H. R. 3—421
‘‘(i) consistent with the statewide transportation 
plan developed under this section for the State; 
‘‘(ii) identical to the project or phase of the project 
as described in an approved metropolitan transpor-
tation plan; and 
‘‘(iii) in conformance with the applicable State air 
quality implementation plan developed under the 
Clean Air Act, if the project is carried out in an area 
designated as nonattainment for ozone, particulate 
matter, or carbon monoxide under that Act. 
‘‘(E) REQUIREMENT OF ANTICIPATED FULL FUNDING.—
The transportation improvement program shall include a 
project, or an identified phase of a project, only if full 
funding can reasonably be anticipated to be available for 
the project within the time period contemplated for comple-
tion of the project. 
‘‘(F) FINANCIAL
PLAN.—The transportation improve-
ment program may include a financial plan that dem-
onstrates how the approved transportation improvement 
program can be implemented, indicates resources from 
public and private sources that are reasonably expected 
to be made available to carry out the transportation 
improvement program, and recommends any additional 
financing strategies for needed projects and programs. The 
financial plan may include, for illustrative purposes, addi-
tional projects that would be included in the adopted 
transportation plan if reasonable additional resources 
beyond those identified in the financial plan were available. 
‘‘(G) SELECTION
OF
PROJECTS
FROM
ILLUSTRATIVE 
LIST.—
‘‘(i) NO
REQUIRED
SELECTION.—Notwithstanding 
subparagraph (F), a State shall not be required to 
select any project from the illustrative list of additional 
projects included in the financial plan under subpara-
graph (F). 
‘‘(ii) REQUIRED ACTION BY THE SECRETARY.—Action 
by the Secretary shall be required for a State to select 
any project from the illustrative list of additional 
projects included in the financial plan under subpara-
graph (F) for inclusion in an approved transportation 
improvement program. 
‘‘(H) PRIORITIES.—The transportation improvement 
program shall reflect the priorities for programming and 
expenditures of funds, including transportation enhance-
ment activities, required by this chapter and title 23. 
‘‘(5) PROJECT SELECTION FOR AREAS OF LESS THAN 50,000 
POPULATION.—Projects carried out in areas with populations 
of less than 50,000 individuals shall be selected, from the 
approved transportation improvement program (excluding 
projects carried out on the National Highway System and 
projects carried out under the bridge program or the Interstate 
maintenance program under title 23 or sections 5310, 5311, 
5316, and 5317 of this title) by the State in cooperation with 
the affected nonmetropolitan local officials with responsibility 
for transportation. Projects carried out in areas with popu-
lations of less than 50,000 individuals on the National Highway
H. R. 3—422
System or under the bridge program or the Interstate mainte-
nance program under title 23 or sections 5310, 5311, 5316, 
and 5317 of this title shall be selected, from the approved 
statewide transportation improvement program, by the State 
in consultation with the affected nonmetropolitan local officials 
with responsibility for transportation. 
‘‘(6) TRANSPORTATION IMPROVEMENT PROGRAM APPROVAL.—
Every 4 years, a transportation improvement program devel-
oped under this subsection shall be reviewed and approved 
by the Secretary if based on a current planning finding. 
‘‘(7) PLANNING FINDING.—A finding shall be made by the 
Secretary at least every 4 years that the transportation plan-
ning process through which statewide transportation plans and 
programs are developed is consistent with this section and 
section 5303. 
‘‘(8) 
MODIFICATIONS
TO
PROJECT
PRIORITY.—Notwith-
standing any other provision of law, action by the Secretary 
shall not be required to advance a project included in the 
approved transportation improvement program in place of 
another project in the program. 
‘‘(h) FUNDING.—Funds set aside pursuant to section 5305(g) 
of this title and section 104(i) of title 23 shall be available to 
carry out this section. 
‘‘(i) TREATMENT
OF CERTAIN STATE LAWS
AS CONGESTION 
MANAGEMENT PROCESSES.—For purposes of this section and section 
5303, and sections 134 and 135 of title 23, State laws, rules, 
or regulations pertaining to congestion management systems or 
programs may constitute the congestion management process under 
this section and section 5303, and sections 134 and 135 of title 
23, if the Secretary finds that the State laws, rules, or regulations 
are consistent with, and fulfill the intent of, the purposes of this 
section, section 5303, and sections 134 and 135 of title 23, as 
appropriate. 
‘‘(j) CONTINUATION OF CURRENT REVIEW PRACTICE.—Since the 
statewide transportation plan and the transportation improvement 
program described in this section are subject to a reasonable oppor-
tunity for public comment, since individual projects included in 
the statewide transportation plans and the transportation improve-
ment program are subject to review under the National Environ-
mental Policy Act of 1969 (42 U.S.C. 4321 et seq.), and since 
decisions by the Secretary concerning statewide transportation 
plans or the transportation improvement program described in this 
section have not been reviewed under such Act as of January 
1, 1997, any decision by the Secretary concerning a metropolitan 
or statewide transportation plan or the transportation improvement 
program described in this section shall not be considered to be 
a Federal action subject to review under such Act.’’. 
