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baseline conditions for the performance 
measures identified in subsection (h)(2); 
‘‘(iv) may include a scenario that im-
proves the baseline conditions for as many 
of the performance measures under sub-
section (h)(2) as possible; 
‘‘(v) shall be revenue constrained based 
on the total revenues expected to be avail-
able over the forecast period of the plan; 
and 
‘‘(vi) may include estimated costs and 
potential revenues available to support each 
scenario. 
‘‘(C) METRICS.—In addition to the per-
formance measures identified in subsection 
(h)(2), scenarios developed under this paragraph 
may be evaluated using locally developed metrics 
for the following categories: 
‘‘(i) Congestion and mobility, includ-
ing transportation use by mode. 
‘‘(ii) Freight movement. 
‘‘(iii) Safety. 
‘‘(iv) Efficiency and costs to taxpayers. 
‘‘(4) FINANCIAL
PLAN.—A financial plan re-
ferred to in paragraph (2)(C)(vii) shall—
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‘‘(A) be prepared by each metropolitan 
planning organization to support the metropoli-
tan transportation plan; and 
‘‘(B) contain a description of the following: 
‘‘(i) Projected resource requirements for 
implementing projects, strategies, and serv-
ices recommended in the metropolitan 
transportation plan, including existing and 
projected system operating and mainte-
nance needs, proposed enhancement and ex-
pansions to the system, projected available 
revenue from Federal, State, local, and pri-
vate sources, and innovative financing tech-
niques to finance projects and programs. 
‘‘(ii) The projected difference between 
costs and revenues, and strategies for secur-
ing additional new revenue (such as by cap-
ture of some of the economic value created 
by any new investment). 
‘‘(iii) Estimates of future funds, to be 
developed cooperatively by the metropolitan 
planning organization, any public trans-
portation agency, and the State, that are 
reasonably expected to be available to sup-
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† HR 4348 EAS 
port the investment priorities recommended 
in the metropolitan transportation plan. 
‘‘(iv) Each applicable project only if 
full funding can reasonably be anticipated 
to be available for the project within the 
time period contemplated for completion of 
the project. 
‘‘(5) COORDINATION WITH CLEAN AIR ACT AGEN-
CIES.—The metropolitan planning organization for 
any metropolitan area that is a nonattainment area 
or maintenance area shall coordinate the development 
of a transportation plan with the process for develop-
ment of the transportation control measures of the 
State implementation plan required by the Clean Air 
Act (42 U.S.C. 7401 et seq.). 
‘‘(6) PUBLICATION.—On approval by the rel-
evant metropolitan planning organization, a metro-
politan transportation plan involving Federal par-
ticipation shall be, at such times and in such manner 
as the Secretary shall require— 
‘‘(A) published or otherwise made readily 
available by the metropolitan planning organiza-
tion for public review, including (to the max-
imum extent practicable) in electronically acces-
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† HR 4348 EAS 
sible formats and means, such as the Internet; 
and 
‘‘(B) submitted for informational purposes 
to the applicable Governor. 
‘‘(7) CONSULTATION.— 
‘‘(A) IN GENERAL.—In each metropolitan 
area, the metropolitan planning organization 
shall consult, as appropriate, with Federal, 
State, tribal, and local agencies responsible for 
land use management, natural resources, envi-
ronmental protection, conservation, and historic 
preservation concerning the development of a 
metropolitan transportation plan. 
‘‘(B) ISSUES.—The consultation under sub-
paragraph (A) shall involve, as available, consid-
eration of— 
‘‘(i) metropolitan transportation plans 
with Federal, State, tribal, and local con-
servation plans or maps; and 
‘‘(ii) inventories of natural or historic 
resources. 
‘‘(8) SELECTION
OF
PROJECTS
FROM
ILLUS-
TRATIVE
LIST.—Notwithstanding paragraph (4), a 
State or metropolitan planning organization shall not 
be required to select any project from the illustrative
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† HR 4348 EAS 
list of additional projects included in the metropoli-
tan transportation plan under paragraph (2)(C)(ix). 
‘‘(j) TRANSPORTATION IMPROVEMENT PROGRAM.— 
‘‘(1) DEVELOPMENT.— 
‘‘(A) IN GENERAL.—In cooperation with the 
applicable State and any affected public trans-
portation operator, the metropolitan planning 
organization designated for a metropolitan area 
shall develop a transportation improvement pro-
gram 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, will make sig-
nificant progress toward achieving the per-
formance targets established under sub-
section (h)(2). 
‘‘(B) OPPORTUNITY FOR PARTICIPATION.— 
In developing the transportation improvement 
program, the metropolitan planning organiza-
tion, in cooperation with the State and any af-
fected public transportation operator, shall pro-
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† HR 4348 EAS 
vide an opportunity for participation by inter-
ested parties, in accordance with subsection 
(h)(4). 
‘‘(C) 
UPDATING
AND
APPROVAL.—The 
transportation improvement program shall be— 
‘‘(i) updated not less frequently than 
once every 4 years, on a cycle compatible 
with the development of the relevant state-
wide transportation improvement program 
under section 5304; and 
‘‘(ii) approved by the applicable Gov-
ernor. 
‘‘(2) CONTENTS.— 
‘‘(A) PRIORITY
LIST.—The transportation 
improvement program shall include a priority 
list of proposed federally supported projects and 
strategies to be carried out during the 4-year pe-
riod beginning on the date of adoption of the 
transportation improvement program, and each 
4-year period thereafter, using existing and rea-
sonably available revenues in accordance with 
the financial plan under paragraph (3). 
‘‘(B) DESCRIPTIONS.—Each project de-
scribed in the transportation improvement pro-
gram shall include sufficient descriptive material
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(such as type of work, termini, length, and other 
similar factors) to identify the project or phase 
of the project and the effect that the project or 
project phase will have in addressing the targets 
described in subsection (h)(2). 
‘‘(C) 
PERFORMANCE
TARGET
ACHIEVE-
MENT.—The transportation improvement pro-
gram shall include, to the maximum extent prac-
ticable, a description of the anticipated effect of 
the transportation improvement program on at-
tainment of the performance targets established 
in the metropolitan transportation plan, linking 
investment priorities to those performance tar-
gets. 
‘‘(D) ILLUSTRATIVE LIST OF PROJECTS.—In 
developing a transportation improvement pro-
gram, an optional illustrative list of projects 
may be prepared containing additional invest-
ment priorities that— 
‘‘(i) are not included in the transpor-
tation improvement program; but 
‘‘(ii) would be so included if resources 
in addition to the resources identified in the 
financial plan under paragraph (3) were 
available.
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‘‘(3) FINANCIAL
PLAN.—A financial plan re-
ferred to in paragraph (2)(D)(ii) shall— 
‘‘(A) be prepared by each metropolitan 
planning organization to support the transpor-
tation improvement program; and 
‘‘(B) contain a description of the following: 
‘‘(i) Projected resource requirements for 
implementing projects, strategies, and serv-
ices recommended in the transportation im-
provement program, including existing and 
projected system operating and mainte-
nance needs, proposed enhancement and ex-
pansions to the system, projected available 
revenue from Federal, State, local, and pri-
vate sources, and innovative financing tech-
niques to finance projects and programs. 
‘‘(ii) The projected difference between 
costs and revenues, and strategies for secur-
ing additional new revenue (such as by cap-
ture of some of the economic value created 
by any new investment). 
‘‘(iii) Estimates of future funds, to be 
developed cooperatively by the metropolitan 
planning organization, any public trans-
portation agency, and the State, that are
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† HR 4348 EAS 
reasonably expected to be available to sup-
port the investment priorities recommended 
in the transportation improvement pro-
gram. 
‘‘(iv) Each applicable project, only if 
full funding can reasonably be anticipated 
to be available for the project within the 
time period contemplated for completion of 
the project. 
‘‘(4) INCLUDED PROJECTS.— 
‘‘(A) PROJECTS UNDER THIS CHAPTER AND 
TITLE 23.—A transportation improvement pro-
gram developed under this subsection for a met-
ropolitan area shall include a description of the 
projects within the area that are proposed for 
funding under this chapter and chapter 1 of title 
23. 
‘‘(B) PROJECTS UNDER CHAPTER 2.— 
‘‘(i) REGIONALLY SIGNIFICANT.—Each 
regionally significant project proposed for 
funding under chapter 2 of title 23 shall be 
identified individually in the transpor-
tation improvement program. 
‘‘(ii) NONREGIONALLY SIGNIFICANT.— 
A description of each project proposed for
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† HR 4348 EAS 
funding under chapter 2 of title 23 that is 
not determined to be regionally significant 
shall be contained in 1 line item or identi-
fied individually in the transportation im-
provement program. 
‘‘(5) OPPORTUNITY FOR PARTICIPATION.—Before 
approving a transportation improvement program, a 
metropolitan planning organization, in cooperation 
with the State and any affected public transportation 
operator, shall provide an opportunity for participa-
tion by interested parties in the development of the 
transportation improvement program, in accordance 
with subsection (h)(4). 
‘‘(6) SELECTION OF PROJECTS.— 
‘‘(A) IN GENERAL.—Each tier I MPO and 
tier II MPO shall select projects carried out 
within the boundaries of the applicable metro-
politan planning area from the transportation 
improvement program, in consultation with the 
relevant State and on concurrence of the affected 
facility owner, for funds apportioned to the State 
under section 104(b)(2) of title 23 and suballo-
cated to the metropolitan planning area under 
section 133(d) of title 23.
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‘‘(B) PROJECTS
UNDER
CHAPTER
53.—In 
the case of projects under this chapter, the selec-
tion of federally funded projects in metropolitan 
areas shall be carried out, from the approved 
transportation improvement program, by the 
designated recipients of public transportation 
funding in cooperation with the metropolitan 
planning organization. 
‘‘(C) CONGESTION
MITIGATION
AND
AIR 
QUALITY PROJECTS.—Each tier I MPO shall se-
lect projects carried out within the boundaries of 
the applicable metropolitan planning area from 
the transportation improvement program, in 
consultation with the relevant State and on con-
currence of the affected facility owner, for funds 
apportioned to the State under section 104(b)(4) 
of title 23 and suballocated to the metropolitan 
planning area under section 149(j) of title 23. 
‘‘(D) MODIFICATIONS
TO
PROJECT
PRI-
ORITY.—Notwithstanding any other provision of 
law, approval by the Secretary shall not be re-
quired to carry out a project included in a 
transportation improvement program in place of 
another project in the transportation improve-
ment program.
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† HR 4348 EAS 
‘‘(7) PUBLICATION.— 
‘‘(A) IN GENERAL.—A transportation im-
provement program shall be published or other-
wise made readily available by the applicable 
metropolitan planning organization for public 
review in electronically accessible formats and 
means, such as the Internet. 
‘‘(B) ANNUAL LIST OF PROJECTS.—An an-
nual list of projects, including investments in pe-
destrian walkways, bicycle transportation facili-
ties, and intermodal facilities that support inter-
city transportation, for which Federal funds 
have been obligated during the preceding fiscal 
year shall be published or otherwise made avail-
able by the cooperative effort of the State, public 
transportation operator, and metropolitan plan-
ning organization in electronically accessible for-
mats and means, such as the Internet, in a man-
ner that is consistent with the categories identi-
fied in the relevant transportation improvement 
program. 
‘‘(k) PLANNING REQUIREMENTS FOR TIER II MPOS.— 
‘‘(1) IN GENERAL.—The Secretary may provide 
for the performance-based development of a metropoli-
tan transportation plan and transportation improve-
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† HR 4348 EAS 
ment program for the metropolitan planning area of 
a tier II MPO, as the Secretary determines to be ap-
propriate, taking into account— 
‘‘(A) the complexity of transportation needs 
in the area; and 
‘‘(B) the technical capacity of the metropoli-
tan planning organization. 
‘‘(2) 
EVALUATION
OF
PERFORMANCE-BASED 
PLANNING.—In reviewing a tier II MPO under sub-
section (m), the Secretary shall take into consider-
ation the effectiveness of the tier II MPO in imple-
menting and maintaining a performance-based plan-
ning process that— 
‘‘(A) addresses the performance targets de-
scribed in subsection (h)(2); and 
‘‘(B) demonstrates progress on the achieve-
ment of those performance targets. 
‘‘(l) CERTIFICATION.— 
‘‘(1) IN GENERAL.—The Secretary shall— 
‘‘(A) ensure that the metropolitan transpor-
tation planning process of a metropolitan plan-
ning organization is being carried out in accord-
ance with applicable Federal law; and 
‘‘(B) subject to paragraph (2), certify, not 
less frequently than once every 4 years, that the
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† HR 4348 EAS 
requirements of subparagraph (A) are met with 
respect to the metropolitan transportation plan-
ning process. 
‘‘(2) REQUIREMENTS FOR CERTIFICATION.—The 
Secretary may make a certification under paragraph 
(1)(B) if— 
‘‘(A) the metropolitan transportation plan-
ning process complies with the requirements of 
this section and other applicable Federal law; 
‘‘(B) representation on the metropolitan 
planning organization board includes officials of 
public agencies that administer or operate major 
modes of transportation in the relevant metro-
politan area, including providers of public 
transportation; and 
‘‘(C) a transportation improvement pro-
gram for the metropolitan planning area has 
been approved by the relevant metropolitan plan-
ning organization and applicable Governor. 
‘‘(3) DELEGATION
OF
AUTHORITY.—The Sec-
retary may— 
‘‘(A) delegate to the appropriate State fact- 
finding authority regarding the certification of a 
tier II MPO under this subsection; and
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† HR 4348 EAS 
‘‘(B) make the certification under para-
graph (1) in consultation with the State. 
‘‘(4) EFFECT OF FAILURE TO CERTIFY.— 
‘‘(A) WITHHOLDING OF PROJECT FUNDS.— 
If a metropolitan transportation planning proc-
ess of a metropolitan planning organization is 
not certified under paragraph (1), the Secretary 
may withhold up to 20 percent of the funds at-
tributable to the metropolitan planning area of 
the metropolitan planning organization for 
projects funded under this chapter and title 23. 
‘‘(B) 
RESTORATION
OF
WITHHELD 
FUNDS.—Any funds withheld under subpara-
graph (A) shall be restored to the metropolitan 
planning area on the date of certification of the 
metropolitan transportation planning process by 
the Secretary. 
‘‘(5) PUBLIC INVOLVEMENT.—In making a deter-
mination regarding certification under this sub-
section, the Secretary shall provide for public involve-
ment appropriate to the metropolitan planning area 
under review. 
‘‘(m) PERFORMANCE-BASED PLANNING PROCESSES 
EVALUATION.—
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‘‘(1) IN GENERAL.—The Secretary shall establish 
criteria to evaluate the effectiveness of the perform-
ance-based planning processes of metropolitan plan-
ning organizations under this section, taking into 
consideration the following: 
‘‘(A) The extent to which the metropolitan 
planning organization has achieved, or is cur-
rently making substantial progress toward 
achieving, the performance targets specified in 
subsection (h)(2), taking into account whether 
the metropolitan planning organization devel-
oped meaningful performance targets. 
‘‘(B) The extent to which the metropolitan 
planning organization has used proven best 
practices that help ensure transportation invest-
ment that is efficient and cost-effective. 
‘‘(C) The extent to which the metropolitan 
planning organization— 
‘‘(i) has developed an investment proc-
ess that relies on public input and aware-
ness to ensure that investments are trans-
parent and accountable; and 
‘‘(ii) provides regular reports allowing 
the public to access the information being 
collected in a format that allows the public
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to meaningfully assess the performance of 
the metropolitan planning organization. 
‘‘(2) REPORT.— 
‘‘(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 perform-
ance-based planning as a tool for guiding 
transportation investments; and 
‘‘(ii) the effectiveness of the perform-
ance-based planning process of each metro-
politan planning organization under this 
section. 
‘‘(B) PUBLICATION.—The report under sub-
paragraph (A) shall be published or otherwise 
made available in electronically accessible for-
mats and means, including on the Internet. 
‘‘(n) ADDITIONAL REQUIREMENTS FOR CERTAIN NON-
ATTAINMENT AREAS.— 
‘‘(1) IN GENERAL.—Notwithstanding any other 
provision of this chapter or title 23, Federal funds 
may not be advanced in any metropolitan planning 
area classified as a nonattainment area or mainte-
nance area for any highway project that will result
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† HR 4348 EAS 
in a significant increase in the carrying capacity for 
single-occupant vehicles, unless the owner or operator 
of the project demonstrates that the project will 
achieve or make substantial progress toward achieving 
the performance targets described in subsection (h)(2). 
‘‘(2) APPLICABILITY.—This subsection applies to 
any nonattainment area or maintenance area within 
the boundaries of a metropolitan planning area, as 
determined under subsection (c). 
‘‘(o) EFFECT OF SECTION.—Nothing in this section 
provides to any metropolitan planning organization the au-
thority to impose any legal requirement on any transpor-
tation facility, provider, or project not subject to the re-
quirements of this chapter or title 23. 
‘‘(p) FUNDING.—Funds apportioned under section 
104(b)(6) of title 23 and set aside under section 5305(g) 
of this title shall be available to carry out this section. 
‘‘(q) CONTINUATION
OF CURRENT REVIEW PRAC-
TICE.— 
‘‘(1) IN GENERAL.—In consideration of the fac-
tors described in paragraph (2), any decision by the 
Secretary concerning a metropolitan transportation 
plan or transportation improvement program shall 
not be considered to be a Federal action subject to re-
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† HR 4348 EAS 
view under the National Environmental Policy Act of 
1969 (42 U.S.C. 4321 et seq.). 
‘‘(2) DESCRIPTION OF FACTORS.—The factors re-
ferred to in paragraph (1) are that— 
‘‘(A) metropolitan transportation plans and 
transportation improvement programs are sub-
ject to a reasonable opportunity for public com-
ment; 
‘‘(B) the projects included in metropolitan 
transportation plans and transportation im-
provement programs are subject to review under 
the National Environmental Policy Act of 1969 
(42 U.S.C. 4321 et seq.); and 
‘‘(C) decisions by the Secretary concerning 
metropolitan transportation plans and transpor-
tation improvement programs have not been re-
viewed under the National Environmental Policy 
Act of 1969 (42 U.S.C. 4321 et seq.) as of Janu-
ary 1, 1997. 
‘‘(r) SCHEDULE
FOR IMPLEMENTATION.—The Sec-
retary shall issue guidance on a schedule for implementa-
tion of the changes made by this section, taking into consid-
eration the established planning update cycle for metropoli-
tan planning organizations. The Secretary shall not require 
a metropolitan planning organization to deviate from its
680 
† HR 4348 EAS 
established planning update cycle to implement changes 
made by this section. Metropolitan planning organizations 
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.’’. 
(b) PILOT PROGRAM FOR TRANSIT-ORIENTED DEVEL-
OPMENT PLANNING.— 
(1) DEFINITIONS.—In this subsection the fol-
lowing definitions 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 divi-
sion. 
(B) SECRETARY.—The term ‘‘Secretary’’ 
means the Secretary of Transportation. 
(2) GENERAL AUTHORITY.—The Secretary may 
make grants under this subsection to a State or local 
governmental authority to assist in financing com-
prehensive planning associated with an eligible 
project that seeks to—
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† HR 4348 EAS 
(A) enhance economic development, rider-
ship, and other goals established during the 
project development and engineering processes; 
(B) facilitate multimodal connectivity and 
accessibility; 
(C) increase access to transit hubs for pedes-
trian 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 develop-
ment of a comprehensive plan; 
(C) a description of how the eligible project 
and the proposed comprehensive plan advance 
the metropolitan transportation plan of the met-
ropolitan planning organization; 
(D) proposed performance criteria for the 
development and implementation of the com-
prehensive plan; and
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(E) identification of— 
(i) partners; 
(ii) availability of and authority for 
funding; and 
(iii) potential State, local or other im-
pediments to the implementation of the 
comprehensive plan. 
