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regarding measures to be taken to reduce the number of 
such accidents and the resulting fatalities and injuries. 
SEC. 2012. DRIVER PERFORMANCE STUDY. 
(a) IN GENERAL.—Using funds made available to 
carry out section 403 of title 23, United States Code, for 
fiscal year 2005, the Secretary shall make $1,000,000 
available to conduct a study on the risks associated with 
glare to oncoming drivers, including increased risks to 
drivers on 2-lane highways, increased risks to drivers over 
the age of 50, and the overall effects of glare on driver 
performance. 
(b) REPORT.—Not later than 18 months after the 
date of enactment of this Act, the Secretary shall transmit 
to the Committee on Transportation and Infrastructure 
of the House of Representatives and the Committee on 
Commerce, Science, and Transportation of the Senate a 
report on the results of the study and any recommenda-
tions regarding measures to reduce the risks associated 
with glare to oncoming drivers. 
SEC. 2013. DRUG IMPAIRED DRIVING ENFORCEMENT. 
(a) SHORT TITLE.—This section may be cited as the 
‘‘Drug Impaired Driving Research and Prevention Act’’. 
(b) DEFINITIONS.—In this section, the following defi-
nitions apply:
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(1) 
CONTROLLED
SUBSTANCE.—The 
term 
‘‘controlled substance’’ includes substances listed in 
schedules I through V of section 112(e) of the Con-
trolled Substances Act (21 U.S.C. 812(e)). 
(2) DRUG
RECOGNITION
EXPERT.—The term 
‘‘drug recognition expert’’ means an individual 
trained in a specific evaluation procedure that en-
ables the person to determine whether an individual 
is under the influence of drugs and then to deter-
mine the type of drug causing the observable impair-
ment. 
(c) MODEL STATUTE.—
(1) IN GENERAL.—The Secretary shall develop 
a model statute for States relating to drug impaired 
driving. 
(2) CONTENTS.—The model statute shall in-
clude—
(A) threshold levels of impairment for a 
controlled substance; 
(B) practicable methods for detecting the 
presence of controlled substances; and 
(C) penalties for drug impaired driving. 
(3) RECOMMENDATIONS.—The model statute 
shall be based on the recommendations contained in 
the report submitted under subsection (f).
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(4) DATE.—The model statute should be pro-
vided to States no later than 1 year after submission 
of the report contained in subsection (f). 
(d) RESEARCH AND DEVELOPMENT.—Section 403(b) 
of title 23, United States Code, is amended by adding at 
the end the following: 
‘‘(5) New technology to detect drug use. 
‘‘(6) Research and development to improve test-
ing technology, including toxicology lab resources 
and field test mechanisms to enable States to proc-
ess toxicology evidence in a more timely manner. 
‘‘(7) Determining per se unlawful impairment 
levels for controlled substances and the compound 
effects of alcohol and controlled substances on im-
pairment to facilitate enforcement of per se drug im-
paired driving laws. Research under this paragraph 
shall be carried out in collaboration with the Na-
tional Institute on Drug Abuse of the National Insti-
tutes of Health.’’. 
(e) DUTIES.—The Administrator of the National 
Highway Traffic Safety Administration shall—
(1) advise and coordinate with other Federal 
agencies on how to address the problem of driving 
under the influence of an illegal drug; and
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(2) conduct research on the prevention, detec-
tion, and prosecution of driving under the influence 
of an illegal drug. 
(f) REPORT.—
(1) IN GENERAL.—Not later than 18 months 
after the date of enactment of this Act, the National 
Institutes of Health shall submit to the Secretary 
and to Congress a report on the problem of drug-
impaired driving. 
(2) CONTENTS.—The report shall include—
(A) a description of the extent of the prob-
lem of driving under the influence of an illegal 
drug in each State and any available informa-
tion relating thereto, including a description of 
any laws relating to the problem of driving 
under the influence of an illegal drug; 
(B) an assessment of the status of drug 
impaired driving laws in the United States; 
(C) a review of the compound effects of al-
cohol and controlled substances on impairment; 
(D) the role of drugs as a causal factor in 
traffic crashes; 
(E) an assessment of new research and 
technologies developed in the area of drug de-
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tection for drug-impaired driving enforcement, 
including noninvasive methods of detection; 
(F) recommendations for addressing the 
problem of driving under the influence of an il-
legal drug, including recommendations on levels 
of impairment; 
(G) a State-by-State review of drug rec-
ognition expert programs and recommendations 
for enhancing those programs through the 
training and utilization of drug recognition ex-
perts; and 
(H) recommendations for developing a 
model statute relating to drug-impaired driving. 
(g) FUNDING.—Out of amounts appropriated to 
carry out section 403 of title 23, United States Code, for 
fiscal years 2006 through 2009, the Secretary shall use 
$1,200,000 per fiscal year to carry out this section. 
SEC. 2014. TRANSPORTATION OF SCHOOLCHILDREN. 
The third sentence of section 402(a) of title 23, 
United States Code, is amended—
(1) by striking ‘‘and’’ before ‘‘(6)’’; and 
(2) by inserting before the period at the end the 
following: ‘‘, and (7) to prevent use of any motor ve-
hicle designed to transport between 9 and 15 pas-
sengers (including the driver) for the transportation
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of children to and from school and events related to 
school’’. 
SEC. 2015. RURAL STATE EMERGENCY MEDICAL SERVICES 
OPTIMIZATION PILOT PROGRAM. 
(a) IN GENERAL.—From funds made available to 
carry out section 403 of title 23, United States Code, for 
fiscal year 2006, the Secretary shall make $1,000,000 
available to conduct a pilot program for optimizing Emer-
gency Medical Services (EMS) in a rural State. 
(b) COLLECTING DATA.—The pilot program shall 
focus on collecting geo-coded data for highway accidents 
and resulting injuries, analyzing data to develop injury 
patterns and distributions, and improving placement and 
management of EMS resources and personnel. 
(c) SELECTION.—The Secretary shall enter into an 
agreement with the State of Alaska to conduct the pilot 
program. 
(d) REPORT.—Not later than 12 months after the 
completion of the pilot program, the Secretary shall trans-
mit to the Committee on Transportation and Infrastruc-
ture of the House of Representatives and the Committee 
on Commerce, Science, and Transportation of the Senate 
a report on the results of the pilot program and rec-
ommendations for application to other rural States.
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SEC. 2016. STATE APPORTIONMENTS. 
Section 402(c) of the title 23, United States Code, 
is amended by striking ‘‘The annual apportionment to 
each State shall not be less than one-half of 1 per centum’’ 
and insert ‘‘The annual apportionment to each State shall 
not be less than three-quarters of 1 percent’’. 
SEC. 2017. SAFE INTERSECTIONS. 
(a) IN GENERAL.—Chapter 2 of title 18, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘§ 39. Traffic signal preemption transmitters 
‘‘(a) OFFENSES.—
‘‘(1) SALE.—A person who knowingly sells a 
traffic signal preemption transmitter in or affecting 
interstate or foreign commerce to a person who is 
not acting on behalf of a public agency or private 
corporation authorized by law to provide fire protec-
tion, law enforcement, emergency medical services, 
transit services, maintenance, or other services for a 
Federal, State, or local government entity, shall, 
notwithstanding section 3571(b) of title 18, United 
States Code, be fined according to this title, impris-
oned not more than 1 year, or both. 
‘‘(2) USE.—A person who makes unauthorized 
use of a traffic signal preemption transmitter in or 
affecting interstate or foreign commerce shall be
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fined according to this title, imprisoned not more 
than 6 months, or both. 
‘‘(b) DEFINITIONS.—In this section, the following 
definitions apply: 
‘‘(1) TRAFFIC
SIGNAL
PREEMPTION
TRANS-
MITTER.—The term ‘traffic signal preemption trans-
mitter’ means any mechanism that can change or 
alter a traffic signal’s phase time or sequence. 
‘‘(2) UNAUTHORIZED
USE.—The term ‘unau-
thorized use’ means use of a traffic signal preemp-
tion transmitter by a person who is not acting on be-
half of a public agency or private corporation au-
thorized by law to provide fire protection, law en-
forcement, emergency medical services, transit serv-
ices, maintenance, or other services for a Federal, 
State, or local government entity. The term ‘unau-
thorized use’ does not apply to use of a traffic signal 
preemption transmitter for classroom or instruc-
tional purposes.’’. 
(b) TABLE OF SECTIONS.—The table of sections for 
chapter 2 of title 18, United States Code, is amended by 
adding at the end the following:
‘‘39. Traffic signal preemption transmitters.’’.
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TITLE III—FEDERAL TRANSIT 
ADMINISTRATION PROGRAMS 
SEC. 3001. SHORT TITLE; AMENDMENTS TO TITLE 49, 
UNITED STATES CODE. 
(a) SHORT TITLE.—This title may be cited as the 
‘‘Federal Public Transportation Act of 2005’’. 
(b) AMENDMENTS TO TITLE 49, UNITED STATES 
CODE.—Except as otherwise specifically provided, when-
ever in this title an amendment or repeal is expressed in 
terms of an amendment to, or repeal of, a section or other 
provision of law, the reference shall be considered to be 
made to a section or other provision of title 49, United 
States Code. 
SEC. 3002. POLICIES, FINDINGS, AND PURPOSES. 
(a) IN GENERAL.—Section 5301(a) is amended to 
read as follows: 
‘‘(a) DEVELOPMENT AND REVITALIZATION OF PUB-
LIC TRANSPORTATION SYSTEMS.—It is in the interest of 
the United States to foster the development and revitaliza-
tion of public transportation systems that—
‘‘(1) maximize the safe, secure, and efficient 
mobility of individuals; 
‘‘(2) minimize environmental impacts; and 
‘‘(3) minimize transportation-related fuel con-
sumption and reliance on foreign oil.’’.
