596
of the net capital costs of the project, as determined
by the Secretary.
‘‘(2) OPERATING ASSISTANCE.—A grant made
under this section for operating assistance may not
exceed 50 percent of the net operating costs of the
project, as determined by the Secretary.
‘‘(3) REMAINDER.—The remainder of the net
project costs—
‘‘(A) may be provided from an undistrib-
uted cash surplus, a replacement or deprecia-
tion cash fund or reserve, a service agreement
with a State or local social service agency or a
private social service organization, or new cap-
ital; and
‘‘(B) may be derived from amounts appro-
priated to or made available to a department or
agency of the Government (other than the De-
partment of Transportation) that are eligible to
be expended for transportation.
‘‘(4) USE OF CERTAIN FUNDS.—For purposes
of paragraph (3)(B), the prohibitions on the use of
funds for matching requirements under section
403(a)(5)(C)(vii) of the Social Security Act (42
U.S.C. 603(a)(5)(C)(vii)) shall not apply to Federal
597
or State funds to be used for transportation pur-
poses.
‘‘(5) 
LIMITATION
ON
OPERATING
ASSIST-
ANCE.—A recipient carrying out a program of oper-
ating assistance under this section may not limit the
level or extent of use of the Government grant for
the payment of operating expenses.
‘‘(i) PROGRAM EVALUATION.—
‘‘(1) COMPTROLLER
GENERAL.—Beginning 1
year after the date of enactment of the Federal Pub-
lic Transportation Act of 2005, and every 2 years
thereafter, the Comptroller General shall—
‘‘(A) conduct a study to evaluate the grant
program authorized by this section; and
‘‘(B) transmit to the Committee on Trans-
portation and Infrastructure of the House of
Representatives and the Committee on Bank-
ing, Housing, and Urban Affairs of the Senate
a report describing the results of the study
under subparagraph (A).
‘‘(2) DEPARTMENT OF TRANSPORTATION.—Not
later than 3 years after the date of enactment of
Federal Public Transportation Act of 2005, the Sec-
retary shall—
598
‘‘(A) conduct a study to evaluate the effec-
tiveness of the grant program authorized by
this section and the effectiveness of recipients
making grants to subrecipients under this sec-
tion; and
‘‘(B) transmit to the committees referred
to in paragraph (1)(B) a report describing the
results of the study under subparagraph (A).’’.
(b) CONFORMING AMENDMENT.—The analysis for
chapter 53 is amended by inserting after the item relating
to section 5315 the following:
‘‘5316. Job access and reverse commute formula grants.’’.
(c) REPEAL.—Section 3037 of the Transportation
Equity Act for the 21st Century (49 U.S.C. 5309 note;
112 Stat. 387) is repealed.
SEC. 3018. NEW FREEDOM PROGRAM.
(a) IN GENERAL.—Chapter 53 is further amended by
inserting after section 5316 the following:
‘‘§ 5317. New Freedom program
‘‘(a) DEFINITIONS.—In this section, the following
definitions apply:
‘‘(1) RECIPIENT.—The term ‘recipient’ means a
designated 
recipient 
(as 
defined 
in 
section
5307(a)(2)) and a State that receives a grant under
this section directly.
599
‘‘(2) SUBRECIPIENT.—The term ‘subrecipient’
means a State or local governmental authority, non-
profit organization, or operator of public transpor-
tation services that receives a grant under this sec-
tion indirectly through a recipient.
‘‘(b) GENERAL AUTHORITY.—
‘‘(1) 
GRANTS.—The 
Secretary 
may 
make
grants under this section to a recipient for new pub-
lic transportation services and public transportation
alternatives beyond those required by the Americans
with Disabilities Act of 1990 (42 U.S.C. 12101 et
seq.) that assist individuals with disabilities with
transportation, including transportation to and from
jobs and employment support services.
‘‘(2) ADMINISTRATIVE EXPENSES.—A recipient
may use not more than 10 percent of the amounts
apportioned to the recipient under this section to ad-
minister, plan, and provide technical assistance for
a project funded under this section.
