[House Report 118-508]
[From the U.S. Government Publishing Office]


118th Congress }                                          { Report 
                        HOUSE OF REPRESENTATIVES
  2d Session   }                                          { 118-508

======================================================================
 
                     ROLLING STOCK PROTECTION ACT

                                _______
                                

  May 14, 2024.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

   Mr. Graves of Missouri, from the Committee on Transportation and 
                Infrastructure, submitted the following

                              R E P O R T

                        [To accompany H.R. 3317]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Transportation and Infrastructure, to whom 
was referred the bill (H.R. 3317) to amend title 49, United 
States Code, to remove the lifetime exemption from the 
prohibition on procurement of rolling stock from certain 
vehicle manufacturers for parties to executed contracts, having 
considered the same, reports favorably thereon without 
amendment and recommends that the bill do pass.

                                CONTENTS

                                                                   Page
Purpose of Legislation...........................................     2
Background and Need for Legislation..............................     2
Hearings.........................................................     3
Legislative History and Consideration............................     3
Committee Votes..................................................     4
Committee Oversight Findings and Recommendations.................     4
New Budget Authority and Tax Expenditures........................     4
Congressional Budget Office Cost Estimate........................     4
Performance Goals and Objectives.................................     9
Duplication of Federal Programs..................................     9
Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
  Benefits.......................................................     9
Federal Mandates Statement.......................................     9
Preemption Clarification.........................................     9
Advisory Committee Statement.....................................    10
Applicability to Legislative Branch..............................    10
Section-by-Section Analysis of The Legislation...................    10
    Section 1. Short Title.......................................    10
    Section 2. Removal of Lifetime Exemption from Prohibition on 
      Procurement of Rolling Stock for Parties to Executed 
      Contracts..................................................    10
Changes in Existing Law Made by the Bill, as Reported............    10

                         Purpose of Legislation

    The purpose of H.R. 3317 is to amend title 49, United 
States Code, to remove the lifetime exemption from the 
prohibition on procurement of rolling stock from certain 
vehicle manufacturers for parties to executed contracts.

                  Background and Need for Legislation

    In 2019, Congress passed legislation that amended Federal 
Transit Administration (FTA) procurement guidelines by imposing 
a prohibition on the use of FTA funds to purchase rolling stock 
from Chinese-owned or Chinese-domiciled manufacturers.\1\ 
Section 7613 of the National Defense Authorization Act for 
Fiscal Year 2020 incorporated legislative language from the 
Transit Infrastructure Vehicle Security Act that prevents 
Federal funding assistance for public transportation rolling 
stock procurements from being allocated to state owned 
enterprises (SOE) or state-related enterprises in countries 
named on certain watch lists. This includes entities connected 
to the Chinese Communist Party (CCP).\2\ This section also 
instated a two-year delay in the enactment of those 
prohibitions.\3\
---------------------------------------------------------------------------
    \1\Jeff Davis, Final Defense Bill Bans New Purchases of Mass 
Transit Vehicles from Chinese Companies--After 2-Year Delay, Eno Center 
For Transp., (Dec. 10, 2019), available at https://enotrans.org/
article/final-defense-bill-bans-new-purchases-of-mass-transit-vehicles-
from-chinese-companies-after-2-year-delay.
    \2\See Transit Infrastructure Vehicle Security Act, H.R. 2739, 
116th Cong. (2019); National Defense Authorization Act for Fiscal Year 
2020, Pub. L. No. 116-92 Sec. 7613, 133 Stat. 2314.
    \3\National Defense Authorization Act for Fiscal Year 2020, Pub. L. 
No. 116-92 Sec. 7613, 133 Stat. 2314.
---------------------------------------------------------------------------
    FTA's authority to enact the funding prohibitions 
instituted in Section 7613 was codified in Title 49, of the 
United States Code of Federal Regulations (C.F.R.), Section 
5323(u). Section 5323(u)(5) ``Special Rules'' provides an 
exemption to the funding prohibitions for specific transit 
agencies engaged in contracts with restricted rolling stock 
manufacturers which were executed prior to the law's enactment, 
stating:

        [t]his subsection, including the certification 
        requirement under paragraph (4), shall not apply to the 
        award of any contract or subcontract made by a public 
        transportation agency with a rail rolling stock 
        manufacturer described in paragraph (1) if the 
        manufacturer and the public transportation agency have 
        executed a contract for rail rolling stock before the 
        date of enactment of this subsection.\4\
---------------------------------------------------------------------------
    \4\49 U.S.C. Sec. 5323, available at https://www.govinfo.gov/
content/pkg/USCODE-2021-title49/pdf/USCODE-2021-title49-subtitleIII-
chap53-sec5323.pdf.

    FTA's enforcement of Title 49, C.F.R. Section 5323(u) is 
clarified on a public agency-maintained website titled 
``Frequently Asked Questions Regarding Section 7613.''\5\ The 
FTA states: ``Any public transportation agency that formed a 
contract for rail rolling stock with an otherwise restricted 
manufacturer prior to December 20, 2019, is permanently exempt 
from the restrictions of Section 5323(u) for rail rolling stock 
procured from that particular manufacturer.''\6\ As enacted, 
Title 49, C.F.R. Section 5323(u) allowed the FTA to grant 
lifetime exemptions from rail rolling stock procurement 
restrictions to four public transit agencies.\7\
---------------------------------------------------------------------------
    \5\U.S. Dep't of Transp., Fed. Transit Admin., Frequently Asked 
Questions Regarding Section 7613 of the National Defense Authorization 
Act for Fiscal Year 2020, (Feb. 2, 2022), available at https://
www.transit.dot.gov/funding/procurement/frequently-asked-questions-
regarding-sec tion-7613-national-defense.
    \6\Id.
    \7\Id.
---------------------------------------------------------------------------
    H.R. 3317 eliminates that exemption and will disallow any 
transit agency from purchasing rolling stock from certain SOEs 
using FTA financial assistance. H.R. 3317 will strike the 
relevant subparagraph in Section 5323(u) of Title 49, C.F.R., 
and prevent further expenditure of taxpayer funds from being 
allocated to CCP-controlled or connected entities. Eliminating 
this exemption strengthens domestic manufacturing opportunity 
and competitiveness and diminishes potential National and 
economic security concerns associated with allocations of 
Federal funding to Chinese-owned or Chinese-domiciled entities 
affiliated with the CCP.

