§ 5309. — Capital investment grants and loans.
[Laws in effect as of January 7, 2003]
[Document not affected by Public Laws enacted between
January 7, 2003 and December 19, 2003]
[CITE: 49USC5309]
TITLE 49--TRANSPORTATION
SUBTITLE III--GENERAL AND INTERMODAL PROGRAMS
CHAPTER 53--MASS TRANSPORTATION
Sec. 5309. Capital investment grants and loans
(a) General Authority.--(1) The Secretary of Transportation may make
grants and loans under this section to assist State and local
governmental authorities in financing--
(A) capital projects for new fixed guideway systems, and
extensions to existing fixed guideway systems, including the
acquisition of real property, the initial acquisition of rolling
stock for the systems, alternatives analysis related to the
development of the systems, and the acquisition of rights of way,
and relocation, for fixed guideway corridor development for projects
in the advanced stages of alternatives analysis or preliminary
engineering;
(B) capital projects, including property and improvements
(except public highways other than fixed guideway facilities),
needed for an efficient and coordinated mass transportation system;
(C) the capital costs of coordinating mass transportation with
other transportation;
(D) the introduction of new technology, through innovative and
improved products, into mass transportation;
(E) capital projects to modernize existing fixed guideway
systems;
(F) capital projects to replace, rehabilitate, and purchase
buses and related equipment and to construct bus-related facilities;
(G) mass transportation projects planned, designed, and carried
out to meet the special needs of elderly individuals and individuals
with disabilities; and
(H) the development of corridors to support fixed guideway
systems, including protecting rights of way through acquisition,
construction of dedicated bus and high occupancy vehicle lanes and
park and ride lots, and other nonvehicular capital improvements that
the Secretary may decide would result in increased mass
transportation usage in the corridor.
(2) The Secretary of Transportation shall require that all grants
and loans under this subsection be subject to all terms, conditions,
requirements, and provisions the Secretary decides are necessary or
appropriate for the purposes of this section, including requirements for
the disposition of net increases in value of real property resulting
from the project assisted under this section.
(b) Loans for Real Property Interests.--(1) The Secretary of
Transportation may make loans under this section to State and local
governmental authorities to acquire interests in real property for use
on urban mass transportation systems as rights of way, station sites,
and related purposes, including reconstruction, renovation, the net cost
of property management, and relocation payments made under section
5324(a) of this title.
(2) The Secretary of Transportation may make a loan under paragraph
(1) of this subsection for an approved project only after finding that
the property reasonably is expected to be required for a mass
transportation system and that it will be used for that system within a
reasonable time.
(3) An applicant for a loan under this subsection shall provide a
copy of the application to the planning agency for the community
affected by the project at the same time the application is submitted to
the Secretary of Transportation. If the planning agency submits comments
to the Secretary not later than 30 days after the application is
submitted, or, if the agency requests more time within those 30 days,
within a period the Secretary establishes, the Secretary shall consider
those comments before taking final action on the application.
(4) A loan agreement under this subsection shall provide that a
capital project on the property will be started not later than 10 years
after the fiscal year in which the agreement is made. If an interest in
property acquired under this subsection is not used for the purpose for
which it was acquired, an appraisal of the current value of the property
or interest shall be made when a decision is made about the use. The
decision shall be made within the 10-year period. Two-thirds of the
increase in value shall be paid to the Secretary of Transportation for
deposit in the Treasury as miscellaneous receipts.
(5) A loan under this subsection must be repaid not later than 10
years after the date of the loan agreement or on the date a grant
agreement for a capital project on the property is made, whichever is
earlier. Payments made to repay the loan shall be deposited in the
Treasury as miscellaneous receipts.
(c) [Reserved.]
(d) Project as Part of Approved Program of Projects.--Except as
provided in subsections (b)(2) and (e) of this section, the Secretary of
Transportation may approve a grant or loan for a project under this
section only after finding that the project is part of the approved
program of projects required under sections 5303-5306 of this title and
that an applicant--
(1) has or will have the legal, financial, and technical
capacity to carry out the project, satisfactory continuing control
over the use of equipment or facilities, and the capability to
maintain the equipment or facilities; and
(2) will maintain the equipment or facilities.
(e) Criteria for Grants and Loans for Fixed Guideway Systems.--
(1) In general.--The Secretary may approve a grant or loan under
this section for a capital project for a new fixed guideway system
or extension of an existing fixed guideway system only if the
Secretary determines that the proposed project is--
(A) based on the results of an alternatives analysis and
preliminary engineering;
(B) justified based on a comprehensive review of its
mobility improvements, environmental benefits, cost
effectiveness, and operating efficiencies; and
(C) supported by an acceptable degree of local financial
commitment, including evidence of stable and dependable
financing sources to construct, maintain, and operate the system
or extension.
(2) Alternatives analysis and preliminary engineering.--In
evaluating a project under paragraph (1)(A), the Secretary shall
analyze and consider the results of the alternatives analysis and
preliminary engineering for the project.
(3) Project justification.--In evaluating a project under
paragraph (1)(B), the Secretary shall--
(A) consider the direct and indirect costs of relevant
alternatives;
(B) consider factors such as congestion relief, improved
mobility, air pollution, noise pollution, energy consumption,
and all associated ancillary and mitigation costs necessary to
carry out each alternative analyzed, and recognize reductions in
local infrastructure costs achieved through compact land use
development;
(C) identify and consider mass transportation supportive
existing land use policies and future patterns, and the cost of
suburban sprawl;
(D) consider the degree to which the project increases the
mobility of the mass transportation dependent population or
promotes economic development;
(E) consider population density and current transit
ridership in the corridor;
(F) consider the technical capability of the grant recipient
to construct the project;
(G) adjust the project justification to reflect differences
in local land, construction, and operating costs; and
(H) consider other factors that the Secretary determines
appropriate to carry out this chapter.
(4) Local financial commitment.--
(A) Evaluation of project.--In evaluating a project under
paragraph (1)(C), the Secretary shall require that--
(i) the proposed project plan provides for the
availability of contingency amounts that the Secretary
determines to be reasonable to cover unanticipated cost
increases;
(ii) each proposed local source of capital and operating
financing is stable, reliable, and available within the
proposed project timetable; and
(iii) local resources are available to operate the
overall proposed mass transportation system (including
essential feeder bus and other services necessary to achieve
the projected ridership levels) without requiring a
reduction in existing mass transportation services to
operate the proposed project.
(B) Considerations.--In assessing the stability,
reliability, and availability of proposed sources of local
financing under subparagraph (A), the Secretary shall consider--
(i) existing grant commitments;
(ii) the degree to which financing sources are dedicated
to the purposes proposed;
(iii) any debt obligation that exists or is proposed by
the recipient for the proposed project or other mass
transportation purpose; and
(iv) the extent to which the project has a local
financial commitment that exceeds the required non-Federal
share of the cost of the project.
(5) Regulations.--Not later than 120 days after the date of
enactment of the Federal Transit Act of 1998, the Secretary shall
issue regulations on the manner in which the Secretary will evaluate
and rate the projects based on the results of alternatives analysis,
project justification, and the degree of local financial commitment,
as required under this subsection.
(6) Project evaluation and rating.--A proposed project may
advance from alternatives analysis to preliminary engineering, and
may advance from preliminary engineering to final design and
construction, only if the Secretary finds that the project meets the
requirements of this section and there is a reasonable likelihood
that the project will continue to meet such requirements. In making
such findings, the Secretary shall evaluate and rate the project as
``highly recommended'', ``recommended'', or ``not recommended'',
based on the results of alternatives analysis, the project
justification criteria, and the degree of local financial
commitment, as required under this subsection. In rating the
projects, the Secretary shall provide, in addition to the overall
project rating, individual ratings for each of the criteria
established under the regulations issued under paragraph (5).
(7) Full funding grant agreement.--A project financed under this
subsection shall be carried out through a full funding grant
agreement. The Secretary shall enter into a full funding grant
agreement based on the evaluations and ratings required under this
subsection. The Secretary shall not enter into a full funding grant
agreement for a project unless that project is authorized for final
design and construction.
(8) Limitations on applicability.--
(A) Projects with a section 5309 federal share of less than
$25,000,000.--A project for a new fixed guideway system or
extension of an existing fixed guideway system is not subject to
the requirements of this subsection, and the simultaneous
evaluation of similar projects in at least 2 corridors in a
metropolitan area may not be limited, if the assistance provided
under this section with respect to the project is less than
$25,000,000.
