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‘‘(i) tuition and other charges to the 
fellowship recipient; 
‘‘(ii) additional costs incurred by the 
training institution and billed to the grant 
recipient; and 
‘‘(iii) the regular salary of the fellow-
ship recipient for the period of the fellow-
ship to the extent the salary is actually 
paid or reimbursed by the grant recipi-
ent.’’. 
SEC. 3023. GENERAL PROVISIONS ON ASSISTANCE. 
(a) INTERESTS IN PROPERTY.—Section 5323(a)(1) is 
amended—
(1) in the matter preceding subparagraph (A)—
(A) by striking ‘‘private mass transpor-
tation company’’ each place it appears and in-
serting ‘‘private company engaged in public 
transportation’’; 
(B) by striking ‘‘mass transportation 
equipment or a mass transportation facility’’ 
and inserting ‘‘a public transportation facility 
or equipment’’; and 
(C) by striking ‘‘mass transportation com-
pany’’ and inserting ‘‘public transportation 
company’’; and
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(2) in subparagraph (B) by striking ‘‘private 
mass transportation companies’’ and inserting ‘‘pri-
vate companies engaged in public transportation’’. 
(b) 
NOTICE
AND
PUBLIC
HEARING.—Section 
5323(b) is amended—
(1) in paragraph (1)—
(A) by striking ‘‘(1) An application’’ and 
inserting the following: 
‘‘(1) APPLICATIONS.—An application’’; 
(B) in the matter preceding subparagraph 
(A) by striking ‘‘or loan’’; and 
(C) by moving subparagraphs (A) through 
(D) 2 ems to the right; 
(2) in paragraph (2) by striking ‘‘(2) Notice of’’ 
and inserting the following: 
‘‘(2) NOTICE.—Notice of’’; and 
(3) by adding at the end the following: 
‘‘(3) ENVIRONMENTAL RECORD.—An applicant 
shall include in the environmental record for a 
project under this chapter evidence that the appli-
cant has complied with the requirements of subpara-
graphs (A) through (D) of paragraph (1).’’. 
(c) CONDITION ON CHARTER BUS TRANSPORTATION 
SERVICE.—Section 5323(d) is amended—
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(1) by striking ‘‘(1) Financial assistance’’ and 
inserting the following: 
‘‘(1) AGREEMENTS.—Financial assistance’’; and 
(2) by striking paragraph (2) and inserting the 
following: 
‘‘(2) VIOLATIONS.—
‘‘(A) INVESTIGATIONS.—On receiving a 
complaint about a violation of the agreement 
required under paragraph (1), the Secretary 
shall investigate and decide whether a violation 
has occurred. 
‘‘(B) ENFORCEMENT OF AGREEMENTS.—If 
the Secretary decides that a violation has oc-
curred, the Secretary shall correct the violation 
under terms of the agreement. 
‘‘(C) ADDITIONAL REMEDIES.—In addition 
to any remedy specified in the agreement, the 
Secretary shall bar a recipient or an operator 
from receiving Federal transit assistance in an 
amount the Secretary considers appropriate if 
the Secretary finds a pattern of violations of 
the agreement.’’. 
(d) 
BOND
PROCEEDS
ELIGIBLE
FOR
LOCAL 
SHARE.—Section 5323(e) is amended to read as follows:
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‘‘(e) BOND
PROCEEDS
ELIGIBLE
FOR
LOCAL 
SHARE.—
‘‘(1) USE AS LOCAL MATCHING FUNDS.—Not-
withstanding any other provision of law, a recipient 
of assistance under section 5307 or 5309 may use 
the proceeds from the issuance of revenue bonds as 
part of the local matching funds for a capital 
project. 
‘‘(2) MAINTENANCE
OF
EFFORT.—The Sec-
retary shall approve of the use of the proceeds from 
the issuance of revenue bonds for the remainder of 
the net project cost only if the Secretary finds that 
the aggregate amount of financial support for public 
transportation in the urbanized area provided by the 
State and affected local governmental authorities 
during the next 3 fiscal years, as programmed in the 
State transportation improvement program under 
chapter 52 is not less than the aggregate amount 
provided by the State and affected local govern-
mental authorities in the urbanized area during the 
preceding 3 fiscal years. 
