Sec. 1609. 1610. 1611. 1612. 1613. 1614. (d) Regulation of operation of system, rates, rentals, or other charges; compliance with undertakings. (e) Prohibition on use of Federal financial assistance for transfer of land, etc., between public bodies in geographical proximity. (f) Petition for exemption from interstate commerce provisions; procedure. (g) Bids for passenger seats functional specifications. Labor standards. (a) Action of Secretary. (b) Authority of Secretary of Labor. (c) Interests of employees; protective arrangements; terms and conditions. Environmental protection. (a) National policy; cooperation with other Federal departments and agencies. (b) Review of hearing transcripts. (c) Findings; inadequate record; notice and hearing. Reporting system and uniform system of accounts; development, testing, etc.; purposes; implementation; coverage as precondition for future award of grants; report to Congress. Planning and design of mass transportation facilities to meet special needs of the elderly and the handicapped. (a) Congressional declaration of policy. (c) Financing of research, development, Emergency financial assistance. (a) Purposes of reimbursement. (c) Terms and conditions; exceptions; (d) Federal share of costs of rail passenger service; duration. (e) Applicability of other statutory provisions. (f) Funding authority; authorization of appropriations for liquidation of obligations funding assistance programs. Formula grant program for areas other than urbanized areas. (a) Apportionment sums. of appropriated CHAPTER REFERRED TO IN OTHER SECTIONS This chapter is referred to in title 23 sections 103, 142; title 40 section 819; title 42 section 7506. § 1601. Declaration of findings and purposes (a) The Congress finds (1) that the predominant part of the Na tion's population is located in its rapidly expanding metropolitan and other urban areas, which generally cross the boundary lines of local jurisdictions and often extend into two or more States; (2) that the welfare and vitality of urban areas, the satisfactory movement of people and goods within such areas, and the effec tiveness of housing, urban renewal, highway, and other federally aided programs are being jeopardized by the deterioration or inad equate provision of urban transportation facilities and services, the intensification of traffic congestion, and the lack of coordinat ed transportation and other development planning on a comprehensive and continuing basis; and (3) that Federal financial assistance for the development of efficient and coordinated mass transportation systems is essential to the solution of these urban problems. (b) The purposes of this chapter are (1) to assist in the development of improved mass transportation facilities, equipment, techniques, and methods, with the cooperation of mass transportation companies both public and private; (2) to encourage the planning and establishment of areawide urban mass transportation systems needed for economical and desirable urban development, with the cooperation of mass transportation companies both public and private; and (3) to provide assistance to State and local governments and their instrumentalities in financing such systems, to be operated by public or private mass transportation companies as determined by local needs. (Pub. L. 88-365, § 2, July 9, 1964, 78 Stat. 302.) SHORT TITLE OF 1983 AMENDMENT Pub. L. 97-424, title III, § 301, Jan. 6, 1983, 96 Stat. 2140, provided that: "This title [enacting sections 1601c, 1607a, 1607a-1, 1617, and 1618 of this Appendix, amending sections 1602, 1603, 1604, 1607c, 1608, 1611, 1612, and 1614 of this Appendix, repealing sections 1604a, 1617, and 1618 of this Appendix, and enacting & provision set out as a note under section 1612 of this Appendix] may be cited as the 'Federal Public Transportation Act of 1982'." SHORT TITLE OF 1978 AMENDMENT Pub. L. 95-599, title III, § 301, Nov. 6, 1978, 92 Stat. 2735, provided that: "This title [enacting sections 1602-1, 1607, 1614, 1615, 1616, 1617 and 1618 of this Appendix, amending sections 1602, 1603, 1604, 1607b, 1607c, 1608, 1611, 1612, 1613 of this Appendix and section 1418 of Title 15, Commerce and Trade, repealing sections 1607, 1607a, and 1614 of this Appendix, and enacting provisions set out as notes under sections 1604, 1605, 1607, and 1612 of this Appendix] may be cited as the 'Federal Public Transportation Act of 1978'." SHORT TITLE OF 1974 AMENDMENT Pub. L. 93-503, § 1, Nov. 26, 1974, 88 Stat. 1566, provided "That this Act [enacting sections 1601b, 1604a, and 1604b of this Appendix, amending sections 1602, 1603, 1604, and 1611 of this Appendix and section 3303 of Title 42, The Public Health and Welfare, and enacting provisions set out as notes under section 1605 of this Appendix] may be cited as the 'National Mass Transportation Assistance Act of 1974'." SHORT TITLE OF 1970 AMENDMENT Pub. L. 91-453, § 14, Oct. 15, 1970, 84 Stat. 969, provided that: "This Act [enacting sections 1601a and 1612 of this Appendix, amending sections 1602 to 1605, 1608, 1610, and 1611 of this Appendix and section 5316 of Title 5, Government Organization and Employees, and enacting provisions set out as notes under sections 1602 and 1605 of this Appendix] may be cited as the 'Urban Mass Transportation Assistance Act of 1970'." SHORT TITLE Section 1 of Pub. L. 88-365 provided: "That this Act [enacting this chapter] may be cited as the 'Urban Mass Transportation Act of 1964'." § 1601a. Additional Congressional findings The Congress finds that the rapid urbanization and the continued dispersal of population