(b) SCHEDULE FOR IMPLEMENTATION.—The Secretary shall issue 
guidance on a schedule for implementation of the changes made 
by this section, taking into consideration the established planning 
update cycle for States and metropolitan planning organizations. 
The Secretary shall not require a State or metropolitan planning 
organization to deviate from its established planning update cycle 
to implement changes made by this section. Beginning July 1, 
2007, State or metropolitan planning organization plan or program 
updates shall reflect changes made by this section.
H. R. 3—423
(c) CHAPTER ANALYSIS.—The analysis for chapter 53 is amended 
by striking the item relating to section 5304 and inserting the 
following:
‘‘5304. Statewide transportation planning.’’.
SEC. 3007. PLANNING PROGRAMS. 
(a) IN GENERAL.—Section 5305 is amended to read as follows: 
‘‘§ 5305. Planning programs 
‘‘(a) STATE DEFINED.—In this section, the term ‘State’ means 
a State of the United States, the District of Columbia, and Puerto 
Rico. 
‘‘(b) GENERAL AUTHORITY.—
‘‘(1) GRANTS AND AGREEMENTS.—Under criteria established 
by the Secretary, the Secretary may award grants to States, 
authorities of the States, metropolitan planning organizations, 
and local governmental authorities, and make agreements with 
other departments, agencies, or instrumentalities of the Govern-
ment to—
‘‘(A) develop transportation plans and programs; 
‘‘(B) plan, engineer, design, and evaluate a public 
transportation project; and 
‘‘(C) conduct technical studies relating to public 
transportation. 
‘‘(2) ELIGIBLE ACTIVITIES.—Activities eligible under para-
graph (1) include the following: 
‘‘(A) Studies related to management, planning, oper-
ations, capital requirements, and economic feasibility. 
‘‘(B) Evaluating previously financed projects. 
‘‘(C) Peer reviews and exchanges of technical data, 
information, assistance, and related activities in support 
of planning and environmental analyses among metropoli-
tan planning organizations and other transportation plan-
ners. 
‘‘(D) Other similar and related activities preliminary 
to and in preparation for constructing, acquiring, or 
improving the operation of facilities and equipment. 
‘‘(c) PURPOSE.—To the extent practicable, the Secretary shall 
ensure that amounts appropriated or made available under section 
5338 to carry out this section and sections 5303, 5304, and 5306 
are used to support balanced and comprehensive transportation 
planning that considers the relationships among land use and all 
transportation modes, without regard to the programmatic source 
of the planning amounts. 
‘‘(d) METROPOLITAN PLANNING PROGRAM.—
‘‘(1) APPORTIONMENT TO STATES.—
‘‘(A) IN GENERAL.—The Secretary shall apportion 80 
percent of the amounts made available under subsection 
(g)(1) among the States to carry out sections 5303 and 
5306 in the ratio that—
‘‘(i) the population of urbanized areas in each State, 
as shown by the latest available decennial census of 
population; bears to 
‘‘(ii) the total population of urbanized areas in 
all States, as shown by that census.
H. R. 3—424
‘‘(B) 
MINIMUM
APPORTIONMENT.—Notwithstanding 
subparagraph (A), a State may not receive less than 0.5 
percent of the amount apportioned under this paragraph. 
‘‘(2) ALLOCATION
TO
MPO’S.—Amounts apportioned to a 
State under paragraph (1) shall be made available, not later 
than 30 days after the date of apportionment, to metropolitan 
planning organizations in the State designated under this sec-
tion under a formula that—
‘‘(A) considers population of urbanized areas; 
‘‘(B) provides an appropriate distribution for urbanized 
areas to carry out the cooperative processes described in 
this section; 
‘‘(C) the State develops in cooperation with the metro-
politan planning organizations; and 
‘‘(D) the Secretary approves. 
‘‘(3) SUPPLEMENTAL AMOUNTS.—
‘‘(A) IN GENERAL.—The Secretary shall apportion 20 
percent of the amounts made available under subsection 
(g)(1) among the States to supplement allocations made 
under paragraph (1) for metropolitan planning organiza-
tions. 
‘‘(B) FORMULA.—The Secretary shall apportion amounts 
referred to in subparagraph (A) under a formula that 
reflects the additional cost of carrying out planning, 
programming, and project selection responsibilities under 
sections 5303 and 5306 in certain urbanized areas. 
