Authority: Titles 33.1 and 58.1, Code of Virginia.

A. Of the amounts shown as Commonwealth Transportation funds, $90,362,600 the first year and $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 Public Transit Capital Fund, pursuant to passage of Senate Bill 1256. The Commonwealth Transportation Board is hereby authorized to allocate these funds as grants or matching funds, including funds used for debt service payments, for major transit capital projects in the Commonwealth. In addition, out of this amount, up to $1,000,000 shall be apportioned for any locally approved expansion of the Greater Richmond Transit Company. The Secretary of Transportation shall report all allocations from this fund to the Chairmen of the Senate Finance and House Appropriations Committees.

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. The Commonwealth Transportation Board shall provide for the matching funds required to receive the maximum federal funds that may be available for the Dulles Corridor Rapid Transit Project.

J. From the Highway Maintenance and Operating Fund, $5,000,000 the first year and $1,900,000 in the second year shall be provided to the Tidewater Transportation District Commission (the Commission) for development of the Virginia Beach-Norfolk Transit System. Second-year funding shall be provided if (i) a majority of voters in the City of Virginia Beach, and any other affected locality that decides to hold a referendum, support a November 1999 referendum to approve the development and financing of the proposed Virginia Beach-Norfolk Transit System or (ii) a referendum on the question is not held by November 1999. Any funds appropriated in the second year shall be expended solely for preparation, submission, and revision, if any, of the Environmental Impact Statement (EIS) relating to the proposed Norfolk Naval Base Alignment and the proposed transit link to the Norfolk International Airport. If a majority of the voters in Virginia Beach do not support the proposed Virginia Beach-Norfolk Transit System in a November 1999 referendum, the Commonwealth Transportation Board may reallocate the funds appropriated to the project in the second year, in accordance with Item 514. If a majority of the voters in Virginia Beach support the proposed Virginia Beach-Norfolk Transit System in a November 1999 referendum, as do the citizens in any other affected locality that decides to hold a referendum, the Tidewater Regional Transportation District, the Commonwealth Transportation Board, the Virginia Department of Transportation, and Department of Rail and Public Transportation shall work cooperatively to develop a proposed financing plan for the 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.

K. The Department of Rail and Public Transportation is authorized to use such funds as may be allocated to the Department to negotiate contracts with private, nonprofit organizations for the promotion and advancement of rail transit.

L.1. Out of this appropriation, up to $5,140,000 the second year shall be provided to the Greater Richmond Transit Company (GRTC) for the development and operation in or into Chesterfield County, Henrico County, Hanover County and the City of Colonial Heights of new local service GRTC routes, new GRTC express transit routes or extensions of existing transit routes. Each new or extended transit route shall be approved by the local governing body that is authorized herein to receive the new or extended service, prior to the expenditure of these funds for capital or operating purposes for such service. After local approval, the Commonwealth Transportation Board shall determine how to properly allocate the funding from the sources designated in this Item to accomplish the purposes authorized herein.

2. The State Treasurer is directed to assist in the financing of the transit vehicles, utilizing the most appropriate financing mechanism available to the Treasury Board.

3. Fund sources appropriated from this Item include $1,000,000 in federal Temporary Assistance for Needy Family funds (TANF) for TANF-eligible clients. The Department of Social Services shall work with GRTC to obtain federal approval to utilize TANF funding to purchase and operate buses and vans in the Greater Richmond area to transport low-income individuals to and from jobs. Other fund sources in this appropriation include: up to $1,000,000 from Congestion Mitigation and Air Quality funds allocated to the Richmond Metropolitan Planning Organization; up to $300,000 from the Transportation Efficiency Improvement Fund (TEIF); up to $1,000,000 from federal statewide bus purchase funds; and up to $1,000,000 from the High Priority Transit Project Fund. In addition, the Commonwealth Transportation Board shall match dollar-for-dollar any private sector donations provided with up to $840,000 in transit formula assistance capital funds.

4. The Governor and the General Assembly shall also give priority consideration for an additional appropriation of up to $8,000,000 nongeneral fund the first year of the 2000-02 budget from any available state or federal funds eligible for future mass transit appropriations for the continued operation of the approved new or extended transit routes.