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‘‘(i) the types of data to be included in
the list described in subparagraph (B),
including—
‘‘(I) the name, type, purpose, and
geocoded location of each project;
‘‘(II) the Federal, State, and local
identification numbers assigned to each
project;
‘‘(III) amounts obligated and ex-
pended on each project, sorted by fund-
ing source and transportation mode,
and the date on which each obligation
was made; and
‘‘(IV) the status of each project;
and
‘‘(ii) the media through which the list
described in subparagraph (B) will be made
available to the public, including written
and visual components for each of the
projects listed.
‘‘(k) TRANSPORTATION MANAGEMENT AREAS.—
‘‘(1) REQUIRED IDENTIFICATION.—The Secretary
shall identify each urbanized area with a population
of more than 200,000 individuals as a transportation
management area.
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‘‘(2) TRANSPORTATION PLANS AND PROGRAMS.—
Transportation plans and programs for a metropoli-
tan planning area serving a transportation manage-
ment area shall be based on a continuing and com-
prehensive transportation planning process carried
out by the metropolitan planning organization in co-
operation with the State and transit operators.
‘‘(3) CONGESTION MANAGEMENT SYSTEM.—
‘‘(A) IN
GENERAL.—The transportation
planning process under this section shall address
congestion management through a process that
provides for effective management and operation,
based on a cooperatively developed and imple-
mented metropolitan-wide strategy, of new and
existing transportation facilities eligible for
funding under title 23 and this chapter through
the use of travel demand reduction and oper-
ational management strategies.
‘‘(B) PHASE-IN SCHEDULE.—The Secretary
shall establish a phase-in schedule that provides
for full compliance with the requirements of this
section not later than 1 year after the identifica-
tion of transportation management areas under
paragraph (1).
‘‘(4) SELECTION OF PROJECTS.—
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‘‘(A) IN
GENERAL.—All federally funded
projects carried out within the boundaries of a
metropolitan planning area serving a transpor-
tation management area under title 23 (except
for projects carried out on the National Highway
System and projects carried out under the bridge
program or the interstate maintenance program)
or under this chapter shall be selected for imple-
mentation from the approved transportation im-
provement program by the metropolitan plan-
ning organization designated for the area in con-
sultation with the State and any affected public
transit operator.
‘‘(B) 
NATIONAL
HIGHWAY
SYSTEM
PROJECTS.—Projects on the National Highway
System carried out within the boundaries of a
metropolitan planning area serving a transpor-
tation management area and projects carried out
within such boundaries under the bridge pro-
gram or the interstate maintenance program
under title 23 shall be selected for implementa-
tion from the approved transportation improve-
ment program by the State in cooperation with
the metropolitan planning organization des-
ignated for the area.
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‘‘(5) CERTIFICATION.—
‘‘(A) IN GENERAL.—The Secretary shall—
‘‘(i) ensure that the metropolitan plan-
ning process of a metropolitan planning or-
ganization serving a transportation man-
agement area is being carried out in ac-
cordance with Federal law; and
‘‘(ii) subject to subparagraph (B), cer-
tify, not less frequently than once every 4
years in nonattainment and maintenance
areas (as defined under the Clean Air Act)
and not less frequently than once every 5
years in attainment areas (as defined under
such Act), that the requirements of this
paragraph are met with respect to the met-
ropolitan planning process.
‘‘(B) 
REQUIREMENTS
FOR
CERTIFI-
CATION.—The Secretary may make the certifi-
cation under subparagraph (A) if—
‘‘(i) the transportation planning proc-
ess complies with the requirements of this
section and all other applicable Federal
law; and
‘‘(ii) a transportation plan and a
transportation improvement program for
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the metropolitan planning area have been
approved by the metropolitan planning or-
ganization and the Governor.
‘‘(C) PENALTY FOR FAILING TO CERTIFY.—
‘‘(i) WITHHOLDING PROJECT FUNDS.—
If the metropolitan planning process of a
metropolitan planning organization serving
a transportation management area is not
certified, the Secretary may withhold any
funds otherwise available to the metropoli-
tan planning area for projects funded under
title 23 and this chapter.
‘‘(ii) 
RESTORATION
OF
WITHHELD
FUNDS.—Any funds withheld under clause
(i) shall be restored to the metropolitan
planning area when the metropolitan plan-
ning process is certified by the Secretary.
‘‘(D) REVIEW OF CERTIFICATION.—In mak-
ing a certification under this paragraph, the
Secretary shall provide for public involvement
appropriate to the metropolitan area under re-
view.
‘‘(l) ABBREVIATED PLANS FOR CERTAIN AREAS.—
‘‘(1) IN GENERAL.—Subject to paragraph (2), in
the case of a metropolitan area not designated as a
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transportation management area under this section,
the Secretary may provide for the development of an
abbreviated transportation plan and transportation
improvement program for the metropolitan planning
area that the Secretary determines is appropriate to
achieve the purposes of this section, after considering
the complexity of transportation problems in the area.
‘‘(2) NONATTAINMENT
AREAS.—The Secretary
may not permit abbreviated plans for a metropolitan
area that is in nonattainment for ozone or carbon
monoxide under the Clean Air Act (42 U.S.C. 7401
et seq.).
‘‘(m) ADDITIONAL REQUIREMENTS FOR CERTAIN NON-
ATTAINMENT AREAS.—
‘‘(1) IN GENERAL.—Notwithstanding any other
provisions of title 23 or this chapter, Federal funds
may not be advanced for transportation management
areas classified as nonattainment for ozone or carbon
monoxide pursuant to the Clean Air Act (42 U.S.C.
7401 et seq.) for any highway project that will result
in a significant increase in carrying capacity for sin-
gle-occupant vehicles unless the project is addressed
through a congestion management process.
‘‘(2) APPLICABILITY.—This subsection applies to
any nonattainment area within the metropolitan
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planning area boundaries determined under sub-
section (d).
‘‘(n) LIMITATION ON STATUTORY CONSTRUCTION.—
Nothing in this section shall be construed to confer on a
metropolitan planning organization the authority to im-
pose legal requirements on any transportation facility, pro-
vider, or project that is not eligible under title 23 or this
chapter.
‘‘(o) AVAILABILITY OF FUNDS.—Funds set aside under
section 104(f) of title 23 or section 5308 of this title shall
be available to carry out this section.
‘‘(p) CONTINUATION
OF CURRENT REVIEW PRAC-
TICE.—Any decision by the Secretary concerning a plan or
program described in this section 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.).’’.
SEC. 6006. STATEWIDE TRANSPORTATION PLANNING.
Section 5304 is amended to read as follows:
‘‘§ 5304. Statewide transportation planning
‘‘(a) GENERAL REQUIREMENTS.—
‘‘(1) DEVELOPMENT OF PLANS AND PROGRAMS.—
To support the policies described in section 5301(a),
each State shall develop a statewide transportation
plan (referred to in this section as a ‘‘Plan’’) and a
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statewide transportation improvement program (re-
ferred to in this section as a ‘‘Program’’) for all areas
of the State subject to section 5303.
‘‘(2) CONTENTS.—The Plan and the Program de-
veloped for each State shall provide for the develop-
ment and integrated management and operation of
transportation systems and facilities (including pe-
destrian walkways and bicycle transportation facili-
ties) that will function as an intermodal transpor-
tation system for the State and an integral part of
an intermodal transportation system for the United
States.
‘‘(3) PROCESS OF DEVELOPMENT.—The process
for developing the Plan and the Program shall—
‘‘(A) provide for the consideration of all
modes of transportation and the policies de-
scribed in section 5301(a); and
‘‘(B) be continuing, cooperative, and com-
prehensive to the degree appropriate, based on
the complexity of the transportation problems to
be addressed.
