254 
tent to which nondiscrimination and equal opportunity 
exist in the construction and operation of federally funded 
transportation projects, programs, and activities. 
(b) SUPPORTING INFORMATION.—In conducting the 
assessment under subsection (a), the Secretary shall— 
(1) review all demographic data, discrimination 
complaints, reports, and other relevant information 
collected or prepared by a recipient of Federal finan-
cial assistance or the Department pursuant to an ap-
plicable civil rights statute, regulation, or other obli-
gation; and 
(2) coordinate with the Secretary of Labor, as 
necessary, to obtain information regarding equitable 
employment and contracting opportunities. 
(c) REPORT.—Not later than 4 years after the date of 
enactment of this Act, and every 4 years thereafter, the Sec-
retary shall submit to Congress and publish on the Web site 
of the Department a report on the results of the assessment 
under subsection (a). The report shall include the following: 
(1) A specification of the impediments to non-
discrimination and equal opportunity in federally 
funded transportation projects, programs, and activi-
ties. 
(2) Recommendations for overcoming the impedi-
ments specified under paragraph (1). 
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(3) Information upon which the assessment is 
based. 
(d) COLLECTION AND REPORTING PROCEDURES.— 
(1) PUBLIC AVAILABILITY.—The Secretary shall 
ensure, to the extent appropriate, that all information 
reviewed or collected for the assessment under sub-
section (a) is made available to the public through the 
prompt and ongoing publication of the information, 
including a summary of the information, on the Web 
site of the Department. 
(2) REGULATIONS.—The Secretary shall issue 
regulations for the collection and reporting of infor-
mation necessary to carry out this section. 
(e) COORDINATION.—In carrying out this section, the 
Secretary shall coordinate with the Director of the Bureau 
of Transportation Statistics, the Director of the Depart-
mental Office of Civil Rights, the Secretary of Labor, and 
the heads of such other agencies as may contribute to the 
assessment under subsection (a). 
TITLE II—PUBLIC 
TRANSPORTATION 
SEC. 2001. SHORT TITLE; AMENDMENTS TO TITLE 49, 
UNITED STATES CODE. 
(a) SHORT TITLE.—This title may be cited as the 
‘‘Public Transportation Act of 2012’’. 
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(b) AMENDMENTS
TO TITLE 49, UNITED STATES 
CODE.—Except as otherwise expressly provided, whenever 
in this title an amendment or repeal is expressed in terms 
of an amendment to, or a repeal of, a section or other provi-
sion, the reference shall be considered to be made to a section 
or other provision of title 49, United States Code. 
SEC. 2002. DEFINITIONS. 
Section 5302(a) is amended— 
(1) in paragraph (1)(I) by striking ‘‘10 percent’’ 
and inserting ‘‘15 percent’’; 
(2) by redesignating paragraphs (12) through 
(17) as paragraphs (13) through (18), respectively; 
and 
(3) by inserting after paragraph (11) the fol-
lowing: 
‘‘(12) RURAL
AREA.—The term ‘rural area’ 
means an area encompassing a population of less 
than 50,000 people that has not been designated in 
the most recent decennial census as an ‘urbanized 
area’ by the Secretary of Commerce.’’. 
SEC. 2003. PLANNING PROGRAMS. 
Section 5305 is amended— 
(1) in the heading for subsection (d) by inserting 
‘‘TRANSPORTATION’’ before ‘‘PLANNING’’; 
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(2) in paragraph (d)(2), by striking ‘‘designated 
under this section’’ and inserting ‘‘responsible for car-
rying out the provisions of section 5203 of this title’’; 
(3) in subsection (e)— 
(A) in the subsection heading by striking 
‘‘STATE’’ and inserting ‘‘STATEWIDE TRANSPOR-
TATION’’; and 
(B) in paragraph (1)(A) by striking 
‘‘5315,’’; and 
(4) in subsection (g) by striking ‘‘section 
5338(c)’’ and inserting ‘‘section 5338(a)(2)’’. 
SEC. 2004. PRIVATE ENTERPRISE PARTICIPATION. 
Section 5306(a) is amended by striking ‘‘, as deter-
mined by local policies, criteria, and decisionmaking,’’. 
SEC. 2005. URBANIZED AREA FORMULA GRANTS. 
(a) GRANTS.—Section 5307(b)(1) is amended— 
(1) by striking ‘‘and’’ at the end of subpara-
graph (E); 
(2) by redesignating subparagraph (F) as sub-
paragraph (G); and 
(3) by inserting after subparagraph (E) the fol-
lowing: 
‘‘(F) operating costs of equipment and fa-
cilities for use in public transportation in an ur-
banized area with a population of at least 
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200,000 if the State or regional authority pro-
viding public transportation for the urbanized 
area is operating— 
‘‘(i) 75 buses or fewer in fixed-route 
service during peak service hours, not to ex-
ceed 50 percent of the net project cost of the 
project for operating expenses; and 
‘‘(ii) more than 75 but fewer than 100 
buses in fixed-route service during peak 
service hours, not to exceed 25 percent of the 
net project cost of the project for operating 
expenses; and’’. 
(b) GENERAL
AUTHORITY.—Section 5307(b)(3) is 
amended— 
(1) by inserting ‘‘TRANSPORTATION
MANAGE-
MENT AREAS.—’’ before ‘‘In a’’; and 
(2) by moving the text 2 ems to the right. 
(c) 
GRANT
RECIPIENT
REQUIREMENTS.—Section 
5307(d)(1) is amended— 
(1) in subparagraph (D)— 
(A) by striking ‘‘elderly and handicapped 
individuals, or an’’ and inserting ‘‘elderly indi-
viduals, individuals with disabilities, and any’’; 
and 
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(B) by striking the comma before ‘‘will be 
charged’’; 
(2) in subparagraph (H) by striking ‘‘section 
5301(a), section 5301(d),’’ and inserting ‘‘section 
5301’’; 
(3) in subparagraph (I) by adding ‘‘and’’ at the 
end; 
(4) in subparagraph (J)(ii) by striking ‘‘; and’’ 
and inserting a period; and 
(5) by striking subparagraph (K). 
SEC. 2006. CAPITAL INVESTMENT GRANTS. 
(a) IN GENERAL.—Section 5309 is amended to read 
as follows: 
‘‘§ 5309. Capital investment grants 
‘‘(a) DEFINITIONS.—In this section, the following defi-
nitions apply: 
‘‘(1) NEW FIXED GUIDEWAY CAPITAL PROJECT.— 
The term ‘new fixed guideway capital project’ means 
an operable segment of a capital project for a new 
fixed guideway system or extension to an existing 
fixed guideway system. 
‘‘(2) NEW START PROJECT.—The term ‘new start 
project’ means a new fixed guideway capital project 
for which the Federal assistance provided or to be 
provided under this section is $75,000,000 or more. 
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‘‘(3) SMALL START PROJECT.—The term ‘small 
start project’ means a new fixed guideway capital 
project for which— 
‘‘(A) the Federal assistance provided or to 
be provided under this section is less than 
$75,000,000; and 
‘‘(B) the total estimated net capital cost is 
less than $250,000,000. 
‘‘(b) GENERAL AUTHORITY.—The Secretary may make 
grants under this section to assist State and local govern-
mental authorities in financing— 
‘‘(1) new fixed guideway capital projects under 
subsections (d) and (e), including the acquisition of 
real property, the initial acquisition of rolling stock 
for the systems, the acquisition of rights-of-way, and 
relocation assistance, for fixed guideway corridor de-
velopment for projects in the advanced stages of plan-
ning or in project development; and 
‘‘(2) the development of corridors to support new 
fixed guideway capital projects under subsections (d) 
and (e), including protecting rights-of-way through 
acquisition, construction of dedicated bus and high 
occupancy vehicle lanes, park and ride lots, and other 
nonvehicular capital improvements that the Secretary 
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may determine would result in increased public 
transportation usage in the corridor. 
‘‘(c) GRANT REQUIREMENTS.— 
‘‘(1) IN GENERAL.—The Secretary may not ap-
prove a grant under this section unless the Secretary 
determines that— 
‘‘(A) the project is part of an approved 
long-range transportation plan and program of 
projects required under sections 5203, 5204, and 
5306; and 
‘‘(B) the applicant has, or will have— 
‘‘(i) the legal, financial, and technical 
capacity to carry out the project, including 
safety and security aspects of the project; 
‘‘(ii) satisfactory continuing control 
over the use of the equipment or facilities; 
and 
‘‘(iii) the capability and willingness to 
maintain the equipment or facilities. 
‘‘(2) CERTIFICATION.—An applicant that has 
submitted the certifications required under subpara-
graphs (A), (B), (C), and (H) of section 5307(d)(1) 
shall be deemed to have provided sufficient informa-
tion upon which the Secretary may make the deter-
minations required under this subsection. 
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‘‘(3) GRANTEE REQUIREMENTS.—The Secretary 
shall require that any grant awarded under this sec-
tion to a recipient be subject to all terms, conditions, 
requirements, and provisions that the Secretary deter-
mines to be necessary or appropriate for the purposes 
of this section, including requirements for the disposi-
tion of net increases in the value of real property re-
sulting from the project assisted under this section. 
‘‘(d) NEW START PROJECTS.— 
‘‘(1) FULL FUNDING GRANT AGREEMENT.— 
‘‘(A) IN
GENERAL.—A new start project 
shall be carried out through a full funding grant 
agreement. 
‘‘(B) CRITERIA.—The Secretary shall enter 
into a full funding grant agreement, based on the 
evaluations and ratings required under this sub-
section, with each grantee receiving assistance 
for a new start project that— 
‘‘(i) is authorized for project develop-
ment; and 
‘‘(ii) has been rated as high, medium- 
high, or medium, in accordance with para-
graph (5). 
‘‘(2) APPROVAL OF GRANTS.—The Secretary may 
approve a grant under this section for a new start 
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project only if the Secretary, based upon evaluations 
and considerations set forth in paragraph (3), deter-
mines that the project— 
‘‘(A) has been adopted as the locally pre-
ferred alternative as part of the long-range 
transportation plan required under section 5203; 
‘‘(B) is based on the results of an evaluation 
of the benefits of the project as set forth in para-
graph (3); and 
‘‘(C) is supported by an acceptable degree of 
local financial commitment (including evidence 
of stable and dependable financing sources) to 
construct, maintain, and operate the system or 
extension, and maintain and operate the entire 
public transportation system without requiring a 
reduction in existing public transportation serv-
ices or level of service to operate the project. 
‘‘(3) EVALUATION OF BENEFITS AND FEDERAL 
INVESTMENT.—In making a determination for a new 
start project under paragraph (2)(B), the Secretary 
shall analyze, evaluate, and consider the following 
evaluation criteria for the project (as compared to a 
no-action alternative): 
‘‘(A) The cost effectiveness of the project. 
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‘‘(B) The mobility and accessibility benefits 
of the project, including direct intermodal 
connectivity with other modes of transportation. 
‘‘(C) The degree of congestion relief antici-
pated as a result of the project. 
‘‘(D) The reductions in energy consumption 
and air pollution associated with the project. 
‘‘(E) The economic development effects asso-
ciated with the project. 
‘‘(F) The private contributions to the 
project, including cost-effective project delivery, 
management or transfer of project risks, expe-
dited project schedule, financial partnering, and 
other public-private strategies. 
‘‘(4) EVALUATION OF LOCAL FINANCIAL COMMIT-
MENT.—In making a determination for a new start 
project under paragraph (2)(C), the Secretary shall— 
‘‘(A) require that the proposed project plan 
provide for the availability of contingency 
amounts that the Secretary determines to be rea-
sonable to cover unanticipated cost increases; 
‘‘(B) require that each proposed local source 
of capital and operating financing is stable, reli-
able, and available within the project timetable; 
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‘‘(C) consider private contributions to the 
project, including cost-effective project delivery, 
management or transfer of project risks, expe-
dited project schedule, financial partnering, and 
other public-private partnership strategies; 
‘‘(D) consider the extent to which the project 
has a local financial commitment that exceeds 
the required non-Federal share of the cost of the 
project; and 
‘‘(E) consider the elements of the overall 
proposed public transportation system advanced 
with 100 percent non-Federal funds. 
‘‘(5) RATINGS.—In carrying out paragraphs (3) 
and (4) for a new start project, the Secretary shall 
evaluate and rate the project on a 5-point scale (high, 
medium-high, medium, medium-low, or low) based on 
an evaluation of the benefits of the project as com-
pared to the Federal assistance to be provided and the 
degree of local financial commitment, as required 
under this subsection. In rating the projects, the Sec-
retary shall provide, in addition to the overall project 
rating, individual ratings for each of the criteria es-
tablished by this subsection and shall give com-
parable, but not necessarily equal, numerical weight 
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to the benefits that the project will bring to the com-
munity in calculating the overall project rating. 
‘‘(e) SMALL START PROJECTS.— 
‘‘(1) IN GENERAL.— 
‘‘(A) APPLICABILITY OF REQUIREMENTS.— 
Except as provided by subparagraph (B), a 
small start project shall be subject to the require-
ments of this subsection. 
‘‘(B) PROJECTS
RECEIVING
LESS
THAN 
$25,000,000 IN FEDERAL ASSISTANCE.—If the as-
sistance provided under this section for a small 
start project is less than $25,000,000— 
‘‘(i) the requirements of this subsection 
shall not apply to the project if determined 
appropriate by the Secretary; and 
‘‘(ii) the Secretary shall utilize special 
warrants described in subsection (n) to ad-
vance the project and provide Federal as-
sistance as appropriate. 
‘‘(2) SELECTION CRITERIA.—The Secretary may 
provide Federal assistance for a small start project 
under this subsection only if the Secretary determines 
that the project— 
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‘‘(A) has been adopted as the locally pre-
ferred alternative as part of the long-range 
transportation plan required under section 5203; 
‘‘(B) is based on the results of an analysis 
of the benefits of the project as set forth in para-
graph (3); and 
‘‘(C) is supported by an acceptable degree of 
local financial commitment. 
‘‘(3) EVALUATION OF BENEFITS AND FEDERAL 
INVESTMENT.—In making a determination for a 
small start project under paragraph (2)(B), the Sec-
retary shall analyze, evaluate, and consider the fol-
lowing evaluation criteria for the project (as com-
pared to a no-action alternative): 
‘‘(A) The cost effectiveness of the project. 
‘‘(B) The mobility and accessibility benefits 
of the project, including direct intermodal 
connectivity with other modes of transportation. 
‘‘(C) The degree of congestion relief antici-
pated as a result of the project. 
‘‘(D) The economic development effects asso-
ciated with the project. 
‘‘(4) EVALUATION OF LOCAL FINANCIAL COMMIT-
MENT.—For purposes of paragraph (2)(C), the Sec-
retary shall require that each proposed local source of 
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capital and operating financing is stable, reliable, 
and available within the proposed project timetable. 
‘‘(5) RATINGS.—In carrying out paragraphs (3) 
and (4) for a small start project, the Secretary shall 
evaluate and rate the project on a 5-point scale (high, 
medium-high, medium, medium-low, or low) based on 
an evaluation of the benefits of the project as com-
pared to the Federal assistance to be provided and the 
degree of local financial commitment, as required 
under this subsection. In rating the projects, the Sec-
retary shall provide, in addition to the overall project 
rating, individual ratings for each of the criteria es-
tablished by this subsection and shall give com-
parable, but not necessarily equal, numerical weight 
to the benefits that the project will bring to the com-
munity in calculating the overall project rating. 
‘‘(6) GRANTS
AND
EXPEDITED
GRANT
AGREE-
MENTS.— 
‘‘(A) IN GENERAL.—The Secretary, to the 
maximum extent practicable, shall provide Fed-
eral assistance under this subsection in a single 
grant. If the Secretary cannot provide such a 
single grant, the Secretary may execute an expe-
dited grant agreement in order to include a com-
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mitment on the part of the Secretary to provide 
funding for the project in future fiscal years. 
‘‘(B) TERMS OF EXPEDITED GRANT AGREE-
MENTS.—In executing an expedited grant agree-
ment under this subsection, the Secretary may 
include in the agreement terms similar to those 
established under subsection (g)(2)(A). 
‘‘(C) NOTICE
OF
PROPOSED
GRANTS
AND 
EXPEDITED GRANT AGREEMENTS.—At least 10 
days before making a grant award or entering 
into a grant agreement for a project under this 
subsection, the Secretary shall notify, in writing, 
the Committee on Transportation and Infra-
structure and the Committee on Appropriations 
of the House of Representatives and the Com-
mittee on Banking, Housing, and Urban Affairs 
and the Committee on Appropriations of the 
Senate of the proposed grant or expedited grant 
agreement, as well as the evaluations and ratings 
for the project. 
‘‘(7) INCLUSION
OF
CORRIDOR-BASED
CAPITAL 
PROJECTS.—In this subsection, the term ‘small start 
project’ includes a corridor-based capital project if— 
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‘‘(A) a majority of the project operates in a 
separate right-of-way dedicated for transit use 
during peak hour operations; or 
‘‘(B) the project represents a substantial in-
vestment in a defined corridor as demonstrated 
by investment in fixed transit facilities and 
equipment such as substantial transit stations, 
intelligent transportation systems technology, 
traffic signal priority, off-board fare collection, 
and other direct investments in the corridor. 
‘‘(f) PREVIOUSLY ISSUED LETTER
OF INTENT
OR 
GRANT AGREEMENT.—Subsections (d) and (e) do not apply 
to projects for which the Secretary has issued a letter of 
intent, entered into an early systems work agreement or a 
full funding grant agreement, or has been approved to enter 
final design before the date of enactment of the Public 
Transportation Act of 2012. 
‘‘(g) LETTERS
OF INTENT, FULL FUNDING GRANT 
AGREEMENTS, 
AND
EARLY
SYSTEMS
WORK
AGREE-
MENTS.— 
‘‘(1) LETTERS OF INTENT.— 
‘‘(A) AMOUNTS
INTENDED
TO
BE
OBLI-
GATED.—The Secretary may issue a letter of in-
tent to an applicant announcing an intention to 
obligate, for a new start project, an amount from 
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future available budget authority specified in 
law that is not more than the amount stipulated 
as the financial participation of the Secretary in 
the project. 
‘‘(B) TREATMENT.—The issuance of a letter 
under subparagraph (A) is deemed not to be an 
obligation under section 1108(c), 1108(d), 1501, 
or 1502(a) of title 31 or an administrative com-
mitment. 
‘‘(2) FULL FUNDING GRANT AGREEMENTS.— 
‘‘(A) TERMS.—The Secretary may enter 
into a full funding grant agreement with an ap-
plicant for a grant under this section for a new 
start project. The agreement shall— 
‘‘(i) establish the terms of participa-
tion by the Government in the project; 
‘‘(ii) establish the maximum amount of 
Government financial assistance for the 
project; 
‘‘(iii) cover the period of time for com-
pleting the project, including, if necessary, 
a period extending beyond the period of an 
authorization; 
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‘‘(iv) make timely and efficient man-
agement of the project easier according to 
the laws of the United States; and 
‘‘(v) establish terms requiring the ap-
plicant to repay all Government payments 
made under the agreement (plus such rea-
sonable interest and penalty charges as are 
established by the Secretary in the agree-
ment) if the applicant does not carry out 
the project for reasons within the control of 
the applicant. 
‘‘(B) SPECIAL FINANCIAL RULES.— 
‘‘(i) IN
GENERAL.—A full funding 
grant agreement under this paragraph obli-
gates an amount of available budget author-
ity specified in law and may include a 
commitment (contingent on amounts to be 
specified in law in advance for commit-
ments under this paragraph) to obligate an 
additional amount from future available 
budget authority specified in law. 
‘‘(ii) STATEMENT OF CONTINGENT COM-
MITMENT.—The full funding grant agree-
ment shall state that the contingent commit-
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ment is not an obligation of the Govern-
ment. 
‘‘(iii) INTEREST AND OTHER FINANC-
ING COSTS.—Interest and other financing 
costs of efficiently carrying out a part of the 
project within a reasonable time are a cost 
of carrying out the project under a full 
funding grant agreement, except that eligi-
ble costs may not be more than the cost of 
the most favorable financing terms reason-
ably available for the project at the time of 
borrowing. The applicant shall certify, in a 
way satisfactory to the Secretary, that the 
applicant has shown reasonable diligence in 
seeking the most favorable financing terms. 
‘‘(iv) COMPLETION OF OPERABLE SEG-
MENT.—The amount stipulated in a full 
funding grant agreement for a new start 
project shall be sufficient to complete at 
least one operable segment. 
‘‘(C) BEFORE AND AFTER STUDY.— 
‘‘(i) IN
GENERAL.—A full funding 
grant agreement under this paragraph shall 
require the applicant to conduct a study 
that— 
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‘‘(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 character-
istics and performance; and 
‘‘(III) identifies sources of dif-
ferences between predicted and actual 
outcomes. 
‘‘(ii) INFORMATION
COLLECTION
AND 
ANALYSIS PLAN.— 
‘‘(I) SUBMISSION
OF
PLAN.—An 
applicant seeking a full funding grant 
agreement under this paragraph shall 
submit to the Secretary a complete 
plan for the collection and analysis of 
information to identify the impacts of 
the new start project and the accuracy 
of the forecasts prepared during the de-
velopment of the project. Preparation 
of the plan shall be included in the 
agreement as an eligible activity. 