and activities within urban areas has made the ability of all citizens to move quickly and at a reasonable cost an urgent national problem; that it is imperative, if efficient, safe, and convenient transportation compatible with soundly planned urban areas is to be achieved, to continue and expand the provisions of this chapter; and that success will require a Federal commitment for the expenditure of at least $10,000,000,000 over a twelve-year period to permit confident and continuing local planning, and greater flexibility in program administration. It is the purpose of this Act to create a partnership which permits the local community, through Federal financial assistance, to exercise the initiative necessary to satisfy its urban mass transportation requirements. (Pub. L. 91-453, § 1, Oct. 15, 1970, 84 Stat. 962.) REFERENCES IN TEXT This Act, referred to in text, is Pub. L. 91-453, Oct. 15, 1970, 84 Stat. 962, known as the Urban Mass Transportation Assistance Act of 1970, which enacted this section and section 1612 of this Appendix, amended sections 1602 to 1605, 1608, 1610 and 1611 of this Appendix and section 5316 of Title 5, Government Organization and Employees, and enacted provisions set out as notes under sections 1602 and 1605 of this Appendix. For complete classification of this Act to the Code, see Short Title of 1970 Amendment note set out under section 1601 of this Appendix and Tables. CODIFICATION Section was enacted as part of the Urban Mass Transportation Assistance Act of 1970, and not as part of the Urban Mass Transportation Act of 1964 which comprises this chapter. § 1601b. Additional Congressional findings The Congress finds that (1) over 70 per centum of the Nation's population lives in urban areas; (2) transportation is the lifeblood of an urbanized society and the health and welfare of that society depends upon the provision of efficient economical and convenient transportation within and between its urban area; (3) for many years the mass transportation industry satisfied the transportation needs of the urban areas of the country capably and profitably; (4) in recent years the maintenance of even minimal mass transportation service in urban areas has become so financially burdensome as to threaten the continuation of this essential public service; (5) the termination of such service or the continued increase in its cost to the user is undesirable, and may have a particularly serious adverse effect upon the welfare of a substantial number of lower income persons; (6) some urban areas are now engaged in developing preliminary plans for, or are actually carrying out, comprehensive projects to revitalize their mass transportation operations; and (7) immediate substantial Federal assistance is needed to enable many mass transportation systems to continue to provide vital service. (Pub. L. 93-503, § 2, Nov. 26, 1974, 88 Stat. 1566.) CODIFICATION Section was enacted as part of the National Mass Transportation Assistance Act of 1974, and not as part of the Urban Mass Transportation Act of 1964 which comprises this chapter. § 1601c. Performance reports (a) Public mass transportation systems; recommendations for administrative or legislative revisions The Secretary of Transportation shall report to Congress in January of 1984 and in January of every second year thereafter his estimates of the current performance and condition of public mass transportation systems together with recommendations for any necessary administrative or legislative revisions. (b) Assessment of public transportation facilities and future needs for such facilities; estimate of future capital, operation, and maintenance requirements In reporting to Congress pursuant to this section, the Secretary shall prepare a comprehensive assessment of public transportation facilities in the United States. The Secretary shall also assess future needs for such facilities and estimate future capital requirements and operation and maintenance requirements for one-, five-, and ten-year periods at specified levels of service. (Pub. L. 97-424, title III, § 310, Jan. 6, 1983, 96 Stat. 2151.) CODIFICATION Section was enacted as part of the Federal Public Transportation Act of 1982, and not as part of the Urban Mass Transportation Act of 1964 which comprises this chapter. 'So in original. Probably should be followed by a comma. § 1602. Federal financial assistance (a) Grants or loans to States and local public agencies; uses of funds; eligibility of applicant; real property acquisition; prohibition on uses of grant or loan funds; intention to obligate by letter of intent to applicant; considerations related to acquisition of rail lines and related facilities; emphasis on labor intensive projects (1) The Secretary is authorized, in accordance with the provisions of this chapter and on such terms and conditions as the Secretary may prescribe, to make grants or loans (directly, through the purchase of securities or equipment trust certificates, or otherwise) to assist States and local public bodies and agencies thereof in financing (A) the construction of new fixed guideway systems and extensions to existing fixed guideway systems, including the acquisition of real property, the initial acquisition of rolling stock needed for such systems, the detailed alternative analyses relating to the development of such systems, and the acquisition of rights-of-way, and relocation, for fixed guideway corridor development for projects in advanced stages of any such detailed alternatives analyses or preliminary engineering; (B) the acquisition, construction, reconstruction, and