H. R. 4348—218 
‘‘(iv) the date on which a notification was provided 
to the project sponsor regarding whether the project 
was approved or disapproved; and 
‘‘(v) if the project was not approved, the reason 
for the disapproval. 
‘‘(B) CORRESPONDENCE.—Each report under paragraph 
(1) shall include copies of any correspondence provided 
to the project sponsor in accordance with section 602(d).’’. 
DIVISION B—PUBLIC TRANSPORTATION 
SEC. 20001. SHORT TITLE. 
This division may be cited as the ‘‘Federal Public Transpor-
tation Act of 2012’’. 
SEC. 20002. REPEALS. 
(a) CHAPTER 53.—Chapter 53 of title 49, United States Code, 
is amended by striking sections 5308, 5316, 5317, 5320, and 5328. 
(b) TRANSPORTATION EQUITY ACT FOR THE 21ST CENTURY.— 
Section 3038 of the Transportation Equity Act for the 21st Century 
(49 U.S.C. 5310 note) is repealed. 
(c) SAFETEA–LU.—The following provisions are repealed: 
(1) Section 3009(i) of SAFETEA–LU (Public Law 109–59; 
119 Stat. 1572). 
(2) Section 3011(c) of SAFETEA–LU (49 U.S.C. 5309 note). 
(3) Section 3012(b) of SAFETEA–LU (49 U.S.C. 5310 note). 
(4) Section 3045 of SAFETEA–LU (49 U.S.C. 5308 note). 
(5) Section 3046 of SAFETEA–LU (49 U.S.C. 5338 note). 
SEC. 20003. POLICIES AND PURPOSES. 
Section 5301 of title 49, United States Code, is amended to 
read as follows: 
‘‘§ 5301. Policies and purposes 
‘‘(a) DECLARATION OF POLICY.—It is in the interest of the United 
States, including the economic interest of the United States, to 
foster the development and revitalization of public transportation 
systems with the cooperation of both public transportation compa-
nies and private companies engaged in public transportation. 
‘‘(b) GENERAL PURPOSES.—The purposes of this chapter are 
to— 
‘‘(1) provide funding to support public transportation; 
‘‘(2) improve the development and delivery of capital 
projects; 
‘‘(3) establish standards for the state of good repair of 
public transportation infrastructure and vehicles; 
‘‘(4) promote continuing, cooperative, and comprehensive 
planning that improves the performance of the transportation 
network; 
‘‘(5) establish a technical assistance program to assist 
recipients under this chapter to more effectively and efficiently 
provide public transportation service; 
‘‘(6) continue Federal support for public transportation pro-
viders to deliver high quality service to all users, including 
individuals with disabilities, seniors, and individuals who 
depend on public transportation;
H. R. 4348—219 
‘‘(7) support research, development, demonstration, and 
deployment projects dedicated to assisting in the delivery of 
efficient and effective public transportation service; and 
‘‘(8) promote the development of the public transportation 
workforce.’’. 
SEC. 20004. DEFINITIONS. 
Section 5302 of title 49, United States Code, is amended to 
read as follows: 
‘‘§ 5302. Definitions 
‘‘Except as otherwise specifically provided, in this chapter the 
following definitions apply: 
‘‘(1) ASSOCIATED TRANSIT IMPROVEMENT.—The term ‘associ-
ated transit improvement’ means, with respect to any project 
or an area to be served by a project, projects that are designed 
to enhance public transportation service or use and that are 
physically or functionally related to transit facilities. Eligible 
projects are— 
‘‘(A) historic preservation, rehabilitation, and operation 
of historic public transportation buildings, structures, and 
facilities (including historic bus and railroad facilities) 
intended for use in public transportation service; 
‘‘(B) bus shelters; 
‘‘(C) landscaping and streetscaping, including benches, 
trash receptacles, and street lights; 
‘‘(D) pedestrian access and walkways; 
‘‘(E) bicycle access, including bicycle storage facilities 
and installing equipment for transporting bicycles on public 
transportation vehicles; 
‘‘(F) signage; or 
‘‘(G) enhanced access for persons with disabilities to 
public transportation. 
‘‘(2) BUS
RAPID
TRANSIT
SYSTEM.—The term ‘bus rapid 
transit system’ means a bus transit system— 
‘‘(A) in which the majority of each line operates in 
a separated right-of-way dedicated for public transportation 
use during peak periods; and 
‘‘(B) that includes features that emulate the services 
provided by rail fixed guideway public transportation sys-
tems, including— 
‘‘(i) defined stations; 
‘‘(ii) traffic signal priority for public transportation 
vehicles; 
‘‘(iii) short headway bidirectional services for a 
substantial part of weekdays and weekend days; and 
‘‘(iv) any other features the Secretary may deter-
mine are necessary to produce high-quality public 
transportation services that emulate the services pro-
vided by rail fixed guideway public transportation sys-
tems. 
‘‘(3) CAPITAL PROJECT.—The term ‘capital project’ means 
a project for— 
‘‘(A) acquiring, constructing, supervising, or inspecting 
equipment or a facility for use in public transportation, 
expenses incidental to the acquisition or construction
H. R. 4348—220 
(including designing, engineering, location surveying, map-
ping, and acquiring rights-of-way), payments for the capital 
portions of rail trackage rights agreements, transit-related 
intelligent transportation systems, relocation assistance, 
acquiring replacement housing sites, and acquiring, con-
structing, 
relocating, 
and 
rehabilitating 
replacement 
housing; 
‘‘(B) rehabilitating a bus; 
‘‘(C) remanufacturing a bus; 
‘‘(D) overhauling rail rolling stock; 
‘‘(E) preventive maintenance; 
‘‘(F) leasing equipment or a facility for use in public 
transportation, subject to regulations that the Secretary 
prescribes limiting the leasing arrangements to those that 
are more cost-effective than purchase or construction; 
‘‘(G) a joint development improvement that— 
‘‘(i) enhances economic development or incor-
porates private investment, such as commercial and 
residential development; 
‘‘(ii)(I) 
enhances 
the 
effectiveness 
of 
public 
transportation and is related physically or functionally 
to public transportation; or 
‘‘(II) establishes new or enhanced coordination 
between public transportation and other transpor-
tation; 
‘‘(iii) provides a fair share of revenue that will 
be used for public transportation; 
‘‘(iv) provides that a person making an agreement 
to occupy space in a facility constructed under this 
paragraph shall pay a fair share of the costs of the 
facility through rental payments and other means; 
‘‘(v) may include— 
‘‘(I) property acquisition; 
‘‘(II) demolition of existing structures; 
‘‘(III) site preparation; 
‘‘(IV) utilities; 
‘‘(V) building foundations; 
‘‘(VI) walkways; 
‘‘(VII) pedestrian and bicycle access to a public 
transportation facility; 
‘‘(VIII) construction, renovation, and improve-
ment of intercity bus and intercity rail stations 
and terminals; 
‘‘(IX) renovation and improvement of historic 
transportation facilities; 
‘‘(X) open space; 
‘‘(XI) safety and security equipment and facili-
ties (including lighting, surveillance, and related 
intelligent transportation system applications); 
‘‘(XII) facilities that incorporate community 
services such as daycare or health care; 
‘‘(XIII) a capital project for, and improving, 
equipment or a facility for an intermodal transfer 
facility or transportation mall; and 
‘‘(XIV) construction of space for commercial 
uses; and
H. R. 4348—221 
‘‘(vi) does not include outfitting of commercial 
space (other than an intercity bus or rail station or 
terminal) or a part of a public facility not related 
to public transportation; 
‘‘(H) the introduction of new technology, through 
innovative and improved products, into public transpor-
tation; 
‘‘(I) the provision of nonfixed route paratransit 
transportation services in accordance with section 223 of 
the Americans with Disabilities Act of 1990 (42 U.S.C. 
12143), but only for grant recipients that are in compliance 
with applicable requirements of that Act, including both 
fixed route and demand responsive service, and only for 
amounts not to exceed 10 percent of such recipient’s annual 
formula apportionment under sections 5307 and 5311; 
‘‘(J) establishing a debt service reserve, made up of 
deposits with a bondholder’s trustee, to ensure the timely 
payment of principal and interest on bonds issued by a 
grant recipient to finance an eligible project under this 
chapter; 
‘‘(K) mobility management— 
‘‘(i) consisting of short-range planning and manage-
ment activities and projects for improving coordination 
among public transportation and other transportation 
service providers carried out by a recipient or sub-
recipient through an agreement entered into with a 
person, including a governmental entity, under this 
chapter (other than section 5309); but 
‘‘(ii) excluding operating public transportation serv-
ices; or 
‘‘(L) associated capital maintenance, including— 
‘‘(i) equipment, tires, tubes, and material, each 
costing at least .5 percent of the current fair market 
value of rolling stock comparable to the rolling stock 
for which the equipment, tires, tubes, and material 
are to be used; and 
‘‘(ii) reconstruction of equipment and material, 
each of which after reconstruction will have a fair 
market value of at least .5 percent of the current 
fair market value of rolling stock comparable to the 
rolling stock for which the equipment and material 
will be used. 
‘‘(4) 
DESIGNATED
RECIPIENT.—The 
term 
‘designated 
recipient’ means— 
‘‘(A) an entity designated, in accordance with the plan-
ning process under sections 5303 and 5304, by the Governor 
of a State, responsible local officials, and publicly owned 
operators of public transportation, to receive and apportion 
amounts under section 5336 to urbanized areas of 200,000 
or more in population; or 
‘‘(B) a State or regional authority, if the authority 
is responsible under the laws of a State for a capital 
project and for financing and directly providing public 
transportation. 
‘‘(5) DISABILITY.—The term ‘disability’ has the same 
meaning as in section 3(1) of the Americans with Disabilities 
Act of 1990 (42 U.S.C. 12102).
H. R. 4348—222 
‘‘(6) EMERGENCY REGULATION.—The term ‘emergency regu-
lation’ means a regulation— 
‘‘(A) that is effective temporarily before the expiration 
of the otherwise specified periods of time for public notice 
and comment under section 5334(c); and 
‘‘(B) prescribed by the Secretary as the result of a 
finding that a delay in the effective date of the regulation— 
‘‘(i) would injure seriously an important public 
interest; 
‘‘(ii) would frustrate substantially legislative policy 
and intent; or 
‘‘(iii) would damage seriously a person or class 
without serving an important public interest. 
‘‘(7) FIXED GUIDEWAY.—The term ‘fixed guideway’ means 
a public transportation facility— 
‘‘(A) using and occupying a separate right-of-way for 
the exclusive use of public transportation; 
‘‘(B) using rail; 
‘‘(C) using a fixed catenary system; 
‘‘(D) for a passenger ferry system; or 
‘‘(E) for a bus rapid transit system. 
‘‘(8) GOVERNOR.—The term ‘Governor’— 
‘‘(A) means the Governor of a State, the mayor of 
the District of Columbia, and the chief executive officer 
of a territory of the United States; and 
‘‘(B) includes the designee of the Governor. 
‘‘(9) JOB ACCESS AND REVERSE COMMUTE PROJECT.— 
‘‘(A) IN GENERAL.—The term ‘job access and reverse 
commute project’ means a transportation project to finance 
planning, capital, and operating costs that support 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 transportation projects that 
facilitate the provision of public transportation services 
from urbanized areas and rural areas to suburban employ-
ment locations. 
‘‘(B) DEFINITIONS.—In this paragraph: 
‘‘(i) 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 Service Block Grant Act (42 
U.S.C. 9902(2)), including any revision required by that 
section) for a family of the size involved. 
‘‘(ii) WELFARE
RECIPIENT.—The term ‘welfare 
recipient’ means an individual who has received assist-
ance under a State or tribal program funded under 
part A of title IV of the Social Security Act (42 U.S.C. 
601 et seq.) at any time during the 3-year period before 
the date on which the applicant applies for a grant 
under section 5307 or 5311. 
‘‘(10) LOCAL GOVERNMENTAL AUTHORITY.—The term ‘local 
governmental authority’ includes— 
‘‘(A) a political subdivision of a State; 
‘‘(B) an authority of at least 1 State or political subdivi-
sion of a State;
H. R. 4348—223 
‘‘(C) an Indian tribe; and 
‘‘(D) a public corporation, board, or commission estab-
lished under the laws of a State. 
‘‘(11) LOW-INCOME INDIVIDUAL.—The term ‘low-income indi-
vidual’ 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. 
‘‘(12) NET PROJECT COST.—The term ‘net project cost’ means 
the part of a project that reasonably cannot be financed from 
revenues. 
‘‘(13) NEW BUS MODEL.—The term ‘new bus model’ means 
a bus model (including a model using alternative fuel)— 
‘‘(A) that has not been used in public transportation 
in the United States before the date of production of the 
model; or 
‘‘(B) used in public transportation in the United States, 
but being produced with a major change in configuration 
or components. 
‘‘(14) PUBLIC TRANSPORTATION.—The term ‘public transpor-
tation’— 
‘‘(A) means regular, continuing shared-ride surface 
transportation services that are open to the general public 
or open to a segment of the general public defined by 
age, disability, or low income; and 
‘‘(B) does not include— 
‘‘(i) intercity passenger rail transportation provided 
by the entity described in chapter 243 (or a successor 
to such entity); 
‘‘(ii) intercity bus service; 
‘‘(iii) charter bus service; 
‘‘(iv) school bus service; 
‘‘(v) sightseeing service; 
‘‘(vi) courtesy shuttle service for patrons of one 
or more specific establishments; or 
‘‘(vii) intra-terminal or intra-facility shuttle serv-
ices. 
‘‘(15) REGULATION.—The term ‘regulation’ means any part 
of a statement of general or particular applicability of the 
Secretary designed to carry out, interpret, or prescribe law 
or policy in carrying out this chapter. 
‘‘(16) RURAL AREA.—The term ‘rural area’ means an area 
encompassing a population of less than 50,000 people that 
has not been designated in the most recent decennial census 
as an ‘urbanized area’ by the Secretary of Commerce. 
‘‘(17) SECRETARY.—The term ‘Secretary’ means the Sec-
retary of Transportation. 
‘‘(18) SENIOR.—The term ‘senior’ means an individual who 
is 65 years of age or older. 
‘‘(19) STATE.—The term ‘State’ means a State of the United 
States, the District of Columbia, Puerto Rico, the Northern 
Mariana Islands, Guam, American Samoa, and the Virgin 
Islands. 
‘‘(20) STATE
OF
GOOD
REPAIR.—The term ‘state of good 
repair’ has the meaning given that term by the Secretary, 
by rule, under section 5326(b).
H. R. 4348—224 
‘‘(21) TRANSIT.—The term ‘transit’ means public transpor-
tation. 
‘‘(22) URBAN AREA.—The term ‘urban area’ means an area 
that includes a municipality or other built-up place that the 
Secretary, after considering local patterns and trends of urban 
growth, decides is appropriate for a local public transportation 
system to serve individuals in the locality. 
‘‘(23) URBANIZED AREA.—The term ‘urbanized area’ means 
an area encompassing a population of not less than 50,000 
people that has been defined and designated in the most recent 
decennial census as an ‘urbanized area’ by the Secretary of 
Commerce.’’. 
SEC. 20005. METROPOLITAN TRANSPORTATION PLANNING. 
(a) AMENDMENT.—Section 5303 of title 49, United States Code, 
is amended to read as follows: 
‘‘§ 5303. Metropolitan transportation planning 
‘‘(a) POLICY.—It is in the national interest— 
‘‘(1) to encourage and promote the safe and efficient 
management, operation, and development of surface transpor-
tation systems that will serve the mobility needs of people 
and freight and foster economic growth and development within 
and between States and urbanized areas, while minimizing 
transportation-related fuel consumption and air pollution 
through metropolitan and statewide transportation planning 
processes identified in this chapter; and 
‘‘(2) to encourage the continued improvement and evolution 
of the metropolitan and statewide transportation planning proc-
esses by metropolitan planning organizations, State depart-
ments of transportation, and public transit operators as guided 
by the planning factors identified in subsection (h) and section 
5304(d). 
‘‘(b) DEFINITIONS.—In this section and section 5304, the fol-
lowing definitions apply: 
‘‘(1) METROPOLITAN PLANNING AREA.—The term ‘metropoli-
tan planning area’ means the geographic area determined by 
agreement between the metropolitan planning organization for 
the area and the Governor under subsection (e). 
‘‘(2) METROPOLITAN
PLANNING
ORGANIZATION.—The term 
‘metropolitan planning organization’ means the policy board 
of an organization established as a result of the designation 
process under subsection (d). 
‘‘(3) NONMETROPOLITAN AREA.—The term ‘nonmetropolitan 
area’ means a geographic area outside designated metropolitan 
planning areas. 
‘‘(4) NONMETROPOLITAN LOCAL OFFICIAL.—The term ‘non-
metropolitan local official’ means elected and appointed officials 
of general purpose local government in a nonmetropolitan area 
with responsibility for transportation. 
‘‘(5) REGIONAL TRANSPORTATION PLANNING ORGANIZATION.— 
The term ‘regional transportation planning organization’ means 
a policy board of an organization established as the result 
of a designation under section 5304(l). 
‘‘(6) TIP.—The term ‘TIP’ means a transportation improve-
ment program developed by a metropolitan planning organiza-
tion under subsection (j).
H. R. 4348—225 
‘‘(7) URBANIZED AREA.—The term ‘urbanized area’ means 
a geographic area with a population of 50,000 or more, as 
determined by the Bureau of the Census. 
‘‘(c) GENERAL REQUIREMENTS.— 
‘‘(1) DEVELOPMENT OF LONG-RANGE PLANS AND TIPS.—To 
accomplish the objectives in subsection (a), metropolitan plan-
ning organizations designated under subsection (d), in coopera-
tion with the State and public transportation operators, shall 
develop long-range transportation plans and transportation 
improvement programs through a performance-driven, outcome- 
based approach to planning for metropolitan areas of the State. 
‘‘(2) CONTENTS.—The plans and TIPs for each metropolitan 
area shall provide for the development and integrated manage-
ment and operation of transportation systems and facilities 
(including accessible pedestrian walkways and bicycle transpor-
tation facilities) that will function as an intermodal transpor-
tation system for the metropolitan planning area and as an 
integral part of an intermodal transportation system for the 
State and the United States. 
‘‘(3) PROCESS OF DEVELOPMENT.—The process for developing 
the plans and TIPs shall provide for consideration of all modes 
of transportation and shall be continuing, cooperative, and com-
prehensive to the degree appropriate, based on the complexity 
of the transportation problems to be addressed. 
‘‘(d) DESIGNATION
OF
METROPOLITAN
PLANNING
ORGANIZA-
TIONS.— 
‘‘(1) IN GENERAL.—To carry out the transportation planning 
process required by this section, a metropolitan planning 
organization shall be designated for each urbanized area with 
a population of more than 50,000 individuals— 
‘‘(A) by agreement between the Governor and units 
of general purpose local government that together represent 
at least 75 percent of the affected population (including 
the largest incorporated city (based on population) as deter-
mined by the Bureau of the Census); or 
‘‘(B) in accordance with procedures established by 
applicable State or local law. 
‘‘(2) STRUCTURE.—Not later than 2 years after the date 
of enactment of the Federal Public Transportation Act of 2012, 
each metropolitan planning organization that serves an area 
designated as a transportation management area shall consist 
of— 
‘‘(A) local elected officials; 
‘‘(B) officials of public agencies that administer or 
operate major modes of transportation in the metropolitan 
area, including representation by providers of public 
transportation; and 
‘‘(C) appropriate State officials. 
‘‘(3) LIMITATION
ON
STATUTORY
CONSTRUCTION.—Nothing 
in this subsection shall be construed to interfere with the 
authority, under any State law in effect on December 18, 1991, 
of a public agency with multimodal transportation responsibil-
ities— 
‘‘(A) to develop the plans and TIPs for adoption by 
a metropolitan planning organization; and
H. R. 4348—226 
‘‘(B) to develop long-range capital plans, coordinate 
transit services and projects, and carry out other activities 
pursuant to State law. 
‘‘(4) CONTINUING DESIGNATION.—A designation of a metro-
politan planning organization under this subsection or any 
other provision of law shall remain in effect until the metropoli-
tan planning organization is redesignated under paragraph (5). 
‘‘(5) REDESIGNATION PROCEDURES.— 
‘‘(A) IN GENERAL.—A metropolitan planning organiza-
tion may be redesignated by agreement between the Gov-
ernor and units of general purpose local government that 
together represent at least 75 percent of the existing plan-
ning area population (including the largest incorporated 
city (based on population) as determined by the Bureau 
of the Census) as appropriate to carry out this section. 
‘‘(B) 
RESTRUCTURING.—A 
metropolitan 
planning 
organization may be restructured to meet the requirements 
of paragraph (2) without undertaking a redesignation. 
‘‘(6) DESIGNATION OF MORE THAN 1 METROPOLITAN PLANNING 
ORGANIZATION.—More than 1 metropolitan planning organiza-
tion may be designated within an existing metropolitan plan-
ning area only if the Governor and the existing metropolitan 
planning organization determine that the size and complexity 
of the existing metropolitan planning area make designation 
of more than 1 metropolitan planning organization for the 
area appropriate. 
‘‘(e) METROPOLITAN PLANNING AREA BOUNDARIES.— 
‘‘(1) IN GENERAL.—For the purposes of this section, the 
boundaries of a metropolitan planning area shall be determined 
by agreement between the metropolitan planning organization 
and the Governor. 
‘‘(2) INCLUDED AREA.—Each metropolitan planning area— 
‘‘(A) shall encompass at least the existing urbanized 
area and the contiguous area expected to become urbanized 
within a 20-year forecast period for the transportation plan; 
and 
‘‘(B) may encompass the entire metropolitan statistical 
area or consolidated metropolitan statistical area, as 
defined by the Bureau of the Census. 
‘‘(3) IDENTIFICATION
OF
NEW
URBANIZED
AREAS
WITHIN 
EXISTING PLANNING AREA BOUNDARIES.—The designation by the 
Bureau of the Census of new urbanized areas within an existing 
metropolitan planning area shall not require the redesignation 
of the existing metropolitan planning organization. 
