paragraph (1)(B)--  
                    (A) by striking ``30 days'' and inserting ``60   
                days'';  
                    (B) by inserting before the first comma ``or   
                entering into a full funding grant agreement''; and  
                    (C) by striking ``issuance of the letter.'' and   
                inserting ``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.''; and  
            (4) in paragraph (4), by striking ``50 percent'' and all   
        that follows through ``obligated)'' and inserting ``an amount   
        equivalent to the total authorizations under section 5338(b) for   
        new fixed guideway systems and extensions to existing fixed   
        guideway systems for fiscal years 2002 and 2003''.  
  
    (g) Allocating Amounts.--Section 5309(m) is amended to read as   
follows:  
    ``(m) Allocating Amounts.--  
            ``(1) In general.--Of the amounts made available by or   
        appropriated under section 5338 for grants and loans under this   
        section for each of fiscal years 1998 through 2003--  
                    ``(A) 40 percent shall be available for fixed   
                guideway modernization;  
                    ``(B) 40 percent shall be available for capital   
                projects for new fixed guideway systems and extensions   
                to existing fixed guideway systems; and  
                    ``(C) 20 percent shall be available to replace,   
                rehabilitate, and purchase buses and related equipment   
                and to construct bus-related facilities.  
            ``(2) Limitation on amounts available for activities other   
        than final design and construction.--Not more than 8 percent of   
        the amounts made available in each fiscal year by paragraph   
        (1)(B) shall be available for activities other than final design   
        and construction.  
            ``(3) Bus and bus facility grants.--  
                    ``(A) Consideration.--In making grants under   
                paragraph (1)(C), the Secretary shall consider the age   
                of buses, bus fleets, related equipment, and bus-related   
                facilities.  
                    ``(B) Funding for bus testing facility.--Of the   
                amounts made available under paragraph (1)(C),   
                $3,000,000 shall be available in each of fiscal years   
                1998 through 2003 to carry out section 5318.  
            ``(4) Funding for clean fuels.--Of the amounts made   
        available under paragraph (1)(C), $50,000,000 shall be available  
        in each of fiscal years 1999 through 2003 to carry out section   
        5308.  
            ``(5) Funding for ferry boat systems.--  
                    ``(A) Of the amounts made available under paragraph   
                (1)(B), $10,400,000 shall be available in each of fiscal   
                years 1999 through 2003 for capital projects in Alaska   
                or Hawaii, for new fixed guideway systems and extensions   
                to fixed guideway systems that are ferry boats or ferry   
                terminal facilities, or that are approaches to ferry   
                terminal facilities.  
                    ``(B) Of the amounts appropriated under section   
                5338(h)(5), $3,600,000 shall be available in each of   
                fiscal years 1999 through 2003 for capital projects in   
                Alaska or Hawaii, for new fixed guideway systems and   
                extensions to fixed guideway systems that are ferry   
                boats or ferry terminal facilities, or that are   
                approaches to ferry terminal facilities.''.  
  
    (h) Conforming Amendments.--  
            (1) Repeal.--Section 5309(f) is amended to read as follows:  
  
    ``(f) [Reserved.]''.  
            (2) Cross reference.--Section 5328(a)(2) is amended by   
        striking ``5309(e)(1)-(6) of this title'' and inserting   
        ``5309(e)''.  
            (3) References to full funding grant agreements.--Chapter 53   
        is amended--  
                    (A) in section 5320--  
                          (i) by striking ``full financing'' each place   
                      it appears and inserting ``full funding''; and  
                          (ii) in subsection (e) in the subsection   
                      heading, by striking ``Financing'' and inserting   
                      ``Funding''; and  
                    (B) in section 5328(a)(4) by striking ``full   
                financing'' each place it appears and inserting ``full   
                funding''.  
  
    (i) Reports.--Section 5309 is amended by adding at the end the   
following:  
    ``(o) Reports.--  
            ``(1) Funding levels and allocations of funds for fixed   
        guideway systems.--  
                    ``(A) Annual report.--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 a report that includes a proposal on the   
                allocation of amounts to be made available to finance   
                grants and loans for capital projects for new fixed   
                guideway systems and extensions to existing fixed   
                guideway systems among applicants for those amounts.  
                    ``(B) Recommendations on funding.--The annual report   
                under this paragraph shall include evaluations and   
                ratings, as required under subsection (e), for each   
                project that is authorized or has received funds under   
                this section since the date of enactment of the Federal   
                Transit Act of 1998 or October 1 of the preceding fiscal   
                year, whichever date is earlier. The report shall also   
                include recommendations 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 for the next 10 fiscal years based on   
                information currently available to the Secretary.  
            ``(2) Supplemental report on new starts.--The Secretary   
        shall submit a report to Congress on the 31st day of August of   
        each year that describes the Secretary's evaluation and rating   
        of each project that has completed alternatives analysis or   
        preliminary engineering since the date of the last report. The   
        report shall include all relevant information that supports the   
        evaluation and rating of each project, including a summary of   
        each project's financial plan.  
            ``(3) Annual gao review.--The General Accounting Office   
        shall--  
                    ``(A) conduct an annual review of--  
                          ``(i) the processes and procedures for   
                      evaluating and rating projects and recommending   
                      projects; and  
                          ``(ii) the Secretary's implementation of such   
                      processes and procedures; and  
                    ``(B) shall report to Congress on the results of   
                such review by April 30 of each year.''.  
  
    (j) Project Defined.--Section 5309 is amended by adding at the end   
the following:  
    ``(p) Project Defined.--In this section, the term `project' means,   
with respect to a new fixed guideway system or extension to an existing   
fixed guideway system, a minimum operable segment of the project.''.  
  
SEC. 3010. DOLLAR VALUE OF MOBILITY IMPROVEMENTS. <<NOTE: 49 USC 5309   
            note.>>   
  
    (a) In General.--The Secretary shall not consider the dollar value   
of mobility improvements, as specified in the report required under   
section 5309(o) (as added by this Act), in evaluating projects under   
section 5309 of title 49, United States Code, in developing regulations,   
or in carrying out any other duty of the Secretary.  
    (b) Study.--  
            (1) In general.--The Comptroller General shall conduct a   
        study of the dollar value of mobility improvements and the   
        relationship of mobility improvements to the overall   
        transportation justification of a new fixed guideway system or   
        extension to an existing system.  
            (2) Report.--Not later than January 1, 2000, the Secretary   
        shall transmit to the Committee on Transportation and   
        Infrastructure of the House of Representatives and the Committee   
        on Banking, Housing, and Urban Affairs of the Senate a report on   
        the results of the study under paragraph (1), including an   
        analysis of the factors relevant to determining the dollar value   
        of mobility improvements.  
  
