The bill language in full can be found here. Specifically on the transit front, here is the language with links to the corresponding laws. Now I know this is a bit hard to get through but I'll try and translate and commentate in the next post up. So if you don't want to read lawyer speak, go up one post.
(f) GRANTS TO PROVIDE FOR ADDITIONAL AND IMPROVED PUBLIC TRANSPORTATION SERVICE.—
(1) IN GENERAL.—Of the funds deposited into the Transportation Sector Emission Reduction Fund each year pursuant to subsection (d), 65 percent shall be distributed to designated recipients as defined in section 5307 of Title 49, United States Code, to maintain or improve public transportation through activities eligible under that section.
(2) DISTRIBUTION.—Of the funds made available under paragraph (1)—
(A) 60 percent shall be distributed according to the formula in subsections (a) through (c) of section 5336 of Title 49, United States Code; and
(B) 40 percent shall be distributed according to the formula in section 5340 of Title 49, United States
(3) TERMS AND CONDITIONS.—Any grant provided under this section shall be subject to the terms and conditions applicable to a grant made under section 5307 of Title 49, United States Code.
(4) COST SHARE.—The Federal government’s share of costs shall be as specified in section 5307(e) of Title 49, United States Code.
(g) GRANTS FOR CONSTRUCTION OF NEW PUBLIC TRANSPORTATION PROJECTS.—
(1) IN GENERAL.—Of the funds deposited into the Transportation Sector Emission Reduction Fund each year pursuant to subsection (d), 30 percent shall be distributed to State and local governmental authorities for design, engineering, and construction of new fixed guideway transit projects or extensions to existing fixed guideway transit systems.
(2) APPLICATIONS.—Applications for grants under this subsection shall be reviewed according to the process and criteria established in section 5309(d) of Title 49, United States Code, for major capital investments and section 5309(e) of Title 49, United states Code for other projects.
(3) TERMS AND CONDITIONS.—Grant funds awarded under this subsection shall be subject to the terms and conditions applicable to a grant made under section 5309 of Title 49, United States Code.
(h) GRANTS FOR EFFICIENCY AT PUBLIC TRANSIT AGENCIES, TRANSPORTATION ALTERNATIVES, AND
TRAVEL DEMAND REDUCTION PROJECTS.—
(1) IN GENERAL.— Of the funds deposited into the Transportation Sector Emission Reduction Fund each year pursuant to subsection (d), 5 percent shall be awarded to State and local governmental authorities as defined in section 5307 of Title 49, United States Code, to assist in reducing the direct and indirect greenhouse‐gas emissions of their systems, through—
(A) programs to reduce vehicle miles traveled;
(B) bicycle and pedestrian infrastructure, including trail networks integrated with transportation plans or bicycle mode‐share targets; and
(C) programs to establish or expand telecommuting or carpool projects that do not include new roadway capacity.
(2) ELIGIBLE USES OF FUNDS.—A recipient of funds under paragraph (1) shall use the funds for—
(A) improvements to lighting, heating, cooling, or ventilation systems in stations and other facilities that reduce direct or indirect greenhouse‐gas emissions;
(B) adjustments to signal timing or other vehicle controlling systems that reduce direct or indirect greenhouse‐gas emissions;
(C) purchasing or retrofitting rolling stock to improve efficiency or reduce greenhouse‐gas emissions; or
(D) improvements to energy distribution systems.
(3) DISTRIBUTION OF FUNDS.—In determining the recipients of grants under this subsection,
applications shall be evaluated based on the total direct and indirect greenhouse‐gas emissions
reductions that are projected to result from the project and projected reductions as a percentage of the entity’s total direct and indirect emissions.
(4) GOVERNMENT SHARE OF COSTS.—The Federal government’s share of the cost of an activity funded using amounts made available under this subsection may not exceed 80 percent of the cost of the activity.
(i) CONDITION FOR RECEIPT OF FUNDS.—To be eligible to receive funds under this section, projects or activities must be part of an integrated State‐wide transportation plan that shall‐‐
(1) include all modes of surface transportation;
(2) integrate transportation data collection, monitoring, planning, and modeling;
(3) report on estimated greenhouse‐gas emissions;
(4) be designed to reduce greenhouse‐gas emissions from the transportation sector; and
(5) be certified by the Administrator as consistent with the purposes of this Act.