H. R. 3—435
‘‘(B) PROJECTS RECEIVING LESS THAN $25,000,000 IN FED-
ERAL ASSISTANCE.—If the assistance provided under this 
section with respect to a new fixed guideway capital project 
is less than $25,000,000, the requirements of this sub-
section shall not apply to the project until such date as 
the final regulation to be issued under paragraph (9) takes 
effect. 
‘‘(2) SELECTION CRITERIA.—The Secretary may provide Fed-
eral assistance under this subsection 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 public transpor-
tation 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 evaluating a project 
under paragraph (2)(A), the Secretary shall analyze and con-
sider the results of planning 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 con-
sistent 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 revenue service; 
‘‘(C) determine the degree to which the project will 
have a positive effect on local economic development; 
‘‘(D) consider the reliability of the forecasting methods 
used to estimate costs and ridership associated with the 
project; and 
‘‘(E) consider other factors that the Secretary deter-
mines appropriate to carry out this subsection. 
‘‘(5) LOCAL FINANCIAL COMMITMENT.—
‘‘(A) IN GENERAL.—For purposes of paragraph (2)(C), 
the Secretary shall require that each proposed local source 
of capital and operating financing is stable, reliable, and 
available within the proposed project timetable. 
‘‘(B) CONSIDERATION OF FISCAL CAPACITY OF STATE AND 
LOCAL GOVERNMENTS.—If the Secretary gives priority to 
financing projects under this subsection that include more 
than the non-Federal share required under subsection (h), 
the Secretary shall give equal consideration to differences 
in the fiscal capacity of State and local governments. 
‘‘(6) ADVANCEMENT
OF
PROJECT
TO
DEVELOPMENT
AND 
CONSTRUCTION.—
‘‘(A) GENERAL RULE.—A proposed project under this 
subsection may advance from planning and alternatives 
analysis to project development and construction only if 
the Secretary finds that the project meets the requirements 
of this subsection and there is a reasonable likelihood that 
the project will continue to meet such requirements. 
‘‘(B) EVALUATION.—In making the findings under 
subparagraph (A), the Secretary shall evaluate and rate 
the project as high, medium-high, medium, medium-low,
H. R. 3—436
or low based on the results of the analysis of the project 
justification criteria and the degree of local financial 
commitment, as required by this subsection. 
‘‘(7) CONTENTS OF PROJECT CONSTRUCTION GRANT AGREE-
MENT.—A project construction grant agreement under this sub-
section 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 subsection, the proposed 
schedule for obligation of future Federal grants, and the sources 
of funding from other than the Government. The agreement 
may include a commitment on the part of the Secretary to 
provide funding for the project in future fiscal years. 
‘‘(8) LIMITATION
ON
ENTRY
INTO
CONSTRUCTION
GRANT 
AGREEMENT.—The Secretary may enter into a project construc-
tion grant agreement for a project under this subsection only 
if the project is authorized for construction and has been rated 
as high, medium-high, or medium under this subsection. 
‘‘(9) REGULATIONS.—Not later than 240 days after the date 
of enactment of the Federal Public Transportation Act of 2005, 
the Secretary shall issue regulations establishing an evaluation 
and rating process for proposed projects under this subsection 
that is based on the results of project justification and local 
financial commitment, as required under this subsection. 
‘‘(10) FIXED
GUIDEWAY
CAPITAL
PROJECT.—In this sub-
section, the term ‘fixed guideway capital project’ includes a 
corridor-based bus capital project if—
‘‘(A) a substantial portion of the project operates in 
a separate right-of-way dedicated for public transit use 
during peak hour operations; or 
‘‘(B) the project represents a substantial investment 
in a defined corridor as demonstrated by features such 
as park-and-ride lots, transit stations, bus arrival and 
departure signage, intelligent transportation systems tech-
nology, traffic signal priority, off-board fare collection, 
advanced bus technology, and other features that support 
the long-term corridor investment. 
