SECTION 1. BUS AND BUS FACILITIES STATE OF GOOD REPAIR DISCRETIONARY 
              GRANTS.

    (a) In General.--Chapter 53 of title 49, United States Code, is 
amended by adding at the end the following:
``Sec. 5341. Bus and bus facilities state of good repair discretionary 
              grants
    ``(a) Definitions.--In this section--
            ``(1) the term `State' means a State of the United States; 
        and
            ``(2) the term `territory' means the District of Columbia, 
        Puerto Rico, the Northern Mariana Islands, Guam, American 
        Samoa, and the United States Virgin Islands.
    ``(b) General Authority.--The Secretary shall make grants under 
this section to assist eligible recipients described in subsection 
(e)(1) in financing capital projects to maintain bus and bus facilities 
systems in a state of good repair, including projects--
            ``(1) to replace, rehabilitate, and purchase buses and 
        related equipment; and
            ``(2) to construct bus-related facilities.
    ``(c) Grant Criteria.--In making grants under this section, the 
Secretary--
            ``(1) with respect to a bus and bus facilities system, 
        shall consider--
                    ``(A) project readiness;
                    ``(B) the level of commitment of non-Federal funds 
                and the availability of a local financial commitment 
                that exceeds the required non-Federal share of the cost 
                of the project; and
                    ``(C) project justification;
            ``(2) with respect to the replacement, rehabilitation, and 
        purchase of buses and related equipment, and the construction 
        of bus-related facilities, shall consider--
                    ``(A) condition;
                    ``(B) the need to comply with any applicable legal 
                requirements relating to reinvestment; and
                    ``(C) the status of components; and
            ``(3) in considering the factors under paragraphs (1) and 
        (2), shall give priority consideration to vehicle age and 
        mileage.
    ``(d) Grant Requirements.--The requirements of section 5307 apply 
to recipients of grants made under this section.
    ``(e) Eligible Recipients and Subrecipients.--
            ``(1) Recipients.--Eligible recipients under this section 
        are designated recipients that operate bus service or that 
        allocate funding to bus operators.
            ``(2) Subrecipients.--A designated recipient that receives 
        a grant under this section may allocate amounts of the grant to 
        subrecipients that are public agencies or private nonprofit 
        organizations engaged in public transportation.
    ``(f) Government's Share of Costs.--
            ``(1) Capital projects.--A grant for a capital project 
        under this section shall be for 80 percent of the net capital 
        costs of the project. A recipient of a grant under this section 
        may provide additional local matching amounts.
            ``(2) Remaining costs.--The remainder of the net project 
        cost shall be provided--
                    ``(A) in cash from non-Government sources other 
                than revenues from providing public transportation 
                services;
                    ``(B) from revenues derived from the sale of 
                advertising and concessions;
                    ``(C) from an undistributed cash surplus, a 
                replacement or depreciation cash fund or reserve, or 
                new capital; or
                    ``(D) from amounts received under a service 
                agreement with a State or local social service agency 
                or private social service organization.
    ``(g) Period of Availability to Recipients.--Amounts made available 
to carry out this section may be obligated by a recipient for 3 fiscal 
years after the fiscal year in which the amount is appropriated. Not 
later than 30 days after the end of the 3-year period described in the 
preceding sentence, any amount that is not obligated on the last day of 
that period shall be added to the amount that may be appropriated to 
carry out this section in the next fiscal year.
    ``(h) Funding Limit.--Not more than 4 percent of the amounts made 
available under section 5338 to carry out this section for a fiscal 
year shall be made available to a single recipient.
    ``(i) Bus and Bus Facilities Formula Grants.--
            ``(1) Rule of construction.--Nothing in this section shall 
        be construed to prohibit a recipient from receiving a grant 
        under section 5339 and a grant under this section.
            ``(2) Funding for formula grants.--Of the amounts made 
        available under section 5338 to carry out this section for a 
        fiscal year, $62,500,000 shall be available for the bus and bus 
        facilities program under section 5339, of which $1,250,000 
        shall be apportioned to each State.''.
    (b) Funding.--Section 5338 of title 49, United States Code, is 
amended--
            (1) by redesignating subsections (j) and (k) as subsections 
        (k) and (l), respectively; and
            (2) by inserting after subsection (i) the following:
    ``(j) Bus and Bus Facilities State of Good Repair Discretionary 
Grants.--There are authorized to be appropriated out of the Mass 
Transit Account of the Highway Trust Fund to carry out section 5341--
            ``(1) $492,000,000 for fiscal year 2016;
            ``(2) $687,000,000 for fiscal year 2017;
            ``(3) $777,000,000 for fiscal year 2018;
            ``(4) $878,000,000 for fiscal year 2019;
            ``(5) $992,000,000 for fiscal year 2020; and
            ``(6) $1,389,000,000 fiscal year 2021.''.
    (c) Initial Grants.--Not later than 180 days after the date of 
enactment of this Act, the Secretary of Transportation shall begin 
making grants under section 5341 of title 49, United States Code, as 
added by subsection (b).
    (d) Technical and Conforming Amendment.--The table of sections for 
chapter 53 of title 49, United States Code, is amended by adding at the 
end the following:

``5341. Bus and bus facilities state of good repair discretionary 
                            grants.''.
This bill requires the Department of Transportation to make grants to assist eligible recipients in financing capital projects to maintain bus and bus facilities systems in a state of good repair, including projects to: (1) replace, rehabilitate, and purchase buses and related equipment; and (2) construct bus-related facilities.  Eligible recipients are designated recipients that operate bus service or that allocate funding to bus operators. Grant recipients may: (1) allocate amounts to subrecipients that are public agencies or private nonprofit organizations engaged in public transportation, and (2) obligate funds for three fiscal years after the fiscal year in which the amount is appropriated.  The bill limits to 4% the percentage of funding made available for this Act in a fiscal year that may be provided to a single recipient.
A bill to establish a bus state of good repair program.