‘‘(4) EXISTING
METROPOLITAN
PLANNING
AREAS
IN
NON-
ATTAINMENT.— 
‘‘(A) IN
GENERAL.—Notwithstanding paragraph (2), 
except as provided in subparagraph (B), in the case of 
an urbanized area designated as a nonattainment area 
for ozone or carbon monoxide under the Clean Air Act 
(42 U.S.C. 7401 et seq.) as of the date of enactment of 
the SAFETEA–LU, the boundaries of the metropolitan 
planning area in existence as of such date of enactment 
shall be retained. 
‘‘(B) 
EXCEPTION.—The 
boundaries 
described 
in 
subparagraph (A) may be adjusted by agreement of the
H. R. 4348—227 
Governor and affected metropolitan planning organizations 
in the manner described in subsection (d)(5). 
‘‘(5) NEW METROPOLITAN PLANNING AREAS IN NONATTAIN-
MENT.—In the case of an urbanized area designated after the 
date of enactment of the SAFETEA–LU, as a nonattainment 
area for ozone or carbon monoxide, the boundaries of the metro-
politan planning area— 
‘‘(A) shall be established in the manner described in 
subsection (d)(1); 
‘‘(B) shall encompass the areas described in paragraph 
(2)(A); 
‘‘(C) may encompass the areas described in paragraph 
(2)(B); and 
‘‘(D) may address any nonattainment area identified 
under the Clean Air Act (42 U.S.C. 7401 et seq.) for ozone 
or carbon monoxide. 
‘‘(f) COORDINATION IN MULTISTATE AREAS.— 
‘‘(1) IN GENERAL.—The Secretary shall encourage each Gov-
ernor with responsibility for a portion of a multistate metropoli-
tan area and the appropriate metropolitan planning organiza-
tions to provide coordinated transportation planning for the 
entire metropolitan area. 
‘‘(2) INTERSTATE COMPACTS.—The consent of Congress is 
granted to any 2 or more States— 
‘‘(A) to enter into agreements or compacts, not in con-
flict with any law of the United States, for cooperative 
efforts and mutual assistance in support of activities 
authorized under this section as the activities pertain to 
interstate areas and localities within the States; and 
‘‘(B) to establish such agencies, joint or otherwise, as 
the States may determine desirable for making the agree-
ments and compacts effective. 
‘‘(3) RESERVATION OF RIGHTS.—The right to alter, amend, 
or repeal interstate compacts entered into under this subsection 
is expressly reserved. 
‘‘(g) MPO CONSULTATION IN PLAN AND TIP COORDINATION.— 
‘‘(1) NONATTAINMENT AREAS.—If more than 1 metropolitan 
planning organization has authority within a metropolitan area 
or an area which is designated as a nonattainment area for 
ozone or carbon monoxide under the Clean Air Act (42 U.S.C. 
7401 et seq.), each metropolitan planning organization shall 
consult with the other metropolitan planning organizations des-
ignated for such area and the State in the coordination of 
plans and TIPs required by this section. 
‘‘(2) TRANSPORTATION IMPROVEMENTS LOCATED IN MULTIPLE 
MPOS.—If a transportation improvement, funded under this 
chapter or title 23, is located within the boundaries of more 
than 1 metropolitan planning area, the metropolitan planning 
organizations shall coordinate plans and TIPs regarding the 
transportation improvement. 
‘‘(3) RELATIONSHIP WITH OTHER PLANNING OFFICIALS.— 
‘‘(A) IN GENERAL.—The Secretary shall encourage each 
metropolitan planning organization to consult with officials 
responsible for other types of planning activities that are 
affected by transportation in the area (including State and
H. R. 4348—228 
local planned growth, economic development, environ-
mental protection, airport operations, and freight move-
ments) or to coordinate its planning process, to the max-
imum extent practicable, with such planning activities. 
‘‘(B) REQUIREMENTS.—Under the metropolitan plan-
ning process, transportation plans and TIPs shall be devel-
oped with due consideration of other related planning 
activities within the metropolitan area, and the process 
shall provide for the design and delivery of transportation 
services within the metropolitan area that are provided 
by— 
‘‘(i) recipients of assistance under this chapter; 
‘‘(ii) governmental agencies and nonprofit organiza-
tions (including representatives of the agencies and 
organizations) that receive Federal assistance from a 
source other than the Department of Transportation 
to provide nonemergency transportation services; and 
‘‘(iii) recipients of assistance under section 204 of 
title 23. 
‘‘(h) SCOPE OF PLANNING PROCESS.— 
‘‘(1) IN GENERAL.—The metropolitan planning process for 
a metropolitan planning area under this section shall provide 
for consideration of projects and strategies that will— 
‘‘(A) support the economic vitality of the metropolitan 
area, especially by enabling global competitiveness, produc-
tivity, and efficiency; 
‘‘(B) increase the safety of the transportation system 
for motorized and nonmotorized users; 
‘‘(C) increase the security of the transportation system 
for motorized and nonmotorized users; 
‘‘(D) increase the accessibility and mobility of people 
and for freight; 
‘‘(E) protect and enhance the environment, promote 
energy conservation, improve the quality of life, and pro-
mote consistency between transportation improvements 
and State and local planned growth and economic develop-
ment patterns; 
‘‘(F) enhance the integration and connectivity of the 
transportation system, across and between modes, for 
people and freight; 
‘‘(G) promote efficient system management and oper-
ation; and 
‘‘(H) emphasize the preservation of the existing 
transportation system. 
‘‘(2) PERFORMANCE-BASED APPROACH.— 
‘‘(A) IN
GENERAL.—The metropolitan transportation 
planning process shall provide for the establishment and 
use of a performance-based approach to transportation 
decisionmaking to support the national goals described in 
section 150(b) of title 23 and the general purposes described 
in section 5301. 
‘‘(B) PERFORMANCE TARGETS.— 
‘‘(i) SURFACE TRANSPORTATION PERFORMANCE TAR-
GETS.— 
‘‘(I) IN GENERAL.—Each metropolitan planning 
organization shall establish performance targets 
that address the performance measures described
H. R. 4348—229 
in section 150(c) of title 23, where applicable, to 
use in tracking progress towards attainment of 
critical outcomes for the region of the metropolitan 
planning organization. 
‘‘(II) COORDINATION.—Selection of performance 
targets by a metropolitan planning organization 
shall be coordinated with the relevant State to 
ensure consistency, to the maximum extent prac-
ticable. 
‘‘(ii) PUBLIC TRANSPORTATION PERFORMANCE TAR-
GETS.—Selection of performance targets by a metropoli-
tan planning organization shall be coordinated, to the 
maximum extent practicable, with providers of public 
transportation to ensure consistency with sections 
5326(c) and 5329(d). 
‘‘(C) TIMING.—Each metropolitan planning organization 
shall establish the performance targets under subpara-
graph (B) not later than 180 days after the date on which 
the relevant State or provider of public transportation 
establishes the performance targets. 
‘‘(D) INTEGRATION
OF
OTHER
PERFORMANCE-BASED 
PLANS.—A 
metropolitan 
planning 
organization 
shall 
integrate in the metropolitan transportation planning 
process, directly or by reference, the goals, objectives, 
performance measures, and targets described in other State 
transportation plans and transportation processes, as well 
as any plans developed by recipients of assistance under 
this chapter, required as part of a performance-based pro-
gram. 
‘‘(3) FAILURE TO CONSIDER FACTORS.—The failure to con-
sider any factor specified in paragraphs (1) and (2) shall not 
be reviewable by any court under this chapter, title 23, sub-
chapter II of chapter 5 of title 5, or chapter 7 of title 5 in 
any matter affecting a transportation plan, a TIP, a project 
or strategy, or the certification of a planning process. 
‘‘(i) DEVELOPMENT OF TRANSPORTATION PLAN.— 
‘‘(1) REQUIREMENTS.— 
‘‘(A) 
IN
GENERAL.—Each 
metropolitan 
planning 
organization shall prepare and update a transportation 
plan for its metropolitan planning area in accordance with 
the requirements of this subsection. 
‘‘(B) FREQUENCY.— 
‘‘(i) IN
GENERAL.—The metropolitan planning 
organization shall prepare and update such plan every 
4 years (or more frequently, if the metropolitan plan-
ning organization elects to update more frequently) 
in the case of each of the following: 
‘‘(I) Any area designated as nonattainment, 
as defined in section 107(d) of the Clean Air Act 
(42 U.S.C. 7407(d)). 
‘‘(II) Any area that was nonattainment and 
subsequently designated to attainment in accord-
ance with section 107(d)(3) of that Act (42 U.S.C. 
7407(d)(3)) and that is subject to a maintenance 
plan under section 175A of that Act (42 U.S.C. 
7505a).
H. R. 4348—230 
‘‘(ii) OTHER AREAS.—In the case of any other area 
required to have a transportation plan in accordance 
with the requirements of this subsection, the metropoli-
tan planning organization shall prepare and update 
such plan every 5 years unless the metropolitan plan-
ning organization elects to update more frequently. 
‘‘(2) TRANSPORTATION PLAN.—A transportation plan under 
this section shall be in a form that the Secretary determines 
to be appropriate and shall contain, at a minimum, the fol-
lowing: 
‘‘(A) IDENTIFICATION OF TRANSPORTATION FACILITIES.— 
‘‘(i) IN
GENERAL.—An identification of transpor-
tation facilities (including major roadways, transit, 
multimodal and intermodal facilities, nonmotorized 
transportation facilities, and intermodal connectors) 
that should function as an integrated metropolitan 
transportation system, giving emphasis to those facili-
ties that serve important national and regional 
transportation functions. 
‘‘(ii) FACTORS.—In formulating the transportation 
plan, the metropolitan planning organization shall con-
sider factors described in subsection (h) as the factors 
relate to a 20-year forecast period. 
‘‘(B) 
PERFORMANCE
MEASURES
AND
TARGETS.—A 
description of the performance measures and performance 
targets used in assessing the performance of the transpor-
tation system in accordance with subsection (h)(2). 
‘‘(C) 
SYSTEM
PERFORMANCE
REPORT.—A 
system 
performance report and subsequent updates evaluating the 
condition and performance of the transportation system 
with respect to the performance targets described in sub-
section (h)(2), including— 
‘‘(i) progress achieved by the metropolitan planning 
organization in meeting the performance targets in 
comparison with system performance recorded in pre-
vious reports; and 
‘‘(ii) for metropolitan planning organizations that 
voluntarily elect to develop multiple scenarios, an anal-
ysis of how the preferred scenario has improved the 
conditions and performance of the transportation 
system and how changes in local policies and invest-
ments have impacted the costs necessary to achieve 
the identified performance targets. 
‘‘(D) MITIGATION ACTIVITIES.— 
‘‘(i) IN GENERAL.—A long-range transportation plan 
shall include a discussion of types of potential environ-
mental mitigation activities and potential areas to 
carry out these activities, including activities that may 
have the greatest potential to restore and maintain 
the environmental functions affected by the plan. 
‘‘(ii) CONSULTATION.—The discussion shall be 
developed in consultation with Federal, State, and 
tribal wildlife, land management, and regulatory agen-
cies. 
‘‘(E) FINANCIAL PLAN.— 
‘‘(i) IN GENERAL.—A financial plan that—
H. R. 4348—231 
‘‘(I) demonstrates how the adopted transpor-
tation plan can be implemented; 
‘‘(II) indicates resources from public and pri-
vate sources that are reasonably expected to be 
made available to carry out the plan; and 
‘‘(III) recommends any additional financing 
strategies for needed projects and programs. 
‘‘(ii) INCLUSIONS.—The financial plan may include, 
for illustrative purposes, additional projects that would 
be included in the adopted transportation plan if 
reasonable additional resources beyond those identified 
in the financial plan were available. 
‘‘(iii) COOPERATIVE
DEVELOPMENT.—For the pur-
pose of developing the transportation plan, the metro-
politan planning organization, transit operator, and 
State shall cooperatively develop estimates of funds 
that will be available to support plan implementation. 
‘‘(F) OPERATIONAL
AND
MANAGEMENT
STRATEGIES.— 
Operational and management strategies to improve the 
performance of existing transportation facilities to relieve 
vehicular congestion and maximize the safety and mobility 
of people and goods. 
‘‘(G) CAPITAL INVESTMENT AND OTHER STRATEGIES.— 
Capital investment and other strategies to preserve the 
existing and projected future metropolitan transportation 
infrastructure 
and 
provide 
for 
multimodal 
capacity 
increases based on regional priorities and needs. 
‘‘(H) TRANSPORTATION
AND
TRANSIT
ENHANCEMENT 
ACTIVITIES.—Proposed transportation and transit enhance-
ment activities. 
‘‘(3) COORDINATION
WITH
CLEAN
AIR
ACT
AGENCIES.—In 
metropolitan areas that are in nonattainment for ozone or 
carbon monoxide under the Clean Air Act (42 U.S.C. 7401 
et seq.), the metropolitan planning organization shall coordinate 
the development of a transportation plan with the process 
for development of the transportation control measures of the 
State implementation plan required by that Act. 
‘‘(4) OPTIONAL SCENARIO DEVELOPMENT.— 
‘‘(A) IN GENERAL.—A metropolitan planning organiza-
tion may, while fitting the needs and complexity of its 
community, voluntarily elect to develop multiple scenarios 
for consideration as part of the development of the metro-
politan transportation plan, in accordance with subpara-
graph (B). 
‘‘(B) RECOMMENDED
COMPONENTS.—A metropolitan 
planning organization that chooses to develop multiple sce-
narios under subparagraph (A) shall be encouraged to con-
sider— 
‘‘(i) potential regional investment strategies for the 
planning horizon; 
‘‘(ii) assumed distribution of population and 
employment; 
‘‘(iii) a scenario that, to the maximum extent prac-
ticable, maintains baseline conditions for the perform-
ance measures identified in subsection (h)(2);
H. R. 4348—232 
‘‘(iv) a scenario that improves the baseline condi-
tions for as many of the performance measures identi-
fied in subsection (h)(2) as possible; 
‘‘(v) revenue constrained scenarios based on the 
total revenues expected to be available over the forecast 
period of the plan; and 
‘‘(vi) estimated costs and potential revenues avail-
able to support each scenario. 
‘‘(C) METRICS.—In addition to the performance meas-
ures identified in section 150(c) of title 23, metropolitan 
planning organizations may evaluate scenarios developed 
under this paragraph using locally-developed measures. 
‘‘(5) CONSULTATION.— 
‘‘(A) IN
GENERAL.—In each metropolitan area, the 
metropolitan planning organization shall consult, as appro-
priate, with State and local agencies responsible for land 
use management, natural resources, environmental protec-
tion, conservation, and historic preservation concerning the 
development of a long-range transportation plan. 
‘‘(B) ISSUES.—The consultation shall involve, as appro-
priate— 
‘‘(i) comparison of transportation plans with State 
conservation plans or maps, if available; or 
‘‘(ii) comparison of transportation plans to inven-
tories of natural or historic resources, if available. 
‘‘(6) PARTICIPATION BY INTERESTED PARTIES.— 
‘‘(A) 
IN
GENERAL.—Each 
metropolitan 
planning 
organization shall provide citizens, affected public agencies, 
representatives of public transportation employees, freight 
shippers, providers of freight transportation services, pri-
vate providers of transportation, representatives of users 
of public transportation, representatives of users of pedes-
trian walkways and bicycle transportation facilities, rep-
resentatives of the disabled, and other interested parties 
with a reasonable opportunity to comment on the transpor-
tation plan. 
‘‘(B) CONTENTS OF PARTICIPATION PLAN.—A participa-
tion plan— 
‘‘(i) shall be developed in consultation with all 
interested parties; and 
‘‘(ii) shall provide that all interested parties have 
reasonable opportunities to comment on the contents 
of the transportation plan. 
‘‘(C) METHODS.—In carrying out subparagraph (A), the 
metropolitan planning organization shall, to the maximum 
extent practicable— 
‘‘(i) hold any public meetings at convenient and 
accessible locations and times; 
‘‘(ii) employ visualization techniques to describe 
plans; and 
‘‘(iii) make public information available in elec-
tronically accessible format and means, such as the 
World Wide Web, as appropriate to afford reasonable 
opportunity for consideration of public information 
under subparagraph (A). 
‘‘(7) PUBLICATION.—A transportation plan involving Federal 
participation shall be published or otherwise made readily
H. R. 4348—233 
available by the metropolitan planning organization for public 
review, including (to the maximum extent practicable) in elec-
tronically accessible formats and means, such as the World 
Wide Web, approved by the metropolitan planning organization 
and submitted for information purposes to the Governor at 
such times and in such manner as the Secretary shall establish. 
‘‘(8) SELECTION OF PROJECTS FROM ILLUSTRATIVE LIST.— 
Notwithstanding paragraph (2)(C), a State or metropolitan 
planning organization shall not be required to select any project 
from the illustrative list of additional projects included in the 
financial plan under paragraph (2)(C). 
‘‘(j) METROPOLITAN TIP.— 
‘‘(1) DEVELOPMENT.— 
‘‘(A) IN GENERAL.—In cooperation with the State and 
any affected public transportation operator, the metropoli-
tan planning organization designated for a metropolitan 
area shall develop a TIP for the metropolitan planning 
area that— 
‘‘(i) contains projects consistent with the current 
metropolitan transportation plan; 
‘‘(ii) reflects the investment priorities established 
in the current metropolitan transportation plan; and 
‘‘(iii) once implemented, is designed to make 
progress toward achieving the performance targets 
established under subsection (h)(2). 
‘‘(B) OPPORTUNITY FOR COMMENT.—In developing the 
TIP, the metropolitan planning organization, in cooperation 
with the State and any affected public transportation oper-
ator, shall provide an opportunity for participation by 
interested parties in the development of the program, in 
accordance with subsection (i)(5). 
‘‘(C) FUNDING ESTIMATES.—For the purpose of devel-
oping the TIP, the metropolitan planning organization, 
public transportation agency, and State shall cooperatively 
develop estimates of funds that are reasonably expected 
to be available to support program implementation. 
‘‘(D) UPDATING
AND
APPROVAL.—The TIP shall be— 
‘‘(i) updated at least once every 4 years; and 
‘‘(ii) approved by the metropolitan planning 
organization and the Governor. 
‘‘(2) CONTENTS.— 
‘‘(A) PRIORITY LIST.—The TIP shall include a priority 
list of proposed Federally supported projects and strategies 
to be carried out within each 4-year period after the initial 
adoption of the TIP. 
‘‘(B) FINANCIAL PLAN.—The TIP shall include a finan-
cial plan that— 
‘‘(i) demonstrates how the TIP can be implemented; 
‘‘(ii) indicates resources from public and private 
sources that are reasonably expected to be available 
to carry out the program; 
‘‘(iii) identifies innovative financing techniques to 
finance projects, programs, and strategies; and 
‘‘(iv) may include, for illustrative purposes, addi-
tional projects that would be included in the approved 
TIP if reasonable additional resources beyond those 
identified in the financial plan were available.
H. R. 4348—234 
‘‘(C) DESCRIPTIONS.—Each project in the TIP shall 
include sufficient descriptive material (such as type of work, 
termini, length, and other similar factors) to identify the 
project or phase of the project. 
‘‘(D) 
PERFORMANCE
TARGET
ACHIEVEMENT.—The 
transportation improvement program shall include, to the 
maximum extent practicable, a description of the antici-
pated effect of the transportation improvement program 
toward achieving the performance targets established in 
the metropolitan transportation plan, linking investment 
priorities to those performance targets. 
‘‘(3) INCLUDED PROJECTS.— 
‘‘(A) PROJECTS UNDER THIS CHAPTER AND TITLE 23.— 
A TIP developed under this subsection for a metropolitan 
area shall include the projects within the area that are 
proposed for funding under this chapter and chapter 1 
of title 23. 
‘‘(B) PROJECTS UNDER CHAPTER 2 OF TITLE 23.— 
‘‘(i) REGIONALLY
SIGNIFICANT
PROJECTS.—Region-
ally significant projects proposed for funding under 
chapter 2 of title 23 shall be identified individually 
in the transportation improvement program. 
‘‘(ii) OTHER
PROJECTS.—Projects proposed for 
funding under chapter 2 of title 23 that are not deter-
mined to be regionally significant shall be grouped 
in 1 line item or identified individually in the transpor-
tation improvement program. 
‘‘(C) CONSISTENCY WITH LONG-RANGE TRANSPORTATION 
PLAN.—Each project shall be consistent with the long-range 
transportation plan developed under subsection (i) for the 
area. 
‘‘(D) REQUIREMENT OF ANTICIPATED FULL FUNDING.— 
The program shall include a project, or an identified phase 
of a project, only if full funding can reasonably be antici-
pated to be available for the project or the identified phase 
within the time period contemplated for completion of the 
project or the identified phase. 
‘‘(4) NOTICE AND COMMENT.—Before approving a TIP, a 
metropolitan planning organization, in cooperation with the 
State and any affected public transportation operator, shall 
provide an opportunity for participation by interested parties 
in the development of the program, in accordance with sub-
section (i)(5). 
‘‘(5) SELECTION OF PROJECTS.— 
‘‘(A) IN
GENERAL.—Except as otherwise provided in 
subsection (k)(4) and in addition to the TIP development 
required under paragraph (1), the selection of Federally 
funded projects in metropolitan areas shall be carried out, 
from the approved TIP— 
‘‘(i) by— 
‘‘(I) in the case of projects under title 23, the 
State; and 
‘‘(II) in the case of projects under this chapter, 
the designated recipients of public transportation 
funding; and 
‘‘(ii) in cooperation with the metropolitan planning 
organization.
H. R. 4348—235 
‘‘(B) MODIFICATIONS TO PROJECT PRIORITY.—Notwith-
standing any other provision of law, action by the Secretary 
shall not be required to advance a project included in 
the approved TIP in place of another project in the program. 
