49 U.S.C. § 5339 - Grants for buses and bus facilities

Cite as49 U.S.C. § 5339


(1) DEFINITIONS.-In this subsection-

(A) the term "low or no emission vehicle" has the meaning given that term in subsection (c)(1);

(B) the term "State" means a State of the United States; and

(C) the term "territory" means the District of Columbia, Puerto Rico, the Northern Mariana Islands, Guam, American Samoa, and the United States Virgin Islands.

(2) GENERAL AUTHORITY.-The Secretary may make grants under this subsection to assist eligible recipients described in paragraph (4)(A) in financing capital projects-

(A) to replace, rehabilitate, and purchase buses and related equipment, including technological changes or innovations to modify low or no emission vehicles or facilities; and

(B) to construct bus-related facilities.

(3) GRANT REQUIREMENTS.-The requirements of-

(A) section 5307 shall apply to recipients of grants made in urbanized areas under this subsection; and

(B) section 5311 shall apply to recipients of grants made in rural areas under this subsection.


(A) RECIPIENTS.-Eligible recipients under this subsection are-

(i) designated recipients that allocate funds to fixed route bus operators; or

(ii) State or local governmental entities that operate fixed route bus service.

(B) SUBRECIPIENTS.-A recipient that receives a grant under this subsection may allocate amounts of the grant to subrecipients that are public agencies or private nonprofit organizations engaged in public transportation.

(5) DISTRIBUTION OF GRANT FUNDS.-Funds allocated under section 5338(a)(2)(L) 1 shall be distributed as follows:

(A) NATIONAL DISTRIBUTION.-$206,000,000 each fiscal year shall be allocated to all States and territories, with each State receiving $4,000,000 for each such fiscal year and each territory receiving $1,000,000 for each such fiscal year.

(B) DISTRIBUTION USING POPULATION AND SERVICE FACTORS.-The remainder of the funds not otherwise distributed under subparagraph (A) shall be allocated pursuant to the formula set forth in section 5336 other than subsection (b).


(A) TRANSFER FLEXIBILITY FOR NATIONAL DISTRIBUTION FUNDS.-The Governor of a State may transfer any part of the State's apportionment under paragraph (5)(A) to supplement amounts apportioned to the State under section 5311(c) or amounts apportioned to urbanized areas under subsections (a) and (c) of section 5336.

(B) TRANSFER FLEXIBILITY FOR POPULATION AND SERVICE FACTORS FUNDS.-The Governor of a State may expend in an urbanized area with a population of less than 200,000 any amounts apportioned under paragraph (5)(B) that are not allocated to designated recipients in urbanized areas with a population of 200,000 or more.


(A) CAPITAL PROJECTS.-A grant for a capital project under this subsection shall be for 80 percent of the net capital costs of the project. A recipient of a grant under this subsection may provide additional local matching amounts.

(B) REMAINING COSTS.-The remainder of the net project cost shall be provided-

(i) in cash from non-Government sources other than revenues from providing public transportation services;

(ii) from revenues derived from the sale of advertising and concessions;

(iii) from an undistributed cash surplus, a replacement or depreciation cash fund or reserve, or new capital;

(iv) from amounts received under a service agreement with a State or local social service agency or private social service organization; or

(v) from revenues generated from value capture financing mechanisms.

(8) PERIOD OF AVAILABILITY TO RECIPIENTS.-Amounts made available under this subsection may be obligated by a recipient for 3 fiscal years after the fiscal year in which the amount is apportioned. Not later than 30 days after the end of the 3-fiscal-year period described in the preceding sentence, any amount that is not obligated on the last day of such period shall be added to the amount that may be apportioned under this subsection in the next fiscal year.


(A) IN GENERAL.-For each of fiscal years 2016 through 2020, the Secretary shall carry out a pilot program under which an eligible recipient (as described in paragraph (4)) in an urbanized area with population of not less than 200,000 and not more than 999,999 may elect to participate in a State pool in accordance with this paragraph.

(B) PURPOSE OF STATE POOLS.-The purpose of a State pool shall be to allow for transfers of formula grant funds made available under this subsection among the designated recipients participating in the State pool in a manner that supports the transit asset management plans of the designated recipients under section 5326.

(C) REQUESTS FOR PARTICIPATION.-A State, and eligible recipients in the State described in subparagraph (A), may submit to the Secretary a request for participation in the program under procedures to be established by the Secretary. An eligible recipient for a multistate area may participate in only 1 State pool.

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