Sec. 3005. FIXED GUIDEWAY CAPITAL INVESTMENT GRANTS
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## SEC. 3005 FIXED GUIDEWAY CAPITAL INVESTMENT GRANTS ###
(a)In general Section 5309 of title 49, United States Code, is amended— ####
(1)in subsection (a)— #####
(A)in paragraph (3), by striking “and weekend days”; #####
(B)in paragraph (6)— ######
(i)in subparagraph
(A)by inserting “, small start projects,” after “new fixed guideway capital projects”; and ######
(ii)by striking subparagraph
(B)and inserting the following: > > ##### “(B) > > 2 or more projects that are any combination of new fixed guideway capital projects, small start projects, and core capacity improvement projects.” > ; and #####
(C)in paragraph (7)— ######
(i)in subparagraph (A), by striking “$75,000,000” and inserting “$100,000,000”; and ######
(ii)in subparagraph (B), by striking “$250,000,000” and inserting “$300,000,000”; ####
(2)in subsection (d)— #####
(A)in paragraph (1)(B) by striking “, policies and land use patterns that promote public transportation,”; and #####
(B)in paragraph (2)(A)— ######
(i)in clause
(iii)by adding “and” after the semicolon; ######
(ii)by striking clause (iv); and ######
(iii)by redesignating clause
(v)as clause (iv); ####
(3)in subsection (g)(2)(A)(i) by striking “the policies and land use patterns that support public transportation,”; ####
(4)in subsection (h)(6)— #####
(A)by striking “ In carrying out ” and inserting the following: > > ##### “(A) In general > > In carrying out” > ; and #####
(B)by adding at the end the following: > > ##### “(B) Optional early rating > > At the request of the project sponsor, the Secretary shall evaluate and rate the project in accordance with paragraphs
(4)and
(5)and subparagraph
(A)of this paragraph upon completion of the analysis required under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).” > ; ####
(5)in subsection (i)— #####
(A)in paragraph
(1)by striking “subsection
(d)or (e)” and inserting “subsection (d), (e), or (h)”; #####
(B)in paragraph (2)— ######
(i)in the matter preceding subparagraph
(A)by inserting “new fixed guideway capital project or core capacity improvement” after “federally funded”; ######
(ii)by striking subparagraph
(D)and inserting the following: > > ##### “(D) > > the program of interrelated projects, when evaluated as a whole— > > > ###### “(i) > > 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— > > > ###### “(I) > > new fixed guideway capital projects; > > > ###### “(II) > > core capacity improvement projects; or > > > ###### “(III) > > small start projects; or > > > ###### “(ii) > > meets the requirements of subsection (d)(2) if the program is comprised of any combination of new fixed guideway capital projects, small start projects, and core capacity improvement projects;” > ; and ######
(iii)in subparagraph (F), by inserting “or subsection (h)(5), as applicable” after “subsection (f)”; and #####
(C)by striking paragraph (3)(A) and inserting the following: > > ##### “(A) Project advancement > > A project receiving a grant under this section that is part of a program of interrelated projects may not advance— > > > ###### “(i) > > 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 > > > ###### “(ii) > > 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.” > ; ####
(6)in subsection (l)— #####
(A)by striking paragraph
(1)and inserting the following: > > #### “(1) In general > > > ##### “(A) Estimation of net capital project cost > > Based on engineering studies, studies of economic feasibility, and information on the expected use of equipment or facilities, the Secretary shall estimate the net capital project cost. > > > ##### “(B) Grants > > > ###### “(i) Grant for new fixed guideway capital project > > A grant for a new fixed guideway capital project shall not exceed 80 percent of the net capital project cost. > > > ###### “(ii) Full funding grant agreement for new fixed guideway capital project > > A full funding grant agreement for a new fixed guideway capital project shall not include a share of more than 60 percent from the funds made available under this section. > > > ###### “(iii) Grant for core capacity improvement project > > A grant for a core capacity improvement project shall not exceed 80 percent of the net capital project cost of the incremental cost to increase the capacity in the corridor. > > > ###### “(iv) Grant for small start project > > A grant for a small start project shall not exceed 80 percent of the net capital project costs.” > ; and #####
(B)by striking paragraph
(4)and inserting the following: > > #### “(4) Remaining costs > > The remainder of the net capital project costs shall be provided— > > > ##### “(A) > > in cash from non-Government sources; > > > ##### “(B) > > from revenues from the sale of advertising and concessions; or > > > ##### “(C) > > from an undistributed cash surplus, a replacement or depreciation cash fund or reserve, or new capital.” > ; ####
(7)by striking subsection
(n)and inserting the following: > > ### “(n) Availability of amounts > > > #### “(1) In general > > An amount made available or appropriated for a new fixed guideway capital project or core capacity improvement project shall remain available to that project for 4 fiscal years, including the fiscal year in which the amount is made available or appropriated. Any amounts that are unobligated to the project at the end of the 4-fiscal-year period may be used by the Secretary for any purpose under this section. > > > #### “(2) Use of deobligated amounts > > An amount available under this section that is deobligated may be used for any purpose under this section.” > ; and ####
(8)by adding at the end the following: > > ### “(p) Special rule > > For the purposes of calculating the cost effectiveness of a project described in subsection