                                Hearings

    For the purposes of rule XIII, clause 3(c)(6)(A) of the 
118th Congress--
    On Wednesday, February 1, 2023, the Committee on 
Transportation and Infrastructure held a hearing entitled, 
``The State of Transportation Infrastructure and Supply Chain 
Challenges.'' The hearing provided an opportunity for Members 
of the Committee to discuss the current state of our Nation's 
transportation infrastructure, receive stakeholder input 
related to domestic manufacturing and supply chain challenges, 
and engage in dialogue related to industrial dependency on 
foreign entities, including China. Members received testimony 
from Mr. Chris Spear, President and Chief Executive Officer, 
American Trucking Associations; Mr. Ian Jefferies, President 
and Chief Executive Officer, Association of American Railroads 
(AAR); Mr. Jeff Firth, President, Hamilton Construction, on 
behalf of Associated General Contractors of America (AGC); Mr. 
Roger Guenther, Executive Director, Port Houston; and Mr. Greg 
Regan, President, Transportation Trades Department, AFL-CIO 
(TTD). The witnesses testified about the need to address 
National industrial production and supply chain policies, 
including the risks association with further reliance on China 
for domestic transportation and infrastructure equipment needs 
and resources.

                 Legislative History and Consideration

    H.R. 3317, the Rolling Stock Protection Act, was introduced 
in the United States House of Representatives of May 15, 2023, 
by Mr. Crawford of Arkansas, with Mr. Nehls of Texas and Mr. 
Perry of Pennsylvania as original cosponsors, and referred to 
the Committee on Transportation and Infrastructure. Within the 
Committee on Transportation and Infrastructure, H.R. 3317 was 
referred to the Subcommittee on Highways and Transit. The 
Subcommittee on Highways and Transit was discharged from 
further consideration of H.R. 3317 on May 23, 2023.
    The Committee considered H.R. 3317 on May 23, 2023, and 
ordered the measure to be reported to the House with a 
favorable recommendation, without amendment, by voice vote.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires each committee report to include the 
total number of votes cast for and against on each record vote 
on a motion to report and on any amendment offered to the 
measure or matter, and the names of those members voting for 
and against.
    No recorded votes were requested during consideration of 
H.R. 3317.

            Committee Oversight Findings and Recommendations

    With respect to the requirements of clause 3(c)(1) of rule 
XIII of the Rules of the House of Representatives, the 
Committee's oversight findings and recommendations are 
reflected in this report.

               New Budget Authority and Tax Expenditures

    Clause 3(c)(2) of rule XIII of the Rules of the House of 
Representatives does not apply where a cost estimate and 
comparison prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act of 
1974 has been timely submitted prior to the filing of the 
report and is included in the report. Such a cost estimate is 
included in this report.

               Congressional Budget Office Cost Estimate

    With respect to the requirement of clause 3(c)(3) of rule 
XIII of the Rules of the House of Representatives and section 
402 of the Congressional Budget Act of 1974, the Committee has 
received the enclosed cost estimate for H.R. 3317 from the 
Director of the Congressional Budget Office:




    Summary: On May 23, 2023, the House Committee on 
Transportation and Infrastructure considered multiple pieces of 
legislation. This document provides estimates for 12 bills that 
were ordered reported.
    The bills would, among other things, direct the Department 
of Transportation (DOT) or the Federal Maritime Commission to:
          Prioritize grant applications for projects that would 
        improve the resiliency of the supply chain and revise 
        the permitting process for certain port, airport, and 
        pipeline projects, with the goal of accelerating 
        approval;
          Change restrictions on the type, size, and weight of 
        vehicles that can travel on the Interstate highways; 
        and Require data collection and new studies aimed at 
        improving the safety and efficiency of domestic 
        transportation systems.
    Estimated federal cost: The bills' estimated budgetary 
effects are shown in Table 1. This cost estimate does not 
include any effects of interaction among the bills. If all 12 
bills were combined and enacted as a single piece of 
legislation, the effects could be different from the sum of the 
separate estimates, although CBO expects that any differences 
would be small. The bills' costs fall within budget function 
400 (transportation).

                      TABLE 1.--ESTIMATED BUDGETARY EFFECTS OF THE SUPPLY CHAIN LEGISLATION
----------------------------------------------------------------------------------------------------------------
                                                                By fiscal year, millions of dollars--
                                                   -------------------------------------------------------------
                                                                                                         2023-
                                                     2023    2024    2025    2026    2027      2028       2028
----------------------------------------------------------------------------------------------------------------
                                  Changes in Spending Subject to Appropriation
 
H.R. 1500, Intelligent Transportation Integration
 Act:
    Estimated Authorization.......................       0       6       6       6       6          7         31
    Estimated Outlays.............................       0       5       6       6       6          7         30
H.R. 1836, Ocean Shipping Reform Implementation
 Act of 2023:
    Estimated Authorization.......................       0       1       1       1       2          2          7
    Estimated Outlays.............................       0       1       1       1       2          2          7
----------------------------------------------------------------------------------------------------------------
CBO estimates that H.R. 915, H.R. 2948, H.R. 3013, H.R. 3316, H.R. 3318, H.R. 3365, H.R. 3372, H.R. 3395, and
  H.R. 3447, would each increase spending subject to appropriation by less than $500,000 in every year and over
  the 2023-2028 period.
CBO estimates that H.R. 3316, H.R. 3317, and H.R. 3365 would each affect direct spending by less than $500,000
  in every year and over the 2023-2033 period.