(B) Projects in nonattainment areas.--The simultaneous
evaluation of projects in at least 2 corridors in a metropolitan
area may not be limited and the Secretary shall make decisions
under this subsection with expedited procedures that will
promote carrying out an approved State Implementation Plan in a
timely way if a project is--
(i) located in a nonattainment area;
(ii) a transportation control measure (as defined by the
Clean Air Act (42 U.S.C. 7401 et seq.)); and
(iii) required to carry out the State Implementation
Plan.
(C) Projects financed with highway funds.--This subsection
does not apply to a part of a project financed completely with
amounts made available from the Highway Trust Fund (other than
the Mass Transit Account).
(D) Previously issued letter of intent or full funding grant
agreement.--This subsection does not apply to projects for which
the Secretary has issued a letter of intent or entered into a
full funding grant agreement before the date of enactment of the
Federal Transit Act of 1998.
(f) [Reserved.]
(g) Letters of Intent, Full Funding Grant Agreements, and Early
Systems Work Agreements.--(1)(A) The Secretary of Transportation may
issue a letter of intent to an applicant announcing an intention to
obligate, for a project under this section, an amount from future
available budget authority specified in law that is not more than the
amount stipulated as the financial participation of the Secretary in the
project. The amount shall be sufficient to complete at least an operable
segment when a letter is issued for a fixed guideway project.
(B) At least 60 days before issuing a letter under subparagraph (A)
of this paragraph or entering into a full funding grant agreement, the
Secretary of Transportation shall notify in writing the Committee on
Transportation and Infrastructure of the House of Representatives and
the Committee on Banking, Housing, and Urban Affairs of the Senate and
the House and Senate Committees on Appropriations of the proposed letter
or agreement. The Secretary shall include with the notification a copy
of the proposed letter or agreement as well as the evaluations and
ratings for the project.
(C) The issuance of a letter is deemed not to be an obligation under
sections 1108(c) and (d), 1501, and 1502(a) of title 31 or an
administrative commitment.
(D) An obligation or administrative commitment may be made only when
amounts are appropriated.
(2)(A) The Secretary of Transportation may make a full funding grant
agreement with an applicant. The agreement shall--
(i) establish the terms of participation by the United States
Government in a project under this section;
(ii) establish the maximum amount of Government financial
assistance for the project;
(iii) cover the period of time for completing the project,
including a period extending beyond the period of an authorization;
and
(iv) make timely and efficient management of the project easier
according to the law of the United States.
(B) An agreement under this paragraph obligates an amount of
available budget authority specified in law and may include a
commitment, contingent on amounts to be specified in law in advance for
commitments under this paragraph, to obligate an additional amount from
future available budget authority specified in law. The agreement shall
state that the contingent commitment is not an obligation of the
Government. Interest and other financing costs of efficiently carrying
out a part of the project within a reasonable time are a cost of
carrying out the project under a full funding grant agreement, except
that eligible costs may not be more than the cost of the most favorable
financing terms reasonably available for the project at the time of
borrowing. The applicant shall certify, in a way satisfactory to the
Secretary of Transportation, that the applicant has shown reasonable
diligence in seeking the most favorable financing terms. The amount
stipulated in an agreement under this paragraph for a fixed guideway
project shall be sufficient to complete at least an operable segment.
(3)(A) The Secretary of Transportation may make an early systems
work agreement with an applicant if a record of decision under the
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) has
been issued on the project and the Secretary finds there is reason to
believe--
(i) a full funding grant agreement for the project will be made;
and
(ii) the terms of the work agreement will promote ultimate
completion of the project more rapidly and at less cost.
(B) A work agreement under this paragraph obligates an amount of
available budget authority specified in law and shall provide for
reimbursement of preliminary costs of carrying out the project,
including land acquisition, timely procurement of system elements for
which specifications are decided, and other activities the Secretary of
Transportation decides are appropriate to make efficient, long-term
project management easier. A work agreement shall cover the period of
time the Secretary considers appropriate. The period may extend beyond
the period of current authorization. Interest and other financing costs
of efficiently carrying out the work agreement within a reasonable time
are a cost of carrying out the agreement, except that eligible costs may
not be more than the cost of the most favorable financing terms
reasonably available for the project at the time of borrowing. The
applicant shall certify, in a way satisfactory to the Secretary, that
the applicant has shown reasonable diligence in seeking the most
favorable financing terms. If an applicant does not carry out the
project for reasons within the control of the applicant, the applicant
shall repay all Government payments made under the work agreement plus
reasonable interest and penalty charges the Secretary establishes in the
agreement.
(4)(A) The total estimated amount of future obligations of the
Government and contingent commitments to incur obligations covered by
all outstanding letters of intent, full funding grant agreements, and
early systems work agreements may be not more than the greater of the
amount authorized under section 5338(b) of this title for new fixed
guideway systems and extensions to existing fixed guideway systems and
the amount appropriated under section 5338(h)(5) or an amount equivalent
to the last 2 fiscal years of funding authorized under section 5338(b)
for new fixed guideway systems and extensions to existing fixed guideway
systems, less an amount the Secretary of Transportation reasonably
estimates is necessary for grants under this section not covered by a
letter. The total amount covered by new letters and contingent
commitments included in full funding grant agreements and early systems
work agreements may be not more than a limitation specified in law.
(B) For fiscal year 2001 and thereafter, the amount equivalent to
the last 2 fiscal years of funding authorized under section 5338(b) for
new fixed guideway systems and extensions to existing fixed guideway
systems referred to in subparagraph (A) shall be the amount equivalent
to the last 3 fiscal years of such authorized funding.
(C) Any increase in the total estimated amount of future obligations
of the Government and contingent commitments to incur obligations
covered by all outstanding letters of intent, full funding grant
agreements, and early systems work agreements as a result of application
of subparagraph (B) instead of subparagraph (A) shall be available as
follows:
(1) $269,100,000 for the Chicago, Illinois Metra commuter rail
project, that consists of the following elements: the Kane County
extension; the North Central double-tracking project; and the
Southwest corridor extension.
(2) $565,600,000 for the Chicago Transit Authority project that
consists of the following elements: Ravenswood Branch station and
line improvements and the Douglas Branch reconstruction project.
(3) For new fixed guideways and extensions to existing fixed
guideway systems other than for projects referred to in paragraphs
(1) and (2); except that for fiscal year 2001, such increase under
this paragraph shall not be available for allocation by the
department or for making future obligations of the Government and
contingent commitments until April 1, 2001.
(D) Of the amount that would be available under subparagraph (A) if
subparagraph (B) were not in effect and would have otherwise been
allocated by the Federal Transit Administration to those projects
referred to in subparagraphs (C)(1) and (C)(2) shall be available as
follows:
(1) $60,000,000 for the Minneapolis Hiawatha corridor light rail
project, which shall be in addition to amounts otherwise allocated
under subparagraph (A), for a total of $334,300,000.
(2) $217,800,000 for the Dulles corridor bus rapid transit
project, that consists of a rail extension from the West Falls
Church metrorail station to Tysons Corner, Virginia and bus rapid
transit from Tysons Corner to the Dulles International Airport.
(E) Any amount that would be available under subparagraph (A) if
subparagraph (B) were not in effect and would have otherwise been
allocated by the Federal Transit Administration to those projects
referred to in subparagraphs (C)(1) and (C)(2), shall not be available
for allocation by the department or for making future obligations of the
Government and contingent commitments until April 1, 2001, except for
those projects referred to in subparagraph (D)(1) and (D)(2).
(F) Future obligations of the Government and contingent commitments
made against the contingent commitment authority under section
3032(g)(2) of the Intermodal Surface Transportation Efficiency Act of
1991 for the San Francisco BART to the Airport project for fiscal years
2002, 2003, 2004, 2005 and 2006 shall be charged against section
3032(g)(2) of the Intermodal Surface Transportation Efficiency Act of
1991.
(G) Any amount that would be available under subparagraph (A) if
subparagraph (F) were not in effect and would otherwise have been
allocated by the Federal Transit Administration to the project in
subparagraph (F) shall not be available for allocation by the department
or for making future obligations of the Government and contingent
commitments until April 1, 2001.