‘‘(b) COORDINATION WITH METROPOLITAN PLANNING;
STATE IMPLEMENTATION PLAN.—Each State shall—
‘‘(1) coordinate planning under this section
with—
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‘‘(A) the transportation planning activities
under section 5303 for metropolitan areas of the
State; and
‘‘(B) other related statewide planning ac-
tivities, including trade and economic develop-
ment and related multistate planning efforts;
and
‘‘(2) develop the transportation portion of the
State implementation plan, as required by the Clean
Air Act (42 U.S.C. 7401 et seq.).
‘‘(c) INTERSTATE AGREEMENTS.—States may enter
into agreements or compacts with other States for coopera-
tive efforts and mutual assistance in support of activities
authorized under this section related to interstate areas and
localities in the States and establishing authorities the
States consider desirable for making the agreements and
compacts effective.
‘‘(d) SCOPE OF PLANNING PROCESS.—
‘‘(1) IN GENERAL.—Each State shall carry out a
statewide transportation planning process that pro-
vides for the consideration of projects, strategies, and
implementing projects and services that will—
‘‘(A) support the economic vitality of the
United States, the States, nonmetropolitan areas,
and metropolitan areas, especially by enabling
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global competitiveness, productivity, and effi-
ciency;
‘‘(B) increase the safety of the transpor-
tation system for motorized and nonmotorized
users;
‘‘(C) increase the security of the transpor-
tation system for motorized and nonmotorized
users;
‘‘(D) increase the accessibility and mobility
of people and freight;
‘‘(E) protect and enhance the environment
(including the protection of habitat, water qual-
ity, and agricultural and forest land, while
minimizing invasive species), promote energy
conservation, promote consistency between trans-
portation improvements and State and local
land use planning and economic development
patterns, and improve the quality of life (includ-
ing minimizing adverse health effects from mo-
bile source air pollution and promoting the link-
age of the transportation and development goals
of the State);
‘‘(F) 
enhance 
the 
integration 
and
connectivity of the transportation system, across
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and between modes throughout the State, for peo-
ple and freight;
‘‘(G) promote efficient system management
and operation; and
‘‘(H) emphasize the preservation and effi-
cient use of the existing transportation system.
‘‘(2) SELECTION
OF
PROJECTS
AND
STRATE-
GIES.—After soliciting and considering any relevant
public comments, the State shall determine which of
the projects and strategies described in paragraph (1)
are most appropriate.
‘‘(3) MITIGATION ACTIVITIES.—
‘‘(A) IN GENERAL.—A transportation plan
under this subsection shall include a discussion
of—
‘‘(i) 
types 
of 
potential 
habitat,
hydrological, and environmental mitigation
activities that may assist in compensating
for loss of habitat, wetland, and other envi-
ronmental functions; and
‘‘(ii) potential areas to carry out these
activities, including a discussion of areas
that may have the greatest potential to re-
store and maintain the habitat types and
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hydrological or environmental functions af-
fected by the plan.
‘‘(B) CONSULTATION.—The discussion de-
scribed in subparagraph (A) shall be developed
in consultation with Federal and State tribal
wildlife, land management, and regulatory agen-
cies.
‘‘(4) FAILURE TO CONSIDER FACTORS.—The fail-
ure to consider any factor described in paragraph (1)
shall not be reviewable by any court under title 23,
this title, subchapter II of chapter 5 of title 5, or
chapter 7 of title 5 in any matter affecting a Plan,
a Program, a project or strategy, or the certification
of a planning process.
‘‘(e) ADDITIONAL REQUIREMENTS.—In carrying out
planning under this section, each State shall consider—
‘‘(1) with respect to nonmetropolitan areas, the
concerns of affected local officials with responsibility
for transportation;
‘‘(2) the concerns of Indian tribal governments
and Federal land management agencies that have ju-
risdiction over land within the boundaries of the
State; and
‘‘(3) coordination of Plans, Programs, and plan-
ning activities with related planning activities being
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carried out outside of metropolitan planning areas
and between States.
‘‘(f) STATEWIDE TRANSPORTATION PLAN.—
‘‘(1) DEVELOPMENT.—Each State shall develop a
Plan, with a minimum 20-year forecast period for all
areas of the State, that provides for the development
and implementation of the intermodal transportation
system of the State.
‘‘(2) CONSULTATION WITH GOVERNMENTS.—
‘‘(A) METROPOLITAN
PLANNING
AREAS.—
The Plan shall be developed for each metropoli-
tan planning area in the State in cooperation
with the metropolitan planning organization
designated for the metropolitan planning area
under section 5303.
‘‘(B) NONMETROPOLITAN AREAS.—With re-
spect to nonmetropolitan areas, the statewide
transportation plan shall be developed in con-
sultation with affected nonmetropolitan officials
with responsibility for transportation. The con-
sultation process shall not require the review or
approval of the Secretary.
‘‘(C) INDIAN TRIBAL AREAS.—With respect
to each area of the State under the jurisdiction
of an Indian tribal government, the Plan shall
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be developed in consultation with the tribal gov-
ernment and the Secretary of the Interior.
‘‘(D) CONSULTATION, 
COMPARISON, 
AND
CONSIDERATION.—
‘‘(i) IN GENERAL.—The Plan shall be
developed, as appropriate, in consultation
with State and local agencies responsible
for—
‘‘(I) land use management;
‘‘(II) natural resources;
‘‘(III) environmental protection;
‘‘(IV) conservation; and
‘‘(V) historic preservation.
‘‘(ii) COMPARISON
AND
CONSIDER-
ATION.—Consultation under clause (i) shall
involve—
‘‘(I) comparison of transportation
plans to State conservation plans or
maps, if available;
‘‘(II) comparison of transpor-
tation plans to inventories of natural
or historic resources, if available; or
‘‘(III) 
consideration 
of 
areas
where wildlife crossing structures may
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be needed to ensure connectivity be-
tween wildlife habitat linkage areas.
‘‘(3) PARTICIPATION BY INTERESTED PARTIES.—
In developing the Plan, the State shall—
‘‘(A) provide citizens, affected public agen-
cies, representatives of public transportation em-
ployees, freight shippers, private providers of
transportation, representatives of users of public
transportation, representatives of users of pedes-
trian walkways and bicycle transportation fa-
cilities, providers of freight transportation serv-
ices, and other interested parties with a reason-
able opportunity to comment on the proposed
Plan; and
‘‘(B) to the maximum extent practicable—
‘‘(i) hold any public meetings at con-
venient and accessible locations and times;
‘‘(ii) employ visualization techniques
to describe plans; and
‘‘(iii) make public information avail-
able in electronically accessible format and
means, such as the World Wide Web.
‘‘(4) MITIGATION ACTIVITIES.—
‘‘(A) IN GENERAL.—A Plan shall include a
discussion of—
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‘‘(i) 
types 
of 
potential 
habitat,
hydrological, and environmental mitigation
activities that may assist in compensating
for loss of habitat, wetlands, and other envi-
ronmental functions; and
‘‘(ii) potential areas to carry out these
activities, including a discussion of areas
that may have the greatest potential to re-
store and maintain the habitat types and
hydrological or environmental functions af-
fected by the plan.
‘‘(B) CONSULTATION.—The discussion de-
scribed in subparagraph (A) shall be developed
in consultation with Federal and State tribal
wildlife, land management, and regulatory agen-
cies.