‘‘(11) IMPACT REPORT.—
‘‘(A) IN GENERAL.—Not later than 120 days after the 
date of enactment of the Federal Public Transportation 
Act of 2005, the Federal Transit Administration shall 
submit to the Committee on Banking, Housing, and Urban 
Affairs of the Senate and the Committee on Transportation 
and Infrastructure of the House of Representatives a report 
on the methodology to be used in evaluating the land 
use and economic development impacts of non-fixed guide-
way or partial fixed guideway projects. 
‘‘(B) CONTENTS.—The report submitted under subpara-
graph (A) shall address any qualitative and quantitative 
differences between fixed guideway and non-fixed guideway 
projects with respect to land use and economic development 
impacts. 
‘‘(f) PREVIOUSLY ISSUED LETTER OF INTENT OR FULL FUNDING 
GRANT AGREEMENT.—Subsections (d) and (e) 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 Federal Public Transportation Act of 2005. Subsection (e)
H. R. 3—437
also does not apply to projects for which the Secretary has received 
an application for final design before such date of enactment. 
‘‘(g) LETTERS OF INTENT, FULL FUNDING GRANT AGREEMENTS, 
AND EARLY SYSTEMS WORK AGREEMENTS.—
‘‘(1) LETTERS OF INTENT.—
‘‘(A) AMOUNTS INTENDED TO BE OBLIGATED.—The Sec-
retary may issue a letter of intent to an applicant 
announcing an intention to obligate, for a capital project 
under this section, an amount from future available budget 
authority specified in law that is not more than the amount 
stipulated as the financial participation 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 letter 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 administrative 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 participation by the 
Government in a project under this section; 
‘‘(ii) establish the maximum amount of Govern-
ment financial assistance for the project; 
‘‘(iii) cover the period of time for completing the 
project, including a period extending beyond the period 
of an authorization; and 
‘‘(iv) make timely and efficient management of the 
project easier according to the law of the United States. 
‘‘(B) SPECIAL FINANCIAL RULES.—
‘‘(i) IN GENERAL.—A full funding grant agreement 
under this paragraph obligates an amount of available 
budget authority specified in law and may include 
a commitment, contingent on amounts to be specified 
in law in advance for commitments under this para-
graph, to obligate an additional amount from future 
available budget authority specified in law. 
‘‘(ii) STATEMENT OF CONTINGENT COMMITMENT.—
The agreement shall state that the contingent commit-
ment is not an obligation of the Government. 
‘‘(iii) INTEREST
AND
OTHER
FINANCING
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 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) COMPLETION
OF
OPERABLE
SEGMENT.—The 
amount stipulated in an agreement under this para-
graph for a fixed guideway project shall be sufficient 
to complete at least an operable segment. 
‘‘(C) BEFORE AND AFTER STUDY.—
H. R. 3—438
‘‘(i) IN GENERAL.—A full funding grant agreement 
under this paragraph shall require the applicant to 
conduct a study that—
‘‘(I) describes and analyzes the impacts of the 
new fixed guideway capital project on transit serv-
ices and transit ridership; 
‘‘(II) evaluates the consistency of predicted and 
actual project characteristics and performance; and 
‘‘(III) identifies sources of differences between 
predicted and actual outcomes. 
‘‘(ii) INFORMATION
COLLECTION
AND
ANALYSIS 
PLAN.—
‘‘(I) SUBMISSION OF PLAN.—Applicants seeking 
an agreement under this paragraph shall submit 
a complete plan for the collection and analysis 
of information to identify the impacts of the new 
fixed guideway capital project and the accuracy 
of the forecasts prepared during the development 
of the project. Preparation of this plan shall be 
included in the full funding grant agreement as 
an eligible activity. 
‘‘(II) CONTENTS OF PLAN.—The plan submitted 
under subclause (I) shall provide for—
‘‘(aa) the collection of data on the current 
transit system regarding transit service levels 
and ridership patterns, including origins and 
destinations, access modes, trip purposes, and 
rider characteristics; 
‘‘(bb) documentation of the predicted 
scope, service levels, capital costs, operating 
costs, and ridership of the project; 
‘‘(cc) collection of data on the transit 
system 2 years after the opening of the new 
fixed guideway capital project, including 
analogous information on transit service levels 
and ridership patterns and information on the 
as-built scope and capital costs of the project; 
and 
‘‘(dd) analysis of the consistency of pre-
dicted project characteristics with the after 
data. 
