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‘‘(M) contract administration;
‘‘(N) inspection;
‘‘(O) innovative finance;
‘‘(P) workplace safety; and
‘‘(Q) public transportation security.’’; and
(2) in subsection (d), by striking ‘‘mass’’ each
place it appears.
SEC. 6018. BUS TESTING FACILITY.
Section 5318 is amended—
(1) in subsection (a)—
(A) by striking ‘‘ESTABLISHMENT.—The
Secretary of Transportation shall establish one
facility’’ and inserting ‘‘IN GENERAL.—The Sec-
retary shall maintain 1 facility’’; and
(B) by striking ‘‘established by renovating’’
and inserting ‘‘maintained at’’; and
(2) in subsection (d), by striking ‘‘section
5309(m)(1)(C) of this title’’ and inserting ‘‘para-
graphs (1)(C) and (2)(B) of section 5309(i)’’.
SEC. 6019. BICYCLE FACILITIES.
Section 5319 is amended by striking ‘‘5307(k)’’ and
inserting ‘‘5307(d)(1)(K)’’.
SEC. 6020. SUSPENDED LIGHT RAIL TECHNOLOGY PILOT
PROJECT.
Section 5320 is repealed.
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SEC. 6021. CRIME PREVENTION AND SECURITY.
Section 5321 is repealed.
SEC. 6022. GENERAL PROVISIONS ON ASSISTANCE.
Section 5323 is amended—
(1) in subsection (a)—
(A) by amending paragraph (1) to read as
follows:
‘‘(1) IN
GENERAL.—Financial assistance pro-
vided under this chapter to a State or a local govern-
mental authority may be used to acquire an interest
in, or to buy property of, a private company engaged
in public transportation, for a capital project for
property acquired from a private company engaged
in public transportation after July 9, 1964, or to op-
erate a public transportation facility or equipment in
competition with, or in addition to, transportation
service provided by an existing public transportation
company, only if—
‘‘(A) the Secretary determines that such fi-
nancial assistance is essential to a program of
projects required under sections 5303, 5304, and
5306;
‘‘(B) the Secretary determines that the pro-
gram provides for the participation of private
companies engaged in public transportation to
the maximum extent feasible; and
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‘‘(C) just compensation under State or local
law will be paid to the company for its franchise
or property.’’; and
(B) in paragraph (2), by striking ‘‘(2)’’ and
inserting the following:
‘‘(2) LIMITATION.—’’;
(2) by amending subsection (b) to read as fol-
lows:
‘‘(b) NOTICE AND PUBLIC HEARING.—
‘‘(1) IN GENERAL.—An application for a grant
under this chapter for a capital project that will sub-
stantially affect a community, or the public transpor-
tation service of a community, shall include, in the
environmental record for the project, evidence that the
applicant has—
‘‘(A) provided an adequate opportunity for
public review and comment on the project;
‘‘(B) held a public hearing on the project if
the project affects significant economic, social, or
environmental interests;
‘‘(C) considered the economic, social, and
environmental effects of the project; and
‘‘(D) found that the project is consistent
with official plans for developing the urban area.
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‘‘(2) CONTENTS OF NOTICE.—Notice of a hearing
under this subsection—
‘‘(A) shall include a concise description of
the proposed project; and
‘‘(B) shall be published in a newspaper of
general circulation in the geographic area the
project will serve.’’;
(3) by amending subsection (e) to read as fol-
lows:
‘‘(e) NEW TECHNOLOGY.—A grant for financial assist-
ance under this chapter for new technology, including inno-
vative or improved products, techniques, or methods, shall
be subject to the requirements of section 5309 to the extent
the Secretary determines to be appropriate.’’;
(4) in subsection (f)—
(A) by striking ‘‘(1)’’ and inserting the fol-
lowing:
‘‘(1) IN GENERAL.—’’;
(B) by striking paragraph (2);
(C) by striking ‘‘This subsection’’ and in-
serting the following:
‘‘(2) EXCEPTIONS.—This subsection; and
(D) by adding at the end the following:
‘‘(3) PENALTY.—If the Secretary determines that
an applicant, governmental authority, or publicly
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owned operator has violated the agreement required
under paragraph (1), the Secretary shall bar the ap-
plicant, authority, or operator from receiving Federal
transit assistance in an amount the Secretary deter-
mines to be appropriate.’’;
(5) in subsection (g), by striking ‘‘103(e)(4) and
142 (a) or (c)’’ each place it appears and inserting
‘‘133 and 142’’;
(6) by amending subsection (h) to read as fol-
lows:
‘‘(h) TRANSFER OF LANDS OR INTERESTS IN LANDS
OWNED BY THE UNITED STATES.—
‘‘(1) REQUEST BY SECRETARY.—If the Secretary
determines that any part of the lands or interests in
lands owned by the United States and made available
as a result of a military base closure is necessary for
transit purposes eligible under this chapter, including
corridor preservation, the Secretary shall submit a re-
quest to the head of the Federal agency supervising
the administration of such lands or interests in lands.
