Section 1. Limitations on advanced payments for bus rolling stock
Section 5323 of title 49, United States Code, is amended by adding at the end the following:
(1) In general
Notwithstanding any provision of this chapter or part 200 of title 2, Code of Federal Regulations, or any successor regulation, a recipient may use assistance made available under this chapter to make an advance payment on a bus rolling stock vehicle without the transit vehicle manufacturer obtaining a performance bond or similar financial arrangement.
(2) Limitations
A recipient making an advance payment under paragraph (1)—
(A) shall have—
(i) a signed purchase order and executed contract with a transit vehicle manufacturer that includes advance payment provisions;
(ii) preaward authority; and
(iii) met the requirements under subsection (m) and section 5318(e) of this title; and
(B) shall not provide an advanced payment that is more than 20 percent of the total purchase order value.