816 
‘‘(c) APPORTIONMENT AND TRANSFERS.— 
‘‘(1) FORMULA.—The Secretary shall apportion 
amounts made available to carry out this section as 
follows: 
‘‘(A) LARGE
URBANIZED
AREAS.—Sixty 
percent of the funds shall be apportioned 
among designated recipients for urbanized 
areas with a population of 200,000 or more in-
dividuals, as determined by the Bureau of the 
Census, in the ratio that— 
‘‘(i) the number of seniors and indi-
viduals with disabilities in each such ur-
banized area; bears to 
‘‘(ii) the number of seniors and indi-
viduals with disabilities in all such urban-
ized areas. 
‘‘(B) SMALL URBANIZED AREAS.—Twenty 
percent of the funds shall be apportioned 
among the States in the ratio that— 
‘‘(i) the number of seniors and indi-
viduals with disabilities in urbanized areas 
with a population of fewer than 200,000 
individuals, as determined by the Bureau 
of the Census, in each State; bears to 
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of fewer than 200,000 individuals, as de-
termined by the Bureau of the Census; and 
‘‘(iii) funds apportioned under para-
graph (1)(C) shall be used for projects 
serving other than urbanized areas. 
‘‘(B) EXCEPTIONS.—A State may use 
funds apportioned to the State under subpara-
graph (B) or (C) of paragraph (1)— 
‘‘(i) for a project serving an area 
other than an area specified in subpara-
graph (A)(ii) or (A)(iii), as the case may 
be, if the Governor of the State certifies 
that all of the objectives of this section are 
being met in the area specified in subpara-
graph (A)(ii) or (A)(iii); or 
‘‘(ii) for a project anywhere in the 
State, if the State has established a state-
wide program for meeting the objectives of 
this section. 
‘‘(C) LIMITED TO ELIGIBLE PROJECTS.— 
Any funds transferred pursuant to subpara-
graph (B) shall be made available only for eligi-
ble projects selected under this section. 
‘‘(D) CONSULTATION.—A recipient may 
transfer an amount under subparagraph (B) 
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only after consulting with responsible local offi-
cials, publicly owned operators of public trans-
portation, and nonprofit providers in the area 
for which the amount was originally appor-
tioned. 
‘‘(d) GOVERNMENT SHARE OF COSTS.— 
‘‘(1) CAPITAL PROJECTS.—A grant for a capital 
project under this section shall be in an amount 
equal to 80 percent of the net capital costs of the 
project, as determined by the Secretary. 
‘‘(2) OPERATING ASSISTANCE.—A grant made 
under this section for operating assistance may not 
exceed an amount equal to 50 percent of the net op-
erating costs of the project, as determined by the 
Secretary. 
‘‘(3) REMAINDER OF NET COSTS.—The remain-
der of the net costs of a project carried out under 
this section— 
‘‘(A) may be provided from an undistrib-
uted cash surplus, a replacement or deprecia-
tion cash fund or reserve, a service agreement 
with a State or local social service agency or a 
private social service organization, or new cap-
ital; and 
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‘‘(B) may be derived from amounts appro-
priated or otherwise made available— 
‘‘(i) to a department or agency of the 
Government (other than the Department of 
Transportation) that are eligible to be ex-
pended for transportation; or 
‘‘(ii) to carry out the Federal lands 
highways program under section 204 of 
title 23, United States Code. 
‘‘(4) USE OF CERTAIN FUNDS.—For purposes 
of paragraph (3)(B)(i), the prohibition under section 
403(a)(5)(C)(vii) of the Social Security Act (42 
U.S.C. 603(a)(5)(C)(vii)) on the use of grant funds 
for matching requirements shall not apply to Fed-
eral or State funds to be used for transportation 
purposes. 
‘‘(e) GRANT REQUIREMENTS.— 
‘‘(1) IN GENERAL.—A grant under this section 
shall be subject to the same requirements as a grant 
under section 5307, to the extent the Secretary de-
termines appropriate. 
‘‘(2) CERTIFICATION REQUIREMENTS.— 
‘‘(A) PROJECT SELECTION AND PLAN DE-
VELOPMENT.—Before receiving a grant under 
this section, each recipient shall certify that— 
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‘‘(i) the projects selected by the recipi-
ent are included in a locally developed, co-
ordinated public transit-human services 
transportation plan; 
‘‘(ii) the plan described in clause (i) 
was developed and approved through a 
process that included participation by sen-
iors, individuals with disabilities, represent-
atives of public, private, and nonprofit 
transportation and human services pro-
viders, and other members of the public; 
and 
‘‘(iii) to the maximum extent feasible, 
the services funded under this section will 
be coordinated with transportation services 
assisted by other Federal departments and 
agencies, including any transportation ac-
tivities carried out by a recipient of a 
grant from the Department of Health and 
Human Services. 
‘‘(B) ALLOCATIONS TO SUBRECIPIENTS.— 
If a recipient allocates funds received under this 
section to subrecipients, the recipient shall cer-
tify that the funds are allocated on a fair and 
equitable basis. 
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‘‘(f) COMPETITIVE PROCESS FOR GRANTS TO SUB-
RECIPIENTS.— 
‘‘(1) AREAWIDE SOLICITATIONS.—A recipient of 
funds apportioned under subsection (c)(1)(A) may 
conduct, in cooperation with the appropriate metro-
politan planning organization, an areawide solicita-
tion for applications for grants under this section. 
‘‘(2) STATEWIDE SOLICITATIONS.—A recipient 
of funds apportioned under subparagraph (B) or (C) 
of subsection (c)(1) may conduct a statewide solici-
tation for applications for grants under this section. 
‘‘(3) APPLICATION.—If the recipient elects to 
engage in a competitive process, a recipient or sub-
recipient seeking to receive a grant from funds ap-
portioned under subsection (c) shall submit to the 
recipient making the election an application in such 
form and in accordance with such requirements as 
the recipient making the election shall establish. 
‘‘(g) TRANSFERS OF FACILITIES AND EQUIPMENT.— 
A recipient may transfer a facility or equipment acquired 
using a grant under this section to any other recipient eli-
gible to receive assistance under this chapter, if— 
‘‘(1) the recipient in possession of the facility or 
equipment consents to the transfer; and 
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‘‘(2) the facility or equipment will continue to 
be used as required under this section. 
‘‘(h) PERFORMANCE MEASURES.— 
‘‘(1) IN GENERAL.—Not later than 1 year after 
the date of enactment of the Federal Public Trans-
portation Act of 2012, the Secretary shall issue a 
final rule to establish performance measures for 
grants under this section. 
‘‘(2) MEASURES.—The performance measures 
established under paragraph (1) shall require the 
collection of quantitative and qualitative information, 
as available, concerning— 
‘‘(A) modifications to the geographic cov-
erage of transportation service, the quality of 
transportation service, or service times that in-
crease the availability of transportation services 
for seniors and individuals with disabilities; 
‘‘(B) ridership; 
‘‘(C) accessibility improvements; and 
‘‘(D) other measures, as the Secretary de-
termines is appropriate. 
‘‘(3) TARGETS.—Not later than 3 months after 
the date on which the Secretary issues a final rule 
under paragraph (1), and each fiscal year thereafter, 
each recipient that receives Federal financial assist-
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ance under this section shall establish performance 
targets in relation to the performance measures es-
tablished by the Secretary. 
‘‘(4) REPORTS.—Each recipient of Federal fi-
nancial assistance under this section shall submit to 
the Secretary an annual report that describes— 
‘‘(A) the progress of the recipient toward 
meeting the performance targets established 
under paragraph (3) for that fiscal year; and 
‘‘(B) the performance targets established 
by the recipient for the subsequent fiscal year.’’. 
SEC. 20012. FORMULA GRANTS FOR OTHER THAN URBAN-
IZED AREAS. 
(a) IN GENERAL.—Section 5311 of title 49, United 
States Code, is amended to read as follows: 
‘‘§ 5311. Formula grants for other than urbanized 
areas 
‘‘(a) DEFINITIONS.—As used in this section, the fol-
lowing definitions shall apply: 
‘‘(1) RECIPIENT.—The term ‘recipient’ means a 
State or Indian tribe that receives a Federal transit 
program grant directly from the Government. 
‘‘(2) SUBRECIPIENT.—The term ‘subrecipient’ 
means a State or local governmental authority, a 
nonprofit organization, or an operator of public 
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transportation or intercity bus service that receives 
Federal transit program grant funds indirectly 
through a recipient. 
‘‘(b) GENERAL AUTHORITY.— 
‘‘(1) GRANTS
AUTHORIZED.—Except as pro-
vided by paragraph (2), the Secretary may award 
grants under this section to recipients located in 
areas other than urbanized areas for— 
‘‘(A) planning, provided that a grant under 
this section for planning activities shall be in 
addition to funding awarded to a State under 
section 5305 for planning activities that are di-
rected specifically at the needs of other than ur-
banized areas in the State; 
‘‘(B) public transportation capital projects; 
‘‘(C) operating costs of equipment and fa-
cilities for use in public transportation; and 
‘‘(D) the acquisition of public transpor-
tation services, including service agreements 
with private providers of public transportation 
service. 
‘‘(2) STATE PROGRAM.— 
‘‘(A) IN GENERAL.—A project eligible for a 
grant under this section shall be included in a 
State program for public transportation service 
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projects, including agreements with private pro-
viders of public transportation service. 
‘‘(B) SUBMISSION TO SECRETARY.—Each 
State shall submit to the Secretary annually the 
program described in subparagraph (A). 
‘‘(C) APPROVAL.—The Secretary may not 
approve the program unless the Secretary de-
termines that— 
‘‘(i) the program provides a fair dis-
tribution of amounts in the State, includ-
ing Indian reservations; and 
‘‘(ii) the program provides the max-
imum feasible coordination of public trans-
portation service assisted under this sec-
tion with transportation service assisted by 
other Federal sources. 
‘‘(3) RURAL
TRANSPORTATION
ASSISTANCE 
PROGRAM.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
carry out a rural transportation assistance pro-
gram in other than urbanized areas. 
‘‘(B) GRANTS AND CONTRACTS.—In car-
rying out this paragraph, the Secretary may use 
not more than 2 percent of the amount made 
available under section 5338(a)(2)(F) to make 
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grants and contracts for transportation re-
search, technical assistance, training, and re-
lated support services in other than urbanized 
areas. 
‘‘(C) PROJECTS OF A NATIONAL SCOPE.— 
Not more than 15 percent of the amounts avail-
able under subparagraph (B) may be used by 
the Secretary to carry out projects of a national 
scope, with the remaining balance provided to 
the States. 
‘‘(4) DATA COLLECTION.—Each recipient under 
this section shall submit an annual report to the 
Secretary containing information on capital invest-
ment, operations, and service provided with funds 
received under this section, including— 
‘‘(A) total annual revenue; 
‘‘(B) sources of revenue; 
‘‘(C) total annual operating costs; 
‘‘(D) total annual capital costs; 
‘‘(E) fleet size and type, and related facili-
ties; 
‘‘(F) vehicle revenue miles; and 
‘‘(G) ridership. 
‘‘(c) APPORTIONMENTS.— 
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‘‘(1) PUBLIC TRANSPORTATION ON INDIAN RES-
ERVATIONS.—Of the amounts made available or ap-
propriated for each fiscal year pursuant to section 
5338(a)(2)(F) to carry out this paragraph, the fol-
lowing amounts shall be apportioned each fiscal year 
for grants to Indian tribes for any purpose eligible 
under this section, under such terms and conditions 
as may be established by the Secretary: 
‘‘(A) $10,000,000 shall be distributed on a 
competitive basis by the Secretary. 
‘‘(B) $20,000,000 shall be apportioned as 
formula grants, as provided in subsection (k). 
‘‘(2) 
APPALACHIAN
DEVELOPMENT
PUBLIC 
TRANSPORTATION ASSISTANCE PROGRAM.— 
‘‘(A) DEFINITIONS.—In this paragraph— 
‘‘(i) the term ‘Appalachian region’ has 
the same meaning as in section 14102 of 
title 40; and 
‘‘(ii) the term ‘eligible recipient’ 
means a State that participates in a pro-
gram established under subtitle IV of title 
40. 
‘‘(B) IN
GENERAL.—The Secretary shall 
carry out a public transportation assistance 
program in the Appalachian region. 
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‘‘(C) APPORTIONMENT.—Of amounts made 
available or appropriated for each fiscal year 
under section 5338(a)(2)(F) to carry out this 
paragraph, the Secretary shall apportion funds 
to eligible recipients for any purpose eligible 
under this section, based on the guidelines es-
tablished under section 9.5(b) of the Appa-
lachian Regional Commission Code. 
‘‘(D) SPECIAL RULE.—An eligible recipient 
may use amounts that cannot be used for oper-
ating expenses under this paragraph for a high-
way project if— 
‘‘(i) that use is approved, in writing, 
by the eligible recipient after appropriate 
notice and an opportunity for comment 
and appeal are provided to affected public 
transportation providers; and 
‘‘(ii) the eligible recipient, in approv-
ing the use of amounts under this subpara-
graph, determines that the local transit 
needs are being addressed. 