(h) Government's Share of Net Project Cost.--Based on engineering
studies, studies of economic feasibility, and information on the
expected use of equipment or facilities, the Secretary of Transportation
shall estimate the net project cost. A grant for the project is for 80
percent of the net project cost, unless the grant recipient requests a
lower grant percentage. The remainder shall be provided in cash from a
source other than amounts of the Government. Transit system amounts that
make up the remainder must be from an undistributed cash surplus, a
replacement or depreciation cash fund or reserve, or new capital. The
remainder for a planned extension to a fixed guideway system may include
the cost of rolling stock previously purchased if the applicant
satisfies the Secretary that only amounts other than amounts of the
Government were used and that the purchase was made for use on the
extension. A refund or reduction of the remainder may be made only if a
refund of a proportional amount of the grant of the Government is made
at the same time.
(i) Loan Term Requirements.--Except for a loan under subsection (b)
of this section, a loan, including a renewal or extension of the loan,
may be made, and a security or obligation may be bought, only if it has
a maturity date of not more than 40 years. Interest on a loan may not be
less than--
(1) a rate the Secretary of the Treasury establishes,
considering the current average yield on outstanding marketable
obligations of the Government that have remaining periods of
maturity comparable to the average maturity of the loan, adjusted to
the nearest .125 percent; plus
(2) an allowance the Secretary of Transportation considers
adequate to cover administrative costs and probable losses.
(j) Loan Payment Forgiveness.--A grant agreement for a capital
project may forgive repaying the loan and interest in place of a cash
grant for the amount forgiven. The amount is part of the grant and part
of the contribution of the Government to the cost of the project.
(k) Limitation on Making Loans and Grants for Projects.--The
Secretary of Transportation may not make a loan under this section for a
project for which a grant (except a relocation payment grant) is made
under this section. However, the Secretary may make a project grant even
though real property for the project has been or will be acquired
through a loan under subsection (b) of this section.
(l) Fiscal Capacity Considerations.--If the Secretary of
Transportation gives priority consideration to financing projects that
include more than the non-Government share required under subsection (h)
of this section, the Secretary shall give equal consideration to
differences in the fiscal capacity of State and local governments.
(m) Allocating Amounts.--
(1) In general.--Of the amounts made available by or
appropriated under section 5338(b) for grants and loans under this
section for each of fiscal years 1998 through 2003 and for the
period of October 1, 2003, through February 29, 2004--
(A) 40 percent shall be available for fixed guideway
modernization;
(B) 40 percent shall be available for capital projects for
new fixed guideway systems and extensions to existing fixed
guideway systems; and
(C) 20 percent shall be available to replace, rehabilitate,
and purchase buses and related equipment and to construct bus-
related facilities.
(2) New fixed guideway grants.--
(A) Limitation on amounts available for activities other
than final design and construction.--Not more than 8 percent of
the amounts made available in each fiscal year by paragraph
(1)(B) shall be available for activities other than final design
and construction.
(B) Funding for ferry boat systems.--
(i) Amounts under (1)(b).--Of the amounts made available
under paragraph (1)(B), $10,400,000 shall be available in
each of fiscal years 1999 through 2003 for capital projects
in Alaska or Hawaii, for new fixed guideway systems and
extensions to existing fixed guideway systems that are ferry
boats or ferry terminal facilities, or that are approaches
to ferry terminal facilities.
(ii) Amounts under 5338(h)(5).--Of the amounts
appropriated under section 5338(h)(5), $3,600,000 shall be
available in each of fiscal years 1999 through 2003 for
capital projects in Alaska or Hawaii, for new fixed guideway
systems and extensions to existing fixed guideway systems
that are ferry boats or ferry terminal facilities, or that
are approaches to ferry terminal facilities.
(iii) October 1, 2003 through february 29, 2004.--Of the
amounts made available under paragraph (1)(B), $4,333,333
shall be available for the period of October 1, 2003,
through February 29, 2004, for capital projects described in
clause (i).
(3) Bus and bus facility grants.--
(A) Consideration.--In making grants under paragraph (1)(C),
the Secretary shall consider the age of buses, bus fleets,
related equipment, and bus-related facilities.
(B) Funding for bus testing facility.--Of the amounts made
available under paragraph (1)(C), $3,000,000 shall be available
in each of fiscal years 1998 through 2003 (and $1,250,000 shall
be available for the period October 1, 2003, through February
29, 2004) to carry out section 5318.
(C) Funding for clean fuels.--Of the amounts made available
under paragraph (1)(C), $50,000,000 shall be available in each
of fiscal years 1999 through 2003 (and $20,833,334 shall be
available for the period October 1, 2003, through February 29,
2004) to carry out section 5308.
(D) Other than urbanized areas.--Of amounts made available
by paragraph (1)(C), not less than 5.5 percent shall be
available in each fiscal year for other than urbanized areas.
(4) Eligibility for assistance for multiple projects.--A person
applying for or receiving assistance for a project described in
subparagraph (A), (B), or (C) of paragraph (1) may receive
assistance for a project described in any other of such
subparagraphs.
(n) Undertaking Projects in Advance.--(1) The Secretary of
Transportation may pay the Government's share of the net project cost to
a State or local governmental authority that carries out any part of a
project described in this section or a substitute transit project
described in section 103(e)(4) \1\ of title 23 without the aid of
amounts of the Government and according to all applicable procedures and
requirements if--
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\1\ See References in Text note below.
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(A) the State or local governmental authority 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 or section 103(e)(4) \1\ of
title 23.
(2) The cost of carrying out part of a project includes the amount
of interest 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. However, the amount of interest under this
paragraph may not be more than the most favorable interest terms
reasonably available for the project at the time of borrowing. The
applicant shall certify, in a manner satisfactory to the Secretary of
Transportation, that the applicant has shown reasonable diligence in
seeking the most favorable financial terms.
(3) The Secretary of Transportation shall consider changes in
capital project cost indices when determining the estimated cost under
paragraph (2) of this subsection.
(o) \2\ Use of Deobligated Amounts.--An amount available under this
section that is deobligated may be used for any purpose under this
section.
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\2\ So in original. Two subsecs. (o) have been enacted.
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(o) \2\ Reports.--
(1) Funding levels and allocations of funds for fixed guideway
systems.--
(A) Annual report.--Not later than the first Monday in
February of each year, 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 that includes a proposal on the
allocation of amounts to be made available to finance grants and
loans for capital projects for new fixed guideway systems and
extensions to existing fixed guideway systems among applicants
for those amounts.
(B) Recommendations on funding.--The annual report under
this paragraph shall include evaluations and ratings, as
required under subsection (e), for each project that is
authorized or has received funds under this section since the
date of enactment of the Federal Transit Act of 1998 or October
1 of the preceding fiscal year, whichever date is earlier. The
report shall also include recommendations of projects for
funding based on the evaluations and ratings and on existing
commitments and anticipated funding levels for the next 3 fiscal
years and for the next 10 fiscal years based on information
currently available to the Secretary.
(2) Supplemental report on new starts.--The Secretary shall
submit a report to Congress on the 31st day of August of each year
that describes the Secretary's evaluation and rating of each project
that has completed alternatives analysis or preliminary engineering
since the date of the last report. The report shall include all
relevant information that supports the evaluation and rating of each
project, including a summary of each project's financial plan.
(3) Annual gao review.--The General Accounting Office shall--
(A) conduct an annual review of--
(i) the processes and procedures for evaluating and
rating projects and recommending projects; and
(ii) the Secretary's implementation of such processes
and procedures; and
(B) shall report to Congress on the results of such review
by April 30 of each year.
(p) Project Defined.--In this section, the term ``project'' means,
with respect to a new fixed guideway system or extension to an existing
fixed guideway system, a minimum operable segment of the project.
(Pub. L. 103-272, Sec. 1(d), July 5, 1994, 108 Stat. 800; Pub. L. 104-
287, Sec. 5(9), (12), Oct. 11, 1996, 110 Stat. 3389; Pub. L. 102-240,
title III, Sec. 3049(a), as added Pub. L. 105-130, Sec. 8, Dec. 1, 1997,
111 Stat. 2559; Pub. L. 105-178, title III, Sec. 3009(a), (c)-(h)(1),
(3)(D), (i)-(k), June 9, 1998, 112 Stat. 352-357; Pub. L. 105-206, title
IX, Sec. 9009(g), (h)(3), July 22, 1998, 112 Stat. 855, 856; Pub. L.