‘‘(5) TRANSPORTATION
STRATEGIES.—A Plan
shall identify transportation strategies necessary to
efficiently serve the mobility needs of people.
‘‘(6) FINANCIAL PLAN.—The Plan may include a
financial plan that—
‘‘(A) demonstrates how the adopted Plan
can be implemented;
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‘‘(B) indicates resources from public and
private sources that are reasonably expected to be
made available to carry out the Plan;
‘‘(C) recommends any additional financing
strategies for needed projects and programs; and
‘‘(D) may include, for illustrative purposes,
additional projects that would be included in the
adopted Plan if reasonable additional resources
beyond those identified in the financial plan
were available.
‘‘(7) SELECTION
OF
PROJECTS
FROM
ILLUS-
TRATIVE LIST.—A State shall not be required to select
any project from the illustrative list of additional
projects described in paragraph (6)(D).
‘‘(8) EXISTING SYSTEM.—The Plan should in-
clude capital, operations and management strategies,
investments, procedures, and other measures to ensure
the preservation and most efficient use of the existing
transportation system.
‘‘(9) PUBLICATION OF LONG-RANGE TRANSPOR-
TATION PLANS.—Each Plan prepared by a State shall
be published or otherwise made available, including,
to the maximum extent practicable, in electronically
accessible formats and means, such as the World Wide
Web.
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‘‘(g) STATEWIDE
TRANSPORTATION
IMPROVEMENT
PROGRAM.—
‘‘(1) DEVELOPMENT.—Each State shall develop a
Program for all areas of the State.
‘‘(2) CONSULTATION WITH GOVERNMENTS.—
‘‘(A) METROPOLITAN
PLANNING
AREAS.—
With respect to each metropolitan planning area
in the State, the Program shall be developed in
cooperation with the metropolitan planning or-
ganization designated for the metropolitan plan-
ning area under section 5303.
‘‘(B) NONMETROPOLITAN AREAS.—With re-
spect to each nonmetropolitan area in the State,
the Program shall be developed in consultation
with affected nonmetropolitan local officials with
responsibility for transportation. The consulta-
tion process shall not require the review or ap-
proval of the Secretary.
‘‘(C) INDIAN TRIBAL AREAS.—With respect
to each area of the State under the jurisdiction
of an Indian tribal government, the Program
shall be developed in consultation with the tribal
government and the Secretary of the Interior.
‘‘(3) PARTICIPATION BY INTERESTED PARTIES.—
In developing the Program, the State shall provide
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citizens, affected public agencies, representatives of
public transportation employees, freight shippers, pri-
vate providers of transportation, providers of freight
transportation services, representatives of users of
public transit, representatives of users of pedestrian
walkways and bicycle transportation facilities, and
other interested parties with a reasonable opportunity
to comment on the proposed Program.
‘‘(4) INCLUDED PROJECTS.—
‘‘(A) IN GENERAL.—A Program developed
under this subsection for a State shall include
federally supported surface transportation ex-
penditures within the boundaries of the State.
‘‘(B) LISTING OF PROJECTS.—
‘‘(i) IN GENERAL.—The Program shall
cover a minimum of 4 years, identify
projects by year, be fiscally constrained by
year, and be updated not less than once
every 4 years.
‘‘(ii) PUBLICATION.—An annual list-
ing of projects for which funds have been ob-
ligated in the preceding 4 years in each
metropolitan planning area shall be pub-
lished or otherwise made available by the
cooperative effort of the State, transit oper-
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ator, and the metropolitan planning organi-
zation for public review. The listing shall be
consistent with the funding categories iden-
tified in each metropolitan transportation
improvement program.
‘‘(C) INDIVIDUAL IDENTIFICATION.—
‘‘(i) 
REGIONALLY
SIGNIFICANT
PROJECTS.—Regionally significant projects
proposed for funding under chapter 2 of
title 23 shall be identified individually in
the transportation improvement program.
‘‘(ii) OTHER PROJECTS.—Projects pro-
posed for funding under chapter 2 of title
23 that are not determined to be regionally
significant shall be grouped in 1 line item
or identified individually.
‘‘(D) 
CONSISTENCY
WITH
STATEWIDE
TRANSPORTATION PLAN.—Each project included
in the list described in subparagraph (B) shall
be—
‘‘(i) consistent with the Plan developed
under this section for the State;
‘‘(ii) identical to the project or phase of
the project as described in each year of the
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approved metropolitan transportation im-
provement program; and
‘‘(iii) in conformance with the applica-
ble State air quality implementation plan
developed under the Clean Air Act (42
U.S.C. 7401 et seq.), if the project is carried
out in an area designated as nonattainment
for ozone or carbon monoxide under that
Act.
‘‘(E) REQUIREMENT OF ANTICIPATED FULL
FUNDING.—The Program shall not include a
project, or an identified phase of a project, unless
full funding can reasonably be anticipated to be
available for the project within the time period
contemplated for completion of the project.
‘‘(F) FINANCIAL PLAN.—The Program may
include a financial plan that—
‘‘(i) demonstrates how the approved
Program can be implemented;
‘‘(ii) indicates resources from public
and private sources that are reasonably ex-
pected to be made available to carry out the
Program;
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‘‘(iii) recommends any additional fi-
nancing strategies for needed projects and
programs; and
‘‘(iv) may include, for illustrative pur-
poses, additional projects that would be in-
cluded in the adopted transportation plan if
reasonable additional resources beyond those
identified in the financial plan were avail-
able.
‘‘(G) SELECTION OF PROJECTS FROM ILLUS-
TRATIVE LIST.—
‘‘(i) NO REQUIRED SELECTION.—Not-
withstanding subparagraph (F), a State
shall not be required to select any project
from the illustrative list of additional
projects described in subparagraph (F)(iv).
‘‘(ii) REQUIRED
APPROVAL
BY
THE
SECRETARY.—A State shall not include any
project from the illustrative list of addi-
tional projects described in subparagraph
(F)(iv) in an approved Program without
the approval of the Secretary.
‘‘(H) PRIORITIES.—The Program shall re-
flect the priorities for programming and expend-
itures of funds, including transportation and
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transit enhancement activities, required by title
23 and this chapter, and transportation control
measures included in the State’s air quality im-
plementation plan.
‘‘(5) PROJECT
SELECTION
FOR
AREAS
WITH
FEWER THAN 50,000 INDIVIDUALS.—
‘‘(A) IN GENERAL.—Each State, in coopera-
tion with the affected nonmetropolitan local offi-
cials with responsibility for transportation, shall
select projects to be carried out in areas with
fewer than 50,000 individuals from the approved
Program (excluding projects carried out under
the National Highway System, the bridge pro-
gram, or the interstate maintenance program
under title 23 or sections 5310 and 5311 of this
title).
‘‘(B) CERTAIN PROGRAMS.—Each State, in
consultation with the affected nonmetropolitan
local officials with responsibility for transpor-
tation, shall select, from the approved Program,
projects to be carried out in areas with fewer
than 50,000 individuals under the National
Highway System, the bridge program, or the
Interstate maintenance program under title 23
or under sections 5310 and 5311 of this title.
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‘‘(6) STATEWIDE
TRANSPORTATION
IMPROVE-
MENT
PROGRAM
APPROVAL.—A Program developed
under this subsection shall be reviewed and based on
a current planning finding approved by the Secretary
not less frequently than once every 4 years.
‘‘(7) PLANNING
FINDING.—Not less frequently
than once every 4 years, the Secretary shall determine
whether the transportation planning process through
which Plans and Programs are developed are con-
sistent with this section and section 5303.
