H. R. 3—449
may require participants to collect data necessary to support 
the report to Congress required by paragraph (7). 
(2) PLANNING
COORDINATION.—Recipients of funds made 
available consistent with this subsection 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 participa-
tion by the public. 
(3) GOVERNMENT’S SHARE OF COSTS.—Operating assistance 
under this subsection may not exceed 50 percent of the net 
operating costs of the project, as determined by the Secretary. 
The credit for any non-Federal share provided under this sub-
section shall not reduce nor replace State funds required to 
match Federal funds for formula grants for the special needs 
of elderly individuals and individuals with disabilities program 
authorized under section 5310 of title 49, United States Code. 
(4) 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; and 
(B) may be derived from amounts appropriated to or 
made available to a department or agency of the Govern-
ment (other than the Department of Transportation) that 
are eligible to be expended for transportation. 
(5) USE OF CERTAIN FUNDS.—For purposes of paragraph 
(4)(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. 
(6) ELIGIBLE ACTIVITIES.—Projects eligible under the pilot 
program may include the collection of data necessary to support 
the report to Congress required by paragraph (7). 
(7) REPORT.—Not later than 2 years after the date of enact-
ment of this Act, the Secretary shall transmit to the Committee 
on Transportation and Infrastructure of the House of Rep-
resentatives and the Committee on Banking, Housing, and 
Urban Affairs of the Senate a report on the pilot program, 
which may include—
(A) the extent to which funds were used to subsidize 
existing paratransit service provided in compliance with 
the Americans with Disabilities Act of 1990; 
(B) whether States participating in the pilot program 
use the funds to provide services to persons with disabilities 
that exceed those services required by the Americans with 
Disabilities Act of 1990 differently than States not in the 
pilot program; 
(C) whether States participating in this pilot program 
use the funds to provide services to individuals with disabil-
ities that exceed those services required by the Americans 
with Disabilities Act of 1990 to the detriment of other 
eligible projects;
H. R. 3—450
(D) the percentage of funds used to assist elderly 
individuals; 
(E) the percentage of funds used to assist individuals 
with disabilities; 
(F) the extent to which States participating in this 
pilot program serve a wider range of elderly, low income, 
and persons with disabilities populations; 
(G) whether the pilot program improves services to 
elderly individuals and individuals with disabilities; 
(H) the extent to which States participating in the 
pilot program were able to expand the range of transpor-
tation alternatives available to elderly individuals and 
individuals with disabilities; and 
(I) whether the pilot program facilitates or discourages 
coordination with or integration of other funding sources. 
(8) SUNSET.—This subsection shall cease to be effective 
on September 30, 2009. 
(c) CHAPTER ANALYSIS.—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. 3013. FORMULA GRANTS FOR OTHER THAN URBANIZED AREAS. 
(a) DEFINITIONS.—Section 5311(a) is amended to read as fol-
lows: 
‘‘(a) DEFINITIONS.—As used in this section, the following defini-
tions shall apply: 
‘‘(1) RECIPIENT.—The term ‘recipient’ means a State or 
Indian tribe that receives a Federal transit program grant 
directly from the Federal Government. 
‘‘(2) SUBRECIPIENT.—The term ‘subrecipient’ means a State 
or local governmental authority, a nonprofit organization, or 
an operator of public transportation or intercity bus service 
that receives Federal transit program grant funds indirectly 
through a recipient.’’. 
(b) GENERAL AUTHORITY.—Section 5311(b) is amended to read 
as follows: 
‘‘(b) GENERAL AUTHORITY.—
‘‘(1) GRANTS
AUTHORIZED.—Except as provided by para-
graph (2), the Secretary may award grants under this section 
to recipients located in areas other than urbanized areas for—
‘‘(A) public transportation capital projects; 
‘‘(B) operating costs of equipment and facilities for 
use in public transportation; and 
‘‘(C) the acquisition of public transportation services, 
including service agreements with private providers of 
public transportation services. 
‘‘(2) STATE PROGRAM.—
‘‘(A) IN GENERAL.—A project eligible for a grant under 
this section shall be included in a State program for public 
transportation service projects, including agreements with 
private providers of public transportation service. 
‘‘(B) SUBMISSION
TO
SECRETARY.—Each State shall 
submit to the Secretary annually the program described 
in subparagraph (A).
H. R. 3—451
‘‘(C) APPROVAL.—The Secretary may not approve the 
program unless the Secretary determines that—
‘‘(i) the program provides a fair distribution of 
amounts in the State, including Indian reservations; 
and 
‘‘(ii) the program provides 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 program in other than 
urbanized areas. 
‘‘(B) GRANTS
AND
CONTRACTS.—In carrying out this 
paragraph, the Secretary may use not more than 2 percent 
of the amount made available to carry out this section 
to make grants and contracts for transportation research, 
technical assistance, training, and related support services 
in other than urbanized areas. 
‘‘(C) PROJECTS OF A NATIONAL SCOPE.—Not more than 
15 percent of the amounts available 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. 
‘‘(4) DATA COLLECTION.—Each recipient under this section 
shall submit an annual report to the Secretary containing 
information on capital investment, operations, and service pro-
vided with funds received under this section, including—
‘‘(A) total annual revenue; 
‘‘(B) sources of revenue; 
‘‘(C) total annual operating costs; 
‘‘(D) total annual capital costs; 
‘‘(E) fleet size and type, and related facilities; 
‘‘(F) revenue vehicle miles; and 
‘‘(G) ridership.’’. 
(c) APPORTIONMENTS.—Section 5311(c) is amended to read as 
follows: 
‘‘(c) APPORTIONMENTS.—
‘‘(1) PUBLIC TRANSPORTATION ON INDIAN RESERVATIONS.—
Of the amounts made available or appropriated for each fiscal 
year pursuant to subsections (a)(1)(C)(v) and (b)(2)(G) of section 
5338, the following amounts shall be apportioned for grants 
to Indian tribes for any purpose eligible under this section, 
under such terms and conditions as may be established by 
the Secretary: 
‘‘(A) $8,000,000 for fiscal year 2006. 
‘‘(B) $10,000,000 for fiscal year 2007. 
‘‘(C) $12,000,000 for fiscal year 2008. 
‘‘(D) $15,000,000 for fiscal year 2009. 
‘‘(2) REMAINING AMOUNTS.—Of the amounts made available 
or appropriated for each fiscal year pursuant to subsections 
(a)(1)(C)(v) and (b)(2)(G) of section 5338 that are not appor-
tioned under paragraph (1)—
‘‘(A) 20 percent shall be apportioned to the States 
in accordance with paragraph (3); and 
‘‘(B) 80 percent shall be apportioned to the States 
in accordance with paragraph (4).
H. R. 3—452
‘‘(3) APPORTIONMENTS BASED ON LAND AREA IN NONURBAN-
IZED AREAS.—
‘‘(A) IN GENERAL.—Subject to subparagraph (B), each 
State shall receive an amount that is equal to the amount 
apportioned under paragraph (2)(A) multiplied by the ratio 
of the land area in areas other than urbanized areas in 
that State and divided by the land area in all areas other 
than urbanized areas in the United States, as shown by 
the most recent decennial census of population. 
‘‘(B) MAXIMUM APPORTIONMENT.—No State shall receive 
more than 5 percent of the amount apportioned under 
this paragraph. 
‘‘(4) APPORTIONMENTS BASED ON POPULATION IN NONURBAN-
IZED
AREAS.—Each State shall receive an amount equal to 
the amount apportioned under paragraph (2)(B) multiplied by 
the ratio of the population of areas other than urbanized areas 
in that State divided by the population of all areas other 
than urbanized areas in the United States, as shown by the 
most recent decennial census of population.’’. 
(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 inserting ‘‘The Sec-
retary’’; 
(3) by striking paragraph (2); and 
(4) by striking ‘‘recipient’’ and inserting ‘‘subrecipient’’. 
(e) INTERCITY
BUS
TRANSPORTATION.—Section 5311(f) is 
amended—
(1) in paragraph (1)—
(A) by striking ‘‘(1) A State’’ and inserting the following: 
‘‘(1) IN GENERAL.—A State’’; 
(B) by striking ‘‘after September 30, 1993,’’; and 
(C) by moving subparagraphs (A) through (D) 2 ems 
to the right; and 
(2) in paragraph (2)—
(A) by striking ‘‘(2) A State’’ and inserting the following: 
‘‘(2) CERTIFICATION.—A State’’; and 
(B) by striking ‘‘Secretary of Transportation’’ and 
inserting ‘‘Secretary, after consultation with affected inter-
city bus service providers,’’. 
(f) GOVERNMENT SHARE OF COSTS.—Section 5311(g) is amended 
to read as follows: 
‘‘(g) GOVERNMENT SHARE OF COSTS.—
‘‘(1) CAPITAL PROJECTS.—
‘‘(A) IN GENERAL.—Except as provided by subparagraph 
(B), a grant awarded under this section for any purpose 
other than operating assistance 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 a Government share of the net 
capital costs in accordance with the formula under that 
section. 