SEC. 3011. LOCAL SHARE. <<NOTE: 49 USC 5307 note.>>   
  
    (a) In General.--Notwithstanding any other provision of law, for   
fiscal years 1999 through 2003, a recipient of assistance under section   
5307 or 5309 of title 49, United States Code, may use, as part of the   
local matching funds for a capital project (as defined in section   
5302(a) of title 49, United States Code), the proceeds from the issuance   
of revenue bonds.  
    (b) Maintenance of Effort.--The Secretary shall approve of the use   
of the proceeds from the issuance of revenue bonds for the remainder of   
the net project cost (as defined in section 5302(a) of title 49, United   
States Code) only if the aggregate amount of financial support for mass   
transportation in the urbanized area from the State and affected local   
governmental authorities during the next 3 fiscal years, as programmed   
in the State Transportation  
Improvement Program under section 135 of title 23, United States Code,   
is not less than the aggregate amount provided by the State and affected   
local governmental authorities in the urbanized area during the   
preceding 3 fiscal years.  
    (c) Report.--  
            (1) In general.--Not later than January 1, 2003, 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, a report   
        on the recipients described in subsection (a) that have used, as   
        part of the local matching funds for a capital project, the   
        proceeds from the issuance of revenue bonds, during the period   
        described in subsection (a).  
            (2) Contents of report.--The report required by this   
        subsection shall include--  
                    (A) information on each project undertaken, the   
                amount of the revenue bonds issued, and the status of   
                repayment of the bonds; and  
                    (B) any recommendations of the Secretary regarding   
                the application of this section.  
  
SEC. 3012. INTELLIGENT TRANSPORTATION SYSTEMS APPLICATIONS.  
  
    (a) Fixed Guideway Technology.--The Secretary shall make grants for   
the study, design, and demonstration of fixed guideway technology. Of   
the amounts made available by or appropriated under section 5338(d) of   
title 49, United States Code, the Secretary shall make funds available   
for the following projects in not less than the amounts specified for   
the fiscal year:  
            (1) North Orange-South Seminole County, FL $750,000 for   
        fiscal year 1999.  
            (2) Galveston, TX fixed guideway activities $750,000 for   
        fiscal year 1999.  
            (3) Washoe County, NV Transit Technology, $1,250,000 for   
        each of fiscal years 1999 and 2000.  
  
    (b) Bus Technology.--The Secretary shall make grants for the study,   
design, and demonstration of bus technology. Of the amounts made   
available by or appropriated under section 5338(d) of title 49, United   
States Code, the Secretary shall make funds available for the following   
projects in not less than the amounts specified for the fiscal year:  
            (1) MBTA, MA Advanced Electric Transit Buses and Related   
        Infrastructure, $1,500,000 for each of fiscal years 1999 and   
        2000.  
            (2) Palm Springs, CA Fuel Cell Buses, $1,000,000 for each of   
        fiscal years 1999 and 2000.  
            (3) Gloucester, MA Intermodal Technology Center, $1,500,000   
        for each of fiscal years 1999 and 2000.  
  
    (c) Advanced Propulsion Control System.--  
            (1) In general.--Of the amounts made available by or   
        appropriated under section 5338(d) of title 49, United States   
        Code, $2,000,000 for fiscal year 1999, $3,000,000 for fiscal   
        year 2000, and $3,000,000 for fiscal year 2001 shall be   
        available to the Southeastern Pennsylvania Transit Authority (in   
        this subsection referred to as ``SEPTA''), to be used only for   
        the completion of the program to develop and deploy a new   
        Advanced Propulsion Control System begun under the Request for   
        Technical Proposals for Project S-2814-2.  
            (2) Action required by septa.--This subsection shall take   
        effect only if SEPTA issues a request for cost proposals to the   
        4 selectees from the full and open competition under SEPTA's   
        Request for Technical Proposals for Project S-2814-2 not later   
        than 60 days after the date of enactment of this Act.  
  
SEC. 3013. FORMULA GRANTS AND LOANS FOR SPECIAL NEEDS OF ELDERLY   
            INDIVIDUALS AND INDIVIDUALS WITH DISABILITIES.  
  
    (a) Section Heading.--Section 5310 is amended in the section heading   
by striking ``Grants'' and inserting ``Formula grants''.  
    (b) Conforming Amendment.--The item relating to section 5310 in the   
table of sections for chapter 53 is amended by inserting ``formula''   
before ``grants''.  
  
SEC. 3014. FORMULA PROGRAM FOR OTHER THAN URBANIZED AREAS.  
  
    (a) In General.--Section 5311 is amended--  
            (1) in the section heading, by striking ``Financial   
        assistance'' and inserting ``Formula grants''; and  
            (2) in subsection (f)(1) by striking ``10 percent of the   
        amount made available in the fiscal year ending September 30,   
        1993, and''.  
  
    (b) Conforming Amendment.--The item relating to section 5311 in the   
table of sections for chapter 53 is amended by striking ``Financial   
assistance'' and inserting ``Formula grant''.  
  
SEC. 3015. RESEARCH, DEVELOPMENT, DEMONSTRATION, AND TRAINING PROJECTS.  
  
    (a) In General.--Section 5312 is amended by adding at the end the   
following:  
    ``(d) Joint Partnership Program for Deployment of Innovation.--  
            ``(1) Definition of consortium.--In this subsection, the   
        term `consortium'--  
                    ``(A) means 1 or more public or private   
                organizations located in the United States that provide   
                mass transportation service to the public and 1 or more   
                businesses, including small- and medium-sized   
                businesses, incorporated in a State, offering goods or   
                services or willing to offer goods and services to mass   
                transportation operators; and  
                    ``(B) may include, as additional members, public or   
                private research organizations located in the United   
                States, or State or local governmental authorities.  
            ``(2) General authority.--The Secretary may, under terms and   
        conditions that the Secretary prescribes, enter into grants,   
        contracts, cooperative agreements, and other agreements with   
        consortia selected in accordance with paragraph (4), to promote   
        the early deployment of innovation in mass transportation   
        services, management, operational practices, or technology that   
        has broad applicability. This paragraph shall be carried out in   
        consultation with the transit industry by competitively selected   
        consortia that will share costs, risks, and rewards of early   
        deployment of innovation.  
            ``(3) Consortium contribution.--A consortium assisted under   
        this subsection shall provide not less than 50 percent of the   
        costs of any joint partnership project. Any business,  
        organization, person, or governmental body may contribute funds   
        to a joint partnership project.  
            ``(4) Notice requirement.--The Secretary shall periodically   
        give public notice of the technical areas for which joint   
        partnerships are solicited, required qualifications of consortia   
        desiring to participate, the method of selection and evaluation   
        criteria to be used in selecting participating consortia and   
        projects, and the process by which innovation projects described   
        in paragraph (1) will be awarded.  
            ``(5) Use of revenues.--The Secretary shall accept, to the   
        maximum extent practicable, a portion of the revenues resulting   
        from sales of an innovation project funded under this section.   
        Such revenues shall be accounted for separately within the Mass   
        Transit Account of the Highway Trust Fund and shall be available   
        to the Secretary for activities under this subsection. Annual   
        revenues that are less than $1,000,000 shall be available for   
        obligation without further appropriation and shall not be   
        subject to any obligation limitation.  
  