    Basis of estimate: For this estimate, CBO assumes that the 
bills will be enacted near the end of fiscal year 2023 and that 
the authorized and estimated amounts will be appropriated each 
year. Outlays for discretionary programs are estimated based on 
historical spending patterns for similar programs.
    As discussed below, one bill would affect direct spending 
only and two bills would affect both direct spending and 
spending subject to appropriation. CBO estimates that the 
effects of each bill on direct spending would be insignificant 
over the 2023-2033 period. The other bills would affect 
spending subject to appropriation alone. None of the bills 
would affect revenues.
    Bill that affects direct spending only: CBO estimates that 
just one bill would have an insignificant effect on direct 
spending and no effects on revenues or spending subject to 
appropriation.
    H.R. 3317, the Rolling Stock Protection Act, would remove 
an exemption from current law that allows a small number of 
public transit agencies to procure rolling stock from entities 
owned, controlled, or associated with certain countries. CBO 
estimates that enacting the bill could change the pace of 
spending for amounts previously appropriated for the Federal 
Transit Administration's Capital Investment Grants, relative to 
current law. (Those amounts could include funds that were 
designated as an emergency requirement under the Infrastructure 
Investment and Jobs Act.) However, because few transit agencies 
would be affected, CBO expects that any changes in spending 
would total less than $500,000 in any year and over the 2023-
2033 period.
    Bills that affect direct spending and spending subject to 
appropriation: CBO estimates that two bills could have 
insignificant effects on direct spending and spending subject 
to appropriation but would not affect revenues.
    H.R. 3316, a bill to amend titles 46 and 49, United States 
Code, to streamline the environmental review process for major 
projects, and for other purposes, would require DOT to revise 
the permitting process for certain port, airport, and pipeline 
projects, with the aim of making the process more efficient. 
The bill also would require DOT to maintain a database of 
projects and to update agency regulations.
    Under current law, if an agency fails to meet certain 
permitting deadlines, specified amounts of funding would be 
rescinded from that agency's account. Because the bill would 
expand the number of projects subject to those conditions, 
enacting H.R. 3316 could reduce direct spending. CBO estimates 
that any effect would not be significant over the 2023-2033 
period because of the small number of projects likely to be 
affected.
    CBO estimates that implementing the bill would increase 
spending subject to appropriation by less than $500,000 over 
the 2023-2028 period, mostly for administrative activities.
    H.R. 3365, the Supply Chain Improvement Act, would direct 
DOT to prioritize consideration of grant applications for 
projects aimed at improving resiliency in the supply chain, 
unless those projects support the use of electric vehicles. In 
particular, the requirement would apply to grants under the 
Nationally Significant Multimodal Freight and Highway Projects 
program (known as the INFRA grant program) and the National 
Infrastructure Project Assistance program. The bill would 
increase the share of INFRA grants that could be used for 
intermodal freight rail projects.
    The Infrastructure Investment and Jobs Act provided $21 
billion for those two programs over the 2022-2026 period. (The 
appropriated amounts were designated as an emergency 
requirement.) CBO estimates that H.R. 3365 could alter the 
spending patterns for those previously appropriated amounts, 
which would be recorded as changes in direct spending. CBO 
estimates that, on net, those changes would amount to less than 
$500,000 in any year and over the 2023-2033 period.
    H.R. 3365 also would direct the Government Accountability 
Office to report on the effects of electric vehicles in several 
areas, including infrastructure integrity and grid security. 
The bill also would prevent agencies from prioritizing any 
project seeking to use grants that would support electric 
vehicles until a subsequent act of Congress has been passed 
allowing such prioritization. Using information about similar 
reports, CBO estimates that the report would cost less than 
$500,000 over the 2023-2028 period; such spending would be 
subject to the availability of appropriated amounts.
    Bills that affect spending subject to appropriation by a 
significant amount: CBO estimates that two bills would affect 
spending subject to appropriation by more than $500,000 over 
the 2023-2028 period. The costs for those two bills are shown 
in Table 1. Neither bill would affect direct spending or 
revenues.
    H.R. 1500, the Intelligent Transportation Integration Act, 
would require DOT to purchase certain data from public and 
private entities to help improve the department's management of 
traffic and transportation infrastructure. DOT would be 
required to report to Congress annually on those activities. 
Using information from the agency about similar contracting 
activities, CBO estimates that implementing H.R. 1500 would 
cost $30 million over the 2023-2028 period, assuming 
appropriation of the estimated amounts.
    H.R. 1836, the Ocean Shipping Reform Implementation Act of 
2023, would create additional administrative and reporting 
requirements for the Federal Maritime Commission, including a 
requirement to issue two new regulations and publish a study. 
The bill also would establish two advisory committees to assist 
the commission in creating policies to ensure competitiveness, 
reliability, and efficiency in international ocean shipping.
    Using information on similar administrative requirements 
and accounting for anticipated inflation, CBO estimates that 
implementing H.R. 1836 would cost $7 million over the 2023-2028 
period; any spending would be subject to the availability of 
appropriated amounts.
    Bills that affect spending subject to appropriation by an 
insignificant amount: CBO estimates that implementing the 
following seven bills would cost less than $500,000 each over 
the 2023-2028 period. None of the bills would affect direct 
spending or revenues.
    H.R. 915, the Motor Carrier Safety Selection Standard Act, 
would create new standards for certain motor carriers that 
transport goods, require DOT to update regulations to be 
consistent with those standards, and direct the department to 
stipulate the method for revoking a motor carrier's 
registration.
    H.R. 2948, the CARS Act, would require states to allow 
certain stinger-steered automobile transporters to operate on 
Interstate highways. (Such transporters have a fifth wheel 
located below the rear-most axle of the power unit.)
    H.R. 3013, the LICENSE Act of 2023, would require DOT to 
issue regulations updating the qualifications to be a 
commercial driver's license examiner. The bill also would allow 
states to administer those tests to out-of-state applicants.
    H.R. 3318, a bill to amend title 23, United States Code, to 
establish an axle weight tolerance for certain commercial motor 
vehicles transporting dry bulk goods, and for other purposes, 
would increase the maximum weight per axle that a commercial 
vehicle transporting dry bulk goods can carry on an Interstate 
highway. The bill would not change the overall gross vehicle 
weight limits for such vehicles.
    H.R. 3372, a bill to amend title 23, United States Code, to 
establish a safety data collection program for certain 6-axle 
vehicles, and for other purposes, would create a pilot program 
allowing certain six-axle vehicles to be operated on Interstate 
highways. Under the bill, participating states would issue 
permits by vehicle or by group of vehicles that would specify 
acceptable routes and require permit holders to report on 
accidents and other details. The program would be discontinued 
after five years, although DOT could extend the program for 
five years.
    H.R. 3395, the U.S. Supply Chain Security Review Act of 
2023, would require the Federal Maritime Commission to study 
the effects of foreign ownership of domestic marine terminals 
on U.S. economic security and report those findings to the 
Congress.
    H.R. 3447, a bill to amend title 23, United States Code, to 
authorize a hydrogen powered vehicle to exceed certain weight 
limits on the Interstate Highway System, and for other 
purposes, would authorize hydrogen-powered vehicles to exceed 
certain weight limits specified under current law.
    Pay-As-You-Go considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. Over the 2023-2033 period, CBO estimates that none of 
the bills would increase direct spending by more than $500,000.
    Increase in long-term net direct spending and deficits: 
None.
    Mandates: None.
    Estimate prepared by: Federal costs: Aaron Krupkin (for 
Federal Maritime Commission); Robert Reese (for Department of 
Transportation). Mandates: Brandon Lever.
    Estimate reviewed by: Susan Willie, Chief, Natural and 
Physical Resources Cost Estimates Unit; Kathleen FitzGerald, 
Chief, Public and Private Mandates Unit; H. Samuel Papenfuss, 
Deputy Director of Budget Analysis.
    Estimate approved by: Phillip L. Swagel, Director, 
Congressional Budget Office.