‘‘(D) COLLECTION OF DATA ON CURRENT SYSTEM.—To 
be eligible for a full funding grant agreement under this 
paragraph, recipients shall have collected data on the cur-
rent system, according to the plan required, before the 
beginning of construction of the proposed new start project. 
Collection of this data shall be included in the full funding 
grant agreement as an eligible activity. 
‘‘(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 National 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
H. R. 3—439
‘‘(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 procure-
ment of system elements for which specifications are 
decided, and other activities the Secretary decides are 
appropriate to make efficient, long-term project 
management easier. 
‘‘(ii) PERIOD COVERED.—A work agreement under 
this paragraph shall cover the period of time the Sec-
retary considers appropriate. The period may extend 
beyond the period of current authorization. 
‘‘(iii) INTEREST
AND
OTHER
FINANCING
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 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 control 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 AUTHORITY.—The total estimated amount of 
future obligations of the Government and contingent 
commitments to incur obligations covered by all out-
standing letters of intent, full funding grant agreements, 
and early systems work agreements under this subsection 
for major new fixed guideway capital projects may be not 
more than the greater of the amount authorized under 
sections 5338(a)(3) and 5338(c) for such projects or an 
amount equivalent to the last 3 fiscal years of funding 
allocated under subsections (m)(1)(A) and (m)(2)(A)(ii) 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 a letter 
or agreement. The total amount covered by new letters 
and contingent commitments included in full funding grant 
agreements 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 contingent commitments to incur obliga-
tions covered by all project construction grant agreements
H. R. 3—440
and early system work agreements under this subsection 
for small capital projects described in subsection (e) may 
be not more than the greater of the amount allocated 
under subsection (m)(2)(A)(i) for such projects or an amount 
equivalent to the last fiscal year of funding allocated under 
such subsection for such projects, less an amount the Sec-
retary 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 contin-
gent commitments included in project construction grant 
agreements and early systems work agreements for such 
projects may be not more than a limitation specified in 
law. 
‘‘(C) INCLUSION
OF
CERTAIN
COMMITMENTS.—Future 
obligations of the Government and contingent commitments 
made against the contingent commitment authority under 
section 3032(g)(2) of the Intermodal Surface Transportation 
Efficiency Act of 1991 (106 Stat. 2125) for the San Francisco 
BART to the Airport project for fiscal years 2002, 2003, 
2004, 2005, and 2006 shall be charged against section 
3032(g)(2) of that Act. 
‘‘(D) APPROPRIATION REQUIRED.—An obligation may be 
made under this subsection only when amounts are appro-
priated for the obligation. 
‘‘(5) NOTIFICATION OF CONGRESS.—At least 60 days before 
issuing a letter of intent or entering into a full funding grant 
agreement or project construction grant agreement under this 
section, the Secretary shall notify, in writing, the Committees 
on Transportation and Infrastructure and Appropriations of 
the House of Representatives and the Committees on Banking, 
Housing, and Urban Affairs and Appropriations of the Senate 
of the proposed letter or agreement. The Secretary shall include 
with the notification a copy of the proposed letter or agreement 
as well as the evaluations and ratings for the project. 
‘‘(h) GOVERNMENT’S SHARE OF NET PROJECT COST.—
‘‘(1) IN GENERAL.—Based on engineering studies, studies 
of economic feasibility, and information 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) ADJUSTMENT FOR COMPLETION UNDER BUDGET.—The 
Secretary may adjust the final net project cost of a new fixed 
guideway capital project evaluated under subsections (d) and 
(e) to include the cost of eligible activities not included in 
the originally defined project if the Secretary determines that 
the originally defined project has been completed at a cost 
that is significantly below the original estimate. 
‘‘(3) MAXIMUM GOVERNMENT SHARE.—The Secretary may 
provide a higher grant percentage than requested by the grant 
recipient if—
‘‘(A) the Secretary determines that the net project cost 
of the project is not more than 10 percent higher than 
the net project cost estimated at the time the project was 
approved for advancement into preliminary engineering; 
and
H. R. 3—441
‘‘(B) the ridership estimated for the project is not less 
than 90 percent of the ridership estimated for the project 
at the time the project was approved for advancement 
into preliminary engineering. 