‘‘(6) SELECTION OF PROJECTS FROM ILLUSTRATIVE LIST.— 
‘‘(A) NO REQUIRED SELECTION.—Notwithstanding para-
graph (2)(B)(iv), a State or metropolitan planning organiza-
tion shall not be required to select any project from the 
illustrative list of additional projects included in the finan-
cial plan under paragraph (2)(B)(iv). 
‘‘(B) REQUIRED ACTION BY THE SECRETARY.—Action by 
the Secretary shall be required for a State or metropolitan 
planning organization to select any project from the illus-
trative list of additional projects included in the financial 
plan under paragraph (2)(B)(iv) for inclusion in an approved 
TIP. 
‘‘(7) PUBLICATION.— 
‘‘(A) PUBLICATION OF TIPS.—A TIP involving Federal 
participation shall be published or otherwise made readily 
available by the metropolitan planning organization for 
public review. 
‘‘(B) PUBLICATION OF ANNUAL LISTINGS OF PROJECTS.— 
‘‘(i) IN GENERAL.—An annual listing of projects, 
including investments in pedestrian walkways and 
bicycle transportation facilities, for which Federal 
funds have been obligated in the preceding year shall 
be published or otherwise made available by the 
cooperative effort of the State, transit operator, and 
metropolitan planning organization for public review. 
‘‘(ii) REQUIREMENT.—The listing shall be consistent 
with the categories identified in the TIP. 
‘‘(k) TRANSPORTATION MANAGEMENT AREAS.— 
‘‘(1) IDENTIFICATION AND DESIGNATION.— 
‘‘(A) REQUIRED IDENTIFICATION.—The Secretary shall 
identify as a transportation management area each urban-
ized area (as defined by the Bureau of the Census) with 
a population of over 200,000 individuals. 
‘‘(B) DESIGNATIONS ON REQUEST.—The Secretary shall 
designate any additional area as a transportation manage-
ment area on the request of the Governor and the metro-
politan planning organization designated for the area. 
‘‘(2) TRANSPORTATION PLANS.—In a transportation manage-
ment area, transportation plans shall be based on a continuing 
and comprehensive transportation planning process carried out 
by the metropolitan planning organization in cooperation with 
the State and public transportation operators. 
‘‘(3) CONGESTION MANAGEMENT PROCESS.— 
‘‘(A) IN
GENERAL.—Within a metropolitan planning 
area serving a transportation management area, the 
transportation planning process under this section shall 
address congestion management through a process that 
provides for effective management and operation, based 
on a cooperatively developed and implemented metropoli-
tan-wide strategy, of new and existing transportation facili-
ties eligible for funding under this chapter and title 23 
through the use of travel demand reduction and operational 
management strategies.
H. R. 4348—236 
‘‘(B) SCHEDULE.—The Secretary shall establish an 
appropriate phase-in schedule for compliance with the 
requirements of this section but no sooner than 1 year 
after the identification of a transportation management 
area. 
‘‘(4) SELECTION OF PROJECTS.— 
‘‘(A) IN GENERAL.—All Federally funded projects carried 
out within the boundaries of a metropolitan planning area 
serving a transportation management area under title 23 
(excluding projects carried out on the National Highway 
System) or under this chapter shall be selected for 
implementation from the approved TIP by the metropolitan 
planning organization designated for the area in consulta-
tion with the State and any affected public transportation 
operator. 
‘‘(B) NATIONAL HIGHWAY SYSTEM PROJECTS.—Projects 
carried out within the boundaries of a metropolitan plan-
ning area serving a transportation management area on 
the National Highway System shall be selected for 
implementation from the approved TIP by the State in 
cooperation with the metropolitan planning organization 
designated for the area. 
‘‘(5) CERTIFICATION.— 
‘‘(A) IN GENERAL.—The Secretary shall— 
‘‘(i) ensure that the metropolitan planning process 
of a metropolitan planning organization serving a 
transportation management area is being carried out 
in accordance with applicable provisions of Federal 
law; and 
‘‘(ii) subject to subparagraph (B), certify, not less 
often than once every 4 years, that the requirements 
of this paragraph are met with respect to the metropoli-
tan planning process. 
‘‘(B) REQUIREMENTS
FOR
CERTIFICATION.—The Sec-
retary may make the certification under subparagraph (A) 
if— 
‘‘(i) the transportation planning process complies 
with the requirements of this section and other 
applicable requirements of Federal law; and 
‘‘(ii) there is a TIP for the metropolitan planning 
area that has been approved by the metropolitan plan-
ning organization and the Governor. 
‘‘(C) EFFECT OF FAILURE TO CERTIFY.— 
‘‘(i) WITHHOLDING OF PROJECT FUNDS.—If a metro-
politan planning process of a metropolitan planning 
organization serving a transportation management 
area is not certified, the Secretary may withhold up 
to 20 percent of the funds attributable to the metropoli-
tan planning area of the metropolitan planning 
organization for projects funded under this chapter 
and title 23. 
‘‘(ii) RESTORATION OF WITHHELD FUNDS.—The with-
held funds shall be restored to the metropolitan plan-
ning area at such time as the metropolitan planning 
process is certified by the Secretary. 
‘‘(D) REVIEW
OF
CERTIFICATION.—In making certifi-
cation determinations under this paragraph, the Secretary
H. R. 4348—237 
shall provide for public involvement appropriate to the 
metropolitan area under review. 
‘‘(l) REPORT ON PERFORMANCE-BASED PLANNING PROCESSES.— 
‘‘(1) IN GENERAL.—The Secretary shall submit to Congress 
a report on the effectiveness of the performance-based planning 
processes of metropolitan planning organizations under this 
section, taking into consideration the requirements of this sub-
section 
‘‘(2) REPORT.—Not later than 5 years after the date of 
enactment of the Federal Public Transportation Act of 2012, 
the Secretary shall submit to Congress a report evaluating— 
‘‘(A) the overall effectiveness of performance-based 
planning as a tool for guiding transportation investments; 
‘‘(B) the effectiveness of the performance-based plan-
ning process of each metropolitan planning organization 
under this section; 
‘‘(C) the extent to which metropolitan planning 
organizations have achieved, or are currently making 
substantial progress toward achieving, the performance tar-
gets specified under this section and whether metropolitan 
planning organizations are developing meaningful perform-
ance targets; and 
‘‘(D) the technical capacity of metropolitan planning 
organizations that operate within a metropolitan planning 
area of less than 200,000 and their ability to carry out 
the requirements of this section. 
‘‘(3) PUBLICATION.—The report under paragraph (2) shall 
be published or otherwise made available in electronically acces-
sible formats and means, including on the Internet. 
‘‘(m) ABBREVIATED PLANS FOR CERTAIN AREAS.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), in the case 
of a metropolitan area not designated as a transportation 
management area under this section, the Secretary may provide 
for the development of an abbreviated transportation plan and 
TIP for the metropolitan planning area that the Secretary 
determines is appropriate to achieve the purposes of this sec-
tion, taking into account the complexity of transportation prob-
lems in the area. 
‘‘(2) NONATTAINMENT
AREAS.—The Secretary may not 
permit abbreviated plans or TIPs for a metropolitan area that 
is in nonattainment for ozone or carbon monoxide under the 
Clean Air Act (42 U.S.C. 7401 et seq.). 
‘‘(n) ADDITIONAL REQUIREMENTS FOR CERTAIN NONATTAINMENT 
AREAS.— 
‘‘(1) IN GENERAL.—Notwithstanding any other provisions 
of this chapter or title 23, for transportation management areas 
classified as nonattainment for ozone or carbon monoxide pursu-
ant to the Clean Air Act (42 U.S.C. 7401 et seq.), Federal 
funds may not be advanced in such area for any highway 
project that will result in a significant increase in the carrying 
capacity for single-occupant vehicles unless the project is 
addressed through a congestion management process. 
‘‘(2) APPLICABILITY.—This subsection applies to a nonattain-
ment area within the metropolitan planning area boundaries 
determined under subsection (e). 
‘‘(o) LIMITATION ON STATUTORY CONSTRUCTION.—Nothing in this 
section shall be construed to confer on a metropolitan planning
H. R. 4348—238 
organization the authority to impose legal requirements on any 
transportation facility, provider, or project not eligible under this 
chapter or title 23. 
‘‘(p) FUNDING.—Funds set aside under section 104(f) of title 
23 or section 5305(g) shall be available to carry out this section. 
‘‘(q) CONTINUATION
OF
CURRENT
REVIEW
PRACTICE.—Since 
plans and TIPs described in this section are subject to a reasonable 
opportunity for public comment, since individual projects included 
in plans and TIPs are subject to review under the National Environ-
mental Policy Act of 1969 (42 U.S.C. 4321 et seq.), and since 
decisions by the Secretary concerning plans and TIPs described 
in this section have not been reviewed under that Act as of January 
1, 1997, any decision by the Secretary concerning a plan or TIP 
described in this section shall not be considered to be a Federal 
action subject to review under that Act.’’. 
(b) PILOT
PROGRAM
FOR
TRANSIT-ORIENTED
DEVELOPMENT 
PLANNING.— 
(1) DEFINITIONS.—In this subsection the following defini-
tions shall apply: 
(A) ELIGIBLE
PROJECT.—The term ‘‘eligible project’’ 
means a new fixed guideway capital project or a core 
capacity improvement project, as those terms are defined 
in section 5309 of title 49, United States Code, as amended 
by this division. 
(B) SECRETARY.—The term ‘‘Secretary’’ means the Sec-
retary of Transportation. 
(2) GENERAL AUTHORITY.—The Secretary may make grants 
under this subsection to a State or local governmental authority 
to assist in financing comprehensive planning associated with 
an eligible project that seeks to— 
(A) enhance economic development, ridership, and 
other goals established during the project development and 
engineering processes; 
(B) facilitate multimodal connectivity and accessibility; 
(C) increase access to transit hubs for pedestrian and 
bicycle traffic; 
(D) enable mixed-use development; 
(E) identify infrastructure needs associated with the 
eligible project; and 
(F) include private sector participation. 
(3) ELIGIBILITY.—A State or local governmental authority 
that desires to participate in the program under this subsection 
shall submit to the Secretary an application that contains, 
at a minimum— 
(A) identification of an eligible project; 
(B) a schedule and process for the development of 
a comprehensive plan; 
(C) a description of how the eligible project and the 
proposed comprehensive plan advance the metropolitan 
transportation plan of the metropolitan planning organiza-
tion; 
(D) proposed performance criteria for the development 
and implementation of the comprehensive plan; and 
(E) identification of— 
(i) partners; 
(ii) availability of and authority for funding; and
H. R. 4348—239 
(iii) potential State, local or other impediments 
to the implementation of the comprehensive plan. 
SEC. 20006. STATEWIDE AND NONMETROPOLITAN TRANSPORTATION 
PLANNING. 
Section 5304 of title 49, United States Code, is amended to 
read as follows: 
‘‘§ 5304. Statewide and nonmetropolitan transportation plan-
ning 
‘‘(a) GENERAL REQUIREMENTS.— 
‘‘(1) DEVELOPMENT OF PLANS AND PROGRAMS.—Subject to 
section 5303, to accomplish the objectives stated in section 
5303(a), each State shall develop a statewide transportation 
plan and a statewide transportation improvement program for 
all areas of the State. 
‘‘(2) CONTENTS.—The statewide transportation plan and the 
transportation improvement program developed for each State 
shall provide for the development and integrated management 
and operation of transportation systems and facilities (including 
accessible pedestrian walkways and bicycle transportation 
facilities) that will function as an intermodal transportation 
system for the State and an integral part of an intermodal 
transportation system for the United States. 
‘‘(3) PROCESS OF DEVELOPMENT.—The process for developing 
the statewide plan and the transportation improvement pro-
gram shall provide for consideration of all modes of transpor-
tation and the policies stated in section 5303(a) and shall 
be continuing, cooperative, and comprehensive to the degree 
appropriate, based on the complexity of the transportation prob-
lems to be addressed. 
‘‘(b) COORDINATION WITH METROPOLITAN PLANNING; STATE 
IMPLEMENTATION PLAN.—A State shall— 
‘‘(1) coordinate planning carried out under this section with 
the transportation planning activities carried out under section 
5303 for metropolitan areas of the State and with statewide 
trade and economic development planning activities and related 
multistate planning efforts; and 
‘‘(2) develop the transportation portion of the State 
implementation plan as required by the Clean Air Act (42 
U.S.C. 7401 et seq.). 
‘‘(c) INTERSTATE AGREEMENTS.— 
‘‘(1) IN
GENERAL.—Two or more States may enter into 
agreements or compacts, not in conflict with any law of the 
United States, for cooperative efforts and mutual assistance 
in support of activities authorized under this section related 
to interstate areas and localities in the States and establishing 
authorities the States consider desirable for making the agree-
ments and compacts effective. 
‘‘(2) RESERVATION OF RIGHTS.—The right to alter, amend, 
or repeal interstate compacts entered into under this subsection 
is expressly reserved. 
‘‘(d) SCOPE OF PLANNING PROCESS.— 
‘‘(1) IN GENERAL.—Each State shall carry out a statewide 
transportation planning process that provides for consideration 
and implementation of projects, strategies, and services that 
will—
H. R. 4348—240 
‘‘(A) support the economic vitality of the United States, 
the States, nonmetropolitan areas, and metropolitan areas, 
especially by enabling global competitiveness, productivity, 
and efficiency; 
‘‘(B) increase the safety of the transportation system 
for motorized and nonmotorized users; 
‘‘(C) increase the security of the transportation system 
for motorized and nonmotorized users; 
‘‘(D) increase the accessibility and mobility of people 
and freight; 
‘‘(E) protect and enhance the environment, promote 
energy conservation, improve the quality of life, and pro-
mote consistency between transportation improvements 
and State and local planned growth and economic develop-
ment patterns; 
‘‘(F) enhance the integration and connectivity of the 
transportation system, across and between modes through-
out the State, for people and freight; 
‘‘(G) promote efficient system management and oper-
ation; and 
‘‘(H) emphasize the preservation of the existing 
transportation system. 
‘‘(2) PERFORMANCE-BASED APPROACH.— 
‘‘(A) IN GENERAL.—The statewide transportation plan-
ning process shall provide for the establishment and use 
of a performance-based approach to transportation decision-
making to support the national goals described in section 
150(b) of title 23 and the general purposes described in 
section 5301. 
‘‘(B) PERFORMANCE TARGETS.— 
‘‘(i) SURFACE TRANSPORTATION PERFORMANCE TAR-
GETS.— 
‘‘(I) IN GENERAL.—Each State shall establish 
performance targets that address the performance 
measures described in section 150(c) of title 23, 
where applicable, to use in tracking progress 
towards attainment of critical outcomes for the 
State. 
‘‘(II) COORDINATION.—Selection of performance 
targets by a State shall be coordinated with the 
relevant metropolitan planning organizations to 
ensure consistency, to the maximum extent prac-
ticable. 
‘‘(ii) PUBLIC TRANSPORTATION PERFORMANCE TAR-
GETS.—In urbanized areas with a population of fewer 
than 200,000 individuals, as calculated according to 
the most recent decennial census, and not represented 
by a metropolitan planning organization, selection of 
performance targets by a State shall be coordinated, 
to the maximum extent practicable, with providers of 
public transportation to ensure consistency with sec-
tions 5326(c) and 5329(d). 
‘‘(C) INTEGRATION
OF
OTHER
PERFORMANCE-BASED 
PLANS.—A State shall integrate into the statewide transpor-
tation planning process, directly or by reference, the goals, 
objectives, performance measures, and targets described 
in this paragraph, in other State transportation plans and
H. R. 4348—241 
transportation processes, as well as any plans developed 
pursuant to title 23 by providers of public transportation 
in urbanized areas with a population of fewer than 200,000 
individuals, as calculated according to the most recent 
decennial census, and not represented by a metropolitan 
planning organization, required as part of a performance- 
based program. 
‘‘(D) USE OF PERFORMANCE MEASURES AND TARGETS.— 
The performance measures and targets established under 
this paragraph shall be considered by a State when devel-
oping policies, programs, and investment priorities reflected 
in the statewide transportation plan and statewide 
transportation improvement program. 
‘‘(3) FAILURE TO CONSIDER FACTORS.—The failure to take 
into consideration the factors specified in paragraphs (1) and 
(2) shall not be subject to review by any court under this 
chapter, title 23, subchapter II of chapter 5 of title 5, or chapter 
7 of title 5 in any matter affecting a statewide transportation 
plan, a statewide transportation improvement program, a 
project or strategy, or the certification of a planning process. 
‘‘(e) ADDITIONAL REQUIREMENTS.—‘‘In carrying out planning 
under this section, each State shall, at a minimum— 
‘‘(1) with respect to nonmetropolitan areas, cooperate with 
affected local officials with responsibility for transportation or, 
if 
applicable, 
through 
regional 
transportation 
planning 
organizations described in subsection (l); 
‘‘(2) consider the concerns of Indian tribal governments 
and Federal land management agencies that have jurisdiction 
over land within the boundaries of the State; and 
‘‘(3) consider coordination of transportation plans, the 
transportation improvement program, and planning activities 
with related planning activities being carried out outside of 
metropolitan planning areas and between States. 
‘‘(f) LONG-RANGE STATEWIDE TRANSPORTATION PLAN.— 
‘‘(1) DEVELOPMENT.—Each State shall develop a long-range 
statewide transportation plan, with a minimum 20-year forecast 
period for all areas of the State, that provides for the develop-
ment and implementation of the intermodal transportation 
system of the State. 
‘‘(2) CONSULTATION WITH GOVERNMENTS.— 
‘‘(A) METROPOLITAN AREAS.—The statewide transpor-
tation plan shall be developed for each metropolitan area 
in the State in cooperation with the metropolitan planning 
organization designated for the metropolitan area under 
section 5303. 
‘‘(B) NONMETROPOLITAN AREAS.— 
‘‘(i) IN GENERAL.—With respect to nonmetropolitan 
areas, the statewide transportation plan shall be devel-
oped in cooperation with affected nonmetropolitan offi-
cials with responsibility for transportation or, if 
applicable, through regional transportation planning 
organizations described in subsection (l). 
‘‘(ii) ROLE OF SECRETARY.—The Secretary shall not 
review or approve the consultation process in each 
State. 
‘‘(C) INDIAN TRIBAL AREAS.—With respect to each area 
of the State under the jurisdiction of an Indian tribal
H. R. 4348—242 
government, the statewide transportation plan shall be 
developed in consultation with the tribal government and 
the Secretary of the Interior. 
‘‘(D) CONSULTATION, 
COMPARISON, 
AND
CONSIDER-
ATION.— 
‘‘(i) IN GENERAL.—The long-range transportation 
plan shall be developed, as appropriate, in consultation 
with State, tribal, and local agencies responsible for 
land use management, natural resources, environ-
mental protection, conservation, and historic preserva-
tion. 
‘‘(ii) COMPARISON AND CONSIDERATION.—Consulta-
tion under clause (i) shall involve comparison of 
transportation plans to State and tribal conservation 
plans or maps, if available, and comparison of transpor-
tation plans to inventories of natural or historic 
resources, if available. 
‘‘(3) PARTICIPATION BY INTERESTED PARTIES.— 
‘‘(A) 
IN
GENERAL.—In 
developing 
the 
statewide 
transportation plan, the State shall provide to— 
‘‘(i) nonmetropolitan local elected officials, or, if 
applicable, through regional transportation planning 
organizations described in subsection (l), an oppor-
tunity to participate in accordance with subparagraph 
(B)(i); and 
‘‘(ii) citizens, affected public agencies, representa-
tives of public transportation employees, freight ship-
pers, private providers of transportation, representa-
tives of users of public transportation, representatives 
of users of pedestrian walkways and bicycle transpor-
tation facilities, representatives of the disabled, pro-
viders of freight transportation services, and other 
interested parties a reasonable opportunity to comment 
on the proposed plan. 
‘‘(B) METHODS.—In carrying out subparagraph (A), the 
State shall, to the maximum extent practicable— 
‘‘(i) develop and document a consultative process 
to carry out subparagraph (A)(i) that is separate and 
discrete from the public involvement process developed 
under clause (ii); 
‘‘(ii) hold any public meetings at convenient and 
accessible locations and times; 
‘‘(iii) employ visualization techniques to describe 
plans; and 
‘‘(iv) make public information available in elec-
tronically accessible format and means, such as the 
World Wide Web, as appropriate to afford reasonable 
opportunity for consideration of public information 
under subparagraph (A). 
‘‘(4) MITIGATION ACTIVITIES.— 
‘‘(A) IN GENERAL.—A long-range transportation plan 
shall include a discussion of potential environmental miti-
gation activities and potential areas to carry out these 
activities, including activities that may have the greatest 
potential to restore and maintain the environmental func-
tions affected by the plan.
H. R. 4348—243 
‘‘(B) CONSULTATION.—The discussion shall be devel-
oped in consultation with Federal, State, and tribal wildlife, 
land management, and regulatory agencies. 
‘‘(5) FINANCIAL PLAN.—The statewide transportation plan 
may include— 
‘‘(A) a financial plan that— 
‘‘(i) demonstrates how the adopted statewide 
transportation plan can be implemented; 
‘‘(ii) indicates resources from public and private 
sources that are reasonably expected to be made avail-
able to carry out the plan; and 
‘‘(iii) recommends any additional financing strate-
gies for needed projects and programs; and 
‘‘(B) for illustrative purposes, additional projects that 
would be included in the adopted statewide transportation 
plan if reasonable additional resources beyond those identi-
fied in the financial plan were available. 
‘‘(6) SELECTION OF PROJECTS FROM ILLUSTRATIVE LIST.— 
A State shall not be required to select any project from the 
illustrative list of additional projects included in the financial 
plan described in paragraph (5). 