‘‘(2) OPERATING ASSISTANCE.—
H. R. 3—453
‘‘(A) IN GENERAL.—Except as provided by subparagraph 
(B), a grant made under this section for operating assist-
ance may not exceed 50 percent of the net operating costs 
of the project, as determined by the Secretary. 
‘‘(B) EXCEPTION.—A State described in section 120(b) 
of title 23 shall receive a Government share of the net 
operating costs equal to 62.5 percent of the Government 
share provided for under paragraph (1)(B). 
‘‘(3) REMAINDER.—The remainder of 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. 
‘‘(4) USE OF CERTAIN FUNDS.—For purposes of paragraph 
(3)(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. 
‘‘(5) LIMITATION ON OPERATING ASSISTANCE.—A State car-
rying 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) WAIVER CONDITION.—Section 5311(j)(1) is amended by 
striking ‘‘but the Secretary of Labor may waive the application 
of section 5333(b)’’ and inserting ‘‘if the Secretary of Labor utilizes 
a special warranty that provides a fair and equitable arrangement 
to protect the interests of employees’’. 
(i) CORRECTION
TO
CHAPTER
ANALYSIS.—The analysis for 
chapter 53 is amended by striking the item relating to section 
5311 and inserting the following:
‘‘5311. Formula grants for other than urbanized areas.’’.
SEC. 
3014. 
RESEARCH, 
DEVELOPMENT, 
DEMONSTRATION, 
AND 
DEPLOYMENT PROJECTS. 
(a) IN GENERAL.—Section 5312(a) is amended to read as follows: 
‘‘(a) RESEARCH, DEVELOPMENT, DEMONSTRATION, AND DEPLOY-
MENT PROJECTS.—
‘‘(1) IN GENERAL.—The Secretary may make grants, con-
tracts, cooperative agreements, and other agreements (including 
agreements with departments, agencies, and instrumentalities 
of the United States Government) for research, development, 
demonstration, and deployment projects, and evaluation of tech-
nology of national significance to public transportation, that
H. R. 3—454
the Secretary determines will improve public transportation 
service or help public transportation service meet the total 
transportation needs at a minimum cost. 
‘‘(2) INFORMATION.—The Secretary may request and receive 
appropriate information from any source. 
‘‘(3) SAVINGS PROVISION.—This subsection does not limit 
the authority of the Secretary under any other law.’’. 
(b) JOINT PARTNERSHIP PROGRAM FOR DEPLOYMENT OF INNOVA-
TION.—Section 5312 is amended by striking subsections (b) and 
(c) and redesignating subsections (d) and (e) as subsections (b) 
and (c), respectively. 
(c) INTERNATIONAL MASS TRANSPORTATION PROGRAM.—Section 
5312(c)(2) (as redesignated by subsection (b) of this section) is 
amended by striking ‘‘public and private’’ and inserting ‘‘public 
or private’’. 
(d) FUNDING.—Section 5312(c)(3) (as redesignated by subsection 
(b) of this section) is amended by striking ‘‘shall be accounted 
for separately within the Mass Transit Account of the Highway 
Trust Fund and’’. 
(e) CONFORMING AMENDMENTS.—
(1) SECTION HEADING.—Section 5312 is amended by striking 
the section heading and inserting the following: 
‘‘§ 5312. Research, development, demonstration, and deploy-
ment 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. 3015. TRANSIT COOPERATIVE RESEARCH PROGRAM. 
(a) IN GENERAL.—Section 5313 is amended—
(1) by striking subsection (b); 
(2) in subsection (a)—
(A) in paragraph (1) by striking ‘‘(1) The amounts 
made available under paragraphs (1) and (2)(C)(ii) of sec-
tion 5338(c) of this title’’ and inserting ‘‘The amounts made 
available under subsections (a)(5)(C)(iii) and (d)(1) of sec-
tion 5338’’; and 
(B) in paragraph (2) by striking ‘‘(2) The Secretary’’ 
and inserting the following: 
‘‘(b) FEDERAL ASSISTANCE.—The Secretary’’; and 
(3) by striking subsection (c) and inserting the following: 
‘‘(c) GOVERNMENT’S SHARE.—If there would be a clear and direct 
financial benefit to an entity under a grant or contract financed 
under this section, the Secretary shall establish a Government 
share consistent with that benefit.’’. 
(b) CONFORMING AMENDMENTS.—
(1) SECTION HEADING.—Section 5313 is amended by striking 
the section heading and inserting the following: 
‘‘§ 5313. Transit 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. Transit cooperative research program.’’.
H. R. 3—455
SEC. 3016. NATIONAL RESEARCH AND TECHNOLOGY PROGRAMS. 
(a) IN GENERAL.—Section 5314 is amended—
(1) by striking the section heading and inserting the fol-
lowing: 
‘‘§ 5314. National research programs’’; 
(2) in subsection (a)(1)—
(A) by striking ‘‘subsections (d) and (h)(7) of section 
5338 of this title’’ and inserting ‘‘section 5338(d)’’; 
(B) by striking ‘‘and contracts’’ and inserting ‘‘, con-
tracts, cooperative agreements, or other agreements’’; 
(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); 
(6) by adding at the end of subsection (a) the following: 
‘‘(6) MEDICAL TRANSPORTATION DEMONSTRATION GRANTS.—
‘‘(A) GRANTS AUTHORIZED.—The Secretary may award 
demonstration grants, from funds made available under 
paragraph (1), to eligible entities to provide transportation 
services to individuals to access dialysis treatments and 
other medical treatments for renal disease. 
‘‘(B) ELIGIBLE ENTITIES.—An entity shall be eligible 
to receive a grant under this paragraph if the entity—
‘‘(i) meets the conditions described in section 
501(c)(3) of the Internal Revenue Code of 1986; or 
‘‘(ii) is an agency of a State or unit of local govern-
ment. 
‘‘(C) USE OF FUNDS.—Grant funds received under this 
paragraph may be used to provide transportation services 
to individuals to access dialysis treatments and other med-
ical treatments for renal disease. 
‘‘(D) APPLICATION.—
‘‘(i) IN GENERAL.—Each eligible entity desiring a 
grant under this paragraph shall submit an application 
to the Secretary at such time, at such place, and con-
taining such information as the Secretary may reason-
ably require. 
‘‘(ii) SELECTION OF GRANTEES.—In awarding grants 
under this paragraph, the Secretary shall give pref-
erence to eligible entities from communities with—
‘‘(I) high incidence of renal disease; and 
‘‘(II) limited access to dialysis facilities. 
‘‘(E) RULEMAKING.—The Secretary shall issue regula-
tions to implement and administer the grant program 
established under this paragraph. 
‘‘(F) REPORT.—The Secretary shall submit a report on 
the results of the demonstration projects funded under 
this paragraph to the Committee on Banking, Housing, 
and Urban Affairs of the Senate and the Committee on 
Transportation and Infrastructure of the House of Rep-
resentatives.’’.
H. R. 3—456
(7) in subsection (b) by striking ‘‘or contract’’ and all that 
follows through ‘‘section,’’ and inserting ‘‘, contract, cooperative 
agreement, or other agreement under subsection (a) or section 
5312,’’; and 
(b) NATIONAL TECHNICAL ASSISTANCE CENTER
FOR SENIOR 
TRANSPORTATION.—Section 5314 is amended by adding at the end 
the following: 
‘‘(c) NATIONAL TECHNICAL ASSISTANCE CENTER
FOR SENIOR 
TRANSPORTATION.—
‘‘(1) ESTABLISHMENT.—The Secretary shall award grants 
to a national not-for-profit organization for the establishment 
and maintenance of a national technical assistance center. 
‘‘(2) ELIGIBILITY.—An organization shall be eligible to 
receive a grant under paragraph (1) if the organization—
‘‘(A) focuses significantly on serving the needs of the 
elderly; 
‘‘(B) has demonstrated knowledge and expertise in 
senior transportation policy and planning issues; 
‘‘(C) has affiliates in a majority of the States; 
‘‘(D) has the capacity to convene local groups to consult 
on operation and development of senior transportation pro-
grams; and 
‘‘(E) has established close working relationships with 
the Federal Transit Administration and the Administration 
on Aging. 
‘‘(3) USE
OF
FUNDS.—The national technical assistance 
center established under this section shall—
‘‘(A) gather best practices from throughout the Nation 
and provide such practices to local communities that are 
implementing senior transportation programs; 
‘‘(B) work with teams from local communities to iden-
tify how the communities are successfully meeting the 
transportation needs of senior citizens and any gaps in 
services in order to create a plan for an integrated senior 
transportation program; 
‘‘(C) provide resources on ways to pay for senior 
transportation services; 
‘‘(D) create a web site to publicize and circulate 
information on senior transportation programs; 
‘‘(E) establish a clearinghouse for print, video, and 
audio resources on senior mobility; and 
‘‘(F) administer the demonstration grant program 
established under paragraph (4). 