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(b) 
PRESERVING
THE
ENVIRONMENT.—Section 
5301(e) is amended—
(1) by striking ‘‘an urban’’ and inserting ‘‘a’’; 
and 
(2) by striking ‘‘under sections 5309 and 5310 
of this title’’. 
(c) GENERAL PURPOSES.—Section 5301(f) is amend-
ed—
(1) in paragraph (1)—
(A) by striking ‘‘mass’’ the first place it 
appears and inserting ‘‘public’’; and 
(B) by striking ‘‘public and private mass 
transportation companies’’ and inserting ‘‘both 
public transportation companies and private 
companies engaged in public transportation’’; 
(2) in paragraph (2)—
(A) by striking ‘‘urban mass’’ and insert-
ing ‘‘public’’; and 
(B) by striking ‘‘public and private mass 
transportation companies’’ and inserting ‘‘both 
public transportation companies and private 
companies engaged in public transportation’’; 
(3) in paragraph (3)—
(A) by striking ‘‘urban mass’’ and insert-
ing ‘‘public’’; and
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(B) by striking ‘‘public or private mass 
transportation companies’’ and inserting ‘‘pub-
lic transportation companies or private compa-
nies engaged in public transportation’’; and 
(4) in paragraph (5) by striking ‘‘urban mass’’ 
and inserting ‘‘public’’. 
SEC. 3003. DEFINITIONS. 
(a) LEAD-IN.—Section 5302(a) is amended in the 
matter preceding paragraph (1) by striking ‘‘In this chap-
ter’’ and inserting ‘‘Except as otherwise specifically pro-
vided, in this chapter’’. 
(b) CAPITAL
PROJECT.—Section 5302(a)(1) is 
amended—
(1) in subparagraph (G) by inserting ‘‘construc-
tion, renovation, and improvement of intercity bus 
stations and terminals,’’ before ‘‘and the renovation 
and improvement of historic transportation facili-
ties,’’; 
(2) in subparagraph (G)(ii) by inserting ‘‘(other 
than an intercity bus station or terminal)’’ after 
‘‘commercial revenue-producing facility’’; 
(3) by striking ‘‘or’’ at the end of subparagraph 
(H); 
(4) by striking the period at the end of sub-
paragraph (I) and inserting a semicolon; and
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(5) by adding at the end the following: 
‘‘(J) crime prevention and security—
‘‘(i) including—
‘‘(I) projects to refine and de-
velop security and emergency response 
plans; 
‘‘(II) projects aimed at detecting 
chemical and biological agents in pub-
lic transportation; 
‘‘(III) the conduct of emergency 
response drills with public transpor-
tation agencies and local first re-
sponse agencies; and 
‘‘(IV) security training for public 
transportation employees; but 
‘‘(ii) excluding all expenses related to 
operations, other than such expenses in-
curred in conducting activities described in 
subclauses (III) and (IV); 
‘‘(K) establishment of a debt service re-
serve made up of deposits with a bondholders’ 
trustee in a noninterest bearing account for the 
purpose of ensuring timely payment of principal 
and interest on bonds issued by a grant recipi-
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ent for purposes of financing an eligible project 
under this chapter; or 
‘‘(L) mobility management—
‘‘(i) consisting of short-range planning 
and management activities and projects for 
improving 
coordination 
among 
public 
transportation and other transportation 
service providers carried out by a recipient 
or subrecipient through an agreement en-
tered into with a person, including a gov-
ernmental entity, under this chapter (other 
than section 5309); but 
‘‘(ii) excluding operating public trans-
portation services.’’. 
(c) INDIVIDUAL
WITH
A
DISABILITY.—Section 
5302(a)(5) is amended—
(1) by striking ‘‘HANDICAPPED INDIVIDUAL’’ in 
the heading and inserting ‘‘INDIVIDUAL WITH A DIS-
ABILITY’’; and 
(2) by striking ‘‘handicapped individual’’ and 
inserting ‘‘individual with a disability’’. 
(d) MASS TRANSPORTATION.—Section 5302(a)(7) is 
amended to read as follows: 
‘‘(7) MASS TRANSPORTATION.—The term ‘mass 
transportation’ means public transportation.’’.
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(e) PUBLIC TRANSPORTATION.—Section 5302(a)(10) 
is amended to read as follows: 
‘‘(10) PUBLIC
TRANSPORTATION.—The term 
‘public transportation’ means transportation by a 
conveyance that provides regular and continuing 
general or special transportation to the public, but 
does not include schoolbus, charter, or sightseeing 
transportation.’’. 
(f) URBANIZED
AREA.—Section 5302(a)(17) is 
amended to read as follows: 
‘‘(17) URBANIZED AREA.—The term ‘urbanized 
area’ means an area encompassing a population of 
at least 50,000 people that has been defined and 
designated in the latest decennial census as an ur-
banized area by the Secretary of Commerce.’’. 
(g) AUTHORITY TO MODIFY DEFINITION.—Section 
5302(b) is amended—
(1) by striking ‘‘HANDICAPPED INDIVIDUAL’’ in 
the heading and inserting ‘‘INDIVIDUAL WITH
A 
DISABILITY’’; and 
(2) by striking ‘‘handicapped individual’’ and 
inserting ‘‘individual with a disability’’. 
SEC. 3004. METROPOLITAN PLANNING. 
Section 5303 is amended to read as follows:
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‘‘§ 5303. Metropolitan planning 
‘‘(a) IN GENERAL.—Grants made under sections 
5307, 5308, 5309, 5310, 5311, 5316, and 5317 shall be 
carried out in accordance with the metropolitan planning 
provisions of chapter 52. 
‘‘(b) CERTIFICATION.—
‘‘(1) IN GENERAL.—The Secretary shall ensure 
and certify that each metropolitan planning organi-
zation in each transportation management area is 
carrying out its responsibilities under applicable laws 
of the United States. The Secretary may make the 
certification only if the organization is complying 
with chapter 52 and other applicable requirements 
of laws of the United States and the organization 
and chief executive officer have approved a transpor-
tation improvement program for the area. 
‘‘(2) LIMITATION
ON
WITHHOLDING
CERTIFI-
CATION.—The Secretary may not withhold certifi-
cation based on the policies and criteria a metropoli-
tan planning organization or mass transportation 
grant recipient establishes under section 5306(a) for 
deciding the feasibility of private enterprise partici-
pation.’’. 
SEC. 3005. STATEWIDE PLANNING. 
(a) IN GENERAL.—Section 5304 is amended to read 
as follows:
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‘‘§ 5304. Statewide planning 
‘‘Grants made under sections 5307, 5308, 5309, 
5310, 5311, 5316, and 5317 shall be carried out in ac-
cordance with the statewide planning provisions of chapter 
52.’’. 
(b) CONFORMING AMENDMENT.—The analysis for 
chapter 53 is amended by striking the item relating to 
section 5304 and inserting the following:
‘‘5304. Statewide planning.’’.
SEC. 3006. 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) ASSISTANCE.—Under criteria to be estab-
lished by the Secretary, the Secretary may provide 
assistance for—
‘‘(A) the development of transportation 
plans and programs; 
‘‘(B) planning, engineering, designing, and 
evaluating a public transportation project; and 
‘‘(C) for other technical studies.
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‘‘(2) 
GRANTS, 
AGREEMENTS, 
AND
CON-
TRACTS.—The Secretary may provide assistance 
under paragraph (1)—
‘‘(A) by making grants to States, authori-
ties of States, metropolitan planning organiza-
tions, and local governmental authorities; or 
‘‘(B) by making agreements with other de-
partments, agencies, and instrumentalities of 
the Government. 
‘‘(3) ELIGIBLE ACTIVITIES.—Activities eligible 
for assistance under paragraph (1) include the fol-
lowing: 
‘‘(A) Studies related to management, plan-
ning, operations, capital requirements, and eco-
nomic feasibility. 
‘‘(B) 
Evaluating 
previously 
financed 
projects. 
‘‘(C) Peer reviews and exchanges of tech-
nical data, information, assistance, and related 
activities in support of planning and environ-
mental analyses among metropolitan planning 
organizations and other transportation plan-
ners. 
‘‘(D) Other similar and related activities 
preliminary to and in preparation for con-
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structing, acquiring, or improving the operation 
of facilities and equipment. 
‘‘(c) PURPOSE.—To the extent practicable, the Sec-
retary shall ensure that amounts appropriated or made 
available under section 5338 to carry out this section and 
sections 5303 and 5304 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 avail-
able decennial census of population; bears 
to 
‘‘(ii) the total population of urbanized 
areas in all States, as shown by that cen-
sus.
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‘‘(B) MINIMUM
APPORTIONMENT.—Not-
withstanding 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 appor-
tioned to a State under paragraph (1) shall be made 
available within 30 days after allocation to metro-
politan planning organizations in the State des-
ignated under this section 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 metropolitan 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 organi-
zations.
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‘‘(B) FORMULA.—The Secretary shall ap-
portion amounts referred to in subparagraph 
(A) under a formula that reflects the additional 
cost of carrying out planning, programming, 
and project selection responsibilities under sec-
tions 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 sections 5303 
through 5306, 5312, 5315, and 5322 in the 
ratio that—
‘‘(i) the population of urbanized areas 
in each State, as shown by the latest avail-
able decennial census; bears to 
‘‘(ii) the population of urbanized areas 
in all States, as shown by that census. 
‘‘(B) MINIMUM
APPORTIONMENT.—Not-
withstanding subparagraph (A), a State may 
not receive less than 0.5 percent of the amount 
apportioned under this paragraph.
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‘‘(2) SUPPLEMENTAL AMOUNTS.—A State, as 
the State considers 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 Gov-
ernment’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 2004 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) AVAILABILITY OF FUNDS.—Funds apportioned 
under this section in a State shall remain available for 
obligation in that State for a period of 3 years after the 
last day of the fiscal year for which the funds are author-
ized. Any amounts so apportioned that remain unobligated
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at the end of that period shall be reapportioned among 
the States.’’. 