‘‘(7) 
PERFORMANCE-BASED
APPROACH.—The 
statewide 
transportation plan should include— 
‘‘(A) a description of the performance measures and 
performance targets used in assessing the performance of 
the transportation system in accordance with subsection 
(d)(2); and 
‘‘(B) a system performance report and subsequent 
updates evaluating the condition and performance of the 
transportation system with respect to the performance tar-
gets described in subsection (d)(2), including progress 
achieved by the metropolitan planning organization in 
meeting the performance targets in comparison with system 
performance recorded in previous reports; 
‘‘(8) EXISTING SYSTEM.—The statewide transportation plan 
should include capital, operations and management strategies, 
investments, procedures, and other measures to ensure the 
preservation and most efficient use of the existing transpor-
tation system. 
‘‘(9) 
PUBLICATION
OF
LONG-RANGE
TRANSPORTATION 
PLANS.—Each long-range transportation plan prepared by a 
State shall be published or otherwise made available, including 
(to the maximum extent practicable) in electronically accessible 
formats and means, such as the World Wide Web. 
‘‘(g) STATEWIDE TRANSPORTATION IMPROVEMENT PROGRAM.— 
‘‘(1) DEVELOPMENT.— 
‘‘(A) IN GENERAL.—Each State shall develop a statewide 
transportation improvement program for all areas of the 
State. 
‘‘(B) DURATION AND UPDATING OF PROGRAM.—Each pro-
gram developed under subparagraph (A) shall cover a 
period of 4 years and shall be updated every 4 years 
or more frequently if the Governor of the State elects 
to update more frequently. 
‘‘(2) CONSULTATION WITH GOVERNMENTS.—
H. R. 4348—244 
‘‘(A) METROPOLITAN
AREAS.—With respect to each 
metropolitan area in the State, the program shall be devel-
oped in cooperation with the metropolitan planning 
organization designated for the metropolitan area under 
section 5303. 
‘‘(B) NONMETROPOLITAN AREAS.— 
‘‘(i) IN GENERAL.—With respect to each nonmetro-
politan area in the State, the program shall be devel-
oped in cooperation with affected nonmetropolitan local 
officials with responsibility for transportation or, if 
applicable, through regional transportation planning 
organizations described in subsection (l). 
‘‘(ii) ROLE OF SECRETARY.—The Secretary shall not 
review or approve the specific consultation process in 
the State. 
‘‘(C) INDIAN TRIBAL AREAS.—With respect to each area 
of the State under the jurisdiction of an Indian tribal 
government, the program shall be developed in consultation 
with the tribal government and the Secretary of the 
Interior. 
‘‘(3) PARTICIPATION BY INTERESTED PARTIES.—In developing 
the program, the State shall provide citizens, affected public 
agencies, representatives of public transportation employees, 
freight shippers, private providers of transportation, providers 
of freight transportation services, representatives of users of 
public transportation, representatives of users of pedestrian 
walkways and bicycle transportation facilities, representatives 
of the disabled, and other interested parties with a reasonable 
opportunity to comment on the proposed program. 
‘‘(4) PERFORMANCE
TARGET
ACHIEVEMENT.—A statewide 
transportation improvement program shall include, to the max-
imum extent practicable, a discussion of the anticipated effect 
of the statewide transportation improvement program toward 
achieving the performance targets established in the statewide 
transportation plan, linking investment priorities to those 
performance targets. 
‘‘(5) INCLUDED PROJECTS.— 
‘‘(A) IN GENERAL.—A transportation improvement pro-
gram developed under this subsection for a State shall 
include 
Federally 
supported 
surface 
transportation 
expenditures within the boundaries of the State. 
‘‘(B) LISTING OF PROJECTS.— 
‘‘(i) IN GENERAL.—An annual listing of projects for 
which funds have been obligated for the preceding 
year in each metropolitan planning area shall be pub-
lished or otherwise made available by the cooperative 
effort of the State, transit operator, and the metropoli-
tan planning organization for public review. 
‘‘(ii) FUNDING CATEGORIES.—The listing described 
in clause (i) shall be consistent with the funding cat-
egories identified in each metropolitan transportation 
improvement program. 
‘‘(C) PROJECTS UNDER CHAPTER 2.— 
‘‘(i) REGIONALLY
SIGNIFICANT
PROJECTS.—Region-
ally significant projects proposed for funding under 
chapter 2 of title 23 shall be identified individually 
in the transportation improvement program.
H. R. 4348—245 
‘‘(ii) OTHER
PROJECTS.—Projects proposed for 
funding under chapter 2 of title 23 that are not deter-
mined to be regionally significant shall be grouped 
in 1 line item or identified individually in the transpor-
tation improvement program. 
‘‘(D) CONSISTENCY
WITH
STATEWIDE
TRANSPORTATION 
PLAN.—Each project shall be— 
‘‘(i) consistent with the statewide transportation 
plan developed under this section for the State; 
‘‘(ii) identical to the project or phase of the project 
as described in an approved metropolitan transpor-
tation plan; and 
‘‘(iii) in conformance with the applicable State air 
quality implementation plan developed under the 
Clean Air Act (42 U.S.C. 7401 et seq.), if the project 
is carried out in an area designated as a nonattainment 
area for ozone, particulate matter, or carbon monoxide 
under part D of title I of that Act (42 U.S.C. 7501 
et seq.). 
‘‘(E) REQUIREMENT OF ANTICIPATED FULL FUNDING.— 
The transportation improvement program shall include a 
project, or an identified phase of a project, only if full 
funding can reasonably be anticipated to be available for 
the project within the time period contemplated for comple-
tion of the project. 
‘‘(F) FINANCIAL PLAN.— 
‘‘(i) IN GENERAL.—The transportation improvement 
program may include a financial plan that dem-
onstrates how the approved transportation improve-
ment program can be implemented, indicates resources 
from public and private sources that are reasonably 
expected to be made available to carry out the transpor-
tation improvement program, and recommends any 
additional financing strategies for needed projects and 
programs. 
‘‘(ii) ADDITIONAL
PROJECTS.—The financial plan 
may include, for illustrative purposes, additional 
projects that would be included in the adopted 
transportation plan if reasonable additional resources 
beyond those identified in the financial plan were avail-
able. 
‘‘(G) SELECTION
OF
PROJECTS
FROM
ILLUSTRATIVE 
LIST.— 
‘‘(i) NO
REQUIRED
SELECTION.—Notwithstanding 
subparagraph (F), a State shall not be required to 
select any project from the illustrative list of additional 
projects included in the financial plan under subpara-
graph (F). 
‘‘(ii) REQUIRED ACTION BY THE SECRETARY.—Action 
by the Secretary shall be required for a State to select 
any project from the illustrative list of additional 
projects included in the financial plan under subpara-
graph (F) for inclusion in an approved transportation 
improvement program. 
‘‘(H) PRIORITIES.—The transportation improvement 
program shall reflect the priorities for programming and
H. R. 4348—246 
expenditures of funds, including transportation enhance-
ment activities, required by this chapter and title 23. 
‘‘(6) PROJECT SELECTION FOR AREAS OF LESS THAN 50,000 
POPULATION.— 
‘‘(A) IN GENERAL.—Projects carried out in areas with 
populations of less than 50,000 individuals shall be 
selected, from the approved transportation improvement 
program (excluding projects carried out on the National 
Highway System and projects carried out under the bridge 
program or the Interstate maintenance program under title 
23 or under sections 5310 and 5311 of this chapter), by 
the State in cooperation with the affected nonmetropolitan 
local officials with responsibility for transportation or, if 
applicable, 
through 
regional 
transportation 
planning 
organizations described in subsection (l). 
‘‘(B) OTHER PROJECTS.—Projects carried out in areas 
with populations of less than 50,000 individuals on the 
National Highway System or under the bridge program 
or the Interstate maintenance program under title 23 or 
under sections 5310 and 5311 of this chapter shall be 
selected, from the approved statewide transportation 
improvement program, by the State in consultation with 
the affected nonmetropolitan local officials with responsi-
bility for transportation. 
‘‘(7) TRANSPORTATION IMPROVEMENT PROGRAM APPROVAL.— 
Every 4 years, a transportation improvement program devel-
oped under this subsection shall be reviewed and approved 
by the Secretary if based on a current planning finding. 
‘‘(8) PLANNING FINDING.—A finding shall be made by the 
Secretary at least every 4 years that the transportation plan-
ning process through which statewide transportation plans and 
programs are developed is consistent with this section and 
section 5303. 
‘‘(9) 
MODIFICATIONS
TO
PROJECT
PRIORITY.—Notwith-
standing any other provision of law, action by the Secretary 
shall not be required to advance a project included in the 
approved transportation improvement program in place of 
another project in the program. 
‘‘(h) PERFORMANCE-BASED PLANNING PROCESSES EVALUATION.— 
‘‘(1) IN GENERAL.—The Secretary shall establish criteria 
to evaluate the effectiveness of the performance-based planning 
processes of States, taking into consideration the following: 
‘‘(A) The extent to which the State is making progress 
toward achieving, the performance targets described in sub-
section (d)(2), taking into account whether the State devel-
oped appropriate performance targets. 
‘‘(B) The extent to which the State has made transpor-
tation investments that are efficient and cost-effective. 
‘‘(C) The extent to which the State— 
‘‘(i) has developed an investment process that relies 
on public input and awareness to ensure that invest-
ments are transparent and accountable; and 
‘‘(ii) provides reports allowing the public to access 
the information being collected in a format that allows 
the public to meaningfully assess the performance of 
the State. 
‘‘(2) REPORT.—
H. R. 4348—247 
‘‘(A) IN GENERAL.—Not later than 5 years after the 
date of enactment of the Federal Public Transportation 
Act of 2012, the Secretary shall submit to Congress a 
report evaluating— 
‘‘(i) the overall effectiveness of performance-based 
planning as a tool for guiding transportation invest-
ments; and 
‘‘(ii) the effectiveness of the performance-based 
planning process of each State. 
‘‘(B) PUBLICATION.—The report under subparagraph (A) 
shall be published or otherwise made available in electroni-
cally accessible formats and means, including on the Inter-
net. 
‘‘(i) TREATMENT
OF CERTAIN STATE LAWS
AS CONGESTION 
MANAGEMENT PROCESSES.—For purposes of this section and section 
5303, and sections 134 and 135 of title 23, State laws, rules, 
or regulations pertaining to congestion management systems or 
programs may constitute the congestion management process under 
this this section and section 5303, and sections 134 and 135 of 
title 23, if the Secretary finds that the State laws, rules, or regula-
tions are consistent with, and fulfill the intent of, the purposes 
of this section and section 5303, and sections 134 and 135 of 
title 23, as appropriate. 
‘‘(j) CONTINUATION OF CURRENT REVIEW PRACTICE.—Since the 
statewide transportation plan and the transportation improvement 
program described in this section are subject to a reasonable oppor-
tunity for public comment, since individual projects included in 
the statewide transportation plans and the transportation improve-
ment program are subject to review under the National Environ-
mental Policy Act of 1969 (42 U.S.C. 4321 et seq.), and since 
decisions by the Secretary concerning statewide transportation 
plans or the transportation improvement program described in this 
section have not been reviewed under that Act as of January 1, 
1997, any decision by the Secretary concerning a metropolitan or 
statewide transportation plan or the transportation improvement 
program described in this section shall not be considered to be 
a Federal action subject to review under the National Environ-
mental Policy Act of 1969 (42 U.S.C. 4321 et seq.). 
‘‘(k) SCHEDULE
FOR IMPLEMENTATION.—The Secretary shall 
issue guidance on a schedule for implementation of the changes 
made by this section, taking into consideration the established 
planning update cycle for States. The Secretary shall not require 
a State to deviate from its established planning update cycle to 
implement changes made by this section. States shall reflect 
changes made to their transportation plan or transportation 
improvement program updates not later than 2 years after the 
date of issuance of guidance by the Secretary under this subsection. 
‘‘(l) DESIGNATION
OF REGIONAL TRANSPORTATION PLANNING 
ORGANIZATIONS.— 
‘‘(1) IN GENERAL.—To carry out the transportation planning 
process required by this section, a State may establish and 
designate regional transportation planning organizations to 
enhance the planning, coordination, and implementation of 
statewide strategic long-range transportation plans and 
transportation improvement programs, with an emphasis on 
addressing the needs of nonmetropolitan areas of the State.
H. R. 4348—248 
‘‘(2) STRUCTURE.—A regional transportation planning 
organization shall be established as a multijurisdictional 
organization of nonmetropolitan local officials or their designees 
who volunteer for such organization and representatives of 
local transportation systems who volunteer for such organiza-
tion. 
‘‘(3) REQUIREMENTS.—A regional transportation planning 
organization shall establish, at a minimum— 
‘‘(A) a policy committee, the majority of which shall 
consist of nonmetropolitan local officials, or their designees, 
and, as appropriate, additional representatives from the 
State, private business, transportation service providers, 
economic development practitioners, and the public in the 
region; and 
‘‘(B) a fiscal and administrative agent, such as an 
existing regional planning and development organization, 
to 
provide 
professional 
planning, 
management, 
and 
administrative support. 
‘‘(4) DUTIES.—The duties of a regional transportation plan-
ning organization shall include— 
‘‘(A) developing and maintaining, in cooperation with 
the State, regional long-range multimodal transportation 
plans; 
‘‘(B) developing a regional transportation improvement 
program for consideration by the State; 
‘‘(C) fostering the coordination of local planning, land 
use, and economic development plans with State, regional, 
and local transportation plans and programs; 
‘‘(D) providing technical assistance to local officials; 
‘‘(E) participating in national, multistate, and State 
policy and planning development processes to ensure the 
regional and local input of nonmetropolitan areas; 
‘‘(F) providing a forum for public participation in the 
statewide and regional transportation planning processes; 
‘‘(G) considering and sharing plans and programs with 
neighboring regional transportation planning organiza-
tions, metropolitan planning organizations, and, where 
appropriate, tribal organizations; and 
‘‘(H) conducting other duties, as necessary, to support 
and enhance the statewide planning process under sub-
section (d). 
‘‘(5) STATES WITHOUT REGIONAL TRANSPORTATION PLANNING 
ORGANIZATIONS.—If a State chooses not to establish or designate 
a regional transportation planning organization, the State shall 
consult with affected nonmetropolitan local officials to deter-
mine projects that may be of regional significance.’’. 
SEC. 20007. URBANIZED AREA FORMULA GRANTS. 
Section 5307 of title 49, United States Code, is amended to 
read as follows: 
‘‘§ 5307. Urbanized area formula grants 
‘‘(a) GENERAL AUTHORITY.— 
‘‘(1) GRANTS.—The Secretary may make grants under this 
section for— 
‘‘(A) capital projects; 
‘‘(B) planning;
H. R. 4348—249 
‘‘(C) job access and reverse commute projects; and 
‘‘(D) operating costs of equipment and facilities for 
use in public transportation in an urbanized area with 
a population of fewer than 200,000 individuals, as deter-
mined by the Bureau of the Census. 
‘‘(2) SPECIAL RULE.—The Secretary may make grants under 
this section to finance the operating cost of equipment and 
facilities for use in public transportation, excluding rail fixed 
guideway, in an urbanized area with a population of not fewer 
than 200,000 individuals, as determined by the Bureau of the 
Census— 
‘‘(A) for public transportation systems that operate 75 
or fewer buses in fixed route service during peak service 
hours, in an amount not to exceed 75 percent of the share 
of the apportionment which is attributable to such systems 
within the urbanized area, as measured by vehicle revenue 
hours; and 
‘‘(B) for public transportation systems that operate a 
minimum of 76 buses and a maximum of 100 buses in 
fixed route service during peak service hours, in an amount 
not to exceed 50 percent of the share of the apportionment 
which is attributable to such systems within the urbanized 
area, as measured by vehicle revenue hours. 
‘‘(b) PROGRAM OF PROJECTS.—Each recipient of a grant shall— 
‘‘(1) make available to the public information on amounts 
available to the recipient under this section; 
‘‘(2) develop, in consultation with interested parties, 
including private transportation providers, a proposed program 
of projects for activities to be financed; 
‘‘(3) publish a proposed program of projects in a way that 
affected individuals, private transportation providers, and local 
elected officials have the opportunity to examine the proposed 
program and submit comments on the proposed program and 
the performance of the recipient; 
‘‘(4) provide an opportunity for a public hearing in which 
to obtain the views of individuals on the proposed program 
of projects; 
‘‘(5) ensure that the proposed program of projects provides 
for the coordination of public transportation services assisted 
under section 5336 of this title with transportation services 
assisted from other United States Government sources; 
‘‘(6) consider comments and views received, especially those 
of private transportation providers, in preparing the final pro-
gram of projects; and 
‘‘(7) make the final program of projects available to the 
public. 
‘‘(c) GRANT RECIPIENT REQUIREMENTS.—A recipient may receive 
a grant in a fiscal year only if— 
‘‘(1) the recipient, within the time the Secretary prescribes, 
submits a final program of projects prepared under subsection 
(b) of this section and a certification for that fiscal year that 
the recipient (including a person receiving amounts from a 
Governor under this section)— 
‘‘(A) has or will have the legal, financial, and technical 
capacity to carry out the program, including safety and 
security aspects of the program;
H. R. 4348—250 
‘‘(B) has or will have satisfactory continuing control 
over the use of equipment and facilities; 
‘‘(C) will maintain equipment and facilities; 
‘‘(D) will ensure that, during non-peak hours for 
transportation using or involving a facility or equipment 
of a project financed under this section, a fare that is 
not more than 50 percent of the peak hour fare will be 
charged for any— 
‘‘(i) senior; 
‘‘(ii) individual who, because of illness, injury, age, 
congenital malfunction, or other incapacity or tem-
porary or permanent disability (including an individual 
who is a wheelchair user or has semiambulatory capa-
bility), cannot use a public transportation service or 
a public transportation facility effectively without spe-
cial facilities, planning, or design; and 
‘‘(iii) individual presenting a Medicare card issued 
to that individual under title II or XVIII of the Social 
Security Act (42 U.S.C. 401 et seq. and 1395 et seq.); 
‘‘(E) in carrying out a procurement under this section, 
will comply with sections 5323 and 5325; 
‘‘(F) has complied with subsection (b) of this section; 
‘‘(G) has available and will provide the required 
amounts as provided by subsection (d) of this section; 
‘‘(H) will comply with sections 5303 and 5304; 
‘‘(I) has a locally developed process to solicit and con-
sider public comment before raising a fare or carrying 
out a major reduction of transportation; 
‘‘(J)(i) will expend for each fiscal year for public 
transportation 
security 
projects, 
including 
increased 
lighting in or adjacent to a public transportation system 
(including bus stops, subway stations, parking lots, and 
garages), increased camera surveillance of an area in or 
adjacent to that system, providing an emergency telephone 
line to contact law enforcement or security personnel in 
an area in or adjacent to that system, and any other 
project intended to increase the security and safety of an 
existing or planned public transportation system, at least 
1 percent of the amount the recipient receives for each 
fiscal year under section 5336 of this title; or 
‘‘(ii) has decided that the expenditure for security 
projects is not necessary; 
‘‘(K) in the case of a recipient for an urbanized area 
with a population of not fewer than 200,000 individuals, 
as determined by the Bureau of the Census— 
‘‘(i) will expend not less than 1 percent of the 
amount the recipient receives each fiscal year under 
this section for associated transit improvements, as 
defined in section 5302; and 
‘‘(ii) will submit an annual report listing projects 
carried out in the preceding fiscal year with those 
funds; and 
‘‘(L) will comply with section 5329(d); and 
‘‘(2) the Secretary accepts the certification. 
‘‘(d) GOVERNMENT SHARE OF COSTS.— 
‘‘(1) CAPITAL PROJECTS.—A grant for a capital project under 
this section shall be for 80 percent of the net project cost
H. R. 4348—251 
of the project. The recipient may provide additional local 
matching amounts. 
‘‘(2) OPERATING EXPENSES.—A grant for operating expenses 
under this section may not exceed 50 percent of the net project 
cost of the project. 
‘‘(3) REMAINING
COSTS.—Subject to paragraph (4), the 
remainder of the net project costs shall be provided— 
‘‘(A) in cash from non-Government sources other than 
revenues from providing public transportation services; 
‘‘(B) from revenues from the sale of advertising and 
concessions; 
‘‘(C) from an undistributed cash surplus, a replacement 
or depreciation cash fund or reserve, or new capital; 
‘‘(D) from amounts appropriated or otherwise made 
available to a department or agency of the Government 
(other than the Department of Transportation) that are 
eligible to be expended for transportation; and 
‘‘(E) from amounts received under a service agreement 
with a State or local social service agency or private social 
service organization. 
‘‘(4) USE
OF
CERTAIN
FUNDS.—For purposes of subpara-
graphs (D) and (E) of paragraph (3), the prohibitions on the 
use of funds for matching requirements under section 
403(a)(5)(C)(vii) of the Social Security Act (42 U.S.C. 
603(a)(5)(C)(vii)) shall not apply to Federal or State funds to 
be used for transportation purposes. 
‘‘(e) UNDERTAKING PROJECTS IN ADVANCE.— 
‘‘(1) PAYMENT.—The Secretary may pay the Government 
share of the net project cost to a State or local governmental 
authority that carries out any part of a project eligible under 
subparagraph (A) or (B) of subsection (a)(1) without the aid 
of amounts of the Government and according to all applicable 
procedures and requirements if— 
‘‘(A) the recipient applies for the payment; 
‘‘(B) the Secretary approves the payment; and 
‘‘(C) before carrying out any part of the project, the 
Secretary approves the plans and specifications for the 
part in the same way as for other projects under this 
section. 
‘‘(2) APPROVAL
OF
APPLICATION.—The Secretary may 
approve an application under paragraph (1) of this subsection 
only if an authorization for this section is in effect for the 
fiscal year to which the application applies. The Secretary 
may not approve an application if the payment will be more 
than— 
‘‘(A) the recipient’s expected apportionment under sec-
tion 5336 of this title if the total amount authorized to 
be appropriated for the fiscal year to carry out this section 
is appropriated; less 
‘‘(B) the maximum amount of the apportionment that 
may be made available for projects for operating expenses 
under this section. 
