Sec. 21006. Fixed guideway capital investment grants
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Section 5309 of title 49, United States Code, is amended— in subsection (a)— in paragraph (3), by striking and weekend days ; in paragraph (6)— in subparagraph (A), by inserting , small start projects, after new fixed guideway capital projects ; and by striking subparagraph
(B)and inserting the following: 2 or more projects that are any combination of new fixed guideway capital projects, small start projects, and core capacity improvement projects. ; and in paragraph (7)— in subparagraph (A), by striking $75,000,000 and inserting $100,000,000 ; and in subparagraph (B), by striking $250,000,000 and inserting $300,000,000 ; in subsection (d)— in paragraph (1)(B), by striking , policies and land use patterns that promote public transportation, ; and in paragraph (2)(A)— in clause (iii), by adding and at the end; by striking clause (iv); and by redesignating clause
(v)as clause (iv); in subsection (g)(2)(A)(i), by striking , the policies and land use patterns that support public transportation, ; in subsection (i)— in paragraph (1), by striking subsection
(d)or
(e)and inserting subsection (d), (e), or
(h); in paragraph (2)— in the matter preceding subparagraph (A), by inserting new fixed guideway capital project or core capacity improvement after federally funded ; by striking subparagraph
(D)and inserting the following: the program of interrelated projects, when evaluated as a whole— meets the requirements of subsection (d)(2), subsection (e)(2), or paragraphs
(3)and
(4)of subsection (h), as applicable, if the program is comprised entirely of— new fixed guideway capital projects; core capacity improvement projects; or small start projects; or meets the requirements of subsection (d)(2) if the program is comprised of any combination of new fixed guideway projects, small start projects, and core capacity improvement projects; ; and in subparagraph (F), by inserting or (h)(5), as applicable after subsection
(f); and in paragraph (3), by striking subparagraph
(A)and inserting the following: A project receiving a grant under this section that is part of a program of interrelated projects may not advance— in the case of a small start project, from the project development phase to the construction phase unless the Secretary determines that the program of interrelated projects meets the applicable requirements of this section and there is a reasonable likelihood that the program will continue to meet such requirements; or in the case of a new fixed guideway capital project or a core capacity improvement project, from the project development phase to the engineering phase, or from the engineering phase to the construction phase, unless the Secretary determines that the program of interrelated projects meets the applicable requirements of this section and there is a reasonable likelihood that the program will continue to meet such requirements. ; and by adding at the end the following: The Secretary may make grants for new fixed guideway capital projects and core capacity improvement projects that provide both public transportation and intercity passenger rail service. Eligible costs for a project under this subsection shall be limited to the net capital costs of the public transportation costs attributable to the project based on projected use of the new segment or expanded capacity of the project corridor, not including project elements designed to achieve or maintain a state of good repair, as determined by the Secretary under paragraph (4). A project under this subsection shall be evaluated for project justification and local financial commitment under subsections (d), (e), (f), and (h), as applicable to the project, based on— the net capital costs of the public transportation costs attributable to the project as determined under paragraph (4); and the share of funds dedicated to the project from sources other than this section included in the unified finance plan for the project. The Secretary shall estimate the net capital costs of a project under this subsection based on— engineering studies; studies of economic feasibility; the expected use of equipment or facilities; and the public transportation costs attributable to the project. The Government share shall not exceed 80 percent of the net capital cost attributable to the public transportation costs of a project under this subsection as determined under paragraph (4). The remainder of the net capital cost attributable to the public transportation costs of a project under this subsection shall be provided from an undistributed cash surplus, a replacement or depreciation cash fund or reserve, or new capital. . In this subsection, the following definitions shall apply: The term applicant means a State or local governmental authority that applies for a grant under this subsection. The terms capital project , fixed guideway , local governmental authority , public transportation , State , and state of good repair have the meanings given those terms in section 5302 of title 49, United States Code. The term core capacity improvement project — means a substantial corridor-based capital investment in an existing fixed guideway system that increases the capacity of a corridor by not less than 10 percent; and may include project elements designed to aid the existing fixed guideway system in making substantial progress towards achieving a state of good repair. The term corridor-based bus rapid transit project means a small start project utilizing buses in which the project represents a substantial investment