‘‘(4) GRANTS AUTHORIZED.—
‘‘(A) IN GENERAL.—The national technical assistance 
center established under this section, in consultation with 
the Federal Transit Administration, shall award senior 
transportation demonstration grants to—
‘‘(i) local transportation organizations; 
‘‘(ii) State agencies; 
‘‘(iii) units of local government; and 
‘‘(iv) nonprofit organizations. 
‘‘(B) USE OF FUNDS.—Grant funds received under this 
paragraph may be used to—
‘‘(i) evaluate the state of transportation services 
for senior citizens;
H. R. 3—457
‘‘(ii) recognize barriers to mobility that senior citi-
zens encounter in their communities; 
‘‘(iii) establish partnerships and promote coordina-
tion among community stakeholders, including public, 
not-for-profit, and for-profit providers of transportation 
services for senior citizens; 
‘‘(iv) identify future transportation needs of senior 
citizens within local communities; and 
‘‘(v) establish strategies to meet the unique needs 
of healthy and frail senior citizens. 
‘‘(C) SELECTION
OF
GRANTEES.—The Secretary shall 
select grantees under this paragraph based on a fair rep-
resentation of various geographical locations throughout 
the United States.’’. 
(c) ALTERNATIVE FUELS STUDY.—
(1) STUDY.—The Secretary shall conduct a study of the 
actions necessary to facilitate the purchase of increased volumes 
of alternative fuels (as defined in section 301 of the Energy 
Policy Act of 1992 (42 U.S.C. 13211)) for use in public transit 
vehicles. 
(2) SCOPE OF STUDY.—The study conducted under this sub-
section shall focus on the incentives necessary to increase the 
use of alternative fuels in public transit vehicles, including 
buses, fixed guideway vehicles, and ferries. 
(3) CONTENTS.—The study shall consider—
(A) the environmental benefits of increased use of alter-
native fuels in transit vehicles; 
(B) existing opportunities available to transit system 
operators that encourage the purchase of alternative fuels 
for transit vehicle operation; 
(C) existing barriers to transit system operators that 
discourage the purchase of alternative fuels for transit 
vehicle operation, including situations where alternative 
fuels that do not require capital improvements to transit 
vehicles are disadvantaged over fuels that do require such 
improvements; and 
(D) the necessary levels and type of support necessary 
to encourage additional use of alternative fuels for transit 
vehicle operation. 
(4) RECOMMENDATIONS.—The study shall recommend regu-
latory and legislative alternatives that will result in the 
increased use of alternative fuels in transit vehicles. 
(5) REPORT.—Not later than 1 year after the date of enact-
ment of this Act, the Secretary 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 containing the results of 
the study completed under this subsection. 
(d) CONFORMING AMENDMENT.—The analysis for chapter 53 
is amended by striking the item relating to section 5314 and 
inserting the following:
‘‘5314. National research programs.’’.
SEC. 3017. NATIONAL TRANSIT INSTITUTE. 
(a) ESTABLISHMENT AND DUTIES.—Section 5315 is amended by 
striking subsections (a) and (b) and inserting the following:
H. R. 3—458
‘‘(a) ESTABLISHMENT.—The Secretary shall award grants to Rut-
gers University to conduct a national transit institute. 
‘‘(b) DUTIES.—
‘‘(1) IN GENERAL.—In cooperation with the Federal Transit 
Administration, State transportation departments, public 
transportation authorities, and national and international enti-
ties, the institute established under subsection (a) shall develop 
and conduct training and educational programs for Federal, 
State, and local transportation employees, United States citi-
zens, and foreign nationals engaged or to be engaged in Govern-
ment-aid public transportation work. 
‘‘(2) TRAINING AND EDUCATIONAL PROGRAMS.—The training 
and educational programs developed under paragraph (1) may 
include courses in recent developments, techniques, and proce-
dures related to—
‘‘(A) intermodal and public transportation planning; 
‘‘(B) management; 
‘‘(C) environmental factors; 
‘‘(D) acquisition and joint use rights-of-way; 
‘‘(E) engineering and architectural design; 
‘‘(F) procurement strategies for public transportation 
systems; 
‘‘(G) turnkey approaches to delivering public transpor-
tation systems; 
‘‘(H) new technologies; 
‘‘(I) emission reduction technologies; 
‘‘(J) ways to make public transportation accessible to 
individuals with disabilities; 
‘‘(K) construction, construction management, insur-
ance, and risk management; 
‘‘(L) maintenance; 
‘‘(M) contract administration; 
‘‘(N) inspection; 
‘‘(O) innovative finance; 
‘‘(P) workplace safety; and 
‘‘(Q) public transportation security.’’. 
(b) AVAILABILITY OF AMOUNTS.—Section 5315(d) is amended 
by striking ‘‘mass’’ each place it appears. 
SEC. 3018. JOB ACCESS AND REVERSE COMMUTE FORMULA GRANTS. 
(a) IN GENERAL.—Chapter 53 is amended by inserting 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 ‘access to jobs 
project’ means a project relating to the development and 
maintenance of transportation 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, cap-
ital, and operating costs of providing access to jobs under 
this chapter;
H. R. 3—459
‘‘(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 individuals; and 
‘‘(D) promoting the use of employer-provided transpor-
tation, including the transit pass benefit program under 
section 132 of the Internal Revenue Code of 1986. 
‘‘(2) ELIGIBLE LOW-INCOME INDIVIDUAL.—The term ‘eligible 
low-income individual’ means an individual whose family 
income is at or below 150 percent 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 revision 
required by that section) for a family of the size involved. 
‘‘(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 com-
mute project’ means a public transportation project designed 
to transport residents of urbanized areas and other than urban-
ized 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 subur-
ban workplaces; 
‘‘(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 employment opportuni-
ties. 
‘‘(5) SUBRECIPIENT.—The term ‘subrecipient’ means a State 
or local governmental authority, nonprofit organization, or oper-
ator of public transportation services that receives a grant 
under this section indirectly through a recipient. 
‘‘(6) WELFARE
RECIPIENT.—The term ‘welfare recipient’ 
means an individual who has received assistance 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 administer, plan, and provide 
technical assistance for a project funded under this section. 
‘‘(c) APPORTIONMENTS.—
‘‘(1) FORMULA.—The Secretary shall apportion amounts 
made available for a fiscal year to carry out this section as 
follows: 
‘‘(A) 60 percent of the funds shall be apportioned among 
designated recipients (as defined in section 5307(a)(2)) for
H. R. 3—460
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 apportioned among 
the States in the ratio that—
‘‘(i) the number of eligible low-income individuals 
and welfare recipients in urbanized areas with a popu-
lation of less than 200,000 in each State; bears to 
‘‘(ii) the number of eligible low-income individuals 
and welfare recipients in urbanized areas with a popu-
lation of less than 200,000 in all States. 
‘‘(C) 20 percent of the funds shall be apportioned 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 
‘‘(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 urbanized areas with a popu-
lation of 200,000 or more; 
‘‘(B) funds apportioned under paragraph (1)(B) shall 
be used for projects serving urbanized areas with a popu-
lation 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 apportioned 
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 
‘‘(B) for projects anywhere in the State if the State 
has established a statewide program for meeting the objec-
tives of this section. 
‘‘(d) COMPETITIVE PROCESS FOR GRANTS TO SUBRECIPIENTS.—
‘‘(1) AREAWIDE SOLICITATIONS.—A recipient of funds appor-
tioned under subsection (c)(1)(A) shall conduct, in cooperation 
with the appropriate metropolitan planning organization, an 
areawide solicitation for applications for grants to the recipient 
and subrecipients under this section. 
‘‘(2) STATEWIDE SOLICITATION.—A recipient of funds appor-
tioned under subsection (c)(1)(B) or (c)(1)(C) shall conduct a 
statewide solicitation for applications for grants to the recipient 
and subrecipients under this section. 
‘‘(3) APPLICATION.—Recipients and subrecipients seeking to 
receive a grant from funds apportioned under subsection (c) 
shall submit to the recipient an application in the form and
H. R. 3—461
in accordance with such requirements as the recipient shall 
establish. 
‘‘(4) GRANT
AWARDS.—The recipient shall award grants 
under paragraphs (1) and (2) on a competitive basis. 
‘‘(e) TRANSFERS.—
‘‘(1) IN GENERAL.—A State may transfer any funds appor-
tioned to it under subsection (c)(1)(B) or (c)(1)(C), or both, 
to an apportionment under section 5311(c) or 5336, or both. 
‘‘(2) LIMITED TO ELIGIBLE PROJECTS.—Any apportionment 
transferred under this subsection shall be made available only 
for eligible job access and reverse commute projects as described 
in this section. 
‘‘(3) CONSULTATION.—A State may make a transfer of an 
amount under this subsection only after consulting with respon-
sible local officials and publicly owned operators of public 
transportation in each area for which the amount originally 
was awarded under subsection (d)(4). 
