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(1) by striking ‘‘program of projects’’ and in-
serting ‘‘application describing projects selected from
those included in the State Transportation Improve-
ment Program’’;
(2) by striking ‘‘subsection (c) of this section’’
and inserting ‘‘section 5305(d) of this title’’;
(3) by striking subparagraphs (A) through (C)
and (E) through (F) and by redesignating subpara-
graphs (D), (G), (H), (I), and (J) as subparagraphs
(A) through (E), respectively;
(4) in redesignated subparagraph (B), by strik-
ing ‘‘subsection (e) of this section’’ and inserting
‘‘section 5328(a) of this title’’; and
(5) in redesignated subparagraph (C), by strik-
ing ‘‘, 5303–5306, and 5310 (a)–(d)’’ and inserting
‘‘and 5303–5306’’.
(f) Redesignated section 5307(e) is amended—
(1) in paragraph (1)(A)(i), by striking ‘‘sub-
section (d) of this section’’ and inserting ‘‘subsection
(c) of this section and sections 5323(j) and 5325 of
this title’’; and
(2) in paragraph (2), by striking ‘‘subsection
(d)’’ and inserting ‘‘subsection (c)’’.
(g) Redesignated section 5307(f) is amended by strik-
ing the third sentence.
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(h) Section 5307 is further amended by adding the
following new paragraph after redesignated paragraph (g):
‘‘(h) RELATIONSHIP
TO OTHER LAWS.—Sections
5302, 5318, 5323 (a)(1), (d), and (e), 5332, and 5333
of this title apply to this section and to a grant made
under this section. Except as provided in this section, no
other provision of this chapter applies to this section or
to a grant made under this section.’’.
(i) CONFORMING AMENDMENT.—The analysis for
chapter 53 is amended by striking the item related to sec-
tion 5307 and inserting the following:
‘‘5307. Urbanized area formula grants.’’.
SEC. 3009. MASS TRANSIT ACCOUNT BLOCK GRANTS.
(a) Title 49 is amended by striking section 5308.
(b) CONFORMING AMENDMENT.—The analysis for
chapter 53 is amended by striking the item related to sec-
tion 5308.
SEC. 3010. MAJOR CAPITAL INVESTMENTS.
(a) The heading for section 5309 is amended by strik-
ing ‘‘Discretionary grants and loans’’ and insert-
ing ‘‘Major capital investments’’.
(b) Section 5309 is amended by striking subsection
(a) and inserting the following:
‘‘(a) GENERAL AUTHORITY.—(1) The Secretary of
Transportation may make grants under this section to as-
sist State and local governmental authorities in financing
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capital projects for new fixed guideway systems and exten-
sions to existing fixed guideway systems.
‘‘(2) The Secretary of Transportation shall require
that a grant under this section shall be subject to all
terms, conditions, requirements, and provisions the Sec-
retary decides are necessary or appropriate for the pur-
poses of this section, including requirements for the dis-
position of net increases in value of real property resulting
from the project assisted under this section.
‘‘(3) Funds made available under this section to a
recipient under section 5311 of this title shall be adminis-
tered in accordance with the requirements of section 5311
of this title.’’
(c) Section 5309 is further amended—
(1) by striking subsections (b), (c), (h), (i), (j),
(k), (n), and (o);
(2) by redesignating subsections (d), (e), (f),
(g), and (l) as subsections (b) through (f), respec-
tively;
(3) by striking subsections (m)(1), (m)(2), and
(m)(4); and
(4) by redesignating subsection (m)(3) as sub-
section (g) and inserting the following new catchline:
‘‘REPORT TO CONGRESS.—’’.
(d) Redesignated section 5309(b) is amended—
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(1) by striking ‘‘Program of Projects’’ each
place it appears and inserting ‘‘State Transportation
Improvement Program’’ in each instance;
(2) by striking ‘‘(e) of this section’’ and insert-
ing ‘‘(c) of this section’’;
(3) by striking ‘‘or loan’’; and
(4) by striking ‘‘and that an applicant—’’ and
all that follows and inserting a period.
(e) The catchline for redesignated section 5309(c) is
amended by striking ‘‘and loans’’ .
(f) Redesignated section 5309(c) is amended—
(1) in subparagraph (1)(A), by striking ‘‘con-
tract’’ and inserting ‘‘grant agreement’’ and by
striking ‘‘subsection (g)’’ and inserting ‘‘subsection
(e)’’;
(2) in paragraph (2), by striking ‘‘or loan’’;
(3) in paragraph (3), by striking subparagraphs
(A) and (B) and redesignating subparagraphs (C)
through (E) as subparagraphs (A) through (C), re-
spectively;
(4) in redesignated subparagraph (3)(A), by
striking ‘‘existing’’;
(5) in paragraph (6)(B), by striking ‘‘decisions
under this subsection’’ and inserting ‘‘determina-
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tions under subparagraphs (2) (B) and (C) of this
subsection’’; and
(6) in paragraph (6)(C), by striking ‘‘com-
pletely’’ and inserting ‘‘substantially’’.