SEC. 20006. STATEWIDE AND NONMETROPOLITAN TRANS-
PORTATION PLANNING. 
Section 5304 of title 49, United States Code, is amend-
ed to read as follows: 
‘‘§ 5304. Statewide and nonmetropolitan transpor-
tation planning 
‘‘(a) 
STATEWIDE
TRANSPORTATION
PLANS
AND 
STIPS.— 
‘‘(1) DEVELOPMENT.— 
‘‘(A) IN GENERAL.—To accomplish the pol-
icy objectives described in section 5303(a), each 
State shall develop a statewide transportation 
plan and a statewide transportation improve-
ment program for all areas of the State in ac-
cordance with this section. 
‘‘(B) INCORPORATION
OF
METROPOLITAN 
TRANSPORTATION PLANS AND TIPS.—Each State 
shall incorporate in the statewide transportation
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† HR 4348 EAS 
plan and statewide transportation improvement 
program, without change or by reference, the 
metropolitan transportation plans and transpor-
tation improvement programs, respectively, for 
each metropolitan planning area in the State. 
‘‘(C) 
NONMETROPOLITAN
AREAS.—Each 
State shall consult with local officials in small 
urbanized areas with a population of 50,000 or 
more individuals, but fewer than 200,000 indi-
viduals, as calculated according to the most re-
cent decennial census, and nonurbanized areas of 
the State in preparing the nonmetropolitan por-
tions of statewide transportation plans and 
statewide transportation improvement programs. 
‘‘(2) CONTENTS.—The statewide transportation 
plan and statewide transportation improvement pro-
gram developed for each State shall provide for the 
development and integrated management and oper-
ation of transportation systems and facilities (includ-
ing accessible pedestrian walkways, bicycle transpor-
tation facilities, and intermodal facilities that sup-
port intercity transportation) that will function as— 
‘‘(A) an intermodal transportation system 
for the State; and
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† HR 4348 EAS 
‘‘(B) an integral part of an intermodal 
transportation system for the United States. 
‘‘(3) PROCESS.—The process for developing the 
statewide transportation plan and statewide trans-
portation improvement program shall— 
‘‘(A) provide for consideration of all modes 
of transportation; and 
‘‘(B) be continuing, cooperative, and com-
prehensive to the degree appropriate, based on 
the complexity of the transportation needs to be 
addressed. 
‘‘(b) COORDINATION AND CONSULTATION.— 
‘‘(1) IN GENERAL.—Each State shall— 
‘‘(A) coordinate planning carried out under 
this section with— 
‘‘(i) the transportation planning ac-
tivities carried out under section 5303 for 
metropolitan areas of the State; and 
‘‘(ii) statewide trade and economic de-
velopment planning activities and related 
multistate planning efforts; 
‘‘(B) coordinate planning carried out under 
this section with the transportation planning ac-
tivities carried out by each nonmetropolitan
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† HR 4348 EAS 
planning organization in the State, as applica-
ble; 
‘‘(C) consult on planning carried out under 
this section with the transportation planning ac-
tivities carried out by each rural planning orga-
nization in the State, as applicable; and 
‘‘(D) develop the transportation portion of 
the State implementation plan as required by 
the Clean Air Act (42 U.S.C. 7401 et seq.). 
‘‘(2) MULTISTATE AREAS.— 
‘‘(A) IN GENERAL.—The Secretary shall en-
courage each Governor with responsibility for a 
portion of a multistate metropolitan planning 
area and the appropriate metropolitan planning 
organizations to provide coordinated transpor-
tation planning for the entire metropolitan area. 
‘‘(B) COORDINATION
ALONG
DESIGNATED 
TRANSPORTATION
CORRIDORS.—The Secretary 
shall encourage each Governor with responsi-
bility for a portion of a multistate transpor-
tation corridor to provide coordinated transpor-
tation planning for the entire designated cor-
ridor. 
‘‘(C) INTERSTATE
COMPACTS.—For pur-
poses of this section, any 2 or more States—
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† HR 4348 EAS 
‘‘(i) may enter into compacts, agree-
ments, or organizations not in conflict with 
any Federal law for cooperative efforts and 
mutual assistance in support of activities 
authorized under this section, as the activi-
ties relate to interstate areas and localities 
within the States; 
‘‘(ii) may establish such agencies (joint 
or otherwise) as the States determine to be 
appropriate for ensuring the effectiveness of 
the agreements and compacts; and 
‘‘(iii) are encouraged to enter into such 
compacts, agreements, or organizations as 
are appropriate to develop planning docu-
ments in support of intercity or multistate 
area projects, facilities, and services, the rel-
evant components of which shall be reflected 
in statewide transportation improvement 
programs and statewide transportation 
plans. 
‘‘(D) RESERVATION OF RIGHTS.—The right 
to alter, amend, or repeal any interstate compact 
or agreement entered into under this subsection 
is expressly reserved.
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† HR 4348 EAS 
‘‘(c) RELATIONSHIP WITH OTHER PLANNING OFFI-
CIALS.— 
‘‘(1) IN GENERAL.—The Secretary shall encour-
age each State to cooperate with Federal, State, trib-
al, and local officers and entities responsible for other 
types of planning activities that are affected by trans-
portation in the relevant area (including planned 
growth, economic development, infrastructure services, 
housing, other public services, environmental protec-
tion, airport operations, high-speed and intercity pas-
senger rail, freight rail, port access, and freight move-
ments), to the maximum extent practicable, to ensure 
that the statewide and nonmetropolitan planning 
process, statewide transportation plans, and statewide 
transportation improvement programs are developed 
with due consideration for other related planning ac-
tivities in the State. 
‘‘(2) INCLUSION.—Cooperation under paragraph 
(1) shall include the design and delivery of transpor-
tation services within the State that are provided 
by— 
‘‘(A) recipients of assistance under sections 
202, 203, and 204 of title 23; 
‘‘(B) recipients of assistance under this 
chapter;
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† HR 4348 EAS 
‘‘(C) government agencies and nonprofit or-
ganizations (including representatives of the 
agencies and organizations) that receive Federal 
assistance from a source other than the Depart-
ment of Transportation to provide nonemergency 
transportation services; and 
‘‘(D) sponsors of regionally significant pro-
grams, projects, and services that are related to 
transportation and receive assistance from any 
public or private source. 
‘‘(d) SCOPE OF PLANNING PROCESS.— 
‘‘(1) IN GENERAL.—The statewide transportation 
planning process for a State under this section shall 
provide for consideration of projects, strategies, and 
services that will— 
‘‘(A) support the economic vitality of the 
United States, the State, nonmetropolitan areas, 
and metropolitan areas, especially by enabling 
global competitiveness, travel and tourism (where 
applicable), productivity, and efficiency; 
‘‘(B) increase the safety of the transpor-
tation system for motorized and nonmotorized 
users;
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† HR 4348 EAS 
‘‘(C) increase the security of the transpor-
tation system for motorized and nonmotorized 
users; 
‘‘(D) increase the accessibility and mobility 
of individuals and freight; 
‘‘(E) protect and enhance the environment, 
promote energy conservation, improve the qual-
ity of life, and promote consistency between 
transportation improvements and State and 
local planned growth and economic development 
patterns; 
‘‘(F) 
enhance 
the 
integration 
and 
connectivity of the transportation system, across 
and between modes, for individuals and freight; 
‘‘(G) increase efficient system management 
and operation; and 
‘‘(H) emphasize the preservation of the ex-
isting transportation system. 
‘‘(2) PERFORMANCE-BASED APPROACH.— 
‘‘(A) IN GENERAL.—The statewide transpor-
tation planning process shall provide for the es-
tablishment and use of a performance-based ap-
proach to transportation decisionmaking to sup-
port the national goals described in section
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5301(c) of this title and in section 150(b) of title 
23. 
‘‘(B) SURFACE TRANSPORTATION PERFORM-
ANCE TARGETS.— 
‘‘(i) IN
GENERAL.—Each State shall 
establish performance targets that address 
the performance measures described in sec-
tions 119(f), 148(h), and 167(i) of title 23 
to use in tracking attainment of critical 
outcomes for the region of the State. 
‘‘(ii) COORDINATION.—Selection of per-
formance targets by a State shall be coordi-
nated with relevant metropolitan planning 
organizations to ensure consistency, to the 
maximum extent practicable. 
‘‘(C) PUBLIC
TRANSPORTATION
PERFORM-
ANCE TARGETS.—For providers of public trans-
portation operating 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, each State shall adopt 
the performance targets identified by such pro-
viders of public transportation pursuant to sec-
tions 5326(c) and 5329(d), for use in tracking
691 
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attainment of critical outcomes for the region of 
the metropolitan planning organization. 
‘‘(D) INTEGRATION
OF
OTHER
PERFORM-
ANCE-BASED
PLANS.—A State shall integrate 
into the statewide transportation planning proc-
ess, directly or by reference, the goals, objectives, 
performance measures, and performance targets 
described in this paragraph in other State plans 
and processes, and asset management and safety 
plans developed by providers of public transpor-
tation in urbanized areas with a population of 
fewer than 200,000 individuals, as calculated ac-
cording to the most recent decennial census, and 
not represented by a metropolitan planning or-
ganization, required as part of a performance- 
based program, including plans such as— 
‘‘(i) the State National Highway Sys-
tem asset management plan; 
‘‘(ii) asset management plans devel-
oped by providers of public transportation; 
‘‘(iii) the State strategic highway safe-
ty plan; 
‘‘(iv) safety plans developed by pro-
viders of public transportation; and 
‘‘(v) the national freight strategic plan.
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‘‘(E) USE
OF
PERFORMANCE
MEASURES 
AND TARGETS.—The performance measures and 
targets established under this paragraph shall be 
used, at a minimum, by a State as the basis for 
development of policies, programs, and invest-
ment priorities reflected in the statewide trans-
portation plan and statewide transportation im-
provement program. 
‘‘(3) FAILURE TO CONSIDER FACTORS.—The fail-
ure to take into consideration 1 or more of the factors 
specified in paragraphs (1) and (2) shall not be sub-
ject 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 trans-
portation plan, a statewide transportation improve-
ment program, a project or strategy, or the certifi-
cation of a planning process. 
‘‘(4) PARTICIPATION BY INTERESTED PARTIES.— 
‘‘(A) IN GENERAL.—Each State shall pro-
vide to— 
‘‘(i) nonmetropolitan local elected offi-
cials an opportunity to participate in ac-
cordance with subparagraph (B)(i); and 
‘‘(ii) affected individuals, public agen-
cies, and other interested parties notice and
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† HR 4348 EAS 
a reasonable opportunity to comment on the 
statewide transportation plan and statewide 
transportation improvement program. 
‘‘(B) METHODS.—In carrying out this 
paragraph, the State shall— 
‘‘(i) develop and document a consult-
ative process to carry out subparagraph 
(A)(i) that is separate and discrete from the 
public involvement process developed under 
clause (ii); 
‘‘(ii) develop the statewide transpor-
tation plan and statewide transportation 
improvement program in consultation with 
interested parties, as appropriate, including 
by the formation of advisory groups rep-
resentative of the State and interested par-
ties that participate in the development of 
the statewide transportation plan and state-
wide transportation improvement program; 
‘‘(iii) hold any public meetings at 
times and locations that are, as applica-
ble— 
‘‘(I) convenient; and
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‘‘(II) in compliance with the 
Americans with Disabilities Act of 
1990 (42 U.S.C. 12101 et seq.); 
‘‘(iv) employ visualization techniques 
to describe statewide transportation plans 
and statewide transportation improvement 
programs; and 
‘‘(v) make public information available 
in appropriate electronically accessible for-
mats and means, such as the Internet, to af-
ford reasonable opportunity for consider-
ation of public information under subpara-
graph (A). 
‘‘(e) COORDINATION AND CONSULTATION.— 
‘‘(1) METROPOLITAN AREAS.— 
‘‘(A) IN
GENERAL.—Each State shall de-
velop a statewide transportation plan and state-
wide transportation improvement program for 
each metropolitan area in the State by incor-
porating, without change or by reference, at a 
minimum, as prepared by each metropolitan 
planning organization designated for the metro-
politan area under section 5303— 
‘‘(i) all regionally significant projects 
to be carried out during the 10-year period
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† HR 4348 EAS 
beginning on the effective date of the rel-
evant existing metropolitan transportation 
plan; and 
‘‘(ii) all projects to be carried out dur-
ing the 4-year period beginning on the effec-
tive date of the relevant transportation im-
provement program. 
‘‘(B) PROJECTED COSTS.—Each metropoli-
tan planning organization shall provide to each 
applicable State a description of the projected 
costs of implementing the projects included in 
the metropolitan transportation plan of the met-
ropolitan planning organization for purposes of 
metropolitan financial planning and fiscal con-
straint. 
‘‘(2) NONMETROPOLITAN
AREAS.—With respect 
to nonmetropolitan areas in a State, the statewide 
transportation plan and statewide transportation im-
provement program of the State shall be developed in 
consultation with affected nonmetropolitan local offi-
cials with responsibility for transportation, including 
providers of public transportation. 
‘‘(3) INDIAN
TRIBAL
AREAS.—With respect to 
each area of a State under the jurisdiction of an In-
dian tribe, the statewide transportation plan and
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† HR 4348 EAS 
statewide transportation improvement program of the 
State shall be developed in consultation with— 
‘‘(A) the tribal government; and 
‘‘(B) the Secretary of the Interior. 
‘‘(4) FEDERAL LAND MANAGEMENT AGENCIES.— 
With respect to each area of a State under the juris-
diction of a Federal land management agency, the 
statewide transportation plan and statewide trans-
portation improvement program of the State shall be 
developed in consultation with the relevant Federal 
land management agency. 
‘‘(5) CONSULTATION, COMPARISON, AND CONSID-
ERATION.— 
‘‘(A) IN GENERAL.—A statewide transpor-
tation plan shall be developed, as appropriate, in 
consultation with Federal, State, tribal, and 
local agencies responsible for land use manage-
ment, natural resources, infrastructure permit-
ting, environmental protection, conservation, and 
historic preservation. 
‘‘(B) COMPARISON AND CONSIDERATION.— 
Consultation under subparagraph (A) shall in-
volve the comparison of statewide transportation 
plans to, as available—
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‘‘(i) Federal, State, tribal, and local 
conservation plans or maps; and 
‘‘(ii) inventories of natural or historic 
resources. 
‘‘(f) STATEWIDE TRANSPORTATION PLAN.— 
‘‘(1) DEVELOPMENT.— 
‘‘(A) IN
GENERAL.—Each State shall de-
velop a statewide transportation plan, the fore-
cast period of which shall be not less than 20 
years for all areas of the State, that provides for 
the development and implementation of the 
intermodal transportation system of the State. 
‘‘(B) INITIAL PERIOD.—A statewide trans-
portation plan shall include, at a minimum, for 
the first 10-year period of the statewide trans-
portation plan, the identification of existing and 
future transportation facilities that will function 
as an integrated statewide transportation sys-
tem, giving emphasis to those facilities that serve 
important national, statewide, and regional 
transportation functions. 
‘‘(C) SUBSEQUENT PERIOD.—For the second 
10-year period of the statewide transportation 
plan (referred to in this subsection as the ‘outer
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† HR 4348 EAS 
years 
period’), 
a 
statewide 
transportation 
plan— 
‘‘(i) may include identification of fu-
ture transportation facilities; and 
‘‘(ii) shall describe the policies and 
strategies that provide for the development 
and implementation of the intermodal 
transportation system of the State. 
‘‘(D) OTHER REQUIREMENTS.—A statewide 
transportation plan shall— 
‘‘(i) include, for the 20-year period 
covered by the statewide transportation 
plan, a description of— 
‘‘(I) the projected aggregate cost of 
projects anticipated by a State to be 
implemented; and 
‘‘(II) the revenues necessary to 
support the projects; 
‘‘(ii) include, in such form as the Sec-
retary determines to be appropriate, a de-
scription of— 
‘‘(I) the existing transportation 
infrastructure, including an identifica-
tion of highways, local streets and 
roads, bicycle and pedestrian facilities,
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† HR 4348 EAS 
public transportation facilities and 
services, commuter rail facilities and 
services, high-speed and intercity pas-
senger rail facilities and services, 
freight facilities (including freight rail-
road and port facilities), multimodal 
and intermodal facilities, and inter-
modal connectors that, evaluated in the 
aggregate, function as an integrated 
transportation system; 
‘‘(II) the performance measures 
and performance targets used in assess-
ing the existing and future perform-
ance of the transportation system de-
scribed in subsection (d)(2); 
‘‘(III) the current and projected 
future usage of the transportation sys-
tem, including, to the maximum extent 
practicable, an identification of exist-
ing or planned transportation rights- 
of-way, corridors, facilities, and related 
real properties; 
‘‘(IV) a system performance report 
evaluating the existing and future con-
dition and performance of the trans-
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† HR 4348 EAS 
portation system with respect to the 
performance targets described in sub-
section (d)(2) and updates to subse-
quent system performance reports, in-
cluding— 
‘‘(aa) progress achieved by 
the State in meeting performance 
targets, as compared to system 
performance recorded in previous 
reports; and 
‘‘(bb) an accounting of the 
performance by the State on out-
lay of obligated project funds and 
delivery of projects that have 
reached substantial completion, in 
relation to the projects currently 
on the statewide transportation 
improvement program and those 
projects that have been removed 
from the previous statewide trans-
portation improvement program; 
‘‘(V) recommended strategies and 
investments for improving system per-
formance over the planning horizon, 
including transportation systems man-
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† HR 4348 EAS 
agement and operations strategies, 
maintenance strategies, demand man-
agement strategies, asset management 
strategies, capacity and enhancement 
investments, land use improvements, 
intelligent transportation systems de-
ployment and technology adoption 
strategies as determined by the pro-
jected support of performance targets 
described in subsection (d)(2); 
‘‘(VI) recommended strategies and 
investments to improve and integrate 
disability-related access to transpor-
tation infrastructure; 
‘‘(VII) investment priorities for 
using projected available and proposed 
revenues over the short- and long-term 
stages of the planning horizon, in ac-
cordance with the financial plan re-
quired under paragraph (2); 
‘‘(VIII) a description of interstate 
compacts entered into in order to pro-
mote coordinated transportation plan-
ning in multistate areas, if applicable;
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† HR 4348 EAS 
‘‘(IX) an optional illustrative list 
of 
projects 
containing 
investments 
that— 
‘‘(aa) are not included in the 
statewide transportation plan; but 
‘‘(bb) would be so included if 
resources in addition to the re-
sources identified in the financial 
plan under paragraph (2) were 
available; 
‘‘(X) a discussion (developed in 
consultation with Federal, State, and 
tribal wildlife, land management, and 
regulatory agencies) of types of poten-
tial environmental and stormwater 
mitigation activities and potential 
areas to carry out those activities, in-
cluding activities that may have the 
greatest potential to restore and main-
tain the environmental functions af-
fected by the statewide transportation 
plan; and 
‘‘(XI) recommended strategies and 
investments, including those developed 
by the State as part of interstate com-
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† HR 4348 EAS 
pacts, agreements, or organizations, 
that support intercity transportation; 
and 
‘‘(iii) be updated by the State not less 
frequently than once every 5 years. 
‘‘(2) FINANCIAL
PLAN.—A financial plan re-
ferred to in paragraph (1)(D)(ii)(VII) shall— 
‘‘(A) be prepared by each State to support 
the statewide transportation plan; and 
‘‘(B) contain a description of the following: 
‘‘(i) Projected resource requirements 
during the 20-year planning horizon for 
implementing projects, strategies, and serv-
ices recommended in the statewide transpor-
tation plan, including existing and pro-
jected system operating and maintenance 
needs, proposed enhancement and expan-
sions to the system, projected available rev-
enue from Federal, State, local, and private 
sources, and innovative financing tech-
niques to finance projects and programs. 