‘‘(e) STATE PLANNING AND RESEARCH PROGRAM.—
‘‘(1) APPORTIONMENT TO STATES.—
‘‘(A) IN GENERAL.—The Secretary shall apportion the 
amounts made available under subsection (g)(2) among 
the States for grants and contracts to carry out this section 
and sections 5304, 5306, 5315, and 5322 in the ratio that—
‘‘(i) the population of urbanized areas in each State, 
as shown by the latest available decennial census; 
bears to 
‘‘(ii) the population of urbanized areas in all States, 
as shown by that census. 
‘‘(B) 
MINIMUM
APPORTIONMENT.—Notwithstanding 
subparagraph (A), a State may not receive less than 0.5 
percent of the amount apportioned under this paragraph. 
‘‘(2) SUPPLEMENTAL AMOUNTS.—A State, as the State con-
siders appropriate, may authorize part of the amount made 
available under this subsection to be used to supplement 
amounts made available under subsection (d). 
‘‘(f) GOVERNMENT’S SHARE OF COSTS.—The Government’s share 
of the cost of an activity funded using amounts made available 
under this section may not exceed 80 percent of the cost of the 
activity unless the Secretary determines that it is in the interests 
of the Government not to require a State or local match. 
‘‘(g) ALLOCATION OF FUNDS.—Of the funds made available by 
or appropriated to carry out this section under section 5338(c) 
for fiscal years 2005 through 2009—
‘‘(1) 82.72 percent shall be available for the metropolitan 
planning program under subsection (d); and 
‘‘(2) 17.28 percent shall be available to carry out subsection 
(e).
H. R. 3—425
‘‘(h) AVAILABILITY OF FUNDS.—Funds apportioned under this 
section to a State that have not been obligated in the 3-year period 
beginning after the last day of the fiscal year for which the funds 
are authorized shall be reapportioned among the States.’’. 
(b) CHAPTER ANALYSIS.—The analysis for chapter 53 is amended 
by striking the item relating to section 5305 and inserting the 
following:
‘‘5305. Planning programs.’’.
SEC. 3008. PRIVATE ENTERPRISE PARTICIPATION. 
Section 5306(a) is amended by inserting ‘‘, as determined by 
local policies, criteria, and decisionmaking,’’ after ‘‘feasible’’. 
SEC. 3009. URBANIZED AREA FORMULA GRANTS. 
(a) TECHNICAL AMENDMENTS.—Section 5307 is amended—
(1) by striking subsections (h), (j) and (k); and 
(2) by redesignating subsections (i), (l), (m), and (n) as 
subsections (h), (i), (j), and (k), respectively. 
(b) DEFINITIONS.—
(1) ASSOCIATED
CAPITAL
MAINTENANCE
ITEMS.—Section 
5307(a)(1) is amended—
(A) by striking ‘‘means equipment, tires,’’ and inserting 
‘‘means—
‘‘(A) equipment, tires,’’; 
(B) in subparagraph (A) (as so designated) by striking 
the period at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(B) reconstruction of equipment and material, each 
of which after reconstruction will have a fair market value 
of at least .5 percent of the current fair market value 
of rolling stock comparable to the rolling stock for which 
the equipment and material will be used.’’. 
(2) 
DESIGNATED
RECIPIENT.—Section 
5307(a)(2)(A) 
is 
amended to read as follows: 
‘‘(A) an entity designated, in accordance with the plan-
ning process under sections 5303, 5304, and 5306, by the 
chief executive officer of a State, responsible local officials, 
and publicly owned operators of public transportation, to 
receive and apportion amounts under section 5336 that 
are attributable to transportation management areas 
identified under section 5303; or’’. 
(c) GENERAL AUTHORITY.—Section 5307(b) is amended—
(1) by striking paragraph (1) and inserting the following: 
‘‘(1) GRANTS.—The Secretary may make grants under this 
section for—
‘‘(A) capital projects and associated capital mainte-
nance items; 
‘‘(B) planning; 
‘‘(C) transit enhancements; 
‘‘(D) operating costs of equipment and facilities for 
use in public transportation in an urbanized area with 
a population of less than 200,000; 
‘‘(E) operating costs of equipment and facilities for 
use in public transportation in a portion or portions of 
an urbanized area with a population of at least 200,000, 
but not more than 225,000, if—
H. R. 3—426
‘‘(i) the urbanized area includes parts of more than 
one State; 
‘‘(ii) the portion of the urbanized area includes 
only one State; 
‘‘(iii) the population of the portion of the urbanized 
area is less than 30,000; and 
‘‘(iv) the grants will not be used to provide public 
transportation outside of the portion of the urbanized 
area; and 
‘‘(F) operating costs of equipment and facilities for use 
in public transportation for local governmental authorities 
in areas which adopted transit operating and financing 
plans that became a part of the Houston, Texas, urbanized 
area as a result of the 2000 decennial census of population, 
but lie outside the service area of the principal public 
transportation agency that serves the Houston urbanized 
area.’’; 
(2) by striking paragraph (2) and inserting the following: 
‘‘(2) SPECIAL RULE FOR FISCAL YEARS 2005 THROUGH 2007.—
‘‘(A) INCREASED
FLEXIBILITY.—The Secretary may 
award grants under this section, from funds made available 
to carry out this section for each of the fiscal years 2005 
through 2007, to finance the operating cost of equipment 
and facilities for use in mass transportation in an urbanized 
area with a population of at least 200,000, as determined 
by the 2000 decennial census of population, if—
‘‘(i) the urbanized area had a population of less 
than 200,000, as determined by the 1990 decennial 
census of population; 
‘‘(ii) a portion of the urbanized area was a separate 
urbanized area with a population of less than 200,000, 
as determined by the 1990 decennial census of popu-
lation; 
‘‘(iii) the area was not designated as an urbanized 
area, as determined by the 1990 decennial census of 
population; or 
‘‘(iv) a portion of the area was not designated as 
an urbanized area, as determined by the 1990 decen-
nial census, and received assistance under section 5311 
in fiscal year 2002. 
