Page:United States Statutes at Large Volume 119.djvu/1598

 119 STAT. 1580

PUBLIC LAW 109–59—AUG. 10, 2005

also does not apply to projects for which the Secretary has received an application for final design before such date of enactment. ‘‘(g) LETTERS OF INTENT, FULL FUNDING GRANT AGREEMENTS, AND EARLY SYSTEMS WORK AGREEMENTS.— ‘‘(1) LETTERS OF INTENT.— ‘‘(A) AMOUNTS INTENDED TO BE OBLIGATED.—The Secretary may issue a letter of intent to an applicant announcing an intention to obligate, for a capital project under this section, an amount from future available budget authority specified in law that is not more than the amount stipulated as the financial participation of the Secretary in the project. When a letter is issued for fixed guideway projects, the amount shall be sufficient to complete at least an operable segment. ‘‘(B) TREATMENT.—The issuance of a letter under subparagraph (A) is deemed not to be an obligation under sections 1108(c), 1108(d), 1501, and 1502(a) of title 31 or an administrative commitment. ‘‘(2) FULL FUNDING GRANT AGREEMENTS.— ‘‘(A) TERMS.—The Secretary may make a full funding grant agreement with an applicant. The agreement shall— ‘‘(i) establish the terms of participation by the Government in a project under this section; ‘‘(ii) establish the maximum amount of Government financial assistance for the project; ‘‘(iii) cover the period of time for completing the project, including a period extending beyond the period of an authorization; and ‘‘(iv) make timely and efficient management of the project easier according to the law of the United States. ‘‘(B) SPECIAL FINANCIAL RULES.— ‘‘(i) IN GENERAL.—A full funding grant agreement under this paragraph obligates an amount of available budget authority specified in law and may include a commitment, contingent on amounts to be specified in law in advance for commitments under this paragraph, to obligate an additional amount from future available budget authority specified in law. ‘‘(ii) STATEMENT OF CONTINGENT COMMITMENT.— The agreement shall state that the contingent commitment is not an obligation of the Government. ‘‘(iii) INTEREST AND OTHER FINANCING COSTS.— Interest and other financing costs of efficiently carrying out a part of the project within a reasonable time are a cost of carrying out the project under a full funding grant agreement, except that eligible costs may not be more than the cost of the most favorable financing terms reasonably available for the project at the time of borrowing. The applicant shall certify, in a way satisfactory to the Secretary, that the applicant has shown reasonable diligence in seeking the most favorable financing terms. ‘‘(iv) COMPLETION OF OPERABLE SEGMENT.—The amount stipulated in an agreement under this paragraph for a fixed guideway project shall be sufficient to complete at least an operable segment. ‘‘(C) BEFORE AND AFTER STUDY.—

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