‘‘(ii) The projected difference between 
costs and revenues, and strategies for secur-
ing additional new revenue (such as by cap-
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† HR 4348 EAS 
ture of some of the economic value created 
by any new investment). 
‘‘(iii) Estimates of future funds, to be 
developed cooperatively by the State, any 
public transportation agency, and relevant 
metropolitan planning organizations, that 
are reasonably expected to be available to 
support 
the 
investment 
priorities 
rec-
ommended in the statewide transportation 
plan. 
‘‘(iv) Each applicable project, only if 
full funding can reasonably be anticipated 
to be available for the project within the 
time period contemplated for completion of 
the project. 
‘‘(v) For the outer years period of the 
statewide transportation plan, a description 
of the aggregate cost ranges or bands, sub-
ject to the condition that any future fund-
ing source shall be reasonably expected to be 
available to support the projected cost 
ranges or bands. 
‘‘(3) COORDINATION WITH CLEAN AIR ACT AGEN-
CIES.—For any nonmetropolitan area that is a non-
attainment area or maintenance area, the State shall
705 
† HR 4348 EAS 
coordinate the development of the statewide transpor-
tation plan with the process for development of the 
transportation control measures of the State imple-
mentation plan required by the Clean Air Act (42 
U.S.C. 7401 et seq.). 
‘‘(4) PUBLICATION.—A statewide transportation 
plan involving Federal and non-Federal participation 
programs, projects, and strategies shall be published 
or otherwise made readily available by the State for 
public review, including (to the maximum extent 
practicable) in electronically accessible formats and 
means, such as the Internet, in such manner as the 
Secretary shall require. 
‘‘(5) SELECTION
OF
PROJECTS
FROM
ILLUS-
TRATIVE
LIST.—Notwithstanding paragraph (2), a 
State shall not be required to select any project from 
the illustrative list of additional projects included in 
the statewide transportation plan under paragraph 
(1)(D)(ii)(IX). 
‘‘(6) USE OF POLICY PLANS.—Notwithstanding 
any other provision of this section, a State that has 
in effect, as of the date of enactment of the Federal 
Public Transportation Act of 2012, a statewide trans-
portation plan that follows a policy plan approach—
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† HR 4348 EAS 
‘‘(A) may, for 4 years after the date of en-
actment of the Federal Public Transportation 
Act of 2012, continue to use a policy plan ap-
proach to the statewide transportation plan; and 
‘‘(B) shall be subject to the requirements of 
this subsection only to the extent that such re-
quirements were applicable under this section (as 
in effect on the day before the date of enactment 
of the Federal Public Transportation Act of 
2012). 
‘‘(g) STATEWIDE
TRANSPORTATION
IMPROVEMENT 
PROGRAMS.— 
‘‘(1) DEVELOPMENT.— 
‘‘(A) IN
GENERAL.—In consultation with 
nonmetropolitan officials with responsibility for 
transportation and affected public transpor-
tation operators, the State shall develop a state-
wide transportation improvement program for 
the State that— 
‘‘(i) includes projects consistent with 
the statewide transportation plan; 
‘‘(ii) reflects the investment priorities 
established in the statewide transportation 
plan; and
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† HR 4348 EAS 
‘‘(iii) once implemented, makes signifi-
cant progress toward achieving the perform-
ance targets described in subsection (d)(2). 
‘‘(B) OPPORTUNITY FOR PARTICIPATION.— 
In developing a statewide transportation im-
provement program, the State, in cooperation 
with affected public transportation operators, 
shall provide an opportunity for participation 
by interested parties (including State representa-
tives of nonmotorized users) in the development 
of the statewide transportation improvement pro-
gram, in accordance with subsection (e). 
‘‘(C) OTHER REQUIREMENTS.— 
‘‘(i) IN GENERAL.—A statewide trans-
portation improvement program shall— 
‘‘(I) cover a period of not less 
than 4 years; and 
‘‘(II) be updated not less fre-
quently than once every 4 years, or 
more frequently, as the Governor deter-
mines to be appropriate. 
‘‘(ii) INCORPORATION
OF
TIPS.—A 
statewide transportation improvement pro-
gram shall incorporate any relevant trans-
portation improvement program developed
708 
† HR 4348 EAS 
by a metropolitan planning organization 
under section 5303, without change. 
‘‘(iii) PROJECTS.—Each project in-
cluded in a statewide transportation im-
provement program shall be— 
‘‘(I) consistent with the statewide 
transportation plan developed under 
this section for the State; 
‘‘(II) identical to a project or 
phase of a project described in a rel-
evant transportation improvement pro-
gram; and 
‘‘(III) for any project located in a 
nonattainment area or maintenance 
area, carried out in accordance with 
the applicable State air quality imple-
mentation plan developed under the 
Clean Air Act (42 U.S.C. 7401 et seq.). 
‘‘(2) CONTENTS.— 
‘‘(A) PRIORITY
LIST.—A statewide trans-
portation improvement program shall include a 
priority list of proposed federally supported 
projects and strategies, to be carried out during 
the 4-year period beginning on the date of adop-
tion of the statewide transportation improvement
709 
† HR 4348 EAS 
program, and during each 4-year period there-
after, using existing and reasonably available 
revenues in accordance with the financial plan 
under paragraph (3). 
‘‘(B) 
DESCRIPTIONS.—Each 
project 
or 
phase of a project included in a statewide trans-
portation improvement program shall include 
sufficient descriptive material (such as type of 
work, termini, length, estimated completion date, 
and other similar factors) to identify— 
‘‘(i) the project or project phase; and 
‘‘(ii) the effect that the project or 
project phase will have in addressing the 
performance targets described in subsection 
(d)(2). 
‘‘(C) 
PERFORMANCE
TARGET
ACHIEVE-
MENT.—A statewide transportation improvement 
program shall include, to the maximum extent 
practicable, a discussion of the anticipated effect 
of the statewide transportation improvement pro-
gram toward achieving the performance targets 
established in the statewide transportation plan, 
linking investment priorities to those perform-
ance targets.
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† HR 4348 EAS 
‘‘(D) ILLUSTRATIVE LIST OF PROJECTS.— 
An optional illustrative list of projects may be 
prepared containing additional investment pri-
orities that— 
‘‘(i) are not included in the statewide 
transportation improvement program; but 
‘‘(ii) would be so included if resources 
in addition to the resources identified in the 
financial plan under paragraph (3) were 
available. 
‘‘(3) FINANCIAL
PLAN.—A financial plan re-
ferred to in paragraph (2)(D)(ii) shall— 
‘‘(A) be prepared by each State to support 
the statewide transportation improvement pro-
gram; and 
‘‘(B) contain a description of the following: 
‘‘(i) Projected resource requirements for 
implementing projects, strategies, and serv-
ices recommended in the statewide transpor-
tation improvement program, including ex-
isting and projected system operating and 
maintenance needs, proposed enhancement 
and expansions to the system, projected 
available revenue from Federal, State, local, 
and private sources, and innovative financ-
711 
† HR 4348 EAS 
ing techniques to finance projects and pro-
grams. 
‘‘(ii) The projected difference between 
costs and revenues, and strategies for secur-
ing additional new revenue (such as by cap-
ture of some of the economic value created 
by any new investment). 
‘‘(iii) Estimates of future funds, to be 
developed cooperatively by the State and 
relevant metropolitan planning organiza-
tions and public transportation agencies, 
that are reasonably expected to be available 
to support the investment priorities rec-
ommended in the statewide transportation 
improvement program. 
‘‘(iv) Each applicable project, only if 
full funding can reasonably be anticipated 
to be available for the project within the 
time period contemplated for completion of 
the project. 
‘‘(4) INCLUDED PROJECTS.— 
‘‘(A) PROJECTS UNDER THIS CHAPTER AND 
TITLE 23.—A statewide transportation improve-
ment program developed under this subsection 
for a State shall include the projects within the
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† HR 4348 EAS 
State that are proposed for funding under this 
chapter and chapter 1 of title 23. 
‘‘(B) PROJECTS UNDER THIS CHAPTER AND 
CHAPTER 2.— 
‘‘(i) REGIONALLY SIGNIFICANT.—Each 
regionally significant project proposed for 
funding under this chapter and chapter 2 of 
title 23 shall be identified individually in 
the statewide transportation improvement 
program. 
‘‘(ii) NONREGIONALLY SIGNIFICANT.— 
A description of each project proposed for 
funding under this chapter and chapter 2 of 
title 23 that is not determined to be region-
ally significant shall be contained in 1 line 
item or identified individually in the state-
wide transportation improvement program. 
‘‘(5) PUBLICATION.— 
‘‘(A) IN GENERAL.—A statewide transpor-
tation improvement program shall be published 
or otherwise made readily available by the State 
for public review in electronically accessible for-
mats and means, such as the Internet. 
‘‘(B) ANNUAL LIST OF PROJECTS.—An an-
nual list of projects, including investments in pe-
713 
† HR 4348 EAS 
destrian walkways, bicycle transportation facili-
ties, and intermodal facilities that support inter-
city transportation, for which Federal funds 
have been obligated during the preceding fiscal 
year shall be published or otherwise made avail-
able by the cooperative effort of the State, public 
transportation operator, and relevant metropoli-
tan planning organizations in electronically ac-
cessible formats and means, such as the Internet, 
in a manner that is consistent with the cat-
egories identified in the relevant statewide trans-
portation improvement program. 
‘‘(6) PROJECT
SELECTION
FOR
URBANIZED 
AREAS WITH POPULATIONS OF FEWER THAN 200,000 
NOT REPRESENTED BY DESIGNATED MPOS.—Projects 
carried out in urbanized areas with populations of 
fewer than 200,000 individuals, as calculated accord-
ing to the most recent decennial census, and that are 
not represented by designated metropolitan planning 
organizations, shall be selected from the approved 
statewide transportation improvement program (in-
cluding projects carried out under this chapter and 
projects carried out on the National Highway Sys-
tem) by the State, in cooperation with the affected 
nonmetropolitan planning organization, if any exists,
714 
† HR 4348 EAS 
and in consultation with the affected nonmetropolitan 
area local officials with responsibility for transpor-
tation. 
‘‘(7) APPROVAL BY SECRETARY.— 
‘‘(A) IN GENERAL.—Not less frequently than 
once every 4 years, a statewide transportation 
improvement program developed under this sub-
section shall be reviewed and approved by the 
Secretary, based on the current planning finding 
of the Secretary under subparagraph (B). 
‘‘(B) PLANNING
FINDING.—The Secretary 
shall make a planning finding referred to in sub-
paragraph (A) not less frequently than once 
every 5 years regarding whether the transpor-
tation planning process through which statewide 
transportation plans and statewide transpor-
tation improvement programs are developed is 
consistent with this section and section 5303. 
‘‘(8) MODIFICATIONS TO PROJECT PRIORITY.— 
Notwithstanding any other provision of law, approval 
by the Secretary shall not be required to carry out a 
project included in an approved statewide transpor-
tation improvement program in place of another 
project in the statewide transportation improvement 
program.
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† HR 4348 EAS 
‘‘(h) CERTIFICATION.— 
‘‘(1) IN GENERAL.—The Secretary shall— 
‘‘(A) ensure that the statewide transpor-
tation planning process of a State is being car-
ried out in accordance with this section and ap-
plicable Federal law (including rules and regula-
tions); and 
‘‘(B) subject to paragraph (2), certify, not 
later than 180 days after the date of enactment 
of the Federal Public Transportation Act of 2012 
and not less frequently than once every 5 years 
thereafter, that the requirements of subparagraph 
(A) are met with respect to the statewide trans-
portation planning process. 
‘‘(2) REQUIREMENTS FOR CERTIFICATION.—The 
Secretary may make a certification under paragraph 
(1)(B) if— 
‘‘(A) the statewide transportation planning 
process complies with the requirements of this 
section and other applicable Federal law; and 
‘‘(B) a statewide transportation improve-
ment program for the State has been approved 
by the Governor of the State. 
‘‘(3) EFFECT OF FAILURE TO CERTIFY.—
716 
† HR 4348 EAS 
‘‘(A) WITHHOLDING OF PROJECT FUNDS.— 
If a statewide transportation planning process of 
a State is not certified under paragraph (1), the 
Secretary may withhold up to 20 percent of the 
funds attributable to the State for projects fund-
ed under this chapter and title 23. 
‘‘(B) 
RESTORATION
OF
WITHHELD 
FUNDS.—Any funds withheld under subpara-
graph (A) shall be restored to the State on the 
date of certification of the statewide transpor-
tation planning process by the Secretary. 
‘‘(4) PUBLIC INVOLVEMENT.—In making a deter-
mination regarding certification under this sub-
section, the Secretary shall provide for public involve-
ment appropriate to the State under review. 
‘‘(i) PERFORMANCE-BASED
PLANNING
PROCESSES 
EVALUATION.— 
‘‘(1) IN GENERAL.—The Secretary shall establish 
criteria to evaluate the effectiveness of the perform-
ance-based planning processes of States, taking into 
consideration the following: 
‘‘(A) The extent to which the State has 
achieved, or is currently making substantial 
progress toward achieving, the performance tar-
gets described in subsection (d)(2), taking into
717 
† HR 4348 EAS 
account whether the State developed meaningful 
performance targets. 
‘‘(B) The extent to which the State has used 
proven best practices that help ensure transpor-
tation investment that is efficient and cost-effec-
tive. 
‘‘(C) The extent to which the State— 
‘‘(i) has developed an investment proc-
ess that relies on public input and aware-
ness to ensure that investments are trans-
parent and accountable; and 
‘‘(ii) provides regular 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.— 
‘‘(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 perform-
ance-based planning as a tool for guiding 
transportation investments; and
718 
† HR 4348 EAS 
‘‘(ii) the effectiveness of the perform-
ance-based planning process of each State. 
‘‘(B) PUBLICATION.—The report under sub-
paragraph (A) shall be published or otherwise 
made available in electronically accessible for-
mats and means, including on the Internet. 
‘‘(j) FUNDING.—Funds apportioned under section 
104(b)(6) of title 23 and set aside under section 5305(g) 
shall be available to carry out this section. 
‘‘(k) CONTINUATION
OF CURRENT REVIEW PRAC-
TICE.— 
‘‘(1) IN GENERAL.—In consideration of the fac-
tors described in paragraph (2), any decision by the 
Secretary concerning a statewide transportation plan 
or statewide transportation improvement program 
shall not be considered to be a Federal action subject 
to review under the National Environmental Policy 
Act of 1969 (42 U.S.C. 4321 et seq.). 
‘‘(2) DESCRIPTION OF FACTORS.—The factors re-
ferred to in paragraph (1) are that— 
‘‘(A) statewide transportation plans and 
statewide transportation improvement programs 
are subject to a reasonable opportunity for public 
comment;
719 
† HR 4348 EAS 
‘‘(B) the projects included in statewide 
transportation plans and statewide transpor-
tation improvement programs are subject to re-
view under the National Environmental Policy 
Act of 1969 (42 U.S.C. 4321 et seq.); and 
‘‘(C) decisions by the Secretary concerning 
statewide transportation plans and statewide 
transportation improvement programs have not 
been reviewed under the National Environmental 
Policy Act of 1969 (42 U.S.C. 4321 et seq.) as 
of January 1, 1997. 
‘‘(l) SCHEDULE
FOR IMPLEMENTATION.—The Sec-
retary shall issue guidance on a schedule for implementa-
tion of the changes made by this section, taking into consid-
eration 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 sub-
section.’’.
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† HR 4348 EAS 
SEC. 20007. PUBLIC TRANSPORTATION EMERGENCY RELIEF 
PROGRAM. 
(a) IN GENERAL.—Section 5306 of title 49, United 
States Code, is amended to read as follows: 
‘‘§ 5306. Public transportation emergency relief pro-
gram 
‘‘(a) DEFINITION.—In this section the following defini-
tions shall apply: 
‘‘(1) ELIGIBLE OPERATING COSTS.—The term ‘el-
igible operating costs’ means costs relating to— 
‘‘(A) evacuation services; 
‘‘(B) rescue operations; 
‘‘(C) temporary public transportation serv-
ice; or 
‘‘(D) reestablishing, expanding, or relo-
cating public transportation route service before, 
during, or after an emergency. 
‘‘(2) EMERGENCY.—The term ‘emergency’ means 
a natural disaster affecting a wide area (such as a 
flood, hurricane, tidal wave, earthquake, severe storm, 
or landslide) or a catastrophic failure from any exter-
nal cause, as a result of which— 
‘‘(A) the Governor of a State has declared 
an emergency and the Secretary has concurred; 
or
721 
† HR 4348 EAS 
‘‘(B) the President has declared a major 
disaster under section 401 of the Robert T. Staf-
ford Disaster Relief and Emergency Assistance 
Act (42 U.S.C. 5170). 
‘‘(b) GENERAL AUTHORITY.—The Secretary may make 
grants and enter into contracts and other agreements (in-
cluding agreements with departments, agencies, and instru-
mentalities of the Government) for— 
‘‘(1) capital projects to protect, repair, recon-
struct, or replace equipment and facilities of a public 
transportation system operating in the United States 
or on an Indian reservation that the Secretary deter-
mines is in danger of suffering serious damage, or has 
suffered serious damage, as a result of an emergency; 
and 
‘‘(2) eligible operating costs of public transpor-
tation equipment and facilities in an area directly af-
fected by an emergency during— 
‘‘(A) the 1-year period beginning on the 
date of a declaration described in subsection 
(a)(2); or 
‘‘(B) if the Secretary determines there is a 
compelling need, the 2-year period beginning on 
the date of a declaration described in subsection 
(a)(2).
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† HR 4348 EAS 
‘‘(c) COORDINATION OF EMERGENCY FUNDS.— 
‘‘(1) USE OF FUNDS.—Funds appropriated to 
carry out this section shall be in addition to any 
other funds available under this chapter. 
‘‘(2) NO EFFECT ON OTHER GOVERNMENT ACTIV-
ITY.—The provision of funds under this section shall 
not affect the ability of any other agency of the Gov-
ernment, including the Federal Emergency Manage-
ment Agency, or a State agency, a local governmental 
entity, organization, or person, to provide any other 
funds otherwise authorized by law. 
‘‘(3) NOTIFICATION.—The Secretary shall notify 
the Secretary of Homeland Security of the purpose 
and amount of any grant made or contract or other 
agreement entered into under this section. 
‘‘(d) GRANT
REQUIREMENTS.—A grant awarded 
under this section or under section 5307 or 5311 that is 
made to address an emergency defined under subsection 
(a)(2) shall be— 
‘‘(1) subject to the terms and conditions the Sec-
retary determines are necessary; and 
‘‘(2) made only for expenses that are not reim-
bursed under the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act (42 U.S.C. 5121 et 
seq.).
723 
† HR 4348 EAS 
‘‘(e) GOVERNMENT SHARE OF COSTS.— 
‘‘(1) CAPITAL PROJECTS AND OPERATING ASSIST-
ANCE.—A grant, contract, or other agreement for a 
capital project or eligible operating costs under this 
section shall be, at the option of the recipient, for not 
more than 80 percent of the net project cost, as deter-
mined by the Secretary. 
‘‘(2) NON-FEDERAL SHARE.—The remainder of 
the net project cost may be provided from an undis-
tributed cash surplus, a replacement or depreciation 
cash fund or reserve, or new capital. 
‘‘(3) WAIVER.—The Secretary may waive, in 
whole or part, the non-Federal share required 
under— 
‘‘(A) paragraph (2); or 
‘‘(B) section 5307 or 5311, in the case of a 
grant made available under section 5307 or 
5311, respectively, to address an emergency.’’. 
