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‘‘(1) ESTABLISHMENT.—The Secretary shall es-
tablish a Planning Capacity Building Program (re-
ferred to in this subsection as the ‘‘Program’’) to sup-
port and fund innovative practices and enhancements
in transportation planning.
‘‘(2) PURPOSE.—The purpose of the Program
shall be to promote activities that support and
strengthen the planning processes required under this
section and sections 5303 and 5304.
‘‘(3) ADMINISTRATION.—The Program shall be
administered by the Federal Transit Administration
in cooperation with the Federal Highway Adminis-
tration.
‘‘(4) USE OF FUNDS.—
‘‘(A) IN GENERAL.—Appropriations author-
ized under subsection (g)(1) to carry out this
subsection may be used—
‘‘(i) to provide incentive grants to
States, metropolitan planning organiza-
tions, and public transportation operators;
and
‘‘(ii) to conduct research, disseminate
information, and provide technical assist-
ance.
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‘‘(B) GRANTS, CONTRACTS, COOPERATIVE
AGREEMENTS.—In carrying out the activities de-
scribed in subparagraph (A), the Secretary
may—
‘‘(i) expend appropriated funds di-
rectly; or
‘‘(ii) award grants to, or enter into
contracts, cooperative agreements, and other
transactions with, a Federal agency, State
agency, local governmental authority, asso-
ciation, nonprofit or for-profit entity, or in-
stitution of higher education.
‘‘(f) GOVERNMENT’S SHARE
OF COSTS.—Amounts
made available to carry out subsections (c), (d), and (e)
may not exceed 80 percent of the costs of the activity unless
the Secretary of Transportation determines that it is in the
interest of the Government not to require State or local
matching funds.
‘‘(g) ALLOCATION OF FUNDS.—Of the amounts made
available under section 5338(b)(2)(B) for fiscal year 2006
and each fiscal year thereafter to carry out this section—
‘‘(1) $5,000,000 shall be allocated for the Plan-
ning Capacity Building Program established under
subsection (e);
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‘‘(2) $20,000,000 shall be allocated for grants
under subsection (a)(2) for alternatives analyses re-
quired by section 5309(e)(2)(A); and
‘‘(3) of the remaining amount—
‘‘(A) 82.72 percent shall be allocated for the
metropolitan planning program described in
subsection (d); and
‘‘(B) 17.28 percent shall be allocated to
carry out subsection (b).
‘‘(h) REALLOCATIONS.—Any amount allocated under
this section that has not been used 3 years after the end
of the fiscal year in which the amount was allocated shall
be reallocated among the States.’’.
(b) CONFORMING AMENDMENT.—The item relating to
section 5308 in the table of sections for chapter 53 is amend-
ed to read as follows:
‘‘5308. Planning programs.’’.
SEC. 6011. CAPITAL INVESTMENT PROGRAM.
(a) SECTION HEADING.—The section heading of sec-
tion 5309 is amended to read as follows:
‘‘§ 5309. Capital investment grants’’.
(b) 
GENERAL
AUTHORITY.—Section 
5309(a) 
is
amended—
(1) in paragraph (1)—
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(A) by striking ‘‘(1) The Secretary of
Transportation may make grants and loans’’
and inserting the following:
‘‘(1) GRANTS AUTHORIZED.—The Secretary may
award grants’’;
(B) in subparagraph (A), by striking ‘‘al-
ternatives analysis related to the development of
systems,’’;
(C) by striking subparagraphs (B), (C),
(D), and (G);
(D) by redesignating subparagraphs (E),
(F), and (H) as subparagraphs (B), (C), and
(D), respectively;
(E) in subparagraph (C), as redesignated,
by striking the semicolon at the end and insert-
ing ‘‘, including programs of bus and bus-related
projects for assistance to subrecipients which are
public agencies, private companies engaged in
public transportation, or private nonprofit orga-
nizations; and’’; and
(F) in subparagraph (D), as redesignated—
(i) by striking ‘‘to support fixed guide-
way systems’’; and
(ii) by striking ‘‘dedicated bus and
high occupancy vehicle’’;
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(2) by amending paragraph (2) to read as fol-
lows:
‘‘(2) GRANTEE REQUIREMENTS.—
‘‘(A) GRANTEE IN URBANIZED AREA.—The
Secretary shall require that any grants awarded
under this section to a recipient or subrecipient
located in an urbanized area shall be subject to
all terms, conditions, requirements, and provi-
sions that the Secretary determines to be nec-
essary or appropriate for the purposes of this
section, including requirements for the disposi-
tion of net increases in the value of real property
resulting from the project assisted under this sec-
tion.
‘‘(B) GRANTEE NOT IN URBANIZED AREA.—
The Secretary shall require that any grants
awarded under this section to a recipient or sub-
recipient not located in an urbanized area shall
be subject to the same terms, conditions, require-
ments, and provisions as a recipient or sub-
recipient of assistance under section 5311.
‘‘(C) SUBRECIPIENT.—The Secretary shall
require that any private, nonprofit organization
that is a subrecipient of a grant awarded under
this section shall be subject to the same terms,