106-69, title III, Sec. 347, Oct. 9, 1999, 113 Stat. 1024; Pub. L. 106-
346, Sec. 101(a) [title III, Sec. 380], Oct. 23, 2000, 114 Stat. 1356,
1356A-42; Pub. L. 106-554, Sec. 1(a)(4) [div. A, Sec. 1101], Dec. 21,
2000, 114 Stat. 2763, 2763A-201; Pub. L. 108-88, Sec. 8(a), Sept. 30,
2003, 117 Stat. 1121.)
Historical and Revision Notes
Pub. L. 103-272
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Revised Section Source (U.S. Code) Source (Statutes at Large)
----------------------------------------------------------------------------------------------------------------
5309(a) (1)-(5)....................... 49 App.:1602(a)(1)(A). July 9, 1964, Pub. L. 88-365, Sec.
3(a)(1)(A), 78 Stat. 303; May 25,
1967, Pub. L. 90-19, Sec. 20(a), 81
Stat. 25; Oct. 15, 1970, Pub. L. 91-
453, Sec. 2(2), 84 Stat. 962; Nov.
26, 1974, Pub. L. 93-503, Secs. 102,
104, 106, 88 Stat. 1566, 1571, 1572;
Nov. 6, 1978, Pub. L. 95-599, Sec.
302(a), 92 Stat. 2735; Jan. 6, 1983,
Pub. L. 97-424, Sec. 313, 96 Stat.
2152.
49 App.:1602(a)(1)(B), (C), (D) July 9, 1964, Pub. L. 88-365, Sec.
(1st, 3d sentences). 3(a)(1)(B)-(D), (2)(B), (3), 78 Stat.
303; May 25, 1967, Pub. L. 90-19, Sec.
20(a), 81 Stat. 25; Oct. 15, 1970,
Pub. L. 91-453, Sec. 2(2), 84 Stat.
962; Nov. 26, 1974, Pub. L. 93-503,
Secs. 102, 104, 106, 88 Stat. 1566,
1571, 1572; restated Nov. 6, 1978,
Pub. L. 95-599, Sec. 302(a), 92 Stat.
2735, 2736.
5309(a)(6)............................ 49 App.:1602(a)(1)(E). July 9, 1964, Pub. L. 88-365, Sec.
3(a)(1)(E), 78 Stat. 303; May 25,
1967, Pub. L. 90-19, Sec. 20(a), 81
Stat. 25; Oct. 15, 1970, Pub. L. 91-
453, Sec. 2(2), 84 Stat. 962; Nov.
26, 1974, Pub. L. 93-503, Secs. 102,
104, 106, 88 Stat. 1566, 1571, 1572;
Nov. 6, 1978, Pub. L. 95-599, Sec.
302(a), 92 Stat. 2736; restated Dec.
18, 1991, Pub. L. 102-240, Sec.
3006(a), 105 Stat. 2089.
5309(a)(7)............................ 49 App.:1602(a)(1)(F). July 9, 1964, Pub. L. 88-365, 78 Stat.
302, Sec. 3(a)(1)(F); added Dec. 18,
1991, Pub. L. 102-240, Sec. 3006(b),
105 Stat. 2089.
5309(b)(1)............................ 49 App.:1602(b) (1st sentence). July 9, 1964, Pub. L. 88-365, Sec.
3(b), 78 Stat. 303; May 25, 1967, Pub.
L. 90-19, Sec. 20(a), 81 Stat. 25;
restated Oct. 15, 1970, Pub. L. 91-
453, Sec. 2(2), 84 Stat. 963; Nov. 6,
1978, Pub. L. 95-599, Sec. 302(b), 92
Stat. 2737.
5309(b)(2)............................ 49 App.:1602(a)(2)(B).
5309(b)(3)............................ 49 App.:1602(b) (8th, last
sentences).
5309(b)(4), (5)....................... 49 App.:1602(b) (2d-6th
sentences).
5309(c)............................... 49 App.:1602(a)(5). July 9, 1964, Pub. L. 88-365, 78 Stat.
302, Sec. 3(a)(5); added Jan. 6,
1983, Pub. L. 97-424, Sec. 304(b), 96
Stat. 2149.
5309(d)............................... 49 App.:1602(a)(2)(A). July 9, 1964, Pub. L. 88-365, Sec.
3(a)(2)(A), 78 Stat. 303; May 25,
1967, Pub. L. 90-19, Sec. 20(a), 81
Stat. 25; Oct. 15, 1970, Pub. L. 91-
453, Sec. 2(2), 84 Stat. 962; Nov.
26, 1974, Pub. L. 93-503, Secs. 102,
104, 106, 88 Stat. 1566, 1571, 1572;
Nov. 6, 1978, Pub. L. 95-599, Sec.
302(a), 92 Stat. 2736; Jan. 6, 1983,
Pub. L. 97-424, Sec. 304(a), 96 Stat.
2149; restated Apr. 2, 1987, Pub. L.
100-17, Sec. 309(e), 101 Stat. 227.
49 App.:1602(a)(3).
5309(e)(1)............................ 49 App.:1602 (note). Apr. 2, 1987, Pub. L. 100-17, Sec.
303(b), 101 Stat. 223.
5309(e) (2)-(7)....................... 49 App.:1602(i). July 9, 1964, Pub. L. 88-365, 78 Stat.
302, Sec. 3(i); added Apr. 2, 1987,
Pub. L. 100-17, Sec. 303(a), 101
Stat. 223; restated Dec. 18, 1991,
Pub. L. 102-240, Sec. 3010, 105 Stat.
2093.
5309(f)(1)............................ 49 App.:1602(a)(1)(D) (last
sentence).
5309(f)(2)............................ 49 App.:1602(a)(1)(D) (2d
sentence).
5309(g)............................... 49 App.:1602(a)(4). July 9, 1964, Pub. L. 88-365, Sec.
3(a)(4), 78 Stat. 303; May 25, 1967,
Pub. L. 90-19, Sec. 20(a), 81 Stat.
25; Oct. 15, 1970, Pub. L. 91-453,
Sec. 2(2), 84 Stat. 962; Nov. 26,
1974, Pub. L. 93-503, Secs. 102, 104,
106, 88 Stat. 1566, 1571, 1572;
restated Nov. 6, 1978, Pub. L. 95-599,
Sec. 302(a), 92 Stat. 2736; Jan. 6,
1983, Pub. L. 97-424, Sec. 305, 96
Stat. 2150; Apr. 2, 1987, Pub. L. 100-
17, Sec. 302, 101 Stat. 223; Dec. 18,
1991, Pub. L. 102-240, Sec. 3007, 105
Stat. 2090.
5309(h)............................... 49 App.:1603(a). July 9, 1964, Pub. L. 88-365, Sec.
4(a), 78 Stat. 304; May 25, 1967, Pub.
L. 90-19, Sec. 20(a), 81 Stat. 25;
Aug. 1, 1968, Pub. L. 90-448, Sec.
704(a), 82 Stat. 535; Oct. 15, 1970,
Pub. L. 91-453, Sec. 3(a), 84 Stat.
965; Aug. 13, 1973, Pub. L. 93-87,
Sec. 301(a), 87 Stat. 295; Nov. 26,
1974, Pub. L. 93-503, Sec. 103(b), 88
Stat. 1571; Nov. 6, 1978, Pub. L. 95-
599, Sec. 303(b), 92 Stat. 2737; Jan.
6, 1983, Pub. L. 97-424, Sec. 302(b),
96 Stat. 2141; Dec. 18, 1991, Pub. L.
102-240, Sec. 3006(f), (g), 105 Stat.
2089.
5309(i)............................... 49 App.:1602(c) (2d, last July 9, 1964, Pub. L. 88-365, Sec.
sentences). 3(c), 78 Stat. 303; May 25, 1967, Pub.
L. 90-19, Sec. 20(a), 81 Stat. 25;
restated Oct. 15, 1970, Pub. L. 91-
453, Sec. 2(2), 84 Stat. 964.
5309(j)............................... 49 App.:1602(b) (7th sentence).
5309(k)............................... 49 App.:1602(c) (1st sentence).
5309(l)............................... 49 App.:1603(d). July 9, 1964, Pub. L. 88-365, 78 Stat.
302, Sec. 4(d); added Dec. 18, 1991,
Pub. L. 102-240, Sec. 3006(h)(2), 105
Stat. 2090.
5309(m)(1)............................ 49 App.:1602(k)(1). July 9, 1964, Pub. L. 88-365, 78 Stat.