(b) MEMORANDUM OF AGREEMENT.— 
(1) PURPOSES.—The purposes of this subsection 
are— 
(A) to improve coordination between the De-
partment of Transportation and the Department 
of Homeland Security; and
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† HR 4348 EAS 
(B) to expedite the provision of Federal as-
sistance for public transportation systems for ac-
tivities relating to a major disaster or emergency 
declared by the President under the Robert T. 
Stafford Disaster Relief and Emergency Assist-
ance Act (42 U.S.C. 5121 et seq.) (referred to in 
this subsection as a ‘‘major disaster or emer-
gency’’). 
(2) AGREEMENT.—Not later than 180 days after 
the date of enactment of this Act, the Secretary of 
Transportation and the Secretary of Homeland Secu-
rity shall enter into a memorandum of agreement to 
coordinate the roles and responsibilities of the Depart-
ment of Transportation and the Department of 
Homeland Security in providing assistance for public 
transportation, including the provision of public 
transportation services and the repair and restoration 
of public transportation systems in areas for which 
the President has declared a major disaster or emer-
gency. 
(3) CONTENTS
OF
AGREEMENT.—The memo-
randum of agreement required under paragraph (2) 
shall— 
(A) provide for improved coordination and 
expeditious use of public transportation, as ap-
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† HR 4348 EAS 
propriate, in response to and recovery from a 
major disaster or emergency; 
(B) establish procedures to address— 
(i) issues that have contributed to 
delays in the reimbursement of eligible 
transportation-related expenses relating to a 
major disaster or emergency; 
(ii) any challenges identified in the re-
view under paragraph (4); and 
(iii) the coordination of assistance for 
public transportation provided under the 
Robert T. Stafford Disaster Relief and 
Emergency Assistance Act and section 5306 
of title 49, United States Code, as amended 
by this Act, as appropriate; and 
(C) provide for the development and dis-
tribution of clear guidelines for State, local, and 
tribal governments, including public transpor-
tation systems, relating to— 
(i) assistance available for public 
transportation systems for activities relat-
ing to a major disaster or emergency— 
(I) under the Robert T. Stafford 
Disaster Relief and Emergency Assist-
ance Act;
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† HR 4348 EAS 
(II) under section 5306 of title 49, 
United States Code, as amended by 
this Act; and 
(III) from other sources, including 
other Federal agencies; and 
(ii) reimbursement procedures that 
speed the process of— 
(I) applying for assistance under 
the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act and sec-
tion 5306 of title 49, United States 
Code, as amended by this Act; and 
(II) distributing assistance for 
public transportation systems under 
the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act and sec-
tion 5306 of title 49, United States 
Code, as amended by this Act. 
(4) AFTER
ACTION
REVIEW.—Before entering 
into a memorandum of agreement under paragraph 
(2), the Secretary of Transportation and the Sec-
retary of Homeland Security (acting through the Ad-
ministrator of the Federal Emergency Management 
Agency), in consultation with State, local, and tribal 
governments (including public transportation sys-
727 
† HR 4348 EAS 
tems) that have experienced a major disaster or emer-
gency, shall review after action reports relating to 
major disasters, emergencies, and exercises, to identify 
areas where coordination between the Department of 
Transportation and the Department of Homeland Se-
curity and the provision of public transportation 
services should be improved. 
(5) FACTORS FOR DECLARATIONS OF MAJOR DIS-
ASTERS AND EMERGENCIES.—The Administrator of 
the Federal Emergency Management Agency shall 
make available to State, local, and tribal govern-
ments, including public transportation systems, a de-
scription of the factors that the President considers in 
declaring a major disaster or emergency, including 
any pre-disaster emergency declaration policies. 
(6) BRIEFINGS.— 
(A) INITIAL BRIEFING.—Not later than 180 
days after the date of enactment of this Act, the 
Secretary of Transportation and the Secretary of 
Homeland Security shall jointly brief the Com-
mittee on Banking, Housing, and Urban Affairs 
and the Committee on Homeland Security and 
Governmental Affairs of the Senate on the memo-
randum of agreement required under paragraph 
(2).
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† HR 4348 EAS 
(B) QUARTERLY BRIEFINGS.—Each quarter 
of the 1-year period beginning on the date on 
which the Secretary of Transportation and the 
Secretary of Homeland Security enter into the 
memorandum of agreement required under para-
graph (2), the Secretary of Transportation and 
the Secretary of Homeland Security shall jointly 
brief the Committee on Banking, Housing, and 
Urban Affairs and the Committee on Homeland 
Security and Governmental Affairs of the Senate 
on the implementation of the memorandum of 
agreement. 
SEC. 20008. URBANIZED AREA FORMULA GRANTS. 
Section 5307 of title 49, United States Code, is amend-
ed 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; and 
‘‘(C) operating costs of equipment and fa-
cilities for use in public transportation in an ur-
banized area with a population of fewer than
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† HR 4348 EAS 
200,000 individuals, as determined by the Bu-
reau 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 transpor-
tation, excluding rail fixed guideway, in an urban-
ized area with a population of not fewer than 200,000 
individuals, as determined by the Bureau of the Cen-
sus— 
‘‘(A) for public transportation systems that 
operate 75 or fewer buses during peak service 
hours, in an amount not to exceed 75 percent of 
the share of the apportionment which is attrib-
utable 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 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. 
‘‘(3) TEMPORARY AND TARGETED ASSISTANCE.— 
‘‘(A) ELIGIBILITY.—The Secretary may 
make a grant under this section to finance the
730 
† HR 4348 EAS 
operating cost of equipment and facilities to a 
recipient for use in public transportation in an 
area that the Secretary determines has— 
‘‘(i) a population of not fewer than 
200,000 individuals, as determined by the 
Bureau of the Census; and 
‘‘(ii) a 3-month unemployment rate, as 
reported by the Bureau of Labor Statistics, 
that is— 
‘‘(I) greater than 7 percent; and 
‘‘(II) at least 2 percentage points 
greater than the lowest 3-month unem-
ployment rate for the area during the 
5-year period preceding the date of the 
determination. 
‘‘(B) AWARD OF GRANT.— 
‘‘(i) IN GENERAL.—Except as otherwise 
provided in this subparagraph, the Sec-
retary may make a grant under this section 
for not more than 2 consecutive fiscal years. 
‘‘(ii) ADDITIONAL
YEAR.—If, at the 
end of the second fiscal year following the 
date on which the Secretary makes a deter-
mination under subparagraph (A) with re-
spect to an area, the Secretary determines
731 
† HR 4348 EAS 
that the 3-month unemployment rate for the 
area is at least 2 percentage points greater 
than the unemployment rate for the area at 
the time the Secretary made the determina-
tion under subparagraph (A), the Secretary 
may make a grant to a recipient in the 
area for 1 additional consecutive fiscal 
year. 
‘‘(iii) EXCLUSION PERIOD.—Beginning 
on the last day of the last consecutive fiscal 
year for which a recipient receives a grant 
under this paragraph, the Secretary may 
not make a subsequent grant under this 
paragraph to the recipient for a number of 
fiscal years equal to the number of consecu-
tive fiscal years in which the recipient re-
ceived a grant under this paragraph. 
‘‘(C) LIMITATION.— 
‘‘(i) FIRST FISCAL YEAR.—For the first 
fiscal year following the date on which the 
Secretary makes a determination under 
subparagraph (A) with respect to an area, 
not more than 25 percent of the amount ap-
portioned to a designated recipient under 
section 5336 for the fiscal year shall be
732 
† HR 4348 EAS 
available for operating assistance for the 
area. 
‘‘(ii) SECOND
AND
THIRD
FISCAL 
YEARS.—For the second and third fiscal 
years following the date on which the Sec-
retary makes a determination under sub-
paragraph (A) with respect to an area, not 
more than 20 percent of the amount appor-
tioned to a designated recipient under sec-
tion 5336 for the fiscal year shall be avail-
able for operating assistance for the area. 
‘‘(D) PERIOD OF AVAILABILITY FOR OPER-
ATING
ASSISTANCE.—Operating 
assistance 
awarded under this paragraph shall be available 
for expenditure to a recipient in an area until 
the end of the second fiscal year following the 
date on which the Secretary makes a determina-
tion under subparagraph (A) with respect to the 
area, after which time any unexpended funds 
shall be available to the recipient for other eligi-
ble activities under this section. 
‘‘(E) CERTIFICATION.—The Secretary may 
make a grant for operating assistance under this 
paragraph for a fiscal year only if the recipient 
certifies that—
733 
† HR 4348 EAS 
‘‘(i) the recipient will maintain public 
transportation service levels at or above the 
current service level, which shall be dem-
onstrated by providing an equal or greater 
number of vehicle hours of service in the fis-
cal year than the number of vehicle hours of 
service provided in the preceding fiscal 
year; 
‘‘(ii) any non-Federal entity that pro-
vides funding to the recipient, including a 
State or local governmental entity, will 
maintain the tax rate or rate of allocations 
dedicated to public transportation at or 
above the rate for the preceding fiscal year; 
‘‘(iii) the recipient has allocated the 
maximum amount of funding under this 
section for preventive maintenance costs eli-
gible as a capital expense necessary to 
maintain the level and quality of service 
provided in the preceding fiscal year; and 
‘‘(iv) the recipient will not use funding 
under this section for new capital assets ex-
cept as necessary for the existing system to 
maintain or achieve a state of good repair, 
assure safety, or replace obsolete technology.
734 
† HR 4348 EAS 
‘‘(b) ACCESS TO JOBS PROJECTS.— 
‘‘(1) IN GENERAL.—A designated recipient shall 
expend not less than 3 percent of the amount appor-
tioned to the designated recipient under section 5336 
or an amount equal to the amount apportioned to the 
designated recipient in fiscal year 2011 to carry out 
section 5316 (as in effect for fiscal year 2011), which-
ever is less, to carry out a program to develop and 
maintain job access projects. Eligible projects may in-
clude— 
‘‘(A) a project relating to the development 
and maintenance of public transportation serv-
ices designed to transport eligible low-income in-
dividuals to and from jobs and activities related 
to their employment, including— 
‘‘(i) a public transportation project to 
finance planning, capital, and operating 
costs of providing access to jobs under this 
chapter; 
‘‘(ii) promoting public transportation 
by low-income workers, including the use of 
public transportation by workers with non-
traditional work schedules; 
‘‘(iii) promoting the use of public 
transportation vouchers for welfare recipi-
735 
† HR 4348 EAS 
ents and eligible low-income individuals; 
and 
‘‘(iv) promoting the use of employer- 
provided transportation, including the tran-
sit pass benefit program under section 132 
of the Internal Revenue Code of 1986; and 
‘‘(B) a transportation project designed to 
support the use of public transportation includ-
ing— 
‘‘(i) enhancements to existing public 
transportation service for workers with non- 
traditional hours or reverse commutes; 
‘‘(ii) guaranteed ride home programs; 
‘‘(iii) bicycle storage facilities; and 
‘‘(iv) projects that otherwise facilitate 
the provision of public transportation serv-
ices to employment opportunities. 
‘‘(2) PROJECT SELECTION AND PLAN DEVELOP-
MENT.—Each grant recipient under this subsection 
shall certify that— 
‘‘(A) the projects selected were included in a 
locally developed, coordinated public transit- 
human services transportation plan; 
‘‘(B) the plan was developed and approved 
through a process that included individuals with
736 
† HR 4348 EAS 
low incomes, representatives of public, private, 
and nonprofit transportation and human serv-
ices providers, and participation by the public; 
‘‘(C) services funded under this subsection 
are coordinated with transportation services 
funded by other Federal departments and agen-
cies to the maximum extent feasible; and 
‘‘(D) allocations of the grant to subrecipi-
ents, if any, are distributed on a fair and equi-
table basis. 
‘‘(3) COMPETITIVE
PROCESS
FOR
GRANTS
TO 
SUBRECIPIENTS.— 
‘‘(A) AREAWIDE SOLICITATIONS.—A recipi-
ent of funds apportioned under this subsection 
may conduct, in cooperation with the appro-
priate metropolitan planning organization, an 
areawide solicitation for applications for grants 
to the recipient and subrecipients under this sub-
section. 
‘‘(B) APPLICATION.—If the recipient elects 
to engage in a competitive process, recipients 
and subrecipients seeking to receive a grant from 
apportioned funds shall submit to the recipient 
an application in the form and in accordance
737 
† HR 4348 EAS 
with such requirements as the recipient shall es-
tablish. 
‘‘(c) 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 par-
ties, including private transportation providers, a 
proposed program of projects for activities to be fi-
nanced; 
‘‘(3) publish a proposed program of projects in 
a way that affected individuals, private transpor-
tation 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;
738 
† HR 4348 EAS 
‘‘(6) consider comments and views received, espe-
cially those of private transportation providers, in 
preparing the final program of projects; and 
‘‘(7) make the final program of projects available 
to the public. 
‘‘(d) 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 pre-
pared under subsection (c) of this section and a cer-
tification for that fiscal year that the recipient (in-
cluding 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 pro-
gram; 
‘‘(B) has or will have satisfactory con-
tinuing control over the use of equipment and fa-
cilities; 
‘‘(C) will maintain equipment and facili-
ties; 
‘‘(D) will ensure that, during non-peak 
hours for transportation using or involving a fa-
cility or equipment of a project financed under
739 
† HR 4348 EAS 
this section, a fare that is not more than 50 per-
cent 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 temporary or permanent dis-
ability (including an individual who is a 
wheelchair user or has semiambulatory ca-
pability), cannot use a public transpor-
tation service or a public transportation fa-
cility effectively without special 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 (c) of 
this section; 
‘‘(G) has available and will provide the re-
quired amounts as provided by subsection (e) of 
this section;
740 
† HR 4348 EAS 
‘‘(H) will comply with sections 5303 and 
5304; 
‘‘(I) has a locally developed process to so-
licit and consider 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, sub-
way stations, parking lots, and garages), in-
creased camera surveillance of an area in or ad-
jacent to that system, providing an emergency 
telephone line to contact law enforcement or se-
curity 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 se-
curity projects is not necessary; 
‘‘(K) in the case of a recipient for an ur-
banized area with a population of not fewer than
741 
† HR 4348 EAS 
200,000 individuals, as determined by the Bu-
reau of the Census— 
‘‘(i) will expend not less than 1 percent 
of the amount the recipient receives each fis-
cal year under this section for associated 
transit improvements, as defined in section 
5302; and 
‘‘(ii) will submit an annual report list-
ing projects carried out in the preceding fis-
cal year with those funds; and 
‘‘(L) will comply with section 5329(d); and 
‘‘(2) the Secretary accepts the certification. 
‘‘(e) 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 of the project. The recipient may pro-
vide additional local matching amounts. 
‘‘(2) OPERATING EXPENSES.—A grant for oper-
ating expenses under this section may not exceed 50 
percent of the net project cost of the project. 
‘‘(3) REMAINING COSTS.—Subject to paragraph 
(4), the remainder of the net project costs shall be pro-
vided—
742 
† HR 4348 EAS 
‘‘(A) in cash from non-Government sources 
other than revenues from providing public trans-
portation services; 
‘‘(B) from revenues from the sale of adver-
tising and concessions; 
‘‘(C) from an undistributed cash surplus, a 
replacement or depreciation cash fund or reserve, 
or new capital; 
‘‘(D) from amounts appropriated or other-
wise 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 
subparagraphs (D) and (E) of paragraph (3), 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 trans-
portation purposes. 
‘‘(f) UNDERTAKING PROJECTS IN ADVANCE.—
743 
† HR 4348 EAS 
‘‘(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 sec-
tion is in effect for the fiscal year to which the appli-
cation applies. The Secretary may not approve an 
application if the payment will be more than— 
‘‘(A) the recipient’s expected apportionment 
under section 5336 of this title if the total 
amount authorized to be appropriated for the fis-
cal year to carry out this section is appro-
priated; less
744 
† HR 4348 EAS 
‘‘(B) the maximum amount of the appor-
tionment 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 in-
terest earned and payable on bonds issued by the 
recipient to the extent proceeds of the bonds are 
expended in carrying out the part. 
‘‘(B) LIMITATION ON THE AMOUNT OF IN-
TEREST.—The amount of interest allowed under 
this paragraph may not be more than the most 
favorable financing terms reasonably available 
for the project at the time of borrowing. 
‘‘(C) CERTIFICATION.—The applicant shall 
certify, in a manner satisfactory to the Sec-
retary, that the applicant has shown reasonable 
diligence in seeking the most favorable financing 
terms. 
‘‘(g) 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
745 
† HR 4348 EAS 
audits the Secretary considers appropriate to es-
tablish whether the recipient has carried out— 
‘‘(i) the activities proposed under sub-
section (d) of this section in a timely and 
effective way and can continue to do so; and 
‘‘(ii) those activities and its certifi-
cations and has used amounts of the Gov-
ernment in the way required by law. 
‘‘(B) AUDITING PROCEDURES.—An audit of 
the use of amounts of the Government shall com-
ply with the auditing procedures of the Comp-
troller General. 
‘‘(2) TRIENNIAL REVIEW.—At least once every 3 
years, the Secretary shall review and evaluate com-
pletely the performance of a recipient in carrying out 
the recipient’s program, specifically referring to com-
pliance with statutory and administrative require-
ments and the extent to which actual program activi-
ties are consistent with the activities proposed under 
subsection (d) of this section and the planning process 
required under sections 5303, 5304, and 5305 of this 
title. To the extent practicable, the Secretary shall co-
ordinate such reviews with any related State or local 
reviews.
746 
† HR 4348 EAS 
‘‘(3) ACTIONS RESULTING FROM REVIEW, AUDIT, 
OR
EVALUATION.—The Secretary may take appro-
priate 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. 
‘‘(h) TREATMENT.—For purposes of this section, the 
United States Virgin Islands shall be treated as an urban-
ized area, as defined in section 5302. 
‘‘(i) PASSENGER FERRY GRANT PROGRAM.— 
‘‘(1) IN
GENERAL.—The Secretary may make 
grants under this subsection to recipients for pas-
senger ferry projects that are eligible for a grant 
under subsection (a). 
‘‘(2) GRANT REQUIREMENTS.—Except as other-
wise provided in this subsection, a grant under this 
subsection shall be subject to the same terms and con-
ditions 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. 
‘‘(4) GEOGRAPHICALLY CONSTRAINED AREAS.— 
Of the amounts made available to carry out this sub-
section, $10,000,000 shall be for capital grants relat-
ing to passenger ferries in areas with limited or no
747 
† HR 4348 EAS 
access to public transportation as a result of geo-
graphical constraints.’’. 
SEC. 20009. CLEAN FUEL GRANT PROGRAM. 
Section 5308 of title 49, United States Code, is amend-
ed to read as follows: 
‘‘§ 5308. Clean fuel grant program 
‘‘(a) DEFINITIONS.—In this section, the following defi-
nitions shall apply: 
‘‘(1) CLEAN FUEL BUS.—The term ‘clean fuel 
bus’ means a bus that is a clean fuel vehicle. 
‘‘(2) CLEAN
FUEL
VEHICLE.—The term ‘clean 
fuel vehicle’ means— 
‘‘(A) a passenger vehicle used to provide 
public transportation that the Administrator of 
the Environmental Protection Agency has cer-
tified sufficiently reduces energy consumption or 
reduces harmful emissions, including direct car-
bon emissions, when compared to a comparable 
standard vehicle; or 
‘‘(B) a zero emission bus used to provide 
public transportation. 
‘‘(3) DIRECT CARBON EMISSIONS.—The term ‘di-
rect carbon emissions’ means the quantity of direct 
greenhouse gas emissions from a vehicle, as deter-
748 
† HR 4348 EAS 
mined by the Administrator of the Environmental 
Protection Agency. 
‘‘(4) ELIGIBLE AREA.—The term ‘eligible area’ 
means an area that is— 
‘‘(A) 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 
‘‘(B) a maintenance area, as defined in sec-
tion 5303, for ozone or carbon monoxide. 