‘‘(II) CONTENTS
OF
PLAN.—The 
plan submitted under subclause (I) 
shall provide for— 
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‘‘(aa) the collection of data 
on the current transit system of 
the applicant regarding transit 
service levels and ridership pat-
terns, including origins and des-
tinations, access modes, trip pur-
poses, and rider characteristics; 
‘‘(bb) documentation of the 
predicted scope, service levels, cap-
ital costs, operating costs, and 
ridership of the project; 
‘‘(cc) collection of data on the 
transit system of the applicant 2 
years after the opening of the new 
start project, including analogous 
information on transit service lev-
els and ridership patterns and in-
formation on the as-built scope 
and capital costs of the project; 
and 
‘‘(dd) an analysis of the con-
sistency of predicted project char-
acteristics with the data collected 
under item (cc). 
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‘‘(D) COLLECTION
OF
DATA
ON
CURRENT 
SYSTEM.—To be eligible to enter into a full fund-
ing grant agreement under this paragraph for a 
new start project, an applicant shall have col-
lected data on the current transit system of the 
applicant, according to the plan required under 
subparagraph (C)(ii), before the beginning of 
construction of the project. Collection of the data 
shall be included in the full funding grant agree-
ment as an eligible activity. 
‘‘(3) EARLY SYSTEMS WORK AGREEMENTS.— 
‘‘(A) CONDITIONS.—The Secretary may 
enter into an early systems work agreement with 
an applicant for a new start project if a record 
of decision under the National Environmental 
Policy Act of 1969 (42 U.S.C. 4321 et seq.) has 
been issued on the project and the Secretary 
finds there is reason to believe a full funding 
grant agreement for the project will be made. 
‘‘(B) CONTENTS.— 
‘‘(i) IN GENERAL.—A work agreement 
under this paragraph for a new start 
project obligates an amount of available 
budget authority specified in law and shall 
provide for reimbursement of preliminary 
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costs of carrying out the project, including 
land acquisition, timely procurement of sys-
tem elements for which specifications are 
decided, and other activities the Secretary 
decides are appropriate to make efficient, 
long-term project management easier. 
‘‘(ii) 
PERIOD
COVERED.—A 
work 
agreement under this paragraph shall cover 
the period of time the Secretary considers 
appropriate. The period may extend beyond 
the period of current authorization. 
‘‘(iii) INTEREST AND OTHER FINANC-
ING COSTS.—Interest and other financing 
costs of efficiently carrying out the work 
agreement within a reasonable time are a 
cost of carrying out the agreement, except 
that eligible costs may not be more than the 
cost of the most favorable financing terms 
reasonably available for the project at the 
time of borrowing. The applicant shall cer-
tify, in a manner satisfactory to the Sec-
retary, that the applicant has shown rea-
sonable diligence in seeking the most favor-
able financing terms. 
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‘‘(iv) 
FAILURE
TO
CARRY
OUT 
PROJECT.—If, after entering into a work 
agreement under this paragraph for a new 
start project, an applicant does not carry 
out the project for reasons within the con-
trol of the applicant, the applicant shall 
repay all Government payments made 
under the work agreement plus reasonable 
interest and penalty charges the Secretary 
establishes in the agreement. 
‘‘(4) LIMITATION ON AMOUNTS.— 
‘‘(A) NEW START GRANTS CONTINGENT COM-
MITMENT
AUTHORITY.—The 
total 
estimated 
amount of future obligations of the Government 
and contingent commitments to incur obligations 
covered by all outstanding letters of intent, full 
funding grant agreements, and early systems 
work agreements under this subsection for new 
start projects may be not more than the greater 
of the amount authorized under section 5338(b) 
for such projects or an amount equivalent to the 
last 3 fiscal years of funding allocated under 
subsections (m)(2)(B) for such projects, less an 
amount the Secretary reasonably estimates is 
necessary for grants under this section for the 
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projects that are not covered by a letter or agree-
ment. The total amount covered by new letters 
and contingent commitments included in full 
funding grant agreements and early systems 
work agreements for such projects may be not 
more than a limitation specified in law. 
‘‘(B) APPROPRIATION REQUIRED.—An obli-
gation may be made under this subsection only 
when amounts are appropriated for the obliga-
tion. 
‘‘(5) NOTIFICATION OF CONGRESS.—At least 10 
days before issuing a letter of intent or an early sys-
tems work agreement under this section, and at least 
21 days before entering into a full funding grant 
agreement under this section, the Secretary shall no-
tify, in writing, the Committee on Transportation 
and Infrastructure and the Committee on Appropria-
tions of the House of Representatives and the Com-
mittee on Banking, Housing, and Urban Affairs and 
the Committee on Appropriations of the Senate of the 
proposed letter or agreement. The Secretary shall in-
clude with the notification a copy of the proposed let-
ter or agreement as well as the evaluations and rat-
ings for the project. 
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‘‘(h) GOVERNMENT’S
SHARE
OF
NET
PROJECT 
COST.— 
‘‘(1) IN GENERAL.—Based on engineering stud-
ies, studies of economic feasibility, and information 
on the expected use of equipment or facilities, the Sec-
retary shall estimate the net capital project cost of a 
new fixed guideway capital project. A grant under 
this section for the project shall be for 80 percent of 
the net capital project cost unless the grant recipient 
requests a lower grant percentage. 
‘‘(2) ADJUSTMENT
FOR
COMPLETION
UNDER 
BUDGET.—The Secretary may adjust the final net 
project cost of a new fixed guideway capital project 
evaluated under subsections (d) and (e) to include the 
cost of eligible activities not included in the originally 
defined project if the Secretary determines that the 
originally defined project has been completed at a cost 
that is significantly below the original estimate. 
‘‘(3) REMAINDER OF NET PROJECT COST.—The 
remainder of net project costs shall be provided from 
an undistributed cash surplus, a replacement or de-
preciation cash fund or reserve, or new capital from 
public or private sources. 
‘‘(4) LIMITATION
ON
STATUTORY
CONSTRUC-
TION.—Nothing in this section shall be construed as 
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authorizing the Secretary to request or require a non- 
Federal financial commitment for a project that is 
more than 20 percent of the net capital project cost. 
‘‘(5) SPECIAL
RULE
FOR
ROLLING
STOCK 
COSTS.—In addition to amounts allowed pursuant to 
paragraph (1), a planned extension to a fixed guide-
way system may include the cost of rolling stock pre-
viously purchased if the applicant satisfies the Sec-
retary that only amounts other than amounts of the 
Government were used and that the purchase was 
made for use on the extension. A refund or reduction 
of the remainder may be made only if a refund of a 
proportional amount of the grant of the Government 
is made at the same time. 
‘‘(i) UNDERTAKING PROJECTS IN ADVANCE.— 
‘‘(1) IN GENERAL.—The Secretary may pay the 
Government’s share of the net capital project cost to 
a State or local governmental authority that carries 
out any part of a project described in this section 
without the aid of amounts of the Government and 
according to all applicable procedures and require-
ments if— 
‘‘(A) the State or local governmental au-
thority applies for the payment; 
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‘‘(B) the Secretary approves the payment; 
and 
‘‘(C) before carrying out the part of the 
project, the Secretary approves the plans and 
specifications for the part in the same manner as 
other projects under this section. 
‘‘(2) FINANCING COSTS.— 
‘‘(A) IN
GENERAL.—The cost of carrying 
out part of a project includes the amount of in-
terest earned and payable on bonds issued by the 
State or local governmental authority to the ex-
tent proceeds of the bonds are expended in car-
rying out the part. 
‘‘(B) LIMITATION
ON
AMOUNT
OF
INTER-
EST.—The amount of interest under this para-
graph may not be more than the most favorable 
interest terms reasonably available for the project 
at the time of borrowing. 
‘‘(C) CERTIFICATION.—The applicant shall 
certify, in a manner satisfactory to the Sec-
retary, that the applicant has shown reasonable 
diligence in seeking the most favorable financial 
terms. 
‘‘(j) AVAILABILITY OF AMOUNTS.—An amount made 
available or appropriated under section 5338(b) for new 
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fixed guideway capital projects shall remain available for 
a period of 3 fiscal years after the fiscal year in which the 
amount is made available or appropriated. Any of such 
amount that is unobligated at the end of such period shall 
be rescinded and deposited in the general fund of the Treas-
ury, where such amounts shall be dedicated for the sole pur-
pose of deficit reduction and prohibited from use as an offset 
for other spending increases or revenue reductions. 
‘‘(k) REPORTS ON NEW START PROJECTS.— 
‘‘(1) 
ANNUAL
REPORT
ON
FUNDING
REC-
OMMENDATIONS.—Not later than the first Monday in 
February of each year, the Secretary shall submit to 
the Committee on Transportation and Infrastructure 
and the Committee on Appropriations of the House of 
Representatives and the Committee on Banking, 
Housing, and Urban Affairs and the Committee on 
Appropriations of the Senate a report that includes— 
‘‘(A) a proposal of allocations of amounts to 
be available to finance grants for new fixed 
guideway capital projects among applicants for 
these amounts; 
‘‘(B) evaluations and ratings, as required 
under subsections (d) and (e), for each such 
project that is authorized by the Public Trans-
portation Act of 2012; and 
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‘‘(C) recommendations of such projects for 
funding based on the evaluations and ratings 
and on existing commitments and anticipated 
funding levels for the next 3 fiscal years based on 
information currently available to the Secretary. 
‘‘(2) BIENNIAL GAO REVIEW.—Beginning 2 years 
after the date of enactment of the Public Transpor-
tation Act of 2012, the Comptroller General of the 
United States shall— 
‘‘(A) conduct a biennial review of— 
‘‘(i) the processes and procedures for 
evaluating, rating, and recommending new 
fixed guideway capital projects; and 
‘‘(ii) the Secretary’s implementation of 
such processes and procedures; and 
‘‘(B) on a biennial basis, report to Congress 
on the results of such review by May 31. 
‘‘(l) BEFORE AND AFTER STUDY REPORT.—Not later 
than the first Monday of August of each year, the Secretary 
shall submit to the committees referred to in subsection 
(k)(1) a report containing a summary of the results of the 
studies conducted under subsection (g)(2)(C). 
‘‘(m) LIMITATIONS.— 
‘‘(1) LIMITATION
ON
GRANTS.—The Secretary 
may make a grant or enter into a grant agreement 
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for a new fixed guideway capital project under this 
section only if the project has been rated as high, me-
dium-high, or medium or the Secretary has issued a 
special warrant described in subsection (n) in lieu of 
such ratings. 
‘‘(2) FISCAL YEARS 2013 THROUGH 2016.—Of the 
amounts made available or appropriated for fiscal 
years 2013 through 2016 under section 5338(b)— 
‘‘(A) $150,000,000 for each fiscal year shall 
be allocated for small start projects in accord-
ance with subsection (e); and 
‘‘(B) the remainder shall be allocated for 
new start projects in accordance with subsection 
(d). 
‘‘(3) LIMITATION ON EXPENDITURES.—None of 
the amounts made available or appropriated under 
section 5338(b) may be expended on a project that has 
not been adopted as the locally preferred alternative 
as part of a long-range transportation plan. 
‘‘(n) EXPEDITED PROJECT ADVANCEMENT.— 
‘‘(1) WARRANTS.—The Secretary, to the max-
imum extent practicable, shall develop and utilize 
special warrants to advance projects and provide Fed-
eral assistance under this section. Special warrants 
may be utilized to advance new fixed guideway 
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projects under this section without requiring evalua-
tions and ratings described under subsections (d)(5) 
and (e)(5). Such warrants shall be— 
‘‘(A) based on current transit ridership, cor-
ridor characteristics, and service on existing 
alignments; 
‘‘(B) designed to assess distinct categories of 
projects, such as proposed new service enhance-
ments on existing alignments, new line haul 
service, and new urban circulator service; and 
‘‘(C) based on the benefits for proposed 
projects as set forth in subsections (d)(3) and 
(e)(3) for the Federal assistance provided or to be 
provided under this subsection. 
‘‘(2) NEW PROJECT DEVELOPMENT.— 
‘‘(A) IN GENERAL.—A project sponsor who 
requests Federal funding under this section shall 
apply to the Secretary to begin new project de-
velopment after a proposed new fixed guideway 
capital project has been adopted as the locally 
preferred alternative as part of the metropolitan 
long-range transportation plan required under 
section 5303, and funding options for the non- 
Federal funding share have been identified. The 
application for new project development shall 
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specify whether the project sponsor is seeking 
Federal assistance under subsection (d) or (e). 
‘‘(B) APPLICATIONS.— 
‘‘(i) NOTICE TO CONGRESS.—Not later 
than 10 days after the date of receipt of an 
application for new project development 
under subparagraph (A), the Secretary shall 
provide written notice of the application to 
the Committee on Transportation and In-
frastructure of the House of Representatives 
and the Committee on Banking, Housing, 
and Urban Affairs of the Senate. 
‘‘(ii) APPROVAL OR DISAPPROVAL.—On 
the 11th day following the date on which the 
Secretary provides written notice of an ap-
plication for new project development under 
clause (i), the Secretary shall approve or 
disapprove the application. 
‘‘(C) PROJECT AUTHORIZATION.—Upon ap-
proval of an application to begin new project de-
velopment, the proposed new fixed guideway cap-
ital project shall be authorized and eligible for 
Federal funding under this section. 
‘‘(3) LETTERS OF INTENT AND EARLY SYSTEMS 
WORK
AGREEMENTS.—The Secretary, to the max-
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imum extent practicable, shall issue letters of intent 
and make early systems work agreements upon 
issuance of a record of decision under the National 
Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
seq.). 
‘‘(4) FUNDING
AGREEMENTS.—The Secretary 
shall enter into a full funding grant agreement, expe-
dited grant agreement, or grant, as appropriate, be-
tween the Government and the project sponsor as soon 
as the Secretary determines that the project meets the 
requirements of subsection (d) or (e). 
‘‘(5) RECORDS RETENTION.—The Secretary shall 
adhere to a uniform records retention policy regard-
ing all documentation related to new fixed guideway 
capital projects. 
‘‘(o) REGULATIONS.—Not later than 240 days after the 
date of enactment of the Public Transportation Act of 2012, 
the Secretary shall issue regulations establishing new pro-
gram requirements for the programs created under this sec-
tion, including new evaluation and rating processes for pro-
posed projects under this section.’’. 
(b) CLERICAL AMENDMENT.—The analysis for chapter 
53 is amended by striking the item relating to section 5309 
and inserting the following: 
‘‘5309. Capital investment grants.’’. 
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SEC. 2007. BUS AND BUS FACILITIES FORMULA GRANTS. 
(a) IN GENERAL.—Section 5310 is amended to read 
as follows: 
‘‘§ 5310. Bus and bus facilities formula grants 
‘‘(a) GENERAL AUTHORITY.—The Secretary may make 
grants under this section to assist States and local govern-
mental authorities in financing capital projects— 
‘‘(1) to replace, rehabilitate, and purchase buses 
and related equipment; and 
‘‘(2) to construct bus-related facilities. 
‘‘(b) GRANT REQUIREMENTS.—The requirements of 
subsections (c) and (d) of section 5307 apply to recipients 
of grants made under this section. 
‘‘(c) ELIGIBLE RECIPIENTS AND SUBRECIPIENTS.— 
‘‘(1) RECIPIENTS.—Eligible recipients under this 
section are providers of public transportation in ur-
banized areas that operate fixed route bus services 
and that do not operate heavy rail, commuter rail, or 
light rail services. 
‘‘(2) SUBRECIPIENTS.—A recipient that receives 
a grant under this section may allocate the amounts 
provided to subrecipients that are public agencies, 
private companies engaged in public transportation, 
or private nonprofit organizations. 
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‘‘(d) DISTRIBUTION OF GRANT FUNDS.—Grants under 
this section shall be distributed pursuant to the formula set 
forth in section 5336 other than subsection (b). 
‘‘(e) GOVERNMENT’S SHARE OF COSTS.— 
‘‘(1) CAPITAL PROJECTS.—A grant for a capital 
project, as defined in section 5302(a)(1), shall be for 
80 percent of the net project cost of the project. The 
recipient may provide additional local matching 
amounts. 
‘‘(2) REMAINING COSTS.—The remainder of the 
net project cost shall be provided— 
‘‘(A) in cash from non-Government sources 
other than revenues from providing public trans-
portation services; 
‘‘(B) from revenues derived from the sale of 
advertising and concessions; 
‘‘(C) from an undistributed cash surplus, a 
replacement or depreciation cash fund or reserve, 
or new capital; and 
‘‘(D) from amounts received under a service 
agreement with a State or local social service 
agency or private social service organization. 
‘‘(f) PERIOD OF AVAILABILITY TO RECIPIENTS.—A 
grant made available under this section may be obligated 
by the recipient for 3 years after the fiscal year in which 
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the amount is apportioned. Not later than 30 days after 
the end of the 3-year period, an amount that is not obli-
gated at the end of that period shall be added to the amount 
that may be apportioned under this section in the next fis-
cal year. 
‘‘(g) TRANSFERS OF APPORTIONMENTS.— 
‘‘(1) TRANSFER TO CERTAIN AREAS.—The chief 
executive officer of a State may transfer any part of 
the State’s funds made available under this section to 
urbanized areas of less than 200,000 in population or 
to rural areas in the State, after consulting with re-
sponsible local officials and publicly owned operators 
of public transportation in each area for which the 
amount originally was provided under this section. 
‘‘(2) TRANSFER TO STATE.—A designated recipi-
ent for an urbanized area with a population of at 
least 200,000 may transfer a part of its grant funds 
provided under this section to the chief executive offi-
cer of a State. The chief executive officer shall dis-
tribute the transferred amounts to urbanized areas of 
less than 200,000 in population or to rural areas in 
the State. 
‘‘(h) APPLICATION
OF OTHER SECTIONS.—Sections 
5302, 5318, 5323(a)(1), 5323(d), 5323(f), 5332, and 5333 
apply to this section and to a grant made with funds appor-
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tioned under this section. Except as provided in this section, 
no other provision of this chapter applies to this section 
or to a grant under this section.’’. 
(b) CLERICAL AMENDMENT.—The analysis for chapter 
53 is amended by striking the item relating to section 5310 
and inserting the following: 
‘‘5310. Bus and bus facilities formula grants.’’. 
SEC. 2008. RURAL AREA FORMULA GRANTS. 
(a) AMENDMENT
TO SECTION HEADING.—Section 
5311 is amended by striking the section designation and 
heading and inserting the following: 
‘‘§ 5311. Rural area formula grants’’. 
(b) PROGRAM GOALS.—Section 5311(b) is amended by 
adding at the end the following: 
‘‘(5) PROGRAM GOALS.—The goals of this section 
are— 
‘‘(A) to enhance the mobility and access of 
people in rural areas by assisting in the develop-
ment, construction, operation, improvement, 
maintenance, and use of public transportation 
systems and services in rural areas; 
‘‘(B) to increase the intermodalism of and 
connectivity among public transportation sys-
tems and services within rural areas and to 
urban areas by providing for maximum coordi-
nation of programs and services; 
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‘‘(C) to increase the state of good repair of 
rural public transportation assets; and 
‘‘(D) to enhance the mobility and access of 
people in rural areas by assisting in the develop-
ment and support of intercity bus transpor-
tation.’’. 
(c) 
PROJECTS
OF
NATIONAL
SCOPE.—Section 
5311(b)(3)(C) is amended by adding at the end the fol-
lowing: ‘‘In carrying out such projects, the Secretary shall 
enter into a competitively selected contract to provide on- 
site technical assistance to local and regional governments, 
public transit agencies, and public transportation-related 
nonprofit and for-profit organizations in rural areas for 
the purpose of developing training materials and providing 
necessary training assistance to local officials and agencies 
in rural areas.’’. 
(d) APPORTIONMENTS.—Section 5311(c)(2) is amend-
ed— 
(1) by striking ‘‘and’’ at the end of subpara-
graph (A); 
(2) by striking subparagraph (B) and inserting 
the following: 
‘‘(B) 70 percent shall be apportioned to the 
States in accordance with paragraph (4); and’’; 
and 
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(3) by adding at the end the following: 
‘‘(C) 10 percent shall be apportioned to the 
States in accordance with paragraph (5).’’. 
(e) APPORTIONMENTS BASED ON PUBLIC TRANSPOR-
TATION SERVICES PROVIDED IN RURAL AREAS.—Section 
5311(c) is amended by adding at the end the following: 
‘‘(5) 
APPORTIONMENTS
BASED
ON
PUBLIC 
TRANSPORTATION
SERVICES
PROVIDED
IN
RURAL 
AREAS.—The Secretary shall apportion to each State 
an amount equal to the amount apportioned under 
paragraph (2)(C) as follows: 
‘‘(A) 1⁄2 of such amount multiplied by the 
ratio that— 
‘‘(i) the number of public transpor-
tation revenue vehicle-miles operated in or 
attributable to rural areas in that State, as 
determined by the Secretary; bears to 
‘‘(ii) the total number of all public 
transportation revenue vehicle-miles oper-
ated in or attributable to rural areas in all 
States; and 
‘‘(B) 1⁄2 of such amount multiplied by the 
ratio that— 
‘‘(i) the number of public transpor-
tation unlinked passenger trips operated in 
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or attributable to rural areas in that State, 
as determined by the Secretary; bears to 
‘‘(ii) the total number of all public 
transportation unlinked passenger trips op-
erated in or attributable to rural areas in 
all States.’’. 
(f) USE FOR ADMINISTRATIVE, PLANNING, AND TECH-
NICAL ASSISTANCE.—Section 5311(e) is amended by strik-
ing ‘‘15 percent’’ and inserting ‘‘10 percent’’. 
