§5309. Discretionary grants and loans
(a)
(1) capital projects for new fixed guideway systems, and extensions to existing fixed guideway systems, including the acquisition of real property, the initial acquisition of rolling stock for the systems, alternatives analysis related to the development of the systems, and the acquisition of rights of way, and relocation, for fixed guideway corridor development for projects in the advanced stages of alternatives analysis or preliminary engineering;
(2) capital projects, including property and improvements (except public highways other than fixed guideway facilities), needed for an efficient and coordinated mass transportation system;
(3) the capital costs of coordinating mass transportation with other transportation;
(4) the introduction of new technology, through innovative and improved products, into mass transportation;
(5) transportation projects that enhance urban economic development or incorporate private investment, including commercial and residential development, because the projects-
(A) enhance the effectiveness of a mass transportation project and are related physically or functionally to that mass transportation project; or
(B) establish new or enhanced coordination between mass transportation and other transportation;
(6) mass transportation projects planned, designed, and carried out to meet the special needs of elderly individuals and individuals with disabilities; and
(7) the development of corridors to support fixed guideway systems, including protecting rights of way through acquisition, construction of dedicated bus and high occupancy vehicle lanes and park and ride lots, and other nonvehicular capital improvements that the Secretary may decide would result in increased mass transportation usage in the corridor.
(b)
(2) The Secretary of Transportation may make a loan under paragraph (1) of this subsection for an approved project only after finding that the property reasonably is expected to be required for a mass transportation system and that it will be used for that system within a reasonable time.
(3) An applicant for a loan under this subsection shall provide a copy of the application to the planning agency for the community affected by the project at the same time the application is submitted to the Secretary of Transportation. If the planning agency submits comments to the Secretary not later than 30 days after the application is submitted, or, if the agency requests more time within those 30 days, within a period the Secretary establishes, the Secretary shall consider those comments before taking final action on the application.
(4) A loan agreement under this subsection shall provide that a capital project on the property will be started not later than 10 years after the fiscal year in which the agreement is made. If an interest in property acquired under this subsection is not used for the purpose for which it was acquired, an appraisal of the current value of the property or interest shall be made when a decision is made about the use. The decision shall be made within the 10-year period. Two-thirds of the increase in value shall be paid to the Secretary of Transportation for deposit in the Treasury as miscellaneous receipts.
(5) A loan under this subsection must be repaid not later than 10 years after the date of the loan agreement or on the date a grant agreement for a capital project on the property is made, whichever is earlier. Payments made to repay the loan shall be deposited in the Treasury as miscellaneous receipts.
(c)
(1) owned by a rail carrier subject to reorganization under title 11; and
(2) used to provide commuter rail transportation.
(d)
(1) has or will have the legal, financial, and technical capacity to carry out the project, satisfactory continuing control over the use of equipment or facilities, and the capability to maintain the equipment or facilities; and
(2) will maintain the equipment or facilities.
(e)
(A) for which a letter of intent or contract for the complete amount is issued under subsection (g) of this section after April 1, 1987; or
(B) not in the preliminary engineering, final design, or construction stage on January 1, 1987.
(2) The Secretary of Transportation 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 decides that the proposed project is-
(A) based on the results of an alternatives analysis and preliminary engineering;
(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.
(3) In making a decision under paragraph (2) of this subsection, the Secretary of Transportation shall-
(A) consider the direct and indirect costs of relevant alternatives;
(B) account for costs related to factors such as congestion relief, improved mobility, air pollution, noise pollution, congestion, energy consumption, and all associated ancillary and mitigation costs necessary to carry out each alternative analyzed;
(C) identify and consider mass transportation supportive existing land use policies and future patterns;
(D) consider the degree to which the project increases the mobility of the mass transportation dependent population or promotes economic development; and
(E) consider other factors the Secretary considers appropriate to carry out this chapter.
(4)(A) The Secretary of Transportation shall issue guidelines on how the Secretary will evaluate results of alternatives analysis, project justification, and the degree of local financial commitment.
(B) The project justification under paragraph (1)(B) of this subsection shall be adjusted to reflect differences in local land, construction, and operating costs.
(C) The degree of local financial commitment is acceptable only if-
(i) the proposed project plan provides for the availability of contingency amounts the Secretary of Transportation determines to be reasonable to cover unanticipated cost overruns;
(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.
