Section 654 - Program authorizationsThe department is hereby authorized, within the limitations hereinafter provided:
(1) To undertake and to provide financial support for research projects, by contract or otherwise, concerning rural and intercity common carrier surface transportation.(2) To undertake projects and to make project grants to transportation organizations or transportation companies:(i) For the purpose of studies, analysis, planning and development of programs for rural and intercity common carrier surface transportation service and facilities, and for the purpose of activities related to the planning, engineering and designing of specific rural and intercity common carrier transportation projects which are a part of a comprehensive program, including, but not limited to, activities such as studies relating to management, operation, capital requirements and economic feasibility, to the preparation of engineering and architectural surveys, plans and specifications, and to other similar or related activities preliminary to and in preparation for the construction, acquisition or improved operation of rural and intercity common carrier surface transportation systems, facilities and equipment.(ii) To provide for research, development and demonstration projects in all phases of rural and intercity common carrier surface transportation (including the development, testing and demonstration of new facilities, equipment, techniques and methods) to assist in the solution of rural and intercity common carrier surface transportation problems, in the improvement of rural and intercity common carrier surface transportation service, and the contribution of such service toward meeting total rural and intercity common carrier surface transportation needs at minimum cost.(iii) To provide for programs designed solely to advertise, promote and stimulate the development and use of rural and intercity common carrier surface transportation facilities; provided that advertising costs shall not exceed 1 1/2 % of the total budget of a transportation organization or transportation company.(iv) To finance or assist in financing the provision or continuation of necessary rural and intercity common carrier surface transportation service, to permit continuation of and/or needed improvements in services which are not self-supporting, and to permit services which may be socially and economically desirable but not capable of generating a net income. Each project and project grant shall be subject to annual review and renewal by the secretary. Each project grant shall be based upon a program or plan approved by the department as in furtherance of a coordinated rural and intercity common carrier surface transportation plan for the Commonwealth, and not involving unnecessary and unfair competition. No State grant shall be made for a particular project unless the department determines and finds for said project that: (A) the project is necessary in the public interest; and(B) the intercity and rural common carrier is taking or will take continuing action to improve the service and hold losses to a minimum. No agreement referred to in this paragraph (2) shall impair, suspend, contract, enlarge or extend or affect in any manner the powers of the Pennsylvania Public Utility Commission or the Interstate Commerce Commission or the United States Railway Association otherwise applicable by law.
(3) To undertake capital projects and make capital project grants to transportation organizations and/or transportation companies if the primary purpose thereof, as determined by the department which determination shall be conclusive, is to facilitate and improve rural and intercity common carrier surface transportation, in accordance with the programs of the department.(3.1) To make grants from the State Lottery Fund to transportation companies, county transportation systems and local transportation organizations to pay estimated transit losses resulting from providing:(i) Free service or local common carrier mass transportation systems to persons 65 years or older when such passage is on fixed route public transportation services during nonpeak riding hours and on holidays and weekends. The losses resulting from granting service on mass transportation systems shall be reimbursable at 75% of such system's average fare multiplied by the number of trips made by senior citizens participating in such free transit program. Transit systems that currently receive a program reimbursement based upon a percentage of average fare greater than 75% shall receive their current amount of senior citizen program reimbursement until such time as the amount of reimbursement for these systems equals 75% of the average fare times the number of senior citizens trips: Provided, however, That reimbursement for the fiscal year 1980-1981 shall be calculated using the average fares as of January 1, 1980.(ii) Free or reduced fare on shared ride county transportation systems for persons 65 years or older: (A) In case of free service on such county systems, the county shall be reimbursed at 75% of the cost incurred or to be incurred in operating and maintaining such system, with the remainder of any such cost being paid by the county.(B) In case of reduced fare services on such county systems, the county shall be reimbursed at the same rate and under the same conditions as provided in subparagraph (iii).(iii) Reduced fare services on local common carrier mass transportation systems to persons 65 years of age or older when such passage is on shared ride public or contract transportation services during regular hours of operation. On shared public transportation, losses are reimbursable only if the elderly person pays 25¢ or 25% of the cost of the individual fare, whichever is greater.(iv) In no case shall the reimbursements for each succeeding year exceed the prior year's reimbursements increased by a percentage equal to the percentage increase in granting costs for all local transportation organizations, county transportation systems and transportation companies for the most recently completed state fiscal year as compared to the fiscal year immediately preceding such year.(v) The department shall promulgate such rules and regulations as are necessary to carry out the purposes of this subparagraph. In accordance with section 2203-a(27) of the act of April 9, 1929 (P.L. 177, No. 175), known as "The Administrative Code of 1929," no such regulation shall take effect until they are submitted to the Department of Aging for comment.(4) In view of the particular sensitivity of special instrumentalities and agencies of the Commonwealth created to serve or coordinate the local transportation needs of substantial metropolitan areas, no passenger service project for use exclusively or principally in the local service area of any such agency or instrumentality in which a city or county of the first or second class has membership, shall receive a project grant except in accordance with a system of priorities agreed upon by the department and such agency or instrumentality. In the case of a project grant for a passenger service project to be operated exclusively or principally within the local service areas of such agency or instrumentality no project grant shall be made except in accordance with agreements by the department and such agency or instrumentality with respect to such use. In the case of a project not falling within the scope of the preceding sentence but covering use both within and without the local service area of such agency or instrumentality, the project grant shall require that the routes, schedules, and fares applicable only within such service areas shall be determined only after consultation with such agency or instrumentality.(5) Projects may be undertaken and project grants may be made with reference to any appropriate project, irrespective of when it was first commenced or considered and regardless of whether costs with respect thereto shall have been incurred prior to the time the project is undertaken or the project grant is applied for or made.1976, Feb. 11, P.L. 14, No. 10, § 4, imd. effective. Amended 1980, Oct. 17, P.L. 1083, No. 183, § 3, imd. effective.