‘‘(8) MODIFICATIONS TO PROJECT PRIORITY.—
Notwithstanding any other provision of law, a project
included in the approved Program may be advanced
in place of another project in the program without the
approval of the Secretary.
‘‘(h) FUNDING.—Funds set aside pursuant to section
104(i) of title 23 and section 5308 of this title shall be avail-
able to carry out this section.
‘‘(i) TREATMENT OF CERTAIN STATE LAWS AS CON-
GESTION MANAGEMENT SYSTEMS.—For purposes of this
section and section 5303, State laws, rules, or regulations
pertaining to congestion management systems or programs
may constitute the congestion management system under
section 5303(i)(3) if the Secretary determines that the State
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laws, rules, or regulations are consistent with, and fulfill
the intent of, the purposes of section 5303.
‘‘(j) CONTINUATION
OF
CURRENT
REVIEW
PRAC-
TICE.—Any decision by the Secretary under this section,
regarding a metropolitan or statewide transportation plan
or the Program, shall not be considered to be a Federal ac-
tion subject to review under the National Environmental
Policy Act of 1969 (42 U.S.C. 4321 et seq.).’’.
SEC. 6007. TRANSPORTATION MANAGEMENT AREAS.
Section 5305 is repealed.
SEC. 6008. PRIVATE ENTERPRISE PARTICIPATION.
Section 5306 is amended—
(1) in subsection (a)—
(A) by striking ‘‘5305 of this title’’ and in-
serting ‘‘5308’’; and
(B) by inserting ‘‘, as determined by local
policies, criteria, and decision making,’’ after
‘‘feasible’’;
(2) in subsection (b) by striking ‘‘5303–5305 of
this title’’ and inserting ‘‘5303, 5304, and 5308’’; and
(3) by adding at the end the following:
‘‘(c) REGULATIONS.—Not later than 1 year after the
date of enactment of the Federal Public Transportation Act
of 2005, the Secretary shall issue regulations describing how
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the requirements under this chapter relating to subsection
(a) shall be enforced.’’.
SEC. 6009. URBANIZED AREA FORMULA GRANTS.
(a) TECHNICAL
AMENDMENTS.—Section 5307 is
amended—
(1) by striking subsections (h), (j) and (k); and
(2) by redesignating subsections (i), (l), (m), and
(n) as subsections (h), (i), (j), and (k), respectively.
(b) DEFINITIONS.—Section 5307(a) is amended—
(1) by amending paragraph (2)(A) to read as
follows:
‘‘(A) an entity designated, in accordance
with the planning process under sections 5303,
5304, and 5306, by the chief executive officer of
a State, responsible local officials, and publicly
owned operators of public transportation, to re-
ceive and apportion amounts under section 5336
that are attributable to transportation manage-
ment areas designated under section 5303; or’’;
and
(2) by adding at the end the following:
‘‘(3) SUBRECIPIENT.—The term ‘subrecipient’
means a State or local governmental authority, a
nonprofit organization, or a private operator of pub-
lic transportation service that may receive a Federal
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transit program grant indirectly through a recipient,
rather than directly from the Federal Government.’’.
(c) 
GENERAL
AUTHORITY.—Section 
5307(b) 
is
amended—
(1) by amending paragraph (1) to read as fol-
lows:
‘‘(1) IN GENERAL.—The Secretary of Transpor-
tation may award grants under this section for—
‘‘(A) capital projects, including associated
capital maintenance items;
‘‘(B) planning, including mobility manage-
ment;
‘‘(C) transit enhancements;
‘‘(D) operating costs of equipment and fa-
cilities for use in public transportation in an ur-
banized area with a population of less than
200,000; and
‘‘(E) operating costs of equipment and fa-
cilities for use in public transportation in a por-
tion or portions of an urbanized area with a
population of at least 200,000, but not more
than 225,000, if—
‘‘(i) the urbanized area includes parts
of more than 1 State;
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‘‘(ii) the portion of the urbanized area
includes only 1 State;
‘‘(iii) the population of the portion of
the urbanized area is less than 30,000; and
‘‘(iv) the grants will not be used to
provide public transportation outside of the
portion of the urbanized area.’’;
(2) by amending paragraph (2) to read as fol-
lows:
‘‘(2) SPECIAL
RULE
FOR
FISCAL
YEARS
2005
THROUGH 2007.—
‘‘(A) INCREASED
FLEXIBILITY.—The Sec-
retary may award grants under this section,
from funds made available to carry out this sec-
tion for each of the fiscal years 2005 through
2007, to finance the operating cost of equipment
and facilities for use in mass transportation in
an urbanized area with a population of at least
200,000, as determined by the 2000 decennial
census of population if—
‘‘(i) the urbanized area had a popu-
lation of less than 200,000, as determined
by the 1990 decennial census of population;
‘‘(ii) a portion of the urbanized area
was a separate urbanized area with a popu-
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lation of less than 200,000, as determined
by the 1990 decennial census of population;
‘‘(iii) the area was not designated as
an urbanized area, as determined by the
1990 decennial census of population; or
‘‘(iv) a portion of the area was not des-
ignated as an urbanized area, as deter-
mined by the 1990 decennial census, and re-
ceived assistance under section 5311 in fis-
cal year 2002.
‘‘(B) MAXIMUM AMOUNTS IN FISCAL YEAR
2005.—In fiscal year 2005—
‘‘(i) amounts made available to any
urbanized area under clause (i) or (ii) of
subparagraph (A) shall be not more than
the amount apportioned in fiscal year 2002
to the urbanized area with a population of
less than 200,000, as determined in the
1990 decennial census of population;
‘‘(ii) amounts made available to any
urbanized area under subparagraph (A)(iii)
shall be not more than the amount appor-
tioned to the urbanized area under this sec-
tion for fiscal year 2003; and
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‘‘(iii) each portion of any area not des-
ignated as an urbanized area, as deter-
mined by the 1990 decennial census, and el-
igible to receive funds under subparagraph
(A)(iv), shall receive an amount of funds to
carry out this section that is not less than
the amount the portion of the area received
under section 5311 for fiscal year 2002.
‘‘(C) MAXIMUM AMOUNTS IN FISCAL YEAR
2006.—In fiscal year 2006—
‘‘(i) amounts made available to any
urbanized area under clause (i) or (ii) of
subparagraph (A) shall be not more than 50
percent of the amount apportioned in fiscal
year 2002 to the urbanized area with a
population of less than 200,000, as deter-
mined in the 1990 decennial census of pop-
ulation;
‘‘(ii) amounts made available to any
urbanized area under subparagraph (A)(iii)
shall be not more than 50 percent of the
amount apportioned to the urbanized area
under this section for fiscal year 2003; and
‘‘(iii) each portion of any area not des-
ignated as an urbanized area, as deter-
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mined by the 1990 decennial census, and el-
igible to receive funds under subparagraph
(A)(iv), shall receive an amount of funds to
carry out this section that is not less 50
percent of the amount the portion of the
area received under section 5311 for fiscal
year 2002.
‘‘(D) MAXIMUM AMOUNTS IN FISCAL YEAR
2007.—In fiscal year 2007—
‘‘(i) amounts made available to any
urbanized area under clause (i) or (ii) of
subparagraph (A) shall be not more than 25
percent of the amount apportioned in fiscal
year 2002 to the urbanized area with a
population of less than 200,000, as deter-
mined in the 1990 decennial census of pop-
ulation;
‘‘(ii) amounts made available to any
urbanized area under subparagraph (A)(iii)
shall be not more than 25 percent of the
amount apportioned to the urbanized area
under this section for fiscal year 2003; and
‘‘(iii) each portion of any area not des-
ignated as an urbanized area, as deter-
mined by the 1990 decennial census, and el-
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igible to receive funds under subparagraph
(A)(iv), shall receive an amount of funds to
carry out this section that is not less than
25 percent of the amount the portion of the
area received under section 5311 in fiscal
year 2002.’’; and
(3) by striking paragraph (4).