(D) In assessing the stability, reliability, and availability of proposed sources of local financing, the Secretary of Transportation shall consider-
(i) existing grant commitments;
(ii) the degree to which financing sources are dedicated to the purposes proposed; and
(iii) any debt obligation that exists or is proposed by the recipient for the proposed project or other mass transportation purpose.
(5) A proposed project may advance from alternatives analysis to preliminary engineering only if the Secretary of Transportation finds that the project meets the requirements of this section and there is a reasonable chance that the project will continue to meet the requirements at the end of preliminary engineering.
(6)(A) 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-
(i) the project is located in an extreme or severe nonattainment area and is a transportation control measure (as defined by the Clean Air Act (42 U.S.C. 7401 et seq.)) required to carry out an approved State Implementation Plan; or
(ii) assistance provided under this section is less than $25,000,000 or one-third of the total cost of the project or an appropriate program of projects as decided by the Secretary of Transportation.
(B) The simultaneous evaluation of projects in at least 2 corridors in a metropolitan area may not be limited and the Secretary of Transportation 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 that is not an extreme or severe 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) This subsection does not apply to a part of a project (including a commuter rail transportation project on an existing right of way) financed completely with amounts for highways made available under part A of title I of the Intermodal Surface Transportation Efficiency Act of 1991 (
(7) A project financed under this subsection shall be carried out through a full financing grant agreement.
(f)
(2) Eligible costs for a project under subsection (a)(5) of this section-
(A) include property acquisition, demolition of existing structures, site preparation, utilities, building foundations, walkways, open space, and a capital project for, and improving, equipment or a facility for an intermodal transfer facility or transportation mall; but
(B) do not include construction of a commercial revenue-producing facility or a part of a public facility not related to mass transportation.
(g)
(B) At least 30 days before issuing a letter under subparagraph (A) of this paragraph, the Secretary of Transportation shall notify in writing the Committee on Public Works and Transportation of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate of the proposed issuance of the letter.
(C) The issuance of a letter is deemed not to be an obligation under sections 1108(c) and (d), 1501, and 1502(a) of title 31 or an administrative commitment.
(D) An obligation or administrative commitment may be made only when amounts are appropriated.
(2)(A) The Secretary of Transportation may make a full financing grant agreement with an applicant. The agreement shall-
(i) establish the terms of participation by the United States Government in a project under this section;
(ii) establish the maximum amount of Government financial assistance for the project;
(iii) cover the period of time for completing the project, including a period extending beyond the period of an authorization; and
(iv) make timely and efficient management of the project easier according to the law of the United States.
(B) An agreement under this paragraph 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 paragraph, to obligate an additional amount from future available budget authority specified in law. The agreement shall state that the contingent commitment is not an obligation of the Government. Interest and other financing costs of efficiently carrying out a part of the project within a reasonable time are a cost of carrying out the project under a full financing grant agreement, except that eligible costs may not be more than the cost of the most favorable financing terms reasonably available for the project at the time of borrowing. The applicant shall certify, in a way satisfactory to the Secretary of Transportation, that the applicant has shown reasonable diligence in seeking the most favorable financing terms. The amount stipulated in an agreement under this paragraph for a fixed guideway project shall be sufficient to complete at least an operable segment.
(3)(A) The Secretary of Transportation may make an early systems work agreement with an applicant if a record of decision under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) has been issued on the project and the Secretary finds there is reason to believe-
(i) a full financing grant agreement for the project will be made; and
(ii) the terms of the work agreement will promote ultimate completion of the project more rapidly and at less cost.
(B) A work agreement under this paragraph obligates an amount of available budget authority specified in law and shall provide for reimbursement of preliminary costs of carrying out the project, including land acquisition, timely procurement of system elements for which specifications are decided, and other activities the Secretary of Transportation decides are appropriate to make efficient, long-term project management easier. A work agreement shall cover the period of time the Secretary considers appropriate. The period may extend beyond the period of current authorization. Interest and other financing costs of efficiently carrying out the work agreement within a reasonable time are a cost of carrying out the agreement, except that eligible costs may not be more than the cost of the most favorable financing terms reasonably available for the 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. If an applicant does not carry out the project for reasons within the control of the applicant, the applicant shall repay all Government payments made under the work agreement plus reasonable interest and penalty charges the Secretary establishes in the agreement.