    ``(e) International Mass Transportation Program.--  
            ``(1) Activities.--The Secretary is authorized to engage in   
        activities to inform the United States domestic mass   
        transportation community about technological innovations   
        available in the international marketplace and activities that   
        may afford domestic businesses the opportunity to become   
        globally competitive in the export of mass transportation   
        products and services. Such activities may include--  
                    ``(A) development, monitoring, assessment, and   
                dissemination domestically of information about   
                worldwide mass transportation market opportunities;  
                    ``(B) cooperation with foreign public sector   
                entities in research, development, demonstration,   
                training, and other forms of technology transfer and   
                exchange of experts and information;  
                    ``(C) advocacy, in international mass transportation   
                markets, of firms, products, and services available from   
                the United States;  
                    ``(D) informing the international market about the   
                technical quality of mass transportation products and   
                services through participation in seminars, expositions,   
                and similar activities; and  
                    ``(E) offering those Federal Transit Administration   
                technical services which cannot be readily obtained from   
                the United States private sector to foreign public   
                authorities planning or undertaking mass transportation   
                projects if the cost of these services will be recovered   
                under the terms of each project.  
            ``(2) Cooperation.--The Secretary may carry out activities   
        under this subsection in cooperation with other Federal   
        agencies, State or local agencies, public and private nonprofit   
        institutions, government laboratories, foreign governments, or   
        any other organization the Secretary determines is appropriate.  
            ``(3) Funding.--The funds available to carry out this   
        subsection shall include revenues paid to the Secretary by any   
        cooperating organization or person. Such revenues shall be   
        accounted for separately within the Mass Transit Account of the   
        Highway Trust Fund and shall be available to the Secretary  
        to carry out activities under this subsection, including   
        promotional materials, travel, reception, and representation   
        expenses necessary to carry out such activities. Annual revenues   
        that are less than $1,000,000 shall be available for obligation   
        without further appropriation and shall not be subject to any   
        obligation limitation. Not later than January 1 of each fiscal   
        year, the Secretary shall publish a report on the activities   
        under this paragraph funded from the account.''.  
  
    (b) Fuel Cell Bus and Bus Facilities Program.--Of the funds made   
available for each fiscal year to carry out section 5309(m)(1)(C) of   
title 49, United States Code, $4,850,000 shall be available to carry out   
the fuel cell powered transit bus program and the intermodal   
transportation fuel cell bus maintenance facility.  
    (c) Advanced Technology Pilot Project.-- <<NOTE: 49 USC 322 note.>>   
            (1) In general.--The Secretary shall make grants for the   
        development of low speed magnetic levitation technology for   
        public transportation purposes in urban areas to demonstrate   
        energy efficiency, congestion mitigation, and safety benefits.  
            (2) Funding.--Of the amounts made available under section   
        5001(a)(2) of this Act for each of fiscal years 1998 through   
        2003, $5,000,000 per fiscal year shall be available to carry out   
        this subsection.  
            (3) Federal share.--The Federal share payable on account of   
        activities carried out using a grant made under this subsection   
        shall be 80 percent of the cost of such activities.  
  
SEC. 3016. NATIONAL PLANNING AND RESEARCH PROGRAMS.  
  
    Section 5314(a)(2) is amended by striking ``$2,000,000'' and   
inserting ``$3,000,000''.  
  
SEC. 3017. NATIONAL TRANSIT INSTITUTE.  
  
    (a) In General.--Section 5315(a) is amended--  
            (1) in paragraph (5) by inserting ``and architectural   
        design'' before the semicolon at the end;  
            (2) in paragraph (7) by striking ``carrying out'' and   
        inserting ``delivering'';  
            (3) in paragraph (11) by inserting ``, construction   
        management, insurance, and risk management'' before the   
        semicolon at the end;  
            (4) in paragraph (13) by striking ``and'' at the end;  
            (5) in paragraph (14) by striking the period at the end and   
        inserting a semicolon; and  
            (6) by adding at the end the following:  
            ``(15) innovative finance; and  
            ``(16) workplace safety.''.  
  
    (b) Conforming Amendment.--The item relating to section 5315 in the   
table of sections for chapter 53 is amended by striking ``mass   
transportation'' and inserting ``transit''.  
  
SEC. 3018. BUS TESTING FACILITIES.  
  
    (a) Operation and Maintenance.--Section 5318(b) is amended--  
            (1) by striking ``make a contract with'' and inserting   
        ``enter into a contract or cooperative agreement with, or make a   
        grant to,'';  
            (2) by inserting ``or organization'' after ``person'';  
            (3) by inserting ``, cooperative agreement, or grant'' after   
        ``The contract''; and  
            (4) by inserting ``mass transportation'' after ``and   
        other''.  
  
    (b) Availability of Amounts.--Section 5318(d) is amended by striking   
``make a contract with'' and inserting ``enter into a contract or   
cooperative agreement with, or make a grant to,''.  
  
SEC. 3019. BICYCLE FACILITIES.  
  
    Section 5319 is amended by striking ``under this section is for 90   
percent of the cost of the project'' and inserting ``made eligible by   
this section is for 90 percent of the cost of the project, except that,   
if the grant or any portion of the grant is made with funds required to   
be expended under section 5307(k) and the project involves providing   
bicycle access to mass transportation, that grant or portion of that   
grant shall be at a Federal share of 95 percent''.  
  
SEC. 3020. GENERAL PROVISIONS ON ASSISTANCE.  
  
