Ch. 655                                    1996 LAWS OF MARYLAND

(i) Means the number of annual platform miles and annual platform
hours of fixed route, scheduled local bus service, that previously replaced comparable
service operated by the Washington Metropolitan Area Transit Authority, plus the
number of annual platform miles and annual platform hours of any new fixed route.
scheduled local bus service added after June 30, 1989; and

(ii) Is limited to service operated by or on behalf of and in
Montgomery County or Prince George's County.

(3)     "Costs" means:

(i) Operating costs of eligible local bus service, plus operating costs
under § 10-205 of this subtitle; and

(ii) An allowance for the replacement of buses used in eligible local
service, which shall equal the cost of such buses divided by their useful life.

(4)     "Service deficit" means costs less:

(i) The greater of revenues collected under this section and §
10-205(b) of this subtitle or 50 percent of the costs; and

(ii) All federal operating assistance.

(b) Subject to the appropriation requirements and budgetary provisions of §
3-216 of this article and upon receipt of an approval of a grant application in the form or
detail as the Secretary shall reasonably require, the Department shall provide for annual
grants to Prince George's County and Montgomery County for eligible local bus service as
defined in this section. The amount of these grants shall be equal to:

(1)     100 percent of the service deficit attributable to each county; less

(2)     Each county's share of the Department's annual grant to the
Washington Suburban Transit District as determined under § 10-205(b) of this subtitle.

(c)     The Department's grant for any eligible local bus service may not be greater
than the operating grant that the Department would incur from the same bus service if
operated by the Washington Metropolitan Area Transit Authority. This requirement shall
be applied on a line by line basis.

(d)     Except with the specific approval of the Secretary, notwithstanding the
provisions of § 10-205 of this subtitle, the combined grants for bus service to each county
under this section and § 10-205(b) of this subtitle may not exceed the level of the
combined grants for the prior fiscal year adjusted for inflation by the projected consumer
price index CPI-U for the fiscal year in which the grant under this section is being
awarded, using the actual consumer price index CPI-U at the close of the fiscal year-
Adjustments shall be made to increase or decrease the combined grants in the subsequent
fiscal year to reflect the actual inflation rate.

(E) NOTWITHSTANDING THE PROVISIONS OF SUBSECTION (B) OF THIS
SECTION THE SECRETARY MAY AUTHORIZE PAYMENT FOR THE COST OF NEW
ELIGIBLE LOCAL BUS SERVICE THAT DOES NOT RECOVER 50 PERCENT OF ITS
OPERATING COSTS FOR THE FIRST 2 YEARS OF ITS OPERATION. PROVIDED THAT:

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