(g) 
INTERCITY
BUS
TRANSPORTATION.—Section 
5311(f)(1) is amended— 
(1) in subparagraph (B) by striking ‘‘shelters’’ 
and inserting ‘‘facilities’’; and 
(2) in subparagraph (C) by striking ‘‘stops and 
depots’’ and inserting ‘‘facilities’’. 
(h) NON-FEDERAL SHARE.—Section 5311(g)(3) is 
amended— 
(1) in subparagraph (B) by striking ‘‘and’’ at 
the end; 
(2) in subparagraph (C) by striking the period 
at the end and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(D) may be derived from the costs of a pri-
vate operator’s intercity bus service as an in- 
kind match for the operating costs of connecting 
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rural intercity bus feeder service funded under 
subsection (f), except that this subparagraph 
shall apply only if the project includes both feed-
er service and a connecting unsubsidized inter-
city route segment and if the private operator 
agrees in writing to the use of its unsubsidized 
costs as an in-kind match.’’. 
(i) CLERICAL AMENDMENT.—The analysis for chapter 
53 is amended by striking the item relating to section 5311 
and inserting the following: 
‘‘5311. Rural area formula grants.’’. 
SEC. 2009. TRANSIT RESEARCH. 
(a) AMENDMENT
TO SECTION HEADING.—Section 
5312 is amended by striking the section designation and 
heading and inserting the following: 
‘‘§ 5312. Transit research’’. 
(b) RESEARCH PROJECTS.—Section 5312(a) is amend-
ed by adding at the end the following: 
‘‘(4) FUNDING.—The amounts made available 
under section 5338(c) are available to the Secretary 
for grants, contracts, cooperative agreements, or other 
agreements for the purposes of this section and sec-
tions 5305 and 5322, as the Secretary considers ap-
propriate.’’. 
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(c) 
JOINT
PARTNERSHIP
PROGRAM.—Section 
5312(b)(5) is amended by striking ‘‘Mass Transit Account’’ 
and inserting ‘‘Alternative Transportation Account’’. 
(d) TRANSIT COOPERATIVE RESEARCH PROGRAM.— 
Section 5312(c) is amended to read as follows: 
‘‘(c) TRANSIT COOPERATIVE RESEARCH PROGRAM.— 
‘‘(1) IN
GENERAL.—The Secretary shall carry 
out a public transportation cooperative research pro-
gram using amounts made available under section 
5338(c). 
‘‘(2) INDEPENDENT
GOVERNING
BOARD.—The 
Secretary shall establish an independent governing 
board for the program. The board shall recommend 
public transportation research, development, and tech-
nology transfer activities to be carried out under the 
program. 
‘‘(3) GRANTS AND COOPERATIVE AGREEMENTS.— 
The Secretary may make grants to, and enter into co-
operative agreements with, the National Academy of 
Sciences to carry out activities under this subsection 
that the Secretary determines appropriate.’’. 
(e) GOVERNMENT SHARE.—Section 5312 is amended 
by adding at the end the following: 
‘‘(d) GOVERNMENT SHARE.—If there would be a clear 
and direct financial benefit to an entity under a grant or 
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contract financed under this section, the Secretary shall es-
tablish a Government share consistent with that benefit.’’. 
(f) CLERICAL AMENDMENT.—The analysis for chapter 
53 is amended by striking the item relating to section 5312 
and inserting the following: 
‘‘5312. Transit research.’’. 
SEC. 2010. COORDINATED ACCESS AND MOBILITY PROGRAM 
FORMULA GRANTS. 
(a) IN GENERAL.—Section 5317 is amended to read 
as follows: 
‘‘§ 5317. Coordinated access and mobility program for-
mula grants 
‘‘(a) DEFINITIONS.—In this section, the following defi-
nitions apply: 
‘‘(1) ELDERLY INDIVIDUAL.—The term ‘elderly 
individual’ means an individual who is age 65 or 
older. 
‘‘(2) ELIGIBLE
LOW-INCOME
INDIVIDUAL.—The 
term ‘eligible low-income individual’ means an indi-
vidual whose family income is at or below 150 per-
cent of the poverty line (as that term is defined in 
section 673 of the Community Services Block Grant 
Act (42 U.S.C. 9902), including any revision required 
by that section) for a family of the size involved. 
‘‘(3) JOB
ACCESS
AND
REVERSE
COMMUTE 
PROJECT.—The term ‘job access and reverse commute 
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project’ means a transportation project to finance 
planning, capital, and operating costs that support 
the development and maintenance of transportation 
services designed to transport welfare recipients and 
eligible low-income individuals to and from jobs and 
activities related to their employment, including 
transportation projects that facilitate the provision of 
public transportation services from urbanized areas 
and rural areas to suburban employment locations. 
‘‘(4) RECIPIENT.—The term ‘recipient’ means a 
designated recipient (as defined in section 5307(a)) 
and a State that directly receives a grant under this 
section. 
‘‘(5) SUBRECIPIENT.—The term ‘subrecipient’ 
means a State or local governmental authority, non-
profit organization, or private operator of public 
transportation services that receives a grant under 
this section indirectly through a recipient. 
‘‘(6) WELFARE RECIPIENT.—The term ‘welfare 
recipient’ means an individual who has received as-
sistance under a State or tribal program funded 
under part A of title IV of the Social Security Act (42 
U.S.C. 601 et seq.) at any time during the 3-year pe-
riod before the date on which the applicant applies 
for a grant under this section. 
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‘‘(b) GOALS.—The goals of the program established 
under this section are to— 
‘‘(1) improve the accessibility of the Nation’s 
public transportation systems and services; 
‘‘(2) improve the mobility of or otherwise meet 
the special needs of elderly individuals, eligible low- 
income individuals, and individuals with disabilities; 
and 
‘‘(3) improve the coordination among all pro-
viders of public transportation and human services 
transportation. 
‘‘(c) GENERAL AUTHORITY.— 
‘‘(1) GRANTS.—The Secretary may make grants 
under this section to recipients for the following pur-
poses: 
‘‘(A) For public transportation projects 
planned, designed, and carried out to meet the 
special needs of elderly individuals and individ-
uals with disabilities. 
‘‘(B) For job access and reverse commute 
projects carried out by the recipient or a sub-
recipient. 
‘‘(C) For new public transportation services, 
and for public transportation alternatives be-
yond those required by the Americans with Dis-
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abilities Act of 1990 (42 U.S.C. 12101 et seq.), 
that assist individuals with disabilities with 
transportation, including transportation to and 
from jobs and employment support services. 
‘‘(2) ACQUIRING PUBLIC TRANSPORTATION SERV-
ICES.—A public transportation capital project under 
this section may include acquisition of public trans-
portation services as an eligible capital expense. 
‘‘(3) ADMINISTRATIVE
EXPENSES.—A recipient 
may use not more than 10 percent of the amounts ap-
portioned to the recipient under this section to ad-
minister, plan, and provide technical assistance for a 
project funded under this section. 
‘‘(d) APPORTIONMENTS.— 
‘‘(1) FORMULA.—The Secretary, using the most 
recent decennial census data, shall apportion amounts 
made available for a fiscal year to carry out this sec-
tion as follows: 
‘‘(A) 50 percent of the funds shall be appor-
tioned among designated recipients (as defined 
in section 5307(a)) for urbanized areas with a 
population of 200,000 or more in the ratio 
that— 
‘‘(i) the number of elderly individuals, 
individuals with disabilities, eligible low-in-
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come individuals, and welfare recipients in 
each such urbanized area; bears to 
‘‘(ii) the number of elderly individuals, 
individuals with disabilities, eligible low-in-
come individuals, and welfare recipients in 
all such urbanized areas. 
‘‘(B) 25 percent of the funds shall be appor-
tioned among the States in the ratio that— 
‘‘(i) the number of elderly individuals, 
individuals with disabilities, eligible low-in-
come individuals, and welfare recipients in 
urbanized areas with a population of less 
than 200,000 in each State; bears to 
‘‘(ii) the number of elderly individuals, 
individuals with disabilities, eligible low-in-
come individuals, and welfare recipients in 
urbanized areas with a population of less 
than 200,000 in all States. 
‘‘(C) 25 percent of the funds shall be appor-
tioned among the States in the ratio that— 
‘‘(i) the number of elderly individuals, 
individuals with disabilities, eligible low-in-
come individuals, and welfare recipients in 
rural areas with a population of less than 
50,000 in each State; bears to 
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‘‘(ii) the number of elderly individuals, 
individuals with disabilities, eligible low-in-
come individuals, and welfare recipients in 
rural areas with a population of less than 
50,000 in all States. 
‘‘(2) USE OF APPORTIONED FUNDS.—Except as 
provided in paragraph (3)— 
‘‘(A) funds apportioned under paragraph 
(1)(A) shall be used for projects serving urban-
ized areas with a population of 200,000 or more; 
‘‘(B) funds apportioned under paragraph 
(1)(B) shall be used for projects serving urban-
ized areas with a population of less than 
200,000; and 
‘‘(C) funds apportioned under paragraph 
(1)(C) shall be used for projects serving rural 
areas. 
‘‘(3) EXCEPTIONS.—A State may use funds ap-
portioned under paragraph (1)(B) or (1)(C)— 
‘‘(A) for projects serving areas other than 
the area specified in paragraph (2)(B) or (2)(C), 
as the case may be, if the Governor of the State 
certifies that all of the objectives of this section 
are being met in the specified area; or 
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‘‘(B) for projects anywhere in the State if 
the State has established a statewide program for 
meeting the objectives of this section. 
‘‘(4) MINIMUM APPORTIONMENT.— 
‘‘(A) IN GENERAL.—The Secretary may es-
tablish a minimum apportionment for States 
and territories under paragraph (1). 
‘‘(B) LIMITATION.—A minimum apportion-
ment received by a State or territory under this 
paragraph for a fiscal year may not exceed the 
total of the fiscal year 2012 apportionments re-
ceived by the State or territory under sections 
5310, 5316, and 5317 (as in effect on the day be-
fore the date of enactment of the Public Trans-
portation Act of 2012). 
‘‘(e) COMPETITIVE PROCESS FOR GRANTS TO SUB-
RECIPIENTS.— 
‘‘(1) AREAWIDE SOLICITATIONS.—A recipient of 
funds apportioned under subsection (d)(1)(A) shall 
conduct, in cooperation with the appropriate metro-
politan planning organization, an areawide solicita-
tion for applications for grants to the recipient and 
subrecipients under this section. 
‘‘(2) STATEWIDE SOLICITATION.—A recipient of 
funds apportioned under subsection (d)(1)(B) or 
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(d)(1)(C) shall conduct a statewide solicitation for 
applications for grants to the recipient and subrecipi-
ents under this section. 
‘‘(3) SPECIAL
RULE.—A recipient of a grant 
under this section may allocate the amounts provided 
under the grant to— 
‘‘(A) a nonprofit organization or private 
operator of public transportation, if the public 
transportation service provided under subsection 
(c)(1) is unavailable, insufficient, or inappro-
priate; or 
‘‘(B) in the case of a grant to provide the 
services described in subsection (c)(1)(A), a gov-
ernmental authority that— 
‘‘(i) is approved by the recipient to co-
ordinate services for elderly individuals and 
individuals with disabilities; or 
‘‘(ii) certifies that there are not any 
nonprofit organizations or private operators 
of public transportation services readily 
available in the area to provide the services 
described in subsection (c)(1)(A). 
‘‘(4) APPLICATION.—Recipients and subrecipi-
ents seeking to receive a grant from funds apportioned 
under subsection (d) shall submit to the recipient an 
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application in such form and in accordance with such 
requirements as the recipient shall establish. 
‘‘(5) GRANT AWARDS.—The recipient shall award 
grants under paragraphs (1) and (2) on a competitive 
basis. 
‘‘(6) FAIR
AND
EQUITABLE
DISTRIBUTION.—A 
recipient of a grant under this section shall certify to 
the Secretary that allocations of the grant to sub-
recipients will be distributed on a fair, equitable, and 
competitive basis. 
‘‘(f) GRANT REQUIREMENTS.—With respect to a grant 
made to provide services described in subsection (c), the Sec-
retary shall apply grant requirements that are consistent 
with requirements for activities authorized under sections 
5310, 5316, and 5317 (as such sections were in effect on 
the day before the date of enactment of the Public Transpor-
tation Act of 2012). 
‘‘(g) COORDINATION.— 
‘‘(1) IN GENERAL.—The Secretary shall coordi-
nate activities under this section with related activi-
ties under programs of other Federal departments and 
agencies. 
‘‘(2) PROJECT SELECTION AND PLANNING.—A re-
cipient of funds under this section shall certify to the 
Secretary that— 
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‘‘(A) the projects selected to receive funding 
under this section were derived from a locally de-
veloped, 
coordinated 
public 
transportation- 
human services transportation plan; 
‘‘(B) the plan was developed through a 
process that included participation by represent-
atives of public, private, and nonprofit transpor-
tation and human services providers and par-
ticipation by the public and appropriate advo-
cacy organizations; and 
‘‘(C) the planning process provided for con-
sideration of projects and strategies to create or 
improve regional transportation services that 
connect multiple jurisdictions. 
‘‘(h) GOVERNMENT’S SHARE OF COSTS.— 
‘‘(1) CAPITAL PROJECTS.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), a grant for a capital project 
under this section shall be for 80 percent of the 
net capital costs of the project, as determined by 
the Secretary. The recipient may provide addi-
tional local matching amounts. 
‘‘(B) EXCEPTION.—A State described in sec-
tion 120(b) of title 23 shall receive an increased 
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Government share in accordance with the for-
mula under such section. 
‘‘(2) OPERATING ASSISTANCE.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), a grant made under this sec-
tion for operating assistance may not exceed 50 
percent of the net operating costs of the project, 
as determined by the Secretary. 
‘‘(B) EXCEPTION.—A State described in sec-
tion 120(b) of title 23 shall receive a Government 
share of the net operating costs that equals 62.5 
percent of the Government share provided for 
under paragraph (1)(B). 
‘‘(3) REMAINDER.—The remainder of the net 
project costs— 
‘‘(A) may be provided from an undistrib-
uted cash surplus, a replacement or depreciation 
cash fund or reserve, a service agreement with a 
State or local social service agency or a private 
social service organization, or new capital; 
‘‘(B) may be derived from amounts appro-
priated to or made available to a department or 
agency of the Government (other than the De-
partment of Transportation) that are eligible to 
be expended for transportation; and 
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‘‘(C) notwithstanding subparagraph (B), 
may be derived from amounts made available to 
carry out the Federal lands transportation pro-
gram established by section 203 of title 23. 
‘‘(4) USE OF CERTAIN FUNDS.—For purposes of 
paragraph (3)(B), the prohibitions on the use of funds 
for 
matching 
requirements 
under 
section 
403(a)(5)(C)(vii) of the Social Security Act (42 
U.S.C. 603(a)(5)(C)(vii)) shall not apply to Federal 
or State funds to be used for transportation purposes. 
‘‘(5) LIMITATION ON OPERATING ASSISTANCE.— 
A recipient carrying out a program of operating as-
sistance under this section may not limit the level or 
extent of use of the Government grant for the payment 
of operating expenses. 
‘‘(i) LEASING VEHICLES.—Vehicles and equipment ac-
quired under this section may be leased to a recipient or 
subrecipient to improve transportation services designed to 
meet the special needs of elderly individuals, eligible low- 
income individuals, and individuals with disabilities. 
‘‘(j) MEAL DELIVERY
FOR HOMEBOUND INDIVID-
UALS.—Public transportation service providers receiving 
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 
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conflict with providing public transportation service or re-
duce service to public transportation passengers. 
‘‘(k) 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. 
‘‘(l) PROGRAM EVALUATION.—Not later than 2 years 
after the date of enactment of the Public Transportation 
Act of 2012, and not later than 2 years thereafter, the 
Comptroller General of the United States shall— 
‘‘(1) conduct a study to evaluate the grant pro-
gram authorized by this section, including a descrip-
tion of how grant recipients have coordinated activi-
ties carried out under this section with transportation 
activities carried out by recipients using grants 
awarded under title III of the Older Americans Act 
of 1965 (42 U.S.C. 3021 et seq.); and 
‘‘(2) transmit to the Committee on Transpor-
tation and Infrastructure of the House of Representa-
tives and the Committee on Banking, Housing, and 
Urban Affairs of the Senate a report describing the 
results of the study under subparagraph (A).’’. 
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(b) CLERICAL AMENDMENT.—The analysis for chapter 
53 is amended by striking the item relating to section 5317 
and inserting the following: 
‘‘5317. Coordinated access and mobility program formula grants.’’. 
SEC. 2011. TRAINING AND TECHNICAL ASSISTANCE PRO-
GRAMS. 
(a) AMENDMENT
TO SECTION HEADING.—Section 
5322 is amended by striking the section designation and 
heading and inserting the following: 
‘‘§ 5322. Training and technical assistance programs’’. 
(b) TRAINING AND OUTREACH.—Section 5322(a) is 
amended— 
(1) by striking ‘‘programs that address’’ and all 
that follows before the period at the end of the first 
sentence and inserting ‘‘programs that address train-
ing and outreach needs as they apply to public trans-
portation activities, and programs that provide pub-
lic transportation-related technical assistance to pro-
viders of public transportation services’’; 
(2) by striking ‘‘and’’ at the end of paragraph 
(3); 
(3) by striking the period at the end of para-
graph (4) and inserting ‘‘; and’’; and 
(4) by adding at the end the following: 
‘‘(5) technical assistance provided through na-
tional nonprofit organizations with demonstrated ca-
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312 
pacity and expertise in a particular area of public 
transportation policy.’’. 
(c) NATIONAL TRANSIT INSTITUTE, TECHNICAL AS-
SISTANCE, AND FUNDING.—Section 5322 is amended by 
adding at the end the following: 
‘‘(c) NATIONAL TRANSIT INSTITUTE.— 
‘‘(1) GRANTS AND CONTRACTS.—The Secretary 
may award grants or enter into contracts with a pub-
lic university to establish a National Transit Insti-
tute to support training and educational programs 
for Federal, State, and local transportation employees 
engaged or to be engaged in Government-aid public 
transportation work. 
‘‘(2) EDUCATION AND TRAINING.—The National 
Transit Institute shall provide education and train-
ing to employees of State and local governments at no 
cost when the education and training is related to a 
responsibility under a Government program. 
‘‘(d) TECHNICAL ASSISTANCE.—The Secretary may 
provide public transportation-related technical assistance 
under this section as follows: 
‘‘(1) To help public transportation providers 
comply with the Americans with Disabilities Act of 
1990 (42 U.S.C. 12101 et seq.) through a competi-
tively selected contract or cooperative agreement with 
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a national nonprofit organization serving individuals 
with disabilities that has a demonstrated capacity to 
carry out technical assistance, demonstration pro-
grams, research, public education, and other activities 
related to complying with such Act. 
‘‘(2) To help public transportation providers 
comply with human services transportation coordina-
tion requirements and to enhance the coordination of 
Federal resources for human services transportation 
with those of the Department of Transportation 
through a competitively selected contract or coopera-
tive agreement with a national nonprofit organiza-
tion that has a demonstrated capacity to carry out 
technical assistance, training, and support services 
related to complying with such requirements. 
‘‘(3) To help public transportation providers 
meet the transportation needs of elderly individuals 
through a competitively selected contract or coopera-
tive agreement with a national nonprofit organiza-
tion serving elderly individuals that has a dem-
onstrated capacity to carry out such activities. 
‘‘(4) To provide additional technical assistance, 
mobility management services, volunteer support serv-
ices, training, and research that the Secretary deter-
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mines will assist public transportation providers meet 
the goals of this section. 
‘‘(e) FUNDING.—Training and outreach programs and 
technical assistance activities performed under this section 
shall be paid for with administrative funds made available 
under section 5338(c).’’. 
(d) CLERICAL AMENDMENT.—The analysis for chapter 
53 is amended by striking the item relating to section 5322 
and inserting the following: 
‘‘5322. Training and technical assistance programs.’’. 
SEC. 2012. GENERAL PROVISIONS. 
(a) GOVERNMENT’S SHARE OF COSTS FOR CERTAIN 
PROJECTS.—Section 5323(i) is amended by adding at the 
end the following: 
‘‘(3) COSTS INCURRED BY PROVIDERS OF PUBLIC 
TRANSPORTATION BY VANPOOL.— 
‘‘(A) LOCAL MATCHING SHARE.—The local 
matching share provided by a recipient of assist-
ance for a capital project under this chapter 
may include any amounts expended by a pro-
vider of public transportation by vanpool for the 
acquisition of rolling stock to be used by such 
provider in the recipient’s service area, excluding 
any amounts the provider may have received in 
Federal, State, or local government assistance for 
such acquisition. 
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‘‘(B) USE OF REVENUES.—A private pro-
vider of public transportation by vanpool may 
use revenues it receives in the provision of public 
transportation service in the service area of a re-
cipient of assistance under this chapter that are 
in excess of the provider’s operating costs for the 
purpose of acquiring rolling stock, if the private 
provider enters into a legally binding agreement 
with the recipient that requires the provider to 
use the rolling stock in the recipient’s service 
area. 
‘‘(C) DEFINITIONS.—In this paragraph, the 
following definitions apply: 
‘‘(i) PRIVATE
PROVIDER
OF
PUBLIC 
TRANSPORTATION BY VANPOOL.—The term 
‘private provider of public transportation 
by vanpool’ means a private entity pro-
viding vanpool services in the service area 
of a recipient of assistance under this chap-
ter using a commuter highway vehicle or 
vanpool vehicle. 