Such request shall include a map showing the portion
of such lands or interests in lands, which is desired
to be transferred for public transportation purposes.
‘‘(2) TRANSFER
OF
LAND.—If 4 months after
submitting a request under paragraph (1), the Sec-
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retary does not receive a response from the Federal
agency described in paragraph (1) that certifies that
the proposed appropriation of land is contrary to the
public interest or inconsistent with the purposes for
which such land has been reserved, or if the head of
such agency agrees to the utilization or transfer under
conditions necessary for the adequate protection and
utilization of the reserve, such land or interests in
land may be utilized or transferred to a State, local
governmental authority, or public transportation op-
erator for such purposes and subject to the conditions
specified by such agency.
‘‘(3) REVERSION.—If at any time the lands or
interests in land utilized or transferred under para-
graph (2) are no longer needed for public transpor-
tation purposes, the State, local governmental author-
ity, or public transportation operator that received
the land shall notify to the Secretary, and such lands
shall immediately revert to the control of the head of
the Federal agency from which the land was origi-
nally transferred.’’;
(7) in subsection (j)(5), by striking ‘‘Intermodal
Surface Transportation Efficiency Act of 1991 (Pub-
lic Law 102–240, 105 Stat. 1914)’’ and inserting
‘‘Federal Public Transportation Act of 2005’’;
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(8) by amending subsection (l) to read as follows:
‘‘(l) RELATIONSHIP TO OTHER LAWS.—Section 1001
of title 18 applies to a certificate, submission, or statement
provided under this chapter. The Secretary may terminate
financial assistance under this chapter and seek reimburse-
ment directly, or by offsetting amounts, available under this
chapter, if the Secretary determines that a recipient of such
financial assistance has made a false or fraudulent state-
ment or related act in connection with a Federal transit
program.’’;
(9) in subsection (m), by adding at the end the
following: ‘‘Requirements to perform preaward and
postdelivery reviews of rolling stock purchases to en-
sure compliance with subsection (j) shall not apply to
private nonprofit organizations or to grantees serving
urbanized areas with a population of fewer than
1,000,000.’’;
(10) in subsection (o), by striking ‘‘the Transpor-
tation Infrastructure Finance and Innovation Act of
1998’’ and inserting ‘‘subchapter II of chapter 1 of
title 23’’; and
(11) by adding at the end the following:
‘‘(p) 
BOND
PROCEEDS
ELIGIBLE
FOR
LOCAL
SHARE.—
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‘‘(1) IN GENERAL.—Notwithstanding any other
provision of law, a recipient of assistance under sec-
tion 5307 or 5309, may use the proceeds from the
issuance of revenue bonds as part of the local match-
ing funds for a capital project.
‘‘(2) REIMBURSEMENT BY SECRETARY.—The Sec-
retary may reimburse an eligible recipient for depos-
its of bond proceeds in a debt service reserve that the
recipient 
established 
pursuant 
to 
section
5302(a)(1)(K) from amounts made available to the re-
cipient under section 5307 or 5309.’’;
‘‘(q) PROHIBITED USE OF FUNDS.—Grant funds re-
ceived under this chapter may not be used to pay ordinary
governmental or nonproject operating expenses.’’.
SEC. 6023. SPECIAL PROVISIONS FOR CAPITAL PROJECTS.
(a) IN GENERAL.—Section 5324 is amended to read
as follows:
‘‘§ 5324. Special provisions for capital projects
‘‘(a) REAL PROPERTY AND RELOCATION SERVICES.—
Whenever real property is acquired or furnished as a re-
quired contribution incident to a project, the Secretary shall
not approve the application for financial assistance unless
the applicant has made all payments and provided all as-
sistance and assurances that are required of a State agency
under sections 210 and 305 of the Uniform Relocation As-
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sistance and Real Property Acquisition Policies Act of 1970
(42 U.S.C. 4630 and 4655). The Secretary must be advised
of specific references to any State law that are believed to
be an exception to section 301 or 302 of such Act (42 U.S.C.
4651 and 4652).