‘‘(c) APPORTIONMENTS.—
‘‘(1) FORMULA.—The Secretary shall apportion
amounts made available to carry out this section as
follows:
‘‘(A) 60 percent of the funds shall be ap-
portioned among designated recipients (as de-
600
fined in section 5307(a)(2)) for urbanized areas
with a population of 200,000 or more in the
ratio that—
‘‘(i) the number of individuals with
disabilities in each such urbanized area;
bears to
‘‘(ii) the number of individuals with
disabilities in all such urbanized areas.
‘‘(B) 20 percent of the funds shall be ap-
portioned among the States in the ratio that—
‘‘(i) the number of individuals with
disabilities in urbanized areas with a popu-
lation of less than 200,000 in each State;
bears to
‘‘(ii) the number of individuals with
disabilities in urbanized areas with a popu-
lation of less than 200,000 in all States.
‘‘(C) 20 percent of the funds shall be ap-
portioned among the States in the ratio that—
‘‘(i) the number of individuals with
disabilities in other than urbanized areas
in each State; bears to
‘‘(ii) the number of individuals with
disabilities in other than urbanized areas
in all States.
601
‘‘(2) USE OF APPORTIONED FUNDS.—Except as
provided in paragraph (3)—
‘‘(A) funds apportioned under paragraph
(1)(A) shall be used for projects serving urban-
ized areas with a population of 200,000 or
more;
‘‘(B) funds apportioned under paragraph
(1)(B) shall be used for projects serving urban-
ized areas with a population of less than
200,000; and
‘‘(C) funds apportioned under paragraph
(1)(C) shall be used for projects serving other
than urbanized areas.
‘‘(3) LOW DENSITY ADJUSTMENT.—
‘‘(A) SMALLER
URBANIZED
AREAS.—In
administering the apportionment formula under
paragraph (1)(B)—
‘‘(i) in the case of a State with a pop-
ulation density of 10 or fewer persons per
square mile, the Secretary shall multiply
by a factor of 2 the number of individuals
with disabilities in urbanized areas of the
State with a population of less than
200,000 (as determined using the most re-
cent decennial United States Census); and
602
‘‘(ii) in the case of a State with a pop-
ulation density of more than 10 but equal
to or fewer than 30 persons per square
mile, the Secretary shall multiply by a fac-
tor of 1.25 the number of individuals with
disabilities in urbanized areas of the State
with a population of less than 200,000 (as
determined using the most recent decennial
United States Census).
‘‘(B) OTHER THAN URBANIZED AREAS.—
In administering the apportionment formula
under paragraph (1)(C)—
‘‘(i) in the case of a State with a pop-
ulation density of 10 or fewer persons per
square mile in other than urbanized areas
of the State, the Secretary shall multiply
by a factor of 1.5 the number of individ-
uals with disabilities in other than urban-
ized areas of the State (as determined
using the most recent decennial United
States Census); and
‘‘(ii) in the case of a State with a pop-
ulation density of more than 10 but equal
to or fewer than 12 persons per square
mile in other than urbanized areas of the
603
State, the Secretary shall multiply by a
factor of 1.25 the number of individuals
with disabilities in other than urbanized
areas of the State (as determined using the
most recent decennial United States Cen-
sus).
‘‘(4) TRANSFERS.—
‘‘(A) IN GENERAL.—A State may transfer
any funds apportioned to it under paragraph
(1)(B) or (1)(C), or both, to an apportionment
under section 5311(c) or 5336, or both.
‘‘(B) LIMITED TO ELIGIBLE PROJECTS.—
Any funds transferred pursuant to this para-
graph shall be made available only for eligible
projects selected under this section.
‘‘(C) CONSULTATION.—A State may make
a transfer of an amount under this subsection
only after consulting with responsible local offi-
cials and publicly owned operators of public
transportation in each area for which the
amount originally was awarded under sub-
section (d)(4).
‘‘(d) COMPETITIVE PROCESS FOR GRANTS TO SUB-
RECIPIENTS.—
604
‘‘(1) AREAWIDE SOLICITATIONS.—A recipient of
funds apportioned under subsection (c)(1)(A) shall
conduct, in cooperation with the appropriate metro-
politan planning organization, an areawide solicita-
tion for applications for grants to the recipient and
subrecipients under this section.
