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originally defined project has been completed at a cost
that is significantly below the original estimate.
‘‘(3) MAXIMUM GOVERNMENT SHARE.—
‘‘(A) IN GENERAL.—A grant for the project
shall be for 80 percent of the net project cost, or
the net project cost as adjusted under paragraph
(2), unless the grant recipient requests a lower
grant percentage.
‘‘(B) EXCEPTIONS.—The Secretary may
provide a higher grant percentage than requested
by the grant recipient if—
‘‘(i) the Secretary determines that the
net project cost of the project is not more
than 10 percent higher than the net project
cost estimated at the time the project was
approved for advancement into preliminary
engineering; and
‘‘(ii) the ridership estimated for the
project is not less than 90 percent of the
ridership estimated for the project at the
time the project was approved for advance-
ment into preliminary engineering.
‘‘(4) OTHER SOURCES.—The costs not funded by
a grant under this section may be funded from—
‘‘(A) an undistributed cash surplus;
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‘‘(B) a replacement or depreciation cash
fund or reserve; or
‘‘(C) new capital, including any Federal
funds that are eligible to be expended for trans-
portation.
‘‘(5) PLANNED EXTENSION TO FIXED GUIDEWAY
SYSTEM.—In addition to amounts allowed under
paragraph (1), a planned extension to a fixed guide-
way system may include the cost of rolling stock pre-
viously purchased if the Secretary determines that
only non-Federal funds were used and that the pur-
chase was made for use on the extension. A refund or
reduction of the costs not funded by a grant under
this section may be made only if a refund of a pro-
portional amount of the grant is made at the same
time.
‘‘(6) EXCEPTION.—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 amounts
allowed under paragraph (4).’’.
(i) LOAN PROVISIONS AND FISCAL CAPACITY CONSID-
ERATIONS.—Section 5309 is amended—
(1) by striking subsections (i), (j), (k), and (l);
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(2) by redesignating subsections (m) and (n) as
subsections (i) and (j), respectively;
(3) by striking subsection (o) (as added by sec-
tion 3009(i) of the Federal Transit Act of 1998); and
(4) by redesignating subsections (o) and (p) as
subsections (k) and (l), respectively.
(j) ALLOCATING AMOUNTS.—Section 5309(i), as redes-
ignated, is amended to read as follows:
‘‘(i) ALLOCATING AMOUNTS.—
‘‘(1) FISCAL YEAR 2005.—Of the amounts made
available or appropriated for fiscal year 2005 under
section 5338(a)(3)—
‘‘(A) $1,437,829,600 shall be allocated for
projects of not less than $75,000,000 for major
capital projects for new fixed guideway systems
and extensions of such systems under subsection
(e) and projects for new fixed guideway or cor-
ridor improvement capital projects under sub-
section (f);
‘‘(B) $1,204,684,800 shall be allocated for
capital projects for fixed guideway moderniza-
tion; and
‘‘(C) $669,600,000 shall be allocated for
capital projects for buses and bus-related equip-
ment and facilities.
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‘‘(2) IN GENERAL.—Of the amounts made avail-
able or appropriated for fiscal year 2006 and each
fiscal year thereafter for grants under this section
pursuant to subsections (b)(4) and (c) of section
5338—
‘‘(A) the amounts appropriated under sec-
tion 5338(c) shall be allocated for major capital
projects for—
‘‘(i) new fixed guideway systems and
extensions of not less than $75,000,000, in
accordance with subsection (e); and
‘‘(ii) projects for new fixed guideway
or corridor improvement capital projects, in
accordance with subsection (f); and
‘‘(B) the amounts made available under sec-
tion 5338(b)(4) shall be allocated for capital
projects for buses and bus-related equipment and
facilities.
‘‘(3) FIXED
GUIDEWAY
MODERNIZATION.—The
amounts made available for fixed guideway mod-
ernization under section 5338(b)(2)(K) for fiscal year
2006 and each fiscal year thereafter shall be allocated
in accordance with section 5337.
‘‘(4) PRELIMINARY
ENGINEERING.—Not more
that 8 percent of the allocation described in para-
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graphs (1)(A) and (2)(A) may be expended on pre-
liminary engineering.
‘‘(5) FUNDING
FOR
FERRY
BOATS.—Of the
amounts described in paragraphs (1)(A) and (2)(A),
$10,400,000 shall be available in each of the fiscal
years 2005 through 2009 for capital projects in Alas-
ka and Hawaii for new fixed guideway systems and
extension projects utilizing ferry boats, ferry boat ter-
minals, or approaches to ferry boat terminals.
‘‘(6) BUS AND BUS FACILITY GRANTS.—
‘‘(A) CONSIDERATIONS.—In making grants
under paragraphs (1)(C) and (2)(B), the Sec-
retary shall consider the age and condition of
buses, bus fleets, related equipment, and bus-re-
lated facilities.
‘‘(B) 
PROJECTS
NOT
IN
URBANIZED
AREAS.—Of the amounts made available under
paragraphs (1)(C) and (2)(B), not less than 5.5
percent shall be available in each fiscal year for
projects that are not in urbanized areas.