improvement of facilities and equipment for use, by operation or lease or otherwise, in mass transportation service and the coordination of such service with highway and other transportation. Eligible facilities and equipment may include personal property such as buses and other rolling stock, and rail and bus facilities, and real property and improvements (but not public highways other than fixed guideway facilities) needed for an efficient and coordinated public transportation system. No project for the replacement or purchase of buses and related equipment or the construction of busrelated facilities shall be approved unless the Secretary finds that such project cannot be reasonably funded out of the apportionments under section 1604(a)(4) of this Appendix; (C) the introduction into public transportation service of new technology in the form of innovative and improved products; (D) transportation projects which enhance the effectiveness of any mass transportation project and are physically or functionally related to such mass transportation project or which create new or enhanced coordination between public transportation and other forms of transportation, either of which enhance urban economic development or incorporate private investment including commercial and residential development. The term "eligible costs" includes property acquisition, demolition of existing structures, site preparation, utilities, building foundations, walkways, open space, and the acquisition, construction, and improvement of facilities and equipment for intermodal transfer facilities and transit malls, but does not include the construction of commercial revenue-producing facilities, whether publicly or privately owned, or of those portions of public facilities not related to mass transportation. The Sec Page 1252 retary shall require that all grants and loans under this paragraph be subject to such terms, conditions, requirements, and provisions as the Secretary determines necessary or appropriate for purposes of this section, including requirements for the disposition of net increases in value of real property result ing from the project assisted under this sec tion. The Secretary shall require in all grants and loans under this subparagraph that any person or entity that contracts to occupy space in facilities funded under this subparagraph shall pay a fair share of the cost of such facilities, through rental payments and other means; (E) the modification of equipment and fixed facilities (other than stations) which the Secretary determines to be necessary to avoid any adverse effects resulting from the implementation of the Northeast Corridor project pursuant to title VII of Public Law 94-210. Notwithstanding the Federal share provisions of section 1603(a) of this Appendix, the Secre tary is authorized to make grants for 100 per centum of the net project cost of projects assisted under this subparagraph. (2)(A) No grant or loan shall be provided under this section unless the Secretary deter mines that the applicant has or will have (i) the legal, financial, and technical capac ity to carry out the proposed project; (ii) satisfactory continuing control, through operation or lease or otherwise, over the use of the facilities and the equipment; and (iii) sufficient capability to maintain the facilities and equipment. (B) The Secretary may make loans for real property acquisition pursuant to subsection (b) of this section upon a determination, which shall be in lieu of the determination required by subparagraph (A), that the real property is reasonably expected to be required in connec tion with a mass transportation system and that it will be used for that purpose within a reasonable period. (C) No grant or loan funds shall be used for payment of ordinary governmental or nonproj.| ect operating expenses, nor shall any grant or loan funds be used to support procurements utilizing exclusionary or discriminatory specifi cations. (3) The Secretary shall not approve a grant or loan for a project under this section unless the Secretary finds that such project is part of an approved program of projects required by section 1607 of this Appendix. (4) The Secretary is authorized to announce an intention to obligate for a project under this section through the issuance of a letter of intent to the applicant. At least thirty days prior to the issuance of a letter of intent under this paragraph, the Secretary 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 such letter of intent. Such an action shall not be deemed an obligation as defined under sections 1108(c) and (d), 1501, and 1502(a) of title 31, nor shall such a letter be deemed an administrative commitment. The letter shall be regarded as an intention to obligate from future available budget authority provided in an appropriation Act not to exceed an amount stipulated as the Secretary's financial participation in the defined project under this section. The amount stipulated in the letter, when issued for a fixed guideway project, shall be sufficient to complete an operable segment. No obligation or administrative commitment may be made pursuant to such a letter of intent except as funds are provided in appropriations Acts. The total estimated amount of future Federal obligations covered by all outstanding letters of intent shall not exceed the amount authorized to carry out this section, less an amount reasonably estimated by the Secretary to be necessary for grants under this section which are not covered by a letter of intent. The total amount covered by new