    (a) Technical Amendment.--Section 5323(d) is amended by striking      
``Buying and Operating Buses.--'' and inserting ``Condition on Charter   
Bus Transportation Service.--''.  
    (b) Buy America.--Section 5323(j)(7) is amended to read as follows:  
            ``(7) Opportunity to correct inadvertent error.--The   
        Secretary may allow a manufacturer or supplier of steel, iron,   
        or manufactured goods to correct after bid opening any   
        certification of noncompliance or failure to properly complete   
        the certification (but not including failure to sign the   
        certification) under this subsection if such manufacturer or   
        supplier attests under penalty of perjury that such manufacturer   
        or supplier submitted an incorrect certification as a result of   
        an inadvertent or clerical error. The burden of establishing   
        inadvertent or clerical error is on the manufacturer or   
        supplier.''.  
  
    (c) Government's Share.--Section 5323(i) is amended to read as   
follows:  
    ``(i) Government Share of Costs for Certain Projects.--A grant for a   
project to be assisted under this chapter that involves acquiring   
vehicle-related equipment required by the Americans with Disabilities   
Act of 1990 (42 U.S.C. 12101 et seq.) or vehicle-related equipment   
(including clean fuel or alternative fuel vehicle-related equipment) for   
purposes of complying with or maintaining compliance with the Clean Air   
Act, is for 90 percent of the net project cost of such equipment   
attributable to compliance with those Acts. The Secretary shall have   
discretion to determine, through practicable administrative procedures,   
the costs of such equipment attributable to compliance with those   
Acts.''.  
    (d) HHS and Public Transit Service.--Section 5323 is amended--  
            (1) by redesignating subsections (k) and (l) as subsections   
        (l) and (m), respectively; and  
            (2) by inserting after subsection (j) the following:  
  
    ``(k) Participation of Governmental Agencies in Design and Delivery   
of Transportation Services.--To the extent feasible, governmental   
agencies and nonprofit organizations that receive assistance from   
Government sources (other than the Department of Transportation) for   
nonemergency transportation services--  
            ``(1) shall participate and coordinate with recipients of   
        assistance under this chapter in the design and delivery of   
        transportation services; and  
            ``(2) shall be included in the planning for those   
        services.''.  
    (e) Submission of Certifications.--Section 5323 is amended by adding   
at the end the following:  
    ``(n) Submission of Certifications.--A certification required under   
this chapter and any additional certification or assurance required by   
law or regulation to be submitted to the Secretary may be consolidated   
into a single document to be submitted annually as part of a grant   
application under this chapter. <<NOTE: Publication.>>  The Secretary   
shall publish annually a list of all certifications required under this   
chapter with the publication required under section 5336(e)(2).''.  
  
    (f) Grant Requirements.--Section 5323 is amended by adding at the   
end the following:  
    ``(o) Grant Requirements.--The grant requirements under sections   
5307 and 5309 apply to any project under this chapter that receives any   
assistance or other financing under the Transportation Infrastructure   
Finance and Innovation Act of 1998.''.  
  
SEC. 3021. <<NOTE: 49 USC 5307 note.>>  PILOT PROGRAM FOR INTERCITY
RAIL INFRASTRUCTURE INVESTMENT FROM MASS TRANSIT ACCOUNT OF   
            HIGHWAY TRUST FUND.  
  
    (a) In General.--The Secretary shall establish a pilot program to   
determine the benefits of using funds from the Mass Transit Account of   
the Highway Trust Fund for intercity passenger rail. Any assistance   
provided to the State of Oklahoma under sections 5307 and 5311 of title   
49, United States Code, during fiscal years 1998 through 2003 may be   
used for capital improvements to, and operating assistance for,   
intercity passenger rail service.  
    (b) Report.--  
            (1) In general.--Not later than October 1, 2002, 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 a report on   
        the pilot program established under this section.  
            (2) Contents.--The report submitted under paragraph (1)   
        shall include--  
                    (A) an evaluation of the effect of the pilot program   
                on alternative forms of transportation within the State   
                of Oklahoma;  
                    (B) an evaluation of the effect of the program on   
                operators of mass transportation and their passengers;  
                    (C) a calculation of the amount of Federal   
                assistance provided under this section transferred for   
                the provision of intercity passenger rail service; and  
                    (D) an estimate of the benefits to intercity   
                passenger rail service, including the number of   
                passengers served, the number of route miles covered,   
                and the number of localities served by intercity   
                passenger rail service.  
  
SEC. 3022. CONTRACT REQUIREMENTS.  
  
    (a) Efficient Procurement.--Section 5325 is amended--  
            (1) by striking subsections (b) and (c);  
            (2) by redesignating subsection (d) as subsection (b); and  
            (3) by adding at the end the following:  
  
    ``(c) Efficient Procurement.--A recipient may award a procurement   
contract under this chapter to other than the lowest bidder when the   
award furthers an objective consistent with the purposes of this   
chapter, including improved long-term operating efficiency and lower   
long-term costs.''.  

SEC. 3023. SPECIAL PROCUREMENTS.  
  
    (a) Turnkey System Projects.--Section 5326(a) is amended--  
            (1) by striking paragraph (1) and inserting the following:  
            ``(1) Turnkey system project defined.--In this subsection,   
        the term `turnkey 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 mass 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) in paragraph (2)--  
                    (A) by inserting ``Selection of turnkey proj-   
                ects.--'' after ``(2)''; and  
                    (B) by inserting ``or an operable segment of a mass   
                transportation system'' after ``transportation system'';  
            (3) in paragraph (3) by inserting ``Demonstrations.--''   
        after ``(3)''; and  
            (4) by aligning paragraphs (2) and (3) with paragraph (1) of   
        such section, as amended by paragraph (1) of this section.  
  
    (b) Technical Amendment.--Section 5326 is amended by striking   
subsection (c) and inserting the following:  
    ``(c) 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.  
  
    ``(d) Procuring Associated Capital Maintenance Items.--A recipient   
of assistance under section 5307 procuring an associated capital   
maintenance item under section 5307(b) may enter into a contract   
directly with the original manufacturer or supplier of the item to be   
replaced, without receiving prior approval of the Secretary, if the   
recipient first certifies in writing to the Secretary that--  
            ``(1) the manufacturer or supplier is the only source for   
        the item; and  
            ``(2) the price of the item is no more than the price that   
        similar customers pay for the item.''.  
  
    (c) Conforming Amendment.--Section 5334(b)(4) is amended by striking   
``5323(a)(2), (c) and (e), 5324(c), and 5325 of this title'' and   
inserting ``5323(a)(2), 5323(c), 5323(e), 5324(c), 5325(a), 5325(b),   
5326(c), and 5326(d)''.  
  