302, Sec. 3(k)(1); added Apr. 2,
1987, Pub. L. 100-17, Sec. 305, 101
Stat. 224; restated Dec. 18, 1991,
Pub. L. 102-240, Sec. 3006(d)(1), 105
Stat. 2089.
5309(m)(2)............................ 49 App.:1602(k)(3). July 9, 1964, Pub. L. 88-365, 78 Stat.
302, Sec. 3(k)(3); added Dec. 18,
1991, Pub. L. 102-240, Sec.
3006(d)(2), 105 Stat. 2089.
5309(m)(3)............................ 49 App.:1602(j). July 9, 1964, Pub. L. 88-365, 78 Stat.
302, Sec. 3(j); added Apr. 2, 1987,
Pub. L. 100-17, Sec. 304, 101 Stat.
223.
5309(m)(4)............................ 49 App.:1602(k)(2). July 9, 1964, Pub. L. 88-365, 78 Stat.
302, Sec. 3(k)(2); added Apr. 2,
1987, Pub. L. 100-17, Sec. 305, 101
Stat. 224.
5309(n)............................... 49 App.:1602(l). July 9, 1964, Pub. L. 88-365, 78 Stat.
302, Sec. 3(l); added Apr. 2, 1987,
Pub. L. 100-17, Sec. 306(a), 101
Stat. 224; Dec. 18, 1991, Pub. L. 102-
240, Sec. 3006(e), 105 Stat. 2089.
5309(o)............................... 49 App.:1602(n). July 9, 1964, Pub. L. 88-365, 78 Stat.
302, Sec. 3(n); added Oct. 6, 1992,
Pub. L. 102-388, Sec. 502(d), 106
Stat. 1566.
----------------------------------------------------------------------------------------------------------------
In subsection (a), before clause (1), the words ``in accordance with
the provisions of this chapter'' are omitted as surplus. The words ``and
on such terms and conditions as the Secretary may prescribe'' and 49
App.:1602(a)(1)(D) (3d sentence) are omitted as unnecessary because of
section 5334(a) of the revised title and 49:322(a). The words
``(directly, through the purchase of securities or equipment trust
certificates, or otherwise)'' and ``and agencies thereof'' are omitted
as surplus. In clause (1), the word ``detailed'' is omitted as surplus.
In clause (2), the words ``capital projects'' are substituted for ``the
acquisition, construction, reconstruction, and improvement of facilities
and equipment for use, by operation or lease or otherwise, in mass
transportation service'' for clarity and consistency in this section.
The words ``Eligible facilities and equipment may include personal
property such as buses and other rolling stock, and rail and bus
facilities, and real'' are omitted as surplus. The text of 49
App.:1602(a)(1)(B) (last sentence) is omitted as obsolete because former
49 App.:1604(a)(4) is executed and is not included in this restatement.
In clause (3), the words ``the capital costs of'' are added for clarity
and consistency in this section. The words ``highway and'' are omitted
as surplus.
In subsection (b)(1), the word ``finance'' is omitted as surplus.
In subsection (b)(2), the words ``for real property acquisition''
are omitted as surplus. The words ``for an approved project'' are added
for clarity and consistency. The words ``which shall be in lieu of the
determination required by subparagraph (A)'', ``real'', and ``connection
with'' are omitted as surplus.
In subsection (b)(3), the word ``comprehensive'' is omitted as
surplus. The words ``by the project'' are added for clarity. The words
``a period of'' and ``longer'' are omitted as surplus.
In subsection (b)(4), the words ``a period not exceeding'' and
``Each agreement shall provide that'' are omitted as surplus. The words
``shall be made within the 10-year period'' are substituted for ``shall
not be later than 10 years following the fiscal year in which the
agreement is made'' to eliminate unnecessary words. The words ``if any,
over the original cost of the real property'' are omitted as surplus.
The words ``deposit in'' are substituted for ``credit to'' for
consistency in the revised title and with other titles of the United
States Code.
In subsection (b)(5), the word ``actual'' is omitted as surplus. The
words ``deposited in'' are substituted for ``credited to'' for
consistency in the revised title and with other titles of the Code.
In subsection (c), before clause (1), the words ``grant or loan''
are substituted for ``assistance'' for consistency in the revised
section. In clause (1), the words ``rail carrier'' are substituted for
``railroad'' for consistency in the revised title and with other titles
of the Code.
In subsection (d), before clause (1), the words ``Except as provided
in subsections (b)(2) and (e) of this section'' are added for clarity.
In clause (1), the words ``through operation or lease or otherwise'' are
omitted as surplus.
In subsection (e)(2), before clause (A), the word ``existing'' is
added for clarity and consistency.
In subsection (e)(6)(C), the words ``Part A of title I of the
Intermodal Surface Transportation Efficiency Act of 1991 (Public Law
102-240, 105 Stat. 1915)'' are substituted for ``the Federal-Aid Highway
Act of 1991'' because the Federal-Aid Highway Act of 1991 was title I of
H.R. 1531, that was not enacted into law but contained predecessor
provisions to Part A of title I of H.R. 2950, enacted into law as the
Intermodal Surface Transportation Efficiency Act of 1991.
In subsection (f)(1), the words ``or entity'' are omitted as
surplus.
In subsection (f)(2), before clause (A), the words ``for a project
under subsection (a)(5) of this section'' are added for clarity. In
clause (B), the words ``whether publicly or privately owned'' are
omitted as surplus.
In subsection (g)(1)(A), the words ``The letter shall be regarded as
an intention to obligate'' are omitted as surplus.
In subsection (g)(1)(D), the words ``pursuant to such a letter of
intent'' are omitted as surplus.
In subsection (g)(2)(A)(i), the words ``and conditions'' are omitted
as being included in ``terms''.
In subsection (g)(4), the word ``issued'' is omitted as surplus. The
text of 49 App.:1602(a)(4)(E) (3d sentence) is omitted as executed. The
text of 49 App.:1602(a)(4)(E) (4th and last sentences) is omitted as
obsolete.
In subsection (h), the words ``nature and extent of'' are omitted as
surplus. The words ``net project cost'' are substituted for ``what
portion of the cost of a project to be assisted under section 1602 of
this Appendix cannot be reasonably financed from revenues--which portion
shall hereinafter be called `net project cost' '' because of the
definition of ``net project cost'' in section 5302(a) of the revised
title. The words ``Except as provided in paragraph (2) of this
subsection'' are added for clarity. The words ``Such remainder may be
provided in whole or in part from other than public sources and any
public or private'', ``solely'', and ``at any time'' are omitted as
surplus. The words ``shall be deemed'' are omitted as unnecessary since
the text is a statement of a legal conclusion.
In subsection (i), before clause (1), the words ``Except for a loan
under subsection (b) of this section'' are added for clarity. The words
``made under this section'' and ``at a rate'' are omitted as surplus. In
clause (1), the word ``market'' is omitted as surplus. In clause (2),
the words ``under the program'' are omitted as surplus.
In subsection (j), the words ``loan and interest'' are substituted
for ``principal and accrued interest on the loan then outstanding'' to
eliminate unnecessary words.
In subsection (m)(1)(B) and (3), the word ``existing'' is added for
clarity and consistency.
In subsection (m)(1), before clause (A), the words ``Subject to
paragraph (3)'' are omitted as surplus. The reference to fiscal year
1992 is omitted as obsolete.
In subsection (m)(3), before clause (A), the words ``Not later than
30 days after April 2, 1987'' are omitted as executed. The words
``prepare and'' are omitted as surplus. The text of 49 App.:1602(j)(1)
is omitted as obsolete because 49 App.:1602(k)(1) was restated by
section 3006(d)(1) of the Intermodal Surface Transportation Efficiency
Act of 1991 (Public Law 102-240, 105 Stat. 2089) and clause (D) was not
carried forward.
In subsection (m)(4), the text of 49 App.:1602(k)(2)(B) is omitted
as expired.
In subsection (n)(2), the words ``Subject to the provisions of this
paragraph'', ``the Federal share of which the Secretary is authorized to
pay under this subsection'', and ``actually'' are omitted as surplus.
Pub. L. 104-287, Sec. 5(12)(A)
This amends 49:5309(a) to clarify the restatement of 49
App.:1602(a)(1) by section 1 of the Act of July 5, 1994 (Public Law 103-
272, 108 Stat. 800).
