To promote increased public transportation use, to promote increased use of alternative fuels in providing public transportation, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Providing Gas Price Relief Through 
Public Transportation Act of 2011''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) In 2008, during a year of record-high gas prices, 
        people in the United States took more than 10,500,000,000 trips 
        using public transportation, the highest level in 50 years.
            (2) Public transportation use in the United States is up 31 
        percent since 1995, a figure that is more than double the 
        growth rate of the Nation's population and is substantially 
        greater than the growth rate for vehicle miles traveled on the 
        Nation's highways for that same period.
            (3) High gas prices in 2011 are expected to drive the 
        demand for transit services even higher, with some estimates 
        showing that $5-per-gallon gas could result in a nearly 15 
        percent jump in transit ridership.
            (4) Based on the price of gas in March 2011, riding public 
        transportation saves households an average of $825 per month, 
        or nearly $10,000 per year.
            (5) Despite increasing demand for transit services, 
        widespread cuts in State and local funding have caused 59 
        percent of public transit systems in the United States to raise 
        fares or cut service since January 2009.
            (6) Although under existing laws Federal employees in the 
        National Capital Region receive transit benefits, transit 
        benefits should be available to all Federal employees in the 
        United States so that the Federal Government sets a leading 
        example of greater public transportation use.
            (7) Public transportation stakeholders should engage and 
        involve local communities in the education and promotion of the 
        importance of utilizing public transportation.
            (8) Increasing public transportation use is a national 
        priority.

SEC. 3. GRANTS TO IMPROVE PUBLIC TRANSPORTATION SERVICES.

    (a) Authorizations of Appropriations.--
            (1) Urbanized area formula grants.--In addition to amounts 
        allocated under section 5338(b)(2)(B) of title 49, United 
        States Code, to carry out section 5307 of such title, there is 
        authorized to be appropriated $750,000,000 for each of fiscal 
        years 2011 and 2012 to carry out such section. Such funds shall 
        be apportioned not later than 7 days after the date on which 
        the funds are appropriated, in accordance with section 5336 
        (other than subsections (i)(1) and (j)) of such section but may 
        not be combined or commingled with any other funds apportioned 
        under such section 5336.
            (2) Formula grants for other than urbanized areas.--In 
        addition to amounts allocated under section 5338(b)(2)(G) of 
        title 49, United States Code, to carry out section 5311 of such 
        title, there is authorized to be appropriated $100,000,000 for 
        each of fiscal years 2011 and 2012 to carry out such section 
        5311. Such funds shall be apportioned not later than 7 days 
        after the date on which the funds are appropriated, in 
        accordance with such section 5311 but may not be combined or 
        commingled with any other funds apportioned under such section 
        5311.
    (b) Use of Funds.--Notwithstanding sections 5307 and 5311 of title 
49, United States Code, the Secretary of Transportation may make grants 
under such sections from amounts appropriated under subsection (a) only 
for one or more of the following:
            (1) If the recipient of the grant is reducing, or certifies 
        to the Secretary within the time the Secretary prescribes that, 
        during the term of the grant, the recipient will reduce one or 
        more fares the recipient charges for public transportation, or 
        in the case of subsection (f) of such section 5311, intercity 
        bus service, those operating costs of equipment and facilities 
        being used to provide the public transportation, or in the case 
        of subsection (f) of such section 5311, intercity bus service, 
        that the recipient is no longer able to pay from the revenues 
        derived from such fare or fares as a result of such reduction.
            (2) To avoid increases in fares for public transportation, 
        or in the case of subsection (f) of such section 5311, 
        intercity bus service, or decreases in current public 
        transportation service, or in the case of subsection (f) of 
        such section 5311, intercity bus service, that would otherwise 
        result from an increase in costs to the public transportation 
        or intercity bus agency for transportation-related fuel or 
        meeting additional transportation-related equipment or facility 
        maintenance needs, if the recipient of the grant certifies to 
        the Secretary within the time the Secretary prescribes that, 
        during the term of the grant, the recipient will not increase 
        the fares that the recipient charges for public transportation, 
        or in the case of subsection (f) of such section 5311, 
        intercity bus service, or, will not decrease the public 
        transportation service, or in the case of subsection (f) of 
        such section 5311, intercity bus service, that the recipient 
        provides.
            (3) If the recipient of the grant is expanding, or 
        certifies to the Secretary within the time the Secretary 
        prescribes that, during the term of the grant, the recipient 
        will expand public transportation service, or in the case of 
        subsection (f) of such section 5311, intercity bus service, 
        those operating and capital costs of equipment and facilities 
        being used to provide the public transportation service, or in 
        the case of subsection (f) of such section 5311, intercity bus 
        service, that the recipient incurs as a result of the expansion 
        of such service.
            (4) If the recipient of the grant is acquiring, or 
        certifies to the Secretary within the time the Secretary 
        prescribes that, during the term of the grant, the recipient 
        will acquire, clean fuel or alternative fuel vehicle-related 
        equipment or facilities for the purpose of improving fuel 
        efficiency, the costs of acquiring the equipment or facilities.
            (5) If the recipient of the grant is establishing or 
        expanding, or certifies to the Secretary within the time the 
        Secretary prescribes that, during the term of the grant, the 
        recipient will establish or expand commuter matching services 
        to provide commuters with information and assistance about 
        alternatives to single occupancy vehicle use, those 
        administrative costs in establishing or expanding such 
        services.
    (c) Federal Share.--Notwithstanding any other provision of law, the 
Federal share of the costs for which a grant is made under this section 
shall be 100 percent.
    (d) Period of Availability.--Funds appropriated under this section 
shall remain available for a period of 2 fiscal years.

