This bill amends federal transportation law to allow certain funding recipients to assume responsibilities related to environmental reviews. Specifically, it enables eligible transit agencies to take over determinations for categorical exclusions under the National Environmental Policy Act (NEPA). An eligible recipient must be a direct fund recipient in an urbanized area with over 200,000 people and demonstrate sufficient legal, technical, and financial capacity.

Under this legislation, the Secretary may assign, and eligible recipients may assume, the responsibility for determining if designated activities qualify as categorical exclusions, thereby exempting them from more extensive environmental assessments or impact statements. These determinations must adhere to criteria established by the Secretary, including provisions for public information availability. Furthermore, the bill allows recipients to assume responsibilities for environmental review, consultation, or other related actions required under other federal laws applicable to categorical exclusions, with the exception of government-to-government consultations with Indian Tribes.

When an eligible recipient assumes these responsibilities, they become solely responsible and liable for complying with and carrying out the applicable federal laws. The Secretary and the recipient must establish a memorandum of understanding (MOU), after public notice and comment, outlining the assigned responsibilities and conditions, including how the Secretary might reassume duties. MOUs typically last three years, renewable, but can extend to five years for experienced recipients, and require the recipient to accept Federal court jurisdiction. The Secretary is mandated to monitor compliance and performance, and can terminate the assignment if the recipient fails to adequately carry out its responsibilities after a notification and corrective action period. Recipients are also deemed a Federal agency for the purpose of the exercised law and can use apportioned funds for associated legal fees.