(

a) A recipient transit agency under the program created pursuant to

Section may apply to the Department of Transportation for a letter of no prejudice for any eligible expenditures under the program, including operating assistance, for which the department has authorized a disbursement of funds. If approved by the department, the letter of no prejudice shall allow the recipient transit agency to expend its own moneys for the expenditures and to be eligible for future reimbursement from moneys available for the program. (

b) The amount expended under subdivision (

a) shall be reimbursed by the state from moneys available for the program if all of the following conditions are met:

(1) The expenditures for which the letter of no prejudice was requested have commenced, and any regional or local expenditures, if applicable, have been incurred.

(2) The expenditures made by the recipient transit agency are eligible under the program. If expenditures made by the recipient transit agency are determined to be ineligible, the state has no obligation to reimburse those expenditures.

(3) The recipient transit agency complies with all applicable legal requirements for the expenditures, including the requirements of the California Environmental Quality Act (Division 13 (commencing with

Section 21000)), and civil rights and environmental justice obligations under state and federal law. Nothing in this

section shall be construed to expand or extend the applicability of those laws to recipient transit agencies.

(4) There are moneys in the Greenhouse Gas Reduction Fund designated for the program and from the recipient transit agency’s formula allocation share as determined pursuant to subparagraph (

B) of paragraph (1) of subdivision (

b) of

Section of the Health and Safety Code that are sufficient to make the reimbursement payment. (

c) The recipient transit agency and the Department of Transportation shall enter into an agreement governing reimbursement as described in this section. The timing and final amount of reimbursement shall be dependent on the terms of the agreement and the availability of moneys in the Greenhouse Gas Reduction Fund for the program. (

d) The Department of Transportation, in consultation with recipient public transit agencies, may develop guidelines to implement this section.