SEC. 4. INCREASED FEDERAL SHARE FOR CLEAN AIR ACT COMPLIANCE.

    Notwithstanding section 5323(i)(1) of title 49, United States Code, 
a grant for a project to be assisted under chapter 53 of such title 
during fiscal years 2011 and 2012 that involves acquiring clean fuel or 
alternative fuel vehicle-related equipment or facilities for the 
purposes of complying with or maintaining compliance with the Clean Air 
Act (42 U.S.C. 7401 et seq.) shall be for 100 percent of the net 
project cost of the equipment or facility attributable to compliance 
with that Act unless the grant recipient requests a lower grant 
percentage.

SEC. 5. TRANSPORTATION FRINGE BENEFITS.

    (a) In General.--Requirement that agencies offer transit pass 
transportation fringe benefits to their employees nationwide.--
            (1) In general.--Section 3049(a)(1) of the Safe, 
        Accountable, Flexible, Efficient Transportation Equity Act: A 
        Legacy for Users (5 U.S.C. 7905 note; 119 Stat. 1711) is 
        amended--
                    (A) by striking ``Effective'' and all that follows 
                through ``each covered agency'' and inserting ``Each 
                agency''; and
                    (B) by inserting ``at a location in an urbanized 
                area of the United States that is served by fixed route 
                public transportation'' before ``shall be offered''.
            (2) Conforming amendments.--Section 3049(a) of such Act (5 
        U.S.C. 7905 note; 119 Stat. 1711) is amended--
                    (A) in paragraph (3)--
                            (i) by striking subparagraph (A); and
                            (ii) by redesignating subparagraphs (B) 
                        through (F) as subparagraphs (A) through (E), 
                        respectively; and
                    (B) in paragraph (4) by striking ``a covered 
                agency'' and inserting ``an agency''.
    (b) Benefits Described.--Section 3049(a)(2) of such Act (5 U.S.C. 
7905 note; 119 Stat. 1711) is amended by striking the period at the end 
and inserting the following: ``, except that the maximum level of such 
benefits shall be the maximum amount which may be excluded from gross 
income for qualified parking as in effect for a month under section 
132(f)(2)(B) of the Internal Revenue Code of 1986.''.
    (c) Guidance.--Section 3049(a) of such Act (5 U.S.C. 7905 note; 119 
Stat. 1711) is amended by adding at the end the following:
            ``(5) Guidance.--
                    ``(A) Issuance.--Not later than 60 days after the 
                date of enactment of this paragraph, the Secretary of 
                Transportation shall issue guidance on nationwide 
                implementation of the transit pass transportation 
                fringe benefits program under this subsection.
                    ``(B) Uniform application.--
                            ``(i) In general.--The guidance to be 
                        issued under subparagraph (A) shall contain a 
                        uniform application for use by all Federal 
                        employees applying for benefits from an agency 
                        under the program.
                            ``(ii) Required information.--As part of 
                        such an application, an employee shall provide, 
                        at a minimum, the employee's home and work 
                        addresses, a breakdown of the employee's 
                        commuting costs, and a certification of the 
                        employee's eligibility for benefits under the 
                        program.
                            ``(iii) Warning against false statements.--
                        Such an application shall contain a warning 
                        against making false statements in the 
                        application.
                    ``(C) Independent verification requirements.--The 
                guidance to be issued under subparagraph (A) shall 
                contain independent verification requirements to ensure 
                that, with respect to an employee of an agency--
                            ``(i) the eligibility of the employee for 
                        benefits under the program is verified by an 
                        official of the agency;
                            ``(ii) employee commuting costs are 
                        verified by an official of the agency; and
                            ``(iii) records of the agency are checked 
                        to ensure that the employee is not receiving 
                        parking benefits from the agency.
                    ``(D) Program implementation requirements.--The 
                guidance to be issued under subparagraph (A) shall 
                contain program implementation requirements applicable 
                to each agency to ensure that--
                            ``(i) benefits provided by the agency under 
                        the program are adjusted in cases of employee 
                        travel, leave, or change of address;
                            ``(ii) removal from the program is included 
                        in the procedures of the agency relating to an 
                        employee separating from employment with the 
                        agency; and
                            ``(iii) benefits provided by the agency 
                        under the program are made available using an 
                        electronic format (rather than using paper fare 
                        media) where such a format is available for 
                        use.
                    ``(E) Enforcement and penalties.--The guidance to 
                be issued under subparagraph (A) shall contain a 
                uniform administrative policy on enforcement and 
                penalties. Such policy shall be implemented by each 
                agency to ensure compliance with program requirements, 
                to prevent fraud and abuse, and, as appropriate, to 
                penalize employees who have abused or misused the 
                benefits provided under the program.
                    ``(F) Periodic reviews.--The guidance to be issued 
                under subparagraph (A) shall require each agency, not 
                later than September 1 of the first fiscal year 
                beginning after the date of enactment of this 
                paragraph, and every 3 years thereafter, to develop and 
                submit to the Secretary a review of the agency's 
                implementation of the program. Each such review shall 
                contain, at a minimum, the following:
                            ``(i) An assessment of the agency's 
                        implementation of the guidance, including a 
                        summary of the audits and investigations, if 
                        any, of the program conducted by the Inspector 
                        General of the agency.
                            ``(ii) Information on the total number of 
                        employees of the agency that are participating 
                        in the program.
                            ``(iii) Information on the total number of 
                        single occupancy vehicles removed from the 
                        roadway network as a result of participation by 
                        employees of the agency in the program.
                            ``(iv) Information on energy savings and 
                        emissions reductions, including reductions in 
                        greenhouse gas emissions, resulting from 
                        reductions in single occupancy vehicle use by 
                        employees of the agency that are participating 
                        in the program.
                            ``(v) Information on reduced congestion and 
                        improved air quality resulting from reductions 
                        in single occupancy vehicle use by employees of 
                        the agency that are participating in the 
                        program.
                            ``(vi) Recommendations to increase program 
                        participation and thereby reduce single 
                        occupancy vehicle use by Federal employees 
                        nationwide.
            ``(6) Reporting requirements.--Not later than September 30 
        of the first fiscal year beginning after the date of enactment 
        of this paragraph, and every 3 years thereafter, the Secretary 
        shall submit to the Committee on Transportation and 
        Infrastructure and the Committee on Oversight and Government 
        Reform of the House of Representatives and the Committee on 
        Banking, Housing, and Urban Affairs of the Senate a report on 
        nationwide implementation of the transit pass transportation 
        fringe benefits program under this subsection, including a 
        summary of the information submitted by agencies pursuant to 
        paragraph (5)(F).''.
    (d) Effective Date.--Except as otherwise specifically provided, the 
amendments made by this section shall become effective on the first day 
of the first fiscal year beginning after the date of enactment of this 
Act.