‘‘(5) ELIGIBLE
PROJECT.—The term ‘eligible 
project’ means a project or program of projects in an 
eligible area for— 
‘‘(A) acquiring or leasing clean fuel vehicles; 
‘‘(B) constructing or leasing facilities and 
related equipment for clean fuel vehicles; 
‘‘(C) constructing new public transportation 
facilities to accommodate clean fuel vehicles; or 
‘‘(D) rehabilitating or improving existing 
public transportation facilities to accommodate 
clean fuel vehicles. 
‘‘(6) RECIPIENT.—The term ‘recipient’ means— 
‘‘(A) for an eligible area that is an urban-
ized area with a population of fewer than 
200,000 individuals, as determined by the Bu-
749 
† HR 4348 EAS 
reau of the Census, the State in which the eligi-
ble area is located; and 
‘‘(B) for an eligible area not described in 
subparagraph (A), the designated recipient for 
the eligible area. 
‘‘(7) ZERO EMISSION BUS.—The term ‘zero emis-
sion bus’ means a clean fuel vehicle that produces no 
carbon or particulate matter. 
‘‘(b) AUTHORITY.—The Secretary may make grants to 
recipients to finance eligible projects under this section. 
‘‘(c) GRANT REQUIREMENTS.— 
‘‘(1) IN GENERAL.—A grant under this section 
shall be subject to the requirements of section 5307. 
‘‘(2) GOVERNMENT SHARE OF COSTS FOR CER-
TAIN PROJECTS.—Section 5323(j) applies to projects 
carried out under this section, unless the grant recipi-
ent requests a lower grant percentage. 
‘‘(3) COMBINATION OF FUNDING SOURCES.— 
‘‘(A) COMBINATION PERMITTED.—A project 
carried out under this section may receive fund-
ing under section 5307, or any other provision 
of law. 
‘‘(B) GOVERNMENT
SHARE.—Nothing in 
this paragraph may be construed to alter the
750 
† HR 4348 EAS 
Government share required under this section, 
section 5307, or any other provision of law. 
‘‘(d) MINIMUM AMOUNTS.—Of amounts made avail-
able by or appropriated under section 5338(a)(2)(D) in 
each fiscal year to carry out this section— 
‘‘(1) not less than 65 percent shall be made 
available to fund eligible projects relating to clean 
fuel buses; and 
‘‘(2) not less than 10 percent shall be made 
available for eligible projects relating to facilities and 
related equipment for clean fuel buses. 
‘‘(e) COMPETITIVE PROCESS.—The Secretary shall so-
licit grant applications and make grants for eligible 
projects on a competitive basis. 
‘‘(f) PRIORITY CONSIDERATION.—In making grants 
under this section, the Secretary shall give priority to 
projects relating to clean fuel buses that make greater reduc-
tions in energy consumption and harmful emissions, in-
cluding direct carbon emissions, than comparable standard 
buses or other clean fuel buses. 
‘‘(g) AVAILABILITY OF FUNDS.—Any amounts made 
available or appropriated to carry out this section— 
‘‘(1) shall remain available to an eligible project 
for 2 years after the fiscal year for which the amount 
is made available or appropriated; and
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† HR 4348 EAS 
‘‘(2) that remain unobligated at the end of the 
period described in paragraph (1) shall be added to 
the amount made available to an eligible project in 
the following fiscal year.’’. 
SEC. 
20010. 
FIXED 
GUIDEWAY 
CAPITAL 
INVESTMENT 
GRANTS. 
(a) IN GENERAL.—Section 5309 of title 49, United 
States Code, is amended to read as follows: 
‘‘§ 5309. Fixed guideway capital investment grants 
‘‘(a) DEFINITIONS.—In this section, the following defi-
nitions shall apply: 
‘‘(1) APPLICANT.—The term ‘applicant’ means a 
State or local governmental authority that applies for 
a grant under this section. 
‘‘(2) BUS RAPID TRANSIT PROJECT.—The term 
‘bus rapid transit project’ means a single route bus 
capital project— 
‘‘(A) if— 
‘‘(i) a majority of the project operates 
in a separated right-of-way dedicated for 
public transportation use during peak peri-
ods; or 
‘‘(ii) a substantial portion of the 
project operates in a separated right-of-way 
that is semi-dedicated for public transpor-
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† HR 4348 EAS 
tation use during peak periods and includes 
other physical elements that reduce public 
transportation vehicle travel time and in-
crease service reliability; 
‘‘(B) that represents a substantial invest-
ment 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 systems, including— 
‘‘(i) defined stations; 
‘‘(ii) traffic signal priority for public 
transportation vehicles; 
‘‘(iii) short headway bidirectional serv-
ices for a substantial part of weekdays and 
weekend days; and 
‘‘(iv) any other features the Secretary 
may determine are necessary to produce 
high-quality public transportation services 
that emulate the services provided by rail 
fixed guideway public transportation sys-
tems. 
‘‘(3) CORE CAPACITY IMPROVEMENT PROJECT.— 
The term ‘core capacity improvement project’ means 
a substantial corridor-based capital investment in an
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† HR 4348 EAS 
existing fixed guideway system that adds capacity 
and functionality. 
‘‘(4) 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 bus rapid transit project that is a 
minimum operable segment or an extension to 
an existing bus rapid transit system. 
‘‘(5) PROGRAM OF INTERRELATED PROJECTS.— 
The term ‘program of interrelated projects’ means the 
simultaneous development 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 improve-
ment projects. 
‘‘(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, includ-
ing the acquisition of real property, the initial acqui-
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† HR 4348 EAS 
sition 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, includ-
ing the acquisition of real property, the acquisition of 
rights-of-way, double tracking, signalization improve-
ments, electrification, expanding system platforms, 
acquisition of rolling stock, construction of infill sta-
tions, and such other capacity improvement projects 
as the Secretary determines are appropriate. 
‘‘(c) GRANT REQUIREMENTS.— 
‘‘(1) IN GENERAL.—The Secretary may make a 
grant under this section for new fixed guideway cap-
ital 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;
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† HR 4348 EAS 
‘‘(ii) satisfactory continuing control 
over the use of the equipment or facilities; 
and 
‘‘(iii) the technical and financial ca-
pacity to maintain new and existing equip-
ment and facilities. 
‘‘(2) CERTIFICATION.—An applicant that has 
submitted the certifications required under subpara-
graphs (A), (B), (C), and (H) of section 5307(d)(1) 
shall be deemed to have provided sufficient informa-
tion upon which the Secretary may make the deter-
minations required under this subsection. 
‘‘(3) TECHNICAL CAPACITY.—The Secretary shall 
use an expedited technical capacity review process for 
applicants that have recently and successfully com-
pleted at least 1 new bus rapid transit project, new 
fixed guideway capital project, or core capacity im-
provement 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 continues to have the staff expertise 
and other resources necessary to implement a 
new project.
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† HR 4348 EAS 
‘‘(4) RECIPIENT REQUIREMENTS.—A recipient of 
a grant awarded under this section shall be subject to 
all terms, conditions, requirements, and provisions 
that the Secretary determines to be necessary or ap-
propriate for purposes of this section. 
‘‘(d) NEW FIXED GUIDEWAY GRANTS.— 
‘‘(1) PROJECT DEVELOPMENT PHASE.— 
‘‘(A) ENTRANCE INTO PROJECT DEVELOP-
MENT
PHASE.—A new fixed guideway capital 
project shall enter into the project development 
phase when— 
‘‘(i) the applicant— 
‘‘(I) submits a letter to the Sec-
retary describing the project and re-
questing entry into the project develop-
ment 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 responds in writing 
to the applicant within 45 days whether the 
information provided is sufficient to enter 
into the project development phase, includ-
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† HR 4348 EAS 
ing, when necessary, a detailed description 
of any information deemed insufficient. 
‘‘(B) ACTIVITIES DURING PROJECT DEVEL-
OPMENT PHASE.—Concurrent with the analysis 
required to be made under the National Environ-
mental Policy Act of 1969 (42 U.S.C. 4321 et 
seq.), each applicant shall develop sufficient in-
formation to enable the Secretary to make find-
ings of project justification, policies and land use 
patterns that promote public transportation, and 
local financial commitment under this sub-
section. 
‘‘(C) COMPLETION OF PROJECT DEVELOP-
MENT ACTIVITIES REQUIRED.— 
‘‘(i) IN GENERAL.—Not later than 2 
years after the date on which a project en-
ters into the project development phase, the 
applicant shall complete the activities re-
quired to obtain a project rating under sub-
section (g)(2) and submit completed docu-
mentation 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 Secretary—
758 
† HR 4348 EAS 
‘‘(I) a reasonable plan for com-
pleting the activities required under 
this paragraph; and 
‘‘(II) an estimated time period 
within which the applicant will com-
plete 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 signifi-
cant impact, or a determination 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 
transportation plan required under section 
5303;
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† HR 4348 EAS 
‘‘(iii) is justified based on a com-
prehensive review of the project’s mobility 
improvements, environmental benefits, and 
cost-effectiveness, as measured by cost per 
rider; 
‘‘(iv) is supported by policies and land 
use patterns that promote public transpor-
tation, including plans for future land use 
and rezoning, and economic development 
around public transportation stations; and 
‘‘(v) is supported by an acceptable de-
gree of local financial commitment (includ-
ing evidence of stable and dependable fi-
nancing sources), as required under sub-
section (f). 
‘‘(B) DETERMINATION
THAT
PROJECT
IS 
JUSTIFIED.—In making a determination under 
subparagraph (A)(iii), the Secretary shall evalu-
ate, analyze, and consider— 
‘‘(i) the reliability of the forecasting 
methods used to estimate costs and utiliza-
tion made by the recipient and the contrac-
tors to the recipient; and
760 
† HR 4348 EAS 
‘‘(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 DEVELOP-
MENT
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 Sec-
retary describing the project and re-
questing entry into the project develop-
ment 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 responds in writing 
to the applicant within 45 days whether the 
information provided is sufficient to enter 
into the project development phase, includ-
ing when necessary a detailed description of 
any information deemed insufficient.
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† HR 4348 EAS 
‘‘(B) ACTIVITIES DURING PROJECT DEVEL-
OPMENT PHASE.—Concurrent with the analysis 
required to be made under the National Environ-
mental Policy Act of 1969 (42 U.S.C. 4321 et 
seq.), each applicant shall develop sufficient in-
formation to enable the Secretary to make find-
ings of project justification and local financial 
commitment under this subsection. 
‘‘(C) COMPLETION OF PROJECT DEVELOP-
MENT ACTIVITIES REQUIRED.— 
‘‘(i) IN GENERAL.—Not later than 2 
years after the date on which a project en-
ters into the project development phase, the 
applicant shall complete the activities re-
quired to obtain a project rating under sub-
section (g)(2) and submit completed docu-
mentation 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 Secretary— 
‘‘(I) a reasonable plan for com-
pleting the activities required under 
this paragraph; and
762 
† HR 4348 EAS 
‘‘(II) an estimated time period 
within which the applicant will com-
plete such activities. 
‘‘(2) ENGINEERING PHASE.— 
‘‘(A) IN
GENERAL.—A core capacity im-
provement project may advance into the engi-
neering phase upon completion of activities re-
quired under the National Environmental Policy 
Act of 1969 (42 U.S.C. 4321 et seq.), as dem-
onstrated by a record of decision with respect to 
the project, a finding that the project has no sig-
nificant impact, or a determination that the 
project is categorically excluded, only if the Sec-
retary 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 
transportation 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 ca-
pacity within the next 5 years;
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† HR 4348 EAS 
‘‘(iv) is justified based on a com-
prehensive review of the project’s mobility 
improvements, environmental benefits, and 
cost-effectiveness, as measured by cost per 
rider; and 
‘‘(v) is supported by an acceptable de-
gree of local financial commitment (includ-
ing evidence of stable and dependable fi-
nancing sources), as required under sub-
section (f). 
‘‘(B) DETERMINATION
THAT
PROJECT
IS 
JUSTIFIED.—In making a determination under 
subparagraph (A)(iv), the Secretary shall evalu-
ate, analyze, and consider— 
‘‘(i) the reliability of the forecasting 
methods used to estimate costs and utiliza-
tion made by the recipient and the contrac-
tors to the recipient; 
‘‘(ii) whether the project will ade-
quately address the capacity concerns in a 
corridor; 
‘‘(iii) whether the project will improve 
interconnectivity among existing systems; 
and
764 
† HR 4348 EAS 
‘‘(iv) whether the project will improve 
environmental 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 sub-
section (d)(2)(A)(v) or (e)(2)(A)(v), the Secretary 
shall require that— 
‘‘(A) the proposed project plan provides for 
the availability of contingency amounts that the 
Secretary determines to be reasonable to cover 
unanticipated cost increases or funding short-
falls; 
‘‘(B) each proposed local source of capital 
and operating financing is stable, reliable, and 
available within the proposed project timetable; 
and 
‘‘(C) local resources are available to recapi-
talize, maintain, and operate the overall existing 
and proposed public transportation system, in-
cluding essential feeder bus and other services 
necessary to achieve the projected ridership levels 
without requiring a reduction in existing public
765 
† HR 4348 EAS 
transportation services or level of service to oper-
ate the project. 
‘‘(2) CONSIDERATIONS.—In assessing the sta-
bility, reliability, and availability of proposed sources 
of 
local 
financing 
for 
purposes 
of 
subsection 
(d)(2)(A)(v) or (e)(2)(A)(v), the Secretary shall con-
sider— 
‘‘(A) the reliability of the forecasting meth-
ods 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 dedicated 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; 
and 
‘‘(E) the extent to which the project has a 
local financial commitment that exceeds the re-
quired non-Government share of the cost of the 
project. 
‘‘(g) PROJECT ADVANCEMENT AND RATINGS.— 
‘‘(1) PROJECT
ADVANCEMENT.—A new fixed 
guideway capital project or core capacity improve-
ment project proposed to be carried out using a grant
767 
† HR 4348 EAS 
under subsection (e)(2)(A)(iv), and the de-
gree of local financial commitment. 
‘‘(B) INDIVIDUAL RATINGS FOR EACH CRI-
TERION.—In rating a project under this para-
graph, the Secretary shall— 
‘‘(i) provide, in addition to the overall 
project rating under subparagraph (A), in-
dividual ratings for each of the criteria es-
tablished under subsection (d)(2)(A)(iii) or 
(e)(2)(A)(iv), as applicable; and 
‘‘(ii) give comparable, but not nec-
essarily 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 criterion 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 deter-
mination under subsection (d)(2) or (e)(2), as appli-
768 
† HR 4348 EAS 
cable, 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; 
‘‘(C) the applicant certifies that its existing 
public transportation system is in a state of good 
repair; and 
‘‘(D) the applicant meets any other require-
ments that the Secretary considers appropriate 
to carry out this subsection. 
‘‘(4) LETTERS OF INTENT AND EARLY SYSTEMS 
WORK AGREEMENTS.—In order to expedite a project 
under this subsection, the Secretary shall, to the max-
imum extent practicable, issue letters of intent and 
enter into early systems work agreements upon 
issuance of a record of decision for projects that re-
ceive an overall project rating of medium or better. 
‘‘(5) POLICY
GUIDANCE.—The Secretary shall 
issue policy guidance regarding the review and eval-
uation process and criteria—
769 
† HR 4348 EAS 
‘‘(A) not later than 180 days after the date 
of enactment of the Federal Public Transpor-
tation Act of 2012; and 
‘‘(B) each time the Secretary makes signifi-
cant 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 enactment of the Federal Public Transpor-
tation Act of 2012, the Secretary shall issue rules es-
tablishing an evaluation and rating process for— 
‘‘(A) new fixed guideway capital projects 
that is based on the results of project justifica-
tion, policies and land use patterns that promote 
public transportation, and local financial com-
mitment, 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 fi-
nancial 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.
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† HR 4348 EAS 
‘‘(h) PROGRAMS OF INTERRELATED PROJECTS.— 
‘‘(1) PROJECT DEVELOPMENT PHASE.—A feder-
ally 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 ad-
vance 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 dem-
onstrated 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 cat-
egorically 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 Environ-
mental Policy Act of 1969; 
‘‘(B) the project is adopted into the metro-
politan transportation plan required under sec-
tion 5303; 
‘‘(C) the program of interrelated projects in-
volves projects that have a logical connectivity to 
one another;
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† HR 4348 EAS 
‘‘(D) the program of interrelated projects, 
when evaluated as a whole, meets the require-
ments of subsection (d)(2) or (e)(2), as applica-
ble; 
‘‘(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 program of inter-
related projects within a reasonable time frame; 
and 
‘‘(F) the program of interrelated projects is 
supported by an acceptable degree of local finan-
cial 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 interrelated projects may not 
advance from the project development phase to 
the engineering phase, or from the engineering 
phase to the construction phase, unless the Sec-
retary determines that the program of inter-
related projects meets the applicable requirements 
of this section and there is a reasonable likeli-
hood that the program will continue to meet such 
requirements.
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† HR 4348 EAS 
‘‘(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 inter-
related 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, nu-
merical weight to each such criterion in cal-
culating the overall program rating. 
‘‘(iii) 
MEDIUM
RATING
NOT
RE-
QUIRED.—The Secretary shall not require 
that any single criterion described in para-
graph (2) meet or exceed a ‘medium’ rating 
in order to advance the program of inter-
related projects from one phase to another. 
‘‘(4) ANNUAL REVIEW.—
773 
† HR 4348 EAS 
‘‘(A) REVIEW
REQUIRED.—The Secretary 
shall annually review the program implementa-
tion 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 in-
cludes— 
‘‘(i) evidence of continued adequate 
funding; and 
‘‘(ii) an estimated time frame for com-
pleting the program of interrelated projects. 
‘‘(C) 
SATISFACTORY
PROGRESS
RE-
QUIRED.—If the Secretary 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 appli-
cant does not carry out the program of inter-
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† HR 4348 EAS 
related projects within a reasonable time, for 
reasons within the control of the applicant, the 
applicant shall repay all Federal funds provided 
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 originally de-
rived. 
‘‘(6) NON-FEDERAL
FUNDS.—Any non-Federal 
funds committed to a project in a program of inter-
related projects may be used to meet a non-Govern-
ment share requirement for any other project in the 
program of interrelated projects, if the 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 pro-
grams of interrelated projects exceeds the non-Govern-
ment share required under subsection (k).
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† HR 4348 EAS 
‘‘(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. 
‘‘(i) 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, 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. 
‘‘(j) LETTERS
OF INTENT, FULL FUNDING GRANT 
AGREEMENTS, 
AND
EARLY
SYSTEMS
WORK
AGREE-
MENTS.— 
‘‘(1) LETTERS OF INTENT.— 
‘‘(A) AMOUNTS
INTENDED
TO
BE
OBLI-
GATED.—The Secretary may issue a letter of in-
tent to an applicant announcing an intention to 
obligate, for a new fixed guideway 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
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† HR 4348 EAS 
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, United States Code, or an 
administrative 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 fund-
ing grant agreement. 
‘‘(B) CRITERIA.—The Secretary shall enter 
into a full funding grant agreement, based on the 
evaluations and ratings required under sub-
section (d), (e), or (h), as applicable, with each 
grantee receiving assistance for a new fixed 
guideway capital project or core capacity im-
provement project that has been rated as high, 
medium-high, or medium, in accordance with 
subsection (g)(2)(A) or (h)(3)(B), as applicable. 
‘‘(C) TERMS.—A full funding grant agree-
ment shall—
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† HR 4348 EAS 
‘‘(i) establish the terms of participa-
tion 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 authoriza-
tion; and 
‘‘(iv) make timely and efficient man-
agement 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 obli-
gates an amount of available budget author-
ity specified in law and may include a 
commitment, contingent on amounts to be 
specified in law in advance for commit-
ments under this paragraph, to obligate an 
additional amount from future available 
budget authority specified in law. 
