49 USC 5307 - Urbanized area formula grants

(a) Definitions.— 
In this section, the following definitions apply:
(1) Associated capital maintenance items.— 
The term associated capital maintenance items means
(A) equipment, tires, tubes, and material, each costing at least .5 percent of the current fair market value of rolling stock comparable to the rolling stock for which the equipment, tires, tubes, and material are to be used; and
(B) reconstruction of equipment and material, each of which after reconstruction will have a fair market value of at least .5 percent of the current fair market value of rolling stock comparable to the rolling stock for which the equipment and material will be used.

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(2) Designated recipient.— 
The term designated recipient means
(A) an entity designated, in accordance with the planning process under sections 5303, 5304, and 5306, by the chief executive officer of a State, responsible local officials, and publicly owned operators of public transportation, to receive and apportion amounts under section 5336 that are attributable to transportation management areas identified under section 5303; or
(B) a State or regional authority if the authority is responsible under the laws of a State for a capital project and for financing and directly providing public transportation.
(b) General Authority.— 

(1) Grants.— 
The Secretary may make grants under this section for
(A) capital projects and associated capital maintenance items;
(B) planning;
(C) transit enhancements;
(D) operating costs of equipment and facilities for use in public transportation in an urbanized area with a population of less than 200,000;
(E) operating costs of equipment and facilities for use in public transportation in a portion or portions of an urbanized area with a population of at least 200,000, but not more than 225,000, if

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(i) the urbanized area includes parts of more than one State;
(ii) the portion of the urbanized area includes only one State;
(iii) the population of the portion of the urbanized area is less than 30,000; and
(iv) the grants will not be used to provide public transportation outside of the portion of the urbanized area; and
(F) operating costs of equipment and facilities for use in public transportation for local governmental authorities in areas which adopted transit operating and financing plans that became a part of the Houston, Texas, urbanized area as a result of the 2000 decennial census of population, but lie outside the service area of the principal public transportation agency that serves the Houston urbanized area.
(2) Special rule for fiscal years 2005 through 2007.— 