(b) CONFORMING AMENDMENT.—The analysis for 
chapter 53 is amended by striking the item relating to 
section 5305 and inserting the following:
‘‘5305. Planning programs.’’.
SEC. 3007. PRIVATE ENTERPRISE PARTICIPATION. 
(a) SECTION HEADING.—Section 5306 is amended by 
striking the section heading and inserting the following: 
‘‘§ 5306. Private enterprise participation in planning; 
relationship to other limitations’’. 
(b) CONFORMING AMENDMENT.—The analysis for 
chapter 53 is amended by striking the item relating to 
section 5306 and inserting the following:
‘‘5306. Private enterprise participation in planning; relationship to other limita-
tions.’’.
SEC. 3008. URBANIZED AREA FORMULA GRANTS. 
(a) TECHNICAL AMENDMENTS.—Section 5307 is 
amended—
(1) by striking subsections (h) and (k); and 
(2) by redesignating subsections (i), (j), (l), 
(m), and (n) as subsections (h), (i), (j), (k), and (l), 
respectively. 
(b) DEFINITIONS.—Section 5307(a)(2)(A) is amend-
ed—
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(1) by striking ‘‘a person’’ and inserting ‘‘an 
entity’’; and 
(2) by striking ‘‘section 5305(a) of this title’’ 
and inserting ‘‘chapter 52’’. 
(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 
maintenance items; 
‘‘(B) planning; 
‘‘(C) transit enhancements; 
‘‘(D) operating costs of equipment and fa-
cilities for use in public transportation in an ur-
banized area with a population of less than 
200,000; and 
‘‘(E)(i) in the case of fiscal years 2005 
through 2007, 50 percent of the operating cost 
of equipment and facilities for use in mass 
transportation in an urbanized area with a pop-
ulation of more than 200,000 if the transit sys-
tem with respect to which the grant is being 
made operates in an urbanized area that ex-
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ceeded 200,000 in population according to the 
2000 Census; or 
‘‘(ii) in the case of fiscal years 2008 and 
2009, 25 percent of the operating cost referred 
to in clause (i).’’. 
(2) in the heading to paragraph (2) by striking 
‘‘FISCAL YEARS 2003 AND 2004 AND FOR THE PERIOD 
OF OCTOBER 1, 2004, THROUGH MAY 31, 2005’’ and 
inserting ‘‘FISCAL YEARS 2003 THROUGH 2005’’; 
(3) in paragraph (2)(A) by striking ‘‘fiscal 
years 2003’’ and all that follows through ‘‘2005’’ 
and inserting ‘‘fiscal years 2003, 2004, and 2005’’; 
(4) in paragraph (3) by striking ‘‘section 
5305(a) of this title’’ and inserting ‘‘chapter 52’’; 
and 
(5) in paragraph (3)(A) by striking ‘‘section 
5303 of this title’’ and inserting ‘‘chapter 52’’. 
(d) GRANT
RECIPIENT
REQUIREMENTS.—Section 
5307(d)(1) is amended—
(1) in subparagraph (A) by inserting ‘‘, includ-
ing safety and security aspects of the program’’ 
after ‘‘program’’; 
(2) in subparagraph (H) by striking ‘‘sections 
5301(a) and (d), 5303–5306, and 5310(a)–(d) of
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this title’’ and inserting ‘‘subsections (a) and (d) of 
section 5301 and sections 5303 through 5306’’; 
(3) in subparagraph (I) by striking ‘‘and’’ at 
the end; and 
(4) by adding at the end the following: 
‘‘(K) in the case of a recipient for an ur-
banized area with a population of at least 
200,000—
‘‘(i) will expend one percent of the 
amount the recipient receives each fiscal 
year under this section for projects for 
transit enhancements, as defined in section 
5302(a); and 
‘‘(ii) will submit an annual report list-
ing 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.
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‘‘(2) OPERATING EXPENSES.—A grant for oper-
ating expenses under this section may not exceed 50 
percent of the net project cost of the project. 
‘‘(3) REMAINDER.—The remainder of the net 
project cost shall be provided—
‘‘(A) in cash from sources other than 
amounts of the Government or revenues from 
providing public transportation (excluding reve-
nues derived from the sale of advertising and 
concessions); 
‘‘(B) from an undistributed cash surplus, a 
replacement or depreciation cash fund or re-
serve, or new capital; and 
‘‘(C) from amounts received under a serv-
ice agreement with a State or local social serv-
ice agency or private social service organiza-
tion.’’. 
(f) REVIEWS, AUDITS, AND EVALUATIONS.—Section 
5307(h)(1)(A) (as redesignated by subsection (a) of this 
section) is amended by striking ‘‘shall’’ and inserting 
‘‘may’’. 
(g) RELATIONSHIP
TO
OTHER
LAWS.—Section 
5307(l) (as redesignated by subsection (a) of this section) 
is amended—
(1) by striking paragraph (1);
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(2) by redesignating paragraph (2) as para-
graph (1); 
(3) by inserting ‘‘This chapter.—’’ before ‘‘Sec-
tions 5302’’; 
(4) by adding at the end the following: 
‘‘(2) CHAPTER 15 OF TITLE 5.—The provision 
of assistance under this chapter shall not be con-
strued 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.’’; and 
(5) by aligning the left margin of paragraph (1) 
(as so redesignated) with paragraph (2) (as added 
by paragraph (4) of this subsection). 
(h) TREATMENT.—At the end of section 5307, add 
the following: 
‘‘(m) TREATMENT.—For purposes of this section, the 
United States Virgin Islands shall be treated as an urban-
ized area, as defined in section 5302.’’. 
SEC. 3009. CLEAN FUELS FORMULA GRANT PROGRAM. 
Section 5308 is amended to read as follows: 
‘‘§ 5308. Clean fuels formula grant program 
‘‘(a) DEFINITIONS.—In this section, the following 
definitions apply:
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‘‘(1) CLEAN FUEL BUS.—The term ‘clean fuel 
bus’ means a passenger vehicle used to provide pub-
lic 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 al-
lowed under this section; or 
‘‘(ix) other low or zero emissions tech-
nology; and 
‘‘(B) the Administrator of the Environ-
mental Protection Agency has certified suffi-
ciently reduces harmful emissions. 
‘‘(2) ELIGIBLE
PROJECT.—The term ‘eligible 
project’—
‘‘(A) means a project in a nonattainment 
or maintenance area described in paragraph 
(4)(A) for—
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‘‘(i) purchasing or leasing clean fuel 
buses, including buses that employ a light-
weight composite primary structure; 
‘‘(ii) constructing or leasing clean fuel 
buses or electrical recharging facilities and 
related equipment for such buses; or 
‘‘(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 nonattain-
ment or maintenance area described in para-
graph (4)(A) relating to clean fuel, biodiesel, 
hybrid electric, or zero emissions technology 
buses that exhibit equivalent or superior emis-
sions reductions to existing clean fuel or hybrid 
electric technologies. 
‘‘(3) MAINTENANCE AREA.—The term ‘mainte-
nance area’ has the meaning such term has under 
section 101 of title 23. 
‘‘(4) RECIPIENT.—
‘‘(A) IN GENERAL.—The term ‘recipient’ 
means a designated recipient (as defined in sec-
tion 5307(a)(2)) for an area that, and a recipi-
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ent 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 accordance with this section to recipients to finance eli-
gible projects. 
‘‘(c) APPORTIONMENT OF FUNDS.—
‘‘(1) FORMULA.—The Secretary shall apportion 
among recipients amounts made available to carry 
out this section for a fiscal year. Of such amounts—
‘‘(A) two-thirds shall be apportioned to re-
cipients serving urbanized areas with a popu-
lation of at least 1,000,000, of which—
‘‘(i) 50 percent shall be apportioned 
so that each such recipient receives a grant
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under this section in an amount equal to 
the ratio that—
‘‘(I) the number of vehicles in the 
bus fleet of the recipient, weighted by 
severity of nonattainment for the area 
served by the recipient; bears to 
‘‘(II) the total number of vehicles 
in the bus fleets of all such recipients, 
weighted by severity of nonattainment 
for all areas served by such recipients; 
and 
‘‘(ii) 50 percent shall be apportioned 
so that each such recipient receives a grant 
under this section in an amount equal to 
the ratio that—
‘‘(I) the number of bus passenger 
miles (as defined in section 5336(c)) 
of the recipient, weighted by severity 
of nonattainment of the area served 
by the recipient; bears to 
‘‘(II) the total number of bus 
passenger miles (as defined in section 
5336(c)) 
of 
all 
such 
recipients, 
weighted by severity of nonattainment
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of all areas served by such recipients; 
and 
‘‘(B) one-third shall be apportioned to re-
cipients serving urbanized areas with a popu-
lation of less than 1,000,000, of which—
‘‘(i) 50 percent shall be apportioned 
so that each such recipient receives a grant 
under this section in an amount equal to 
the ratio that—
‘‘(I) the number of vehicles in the 
bus fleet of the recipient, weighted by 
severity of nonattainment for the area 
served by the recipient; bears to 
‘‘(II) the total number of vehicles 
in the bus fleets of all such recipients, 
weighted by severity of nonattainment 
for all areas served by such recipients; 
and 
‘‘(ii) 50 percent shall be apportioned 
so that each such recipient receives a grant 
under this section in an amount equal to 
the ratio that—
‘‘(I) the number of bus passenger 
miles (as defined in section 5336(c)) 
of the recipient, weighted by severity
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of nonattainment of the area served 
by the recipient; bears to 
‘‘(II) the total number of bus 
passenger miles (as defined in section 
5336(c)) 
of 
all 
such 
recipients, 
weighted by severity of nonattainment 
of all areas served by such recipients. 