(g) Redesignated section 5309(d) is amended—
(1) in paragraph (1), by striking ‘‘or loan under
subsection (a)(5) of this section’’ and substituting
‘‘defined under section 5302(a)(1)(K) of this title’’;
and
(2) by striking subparagraphs (2) (A) and (B).
(h) Redesignated section 5309(e)(4) is amended by
striking ‘‘section 5338(a)’’ and inserting ‘‘section
5338(b)’’.
(i) Redesignated section 5309(f) is amended by strik-
ing ‘‘subsection (h) of this section’’ and inserting ‘‘section
5328(a) of this title’’.
(j) CONFORMING AMENDMENT.—The analysis for
chapter 53 is amended by striking the item related to sec-
tion 5309 and inserting the following:
‘‘5309. Major capital investments.’’.
SEC. 3011. FORMULA GRANTS FOR SPECIAL NEEDS OF EL-
DERLY INDIVIDUALS AND INDIVIDUALS WITH
DISABILITIES.
(a) The heading for section 5310 is amended by strik-
ing ‘‘Grants and loans’’ and substituting ‘‘Formula
grants’’.
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(d) The first sentence of section 5311(c) is amend-
ed—
(1) by striking ‘‘section 5338(a)’’ and inserting
‘‘section 5336(b)(3)’’; and
(2) by striking ‘‘as shown by the most recent’’
and all that follows, and inserting ‘‘as shown by the
latest available Government census.’’.
(e) The second sentence of section 5311(c) is amend-
ed by striking ‘‘2’’ and inserting ‘‘3’’.
(f) Section 5311(e) is amended—
(1) by inserting ‘‘for the transportation cooper-
ative research program under section 5313(a) of this
title,’’ after ‘‘under this section’’ ; and
(2) by inserting ‘‘training under section
5307(b)(1)(E) of this title,’’ after ‘‘development’’.
(g) The catchline for subsection 5311(f) is amended
by inserting ‘‘or rail’’ after ‘‘Bus’’.
(h) Section 5311(f) is amended by striking paragraph
(2).
(i) Section 5311(f)(1) is amended—
(1) by striking the paragraph designation and
the first sentence;
(2) by striking subparagraphs (B) and (C);
(3) by redesignating subparagraphs (A), (D),
and (E) as paragraphs (1) through (3), respectively;
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(4) in redesignated paragraph (1), by inserting
‘‘or rail’’ before ‘‘transportation’’;
(5) in redesignated paragraph (2), by inserting
‘‘bus or rail’’ before ‘‘operating grants’’; and
(6) in redesignated paragraph (3), by inserting
‘‘, rail, or air’’ after ‘‘bus’’ and before ‘‘carriers’’.
(j) Section 5311 is amended—
(1) by striking subsection (g);
(2) by redesignating subsections (h) and (i) as
subsections (g) and (h), respectively;
(3) by inserting a new subsection after redesig-
nated subsection (h) as follows:
‘‘(i) 
APPORTIONING
AND
TRANSFERRING
AMOUNTS.—A State apportionment is available to the
chief executive officer of the State for transfer, to supple-
ment amounts apportioned to the State under section
5310(b) or 5336(a)(1) of this title.’’
(k) CONFORMING AMENDMENT.—The analysis for
chapter 53 is amended by striking the item related to sec-
tion 5311 and inserting the following:
‘‘5311. Formula program for other than urbanized areas.’’.
SEC. 3013. NATIONAL RESEARCH PROGRAMS.
(a) Title 49 is amended by striking section 5312 and
by inserting after section 5311 the following new section:
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‘‘§ 5312. National research programs
‘‘(a) PROGRAM.—(1) The amounts made available
under section 5338(e) of this title are available to the Sec-
retary of Transportation for grants and contracts for the
purposes of sections 5313–5315, 5318, and 5322 of this
title, as the Secretary considers appropriate.
‘‘(2) Of the amounts made available under paragraph
(1) of this subsection, the Secretary shall make available
at least $2,000,000 to provide mass transportation-related
technical assistance, demonstration programs, research,
public education, and other activities the Secretary consid-
ers appropriate, to help mass transportation providers
comply with the Americans with Disabilities Act of 1990
(42 U.S.C. 12101 et seq.). To the extent practicable, the
Secretary shall carry out this paragraph through a con-
tract with a national nonprofit organization serving indi-
viduals with disabilities that has a demonstrated capacity
to carry out the activities.
‘‘(3) Not more than 25 percent of the amounts avail-
able under this subsection is available to the Secretary for
special demonstration initiatives, subject to terms the Sec-
retary considers consistent with this chapter, except that
section 5323(a)(1)(D) of this title applies to an oper-
ational grant financed in carrying out section 5314(a) of
this title. For a nonrenewable grant of not more than
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$100,000, the Secretary shall provide expedited proce-
dures on complying with the requirements of this chapter.
‘‘(4)(A) The Secretary may undertake a program of
mass transportation technology development, demonstra-
tion, and deployment in coordination with affected enti-
ties.