(A) Increased flexibility.— 
The Secretary may award grants under this section, from funds made available to carry out this section for each of the fiscal years 2005 through 2007, to finance the operating cost of equipment and facilities for use in mass transportation in an urbanized area with a population of at least 200,000, as determined by the 2000 decennial census of population, if
(i) the urbanized area had a population of less than 200,000, as determined by the 1990 decennial census of population;
(ii) a portion of the urbanized area was a separate urbanized area with a population of less than 200,000, as determined by the 1990 decennial census of population;
(iii) the area was not designated as an urbanized area, as determined by the 1990 decennial census of population; or
(iv) a portion of the area was not designated as an urbanized area, as determined by the 1990 decennial census, and received assistance under section 5311 in fiscal year 2002.
(B) Maximum amounts in fiscal year 2005.— 
In fiscal year 2005
(i) amounts made available to any urbanized area under clause (i) or (ii) of subparagraph (A) shall be not more than the amount apportioned in fiscal year 2002 to the urbanized area with a population of less than 200,000, as determined in the 1990 decennial census of population;
(ii) amounts made available to any urbanized area under subparagraph (A)(iii) shall be not more than the amount apportioned to the urbanized area under this section for fiscal year 2003; and
(iii) each portion of any area not designated as an urbanized area, as determined by the 1990 decennial census, and eligible to receive funds under subparagraph (A)(iv), shall receive an amount of funds to carry out this section that is not less than the amount the portion of the area received under section 5311 for fiscal year 2002.
(C) Maximum amounts in fiscal year 2006.— 
In fiscal year 2006
(i) amounts made available to any urbanized area under clause (i) or (ii) of subparagraph (A) shall be not more than 50 percent of the amount apportioned in fiscal year 2002 to the urbanized area with a population of less than 200,000, as determined in the 1990 decennial census of population;
(ii) amounts made available to any urbanized area under subparagraph (A)(iii) shall be not more than 50 percent of the amount apportioned to the urbanized area under this section for fiscal year 2003; and
(iii) each portion of any area not designated as an urbanized area, as determined by the 1990 decennial census, and eligible to receive funds under subparagraph (A)(iv), shall receive an amount of funds to carry out this section that is not less than 50 percent of the amount the portion of the area received under section 5311 for fiscal year 2002.
(D) Maximum amounts in fiscal year 2007.— 
In fiscal year 2007
(i) amounts made available to any urbanized area under clause (i) or (ii) of subparagraph (A) shall be not more than 25 percent of the amount apportioned in fiscal year 2002 to the urbanized area with a population of less than 200,000, as determined in the 1990 decennial census of population;
(ii) amounts made available to any urbanized area under subparagraph (A)(iii) shall be not more than 25 percent of the amount apportioned to the urbanized area under this section for fiscal year 2003; and
(iii) each portion of any area not designated as an urbanized area, as determined by the 1990 decennial census, and eligible to receive funds under subparagraph (A)(iv), shall receive an amount of funds to carry out this section that is not less than 25 percent of the amount the portion of the area received under section 5311 in fiscal year 2002.
(3) In a transportation management area designated under section 5305 (a) of this title,[1] amounts that cannot be used to pay operating expenses under this section also are available for a highway project if
(A) that use is approved, in writing, by the metropolitan planning organization under section 5303 of this title after appropriate notice and an opportunity for comment and appeal is provided to affected public transportation providers;
(B) the Secretary decides the amounts are not needed for investment required by the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.); and
(C) the metropolitan planning organization in approving the use under subparagraph (A) determines that the local transit needs are being addressed.
(c) Public Participation Requirements.— 
Each recipient of a grant shall
(1) make available to the public information on amounts available to the recipient under this section and the program of projects the recipient proposes to undertake;
(2) develop, in consultation with interested parties, including private transportation providers, a proposed program of projects for activities to be financed;
(3) publish a proposed program of projects in a way that affected citizens, private transportation providers, and local elected officials have the opportunity to examine the proposed program and submit comments on the proposed program and the performance of the recipient;
(4) provide an opportunity for a public hearing in which to obtain the views of citizens on the proposed program of projects;
(5) ensure that the proposed program of projects provides for the coordination of public transportation services assisted under section 5336 of this title with transportation services assisted from other United States Government sources;
(6) consider comments and views received, especially those of private transportation providers, in preparing the final program of projects; and
(7) make the final program of projects available to the public.
(d) Grant Recipient Requirements.— 
A recipient may receive a grant in a fiscal year only if
(1) the recipient, within the time the Secretary prescribes, submits a final program of projects prepared under subsection (c) of this section and a certification for that fiscal year that the recipient (including a person receiving amounts from a chief executive officer of a State under this section)
(A) has or will have the legal, financial, and technical capacity to carry out the program, including safety and security aspects of the program;
(B) has or will have satisfactory continuing control over the use of equipment and facilities;
(C) will maintain equipment and facilities;
(D) will ensure that elderly and handicapped individuals, or an individual presenting a medicare card issued to that individual under title II or XVIII of the Social Security Act (42 U.S.C. 401 et seq., 1395 et seq.), will be charged during non-peak hours for transportation using or involving a facility or equipment of a project financed under this section not more than 50 percent of the peak hour fare;
(E) in carrying out a procurement under this section
(i) will use competitive procurement (as defined or approved by the Secretary);
(ii) will not use a procurement that uses exclusionary or discriminatory specifications;
(iii) will comply with applicable Buy America laws in carrying out a procurement; and
(iv) will comply with sections 5323 and 5325;
(F) has complied with subsection (c) of this section;
(G) has available and will provide the required amounts as provided by subsection (e) of this section;
(H) will comply with section 5301 (a), section 5301(d), and sections 5303 through 5306;
(I) has a locally developed process to solicit and consider public comment before raising a fare or carrying out a major reduction of transportation;
(J) 
(i) will expend for each fiscal year for public transportation security projects, including increased lighting in or adjacent to a public transportation system (including bus stops, subway stations, parking lots, and garages), increased camera surveillance of an area in or adjacent to that system, providing an emergency telephone line to contact law enforcement or security personnel in an area in or adjacent to that system, and any other project intended to increase the security and safety of an existing or planned public transportation system, at least one percent of the amount the recipient receives for each fiscal year under section 5336 of this title; or
(ii) has decided that the expenditure for security projects is not necessary; and
(K) in the case of a recipient for an urbanized area with a population of at least 200,000
(i) will expend not less than 1 percent of the amount the recipient receives each fiscal year under this section for transit enhancements, as defined in section 5302 (a); and
(ii) will submit an annual report listing projects carried out in the preceding fiscal year with those funds; and
(2) the Secretary accepts the certification.
(e) Government’s Share of Costs.— 

(1) Capital projects.— 
A grant for a capital project (including associated capital maintenance items) under this section shall be for 80 percent of the net project cost of the project. The recipient may provide additional local matching amounts.
(2) Operating expenses.— 
A grant for operating expenses under this section may not exceed 50 percent of the net project cost of the project.
(3) Remaining costs.— 
Subject to paragraph (4), the remainder of the net project cost shall be provided
(A) in cash from non-Government sources other than revenues from providing public transportation services;
(B) from revenues derived from the sale of advertising and concessions;
(C) from an undistributed cash surplus, a replacement or depreciation cash fund or reserve, or new capital; and
(D) from amounts received under a service agreement with a State or local social service agency or private social service organization.
(4) Use of certain funds.— 
The prohibitions on the use of funds for matching requirements under section 403(a)(5)(C)(vii) of the Social Security Act (42 U.S.C. 603 (a)(5)(C)(vii)) shall not apply to the remainder.
(f) Statewide Operating Assistance.— 