‘‘(2) STATEWIDE SOLICITATION.—A recipient of
funds apportioned under subsection (c)(1)(B) or
(c)(1)(C) shall conduct a statewide solicitation for
applications for grants to the recipient and sub-
recipients under this section.
‘‘(3) APPLICATION.—Recipients and subrecipi-
ents seeking to receive a grant from funds appor-
tioned under subsection (c) shall submit to the re-
cipient an application in the form and in accordance
with such requirements as the recipient shall estab-
lish.
‘‘(4) GRANT
AWARDS.—The recipient shall
award grants under paragraphs (1) and (2) on a
competitive basis.
‘‘(e) GRANT REQUIREMENTS.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), a grant under this section shall be subject
to all the requirements of section 5307.
605
‘‘(2) 
EMPLOYEE
PROTECTIVE
ARRANGE-
MENTS.—Section 5333(b) shall apply to grants
under this section, except that the Secretary of
Labor shall utilize, for urbanized areas with a popu-
lation of less than 200,000 and for other than ur-
banized areas, a special warranty described in sec-
tion 215.7 of title 29, Code of Federal Regulations
(as in effect on the date of enactment of the Federal
Public Transportation Act of 2005), that provides a
fair and equitable arrangement to protect the inter-
est of employees.
‘‘(3) FAIR AND EQUITABLE DISTRIBUTION.—A
recipient of a grant under this section shall certify
that allocations of the grant to subrecipients are dis-
tributed on a fair and equitable basis.
‘‘(f) COORDINATION.—
‘‘(1) IN GENERAL.—The Secretary shall coordi-
nate activities under this section with related activi-
ties under programs of other Federal departments
and agencies.
‘‘(2) WITH NONPROFIT PROVIDERS.—A recipi-
ent that transfers funds to an apportionment under
section 5336 pursuant to subsection (c)(2) shall cer-
tify that the project for which the funds are re-
606
quested under this section has been coordinated with
nonprofit providers of services.
‘‘(3) PROJECT
SELECTION
AND
PLANNING.—
Beginning in fiscal year 2007, a recipient of funds
under this section shall certify that—
‘‘(A) the projects selected were derived
from a locally developed, coordinated public
transit-human services transportation plan; and
‘‘(B) the plan was developed through a
process that included representatives of public,
private, and nonprofit transportation and
human services providers and participation by
the public.
‘‘(g) GOVERNMENT’S SHARE OF COSTS.—
‘‘(1) CAPITAL PROJECTS.—A grant for a capital
project under this section may not exceed 80 percent
of the net capital costs of the project, as determined
by the Secretary.
‘‘(2) OPERATING ASSISTANCE.—A grant made
under this section for operating assistance may not
exceed 50 percent of the net operating costs of the
project, as determined by the Secretary.
‘‘(3) REMAINDER.—The remainder of the net
project costs—
607
‘‘(A) may be provided from an undistrib-
uted cash surplus, a replacement or deprecia-
tion cash fund or reserve, a service agreement
with a State or local social service agency or a
private social service organization, or new cap-
ital; and
‘‘(B) may be derived from amounts appro-
priated to or made available to a department or
agency of the Government (other than the De-
partment of Transportation) that are eligible to
be expended for transportation.
‘‘(4) USE OF CERTAIN FUNDS.—For purposes
of paragraph (3)(B), the prohibitions on the use of
funds for matching requirements under section
403(a)(5)(C)(vii) of the Social Security Act (42
U.S.C. 603(a)(5)(C)(vii)) shall not apply to Federal
or State funds to be used for transportation pur-
poses.
‘‘(5) 
LIMITATION
ON
OPERATING
ASSIST-
ANCE.—A recipient carrying out a program of oper-
ating assistance under this section may not limit the
level or extent of use of the Government grant for
the payment of operating expenses.’’.
608
(b) CONFORMING AMENDMENT.—The analysis for
chapter 53 is amended by inserting after the item relating
to section 5316 the following:
‘‘5317. New freedom program.’’.
SEC. 3019. BUS TESTING FACILITY.