‘‘(f) GRANT REQUIREMENTS.—
‘‘(1) IN GENERAL.—A grant under this section shall be sub-
ject to the requirements of section 5307. 
‘‘(2) FAIR AND EQUITABLE DISTRIBUTION.—A recipient of a 
grant under this section shall certify to the Secretary that 
allocations of the grant to subrecipients are distributed on 
a fair and equitable basis. 
‘‘(g) COORDINATION.—
‘‘(1) IN GENERAL.—The Secretary shall coordinate activities 
under this section with related activities under programs of 
other Federal departments and agencies. 
‘‘(2) WITH NONPROFIT PROVIDERS.—A State that transfers 
funds to an apportionment under section 5336 pursuant to 
subsection (e) shall certify to the Secretary that any project 
for which the funds are requested under this section has been 
coordinated with nonprofit providers of services. 
‘‘(3) PROJECT
SELECTION
AND
PLANNING.—A recipient of 
funds under this section shall certify to the Secretary 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 participa-
tion by the public. 
‘‘(h) GOVERNMENT’S SHARE OF COSTS.—
‘‘(1) CAPITAL PROJECTS.—A grant for a capital project under 
this section may not exceed 80 percent of the net capital costs 
of the project, as determined by the Secretary. 
‘‘(2) OPERATING ASSISTANCE.—A grant made under this sec-
tion 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 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; and
H. R. 3—462
‘‘(B) may be derived from amounts appropriated to 
or made available to a department or agency of the Govern-
ment (other than the Department 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 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. 
‘‘(5) LIMITATION ON OPERATING ASSISTANCE.—A recipient 
carrying out a program of operating assistance under this sec-
tion may not limit the level or extent of use of the Government 
grant for the payment of operating expenses. 
‘‘(i) PROGRAM EVALUATION.—
‘‘(1) COMPTROLLER GENERAL.—Beginning one year after the 
date of enactment of the Federal Public Transportation Act 
of 2005, and every 2 years thereafter, the Comptroller General 
shall—
‘‘(A) conduct a study to evaluate the grant program 
authorized by this section; and 
‘‘(B) 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 describing the results of the study 
under subparagraph (A). 
‘‘(2) DEPARTMENT OF TRANSPORTATION.—Not later than 3 
years after the date of enactment of Federal Public Transpor-
tation Act of 2005, the Secretary shall—
‘‘(A) conduct a study to evaluate the effectiveness of 
the grant program authorized by this section and the 
effectiveness of recipients making grants to subrecipients 
under this section; and 
‘‘(B) transmit to the committees referred to in para-
graph (1)(B) a report describing the results of the study 
under subparagraph (A).’’. 
(b) CONFORMING AMENDMENT.—The analysis for chapter 53 
is amended by inserting after the item relating to section 5315 
the following:
‘‘5316. Job access and reverse commute formula grants.’’.
(c) REPEAL.—Effective October 1, 2005, section 3037 of the 
Transportation Equity Act for the 21st Century (49 U.S.C. 5309 
note; 112 Stat. 387) is repealed. 
SEC. 3019. NEW FREEDOM PROGRAM. 
(a) IN GENERAL.—Chapter 53 is amended by inserting after 
section 5316 the following: 
‘‘§ 5317. New freedom program 
‘‘(a) DEFINITIONS.—In this section, the following definitions 
apply: 
‘‘(1) 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. 
‘‘(2) SUBRECIPIENT.—The term ‘subrecipient’ means a State 
or local governmental authority, nonprofit organization, or oper-
ator of public transportation services that receives a grant 
under this section indirectly through a recipient.
H. R. 3—463
‘‘(b) GENERAL AUTHORITY.—
‘‘(1) GRANTS.—The Secretary may make grants under this 
section to a recipient for new public transportation services 
and public transportation alternatives beyond those required 
by the Americans with Disabilities Act of 1990 (42 U.S.C. 
12101 et seq.) that assist individuals with disabilities with 
transportation, including transportation to and from jobs and 
employment support services. 
‘‘(2) ADMINISTRATIVE EXPENSES.—A recipient may use not 
more than 10 percent of the amounts apportioned to the 
recipient under this section to administer, 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 apportioned among 
designated recipients (as defined in section 5307(a)(2)) for 
urbanized areas with a population of 200,000 or more in 
the ratio that—
‘‘(i) the number of individuals with disabilities in 
each such urbanized area; bears to 
‘‘(ii) the number of individuals with disabilities 
in all such urbanized areas. 
‘‘(B) 20 percent of the funds shall be apportioned among 
the States in the ratio that—
‘‘(i) the number of individuals with disabilities in 
urbanized areas with a population of less than 200,000 
in each State; bears to 
‘‘(ii) the number of individuals with disabilities 
in urbanized areas with a population of less than 
200,000 in all States. 
‘‘(C) 20 percent of the funds shall be apportioned among 
the States in the ratio that—
‘‘(i) the number of individuals with disabilities in 
other than urbanized areas in each State; bears to 
‘‘(ii) the number of individuals with disabilities 
in other than urbanized areas in all States. 
‘‘(2) USE
OF
APPORTIONED
FUNDS.—Funds apportioned 
under paragraph (1) shall be used for projects as follows: 
‘‘(A) Funds apportioned under paragraph (1)(A) shall 
be used for projects serving urbanized areas with a popu-
lation of 200,000 or more. 
‘‘(B) Funds apportioned under paragraph (1)(B) shall 
be used for projects serving urbanized areas with a popu-
lation of less than 200,000. 
‘‘(C) Funds apportioned under paragraph (1)(C) shall 
be used for projects serving other than urbanized areas. 
‘‘(3) TRANSFERS.—
‘‘(A) IN GENERAL.—A State may transfer any funds 
apportioned to it under paragraph (1)(B) or (1)(C), or both, 
to an apportionment under section 5311(c) or 5336, or 
both. 
‘‘(B) LIMITED TO ELIGIBLE PROJECTS.—Any funds trans-
ferred pursuant to this paragraph shall be made available 
only for eligible projects selected under this section. 
‘‘(C) CONSULTATION.—A State may make a transfer 
of an amount under this subsection only after consulting
H. R. 3—464
with responsible local officials and publicly owned operators 
of public transportation in each area for which the amount 
originally was awarded under subsection (d)(4). 
‘‘(d) COMPETITIVE PROCESS FOR GRANTS TO SUBRECIPIENTS.—
‘‘(1) AREAWIDE SOLICITATIONS.—A recipient of funds appor-
tioned under subsection (c)(1)(A) shall conduct, in cooperation 
with the appropriate metropolitan planning organization, an 
areawide solicitation for applications for grants to the recipient 
and subrecipients under this section. 
‘‘(2) STATEWIDE SOLICITATION.—A recipient of funds appor-
tioned under subsection (c)(1)(B) or (c)(1)(C) shall conduct a 
statewide solicitation for applications for grants to the recipient 
and subrecipients under this section. 
‘‘(3) APPLICATION.—Recipients and subrecipients seeking to 
receive a grant from funds apportioned under subsection (c) 
shall submit to the recipient an application in the form and 
in accordance with such requirements as the recipient shall 
establish. 
‘‘(4) GRANT
AWARDS.—The recipient shall award grants 
under paragraphs (1) and (2) on a competitive basis. 
‘‘(e) GRANT REQUIREMENTS.—
‘‘(1) IN GENERAL.—A grant under this section shall be sub-
ject to all the requirements of section 5310 to the extent the 
Secretary considers appropriate. 
‘‘(2) FAIR AND EQUITABLE DISTRIBUTION.—A recipient of a 
grant under this section shall certify that allocations of the 
grant to subrecipients are distributed on a fair and equitable 
basis. 
‘‘(f) COORDINATION.—
‘‘(1) IN GENERAL.—The Secretary shall coordinate activities 
under this section with related activities under programs of 
other Federal departments and agencies. 
‘‘(2) WITH NONPROFIT PROVIDERS.—A recipient that trans-
fers funds to an apportionment under section 5336 pursuant 
to subsection (c)(2) shall certify that the project for which 
the funds are requested under this section has been coordinated 
with nonprofit providers of services. 
‘‘(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 participa-
tion by the public. 
‘‘(g) GOVERNMENT’S SHARE OF COSTS.—
‘‘(1) CAPITAL PROJECTS.—A grant for a capital project under 
this section may not exceed 80 percent of the net capital costs 
of the project, as determined by the Secretary. 
‘‘(2) OPERATING ASSISTANCE.—A grant made under this sec-
tion 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—
H. R. 3—465
‘‘(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; and 
‘‘(B) may be derived from amounts appropriated to 
or made available to a department or agency of the Govern-
ment (other than the Department 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 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. 
‘‘(5) LIMITATION ON OPERATING ASSISTANCE.—A recipient 
carrying out a program of operating assistance under this sec-
tion may not limit the level or extent of use of the Government 
grant for the payment of operating expenses.’’. 