‘‘(3) REMAINING AMOUNTS.— 
‘‘(A) IN
GENERAL.—The amounts made 
available or appropriated for each fiscal year 
pursuant to section 5338(a)(2)(F) that are not 
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‘‘(I) more than 5 percent of the 
amount apportioned under clause (ii); 
or 
‘‘(II) more than 5 percent of the 
amount apportioned under clause (iii). 
‘‘(d) USE FOR LOCAL TRANSPORTATION SERVICE.— 
A State may use an amount apportioned under this sec-
tion for a project included in a program under subsection 
(b) of this section and eligible for assistance under this 
chapter if the project will provide local transportation 
service, as defined by the Secretary of Transportation, in 
an area other than an urbanized area. 
‘‘(e) USE
FOR ADMINISTRATION, PLANNING, AND 
TECHNICAL ASSISTANCE.—The Secretary may allow a 
State to use not more than 15 percent of the amount ap-
portioned under this section to administer this section and 
provide technical assistance to a subrecipient, including 
project planning, program and management development, 
coordination of public transportation programs, and re-
search the State considers appropriate to promote effec-
tive delivery of public transportation to an area other than 
an urbanized area. 
‘‘(f) INTERCITY BUS TRANSPORTATION.— 
‘‘(1) IN
GENERAL.—A State shall expend at 
least 15 percent of the amount made available in 
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each fiscal year to carry out a program to develop 
and support intercity bus transportation. Eligible ac-
tivities under the program include— 
‘‘(A) planning and marketing for intercity 
bus transportation; 
‘‘(B) capital grants for intercity bus shel-
ters; 
‘‘(C) joint-use stops and depots; 
‘‘(D) operating grants through purchase- 
of-service agreements, user-side subsidies, and 
demonstration projects; and 
‘‘(E) coordinating rural connections be-
tween small public transportation operations 
and intercity bus carriers. 
‘‘(2) CERTIFICATION.—A State does not have 
to comply with paragraph (1) of this subsection in 
a fiscal year in which the Governor of the State cer-
tifies to the Secretary, after consultation with af-
fected intercity bus service providers, that the inter-
city bus service needs of the State are being met 
adequately. 
‘‘(g) ACCESS TO JOBS PROJECTS.— 
‘‘(1) IN
GENERAL.—Amounts made available 
under section 5338(a)(2)(F) may be used to carry 
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out a program to develop and maintain job access 
projects. Eligible projects may include— 
‘‘(A) projects relating to the development 
and maintenance of public transportation serv-
ices designed to transport eligible low-income 
individuals to and from jobs and activities re-
lated to their employment, including— 
‘‘(i) public transportation projects to 
finance planning, capital, and operating 
costs of providing access to jobs under this 
chapter; 
‘‘(ii) promoting public transportation 
by low-income workers, including the use 
of public transportation by workers with 
nontraditional work schedules; 
‘‘(iii) promoting the use of transit 
vouchers for welfare recipients and eligible 
low-income individuals; and 
‘‘(iv) promoting the use of employer- 
provided 
transportation, 
including 
the 
transit pass benefit program under section 
132 of the Internal Revenue Code of 1986; 
and 
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‘‘(B) transportation projects designed to 
support the use of public transportation includ-
ing— 
‘‘(i) enhancements to existing public 
transportation service for workers with 
non-traditional hours or reverse commutes; 
‘‘(ii) guaranteed ride home programs; 
‘‘(iii) bicycle storage facilities; and 
‘‘(iv) projects that otherwise facilitate 
the provision of public transportation serv-
ices to employment opportunities. 
‘‘(2) PROJECT SELECTION AND PLAN DEVELOP-
MENT.—Each grant recipient under this subsection 
shall certify that— 
‘‘(A) the projects selected were included in 
a locally developed, coordinated public transit- 
human services transportation plan; 
‘‘(B) the plan was developed and approved 
through a process that included participation by 
low-income individuals, representatives of pub-
lic, private, and nonprofit transportation and 
human services providers, and the public; 
‘‘(C) to the maximum extent feasible, serv-
ices funded under this subsection are coordi-
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nated with transportation services funded by 
other Federal departments and agencies; and 
‘‘(D) allocations of the grant to subrecipi-
ents, if any, are distributed on a fair and equi-
table basis. 
‘‘(3) COMPETITIVE PROCESS FOR GRANTS TO 
SUBRECIPIENTS.— 
‘‘(A) 
STATEWIDE
SOLICITATIONS.—A 
State may conduct a statewide solicitation for 
applications for grants to recipients and sub-
recipients under this subsection. 
‘‘(B) APPLICATION.—If the State elects to 
engage in a competitive process, recipients and 
subrecipients seeking to receive a grant from 
apportioned funds shall submit to the State an 
application in the form and in accordance with 
such requirements as the State shall establish. 
‘‘(h) GOVERNMENT SHARE OF COSTS.— 
‘‘(1) CAPITAL PROJECTS.— 
‘‘(A) IN GENERAL.—Except as provided by 
subparagraph (B), a grant awarded under this 
section for a capital project or project adminis-
trative expenses shall be for 80 percent of the 
net costs of the project, as determined by the 
Secretary. 
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‘‘(B) EXCEPTION.—A State described in 
section 120(b) of title 23 shall receive a Gov-
ernment share of the net costs in accordance 
with the formula under that section. 
‘‘(2) OPERATING ASSISTANCE.— 
‘‘(A) IN GENERAL.—Except as provided by 
subparagraph (B), a grant made under this 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 
section 120(b) of title 23 shall receive a Gov-
ernment share of the net operating costs equal 
to 62.5 percent of the Government share pro-
vided for under paragraph (1)(B). 
‘‘(3) REMAINDER.—The remainder of net 
project costs— 
‘‘(A) may be provided from an undistrib-
uted cash surplus, a replacement or deprecia-
tion cash fund or reserve, a service agreement 
with a State or local social service agency or a 
private social service organization, or new cap-
ital; 
‘‘(B) may be derived from amounts appro-
priated or otherwise made available to a depart-
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ment or agency of the Government (other than 
the Department of Transportation) that are eli-
gible to be expended for transportation; and 
‘‘(C) notwithstanding subparagraph (B), 
may be derived from amounts made available to 
carry out the Federal lands highway program 
established by section 204 of title 23. 
‘‘(4) USE OF CERTAIN FUNDS.—For purposes 
of paragraph (3)(B), the prohibitions on the use of 
funds for matching requirements under section 
403(a)(5)(C)(vii) of the Social Security Act (42 
U.S.C. 603(a)(5)(C)(vii)) shall not apply to Federal 
or State funds to be used for transportation pur-
poses. 
‘‘(5) 
LIMITATION
ON
OPERATING
ASSIST-
ANCE.—A State carrying out a program of operating 
assistance under this section may not limit the level 
or extent of use of the Government grant for the 
payment of operating expenses. 
‘‘(i) TRANSFER OF FACILITIES AND EQUIPMENT.— 
With the consent of the recipient currently having a facil-
ity or equipment acquired with assistance under this sec-
tion, a State may transfer the facility or equipment to any 
recipient eligible to receive assistance under this chapter 
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840 
if the facility or equipment will continue to be used as 
required under this section. 
‘‘(j) RELATIONSHIP TO OTHER LAWS.— 
‘‘(1) IN GENERAL.—Section 5333(b) applies to 
this section if the Secretary of Labor utilizes a spe-
cial warranty that provides a fair and equitable ar-
rangement to protect the interests of employees. 
‘‘(2) RULE
OF
CONSTRUCTION.—This sub-
section does not affect or discharge a responsibility 
of the Secretary of Transportation under a law of 
the United States. 
‘‘(k) FORMULA GRANTS
FOR PUBLIC TRANSPOR-
TATION ON INDIAN RESERVATIONS.— 
‘‘(1) APPORTIONMENT.— 
‘‘(A) IN GENERAL.—Of the amounts de-
scribed in subsection (c)(1)(B)— 
‘‘(i) 50 percent of the total amount 
shall be apportioned so that each Indian 
tribe providing public transportation serv-
ice shall receive an amount equal to the 
total amount apportioned under this clause 
multiplied by the ratio of the number of 
vehicle revenue miles provided by an In-
dian tribe divided by the total number of 
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vehicle revenue miles provided by all In-
dian tribes, as reported to the Secretary; 
‘‘(ii) 25 percent of the total amount 
shall be apportioned equally among each 
Indian tribe providing at least 200,000 ve-
hicle revenue miles of public transportation 
service annually, as reported to the Sec-
retary; and 
‘‘(iii) 25 percent of the total amount 
shall be apportioned among each Indian 
tribe providing public transportation on 
tribal lands on which more than 1,000 low- 
income individuals reside (as determined 
by the Bureau of the Census) so that each 
Indian tribe shall receive an amount equal 
to the total amount apportioned under this 
clause multiplied by the ratio of the num-
ber of low-income individuals residing on 
an Indian tribe’s lands divided by the total 
number of low-income individuals on tribal 
lands on which more than 1,000 low-in-
come individuals reside. 
‘‘(B) LIMITATION.—No recipient shall re-
ceive more than $300,000 of the amounts ap-
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portioned under subparagraph (A)(iii) in a fis-
cal year. 
‘‘(C) 
REMAINING
AMOUNTS.—Of 
the 
amounts made available under subparagraph 
(A)(iii), any amounts not apportioned under 
that subparagraph shall be allocated among In-
dian tribes receiving less than $300,000 in a 
fiscal year according to the formula specified in 
that clause. 
‘‘(D) 
LOW-INCOME
INDIVIDUALS.—For 
purposes of subparagraph (A)(iii), the term 
‘low-income individual’ means an individual 
whose family income is at or below 100 percent 
of the poverty line, as that term is defined in 
section 673(2) of the Community Services 
Block Grant Act (42 U.S.C. 9902(2)), including 
any revision required by that section, for a fam-
ily of the size involved. 
‘‘(2) NON-TRIBAL SERVICE PROVIDERS.—A re-
cipient that is an Indian tribe may use funds appor-
tioned under this subsection to finance public trans-
portation services provided by a non-tribal provider 
of public transportation that connects residents of 
tribal lands with surrounding communities, improves 
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access to employment or healthcare, or otherwise ad-
dresses the mobility needs of tribal members.’’. 
(b) PILOT PROGRAM
FOR INTERCITY BUS SERV-
ICE.— 
(1) DEFINITIONS.—In this subsection, the fol-
lowing definitions shall apply: 
(A) ELIGIBLE PROJECT.—The term ‘‘eligi-
ble project’’ means an intercity bus project eli-
gible under section 5311(f) of title 49, United 
States Code, as amended by this section, that 
includes both feeder service and an unsub-
sidized segment of the intercity bus network to 
which it connects. 
(B) FEEDER SERVICE.—The term ‘‘feeder 
service’’ means the provision of intercity con-
nections to allow for the coordination of rural 
connections between small public transportation 
systems and providers of intercity bus service. 
(C) INTERCITY BUS SERVICE.—The term 
‘‘intercity bus service’’ means regularly sched-
uled bus service provided by private operators 
for the general public that operates with limited 
stops over fixed routes connecting two or more 
urban areas not in close proximity, that has the 
capacity for transporting baggage carried by 
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passengers, and that makes meaningful connec-
tions with scheduled intercity bus service to 
more distant points, if such service is available. 
(D) SECRETARY.—The term ‘‘Secretary’’ 
means the Secretary of Transportation. 
(2) IN-KIND MATCH.—The Secretary shall es-
tablish a pilot program under which the Secretary 
may allow not more than 20 States using funding 
provided to carry out section 5311(f) of title 49, 
United States Code, as amended by this section, to 
support intercity bus service using the capital costs 
of unsubsidized service provided by a private oper-
ator as in-kind match for an eligible project. 
(3) STUDY.—The Comptroller General of the 
United States shall conduct a study not later than 
1 year after the date of enactment of this Act to de-
termine the efficacy of the pilot program in improv-
ing and expanding intercity bus service and the ef-
fect of the pilot program on public transportation 
providers and the commuting public. 
SEC. 20013. RESEARCH, DEVELOPMENT, DEMONSTRATION, 
AND DEPLOYMENT PROJECTS. 
Section 5312 of title 49, United States Code, is 
amended to read as follows: 
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‘‘§ 5312. Research, development, demonstration, and 
deployment projects 
‘‘(a) RESEARCH, DEVELOPMENT, DEMONSTRATION, 
AND DEPLOYMENT PROJECTS.— 
‘‘(1) IN GENERAL.—The Secretary may make 
grants and enter into contracts, cooperative agree-
ments, and other agreements for research, develop-
ment, demonstration, and deployment projects, and 
evaluation of research and technology of national 
significance to public transportation, that the Sec-
retary determines will improve public transportation. 
‘‘(2) AGREEMENTS.—In order to carry out 
paragraph (1), the Secretary may make grants to 
and enter into contracts, cooperative agreements, 
and other agreements with— 
‘‘(A) departments, agencies, and instru-
mentalities of the Government; 
‘‘(B) State and local governmental entities; 
‘‘(C) providers of public transportation; 
‘‘(D) private or non-profit organizations; 
‘‘(E) institutions of higher education; and 
‘‘(F) technical and community colleges. 