(a) IN GENERAL.—Section 5318 is amended—
(1) by striking subsection (a) and inserting the
following:
‘‘(a) FACILITY.—The Secretary of Transportation
shall maintain one facility for testing a new bus model
for maintainability, reliability, safety, performance (in-
cluding braking performance), structural integrity, fuel
economy, emissions, and noise.’’;
(2) in subsection (d) by striking ‘‘under section
5309(m)(1)(C) of this title’’ and inserting ‘‘to carry
out this section’’; and
(3) by striking subsection (e) and inserting the
following:
‘‘(e) ACQUIRING NEW BUS MODELS.—Amounts ap-
propriated or made available under this chapter may be
obligated or expended to acquire a new bus model only
if a bus of that model has been tested at the facility main-
tained by the Secretary under subsection (a).’’.
(b) CONFORMING AMENDMENT.—Section 5323(c) is
repealed.
609
SEC. 3020. BICYCLE FACILITIES.
The first sentence of section 5319 is amended—
(1) by striking ‘‘5309(h),’’ and inserting
‘‘5309(g),’’; and
(2) by striking ‘‘and 5311’’ and inserting
‘‘5311, and 5320’’.
SEC. 3021. TRANSIT IN THE PARKS PILOT PROGRAM.
(a) IN GENERAL.—Section 5320 is amended to read
as follows:
‘‘§ 5320. Transit in the parks pilot program
‘‘(a) PUBLIC TRANSPORTATION DEFINED.—In this
section, the term ‘public transportation’ means general or
special transportation to the public by a conveyance that
is publicly or privately owned. Such term does not include
schoolbus or charter transportation but does include sight-
seeing transportation.
‘‘(b) ESTABLISHMENT.—Not later than 90 days after
the date of enactment of the Federal Public Transpor-
tation Act of 2005, the Secretary of Transportation and
the Secretary of the Interior shall enter into a memo-
randum of understanding to establish a transit in the
parks pilot program in accordance with the requirements
of this section.
‘‘(c) PURPOSE.—The purpose of the pilot program
shall be to encourage and promote the development of
transportation systems described in section 5301(a) within
610
units of the National Park System to improve visitor mo-
bility and enjoyment (including visitors with disabilities),
reduce pollution and congestion, and enhance resource
protection through the use of public transportation.
‘‘(d) ADMINISTRATION OF PROGRAM.—The program
shall be administered by the Secretary of Transportation,
in consultation with the Secretary of the Interior.
‘‘(e) MEMORANDUM OF UNDERSTANDING.—
‘‘(1) PLANNING.—The memorandum of under-
standing under subsection (b) shall include transpor-
tation planning procedures that are consistent with
the metropolitan and statewide planning processes
required under chapter 52.
‘‘(2) PROGRAMS.—The memorandum of under-
standing shall include descriptions of programs and
activities eligible for assistance under the pilot pro-
gram.
‘‘(3) EXCEPTIONS.—The memorandum of un-
derstanding shall limit or modify the applicability of
the provisions referred to in subsection (f) to the ex-
tent necessary to carry out the objectives of this sec-
tion and to be compatible with the laws and regula-
tions governing units of the National Park System.
‘‘(f) ELIGIBLE USE OF FUNDS.—Except as provided
under subsection (e)(3), the Secretary may provide funds
611
made available to carry out this section to the Secretary
of the Interior under interagency agreements for the fol-
lowing purposes:
‘‘(1) PLANNING, ENGINEERING, DESIGN, AND
EVALUATION.—Planning, engineering, design, and
evaluation of public transportation projects in units
of the National Park System, and for technical stud-
ies, in accordance with section 5305(b)(2).
‘‘(2) 
PUBLIC
TRANSPORTATION
CAPITAL
PROJECTS.—Public transportation capital projects
(as defined in section 5302(a)(1)) for such units in
accordance with all the terms and conditions to
which a grant is made under subsections (a), (b),
(c), and (d) of section 5307 and such other terms
and conditions as are determined by the Secretary.
The Secretary of the Interior shall act as the des-
ignated recipient for the purposes of subsection
(a)(2) of section 5307.
‘‘(3) OPERATING
COSTS.—Operating costs of
equipment and facilities used in public transpor-
tation for such units.