‘‘(b) ADVANCE REAL PROPERTY ACQUISITIONS.—
(1) IN GENERAL.—The Secretary may partici-
pate in the acquisition of real property for any
project that may use the property if the Secretary de-
termines that external market forces are jeopardizing
the potential use of the property for the project and
if—
‘‘(A) there are offers on the open real estate
market to convey that property for a use that is
incompatible with the project under study;
‘‘(B) there is an imminent threat of devel-
opment or redevelopment of the property for a
use that is incompatible with the project under
study;
‘‘(C) recent appraisals reflect a rapid in-
crease in the fair market value of the property;
‘‘(D) the property, because it is located near
an existing transportation facility, is likely to be
developed and to be needed for a future transpor-
tation improvement; or
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‘‘(E) the property owner can demonstrate
that, for health, safety, or financial reasons, re-
taining ownership of the property poses an
undue hardship on the owner in comparison to
other affected property owners and requests the
acquisition to alleviate that hardship.
‘‘(2) ENVIRONMENTAL
REVIEWS.—Property ac-
quired in accordance with this subsection may not be
developed in anticipation of the project until all re-
quired environmental reviews for the project have
been completed.
‘‘(3) LIMITATION.—The Secretary shall limit the
size and number of properties acquired under this
subsection as necessary to avoid any prejudice to the
Secretary’s objective evaluation of project alternatives.
‘‘(4) EXEMPTION.—An acquisition under this
section shall be considered an exempt project under
section 176 of the Clean Air Act (42 U.S.C. 7506).
‘‘(c) RAILROAD CORRIDOR PRESERVATION.—
‘‘(1) IN GENERAL.—The Secretary may assist an
applicant to acquire railroad right-of-way before the
completion of the environmental reviews for any
project that may use the right-of-way if the acquisi-
tion is otherwise permitted under Federal law. The
Secretary may establish restrictions on such an acqui-
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sition as the Secretary determines to be necessary and
appropriate.
‘‘(2) 
ENVIRONMENTAL
REVIEWS.—Railroad
right-of-way acquired under this subsection may not
be developed in anticipation of the project until all
required environmental reviews for the project have
been completed.
‘‘(d) CONSIDERATION OF ECONOMIC, SOCIAL, AND EN-
VIRONMENTAL INTERESTS.—
‘‘(1) IN GENERAL.—The Secretary may not ap-
prove an application for financial assistance for a
capital project under this chapter unless the Secretary
determines that the project has been developed in ac-
cordance with the National Environmental Policy Act
of 1969 (42 U.S.C. 4321 et seq.). The Secretary’s find-
ings under this paragraph shall be made a matter of
public record.
‘‘(2) COOPERATION AND CONSULTATION.—In car-
rying out section 5301(e), the Secretary shall cooper-
ate and consult with the Secretary of the Interior and
the Administrator of the Environmental Protection
Agency on each project that may have a substantial
impact on the environment.’’.
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(b) CONFORMING AMENDMENT.—The item relating to
section 5324 in the table of sections for chapter 53 is amend-
ed to read as follows:
‘‘5324. Special provisions for capital projects.’’.
SEC. 6024. CONTRACT REQUIREMENTS.
(a) IN GENERAL.—Section 5325 is amended to read
as follows:
‘‘§ 5325. Contract requirements
‘‘(a) COMPETITION.—Recipients of assistance under
this chapter shall conduct all procurement transactions in
a manner that provides full and open competition as deter-
mined by the Secretary.
‘‘(b) ARCHITECTURAL, ENGINEERING, AND DESIGN
CONTRACTS.—
‘‘(1) IN GENERAL.—A contract or requirement
for program management, architectural engineering,
construction management, a feasibility study, and
preliminary engineering, design, architectural, engi-
neering, surveying, mapping, or related services for a
project for which Federal assistance is provided under
this chapter shall be awarded in the same manner as
a contract for architectural and engineering services
is negotiated under chapter 11 of title 40, or an
equivalent qualifications-based requirement of a
State. This subsection does not apply to the extent a
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State has adopted or adopts by law a formal proce-
dure for procuring those services.
‘‘(2) 
ADDITIONAL
REQUIREMENTS.—When
awarding a contract described in paragraph (1), re-
cipients of assistance under this chapter shall comply
with the following requirements:
‘‘(A) Any contract or subcontract awarded
under this chapter shall be performed and au-
dited in compliance with cost principles con-
tained in part 31 of title 48, Code of Federal
Regulations (commonly known as the Federal
Acquisition Regulation).
‘‘(B) A recipient of funds under a contract
or subcontract awarded under this chapter shall
accept indirect cost rates established in accord-
ance with the Federal Acquisition Regulation for
1-year applicable accounting periods by a cog-
nizant Federal or State government agency, if
such rates are not currently under dispute.