‘‘(2) WEIGHTING OF SEVERITY OF NONATTAIN-
MENT.—
‘‘(A) IN GENERAL.—For purposes of para-
graph (1), subject to subparagraph (B), the 
number of buses in the bus fleet, or the number 
of passenger miles, shall be multiplied by a fac-
tor of—
‘‘(i) 1.0 if, at the time of the appor-
tionment, the area is a maintenance area 
for ozone or carbon monoxide; 
‘‘(ii) 1.1 if, at the time of the appor-
tionment, the area is classified as a mar-
ginal ozone nonattainment area under sub-
part 2 of part D of title I of the Clean Air 
Act (42 U.S.C. 7511 et seq.); 
‘‘(iii) 1.2 if, at the time of the appor-
tionment, the area is classified as a mod-
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erate ozone nonattainment area under sub-
part 2 of such part; 
‘‘(iv) 1.3 if, at the time of the appor-
tionment, the area is classified as a serious 
ozone nonattainment area under subpart 2 
of such part; 
‘‘(v) 1.4 if, at the time of the appor-
tionment, the area is classified as a severe 
ozone nonattainment area under subpart 2 
of such part; or 
‘‘(vi) 1.5 if, at the time of the appor-
tionment, the area is classified as an ex-
treme ozone nonattainment area under 
subpart 2 of such part. 
‘‘(B) ADDITIONAL ADJUSTMENT FOR CAR-
BON
MONOXIDE
AREAS.—If, in addition to 
being classified as a nonattainment or mainte-
nance area for ozone under subpart 2 of such 
part, the area was also classified under subpart 
3 of such part as a nonattainment area for car-
bon monoxide, the weighted nonattainment or 
maintenance area fleet and passenger miles for 
the recipient, as calculated under subparagraph 
(A), shall be further multiplied by a factor of 
1.2.
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‘‘(d) CLEAN DIESEL BUSES.—Not more than 25 per-
cent 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. 
‘‘(e) GRANT REQUIREMENTS.—
‘‘(1) IN GENERAL.—A grant under this section 
shall be subject 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. 
‘‘(f) AVAILABILITY OF FUNDS.—Any amount made 
available or appropriated under this section—
‘‘(1) shall remain available to a project for 1 
year 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.’’. 
SEC. 3010. CAPITAL INVESTMENT GRANTS. 
(a) SECTION HEADING.—Section 5309 is amended by 
striking the section heading and inserting the following: 
‘‘§ 5309. Capital investment grants’’. 
(b) LOANS FOR REAL PROPERTY INTERESTS.—Sec-
tion 5309 is amended—
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(1) in subsections (a)(1) and (a)(2) by striking 
‘‘and loans’’; 
(2) by striking subsections (b) and (c); and 
(3) by redesignating subsection (d) as sub-
section (b). 
(c) PROJECT AS PART OF APPROVED PROGRAM OF 
PROJECTS.—Section 5309(b) (as redesignated by sub-
section (b) of this section) is amended—
(1) by striking ‘‘Except as provided in sub-
sections (b)(2) and (e) of the section, the’’ and in-
serting ‘‘The’’; and 
(2) by striking ‘‘or loan’’. 
(d) CRITERIA
AND
FUNDING.—Section 5309 is 
amended by striking subsections (e) through (p) and in-
serting the following: 
‘‘(c) MAJOR
CAPITAL
INVESTMENT
GRANTS
OF 
$75,000,000 OR MORE.—
‘‘(1) FULL FUNDING GRANT AGREEMENT.—A 
major new fixed guideway capital project financed 
under this subsection shall be carried out through a 
full funding grant agreement. The Secretary shall 
enter into a full funding grant agreement based on 
the evaluations and ratings required under this sub-
section. The Secretary shall not enter into a full 
funding grant agreement for a project unless that
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project is authorized for final design and construc-
tion. 
‘‘(2) APPROVAL
OF
GRANTS.—The Secretary 
may approve a grant under this section for a major 
new fixed guideway capital project only if the Sec-
retary, based upon evaluations and considerations 
set forth in paragraph (3), determines that the pro-
posal is—
‘‘(A) based on the results of an alter-
natives analysis and preliminary engineering; 
‘‘(B) justified based on a comprehensive 
review of its mobility improvements, environ-
mental benefits, cost effectiveness, operating ef-
ficiencies, and transit supportive policies, and 
existing land use; 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. 
‘‘(3) CONSIDERATIONS.—
‘‘(A) RESULTS
OF
ALTERNATIVES
ANAL-
YSIS
AND
PRELIMINARY
ENGINEERING.—In 
evaluating a proposed project for purposes of 
making the finding required by paragraph
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(2)(A), the Secretary shall analyze and consider 
the results of the alternatives analysis and pre-
liminary engineering for the project. 
‘‘(B) PROJECT JUSTIFICATION.—In evalu-
ating a proposed project for purposes of making 
the finding required by paragraph (2)(B), the 
Secretary shall—
‘‘(i) consider the direct and indirect 
costs of relevant alternatives; 
‘‘(ii) consider factors such as conges-
tion relief, improved mobility, air pollution, 
noise pollution, energy consumption, and 
all associated ancillary and mitigation 
costs necessary to carry out each alter-
native analyzed and recognize reductions in 
local infrastructure costs achieved through 
compact land use development; 
‘‘(iii) identify and consider public 
transportation supportive existing land use 
policies and future patterns and the cost of 
suburban sprawl; 
‘‘(iv) consider the degree to which the 
project increases the mobility of the public 
transportation dependent population or 
promotes economic development;
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‘‘(v) consider population density and 
current transit ridership in the corridor; 
‘‘(vi) consider the technical capability 
of the grant recipient to construct the 
project; 
‘‘(vii) adjust the project justification 
to reflect differences in local land, con-
struction, and operating costs; and 
‘‘(viii) consider other factors that the 
Secretary determines appropriate to carry 
out this chapter. 
‘‘(C) LOCAL FINANCIAL COMMITMENT.—In 
evaluating a proposed project under paragraph 
(2)(C), the Secretary shall require that—
‘‘(i) the proposed project plan pro-
vides for the availability of contingency 
amounts that the Secretary determines to 
be reasonable to cover unanticipated cost 
increases; 
‘‘(ii) each proposed local source of 
capital and operating financing is stable, 
reliable, and available within the proposed 
project timetable; and 
‘‘(iii) local resources are available to 
operate the overall proposed public trans-
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portation system (including essential feeder 
bus and other services necessary to achieve 
the projected ridership levels) without re-
quiring a reduction in existing public 
transportation services to operate the pro-
posed project. 
‘‘(D) ASSESSMENT
OF
LOCAL
FINANC-
ING.—In assessing the stability, reliability, and 
availability of proposed sources of local financ-
ing under paragraph (2)(C), the Secretary shall 
consider—
‘‘(i) existing grant commitments; 
‘‘(ii) the degree to which financing 
sources are dedicated to the purposes pro-
posed; 
‘‘(iii) any debt obligation that exists 
or is proposed by the recipient for the pro-
posed project or other public transpor-
tation purpose; and 
‘‘(iv) the extent to which the project 
has a local financial commitment that ex-
ceeds the required non-Federal share of 
the cost of the project. 
‘‘(4) 
EVALUATION
AND
RATING
OF 
PROJECTS.—A proposed project under this sub-
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section may advance from alternatives analysis to 
preliminary engineering, and may advance from pre-
liminary engineering to final design and construc-
tion, only if the Secretary finds that the project 
meets the requirements of this section and there is 
a reasonable likelihood that the project will continue 
to meet such requirements. In making the findings, 
the Secretary shall evaluate and rate the project as 
‘highly recommended’, ‘recommended’, or ‘not rec-
ommended’ based on the results of alternatives anal-
ysis, the project justification criteria, and the degree 
of local financial commitment, as required under this 
subsection. In rating the projects, the Secretary 
shall provide, in addition to the overall project rat-
ing, individual ratings for each of the criteria estab-
lished by regulation. 
‘‘(5) MAJOR
DEFINED.—In this section, the 
term ‘major’, as used with respect to a new fixed 
guideway capital project, means the Federal assist-
ance provided or to be provided under this section 
for the project is $75,000,000 or more. 
‘‘(d) CAPITAL INVESTMENT GRANTS LESS THAN 
$75,000,000.—
‘‘(1) IN GENERAL.—Subject to the provisions of 
this subsection, if the Federal assistance provided or
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to be provided under this section with respect to a 
new fixed guideway capital project is less than 
$75,000,000, and not less than $25,000,000, and 
the total estimated net capital cost of the project is 
less than $200,000,000, the project shall be subject 
to the requirements in this subsection. A new fixed 
guideway capital project is not subject to the re-
quirements of this subsection if the assistance pro-
vided under this section with respect to the project 
is less than $25,000,000. 
‘‘(2) SELECTION
CRITERIA.—The Secretary 
may provide Federal assistance under this sub-
section with respect to a proposed project only if the 
Secretary finds that the project is—
‘‘(A) based on the results of planning and 
alternatives analysis; 
‘‘(B) justified based on a review of its pub-
lic transportation supportive land use policies, 
cost effectiveness, and effect on local economic 
development; and 
‘‘(C) supported by an acceptable degree of 
local financial commitment. 
‘‘(3) PLANNING AND ALTERNATIVES.—In evalu-
ating a project under paragraph (2)(A), the Sec-
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retary shall analyze and consider the results of plan-
ning and alternatives analysis for the project. 
‘‘(4) PROJECT JUSTIFICATION.—For purposes 
of making the finding under paragraph (2)(B), the 
Secretary shall—
‘‘(A) determine the degree to which the 
project is consistent with local land use policies 
and is likely to achieve local developmental 
goals; 
‘‘(B) determine the cost effectiveness of 
the project at the time of the initiation of rev-
enue service; 
‘‘(C) determine the degree to which the 
project will have a positive effect on local eco-
nomic development; 
‘‘(D) consider the reliability of the fore-
casts of costs and ridership associated with the 
project; and 
‘‘(E) consider other factors that the Sec-
retary determines appropriate to carry out this 
subsection. 