SEC. 6. CAPITAL COST OF CONTRACTING VANPOOL PILOT PROGRAM.

    (a) Establishment.--The Secretary of Transportation shall establish 
and implement a pilot program to carry out vanpool demonstration 
projects in not more than 3 urbanized areas and not more than 2 other 
than urbanized areas.
    (b) Pilot Program.--
            (1) In general.--Notwithstanding section 5323(i) of title 
        49, United States Code, for each project selected for 
        participation in the pilot program, the Secretary shall allow 
        the non-Federal share provided by a recipient of assistance for 
        a capital project under chapter 53 of such title to include the 
        amounts described in paragraph (2).
            (2) Conditions on acquisition of vans.--The amounts 
        referred to in paragraph (1) are any amounts expended by a 
        private provider of public transportation by vanpool for the 
        acquisition of vans to be used by such private provider in the 
        recipient's service area, excluding any amounts the provider 
        may have received in Federal, State, or local government 
        assistance for such acquisition, if the private provider enters 
        into a legally binding agreement with the recipient that 
        requires the private provider to use all revenues it receives 
        in providing public transportation in such service area, in 
        excess of its operating costs, for the purpose of acquiring 
        vans to be used by the private provider in such service area.
    (c) Program Term.--The Secretary may approve an application for a 
vanpool demonstration project for fiscal years 2011 through 2012.
    (d) Report to Congress.--Not later than one year after the date of 
enactment of this Act, the Secretary shall submit to the Committee on 
Transportation and Infrastructure of the House of Representatives and 
the Committee on Banking, Housing, and Urban Affairs of the Senate a 
report containing an assessment of the costs, benefits, and 
efficiencies of the vanpool demonstration projects.

Summary: Providing Gas Price Relief Through Public Transportation Act of 2011 - Authorizes additional FY2011-FY2012 appropriations for formula grants to both urbanized and nonurbanized areas for the operating and capital costs of public transportation (including intercity bus service) equipment and facilities, but only if grant recipients: (1) reduce or do not increase fares, (2) do not reduce service, (3) expand service, (4) acquire clean fuel or alternative fuel vehicle-related equipment or facilities, or (5) establish or expand commuter matching services.

Requires a 100% federal share of a grant project involving acquisition of clean fuel or alternative fuel vehicle-related equipment or facilities to comply with the Clean Air Act.

Amends the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU) to direct the Secretary of Transportation (DOT) to issue guidance on nationwide implementation of the transit pass transportation fringe benefits program for federal employees.

Directs the Secretary to establish a pilot program to carry out vanpool demonstration projects.