H. R. 2400—233
portions of rail trackage rights agreements, transit-related
intelligent transportation systems, relocation assistance,
acquiring replacement housing sites, and acquiring, con-
structing, relocating, and rehabilitating replacement hous-
ing;
‘‘(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, pedes-
trian and bicycle access to a mass transportation facility,
and the renovation and improvement of historic transpor-
tation 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, surveil-
lance 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 reve-
nue-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 transpor-
tation; 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 regu-
lation’ means a regulation—
H. R. 2400—234
‘‘(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 wheel-
chair user or has semiambulatory capability), cannot use effec-
tively, 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 subdivi-
sion of a State;
‘‘(C) an Indian tribe; and
‘‘(D) a public corporation, board, or commission estab-
lished under the laws of a State.
‘‘(7) MASS
TRANSPORTATION.—The term ‘mass transpor-
tation’ 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 sightsee-
ing 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 transpor-
tation’ 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 Sec-
retary of Transportation.
H. R. 2400—235
‘‘(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 transpor-
tation.
‘‘(15) TRANSIT ENHANCEMENT.—The term ‘transit enhance-
ment’ 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 Sec-
retary.
‘‘(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.
H. R. 2400—236
‘‘(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 func-
tion as an intermodal transportation system for the metropoli-
tan 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 com-
prehensive 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 plan-
ning 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 transpor-
tation 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 peo-
ple and freight;
‘‘(F) promote efficient system management and oper-
ation; and
‘‘(G) emphasize the preservation of the existing
transportation system.
‘‘(2) FAILURE TO CONSIDER FACTORS.—The failure to con-
sider any factor specified in paragraph (1) shall not be review-
able 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 Com-
merce)’’ 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’’;
H. R. 2400—237
(3) in paragraph (3) by striking ‘‘in an urbanized area’’
and all that follows through ‘‘of the urbanized area’’ and insert-
ing ‘‘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 para-
graph.’’.
(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
NON-
ATTAINMENT.—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 man-
ner described in subsection (c)(5).
‘‘(4) NEW METROPOLITAN PLANNING AREAS IN NONATTAIN-
MENT.—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);
H. R. 2400—238
‘‘(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 metro-
politan 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 func-
tions’’;
(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 effi-
ciently 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 plan-
ning 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)—
H. R. 2400—239
(A) by inserting after ‘‘employees,’’ the following:
‘‘freight shippers, providers of freight transportation serv-
ices,’’; and
(B) by inserting after ‘‘private providers of transpor-
tation,’’ the following: ‘‘representatives of users of public
transit,’’;
(4) in paragraph (5)(A) by inserting ‘‘published or other-
wise’’ 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 metro-
politan planning organization, in cooperation with the chief
executive officer of the State and any affected mass transpor-
tation 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 improve-
ment 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 develop-
ment 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.—Not-
withstanding subsection (b)(2)(C), a State or metropolitan planning
organization shall not be required to select any project from the
H. R. 2400—240
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 transpor-
tation improvement program. All other projects funded under chap-
ter 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 para-
graph (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 sub-
section, the Secretary shall provide for public involvement appro-
priate 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 reason-
able 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
H. R. 2400—241
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:
‘‘§ 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 approv-
ing 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 shall certify, in a manner satisfactory to the Sec-
retary, 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
H. R. 2400—242
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 follow-
ing the fiscal year in which the funds are apportioned. Funds
that are not obligated at the end of such period shall be reappor-
tioned under the urbanized area formula program of section
5336.
‘‘(3) REPORT.—A recipient of funds apportioned under para-
graph (1) shall submit, as part of the recipient’s annual certifi-
cation 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:
‘‘§ 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, includ-
ing 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 facili-
ties 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 equiva-
lent or superior emissions reductions to existing clean fuel
or hybrid electric technologies.
H. R. 2400—246
‘‘(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 replace-
ment 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 subpara-
graphs (G) and (H), respectively; and
(2) by striking subparagraph (E) and inserting the follow-
ing:
‘‘(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 facili-
ties;’’.
(d) CONSIDERATION OF DECREASED COMMUTER RAIL TRANSPOR-
TATION.—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;
H. R. 2400—247
‘‘(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 ENGINEER-
ING.—In evaluating a project under paragraph (1)(A), the Sec-
retary 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 reduc-
tions in local infrastructure costs achieved through compact
land use development;
‘‘(C) identify and consider mass transportation support-
ive 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 popu-
lation 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 deter-
mines 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 avail-
ability 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 requir-
ing a reduction in existing mass transportation services
to operate the proposed project.
‘‘(B) CONSIDERATIONS.—In assessing the stability, reli-
ability, and availability of proposed sources of local financ-
ing under subparagraph (A), the Secretary shall consider—
‘‘(i) existing grant commitments;
‘‘(ii) the degree to which financing sources are dedi-
cated to the purposes proposed;
H. R. 2400—248
‘‘(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 Sec-
retary shall evaluate and rate the project as ‘highly rec-
ommended’, ‘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 Sec-
retary shall provide, in addition to the overall project rating,
individual ratings for each criteria established under the regula-
tions 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 guide-
way 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 Implementa-
tion Plan.
‘‘(C) PROJECTS FINANCED WITH HIGHWAY FUNDS.—This
subsection does not apply to a part of a project financed
H. R. 2400—249
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 agree-
ment before the date of enactment of the Federal Transit
Act of 1998.’’.
(f) LETTERS
OF INTENT
AND FULL FUNDING GRANT AGREE-
MENTS.—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 equiva-
lent to the total authorizations under section 5338(b) for new
fixed guideway systems and extensions to existing fixed guide-
way 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, rehabili-
tate, 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 para-
graph (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