                    Performance Goals and Objectives

    With respect to the requirement of clause 3(c)(4) of rule 
XIII of the Rules of the House of Representatives, the 
performance goal and objective of this legislation is to 
prohibit the allocation of Federal funding assistance to 
transportation and transit agencies for the procurement of 
rolling stock manufactured, assembled or otherwise produced by 
any SOE or business affiliated with the CCP.

                    Duplication of Federal Programs

    Pursuant to clause 3(c)(5) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that no provision 
of H.R. 3317 establishes or reauthorizes a program of the 
Federal government known to be duplicative of another Federal 
program, a program that was included in any report from the 
Government Accountability Office to Congress pursuant to 
section 21 of Public Law 111-139, or a program related to a 
program identified in the most recent Catalog of Federal 
Domestic Assistance.

   Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
                                Benefits

    In compliance with clause 9 of rule XXI of the Rules of the 
House of Representatives, this bill, as reported, contains no 
congressional earmarks, limited tax benefits, or limited tariff 
benefits as defined in clause 9(e), 9(f), or 9(g) of the rule 
XXI.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act (Public Law 104-4).

                        Preemption Clarification

    Section 423 of the Congressional Budget Act of 1974 
requires the report of any Committee on a bill or joint 
resolution to include a statement on the extent to which the 
bill or joint resolution is intended to preempt state, local, 
or tribal law. The Committee finds that H.R. 3317 does not 
preempt any state, local, or tribal law.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act (Public Law 
104-1).

             Section-by-Section Analysis of the Legislation


Section 1. Short title

    This section provides that this bill may be cited as the 
``Rolling Stock Protection Act''.

Section 2. Removal of lifetime exemption from prohibition on 
        procurement of rolling stock for parties to executed contracts

    This section amends section 5323(u)(5) of title 49, United 
States Code, by striking language that grants a procurement 
prohibition exemption for public transportation agencies that 
entered into a contract or subcontract with manufacturers 
identified in section 5323(u)(1), before December 20, 2019, for 
the procurement of rolling stock.