‘‘(5) LOCAL
FINANCIAL
COMMITMENT.—For 
purposes of paragraph (2)(C), the Secretary shall re-
quire that each proposed local source of capital and
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operating financing is stable, reliable, and available 
within the proposed project timetable. 
‘‘(6) ADVANCEMENT OF PROJECT TO DEVELOP-
MENT AND CONSTRUCTION.—
‘‘(A) GENERAL RULE.—A proposed project 
under this subsection may advance from plan-
ning and alternatives analysis to project devel-
opment and construction only if—
‘‘(i) the Secretary finds that the 
project meets the requirements of this sub-
section and there is a reasonable likelihood 
that the project will continue to meet such 
requirements; and 
‘‘(ii) the metropolitan planning orga-
nization has adopted the locally preferred 
alternative for the project into the long-
range transportation plan. 
‘‘(B) EVALUATION.—In making the find-
ings under subparagraph (A), the Secretary 
shall evaluate and rate the project as ‘rec-
ommended’ or ‘not recommended’ based on the 
results of the analysis of the project justifica-
tion criteria and the degree of local financial 
commitment, as required by this subsection.
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‘‘(7) CONTENTS
OF
PROJECT
CONSTRUCTION 
GRANT AGREEMENT.—A project construction grant 
agreement under this subsection shall specify the 
scope of the project to be constructed, the estimated 
net project cost of the project, the schedule under 
which the project shall be constructed, the maximum 
amount of funding to be obtained under this sub-
section, the proposed schedule for obligation of fu-
ture Federal grants, and the sources of funding 
from other than the Government. The agreement 
may include a commitment on the part of the Sec-
retary to provide funding for the project in future 
fiscal years. 
‘‘(8) LIMITATION ON ENTRY INTO CONSTRUC-
TION
GRANT
AGREEMENT.—The Secretary may 
enter into a project construction grant agreement 
for a project under this subsection only if the project 
is authorized for construction and has been rated as 
‘recommended’ under this subsection. 
‘‘(9) REGULATIONS.—Not later than 120 days 
after the date of enactment of the Federal Public 
Transportation Act of 2005, the Secretary shall 
issue regulations establishing an evaluation and rat-
ing process for proposed projects under this sub-
section that is based on the results of project jus-
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tification and local financial commitment, as re-
quired under this subsection. 
‘‘(10) FIXED GUIDEWAY CAPITAL PROJECT.—In 
this subsection, the term ‘fixed guideway capital 
project’ includes a corridor-based public transpor-
tation bus capital project if the majority of the 
project’s corridor right-of-way is dedicated alignment 
for exclusive use by public transportation vehicles for 
all or part of the day. 
‘‘(e) PREVIOUSLY ISSUED LETTER OF INTENT OR 
FULL FUNDING GRANT AGREEMENT.—Subsections (c) 
and (d) do not apply to projects for which the Secretary 
has issued a letter of intent or entered into a full funding 
grant agreement before the date of enactment of the Fed-
eral Public Transportation Act of 2005. Subsection (d) 
also does not apply to projects for which the Secretary 
has received an application for final design before such 
date of enactment. 
‘‘(f) LETTERS OF INTENT, FULL FUNDING GRANT 
AGREEMENTS, AND EARLY SYSTEMS WORK AGREE-
MENTS.—
‘‘(1) LETTERS OF INTENT.—
‘‘(A) AMOUNTS
INTENDED
TO
BE
OBLI-
GATED.—The Secretary may issue a letter of 
intent to an applicant announcing an intention
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to obligate, for a capital project under this sec-
tion, an amount from future available budget 
authority specified in law that is not more than 
the amount stipulated as the financial partici-
pation of the Secretary in the project. When a 
letter is issued for fixed guideway projects, the 
amount shall be sufficient to complete at least 
an operable segment. 
‘‘(B) TREATMENT.—The issuance of a let-
ter under subparagraph (A) is deemed not to be 
an obligation under sections 1108(c), 1108(d), 
1501, and 1502(a) of title 31 or an administra-
tive commitment. 
‘‘(2) FULL FUNDING GRANT AGREEMENTS.—
‘‘(A) TERMS.—The Secretary may make a 
full funding grant agreement with an applicant. 
The agreement shall—
‘‘(i) establish the terms of participa-
tion by the Government in a project under 
this section; 
‘‘(ii) establish the maximum amount 
of Government financial assistance for the 
project; 
‘‘(iii) cover the period of time for com-
pleting the project, including a period ex-
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tending beyond the period of an authoriza-
tion; and 
‘‘(iv) make timely and efficient man-
agement of the project easier according to 
the law of the United States. 
‘‘(B) SPECIAL FINANCIAL RULES.—
‘‘(i) IN
GENERAL.—An agreement 
under this paragraph obligates an amount 
of available budget authority specified in 
law and may include a commitment, con-
tingent on amounts to be specified in law 
in advance for commitments under this 
paragraph, 
to 
obligate 
an 
additional 
amount from future available budget au-
thority specified in law. 
‘‘(ii) STATEMENT
OF
CONTINGENT 
COMMITMENT.—The agreement shall state 
that the contingent commitment is not an 
obligation of the Government. 
‘‘(iii) INTEREST AND OTHER FINANC-
ING COSTS.—Interest and other financing 
costs of efficiently carrying out a part of 
the project within a reasonable time are a 
cost of carrying out the project under a 
full funding grant agreement, except that
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eligible costs may not be more than the 
cost of the most favorable financing terms 
reasonably available for the project at the 
time of borrowing. The applicant shall cer-
tify, in a way satisfactory to the Secretary, 
that the applicant has shown reasonable 
diligence in seeking the most favorable fi-
nancing terms. 
‘‘(iv) COMPLETION
OF
OPERABLE 
SEGMENT.—The amount stipulated in an 
agreement under this paragraph for a fixed 
guideway project shall be sufficient to com-
plete at least an operable segment. 
‘‘(3) EARLY SYSTEM WORK AGREEMENTS.—
‘‘(A) CONDITIONS.—The Secretary may 
make an early systems work agreement with an 
applicant if a record of decision under the Na-
tional Environmental Policy Act of 1969 (42 
U.S.C. 4321 et seq.) has been issued on the 
project and the Secretary finds there is reason 
to believe—
‘‘(i) a full funding grant agreement 
for the project will be made; and
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‘‘(ii) the terms of the work agreement 
will promote ultimate completion of the 
project more rapidly and at less cost. 
‘‘(B) CONTENTS.—
‘‘(i) IN GENERAL.—A work agreement 
under this paragraph obligates an amount 
of available budget authority specified in 
law and shall provide for reimbursement of 
preliminary costs of carrying out the 
project, including land acquisition, timely 
procurement of system elements for which 
specifications are decided, and other activi-
ties the Secretary decides are appropriate 
to make efficient, long-term project man-
agement easier. 
‘‘(ii) 
PERIOD
COVERED.—A 
work 
agreement under this paragraph shall 
cover the period of time the Secretary con-
siders appropriate. The period may extend 
beyond the period of current authorization. 
‘‘(iii) INTEREST AND OTHER FINANC-
ING COSTS.—Interest and other financing 
costs of efficiently carrying out the work 
agreement within a reasonable time are a 
cost of carrying out the agreement, except
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that eligible costs may not be more than 
the cost of the most favorable financing 
terms reasonably available for the project 
at the time of borrowing. The applicant 
shall certify, in a way satisfactory to the 
Secretary, that the applicant has shown 
reasonable diligence in seeking the most 
favorable financing terms. 
‘‘(iv) 
FAILURE
TO
CARRY
OUT 
PROJECT.—If an applicant does not carry 
out the project for reasons within the con-
trol of the applicant, the applicant shall 
repay all Government payments made 
under the work agreement plus reasonable 
interest and penalty charges the Secretary 
establishes in the agreement. 
‘‘(4) LIMITATION ON AMOUNTS.—
‘‘(A) 
MAJOR
CAPITAL
INVESTMENT 
GRANTS
CONTINGENT
COMMITMENT
AUTHOR-
ITY.—The total estimated amount of future ob-
ligations of the Government and contingent 
commitments to incur obligations covered by all 
outstanding letters of intent, full funding grant 
agreements, and early systems work agreements 
under this subsection for major new fixed
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guideway capital projects may be not more than 
the greater of the amount authorized under sec-
tions 5338(b) and 5338(h)(1) for such projects 
or an amount equivalent to the last 3 fiscal 
years of funding allocated under subsections 
(m)(1)(B) and (m)(2)(B)(ii) for such projects, 
less an amount the Secretary reasonably esti-
mates is necessary for grants under this section 
for those of such projects that are not covered 
by a letter or agreement. The total amount cov-
ered by new letters and contingent commit-
ments included in full funding grant agree-
ments and early systems work agreements for 
such projects may be not more than a limitation 
specified in law. 
‘‘(B) OTHER
CONTINGENT
COMMITMENT 
AUTHORITY.—The total estimated amount of 
future obligations of the Government and con-
tingent commitments to incur obligations cov-
ered by all project construction grant agree-
ments and early system work agreements under 
this subsection for small capital projects de-
scribed in subsection (d) may be not more than 
the greater of the amount allocated under sub-
section (m)(2)(A) for such projects or an
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amount equivalent to the last fiscal year of 
funding allocated under subsection (m)(2)(A) 
for such projects, less an amount the Secretary 
reasonably estimates is necessary for grants 
under this section for those of such projects 
that are not covered by an agreement. The total 
amount covered by new contingent commit-
ments included in project construction grant 
agreements and early systems work agreements 
for such projects may be not more than a limi-
tation specified in law. 
‘‘(C) INCLUSION
OF
CERTAIN
COMMIT-
MENTS.—Future obligations of the Government 
and contingent commitments made against the 
contingent commitment authority under section 
3032(g)(2) of the Intermodal Surface Trans-
portation Efficiency Act of 1991 (106 Stat. 
