362
HR 3 IH1S 
a State or local governmental authority that carries 
out any part of a project described in this section 
without the aid of amounts of the Government and 
according to all applicable procedures and require-
ments if—
‘(A) the State or local governmental au-
thority applies for the payment; 
‘(B) the Secretary approves the payment; 
and 
‘(C) before carrying out the part of the 
project, the Secretary approves the plans and 
specifications for the part in the same way as 
other projects under this section. 
‘(2) FINANCING COSTS.—
‘(A) IN GENERAL.—The cost of carrying 
out part of a project includes the amount of in-
terest earned and payable on bonds issued by 
the State or local governmental authority to the 
extent proceeds of the bonds are expended in 
carrying out the part. 
‘(B) LIMITATION ON AMOUNT OF INTER-
EST.—The amount of interest under this para-
graph may not be more than the most favorable 
interest terms reasonably available for the 
project at the time of borrowing.
363
HR 3 IH1S 
‘(C) CERTIFICATION.—The applicant shall 
certify, in a manner satisfactory to the Sec-
retary, that the applicant has shown reasonable 
diligence in seeking the most favorable financial 
terms. 
‘(3) CAPITAL
PROJECT
COST
INDICES.—The 
Secretary shall consider changes in capital project 
cost indices when determining the estimated cost 
under paragraph (2). 
‘(k) BUS AND BUS FACILITIES PROJECTS.—In mak-
ing 
grants 
under 
subsections 
(m)(1)(C) 
and 
(m)(2)(B)(iii), the Secretary shall consider the age of 
buses, bus fleets, related equipment, and bus-related facili-
ties. 
‘(l) AVAILABILITY OF AMOUNTS.—An amount made 
available or appropriated under section 5338(b), 5338(g), 
or 5338(h) for replacement, rehabilitation, and purchase 
of buses and related equipment and construction of bus-
related facilities or for new fixed guideway capital projects 
shall remain available for 3 fiscal years, including the fis-
cal year in which the amount is made available or appro-
priated. Any of such amounts that are unobligated at the 
end of the 3-fiscal-year period shall be deobligated and 
may be used by the Secretary for any purpose under this 
section.
364
HR 3 IH1S 
‘(m) ALLOCATING AMOUNTS.—
‘(1) FISCAL YEAR 2004.—The total amount of 
funds made available by or appropriated under sec-
tion 5338(b) for fiscal year 2004 shall be allocated 
as follows: 
‘(A) 40 percent for fixed guideway mod-
ernization; 
‘(B) 40 percent for major new fixed guide-
way capital projects; and 
‘(C) 20 percent to replace, rehabilitate, 
and purchase buses and related equipment and 
to construct bus-related facilities. 
‘(2) 
FISCAL
YEARS
2005–2009.—The 
total 
amount of funds made available by section 5338(g), 
and appropriated under section 5338(h), for each of 
fiscal years 2005 through 2009 shall be allocated in 
the fiscal year as follows: 
‘(A) SMALL
CAPITAL
PROJECTS.—From 
funds appropriated under section 5338(h) for 
new fixed guideway capital projects described in 
subsection (d)—
‘(i) $135,000,000 in fiscal year 2005; 
‘(ii) $175,000,000 in fiscal year 2006; 
‘(iii) $200,000,000 in fiscal year 
2007;
365
HR 3 IH1S 
‘(iv) $200,000,000 in fiscal year 
2008; and 
‘(v) $225,000,000 in fiscal year 2009. 
‘(B) REMAINDER.—After the allocation 
under subparagraph (A), the remainder of such 
total amount shall be allocated as follows: 
‘(i) 40 percent for fixed guideway 
modernization, to be derived from funds 
made available under section 5338(g). 
‘(ii) 40 percent for major new fixed 
capital guideway projects, to be derived 
from funds appropriated under section 
5338(h). 
‘(iii) 20 percent to replace, rehabili-
tate, and purchase buses and related 
equipment and to construct bus-related fa-
cilities, to be derived from funds made 
available under section 5338(g). 
‘(3) FUNDING FOR FERRY BOAT SYSTEMS.—Of 
the amounts made available under paragraphs 
(1)(B) and (2)(B)(ii), $10,400,000 shall be available 
in each of fiscal years 2004 through 2009 for new 
fixed guideway capital projects in Alaska or Hawaii 
that are for ferry boats or ferry terminal facilities or 
that are for approaches to ferry terminal facilities.
366
HR 3 IH1S 
Of the amounts made available under paragraphs 
(1)(C) and (2)(B)(iii), $10,000,000 shall be avail-
able in each of fiscal years 2005 through 2009 for 
ferry boats or ferry terminal facilities. 
‘(4) FUEL
CELL
BUS
PROGRAM.—Of the 
amounts made available under subsections (m)(1)(C) 
and (m)(2)(B)(iii) for a fiscal year, the following 
amounts shall be set aside for the national fuel cell 
bus technology development program under section 
3039 of the Federal Public Transportation Act of 
2005: 
‘(A) $4,849,950 for fiscal year 2004. 
‘(B) $10,000,000 for fiscal year 2005. 
‘(C) $11,000,000 for fiscal year 2006. 
‘(D) $12,000,000 for fiscal year 2007. 
‘(E) $13,000,000 for fiscal year 2008. 
‘(F) $14,000,000 for fiscal year 2009. 
‘(n) NEW FIXED GUIDEWAY CAPITAL PROJECT DE-
FINED.—In this section, the term ‘‘new fixed guideway 
capital project’’ means a minimum operable segment of 
a capital project for a new fixed guideway system or exten-
sion to an existing fixed guideway system.’. 
(e) CONFORMING AMENDMENTS.—