(b) CONFORMING AMENDMENT.—The analysis for chapter 53 
is amended by inserting after the item relating to section 5316 
the following:
‘‘5317. New freedom program.’’.
SEC. 3020. BUS TESTING FACILITY. 
(a) FACILITY.—Section 5318(a) is amended to read as follows: 
‘‘(a) FACILITY.—The Secretary shall maintain one facility for 
testing a new bus model for maintainability, reliability, safety, 
performance (including braking performance), structural integrity, 
fuel economy, emissions, and noise.’’. 
(b) AVAILABILITY OF AMOUNTS TO PAY FOR TESTING.—Section 
5318(d) is amended by striking ‘‘under section 5309(m)(1)(C) of 
this title’’ and inserting ‘‘to carry out this section’’. 
(c) ACQUIRING NEW BUS MODELS.—Section 5318(e) is amended 
to read as follows: 
‘‘(e) ACQUIRING NEW BUS MODELS.—Amounts appropriated or 
made available under this chapter may be obligated or expended 
to acquire a new bus model only if a bus of that model has been 
tested at the facility maintained by the Secretary under subsection 
(a).’’. 
SEC. 3021. ALTERNATIVE TRANSPORTATION IN PARKS AND PUBLIC 
LANDS. 
(a) IN GENERAL.—Chapter 53 is amended by striking section 
5320 and inserting the following: 
‘‘§ 5320. Alternative transportation in parks and public lands 
‘‘(a) IN GENERAL.—
‘‘(1) AUTHORIZATION.—
‘‘(A) IN GENERAL.—The Secretary, in consultation with 
the Secretary of the Interior, may award a grant or enter 
into a contract, cooperative agreement, interagency agree-
ment, intra—agency agreement, or other agreement to 
carry out a qualified project under this section to enhance 
the protection of national parks and public lands and 
increase the enjoyment of those visiting the parks and 
public lands by—
H. R. 3—466
‘‘(i) ensuring access to all, including persons with 
disabilities; 
‘‘(ii) improving conservation and park and public 
land opportunities in urban areas through partnering 
with State and local governments; and 
‘‘(iii) improving park and public land transpor-
tation infrastructure. 
‘‘(B) CONSULTATION
WITH
OTHER
AGENCIES.—To the 
extent that projects are proposed or funded in eligible 
areas that are not within the jurisdiction of the Department 
of the Interior, the Secretary of the Interior shall consult 
with the heads of the relevant Federal land management 
agencies in carrying out the responsibilities under this 
section. 
‘‘(2) USE OF FUNDS.—A grant, cooperative agreement, inter-
agency agreement, intra—agency agreement, or other agree-
ment for a qualified project under this section shall be available 
to finance the leasing of equipment and facilities for use in 
public transportation, subject to any regulation that the Sec-
retary may prescribe limiting the grant or agreement to leasing 
arrangements that are more cost-effective than purchase or 
construction. 
‘‘(3) ALTERNATIVE TRANSPORTATION FACILITIES AND SERV-
ICES.—Projects receiving assistance under this section shall 
provide alternative transportation facilities and services that 
complement and enhance existing transportation services in 
national parks and public lands in a manner that is consistent 
with Department of Interior and other public land management 
policies regarding private automobile access to and in such 
parks and lands. 
‘‘(b) DEFINITIONS.—In this section, the following definitions 
apply: 
‘‘(1) ELIGIBLE AREA.—The term ‘eligible area’ means any 
federally owned or managed park, refuge, or recreational area 
that is open to the general public, including—
‘‘(A) a unit of the National Park System; 
‘‘(B) a unit of the National Wildlife Refuge System; 
‘‘(C) a recreational area managed by the Bureau of 
Land Management; 
‘‘(D) a recreation area managed by the Bureau of Rec-
lamation; and 
‘‘(E) a unit of the National Forest System. 
‘‘(2) FEDERAL LAND MANAGEMENT AGENCY.—The term ‘Fed-
eral land management agency’ means a Federal agency that 
manages an eligible area. 
‘‘(3) ALTERNATIVE TRANSPORTATION.—The term ‘alternative 
transportation’ means transportation by bus, rail, or any other 
publicly or privately owned conveyance that provides to the 
public general or special service on a regular basis, including 
sightseeing service. Such term also includes a nonmotorized 
transportation system (including the provision of facilities for 
pedestrians, bicycles, and nonmotorized watercraft). 
‘‘(4) QUALIFIED PARTICIPANT.—The term ‘qualified partici-
pant’ means—
‘‘(A) a Federal land management agency; or 
‘‘(B) a State, tribal, or local governmental authority 
with jurisdiction over land in the vicinity of an eligible
H. R. 3—467
area acting with the consent of the Federal land manage-
ment agency, alone or in partnership with a Federal land 
management agency or other governmental or nongovern-
mental participant. 
‘‘(5) QUALIFIED
PROJECT.—The term ‘qualified project’ 
means a planning or capital project in or in the vicinity of 
an eligible area that—
‘‘(A) is an activity described in section 5302(a)(1)(A), 
5303, 5304, 5305, or 5309(b); 
‘‘(B) involves—
‘‘(i) the purchase of rolling stock that incorporates 
clean fuel technology or the replacement of buses of 
a type in use on the date of enactment of the Federal 
Public Transportation Act of 2005 with clean fuel 
vehicles; or 
‘‘(ii) the deployment of alternative transportation 
vehicles that introduce innovative technologies or 
methods; 
‘‘(C) relates to the capital costs of coordinating the 
Federal land management agency public transportation 
systems with other public transportation systems; 
‘‘(D) provides a nonmotorized transportation system 
(including the provision of facilities for pedestrians, 
bicycles, and nonmotorized watercraft); 
‘‘(E) provides waterborne access within or in the 
vicinity of an eligible area, as appropriate to and consistent 
with this section; or 
‘‘(F) is any other alternative transportation project 
that—
‘‘(i) enhances the environment; 
‘‘(ii) prevents or mitigates an adverse impact on 
a natural resource; 
‘‘(iii) improves Federal land management agency 
resource management; 
‘‘(iv) improves visitor mobility and accessibility and 
the visitor experience; 
‘‘(v) reduces congestion and pollution (including 
noise pollution and visual pollution); or 
‘‘(vi) conserves a natural, historical, or cultural 
resource (excluding rehabilitation or restoration of a 
non-transportation facility). 
‘‘(c) FEDERAL AGENCY COOPERATIVE ARRANGEMENTS.—The Sec-
retary shall develop cooperative arrangements with the Secretary 
of the Interior that provide for—
‘‘(1) technical assistance in alternative transportation; 
‘‘(2) interagency and multidisciplinary teams to develop 
Federal land management agency alternative transportation 
policy, procedures, and coordination; and 
‘‘(3) the development of procedures and criteria relating 
to the planning, selection, and funding of qualified projects 
and the implementation and oversight of the program of 
projects in accordance with this section. 
‘‘(d) LIMITATION ON USE OF AVAILABLE AMOUNTS.—
‘‘(1) IN GENERAL.—The Secretary, in consultation with the 
Secretary of the Interior, may use not more than 10 percent 
of the amount made available for a fiscal year under section 
5338(b)(2)(J) to carry out planning, research, and technical
H. R. 3—468
assistance under this section, including the development of 
technology appropriate for use in a qualified project. 
‘‘(2) ADDITIONAL AMOUNTS.—Amounts made available under 
this subsection are in addition to amounts otherwise available 
to the Secretary to carry out planning, research, and technical 
assistance under this chapter or any other provision of law. 
‘‘(3) MAXIMUM AMOUNT.—No qualified project shall receive 
more than 25 percent of the total amount made available to 
carry out this section under section 5338(b)(2)(J) for any fiscal 
year. 
‘‘(e) PLANNING PROCESS.—In undertaking a qualified project 
under this section—
‘‘(1) if the qualified participant is a Federal land manage-
ment agency—
‘‘(A) the Secretary, in cooperation with the Secretary 
of the Interior, shall develop transportation planning proce-
dures that are consistent with—
‘‘(i) the metropolitan planning provisions under 
section 5303; 
‘‘(ii) the statewide planning provisions under sec-
tion 5304; and 
‘‘(iii) the public participation requirements under 
section 5307(d); and 
‘‘(B) in the case of a qualified project that is at a 
unit of the National Park System, the planning process 
shall be consistent with the general management plans 
of the unit of the National Park System; and 
‘‘(2) if the qualified participant is a State or local govern-
mental authority, or more than one State or local governmental 
authority in more than one State, the qualified participant 
shall—
‘‘(A) comply with the metropolitan planning provisions 
under section 5303; 
‘‘(B) comply with the statewide planning provisions 
under section 5304; 
‘‘(C) comply with the public participation requirements 
under section 5307(d); and 
‘‘(D) consult with the appropriate Federal land manage-
ment agency during the planning process. 