‘‘(C) INTERMODAL
TERMINALS.—Of the
amounts made available under paragraphs
(1)(C) and (2)(B), not less than $75,000,000
shall be available in each fiscal year for inter-
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modal terminal projects, including the intercity
bus portion of such projects.’’.
(k) REPORTS.—Section 5309 is amended by inserting
at the end the following:
‘‘(m) REPORTS.—
‘‘(1) 
ANNUAL
REPORT
ON
FUNDING
REC-
OMMENDATIONS.—
‘‘(A) IN GENERAL.—Not later than the first
Monday of February of each year, the Secretary
shall submit a report on funding recommenda-
tions to—
‘‘(i) the Committee on Transportation
and Infrastructure of the House of Rep-
resentatives;
‘‘(ii) the Committee on Banking, Hous-
ing, and Urban Affairs of the Senate;
‘‘(iii) the Subcommittee on the Depart-
ments of Transportation, Treasury, Hous-
ing and Urban Development, The Judici-
ary, District of Columbia, and Independent
Agencies of the Committee on Appropria-
tions of the House of Representatives; and
‘‘(iv) the Subcommittee on Transpor-
tation, Treasury, and General Government
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of the Committee on Appropriations of the
Senate.
‘‘(B) CONTENTS.—The report submitted
under subparagraph (A) shall contain—
‘‘(i) a proposal on the allocation of
amounts to finance grants for capital in-
vestment projects among grant applicants;
‘‘(ii) a recommendation of projects to
be funded based on—
‘‘(I) the evaluations and ratings
determined under subsection (e) and
(f); and
‘‘(II) existing commitments and
anticipated funding levels for the sub-
sequent 3 fiscal years; and
‘‘(iii) detailed ratings and evaluations
on each project recommended for funding.
‘‘(2) TRIANNUAL
REPORTS
ON
PROJECT
RAT-
INGS.—
‘‘(A) IN GENERAL.—Not later than the first
Monday of February, the first Monday of June,
and the first Monday of October of each year, the
Secretary shall submit a report on project rat-
ings to—
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‘‘(i) the Committee on Transportation
and Infrastructure of the House of Rep-
resentatives;
‘‘(ii) the Committee on Banking, Hous-
ing, and Urban Affairs of the Senate;
‘‘(iii) the Subcommittee on the Depart-
ments of Transportation, Treasury, Hous-
ing and Urban Development, The Judici-
ary, District of Columbia, and Independent
Agencies of the Committee on Appropria-
tions of the House of Representatives; and
‘‘(iv) the Subcommittee on Transpor-
tation, Treasury, and General Government
of the Committee on Appropriations of the
Senate.
‘‘(B) CONTENTS.—Each report submitted
under subparagraph (A) shall contain—
‘‘(i) a summary of the ratings of all
capital investment projects for which fund-
ing was requested under this section;
‘‘(ii) detailed ratings and evaluations
on the project of each applicant that had
significant changes to the finance or project
proposal or has completed alternatives anal-
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ysis or preliminary engineering since the
date of the latest report; and
‘‘(iii) all relevant information sup-
porting the evaluation and rating of each
updated project, including a summary of
the financial plan of each updated project.
‘‘(3) BEFORE AND AFTER STUDY REPORTS.—Not
later than the first Monday of August of each year,
the Secretary shall submit a report containing a sum-
mary of the results of the studies conducted under
subsection (g)(2) to—
‘‘(A) the Committee on Transportation and
Infrastructure of the House of Representatives;
‘‘(B) the Committee on Banking, Housing,
and Urban Affairs of the Senate;
‘‘(C) the Subcommittee on the Departments
of Transportation, Treasury, Housing and
Urban Development, The Judiciary, District of
Columbia, and Independent Agencies of the Com-
mittee on Appropriations of the House of Rep-
resentatives; and
‘‘(D) the Subcommittee on Transportation,
Treasury, and General Government of the Com-
mittee on Appropriations of the Senate.
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‘‘(4) CONTRACTOR
PERFORMANCE
ASSESSMENT
REPORT.—
‘‘(A) IN
GENERAL.—Not later than 180
days after the enactment of the Federal Public
Transportation Act of 2005, and each year there-
after, the Secretary shall submit a report ana-
lyzing the consistency and accuracy of cost and
ridership estimates made by each contractor to
public transportation agencies developing major
investment projects to the committees and sub-
committees listed under paragraph (3).
‘‘(B) CONTENTS.—The report submitted
under subparagraph (A) shall compare the cost
and ridership estimates made at the time
projects are approved for entrance into prelimi-
nary engineering with—
‘‘(i) estimates made at the time
projects are approved for entrance into final
design;
‘‘(ii) costs and ridership when the
project commences revenue operation; and
‘‘(iii) costs and ridership when the
project has been in operation for 2 years.