‘‘(B) MAXIMUM AMOUNTS IN FISCAL YEAR 2005.—In fiscal 
year 2005—
‘‘(i) amounts made available to any urbanized area 
under clause (i) or (ii) of subparagraph (A) shall be 
not more than the amount apportioned in fiscal year 
2002 to the urbanized area with a population of less 
than 200,000, as determined in the 1990 decennial 
census of population; 
‘‘(ii) amounts made available to any urbanized area 
under subparagraph (A)(iii) shall be not more than 
the amount apportioned to the urbanized area under 
this section for fiscal year 2003; and 
‘‘(iii) each portion of any area not designated as 
an urbanized area, as determined by the 1990 decen-
nial census, and eligible to receive funds under 
subparagraph (A)(iv), shall receive an amount of funds 
to carry out this section that is not less than the
H. R. 3—427
amount the portion of the area received under section 
5311 for fiscal year 2002. 
‘‘(C) MAXIMUM AMOUNTS IN FISCAL YEAR 2006.—In fiscal 
year 2006—
‘‘(i) amounts made available to any urbanized area 
under clause (i) or (ii) of subparagraph (A) shall be 
not more than 50 percent of the amount apportioned 
in fiscal year 2002 to the urbanized area with a popu-
lation of less than 200,000, as determined in the 1990 
decennial census of population; 
‘‘(ii) amounts made available to any urbanized area 
under subparagraph (A)(iii) shall be not more than 
50 percent of the amount apportioned to the urbanized 
area under this section for fiscal year 2003; and 
‘‘(iii) each portion of any area not designated as 
an urbanized area, as determined by the 1990 decen-
nial census, and eligible to receive funds under 
subparagraph (A)(iv), shall receive an amount of funds 
to carry out this section that is not less than 50 percent 
of the amount the portion of the area received under 
section 5311 for fiscal year 2002. 
‘‘(D) MAXIMUM AMOUNTS IN FISCAL YEAR 2007.—In fiscal 
year 2007—
‘‘(i) amounts made available to any urbanized area 
under clause (i) or (ii) of subparagraph (A) shall be 
not more than 25 percent of the amount apportioned 
in fiscal year 2002 to the urbanized area with a popu-
lation of less than 200,000, as determined in the 1990 
decennial census of population; 
‘‘(ii) amounts made available to any urbanized area 
under subparagraph (A)(iii) shall be not more than 
25 percent of the amount apportioned to the urbanized 
area under this section for fiscal year 2003; and 
‘‘(iii) each portion of any area not designated as 
an urbanized area, as determined by the 1990 decen-
nial census, and eligible to receive funds under 
subparagraph (A)(iv), shall receive an amount of funds 
to carry out this section that is not less than 25 percent 
of the amount the portion of the area received under 
section 5311 in fiscal year 2002.’’; and 
(3) by striking paragraph (4). 
(d) GRANT RECIPIENT REQUIREMENTS.—Section 5307(d)(1) is 
amended—
(1) in subparagraph (A) by inserting ‘‘, including safety 
and security aspects of the program’’ after ‘‘program’’; 
(2) in subparagraph (E)—
(A) by striking ‘‘and’’ at the end of clause (ii); 
(B) by inserting ‘‘and’’ at the end of clause (iii); and 
(C) by adding at the end the following: 
‘‘(iv) will comply with sections 5323 and 5325;’’; 
(3) in subparagraph (H) by striking ‘‘sections 5301(a) and 
(d), 5303–5306, and 5310(a)–(d) of this title’’ and inserting 
‘‘section 5301(a), section 5301(d), and sections 5303 through 
5306’’; 
(4) in subparagraph (I) by striking ‘‘and’’ at the end; 
(5) by adding at the end the following:
H. R. 3—428
‘‘(K) in the case of a recipient for an urbanized area 
with a population of at least 200,000—
‘‘(i) will expend not less than 1 percent of the 
amount the recipient receives each fiscal year under 
this section for transit enhancements, as defined in 
section 5302(a); and 
‘‘(ii) will submit an annual report listing projects 
carried out in the preceding fiscal year with those 
funds; and’’. 