‘‘(B) The Secretary shall develop guidelines for cost
sharing in technology development projects financed under
this paragraph. The guidelines shall be flexible and reflect
the extent of technical risk, market risk, and anticipated
supplier benefits and payback periods.
‘‘(5) The Secretary may use amounts appropriated
under this subsection to supplement amounts available
under section 5313(a) of this title, as the Secretary con-
siders appropriate.
‘‘(b) GOVERNMENT SHARE.—When there would be a
clear and direct financial benefit to an entity under a
grant or contract financed under subsection (a) of this sec-
tion, the Secretary shall establish a United States Govern-
ment share consistent with the benefit.’’.
(b) CONFORMING AMENDMENT.—The analysis for
chapter 53 is amended by striking the item related to sec-
tion 5312 and inserting the following:
‘‘5312. National research programs.’’.
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SEC. 3014. TRANSIT COOPERATIVE RESEARCH PROGRAM.
(a) The heading for section 5313 is amended by strik-
ing ‘‘State planning and research programs’’ and inserting
‘‘Transit cooperative research program’’.
(b) Section 5313(a)(1) is amended—
(1) by striking ‘‘Fifty percent of the amounts
made available under section 5338(g)(3)’’ and in-
serting ‘‘Amounts made available under section
5312’’; and
(2) by adding at the end of the second sentence
‘‘, which includes one member from the Federal
Transit Administration’’.
(c) Section 5313 is amended by striking subsections
(b) and (c).
(d) CONFORMING AMENDMENT.—The analysis for
chapter 53 is amended by striking the item related to sec-
tion 5313 and inserting the following:
‘‘5313. Transit cooperative research program.’’.
SEC. 3015. RESEARCH, DEVELOPMENT, DEMONSTRATION,
AND TRAINING PROJECTS.
(a) Title 49 is amended by striking section 5314 and
by inserting after section 5313 the following new section:
‘‘§ 5314. Research, development, demonstration, and
training projects
‘‘(a) RESEARCH, DEVELOPMENT, DEMONSTRATION,
AND TECHNICAL ASSISTANCE PROJECTS.—(1) The Sec-
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retary of Transportation may undertake, or enter into
grants, contracts, cooperative agreements or other agree-
ments (including agreements with departments, agencies,
instrumentalities of the United States Government) for re-
search, development, testing, demonstration and technical
assistance projects related to mass transportation, includ-
ing introduction of new technology, deployment of innova-
tions, and the evaluation of such projects. Eligible projects
are those that the Secretary decides will help meet total
mass transportation needs by—
‘‘(A) improving service,
‘‘(B) enhancing safety or security,
‘‘(C) increasing capacity,
‘‘(D) reducing costs of services, equipment or
infrastructure,
‘‘(E) improving intermodal connections,
‘‘(F) reducing the need for transportation,
‘‘(G) overcoming institutional barriers,
‘‘(H) disseminating technical information,
‘‘(I) promoting applications of innovative tech-
nology, or
‘‘(J) advancing knowledge of mass transpor-
tation to promote social, economic or environmental
improvements, regulatory simplification, policy devel-
opment, or greater efficiency.
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‘‘(2) The Secretary may request and receive appro-
priate information from any source.
‘‘(3) This subsection does not limit the authority of
the Secretary under another law.
‘‘(b) RESEARCH, INVESTIGATIONS, AND TRAINING.—
(1) The Secretary of Transportation may make grants to
nonprofit institutions of higher learning—
‘‘(A) to conduct competent research and inves-
tigations into the theoretical or practical problems of
urban transportation; and
‘‘(B) to train individuals to conduct further re-
search or obtain employment in an organization that
plans, builds, operates, or manages a mass transpor-
tation system.
‘‘(2) Research and investigations under this sub-
section include—
‘‘(A) the design, implementation, operation, and
maintenance of mass transportation systems and,
roads and highways;
‘‘(B) the interrelationship between various
modes of urban and interurban transportation;
‘‘(C) the role of transportation planning in
overall community planning;
‘‘(D) public preferences in transportation;
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‘‘(E) the economic allocation of transportation
resources; and
‘‘(F) the legal, financial, engineering, environ-
mental and esthetic aspects of mass transportation.
‘‘(3) When making a grant under this subsection, the
Secretary shall give preference to an institution that
brings together knowledge and expertise in the various so-
cial science and technical disciplines related to mass trans-
portation problems.
‘‘(c) TRAINING
FELLOWSHIPS
AND
INNOVATIVE
TECHNIQUES
AND METHODS.—(1) The Secretary of
Transportation may make grants to States, local govern-
mental authorities, and operators of mass transportation
systems to provide fellowships to train personnel employed
in managerial, technical, and professional positions in the
mass transportation field.
‘‘(2) The Secretary of Transportation may make
grants to State and local governmental authorities for
projects that will use innovative techniques and methods
in planning, engineering, designing, implementing, operat-
ing, and maintaining mass transportation.