         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

                      TITLE 49, UNITED STATES CODE




           *       *       *       *       *       *       *
SUBTITLE III--GENERAL AND INTERMODAL PROGRAMS

           *       *       *       *       *       *       *


CHAPTER 53--PUBLIC TRANSPORTATION

           *       *       *       *       *       *       *



Sec. 5323. General provisions

  (a) Interests in Property.--
          (1) In general.--Financial assistance provided under 
        this chapter to a State or a local governmental 
        authority may be used to acquire an interest in, or to 
        buy property of, a private company engaged in public 
        transportation, for a capital project for property 
        acquired from a private company engaged in public 
        transportation after July 9, 1964, or to operate a 
        public transportation facility or equipment in 
        competition with, or in addition to, transportation 
        service provided by an existing public transportation 
        company, only if--
                  (A) the Secretary determines that such 
                financial assistance is essential to a program 
                of projects required under sections 5303, 5304, 
                and 5306;
                  (B) the Secretary determines that the program 
                provides for the participation of private 
                companies engaged in public transportation to 
                the maximum extent feasible; and
                  (C) just compensation under State or local 
                law will be paid to the company for its 
                franchise or property.
          (2) Limitation.--A governmental authority may not use 
        financial assistance of the United States Government to 
        acquire land, equipment, or a facility used in public 
        transportation from another governmental authority in 
        the same geographic area.
  (b) Relocation and Real Property Requirements.--The Uniform 
Relocation Assistance and Real Property Acquisition Policies 
Act of 1970 (42 U.S.C. 4601 et seq.) shall apply to financial 
assistance for capital projects under this chapter.
  (c) Consideration of Economic, Social, and Environmental 
Interests.--
          (1) Cooperation and consultation.--The Secretary 
        shall cooperate and consult with the Secretary of the 
        Interior and the Administrator of the Environmental 
        Protection Agency on each project that may have a 
        substantial impact on the environment.
          (2) Compliance with nepa.--The National Environmental 
        Policy Act of 1969 (42 U.S.C. 4321 et seq.) shall apply 
        to financial assistance for capital projects under this 
        chapter.
  (d) Condition on Charter Bus Transportation Service.--
          (1) Agreements.--Financial assistance under this 
        chapter may be used to buy or operate a bus only if the 
        applicant, governmental authority, or publicly owned 
        operator that receives the assistance agrees that, 
        except as provided in the agreement, the governmental 
        authority or an operator of public transportation for 
        the governmental authority will not provide charter bus 
        transportation service outside the urban area in which 
        it provides regularly scheduled public transportation 
        service. An agreement shall provide for a fair 
        arrangement the Secretary of Transportation considers 
        appropriate to ensure that the assistance will not 
        enable a governmental authority or an operator for a 
        governmental authority to foreclose a private operator 
        from providing intercity charter bus service if the 
        private operator can provide the service.
          (2) Violations.--
                  (A) Investigations.--On receiving a complaint 
                about a violation of the agreement required 
                under paragraph (1), the Secretary shall 
                investigate and decide whether a violation has 
                occurred.
                  (B) Enforcement of agreements.--If the 
                Secretary decides that a violation has 
                occurred, the Secretary shall correct the 
                violation under terms of the agreement.
                  (C) Additional remedies.--In addition to any 
                remedy specified in the agreement, the 
                Secretary shall bar a recipient or an operator 
                from receiving Federal transit assistance in an 
                amount the Secretary considers appropriate if 
                the Secretary finds a pattern of violations of 
                the agreement.
  (e) Bond Proceeds Eligible for Local Share.--
          (1) Use as local matching funds.--Notwithstanding any 
        other provision of law, a recipient of assistance under 
        section 5307, 5309, or 5337 may use the proceeds from 
        the issuance of revenue bonds as part of the local 
        matching funds for a capital project.
          (2) Maintenance of effort.--The Secretary shall 
        approve of the use of the proceeds from the issuance of 
        revenue bonds for the remainder of the net project cost 
        only if the Secretary finds that the aggregate amount 
        of financial support for public transportation in the 
        urbanized area provided by the State and affected local 
        governmental authorities during the next 3 fiscal 
        years, as programmed in the State transportation 
        improvement program under section 5304, is not less 
        than the aggregate amount provided by the State and 
        affected local governmental authorities in the 
        urbanized area during the preceding 3 fiscal years.
          (3) Debt service reserve.--The Secretary may 
        reimburse an eligible recipient for deposits of bond 
        proceeds in a debt service reserve that the recipient 
        establishes pursuant to section 5302(4)(J) from amounts 
        made available to the recipient under section 5309.
  (f) Schoolbus Transportation.--
          (1) Agreements.--Financial assistance under this 
        chapter may be used for a capital project, or to 
        operate public transportation equipment or a public 
        transportation facility, only if the applicant agrees 
        not to provide schoolbus transportation that 
        exclusively transports students and school personnel in 
        competition with a private schoolbus operator. This 
        subsection does not apply--
                  (A) to an applicant that operates a school 
                system in the area to be served and a separate 
                and exclusive schoolbus program for the school 
                system; and
                  (B) unless a private schoolbus operator can 
                provide adequate transportation that complies 
                with applicable safety standards at reasonable 
                rates.
          (2) Violations.--If the Secretary finds that an 
        applicant, governmental authority, or publicly owned 
        operator has violated the agreement required under 
        paragraph (1), the Secretary shall bar a recipient or 
        an operator from receiving Federal transit assistance 
        in an amount the Secretary considers appropriate.
  (g) Buying Buses Under Other Laws.--Subsections (d) and (f) 
of this section apply to financial assistance to buy a bus 
under sections 133 and 142 of title 23.
  (h) Grant and Loan Prohibitions.--A grant or loan may not be 
used to--
          (1) pay ordinary governmental or nonproject operating 
        expenses;
          (2) pay incremental costs of incorporating art or 
        non-functional landscaping into facilities, including 
        the costs of an artist on the design team; or
          (3) support a procurement that uses an exclusionary 
        or discriminatory specification.
  (i) Government Share of Costs for Certain Projects.--
          (1) Acquiring vehicles and vehicle-related equipment 
        or facilities.--
                  (A) Vehicles.--A grant for a project to be 
                assisted under this chapter that involves 
                acquiring vehicles for purposes of complying 
                with or maintaining compliance with the 
                Americans with Disabilities Act of 1990 (42 
                U.S.C. 12101 et seq.) or the Clean Air Act is 
                for 85 percent of the net project cost.
                  (B) Vehicle-related equipment or 
                facilities.--A grant for a project to be 
                assisted under this chapter that involves 
                acquiring vehicle-related equipment or 
                facilities required by the Americans with 