‘‘(ii) COMMUTER
HIGHWAY
VEHICLE; 
VANPOOL
VEHICLE.—The term ‘commuter 
highway vehicle’ or ‘vanpool vehicle’ means 
any vehicle— 
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‘‘(I) the seating capacity of which 
is at least 6 adults (not including the 
driver); and 
‘‘(II) at least 80 percent of the 
mileage use of which can be reasonably 
expected to be for the purposes of trans-
porting commuters in connection with 
travel between their residences and 
their place of employment. 
‘‘(4) INCENTIVES
FOR
COMPETITIVELY
CON-
TRACTED SERVICE.— 
‘‘(A) ELIGIBILITY.—Subject to subpara-
graph (C), a recipient of assistance under this 
chapter that meets the targets under subpara-
graph (B) for competitively contracted service 
shall be eligible, at the request of the recipient, 
for a Federal share of 90 percent for the capital 
cost of buses and bus-related facilities and equip-
ment purchased with financial assistance made 
available under this chapter. 
‘‘(B) TARGET.—To qualify for the competi-
tively contracted service incentive program under 
this paragraph, a public transit agency or gov-
ernmental unit shall competitively contract for 
at least 20 percent of its fixed route bus service. 
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The percentage of competitively contracted serv-
ice shall be calculated by determining the ratio 
of competitively contracted service vehicles oper-
ated in annual maximum service to total vehicles 
operated in annual maximum service. 
‘‘(C) MAINTENANCE OF EFFORT.—A public 
transit agency or governmental unit shall be eli-
gible for an increased Federal share under this 
paragraph only if the amount of State and local 
funding provided to the affected public transit 
agency or governmental unit for the capital cost 
of buses and bus-related facilities and equipment 
will not be less than the average amount of fund-
ing for such purposes provided during the 3 fis-
cal years preceding the date of enactment of this 
paragraph. 
‘‘(D) DEFINITIONS.—In this paragraph, the 
following definitions apply: 
‘‘(i) 
COMPETITIVELY
CONTRACTED 
SERVICE.—The term ‘competitively con-
tracted service’ means fixed route bus trans-
portation service purchased by a public 
transit agency or governmental unit from a 
private transportation provider based on a 
written contract. 
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‘‘(ii) VEHICLES OPERATED IN ANNUAL 
MAXIMUM SERVICE.—The term ‘vehicles op-
erated in annual maximum service’ means 
the number of transit vehicles operated to 
meet the annual maximum service require-
ment during the peak season of the year, on 
the week and day that maximum service is 
provided.’’. 
(b) REASONABLE ACCESS
TO PUBLIC TRANSPOR-
TATION FACILITIES.—Section 5323 is amended by adding 
at the end the following: 
‘‘(q) REASONABLE ACCESS
TO PUBLIC TRANSPOR-
TATION FACILITIES.—A recipient of assistance under this 
chapter may not deny reasonable access for a private inter-
city or charter transportation operator to federally funded 
public transportation facilities, including intermodal facili-
ties, park and ride lots, and bus-only highway lanes.’’. 
(c) SPECIAL CONDITION ON CHARTER BUS TRANSPOR-
TATION SERVICE.—If, in any fiscal year, the Secretary is 
prohibited by law from enforcing regulations related to 
charter bus service under part 604 of title 49, Code of Fed-
eral Regulations, for any transit agency that during fiscal 
year 2008 was both initially granted a 60-day period to 
come into compliance with part 604, and then was subse-
quently granted an exception from such part— 
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(1) the transit agency shall be precluded from re-
ceiving its allocation of urbanized area formula grant 
funds for that fiscal year; and 
(2) any amounts withheld pursuant to para-
graph (1) shall be added to the amount that the Sec-
retary may apportion under section 5336 of title 49, 
United States Code, in the following fiscal year. 
SEC. 2013. CONTRACT REQUIREMENTS. 
Section 5325(h) is amended by striking ‘‘Federal Pub-
lic Transportation Act of 2005’’ and inserting ‘‘Public 
Transportation Act of 2012’’. 
SEC. 2014. VETERANS PREFERENCE IN TRANSIT CONSTRUC-
TION. 
Section 5325 is amended by adding at the end the fol-
lowing: 
‘‘(k) VETERANS EMPLOYMENT.—Recipients and sub-
recipients of Federal financial assistance under this chapter 
shall ensure that contractors working on a capital project 
funded using such assistance give a preference in the hiring 
or referral of laborers to veterans, as defined in section 2108 
of title 5, who have the requisite skills and abilities to per-
form the construction work required under the contract.’’. 
SEC. 2015. PRIVATE SECTOR PARTICIPATION. 
(a) IN GENERAL.—Chapter 53 is amended by insert-
ing after section 5325 the following: 
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‘‘§ 5326. Private sector participation 
‘‘(a) GENERAL PURPOSES.—In the interest of fulfilling 
the general purposes of this chapter under section 5301(f), 
the Secretary shall— 
‘‘(1) better coordinate public and private sector- 
provided public transportation services; and 
‘‘(2) promote more effective utilization of private 
sector expertise, financing, and operational capacity 
to deliver costly and complex new fixed guideway 
capital projects. 
‘‘(b) ACTIONS TO PROMOTE BETTER COORDINATION 
BETWEEN PUBLIC AND PRIVATE SECTOR PROVIDERS OF 
PUBLIC TRANSPORTATION.—The Secretary shall— 
‘‘(1) provide technical assistance to recipients of 
Federal transit grant assistance on practices and 
methods to best utilize private providers of public 
transportation; and 
‘‘(2) educate recipients of Federal transit grant 
assistance on laws and regulations under this chapter 
that impact private providers of public transpor-
tation. 
‘‘(c) ACTIONS TO PROVIDE TECHNICAL ASSISTANCE 
FOR ALTERNATIVE PROJECT DELIVERY METHODS.—Upon 
request by a sponsor of a new fixed guideway capital 
project, the Secretary shall— 
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‘‘(1) identify best practices for public-private 
partnerships models in the United States and in other 
countries; 
‘‘(2) develop standard public-private partnership 
transaction model contracts; and 
‘‘(3) perform financial assessments that include 
the calculation of public and private benefits of a pro-
posed public-private partnership transaction.’’. 
(b) CLERICAL AMENDMENT.—The analysis for such 
chapter is amended by inserting after the item relating to 
section 5325 the following: 
‘‘5326. Private sector participation.’’. 
(c) PUBLIC-PRIVATE PARTNERSHIP PROCEDURES AND 
APPROACHES.— 
(1) IDENTIFY
IMPEDIMENTS.—The Secretary 
shall— 
(A) except as provided in paragraph (4), 
identify any provisions of chapter 53 of title 49, 
United States Code, and any regulations or 
practices thereunder, that impede greater use of 
public-private partnerships and private invest-
ment in public transportation capital projects; 
(B) develop and implement on a project 
basis procedures and approaches that— 
(i) address such impediments in a 
manner similar to the Special Experi-
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mental Project Number 15 of the Federal 
Highway Administration (commonly re-
ferred to as ‘‘SEP–15’’); and 
(ii) protect the public interest and any 
public investment in covered projects. 
(2) REPORT.—Not later than 4 years after the 
date of enactment of this Act, the Secretary shall sub-
mit to Congress a report on the status of the proce-
dures and approaches developed and implemented 
under paragraph (1). 
(3) RULEMAKING.—Not later than 1 year after 
the date of enactment of this Act, the Secretary shall 
issue rules to carry out the procedures and ap-
proaches developed under paragraph (1). 
(4) RULE OF CONSTRUCTION.—Nothing in this 
subsection may be construed to allow the Secretary to 
waive any requirement under— 
(A) section 5333 of title 49, United States 
Code; 
(B) the National Environmental Policy Act 
of 1969 (42 U.S.C. 4321 et seq.); or 
(C) any other provision of Federal law not 
described in paragraph (2)(A). 
(d) CONTRACTING OUT STUDY.— 
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(1) IN GENERAL.—Not later than 1 year after 
the date of enactment of this Act, the Comptroller 
General of the United States shall submit to the Com-
mittee on Transportation and Infrastructure of the 
House of Representatives and the Committee on 
Banking, Housing, and Urban Affairs of the Senate 
a comprehensive report on the effect of contracting out 
public transportation operations and administrative 
functions on cost, availability and level of service, ef-
ficiency, and quality of service. 
(2) CONSIDERATIONS.—In developing the report, 
the Comptroller General shall consider— 
(A) the number of grant recipients that 
have contracted out services and the types of 
public transportation services that are performed 
under contract, including paratransit service, 
fixed route bus service, commuter rail operations, 
and administrative functions; 
(B) the size of the populations served by 
such grant recipients; 
(C) the basis for decisions regarding con-
tracting out such services; 
(D) comparative costs of providing service 
under contract to providing the same service 
through public transit agency employees, using 
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to the greatest extent possible a standard cost al-
location model; 
(E) the extent of unionization among pri-
vately contracted employees; and 
(F) barriers to contracting out public trans-
portation operations and administrative func-
tions. 
(e) GUIDANCE ON DOCUMENTING COMPLIANCE.—Not 
later than 1 year after the date of enactment of this Act, 
the Secretary shall publish in the Federal Register policy 
guidance regarding how to best document compliance by re-
cipients of Federal assistance under chapter 53 of title 49, 
United States Code, with the requirements regarding pri-
vate enterprise participation in public transportation plan-
ning and transportation improvement programs under sec-
tions 5203(g)(6) (as added by title IV of this Act), and sec-
tions 5306(a) and 5307(c) of this title. 
SEC. 2016. PROJECT MANAGEMENT OVERSIGHT. 
Section 5327(c)(1) is amended— 
(1) by striking ‘‘to make contracts’’; and 
(2) by striking subparagraph (F) and inserting 
the following: 
‘‘(F) 1 percent of amounts made available 
to carry out section 5337. 
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‘‘(G) 0.75 percent of amounts made avail-
able to carry out section 5317.’’. 
SEC. 2017. STATE SAFETY OVERSIGHT. 
(a) GENERAL AUTHORITY.—Section 5330(b) is amend-
ed to read as follows: 
‘‘(b) GENERAL AUTHORITY.—The Secretary may re-
quire that up to 100 percent of the amount required to be 
appropriated for use in a State or urbanized area in the 
State under section 5307 for a fiscal year beginning after 
September 30, 2013, be utilized on capital safety improve-
ment and state of good repair projects for the benefit of fixed 
guideway transportation systems in such State or urban-
ized area in the State before any other transit capital 
project is undertaken, if— 
‘‘(1) the State in the prior fiscal year has not 
met the requirements of subsection (c); or 
‘‘(2) the Secretary has certified that the State 
safety oversight agency (as defined in section 
5336(k)(1)(B)) does not have adequate technical ca-
pacity, personnel resources, and authority under rel-
evant State law to perform the agency’s responsibil-
ities described in that section.’’. 
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SEC. 2018. APPORTIONMENT OF APPROPRIATIONS FOR 
FORMULA GRANTS. 
(a) APPORTIONMENTS.—Section 5336(i) is amended to 
read as follows: 
‘‘(i) APPORTIONMENTS.—Of the amounts made avail-
able for each fiscal year under section 5338(a)(2)(B)— 
‘‘(1) 2 percent shall be apportioned to certain ur-
banized areas with populations of less than 200,000 
in accordance with subsection (j); 
‘‘(2) 1 percent shall be apportioned to applicable 
States for operational support and training costs of 
State safety oversight agencies and personnel em-
ployed by or under contract to such agencies in ac-
cordance with subsection (k); and 
‘‘(3) any amount not apportioned under para-
graphs (1) and (2) shall be apportioned to urbanized 
areas in accordance with subsections (a) through 
(c).’’. 
(b) STATE SAFETY OVERSIGHT AGENCIES.—Section 
5336(k) is amended to read as follows: 
‘‘(k) STATE SAFETY OVERSIGHT AGENCIES FOR-
MULA.— 
‘‘(1) DEFINITIONS.—In this subsection, the fol-
lowing definitions apply: 
‘‘(A) APPLICABLE STATES.—The term ‘ap-
plicable States’ means States that— 
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‘‘(i) have rail fixed guideway public 
transportation systems that are not subject 
to regulation by the Federal Railroad Ad-
ministration; or 
‘‘(ii) are designing or constructing rail 
fixed guideway public transportation sys-
tems that will not be subject to regulation 
by the Federal Railroad Administration. 
‘‘(B) STATE
SAFETY
OVERSIGHT
AGEN-
CIES.—The term ‘State safety oversight agency’ 
means a designated State authority that has re-
sponsibility— 
‘‘(i) for requiring, reviewing, approv-
ing, and monitoring safety program plans 
under section 5330(c)(1); 
‘‘(ii) for investigating hazardous condi-
tions and accidents on fixed guideway pub-
lic transportation systems that are not sub-
ject to regulation by the Federal Railroad 
Administration; and 
‘‘(iii) for requiring action to correct or 
eliminate those conditions. 
‘‘(2) APPORTIONMENT.— 
‘‘(A) 
APPORTIONMENT
FORMULA.—The 
amount to be apportioned under subsection (i)(2) 
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shall be apportioned among applicable States 
under a formula to be established by the Sec-
retary. Such formula shall take into account fac-
tors of fixed guideway revenue vehicle miles, 
fixed guideway route miles, and fixed guideway 
vehicle passenger miles attributable to all rail 
fixed guideway systems not subject to regulation 
by the Federal Railroad Administration within 
each applicable State. 
‘‘(B) 
RECIPIENTS
OF
APPORTIONED 
AMOUNTS.—Amounts apportioned under the for-
mula established pursuant to subparagraph (A) 
shall be made available as grants to State safety 
oversight agencies. Such grants are subject to 
uniform administrative requirements for grants 
and cooperative agreements to State and local 
governments under part 18 of title 49, Code of 
Federal Regulations, and are subject to the re-
quirements of this chapter as the Secretary deter-
mines appropriate. 
‘‘(C) USE OF FUNDS.—A State safety over-
sight agency may use funds apportioned under 
subparagraph (A) for program operational and 
administrative expenses, including employee 
training activities, that assist the agency in car-
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rying out its responsibilities described in para-
graph (1)(B). 
‘‘(D) CERTIFICATION PROCESS.— 
‘‘(i) DETERMINATIONS.—The Secretary 
shall determine whether or not each State 
safety oversight agency has adequate tech-
nical capacity, personnel resources, and au-
thority under relevant State law to perform 
the agency’s defined responsibilities de-
scribed in paragraph (1)(B). 
‘‘(ii) ISSUANCE
OF
CERTIFICATIONS 
AND DENIALS.—The Secretary shall— 
‘‘(I) issue a certification to each 
State safety oversight agency that the 
Secretary determines under clause (i) 
has adequate technical capacity, per-
sonnel resources, and authority; and 
‘‘(II) issue a denial of certifi-
cation to each State safety oversight 
agency that the Secretary determines 
under clause (i) does not have adequate 
technical capacity, personnel resources, 
and authority, and provide the agency 
with a written explanation of the rea-
sons for the denial. 
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‘‘(E) ANNUAL REPORT.—On or before July 
1 of each year, the Secretary shall submit to the 
Committee on Transportation and Infrastructure 
of the House of Representatives and the Com-
mittee on Banking, Housing, and Urban Affairs 
of the Senate a report on— 
‘‘(i) the amount of funds apportioned 
to each applicable State; and 
‘‘(ii) the certification status of each 
State safety oversight agency, including 
what steps an agency that has been denied 
certification must take in order to be so cer-
tified.’’. 
(c) CONFORMING AMENDMENT.—Section 5336(d)(1) is 
amended by striking ‘‘subsections (a)(1)(C)(vi) and 
(b)(2)(B) of section 5338’’ and inserting ‘‘section 
5338(a)(2)(B)’’. 
SEC. 2019. FIXED GUIDEWAY MODERNIZATION FORMULA 
GRANTS. 
(a) AMENDMENT
TO SECTION HEADING.—Section 
5337 is amended— 
(1) by striking the section designation and head-
ing and inserting the following: 
‘‘§ 5337. Fixed guideway modernization program’’. 
(b) PROGRAM GOALS.—Section 5337 is amended— 
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(1) by redesignating subsections (a) through (f) 
as subsections (c) through (h), respectively; and 
(2) by inserting before subsection (c) (as so redes-
ignated) the following: 
‘‘(a) PROGRAM GOALS.—The goals of the fixed guide-
way modernization program are— 
‘‘(1) to rehabilitate, maintain, and preserve the 
Nation’s fixed guideway public transportation sys-
tems; 
‘‘(2) to reduce the maintenance backlog and in-
crease the state of good repair of the Nation’s fixed 
guideway public transportation systems; and 
‘‘(3) to increase the overall ridership on fixed 
guideway public transportation systems. 
‘‘(b) GENERAL AUTHORITY.—The Secretary may make 
grants to eligible recipients under this section to assist State 
and local government authorities in financing capital 
projects to modernize eligible fixed guideway systems.’’. 
(c) DISTRIBUTION.—Section 5337(c) (as redesignated 
by subsection (b)(1) of this section) is amended by striking 
‘‘under section 5309’’ and all that follows before paragraph 
(1) and inserting ‘‘for a fiscal year as follows:’’. 
(d) AVAILABILITY OF AMOUNTS.—Section 5337(f) (as 
redesignated by subsection (b)(1) of this section) is amended 
to read as follows: 
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‘‘(f) AVAILABILITY OF AMOUNTS.—An amount appro-
priated under this section shall remain available for a pe-
riod of 3 fiscal years after the fiscal year in which the 
amount is appropriated. Any of such amount that is unob-
ligated at the end of such period shall be reapportioned for 
the next fiscal year among eligible recipients in accordance 
with subsection (c).’’. 
(e) GRANT REQUIREMENTS.—Section 5337 is amended 
by adding at the end the following: 
‘‘(i) UNDERTAKING PROJECTS IN ADVANCE.— 
‘‘(1) IN GENERAL.—When a recipient obligates 
all amounts apportioned to it under this section and 
then carries out a part of a project described in this 
section without amounts of the Government and ac-
cording to all applicable procedures and requirements 
(except to the extent the procedures and requirements 
limit a State to carrying out a project with amounts 
of the Government previously apportioned to it), the 
Secretary may pay to the recipient the Government’s 
share of the cost of carrying out that part when addi-
tional amounts are apportioned to the recipient under 
this section if— 
‘‘(A) the recipient applies for the payment; 
‘‘(B) the Secretary approves the payment; 
and 
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333 
‘‘(C) before carrying out that part, the Sec-
retary approves the plans and specifications for 
the part in the same way as for other projects 
under this section. 
‘‘(2) REQUIREMENT FOR APPROVAL OF APPLICA-
TIONS.—The Secretary may approve an application 
under paragraph (1) only if an authorization for this 
section is in effect for the fiscal year to which the ap-
plication applies. 
‘‘(3) INTEREST PAYMENTS.—The cost of carrying 
out that part of a project includes the amount of in-
terest earned and payable on bonds issued by the re-
cipient to the extent proceeds of the bonds are ex-
pended in carrying out this part. However, the 
amount of interest allowed under this paragraph may 
not be more than the most favorable financing terms 
reasonably available for the project at the time of bor-
rowing. The applicant shall certify, in a manner sat-
isfactory to the Secretary, that the applicant has 
shown reasonable diligence in seeking the most favor-
able financing terms. 
‘‘(j) GRANT REQUIREMENTS.—A grant under this sec-
tion shall be subject to the requirements of subsections (c), 
(d), (e), (h), (i), and (m) of section 5307.’’. 
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334 
(f) CLERICAL AMENDMENT.—The analysis for chapter 
53 is amended by striking the item relating to section 5337 
and inserting the following: 
‘‘5337. Fixed guideway modernization program.’’. 
SEC. 2020. AUTHORIZATIONS. 
(a) IN GENERAL.—Section 5338 is amended to read 
as follows: 
‘‘§ 5338. Authorizations 
‘‘(a) FORMULA AND BUS GRANTS.— 
‘‘(1) IN GENERAL.—There shall be available from 
the Alternative Transportation Account of the High-
way Trust Fund to carry out sections 5305, 5307, 
5310, 
5311, 
5317, 
5330, 
5335, 
and 
5337 
$8,400,000,000 for each of fiscal years 2013 through 
2016. 
‘‘(2) ALLOCATION
OF
FUNDS.—Amounts made 
available under paragraph (1) shall be allocated as 
follows: 
‘‘(A) $126,000,000 for each of fiscal years 
2013 through 2016 shall be available to carry 
out section 5305. 
‘‘(B) $4,578,000,000 for each of fiscal years 
2013 through 2016 shall be allocated in accord-
ance with section 5336 to provide financial as-
sistance for urbanized areas and State safety 
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oversight agencies under sections 5307 and 
5336(k). 
‘‘(C) $840,000,000 for each of fiscal years 
2013 through 2016 shall be available to provide 
financial assistance for States and local govern-
mental authorities to replace, rehabilitate, and 
purchase buses and related equipment and to 
construct bus-related facilities under section 
5310. Of such amount, $3,000,000 shall be avail-
able for each fiscal year for bus testing under 
section 5318. 
‘‘(D) $672,000,000 for each of fiscal years 
2013 through 2016 shall be available to provide 
financial assistance for rural areas under section 
5311. 
‘‘(E) $504,000,000 for each of fiscal years 
2013 through 2016 shall be available to provide 
financial assistance for recipients and subrecipi-
ents to provide coordinated access and mobility 
public transportation projects and services under 
section 5317. 