‘‘(C) After a firm’s indirect cost rates are
accepted under subparagraph (B), the recipient
of the funds shall apply such rates for the pur-
poses of contract estimation, negotiation, admin-
istration, reporting, and contract payment, and
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shall not be limited by administrative or de facto
ceilings.
‘‘(D) A recipient requesting or using the
cost and rate data described in subparagraph
(C) shall notify any affected firm before such re-
quest or use. Such data shall be confidential and
shall not be accessible or provided by the group
of agencies sharing cost data under this subpara-
graph, except by written permission of the au-
dited firm. If prohibited by law, such cost and
rate data shall not be disclosed under any cir-
cumstances.
‘‘(c) EFFICIENT PROCUREMENT.—A recipient may
award a procurement contract under this chapter to other
than the lowest bidder if the award furthers an objective
consistent with the purposes of this chapter, including im-
proved long-term operating efficiency and lower long-term
costs.
‘‘(d) DESIGN-BUILD PROJECTS.—
‘‘(1) DEFINED
TERM.—As used in this sub-
section, the term ‘design-build project’—
‘‘(A) means a project under which a recipi-
ent enters into a contract with a seller, firm, or
consortium of firms to design and build an oper-
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able segment of a public transportation system
that meets specific performance criteria; and
‘‘(B) may include an option to finance, or
operate for a period of time, the system or seg-
ment or any combination of designing, building,
operating, or maintaining such system or seg-
ment.
‘‘(2) 
FINANCIAL
ASSISTANCE
FOR
CAPITAL
COSTS.—Federal financial assistance under this chap-
ter may be provided for the capital costs of a design-
build project after the recipient complies with Govern-
ment requirements.
‘‘(e) ROLLING STOCK.—
‘‘(1) ACQUISITION.—A recipient of financial as-
sistance under this chapter may enter into a contract
to expend that assistance to acquire rolling stock—
‘‘(A) with a party selected through a com-
petitive procurement process; or
‘‘(B) based on—
‘‘(i) initial capital costs; or
‘‘(ii) performance, standardization, life
cycle costs, and other factors.
‘‘(2) MULTIYEAR CONTRACTS.—A recipient pro-
curing rolling stock with Federal financial assistance
under this chapter may make a multiyear contract,
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including options, to buy not more than 5 years of re-
quirements for rolling stock and replacement parts.
The Secretary shall allow a recipient to act on a co-
operative basis to procure rolling stock under this
paragraph and in accordance with other Federal pro-
curement requirements.
‘‘(f) EXAMINATION OF RECORDS.—Upon request, the
Secretary and the Comptroller General, or any of their rep-
resentatives, shall have access to and the right to examine
and inspect all records, documents, and papers, including
contracts, related to a project for which a grant is made
under this chapter.
‘‘(g) GRANT PROHIBITION.—A grant awarded under
this chapter may not be used to support a procurement that
uses an exclusionary or discriminatory specification.
‘‘(h) BUS DEALER REQUIREMENTS.—No State law re-
quiring buses to be purchased through in-State dealers shall
apply to vehicles purchased with a grant under this chap-
ter.
‘‘(i) AWARDS TO RESPONSIBLE CONTRACTORS.—
‘‘(1) IN GENERAL.—Federal financial assistance
under this chapter may be provided for contracts only
if a recipient awards such contracts to responsible
contractors possessing the ability to successfully per-
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form under the terms and conditions of a proposed
procurement.
‘‘(2) CRITERIA.—Before making an award to a
contractor under paragraph (1), a recipient shall
consider—
‘‘(A) the integrity of the contractor;
‘‘(B) the contractor’s compliance with pub-
lic policy;
‘‘(C) the contractor’s past performance, in-
cluding the performance reported in the Con-
tractor Performance Assessment Reports required
under section 5309(m)(4); and
‘‘(D) the contractor’s financial and tech-
nical resources.’’.
(b) CONFORMING
AMENDMENTS.—Chapter 53 is
amended by striking section 5326.
SEC. 6025. PROJECT MANAGEMENT OVERSIGHT AND RE-
VIEW.
(a) PROJECT MANAGEMENT PLAN REQUIREMENTS.—
Section 5327(a) is amended—
(1) in paragraph (11), by striking ‘‘and’’ at the
end;
(2) in paragraph (12), by striking the period at
the end and inserting ‘‘; and’’; and
(3) by adding at the end the following:
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‘‘(13) safety and security management.’’.