Pub. L. 104-287, Sec. 5(12)(B)
This amends 49:5309(e)(4)(B) to correct an erroneous cross-
reference.
Pub. L. 104-287, Sec. 5(12)(C)
This amends 49:5309(m)(1)(A) to make a conforming amendment.
References in Text
The date of enactment of the Federal Transit Act of 1998, referred
to in subsecs. (e)(5), (8)(D) and (o)(1)(B), is the date of enactment of
title III of Pub. L. 105-178, which was approved June 9, 1998.
The Clean Air Act, referred to in subsec. (e)(8)(B)(ii), is act July
14, 1955, ch. 360, 69 Stat. 322, as amended, which is classified
generally to chapter 85 (Sec. 7401 et seq.) of Title 42, The Public
Health and Welfare. For complete classification of this Act to the Code,
see Short Title note set out under section 7401 of Title 42 and Tables.
The National Environmental Policy Act of 1969, referred to in
subsec. (g)(3)(A), is Pub. L. 91-190, Jan. 1, 1970, 83 Stat. 852, as
amended, which is classified generally to chapter 55 (Sec. 4321 et seq.)
of Title 42, The Public Health and Welfare. For complete classification
of this Act to the Code, see Short Title note set out under section 4321
of Title 42 and Tables.
Section 3032(g)(2) of the Intermodal Surface Transportation
Efficiency Act of 1991, referred to in subsec. (g)(4)(F), is section
3032(g)(2) of Pub. L. 102-240, title III, Dec. 18, 1991, 105 Stat. 2125,
which is not classified to the Code.
Section 103 of title 23, referred to in subsec. (n)(1), was amended
generally by Pub. L. 105-178, title I, Sec. 1106(b), June 9, 1998, 112
Stat. 131, and, as so amended, no longer contains a subsec. (e)(4).
Amendments
2003--Subsec. (m)(1). Pub. L. 108-88, Sec. 8(a)(1), inserted ``and
for the period of October 1, 2003, through February 29, 2004'' after
``2003''.
Subsec. (m)(2)(B). Pub. L. 108-88, Sec. 8(a)(2), added cl. (iii).
Subsec. (m)(3)(B). Pub. L. 108-88, Sec. 8(a)(3), inserted ``(and
$1,250,000 shall be available for the period October 1, 2003, through
February 29, 2004)'' after ``2003''.
Subsec. (m)(3)(C). Pub. L. 108-88, Sec. 8(a)(4), inserted ``(and
$20,833,334 shall be available for the period October 1, 2003, through
February 29, 2004)'' after ``2003''.
2000--Subsec. (g)(4). Pub. L. 106-346 designated existing provisions
as subpar. (A) and added subpars. (B) to (G).
Subsec. (g)(4)(D)(2). Pub. L. 106-554 struck out ``light'' before
``rail extension''.
1999--Subsec. (g)(1)(B). Pub. L. 106-69 inserted ``and the House and
Senate Committees on Appropriations'' after ``Committee on Banking,
Housing, and Urban Affairs of the Senate''.
1998--Pub. L. 105-178, Sec. 3009(a), substituted ``Capital
investment'' for ``Discretionary'' in section catchline.
Subsec. (a)(1)(E) to (H). Pub. L. 105-178, Sec. 3009(c), added
subpars. (E) and (F), redesignated former subpars. (F) and (G) as (G)
and (H), respectively, and struck out former subpar. (E) which read as
follows: ``transportation projects that enhance urban economic
development or incorporate private investment, including commercial and
residential development, because the projects--
``(i) enhance the effectiveness of a mass transportation project
and are related physically or functionally to that mass
transportation project; or
``(ii) establish new or enhanced coordination between mass
transportation and other transportation;''.
Subsec. (c). Pub. L. 105-178, Sec. 3009(d), amended subsec. (c)
generally, substituting ``[Reserved.]'' for former heading and text
which read as follows:
``(c) Consideration of Decreased Commuter Rail Transportation.--The
Secretary of Transportation shall consider the adverse effect of
decreased commuter rail transportation when deciding whether to approve
a grant or loan under this section to acquire a rail line and all
related facilities--
``(1) owned by a rail carrier subject to reorganization under
title 11; and
``(2) used to provide commuter rail transportation.''
Subsec. (e). Pub. L. 105-178, Sec. 3009(k)(1), as added by Pub. L.
105-206, Sec. 9009(g), in par. (3)(C), substituted ``suburban sprawl''
for ``urban sprawl'', and in par. (6), substituted ``or `not
recommended', based'' for ``or not `recommended', based'' in second
sentence and inserted ``of the'' before ``criteria established'' in last
sentence.
Pub. L. 105-178, Sec. 3009(e), reenacted heading without change and
amended text of subsec. (e) generally. Prior to amendment, subsec. (e)
related to, in par. (1), applicability of subsection to projects, in
par. (2), approval of grants or loans for capital projects, in par. (3),
criteria for making approval decisions, in par. (4), issuance of
guidelines on evaluation of alternatives, project justification, and
degree of local financial commitment, in par. (5), advancement of
project from alternatives analysis to preliminary engineering, in par.
(6), exemptions from requirements of subsection, and in par. (7),
requirement of full financing agreement.
Subsec. (f). Pub. L. 105-178, Sec. 3009(h)(1), amended subsec. (f)
generally, substituting ``[Reserved.]'' for former heading and text
which read as follows:
``(f) Required Payments and Eligible Costs of Projects That Enhance
Urban Economic Development or Incorporate Private Investment.--(1) Each
grant or loan under subsection (a)(5) of this section shall require that
a person making an agreement to occupy space in a facility pay a
reasonable share of the costs of the facility through rental payments
and other means.
``(2) Eligible costs for a project under subsection (a)(5) of this
section--
``(A) include property acquisition, demolition of existing
structures, site preparation, utilities, building foundations,
walkways, open space, and a capital project for, and improving,
equipment or a facility for an intermodal transfer facility or
transportation mall; but
``(B) do not include construction of a commercial revenue-
producing facility or a part of a public facility not related to
mass transportation.''
Subsec. (g). Pub. L. 105-178, Sec. 3009(f)(1), substituted
``Funding'' for ``Financing'' in heading.
Subsec. (g)(1)(B). Pub. L. 105-178, Sec. 3009(f)(3), substituted
``At least 60 days'' for ``At least 30 days'' and ``letter or agreement.
The Secretary shall include with the notification a copy of the proposed
letter or agreement as well as the evaluations and ratings for the
project'' for ``issuance of the letter'' and inserted ``or entering into
a full funding grant agreement'' after ``subparagraph (A) of this
paragraph''.
Subsec. (g)(2)(A), (B), (3)(A)(i). Pub. L. 105-178, Sec. 3009(f)(2),
substituted ``full funding'' for ``full financing''.
Subsec. (g)(4). Pub. L. 105-178, Sec. 3009(k)(2), as added by Pub.
L. 105-206, Sec. 9009(g), substituted ``5338(b) of this title for new
fixed guideway systems and extensions to existing fixed guideway systems
and the amount appropriated under section 5338(h)(5) or an amount
equivalent to the last 2 fiscal years of funding authorized under
section 5338(b) for new fixed guideway systems and extensions to
existing fixed guideway systems'' for ``5338(a) of this title to carry
out this section or an amount equivalent to the total authorizations
under section 5338(b) for new fixed guideway systems and extensions to
existing fixed guideway systems for fiscal years 2002 and 2003''.
Pub. L. 105-178, Sec. 3009(f)(2), (4), substituted ``full funding''
for ``full financing'' before ``grant agreements'' in two places and
``an amount equivalent to the total authorizations under section 5338(b)
for new fixed guideway systems and extensions to existing fixed guideway
systems for fiscal years 2002 and 2003'' for ``50 percent of the
uncommitted cash balance remaining in the Mass Transit Account of the
Highway Trust Fund (including amounts received from taxes and interest
earned that are more than amounts previously obligated)''.
Subsec. (m). Pub. L. 105-178, Sec. 3009(k)(3), as added by Pub. L.
105-206, Sec. 9009(g), substituted ``5338(b)'' for ``5338'' in
introductory provisions of par. (1), added par. (2) and struck out
former par. (2) relating to limitation on amounts available for
activities other than final design and construction, redesignated par.
(4) as (3)(C), added pars. (3)(D) and (4), and struck out par. (5)
relating to funding for ferry boat systems.