‘‘(g) GOVERNMENT’S SHARE OF COSTS.—
‘‘(1) CAPITAL
PROJECTS.—The Government
share of the cost of any capital project or activity
612
under this section shall be 100 percent of the costs
of the project, as determined by the Secretary.
‘‘(2) OPERATING ASSISTANCE.—A grant made
under this section for operating assistance may not
exceed 50 percent of the net operating costs of the
project, as determined by the Secretary.
‘‘(h) SAVINGS CLAUSE.—Nothing in this section shall
be construed as superseding, amending, modifying, or re-
pealing any provision of law applicable to units of the Na-
tional Park System.’’.
(b) CONFORMING AMENDMENT.—The analysis for
such chapter is further amended by striking the item relat-
ing to section 5320 and inserting the following:
‘‘5320. Transit in the parks pilot program.’’.
SEC. 3022. HUMAN RESOURCE PROGRAMS.
Section 5322 is amended—
(1) by inserting ‘‘(a) In General.—’’ before
‘‘The Secretary’’; and
(2) by adding at the end the following:
‘‘(b) GRANTS
TO
HIGHER
LEARNING
INSTITU-
TIONS.—
‘‘(1) AUTHORITY TO MAKE GRANTS.—The Sec-
retary may make grants to nonprofit institutions of
higher learning—
613
‘‘(A) to conduct research and investiga-
tions into the theoretical or practical problems
of public transportation; and
‘‘(B) to train individuals to conduct fur-
ther research or obtain employment in an orga-
nization that plans, builds, operates, or man-
ages a public transportation system.
‘‘(2) RESEARCH
AND
INVESTIGATIONS.—Re-
search and investigations under this subsection
include—
‘‘(A) the design and use of public transpor-
tation systems and public roads and highways;
‘‘(B) the interrelationship between various
modes of urban, suburban, rural, and intercity
transportation;
‘‘(C) the role of transportation planning in
overall urban planning;
‘‘(D) public preferences in transportation;
‘‘(E) the economic allocation of transpor-
tation resources; and
‘‘(F) the legal, financial, engineering, and
esthetic aspects of public transportation.
‘‘(3) PREFERENCE.—When making a grant
under this subsection, the Secretary shall give pref-
erence to an institution that brings together knowl-
614
edge and expertise in the various social science and
technical disciplines related to public transportation
problems.
‘‘(c) FELLOWSHIPS.—
‘‘(1) AUTHORITY TO MAKE GRANTS.—The Sec-
retary may make grants to States, local govern-
mental authorities, and operators of public transpor-
tation systems to provide fellowships to train per-
sonnel employed in managerial, technical, and pro-
fessional positions in the public transportation field.
‘‘(2) TERMS.—
‘‘(A) PERIOD OF TRAINING.—A fellowship
under this subsection may be for not more than
one year of training in an institution that offers
a program applicable to the public transpor-
tation industry.
‘‘(B) SELECTION
OF
INDIVIDUALS.—The
recipient of the grant shall select an individual
on the basis of demonstrated ability and for the
contribution the individual reasonably can be
expected to make to an efficient public trans-
portation operation.
‘‘(C) AMOUNT.—A grant for a fellowship
may not be more than the lesser of $65,000 or
75 percent of—
615
‘‘(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
616
(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—
617
(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:
618
‘‘(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
619
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.—
620
(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:
621
‘‘(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.
622
(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.
623
(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;
624
‘‘(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-
625
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.—
626
‘‘(A) FINDINGS BY THE SECRETARY.—The
Secretary may approve an application for finan-
cial assistance for a capital project in accord-
ance with this chapter only if the Secretary
makes written findings, after reviewing the ap-
plication and the transcript of any hearing held
before a State or local governmental authority
under section 5323(b), that—
‘‘(i) 
an 
adequate 
opportunity 
to
present views was given to all parties hav-
ing a significant economic, social, or envi-
ronmental interest;
‘‘(ii) the preservation and enhance-
ment of the environment and the interest
of the community in which the project is
located were considered; and
‘‘(iii) no adverse environmental effect
is likely to result from the project, or no
feasible and prudent alternative to the ef-
fect exists and all reasonable steps have
been taken to minimize the effect.