                Disabilities Act of 1990 (42 U.S.C. 12101 et 
                seq.) or vehicle-related equipment or 
                facilities (including clean fuel or alternative 
                fuel vehicle-related equipment or facilities) 
                for purposes of complying with or maintaining 
                compliance with the Clean Air Act, is for 90 
                percent of the net project cost of such 
                equipment or facilities attributable to 
                compliance with those Acts. The Secretary shall 
                have discretion to determine, through 
                practicable administrative procedures, the 
                costs of such equipment or facilities 
                attributable to compliance with those Acts.
          (2) Costs incurred by providers of public 
        transportation by vanpool.--
                  (A) Local matching share.--The local matching 
                share provided by a recipient of assistance for 
                a capital project under this chapter may 
                include any amounts expended by a provider of 
                public transportation by vanpool for the 
                acquisition of rolling stock to be used by such 
                provider in the recipient's service area, 
                excluding any amounts the provider may have 
                received in Federal, State, or local government 
                assistance for such acquisition.
                  (B) Use of revenues.--A private provider of 
                public transportation by vanpool may use 
                revenues it receives in the provision of public 
                transportation service in the service area of a 
                recipient of assistance under this chapter that 
                are in excess of the provider's operating costs 
                for the purpose of acquiring rolling stock, if 
                the private provider enters into a legally 
                binding agreement with the recipient that 
                requires the provider to use the rolling stock 
                in the recipient's service area.
                  (C) Definitions.--In this paragraph, the 
                following definitions apply:
                          (i) Private provider of public 
                        transportation by vanpool.--The term 
                        ``private provider of public 
                        transportation by vanpool'' means a 
                        private entity providing vanpool 
                        services in the service area of a 
                        recipient of assistance under this 
                        chapter using a commuter highway 
                        vehicle or vanpool vehicle.
                          (ii) Commuter highway vehicle; 
                        vanpool vehicle.--The term ``commuter 
                        highway vehicle or vanpool vehicle'' 
                        means any vehicle--
                                  (I) the seating capacity of 
                                which is at least 6 adults (not 
                                including the driver); and
                                  (II) at least 80 percent of 
                                the mileage use of which can be 
                                reasonably expected to be for 
                                the purposes of transporting 
                                commuters in connection with 
                                travel between their residences 
                                and their place of employment.
  (j) Buy America.--
          (1) In general.--The Secretary may obligate an amount 
        that may be appropriated to carry out this chapter for 
        a project only if the steel, iron, and manufactured 
        goods used in the project are produced in the United 
        States.
          (2) Waiver.--The Secretary may waive paragraph (1) of 
        this subsection if the Secretary finds that--
                  (A) applying paragraph (1) would be 
                inconsistent with the public interest;
                  (B) the steel, iron, and goods produced in 
                the United States are not produced in a 
                sufficient and reasonably available amount or 
                are not of a satisfactory quality;
                  (C) when procuring rolling stock (including 
                train control, communication, traction power 
                equipment, and rolling stock prototypes) under 
                this chapter--
                          (i) the cost of components and 
                        subcomponents produced in the United 
                        States--
                                  (I) for fiscal years 2016 and 
                                2017, is more than 60 percent 
                                of the cost of all components 
                                of the rolling stock;
                                  (II) for fiscal years 2018 
                                and 2019, is more than 65 
                                percent of the cost of all 
                                components of the rolling 
                                stock; and
                                  (III) for fiscal year 2020 
                                and each fiscal year 
                                thereafter, is more than 70 
                                percent of the cost of all 
                                components of the rolling 
                                stock; and
                          (ii) final assembly of the rolling 
                        stock has occurred in the United 
                        States; or
                  (D) including domestic material will increase 
                the cost of the overall project by more than 25 
                percent.
          (3) Written waiver determination and annual report.--
                  (A) Written determination.--Before issuing a 
                waiver under paragraph (2), the Secretary 
                shall--
                          (i) publish in the Federal Register 
                        and make publicly available in an 
                        easily identifiable location on the 
                        website of the Department of 
                        Transportation a detailed written 
                        explanation of the waiver 
                        determination; and
                          (ii) provide the public with a 
                        reasonable period of time for notice 
                        and comment.
                  (B) Annual report.--Not later than 1 year 
                after the date of enactment of the Federal 
                Public Transportation Act of 2012, and annually 
                thereafter, the Secretary shall submit to the 
                Committee on Banking, Housing, and Urban 
                Affairs of the Senate and the Committee on 
                Transportation and Infrastructure of the House 
                of Representatives a report listing any waiver 
                issued under paragraph (2) during the preceding 
                year.
          (4) Labor costs for final assembly.--In this 
        subsection, labor costs involved in final assembly are 
        not included in calculating the cost of components.
          (5) Rolling stock frames or car shells.--In carrying 
        out paragraph (2)(C) in the case of a rolling stock 
        procurement receiving assistance under this chapter in 
        which the average cost of a rolling stock vehicle in 
        the procurement is more than $300,000, if rolling stock 
        frames or car shells are not produced in the United 
        States, the Secretary shall include in the calculation 
        of the domestic content of the rolling stock the cost 
        of steel or iron that is produced in the United States 
        and used in the rolling stock frames or car shells.
          (6) Certification of domestic supply and 
        disclosure.--
                  (A) Certification of domestic supply.--If the 
                Secretary denies an application for a waiver 
                under paragraph (2), the Secretary shall 
                provide to the applicant a written 
                certification that--
                          (i) the steel, iron, or manufactured 
                        goods, as applicable, (referred to in 
                        this subparagraph as the ``item'') is 
                        produced in the United States in a 
                        sufficient and reasonably available 
                        amount;
                          (ii) the item produced in the United 
                        States is of a satisfactory quality; 
