The bill makes it easier for transit agencies to pay for buses upfront without needing extra financial guarantees. This helps them get new buses more quickly and efficiently.
This bill allows a state or local authority (e. g., a transit authority) to use public transportation grants to make a partial advance payment for bus rolling stock (e. g., transit buses). Specifically, a public transportation grant recipient may use grant funds to make an advance payment of not more than 20% of the total purchase order value of a bus rolling stock vehicle without requiring the vehicle manufacturer to provide a performance bond (or similar financial arrangement). In order to make an advance payment, the recipient must meet certain requirements. For example, the recipient must have a signed purchase order and an executed contract with a vehicle manufacturer that includes advance payment provisions.