‘‘(3) DEBT SERVICE RESERVE.—The Secretary 
may reimburse an eligible recipient for deposits of 
bond proceeds in a debt service reserve that recipient 
established pursuant to section 5302(a)(1)(K) from
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amounts made available to the recipient under sec-
tion 5307 or 5309, or both; except that such reim-
bursement in a fiscal year may not exceed 10 per-
cent of the amounts made available to the recipient 
under section 5307 in such fiscal year.’’. 
(e) SCHOOLBUS TRANSPORTATION.—Section 5323(f) 
is amended—
(1) by striking ‘‘(1) Financial assistance’’ and 
inserting the following: 
‘‘(1) AGREEMENTS.—Financial assistance’’; 
(2) in paragraph (1) by moving subparagraphs 
(A), (B), and (C) 2 ems to the right; and 
(3) by striking paragraph (2) and inserting the 
following: 
‘‘(2) VIOLATIONS.—If the Secretary finds that 
an applicant, governmental authority, or publicly 
owned operator has violated the agreement required 
under paragraph (1), the Secretary shall bar a re-
cipient or an operator from receiving Federal transit 
assistance in an amount the Secretary considers ap-
propriate.’’. 
(f) BUYING BUSES UNDER OTHER LAWS.—Section 
5323(g) is amended by striking ‘‘103(e)(4)’’ each place 
it appears and inserting ‘‘133’’. 
(g) BUY AMERICA.—
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(1) 
PUBLIC
INTEREST
WAIVER.—Section 
5323(j) is amended—
(A) 
by 
redesignating 
paragraphs 
(3) 
through (7) as paragraphs (4) through (8), re-
spectively; and 
(B) by inserting after paragraph (2) the 
following: 
‘‘(3) WRITTEN JUSTIFICATION FOR PUBLIC IN-
TEREST WAIVER.—When issuing a waiver based on 
a public interest determination under paragraph 
(2)(A), the Secretary shall issue a detailed written 
justification as to why the waiver is in the public in-
terest. The Secretary shall publish such justification 
in the Federal Register and provide the public with 
a reasonable period of time for notice and com-
ment.’’. 
(2) INELIGIBILITY
FOR
CONTRACTS.—Section 
5323(j)(6) (as so redesignated) is amended by strik-
ing ‘‘Intermodal Surface Transportation Efficiency 
Act of 1991 (Public Law 102–240, 105 Stat. 
1914)’’ and inserting ‘‘Federal Public Transpor-
tation Act of 2004’’. 
(3) ADMINISTRATIVE REVIEW.—Section 5323(j) 
is amended by adding at the end the following:
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‘‘(9) ADMINISTRATIVE
REVIEW.—A party ad-
versely affected by an agency action under this sub-
section shall have the right to seek review under sec-
tion 702 of title 5.’’. 
(4) REPEAL
OF
GENERAL
WAIVER.—Sub-
sections (b) and (c) of Appendix A of section 661.7 
of title 49, Code of Federal Regulations, shall cease 
to be in effect beginning on the date of enactment 
of this Act. 
(5) RULEMAKING.—Not later than 180 days 
after the date of enactment of this Act, the Sec-
retary shall issue a final rule on implementation of 
the requirements of section 5323(j) of title 49, 
United States Code (in this paragraph referred to as 
the ‘‘Buy America requirements’’). The purposes of 
the regulations shall be as follows: 
(A) MICROPROCESSOR WAIVER.—To clarify 
that any waiver from the Buy America require-
ments issued under section 5323(j)(2) of such 
title for a microprocessor, computer, or micro-
computer applies only to a device used solely for 
the purpose of processing or storing data and 
does not extend to a product containing a 
microprocessor, computer, or microcomputer.
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(B) DEFINITIONS.—To define the terms 
‘‘end product’’, ‘‘negotiated procurement’’, and 
‘‘contractor’’ for purposes of part 661 of title 
49, Code of Federal Regulations. In defining 
the terms, the Secretary shall develop a list of 
representative items that are subject to the Buy 
America requirements, and shall address the 
procurement of systems under the definition to 
ensure that major system procurements are not 
used to circumvent the Buy America require-
ments. 