‘‘(B) HEARING.—If a hearing has not been
conducted or the Secretary decides that the
record of the hearing is inadequate for making
the findings required by this subsection, the
627
Secretary shall conduct a hearing on an envi-
ronmental issue raised by the application after
giving adequate notice to interested persons.
‘‘(C) AVAILABILITY
OF
FINDINGS.—The
Secretary’s findings under subparagraph (A)
shall be made a matter of public record.’’.
(b) CONFORMING AMENDMENT.—The analysis for
chapter 53 is amended by striking the item relating to
section 5324 and inserting the following:
‘‘5324. Special provisions for capital projects.’’.
SEC. 3025. CONTRACT REQUIREMENTS.
(a) IN GENERAL.—Section 5325 is amended—
(1) by striking subsections (a) and (b) and in-
serting the following:
‘‘(a) COMPETITION.—Recipients of Federal assist-
ance under this chapter shall conduct all procurement
transactions involving such assistance in a manner pro-
viding full and open competition, as determined by the
Secretary.
‘‘(b) ARCHITECTURAL, ENGINEERING, AND DESIGN
CONTRACTS.—
‘‘(1) 
PROCEDURES
FOR
AWARDING
CON-
TRACT.—A contract or requirement for program
management, architectural engineering, construction
management, a feasibility study, and preliminary en-
gineering, design, architectural, engineering, sur-
628
veying, mapping, or related services for a project for
which Federal assistance is provided under this
chapter shall be awarded in the same way as a con-
tract for architectural and engineering services is ne-
gotiated under chapter 11 of title 40 or an equiva-
lent qualifications-based requirement of a State.
‘‘(2) EFFECT
OF
STATE
LAWS.—This sub-
section does not apply to the extent a State has
adopted, before the date of enactment of the Federal
Public Transportation Act of 2005, by law a formal
procedure for procuring those services.
‘‘(3) ADMINISTRATION OF CONTRACTS.—When
awarding such contracts, recipients of assistance
under this chapter shall maximize efficiencies of ad-
ministration by accepting nondisputed audits con-
ducted by other governmental agencies as follows:
‘‘(A) PERFORMANCE
OF
AUDITS.—Any
contract or subcontract awarded under this
chapter shall be performed and audited in com-
pliance with cost principles contained in the
Federal Acquisition Regulation (part 31 of title
48, Code of Federal Regulations).
‘‘(B) INDIRECT COST RATES.—Instead of
performing its own audits, a recipient of funds
under a contract or subcontract awarded under
629
this chapter shall accept indirect cost rates es-
tablished in accordance with the Federal Acqui-
sition Regulation for one-year applicable ac-
counting periods by a cognizant Federal or
State government agency, if such rates are not
currently under dispute.
‘‘(C) APPLICATION
OF
RATES.—Once a
firm’s indirect cost rates are accepted under
this paragraph, the recipient of the funds shall
apply such rates for the purposes of contract
estimation, negotiation, administration, report-
ing, and contract payment and shall not be lim-
ited by administrative or de facto ceilings.
‘‘(D) 
PRENOTIFICATION; 
CONFIDEN-
TIALITY
OF
DATA.—A recipient of funds re-
questing or using the cost and rate data de-
scribed in paragraph (3) shall notify any af-
fected firm before such request or use. Such
data shall be confidential and shall not be ac-
cessible or provided, in whole or in part, to an-
other firm or to any government agency that is
not part of the group of agencies sharing cost
data under this paragraph, except by written
permission of the audited firm. If prohibited by
630
law, such cost and rate data shall not be dis-
closed under any circumstances.’’; and
(2) by adding at the end the following:
‘‘(d) DESIGN-BUILD SYSTEM PROJECTS.—
‘‘(1) DEFINITION.—In this section, the term
‘design-build system project’ means a project under
which a recipient enters into a contract with a seller,
firm, or consortium of firms to design and build a
public transportation system or an operable segment
thereof that meets specific performance criteria.
Such project may also include an option to finance,
or operate for a period of time, the system or seg-
ment or any combination of designing, building, op-
erating, or maintaining such system or segment.