(d) GRANT
RECIPIENT
REQUIREMENTS.—Section
5307(d)(1) is amended—
(1) in subparagraph (A), by inserting ‘‘, includ-
ing safety and security aspects of the program’’ after
‘‘program’’;
(2) in subparagraph (E), by striking ‘‘section’’
and all that follows and inserting ‘‘section, the recipi-
ent will comply with sections 5323 and 5325;’’;
(3) in subparagraph (H), by striking ‘‘sections
5301(a) and (d), 5303–5306, and 5310(a)–(d) of this
title’’ and inserting ‘‘subsections (a) and (d) of section
5301 and sections 5303 through 5306’’;
(4) in subparagraph (I) by striking ‘‘and’’ at the
end;
(5) in subparagraph (J), by striking the period
at the end and inserting ‘‘; and’’; and
(6) by adding at the end the following:
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‘‘(K) if located in an urbanized area with
a population of at least 200,000, will expend not
less than 1 percent of the amount the recipient
receives each fiscal year under this section for
transit enhancement activities described in sec-
tion 5302(a)(15).’’.
(e) GOVERNMENT’S
SHARE
OF
COSTS.—Section
5307(e) is amended—
(1) by striking the first sentence and inserting
the following:
‘‘(1) CAPITAL PROJECTS.—A grant for a capital
project under this section shall cover 80 percent of the
net project cost.’’;
(2) by striking ‘‘A grant for operating expenses’’
and inserting the following:
‘‘(2) OPERATING EXPENSES.—A grant for oper-
ating expenses’’;
(3) by striking the fourth sentence and inserting
the following:
‘‘(3) REMAINING COSTS.—The remainder of the
net project cost shall be provided in cash from non-
Federal sources or revenues derived from the sale of
advertising and concessions and amounts received
under a service agreement with a State or local social
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service agency or a private social service organiza-
tion.’’; and
(4) by adding at the end the following: ‘‘The pro-
hibitions 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 the remainder.’’.
(f) UNDERTAKING PROJECTS IN ADVANCE.—Section
5307(g) is amended by striking paragraph (4).
(g) 
RELATIONSHIP
TO
OTHER
LAWS.—Section
5307(k), as redesignated, is amended to read as follows:
‘‘(k) RELATIONSHIP TO OTHER LAWS.—
‘‘(1) APPLICABLE
PROVISIONS.—Sections 5301,
5302, 5303, 5304, 5306, 5315(c), 5318, 5319, 5323,
5325, 5327, 5329, 5330, 5331, 5332, 5333 and 5335
apply to this section and to any grant made under
this section.
‘‘(2) INAPPLICABLE PROVISIONS.—
‘‘(A) IN
GENERAL.—Except as provided
under this section, no other provision of this
chapter applies to this section or to a grant
made under this section.
‘‘(B) TITLE 5.—The provision of assistance
under this chapter shall not be construed as
bringing within the application of chapter 15 of
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title 5, any nonsupervisory employee of a public
transportation system (or any other agency or
entity performing related functions) to which
such chapter is otherwise inapplicable.’’.
(h) CONTRACTED PARATRANSIT PILOT.—
(1) 
IN
GENERAL.—Notwithstanding 
section
5302(a)(1)(I) of title 49, United States Code, for fis-
cal years 2005 through 2009, a recipient of assistance
under section 5307 of title 49, United States Code, in
an urbanized area with a population of 558,329 ac-
cording to the 2000 decennial census of population
may use not more than 20 percent of such recipient’s
annual formula apportionment under section 5307 of
title 49, United States Code, for the provision of non-
fixed route paratransit services in accordance with
section 223 of the Americans with Disabilities Act (42
U.S.C. 12143), but only if the grant recipient is in
compliance with applicable requirements of that Act,
including both fixed route and demand responsive
service and the service is acquired by contract.
(2) REPORT.—Not later than January 1, 2009,
the Secretary shall submit to the Committee on
Transportation and Infrastructure of the House of
Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate, a report
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on the implementation of this section and any rec-
ommendations of the Secretary regarding the applica-
tion of this section.
SEC. 6010. PLANNING PROGRAMS.
(a) IN GENERAL.—Section 5308 is amended to read
as follows:
‘‘§ 5308. Planning programs
‘‘(a) GRANTS AUTHORIZED.—Under criteria estab-
lished by the Secretary, the Secretary may award grants
to States, authorities of the States, metropolitan planning
organizations, and local governmental authorities, make
agreements with other departments, agencies, or instrumen-
talities of the Government, or enter into contracts with pri-
vate nonprofit or for-profit entities to—
‘‘(1) develop transportation plans and programs;
‘‘(2) plan, engineer, design, and evaluate a pub-
lic transportation project; or
‘‘(3) conduct technical studies relating to public
transportation, including—
‘‘(A) studies related to management, plan-
ning, operations, capital requirements, and eco-
nomic feasibility;
‘‘(B) evaluations of previously financed
projects;
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‘‘(C) peer reviews and exchanges of technical
data, information, assistance, and related activi-
ties in support of planning and environmental
analyses among metropolitan planning organiza-
tions and other transportation planners; and
‘‘(D) other similar and related activities
preliminary to, and in preparation for, con-
structing, acquiring, or improving the operation
of facilities and equipment.
‘‘(b) PURPOSE.—To the extent practicable, the Sec-
retary shall ensure that amounts appropriated pursuant to
section 5338 to carry out this section and sections 5303,
5304, and 5306 are used to support balanced and com-
prehensive transportation planning that considers the rela-
tionships among land use and all transportation modes,
without regard to the programmatic source of the planning
amounts.
‘‘(c) METROPOLITAN PLANNING PROGRAM.—
‘‘(1) ALLOCATIONS TO STATES.—
‘‘(A) IN GENERAL.—The Secretary shall al-
locate 80 percent of the amount made available
under subsection (g)(3)(A) to States to carry out
sections 5303 and 5306 in a ratio equal to the
population in urbanized areas in each State, di-
vided by the total population in urbanized areas
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in all States, as shown by the latest available de-
cennial census of population.
‘‘(B) MINIMUM
ALLOCATION.—Each State
shall receive not less than 0.5 percent of the total
amount allocated under this paragraph.
‘‘(2) AVAILABILITY OF FUNDS.—A State receiv-
ing an allocation under paragraph (1) shall promptly
distribute such funds to metropolitan planning orga-
nizations in the State under a formula—
‘‘(A) developed by the State in cooperation
with the metropolitan planning organizations;
‘‘(B) approved by the Secretary of Trans-
portation;
‘‘(C) that considers population in urbanized
areas; and
‘‘(D) that provides an appropriate distribu-
tion for urbanized areas to carry out the cooper-
ative processes described in this section.
‘‘(3) SUPPLEMENTAL ALLOCATIONS.—
‘‘(A) IN GENERAL.—The Secretary shall al-
locate 20 percent of the amount made available
under subsection (g)(3)(A) to States to supple-
ment allocations made under paragraph (1) for
metropolitan planning organizations.
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‘‘(B) 
ALLOCATION
FORMULA.—Amounts
under this paragraph shall be allocated under a
formula that reflects the additional cost of car-
rying out planning, programming, and project
selection responsibilities in complex metropolitan
planning areas under sections 5303, 5304, and
5306.