(C) POST-AWARD WAIVERS.—To permit a 
grantee to request a non-availability waiver 
from the Buy America requirements under sec-
tion 661.7c of title 49, Code of Federal Regula-
tions, after contract award in any case in which 
the contractor has made a certification of com-
pliance with the requirements in good faith. 
(D) CERTIFICATION UNDER NEGOTIATED 
PROCUREMENT PROCESS.—In any case in which 
a negotiated procurement process is used, com-
pliance with the Buy America requirements 
shall be determined on the basis of the certifi-
cation submitted with the final offer.
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(h) GRANT REQUIREMENTS.—Section 5323(o) is 
amended by striking ‘‘the Transportation Infrastructure 
Finance and Innovation Act of 1998’’ and inserting 
‘‘chapter 6 (other than section 609) of title 23’’. 
(i) GOVERNMENT SHARE OF COSTS FOR CERTAIN 
PROJECTS.—Section 5323(i) is amended—
(1) by striking ‘‘(including clean fuel or alter-
native fuel vehicle-related equipment)’’; and 
(1) by inserting ‘‘or facilities’’ after ‘‘equip-
ment’’ each place it occurs. 
(j) ALTERNATIVE FUELING FACILITIES.—Section 
5323 is further amended by adding at the end the fol-
lowing: 
‘‘(p) ALTERNATIVE FUELING FACILITIES.—A recipi-
ent of assistance under this chapter may allow the inci-
dental use of Federally funded alternative fueling facilities 
and equipment by nontransit public entities and private 
entities if—
‘‘(1) the incidental use does not interfere with 
the recipient’s public transportation operations; 
‘‘(2) all costs related to the incidental use are 
fully recaptured by the recipient from the nontransit 
public entity or private entity;
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‘‘(3) the recipient uses revenues received from 
the incidental use in excess of costs for eligible 
projects under this chapter; and 
‘‘(4) private entities pay all applicable excise 
taxes on fuel.’’. 
SEC. 3024. SPECIAL PROVISIONS FOR CAPITAL PROJECTS. 
(a) IN GENERAL.—Section 5324 is amended to read 
as follows: 
‘‘§ 5324. Special provisions for capital projects 
‘‘(a) RELOCATION PROGRAM REQUIREMENTS.—Fi-
nancial assistance may be provided under section 5309 
only if the Secretary decides that—
‘‘(1) an adequate relocation program is being 
carried out for families displaced by a project; and 
‘‘(2) an equal number of decent, safe, and sani-
tary dwellings are being, or will be, provided to those 
families in the same area or in another area gen-
erally not less desirable for public utilities and public 
and commercial facilities, at rents or prices within 
the financial means of those families, and with rea-
sonable access to their places of employment. 
‘‘(b) CONSIDERATION OF ECONOMIC, SOCIAL, AND 
ENVIRONMENTAL INTERESTS.—
‘‘(1) COOPERATION
AND
CONSULTATION.—In 
carrying out the policy of section 5301(e), the Sec-
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retary shall cooperate and consult with the Secre-
taries of the Interior, Health and Human Services, 
and Housing and Urban Development and the Ad-
ministrator of the Environmental Protection Agency 
on each project that may have a substantial impact 
on the environment. 
‘‘(2) PUBLIC
PARTICIPATION
IN
ENVIRON-
MENTAL
REVIEWS.—In performing environmental 
reviews, the Secretary shall review each transcript of 
a hearing submitted under section 5323(b) to estab-
lish that an adequate opportunity to present views 
was given to all parties having a significant eco-
nomic, social, or environmental interest in the 
project, and that the project application includes a 
record of—
‘‘(A) the environmental impact of the pro-
posal; 
‘‘(B) adverse environmental effects that 
cannot be avoided; 
‘‘(C) alternatives to the proposal; and 
‘‘(D) irreversible and irretrievable impacts 
on the environment. 
‘‘(3) APPROVAL OF APPLICATIONS FOR ASSIST-
ANCE.—