‘‘(f) COST SHARING.—
‘‘(1) GOVERNMENT’S SHARE.—The Secretary, in cooperation 
with the Secretary of the Interior, shall establish the Govern-
ment’s share of the net project cost to be provided to a qualified 
participant under this section. 
‘‘(2) CONSIDERATIONS.—In establishing the Government’s 
share of the net project cost to be provided under this section, 
the Secretary shall consider—
‘‘(A) visitation levels and the revenue derived from 
user fees in the eligible area in which the qualified project 
is carried out; 
‘‘(B) the extent to which the qualified participant 
coordinates with a public transportation authority or pri-
vate entity engaged in public transportation; 
‘‘(C) private investment in the qualified project, 
including the provision of contract services, joint develop-
ment activities, and the use of innovative financing mecha-
nisms;
H. R. 3—469
‘‘(D) the clear and direct benefit to the qualified partici-
pant; and 
‘‘(E) any other matters that the Secretary considers 
appropriate to carry out this section. 
‘‘(3) SPECIAL RULE.—Notwithstanding any other provision 
of law, funds appropriated to any Federal land management 
agency may be counted toward the remainder of the net project 
cost. 
‘‘(g) SELECTION OF QUALIFIED PROJECTS.—
‘‘(1) IN GENERAL.—The Secretary of the Interior, after con-
sultation with and in cooperation with the Secretary, shall 
determine the final selection and funding of an annual program 
of qualified projects in accordance with this section. 
‘‘(2) CONSIDERATIONS.—In determining whether to include 
a project in the annual program of qualified projects, the Sec-
retary of the Interior shall consider—
‘‘(A) the justification for the qualified project, including 
the extent to which the qualified project would conserve 
resources, prevent or mitigate adverse impact, and enhance 
the environment; 
‘‘(B) the location of the qualified project, to ensure 
that the selected qualified projects—
‘‘(i) are geographically diverse nationwide; and 
‘‘(ii) include qualified projects in eligible areas 
located in both urban areas and rural areas; 
‘‘(C) the size of the qualified project, to ensure that 
there is a balanced distribution; 
‘‘(D) the historical and cultural significance of a quali-
fied project; 
‘‘(E) safety; 
‘‘(F) the extent to which the qualified project would—
‘‘(i) enhance livable communities; 
‘‘(ii) reduce pollution (including noise pollution, air 
pollution, and visual pollution); 
‘‘(iii) reduce congestion; and 
‘‘(iv) improve the mobility of people in the most 
efficient manner; and 
‘‘(G) any other matters that the Secretary of the 
Interior considers appropriate to carry out this section, 
including—
‘‘(i) visitation levels; 
‘‘(ii) the use of innovative financing or joint 
development strategies; and 
‘‘(iii) coordination with gateway communities. 
‘‘(h) QUALIFIED PROJECTS CARRIED OUT IN ADVANCE.—
‘‘(1) IN GENERAL.—When a qualified participant carries out 
any part of a qualified project without assistance under this 
section in accordance with all applicable procedures and 
requirements, the Secretary, in consultation with the Secretary 
of the Interior, may pay the share of the net capital project 
cost of a qualified project if—
‘‘(A) the qualified participant applies for the payment; 
‘‘(B) the Secretary approves the payment; and 
‘‘(C) before carrying out that part of the qualified 
project, the Secretary approves the plans and specifications 
in the same manner as plans and specifications are 
approved for other projects assisted under this section.
H. R. 3—470
‘‘(2) FINANCING COSTS.—
‘‘(A) IN GENERAL.—The cost of carrying out part of 
a qualified project under paragraph (1) includes the amount 
of interest earned and payable on bonds issued by a State 
or local governmental authority, to the extent that proceeds 
of the bond are expended in carrying out that part. 
‘‘(B) LIMITATION ON AMOUNT OF INTEREST.—The rate 
of interest under this paragraph may not exceed the most 
favorable rate reasonably available for the qualified project 
at the time of borrowing. 
‘‘(C) CERTIFICATION.—The qualified participant shall 
certify, in a manner satisfactory to the Secretary, that 
the qualified participant has exercised reasonable diligence 
in seeking the most favorable interest rate. 
‘‘(i) RELATIONSHIP TO OTHER LAWS.—
‘‘(1) SECTION 5307.—A qualified participant under this sec-
tion shall be subject to the requirements of sections 5307 and 
5333(a) to the extent the Secretary determines to be appro-
priate. 
‘‘(2) OTHER REQUIREMENTS.—A qualified participant under 
this section shall be subject to any other requirements that 
the Secretary determines to be appropriate to carry out this 
section, including requirements for the distribution of proceeds 
on disposition of real property and equipment resulting from 
a qualified project assisted under this section. 
‘‘(3) PROJECT MANAGEMENT PLAN.—If the amount of assist-
ance anticipated to be required for a qualified project under 
this section is not less than $25,000,000—
‘‘(A) the qualified project shall, to the extent the Sec-
retary considers appropriate, be carried out through a full 
funding grant agreement in accordance with section 
5309(g); and 
‘‘(B) the qualified participant shall prepare a project 
management plan in accordance with section 5327(a). 
‘‘(j) ASSET MANAGEMENT.—The Secretary, in consultation with 
the Secretary of the Interior, may transfer the interest of the 
Department of Transportation in, and control over, all facilities 
and equipment acquired under this section to a qualified participant 
for use and disposition in accordance with any property manage-
ment regulations that the Secretary determines to be appropriate. 
‘‘(k) COORDINATION OF RESEARCH AND DEPLOYMENT OF NEW 
TECHNOLOGIES.—
‘‘(1) GRANTS AND OTHER ASSISTANCE.—The Secretary, in 
cooperation with the Secretary of the Interior, may undertake, 
or make grants, cooperative agreements, contracts (including 
agreements with departments, agencies, and instrumentalities 
of the Federal Government) or other agreements for research, 
development, and deployment of new technologies in eligible 
areas that will—
‘‘(A) conserve resources; 
‘‘(B) prevent or mitigate adverse environmental impact; 
‘‘(C) improve visitor mobility, accessibility, and enjoy-
ment; and 
‘‘(D) reduce pollution (including noise pollution and 
visual pollution). 
‘‘(2) INFORMATION.—The Secretary may request and receive 
appropriate information from any source.
H. R. 3—471
‘‘(3) FUNDING.—Grants, cooperative agreements, contracts, 
and other agreements under paragraph (1) shall be awarded 
from amounts allocated under subsection (d)(1). 
‘‘(l) INNOVATIVE FINANCING.—A qualified project receiving finan-
cial assistance under this section shall be eligible for funding 
through a State infrastructure bank or other innovative financing 
mechanism available to finance an eligible project under this 
chapter. 
‘‘(m) REPORTS.—
‘‘(1) IN GENERAL.—The Secretary, in consultation with the 
Secretary of the Interior, shall annually submit a report on 
the allocation of amounts made available to assist qualified 
projects under this section to—
‘‘(A) the Committee on Banking, Housing, and Urban 
Affairs of the Senate; 
‘‘(B) the Committee on Transportation and Infrastruc-
ture of the House of Representatives; and 
‘‘(C) the Committee on Resources of the House of Rep-
resentatives and the Committee on Energy and Natural 
Resources of the Senate. 
‘‘(2) ANNUAL REPORTS.—The report required under para-
graph (1) shall be included in the report submitted under 
section 5309(k)(1).’’. 
(b) CONFORMING AMENDMENT.—The analysis for chapter 53 
is amended by striking the item relating to section 5320 and 
inserting the following:
‘‘5320. Alternative transportation in parks and public lands.’’.
SEC. 3022. HUMAN RESOURCES PROGRAMS. 
Section 5322 is amended—
(1) by inserting ‘‘(a) IN GENERAL.—’’ before ‘‘The Secretary’’; 
and 
(2) by adding at the end the following: 
‘‘(b) FELLOWSHIPS.—
‘‘(1) AUTHORITY
TO
MAKE
GRANTS.—The Secretary may 
make grants to States, local governmental authorities, and 
operators of public transportation systems to provide fellow-
ships to train personnel employed in managerial, technical, 
and professional positions in the public transportation field. 
‘‘(2) TERMS.—
‘‘(A) PERIOD OF TRAINING.—A fellowship under this sub-
section may not be for more than 1 year of training in 
an institution that offers a program applicable to the public 
transportation industry. 
‘‘(B) SELECTION OF INDIVIDUALS.—A recipient of a grant 
for a fellowship under this subsection shall select an indi-
vidual on the basis of demonstrated ability and for the 
contribution the individual reasonably can be expected to 
make to an efficient public transportation operation. 
‘‘(C) AMOUNT.—A grant for a fellowship under this 
subsection may not be more than the lesser of $65,000 
or 75 percent of the sum of—
‘‘(i) tuition and other charges to the fellowship 
recipient; 
‘‘(ii) additional costs incurred by the training 
institution and billed to the grant recipient; and
H. R. 3—472
‘‘(iii) the regular salary of the fellowship recipient 
for the period of the fellowship to the extent the salary 
is actually paid or reimbursed by the grant recipient.’’. 