‘‘(3) 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 mass transportation in-
dustry. The recipient of the grant shall select an individual
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on the basis of demonstrated ability and for the contribu-
tion the individual reasonably can be expected to make to
an efficient mass transportation system. A grant for a fel-
lowship may not be more than the lesser of $24,000 or
75 percent of—
‘‘(A) tuition and other charges to the fellowship
recipient;
‘‘(B) additional costs incurred by the training
institution and billed to the grant recipient; and
‘‘(C) the regular salary of the fellowship recipi-
ent for the period of the fellowship to the extent the
salary is actually paid or reimbursed by the grant
recipient.
‘‘(d) JOINT PARTNERSHIP PROGRAM FOR DEPLOY-
MENT OF INNOVATION.—(1) In this subsection ‘‘consor-
tium’’ means one or more public or private organizations
located in the United States which provide mass transpor-
tation service to the public and one or more businesses,
including small and medium-sized businesses, incorporated
in a State, offering goods or services or willing to offer
goods and services to mass transportation operators. It
may include as additional members public or private re-
search organizations located in the United States, or State
or local governmental authorities.
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‘‘(2) The Secretary may, under terms and conditions
the Secretary prescribes, enter into grants, contracts, co-
operative agreements, and other agreements with consor-
tia selected in accordance with paragraph (4) of this sub-
section, to promote the early deployment of innovation in
mass transportation technology, services, management or
operational practices. The program will be carried out in
consultation with the transit industry by competitively se-
lected public/private partnerships which will share costs,
risks and rewards of early deployment of innovation with
broad applicability.
‘‘(3) The consortium shall provide at least 50 percent
of the costs of any joint partnership project. Any business,
organization, person, or governmental body may contrib-
ute funds to a joint partnership project.
‘‘(4) The Secretary shall periodically give public no-
tice of the technical areas for which joint partnerships are
solicited, required qualifications of consortia desiring to
participate, the method of selection and evaluation criteria
to be used in selecting participating consortia and
projects, and the process by which projects will be award-
ed.
‘‘(5) The Secretary may accept a portion of the reve-
nues resulting from sales of an innovation supported
under this section, to be credited to the Mass Transit Ac-
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count of the Highway Trust Fund and used for joint part-
nership projects.
‘‘(e) INTERNATIONAL MASS TRANSPORTATION PRO-
GRAM.—(1) The Secretary is authorized to engage in ac-
tivities to inform the United States domestic mass trans-
portation community about technological innovations
available in the international marketplace, and activities
that may afford domestic businesses the opportunity to be-
come globally competitive in the export of mass transpor-
tation products and services. These activities may in-
clude—
‘‘(A) development, monitoring, assessment, and
dissemination domestically of information about
world-wide mass transportation market opportuni-
ties;
‘‘(B) cooperation with foreign public-sector enti-
ties in research, development, demonstration, train-
ing, and other forms of technology transfer and ex-
change of experts and information;
‘‘(C) advocacy, in international mass transpor-
tation markets, of firms, products and services avail-
able from the United States;
‘‘(D) informing the international market about
the technical quality of mass transportation products
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and services through participation in seminars, expo-
sitions, and similar activities; and
‘‘(E) offering those Federal Transit Adminis-
tration technical services which cannot be readily ob-
tained from the United States private sector to for-
eign public authorities planning or undertaking mass
transportation projects if the costs of these services
will be recovered under the terms of each project,
unless the Secretary determines that it is in the na-
tional interest not to recover such costs.
‘‘(2) The Secretary may carry out the activities of
this section in cooperation with other United States Gov-
ernment agencies, State or local agencies, public and pri-
vate non-profit institutions, government laboratories, for-
eign governments or any other organization the Secretary
determines is appropriate.
‘‘(3) The funds available to carry out this section
shall include funds deposited in a special account with the
Secretary of the Treasury for such purposes by any co-
operating organization or person. The funds shall be avail-
able for promotional materials, travel, reception and rep-
resentation expenses necessary to carry; out the activities
authorized by this section. Reimbursements for services
provided under this section shall be credited to the appro-
priation concerned.’’.
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(b) CONFORMING AMENDMENT.—The analysis for
chapter 53 is amended by striking the item related to sec-
tion 5314 and inserting the following:
‘‘5314. Research, development, demonstration, and training projects.’’.
SEC. 3016. NATIONAL TRANSIT INSTITUTE.
(a) The heading of section 5315 is amended by strik-
ing ‘‘mass transportation’’ and inserting ‘‘transit’’.
(b) Section 5315(a) is amended by striking ‘‘national
mass transportation institute’’ and inserting ‘‘national
transit institute’’.
(c) ESTABLISHMENT AND DUTIES.—Section 5315(a)
is further amended—
(1) in paragraph (5), by inserting ‘‘and archi-
tectural design’’ after ‘‘engineering’’;
(2) in paragraph (7), by striking ‘‘carrying out’’
and inserting ‘‘delivering’’;
(3) in paragraph (11), by inserting ‘‘, construc-
tion management, insurance, and risk management’’
after ‘‘construction’’;
(4) in paragraph (13), by striking ‘‘and’’;
(5) in paragraph (14), by striking the period
and inserting ‘‘; or’’; and
(6) by adding after paragraph (14) the follow-
ing:
‘‘(15) innovative finance.’’.