(d)or (e), the Secretary shall not reduce or eliminate the capital costs of art and non-functional landscaping elements from the annualized capital cost calculation. > > > ### “(q) Joint Public Transportation and Intercity Passenger Rail Projects > > > #### “(1) In general > > 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. > > > #### “(2) Eligible costs > > 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). > > > #### “(3) Project justification and local financial commitment > > 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— > > > ##### “(A) > > the net capital costs of the public transportation costs attributable to the project as determined under paragraph (4); and > > > ##### “(B) > > the share of funds dedicated to the project from sources other than this section included in the unified finance plan for the project. > > > #### “(4) Calculation of net capital project cost > > The Secretary shall estimate the net capital costs of a project under this subsection based on— > > > ##### “(A) > > engineering studies; > > > ##### “(B) > > studies of economic feasibility; > > > ##### “(C) > > the expected use of equipment or facilities; and > > > ##### “(D) > > the public transportation costs attributable to the project. > > > #### “(5) Government share of net capital project cost > > > ##### “(A) Government share > > 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). > > > ##### “(B) Non-government share > > 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.” > . ###
(b)Expedited Project Delivery for Capital Investment Grants Pilot Program **[**[49 U.S.C. 5309 note](/us/usc/t49/s5309)**]** ####
(1)Definitions In this subsection, the following definitions shall apply: #####
(A)Applicant The term “applicant” means a State or local governmental authority that applies for a grant under this subsection. #####
(B)Capital project; fixed guideway; local governmental authority; public transportation; state; state of good repair 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. #####
(C)Core capacity improvement project The term “core capacity improvement project”— ######
(i)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 ######
(ii)may include project elements designed to aid the existing fixed guideway system in making substantial progress towards achieving a state of good repair. #####
(D)Corridor-based bus rapid transit project 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— ######
(i)including— ######
(I)defined stations; ######
(II)traffic signal priority for public transportation vehicles; ######
(III)short headway bidirectional services for a substantial part of weekdays; and ######
(IV)any other features the Secretary may determine support a long-term corridor investment; and ######
(ii)the majority of which does not operate in a separated right-of-way dedicated for public transportation use during peak periods. #####
(E)Eligible project 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. #####
(F)Fixed guideway bus rapid transit project The term “fixed guideway bus rapid transit project” means a bus capital project— ######
(i)in which the majority of the project operates in a separated right-of-way dedicated for public transportation use during peak periods; ######
(ii)that represents a substantial investment in a single route in a defined corridor or subarea; and ######
(iii)that includes features that emulate the services provided by rail fixed guideway public transportation systems, including— ######
(I)defined stations; ######
(II)traffic signal priority for public transportation vehicles; ######
(III)short headway bidirectional services for a substantial part of weekdays and weekend days; and ######
(IV)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. #####
(G)New fixed guideway capital project The term “new fixed guideway capital project” means— ######
(i)a fixed guideway capital project that is a minimum operable segment or extension to an existing fixed guideway system; or ######
(ii)a fixed guideway bus rapid transit project that is a minimum operable segment or an extension to an existing bus rapid transit system. #####
(H)Recipient The term “recipient” means a recipient of funding under chapter 53 of title 49, United States Code. #####
(I)Small start project 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— ######
(i)the Federal assistance provided or to be provided under this subsection is less than $150,000,000; and ######
(ii)the total estimated net capital cost is less than $400,000,000. ####
(2)General Authority The Secretary may make grants under this subsection to States and local governmental authorities to assist in financing— #####
(A)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 #####
(B)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. ####
(3)Grant requirements #####
(A)In general The Secretary may make not more than 8 grants under this subsection for eligible projects if the Secretary determines that— ######
(i)the eligible project is part of an approved transportation plan required under sections 5303 and 5304 of title 49, United States Code; ######
(ii)the applicant has, or will have— ######
(I)the legal, financial, and technical capacity to carry out the eligible project, including the safety and security aspects of the eligible project; ######
(II)satisfactory continuing control over the use of the equipment or facilities; ######
(III)the technical and financial capacity to maintain new and existing equipment and facilities; and ######
(IV)advisors providing guidance to the applicant on the terms and structure of the project that are independent from investors in the project; ######
(iii)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; ######
(iv)the eligible project is justified based on findings presented by the project sponsor to the Secretary, including— ######
(I)mobility improvements attributable to the project; ######
(II)environmental benefits associated with the project; ######
(III)congestion relief associated with the project; ######
(IV)economic development effects derived as a result of the project; and ######
(V)estimated ridership projections; ######
(v)the eligible project is supported by an acceptable degree of local financial commitment (including evidence of stable and dependable financing sources); and ######
(vi)the eligible project will be operated and maintained by employees of an existing provider of fixed guideway or bus rapid transit public transportation in the service area of the project, or if none exists, by employees of an existing public transportation provider in the service area. #####
(B)Certification 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. #####
(C)Technical capacity 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— ######
(i)the applicant achieved budget, cost, and ridership outcomes for the project that are consistent with or better than projections; and ######
(ii)the applicant demonstrates that the applicant continues to have the staff expertise and other resources necessary to implement a new project. #####
(D)Financial commitment ######
(i)Requirements 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— ######