(4) The total estimated amount of future obligations of the Government and contingent commitments to incur obligations covered by all outstanding letters of intent, full financing grant agreements, and early systems work agreements may be not more than the greater of the amount authorized under section 5338(a) of this title to carry out this section or 50 percent of the uncommitted cash balance remaining in the Mass Transit Account of the Highway Trust Fund (including amounts received from taxes and interest earned that are more than amounts previously obligated), less an amount the Secretary of Transportation reasonably estimates is necessary for grants under this section not covered by a letter. The total amount covered by new letters and contingent commitments included in full financing grant agreements and early systems work agreements may be not more than a limitation specified in law.
(h)
(i)
(1) a rate the Secretary of the Treasury establishes, considering the current average yield on outstanding marketable obligations of the Government that have remaining periods of maturity comparable to the average maturity of the loan, adjusted to the nearest .125 percent; plus
(2) an allowance the Secretary of Transportation considers adequate to cover administrative costs and probable losses.
(j)
(k)
(l)
(m)
(A) 40 percent is available for fixed guideway modernization;
(B) 40 percent is available for capital projects for new fixed guideway systems and extensions to existing fixed guideway systems; and
(C) 20 percent is available to replace, rehabilitate, and buy buses and related equipment and to construct bus-related facilities.
(2) At least 5.5 percent of the amounts available in each fiscal year under paragraph (1)(C) of this subsection is available for areas other than urbanized areas.
(3) Not later than January 20 of each year, the Secretary of Transportation shall submit to the Committee on Public Works and Transportation of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate 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.
(4) A person applying for, or receiving, assistance for a project described in clause (A), (B), or (C) of paragraph (1) of this subsection may receive assistance for a project described in another of those clauses.
(n)
(A) the State or local governmental authority applies for the payment;
(B) the Secretary approves the payment; and
(C) before carrying out the part of the project, the Secretary approves the plans and specifications for the part in the same way as other projects under this section or section 103(e)(4) of title 23.
(2) The cost of carrying out part of a project includes the amount of interest earned and payable on bonds issued by the State or local governmental authority to the extent proceeds of the bonds are expended in carrying out the part. However, the amount of interest under this paragraph may not be more than the most favorable interest terms reasonably available for the project at the time of borrowing. The applicant shall certify, in a way satisfactory to the Secretary of Transportation, that the applicant has shown reasonable diligence in seeking the most favorable financial terms.
(3) The Secretary of Transportation shall consider changes in capital project cost indices when determining the estimated cost under paragraph (2) of this subsection.
(o)
(
In subsection (a), before clause (1), the words "in accordance with the provisions of this chapter" are omitted as surplus. The words "and on such terms and conditions as the Secretary may prescribe" and 49 App.:1602(a)(1)(D) (3d sentence) are omitted as unnecessary because of section 5334(a) of the revised title and 49:322(a). The words "(directly, through the purchase of securities or equipment trust certificates, or otherwise)" and "and agencies thereof" are omitted as surplus. In clause (1), the word "detailed" is omitted as surplus. In clause (2), the words "capital projects" are substituted for "the acquisition, construction, reconstruction, and improvement of facilities and equipment for use, by operation or lease or otherwise, in mass transportation service" for clarity and consistency in this section. The words "Eligible facilities and equipment may include personal property such as buses and other rolling stock, and rail and bus facilities, and real" are omitted as surplus. The text of 49 App.:1602(a)(1)(B) (last sentence) is omitted as obsolete because former 49 App.:1604(a)(4) is executed and is not included in this restatement. In clause (3), the words "the capital costs of" are added for clarity and consistency in this section. The words "highway and" are omitted as surplus.
In subsection (b)(1), the word "finance" is omitted as surplus.
In subsection (b)(2), the words "for real property acquisition" are omitted as surplus. The words "for an approved project" are added for clarity and consistency. The words "which shall be in lieu of the determination required by subparagraph (A)", "real", and "connection with" are omitted as surplus.
In subsection (b)(3), the word "comprehensive" is omitted as surplus. The words "by the project" are added for clarity. The words "a period of" and "longer" are omitted as surplus.
In subsection (b)(4), the words "a period not exceeding" and "Each agreement shall provide that" are omitted as surplus. The words "shall be made within the 10-year period" are substituted for "shall not be later than 10 years following the fiscal year in which the agreement is made" to eliminate unnecessary words. The words "if any, over the original cost of the real property" are omitted as surplus. The words "deposit in" are substituted for "credit to" for consistency in the revised title and with other titles of the United States Code.