‘‘(2) FINANCIAL ASSISTANCE.—Government fi-
nancial assistance under this chapter may be made
available for the capital costs of a design-build sys-
tem project after the recipient complies with Govern-
ment requirements.
‘‘(e) MULTIYEAR ROLLING STOCK.—
‘‘(1) CONTRACTS.—A recipient procuring roll-
ing stock with Government financial assistance
under this chapter may make a multiyear contract
to buy the rolling stock and replacement parts under
which the recipient has an option to buy additional
631
rolling stock or replacement parts for not more than
5 years after the date of the original contract.
‘‘(2) COOPERATION AMONG RECIPIENTS.—The
Secretary shall allow at least 2 recipients to act on
a cooperative basis to procure rolling stock in com-
pliance with this subsection and other Government
procurement requirements.
‘‘(f) ACQUIRING ROLLING STOCK.—A recipient of fi-
nancial assistance under this chapter may enter into a
contract to expend that assistance to acquire rolling
stock—
‘‘(1) based on—
‘‘(A) initial capital costs; or
‘‘(B) performance, standardization, life
cycle costs, and other factors; or
‘‘(2) with a party selected through a competi-
tive procurement process.
‘‘(g) EXAMINATION OF THE RECORDS.—Upon re-
quest, the Secretary, the Comptroller General, or a rep-
resentative of the Secretary or the Comptroller General
shall have access to and the right to examine and inspect
all records, documents, papers, including contracts, re-
lated to a project for which a grant is made under this
chapter.
632
‘‘(h) GRANT PROHIBITIONS.—A grant may not be
used to support a procurement that uses an exclusionary
or discriminatory specification.
‘‘(i) BUS DEALER REQUIREMENTS.—No State law
requiring buses to be purchased through in-State dealers
shall apply to vehicles purchased with a grant under this
chapter. ’’.
(b) CONFORMING AMENDMENTS.—Section 5326, and
the item relating to section 5326 in the analysis for chap-
ter 53, are repealed.
SEC. 3026. PROJECT MANAGEMENT OVERSIGHT AND RE-
VIEW.
(a) 
PROJECT
MANAGEMENT
PLAN
REQUIRE-
MENTS.—Section 5327(a) is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(11);
(2) by striking the period at the end of para-
graph (12) and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(13) safety and security management.’’.
(b) LIMITATIONS.—Section 5327(c) is amended to
read as follows:
‘‘(c) LIMITATIONS.—
‘‘(1) LIMITATIONS
ON
USE
OF
AVAILABLE
AMOUNTS.—The Secretary may use not more than
633
.5 percent of amounts made available for a fiscal
year to carry out section 5311, not more than .75
percent of amounts made available for a fiscal year
to carry out section 5307, and not more than 1 per-
cent of amounts made available for a fiscal year to
carry out section 5309 to make contracts for the fol-
lowing activities:
‘‘(A) To oversee the construction of a
major project.
‘‘(B) To review and audit the safety and
security, procurement, management, and finan-
cial compliance of a recipient or subrecipient of
funds under sections 5307, 5309, and 5311.
‘‘(C) To provide technical assistance to
correct deficiencies identified in compliance re-
views and audits carried out under this section.
‘‘(2) LIMITATIONS
ON
APPLICABILITY.—Sub-
sections (a), (b), and (e) do not apply to contracts
under this section for activities described in para-
graphs (1)(B) and (1)(C).
‘‘(3) GOVERNMENT’S SHARE OF COSTS.—The
Government shall pay the entire cost of carrying out
a contract under this subsection.’’.
634
SEC. 3027. INVESTIGATIONS OF SAFETY AND HAZARDS.
(a) IN GENERAL.—Section 5329 is amended to read
as follows:
‘‘§ 5329. Investigation of safety and hazards
‘‘(a) IN GENERAL.—The Secretary may investigate
safety and security risks associated with a condition in
equipment, a facility, or an operation financed under this
chapter that the Secretary believes causes a serious hazard
of death or injury to establish the nature and extent of
the condition and how to eliminate, mitigate, or correct
it.