‘‘(3) 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 recipient to the extent proceeds 
of the bonds are expended in carrying out the part.
H. R. 4348—252 
‘‘(B) LIMITATION ON THE AMOUNT OF INTEREST.—The 
amount of interest allowed under this paragraph may not 
be more than the most favorable financing terms reason-
ably 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 financing terms. 
‘‘(f) REVIEWS, AUDITS, AND EVALUATIONS.— 
‘‘(1) ANNUAL REVIEW.— 
‘‘(A) IN
GENERAL.—At least annually, the Secretary 
shall carry out, or require a recipient to have carried out 
independently, reviews and audits the Secretary considers 
appropriate to establish whether the recipient has carried 
out— 
‘‘(i) the activities proposed under subsection (c) 
of this section in a timely and effective way and can 
continue to do so; and 
‘‘(ii) those activities and its certifications and has 
used amounts of the Government in the way required 
by law. 
‘‘(B) AUDITING PROCEDURES.—An audit of the use of 
amounts of the Government shall comply with the auditing 
procedures of the Comptroller General. 
‘‘(2) TRIENNIAL REVIEW.—At least once every 3 years, the 
Secretary shall review and evaluate completely the performance 
of a recipient in carrying out the recipient’s program, specifi-
cally referring to compliance with statutory and administrative 
requirements and the extent to which actual program activities 
are consistent with the activities proposed under subsection 
(c) of this section and the planning process required under 
sections 5303, 5304, and 5305 of this title. To the extent prac-
ticable, the Secretary shall coordinate such reviews with any 
related State or local reviews. 
‘‘(3) ACTIONS RESULTING FROM REVIEW, AUDIT, OR EVALUA-
TION.—The Secretary may take appropriate action consistent 
with a review, audit, and evaluation under this subsection, 
including making an appropriate adjustment in the amount 
of a grant or withdrawing the grant. 
‘‘(g) TREATMENT.—For purposes of this section, the United 
States Virgin Islands shall be treated as an urbanized area, as 
defined in section 5302. 
‘‘(h) PASSENGER FERRY GRANTS.— 
‘‘(1) IN GENERAL.—The Secretary may make grants under 
this subsection to recipients for passenger ferry projects that 
are eligible for a grant under subsection (a). 
‘‘(2) GRANT REQUIREMENTS.—Except as otherwise provided 
in this subsection, a grant under this subsection shall be subject 
to the same terms and conditions as a grant under subsection 
(a). 
‘‘(3) COMPETITIVE
PROCESS.—The Secretary shall solicit 
grant applications and make grants for eligible projects on 
a competitive basis.’’. 
SEC. 20008. FIXED GUIDEWAY CAPITAL INVESTMENT GRANTS. 
(a) IN GENERAL.—Section 5309 of title 49, United States Code, 
is amended to read as follows:
H. R. 4348—253 
‘‘§ 5309. Fixed guideway capital investment grants 
‘‘(a) DEFINITIONS.—In this section, the following definitions 
shall apply: 
‘‘(1) APPLICANT.—The term ‘applicant’ means a State or 
local governmental authority that applies for a grant under 
this section. 
‘‘(2) CORE CAPACITY IMPROVEMENT PROJECT.—The term ‘core 
capacity improvement project’ means a substantial corridor- 
based capital investment in an existing fixed guideway system 
that increases the capacity of a corridor by not less than 10 
percent. The term does not include project elements designed 
to maintain a state of good repair of the existing fixed guideway 
system. 
‘‘(3) CORRIDOR-BASED
BUS
RAPID
TRANSIT
PROJECT.—The 
term ‘corridor-based bus rapid transit project’ means a small 
start project utilizing buses in which the project represents 
a substantial investment in a defined corridor as demonstrated 
by features that emulate the services provided by rail fixed 
guideway public transportation systems, including defined sta-
tions; traffic signal priority for public transportation vehicles; 
short headway bidirectional services for a substantial part of 
weekdays and weekend days; and any other features the Sec-
retary may determine support a long-term corridor investment, 
but the majority of which does not operate in a separated 
right-of-way dedicated for public transportation use during peak 
periods. 
‘‘(4) FIXED GUIDEWAY BUS RAPID TRANSIT PROJECT.—The 
term ‘fixed guideway bus rapid transit project’ means a bus 
capital project— 
‘‘(A) in which the majority of the project operates in 
a separated right-of-way dedicated for public transportation 
use during peak periods; 
‘‘(B) that represents a substantial investment in a 
single route in a defined corridor or subarea; and 
‘‘(C) that includes features that emulate the services 
provided by rail fixed guideway public transportation sys-
tems, including— 
‘‘(i) defined stations; 
‘‘(ii) traffic signal priority for public transportation 
vehicles; 
‘‘(iii) short headway bidirectional services for a 
substantial part of weekdays and weekend days; and 
‘‘(iv) any other features the Secretary may deter-
mine are necessary to produce high-quality public 
transportation services that emulate the services pro-
vided by rail fixed guideway public transportation sys-
tems. 
‘‘(5) NEW
FIXED
GUIDEWAY
CAPITAL
PROJECT.—The term 
‘new fixed guideway capital project’ means— 
‘‘(A) a new fixed guideway project that is a minimum 
operable segment or extension to an existing fixed guideway 
system; or 
‘‘(B) a fixed guideway bus rapid transit project that 
is a minimum operable segment or an extension to an 
existing bus rapid transit system.
H. R. 4348—254 
‘‘(6) PROGRAM OF INTERRELATED PROJECTS.—The term ‘pro-
gram of interrelated projects’ means the simultaneous develop-
ment of— 
‘‘(A) 2 or more new fixed guideway capital projects 
or core capacity improvement projects; or 
‘‘(B) 1 or more new fixed guideway capital projects 
and 1 or more core capacity improvement projects. 
‘‘(7) SMALL START PROJECT.—The term ‘small start project’ 
means a new fixed guideway capital project or corridor-based 
bus rapid transit project for which— 
‘‘(A) the Federal assistance provided or to be provided 
under this section is less than $75,000,000; and 
‘‘(B) the total estimated net capital cost is less than 
$250,000,000. 
‘‘(b) GENERAL AUTHORITY.—The Secretary may make grants 
under this section to State and local governmental authorities to 
assist in financing— 
‘‘(1) new fixed guideway capital projects or small start 
projects, including the acquisition of real property, the initial 
acquisition of rolling stock for the system, the acquisition of 
rights-of-way, and relocation, for fixed guideway corridor 
development for projects in the advanced stages of project 
development or engineering; and 
‘‘(2) core capacity improvement projects, including the 
acquisition of real property, the acquisition of rights-of-way, 
double tracking, signalization improvements, electrification, 
expanding system platforms, acquisition of rolling stock associ-
ated with corridor improvements increasing capacity, construc-
tion of infill stations, and such other capacity improvement 
projects as the Secretary determines are appropriate to increase 
the capacity of an existing fixed guideway system corridor 
by at least 10 percent. Core capacity improvement projects 
do not include elements to improve general station facilities 
or parking, or acquisition of rolling stock alone. 
‘‘(c) GRANT REQUIREMENTS.— 
‘‘(1) IN GENERAL.—The Secretary may make a grant under 
this section for new fixed guideway capital projects, small start 
projects, or core capacity improvement projects, if the Secretary 
determines that— 
‘‘(A) the project is part of an approved transportation 
plan required under sections 5303 and 5304; and 
‘‘(B) the applicant has, or will have— 
‘‘(i) the legal, financial, and technical capacity to 
carry out the project, including the safety and security 
aspects of the project; 
‘‘(ii) satisfactory continuing control over the use 
of the equipment or facilities; and 
‘‘(iii) the technical and financial capacity to main-
tain new and existing equipment and facilities. 
‘‘(2) CERTIFICATION.—An applicant that has submitted the 
certifications required under subparagraphs (A), (B), (C), and 
(H) of section 5307(c)(1) shall be deemed to have provided 
sufficient information upon which the Secretary may make 
the determinations required under this subsection. 
‘‘(3) TECHNICAL
CAPACITY.—The Secretary shall use an 
expedited technical capacity review process for applicants that 
have recently and successfully completed at least 1 new fixed
H. R. 4348—255 
guideway capital project, or core capacity improvement project, 
if— 
‘‘(A) the applicant achieved budget, cost, and ridership 
outcomes for the project that are consistent with or better 
than projections; and 
‘‘(B) the applicant demonstrates that the applicant con-
tinues to have the staff expertise and other resources nec-
essary to implement a new project. 
‘‘(4) RECIPIENT
REQUIREMENTS.—A recipient of a grant 
awarded under this section shall be subject to all terms, condi-
tions, requirements, and provisions that the Secretary deter-
mines to be necessary or appropriate for purposes of this sec-
tion. 
‘‘(d) NEW FIXED GUIDEWAY GRANTS.— 
‘‘(1) PROJECT DEVELOPMENT PHASE.— 
‘‘(A) ENTRANCE INTO PROJECT DEVELOPMENT PHASE.— 
A new fixed guideway capital project shall enter into the 
project development phase when— 
‘‘(i) the applicant— 
‘‘(I) submits a letter to the Secretary describing 
the project and requesting entry into the project 
development phase; and 
‘‘(II) initiates activities required to be carried 
out under the National Environmental Policy Act 
of 1969 (42 U.S.C. 4321 et seq.) with respect to 
the project; and 
‘‘(ii) the Secretary— 
‘‘(I) responds in writing to the applicant within 
45 days whether the information provided is suffi-
cient to enter into the project development phase, 
including, when necessary, a detailed description 
of any information deemed insufficient; and 
‘‘(II) provides concurrent notice to the Com-
mittee on Banking, Housing, and Urban Affairs 
of the Senate and the Committee on Transpor-
tation and Infrastructure of the House of Rep-
resentatives of whether the new fixed guideway 
capital project is entering the project development 
phase. 
‘‘(B) 
ACTIVITIES
DURING
PROJECT
DEVELOPMENT 
PHASE.—Concurrent with the analysis required to be made 
under the National Environmental Policy Act of 1969 (42 
U.S.C. 4321 et seq.), each applicant shall develop sufficient 
information to enable the Secretary to make findings of 
project justification, policies and land use patterns that 
promote public transportation, and local financial commit-
ment under this subsection. 
‘‘(C) COMPLETION OF PROJECT DEVELOPMENT ACTIVITIES 
REQUIRED.— 
‘‘(i) IN
GENERAL.—Not later than 2 years after 
the date on which a project enters into the project 
development phase, the applicant shall complete the 
activities required to obtain a project rating under 
subsection (g)(2) and submit completed documentation 
to the Secretary. 
‘‘(ii) EXTENSION OF TIME.—Upon the request of an 
applicant, the Secretary may extend the time period
H. R. 4348—256 
under clause (i), if the applicant submits to the Sec-
retary— 
‘‘(I) a reasonable plan for completing the activi-
ties required under this paragraph; and 
‘‘(II) an estimated time period within which 
the applicant will complete such activities. 
‘‘(2) ENGINEERING PHASE.— 
‘‘(A) IN GENERAL.—A new fixed guideway capital project 
may advance to the engineering phase upon completion 
of activities required under the National Environmental 
Policy Act of 1969 (42 U.S.C. 4321 et seq.), as demonstrated 
by a record of decision with respect to the project, a finding 
that the project has no significant impact, or a determina-
tion that the project is categorically excluded, only if the 
Secretary determines that the project— 
‘‘(i) is selected as the locally preferred alternative 
at the completion of the process required under the 
National Environmental Policy Act of 1969 (42 U.S.C. 
4321 et seq.); 
‘‘(ii) is adopted into the metropolitan transpor-
tation plan required under section 5303; 
‘‘(iii) is justified based on a comprehensive review 
of the project’s mobility improvements, the project’s 
environmental benefits, congestion relief associated 
with the project, economic development effects associ-
ated with the project, policies and land use patterns 
of the project that support public transportation, and 
the project’s cost-effectiveness as measured by cost per 
rider; 
‘‘(iv) is supported by policies and land use patterns 
that promote public transportation, including plans for 
future land use and rezoning, and economic develop-
ment around public transportation stations; and 
‘‘(v) is supported by an acceptable degree of local 
financial commitment (including evidence of stable and 
dependable financing sources), as required under sub-
section (f). 
‘‘(B) DETERMINATION THAT PROJECT IS JUSTIFIED.—In 
making a determination under subparagraph (A)(iii), the 
Secretary shall evaluate, analyze, and consider— 
‘‘(i) the reliability of the forecasting methods used 
to estimate costs and utilization made by the recipient 
and the contractors to the recipient; and 
‘‘(ii) 
population 
density 
and 
current 
public 
transportation ridership in the transportation corridor. 
‘‘(e) CORE CAPACITY IMPROVEMENT PROJECTS.— 
‘‘(1) PROJECT DEVELOPMENT PHASE.— 
‘‘(A) ENTRANCE INTO PROJECT DEVELOPMENT PHASE.— 
A core capacity improvement project shall be deemed to 
have entered into the project development phase if— 
‘‘(i) the applicant— 
‘‘(I) submits a letter to the Secretary describing 
the project and requesting entry into the project 
development phase; and 
‘‘(II) initiates activities required to be carried 
out under the National Environmental Policy Act
H. R. 4348—257 
of 1969 (42 U.S.C. 4321 et seq.) with respect to 
the project; and 
‘‘(ii) the Secretary— 
‘‘(I) responds in writing to the applicant within 
45 days whether the information provided is suffi-
cient to enter into the project development phase, 
including when necessary a detailed description 
of any information deemed insufficient; and 
‘‘(II) provides concurrent notice to the Com-
mittee on Banking, Housing, and Urban Affairs 
of the Senate and the Committee on Transpor-
tation and Infrastructure of the House of Rep-
resentatives of whether the core capacity improve-
ment project is entering the project development 
phase. 
‘‘(B) 
ACTIVITIES
DURING
PROJECT
DEVELOPMENT 
PHASE.—Concurrent with the analysis required to be made 
under the National Environmental Policy Act of 1969 (42 
U.S.C. 4321 et seq.), each applicant shall develop sufficient 
information to enable the Secretary to make findings of 
project justification and local financial commitment under 
this subsection. 
‘‘(C) COMPLETION OF PROJECT DEVELOPMENT ACTIVITIES 
REQUIRED.— 
‘‘(i) IN
GENERAL.—Not later than 2 years after 
the date on which a project enters into the project 
development phase, the applicant shall complete the 
activities required to obtain a project rating under 
subsection (g)(2) and submit completed documentation 
to the Secretary. 
‘‘(ii) EXTENSION OF TIME.—Upon the request of an 
applicant, the Secretary may extend the time period 
under clause (i), if the applicant submits to the Sec-
retary— 
‘‘(I) a reasonable plan for completing the activi-
ties required under this paragraph; and 
‘‘(II) an estimated time period within which 
the applicant will complete such activities. 
‘‘(2) ENGINEERING PHASE.— 
‘‘(A) IN GENERAL.—A core capacity improvement project 
may advance into the engineering phase upon completion 
of activities required under the National Environmental 
Policy Act of 1969 (42 U.S.C. 4321 et seq.), as demonstrated 
by a record of decision with respect to the project, a finding 
that the project has no significant impact, or a determina-
tion that the project is categorically excluded, only if the 
Secretary determines that the project— 
‘‘(i) is selected as the locally preferred alternative 
at the completion of the process required under the 
National Environmental Policy Act of 1969; 
‘‘(ii) is adopted into the metropolitan transpor-
tation plan required under section 5303; 
‘‘(iii) is in a corridor that is— 
‘‘(I) at or over capacity; or 
‘‘(II) projected to be at or over capacity within 
the next 5 years;
H. R. 4348—258 
‘‘(iv) is justified based on a comprehensive review 
of the project’s mobility improvements, the project’s 
environmental benefits, congestion relief associated 
with the project, economic development effects associ-
ated with the project, the capacity needs of the corridor, 
and the project’s cost-effectiveness as measured by cost 
per rider; and 
‘‘(v) is supported by an acceptable degree of local 
financial commitment (including evidence of stable and 
dependable financing sources), as required under sub-
section (f). 
‘‘(B) DETERMINATION THAT PROJECT IS JUSTIFIED.—In 
making a determination under subparagraph (A)(iv), the 
Secretary shall evaluate, analyze, and consider— 
‘‘(i) the reliability of the forecasting methods used 
to estimate costs and utilization made by the recipient 
and the contractors to the recipient; 
‘‘(ii) whether the project will increase capacity at 
least 10 percent in a corridor; 
‘‘(iii) 
whether 
the 
project 
will 
improve 
interconnectivity among existing systems; and 
‘‘(iv) whether the project will improve environ-
mental outcomes. 
‘‘(f) FINANCING SOURCES.— 
‘‘(1) REQUIREMENTS.—In determining whether a project is 
supported by an acceptable degree of local financial commitment 
and shows evidence of stable and dependable financing sources 
for purposes of subsection (d)(2)(A)(v) or (e)(2)(A)(v), the Sec-
retary shall require that— 
‘‘(A) the proposed project plan provides for the avail-
ability of contingency amounts that the Secretary deter-
mines to be reasonable to cover unanticipated cost increases 
or funding shortfalls; 
‘‘(B) each proposed local source of capital and operating 
financing is stable, reliable, and available within the pro-
posed project timetable; and 
‘‘(C) local resources are available to recapitalize, main-
tain, and operate the overall existing and proposed public 
transportation system, including essential feeder bus and 
other services necessary to achieve the projected ridership 
levels without requiring a reduction in existing public 
transportation services or level of service to operate the 
project. 
‘‘(2) CONSIDERATIONS.—In assessing the stability, reli-
ability, and availability of proposed sources of local financing 
for purposes of subsection (d)(2)(A)(v) or (e)(2)(A)(v), the Sec-
retary shall consider— 
‘‘(A) the reliability of the forecasting methods used 
to estimate costs and revenues made by the recipient and 
the contractors to the recipient; 
‘‘(B) existing grant commitments; 
‘‘(C) the degree to which financing sources are dedi-
cated to the proposed purposes; 
‘‘(D) any debt obligation that exists, or is proposed 
by the recipient, for the proposed project or other public 
transportation purpose;
H. R. 4348—259 
‘‘(E) the extent to which the project has a local financial 
commitment that exceeds the required non-Government 
share of the cost of the project; and 
‘‘(F) private contributions to the project, including cost- 
effective project delivery, management or transfer of project 
risks, expedited project schedule, financial partnering, and 
other public-private partnership strategies. 
‘‘(g) PROJECT ADVANCEMENT AND RATINGS.— 
‘‘(1) PROJECT ADVANCEMENT.—A new fixed guideway capital 
project or core capacity improvement project proposed to be 
carried out using a grant under this section may not advance 
from the project development phase to the engineering phase, 
or from the engineering phase to the construction phase, unless 
the Secretary determines that— 
‘‘(A) the project meets the applicable requirements 
under this section; and 
‘‘(B) there is a reasonable likelihood that the project 
will continue to meet the requirements under this section. 
‘‘(2) RATINGS.— 
‘‘(A) OVERALL
RATING.—In making a determination 
under paragraph (1), the Secretary shall evaluate and rate 
a project as a whole on a 5-point scale (high, medium- 
high, medium, medium-low, or low) based on— 
‘‘(i) in the case of a new fixed guideway capital 
project, the project justification criteria under sub-
section (d)(2)(A)(iii), the policies and land use patterns 
that support public transportation, and the degree of 
local financial commitment; and 
‘‘(ii) in the case of a core capacity improvement 
project, the capacity needs of the corridor, the project 
justification criteria under subsection (e)(2)(A)(iv), and 
the degree of local financial commitment. 
‘‘(B) INDIVIDUAL
RATINGS
FOR
EACH
CRITERION.—In 
rating a project under this paragraph, the Secretary shall— 
‘‘(i) provide, in addition to the overall project rating 
under subparagraph (A), individual ratings for each 
of the criteria established under subsection (d)(2)(A)(iii) 
or (e)(2)(A)(iv), as applicable; and 
‘‘(ii) give comparable, but not necessarily equal, 
numerical weight to each of the criteria established 
under subsections (d)(2)(A)(iii) or (e)(2)(A)(iv), as 
applicable, in calculating the overall project rating 
under clause (i). 
‘‘(C) MEDIUM RATING NOT REQUIRED.—The Secretary 
shall not require that any single project justification cri-
terion meet or exceed a ‘medium’ rating in order to advance 
the project from one phase to another. 
‘‘(3) WARRANTS.—The Secretary shall, to the maximum 
extent practicable, develop and use special warrants for making 
a project justification determination under subsection (d)(2) 
or (e)(2), as applicable, for a project proposed to be funded 
using a grant under this section, if— 
‘‘(A) the share of the cost of the project to be provided 
under this section does not exceed— 
‘‘(i) $100,000,000; or 
‘‘(ii) 50 percent of the total cost of the project; 
‘‘(B) the applicant requests the use of the warrants;
H. R. 4348—260 
‘‘(C) the applicant certifies that its existing public 
transportation system is in a state of good repair; and 
‘‘(D) the applicant meets any other requirements that 
the Secretary considers appropriate to carry out this sub-
section. 
‘‘(4) LETTERS OF INTENT AND EARLY SYSTEMS WORK AGREE-
MENTS.—In order to expedite a project under this subsection, 
the Secretary shall, to the maximum extent practicable, issue 
letters of intent and enter into early systems work agreements 
upon issuance of a record of decision for projects that receive 
an overall project rating of medium or better. 
‘‘(5) POLICY GUIDANCE.—The Secretary shall issue policy 
guidance regarding the review and evaluation process and cri-
teria— 
‘‘(A) not later than 180 days after the date of enactment 
of the Federal Public Transportation Act of 2012; and 
‘‘(B) each time the Secretary makes significant changes 
to the process and criteria, but not less frequently than 
once every 2 years. 