in a defined corridor as demonstrated by features that emulate the services provided by rail fixed guideway public transportation systems— including— defined stations; traffic signal priority for public transportation vehicles; short headway bidirectional services for a substantial part of weekdays; and any other features the Secretary may determine support a long-term corridor investment; and the majority of which does not operate in a separated right-of-way dedicated for public transportation use during peak periods. The term eligible project means a new fixed guideway capital project, a small start project, or a core capacity improvement project that has not entered into a full funding grant agreement with the Federal Transit Administration before the date of enactment of this Act. The term fixed guideway bus rapid transit project means a bus capital project— in which the majority of the project operates in a separated right-of-way dedicated for public transportation use during peak periods; that represents a substantial investment in a single route in a defined corridor or subarea; and that includes features that emulate the services provided by rail fixed guideway public transportation systems, including— defined stations; traffic signal priority for public transportation vehicles; short headway bidirectional services for a substantial part of weekdays and weekend days; and any other features the Secretary may determine are necessary to produce high-quality public transportation services that emulate the services provided by rail fixed guideway public transportation systems. The term new fixed guideway capital project means— a fixed guideway project that is a minimum operable segment or extension to an existing fixed guideway system; or a fixed guideway bus rapid transit project that is a minimum operable segment or an extension to an existing bus rapid transit system. The term recipient means a recipient of funding under chapter 53 of title 49, United States Code. The term small start project means a new fixed guideway capital project, a fixed guideway bus rapid transit project, or a corridor-based bus rapid transit project for which— the Federal assistance provided or to be provided under this subsection is less than $75,000,000; and the total estimated net capital cost is less than $300,000,000. The Secretary may make grants under this subsection to States and local governmental authorities to assist in financing— new fixed guideway capital projects or small start projects, including the acquisition of real property, the initial acquisition of rolling stock for the system, the acquisition of rights-of-way, and relocation, for projects in the advanced stages of planning and design; and core capacity improvement projects, including the acquisition of real property, the acquisition of rights-of-way, double tracking, signalization improvements, electrification, expanding system platforms, acquisition of rolling stock associated with corridor improvements increasing capacity, construction of infill stations, and such other capacity improvement projects as the Secretary determines are appropriate to increase the capacity of an existing fixed guideway system corridor by not less than 10 percent. Core capacity improvement projects do not include elements to improve general station facilities or parking, or acquisition of rolling stock alone. The Secretary may make not more than 10 grants under this subsection for an eligible project if the Secretary determines that— the eligible project is part of an approved transportation plan required under sections 5303 and 5304 of title 49, United States Code; the applicant has, or will have— the legal, financial, and technical capacity to carry out the eligible project, including the safety and security aspects of the eligible project; satisfactory continuing control over the use of the equipment or facilities; the technical and financial capacity to maintain new and existing equipment and facilities; and advisors providing guidance to the applicant on the terms and structure of the project that are independent from investors in the project; the eligible project is supported, or will be supported, in part, through a public-private partnership, provided such support is determined by local policies, criteria, and decisionmaking under section 5306(a) of title 49, United States Code; the eligible project is justified based on findings presented by the project sponsor to the Secretary, including— mobility improvements attributable to the project; environmental benefits associated with the project; congestion relief associated with the project; economic development effects derived as a result of the project; and estimated ridership projections; and the eligible project is supported by an acceptable degree of local financial commitment (including evidence of stable and dependable financing sources). An applicant that has submitted the certifications required under subparagraphs (A), (B), (C), and