(e) GOVERNMENT’S
SHARE
OF
COSTS.—Section 5307(e) is 
amended to read as follows: 
‘‘(e) GOVERNMENT’S SHARE OF COSTS.—
‘‘(1) CAPITAL
PROJECTS.—A grant for a capital project 
(including associated capital maintenance items) under this 
section shall be for 80 percent of the net project cost of the 
project. The recipient may provide additional local matching 
amounts. 
‘‘(2) OPERATING EXPENSES.—A grant for operating expenses 
under this section may not exceed 50 percent of the net project 
cost of the project. 
‘‘(3) REMAINING
COSTS.—Subject to paragraph (4), the 
remainder of the net project cost shall be provided—
‘‘(A) in cash from non-Government sources other than 
revenues from providing public transportation services; 
‘‘(B) from revenues derived from the sale of advertising 
and concessions; 
‘‘(C) from an undistributed cash surplus, a replacement 
or depreciation cash fund or reserve, or new capital; and 
‘‘(D) from amounts received under a service agreement 
with a State or local social service agency or private social 
service organization. 
‘‘(4) USE OF CERTAIN FUNDS.—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 the remainder.’’. 
(f) UNDERTAKING PROJECTS IN ADVANCE.—Section 5307(g) is 
amended by striking paragraph (4). 
(g) RELATIONSHIP TO OTHER LAWS.—Section 5307(k) (as redesig-
nated by subsection (a)(2) of this section) is amended to read as 
follows: 
‘‘(k) RELATIONSHIP TO OTHER LAWS.—
‘‘(1) APPLICABLE PROVISIONS.—Sections 5301, 5302, 5303, 
5304, 5306, 5315(c), 5318, 5319, 5323, 5325, 5327, 5329, 5330, 
5331, 5332, 5333, and 5335 apply to this section and to any 
grant made under this section. 
‘‘(2) INAPPLICABLE PROVISIONS.—
‘‘(A) IN GENERAL.—Except as provided by this section, 
no other provision of this chapter applies to this section 
or to a grant made under this section. 
‘‘(B) TITLE 5.—The provision of assistance under this 
chapter shall not be construed as bringing within the 
application of chapter 15 of title 5 any nonsupervisory 
employee of a public transportation system (or any other 
agency or entity performing related functions) to which 
such chapter is otherwise inapplicable.’’. 
(h) TREATMENT.—Section 5307 is amended by adding at the 
end the following:
H. R. 3—429
‘‘(l) TREATMENT.—For the purposes of this section, the United 
States Virgin Islands shall be treated as an urbanized area, as 
defined in section 5302.’’. 
(i) CONTRACTED PARATRANSIT PILOT.—
(1) IN GENERAL.—Notwithstanding section 5302(a)(1)(I) of 
title 49, United States Code, for fiscal years 2005 through 
2009, a recipient of assistance under section 5307 of such 
title in urbanized areas with a population of 558,329 or 747,003 
according to the 2000 decennial census of population may use 
not more than 20 percent of such recipient’s annual formula 
apportionment under section 5307 of such title for the provision 
of nonfixed route paratransit services in accordance with section 
223 of the Americans with Disabilities Act of 1990 (42 U.S.C. 
12143), but only if the grant recipient is in compliance with 
applicable requirements of that Act, including both fixed route 
and demand responsive service and the service is acquired 
by contract. 
(2) REPORT.—Not later than January 1, 2009, the Secretary 
shall submit to the Committee on Transportation and Infra-
structure of the House of Representatives and the Committee 
on Banking, Housing, and Urban Affairs of the Senate a report 
on the implementation of this subsection and any recommenda-
tions of the Secretary regarding the application of this sub-
section. 
SEC. 3010. CLEAN FUELS GRANT PROGRAM. 
(a) IN GENERAL.—Section 5308 is amended to read as follows: 
‘‘§ 5308. Clean fuels grant program 
‘‘(a) DEFINITIONS.—In this section, the following definitions 
apply: 
‘‘(1) CLEAN FUEL BUS.—The term ‘clean fuel bus’ means 
a passenger vehicle used to provide public transportation that—
‘‘(A) is powered by—
‘‘(i) compressed natural gas; 
‘‘(ii) liquefied natural gas; 
‘‘(iii) biodiesel fuels; 
‘‘(iv) batteries; 
‘‘(v) alcohol-based fuels; 
‘‘(vi) hybrid electric; 
‘‘(vii) fuel cell; 
‘‘(viii) clean diesel, to the extent allowed under 
this section; or 
‘‘(ix) other low or zero emissions technology; and 
‘‘(B) the Administrator of the Environmental Protection 
Agency has certified sufficiently reduces harmful emissions. 
