MAJOR CAPITAL INVESTMENT PROGRAM.

SEC. 3006. MAJOR CAPITAL INVESTMENT PROGRAM. (a) Elderly Persons and Persons With Disabilities.— Section 3(a)(1) is amended by striking subparagraph (E) and inserting the following new subparagraph: “(E) transit projects which are planned, designed, and carried out to meet the special needs of elderly persons and persons with disabilities; and”. (b) Corridor Development.— Section 3(a)(1) is further amended by adding at the end the following new subparagraph: “(F) the development of corridors to support fixed guideway systems, including protection of rights-of-way through acquisition, construction of dedicated bus and high occupancy vehicle lanes, construction of park and ride lots, and any other nonvehicular capital improvements that the Secretary may determine would result in increased transit usage in the corridor.”. (c) Grandfathered Letters of Intent.— This Act shall not be construed to affect the validity of any existing letter of intent, full-funding grant agreement, or letter of commitment issued under section 3(a)(4) of the Federal Transit Act before the date of the enactment of the Federal Transit Act Amendments of 1991. (d) Allocations.— Section 3(k) is amended— (1) by striking paragraph (1) and inserting the following: “(1) In general.— Subject to paragraph (3), of the amounts available for grants and loans under this section for fiscal years 1992,1993,1994,1995, 1996, and 1997— “(A) 40 percent shall be available for fixed guideway modernization; “(B) 40 percent shall be available for construction of new fixed guideway systems and extensions to fixed guideway systems; and “(C) 20 percent shall be available for the replacement, rehabilitation, and purchase of buses and related equipment and the construction of bus-related facilities.”; and (2) by adding at the end the following new paragraph: “(3) Areas other than urbanized areas.— At least 5.5 percent of the amounts available for grants and loans under subsection (k)(1)(C) for fiscal years 1992, 1993, 1994, 1995, 1996, and 1997 shall be available for areas other than urbanized areas.”. (e) Bond Interest on Advance Construction.— Section 3(1)(2)(B) is amended by striking “the excess of—” and all that follows through the period and inserting “the most favorable interest terms reasonably available for the project at the time of borrowing. The applicant shall certify, in a form satisfactory to the Secretary, that the applicant has shown due diligence in seeking the most favorable financial terms.”. (f) Federal Share.— Section 4(a) is amended— (1) by striking “75 per centum” and inserting “80 percent”; and (2) by inserting before the period at the end of the second sentence the following: “, unless the recipient of the grant requests a lower Federal grant percentage”. (g) Local Share for Certain Planned Extensions of Fixed Guideway Systems.— Section 4(a) is amended by adding at the end 105 STAT. 2090the following new sentence: “The remainder of the net project cost of a planned extension to a fixed guideway system may include the cost of rolling stock previously purchased if the applicant demonstrates to the satisfaction of the Secretary that— “(1) such purchase was made solely with non-Federal funds; and “(2) such purchase was made for use on the extension.”. (h) Fiscal Capacity Considerations.— Section 4 is amended— (1) by striking subsections (b), (c), (d), (e), (f), and (g) and redesignating subsections (h) and (i) as subsections (b) and (c), respectively; and (2) by adding at the end the following new subsection: “(d) Fiscal Capacity Considerations.— If the Secretary gives priority consideration to the funding of projects which include more than the non-Federal share required by subsection (a), the Secretary shall give equal consideration to differences in the fiscal capacity of State and local governments.”.