SEC. 3024. PROJECT MANAGEMENT OVERSIGHT AND REVIEW.  
  
    (a) Limitation on Use of Available Amounts.--Section 5327(c)(2) is   
amended--  
            (1) by striking ``make contracts'' and inserting ``enter   
        into contracts''; and  
            (2) by inserting before the period at the end of the first   
        sentence the following: ``and to provide technical assistance to   
        correct deficiencies identified in compliance reviews and audits   
        carried out under this section''.  
    (b) Financial Plan.--Section 5327 is amended by adding at the end   
the following:  
    ``(f) Financial Plan.--A recipient of financial assistance for a   
project under this chapter with an estimated total cost of   
$1,000,000,000 or more shall submit to the Secretary an annual financial   
plan for the project. The plan shall be based on detailed annual   
estimates of the cost to complete the remaining elements of the project   
and on reasonable assumptions, as determined by the Secretary, of future   
increases in the cost to complete the project.''.  
  
SEC. 3025. ADMINISTRATIVE PROCEDURES.  
  
    (a) Training and Conference Costs.--Section 5334(a) is amended--  
            (1) in paragraph (8) by striking ``and'' at the end;  
            (2) in paragraph (9) by striking the period at the end and   
        inserting ``; and''; and  
            (3) by adding at the end the following:  
            ``(10) collect fees to cover the costs of training or   
        conferences, including costs of promotional materials, sponsored   
        by the Federal Transit Administration to promote mass   
        transportation and credit amounts collected to the appropriation   
        concerned.''.  
  
    (b) Technical Amendments.--  
            (1) Section heading.--The heading for section 5334 is   
        amended by inserting ``provisions'' after ``Administrative''.  
            (2) Table of sections.--The item relating to section 5334 in   
        the table of sections for chapter 53 is amended by inserting   
        ``provisions'' after ``Administrative''.  
  
    (c) Proceeds From Sale of Transit Assets.--Section 5334(g) is   
amended by adding at the end the following:  
            ``(4) Proceeds from the sale of transit assets.--  
                    ``(A) In general.--When real property, equipment, or   
                supplies acquired with assistance under this chapter are   
                no longer needed for mass transportation purposes as   
                determined under the applicable assistance agreement,   
                the Secretary may authorize the sale, transfer, or lease   
                of the assets under conditions determined by the   
                Secretary and subject to the requirements of this   
                subsection.  
                    ``(B) Use.--The net income from asset sales, uses,   
                or leases (including lease renewals) under this   
                subsection shall be used by the recipient to reduce the   
                gross project cost of other capital projects carried out   
                under this chapter.  
                    ``(C) Relationship to other authority.--The   
                authority of the Secretary under this subsection is in   
                addition to existing authorities controlling allocation   
                or use of recipient income otherwise permissible in law   
                or regulation in effect prior to the date of enactment   
                of this paragraph.''.  
  
SEC. 3026. REPORTS AND AUDITS.  
  
    (a) National Transit Database.--Section 5335(a) is amended--  
            (1) by striking ``Reporting System and Uniform System of   
        Accounts and Records'' and inserting ``National Transit   
        Database''; and  
            (2) in paragraph (1)--  
                    (A) by striking ``by uniform categories,'' and   
                inserting ``using uniform categories''; and  
                    (B) by striking ``and a uniform system of accounts   
                and records'' and inserting ``and using a uniform system   
                of accounts''.  
  
    (b) Reports.--Section 5335 is amended--  
            (1) by striking subsections (b) and (c); and  
            (2) by redesignating subsection (d) as subsection (b).  
  
SEC. 3027. APPORTIONMENT OF APPROPRIATIONS FOR FORMULA GRANTS.  
  
    (a) In General.--Section 5336 is amended in the section heading by   
striking ``block grants'' and inserting ``formula grants''.  
    (b) Repeal.--Section 5336(d) is amended to read as follows:  
    ``(d) [Reserved.]''.  
    (c) <<NOTE: 49 USC 5307 note.>>  Continuation of Operating   
Assistance to Certain Larger Urbanized Areas.--  
            (1) Provision of assistance.--Notwithstanding any other   
        provision of law, during the period described in paragraph (2),   
        the Secretary may continue to provide assistance under section   
        5307 of title 49, United States Code, to finance the operating   
        costs of equipment and facilities for use in mass transportation   
        in any urbanized area (as that term is defined in section 5302   
        of title 49, United States Code) with a population of at least   
        200,000, if the Secretary determines that--  
                    (A) the number of the total bus revenue vehicle-  
                miles operated in or directly serving the area is less   
                than 600,000; and  
                    (B) the number of buses operated in or directly   
                serving the area does not exceed 15.  
            (2) Period described.--For purposes of paragraph (1), the   
        period described in this paragraph is the period beginning on   
        the date of enactment of this Act and ending on the earlier of--  
                    (A) 3 years after the date of enactment of this Act;   
                and  
                    (B) the date on which the Secretary determines   
                that--  
                          (i) the number of the total bus revenue   
                      vehicle-miles operated in or directly serving the   
                      area is greater than or equal to 600,000; and  
                          (ii) the number of buses operated in or   
                      directly serving the area exceeds 15.  
  
SEC. 3028. APPORTIONMENT OF APPROPRIATIONS FOR FIXED GUIDEWAY   
            MODERNIZATION.  
  