‘‘(3) APPLICATION.— 
‘‘(A) IN
GENERAL.—To receive a grant, 
contract, cooperative agreement, or other agree-
ment under this section, an entity described in 
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paragraph (2) shall submit an application to 
the Secretary. 
‘‘(B) FORM AND CONTENTS.—An applica-
tion under subparagraph (A) shall be in such 
form and contain such information as the Sec-
retary may require, including— 
‘‘(i) a statement of purpose detailing 
the need being addressed; 
‘‘(ii) the short- and long-term goals of 
the project, including opportunities for fu-
ture innovation and development, the po-
tential for deployment, and benefits to rid-
ers and public transportation; and 
‘‘(iii) the short- and long-term funding 
requirements to complete the project and 
any future objectives of the project. 
‘‘(b) RESEARCH.— 
‘‘(1) IN GENERAL.—The Secretary may make a 
grant to or enter into a contract, cooperative agree-
ment, or other agreement under this section with an 
entity described in subsection (a)(2) to carry out a 
public transportation research project that has as its 
ultimate goal the development and deployment of 
new and innovative ideas, practices, and approaches. 
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‘‘(2) PROJECT
ELIGIBILITY.—A public trans-
portation research project that receives assistance 
under paragraph (1) shall focus on— 
‘‘(A) providing more effective and efficient 
public transportation service, including services 
to— 
‘‘(i) seniors; 
‘‘(ii) individuals with disabilities; and 
‘‘(iii) low-income individuals; 
‘‘(B) mobility management and improve-
ments and travel management systems; 
‘‘(C) data and communication system ad-
vancements; 
‘‘(D) system capacity, including— 
‘‘(i) train control; 
‘‘(ii) capacity improvements; and 
‘‘(iii) performance management; 
‘‘(E) capital and operating efficiencies; 
‘‘(F) planning and forecasting modeling 
and simulation; 
‘‘(G) advanced vehicle design; 
‘‘(H) advancements in vehicle technology; 
‘‘(I) asset maintenance and repair systems 
advancement; 
‘‘(J) construction and project management; 
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‘‘(K) alternative fuels; 
‘‘(L) the environment and energy effi-
ciency; 
‘‘(M) safety improvements; or 
‘‘(N) any other area that the Secretary de-
termines is important to advance the interests 
of public transportation. 
‘‘(c) INNOVATION AND DEVELOPMENT.— 
‘‘(1) IN GENERAL.—The Secretary may make a 
grant to or enter into a contract, cooperative agree-
ment, or other agreement under this section with an 
entity described in subsection (a)(2) to carry out a 
public transportation innovation and development 
project that seeks to improve public transportation 
systems nationwide in order to provide more efficient 
and effective delivery of public transportation serv-
ices, including through technology and technological 
capacity improvements. 
‘‘(2) PROJECT
ELIGIBILITY.—A public trans-
portation innovation and development project that 
receives assistance under paragraph (1) shall focus 
on— 
‘‘(A) the development of public transpor-
tation research projects that received assistance 
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under subsection (b) that the Secretary deter-
mines were successful; 
‘‘(B) planning and forecasting modeling 
and simulation; 
‘‘(C) capital and operating efficiencies; 
‘‘(D) advanced vehicle design; 
‘‘(E) advancements in vehicle technology; 
‘‘(F) the environment and energy effi-
ciency; 
‘‘(G) system capacity, including train con-
trol and capacity improvements; or 
‘‘(H) any other area that the Secretary de-
termines is important to advance the interests 
of public transportation. 
‘‘(d) DEMONSTRATION, DEPLOYMENT, AND EVALUA-
TION.— 
‘‘(1) IN GENERAL.—The Secretary may, under 
terms and conditions that the Secretary prescribes, 
make a grant to or enter into a contract, cooperative 
agreement, or other agreement with an entity de-
scribed in paragraph (2) to promote the early de-
ployment and demonstration of innovation in public 
transportation that has broad applicability. 
‘‘(2) PARTICIPANTS.—An entity described in 
this paragraph is— 
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‘‘(A) an entity described in subsection 
(a)(2); or 
‘‘(B) a consortium of entities described in 
subsection (a)(2), including a provider of public 
transportation, that will share the costs, risks, 
and rewards of early deployment and dem-
onstration of innovation. 
‘‘(3) PROJECT ELIGIBILITY.—A project that re-
ceives assistance under paragraph (1) shall seek to 
build on successful research, innovation, and devel-
opment efforts to facilitate— 
‘‘(A) the deployment of research and tech-
nology development resulting from private ef-
forts or federally funded efforts; and 
‘‘(B) the implementation of research and 
technology development to advance the interests 
of public transportation. 
‘‘(4) EVALUATION.—Not later than 2 years 
after the date on which a project receives assistance 
under paragraph (1), the Secretary shall conduct a 
comprehensive evaluation of the success or failure of 
the projects funded under this subsection and any 
plan for broad-based implementation of the innova-
tion promoted by successful projects. 
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‘‘(e) ANNUAL REPORT
ON RESEARCH.—Not later 
than the first Monday in February of each year, the Sec-
retary shall submit to the Committee on Banking, Hous-
ing, and Urban Affairs and the Committee on Appropria-
tions of the Senate and the Committee on Transportation 
and Infrastructure and the Committee on Appropriations 
of the House of Representatives a report that includes— 
‘‘(1) a description of each project that received 
assistance under this section during the preceding 
fiscal year; 
‘‘(2) an evaluation of each project described in 
paragraph (1), including any evaluation conducted 
under subsection (d)(4) for the preceding fiscal year; 
and 
‘‘(3) a proposal for allocations of amounts for 
assistance under this section for the subsequent fis-
cal year. 
‘‘(f) GOVERNMENT SHARE OF COSTS.— 
‘‘(1) IN GENERAL.—The Government share of 
the cost of a project carried out under this section 
shall not exceed 80 percent. 
‘‘(2) NON-GOVERNMENT SHARE.—The non-Gov-
ernment share of the cost of a project carried out 
under this section may be derived from in-kind con-
tributions. 
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‘‘(3) FINANCIAL
BENEFIT.—If the Secretary 
determines that there would be a clear and direct fi-
nancial benefit to an entity under a grant, contract, 
cooperative agreement, or other agreement under 
this section, the Secretary shall establish a Govern-
ment share of the costs of the project to be carried 
out under the grant, contract, cooperative agree-
ment, or other agreement that is consistent with the 
benefit.’’. 
SEC. 20014. TECHNICAL ASSISTANCE AND STANDARDS DE-
VELOPMENT. 
Section 5314 of title 49, United States Code, is 
amended to read as follows: 
‘‘§ 5314. Technical assistance and standards develop-
ment 
‘‘(a) TECHNICAL ASSISTANCE AND STANDARDS DE-
VELOPMENT.— 
‘‘(1) IN GENERAL.—The Secretary may make 
grants and enter into contracts, cooperative agree-
ments, and other agreements (including agreements 
with departments, agencies, and instrumentalities of 
the Government) to carry out activities that the Sec-
retary determines will assist recipients of assistance 
under this chapter to— 
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‘‘(A) more effectively and efficiently pro-
vide public transportation service; 
‘‘(B) administer funds received under this 
chapter in compliance with Federal law; and 
‘‘(C) improve public transportation. 
‘‘(2) ELIGIBLE ACTIVITIES.—The activities car-
ried out under paragraph (1) may include— 
‘‘(A) technical assistance; and 
‘‘(B) the development of standards and 
best practices by the public transportation in-
dustry. 
‘‘(b) TECHNICAL ASSISTANCE CENTERS.— 
‘‘(1) DEFINITION.—In this subsection, the term 
‘eligible entity’ means a nonprofit organization, an 
institution of higher education, or a technical or 
community college. 
‘‘(2) IN GENERAL.—The Secretary may make 
grants to and enter into contracts, cooperative 
agreements, and other agreements with eligible enti-
ties to administer centers to provide technical assist-
ance, including— 
‘‘(A) the development of tools and guid-
ance; and 
‘‘(B) the dissemination of best practices. 
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‘‘(3) COMPETITIVE
PROCESS.—The Secretary 
may make grants and enter into contracts, coopera-
tive agreements, and other agreements under para-
graph (2) through a competitive process on a bien-
nial basis for technical assistance in each of the fol-
lowing categories: 
‘‘(A) Human services transportation co-
ordination, including— 
‘‘(i) transportation for seniors; 
‘‘(ii) transportation for individuals 
with disabilities; and 
‘‘(iii) coordination of local resources 
and programs to assist low-income individ-
uals and veterans in gaining access to 
training and employment opportunities. 
‘‘(B) Transit-oriented development. 
‘‘(C) Transportation equity with regard to 
the impact that transportation planning, invest-
ment, and operations have on low-income and 
minority individuals. 
‘‘(D) Financing mechanisms, including— 
‘‘(i) public-private partnerships; 
‘‘(ii) bonding; and 
‘‘(iii) State and local capacity build-
ing. 
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‘‘(E) Any other activity that the Secretary 
determines is important to advance the inter-
ests of public transportation. 
‘‘(4) EXPERTISE
OF
TECHNICAL
ASSISTANCE 
CENTERS.—In selecting an eligible entity to admin-
ister a center under this subsection, the Secretary 
shall consider— 
‘‘(A) the demonstrated subject matter ex-
pertise of the eligible entity; and 
‘‘(B) the capacity of the eligible entity to 
deliver technical assistance on a regional or na-
tionwide basis. 
‘‘(5) PARTNERSHIPS.—An eligible entity may 
partner with another eligible entity to provide tech-
nical assistance under this subsection. 
‘‘(c) GOVERNMENT SHARE OF COSTS.— 
‘‘(1) IN GENERAL.—The Government share of 
the cost of an activity under this section may not ex-
ceed 80 percent. 
‘‘(2) NON-GOVERNMENT SHARE.—The non-Gov-
ernment share of the cost of an activity under this 
section may be derived from in-kind contributions.’’. 
SEC. 20015. BUS TESTING FACILITIES. 
Section 5318 of title 49, United States Code, is 
amended to read as follows: 
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‘‘§ 5318. Bus testing facilities 
‘‘(a) FACILITIES.—The Secretary shall certify not 
more than 4 comprehensive facilities for testing new bus 
models for maintainability, reliability, safety, performance 
(including braking performance), structural integrity, fuel 
economy, emissions, and noise. 
‘‘(b) COOPERATIVE
AGREEMENT.—The Secretary 
shall enter into a cooperative agreement with not more 
than 4 qualified entities to test public transportation vehi-
cles under subsection (a). 
‘‘(c) FEES.—An entity that operates and maintains 
a facility certified under subsection (a) shall establish and 
collect reasonable fees for the testing of vehicles at the 
facility. The Secretary must approve the fees. 
‘‘(d) AVAILABILITY OF AMOUNTS TO PAY FOR TEST-
ING.— 
‘‘(1) IN GENERAL.—The Secretary shall enter 
into a cooperative agreement with an entity that op-
erates and maintains a facility certified under sub-
section (a), under which 80 percent of the fee for 
testing a vehicle at the facility may be available from 
amounts apportioned to a recipient under section 
5336 or from amounts appropriated to carry out 
this section. 
‘‘(2) PROHIBITION.—An entity that operates 
and maintains a facility described in subsection (a) 
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shall not have a financial interest in the outcome of 
the testing carried out at the facility. 
‘‘(e) ACQUIRING NEW BUS MODELS.—Amounts ap-
propriated or made available under this chapter may be 
obligated or expended to acquire a new bus model only 
if— 
‘‘(1) a bus of that model has been tested at a 
facility described in subsection (a); and 
‘‘(2) the bus tested under paragraph (1) met— 
‘‘(A) performance standards for maintain-
ability, reliability, performance (including brak-
ing performance), structural integrity, fuel 
economy, emissions, and noise, as established 
by the Secretary by rule; and 
‘‘(B) the minimum safety performance 
standards established by the Secretary pursuant 
to section 5329(b).’’. 
SEC. 20016. PUBLIC TRANSPORTATION WORKFORCE DE-
VELOPMENT AND HUMAN RESOURCE PRO-
GRAMS. 
Section 5322 of title 49, United States Code, is 
amended to read as follows: 
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‘‘§ 5322. Public transportation workforce develop-
ment and human resource programs 
‘‘(a) IN GENERAL.—The Secretary may undertake, 
or make grants or enter into contracts for, activities that 
address human resource needs as the needs apply to public 
transportation activities, including activities that— 
‘‘(1) educate and train employees; 
‘‘(2) develop the public transportation work-
force through career outreach and preparation; 
‘‘(3) develop a curriculum for workforce devel-
opment; 
‘‘(4) conduct outreach programs to increase mi-
nority and female employment in public transpor-
tation; 
‘‘(5) conduct research on public transportation 
personnel and training needs; 
‘‘(6) provide training and assistance for minor-
ity business opportunities; 
‘‘(7) advance training relating to maintenance 
of alternative energy, energy efficiency, or zero emis-
sion vehicles and facilities used in public transpor-
tation; and 
‘‘(8) address a current or projected workforce 
shortage in an area that requires technical expertise. 