(b) LIMITATIONS ON USE OF AVAILABLE AMOUNTS.—
Section 5327(c) is amended—
(1) by amending paragraph (1) to read as fol-
lows:
‘‘(1) IN GENERAL.—The Secretary may not use
more than 1 percent of amounts made available for
a fiscal year to carry out any of sections 5307
through 5311, 5316, or 5317, or a project under the
National Capital Transportation Act of 1969 (Public
Law 91–143) to make a contract to oversee the con-
struction of major projects under any of sections 5307
through 5311, 5316, or 5317 or under that Act.’’; and
(2) in paragraph (2)—
(A) by striking ‘‘(2)’’ and inserting the fol-
lowing:
‘‘(2) OTHER ALLOWABLE USES.—’’; and
(B) by inserting ‘‘and security’’ after ‘‘safe-
ty’’.
SEC. 6026. PROJECT REVIEW.
Section 5328 is amended—
(1) in subsection (a)—
(A) in paragraph (1) by striking ‘‘(1) When
the Secretary of Transportation allows a new
fixed guideway project to advance into the alter-
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natives analysis stage of project review, the Sec-
retary shall cooperate with the applicant’’ and
inserting the following:
‘‘(1) ALTERNATIVES
ANALYSIS.—The Secretary
shall cooperate with an applicant undertaking an al-
ternatives analysis under subsections (e) and (f) of
section 5309’’;
(B) in paragraph (2)—
(i) by striking ‘‘(2)’’ and inserting the
following:
‘‘(2) ADVANCEMENT TO PRELIMINARY ENGINEER-
ING STAGE.—’’; and
(ii) by striking ‘‘is consistent with’’
and inserting ‘‘meets the requirements of’’;
(C) in paragraph (3)—
(i) by striking ‘‘(3)’’ and inserting the
following:
‘‘(3) RECORD OF DECISION.—’’;
(ii) by striking ‘‘of construction’’; and
(iii) by adding before the period at the
end the following: ‘‘if the Secretary deter-
mines that the project meets the require-
ments of subsection (e) or (f) of section
5309’’; and
(D) by striking paragraph (4); and
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(2) by striking subsection (c).
SEC. 6027. INVESTIGATIONS OF SAFETY AND SECURITY
RISK.
(a) IN GENERAL.—Section 5329 is amended to read
as follows:
‘‘§ 5329. Investigation of safety hazards and security
risks
‘‘(a) IN GENERAL.—The Secretary may conduct inves-
tigations into safety hazards and security risks associated
with a condition in equipment, a facility, or an operation
financed under this chapter to establish the nature and ex-
tent of the condition and how to eliminate, mitigate, or cor-
rect it.
‘‘(b) SUBMISSION OF CORRECTIVE PLAN.—If the Sec-
retary establishes that a safety hazard or security risk war-
rants further protective measures, the Secretary shall re-
quire the local governmental authority receiving amounts
under this chapter to submit a plan for eliminating, miti-
gating, or correcting it.
‘‘(c) WITHHOLDING OF FUNDS.—Financial assistance
under this chapter, in an amount to be determined by the
Secretary, may be withheld until a plan is approved and
carried out.
‘‘(d) PUBLIC TRANSPORTATION SECURITY.—
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‘‘(1) IN GENERAL.—Not later than 90 days after
the date of enactment of the Federal Public Transpor-
tation Act of 2005, the Secretary shall enter into a
memorandum of understanding with the Secretary of
Homeland Security to define and clarify the respec-
tive roles and responsibilities of the Department of
Transportation and the Department of Homeland Se-
curity relating to public transportation security.
‘‘(2) CONTENTS.—The memorandum of under-
standing described in paragraph (1) shall—
‘‘(A) establish national security standards
for public transportation agencies;
‘‘(B) establish funding priorities for grants
from the Department of Homeland Security to
public transportation agencies;
‘‘(C) create a method of coordination with
public transportation agencies on security mat-
ters; and
‘‘(D) address any other issues determined to
be appropriate by the Secretary and the Sec-
retary of Homeland Security.’’.
(b) CONFORMING AMENDMENT.—The item relating to
section 5329 in the table of sections for chapter 53 is amend-
ed to read as follows:
‘‘5329. Investigation of safety hazards and security risks.’’.
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SEC. 6028. STATE SAFETY OVERSIGHT.
(a) IN GENERAL.—Section 5330 is amended—
(1) by amending the heading to read as follows:
‘‘§ 5330. Withholding amounts for noncompliance with
State safety oversight requirements’’;
(2) by amending subsection (a) to read as fol-
lows:
‘‘(a) APPLICATION.—This section shall only apply to—
‘‘(1) States that have rail fixed guideway public
transportation systems that are not subject to regula-
tion by the Federal Railroad Administration; and
‘‘(2) States that are designing rail fixed guide-
way public transportation systems that will not be
subjected to regulation by the Federal Railroad Ad-
ministration.’’;
(3) in subsection (d), by striking ‘‘affected
States’’ and inserting the following: ‘‘affected States—
‘‘(1) shall ensure uniform safety standards and
enforcement; or
‘‘(2)’’; and
(4) in subsection (f), by striking ‘‘Not later than
December 18, 1992, the’’ and inserting ‘‘The’’.