    (a) Distribution.--Section 5337(a) is amended to read as follows:  
    ``(a) Distribution.--The Secretary shall apportion amounts made   
available for fixed guideway modernization under section 5309 for each   
of fiscal years 1998 through 2003 as follows:  
            ``(1) The first $497,700,000 shall be apportioned in the   
        following urbanized areas as follows:  
                    ``(A) Baltimore, $8,372,000.  
                    ``(B) Boston, $38,948,000.  
                    ``(C) Chicago/Northwestern Indiana, $78,169,000.  
                    ``(D) Cleveland, $9,509,500.  
                    ``(E) New Orleans, $1,730,588.  
                    ``(F) New York, $176,034,461.  
                    ``(G) Northeastern New Jersey, $50,604,653.  
                    ``(H) Philadelphia/Southern New Jersey, $58,924,764.  
                    ``(I) Pittsburgh, $13,662,463.  
                    ``(J) San Francisco, $33,989,571.  
                    ``(K) Southwestern Connecticut, $27,755,000.  
            ``(2) The next $70,000,000 shall be apportioned as follows:  
                    ``(A) 50 percent in the urbanized areas listed in   
                paragraph (1), as provided in section 5336(b)(2)(A).  
                    ``(B) 50 percent in other urbanized areas eligible   
                for assistance under section 5336(b)(2)(A) to which   
                amounts were apportioned under this section for fiscal   
                year 1997, as provided in section 5336(b)(2)(A) and   
                subsection (e) of this section.  
            ``(3) The next $5,700,000 shall be apportioned in the   
        following urbanized areas as follows:  
                    ``(A) Pittsburgh, 61.76 percent.  
                    ``(B) Cleveland, 10.73 percent.  
                    ``(C) New Orleans, 5.79 percent.  
                    ``(D) 21.72 percent in urbanized areas to which   
                paragraph (2)(B)(ii) applies, as provided in section   
                5336(b)(2)(A) and subsection (e) of this section.  
            ``(4) The next $186,600,000 shall be apportioned in each   
        urbanized area to which paragraph (1) applies and in each   
        urbanized area to which paragraph (2)(B) applies, as provided in   
        section 5336(b)(2)(A) and subsection (e) of this section.  
            ``(5) The next $70,000,000 shall be apportioned as follows:  
                    ``(A) 65 percent in the urbanized areas listed in   
                paragraph (1), as provided in section 5336(b)(2)(A) and   
                subsection (e) of this section.  
                    ``(B) 35 percent to other urbanized areas eligible   
                for assistance under section 5336(b)(2)(A) if the areas   
                contain fixed guideway systems placed in revenue service   
                at least 7 years before the fiscal year in which amounts   
                are made available and in any urbanized area if, before   
                the first day of the fiscal year, the area satisfies the   
                Secretary that the area has modernization needs that   
                cannot adequately be met with amounts received under   
                section 5336(b)(2)(A), as provided in section   
                5336(b)(2)(A) and subsection (e) of this section.  
            ``(6) The next $50,000,000 shall be apportioned as follows:  
                    ``(A) 60 percent in the urbanized areas listed in   
                paragraph (1), as provided in section 5336(b)(2)(A) and   
                subsection (e) of this section.  
                    ``(B) 40 percent to urbanized areas to which   
                paragraph (5)(B) applies, as provided in section   
                5336(b)(2)(A) and subsection (e) of this section.  
            ``(7) Remaining amounts shall be apportioned as follows:  
                    ``(A) 50 percent in the urbanized areas listed in   
                paragraph (1), as provided in section 5336(b)(2)(A) and   
                subsection (e) of this section.  
                    ``(B) 50 percent to urbanized areas to which   
                paragraph (5)(B) applies, as provided in section   
                5336(b)(2)(A) and subsection (e) of this section.''.  
  
    (b) Route Segments To Be Included in Apportionment Formulas.--  
Section 5337 is amended by adding at the end the following:  
    ``(e) Route Segments To Be Included in Apportionment Formulas.--  
            ``(1) 1997 standard.--Amounts apportioned under paragraphs   
        (2)(B), (3), and (4) of subsection (a) shall have attributable   
        to each urbanized area only the number of fixed guideway revenue   
        miles of service and number of fixed guideway route miles for   
        segments of fixed guideway systems used to determine   
        apportionments for fiscal year 1997.  
            ``(2) Other standards.--Amounts apportioned under paragraphs   
        (5) through (7) of subsection (a) shall have attributable to   
        each urbanized area only the number of fixed guideway revenue   
        miles of service and number of fixed guideway route-miles for   
        segments of fixed guideway systems placed in revenue service at   
        least 7 years before the fiscal year in which amounts are made   
        available.''.  
  
SEC. 3029. AUTHORIZATIONS.  
  
    (a) In General.--Section 5338 is amended to read as follows:  
  
``Sec. 5338. Authorizations  
  
    ``(a) Formula Grants.--  
            ``(1) Fiscal year 1998.--  
                    ``(A) From the trust fund.--There shall be available   
                from the Mass Transit Account of the Highway Trust Fund   
                to carry out sections 5307, 5310, and 5311,   
                $2,260,000,000 for fiscal year 1998.  
                    ``(B) From the general fund.--In addition to amounts   
                made available under subparagraph (A), there are   
                authorized to be appropriated to carry out sections   
                5307, 5310, and 5311, $240,000,000 for fiscal year 1998.  
                    ``(C) Allocation of funds.--Of the aggregate of   
                amounts made available by and appropriated under this   
                paragraph for a fiscal year--  
                          ``(i) $4,849,950 shall be available to the   
                      Alaska Railroad for improvements to its passenger   
                      operations under section 5307;  
                          ``(ii) $62,219,389 shall be available to   
                      provide transportation services to elderly   
                      individuals and individuals with disabilities   
                      under section 5310;  
                          ``(iii) $134,077,934 shall be available to   
                      provide financial assistance for other than   
                      urbanized areas under section 5311; and  
                          ``(iv) $2,298,852,727 shall be available to   
                      provide financial assistance for urbanized areas   
                      under section 5307.  
            ``(2) Fiscal years 1999 through 2003.--  
                    ``(A) From the trust fund.--There shall be available   
                from the Mass Transit Account of the Highway Trust Fund   
                to carry out sections 5307, 5308, 5310, and 5311--  
                          ``(i) $2,280,000,000 for fiscal year 1999;  
                          ``(ii) $2,478,400,000 for fiscal year 2000;  
                          ``(iii) $2,676,000,000 for fiscal year 2001;  
                          ``(iv) $2,873,600,000 for fiscal year 2002;   
                      and  
                          ``(v) $3,071,200,000 for fiscal year 2003.  
                    ``(B) From the general fund.--In addition to amounts   
                made available under subparagraph (A), there are   
                authorized to be appropriated to carry out sections   
                5307, 5308, 5310, and 5311--  
                          ``(i) $570,000,000 for fiscal year 1999;  
                          ``(ii) $619,600,000 for fiscal year 2000;  
                          ``(iii) $669,000,000 for fiscal year 2001;  
                          ``(iv) $718,400,000 for fiscal year 2002; and  
                          ``(v) $767,800,000 for fiscal year 2003.  
                    ``(C) Allocation of funds.--Of the aggregate of   
                amounts made available by and appropriated under this   
                paragraph for a fiscal year--  
                          ``(i) $4,849,950 shall be available to the   
                      Alaska Railroad for improvements to its passenger   
                      operations under section 5307;  
                          ``(ii) $50,000,000 shall be available to carry   
                      out section 5308; and  
                          ``(iii) of the remaining amount--  
                                    ``(I) 2.4 percent shall be available   
                                to provide transportation services to   
                                elderly individuals and individuals with   
                                disabilities under section 5310;  
                                    ``(II) 6.37 percent shall be   
                                available to provide financial   
                                assistance for other than urbanized   
                                areas under section 5311; and  
                                    ``(III) 91.23 percent shall be   
                                available to provide financial   
                                assistance for urbanized areas under   
                                section 5307.  
  