2125) for the San Francisco BART to the Air-
port project for fiscal years 2002, 2003, 2004, 
2005, and 2006 shall be charged against sec-
tion 3032(g)(2) of that Act. 
‘‘(D) APPROPRIATION REQUIRED.—An ob-
ligation may be made under this subsection only 
when amounts are appropriated for the obliga-
tion.
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‘‘(5) NOTIFICATION OF CONGRESS.—At least 60 
days before issuing a letter of intent or entering into 
a full funding grant agreement or project construc-
tion grant agreement under this section, the Sec-
retary shall notify, in writing, the Committee on 
Transportation and Infrastructure of the House of 
Representatives and the Committee on Banking, 
Housing, and Urban Affairs of the Senate of the 
proposed letter or agreement. The Secretary shall in-
clude with the notification a copy of the proposed 
letter or agreement as well as the evaluations and 
ratings for the project. 
‘‘(g) GOVERNMENT’S
SHARE
OF
NET
PROJECT 
COST.—
‘‘(1) FEDERAL SHARE.—Based on engineering 
studies, studies of economic feasibility, and informa-
tion on the expected use of equipment or facilities, 
the Secretary shall estimate the net project cost. A 
grant for the project shall be for 80 percent of the 
net capital project cost, unless the grant recipient 
requests a lower grant percentage. 
‘‘(2) REMAINDER OF NET PROJECT COST.—The 
remainder of net project costs shall be provided from 
an undistributed cash surplus, a replacement or de-
preciation cash fund or reserve, or new capital.
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‘‘(3) LIMITATION
ON
STATUTORY
CONSTRUC-
TION.—Nothing in this section, including paragraph 
(1) and subsections (c)(3)(D)(iv) and (c)(4), shall be 
construed as authorizing the Secretary to require a 
non-Federal financial commitment for a project that 
is more than 20 percent of the net capital project 
cost. 
‘‘(4) SPECIAL
RULE
FOR
ROLLING
STOCK 
COSTS.—In addition to amounts allowed pursuant to 
paragraph (1), a planned extension to a fixed guide-
way system may include the cost of rolling stock pre-
viously purchased if the applicant satisfies the Sec-
retary that only amounts other than amounts of the 
Government were used and that the purchase was 
made for use on the extension. A refund or reduc-
tion of the remainder may be made only if a refund 
of a proportional amount of the grant of the Govern-
ment is made at the same time. 
‘‘(5) LIMITATION
ON
APPLICABILITY.—This 
subsection does not apply to projects for which the 
Secretary has entered into a full funding grant 
agreement before the date of enactment of the Fed-
eral Public Transportation Act of 2005. 
‘‘(h) FISCAL CAPACITY CONSIDERATIONS.—If the 
Secretary gives priority consideration to financing projects
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that include more than the non-Government share re-
quired under subsection (g), the Secretary shall give equal 
consideration to differences in the fiscal capacity of State 
and local governments. 
‘‘(i) REPORTS ON NEW STARTS.—
‘‘(1) ANNUAL
DOT
REPORT.—Not later than 
the first Monday in February of each year, the Sec-
retary shall submit to the Committee on Transpor-
tation and Infrastructure of the House of Represent-
atives and the Committee on Banking, Housing, and 
Urban Affairs of the Senate a report that includes—
‘‘(A) a proposal of allocations of amounts 
to be available to finance grants for new fixed 
guideway capital projects among applicants for 
these amounts; 
‘‘(B) evaluations and ratings, as required 
under subsection (c), for each such project that 
is authorized by the Federal Public Transpor-
tation Act of 2005; and 
‘‘(C) recommendations of such projects for 
funding based on the evaluations and ratings 
and on existing commitments and anticipated 
funding levels for the next 3 fiscal years and for 
the next 10 fiscal years based on information 
currently available to the Secretary.
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‘‘(2) ANNUAL GAO REVIEW.—The Comptroller 
General shall—
‘‘(A) conduct an annual review of—
‘‘(i) the processes and procedures for 
evaluating, rating, and recommending new 
fixed guideway capital projects; and 
‘‘(ii) the Secretary’s implementation 
of such processes and procedures; and 
‘‘(B) report to Congress on the results of 
such review by May 31 of each year. 
‘‘(j) UNDERTAKING PROJECTS IN ADVANCE.—
‘‘(1) IN GENERAL.—The Secretary may pay the 
Government’s share of the net capital project cost to 
a State or local governmental authority that carries 
out any part of a project described in this section 
without the aid of amounts of the Government and 
according to all applicable procedures and require-
ments if—
‘‘(A) the State or local governmental au-
thority 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
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specifications for the part in the same way as 
other projects under this section. 
‘‘(2) FINANCING COSTS.—
‘‘(A) IN GENERAL.—The cost of carrying 
out part of a project includes the amount of in-
terest earned and payable on bonds issued by 
the State or local governmental authority to the 
extent proceeds of the bonds are expended in 
carrying out the part. 
‘‘(B) LIMITATION ON AMOUNT OF INTER-
EST.—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. 
‘‘(C) CERTIFICATION.—The applicant shall 
certify, in a manner satisfactory to the Sec-
retary, that the applicant has shown reasonable 
diligence in seeking the most favorable financial 
terms. 
‘‘(3) CAPITAL
PROJECT
COST
INDICES.—The 
Secretary shall consider changes in capital project 
cost indices when determining the estimated cost 
under paragraph (2). 
‘‘(k) BUS AND BUS FACILITIES PROJECTS.—In mak-
ing 
grants 
under 
subsections 
(m)(1)(C) 
and
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(m)(2)(B)(iii), the Secretary shall consider the age of 
buses, bus fleets, related equipment, and bus-related facili-
ties. 
‘‘(l) AVAILABILITY OF AMOUNTS.—An amount made 
available or appropriated under section 5338(b), 5338(g), 
or 5338(h) for replacement, rehabilitation, and purchase 
of buses and related equipment and construction of bus-
related facilities or for new fixed guideway capital projects 
shall remain available for 3 fiscal years, including the fis-
cal year in which the amount is made available or appro-
priated. Any of such amounts that are unobligated at the 
end of the 3-fiscal-year period shall be deobligated and 
may be used by the Secretary for any purpose under this 
section. 
‘‘(m) ALLOCATING AMOUNTS.—
‘‘(1) FISCAL YEAR 2004.—The total amount of 
funds made available by or appropriated under sec-
tion 5338(b) for fiscal year 2004 shall be allocated 
as follows: 
‘‘(A) 40 percent for fixed guideway mod-
ernization; 
‘‘(B) 40 percent for major new fixed guide-
way capital projects; and
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‘‘(C) 20 percent to replace, rehabilitate, 
and purchase buses and related equipment and 
to construct bus-related facilities. 
‘‘(2) FISCAL
YEARS
2005–2009.—The total 
amount of funds made available by section 5338(g), 
and appropriated under section 5338(h), for each of 
fiscal years 2005 through 2009 shall be allocated in 
the fiscal year as follows: 
‘‘(A) SMALL
CAPITAL
PROJECTS.—From 
funds appropriated under section 5338(h) for 
new fixed guideway capital projects described in 
subsection (d)—
‘‘(i) $135,000,000 in fiscal year 2005; 
‘‘(ii) $175,000,000 in fiscal year 
2006; 
‘‘(iii) $200,000,000 in fiscal year 
2007; 
‘‘(iv) $200,000,000 in fiscal year 
2008; and 
‘‘(v) $225,000,000 in fiscal year 
2009. 
‘‘(B) REMAINDER.—After the allocation 
under subparagraph (A), the remainder of such 
total amount shall be allocated as follows:
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‘‘(i) 40 percent for fixed guideway 
modernization, to be derived from funds 
made available under section 5338(g). 
‘‘(ii) 40 percent for major new fixed 
capital guideway projects, to be derived 
from funds appropriated under section 
5338(h). 
‘‘(iii) 20 percent to replace, rehabili-
tate, and purchase buses and related 
equipment and to construct bus-related fa-
cilities, to be derived from funds made 
available under section 5338(g). 
‘‘(3) FUNDING FOR FERRY BOAT SYSTEMS.—Of 
the amounts made available under paragraphs 
(1)(B) and (2)(B)(ii), $10,400,000 shall be available 
in each of fiscal years 2004 through 2009 for new 
fixed guideway capital projects in Alaska or Hawaii 
that are for ferry boats or ferry terminal facilities or 
that are for approaches to ferry terminal facilities. 
Of the amounts made available under paragraphs 
(1)(C) and (2)(B)(iii), $10,000,000 shall be avail-
able in each of fiscal years 2005 through 2009 for 
ferry boats or ferry terminal facilities. 
‘‘(4) FUEL
CELL
BUS
PROGRAM.—Of the 
amounts made available under subsections (m)(1)(C)
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and (m)(2)(B)(iii) for a fiscal year, the following 
amounts shall be set aside for the national fuel cell 
bus technology development program under section 
3039 of the Federal Public Transportation Act of 
2005: 
‘‘(A) $4,849,950 for fiscal year 2004. 
‘‘(B) $10,000,000 for fiscal year 2005. 
‘‘(C) $11,000,000 for fiscal year 2006. 
‘‘(D) $12,000,000 for fiscal year 2007. 
‘‘(E) $13,000,000 for fiscal year 2008. 
‘‘(F) $14,000,000 for fiscal year 2009. 
‘‘(n) NEW FIXED GUIDEWAY CAPITAL PROJECT DE-
FINED.—In this section, the term ‘new fixed guideway 
capital project’ means a minimum operable segment of a 
capital project for a new fixed guideway system or exten-
sion to an existing fixed guideway system.’’. 
(e) CONFORMING AMENDMENTS.—
(1) CHAPTER
ANALYSIS.—The analysis for 
chapter 53 is amended by striking the item relating 
to section 5309 and inserting the following:
‘‘5309. Capital investment grants.’’.