‘‘(F) $3,500,000 for each of fiscal years 
2013 through 2016 shall be available to carry 
out section 5335. Such amount shall be made 
available from funds allocated in accordance 
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with section 5336 before the apportionments 
under subsection 5336(i) are carried out. 
‘‘(G) $1,680,000,000 for each of fiscal years 
2013 through 2016 shall be made available and 
allocated in accordance with section 5337 to pro-
vide financial assistance for State and local gov-
ernment authorities to finance capital projects to 
modernize eligible fixed guideway systems. 
‘‘(b) CAPITAL INVESTMENT GRANTS.—There is author-
ized to be appropriated to carry out section 5309(m)(2) 
$1,955,000,000 for each of fiscal years 2013 through 2016. 
‘‘(c) RESEARCH, TRAINING
AND OUTREACH, AND 
TECHNICAL ASSISTANCE.—There is authorized to be appro-
priated to carry out the transit research program under sec-
tion 5312 and the training and outreach, National Transit 
Institute, and technical assistance activities authorized by 
section 5322, $45,000,000 for each of fiscal years 2013 
through 2016. Such amounts shall remain available until 
expended. 
‘‘(d) ADMINISTRATION.—There is authorized to be ap-
propriated to carry out sections 5326 and 5334 $98,000,000 
for each of fiscal years 2013 through 2016. 
‘‘(e) GRANTS AS CONTRACTUAL OBLIGATIONS.— 
‘‘(1) GRANTS FINANCED FROM HIGHWAY TRUST 
FUND.—A grant or contract that is approved by the 
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337 
Secretary and financed with amounts made available 
from the Alternative Transportation Account of the 
Highway Trust Fund pursuant to this section is a 
contractual obligation of the Government to pay the 
Federal share of the cost of the project. 
‘‘(2) GRANTS FINANCED FROM GENERAL FUND.— 
A grant or contract that is approved by the Secretary 
and financed with amounts appropriated in advance 
from the General Fund of the Treasury pursuant to 
this section is a contractual obligation of the Govern-
ment to pay the Federal share of the cost of the 
project only to the extent that amounts are appro-
priated for such purpose by an Act of Congress.’’. 
(b) CONFORMING AMENDMENT.—Section 5333(b)(1) is 
amended by striking ‘‘5338(b)’’ and inserting ‘‘5338(a)’’ 
each place it appears. 
SEC. 2021. OBLIGATION LIMITS. 
The total of all obligations from amounts made avail-
able from the Alternative Transportation Account of the 
Highway Trust Fund by, and amounts appropriated under, 
subsections (a) through (d) of section 5338 of title 49, 
United States Code, shall not exceed $10,498,000,000 in 
each of fiscal years 2013 through 2016, of which not more 
than $8,400,000,000 shall be from the Alternative Transpor-
tation Account. 
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SEC. 2022. PROGRAM ELIMINATION AND CONSOLIDATION. 
(a) GENERAL PROVISION.—A repeal or amendment 
made by this section shall not affect funds apportioned or 
allocated before the effective date of the repeal. 
(b) CLEAN
FUELS
DISCRETIONARY
GRANT
PRO-
GRAM.—Section 5308, and the item relating to that section 
in the analysis for chapter 53, are repealed. 
(c) CONFORMING AMENDMENTS REGARDING FORMULA 
GRANTS FOR SPECIAL NEEDS OF ELDERLY INDIVIDUALS 
AND INDIVIDUALS WITH DISABILITIES.— 
(1) Section 5327(c) is amended by striking 
‘‘5310’’ each place it appears and inserting ‘‘5317’’. 
(2) Section 31138(e)(4) is amended by striking 
‘‘section 5307, 5310, or 5311’’ and inserting ‘‘section 
5307, 5311, or 5317’’. 
(d) PUBLIC TRANSPORTATION ON INDIAN RESERVA-
TIONS.—Section 5311(c)(1) is repealed. 
(e) TRANSIT COOPERATIVE RESEARCH PROGRAM.— 
Section 5313, and the item relating to that section in the 
analysis for chapter 53, are repealed. 
(f) NATIONAL RESEARCH PROGRAMS.—Section 5314, 
and the item relating to that section in the analysis for 
chapter 53, are repealed. 
(g) NATIONAL TRANSIT INSTITUTE.— 
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(1) REPEAL.—Section 5315, and the item relat-
ing to that section in the analysis for chapter 53, are 
repealed. 
(2) 
CONFORMING
AMENDMENT.—Section 
5307(k)(1) is amended by striking ‘‘5315(c),’’. 
(h) BICYCLE FACILITIES.—Section 5319 is amended 
by striking the last sentence. 
(i) JOB ACCESS AND REVERSE COMMUTE FORMULA 
GRANTS.— 
(1) REPEAL.—Section 5316, and the item relat-
ing to that section in the analysis for chapter 53, are 
repealed. 
(2) CONFORMING AMENDMENT.—Chapter 53 is 
amended in section 5333(b)(1) by striking ‘‘5316,’’ 
each place it appears. 
(j) PAUL S. SARBANES TRANSIT IN THE PARKS PRO-
GRAM.— 
(1) REPEAL.—Section 5320, and the item relat-
ing to that section in the analysis for chapter 53, are 
repealed. 
(2) 
CONFORMING
AMENDMENT.—Section 
5327(c)(2)(B) is amended by striking ‘‘5311, and 
5320’’ and inserting ‘‘and 5311’’. 
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(k) REPEAL OF DEBT SERVICE RESERVE PILOT PRO-
GRAM.—Section 5323(e) is amended by striking paragraph 
(4). 
(l) PROGRAM OF INTERRELATED PROJECTS.—Section 
5328 is amended by striking subsection (c). 
(m) ALTERNATIVES ANALYSIS.—Section 5339, and the 
item relating to that section in the analysis for chapter 53, 
are repealed. 
(n) APPORTIONMENTS BASED ON GROWING STATES 
AND HIGH DENSITY STATES FORMULA FACTORS.—Section 
5340, and the item relating to that section in the analysis 
for chapter 53, are repealed. 
(o) CONTRACTED PARATRANSIT PILOT.—Section 3009 
of SAFETEA–LU (119 Stat. 1572) is amended by striking 
subsection (i). 
(p) ELDERLY INDIVIDUALS AND INDIVIDUALS WITH 
DISABILITIES
PILOT
PROGRAM.—Section 
3012(b) 
of 
SAFETEA–LU (49 U.S.C. 5310 note; 119 Stat. 1591) is 
repealed. 
(q) NATIONAL FUEL CELL BUS TECHNOLOGY DEVEL-
OPMENT PROGRAM.—Section 3045 of SAFETEA–LU (49 
U.S.C. 5308 note; 119 Stat. 1705), and the item relating 
to that section in the table of contents contained in section 
1(b) of that Act, are repealed. 
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(r) ALLOCATIONS
FOR NATIONAL RESEARCH
AND 
TECHNOLOGY PROGRAMS.—Section 3046 of SAFETEA–LU 
(49 U.S.C. 5338 note; 119 Stat. 1706), and the item relat-
ing to that section in the table of contents contained in sec-
tion 1(b) of that Act, are repealed. 
(s) OVER-THE-ROAD BUS ACCESSIBILITY PROGRAM.— 
Section 3038 of the Transportation Equity Act for the 21st 
Century (49 U.S.C. 5310 note; 112 Stat. 392), and the item 
relating to that section in the table of contents contained 
in section 1(b) of that Act, are repealed. 
SEC. 2023. EVALUATION AND REPORT. 
(a) EVALUATION.—The Comptroller General of the 
United States shall evaluate the progress and effectiveness 
of the Federal Transit Administration in assisting recipi-
ents of assistance under chapter 53 of title 49, United States 
Code, to comply with section 5332(b) of such title, includ-
ing— 
(1) by reviewing discrimination complaints, re-
ports, and other relevant information collected or pre-
pared by the Federal Transit Administration or re-
cipients of assistance from the Federal Transit Ad-
ministration pursuant to any applicable civil rights 
statute, regulation, or other requirement; and 
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(2) by reviewing the process that the Federal 
Transit Administration uses to resolve discrimination 
complaints filed by members of the public. 
(b) REPORT.—Not later than 1 year after the date of 
enactment of this Act, the Comptroller General shall submit 
to the Committee on Banking, Housing, and Urban Affairs 
of the Senate and the Committee on Transportation and 
Infrastructure of the House of Representatives a report con-
cerning the evaluation under subsection (a) that includes— 
(1) a description of the ability of the Federal 
Transit Administration to address discrimination 
and foster equal opportunities in federally funded 
public transportation projects, programs, and activi-
ties; 
(2) recommendations for improvements if the 
Comptroller General determines that improvements 
are necessary; and 
(3) information upon which the evaluation 
under subsection (a) is based. 
SEC. 2024. TRANSIT BUY AMERICA PROVISIONS. 
Section 5323(j) is amended by adding at the end the 
following: 
‘‘(10) APPLICATION OF BUY AMERICA TO TRANSIT 
PROGRAMS.—The requirements of this subsection 
apply to all contracts for a project carried out within 
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the scope of the applicable finding, determination, or 
decision under the National Environmental Policy 
Act of 1969 (42 U.S.C. 4321 et seq.), regardless of the 
funding source of such contracts, if at least one con-
tract for the project is funded with amounts made 
available to carry out this chapter. 
‘‘(11) ADDITIONAL WAIVER REQUIREMENTS.— 
‘‘(A) IN GENERAL.—If the Secretary receives 
a request for a waiver under this section, the 
Secretary shall provide notice of and an oppor-
tunity for public comment on the request at least 
30 days before making a finding based on the re-
quest. 
‘‘(B) NOTICE
REQUIREMENTS.—A notice 
provided under subparagraph (A) shall include 
the information available to the Secretary con-
cerning the request and shall be provided by elec-
tronic means, including on the official public 
Internet Web site of the Department of Transpor-
tation 
‘‘(C) DETAILED JUSTIFICATION.—If the Sec-
retary issues a waiver under this subsection, the 
Secretary shall publish in the Federal Register a 
detailed justification for the waiver that address-
es the public comments received under subpara-
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344 
graph (A) and shall ensure that such justifica-
tion is published before the waiver takes effect.’’. 
TITLE III—ENVIRONMENTAL 
STREAMLINING 
SEC. 3001. AMENDMENTS TO TITLE 23, UNITED STATES 
CODE. 
Except as otherwise expressly provided, whenever in 
this title an amendment or repeal is expressed in terms of 
an amendment to, or a repeal of, a section or other provi-
sion, the reference shall be considered to be made to a section 
or other provision of title 23, United States Code. 
SEC. 3002. DECLARATION OF POLICY. 
(a) EXPEDITED PROJECT DELIVERY.—Section 101(b) 
is amended by adding at the end the following: 
‘‘(4) EXPEDITED PROJECT DELIVERY.—Congress 
declares that it is in the national interest to expedite 
the delivery of surface transportation projects by sub-
stantially reducing the average length of the environ-
mental review process. Accordingly, it is the policy of 
the United States that— 
‘‘(A) the Secretary shall have the lead role 
among Federal agencies in carrying out the en-
vironmental review process for surface transpor-
tation projects; 
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‘‘(B) each Federal agency shall cooperate 
with the Secretary to expedite the environmental 
review 
process 
for 
surface 
transportation 
projects; 
‘‘(C) there shall be a presumption that the 
mode, facility type, and corridor location for a 
surface transportation project will be determined 
in the transportation planning process, as estab-
lished in sections 5203 and 5204 of title 49; 
‘‘(D) project sponsors shall not be prohibited 
from carrying out pre-construction project devel-
opment activities concurrently with the environ-
mental review process; 
‘‘(E) programmatic approaches shall be 
used, to the maximum extent possible, to reduce 
the need for project-by-project reviews and deci-
sions by Federal agencies; and 
‘‘(F) the Secretary shall actively support in-
creased opportunities for project sponsors to as-
sume responsibilities of the Secretary in carrying 
out the environmental review process.’’. 
SEC. 3003. EXEMPTION IN EMERGENCIES. 
If any road, highway, or bridge is in operation or 
under construction when damaged by an emergency de-
clared by the Governor of the State and concurred in by 
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the Secretary, or declared by the President pursuant to the 
Robert T. Stafford Disaster Relief and Emergency Assist-
ance Act (42 U.S.C. 5121), and is reconstructed in the same 
location with the same capacity, dimensions, and design as 
before the emergency, then that reconstruction project shall 
be exempt from any further environmental reviews, approv-
als, licensing, and permit requirements under— 
(1) the National Environmental Policy Act of 
1969 (42 U.S.C. 4321 et seq.); 
(2) sections 402 and 404 of the Federal Water 
Pollution Control Act (33 U.S.C. 1342, 1344); 
(3) the National Historic Preservation Act (16 
U.S.C. 470 et seq.); 
(4) the Migratory Bird Treaty Act (16 U.S.C. 
703 et seq.); 
(5) the Wild and Scenic Rivers Act (16 U.S.C. 
1271 et seq.); 
(6) the Fish and Wildlife Coordination Act (16 
U.S.C. 661 et seq.); 
(7) the Endangered Species Act of 1973 (16 
U.S.C. 1531 et seq.), except when the reconstruction 
occurs in designated critical habitat for threatened 
and endangered species; 
(8) Executive Order 11990 (42 U.S.C. 4321 note; 
relating to the protection of wetlands); and 
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(9) any Federal law (including regulations) re-
quiring no net loss of wetlands. 
SEC. 3004. ADVANCE ACQUISITION OF REAL PROPERTY IN-
TERESTS. 
(a) REAL PROPERTY INTERESTS.—Section 108 is 
amended— 
(1) by striking ‘‘real property’’ each place it ap-
pears and inserting ‘‘real property interests’’; 
(2) by striking ‘‘right-of-way’’ each place it ap-
pears and inserting ‘‘real property interest’’; and 
(3) by striking ‘‘rights-of-way’’ each place it ap-
pears and inserting ‘‘real property interests’’. 
(b) STATE-FUNDED EARLY ACQUISITION
OF REAL 
PROPERTY INTERESTS.—Section 108(c) is amended— 
(1) in the subsection heading by striking ‘‘EARLY 
ACQUISITION
OF
RIGHTS-OF-WAY’’ and inserting 
‘‘STATE-FUNDED
EARLY
ACQUISITION
OF
REAL 
PROPERTY INTERESTS’’; 
(2) by redesignating paragraphs (1) and (2) as 
paragraphs (2) and (3), respectively; 
(3) in paragraph (2), as redesignated— 
(A) in the heading by striking ‘‘GENERAL 
RULE’’ and inserting ‘‘ELIGIBILITY FOR REIM-
BURSEMENT’’; and 
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(B) by striking ‘‘Subject to paragraph (2)’’ 
and inserting ‘‘Subject to paragraph (3)’’; 
(4) by inserting before paragraph (2), as redesig-
nated, the following: 
‘‘(1) IN GENERAL.—A State may carry out, at 
the expense of the State, acquisitions of interests in 
real property for a project before completion of the re-
view process required for the project under the Na-
tional Environmental Policy Act of 1969 (42 U.S.C. 
4321 et seq.) without affecting subsequent approvals 
required for the project by the State or any Federal 
agency.’’; and 
(5) in paragraph (3), as redesignated— 
(A) in the matter preceding subparagraph 
(A) by striking ‘‘in paragraph (1)’’ and insert-
ing ‘‘in paragraph (2)’’; and 
(B) in subparagraph (G) by striking ‘‘both 
the Secretary and the Administrator of the Envi-
ronmental Protection Agency have concurred’’ 
and inserting ‘‘the Secretary has determined’’. 
(c) FEDERALLY FUNDED ACQUISITION OF REAL PROP-
ERTY INTERESTS.—Section 108 is further amended by add-
ing at the end the following: 
‘‘(d) FEDERALLY FUNDED EARLY ACQUISITION
OF 
REAL PROPERTY INTERESTS.— 
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‘‘(1) IN GENERAL.—The Secretary may authorize 
the use of Federal funds for the acquisition of a real 
property interest by a State. For purposes of this sub-
section, an acquisition of a real property interest in-
cludes the acquisition of any interest in land, includ-
ing the acquisition of a contractual right to acquire 
any interest in land, or any other similar action to 
acquire or preserve rights-of-way for a transportation 
facility. 
‘‘(2) STATE CERTIFICATION.—A State requesting 
Federal funding for an acquisition of a real property 
interest shall certify in writing that— 
‘‘(A) the State has authority to acquire the 
real property interest under State law; 
‘‘(B) the acquisition of the real property in-
terest is for a transportation purpose; and 
‘‘(C) the State acknowledges that early ac-
quisition will not be considered by the Secretary 
in the environmental assessment of a project, the 
decision relative to the need to construct a 
project, or the selection of a project design or lo-
cation. 
‘‘(3) ENVIRONMENTAL COMPLIANCE.—Before au-
thorizing Federal funding for an acquisition of a real 
property interest, the Secretary shall complete for the 
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acquisition the review process under the National En-
vironmental Policy Act of 1969 (42 U.S.C. 4321 et 
seq.). For purposes of the review process, the acquisi-
tion of a real property interest shall be treated as 
having independent utility and does not limit consid-
eration of alternatives for future transportation im-
provements with respect to the real property interest. 
‘‘(4) PROGRAMMING.—The acquisition of a real 
property interest for which Federal funding is re-
quested shall be included as a project in an applicable 
transportation improvement program under sections 
5203 and 5204 of title 49. The acquisition project 
may be included in the transportation improvement 
program on its own, without including the future 
construction project for which the real property inter-
est is being acquired. The acquisition project may 
consist of the acquisition of a specific parcel, a por-
tion of a transportation corridor, or an entire trans-
portation corridor. 
‘‘(5) OTHER
REQUIREMENTS.—The acquisition 
of a real property interest shall be carried out in 
compliance with all requirements applicable to the ac-
quisition of real property interests for federally fund-
ed transportation projects. 
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351 
‘‘(e) CONSIDERATION
OF LONG-RANGE TRANSPOR-
TATION NEEDS.—The Secretary shall encourage States and 
other public authorities, if practicable, to acquire transpor-
tation real property interests that are sufficient to accom-
modate long-range transportation needs and, if possible, to 
do so through the acquisition of broad real property inter-
ests that have the capacity for expansion over a 50- to 100- 
year period and the potential to accommodate one or more 
transportation modes.’’. 
SEC. 3005. STANDARDS. 
Section 109 (as amended by title I of this Act) is fur-
ther amended by adding at the end the following: 
‘‘(s) UNDERTAKING DESIGN ACTIVITIES BEFORE COM-
PLETION OF ENVIRONMENTAL REVIEW PROCESS.— 
‘‘(1) IN GENERAL.—A State may carry out, at 
the expense of the State, design activities at any level 
of detail for a project before completion of the review 
process required for the project under the National 
Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
seq.) without affecting subsequent approvals of the 
project. 
‘‘(2) ELIGIBILITY FOR REIMBURSEMENT.—Sub-
ject to paragraph (3), funds apportioned to a State 
under this title may be used to participate in the 
payment of costs incurred by the State for design ac-
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352 
tivities, if the results of the activities are subsequently 
incorporated (in whole or in substantial part) into a 
project eligible for surface transportation program 
funds. 
‘‘(3) TERMS
AND
CONDITIONS.—The Federal 
share payable of the costs described in paragraph (2) 
shall be eligible for reimbursement out of funds appor-
tioned to a State under this title when the design ac-
tivities are incorporated (in whole or in substantial 
part) into a project eligible for surface transportation 
program funds, if the State demonstrates to the Sec-
retary and the Secretary finds that— 
‘‘(A) before the time that the cost incurred 
by a State is approved for Federal participation, 
environmental compliance pursuant to the Na-
tional Environmental Policy Act of 1969 (42 
U.S.C. 4321 et seq.) has been completed for the 
project for which the design activities were con-
ducted by the State; and 
‘‘(B) the design activities conducted pursu-
ant to this subsection did not preclude the con-
sideration of alternatives to the project.’’. 
SEC. 3006. LETTING OF CONTRACTS. 
(a) BIDDING REQUIREMENTS.—Section 112(b)(1) is 
amended to read as follows: 
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353 
‘‘(1) IN GENERAL.— 
‘‘(A) 
COMPETITIVE
BIDDING
REQUIRE-
MENT.—Subject to paragraphs (2), (3), and (4), 
construction of each project, subject to the provi-
sions of subsection (a), shall be performed by 
contract awarded by competitive bidding, unless 
the 
State 
transportation 
department 
dem-
onstrates, to the satisfaction of the Secretary, 
that some other method is more cost effective or 
that an emergency exists. 
‘‘(B) BASIS OF AWARD.— 
‘‘(i) IN
GENERAL.—Contracts for the 
construction of each project shall be award-
ed only on the basis of the lowest responsive 
bid submitted by a bidder meeting estab-
lished criteria of responsibility. 
‘‘(ii) PROHIBITION.—No requirement 
or obligation shall be imposed as a condi-
tion precedent to the award of a contract to 
such bidder for a project, or to the Sec-
retary’s concurrence in the award of a con-
tract to such bidder, unless such require-
ment or obligation is otherwise lawful and 
is specifically set forth in the advertised 
specifications.’’. 
