PUBLIC LAW 103-272—JULY 5, 1994 108 STAT. 819 financial capacity to construct, manage, and operate the project; and (B) maximizing potential contributions to the cost of the project by State, local, and private sector entities, including donation of in-kind services and materials. (2) The Secretary shall award a grant to each finalist to be used to participate in the final phase of the competition under procedures the Secretary prescribes. A grant may not be more than 80 percent of the cost of participating, A finalist may not receive more than one-third of the amount made available under subsection (h)(1)(A) of this section. (3) Not later than July 15, 1992, the Secretary shall select from among the 3 finalists a public entity with which to make a full financing grant agreement. (d) ENVIRONMENTAL IMPACT.—Not later than 270 days after a public entity is selected under subsection (c) of this section, the Secretary shall approve and publish in the Federal Register a notice announcing either a finding of no significant impact or a draft environmental impact statement for the project. The alternatives analysis for the project shall include a decision on whether to construct the project. If a draft statement is published, the Secretary, not later than 180 days after publication, shall approve and publish in the Federal Register a notice of completion of a final environmental impact statement. (e) FULL FINANCING GRANT AGREEMENT. —Not later than 60 days after carrying out the requirements of subsection (d) of this section, the Secretary shall make a full financing grant agreement under section 5309 of this title with the public entity selected under subsection (c) of this section to construct the project. The agreement shall provide that the system vendor for the project shall finance— (1) 100 percent of any deficit incurred in operating the project in the first 2 years of revenue operations of the project; and (2) 50 percent of any deficit incurred in operating the project in the 3d year of revenue operations of the project. (f) NOTICE TO PROCEED. -—Not later than 30 days after making the full financing grant agreement, the Secretary shall issue a notice to proceed with construction. (g) OPTION NOT TO CONSTRUCT AND REAWARDING THE GRANT.— (1) Not later than 30 days after completing preliminary engineering and design, the selected public entity shall decide whether to proceed to constructing the project. If the entity decides not to proceed— (A) the Secretary shall not make the full financing grant agreement; (B) remaining amounts received shall be returned to the Secretary and credited to the Mass Transit Account of the Highway Trust Fund; and (C) the Secretary shall use the credited amount and other amounts to be provided under this section to award to another entity selected under subsection (c)(1) of this section a grant under section 5309 of this title to construct the project. (2) Not later than 60 days after a decision is made under paragraph (1) of this subsection, a grant shall be awarded under paragraph (1)(C) of this section after completing a competitive process for selecting the grant recipient. Federal Register, publication.
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