(b) CONFORMING AMENDMENT.—The item relating to
section 5330 in the table of sections for chapter 53 is amend-
ed to read as follows:
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‘‘5330. Withholding amounts for noncompliance with State safety oversight re-
quirements.’’.
SEC. 6029. TERRORIST ATTACKS AND OTHER ACTS OF VIO-
LENCE AGAINST PUBLIC TRANSPORTATION
SYSTEMS.
(a) IN GENERAL.—Section 1993 of title 18, United
States Code, is amended—
(1) by striking ‘‘mass’’ each place it appears and
inserting ‘‘public’’;
(2) in subsection (a)(5), by inserting ‘‘control-
ling,’’ after ‘‘operating’’; and
(3) in subsection (c)(5), by striking ‘‘5302(a)(7)
of title 49, United States Code,’’ and inserting
‘‘5302(a) of title 49,’’.
(b) CONFORMING AMENDMENT.—The table of contents
for chapter 97 of title 18, United States Code is amended
by amending the item related to section 1993 to read as
follows:
‘‘1993. Terrorist attacks and other acts of violence against public transportation
systems.’’.
SEC. 6030. CONTROLLED SUBSTANCES AND ALCOHOL MIS-
USE TESTING.
Section 5331 is amended—
(1) in subsection (a)(3), by inserting before the
period at the end the following: ‘‘or sections 2303a,
7101(i), or 7302(e) of title 46. The Secretary may
also decide that a form of public transportation is
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covered adequately, for employee alcohol and con-
trolled substances testing purposes, under the alcohol
and controlled substance statutes or regulations of an
agency within the Department of Transportation or
other Federal agency’’; and
(2) in subsection (f), by striking paragraph (3).
SEC. 6031. EMPLOYEE PROTECTIVE ARRANGEMENTS.
Section 5333(b) is amended—
(1) in paragraph (3), by striking the period at
the end and inserting ‘‘: Provided, That—
‘‘(A) the protective period shall not exceed 4
years; and
‘‘(B) the separation allowance shall not exceed
12 months.’’; and
(2) by adding at the end the following:
‘‘(4) An arrangement under this subsection shall not
guarantee continuation of employment as a result of a
change in private contractors through competitive bidding
unless such continuation is otherwise required under sub-
paragraph (A), (B), or (D) of paragraph (2).
‘‘(5) Fair and equitable arrangements to protect the
interests of employees utilized by the Secretary of Labor for
assistance to purchase like-kind equipment or facilities, and
amendments to existing assistance agreements, shall be cer-
tified without referral.
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‘‘(6) Nothing in this subsection shall affect the level
of protection provided to freight railroad employees.’’.
SEC. 6032. ADMINISTRATIVE PROCEDURES.
Section 5334 is amended—
(1) in subsection (a)—
(A) in paragraph (1), by striking ‘‘5309–
5311 of this title’’ and all that follows and in-
serting ‘‘5309 through 5311;’’;
(B) in paragraph (9), by striking ‘‘and’’ at
the end;
(C) in paragraph (10), by striking the pe-
riod at the end and inserting ‘‘; and’’; and
(D) by inserting at the end the following:
‘‘(11) issue regulations as necessary to carry out
the purposes of this chapter.’’;
(2) by redesignating subsections (b), (c), (d), (e),
(f), (g), (h), (i), and (j) as subsections (c), (d), (e), (f),
(g), (h), (i), (j), and (k), respectively;
(3) by adding after subsection (a) the following:
‘‘(b) PROHIBITIONS
AGAINST
REGULATING
OPER-
ATIONS AND CHARGES.—
‘‘(1) IN GENERAL.—Except as directed by the
President for purposes of national defense or in the
event of a national or regional emergency, the Sec-
retary may not regulate—
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‘‘(A) the operation, routes, or schedules of a
public transportation system for which a grant
is made under this chapter; or
‘‘(B) the rates, fares, tolls, rentals, or other
charges prescribed by any public or private
transportation provider.