‘‘(b) FUNDING.— 
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‘‘(1) URBANIZED AREA FORMULA GRANTS.—A 
recipient or subrecipient of funding under section 
5307 shall expend not less than 0.5 percent of such 
funding for activities consistent with subsection (a). 
‘‘(2) WAIVER.—The Secretary may waive the 
requirement under paragraph (1) with respect to a 
recipient or subrecipient if the Secretary determines 
that the recipient or subrecipient— 
‘‘(A) has an adequate workforce develop-
ment program; or 
‘‘(B) has partnered with a local edu-
cational institution in a manner that suffi-
ciently promotes or addresses workforce devel-
opment and human resource needs. 
‘‘(c) INNOVATIVE PUBLIC TRANSPORTATION WORK-
FORCE DEVELOPMENT PROGRAM.— 
‘‘(1) PROGRAM ESTABLISHED.—The Secretary 
shall establish a competitive grant program to assist 
the development of innovative activities eligible for 
assistance under subsection (a). 
‘‘(2) SELECTION OF RECIPIENTS.—To the max-
imum extent feasible, the Secretary shall select re-
cipients that— 
‘‘(A) are geographically diverse; 
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‘‘(B) address the workforce and human re-
sources needs of large public transportation 
providers; 
‘‘(C) address the workforce and human re-
sources needs of small public transportation 
providers; 
‘‘(D) address the workforce and human re-
sources needs of urban public transportation 
providers; 
‘‘(E) address the workforce and human re-
sources needs of rural public transportation 
providers; 
‘‘(F) advance training related to mainte-
nance of alternative energy, energy efficiency, 
or zero emission vehicles and facilities used in 
public transportation; 
‘‘(G) target areas with high rates of unem-
ployment; and 
‘‘(H) address current or projected work-
force shortages in areas that require technical 
expertise. 
‘‘(d) GOVERNMENT’S SHARE OF COSTS.—The Gov-
ernment share of the cost of a project carried out using 
a grant under this section shall be 50 percent. 
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‘‘(e) REPORT.—Not later than 2 years after the date 
of enactment of the Federal Public Transportation Act of 
2012, the Secretary shall submit to the Committee on 
Banking, Housing, and Urban Affairs of the Senate and 
the Committee on Transportation and Infrastructure of 
the House of Representatives a report concerning the 
measurable outcomes and impacts of the programs funded 
under this section.’’. 
SEC. 20017. GENERAL PROVISIONS. 
Section 5323 of title 49, United States Code, is 
amended to read as follows: 
‘‘§ 5323. General provisions 
‘‘(a) INTERESTS IN PROPERTY.— 
‘‘(1) IN GENERAL.—Financial assistance pro-
vided under this chapter to a State or a local gov-
ernmental authority may be used to acquire an in-
terest in, or to buy property of, a private company 
engaged in public transportation, for a capital 
project for property acquired from a private com-
pany engaged in public transportation after July 9, 
1964, or to operate a public transportation facility 
or equipment in competition with, or in addition to, 
transportation service provided by an existing public 
transportation company, only if— 
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‘‘(A) the Secretary determines that such fi-
nancial assistance is essential to a program of 
projects required under sections 5303 and 
5304; 
‘‘(B) the Secretary determines that the 
program provides for the participation of pri-
vate companies engaged in public transpor-
tation to the maximum extent feasible; and 
‘‘(C) just compensation under State or 
local law will be paid to the company for its 
franchise or property. 
‘‘(2) LIMITATION.—A governmental authority 
may not use financial assistance of the United 
States Government to acquire land, equipment, or a 
facility used in public transportation from another 
governmental authority in the same geographic area. 
‘‘(b) RELOCATION AND REAL PROPERTY REQUIRE-
MENTS.—The Uniform Relocation Assistance and Real 
Property Acquisition Policies Act of 1970 (42 U.S.C. 4601 
et seq.) shall apply to financial assistance for capital 
projects under this chapter. 
‘‘(c) CONSIDERATION OF ECONOMIC, SOCIAL, AND 
ENVIRONMENTAL INTERESTS.— 
‘‘(1) COOPERATION
AND
CONSULTATION.—In 
carrying 
out 
the 
goal 
described 
in 
section 
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5301(c)(2), the Secretary shall cooperate and con-
sult with the Secretary of the Interior and the Ad-
ministrator of the Environmental Protection Agency 
on each project that may have a substantial impact 
on the environment. 
‘‘(2) COMPLIANCE WITH NEPA.—The National 
Environmental Policy Act of 1969 (42 U.S.C. 4321 
et seq.) shall apply to financial assistance for capital 
projects under this chapter. 
‘‘(d) CORRIDOR PRESERVATION.— 
‘‘(1) IN GENERAL.—The Secretary may assist a 
recipient in acquiring right-of-way before the com-
pletion of the environmental reviews for any project 
that may use the right-of-way if the acquisition is 
otherwise permitted under Federal law. The Sec-
retary may establish restrictions on such an acquisi-
tion as the Secretary determines to be necessary and 
appropriate. 
‘‘(2) ENVIRONMENTAL REVIEWS.—Right-of-way 
acquired under this subsection may not be developed 
in anticipation of the project until all required envi-
ronmental reviews for the project have been com-
pleted. 
‘‘(e) CONDITION
ON
CHARTER
BUS
TRANSPOR-
TATION SERVICE.— 
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‘‘(1) 
AGREEMENTS.—Financial 
assistance 
under this chapter may be used to buy or operate 
a bus only if the applicant, governmental authority, 
or publicly owned operator that receives the assist-
ance agrees that, except as provided in the agree-
ment, the governmental authority or an operator of 
public transportation for the governmental authority 
will not provide charter bus transportation service 
outside the urban area in which it provides regularly 
scheduled public transportation service. An agree-
ment shall provide for a fair arrangement the Sec-
retary of Transportation considers appropriate to 
ensure that the assistance will not enable a govern-
mental authority or an operator for a governmental 
authority to foreclose a private operator from pro-
viding intercity charter bus service if the private op-
erator can provide the service. 
‘‘(2) VIOLATIONS.— 
‘‘(A) INVESTIGATIONS.—On receiving a 
complaint about a violation of the agreement 
required under paragraph (1), the Secretary 
shall investigate and decide whether a violation 
has occurred. 
‘‘(B) ENFORCEMENT OF AGREEMENTS.—If 
the Secretary decides that a violation has oc-
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curred, the Secretary shall correct the violation 
under terms of the agreement. 
‘‘(C) ADDITIONAL REMEDIES.—In addition 
to any remedy specified in the agreement, the 
Secretary shall bar a recipient or an operator 
from receiving Federal transit assistance in an 
amount the Secretary considers appropriate if 
the Secretary finds a pattern of violations of 
the agreement. 
‘‘(f) BOND
PROCEEDS
ELIGIBLE
FOR
LOCAL 
SHARE.— 
‘‘(1) USE AS LOCAL MATCHING FUNDS.—Not-
withstanding any other provision of law, a recipient 
of assistance under section 5307, 5309, or 5337 
may use the proceeds from the issuance of revenue 
bonds as part of the local matching funds for a cap-
ital project. 
‘‘(2) MAINTENANCE
OF
EFFORT.—The Sec-
retary shall approve of the use of the proceeds from 
the issuance of revenue bonds for the remainder of 
the net project cost only if the Secretary finds that 
the aggregate amount of financial support for public 
transportation in the urbanized area provided by the 
State and affected local governmental authorities 
during the next 3 fiscal years, as programmed in the 
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State transportation improvement program under 
section 5304, is not less than the aggregate amount 
provided by the State and affected local govern-
mental authorities in the urbanized area during the 
preceding 3 fiscal years. 
‘‘(3) DEBT SERVICE RESERVE.—The Secretary 
may reimburse an eligible recipient for deposits of 
bond proceeds in a debt service reserve that the re-
cipient establishes pursuant to section 5302(3)(J) 
from amounts made available to the recipient under 
section 5309. 
‘‘(g) SCHOOLBUS TRANSPORTATION.— 
‘‘(1) 
AGREEMENTS.—Financial 
assistance 
under this chapter may be used for a capital project, 
or to operate public transportation equipment or a 
public transportation facility, only if the applicant 
agrees not to provide schoolbus transportation that 
exclusively transports students and school personnel 
in competition with a private schoolbus operator. 
This subsection does not apply— 
‘‘(A) to an applicant that operates a school 
system in the area to be served and a separate 
and exclusive schoolbus program for the school 
system; and 
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‘‘(B) unless a private schoolbus operator 
can provide adequate transportation that com-
plies with applicable safety standards at reason-
able rates. 
‘‘(2) VIOLATIONS.—If the Secretary finds that 
an applicant, governmental authority, or publicly 
owned operator has violated the agreement required 
under paragraph (1), the Secretary shall bar a re-
cipient or an operator from receiving Federal transit 
assistance in an amount the Secretary considers ap-
propriate. 
‘‘(h) BUYING BUSES UNDER OTHER LAWS.—Sub-
sections (e) and (g) of this section apply to financial as-
sistance to buy a bus under sections 133 and 142 of title 
23. 
‘‘(i) GRANT AND LOAN PROHIBITIONS.—A grant or 
loan may not be used to— 
‘‘(1) pay ordinary governmental or nonproject 
operating expenses; or 
‘‘(2) support a procurement that uses an exclu-
sionary or discriminatory specification. 
‘‘(j) GOVERNMENT SHARE OF COSTS FOR CERTAIN 
PROJECTS.—A grant for a project to be assisted under 
this chapter that involves acquiring vehicle-related equip-
ment or facilities required by the Americans with Disabil-
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868 
ities Act of 1990 (42 U.S.C. 12101 et seq.) or vehicle- 
related equipment or facilities (including clean fuel or al-
ternative fuel vehicle-related equipment or facilities) for 
purposes of complying with or maintaining compliance 
with the Clean Air Act, is for 90 percent of the net project 
cost of such equipment or facilities attributable to compli-
ance with those Acts. The Secretary shall have discretion 
to determine, through practicable administrative proce-
dures, the costs of such equipment or facilities attributable 
to compliance with those Acts. 
‘‘(k) BUY AMERICA.— 
‘‘(1) IN GENERAL.—The Secretary may obligate 
an amount that may be appropriated to carry out 
this chapter for a project only if the steel, iron, and 
manufactured goods used in the project are pro-
duced in the United States. 
‘‘(2) WAIVER.—The Secretary may waive para-
graph (1) of this subsection if the Secretary finds 
that— 
‘‘(A) applying paragraph (1) would be in-
consistent with the public interest; 
‘‘(B) the steel, iron, and goods produced in 
the United States are not produced in a suffi-
cient and reasonably available amount or are 
not of a satisfactory quality; 
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‘‘(C) when procuring rolling stock (includ-
ing train control, communication, and traction 
power equipment) under this chapter— 
‘‘(i) the cost of components and sub-
components produced in the United States 
is more than 60 percent of the cost of all 
components of the rolling stock; and 
‘‘(ii) final assembly of the rolling 
stock has occurred in the United States; or 
‘‘(D) including domestic material will in-
crease the cost of the overall project by more 
than 25 percent. 
‘‘(3) WRITTEN
WAIVER
DETERMINATION
AND 
ANNUAL REPORT.— 
‘‘(A) WRITTEN
DETERMINATION.—Before 
issuing a waiver under paragraph (2), the Sec-
retary shall— 
‘‘(i) publish in the Federal Register 
and make publicly available in an easily 
identifiable location on the website of the 
Department of Transportation a detailed 
written explanation of the waiver deter-
mination; and 
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870 
‘‘(ii) provide the public with a reason-
able period of time for notice and com-
ment. 
‘‘(B) ANNUAL REPORT.—Not later than 1 
year after the date of enactment of the Federal 
Public Transportation Act of 2012, and annu-
ally thereafter, the Secretary shall submit to 
the Committee on Banking, Housing, and 
Urban Affairs of the Senate and the Committee 
on Transportation and Infrastructure of the 
House of Representatives a report listing any 
waiver issued under paragraph (2) during the 
preceding year. 
‘‘(4) LABOR COSTS FOR FINAL ASSEMBLY.—In 
this subsection, labor costs involved in final assembly 
are not included in calculating the cost of compo-
nents. 
‘‘(5) WAIVER PROHIBITED.—The Secretary may 
not make a waiver under paragraph (2) of this sub-
section for goods produced in a foreign country if 
the Secretary, in consultation with the United States 
Trade Representative, decides that the government 
of that foreign country— 
‘‘(A) has an agreement with the United 
States Government under which the Secretary 
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871 
has waived the requirement of this subsection; 
and 
‘‘(B) has violated the agreement by dis-
criminating against goods to which this sub-
section applies that are produced in the United 
States and to which the agreement applies. 