‘‘(5) ANNUAL GOVERNMENT ACCOUNTABILITY OF-
FICE REVIEW.—
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‘‘(A) REVIEW.—The Comptroller General of
the United States shall conduct an annual re-
view of the processes and procedures for evalu-
ating and rating projects and recommending
projects and the Secretary’s implementation of
such processes and procedures.
‘‘(B) REPORT.—Not later than 90 days
after the submission of each report required
under paragraph (1), the Comptroller General
shall submit a report to Congress that summa-
rizes the results of the review conducted under
subparagraph (A).
‘‘(6) CONTRACTOR PERFORMANCE INCENTIVE RE-
PORT.—Not later than 180 days after the enactment
of the Federal Public Transportation Act of 2005, the
Secretary shall submit a report to the committees and
subcommittees listed under paragraph (3) on the suit-
ability of allowing contractors to public transpor-
tation agencies that undertake major capital invest-
ments under this section to receive performance incen-
tive awards if a project is completed for less than the
original estimated cost.’’.
(l) RESTRICTIONS ON USE OF BUS CATEGORY FUNDS
FOR FIXED GUIDEWAY PROJECTS.—Funds provided to
grantees under the bus and bus facility category for fixed
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guideway ferry and gondola projects in the Department of
Transportation and Related Agencies Appropriations Acts
for any of fiscal years 1998 through 2005, or accompanying
committee reports, that remain available and unobligated
may be used for fixed guideway projects under this section.
(m) MIAMI METRORAIL.—The Secretary may credit
funds provided by the Florida Department of Transpor-
tation for the extension of the Miami Metrorail System from
Earlington Heights to the Miami Intermodal Center to sat-
isfy the matching requirements of section 5309(h)(4) of title
49, United Stated Code, for the Miami North Corridor and
Miami East-West Corridor projects.
SEC. 6012. NEW FREEDOM FOR ELDERLY PERSONS AND
PERSONS WITH DISABILITIES.
(a) IN GENERAL.—Section 5310 is amended to read
as follows:
‘‘§ 5310. New freedom for elderly persons and persons
with disabilities
‘‘(a) GENERAL AUTHORITY.—
‘‘(1) 
AUTHORIZATION.—The 
Secretary 
may
award grants to a State for capital public transpor-
tation projects that are planned, designed, and car-
ried out to meet the needs of elderly individuals and
individuals with disabilities, with priority given to
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the needs of these individuals to access necessary
health care.
‘‘(2) ACQUISITION OF PUBLIC TRANSPORTATION
SERVICES.—A capital public transportation project
under this section may include acquiring public
transportation services as an eligible capital expense.
‘‘(3) ADMINISTRATIVE COSTS.—A State may use
not more than 15 percent of the amounts received
under this section to administer, plan, and provide
technical assistance for a project funded under this
section.
‘‘(b) ALLOTMENTS AMONG STATES.—
‘‘(1) IN GENERAL.—From amounts made avail-
able or appropriated in each fiscal year under sub-
sections (a)(1)(C)(iv) and (b)(2)(D) of section 5338
for grants under this section, the Secretary shall allot
amounts to each State under a formula based on the
number of elderly individuals and individuals with
disabilities in each State.
‘‘(2) TRANSFER OF FUNDS.—Any funds allotted
to a State under paragraph (1) may be transferred by
the State to the apportionments made under sections
5311(c) and 5336 if such funds are only used for eli-
gible projects selected under this section.
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‘‘(3) REALLOCATION OF FUNDS.—A State receiv-
ing a grant under this section may reallocate such
grant funds to—
‘‘(A) a private nonprofit organization;
‘‘(B) a public transportation agency or au-
thority; or
‘‘(C) a governmental authority that—
‘‘(i) has been approved by the State to
coordinate services for elderly individuals
and individuals with disabilities;
‘‘(ii) certifies that nonprofit organiza-
tions are not readily available in the area
that can provide the services described
under this subsection; or
‘‘(iii) will provide services to persons
with disabilities that exceed those services
required by the Americans with Disabilities
Act.
‘‘(c) GOVERNMENT SHARE.—
‘‘(1) MAXIMUM.—
‘‘(A) IN GENERAL.—A grant for a capital
project under this section may not exceed 80 per-
cent of the net capital costs of the project, as de-
termined by the Secretary.
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‘‘(B) EXCEPTION.—A State described in sec-
tion 120(d) of title 23 shall receive an increased
Government share in accordance with the for-
mula under that section.
‘‘(2) REMAINING COSTS.—The costs of a capital
project under this section that are not funded through
a grant under this section—
‘‘(A) may be funded from an undistributed
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 to or made available to any Federal
agency (other than the Department of Transpor-
tation, except for Federal Lands Highway funds)
that are eligible to be expended for transpor-
tation.
‘‘(3) EXCEPTION.—For purposes of paragraph
(2), 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.
‘‘(d) GRANT REQUIREMENTS.—
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‘‘(1) IN GENERAL.—A grant recipient under this
section shall be subject to the requirements of a grant
recipient under section 5307 to the extent the Sec-
retary determines to be appropriate.