SEC. 3023. GENERAL PROVISIONS ON ASSISTANCE. 
(a) INTERESTS IN PROPERTY.—Section 5323(a) is amended—
(1) by striking paragraph (1) and inserting the following: 
‘‘(1) IN GENERAL.—Financial assistance provided under this 
chapter to a State or a local governmental authority may be 
used to acquire an interest in, or to buy property of, a private 
company engaged in public transportation, for a capital project 
for property acquired from a private company engaged in public 
transportation after July 9, 1964, or to operate a public 
transportation facility or equipment in competition with, or 
in addition to, transportation service provided by an existing 
public transportation company, only if—
‘‘(A) the Secretary determines that such financial 
assistance is essential to a program of projects required 
under sections 5303, 5304, and 5306; 
‘‘(B) the Secretary determines that the program pro-
vides for the participation of private companies engaged 
in public transportation to the maximum extent feasible; 
and 
‘‘(C) just compensation under State or local law will 
be paid to the company for its franchise or property.’’; 
and 
(2) in paragraph (2) by striking ‘‘(2) A governmental 
authority’’ and inserting the following: 
‘‘(2) LIMITATION.—A governmental authority’’. 
(b) NOTICE AND PUBLIC HEARING.—Section 5323(b) is amended 
to read as follows: 
‘‘(b) NOTICE AND PUBLIC HEARING.—
‘‘(1) IN GENERAL.—For a capital project that will substan-
tially affect a community, or the public transportation service 
of a community, an applicant shall—
‘‘(A) provide an adequate opportunity for public review 
and comment on the project; 
‘‘(B) after providing notice, hold a public hearing on 
the project if the project affects significant economic, social, 
or environmental interests; 
‘‘(C) consider the economic, social, and environmental 
effects of the project; and 
‘‘(D) find that the project is consistent with official 
plans for developing the community. 
‘‘(2) NOTICE.—Notice of a hearing under this subsection—
‘‘(A) shall include a concise description of the proposed 
project; and 
‘‘(B) shall be published in a newspaper of general cir-
culation in the geographic area the project will serve. 
‘‘(3) APPLICATION
REQUIREMENTS.—An application for a 
grant under this chapter for a capital project described in 
paragraph (1) shall include—
‘‘(A) a certification that the applicant has complied 
with the requirements of this subsection; and 
‘‘(B) in the environmental record for the project, evi-
dence that the applicant has complied with the require-
ments of this subsection.’’.
H. R. 3—473
(c) FARES NOT REQUIRED.—Section 5323(c) is amended to read 
as follows: 
‘‘(c) FARES NOT REQUIRED.—This chapter does not require that 
elderly individuals and individuals with disabilities be charged 
a fare.’’. 
(d) CONDITION ON CHARTER BUS TRANSPORTATION SERVICE.—
Section 5323(d) is amended—
(1) by striking ‘‘(1) Financial assistance’’ and inserting the 
following: 
‘‘(1) AGREEMENTS.—Financial assistance’’; and 
(2) by striking paragraph (2) and inserting the following: 
‘‘(2) VIOLATIONS.—
‘‘(A) INVESTIGATIONS.—On receiving a complaint about 
a violation of the agreement required under paragraph 
(1), the Secretary shall investigate and decide whether 
a violation has occurred. 
‘‘(B) ENFORCEMENT OF AGREEMENTS.—If the Secretary 
decides that a violation has occurred, the Secretary shall 
correct the violation under terms of the agreement. 
‘‘(C) ADDITIONAL REMEDIES.—In addition to any remedy 
specified in the agreement, the Secretary shall bar a 
recipient or an operator from receiving Federal transit 
assistance in an amount the Secretary considers appro-
priate if the Secretary finds a pattern of violations of the 
agreement.’’. 
(e) BOND PROCEEDS ELIGIBLE
FOR LOCAL SHARE.—Section 
5323(e) is amended to read as follows: 
‘‘(e) BOND PROCEEDS ELIGIBLE FOR LOCAL SHARE.—
‘‘(1) USE AS LOCAL MATCHING FUNDS.—Notwithstanding any 
other provision of law, a recipient of assistance under section 
5307 or 5309 may use the proceeds from the issuance of revenue 
bonds as part of the local matching funds for a capital project. 
‘‘(2) MAINTENANCE
OF
EFFORT.—The Secretary shall 
approve of the use of the proceeds from the issuance of revenue 
bonds for the remainder of the net project cost only if the 
Secretary finds that the aggregate amount of financial support 
for public transportation in the urbanized area provided by 
the State and affected local governmental authorities during 
the next 3 fiscal years, as programmed in the State transpor-
tation improvement program under section 5304, is not less 
than the aggregate amount provided by the State and affected 
local governmental authorities in the urbanized area during 
the preceding 3 fiscal years. 
‘‘(3) DEBT SERVICE RESERVE.—The Secretary may reimburse 
an eligible recipient for deposits of bond proceeds in a debt 
service reserve that the recipient establishes pursuant to sec-
tion 5302(a)(1)(K) from amounts made available to the recipient 
under section 5309. 
‘‘(4) PILOT PROGRAM FOR URBANIZED AREAS.—
‘‘(A) IN GENERAL.—The Secretary shall establish a pilot 
program to reimburse not to exceed 10 eligible recipients 
for deposits of bond proceeds in a debt service reserve 
that 
the 
recipient 
establishes 
pursuant 
to 
section 
5302(a)(1)(K) from amounts made available to the recipient 
under section 5307. 
‘‘(B) REPORT.—Not later than July 31, 2008, the Sec-
retary shall submit to the Committee on Banking, Housing,
H. R. 3—474
and Urban Affairs of the Senate and the Committee on 
Transportation and Infrastructure of the House of Rep-
resentatives a report on the status and effectiveness of 
the pilot program established under subparagraph (A).’’. 
(f) SCHOOLBUS TRANSPORTATION.—Section 5323(f) is amended—
(1) by striking ‘‘(1) Financial assistance’’ and inserting the 
following: 
‘‘(1) AGREEMENTS.—Financial assistance’’; 
(2) in paragraph (1) by moving subparagraphs (A), (B), 
and (C) 2 ems to the right; and 
(3) by striking paragraph (2) and inserting the following: 
‘‘(2) VIOLATIONS.—If the Secretary finds that an applicant, 
governmental authority, or publicly owned operator has violated 
the agreement required under paragraph (1), the Secretary 
shall bar a recipient or an operator from receiving Federal 
transit assistance in an amount the Secretary considers appro-
priate.’’. 
(g) BUYING BUSES UNDER OTHER LAWS.—Section 5323(g) is 
amended by striking ‘‘103(e)(4) and 142(a) or (c)’’ each place it 
appears and inserting ‘‘133 and 142’’. 
(h) GOVERNMENT’S SHARE OF COSTS FOR CERTAIN PROJECTS.—
Section 5323(i) is amended—
(1) in the subsection heading by striking ‘‘GOVERNMENT’’ 
and inserting ‘‘GOVERNMENT’S’’; 
(2) by striking ‘‘A grant’’ and inserting the following: 
‘‘(1) EQUIPMENT FOR ADA AND CLEAN AIR ACT COMPLIANCE.—
A grant’’; 
(3) by inserting ‘‘or facilities’’ after ‘‘equipment’’ each place 
it appears; and 
(4) by adding at the end the following: 
‘‘(2) CERTAIN STATE OWNED RAILROADS.—The Government 
share for financial assistance under this chapter to a State-
owned railroad (as defined in section 603 of the Rail Safety 
and Service Improvement Act of 1982 (45 U.S.C. 1202)) shall 
be the same as the Government share under section 120(b) 
of title 23 for Federal-aid highway funds apportioned to the 
State in which the railroad operates.’’. 
(i) BUY AMERICA.—
(1) PUBLIC INTEREST WAIVER.—Section 5323(j) is amended—
(A) by redesignating paragraphs (3) through (7) as 
paragraphs (4) through (8), respectively; and 
(B) by inserting after paragraph (2) the following: 
‘‘(3) 
WRITTEN
JUSTIFICATION
FOR
PUBLIC
INTEREST 
WAIVER.—When issuing a waiver based on a public interest 
determination under paragraph (2)(A), the Secretary shall issue 
a detailed written justification as to why the waiver is in 
the public interest. The Secretary shall publish such justifica-
tion in the Federal Register and provide the public with a 
reasonable period of time for notice and comment.’’. 
(2) INELIGIBILITY FOR CONTRACTS.—Section 5323(j)(6) (as 
so redesignated) is amended by striking ‘‘Intermodal Surface 
Transportation Efficiency Act of 1991 (Public Law 102–240, 
105 Stat. 1914)’’ and inserting ‘‘Federal Public Transportation 
Act of 2005’’. 