(1) A State authority that is a designated recipient and providing public transportation in at least 2 urbanized areas may apply for operating assistance in an amount not more than the amount for all urbanized areas in which it provides transportation.
(2) When approving an application under paragraph (1) of this subsection, the Secretary may not reduce the amount of operating assistance approved for another State or a local transportation authority within the affected urbanized areas.
(g) Undertaking Projects in Advance.— 

(1) When a recipient obligates all amounts apportioned to it under section 5336 of this title and then carries out a part of a project described in this section (except a project for operating expenses) without amounts of the Government and according to all applicable procedures and requirements (except to the extent the procedures and requirements limit a State to carrying out a project with amounts of the Government previously apportioned to it), the Secretary may pay to the recipient the Governments share of the cost of carrying out that part when additional amounts are apportioned to the recipient under section 5336 if
(A) the recipient applies for the payment;
(B) the Secretary approves the payment; and
(C) before carrying out that part, the Secretary approves the plans and specifications for the part in the same way as for other projects under this section.
(2) The Secretary may approve an application under paragraph (1) of this subsection only if an authorization for this section is in effect for the fiscal year to which the application applies. The Secretary may not approve an application if the payment will be more than
(A) the recipients expected apportionment under section 5336 of this title if the total amount authorized to be appropriated for the fiscal year to carry out this section is appropriated; less
(B) the maximum amount of the apportionment that may be made available for projects for operating expenses under this section.
(3) The cost of carrying out that part of a project includes the amount of interest earned and payable on bonds issued by the recipient to the extent proceeds of the bonds are expended in carrying out the part. However, the amount of interest allowed under this paragraph may not be more than the most favorable financing terms reasonably available for the project at the time of borrowing. The applicant shall certify, in a manner satisfactory to the Secretary, that the applicant has shown reasonable diligence in seeking the most favorable financing terms.
(h) Reviews, Audits, and Evaluations.— 

(1) 
(A) At least annually, the Secretary shall carry out, or require a recipient to have carried out independently, reviews and audits the Secretary considers appropriate to establish whether the recipient has carried out
(i) the activities proposed under subsection (d) of this section in a timely and effective way and can continue to do so; and
(ii) those activities and its certifications and has used amounts of the Government in the way required by law.
(B) An audit of the use of amounts of the Government shall comply with the auditing procedures of the Comptroller General.
(2) At least once every 3 years, the Secretary shall review and evaluate completely the performance of a recipient in carrying out the recipients program, specifically referring to compliance with statutory and administrative requirements and the extent to which actual program activities are consistent with the activities proposed under subsection (d) of this section and the planning process required under sections 5303–5306 of this title. To the extent practicable, the Secretary shall coordinate such reviews with any related State or local reviews.
(3) The Secretary may take appropriate action consistent with a review, audit, and evaluation under this subsection, including making an appropriate adjustment in the amount of a grant or withdrawing the grant.
(i) Procurement System Approval.— 
A recipient may request the Secretary to approve its procurement system. The Secretary shall approve the system for use for procurements financed under section 5336 of this title if, after consulting with the Administrator for Federal Procurement Policy, the Secretary decides the system provides for competitive procurement. Approval of a system under this subsection does not relieve a recipient of the duty to certify under subsection (d)(1)(E) of this section.
(j) Operating Ferries Outside Urbanized Areas.— 
A vessel used in ferryboat operations financed under section 5336 of this title that is part of a State-operated ferry system may be operated occasionally outside the urbanized area in which service is provided to accommodate periodic maintenance if existing ferry service is not reduced significantly by operating outside the area.
(k) Relationship to Other Laws.— 

(1) Applicable provisions.— 
Sections 5301, 5302, 5303, 5304, 5306, 5315 (c), 5318, 5319, 5323, 5325, 5327, 5329, 5330, 5331, 5332, 5333, and 5335 apply to this section and to any grant made under this section.
(2) Inapplicable provisions.— 

(A) In general.— 
Except as provided by this section, no other provision of this chapter applies to this section or to a grant made under this section.
(B) Title 5.— 
The provision of assistance under this chapter shall not be construed as bringing within the application of chapter 15 of title 5 any nonsupervisory employee of a public transportation system (or any other agency or entity performing related functions) to which such chapter is otherwise inapplicable.
(l) Treatment.— 
For the purposes of this section, the United States Virgin Islands shall be treated as an urbanized area, as defined in section 5302.
[1] See References in Text note below.