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354 
(b) DESIGN-BUILD CONTRACTING.—Section 112(b)(3) 
is amended— 
(1) in subparagraph (A) by striking ‘‘subpara-
graph (C)’’ and inserting ‘‘subparagraph (B)’’; 
(2) by striking subparagraph (B); 
(3) by redesignating subparagraphs (C) through 
(E) as subparagraphs (B) through (D), respectively; 
and 
(4) in subparagraph (C), as redesignated— 
(A) in the matter preceding clause (i) by 
striking ‘‘of the SAFETEA-LU’’ and inserting 
‘‘of the American Energy and Infrastructure 
Jobs Act of 2012’’; 
(B) in clause (ii) by striking ‘‘and’’ at the 
end; 
(C) in clause (iii)— 
(i) by striking ‘‘final design or’’; and 
(ii) by striking the period at the end 
and inserting ‘‘; and’’; and 
(D) by adding at the end the following: 
‘‘(iv) permit the State transportation 
department, the local transportation agency, 
and the design-build contractor to proceed, 
at the expense of one or more of those enti-
ties, with design activities at any level of 
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detail for a project before completion of the 
review process required for the project under 
the National Environmental Policy Act of 
1969 (42 U.S.C. 4321 et seq.) without af-
fecting subsequent approvals required for 
the project. Design activities carried out 
under this clause shall be eligible for Fed-
eral reimbursement as a project expense in 
accordance with the requirements under sec-
tion 109(s).’’. 
(c) EFFICIENCIES IN CONTRACTING.—Section 112(b) 
is amended by adding at the end the following: 
‘‘(4) METHOD OF CONTRACTING.— 
‘‘(A) IN GENERAL.— 
‘‘(i) TWO-PHASE
CONTRACT.—A con-
tracting agency may award a two-phase 
contract for preconstruction and construc-
tion services. 
‘‘(ii) 
PRE-CONSTRUCTION
SERVICES 
PHASE.—In the pre-construction services 
phase, the contractor shall provide the con-
tracting agency with advice for scheduling, 
work 
sequencing, 
cost 
engineering, 
constructability, cost estimating, and risk 
identification. 
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‘‘(iii) AGREEMENT.—Prior to the start 
of the construction services phase, the con-
tracting agency and the contractor may 
agree to a price and other factors specified 
in regulation for the construction of the 
project or a portion of the project. 
‘‘(iv) CONSTRUCTION
PHASE.—If an 
agreement is reached under clause (iii), the 
contractor shall be responsible for the con-
struction of the project or portion of the 
project at the negotiated price and other 
factors specified in regulation. 
‘‘(B) SELECTION.—A contract shall be 
awarded to a contractor using a competitive se-
lection process based on qualifications, experi-
ence, best value, or any other combination of fac-
tors considered appropriate by the contracting 
agency. 
‘‘(C) TIMING.— 
‘‘(i) RELATIONSHIP
TO
NEPA
PROC-
ESS.—Prior to the completion of the process 
required under section 102 of the National 
Environmental Policy Act of 1969 (42 
U.S.C. 4332), a contracting agency may— 
‘‘(I) issue requests for proposals; 
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‘‘(II) proceed with the award of a 
contract for preconstruction services 
under subparagraph (A); and 
‘‘(III) issue notices to proceed 
with a preliminary design and any 
work related to preliminary design. 
‘‘(ii) 
PRECONSTRUCTION
SERVICES 
PHASE.—If the preconstruction services 
phase of a contract under subparagraph 
(A)(ii) focuses primarily on one alternative, 
the Secretary shall require that the contract 
include appropriate provisions to achieve 
the objectives of section 102 of the National 
Environmental Policy Act of 1969 (42 
U.S.C. 4332) and comply with other appli-
cable Federal laws and regulations. 
‘‘(iii) 
CONSTRUCTION
SERVICES 
PHASE.—A contracting agency may not 
proceed with the award of the construction 
services phase of a contract under subpara-
graph (A)(iv) and may not proceed, or per-
mit any consultant or contractor to proceed, 
with construction until completion of the 
process required under section 102 of the 
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358 
National Environmental Policy Act of 1969 
(42 U.S.C. 4332). 
‘‘(iv) APPROVAL REQUIREMENT.—Prior 
to authorizing construction activities, the 
Secretary shall approve the contracting 
agency’s price estimate for the entire 
project, as well as any price agreement with 
the general contractor for the project or a 
portion of the project. 
‘‘(v) 
DESIGN
ACTIVITIES.—A 
con-
tracting agency may proceed, at its expense, 
with design activities at any level of detail 
for a project before completion of the review 
process required for the project under the 
National Environmental Policy Act of 1969 
(42 U.S.C. 4321 et seq.) without affecting 
subsequent 
approvals 
required 
for 
the 
project. Design activities carried out under 
this clause shall be eligible for Federal reim-
bursement as a project expense in accord-
ance with the requirements under section 
109(s).’’. 
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359 
SEC. 3007. ELIMINATION OF DUPLICATION IN HISTORIC 
PRESERVATION REQUIREMENTS. 
(a) PRESERVATION OF PARKLANDS.—Section 138 is 
amended by adding at the end the following: 
‘‘(c) ELIMINATION OF DUPLICATION FOR HISTORIC 
SITES AND PROPERTIES.—The requirements of this section 
shall be considered to be satisfied for an historic site or 
property where its treatment has been agreed upon in a 
memorandum of agreement by invited and mandatory sig-
natories, including the Advisory Council on Historic Pres-
ervation, if participating, in accordance with section 106 
of the National Historic Preservation Act (16 U.S.C. 
470f).’’. 
(b) POLICY ON LANDS, WILDLIFE AND WATERFOWL 
REFUGES, AND HISTORIC SITES.—Section 303 of title 49, 
United States Code, is amended by adding at the end the 
following: 
‘‘(e) ELIMINATION OF DUPLICATION FOR HISTORIC 
SITES AND PROPERTIES.—The requirements of this section 
shall be considered to be satisfied for an historic site or 
property where its treatment has been agreed upon in a 
memorandum of agreement by invited and mandatory sig-
natories, including the Advisory Council on Historic Pres-
ervation, if participating, in accordance with section 106 
of the National Historic Preservation Act (16 U.S.C. 
470f).’’. 
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360 
SEC. 3008. FUNDING THRESHOLD. 
Section 139(b) is amended by adding at the end the 
following: 
‘‘(3) FUNDING
THRESHOLD.—The Secretary’s 
approval of a project receiving funds under this title 
or under chapter 53 of title 49 shall not be considered 
a Federal action for the purposes of the National En-
vironmental Policy Act of 1969 if such funds— 
‘‘(A) constitute 15 percent or less of the 
total estimated project costs; or 
‘‘(B) are less than $10,000,000.’’. 
SEC. 3009. EFFICIENT ENVIRONMENTAL REVIEWS FOR 
PROJECT DECISIONMAKING. 
(a) FLEXIBILITY.—Section 139(b) is further amend-
ed— 
(1) in paragraph (2) by inserting ‘‘, and any re-
quirements established in this section may be satis-
fied,’’ after ‘‘exercised’’; and 
(2) by adding after paragraph (3), as added by 
this Act, the following: 
‘‘(4) PROGRAMMATIC COMPLIANCE.—At the re-
quest of a State, the Secretary may modify the proce-
dures developed under this section to encourage pro-
grammatic approaches and strategies with respect to 
environmental programs and permits (in lieu of 
project-by-project reviews).’’. 
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361 
(b) FEDERAL
LEAD
AGENCY.—Section 139(c) is 
amended— 
(1) in paragraph (1) by adding at the end the 
following: ‘‘If the project requires approval from more 
than one modal administration within the Depart-
ment, the Secretary shall designate a single modal ad-
ministration to serve as the Federal lead agency for 
the Department in the environmental review process 
for the project.’’; 
(2) in paragraph (3) by inserting ‘‘or other ap-
provals by the Secretary’’ after ‘‘chapter 53 of title 
49’’; and 
(3) by striking paragraph (5) and inserting the 
following: 
‘‘(5) ADOPTION AND USE OF DOCUMENTS.—Any 
environmental document prepared in accordance with 
this subsection shall be adopted and used by any Fed-
eral agency in making any approval of a project sub-
ject to this section as the document required to be 
completed under the National Environmental Policy 
Act of 1969.’’. 
(c) PARTICIPATING AGENCIES.— 
(1) 
EFFECT
OF
DESIGNATION.—Section 
139(d)(4) is amended to read as follows: 
‘‘(4) EFFECT OF DESIGNATION.— 
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‘‘(A) 
REQUIREMENT.—A 
participating 
agency shall comply with the requirements of 
this section and any schedule established under 
this section. 
‘‘(B) IMPLICATION.—Designation as a par-
ticipating agency under this subsection shall not 
imply that the participating agency— 
‘‘(i) supports a proposed project; or 
‘‘(ii) has any jurisdiction over, or spe-
cial expertise with respect to evaluation of, 
the project.’’. 
(2) CONCURRENT REVIEWS.—Section 139(d)(7) 
is amended to read as follows: 
‘‘(7) CONCURRENT
REVIEWS.—Each partici-
pating agency and cooperating agency shall— 
‘‘(A) carry out obligations of that agency 
under other applicable law concurrently, and in 
conjunction, with the review required under the 
National Environmental Policy Act of 1969 (42 
U.S.C. 4321 et seq.); and 
‘‘(B) formulate and implement administra-
tive, policy, and procedural mechanisms to en-
able the agency to ensure completion of the envi-
ronmental review process in a timely, coordi-
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nated, and environmentally responsible man-
ner.’’. 
(d) PROJECT INITIATION.—Section 139(e) is amended 
by adding at the end the following: ‘‘The project sponsor 
may satisfy this requirement by submitting to the Secretary 
a draft notice for publication in the Federal Register an-
nouncing the preparation of an environmental impact 
statement for the project.’’. 
(e) ALTERNATIVES
ANALYSIS.—Section 139(f) is 
amended— 
(1) in paragraph (4)— 
(A) by amending subparagraph (B) to read 
as follows 
‘‘(B) RANGE OF ALTERNATIVES.— 
‘‘(i) IN GENERAL.—Following partici-
pation under paragraph (1), the lead agen-
cy shall determine the range of alternatives 
for consideration in any document which 
the lead agency is responsible for preparing 
for the project. 
‘‘(ii) LIMITATION.—The range of alter-
natives shall be limited to alternatives that 
are— 
‘‘(I) consistent with the transpor-
tation mode and general design of the 
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project described in the long-range 
transportation plan or transportation 
improvement program prepared pursu-
ant to section 5203 or 5204 of title 49; 
and 
‘‘(II) consistent with the funding 
identified for the project under the fis-
cal constraint requirements of section 
5203 or 5204 of title 49. 
‘‘(iii) RESTRICTION.—A Federal agen-
cy may not require the evaluation of any 
alternative that was evaluated, but not 
adopted— 
‘‘(I) in any prior State or Federal 
environmental document with regard 
to the applicable long-range transpor-
tation plan or transportation improve-
ment program; or 
‘‘(II) after the preparation of a 
programmatic or tiered environmental 
document that evaluated alternatives to 
the project. 
‘‘(iv) LEGAL SUFFICIENCY.—The eval-
uation of the range of alternatives shall be 
deemed legally sufficient if the environ-
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365 
mental document complies with the require-
ments of this paragraph.’’; 
(B) in subparagraph (C)— 
(i) by striking ‘‘(C) METHODOLO-
GIES.—The lead agency’’ and inserting the 
following: 
‘‘(C) METHODOLOGIES.— 
‘‘(i) IN GENERAL.—The lead agency’’; 
(ii) by striking ‘‘in collaboration with 
participating agencies at appropriate times 
during the study process’’ and inserting 
‘‘after consultation with participating agen-
cies as part of the scoping process’’; and 
(iii) by adding at the end the fol-
lowing: 
‘‘(ii) COMMENTS.—Each participating 
agency shall limit comments on such meth-
odologies to those issues that are within the 
authority and expertise of such partici-
pating agency. 
‘‘(iii) STUDIES.—The lead agency may 
not conduct studies proposed by any par-
ticipating agency that are not within the 
authority or expertise of such participating 
agency.’’; and 
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(C) by adding at the end the following: 
‘‘(E) LIMITATIONS ON THE EVALUATION OF 
IMPACTS EVALUATED IN PRIOR ENVIRONMENTAL 
DOCUMENTS.— 
‘‘(i) IN
GENERAL.—The lead agency 
may not reevaluate, and a Federal agency 
may not require the reevaluation of, cumu-
lative impacts or growth-inducing impacts 
where such impacts were previously evalu-
ated in— 
‘‘(I) a long-range transportation 
plan or transportation improvement 
program developed pursuant to section 
5203 or 5204 of title 49; 
‘‘(II) a prior environmental docu-
ment approved by the Secretary; or 
‘‘(III) a prior State environ-
mental document approved pursuant to 
a State law that is substantially equiv-
alent to section 102(2)(C) of the Na-
tional Environmental Policy Act of 
1969 (42 U.S.C. 4332(2)(C)). 
‘‘(ii) LEGAL SUFFICIENCY.—The eval-
uation of cumulative impacts and growth 
inducing impacts shall be deemed legally 
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sufficient if the environmental document 
complies with the requirements of this para-
graph.’’; and 
(2) by adding at the end the following: 
‘‘(5) EFFECTIVE DECISIONMAKING.— 
‘‘(A) CONCURRENCE.—At the discretion of 
the lead agency, a participating agency shall be 
presumed to concur in the determinations made 
by the lead agency under this subsection unless 
the participating agency submits an objection to 
the lead agency in writing within 30 days after 
receiving notice of the lead agency’s determina-
tion and specifies the statutory basis for the ob-
jection. 
‘‘(B) ADOPTION OF DETERMINATION.—If the 
participating agency concurs or does not object 
within the 30-day period, the participating 
agency shall adopt the lead agency’s determina-
tion for purposes of any reviews, approvals, or 
other actions taken by the participating agency 
as part of the environmental review process for 
the project.’’. 
(f) COORDINATION PLAN.—Section 139(g) is amend-
ed— 
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(1) in paragraph (1)(A) by striking ‘‘project or 
category of projects’’ and inserting ‘‘project, category 
of projects, or program of projects’’; 
(2) by amending paragraph (3) to read as fol-
lows: 
‘‘(3) DEADLINES FOR DECISIONS UNDER OTHER 
LAWS.— 
‘‘(A) PRIOR
APPROVAL
DEADLINE.—If a 
participating agency is required to make a de-
termination regarding or otherwise approve or 
disapprove the project prior to the record of deci-
sion or finding of no significant impact of the 
lead agency, such participating agency shall 
make such determination or approval not later 
than 30 days after the lead agency publishes no-
tice of the availability of a final environmental 
impact statement or other final environmental 
document, or not later than such other date that 
is otherwise required by law, whichever occurs 
first. 
‘‘(B) OTHER DEADLINES.—With regard to 
any determination or approval of a partici-
pating agency that is not subject to subpara-
graph (A), each participating agency shall make 
any required determination regarding or other-
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wise approve or disapprove the project not later 
than 90 days after the date that the lead agency 
approves the record of decision or finding of no 
significant impact for the project, or not later 
than such other date that is otherwise required 
by law, whichever occurs first. 
‘‘(C) DEEMED
APPROVED.—In the event 
that any participating agency fails to make a 
determination or approve or disapprove the 
project within the applicable deadline described 
in subparagraphs (A) and (B), the project shall 
be deemed approved by such participating agen-
cy, and such approval shall be deemed to comply 
with the applicable requirements of Federal law. 
‘‘(D) JUDICIAL REVIEW.— 
‘‘(i) IN GENERAL.—An approval of a 
project under subparagraph (C) shall not be 
subject to judicial review. 
‘‘(ii) WRITTEN
FINDING.—The Sec-
retary 
may 
issue 
a 
written 
finding 
verifying the approval made in accordance 
with this paragraph.’’; and 
(3) by striking paragraph (4). 
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(g) ISSUE IDENTIFICATION AND RESOLUTION.—Sec-
tion 139(h)(4) is amended by adding at the end the fol-
lowing: 
‘‘(C) RESOLUTION FINAL.— 
‘‘(i) IN
GENERAL.—The lead agency 
and participating agencies may not recon-
sider the resolution of any issue agreed to 
by the relevant agencies in a meeting under 
subparagraph (A). 
‘‘(ii) COMPLIANCE
WITH
APPLICABLE 
LAW.—Any such resolution shall be deemed 
to comply with applicable law notwith-
standing that the agencies agreed to such 
resolution prior to the approval of the envi-
ronmental document.’’. 
(h) STREAMLINED DOCUMENTATION AND DECISION-
MAKING.—Section 139 (as amended by title I of this Act) 
is further amended— 
(1) by redesignating subsections (i) through (l) 
as subsections (k) through (n), respectively; and 
(2) by inserting after subsection (h) the fol-
lowing: 
‘‘(i) STREAMLINED DOCUMENTATION AND DECISION-
MAKING.— 
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‘‘(1) IN GENERAL.—The lead agency in the envi-
ronmental review process for a project, in order to re-
duce paperwork and expedite decisionmaking, shall 
prepare a condensed final environmental impact 
statement. 
‘‘(2) CONDENSED FORMAT.—A condensed final 
environmental impact statement for a project in the 
environmental review process shall consist only of— 
‘‘(A) an incorporation by reference of the 
draft environmental impact statement; 
‘‘(B) any updates to specific pages or sec-
tions of the draft environmental impact state-
ment as appropriate; and 
‘‘(C) responses to comments on the draft en-
vironmental impact statement and copies of the 
comments. 
‘‘(3) TIMING
OF
DECISION.—Notwithstanding 
any other provision of law, in conducting the envi-
ronmental review process for a project, the lead agen-
cy shall combine a final environmental impact state-
ment and a record of decision for the project into a 
single document if— 
‘‘(A) the alternative approved in the record 
of decision is either a preferred alternative that 
was identified in the draft environmental impact 
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statement or is a modification of such preferred 
alternative that was developed in response to 
comments on the draft environmental impact 
statement; 
‘‘(B) the Secretary has received a certifi-
cation from a State under section 128, if such a 
certification is required for the project; and 
‘‘(C) the Secretary determines that the lead 
agency, participating agency, or the project 
sponsor has committed to implement the meas-
ures applicable to the approved alternative that 
are identified in the final environmental impact 
statement. 
‘‘(j) SUPPLEMENTAL ENVIRONMENTAL REVIEW AND 
RE-EVALUATION.— 
‘‘(1) 
SUPPLEMENTAL
ENVIRONMENTAL
RE-
VIEW.—After the approval of a record of decision or 
finding of no significant impact with regard to a 
project, an agency may not require the preparation of 
a subsequent environmental document for such project 
unless the lead agency determines that— 
‘‘(A) changes to the project will result in 
new significant impacts that were not evaluated 
in the environmental document; or 
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‘‘(B) new information has become available 
or changes in circumstances have occurred after 
the lead agency approval of the project that will 
result in new significant impacts that were not 
evaluated in the environmental document. 
‘‘(2) RE-EVALUATIONS.—The Secretary may only 
require the re-evaluation of a document prepared 
under the National Environmental Policy Act of 1969 
(42 U.S.C. 4321 et seq.) if— 
‘‘(A) the Secretary determines that the 
events in paragraph (1)(A) or (1)(B) apply; and 
‘‘(B) more than 5 years has elapsed since 
the Secretary’s prior approval of the project or 
authorization of project funding. 
‘‘(3) CHANGE TO RECORD OF DECISION.—After 
the approval of a record of decision, the Secretary 
may not require the record of decision to be changed 
solely because of a change in the fiscal circumstances 
surrounding the project.’’. 
(i) REGULATIONS.—Section 139(m) (as redesignated 
by subsection (h)(1) of this section) is further amended to 
read as follows: 
‘‘(m) REGULATIONS.— 
‘‘(1) IN GENERAL.—Not later than 1 year after 
the date of enactment of the American Energy and 
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Infrastructure Jobs Act of 2012, the Secretary, by reg-
ulation, shall— 
‘‘(A) implement this section; and 
‘‘(B) establish methodologies and procedures 
for evaluating the environmental impacts, in-
cluding cumulative impacts and growth-induc-
ing impacts, of transportation projects subject to 
this section. 
‘‘(2) COMPLIANCE WITH APPLICABLE LAW.—Any 
environmental document that utilizes the methodolo-
gies and procedures established under this subsection 
shall be deemed to comply with the applicable require-
ments of— 
‘‘(A) the National Environmental Policy 
Act of 1969 (42 U.S.C. 4321 et seq.) or its imple-
menting regulations; or 
‘‘(B) any other Federal environmental stat-
ute applicable to transportation projects.’’. 
(j) LIMITATIONS ON CLAIMS.—Section 139(n) (as re-
designated by subsection (h)(1) of this section) is further 
amended— 
(1) in paragraph (1) by striking ‘‘180 days’’ and 
inserting ‘‘90 days’’; and 
(2) by striking paragraph (2) and inserting the 
following: 
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‘‘(2) NEW INFORMATION.—The preparation of a 
supplemental environmental impact statement or 
other environmental document when required by this 
section shall be considered a separate final agency ac-
tion and the deadline for filing a claim for judicial 
review of such action shall be 90 days after the date 
of publication of a notice in the Federal Register an-
nouncing such action.’’. 
(k) LIMITATIONS ON JUDICIAL RELIEF.—Section 139 
is further amended by adding at the end the following: 
‘‘(o) LIMITATIONS ON JUDICIAL RELIEF.—Notwith-
standing any other provision of law, the following limita-
tions shall apply to actions brought before a court in con-
nection with a project under this section: 
‘‘(1) Venue for any action shall be where the 
project is located. 
‘‘(2) A specific property interest impacted by the 
transportation project in question must exist in order 
to have standing to bring an action. 