‘‘(2) CERTIFICATION REQUIREMENTS.—
‘‘(A) FUND TRANSFERS.—A grant recipient
under this section that transfers funds to a
project funded under section 5336 in accordance
with subsection (b)(2) shall certify that the
project for which the funds are requested has
been coordinated with private nonprofit pro-
viders of services under this section.
‘‘(B) PROJECT SELECTION AND PLAN DE-
VELOPMENT.—Each grant recipient under this
section shall certify that—
‘‘(i) the projects selected were derived
from a locally developed, coordinated public
transit-human services transportation plan;
and
‘‘(ii) the plan was developed through a
process that included representatives of pub-
lic, private, and nonprofit transportation
and human services providers and partici-
pation by the public.
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‘‘(C) ALLOCATIONS
TO
SUBRECIPIENTS.—
Each grant recipient under this section shall cer-
tify that allocations of the grant to subrecipients,
if any, are distributed on a fair and equitable
basis.
‘‘(e) STATE PROGRAM OF PROJECTS.—
‘‘(1) SUBMISSION TO SECRETARY.—Each State
shall annually submit a program of transportation
projects to the Secretary for approval with an assur-
ance that the program provides for maximum feasible
coordination between transportation services funded
under this section and transportation services assisted
by other Federal sources.
‘‘(2) USE
OF
FUNDS.—Each State may use
amounts made available to carry out this section to
provide transportation services for elderly individuals
and individuals with disabilities if such services are
included in an approved State program of projects.
‘‘(f) LEASING VEHICLES.—Vehicles acquired under
this section may be leased to local governmental authorities
to improve transportation services designed to meet the
needs of elderly individuals and individuals with disabil-
ities.
‘‘(g) MEAL DELIVERY
FOR HOMEBOUND INDIVID-
UALS.—Public transportation service providers receiving
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assistance under this section or section 5311(c) may coordi-
nate and assist in regularly providing meal delivery service
for homebound individuals if the delivery service does not
conflict with providing public transportation service or re-
duce service to public transportation passengers.
‘‘(h) TRANSFERS OF FACILITIES AND EQUIPMENT.—
With the consent of the recipient in possession of a facility
or equipment acquired with a grant under this section, a
State may transfer the facility or equipment to any recipi-
ent eligible to receive assistance under this chapter if the
facility or equipment will continue to be used as required
under this section.
‘‘(i) FARES NOT REQUIRED.—This section does not re-
quire that elderly individuals and individuals with disabil-
ities be charged a fare.’’.
(b) CONFORMING AMENDMENT.—The item relating to
section 5310 in the table of sections for chapter 53 is amend-
ed to read as follows:
‘‘5310. New freedom for elderly persons and persons with disabilities.’’.
SEC. 6013. FORMULA GRANTS FOR OTHER THAN URBAN-
IZED AREAS.
(a) DEFINITIONS.—Section 5311(a) is amended to
read as follows:
‘‘(a) DEFINITIONS.—As used in this section, the fol-
lowing definitions shall apply:
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‘‘(1) RECIPIENT.—The term ‘recipient’ means a
State or Indian tribe that receives a Federal transit
program grant directly from the Federal Government.
‘‘(2) SUBRECIPIENT.—The term ‘subrecipient’
means a State or local governmental authority, a
nonprofit organization, or a private operator of pub-
lic transportation or intercity bus service that receives
Federal transit program grant funds indirectly
through a recipient.’’.
(b) 
GENERAL
AUTHORITY.—Section 
5311(b) 
is
amended—
(1) by amending paragraph (1) to read as fol-
lows:
‘‘(1) GRANTS AUTHORIZED.—Except as provided
under paragraph (2), the Secretary may award
grants under this section to recipients located in
areas other than urbanized areas for—
‘‘(A) public transportation capital projects;
‘‘(B) operating costs of equipment and fa-
cilities for use in public transportation; and
‘‘(C) the acquisition of public transpor-
tation services.’’;
(2) by redesignating paragraph (2) as para-
graph (3);
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(3) by inserting after paragraph (1) the fol-
lowing:
‘‘(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 annually submit the program de-
scribed in subparagraph (A) to the Secretary.
‘‘(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; and
‘‘(ii) the program provides the max-
imum feasible coordination of public trans-
portation service assisted under this section
with transportation service assisted by other
Federal sources.’’;
(4) in paragraph (3), as redesignated—
(A) by striking ‘‘(3) The Secretary of
Transportation’’ and inserting the following:
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‘‘(3) RURAL TRANSPORTATION ASSISTANCE PRO-
GRAM.—
‘‘(A) ESTABLISHMENT.—The Secretary’’;
(B) by striking ‘‘make’’ and inserting ‘‘use
not more than 2 percent of the amount made
available to carry out this section to award’’;
and
(C) by adding at the end the following:
‘‘(B) DATA COLLECTION.—
‘‘(i) REPORT.—Each grantee under
this section shall submit an annual report
to the Secretary containing information on
capital investment, operations, and service
provided with funds received under this sec-
tion, including—
‘‘(I) total annual revenue;
‘‘(II) sources of revenue;
‘‘(III) 
total 
annual 
operating
costs;
‘‘(IV) total annual capital costs;
‘‘(V) fleet size and type, and re-
lated facilities;
‘‘(VI) revenue vehicle miles; and
‘‘(VII) ridership.’’; and
(5) by adding after paragraph (3) the following:
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‘‘(4) Of the amount made available to carry out
paragraph (3)—
‘‘(A) not more than 15 percent may be used
to carry out projects of a national scope; and
‘‘(B) any amounts not used under subpara-
graph (A) shall be allocated to the States.’’.