‘‘(4) REMAINDER
OF
NET
PROJECT
COST.—The remainder 
of net project costs shall be provided from an undistributed 
cash surplus, a replacement or depreciation cash fund or 
reserve, or new capital. 
‘‘(5) LIMITATION
ON
STATUTORY
CONSTRUCTION.—Nothing 
in this section, including paragraph (1) and subsections 
(d)(4)(B)(v) and (e)(5), 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. 
‘‘(6) SPECIAL RULE FOR ROLLING STOCK COSTS.—In addition 
to amounts allowed pursuant to paragraph (1), a planned exten-
sion to a fixed guideway system may include the cost of rolling 
stock previously purchased if the applicant satisfies the Sec-
retary that only amounts other than amounts of the Govern-
ment were used and that the purchase was made for use 
on the extension. A refund or reduction of the remainder may 
be made only if a refund of a proportional amount of the 
grant of the Government is made at the same time. 
‘‘(7) 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 Federal Public Transportation Act of 2005. 
‘‘(i) 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 govern-
mental 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 requirements 
if—
‘‘(A) the State or local governmental authority applies 
for the payment; 
‘‘(B) the Secretary approves the payment; and 
‘‘(C) before carrying out the part of the project, the 
Secretary approves the plans and specifications for the 
part in the same way as other projects under this section. 
‘‘(2) FINANCING COSTS.—
‘‘(A) IN GENERAL.—The cost of carrying out part of 
a project includes the amount of interest earned and pay-
able 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
INTEREST.—The 
amount of interest under this paragraph 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 Secretary, that the applicant 
has shown reasonable diligence in seeking the most favor-
able financial terms. 
‘‘(j) AVAILABILITY OF AMOUNTS.—
‘‘(1) IN GENERAL.—An amount made available or appro-
priated 
under 
section 
5338(a)(3)(C)(iii), 
5338(a)(3)(C)(iv),
H. R. 3—442
5338(b)(2)(E), or 5338(c) 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 fiscal 
year in which the amount is made available or appropriated. 
Any of such amounts that are unobligated at the end of the 
3-fiscal-year period may be used by the Secretary for any pur-
pose under this section. 
‘‘(2) USE OF DEOBLIGATED AMOUNTS.—An amount available 
under this section that is deobligated may be used for any 
purpose under this section. 
‘‘(k) REPORTS ON NEW STARTS.—
‘‘(1) ANNUAL REPORT ON FUNDING RECOMMENDATIONS.—Not 
later than the first Monday in February of each year, the 
Secretary shall submit to the Committees on Transportation 
and Infrastructure and Appropriations of the House of Rep-
resentatives and the Committees on Banking, Housing, and 
Urban Affairs and Appropriations 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 sub-
sections (d) and (e), for each such project that is authorized 
by the Federal Public Transportation 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 based on information currently available 
to the Secretary. 
‘‘(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 proc-
esses and procedures; and 
‘‘(B) report to Congress on the results of such review 
by May 31 of each year. 
‘‘(l) OTHER REPORTS.—
‘‘(1) BEFORE AND AFTER STUDY REPORTS.—Not later than 
the first Monday of August of each year, the Secretary shall 
submit to the committees referred to in subsection (k)(1) a 
report containing a summary of the results of the studies con-
ducted under subsection (g)(2)(C). 
‘‘(2) CONTRACTOR PERFORMANCE ASSESSMENT REPORT.—
‘‘(A) IN GENERAL.—Not later than 180 days after the 
enactment of the Federal Public Transportation Act of 2005, 
and each year thereafter, the Secretary shall submit to 
the committees referred to in subsection (k)(1) a report 
analyzing the consistency and accuracy of cost and rider-
ship estimates made by each contractor to public transpor-
tation agencies developing new fixed guideway capital 
projects. 