‘‘(ii) STATEMENT OF CONTINGENT COM-
MITMENT.—The agreement shall state that
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† HR 4348 EAS 
the contingent commitment is not an obli-
gation of the Government. 
‘‘(iii) INTEREST AND OTHER FINANC-
ING COSTS.—Interest and other financing 
costs of efficiently carrying out a part of the 
project within a reasonable time are a cost 
of carrying out the project under a full 
funding grant agreement, except that eligi-
ble costs may not be more than the cost of 
the most favorable financing terms reason-
ably 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 SEG-
MENT.—The amount stipulated in an agree-
ment under this paragraph 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—
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† HR 4348 EAS 
‘‘(I) describes and analyzes the 
impacts of the new fixed guideway 
capital project or core capacity im-
provement project on public transpor-
tation services and public transpor-
tation ridership; 
‘‘(II) evaluates the consistency of 
predicted and actual project character-
istics and performance; and 
‘‘(III) identifies reasons for dif-
ferences between predicted and actual 
outcomes. 
‘‘(ii) INFORMATION
COLLECTION
AND 
ANALYSIS PLAN.— 
‘‘(I) SUBMISSION OF PLAN.—Ap-
plicants seeking a full funding grant 
agreement under this paragraph 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 capac-
ity improvement project and the accu-
racy of the forecasts prepared during 
the development of the project. Prepa-
ration of this plan shall be included in
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† HR 4348 EAS 
the full funding grant agreement 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 transpor-
tation service levels and ridership 
patterns, including origins and 
destinations, access modes, trip 
purposes, and rider characteris-
tics; 
‘‘(bb) documentation of the 
predicted scope, service levels, cap-
ital 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 infor-
mation on public transportation 
service levels and ridership pat-
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† HR 4348 EAS 
terns and information on the as- 
built scope, capital, and financing 
costs of the project; and 
‘‘(dd) analysis of the consist-
ency of predicted project charac-
teristics with actual outcomes. 
‘‘(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 current system, ac-
cording to the plan required under subparagraph 
(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—
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† HR 4348 EAS 
‘‘(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 agreement under this paragraph obli-
gates 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 acqui-
sition, timely procurement of system ele-
ments for which specifications 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 commit-
ments under this paragraph, to obligate an 
additional amount from future available 
budget authority specified in law.
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† HR 4348 EAS 
‘‘(iii) PERIOD
COVERED.—An early 
systems work agreement under this para-
graph shall cover the period of time the Sec-
retary 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 reasonable time 
are a cost of carrying out the agreement, ex-
cept 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 Sec-
retary, that the applicant has shown rea-
sonable diligence in seeking the most favor-
able financing terms. 
‘‘(v) 
FAILURE
TO
CARRY
OUT 
PROJECT.—If an applicant does not carry 
out the project for reasons within the con-
trol of the applicant, the applicant shall 
repay all Federal grant funds awarded for 
the project from all Federal funding sources,
784 
† HR 4348 EAS 
for all project activities, facilities, and 
equipment, plus reasonable interest and 
penalty charges allowable by law or estab-
lished by the Secretary in the early systems 
work agreement. 
‘‘(vi) 
CREDITING
OF
FUNDS
RE-
CEIVED.—Any funds received by the Gov-
ernment 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 improvement projects 
that contain contingent commitments to incur 
obligations in such amounts as the Secretary de-
termines are appropriate. 
‘‘(B) APPROPRIATION REQUIRED.—An obli-
gation may be made under this subsection only 
when amounts are appropriated for the obliga-
tion. 
‘‘(5) NOTIFICATION TO CONGRESS.—At least 30 
days before issuing a letter of intent, entering into a
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† HR 4348 EAS 
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 Com-
mittee on Appropriations of the Senate and the Com-
mittee on Transportation and Infrastructure and the 
Committee on Appropriations of the House of Rep-
resentatives 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 eval-
uations and ratings for the project. 
‘‘(k) GOVERNMENT SHARE OF NET CAPITAL PROJECT 
COST.— 
‘‘(1) IN GENERAL.—Based on engineering stud-
ies, studies of economic feasibility, and information 
on the expected use of equipment or facilities, the Sec-
retary shall estimate the net capital project cost. A 
grant for the project shall not exceed 80 percent of the 
net capital project cost. 
‘‘(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 improvement project evalu-
ated under subsection (d), (e), or (h) to include the 
cost of eligible activities not included in the originally
786 
† HR 4348 EAS 
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 Sec-
retary 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 esti-
mated 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 depreciation cash fund or reserve, or 
new capital. 
‘‘(5) LIMITATION
ON
STATUTORY
CONSTRUC-
TION.—Nothing in this section shall be construed as 
authorizing the Secretary to require a non-Federal fi-
787 
† HR 4348 EAS 
nancial 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 extension to a fixed guide-
way system may include the cost of rolling stock pre-
viously purchased if the applicant satisfies the Sec-
retary that only amounts other than amounts pro-
vided by the Government were used and that the pur-
chase was made for use on the extension. A refund or 
reduction of the remainder may be made only if a re-
fund of a proportional amount of the grant of the 
Government is made at the same time. 
‘‘(7) LIMITATION ON APPLICABILITY.—This sub-
section shall not apply to projects for which the Sec-
retary entered into a full funding grant agreement be-
fore the date of enactment of the Federal Public 
Transportation Act of 2012. 
‘‘(l) 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 governmental authority that carries out 
any part of a project described in this section without 
the aid of amounts of the Government and according 
to all applicable procedures and requirements if—
788 
† HR 4348 EAS 
‘‘(A) the State or local governmental au-
thority 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 in-
terest earned and payable on bonds issued by the 
State or local governmental authority to the ex-
tent proceeds of the bonds are expended in car-
rying out the part. 
‘‘(B) LIMITATION
ON
AMOUNT
OF
INTER-
EST.—The amount of interest under this para-
graph may not be more than the most favorable 
interest terms reasonably available for the project 
at the time of borrowing. 
‘‘(C) CERTIFICATION.—The applicant shall 
certify, in a manner satisfactory to the Sec-
retary, that the applicant has shown reasonable
789 
† HR 4348 EAS 
diligence in seeking the most favorable financing 
terms. 
‘‘(m) AVAILABILITY OF AMOUNTS.— 
‘‘(1) IN GENERAL.—An amount made available 
or appropriated for a new fixed guideway capital 
project or core capacity improvement project shall re-
main available to that project for 5 fiscal years, in-
cluding the fiscal year in which the amount is made 
available or appropriated. Any amounts that are un-
obligated 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. 
‘‘(n) REPORTS ON NEW FIXED GUIDEWAY AND CORE 
CAPACITY IMPROVEMENT PROJECTS.— 
‘‘(1) 
ANNUAL
REPORT
ON
FUNDING
REC-
OMMENDATIONS.—Not later than the first Monday in 
February of each year, the Secretary shall submit to 
the Committee on Banking, Housing, and Urban Af-
fairs and the Committee on Appropriations of the 
Senate and the Committee on Transportation and In-
790 
† HR 4348 EAS 
frastructure 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 subsections (d), (e), and (h), for each such 
project that is in project development, engineer-
ing, or has received a full funding grant agree-
ment; 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 STUD-
IES.—Not later than the first Monday in August of 
each year, the Secretary shall submit to the commit-
tees described in paragraph (1) a report containing 
a summary of the results of any studies conducted 
under subsection (j)(2)(E). 
‘‘(3) ANNUAL
GAO
REVIEW.—The Comptroller 
General of the United States shall— 
‘‘(A) conduct an annual review of—
791 
† HR 4348 EAS 
‘‘(i) the processes and procedures for 
evaluating, rating, and recommending new 
fixed guideway capital projects and core ca-
pacity improvement projects; and 
‘‘(ii) the Secretary’s implementation of 
such processes and procedures; and 
‘‘(B) report to Congress on the results of 
such review by May 31 of each year.’’. 
(b) PILOT PROGRAM FOR EXPEDITED PROJECT DELIV-
ERY.— 
(1) DEFINITIONS.—In this subsection the fol-
lowing definitions 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 sec-
tion, that has not entered into a full funding 
grant agreement with the Federal Transit Ad-
ministration 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 de-
livery established under this subsection.
793 
† HR 4348 EAS 
(4) GOVERNMENT
SHARE.—The Government 
share of the total cost of an eligible project that par-
ticipates in the program may not exceed 50 percent. 
(5) ELIGIBILITY.—A recipient that desires to 
participate in the program shall submit to the Sec-
retary an application that contains, at a minimum— 
(A) identification of an eligible project; 
(B) a schedule and finance plan for the con-
struction and operation of the eligible project; 
(C) an analysis of the efficiencies of the pro-
posed project development and delivery methods 
or innovative financing arrangement for the eli-
gible project; and 
(D) a certification that the recipient’s exist-
ing public transportation system is in a state of 
good repair. 
(6) SELECTION CRITERIA.—The Secretary may 
award a full funding grant agreement under this sub-
section if the Secretary determines that— 
(A) the recipient has completed planning 
and the activities required under the National 
Environmental Policy Act of 1969 (42 U.S.C. 
4321 et seq.); and
794 
† HR 4348 EAS 
(B) the recipient has the necessary legal, fi-
nancial, 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 re-
quire a recipient to conduct a study that— 
(i) describes and analyzes the impacts 
of the eligible project on public transpor-
tation services and public transportation 
ridership; 
(ii) describes and analyzes the consist-
ency of predicted and actual benefits and 
costs of the innovative project development 
and delivery methods or innovative financ-
ing for the eligible project; and 
(iii) identifies reasons for any dif-
ferences between predicted and actual out-
comes for the eligible project. 
(B) SUBMISSION
OF
REPORT.—Not later 
than 9 months after an eligible project selected to 
participate in the program begins revenue oper-
ations, the recipient shall submit to the Sec-
retary a report on the results of the study under 
subparagraph (A).
795 
† HR 4348 EAS 
SEC. 20011. FORMULA GRANTS FOR THE ENHANCED MOBIL-
ITY OF SENIORS AND INDIVIDUALS WITH DIS-
ABILITIES. 
Section 5310 of title 49, United States Code, is amend-
ed to read as follows: 
‘‘§ 5310. Formula grants for the enhanced mobility of 
seniors and individuals with disabilities 
‘‘(a) DEFINITIONS.—In this section, the following defi-
nitions 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, non-
profit organization, or operator of public transpor-
tation that receives a grant under this section indi-
rectly through a recipient. 
‘‘(b) GENERAL AUTHORITY.— 
‘‘(1) GRANTS.—The Secretary may make grants 
under this section to recipients for— 
‘‘(A) public transportation capital projects 
planned, designed, and carried out to meet the 
special needs of seniors and individuals with dis-
abilities when public transportation is insuffi-
cient, inappropriate, or unavailable;
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† HR 4348 EAS 
‘‘(B) public transportation projects that ex-
ceed the requirements of the Americans with Dis-
abilities Act of 1990 (42 U.S.C. 12101 et seq.); 
‘‘(C) public transportation projects that im-
prove access to fixed route service and decrease 
reliance by individuals with disabilities on com-
plementary paratransit; and 
‘‘(D) alternatives to public transportation 
that assist seniors and individuals with disabil-
ities with transportation. 
‘‘(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 sec-
tion. 
‘‘(B) ALLOCATION
TO
SUBRECIPIENTS.—A 
recipient of a grant under paragraph (1)(A) 
may allocate the amounts provided under the 
grant to— 
‘‘(i) a nonprofit organization; or 
‘‘(ii) a State or local governmental au-
thority that—
797 
† HR 4348 EAS 
‘‘(I) is approved by a State to co-
ordinate services for seniors and indi-
viduals with disabilities; or 
‘‘(II) certifies that there are no 
nonprofit organizations readily avail-
able in the area to provide the services 
described in paragraph (1)(A). 
‘‘(3) ADMINISTRATIVE EXPENSES.— 
‘‘(A) IN GENERAL.—A recipient may use 
not more than 10 percent of the amounts appor-
tioned to the recipient under this section to ad-
minister, plan, and provide technical assistance 
for a project funded under this section. 
‘‘(B) GOVERNMENT SHARE OF COSTS.—The 
Government share of the costs of administering a 
program carried out using funds under this sec-
tion shall be 100 percent. 
‘‘(4) ELIGIBLE CAPITAL EXPENSES.—The acqui-
sition of public transportation services is an eligible 
capital expense under this section. 
‘‘(5) COORDINATION.— 
‘‘(A) DEPARTMENT OF TRANSPORTATION.— 
To the maximum extent feasible, the Secretary 
shall coordinate activities under this section with
798 
† HR 4348 EAS 
related activities under other Federal depart-
ments and agencies. 
‘‘(B) OTHER FEDERAL AGENCIES AND NON-
PROFIT ORGANIZATIONS.—A State or local gov-
ernmental 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 transportation services described in 
clause (i). 
‘‘(6) PROGRAM OF PROJECTS.— 
‘‘(A) IN GENERAL.—Amounts made avail-
able to carry out this section may be used for 
transportation projects to assist in providing 
transportation services for seniors and individ-
uals with disabilities, if such transportation 
projects are included in a program of projects. 
‘‘(B) SUBMISSION.—A recipient shall annu-
ally submit a program of projects to the Sec-
retary.
799 
† HR 4348 EAS 
‘‘(C) ASSURANCE.—The program of projects 
submitted under subparagraph (B) shall contain 
an assurance that the program provides for the 
maximum feasible coordination of transportation 
services assisted under this section with trans-
portation services assisted by other Government 
sources. 
‘‘(7) MEAL DELIVERY FOR HOMEBOUND INDIVID-
UALS.—A public transportation service provider that 
receives assistance under this section or section 
5311(c) may coordinate and assist in regularly pro-
viding meal delivery service for homebound individ-
uals, 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—
800 
† HR 4348 EAS 
‘‘(i) the number of seniors and individ-
uals with disabilities in each such urban-
ized area; bears to 
‘‘(ii) the number of seniors and indi-
viduals with disabilities in all such urban-
ized 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 individ-
uals with disabilities in urbanized areas 
with a population of fewer than 200,000 in-
dividuals, as determined by the Bureau of 
the Census, in each State; bears to 
‘‘(ii) the number of seniors and indi-
viduals with disabilities in urbanized areas 
with a population of fewer than 200,000 in-
dividuals, as determined by the Bureau of 
the Census, in all States. 
‘‘(C) OTHER
THAN
URBANIZED
AREAS.— 
Twenty percent of the funds shall be apportioned 
among the States in the ratio that— 
‘‘(i) the number of seniors and individ-
uals with disabilities in other than urban-
ized areas in each State; bears to
801 
† HR 4348 EAS 
‘‘(ii) the number of seniors and indi-
viduals with disabilities in other than ur-
banized areas in all States. 
‘‘(2) AREAS SERVED BY PROJECTS.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B)— 
‘‘(i) funds apportioned under para-
graph (1)(A) shall be used for projects serv-
ing urbanized areas with a population of 
200,000 or more individuals, as determined 
by the Bureau of the Census; 
‘‘(ii) funds apportioned under para-
graph (1)(B) shall be used for projects serv-
ing urbanized areas with a population of 
fewer than 200,000 individuals, as deter-
mined by the Bureau of the Census; and 
‘‘(iii) funds apportioned under para-
graph (1)(C) shall be used for projects serv-
ing other than urbanized areas. 
‘‘(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
802 
† HR 4348 EAS 
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 state-
wide program for meeting the objectives of 
this section. 
‘‘(C) LIMITED
TO
ELIGIBLE
PROJECTS.— 
Any funds transferred pursuant to subparagraph 
(B) shall be made available 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 offi-
cials, publicly owned operators of public trans-
portation, and nonprofit providers in the area 
for which the amount was originally appor-
tioned. 
‘‘(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 Secretary.
803 
† HR 4348 EAS 
‘‘(2) OPERATING
ASSISTANCE.—A grant made 
under this section for operating assistance may not 
exceed an amount equal to 50 percent of the net oper-
ating costs of the project, as determined by the Sec-
retary. 
‘‘(3) REMAINDER OF NET COSTS.—The remain-
der of the net costs of a project carried out under this 
section— 
‘‘(A) may be provided from an undistrib-
uted cash surplus, 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 appro-
priated or otherwise made available— 
‘‘(i) to a department or agency of the 
Government (other than the Department of 
Transportation) that are eligible to be ex-
pended for transportation; or 
‘‘(ii) to carry out the Federal lands 
highways program under section 204 of title 
23, United States Code. 
‘‘(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
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U.S.C. 603(a)(5)(C)(vii)) on the use of grant funds 
for matching requirements shall not apply to Federal 
or State funds to be used for transportation purposes. 
‘‘(e) GRANT REQUIREMENTS.— 
‘‘(1) IN GENERAL.—A grant under this section 
shall be subject to the same requirements as a grant 
under section 5307, to the extent the Secretary deter-
mines appropriate. 
‘‘(2) CERTIFICATION REQUIREMENTS.— 
‘‘(A) PROJECT SELECTION AND PLAN DE-
VELOPMENT.—Before receiving a grant under 
this section, each recipient shall certify that— 
‘‘(i) the projects selected by the recipi-
ent are included in a locally developed, co-
ordinated public transit-human services 
transportation plan; 
‘‘(ii) the plan described in clause (i) 
was developed and approved through a 
process that included participation by sen-
iors, individuals with disabilities, represent-
atives of public, private, and nonprofit 
transportation and human services pro-
viders, and other members of the public; and 
‘‘(iii) to the maximum extent feasible, 
the services funded under this section will be
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† HR 4348 EAS 
coordinated with transportation services as-
sisted by other Federal departments and 
agencies, including any transportation ac-
tivities 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 cer-
tify that the funds are allocated on a fair and 
equitable basis. 
‘‘(f) COMPETITIVE PROCESS FOR GRANTS TO SUB-
RECIPIENTS.— 
‘‘(1) AREAWIDE SOLICITATIONS.—A recipient of 
funds apportioned under subsection (c)(1)(A) may 
conduct, in cooperation with the appropriate metro-
politan planning organization, an areawide solicita-
tion for applications for grants under this section. 
‘‘(2) STATEWIDE SOLICITATIONS.—A recipient of 
funds apportioned 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 en-
gage in a competitive process, a recipient or sub-
recipient seeking to receive a grant from funds appor-
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† HR 4348 EAS 
tioned under subsection (c) shall submit to the recipi-
ent making the election an application in such form 
and in accordance with such requirements as the re-
cipient 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 eligi-
ble 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 Transpor-
tation Act of 2012, the Secretary shall issue a final 
rule to establish performance measures for grants 
under this section. 
‘‘(2) MEASURES.—The performance measures es-
tablished under paragraph (1) shall require the collec-
tion of quantitative and qualitative information, as 
available, concerning— 
‘‘(A) modifications to the geographic cov-
erage of transportation service, the quality of 
transportation service, or service times that in-
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† HR 4348 EAS 
crease the availability of transportation services 
for seniors and individuals with disabilities; 
‘‘(B) ridership; 
‘‘(C) accessibility improvements; and 
‘‘(D) other measures, as the Secretary deter-
mines is appropriate. 
‘‘(3) TARGETS.—Not later than 3 months after 
the date on which the Secretary issues a final rule 
under paragraph (1), and each fiscal year thereafter, 
each recipient that receives Federal financial assist-
ance under this section shall establish performance 
targets in relation to the performance measures estab-
lished by the Secretary. 
‘‘(4) REPORTS.—Each recipient of Federal fi-
nancial assistance under this section shall submit to 
the Secretary an annual report that describes— 
‘‘(A) the progress of the recipient toward 
meeting the performance targets established 
under paragraph (3) for that fiscal year; and 
‘‘(B) the performance targets established by 
the recipient for the subsequent fiscal year.’’. 
SEC. 20012. FORMULA GRANTS FOR OTHER THAN URBAN-
IZED AREAS. 
