Authority: Titles 33.1 and 58.1, Code of Virginia.

A. Of the amounts shown as Commonwealth Transportation funds, $52,744,300 $90,362,600 the first year and $55,266,000 $93,862,400 the second year is appropriated from the Transportation Trust Fund.

B.1. The Commonwealth Transportation Board shall allocate all funds for Mass Transit Assistance, other than Federal and Regulatory Programs, as provided in § 58.1-638, Code of Virginia.

2. The allocation of Formula Assistance to each recipient shall be limited to the recipient's eligibility for state administrative, ridesharing, fuel, tires, and maintenance parts and supplies assistance as defined in § 58.1-638, Code of Virginia. When the initial distribution to a recipient is greater than the recipient's eligibility to receive Formula Assistance, the Commonwealth Transportation Board may transfer the surplus funds to the statewide Capital Assistance distribution under this program.

C. Out of the amounts for Federal and Regulatory Programs funds estimated at $190,000 the first year and $190,000 the second year from the Commonwealth Transportation Fund shall be paid to the Washington Metropolitan Area Transit Commission, as provided in the Washington Metropolitan Transit Regulation Compact.

D. Funds from a stable and reliable source, as required in Public Law 96-184, as amended, are to be provided to Metro Rail from payments authorized and allocated in this program and pursuant to § 58.1-1720, Code of Virginia.

E. Funds appropriated to the Department of Rail and Public Transportation and allocated to the Northern Virginia Transportation Commission to be allocated to its member jurisdictions are held in trust by the Commission for those jurisdictions until released by specific authorization from the governing bodies of the jurisdictions for the purpose for which funds were appropriated.

F. The Commonwealth Transportation Board shall operate a program entitled the Transportation Efficiency Improvement Fund (TEIF). The purpose of the TEIF program is to reduce traffic congestion by supporting transportation demand management programs designed to reduce the use of single occupant vehicles and to increase the use of high occupancy vehicle modes. Using transportation revenues generally available to the Board, funds shall be apportioned as determined by the Board to designated transportation projects in addition to funds allocated pursuant to § 33.1-23.1, Code of Virginia. Total TEIF program funding shall not exceed $1,900,000 the first year and $1,900,000 the second year. Eligible applicants for grants shall include local governing bodies, transportation district commissions, planning district commissions, metropolitan planning organizations, public service corporations, and transportation management associations whose applications are approved by an eligible public recipient or whose Board includes elected representatives from member jurisdictions. At least 50 percent of all grants-in-aid shall be distributed to eligible public residents with a local match requirement left to the Commonwealth Transportation Board.

G. From the Commonwealth Transportation Fund, $5,000,000 the second year is designated for the Transit Performance Incentive Program. This program is to be administered by the Department of Rail and Public Transportation. The basis for awards from this program shall be good or improved transit service efficiency and effectiveness, and the achievement of locally established transit performance goals. Transit performance incentive grant amounts shall be established that use a $5,000 minimum grant and that also use the existing transit formula assistance program methodology. Any funds remaining in this program after grants are awarded each year shall be carried forward to the next fiscal year and may be used to augment this or other state transit assistance programs as described in § 58.1-638.4, Code of Virginia.

H.1. Out of amounts for Capital Assistance, $3,500,000 in the first year shall be provided from federal Surface Transportation Program (STP) funds for statewide bus purchases. The Department shall provide this capital assistance through a competitive grant program on an as needed basis, and require a 20 percent local match.

2. The Commonwealth Transportation Board shall also develop a unified, statewide bus purchase request for consideration by the United States Congress as part of its fiscal year 1999 and fiscal year 2000 transportation appropriation acts. Such request shall include provisions for up to $7.5 million each year in federal discretionary Section 3 bus purchase funds and for each local government or transit operator to provide any required local matching funds. The Secretary of Transportation shall notify the Chairmen of the Senate Finance and House Appropriations Committees when these requests are presented to Congress.

I. The Commonwealth Transportation Board shall provide $500,000 in Highway Maintenance and Operating Funds if federal matching funds become available for a commuter rail project in the Dulles Corridor.

J. From the Highway Maintenance and Operating Fund, $5,000,000 shall be provided in the first year to the Tidewater Transportation District Commission (the Commission) for development of the Virginia Beach-Norfolk Transit System. These funds shall be disbursed wholly or in part by the Department of Rail and Public Transportation, upon a demonstration by the Commission of satisfactory evidence of the need to further the development of a transit system in Hampton Roads. Urban and secondary highway allocations shall not be impacted by this provision.