‘‘(6) PENALTY
FOR
MISLABELING
AND
MIS-
REPRESENTATION.—A person is ineligible under 
subpart 9.4 of the Federal Acquisition Regulation, 
or any successor thereto, to receive a contract or 
subcontract made with amounts authorized under 
the Federal Public Transportation Act of 2012 if a 
court or department, agency, or instrumentality of 
the Government decides the person intentionally— 
‘‘(A) affixed a ‘Made in America’ label, or 
a label with an inscription having the same 
meaning, to goods sold in or shipped to the 
United States that are used in a project to 
which this subsection applies but not produced 
in the United States; or 
‘‘(B) represented that goods described in 
subparagraph (A) of this paragraph were pro-
duced in the United States. 
‘‘(7) STATE
REQUIREMENTS.—The Secretary 
may not impose any limitation on assistance pro-
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872 
vided under this chapter that restricts a State from 
imposing more stringent requirements than this sub-
section on the use of articles, materials, and supplies 
mined, produced, or manufactured in foreign coun-
tries in projects carried out with that assistance or 
restricts a recipient of that assistance from com-
plying with those State-imposed requirements. 
‘‘(8) OPPORTUNITY TO CORRECT INADVERTENT 
ERROR.—The Secretary may allow a manufacturer 
or supplier of steel, iron, or manufactured goods to 
correct after bid opening any certification of non-
compliance or failure to properly complete the cer-
tification (but not including failure to sign the cer-
tification) under this subsection if such manufac-
turer or supplier attests under penalty of perjury 
that such manufacturer or supplier submitted an in-
correct certification as a result of an inadvertent or 
clerical error. The burden of establishing inadvertent 
or clerical error is on the manufacturer or supplier. 
‘‘(9) ADMINISTRATIVE
REVIEW.—A party ad-
versely affected by an agency action under this sub-
section shall have the right to seek review under sec-
tion 702 of title 5. 
‘‘(10) APPLICATION TO TRANSIT PROGRAMS.— 
The requirements under this subsection shall apply 
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873 
to all contracts eligible for assistance under this 
chapter for a project carried out within 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 1 con-
tract for the project is funded with amounts made 
available to carry out this chapter. 
‘‘(l) PARTICIPATION OF GOVERNMENTAL AGENCIES 
IN DESIGN AND DELIVERY OF TRANSPORTATION SERV-
ICES.—Governmental agencies and nonprofit organiza-
tions that receive assistance from Government sources 
(other than the Department of Transportation) for non-
emergency transportation services shall— 
‘‘(1) participate and coordinate with recipients 
of assistance under this chapter in the design and 
delivery of transportation services; and 
‘‘(2) be included in the planning for those serv-
ices. 
‘‘(m) RELATIONSHIP TO OTHER LAWS.— 
‘‘(1) FRAUD
AND
FALSE
STATEMENTS.—Sec-
tion 1001 of title 18 applies to a certificate, submis-
sion, or statement provided under this chapter. The 
Secretary may terminate financial assistance under 
this chapter and seek reimbursement directly, or by 
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874 
offsetting amounts, available under this chapter if 
the Secretary determines that a recipient of such fi-
nancial assistance has made a false or fraudulent 
statement or related act in connection with a Fed-
eral public transportation program. 
‘‘(2) 
POLITICAL
ACTIVITIES
OF
NON-
SUPERVISORY EMPLOYEES.—The provision of assist-
ance under this chapter shall not be construed to re-
quire the application of chapter 15 of title 5 to any 
nonsupervisory employee of a public transportation 
system (or any other agency or entity performing re-
lated functions) to whom such chapter does not oth-
erwise apply. 
‘‘(n) PREAWARD AND POSTDELIVERY REVIEW OF 
ROLLING STOCK PURCHASES.—The Secretary shall pre-
scribe regulations requiring a preaward and postdelivery 
review of a grant under this chapter to buy rolling stock 
to ensure compliance with Government motor vehicle safe-
ty requirements, subsection (k) of this section, and bid 
specifications requirements of grant recipients under this 
chapter. Under this subsection, independent inspections 
and review are required, and a manufacturer certification 
is not sufficient. Rolling stock procurements of 20 vehicles 
or fewer made for the purpose of serving other than ur-
banized areas and urbanized areas with populations of 
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875 
200,000 or fewer shall be subject to the same require-
ments as established for procurements of 10 or fewer 
buses under the post-delivery purchaser’s requirements 
certification process under section 663.37(c) of title 49, 
Code of Federal Regulations. 
‘‘(o) SUBMISSION
OF CERTIFICATIONS.—A certifi-
cation required under this chapter and any additional cer-
tification or assurance required by law or regulation to 
be submitted to the Secretary may be consolidated into 
a single document to be submitted annually as part of a 
grant application under this chapter. The Secretary shall 
publish annually a list of all certifications required under 
this chapter with the publication required under section 
5336(d)(2). 
‘‘(p) GRANT REQUIREMENTS.—The grant require-
ments under sections 5307, 5309, and 5337 apply to any 
project under this chapter that receives any assistance or 
other financing under chapter 6 (other than section 609) 
of title 23. 
‘‘(q) ALTERNATIVE FUELING FACILITIES.—A recipi-
ent of assistance under this chapter may allow the inci-
dental use of federally funded alternative fueling facilities 
and equipment by nontransit public entities and private 
entities if— 
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‘‘(1) the incidental use does not interfere with 
the recipient’s public transportation operations; 
‘‘(2) all costs related to the incidental use are 
fully recaptured by the recipient from the nontransit 
public entity or private entity; 
‘‘(3) the recipient uses revenues received from 
the incidental use in excess of costs for planning, 
capital, and operating expenses that are incurred in 
providing public transportation; and 
‘‘(4) private entities pay all applicable excise 
taxes on fuel. 
‘‘(r) FIXED GUIDEWAY CATEGORICAL EXCLUSION.— 
‘‘(1) STUDY.—Not later than 6 months after 
the date of enactment of the Federal Public Trans-
portation Act of 2012, the Secretary shall conduct a 
study to determine the feasibility of providing a cat-
egorical exclusion for streetcar, bus rapid transit, 
and light rail projects located within an existing 
transportation right-of-way from the requirements of 
the National Environmental Policy Act of 1969 (42 
U.S.C. 4321 et seq.) in accordance with the Council 
on Environmental Quality implementing regulations 
under parts 1500 through 1508 of title 40, Code of 
Federal Regulations, or any successor thereto. 
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877 
‘‘(2) FINDINGS AND RULES.—Not later than 1 
year after the date of enactment of the Federal Pub-
lic Transportation Act of 2012, the Secretary shall 
issue findings and, if appropriate, issue rules to pro-
vide categorical exclusions for suitable categories of 
projects.’’. 
SEC. 20018. CONTRACT REQUIREMENTS. 
Section 5325 of title 49, United States Code, is 
amended— 
(1) in subsection (e), by striking paragraph (1) 
and inserting the following: 
‘‘(1) CONTRACTS.—A recipient procuring roll-
ing stock with Government financial assistance 
under this chapter may make a multiyear contract 
to buy the rolling stock and replacement parts under 
which the recipient has an option to buy additional 
rolling stock or replacement parts for— 
‘‘(A) not more than 5 years after the date 
of the original contract for bus procurements; 
and 
‘‘(B) not more than 7 years after the date 
of the original contract for rail procurements, 
provided that such option does not allow for 
significant changes or alterations to the rolling 
stock.’’. 
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878 
(2) in subsection (h), by striking ‘‘Federal Pub-
lic Transportation Act of 2005’’ and inserting ‘‘Fed-
eral Public Transportation Act of 2012’’; 
(3) in subsection (j)(2)(C), by striking ‘‘, in-
cluding the performance reported in the Contractor 
Performance Assessment Reports required under 
section 5309(l)(2)’’; and 
(4) by adding at the end the following: 
‘‘(k) VETERANS EMPLOYMENT.—Recipients and sub-
recipients of Federal financial assistance under this chap-
ter shall ensure that contractors working on a capital 
project funded using such assistance give a hiring pref-
erence to veterans, as defined in section 2108 of title 5, 
who have the requisite skills and abilities to perform the 
construction work required under the contract.’’. 
SEC. 20019. TRANSIT ASSET MANAGEMENT. 
Section 5326 of title 49, United States Code, is 
amended to read as follows: 
‘‘§ 5326. Transit asset management 
‘‘(a) DEFINITIONS.—In this section the following 
definitions shall apply: 
‘‘(1) CAPITAL ASSET.—The term ‘capital asset’ 
includes equipment, rolling stock, infrastructure, and 
facilities for use in public transportation and owned 
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879 
or leased by a recipient or subrecipient of Federal fi-
nancial assistance under this chapter. 
‘‘(2) TRANSIT
ASSET
MANAGEMENT
PLAN.— 
The term ‘transit asset management plan’ means a 
plan developed by a recipient of funding under this 
chapter that— 
‘‘(A) includes, at a minimum, capital asset 
inventories and condition assessments, decision 
support tools, and investment prioritization; 
and 
‘‘(B) the recipient certifies complies with 
the rule issued under this section. 
‘‘(3) TRANSIT ASSET MANAGEMENT SYSTEM.— 
The term ‘transit asset management system’ means 
a strategic and systematic process of operating, 
maintaining, and improving public transportation 
capital assets effectively throughout the life cycle of 
such assets. 
‘‘(b) TRANSIT ASSET MANAGEMENT SYSTEM.—The 
Secretary shall establish and implement a national transit 
asset management system, which shall include— 
‘‘(1) a definition of the term ‘state of good re-
pair’ that includes objective standards for measuring 
the condition of capital assets of recipients, includ-
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880 
ing equipment, rolling stock, infrastructure, and fa-
cilities; 
‘‘(2) a requirement that recipients and sub-
recipients of Federal financial assistance under this 
chapter develop a transit asset management plan; 
‘‘(3) a requirement that each recipient of Fed-
eral financial assistance under this chapter report on 
the condition of the system of the recipient and pro-
vide a description of any change in condition since 
the last report; 
‘‘(4) an analytical process or decision support 
tool for use by public transportation systems that— 
‘‘(A) allows for the estimation of capital 
investment needs of such systems over time; 
and 
‘‘(B) 
assists 
with 
asset 
investment 
prioritization by such systems; and 
‘‘(5) technical assistance to recipients of Fed-
eral financial assistance under this chapter. 
‘‘(c) PERFORMANCE MEASURES AND TARGETS.— 
‘‘(1) IN GENERAL.—Not later than 1 year after 
the date of enactment of the Federal Public Trans-
portation Act of 2012, the Secretary shall issue a 
final rule to establish performance measures based 
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881 
on the state of good repair standards established 
under subsection (b)(1). 
‘‘(2) TARGETS.—Not later than 3 months after 
the date on which the Secretary issues a final rule 
under paragraph (1), and each fiscal year thereafter, 
each recipient of Federal financial assistance under 
this chapter shall establish performance targets in 
relation to the performance measures established by 
the Secretary. 
‘‘(3) REPORTS.—Each recipient of Federal fi-
nancial assistance under this chapter shall submit to 
the Secretary an annual report that describes— 
‘‘(A) the progress of the recipient during 
the fiscal year to which the report relates to-
ward meeting the performance targets estab-
lished under paragraph (2) for that fiscal year; 
and 
‘‘(B) the performance targets established 
by the recipient for the subsequent fiscal year. 
‘‘(d) RULEMAKING.—Not later than 1 year after the 
date of enactment of the Federal Public Transportation 
Act of 2012, the Secretary shall issue a final rule to imple-
ment the transit asset management system described in 
subsection (b).’’. 
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882 
SEC. 20020. PROJECT MANAGEMENT OVERSIGHT. 
Section 5327 of title 49, United States Code, is 
amended— 
(1) in subsection (a)— 
(A) in the matter preceding paragraph (1), 
by striking ‘‘United States’’ and all that follows 
through ‘‘Secretary of Transportation’’ and in-
serting the following: ‘‘Federal financial assist-
ance for a major capital project for public 
transportation under this chapter or any other 
provision of Federal law, a recipient must pre-
pare a project management plan approved by 
the Secretary and carry out the project in ac-
cordance with the project management plan’’; 
and 
(B) in paragraph (12), by striking ‘‘each 
month’’ and inserting ‘‘quarterly’’; 
(2) by striking subsections (c), (d), and (f); 
(3) by inserting after subsection (b) the fol-
lowing: 
‘‘(c) ACCESS TO SITES AND RECORDS.—Each recipi-
ent of Federal financial assistance for public transpor-
tation under this chapter or any other provision of Federal 
law shall provide the Secretary and a contractor the Sec-
retary chooses under section 5338(g) with access to the 
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883 
construction sites and records of the recipient when rea-
sonably necessary.’’; 
(4) by redesignating subsection (e) as sub-
section (d); and 
(5) in subsection (d), as so redesignated— 
(A) in paragraph (1), by striking ‘‘sub-
section (c) of this section’’ and inserting ‘‘sec-
tion 5338(g)’’; and 
(B) in paragraph (2)— 
(i) by striking ‘‘preliminary engineer-
ing stage’’ and inserting ‘‘project develop-
ment phase’’; and 
(ii) by striking ‘‘another stage’’ and 
inserting ‘‘another phase’’. 
SEC. 20021. PUBLIC TRANSPORTATION SAFETY. 