(H)of section 5307(c)(1) of title 49, United States Code, shall be deemed to have provided sufficient information upon which the Secretary may make the determinations required under this paragraph. The Secretary shall use an expedited technical capacity review process for applicants that have recently and successfully completed not less than 1 new fixed guideway capital project, small start project, or core capacity improvement project, if— the applicant achieved budget, cost, and ridership outcomes for the project that are consistent with or better than projections; and the applicant demonstrates that the applicant continues to have the staff expertise and other resources necessary to implement a new project. In determining whether an eligible project is supported by an acceptable degree of local financial commitment and shows evidence of stable and dependable financing sources for purposes of subparagraph (A)(v), the Secretary shall require that— each proposed source of capital and operating financing is stable, reliable, and available within the proposed eligible project timetable; and resources are available to recapitalize, maintain, and operate the overall existing and proposed public transportation system, including essential feeder bus and other services necessary, without degradation to the existing level of public transportation services. In assessing the stability, reliability, and availability of proposed sources of financing under clause (i), the Secretary shall consider— the reliability of the forecasting methods used to estimate costs and revenues made by the applicant and the contractors to the applicant; existing grant commitments; the degree to which financing sources are dedicated to the proposed eligible project; any debt obligation that exists or is proposed by the applicant, for the proposed eligible project or other public transportation purpose; and private contributions to the eligible project, including cost-effective project delivery, management or transfer of project risks, expedited project schedule, financial partnering, and other public-private partnership strategies. The requirements under section 5333 of title 49, United States Code, shall apply to each recipient of a grant under this subsection. An applicant that desires a grant under this subsection and meets the requirements of paragraph
(3)shall submit to the Secretary, and the Secretary shall approve for advancement, a grant request that contains— identification of an eligible project; a schedule and finance plan for the construction and operation of the eligible project; an analysis of the efficiencies of the proposed eligible project development and delivery methods and innovative financing arrangement for the eligible project, including any documents related to the— public-private partnership required under paragraph (3)(A)(iii); and project justification required under paragraph (3)(A)(iv); and a certification that the existing public transportation system of the applicant or, in the event that the applicant does not operate a public transportation system, the public transportation system to which the proposed project will be attached, is in a state of good repair. Not later than 120 days after the date on which the Secretary receives a grant request of an applicant under paragraph (4), the Secretary shall provide written notice to the applicant— of approval of the grant request; or if the grant request does not meet the requirements under paragraph (4), of disapproval of the grant request, including a detailed explanation of the reasons for the disapproval. The Secretary shall provide concurrent notice of an approval or disapproval of a grant request under subparagraph
(A)to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives. The Secretary may grant a waiver to an applicant that does not comply with paragraph (4)(D) if— the eligible project meets the definition of a core capacity improvement project; and the Secretary certifies that the eligible project will allow the applicant to make substantial progress in achieving a state of good repair. The Secretary may enter into a full funding grant agreement with an applicant under this subsection for an eligible project for which an application has been submitted and approved for advancement by the Secretary under paragraph (4), only if the applicant has completed the planning and activities required under the National Environmental Policy Act of 1969 ( 42 U.S.C. 4321 et seq. ). The Secretary may issue a letter of intent to an applicant announcing an intention to obligate, for an eligible project under this subsection, 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 eligible project. When a letter is issued for an eligible project under this subsection, the amount shall be sufficient to complete at least an operable segment. The issuance of a letter under clause
(i)is deemed not to be an obligation under section 1108(c), 1501, or 1502(a) of title 31, United States Code, or an administrative commitment. Except as provided in clause (v), an eligible project shall be carried out under this subsection through a full funding grant agreement. The Secretary shall enter into a full funding grant agreement, based the requirements of this subparagraph, with each applicant receiving assistance for an eligible project that has received a written notice of approval under paragraph (5)(A)(i). A full funding grant agreement shall— establish the terms of participation by the Federal Government in the eligible project; establish the maximum amount of Federal financial assistance for the eligible project; include the period of time for completing construction of the eligible project, consistent with the terms of the public-private partnership agreement, even if that period extends beyond the period of an authorization; and make timely and efficient management of the eligible project easier according to the law of the United States. A full funding grant agreement under this subparagraph 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 subparagraph, to obligate an additional amount from future available budget authority specified in law. A full funding grant agreement shall state that the contingent commitment is not an