‘‘(2) COMPLIANCE WITH AGREEMENT.—Nothing
in this subsection shall prevent the Secretary from re-
quiring a recipient of funds under this chapter to
comply with the terms and conditions of its Federal
assistance agreement.’’;
(4) in subsection (j)(1), as redesignated, by strik-
ing ‘‘carry out section 5312(a) and (b)(1) of this
title’’ and inserting ‘‘advise and assist the Secretary
in carrying out section 5312(a)’’; and
(5) by adding at the end the following:
‘‘(l) NOTIFICATION OF PENDING DISCRETIONARY
GRANTS.—Not less than 3 full business days before
announcement of award by the Secretary of any dis-
cretionary grant, letter of intent, or full funding
grant agreement totaling $1,000,000 or more, the Sec-
retary shall notify the Committees on Banking, Hous-
ing, and Urban Affairs and Appropriations of the
Senate and Committees on Transportation and Infra-
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structure and Appropriation of the House of Rep-
resentatives.’’.
SEC. 6033. REPORTS AND AUDITS.
Section 5335 is amended—
(1) by striking subsection (b); and
(2) in subsection (a)—
(A) in paragraph (1), by striking ‘‘(1)’’;
and
(B) in paragraph (2), by striking ‘‘(2) The
Secretary may make a grant under section 5307
of this title’’ and inserting the following:
‘‘(b) REPORTING AND UNIFORM SYSTEMS.—The Sec-
retary may award a grant under section 5307 or 5311’’.
SEC. 6034. APPORTIONMENTS OF APPROPRIATIONS FOR
FORMULA GRANTS.
Section 5336 is amended—
(1) by striking subsections (d), (h), and (k);
(2) by redesignating subsections (a) through (c)
as subsections (b) through (d), respectively;
(3) by redesignating subsection (i) and (j) as
subsection (h) and (i) respectively;
(4) by adding before subsection (b), as redesig-
nated, the following:
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‘‘(a) APPORTIONMENTS.—Of the amounts made avail-
able for each fiscal year under subsections (a)(1)(C)(vi) and
(b)(2)(L) of section 5338—
‘‘(1) there shall be apportioned, in fiscal year
2006 and each fiscal year thereafter, $35,000,000 to
certain urbanized areas with populations of less than
200,000 in accordance with subsection (k); and
‘‘(2) any amount not apportioned under para-
graph (1) shall be apportioned to urbanized areas in
accordance with subsections (b) through (d).’’;
(5) in subsection (b), as redesignated—
(A) by striking ‘‘Of the amount made avail-
able or appropriated under section 5338(a) of
this title’’ and inserting ‘‘Of the amount appor-
tioned under subsection (a)(3)’’; and
(B) in paragraph (2), by striking ‘‘sub-
sections (b) and (c) of this section’’ and inserting
‘‘subsections (c) and (d)’’;
(6) in subsection (c)(2), as redesignated, by strik-
ing ‘‘subsection (a)(2) of this section’’ and inserting
‘‘subsection (b)(2)’’;
(7) in subsection (d), as redesignated, by striking
‘‘subsection (a)(2) of this section’’ and inserting ‘‘sub-
section (b)(2)’’;
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(8) in subsection (e)(1), by striking ‘‘subsections
(a) and (h)(2) of section 5338 of this title’’ and in-
serting ‘‘subsections (a) and (b) of section 5338’’;
(9) in subsection (g), by striking ‘‘subsection
(a)(1) of this section’’ each place it appears and in-
serting ‘‘subsection (b)(1)’’; and
(10) by adding at the end the following:
‘‘(j) SMALL TRANSIT INTENSIVE CITIES FACTORS.—
The amount apportioned under subsection (a)(1) shall be
apportioned to urbanized areas as follows:
‘‘(1) The Secretary shall calculate a factor equal
to the sum of revenue vehicle hours operated within
urbanized areas with a population of between 200,000
and 1,000,000 divided by the sum of the population
of all such urbanized areas.
‘‘(2) The Secretary shall designate as eligible for
an apportionment under this subsection all urbanized
areas with a population of under 200,000 for which
the number of revenue vehicle hours operated within
the urbanized area divided by the population of the
urbanized area exceeds the factor calculated under
paragraph (1).
‘‘(3) For each urbanized area qualifying for an
apportionment under paragraph (2), the Secretary
shall calculate an amount equal to the product of the
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population of that urbanized area and the factor cal-
culated under paragraph (1).
‘‘(4) For each urbanized area qualifying for an
apportionment under paragraph (2), the Secretary
shall calculate an amount equal to the difference be-
tween the number of revenue vehicle hours within that
urbanized area less the amount calculated in para-
graph (3).
‘‘(5) Each urbanized area qualifying for an ap-
portionment under paragraph (2) shall receive an
amount equal to the amount to be apportioned under
this subsection multiplied by the amount calculated
for that urbanized area under paragraph (4) divided
by the sum of the amounts calculated under para-
graph (4) for all urbanized areas qualifying for an
apportionment under paragraph (2).