(c) APPORTIONMENTS.—Section 5311(c) is amended to
read as follows:
‘‘(c) APPORTIONMENTS.—
‘‘(1) PUBLIC TRANSPORTATION ON INDIAN RES-
ERVATIONS.—Of the amounts made available or ap-
propriated for each fiscal year pursuant to sub-
sections (a)(1)(C)(v) and (b)(2)(F) of section 5338,
the following amounts shall be apportioned for grants
to Indian tribes for any purpose eligible under this
section, under such terms and conditions as may be
established by the Secretary:
‘‘(A) $8,000,000 for fiscal year 2006.
‘‘(B) $10,000,000 for fiscal year 2007.
‘‘(C) $12,000,000 for fiscal year 2008.
‘‘(D) $15,000,000 for fiscal year 2009.
‘‘(2) REMAINING
AMOUNTS.—Of the amounts
made available or appropriated for each fiscal year
pursuant to subsections (a)(1)(C)(v) and (b)(2)(F) of
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section 5338 that are not apportioned under para-
graph (1)—
‘‘(A) 20 percent shall be apportioned to the
States in accordance with paragraph (3); and
‘‘(B) 80 percent shall be apportioned to the
States in accordance with paragraph (4).
‘‘(3) APPORTIONMENTS BASED ON LAND AREA IN
NONURBANIZED AREAS.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), each State shall receive an amount
that is equal to the amount apportioned under
paragraph (2)(A) multiplied by the ratio of the
land area in areas other than urbanized areas in
that State and divided by the land area in all
areas other than urbanized areas in the United
States, as shown by the most recent decennial
census of population.
‘‘(B) MAXIMUM APPORTIONMENT.—No State
shall receive more than 5 percent of the amount
apportioned under this paragraph.
‘‘(4) APPORTIONMENTS BASED ON POPULATION
IN NONURBANIZED AREAS.—Each State shall receive
an amount equal to the amount apportioned under
paragraph (2)(B) multiplied by the ratio of the popu-
lation of areas other than urbanized areas in that
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State divided by the population of all areas other
than urbanized areas in the United States, as shown
by the most recent decennial census of population.’’.
(d) USE FOR ADMINISTRATIVE, PLANNING, AND TECH-
NICAL ASSISTANCE.—Section 5311(e) is amended—
(1) by striking ‘‘AND TECHNICAL ASSISTANCE.—
(1) The Secretary of Transportation’’ and inserting ‘‘,
PLANNING, AND TECHNICAL ASSISTANCE.—The Sec-
retary’’;
(2) by striking ‘‘to a recipient’’; and
(3) by striking paragraph (2).
(e) 
INTERCITY
BUS
TRANSPORTATION.—Section
5311(f) is amended—
(1) in paragraph (1)—
(A) by striking ‘‘(1)’’ and inserting the fol-
lowing:
‘‘(1) IN GENERAL.—’’; and
(B) by striking ‘‘after September 30, 1993,’’;
and
(2) in paragraph (2)—
(A) by striking ‘‘A State’’ and inserting
‘‘After consultation with affected intercity bus
service providers, a State’’; and
(B) by striking ‘‘of Transportation’’.
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(f) GOVERNMENT SHARE OF COSTS.—Section 5311(g)
is amended to read as follows:
‘‘(g) GOVERNMENT SHARE OF COSTS.—
‘‘(1) MAXIMUM GOVERNMENT SHARE.—
‘‘(A) CAPITAL PROJECTS.—
‘‘(i) IN GENERAL.—Except as provided
under clause (ii), a grant awarded under
this section for any purpose other than op-
erating assistance may not exceed 80 per-
cent of the net capital costs of the project,
as determined by the Secretary.
‘‘(ii) EXCEPTION.—A State described
in section 120(d) of title 23 shall receive a
Government share of the net capital costs in
accordance with the formula under that sec-
tion.
‘‘(B) OPERATING ASSISTANCE.—
‘‘(i) IN GENERAL.—Except as provided
under clause (ii), a grant made under this
section for operating assistance may not ex-
ceed 50 percent of the net operating costs of
the project, as determined by the Secretary.
‘‘(ii) EXCEPTION.—A State described
in section 120(d) of title 23 shall receive a
Government share of the net operating costs
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equal to 62.5 percent of the Government
share provided for under subparagraph
(A)(ii).