(a) IN GENERAL.—Section 5311 of title 49, United 
States Code, is amended to read as follows:
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† HR 4348 EAS 
‘‘§ 5311. Formula grants for other than urbanized 
areas 
‘‘(a) DEFINITIONS.—As used in this section, the fol-
lowing definitions 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 paragraph (2), the Secretary may award grants 
under this section to recipients located in areas other 
than urbanized 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 activities that are di-
rected specifically at the needs of other than ur-
banized areas in the State; 
‘‘(B) public transportation capital projects;
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‘‘(C) operating costs of equipment and fa-
cilities for use in public transportation; and 
‘‘(D) the acquisition of public transpor-
tation services, including service agreements with 
private providers of public transportation serv-
ice. 
‘‘(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 pro-
viders 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 deter-
mines that— 
‘‘(i) the program provides a fair dis-
tribution of amounts in the State, including 
Indian reservations; and 
‘‘(ii) the program provides the max-
imum feasible coordination of public trans-
portation service assisted under this section
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† HR 4348 EAS 
with transportation service assisted by other 
Federal sources. 
‘‘(3) RURAL TRANSPORTATION ASSISTANCE PRO-
GRAM.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
carry out a rural transportation assistance pro-
gram in other than urbanized areas. 
‘‘(B) GRANTS
AND
CONTRACTS.—In car-
rying out this paragraph, the Secretary may use 
not more than 2 percent of the amount made 
available under section 5338(a)(2)(F) to make 
grants and contracts for transportation research, 
technical assistance, training, and related sup-
port services in other than urbanized areas. 
‘‘(C) PROJECTS OF A NATIONAL SCOPE.— 
Not more than 15 percent of the amounts avail-
able under subparagraph (B) may be used by the 
Secretary to carry out projects of a national 
scope, with the remaining balance provided to 
the States. 
‘‘(4) DATA COLLECTION.—Each recipient under 
this section shall submit an annual report to the Sec-
retary containing information on capital investment, 
operations, and service provided with funds received 
under this section, including—
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‘‘(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 facili-
ties; 
‘‘(F) vehicle revenue miles; and 
‘‘(G) ridership. 
‘‘(c) APPORTIONMENTS.— 
‘‘(1) PUBLIC TRANSPORTATION ON INDIAN RES-
ERVATIONS.—Of the amounts made available or ap-
propriated for each fiscal year pursuant to section 
5338(a)(2)(F) to carry out this paragraph, the fol-
lowing 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 established by the Secretary: 
‘‘(A) $10,000,000 shall be distributed on a 
competitive basis by the Secretary. 
‘‘(B) $20,000,000 shall be apportioned as 
formula grants, as provided in subsection (k). 
‘‘(2) 
APPALACHIAN
DEVELOPMENT
PUBLIC 
TRANSPORTATION ASSISTANCE PROGRAM.— 
‘‘(A) DEFINITIONS.—In this paragraph—
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‘‘(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 es-
tablished under subtitle IV of title 40. 
‘‘(B) IN
GENERAL.—The Secretary shall 
carry out a public transportation assistance pro-
gram in the Appalachian region. 
‘‘(C) APPORTIONMENT.—Of amounts made 
available or appropriated for each fiscal year 
under section 5338(a)(2)(F) to carry out this 
paragraph, the Secretary shall apportion funds 
to eligible recipients for any purpose eligible 
under this section, based on the guidelines estab-
lished under section 9.5(b) of the Appalachian 
Regional Commission Code. 
‘‘(D) SPECIAL RULE.—An eligible recipient 
may use amounts that cannot be used for oper-
ating expenses under this paragraph for a high-
way project if— 
‘‘(i) that use is approved, in writing, 
by the eligible recipient after appropriate 
notice and an opportunity for comment and
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† HR 4348 EAS 
appeal are provided to affected public trans-
portation providers; and 
‘‘(ii) the eligible recipient, in approv-
ing the use of amounts under this subpara-
graph, 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)(F) that are not 
apportioned under paragraph (1) or (2) shall be 
apportioned in accordance with this paragraph. 
‘‘(B) APPORTIONMENT
BASED
ON
LAND 
AREA
AND
POPULATION
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
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† HR 4348 EAS 
the land area in areas other than ur-
banized areas in that State and di-
vided by the land area in all areas 
other than urbanized areas in the 
United States, as shown by the most 
recent decennial census of population. 
‘‘(II) 
MAXIMUM
APPORTION-
MENT.—No State shall receive more 
than 5 percent of the amount appor-
tioned under subclause (I). 
‘‘(iii) POPULATION.—Each State shall 
receive an amount equal to 80 percent of the 
amount apportioned under clause (i), mul-
tiplied by the ratio of the population of 
areas other than urbanized areas in that 
State and divided by the population of all 
areas other than urbanized areas in the 
United States, as shown by the most recent 
decennial census of population. 
‘‘(C) APPORTIONMENT
BASED
ON
LAND 
AREA, VEHICLE REVENUE MILES, AND LOW-IN-
COME INDIVIDUALS IN NONURBANIZED AREAS.— 
‘‘(i) IN GENERAL.—16.85 percent of the 
amount described in subparagraph (A) shall
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† HR 4348 EAS 
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 ap-
portioned under clause (i), multiplied by 
the ratio of the land area in areas other 
than urbanized areas in that State and di-
vided by the land area in all areas other 
than urbanized areas in the United States, 
as shown by the most recent decennial cen-
sus of population. 
‘‘(iii) VEHICLE
REVENUE
MILES.— 
Subject to clause (v), each State shall re-
ceive an amount that is equal to 29.68 per-
cent of the amount apportioned under 
clause (i), multiplied by the ratio of vehicle 
revenue miles in areas other than urbanized 
areas in that State and divided by the vehi-
cle revenue miles in all areas other than ur-
banized areas in the United States, as de-
termined by national transit database re-
porting. 
‘‘(iv) 
LOW-INCOME
INDIVIDUALS.— 
Each State shall receive an amount that is
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† HR 4348 EAS 
equal to 40.64 percent of the amount appor-
tioned under clause (i), multiplied by the 
ratio of low-income individuals in areas 
other than urbanized areas in that State 
and divided by the number of low-income 
individuals in all areas other than urban-
ized 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 apportioned under clause (ii); 
or 
‘‘(II) more than 5 percent of the 
amount apportioned 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 Transportation, in an area other 
than an urbanized area. 
‘‘(e) USE
FOR
ADMINISTRATION, PLANNING, AND 
TECHNICAL ASSISTANCE.—The Secretary may allow a 
State to use not more than 15 percent of the amount appor-
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† HR 4348 EAS 
tioned under this section to administer this section and pro-
vide technical assistance to a subrecipient, including project 
planning, program and management development, coordi-
nation of public transportation programs, and research the 
State considers appropriate to promote effective delivery of 
public transportation to an area other than an urbanized 
area. 
‘‘(f) INTERCITY BUS TRANSPORTATION.— 
‘‘(1) IN GENERAL.—A State shall expend at least 
15 percent of the amount made available in each fis-
cal year to carry out a program to develop and sup-
port intercity bus transportation. Eligible activities 
under the program include— 
‘‘(A) planning and marketing for intercity 
bus transportation; 
‘‘(B) capital grants for intercity bus shel-
ters; 
‘‘(C) joint-use stops and depots; 
‘‘(D) operating grants through purchase-of- 
service agreements, user-side subsidies, and dem-
onstration projects; and 
‘‘(E) coordinating rural connections be-
tween small public transportation operations 
and intercity bus carriers.
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† HR 4348 EAS 
‘‘(2) CERTIFICATION.—A State does not have to 
comply with paragraph (1) of this subsection in a fis-
cal year in which the Governor of the State certifies 
to the Secretary, after consultation with affected 
intercity bus service providers, that the intercity bus 
service needs of the State are being met adequately. 
‘‘(g) ACCESS TO JOBS PROJECTS.— 
‘‘(1) IN
GENERAL.—Amounts made available 
under section 5338(a)(2)(F) may be used to carry out 
a program to develop and maintain job access 
projects. Eligible projects may include— 
‘‘(A) projects relating to the development 
and maintenance of public transportation serv-
ices designed to transport eligible low-income in-
dividuals to and from jobs and activities related 
to their employment, including— 
‘‘(i) public transportation projects to 
finance planning, capital, and operating 
costs of providing access to jobs under this 
chapter; 
‘‘(ii) promoting public transportation 
by low-income workers, including the use of 
public transportation by workers with non-
traditional work schedules;
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† HR 4348 EAS 
‘‘(iii) promoting the use of transit 
vouchers for welfare recipients and eligible 
low-income individuals; and 
‘‘(iv) promoting the use of employer- 
provided transportation, including the tran-
sit pass benefit program under section 132 
of the Internal Revenue Code of 1986; and 
‘‘(B) transportation projects designed to 
support the use of public transportation includ-
ing— 
‘‘(i) enhancements to existing public 
transportation service for workers with non- 
traditional hours or reverse commutes; 
‘‘(ii) guaranteed ride home programs; 
‘‘(iii) bicycle storage facilities; and 
‘‘(iv) projects that otherwise facilitate 
the provision of public transportation serv-
ices to employment opportunities. 
‘‘(2) PROJECT SELECTION AND PLAN DEVELOP-
MENT.—Each grant recipient under this subsection 
shall certify that— 
‘‘(A) the projects selected were included in a 
locally developed, coordinated public transit- 
human services transportation plan;
820 
† HR 4348 EAS 
‘‘(B) the plan was developed and approved 
through a process that included participation by 
low-income individuals, representatives of public, 
private, 
and 
nonprofit 
transportation 
and 
human services providers, and the public; 
‘‘(C) to the maximum extent feasible, serv-
ices funded under this subsection are coordinated 
with transportation services funded by other 
Federal departments and agencies; and 
‘‘(D) allocations of the grant to subrecipi-
ents, if any, are distributed on a fair and equi-
table basis. 
‘‘(3) COMPETITIVE
PROCESS
FOR
GRANTS
TO 
SUBRECIPIENTS.— 
‘‘(A) STATEWIDE SOLICITATIONS.—A State 
may conduct a statewide solicitation for applica-
tions for grants to recipients and subrecipients 
under this subsection. 
‘‘(B) APPLICATION.—If the State elects to 
engage in a competitive process, recipients and 
subrecipients seeking to receive a grant from ap-
portioned funds shall submit to the State an ap-
plication in the form and in accordance with 
such requirements as the State shall establish. 
‘‘(h) GOVERNMENT SHARE OF COSTS.—
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† HR 4348 EAS 
‘‘(1) CAPITAL PROJECTS.— 
‘‘(A) IN GENERAL.—Except as provided by 
subparagraph (B), a grant awarded under this 
section for a capital project or project adminis-
trative expenses shall be for 80 percent of the net 
costs of the project, as determined by the Sec-
retary. 
‘‘(B) EXCEPTION.—A State described in sec-
tion 120(b) of title 23 shall receive a Government 
share of the net costs in accordance with the for-
mula under that section. 
‘‘(2) OPERATING ASSISTANCE.— 
‘‘(A) IN GENERAL.—Except as provided by 
subparagraph (B), a grant made under this sec-
tion for operating assistance may not exceed 50 
percent of the net operating costs of the project, 
as determined by the Secretary. 
‘‘(B) EXCEPTION.—A State described in sec-
tion 120(b) of title 23 shall receive a Government 
share of the net operating costs equal to 62.5 per-
cent of the Government share provided for under 
paragraph (1)(B). 
‘‘(3) REMAINDER.—The remainder of net project 
costs—
822 
† HR 4348 EAS 
‘‘(A) may be provided from an undistrib-
uted cash surplus, 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 appro-
priated or otherwise made available to a depart-
ment or agency of the Government (other than 
the Department of Transportation) that are eli-
gible to be expended for transportation; and 
‘‘(C) notwithstanding subparagraph (B), 
may be derived from amounts made available to 
carry out the Federal lands highway program es-
tablished by section 204 of title 23. 
‘‘(4) USE OF CERTAIN FUNDS.—For purposes of 
paragraph (3)(B), the prohibitions on the use of funds 
for 
matching 
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. 
‘‘(5) LIMITATION ON OPERATING ASSISTANCE.— 
A State carrying out a program of operating assist-
ance under this section may not limit the level or ex-
tent of use of the Government grant for the payment 
of operating expenses.
823 
† HR 4348 EAS 
‘‘(i) TRANSFER OF FACILITIES AND EQUIPMENT.— 
With the consent 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 re-
cipient eligible to receive assistance under this chapter if 
the facility or equipment will continue to be used as re-
quired under this section. 
‘‘(j) RELATIONSHIP TO OTHER LAWS.— 
‘‘(1) IN GENERAL.—Section 5333(b) applies to 
this section if the Secretary of Labor utilizes a special 
warranty that provides a fair and equitable arrange-
ment to protect the interests of employees. 
‘‘(2) RULE OF CONSTRUCTION.—This subsection 
does not affect or discharge a responsibility of the 
Secretary of Transportation under a law of the 
United States. 
‘‘(k) FORMULA GRANTS FOR PUBLIC TRANSPORTATION 
ON INDIAN RESERVATIONS.— 
‘‘(1) APPORTIONMENT.— 
‘‘(A) IN
GENERAL.—Of the amounts de-
scribed in subsection (c)(1)(B)— 
‘‘(i) 50 percent of the total amount 
shall be apportioned so that each Indian 
tribe providing public transportation serv-
ice shall receive an amount equal to the
824 
† HR 4348 EAS 
total amount apportioned under this clause 
multiplied by the ratio of the number of ve-
hicle 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 apportioned equally among each In-
dian tribe providing at least 200,000 vehicle 
revenue miles of public transportation serv-
ice annually, as reported to the Secretary; 
and 
‘‘(iii) 25 percent of the total amount 
shall be apportioned among each Indian 
tribe providing public transportation on 
tribal lands on which more than 1,000 low- 
income individuals reside (as determined by 
the Bureau of the Census) so that each In-
dian tribe shall receive an amount equal to 
the total amount apportioned 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
825 
† HR 4348 EAS 
lands on which more than 1,000 low-income 
individuals reside. 
‘‘(B) LIMITATION.—No recipient shall re-
ceive more than $300,000 of the amounts appor-
tioned 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 In-
dian tribes receiving less than $300,000 in a fis-
cal year according to the formula specified in 
that clause. 
‘‘(D) LOW-INCOME INDIVIDUALS.—For pur-
poses of subparagraph (A)(iii), the term ‘low-in-
come 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 re-
cipient that is an Indian tribe may use funds appor-
tioned under this subsection to finance public trans-
826 
† HR 4348 EAS 
portation services provided by a non-tribal provider 
of public transportation that connects residents of 
tribal lands with surrounding communities, improves 
access to employment or healthcare, or otherwise ad-
dresses the mobility needs of tribal members.’’. 
(b) PILOT PROGRAM FOR INTERCITY BUS SERVICE.— 
(1) DEFINITIONS.—In this subsection, the fol-
lowing definitions shall apply: 
(A) ELIGIBLE PROJECT.—The term ‘‘eligible 
project’’ means an intercity bus project eligible 
under section 5311(f) of title 49, United States 
Code, as amended by this section, that includes 
both feeder service and an unsubsidized segment 
of the intercity bus network to which it connects. 
(B) FEEDER
SERVICE.—The term ‘‘feeder 
service’’ means the provision of intercity connec-
tions to allow for the coordination of rural con-
nections between small public transportation sys-
tems and providers of intercity bus service. 
(C) INTERCITY
BUS
SERVICE.—The term 
‘‘intercity bus service’’ means regularly scheduled 
bus service provided by private operators for the 
general public that operates with limited stops 
over fixed routes connecting two or more urban 
areas not in close proximity, that has the capac-
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† HR 4348 EAS 
ity for transporting baggage carried by pas-
sengers, and that makes meaningful connections 
with scheduled intercity bus service to more dis-
tant points, if such service is available. 
(D) SECRETARY.—The term ‘‘Secretary’’ 
means the Secretary of Transportation. 
(2) IN-KIND MATCH.—The Secretary shall estab-
lish a pilot program under which the Secretary may 
allow not more than 20 States using funding pro-
vided to carry out section 5311(f) of title 49, United 
States Code, as amended by this section, to support 
intercity bus service using the capital costs of unsub-
sidized service provided by a private operator as in- 
kind match for an eligible project. 
(3) STUDY.—The Comptroller General of the 
United States shall conduct a study not later than 1 
year after the date of enactment of this Act to deter-
mine the efficacy of the pilot program in improving 
and expanding intercity bus service and the effect of 
the pilot program on public transportation providers 
and the commuting public. 
SEC. 20013. RESEARCH, DEVELOPMENT, DEMONSTRATION, 
AND DEPLOYMENT PROJECTS. 
Section 5312 of title 49, United States Code, is amend-
ed to read as follows:
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† HR 4348 EAS 
‘‘§ 5312. Research, development, demonstration, and 
deployment projects 
‘‘(a) RESEARCH, DEVELOPMENT, DEMONSTRATION, 
AND DEPLOYMENT PROJECTS.— 
‘‘(1) IN
GENERAL.—The Secretary may make 
grants and enter into contracts, cooperative agree-
ments, and other agreements for research, develop-
ment, demonstration, and deployment projects, and 
evaluation of research and technology of national sig-
nificance to public transportation, that the Secretary 
determines will improve public transportation. 
‘‘(2) AGREEMENTS.—In order to carry out para-
graph (1), the Secretary may make grants to and 
enter into contracts, cooperative agreements, and 
other agreements with— 
‘‘(A) departments, agencies, and instrumen-
talities of the Government; 
‘‘(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, con-
tract, cooperative agreement, or other agreement 
under this section, an entity described in para-
829 
† HR 4348 EAS 
graph (2) shall submit an application to the Sec-
retary. 
‘‘(B) FORM AND CONTENTS.—An applica-
tion under subparagraph (A) shall be in such 
form and contain such information as the Sec-
retary 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 fu-
ture innovation and development, the poten-
tial for deployment, and benefits to riders 
and public transportation; and 
‘‘(iii) the short- and long-term funding 
requirements 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 agree-
ment, or other agreement 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.
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‘‘(2) PROJECT ELIGIBILITY.—A public transpor-
tation research project that receives assistance under 
paragraph (1) shall focus on— 
‘‘(A) providing more effective and efficient 
public transportation service, including services 
to— 
‘‘(i) seniors; 
‘‘(ii) individuals with disabilities; and 
‘‘(iii) low-income individuals; 
‘‘(B) mobility management and improve-
ments and travel management systems; 
‘‘(C) data and communication system ad-
vancements; 
‘‘(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 
advancement; 
‘‘(J) construction and project management;
831 
† HR 4348 EAS 
‘‘(K) alternative fuels; 
‘‘(L) the environment and energy efficiency; 
‘‘(M) safety improvements; or 
‘‘(N) any other area that the Secretary de-
termines 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 agree-
ment, or other agreement 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 effective delivery of public transportation serv-
ices, including through technology and technological 
capacity improvements. 
‘‘(2) PROJECT ELIGIBILITY.—A public transpor-
tation innovation and development project that re-
ceives assistance under paragraph (1) shall focus 
on— 
‘‘(A) the development of public transpor-
tation research projects that received assistance 
under subsection (b) that the Secretary deter-
mines were successful;
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† HR 4348 EAS 
‘‘(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 con-
trol and capacity improvements; or 
‘‘(H) any other area that the Secretary de-
termines is important to advance the interests of 
public transportation. 
‘‘(d) DEMONSTRATION, DEPLOYMENT, AND EVALUA-
TION.— 
‘‘(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 agreement with an entity de-
scribed in paragraph (2) to promote the early deploy-
ment 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
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‘‘(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 demonstra-
tion of innovation. 