(a) PUBLIC TRANSPORTATION SAFETY PROGRAM.— 
Section 5329 of title 49, United States Code, is amended 
to read as follows: 
‘‘§ 5329. Public transportation safety program 
‘‘(a) DEFINITION.—In this section, the term ‘recipi-
ent’ means a State or local governmental authority, or any 
other operator of a public transportation system, that re-
ceives financial assistance under this chapter. 
‘‘(b) NATIONAL PUBLIC TRANSPORTATION SAFETY 
PLAN.— 
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884 
‘‘(1) IN GENERAL.—The Secretary shall create 
and implement a national public transportation safe-
ty plan to improve the safety of all public transpor-
tation systems that receive funding under this chap-
ter. 
‘‘(2) CONTENTS OF PLAN.—The national public 
transportation safety plan under paragraph (1) shall 
include— 
‘‘(A) safety performance criteria for all 
modes of public transportation; 
‘‘(B) the definition of the term ‘state of 
good repair’ established under section 5326(b); 
‘‘(C) minimum safety performance stand-
ards for public transportation vehicles used in 
revenue operations that— 
‘‘(i) do not apply to rolling stock oth-
erwise regulated by the Secretary or any 
other Federal agency; and 
‘‘(ii) to the extent practicable, take 
into consideration— 
‘‘(I) relevant recommendations of 
the National Transportation Safety 
Board; and 
‘‘(II) recommendations of, and 
best practices standards developed by, 
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the public transportation industry; 
and 
‘‘(D) a public transportation safety certifi-
cation training program, as described in sub-
section (c). 
‘‘(c) PUBLIC TRANSPORTATION SAFETY CERTIFI-
CATION TRAINING PROGRAM.— 
‘‘(1) IN GENERAL.—The Secretary shall estab-
lish a public transportation safety certification train-
ing program for Federal and State employees, or 
other designated personnel, who conduct safety au-
dits and examinations of public transportation sys-
tems and employees of public transportation agen-
cies directly responsible for safety oversight. 
‘‘(2) INTERIM PROVISIONS.—Not later than 90 
days after the date of enactment of the Federal 
Public Transportation Act of 2012, the Secretary 
shall establish interim provisions for the certification 
and training of the personnel described in paragraph 
(1), which shall be in effect until the effective date 
of the final rule issued by the Secretary to imple-
ment this subsection. 
‘‘(d) PUBLIC TRANSPORTATION AGENCY SAFETY 
PLAN.— 
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‘‘(1) IN GENERAL.—Effective 1 year after the 
effective date of a final rule issued by the Secretary 
to carry out this subsection, each recipient shall cer-
tify that the recipient has established a comprehen-
sive agency safety plan that includes, at a min-
imum— 
‘‘(A) a requirement that the board of di-
rectors (or equivalent entity) of the recipient 
approve the agency safety plan and any updates 
to the agency safety plan; 
‘‘(B) methods for identifying and evalu-
ating safety risks throughout all elements of the 
public transportation system of the recipient; 
‘‘(C) strategies to minimize the exposure of 
the public, personnel, and property to hazards 
and unsafe conditions; 
‘‘(D) a process and timeline for conducting 
an annual review and update of the safety plan 
of the recipient; 
‘‘(E) performance targets based on the 
safety performance criteria and state of good 
repair standards established under subpara-
graphs (A) and (B), respectively, of subsection 
(b)(2); 
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‘‘(F) assignment of an adequately trained 
safety officer who reports directly to the general 
manager, president, or equivalent officer of the 
recipient; and 
‘‘(G) a comprehensive staff training pro-
gram for the operations personnel and per-
sonnel directly responsible for safety of the re-
cipient that includes— 
‘‘(i) the completion of a safety train-
ing program; and 
‘‘(ii) continuing safety education and 
training. 
‘‘(2) INTERIM AGENCY SAFETY PLAN.—A sys-
tem safety plan developed pursuant to part 659 of 
title 49, Code of Federal Regulations, as in effect on 
the date of enactment of the Federal Public Trans-
portation Act of 2012, shall remain in effect until 
such time as this subsection takes effect. 
‘‘(e) STATE SAFETY OVERSIGHT PROGRAM.— 
‘‘(1) APPLICABILITY.—This subsection applies 
only to eligible States. 
‘‘(2) DEFINITION.—In this subsection, the term 
‘eligible State’ means a State that has— 
‘‘(A) a rail fixed guideway public transpor-
tation system within the jurisdiction of the 
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State that is not subject to regulation by the 
Federal Railroad Administration; or 
‘‘(B) a rail fixed guideway public transpor-
tation system in the engineering or construction 
phase of development within the jurisdiction of 
the State that will not be subject to regulation 
by the Federal Railroad Administration. 
‘‘(3) IN GENERAL.—In order to obligate funds 
apportioned under section 5338 to carry out this 
chapter, effective 3 years after the date on which a 
final rule under this subsection becomes effective, an 
eligible State shall have in effect a State safety over-
sight program approved by the Secretary under 
which the State— 
‘‘(A) assumes responsibility for overseeing 
rail fixed guideway public transportation safety; 
‘‘(B) adopts and enforces Federal law on 
rail fixed guideway public transportation safety; 
‘‘(C) establishes a State safety oversight 
agency; 
‘‘(D) determines, in consultation with the 
Secretary, an appropriate staffing level for the 
State safety oversight agency that is commensu-
rate with the number, size, and complexity of 
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the rail fixed guideway public transportation 
systems in the eligible State; 
‘‘(E) requires that employees and other 
designated personnel of the eligible State safety 
oversight agency who are responsible for rail 
fixed guideway public transportation safety 
oversight are qualified to perform such func-
tions through appropriate training, including 
successful completion of the public transpor-
tation safety certification training program es-
tablished under subsection (c); and 
‘‘(F) prohibits any public transportation 
agency from providing funds to the State safety 
oversight agency or an entity designated by the 
eligible State as the State safety oversight 
agency under paragraph (4). 
‘‘(4) STATE SAFETY OVERSIGHT AGENCY.— 
‘‘(A) IN
GENERAL.—Each State safety 
oversight program shall establish a State safety 
oversight agency that— 
‘‘(i) is an independent legal entity re-
sponsible for the safety of rail fixed guide-
way public transportation systems; 
‘‘(ii) is financially and legally inde-
pendent from any public transportation en-
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tity that the State safety oversight agency 
oversees; 
‘‘(iii) does not fund, promote, or pro-
vide public transportation services; 
‘‘(iv) does not employ any individual 
who is also responsible for the administra-
tion of public transportation programs; 
‘‘(v) has the authority to review, ap-
prove, oversee, and enforce the implemen-
tation by the rail fixed guideway public 
transportation agency of the public trans-
portation agency safety plan required 
under subsection (d); 
‘‘(vi) has investigative and enforce-
ment authority with respect to the safety 
of rail fixed guideway public transportation 
systems of the eligible State; 
‘‘(vii) audits, at least once triennially, 
the compliance of the rail fixed guideway 
public transportation systems in the eligi-
ble State subject to this subsection with 
the public transportation agency safety 
plan required under subsection (d); and 
‘‘(viii) provides, at least once annu-
ally, a status report on the safety of the 
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rail fixed guideway public transportation 
systems the State safety oversight agency 
oversees to— 
‘‘(I) the Federal Transit Admin-
istration; 
‘‘(II) the Governor of the eligible 
State; and 
‘‘(III) the board of directors, or 
equivalent entity, of any rail fixed 
guideway public transportation system 
that the State safety oversight agency 
oversees. 
‘‘(B) WAIVER.—At the request of an eligi-
ble State, the Secretary may waive clauses (i) 
and (iii) of subparagraph (A) for eligible States 
with 1 or more rail fixed guideway systems in 
revenue operations, design, or construction, 
that— 
‘‘(i) have fewer than 1,000,000 com-
bined actual and projected rail fixed guide-
way revenue miles per year; or 
‘‘(ii) provide fewer than 10,000,000 
combined actual and projected unlinked 
passenger trips per year. 
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‘‘(5) ENFORCEMENT.—Each State safety over-
sight agency shall have the authority to request that 
the Secretary take enforcement actions available 
under subsection (g) against a rail fixed guideway 
public transportation system that is not in compli-
ance with Federal safety laws. 
‘‘(6) PROGRAMS FOR MULTI-STATE RAIL FIXED 
GUIDEWAY PUBLIC TRANSPORTATION SYSTEMS.—An 
eligible State that has within the jurisdiction of the 
eligible State a rail fixed guideway public transpor-
tation system that operates in more than 1 eligible 
State shall— 
‘‘(A) jointly with all other eligible States in 
which the rail fixed guideway public transpor-
tation system operates, ensure uniform safety 
standards and enforcement procedures that 
shall be in compliance with this section, and es-
tablish and implement a State safety oversight 
program approved by the Secretary; or 
‘‘(B) jointly with all other eligible States in 
which the rail fixed guideway public transpor-
tation system operates, designate an entity hav-
ing characteristics consistent with the charac-
teristics described in paragraph (3) to carry out 
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the State safety oversight program approved by 
the Secretary. 
‘‘(7) GRANTS.— 
‘‘(A) IN
GENERAL.—The Secretary may 
make a grant to an eligible State to develop or 
carry out a State safety oversight program, if 
the eligible State submits— 
‘‘(i) a proposal for the establishment 
of a State safety oversight program to the 
Secretary for review and written approval 
before implementing a State safety over-
sight program; and 
‘‘(ii) any amendment to the State 
safety oversight program of the eligible 
State to the Secretary for review not later 
than 60 days before the effective date of 
the amendment. 
‘‘(B) DETERMINATION BY SECRETARY.— 
‘‘(i) IN
GENERAL.—The Secretary 
shall transmit written approval to an eligi-
ble State that submits a State safety over-
sight program, if the Secretary determines 
the State safety oversight program meets 
the requirements of this subsection and the 
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State safety oversight program is adequate 
to promote the purposes of this section. 
‘‘(ii) AMENDMENT.—The Secretary 
shall transmit to an eligible State that sub-
mits an amendment under subparagraph 
(A)(ii) a written determination with re-
spect to the amendment. 
‘‘(iii) NO WRITTEN DECISION.—If an 
eligible State does not receive a written de-
cision from the Secretary with respect to 
an amendment submitted under subpara-
graph (A)(ii) before the end of the 60-day 
period beginning on the date on which the 
eligible State submits the amendment, the 
amendment shall be deemed to be ap-
proved. 
‘‘(iv) DISAPPROVAL.—If the Secretary 
determines that a State safety oversight 
program does not meet the requirements of 
this subsection, the Secretary shall trans-
mit to the eligible State a written expla-
nation and allow the eligible State to mod-
ify and resubmit the State safety oversight 
program for approval. 
‘‘(C) GOVERNMENT SHARE.— 
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‘‘(i) IN GENERAL.—The Government 
share of the reasonable cost of a State 
safety oversight program developed or car-
ried out using a grant under this para-
graph shall be 80 percent. 
‘‘(ii) IN-KIND
CONTRIBUTIONS.—Any 
calculation of the non-Government share of 
a State safety oversight program shall in-
clude in-kind contributions by an eligible 
State. 
‘‘(iii) NON-GOVERNMENT
SHARE.— 
The non-Government share of the cost of 
a State safety oversight program developed 
or carried out using a grant under this 
paragraph may not be met by— 
‘‘(I) any Federal funds; 
‘‘(II) any funds received from a 
public transportation agency; or 
‘‘(III) any revenues earned by a 
public transportation agency. 
‘‘(iv) SAFETY TRAINING PROGRAM.— 
The Secretary may reimburse an eligible 
State or a recipient for the full costs of 
participation in the public transportation 
safety certification training program estab-
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lished under subsection (c) by an employee 
of a State safety oversight agency or a re-
cipient who is directly responsible for safe-
ty oversight. 
‘‘(8) CONTINUAL EVALUATION OF PROGRAM.— 
The Secretary shall continually evaluate the imple-
mentation of a State safety oversight program by a 
State safety oversight agency, on the basis of— 
‘‘(A) reports submitted by the State safety 
oversight agency under paragraph (4)(A)(viii); 
and 
‘‘(B) audits carried out by the Secretary. 
‘‘(9) INADEQUATE PROGRAM.— 
‘‘(A) IN GENERAL.—If the Secretary finds 
that a State safety oversight program approved 
by the Secretary is not being carried out in ac-
cordance with this section or has become inad-
equate to ensure the enforcement of Federal 
safety regulations, the Secretary shall— 
‘‘(i) transmit to the eligible State a 
written explanation of the reason the pro-
gram has become inadequate and inform 
the State of the intention to withhold 
funds, including the amount of funds pro-
posed to be withheld under this section, or 
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withdraw approval of the State safety over-
sight program; and 
‘‘(ii) allow the eligible State a reason-
able period of time to modify the State 
safety oversight program or implementa-
tion of the program and submit an up-
dated proposal for the State safety over-
sight program to the Secretary for ap-
proval. 
‘‘(B) FAILURE TO CORRECT.—If the Sec-
retary determines that a modification by an eli-
gible State of the State safety oversight pro-
gram is not sufficient to ensure the enforcement 
of Federal safety regulations, the Secretary 
may— 
‘‘(i) withhold funds available under 
this section in an amount determined by 
the Secretary; or 
‘‘(ii) provide written notice of with-
drawal of State safety oversight program 
approval. 