In subsection (b)(5), the word "actual" is omitted as surplus. The words "deposited in" are substituted for "credited to" for consistency in the revised title and with other titles of the Code.
In subsection (c), before clause (1), the words "grant or loan" are substituted for "assistance" for consistency in the revised section. In clause (1), the words "rail carrier" are substituted for "railroad" for consistency in the revised title and with other titles of the Code.
In subsection (d), before clause (1), the words "Except as provided in subsections (b)(2) and (e) of this section" are added for clarity. In clause (1), the words "through operation or lease or otherwise" are omitted as surplus.
In subsection (e)(2), before clause (A), the word "existing" is added for clarity and consistency.
In subsection (e)(6)(C), the words "Part A of title I of the Intermodal Surface Transportation Efficiency Act of 1991 (
In subsection (f)(1), the words "or entity" are omitted as surplus.
In subsection (f)(2), before clause (A), the words "for a project under subsection (a)(5) of this section" are added for clarity. In clause (B), the words "whether publicly or privately owned" are omitted as surplus.
In subsection (g)(1)(A), the words "The letter shall be regarded as an intention to obligate" are omitted as surplus.
In subsection (g)(1)(D), the words "pursuant to such a letter of intent" are omitted as surplus.
In subsection (g)(2)(A)(i), the words "and conditions" are omitted as being included in "terms".
In subsection (g)(4), the word "issued" is omitted as surplus. The text of 49 App.:1602(a)(4)(E) (3d sentence) is omitted as executed. The text of 49 App.:1602(a)(4)(E) (4th and last sentences) is omitted as obsolete.
In subsection (h), the words "nature and extent of" are omitted as surplus. The words "net project cost" are substituted for "what portion of the cost of a project to be assisted under section 1602 of this Appendix cannot be reasonably financed from revenues-which portion shall hereinafter be called 'net project cost' " because of the definition of "net project cost" in section 5302(a) of the revised title. The words "Except as provided in paragraph (2) of this subsection" are added for clarity. The words "Such remainder may be provided in whole or in part from other than public sources and any public or private", "solely", and "at any time" are omitted as surplus. The words "shall be deemed" are omitted as unnecessary since the text is a statement of a legal conclusion.
In subsection (i), before clause (1), the words "Except for a loan under subsection (b) of this section" are added for clarity. The words "made under this section" and "at a rate" are omitted as surplus. In clause (1), the word "market" is omitted as surplus. In clause (2), the words "under the program" are omitted as surplus.
In subsection (j), the words "loan and interest" are substituted for "principal and accrued interest on the loan then outstanding" to eliminate unnecessary words.
In subsection (m)(1)(B) and (3), the word "existing" is added for clarity and consistency.
In subsection (m)(1), before clause (A), the words "Subject to paragraph (3)" are omitted as surplus. The reference to fiscal year 1992 is omitted as obsolete.
In subsection (m)(3), before clause (A), the words "Not later than 30 days after April 2, 1987" are omitted as executed. The words "prepare and" are omitted as surplus. The text of 49 App.:1602(j)(1) is omitted as obsolete because 49 App.:1602(k)(1) was restated by section 3006(d)(1) of the Intermodal Surface Transportation Efficiency Act of 1991 (
In subsection (m)(4), the text of 49 App.:1602(k)(2)(B) is omitted as expired.
In subsection (n)(2), the words "Subject to the provisions of this paragraph", "the Federal share of which the Secretary is authorized to pay under this subsection", and "actually" are omitted as surplus.
References in Text
The Clean Air Act, referred to in subsec. (e)(6)(A)(i), (B)(ii), is act July 14, 1955, ch. 360,
Part A of title I of the Intermodal Surface Transportation Efficiency Act of 1991, referred to in subsec. (e)(6)(C), is part A (§§1001 to 1109) of title I of
The National Environmental Policy Act of 1969, referred to in subsec. (g)(3)(A), is
Change of Name
Committee on Public Works and Transportation of House of Representatives changed to Committee on Transportation and Infrastructure of House of Representatives by House Resolution No. 6, One Hundred Fourth Congress, Jan. 4, 1995.
Encouragement of Adversely Affected Industries To Compete for Contracts
Section Referred to in Other Sections
This section is referred to in sections 5301, 5310, 5319, 5320, 5323, 5324, 5327, 5328, 5331, 5333, 5334, 5337, 5338 of this title; title 42 sections 3013, 3338.