‘‘(k) STUDY
ON
INCENTIVES
IN
FORMULA
PRO-
GRAMS.—
‘‘(1) STUDY.—The Secretary shall conduct a
study to assess the feasibility and appropriateness of
developing and implementing an incentive funding
system under sections 5307 and 5311 for operators of
public transportation.
‘‘(2) REPORT.—
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‘‘(A) IN GENERAL.—Not later than 1 year
after the date of enactment of the Federal Public
Transportation Act of 2005, the Secretary shall
submit a report on the results of the study con-
ducted under paragraph (1) to the Committee on
Banking, Housing, and Urban Affairs of the
Senate and the Committee on Transportation
and Infrastructure of the House of Representa-
tives.
‘‘(B) CONTENTS.—The report submitted
under subparagraph (A) shall include—
‘‘(i) an analysis of the availability of
appropriate measures to be used as a basis
for the distribution of incentive payments;
‘‘(ii) the optimal number and size of
any incentive programs;
‘‘(iii) what types of systems should
compete for various incentives;
‘‘(iv) how incentives should be distrib-
uted; and
‘‘(v) the likely effects of the incentive
funding system.’’.
SEC. 6035. APPORTIONMENTS FOR FIXED GUIDEWAY MOD-
ERNIZATION.
Section 5337 is amended—
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(1) in subsection (a), by striking ‘‘for each of fis-
cal years 1998 through 2003’’; and
(2) by striking ‘‘section 5336(b)(2)(A)’’ each
place 
it 
appears 
and 
inserting 
‘‘section
5336(c)(2)(A)’’.
SEC. 6036. AUTHORIZATIONS.
Section 5338 is amended to read as follows:
‘‘§ 5338. Authorizations
‘‘(a) FISCAL YEAR 2005.—
‘‘(1) FORMULA GRANTS.—
‘‘(A) TRUST FUND.—For fiscal year 2005,
$3,499,927,776 shall be available from the Mass
Transit Account of the Highway Trust Fund to
carry out sections 5307, 5309, 5310, and 5311 of
this chapter and section 3038 of the Transpor-
tation Equity Act for the 21st Century (49
U.S.C. 5310 note).
‘‘(B) GENERAL FUND.—In addition to the
amounts made available under subparagraph
(A), there are authorized to be appropriated
$499,989,824 for fiscal year 2005 to carry out
sections 5307, 5309, 5310, and 5311 of this chap-
ter and section 3038 of the Transportation Eq-
uity Act for the 21st Century (49 U.S.C. 5310
note).
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‘‘(C) ALLOCATION
OF
FUNDS.—Of the
amounts made available or appropriated under
this paragraph—
‘‘(i) $4,811,150 shall be available to the
Alaska Railroad for improvements to its
passenger operations under section 5307;
‘‘(ii) $6,894,400 shall be available to
provide 
over-the-road 
bus 
accessibility
grants under section 3038 of the Transpor-
tation Equity Act for the 21st Century (49
U.S.C. 5310 note);
‘‘(iii) $94,526,689 shall be available to
provide transportation services to elderly
individuals and individuals with disabil-
ities under section 5310;
‘‘(iv) $173,040,330 shall be available to
provide financial assistance for other than
urbanized areas under section 5311;
‘‘(v) $3,325,048,327 shall be available
to provide financial assistance for urban-
ized areas under section 5307;
‘‘(vi) $49,600,000 shall be available to
provide financial assistance for buses and
bus facilities under section 5309; and
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‘‘(vii) $345,996,704 shall be allocated
in accordance with section 5340 to provide
financial assistance for urbanized areas
under section 5307 and other than urban-
ized areas under section 5311.’’.
‘‘(2) JOB ACCESS AND REVERSE COMMUTE.—
‘‘(A) TRUST FUND.—For fiscal year 2005,
$108,500,000 shall be available from the Mass
Transit Account of the Highway Trust Fund to
carry out section 3037 of the Transportation Eq-
uity Act for the 21st Century (49 U.S.C. 5309
note).
‘‘(B) GENERAL FUND.—In addition to the
amounts made available under paragraph (A),
there 
are 
authorized 
to 
be 
appropriated
$15,500,000 for fiscal year 2005 to carry out sec-
tion 3037 of the Transportation Equity Act of
the 21st Century (49 U.S.C. 5309 note).
‘‘(3) CAPITAL PROGRAM GRANTS.—
‘‘(A) TRUST FUND.—For fiscal year 2005,
$2,898,100,224 shall be available from the Mass
Transit Account of the Highway Trust Fund to
carry out section 5309.
‘‘(B) GENERAL FUND.—In addition to the
amounts made available under subparagraph