‘‘(C) TEMPORARY
OVERSIGHT.—In the 
event the Secretary takes action under subpara-
graph (B)(ii), the Secretary shall provide over-
sight of the rail fixed guideway systems in an 
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‘‘(B) audit the operations of each State 
safety oversight agency at least once triennially; 
and 
‘‘(C) issue rules to carry out this sub-
section. 
‘‘(f) AUTHORITY OF SECRETARY.—In carrying out 
this section, the Secretary may— 
‘‘(1) conduct inspections, investigations, audits, 
examinations, and testing of the equipment, facili-
ties, rolling stock, and operations of the public 
transportation system of a recipient; 
‘‘(2) make reports and issue directives with re-
spect to the safety of the public transportation sys-
tem of a recipient; 
‘‘(3) in conjunction with an accident investiga-
tion or an investigation into a pattern or practice of 
conduct that negatively affects public safety, issue a 
subpoena to, and take the deposition of, any em-
ployee of a recipient or a State safety oversight 
agency, if— 
‘‘(A) before the issuance of the subpoena, 
the Secretary requests a determination by the 
Attorney General of the United States as to 
whether the subpoena will interfere with an on-
going criminal investigation; and 
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‘‘(B) the Attorney General— 
‘‘(i) determines that the subpoena will 
not interfere with an ongoing criminal in-
vestigation; or 
‘‘(ii) fails to make a determination 
under clause (i) before the date that is 30 
days after the date on which the Secretary 
makes a request under subparagraph (A); 
‘‘(4) require the production of documents by, 
and prescribe recordkeeping and reporting require-
ments for, a recipient or a State safety oversight 
agency; 
‘‘(5) investigate public transportation accidents 
and incidents and provide guidance to recipients re-
garding prevention of accidents and incidents; 
‘‘(6) at reasonable times and in a reasonable 
manner, enter and inspect equipment, facilities, roll-
ing stock, operations, and relevant records of the 
public transportation system of a recipient; and 
‘‘(7) issue rules to carry out this section. 
‘‘(g) ENFORCEMENT ACTIONS.— 
‘‘(1) TYPES OF ENFORCEMENT ACTIONS.—The 
Secretary may take enforcement action against a re-
cipient that does not comply with Federal law with 
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respect to the safety of the public transportation 
system, including— 
‘‘(A) issuing directives; 
‘‘(B) requiring more frequent oversight of 
the recipient by a State safety oversight agency 
or the Secretary; 
‘‘(C) imposing more frequent reporting re-
quirements; 
‘‘(D) requiring that any Federal financial 
assistance provided under this chapter be spent 
on correcting safety deficiencies identified by 
the Secretary or the State safety oversight 
agency before such funds are spent on other 
projects; 
‘‘(E) subject to paragraph (2), withholding 
Federal financial assistance, in an amount to be 
determined by the Secretary, from the recipient, 
until such time as the recipient comes into com-
pliance with this section; and 
‘‘(F) subject to paragraph (3), imposing a 
civil penalty, in an amount to be determined by 
the Secretary. 
‘‘(2) USE OR WITHHOLDING OF FUNDS.— 
‘‘(A) IN GENERAL.—The Secretary may re-
quire the use of funds in accordance with para-
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902 
graph (1)(D), or withhold funds under para-
graph (1)(E), only if the Secretary finds that a 
recipient is engaged in a pattern or practice of 
serious safety violations or has otherwise re-
fused to comply with Federal law relating to the 
safety of the public transportation system. 
‘‘(B) NOTICE.—Before withholding funds 
from a recipient under paragraph (1)(E), the 
Secretary shall provide to the recipient— 
‘‘(i) written notice of a violation and 
the amount proposed to be withheld; and 
‘‘(ii) a reasonable period of time with-
in which the recipient may address the vio-
lation or propose and initiate an alter-
native means of compliance that the Sec-
retary determines is acceptable. 
‘‘(C) FAILURE TO ADDRESS.—If the recipi-
ent does not address the violation or propose an 
alternative means of compliance that the Sec-
retary determines is acceptable within the pe-
riod of time specified in the written notice, the 
Secretary may withhold funds under paragraph 
(1)(E). 
‘‘(D) RESTORATION.— 
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903 
‘‘(i) 
CORRECTION.—The 
recipient 
shall address any violation to the satisfac-
tion of the Secretary prior to the Secretary 
restoring funds withheld under paragraph 
(1)(E). 
‘‘(ii) AVAILABILITY
AND
REALLOCA-
TION.—Any funds withheld under para-
graph (1)(E) shall remain available for res-
toration to the recipient until the end of 
the first fiscal year after the fiscal year in 
which the funds were withheld, after which 
time the funds shall be available to the 
Secretary for allocation to other eligible re-
cipients. 
‘‘(E) NOTIFICATION.—Not later than 3 
days before taking any action under subpara-
graph (C), the Secretary shall notify the Com-
mittee on Banking, Housing, and Urban Affairs 
of the Senate and the Committee on Transpor-
tation and Infrastructure of the House of Rep-
resentatives of such action. 
‘‘(3) CIVIL PENALTIES.— 
‘‘(A) IMPOSITION OF CIVIL PENALTIES.— 
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‘‘(i) IN
GENERAL.—The Secretary 
may impose a civil penalty under para-
graph (1)(F) only if— 
‘‘(I) the Secretary has exhausted 
the 
enforcement 
actions 
available 
under subparagraphs (A) through (E) 
of paragraph (1); and 
‘‘(II) the recipient continues to 
be in violation of Federal safety law. 
‘‘(ii) 
EXCEPTION.—The 
Secretary 
may waive the requirement under clause 
(i)(I) if the Secretary determines that such 
a waiver is in the public interest. 
‘‘(B) NOTICE.—Before imposing a civil 
penalty on a recipient under paragraph (1)(F), 
the Secretary shall provide to the recipient— 
‘‘(i) written notice of any violation 
and the penalty proposed to be imposed; 
and 
‘‘(ii) a reasonable period of time with-
in which the recipient may address the vio-
lation or propose and initiate an alter-
native means of compliance that the Sec-
retary determines is acceptable. 
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‘‘(C) FAILURE TO ADDRESS.—If the recipi-
ent does not address the violation or propose an 
alternative means of compliance that the Sec-
retary determines is acceptable within the pe-
riod of time specified in the written notice, the 
Secretary may impose a civil penalty under 
paragraph (1)(F). 
‘‘(D) NOTIFICATION.—Not later than 3 
days before taking any action under subpara-
graph (C), the Secretary shall notify the Com-
mittee on Banking, Housing, and Urban Affairs 
of the Senate and the Committee on Transpor-
tation and Infrastructure of the House of Rep-
resentatives of such action. 
‘‘(E) DEPOSIT OF CIVIL PENALTIES.—Any 
amounts collected by the Secretary under this 
paragraph shall be deposited into the Mass 
Transit Account of the Highway Trust Fund. 
‘‘(4) ENFORCEMENT BY THE ATTORNEY GEN-
ERAL.—At the request of the Secretary, the Attor-
ney General may bring a civil action— 
‘‘(A) for appropriate injunctive relief to en-
sure compliance with this section; 
‘‘(B) to collect a civil penalty imposed 
under paragraph (1)(F); and 
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‘‘(C) to enforce a subpoena, request for ad-
missions, request for production of documents 
or other tangible things, or request for testi-
mony by deposition issued by the Secretary 
under this section. 
‘‘(h) COST-BENEFIT ANALYSIS.— 
‘‘(1) ANALYSIS
REQUIRED.—In carrying out 
this section, the Secretary shall take into consider-
ation the costs and benefits of each action the Sec-
retary proposes to take under this section. 
‘‘(2) WAIVER.—The Secretary may waive the 
requirement under this subsection if the Secretary 
determines that such a waiver is in the public inter-
est. 
‘‘(i) CONSULTATION BY THE SECRETARY OF HOME-
LAND SECURITY.—The Secretary of Homeland Security 
shall consult with the Secretary of Transportation before 
the Secretary of Homeland Security issues a rule or order 
that the Secretary of Transportation determines affects 
the safety of public transportation design, construction, or 
operations. 
‘‘(j) PREEMPTION OF STATE LAW.— 
‘‘(1) NATIONAL
UNIFORMITY
OF
REGULA-
TION.—Laws, regulations, and orders related to pub-
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907 
lic transportation safety shall be nationally uniform 
to the extent practicable. 
‘‘(2) IN GENERAL.—A State may adopt or con-
tinue in force a law, regulation, or order related to 
the safety of public transportation until the Sec-
retary issues a rule or order covering the subject 
matter of the State requirement. 
‘‘(3) MORE
STRINGENT
LAW.—A State may 
adopt or continue in force a law, regulation, or order 
related to the safety of public transportation that is 
consistent with, in addition to, or more stringent 
than a regulation or order of the Secretary if the 
Secretary determines that the law, regulation, or 
order— 
‘‘(A) has a safety benefit; 
‘‘(B) is not incompatible with a law, regu-
lation, or order, or the terms and conditions of 
a financial assistance agreement of the United 
States Government; and 
‘‘(C) does not unreasonably burden inter-
state commerce. 
‘‘(4) ACTIONS UNDER STATE LAW.— 
‘‘(A) RULE OF CONSTRUCTION.—Nothing 
in this section shall be construed to preempt an 
action under State law seeking damages for 
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908 
personal injury, death, or property damage al-
leging that a party has failed to comply with— 
‘‘(i) a Federal standard of care estab-
lished by a regulation or order issued by 
the Secretary under this section; 
‘‘(ii) its own program, rule, or stand-
ard that it created pursuant to a rule or 
order issued by the Secretary; or 
‘‘(iii) a State law, regulation, or order 
that is not incompatible with paragraph 
(2). 
‘‘(B) EFFECTIVE DATE.—This paragraph 
shall apply to any cause of action under State 
law arising from an event or activity occurring 
on or after the date of enactment of the Fed-
eral Public Transportation Act of 2012. 
‘‘(5) JURISDICTION.—Nothing in this section 
shall be construed to create a cause of action under 
Federal law on behalf of an injured party or confer 
Federal question jurisdiction for a State law cause 
of action. 
‘‘(k) ANNUAL REPORT.—The Secretary shall submit 
to the Committee on Banking, Housing, and Urban Af-
fairs of the Senate and the Committee on Transportation 
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and Infrastructure of the House of Representatives an an-
nual report that— 
‘‘(1) analyzes public transportation safety 
trends among the States and documents the most ef-
fective safety programs implemented using grants 
under this section; and 
‘‘(2) describes the effect on public transpor-
tation safety of activities carried out using grants 
under this section.’’. 
(b) BUS SAFETY STUDY.— 
(1) DEFINITION.—In this subsection, the term 
‘‘highway route’’ means a route where 50 percent or 
more of the route is on roads having a speed limit 
of more than 45 miles per hour. 
(2) STUDY.—Not later than 180 days after the 
date of enactment of this Act, the Secretary of 
Transportation shall submit to the Committee on 
Banking, Housing, and Urban Affairs of the Senate 
and the Committee on Transportation and Infra-
structure of the House of Representatives a report 
that— 
(A) examines the safety of public transpor-
tation buses that travel on highway routes; 
(B) examines laws and regulations that 
apply to commercial over-the-road buses; and 
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(C) makes recommendations as to whether 
additional safety measures should be required 
for public transportation buses that travel on 
highway routes. 
SEC. 20022. ALCOHOL AND CONTROLLED SUBSTANCES 
TESTING. 
Section 5331(b)(2) of title 49, United States Code, 
is amended— 
(1) by redesignating subparagraphs (A) and 
(B) as subparagraphs (B) and (C), respectively; and 
(2) by inserting before subparagraph (B), as so 
redesignated, the following: 
‘‘(A) shall establish and implement an enforce-
ment program that includes the imposition of pen-
alties for failure to comply with this section;’’. 
SEC. 20023. NONDISCRIMINATION. 
(a) AMENDMENTS.—Section 5332 of title 49, United 
States Code, is amended— 
(1) in subsection (b)— 
(A) by striking ‘‘creed’’ and inserting ‘‘reli-
gion’’; and 
(B) by inserting ‘‘disability,’’ after ‘‘sex,’’; 
and 
(2) in subsection (d)(3), by striking ‘‘and’’ and 
inserting ‘‘or’’. 
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(b) EVALUATION AND REPORT.— 
(1) EVALUATION.—The Comptroller General of 
the United States shall evaluate the progress and ef-
fectiveness of the Federal Transit Administration in 
assisting recipients of assistance under chapter 53 of 
title 49, United States Code, to comply with section 
5332(b) of title 49, including— 
(A) by reviewing discrimination complaints, 
reports, and other relevant information collected 
or prepared by the Federal Transit Administra-
tion or recipients of assistance from the Federal 
Transit Administration pursuant to any appli-
cable civil rights statute, regulation, or other re-
quirement; and 
(B) by reviewing the process that the Fed-
eral Transit Administration uses to resolve dis-
crimination complaints filed by members of the 
public. 