letters issued shall not exceed any limitation that may be specified in an appropriations Act. Nothing in this paragraph shall affect the validity of letters of intent issued prior to November 6, 1978. Funding for projects covered by letters of intent or letters of commitment issued, and full funding contracts executed, prior to January 6, 1983, should be funded under this section while not precluding the funding of a portion of such projects using section 1607a of this Appendix capital funds unless such funding would impair the recipient's ability to fund routine capital projects under such section. Notwithstanding the provisions of section 1603(a) of this Appendix, the Federal share of the total project cost of any project under this section covered by a full funding contract, letter of intent, or letter of commitment in effect on January 6, 1983, or those projects within the federally agreed upon scope for the Washington, District of Columbia, metropolitan area transit system (as of such date), shall not be altered. (5) The Secretary shall take into account the adverse effect of decreased commuter rail service in considering applications for assistance under this section for the acquisition of rail lines and all related facilities used in providing commuter rail service which are owned by a railroad subject to reorganization under title 11. (6) In making grants under this section in fiscal year 1983, the Secretary shall, to the extent practicable, emphasize projects that are labor intensive and that can begin construction or manufacturing within the shortest possible time. (b) Acquisition of real property; uses; provisions of loan agreement; repayment and forgiveness of loans; submission of applications to the Secretary and the comprehensive planning agency of the community affected and consideration of comments of such agency by the Secretary The Secretary is authorized to make loans under this section to States or local public bodies and agencies thereof to finance the acquisition of real property and interests in real property for use as rights-of-way, station sites, and related purposes, on urban mass transportation systems, including reconstruction, ren ovation, and the net cost of property management and relocation payments made pursuant to section 1606 of this Appendix. Each loan agreement under this subsection shall provide for actual construction of urban mass transportation facilities on acquired real property within a period not exceeding ten years following the fiscal year in which the agreement is made. Each agreement shall provide that in the event acquired real property or interests in real property are not to be used for the purposes for which acquired, an appraisal of current value will be made at the time of that determination, which shall not be later than ten years following the fiscal year in which the agreement is made. Two-thirds of the increase in value, if any, over the original cost of the real property shall be paid to the Secretary for credit to miscellaneous receipts of the Treasury. Repayment of amounts loaned shall be credited to miscellaneous receipts of the Treasury. A loan made under this subsection shall be repayable within ten years from the date of the loan agreement or on the date a grant agreement for actual construction of facilities on the acquired real property is made, whichever date is earlier. A grant agreement for construction of facilities under this chapter may provide for forgiveness of the repayment of the principal and accrued interest on the loan then outstanding in lieu of a cash grant in the amount thus forgiven, which for all purposes shall be considered a part of the grant and of the Federal portion of the cost of the project. An applicant for assistance under this subsection shall furnish a copy of its application to the comprehensive planning agency of the community affected concurrently with submission to the Secretary. If within a period of thirty days thereafter (or, in a case where the comprehensive planning agency of the community (during such thirtyday period) requests more time, within such longer period as the Secretary may determine) the comprehensive planning agency of the community affected submits comments to the Secretary, the Secretary must consider the comments before taking final action on the application. (c) Loan restrictions and limitations; interest No loans shall be made under this section for any project for which a grant is made under this section, except (1) loans may be made for projects as to which grants are made for relocation payments; and (2) project grants may be made even though the real property involved in the project has been or will be acquired as a result of a loan under subsection (b) of this section. Interest on loans made under this section shall be at a rate not less than (i) a rate determined by the Secretary of the Treasury, taking into consideration the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the average maturities of such loans adjusted to the nearest one-eighth of 1 per centum, plus (ii) an allowance adequate in the judgment of the Secretary of Transpor tation to cover administrative costs and probable losses under the program. No loans shall be made, including renewals on extensions thereof, and no securities or obligations shall be purchased, which have maturity dates in excess of forty years. (d) Notice and public hearings Any application for a grant or loan under this chapter to finance the acquisition, construction, reconstruction, or improvement of facilities or equipment which will