(c)

1. (1) Except as provided in paragraph (2), funding shall be allocated by the Controller on a formula basis consistent with the requirements of this part and with Section 39719 of the Health and Safety Code, upon a determination by the Department of Transportation that the expenditures proposed by a recipient transit agency meet the requirements of this part and guidelines developed pursuant to this section, and that the amount of funding requested is currently available.
2. (2) For the portion of funding allocated pursuant to paragraph (1) under the formula set forth in Section 99314 of the Public Utilities Code, the Controller shall allocate that funding for the 2019–20 to 2025–26, inclusive, fiscal years based on the individual operator ratios described in Section 99314.10 of the Public Utilities Code.

(f) Moneys for the program shall be expended to provide transit operating or capital assistance that meets any of the following:

1. (1) Expenditures that directly enhance or expand transit service by supporting new or expanded bus or rail services, new or expanded waterborne transit, or expanded intermodal transit facilities, and may include equipment acquisition, fueling, and maintenance, and other costs to operate those services or facilities.
2. (2) Operational expenditures that increase transit mode share.
3. (3) Expenditures related to the purchase of zero-emission buses, including electric buses, and the installation of the necessary equipment and infrastructure to operate and support these zero-emission buses.

(g)

1. (1) For a recipient transit agency whose service area includes disadvantaged communities, as identified pursuant to Section 39711 of the Health and Safety Code, at least 50 percent of the total moneys received pursuant to this part shall be expended on projects or services that meet the requirements of subdivisions (d), (e), and (f) and benefit the disadvantaged communities, as identified consistent with the guidance developed by the State Air Resources Board pursuant to Section 39715 of the Health and Safety Code.

2. (2) The requirement of paragraph (1) is waived if the recipient transit agency expends the funding provided pursuant to this section on any of the following:

   1. (A) New or expanded transit service that connects with transit service serving disadvantaged communities, as identified pursuant to Section 39711 of, or in low-income communities, as defined in paragraph (2) of subdivision (d) of Section 39713 of, the Health and Safety Code.
   2. (B) Transit fare subsidies and network and fare integration technology improvements, including, but not limited to, discounted or free student transit passes.
   3. (C) The purchase of zero-emission transit buses and supporting infrastructure.
3. (3) Expenditures made pursuant to paragraph (2) shall be deemed to have met all applicable requirements established pursuant to Section 39713 of the Health and Safety Code.
4. (4) This section does not require a recipient transit agency to provide individual rider data to the Department of Transportation or to the State Air Resources Board.

(j) A recipient transit agency shall submit the following information to the Department of Transportation before seeking a disbursement of funds pursuant to this part:

1. (1) A list of proposed expense types for anticipated funding levels.
2. (2) The documentation required by the guidelines developed pursuant to this section to demonstrate compliance with subdivisions (d), (e), (f), and (g).

(k) For capital projects, a recipient transit agency shall also do all of the following:

1. (1) Specify the phases of work for which the recipient transit agency is seeking an allocation of moneys from the program.
2. (2) Identify the sources and timing of all moneys required to undertake and complete any phase of a project for which the recipient transit agency is seeking an allocation of moneys from the program.
3. (3) Describe intended sources and timing of funding to complete any subsequent phases of the project, through construction or procurement.