(2) REPORT.—Not later than 1 year after the 
date of enactment of this Act, the Comptroller Gen-
eral 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 concerning 
the evaluation under paragraph (1) that includes— 
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(A) a description of the ability of the Fed-
eral Transit Administration to address discrimi-
nation and foster equal opportunities in feder-
ally funded public transportation projects, pro-
grams, and activities; 
(B) recommendations for improvements if 
the Comptroller General determines that im-
provements are necessary; and 
(C) information upon which the evaluation 
under paragraph (1) is based. 
SEC. 20024. LABOR STANDARDS. 
Section 5333(b) of title 49, United States Code, is 
amended— 
(1) in paragraph (1), by striking ‘‘sections 
5307–5312, 5316, 5318, 5323(a)(1), 5323(b), 
5323(d), 5328, 5337, and 5338(b)’’ each place that 
term appears and inserting ‘‘sections 5307, 5308, 
5309, 5311, and 5337’’; and 
(2) in paragraph (5), by inserting ‘‘of Labor’’ 
after ‘‘Secretary’’. 
SEC. 20025. ADMINISTRATIVE PROVISIONS. 
Section 5334 of title 49, United States Code, is 
amended— 
(1) in subsection (a)(1), by striking ‘‘under sec-
tions 5307 and 5309–5311 of this title’’ and insert-
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ing ‘‘that receives Federal financial assistance under 
this chapter’’; 
(2) in subsection (b)(1)— 
(A) by inserting after ‘‘emergency,’’ the 
following: ‘‘or for purposes of establishing and 
enforcing a program to improve the safety of 
public transportation systems in the United 
States,’’; and 
(B) by striking ‘‘chapter, nor may the Sec-
retary’’ and inserting ‘‘chapter. The Secretary 
may not’’; 
(3) in subsection (c)(4), by striking ‘‘section 
(except 
subsection 
(i)) 
and 
sections 
5318(e), 
5323(a)(2), 5325(a), 5325(b), and 5325(f)’’ and in-
serting ‘‘subsection’’; 
(4) in subsection (h)(3), by striking ‘‘another’’ 
and inserting ‘‘any other’’; 
(5) in subsection (i)(1), by striking ‘‘title 23 
shall’’ and inserting ‘‘title 23 may’’; 
(6) by striking subsection (j); and 
(7) by redesignating subsections (k) and (l) as 
subsections (j) and (k), respectively. 
SEC. 20026. NATIONAL TRANSIT DATABASE. 
Section 5335 of title 49, United States Code, is 
amended by adding at the end the following: 
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‘‘(c) DATA REQUIRED TO BE REPORTED.—The re-
cipient of a grant under this chapter shall report to the 
Secretary, for inclusion in the National Transit Database, 
any information relating to— 
‘‘(1) the causes of a reportable incident, as de-
fined by the Secretary; and 
‘‘(2) a transit asset inventory or condition as-
sessment conducted by the recipient.’’. 
SEC. 20027. APPORTIONMENT OF APPROPRIATIONS FOR 
FORMULA GRANTS. 
Section 5336 of title 49, United States Code, is 
amended to read as follows: 
‘‘§ 5336. Apportionment of appropriations for formula 
grants 
‘‘(a) BASED ON URBANIZED AREA POPULATION.— 
Of the amount apportioned under subsection (h)(4) to 
carry out section 5307— 
‘‘(1) 9.32 percent shall be apportioned each fis-
cal year only in urbanized areas with a population 
of less than 200,000 so that each of those areas is 
entitled to receive an amount equal to— 
‘‘(A) 50 percent of the total amount appor-
tioned multiplied by a ratio equal to the popu-
lation of the area divided by the total popu-
lation of all urbanized areas with populations of 
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less than 200,000 as shown in the most recent 
decennial census; and 
‘‘(B) 50 percent of the total amount appor-
tioned multiplied by a ratio for the area based 
on population weighted by a factor, established 
by the Secretary, of the number of inhabitants 
in each square mile; and 
‘‘(2) 90.68 percent shall be apportioned each 
fiscal year only in urbanized areas with populations 
of at least 200,000 as provided in subsections (b) 
and (c) of this section. 
‘‘(b) BASED ON FIXED GUIDEWAY VEHICLE REV-
ENUE MILES, DIRECTIONAL ROUTE MILES, AND PAS-
SENGER MILES.—(1) In this subsection, ‘fixed guideway 
vehicle revenue miles’ and ‘fixed guideway directional 
route miles’ include passenger ferry operations directly or 
under contract by the designated recipient. 
‘‘(2) Of the amount apportioned under subsection 
(a)(2) of this section, 33.29 percent shall be apportioned 
as follows: 
‘‘(A) 95.61 percent of the total amount appor-
tioned under this subsection shall be apportioned so 
that each urbanized area with a population of at 
least 200,000 is entitled to receive an amount equal 
to— 
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‘‘(i) 60 percent of the 95.61 percent appor-
tioned under this subparagraph multiplied by a 
ratio equal to the number of fixed guideway ve-
hicle revenue miles attributable to the area, as 
established by the Secretary, divided by the 
total number of all fixed guideway vehicle rev-
enue miles attributable to all areas; and 
‘‘(ii) 40 percent of the 95.61 percent ap-
portioned under this subparagraph multiplied 
by a ratio equal to the number of fixed guide-
way directional route miles attributable to the 
area, established by the Secretary, divided by 
the total number of all fixed guideway direc-
tional route miles attributable to all areas. 
An urbanized area with a population of at least 
750,000 in which commuter rail transportation is 
provided shall receive at least .75 percent of the 
total amount apportioned under this subparagraph. 
‘‘(B) 4.39 percent of the total amount appor-
tioned under this subsection shall be apportioned so 
that each urbanized area with a population of at 
least 200,000 is entitled to receive an amount equal 
to— 
‘‘(i) the number of fixed guideway vehicle 
passenger miles traveled multiplied by the num-
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ber of fixed guideway vehicle passenger miles 
traveled for each dollar of operating cost in an 
area; divided by 
‘‘(ii) the total number of fixed guideway 
vehicle passenger miles traveled multiplied by 
the total number of fixed guideway vehicle pas-
senger miles traveled for each dollar of oper-
ating cost in all areas. 
An urbanized area with a population of at least 
750,000 in which commuter rail transportation is 
provided shall receive at least .75 percent of the 
total amount apportioned under this subparagraph. 
‘‘(C) Under subparagraph (A) of this para-
graph, fixed guideway vehicle revenue or directional 
route miles, and passengers served on those miles, in 
an urbanized area with a population of less than 
200,000, where the miles and passengers served oth-
erwise would be attributable to an urbanized area 
with a population of at least 1,000,000 in an adja-
cent State, are attributable to the governmental au-
thority in the State in which the urbanized area with 
a population of less than 200,000 is located. The au-
thority is deemed an urbanized area with a popu-
lation of at least 200,000 if the authority makes a 
contract for the service. 
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‘‘(D) A recipient’s apportionment under sub-
paragraph (A)(i) of this paragraph may not be re-
duced if the recipient, after satisfying the Secretary 
that energy or operating efficiencies would be 
achieved, reduces vehicle revenue miles but provides 
the same frequency of revenue service to the same 
number of riders. 
‘‘(c) BASED ON BUS VEHICLE REVENUE MILES AND 
PASSENGER MILES.—Of the amount apportioned under 
subsection (a)(2) of this section, 66.71 percent shall be 
apportioned as follows: 
‘‘(1) 90.8 percent of the total amount appor-
tioned under this subsection shall be apportioned as 
follows: 
‘‘(A) 73.39 percent of the 90.8 percent ap-
portioned under this paragraph shall be appor-
tioned so that each urbanized area with a popu-
lation of at least 1,000,000 is entitled to receive 
an amount equal to— 
‘‘(i) 50 percent of the 73.39 percent 
apportioned under this subparagraph mul-
tiplied by a ratio equal to the total bus ve-
hicle revenue miles operated in or directly 
serving the urbanized area divided by the 
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total bus vehicle revenue miles attributable 
to all areas; 
‘‘(ii) 25 percent of the 73.39 percent 
apportioned under this subparagraph mul-
tiplied by a ratio equal to the population of 
the area divided by the total population of 
all areas, as shown in the most recent de-
cennial census; and 
‘‘(iii) 25 percent of the 73.39 percent 
apportioned under this subparagraph mul-
tiplied by a ratio for the area based on 
population weighted by a factor, estab-
lished by the Secretary, of the number of 
inhabitants in each square mile. 
‘‘(B) 26.61 percent of the 90.8 percent ap-
portioned under this paragraph shall be appor-
tioned so that each urbanized area with a popu-
lation of at least 200,000 but not more than 
999,999 is entitled to receive an amount equal 
to— 
‘‘(i) 50 percent of the 26.61 percent 
apportioned under this subparagraph mul-
tiplied by a ratio equal to the total bus ve-
hicle revenue miles operated in or directly 
serving the urbanized area divided by the 
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total bus vehicle revenue miles attributable 
to all areas; 
‘‘(ii) 25 percent of the 26.61 percent 
apportioned under this subparagraph mul-
tiplied by a ratio equal to the population of 
the area divided by the total population of 
all areas, as shown by the most recent de-
cennial census; and 
‘‘(iii) 25 percent of the 26.61 percent 
apportioned under this subparagraph mul-
tiplied by a ratio for the area based on 
population weighted by a factor, estab-
lished by the Secretary, of the number of 
inhabitants in each square mile. 
‘‘(2) 9.2 percent of the total amount appor-
tioned under this subsection shall be apportioned so 
that each urbanized area with a population of at 
least 200,000 is entitled to receive an amount equal 
to— 
‘‘(A) the number of bus passenger miles 
traveled multiplied by the number of bus pas-
senger miles traveled for each dollar of oper-
ating cost in an area; divided by 
‘‘(B) the total number of bus passenger 
miles traveled multiplied by the total number of 
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bus passenger miles traveled for each dollar of 
operating cost in all areas. 
‘‘(d) DATE
OF APPORTIONMENT.—The Secretary 
shall— 
‘‘(1) apportion amounts appropriated under sec-
tion 5338(a)(2)(C) of this title to carry out section 
5307 of this title not later than the 10th day after 
the date the amounts are appropriated or October 1 
of the fiscal year for which the amounts are appro-
priated, whichever is later; and 
‘‘(2) publish apportionments of the amounts, in-
cluding amounts attributable to each urbanized area 
with a population of more than 50,000 and amounts 
attributable to each State of a multistate urbanized 
area, on the apportionment date. 
‘‘(e) AMOUNTS NOT APPORTIONED TO DESIGNATED 
RECIPIENTS.—The Governor of a State may expend in an 
urbanized area with a population of less than 200,000 an 
amount apportioned under this section that is not appor-
tioned to a designated recipient, as defined in section 
5302(4). 
‘‘(f) TRANSFERS
OF APPORTIONMENTS.—(1) The 
Governor of a State may transfer any part of the State’s 
apportionment under subsection (a)(1) of this section to 
supplement amounts apportioned to the State under sec-
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tion 5311(c)(3). The Governor may make a transfer only 
after consulting with responsible local officials and pub-
licly owned operators of public transportation in each area 
for which the amount originally was apportioned under 
this section. 
‘‘(2) The Governor of a State may transfer any part 
of the State’s apportionment under section 5311(c)(3) to 
supplement amounts apportioned to the State under sub-
section (a)(1) of this section. 
‘‘(3) The Governor of a State may use throughout 
the State amounts of a State’s apportionment remaining 
available for obligation at the beginning of the 90-day pe-
riod before the period of the availability of the amounts 
expires. 
‘‘(4) A designated recipient for an urbanized area 
with a population of at least 200,000 may transfer a part 
of its apportionment under this section to the Governor 
of a State. The Governor shall distribute the transferred 
amounts to urbanized areas under this section. 
‘‘(5) Capital and operating assistance limitations ap-
plicable to the original apportionment apply to amounts 
transferred under this subsection. 
‘‘(g) PERIOD OF AVAILABILITY TO RECIPIENTS.—An 
amount apportioned under this section may be obligated 
by the recipient for 5 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 5-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 fiscal year. 
‘‘(h) APPORTIONMENTS.—Of the amounts made 
available 
for 
each 
fiscal 
year 
under 
section 
5338(a)(2)(C)— 
‘‘(1) $35,000,000 shall be set aside to carry out 
section 5307(i); 
‘‘(2) 3.07 percent shall be apportioned to ur-
banized areas in accordance with subsection (j); 
‘‘(3) of amounts not apportioned under para-
graphs (1) and (2), 1 percent shall be apportioned 
to urbanized areas with populations of less than 
200,000 in accordance with subsection (i); and 
‘‘(4) any amount not apportioned under para-
graphs (1), (2), and (3) shall be apportioned to ur-
banized areas in accordance with subsections (a) 
through (c). 
‘‘(i) SMALL
TRANSIT
INTENSIVE
CITIES
FOR-
MULA.— 
‘‘(1) DEFINITIONS.—In this subsection, the fol-
lowing definitions apply: 
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