‘‘(d) STATE PLANNING AND RESEARCH PROGRAM.—
‘‘(1) IN GENERAL.—The Secretary shall allocate
amounts made available pursuant to subsection
(g)(3)(B) to States for grants and contracts to carry
out sections 5304, 5306, 5315, and 5322 so that each
State receives an amount equal to the ratio of the
population in urbanized areas in that State, divided
by the total population in urbanized areas in all
States, as shown by the latest available decennial cen-
sus.
‘‘(2) MINIMUM ALLOCATION.—Each State shall
receive not less than 0.5 percent of the amount allo-
cated under this subsection.
‘‘(3) REALLOCATION.—A State may authorize
part of the amount made available under this sub-
section to be used to supplement amounts available
under subsection (c).
‘‘(e) PLANNING CAPACITY BUILDING PROGRAM.—
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‘‘(1) ESTABLISHMENT.—The Secretary shall es-
tablish a Planning Capacity Building Program (re-
ferred to in this subsection as the ‘‘Program’’) to sup-
port and fund innovative practices and enhancements
in transportation planning.
‘‘(2) PURPOSE.—The purpose of the Program
shall be to promote activities that support and
strengthen the planning processes required under this
section and sections 5303 and 5304.
‘‘(3) ADMINISTRATION.—The Program shall be
administered by the Federal Transit Administration
in cooperation with the Federal Highway Adminis-
tration.
‘‘(4) USE OF FUNDS.—
‘‘(A) IN GENERAL.—Appropriations author-
ized under subsection (g)(1) to carry out this
subsection may be used—
‘‘(i) to provide incentive grants to
States, metropolitan planning organiza-
tions, and public transportation operators;
and
‘‘(ii) to conduct research, disseminate
information, and provide technical assist-
ance.
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‘‘(B) GRANTS, CONTRACTS, COOPERATIVE
AGREEMENTS.—In carrying out the activities de-
scribed in subparagraph (A), the Secretary
may—
‘‘(i) expend appropriated funds di-
rectly; or
‘‘(ii) award grants to, or enter into
contracts, cooperative agreements, and other
transactions with, a Federal agency, State
agency, local governmental authority, asso-
ciation, nonprofit or for-profit entity, or in-
stitution of higher education.
‘‘(f) GOVERNMENT’S SHARE
OF COSTS.—Amounts
made available to carry out subsections (c), (d), and (e)
may not exceed 80 percent of the costs of the activity unless
the Secretary of Transportation determines that it is in the
interest of the Government not to require State or local
matching funds.
‘‘(g) ALLOCATION OF FUNDS.—Of the amounts made
available under section 5338(b)(2)(B) for fiscal year 2006
and each fiscal year thereafter to carry out this section—
‘‘(1) $5,000,000 shall be allocated for the Plan-
ning Capacity Building Program established under
subsection (e);
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‘‘(2) $20,000,000 shall be allocated for grants
under subsection (a)(2) for alternatives analyses re-
quired by section 5309(e)(2)(A); and
‘‘(3) of the remaining amount—
‘‘(A) 82.72 percent shall be allocated for the
metropolitan planning program described in
subsection (d); and
‘‘(B) 17.28 percent shall be allocated to
carry out subsection (b).
‘‘(h) REALLOCATIONS.—Any amount allocated under
this section that has not been used 3 years after the end
of the fiscal year in which the amount was allocated shall
be reallocated among the States.’’.
(b) CONFORMING AMENDMENT.—The item relating to
section 5308 in the table of sections for chapter 53 is amend-
ed to read as follows:
‘‘5308. Planning programs.’’.
SEC. 6011. CAPITAL INVESTMENT PROGRAM.
(a) SECTION HEADING.—The section heading of sec-
tion 5309 is amended to read as follows:
‘‘§ 5309. Capital investment grants’’.
(b) 
GENERAL
AUTHORITY.—Section 
5309(a) 
is
amended—
(1) in paragraph (1)—
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(A) by striking ‘‘(1) The Secretary of
Transportation may make grants and loans’’
and inserting the following:
‘‘(1) GRANTS AUTHORIZED.—The Secretary may
award grants’’;
(B) in subparagraph (A), by striking ‘‘al-
ternatives analysis related to the development of
systems,’’;
(C) by striking subparagraphs (B), (C),
(D), and (G);
(D) by redesignating subparagraphs (E),
(F), and (H) as subparagraphs (B), (C), and
(D), respectively;
(E) in subparagraph (C), as redesignated,
by striking the semicolon at the end and insert-
ing ‘‘, including programs of bus and bus-related
projects for assistance to subrecipients which are
public agencies, private companies engaged in
public transportation, or private nonprofit orga-
nizations; and’’; and
(F) in subparagraph (D), as redesignated—
(i) by striking ‘‘to support fixed guide-
way systems’’; and
(ii) by striking ‘‘dedicated bus and
high occupancy vehicle’’;
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(2) by amending paragraph (2) to read as fol-
lows:
‘‘(2) GRANTEE REQUIREMENTS.—
‘‘(A) GRANTEE IN URBANIZED AREA.—The
Secretary shall require that any grants awarded
under this section to a recipient or subrecipient
located in an urbanized area shall be subject to
all terms, conditions, requirements, and provi-
sions that the Secretary determines to be nec-
essary or appropriate for the purposes of this
section, including requirements for the disposi-
tion of net increases in the value of real property
resulting from the project assisted under this sec-
tion.
‘‘(B) GRANTEE NOT IN URBANIZED AREA.—
The Secretary shall require that any grants
awarded under this section to a recipient or sub-
recipient not located in an urbanized area shall
be subject to the same terms, conditions, require-
ments, and provisions as a recipient or sub-
recipient of assistance under section 5311.
‘‘(C) SUBRECIPIENT.—The Secretary shall
require that any private, nonprofit organization
that is a subrecipient of a grant awarded under
this section shall be subject to the same terms,
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conditions, requirements, and provisions as a
subrecipient of assistance under section 5310.
‘‘(D) 
STATEWIDE
TRANSIT
PROVIDER
GRANTEES.—A statewide transit provider that
receives a grant under this section shall be sub-
ject to the terms, conditions, requirements, and
provisions of this section or section 5311, con-
sistent with the scope and purpose of the grant
and the location of the project.’’; and
(3) by adding at the end the following:
‘‘(3) 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 findings
required under this subsection.’’.
(c) DEFINED TERM.—Section 5309(b) is amended to
read as follows:
‘‘(b) DEFINED TERM.—As used in this section, the
term ‘alternatives analysis’ means a study conducted as
part of the transportation planning process required under
sections 5303 and 5304, which includes—
‘‘(1) an assessment of a wide range of public
transportation alternatives designed to address a
transportation problem in a corridor or subarea;
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‘‘(2) sufficient information to enable the Sec-
retary to make the findings of project justification
and local financial commitment required under this
section;
‘‘(3) the selection of a locally preferred alter-
native; and
‘‘(4) the adoption of the locally preferred alter-
native as part of the long-range transportation plan
required under section 5303.’’.
(d) GRANT
REQUIREMENTS.—Section 5309(d) is
amended to read as follows:
‘‘(d) GRANT REQUIREMENTS.—The Secretary may not
approve a grant for a project under this section unless the
Secretary determines that—
‘‘(1) the project is part of an approved transpor-
tation plan and program of projects required under
sections 5303, 5304, and 5306; and
‘‘(2) the applicant has, or will have—
‘‘(A) the legal, financial, and technical ca-
pacity to carry out the project, including safety
and security aspects of the project;
‘‘(B) satisfactory continuing control over
the use of the equipment or facilities; and
‘‘(C) the capability and willingness to
maintain the equipment or facilities.’’.