‘‘(3) PROJECT ELIGIBILITY.—A project that re-
ceives assistance under paragraph (1) shall seek to 
build on successful research, innovation, and develop-
ment efforts to facilitate— 
‘‘(A) the deployment of research and tech-
nology development resulting from private efforts 
or federally funded efforts; and 
‘‘(B) the implementation of research and 
technology development to advance the interests 
of public transportation. 
‘‘(4) EVALUATION.—Not later than 2 years after 
the date on which a project receives assistance under 
paragraph (1), the Secretary shall conduct a com-
prehensive 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. 
‘‘(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
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† HR 4348 EAS 
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— 
‘‘(1) a description of each project that received 
assistance under this section during the preceding fis-
cal 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 as-
sistance 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-Gov-
ernment share of the cost of a project carried out 
under this section may be derived from in-kind con-
tributions. 
‘‘(3) FINANCIAL BENEFIT.—If the Secretary de-
termines that there would be a clear and direct finan-
cial benefit to an entity under a grant, contract, co-
835 
† HR 4348 EAS 
operative agreement, or other agreement under this 
section, the Secretary shall establish a Government 
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. 20014. TECHNICAL ASSISTANCE AND STANDARDS DE-
VELOPMENT. 
Section 5314 of title 49, United States Code, is amend-
ed to read as follows: 
‘‘§ 5314. Technical assistance and standards develop-
ment 
‘‘(a) TECHNICAL ASSISTANCE AND STANDARDS DE-
VELOPMENT.— 
‘‘(1) IN
GENERAL.—The Secretary may make 
grants and enter into contracts, cooperative agree-
ments, and other agreements (including agreements 
with departments, agencies, and instrumentalities of 
the Government) to carry out activities that the Sec-
retary 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.
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‘‘(2) ELIGIBLE ACTIVITIES.—The activities car-
ried out under paragraph (1) may include— 
‘‘(A) technical assistance; and 
‘‘(B) the development of standards and best 
practices by the public transportation industry. 
‘‘(b) TECHNICAL ASSISTANCE CENTERS.— 
‘‘(1) DEFINITION.—In this subsection, the term 
‘eligible entity’ means a nonprofit organization, an 
institution of higher education, or a technical or com-
munity college. 
‘‘(2) IN
GENERAL.—The Secretary may make 
grants to and enter into contracts, cooperative agree-
ments, and other agreements with eligible entities to 
administer centers to provide technical assistance, in-
cluding— 
‘‘(A) the development of tools and guidance; 
and 
‘‘(B) the dissemination of best practices. 
‘‘(3) COMPETITIVE
PROCESS.—The Secretary 
may make grants and enter into contracts, coopera-
tive agreements, and other agreements under para-
graph (2) through a competitive process on a biennial 
basis for technical assistance in each of the following 
categories:
837 
† HR 4348 EAS 
‘‘(A) Human services transportation coordi-
nation, including— 
‘‘(i) transportation for seniors; 
‘‘(ii) transportation for individuals 
with disabilities; and 
‘‘(iii) coordination of local resources 
and programs to assist low-income individ-
uals and veterans in gaining access to 
training and employment opportunities. 
‘‘(B) Transit-oriented development. 
‘‘(C) Transportation equity with regard to 
the impact that transportation planning, invest-
ment, and operations have on low-income and 
minority individuals. 
‘‘(D) Financing mechanisms, including— 
‘‘(i) public-private partnerships; 
‘‘(ii) bonding; and 
‘‘(iii) State and local capacity build-
ing. 
‘‘(E) Any other activity that the Secretary 
determines is important to advance the interests 
of public transportation. 
‘‘(4) EXPERTISE
OF
TECHNICAL
ASSISTANCE 
CENTERS.—In selecting an eligible entity to admin-
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† HR 4348 EAS 
ister a center under this subsection, the Secretary 
shall consider— 
‘‘(A) the demonstrated subject matter exper-
tise of the eligible entity; and 
‘‘(B) the capacity of the eligible entity to 
deliver technical assistance on a regional or na-
tionwide basis. 
‘‘(5) PARTNERSHIPS.—An eligible entity may 
partner with another eligible entity to provide tech-
nical assistance under this subsection. 
‘‘(c) GOVERNMENT SHARE OF COSTS.— 
‘‘(1) IN GENERAL.—The Government share of the 
cost of an activity under this section may not exceed 
80 percent. 
‘‘(2) NON-GOVERNMENT SHARE.—The non-Gov-
ernment share of the cost of an activity under this 
section may be derived from in-kind contributions.’’. 
SEC. 20015. BUS TESTING FACILITIES. 
Section 5318 of title 49, United States Code, is amend-
ed to read as follows: 
‘‘§ 5318. Bus testing facilities 
‘‘(a) FACILITIES.—The Secretary shall certify not 
more than 4 comprehensive facilities for testing new bus 
models for maintainability, reliability, safety, performance
839 
† HR 4348 EAS 
(including braking performance), structural integrity, fuel 
economy, emissions, and noise. 
‘‘(b) COOPERATIVE AGREEMENT.—The Secretary shall 
enter into a cooperative agreement with not more than 4 
qualified entities to test public transportation vehicles 
under subsection (a). 
‘‘(c) FEES.—An entity that operates and maintains 
a facility certified under subsection (a) shall establish and 
collect reasonable fees for the testing of vehicles at the facil-
ity. The Secretary must approve the fees. 
‘‘(d) AVAILABILITY OF AMOUNTS TO PAY FOR TEST-
ING.— 
‘‘(1) IN
GENERAL.—The Secretary shall enter 
into a cooperative agreement with an entity that op-
erates and maintains a facility certified under sub-
section (a), under which 80 percent of the fee for test-
ing a vehicle at the facility may be available from 
amounts apportioned to a recipient under section 
5336 or from amounts appropriated to carry out this 
section. 
‘‘(2) PROHIBITION.—An entity that operates and 
maintains a facility described in subsection (a) shall 
not have a financial interest in the outcome of the 
testing carried out at the facility.
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‘‘(e) ACQUIRING NEW BUS MODELS.—Amounts appro-
priated or made available under this chapter may be obli-
gated or expended to acquire a new bus model only if— 
‘‘(1) a bus of that model has been tested at a fa-
cility described in subsection (a); and 
‘‘(2) the bus tested under paragraph (1) met— 
‘‘(A) performance standards for maintain-
ability, reliability, performance (including brak-
ing performance), structural integrity, fuel econ-
omy, emissions, and noise, as established by the 
Secretary by rule; and 
‘‘(B) the minimum safety performance 
standards established by the Secretary pursuant 
to section 5329(b).’’. 
SEC. 20016. PUBLIC TRANSPORTATION WORKFORCE DEVEL-
OPMENT AND HUMAN RESOURCE PROGRAMS. 
Section 5322 of title 49, United States Code, is amend-
ed to read as follows: 
‘‘§ 5322. Public transportation workforce development 
and human resource programs 
‘‘(a) IN GENERAL.—The Secretary may undertake, or 
make grants or enter into contracts for, activities that ad-
dress human resource needs as the needs apply to public 
transportation activities, including activities that— 
‘‘(1) educate and train employees;
841 
† HR 4348 EAS 
‘‘(2) develop the public transportation workforce 
through career outreach and preparation; 
‘‘(3) develop a curriculum for workforce develop-
ment; 
‘‘(4) conduct outreach programs to increase mi-
nority and female employment in public transpor-
tation; 
‘‘(5) conduct research on public transportation 
personnel and training needs; 
‘‘(6) provide training and assistance for minor-
ity business opportunities; 
‘‘(7) advance training relating to maintenance of 
alternative energy, energy efficiency, or zero emission 
vehicles and facilities used in public transportation; 
and 
‘‘(8) address a current or projected workforce 
shortage in an area that requires technical expertise. 
‘‘(b) FUNDING.— 
‘‘(1) URBANIZED
AREA
FORMULA
GRANTS.—A 
recipient or subrecipient of funding under section 
5307 shall expend not less than 0.5 percent of such 
funding for activities consistent with subsection (a). 
‘‘(2) WAIVER.—The Secretary may waive the re-
quirement under paragraph (1) with respect to a re-
842 
† HR 4348 EAS 
cipient or subrecipient if the Secretary determines 
that the recipient or subrecipient— 
‘‘(A) has an adequate workforce development 
program; or 
‘‘(B) has partnered with a local educational 
institution in a manner that sufficiently pro-
motes or addresses workforce development and 
human resource needs. 
‘‘(c) INNOVATIVE PUBLIC TRANSPORTATION WORK-
FORCE DEVELOPMENT PROGRAM.— 
‘‘(1) PROGRAM
ESTABLISHED.—The Secretary 
shall establish a competitive grant program to assist 
the development of innovative activities eligible for as-
sistance under subsection (a). 
‘‘(2) SELECTION OF RECIPIENTS.—To the max-
imum extent feasible, the Secretary shall select recipi-
ents that— 
‘‘(A) are geographically diverse; 
‘‘(B) address the workforce and human re-
sources needs of large public transportation pro-
viders; 
‘‘(C) address the workforce and human re-
sources needs of small public transportation pro-
viders;
843 
† HR 4348 EAS 
‘‘(D) address the workforce and human re-
sources needs of urban public transportation pro-
viders; 
‘‘(E) address the workforce and human re-
sources needs of rural public transportation pro-
viders; 
‘‘(F) advance training related to mainte-
nance of alternative energy, energy efficiency, or 
zero emission vehicles and facilities used in pub-
lic transportation; 
‘‘(G) target areas with high rates of unem-
ployment; and 
‘‘(H) address current or projected workforce 
shortages in areas that require technical exper-
tise. 
‘‘(d) GOVERNMENT’S SHARE OF COSTS.—The Govern-
ment share of the cost of a project carried out using a grant 
under this section shall be 50 percent. 
‘‘(e) REPORT.—Not later than 2 years after the date 
of enactment of the Federal Public Transportation Act of 
2012, the Secretary shall submit to the Committee on Bank-
ing, Housing, and Urban Affairs of the Senate and the 
Committee on Transportation and Infrastructure of the 
House of Representatives a report concerning the measur-
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† HR 4348 EAS 
able outcomes and impacts of the programs funded under 
this section.’’. 
SEC. 20017. GENERAL PROVISIONS. 
Section 5323 of title 49, United States Code, is amend-
ed to read as follows: 
‘‘§ 5323. General provisions 
‘‘(a) INTERESTS IN PROPERTY.— 
‘‘(1) IN
GENERAL.—Financial assistance pro-
vided under this chapter to a State or a local govern-
mental authority may be used to acquire an interest 
in, or to buy property of, a private company engaged 
in public transportation, for a capital project for 
property acquired from a private company engaged 
in public transportation after July 9, 1964, or to op-
erate a public transportation facility or equipment in 
competition with, or in addition to, transportation 
service provided by an existing public transportation 
company, only if— 
‘‘(A) the Secretary determines that such fi-
nancial assistance is essential to a program of 
projects required under sections 5303 and 5304; 
‘‘(B) the Secretary determines that the pro-
gram provides for the participation of private 
companies engaged in public transportation to 
the maximum extent feasible; and
845 
† HR 4348 EAS 
‘‘(C) just compensation under State or local 
law will be paid to the company for its franchise 
or property. 
‘‘(2) LIMITATION.—A governmental authority 
may not use financial assistance of the United States 
Government to acquire land, equipment, or a facility 
used in public transportation from another govern-
mental authority in the same geographic area. 
‘‘(b) RELOCATION AND REAL PROPERTY REQUIRE-
MENTS.—The Uniform Relocation Assistance and Real 
Property Acquisition Policies Act of 1970 (42 U.S.C. 4601 
et seq.) shall apply to financial assistance for capital 
projects under this chapter. 
‘‘(c) CONSIDERATION OF ECONOMIC, SOCIAL, AND EN-
VIRONMENTAL INTERESTS.— 
‘‘(1) COOPERATION AND CONSULTATION.—In car-
rying out the goal described in section 5301(c)(2), the 
Secretary shall cooperate and consult with the Sec-
retary of the Interior and the Administrator of the 
Environmental Protection Agency on each project 
that may have a substantial impact on the environ-
ment. 
‘‘(2) COMPLIANCE
WITH
NEPA.—The National 
Environmental Policy Act of 1969 (42 U.S.C. 4321 et
846 
† HR 4348 EAS 
seq.) shall apply to financial assistance for capital 
projects under this chapter. 
‘‘(d) CORRIDOR PRESERVATION.— 
‘‘(1) IN GENERAL.—The Secretary may assist a 
recipient in acquiring right-of-way before the comple-
tion of the environmental reviews for any project that 
may use the right-of-way if the acquisition is other-
wise permitted under Federal law. The Secretary may 
establish restrictions on such an acquisition as the 
Secretary determines to be necessary and appropriate. 
‘‘(2) ENVIRONMENTAL
REVIEWS.—Right-of-way 
acquired under this subsection may not be developed 
in anticipation of the project until all required envi-
ronmental reviews for the project have been completed. 
‘‘(e) CONDITION ON CHARTER BUS TRANSPORTATION 
SERVICE.— 
‘‘(1) AGREEMENTS.—Financial assistance under 
this chapter may be used to buy or operate a bus only 
if the applicant, governmental authority, or publicly 
owned operator that receives the assistance agrees 
that, except as provided in the agreement, the govern-
mental authority or an operator of public transpor-
tation for the governmental authority will not provide 
charter bus transportation service outside the urban 
area in which it provides regularly scheduled public
847 
† HR 4348 EAS 
transportation service. An agreement shall provide for 
a fair arrangement the Secretary of Transportation 
considers appropriate to ensure that the assistance 
will not enable a governmental authority or an oper-
ator for a governmental authority to foreclose a pri-
vate operator from providing intercity charter bus 
service if the private operator can provide the service. 
‘‘(2) VIOLATIONS.— 
‘‘(A) INVESTIGATIONS.—On receiving a 
complaint about a violation of the agreement re-
quired under paragraph (1), the Secretary shall 
investigate and decide whether a violation has 
occurred. 
‘‘(B) ENFORCEMENT OF AGREEMENTS.—If 
the Secretary decides that a violation has oc-
curred, the Secretary shall correct the violation 
under terms of the agreement. 
‘‘(C) ADDITIONAL REMEDIES.—In addition 
to any remedy specified in the agreement, the 
Secretary shall bar a recipient or an operator 
from receiving Federal transit assistance in an 
amount the Secretary considers appropriate if 
the Secretary finds a pattern of violations of the 
agreement. 
‘‘(f) BOND PROCEEDS ELIGIBLE FOR LOCAL SHARE.—
848 
† HR 4348 EAS 
‘‘(1) USE
AS
LOCAL
MATCHING
FUNDS.—Not-
withstanding any other provision of law, a recipient 
of assistance under section 5307, 5309, or 5337 may 
use the proceeds from the issuance of revenue bonds as 
part of the local matching funds for a capital project. 
‘‘(2) MAINTENANCE OF EFFORT.—The Secretary 
shall approve of the use of the proceeds from the 
issuance of revenue bonds for the remainder of the net 
project cost only if the Secretary finds that the aggre-
gate amount of financial support for public transpor-
tation in the urbanized area provided by the State 
and affected local governmental authorities during the 
next 3 fiscal years, as programmed in the State 
transportation improvement program under section 
5304, is not less than the aggregate amount provided 
by the State and affected local governmental authori-
ties in the urbanized area during the preceding 3 fis-
cal years. 
‘‘(3) DEBT SERVICE RESERVE.—The Secretary 
may reimburse an eligible recipient for deposits of 
bond proceeds in a debt service reserve that the recipi-
ent establishes pursuant to section 5302(3)(J) from 
amounts made available to the recipient under section 
5309. 
‘‘(g) SCHOOLBUS TRANSPORTATION.—
849 
† HR 4348 EAS 
‘‘(1) AGREEMENTS.—Financial assistance under 
this chapter may be used for a capital project, or to 
operate public transportation equipment or a public 
transportation facility, only if the applicant agrees 
not to provide schoolbus transportation that exclu-
sively transports students and school personnel in 
competition with a private schoolbus operator. This 
subsection does not apply— 
‘‘(A) to an applicant that operates a school 
system in the area to be served and a separate 
and exclusive schoolbus program for the school 
system; and 
‘‘(B) unless a private schoolbus operator can 
provide adequate transportation that complies 
with applicable safety standards at reasonable 
rates. 
‘‘(2) VIOLATIONS.—If the Secretary finds that an 
applicant, governmental authority, or publicly owned 
operator has violated the agreement required under 
paragraph (1), the Secretary shall bar a recipient or 
an operator from receiving Federal transit assistance 
in an amount the Secretary considers appropriate. 
‘‘(h) BUYING BUSES UNDER OTHER LAWS.—Sub-
sections (e) and (g) of this section apply to financial assist-
ance to buy a bus under sections 133 and 142 of title 23.
850 
† HR 4348 EAS 
‘‘(i) GRANT AND LOAN PROHIBITIONS.—A grant or 
loan may not be used to— 
‘‘(1) pay ordinary governmental or nonproject 
operating expenses; or 
‘‘(2) support a procurement that uses an exclu-
sionary or discriminatory specification. 
‘‘(j) GOVERNMENT SHARE OF COSTS FOR CERTAIN 
PROJECTS.—A grant for a project to be assisted under this 
chapter that involves acquiring vehicle-related equipment or 
facilities required by the Americans with Disabilities Act 
of 1990 (42 U.S.C. 12101 et seq.) or vehicle-related equip-
ment or facilities (including clean fuel or alternative fuel 
vehicle-related equipment or facilities) for purposes of com-
plying with or maintaining compliance with the Clean Air 
Act, is for 90 percent of the net project cost of such equip-
ment or facilities attributable to compliance with those 
Acts. The Secretary shall have discretion to determine, 
through practicable administrative procedures, the costs of 
such equipment or facilities attributable to compliance with 
those Acts. 
‘‘(k) BUY AMERICA.— 
‘‘(1) IN GENERAL.—The Secretary may obligate 
an amount that may be appropriated to carry out 
this chapter for a project only if the steel, iron, and
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† HR 4348 EAS 
manufactured goods used in the project are produced 
in the United States. 
‘‘(2) WAIVER.—The Secretary may waive para-
graph (1) of this subsection if the Secretary finds 
that— 
‘‘(A) applying paragraph (1) would be in-
consistent with the public interest; 
‘‘(B) the steel, iron, and goods produced in 
the United States are not produced in a suffi-
cient and reasonably available amount or are 
not of a satisfactory quality; 
‘‘(C) when procuring rolling stock (includ-
ing train control, communication, and traction 
power equipment) under this chapter— 
‘‘(i) the cost of components and sub-
components produced in the United States 
is more than 60 percent of the cost of all 
components of the rolling stock; and 
‘‘(ii) final assembly of the rolling stock 
has occurred in the United States; or 
‘‘(D) including domestic material will in-
crease the cost of the overall project by more than 
25 percent. 
‘‘(3) WRITTEN WAIVER DETERMINATION AND AN-
NUAL REPORT.—
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† HR 4348 EAS 
‘‘(A) 
WRITTEN
DETERMINATION.—Before 
issuing a waiver under paragraph (2), the Sec-
retary shall— 
‘‘(i) publish in the Federal Register 
and make publicly available in an easily 
identifiable location on the website of the 
Department of Transportation a detailed 
written explanation of the waiver deter-
mination; and 
‘‘(ii) provide the public with a reason-
able period of time for notice and comment. 
‘‘(B) ANNUAL REPORT.—Not later than 1 
year after the date of enactment of the Federal 
Public Transportation Act of 2012, and annu-
ally thereafter, the Secretary shall submit to the 
Committee on Banking, Housing, and Urban Af-
fairs of the Senate and the Committee on Trans-
portation and Infrastructure of the House of 
Representatives a report listing any waiver 
issued under paragraph (2) during the preceding 
year. 
‘‘(4) LABOR COSTS FOR FINAL ASSEMBLY.—In 
this subsection, labor costs involved in final assembly 
are not included in calculating the cost of compo-
nents.