‘‘(2) ELIGIBLE PROJECT.—The term ‘eligible project’—
‘‘(A) means a project in a nonattainment or mainte-
nance area described in paragraph (4)(A) for—
‘‘(i) purchasing or leasing clean fuel buses, 
including buses that employ a lightweight composite 
primary structure; 
‘‘(ii) constructing or leasing clean fuel buses or 
electrical recharging facilities and related equipment 
for such buses; or
H. R. 3—430
‘‘(iii) constructing new or improving existing public 
transportation facilities to accommodate clean fuel 
buses; and 
‘‘(B) at the discretion of the Secretary, may include 
a project located in a nonattainment or maintenance area 
described in paragraph (4)(A) relating to clean fuel, bio-
diesel, hybrid electric, or zero emissions technology buses 
that exhibit equivalent or superior emissions reductions 
to existing clean fuel or hybrid electric technologies. 
‘‘(3) MAINTENANCE AREA.—The term ‘maintenance area’ has 
the meaning such term has under section 101 of title 23. 
‘‘(4) RECIPIENT.—
‘‘(A) IN GENERAL.—The term ‘recipient’ means a des-
ignated recipient (as defined in section 5307(a)(2)) for an 
area that, and a recipient for an urbanized area with 
a population of less than 200,000 that—
‘‘(i) is designated as a nonattainment area for ozone 
or carbon monoxide under section 107(d) of the Clean 
Air Act (42 U.S.C. 7407(d)); or 
‘‘(ii) is a maintenance area for ozone or carbon 
monoxide. 
‘‘(B) SMALLER URBANIZED AREAS.—In the case of an 
urbanized area with a population of less than 200,000, 
the State in which the area is located shall act as the 
recipient for the area under this section. 
‘‘(b) AUTHORITY.—The Secretary shall make grants in accord-
ance with this section to recipients to finance eligible projects. 
‘‘(c) CLEAN DIESEL BUSES.—Not more than 25 percent of the 
amount made available by or appropriated under section 5338 in 
each fiscal year to carry out this section may be made available 
to fund clean diesel buses. 
‘‘(d) GRANT REQUIREMENTS.—
‘‘(1) IN GENERAL.—A grant under this section shall be sub-
ject to the requirements of section 5307. 
‘‘(2) 
GOVERNMENT’S
SHARE
OF
COSTS
FOR
CERTAIN 
PROJECTS.—Section 5323(i) applies to projects carried out under 
this section. 
‘‘(e) AVAILABILITY OF FUNDS.—Any amount made available or 
appropriated under this section—
‘‘(1) shall remain available to a project for 2 years after 
the fiscal year for which the amount is made available or 
appropriated; and 
‘‘(2) that remains unobligated at the end of the period 
described in paragraph (1) shall be added to the amount made 
available in the following fiscal year.’’. 
(b) CONFORMING AMENDMENT.—The analysis for chapter 53 
is amended by striking the item relating to section 5308 and 
inserting the following:
‘‘5308. Clean fuels grant program.’’.
SEC. 3011. CAPITAL INVESTMENT GRANTS. 
(a) IN GENERAL.—Section 5309 is amended to read as follows: 
‘‘§ 5309. Capital investment grants 
‘‘(a) DEFINITIONS.—In this section, the following definitions 
apply:
H. R. 3—431
‘‘(1) ALTERNATIVES ANALYSIS.—The term ‘alternatives anal-
ysis’ means a study conducted as part of the transportation 
planning process required under sections 5303 and 5304, which 
includes—
‘‘(A) an assessment of a wide range of public transpor-
tation alternatives designed to address a transportation 
problem in a corridor or subarea; 
‘‘(B) sufficient information to enable the Secretary to 
make the findings of project justification and local financial 
commitment required under this section; 
‘‘(C) the selection of a locally preferred alternative; 
and 
‘‘(D) the adoption of the locally preferred alternative 
as part of the long-range transportation plan required 
under section 5303. 
‘‘(2) MAJOR NEW FIXED GUIDEWAY CAPITAL PROJECT.—The 
term ‘major new fixed guideway capital project’ means a new 
fixed guideway capital project for which the Federal assistance 
provided or to be provided under this section is $75,000,000 
or more. 
‘‘(3) NEW
FIXED
GUIDEWAY
CAPITAL
PROJECT.—The term 
‘new fixed guideway capital project’ means a minimum operable 
segment of a capital project for a new fixed guideway system 
or extension to an existing fixed guideway system. 
