CAPITAL INVESTMENT GRANTS AND LOANS.

SEC. 3009. CAPITAL INVESTMENT GRANTS AND LOANS. (a) Section Heading.— Section 5309 is amended in the section heading by striking “Discretionary” and inserting “Capital investment.”. (b) Conforming Amendment.— The item relating to section 5309 in the table of sections for chapter 53 is amended by striking “Discretionary” and inserting “Capital investment”. (c) General Authority.— Section 5309(a)(1) is amended— (1) by redesignating subparagraphs (F) and (G) as subparagraphs (G) and (H), respectively; and (2) by striking subparagraph (E) and inserting the following: “(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;”. (d) Consideration of Decreased Commuter Rail Transportation.— Section 5309(c) is amended to read as follows: “(c) [Reserved.]”. (e) Criteria for Grants and Loans for Fixed Guideway Systems.— Section 5309(e) is amended to read as follows: “(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;112 STAT. 353 “(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 urban 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;112 STAT. 354 “(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 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 112 STAT. 355completely 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) Letters of Intent and Full Funding Grant Agreements.— Section 5309(g) is amended— (1) in the subsection heading by striking “financing” and inserting “funding”; (2) by striking “full financing” each place it appears and inserting “full funding”; (3) in paragraph (1)(B)— (A) by striking “30 days” and inserting “60 days”; (B) by inserting before the first comma “or entering into a full funding grant agreement”; and (C) by striking “issuance of the letter.” and inserting ”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.”; and (4) in paragraph (4), by striking “50 percent” and all that follows through “obligated)” and inserting “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”. (g) Allocating Amounts.— Section 5309(m) is amended to read as follows: “(m) Allocating Amounts.— “(1) In general.— Of the amounts made available by or appropriated under section 5338 for grants and loans under this section for each of fiscal years 1998 through 2003— “(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) 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 (1XB) shall be available for activities other than final design and construction. “(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 to carry out section 5318. “(4) Funding for clean fuels.— Of the amounts made available under paragraph (1)(C), $50,000,000 shall be available 112 STAT. 356in each of fiscal years 1999 through 2003 to carry out section 5308. “(5) Funding for ferry boat systems.— “(A) 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 fixed guideway systems that are ferry boats or ferry terminal facilities, or that are approaches to ferry terminal facilities. “(B) 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 fixed guideway systems that are ferry boats or ferry terminal facilities, or that are approaches to ferry terminal facilities.”. (h) Conforming Amendments.— (1) Repeal.— Section 5309(f) is amended to read as follows: “(f) [Reserved.]”. (2) Cross reference.— Section 5328(a)(2) is amended by striking “5309(e)(1)-(6) of this title” and inserting “5309(e)”. (3) References to full funding grant agreements.— Chapter 53 is amended— (A) in section 5320— (i) by striking “full financing” each place it appears and inserting “full funding”; and (ii) in subsection (e) in the subsection heading, by striking “Financing” and inserting “Funding”; and (B) in section 5328(a)(4) by striking “full financing” each place it appears and inserting “full funding”. (i) Reports.— Section 5309 is amended by adding at the end the following: “(o) 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.112 STAT. 357 “(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 “(i) 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.”. (j) Project Defined.— Section 5309 is amended by adding at the end the following: “(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.”.