‘‘(B) CONTENTS.—The report submitted under subpara-
graph (A) shall compare the cost and ridership estimates
H. R. 3—443
made at the time projects are approved for entrance into 
preliminary engineering with—
‘‘(i) estimates made at the time projects are 
approved for entrance into final design; 
‘‘(ii) costs and ridership when the project com-
mences revenue operation; and 
‘‘(iii) costs and ridership when the project has been 
in operation for 2 years. 
‘‘(C) CONSIDERATIONS.—In making comparisons under 
subparagraph (B), the Secretary shall consider factors 
having an impact on costs and ridership not under the 
control of the contractor. The Secretary shall also consider 
the role taken by each contractor in the development of 
the project. 
‘‘(3) CONTRACTOR PERFORMANCE INCENTIVE REPORT.—Not 
later than 180 days after the enactment of the Federal Public 
Transportation Act of 2005, the Secretary shall submit to the 
committees referred to in subsection (k)(1) a report on the 
suitability of allowing contractors to public transportation agen-
cies that undertake new fixed guideway capital projects under 
this section to receive performance incentive awards if a project 
is completed for less than the original estimated cost. 
‘‘(m) ALLOCATING AMOUNTS.—
‘‘(1) FISCAL YEAR 2005.—Of the amounts made available 
or appropriated for fiscal year 2005 under section 5338(a)(3)—
‘‘(A) $1,437,829,600 shall be allocated for new fixed 
capital projects under subsection (d); 
‘‘(B) $1,204,684,800 shall be allocated for capital 
projects for fixed guideway modernization; and 
‘‘(C) $669,600,000 shall be allocated for capital projects 
for buses and bus-related equipment and facilities. 
‘‘(2) FISCAL YEARS 2006 THROUGH 2009.—The amounts made 
available or appropriated for fiscal years 2006 through 2009 
under sections 5338(b) and 5338(c) shall be allocated as follows: 
‘‘(A) MAJOR
CAPITAL
INVESTMENT
GRANTS.—Of the 
amounts appropriated under section 5338(c)—
‘‘(i) $200,000,000 for each of fiscal years 2007 
through 2009 shall be allocated for projects for new 
fixed guideway capital projects of less than $75,000,000 
in accordance with subsection (e); and 
‘‘(ii) the remainder shall be allocated for major 
new fixed guideway capital projects in accordance with 
subsection (d). 
‘‘(B) FIXED GUIDEWAY MODERNIZATION.—The amounts 
made available under section 5338(b)(2)(D) shall be allo-
cated for capital projects for fixed guideway modernization. 
‘‘(C) BUSES AND BUS-RELATED EQUIPMENT AND FACILI-
TIES.—The 
amounts 
made 
available 
under 
section 
5338(b)(2)(E) shall be allocated for capital projects for buses 
and bus-related equipment and facilities. 
‘‘(3) FIXED GUIDEWAY MODERNIZATION.—The amounts made 
available for fixed guideway modernization under section 
5338(b)(2)(D) for fiscal year 2006 and each fiscal year thereafter 
shall be allocated in accordance with section 5337. 
‘‘(4) PRELIMINARY ENGINEERING AND ALTERNATIVES ANAL-
YSIS.—Not more that 8 percent of the allocation described in
H. R. 3—444
paragraph (1)(A) may be expended on alternatives analysis 
and preliminary engineering. 
‘‘(5) PRELIMINARY ENGINEERING.—Not more than 8 percent 
of the allocation described in paragraph (2)(A) may be expended 
on preliminary engineering. 
‘‘(6) FUNDING FOR FERRY BOATS.—Of the amounts described 
in paragraphs (1)(A) and (2)(A)—
‘‘(A) $10,400,000 shall be available in fiscal year 2005 
for capital projects in Alaska and Hawaii for new fixed 
guideway systems and extension projects utilizing ferry 
boats, ferry boat terminals, or approaches to ferry boat 
terminals; 
‘‘(B) $15,000,000 shall be available in each of fiscal 
years 2006 through 2009 for capital projects in Alaska 
and Hawaii for new fixed guideway ferry systems and 
extension projects utilizing ferry boats, ferry boat termi-
nals, or approaches to ferry boat terminals; and 
‘‘(C) $5,000,000 shall be available for each of fiscal 
years 2006 though 2009 for payments to the Denali 
Commission under the terms of section 307(e) of the Denali 
Commission Act of 1998 (42 U.S.C. 3121 note) for docks, 
waterfront development projects, and related transpor-
tation infrastructure. 
