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SEC. 3039. NATIONAL FUEL CELL BUS TECHNOLOGY DE-
VELOPMENT PROGRAM. 
(a) ESTABLISHMENT.—The Secretary shall establish 
a national fuel cell bus technology development program 
(in this section referred to as the ‘program’) to facilitate 
the development of commercially viable fuel cell bus tech-
nology and related infrastructure. 
(b) GENERAL
AUTHORITY.—The Secretary may 
enter into grants, contracts, and cooperative agreements 
with no more than 4 geographically diverse nonprofit orga-
nizations and recipients under chapter 53 of title 49, 
United States Code, to conduct fuel cell bus technology 
and infrastructure projects under the program. 
(c) GRANT CRITERIA.—In selecting applicants for 
grants under the program, the Secretary shall consider the 
applicant’s—
(1) ability to contribute significantly to fur-
thering fuel cell technology as it relates to transit 
bus operations, including hydrogen production, en-
ergy storage, fuel cell technologies, vehicle systems 
integration, and power electronics technologies; 
(2) financing plan and cost share potential; 
(3) fuel cell technology to ensure that the pro-
gram advances different fuel cell technologies, in-
cluding hydrogen-fueled and methanol-powered liq-
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uid-fueled fuel cell technologies, that may be viable 
for public transportation systems; and 
(4) other criteria that the Secretary determines 
are necessary to carry out the program. 
(d) COMPETITIVE GRANT SELECTION.—The Sec-
retary shall conduct a national solicitation for applications 
for grants under the program. Grant recipients shall be 
selected on a competitive basis. The Secretary shall give 
priority consideration to applicants that have successfully 
managed advanced transportation technology projects, in-
cluding projects related to hydrogen and fuel cell public 
transportation operations for a period of not less than 10 
years. 
(e) FEDERAL SHARE.—The Federal share of costs of 
the program shall be provided from funds made available 
to carry out this section. The Federal share of the cost 
of a project carried out under the program shall not exceed 
50 percent of such cost. 
(f) GRANT REQUIREMENTS.—A grant under this sec-
tion shall be subject to—
(1) all terms and conditions applicable to a 
grant made under section 5309 of title 49, United 
States Code; and 
(2) such other terms and conditions as are de-
termined by the Secretary.
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SEC. 3040. HIGH-INTENSITY SMALL-URBANIZED AREA FOR-
MULA GRANT PROGRAM. 
(a) DEFINITIONS.—In this section, the following defi-
nitions apply: 
(1) ELIGIBLE AREA.—The term ‘eligible area’ 
means an urbanized area with a population of less 
than 200,000 that meets or exceeds in one or more 
performance categories the industry average for all 
urbanized areas with a population of at least 
200,000 but not more than 999,999, as determined 
by the Secretary in accordance with subsection 
(c)(2). 
(2) PERFORMANCE CATEGORY.—The term ‘per-
formance category’ means each of the following: 
(A) Passenger miles traveled per vehicle 
revenue mile. 
(B) Passenger miles traveled per vehicle 
revenue hour. 
(C) Vehicle revenue miles per capita. 
(D) Vehicle revenue hours per capita. 
(E) Passenger miles traveled per capita. 
(F) Passengers per capita. 
(b) GENERAL AUTHORITY.—In order to address the 
needs of small urbanized areas with unusually high levels 
of public transportation service, the Secretary shall make 
capital and operating grants under this section to eligible
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recipients described in subsection (d) for use in eligible 
areas. 
(c) APPORTIONMENT.—
(1) APPORTIONMENT FORMULA.—Funds made 
available for grants under this section in a fiscal 
year shall be apportioned among eligible areas in the 
ratio that—
(A) the number of performance categories 
for which each eligible area meets or exceeds 
the industry average in urbanized areas with a 
population of at least 200,000 but not more 
than 999,999; bears to 
(B) the aggregate number of performance 
categories for which all eligible areas meet or 
exceed the industry average in urbanized areas 
with a population of at least 200,000 but not 
more than 999,999. 
(2) DATA USED IN FORMULA.—The Secretary 
shall calculate apportionments under this subsection 
for a fiscal year using data from the national transit 
database used to calculate apportionments for that 
fiscal year under section 5336 of title 49, United 
States Code. 
(d) ELIGIBLE RECIPIENT.—Grant amounts appor-
tioned to an eligible area under this section shall be made
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available to a public transportation agency or other gov-
ernmental entity in the eligible area for obligation in the 
eligible area. 
(e) GOVERNMENT’S SHARE OF COSTS.—
(1) CAPITAL GRANTS.—A grant for a capital 
project under this section (including associated cap-
ital maintenance items) shall be for 80 percent of 
the net capital costs of the project, as determined by 
the Secretary. The recipient may provide additional 
local matching amounts for such projects. 
(2) OPERATING GRANTS.—A grant 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 may be provided from an undistributed 
cash surplus, a replacement or depreciation cash 
fund or reserve, or new capital. 
(f) PERIOD OF AVAILABILITY.—Funds apportioned 
under this section to an eligible area shall remain available 
for obligation in that eligible area for a period of 3 years 
after the last day of the fiscal year for which the funds 
are apportioned. Any amounts so apportioned that remain 
unobligated at the end of that period shall be added to