(2) SECTION 5328.—Section 5328(a) is amend-
ed—
(A) in paragraph (2) by striking ‘‘5309(e)’’ 
and inserting ‘‘5309(c)’’; and
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(B) in paragraph (4) by striking ‘‘under 
section 5309(o)(1)’’ and inserting ‘‘under sec-
tion 5309(i)(1)’’. 
SEC. 3011. FORMULA GRANTS FOR SPECIAL NEEDS OF EL-
DERLY INDIVIDUALS AND INDIVIDUALS WITH 
DISABILITIES. 
(a) IN GENERAL.—Section 5310 is amended—
(1) by striking the section heading and insert-
ing the following: 
‘‘§ 5310. Formula grants for special needs of elderly 
individuals and individuals with disabil-
ities’’; 
(2) by striking subsections (a) through (g) and 
inserting the following: 
‘‘(a) GENERAL AUTHORITY.—
‘‘(1) 
GRANTS.—The 
Secretary 
may 
make 
grants to States and local governmental authorities 
under this section for public transportation capital 
projects, and operating costs associated with public 
transportation capital projects, planned, designed, 
and carried out to meet the special needs of elderly 
individuals and individuals with disabilities. 
‘‘(2) SUBRECIPIENTS.—A State that receives a 
grant under this section may allocate the amounts of 
the grant to—
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‘‘(A) a private nonprofit organization if the 
public transportation service provided under 
paragraph (1) is unavailable, insufficient, or in-
appropriate; or 
‘‘(B) a governmental authority that—
‘‘(i) is approved by the State to co-
ordinate services for elderly individuals and 
individuals with disabilities; or 
‘‘(ii) certifies that there are not any 
nonprofit organizations readily available in 
the area to provide the services described 
under paragraph (1). 
‘‘(3) 
ACQUIRING
PUBLIC
TRANSPORTATION 
SERVICES.—A public transportation capital project 
under this section may include acquisition of public 
transportation services as an eligible capital expense. 
‘‘(4) ADMINISTRATIVE EXPENSES.—A State or 
local governmental authority may use not more than 
10 percent of the amounts apportioned to the State 
under this section to administer, plan, and provide 
technical assistance for a project funded under this 
section. 
‘‘(b) APPORTIONMENT AND TRANSFERS.—
‘‘(1) APPORTIONMENT.—
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‘‘(A) FORMULA.—The Secretary shall ap-
portion amounts made available to carry out 
this section under a formula the Secretary ad-
ministers that considers the number of elderly 
individuals and individuals with disabilities in 
each State. 
‘‘(B) LOW DENSITY ADJUSTMENT.—In ad-
ministering the apportionment formula under 
subparagraph (A)—
‘‘(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 elderly indi-
viduals and individuals with disabilities in 
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 30 persons per square 
mile, the Secretary shall multiply by a fac-
tor of 1.25 the number of elderly individ-
uals and individuals with disabilities in the 
State (as determined using the most recent 
decennial United States Census).
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‘‘(2) TRANSFERS.—Any State’s apportionment 
remaining available for obligation at the beginning 
of the 90-day period before the end of the period of 
availability of the apportionment is available to the 
State for transfer to supplement amounts appor-
tioned to the State under section 5311(c) or 
5336(a)(1), or both. Any funds transferred pursuant 
to this paragraph shall be made available only for el-
igible projects as described in this section. 
‘‘(c) GOVERNMENT’S SHARE OF COSTS.—
‘‘(1) CAPITAL PROJECTS.—A grant for a capital 
project under this section shall be for 80 percent of 
the net capital costs of the project, as determined by 
the Secretary; except that in the case of a State de-
scribed in section 120(b)(1) of title 23, such percent-
age shall be increased in accordance with such sec-
tion. 
‘‘(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-
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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. 
‘‘(d) GRANT REQUIREMENTS.—
‘‘(1) IN GENERAL.—A grant under this section 
shall be subject to all requirements of a grant under 
section 5307. A grant to a subrecipient under this 
section shall be subject to such requirements to the 
extent the Secretary considers appropriate. 
‘‘(2) COORDINATION
WITH
NONPROFIT
PRO-
VIDERS.—A recipient that transfers funds to an ap-
portionment under section 5336(a)(1) pursuant to
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subsection (b)(2) shall certify that the project for 
which the funds are requested under this section has 
been coordinated with nonprofit providers of serv-
ices. 
‘‘(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. 
‘‘(4) 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. 
‘‘(e) STATE PROGRAM.—
‘‘(1) IN GENERAL.—Amounts made available to 
carry out this section may be used for transportation 
projects to assist in providing transportation services 
for elderly individuals and individuals with disabil-
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ities that are included in a State program of 
projects. 
‘‘(2) SUBMISSION AND APPROVAL.—A program 
shall be submitted annually to the Secretary for ap-
proval and shall contain an assurance that the pro-
gram provides for maximum feasible coordination of 
transportation services assisted under this section 
with transportation services assisted by other Gov-
ernment sources. 
‘‘(f) LEASING VEHICLES.—Vehicles acquired under 
this section may be leased to local governmental authori-
ties to improve transportation services designed to meet 
the special needs of elderly individuals and individuals 
with disabilities.’’; and 
(3) by redesignating subsections (h) through (j) 
as subsections (g) through (i), respectively. 
(b) CONFORMING AMENDMENT.—The analysis for 
chapter 53 is amended by striking the item relating to 
section 5310 and inserting the following:
‘‘5310. Formula grants for special needs of elderly individuals and individuals 
with disabilities.’’.
SEC. 3012. FORMULA GRANTS FOR OTHER THAN URBAN-
IZED AREAS. 
(a) DEFINITIONS.—Section 5311(a) is amended to 
read as follows:
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‘‘(a) DEFINITIONS.—In this section, the following 
definitions apply: 
‘‘(1) RECIPIENT.—The term ‘recipient’ means a 
State that receives a Federal transit program grant 
directly from the Government. 
‘‘(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 Federal transit pro-
gram grant indirectly through a recipient.’’. 
(b) GENERAL
AUTHORITY.—Section 5311(b) is 
amended to read as follows: 
‘‘(b) GENERAL AUTHORITY.—
‘‘(1) GRANTS.—Except as provided in para-
graph (2), the Secretary may make grants to other 
than urbanized areas under this section for the fol-
lowing: 
‘‘(A) Public transportation capital projects. 
‘‘(B) Operating costs of equipment and fa-
cilities for use in public transportation. 
‘‘(C) Acquisition of public transportation 
services, including service agreements with pri-
vate providers of public transportation services. 
‘‘(2) STATE PROGRAM.—
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‘‘(A) IN GENERAL.—Amounts made avail-
able to carry out this section shall be used for 
projects included in a State program for public 
transportation projects, including service agree-
ments with private providers of public transpor-
tation. 
‘‘(B) SUBMISSION.—The program shall be 
submitted annually to the Secretary for ap-
proval. 
‘‘(C) APPROVAL.—The Secretary may ap-
prove the program only if the Secretary finds 
that the program provides a fair distribution of 
amounts in the State, including Indian reserva-
tions, and the maximum feasible coordination of 
public transportation service assisted under this 
section with transportation service assisted by 
other Federal sources. 
‘‘(3) RURAL
TRANSPORTATION
ASSISTANCE 
PROGRAM.—
‘‘(A) IN
GENERAL.—The Secretary shall 
carry out a rural transportation assistance pro-
gram in other than urbanized areas. 
‘‘(B) GRANTS AND CONTRACTS.—In car-
rying out this paragraph, the Secretary may use 
not more than 2 percent of the amount made
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available to carry out this section to make 
grants and contracts for transportation re-
search, technical assistance, training, and re-
lated support services in other than urbanized 
areas. 
‘‘(C) PROJECTS OF A NATIONAL SCOPE.—
Not more than 15 percent of the amounts avail-
able under subparagraph (B) may be used by 
the Secretary to carry out projects of a national 
scope, with the remaining balance provided to 
the States.’’. 
(c) APPORTIONMENTS.—Section 5311(c) is amended 
to read as follows: 
‘‘(c) APPORTIONMENTS.—
‘‘(1) IN GENERAL.—The Secretary shall appor-
tion amounts made available to carry out this sec-
tion among the States in the ratio that—
‘‘(A) the population of other than urban-
ized areas in each State, as shown by the most 
recent Government decennial census of popu-
lation; bears to 
‘‘(B) the population of all other than ur-
banized areas in the United States, as shown by 
that census.
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‘‘(2) LOW DENSITY ADJUSTMENT.—In admin-
istering the apportionment formula under paragraph 
(1)—
‘‘(A) in the case of a State with a popu-
lation 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 population of such other than urbanized 
areas (as determined using the most recent de-
cennial United States Census); and 
‘‘(B) in the case of a State with a popu-
lation density of more than 10 but equal to or 
fewer than 12 persons per square mile in other 
than urbanized areas of the State, the Sec-
retary shall multiply by a factor of 1.25 the 
population of such other than urbanized areas 
(as determined using the most recent decennial 
United States Census). 
‘‘(3) AVAILABILITY.—The amount apportioned 
to a State under this subsection may be obligated by 
the State for 2 fiscal years after the fiscal year in 
which the amount is apportioned. An amount that is 
not obligated at the end of that period shall be re-
apportioned among the States for the next fiscal 
year.’’.
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(d) USE
FOR ADMINISTRATION, PLANNING, AND 
TECHNICAL ASSISTANCE.—Section 5311(e) is amended—
(1) in the subsection heading by inserting ‘‘, 
planning,’’ after ‘‘administration’’; 
(2) by striking ‘‘(1) The Secretary’’ and insert-
ing ‘‘The Secretary’’; 
(3) by striking paragraph (2); and 
(4) by striking ‘‘recipient’’ and inserting ‘‘sub-
recipient’’. 
(e) INTERCITY
BUS
TRANSPORTATION.—Section 
5311(f) is amended—
(1) in paragraph (1) by striking ‘‘after Sep-
tember 30, 1993,’’; and 
(2) in paragraph (2) by striking ‘‘A State’’ and 
inserting ‘‘After consultation with affected intercity 
bus service providers, a State’’. 