                        and
                          (iii) includes a list of known 
                        manufacturers in the United States from 
                        which the item can be obtained.
                  (B) Disclosure.--The Secretary shall disclose 
                the waiver denial and the written certification 
                to the public in an easily identifiable 
                location on the website of the Department of 
                Transportation.
          (7) Waiver prohibited.--The Secretary may not make a 
        waiver under paragraph (2) of this subsection for goods 
        produced in a foreign country if the Secretary, in 
        consultation with the United States Trade 
        Representative, decides that the government of that 
        foreign country--
                  (A) has an agreement with the United States 
                Government under which the Secretary has waived 
                the requirement of this subsection; and
                  (B) has violated the agreement by 
                discriminating against goods to which this 
                subsection applies that are produced in the 
                United States and to which the agreement 
                applies.
          (8) Penalty for mislabeling and misrepresentation.--A 
        person is ineligible under subpart 9.4 of the Federal 
        Acquisition Regulation, or any successor thereto, to 
        receive a contract or subcontract made with amounts 
        authorized under the Federal Public Transportation Act 
        of 2015 if a court or department, agency, or 
        instrumentality of the Government decides the person 
        intentionally--
                  (A) affixed a ``Made in America'' label, or a 
                label with an inscription having the same 
                meaning, to goods sold in or shipped to the 
                United States that are used in a project to 
                which this subsection applies but not produced 
                in the United States; or
                  (B) represented that goods described in 
                subparagraph (A) of this paragraph were 
                produced in the United States.
          (9) State requirements.--The Secretary may not impose 
        any limitation on assistance provided under this 
        chapter that restricts a State from imposing more 
        stringent requirements than this subsection on the use 
        of articles, materials, and supplies mined, produced, 
        or manufactured in foreign countries in projects 
        carried out with that assistance or restricts a 
        recipient of that assistance from complying with those 
        State-imposed requirements.
          (10) Opportunity to correct inadvertent error.--The 
        Secretary may allow a manufacturer or supplier of 
        steel, iron, or manufactured goods to correct after bid 
        opening any certification of noncompliance or failure 
        to properly complete the certification (but not 
        including failure to sign the certification) under this 
        subsection if such manufacturer or supplier attests 
        under penalty of perjury that such manufacturer or 
        supplier submitted an incorrect certification as a 
        result of an inadvertent or clerical error. The burden 
        of establishing inadvertent or clerical error is on the 
        manufacturer or supplier.
          (11) Administrative review.--A party adversely 
        affected by an agency action under this subsection 
        shall have the right to seek review under section 702 
        of title 5.
          (12) Steel and iron.--For purposes of this 
        subsection, steel and iron meeting the requirements of 
        section 661.5(b) of title 49, Code of Federal 
        Regulations may be considered produced in the United 
        States.
          (13) Definition of small purchase.--For purposes of 
        determining whether a purchase qualifies for a general 
        public interest waiver under paragraph (2)(A) of this 
        subsection, including under any regulation promulgated 
        under that paragraph, the term ``small purchase'' means 
        a purchase of not more than $150,000.
  (k) Participation of Governmental Agencies in Design and 
Delivery of Transportation Services.--Governmental agencies and 
nonprofit organizations that receive assistance from Government 
sources (other than the Department of Transportation) for 
nonemergency transportation services shall--
          (1) participate and coordinate with recipients of 
        assistance under this chapter in the design and 
        delivery of transportation services; and
          (2) be included in the planning for those services.
  (l) Relationship to Other Laws.--
          (1) Fraud and false statements.--Section 1001 of 
        title 18 applies to a certificate, submission, or 
        statement provided under this chapter. The Secretary 
        may terminate financial assistance under this chapter 
        and seek reimbursement directly, or by offsetting 
        amounts, available under this chapter if the Secretary 
        determines that a recipient of such financial 
        assistance has made a false or fraudulent statement or 
        related act in connection with a Federal public 
        transportation program.
          (2) Political activities of nonsupervisory 
        employees.--The provision of assistance under this 
        chapter shall not be construed to require the 
        application of chapter 15 of title 5 to any 
        nonsupervisory employee of a public transportation 
        system (or any other agency or entity performing 
        related functions) to whom such chapter does not 
        otherwise apply.
  (m) Preaward and Postdelivery Review of Rolling Stock 
Purchases.--The Secretary shall prescribe regulations requiring 
a preaward and postdelivery review of a grant under this 
chapter to buy rolling stock to ensure compliance with 
Government motor vehicle safety requirements, subsection (j) of 
this section, and bid specifications requirements of grant 
recipients under this chapter. Under this subsection, 
independent inspections and review are required, and a 
manufacturer certification is not sufficient. Rolling stock 
procurements of 20 vehicles or fewer made for the purpose of 
serving rural areas and urbanized areas with populations of 
200,000 or fewer shall be subject to the same requirements as 
established for procurements of 10 or fewer buses under the 
post-delivery purchaser's requirements certification process 
under section 663.37(c) of title 49, Code of Federal 
Regulations.
  (n) Submission of Certifications.--A certification required 
under this chapter and any additional certification or 
assurance required by law or regulation to be submitted to the 
Secretary may be consolidated into a single document to be 
submitted annually as part of a grant application under this 
chapter. The Secretary shall publish annually a list of all 
certifications required under this chapter with the publication 
required under section 5336(d)(2).
  (o) Grant Requirements.--The grant requirements under 
sections 5307, 5309, and 5337 apply to any project under this 
chapter that receives any assistance or other financing under 
chapter 6 (other than section 609) of title 23.
  (p) Alternative Fueling Facilities.--A recipient of 
assistance under this chapter may allow the incidental use of 
federally funded alternative fueling facilities and equipment 
by nontransit public entities and private entities if--
          (1) the incidental use does not interfere with the 
        recipient's public transportation operations;
          (2) all costs related to the incidental use are fully 
        recaptured by the recipient from the nontransit public 
        entity or private entity;
          (3) the recipient uses revenues received from the 
        incidental use in excess of costs for planning, 
        capital, and operating expenses that are incurred in 
        providing public transportation; and
          (4) private entities pay all applicable excise taxes 
        on fuel.
  (q) Corridor Preservation.--
          (1) In general.--The Secretary may assist a recipient 
        in acquiring right-of-way before the completion of the 
        environmental reviews for any project that may use the 
        right-of-way if the acquisition is otherwise permitted 
        under Federal law.
          (2) Environmental reviews.--Right-of-way acquired 
        under this subsection may not be developed in 
        anticipation of the project until all required 
        environmental reviews for the project have been 
        completed.
  (r) Reasonable Access to Public Transportation Facilities.--A 