‘‘(6) RULES.—Not later than 1 year after the date of enact-
ment of the Federal Public Transportation Act of 2012, the 
Secretary shall issue rules establishing an evaluation and 
rating process for— 
‘‘(A) new fixed guideway capital projects that is based 
on the results of project justification, policies and land 
use patterns that promote public transportation, and local 
financial commitment, as required under this subsection; 
and 
‘‘(B) core capacity improvement projects that is based 
on the results of the capacity needs of the corridor, project 
justification, and local financial commitment. 
‘‘(7) APPLICABILITY.—This subsection shall not apply to a 
project for which the Secretary issued a letter of intent, entered 
into a full funding grant agreement, or entered into a project 
construction agreement before the date of enactment of the 
Federal Public Transportation Act of 2012. 
‘‘(h) SMALL START PROJECTS.— 
‘‘(1) IN GENERAL.—A small start project shall be subject 
to the requirements of this subsection. 
‘‘(2) PROJECT DEVELOPMENT PHASE.— 
‘‘(A) ENTRANCE INTO PROJECT DEVELOPMENT PHASE.— 
A new small starts project shall enter into the project 
development phase when— 
‘‘(i) the applicant— 
‘‘(I) submits a letter to the Secretary describing 
the project and requesting entry into the project 
development phase; and 
‘‘(II) initiates activities required to be carried 
out under the National Environmental Policy Act 
of 1969 (42 U.S.C. 4321 et seq.) with respect to 
the project; and 
‘‘(ii) the Secretary— 
‘‘(I) responds in writing to the applicant within 
45 days whether the information provided is suffi-
cient to enter into the project development phase, 
including, when necessary, a detailed description 
of any information deemed insufficient; and
H. R. 4348—261 
‘‘(II) provides concurrent notice to the Com-
mittee on Banking, Housing, and Urban Affairs 
of the Senate and the Committee on Transpor-
tation and Infrastructure of the House of Rep-
resentatives of whether the small starts project 
is entering the project development phase. 
‘‘(B) 
ACTIVITIES
DURING
PROJECT
DEVELOPMENT 
PHASE.—Concurrent with the analysis required to be made 
under the National Environmental Policy Act of 1969 (42 
U.S.C. 4321 et seq.), each applicant shall develop sufficient 
information to enable the Secretary to make findings of 
project justification, policies and land use patterns that 
promote public transportation, and local financial commit-
ment under this subsection. 
‘‘(3) SELECTION CRITERIA.—The Secretary may provide Fed-
eral assistance for a small start project under this subsection 
only if the Secretary determines that the project— 
‘‘(A) has been adopted as the locally preferred alter-
native as part of the metropolitan transportation plan 
required under section 5303; 
‘‘(B) is based on the results of an analysis of the bene-
fits of the project as set forth in paragraph (4); and 
‘‘(C) is supported by an acceptable degree of local finan-
cial commitment. 
‘‘(4) EVALUATION OF BENEFITS AND FEDERAL INVESTMENT.— 
In making a determination for a small start project under 
paragraph (3)(B), the Secretary shall analyze, evaluate, and 
consider the following evaluation criteria for the project (as 
compared to a no-action alternative): mobility improvements, 
environmental benefits, congestion relief, economic development 
effects associated with the project, policies and land use pat-
terns that support public transportation and cost-effectiveness 
as measured by cost per rider. 
‘‘(5) EVALUATION OF LOCAL FINANCIAL COMMITMENT.—For 
purposes of paragraph (3)(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. 
‘‘(6) RATINGS.—In carrying out paragraphs (4) and (5) for 
a small start project, the Secretary shall evaluate and rate 
the project on a 5-point scale (high, medium-high, medium, 
medium-low, or low) based on an evaluation of the benefits 
of the project as compared to the Federal assistance to be 
provided and the degree of local financial commitment, as 
required under this subsection. In rating the projects, the Sec-
retary shall provide, in addition to the overall project rating, 
individual ratings for each of the criteria established by this 
subsection and shall give comparable, but not necessarily equal, 
numerical weight to the benefits that the project will bring 
to the community in calculating the overall project rating. 
‘‘(7) GRANTS AND EXPEDITED GRANT AGREEMENTS.— 
‘‘(A) IN
GENERAL.—The Secretary, to the maximum 
extent practicable, shall provide Federal assistance under 
this subsection in a single grant. If the Secretary cannot 
provide such a single grant, the Secretary may execute
H. R. 4348—262 
an expedited grant agreement in order to include a commit-
ment on the part of the Secretary to provide funding for 
the project in future fiscal years. 
‘‘(B) TERMS OF EXPEDITED GRANT AGREEMENTS.—In exe-
cuting an expedited grant agreement under this subsection, 
the Secretary may include in the agreement terms similar 
to those established under subsection (k)(2). 
‘‘(C) NOTICE
OF
PROPOSED
GRANTS
AND
EXPEDITED 
GRANT AGREEMENTS.—At least 10 days before making a 
grant award or entering into a grant agreement for a 
project under this subsection, the Secretary shall notify, 
in writing, the Committee on Transportation and Infra-
structure and the Committee on Appropriations of the 
House of Representatives and the Committee on Banking, 
Housing, and Urban Affairs and the Committee on Appro-
priations of the Senate of the proposed grant or expedited 
grant agreement, as well as the evaluations and ratings 
for the project. 
‘‘(i) PROGRAMS OF INTERRELATED PROJECTS.— 
‘‘(1) PROJECT
DEVELOPMENT
PHASE.—A federally funded 
project in a program of interrelated projects shall advance 
through project development as provided in subsection (d) or 
(e), as applicable. 
‘‘(2) ENGINEERING PHASE.—A federally funded project in 
a program of interrelated projects may advance into the 
engineering phase upon completion of activities required under 
the National Environmental Policy Act of 1969 (42 U.S.C. 4321 
et seq.), as demonstrated by a record of decision with respect 
to the project, a finding that the project has no significant 
impact, or a determination that the project is categorically 
excluded, only if the Secretary determines that— 
‘‘(A) the project is selected as the locally preferred 
alternative at the completion of the process required under 
the National Environmental Policy Act of 1969; 
‘‘(B) the project is adopted into the metropolitan 
transportation plan required under section 5303; 
‘‘(C) the program of interrelated projects involves 
projects that have a logical connectivity to one another; 
‘‘(D) the program of interrelated projects, when evalu-
ated as a whole, meets the requirements of subsection 
(d)(2) or (e)(2), as applicable; 
‘‘(E) the program of interrelated projects is supported 
by a program implementation plan demonstrating that 
construction will begin on each of the projects in the pro-
gram of interrelated projects within a reasonable time 
frame; and 
‘‘(F) the program of interrelated projects is supported 
by an acceptable degree of local financial commitment, 
as described in subsection (f). 
‘‘(3) PROJECT ADVANCEMENT AND RATINGS.— 
‘‘(A) PROJECT
ADVANCEMENT.—A project receiving a 
grant under this section that is part of a program of inter-
related projects may not advance from the project develop-
ment phase to the engineering phase, or from the 
engineering phase to the construction phase, unless the 
Secretary determines that the program of interrelated 
projects meets the applicable requirements of this section
H. R. 4348—263 
and there is a reasonable likelihood that the program will 
continue to meet such requirements. 
‘‘(B) RATINGS.— 
‘‘(i) OVERALL RATING.—In making a determination 
under subparagraph (A), the Secretary shall evaluate 
and rate a program of interrelated projects on a 5- 
point scale (high, medium-high, medium, medium-low, 
or low) based on the criteria described in paragraph 
(2). 
‘‘(ii) INDIVIDUAL RATING FOR EACH CRITERION.—In 
rating a program of interrelated projects, the Secretary 
shall provide, in addition to the overall program rating, 
individual ratings for each of the criteria described 
in paragraph (2) and shall give comparable, but not 
necessarily equal, numerical weight to each such cri-
terion in calculating the overall program rating. 
‘‘(iii) MEDIUM
RATING
NOT
REQUIRED.—The Sec-
retary shall not require that any single criterion 
described in paragraph (2) meet or exceed a ‘medium’ 
rating in order to advance the program of interrelated 
projects from one phase to another. 
‘‘(4) ANNUAL REVIEW.— 
‘‘(A) REVIEW REQUIRED.—The Secretary shall annually 
review the program implementation plan required under 
paragraph (2)(E) to determine whether the program of 
interrelated projects is adhering to its schedule. 
‘‘(B) EXTENSION OF TIME.—If a program of interrelated 
projects is not adhering to its schedule, the Secretary may, 
upon the request of the applicant, grant an extension of 
time if the applicant submits a reasonable plan that 
includes— 
‘‘(i) evidence of continued adequate funding; and 
‘‘(ii) an estimated time frame for completing the 
program of interrelated projects. 
‘‘(C) SATISFACTORY PROGRESS REQUIRED.—If the Sec-
retary determines that a program of interrelated projects 
is not making satisfactory progress, no Federal funds shall 
be provided for a project within the program of interrelated 
projects. 
‘‘(5) FAILURE TO CARRY OUT PROGRAM OF INTERRELATED 
PROJECTS.— 
‘‘(A) REPAYMENT REQUIRED.—If an applicant does not 
carry out the program of interrelated projects within a 
reasonable time, for reasons within the control of the 
applicant, the applicant shall repay all Federal funds pro-
vided for the program, and any reasonable interest and 
penalty charges that the Secretary may establish. 
‘‘(B) CREDITING
OF
FUNDS
RECEIVED.—Any funds 
received by the Government under this paragraph, other 
than interest and penalty charges, shall be credited to 
the appropriation account from which the funds were origi-
nally derived. 
‘‘(6) NON-FEDERAL
FUNDS.—Any non-Federal funds com-
mitted to a project in a program of interrelated projects may 
be used to meet a non-Government share requirement for any 
other project in the program of interrelated projects, if the
H. R. 4348—264 
Government share of the cost of each project within the program 
of interrelated projects does not exceed 80 percent. 
‘‘(7) PRIORITY.—In making grants under this section, the 
Secretary may give priority to programs of interrelated projects 
for which the non-Government share of the cost of the projects 
included in the programs of interrelated projects exceeds the 
non-Government share required under subsection (l). 
‘‘(8) NON-GOVERNMENT PROJECTS.—Including a project not 
financed by the Government in a program of interrelated 
projects does not impose Government requirements that would 
not otherwise apply to the project. 
‘‘(j) PREVIOUSLY ISSUED LETTER OF INTENT OR FULL FUNDING 
GRANT AGREEMENT.—Subsections (d) and (e) shall not apply to 
projects for which the Secretary has issued a letter of intent, 
approved entry into final design, entered into a full funding grant 
agreement, or entered into a project construction grant agreement 
before the date of enactment of the Federal Public Transportation 
Act of 2012. 
‘‘(k) 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 new fixed guide-
way capital project or core capacity improvement project, 
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 a capital project under this 
section, 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), 1501, and 1502(a) of title 31 or an adminis-
trative commitment. 
‘‘(2) FULL FUNDING GRANT AGREEMENTS.— 
‘‘(A) IN GENERAL.—A new fixed guideway capital project 
or core capacity improvement project shall be carried out 
through a full funding grant agreement. 
‘‘(B) CRITERIA.—The Secretary shall enter into a full 
funding grant agreement, based on the evaluations and 
ratings required under subsection (d), (e), or (i), as 
applicable, with each grantee receiving assistance for a 
new fixed guideway capital project or core capacity improve-
ment project that has been rated as high, medium-high, 
or medium, in accordance with subsection (g)(2)(A) or 
(i)(3)(B), as applicable. 
‘‘(C) TERMS.—A full funding grant agreement shall— 
‘‘(i) establish the terms of participation by the 
Government in a new fixed guideway capital project 
or core capacity improvement project; 
‘‘(ii) establish the maximum amount of Federal 
financial assistance for the project; 
‘‘(iii) include the period of time for completing the 
project, even if that period extends beyond the period 
of an authorization; and
H. R. 4348—265 
‘‘(iv) make timely and efficient management of the 
project easier according to the law of the United States. 
‘‘(D) 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 new fixed guideway capital project shall 
be sufficient to complete at least an operable segment. 
‘‘(E) BEFORE AND AFTER STUDY.— 
‘‘(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 or core capacity 
improvement project on public transportation serv-
ices and public transportation ridership; 
‘‘(II) evaluates the consistency of predicted and 
actual project characteristics and performance; and 
‘‘(III) identifies reasons for differences between 
predicted and actual outcomes. 
‘‘(ii) INFORMATION
COLLECTION
AND
ANALYSIS 
PLAN.— 
‘‘(I) SUBMISSION OF PLAN.—Applicants seeking 
a full funding grant agreement under this para-
graph shall submit a complete plan for the collec-
tion and analysis of information to identify the 
impacts of the new fixed guideway capital project 
or core capacity improvement 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 agree-
ment as an eligible activity. 
‘‘(II) CONTENTS OF PLAN.—The plan submitted 
under subclause (I) shall provide for— 
‘‘(aa) collection of data on the current 
public transportation system regarding public
H. R. 4348—266 
transportation service levels and ridership pat-
terns, 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 public 
transportation system 2 years after the 
opening of a new fixed guideway capital 
project or core capacity improvement project, 
including analogous information on public 
transportation service levels and ridership pat-
terns and information on the as-built scope, 
capital, and financing costs of the project; and 
‘‘(dd) analysis of the consistency of pre-
dicted project characteristics with actual out-
comes. 
‘‘(F) 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 under subpara-
graph (E)(ii), before the beginning of construction of the 
proposed new fixed guideway capital project or core 
capacity improvement project. Collection of this data shall 
be included in the full funding grant agreement as an 
eligible activity. 
‘‘(3) EARLY SYSTEMS WORK AGREEMENTS.— 
‘‘(A) CONDITIONS.—The Secretary may enter into 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 
‘‘(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.—An early systems work agree-
ment under this paragraph obligates budget authority 
available under this chapter and title 23 and shall 
provide for reimbursement of preliminary costs of car-
rying out the project, including land acquisition, timely 
procurement of system elements for which specifica-
tions are decided, and other activities the Secretary 
decides are appropriate to make efficient, long-term 
project management easier. 
‘‘(ii) CONTINGENT COMMITMENT.—An early systems 
work agreement may include a commitment, contingent 
on amounts to be specified in law in advance for 
commitments under this paragraph, to obligate an 
additional amount from future available budget 
authority specified in law. 
‘‘(iii) PERIOD
COVERED.—An early systems work 
agreement under this paragraph shall cover the period
H. R. 4348—267 
of time the Secretary considers appropriate. The period 
may extend beyond the period of current authorization. 
‘‘(iv) INTEREST
AND
OTHER
FINANCING
COSTS.— 
Interest and other financing costs of efficiently carrying 
out the early systems work agreement within a reason-
able 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. 
‘‘(v) 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 Federal grant funds awarded for the project 
from all Federal funding sources, for all project activi-
ties, facilities, and equipment, plus reasonable interest 
and penalty charges allowable by law or established 
by the Secretary in the early systems work agreement. 
‘‘(vi) CREDITING OF FUNDS RECEIVED.—Any funds 
received by the Government under this paragraph, 
other than interest and penalty charges, shall be cred-
ited to the appropriation account from which the funds 
were originally derived. 
‘‘(4) LIMITATION ON AMOUNTS.— 
‘‘(A) IN GENERAL.—The Secretary may enter into full 
funding grant agreements under this subsection for new 
fixed guideway capital projects and core capacity improve-
ment projects that contain contingent commitments to incur 
obligations in such amounts as the Secretary determines 
are appropriate. 
‘‘(B) APPROPRIATION REQUIRED.—An obligation may be 
made under this subsection only when amounts are appro-
priated for the obligation. 
‘‘(5) NOTIFICATION TO CONGRESS.—At least 30 days before 
issuing a letter of intent, entering into a full funding grant 
agreement, or entering into an early systems work agreement 
under this section, the Secretary shall notify, in writing, the 
Committee on Banking, Housing, and Urban Affairs and the 
Committee on Appropriations of the Senate and the Committee 
on Transportation and Infrastructure and the Committee on 
Appropriations of the House of Representatives 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. 
‘‘(l) GOVERNMENT SHARE
OF NET CAPITAL 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 capital project cost. A grant for a fixed guideway project 
or small start project shall not exceed 80 percent of the net 
capital project cost. A grant for a core capacity project shall 
not exceed 80 percent of the net capital project cost of the 
incremental cost of increasing the capacity in the corridor.
H. R. 4348—268 
‘‘(2) ADJUSTMENT FOR COMPLETION UNDER BUDGET.—The 
Secretary may adjust the final net capital project cost of a 
new fixed guideway capital project or core capacity improve-
ment project evaluated under subsection (d), (e), or (i) 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 capital 
project cost of the project is not more than 10 percent 
higher than the net capital project cost estimated at the 
time the project was approved for advancement into the 
engineering phase; and 
‘‘(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 the engineering phase. 
‘‘(4) REMAINDER
OF
NET
CAPITAL
PROJECT
COST.—The 
remainder of the net capital project cost shall be provided 
from an undistributed cash surplus, a replacement or deprecia-
tion cash fund or reserve, or new capital. 
‘‘(5) LIMITATION
ON
STATUTORY
CONSTRUCTION.—Nothing 
in this section 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 provided by 
the Government 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 shall 
not apply to projects for which the Secretary entered into 
a full funding grant agreement before the date of enactment 
of the Federal Public Transportation Act of 2012. 
‘‘(8) SPECIAL RULE FOR FIXED GUIDEWAY BUS RAPID TRANSIT 
PROJECTS.—For up to three fixed-guideway bus rapid transit 
projects each fiscal year the Secretary shall— 
‘‘(A) establish a Government share of at least 80 per-
cent; and 
‘‘(B) not lower the project’s rating for degree of local 
financial 
commitment 
for 
purposes 
of 
subsections 
(d)(2)(A)(v) or (h)(3)(C) as a result of the Government share 
specified in this paragraph. 
‘‘(m) UNDERTAKING PROJECTS IN ADVANCE.— 
‘‘(1) IN GENERAL.—The Secretary may pay the Government 
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—
H. R. 4348—269 
‘‘(A) the State or local governmental authority applies 
for the payment; 
‘‘(B) the Secretary approves the payment; and 
‘‘(C) before the State or local governmental authority 
carries 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 financing terms. 
‘‘(n) AVAILABILITY OF AMOUNTS.— 
‘‘(1) IN GENERAL.—An amount made available or appro-
priated for a new fixed guideway capital project or core capacity 
improvement project shall remain available to that project for 
5 fiscal years, including the fiscal year in which the amount 
is made available or appropriated. Any amounts that are unobli-
gated to the project at the end of the 5-fiscal-year period may 
be used by the Secretary for any purpose 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. 
‘‘(o) REPORTS ON NEW FIXED GUIDEWAY AND CORE CAPACITY 
IMPROVEMENT PROJECTS.— 
‘‘(1) ANNUAL REPORT ON FUNDING RECOMMENDATIONS.—Not 
later than the first Monday in February of each year, the 
Secretary shall submit to the Committee on Banking, Housing, 
and Urban Affairs and the Committee on Appropriations of 
the Senate and the Committee on Transportation and Infra-
structure and the Committee on Appropriations of the House 
of Representatives a report that includes— 
‘‘(A) a proposal of allocations of amounts to be available 
to finance grants for projects under this section among 
applicants for these amounts; 
‘‘(B) evaluations and ratings, as required under sub-
sections (d), (e), and (i), for each such project that is in 
project development, engineering, or has received a full 
funding grant agreement; 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) REPORTS ON BEFORE AND AFTER STUDIES.—Not later 
than the first Monday in August of each year, the Secretary 
shall submit to the committees described in paragraph (1) a
H. R. 4348—270 
report containing a summary of the results of any studies 
conducted under subsection (k)(2)(E). 
‘‘(3) BIENNIAL GAO REVIEW.—The Comptroller General of 
the United States shall— 
‘‘(A) conduct a biennial review of— 
‘‘(i) the processes and procedures for evaluating, 
rating, and recommending new fixed guideway capital 
projects and core capacity improvement 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.’’. 
(b) PILOT PROGRAM FOR EXPEDITED PROJECT DELIVERY.— 
(1) DEFINITIONS.—In this subsection the following defini-
tions shall apply: 
(A) ELIGIBLE
PROJECT.—The term ‘‘eligible project’’ 
means a new fixed guideway capital project or a core 
capacity improvement project, as those terms are defined 
in section 5309 of title 49, United States Code, as amended 
by this section, that has not entered into a full funding 
grant agreement with the Federal Transit Administration 
before the date of enactment of the Federal Public 
Transportation Act of 2012. 
(B) PROGRAM.—The term ‘‘program’’ means the pilot 
program for expedited project delivery established under 
this subsection. 
(C) RECIPIENT.—The term ‘‘recipient’’ means a recipient 
of funding under chapter 53 of title 49, United States 
Code. 
(D) SECRETARY.—The term ‘‘Secretary’’ means the Sec-
retary of Transportation. 
(2) ESTABLISHMENT.—The Secretary shall establish and 
implement a pilot program to demonstrate whether innovative 
project development and delivery methods or innovative 
financing arrangements can expedite project delivery for certain 
meritorious new fixed guideway capital projects and core 
capacity improvement projects. 
(3) LIMITATION ON NUMBER OF PROJECTS.—The Secretary 
shall select 3 eligible projects to participate in the program, 
of which— 
(A) at least 1 shall be an eligible project requesting 
more than $100,000,000 in Federal financial assistance 
under section 5309 of title 49, United States Code; and 
(B) at least 1 shall be an eligible project requesting 
less than $100,000,000 in Federal financial assistance 
under section 5309 of title 49, United States Code. 
(4) GOVERNMENT SHARE.—The Government share of the 
total cost of an eligible project that participates in the program 
may not exceed 50 percent. 
(5) ELIGIBILITY.—A recipient that desires to participate 
in the program shall submit to the Secretary an application 
that contains, at a minimum— 
(A) identification of an eligible project; 
(B) a schedule and finance plan for the construction 
and operation of the eligible project;
H. R. 4348—271 
(C) an analysis of the efficiencies of the proposed 
project development and delivery methods or innovative 
financing arrangement for the eligible project; and 
(D) a certification that the recipient’s existing public 
transportation system is in a state of good repair. 