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(d) CONFORMING AMENDMENT.—The analysis for
chapter 53 is amended by striking the item related to sec-
tion 5315 and inserting the following:
‘‘5315. National transit institute.’’.
SEC. 3017. UNIVERSITY RESEARCH INSTITUTES.
(a) Title 49 is amended by striking section 5316.
(b) CONFORMING AMENDMENT.—The analysis for
chapter 53 is amended by striking the item related to sec-
tion 5316.
SEC. 3018. TRANSPORTATION CENTERS.
(a) Title 49 is amended by striking section 5317.
(b) CONFORMING AMENDMENT.—The analysis for
chapter 53 is amended by striking the item related to sec-
tion 5317.
SEC. 3019. BUS TESTING FACILITY.
(a) Section 5318(b) is amended to read as follows:
‘‘(b) OPERATION
AND MAINTENANCE.—The Sec-
retary shall make a contract with or issue a grant or coop-
erative agreement to a qualified person or organization to
operate and maintain the facility. The contract, grant, or
cooperative agreement may provide for the testing of rail
cars and other mass transportation vehicles at the facil-
ity.’’.
(b) The first sentence of section 5318(d) is amend-
ed—
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(1) by striking ‘‘section 5338(j)(5)’’ and insert-
ing ‘‘section 5312’’; and
(2) by inserting ‘‘, grant, or cooperative agree-
ment’’ after ‘‘contract’’.
SEC. 3020. ADVANCE CONSTRUCTION AUTHORITY.
(a) Title 49 is amended by striking section 5319 and
by inserting after section 5318 the following new section:
‘‘§ 5319. Advance construction authority
‘‘(a) UNDERTAKING PROJECTS
IN ADVANCE.—(1)
The Secretary of Transportation may pay the Govern-
ment’s share of the net project cost to a State or local
governmental authority that carries out any part of a
project under this chapter without the aid of amounts of
the Government and according to all applicable procedures
and requirements if—
‘‘(A) the State or local governmental authority
applies for the payment;
‘‘(B) the Secretary approves the payment; and
‘‘(C) before carrying out the part of the project,
the Secretary approves the plans and specifications
for the part in the same way as for other projects
under this chapter.
‘‘(2) The cost of carrying out part of a project in-
cludes the amount of interest earned and payable on bonds
issued by the State or local governmental authority to the
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extent proceeds of the bonds are expended in carrying out
the part. However, the amount of interest under this para-
graph may not be more than the most favorable interest
terms reasonably available for the project at the time of
borrowing. The applicant shall certify, in a way satisfac-
tory to the Secretary of Transportation, that the applicant
has shown reasonable diligence in seeking the most favor-
able financial terms.
‘‘(b) PREAWARD AUTHORITY TO INCUR PROJECT
COSTS.—(1) The Secretary may allow a recipient of fund-
ing under this chapter to incur costs on a capital project
or planning project without prejudice to future Govern-
ment participation in the cost of the project when the re-
cipient—
‘‘(A) complies with the procedural and contrac-
tual requirements established by the Secretary;
‘‘(B) complies with the requirements established
by law to carry out the project; and
‘‘(C) does not prejudice the legal and adminis-
trative findings which the Secretary must make to
approve a project.
‘‘(2) Local funds expended by the recipient under this
chapter after the date of apportionment of the funds from
which the Government is participating in a project may
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be credited toward the recipient’s local match or reim-
bursement.’’.
(b) CONFORMING AMENDMENT.—The analysis of
chapter 53 is amended by striking the item related to sec-
tion 5319 and inserting the following:
‘‘5319.
Advance construction authority.’’.
SEC. 3021. ACCESS TO JOBS AND TRAINING.
(a) Title 49 is amended by striking section 5320 and
inserting after section 5319 the following new section:
‘‘§ 5320. Access to jobs and training
‘‘(a) GENERAL
AUTHORITY.—The Secretary of
Transportation may make grants under this subsection to
assist States, local governmental authorities, and private
non-profit organizations in financing transportation serv-
ices to transport economically disadvantaged persons to
jobs and activities related to employment. The Secretary
shall coordinate activities under this section with related
activities under programs of other United States agencies.
‘‘(b) GRANT CRITERIA.—In making grants under this
subsection, the Secretary shall consider the following:
‘‘(1) the severity of the welfare transportation
problem as measured by the percentage of the popu-
lation on welfare;
‘‘(2) the need for additional services to trans-
port economically disadvantaged persons to specified
jobs, training and other employment support serv-
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ices, and the extent to which proposed services will
address these needs;
‘‘(3) the existence of or willingness to establish
a mechanism to coordinate transportation and
human resource services planning;
‘‘(4) the applicant’s qualifications and perform-
ance under other welfare reform initiatives;
‘‘(5) the extent to which the local share dem-
onstrates a financial partnership with a human re-
source agency; and
‘‘(6) the applicant’s program proposal, which
must—
‘‘(A) address a comprehensive assessment
of access to work transportation needs and pos-
sible new service strategies;
‘‘(B) address the coordination of existing
service providers and possible new service strat-
egies;
‘‘(C) address the promotion of employer-
provided transportation services; and
‘‘(D) address long-term financing strate-
gies to support the program.