‘‘(3) No action may be commenced by any person 
alleging a violation of— 
‘‘(A) the National Environmental Policy 
Act of 1969 (42 U.S.C. 4321 et seq.), chapters 5 
and 7 of title 5, or any other Federal law appli-
cable to the evaluation, avoidance, or mitigation 
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376 
of environmental impacts of the project if such 
Federal law is identified in the draft environ-
mental impact statement, unless such person 
provided written notice to the lead agency of the 
alleged violation of law, and the facts supporting 
such claim, during the public comment period on 
the draft environmental impact statement; or 
‘‘(B) any other law with regard to the 
project unless such person provided written no-
tice to the applicable approving agency of the al-
leged violation of law, and the facts supporting 
such claim, during the public comment period on 
such agency approval. 
‘‘(4) Elected or appointed officials working for 
the Government or a State government may not be 
named in their individual capacities in an action if 
they are acting within the scope of their official du-
ties.’’. 
SEC. 3010. DISPOSAL OF HISTORIC PROPERTIES. 
(a) DISPOSAL
OF HISTORIC PROPERTIES.—Section 
156 is amended— 
(1) by striking the section heading and inserting 
‘‘Sale or lease of real property’’; and 
(2) by adding at the end the following: 
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‘‘(d) ASSESSMENT OF ADVERSE EFFECTS.—Notwith-
standing part 800 of title 36, Code of Federal Regulations, 
the sale or lease by a State of any historic property that 
is not listed in the National Register of Historic Places shall 
not be considered an adverse effect to the property within 
any consultation process carried out under section 106 of 
the National Historic Preservation Act (16 U.S.C. 470f).’’. 
(b) CLERICAL AMENDMENT.—The analysis for chapter 
1 is amended by striking the item relating to section 156 
and inserting the following: 
‘‘156. Sale or lease of real property.’’. 
SEC. 3011. INTEGRATION OF PLANNING AND ENVIRON-
MENTAL REVIEW. 
(a) IN GENERAL.—Chapter 1 is amended by adding 
at the end the following: 
‘‘§ 167. Integration of planning and environmental re-
view 
‘‘(a) DEFINITIONS.—In this section, the following defi-
nitions apply: 
‘‘(1) ENVIRONMENTAL REVIEW PROCESS.— 
‘‘(A) IN
GENERAL.—The term ‘environ-
mental review process’ means the process for pre-
paring for a project an environmental impact 
statement, environmental assessment, categorical 
exclusion, or other document prepared under the 
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National Environmental Policy Act of 1969 (42 
U.S.C. 4321 et seq.). 
‘‘(B) 
INCLUSIONS.—The 
term 
‘environ-
mental review process’ includes the process for 
and completion of any environmental permit, 
approval, review, or study required for a project 
under any Federal law other than the National 
Environmental Policy Act of 1969 (42 U.S.C. 
4321 et seq.). 
‘‘(2) PLANNING PRODUCT.—The term ‘planning 
product’ means any decision, analysis, study, or other 
documented result of an evaluation or decisionmaking 
process carried out during transportation planning. 
‘‘(3) PROJECT.—The term ‘project’ means any 
highway project or program of projects, public trans-
portation capital project or program of projects, or 
multimodal project or program of projects that re-
quires the approval of the Secretary. 
‘‘(4) PROJECT
SPONSOR.—The term ‘project 
sponsor’ means the agency or other entity, including 
any private or public-private entity, that seeks ap-
proval of the Secretary for a project. 
‘‘(b) PURPOSE AND FINDINGS.— 
‘‘(1) PURPOSE.—The purpose of this section is to 
establish the authority and provide procedures for 
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achieving integrated planning and environmental re-
view processes to— 
‘‘(A) enable statewide and metropolitan 
planning processes to more effectively serve as 
the foundation for project decisions; 
‘‘(B) foster better decisionmaking; 
‘‘(C) reduce duplication in work; 
‘‘(D) avoid delays in transportation im-
provements; and 
‘‘(E) better transportation and environ-
mental results for communities and the United 
States. 
‘‘(2) FINDINGS.—Congress finds the following: 
‘‘(A) This section is consistent with and is 
adopted in furtherance of sections 101 and 102 
of the National Environmental Policy Act of 
1969 (42 U.S.C. 4331 and 4332) and section 109 
of this title. 
‘‘(B) This section should be broadly con-
strued and may be applied to any project, class 
of projects, or program of projects carried out 
under this title or chapter 53 of title 49. 
‘‘(c) ADOPTION OF PLANNING PRODUCTS FOR USE IN 
NEPA PROCEEDINGS.— 
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‘‘(1) IN GENERAL.—Notwithstanding any other 
provision of law and subject to the conditions set forth 
in subsection (e), the Federal lead agency for a 
project, at the request of the project sponsors, may 
adopt and use a planning product in proceedings re-
lating to any class of action in the environmental re-
view process of the project. 
‘‘(2) PARTIAL
ADOPTION
OF
PLANNING
PROD-
UCTS.—The Federal lead agency may adopt a plan-
ning product under paragraph (1) in its entirety or 
may select portions for adoption. 
‘‘(3) TIMING.—A determination under para-
graph (1) with respect to the adoption of a planning 
product shall be made at the time the lead agencies 
decide the appropriate scope of environmental review 
for the project. 
‘‘(d) APPLICABILITY.— 
‘‘(1) PLANNING DECISIONS.—Planning decisions 
that may be adopted pursuant to this section in-
clude— 
‘‘(A) a purpose and need or goals and objec-
tives statement for the project, including with re-
spect to whether tolling, private financial assist-
ance, or other special financial measures are nec-
essary to implement the project; 
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‘‘(B) a decision with respect to travel cor-
ridor location, including project termini; 
‘‘(C) a decision with respect to modal 
choice, including a decision to implement cor-
ridor or subarea study recommendations to ad-
vance different modal solutions as separate 
projects with independent utility; 
‘‘(D) a decision with respect to the elimi-
nation of unreasonable alternatives and the selec-
tion of the range of reasonable alternatives for 
detailed study during the environmental review 
process; 
‘‘(E) a basic description of the environ-
mental setting; 
‘‘(F) a decision with respect to methodolo-
gies for analysis; and 
‘‘(G) identifications of programmatic level 
mitigation for potential impacts that the Federal 
lead agency, in consultation with Federal, State, 
local, and tribal resource agencies, determines 
are most effectively addressed at a regional or 
national program level, including— 
‘‘(i) system-level measures to avoid, 
minimize, or mitigate impacts of proposed 
transportation 
investments 
on 
environ-
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382 
mental resources, including regional eco-
system and water resources; and 
‘‘(ii) potential mitigation activities, lo-
cations, and investments. 
‘‘(2) PLANNING
ANALYSES.—Planning analyses 
that may be adopted pursuant to this section include 
studies with respect to— 
‘‘(A) travel demands; 
‘‘(B) regional development and growth; 
‘‘(C) local land use, growth management, 
and development; 
‘‘(D) population and employment; 
‘‘(E) natural and built environmental con-
ditions; 
‘‘(F) environmental resources and environ-
mentally sensitive areas; 
‘‘(G) potential environmental effects, includ-
ing the identification of resources of concern and 
potential cumulative effects on those resources, 
identified as a result of a statewide or regional 
cumulative effects assessment; and 
‘‘(H) mitigation needs for a proposed ac-
tion, or for programmatic level mitigation, for 
potential effects that the Federal lead agency de-
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383 
termines are most effectively addressed at a re-
gional or national program level. 
‘‘(e) CONDITIONS.—Adoption and use of a planning 
product under this section is subject to a determination by 
the Federal lead agency, in consultation with joint lead 
agencies and project sponsors as appropriate, that the fol-
lowing conditions have been met: 
‘‘(1) The planning product was developed 
through a planning process conducted pursuant to 
applicable Federal law. 
‘‘(2) The planning process included broad multi-
disciplinary consideration of systems-level or cor-
ridor-wide transportation needs and potential effects. 
‘‘(3) During the planning process, notice was 
provided through publication or other means to Fed-
eral, State, and local government agencies and tribal 
governments that might have an interest in the pro-
posed project, and to members of the general public, 
of the planning products that the planning process 
might produce and that might be relied on during the 
environmental review process, and such entities have 
been provided an appropriate opportunity to partici-
pate in the planning process leading to such planning 
product. 
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384 
‘‘(4) Prior to determining the scope of environ-
mental review for the project, the joint lead agencies 
have made documentation relating to the planning 
product available to Federal, State, and local govern-
mental agencies and tribal governments that may 
have an interest in the proposed action, and to mem-
bers of the general public. 
‘‘(5) There is no significant new information or 
new circumstance that has a reasonable likelihood of 
affecting the continued validity or appropriateness of 
the planning product. 
‘‘(6) The planning product is based on reliable 
and reasonably current data and reasonable and sci-
entifically acceptable methodologies. 
‘‘(7) The planning product is documented in suf-
ficient detail to support the decision or the results of 
the analysis and to meet requirements for use of the 
information in the environmental review process. 
‘‘(8) The planning product is appropriate for 
adoption and use in the environmental review process 
for the project. 
‘‘(f) EFFECT
OF ADOPTION.—Notwithstanding any 
other provision of law, any planning product adopted by 
the Federal lead agency in accordance with this section 
shall not be reconsidered or made the subject of additional 
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385 
interagency consultation during the environmental review 
process of the project unless the Federal lead agency, in con-
sultation with joint lead agencies and project sponsors as 
appropriate, determines that there is significant new infor-
mation or new circumstances that affect the continued va-
lidity or appropriateness of the adopted planning product. 
Any planning product adopted by the Federal lead agency 
in accordance with this section may be relied upon and used 
by other Federal agencies in carrying out reviews of the 
project. 
‘‘(g) RULE OF CONSTRUCTION.—This section may not 
be construed to make the National Environmental Policy 
Act of 1969 (42 U.S.C. 4321 et seq.) process applicable to 
the transportation planning process conducted under chap-
ter 52 of title 49. Initiation of the National Environmental 
Policy Act of 1969 process as a part of, or concurrently 
with, transportation planning activities does not subject 
transportation plans and programs to the National Envi-
ronmental Policy Act of 1969 process. This section may not 
be construed to affect the use of planning products in the 
National Environmental Policy Act of 1969 process pursu-
ant to other authorities under law or to restrict the initi-
ation of the National Environmental Policy Act of 1969 
process during planning.’’. 
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386 
(b) CLERICAL AMENDMENT.—The analysis for such 
chapter is amended by adding at end the following: 
‘‘167. Integration of planning and environmental review.’’. 
SEC. 3012. DEVELOPMENT OF PROGRAMMATIC MITIGATION 
PLANS. 
(a) IN GENERAL.—Chapter 1 (as amended by this 
title) is further amended by adding at the end the following: 
‘‘§ 168. 
Development 
of 
programmatic 
mitigation 
plans 
‘‘(a) IN GENERAL.—As part of the statewide or metro-
politan transportation planning process, a State or metro-
politan planning organization may develop one or more 
programmatic mitigation plans to address the potential en-
vironmental impacts of future transportation projects. 
‘‘(b) SCOPE.— 
‘‘(1) SCALE.—A programmatic mitigation plan 
may be developed on a regional, ecosystem, watershed, 
or statewide scale. 
‘‘(2) RESOURCES.—The plan may encompass 
multiple environmental resources within a defined ge-
ographic area or may focus on a specific resource, 
such as aquatic resources, parklands, or wildlife habi-
tat. 
‘‘(3) PROJECT IMPACTS.—The plan may address 
impacts from all projects in a defined geographic area 
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387 
or may focus on a specific type of project, such as 
bridge replacements. 
‘‘(4) CONSULTATION.—The scope of the plan 
shall be determined by the State or metropolitan 
planning organization, as appropriate, in consulta-
tion with the agency or agencies with jurisdiction 
over the resources being addressed in the mitigation 
plan. 
‘‘(c) CONTENTS.—A programmatic mitigation plan 
may include— 
‘‘(1) an assessment of the condition of environ-
mental resources in the geographic area covered by the 
plan, including an assessment of recent trends and 
any potential threats to those resources; 
‘‘(2) an assessment of potential opportunities to 
improve the overall quality of environmental resources 
in the geographic area covered by the plan, through 
strategic mitigation for impacts of transportation 
projects; 
‘‘(3) standard measures for mitigating certain 
types of impacts; 
‘‘(4) parameters for determining appropriate 
mitigation for certain types of impacts, such as miti-
gation ratios or criteria for determining appropriate 
mitigation sites; 
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388 
‘‘(5) adaptive management procedures, such as 
protocols that involve monitoring predicted impacts 
over time and adjusting mitigation measures in re-
sponse to information gathered through the moni-
toring; and 
‘‘(6) acknowledgment of specific statutory or reg-
ulatory requirements that must be satisfied when de-
termining appropriate mitigation for certain types of 
resources. 
‘‘(d) PROCESS.—Before adopting a programmatic 
mitigation plan, a State or metropolitan planning organi-
zation shall— 
‘‘(1) consult with the agency or agencies with ju-
risdiction over the environmental resources considered 
in the programmatic mitigation plan; 
‘‘(2) make a draft of the plan available for re-
view and comment by applicable environmental re-
source agencies and the public; 
‘‘(3) consider any comments received from such 
agencies and the public on the draft plan; and 
‘‘(4) address such comments in the final plan. 
‘‘(e) INTEGRATION WITH OTHER PLANS.—A pro-
grammatic mitigation plan may be integrated with other 
plans, including watershed plans, ecosystem plans, species 
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389 
recovery plans, growth management plans, and land use 
plans. 
‘‘(f) CONSIDERATION IN PROJECT DEVELOPMENT AND 
PERMITTING.—If a programmatic mitigation plan has been 
developed pursuant to this section, any Federal agency re-
sponsible for environmental reviews, permits, or approvals 
for a transportation project shall give substantial weight 
to the recommendations in a programmatic mitigation plan 
when carrying out their responsibilities under applicable 
laws. 
‘‘(g) PRESERVATION
OF EXISTING AUTHORITIES.— 
Nothing in this section limits the use of programmatic ap-
proaches to reviews under the National Environmental Pol-
icy Act of 1969 (42 U.S.C. 4321 et seq.).’’. 
(b) CLERICAL AMENDMENT.—The analysis for such 
chapter (as amended by this title) is further amended by 
adding at the end the following: 
‘‘168. Development of programmatic mitigation plans.’’. 
SEC. 3013. STATE ASSUMPTION OF RESPONSIBILITY FOR 
CATEGORICAL EXCLUSIONS. 
Section 326(a) is amended— 
(1) in paragraph (2) by striking ‘‘and only for 
types of activities specifically designated by the Sec-
retary’’ and inserting ‘‘and for any type of activity 
for which a categorical exclusion classification is ap-
propriate’’; and 
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390 
(2) by adding at the end the following: 
‘‘(4) PRESERVATION OF FLEXIBILITY.—The Sec-
retary shall not require a State, as a condition of as-
suming responsibility under this section, to forego 
project delivery methods that are otherwise permis-
sible for highway projects.’’. 
SEC. 3014. SURFACE TRANSPORTATION PROJECT DELIVERY 
PROGRAM. 
(a) PROGRAM NAME.—Section 327 is amended— 
(1) in the section heading by striking ‘‘pilot’’; 
and 
(2) in subsection (a)(1) by striking ‘‘pilot’’. 
(b) 
ASSUMPTION
OF
RESPONSIBILITY.—Section 
327(a)(2) is amended— 
(1) in subparagraph (A) by striking ‘‘highway’’; 
(2) in subparagraph (B) by striking clause (ii) 
and inserting the following: 
‘‘(ii) the Secretary may not assign any 
responsibility imposed on the Secretary by 
section 5203 or 5204 of title 49.’’; and 
(3) by adding at the end the following: 
‘‘(F) PRESERVATION OF FLEXIBILITY.—The 
Secretary may not require a State, as a condi-
tion of participation in the program, to forego 
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391 
project delivery methods that are otherwise per-
missible for projects.’’. 
(c) STATE PARTICIPATION.—Section 327(b) is amend-
ed— 
(1) by amending paragraph (1) to read as fol-
lows: 
‘‘(1) PARTICIPATING STATES.—All States are eli-
gible to participate in the program.’’; and 
(2) in paragraph (2) by striking ‘‘this section, 
the Secretary shall promulgate’’ and inserting 
‘‘amendments to this section by the American Energy 
and Infrastructure Jobs Act of 2012, the Secretary 
shall amend, as appropriate,’’. 
(d) WRITTEN AGREEMENT.—Section 327(c) is amend-
ed— 
(1) in paragraph (3)(D) by striking the period 
at the end and inserting a semicolon; and 
(2) by adding at the end the following: 
‘‘(4) have a term of not more than 5 years; and 
‘‘(5) be renewable.’’. 
(e) CONFORMING AMENDMENT.—Section 327(e) is 
amended by striking ‘‘subsection (i)’’ and inserting ‘‘sub-
section (j)’’. 
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392 
(f) AUDITS.—Section 327(g)(1)(B) is amended by 
striking ‘‘subsequent year’’ and inserting ‘‘of the third and 
fourth years’’. 
(g) MONITORING.—Section 327 is further amended— 
(1) by redesignating subsections (h) and (i) as 
subsections (i) and (j), respectively; and 
(2) by inserting after subsection (g) the fol-
lowing: 
‘‘(h) MONITORING.—After the fourth year of the par-
ticipation of a State in the program, the Secretary shall 
monitor compliance by the State with the written agree-
ment, including the provision by the State of financial re-
sources to carry out the written agreement.’’. 
(h) TERMINATION.—Section 327(j) (as redesignated by 
subsection (g)(1) of this section) is amended to read as fol-
lows: 
‘‘(j) TERMINATION.—The Secretary may terminate the 
participation of any State in the program if— 
‘‘(1) the Secretary determines that the State is 
not adequately carrying out the responsibilities as-
signed to the State; 
‘‘(2) the Secretary provides to the State— 
‘‘(A) notification of the determination of 
noncompliance; and 
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393 
‘‘(B) a period of at least 30 days during 
which to take such corrective action as the Sec-
retary determines is necessary to comply with 
the applicable agreement; and 
‘‘(3) the State, after the notification and period 
provided under paragraph (2), fails to take satisfac-
tory corrective action, as determined by the Sec-
retary.’’. 
(i) DEFINITIONS.—Section 327 is amended by adding 
at the end the following: 
‘‘(k) DEFINITIONS.—In this section, the following defi-
nitions apply: 
‘‘(1) 
MULTIMODAL
PROJECT.—The 
term 
‘multimodal project’ means a project funded, in whole 
or in part, under this title or chapter 53 of title 49 
and involving the participation of more than one De-
partment of Transportation administration or agen-
cy. 
‘‘(2) PROJECT.—The term ‘project’ means any 
highway 
project, 
public 
transportation 
capital 
project, or multimodal project that requires the ap-
proval of the Secretary.’’. 
(j) CLERICAL AMENDMENT.—The analysis for chapter 
3 is amended by striking the item relating to section 327 
and inserting the following: 
‘‘327. Surface transportation project delivery program.’’. 
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394 
SEC. 3015. PROGRAM FOR ELIMINATING DUPLICATION OF 
ENVIRONMENTAL REVIEWS. 
(a) IN GENERAL.—Chapter 3 (as amended by title I 
of this Act) is further amended by adding at the end the 
following: 
‘‘§ 331. Program for eliminating duplication of envi-
ronmental reviews 
‘‘(a) ESTABLISHMENT.— 
‘‘(1) IN GENERAL.—The Secretary shall establish 
a program to eliminate duplicative environmental re-
views and approvals under State and Federal law of 
projects. Under this program, a State may use State 
laws and procedures to conduct reviews and make ap-
provals in lieu of Federal environmental laws and 
regulations, consistent with the provisions of this sec-
tion. 
‘‘(2) PARTICIPATING STATES.—All States are eli-
gible to participate in the program. 
‘‘(3) SCOPE OF ALTERNATIVE REVIEW AND AP-
PROVAL PROCEDURES.—For purposes of this section, 
alternative environmental review and approval proce-
dures may include one or more of the following: 
‘‘(A) Substitution of one or more State envi-
ronmental laws for one or more Federal environ-
mental laws, if the Secretary determines in ac-
cordance with this section that the State environ-
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395 
mental laws provide environmental protection 
and opportunities for public involvement that 
are substantially equivalent to the applicable 
Federal environmental laws. 
‘‘(B) Substitution of one or more State reg-
ulations for Federal regulations implementing 
one or more Federal environmental laws, if the 
Secretary determines in accordance with this sec-
tion that the State regulations provide environ-
mental protection and opportunities for public 
involvement that are substantially equivalent to 
the Federal regulations. 
‘‘(b) APPLICATION.—To participate in the program, a 
State shall submit to the Secretary an application con-
taining such information as the Secretary may require, in-
cluding— 
‘‘(1) a full and complete description of the pro-
posed alternative environmental review and approval 
procedures of the State; 
‘‘(2) for each State law or regulation included in 
the proposed alternative environmental review and 
approval procedures of the State, an explanation of 
the basis for concluding that the law or regulation 
meets the requirements under subsection (a)(3); and 
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396 
‘‘(3) evidence of having sought, received, and ad-
dressed comments on the proposed application from 
the public and appropriate Federal environmental re-
source agencies. 
‘‘(c) REVIEW OF APPLICATION.—The Secretary shall— 
‘‘(1) review an application submitted under sub-
section (b); 
‘‘(2) approve or disapprove the application in 
accordance with subsection (d) not later than 90 days 
after the date of the receipt of the application; and 
‘‘(3) transmit to the State notice of the approval 
or disapproval, together with a statement of the rea-
sons for the approval or disapproval. 
