1. (a) The following public or private projects are eligible for financial assistance:

   1. (1) construction of a federal-aid highway, including required preliminary studies;
   2. (2) a transit project; or

   3. (3) for the expenditure of secondary funds, a transit project including a project eligible for assistance under Title 49, United States Code, §5310, or the planning, development, construction, maintenance, or operation of a public road, provided that:

      1. (A) the project is eligible for assistance under Title 23 or Title 49, United States Code; and
      2. (B) the department is authorized by state law to provide assistance for the project.

2. (b) Financial assistance to a private entity shall be limited to an eligible project that:

   1. (1) provides transportation services or facilities that provide a demonstrated public benefit; or
   2. (2) is constructed or operated in cooperation with a state agency or political subdivision in accordance with an agreement between that state agency or political subdivision and a private entity.

Source Note:The provisions of this §6.12 adopted to be effective January 8, 1998, 23 TexReg 151.