‘‘(7) BUS AND BUS FACILITY GRANTS.—The amounts made 
available under paragraphs (1)(C) and (2)(C) shall be allocated 
as follows: 
‘‘(A) FERRY BOAT SYSTEMS.—$10,000,000 shall be avail-
able in each of fiscal years 2006 through 2009 for ferry 
boats or ferry terminal facilities. Of such funds, the fol-
lowing amounts shall be set aside for each fiscal year: 
‘‘(i) $2,500,000 for the San Francisco Water Transit 
Authority. 
‘‘(ii) 
$2,500,000 
for 
the 
Massachusetts 
Bay 
Transportation Authority Ferry System. 
‘‘(iii) $1,000,000 for the Camden, New Jersey Ferry 
System. 
‘‘(iv) $1,000,000 for the Governor’s Island, New 
York Ferry System 
‘‘(v) 
$1,000,000 
for 
the 
Philadelphia 
Penn’s 
Landing Ferry Terminal. 
‘‘(vi) $1,000,000 for the Staten Island Ferry. 
‘‘(vii) $650,000 for the Maine State Ferry Service, 
Rockland. 
‘‘(viii) $350,000 for the Swans Island, Maine Ferry 
Service. 
‘‘(B) FUEL CELL BUS PROGRAM.—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: 
‘‘(i) $11,250,000 for fiscal year 2006. 
‘‘(ii) $11,500,000 for fiscal year 2007. 
‘‘(iii) $12,750,000 for fiscal year 2008. 
‘‘(iv) $13,500,000 for fiscal year 2009. 
‘‘(C) PROJECTS NOT IN URBANIZED AREAS.—Not less than 
5.5 percent shall be available in each fiscal year for projects 
that are not in urbanized areas.
H. R. 3—445
‘‘(D) 
INTERMODAL
TERMINALS.—Not 
less 
than 
$35,000,000 shall be available in each fiscal year for inter-
modal terminal projects, including the intercity bus portion 
of such projects. 
‘‘(E) BUS TESTING.—$3,000,000 shall be available in 
each fiscal year for bus testing under section 5318. 
‘‘(8) BUS
AND
BUS
FACILITY
GRANT
CONSIDERATIONS.—In 
making grants under paragraphs (1)(C) and (2)(C), the Sec-
retary shall consider the age and condition of buses, bus fleets, 
related equipment, and bus-related facilities.’’. 
(b) 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.’’.
(c) PUBLIC-PRIVATE PARTNERSHIP PILOT PROGRAM.—
(1) ESTABLISHMENT.—The Secretary may establish and 
implement a pilot program to demonstrate the advantages and 
disadvantages of public-private partnerships for certain new 
fixed guideway capital projects. 
(2) LIMITATION ON THE NUMBER OF FACILITIES.—The Sec-
retary may permit the establishment of 3 public-private part-
nerships for new fixed guideway capital projects. 
(3) ELIGIBILITY.—To be eligible to participate in the public-
private partnership program, a recipient shall submit to the 
Secretary an application that contains, at a minimum, the 
following: 
(A) An identification of the new fixed guideway capital 
project that has not entered into a full funding grant agree-
ment or project construction grant agreement with the 
Federal Transit Administration. 
(B) A schedule and finance plan for the construction 
of and operation of the proposed project. 
(C) An analysis of the costs, benefits, and efficiencies 
of the proposed public-private partnership agreement. 
(4) SELECTION CRITERIA.—The Secretary may approve the 
application of a recipient under this subsection if the Secretary 
determines that—
(A) State and local laws permit public-private agree-
ments for all phases of project development, construction, 
and operation of the project; 
(B) the recipient is unable to advance the project due 
to fiscal constraints; and 
(C) the plan implementing the public-private partner-
ship is justified. 