recipient of assistance under this chapter may not deny 
reasonable access for a private intercity or charter 
transportation operator to federally funded public 
transportation facilities, including intermodal facilities, 
park and ride lots, and bus-only highway lanes. In determining 
reasonable access, capacity requirements of the recipient of 
assistance and the extent to which access would be detrimental 
to existing public transportation services must be considered.
  (s) Value Capture Revenue Eligible for Local Share.--
Notwithstanding any other provision of law, a recipient of 
assistance under this chapter may use the revenue generated 
from value capture financing mechanisms as local matching funds 
for capital projects and operating costs eligible under this 
chapter.
  (t) Special Condition on Charter Bus Transportation 
Service.--If, in a fiscal year, the Secretary is prohibited by 
law from enforcing regulations related to charter bus service 
under part 604 of title 49, Code of Federal Regulations, for 
any transit agency that during fiscal year 2008 was both 
initially granted a 60-day period to come into compliance with 
such part 604, and then was subsequently granted an exception 
from such part--
          (1) the transit agency shall be precluded from 
        receiving its allocation of urbanized area formula 
        grant funds for such fiscal year; and
          (2) any amounts withheld pursuant to paragraph (1) 
        shall be added to the amount that the Secretary may 
        apportion under section 5336 in the following fiscal 
        year.
  (u) Limitation on Certain Rolling Stock Procurements.--
          (1) In general.--Except as provided in paragraph (5), 
        financial assistance made available under this chapter 
        shall not be used in awarding a contract or subcontract 
        to an entity on or after the date of enactment of this 
        subsection for the procurement of rolling stock for use 
        in public transportation if the manufacturer of the 
        rolling stock--
                  (A) is incorporated in or has manufacturing 
                facilities in the United States; and
                  (B) is owned or controlled by, is a 
                subsidiary of, or is otherwise related legally 
                or financially to a corporation based in a 
                country that--
                          (i) is identified as a nonmarket 
                        economy country (as defined in section 
                        771(18) of the Tariff Act of 1930 (19 
                        U.S.C. 1677(18))) as of the date of 
                        enactment of this subsection;
                          (ii) was identified by the United 
                        States Trade Representative in the most 
                        recent report required by section 182 
                        of the Trade Act of 1974 (19 U.S.C. 
                        2242) as a foreign country included on 
                        the priority watch list defined in 
                        subsection (g)(3) of that section; and
                          (iii) is subject to monitoring by the 
                        Trade Representative under section 306 
                        of the Trade Act of 1974 (19 U.S.C. 
                        2416).
          (2) Exception.--For purposes of paragraph (1), the 
        term ``otherwise related legally or financially'' does 
        not include--
                  (A) a minority relationship or investment; or
                  (B) relationship with or investment in a 
                subsidiary, joint venture, or other entity 
                based in a country described in paragraph 
                (1)(B) that does not export rolling stock or 
                components of rolling stock for use in the 
                United States.
          (3) International agreements.--This subsection shall 
        be applied in a manner consistent with the obligations 
        of the United States under international agreements.
          (4) Certification for rail rolling stock.--
                  (A) In general.--Except as provided in 
                paragraph (5), as a condition of financial 
                assistance made available in a fiscal year 
                under section 5337, a recipient that operates 
                rail fixed guideway service shall certify in 
                that fiscal year that the recipient will not 
                award any contract or subcontract for the 
                procurement of rail rolling stock for use in 
                public transportation with a rail rolling stock 
                manufacturer described in paragraph (1).
                  (B) Separate certification.--The 
                certification required under this paragraph 
                shall be in addition to any certification the 
                Secretary establishes to ensure compliance with 
                the requirements of paragraph (1).
          (5) Special rules.--
                  [(A) Parties to executed contracts.--This 
                subsection, including the certification 
                requirement under paragraph (4), shall not 
                apply to the award of any contract or 
                subcontract made by a public transportation 
                agency with a rail rolling stock manufacturer 
                described in paragraph (1) if the manufacturer 
                and the public transportation agency have 
                executed a contract for rail rolling stock 
                before the date of enactment of this 
                subsection.]
                  [(B)] (A) Rolling stock.--[Except as provided 
                in subparagraph (C) and for a contract or 
                subcontract that is not described in 
                subparagraph (A)] Except as provided in 
                subparagraph (B), this subsection, including 
                the certification requirement under paragraph 
                (4), shall not apply to the award of a contract 
                or subcontract made by a public transportation 
                agency with any rolling stock manufacturer for 
                the 2-year period beginning on or after the 
                date of enactment of this subsection.
                  [(C)] (B) Exception.--[Subparagraph (B)] 
                Subparagraph (A) shall not apply to the award 
                of a contract or subcontract made by the 
                Washington Metropolitan Area Transit Authority.
  (v) Cybersecurity Certification for Rail Rolling Stock and 
Operations.--
          (1) Certification.--As a condition of financial 
        assistance made available under this chapter, a 
        recipient that operates a rail fixed guideway public 
        transportation system shall certify that the recipient 
        has established a process to develop, maintain, and 
        execute a written plan for identifying and reducing 
        cybersecurity risks.
          (2) Compliance.--For the process required under 
        paragraph (1), a recipient of assistance under this 
        chapter shall--
                  (A) utilize the approach described by the 
                voluntary standards and best practices 
                developed under section 2(c)(15) of the 
                National Institute of Standards and Technology 
                Act (15 U.S.C. 272(c)(15)), as applicable;
                  (B) identify hardware and software that the 
                recipient determines should undergo third-party 
                testing and analysis to mitigate cybersecurity 
                risks, such as hardware or software for rail 
                rolling stock under proposed procurements; and
                  (C) utilize the approach described in any 
                voluntary standards and best practices for rail 
                fixed guideway public transportation systems 
                developed under the authority of the Secretary 
                of Homeland Security, as applicable.
          (3) Limitations on statutory construction.--Nothing 
        in this subsection shall be construed to interfere with 
        the authority of--
                  (A) the Secretary of Homeland Security to 
                publish or ensure compliance with requirements 
                or standards concerning cybersecurity for rail 
                fixed guideway public transportation systems; 
                or
                  (B) the Secretary of Transportation under 
                section 5329 to address cybersecurity issues as 
                those issues relate to the safety of rail fixed 
                guideway public transportation systems.

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