‘‘(c) ELIGIBLE PROJECTS.—The Secretary may make
grants for—
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‘‘(1) integrating transportation and welfare
planning, including collaborative planning to assess
employment needs and strategies;
‘‘(2) coordinating mass transportation providers
with human service transportation providers, and
with providers of employment support services;
‘‘(3) the operating and capital costs of service
start-up;
‘‘(4) promoting employer-provided transpor-
tation;
‘‘(5) developing financing strategies; and
‘‘(6) administrative costs.
‘‘(d) TECHNICAL ASSISTANCE.—The Secretary may
make grants or enter into cooperative agreements or con-
tracts for the provision of technical assistance to recipients
under this section and to provide for the evaluation of
projects funded under this section.
‘‘(e) GOVERNMENT’S SHARE OF COSTS.—Other than
projects funded under subsection (d) of this section, the
Government’s share of the costs for a project under this
section shall not exceed 50 percent of the net project cost.
The remainder shall be provided in cash from sources
other than revenues from providing mass transportation.
Notwithstanding any other provision of law, the funds ap-
propriated to any United States human services agency
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may be used toward the nongovernment share payable on
a project under this section.
‘‘(f) PLANNING REQUIREMENTS.—The requirements
of sections 5303–5306 of this title apply to grants made
under this subsection. The projects financed must be part
of a coordinated public transit/human services transpor-
tation planning process.
‘‘(g) GRANT REQUIREMENTS.—A grant under this
subsection is subject to terms and conditions as deter-
mined by the Secretary.
‘‘(h) AVAILABILITY OF AMOUNTS.—Amounts made
available under this subsection remain available for 3
years after the fiscal year in which the amount is made
available. An amount not obligated at the end of the 3-
year period, shall be added to the amount that may be
apportioned under section 5336(a) of this title in the next
fiscal year.’’.
(b) CONFORMING AMENDMENT.—The analysis for
chapter 53 is amended by striking the item related to sec-
tion 5320 and inserting the following:
‘‘5320. Access to jobs and training.’’.
SEC. 3022. CRIME PREVENTION AND SECURITY.
(a) Title 49 is amended by striking section 5321.
(b) CONFORMING AMENDMENT.—The analysis for
chapter 53 of such title is amended by striking the item
related to section 5321.
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SEC. 3023. GENERAL PROVISIONS ON ASSISTANCE.
(a) INTERESTS IN PROPERTY.—Section 5323(a)(1) is
amended—
(1) in subparagraph (A), by striking ‘‘program
of projects’’ and inserting ‘‘Transportation Improve-
ment Program’’; and
(2) in subparagraph (D), by inserting ‘‘under
5307 (except planning), 5309, 5311, 5313 (for oper-
ational activities only), 5314, and 5320 (except plan-
ning) of this title,’’ before ‘‘complies’’.
(b) The catchline for section 5323(b) is amended by
striking ‘‘Notice and public hearing’’ and inserting ‘‘So-
cial, economic, and environmental interests’’.
(c) SOCIAL, ECONOMIC, AND ENVIRONMENTAL IN-
TERESTS.—Section 5323(b) is amended by striking para-
graph (2) and inserting the following:
‘‘(2)(A) The Secretary of Transportation may
approve an application for financial assistance under
this chapter only if the Secretary makes written
findings, after reviewing the application and the re-
sults of any hearings held before a State or local
governmental authority under paragraph (b)(1) of
this section, that—
‘‘(i) an adequate opportunity to present
views was given to all parties with a significant
economic, social, or environmental interest;
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‘‘(ii) the preservation and enhancement of
the environment, and the interest of the com-
munity in which a project is located, were con-
sidered; and
‘‘(iii) no adverse environmental effect is
likely to result from the project, or no feasible
and prudent alternative to the effect exists and
all reasonable steps have been taken to mini-
mize the effect.
‘‘(B) A finding of the Secretary of Transpor-
tation under subparagraph (A) of this paragraph
shall be made a matter of public record.’’.
(d) The catchline for section 5323(d) is amended by
striking ‘‘Buying and operating buses’’ and inserting
‘‘Charter bus limitation’’.
(e) The first sentence of section 5323(d) is amended
by striking ‘‘this chapter’’ and inserting ‘‘section 5307,
5309, or 5311 of this title’’.
(f) Section 5323 is amended—
(1) by striking subsections (e), (i), (k), and (l);
and
(2) by redesignating subsections (f), (g), (h),
and (j) as subsections (e) through (h), respectively.