‘‘(b) GENERAL AUTHORITY.—The Secretary may make grants 
under this section to assist State and local governmental authorities 
in financing—
‘‘(1) new fixed guideway capital projects under subsections 
(d) and (e), including the acquisition of real property, the initial 
acquisition of rolling stock for the systems, the acquisition 
of rights-of-way, and relocation, for fixed guideway corridor 
development for projects in the advanced stages of alternatives 
analysis or preliminary engineering; 
‘‘(2) capital projects to modernize existing fixed guideway 
systems; 
‘‘(3) capital projects to replace, rehabilitate, and purchase 
buses and related equipment and to construct bus-related facili-
ties, including programs of bus and bus-related projects for 
assistance to subrecipients that are public agencies, private 
companies engaged in public transportation, or private non-
profit organizations; and 
‘‘(4) the development of corridors to support new fixed 
guideway capital projects under subsections (d) and (e), 
including 
protecting 
rights-of-way 
through 
acquisition, 
construction of dedicated bus and high occupancy vehicle lanes 
and park and ride lots, and other nonvehicular capital improve-
ments that the Secretary may decide would result in increased 
public transportation usage in the corridor. 
‘‘(c) GRANT REQUIREMENTS.—
‘‘(1) IN GENERAL.—The Secretary may not approve a grant 
for a project under this section unless the Secretary determines 
that—
‘‘(A) the project is part of an approved transportation 
plan and program of projects required under sections 5303, 
5304, and 5306; and 
‘‘(B) the applicant has, or will have—
H. R. 3—432
‘‘(i) the legal, financial, and technical capacity to 
carry out the project, including safety and security 
aspects of the project; 
‘‘(ii) satisfactory continuing control over the use 
of the equipment or facilities; and 
‘‘(iii) the capability and willingness to maintain 
the equipment or facilities. 
‘‘(2) CERTIFICATION.—An applicant that has submitted the 
certifications required under subparagraphs (A), (B), (C), and 
(H) of section 5307(d)(1) shall be deemed to have provided 
sufficient information upon which the Secretary may make 
the determinations required under this subsection. 
‘‘(3) GRANTEE REQUIREMENTS.—The Secretary shall require 
that any grant awarded under this section to a recipient be 
subject to all terms, conditions, requirements, and provisions 
that the Secretary determines to be necessary or appropriate 
for the purposes of this section, including requirements for 
the disposition of net increases in the value of real property 
resulting from the project assisted under this section. 
‘‘(d) MAJOR CAPITAL INVESTMENT GRANTS OF $75,000,000 OR 
MORE.—
‘‘(1) FULL FUNDING GRANT AGREEMENT.—
‘‘(A) IN GENERAL.—A major new fixed guideway capital 
project shall be carried out through a full funding grant 
agreement. 
‘‘(B) CRITERIA.—The Secretary shall enter into a full 
funding grant agreement, based on the evaluations and 
ratings required under this subsection, with each grantee 
receiving assistance for a major new fixed guideway capital 
project that—
‘‘(i) is authorized for final design and construction; 
and 
‘‘(ii) has been rated as medium, medium-high, or 
high, in accordance with paragraph (5)(B). 
‘‘(2) APPROVAL OF GRANTS.—The Secretary may approve 
a grant under this section for a major new fixed guideway 
capital project only if the Secretary, based upon evaluations 
and considerations set forth in paragraph (3), determines that 
the project is—
‘‘(A) based on the results of an alternatives analysis 
and preliminary engineering; 
‘‘(B) justified based on a comprehensive review of its 
mobility 
improvements, 
environmental 
benefits, 
cost 
effectiveness, operating efficiencies, economic development 
effects, and public transportation supportive land use poli-
cies and future patterns; and 
‘‘(C) supported by an acceptable degree of local financial 
commitment (including evidence of stable and dependable 
financing sources) to construct, maintain, and operate the 
system or extension, and maintain and operate the entire 
public transportation system without requiring a reduction 
in existing public transportation services or level of service 
to operate the proposed project. 