obligation of the Federal Government. Interest and other financing costs of efficiently carrying out a part of the eligible project within a reasonable time are a cost of carrying out the eligible 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 eligible 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. The amount stipulated in an agreement under this subparagraph for a new fixed guideway capital project, core capacity improvement project, or small start project shall be sufficient to complete at least an operable segment. The Secretary, to the maximum extent practicable, shall provide Federal assistance under this subsection for a small start project in a single grant. If the Secretary cannot provide such a single grant, the Secretary may execute an expedited grant agreement in order to include a commitment on the part of the Secretary to provide funding for the project in future fiscal years. In executing an expedited grant agreement under this clause, the Secretary may include in the agreement terms similar to those established under clause (iii). The Secretary may enter into full funding grant agreements under this paragraph for eligible projects that contain contingent commitments to incur obligations in such amounts as the Secretary determines are appropriate. An obligation may be made under this paragraph only when amounts are appropriated for obligation. Not later than 30 days before the date on which the Secretary issues a letter of intent or enters into a full funding grant agreement for an eligible project under this paragraph, the Secretary shall notify, in writing, the Committee on Banking, Housing, and Urban Affairs and the Committee on Appropriations of the Senate and the Committee on Transportation and Infrastructure and the Committee on Appropriations of the House of Representatives of the proposed letter of intent or full funding grant agreement. The written notification under clause
(i)shall include a copy of the proposed letter of intent or full funding grant agreement for the eligible project. A grant for an eligible project shall not exceed 25 percent of the net capital project cost. The remainder of the net capital project cost shall be provided from an undistributed cash surplus, a replacement or depreciation cash fund or reserve, or new capital. Nothing in this subsection shall be construed as authorizing the Secretary to require a non-Federal financial commitment for a project that is more than 75 percent of the net capital project cost. In addition to amounts allowed pursuant to subparagraph (A), 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 provided by the Federal 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 Federal Government is made at the same time. If an applicant does not carry out an eligible project for reasons within the control of the applicant, the applicant shall repay all Federal funds awarded for the eligible project from all Federal funding sources, for all eligible project activities, facilities, and equipment, plus reasonable interest and penalty charges allowable by law. Any funds received by the Federal Government under this paragraph, other than interest and penalty charges, shall be credited to the appropriation account from which the funds were originally derived. An amount made available for an eligible project shall remain available to that eligible project for 5 fiscal years, including the fiscal year in which the amount is made available. Any amounts that are unobligated to the eligible project at the end of the 5-fiscal-year period may be used by the Secretary for any purpose under this subsection. An amount available under this subsection that is deobligated may be used for any purpose under this subsection. Not later than the first Monday in February of each year, the Secretary shall submit to the Committee on Banking, Housing, and Urban Affairs and the Committee on Appropriations of the Senate and the Committee on Transportation and Infrastructure and the Committee on Appropriations of the House of Representatives a report that includes a proposed amount to be available to finance grants for anticipated projects under this subsection. Each recipient shall conduct a study that— describes and analyzes the impacts of the eligible project on public transportation services and public transportation ridership; describes and analyzes the consistency of predicted and actual benefits and costs of the innovative project development and delivery methods or innovative financing for the eligible project; and identifies reasons for any differences between predicted and actual outcomes for the eligible project. Not later than 2 years after an eligible project that is selected under this subsection begins revenue operations, the recipient shall submit to the Secretary a report on the results of the study conducted under subparagraph (A). Nothing in this subsection shall be construed to— require the privatization of the operation or maintenance of any project for which an applicant seeks funding under this subsection; revise the determinations by local policies, criteria, and decisionmaking under section 5306(a) of title 49, United States Code; alter the requirements for locally developed, coordinated, and implemented transportation plans under sections 5303 and 5304 of title 49, United States Code; or alter the eligibilities or priorities for assistance under this subsection or section 5309 of title 49, United States Code.
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Sec. 21006
Fixed guideway capital investment grants
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