Authority: Titles 33.1 and 58.1, Code of Virginia.

A.1. Except as provided in Item 448 A, the Commonwealth Transportation Board shall allocate all monies in the Commonwealth Mass Transit Fund, as provided in § 58.1-638, Code of Virginia. The total appropriation for the Commonwealth Mass Transit Fund is $186,035,124 the first year and $194,366,436 the second year from the Transportation Trust Fund.

2. Included in Human Service Transportation Programs is $1,500,000 the first year and $2,500,000 the second year from the Commonwealth Mass Transit Trust Fund. These allocations are designated for “paratransit” capital projects and enhanced transportation services for the elderly and disabled.

3. In accordance with paragraph A 1, $146,911,125 the first year and $152,881,320 the second year is the estimated allocation to statewide Formula Assistance as provided in § 58.1-638, Code of Virginia. The allocation of Formula Assistance to each recipient shall be limited to the recipient's maximum eligibility as defined in § 58.1-638, Code of Virginia. When the initial allocation 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 program for distribution under that program. The Commonwealth Transportation Board may hold harmless from a reduction in state formula assistance any transit system that maintains service levels from the previous year.

4. In accordance with Paragraph A 1, $35,445,961 the first year and $36,728,340 the second year from the Commonwealth Mass Transit Fund is the estimated allocation to statewide Capital Assistance.

5. From the amounts appropriated in this Item from the Commonwealth Mass Transit Fund, $2,126,758 the first year and $2,203,701 the second year is the estimated allocation to statewide Special Programs as provided in § 58.1-638, Code of Virginia.

6. Not included in this appropriation is an amount estimated at $22,913,649 the first year and $23,382,741 the second year allocated to transit agencies from federal sources for the Surface Transportation Program (STP) and the Minimum Guarantee program.

B. 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 and projects designed to reduce the movement of passengers and freight on Virginia's highway system. 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 $4,000,000 the first year and $4,000,000 the second year.

C.  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.

D.  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.

E.  It is the intent of the Governor and General Assembly that the principles of local maintenance of effort, transit sustainability, public benefit, and asset management shall be incorporated into all public transportation programs for which funds are appropriated by the General Assembly and allocated by the Commonwealth Transportation Board.  Beginning in the first year, the Director, Department of Rail and Public Transportation shall recommend, and the Board may consider, the establishment of a maintenance of effort requirement to ensure sustained local investment for public transportation operations.  In addition, the director shall examine and report to the Governor, the General Assembly, and the Commonwealth Transportation Board on the establishment and incorporation of all principles no later than June 30, 2009.  In the second year, the Commonwealth Transportation Board shall begin to incorporate such principles in the allocation of public transportation funding for FY 2010.

F. Notwithstanding the provisions of § 58.1-638 subdivision 4f, for the second year, at the written request of the governing board of the transit property,  the Commonwealth Transportation Board shall allocate no more than the fiscal year 2009 capital allocation from the Mass Transit Fund to the operating expenses of such transit property in accordance with § 58.1-638 subdivision 4b.  In determining such amount for allocation, only the funds available for capital purposes in the Commonwealth Mass Transit Fund, exclusive of any federal funding or debt financing, shall be included.  Each transit system may flex a portion of their capital grant for operating expenses up to the amount of operating assistance that would have been available for each system in fiscal year 2009, based on the Six-Year Program adopted by the Commonwealth Transportation Board in June 2008. Each transit system shall provide a report to DRPT detailing the actual amount of capital funds used to support operations of the transit system, as well as an estimate of any foregone federal, state, local or private sources of capital funding.