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(e) MAJOR
CAPITAL
INVESTMENT
PROJECTS
OF
$75,000,000 OR MORE.—Section 5309(e) is amended to
read as follows:
‘‘(e) MAJOR CAPITAL INVESTMENT PROJECTS
OF
$75,000,000 OR MORE.—
‘‘(1) FULL FUNDING GRANT AGREEMENT.—The
Secretary shall enter into a full funding grant agree-
ment, based on the evaluations and ratings required
under this subsection, with each grantee receiving not
less than $75,000,000 under this subsection for a new
fixed guideway capital project that—
‘‘(A) is authorized for final design and con-
struction; and
‘‘(B) has been rated as medium, medium-
high, or high, in accordance with paragraph
(5)(B).
‘‘(2) DETERMINATIONS.—The Secretary may not
award a grant under this subsection for a new fixed
guideway capital project unless the Secretary deter-
mines that the proposed project is—
‘‘(A) based on the results of an alternatives
analysis and preliminary engineering;
‘‘(B) justified based on a comprehensive re-
view of its mobility improvements, environ-
mental benefits, cost-effectiveness, operating effi-
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ciencies, economic development effects, and public
transportation supportive land use patterns and
policies; and
‘‘(C) supported by an acceptable degree of
local financial commitment, including evidence
of stable and dependable financing sources to
construct the project, and maintain and operate
the entire public transportation system, while
ensuring that the extent and quality of existing
public transportation services are not degraded.
‘‘(3) EVALUATION OF PROJECT JUSTIFICATION.—
In making the determinations under paragraph
(2)(B) for a major capital investment grant, the Sec-
retary shall analyze, evaluate, and consider—
‘‘(A) the results of the alternatives analysis
and preliminary engineering for the proposed
project;
‘‘(B) the reliability of the forecasts of costs
and utilization made by the recipient and the
contractors to the recipient;
‘‘(C) the direct and indirect costs of relevant
alternatives;
‘‘(D) factors such as—
‘‘(i) congestion relief;
‘‘(ii) improved mobility;
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‘‘(iii) air pollution;
‘‘(iv) noise pollution;
‘‘(v) energy consumption; and
‘‘(vi) all associated ancillary and miti-
gation costs necessary to carry out each al-
ternative analyzed;
‘‘(E) reductions in local infrastructure costs
achieved through compact land use development
and positive impacts on the capacity, utiliza-
tion, or longevity of other surface transportation
assets and facilities;
‘‘(F) the cost of suburban sprawl;
‘‘(G) the degree to which the project in-
creases the mobility of the public transportation
dependent population or promotes economic de-
velopment;
‘‘(H) population density and current tran-
sit ridership in the transportation corridor;
‘‘(I) the technical capability of the grant re-
cipient to construct the project;
‘‘(J) any adjustment to the project justifica-
tion necessary to reflect differences in local land,
construction, and operating costs; and
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‘‘(K) other factors that the Secretary deter-
mines to be appropriate to carry out this chap-
ter.
‘‘(4) EVALUATION OF LOCAL FINANCIAL COMMIT-
MENT.—
‘‘(A) IN GENERAL.—In evaluating a project
under paragraph (2)(C), the Secretary shall re-
quire that—
‘‘(i) the proposed project plan provides
for the availability of contingency amounts
that the Secretary determines to be reason-
able to cover unanticipated cost increases;
‘‘(ii) each proposed local source of cap-
ital and operating financing is stable, reli-
able, and available within the proposed
project timetable; and
‘‘(iii) local resources are available to
recapitalize and operate the overall pro-
posed public transportation system, includ-
ing essential feeder bus and other services
necessary to achieve the projected ridership
levels, while ensuring that the extent and
quality of existing public transportation
services are not degraded.
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‘‘(B) EVALUATION CRITERIA.—In assessing
the stability, reliability, and availability of pro-
posed sources of local financing under paragraph
(2)(C), the Secretary shall consider—
‘‘(i) the reliability of the forecasts of
costs and utilization made by the recipient
and the contractors to the recipient;
‘‘(ii) existing grant commitments;
‘‘(iii) the degree to which financing
sources are dedicated to the proposed pur-
poses;
‘‘(iv) any debt obligation that exists, or
is proposed by the recipient, for the pro-
posed project or other public transportation
purpose; and
‘‘(v) the extent to which the project has
a local financial commitment that exceeds
the required non-Federal share of the cost of
the project, provided that if the Secretary
gives priority to financing projects that in-
clude more than the non-Federal share re-
quired under subsection (h), the Secretary
shall give equal consideration to differences
in the fiscal capacity of State and local gov-
ernments.
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‘‘(5) PROJECT ADVANCEMENT AND RATINGS.—
‘‘(A) PROJECT ADVANCEMENT.—A proposed
project under this subsection shall not advance
from alternatives analysis to preliminary engi-
neering or from preliminary engineering to final
design and construction unless the Secretary de-
termines that the project meets the requirements
of this section and there is a reasonable likeli-
hood that the project will continue to meet such
requirements.
‘‘(B) RATINGS.—In making a determina-
tion under subparagraph (A), the Secretary shall
evaluate and rate the project on a 5-point scale
(high, medium-high, medium, medium-low, or
low) based on the results of the alternatives anal-
ysis, the project justification criteria, and the de-
gree of local financial commitment, as required
under this subsection. In rating the projects, the
Secretary shall provide, in addition to the over-
all project rating, individual ratings for each of
the criteria established by regulation.
‘‘(6) APPLICABILITY.—This subsection shall not
apply to projects for which the Secretary has issued
a letter of intent or entered into a full funding grant
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agreement before the date of enactment of the Federal
Public Transportation Act of 2005.
‘‘(7) RULEMAKING.—Not later than 240 days
after the date of enactment of the Federal Public
Transportation Act of 2005, the Secretary shall issue
regulations on the manner by which the Secretary
shall evaluate and rate projects based on the results
of alternatives analysis, project justification, and
local financial commitment, in accordance with this
subsection.
‘‘(8) POLICY GUIDANCE.—
‘‘(A) PUBLICATION.—The Secretary shall
publish policy guidance regarding the new starts
project review and evaluation process—
‘‘(i) not later than 120 days after the
date of enactment of the Federal Public
Transportation Act of 2005; and
‘‘(ii) each time significant changes are
made by the Secretary to the new starts
project review and evaluation process and
criteria, but not less frequently than once
every 2 years.
‘‘(B) PUBLIC COMMENT AND RESPONSE.—
The Secretary shall—
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‘‘(i) invite public comment to the pol-
icy guidance published under subparagraph
(A); and
‘‘(ii) publish a response to the com-
ments received under clause (i).’’.
(f) MAJOR CAPITAL INVESTMENT PROJECTS OF LESS
THAN $75,000,000.—Section 5309(f) is amended to read as
follows:
‘‘(f) MAJOR CAPITAL INVESTMENT PROJECTS OF LESS
THAN $75,000,000.—
‘‘(1) PROJECT
CONSTRUCTION
GRANT
AGREE-
MENT.—
‘‘(A) IN
GENERAL.—The Secretary shall
enter into a project construction grant agree-
ment, based on evaluations and ratings required
under this subsection, with each grantee receiv-
ing less than $75,000,000 under this subsection
for a new fixed guideway or corridor improve-
ment capital project that—
‘‘(i) is authorized by law; and
‘‘(ii) has been rated as medium, me-
dium-high, or high, in accordance with
paragraph (3)(B).