substantially affect a community or its mass transportation service shall include a certification that the applicant (1) has afforded an adequate opportunity for public hearings pursuant to adequate prior notice, and has held such hearings unless no one with a significant economic, social, or environmental interest in the matter requests a hearing; (2) has considered the economic and social effects of the project and its impact on the environment; and (3) has found that the project is consistent with official plans for the comprehensive development of the urban area. Notice of any hearings under this subsection shall include a concise statement of the proposed project, and shall be published in a newspaper of general circulation in the geographic area to be served. If hearings have been held, a copy of the transcript of the hearings shall be submitted with the application. (e) Private transit operators No financial assistance shall be provided under this chapter to any State or local public body or agency thereof for the purpose, directly or indirectly, of acquiring any interest in, or purchasing any facilities or other property of, a private mass transportation company, or for the purpose of constructing, improving, or reconstructing any facilities or other property acquired (after July 9, 1964) from any such company, or for the purpose of providing by contract or otherwise for the operation of mass transportation facilities or equipment in competition with, or supplementary to, the service provided by an existing mass transportation company, unless (1) the Secretary finds that such assistance is essential to the program of projects required by section 1607 of this Appendix, (2) the Secretary finds that such program, to the maximum extent feasible, provides for the participation of private mass transportation companies, (3) just and adequate compensation will be paid to such companies for acquisition of their franchises or property to the extent required by applicable State or local laws, and (4) the Secretary of Labor certifies that such assistance complies with the requirements of section 1609(c) of this Appendix. (f) Purchase or operation of buses No Federal financial assistance under this chapter may be provided for the purchase or operation of buses unless the applicant or any public body receiving such assistance for the purchase or operation of buses, or any publicly owned operator receiving such assistance, shall as a condition of such assistance enter into an agreement with the Secretary that such public body, or any operator of mass transportation for such public body, will not engage in charter bus operations outside the urban area within which it provides regularly scheduled mass transportation service, except as provided in the agreement authorized by this subsection. Such agreement shall provide for fair and equi table arrangements, appropriate in the judg ment of the Secretary, to assure that the finan cial assistance granted under this chapter will not enable public bodies and publicly and pri vately owned operators for public bodies to foreclose private operators from the intercity charter bus industry where such private operators are willing and able to provide such service. In addition to any other remedies specified in the agreement, the Secretary shall have the authority to bar a grantee or operator from the receipt of further financial assistance for mass transportation facilities and equipment where he determines that there has been a continuing pattern of violations of the terms of agreement. Upon receiving a complaint regarding an alleged violation, the Secretary shall investigate and shall determine whether a violation has oc curred. Upon determination that a violation has occurred, he shall take appropriate action to correct the violation under the terms and conditions of the agreement. (g) Schoolbus operations No Federal financial assistance shall be provided under this chapter for the construction or operation of facilities and equipment for use in providing public mass transportation service to any applicant for such assistance unless such applicant and the Secretary shall have first en tered into an agreement that such applicant will not engage in schoolbus operations, exclusively for the transportation of students and school personnel, in competition with private schoolbus operators. This subsection shall not apply to an applicant with respect to operation of a schoolbus program if the applicant oper ates a school system in the area to be served and operates a separate and exclusive schoolbus program for this school system. This subsection shall not apply unless private schoolbus opera | tors are able to provide adequate transporta tion, at reasonable rates, and in conformance with applicable safety standards; and this subsection shall not apply with respect to any State or local public body or agency thereof if it (or a direct predecessor in interest from which it acquired the function of so transporting schoolchildren and personnel along with facilities to be used therefor) was so engaged in schoolbus operations any time during the twelve-month period immediately prior to November 26, 1974. A violation of an agreement under this subsection shall bar such applicant from receiving any other Federal financial assistance under this chapter. (h) Expenditure of funds in connection with acquisi tion of buses, bus equipment, or bus related facil ities Notwithstanding any other provision of this chapter, the Secretary, upon application by a local public body, may approve a project which |