Pub. L. 105-178, Sec. 3009(g), reenacted heading without change and
amended text of subsec. (m) generally, substituting provisions
allocating amounts for fiscal years 1998 to 2003 for provisions
allocating amounts for each fiscal year ending Sept. 30 from 1993 to
1997 and for period of Oct. 1, 1997 to Mar. 31, 1998.
Subsec. (n)(2). Pub. L. 105-178, Sec. 3009(h)(3)(D), as added by
Pub. L. 105-206, Sec. 9009(h)(3), substituted ``in a manner
satisfactory'' for ``in a way satisfactory''.
Subsec. (o). Pub. L. 105-178, Sec. 3009(i), added subsec. (o)
relating to reports.
Subsec. (p). Pub. L. 105-178, Sec. 3009(j), added subsec. (p).
1997--Subsec. (m)(1). Pub. L. 102-240, Sec. 3049(a), as added by
Pub. L. 105-130, inserted ``, and for the period of October 1, 1997,
through March 31, 1998'' after ``1997''.
1996--Subsec. (a). Pub. L. 104-287, Sec. 5(12)(A), designated
existing provisions as par. (1), redesignated former pars. (1) to (7) as
subpars. (A) to (G) of par. (1), respectively, and former subpars. (A)
and (B) of par. (5) as subcls. (i) and (ii) of subpar. (E),
respectively, and added par. (2).
Subsec. (e)(4)(B). Pub. L. 104-287, Sec. 5(12)(B), substituted
``paragraph (2)'' for ``paragraph (1)(B)''.
Subsec. (g)(1)(B). Pub. L. 104-287, Sec. 5(9), substituted
``Transportation and Infrastructure'' for ``Public Works and
Transportation''.
Subsec. (m)(1)(A). Pub. L. 104-287, Sec. 5(12)(C), inserted ``rail''
before ``fixed guideway modernization''.
Subsec. (m)(3). Pub. L. 104-287, Sec. 5(9), substituted
``Transportation and Infrastructure'' for ``Public Works and
Transportation''.
Effective Date of 1998 Amendment
Title IX of Pub. L. 105-206 effective simultaneously with enactment
of Pub. L. 105-178 and to be treated as included in Pub. L. 105-178 at
time of enactment, and provisions of Pub. L. 105-178, as in effect on
day before July 22, 1998, that are amended by title IX of Pub. L. 105-
206 to be treated as not enacted, see section 9016 of Pub. L. 105-206,
set out as a note under section 101 of Title 23, Highways.
Effective Date of 1996 Amendment
Amendment by section 5(12) of Pub. L. 104-287 effective July 5,
1994, see section 8(1) of Pub. L. 104-287, set out as a note under
section 5303 of this title.
Report to Congress on Use of Funds Under Pub. L. 105-178
Pub. L. 105-200, title IV, Sec. 403(b), July 16, 1998, 112 Stat.
670, provided that: ``Not later than 2 years after the date of the
enactment of this Act [July 16, 1998], the Secretary of Transportation,
in consultation with the Secretary of Health and Human Services, shall
submit to the Committees on Ways and Means and on Transportation and
Infrastructure of the House of Representatives and the Committees on
Finance and on Environment and Public Works of the Senate a report
that--
``(1) describes the manner in which funds made available under
section 3037 of the Transportation Equity Act for the 21st Century
[Pub. L. 105-178, set out as a note below] have been used;
``(2) describes whether such uses of such funds has improved
transportation services for low-income individuals; and
``(3) contains such other relevant information as may be
appropriate.''
Dollar Value of Mobility Improvements
Pub. L. 105-178, title III, Sec. 3010, June 9, 1998, 112 Stat. 357,
as amended by Pub. L. 105-206, title IX, Sec. 9009(i), July 22, 1998,
112 Stat. 856, provided that:
``(a) In General.--The Secretary [of Transportation] shall not
consider the dollar value of mobility improvements, as specified in the
report required under section 5309(o) (as added by this Act), in
evaluating projects under section 5309 of title 49, United States Code,
in developing regulations, or in carrying out any other duty of the
Secretary.
``(b) Study.--
``(1) In general.--The Comptroller General shall conduct a study
of the dollar value of mobility improvements and the relationship of
mobility improvements to the overall transportation justification of
a new fixed guideway system or extension to an existing system.
``(2) Report.--Not later than January 1, 2000, the Comptroller
General shall transmit to the Committee on Transportation and
Infrastructure of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate a report on the
results of the study under paragraph (1), including an analysis of
the factors relevant to determining the dollar value of mobility
improvements.''
Job Access and Reverse Commute Grants
Pub. L. 105-178, title III, Sec. 3037, June 9, 1998, 112 Stat. 387,
as amended by Pub. L. 105-206, title IX, Sec. 9009(w), July 22, 1998,
112 Stat. 862; Pub. L. 108-88, Sec. 8(l), Sept. 30, 2003, 117 Stat.
1124, provided that:
``(a) Findings.--Congress finds that--
``(1) two-thirds of all new jobs are in the suburbs, whereas
three-quarters of welfare recipients live in rural areas or central
cities;
``(2) even in metropolitan areas with excellent public transit
systems, less than half of the jobs are accessible by transit;
``(3) in 1991, the median price of a new car was equivalent to
25 weeks of salary for the average worker, and considerably more for
the low-income worker;
``(4) not less than 9,000,000 households and 10,000,000
Americans of driving age, most of whom are low-income workers, do
not own cars;
``(5) 94 percent of welfare recipients do not own cars;
``(6) nearly 40 percent of workers with annual incomes below
$10,000 do not commute by car;
``(7) many of the 2,000,000 Americans who will have their
Temporary Assistance to Needy Families grants (under the State
program funded under part A of title IV of the Social Security Act
(42 U.S.C. 601 et seq.)) terminated by the year 2002 will be unable
to get to jobs they could otherwise hold;
``(8) increasing the transit options for low-income workers,
especially those who are receiving or who have recently received
welfare benefits, will increase the likelihood of those workers
getting and keeping jobs; and
``(9) many residents of cities and rural areas would like to
take advantage of mass transit to gain access to suburban employment
opportunities.
``(b) Definitions.--In this section, the following definitions shall
apply:
``(1) Eligible low-income individual.--The term `eligible low-
income individual' means an individual whose family income is at or
below 150 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
family of the size involved.
``(2) Eligible project and related terms.--
``(A) In general.--The term `eligible project' means an
access to jobs project or a reverse commute project.
``(B) Access to jobs project.--The term `access to jobs
project' means a project relating to the development of
transportation services designed to transport welfare recipients
and eligible low-income individuals to and from jobs and
activities related to their employment. The Secretary [of
Transportation] may make access to jobs grants for--
``(i) capital projects and to finance operating costs of
equipment, facilities, and associated capital maintenance
items related to providing access to jobs under this
section;
``(ii) promoting the use of transit by workers with
nontraditional work schedules;
``(iii) promoting the use by appropriate agencies of
transit vouchers for welfare recipients and eligible low-
income individuals under specific terms and conditions
developed by the Secretary; 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 [26
U.S.C. 132].
``(C) Reverse commute project.--The term `reverse commute
project' means a project related to the development of
transportation services designed to transport residents of urban
areas, urbanized areas, and areas other than urbanized areas to
suburban employment opportunities, including any project to--
``(i) subsidize the costs associated with adding reverse
commute bus, train, carpool, van routes, or service from
urban areas, urbanized areas, and areas other than urbanized
areas, to suburban workplaces;
``(ii) subsidize the purchase or lease by a nonprofit
organization or public agency of a van or bus dedicated to
shuttling employees from their residences to a suburban
workplace; or
``(iii) otherwise facilitate the provision of mass
transportation services to suburban employment
opportunities.
``(3) Existing transportation service providers.--The term
`existing transportation service providers' means mass
transportation operators and governmental agencies and nonprofit
organizations that receive assistance from Federal, State, or local
sources for nonemergency transportation services.
``(4) Qualified entity.--The term `qualified entity' means--
``(A) with respect to any proposed eligible project in an
urbanized area with a population of at least 200,000, the
applicant or applicants selected by the appropriate metropolitan
planning organization that meets the requirements of this
section, including the planning and coordination requirements in
subsection (i), from among designated recipients under section
5307(a)(2) of title 49, United States Code, local governmental
authorities and agencies, and nonprofit organizations; and
``(B) with respect to any proposed eligible project in an
urbanized area with a population of less than 200,000, or an
area other than an urbanized area, the applicant or applicants
selected by the chief executive officer of the State in which
the area is located that meets the requirements of this section,
including the planning and coordination requirements in
subsection (i), from among designated recipients under section
5307(a)(2) of title 49, United States Code, local governmental
authorities and agencies, and nonprofit organizations.