    ``(b) Capital Program Grants and Loans.--  
            ``(1) Fiscal year 1998.--There shall be available from the   
        Mass Transit Account of the Highway Trust Fund to carry out   
        section 5309, $2,000,000,000 for fiscal year 1998.  
            ``(2) Fiscal years 1999 through 2003.--  
                    ``(A) From the trust fund.--There shall be available   
                from the Mass Transit Account of the Highway Trust Fund   
                to carry out section 5309--  
                          ``(i) $1,805,600,000 for fiscal year 1999;  
                          ``(ii) $1,960,800,000 for fiscal year 2000;  
                          ``(iii) $2,116,800,000 for fiscal year 2001;  
                          ``(iv) $2,272,800,000 for fiscal year 2002;   
                      and  
                          ``(v) $2,428,800,000 for fiscal year 2003.  
                    ``(B) From the general fund.--In addition to amounts   
                made available under subparagraph (A), there are   
                authorized to be appropriated to carry out section   
                5309--  
                          ``(i) $451,400,000 for fiscal year 1999;  
                          ``(ii) $490,200,000 for fiscal year 2000;  
                          ``(iii) $529,200,000 for fiscal year 2001;  
                          ``(iv) $568,200,000 for fiscal year 2002; and  
                          ``(v) $607,200,000 for fiscal year 2003.  
  
    ``(c) Planning.--  
            ``(1) Fiscal year 1998.--There are authorized to be   
        appropriated to carry out sections 5303, 5304, 5305, and   
        5313(b), $47,750,000 for fiscal year 1998.  
            ``(2) Fiscal years 1999 through 2003.--  
                    ``(A) From the trust fund.--There shall be available   
                from the Mass Transit Account of the Highway Trust Fund   
                to carry out sections 5303, 5304, 5305, and 5313(b)--  
                          ``(i) $43,200,000 for fiscal year 1999;  
                          ``(ii) $46,400,000 for fiscal year 2000;  
                          ``(iii) $51,200,000 for fiscal year 2001;  
                          ``(iv) $52,800,000 for fiscal year 2002; and  
                          ``(v) $57,600,000 for fiscal year 2003.  
                    ``(B) From the general fund.--In addition to amounts   
                made available under subparagraph (A), there are   
                authorized to be appropriated to carry out sections   
                5303, 5304, 5305, and 5313(b)--  
                          ``(i) $10,800,000 for fiscal year 1999;  
                          ``(ii) $11,600,000 for fiscal year 2000;  
                          ``(iii) $12,800,000 for fiscal year 2001;  
                          ``(iv) $13,200,000 for fiscal year 2002; and  
                          ``(v) $14,400,000 for fiscal year 2003.  
                    ``(C) Allocation of funds.--Of the funds made   
                available by or appropriated under this paragraph for a   
                fiscal year--  
                          ``(i) 82.72 percent shall be available for   
                      metropolitan planning under sections 5303, 5304,   
                      and 5305; and  
                          ``(ii) 17.28 percent shall be available for   
                      State planning under section 5313(b).  
  
    ``(d) Research.--  
            ``(1) Fiscal year 1998.--There are authorized to be   
        appropriated to carry out sections 5311(b)(2), 5312, 5313(a),   
        5314, 5315, and 5322, $44,250,000 for fiscal year 1998.  
            ``(2) Fiscal years 1999 through 2003.--  
                    ``(A) From the trust fund.--There shall be available   
                from the Mass Transit Account of the Highway Trust Fund   
                to carry out sections 5311(b)(2), 5312, 5313(a), 5314,   
                5315, and 5322--  
                          ``(i) $36,000,000 for fiscal year 1999;  
                          ``(ii) $37,600,000 for fiscal year 2000;  
                          ``(iii) $37,600,000 for fiscal year 2001;  
                          ``(iv) $39,200,000 for fiscal year 2002; and  
                          ``(v) $39,200,000 for fiscal year 2003.  
                    ``(B) From the general fund.--In addition to amounts   
                made available under subparagraph (A), there are   
                authorized to be appropriated to carry out sections   
                5311(b)(2), 5312, 5313(a), 5314, 5315, and 5322--  
                          ``(i) $9,000,000 for fiscal year 1999;  
                          ``(ii) $9,400,000 for fiscal year 2000;  
                          ``(iii) $9,400,000 for fiscal year 2001;  
                          ``(iv) $9,800,000 for fiscal year 2002; and  
                          ``(v) $9,800,000 for fiscal year 2003.  
                    ``(C) Allocation of funds.--Of the funds made   
                available by or appropriated under this paragraph for a   
                fiscal year--  
                          ``(i) not less than $5,250,000 shall be   
                      available for providing rural transportation   
                      assistance under section 5311(b)(2);  
                          ``(ii) not less than $8,250,000 shall be   
                      available for carrying out transit cooperative   
                      research programs under section 5313(a);  
                          ``(iii) not less than $4,000,000 shall be   
                      available to carry out programs under the National   
                      Transit Institute under section 5315; and  
                          ``(iv) the remainder shall be available for   
                      carrying out national planning and research   
                      programs under sections 5311(b)(2), 5312, 5313(a),   
                      5314, and 5322.  
  
    ``(e) University Transportation Research.--  
            ``(1) Fiscal year 1998.--There are authorized to be   
        appropriated to carry out section 5317(b) $6,000,000 for fiscal   
        year 1998.  
            ``(2) Fiscal years 1999 through 2003.--  
                    ``(A) From the trust fund.--There shall be available   
                from the Mass Transit Account of the Highway Trust Fund   
                to carry out section 5317(b), $4,800,000 for each of   
                fiscal years 1999 through 2003.  
                    ``(B) From the general fund.--In addition to amounts   
                made available under subparagraph (A), there are   
                authorized to be appropriated to carry out section   
                5317(b), $1,200,000 for each of fiscal years 1999   
                through 2003.  
  