‘‘(B) CONTENTS.—
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‘‘(i) 
IN
GENERAL.—An 
agreement
under this paragraph shall specify—
‘‘(I) the scope of the project to be
constructed;
‘‘(II) the estimated net cost of the
project;
‘‘(III) the schedule under which
the project shall be constructed;
‘‘(IV) the maximum amount of
funding to be obtained under this sub-
section;
‘‘(V) the proposed schedule for ob-
ligation of future Federal grants; and
‘‘(VI) the sources of non-Federal
funding.
‘‘(ii) 
ADDITIONAL
FUNDING.—The
agreement may include a commitment on
the part of the Secretary to provide funding
for the project in future fiscal years.
‘‘(C) FULL FUNDING GRANT AGREEMENT.—
An agreement under this paragraph shall be con-
sidered a full funding grant agreement for the
purposes of subsection (g).
‘‘(2) SELECTION PROCESS.—
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‘‘(A) SELECTION CRITERIA.—The Secretary
may not award a grant under this subsection for
a proposed project unless the Secretary deter-
mines that the project is—
‘‘(i) based on the results of planning
and alternatives analysis;
‘‘(ii) justified based on a review of its
public transportation supportive land use
policies, cost effectiveness, and effect on local
economic development; and
‘‘(iii) supported by an acceptable de-
gree of local financial commitment.
‘‘(B) PLANNING
AND
ALTERNATIVES.—In
evaluating a project under subparagraph (A)(i),
the Secretary shall analyze and consider the re-
sults of planning and alternatives analysis for
the project.
‘‘(C) PROJECT JUSTIFICATION.—In making
the determinations under subparagraph (A)(ii),
the Secretary shall—
‘‘(i) determine the degree to which local
land use policies are supportive of the pub-
lic transportation project and the degree to
which the project is likely to achieve local
developmental goals;
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‘‘(ii) determine the cost effectiveness of
the project at the time of the initiation of
revenue service;
‘‘(iii) determine the degree to which the
project will have a positive effect on local
economic development;
‘‘(iv) consider the reliability of the
forecasts of costs and ridership associated
with the project; and
‘‘(v) consider other factors that the Sec-
retary determines to be appropriate to
carry out this subsection.
‘‘(D) LOCAL FINANCIAL COMMITMENT.—For
purposes of subparagraph (A)(iii), the Secretary
shall require that each proposed local source of
capital and operating financing is stable, reli-
able, and available within the proposed project
timetable.
‘‘(3) ADVANCEMENT OF PROJECT TO DEVELOP-
MENT AND CONSTRUCTION.—
‘‘(A) IN
GENERAL.—A proposed project
under this subsection may not advance from the
planning and alternatives analysis stage to
project development and construction unless—
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‘‘(i) the Secretary finds that the project
meets the requirements of this subsection
and there is a reasonable likelihood that the
project will continue to meet such require-
ments; and
‘‘(ii) the metropolitan planning orga-
nization has adopted the locally preferred
alternative for the project into the long-
range transportation plan.
‘‘(B) EVALUATION.—In making the findings
under subparagraph (A), the Secretary shall
evaluate and rate the project as high, medium-
high, medium, medium-low, or low, based on the
results of the analysis of the project justification
criteria and the degree of local financial commit-
ment, as required under this subsection.
‘‘(4) IMPACT REPORT.—
‘‘(A) IN
GENERAL.—Not later than 240
days after the date of enactment of the Federal
Public Transportation Act of 2005, the Federal
Transit Administration shall submit a report on
the methodology to be used in evaluating the
land use and economic development impacts of
non-fixed guideway or partial fixed guideway
projects to—
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‘‘(i) the Committee on Banking, Hous-
ing, and Urban Affairs of the Senate; and
‘‘(ii) the Committee on Transportation
and Infrastructure of the House of Rep-
resentatives.
‘‘(B) CONTENTS.—The report submitted
under subparagraph (A) shall address any quali-
tative and quantitative differences between fixed
guideway and non-fixed guideway projects with
respect to land use and economic development
impacts.
‘‘(5) REGULATIONS.—Not later than 120 days
after the date of enactment of the Federal Public
Transportation Act of 2005, the Secretary shall issue
regulations establishing an evaluation and rating
process for proposed projects under this subsection
that is based on the results of project justification and
local financial commitment, as required under this
subsection.’’.
(g) FULL FUNDING GRANT AGREEMENTS.—Section
5309(g)(2) is amended by adding at the end the following:
‘‘(C) BEFORE AND AFTER STUDY.—
‘‘(i) IN
GENERAL.—Each full funding grant
agreement shall require the applicant to conduct a
study that—
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‘‘(I) describes and analyzes the impacts of
the new start project on transit services and
transit ridership;
‘‘(II) evaluates the consistency of predicted
and actual project characteristics and perform-
ance; and
‘‘(III) identifies sources of differences be-
tween predicted and actual outcomes.
‘‘(ii) INFORMATION COLLECTION AND ANALYSIS
PLAN.—
‘‘(I) SUBMISSION
OF
PLAN.—Applicants
seeking a full funding grant agreement shall sub-
mit a complete plan for the collection and anal-
ysis of information to identify the impacts of the
new start project and the accuracy of the fore-
casts prepared during the development of the
project. Preparation of this plan shall be in-
cluded in the full funding grant agreement as an
eligible activity.
‘‘(II) CONTENTS OF PLAN.—The plan sub-
mitted under subclause (I) shall provide for—
‘‘(aa) the collection of data on the cur-
rent transit system regarding transit service
levels and ridership patterns, including ori-
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gins and destinations, access modes, trip
purposes, and rider characteristics;
‘‘(bb) documentation of the predicted
scope, service levels, capital costs, operating
costs, and ridership of the project;
‘‘(cc) collection of data on the transit
system 2 years after the opening of the new
start project, including analogous informa-
tion on transit service levels and ridership
patterns and information on the as-built
scope and capital costs of the new start
project; and
‘‘(dd) analysis of the consistency of
predicted project characteristics with the
after data.
‘‘(D) COLLECTION OF DATA ON CURRENT SYSTEM.—
To be eligible for a full funding grant agreement, recipients
shall have collected data on the current system, according
to the plan required, before the beginning of construction
of the proposed new start project. Collection of this data
shall be included in the full funding grant agreement as
an eligible activity.
‘‘(E) PUBLIC
PRIVATE
PARTNERSHIP
PILOT
PRO-
GRAM.—
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‘‘(i) AUTHORIZATION.—The Secretary may es-
tablish a pilot program to demonstrate the advantages
of public-private partnerships for certain fixed guide-
way systems development projects.
‘‘(ii) 
IDENTIFICATION
OF
QUALIFIED
PROJECTS.—The Secretary shall identify qualified
public-private partnership projects as permitted by
applicable State and local enabling laws and work
with project sponsors to enhance project delivery and
reduce overall costs.’’.
(h) GOVERNMENT SHARE OF NET PROJECT COST.—
Section 5309(h) is amended to read as follows:
‘‘(h) GOVERNMENT
SHARE
OF
ADJUSTED
NET
PROJECT COST.—
‘‘(1) IN GENERAL.—The Secretary shall estimate
the net project cost based on engineering studies, stud-
ies of economic feasibility, and information on the ex-
pected use of equipment or facilities.
‘‘(2) ADJUSTMENT
FOR
COMPLETION
UNDER
BUDGET.—The Secretary may adjust the final net
project cost of a major capital investment project
evaluated under subsections (e) and (f) to include the
cost of eligible activities not included in the originally
defined project if the Secretary determines that the