(5) PROGRAM
TERM.—The Secretary may approve an 
application of a recipient for a public-private partnership for 
fiscal years 2006 through 2009. 
(6) REPORT TO CONGRESS.—Not later than 2 years 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 Banking, 
Housing, and Urban Affairs of the Senate, a report containing 
an assessment of the costs, benefits, and efficiencies of a public-
private partnership program for new fixed guideway capital 
projects.
H. R. 3—446
(d) RESTRICTIONS ON USE OF BUS CATEGORY FUNDS FOR FIXED 
GUIDEWAY PROJECTS.—Funds provided to grantees under the bus 
and bus facility category for fixed guideway ferry and gondola 
projects in the Department of Transportation and Related Agencies 
Appropriations Acts for any of fiscal years 1998 through 2005, 
or accompanying committee reports, that remain available and 
unobligated may be used for new fixed guideway capital projects 
under section 5309 of title 49, United States Code. Funds made 
available to the same grantees for similar projects under the bus 
and bus facility category of section 5309 of title 49, United States 
Code, in fiscal years 2006 through 2009 may be used for fixed 
guideway projects under that section. 
(e) MIAMI METRORAIL.—The Secretary shall credit funds pro-
vided by the Florida department of transportation for the extension 
of the Miami Metrorail System from Earlington Heights to the 
Miami Intermodal Center to satisfy the matching requirements 
of section 5309(h)(4) of title 49, United Stated Code, for the Miami 
North Corridor and Miami East-West Corridor projects. 
(f) ADJUSTMENTS.—The adjustments made in the Federal 
Transit Administrator’s Dear Colleague letter of April 29, 2005, 
to require a ‘‘medium’’ for the cost-effectiveness rating, in order 
for fixed guideway projects to be recommended for funding by 
the Federal Transit Administration, shall not apply to the following: 
(1) San Francisco Muni—Third Street LRT Phase I/II. 
(2) Santa Clara Valley Transit Authority—Silicon Valley 
Rapid Transit Corridor. 
(3) Washington County, Oregon—Wilsonville to Beaverton 
Commuter Rail. 
(4) Dulles Corridor Metrorail Project—Extension to Wiehle 
Avenue. 
SEC. 3012. FORMULA GRANTS FOR SPECIAL NEEDS OF ELDERLY 
INDIVIDUALS AND INDIVIDUALS WITH DISABILITIES. 
(a) IN GENERAL.—Section 5310 is amended to read as follows: 
‘‘§ 5310. Formula grants for special needs of elderly individ-
uals and individuals with disabilities 
‘‘(a) GENERAL AUTHORITY.—
‘‘(1) GRANTS.—The Secretary may make grants to States 
and local governmental authorities under this section for public 
transportation capital projects planned, designed, and carried 
out to meet the special needs of elderly individuals and individ-
uals with disabilities. 
‘‘(2) SUBRECIPIENTS.—A State that receives a grant under 
this section may allocate the amounts provided under the grant 
to—
‘‘(A) a private nonprofit organization, if the public 
transportation service provided under paragraph (1) is 
unavailable, insufficient, or inappropriate; or 
‘‘(B) a governmental authority that—
‘‘(i) is approved by the State to coordinate 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).
H. R. 3—447
‘‘(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 govern-
mental authority may use not more than 10 percent of the 
amounts apportioned to the State under this section to admin-
ister, plan, and provide technical assistance for a project funded 
under this section. 
‘‘(b) APPORTIONMENT AND TRANSFERS.—
‘‘(1) FORMULA.—The Secretary shall apportion amounts 
made available to carry out this section under a formula the 
Secretary administers that considers the number of elderly 
individuals and individuals with disabilities in each State. 
‘‘(2) TRANSFER OF FUNDS.—Any funds apportioned to a State 
under paragraph (1) may be transferred by the State to the 
apportionments made under sections 5311(c) and 5336 if such 
funds are only used for eligible projects selected under this 
section. 
‘‘(c) GOVERNMENT’S SHARE OF COSTS.—
‘‘(1) CAPITAL PROJECTS.—
‘‘(A) IN GENERAL.—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. 