(f) GOVERNMENT’S
SHARE
OF
COSTS.—Section 
5311(g) is amended to read as follows: 
‘‘(g) GOVERNMENT’S SHARE OF COSTS.—
‘‘(1) CAPITAL PROJECTS.—A grant for a capital 
project under this section shall be for 80 percent of 
the net capital costs of the project, as determined by 
the Secretary; except that in the case of a State de-
scribed in section 120(b)(1) of title 23, such percent-
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age shall be increased in accordance with such sec-
tion. 
‘‘(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 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
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or State funds to be used for transportation pur-
poses. 
‘‘(5) 
LIMITATION
ON
OPERATING
ASSIST-
ANCE.—A State carrying out a program of operating 
assistance under this section may not limit the level 
or extent of use of the Government grant for the 
payment of operating expenses.’’. 
(g) RELATIONSHIP TO OTHER LAWS.—Section 5311 
is amended—
(1) by striking subsection (h); and 
(2) by redesignating subsections (i) and (j) as 
subsections (h) and (i), respectively. 
(h) CORRECTION TO CHAPTER ANALYSIS.—The anal-
ysis for chapter 53 is amended by striking the item relat-
ing to section 5311 and inserting the following:
‘‘5311. Formula grants for other than urbanized areas.’’.
SEC. 3013. RESEARCH, DEVELOPMENT, DEMONSTRATION, 
AND DEPLOYMENT PROJECTS. 
(a) IN GENERAL.—Section 5312 is amended—
(1) in subsection (a)—
(A) by striking the first parenthetical 
phrase; 
(B) by striking ‘‘or contracts’’ and insert-
ing ‘‘, contracts, cooperative agreements, or 
other transactions’’;
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(C) by striking ‘‘help reduce urban trans-
portation needs, improve mass transportation 
service,’’ and inserting ‘‘improve transportation 
service’’; 
(D) by striking ‘‘urban’’ each place it ap-
pears; and 
(E) 
by 
striking 
‘‘and 
demonstration 
projects’’ and inserting ‘‘, demonstration or de-
ployment projects, or evaluation of technology 
of national significance’’; 
(2) by striking subsections (b) and (c); 
(3) by redesignating subsections (d) and (e) as 
subsections (b) and (c), respectively; 
(4) in subsection (b)(2) (as so redesignated) by 
striking ‘‘other agreements’’ and inserting ‘‘other 
transactions’’; and 
(5) in subsection (c)(2) (as so redesignated) by 
striking ‘‘public and’’ and inserting ‘‘public or’’. 
(b) CONFORMING AMENDMENTS.—
(1) 
SECTION
HEADING.—Section 
5312 
is 
amended by striking the section heading and insert-
ing the following:
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‘‘§ 5312. Research, development, demonstration, and 
deployment projects’’. 
(2) CHAPTER
ANALYSIS.—The analysis for 
chapter 53 is amended by striking the item relating 
to section 5312 and inserting the following:
‘‘5312. Research, development, demonstration, and deployment projects.’’.
SEC. 3014. COOPERATIVE RESEARCH PROGRAM. 
(a) IN GENERAL.—Section 5313 is amended—
(1) in subsection (a) by striking ‘‘(1) The 
amounts made available under paragraphs (1) and 
(2)(C)(ii) of section 5338(d) of this title’’ and insert-
ing ‘‘The amounts made available under paragraphs 
(1)(C)(iv) and (2)(C) of section 5338(d)’’; 
(2) by striking subsection (b); 
(3) in subsection (a)(2) by striking ‘‘(2) The’’ 
and inserting ‘‘(b) FEDERAL ASSISTANCE.—The’’; 
and 
(4) in subsection (c) by striking ‘‘subsection (a) 
of’’. 
(b) CONFORMING AMENDMENTS.—
(1) IN GENERAL.—Section 5313 is amended by 
striking the section heading and inserting the fol-
lowing:
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‘‘§ 5313. Cooperative research program’’. 
(2) CHAPTER
ANALYSIS.—The analysis for 
chapter 53 is amended by striking the item relating 
to section 5313 and inserting the following:
‘‘5313. Cooperative research program.’’.
SEC. 3015. NATIONAL RESEARCH AND TECHNOLOGY PRO-
GRAMS. 
(a) IN GENERAL.—Section 5314 is amended—
(1) by striking the section heading and insert-
ing the following: 
‘‘§ 5314. National research and technology programs’’; 
(2) in subsection (a)(1)—
(A) by striking ‘‘subsections (d) and (h)(7) 
of section 5338 of this title’’ and inserting ‘‘sec-
tion 5338(d)’’; 
(B) by striking ‘‘and contracts’’ and insert-
ing ‘‘, contracts, cooperative agreements, or 
other transactions’’; 
(C) by striking ‘‘5303–5306,’’; and 
(D) by striking ‘‘5317,’’; 
(3) in subsection (a)(2) by striking ‘‘Of the 
amounts’’ and all that follows through ‘‘$3,000,000 
to’’ and inserting ‘‘The Secretary shall’’; 
(4) by striking subsection (a)(4)(B); 
(5) by redesignating subsection (a)(4)(C) as 
subsection (a)(4)(B); and
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(6) in subsection (b) by striking ‘‘or contract’’ 
and all that follows through ‘‘section,’’ and inserting 
‘‘, contract, cooperative agreement, or other trans-
action under subsection (a) or section 5312,’’. 
(b) CONFORMING AMENDMENT.—The analysis for 
chapter 53 is amended by striking the item relating to 
section 5314 and inserting the following:
‘‘5314. National research and technology programs.’’.
SEC. 3016. NATIONAL TRANSIT INSTITUTE. 
Section 5315 is amended—
(1) in subsection (a) by striking ‘‘public mass 
transportation’’ and inserting ‘‘public transpor-
tation’’; and 
(2) in subsection (d) by striking ‘‘mass’’ each 
place it appears. 
SEC. 3017. JOB ACCESS AND REVERSE COMMUTE FORMULA 
GRANTS. 
(a) IN GENERAL.—Chapter 53 is amended by insert-
ing after section 5315 the following: 
‘‘§ 5316. Job access and reverse commute formula 
grants 
‘‘(a) DEFINITIONS.—In this section, the following 
definitions apply: 
‘‘(1) ACCESS TO JOBS PROJECT.—The term ‘ac-
cess to jobs project’ means a project relating to the 
development and maintenance of transportation
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services designed to transport welfare recipients and 
eligible low-income individuals to and from jobs and 
activities related to their employment, including—
‘‘(A) transportation projects to finance 
planning, capital, and operating costs of pro-
viding access to jobs under this chapter; 
‘‘(B) promoting public transportation by 
low-income workers, including the use of public 
transportation by workers with nontraditional 
work schedules; 
‘‘(C) promoting the use of transit vouchers 
for welfare recipients and eligible low-income in-
dividuals; and 
‘‘(D) promoting the use of employer-pro-
vided transportation, including the transit pass 
benefit program under section 132 of the Inter-
nal Revenue Code of 1986. 
‘‘(2) ELIGIBLE LOW-INCOME INDIVIDUAL.—The 
term ‘eligible low-income individual’ means an indi-
vidual whose family income is at or below 150 per-
cent of the poverty line (as that term is defined in 
section 673(2) of the Community Services Block 
Grant Act (42 U.S.C. 9902(2)), including any revi-
sion required by that section) for a family of the size 
involved.
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‘‘(3) 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. 
‘‘(4) REVERSE COMMUTE PROJECT.—The term 
‘reverse commute project’ means a public transpor-
tation project designed to transport residents of ur-
banized areas and other than urbanized areas to 
suburban employment opportunities, including any 
projects to—
‘‘(A) subsidize the costs associated with 
adding reverse commute bus, train, carpool, van 
routes, or service from urbanized areas and 
other than urbanized areas to suburban work-
places; 
‘‘(B) subsidize the purchase or lease by a 
nonprofit organization or public agency of a van 
or bus dedicated to shuttling employees from 
their residences to a suburban workplace; or 
‘‘(C) otherwise facilitate the provision of 
public transportation services to suburban em-
ployment opportunities. 
‘‘(5) SUBRECIPIENT.—The term ‘subrecipient’ 
means a State or local governmental authority, non-
profit organization, or operator of public transpor-
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tation services that receives a grant under this sec-
tion indirectly through a recipient. 
‘‘(6) WELFARE RECIPIENT.—The term ‘welfare 
recipient’ means an individual who has received as-
sistance under a State or tribal program funded 
under part A of title IV of the Social Security Act 
at any time during the 3-year period before the date 
on which the applicant applies for a grant under this 
section. 
‘‘(b) GENERAL AUTHORITY.—
‘‘(1) 
GRANTS.—The 
Secretary 
may 
make 
grants under this section to a recipient for access to 
jobs and reverse commute projects carried out by the 
recipient or a subrecipient. 
‘‘(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-
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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 eligible low-income 
individuals and welfare recipients in each 
such urbanized area; bears to 
‘‘(ii) the number of eligible low-income 
individuals and welfare recipients 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 eligible low-income 
individuals and welfare recipients in urban-
ized areas with a population of less than 
200,000 in each State; bears to 
‘‘(ii) the number of eligible low-income 
individuals and welfare recipients in urban-
ized areas with a population 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 eligible low-income 
individuals and welfare recipients in other 
than urbanized areas in each State; bears 
to
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‘‘(ii) the number of eligible low-income 
individuals and welfare recipients in other 
than urbanized areas in all States. 
‘‘(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) EXCEPTIONS.—A State may use funds ap-
portioned under paragraphs (1)(B) and (1)(C)—
‘‘(A) for projects serving areas other than 
the area specified in paragraph (2)(B) or 
(2)(C), as the case may be, if the Governor of 
the State certifies that all of the objectives of 
this section are being met in the specified area; 
or