(3) ADMINISTRATIVE REVIEW.—Section 5323(j) is amended 
by adding at the end the following:
H. R. 3—475
‘‘(9) ADMINISTRATIVE REVIEW.—A party adversely affected 
by an agency action under this subsection shall have the right 
to seek review under section 702 of title 5.’’. 
(4) REPEAL OF GENERAL WAIVER.—Subsections (b) and (c) 
of Appendix A of section 661.7 of title 49, Code of Federal 
Regulations, shall cease to be in effect beginning on the date 
of enactment of this Act. 
(5) RULEMAKING.—Not later than 180 days after the date 
of enactment of this Act, the Secretary shall issue a final 
rule on implementation of the requirements of section 5323(j) 
of title 49, United States Code (in this paragraph referred 
to as the ‘‘Buy America requirements’’). The purposes of the 
regulations shall be as follows: 
(A) MICROPROCESSOR
WAIVER.—To clarify that any 
waiver from the Buy America requirements issued under 
section 5323(j)(2) of such title for a microprocessor, com-
puter, or microcomputer applies only to a device used solely 
for the purpose of processing or storing data and does 
not extend to a product containing a microprocessor, com-
puter, or microcomputer. 
(B) DEFINITIONS.—To define the terms ‘‘end product’’, 
‘‘negotiated procurement’’, and ‘‘contractor’’ for purposes 
of part 661 of title 49, Code of Federal Regulations. In 
defining the terms, the Secretary shall develop a list of 
representative items that are subject to the Buy America 
requirements, and shall address the procurement of sys-
tems under the definition to ensure that major system 
procurements are not used to circumvent the Buy America 
requirements. 
(C) POST-AWARD
WAIVERS.—To permit a grantee to 
request a non-availability waiver from the Buy America 
requirements under section 661.7c of title 49, Code of Fed-
eral Regulations, after contract award in any case in which 
the contractor has made a certification of compliance with 
the requirements in good faith. 
(D) CERTIFICATION UNDER NEGOTIATED PROCUREMENT 
PROCESS.—In any case in which a negotiated procurement 
process is used, compliance with the Buy America require-
ments shall be determined on the basis of the certification 
submitted with the final offer. 
(j) RELATIONSHIP TO OTHER LAWS.—Section 5323(l) is amended 
to read as follows: 
‘‘(l) RELATIONSHIP TO OTHER LAWS.—Section 1001 of title 18 
applies to a certificate, submission, or statement provided under 
this chapter. The Secretary may terminate financial assistance 
under this chapter and seek reimbursement directly, or by offsetting 
amounts, available under this chapter if the Secretary determines 
that a recipient of such financial assistance has made a false 
or fraudulent statement or related act in connection with a Federal 
transit program.’’. 
(k) PREAWARD AND POSTDELIVERY REVIEW OF ROLLING STOCK 
PURCHASES.—Section 5323(m) is amended by adding at the end 
the following: ‘‘Rolling stock procurements of 20 vehicles or fewer 
made for the purpose of serving other than urbanized areas and 
urbanized areas with populations of 200,000 or fewer shall be 
subject to the same requirements as established for procurements
H. R. 3—476
of 10 or fewer buses under the post-delivery purchaser’s require-
ments certification process under section 663.37(c) of title 49, Code 
of Federal Regulations.’’. 
(l) GRANT REQUIREMENTS.—Section 5323(o) is amended by 
striking ‘‘the Transportation Infrastructure Finance and Innovation 
Act of 1998’’ and inserting ‘‘chapter 6 (other than section 609) 
of title 23’’. 
(m) 
ALTERNATIVE
FUELING
FACILITIES.—Section 
5323 
is 
amended by adding at the end the following: 
‘‘(p) ALTERNATIVE FUELING FACILITIES.—A recipient of assist-
ance under this chapter may allow the incidental use of federally 
funded alternative fueling facilities and equipment by nontransit 
public entities and private entities if—
‘‘(1) the incidental use does not interfere with the recipient’s 
public transportation operations; 
‘‘(2) all costs related to the incidental use are fully recap-
tured by the recipient from the nontransit public entity or 
private entity; 
‘‘(3) the recipient uses revenues received from the incidental 
use in excess of costs for planning, capital, and operating 
expenses that are incurred in providing public transportation; 
and 
‘‘(4) private entities pay all applicable excise taxes on fuel.’’. 
SEC. 3024. SPECIAL PROVISIONS FOR CAPITAL PROJECTS. 
(a) IN GENERAL.—Section 5324 is amended to read as follows: 
‘‘§ 5324. Special provisions for capital projects 
‘‘(a) RELOCATION
AND REAL PROPERTY REQUIREMENTS.—The 
Uniform Relocation Assistance and Real Property Acquisition Poli-
cies Act of 1970 (42 U.S.C. 4601 et seq.) shall apply to financial 
assistance for capital projects under this chapter. 
‘‘(b) CONSIDERATION
OF ECONOMIC, SOCIAL, AND ENVIRON-
MENTAL INTERESTS.—
‘‘(1) COOPERATION AND CONSULTATION.—In carrying out the 
policy of section 5301(e), the Secretary shall cooperate and 
consult with the Secretary of the Interior and the Administrator 
of the Environmental Protection Agency on each project that 
may have a substantial impact on the environment. 
‘‘(2) PUBLIC PARTICIPATION IN ENVIRONMENTAL REVIEWS.—
In performing environmental reviews, the Secretary shall 
review each transcript of a hearing submitted under section 
5323(b) to establish that an adequate opportunity to present 
views was given to all parties having a significant economic, 
social, or environmental interest in the project, and that the 
project application includes a record of—
‘‘(A) the environmental impact of the proposal; 
‘‘(B) adverse environmental effects that cannot be 
avoided; 
‘‘(C) alternatives to the proposal; and 
‘‘(D) irreversible and irretrievable impacts on the 
environment. 
‘‘(3) APPROVAL OF APPLICATIONS FOR ASSISTANCE.—
‘‘(A) FINDINGS BY THE SECRETARY.—The Secretary may 
approve an application for financial assistance for a capital 
project in accordance with this chapter only if the Secretary 
makes written findings, after reviewing the application
H. R. 3—477
and the transcript of any hearing held before a State or 
local governmental authority under section 5323(b), that—
‘‘(i) an adequate opportunity to present views was 
given to all parties having a significant economic, 
social, or environmental interest; 
‘‘(ii) the preservation and enhancement of the 
environment and the interest of the community in 
which the project is located were considered; and 
‘‘(iii) no adverse environmental effect is likely to 
result from the project, or no feasible and prudent 
alternative to the effect exists and all reasonable steps 
have been taken to minimize the effect. 
‘‘(B) HEARING.—If a hearing has not been conducted 
or the Secretary decides that the record of the hearing 
is inadequate for making the findings required by this 
subsection, the Secretary shall conduct a hearing on an 
environmental issue raised by the application after giving 
adequate notice to interested persons. 
‘‘(C) AVAILABILITY
OF
FINDINGS.—The Secretary’s 
findings under subparagraph (A) shall be made a matter 
of public record. 
‘‘(c) RAILROAD CORRIDOR PRESERVATION.—
‘‘(1) IN GENERAL.—The Secretary may assist an applicant 
to acquire railroad right-of-way before the completion of the 
environmental reviews for any project that may use the right-
of-way if the acquisition is otherwise permitted under Federal 
law. The Secretary may establish restrictions on such an 
acquisition as the Secretary determines to be necessary and 
appropriate. 
‘‘(2) 
ENVIRONMENTAL
REVIEWS.—Railroad 
right-of-way 
acquired under this subsection may not be developed in 
anticipation of the project until all required environmental 
reviews for the project have been completed.’’. 
(b) CHAPTER ANALYSIS.—The analysis for chapter 53 is amended 
by striking the item relating to section 5324 and inserting the 
following:
‘‘5324. Special provisions for capital projects.’’.
SEC. 3025. CONTRACT REQUIREMENTS. 
(a) IN GENERAL.—Section 5325 is amended to read as follows: 
‘‘§ 5325. Contract requirements 
‘‘(a) COMPETITION.—Recipients of assistance under this chapter 
shall conduct all procurement transactions in a manner that pro-
vides full and open competition as determined by the Secretary. 
‘‘(b) ARCHITECTURAL, ENGINEERING, AND DESIGN CONTRACTS.—
‘‘(1) PROCEDURES FOR AWARDING CONTRACT.—A contract or 
requirement 
for 
program 
management, 
architectural 
engineering, construction management, a feasibility study, and 
preliminary engineering, design, architectural, engineering, 
surveying, mapping, or related services for a project for which 
Federal assistance is provided under this chapter shall be 
awarded in the same way as a contract for architectural and 
engineering services is negotiated under chapter 11 of title 
40 or an equivalent qualifications-based requirement of a State. 
‘‘(2) EFFECT OF STATE LAWS.—Paragraph (1) does not apply 
to the extent a State has adopted by law, before the date