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(g) Redesignated section 5323(e) is amended by
striking ‘‘this chapter’’ and inserting ‘‘section 5307, 5309,
or 5311 of this title’’.
(h) The second sentence of redesignated section
5323(f) is amended—
(1) by striking ‘‘and (f)’’ and inserting ‘‘and
(e)’’; and
(2) by striking ‘‘subsection (f)(1)(C)’’ and in-
serting ‘‘subsection (e)(1)(C)’’.
(i) Redesignated section 5323(h) is amended by strik-
ing paragraph (7).
(j) Section 5323 is amended by adding after redesig-
nated paragraph (h) the following:
‘‘(i) SUBMISSION OF CERTIFICATIONS.—(1) A certifi-
cation required under this chapter and any additional cer-
tification or assurance required by law or regulation to
be submitted to the Secretary may be consolidated into
a single document to be submitted annually as part of a
grant application under this chapter. The Secretary shall
publish annually a list of all certifications required under
this chapter with the publication required under section
5336(g)(2) of this title.
‘‘(2) Section 1001 of title 18 applies to a certificate
or submission under this chapter. The Secretary may end
a grant under this chapter and seek reimbursement, di-
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rectly or by offsetting amounts available under section
5336 of this title, when a false or fraudulent statement
or related act within the meaning of section 1001 is made
in connection with a certification or submission.
‘‘(j) LEGAL, FINANCIAL, AND TECHNICAL CAPAC-
ITY.—A recipient of financial assistance under this chap-
ter must certify that it—
‘‘(1) has or will have the legal, financial, and
technical capacity to carry out the project, satisfac-
tory continuing control over the use of equipment or
facilities, and the capability to maintain the equip-
ment or facilities; and
‘‘(2) will maintain the equipment or facilities.
‘‘(k) PRIVATE ENTERPRISE PARTICIPATION.—(1) A
plan or program required by sections 5303–5306 of this
title shall encourage to the maximum extent feasible the
participation of private enterprise. If equipment or a facil-
ity already being used in an urban area is to be acquired
under this chapter, the program shall provide that it be
improved so that it will better serve the transportation
needs of the area.
‘‘(2) Sections 5303–5306 of this title do not author-
ize—
‘‘(A) a metropolitan planning organization to
impose a legal requirement on a transportation facil-
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ity, provider, or project not eligible under this chap-
ter or title 23; and
‘‘(B) intervention in the management of a
transportation authority.’’.
SEC. 3024. ACQUISITION OF REAL PROPERTY OWNED BY
THE GOVERNMENT.
(a) Title 49 is amended by striking section 5324 and
by inserting after section 5323 the following new section:
‘‘§ 5324. Acquisition of real property owned by the
Government
‘‘(a) FILING.—If the Secretary determines that any
part of the surplus lands or interests in lands owned by
the United States, other than military installations, is rea-
sonably necessary for a transit purpose or as a source of
materials for the construction or maintenance of a transit
facility adjacent to such lands or interests in lands, the
Secretary shall file with the Secretary of the Department
supervising the administration of such lands or interests
in lands a map showing the portion of such lands or inter-
ests in lands which it is desired to appropriate.
‘‘(b) CERTIFICATION AND TRANSFER.—If within a
period of six months after such filing, the Secretary of
such Department shall not have certified to the Secretary
that the proposed appropriation of such land or material
is inappropriate, then such land and materials may be ap-
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propriated and transferred to the transit provider, or its
nominee, for such purposes and subject to the conditions
so specified.
‘‘(c) DISPOSITION.—If at any time the need for any
such lands or materials for such purposes shall no longer
exist, notice of the fact shall be given by the transit pro-
vider to the Secretary, who shall request disposition in-
structions from the Secretary of the Department from
which the lands or materials have been appropriated.’’.
(b) CONFORMING AMENDMENTS.—The analysis for
chapter 53 is amended by striking the item related to sec-
tion 5324 and inserting the following:
‘‘5324. Acquisition of real property owned by the Government.’’.
SEC. 3025. CONTRACT REQUIREMENTS.
(a) Section 5325 is amended by striking subsections
(a) through (d) and inserting the following:
‘‘(a) COMPETITIVE PROCUREMENT METHODS.—Ex-
cept when inconsistent with this chapter, a recipient of
financial assistance under this chapter shall use competi-
tive procurement methods.
‘‘(b) COMPETITIVE NEGOTIATION.—(1) When the
sealed bid procurement process is not suitable for a pro-
curement, a recipient of financial assistance under this
chapter shall use the competitive negotiation procurement
process.
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‘‘(2) ARCHITECTURAL, ENGINEERING, AND DESIGN
CONTRACTS.—A contract for program management, con-
struction management, a feasibility study, and preliminary
engineering, design, architectural, engineering, surveying,
mapping, or related services for a project for which a
grant or loan is made under this chapter shall be awarded
in the same way as a contract for architectural and engi-
neering services is negotiated under title IX of the Federal
Property and Administrative Services Act of 1949 (40
U.S.C. 541 et seq.) or an equivalent qualifications-based
requirement of a State. This subsection does not apply to
the extent a State has adopted or adopts by law a formal
procedure for procuring those services.