‘‘(2) OTHER FUNDING SOURCES.—Funds for a
project under this section that are not provided for by
a grant under this section—
‘‘(A) may be provided from—
‘‘(i) an undistributed cash surplus;
‘‘(ii) a replacement or depreciation
cash fund or reserve;
‘‘(iii) a service agreement with a State
or local social service agency or a private
social service organization; or
‘‘(iv) new capital; and
‘‘(B) may be derived from amounts appro-
priated to or made available to a Government
agency (other than the Department of Transpor-
tation, except for Federal Land Highway funds)
that are eligible to be expended for transpor-
tation.
‘‘(3) USE OF GOVERNMENT GRANT.—A State car-
rying out a program of operating assistance under
this section may not limit the level or extent of use
of the Government grant for the payment of operating
expenses.
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‘‘(4) EXCEPTION.—For purposes of paragraph
(2)(B), the prohibitions on the use of funds for match-
ing 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.’’.
(g) 
WAIVER
CONDITION.—Section 
5311(j)(1) 
is
amended by striking ‘‘but the Secretary of Labor may waive
the application of section 5333(b)’’ and inserting ‘‘if the
Secretary of Labor utilizes a Special Warranty that pro-
vides a fair and equitable arrangement to protect the inter-
ests of employees’’.
SEC. 6014. RESEARCH, DEVELOPMENT, DEMONSTRATION,
AND DEPLOYMENT PROJECTS.
(a) IN GENERAL.—Section 5312 is amended—
(1) by amending subsection (a) to read as fol-
lows:
‘‘(a) RESEARCH, DEVELOPMENT, AND DEMONSTRA-
TION PROJECTS.—
‘‘(1) IN
GENERAL.—The Secretary may make
grants, contracts, cooperative agreements, or other
transactions (including agreements with departments,
agencies, and instrumentalities of the United States
Government) for research, development, demonstration
or deployment projects, or evaluation of technology of
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national significance to public transportation that the
Secretary determines will improve public transpor-
tation service or help public transportation service
meet the total transportation needs at a minimum
cost.
‘‘(2) INFORMATION.—The Secretary may request
and receive appropriate information from any source.
‘‘(3) SAVINGS PROVISION.—This subsection does
not limit the authority of the Secretary under any
other law.’’;
(2) by striking subsections (b) and (c);
(3) by redesignating subsections (d) and (e) as
(b) and (c), respectively.
(4) in subsection (b)(2), as redesignated, by
striking ‘‘other agreements’’ and inserting ‘‘other
transactions’’; and
(5) in subsection (c)(2), as redesignated, by strik-
ing ‘‘public and private’’ and inserting ‘‘public or
private’’.
(b) CONFORMING AMENDMENTS.—
(1) SECTION HEADING.—The heading of section
5312 is amended to read as follows:
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‘‘§ 5312. Research, development, demonstration, and
deployment projects’’.
(2) TABLE OF SECTIONS.—The item relating to
section 5312 in the table of sections for chapter 53 is
amended to read as follows:
‘‘5312. Research, development, demonstration, and deployment projects.’’.
SEC. 6015. TRANSIT COOPERATIVE RESEARCH PROGRAM.
(a) IN GENERAL.—Section 5313 is amended—
(1) by striking subsection (b);
(2) in subsection (a)—
(A) in paragraph (1), by striking ‘‘(1) The
amounts made available under paragraphs (1)
and (2)C)(ii) of section 5338(c) of this title’’ and
inserting ‘‘The amounts made available under
subsections (a)(5)(C)(iii) and (b)(2)(G)(i) of sec-
tion 5338’’; and
(B) in paragraph (2), by striking ‘‘(2)’’ and
inserting the following:
‘‘(b) GOVERNMENT ASSISTANCE.—’’; and
(3) by amending subsection (c) to read as fol-
lows:
‘‘(c) GOVERNMENT SHARE.—If there would be a clear
and direct financial benefit to an entity under a grant or
contract financed under this section, the Secretary shall es-
tablish a Government share consistent with such benefit.’’.
(b) CONFORMING AMENDMENTS.—
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(1) SECTION HEADING.—The heading of section
5313 is amended to read as follows:
‘‘§ 5313. Transit cooperative research program’’.
(2) TABLE OF SECTIONS.—The item relating to
section 5313 in the table of sections for chapter 53 is
amended to read as follows:
‘‘5313. Transit cooperative research program.’’.
SEC. 6016. NATIONAL RESEARCH PROGRAMS.