‘‘(3) EVALUATION OF PROJECT JUSTIFICATION.—In making 
the determinations under paragraph (2)(B) for a major capital 
investment grant, the Secretary shall analyze, evaluate, and 
consider—
H. R. 3—433
‘‘(A) the results of the alternatives analysis and 
preliminary engineering for the proposed project; 
‘‘(B) the reliability of the forecasting methods used 
to estimate costs and utilization made by the recipient 
and the contractors to the recipient; 
‘‘(C) the direct and indirect costs of relevant alter-
natives; 
‘‘(D) factors such as—
‘‘(i) congestion relief; 
‘‘(ii) improved mobility; 
‘‘(iii) air pollution; 
‘‘(iv) noise pollution; 
‘‘(v) energy consumption; and 
‘‘(vi) all associated ancillary and mitigation costs 
necessary to carry out each alternative analyzed; 
‘‘(E) reductions in local infrastructure costs and other 
benefits achieved through compact land use development, 
such as positive impacts on the capacity, utilization, or 
longevity of other surface transportation assets and facili-
ties; 
‘‘(F) the cost of suburban sprawl; 
‘‘(G) the degree to which the project increases the 
mobility of the public transportation dependent population 
or promotes economic development; 
‘‘(H) population density and current transit ridership 
in the transportation corridor; 
‘‘(I) the technical capability of the grant recipient to 
construct the project; 
‘‘(J) any adjustment to the project justification nec-
essary to reflect differences in local land, construction, and 
operating costs; and 
‘‘(K) other factors that the Secretary determines to 
be appropriate to carry out this subsection. 
‘‘(4) EVALUATION OF LOCAL FINANCIAL COMMITMENT.—
‘‘(A) IN GENERAL.—In evaluating a project under para-
graph (2)(C), the Secretary shall require that—
‘‘(i) the proposed project plan provides for the avail-
ability of contingency amounts that the Secretary 
determines to be reasonable to cover unanticipated 
cost increases; 
‘‘(ii) each proposed local source of capital and oper-
ating financing is stable, reliable, and available within 
the proposed project timetable; and 
‘‘(iii) local resources are available to recapitalize 
and operate the overall proposed public transportation 
system, including essential feeder bus and other serv-
ices necessary to achieve the projected ridership levels 
without requiring a reduction in existing public 
transportation services or level of service to operate 
the proposed project. 
‘‘(B) EVALUATION CRITERIA.—In assessing the stability, 
reliability, and availability of proposed sources of local 
financing under paragraph (2)(C), the Secretary shall con-
sider—
‘‘(i) the reliability of the forecasting methods used 
to estimate costs and utilization made by the recipient 
and the contractors to the recipient;
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‘‘(ii) existing grant commitments; 
‘‘(iii) the degree to which financing sources are 
dedicated to the proposed purposes; 
‘‘(iv) any debt obligation that exists, or is proposed 
by the recipient, for the proposed project or other public 
transportation purpose; and 
‘‘(v) the extent to which the project has a local 
financial commitment that exceeds the required non-
Federal share of the cost of the project. 
‘‘(C) CONSIDERATION OF FISCAL CAPACITY OF STATE AND 
LOCAL GOVERNMENTS.—If the Secretary gives priority to 
financing projects under this subsection that include more 
than the non-Federal share required under subsection (h), 
the Secretary shall give equal consideration to differences 
in the fiscal capacity of State and local governments. 
‘‘(5) PROJECT ADVANCEMENT AND RATINGS.—
‘‘(A) PROJECT
ADVANCEMENT.—A proposed project 
under this subsection shall not advance from alternatives 
analysis to preliminary engineering or from preliminary 
engineering to final design and construction unless the 
Secretary determines that the project meets the require-
ments of this section and there is a reasonable likelihood 
that the project will continue to meet such requirements. 
‘‘(B) RATINGS.—In making a determination under 
subparagraph (A), the Secretary shall evaluate and rate 
the project on a 5-point scale (high, medium-high, medium, 
medium-low, or low) based on the results of the alternatives 
analysis, the project justification criteria, and the degree 
of local financial commitment, as required under this sub-
section. In rating the projects, the Secretary shall provide, 
in addition to the overall project rating, individual ratings 
for each of the criteria established by regulation. 
‘‘(6) POLICY GUIDANCE.—
‘‘(A) PUBLICATION.—The Secretary shall publish policy 
guidance regarding the new fixed guideway capital project 
review and evaluation process and criteria—
‘‘(i) not later than 120 days after the date of enact-
ment of the Federal Public Transportation Act of 2005; 
and 
‘‘(ii) each time significant changes are made by 
the Secretary to the process and criteria, but not less 
frequently than once every 2 years. 
‘‘(B) PUBLIC COMMENT AND RESPONSE.—The Secretary 
shall—
‘‘(i) invite public comment to the policy guidance 
published under subparagraph (A); and 
‘‘(ii) publish a response to the comments received 
under clause (i). 
‘‘(e) CAPITAL INVESTMENT GRANTS LESS THAN $75,000,000.—
‘‘(1) IN GENERAL.—
‘‘(A) APPLICABILITY OF REQUIREMENTS.—Except as pro-
vided by subparagraph (B), a new fixed guideway capital 
project shall be subject to the requirements of this sub-
section if the Federal assistance provided or to be provided 
under this section for the project is less than $75,000,000 
and the total estimated net capital cost of the project 
is less than $250,000,000.