    ``(f) Administration.--  
            ``(1) Fiscal year 1998.--There are authorized to be   
        appropriated to carry out section 5334, $45,738,000 for fiscal   
        year 1998.  
            ``(2) Fiscal years 1999 through 2003.--  
                    ``(A) From the trust fund.--There shall be available   
                from the Mass Transit Account of the Highway Trust Fund   
                to carry out section 5334--  
                          ``(i) $43,200,000 for fiscal year 1999;  
                          ``(ii) $48,000,000 for fiscal year 2000;  
                          ``(iii) $51,200,000 for fiscal year 2001;  
                          ``(iv) $53,600,000 for fiscal year 2002; and  
                          ``(v) $58,400,000 for fiscal year 2003.  
                    ``(B) From the general fund.--In addition to amounts   
                made available under subparagraph (A), there are   
                authorized to be appropriated to carry out section   
                5334--  
                          ``(i) $10,800,000 for fiscal year 1999;  
                          ``(ii) $12,000,000 for fiscal year 2000;  
                          ``(iii) $12,800,000 for fiscal year 2001;  
                          ``(iv) $13,400,000 for fiscal year 2002; and  
                          ``(v) $14,600,000 for fiscal year 2003.  
  
    ``(g) Grants as Contractual Obligations.--  
            ``(1) Grants financed from the highway trust fund.--A grant   
        or contract approved by the Secretary, that is financed with   
        amounts made available under subsection (a)(1)(A), (a)(2)(A),   
        (b)(1), (b)(2)(A), (c)(2)(A), (d)(2)(A), (e)(2)(A), or (f)(2)(A)   
        is a contractual obligation of the United States Government to   
        pay the Government's share of the cost of the project.  
            ``(2) Grants financed from general funds.--A grant or   
        contract, approved by the Secretary, that is financed with   
        amounts made available under subsection (a)(1)(B), (a)(2)(B),   
        (b)(2)(B), (c)(2)(B), (d)(2)(B), (e)(2)(B), (f)(2)(B), or (h) 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.  
  
    ``(h) Additional Amounts.--In addition to amounts made available by   
or appropriated under subsections (a) through (f), there are authorized   
to be appropriated--  
            ``(1) to carry out sections 5303, 5304, 5305, and 5313(b)--  
                    ``(A) for fiscal year 1999, $32,000,000;  
                    ``(B) for fiscal year 2000, $33,000,000;  
                    ``(C) for fiscal year 2001, $34,000,000;  
                    ``(D) for fiscal year 2002, $35,000,000; and  
                    ``(E) for fiscal year 2003, $36,000,000;  
            ``(2) to carry out section 5307, $150,000,000 for each of   
        fiscal years 1999 through 2003;  
            ``(3) to carry out section 5308, $100,000,000 for each of   
        fiscal years 1999 through 2003;  
            ``(4) to carry out section 5309(m)(1)(A), $100,000,000 for   
        each of fiscal years 1999 through 2003;  
            ``(5) to carry out section 5309(m)(1)(B)--  
                    ``(A) for fiscal year 1999, $600,000,000;  
                    ``(B) for fiscal year 2000, $610,000,000;  
                    ``(C) for fiscal year 2001, $620,000,000;  
                    ``(D) for fiscal year 2002, $630,000,000; and  
                    ``(E) for fiscal year 2003, $630,000,000;  
            ``(6) to carry out section 5309(m)(1)(C), $100,000,000 for   
        each of fiscal years 1999 through 2003;  
            ``(7) to carry out sections 5311(b)(2), 5312, 5313(a), 5314,   
        5315, and 5322--  
                    ``(A) for fiscal year 1999, $31,000,000;  
                    ``(B) for fiscal year 2000, $31,000,000;  
                    ``(C) for fiscal year 2001, $33,000,000;  
                    ``(D) for fiscal year 2002, $33,000,000; and  
                    ``(E) for fiscal year 2003, $34,000,000; and  
            ``(8) to carry out section 5334--  
                    ``(A) for fiscal year 1999, $13,000,000;  
                    ``(B) for fiscal year 2000, $14,000,000;  
                    ``(C) for fiscal year 2001, $16,000,000;  
                    ``(D) for fiscal year 2002, $17,000,000; and  
                    ``(E) for fiscal year 2003, $18,000,000.  
  
    ``(i) Availability of Amounts.--Amounts made available by or   
appropriated under subsections (a) through (e), and paragraphs (1)   
through (7) of subsection (h), shall remain available until expended.''.  
    (b) Conforming Amendments.--Chapter 53 is amended as follows:  
            (1) In sections 5303(h)(1), 5303(h)(2)(A), and   
        5303(h)(3)(A), by striking ``section 5338(g)(1)'' each place it   
        appears and inserting ``subsection (c) or (h)(1) of section   
        5338''.  
            (2) In section 5303(h)(1) by striking ``-5306'' and   
        inserting ``and 5305''.  
            (3) In section 5303(h)(4) by striking ``section 5338(g)''   
        and inserting ``subsection (c) or (h)(1) of section 5338''.  
            (4) In section 5313(a)(1) by striking ``Fifty percent of the   
        amounts made available under section 5338(g)(3)'' and inserting   
        ``The amounts made available under paragraphs (1) and (2)(C)(ii)   
        of section 5338(d)''.  
            (5) In section 5313(b)(1) by striking ``Fifty percent of the   
        amounts made available under section 5338(g)(3)'' and inserting   
        ``The amounts made available under paragraphs (1) and (2)(C)(ii)   
        of section 5338(c)''.  
            (6) In section 5314(a)(1) by striking ``section 5338(g)(4)''   
        and inserting ``subsections (d) and (h)(7) of section 5338''.  
            (7) In section 5317(e)(5)(C) by striking ``5338(e)(2)'' and   
        inserting ``5338(e)''.  
            (8) In section 5318(d) by striking ``5338(j)(5)'' and   
        inserting ``5309(m)(1)(C)''.  
            (9) In section 5333(b) by striking ``5338(j)(5)'' each place   
        it appears and inserting ``5338(b)''.  
            (10) In section 5336(a) by striking ``5338(f)'' and   
        inserting ``5338(a)''.  
            (11) In section 5336(e)(1) by striking ``section 5338(f)''   
        and inserting ``subsections (a) and (h)(2) of section 5338''.  
            (12) In section 5337(e)(1) by striking ``section 5338(f)''   
        and inserting ``subsections (b) and (h)(4) of section 5338''.  
  
SEC. 3030. PROJECTS FOR NEW FIXED GUIDEWAY SYSTEMS AND EXTENSIONS TO   
            EXISTING SYSTEMS.  
  
    (a) Final Design and Construction.--The following projects are   
authorized for final design and construction for fiscal years 1998   
through 2003 under section 5309(m)(1)(B) of title 49, United States   
Code:  
            (1) Atlanta--Athens Commuter Rail.  
            (2) Atlanta--Griffin Commuter Rail.