(I)each proposed source of capital and operating financing is stable, reliable, and available within the proposed eligible project timetable; and ######
(II)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. ######
(ii)Considerations In assessing the stability, reliability, and availability of proposed sources of financing under clause (i), the Secretary shall consider— ######
(I)the reliability of the forecasting methods used to estimate costs and revenues made by the applicant and the contractors to the applicant; ######
(II)existing grant commitments; ######
(III)the degree to which financing sources are dedicated to the proposed eligible project; ######
(IV)any debt obligation that exists or is proposed by the applicant, for the proposed eligible project or other public transportation purpose; and ######
(V)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. #####
(E)Labor standards The requirements under section 5333 of title 49, United States Code, shall apply to each recipient of a grant under this subsection. ####
(4)Project advancement 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— #####
(A)identification of an eligible project; #####
(B)a schedule and finance plan for the construction and operation of the eligible project; #####
(C)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— ######
(i)public-private partnership required under paragraph (3)(A)(iii); and ######
(ii)project justification required under paragraph (3)(A)(iv); and #####
(D)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. ####
(5)Written notice from the secretary #####
(A)In general 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— ######
(i)of approval of the grant request; or ######
(ii)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. #####
(B)Concurrent notice 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. ####
(6)Waiver The Secretary may grant a waiver to an applicant that does not comply with paragraph (4)(D) if— #####
(A)the eligible project meets the definition of a core capacity improvement project; and #####
(B)the Secretary certifies that the eligible project will allow the applicant to make substantial progress in achieving a state of good repair. ####
(7)Selection criteria 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.). ####
(8)Letters of intent and full funding grant agreements #####
(A)Letters of Intent ######
(i)Amounts intended to be obligated 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. ######
(ii)Treatment 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. #####
(B)Full funding grant agreements ######
(i)In general Except as provided in clause (v), an eligible project shall be carried out under this subsection through a full funding grant agreement. ######
(ii)Criteria The Secretary shall enter into a full funding grant agreement, based on 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). ######
(iii)Terms A full funding grant agreement shall— ######
(I)establish the terms of participation by the Federal Government in the eligible project; ######
(II)establish the maximum amount of Federal financial assistance for the eligible project; ######
(III)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 ######
(IV)make timely and efficient management of the eligible project easier according to the law of the United States. ######
(iv)Special financial rules ######
(I)In general 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. ######
(II)Statement of contingent commitment A full funding grant agreement shall state that the contingent commitment is not an obligation of the Federal Government. ######
(III)Interest and other financing costs 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. ######
(IV)Completion of operable segment 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. ######
(v)Exception ######
(I)In general 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. ######
(II)Terms of expedited grant agreements In executing an expedited grant agreement under this clause, the Secretary may include in the agreement terms similar to those established under clause (iii). #####
(C)Limitation on amounts ######
(i)In general 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. ######
(ii)Appropriation required An obligation may be made under this paragraph only when amounts are appropriated for obligation. #####
(D)Notification to congress ######
(i)In general Not later than 15 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. ######
(ii)Contents 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. ####
(9)Government share of net capital project cost #####
(A)In general A grant for an eligible project shall not exceed 25 percent of the net capital project cost. #####
(B)Remainder of 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. #####
(C)Limitation on statutory construction 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. #####
(D)Special rule for rolling stock costs 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. #####
(E)Failure to carry out project 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. #####
(F)Crediting of funds received 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. ####
(10)Availability of Amounts #####
(A)In general An amount made available for an eligible project shall remain available to that eligible project for 4 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 4-fiscal-year period may be used by the Secretary for any purpose under this subsection. #####
(B)Use of deobligated amounts An amount available under this subsection that is deobligated may be used for any purpose under this subsection. ####
(11)Annual report on expedited project delivery for capital investment grants 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. ####
(12)Rule of construction Nothing in this subsection shall be construed to— #####
(A)require the privatization of the operation or maintenance of any project for which an applicant seeks funding under this subsection; #####
(B)revise the determinations by local policies, criteria, and decisionmaking under section 5306(a) of title 49, United States Code; #####
(C)alter the requirements for locally developed, coordinated, and implemented transportation plans under sections 5303 and 5304 of title 49, United States Code; or #####
(D)alter the eligibilities or priorities for assistance under this subsection or section 5309 of title 49, United States Code.
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