(a) IN GENERAL.—Section 5314 is amended—
(1) in subsection (a)—
(A) by amending paragraph (1) to read as
follows:
‘‘(1) AVAILABILITY
OF
FUNDS.—The Secretary
may use amounts made available under subsections
(a)(5)(C)(iv) and (b)(2)(G)(iv) of section 5338 for
grants, contracts, cooperative agreements, or other
transactions for the purposes described in sections
5312, 5315, and 5322.’’;
(B) in paragraph (2), by striking ‘‘(2) Of’’
and inserting the following:
‘‘(2) ADA COMPLIANCE.—From’’;
(C) by amending paragraph (3) to read as
follows:
‘‘(3) SPECIAL
DEMONSTRATION
INITIATIVES.—
The Secretary may use not more than 25 percent of
the amounts made available under paragraph (1) for
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special demonstration initiatives, subject to terms
that the Secretary determines to be consistent with
this chapter. For a nonrenewable grant of not more
than $100,000, the Secretary shall provide expedited
procedures for complying with the requirements of
this chapter.’’;
(D) in paragraph (4)—
(i) by striking subparagraph (B); and
(ii) by redesignating subparagraph (C)
as subparagraph (B); and
(E) by adding at the end the following:
‘‘(6) MEDICAL
TRANSPORTATION
DEMONSTRA-
TION GRANTS.—
‘‘(A) GRANTS AUTHORIZED.—The Secretary
may award demonstration grants, from funds
made available under paragraph (1), to eligible
entities to provide transportation services to in-
dividuals to access dialysis treatments and other
medical treatments for renal disease.
‘‘(B) ELIGIBLE ENTITIES.—An entity shall
be eligible to receive a grant under this para-
graph if the entity—
‘‘(i) meets the conditions described in
section 501(c)(3) of the Internal Revenue
Code of 1986; or
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‘‘(ii) is an agency of a State or unit
of local government.
‘‘(C) USE OF FUNDS.—Grant funds received
under this paragraph may be used to provide
transportation services to individuals to access
dialysis treatments and other medical treatments
for renal disease.
‘‘(D) APPLICATION.—
‘‘(i) IN GENERAL.—Each eligible entity
desiring a grant under this paragraph shall
submit an application to the Secretary at
such time, at such place, and containing
such information as the Secretary may rea-
sonably require.
‘‘(ii) SELECTION
OF
GRANTEES.—In
awarding grants under this paragraph, the
Secretary shall give preference to eligible en-
tities from communities with—
‘‘(I) high incidence of renal dis-
ease; and
‘‘(II) limited access to dialysis fa-
cilities.
‘‘(E) RULEMAKING.—The Secretary shall
issue regulations to implement and administer
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the grant program established under this para-
graph.
‘‘(F) REPORT.—The Secretary shall submit
a report on the results of the demonstration
projects funded under this paragraph to the
Committee on Banking, Housing, and Urban Af-
fairs of the Senate and the Committee on Trans-
portation and Infrastructure of the House of
Representatives.’’; and
(2) by amending subsection (b) to read as fol-
lows:
‘‘(b) GOVERNMENT SHARE.—If there would be a clear
and direct financial benefit to an entity under a grant, con-
tract, cooperative agreement, or other transaction financed
under subsection (a) or section 5312, 5313, 5315, or 5322,
the Secretary shall establish a Government share consistent
with such benefit.’’.
(c) NATIONAL TECHNICAL ASSISTANCE CENTER FOR
SENIOR TRANSPORTATION; ALTERNATIVE FUELS STUDY.—
Section 5314 is amended by adding at the end the following:
‘‘(c) NATIONAL TECHNICAL ASSISTANCE CENTER FOR
SENIOR TRANSPORTATION.—
‘‘(1) 
ESTABLISHMENT.—The 
Secretary 
shall
award grants to a national not-for-profit organiza-
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tion for the establishment and maintenance of a na-
tional technical assistance center.
‘‘(2) ELIGIBILITY.—An organization shall be eli-
gible to receive the grant under paragraph (1) if the
organization—
‘‘(A) focuses significantly on serving the
needs of the elderly;
‘‘(B) has demonstrated knowledge and ex-
pertise in senior transportation policy and plan-
ning issues;
‘‘(C) has affiliates in a majority of the
States;
‘‘(D) has the capacity to convene local
groups to consult on operation and development
of senior transportation programs; and
‘‘(E) has established close working relation-
ships with the Federal Transit Administration
and the Administration on Aging.
‘‘(3) USE OF FUNDS.—The national technical as-
sistance center established under this section shall—
‘‘(A) gather best practices from throughout
the country and provide such practices to local
communities that are implementing senior trans-
portation programs;
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‘‘(B) work with teams from local commu-
nities to identify how they are successfully meet-
ing the transportation needs of senior and any
gaps in services in order to create a plan for an
integrated senior transportation program;
‘‘(C) provide resources on ways to pay for
senior transportation services;
‘‘(D) create a web site to publicize and cir-
culate information on senior transportation pro-
grams;
‘‘(E) establish a clearinghouse for print,
video, and audio resources on senior mobility;
and
‘‘(F) administer the demonstration grant
program established under paragraph (4).
‘‘(4) GRANTS AUTHORIZED.—
‘‘(A) IN GENERAL.—The national technical
assistance center established under this section,
in consultation with the Federal Transit Admin-
istration, shall award senior transportation dem-
onstration grants to—
‘‘(i) local transportation organizations;
‘‘(ii) State agencies;
‘‘(iii) units of local government; and
‘‘(iv) nonprofit organizations.