(6) SELECTION CRITERIA.—The Secretary may award a full 
funding grant agreement under this subsection if the Secretary 
determines that— 
(A) the recipient has completed planning and the activi-
ties required under the National Environmental Policy Act 
of 1969 (42 U.S.C. 4321 et seq.); and 
(B) the recipient has the necessary legal, financial, 
and technical capacity to carry out the eligible project. 
(7) BEFORE AND AFTER STUDY AND REPORT.— 
(A) STUDY REQUIRED.—A full funding grant agreement 
under this paragraph shall require a recipient to conduct 
a study that— 
(i) describes and analyzes the impacts of the 
eligible project on public transportation services and 
public transportation ridership; 
(ii) describes and analyzes the consistency of pre-
dicted and actual benefits and costs of the innovative 
project development and delivery methods or innova-
tive financing for the eligible project; and 
(iii) identifies reasons for any differences between 
predicted and actual outcomes for the eligible project. 
(B) SUBMISSION OF REPORT.—Not later than 9 months 
after an eligible project selected to participate in the pro-
gram begins revenue operations, the recipient shall submit 
to the Secretary a report on the results of the study under 
subparagraph (A). 
SEC. 20009. MOBILITY OF SENIORS AND INDIVIDUALS WITH DISABIL-
ITIES. 
Section 5310 of title 49, United States Code, is amended to 
read as follows: 
‘‘§ 5310. Formula grants for the enhanced mobility of seniors 
and individuals with disabilities 
‘‘(a) DEFINITIONS.—In this section, the following definitions 
shall apply: 
‘‘(1) RECIPIENT.—The term ‘recipient’ means a designated 
recipient or a State that receives a grant under this section 
directly. 
‘‘(2) SUBRECIPIENT.—The term ‘subrecipient’ means a State 
or local governmental authority, a private nonprofit organiza-
tion, or an operator of public transportation that receives a 
grant under this section indirectly through a recipient. 
‘‘(b) GENERAL AUTHORITY.— 
‘‘(1) GRANTS.—The Secretary may make grants under this 
section to recipients for— 
‘‘(A) public transportation projects planned, designed, 
and carried out to meet the special needs of seniors and 
individuals with disabilities when public transportation is 
insufficient, inappropriate, or unavailable;
H. R. 4348—272 
‘‘(B) public transportation projects that exceed the 
requirements of the Americans with Disabilities Act of 
1990 (42 U.S.C. 12101 et seq.); 
‘‘(C) public transportation projects that improve access 
to fixed route service and decrease reliance by individuals 
with disabilities on complementary paratransit; and 
‘‘(D) alternatives to public transportation that assist 
seniors and individuals with disabilities with transpor-
tation. 
‘‘(2) LIMITATIONS FOR CAPITAL PROJECTS.— 
‘‘(A) AMOUNT AVAILABLE.—The amount available for 
capital projects under paragraph (1)(A) shall be not less 
than 55 percent of the funds apportioned to the recipient 
under this section. 
‘‘(B) ALLOCATION
TO
SUBRECIPIENTS.—A recipient of 
a grant under paragraph (1)(A) may allocate the amounts 
provided under the grant to— 
‘‘(i) a private nonprofit organization; or 
‘‘(ii) a State or local governmental authority that— 
‘‘(I) is approved by a State to coordinate serv-
ices for seniors and individuals with disabilities; 
or 
‘‘(II) certifies that there are no private non-
profit organizations readily available in the area 
to provide the services described in paragraph 
(1)(A). 
‘‘(3) 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. 
‘‘(4) ELIGIBLE CAPITAL EXPENSES.—The acquisition of public 
transportation services is an eligible capital expense under 
this section. 
‘‘(5) COORDINATION.— 
‘‘(A) DEPARTMENT OF TRANSPORTATION.—To the max-
imum extent feasible, the Secretary shall coordinate activi-
ties under this section with related activities under other 
Federal departments and agencies. 
‘‘(B) 
OTHER
FEDERAL
AGENCIES
AND
NONPROFIT 
ORGANIZATIONS.—A State or local governmental authority 
or nonprofit organization that receives assistance from 
Government sources (other than the Department of 
Transportation) for nonemergency transportation services 
shall— 
‘‘(i) participate and coordinate with recipients of 
assistance under this chapter in the design and 
delivery of transportation services; and 
‘‘(ii) participate in the planning for the transpor-
tation services described in clause (i). 
‘‘(6) PROGRAM OF PROJECTS.— 
‘‘(A) IN GENERAL.—Amounts made available to carry 
out this section may be used for transportation projects 
to assist in providing transportation services for seniors 
and individuals with disabilities, if such transportation 
projects are included in a program of projects. 
‘‘(B) SUBMISSION.—A recipient shall annually submit 
a program of projects to the Secretary.
H. R. 4348—273 
‘‘(C) ASSURANCE.—The program of projects submitted 
under subparagraph (B) shall contain an assurance that 
the program provides for the maximum feasible coordina-
tion of transportation services assisted under this section 
with transportation services assisted by other Government 
sources. 
‘‘(7) MEAL
DELIVERY
FOR
HOMEBOUND
INDIVIDUALS.—A 
public transportation service provider that receives assistance 
under this section or section 5311(c) may coordinate and assist 
in regularly providing meal delivery service for homebound 
individuals, if the delivery service does not conflict with pro-
viding public transportation service or reduce service to public 
transportation passengers. 
‘‘(c) APPORTIONMENT AND TRANSFERS.— 
‘‘(1) FORMULA.—The Secretary shall apportion amounts 
made available to carry out this section as follows: 
‘‘(A) LARGE URBANIZED AREAS.—Sixty percent of the 
funds shall be apportioned among designated recipients 
for urbanized areas with a population of 200,000 or more 
individuals, as determined by the Bureau of the Census, 
in the ratio that— 
‘‘(i) the number of seniors and individuals with 
disabilities in each such urbanized area; bears to 
‘‘(ii) the number of seniors and individuals with 
disabilities in all such urbanized areas. 
‘‘(B) SMALL URBANIZED AREAS.—Twenty percent of the 
funds shall be apportioned among the States in the ratio 
that— 
‘‘(i) the number of seniors and individuals with 
disabilities in urbanized areas with a population of 
fewer than 200,000 individuals, as determined by the 
Bureau of the Census, in each State; bears to 
‘‘(ii) the number of seniors and individuals with 
disabilities in urbanized areas with a population of 
fewer than 200,000 individuals, as determined by the 
Bureau of the Census, in all States. 
‘‘(C) RURAL AREAS.—Twenty percent of the funds shall 
be apportioned among the States in the ratio that— 
‘‘(i) the number of seniors and individuals with 
disabilities in rural areas in each State; bears to 
‘‘(ii) the number of seniors and individuals with 
disabilities in rural areas in all States. 
‘‘(2) AREAS SERVED BY PROJECTS.— 
‘‘(A) IN GENERAL.—Except as provided in subparagraph 
(B)— 
‘‘(i) funds apportioned under paragraph (1)(A) shall 
be used for projects serving urbanized areas with a 
population of 200,000 or more individuals, as deter-
mined by the Bureau of the Census; 
‘‘(ii) funds apportioned under paragraph (1)(B) 
shall be used for projects serving urbanized areas with 
a population of fewer than 200,000 individuals, as 
determined by the Bureau of the Census; and 
‘‘(iii) funds apportioned under paragraph (1)(C) 
shall be used for projects serving rural areas.
H. R. 4348—274 
‘‘(B) EXCEPTIONS.—A State may use funds apportioned 
to the State under subparagraph (B) or (C) of paragraph 
(1)— 
‘‘(i) for a project serving an area other than an 
area specified in subparagraph (A)(ii) or (A)(iii), 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 area specified in subparagraph (A)(ii) or (A)(iii); 
or 
‘‘(ii) for a project anywhere in the State, if the 
State has established a statewide program for meeting 
the objectives of this section. 
‘‘(C) LIMITED TO ELIGIBLE PROJECTS.—Any funds trans-
ferred pursuant to subparagraph (B) shall be made avail-
able only for eligible projects selected under this section. 
‘‘(D) CONSULTATION.—A recipient may transfer an 
amount under subparagraph (B) only after consulting with 
responsible local officials, publicly owned operators of public 
transportation, and nonprofit providers in the area for 
which the amount was originally apportioned. 
‘‘(d) GOVERNMENT SHARE OF COSTS.— 
‘‘(1) CAPITAL PROJECTS.—A grant for a capital project under 
this section shall be in an amount equal to 80 percent of 
the net capital costs of the project, as determined by the Sec-
retary. 
‘‘(2) OPERATING ASSISTANCE.—A grant made under this sec-
tion for operating assistance may not exceed an amount equal 
to 50 percent of the net operating costs of the project, as 
determined by the Secretary. 
‘‘(3) REMAINDER OF NET COSTS.—The remainder of the net 
costs of a project carried out under this section— 
‘‘(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 or 
otherwise made available— 
‘‘(i) to a department or agency of the Government 
(other than the Department of Transportation) that 
are eligible to be expended for transportation; or 
‘‘(ii) to carry out the Federal lands highways pro-
gram under section 204 of title 23. 
‘‘(4) USE OF CERTAIN FUNDS.—For purposes of paragraph 
(3)(B)(i), the prohibition under section 403(a)(5)(C)(vii) of the 
Social Security Act (42 U.S.C. 603(a)(5)(C)(vii)) on the use of 
grant funds for matching requirements shall not apply to Fed-
eral or State funds to be used for transportation purposes. 
‘‘(e) GRANT REQUIREMENTS.— 
‘‘(1) IN GENERAL.—A grant under this section shall be sub-
ject to the same requirements as a grant under section 5307, 
to the extent the Secretary determines appropriate. 
‘‘(2) CERTIFICATION REQUIREMENTS.— 
‘‘(A) PROJECT SELECTION AND PLAN DEVELOPMENT.— 
Before receiving a grant under this section, each recipient 
shall certify that—
H. R. 4348—275 
‘‘(i) the projects selected by the recipient are 
included in a locally developed, coordinated public 
transit-human services transportation plan; 
‘‘(ii) the plan described in clause (i) was developed 
and approved through a process that included partici-
pation by seniors, individuals with disabilities, rep-
resentatives of public, private, and nonprofit transpor-
tation and human services providers, and other mem-
bers of the public; and 
‘‘(iii) to the maximum extent feasible, the services 
funded under this section will be coordinated with 
transportation services assisted by other Federal 
departments and agencies, including any transpor-
tation activities carried out by a recipient of a grant 
from the Department of Health and Human Services. 
‘‘(B) ALLOCATIONS TO SUBRECIPIENTS.—If a recipient 
allocates funds received under this section to subrecipients, 
the recipient shall certify that the funds are allocated on 
a fair and equitable basis. 
‘‘(f) COMPETITIVE PROCESS FOR GRANTS TO SUBRECIPIENTS.— 
‘‘(1) AREAWIDE SOLICITATIONS.—A recipient of funds appor-
tioned under subsection (c)(1)(A) may conduct, in cooperation 
with the appropriate metropolitan planning organization, an 
areawide solicitation for applications for grants under this sec-
tion. 
‘‘(2) STATEWIDE SOLICITATIONS.—A recipient of funds appor-
tioned under subparagraph (B) or (C) of subsection (c)(1) may 
conduct a statewide solicitation for applications for grants under 
this section. 
‘‘(3) APPLICATION.—If the recipient elects to engage in a 
competitive process, a recipient or subrecipient seeking to 
receive a grant from funds apportioned under subsection (c) 
shall submit to the recipient making the election an application 
in such form and in accordance with such requirements as 
the recipient making the election shall establish. 
‘‘(g) TRANSFERS OF FACILITIES AND EQUIPMENT.—A recipient 
may transfer a facility or equipment acquired using a grant under 
this section to any other recipient eligible to receive assistance 
under this chapter, if— 
‘‘(1) the recipient in possession of the facility or equipment 
consents to the transfer; and 
‘‘(2) the facility or equipment will continue to be used 
as required under this section. 
‘‘(h) PERFORMANCE MEASURES.— 
‘‘(1) IN GENERAL.—Not later than 1 year after the date 
of enactment of the Federal Public Transportation Act of 2012, 
the Secretary shall submit a report to the Committee on 
Banking, Housing, and Urban Affairs of the Senate and the 
Committee on Transportation and Infrastructure of the House 
of Representatives making recommendations on the establish-
ment of performance measures for grants under this section. 
Such report shall be developed in consultation with national 
nonprofit organizations that provide technical assistance and 
advocacy on issues related to transportation services for seniors 
and individuals with disabilities.
H. R. 4348—276 
‘‘(2) MEASURES.—The performance measures to be consid-
ered in the report under paragraph (1) shall require the collec-
tion of quantitative and qualitative information, as available, 
concerning— 
‘‘(A) modifications to the geographic coverage of 
transportation service, the quality of transportation service, 
or service times that increase the availability of transpor-
tation services for seniors and individuals with disabilities; 
‘‘(B) ridership; 
‘‘(C) accessibility improvements; and 
‘‘(D) other measures, as the Secretary determines is 
appropriate.’’. 
SEC. 20010. FORMULA GRANTS FOR RURAL AREAS. 
Section 5311 of title 49, United States Code, is amended to 
read as follows: 
‘‘§ 5311. Formula grants for rural areas 
‘‘(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 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.— 
‘‘(1) GRANTS
AUTHORIZED.—Except as provided by para-
graph (2), the Secretary may award grants under this section 
to recipients located in rural areas for— 
‘‘(A) planning, provided that a grant under this section 
for planning activities shall be in addition to funding 
awarded to a State under section 5305 for planning activi-
ties that are directed specifically at the needs of rural 
areas in the State; 
‘‘(B) public transportation capital projects; 
‘‘(C) operating costs of equipment and facilities for 
use in public transportation; 
‘‘(D) job access and reverse commute projects; and 
‘‘(E) the acquisition of public transportation services, 
including service agreements with private providers of 
public transportation service. 
‘‘(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). 
‘‘(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
H. R. 4348—277 
‘‘(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 rural areas. 
‘‘(B) GRANTS
AND
CONTRACTS.—In carrying out this 
paragraph, the Secretary may use not more than 2 percent 
of the amount made available under section 5338(a)(2)(E) 
to make grants and contracts for transportation research, 
technical assistance, training, and related support services 
in rural 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 competitively 
selected 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) vehicle revenue miles; and 
‘‘(G) ridership. 
‘‘(c) APPORTIONMENTS.— 
‘‘(1) PUBLIC TRANSPORTATION ON INDIAN RESERVATIONS.— 
Of the amounts made available or appropriated for each fiscal 
year pursuant to section 5338(a)(2)(E) to carry out this para-
graph, the following amounts shall be apportioned each fiscal 
year for grants to Indian tribes for any purpose eligible under 
this section, under such terms and conditions as may be estab-
lished by the Secretary: 
‘‘(A) $5,000,000 shall be distributed on a competitive 
basis by the Secretary. 
‘‘(B) $25,000,000 shall be apportioned as formula 
grants, as provided in subsection (j). 
‘‘(2) APPALACHIAN DEVELOPMENT PUBLIC TRANSPORTATION 
ASSISTANCE PROGRAM.— 
‘‘(A) DEFINITIONS.—In this paragraph— 
‘‘(i) the term ‘Appalachian region’ has the same 
meaning as in section 14102 of title 40; and 
‘‘(ii) the term ‘eligible recipient’ means a State 
that participates in a program established under sub-
title IV of title 40. 
‘‘(B) IN
GENERAL.—The Secretary shall carry out a 
public transportation assistance program in the Appa-
lachian region. 
‘‘(C) APPORTIONMENT.—Of amounts made available or 
appropriated for each fiscal year under section 5338(a)(2)(E) 
to carry out this paragraph, the Secretary shall apportion 
funds to eligible recipients for any purpose eligible under 
this section, based on the guidelines established under
H. R. 4348—278 
section 9.5(b) of the Appalachian Regional Commission 
Code. 
‘‘(D) SPECIAL
RULE.—An eligible recipient may use 
amounts that cannot be used for operating expenses under 
this paragraph for a highway project if— 
‘‘(i) that use is approved, in writing, by the eligible 
recipient after appropriate notice and an opportunity 
for comment and appeal are provided to affected public 
transportation providers; and 
‘‘(ii) the eligible recipient, in approving the use 
of amounts under this subparagraph, determines that 
the local transit needs are being addressed. 
‘‘(3) REMAINING AMOUNTS.— 
‘‘(A) IN
GENERAL.—The amounts made available or 
appropriated for each fiscal year pursuant to section 
5338(a)(2)(E) that are not apportioned under paragraph 
(1) or (2) shall be apportioned in accordance with this 
paragraph. 
‘‘(B) APPORTIONMENT BASED ON LAND AREA AND POPU-
LATION IN NONURBANIZED AREAS.— 
‘‘(i) IN
GENERAL.—83.15 percent of the amount 
described in subparagraph (A) shall be apportioned 
to the States in accordance with this subparagraph. 
‘‘(ii) LAND AREA.— 
‘‘(I) IN
GENERAL.—Subject to subclause (II), 
each State shall receive an amount that is equal 
to 20 percent of the amount apportioned under 
clause (i), multiplied by the ratio of the land area 
in rural areas in that State and divided by the 
land area in all rural areas in the United States, 
as shown by the most recent decennial census 
of population. 
‘‘(II) MAXIMUM
APPORTIONMENT.—No State 
shall receive more than 5 percent of the amount 
apportioned under subclause (I). 
‘‘(iii) POPULATION.—Each State shall receive an 
amount equal to 80 percent of the amount apportioned 
under clause (i), multiplied by the ratio of the popu-
lation of rural areas in that State and divided by 
the population of all rural areas in the United States, 
as shown by the most recent decennial census of popu-
lation. 
‘‘(C) APPORTIONMENT BASED ON LAND AREA, VEHICLE 
REVENUE
MILES, AND
LOW-INCOME
INDIVIDUALS
IN
NON-
URBANIZED AREAS.— 
‘‘(i) IN
GENERAL.—16.85 percent of the amount 
described in subparagraph (A) shall be apportioned 
to the States in accordance with this subparagraph. 
‘‘(ii) LAND AREA.—Subject to clause (v), each State 
shall receive an amount that is equal to 29.68 percent 
of the amount apportioned under clause (i), multiplied 
by the ratio of the land area in rural areas in that 
State and divided by the land area in all rural areas 
in the United States, as shown by the most recent 
decennial census of population. 
‘‘(iii) VEHICLE REVENUE MILES.—Subject to clause 
(v), each State shall receive an amount that is equal
H. R. 4348—279 
to 29.68 percent of the amount apportioned under 
clause (i), multiplied by the ratio of vehicle revenue 
miles in rural areas in that State and divided by the 
vehicle revenue miles in all rural areas in the United 
States, as determined by national transit database 
reporting. 
‘‘(iv) LOW-INCOME INDIVIDUALS.—Each State shall 
receive an amount that is equal to 40.64 percent of 
the amount apportioned under clause (i), multiplied 
by the ratio of low-income individuals in rural areas 
in that State and divided by the number of low-income 
individuals in all rural areas in the United States, 
as shown by the Bureau of the Census. 
‘‘(v) MAXIMUM
APPORTIONMENT.—No State shall 
receive— 
‘‘(I) more than 5 percent of the amount appor-
tioned under clause (ii); or 
‘‘(II) more than 5 percent of the amount appor-
tioned under clause (iii). 
‘‘(d) USE FOR LOCAL TRANSPORTATION SERVICE.—A State may 
use an amount apportioned under this section for a project included 
in a program under subsection (b) of this section and eligible for 
assistance under this chapter if the project will provide local 
transportation service, as defined by the Secretary of Transpor-
tation, in a rural area. 
‘‘(e) USE
FOR ADMINISTRATION, PLANNING, AND TECHNICAL 
ASSISTANCE.—The Secretary may allow a State to use not more 
than 10 percent of the amount apportioned under this section 
to administer this section and provide technical assistance to a 
subrecipient, including project planning, program and management 
development, coordination of public transportation programs, and 
research the State considers appropriate to promote effective 
delivery of public transportation to a rural area. 
‘‘(f) INTERCITY BUS TRANSPORTATION.— 
‘‘(1) IN GENERAL.—A State shall expend at least 15 percent 
of the amount made available in each fiscal year to carry 
out a program to develop and support intercity bus transpor-
tation. Eligible activities under the program include— 
‘‘(A) planning and marketing for intercity bus transpor-
tation; 
‘‘(B) capital grants for intercity bus facilities; 
‘‘(C) joint-use facilities; 
‘‘(D) operating grants through purchase-of-service 
agreements, 
user-side 
subsidies, 
and 
demonstration 
projects; and 
‘‘(E) coordinating rural connections between small 
public transportation operations and intercity bus carriers. 
‘‘(2) CERTIFICATION.—A State does not have to comply with 
paragraph (1) of this subsection in a fiscal year in which the 
Governor of the State certifies to the Secretary, after consulta-
tion with affected intercity bus service providers, that the inter-
city bus service needs of the State are being met adequately. 
‘‘(g) GOVERNMENT SHARE OF COSTS.— 
‘‘(1) CAPITAL PROJECTS.— 
‘‘(A) IN GENERAL.—Except as provided by subparagraph 
(B), a grant awarded under this section for a capital project 
or project administrative expenses shall be for 80 percent
H. R. 4348—280 
of the net costs of the project, as determined by the Sec-
retary. 
‘‘(B) EXCEPTION.—A State described in section 120(b) 
of title 23 shall receive a Government share of the net 
costs in accordance with the formula under that section. 