‘‘(c) NONCOMPETITIVE PROCUREMENTS.—A contract
for which a grant is made under this chapter, if the con-
tract is not made through competitive methods, shall pro-
vide that records related to the contract shall be made
available to the Secretary of Transportation and the
Comptroller General, or an officer or employee of the Sec-
retary or Comptroller General, when conducting an audit
and inspection.’’.
SEC. 3026. SPECIAL PROCUREMENTS.
(a) Section 5326 is amended by striking subsection
(a) and inserting the following:
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‘‘(a) TURNKEY SYSTEM PROJECTS.—(1) In this sub-
section, ‘‘turnkey system project’’ means a project under
which a recipient makes a contract with a seller, firm, or
consortium of firms to acquire a mass transportation sys-
tem or an operable segment that meets specific perform-
ance criteria. The contract shall obligate the seller to de-
sign and build, with an option to finance and/or operate
for a period of time, the system or segment of the system,
or any combination of these.
‘‘(2) To advance new technologies and lower the cost
of a capital project for a new mass transportation system
or an operable segment of a new mass transportation sys-
tem, the Secretary of Transportation shall allow solicita-
tion for a turnkey system project to be financed under this
chapter based on a two-phased procurement process, qual-
ification followed by competitive selection, and where par-
ticipation of small- and medium-sized businesses is en-
couraged in joint ventures or consortia established with
large firms.’’.
(b) Section 5326 is amended by striking subsection
(c) and inserting the following:
‘‘(c) ACQUIRING ROLLING STOCK.—A recipient of fi-
nancial assistance of the United States Government under
this chapter may make a contract to expend that assist-
ance to acquire rolling stock—
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‘‘(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.
‘‘(d) PROCURING SPARE PARTS.—A recipient of a
grant under this chapter that is procuring spare parts may
make a contract directly with the original manufacturer
or supplier of the item to be replaced, without receiving
prior approval of the Secretary, if the recipient first cer-
tifies in writing to the Secretary that—
‘‘(1) the manufacturer or supplier is the only
source for the item; and
‘‘(2) the price of the item is no more than the
price similar customers pay for the item.
‘‘(e) EFFICIENT PROCUREMENT.—A recipient may
award a procurement contract under this chapter to other
than the lowest bidder when the award furthers an objec-
tive consistent with the purposes of this chapter, including
improved long-term operating efficiency and lower long-
term costs.’’.
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SEC. 3027. OVERSIGHT.
(a) The heading for section 5327 is amended by strik-
ing ‘‘Project management oversight’’ and inserting ‘‘Over-
sight’’.
(b) Paragraphs 5327(c) (1) and (2) are amended to
read as follows:
‘‘(c) 
LIMITATIONS
ON
USE
OF
AVAILABLE
AMOUNTS.—(1) The Secretary may use not more than .75
percent of amounts made available for a fiscal year to
carry out section 5307 or 5309 of this title, an interstate
transfer mass transportation project under section
103(e)(4) of title 23 as in effect on September 30, 1991,
or a project under the National Capital Transportation
Act of 1969 (Public Law 91–143, 83 Stat. 320) (the Act)
to make a contract to oversee the construction of a major
project under section 5307 or 5309 of this title, section
103(e)(4) of title 23, of the Act.
‘‘(2) The Secretary may use amounts available under
paragraph (1) of this subsection to contract with any per-
son to provide for safety, procurement, management, and
financial compliance reviews, and audits of a recipient of
amounts under this chapter and to provide technical as-
sistance to correct deficiencies identified in compliance re-
views and audits made under this section. Subsections (a),
(b), and (e) of this section do not apply to contracts under
this paragraph.’’.
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(c) CONFORMING AMENDMENT.—The analysis for
chapter 53 is amended by striking the item related to sec-
tion 5327 and inserting the following:
‘‘5327. Oversight.’’.
SEC. 3028. GOVERNMENT’S SHARE OF COSTS.
(a) Title 49 is amended by striking section 5328 and
by inserting after section 5327 the following new section:
‘‘§ 5328. Government’s share of costs
‘‘(a) CAPITAL PROJECTS.—
‘‘(1) 
GOVERNMENT’S
SHARE.—The 
United
States Government’s share of costs for capital
projects under sections 5307, 5309, 5310, and 5311
of this title is 80 percent of the net project cost of
a project, except that—
‘‘(A) the Government’s share for a bicycle
facility, under section 5302(a)(1)(O) of this
title, is 90 percent of the cost of the project;
and
‘‘(B) the Government’s share of the costs
for a capital project that involves acquiring ve-
hicle-related equipment required by the Clean
Air Act (42 U.S.C. 7401 et seq.) or the Ameri-
cans with Disabilities Act of 1990 (42 U.S.C.
12101 et seq.) is 90 percent of the net project
cost of the equipment that is attributable to
complying with those Acts. The Secretary of