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‘‘(B) USE OF FUNDS.—Grant funds received
under this paragraph may be used to—
‘‘(i) evaluate the state of transpor-
tation services for senior citizens;
‘‘(ii) recognize barriers to mobility that
senior citizens encounter in their commu-
nities;
‘‘(iii) establish partnerships and pro-
mote coordination among community stake-
holders, including public, not-for-profit, and
for-profit providers of transportation serv-
ices for senior citizens;
‘‘(iv) identify future transportation
needs of senior citizens within local commu-
nities; and
‘‘(v) establish strategies to meet the
unique needs of healthy and frail senior
citizens.
‘‘(C) SELECTION OF GRANTEES.—The Sec-
retary shall select grantees under this subsection
based on a fair representation of various geo-
graphical locations throughout the United States.
‘‘(5) ALLOCATIONS.—From the funds made
available for each fiscal year under subsections
(a)(5)(C)(iv) and (b)(2)(G)(iv) of section 5338,
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$3,000,000 shall be allocated to carry out this sub-
section.
‘‘(d) ALTERNATIVE FUELS STUDY.—
‘‘(1) STUDY.—The Secretary shall conduct a
study of the actions necessary to facilitate the pur-
chase of increased volumes of alternative fuels (as de-
fined in section 301 of the Energy Policy Act of 1992
(42 U.S.C. 13211)) for use in public transit vehicles.
‘‘(2) SCOPE
OF
STUDY.—The study conducted
under this subsection shall focus on the incentives nec-
essary to increase the use of alternative fuels in public
transit vehicles, including buses, fixed guideway vehi-
cles, and ferries.
‘‘(3) CONTENTS.—The study shall consider—
‘‘(A) the environmental benefits of increased
use of alternative fuels in transit vehicles;
‘‘(B) existing opportunities available to
transit system operators that encourage the pur-
chase of alternative fuels for transit vehicle oper-
ation;
‘‘(C) existing barriers to transit system op-
erators that discourage the purchase of alter-
native fuels for transit vehicle operation, includ-
ing situations where alternative fuels that do not
require capital improvements to transit vehicles
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are disadvantaged over fuels that do require such
improvements; and
‘‘(D) the necessary levels and type of sup-
port necessary to encourage additional use of al-
ternative fuels for transit vehicle operation.
‘‘(4) RECOMMENDATIONS.—The study shall rec-
ommend regulatory and legislative alternatives that
will result in the increased use of alternative fuels in
transit vehicles.
‘‘(5) REPORT.—Not later than 1 year after the
date of enactment of the Federal Public Transpor-
tation Act of 2005, the Secretary shall submit the
study completed under this subsection to the Com-
mittee on Banking, Housing, and Urban Affairs of
the Senate and the Committee on Transportation and
Infrastructure of the House of Representatives.
‘‘(e) STUDY OF METHODS TO IMPROVE ACCESSIBILITY
OF PUBLIC TRANSPORTATION FOR PERSONS WITH VISUAL
DISABILITIES.—Not later than October 1, 2006, the Sec-
retary shall transmit to the Committee on Transportation
and Infrastructure of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the
Senate a report on the effectiveness of alternative methods
to improve the accessibility of public transportation for per-
sons with visual disabilities. The report shall evaluate a va-
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riety of methods and techniques for improving accessibility,
including installation of Remote Infrared Audible Signs for
provision of wayfinding and information for people who
have visual, cognitive, or learning disabilities.’’.
(c) CONFORMING AMENDMENTS.—
(1) SECTION HEADING.—The heading for section
5314 is amended to read as follows:
‘‘§ 5314. National research programs’’.
(2) TABLE OF SECTIONS.—The item relating to
section 5314 in the table of sections for chapter 53 is
amended to read as follows:
‘‘5314. National research programs.’’.
SEC. 6017. NATIONAL TRANSIT INSTITUTE.
(a) Section 5315 is amended—
(1) by striking subsections (a) and (b) and in-
serting the following:
‘‘(a) ESTABLISHMENT.—The Secretary shall award
grants to Rutgers University to conduct a national transit
institute.
‘‘(b) DUTIES.—
‘‘(1) IN GENERAL.—In cooperation with the Fed-
eral Transit Administration, State transportation de-
partments, public transportation authorities, and na-
tional and international entities, the institute estab-
lished pursuant to subsection (a) shall develop and
conduct training programs for Federal, State, and
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local transportation employees, United States citizens,
and foreign nationals engaged or to be engaged in
Government-aid public transportation work.
‘‘(2) TRAINING PROGRAMS.—The training pro-
grams developed under paragraph (1) may include
courses in recent developments, techniques, and proce-
dures related to—
‘‘(A) intermodal and public transportation
planning;
‘‘(B) management;
‘‘(C) environmental factors;
‘‘(D) acquisition and joint use rights of
way;
‘‘(E) engineering and architectural design;
‘‘(F) procurement strategies for public
transportation systems;
‘‘(G) turnkey approaches to delivering pub-
lic transportation systems;
‘‘(H) new technologies;
‘‘(I) emission reduction technologies;
‘‘(J) ways to make public transportation
accessible to individuals with disabilities;
‘‘(K) construction, construction manage-
ment, insurance, and risk management;
‘‘(L) maintenance;