‘‘(b) PLANS
FOR ELIMINATING, MITIGATING, OR
CORRECTING HAZARDS.—If the Secretary establishes that
a condition causes a hazard, the Secretary shall require
the local governmental authority receiving amounts under
this chapter to submit a plan for eliminating, mitigating,
or correcting it.
‘‘(c) WITHHOLDING FINANCIAL ASSISTANCE.—Fi-
nancial assistance under this chapter, in an amount to be
determined by the Secretary, may be withheld until a plan
is approved and carried out.’’.
(b) CONFORMING AMENDMENT.—The analysis for
chapter 53 is amended by striking the item relating to
section 5329 and inserting the following:
‘‘5329. Investigation of safety and hazards.’’.
635
SEC. 3028. STATE SAFETY OVERSIGHT.
(a) IN GENERAL.—Section 5330 is amended—
(1) by striking the section heading and all that
follows through subsection (a) and inserting the fol-
lowing:
‘‘§ 5330. State safety oversight
‘‘(a) APPLICATION.—This section applies only to—
‘‘(1) States that have rail fixed guideway public
transportation systems not subject to regulation by
the Federal Railroad Administration; and
‘‘(2) States that are designing rail fixed guide-
way public transportation systems that will not be
subject to regulation by the Federal Railroad Ad-
ministration.’’;
(2) in subsection (d) by inserting ‘‘shall ensure
uniform safety standards and enforcement and’’
after ‘‘affected States’’; and
(3) by striking subsection (f).
(b) CONFORMING AMENDMENT.—The analysis for
chapter 53 is amended by striking the item relating to
section 5330 and inserting the following:
‘‘5330. State safety oversight.’’.
SEC. 3029. CONTROLLED SUBSTANCES AND ALCOHOL MIS-
USE TESTING.
(a) DEFINITIONS.—Section 5331(a)(3) is amended
by striking the period at the end and inserting the fol-
636
lowing: ‘‘or section 2303a, 7101(i), or 7302(e) of title 46.
The Secretary may also decide that a form of public trans-
portation is covered adequately, for employee alcohol and
controlled substances testing purposes, under the alcohol
and controlled substance statutes or regulations of an
agency within the Department of Transportation or the
Coast Guard.’’.
(b) TECHNICAL CORRECTIONS.—Subsections (b)(1)
and (g) of section 5331 are each amended by striking ‘‘or
section 103(e)(4) of title 23’’.
(c) REGULATIONS.—Section 5331(f) is amended by
striking paragraph (3).
SEC. 3030. EMPLOYEE PROTECTIVE ARRANGEMENTS.
Section 5333(b)(1) is amended by striking ‘‘5318(d),
5323(a)(1), (b), (d), and (e), 5328, 5337, and 5338(b)’’
each place it appears and inserting ‘‘5316, 5317, 5318,
5320, 5323(a)(1), 5323(b), 5323(d), 5328, 5337,
5338(b), 5338(g), and 5338(h)’’.
SEC. 3031. ADMINISTRATIVE PROCEDURES.
Section 5334 is amended—
(1) in subsection (a)—
(A) by striking ‘‘and’’ at the end of para-
graph (9);
(B) by striking the period at the end of
paragraph (10) and inserting ‘‘; and’’; and
637
(C) by adding at the end the following:
‘‘(11) issue regulations as necessary to carry
out the purposes of this chapter.’’;
(2) by striking subsection (i);
(3) by redesignating subsections (b) through (h)
as subsections (c) through (i), respectively;
(4) by inserting after subsection (a) the fol-
lowing:
‘‘(b) PROHIBITIONS AGAINST REGULATING OPER-
ATIONS AND CHARGES.—
‘‘(1) IN GENERAL.—Except for purposes of na-
tional defense or in the event of a national or re-
gional emergency, the Secretary may not regulate
the operation, routes, or schedules of a public trans-
portation system for which a grant is made under
this chapter, nor may the Secretary regulate the
rates, fares, tolls, rentals, or other charges pre-
scribed by any provider of public transportation.
‘‘(2) LIMITATION
ON
STATUTORY
CONSTRUC-
TION.—Nothing in this subsection shall be construed
to prevent the Secretary from requiring a recipient
of funds under this chapter to comply with the
terms and conditions of its Federal assistance agree-
ment.’’;