‘‘(B) EXCEPTION.—A State described in section 120(b) 
of title 23 shall receive an increased Government share 
in accordance with the formula under that section. 
‘‘(2) REMAINDER.—The remainder of the net project costs—
‘‘(A) may be provided from an undistributed cash sur-
plus, a replacement or depreciation cash fund or reserve, 
a service agreement with a State or local social service 
agency or a private social service organization, or new 
capital; 
‘‘(B) may be derived from amounts appropriated or 
otherwise made available to a department or agency of 
the Government (other than the Department of Transpor-
tation) that are eligible to be expended for transportation; 
and 
‘‘(C) notwithstanding subparagraph (B), may be derived 
from amounts made available to carry out the Federal 
lands highway program established by section 204 of title 
23. 
‘‘(3) USE OF CERTAIN FUNDS.—For purposes of paragraph 
(2)(B), the prohibitions on the use of funds for matching require-
ments 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 purposes. 
‘‘(d) GRANT REQUIREMENTS.—
‘‘(1) IN GENERAL.—A grant under this section shall be sub-
ject to all requirements of a grant under section 5307 to the 
extent the Secretary determines appropriate. 
‘‘(2) CERTIFICATION REQUIREMENTS.—
‘‘(A) FUND TRANSFERS.—A grant recipient under this 
section that transfers funds to a project funded under sec-
tion 5336 in accordance with subsection (b)(2) shall certify 
that the project for which the funds are requested has
H. R. 3—448
been coordinated with private nonprofit providers of serv-
ices under this section. 
‘‘(B) PROJECT SELECTION AND PLAN DEVELOPMENT.—
Beginning in fiscal year 2007, each grant recipient under 
this section shall certify that—
‘‘(i) the projects selected were derived from a locally 
developed, coordinated public transit-human services 
transportation plan; and 
‘‘(ii) 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. 
‘‘(C) ALLOCATIONS
TO
SUBRECIPIENTS.—Each grant 
recipient under this section shall certify that allocations 
of the grant to subrecipients, if any, are distributed on 
a fair and equitable basis. 
‘‘(e) STATE PROGRAM OF PROJECTS.—
‘‘(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 disabilities that are included in a State pro-
gram of projects. 
‘‘(2) SUBMISSION AND APPROVAL.—A State shall submit to 
the Secretary annually for approval a program of projects. 
The program shall contain an assurance that the program 
provides for maximum feasible coordination of transportation 
services assisted under this section with transportation services 
assisted by other Government sources. 
‘‘(f) LEASING VEHICLES.—Vehicles acquired under this section 
may be leased to local governmental authorities to improve 
transportation services designed to meet the special needs of elderly 
individuals and individuals with disabilities. 
‘‘(g) MEAL DELIVERY
FOR HOMEBOUND INDIVIDUALS.—Public 
transportation service providers receiving assistance under this sec-
tion or section 5311(c) may coordinate and assist in regularly pro-
viding meal delivery service for homebound individuals if the 
delivery service does not conflict with providing public transpor-
tation service or reduce service to public transportation passengers. 
‘‘(h) TRANSFERS OF FACILITIES AND EQUIPMENT.—With the con-
sent of the recipient in possession of a facility or equipment acquired 
with a grant under this section, a State may transfer the facility 
or equipment to any recipient eligible to receive assistance under 
this chapter if the facility or equipment will continue to be used 
as required under this section.’’. 
(b) ELDERLY INDIVIDUALS AND INDIVIDUALS WITH DISABILITIES 
PILOT PROGRAM.—
(1) IN GENERAL.—In fiscal year 2006, the Secretary shall 
establish a pilot program that will allow Wisconsin, Alaska, 
Minnesota, Oregon, and 3 other States selected by the Secretary 
to use not more than 33 percent of the funds apportioned 
to each State to carry out section 5310 of title 49, United 
States Code, for operating costs associated with public transpor-
tation projects planned, designed, and carried out to meet the 
special needs of elderly individuals and individuals with disabil-
ities under such section. The Secretary may base the selection 
of participating States on a State’s exemplary coordination 
of public transit-human services transportation. The Secretary