(a) Purposes.--Money in the fund shall be used as follows:
(1) To annually provide the following grants for programs administered by the Department of Transportation:
(i) For programs related to aviation:
(A) $5,000,000 in fiscal year 2013-2014.
(B) $6,000,000 in fiscal year 2014-2015 and each fiscal year thereafter.
(ii) For programs related to rail freight:
(A) $8,000,000 in fiscal year 2013-2014.
(B) $10,000,000 in fiscal year 2014-2015 and each fiscal year thereafter.
(iii) For programs related to passenger rail:
(A) $6,000,000 in fiscal year 2013-2014.
(B) $8,000,000 in fiscal year 2014-2015 and each fiscal year thereafter.
(iv) For programs related to ports and waterways:
(A) $8,000,000 in fiscal year 2013-2014.
(B) $10,000,000 in fiscal year 2014-2015 and each fiscal year thereafter.
(v) $2,000,000 for programs related to bicycle and pedestrian facilities.
(2) To annually pay costs incurred by the department for activities directly initiated or undertaken by the department related to eligible programs in accordance with all of the following:
(i) Activities shall be initiated or undertaken in consultation with the chairman and minority chairman of the Transportation Committee of the Senate and the chairman and minority chairman of the Transportation Committee of the House of Representatives.
(ii) Costs may be incurred as follows:
(A) $0 for fiscal year 2013-2014.
(B) Not to exceed $20,000,000 for fiscal year 2014-2015.
(C) Not to exceed $40,000,000 annually in fiscal year 2015-2016 and each fiscal year thereafter, $35,000,000 of which shall be from revenues deposited into the fund under 75 Pa.C.S. § 9502(a) (relating to imposition of tax).
(3) To annually pay costs incurred by the department in the administration of the programs specified in paragraph (1) as appropriated by the General Assembly.
(4) Annually, any money not allocated under paragraphs (1), (2) and (3) or as provided in subsection (b) shall be transferred to the Commonwealth Financing Authority and used to fund eligible programs. The authority shall develop guidelines for use of the money for eligible programs, which shall include the requirements of section 2106 (relating to local match).
(b) Automatic adjustments.--
(1) For the initial adjustment, the department shall do all of the following:
(i) Determine the percentage increase in the Consumer Price Index for All Urban Consumers for the period beginning August 1, 2013, and ending January 31, 2015.
(ii) Apply, as of July 1, 2015, the increase under subparagraph (i) to every grant amount under subsection (a)(1).
(2) For subsequent adjustments, the department shall do all of the following:
(i) Determine the percentage increase in the Consumer Price Index for All Urban Consumers for the period beginning February 1, 2015, and ending January 31, 2017, and for each succeeding 24-month period.
(ii) Apply, as of July 1, 2017, the increase under subparagraph (i) to the then current grant amount under subsection (a)(1).