‘‘(d) APPROVAL OF STATE PROGRAMS.— 
‘‘(1) IN GENERAL.—The Secretary shall approve 
each such application if the Secretary finds that the 
proposed alternative environmental review and ap-
proval procedures of the State are substantially equiv-
alent to the applicable Federal environmental laws 
and Federal regulations. 
‘‘(2) EXCLUSION.—The National Environmental 
Policy Act of 1969 (42 U.S.C. 4321 et seq.) and the 
Endangered Species Act of 1973 (16 U.S.C. 1531 et 
seq.) shall not apply to any decision by the Secretary 
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397 
to approve or disapprove any application submitted 
pursuant to this section. 
‘‘(e) COMPLIANCE WITH PERMITS.—Compliance with 
a permit or other approval of a project issued pursuant to 
a program approved by the Secretary under this section 
shall be deemed compliance with the Federal laws and regu-
lations identified in the program approved by the Secretary 
pursuant to this section. 
‘‘(f) REVIEW AND TERMINATION.— 
‘‘(1) REVIEW.—All State alternative environ-
mental review and approval procedures approved 
under this section shall be reviewed by the Secretary 
not less than once every 5 years. 
‘‘(2) PUBLIC NOTICE AND COMMENT.—In con-
ducting the review process under paragraph (1), the 
Secretary shall provide notice and an opportunity for 
public comment. 
‘‘(3) EXTENSIONS AND TERMINATIONS.—At the 
conclusion of the review process, the Secretary may 
extend the State alternative environmental review and 
approval procedures for an additional 5-year period 
or terminate the State program. 
‘‘(g) REPORT TO CONGRESS.—Not later than 2 years 
after the date of enactment of this section and annually 
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398 
thereafter, the Secretary shall submit to Congress a report 
that describes the administration of the program. 
‘‘(h) DEFINITIONS.—For purposes of this section: 
‘‘(1) ENVIRONMENTAL LAW.—The term ‘environ-
mental law’ includes any law that provides proce-
dural or substantive protection, as applicable, for the 
natural or built environment with regard to the con-
struction and operation of projects. 
‘‘(2) FEDERAL
ENVIRONMENTAL
LAWS.—The 
term ‘Federal environmental laws’ means laws gov-
erning the review of environmental impacts of, and 
issuance of permits and other approvals for, the con-
struction and operation of projects, including section 
102(2)(C) of the National Environmental Policy Act 
of 1969 (42 U.S.C. 4332(2)(C)), section 404 of the 
Federal Water Pollution Control Act (33 U.S.C. 
1344), section 106 of the National Historic Preserva-
tion Act (16 U.S.C. 470f), and sections 7(a)(2), 
9(a)(1)(B), and 10(a)(1)(B) of the Endangered Spe-
cies 
Act 
of 
1973 
(16 
U.S.C. 
1536(a)(2), 
1538(a)(1)(B), 1539(a)(1)(B)). 
‘‘(3) 
MULTIMODAL
PROJECT.—The 
term 
‘multimodal project’ means a project funded, in whole 
or in part, under this title or chapter 53 of title 49 
and involving the participation of more than one De-
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399 
partment of Transportation administration or agen-
cy. 
‘‘(4) PROJECT.—The term ‘project’ means any 
highway 
project, 
public 
transportation 
capital 
project, or multimodal project that requires the ap-
proval of the Secretary.’’. 
(b) CLERICAL AMENDMENT.—The analysis for such 
chapter (as amended by title I of this Act) is further amend-
ed by adding at the end the following: 
‘‘331. Program for eliminating duplication of environmental reviews.’’. 
SEC. 3016. STATE PERFORMANCE OF LEGAL SUFFICIENCY 
REVIEWS. 
(a) IN GENERAL.—Chapter 3 (as amended by this 
title) is further amended by adding at the end the following: 
‘‘§ 332. State performance of legal sufficiency reviews 
‘‘(a) IN GENERAL.—At the request of any State trans-
portation department, the Federal Highway Administra-
tion shall enter into an agreement with the State transpor-
tation department to authorize the State to carry out the 
legal sufficiency reviews for environmental impact state-
ments and environmental assessments under the National 
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) 
in accordance with this section. 
‘‘(b) TERMS OF AGREEMENT.—An agreement author-
izing a State to carry out legal sufficiency reviews for Fed-
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400 
eral-aid highway projects shall contain the following provi-
sions: 
‘‘(1) A finding by the Federal Highway Admin-
istration that the State has the capacity to carry out 
legal sufficiency reviews that are equivalent in qual-
ity and consistency to the reviews that would other-
wise be conducted by attorneys employed by such Ad-
ministration. 
‘‘(2) An oversight process, including periodic re-
views conducted by attorneys employed by such Ad-
ministration, to evaluate the quality of the legal suffi-
ciency reviews carried out by the State transportation 
department under the agreement. 
‘‘(3) A requirement for the State transportation 
department to submit a written finding of legal suffi-
ciency to the Federal Highway Administration con-
currently with the request by the State for Federal 
approval of the National Environmental Policy Act of 
1969 (42 U.S.C. 4321 et seq.) document. 
‘‘(4) An opportunity for the Federal Highway 
Administration to conduct an additional legal suffi-
ciency review for any project, for not more than 30 
days, if considered necessary by the Federal Highway 
Administration. 
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‘‘(5) Procedures allowing either party to the 
agreement to terminate the agreement for any reason 
with 30 days notice to the other party. 
‘‘(c) EFFECT OF AGREEMENT.—A legal sufficiency re-
view carried out by a State transportation department 
under this section shall be deemed by the Federal Highway 
Administration to satisfy the requirement for a legal suffi-
ciency review in sections 771.125(b) and 774.7(d) of title 
23, Code of Federal Regulations, or other applicable regula-
tions issued by the Federal Highway Administration.’’. 
(b) CLERICAL AMENDMENT.—The analysis for such 
chapter (as amended by this title) is further amended by 
adding at the end the following: 
‘‘332. State performance of legal sufficiency reviews.’’. 
SEC. 3017. CATEGORICAL EXCLUSIONS. 
(a) IN GENERAL.—The Secretary shall treat an activ-
ity carried out under title 23, United States Code, or project 
within a right-of-way as a class of action categorically ex-
cluded from the requirements relating to environmental as-
sessments or environmental impact statements under sec-
tion 771.117(c) of title 23, Code of Federal Regulations. 
(b) DEFINITIONS.—In this section, the following defi-
nitions apply: 
(1) 
MULTIMODAL
PROJECT.—The 
term 
‘‘multimodal project’’ means a project funded, in 
whole or in part, under title 23, United States Code, 
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or chapter 53 of title 49 of such Code and involving 
the participation of more than one Department of 
Transportation administration or agency. 
(2) PROJECT.—The term ‘‘project’’ means any 
highway 
project, 
public 
transportation 
capital 
project, or multimodal project that requires the ap-
proval of the Secretary. 
SEC. 3018. ENVIRONMENTAL REVIEW PROCESS DEADLINE. 
(a) IN GENERAL.— 
(1) DEADLINE.—Notwithstanding any other pro-
vision of law, the environmental review process for a 
project shall be completed not later than 270 days 
after the date on which the notice of project initiation 
under section 139(e) of title 23, United States Code, 
is published in the Federal Register. 
(2) CONSEQUENCES OF MISSED DEADLINE.—If 
the environmental review process for a project is not 
completed in accordance with paragraph (1)— 
(A) the project shall be considered to have 
no significant impact to the human environment 
for purposes of the National Environmental Pol-
icy Act of 1969 (42 U.S.C. 4321 et seq.); and 
(B) that classification shall be considered to 
be a final agency action. 
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(b) APPEAL.—In this section, the following rules shall 
apply: 
(1) There shall be a single administrative appeal 
for the environmental review process carried out pur-
suant to this section. 
(2) Upon resolution of the administrative ap-
peal, judicial review of the final agency decision after 
exhaustion of administrative remedies shall lie with 
the United States Court of Appeals for the District of 
Columbia Circuit. 
(3) An appeal to the court specified in para-
graph (2) shall be based only on the administrative 
record. 
(4) After an agency has made a final decision 
with respect to the environmental review process car-
ried out under this section, that decision shall be ef-
fective during the course of any subsequent appeal to 
a court specified in paragraph (2). 
(5) All civil actions arising under this section 
shall be considered to arise under the laws of the 
United States. 
(c) DEFINITIONS.—In this section, the following defi-
nitions apply: 
(1) ENVIRONMENTAL REVIEW PROCESS.— 
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404 
(A) IN
GENERAL.—The term ‘‘environ-
mental review process’’ means the process for 
preparing for a project an environmental impact 
statement, environmental assessment, categorical 
exclusion, or other document prepared under the 
National Environmental Policy Act of 1969 (42 
U.S.C. 4321 et seq.). 
(B) INCLUSIONS.—The term ‘‘environmental 
review process’’ includes the process for and com-
pletion of any environmental permit, approval, 
review, or study required for a project under any 
Federal law other than the National Environ-
mental Policy Act of 1969 (42 U.S.C. 4321 et 
seq.). 
(2) LEAD
AGENCY.—The term ‘‘lead agency’’ 
means the Department of Transportation and, if ap-
plicable, any State or local governmental entity serv-
ing as a joint lead agency pursuant to this section. 
(3) 
MULTIMODAL
PROJECT.—The 
term 
‘‘multimodal project’’ means a project funded, in 
whole or in part, under title 23, United States Code, 
or chapter 53 of title 49 of such Code and involving 
the participation of more than one Department of 
Transportation administration or agency. 
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405 
(4) PROJECT.—The term ‘‘project’’ means any 
highway 
project, 
public 
transportation 
capital 
project, or multimodal project that requires the ap-
proval of the Secretary. 
SEC. 3019. RELOCATION ASSISTANCE. 
(a) ALTERNATIVE RELOCATION PAYMENT PROCESS.— 
(1) ESTABLISHMENT.—For the purpose of identi-
fying improvements in the timeliness of providing re-
location assistance to persons displaced as a result of 
Federal or federally-assisted programs and projects, 
the Secretary shall establish an alternative relocation 
payment process under which payments to displaced 
persons eligible for relocation assistance pursuant to 
the Uniform Relocation Assistance and Real Property 
Acquisition Policies Act of 1970 (42 U.S.C. 4601 et 
seq.), are calculated based on reasonable estimates 
and paid in advance of the physical displacement of 
the displaced person. 
(2) PAYMENTS.— 
(A) TIMING OF PAYMENTS.—Relocation as-
sistance payments may be provided to the dis-
placed person at the same time as payments of 
just compensation for real property acquired for 
a program or project of the State. 
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(B) COMBINED
PAYMENT.—Payments for 
relocation and just compensation may be com-
bined into a single unallocated amount. 
(3) CONDITIONS
FOR
STATE
USE
OF
ALTER-
NATIVE PROCESS.— 
(A) IN GENERAL.—After public notice and 
an opportunity to comment, the Secretary shall 
adopt criteria for States to use the alternative 
relocation payment process established by the 
Secretary. 
(B) MEMORANDUM
OF
AGREEMENT.—In 
order to use the alternative relocation payment 
process, a State shall enter into a memorandum 
of agreement with the Secretary that includes 
provisions relating to— 
(i) the selection of projects or programs 
within the State to which the alternative re-
location payment process will be applied; 
(ii) program and project-level moni-
toring; 
(iii) performance measurement; 
(iv) reporting requirements; and 
(v) the circumstances under which the 
Secretary may terminate or suspend the au-
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407 
thority of the State to use the alternative re-
location payment process. 
(C) REQUIRED
INFORMATION.—A State 
may use the alternative relocation payment proc-
ess only after the displaced persons affected by a 
program or project— 
(i) are informed in writing— 
(I) that the relocation payments 
the displaced persons receive under the 
alternative relocation payment process 
may be higher or lower than the 
amount that the displaced persons 
would have received under the stand-
ard relocation assistance process; and 
(II) of their right not to partici-
pate in the alternative relocation pay-
ment process; and 
(ii) agree in writing to the alternative 
relocation payment process. 
(D) ELECTION NOT TO PARTICIPATE.—The 
displacing agency shall provide any displaced 
person who elects not to participate in the alter-
native relocation payment process with reloca-
tion assistance in accordance with the Uniform 
Relocation Assistance and Real Property Acqui-
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408 
sition Policies Act of 1970 (42 U.S.C. 4601 et 
seq.). 
(4) 
PROTECTIONS
AGAINST
INCONSISTENT 
TREATMENT.—If other Federal agencies plan displace-
ments in or adjacent to an area of a project using the 
alternative relocation payment process within the 
same time period as a project acquisition and reloca-
tion action of the project, the Secretary shall adopt 
measures to protect against inconsistent treatment of 
displaced persons. Such measures may include a de-
termination that the alternative relocation payment 
process authority may not be used on a specific 
project. 
(5) REPORT.— 
(A) IN GENERAL.—The Secretary shall sub-
mit to Congress an annual report on the imple-
mentation of the alternative relocation payment 
process. 
(B) CONTENTS.—The report shall include 
an evaluation of the merits of the alternative re-
location payment process, including the effects of 
the alternative relocation payment process on— 
(i) displaced persons and the protec-
tions afforded to such persons by the Uni-
form Relocation Assistance and Real Prop-
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409 
erty Acquisition Policies Act of 1970 (42 
U.S.C. 4601 et seq.); 
(ii) the efficiency of the delivery of 
Federal-aid highway projects and overall ef-
fects on the Federal-aid highway program; 
and 
(iii) the achievement of the purposes of 
the Uniform Relocation Assistance and Real 
Property Acquisition Policies Act of 1970 
(42 U.S.C. 4601 et seq.). 
(6) LIMITATION.—The alternative relocation 
payment process under this section may be used only 
on projects funded under title 23, United States Code, 
in cases in which the funds are administered by the 
Federal Highway Administration. 
(7) 
NEPA 
APPLICABILITY.—Notwithstanding 
any other provision of law, the use of the alternative 
relocation payment process established under this sec-
tion on a project funded under title 23, United States 
Code, and administered by the Federal Highway Ad-
ministration is not a major Federal action requiring 
analysis or approval under the National Environ-
mental Policy Act of 1969 (42 U.S.C. 4321 et seq.). 
(b) UNIFORM RELOCATION ASSISTANCE ACT AMEND-
MENTS.— 
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(1) MOVING AND RELATED EXPENSES.—Section 
202 of the Uniform Relocation Assistance and Real 
Property Acquisition Policies Act of 1970 (42 U.S.C. 
4622) is amended— 
(A) 
in 
subsection 
(a)(4) 
by 
striking 
‘‘$10,000’’ and inserting ‘‘$25,000, as adjusted 
by regulation, in accordance with section 
213(d)’’; and 
(B) in the second sentence of subsection (c) 
by striking ‘‘$20,000’’ and inserting ‘‘$40,000, as 
adjusted by regulation, in accordance with sec-
tion 213(d)’’. 
(2) 
REPLACEMENT
HOUSING
FOR
HOME-
OWNERS.—The first sentence of section 203(a)(1) of 
the Uniform Relocation Assistance and Real Property 
Acquisition 
Policies 
Act 
of 
1970 
(42 
U.S.C. 
4623(a)(1)) is amended by— 
(A) 
striking 
‘‘$22,500’’ 
and 
inserting 
‘‘$31,000, as adjusted by regulation, in accord-
ance with section 213(d),’’; and 
(B) striking ‘‘one hundred and eighty days 
prior to’’ and inserting ‘‘90 days before’’. 
(3) REPLACEMENT HOUSING FOR TENANTS AND 
CERTAIN OTHERS.—Section 204 of the Uniform Relo-
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cation Assistance and Real Property Acquisition Poli-
cies Act of 1970 (42 U.S.C. 4624) is amended— 
(A) in the second sentence of subsection (a) 
by striking ‘‘$5,250’’ and inserting ‘‘$7,200, as 
adjusted by regulation, in accordance with sec-
tion 213(d)’’; and 
(B) in the second sentence of subsection (b) 
by striking ‘‘, except’’ and all that follows 
through the end of the subsection and inserting 
a period. 
(4) DUTIES OF LEAD AGENCY.—Section 213 of 
the Uniform Relocation Assistance and Real Property 
Acquisition Policies Act of 1970 (42 U.S.C. 4633) is 
amended— 
(A) in subsection (b)— 
(i) in paragraph (2) by striking 
‘‘and’’; 
(ii) in paragraph (3) by striking the 
period and inserting ‘‘; and’’; and 
(iii) by adding at the end the fol-
lowing: 
‘‘(4) that each Federal agency that has programs 
or projects requiring the acquisition of real property 
or causing a displacement from real property subject 
to the provisions of this Act shall provide to the lead 
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412 
agency an annual summary report that describes the 
activities conducted by the Federal agency.’’; and 
(B) by adding at the end the following: 
‘‘(d) ADJUSTMENT OF PAYMENTS.—The head of the 
lead agency may adjust, by regulation, the amounts of relo-
cation payments provided under sections 202(a)(4), 202(c), 
203(a), and 204(a) if the head of the lead agency determines 
that cost of living, inflation, or other factors indicate that 
the payments should be adjusted to meet the policy objec-
tives of this Act.’’. 
(5) AGENCY COORDINATION.—Title II of the Uni-
form Relocation Assistance and Real Property Acqui-
sition Policies Act of 1970 (42 U.S.C. 4601 et seq.) 
is amended by inserting after section 213 (42 U.S.C. 
4633) the following: 
‘‘SEC. 214. AGENCY COORDINATION. 
‘‘(a) AGENCY CAPACITY.—Each Federal agency re-
sponsible for funding or carrying out relocation and acqui-
sition activities shall have adequately trained personnel 
and such other resources as are necessary to manage and 
oversee the relocation and acquisition program of the Fed-
eral agency in accordance with this Act. 
‘‘(b) INTERAGENCY AGREEMENTS.—Not later than 1 
year after the date of the enactment of this section, each 
Federal agency responsible for funding relocation and ac-
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413 
quisition activities (other than the agency serving as the 
lead agency) shall enter into a memorandum of under-
standing with the lead agency that— 
‘‘(1) provides for periodic training of the per-
sonnel of the Federal agency, which in the case of a 
Federal agency that provides Federal financial assist-
ance, may include personnel of any displacing agency 
that receives Federal financial assistance; 
‘‘(2) addresses ways in which the lead agency 
may provide assistance and coordination to the Fed-
eral agency relating to compliance with this Act on 
a program or project basis; and 
‘‘(3) addresses the funding of the training, assist-
ance, and coordination activities provided by the lead 
agency, in accordance with subsection (c). 
‘‘(c) INTERAGENCY PAYMENTS.— 
‘‘(1) IN GENERAL.—For the fiscal year that be-
gins 1 year after the date of the enactment of this sec-
tion, and each fiscal year thereafter, each Federal 
agency responsible for funding relocation and acquisi-
tion activities (other than the agency serving as the 
lead agency) shall transfer to the lead agency for the 
fiscal year, such funds as are necessary, but not less 
than $35,000, to support the training, assistance, and 
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414 
coordination activities of the lead agency described in 
subsection (b). 
‘‘(2) INCLUDED COSTS.—The cost to a Federal 
agency of providing the funds described in paragraph 
(1) shall be included as part of the cost of 1 or more 
programs or projects undertaken by the Federal agen-
cy or with Federal financial assistance that result in 
the displacement of persons or the acquisition of real 
property.’’. 
(c) COOPERATION WITH FEDERAL AGENCIES.—Sec-
tion 308(a) is amended to read as follows: 
‘‘(a) AUTHORIZED ACTIVITIES.— 
‘‘(1) IN GENERAL.—The Secretary may perform, 
by contract or otherwise, authorized engineering or 
other services in connection with the survey, construc-
tion, maintenance, or improvement of highways for 
other Federal agencies, cooperating foreign countries, 
and State cooperating agencies. 
‘‘(2) INCLUSIONS.—Services authorized under 
paragraph (1) may include activities authorized 
under section 214 of the Uniform Relocation Assist-
ance and Real Property Acquisition Policies Act of 
1970 (42 U.S.C. 4601 et seq.). 
‘‘(3) 
REIMBURSEMENT.—Reimbursement 
for 
services carried out under this subsection, including 
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415 
depreciation on engineering and road-building equip-
ment, shall be credited to the applicable appropria-
tion.’’. 
TITLE IV—TRANSPORTATION 
PLANNING 
SEC. 4001. TRANSPORTATION PLANNING. 
(a) IN GENERAL.—Subtitle III of title 49, United 
States Code, is amended by inserting after chapter 51 the 
following: 
‘‘CHAPTER 52—TRANSPORTATION 
PLANNING 
‘‘Sec. 
‘‘5201. Policy. 
‘‘5202. Definitions. 
‘‘5203. Metropolitan transportation planning. 
‘‘5204. Statewide transportation planning. 
‘‘5205. National strategic transportation plan. 
‘‘5206. National performance management system. 
‘‘§ 5201. Policy 
‘‘(a) IN GENERAL.—It is in the national interest to— 
‘‘(1) encourage and promote the safe and effi-
cient management, operation, and development of sur-
face transportation systems that will serve the mobil-
ity needs of people and freight and foster economic 
growth and development within and between States 
and urbanized areas, while minimizing transpor-
tation-related fuel consumption and air pollution 
through metropolitan and statewide transportation 
planning processes identified in this chapter; and 
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