URBANIZED AREA FORMULA GRANTS.

SEC. 3004. URBANIZED AREA FORMULA GRANTS. Section 5307 of title 49, United States Code, is amended— (1) in subsection (a)— (A) in paragraph (2) by inserting “or demand response service, excluding ADA complementary paratransit service,” before “during” each place it appears; and (B) by adding at the end the following: “(3) Exception to the special rule.—Notwithstanding paragraph (2), if a public transportation system described in such paragraph executes a written agreement with 1 or more other public transportation systems within the urbanized area to allocate funds for the purposes described in the paragraph by a method other than by measuring vehicle revenue hours, each public transportation system that is a party to the written agreement may follow the terms of the written agreement without regard to measured vehicle revenue hours referred to in the paragraph.” ; and (2) in subsection (c)(1)— (A) in subparagraph (C), by inserting “in accordance with the recipient’s transit asset management plan” after “equipment and facilities”; and (B) in subparagraph (K), by striking “Census—” and all that follows through clause (ii) and inserting the following: “Census, will submit an annual report listing projects carried out in the preceding fiscal year under this section for associated transit improvements as defined in section 5302; and”.