‘‘(2) OPERATING ASSISTANCE.— 
‘‘(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; 
‘‘(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; and 
‘‘(D) in the case of an intercity bus project that includes 
both feeder service and an unsubsidized segment of inter-
city bus service to which the feeder service connects, may 
be derived from the costs of a private operator for the 
unsubsidized segment of intercity bus service as an in- 
kind match for the operating costs of connecting rural 
intercity bus feeder service funded under subsection (f), 
if the private operator agrees in writing to the use of 
the costs of the private operator for the unsubsidized seg-
ment of intercity bus service as an in-kind match. 
‘‘(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. 
‘‘(h) TRANSFER OF FACILITIES AND EQUIPMENT.—With the con-
sent of the recipient currently having a facility or equipment 
acquired with assistance under this section, a State may transfer 
the facility or equipment to any recipient eligible to receive assist-
ance under this chapter if the facility or equipment will continue 
to be used as required under this section. 
‘‘(i) RELATIONSHIP TO OTHER LAWS.—
H. R. 4348—281 
‘‘(1) IN GENERAL.—Section 5333(b) applies to this section 
if the Secretary of Labor utilizes a special warranty that pro-
vides a fair and equitable arrangement to protect the interests 
of employees. 
‘‘(2) RULE
OF
CONSTRUCTION.—This subsection does not 
affect or discharge a responsibility of the Secretary of Transpor-
tation under a law of the United States. 
‘‘(j) FORMULA GRANTS FOR PUBLIC TRANSPORTATION ON INDIAN 
RESERVATIONS.— 
‘‘(1) APPORTIONMENT.— 
‘‘(A) IN GENERAL.—Of the amounts described in sub-
section (c)(1)(B)— 
‘‘(i) 50 percent of the total amount shall be appor-
tioned so that each Indian tribe providing public 
transportation service shall receive an amount equal 
to the total amount apportioned under this clause 
multiplied by the ratio of the number of vehicle revenue 
miles provided by an Indian tribe divided by the total 
number of vehicle revenue miles provided by all Indian 
tribes, as reported to the Secretary; 
‘‘(ii) 25 percent of the total amount shall be appor-
tioned equally among each Indian tribe providing at 
least 200,000 vehicle revenue miles of public transpor-
tation service annually, as reported to the Secretary; 
and 
‘‘(iii) 25 percent of the total amount shall be appor-
tioned among each Indian tribe providing public 
transportation on tribal lands (as defined by the 
Bureau of the Census) on which more than 1,000 low- 
income individuals reside (as determined by the 
Bureau of the Census) so that each Indian tribe shall 
receive an amount equal to the total amount appor-
tioned under this clause multiplied by the ratio of 
the number of low-income individuals residing on an 
Indian tribe’s lands divided by the total number of 
low-income individuals on tribal lands on which more 
than 1,000 low-income individuals reside. 
‘‘(B) LIMITATION.—No recipient shall receive more than 
$300,000 of the amounts apportioned under subparagraph 
(A)(iii) in a fiscal year. 
‘‘(C) REMAINING
AMOUNTS.—Of the amounts made 
available under subparagraph (A)(iii), any amounts not 
apportioned under that subparagraph shall be allocated 
among Indian tribes receiving less than $300,000 in a 
fiscal year according to the formula specified in that clause. 
‘‘(D) 
LOW-INCOME
INDIVIDUALS.—For 
purposes 
of 
subparagraph (A)(iii), the term ‘low-income individual’ 
means an individual whose family income is at or below 
100 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. 
‘‘(2) NON-TRIBAL SERVICE PROVIDERS.—A recipient that is 
an Indian tribe may use funds apportioned under this sub-
section to finance public transportation services provided by 
a non-tribal provider of public transportation that connects 
residents of tribal lands with surrounding communities,
H. R. 4348—282 
improves access to employment or healthcare, or otherwise 
addresses the mobility needs of tribal members.’’. 
SEC. 
20011. 
RESEARCH, 
DEVELOPMENT, 
DEMONSTRATION, 
AND 
DEPLOYMENT PROJECTS. 
Section 5312 of title 49, United States Code, is amended to 
read as follows: 
‘‘§ 5312. Research, development, demonstration, and deploy-
ment projects 
‘‘(a) RESEARCH, DEVELOPMENT, DEMONSTRATION, AND DEPLOY-
MENT PROJECTS.— 
‘‘(1) IN GENERAL.—The Secretary may make grants and 
enter into contracts, cooperative agreements, and other agree-
ments for research, development, demonstration, and deploy-
ment projects, and evaluation of research and technology of 
national significance to public transportation, that the Sec-
retary determines will improve public transportation. 
‘‘(2) AGREEMENTS.—In order to carry out paragraph (1), 
the Secretary may make grants to and enter into contracts, 
cooperative agreements, and other agreements with— 
‘‘(A) departments, agencies, and instrumentalities of 
the Government, including Federal laboratories; 
‘‘(B) State and local governmental entities; 
‘‘(C) providers of public transportation; 
‘‘(D) private or non-profit organizations; 
‘‘(E) institutions of higher education; and 
‘‘(F) technical and community colleges. 
‘‘(3) APPLICATION.— 
‘‘(A) IN
GENERAL.—To receive a grant, contract, 
cooperative agreement, or other agreement under this sec-
tion, an entity described in paragraph (2) shall submit 
an application to the Secretary. 
‘‘(B) FORM
AND
CONTENTS.—An application under 
subparagraph (A) shall be in such form and contain such 
information as the Secretary may require, including— 
‘‘(i) a statement of purpose detailing the need being 
addressed; 
‘‘(ii) the short- and long-term goals of the project, 
including opportunities for future innovation and 
development, the potential for deployment, and bene-
fits to riders and public transportation; and 
‘‘(iii) the short- and long-term funding require-
ments to complete the project and any future objectives 
of the project. 
‘‘(b) RESEARCH.— 
‘‘(1) IN GENERAL.—The Secretary may make a grant to 
or enter into a contract, cooperative agreement, or other agree-
ment under this section with an entity described in subsection 
(a)(2) to carry out a public transportation research project that 
has as its ultimate goal the development and deployment of 
new and innovative ideas, practices, and approaches. 
‘‘(2) PROJECT ELIGIBILITY.—A public transportation research 
project that receives assistance under paragraph (1) shall focus 
on— 
‘‘(A) providing more effective and efficient public 
transportation service, including services to—
H. R. 4348—283 
‘‘(i) seniors; 
‘‘(ii) individuals with disabilities; and 
‘‘(iii) low-income individuals; 
‘‘(B) mobility management and improvements and 
travel management systems; 
‘‘(C) data and communication system advancements; 
‘‘(D) system capacity, including— 
‘‘(i) train control; 
‘‘(ii) capacity improvements; and 
‘‘(iii) performance management; 
‘‘(E) capital and operating efficiencies; 
‘‘(F) planning and forecasting modeling and simulation; 
‘‘(G) advanced vehicle design; 
‘‘(H) advancements in vehicle technology; 
‘‘(I) asset maintenance and repair systems advance-
ment; 
‘‘(J) construction and project management; 
‘‘(K) alternative fuels; 
‘‘(L) the environment and energy efficiency; 
‘‘(M) safety improvements; or 
‘‘(N) any other area that the Secretary determines is 
important to advance the interests of public transportation. 
‘‘(c) INNOVATION AND DEVELOPMENT.— 
‘‘(1) IN GENERAL.—The Secretary may make a grant to 
or enter into a contract, cooperative agreement, or other agree-
ment under this section with an entity described in subsection 
(a)(2) to carry out a public transportation innovation and 
development project that seeks to improve public transportation 
systems nationwide in order to provide more efficient and effec-
tive delivery of public transportation services, including through 
technology and technological capacity improvements. 
‘‘(2) PROJECT ELIGIBILITY.—A public transportation innova-
tion and development project that receives assistance under 
paragraph (1) shall focus on— 
‘‘(A) the development of public transportation research 
projects that received assistance under subsection (b) that 
the Secretary determines were successful; 
‘‘(B) planning and forecasting modeling and simulation; 
‘‘(C) capital and operating efficiencies; 
‘‘(D) advanced vehicle design; 
‘‘(E) advancements in vehicle technology; 
‘‘(F) the environment and energy efficiency; 
‘‘(G) system capacity, including train control and 
capacity improvements; or 
‘‘(H) any other area that the Secretary determines 
is important to advance the interests of public transpor-
tation. 
‘‘(d) DEMONSTRATION, DEPLOYMENT, AND EVALUATION.— 
‘‘(1) IN GENERAL.—The Secretary may, under terms and 
conditions that the Secretary prescribes, make a grant to or 
enter into a contract, cooperative agreement, or other agree-
ment with an entity described in paragraph (2) to promote 
the early deployment and demonstration of innovation in public 
transportation that has broad applicability. 
‘‘(2) PARTICIPANTS.—An entity described in this paragraph 
is— 
‘‘(A) an entity described in subsection (a)(2); or
H. R. 4348—284 
‘‘(B) a consortium of entities described in subsection 
(a)(2), including a provider of public transportation, that 
will share the costs, risks, and rewards of early deployment 
and demonstration of innovation. 
‘‘(3) PROJECT ELIGIBILITY.—A project that receives assist-
ance under paragraph (1) shall seek to build on successful 
research, innovation, and development efforts to facilitate— 
‘‘(A) the deployment of research and technology 
development resulting from private efforts or Federally 
funded efforts; and 
‘‘(B) the implementation of research and technology 
development to advance the interests of public transpor-
tation. 
‘‘(4) EVALUATION.—Not later than 2 years after the date 
on which a project receives assistance under paragraph (1), 
the Secretary shall conduct a comprehensive evaluation of the 
success or failure of the projects funded under this subsection 
and any plan for broad-based implementation of the innovation 
promoted by successful projects. 
‘‘(5) LOW OR NO EMISSION VEHICLE DEPLOYMENT.— 
‘‘(A) DEFINITIONS.—In this paragraph, the following 
definitions shall apply: 
‘‘(i) ELIGIBLE AREA.—The term ‘eligible area’ means 
an area that is— 
‘‘(I) designated as a nonattainment area for 
ozone or carbon monoxide under section 107(d) 
of the Clean Air Act (42 U.S.C. 7407(d)); or 
‘‘(II) a maintenance area, as defined in section 
5303, for ozone or carbon monoxide. 
‘‘(ii) ELIGIBLE PROJECT.—The term ‘eligible project’ 
means a project or program of projects in an eligible 
area for— 
‘‘(I) acquiring or leasing low or no emission 
vehicles; 
‘‘(II) constructing or leasing facilities and 
related equipment for low or no emission vehicles; 
‘‘(III) constructing new public transportation 
facilities to accommodate low or no emission 
vehicles; or 
‘‘(IV) rehabilitating or improving existing 
public transportation facilities to accommodate low 
or no emission vehicles. 
‘‘(iii) DIRECT CARBON EMISSIONS.—The term ‘direct 
carbon emissions’ means the quantity of direct green-
house gas emissions from a vehicle, as determined 
by the Administrator of the Environmental Protection 
Agency. 
‘‘(iv) LOW OR NO EMISSION BUS.—The term ‘low 
or no emission bus’ means a bus that is a low or 
no emission vehicle. 
‘‘(v) LOW OR NO EMISSION VEHICLE.—The term ‘low 
or no emission vehicle’ means— 
‘‘(I) a passenger vehicle used to provide public 
transportation that the Administrator of the 
Environmental Protection Agency has certified 
sufficiently reduces energy consumption or reduces
H. R. 4348—285 
harmful emissions, including direct carbon emis-
sions, when compared to a comparable standard 
vehicle; or 
‘‘(II) a zero emission bus used to provide public 
transportation. 
‘‘(vi) RECIPIENT.—The term ‘recipient’ means— 
‘‘(I) for an eligible area that is an urbanized 
area with a population of fewer than 200,000 
individuals, as determined by the Bureau of the 
Census, the State in which the eligible area is 
located; and 
‘‘(II) for an eligible area not described in 
subparagraph (A), the designated recipient for the 
eligible area. 
‘‘(vii) ZERO EMISSION BUS.—The term ‘zero emission 
bus’ means a low or no emission bus that produces 
no carbon or particulate matter. 
‘‘(B) AUTHORITY.—The Secretary may make grants to 
recipients to finance eligible projects under this paragraph. 
‘‘(C) GRANT REQUIREMENTS.— 
‘‘(i) IN GENERAL.—A grant under this paragraph 
shall be subject to the requirements of section 5307. 
‘‘(ii) GOVERNMENT SHARE OF COSTS FOR CERTAIN 
PROJECTS.—Section 5323(j) applies to projects carried 
out under this paragraph, unless the grant recipient 
requests a lower grant percentage. 
‘‘(iii) COMBINATION OF FUNDING SOURCES.— 
‘‘(I) COMBINATION PERMITTED.—A project car-
ried out under this paragraph may receive funding 
under section 5307, or any other provision of law. 
‘‘(II) GOVERNMENT
SHARE.—Nothing in this 
clause may be construed to alter the Government 
share required under this section, section 5307, 
or any other provision of law. 
‘‘(D) MINIMUM AMOUNTS.—Of amounts made available 
by or appropriated under section 5338(b) in each fiscal 
year to carry out this paragraph— 
‘‘(i) not less than 65 percent shall be made avail-
able to fund eligible projects relating to low or no 
emission buses; and 
‘‘(ii) not less than 10 percent shall be made avail-
able for eligible projects relating to facilities and 
related equipment for low or no emission buses. 
‘‘(E) COMPETITIVE PROCESS.—The Secretary shall solicit 
grant applications and make grants for eligible projects 
on a competitive basis. 
‘‘(F) PRIORITY
CONSIDERATION.—In making grants 
under this paragraph, the Secretary shall give priority 
to projects relating to low or no emission buses that make 
greater reductions in energy consumption and harmful 
emissions, including direct carbon emissions, than com-
parable standard buses or other low or no emission buses. 
‘‘(G) AVAILABILITY
OF
FUNDS.—Any amounts made 
available or appropriated to carry out this paragraph— 
‘‘(i) shall remain available to an eligible project 
for 2 years after the fiscal year for which the amount 
is made available or appropriated; and
H. R. 4348—286 
‘‘(ii) that remain unobligated at the end of the 
period described in clause (i) shall be added to the 
amount made available to an eligible project in the 
following fiscal year. 
‘‘(e) ANNUAL REPORT ON RESEARCH.—Not later than the first 
Monday in February of each year, the Secretary shall submit to 
the Committee on Banking, Housing, and Urban Affairs and the 
Committee on Appropriations of the Senate and the Committee 
on Transportation and Infrastructure, the Committee on Science, 
Space, and Technology, and the Committee on Appropriations of 
the House of Representatives a report that includes— 
‘‘(1) a description of each project that received assistance 
under this section during the preceding fiscal year; 
‘‘(2) an evaluation of each project described in paragraph 
(1), including any evaluation conducted under subsection (d)(4) 
for the preceding fiscal year; and 
‘‘(3) a proposal for allocations of amounts for assistance 
under this section for the subsequent fiscal year. 
‘‘(f) GOVERNMENT SHARE OF COSTS.— 
‘‘(1) IN GENERAL.—The Government share of the cost of 
a project carried out under this section shall not exceed 80 
percent. 
‘‘(2) NON-GOVERNMENT SHARE.—The non-Government share 
of the cost of a project carried out under this section may 
be derived from in-kind contributions. 
‘‘(3) FINANCIAL BENEFIT.—If the Secretary determines that 
there would be a clear and direct financial benefit to an entity 
under a grant, contract, cooperative agreement, or other agree-
ment under this section, the Secretary shall establish a Govern-
ment share of the costs of the project to be carried out under 
the grant, contract, cooperative agreement, or other agreement 
that is consistent with the benefit.’’. 
SEC. 20012. TECHNICAL ASSISTANCE AND STANDARDS DEVELOPMENT. 
Section 5314 of title 49, United States Code, is amended to 
read as follows: 
‘‘§ 5314. Technical assistance and standards development 
‘‘(a) TECHNICAL ASSISTANCE AND STANDARDS DEVELOPMENT.— 
‘‘(1) IN GENERAL.—The Secretary may make grants and 
enter into contracts, cooperative agreements, and other agree-
ments (including agreements with departments, agencies, and 
instrumentalities of the Government) to carry out activities 
that the Secretary determines will assist recipients of assistance 
under this chapter to— 
‘‘(A) more effectively and efficiently provide public 
transportation service; 
‘‘(B) administer funds received under this chapter in 
compliance with Federal law; and 
‘‘(C) improve public transportation. 
‘‘(2) ELIGIBLE ACTIVITIES.—The activities carried out under 
paragraph (1) may include— 
‘‘(A) technical assistance; and 
‘‘(B) the development of voluntary and consensus-based 
standards and best practices by the public transportation 
industry, including standards and best practices for safety,
H. R. 4348—287 
fare collection, Intelligent Transportation Systems, accessi-
bility, procurement, security, asset management to main-
tain a state of good repair, operations, maintenance, vehicle 
propulsion, communications, and vehicle electronics. 
‘‘(b) 
TECHNICAL
ASSISTANCE.—The 
Secretary, 
through 
a 
competitive bid process, may enter into contracts, cooperative agree-
ments, and other agreements with national nonprofit organizations 
that have the appropriate demonstrated capacity to provide public 
transportation-related technical assistance under this section. The 
Secretary may enter into such contracts, cooperative agreements, 
and other agreements to assist providers of public transportation 
to— 
‘‘(1) comply with the Americans with Disabilities Act of 
1990 (42 U.S.C. 12101 et seq.) through technical assistance, 
demonstration programs, research, public education, and other 
activities related to complying with such Act; 
‘‘(2) comply with human services transportation coordina-
tion requirements and to enhance the coordination of Federal 
resources for human services transportation with those of the 
Department of Transportation through technical assistance, 
training, and support services related to complying with such 
requirements; 
‘‘(3) meet the transportation needs of elderly individuals; 
‘‘(4) increase transit ridership in coordination with metro-
politan planning organizations and other entities through 
development around public transportation stations through 
technical assistance and the development of tools, guidance, 
and analysis related to market-based development around 
transit stations; 
‘‘(5) address transportation equity with regard to the effect 
that transportation planning, investment and operations have 
for low-income and minority individuals; and 
‘‘(6) any other technical assistance activity that the Sec-
retary determines is necessary to advance the interests of public 
transportation. 
‘‘(c) ANNUAL REPORT
ON TECHNICAL ASSISTANCE.—Not later 
than the first Monday in February of each year, the Secretary 
shall submit to the Committee on Banking, Housing, and Urban 
Affairs and the Committee on Appropriations of the Senate and 
the Committee on Transportation and Infrastructure, the Com-
mittee on Science, Space, and Technology, and the Committee on 
Appropriations of the House of Representatives a report that 
includes— 
‘‘(1) a description of each project that received assistance 
under this section during the preceding fiscal year; 
‘‘(2) an evaluation of the activities carried out by each 
organization that received assistance under this section during 
the preceding fiscal year; and 
‘‘(3) a proposal for allocations of amounts for assistance 
under this section for the subsequent fiscal year. 
‘‘(d) GOVERNMENT SHARE OF COSTS.— 
‘‘(1) IN GENERAL.—The Government share of the cost of 
an activity carried out using a grant under this section may 
not exceed 80 percent. 
‘‘(2) NON-GOVERNMENT SHARE.—The non-Government share 
of the cost of an activity carried out using a grant under 
this section may be derived from in-kind contributions.’’.
H. R. 4348—288 
SEC. 20013. PRIVATE SECTOR PARTICIPATION. 
(a) IN GENERAL.—Section 5315 of title 49, United States Code, 
is amended to read as follows: 
‘‘§ 5315. Private sector participation 
‘‘(a) GENERAL PURPOSES.—In the interest of fulfilling the gen-
eral purposes of this chapter under section 5301(b), the Secretary 
shall— 
‘‘(1) better coordinate public and private sector-provided 
public transportation services; 
‘‘(2) promote more effective utilization of private sector 
expertise, financing, and operational capacity to deliver costly 
and complex new fixed guideway capital projects; and 
‘‘(3) promote transparency and public understanding of 
public-private partnerships affecting public transportation. 
‘‘(b) ACTIONS
TO PROMOTE BETTER COORDINATION BETWEEN 
PUBLIC
AND PRIVATE SECTOR PROVIDERS
OF PUBLIC TRANSPOR-
TATION.—The Secretary shall— 
‘‘(1) provide technical assistance to recipients of Federal 
transit grant assistance, at the request of a recipient, on prac-
tices and methods to best utilize private providers of public 
transportation; and 
‘‘(2) educate recipients of Federal transit grant assistance 
on laws and regulations under this chapter that impact private 
providers of public transportation. 
‘‘(c) ACTIONS TO PROVIDE TECHNICAL ASSISTANCE FOR ALTER-
NATIVE PROJECT DELIVERY METHODS.—Upon request by a sponsor 
of a new fixed guideway capital project, the Secretary shall— 
‘‘(1) identify best practices for public-private partnerships 
models in the United States and in other countries; 
‘‘(2) develop standard public-private partnership trans-
action model contracts; and 
‘‘(3) perform financial assessments that include the calcula-
tion of public and private benefits of a proposed public-private 
partnership transaction.’’. 
(b) 
PUBLIC-PRIVATE
PARTNERSHIP
PROCEDURES
AND 
APPROACHES.— 
(1) IDENTIFY IMPEDIMENTS.—The Secretary shall— 
(A) except as provided in paragraph (6), identify any 
provisions of chapter 53 of title 49, United States Code, 
and any regulations or practices thereunder, that impede 
greater use of public-private partnerships and private 
investment in public transportation capital projects; and 
(B) develop and implement on a project basis proce-
dures and approaches that— 
(i) address such impediments in a manner similar 
to the Special Experimental Project Number 15 of the 
Federal Highway Administration (commonly referred 
to as ‘‘SEP-15’’); and 
(ii) protect the public interest and any public 
investment in public transportation capital projects 
that involve public-private partnerships or private 
investment in public transportation capital projects. 
(2) TRANSPARENCY.—The Secretary shall develop guidance 
to promote greater transparency and public access to public- 
private partnership agreements involving recipients of Federal