``(5) Welfare recipient.--The term `welfare recipient' means an
individual who receives or received aid or assistance under a State
program funded under part A of title IV of the Social Security Act
[42 U.S.C. 601 et seq.] (whether in effect before or after the
effective date of the amendments made by title I of the Personal
Responsibility and Work Opportunity Reconciliation Act of 1996
(Public Law 104-193; 110 Stat. 2110) [see Effective Date note set
out under 42 U.S.C. 601]) at any time during the 3-year period
before the date on which the applicant applies for a grant under
this section.
``(c) General Authority.--
``(1) In general.--The Secretary may make access to jobs grants
and reverse commute grants under this section to assist qualified
entities in financing eligible projects.
``(2) Coordination.--The Secretary shall coordinate activities
under this section with related activities under programs of other
Federal departments and agencies.
``(d) Applications.--Each qualified entity seeking to receive a
grant under this section for an eligible project shall submit to the
Secretary an application in such form and in accordance with such
requirements as the Secretary shall establish.
``(e) Prohibition.--Grants awarded under this section may not be
used for planning or coordination activities.
``(f) Factors for Consideration.--In awarding grants under this
section to applicants under subsection (d), the Secretary shall
consider--
``(1) the percentage of the population in the area to be served
by the applicant that are welfare recipients;
``(2) in the case of an applicant seeking assistance to finance
an access to jobs project, the need for additional services
(including bicycling) in the area to be served by the applicant to
transport welfare recipients and eligible low-income individuals to
and from specified jobs, training, and other employment support
services, and the extent to which the proposed services will address
those needs;
``(3) the extent to which the applicant demonstrates--
``(A) coordination with, and the financial commitment of,
existing transportation service providers; and
``(B) coordination with the State agency that administers
the State program funded under part A of title IV of the Social
Security Act [42 U.S.C. 601 et seq.];
``(4) the extent to which the applicant demonstrates maximum
utilization of existing transportation service providers and expands
transit networks or hours of service, or both;
``(5) the extent to which the applicant demonstrates an
innovative approach that is responsive to identified service needs;
``(6) the extent to which the applicant--
``(A) in the case of an applicant seeking assistance to
finance an access to jobs project, presents a regional
transportation plan for addressing the transportation needs of
welfare recipients and eligible low-income individuals; and
``(B) identifies long-term financing strategies to support
the services under this section;
``(7) the extent to which the applicant demonstrates that the
community to be served has been consulted in the planning process;
and
``(8) in the case of an applicant seeking assistance to finance
a reverse commute project, the need for additional services
identified in a regional transportation plan to transport
individuals to suburban employment opportunities, and the extent to
which the proposed services will address those needs.
``(g) Competitive Grant Selection.--The Secretary shall conduct a
national solicitation for applications for grants under this section.
Grantees shall be selected on a competitive basis.
``(h) Cost Sharing.--
``(1) Maximum amount.--The amount of a grant under this section
may not exceed 50 percent of the total project cost.
``(2) Nongovernmental share.--
``(A) In general.--The portion of the total cost of an
eligible project that is not funded under this section--
``(i) shall be provided in cash from sources other than
revenues from providing mass transportation, but may include
amounts received under a service agreement; and
``(ii) may be derived from amounts appropriated to or
made available to a department or agency of the Federal
Government (other than the Department of Transportation)
that are eligible to be expended for transportation.
``(B) Inapplicability.--For purposes of subparagraph
(A)(ii), the prohibitions on the use of funds for matching
requirements under section 403(a)(5)(C)(vi) of the Social
Security Act [42 U.S.C. 603(a)(5)(C)(vi)] shall not apply to
Federal or State funds to be used for transportation services.
``(i) Planning Requirements.--
``(1) In general.--The requirements of sections 5303 through
5306 of title 49, United States Code, apply to any grant made under
this section.
``(2) Coordination.--Each application for a grant under this
section shall reflect coordination with and the approval of affected
transit grant recipients. The eligible access to jobs projects
financed under this section shall be part of a coordinated public
transit-human services transportation planning process.
``(j) Grant Requirements.--A grant under this section shall be
subject to--
``(1) all of the terms and conditions to which a grant made
under section 5307 of title 49, United States Code, is subject; and
``(2) such other terms and conditions as are determined by the
Secretary.
``(k) Program Evaluation.--
``(1) Comptroller general.--Beginning 6 months after the date of
enactment of this Act [June 9, 1998], and every 6 months thereafter,
the Comptroller General of the United States shall--
``(A) conduct a study to evaluate the grant program
authorized under this section; and
``(B) 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
describing the results of each study under subparagraph (A).
``(2) Department of transportation.--Not later than 2 years
after the date of enactment of this Act, the Secretary shall--
``(A) conduct a study to evaluate the access to jobs grant
program authorized under this section; and
``(B) 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
describing the results of the study under subparagraph (A).
``(l) Authorization and Allocation.--
``(1) In general.--
``(A) From the trust fund.--There shall be available from
the Mass Transit Account of the Highway Trust Fund to carry out
this section--
``(i) $40,000,000 for fiscal year 1999;
``(ii) $60,000,000 for fiscal year 2000;
``(iii) $80,000,000 for fiscal year 2001;
``(iv) $100,000,000 for fiscal year 2002;
``(v) $120,000,000 for fiscal year 2003; and
``(vi) $50,519,167 for the period of October 1, 2003,
through February 29, 2004.
``(B) From the general fund.--In addition to amounts made
available under subparagraph (A), there are authorized to be
appropriated to carry out this section--
``(i) $10,000,000 for fiscal year 1999;
``(ii) $15,000,000 for fiscal year 2000;
``(iii) $20,000,000 for fiscal year 2001;
``(iv) $25,000,000 for fiscal year 2002;
``(v) $30,000,000 for fiscal year 2003; and
``(vi) $12,638,333 for the period of October 1, 2003,
through February 29, 2004.
``(C) Additional amounts.--In addition to amounts made
available under subparagraphs (A) and (B) under the
Transportation Discretionary Spending Guarantee for the Mass
Transit Category, there are authorized to be appropriated to
carry out this section--
``(i) $100,000,000 for fiscal year 1999;
``(ii) $75,000,000 for fiscal year 2000;
``(iii) $50,000,000 for fiscal year 2001; and
``(iv) $25,000,000 for fiscal year 2002.
``(2) Set-aside for reverse commute projects.--Of amounts made
available by or appropriated under subparagraphs (A) and (B) of
paragraph (1) to carry out this section in each fiscal year, not
more than $10,000,000 shall be used for grants for reverse commute
projects; except that in the period of October 1, 2003, through
February 29, 2004, $4,166,667 shall be used for such projects.
``(3) Allocation.--The amounts made available by or appropriated
under paragraph (1) to carry out this section in each fiscal year
shall be allocated as follows:
``(A) 60 percent shall be allocated for eligible projects in
urbanized areas with populations of at least 200,000.
``(B) 20 percent shall be allocated for eligible projects in
urbanized areas with populations of less than 200,000.
``(C) 20 percent shall be allocated for eligible projects in
areas other than urbanized areas.''
Encouragement of Adversely Affected Industries To Compete for Contracts
Pub. L. 91-453, Sec. 10, Oct. 15, 1970, 84 Stat. 968, as amended by
Pub. L. 102-240, title III, Sec. 3003(b), Dec. 18, 1991, 105 Stat. 2088,
provided that: ``The Secretary of Transportation shall in all ways
(including the provision of technical assistance) encourage industries
adversely affected by reductions in Federal Government spending on
space, military, and other Federal projects to compete for the contracts
provided for under sections 3 and 6 of the Federal Transit Act (49
U.S.C. 1602 and 1605) [now 49 U.S.C. 5309 and 5312], as amended by this
Act.''
Section Referred to in Other Sections
This section is referred to in sections 5301, 5310, 5315, 5318,
5319, 5320, 5323, 5324, 5327, 5328, 5331, 5333, 5334, 5337, 5338 of this
title; title 42 sections 3013, 3338.
